Southern District of California
Press releases recorded for this federal judicial district.
Honolulu’s Former Prosecuting Attorney Keith Kaneshiro and Businessman Dennis Mitsunaga Indicted in Bribery SchemeRead the Press Release
Special Attorneys Michael Wheat (619) 546-8437, Joseph Orabona (619) 546-7951, Janaki Chopra (619) 546-8817, Colin McDonald (619) 546-9144 and Andrew Chiang (619) 546-8756
NEWS RELEASE SUMMARY – June 17, 2022
HONOLULU – Former Honolulu Prosecuting Attorney Keith Mitsuyoshi Kaneshiro and Honolulu businessman Dennis Mitsunaga are charged in an indictment unsealed today with participating in a bribery scheme in which Mitsunaga and his network of employees and affiliates paid Kaneshiro more than $45,000 in campaign contributions to prosecute one of his former employees and violate that employee’s civil rights.
Kaneshiro and Mitsunaga, owner and CEO of Mitsunaga & Associates, Inc., an engineering and architectural firm, were arrested at their homes this morning and will make their first appearances in federal court today before U.S. Magistrate Judge Wes Reber Porter. Also indicted and arrested today were three of Mitsunaga’s employees - Terri Ann Otani, Aaron Shunichi Fujii and Chad Michael McDonald. All are charged with Conspiracy to Commit Federal Program Bribery and Honest Services Wire Fraud, and Conspiracy Against Rights.
According to the indictment, Mitsunaga wanted a fired employee, identified in court records as L.J.M., to be prosecuted after that employee filed a federal discrimination suit against Mitsunaga’s company. In order to influence the prosecutor’s office to open an investigation and file charges, Mitsunaga steered tens of thousands of dollars to Kaneshiro’s reelection campaigns between 2012 and 2016. In doing so, Mitsunaga circumvented campaign contribution limits by asking for contributions from family members, business partners, employees and subcontractors. The accusations against L.J.M. were baseless and motivated by a desire to intimidate L.J.M., the indictment said.
According to the indictment, in the summer of 2014, after a senior deputy prosecutor in Kaneshiro’s office recommended declining charges against L.J.M., Kaneshiro reassigned the case to a recently hired deputy prosecuting attorney, identified in court records as J.D. Around December 1, 2014, acting on behalf of Kaneshiro, J.D. filed a felony information against L.J.M., charging L.J.M. with four counts of second-degree theft under State of Hawaii law.
The prosecution of L.J.M. continued for several years until her case was dismissed with prejudice in a written order by Hawaii Circuit Judge Karen T. Nakasone on September 15, 2017. The order of dismissal pointed out the “one-sided nature of the investigation” and the fact that the Department of the Prosecuting Attorney “was little more than acting as the recipient of, and conduit for” submissions provided by Mitsunaga & Associates.
The indictment alleges that in exchange for the contributions given to him by defendants Mitsunaga, Otani, Fujii, McDonald and others, Kaneshiro agreed to take official action and exercise his authority as the Prosecuting Attorney for the City and County of Honolulu to open an investigation into and prosecute L.J.M.
“This indictment alleges a Honolulu businessman and others paid more than $45,000 in campaign contributions to Honolulu’s former Prosecuting Attorney to prosecute a former employee,” said U.S. Attorney Randy Grossman in the Southern District of California. “Public officials must conduct their affairs honestly and with integrity. The Department of Justice will work to hold accountable anyone who betrays that duty through the influence of bribes.” Grossman thanked the FBI in Honolulu and the prosecution team for their work on this case.
“The citizens of Hawaii deserve a government free of corruption,” said Special Agent in Charge Steven B. Merrill of the FBI’s Honolulu Division. “Corruption erodes the public trust and the FBI is committed to ensuring that people cannot buy prosecutions in the State of Hawaii. Thanks to U.S. Attorney Grossman and the prosecution team for their teamwork and commitment to justice.”
DEFENDANTS Case No. CR 22-00048-JMS
Keith Mitsuyoshi Kaneshiro Age: 72 Honolulu, HI
Dennis Mitsunaga Age: 78 Honolulu, HI
Terri Ann Otani Age: 66 Honolulu, HI
Aaron Shunichi Fujii Age: 64 Honolulu, HI
Chad Michael McDonald Age: 50 Kaneohe, HI
SUMMARY OF CHARGES
Conspiracy to Commit Honest Services Fraud and Federal Program Bribery – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison
Conspiracy Against Rights – Title 18, U.S.C., Section 241
Maximum penalty: Ten years in prison
AGENCY
FBI
*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 Pleads Guilty in Fentanyl Overdose Case Featured on HBO Documentary “the Crime of the Century”Read the Press Release
Assistant U. S. Attorneys Adam Gordon (619) 546-6720 and Galen Cheney (619) 546-7029
NEWS RELEASE SUMMARY—June 17, 2022
SAN DIEGO— Cole Thomas Salazar pleaded guilty in federal court today, admitting that he supplied a fatal dose of fentanyl that resulted in the death of a 24-year-old woman who was found inside her Vista apartment on November 3, 2020.
According to his plea agreement, Salazar used an online classified ads service to offer controlled substances for sale. After communicating online with the victim - identified in court documents by the initials S.E.F. - Salazar sold fentanyl to S.E.F. on November 2, 2020, and she subsequently died from ingesting the fentanyl.
On January 10, 2021, law enforcement officials arrested Salazar, who possessed packages of heroin and fentanyl when he was taken into custody. A search of his nearby hotel room located numerous quantities of controlled substances including more fentanyl and dealer-related paraphernalia such as scales, baggies, and pay and owe sheets.
The plea agreement stipulates for Salazar that the commission of the offense of distribution of fentanyl resulting in death and/or serious bodily injury applies. The investigation and arrest of Salazar and his co-defendant, Valerie Lynn Addison, was featured on the HBO show “The Crime of the Century.” Addison pleaded guilty today to possession with intent to distribute fentanyl and methamphetamine.
“We speak often about how counterfeit pills that contain fentanyl endanger our community members,” said U.S. Attorney Randy Grossman. “We can’t lose sight of the fact that powdered fentanyl – which caused the death in this case - is extremely dangerous. To those drug dealers who would sell fentanyl in all its forms: Know that federal law enforcement will hold you accountable for any deaths that your sales cause.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case and unfortunately, many others like it.
“The investigators on the DEA Overdose Response Team work tirelessly to identify and arrest people who cause fentanyl overdose deaths, such as Cole Salazar,” said DEA Special Agent in Charge Shelly S. Howe. “Our mission is to hold dealers accountable and to save lives. In this case, that mission was accomplished by arresting Salazar and seizing additional fentanyl that could have killed others.”
“These guilty pleas are the result of joint efforts between Homeland Security Investigations (HSI), DEA, the San Diego Sheriff’s Department, the San Diego County District Attorney’s Office and the U.S. Attorney’s office, working tirelessly to identify criminals who profit from selling lethal drugs in the San Diego community,” said HSI San Diego Special Agent in Charge Chad Plantz. “HSI will continue to assist the DEA and our state and local partners to bring drug dealers to justice, while also aggressively pursuing drug cartels who smuggle dangerous drugs into the U.S.”
Salazar and Addison are scheduled to be sentenced on September 16, 2022, before U.S. District Judge Cathy Ann Bencivengo.
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, and the Drug Enforcement Administration to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County. Investigators from the DEA Overdose Response Team led the investigation into S.E.F’s death.
DEFENDANTS Case Number 21cr3518-CAB
Cole Thomas Salazar Age: 32 San Diego, CA
Valerie Lynn Addison Age: 40 San Diego, CA
SUMMARY OF CHARGES
Salazar:
Possession with Intent to Distribute (Fentanyl) – Title 18, United States Code, Section 841(a)(1)
Maximum penalty: Twenty years in prison
Addison:
Possession with Intent to Distribute (Fentanyl and Methamphetamine) – Title18, United States Code, Section 841(a)(1)
Maximum penalty: Twenty years in prison
AGENCY
Drug Enforcement Administration
Homeland Security Investigations
Federal Bureau of Investigation
California Department of Health Care Services
San Diego Sheriff’s Department
San Diego Police Department
San Diego County District Attorney’s Office
Russian Botnet Disrupted in International Cyber OperationRead the Press Release
Assistant U. S. Attorney Jonathan I. Shapiro (619) 546-8225
NEWS RELEASE SUMMARY – June 16, 2022
SAN DIEGO – The U.S. Department of Justice, together with law enforcement partners in Germany, the Netherlands and the United Kingdom, have dismantled the infrastructure of a Russian botnet known as RSOCKS which hacked millions of computers and other electronic devices around the world.
A botnet is a group of hacked internet-connected devices that are controlled as a group without the owner’s knowledge and typically used for malicious purposes. Every device that is connected to the internet is assigned an Internet Protocol (IP) address.
According to a search warrant affidavit, unsealed today in the Southern District of California, and the operators’ own claims, the RSOCKS botnet, operated by Russian cybercriminals, comprised millions of hacked devices worldwide. The RSOCKS botnet initially targeted Internet of Things (IoT) devices. IoT devices include a broad range of devices—including industrial control systems, time clocks, routers, audio/video streaming devices, and smart garage door openers, which are connected to, and can communicate over, the internet, and therefore, are assigned IP addresses. The RSOCKS botnet expanded into compromising additional types of devices, including Android devices and conventional computers.
“The RSOCKS botnet compromised millions of devices throughout the world,” said U.S. Attorney Randy Grossman. “Cyber criminals will not escape justice regardless of where they operate. Working with public and private partners around the globe, we will relentlessly pursue them while using all the tools at our disposal to disrupt their threats and prosecute those responsible.” Grossman thanked the prosecution team, the FBI and the Department of Justice Criminal Division’s Computer Crimes and Intellectual Property Section for their excellent work on this case.
“This operation disrupted a highly sophisticated Russia-based cybercrime organization that conducted cyber intrusions in the United States and abroad,” said FBI Special Agent in Charge Stacey Moy. “Our fight against cybercriminal platforms is a critical component in ensuring cybersecurity and safety in the United States. The actions we are announcing today are a testament to the FBI’s ongoing commitment to pursuing foreign threat actors in collaboration with our international and private sector partners.”
A legitimate proxy service provides IP addresses to its clients for a fee. Typically, the proxy service provides access to IP addresses that it leases from internet service providers (ISPs). Rather than offer proxies that RSOCKS had leased, the RSOCKS botnet offered its clients access to IP addresses assigned to devices that had been hacked. The owners of these devices did not give the RSOCKS operator(s) authority to access their devices in order to use their IP addresses and route internet traffic. A cybercriminal who wanted to utilize the RSOCKS platform could use a web browser to navigate to a web-based “storefront” (i.e., a public web site that allows users to purchase access to the botnet), which allowed the customer to pay to rent access to a pool of proxies for a specified daily, weekly, or monthly time period. The cost for access to a pool of RSOCKS proxies ranged from $30 per day for access to 2,000 proxies to $200 per day for access to 90,000 proxies.
Once purchased, the customer could download a list of IP addresses and ports associated with one or more of the botnet’s backend servers. The customer could then route malicious internet traffic through the compromised victim devices to mask or hide the true source of the traffic. It is believed that the users of this type of proxy service were conducting large scale attacks against authentication services, also known as credential stuffing, and anonymizing themselves when accessing compromised social media accounts, or sending malicious email, such as phishing messages.
As alleged in the unsealed warrant, FBI investigators used undercover purchases to obtain access to the RSOCKS botnet in order to identify its backend infrastructure and its victims. The initial undercover purchase in early 2017 identified approximately 325,000 compromised victim devices throughout the world with numerous devices located within San Diego County. Through analysis of the victim devices, investigators determined that the RSOCKS botnet compromised the victim device by conducting brute force attacks. The RSOCKS backend servers maintained a persistent connection to the compromised device. Several large public and private entities have been victims of the RSOCKS botnet, including a university, a hotel, a television studio, and an electronics manufacturer, as well as home businesses and individuals. At three of the victim locations, with consent, investigators replaced the compromised devices with government-controlled computers (i.e., honeypots), and all three were subsequently compromised by RSOCKS. The FBI identified at least six victims in San Diego.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Jonathan I. Shapiro of the Southern District of California and Ryan K.J. Dickey, Senior Counsel for the Department of Justice Criminal Division’s Computer Crimes and Intellectual Property Section. The Department of Justice extends its appreciation to the authorities of Germany, the Netherlands, and the United Kingdom, the Justice Department’s Office of International Affairs and private sector cybersecurity company Black Echo, LLC for their assistance provided throughout the investigation.
In September 2020, FBI Director Christopher Wray announced the FBI’s new strategy for countering cyber threats. The strategy focuses on imposing risk and consequences on cyber adversaries through the FBI’s unique authorities, world-class capabilities, and enduring partnerships. Victims are encouraged to report the incident online with the Internet Crime Complaint Center (IC3) www.ic3.gov.
Multi-Year Investigation Leads to Indictment of 26 Defendants and Seizure of Nearly 500,000 Counterfeit Pills Laced with FentanylRead the Press Release
Assistant U. S. Attorney Owen Roth (619) 546-7710 and Assistant U.S. Attorney Shauna R. Prewitt (619) 546-7937
NEWS RELEASE SUMMARY – June 14, 2022
SAN DIEGO – A two-year investigation has led to the indictment of 26 defendants for international drug smuggling, drug trafficking, and related conspiracy offenses. One of the defendants, Raul Barajas-Padilla, appeared in federal court yesterday for an initial appearance on the indictment.
So far, 17 defendants have been arrested. Efforts remain ongoing to apprehend the remaining defendants.
According to publicly filed documents, the Drug Enforcement Administration led the investigation into a drug-trafficking conspiracy extending from Sinaloa, Mexico into the United States.
Agents identified Mexico-based traffickers who coordinated shipments of counterfeit pharmaceutical pills laced with fentanyl, powder fentanyl, heroin, methamphetamine and cocaine into the United States. These efforts yielded seizures of more than 478,000 counterfeit pharmaceutical pills laced with fentanyl, as well as about 51 kilograms of methamphetamine, 10 kilograms of cocaine, 4 kilograms of powder fentanyl, and 4 kilograms of heroin. Agents also seized about $230,000 in assets.
According to the indictment, DEA agents also identified the distributors in the U.S.; the couriers who were responsible for transporting drugs; the people who managed stash houses; the people who smuggled the illicit proceeds back to Mexico; and other dealers.
“This long-term investigation has resulted in the seizure of nearly half a million fentanyl-laced counterfeit pills plus additional quantities of fentanyl in powder form,” said U.S. Attorney Randy Grossman. “As fentanyl continues to fuel the ongoing opioid epidemic and claim ever more lives, we will use every available resource to find, apprehend, and hold accountable those who seek to profit from it, no matter where they are.” Grossman thanked the prosecution team as well as the DEA, HSI agents, the San Diego County Sheriff’s Department and supporting local, state, and federal partners who conducted this investigation for their excellent work on this case.
“Drug cartels, such as the Sinaloa cartel, are driving addiction and overdose deaths in the United States,” said DEA Special Agent in Charge Shelly S. Howe. “This extensive investigation demonstrates DEA’s resolve to hold drug dealers accountable for their destruction and to prevent massive amounts of fentanyl pills and other addictive drugs from being sold to our citizens.”
“The criminal investigation that led to this indictment is a great example of successful collaboration between multiple law enforcement agencies determined to prevent illegal narcotics from entering our communities,” said HSI San Diego Special Agent in Charge Chad Plantz. “HSI will continue working with our federal, state, and local law enforcement partners to bring to justice those who smuggle dangerous narcotics across our borders.”
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.
The U.S. Attorney’s office is actively partnering with San Diego County District Attorney Summer Stephan and the San Diego Prescription Drug Abuse Task Force (PDATF) to provide the community information and resources regarding fentanyl and naloxone. Resources include a recent recorded Town Hall titled Talk to Your Kids About Fentanyl, featuring 10 Ways to Protect our Kids from Fentanyl, https://www.youtube.com/watch?v=el09UaBc47U; a Community & Parent Fentanyl Toolkit, available at https://www.sdpdatf.org/community-resources; and information on how to obtain and learn to use lifesaving Naloxone, https://www.sdpdatf.org/naloxone.
DEFENDANTS Case Number 22-CR-863
Jose Refugio Vasquez, Jr. Age: 31 San Ysidro
Jaime Gutierrez Age: 48 El Cajon and Tijuana, MX
Jose Baudelio Garcia Age: 45 San Diego
Raul Osbaldo Perez Age: 28 San Ysidro and Tijuana, MX
Marvin Toms Age: 61 San Bernardino, CA
Andrew Acuna Age: 31 Chula Vista
Mario Hernandez Age:45 Chula Vista and Fresno, CA
Michael Perez-Lopez Age: 26 San Ysidro and Tijuana, MX
Jorge Paredes Age: 26 San Diego and Tijuana
Edgar Lopez, Jr. Age: 25 Tijuana, MX
Angel Gutierrez Age: 21 Lynwood, CA
Raul Barajas-Padilla Age: 21 San Diego
Oscar Daniel Munoz Gonzalez Age: 30 San Ysidro
Gabriel Jimenez-Aispuro Age: 31 San Diego
Edgar Cornejo Age: 26 San Diego
Andres Martinez Age: 25 San Ysidro
Oswaldo Marceleno-Cortez Age: 40 San Diego
SUMMARY OF CHARGES
Controlled Substances Trafficking Conspiracy – Title 21, U.S.C., Section 846
Maximum penalty: Life in prison, mandatory minimum 10 years; $10 million fine
Possession of Controlled Substances with Intent to Distribute – Title 21, U.S.C., Section 841
Maximum penalty: Life in prison, mandatory minimum 10 years; and $10 million fine
AGENCY
Drug Enforcement Administration
Homeland Security Investigations
San Diego Sheriff’s Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Spammers Plead Guilty, Company Forfeits $4.9 MillionRead the Press Release
Assistant U. S. Attorneys Sabrina L. Fève (619) 546-6786 and Melanie Pierson 546-7976
NEWS RELEASE SUMMARY – June 10, 2022
SAN DIEGO – Three employees of the affiliate marketing platform Amobee pleaded guilty in federal court today to hijacking Internet Protocol (IP) addresses to send unsolicited commercial email messages, commonly known as “spam.”
The three employees, Jacob Bychak, Mark Manoogian, and Abdul Mohammed Qayyum, joined Daniel Dye and Vincent Tarney in pleading guilty to violating the federal CAN-SPAM statute for their involvement in misusing the stolen IP addresses to send spam.
The defendants’ employer, formerly known as both Adconion Direct Inc. and Frontline Direct (hereafter, “Adconion”), previously agreed to forfeit $4,939,526 as the fraudulent proceeds of a wire fraud conspiracy in which its employees hijacked more than 500,000 IP addresses to send over 10 billion commercial emails to people in the United States and elsewhere.
IP addresses are the beginning and ending points for sending data via the internet. A discrete bundle of IP addresses in numeric order is known as a range or block. In this case, the defendants pleaded guilty to using fraudulent Letters of Authorization (“LOAs”) to take control of large blocks of IP addresses registered to eleven different entities without the registrants’ knowledge or consent. As part of the fraudulent scheme, the defendants used email accounts set up to impersonate the IP blocks’ true registrants. In particular, the defendants used and created email addresses with the true registrants’ domain name (e.g., ect.net) to impersonate real and fictitious employees. They then emailed the fraudulent LOAs, which were written on fake letterheads and included forged signatures, from these imposter email accounts to various Internet hosting companies to falsely represent to the hosting companies that the true registrants authorized them to use the IP addresses.
All the IP blocks hijacked by the defendants were IPv4 addresses. Demand for a finite number of IPv4 addresses available has driven up their value over time. Between December 2010 and September 2014, when the defendants’ conduct occurred, a block of 65,534 IP addresses, referred to as a Class B block, was worth approximately $650,000. Today, it is worth as much as $3.3 million. Internet Service Providers like Yahoo and Google routinely employ filters to block spam from reaching a recipient’s inbox. Once an IP address is associated with spam, the filters typically block messages sent from that IP address. Spammers need a constant supply of fresh unblocked IP addresses to deliver the unwanted commercial email.
The defendants’ jobs with Adconion were to acquire fresh IP addresses and employ other measures to circumvent the spam filters. To conceal Adconion’s ties to the stolen IP addresses and the spam sent from these IP addresses, the defendants used a host of DBAs, virtual addresses, and fake names provided by the company. While defendants touted ties to well-known name brands, the email marketing campaigns associated with the hijacked IP addresses included advertisements such as “BigBeautifulWomen,” “iPhone4S Promos,” and “LatinLove[Cost-per-Click].”
