Southern District of California
Press releases recorded for this federal judicial district.
Local Doctor and Son Sentenced for Illegally Accumulating and Selling Scarce N95 Respirator MasksRead the Press Release
NEWS RELEASE SUMMARY – July 11, 2023
SAN DIEGO – University City Dermatologist Mona Zohdi Mofid was sentenced in federal court today to two years’ probation after pleading guilty in April to misdemeanor hoarding of N95 respirator masks that had been designated scarce during the COVID-19 pandemic.
Her son, Adam Zohdi Mofid, who previously pleaded guilty to misdemeanor accumulation of N95 respirator masks to sell for price-gouging prices was also sentenced to two years’ probation, including 60 days of home confinement. Additionally, Adam Mofid was fined $1.2 million dollars, and Dr. Mona Mofid was fined $100,000. Both were ordered to perform 200 hours of community service.
Throughout 2020 and into early 2021, the COVID-19 pandemic caused the demand for N95 respirator masks to explode far beyond their supply. In response, on March 25, 2020, N95 respirator masks and other personal protective equipment items were designated as scarce pursuant to the Defense Production Act of 1950 (DPA), which authorizes the president to do so during times of national emergency. This triggered the DPA’s criminal anti-hoarding and anti-price-gouging provisions found at Sections 4512-4513 of Title 50 of the United States Code.
According to Dr. Mona Mofid’s plea agreement, from May 2020 to January 2021, she willfully purchased over 375,000 N95 respirator masks from medical supply companies despite knowing that doing so was unlawful at the time. Adam Mofid admitted in his plea agreement that during the same time period his company, Clinical Supplies USA, generated approximately $15,760,000 of gross income, mostly through the sale of N95 masks that were sold for, on average, 300 percent to 400 percent of their purchase price. For instance, on June 10, 2020, Clinical Supplies USA sold an individual 20 3M Model 8200 N95 masks for $16.99 per mask and 20 3M Model 8210Plus N95 masks for $17.99 per mask. Adam Mofid further admitted that he knew such sales in excess of prevailing market prices were illegal during that period of time.
“While many in our community, especially healthcare providers, responded valiantly to COVID-19, some people took advantage of the pandemic,” said U.S. Attorney Randy S. Grossman. “These defendants are paying the price for selling medical supplies at inflated prices during a national crisis.” Grossman thanked the prosecution team and the FBI for their excellent work on this case
“As the severity of the pandemic became apparent in our community and so many others, Mona and Adam Mofid sought to take advantage of the world-wide crisis, and gain an unfair advantage, by stockpiling these vital products and selling them for price-gouging prices to facilitate their greed,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “In particular, Dr. Mofid’s hoarding of such sought-after medical products transgressed her oath as a physician to do no harm. The FBI and our law enforcement partners will continue to hold price gaugers accountable and bring them to justice.”
DEFENDANTS Case Number 23cr530-DDL
Mona Zohdi Mofid Age: 51 La Jolla, CA
Case Number 23cr550-DDL
Adam Zohdi Mofid Age: 21 St. Louis, MO
SUMMARY OF CHARGES
Defense Production Act – Title 50, U.S.C., Sections 4512-4513
Maximum penalty: One year in prison and fine of greatest of $100,000 or twice the gross pecuniary gain
AGENCY
Federal Bureau of Investigations
*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.
Kratom Company and Owner Plead GuiltyRead the Press Release
NEWS RELEASE SUMMARY – July 10, 2023
SAN DIEGO – Nine2Five LLC and its owner, Sebastian Guthery, pleaded guilty in federal court today to felony crimes related to the illegal importation of kratom, an opioid-like plant, and the subsequent laundering of proceeds from the sale of the illegally imported product.
Mitragyna speciosa, commonly known as kratom, is indigenous to Southeast Asia. Its leaves, when ingested, have both narcotic and stimulant-like effects. According to the U.S. Food and Drug Administration (FDA), the use of kratom is associated with serious health risks, including but not limited to seizures, liver damage, addiction, and death. Side effects may also include respiratory depression, nervousness, agitation, aggression, sleeplessness, hallucinations, delusion, tremors, loss of libido, constipation, nausea, vomiting, and severe withdrawal signs and symptoms.
On February 28, 2014, the FDA issued Import Alert 54-15, which directed inspectors to detain products that appeared to contain kratom as well as named product from specified firms without inspection, and to deny them entry into the United States. The Import Alert stated that the FDA had determined kratom to be a new dietary ingredient under section 413(d) of the Act, and deemed products intended for human consumption containing kratom to be adulterated food under section 402(f)(1)(B) of the Act because there was inadequate information to provide reasonable assurance that the new dietary ingredient kratom did not present a significant or unreasonable risk of illness or injury. This Import Alert remains in effect.
In pleading guilty, defendant Guthery admitted that, as the owner and operator of Nine2Five LLC, he caused the importation of 9,800 kg of kratom from Indonesia through a consignee named Middleton Central, LLC, by means of an invoice which falsely declared the product to be Flora Food Botanical Soil Conditioner (Eucheuma spinosum)/fertilizer, without reasonable cause to believe that was true. The invoice submitted on May 16, 2018, with the entry package, stated that the value of the goods was $61,728.
Defendant Nine2Five, LLC, in pleading guilty to money laundering, admitted that a Nine2Five, LLC. employee wired $60,000 from an account of Nine2Five, LLC at Wells Fargo Bank in San Diego, California, to Bank Mandiri in Indonesia for the cost of the purchase, transportation and importation of kratom from Indonesia on May 15, 2018. The funds constituted criminally derived proceeds of the illegal importation of kratom in the manner acknowledged by Guthery in his plea, which constituted a violation of Title 18, United States Code, Sections 542 and 545.
“Making false declarations about the nature of products imported into the United States will not be tolerated,” said U.S. Attorney Randy Grossman. “The Department of Justice and our agency partners are committed to protecting our nation from importation crimes and related offenses.” Grossman thanked the prosecution team plus the Internal Revenue Service, Homeland Security Investigations, and Customs and Border Protection agents for their excellent work on this case.
“HSI San Diego is deeply immersed in the global fight against illegal importation and money laundering,” said Chad Plantz, special agent in charge for HSI San Diego. “Attempting to smuggle even more harmful substances into our communities will not be tolerated. Further, deceiving law enforcement is illegal and by doing so only increases the severity of penalties. HSI is actively engaged with law enforcement partners and task forces to bring perpetrators who knowingly and willingly break the law to justice.”
“Sebastian Guthery and Nine2Five LLC went unchecked by mislabeling imports of kratom to evade detection and inspection by U.S. authorities and laundering the criminally derived proceeds internationally to purchase more kratom. The import laws and regulations are in place to protect our citizens and our nation,” said Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation Los Angeles Field Office. “This should put the kratom industry on notice, illegally importing products into the United States for your own financial gain is a crime and disregarding U.S. import laws and import alerts will not go unnoticed, you will be held accountable.”
Sentencing for both defendants is scheduled to take place on October 6, 2023 at 9:30 a.m. before U.S. District Judge Todd W. Robinson.
DEFENDANTS Case Number 23cr179-TWR
Nine2Five, LLC Formed: 2012 Carlsbad, CA
Sebastian Guthery Age: 40 Carlsbad, CA
SUMMARY OF CHARGES
Defendant Sebastian Guthery
Entry of Goods by Means of False Statement – Title 18, U.S.C., Section 542
Maximum Penalty: Two years in prison and/or $250,000 fine
Defendant Nine2Five LLC
Money Laundering – Title 18, U.S.C., Section 1957
Maximum penalty: Five years of probation and $500,000 fine for an organization
AGENCIES
Internal Revenue Service
Homeland Security Investigations
Customs and Border Protection
Man Sentenced to 46 Months for Using Stolen Identities of UCSD Students to Commit Bank Fraud and Pandemic-related Unemployment FraudRead the Press Release
Nehemiah Joel Weaver—who used the stolen identities of UCSD undergraduate students to commit bank and Covid-related frauds and then threatened someone he believed was working to expose his crimes—was sentenced in federal court to 46 months in prison and ordered to pay $225,392 in restitution to victims.
Weaver pleaded guilty in September 2022 to bank fraud, mail fraud, wire fraud and aggravated identity theft charges. He admitted to using the identities of at least 15 people, a group that included UCSD students, his former supervisor, and a former girlfriend. Weaver’s co-defendant, Mia Nikole Bell, admitted to stealing the student identities in her capacity as a UCSD employee and to providing them to Weaver. She was sentenced in December 2022 to four months in custody and was ordered to pay $16,480 in restitution.
Weaver further admitted in his plea agreement that he initially used some of the identities to open accounts and take out loans in the victims’ names at a credit union. Months later, he used the identities to obtain over $200,000 in Covid-related unemployment benefit payments from California and Arizona.
When Weaver learned of law enforcement’s investigation into his fraud, he sent threatening text messages to a perceived cooperating witness—including one in which he claimed to have “[p]aid good money” to have them killed.
Weaver also sent these text messages to the supposed cooperating witness: “NO MERCY!” “How long do you think you will be safe for? You are just a sitting duck[.]” “Lol so dead you don’t even know it yet[.]” “Can’t wait to see the look on your face. Paid good money to see it.”
In imposing the sentence, U.S. District Judge Gonzalo P. Curiel noted Weaver was on probation for felony identity theft convictions when he committed these new crimes. The judge noted the harm, anger, and fear that identity theft causes victims and observed that Weaver defrauded government agencies that exist to help people. Judge Curiel ordered the forfeiture of cash and the luxury vehicle that investigators seized from Weaver.
“Mr. Weaver used stolen identities to defraud critical state agencies that sought to help Americans during the early stages of the COVID-19 pandemic,” said United States Attorney Randy S. Grossman. “This office will continue to work with our federal, state, and local agency partners in the investigation of such crimes and the pursuit of justice for victims.”
Grossman thanked the prosecution team, the United States Secret Service and the San Diego Police Department for their excellent work on this case.
“Today’s sentencing is an example of our dedication and commitment to protecting the American financial system and targeting those who, by fraudulent means, seek to exploit and profit from government assistance programs,” said Special Agent in Charge Jason Reynolds, San Diego Field Office, U.S. Secret Service. “We, along with our law enforcement partners, are committed to pursuing justice and holding criminals accountable for their actions.”
As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, Congress provided new unemployment benefits for those affected by the COVID-19 Pandemic who would not otherwise qualify for unemployment insurance. The EDD administers unemployment insurance benefits in California, and DES does the same in Arizona.
If you think you are a victim of COVID-19 fraud, immediately report it the FBI (visit ic3.gov, tips.fbi.gov, or call 1-800-CALL-FBI or the San Diego FBI at 858-320-1800. In addition, the public is urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
DEFENDANTS Case Number 21-CR-2722-GPC
Nehemiah Joel Weaver Age: 37 San Diego, CA
Mia Nikole Bell Age: 32 Houston, TX
SUMMARY OF CHARGES
Bank Fraud – Title 18, U.S.C., Section 1344(1)
Maximum penalty: Thirty years in prison; $1 million fine or twice the pecuniary gain/loss
Mail Fraud – Title 18, U.S.C., Section 1341
Maximum penalty: Twenty years in prison; $250,000 fine or twice the pecuniary gain/loss
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison; $250,000 fine or twice the pecuniary gain/loss
Aggravated Identity Theft – Title 18, U.S.C., Section 1028A
Mandatory minimum two years in prison
AGENCIES
United States Secret Service
San Diego Police Department
Customs and Border Protection Officer Indicted for Receiving Bribes, Allowing Drug-laden Vehicles to Enter the U.S.Read the Press Release
NEWS RELEASE SUMMARY – July 3, 2023
SAN DIEGO – U.S. Customs and Border Protection Officer Leonard Darnell George was charged in an indictment unsealed today with accepting bribes to allow vehicles containing drugs such as fentanyl and methamphetamine to pass through the border into the U.S.
In addition, George is charged along with Mario Angel Gutierrez, Esteban Galvan and four other unnamed defendants with conspiracy to import and conspiracy to distribute controlled substances in the Southern District of California and elsewhere. According to the indictment and other public records, the defendants allegedly coordinated the smuggling of methamphetamine, fentanyl, cocaine, and heroin from Mexico with an ultimate destination of the United States.
Officer George is charged separately with receiving bribes. The indictment alleges that he did directly and indirectly corruptly demand, seek, receive, accept, and agree to receive items of value in return for being induced to permit narcotics laden vehicles entry into the United States in violation of his official duties, that is failing to enforce controlled substances and customs laws of the United States.
Gutierrez is charged separately with possession of a firearm in furtherance of a drug trafficking crime.
“The indictment alleges that Officer George broke the very drug trafficking laws that he was supposed to enforce,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office and our agency partners in the Southern District of California are committed to rooting out and punishing corruption.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“This significant arrest demonstrates great teamwork and coordination by HSI and its federal law enforcement partners to dismantle transnational criminal organizations and root out alleged corruption in our government,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “HSI is committed to protecting our homeland and the people of this country.”
“The Department of Homeland Security Office of Inspector General will continue to work closely with our law enforcement partners to aggressively investigate all allegations of corruption. Today’s arrest reinforces our commitment to protecting the integrity of DHS personnel, programs, and operations,” said Homeland Security Inspector General Joseph V. Cuffari, Ph.D.
“It is the responsibility of all government employees to operate with the utmost integrity and do their best to foster and maintain the public's trust,” said FBI San Diego Field Office Special Agent in Charge Stacey Moy. “Anyone who violates that trust will be held accountable for their actions.”
“The vast majority of CBP officers are highly skilled, hard-working professionals dedicated to our mission of protecting the American public and we do not stand for those that would tarnish our badge,” said Sidney Aki, Director of Field Operations for CBP in San Diego. “The San Diego Field Office will cooperate fully as the case proceeds.”
A detention hearing is scheduled for July 6, 2023, at 10 a.m. before U.S. Magistrate Judge Barbara Major.
SUMMARY OF CHARGES Case Number 23CR1291
Receiving Bribe by Public Official – Title 18, U.S.C., Section 201
Maximum penalty: Fifteen years in prison
Conspiracy to Import Controlled Substances – Title 21 U.S.C., Sections 952, 960, 963
Maximum penalty: Life in prison with a 10-year mandatory minimum
Conspiracy to Distribute Controlled Substances – Title 21 U.S.C., Sections 841(a)(1), 846
Maximum penalty: Life in prison with a 10-year mandatory minimum
Possession of Firearm in Furtherance of a Drug Trafficking Crime – Title 18 U.S.C. § 924(c)
Maximum penalty: Consecutive five-year mandatory minimum
AGENCIES
Federal Bureau of Investigation (FBI)
Department of Homeland Security – Office of Inspector General (DHS OIG)
Homeland Security Investigations (HSI)
Customs and Border Protection – Office of Professional Responsibility (CBP OPR)
Drug Enforcement Administration (DEA)
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Poway Man Hid Mother’s Death for 30 Years, Stole More than $800,000 in Government Benefits Intended for HerRead the Press Release
NEWS RELEASE SUMMARY – June 27, 2023
SAN DIEGO – Donald Felix Zampach of Poway pleaded guilty in federal court today to money laundering and social security fraud, admitting that he fraudulently concealed his mother’s death for decades and that he received and then laundered hundreds of thousands of dollars in government benefits intended for her, that should have ceased upon her death.
According to his plea agreement, Zampach’s mother died in Japan in 1990, and at the time of her death she was receiving a widow’s pension from the Social Security Administration and an annuity from the Department of Defense Finance Accounting Service. Just before his mother’s death, Zampach fraudulently conveyed her Poway home and filed for Chapter 7 personal bankruptcy, disclosing neither his ownership of the Poway home nor the government benefits payments he was receiving. After his mother’s death, Zampach maintained her bank accounts, forged her signature on certificates of eligibility to keep her government benefits in pay, and filed forged federal income tax returns, posing as his mother, for over two decades.
Zampach admitted that between November 1990 and September 2022, he received at least $830,238 in stolen public money intended for his mother. Zampach also admitted to using his mother’s identity to fraudulently open credit accounts with at least nine different financial institutions, causing them to suffer a loss of more than $28,000. Zampach admitted to laundering the stolen money to pay off the mortgage on his Poway home, in order to conceal both his ownership of the Poway home and the fact that the money he used constituted criminal proceeds of his fraud.
Under the terms of his plea agreement, Zampach has agreed to pay more than $830,000 in criminal forfeiture, including the forfeiture of his Poway home to make restitution for his crimes.
“This crime is believed to be the longest-running and largest fraud of its kind in this district,” said U.S. Attorney Randy Grossman. “This defendant didn’t just passively collect checks mailed to his deceased mother. This was an elaborate fraud spanning more than three decades that required aggressive action and deceit to maintain the ruse. He filed false income tax returns, posed as his mother and signed her name to many documents, and when investigators caught up to him, he continued to claim she was still alive. As a result of this fraud, he received more than $800,000 in stolen public money. For his deceit, he will face justice.” Grossman thanked the prosecution team and investigating agencies for their diligence.
“For more than three decades, Mr. Zampach failed to report the death of his mother to the Social Security Administration (SSA) and used more than $250,000 in benefits for himself,” said Gail S. Ennis, Inspector General for SSA. “We will continue to pursue and hold those accountable who defraud SSA. I want to thank the U.S. Attorney’s Office and Special Assistant U.S. Attorney Jeffrey D. Hill for prosecuting this case.”
“Mr. Zampach's guilty plea is an acknowledgement of his decades-long identity theft scheme in which he benefited financially from the theft of Department of Defense (DoD) and Social Security retirement benefits,” said DoD Inspector General Robert P. Storch. “The DoD Office of Inspector General, through the Defense Criminal Investigative Service, stands together with our law enforcement partners and the Department of Justice to hold accountable those who choose to engage in beneficiary fraud, particularly as it relates to the DoD.”
Zampach was released on bail pending his sentencing hearing, which is scheduled before U.S. District Judge Cathy Ann Bencivengo on September 20, 2023, at 9:00 a.m.
DEFENDANT Case Number 23cr1268-CAB
Donald Felix Zampach Age: 65 Poway, CA
SUMMARY OF CHARGES
Money Laundering – Title 18, U.S.C., Section 1956(a)(1)(B)(i)
Maximum penalty: Twenty years in prison and $500,000 fine
Social Security Fraud – Title 42, U.S.C. Section 408(a)(4)
Maximum penalty: Five years in prison and $250,000 fine
AGENCIES
Social Security Administration – Office of the Inspector General
Department of Defense – Office of the Inspector General – Defense Criminal Investigative Service
Father and Son Guilty in $21 Million Medicare Fraud SchemeRead the Press Release
NEWS RELEASE SUMMARY – June 15, 2023
SAN DIEGO - El Cajon resident and businessowner Anthony Duane Bell, Sr., pleaded guilty in federal court today, admitting that he fraudulently received more than $21 million in Medicare payments. His son and namesake, Anthony Duane Bell, Jr., admitted making false statements to the FBI to conceal the fraudulent scheme.
As part of his guilty plea, Bell, Sr. agreed to pay $21,725,604.56 in restitution to Medicare and forfeit $806,375.12 and a multi-million-dollar luxury house in El Cajon.
According to court records, the Bells created companies known as Universal Medical Solutions 1 and Universal Medical Solutions 2, with locations in Santee and San Diego. The companies supplied durable medical equipment like knee, ankle, wrist, shoulder, and back braces. The Bells obtained customers for their companies by paying thousands of dollars in kickbacks to “marketing” companies. To obtain the prescriptions, the marketing companies paid doctors for the medically unnecessary prescriptions for braces. The Bells sought to conceal their fraudulent kickback scheme by entering into sham “marketing” agreements and other contracts. In truth, the Bells were paying a set fee per brace to purchase the patients. The Bells would then send the braces to the Medicare beneficiaries and bill Medicare for the medically unnecessary braces. The Bells paid significantly less for the braces than they billed Medicare.
When Bell Jr. was interviewed by the FBI, he falsely stated that he had never heard of PA Healthcare Pharmaceuticals, a provider of durable medical equipment and his former employer.
“Fraudulent conduct that exploits the Medicare system erodes public support for this important program and squanders taxpayer resources,” said U.S. Attorney Randy Grossman. “I am grateful to our prosecution team and agency partners for their efforts to bring these crimes to justice.”
“Medicare is an essential government program that is supposed to assist some of our most vulnerable citizens with getting the healthcare they need. It should not be used as a ‘get rich’ scheme by scammers,” said FBI San Diego Acting Special Agent in Charge, Thomas Ryan. “People who exploit government programs to attempt to mask their malicious acts will continue to be investigated and held accountable by the FBI and our law enforcement partners.”
The Bells are scheduled to be sentenced on January 8, 2024, at 9 a.m., before U.S. District Judge William Q. Hayes.
The investigation was conducted by the Federal Bureau of Investigation, Department of Health and Human Services, and United States Marshal’s Service. The case is being prosecuted by Assistant U.S. Attorneys Valerie H. Chu and Christopher M. Alexander of the Southern District of California.
DEFENDANTS Criminal Case No. 20CR2887-WQH
Anthony Duane Bell Sr. Age: 54 El Cajon, California
Anthony Duane Bell Jr. Age: 33 Los Angeles, California
SUMMARY OF CHARGES
Health Care Fraud, a felony, in violation of Title 18, United States Code, Section 1347
Maximum Penalty: Ten years in custody; $250,000 fine
False Statement, a felony, in violation of Title 18, United States Code, Section 1001
Maximum Penalty: Five years in custody; $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Department of Health and Human Services, Office of Inspector General
United States Marshal’s Service
Jury Convicts Brothers Who Conducted Pump and Dump Scheme on Company that Sold Home COVID-19 TestsRead the Press Release
NEWS RELEASE SUMMARY – June 22, 2023
SAN DIEGO – A federal jury has convicted brothers Joshua Yafa and Jamie Yafa, both Florida citizens, of participating in a securities fraud pump-and-dump scheme surrounding the publicly-traded stock of two small companies.
The jury found that the Yafa brothers both committed securities fraud by manipulating the market for the stock of Global Wholehealth Partners Corp. and Nunzia Pharmaceutical Corp. According to the evidence presented at trial, the Yafas worked alongside their co-conspirators to artificially inflate the price and volume of these companies’ stocks by controlling the majority of the company’s free-trading shares through concealed nominee accounts, coordinating the company’s press releases with the issuance of penny stock newsletters, paying analysts to write rosy reports about the companies, and using call rooms, all to create a buying frenzy for the stocks among unwitting investors.
The FBI investigated this case through a combination of forensic analysis and sophisticated covert techniques, including the use of an undercover agent and an informant, both of whom gathered evidence through recorded phone conversations and captured email and text messages.
Central to the scheme were penny stock newsletters that the Yafas created and emailed to thousands of investors. In a single six-month period, for example, the Yafas distributed 116 newsletters touting the stock of Global Wholehealth Partners. The newsletters were sent under various publication names, including OTC Tip Reporter, BuzzStocks, marketCALIBER, and Penny Stock Prophet, but the publications often carried virtually the same content, and always predicted tremendous investment returns; this despite the fact that Global Wholehealth Partners was severely underfunded and had made only a handful of sales in its entire existence.
The conspirators focused heavily on touting Global Wholehealth Partners because the company purported to have access to an early COVID-19 testing product that it could sell to consumers. They hoped that creating excitement among investors about the company’s stock based on the pandemic would make their pump-and-dump scheme extremely profitable.
The Yafas were just two of several defendants who were charged. Their co-conspirators, Brian Volmer and Carl Marciniak of Nevada, and Charles Strongo of Calfornia, all previously pleaded guilty in connection with the scheme.
“This verdict should send a clear message: Pump-and-dump and similar market manipulation schemes are serious crimes, and the Department of Justice will continue to hold those who engage in these schemes accountable,” said U.S. Attorney Randy Grossman.” Grossman thanked the prosecution team and FBI agents who diligently pursued this matter.
“The FBI remains committed to aggressively pursuing individuals like the Yafa brothers who intentionally degrade the integrity of the United States financial markets,” said FBI San Diego Special Agent in Charge Stacey Moy. “Market manipulation schemes can be devastating for the victims they affect, and we will continue to collaborate with our local, state and federal partners to hold those who perpetrate them accountable.”
The U.S. Attorney’s Office expresses its appreciation for assistance provided by the Securities and Exchange Commission, and FINRA’s Criminal Prosecutions Assistance Group.
Joshua and Jamie Yafa are scheduled to be sentenced on September 25, 2023.
DEFENDANTS Case Number 21CR1310-WQH
Joshua Yafa Age: 49 Boca Raton, FL
Jamie Yafa Age: 44 Kissimmee, FL
SUMMARY OF CHARGES
Securities Fraud – Title 15, U.S.C., Section 78(j)
Conspiracy to Commit Securities Fraud – Title 18., U.S.C., Section 371
Maximum Penalty: Twenty years in prison
AGENCY
Federal Bureau of Investigation
Romanian Citizens Plead Guilty to Laundering $1.4 Million in Proceeds from Jewelry Thefts and Covid FraudRead the Press Release
NEWS RELEASE SUMMARY – June 20, 2023
SAN DIEGO – Eduard Ghiocel and Floarea Ghiocel, married Romanian nationals and leaders of a Romania-based transnational organized crime group, pleaded guilty today to laundering $1.4 million in proceeds from dozens of grand thefts, robberies and swindles targeting mostly elderly victims in San Diego County.
According to their plea agreement, Eduard and Floarea Ghiocel, along with the assistance of co-conspirators Gabriel Ghiocel, Marius Ghiocel, Larisa Ghiocel, and Argentina Alexandru, conducted a series of 17 grand thefts and robberies of jewelry in elderly communities in San Diego. Defendants and co-conspirators then pawned the stolen, expensive jewelry and watches for cash in jewelry stores in Los Angeles. In addition, Eduard and Floarea Ghiocel admitted to submitting fraudulent unemployment claims to the California Employment Development Department (EDD), and together with their co-conspirators received a total of approximately $32,250 in California unemployment insurance benefits intended to help workers impacted by the COVID-19 pandemic.