Today’s guilty pleas arise from an October 2018 indictment for which trial began on May 23, 2022. Following opening statements, the trial was interrupted by the recent COVID surge and had yet to resume. In exchange for misdemeanor pleas, the defendants have each agreed to admit their involvement in the scheme, to undertake 100 hours of community service, and to pay a maximum $100,000 fine.
This case was investigated by the Federal Bureau of Investigation with assistance provided by the Internal Revenue Service and the Department of Justice’s Computer Crime and Intellectual Property Section.
“The defendants generated millions of dollars for their company by high-jacking hundreds of thousands of IP addresses, enabling them to illegally inundate consumers with over 10 billion email ads,” said U.S. Attorney Randy Grossman. ““This case was the first in the nation to charge violations of the CAN-SPAM Act’s provision against using hijacked IP addresses to send spam. We are committed to using all the tools at our disposal to protect the internet and everyone who depends on it.” Grossman thanked the prosecution team as well as the investigating agencies, the American Registry of Internet Numbers, Yahoo, The Spamhaus Project, and The National Cyber-Forensics and Training Alliance.
“These defendants spent years illegally sending billions of spam emails nationwide which made millions of dollars,” said FBI Special Agent in Charge Stacey Moy. “The FBI remains committed to pursuing these criminal conspiracies, no matter how long it takes, and holding them accountable in a court of law. I want to thank the United States Attorney’s Office for their ongoing support and partnership in bringing this case to an end.”
The defendants are scheduled to be sentenced on October 3, 2022, at 10:30 a.m. before U.S. District Judge Gonzalo P. Curiel.
DEFENDANTS Case Number 18cr4683-GPC
Jacob Bychak Age: 36 Carlsbad, CA
Mark Manoogian Age: 39 Carlsbad, CA
Abdul Mohammed Qayyum Age: 40 Oceanside, CA
SUMMARY OF CHARGES
CAN-SPAM – Title 18, U.S.C., Section 1037(a)(5) and (b)(3)
Maximum penalty: One year in custody and $100,000 fine
AGENCIES
Federal Bureau of Investigation
Internal Revenue Service
Pesticide Smuggling Ringleader Sentenced to 8 Months in PrisonRead the Press Release
For Further Information, Contact:
Assistant U. S. Attorney Melanie K. Pierson (619) 546-7976SAN DIEGO – Sofia Mancera Morales, the ringleader of a pesticide smuggling organization, was sentenced to eight months in custody in federal court yesterday, having previously entered a guilty plea in which she acknowledged obtaining illegal pesticides in Mexico and delivering them to others to smuggle into the United States. When handing down the sentence, U.S. District Court Judge John Houston also ordered Morales to pay $7497 in restitution for the cost of disposal of the illegal pesticides.
According to sentencing documents, Morales recruited individuals on Facebook, offering to pay $40-$150 for each box of six 1-liter bottles delivered to the United States. Morales directed her recruits to deliver the pesticides to a self-storage facility near the border in Calexico, after which they were required to send her photographs of the pesticides in the storage unit as proof of delivery prior to payment. Morales paid recruits to lease self-storage units in their own names and instructed them to provide her with the keys. Recruits caught at the border with pesticides reported that they had seen items delivered by others in their self-storage units, including pesticides, veterinary medications and alcohol. One recruit delivered almost 1000 bottles of pesticides in a one-month period, while others advised that they had delivered pesticides 2-5 times per week.
The pesticides involved were primarily Bovitraz and Taktic, which contain the active ingredient amitraz in a concentrated form (12.5%) that renders it a cancelled and unregistered pesticide. Amitraz is an acaricide that is registered in the United States. to control varroa mites in honeybee colonies at a much lower concentration (3.33%) than the smuggled product. At a permissible concentration it is also registered for use in dog flea collars. In addition to posing risks to the bee population, misuse of amitraz-containing products in beehives can result in exposures that could cause neurological effects and reproductive effects in humans from consumption of contaminated honey. Animal toxicity studies indicate that amitraz is slightly toxic by the oral and inhalation routes and moderately toxic through the skin. Reproductive effects seen in animal studies include a decline in male fertility and a reduction in live births. Moreover, signs of neurotoxicity from exposure to amitraz were seen in multiple animal species, including central nervous system depression, decrease in pulse rate, and hypothermia, and based on human studies, humans appear to be more sensitive to amitraz than
animals. Amitraz is also classified as a Group C possible human carcinogen based on rodent studies suggesting that long-term exposure could result in cancer.
Federal law prohibits the distribution and sale of cancelled or unregistered pesticides. 7 U.S.C. §136j(a)(1)(A). Only pesticides registered with the EPA may be imported or sold in the United States. 7 U.S.C. §136o(c).
“In exchange for ill-begotten profits, this cavalier smuggling operation was more than willing to risk the public’s health and the honeybee industry, which is critical to pollinating our food supply,” said U.S. Attorney Randy Grossman. “This office and our law enforcement partners will not stand idly by in the face of pesticide 3 smuggling. Perpetrators of environmental crimes will be investigated and held accountable.” Grossman commended Assistant U.S. Attorney Melanie Pierson, Special Assistant U.S. Attorney Stephen DaPonte, and the law enforcement agents at Homeland Security Investigations and the EPA’s Criminal Investigation Division who worked on this case.
“This defendant recklessly orchestrated an illegal large-scale pesticide smuggling operation. These pesticides are banned from importation into the United States because they are highly toxic to humans, wildlife, and the environment,” said Chad Plantz, Special Agent in Charge of Homeland Security Investigations (HSI) San Diego. HSI, along with its partners from the Environmental Protection Agency – Criminal Investigation Division, U.S. Customs and Border Protection, the U.S. Attorney’s Office, and the Department of Justice Environmental Crimes Section are committed to preventing these deadly pesticides from entering the United States.”
“The pesticides involved in this case pose serious public health and environmental dangers,” said Special Agent in Charge Scot Adair of EPA’s Criminal Investigation Division in California. “The sentence in this case demonstrates that individuals who intentionally violate smuggling and environmental protection laws will be held responsible for their crimes.”Case Number 20cr3054-JAH
DEFENDANT
Sofia Mancera Morales Age: 53 Mexicali, MX
SUMMARY OF CHARGES
Conspiracy to Smuggle Pesticides – Title 18, U.S.C., Section 371
Maximum penalty: 5 years’ imprisonment and $250,000 fine
AGENCY
Homeland Security Investigations
Environmental Protection Agency, Criminal Investigation DivisionFormer Tungsten Heavy Powder & Parts CEO Pleads Guilty to Conspiring to Export United States Defense Articles including to the People’s Republic of ChinaRead the Press Release
For Further Information, Contact:
Assistant U.S. Attorneys Kareem A. Salem (619) 546-8904 and John Parmley (619) 546-7957SAN DIEGO – Joe Sery, former owner and chief executive officer of Tungsten Heavy Powder & Parts, pleaded guilty today before U.S. Magistrate Judge William V. Gallo to conspiring to commit offenses against the United States, including the unlawful exportation of defense articles on the U.S. Munitions List from the United States to the People’s Republic of China, the Republic of India, and elsewhere, without first obtaining a valid license or approval for such export from the U.S. Department of State, in violation of federal export laws pursuant to the International Traffic in Arms Regulations (ITAR).
According to his plea agreement, Sery admitted that, while the CEO of Tungsten Heavy Parts and Powder, he was educated and trained on the requirements of U.S. export control laws, which prohibit the unlicensed export of items and data contained on the U.S. Munitions List. Sery entered into contracts with various defense contractors related to munitions and obtained ITAR-controlled technical data from them. Thereafter, knowing it was unlawful, he provided this information to a foreign national, his brother, who took the technical data to the People’s Republic of China, the Republic of India, and elsewhere at Sery’s direction. Sery also permitted his brother full access to THPP’s file system while overseas, knowing that it contained export-controlled technical data.
“As CEO of a company with multiple defense contracts, Sery was entrusted with controlled information that he knew he had to protect, yet he completely disregarded security regulations and allowed sensitive data to be sent to China, India and elsewhere,” said U.S. Attorney Randy Grossman. “He is now being held accountable.” Grossman commended the prosecutors and Homeland Security Investigations and Defense Criminal Investigative Service agents who diligently pursued this case.
“This individual willfully violated the law that prevents controlled technical data from falling into the hands of Americas’ adversaries,” said Homeland Security Investigations (HSI) San Diego Special Agent in Charge Chad Plantz. “This guilty plea should serve as a reminder that HSI and our law enforcement partners will diligently investigate and bring to justice anyone attempting to disregard our federal export laws.”
“Mr. Sery’s guilty plea is an acknowledgement of his role in a scheme to illegally export critical defense information and technology,” said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “As exemplified in this case, DCIS and our law enforcement partners will ensure all appropriate actions are taken to investigate and successfully prosecute those who engage in illicit activities that threaten our nation’s defense.”
DEFENDANT Case Number 21CR2898-GPC
Joe Sery Age: 77 San Diego, CA
CHARGE
Conspiracy to Commit Offenses Against the United States (to wit: Exportation of Defense Articles Without a License- Title 18 U.S.C., Section 371; Title 22 U.S.C., 2778(b)(2), (c); Title 22 CFR Sections, 120, 121.1 , 123.1, 127.l(a)(4)
Maximum penalty: Five years in prison and $250,000 fine
AGENCIES
U.S. Homeland Security Investigations
U.S. Defense Criminal Investigative Services
U.S. Army, Criminal Investigation Division
National Security Division, Department of Justice
Canadian Citizen Sentenced to 46 Months for Pump and Dump Securities Fraud SchemeRead the Press Release
For Further Information, Contact:
Assistant U. S. Attorney Aaron P. Arnzen (619) 546-8384SAN DIEGO – Andrew Hackett, from Toronto Canada, was sentenced to 46 months in prison today for participating in a pump and dump securities fraud scheme involving the stock of a small, publicly-traded cannabis/gaming company.
In August 2021, the jury found Hackett guilty of securities fraud and conspiracy. According to evidence presented at trial, Hackett and his co-conspirators manipulated the market for Arias Intel Corp stock. Hackett, who led the scheme, made consistent efforts to artificially inflate the price of Arias Intel’s stock by controlling the majority of the company’s free-trading shares through concealed offshore and other nominee accounts, coordinating the company’s press releases with the issuance of penny stock newsletters, and using high-pressure call rooms targeting innocent investors. Hackett and his co-conspirators also engaged in manipulative trading to create the appearance that Arias Intel stock traded at higher prices and with greater volume than was actually the case.
In handing down the sentence, U.S. District Judge Todd W. Robinson noted that Hackett played a central role in organizing the conspirators’ pump and dump efforts. The Court also scheduled a hearing on August 12, 2022 to determine the amount of restitution Hackett should pay to victims of his crime.
“The U.S. securities markets should operate on a level playing field,” said U.S. Attorney Randy S. Grossman. “We will continue to hold those who would illegally manipulate the markets, and try to tip the scales unfairly in their favor, to account.”
“The FBI is committed to preserving the integrity of our financial markets and utilizing all available investigative techniques to root out those who attempt to manipulate it through fraudulent means,” said FBI Special Agent in Charge Stacey Moy. “The FBI is proud to work with our partners at the Securities and Exchange Commission and the Financial Industry Regulatory Authority, Inc. - Criminal Prosecution Assistance Group, to hold Mr. Hackett and his co-conspirators accountable for their criminal actions.”
Three other defendants were charged alongside Hackett and who pleaded guilty - including Kuldeep Sidhu of Vancouver, British Columbia; Annetta Budhu of New York, New York; and Kevin Gillespie of Tampa, Florida - were previously sentenced.
DEFENDANTS Case Number 18cr3072-TWR
Andrew Hackett Age: 33 Toronto, Canada
Kuldeep Sidhu Age: 51 British Columbia, Canada
Annetta Budhu Age: 57 New York, NY
Kevin Gillespie Age: 53 Tampa, Florida
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371
Securities Fraud – Title 15 U.S.C., Sections 78j(b), 78ff; and 17 C.F.R., Section 240.10b-5
AGENCY
FBI (lead agency)
Securities and Exchange Commission
Criminal Prosecution Assistance Group, Financial Industry Regulatory Authority
Leaders of International Organization that Trafficked in Counterfeit Apple Products Plead GuiltyRead the Press Release
Assistant U.S. Attorney Timothy F. Salel (619) 546-8055
NEWS RELEASE SUMMARY – June 3, 2022
SAN DIEGO - Three brothers from San Diego pleaded guilty in federal court yesterday, admitting that for eight years, they led an international conspiracy to traffic counterfeit iPhones and iPads.
As part of their plea agreements, the Liao brothers – Zhiwei, Zhimin and Zhiting - and their wives - Dao La, Mengmeng Zhang, and Tam Nguyen, who also pleaded guilty yesterday - agreed to forfeit their interests in five residences in San Diego, more than $250,000 in criminal proceeds, and more than 200 Apple iPhones that were counterfeit, fraudulently obtained, or linked to their criminal conspiracy.
The Liaos admitted that, from 2011 through at least August 2019, they managed an organization to traffic in counterfeit Apple products. The Liaos imported counterfeit iPhones and iPads from China that looked genuine and included identification numbers that matched identification numbers on real iPhones and iPads that were under warranty and had been previously sold to customers in the United States and Canada.
At the direction of the Liao brothers, co-conspirators traveled to hundreds of Apple Stores across the United States and Canada and attempted to exchange more than 10,000 counterfeit iPhones and iPads for genuine iPhones and iPads. The Liaos exported fraudulently obtained iPhones and iPads to individuals in foreign countries for profit. The estimated total infringement amount or loss suffered by Apple was approximately $6.1 million.
“As our markets become more global, more complex and more sophisticated, protecting intellectual property rights become even more important,” said U.S. Attorney Randy S. Grossman. “Our office will aggressively prosecute criminals who try to steal intellectual property and attempt to exchange counterfeit products for genuine products. We will continue fighting IP crime and upholding the rule of law.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.
“For years, the Liao brothers and their co-conspirators trafficked thousands of counterfeit Apple products in exchange for genuine Apple products totaling millions of dollars,” said FBI Special Agent in Charge Stacey Moy. “The FBI and our law enforcement partners at the San Diego Police Department, the San Diego County Sheriff’s Department, U.S. Customs and Border Protection, Homeland Security Investigations, and the U.S Attorney’s Office will pursue criminal organizations who target legitimate businesses through fraudulent means for their own financial gain.”
The Liao brothers and their wives are scheduled to appear for sentencing before U.S. District Judge Cynthia A. Bashant on August 15, 2022, at 9:00 a.m.
DEFENDANTS Case Number 19CR4407-BAS
Zhiwei Liao, aka “Allen” San Diego, CA Age: 34
Zhimin Liao, aka “Jimmy” San Diego, CA Age: 36
Zhiting Liao, aka “Tim” San Diego, CA Age: 33
Dao Trieu La, aka “Selena”
aka “Denise” San Diego, CA Age: 32
Mengmeng Zhang, aka “Aria” San Diego, CA Age: 31
Tam Thi Minh Nguyen, aka “Kelly,”
aka “Actheart” San Diego, CA Age: 39
CO-CONSPIRATORS WHO PREVIOUSLY PLEADED GUILTY
Charley Hsu San Diego, CA Age: 41
Danny Tran Chan,
aka “Stanley” San Diego, CA Age: 32
Phillip Pak, aka “Teddy” San Diego, CA Age: 33
Deedee Zhu, aka “David,”
aka “Peter” San Diego, CA Age: 35
Jiaye Jiang, aka “joejoekong”
aka “yipkong” San Diego, CA Age: 34
Hyo Yang, aka “Will” San Diego, CA Age: 33
SUMMARY OF CHARGES
The Liao brothers (Zhiwei, Zhimin, and Zhiting) all pleaded guilty to conspiracy to traffic in counterfeit goods. The Liaos’ wives pleaded guilty to substantive counts of wire fraud or mail fraud. Dao Trieu La pleaded guilty to wire fraud. Mengmeng Zhang and Tam Nguyen pleaded guilty to mail fraud.
Conspiracy to Traffic in Counterfeit Goods – Title 18, U.S.C., Section 2320
Maximum penalty: Ten years in prison, $2 million fine, mandatory restitution, and forfeiture.
Wire fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison, the greater of $250,000, or twice the value of the gross gain or twice the gross loss to the victims, mandatory restitution, and forfeiture.
Mail fraud – Title 18, U.S.C., Section 1341
Maximum penalty: Twenty years in prison, the greater of $250,000, or twice the value of the gross gain or twice the gross loss to the victims, mandatory restitution, and forfeiture.
AGENCIES
Federal Bureau of Investigation
San Diego Police Department
San Diego Sheriffs
U.S. Customs & Border Protection
Homeland Security Investigations
Drug Dealer Sentenced to 25 Years for Distributing Fentanyl Resulting in an Overdose DeathRead the Press Release
Assistant U. S. Attorneys Kareem A. Salem (619) 546-8904 and Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – June 3, 2022
SAN DIEGO – Drug dealer Arnold Ray Walters III of San Diego was sentenced in federal court today to 25 years in prison for unlawfully possessing firearms and distributing fentanyl that resulted in the overdose death of a 24-year-old Poway man on January 1, 2017.
According to his plea agreement, Walters admitted that, on or about December 31, 2016, he knowingly provided a pressed-blue pill containing fentanyl to another individual and understood that it would, in turn, be provided to the victim. Walters also admitted he was aware of the potentially lethal impact of the fentanyl based on his knowledge of other individuals accidentally overdosing on fentanyl.
At today’s sentencing hearing, U.S. District Judge Janis L. Sammartino noted, “This was truly a tragic case.”
Walters, who has a history of drug-sales convictions and firearm offenses, admitted that he sold fentanyl despite knowing the perils associated with the drug. Walters was also found in unlawful possession of several firearms including an AR-15 style semi-automatic rifle.
“This is a sentence that reflects the tragic and senseless loss of a young life,” said U.S. Attorney Randy Grossman. “Dealers take note, you will pay a high price for your greedy, reckless actions which are destroying lives, families and communities. Our prosecutors and law enforcement officials are working hard to prevent more deaths and seek justice for victims.” Grossman thanked the prosecution team as well as officials from the San Diego Sheriff’s Department and Homeland Security Investigations for their excellent work on this case.
“This significant sentence should send a strong message that HSI takes very seriously its mission of ensuring public safety,” said HSI San Diego Special Agent in Charge Chad Plantz. “HSI will continue to work with our federal, state, and local law enforcement partners to relentlessly investigate and bring to justice those who introduce dangerous narcotics into our communities.”
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 Numbers 19-CR-4406-JLS; 18-CR-2185-JLS
Arnold Ray Walters III Age: 34 San Diego
SUMMARY OF CHARGES
Felon in Possession of Firearm – Title 18, U.S.C., Section 922(g)(1)
Distribution of Fentanyl Resulting in Death – Title 21, U.S.C., Section 841(b)(1)(c)
Maximum penalty: Mandatory minimum 20 years in prison up to life
AGENCY
San Diego Sheriff’s Department
U.S. Homeland Security Investigations
Former U.S. Marine Angel Dominguez Ramirez Jr. Sentenced for Leading International Cocaine Distribution OrganizationRead the Press Release
Assistant U. S. Attorney Kyle Martin (619) 546-7726
NEWS RELEASE SUMMARY – June 1, 2022
SAN DIEGO – Angel Dominguez Ramirez Jr., a former U.S. Marine with dual U.S. and Mexican citizenship, was sentenced in federal court to 195 months in prison for leading an international organization that transported ton-quantities of cocaine from South America to Mexico and into the United States.
Dominguez had previously entered a guilty plea to International Conspiracy to Distribute Cocaine and Money Laundering Conspiracy. In pronouncing sentence yesterday, U.S. District Judge William Q. Hayes noted the “staggering” amount of cocaine that Dominguez smuggled.
According to a court document, the organization Dominguez headed called itself El Seguimiento 39, El Seg 39, or simply “The Company.” According to the same document, Dominguez built his organization through cooperative alliances with the Beltran Leyva Organization (BLO), the Cartel de Jalisco Nueva Generacion (CJNG), the Sinaloa Cartel, the Cartel del Golfo (CDG), and Los Zetas.
Other publicly filed documents note that El Seg 39 also used its contacts with corrupt high-level Mexican officials to thwart investigations into its drug trafficking activities. As noted in court documents, agents from Homeland Security Investigations (HSI) estimate that at its height El Seg 39 used these alliances to smuggle approximately 10 tons of cocaine into the United States each month and move at least $10 million dollars of drug proceeds back into Mexico monthly.
“Today’s sentence sends a message that the leaders of even the most powerful criminal organizations will be held accountable,” said U.S. Attorney Randy Grossman. Grossman thanked the prosecution team, Homeland Security Investigations, the Drug Enforcement Administration, and Customs and Border Protection for their excellent work on this case.
“Today’s sentencing of Dominguez is a strong example of HSI’s ongoing efforts to target and dismantle the most significant drug trafficking organizations in the world, whose multi-billion dollar criminal networks funnel drugs onto our streets and spread violence into our communities,” said Chad Plantz, Special Agent in Charge of HSI San Diego. “We will continue to work together with our law enforcement partners in Mexico to root out the leaders of these insidious cartels, wherever they may be found, and bring them to justice.”
“This case is a perfect example of how DEA and our law enforcement partners work together to dismantle criminal organizations,” said DEA Special Agent in Charge Shelly S. Howe.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
DEFENDANT Case Number: 19CR1996-WQH
Angel Dominguez Ramirez Age: 50 Tamaulipas, Mexico
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963; Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine and 5 years supervised release.
Conspiracy to Launder Monetary Instruments, in violation of Title 21 U.S.C. §§ 1956(a)(2)(B)(i). Term of custody of up to 10 years, $500,000 fine.
AGENCIES
Homeland Security Investigations
Drug Enforcement Administration
Customs and Border Protection
Department of Justice, Organized Crime Drug Enforcement Task Force
Department of Justice, Office of Enforcement Operations
Department of Justice, Office of International Affairs
Drug Dealer Pleads Guilty to Selling Counterfeit Pills that Caused Death of Thirty-Five-Year-OldRead the Press Release
Assistant U. S. Attorney Sean Van Demark (619) 546-7657
NEWS RELEASE SUMMARY—June 1, 2022
SAN DIEGO — Drug dealer Saul Caro pleaded guilty in federal court today, admitting that he sold the fentanyl that caused the fatal overdose of a thirty-five-year-old San Diego resident, identified in court records as M.S.
According to his plea agreement, on April 11, 2021, Caro and the victim exchanged text messages to coordinate the sale of counterfeit oxycodone pills laced with fentanyl. Caro delivered the pills to M.S.’s residence.
M.S. died in his apartment sometime on the evening of April 11, 2021. Caro admitted that the pills he gave to M.S. caused his death. When a search warrant was executed at Caro’s residence, a loaded, unregistered, semi-automatic privately manufactured firearm with no serial number, or “ghost gun” was located along with other drugs and drug paraphernalia.
Prior to this meeting, Caro had sold the counterfeit oxycodone pills to M.S., and the victim had told Caro that some of the pills had caused him severe unintended effects.
“Drug dealers are playing with fire when they sell illicit drugs because deadly fentanyl is everywhere. Dealers beware: the counterfeit pills or powder you sell will inevitably be laced with fentanyl. If you provide the fatal pill or powder, you will be held responsible for the victim’s death.” Grossman thanked the prosecution team and agents from the Drug Enforcement Administration and Homeland Security Investigations for their excellent work to achieve justice in this case.
“Deaths caused by fentanyl continue to rise in San Diego County as the cartels and drug dealers, such as Saul Caro, drive addiction,” said DEA Special Agent in Charge Shelly S. Howe. “In response, DEA has increased the number of investigators on our Overdose Response Team, making us laser focused on pursuing dealers who distribute deadly fentanyl.”
“Homeland Security Investigations (HSI) San Diego, along with the DEA and our San Diego law enforcement partners, are prioritizing investigations targeting both the drug cartels who are smuggling fentanyl into the United States and the local dealers who peddle this lethal drug within our community,” said HSI San Diego Special Agent in Charge Chad Plantz.
Caro is scheduled to be sentenced on September 19, 2022 at 8:30 a.m. before U.S. District Judge Gonzalo P. Curiel
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, and the DEA to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The DEA created Narcotics Task Force Team 10 as a response to the increase in overdose deaths in San Diego County. Agents from Team 10 contributed to the investigation into M.S.’s death.
DEFENDANTS Case Number 21cr3100-GPC
Saul Caro Age: 33 San Diego, CA
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 18, United States Code, Section 841(a)(1)
Maximum penalty: Twenty years in prison
AGENCY
Drug Enforcement Administration
Federal Bureau of Investigation
Homeland Security Investigations
San Diego County District Attorney’s Office
San Diego Police Department
State of California Department of Health Care Services
Woman Sentenced to 15 Months in Federal Custody for Interfering with Southwest Airlines Flight AttendantRead the Press Release
SAN DIEGO – Vyvianna M. Quinonez of Sacramento was sentenced in federal court today to 15 months in federal custody for interfering with a Southwest Airlines flight attendant. In addition, U.S. District Court Judge Todd W. Robinson ordered Quinonez to pay $25,981.57 in restitution and a $7,500 fine and imposed three years of supervised release. While on supervised release, Quinonez will be prohibited from flying on commercial aircraft and must participate in anger management classes or counseling, among other conditions.
Last year, Quinonez pleaded guilty to one count of interference with flight crew members and attendants, admitting that she assaulted a flight attendant by punching her in the face and head with a closed fist and grabbing her hair.
According to admissions in her plea agreement, on May 23, 2021, Quinonez was a passenger aboard Southwest Airlines Flight 700 from Sacramento International Airport to San Diego International Airport. During the flight’s final descent, Quinonez failed to comply with federal rules and regulations. She was not wearing her seat belt, pulled her tray table down, and was not wearing her facemask properly. Court documents state that Quinonez failed to comply when a flight attendant instructed her to fasten her seatbelt. A short time later, another flight attendant instructed Quinonez to fasten her seat belt and stow her tray table for her own safety and wear her mask correctly. Quinonez did not comply and talked back to the flight attendant while shouting profanities.
The plea agreement states Quinonez began filming the flight attendant on her cellphone and pushed the flight attendant. Quinonez admitted she stood up and intentionally assaulted the flight attendant. The assault was captured on video by another passenger sitting a few rows ahead of Quinonez. Several passengers attempted to stop Quinonez by grabbing at her clothing and arms. Court documents state that the passenger sitting directly in front of Quinonez told investigators that she believed she “softened the blows” by grabbing Quinonez’s arm. A male passenger sitting nearby jumped between Quinonez and the flight attendant, instructing Quinonez to sit down.
The flight attendant was taken to the hospital and sustained several injuries. Three of the flight attendant’s teeth were chipped, resulting in two teeth later being replaced by crowns. The flight attendant’s left eye was bruised and swollen; she sustained a cut under her left eye, requiring three stitches; and she had a bruise in the shape of fingers on her right forearm. Due to the assault, the flight attendant was not able to perform her normal safety and customer service duties.
In a letter filed with the court, the Vice President of Inflight Operations for Southwest Airlines stated that Quinonez “created a situation onboard Flight 700 that jeopardized the entire flight and created an unsafe environment.” She explained that Quinonez’s “actions negatively impacted our workgroup beyond description . . . causing fear to come permanently into the workplace.” The letter concluded, “Southwest hopes that the ultimate sentence imposed in this matter will serve as a deterrent for others who may contemplate engaging in similar dangerous behavior aboard our aircraft.”
“Violence on aircraft endangers the lives of all onboard,” said U.S. Attorney Randy Grossman. “Attacks on flight crew members, who perform vital jobs to ensure passenger safety, will not be tolerated. We will pursue criminal charges against those who violate the law both at the airport and aboard aircraft while in flight.” Grossman commended the prosecution team, the agents and officers from FBI and San Diego Harbor Police, as well as the Transportation Security Administration and the Federal Aviation Administration for their excellent work on this case.
“Today’s sentence should send a very strong message to air travelers - the FBI will vigorously pursue anyone who assaults or interferes with flight crews,” said FBI Special Agent in Charge Stacey Moy. “I want to thank the Port of San Diego Harbor Police, the San Diego Airport Authority, the Federal Aviation Administration, the Transportation Security Administration, Southwest Airlines, and the United States Attorney’s Office for their collaboration and partnership in bringing this case to a resolution.”
If you believe you are a victim or a witness to a crime occurring aboard an aircraft, immediately report it to the FBI (https://www.fbi.gov/tips or call 1-800-CALL-FBI).
DEFENDANT Case Number 21-CR-2816-TWR
Vyvianna M. Quinonez Age: 29 Sacramento, CA
SUMMARY OF CHARGES
Interference with Flight Crew Members and Attendants – Title 49, U.S.C., 46504
Maximum penalty: Twenty years in prison and $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Harbor Police
Transportation Security Administration
Federal Aviation Administration
Two-Time Bank Robber Sentenced to 48 Months in CustodyRead the Press Release
SAN DIEGO – Eric Tyler Oxenham was sentenced in federal court today to 48 months in prison for robbing two San Diego banks in 2021 and violating the conditions of supervised release arising out of a prior conviction for felon in possession of a firearm. Oxenham received a sentence of 41 months on the bank robberies and 18 months on the supervised release revocation, with 7 months to run consecutive to the bank robbery sentence, for a total of 48 months.
Oxenham pleaded guilty on February 2, 2022, admitting that he robbed the banks by presenting demand notes that threatened the tellers. He was apprehended by police officers after he fled the second robbery.
In his plea agreement, Oxenham admitted that, on September 24, 2021, he entered the California Bank and Trust, located at 1024 Graves Avenue in El Cajon, approached a teller and passed a demand note to the teller, which read, “Put 50’s and 100’s in the bag.” The teller provided Oxenham with approximately $432.00. Oxenham left the bank on foot, and ultimately fled the scene in a white rental car.
Oxenham also admitted that, on September 30, 2021, he entered a U.S. Bank, located at 610 W. Washington Street in San Diego, approached a teller, and presented the teller with a demand note. The note read, in sum and substance, “This is a robbery. Put the money in the envelope.” In response to Defendant’s demands, the victim bank teller provided Defendant with approximately $1,608.00 before Defendant then left the bank on foot.
Investigators used nearby residential surveillance footage to identify the getaway vehicle, and ultimately Oxenham, who was arrested pursuant to a warrant on October 27, 2021.
“Bank robberies are serious crimes that undermine the banking system and strike fear in bank staff and customers,” said U.S. Attorney Randy Grossman. “Thanks to our law enforcement partners, justice was served in this case and our community is safer.” Grossman commended the prosecutors, FBI agents and San Diego Police Department officers who handled this matter.
“The San Diego FBI's Violent Crimes Task Force is committed to combatting violence on our streets and keeping our communities safe,” said FBI Special Agent in Charge Stacey Moy. “This sentence should serve as notice to anyone who believes they are free to commit crime without consequences - the FBI and our partners at the San Diego Police Department and the San Diego County Sheriff’s Department will utilize all available investigative resources to bring criminals to justice.”
DEFENDANT Case Number 22mj300
Eric Tyler Oxenham Age: 27 Campo, CA
SUMMARY OF CHARGES
Interference with Commerce by Robbery – Title 18, U.S.C., Section 1951(a)
Maximum penalty: 20 years’ imprisonment and $250,000 fine
AGENCY
Federal Bureau of Investigations
San Diego Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
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.
Doctor Selling COVID-19 “Cure” Sentenced to PrisonRead the Press Release
SAN DIEGO – Jennings Ryan Staley, a physician who attempted to profit from the pandemic by marketing what he described as a “miracle cure” for COVID-19, was sentenced today to 30 days of custody and one year of home confinement for trying to smuggle hydroxychloroquine into the United States to sell in his coronavirus “treatment kits.”
Last year, Staley pleaded guilty to one count of importation contrary to law, admitting that he worked with a Chinese supplier to try to smuggle into the United States a barrel that he believed contained over 26 pounds of hydroxychloroquine powder by mislabeling it as “yam extract.” According to court documents, Staley also suggested this mislabeling technique to another supplier who declined, telling Staley, “sorry, we must do it legally.”
Staley admitted that he intended to sell the hydroxychloroquine powder in capsules as part of his business venture selling COVID-19 “treatment kits” in March and April 2020, at the beginning of the global pandemic. According to sentencing documents, Staley also solicited investors for his scheme, promising one that he could “triple your money in 90 days.”
In his plea agreement, Staley admitted to writing a hydroxychloroquine prescription for one of his employees, misusing the employee’s name and personal identifying information. To fill the prescription for the increasingly scarce drug, Staley proceeded to answer pharmacists’ questions as though he were the employee, all without the employee’s knowledge or consent.
Staley marketed and sold his COVID-19 “treatment kits” to customers of his Skinny Beach Med Spas in and around San Diego. Court documents relate that law enforcement began investigating Staley after receiving several tips from concerned citizens sparked by his marketing campaign. According to admissions in his plea agreement, Staley described his products—which included hydroxychloroquine—as a “one hundred percent” cure, a “magic bullet,” an “amazing weapon,” and “almost too good to be true” in conversations with an undercover FBI agent posing as a potential customer, and Staley stated that the products would provide at least six weeks of immunity. Staley acknowledged that these statements were material to the potential customer, and that as a doctor he abused a position of public trust and used a special skill in carrying out his scheme.
An undercover agent purchased six of Staley’s “treatment kits” for $4,000. Court documents explain that during a recorded phone call with the undercover agent, Staley not only made the false statements about the efficacy of his “treatment kits;” he also bragged that, “I got the last tank of . . . hydroxychloroquine, smuggled out of China, Sunday night at 1:00 a.m. in the morning . . . the broker . . . smuggled it out, so to speak, otherwise tricked Customs by saying it was sweet potato extract.” In a later phone call with the undercover agent, Staley spontaneously offered to throw in doses of generic Viagra and Xanax, which is a federally controlled substance. At no point did Staley ask any medical questions about the undercover agent’s purported family members, including the agent’s three supposed minor children.
Staley also admitted that he willfully impeded and sought to obstruct the federal investigation into his conduct by lying to federal agents. Specifically, when interviewed by law enforcement, Staley falsely denied ever claiming that his “treatment kits” were a “one hundred percent effective cure,” adding “that would be foolish.” Staley also falsely claimed that his medical practice would “absolutely” get all relevant information about each family member when sending out medications for a family treatment pack, when just a week earlier, he had dispensed a “family pack” of hydroxychloroquine, chloroquine, generic Viagra, Xanax, and azithromycin to the undercover agent without collecting any medical information from the agent or the agent’s five supposed family members.
U.S. District Judge Gonzalo P. Curiel also ordered Staley to pay a $10,000 fine and ordered forfeiture of the $4,000 paid by the undercover agent, as well as more than 4,500 tablets of various pharmaceutical drugs, multiple bags of empty pill capsules, and a manual capsule-filling machine.
“At the height of the pandemic, before vaccines were available, this doctor sought to profit from patients’ fears,” said U.S. Attorney Randy Grossman. “He abused his position of trust and undermined the integrity of the entire medical profession. We are committed to enforcing the laws of the United States and protecting patients, including prosecuting doctors who choose to commit crimes.” Grossman commended the prosecution team and federal agents from FBI and FDA-OCI, who worked hard pursuing justice in this case. He also commended U.S. Customs and Border Protection for its assistance with the investigation.
“The defendant used a global pandemic to prey on the public’s fear by offering a 'cure' for COVID-19, and then lied to FBI agents about it,” said FBI Special Agent in Charge Stacey Moy. “I want to thank our federal partners at the U.S. Food and Drug Administration – Office of Criminal Investigations, U.S. Customs and Border Protection, and the United States Attorney’s Office for their collective efforts in bringing this defendant to justice.”
“The FDA continues to work with its law enforcement partners to protect the public health by identifying, investigating and bringing to justice those who attempt to profit from the pandemic by offering and distributing COVID-19 treatments with unproven ‘miracle cure’ claims to American consumers,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office.
On May 17, 2021, Attorney General Merrick Garland established the COVID-19 Fraud Enforcement Task Force, led by the Deputy Attorney General, to bring together the full resources of the federal government to bolster fraud enforcement efforts.
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; the public is also 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].
DEFENDANT Case Number 20-CR-1227-GPC
Jennings Ryan Staley, M.D. Age: 44 San Diego, CA
SUMMARY OF CHARGES
Importation Contrary to Law, in violation of Title 18, United States Code, Section 545
Maximum Penalty: Twenty years in prison; fine; special assessment
AGENCY
Federal Bureau of Investigation
U.S. Food and Drug Administration, Office of Criminal Investigations
U.S. Customs and Border Protection
Fourth Defendant in ‘Grandparent Scam’ Network Pleads Guilty to RICO ConspiracyRead the Press Release
A fourth member of a network that operated and facilitated a large-scale “grandparent scam” pleaded guilty to racketeering conspiracy.
According to court documents, Joaquin Lopez, 46, of Hollywood, Florida, was a member of a network of individuals who, through extortion and fraud, induced elderly Americans across the United States to pay up to tens of thousands of dollars each to purportedly help their grandchild or other close family relative. Members of the network contacted elderly Americans by telephone and impersonated a grandchild, other close relative or friend of the victim. They falsely convinced the victims that their relatives were in legal trouble and needed money to pay for bail, for medical expenses for car accident victims or to prevent additional charges from being filed. The defendants and their co-conspirators then received money from victims via various means, including in-person pickup, mail and wire transfer, and then laundered the proceeds, including through the use of cryptocurrency.
“The Department of Justice’s Consumer Protection Branch will continue to investigate and prosecute criminals who target elderly Americans and take advantage of their concern for loved ones,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are grateful to our partners at the U.S. Attorney’s Office for the Southern District of California and the FBI in advancing the department’s efforts against organized elder fraud, and to the San Diego County District Attorney’s Office.”
“These defendants were part of a sophisticated criminal organization that exploited the tremendous love a grandparent has for a grandchild,” said U.S. Attorney Randy Grossman for the Southern District of California. “The victims were financially and emotionally devastated by callous people who thought only of enriching themselves. Because of the diligence of our prosecution team and law enforcement partners, these defendants have been brought to justice.”
“These guilty pleas are a prime example of the collaboration and coordination among our local, state and federal partners who make up San Diego’s Elder Justice Task Force, and the great work being done to protect our elderly population,” said Special Agent in Charge Suzanne Turner of the FBI’s San Diego Field Office. “The task force is committed to aggressively pursuing criminal organizations who prey on our senior citizens, and will utilize all available investigative means to bring them to justice. I would also like to thank the FBI’s Los Angeles Field Office for their continued support in this case.”
Lopez pleaded guilty to conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act. He is scheduled to be sentenced on Aug. 19. He faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Two co-defendants remain pending for trial. Two additional defendants have been charged but remain at large.
The case was investigated by the FBI’s San Diego Field Office, North County Resident Agency, with critical assistance from investigators of the San Diego County District Attorney’s Office.
Trial Attorneys Lauren M. Elfner and Wei Xiang with the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Oleksandra Johnson for the Southern District of California are prosecuting the case.
The department’s extensive and broad-based efforts to combat elder fraud seeks to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Justice Department’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Two More Defendants Plead Guilty in a Nationwide Racketeering Conspiracy Targeting the ElderlyRead the Press Release
Assistant U. S. Attorney Oleksandra “Sasha” Johnson (619) 546-9769
NEWS RELEASE SUMMARY – May 25, 2022
SAN DIEGO – Two more members of a nationwide “grandparent scam” network have pleaded guilty to conspiracy charges under the Racketeer Influenced and Corrupt Organizations Act known as RICO.
Joaquin Lopez of Hollywood, Florida, pleaded guilty in federal court today; Anajah Gifford of North Hollywood, California, pleaded guilty on May 5, 2022. They are the third and fourth of eight defendants to plead guilty; two are pending trial and two are fugitives.
According to court documents, the defendants were members and associates of a criminal enterprise that engaged in extortion and fraud to swindle more than $2 million from 70-plus elderly victims across the nation. At least 10 elderly victims who resided in San Diego County lost over $300,000 to the fraud. From approximately November 1, 2019, until October 14, 2020, the members of the criminal enterprise targeted elderly Americans, contacting them by phone and feeding them phony stories that their grandchildren were in legal trouble and needed money to pay for bail, pay medical expenses for car accident victims, or prevent additional charges from being filed. Members and associates obtained money from victims through in-person cash pick-ups, by mail or commercial carriers, or via wire transfers. Conspirators laundered the proceeds by transferring the funds or converting from fiat currency to cryptocurrency.
According to defendant Joaquin Lopez’s plea agreement, Lopez used bank accounts under his control to funnel victim proceeds for codefendant Tracy Knowles. As part of the guilty plea, Lopez agreed to forfeit $62,700 in proceeds from the offense. Lopez will also be subject to an order of restitution to the victims of the offense in the amount of at least $136,500.
According to defendant Anajah Gifford’s plea agreement, Gifford conducted cash pick-ups from victims under codefendant Timothy Ingram’s direction, and helped Ingram pay unlawful proceeds to codefendant Knowles. She also recruited others to obtain additional bank accounts to receive money transfers from victims. As part of her guilty plea, Gifford agreed to forfeit $52,750 in proceeds she personally received from the offense and pay at least $1,235,406.93 to the victims in restitution.
“These defendants were part of a sophisticated criminal organization that exploited the tremendous love a grandparent has for a grandchild,” said U.S. Attorney Randy Grossman. “The victims were financially and emotionally devastated by callous people who thought only of enriching themselves. Because of the diligence of our prosecution team and law enforcement partners, these defendants have been brought to justice.”