Eduard and Floarea Ghiocel admitted to sending cash from the jewelry thefts and the stolen unemployment insurance proceeds by wire transfers to Romania via Money Service Businesses, and using the stolen proceeds to purchase gold bars, gold coins, and high-end luxury vehicles from locations in Southern California and shipping these items to Romania. In total the Ghiocel Sub-Group sent $1,367,652.02 from illicit funds to Romania, knowing the money represented the proceeds of grand thefts and robberies of jewelry, and California EDD fraud, the plea agreement said.
In a forfeiture addendum, Eduard and Floarea Ghiocel also agreed to forfeit assets including a white 2019 Lamborghini Urus, a black 2020 Ferrari Portofino, two gold coins worth $4,000, and $1,896.37 worth of U.S. currency. These items were seized across Valcea County, Romania on March 14, 2023 pursuant to seven Romanian search warrants issued by the Bucharest Tribunal and executed by police officers from the Romanian National Police's Directorate for Combatting Organized Crime, Service for Combatting Organized Criminal Groups, and Service for Combatting Organized Crime Valcea, assisted by FBI and IRS officers. Eduard and Floarea Ghiocel also agreed to forfeit a blue 2021 Lamborghini Urus and a BMW X4, also seized in Romania pursuant to the aforementioned warrants. After the defendants are sentenced and the forfeiture finalized, it is the intent of the U.S. Attorney to seek restoration of the forfeited properties to pay restitution to victims.
The co-conspirators remain at large in Romania.
“These defendants led an international crime ring that stole beloved personal items from elderly victims,” said U.S. Attorney Randy Grossman. “They thought that seniors would be easy marks, but the plan has backfired. Our prosecution team and agencies followed the organized crime group’s trail all the way to Romania to assist in the seizure of assets laundered from stolen jewelry and pandemic funds in California.”
Grossman thanked the prosecution team and agencies along with their international partners for their inexhaustible efforts to bring justice for these victims.
“This scheme is egregious because it specifically targeted our most vulnerable citizens,” said FBI San Diego’s Special Agent in Charge Stacey Moy. “The FBI is allocating as many resources as possible to identify and bring to justice individuals who are preying on our older adult population.”
“Too many people suffer at the hands of this type of organized crime,” said San Diego Police Chief David Nisleit. “We will continue working with our law enforcement partners to hold these criminals and their co-conspirators accountable.”
“While most people were worrying about how to stay healthy and protect their loved ones during the height of the pandemic, Eduard Ghiocel and Floarea Ghiocel were busy victimizing the elderly within our communities and targeting relief programs. They will now face the consequences of their crimes and their flagrant disregard for our communities,” said Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation Los Angeles Field Office. “Investigating individuals and organizations that prey on vulnerable communities and exploited the CARES act is one of our top priorities. IRS-CI will continue to work closely with our law enforcement partners locally and internationally to locate and hold criminal organizations accountable for their crimes.”
Assistance was provided by the Romanian National Police (Service for Combatting Organized Criminal Groups and Service for Combatting Organized Crime Valcea) and the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime). The Justice Department’s Office of International Affairs also provided significant assistance.
The couple is scheduled to be sentenced on August 21 at 10 a.m. before U.S. District Judge Larry Burns.
DEFENDANTS Case Number: 23-cr-00650-LAB
Eduard Ghiocel (1) Age: 47 Transient, Romanian
aka Eduard Alexandru, aka “Filica”
Floarea Ghiocel (2) Age: 48 Transient, Romanian
aka Floarea Alexandru
SUMMARY OF CHARGES
Title 18 U.S.C. § 1956(h) and Title 18 U.S.C. § 1956(a)(2)(A) — Conspiracy to Transport Funds to Promote Unlawful Activity
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
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Police Department
Internal Revenue Service
California Employment Development Department Investigative Division
U.S. Department of Homeland Security
Department of Labor Office of Investigator General
Former Union President Admits Filing False Report to Hide Embezzlement; Agrees to Repay Union $36,000Read the Press Release
SAN DIEGO - Felix Luciano, the former President of Local 2805 chapter of the American Federation of Government Employees and former Department of Homeland Security officer, pleaded guilty in federal court today, admitting he filed a false report to conceal his embezzlement of thousands of dollars in union dues.
Local 2805 is a labor union which represents Department of Homeland Security, Immigration and Customs Enforcement employees in San Diego and Imperial Counties. Additionally, Luciano agreed to pay a $10,000 fine and repay Local 2805 $36,000 as money that he embezzled.
According to court records, Luciano was president of Local 2805. 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, who are the backbone of our community, devote their hard-earned money to labor unions, they rightly expect the officers to be honest stewards of their dues,” said U.S. Attorney Randy Grossman. “Felix Luciano abused the trust of the ICE government employees represented by Local 2805 by using the union’s money for his own personal benefit and enrichment, and then filed a false financial report that concealed the misappropriation of those funds.” Grossman thanked the prosecution team and investigation agencies for their work on this case.
“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.”
Luciano is scheduled to be sentenced on September 15, 2023 at 9:00 a.m. before U.S. District Judge Jinsook Ohta.
DEFENDANT Case No. 22CR2201-JO
Felix Luciano Age: 61 San Diego, California
SUMMARY OF CHARGE
False Statement, a felony, in violation of Title 18, United States Code, Section 1001.
Maximum Penalty: Five years in custody; a fine of $250,000
INVESTIGATING 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
Chula Vista Man Sentenced to 12 Years in Prison for Attempted Sex Trafficking of a ChildRead the Press Release
NEWS RELEASE SUMMARY – June 14, 2023
SAN DIEGO – Keenon Green, who used social media to try to recruit someone he believed was a 16-year-old female into prostitution, was sentenced today in federal court to144 months in prison.
A jury convicted Green of Attempted Sex Trafficking of Children and Attempted Enticement of a Minor after a three-day jury trial in February.
According to evidence presented at trial, from December 16, 2021, to January 14, 2022, Green used Instagram direct messages and cell phone text messages to lure into prostitution a social media user he knew as “Lexi,” who told him she was 16 years old.
Green promised to provide protection for Lexi on “the blade,” a slang term that refers to an area where prostitutes/sex workers solicit sex-buyers. He also promised to get her a false identification and post commercial sex advertisements for her online. He assured her that she could “charge 350 a hour and only be in there 30 mins max.” He even offered to teach her how to drive. And in return, he expected Lexi to earn $500 a night as a prostitute, and $1,000 a night if they were out of town.
When Lexi finally agreed, he arranged to pick her up at a local park and planned to take her to Orange County to work on “the blade.” Showing his intent to follow through on that plan, he arrived at the meeting location with feminine items in the trunk of his vehicle, including hair products and a bottle of Vagisil. However, Lexi was not a 16-year-old female, but an undercover officer with the San Diego Sheriff’s Department, and he was greeted by law enforcement and immediately arrested.
Evidence presented at trial, and also discussed at the sentencing hearing, demonstrated that Green’s pimping activity was not just aspirational. Post-arrest, he admitted he “ran” seven to nine other women and had earned tens of thousands of dollars, bragging that he “lives off the earnings of a prostitute.” Instagram records showed that at the same time he was enticing Lexi to work for him as a prostitute, he was attempting to recruit multiple other women on Instagram, telling them that their “anatomy is the most valuable thing on this earth” and that he could help them “use it wisely.” Green also was not above using violence and threats of violence to keep his prostitutes in line. In an audio message presented at sentencing, Green repeatedly threatened one woman who was working for him as a prostitute, screaming that he would “break [her] fucking jaw,” “beat the shit out of [her],” “stomp a fucking mudhole in [her],” and “play games with [her] face.”
“The sentence imposed today recognizes the severity of the crime for which Mr. Green has been convicted,” said U.S. Attorney Randy Grossman. “Fortunately, proactive efforts by our law enforcement partners identified Mr. Green as someone willing to exploit the most vulnerable members of our society for nothing more than his own financial gain. This case should serve as a clear warning that law enforcement will not tolerate these crimes and will do everything in our power to protect children in our communities.” Grossman thanked the prosecution team, the San Diego Human Trafficking Task Force, Homeland Security Investigations, and the San Diego Sheriff’s Department for their excellent work on this case.
“Today’s announcement is a result of strong partnerships by law enforcement agencies uniting to put a stop sexual violence and exploitation,” said California Attorney General Rob Bonta. “Today’s sentencing sends a strong message that those who engage in sex trafficking and target vulnerable youth in our communities will be held accountable to the fullest extent of the law. I want to thank my team with the San Diego Human Trafficking Task Force, the U.S. Attorney’s Office, and our local, state, and federal law enforcement partners for their collaboration in making California a safer place. When we work together, we get results. Protecting public safety is our highest priority and we won’t rest until the job is done.”
“Sex traffickers typically prey on and sexually exploit the most vulnerable population; fortunately, in this case, the defendant was speaking to a law enforcement officer – not a 16-year-old girl,” said Chad Plantz, special agent in charge for HSI San Diego. “HSI is committed to using proactive efforts to target and prevent sex trafficking offenses. Together, we can more effectively eradicate this vile criminal activity from the community.”
“The Sheriff’s Department is proud of the collaborative efforts by all involved in this investigation and prosecution. This teamwork is vitally important in targeting the people involved in this type of criminal behavior. The department is committed to these partnerships as we continue in our efforts to prevent these crimes from occurring.”
DEFENDANT Case Number 22-cr-187-CAB
Keenon Green Age: 35 Chula Vista
SUMMARY OF CHARGES
Attempted Sex Trafficking of Children – Title 18, U.S.C., Section 1591(a)
Maximum Penalty: Life in prison and $250,000 fine, with 10-year mandatory minimum
Attempted Enticement of a Minor – Title 18, U.S.C., Section 2422(b)
Maximum Penalty: Life in prison and $250,000 fine, with 10-year mandatory minimum
INVESTIGATING AGENCIES
San Diego Human Trafficking Task Force
Homeland Security Investigations
San Diego Sheriff’s Department
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.
Chief Engineer Convicted for Obstruction of Justice and Oil Record Book Offenses; Operating Company Pleads Guilty to Oil Record Book OffenseRead the Press Release
NEWS RELEASE SUMMARY – June 13, 2023
SAN DIEGO – Vessel Chief Engineer Denys Korotkiy was convicted by a federal jury of conspiracy to obstruct justice, obstruction of justice, and failure to maintain an accurate oil record book for the vessel Donald following a five-day jury trial in San Diego.
The company that operates the vessel, Interunity Management (Deutschland) GMBH, previously pleaded guilty for maintaining false and incomplete records relating to the discharge of oily bilge water.
The evidence showed that oily bilge water was illegally dumped from the Donald directly into the ocean through the vessel’s sewage holding tank without being properly processed through required pollution prevention equipment. Oily bilge water typically contains oil contamination from the operation and cleaning of machinery on the vessel. These illegal discharges were not recorded in the vessel’s Oil Record Book as required by law. The evidence also showed that Korotkiy made false and fictitious entries in the Oil Record Book claiming transfers of oily bilge had been made from the vessel’s engine room bilge wells to the vessel’s Bilge Holding Tank when, in fact, those transfers had not been made. Finally, the evidence showed that Korotkiy conspired with others to obstruct the United States Coast Guard’s inspection and investigation into the mishandling of oily bilge water onboard the motor vessel Donald.
At the conclusion of the trial, the court remanded Chief Engineer Korotkiy to custody. Sentencing is scheduled for Sept. 1.
“Unlawful oil discharges can cause immeasurable harm to the marine environment,” said U.S. Attorney Randy Grossman. “We will continue to work closely with our agency partners to safeguard our oceans by vigorous enforcement of environmental laws. Today’s case is a reflection of that commitment.” Grossman thanked the prosecution team and the U.S. Coast Guard for their excellent work on this case.
“The illegal discharge of oily bilge water at sea and the falsification and destruction of records in order to obstruct the United States’ ability to investigate those discharges are crimes we take seriously,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The Department of Justice will continue to work with our partner agencies to ensure polluters are held fully accountable.”
“This prosecution highlights the Department of Justice and the U.S. Coast Guard’s dedication in safeguarding our oceans against those that seek to deliberately harm our natural resources,” said Captain James Spitler, Sector Commander, Coast Guard Sector San Diego. “Illegal dumping of oil and falsification of oil record books are egregious violations. This guilty verdict should serve as a reminder that the Coast Guard and our partners at the Department of Justice will work tirelessly to hold accountable those that seek to deliberately discharge oil and falsify records.”
In the same matter, Interunity Management (Deutschland) GMBH pleaded guilty to a felony violation of the Act to Prevent Pollution from Ships, 33 U.S.C. § 1908(a), for failing to accurately maintain the Donald’s Oil Record Book. Under the terms of the plea agreement and subject to court approval, New Trade will pay a total fine of $1.25 million and serve a four-year term of probation, during which any vessels operated by the company and calling on U.S. ports will be required to implement a robust Environmental Compliance Plan. Chief Engineer Korotkiy will be sentenced on September 1, 2023, by the Court for his role.
The plea agreement for the company requires it to pay $312,500 to the National Fish and Wildlife Foundation as a community service payment, to be used to fund research at the Tijuana River National Estuarine Research Preserve.
This case was investigated by the U.S. Coast Guard Sector San Diego, and the U.S. Coast Guard Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Melanie K. Pierson of the U.S. Attorney's Office for the Southern District of California and Senior Trial Attorney Stephen Da Ponte of the Environmental Crimes Section of the Department of Justice.
DEFENDANT Case Number 22cr2762-TWR
Denys Korotkiy Age: 40 Ukraine
SUMMARY OF CHARGES
Conspiracy to Obstruct Justice, in violation of Title 18, United States Code, Section 371
Maximum penalty: Five years in prison and $250,000 fine
Obstruction of Justice, in violation of Title 18, United States Code, Section 1519
Maximum penalty: Twenty years in prison and $250,000 fine
Failure to Maintain an Accurate Oil Record Book, in violation of Title 33, United States Code, Section 1908(a)
Maximum penalty: Six years in prison and $500,000 fine
DEFENDANT
Interunity Management (Deutschland) GMBH
SUMMARY OF CHARGES
Failure to Maintain an Accurate Oil Record Book, in violation of Title 33, United States Code, Section 1908(a)
Maximum penalty for a corporation: Five years of probation and a fine of $500,000 or twice the gross gain or loss from the offense
INVESTIGATING AGENCIES
U.S. Coast Guard Sector San Diego, Coast Guard Investigative Service
Chief Engineer Convicted for Obstruction of Justice and Oil Record Book Offenses; Operating Company Pleads Guilty for Oil Record Book OffenseRead the Press Release
On June 9, vessel Chief Engineer Denys Korotkiy was convicted of conspiracy to obstruct justice, obstruction of justice, and failure to maintain an accurate oil record book for the vessel Donald in San Diego, California, following a five-day jury trial. Interunity Management (Deutschland) GMBH, a vessel operating company, previously pleaded guilty for maintaining false and incomplete records relating to the discharge of oily bilge water.
The evidence showed that oily bilge water was illegally dumped from the Donald directly into the ocean through the vessel’s sewage tank without being properly processed through required pollution prevention equipment. Oily bilge water typically contains oil contamination from the operation and cleaning of machinery on the vessel. These illegal discharges were not recorded in the vessel’s oil record book as required by law. The evidence also showed that Korotkiy made false and fictitious entries in the oil record book claiming transfers of oily bilge had been made from the vessel’s engine room bilge wells to the vessel’s Bilge Holding Tank when, in fact, those transfers had not been made. Finally, the evidence showed that Korotkiy conspired with others to obstruct the U.S. Coast Guard’s inspection and investigation into the mishandling of oily bilge water onboard the motor vessel Donald.
At the conclusion of the trial, the court remanded Chief Engineer Korotkiy to custody. Sentencing is scheduled for Sept. 1.
“The illegal discharge of oily bilge water at sea and the falsification and destruction of records in order to obstruct the United States’ ability to investigate those discharges are crimes we take seriously,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The Department of Justice will continue to work with our partner agencies to ensure polluters are held fully accountable.”
“Unlawful oil discharges can cause immeasurable harm to the marine environment,” said U.S. Attorney Randy Grossman for the Southern District of California. “We will continue to work closely with our agency partners to safeguard our oceans by vigorous enforcement of environmental laws. This case is a reflection of that commitment.”
“This prosecution highlights the Department of Justice and the U.S. Coast Guard’s dedication in safeguarding our oceans against those that seek to deliberately harm our natural resources,” said Captain James Spitler, Sector Commander, Coast Guard Sector San Diego. “Illegal dumping of oil and falsification of oil record books are egregious violations. This guilty verdict should serve as a reminder that the Coast Guard and our partners at the Department of Justice will work tirelessly to hold accountable those that seek to deliberately discharge oil and falsify records.”
In the same matter, Interunity pleaded guilty to a felony violation of the Act to Prevent Pollution from Ships, for failing to accurately maintain the Donald’s oil record book. Under the terms of the plea agreement and subject to court approval, Interunity will pay a total monetary penalty of $1.25 million and serve a four-year term of probation, during which any vessels operated by the company and calling on U.S. ports will be required to implement a robust Environmental Compliance Plan. The monetary penalty includes $312,500 to fund projects, activities, or initiatives intended to benefit marine and coastal natural resources located in or around the Tijuana River National Estuarine Research Reserve.
The U.S. Coast Guard Sector San Diego and the U.S. Coast Guard Investigative Service are investigating the case.
Assistant U.S. Attorney Melanie K. Pierson for the Southern District of California and Senior Trial Attorney Stephen Da Ponte of the Environment and Natural Resources Division’s Environmental Crimes Section are prosecuting the case.
Five Charged in Theft of California Benefits for Low Income FamiliesRead the Press Release
NEWS RELEASE SUMMARY – June 6, 2023
SAN DIEGO – Five men were arrested and charged in connection with the theft of tens of thousands of dollars in public-assistance benefits from low-income families that need the funds to pay for food, housing and other necessities.
The defendants were arrested by a U.S. Secret Service-led task force as part of a three-day effort to crack down on this devastating and growing fraud in which California benefits are drained from recipients’ accounts almost immediately after the funds are dispersed by the state, typically early in the month. According to federal complaints, the defendants accomplished this by placing illegal devices known as skimmers on ATMs or a retailer's card-swiping machine to copy account information from state-issued Electronic Benefit Transfer (EBT) cards used by the recipients.
Two defendants – Constantin Irimia and Devonte Linell Pipkins - appeared in federal court this morning. Irimia was ordered detained; Pipkins was ordered released on a $35,000 bond secured by real property. The other defendants - Radu Grosu, Gabriel Ionita, and Richard Calin – are scheduled to appear in court Friday for detention hearings.
Ionita and Calin are codefendants; the other defendants are charged individually. All are charged with use of unauthorized access device fraud, which criminalizes the misuse of electronic account information contained on EBT cards issued to public assistance recipients in California and across the country. Three of the men were also found to be in possession of skimming devices, pinhole cameras, and tools for inserting the skimming devices into ATMs.
One victim, a local single mother of four whose EBT account was drained in early June, said she learned that her benefits had been stolen when she went to the store later that day and found that the money she had been counting on to buy diapers and pay rent was gone.
“This kind of crime is extremely hard on people who can least afford to lose their benefits,” said U.S. Attorney Randy Grossman. “We are committed to working with all of our federal, state and local agency partners to identify perpetrators of EBT theft and relentlessly pursue justice for the victims.” Grossman thanked the prosecution team, the U.S. Secret Service and task force members for their excellent work on these cases.
“This type of fraud hurts everyday Americans who rely on government support to feed and care for their families,” said Jason Reynolds, Special Agent in Charge of the U.S. Secret Service’s San Diego Field Office. “The Secret Service is committed to protecting our nation’s financial systems from abuse, and we will continue to work alongside our law enforcement partners to ensure that those involved are held accountable.”
“The San Diego Police Department is a proud member of the USSS So-Cal Cyber Fraud Task Force and has been for over 20 years,” said San Diego Police Chief David Nisleit. “This operation targeted those taking advantage of San Diego residents who rely on public assistance for everyday needs. We are committed to this task force partnership and will continue to support any and all efforts to suppress fraud in any form throughout our city.”
“Shutting down this type of systematic fraud that steals food from the tables of families is a priority for the District Attorney’s Office,” said San Diego County District Attorney Summer Stephan. “Our office continues to be committed to providing assistance to this task force of state and federal partners who are working together to protect the most vulnerable in our community.”
According to charging documents, here’s how the fraud works:
Benefits are distributed via electronic transfers to the state-issued EBT cards. The benefits are automatically distributed to the recipient’s EBT card on a designated day of the month - typically, in California, the first five days. The user can make cash withdrawals and payments using the card. To access their benefits to purchase eligible food items, the recipient swipes the card through a point-of-sale terminal, or inserts it into an ATM, which record the card number, date, time, and amount of the transaction. The recipient then enters his/her unique Personal Identification Number (PIN) into a keypad to complete the transaction.
According to a complaint, the U.S. Secret Service has gathered evidence indicating that members of what appear to be one or more criminal enterprises are stealing California EBT account information by installing skimmers on point-of-sale terminals, often at large-volume retailers like Walmart, in communities with higher concentrations of public benefit recipients. The skimmed data is then often re-encoded onto the magnetic strips of cards that members of the conspiracy use to make unauthorized withdrawals and purchases.
These re-encoded cards are sometimes referred to as “cloned” cards. Cloned cards can be a blank white plastic card, or another debit, credit, or gift card. Cloned cards may have names or numbers embossed on the physical face of the card. A common feature of cloned cards is that the account number encoded on the card’s magnetic strip will not match the number embossed on the card’s face. To facilitate the use of the stolen EBT benefits, members of the scheme will commonly put stickers bearing the account’s PIN on the physical cards, or access devices, that are swiped at a point-of-sale terminal, along with the account balance.
As outlined in the affidavits supporting the five arrests, individuals engaged in stealing EBT benefits have targeted point-of-sale terminals at large-volume stores in National City, Sherman Heights, and El Cajon to skim and thereby steal the EBT account information of local victims.
According to the California Department of Social Services (CalDSS), almost $40 million has been stolen using compromised EBT account information since August 2022. Most of the stolen funds were obtained through unauthorized ATM withdrawals from victims’ CalWORKs benefits. CalWORKS provides cash to eligible families with one or more children in the home. Families that apply and qualify for ongoing CalWORKS assistance receive money each month to help pay for housing, food, and other necessary expenses. CalWORKS, along with CalFresh, is distributed by CalDSS through the California Advantage EBT card.
U.S. Attorney Grossman thanked the many law enforcement partners whose work and dedication made this operation a success: The U.S. Secret Service, San Diego District Attorney’s Office, San Diego Police Department, San Diego Sheriff’s Department, U.S. Department of Agriculture’s Office of Inspector General, California Department of Social Services, Homeland Security Investigations, National City Police Department, El Cajon Police Department, Los Angeles District Attorney’s Office, and the United States Attorney’s Office for the Central District of California.
If you or someone you know has had your EBT benefits stolen, San Diego County’s Department of Health & Human Services Agency requires that the theft be reported within 10 days. More information for San Diego County victims is available at: https://www.sandiegocounty.gov/content/sdc/hhsa/programs/ssp/ebt_fraud.html.
DEFENDANT Case Number Age Hometown
Constantin Irimia 23mj01955-JLB 40 Iasi City, Romania
Devonte Linell Pipkins 23mj01963-JLB 25 Ecorse, Michigan
Gabriel Ionita 23mj01973-WVG 35 Bucharest, Romania
Richard Calin 23mj01973-WVG 23 Bucharest, Romania
Radu Grosu 23mj02000-WVG 35 Rockville, Maryland
SUMMARY OF CHARGES
Use of Unauthorized Access Devices – Title 18, U.S.C., Section 1029(a)(2) (All Defendants)
Maximum penalty: Ten years in prison and $250,000 fine
Possession of Access Device-Making Equipment – Title 18, U.S.C., Section 1029(a)(4) (Irimia, Ionita, Calin)
Maximum penalty: Fifteen years in prison and $250,000 fine
AGENCY
U.S. Secret Service’s Southern California Cyber Fraud Task Force
San Diego District Attorney’s Office
San Diego Police Department
San Diego Sheriff’s Department
U.S. Department of Agriculture’s Office of Inspector General
California Department of Social Services
Homeland Security Investigations
National City Police Department
El Cajon Police Department
Los Angeles District Attorney’s Office
United States Attorney’s Office for the Central District of California
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Three-Month Campaign to Reduce Violent Crime Results in Seizure of 165 Firearms and 29 Prosecutions for Gun, Drug and Violent CrimesRead the Press Release
NEWS RELEASE SUMMARY – May 31, 2023
SAN DIEGO – Law enforcement officials today announced that a three-month campaign to reduce violent crime in San Diego County has resulted in the seizure of 165 firearms - including 82 privately-made weapons known as “ghost guns” - and the prosecution of 29 people.
The Privately Made Firearm Crime Reduction Project, which ran from February to May, was initiated to address gun violence and the proliferation of ghost guns in San Diego. The Bureau of Alcohol, Tobacco, Firearms and explosives (ATF) and the San Diego Police Department used data analytics to determine areas where there was an increase in gun violence and where crime guns were being recovered. ATF and SDPD employed an intelligence-led policing effort throughout the 90-day initiative to determine where to place resources to have the greatest impact.
This partnership used a multitude of investigative techniques including undercover operations, surveillance, scouring social media accounts, and using confidential informants and undercover federal agents. Law enforcement personnel risked their lives during nearly 88 operations to get these guns out of the hands of criminals and make communities safer. These operations included undercover operations, search warrants, and arrests warrants. Those primarily targeted were individuals involved in the illegal possession, manufacture and sale of firearms, particularly ghost guns bearing no serial numbers or identifying marks who were selling them to people prohibited from owning guns.