“The FBI is proud to work with our local, state, and federal partners on San Diego’s Elder Justice Task Force to protect our elderly population with cases such as this,” said FBI Special Agent in Charge Stacey Moy. “Our senior citizens deserve better than to be targeted by these criminal organizations and we are committed to pursuing them regardless of where they are located.”
This case was investigated by the San Diego Elder Justice Task Force, which is a collaboration between the U.S. Attorney’s Office, the FBI, the District Attorney’s Office and all San Diego County law enforcement agencies. The Elder Justice Task Force was established in February 2021 and is believed to be the first comprehensive law enforcement effort for this purpose anywhere in the country. The case was prosecuted by the U.S. Attorney’s Office and the Department of Justice’s Consumer Protection Branch.
DEFENDANTS Case Number 21cr2216-CAB
Tracy Adrine Knowles 30 Orlando, Florida
Fugitive
Adonis Alexis Butler Wong 30 Northbay Village, Florida
Fugitive
Timothy Ingram, AKA Bleezy 29 North Hollywood, California
In custody. Sentencing set for July 29, 2022.
Anajah Gifford 23 North Hollywood, California
In custody. Sentencing set for August 26, 2022.
Lyda Harris 74 Laveen, Arizona
Released on bond. Pending trial.
Joaquin Lopez 46 Hollywood, Florida
Released on bond. Sentencing set for August 19, 2022.
Jack Owuor 25 Paramount, California
Released on bond. Sentencing set for July 15, 2022.
Tracy Glinton 35 Orlando, Florida
Released on bond. Pending trial.
SUMMARY OF CHARGES
Title 18, U.S.C., Sec. 1962(d) – Conspiracy to Conduct or Participate in an Enterprise
Through a Pattern of Racketeering Activity
Maximum penalty: Twenty years in prison and a fine of not more than the greater of twice the amount of gain or loss associated with the offense or $250,000
AGENCIES
Department of Justice’s Consumer Protection Branch
San Diego Elder Justice Task Force, which includes:
San Diego FBI
San Diego County District Attorney’s Office
San Diego Police Department
San Diego Sheriff’s Department
Carlsbad Police Department
Oceanside Police Department
Escondido Police Department
Chula Vista Police Department
El Cajon Police Department
La Mesa Police Department
National City Police Department
Coronado Police Department
Postal Employee and Son Charged with Conspiracy Involving Stolen Postal Money Orders Worth over $5 MillionRead the Press Release
Assistant U. S. Attorney Eric R. Olah (619) 546-7540
NEWS RELEASE SUMMARY – May 23, 2022
SAN DIEGO – U.S. Postal Service employee Dewayne Morris Sr. and his son and namesake are charged in federal court with multiple felony counts of bank fraud and conspiracy in connection with the theft of $5 million in Postal money order forms.
Morris Sr. is charged along with his son, Dewayne Morris Jr., and four others, with conspiring to convert the stolen money order forms into cash.
According to the indictment, Morris Sr., then a supervisor for post offices in Venice, Playa del Rey, and Marina del Rey, ordered and received 10,000 blank Postal money order forms. A subsequent audit revealed that approximately 5,100 of those 10,000 money order forms were missing. With a maximum value of $1,000 per money order, the potential value of the missing money order forms is $5.1 million. Contrary to Morris Sr.’s claim to investigators that he properly returned some of the 10,000 money order forms, the indictment alleges that his son, Morris Jr., distributed the missing money orders to co-conspirators.
The indictment further alleges that the money orders Morris Jr. distributed to co-conspirators were materially altered to appear as if they had been paid for and lawfully issued by a post office, when in fact they had not. Morris Jr. also provided co-conspirators with counterfeit driver’s licenses bearing fictious identities. The co-conspirators used those counterfeit documents to open checking and savings accounts at financial institutions throughout the country, deposited the stolen money orders into the accounts, and withdrew the cash proceeds before the financial institutions detected the fraud.
In addition to the conspiracy charge, Morris Sr. and Morris Jr. are charged with three counts of bank fraud, each of which carries a statutory maximum of 30 years’ imprisonment. Additionally, Morris Jr. is charged with a fourth bank fraud count and an aggravated identity theft count based on a separate scheme involving the personal identifiable information of others.
“The indictment alleges that this father-and-son duo took advantage of the elder’s insider position to steal millions of dollars,” said U.S. Attorney Randy Grossman. “We and our law enforcement partners are committed to seeking justice in this case and others like it.” Grossman thanked the prosecution team, U.S. Postal Inspection Service, and U.S. Postal Service Office of the Inspector General for their hard work on this case.
“The U.S. Postal Inspection Service remains steadfast in our commitment and dedication to investigate financial fraud and prevent the theft of Postal Service products from criminal attack,” said Carroll Harris, Inspector in Charge of the Los Angeles Division. “We appreciate the collaborative efforts of our law enforcement partners, the U.S. Postal Service Office of the Inspector General, in bringing these defendants to justice.”
DEFENDANTS Case Number 22-CR-1037-WQH
Dewayne Morris, Senior Age: 62 Inglewood, CA
Dewayne Morris, Junior Age: 39 Inglewood, CA
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison; $250,000 fine or twice the pecuniary gain/loss
Bank Fraud – Title 18, U.S.C., Section 1344(2)
Maximum penalty: Thirty years in prison; $1 million fine or twice the pecuniary gain/loss
Aggravated Identity Theft – Title 18, U.S.C., Section 1028A
Penalty: Mandatory two years in prison
Forfeiture – Title 18, U.S.C., Sections 981(a)(1)(C), 982(a)(2), 982(b) and Title 28 U.S.C. Section 2461(c)
AGENCIES
United States Postal Inspection Service
United States Postal Service, Office of the Inspector General
*The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty
Man Sentenced to 60 months in Prison for Attempting to Use Two Molotov Cocktails on an Occupied National City ResidenceRead the Press Release
Assistant U. S. Attorney Shital H. Thakkar (619) 546-8785
NEWS RELEASE SUMMARY – May 23, 2022
SAN DIEGO – Sylvester Andrews Jr. was sentenced in federal court today to 60 months in prison for possessing and ultimately attempting to use incendiary devices known as Molotov cocktails. Andrews attempted to use the Molotov cocktails by throwing them through the window of a National City residence, which was occupied by three juvenile victims who were home alone at the time.
On May 20, 2018, the National City Police and Fire Departments responded to a vehicle fire outside of the victims’ residence. When personnel arrived, they found a vehicle completely engulfed in flames. Fire Investigators ultimately determined that the vehicle fire was set intentionally. A subsequent investigation showed beach towels were doused with liquid, possibly gasoline, and placed on the vehicle prior to the towels being set aflame. The officers also noticed a window at the victims’ residence was broken, and after the car fire was extinguished, they conducted a welfare check. The officers discovered the threejuvenile victims and the Molotov cocktails which had not detonated.
An investigation led by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives revealed that Andrews had a dispute with a parent of the juvenile victims. In the early morning hours of May 20, 2018, Andrews went to the victims’ residence and threw both Molotov cocktails through a bedroom window, neither of which ignited fully.
The ATF Forensic Science Laboratory identified the liquid in both Molotov cocktails as gasoline. The use of surveillance cameras, text messages, DNA evidence, and other evidence revealed Andrews’ involvement.
“This defendant’s actions put three children at great risk because of a grown-up grudge, and the price for that is prison,” said U.S. Attorney Randy Grossman. “This is a fitting sentence for an offender who used an explosive device to settle a score.” Grossman thanked the prosecution team, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the National City Police Department, National City Fire, and Carlsbad Police Department for their excellent work on this case.
“ATF has the expertise to determine the origin and cause of fires and explosions under the most challenging and complex circumstances due to its highly trained forensic investigators and its nationwide state-of-art laboratories,” said ATF Los Angeles Field Division Special Agent in Charge Monique Villegas. “ATF brings a unique set of resources to fire and explosives investigations, which includes special agent certified fire investigators, certified explosives specialists, and chemists among others. ATF will continue to collaborate with its local partners perfecting charges against individuals whose criminal actions devastate lives and destroy personal property.”
DEFENDANT Case Number 20-cr-02942-AJB
Sylvester Andrews Jr. Age: 39 Spring Valley, CA
SUMMARY OF CHARGES
Malicious Damage to Buildings or Real Property Affecting Interstate, in violation of 18 U.S.C. § 844(i);
Possession of an Unregistered Destructive Device, in violation of 26 U.S.C. § 5861(d).
Maximum penalty: Twenty years in prison and a $250,000 fine per count
AGENCY
Bureau of Alcohol, Tobacco, Firearms and Explosives
National City Police Department
National City Fire Department
Carlsbad Police 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.
Husband-and-Wife Scientists Plead Guilty to Illegally Importing Potentially Toxic Lab Chemicals and Illegally Forwarding Confidential mRNA Vaccine Research to ChinaRead the Press Release
Assistant U. S. Attorney Alexandra F. Foster (619) 546-6735
NEWS RELEASE SUMMARY – May 19, 2022
SAN DIEGO – Chenyan Wu and Lianchun Chen, a married couple who worked as research scientists for a major American pharmaceutical company, pleaded guilty in federal court today to criminal charges stemming from their efforts to gather confidential mRNA research from that company to advance the husband’s competing laboratory research in China.
The couple has been married since at least 1993. During his career, Wu had worked for multiple pharmaceutical companies, including the major one identified in court records only as “Company A,” where his wife also worked. In 2010, Wu moved to China, and in 2012, he opened a laboratory there, which he named TheraMab. TheraMab focused on mRNA vaccine research.
While her husband was in China, Chen remained in the United States, working for Company A in San Diego from at least 2012 through September 9, 2021. During that time, her research for Company A focused on mRNA vaccines.
According to her plea agreement, from as early as November 2013, through at least June 2018, Chen repeatedly accessed Company A computers and copied confidential Company A materials. She knew she was not allowed to copy these materials, much less provide them to an individual outside the company. Chen emailed those confidential Company A materials to her husband in China over her personal Hotmail account. These confidential Company A materials included PowerPoints and Word documents with DNA and mRNA sequencing data, marked “[Company A] Confidential” and “from [Company A] Vaccine Research & Development.” By 2013, Wu was no longer employed by Company A. He had started TheraMab, a competing laboratory in China focused on mRNA research.
In February 2021, Wu shut down TheraMab in China and attempted to move his laboratory to the United States. He packed up its contents into five suitcases. On May 8, 2021, Wu arrived with the five suitcases at Seattle-Tacoma International Airport on Delta Flight 288, originating in Shanghai, China. He planned to transit through Seattle and had a flight home to San Diego later that day.
Upon entry into the United States, Wu filled out a U.S. Customs form. He did not declare any biological or chemical items on the form, nor did he declare these items in person to the Customs officer while going through Customs Inspection.
While inspecting the defendant’s suitcases, officers discovered chemical and biological samples, medical/biological equipment, and research documentation, all of which had been undeclared and was improperly packaged. They detained the items. Initial inspection revealed about 700 to 1,000 unlabeled centrifuge tubes, which appeared to contain proteins and multiple containers of lab chemicals. Labeled samples appeared to include potentially hazardous materials. In fact, one bottle contained a warning photo with the skull and crossbones image and the words “harmful if swallowed … toxic if inhaled.” Another bottle contained the warning statements “fatal if inhaled … harmful if swallowed.” Customs and Border Protection (CBP) officials seized all five suitcases.
FBI Seattle’s Hazardous Evidence Response Team (HERT) deployed to Seattle Tacoma International Airport to help CBP inventory the items, field screen them for biological and chemical materials, and collect them as evidence. CBP transferred custody of the items to the Seattle HERT, which then repackaged the items safely and submitted them to an FBI laboratory for further analysis.
On May 18, 2021, FBI Agents interviewed Wu at his home in San Diego. Agents showed Wu a copy of the Customs form that he had filled out. Wu acknowledged that he understood the importance of those forms; he knew he needed to fill out this form accurately; and he acknowledged that he knew the proper ways to ship chemicals internationally. Wu added that China had strict rules and paperwork to ship to the United States and that was why he wanted to “take a gamble to be honest” when he brought chemicals and biological materials illegally into the United States in his luggage.
On June 25, 2021, the FBI Laboratory Division Scientific Response and Analysis Unit issued a report identifying imidazole, nickel sulfate, ethidium bromide, ammonium persulfate and chloroform in the bottles, which Wu brought with him from China. These are all identified as hazardous materials under U.S. Department of Transportation regulations and must be reported upon entry into the United States.
Chen is scheduled to be sentenced on August 11, 2022, before U.S. Magistrate Judge Andrew Schopler. Wu is scheduled to be sentenced on August 12, 2022, before U.S. District Judge Cathy Ann Bencivengo.
“These are serious computer fraud and smuggling crimes,” said U.S. Attorney Randy Grossman. “One defendant failed to protect her employer’s confidential and important research, and instead used it to her and her husband’s advantage. Compounding the harm, the other defendant put travelers in harm’s way by illegally transporting his laboratory’s hazardous chemicals back to the United States.” Grossman thanked the prosecution team, the FBI and Customs and Border Protection for their excellent work on this case.
“The defendants used their placement and access to obtain and illegally share confidential lab research for their own benefit,” said FBI Special Agent in Charge Stacey Moy. “Their attempt to smuggle hazardous material into the United States was thankfully foiled by Customs and Border Protection upon entry. The FBI is proud to work with our federal partners and I specifically want to thank Customs and Border Protection at Seattle Tacoma International Airport, FBI Seattle’s Hazardous Evidence Response Team, and the FBI Laboratory’s Scientific Response and Analysis Unit for their valuable assistance in this case.”
DEFENDANTS Case Number 22CR00052-CAB
Chenyan Wu (1) Age: 58 San Diego, CA
Lianchun Chen (2) Age: 51 San Diego, CA
SUMMARY OF CHARGES
Wu - Smuggling Goods (18 U.S.C. § 545)
Maximum penalty: Twenty years in prison and $250,000 fine
Chen – Computer Fraud (18 U.S.C. § 1030(a)(2)(C))
Maximum penalty: One year in prison and $250,000 fine
AGENCY
Federal Bureau of Investigation
Homeland Security Investigations
Customs and Border Protection
Brazilian National Pleads Guilty in Nationwide Fraud that Exploited App-Based Food Delivery Customers During PandemicRead the Press Release
Assistant U.S. Attorney Kevin Mokhtari (619) 546-8402
NEWS RELEASE SUMMARY – May 18, 2022
SAN DIEGO – Gustavo De Avila Moreira Farinha today became the last of five Brazilian nationals to plead guilty in a nationwide fraud and identity theft scheme.
De Avila pleaded guilty before U.S. Magistrate Judge Jill Burkhardt to wire fraud conspiracy, money laundering and multiple aggravated identity theft charges.
In May 2021, five Brazilian nationals, including De Avila, were charged with engaging in a nationwide conspiracy to establish fraudulent driver accounts with multiple internet and app-based rideshare and food delivery companies, including by using identities stolen from the customers of those companies.
According to his plea agreement, De Avila admitted that between 2018 and May 2021, he and his co-conspirators, all of whom were Brazilian nationals living in the United States illegally, operated a scheme to defraud major app-based rideshare and food delivery companies. In Spring 2020, with the COVID-19 pandemic in full swing, the conspirators shifted away from the rideshare companies, which saw a dramatic decrease in traffic, to food, grocery and other delivery companies, which saw a corresponding and significant increase in demand. De Avila and his co-conspirators exploited the surge in demand by creating new driver accounts with stolen identities, collecting referral bonuses from the fraudulent accounts, and by using, renting, and selling the accounts to others on these platforms.
De Avila and his co-conspirators also admitted that once they received payment from the rideshare and delivery companies, they laundered the money both to promote the conspiracy and to conceal the fact that the source of the funds were an elaborate fraudulent scheme. While the fraudulent scheme targeted popular app-based rideshare and food delivery services, De Avila and his co-conspirators also stole and used the identities of close to 100 victims to create fraudulent driver accounts on the various platforms over the three-year conspiracy.
“As of today, all five defendants in this case have admitted their elaborate scheme to steal the identities of hundreds of unsuspecting victims, many of whom turned to food delivery services to survive the pandemic,” said U.S. Attorney Randy Grossman. “Identity theft can be a nightmare of frustration and angst for victims who struggle to reclaim their good names. These defendants are the ones struggling now.” Grossman thanked the prosecution team and agents from Homeland Security Investigations for their excellent work to achieve justice in this case.
“Today’s guilty plea is an example that this type of criminal conduct will not be tolerated,” said HSI San Diego acting Special Agent in Charge Juan Munoz. “Homeland Security Investigations agents will continue to investigate allegations of wire fraud, money laundering, and identity fraud to ensure those who participate in these illegal activities will be brought to justice. We also remain committed to working with the prosecutors to bring charges against anyone who deliberately harms and deceives others for their own personal profit.”
Sentencing for De Avila is scheduled for August 29, 2022, at 8:30 a.m. before U.S. District Judge Gonzalo P. Curiel.
DEFENDANTS Case Number 21CR1538-GPC
Gustavo De Avila Moreira Farinha Age: 30 Brazil
Tatiane Pereira Arantes Age: 38 Brazil
Natalia Magalhaes Rocha Age: 30 Brazil
Leonardo Trulsen De Oliveira Age: 30 Brazil
Thassya Da Silva Alves Age: 30 Brazil
SUMMARY OF CHARGES
Count 1 - Conspiracy to Commit Wire Fraud – Title 18, U.S.C., 1349
Maximum Penalty: Twenty years in prison, $250,000 fineCount 2 – Conspiracy to Launder Monetary Instruments – Title 18, U.S.C., 1956(a)(1)(A)(i), (b)(i), and 1956(h)
Maximum Penalty: Twenty years in prison, $500,000 fine or twice the value of the monetary instruments
Counts 3-17- Aggravated Identity Theft – Title 18, U.S.C., 1028A
Maximum Penalty: Mandatory-minimum two years in prison, to run consecutively to the specified felony.
AGENCY
Homeland Security Investigations
Six Charged with Trafficking More Than 1,750 Pounds of Cocaine; Investigation Led to Discovery of Cross-Border TunnelRead the Press Release
Assistant U. S. Attorneys Lawrence A. Casper (619) 546-6734, Paul Benjamin (619) 546-7579, James Redd (619) 546-9661
NEWS RELEASE SUMMARY – May 16, 2022
SAN DIEGO – A federal drug investigation has resulted in the discovery of a sophisticated cross-border tunnel and charges against six people for conspiring to distribute 1,762 pounds of cocaine.
The subterranean passageway, stretching from Tijuana, Mexico to a warehouse in Otay Mesa just east of the Port of Entry, is estimated to be about 1,744 feet long, 61 feet deep and 4-feet in diameter, with reinforced walls, a rail system, electricity and a ventilation system.
The defendants include Mario Jaramillo of Huntington Beach; Adrian Enriquez of Perris, Calif.; Juan Cruz of San Ysidro; and Vanessa Ramirez, Luz de Luna Olmos and Manuel Perez of San Diego. All are charged with cocaine trafficking; Olmos and Ramirez are also charged with methamphetamine and heroin trafficking. In addition to the 1,762 pounds of cocaine, authorities seized 164 pounds of methamphetamine and 3.5 pounds of heroin.
READ the complaintThe tunnel was discovered just after midnight on Friday by U.S. law enforcement officials from Homeland Security Investigations who were conducting surveillance on a National City residence that was previously used as a stash house in a cocaine smuggling event on March 2. That event had resulted in the arrest of one person and the seizure of 28 kilograms of cocaine.
According to the federal complaint, at about 11:45 a.m., officials observed as Olmos and Ramirez drove away from that National City residence in a silver Nissan Frontier pickup truck to Harbor Freight Tools store in Chula Vista, where they retrieved large cardboard boxes from a dumpster and put them into the pickup truck.
The women then entered the Harbor Freight Tools store and purchased wheeled carts that are typically used to move heavy items, the complaint said. They later returned to the residence in the pickup truck and removed the boxes from the back of the pick-up bed and carried them inside the residence. At about 1:20 p.m., Olmos left the residence and drove to a Walmart store, where she purchased additional cardboard boxes and transported them back to the residence.
At approximately 2:30 p.m., Ramirez drove the pickup away from the residence to a warehouse located at 9986 Via De La Amistad, Unit A, in San Diego. The warehouse is approximately 300 feet north of the U.S.-Mexico border fence.
Ramirez drove the pickup into the bay of the warehouse and the roll-up door was shut immediately after. At approximately 4:40 p.m., the warehouse door opened. Ramirez exited the warehouse in the pickup and drove back to the residence with law enforcement conducting surveillance.
In the hours that followed, law enforcement officials saw five other cars come and go from either the residence, the warehouse or both. Those vehicles were ultimately stopped by law enforcement, drugs were seized from the vehicles and the residence, and defendants associated with the cars and or residence were arrested.
Upon searching the warehouse, agents uncovered the sophisticated cross-border tunnel exit point carved out of the cement floor.
“There is no more light at the end of this narco-tunnel,” said U.S. Attorney Randy Grossman. “We will take down every subterranean smuggling route we find to keep illicit drugs from reaching our streets and destroying our families and communities.”
Grossman thanked the prosecution team, HSI San Diego Costa Pacifico Money Laundering Task Force, and its partners from the San Diego Sheriff’s Department, Drug Enforcement Administration, and Customs and Border Protection for their excellent work on this case. “This tunnel was discovered because of the patience and tenacity of federal agents who are passionate about protecting their communities from the scourge of drug addiction and related violence.”
“The San Diego law enforcement community has multiple investigative task forces that highly prioritize tunnel detection- exemplified by this tunnel discovery by the Homeland Security Investigations (HSI) San Diego led Costa Pacifico Money Laundering Task Force,” said HSI San Diego Special Agent in Charge Chad Plantz. “The San Diego law enforcement community throughout the years has consistently shown its ability to detect and remediate tunnels while bringing those responsible to justice.”
There have been 90 subterranean passages discovered in the Southern District of California since 1993. Of those, 27 were considered sophisticated. The last tunnel discovered in the Southern District of California was in March 2020.
The defendants are scheduled to be arraigned this afternoon by U.S. Magistrate Judge Jill Burkhardt.
The discovery of the tunnel resulted from an ongoing investigation by members of the San Diego Costa Pacifico Money Laundering Task Force, which include Homeland Security Investigations, San Diego Sheriff’s Department, Drug Enforcement Administration, Customs and Border
Protection and the United States Attorney’s Office.DEFENDANTS Case Number 22mj01680
Mario Jaramillo 55 Huntington Beach
Adrian Enriquez 31 Perris
Manuel Perez 49 San Diego
Juan Cruz 48 San Ysidro
Vanessa Ramirez 31 San Diego
Luz de Luna Olmos 43 San Diego
SUMMARY OF CHARGES
Count 1: Conspiracy to Distribute Cocaine (all six defendants) – Title 21, U.S.C., Sections 841 and 846;
Maximum penalty: Mandatory minimum sentence of 10 years and maximum of life in prison and $1 million fine
Count 2: Conspiracy to Distribute Methamphetamine (Olmos and Ramirez) – Title 21 U.S.C. Sections 841 and 846;
Maximum penalty: Mandatory minimum sentence of 10 years and maximum of life in prison and $1 million fine
Count 3: Conspiracy to Distribute Heroin (Luz de Luna Olmos & Vanessa Ramirez) – Title 21 U.S.C. Sections 841 and 846;
Maximum penalty: Mandatory minimum sentence of 10 years and maximum of life in prison and $1 million fine
AGENCIES
Homeland Security Investigations
San Diego Sheriff’s Department
United States Border Patrol
*The charges and allegations contained in a complaint or indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Two Defendants Sentenced to Prison for Pump-and-Dump Stock Fraud SchemeRead the Press Release
Assistant U. S. Attorney Aaron P. Arnzen (619) 546-8384
NEWS RELEASE SUMMARY – May 12, 2022
SAN DIEGO – Gannon Giguiere and Oliver Lindsay were sentenced to prison today for participating in a pump-and-dump securities fraud scheme. Lindsay, who lived in the Cayman Islands at the time of his arrest, received a 17-month prison sentence, and Giguiere, from Laguna Beach, California, was sentenced to 12 months in prison.
When Giguiere pleaded guilty in 2019, he admitted to manipulating the market for the stock of Kelvin Medical, Inc., a small medical device company. Giguiere conspired to pump up the price and volume of these stocks through manipulative trading and/or a stock promotion website designed to get unwitting investors interested in buying the stock. After the stock prices rose and he dumped the shares, Giguiere pocketed more than $1.4 million in fraudulent proceeds from these schemes. Lindsay also pleaded guilty in 2019, admitting that he engaged in manipulative trading with the same goal – to artificially increase the price and trading volume of Kelvin Medical stock.
In handing down the sentence, U.S. District Judge William Q. Hayes also ordered defendants to make restitution payments to victims of their scheme in the amount of $187,893.43.
“These are fitting sentences for defendants who caused significant harm to investors,” said U.S. Attorney Randy Grossman. “I trust that this will deter others who would participate in schemes that harm the integrity of the United States financial markets.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.
“The FBI is committed to investigating those who prey on unsuspecting investors for their own financial gain,” said FBI Special Agent in Charge Stacey Moy. “These defendants will now face the consequences for their coordinated investment fraud scheme.”
DEFENDANTS Case Number 18cr3071-WQH
Gannon Giguiere Age: 49 Laguna Beach, CA
Oliver Lindsay Age: 44 Vancouver, Canada
SUMMARY OF CHARGES
Conspiracy to Commit Securities Fraud – Title 18, U.S.C., Section 371
AGENCY
Federal Bureau of Investigation
Man Charged with Using Stolen Identities of UCSD Students in Bank and Pandemic Unemployment Insurance Fraud SchemesRead the Press Release
Assistant U. S. Attorney Eric R. Olah (619) 546-7540
NEWS RELEASE SUMMARY – May 11, 2022
SAN DIEGO – Nehemiah Joel Weaver was indicted by a federal grand jury for using stolen personal information of University of California San Diego students in furtherance of bank and pandemic unemployment insurance fraud schemes.
Weaver is charged with 60 felony counts, including bank fraud, mail fraud, wire fraud, aggravated identity theft, extortion, and obstruction of justice.
Weaver’s co-defendant, Mia Nikole Bell, entered a guilty plea last week to one count of felony bank fraud. In her plea agreement, Bell admitted that when she was an employee at UCSD, she stole the personal identifiable information (“PII”) of at least eight students and shared it with the intent to facilitate a bank fraud scheme. Bell’s sentencing is set for August 15, 2022.
The indictment charges Weaver with using identities he obtained from Bell and other sources. Specifically, Weaver used stolen identities to apply for accounts and loans at a financial institution, to obtain more than $200,000 in benefit payments from the State of California’s Employment Development Department (“EDD”), and to defraud the State of Arizona’s Department of Economic Security (“DES”) out of more than $27,000.
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.
Additionally, the indictment includes an extortion charge based on text messages Weaver sent to an acquaintance demanding money and threatening that a third person would be “charged with fraud.” The indictment also includes an obstruction of justice count based in part on Weaver sending to a victim a photograph of the victim’s minor daughter along with text messages reading “Lol so dead you don’t even know it yet” and “Can’t wait to see the look on your face. Paid good money to see it.”
U.S. Magistrate Judge Barbara L. Major ordered Weaver detained pending trial based on a serious risk of flight and danger to the community. The next court hearing is a Motion Hearing and Trial Setting before U.S. District Judge Gonzalo P. Curiel on June 13, 2022.
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: 36 San Diego, CA
Mia Nikole Bell Age: 31 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
Mail 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
Penalty: Mandatory two years in prison
Extortion – Title 18, U.S.C., Section 875(d)
Maximum penalty: Two years in prison
Obstruction of Justice – Title 18, U.S.C., Section 1503
Maximum penalty: Ten years in prison; $250,000
Forfeiture – Title 18, U.S.C., Sections 981(a)(1)(C), 982(a)(2), 982(b) and Title 28 U.S.C. Section 2461(c)
AGENCIES
United States Secret Service
San Diego Police Department
*The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Third Defendant in ‘Grandparent Scam’ Network Pleads Guilty to RICO ConspiracyRead the Press Release
A third member of a network that operated and facilitated a large-scale “grandparent scam” pleaded guilty to racketeering conspiracy.
According to charges announced in August 2021, Anajah Gifford, 23, of North Hollywood, California, was a member of a network of individuals who, through extortion and fraud, induced elderly Americans across the United States to pay thousands to tens of thousands of dollars each to purportedly help their grandchild or other close family relative. Members of the network contacted elderly Americans by telephone and impersonated a grandchild, other close relative or friend of the victim. They falsely convinced the victims that their relatives were in legal trouble and needed money to pay for bail, for medical expenses for car accident victims, or to prevent additional charges from being filed. The defendants and their co-conspirators then received money from victims via various means (including in-person pickup, mail and wire transfer) and laundered the proceeds, including through cryptocurrency.
“The Department of Justice’s Consumer Protection Branch will pursue and prosecute individuals who target older Americans by preying on their concern for loved ones,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “We are grateful to our partners at the U.S. Attorney’s Office for the Southern District of California and the FBI for their work in advancing the department’s efforts to combat organized elder fraud, and for the assistance the San Diego County District Attorney’s Office provided with this investigation.”
“This was a despicable scam that packed an emotional punch for its elderly victims,” said U.S. Attorney Randy Grossman of the Southern District of California. “It’s heartless to tell grandparents they must pay tens of thousands of dollars to rescue their beloved grandchildren from terrible trouble. These are serious crimes and there should be serious penalties.” Grossman thanked the prosecution team, state and federal law enforcement agency partners, and the Department of Justice’s Consumer Protection Branch for their excellent work on this case.
“These guilty pleas are a prime example of the collaboration and coordination among our local, state, and federal partners who make up San Diego’s Elder Justice Task Force, and the great work being done to protect our elderly population,” said Special Agent in Charge Suzanne Turner of the FBI San Diego Field Office. “The task force is committed to aggressively pursuing criminal organizations who prey on our senior citizens, and we will utilize all available investigative means to bring them to justice. I would also like to thank the FBI’s Los Angeles Field Office for their continued support in this case.”
Gifford pleaded guilty to conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act. She is scheduled to be sentenced on August 5. She faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Three co-defendants remain pending for trial. Two additional defendants have been charged but remain at large.
The case was investigated by the FBI’s San Diego Field Office, North County Resident Agency, with critical assistance from investigators of the San Diego County District Attorney’s Office.
Trial Attorneys Lauren M. Elfner and Wei Xiang with the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Oleksandra Johnson of the Southern District of California are prosecuting the case.
The department’s extensive and broad-based efforts to combat elder fraud seeks to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Southern California Center for Autistic Children Pays $650,000 to Resolve Allegations of Fraudulent BillingRead the Press Release
Assistant U. S. Attorney Dylan M. Aste (619) 546-7621
NEWS RELEASE SUMMARY – May 9, 2022
SAN DIEGO – Prism Behavioral Solutions has paid $650,000 to resolve allegations that it billed the state’s Medicaid Program, known as Medi-Cal, for services to autistic children without actually providing care to the children, according to a settlement agreement signed by Prism Behavioral Solutions, the United States, and the State of California.
Prism Behavioral Solutions provides treatment to children diagnosed with autism and other related disorders through therapy called Applied Behavioral Analysis. Prism Behavioral Solutions maintains a corporate address in Woodland Hills, California, and provides medical services to patients in Southern California. The United States and the State of California alleged that Prism Behavioral Solutions violated the federal False Claims Act and the California False Claims Act by knowingly submitting false claims to Medi-Cal for medical services that Prism Behavioral Solutions did not perform from September 2016 through December 2019. According to a whistleblower’s complaint, this included Prism Behavioral Solutions billing Medi-Cal for cancelled appointments.
“Billing government health care programs for services not rendered negatively impacts the entire health care system,” said U.S. Attorney Randy S. Grossman. “This settlement shows our continuing commitment to protect the integrity of government health care programs and other taxpayer-funded programs. We commend the whistleblower in this case for coming forward, and the team of federal and state agency partners and Assistant U.S. Attorneys for their work on this case.”
This settlement resolves the allegations in a former Prism Behavioral Solutions employee’s whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which permit private individuals to sue for false claims on behalf of the government and to share in a recovery. The civil lawsuit was filed in the Southern District of California and is captioned United States and the State of California, ex rel. Mason v. Prism Autism Foundation, 19-CV-0043-W (BLM). As part of this settlement, the whistleblower will receive $130,000.
“Prism had the important responsibility of supporting and caring for children and young adults with autism spectrum disorders,” said Attorney General Rob Bonta. “Instead of fulfilling its obligation to the families under its care, Prism is alleged to have filed false claims and misused state taxpayer money. These allegations are shameful and these families deserved respect and dignity, not to be used to cheat state resources. I am grateful to the U.S. Attorney’s Office for their involvement in this investigation, which helped bring justice to these families and California taxpayers. My office will continue to hold accountable bad actors who hurt the health and well-being of Californians.”
The resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was handled by Assistant U.S. Attorney Dylan M. Aste of the U.S. Attorney’s Office for the Southern District of California; the Office of Inspector General for the U.S. Department of Health and Human Services; and the California Department of Justice, Division of Medi-Cal Fraud and Elder Abuse.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
San Diego Man Sentenced for Sex Trafficking of ChildrenRead the Press Release
Assistant U. S. Attorney Joseph Orabona (619) 546-7951
NEWS RELEASE SUMMARY – April 26, 2022
SAN DIEGO – Jonathan Madison of San Diego was sentenced in federal court yesterday to 100 months in prison for knowingly recruiting, advertising, and soliciting a teenage girl to engage in commercial sex acts.
Madison pleaded guilty in February 2021. In his plea agreement, Madison admitted that he transported underage girls and women and provided them to customers for commercial sex acts, which took place in California and Colorado from November 2017 through April 2020. During this time, Madison transported, provided, maintained, and obtained an underage girl (while she was 15 and 16 years old) for the purpose of her to engage in commercial sex acts, including in San Diego County. As part of his human trafficking activities, Madison caused online advertisements of the underage girls and women to be posted on various websites for customers to solicit them for commercial sex.
Madison also admitted that he videotaped himself having sexual intercourse with an underage girl and later transmitted the video to her by cell phone.
Madison, aka “Jay Jay,” “Boobutt,” and “JT,” was arrested in April 2020 on sex trafficking charges and ordered detained without bond by the Court. A federal grand jury returned an indictment in May 2020 against Madison charging him with sex trafficking of a minor.
“This is a fitting sentence for a man engaged in trafficking of children,” said U.S. Attorney Randy Grossman. “Our office will continue to seek justice when our community’s most vulnerable victims are subjected to these heinous crimes.” Grossman thanked the prosecution team and members of the San Diego Human Trafficking Task Force for their excellent work on this case.
“Today’s sentence sends a strong message to those who intentionally target and victimize children,” said FBI Special Agent in Charge Stacey Moy. “The FBI and our law enforcement partners on the San Diego Human Trafficking Task Force will use all investigative resources to identify and prosecute those who prey on minors.”
Madison has been detained in custody since his arrest in April 2020.
At the sentencing hearing today, U.S. District Judge Cynthia A. Bashant not only imposed the 100-month prison sentence, but also ordered Madison to serve a five-year term of supervised release and to pay a $5,000 mandatory penalty assessment pursuant to the Justice for Victims of Trafficking Act. Madison will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
DEFENDANT Case Numbers: 20CR1228-BAS
Jonathan Madison Age: 31 San Diego, CA
SUMMARY OF CHARGES
Sex Trafficking of a Minor, in violation of Title 18, United States Code, Section 1591
Maximum Penalties: 10-year mandatory minimum and a maximum of life in prison; mandatory Sex Offender Registration; a maximum term of supervised release of life; 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
United States District Court Appoints Randy S. Grossman to Serve as U.S. AttorneyRead the Press Release
Media Relations Director Kelly Thornton (619) 546-9726 or [email protected]
NEWS RELEASE SUMMARY – April 20, 2022
SAN DIEGO – The U.S. District Court has appointed Randy S. Grossman to remain as the U.S. Attorney for the Southern District of California.
“It is a tremendous honor and privilege to serve as the U.S. Attorney,” Grossman said. “I am grateful to the district judges for appointing me to serve in this special role, and I’m proud to work beside members of this talented office and our law enforcement community to protect our district and seek justice on behalf of the United States”
Grossman, who previously served as the First Assistant U.S. Attorney, began serving as Acting U.S. Attorney upon the resignation of former U.S. Attorney Robert Brewer on February 28, 2021. Attorney General Merrick Garland then appointed Grossman to be the interim U.S. Attorney, effective December 26, 2021, and Grossman was to serve in that role for 120 days. The United States District Judges in the Southern District of California have voted to appoint Grossman as U.S. Attorney until the appointment and qualification of a successor to the Southern District of California as provided by law. An order signed by the district court judges was entered on April 19, 2022, and Grossman’s appointment under that order becomes effective on April 25, 2022.
The Southern District of California encompasses San Diego and Imperial Counties. The U.S. Attorney serves as the chief federal law enforcement official for the district.
Grossman joined the U.S. Attorney’s Office in March 2020. He served in the Border Enforcement Section and the Major Frauds & Public Corruption Section. He was selected to become First Assistant U.S. Attorney in September 2020.
Grossman began his legal career as a Deputy District Attorney for Ventura County and then San Diego County. During his more than eight years as a state prosecutor, Grossman tried more than 70 cases, including homicides and other crimes of violence. Grossman also worked in private practice as a partner at two international law firms. His practice areas included complex civil litigation, white collar criminal defense, corporate internal investigations and pro bono representation of refugees seeking asylum.
Three Sentenced to Prison in Nationwide Card Fraud, Money Laundering SchemeRead the Press Release
Assistant U. S. Attorney Nicholas Pilchak (619) 546-9709
NEWS RELEASE SUMMARY – April 20, 2022
SAN DIEGO – Three men were sentenced in federal court today for engaging in a years-long, nation-wide fraud conspiracy that stole victims’ financial information from ATMs and gas pumps in San Diego and across the country, and then used the stolen information to make fake credit and debit cards.
Davit Simonyan was sentenced to 46 months in prison, together with forfeiture of $642,347.16 and restitution of $116,408.00. His brother, Vahram Simonyan, was sentenced to 33 months in prison, forfeiture of $642,053.31, and identical restitution. Arsen Galstyan was sentenced to 18 months in prison and $47,796.00 in forfeiture and an identical restitution award, based on his conviction for fraud.
Including today’s defendants, a total of seven people have admitted to participating in the conspiracy, and in a related money laundering conspiracy, that together netted over $1 million in ill-gotten gains.
In sentencing the men, U.S. District Judge Michael M. Anello observed that “this was a huge criminal enterprise, nationwide.”
Throughout the scheme, the coconspirators stole unwitting victims’ credit and debit card information by using skimming devices installed in common points of sale such as gas pumps and ATMs. With the stolen information in hand, the conspirators made a host of unauthorized cards that they then used to buy postal money orders and make withdrawals from victims’ accounts. According to court documents, the fraud victimized consumers in New York, Illinois, Missouri, Oklahoma, and across Southern California, including in San Diego.
The defendants’ scheme inflicted both real and attempted losses of at least $1.2 million, according to their plea agreements. The two lead defendants—brothers Davit and Vahram Simonyan—each admitted to obtaining over $642,000 in stolen money over the course of the conspiracy, which stretched from 2017 to 2020. They also acknowledged structuring their withdrawals from the banks to avoid bank reporting requirements. For example, in one month alone, the Simonyan brothers withdrew $91,500 in cash from a single bank account.
Davit Simonyan also staged a phony car accident in order to commit insurance fraud, according to his plea agreement. He planned an accident involving cars insured by two of his codefendants, including Arsen Galstyan, who was also sentenced today. Then Simonyan had one of the damaged vehicles repaired at a collision shop owned by an unindicted co-conspirator who kicked back thousands of dollars to Simonyan and his brother as part of their money laundering scheme. Davit Simonyan admitted that by staging a car accident, he caused the reckless risk of serious bodily injury.
“Identity thieves may believe that they can make easy money by stealing from unwitting victims in our community,” said U.S. Attorney Randy Grossman. “But this office will ensure that those defrauding the public will be brought to justice.” Grossman thanked the prosecution team, the U.S. Secret Service and the U.S. Postal Inspection Service for their excellent work on this case.
“We are thankful to all those who partnered with us in the investigation and prosecution of this organized criminal network. The Secret Service, along with our collaborative law enforcement partners, continue to work tirelessly investigating this type of skimming case, which targets unsuspecting victims,” said San Diego Acting Special Agent in Charge Timothy Scott. “We will continue to use all investigative means necessary to bring to justice those perpetrating these crimes.”
“Today’s sentencing is an example of our commitment and dedication to protect the American public from becoming victimized and to prevent Postal Service products from criminal attack and misuse,” said Carroll Harris, Inspector in Charge of the Los Angeles Division of the U.S. Postal Inspection Service. “Working with our law enforcement partners we seek to stop these criminals and hold them accountable for their actions.”