Authorities reported results of the operation at a news conference today, where ATF agents displayed 81 firearms items seized during the operation. Those weapons included machine guns; Glock Switches – which are machinegun conversion devices; short-barrel rifles; pistols and silencers. A substantial number of seized weapons were fully automatic. In addition to the firearms, investigators also recovered approximately 66 pounds of methamphetamine, 1.4 kilograms of powder fentanyl, 4,300 fentanyl pills, and 2.25 kilograms of cocaine.
To date, 22 defendants are charged in federal court and an additional seven in state court with various gun and drug crimes; four other state cases are pending. Federal gun charges include Dealing in Firearms without a License; Possession of a Machine Gun; Felon in Possession of a Firearm; Assault of a Federal Agent; Possession of a Firearm in Furtherance of a Violent Crime and Possession of a Firearm in Furtherance of Drug Trafficking. Drug charges include distribution of fentanyl, methamphetamine, and cocaine.
Last year alone, there were approximately 20,000 suspected ghost guns reported to ATF as having been recovered by law enforcement in criminal investigations – a ten-fold increase from 2016. Because ghost guns lack the serial numbers marked on other firearms, law enforcement has an exceedingly difficult time tracing a ghost gun found at a crime scene back to an individual purchaser.
On a local level, the San Diego Association of Governments, the regional clearinghouse for crime data, received a federal grant through the Department of Justice to enhance its tracking of crimes that involve firearms around the region. This would include the use of a firearm in violent crime and providing information regarding where these crimes are occurring, tracking calls for service related to the use of firearms, and interviewing arrestees regarding their use of firearms and ghost guns.
SANDAG has reported that ghost guns have been a significant and growing challenge around San Diego County in recent years. According to SANDAG, there was a 401 percent increase in ghost guns recovered by local law enforcement agencies in San Diego County from 2019 to 2021.
In the City of San Diego, the police department reports that about one-quarter of the guns recovered at crime scenes and during investigations during 2021 were privately manufactured and lacked serial numbers.
Preliminary numbers indicate that San Diego County law enforcement seized fewer ghost guns in 2022, but the overall rate of ghost gun seizures is still significantly higher than a few years ago.
“Our number one priority is keeping our residents safe, and gun crimes are a direct threat to that safety,” said U.S. Attorney Randy Grossman. “Every illegal gun that is removed from criminal hands makes us safer, and for that reason, this operation was a tremendous success.” Grossman thanked the prosecution team for their dedication to these cases; and especially agents and officers from ATF and San Diego Police Department who put their lives on the line during this very successful operation.
“The Privately Made Firearms Crime Reduction Project was conducted so ATF could leverage its federal resources to attack gun crime in San Diego,” said ATF Los Angeles Field Division Special Agent in Charge Christopher Bombardiere. “ATF collaborated with its our partners and successfully focused their efforts on violent individuals who were making and selling extremely powerful firearms without a license. In 90 days, ATF seized 165 firearms with almost half being privately made firearms and about a third being unregistered National Firearms Act (NFA) weapons. Those consisted of machine guns, machine gun conversion devices, short-barreled rifles, and silencers. This initiative and other ongoing investigations will continue to make our community safer.”
“The proliferation of drugs and firearms in our communities is an issue the San Diego Police Department is laser-focused on,” said San Diego Police Department Chief David Nisleit. “As one of the first in the nation to have a dedicated team for ghost gun investigations in the City of San Diego, SDPD is proud to have been a part of such a successful operation that gets drugs, firearms and the criminals that sell and manufacture them off our streets. The efforts by all involved demonstrate the seriousness and effectiveness of our collaborative work to combat this issue.”
In 2021, the San Diego Police Department established a dedicated team to address the proliferation of personally manufactured firearms, or “ghost guns,” in San Diego. One of the first of its kind in the nation, the Ghost Gun Apprehension Team has been tasked with investigating unlawful ghost gun manufacturing and sales cases. The team serves as a resource to patrol, area station detectives and specialized units when ghost guns are discovered during an arrest or investigation.
“The District Attorney’s Office is committed to continuing to work with our state and federal partners on targeted operations like this one that make our neighborhoods safer,” said San Diego County District Attorney Summer Stephan. “In addition to the illegal guns seized, thousands of fentanyl-laced pills and dozens of pounds of meth were recovered, keeping these illegal and dangerous drugs off the streets and preventing potentially fatal overdoses.”
In this operation, examples of federal cases include these allegations which are contained in charging documents:
- Christian Ferrari, a 22-year-old active-duty U.S. Marine stationed at Camp Pendleton, was charged with illegally selling ghost guns to undercover ATF agents in several transactions. These guns included 12 AR-type rifles. The agents also placed an order for an additional 10 rifles and explained they were for an associate who would be taking the firearms into Mexico. Ferrari responded, “alright, perfect,” and quoted the agents $10,000 for those 10 rifles. (23-mj-01618)
- Giovanni Diaz was convicted of robbery in 2022. In March 2023, Diaz began selling fentanyl pills and guns to an ATF undercover agent. Over the course of two weeks, Diaz sold 1,400 fentanyl pills and three ghost guns to the agent. (23-cr-000872)
- Jonathan Manuel Flores was charged with assaulting a federal officer with a Glock 9 mm pistol and brandishing a firearm in furtherance of a crime of violence. According to a federal complaint, on February 17, 2023, ATF agents conducted an undercover operation in San Diego to purchase a machine gun, specifically a Glock pistol with a full auto conversion device, commonly known as a “Glock Switch,” for $2,400. During the undercover operation the defendant insisted that the gun deal take place in their car. The undercover agent got into the back seat of the parked car as requested. As the undercover agent finished counting the cash, the defendant allegedly pulled back the slide on his pistol to make it ready to shoot and pushed the muzzle into the undercover agent’s ribcage. He then said, “Get the f---- out of the car dog before I smoke you” while grabbing the cash from the agent’s hand. The agent quickly exited the vehicle and the sedan took off. (23-cr-0512)
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
San Diego Restaurant Owners Charged with COVID-Relief Fraud and Money LaunderingRead the Press Release
A federal grand jury in San Diego returned an indictment on May 19 charging a California man and woman with conspiracy to commit wire fraud, wire fraud, and money laundering.
According to the indictment, Leronce Suel and Ravae Smith owned Rockstar Dough LLC and Chicken Feed LLC, both of which operated a series of restaurants in the San Diego area. From March 2020 to June 2022 Suel and Smith allegedly conspired to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return (From 1120S) filed with the IRS in order to qualify for the COVID-related Paycheck Protection Program and Restaurant Revitalization Funding loans. Suel and Smith also allegedly made materially false certifications on loan applications regarding the use of the money. The indictment charges that Suel and Smith made substantial cash withdrawals from their business bank accounts to launder the fraudulently obtained funds. As part of the conspiracy, Suel and Smith allegedly concealed more than $2.4 million in cash at their residence.
Suel and Smith made their initial court appearance yesterday before U.S. Magistrate Judge William V. Gallo of the U.S. District Court for the Southern District of California. If convicted, they face a maximum penalty of 30 years in prison for wire fraud and conspiracy to commit wire fraud and 10 years in prison for money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Randy S. Grossman for the Southern District of California made the announcement.
“During an unprecedented public health emergency, the United States provided these loan programs to deliver economic relief to Americans,” said U.S. Attorney Randy Grossman for the Southern District of California. “This office will investigate and prosecute those who exploited the global pandemic to unjustly enrich themselves. We encourage anyone with information regarding individuals who have engaged in COVID-relief fraud to come forward.” Grossman thanked the prosecution team and the investigative agency for their excellent work on this case.
“The CARES act was passed to aid those in need and provide much needed relief during the Covid-19 pandemic. Unfortunately, there are individuals and organizations who took advantage and targeted these programs to steal funds,” said Special Agent in Charge Tyler Hatcher of the Los Angeles Field Office. “Submitting false returns in support of a fraudulent loan application is a crime. IRS-CI is committed to aggressively investigating these crimes and bringing those to justice who stole funds and targeted relief programs during the pandemic.”
The IRS-Criminal Investigation are investigating the case.
Trial Attorney Julia Rugg of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Beeler of the Southern District of California are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Owners of San Diego Restaurants Charged with COVID-Relief Fraud and Money LaunderingRead the Press Release
NEWS RELEASE SUMMARY — May 23, 2023
SAN DIEGO—A federal grand jury has returned an indictment charging San Diego restaurant owners with fraud and money laundering in connection with an alleged scheme to falsify applications for pandemic relief funds.
According to the indictment, Leronce Suel and Ravae Smith owned Rockstar Dough LLC and Chicken Feed LLC, both of which operated a series of restaurants in the San Diego area. From March 2020 to June 2022, Suel and Smith allegedly conspired to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return (Form 1120S) filed with the IRS in order to qualify for the COVID-related Paycheck Protection Program and Restaurant Revitalization Funding loans.
Suel and Smith also allegedly made materially false certifications on loan applications regarding the use of the money. The indictment charges that Suel and Smith made substantial cash withdrawals from their business bank accounts to launder the fraudulently obtained funds. As part of the conspiracy, Suel and Smith allegedly concealed more than $2.4 million in cash at their residence.
Suel and Smith made their initial court appearance today before U.S. Magistrate Judge William V. Gallo.
“During an unprecedented public health emergency, the United States provided these loan programs to deliver economic relief to Americans,” said U.S. Attorney Randy Grossman. “This office will investigate and prosecute those who exploited the global pandemic to unjustly enrich themselves.” Grossman thanked the prosecution team and the IRS for their excellent work on this case.
“The CARES Act was passed to aid those in need and provide much needed relief during the Covid-19 pandemic,” said Special Agent in Charge Tyler Hatcher of the Los Angeles Field Office. “Unfortunately, there are individuals and organizations who took advantage and targeted these programs to steal funds. Submitting false returns in support of a fraudulent loan application is a crime. IRS-CI is committed to aggressively investigating these crimes and bringing those to justice who stole funds and targeted relief programs during the pandemic.”
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020 and is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The case is being prosecuted by Assistant U. S. Attorney Christopher Beeler and Trial Attorney Julia M. Rugg from the Department of Justice’s Tax Division.
DEFENDANT Case Number 23-CR-0965-RBM
Leronce Suel San Diego Age: 46
RaVae Smith San Diego Age: 45
SUMMARY OF CHARGES
Conspiracy to Commit Wire Fraud—Title 18, U.S.C., Section 1349
Maximum penalty: Thirty years in prison, $1 million fine; forfeiture and restitution
Wire Fraud—Title 18, U.S.C., Section 1343
Maximum penalty: Thirty years in prison, $1 million fine; forfeiture and restitution
Money Laundering—Title 18, U.S.C. Section 1957
Maximum penalty: Ten years in prison, $1 million fine; forfeiture and restitution
AGENCY
IRS Criminal Investigation
*The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Fentanyl Enforcement Surge Results in Massive Increase in Seizures and ArrestsRead the Press Release
NEWS RELEASE SUMMARY – May 23, 2023
SAN DIEGO – Law enforcement leaders today announced that an unprecedented two-month fentanyl-enforcement surge along the southwest border has resulted in the seizure of about 4,721 pounds of fentanyl, 1,700 pounds of fentanyl precursors and more than 200 arrests of alleged smugglers, traffickers and dealers within the Southern and Central Districts of California.
The surge, labeled Operation Blue Lotus, was launched by the Department of Homeland Security along the Southwest border, including the Southern and Central districts of California and the District of Arizona, from March 13 to May 10, 2023.
According to DHS, in San Diego County alone, the two-month surge has resulted in a 300 percent increase in fentanyl seizures versus the same period last year – from 732 pounds in 2022 to 2,931 pounds in 2023. During the DHS surge, the U.S. Attorney’s Office saw a 30 percent increase in defendants prosecuted for fentanyl-related crimes in the Southern District of California compared to the same time period in 2022. And these prosecutions follow a record-setting fiscal year 2022, when we prosecuted 317 defendants for fentanyl offenses (more than an 1,800 percent increase compared to FY2017).
The operation involved the deployment of an extra 85 Homeland Security Investigations special agents and 35 Customs and Border Protection officers; many more targeted inspections at the border; the use of advanced technology at locations along the border; and intensified efforts to gather intelligence to build criminal cases against transnational criminal organizations and U.S.-based distribution networks.
“We are an epicenter for fentanyl trafficking into the United States, and we know the immense responsibility that we bear to address this crisis,” said U.S Attorney Randy Grossman. “We are answering that call to action with hard work, a purpose and a plan. Every milligram of fentanyl that we seize, and every smuggler, trafficker and dealer we bring to justice, means less fatal doses on the streets of San Diego and beyond.”
“As demonstrated by the results under Operation Blue Lotus, Homeland Security Investigations (HSI), our DHS partners, law enforcement agencies and departments throughout Southern California are bringing the full weight of combined federal and local law enforcement resources to combat this fentanyl crisis,” said Chad Plantz, special agent in charge, HSI San Diego. “We are not only seeking to seize the Mexican cartel’s deadly drugs, but to remove their members and their associates from our communities and deny their opportunities to continue their deadly criminal enterprises.”
“Operation Blue Lotus represents the kind of exceptional law enforcement and prosecution innovation and collaboration that can effectively impact deadly fentanyl distribution and save lives,” said San Diego County District Attorney Summer Stephan. “I want to recognize the leadership of the U.S. Attorney and other key partners in bringing this operation forward. This operation yielded an extraordinary outcome that is having a direct impact on public safety. The prosecutions that resulted from this operation are an example of our ongoing commitment to holding dealers and traffickers accountable.”
“This operation was truly an outstanding demonstration of our partnership approach here in San Diego in working together to combat the importation of fentanyl,” said Sidney K. Aki, Director of Field Operations for San Diego Field Office of Customs and Border Protection. “CBP alongside our partner agencies are committed and will continue to protect our communities from this devasting.”
“In just a few months, Operation Blue Lotus was successful in removing millions of potentially deadly doses of fentanyl off the streets,” said DEA Special Agent in Charge Shelly Howe. “But our work is not done. Fentanyl and meth continue to find their way onto the streets of San Diego, fueling addiction and driving deaths higher. Combined with our federal, state, and local partners we will continue to hold accountable those who traffic drugs and threaten the safety of our community.”
“I'm extremely proud of the work our investigators have done to interdict and interrupt the cross-border criminal organizations who continue to traffic deadly drugs into our communities and across the nation. The long hours and collaboration across federal, state, local, and tribal law enforcement organizations is a testament to the dedication and commitment all of us feel to keep our communities safe,” said San Diego County Sheriff Kelly Martinez.
Some examples of the Blue Lotus Operation results include:
- seized fentanyl that also tested positive for xylazine. The White House has designated the combination of xylazine and fentanyl as an emerging threat to the United States based on xylazine’s growing role in overdose deaths.
- Officials seized a quantity of fentanyl precursor drugs that could produce more than 200 million fentanyl pills.
- A vehicle inspection at the border resulted in the discovery of 116 packages containing about 163 pounds of fentanyl concealed in the rear bumper, quarter panels, doors, seats, center console, gas tank, and firewall of the vehicle. The driver was arrested and charged.
In addition to the surge associated with Operation Blue Lotus, law enforcement officials here 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. These impactful cases are the result of a close collaboration among the U.S. Attorney’s Office and several multi-jurisdictional task forces focused on combatting the fentanyl crisis, including the HSI-led Fentanyl Abatement and Suppression Team (FAST), a joint federal, state and local law enforcement task force that targets fentanyl distribution networks in the Southern District of California. FAST’s mission compliments the work of the DEA’s Overdose Response Team (formerly Team 10) which investigates fentanyl overdoses in the City of San Diego.
Arizona Man Sentenced to 108 Months for Transporting Victim for ProstitutionRead the Press Release
NEWS RELEASE SUMMARY – May 12, 2023
SAN DIEGO – Ashton Jordan was sentenced in federal court today to 108 months in prison for transporting a woman from Nevada to Arizona to California in order to cause her to engage in prostitution.
Jordan was arrested in Arizona in November 2021 on sex trafficking charges following his indictment by a federal grand jury. He first came to the attention of law enforcement in July 2021 when the victim escaped from Jordan at a hotel in downtown San Diego. She reported at the time that Jordan had used violence against her to cause her to stay with him and prostitute herself for his financial benefit. Jordan was on probation at the time of his offense.
Jordan pleaded guilty in November 2022. In his plea agreement, Jordan admitted that he brought the victim to San Diego with the intent that she would be engaging in prostitution. During the time that Jordan was with the victim, he further admitted that he was physically violent with her on multiple occasions in order to cause her to engage in prostitution.
“I applaud the bravery of this victim,” said U.S. Attorney Randy Grossman. “The defendant’s reprehensible actions have forever impacted her life, and for that he will pay a high price. We will never relent in our pursuit of justice for victims.” Grossman thanked the prosecution team and the San Diego Human Trafficking Task Force for their excellent work on this case.
“Human trafficking and sexual exploitation destroy lives,” said California Attorney General Rob Bonta. “Today’s sentencing is another example of our commitment to hold perpetrators accountable and help survivors get a fresh start. I’m thankful to all of our partners on the San Diego Human Trafficking Task Force for their collaboration and I’m proud of our office’s work to help uplift vulnerable Californians. When we work together, we get results. At the California Department of Justice, we’re always ready to answer the call when it comes to standing up for public safety.”
“Jordan preyed on, manipulated, and exploited his victim for his own financial gain—he showed zero regard for human life,” said Acting Special Agent in Charge Houtan Moshrefi. “Sex trafficking happens every day, and it often occurs in plain sight. When you see something that doesn’t feel right, report it to law enforcement. FBI San Diego will continue to collaborate with our partners at every level to hold accountable all who believe a living being can be reduced to a dollar amount.”
Jordan has been detained in custody since his arrest in November 2021.
At the sentencing hearing today, U.S. District Court Judge Dana M. Sabraw not only imposed the 108-month prison sentence, but also ordered Jordan to serve 10 years of supervised release following his release from custody.
DEFENDANTS Case Number 22cr2649-DMS
Ashton Tylon Amir Jordan Age: 28 Phoenix, AZ
SUMMARY OF CHARGES
Transportation for Purposes of Prostitution – Title 18, U.S.C., Section 2421
Maximum penalty: Ten years in prison and $250,000 fine
AGENCY
San Diego Human Trafficking Task Force, which consists of:
Federal Bureau of Investigation
California Department of Justice
California Department of Corrections & Rehabilitation – Parole
California Highway Patrol
ICE/Homeland Security Investigations
National City Police Department
San Diego City Attorney’s Office
San Diego County District Attorney’s Office
San Diego County Probation Department
San Diego County Sheriff’s Department
San Diego Police Department
United States Attorney’s Office, Southern District of California
U.S. Border Patrol Agent Charged with Attempting to Distribute Methamphetamine and Receiving BribesRead the Press Release
NEWS RELEASE SUMMARY—May 11, 2023
SAN DIEGO—U.S. Border Patrol Agent Hector Hernandez made his initial appearance in federal court today on charges that he agreed to accept $25,000 in bribes to distribute methamphetamine and to open a restricted border gate to allow unauthorized migrants to illegally enter the United States.
The complaint alleges that on May 8, 2023, Hernandez opened a restricted border gate while on duty as part of an agreement to allow an unauthorized migrant to enter the United States from Mexico in exchange for a $5,000 cash payment to Hernandez. Hernandez was unaware that he’d made that agreement with an undercover federal agent.
Then, on May 9, 2023, in exchange for another cash payment, Hernandez arranged to pick up a duffle bag loaded with methamphetamine from a storm drain near the border fence while on duty. According to the complaint, Hernandez put the bag into his Border Patrol vehicle and drove it to his house in Chula Vista, where he stored it for the remainder of his shift.
In the morning on May 10, 2023, Hernandez retrieved the bag and met with the undercover agent intending to deliver the drugs in return for an expected $20,000 cash payment, the complaint said. At that meeting, after delivering the drugs, Hernandez was arrested.
A detention hearing is scheduled for May 16 at 1:30 p.m. before U.S. Magistrate Judge Bernard G. Skomal.
DEFENDANT Case Number 23mj1663-BGS
Hector Hernandez Age: 55 Chula Vista, CA
SUMMARY OF CHARGES
Attempted Distribution of Methamphetamine – 21 U.S.C., Sections 841(a)(1) and 846
Maximum penalty: Life in prison with a 10-year mandatory minimum
Receiving Bribe by Public Official – 18 U.S.C., Section 201(b)(2)
Maximum penalty: Fifteen years in prison
AGENCIES
Department of Homeland Security, Office of the Inspector General
Drug Enforcement Administration
Federal Bureau of Investigation, Border Corruption Task Force
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Man Charged with COVID-Relief Fraud and Money LaunderingRead the Press Release
NEWS RELEASE SUMMARY – May 4, 2023
SAN DIEGO – Nasser Salman, a former San Diego resident living in Morocco, was arraigned in federal court today on charges that he fraudulently obtained more than $400,000 in COVID-relief loan funds on behalf of three companies.
According to the indictment, Salman submitted fraudulent applications to the federal Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) in connection with Lemon Grove Deli and Grill, Inc., Al Laith Trading and Construction Consulting Inc. and Alliance Security Consulting Services, Inc.
The indictment said that between April and August 2020, Salman successfully obtained five separate PPP and EIDL loans totaling $401,000 using applications that included false representations about the number of employees, the average monthly payroll, and the gross receipts earned by these purported businesses. Salman also submitted fictitious documents in support of the applications
According to the indictment, when Salman applied for the loans, he acknowledged the funds must be used to retain workers and maintain payroll, or to make mortgage interest payments, lease payments and utility payments. Instead, as alleged in the indictment, Salman engaged in a series of financial transactions, including international wire transfers to a Morocco-based bank account, that were designed to conceal and disguise the fact that the sources for the funds were the fraudulently obtained PPP and EIDL loans.
“These loan programs were designed to render economic relief to Americans during an unprecedented public health emergency,” said U.S. Attorney Randy Grossman. “This office is dedicated to investigating and prosecuting those who exploited the global pandemic to enrich themselves. We encourage anyone with information regarding individuals who have engaged in COVID-relief fraud to come forward.” Grossman thanked the prosecution team and the law enforcement agencies for their excellent work on this case.
“Covid relief fraud not only waste taxpayers’ dollars; it undermines the public trust of government programs,” said Chad Plantz, special agent in charge, HSI San Diego. “HSI will continue to work with our law enforcement partners to investigate and bring to justice fraudsters who diverted financial relief away from Americans at a time when they need it the most.”
A detention hearing is scheduled for May 9, 2023, at 9:30 a.m. before U.S. Magistrate Judge Barbara L. Major.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020 and is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
DEFENDANTS Case Number 23CR0821-LL
Nasser Salman Age: 60 United States
SUMMARY OF CHARGES
Counts 1-5- Wire Fraud
Title 18, U.S.C., Section 1343
Maximum Penalty: Thirty years in prison and $1,000,000 fine
Counts 6-11 – Laundering of Monetary Instruments
Title 18, U.S.C., Sections 1956(a)(1)(a)(B)(i)Maximum Penalty: Twenty years in prison; a fine of $500,000 or twice the amount of the monetary instruments involved, whichever is greater
AGENCIES
Homeland Security Investigations (HSI)
Small Business Administration (SBA)
The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Four Charged in Multi-Million-Dollar Childcare Benefits Fraud Ring that Bilked California Welfare and Benefits Program for YearsRead the Press Release
NEWS RELEASE SUMMARY – May 2, 2023
SAN DIEGO – Four San Diego residents were charged in federal court today with participating in a childcare-benefits fraud scheme that bilked a California welfare and benefits program of millions of dollars.
Mohamed Muriidi Mohamed, Amina Abdirazak Omar, Osob Abdirazak Omar and Omar Omar were arraigned this afternoon before U.S. Magistrate Judge Barbara L. Major.
According to the indictment, the Department of Health and Human Services (HHS) funds a program known as “Alternative Payment Program/Stage 2 Childcare.” This childcare benefits program allows eligible parents to select a licensed childcare provider to provide childcare services that best fit a family’s needs. In San Diego, this program is administered by two contractors: Child Development Associates (CDA) and the Young Men’s Christian Association (YMCA). CDA and YMCA disburse the funding from HHS and the state of California directly to the designated childcare providers. In administering the program, CDA and YMCA require verification forms to be completed by the parent, and the employer and/or school.
The indictment alleges that the defendants fraudulently caused CDA and YMCA to pay out millions in childcare benefit program funds by falsely verifying that parents were working at or attending school at the UMI Learning Center, a vocational and language school located on University Avenue, although the parents were not actually participating in classes or employment during the days, and for the hours, claimed. In turn, childcare providers submitted false daily childcare attendance forms claiming that childcare was provided for days and hours when the parents were supposedly at UMI Learning Center for work or school, although no childcare was actually provided. In exchange for these false verification forms, parents were expected to pay $200 to UMI Learning Center, and the childcare providers were expected to split the childcare benefit program funds they received, 50/50, with the parents. The indictment alleges that the defendants’ scheme caused CDA and YMCA to pay out over $3.7 million dollars in childcare benefit program funds.
“Childcare benefit programs are designed to help parents who need the assistance of quality childcare service,” said U.S. Attorney Randy Grossman. “Fraud takes money away from the very communities those programs are intended to serve.” Grossman thanked the prosecution team and Homeland Security Investigations for their hard work on this case.
“It is unacceptable for individuals to exploit and defraud programs designed to provide basic childcare benefits for hard working families,” said Chad Plantz, special agent in charge, HSI San Diego. “This investigation serves as an example of how dedicated we are to working in coordination with our law enforcement partners to support and affect a positive impact on the local community.”
DEFENDANTS Case Number 23CR0552-RBM
Mohamed Muriidi Mohamed, Spring Valley Age: 46
Amina Abdirazak Omar, Spring Valley Age: 40
Osob Abdirazak Omar, San Diego Age: 32
Omar Omar, San Diego Age: 22
SUMMARY OF CHARGES
Wire Fraud and Theft Conspiracy - Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and fine of the greater of $250,000, or twice the pecuniary gain or loss
Wire Fraud– Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison and fine of the greater of $250,000, or twice the pecuniary gain or loss
Theft of Government Funds – Title 18, U.S.C., Section 641
Maximum penalty: Ten years in prison and fine of the greater of $250,000, or twice the pecuniary gain or loss
AGENCIES
U.S. Department of Homeland Security, Homeland Security Investigations
U.S. Department of Health and Human Services, Office of the Inspector General
U.S. Department of Housing and Urban Development, Office of the 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.
Bank Robber Sentenced to More Than Nine Years; Robbed Same Credit Union TwiceRead the Press Release
NEWS RELEASE SUMMARY – April 25, 2023
SAN DIEGO – Akil Saeed Daniels was sentenced in federal court to 110 months in prison for robbing credit unions in Poway and Chula Vista in 2022 - months after he was released from a long stint in prison for robbing the same Chula Vista credit union more than a decade earlier.
That twice-robbed credit union – California Coast on H Street in Chula Vista – was one of five financial institutions Daniels robbed in 2011. For that he was sentenced to more than 13 years in prison. Following his release in June 2022, he then robbed the same Chula Vista location of California Coast Credit Union only three months later, on September 27, 2022. He robbed the Mission Federal Credit Union the next day.
During the most recent robbery of California Coast, Daniels used a demand note. Coincidentally, the teller he robbed at that location in 2011 still works for the credit union. That teller was standing beside another teller when Daniels robbed that location again 11 years later.
When Daniels robbed the Mission Federal Credit Union in Poway, he used a demand note that read, “Hand me all the money, don’t make me get violent” or “Hand me all the money, I don’t want to get violent.”
Daniels was arrested on October 3, 2022, and was indicted for those robberies in November 2022. He was convicted by a federal jury following a two-day trial in January 2023.
“Employees who have been through a robbery are impacted for the rest of their lives,” said U.S. Attorney Randy Grossman. “This defendant made the decision to terrorize the same people not once, but twice. And now, not once, but twice, he will pay for his crime with a lengthy prison term.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.
“This is not the first time that Daniels has had to face the consequences for this type of crime,” said Acting Special Agent in Charge Houtan Moshrefi. “May this 110-month sentence be a reminder of the severity of his actions. Violent crimes such as these in our community are intolerable. The FBI and our law enforcement partners are committed to holding those responsible who choose to rob banks as a means of income.”
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 San Diego Violent Crimes Task Force, the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.
This case is also 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.
DEFENDANT Case Number 22cr2505-LL
Akil Saeed Daniels Age: 41 San Diego, CA
SUMMARY OF CHARGES
Bank Robbery – Title 18, U.S.C., Section 2113(a)
Maximum penalty: Twenty years in prison
Bank Robbery – Title 18, U.S.C., Section 2113(a)
Maximum penalty: Twenty years in prison
AGENCY
Federal Bureau of Investigation – Violent Crimes Task Force
Drug Dealer Sentenced to 10 Years in Prison for Selling the Fentanyl that Resulted in Death of Young WomanRead the Press Release
NEWS RELEASE SUMMARY – April 25, 2023
SAN DIEGO – Jonathan Miguel Lopez was sentenced in federal court to 120 months in prison for selling the fentanyl pills that resulted in the fatal overdose of 23-year-old Sherie Gil on September 30, 2021.
Lopez pleaded guilty in October 2022. According to the government’s sentencing memo, on the morning of September 30, 2021, law enforcement officials and paramedics responded to a 911 call from a commercial office building in San Diego. Law enforcement found Gil deceased in a bathroom along with drug paraphernalia, Gil’s cell phone, and “blues,” or counterfeit oxycodone pills containing fentanyl. The Medical Examiner’s Office later determined that Gil had died as the result of the “toxic effects of fentanyl, cocaine, and alprazolam.”
During a search of Gil’s cell phone, agents discovered that Gil had exchanged text messages with another phone number asking if she could “pick up” blues in the days leading up to Gil’s death. During the investigation that followed, law enforcement discovered that the other phone number was registered to Lopez’s co-defendant, Jamie Ashley Koryn. The text messages also indicated that, on September 29, 2021, Gil again messaged Koryn requesting blues; Koryn sent Gil. her address and Gil then responded that she was seven minutes away.
On October 8, 2021, during the execution of a search warrant at the residence Lopez shared with his co-defendant, Koryn, law enforcement located and arrested Koryn and Lopez and seized their cellular phones. Agents found text messages on Lopez’s and Koryn’s phones showing that they entered into an agreement to distribute fentanyl. Lopez’s plea agreement described some of the text messages in which Lopez was negotiated the price of the fentanyl he would charge their customers. During that search agents also found a loaded pistol under Lopez’s mattress. In his plea agreement Lopez admitted that he used that pistol to protect the drugs that he and Koryn stored at their residence.
Per the plea agreement, Lopez and the government stipulated that the Sentencing Guidelines for distribution of a controlled substance resulting in death and/or serious bodily injury would apply.
“This young woman’s death serves as another terrible reminder of the ongoing devastation inflicted by counterfeit fentanyl pills,” said U.S. Attorney Randy Grossman. “This office remains dedicated to pursuing individuals who seek to profit from the deadly fentanyl market. Those who cause such tragic loss of life will be held accountable.” Grossman thanked the prosecution team and investigating agencies who diligently pursued this case.
“San Diego has lost another life to the devastating effects of fentanyl,” said DEA Special Agent in Charge Shelly Howe. “The DEA and its partners will continue to pursue justice for those who fall victim to this poison.”
“Faced with a decade in federal prison, Lopez will no longer be able to contribute to the opioid epidemic terrorizing not only San Diego, but our entire country,” said Acting Special Agent in Charge Houtan Moshrefi of the FBI’s San Diego Field Office. “It is horrible that Lopez’s actions destroyed one life, but I am confident that his removal from society will save many more. Today’s sentence should put drug dealers on notice that the FBI and our law enforcement partners will continue to identify, disrupt, and remove anyone who peddles this poison from our communities.”
“Homeland Security Investigations (HSI) is dedicated to working with our law enforcement partners to prioritize our efforts and resources toward combatting this fentanyl crisis and will continue to relentlessly pursue those responsible for the smuggling and distribution of this deadly drug within our communities,” said Special Agent in Charge, Chad Plantz, HSI San Diego. “Today’s sentencing demonstrates that those who deliberately engage in these dangerous activities will be held accountable.”
Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation into Gil’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. In 2018, the Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County.
For those who suffer from addiction, please know there is help. Call the Crisis line at 888-724-7240; it’s always open.
DEFENDANT Case Number 22-CR-0214-LL
Jonathan Miguel Lopez Age: 35 San Diego
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Life in Prison
AGENCY
Drug Enforcement Administration
Federal Bureau of Investigation
San Diego Police Department
Homeland Security Investigations
California Department of Health Care Services
San Diego County District Attorney’s Office
Bookkeeper Sentenced to 29 Months in PrisonRead the Press Release
NEWS RELEASE SUMMARY – April 24, 2023
SAN DIEGO – Former bookkeeper Susan Ann Sears was sentenced in federal court today to 29 months in prison for embezzling more than $765,000 from Shapery Enterprises and nearly $165,000 from Hope Campbell Realty Inc.
Sears was also ordered to pay $839,419.22 in restitution—$674,673.93 to American Express and $164,745.29 to Hope Campbell Realty.
Sears served as the bookkeeper for Shapery Enterprises from July 2018 to November 2019. As the bookkeeper, Sears had access to the business’s bank accounts, American Express credit card, and accounting programs. In her plea agreement, Sears admitted that she opened a personal American Express credit card in the name of a family member, obtained American Express cards for herself and family members, and used Shapery Enterprises’ bank account to pay the personal American Express account. Sears made the payments appear to be legitimate business expenses by entering “S. Sharpery,” which is one letter off from the CEO’s last name of Shapery.
Sears also issued herself unauthorized checks and falsified entries in the business’ accounting programs. In total, Sears stole more than $765,000 from Shapery Enterprises. Since American Express reimbursed Shapery Enterprises $674,673.93, Sears admitted that the loss to American Express was $674,673.93.
After Sears was fired from Shapery Enterprises in November 2019 and the government notified her that she was under investigation for wire fraud, Sears was employed by Hope Campbell Realty as its bookkeeper from February 2021 to November 2021. Sears again abused her position of trust and issued herself and her family members unauthorized checks. Sears also falsified entries in Hope Campbell Realty’s accounting programs to make it appear that the checks were for legitimate business purposes. Between March 2021 and November 2021, Sears stole nearly $165,000 from Hope Campbell Realty.
“Sears took advantage of her employers’ trust and treated their bank accounts as her personal piggy bank, stealing hundreds of thousands of dollars,” said U.S. Attorney Randy S. Grossman. “This defendant inflicted substantial damage to two San Diego businesses and has been held to account for her conduct.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.
“Susan Ann Sears went to great lengths to defraud not one, but two of her employers. Even after learning that she was under investigation, she brazenly continued to abuse her position of trust to feed her own greed,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “Embezzlement will always come to light—the short-term benefits are never worth the repercussions. The FBI will continue to identify and investigate those who choose to line their own pockets at the expense of others.”
DEFENDANTS Case Number 21cr3189-GPC
Susan Ann Sears Age: 64 San Diego, CA
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison and $250,000 fine, or twice the gain/loss, whichever is greater
AGENCY
Federal Bureau of Investigation
Former Marine Who Led Double Life as Drug Trafficker Sentenced to 12 Years; Defendant Contacted Mexican Songwriter to Glorify him in Narco-BalladRead the Press Release
NEWS RELEASE SUMMARY – April 21, 2023
SAN DIEGO – Roberto Salazar II, who until his arrest was an active-duty U.S. Marine stationed at Marine Corps Air Station Miramar, was sentenced in federal court to 144 months in prison for his role in a years-long drug importation and distribution conspiracy that involved dozens of smuggling events.
Salazar pleaded guilty in October 2022 to conspiring to distribute controlled substances, including heroin, methamphetamine, cocaine and fentanyl, and to importing fentanyl into the United States from Mexico. According to his plea agreement, Salazar recruited, managed, and paid multiple drug couriers—both before he joined the Marine Corps and while he was on active duty. He also personally distributed controlled substances within the United States.
According to court documents, Salazar and his co-conspirators favored the use of specific model cars with a unique engine compartment they used to conceal and import drugs. Salazar helped to obtain these specific cars and deliver them to a business in Mexico, where couriers would be directed to retrieve the cars with drugs loaded inside them and drive them across the border.
By the time Salazar and his codefendants were arrested, according to prosecutors, Salazar had become so involved in drug trafficking that he was commissioning a Mexican songwriter to write a drug ballad known as a “narcocorrido” about him. Information gathered from Salazar’s seized cell phones showed he was in communication with a Mexican songwriter about writing music and lyrics celebrating his role in drug trafficking, including references to his military service.
In one line that Salazar suggested to the songwriter, he boasted: “I wanted to study and became a soldier, but I liked the fast life better.”
Among the individuals Salazar personally recruited were two former service members who had recently been discharged from the Marine Corps at the time Salazar recruited them. Salazar directed these individuals’ activities and paid them $2,000 each time they successfully imported drugs. Several of the drug couriers who worked for Salazar or his co-conspirators, including one of the former Marines recruited by Salazar, were caught at the border by Customs and Border Protection officers and charged with importing controlled substances. In another failed attempt to deliver drugs in Las Vegas, one of Salazar’s co-conspirators abandoned a kilogram of heroin on a grocery store shelf and fled from law enforcement.
“This case involved a Marine who was supposed to protect and defend our country, but instead brought great harm to Americans by trafficking fentanyl and other dangerous drugs,” said U.S. Attorney Randy Grossman. “He also betrayed his solemn oath by recruiting other Marines to do the same. Through this case, the defendant has been held to account for his crimes and we have dismantled yet another link in the supply chain for the deadly narcotics that are indiscriminately killing members of our community.” Grossman thanked the prosecution team, Homeland Security Investigations, Customs and Border Protection and the Naval Criminal Investigative Service for their outstanding work on this case.
“While disheartened by an individual who hid in the ranks of our prestigious U.S. military, this should serve as a warning to any would-be narcotics smugglers, that you cannot hide your nefarious crimes and you will be held accountable,” said Chad Plantz, Special Agent in Charge of HSI San Diego. “Today’s sentencing is a result of ongoing HSI investigation, in collaboration with our law enforcement partners, to disrupt and dismantle transnational criminal organizations and their importation of deadly narcotics into the U.S.”
“Mr. Salazar betrayed his oath to the Marine Corps and posed a significant threat to our national security by participating in an illegal operation to smuggle fentanyl into the United States,” said Special Agent in Charge Todd Battaglia of the NCIS Marine Corps West Field Office. “NCIS and our partners remain committed to fully investigating all allegations of criminality within the ranks that threaten military readiness and jeopardize the safety of our community members.”
"Through his actions Mr. Salazar violated his duty as a Marine, dishonored the public's trust and promoted conditions that endangered the safety of the people,” said Sidney K. Aki, Director of Field Operations for San Diego Field Office. “National security efforts, which include narcotics interdictions, must remain our primary focus. Today’s sentencing is a clear indication of the strong partnership that continues in San Diego between federal agencies.”
DEFENDANT Case Number 22-cr-216-JLS
Roberto Salazar II Age: 26 San Diego, CA 144 months
Jose Ernesto Lopez (2) Age: 24 Bell Gardens, CA 70 months
Juan Carlos Zepeda-Santos (3) Age: 40 Lynwood, CA 33 months
SUMMARY OF CHARGES
Conspiracy to Distribute Heroin, Methamphetamine, Cocaine, and Fentanyl – Title 21, United States Code, Sections 841 and 846
Mandatory Minimum: Ten years in prison
Maximum penalties: Life in prison and $10 million fine
Importation of Fentanyl – Title 21, United States Code, Sections 952 and 960
Mandatory Minimum: Ten years in prison
Maximum penalties: Life in prison and $10 million fine
AGENCY
Homeland Security Investigations
U.S. Customs and Border Protection
Naval Criminal Investigative Service
Justice Department Announces Charges Against Sinaloa Cartel’s Global OperationRead the Press Release
The Justice Department today announced charges unsealed in the Southern District of New York, Northern District of Illinois, and District of Columbia, against several leaders of the Sinaloa Cartel, a transnational drug trafficking organization based in Sinaloa, Mexico, and its facilitators across the globe.
“Today, the Justice Department is announcing significant enforcement actions against the largest, most violent, and most prolific fentanyl trafficking operation in the world – run by the Sinaloa Cartel, and fueled by Chinese precursor chemical and pharmaceutical companies,” said Attorney General Merrick B. Garland. “Families and communities across our country are being devastated by the fentanyl epidemic. Today’s actions demonstrate the comprehensive approach the Justice Department is taking to disrupt fentanyl trafficking and save American lives.”
“The fentanyl crisis in America – fueled in large part by the Sinaloa cartel – threatens our public health, our public safety, and our national security,” said Deputy Attorney General Lisa O. Monaco. “Today’s indictments target every element of the Sinaloa Cartel's trafficking network and reflect the Justice Department's commitment to attacking every aspect of this threat: from the chemical companies in China that spawn fentanyl precursors, to the illicit labs that produce the poison, to the networks and money launderers and murderers that facilitate its distribution. Just as we have gone on offense against terrorists and cyber criminals around the globe, the Department is now waging a relentless campaign to disrupt the production and trafficking of fentanyl – before it can reach its victims.”
“Today’s indictments send a clear message to the Chapitos, the Sinaloa Cartel, and criminal drug networks around the world that the DEA will stop at nothing to protect the national security of the United States and the safety and health of the American people,” said DEA Administrator Anne Milgram. “The Chapitos pioneered the manufacture and trafficking of fentanyl – the deadliest drug threat our country has ever faced – flooded it into the United States for the past eight years and killed hundreds of thousands of Americans. Over the last year and a half, the DEA proactively infiltrated the Sinaloa Cartel and the Chapitos network, obtained unprecedented access to the organization’s highest levels, and followed them across the world. I am grateful to the men and women of the DEA for their exceptional work on this case, which is the beginning of our work as ‘One DEA’ to dismantle every part of the criminal cartels that are killing Americans at record rates.”
“Far too many Americans have become victims in the national fentanyl crisis. These cartels have shown us they will stop at nothing to manufacture, traffic, and push these dangerous drugs to every corner of our country,” said FBI Director Christopher Wray. “Today’s indictments show that the FBI and our law enforcement partners will never tire in our pursuit not only to shut down their criminal enterprises, but also to go after individuals in their network. I want to thank the FBI team continuing to work on these cases everyday as we join with our law enforcement partners to tackle this national epidemic.”
“This indictment is another example of how this administration is taking on the cartels and their transnational criminal networks, and sending a clear message that we are going to hold them accountable,” said Secretary of Homeland Security Alejandro N. Mayorkas. “I commend our workforce at Homeland Security Investigations and our federal partners who are relentless in their efforts to stop the scourge of fentanyl. Today’s announcement exemplifies a whole-of-government approach to protecting our homeland that is yielding results.”
The Sinaloa Cartel is one of the most powerful drug cartels in the world and is largely responsible for the manufacturing and importing of fentanyl for distribution in the United States. Fentanyl is a dangerous synthetic opioid that is more than 50 times more potent than heroin. Fentanyl is now the leading cause of death for Americans ages 18 to 49, and it has fueled the opioid epidemic that has been ravaging families and communities across the United States for approximately the past eight years. Between 2019 and 2021, fatal overdoses increased by approximately 94%, with an estimated 196 Americans dying each day from fentanyl.
The Sinaloa Cartel operated as an affiliation of drug traffickers and money launderers who obtain precursor chemicals – largely from China – for the manufacture of synthetic drugs, manufacture drugs in Mexico, move those drugs into the United States, and collect, launder, and transfer the proceeds of drug trafficking. Once led by Joaquin Guzman Loera, aka El Chapo, and Ismael Zambada Garcia, aka El Mayo, the Sinaloa Cartel’s members and associates – allegedly including the sons of Guzman Loera, collectively known as the Chapitos – smuggled significant quantities of drugs through Mexico and into the United States. The Chapitos are Ivan Guzman Salazar, 40, Alfredo Guzman Salazar, 37, Joaquin Guzman Lopez, 36, and Ovidio Guzman Lopez, 33.
Following Guzman Loera’s arrest in January 2016 and extradition to the United States in January 2017, the Chapitos 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.
The indictments being unsealed today demonstrate that the Sinaloa Cartel has been engaged in drug trafficking activities into the United States, and violence, spanning over a decade and a half. The Chapitos are alleged to have repeatedly and consistently transported lethal amounts of cocaine, heroin, methamphetamine, and fentanyl.
The Chapitos allegedly used cargo aircraft, private aircraft, submarines and other submersible and semi-submersible vessels, container ships, supply vessels, go-fast boats, fishing vessels, buses, rail cars, tractor trailers, automobiles, and private and commercial interstate and foreign carriers to transport their drugs and precursor chemicals. They allegedly maintained a network of couriers, tunnels, and stash houses throughout Mexico and the United States to further their drug-trafficking activities. The Chapitos allegedly used these networks to import the drugs into the United States.
Southern District of New York
Fentanyl trafficking, weapons, and money laundering charges were unsealed today in the Southern District of New York against 28 defendants, including three of the Chapitos; top lieutenants and leadership of the Sinaloa Cartel; alleged manufacturers and distributors of the Sinaloa Cartel’s fentanyl; the managers of the violent armed security apparatus that protects the Sinaloa Cartel’s drug trafficking operations; the sophisticated money launderers who repatriate the Sinaloa Cartel’s drug proceeds back to Mexico; and multiple chemical precursor suppliers in China that fuel the Sinaloa Cartel’s fentanyl distribution operation.
According to court documents, Ivan Guzman Salazar, Alfredo Guzman Salazar, Ovidio Guzman Lopez, and their co-conspirators allegedly controlled extensive, multi-faceted, and international operations covering the fentanyl trade. Through these efforts, the Chapitos and the Sinaloa Cartel allegedly reaped hundreds of millions of dollars in profits by flooding the United States with fentanyl.
Seven defendants are in custody pending extradition proceedings.
Ovidio Guzman Lopez is charged in a separate indictment alleging the same offenses.
The DEA investigated the case with assistance from the Department of Treasury’s Office of Foreign Assets Control and the Department of State’s Rewards for Justice Program.
Assistant U.S. Attorneys Kyle A. Wirshba, Nicholas S. Bradley, Sarah L. Kushner, David J. Robles, and Alexander Li for the Southern District of New York are prosecuting the case. The Justice Department’s Office of International Affairs (OIA) provided substantial assistance.
Northern District of Illinois
Narcotics, money laundering, and firearms charges were unsealed today in the Northern District of Illinois against four of the Chapitos: Ivan Guzman Salazar, Alfredo Guzman Salazar, Joaquin Guzman Lopez, and Ovidio Guzman Lopez.
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), the Northern District of Illinois, the Southern District of California, and their law enforcement partners. The indictment alleges that between May 2008 and April 5, 2023, the Chapitos operated a drug trafficking Continuing Criminal Enterprise (CCE), along with additional drug, money laundering, and firearms charges.
Ovidio Guzman Lopez is charged in a separate indictment alleging the same offenses, dating from May 2008 until October 2021, when Mexican authorities arrested him on Jan. 5 in Culiacan, Sinaloa, Mexico. Ovidio Guzman Lopez remains detained in Mexico pending extradition proceedings.
The FBI Washington Field Office and San Diego Field Office, Homeland Security Investigations Nogales Office, DEA’s Chicago Division and San Diego Division, and IRS Criminal Investigations Chicago Office are investigating the case.
Acting Deputy Chief Katharine Wagner and 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. OIA provided substantial assistance.
This case is supported by the Organized Crime Drug Enforcement Task Forces (OCDETF).
District of Columbia
Narcotics, firearms, and witness retaliation charges were unsealed today in the District of Columbia against Nestor Isidro Perez Salas, aka Nini, 31, allegedly one of the Chapitos’ lead sicarios, or assassins.
According to court documents, Perez Salas is allegedly a leader and commander of the “Ninis,” a violent group charged with providing security for the Chapitos. From at least 2012 until February 2021, Perez Salas allegedly conspired to distribute and manufacture cocaine and methamphetamine for unlawful importation into the United States, used a firearm in furtherance of the alleged drug-trafficking offense, and killed, attempted to kill, threatened, and caused bodily injury to another to intimidate a government witness and informant.
The FBI Washington Field Office is investigating the case.
Trial Attorneys Kirk Handrich and Kate Naseef of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.
This case is supported by the OCDETF.
* * * * *
The U.S. Department of State, through its Narcotics Rewards Program, is offering rewards of up to $10 million for information leading to the arrest and/or conviction of Ivan Guzman Salazar, Alfredo Guzman Salazar, and Ovidio Guzman Lopez, and up to $5 million for information leading to the arrest and/or conviction of Joaquin Guzman Lopez.
Attorney General Merrick B. Garland, Deputy Attorney General Lisa O. Monaco, FBI Director Christopher A. Wray, DEA Administrator Anne Milgram, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Damian Williams for the Southern District of New York, U.S. Attorney Randy Grossman of the Southern District for California, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, and Acting Deputy Director PJ Lechleitner of the U.S. Immigration and Customs Enforcement (ICE) made the announcement.
Photos of the fugitives can be obtained at www.dea.gov/fugitives.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Four of Chapo’s Sons Indicted for Large-Scale Drug Trafficking, Money Laundering and Violent Crimes as Alleged Leaders of Sinaloa CartelRead the Press Release
NEWS RELEASE SUMMARY – April 14, 2023
SAN DIEGO – Four sons of Joaquín Guzmán Loera, the imprisoned former Sinaloa Cartel leader known as El Chapo, were indicted by a federal grand jury for large-scale drug trafficking, money laundering and violent crimes in connection with their assumption of cartel leadership following their father’s arrest and extradition to the United States.
The defendants, known collectively as the “Chapitos,” are Ivan Guzman Salazar, Alfredo Guzman Salazar, Joaquin Guzman Lopez, and Ovidio Guzman Lopez. Three brothers remain at large; Ovidio Guzman Lopez was arrested Jan. 5, 2023, by Mexican authorities in Culiacan, Sinaloa, Mexico. He remains detained in Mexico pending extradition proceedings.
The charges, unsealed today, were announced by Attorney General Merrick Garland, U.S. Attorney Randy Grossman and others at a news conference this morning at the U.S. Department of Justice in Washington, D.C. The charges stem from a decades-long, multi-district investigation by the Southern District of California, the Department of Justice Criminal Division’s Narcotic and Dangerous Drug Section, the Northern District of Illinois, and their law enforcement partners. A related indictment charging three of the brothers was also unsealed by the Southern District of New York.
To view press conference, please see https://www.justice.gov/live. For related Department of Justice press release, indictments and link to DEA fugitive photos, please see https://www.justice.gov/opa/pr/justice-department-announces-charges-against-sinaloa-cartel-s-global-operation.
According to the indictment, filed in the Northern District of Illinois, the defendants are charged under the “Continuing Criminal Enterprise Statute,” which targets large-scale drug traffickers who are responsible for long-term and complex drug conspiracies. They are also charged with additional drug trafficking, money laundering, firearms and violent crimes.