Other conspirators to face sentencing have all received prison time. On April 21, 2021, co-defendant Arsen Minasyan was sentenced by U.S. District Judge Michael M. Anello to 37 months in custody. He was ordered to forfeit $75,145.90 and to pay restitution to victims in the amount of $109,834.14. Judge Anello sentenced co-defendant Mukuch Mkrtchyan on October 14, 2021, to 24 months in prison, forfeiture of $28,077.11, and restitution of $116,070. Co-defendant Smbat Shahinyan was also sentenced to 24 months in prison and similar financial penalties on January 12, 2022.
The remaining defendant, Gor Plavchyan, is scheduled to be sentenced on May 4, 2022.
Anyone who believes that they may be a victim of this offense can visit the U.S. Department of Justice’s large case website for more information: www.justice.gov/largecases.
DEFENDANTS Age Case Number 20cr314-MMA
- Davit Simonyan 30 Residence: Glendale, California
- Vahram Simonyan 34 Residence: Glendale, California
- Arsen Minasyan 34 Residence: Terminal Island FCI
- Gor Plavchyan 26 Residence: Winnetka, California
- Arsen Galstyan 40 Residence: Glendale, California
- Mukuch Mkrtchyan 32 Residence: Fair Oaks, California
- Smbat Shahinyan 41 Residence: Glendale, California
SUMMARY OF CHARGES
Conspiracy to Launder Monetary Instruments, in violation of Title 18, United States Code, Section 1956(h) (Defendants 1 through 3 only)
Maximum Penalty: twenty years in prison; fine of $500,000 or twice the value of the property involved
Conspiracy to Possess Fifteen or More Unauthorized Access Devices, in violation of Title 18, United States Code, Sections 1029(b)(2), 1029(a)(3), and 1029(c)(1)(A)(i) (Defendants 1 and 3–7 only)
Maximum Penalty: five years in prison; fine of $250,000 or twice the gross gain or loss
AGENCY
United States Secret Service
U.S. Postal Inspection Service
Federal Jury Convicts Big Island Pain Doctor Rudolph B. Puana of Conspiracy and Distribution of Oxycodone and FentanylRead the Press Release
Special Attorneys Michael Wheat (619) 546-8437, Joseph Orabona (619) 546-7951, Janaki Chopra (619) 546-8817, Colin McDonald (619) 546-9144, and Andrew Chiang (619) 546-8756
NEWS RELEASE SUMMARY – April 20, 2022
HONOLULU, Hawaii – A federal jury has found former Big Island pain doctor Rudolph B. Puana guilty of all 38 counts of an indictment charging him with conspiracy to distribute oxycodone and fentanyl and distribution of oxycodone and fentanyl outside the course of professional practice and without a legitimate medical purpose. Immediately following the jury’s verdict, Chief District Judge J. Michael Seabright ordered Puana to be remanded into custody.
Following a three-week trial, the jury deliberated for less than one day and convicted Puana of distributing substantial quantities of oxycodone, a Schedule II controlled substance, to his close friends to sell to pay for tuition at one of the most expensive private schools in the State of Hawaii and to purchase cocaine. The jury also found that Puana provided another friend with oxycodone and fentanyl to pay for cocaine they used to party together on Oahu. Prior to the jury trial, Puana pleaded guilty to being an addict in possession of approximately seven firearms. At the guilty plea hearing on March 28, 2022, Puana admitted that between 2014 and 2018 he was addicted to hydrocodone, a Schedule II controlled substance, while possessing the seven firearms, which included handguns, rifles, and a shotgun.
During the trial, the United States proved that Puana used cocaine with his friends and introduced his best friend to Puana’s “trinity”—cocaine, opioids, and alcohol—which combined to prolong and even out the “high.” Puana also popped hydrocodone pills—which he referred to as his “skittles”—in front of one of his friends. Puana said he obtained his “skittles” from the “doctor’s candy store.” Puana also left his script pad with his best friend and falsified medical records to legitimize a medical purpose for the substantial amount of oxycodone he provided to his friends. While addicted and abusing drugs, Puana distributed more than 7,810 oxycodone 30mg pills to his friends so that they could sell them to pay for tuition and cocaine. The street value of the oxycodone he supplied to his friends exceeded $117,000.
To conceal his crimes, Puana fabricated handwritten medical records for his closest friends, which included false drug tests. During their testimony, Puana’s friends admitted that Puana was not their pain doctor and that they had never gone to his clinic (previously the Puana Pain Clinic) for any medical visits, even though Puana falsely documented that they were examined there. In addition to falsifying the clinic’s files, Puana also kept a secret notebook hidden in the clinic’s drug closet. The notebook was handwritten by Puana to cover up his multi-year addiction to hydrocodone.
“The unlawful diversion of prescription drugs is one of the most serious problems plaguing our communities, and it is fueling the opioid epidemic that is ravaging families across the country,” said U.S. Attorney Randy S. Grossman. “The conviction of a pain doctor abusing his power and position to distribute highly addictive and dangerous oxycodone and fentanyl sends a strong message to any medical professional acting outside the regular course of practice and prescribing opioids without a legitimate medical need.”
“Today’s guilty verdict is a testament that no doctor should use his license to unlawfully distribute controlled substances and falsify medical records to conceal his crimes,” said FBI Special Agent in Charge Steven Merrill. “The FBI will continue to work with our partners to hold those who abuse their positions of trust accountable, and to protect the public.”
During trial, the prosecution relied on a multitude of documentary evidence, including Puana’s false clinic files, Puana’s handwritten notebook, pharmacy records, text messages, and other business records, as well as the testimony of Puana’s closest friends, federal agents, a forensic accountant, a medical expert, and police officers, among others, to prove Puana intentionally distributed oxycodone and fentanyl outside the usual course of professional practice and without a legitimate medical purpose.
Chief District Judge Seabright of the District of Hawaii, who presided over the trial, set sentencing for Rudolph B. Puana on September 12, 2022, at 1:30 p.m.
U.S. Attorney Grossman praised prosecutors Michael Wheat, Joseph Orabona, Colin McDonald, Janaki Chopra, and Andrew Chiang, and FBI agents in Honolulu for their excellent work on this case.
DEFENDANTS Case Number: CR 19-00015 JMS-WRP
Rudolph B. Puana Age: 50 Waimea, Hawaii
SUMMARY OF CONVICTIONS
Count 1 – Conspiracy to Distribute or Dispense Oxycodone and Fentanyl – Title 21, U.S.C., Sections 841(a)(1) and 846
Maximum Penalty: Twenty years in prison, $250,000 fine.
Counts 3-38 – Distributing or Dispensing Oxycodone – Title 21, U.S.C., Section 841(a)(1)
Maximum Penalty: Twenty years in prison per count, $250,000 fine per count.
Count 39 – Distributing or Dispensing Fentanyl – Title 21 U.S.C., Section 841(a)(1)
Maximum Penalty: Twenty years in prison, $250,000 fine
Count 54 – Unlawful Possession of Firearm While Addicted to Controlled Substance – Title 18, U.S.C. Section 922(g)(3)
Maximum Penalty: Ten years in prison, $250,000 fine
AGENCY
Federal Bureau of Investigation
Honolulu Division
San Diego Attorney Admits to Conspiring to Commit $500,000 of Tax Fraud with Former Chabad of Poway Rabbi GoldsteinRead the Press Release
Assistant U. S. Attorneys Valerie Chu (619) 546-6750 and Michelle L. Wasserman (619) 546-8431
NEWS RELEASE SUMMARY – April 13, 2022
SAN DIEGO – Elliot Adler, an attorney and founding partner of a boutique San Diego law firm, pleaded guilty in federal court today to conspiring with former Chabad of Poway Rabbi Yisroel Goldstein to commit tax fraud.
According to his plea agreement, Adler admitted that beginning at least as early as 2010 and continuing through October 2018, he participated in a so-called “90/10” tax scheme with Rabbi Goldstein. Specifically, Adler gave money to Rabbi Goldstein that purported to be a donation to Chabad of Poway. Goldstein then secretly funneled ninety percent of the funds back to Adler, keeping ten percent of the funds as his fee. None of the donated funds was actually given to the Chabad as a charitable donation.
Adler then falsely claimed that the fraudulent donations were tax-deductible on his tax returns, allowing him to reduce his personal income tax liability by approximately $500,000 (cumulatively) for tax years 2011 through 2017.
To accomplish the scheme, Adler and Goldstein communicated using coded language. Goldstein would refer to cash as “challah,” the source of the cash as “the baker,” and would invite co-conspirators to “wrap tefillin” when he proposed meeting to receive checks or deliver cash. For example, on Thursday, January 7, 2016, Goldstein texted Adler, “Good morning I got the challah[.] What time?” That same day, Adler replied via text message, “Monday morning 8am at shul or today before 12pm if you can come to my office.” Goldstein then replied, “Monday @8 is fine.” On Monday, January 11, 2016, Goldstein deposited a check from Adler for $30,000 payable to Chabad of Poway.
On or about December 29, 2017, Goldstein deposited two sequentially numbered checks from Adler, one for $180,000 and the other for $980,000. On Friday, January 5, 2018, Goldstein sent Adler a coded text message proposing that they “get together and wrap teffilin.” A few days later, on January 10, 2018, Goldstein wired approximately $1million to a wholesale and retail jeweler to purchase 246 Suisse Fortuna 1 oz. rectangular gold ingots, 246 Canadian Maple Leaf 1 oz. gold coins, and 246 American Eagle 1 oz. gold coins. On January 17, 2018, Goldstein sent another coded message to Adler asking him, “[w]hen can you come [i]n for a teffilin wrap? I’m ready for you.” Goldstein delivered the gold to Adler the next day. Adler nonetheless claimed on his 2017 tax returns that he had donated over $1 million to charity, fraudulently reducing his 2017 tax liability by approximately $447,000.
Adler and Goldstein took additional steps to conceal their scheme from authorities. On or about October 18, 2018, Goldstein told Adler that he was under investigation by the IRS and that he had been the subject of an undercover operation relating to tax evasion. Goldstein asked for Adler’s help to prove, falsely, that Goldstein, and not Adler, was in possession of the gold coins purchased with Adler’s purported donation. In the early hours of October 19, 2018, Adler arrived at Goldstein’s residence and returned the gold coins.
In July 2020, Rabbi Goldstein pleaded guilty to fraud charges, admitting that he participated in a complex, years-long, multi-million-dollar tax-evasion scheme and other financial deceptions involving theft of public money. Rabbi Goldstein’s plea agreement outlined the fraud scheme with Adler.
Adler is the eleventh individual to plead guilty to crimes discovered in this investigation. Two additional individuals agreed to deferred prosecution agreements as a result of the investigation.
“Elliot Adler conspired to commit a $500,000 tax fraud through phony religious donations,” said U.S. Attorney Randy S. Grossman. “Tax fraud is a serious crime that directly impacts our communities, and the U.S. Attorney’s Office is committed to working with the IRS, FBI and our other law enforcement partners to bring those responsible to justice.” Grossman thanked the prosecution team and agents for their hard work on this case.
“This defendant was part of an elaborate, years-long financial scheme to fraudulently claim charitable contributions in an effort to avoid paying taxes,” said FBI Special Agent in Charge Stacey Moy. “The FBI and our federal partners will continue to vigorously pursue those who abuse tax laws for their own financial gain - which also diminishes the public’s trust in charitable giving and hurts the organizations who rely on such donations.”
“For years, Mr. Adler shirked his duty to pay his fair share and then he doubled-down in a failed attempt to cover up his million-dollar tax fraud with Rabbi Goldstein,” said Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation’s Los Angeles Field Office. “Tax revenue funds our critical infrastructure, our national defense and pays for social programs like health care, education and social security. A one percent increase or decrease in tax compliance equates to approximately $35 billion in tax revenue used to serve the American public. IRS Criminal Investigation is committed to rooting out tax schemes and working with our law enforcement partners to bring financial fraudsters to justice.”
Adler is next scheduled to appear at a sentencing hearing on July 11, 2022, before Judge Cynthia Ann Bashant.
SUMMARY OF CHARGES Case Number 22cr0821
Elliott Adler Age: 45 San Diego, CA
Conspiracy to Commit Tax Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
PREVIOUSLY CHARGED DEFENDANTS AND SUMMARY OF CHARGES
Yisroel Goldstein, Case Number 20CR1916-BAS Age: 58 Poway
Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Alexander Avergoon, Case Number 19CR2955-BAS Age: 44 San Diego
Wire Fraud, in violation of Title 18, USC 1343
Maximum Penalty: Twenty years in prison
Aggravated Identity Theft, in violation of Title 18, USC 1028A
Maximum Penalty: Two years minimum consecutive term in prison
Money Laundering, in violation of Title 18, USC 1956(a)(1)(B)(i)
Maximum Penalty: Twenty years in prison
Bruce Baker, Case Number 20CR1912-BAS Age: 74 La Jolla
Conspiracy to Defraud the United States and file false tax returns, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Bijan Moossazadeh, Case Number 20CR1893-BAS Age: 63 San Diego
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Yousef Shemirani, Case Number 20CR1895-BAS Age: 74 Poway
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Boris Shkoller, Case Number 20CR1913-BAS Age: 83 Del Mar
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Mendel Goldstein, Case Number 20CR2772-BAS Age: 63 Brooklyn, NY
Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Stuart Weinstock, Case Number 21CR0042-BAS Age: 64 Escondido, CA
Filing False Tax Return, in violation of Title 26, U.S.C. §7206(1)
Maximum Penalty: Three years in prison
Jason Ellis, Case Number 21CR2200-BAS Age: 42 Poway, CA
Filing False Tax Return, in violation of Title 26, U.S.C. §7206(1)
Maximum Penalty: Three years in prison
Yehuda Hadjadj, Case Number 22CR148-BAS Age: 47 La Jolla, CA
Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Rotem Cooper, Case Number 20CR3968-BAS Age: 54 San Diego
Deferred Prosecution Agreement
Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371
Igor Shtilkind, Case Number 20CR3955-BAS Age: 55 San Diego
Deferred Prosecution Agreement
Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Internal Revenue Service
Boat Captain Pleads Guilty in Maritime Alien Smuggling Incident Resulting in Three DeathsRead the Press Release
Assistant U. S. Attorneys C. Seth Askins (619) 546-6692 and Lyndzie M. Carter (619) 546-8780
NEWS RELEASE SUMMARY – April 6, 2022
SAN DIEGO – Antonio Hurtado pleaded guilty in federal court today to charges stemming from a May 2, 2021, maritime smuggling incident in which three people aboard the vessel he was piloting died.
In a hearing before U.S. Magistrate Judge William V. Gallo, Hurtado admitted that on the evening of May 1, 2021, and into the following morning, he piloted a vessel from Mexico into the United States. Aboard the vessel were 32 individuals who had agreed to pay between $15,000 and $18,000 each to be brought into the United States illegally, including three unaccompanied minors.
Hurtado admitted in his plea agreement that during the journey, he repeatedly used controlled substances, to the point that he lost consciousness on at least one occasion, and the vessel drove in circles for more than an hour until the other people on board were able to wake him. At approximately 6:00 a.m., the vessel suffered engine failure, and the defendant was unable to restart the engine. The weather conditions that morning were rainy with large ocean swells, and the vessel began to drift toward land until it ran aground approximately 50 yards from shore near the Point Loma tidepools.
As the boat was struck by waves and began to list on its side, the defendant jumped into the water and made his way to shore, abandoning the vessel and its 32 occupants. The vessel quickly broke apart from the pounding of the surf, sending the individuals on board – almost all of whom had been hiding below deck and in the cabin at the defendant’s direction – into the cold and rough water. Personnel with the National Park Service, along with many civilians who were in the area, immediately began trying to help, and various agencies immediately responded to conduct a massive rescue operation. Unfortunately, three of the individuals – identified as Mexican citizens Maricela Hernandez-Sanchez, Victor Perez-Degollado, and Maria Eugenia Chavez-Segovia – died as a result of this incident.
After he was identified as the pilot of the vessel, Hurtado was taken to a local hospital for treatment and then transported to the Imperial Beach Border Patrol Station for processing. Hurtado admitted that while there, he assaulted a Border Patrol agent by striking the agent in the head with his knee while the agent was attempting to apply an ankle restraint.
The trial was scheduled to begin on May 3, 2021, one year and one day from the date of the incident. Instead, the defendant pleaded guilty to three counts of Attempted Bringing in Illegal Aliens Resulting in Death (each of which carries a maximum sentence of life in prison); three counts of Attempted Bringing in Illegal Aliens for Financial Gain (which carry a five-year mandatory minimum sentence); and one count of Assault on a Federal Officer.
“This was a horrific tragedy that never should have happened,” said U.S. Attorney Randy Grossman. “Because of the incomprehensible and stunning recklessness of the defendant on that terrible day, three people died and many others had to be rescued from rough seas. The defendant’s boat was packed with way too many people, and he then repeatedly used illicit drugs to the point of losing consciousness. When the boat capsized and passengers were desperately trying to survive, the defendant swam to safety, leaving them all behind. It was a shocking and callous series of events. If not for the heroism of stunned witnesses who swung into action, and that of first responders, others would have died. I have said it many times, and I will say it again: Never trust a smuggler. They care only about money. They care nothing for your safety. It’s not worth risking your life.” Grossman thanked the prosecution team and all the private citizens and members of local and federal agencies who participated in life-saving efforts on that terrible day, and also those who investigated the case to achieve justice.
“Callous disregard for migrant safety is a common trait among smugglers,” said Brandon Tucker, Director of Air and Marine Operations in San Diego. “All too often, these dangerous decisions have fatal consequences. I’ve made it my mission to go after the smugglers that put migrant lives at risk.”
“That unscrupulous smugglers put lives in danger to support their criminal activity is reprehensible,” said Chad Plantz, special agent in charge for HSI San Diego. “These deaths could have been prevented were it not for this individual concerned more for his own greed rather than the safety of others. HSI remains committed to working with our law enforcement partners, and utilizing our unique investigative authorities, to bring to justice those responsible for horrible tragedies like this.”
Hurtado is scheduled to be sentenced on July 1, 2022, at 9 a.m. before U.S. District Judge Janis L. Sammartino.
DEFENDANT Case Number 21-cr-01615
Antonio Hurtado Age: 40 San Diego, CA
SUMMARY OF CHARGES
Attempted Bringing in Illegal Aliens Resulting in Death and Aiding and Abetting
Title 8, U.S.C., Section 1324(a)(1)(A)(i), (v)(II), and (a)(1)(B)(iv)
Maximum penalty: Life in prison and $250,000 fine
Attempted Bringing in Illegal Aliens for Financial Gain and Aiding and Abetting
Title 8, U.S.C., Section 1324(a)(2)(B)(ii) and Title 18, U.S.C., Section 2
Maximum penalty: Fifteen years in prison and $250,000 fine
Assault on a Federal Officer
Title 8, U.S.C., Section 111(a)(1) and (b)
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCIES
Homeland Security Investigations
United States Border Patrol
Air and Marine Operations (CBP)
National Park Service
United States Coast Guard
San Diego Harbor Police Department
San Diego Fire-Rescue Department
San Diego Lifeguard Services
Former Marine Sentenced to More than 28 Years for Sexually Assaulting a 3-Year-OldRead the Press Release
Assistant U. S. Attorneys Amanda Griffith (619) 546-8970 and Katherine McGrath (610) 546- 9054
NEWS RELEASE SUMMARY – April 4, 2022
SAN DIEGO – Michael Hamby Jr., a former Marine, was sentenced in federal court today to 340 months in prison and 20 years of supervised release for sexually molesting a 3-year-old child. The record reflects Hamby also advertised the child as available to others and expressed an intent to engage in sexual games with two other children, ages 4 and 8.
Hamby, who pleaded guilty in May 2021, will be placed in a facility with a Sex Offender Management Program. He must also register as a sex offender.
“The lengthy sentence issued by the court reflects the horrific and depraved nature of Hamby’s crimes,” said U.S. Attorney Randy Grossman. “Following an NCIS investigation that spanned two countries, this prosecution ensures Hamby will face the consequences of his actions and the community will be protected from future harm.” Grossman thanked the prosecution team and federal agents who diligently pursued this egregious case.
“The world is a safer place for children now that Hamby has been sentenced to prison for his heinous crimes,” said Special Agent in Charge Michael Pierce of the NCIS Marine West Field Office. “As the federal law enforcement agency for the Department of the Navy, NCIS remains fully committed to protecting children from harm in communities where our DON personnel and their families live and work.”
According to the government’s sentencing memorandum, by all outward appearances, Hamby was a devoted husband and stepfather who served his country during two tours as a Marine, having reenlisted after completing his first tour in 2013 with an honorable discharge. His guilty plea, however, reflects a much darker picture. He admitted that from October 15, 2016 through October 22, 2016, while Hamby was residing on Camp Pendleton, he engaged in email communications with his co-defendant, Elijah Alexander Vazquez, who is scheduled to be sentenced tomorrow at 10:30am, also before U.S. District Judge John Houston. In the emails, Hamby and Vazquez discussed their mutual sexual interest in children and arranged to meet in person to engage in sexual activity with a 3-year old child. The defendant expressed his ability to persuade, coerce and induce the 3-year old child to engage in sexual activity. During their email exchanges, Hamby and Vazquez made plans to meet in person on or about October 22, 2016. They ultimately did meet as planned and engaged in various sexual acts with the child, including vaginal and anal penetration.
DEFENDANT Case Number 19CR1904-JAH
Michael Hamby, Jr. Age: 30
SUMMARY OF CHARGES
Enticement of a Minor -- Title 18, U.S.C., Section 2422(b)
Maximum penalty: A mandatory minimum 10 years in prison and a maximum of life in prison; a maximum $250,000 fine; and mandatory special assessments of $100 and $5,000.
AGENCY
Naval Criminal Investigative Service
Convicted Sex Offender Sentenced to More Than 13 Years for Attempting to Entice a Minor to Engage in Sexual RelationsRead the Press Release
Assistant U. S. Attorneys Amanda Griffith (619) 546-8970 and Jennifer McCollough (619) 546-8773
NEWS RELEASE SUMMARY – April 4, 2022
SAN DIEGO – A California man was sentenced today to 162 months in prison followed by a lifetime of supervised release for attempting to meet an undercover agent he believed to be a minor to have sexual relations with her.
Eduardo Alcala, 43, was arrested on August 2, 2021 and pleaded guilty to the charges on November 4, 2021. According to information presented at the sentencing proceeding, Alcala sent a Facebook friend request to an undercover federal agent who told him that she was 13 years old. Alcala and the undercover agent continued communicating through text messages. Over the course of the text exchanges and several phone calls, Alcala appeared to groom her as the conversation escalated from talking about going to the beach, to “hooking it up,” to “working [her] out,” and eventually to having sex and masturbating over the phone before they planned to meet in person. Alcala made plans to meet at a park to engage in sexual conduct with the girl he believed to be 13 years old. During this time, Alcala was a convicted and registered sex offender already on parole for one of multiple convictions involving children under the age of 18. Notably, Alcala told the undercover agent that he was on parole and informed his parole officer he was going to meet his sick mother before going to the park, where he was arrested.
“This defendant was willing to victimize someone he believed to be a 13-year-old child. Fortunately, he instead connected with an undercover agent,” said U.S. Attorney Randy S. Grossman. “This successful prosecution demonstrates our unwavering commitment to protecting children. But the home is often our first line of defense. We urge all parents to be vigilant and aware of their children’s online activity.” Grossman commended the team of prosecutors and agents who worked diligently on this matter.
“This previously convicted sex offender communicated with someone he thought was a child for his own gratification, without regard to the physical, psychological and emotional damage he would have caused,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “Thank you to those men and women who work tirelessly to make our community and virtual playgrounds a safe place for all children.”
Homeland Security Investigations (HSI) Agents in Calexico, California, conducted the investigation. The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
DEFENDANTS Case Number 21cr2643-TWR
Eduardo Alcala Age: 43
SUMMARY OF CHARGES
Attempted Enticement of a Minor – Title 18, U.S.C., Section 2242(b)
Maximum penalty: life in prison; $250,000 fine
AGENCY
Homeland Security Investigations
Former Operations Manager of Local Technology Support Firm Sentenced to 24 Months in Custody in Seven-Year Fraud SchemeRead the Press Release
SAN DIEGO – Matthew P. Hernandez, former manager of a small, San Diego-based technology support firm, was sentenced in federal court today to 24 months in custody for embezzling more than $350,000. Hernandez was also ordered to pay $356,664.46 in restitution to the firm.
Hernandez pleaded guilty on August 24, 2021, to four felony counts of wire fraud. According to the plea agreement and the government’s sentencing memorandum, Hernandez was responsible for managing payroll, accounts payable, and disbursing bonuses to employees at the firm. Hernandez had unfettered access to the firm’s books and records and authority to sign checks on the firm’s behalf. In his managerial role, Hernandez stole from the firm hundreds of times over the course of seven years, from 2010 to January 2017.
Hernandez stole from the firm in four different ways. First, Hernandez issued checks and made online payments from the firm’s business checking account directly to his USAA account to pay off personal credit card debt. Second, Hernandez used the corporate credit card to make unauthorized, non-business-related purchases. For example, Hernandez used the corporate credit card to buy a $3,500 hot tub, a home gym, a knife set, a TAG Heuer racing watch, roundtrip flights between Los Angeles and the Dominican Republic, and concert tickets to Coachella. Third, Hernandez issued multiple paychecks to himself for a single pay period. And fourth, Hernandez issued checks from the firm’s business checking account directly into his personal bank account.
To conceal his fraudulent conduct, Hernandez falsified the firm’s books to make the fraudulent payments look legitimate. To do this, Hernandez changed the payee entries on the firm’s books from his personal accounts to companies with which the firm did business. When confronted about discrepancies on the firm’s books or questions about the USAA account, Hernandez lied to make it appear that he would balance the books and reimburse the firm for any unauthorized funds paid to him, and that the USAA account belonged to a company with which the firm did business.
The fraudulent conduct was first discovered in January 2017 when Hernandez overdrew $10,000 from the firm’s business checking account. Upon inquiry, it was confirmed that the USAA account did not belong to a company with which the firm did business but rather it belonged to Hernandez. The firm extensively reviewed its books and records, identified Hernandez’s fraudulent purchases and transactions, and provided that information to federal law enforcement. The firm’s efforts to identify Hernandez’s fraudulent conduct took years to complete and was instrumental in moving the investigation and prosecution forward.
“This defendant stole resources that he was hired to protect,” said U.S. Attorney Randy Grossman. “These thefts are devastating for small businesses. This is a significant sentence that hopefully alerts other would-be thieves that stealing from your employer carries significant consequences.” Grossman thanked the prosecution team, the FBI and U.S. Postal Service investigators for their work on this case.
“For years, Mr. Hernandez engaged in a scheme to defraud his employer - treating their business accounts as his own by writing checks and wiring money to himself, misusing his work credit card, and issuing duplicate paychecks,” said FBI Special Agent in Charge Stacey Moy. “The FBI is proud to work with our partners at the U.S. Postal Service to identify and hold accountable those who abuse their work placement and access for personal gain. I hope today’s sentence provides some closure for the victims.”
“The U.S. Postal Inspection Service plays a vital role in these types of fraud schemes that involve the embezzlement of funds. Every day, U.S. Postal Inspectors protect our postal customers, businesses, and the public from such fraud scams that involve the U.S. mail,” said Carroll N. Harris III, Postal Inspector in Charge of the Los Angeles Division.
DEFENDANTS Case Number 20-cr-3665-JLS
Matthew P. Hernandez Age: 46 Riverside, California
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison and a fine twice the $356,644.46 pecuniary loss resulting from the offense
AGENCIES
Federal Bureau of Investigation
United States Postal Service
Chula Vista Woman Admits Faking Cancer While Attempting to Avoid Prison for Fraud ConvictionRead the Press Release
SAN DIEGO – Ashleigh Lynn Chavez pleaded guilty in federal court today to Obstruction of Justice, admitting that she repeatedly forged doctor’s notes falsely indicating she had been diagnosed with cancer, and that she caused these notes to be submitted to the court through her attorneys.
According to publicly available court documents, Chavez, 37, pleaded guilty to a conspiracy charge in November 2019, admitting that she embezzled more than $160,000 from a former employer. She was permitted to remain out of custody pending sentencing. She faced a likely prison term. On the eve of her sentencing, Chavez created a doctor’s note that falsely stated a biopsy had revealed “cancerous cells” in her uterus and forged the signature of her doctor on this letter. Chavez then provided the note to her attorney who, believing it to be genuine, submitted it to the court and to the assigned prosecutor in a bid for leniency.
On March 31, 2021, Chavez was sentenced to serve 12 months and 1 day in federal prison. As a direct result of the forged doctor’s note she had caused her attorney to submit, she was permitted to remain out of custody for an additional three months so that she could receive medical treatment.
As detailed in her plea agreement, after her sentencing hearing Chavez hired a new attorney whom she provided with additional forged letters from two different San Diego-area physicians. The new attorney, also believing the letters to be genuine, submitted them to the assigned prosecutor and to the court.
One forged letter, purporting to be from an oncologist, said: “Ashleigh has limitations due to uterine cancer and future need for radiation.” Other letters indicated that she was undergoing a surgical procedure, that she had been admitted to the hospital, and that her “condition has progressed… to Stage II; the cancer has spread to the cervix.” One letter warned that “she cannot be exposed to COVID-19” because of her fragile state. In August 2021, Chavez was purportedly scheduled to begin chemotherapy. Her attorney contacted the assigned prosecutor and indicated that she was too ill to work, and that as a result she needed to be relieved of monthly restitution obligations to the victim in her previous case.
By August 2021, the notes forged by Chavez were overtly recommending that the court reconsider her prison sentence and instead permit her to serve time on home confinement. In one forged note attributed to a San Diego-area oncologist, Chavez wrote that “(a) year in prison could be a death sentence for my patient… I highly recommend the chance to allow home confinement or anything else that you deem appropriate rather than a year in prison.” Two weeks later, she forged a note from the same oncologist stating that “Ashleigh’s cancer, it has in fact metastasized affecting the lymph nodes… I recommend a different approach to her sentencing.”
In fact, Chavez was never diagnosed with or treated for cancer by either doctor. When contacted by government representatives, both doctors denied writing any of the letters attributed to them. While Chavez had been a patient of one, the second doctor had never heard of her and had no idea how or why his identity had been stolen and his signature repeatedly forged by Chavez.
“This defendant, already convicted of one fraud, worked for months to commit additional frauds on the federal court,” said U.S. Attorney Grossman. “While her dishonesty delayed payment of her debt to society, it will cost her still more time in prison.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.
“The defendant went to great lengths to avoid reporting to prison for her prior fraud conviction by faking doctor’s notes claiming she had cancer – an insult to cancer patients everywhere,” said FBI Special Agent in Charge Stacey Moy. “May today’s guilty plea finally put an end to this odyssey to obstruct justice which, in the end, will only add additional time to her sentence.”
Chavez faces up to 10 additional years in federal prison and is scheduled to be sentenced on June 27, 2022, by U.S. District Judge Anthony J. Battaglia.
DEFENDANT Case No. 22-CR-0318-AJB
ASHLEIGH LYNN CHAVEZ Age 37 Chula Vista, CA
aka “Ashleigh Lynn Coulson”
aka “Ashleigh Chavez Coulson”
aka “Carlos Garcia”
SUMMARY OF CHARGES
Obstruction of Justice – Title 18, U.S.C., Section 1503
Maximum penalty: Ten years in custody and a $250,000 fine.
AGENCIES
Federal Bureau of Investigation
Chula Vista Man Sentenced for Distributing Fentanyl-Laced Pills that Caused Overdose Death of 20-Year-OldRead the Press Release
Assistant U. S. Attorney Jennifer E. McCollough (619) 546-8773
NEWS RELEASE SUMMARY – March 29, 2022
SAN DIEGO –Jonathan Mefford was sentenced in federal court today to 190 months in prison for selling fentanyl-laced pills that caused the death of a 20-year-old Chula Vista man, identified in court records as J.P., in October of 2018, and for distributing multi-pound level quantities of methamphetamine in Kansas.
Mefford previously admitted that he sold the pills to J.P. on October 29, 2018, and that he knew these pills contained fentanyl. Mefford additionally admitted that J.P.’s overdose and death was caused by the fentanyl-laced pills that J.P. purchased from Mefford. Finally, Mefford admitted that he transported multi-pound level quantities of methamphetamine from San Diego to Kansas. Once in Kansas, Mefford distributed the methamphetamine to various individuals.
Detectives from the Chula Vista Narcotics Enforcement Team in concert with Special Agents from the Drug Enforcement Administration and Homeland Security led the investigation into J.P.’s death and quickly identified Mefford as the source of the fatal pills. According to the sentencing memorandum, Mefford offered counterfeit prescription pills for sale through social media platforms and sold up to 500 pills. The sale of those pills not only led to the death of J.P., but another overdose where the victim fortunately survived. Notably, Mefford continued selling counterfeit pills for months following both overdoses.
“The epidemic of counterfeit fentanyl-laced pills continues to claim lives in our community,” said U.S. Attorney Randy Grossman. “To be clear: If you are a drug dealer selling pills, and those pills result in death, you will be held accountable for that death.” Grossman praised the prosecution team as well as the Drug Enforcement Administration’s Narcotics Task Force Team 10 and officials from the Chula Vista Narcotics Enforcement Team for their excellent work on this case.
“Today’s sentencing of Jonathan Mefford serves as a warning to anyone selling fentanyl-laced pills that there will be severe consequences if the pills you sell cause a death,” said DEA Special Agent in Charge Shelly S. Howe. “One pill can kill. One pill can devastate a family. And one pill that causes a death can send you to prison for 15 years. DEA has resources available about the One Pill Can Kill campaign at www.dea.gov/onepill.”
“This 15-year sentence highlights the success of HSI’s collaborative efforts with our federal and local law enforcement partners in combating the opioid epidemic here and across the country,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “HSI is committed to holding those accountable who recklessly push this poison into our communities.”
“This case serves as a great example of why the Chula Vista Police Department works with our partners at the Drug Enforcement Administration and the U.S. Attorney’s Office, by bringing law enforcement agencies together, to hold drug dealers accountable and help keep dangerous drugs like fentanyl out of our community,” said Chula Vista Police Department Chief Roxana Kennedy. “This investigation sends a strong message to drug dealers operating in Chula Vista and provides some measure of justice for the victim and his family.”
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office and the Drug Enforcement Administration to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created Narcotics Task Force Team 10 as a response to the increase in overdose deaths in San Diego County. Agents from Team 10 contributed to the investigation into J.P.’s death
DEFENDANTS Case Number 20cr253-CAB
Michael Mefford Age: 24 Chula Vista, CA
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 21, U.S.C., Section 841(a)
Conspiracy to Distribute Methamphetamine – Title 21, U.S.C., Sections 841(a) and 846
Maximum penalty: Life in prison; $10 million fine
AGENCY
Homeland Security Investigations
Drug Enforcement Administration
Chula Vista Police Department
Guatemalan National Indicted on International Cocaine TraffickingRead the Press Release
Assistant U.S. Attorney Kevin Mokhtari (619) 546-8402
NEWS RELEASE SUMMARY – March 18, 2022
SAN DIEGO – A federal grand jury indictment was unsealed in San Diego against Guatemalan national Axel Bladimir Montejo Saenz, aka “Mosh,” aka “Kraken.”
The indictment returned on November 1, 2018, charges Montejo Saenz with Conspiracy to Distribute Cocaine Intended for Unlawful Importation and Conspiracy to Distribute Cocaine on Board a Vessel. Montejo Saenz remains a fugitive.
Read the Indictment
The indictment alleges that the conspiracy continued up to and including November 2018 and involved the distribution of cocaine in the countries of Colombia, Ecuador, Guatemala, Costa Rica, El Salvador, Mexico and elsewhere.
“Today marks another important step in disrupting the corridor of illicit drug trafficking from Central America into the United States,” said U.S. Attorney Randy S. Grossman. “This complex, multi-agency investigation demonstrates the breadth of the Department’s mission to stop the flow of narcotics well before they reach our shores.” U.S. Attorney Grossman thanked the prosecution team, Homeland Security Investigations and the Drug Enforcement Administration for their excellent work on this case.
“This high-level indictment highlights the success of HSI’s collaborative efforts with the government of Guatemala and all of our foreign and domestic law enforcement partners. This partnership has resulted in significant seizures of narcotics, firearms and U.S. Currency from international cartels,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “HSI is committed to bringing international drug trafficking cartel members to justice and to dismantling these criminal organizations.”
“DEA and our law enforcement partners are determined to bring members of transnational criminal organizations that inundate our country with cocaine to justice in the United States,” said DEA Special Agent in Charge Shelly S. Howe. “We will continue to work with our foreign partners to stop the importation of illicit drugs.”
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
DEFENDANT
Case Number 18cr4701-DMS
Axel Bladimir Montejo Saenz Age: 35 Huehuetenango, Guatemala
aka “Mosh,” aka “Kraken,”
aka “Gladiator,” aka “Baraja,”
aka “Solin,” aka “Ron Zacapa,”
aka “Captain Morgan,” aka “Corralejo”
SUMMARY OF CHARGES
International Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Section 959, 960, 963
Criminal Forfeiture – Title 21, U.S.C., Section 853Maximum Penalty: Life in prison and $10 million fine
Conspiracy to Distribute Cocaine on Board a Vessel Subject to the Jurisdiction of the United States –
Title 46, U.S.C., Sections 70503, 70506(b)
Criminal Forfeiture – Title 46, U.S.C., Section 70507(a)
Maximum Penalty: Life in prison and $10 million fineAGENCIES
Homeland Security Investigations (HSI)
Drug Enforcement Administration (DEA)
Customs and Border Protection (CBP)
U.S. Coast Guard
HSI Attaché Guatemala City, Guatemala
HSI Attaché Mexico City Mexico
Department of Justice’s Office of International Affairs
Department of Justice, Office of Enforcement Operations
Department of Justice, Organized Crime and Drug Enforcement Task Force (OCDETF)
Joint Task Force-Investigations (JTF-I)
Joint Interagency Task Force-South (JIATF-S)
U.S. Department of Treasury, Office of Foreign Asset Control (OFAC)
Alleged Guatemalan Drug Kingpin Indicted in San Diego; $10 Million Dollar Reward Offered by U.S. Department of StateRead the Press Release
Assistant U.S. Attorney Kevin Mokhtari (619) 546-8402
NEWS RELEASE SUMMARY – March 18, 2022
SAN DIEGO – A federal grand jury indictment was unsealed in San Diego against alleged Guatemalan drug kingpin Eugenio Dario Molina-Lopez, aka “Don Dario,” who is accused of being a leader of a transnational criminal organization known as Los Huistas.
Los Huistas are primarily based in the Huehuetenango region of Northwest Guatemala that borders Mexico. This marks the latest indictment unsealed as part of Operation Guerrilla Unit, a multi-year investigation led by Homeland Security Investigations and the United States Attorney’s Office in San Diego that targets high-level Guatemalan drug traffickers and their suppliers.
The indictment returned on January 29, 2019, charges Molina-Lopez with Conspiracy to Distribute Cocaine Intended for Unlawful Importation and Conspiracy to Distribute Cocaine on Board a Vessel. Molina-Lopez remains a fugitive.
Read the Indictment Wanted Poster - English Wanted Poster - Espanol
The U.S. Department of State also announced today that it is offering a reward of up to $10 million for information leading to the arrest and/or conviction of Molina-Lopez. This award is offered under the U.S. Department of State’s Narcotics Rewards Program (NRP). More than 75 transnational criminals and major narcotics traffickers have been brought to justice under the NRP and the Transnational Organized Crime Rewards Program (TOCRP) since 1986. The Department has paid more than $135 million in rewards to date.
The State Department’s Bureau of International Narcotics and Law Enforcement Affairs manages the NRP in close coordination with Homeland Security Investigations, the Federal Bureau of Investigation, the Drug Enforcement Administration, and other U.S. government agencies.
ALL IDENTITIES ARE KEPT STRICTLY CONFIDENTIAL. Government officials and employees are not eligible for rewards
Operation Guerrilla Unit targets high-level cocaine traffickers operating in northwest Guatemala and their suppliers. This investigation has offered one of the most comprehensive views to date of the inner workings of cocaine trafficking in Guatemala. High-level cocaine traffickers were targeted in a massive probe involving multiple countries, multiple law enforcement agencies around the United States, and a number of federal districts.
“This extraordinary case is one of this district’s most significant, comprehensive and large-scale drug trafficking prosecutions,” said U.S. Attorney Randy S. Grossman. “We are working tirelessly to dismantle cartels by taking down the leaders, one by one.” Grossman thanked the prosecution team, Homeland Security Investigations for spearheading this multi-year investigation, and the many law enforcement agencies that have worked so diligently on this case.
“HSI remains committed to combating the flow of dangerous drugs into the U.S. This includes disrupting and dismantling transnational criminal organizations and their supply networks beyond our borders. The indictment of Molina, the leader of Los Huistas, demonstrates HSI's efforts to target these criminal organizations at their highest levels,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “The reward proposed by the Department of State for Molina’s capture is a significant step forward in the investigation and reflects HSI's holistic approach to countering transnational criminal organizations by collaborating not only with law enforcement partners, but also with our foreign policy and regulatory agencies.”
“The fight against drug cartels in the Eastern Pacific Ocean and the Caribbean Sea requires unity of effort from operational detection, monitoring, and interdiction, to criminal prosecutions by international partners and U.S. Attorneys’ Offices,” said Rear Admiral Brian Penoyer, the Eleventh Coast Guard District commander. “These charges showcase the threat posed by dangerous cartels, gangs and criminal groups that make up extensive organized crime networks.”