The indictment offers the most comprehensive look yet at the operations of the Sinaloa Cartel dating back 15 years. The indictment describes the cartel’s alleged drug transportation and distribution networks; its financial infrastructure that has laundered hundreds of millions of dollars in illicit proceeds; and the extensive use of violence to maintain power, including an internal power struggle
The Chapitos are alleged to have repeatedly and consistently obtained and transported multi-ton quantities of cocaine from and through Central and South America, including Colombia, Ecuador, Venezuela, Peru, Panama, Costa Rica, Honduras, and Guatemala, into Mexico, stored that cocaine throughout Mexico, and transported it across the U.S.-Mexico border for further distribution throughout the United States. The Chapitos and members of the Sinaloa Cartel also allegedly obtained, manufactured, and transported other drugs, including marijuana, heroin, and methamphetamine, knowing and intending that such drugs would be imported into and distributed throughout the United States. The Chapitos also allegedly obtained precursor chemicals for the manufacture of synthetic drugs and operated laboratories to manufacture methamphetamine.
The indictment said the defendants and other members and associates of the Sinaloa Cartel used, and caused to be used, various means to evade and escape law enforcement and military personnel and to protect their drug distribution activities, including on October 17, 2019, at what is known as the “Battle of Culiacán,” when the Mexican National Guard captured and then released Ovidio Guzmán López during a gunfight in Sinaloa state.
The indictment said the defendants obtained guns and other weapons; bribed corrupt public officials; and incited, threatened and engaged in violence, including murder, kidnapping, assault, and battery against law enforcement, rival drug traffickers, and members of their own drug trafficking organization.
The Chapitos allegedly used cargo aircraft, private aircraft, submarines and other submersible and semi-submersible vessels, container ships, supply vessels, go-fast boats, fishing vessels, buses, rail cars, tractor trailers, automobiles, and private and commercial interstate and foreign carriers to transport their drugs and precursor chemicals. They allegedly maintained a network of couriers, tunnels, and stash houses throughout Mexico and the United States to further their drug-trafficking activities. The Chapitos allegedly used these networks to import the drugs into the United States.
“Today, the Justice Department is announcing significant enforcement actions against the largest, most violent, and most prolific fentanyl trafficking operation in the world – run by the Sinaloa Cartel, and fueled by Chinese precursor chemical and pharmaceutical companies,” said Attorney General Merrick B. Garland. “Families and communities across our country are being devastated by the fentanyl epidemic. Today’s actions demonstrate the comprehensive approach the Justice Department is taking to disrupt fentanyl trafficking and save American lives.”
“Today, we deliver the most crushing blow to the Sinaloa Cartel since the conviction of Chapo Guzman,” said U.S. Attorney Randy Grossman. “We have charged Chapo’s four sons with leading a criminal enterprise built on trafficking tons of deadly drugs into our nation, money laundering, and murder. This case and others we have brought out of the Southern District of California demonstrate our unwavering resolve to dismantle the Sinaloa Cartel by attacking it at every level.” Grossman thanked the prosecution team and dedicated law enforcement partners at the FBI, HSI, DEA and IRS for their extraordinary work on this case.
“These indictments have been a long time in the making and we wouldn’t be here without the collaboration of our local, state, federal, and international partners,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “While there will always be more work to be done, these indictments will continue the dismantlement of an extremely vicious criminal enterprise that has been a primary driver of violence in our communities. We will continue to leverage our law enforcement partnerships to keep pressure on transnational criminal organizations like Los Chapitos.”
“Dismantling this notorious criminal organization flooding the U.S. with deadly narcotics and brutal criminal activity takes the collaboration of a multitude of law enforcement agencies and we are seeing the results of our collective efforts in today’s indictment,” said Special Agent in Charge Chad A. Plantz, HSI’s San Diego Field Office. “HSI proudly stands with our local, state and federal partners as we disrupt and dismantle criminal organizations such as the Sinaloa Cartel to end the violence they fuel across the country.
“The indictment alleges that for years, Joaquín Guzmán Loera’s (El Chapo) sons have destroyed lives and communities through drug trafficking and violence: their time is up,” said DEA Special Agent in Charge Shelly Howe. “These indictments were made possible by our cooperation with local, state, and federal partners. These partnerships demonstrate our collective commitment to tracking down, apprehending, and dismantling one of the strongest drug trafficking cartels from the top down.”
“The indictment alleges that the Chapitos moved drugs and money on a grand scale, and secured and maintained power with intimidation and violence,” said IRS-CI Chief Jim Lee. “Today, we say, no more. For the special agents of IRS Criminal Investigation, the work of investigating dangerous criminals never stops. This indictment shows our commitment to aggressively go after those committing financial crimes who are profiting from their illegal activities no matter who they are or where they commit the crime.”
Once led by the Chapitos’ father, Joaquin Guzman Loera, aka El Chapo, and Ismael Zambada Garcia, aka El Mayo, the Sinaloa Cartel’s members and associates – allegedly including the Chapitos – smuggled significant quantities of drugs through Mexico and into the United States.
Following Guzman Loera’s arrest in January 2016 and extradition to the United States in January 2017, the Chapitos 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 Damaso Lopez Nunez, his family, and his associates and, as a result, became principal leaders and drug traffickers within the Sinaloa Cartel.
The U.S. Department of State, through its Narcotics Rewards Program, is offering rewards of up to $10 million for information leading to the arrest and/or conviction of Ivan Guzman Salazar, Alfredo Guzman Salazar, and Ovidio Guzman Lopez and up to $5 million for information leading to the arrest and/or conviction of Joaquin Guzman Lopez.
Assistant U.S. Attorney Matthew J. Sutton for the Southern District of California and Acting Deputy Chief Katharine Wagner and Trial Attorney Kirk Handrich of the Criminal Division’s Narcotic and Dangerous Drug Section, and Assistant U.S. Attorneys Andrew Erskine and Erika Csicsila for the Northern District of Illinois, are prosecuting the case.
U.S. Attorney Grossman thanked federal, state and local law enforcement for the coordinated team effort in the culmination of this investigation. The FBI San Diego Field Office and Washington Field Office, Homeland Security Investigations San Diego and Nogales Office, DEA’s San Diego Division and Chicago Division, and IRS Criminal Investigation are investigating the case.
This prosecution is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
DEFENDANTS Case Number 09-CR-383 (ND-IL)
*Ivan Guzman Salazar Age: 40 Sinaloa, MX
*Alfredo Guzman Salazar Age: 37 Sinaloa, MX
*Joaquin Guzman Lopez Age: 36 Sinaloa, MX
Ovidio Guzman Lopez Age: 33 Sinaloa, MX
*Fugitives
An indictment and or complaint is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances in violation of Title 21 U.S.C. §§ 841 and 846
Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.
Continuing Criminal Enterprise, in violation of Title 21 U.S.C. §§ 848(a) and (b)
Term of custody including a mandatory minimum 20 years and up to life imprisonment, $2 million fine.
The defendants are charged as the principal administrators, organizers or leaders of the enterprise or is one of several such principal administrators, organizers, or leaders; and the violation involved 300 times the quantity of a substance described in subsection 841(b)(1)(B) (100 grams of heroin, 500 grams of cocaine, 100 kilograms of marijuana or 50 grams of Methamphetamine mixture), which is mandatory life imprisonment.
Conspiracy to Import Controlled Substances, in violation of Title 21 U.S.C. §§ 952, 960 and 963. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.
Conspiracy to Distribute Controlled Substances for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963; Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.
Distribution of a Controlled Substance, in violation of Title 21 U.S.C. § 841(a)(1); Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.
Conspiracy to Commit Money Laundering, in violation of Title 18 U.S.C. §§ 1956 (a)(2)(A) and (h); Term of custody up to 20 years imprisonment, a fine of the greater of $500,000 or twice the value of the monetary instrument or funds involved.
Use and Possession of a Firearm During a Drug Trafficking Crime, in violation of 924(c)(1)(A), (c)(1)(B). Term of custody up to life imprisonment, and a mandatory consecutive sentence of 30 years imprisonment.
AGENCIES
Federal Bureau of Investigation
Homeland Security Investigations
Drug Enforcement Administration
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, Narcotics and Dangerous Drug Section
Department of Justice, Office of International Affairs
Department of Justice, Office of Enforcement Operations, Electronic Surveillance Unit
U.S. Attorney’s Office for the Northern District of Illinois
Department of Treasury, Office of Foreign Asset Control
San Diego County District Attorney’s Office
San Diego Law Enforcement Coordination Center
Interpol
Navy Hospital Employee Pleads Guilty to Stalking Military Service MemberRead the Press Release
NEWS RELEASE SUMMARY – April 13, 2023
SAN DIEGO – Jonathan Sandoval, a former contract employee at a San Diego Navy hospital, pleaded guilty in federal court today to stalking his former co-worker who is a United States military service member.
According to his plea agreement, Sandoval intentionally harassed and intimated the military service member through several unwanted acts. On March 8, 2022, Sandoval rifled through the victim’s office and belongings while disregarding her requests to stop. On that same day, while in her office, Sandoval displayed a knife to the victim. Sandoval also sent the victim messages through internet messaging platforms even after the victim told him to stop sending her messages.
Sandoval admitted that he installed a hidden camera in the victim’s office without her knowledge and recorded video of the victim undressing and changing clothes in her office. And then, on March 15, 2022, Sandoval emailed the victim nude images he had taken without her knowledge and wrote in the email: “This is you naked. I’ll make sure and send all your videos of you changing. Have fun at work.”
“Stalking, harassing and surveilling someone with a secret camera is an extreme violation of privacy that causes severe distress in victims,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office is committed to protecting victims of stalking and holding perpetrators accountable for malicious activity over the internet and in person.” Grossman thanked the prosecution team and Naval Criminal Investigative Service for their excellent work on this case.
“Mr. Sandoval deserves to be held fully accountable for his reprehensible actions to harass, surveil, and intimidate a service member,” said Special Agent in Charge Joshua Flowers of the NCIS Southwest Field Office. “NCIS and our law enforcement partners remain committed to fully investigating and rooting out criminality within the ranks that threatens the safety of the Department of the Navy family.”
If you or someone you know has experienced cyberstalking by an active duty service member, please contact the following anonymous tip lines: https://www.ncis.navy.mil/Resources/NCIS-Tips/
(Navyand Marines), https://www.cid.army.mil/report-a-crime.html (Army), and https://www.osi.af.mil/Submit-a-Tip/ (Air Force), or call the Department of Defense Hotline at (800) 424-9098. Victims of cyberstalking by non-active-duty members should contact local law enforcement or the FBI field office.
DEFENDANTS Case Number 23cr00178-RSH
Jonathan Sandoval Age: 30 Calexico, CA
SUMMARY OF CHARGES
Stalking – Title 18, U.S.C., Section 2261A(2)(B)
Maximum penalty: Five years in prison and $250,000 fine
AGENCY
Naval Criminal Investigative Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Sophisticated Sinaloa Cartel Money Laundering Organization DismantledRead the Press Release
NEWS RELEASE SUMMARY – April 11, 2023
SAN DIEGO – A two-year investigation by FBI and DEA has resulted in the indictment of twelve people, the takedown of a transnational criminal organization that allegedly laundered at least $16.5 million for the Sinaloa cartel, and the rescue of two victims of an extortion plot.
Defendant Cristian Amaya Nava was the first to be sentenced in federal court yesterday to 60 months in prison in connection with the extortion and money laundering charges. In his plea agreement, he admitted that in February of 2021, he forced two victims to withdraw funds from their own accounts to repay a drug debt, under threat of harm to themselves and their families. In addition, he admitted that he laundered over $2.4 million for the cartel.
According to the superseding indictment, an investigation was initiated in the fall of 2020 after FBI agents identified a complex money laundering organization allegedly led by Enrique Daan Esparragoza Rosas of Culiacan, Sinaloa, Mexico. The indictment said Esparragoza’s organization used a network of shell companies incorporated in Wyoming to launder millions of dollars in cash belonging to the Sinaloa Cartel. The shell companies and a sophisticated financial network were created and overseen by Luis Ramirez, a U.S. citizen residing in Mesa, Arizona, the indictment said.
Ramirez and Esparragoza allegedly directed and facilitated employees of the money laundering organization to travel to cities throughout the United States to pick up bulk cash belonging to narcotics traffickers. The employees picked up the bulk cash in Chicago, Omaha, Boston, New York City, Baltimore, Charlotte, Philadelphia and other cities. Narcotics traffickers delivered bulk cash in amounts of up to $200,000 to the employees in hotel rooms and parking lots. Following the delivery of the illegal money, the criminal organization laundered the funds through the shell companies and then transferred the laundered funds to bank accounts in Mexico. In total, dozens of bank accounts used by the organization were targeted, resulting in the seizure of $1 million from those accounts plus about $197,430 in bulk cash.
In November 2020, the FBI worked with the DEA Chicago Field Office to conduct an operation using information from the investigation which resulted in the seizure of 368 pounds of crystal methamphetamine and 10 kilograms of heroin, allegedly from defendants Sugey Caro Salazar and Idsel Valenzuela in LaPorte, Indiana. They are accused of delivering cash to an employee of the money laundering organization.
According to the indictment, funds laundered by the organization were used to purchase a Volvo tractor-trailer that FBI agents seized near Las Vegas; and aircraft and aircraft engines for export to Mexico, among other things.
In the extortion plot, the FBI’s efforts resulted in a successful rescue of two victims who were being extorted by the money laundering organization in February 2021. Prior to the extortion, one of the victims, an employee of the money laundering organization, began stealing illicit funds from a bank account that he controlled for the organization. Under pressure from the organization to return the stolen funds, the victim and his family member concocted an unsuccessful scheme to repay the debt: He stole an additional $30,000 from the money laundering organization to purchase a tortilla machine, intending to resell it for a profit. The pair owed a substantial debt to the money laundering organization.
According to the indictment, when Esparragoza and Ramirez learned of the theft, they conspired to threaten and extort the pair to repay the funds. Esparragoza sent defendant Amaya Nava to threaten the men and their families. Amaya Nava has admitted that he drove the two men around Imperial and San Diego County to collect money from bank accounts they controlled. According to admissions in Amaya Nava’s plea agreement, Esparragoza also directly threatened the men and their families during several phone conversations that day, telling them that two truckloads of men from Tijuana would “take care of them” if they did anything stupid.
The FBI learned of the ongoing extortion after being alerted by an informant and began tracking the victims and Amaya Nava’s movements. Amaya Nava drove with the men from El Centro to San Diego in an effort to collect additional money from an associate of one of the victims. FBI agents coordinated with the National City Police Department to conduct a traffic stop wherein Amaya Nava was arrested and the two victims were rescued.
To date the investigation has resulted in the arrests of Amaya Nava and Luis Ramirez, who were charged with extortion and money laundering charges; Ivan Correia Zamora, Ricardo Torres, Kimberlly Reyes, Hector Francisco Vizcaino Moreno, Luis Armando Avila, and Cheliann Rivera Vazquez who are facing money laundering charges; Melvin Rosado (aka) Cristian Cruz Polanco has been arrested on money laundering and aggravated identity theft charges. Sugey Caro Salazar and Idsel Valenzuela have been arrested and charged with narcotics trafficking and money laundering. Enrique Daan Esparragoza Rosas has been charged with money laundering and extortion offenses. Enrique Daan Esparragoza Rosas has been charged with money laundering and extortion offenses. All but two defendants are pending trial. Enrique Daan Esparragoza Rosas and Ivan Correia are fugitives.
“Mexican drug cartels cannot succeed without money launderers,” said U.S. Attorney Randy Grossman. “Our office will prosecute not only those who traffic in drugs but also those who enable the drug traffickers through sophisticated shell corporations and multiple bank accounts.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.
“This operation highlights how the FBI and our law enforcement partners are joining efforts to dismantle organized, violent, criminal enterprises,” said Special Agent in Charge Stacey Moy of the FBI San Diego Field Office. “These enterprises create a space for cartels to exist and we will spare no resources when it comes to addressing the criminals who enable the flow of poison to our communities.”
“Drug cartels exist to profit from the sale of poison to our communities,” said Special Agent in Charge Shelly Howe. “The DEA and our law enforcement partners will continue to target and dismantle money laundering organizations operating in the Imperial Valley that facilitate the movement of drug proceeds from the United States to Mexico-based drug cartels.”
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS Case Number 22cr2185-BAS
Enrique Daan Esparragoza Rosas Age: 37 Culiacan, Sinaloa, Mexico
Luis Ramirez Age: 41 Mesa, Arizona
Ricardo Torres Age: 30 El Centro, California
Kimberlly Reyes Age: 24 Mexicali, Mexico
Hector Francisco Vizcaino Moreno Age: 33 Calexico, California
Cristian Jose Polanco Age: 52 Philadelphia, Pennsylvania
Cheliann Rivera Vazquez Age: 29 Philadelphia, Pennsylvania
Luis Armando Avila Age: 22 Ontario, CA
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison and $500,000 fine
Esparragoza Rosas and Luis Ramirez - Only
Hobbs Act Extortion - Title 18, U.S.C., Section 1951(a)
Maximum penalty: Twenty years in prison and $250,000 fine
Cristian Jose Polanco – Only
Title 18, U.S.C., Section 1028A(a)(1) – Aggravated Identity Theft
Maximum penalty: Two years in prison and $250,000 fine
Case Number 21cr1693
Cristian Amaya Nava Age: 37 Calexico, CA
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison and $500,000 fine
Hobbs Act Extortion - Title 18, U.S.C., Section 1951(a)
Maximum penalty: Twenty years in prison and $250,000 fine
Case Number 22cr1477
Ivan Correia Zamora Age: 37 San Diego, California
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison and $500,000 fine
Case Number 22cr0612 and 22cr0776
Sugey Caro-Salazar Age: 46 La Porte, Indiana
Idsel Valenzuela Age: 27 La Porte, Indiana
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison and $500,000 fine
Conspiracy to Distribute Methamphetamine – Title 21, U.S.C., Section 846 and 841(a)(1)
Maximum penalty: Life in prison; mandatory minimum 10 years in prison and $10,000,000 fine
AGENCIES
Federal Bureau of Investigation
Drug Enforcement 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.
Foot Guide Charged with Sexual Abuse of 17-Year-Old GirlRead the Press Release
NEWS RELEASE SUMMARY – April 6, 2023
SAN DIEGO – Cecilio Jimenez-Bautista of Mexico appeared in federal court today to face charges that he sexually abused a 17-year-old unaccompanied minor who he and his brother guided from Tijuana, Mexico into the United States in June 2022.
According to allegations in a grand jury indictment, Jimenez-Bautista and his brother, Alexander Jimenez-Bautista, guided the girl and other Mexican citizens from Mexico to the United States through the Otay Mountain Wilderness area with the intent to violate the immigration laws of the United States. Over the course of three days, the group was taken along remote, rugged and desolate paths before being apprehended by U.S. Border Patrol agents at an area near Otay Lakes Road.
During those three days, Cecilio Jimenez-Bautista repeatedly isolated the girl from the group and placed her in fear, and sexually abused her, the indictment said. He ultimately used her fear of him to cause her to engage in sex with him, causing her serious bodily injury.
Both brothers face charges related to their role as foot guides for an alien smuggling organization from June 2022 to February 2023.
“We will do everything in our power to protect children from harm,” said U.S. Attorney Randy Grossman. “The United States is committed to protecting the rights of all individuals on our soil, especially the most vulnerable.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“The dangers of human smuggling cannot be overstated,” said Chad Plantz, special agent in charge, HSI San Diego. “According to the complaint, this child entrusted her safety to smugglers. They, in turn, demonstrated that they value profit over human life. HSI and its law enforcement partners are committed to investigating organizations and individuals involved in the exploitation of migrants.”
“We are continuously watchful and alert to deter, detect and prevent threats to any individual,” said San Diego Sector Chief Patrol Agent Aaron M. Heitke. “This includes working together with our law enforcement partners to identify smugglers, and their organizations, who take advantage and profit by placing human lives at risk.”
Assistant U.S. Attorneys Katherine McGrath and Edward Chang of the Southern District of California, and Trial Attorney Danielle L. Hickman of the Human Rights and Special Prosecutions Section of the Criminal Division of the Department of Justice are prosecuting the case.
DEFENDANTS Case Number 22cr1550-LL
Cecilio Yonatan Jimenez-Bautista Age: 26
Alexander Jimenez-Bautista Age: 20
SUMMARY OF CHARGES
Cecilio Jimenez Bautista
Conspiracy to Bring in Aliens Resulting In Serious Bodily Injury, 8 U.S.C. §§ 1324(a)(1)(A)(i), (v)(1), and (a)(1)(B)(iii)
Maximum Penalty: Twenty years
Abusive Sexual Contact, 18 U.S.C. § 2244(b)
Maximum Penalty: Two years
Sexual Abuse by Fear, 18 U.S.C. § 2242(1)
Maximum Penalty: Life in prison
Bringing an Alien to the United States for Financial Gain and Aiding and Abetting,
8 U.S.C. § 1324(a)(2)(B)(ii), and 18 U.S.C. § 2
Maximum Penalty: Fifteen years (Five years mandatory minimum)
Alexander Jimenez-Bautista
Conspiracy to Bring in Aliens Resulting In Serious Bodily Injury, 8 U.S.C. §§ 1324(a)(1)(A)(i), (v)(1), and (a)(1)(B)(iii)
Maximum Penalty: Twenty years
Bringing an Alien to the United States for Financial Gain and Aiding and Abetting,
8 U.S.C. § 1324(a)(2)(B)(ii), and 18 U.S.C. § 2
Maximum Penalty: Fifteen years (Five years mandatory minimum)
AGENCY
Homeland Security Investigations
U.S. Border Patrol
Joint Task Force Alpha
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This case was supported by Joint Task Force Alpha (JTFA). JTFA was created by the Attorney General in June 2021 in partnership with the Department of Homeland Security (DHS), to strengthen the Department’s overall efforts to combat these crimes based on the rise in prolific and dangerous smuggling from and through Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle those human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse or exploit migrants, present national security risks, or engage in other types of transnational organized crime.
The U.S. Attorney’s Office for the Southern District of California helps lead JTFA, which is comprised of detailees from southwest border U.S. Attorney’s Offices, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California, and dedicated support for the program is also provided by numerous components of the Criminal Division that are part of JTFA – led by the Human Rights and Special Prosecutions Section (HRSP), and supported by the Office of Prosecutorial Development, Assistance, and Training (OPDAT), the Narcotic and Dangerous Drug Section (NDDS), the Money Laundering and Asset Recovery Section (MLARS), the Office of Enforcement Operations (OEO), the Justice Department’s Office of International Affairs (OIA), and the Organized Crime and Gang Section (OCGS). JTFA is made possible by substantial law enforcement commitment from DHS, FBI, Drug Enforcement Administration (DEA), and other partners.
Owner of Pacific Crest Equity Partners Pleads Guilty to Tax Evasion, Forfeits $1.9mRead the Press Release
NEWS RELEASE SUMMARY — April 4, 2023
SAN DIEGO— Kenneth Yonika of Alpine, California pleaded guilty in federal court today to evading federal taxes in 2017, 2018 and 2020.
As part of his guilty plea, Yonika agreed to pay $669,133 in restitution to the Internal Revenue Service and forfeit $1.9 million seized by the Internal Revenue Service Criminal Investigation (IRS-CI) and Homeland Security Investigations (HSI).
According to court documents, in 2017, 2018 and 2020, Yonika and his partners utilized a foreign-based nominee to sell securities in the United States and abroad. To offer the securities, Yonika and others had the nominee sign paperwork falsely reporting the nominee owned the securities. Yonika and others then opened a United States bank account to receive millions of dollars in profits from the sale of the securities, which were distributed to Yonika and his partners.
In an effort to hide the income of the securities sales, Yonika engaged in numerous financial transactions involving his personal bank accounts and bank accounts belonging to his company, Pacific Crest Equity Partners, Inc. For example, Yonika conducted dozens of wire transfers from both personal bank accounts and Pacific Crest bank accounts to family members and used Pacific Crest Equity Partner bank accounts to purchase real property and pay for personal expenses. Yonika admitted that his transactions with the nominee, Pacific Crest Bank accounts, and family members were all willful attempts to criminally evade income taxation.
“When someone cheats the tax system, it hurts all honest taxpayers and the integrity of our institutions,” said U.S. Attorney Randy Grossman. “This office will pursue and seek a just punishment for these crimes.” Grossman thanked the prosecution team and agents from IRS and Homeland Security Investigations for their excellent work on this case.
“Mr. Yonika attempted to bypass rules that protect our capital markets, and then skirted U.S. tax laws to evade paying his fair share on the millions of dollars he profited,” said Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation’s Los Angeles Field Office. “At this time of year, when hard working Americans are honestly and diligently preparing their tax returns, it is unacceptable that Mr. Yonika evaded his taxes by taking overt steps to hide his income. The IRS Criminal Investigation and its law enforcement partners are determined to bring those that commit tax fraud to justice.”
“HSI Costa Pacifico Money Laundering Task Force will continue to work with our law enforcement partners to investigate and prosecute criminals that use complex financial schemes to defraud innocent investors,” said HSI San Diego Special Agent in Charge, Chad Platz. “Offshore accounts and shell companies will not deter us from holding these bad actors accountable.”
Sentencing is scheduled for June 30 at 8:30 a.m. before U.S. District Judge Gonzalo Curiel.
DEFENDANT Case Number 21CR2542-TWR
Kenneth Yonika Alpine, CA Age: 45
SUMMARY OF CHARGES
Tax Evasion—Title 26, U.S.C., Section 7201
Criminal Forfeiture—Title 18, U.S.C., Section 982
Maximum penalty: Five years in prison, $250,000 fine or twice the gross gain or loss from the offense, whichever is greater; forfeiture and restitution
AGENCY
IRS Criminal Investigation
Homeland Security Investigations
Former San Diego Police Officer and Others Plead Guilty to Crimes Stemming from Operation of Illicit Massage BusinessesRead the Press Release
NEWS RELEASE SUMMARY – April 4, 2023
SAN DIEGO – Former San Diego Police Vice Detective Peter Griffin and three co-defendants pleaded guilty in federal court today in connection with their operation of five illicit massage businesses in California and Arizona that profited for years by exploiting women to engage in commercial sexual services under the guise of offering therapeutic massage services.
According to court documents, Griffin, who left the San Diego Police Department in 2002, and codefendants Kyung Sook Hernandez, Yu Hong Tan, and Yoo Jin Ott 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 finances of the businesses, advertising commercial sexual services online, recruiting and employing women to perform commercial sexual 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 operate the illicit massage businesses.
Griffin, who is also a former attorney, 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. According to his plea agreement, throughout the course of the scheme, Griffin used the experience and skills he acquired through his work as a vice detective – and in at least one instance, his badge – to help the businesses evade law enforcement; thwart regulatory inspections, investigations and any official action against the businesses; conceal evidence and maintain a façade of legitimacy.
On another occasion, Griffin told an employee that he was a former police officer and instructed her not to “open [her] mouth” about her employment at the illicit massage business. Griffin also used 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. Through the course of the scheme, the defendants encouraged and expected employees to perform commercial sexual services inside the businesses and relied on Griffin’s law enforcement background to help conceal the criminal conduct. 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.”
“This criminal scheme involved illicit businesses that exploited a vulnerable population,” said U.S. Attorney Randy Grossman. “We are committed to prosecuting the offenses that impact not only the employees of these illicit businesses, but the safety of the communities in which they operate.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“The defendant – a former vice detective who once took an oath to uphold our laws – knew more than most that illicit massage businesses cruelly profit by exploiting women for commercial sex,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are committed to prosecuting the proprietors of these illegal businesses, and to shining a light on those places where sexual exploitation and trafficking persist.”
“Peter Griffin misused the expertise acquired during his time as a vice detective and abused the respect that came with his badge – all to ensure that his ‘massage parlors’ operated under the radar for his personal financial gain,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The guilty pleas of Griffin and his co-defendants underscore the Justice Department’s commitment to holding accountable those who profit from crime, particularly crimes that involve the exploitation of vulnerable populations and the abuse of trust that communities place in law enforcement. This plea would not have been possible without the innovative and collaborative efforts of our partners in federal and local law enforcement, the Human Trafficking Prosecution Unit, and the U.S. Attorney’s Office for the Southern District of California.”
“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.”
“Investigating criminal activity that targets vulnerable individuals and communities is one of IRS-CI’s top priorities,” said Tyler Hatcher Special Agent in Charge of IRS Criminal Investigation's Los Angeles Field Office. “Peter Griffin and his co-defendants will now face the consequences of their almost decade long illegal business that took advantage and victimized women within our community. IRS-CI is committed to using our financial expertise to trace illicit funds and bring down these criminal enterprises.”
“Griffin betrayed the pledge he took to uphold our laws and to protect the members of our community through his egregious misuse of power and knowledge,” said Acting Special Agent in Charge John Kim of the FBI’s San Diego Field Office. “We appreciate the collaboration of our federal, state, and local partners to ensure that justice is served to Griffin and his co-conspirators. There is no place in our community for those who negligently prioritize money over people.”
“This trusted member of the community and his associates profited from the illegal proceeds of the commercial sex industry which is often accompanied by other forms of criminal activity such as money laundering,” said Chad Plantz, special agent in charge, HSI San Diego. “This law enforcement officer utilized his institutional knowledge of the job to betray the public trust. HSI will continue working with our federal, state, and local law enforcement partners to hold accountable those who profit off of individuals lured into this exploitative industry.”
The investigation was led by Homeland Security Investigations, Internal Revenue Service Criminal Investigation, and the 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.
The investigation was also supported by the Federal Bureau of Investigations, the San Diego Police Department, the San Diego Sheriff’s Department, the Escondido Police Department, the San Diego District Attorney’s Office, and the Tempe, Arizona Police Department. Assistant U.S. Attorney Jill Streja of the Southern District of California, 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 are prosecuting the case.
DEFENDANTS Case Number 22cr1824-JO
Peter Griffin 78
Kyung Sook Hernandez 58
Yu Hong Tan 56
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 Investigations
Federal Bureau of Investigation
San Diego Human Trafficking Task Force
Escondido Police Department
San Diego Police Department
San Diego District Attorney’s Office
San Diego County Sheriff’s Department
Tempe, Arizona Police Department
Navy Doctor Pleads Guilty to Defrauding the NavyRead the Press Release
NEWS RELEASE SUMMARY – March 28, 2023
SAN DIEGO – Dr. Michael Villarroel, a U.S. Navy doctor, pleaded guilty today in federal court, admitting that he and others conspired to defraud the Navy by faking or exaggerating injuries to obtain insurance payments intended to help service members recovering from traumatic injuries. Villarroel acknowledged he knew the claimed injuries were false or exaggerated but signed off on applications for a share of the insurance payments.
Participants in the scheme obtained about $2 million in payments from the Traumatic Servicemembers Groups Life Insurance (TSGLI) program which is funded by service members and the Navy. Villarroel personally obtained more than $180,000 in kickbacks.
“These military healthcare dollars, which were intended to benefit injured and traumatized service members, instead funded a fraudulent windfall,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office and our agency partners will relentlessly pursue justice for victims of fraud schemes that harm our service members and taxpayers.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
Villarroel admitted that from 2012 to at least December 2015, he conspired to commit wire fraud with Christopher Toups, a chief petty officer construction mechanic in the Navy; Kelene Meyer, Toups’ spouse and a nurse; and others. Toups prodded other service members to submit claims, told them to provide medical records to Meyer, requested part of the insurance payment in return, and distributed shares to Meyer and Villarroel. Meyer used her medical background to falsify or doctor supporting records to reflect fake or exaggerated injuries.
Villarroel claimed to have reviewed medical records and verified disabilities consistent with the injuries as needed for claims to be processed and qualify. At times Villarroel supported his determination by falsely stating he interviewed the claimant. At other times Villarroel gave Meyer medical records belonging to others to use in fabricating claims. Toups paid Villarroel in cash and by cashier’s check and, at points, Villarroel conducted transactions in amounts under $10,000 to evade currency transaction reporting requirements.
Villarroel is the tenth defendant to plead guilty to crimes committed under the scheme. Several conspirators were members of Explosive Ordinance Disposal Expeditionary Support Unit One (“EOD ESU One”), based in Coronado, California.
“Dr. Villarroel defrauded the Navy and the U.S. taxpayer by participating in a reprehensible scheme to wrongly obtain more than $2 million that should have been directed to wounded service members,” said Acting Special Agent in Charge Michael D. Butler II of the NCIS Economic Crimes Field Office. “NCIS and our partners remain committed to investigating all allegations of fraud that harms Department of the Navy service members and their families.”
“Dr. Villarroel abused his position of trust to enrich himself and his co-conspirators,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “As a medical doctor and Naval Commander, Dr. Villarroel is held to a higher standard which makes this scheme to defraud the Traumatic Service Members Group Life Insurance program even more egregious. The FBI would like to thank our partners at Veterans Affairs – Office of Inspector General and Naval Criminal Investigative Service for their tremendous partnership on this case.”
“Fraudulently filing claims for unearned TSGLI benefits diverts compensation from deserving service members who suffered serious and debilitating injuries while on active duty,” said Special Agent in Charge Rebeccalynn Staples of the Department of Veterans Affairs Office of Inspector General’s Western Field Office. “The VA OIG thanks the United States Attorney’s Office and our law enforcement partners for their efforts in bringing this defendant to justice.”
Villarroel is scheduled to be sentenced on June 16 at 9 a.m. by U.S. District Judge Janis L. Sammartino.
DEFENDANT 18CR1674-JLS
Michael Villarroel 48 Coronado, California
RELATED CASES
Kelene Meyer 18CR1674-JLS 44 Jacksonville, FL
Christopher Toups 18CR1674-JLS 43 Woodstock, GA
Paul Craig 18CR1674-JLS 47 Austin, TX
Richard Cote 18CR1674-JLS 45 Oceanside, CA
Earnest Thompson 18CR1674-JLS 46 Murrieta, CA
Ronald Olmsted 20CR0659-JLS 48 Mobile, AL
Anthony Coco 20CR0197-JLS 43 San Diego, CA
Stephen Mulholland 20CR0052-JLS 51 Panama City Beach, FL
Roy Sedano 21CR1493-JLS 44 Spring Valley, CA
CHARGES
18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution
AGENCIES
Department of Veterans Affairs, Office of Inspector General
Federal Bureau of Investigation
Naval Criminal Investigative Service
Leader of Human Smuggling Transportation Cell Sentenced to 51 months in PrisonRead the Press Release
NEWS RELEASE SUMMARY – March 28, 2023
SAN DIEGO – Jose Manuel Gonzalez was sentenced in federal court yesterday to 51 months in prison for two unrelated human smuggling incidents - the first of which was committed in 2019 and the second in 2021 while the defendant was on supervised release for the 2019 charges.
According to his plea agreement, in the late evening of July 5, 2019, Border Patrol agents caught Gonzalez as he was transporting eight individuals in a minivan after they crossed the border illegally from Mexico. Gonzalez was charged with Transportation of Illegal Aliens, granted bail on that offense, and remained out of custody. Agents and the United States Attorney’s Office continued to investigate Gonzalez’ activities.
After reviewing Gonzalez’ cellphone records around the day of the offense, the prosecution team discovered that Gonzalez was communicating with unknown co-conspirators in Mexico and a “foot guide” who was responsible for guiding the illegal individuals over the U.S.-Mexico border. The purpose of Gonzalez’ communications with the unknown co-conspirators and the “foot guide” was to avoid law enforcement detection. After further investigation, the U.S. Attorney’s Office added charges alleging that Gonzalez conspired with others to bring aliens into the U.S. for financial gain.
While on bail, on June 18, 2021, Gonzalez was again caught and arrested for transporting 12 illegal aliens in the back of a pickup truck into the United States. Customs and Border Protection agents attempted to stop Gonzalez, but Gonzalez disregarded emergency lights and sirens and led them on a high speed chase, narrowly avoiding at least one vehicle and a possible head-on collision during the pursuit. The undocumented individuals remained hidden in the back of the pickup truck as Gonzalez attempted to evade agents during the high-speed chase. As a result of this incident, Gonzalez was charged with additional counts alleging the transportation of illegal aliens, plus a count alleging that Gonzalez committed the June 18, 2021 acts while Gonzalez was on Court-ordered pretrial release.
U.S. District Judge Gonzalo Curiel sentenced Gonzalez to 36 months on the human smuggling offenses, plus an additional 15 months for committing the June 2021 offense while on pretrial release, for a total of 51 months in prison. The sentence also included enhanced penalties for the substantial risk that Gonzalez’ high-speed chase caused; the illegal transportation of a minor; and an aggravated role within the transportation cell’s Alien Smuggling activities.
“This defendant committed the same crime again after he was caught and released on bond,” said U.S. Attorney Randy Grossman. “This case is more proof that human smugglers care only about money and have zero regard for the safety and well-being of their customers. Please, never trust your life to a smuggler.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“This prosecution is a result of the continued dedication by our agents, and our partners in the U.S. Attorney's office,” said San Diego Border Patrol Sector Chief Patrol Agent Aaron M. Heitke. “We will continue to deliver consequences to the transnational criminal organization operating throughout border region.”
DEFENDANT Case Number 20-cr-03446-GPC
Jose Manuel Gonzalez Age: 31 Spring Valley, CA
SUMMARY OF CHARGES
Conspiracy, in violation of 18 U.S.C. § 371;
Bringing in Aliens for Financial Gain and Aiding and Abetting, in violation of 8 U.S.C. § 1324(a)(2)(B)(ii);
Maximum penalty: Five years in prison and a $250,000 fine per count, with a mandatory minimum of three years for the counts under § 1324.
Transportation and Attempted Transportation of Certain Aliens for Financial Gain, in violation of 8 U.S.C. § 1324(a)(1)(A)(ii) and (a)(1)(B)(i);
Maximum penalty: Ten years in prison and a $250,000 fine per count.
AGENCY
U.S. Customs and Border Protection
U.S. Border Patrol
*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.
Couple Pleads Guilty to Smuggling $2 Million in Pesticides and Veterinary DrugsRead the Press Release
NEWS RELEASE SUMMARY – March 28, 2023
SAN DIEGO – Otilio Rodriguez Toledo and Alicia Aispuro Hernandez, husband and wife from Thermal, California, pleaded guilty in federal court today to conspiring to smuggle and distribute $2 million worth of Mexican pesticides and veterinary drugs that are not approved for use in the United States.
In pleading guilty, the defendants acknowledged that since at least December of 2018, they had been engaged in smuggling pesticides and veterinary drugs from Mexico into the United States, and then distributing them within the United States. The pesticides involved were primarily Taktic and Bovitraz, which are not registered with the EPA for use in the United States. The smuggled veterinary drugs included Tetragent Aves, Metabolase, Terramicina, Cipio Vet, Baytril Max, Tylovet, Caterrol, Penicilina, and Tylosma, which are not approved by the FDA for use in the United States.
In pleading guilty, the defendants admitted that the smuggled pesticides and veterinary drugs were brought in through the Calexico Port of Entry in Imperial County and placed in storage units near the border. The smugglers would send photographs of the products at the storage units as proof of delivery.
The defendants admitted they later picked up the products from the storage units and distributed them to others within the United States. As part of their plea agreement, the defendants agreed that the value of the smuggled goods was more than $1 million but less than $2.2 million and further agreed that the government could seek the forfeiture of up to $2.2 million in proceeds obtained from the sale of the smuggled goods.
According to experts at the U.S. Environmental Protection Agency and elsewhere, the active ingredient in the pesticides Taktic and Bovitraz is amitraz, which is toxic to bees and humans if it is released into hives and ultimately ends up in honey, honeycomb and beeswax.
Misuse of amitraz-containing products in beehives can result in exposures that could cause neurological effects and possibly reproductive effects in humans from the consumption of contaminated honey. Signs of neurotoxicity from exposure to amitraz has been documented in multiple animal species, including central nervous system depression, decrease in pulse rate, and hypothermia.
“These rules are in place to protect animals, people and the environment from harmful pesticides and drugs,” said U.S. Attorney Randy Grossman. “Public safety is our top priority and we intend to enforce those laws.” Grossman thanked the prosecution team and investigators on the case who relentlessly pursued the leaders of this smuggling organization.
“The defendants in this case smuggled illegal and hazardous chemicals into the United States for profit knowing they were banned and posed a significant health and safety threat to humans, wildlife and the environment,” said Chad Plantz, Special Agent in Charge, HSI San Diego. “This guilty plea highlights HSI’s steadfast commitment to working with our partners to pursue, arrest, and bring to justice anyone who threatens the well-being of our communities.
“The FDA regulates animal drugs as part of its mission to protect the public health, which includes ensuring that prescription animal drugs are lawfully distributed and dispensed pursuant to a valid prescription,” said Acting Special Agent in Charge Brian G. McClune, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to pursue and bring to justice those who attempt to evade the law.”
“The defendants’ conduct put consumers at risk,” said Scot Adair, Special Agent in Charge of the EPA’s criminal enforcement program in California. “The pesticides they attempted to distribute were smuggled into the United States from Mexico and are illegally used in beehives. The defendants in this case made millions of dollars in ill-gotten gains through the illegal sale of this unregistered pesticide.”
The defendants are scheduled to be sentenced by U.S. District Judge John A. Houston on June 21,2023 at 10 a.m. This case is being prosecuted by Assistant U.S. Attorney Melanie K. Pierson from the U.S. Attorney’s Office for the Southern District of California and Senior Trial Attorney Stephen Da Ponte from the Environmental Crimes Section, Environment and Natural Resources Division of the U.S. Department of Justice.
DEFENDANTS Case Number 22cr1965-JAH
Otilio Rodriguez Toledo Age: 38 Thermal, CA
Alicia Aispuro Hernandez Age: 38 Thermal, CA
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine
INVESTIGATING AGENCIES
Homeland Security Investigations
U.S. Environmental Protection Agency
Criminal Investigations Division
U.S. Food and Drug Administration, Office of Criminal Investigations; California Department of Toxic Substances Control
Long-Time Sex Trafficker Sentenced to More than 15 Years in PrisonRead the Press Release
NEWS RELEASE SUMMARY – March 23, 2023
SAN DIEGO – Kevin Lamont Beal of San Diego was sentenced in federal court today to 188 months in prison for knowingly coercing and enticing a teenage girl to engage in commercial sex acts.
According to court records, Beal has a long criminal past involving state convictions for pimping and pandering from 2012 through 2019.
A complaint was filed against Beal in April 2021, charging him with sex trafficking of underage girls and adult females. Beal pleaded guilty to federal charges in January 2022. In his plea agreement, Beal admitted that he transported underage girls and women and provided them to customers for commercial sex acts, which took place in California and elsewhere from December 2016 through August 2018. During this time, Beal used his cellular telephone to entice and coerce an underage girl (while she was 16 and 17 years old) for the purpose of having her engage in commercial sex acts and prostitution in San Diego County and elsewhere. As part of his efforts to entice and coerce this underage girl, Beal continued to communicate with her by text message and through social media for almost two years.
As part of his guilty plea, Beal also admitted that he recruited, transported, and provided another underage girl (while she was 16 and 17 years old) for the purpose of her to engage in commercial sex acts and prostitution from December 2016 through March 2017. As part of his human trafficking activities, Beal instructed this underage girl to meet with customers, commonly referred to as “johns,” by walking the street, commonly referred to as the “blade” (an area known for prostitution activities). Beal also caused online advertisements of the underage girl to be posted on various websites for customers solicit her for commercial sex acts.
Lastly, Beal admitted he recruited, enticed, transported, and provided an adult female for the purpose of her to engage in commercial sex acts and prostitution from April 2018 through May 2018. As part of his human trafficking activities, Beal also instructed the adult female to meet customers by walking the “blade” and by posting online advertisements offering her to customers for commercial sex acts. During this time, Beal used force against the adult female by striking her multiple times in the face causing serious bodily injuries. Beal admitted he used a combination of force and coercion to cause the adult female to engage in commercial sex acts.
“No city is immune from traffickers seeking to entice and coerce underage and adult victims to engage in sex trafficking,” said U.S. Attorney Randy Grossman. “Today’s sentence sends a strong message that we will continue to work together with our local, state, and federal partners to protect our community’s most vulnerable victims from these heinous crimes by prosecuting their traffickers.” Grossman thanked the prosecution team and members of the San Diego Human Trafficking Task Force for their excellent work on this case.
“Sex trafficking is an abhorrent crime with long-lasting consequences,” said San Diego FBI Special Agent in Charge Stacey Moy. “The FBI is committed to the unceasing pursuit of sex traffickers and to the rescue and recovery of the children and adults they victimize. These criminals can only be stopped with the collaboration of our law enforcement partners and the public."
Beal has been detained in custody since his arrest in April 2021.
At the sentencing hearing today, U.S. District Todd W. Robinson not only imposed the 15-year prison sentence, but also ordered Beal to serve a 10-year term of supervised release and to pay a $5,000 mandatory penalty assessment pursuant to the Justice for Victims of Trafficking Act. Beal will also be required to register as a sex offender under the Sex Offender Registration and Notification Act. Judge Robinson also ordered the criminal forfeiture of a blue, 2015 Maserati Ghibli, $2,420 in U.S. currency, and other personal luxury items by Gucci and Versace. These personal luxury items were previously ordered as restitution to one of Beal’s trafficking victims in May 2022.
DEFENDANT Case Numbers: 21CR1565-TWR
Kevin Lamont Beal Age: 29 San Diego, CA
SUMMARY OF CHARGES
Coercion and Enticement of a Minor, in violation of Title 18, United States Code, Section 2422(b)
Maximum Penalties: Life in prison; mandatory Sex Offender Registration; a maximum term of supervised release of life; a $5,000 mandatory penalty assessment pursuant to the Justice for Victims of Trafficking Act; mandatory restitution to the victims.
INVESTIGATING AGENCIES
San Diego Human Trafficking Task Force, which consists of:
- Federal Bureau of Investigation
- California Department of Justice
- California Department of Corrections & Rehabilitation – Parole
- California Highway Patrol
- ICE/Homeland Security Investigations
- National City Police Department
- San Diego City Attorney’s Office
- San Diego County District Attorney’s Office
- San Diego County Probation Department
- San Diego County Sheriff’s Department
- San Diego Police Department
- The United States Attorney’s Office, Southern District of California
Coordinator Pleads Guilty in Fatal Imperial County Smuggling Incident Resulting in Thirteen DeathsRead the Press Release
SAN DIEGO – Jose Cruz Noguez pleaded guilty in federal court today to charges stemming from a March 2, 2021, smuggling incident in which thirteen people died when the vehicle in which they were concealed collided with a tractor trailer near Holtville, California.
In a hearing in United States District Court, the defendant admitted that he and his co-conspirators sought to smuggle a large number of undocumented migrants into the United States by loading them into modified SUVs and breaching an area of the international boundary fence between Mexico and the United States near Calexico, California. In the days leading up to March 2, 2021, the defendant committed various acts for the purpose of carrying out the conspiracy, such as attempting to recruit at least one criminal associate to drive a load vehicle containing as many as 20 undocumented migrants. And during the early morning hours of March 2, 2021, before the smuggling event, Cruz Noguez used his vehicle to scout the area that the load vehicles would be traveling. After confirming there was no law enforcement in the area, defendant’s co-conspirators loaded dozens of undocumented migrants – including at least one minor who was unaccompanied by a parent or guardian – into two modified SUVs and drove them into the United States through a breach they had cut in the international boundary fence. Once successfully in the United States, the two load vehicles traveled west along Interstate 8, and as has been reported in the media, one of the vehicles – a GMC Yukon – caught fire on Interstate 8 near Highway 115. Shortly thereafter, the other vehicle – a Ford Expedition – collided with a tractor-trailer on Highway 115 near Holtville, California. Thirteen individuals in the Ford Expedition died tragically as a result of the accident. In his plea agreement, Cruz Noguez admitted that he and his co-conspirators were smuggling the undocumented migrants into the United States for financial consideration and with the intent to violate the immigration laws of the United States.
The United States Attorney’s Office (USAO) initially indicted Cruz Noguez on April 27, 2021. Following further investigation, the USAO charged him and another individual (who remains a fugitive) in a Third Superseding Indictment on July 15, 2022. Cruz Noguez’s trial had been scheduled to begin on May 15, 2023. Instead, he entered into a plea agreement and pleaded guilty to a Superseding Information charging him with one count of Conspiracy to Bring in Undocumented Migrants and three counts of Bringing In Undocumented Migrants for Financial Gain (which carry a five-year mandatory minimum sentence).
Cruz Noguez is scheduled to be sentenced on June 9, 2023 at 9:00 a.m. before U.S. District Judge Cathy Ann Bencivengo.
This case was supported by Joint Task Force Alpha (JTFA). JTFA was created by the Attorney General in June 2021 in partnership with the Department of Homeland Security (DHS), to strengthen the Department’s overall efforts to combat these crimes based on the rise in prolific and dangerous smuggling from and through Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle those human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse or exploit migrants, present national security risks, or engage in other types of transnational organized crime.
The U.S. Attorney’s Office for the Southern District of California helps lead JTFA, which is comprised of detailees from southwest border U.S. Attorney’s Offices, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California, and dedicated support for the program is also provided by numerous components of the Criminal Division that are part of JTFA – led by the Human Rights and Special Prosecutions Section (HRSP), and supported by the Office of Prosecutorial Development, Assistance, and Training (OPDAT), the Narcotic and Dangerous Drug Section (NDDS), the Money Laundering and Asset Recovery Section (MLARS), the Office of Enforcement Operations (OEO), the Justice Department’s Office of International Affairs (OIA), and the Organized Crime and Gang Section (OCGS). JTFA is made possible by substantial law enforcement commitment from DHS, FBI, Drug Enforcement Administration (DEA), and other partners.
DEFENDANTS Case Number 21CR1277-CAB
Jose Cruz Noguez Age: 49 Mexicali, Mexico
Froylan Cortez Avalos (fugitive) Age: 49 Mexicali, MexicoSUMMARY OF CHARGES
Conspiracy to Bring In Undocumented Migrants
Title 8, U.S.C., Section 1324(a)(1)(A)(i) and (v)(I)
Maximum penalty: 10 years in prison and $250,000 fineBringing 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: 15 years in prison and $250,000 fineAGENCIES
Homeland Security Investigations
United States Border Patrol
California Highway Patrol
Imperial County Sheriff’s OfficeMan Sentenced to More than 16 Years for Importing 80 Pounds of Counterfeit Pills Containing FentanylRead the Press Release
SAN DIEGO – Moises Moreno of Moreno Valley, California, was sentenced in federal court today to 200 months in prison for importing more than 36 kilograms of fentanyl from Mexico into the United States.
After a two-day jury trial in October 2022, a jury found that Moreno knowingly imported more than 80 pounds of counterfeit prescription pills containing fentanyl from Mexico into the United States. During the trial, the prosecution presented evidence that Moreno attempted to smuggle the pills into the United States inside a sophisticated compartment in the roof of his pickup truck. The compartment was created by welding sheet metal underneath the truck’s roof to create a false ceiling where the pills were hidden.
Prosecutors also presented evidence from Moreno’s cell phone and calls Moreno made to unidentified associates after his arrest. During his calls from jail, Moreno bragged about how he “played dumb” after his arrest and “acted like he thought they found weed in his car.” Moreno further boasted to another associate about the amount of drugs he was caught smuggling and sang that he “got keys [a slang term for kilograms] coming from overseas,” a line from a popular hip hop song discussing drug trafficking.
The jury also heard the story Moreno told investigators at the time of his arrest: that he spent the weekend preceding before being caught at the border with a female friend in Mexico. Moreno told investigators that this friend must have set him up to import drugs in the vehicle without his knowledge. At the conclusion of the trial, the jury rejected Moreno’s story and returned a guilty verdict.
“This sentence sends a clear message to any would-be drug courier that you will receive a significant sentence in this district for your role in importing dangerous narcotics like fentanyl,” said U.S. Attorney Randy Grossman.
Grossman thanked the prosecution team and Homeland Security Investigations for their hard work on this case.
“HSI will continue to direct its full range of investigative authorities toward those who smuggle deadly drugs across the border and into our communities,” said Chad Plantz, special agent in charge of HSI San Diego. “This significant sentence demonstrates the U.S. government’s resolve with holding all those who traffic in drugs accountable for their actions.”
DEFENDANT Case Number 22-CR1375-BAS
Moises Moreno Age: 38 Phoenix, AZ; Moreno Valley, CA
SUMMARY OF CHARGES
Importation of Fentanyl – Title 21, United States Code, Sections 851 and 952/960
Mandatory Minimum: Fifteen years in prison
Maximum penalties: Life in prison and $10 million fine
AGENCY
Homeland Security Investigations
U.S. Customs and Border Protection
Romanian Citizens Arrested and Charged with Laundering $1.4 Million in Proceeds from Jewelry Thefts and Covid FraudRead the Press Release
NEWS RELEASE SUMMARY – March 14, 2023
SAN DIEGO – Eduard Ghiocel and Floarea Ghiocel, married Romanian nationals and suspected leaders of a Romania-based transnational organized crime group, are charged in federal court with laundering $1.4 million in proceeds from dozens of small thefts, robberies and swindles targeting mostly elderly victims in San Diego County.
Also charged are four of the Ghiocels’ family members or close associates, including Gabriel Ghiocel, Marius Ghiocel, Larisa Ghiocel and Argentina Alexandru. All defendants are alleged associates of the larger Valcea Romanian Transnational Crime Group.
Eduard and Floarea Ghiocel were transferred from state to federal custody and are scheduled to make their first appearance in federal court today. The other defendants remain at large in Romania.
Starting at 9 p.m. PST Monday night (6 a.m. Tuesday - Eastern European Time Zone), pursuant to seven Romanian search warrants issued by the Bucharest Tribunal and executed by police officers from the Romanian National Police's Directorate for Combatting Organized Crime, Service for Combatting Organized Criminal Groups, and Service for Combatting Organized Crime Valcea, assisted by FBI and IRS, officers seized Ghiocel assets across locations in Valcea County, Romania, including high-end luxury vehicles, gold coins, and cash, totaling $618,075.
According to a complaint and an international seizure warrant, the defendants conducted a series of 17 jewelry thefts in elderly communities in San Diego between March 2020 and September 2022. The complaint said the Ghiocels also filed false unemployment claims in order to steal about $32,250 in California unemployment insurance benefits intended to help workers impacted by the pandemic.
According to the complaint, the Ghiocels laundered the proceeds of their crimes by pawning expensive gold jewelry and watches for cash in jewelry stores in Los Angeles. The Ghiocels, who never had any legitimate employment, then systematically laundered that cash, along with the stolen unemployment insurance proceeds by sending wire transfers to Romania via Money Service Businesses, and by purchasing gold bars, gold coins, and high-end luxury vehicles from locations in Southern California and shipping these items to Romania. In total the Ghiocel Sub-Group repatriated $1,367,652.02 in assets from illicit funds to Romania, the complaint said.
“We have alleged that an organized crime group targeted and robbed members of San Diego’s senior community, many of whom lost items of great personal significance,” said U.S. Attorney Randy Grossman. “We will pursue justice for these crime victims wherever the evidence takes us, even as far as Romania.” Grossman thanked the prosecution team, investigating agencies and authorities in Romania for their excellent work on this case.
“The FBI would like to thank our local, state, federal, and Romanian partners for their incredible cooperation in this important matter,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “The FBI and our partners are committed to scouring the globe to find those who have victimized our citizens, to hold them accountable for their crimes and to seize what they have stolen. A special thanks to the Romanian authorities who were essential, as the trail of this investigation led within their borders: prosecutors from the Directorate for Investigating Organized Crime and Terrorism and police officers from the Romanian National Police’s Directorate for Combating Organized Crime. Their assistance is an excellent example of what international cooperation can bring to bear.”
“This international organized crime ring targeted some of the most vulnerable of our population. It's important that we send a message to criminals that the safety of everyone in our community matters,” said San Diego Police Chief David Nisleit. “I want to thank the investigators and prosecutors who continue to work toward justice on behalf of the victims.”
“According to allegations in the complaint, the defendants victimized some of our most vulnerable citizens and targeted relief programs during the height of the COVID-19 pandemic,” said Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation's Los Angeles Field Office. “One of our main duties as financial investigators is to take the profit out of crime and hold criminals accountable for their actions, and that’s what this investigation is about. IRS-CI will continue to work closely with our partners locally and internationally to locate and hold criminal organizations accountable for their crimes.”
Assistance was provided by the Romanian National Police (Service for Combatting Organized Criminal Groups and Service for Combatting Organized Crime Valcea) and the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime). The Justice Department’s Office of International Affairs also provided significant assistance.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS Case Number: 23MJ0474-MSB
Eduard Ghiocel (1) Age: 47 Transient, Romanian
aka Eduard Alexandru, aka “Filica”
Floarea Ghiocel (2) Age: 48 Transient, Romanian
aka Floarea Alexandru
Gabriel Ghiocel (3) Age: 25 Transient, Romanian
Marius Ghiocel (4) Age: 33 Transient, Romanian
Larisa Ghiocel (5) Age: 24 Transient, Romanian
Argentina Alexandru (6) Age: 31 Transient, Romanian
SUMMARY OF CHARGES
Title 18 U.S.C. § 1956(h) and Title 18 U.S.C. § 1956(a)(2)(A) — Conspiracy to Transport Funds to Promote Unlawful Activity
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
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Police Department
Internal Revenue Service
California Employment Development Department Investigative Division
U.S. Department of Homeland Security
Department of Labor Office of Investigator General
Narcotrafficker Pleads Guilty to International Cocaine Trafficking ConspiracyRead the Press Release
NEWS RELEASE SUMMARY – March 8, 2023
SAN DIEGO – A narcotrafficker pleaded guilty today to international cocaine trafficking conspiracy.
According to court documents, beginning in the 1980s through 2017, Raul Flores-Hernandez, aka El Tio, 70, led a drug-trafficking organization based in Mexico’s Jalisco State that trafficked cocaine from South America to Mexico for subsequent importation into the United States. He leveraged his business connections to coordinate the transportation of substantial quantities of cocaine from Colombia, Peru, and Bolivia to ports in Mexico, from which they were transported by land to and across the U.S. border.
In July 2017, Mexican authorities arrested Flores-Hernandez at the request of the United States. He was extradited from Mexico to the United States in February 2021.
Flores-Hernandez pleaded guilty to one count of conspiracy to distribute five kilograms or more of cocaine, knowing and intending that it would be imported into the United States. He is scheduled to be sentenced on June 14 and faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Organized Crime and Drug Enforcement Task Force (OCDETF) supported this case.
The DEA Los Angeles and San Diego Field Divisions, FBI Washington Field Office, and HSI San Diego Field Office are investigating the case. Customs and Border Protection in San Diego provided substantial assistance.
The Justice Department thanks Mexican authorities for their assistance in securing the arrest and extradition of Flores-Hernandez.
Assistant U.S. Attorney Kyle Martin for the Southern District of California, Acting Deputy Chief Katharine Wagner and Trial Attorney Melanie Alsworth of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance.
DEFENDANT Case Number 17CR0051 (BAH)
Raul Flores-Hernandez Age: 70 Guadalajara, MX
SUMMARY OF CHARGES
International Conspiracy to Distribute Controlled Substances – 21 U.S.C. §§ 959(a), 960(a)(3), 960(b)(1), and 963
Maximum penalty: Life in Prison and $10 million fine
AGENCIES
Homeland Security Investigations
Drug Enforcement Administration
Federal Bureau of Investigation
Customs and Border Protection
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.
Narcotrafficker Pleads Guilty to International Cocaine Trafficking ConspiracyRead the Press Release
A narcotrafficker pleaded guilty today to international cocaine trafficking conspiracy.
According to court documents, beginning in the 1980s through 2017, Raul Flores-Hernandez, aka El Tio, 70, led a drug-trafficking organization based in Mexico’s Jalisco State that trafficked cocaine from South America to Mexico for subsequent importation into the United States. He leveraged his business connections to coordinate the transportation of substantial quantities of cocaine from Colombia, Peru, and Bolivia to ports in Mexico, from which they were transported by land to and across the U.S. border.
In July 2017, Mexican authorities arrested Flores-Hernandez at the request of the United States. He was extradited from Mexico to the United States in February 2021.
Flores-Hernandez pleaded guilty to one count of conspiracy to distribute five kilograms or more of cocaine, knowing and intending that it would be imported into the United States. He is scheduled to be sentenced on June 14 and faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Randy Grossman for the Southern District of California, Administrator Anne Milgram of the DEA, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.
The Organized Crime and Drug Enforcement Task Force (OCDETF) supported this case.
The DEA Los Angeles and San Diego Field Divisions, FBI Washington Field Office, and HSI San Diego Field Office are investigating the case. Customs and Border Protection in San Diego provided substantial assistance.
The Justice Department thanks Mexican authorities for their assistance in securing the arrest and extradition of Flores-Hernandez.
Acting Deputy Chief Katharine Wagner and Trial Attorney Melanie Alsworth of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorney Kyle Martin for the Southern District of California are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance.
Romanian Citizen Arrested and Charged in $5 Million Covid Relief FraudRead the Press Release
SAN DIEGO – Constantin Sandu of Romania, a suspected organized crime figure, was arrested and charged in a federal complaint today with masterminding a scheme to steal more than $5 million in California unemployment insurance benefits intended to help workers impacted by the pandemic.
According to the complaint, Sandu conspired with 214 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.
“According to the complaint, this defendant presided over a vast network of international swindlers to exploit a program meant to help struggling California workers survive the pandemic,” said U.S. Attorney Randy Grossman. “The pandemic may be waning, but we are still aggressively investigating allegations of COVID relief fraud. The scheme alleged in this case diverted millions of dollars from those who truly needed it.”
Grossman thanked the prosecution team and the investigating agencies for their excellent work on this case.
Sandu was arrested by FBI San Diego on March 1, 2023, at the Imperial Beach Border Patrol Station. He is scheduled to make his first appearance in federal court this afternoon before U.S. Magistrate Judge Allison H. Goddard at 2 p.m.
“FBI San Diego would like to thank our local, state, and federal law enforcement partners for addressing this problem in a unified effort,” said Special Agent in Charge Stacey Moy of the FBI San Diego Field Office. “These benefits were offered with the intention of helping struggling families stay afloat and were a critical lifeline for many. Sandu’s alleged greed diverted those funds for his own personal gain. The FBI and our partners will continue to identify those who commit pandemic-related fraud and hold them accountable for their crimes.”
“The San Diego Police Department is committed to investigating and solving crimes committed by organized crime rings. The arrest of Constantin “Bobi” Sandu is the culmination of a yearlong investigation by Economic Crimes Unit detectives and multiple law enforcement partners. We will continue to collaborate with these partners to arrest the over 200 suspects involved in this investigation.”
“IRS Criminal Investigation and our law enforcement partners will continue to investigate individuals and organizations who target relief programs as a way to steal funds from critical programs,” said Special Agent in Charge Tyler Hatcher of the Los Angeles Field Office. “It is especially egregious when criminal organizations think they can profit off of the United States and steal funds that are intended to aid citizens during times of need. IRS-CI is committed to aggressively investigating these crimes and bringing those criminal organizations to justice.”
The complaint said that beginning in fall of 2020 and continuing until late summer of 2022, Sandu and hundreds of unnamed co-conspirators 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 in the various W2’s 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 unnamed co-conspirators to fraudulently obtain no less than $5,207,687.00 in California Unemployment Insurance benefits.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANT Case Number: 23-mj-00697-AHG
Constantin Sandu,
aka Bobi Sandu, aka Ionut Mihai Age: 33 Transient, RomanianSUMMARY OF CHARGES
Title 18, U.S.C. § 1349 and 1343 - Conspiracy to Commit Wire Fraud; U.S.C. § 981(a)(1)(C) Criminal Forfeitures; Title 28, U.S.C. § 2461(c) Civil Forfeitures
Maximum penalty: Thirty years in prison, $1 million fine
AGENCIES
Federal Bureau of Investigation
San Diego Police Department Economic Crimes Unit
Internal Revenue Service
California Employment Development Department Investigative Division
U.S. Department of Homeland Security
Department of Labor Office of Investigator General
Drug Trafficking Organizer Sentenced to 20 Years in PrisonRead the Press Release
SAN DIEGO – Terrance Deandre Ellison was sentenced in federal court today to 20 years in prison for drug-trafficking crimes, including importation of methamphetamine and conspiring with others to import methamphetamine from Mexico into the United States.
During a week-long jury trial in May 2022, prosecutors proved that Ellison was a drug trafficker who recruited, organized, and operated a network of drug importers in connection with his methamphetamine distribution activities in San Diego County and elsewhere between March 2020 and May 2020. The jury found that Ellison used drug-addicted people to travel to Mexico and smuggle methamphetamine across the border as “body carriers” in exchange for cash payment or drugs after delivery of the methamphetamine to Ellison in the United States.
At Ellison’s behest, the “body carriers” concealed methamphetamine either inside their bodies or strapped to the outside. At trial, prosecutors proved that, on several occasions, Ellison went to Mexico, met with “body carriers” at a hotel or other location, purchased methamphetamine from drug suppliers in Mexico, packaged the methamphetamine for concealment, and directed the individuals how to conceal and cross the drugs into the United States. Once the “body carriers” crossed the border without getting caught, they would meet Ellison and travel to other locations to remove the drugs from their bodies. The “body carriers” then provided the drugs to Ellison.
After several of his “body carriers” were arrested, Ellison choseto import the drugs himself. In May 2020, Ellison concealed the drugs inside a natural void behind the glove compartment of his rental car and entered the United States at the Otay Mesa, California Port of Entry. However, he was caught at the border and officers found the methamphetamine packages concealed inside.
At trial, prosecutors presented incriminating evidence, including voluntary statements made by Ellison during an interview with investigators; text messages from his cellular phone; and border crossing records of Ellison with his “body carriers.” The jury deliberated and found Ellison guilty of four counts, including conspiracy to possess methamphetamine with the intent to distribute, possession of methamphetamine with the intent to distribute, conspiracy to import methamphetamine, and importation of methamphetamine.
At today’s sentencing hearing, U.S. District Judge William Q. Hayes found that Ellison had an aggravating role in the offenses because he was a leader and organizer, and the offenses were otherwise extensive. Judge Hayes also found that Ellison had obstructed justice when he testified at trial because Ellison gave false testimony on material matters with willful intent. In balancing the aggravating and mitigating factors, Judge Hayes concluded that a sentence of 20 years was sufficient but not greater than necessary. Judge Hayes also placed Ellison on a 10-year term of supervised release, which will commence after Ellison has served his prison sentence.
“This sentence sends a message to any drug trafficker operating drug importation and distribution networks in this district that you will receive a significant sentence for directing those who import dangerous narcotics,” said U.S. Attorney Randy S. Grossman.
Grossman thanked the prosecution team and Homeland Security Investigations for their excellent work on this case.
“HSI will direct its full range of investigative authorities towards those who smuggle deadly drugs across the border and into our communities,” said Chad Plantz, special agent in charge of HSI San Diego. “This significant sentence demonstrates the U.S. government’s resolve with holding drug traffickers accountable for their actions.”
DEFENDANT Case Number 20cr1788-WQH
Terrance Deandre Ellison Age: 43 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Possess Methamphetamine with Intent to Distribute – Title 21, U.S.C., Sections 841(a)(1) and 846
Possession of Methamphetamine with Intent to Distribute – Title 21, U.S.C., Section 841(a)(1)
Conspiracy to Import Methamphetamine - Title 21, U.S.C., Sections 952, 960, and 963
Importation of Methamphetamine - Title 21, U.S.C., Sections 952 and 960
Maximum penalty as to each charge: Life in prison and $10 million fine
AGENCY
Homeland Security Investigations
San Diego Resident Charged for Maintaining a Steroid Distribution Center in Spring ValleyRead the Press Release
SAN DIEGO – The U.S. Attorney’s Office unsealed a complaint today charging San Diego resident Edgar Lopez Feliciano with maintaining a steroid distribution center in Spring Valley. As detailed in the complaint, Feliciano’s network is allegedly involved in the creation and distribution of significant quantities of anabolic steroids throughout the United States.
In a coordinated takedown that took place today, federal, state, and local law enforcement agents and officers arrested Feliciano and executed search warrants at the steroid distribution center in Spring Valley and Feliciano’s personal residence in Poway. During the searches, agents seized a large amount of anabolic steroids - estimated to be hundreds of thousands of individual dosage-units. They also seized more than $25,000 in U.S. currency, six Rolex watches and other luxury jewelry, and multiple high-end luxury vehicles including a 2023 Mercedes Maybach S580 and a 2023 Mercedes AMG G63.
During the investigation, agents learned that Feliciano allegedly purchases his anabolic steroid powders from sources of supply located in China and Turkey and then uses the steroid powders to create and manufacture anabolic steroids for distribution throughout the United States through the U.S. Mail system. According to postal meter readings, law enforcement officials estimate that Feliciano distributed more than 10,000 parcels containing anabolic steroids between June 2022 and August 2022 and until his arrest continued to distribute anabolic steroids from the distribution center in Spring Valley on a daily basis.
According to the complaint, between 2018 and 2021, agents identified multiple financial accounts held by Feliciano with the total amount of deposits into these accounts being approximately $7 million, and more than $2.5 million in wire transfers sent from these accounts to overseas entities believed to be involved in the production and distribution of Schedule III Controlled Substances.
“The complaint alleges a national steroid distribution network operating in the San Diego community,” said U.S. Attorney Randy Grossman. “We will continue to work closely with our federal and local partners to prosecute those who traffic in controlled substances using our U.S. mail system.”
Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“According to the complaint, the defendant was manufacturing and trafficking illicitly produced anabolic steroids,” said DEA Special Agent in Charge Shelly Howe. “DEA and our state and local partners will continue to actively pursue drug traffickers whether they are trafficking illicit drugs or controlled substances.”
“The best way to disrupt and dismantle any criminal organization is to follow the money and take ill-gotten gains,” said Tyler Hatcher Special Agent in Charge of IRS Criminal Investigation's Los Angeles Field Office, “IRS Criminal Investigation is proud to work with our partners in investigating this case.”
“This investigation shows our persistence and dedication in protecting the U.S. Mail from criminal misuse and disrupting the flow of these dangerous drugs being trafficked in our communities,” said Carroll Harris, Inspector in Charge of the Los Angeles Division. “The arrest of Feliciano demonstrates our collaborative efforts to continue to work closely with our partners to identify and prosecute those who are seeking a profit at the expense of the public safety.”
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.
DEFENDANT Case Number 23MJ0630-BLM
Edgar Lopez Feliciano Age: 54 San Diego, CA
SUMMARY OF CHARGES
Maintaining a Drug-Involved Premises – Title 21, U.S.C., Section 856(a)(1) and (2)
Maximum penalty: Twenty years in prison and $500,000 fineAGENCY
Drug Enforcement Administration
Internal Revenue Service
United States Postal Inspection Service
*The charges and allegations contained in a complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Authorities Make Huge Methamphetamine Seizure at Border; Tijuana Man Arrested and ChargedRead the Press Release
SAN DIEGO – A Tijuana man appeared in federal court late yesterday to face federal drug trafficking offenses following the seizure of more than 2,200 pounds of methamphetamine and 53 pounds of fentanyl discovered in the Chevy van he was driving as he attempted to cross into the United States through the Otay Mesa Port of Entry Cargo Facility.
It is believed to be one of the largest methamphetamine seizures in San Diego County.
The complaint alleges that on February 22, 2023, at approximately 3:47 p.m., the 2005 Chevy Van applied for entry into the United States through the Otay Mesa Commercial Port of Entry. A Customs and Border Protection Officer referred the vehicle to a secondary inspection area based on a computer-generated referral. Officers found 63 packages in the rear cargo area of the van concealed within cardboard boxes. The packages contained substances that field-tested positive for methamphetamine and fentanyl. Law enforcement then arrested the driver, Andres Gonzales Soriano.
“This is huge quantity of dangerous drugs that is no longer destined for the streets of San Diego and beyond,” said U.S. Attorney Randy Grossman. “A seizure of this magnitude saves lives.” Grossman thanked the prosecution team as well as Customs and Border Protection and Homeland Security Investigations for their excellent work on this case.
“These drugs are a blight that destroy lives and fuel crime and violence in our communities,” said Chad Plantz, special agent in charge, HSI San Diego. “This massive seizure likely saved lives and delivers a significant financial blow to the drug cartels.
“CBP officers are the front-line of stopping these dangerous drugs from entering the U.S.” said Sidney K. Aki, CBP Director of Field Operations in San Diego. “Keeping our communities safe is among our top priorities, and this major interdiction will prevent its negative impacts and the proceeds from funding transnational criminal organizations.”
DEFENDANTS Criminal Case No: 23-mj-0611-BLM
Andres Gonzalez Soriano 24 Tijuana
SUMMARY OF CHARGES
Importation of Methamphetamine and Fentanyl, in violation of Title 21 U.S.C. §§ 952 and 960
Maximum Penalty: Twenty years in prison, $1 million fineAGENCY
United States Customs and Border Protection
Homeland Security Investigations
Drug Enforcement Administration
Border Crime Suppression Team
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Wells Fargo Personal Banker Sentenced for Money Laundering and Bank FraudRead the Press Release
SAN DIEGO – Leopoldo Lora-Aguilera, a former Wells Fargo personal banker, was sentenced in federal court today to 33 months in custody for money laundering conspiracy and bank fraud.
Aguilera was arrested by FBI agents for his participation in an international money laundering organization based in Tijuana, Mexico which operated primarily in San Diego. The criminal organization laundered funds in excess of $12.5 million dollars before being disrupted by the FBI.
According to the plea agreement and other public records, Aguilera abused his position of trust as a personal banker with Wells Fargo Bank by opening bank accounts with false identities and wire transferring millions of dollars to Mexico. Aguilera conducted these transactions in exchange for thousands of dollars in cash payments from the criminal organization. The FBl's investigation linked these funds to the sale of narcotics by a Mexican drug cartel, specifically the sale of multi-kilogram amounts of fentanyl in the Midwest.
Aguilera admitted to opening 26 bank accounts for the money laundering organization, including eleven that were created by Aguilera using fictitious identities. Specifically, Aguilera used his position as a personal banker with Wells Fargo Bank to knowingly enter false names, passport numbers, and dates of birth on the fictitious bank accounts. These 11 fictitious accounts alone were used by the criminal organization to wire transfer a total of $3.8 million to Mexico. A majority of those wire transfers were conducted by Aguilera himself. Aguilera's use of these fictitious accounts was identified by Wells Fargo and brought to the attention of the FBI. Agents arrested Aguilar and disrupted the scheme shortly after.
In conjunction with Aguilera's arrest, the FBI identified and seized 17 bank accounts that belonged to the money laundering organization containing in excess of $230,000. Further investigation by the FBI resulted in a second round of arrests of Aguilera’s co-conspirators in the Spring of 2022. To date, the FBI has arrested Melisa Valdivia Diaz, Alma Leticia Murillo Valdivia, and Jorge Alberto Ortiz Borrego for participating in the multi-million-dollar money laundering scheme. All three defendants have pleaded guilty in a related case, admitting they participated in the conspiracy. Sentencings are pending.
“Money launderers are a lifeblood of the cartels,” said U.S. Attorney Randy Grossman. “Today’s sentencing underscores that money launderers are key players in the cartel structure and will be treated as such.”
Grossman thanked the prosecution team and the FBI San Diego Cross Border Violence Task Force for their excellent work on this case.
“This case highlights the FBI’s dedication to holding all individuals accountable who make space for the cartels to function in our communities,” said Special Agent in Charge Stacey Moy of the FBI San Diego Field Office. “Although Lara-Aguilera was convicted on the financial aspect of these crimes, his actions directly facilitated the trafficking of fentanyl and other dangerous narcotics throughout our country. The FBI is committed to investigating all who manipulate U.S. financial systems to enable money laundering and drug trafficking.”
This case is the result of efforts by the U.S. Attorney’s Office and the FBI San Diego Cross Border Violence Task Force, who were assisted by Wells Fargo Bank's internal investigators in Arizona and California. This case is being prosecuted by Assistant U.S. Attorney Blanca Quintero.
DEFENDANT Case Number 19-CR-1955-BAS
Leopoldo Lora-Aguilera Age: 58 Chula Vista, CA
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Sections 1956(h) and 1957
Maximum penalties: Twenty years in prison and $500,000 fine
Bank Fraud – Title 18 U.S.C., Section 1344
Maximum Penalties: Thirty years in prison and $1 million fineAGENCY
FBI San Diego Cross Border Violence Task Force
Former Assistant Chief of Staff of the U.S. Navy’s Seventh Fleet Sentenced to 30 Months in Prison in Massive Corruption ScandalRead the Press Release
SAN DIEGO – U.S. Navy Captain (Retired) Jesus Vasquez Cantu was sentenced today to 30 months in prison by a federal district judge in San Diego on charges that he received lavish bribes from foreign defense contractor Leonard Francis, who plied him with luxurious hotel stays, travel, and prostitutes. Cantu was also ordered to pay a criminal fine of $75,000 and restitution to the U.S. Navy in the amount of $100,000.
“Mr. Cantu entered a den of corruption and in the process repudiated his oath and betrayed the sacred trust placed in him by the American people,” said U.S. Attorney Randy Grossman. “The Department of Justice and our agency partners will never relent in our pursuit of justice for schemes that dishonor our armed forces.”
Grossman thanked the prosecution team and agency partners for their excellent work on this case.
In his plea agreement, Cantu acknowledged that Francis took him and others out for drinks and dinners at posh restaurants, nightclubs and karaoke bars and paid for lavish hotel rooms and the services of prostitutes on numerous occasions in 2012 and 2013, during which time Cantu was the deputy commander, MSC Far East in Singapore, in charge of logistical sustainment to Navy ships operating in the Seventh Fleet. Cantu admitted that in return for these luxuries, he provided proprietary U.S. Navy information to Francis, and that he used his power and influence to help Francis and his company, Glenn Defense Marine Asia, known as GDMA, in its ship husbanding business.
Cantu also admitted in his plea agreement that, in 2007, when he was the Assistant Chief of Staff for Logistics for the Commander of the U.S. Navy’s Seventh Fleet aboard the USS Blue Ridge, he and others participated in a bribery conspiracy with Francis. Cantu and other members of the conspiracy accepted an ongoing stream of bribes from Francis, and in exchange, Cantu was influenced in the performance of his official Navy responsibilities and acted in violation of his official Navy duties.
“Mr. Cantu's sentencing holds him accountable for crimes he committed while serving as a senior Naval officer. His unconscionable criminal activity profoundly dishonored his oath, and unquestionably failed to meet the exacting standards required of all U.S. military personnel,” said Kelly P. Mayo, the Director of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS). “DCIS and its investigative partners will continue their tireless efforts to bring to justice those who choose a similar illicit and dishonorable path regardless of tenure or position.”
“Mr. Cantu betrayed his oath to his country and abused his position with the Navy by accepting lavish gifts from GDMA, including hotel rooms, entertainment, alcohol, and the services of prostitutes, in exchange for divulging sensitive information that helped Leonard Francis defraud the United States,” said NCIS Director Omar Lopez. “NCIS and our law enforcement partners remain committed to fully investigating all allegations of conspiracy, bribery and corruption that threaten the integrity of the Department of the Navy.”
The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher, Valerie Chu, Michelle Wasserman, and David Chu of the U.S. Attorney’s Office for the Southern District of California.
DEFENDANT Case Number: 17-CR-2376
Captain (Retired) Jesus Vasquez Cantu Age 64 Silverdale, Washington
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
Maximum Penalty: Five years in prison, a $250,000 fine or twice the gross pecuniary gain or twice the gross pecuniary loss, whichever is greaterINVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Political Consultant Sentenced for Scheme Involving Illegal Foreign Campaign Contribution to 2016 Presidential CampaignRead the Press Release
A Texas man was sentenced today to 18 months in prison for his role in funneling illegal foreign campaign contributions from a Russian national to a 2016 presidential campaign.
According to court documents, Jessie R. Benton, 45, of The Woodlands, schemed with another political advisor to funnel political contributions to a 2016 presidential campaign from a Russian national seeking to meet and take a picture with the presidential candidate. Benton arranged for the Russian national – whose nationality Benton concealed from the campaign and the candidate – to attend a campaign fundraising event and to take a picture with the candidate.
As such attendance and engagement required a contribution, Benton caused the Russian national to wire $100,000 to Benton’s political consulting firm to make an illegal foreign contribution to the campaign. To disguise the scheme, Benton created a fake invoice, which falsely identified the funds as payment for consulting services. Benton acted as a straw donor and contributed $25,000 of the Russian national’s money to the campaign, falsely identified himself as the contributor, and pocketed the remaining $75,000. Because Benton falsely claimed to have given the contribution himself, the relevant campaign entities unwittingly filed reports with the Federal Election Commission (FEC) that inaccurately reported Benton – instead of the Russian national – as the source of the funds.
In November 2022, Benton was convicted at trial of conspiring to solicit and cause an illegal campaign contribution by a foreign national, effecting a conduit contribution, and causing false records to be filed with the FEC.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Randy Grossman for the Southern District of California, U.S. Attorney Matthew M. Graves for the District of Columbia, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Stacey Moy of the FBI San Diego Field Office made the announcement.
The FBI San Diego Field Office investigated the case.
Trial Attorneys Rebecca G. Ross and Michelle K. Parikh of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Michelle L. Wasserman for the Southern District of California, while serving in her capacity as a Special Assistant U.S. Attorney for the District of Columbia, prosecuted the case.
Attempted Child Sex Trafficker Convicted by Federal JuryRead the Press Release
SAN DIEGO – Keenon Green was convicted by a federal jury on Wednesday of Attempted Sex Trafficking of Children and Attempted Enticement of a Minor.
The jury trial began on Monday, and the jury received the case on Wednesday. The jury deliberated for an hour and fifteen minutes before announcing they had reached a verdict, finding Green guilty of both charges.
According to the evidence presented at trial, which included social media evidence, cell phone evidence, body-worn camera surveillance, and witness testimony, Green relentlessly sent direct messages to a social media user he knew as “Lexi” on Instagram, attempting to recruit her into prostitution despite responses from Lexi stating that she was in high school, that she was delayed responding to his messages because she was doing her biology homework, and then explicitly telling Green that she was 16 years old. Green continued to try to recruit Lexi to provide commercial sex services, advising her that he could provide protection on “the blade,” a dangerous destination for commercial sex activity that Green referred to as a “hoe stroll,” and that she would have to “only work the blade for a week max.” After that, Green’s messages indicated that he would provide her with false identification, post her advertisements on commercial sex websites, and then she could “charge 350 a hour and only be in there 30 mins max.” Because he believed her to be only 16 years old, he also offered to teach her how to drive. In exchange for his protection as a pimp, Lexi would be expected to earn $500 a night as a prostitute, and $1000 a night if they were out of town.
Ultimately, after working to recruit online Lexi for almost a month, Green arranged to meet her in person and bring her to Orange County, where business was “hella good.” Green told Lexi to bring “provocative stuff” and “heels” for the trip. The evidence presented showed that Green planned to have Lexi engage in commercial sex dates until she earned $1,000 for him before returning her to San Diego on Monday to attend high school. Unfortunately for Green, “Lexi” was an undercover deputy with the San Diego Sheriff’s Department. When Green arrived at the meeting point with feminine care items in his trunk, including hair products and Vagisil, he was greeted by law enforcement instead.
Post-arrest, Green acknowledged that he was “chasing money” and that as a pimp, he “ran” seven to nine other women. The evidence presented at trial reflected that Green’s recruitment and enticement efforts extended beyond “Lexi”; he reached out to other Instagram users simultaneously, describing what he could offer as a pimp and telling them their “anatomy is the most valuable thing on this earth” and he could help them “use it wisely.”
“Trafficking children for commercial sex is a scourge on our community,” said U.S. Attorney Randy Grossman. “This case demonstrates that proactive law enforcement efforts can stop these crimes before they happen, as well as holding offenders accountable. The U.S. Attorney’s Office is committed to working with law enforcement partners to prevent trafficking and deliver justice for victims.” Grossman thanked the prosecution team, the San Diego Human Trafficking Task Force, Homeland Security Investigations, and the San Diego Sheriff’s Department for their excellent work on this case.
“Human trafficking is a highly predatory crime and can be violent. Offenders prey upon youth and the most vulnerable in our community. The Sheriff's Department will continue to work with our local, state, federal and tribal partners to rescue and protect victims of this terrible crime."
“This conviction closes the door on this human trafficker responsible for wreaking havoc on the lives of young women,” said Chad Plantz, special agent in charge, HSI San Diego. “Unfortunately, we know there are still traffickers out there looking to exploit the most vulnerable among us. Cases like this one serve to strengthen our resolve to protect and defend the victims.”
DEFENDANTS Case Number 22-cr-187-CAB
Keenon Green Age: 35SUMMARY OF CHARGES
Attempted Sex Trafficking of Children – Title 18, U.S.C., Section 1591(a)
Minimum Penalty: 10 years
Maximum penalty: Life Imprisonment and $250,000 fineAttempted Enticement of a Minor – Title 18, U.S.C., Section 2422(b)
Minimum Penalty: 10 years
Maximum Penalty: Life Imprisonment and $250,000 fineAGENCIES
San Diego Human Trafficking Task Force
Homeland Security Investigations
San Diego Sheriff’s DepartmentThis 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.
Leader of Criminal Organization Sentenced to Six Years in Prison for Role in Operation of Illegal Gambling DensRead the Press Release
SAN DIEGO – Long Ngoc Tran (42) was sentenced in federal court yesterday to 72 months in prison for his role in the operation of dozens of illegal gambling dens that fostered drug trafficking, violent crime, and gang activity within a small San Diego neighborhood.
On April 9, 2021, Tran was indicted for Conspiracy to Operate an Illegal Gambling Business and Maintaining a Drug-Involved Premises; in violation of 18 U.S.C. § 371; Operating an Illegal Gambling Business; in violation of 18 U.S.C. § 1955; and Maintaining a Drug-Involved Premises; in violation of 21
U.S.C. § 856(a)(1). On April 14, 2021, Tran was arrested, made his initial appearance, and pled not guilty.
On July 28, 2022, pursuant to a plea agreement, Tran pled guilty to the first three counts of the Indictment, admitting to committing all three crimes.
During his sentencing, United States District Court Judge Marilyn Huff noted that Tran was affiliated with numerous gambling premises, and that drug trafficking was prevalent at these dens. Judge Huff also took into consideration Tran’s prior 2015 state court conviction for operating or maintaining a drug house. According to the indictment, Tran operated at least nine illegal gambling dens.
Based on publicly available filings, as far back as 2013, San Diego Police Department (SDPD) Street Gang Unit Detectives began to observe a steady increase in the prevalence of illegal gambling dens. Investigators learned that Asian gang members and associates were often involved in operating these illegal gambling dens and that methamphetamine was being used and sold at these illegal gambling dens. The illegal gambling dens were often located inside houses, apartments, and outbuildings in residential neighborhoods predominantly in City Heights, in the East San Diego area. It was common for gambling den owners to pay rent in cash to the owners of these properties and, in some cases, a percentage of the profits, as incentive to cast a blind eye to all the foot traffic.
In 2015, these locations began to draw more attention due to the frequency of violent crimes occurring in and around them, including robberies, shootings, stabbings, and assaults. Investigators learned that the patrons were often gang members, career criminals, habitual drug users, and fugitives.
In the fall of 2019, the San Diego Violent Crime Task Force - Gang Group (VCTF-GG) initiated an investigation dubbed “Marble Lion,” into the illegal gambling dens operating in the City Heights neighborhood of San Diego, often within homes and small businesses. At the time, more than 24 such dens were operating on any given day. These gambling dens attracted other criminal activity, including the use and distribution of illegal of narcotics, sales of weapons, and prostitution.
From July 2018 through July 2020, there were over four hundred crime cases and over three hundred arrests within 150 feet of the thirty-six illegal gambling locations investigated, causing this area to be the highest crime neighborhood in the East San Diego area. Law Enforcement investigated homicides, shootings, stabbings, felony assaults, robberies, arson, auto thefts, burglaries, identity theft, firearm possession, drug sales/possession, and other crimes in and around these locations.
The illegal gambling dens were equipped with electronic gambling machines which were programmed with several games of chance such as poker, blackjack, keno, jacks or better, and slot games. Most locations of these establishments were open 24 hours a day, seven days a week, with some shutting down in the early morning hours and starting up again in the afternoons. Investigators were also aware that most of these locations were outfitted with exterior and interior video surveillance cameras, which were often monitored remotely by the establishment owners and managers.
Investigators learned that these illegal gambling dens were also drug involved premises, commonly involving methamphetamine use and sales, as well as other drugs, which were sold by both employees and independent drug dealers. It was also common for employees to hand out small amounts of methamphetamine and “comp” customers who were playing. One owner described how he would give methamphetamine to patrons because it drew them to the location and kept them playing on gambling machines.
Between the fall of 2019 and the spring of 2021, VCTF-GG conducted more than 30 controlled drug and weapons purchases, performed extensive surveillance, and executed numerous search warrants. This culminated, in April 2021, with a large-scale midnight arrest and search operation involving more than 450 law enforcement officers from the FBI, HSI, BOP, DEA, ATF, IRS, San Diego Police Department, San Diego Sheriff’s Office, Chula Vista Police Department, National City Police Department, California Department of Corrections & Rehabilitation, and the San Diego District Attorney’s Office. This operation alone resulted in 37 arrests, the seizure of 287 gambling machines, pound quantities of methamphetamine, 2 firearms, and over $200,000. Subsequent operations have resulted in total arrests of more than 100 federal and local subjects, as well as total seizures of 13 pounds of methamphetamine, 47 firearms, over $590,000, over 400 gambling machines, and ounce quantities of cocaine, fentanyl, heroin, and MDMA.
On April 9, 2021, the Grand Jury returned 17 related indictments (21CR1109-H through 21CR1124-H) charging 47 defendants for offenses related to illegal gambling, firearm offenses, and drug distribution.
“This operation shows the real public safety benefits that can be achieved through strong local and federal law enforcement partnerships,” said U.S. Attorney Randy Grossman. “It is telling and rewarding that law- abiding residents noticed a positive impact on their communities and have expressed gratitude for law enforcement’s efforts.” Grossman praised the federal and county prosecutors as well as the team of FBI Special Agents, San Diego Police Department detectives/officers and other law enforcement agencies who worked so hard on this investigation.
"Today, the sentencing of Tran represents not only the end of the illegal gambling network he operated, but the termination of all violent crimes perpetrated due to the existence of these illegal gambling dens,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “Our focus is and always will be on protecting our communities from violence. We thank our partners that make up the Violent Crime Task Force – Gang Group for their coordination in ensuring that Tran returns to where he belongs—behind bars.”
“The top priority of the San Diego Police Department is violent crime. The success of this operation means safer neighborhoods for our City Heights community and our city as a whole,” said Police Chief David Nisleit. “I want to thank our officers and partner agencies for their hard work on this investigation.”
“By working together, we were able to bring peace back to a neighborhood that was being overrun with crime because of these illegal gambling dens, which are magnets for gang violence,” said San Diego County District Attorney Summer Stephan. “The District Attorney’s Office investigated and filed criminal charges against 30 defendants on the state side for a murder, robberies, shootings, illegal possession of firearms, and drug sales. I am grateful to the U.S. Attorney, FBI, San Diego Police Department and the Violent Crimes Task Force for their commitment to shutting down these illegal operations.”
DEFENDANTS
Case Number 21CR1109-H
Name
Age
Hometown
Sentence
LONG NGOC TRAN (1),aka “Long Tu,”
42
San Diego
72 months
TUNG THANH NGUYEN (2),aka “Ang,”
52
San Diego
30 months
THANH LAN THI NGUYEN (3),aka “Lan,”
43
San Diego
Case still pending
DENNIS MICHAEL DIBLASI (4),aka “Drago,”
49
San Diego
21 months
WAYNE JONATHAN CLAYTON Jr. (5),aka “G-Wayne,”
52
San Diego
18 months
YVONNE MICHELLE AGUILAR (6),aka “Michelle,”
43
San Diego
Case still pending
ROBERT JAMES WRIGHT (7),
40
San Diego
Case still pending
TAM ONH ONG (8), aka “Fireball,”
45
San Diego
Case still pending
SAENGAMPHAY M. PHOMMASANE (9) aka “Melinda,”
40
San Diego
Case still pending
KAREN RENE ANN PRANGSAMPHAN- PORTER (10), aka “KK,”
33
Arizona
15 months home confinement
SUMMARY OF CHARGES
Conspiracy (Title 18, U.S.C., Sec. 371 – Conspiracy) Illegal Gambling Business (Title 18, U.S.C., Sec. 1955)
Maintaining a Drug-Involved Premises (Title 21, U.S.C., Sec. 856(a)(1)) Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))
Maximum Penalties: For Conspiracy Charge: Five years’ imprisonment and a $250,000 fine.
Maximum Penalties: For Illegal Gambling Business Charge: Five years’ imprisonment and a $250,000 fine. Maximum Penalties: For Maintaining Drug Involved Premises Charges: Five years’ imprisonment and a $500,000 fine.
Maximum Penalties: For Distribution of Methamphetamine Charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
Case Number 21CR1110-H
Name
Age
Hometown
Sentence
JIMMY HUI BANH (1),
45
San Diego
57 months
JOSE ANTONIO TORRESDAY (2),aka “Pepe,”
31
San Diego
Time served
TINA SENKET (3),
35
San Diego
387 days
JIMMY LU (4),aka “Nam Van Lu,” aka “Nam Thao,”
56
San Diego
Case still pending
ARCADIO MAMURI CRUZ (5),aka “Bangsta,” aka “Archie,”
38
San Diego
Case still pending
MARK ANONAS ARCELAO (6), aka “Lil Tipsy,”
30
Jacksonville, Florida
41 months
SUMMARY OF CHARGES
Conspiracy (Title 18, U.S.C., Sec. 371 – Conspiracy) Illegal Gambling Business (Title 18, U.S.C., Sec. 1955)
Maintaining a Drug-Involved Premises (Title 21, U.S.C., Sec. 856(a)(1)) Felon in Possession of a Firearm (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))
Maximum Penalties: For Conspiracy Charge: Five years’ imprisonment and a $250,000 fine. Maximum Penalties: For Illegal Gambling Business Charge: Five years’ imprisonment and a $250,000 fine.
Maximum Penalties: For Maintaining Drug Involved Premises Charges: Five years’ imprisonment and a $500,000 fine.
Maximum Penalties: For Felon in Possession of Firearm Charges: Ten years’ imprisonment and a $250,000 fine.
Case Number 21CR1111-H
Name
Age
Hometown
Sentence
*TRI MINH VO, (1),
39
San Diego
fugitive
TIEN HONG HONG LE (2),aka “Mr. Le,”
59
Phoenix, AZ
24 months
DONG VAN NGUYEN (3),
45
San Diego
36 months
DANG VAN NGUYEN (4),
55
San Diego
Case still pending
MICHELLE SALVADORE EDWARDS (5),
49
San Ysidro
41 months
KHANG DINH NGUYEN (6), aka “K-Y,”
47
San Diego
Time served
LEETRI DANG (7),
38
San Diego
Time served
KE VAN TRAN (8), aka “Kevin,”
59
San Diego
Case still pending
KIARA PORSHA EASLEY (9),
30
San Diego
Time served
TO VAN LAI (10), aka “Took,”
44
San Diego
60 months
CU VAN HUYN (11), aka “Cucu,”
41
San Diego
Time served
DAPHNE NICOLE RIVERA (12),
47
El Cajon
33 months
WILLIAM VANNA BOUNSAVATH (13) aka “Ray Ray,”
36
San Diego
46 months
ALMA SOCORRO SILVA (14),
50
San Diego
Case still pending
TONY NGUYEN (15) aka “Lucky,”
42
San Diego
63 months
SUMMARY OF CHARGES
Conspiracy (Title 18, U.S.C., Sec. 371 – Conspiracy) Illegal Gambling Business (Title 18, U.S.C., Sec. 1955)
Maintaining a Drug-Involved Premises (Title 21, U.S.C., Sec. 856(a)(1)) Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))
Possession with Intent to Distribute Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))
Maximum Penalties: For Conspiracy Charge: Five years’ imprisonment and a $250,000 fine.
Maximum Penalties: For Illegal Gambling Business Charge: Five years’ imprisonment and a $250,000 fine. Maximum Penalties: For Maintaining Drug Involved Premises
Charges: Five years imprisonment and a $500,000 fine.
Maximum Penalties: For Possession with Intent to Distribute and Distribution of Methamphetamine Charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
Case Number 21CR1112-H
Name
Age
Hometown
Sentence
*LE THI LE (1), aka “Chi Le,”
72
San Diego
10 months
PHOUNG THANH BUI (2)
47
San Diego
40 months
SUMMARY OF CHARGES
Conspiracy (Title 18, U.S.C., Sec. 371 – Conspiracy) Illegal Gambling Business (Title 18, U.S.C., Sec. 1955)
Maintaining a Drug-Involved Premises (Title 21, U.S.C., Sec. 856(a)(1)) Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))
Maximum Penalties: For Conspiracy Charge: Five years’ imprisonment and a $250,000 fine. Maximum Penalties: For Illegal Gambling Business Charge: Five years’ imprisonment and a $250,000 fine.
Maximum Penalties: For Maintaining Drug Involved Premises Charges: Five years’ imprisonment and a $500,000 fine.
Maximum Penalties: For Distribution of Methamphetamine Charges: Forty years’ imprisonment with a mandatory minimum sentence of five years and a $5 million fine.
Case Number 21CR1113-H
Name
Age
Hometown
Sentence
ARTHUR MARCELINO CASTILLO
42
San Diego
51 months
SUMMARY OF CHARGES
Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))
Maximum Penalties: For Distribution of Methamphetamine Charge: life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
Case Number 21CR1114-H
Name
Age
Hometown
Sentence
*ENRIQUE SAMUEL DUENAS, aka “Kiki,”
30
San Diego
fugitive
SUMMARY OF CHARGES
Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))
Felon in Possession of a Firearm (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))
Importation of Methamphetamine (Title 21, U.S.C., Secs. 952 & 960)
Maximum Penalties: For Distribution of Methamphetamine Charges: Forty years’ imprisonment with a mandatory minimum sentence of five years and a $5 million fine.
Maximum Penalties: For Felon in Possession of Firearm Charges: Ten years’ imprisonment and a $250,000 fine.
Maximum Penalties: Importation of Methamphetamine Charges: life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
Case Number 21CR1115-H
Name
Age
Hometown
Sentence
JULIUS GREENOGE
41
San Diego
15 months
SUMMARY OF CHARGES
Felon in Possession of a Firearm (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))
Maximum Penalties: For Felon in Possession of Firearm Charge: 10 years’ imprisonment and a $250,000 fine.
Case Number 21CR1116-H
Name
Age
Hometown
Sentence
*MARTA LIDIA GUTIERREZ
29
San Diego
fugitive
SUMMARY OF CHARGES
Importation of Methamphetamine (Title 21, U.S.C., Secs. 952 & 960)
Maximum Penalties: Importation of Methamphetamine Charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
Case Number 21CR1117-H
Name
Age
Hometown
Sentence
*KEOUDONE INTHAVONG
49
San Diego
41 months
SUMMARY OF CHARGES
Possession with Intent to Distribute/Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))
Maximum Penalties: For Possession with Intent to Distribute and Distribution of Methamphetamine Charges: Forty years’ imprisonment with a mandatory minimum sentence of five years and a $5 million fine.
Case Number 21CR1118-H
Name
Age
Hometown
Sentence
*PHONETHIP PETE INTHAVONG
52
San Diego
40 months
SUMMARY OF CHARGES
Possession with Intent to Distribute (Title 21, U.S.C., Sec. 841(a)(1))
Maximum Penalties: For Possession with Intent to Distribute Charge: Forty years’ imprisonment with a mandatory minimum sentence of five years and a $5 million fine.
Case Number 21CR1119-H
Name
Age
Hometown
Sentence
PHINATH PETER KHVANN, aka “Peanut,”
46
San Diego
18 months
SUMMARY OF CHARGES
Felon in Possession of a Firearm (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))
Maximum Penalties: For Felon in Possession of Firearm Charge: Ten years’ imprisonment and a $250,000 fine.
Case Number 21CR1120-H
Name
Age
Hometown
Sentence
THANH NGUYEN, aka “Poway,”
46
Poway
Case still pending
SUMMARY OF CHARGES
Felon in Possession of a Firearms and Ammunition (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))
Maximum Penalties: For Felon in Possession of Firearm and Ammunition Charges: years’ imprisonment and a $250,000 fine.
Case Number 21CR1121-H
Name
Age
Hometown
Sentence
DAVID LIBANAN OPHEIM, aka “Casper,”
48
San Diego
48 months
SUMMARY OF CHARGES
Possession with Intent to Distribute (Title 21, U.S.C., Sec. 841(a)(1))
Maximum Penalties: For Possession with Intent to Distribute Charge: 40 years’ imprisonment with a mandatory minimum sentence of 5 years and a $5 million fine.
Case Number 21CR1122-H
Name
Age
Hometown
Sentence
SEAN MICHAEL RIED (1)
36
San Diego
46 months
TUNG NGOC NGUYEN (2)
26
San Diego
60 months
SUMMARY OF CHARGES
Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))
Maximum Penalties: For Distribution of Methamphetamine Charge: Forty years’ imprisonment with a mandatory minimum sentence of five years and a $5 million fine.
Case Number 21CR1123-H
Name
Age
Hometown
Sentence
*WILLIAM HENRY SCOVALL, aka “Cap,”
30
San Diego
24 months
SUMMARY OF CHARGES
Felon in Possession of a Firearm (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))
Maximum Penalties: For Felon in Possession of Firearm Charge: Ten years’ imprisonment and a $250,000 fine.
Case Number 21CR1124-H
Name
Age
Hometown
Sentence
CESAR ALONZO VALLADOLID, aka “Playboy,”
38
San Diego
Case still pending
SUMMARY OF CHARGES
Possession with Intent to Distribute Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))
Felon in Possession of a Firearm (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))
Importation of Methamphetamine (Title 21, U.S.C., Secs. 952 & 960)
Maximum Penalties: For Possession with Intent to Distribute Methamphetamine Charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
Maximum Penalties: For Felon in Possession of Firearm Charges: Ten years’ imprisonment and a $250,000 fine.
Maximum Penalties: Importation of Methamphetamine Charges: Forty years’ imprisonment with a mandatory minimum sentence of five years and a $5 million fine.
AGENCIES
Members on the Violent Crimes Task Force
FBI
San Diego Police Department San Diego Sheriff’s Department Internal Revenue Service Homeland Security Investigations National City Police Department Chula Vista Police Department Federal Bureau of Prisons
California Department of Corrections and Rehabilitation San Diego County Probation
San Diego County District Attorney’s Office
Additional partner agencies participating in the takedown
Drug Enforcement Administration
Bureau of Alcohol, Tobacco, Firearms and Explosives
U.S. Marshals Service
California Bureau of Gambling Control San Diego City Attorney’s Office
The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This 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. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.