This operation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
DEFENDANT
Case Number 19cr0327-DMS
Eugenio Dario Molina-Lopez Age: 57 Huehuetenango, Guatemala
aka “Don Dario,” aka “Molis”
SUMMARY OF CHARGES
International Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Section 959, 960, 963
Criminal Forfeiture – Title 21, U.S.C., Section 853Conspiracy to Distribute Cocaine on Board a Vessel – Title 46, U.S.C., Section 70503(b), 70506
Maximum Penalty: Life in prison and $10 million fine
AGENCIES
Homeland Security Investigations (HSI)
Customs and Border Protection (CBP)
Federal Bureau of Investigation (FBI)
U.S. Coast Guard
HSI Attaché Guatemala City, Guatemala
HSI Attaché Mexico City Mexico
Department of Justice’s Office of International Affairs
Department of Justice, Office of Enforcement Operations
Department of Justice, Organized Crime and Drug Enforcement Task Force (OCDETF)
Department of Justice's Narcotic and Dangerous Drug Section (NDDS)
Joint Interagency Task Force-South (JIATF-S)
U.S. Department of Treasury, Office of Foreign Assets Control (OFAC)
U.S. Department of State
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
CEO of Local Financial Firm Sentenced in Multi-Million Dollar Securities and Tax Fraud Scheme; Forfeits MillionsRead the Press Release
Assistant U.S. Attorney Carl F. Brooker, IV (619) 546-7994
NEWS RELEASE SUMMARY – March 17, 2022
SAN DIEGO – David John Nava of La Jolla was sentenced in federal court today to 12 months for his role in multiple felonies related to the operation of his financial firm, Surf Financial Group, LLC, including conspiring to defraud shareholders of publicly traded companies, transmitting millions of dollars through an unlicensed money transmitting business, and falsifying multiple years of federal tax returns. He was also ordered to pay $3,716,888.27 in restitution.
Nava pleaded guilty on October 7, 2020, to one count of conspiracy to commit securities fraud, one count of operating an unlicensed money transmitting business, and one count of tax fraud. Pursuant to his plea agreement, Nava agreed to forfeit more than $3.1 million for his crimes.
According to the plea agreement and sentencing papers, Nava managed Surf Financial Group, LLC despite federal securities regulators permanently banning and censuring him in 1994 from participating in the industry. Nava admitted that he and other co-conspirators, including a licensed attorney, converted the debt of various publicly traded companies under materially false and fraudulent pretenses into unrestricted stock and then sold the stock for profit. Nava further admitted that he and his co-conspirators carried out their fraudulent scheme by entering into agreements where Nava sold shares of various entities’ stock on public exchanges after fraudulently claiming an exemption from the U.S. Securities and Exchange Commission’s (SEC) registration requirements for selling securities in the public marketplace.
To conceal his involvement in the securities fraud scheme, Nava admitted using various nominees to ensure that, as Nava described it, he was a “ghost” in the transactions. Brokerage firms relied on the purported truth and accuracy of the attorney opinion letters in evaluating whether to clear the sale of shares of the restricted stocks on public markets. After the stocks were cleared for sale as a result of the false attorney opinion letters, Nava and his co-conspirators sold millions of shares of these stocks to the investing public.
Nava further admitted that, from approximately 2017 to 2018, he operated an unlicensed money transmitting business as a means to transmit financial proceeds from foreign locations, including Hong Kong and the Bahamas, as a way to disguise the source, origin and control of the proceeds.
As stated in his plea agreement, in 2017 Nava entered into a business partnership with at least one person who resided in Mexico and delivered dairy products for a living. To conceal Nava’s control over the money transmitting business, Nava directed the Mexican resident to open a bank account at a financial institution in San Diego, and to transmit millions of dollars in funds as directed by Nava. Nava failed to register his money transmitting business with the U.S. Treasury Department’s Financial Crimes Enforcement Network, or FinCEN, as required under federal law.
“This defendant stepped outside the boundaries of legal business practices and used his business acumen and connections for a criminal purpose,” said U.S. Attorney Randy Grossman. “He concocted a complex, international scheme to deceive shareholders, launder proceeds of the fraud through Mexico, and hide profits from the IRS. The sentence imposed by the court sends a message that serious crimes result in serious consequences.” Grossman thanked the prosecution team and HSI and IRS agents for their excellent work on this case.
“CEOs are not above the law,” said Chad Plantz, Special Agent in Charge of HSI, San Diego. “Today’s sentencing sends a message to white collar criminals that they will be held accountable. HSI San Diego and Costa Pacifica Money Laundering Task Force will continue to aggressively investigate and work to prosecute securities fraud and other financial crimes.”
“Today’s sentencing holds David Nava accountable for his crimes against the American tax system he cheated and the innocent Americans he victimized,” said IRS Criminal Investigation Special Agent in Charge Ryan L. Korner. “Schemes like this cannot and will not go unnoticed. IRS Criminal Investigation is committed to working with our partners to investigate fraudulent schemes and trace the proceeds. We will hold fraudsters accountable and they will face the consequences, including serving time in federal prison.”
DEFENDANTS Case Number: 20-cr-03085-DMS
David John Nava La Jolla, CA Age: 63
SUMMARY OF CHARGES
Conspiracy to Commit Securities Fraud – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison, restitution, and $250,000 fine
Operation of Unlicensed Money Transmitting Business – Title 18, U.S.C., Section 1960
Maximum penalty: Five years in prison, forfeiture, and $250,000 fine
Tax Fraud – Title 26 U.S.C. Section 7206(1)
Maximum Penalty: Three years in prison, and $100,000 fine
AGENCIES
Homeland Security Investigations - Costa Pacifico Money Laundering Task Force
IRS Criminal Investigation – Financial Investigations and Border Crimes Task Force
Brother of Former Chabad of Poway Rabbi Goldstein Sentenced for Tax Fraud SchemeRead the Press Release
Assistant U. S. Attorneys Michelle L. Wasserman (619) 546-8431 and Valerie Chu (619) 546-6750
NEWS RELEASE SUMMARY – March 11, 2022
SAN DIEGO – Mendel Goldstein, brother of former Chabad of Poway Rabbi Yisroel Goldstein, was sentenced in federal court today to 8 months custody and a $5,500 fine for his participation in a years-long scheme with his brother to evade taxes. He was also ordered to pay restitution totaling $164,475.82. While imposing the sentence, District Court Judge Cynthia Bashant stated, “It’s important to send a message . . . people need to know, this is what happens when you commit tax fraud.”
According to his plea agreement, Mendel Goldstein concealed the entirety of his income for at least six years by funneling the income from his successful videography business through Chabad of Poway bank accounts that were controlled by his brother, Rabbi Goldstein. In return, Rabbi Goldstein took a ten percent cut of Mendel Goldstein’s income.
Mendel Goldstein was able to access his funds by writing checks to himself from the Chabad of Poway bank account that concealed the true recipient of the money, instead addressing checks to fictitious people including “Mr. Green,” “Mr. Gold,” or “Mr. Fish,” or simply making the checks out to “CASH.” Between April 2012 and August 2018, Mendel Goldstein concealed over $700,000 in income from the IRS, evading over $150,000 in taxes.
Rabbi Goldstein alerted Mendel Goldstein to the investigation around December 2018 and encouraged Mendel Goldstein to conceal his tax evasion by filing delinquent tax returns.
In July 2020, Rabbi Goldstein pleaded guilty to fraud charges, admitting that he participated in a complex, years-long, multi-million-dollar tax-evasion scheme and other financial deceptions involving theft of public money. Rabbi Goldstein’s plea agreement outlined the fraud scheme with Mendel Goldstein.
“Our community should not tolerate tax fraud, and offenders will continue to be prosecuted,” said U.S. Attorney Randy Grossman. Grossman thanked the prosecution team and FBI and IRS agents for their excellent work on this case.
“For years, Mendel Goldstein worked with his brother, Yisroel - then the director of the Chabad of Poway - to orchestrate a financial scheme to hide more than $700,000 of his own income from being taxed,” said FBI Special Agent in Charge Suzanne Turner. “The FBI has no tolerance for those who abuse the tax-exempt status of religious organizations for their own financial gain. We are proud to work alongside our federal partners at IRS - Criminal Investigation to uncover various forms of financial fraud and I would like to thank them for their ongoing partnership in this case.”
“Instead of paying his fair share, Mr. Mendel Goldstein used his relationship and the exploitation of a religious organization’s special non-profit status to divert his income, conceal his earnings and evade paying his taxes,” said Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation. “Today’s sentencing and this investigation demonstrate our commitment to hold accountable those who shirk their tax obligations by corrupting our nation’s tax laws for their own personal gain.”
SUMMARY OF CHARGES Case Number 20CR-2772-BAS
Mendel Goldstein Age:64 Brooklyn NY
Conspiracy to Defraud the United States, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
PREVIOUSLY CHARGED DEFENDANTS AND SUMMARY OF CHARGES
Yisroel Goldstein, Case Number 20CR1916-BAS Age: 58 Poway
Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Alexander Avergoon, Case Number 19CR2955-BAS Age: 44 San Diego
Wire Fraud, in violation of Title 18, USC 1343
Maximum Penalty: Twenty years in prison
Aggravated Identity Theft, in violation of Title 18, USC 1028A
Maximum Penalty: Two years minimum consecutive term in prison
Money Laundering, in violation of Title 18, USC 1956(a)(1)(B)(i)
Maximum Penalty: Twenty years in prison
Bruce Baker, Case Number 20CR1912-BAS Age: 74 La Jolla
Conspiracy to Defraud the United States and file false tax returns, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Bijan Moossazadeh, Case Number 20CR1893-BAS Age: 63 San Diego
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Yousef Shemirani, Case Number 20CR1895-BAS Age: 74 Poway
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Boris Shkoller, Case Number 20CR1913-BAS Age: 83 Del Mar
Filing a False Tax Return, in violation of Title 26, USC 7206(1)
Maximum Penalty: Three years in prison
Stuart Weinstock, Case Number 21CR0042-BAS Age: 64 Escondido, CA
Filing False Tax Return, in violation of Title 26, U.S.C. §7206(1)
Maximum Penalty: Three years in prison
Jason Ellis, Case Number 21CR2200-BAS Age: 42 Poway, CA
Filing False Tax Return, in violation of Title 26, U.S.C. §7206(1)
Maximum Penalty: Three years in prison
Yehuda Hadjadj, Case Number 22CR148-BAS Age: 47 La Jolla, CA
Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison
Rotem Cooper, Case Number 20CR3968-BAS Age: 54 San Diego
Deferred Prosecution Agreement
Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371
Igor Shtilkind, Case Number 20CR3955-BAS Age: 55 San Diego
Deferred Prosecution Agreement
Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Internal Revenue Service
Two Defendants in ‘Grandparent Scam’ Network Plead Guilty to RICO ConspiracyRead the Press Release
Two members of a network that operated and facilitated a large-scale “grandparent scam,” pleaded guilty to racketeering conspiracy. Timothy Ingram, aka Bleezy, 29, of North Hollywood, California pleaded guilty on March 2, and Jack Owuor, 25, of Paramount, California pleaded guilty on March 9.
According to court documents, Ingram and Owuor were members and associates of a network of individuals who, through extortion and fraud, induced elderly Americans across the United States to pay thousands to tens of thousands of dollars each to purportedly help their grandchild or other close family relative. Members of the network contacted elderly Americans by telephone and impersonated a grandchild, other close relative or friend of the victim. They falsely convinced the victims that their relatives were in legal trouble and needed money to pay for bail, for medical expenses for car accident victims or to prevent additional charges from being filed. The defendants and their co-conspirators then received money from victims via various means, including in-person pickup, mail and wire transfer, and laundered the proceeds, including through cryptocurrency.
“The Department of Justice’s Consumer Protection Branch will pursue and prosecute individuals who systematically target elderly Americans by preying on their concern for loved ones,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “We are grateful to our partners at the U.S. Attorney’s Office for the Southern District of California and the FBI for their work to advance the department’s efforts against organized elder fraud, and to the San Diego County District Attorney’s Office.”
“These defendants exploited the sacred bond between grandparent and grandchild and left many victims financially and emotionally traumatized,” said U.S. Attorney Randy Grossman for the Southern District of California. “We will vigorously investigate and bring to justice those who prey on the elderly.”
“These guilty pleas are a prime example of the collaboration and coordination among our local, state and federal partners who make up San Diego’s Elder Justice Task Force, and the great work being done to protect our elderly population,” said Special Agent in Charge Suzanne Turner of the FBI’s San Diego Field Office. “The task force is committed to aggressively pursuing criminal organizations who prey on our senior citizens, and will utilize all available investigative means to bring them to justice. I would also like to thank the FBI’s Los Angeles Field Office for their continued support in this case.”
Ingram and Owuor pleaded guilty to conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act. Ingram is scheduled to be sentenced on May 27. Owuor is scheduled to be sentenced on June 3. They each face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Four co-defendants remain pending for trial. Two additional defendants have been charged but remain at large.
The case was investigated by the FBI’s San Diego Field Office, North County Resident Agency, with critical assistance from investigators of the San Diego County District Attorney’s Office.
Trial Attorneys Lauren M. Elfner and Wei Xiang with the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Oleksandra Johnson of the Southern District of California are prosecuting the case.
The department’s extensive and broad-based efforts to combat elder fraud seeks to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Two Defendants Plead Guilty in a Nationwide Racketeering Conspiracy Targeting the ElderlyRead the Press Release
Assistant U. S. Attorney Oleksandra “Sasha” Johnson (619) 546-9769
NEWS RELEASE SUMMARY – March 9, 2022
SAN DIEGO – Two defendants charged in a nationwide “grandparent scam” have pleaded guilty to conspiracy charges under the Racketeer Influenced and Corrupt Organizations (RICO) Act.
Jack Owuor, 25, of Paramount, California pleaded guilty in federal court today. Timothy Ingram, 29, of North Hollywood, California, pleaded guilty on March 2, 2022.
According to court documents, the defendants were members and associates of a criminal enterprise that engaged in extortion and fraud to swindle more than $2 million from 70-plus elderly victims across the nation. At least 10 elderly San Diego County residents lost more than $300,000 to the fraud.
From approximately November 1, 2019, until October 14, 2020, the members of the criminal enterprise targeted elderly Americans, contacting them by phone and feeding them phony stories that their grandchildren were in legal trouble and needed money to pay for bail, pay medical expenses for car accident victims, or prevent additional charges from being filed, according to court documents. Members and associates obtained money from victims through in-person cash pick-ups, by mail or commercial carriers, or via wire transfers. Conspirators laundered the proceeds by transferring the funds or converting from fiat currency to cryptocurrency.
Ingram admitted in his plea agreement that he organized the criminal activity of at least five other participants, including codefendants Anajah Gifford and Jack Owuor. Ingram admitted that he recruited mules to receive transfers of money from victims, and to pick up cash from victims in California and elsewhere. As part of the guilty plea, Ingram agreed to forfeit $124,700 in proceeds from the offense. Ingram will also be subject to an order of restitution to the victims of the offense in the amount of at least $1,932,507.93.
Owuor admitted in his plea agreement that he conducted cash pick-ups from victims under Ingram’s direction, and later recruited women to pick up cash. In their phone messages, Ingram and Owuor discussed using female mules for cash pick ups to make “it more smooth.” As part of his guilty plea, Owuor agreed to forfeit $4,300 in proceeds he personally received from the offense, and pay at least $434,600 to the victims in restitution.
This case was investigated by the San Diego Elder Justice Task Force, which is a collaboration between the U.S. Attorney’s Office, the FBI, the District Attorney’s Office and all San Diego County law enforcement agencies. The Elder Justice Task Force was established in February 2021 and is believed to be the first comprehensive law enforcement effort for this purpose anywhere in the country. The case was prosecuted by the U.S. Attorney’s Office and the Department of Justice’s Consumer Protection Branch.
“These defendants exploited the sacred bond between grandparent and grandchild and left many victims financially and emotionally traumatized,” said U.S. Attorney Randy Grossman. “We will vigorously investigate and bring to justice those who prey on the elderly.” Grossman thanked the prosecution team, the Department of Justice’s Consumer Protection Branch and members of the San Diego Elder Justice Task Force for their excellent work on this case.
“The Department of Justice’s Consumer Protection Branch will pursue and prosecute individuals who systematically target elderly Americans by preying on their concern for loved ones,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “We are grateful to our partners at the U.S. Attorney’s Office for the Southern District of California and the FBI for their work to advance the department’s efforts against organized elder fraud, and to the San Diego County District Attorney’s Office.”
“These guilty pleas are a prime example of the collaboration and coordination among our local, state, and federal partners who make up San Diego’s Elder Justice Task Force, and the great work being done to protect our elderly population,” said FBI Special Agent in Charge Suzanne Turner. “The task force is committed to aggressively pursuing criminal organizations who prey on our senior citizens, and will utilize all available investigative means to bring them to justice. I would also like to thank the FBI’s Los Angeles Field Office for their continued support in this case.”
As of today, four of the eight defendants charged in the case are pending trial. Two defendants are fugitives and remain at large.
DEFENDANTS Case Number 21cr2216-CAB
Tracy Adrine Knowles 30 Orlando, Florida
Fugitive
Adonis Alexis Butler Wong 30 Northbay Village, Florida
Fugitive
Timothy Ingram, AKA Bleezy 29 North Hollywood, California
In custody
Sentencing set for May 27, 2022
Anajah Gifford 23 North Hollywood, California
In custody
Lyda Harris 74 Laveen, Arizona
Released on bond
Joaquin Lopez 46 Hollywood, Florida
Released on bond
Jack Owuor 25 Paramount, California
Released on bond.
Sentencing set for June 3, 2022
Tracy Glinton 35 Orlando, Florida
Released on bond
SUMMARY OF CHARGES
Title 18, U.S.C., Sec. 1962(d) – Conspiracy to Conduct or Participate in an Enterprise Through a Pattern of Racketeering Activity
Maximum penalty: Twenty years in prison and a fine of not more than the greater of twice the amount of gain or loss associated with the offense or $250,000
AGENCIES
Department of Justice’s Consumer Protection Branch
San Diego Elder Justice Task Force, which includes:
San Diego FBI
San Diego County District Attorney’s Office
San Diego Police Department
San Diego Sheriff’s Department
Carlsbad Police Department
Oceanside Police Department
Escondido Police Department
Chula Vista Police Department
El Cajon Police Department
La Mesa Police Department
National City Police Department
Coronado Police Department
Customs and Border Protection Officer Convicted by Federal Jury of Using Unreasonable Force at Calexico Port of Entry and Obstructing JusticeRead the Press Release
Assistant U. S. Attorney Seth Askins (619) 546-6692 and Alicia Williams (619) 546-8917
NEWS RELEASE SUMMARY – March 9, 2022
SAN DIEGO – U.S. Customs and Border Protection Officer Marcos Valenzuela was convicted by a federal jury today of using unreasonable force on an individual who had applied for admission to the United States from Mexico.
The jury trial began Monday. The jury deliberated for an hour and a half before finding Valenzuela guilty of two charges, Deprivation of Rights under Color of Law and Falsification of Records in a Federal Investigation.
According to evidence presented at trial, which included surveillance video and witness testimony, Valenzuela was assigned to primary vehicle inspection in lane 5 at the Calexico West Port of Entry on August 16, 2019. There was an incident in the pre-primary area of his line between the victim, identified only as “J.L.” in court documents, and the driver of a motorcycle, after the motorcycle cut in front of J.L.’s vehicle while waiting in line.
Valenzuela responded to the pre-primary area where J.L. had gotten out of his vehicle. Valenzuela instructed J.L. to get back into his vehicle, and when J.L. did not immediately comply, Valenzuela told him to get back into his vehicle or Valenzuela would “throw him to the ground.” After J.L. complied, Valenzuela returned to the primary booth. Eventually, the motorcyclist applied for entry into the United States at the primary booth, and Valenzuela told him that he was “going to f**k [J.L.] up right now.”
Immediately thereafter, J.L. drove up to the primary inspection booth with his identification card extended in his hand from the window of the vehicle in an effort to expedite the admissibility inspection. Rather than conducting that inspection, Valenzuela immediately began to rehash the incident in pre-primary, telling J.L., “All right, bro. Check it out. I already called it upstairs…” J.L. attempted to explain that the motorcyclist had cut line in front of him, but Valenzuela told him to be quiet, that Valenzuela was talking, and that J.L. would be removed from the vehicle if he said another word.
When J.L. asked to speak with Valenzuela’s supervisor, Valenzuela told J.L. to turn off and exit the vehicle. While J.L. was turning off the vehicle and removing his seat belt, Valenzuela reached through the driver’s window, unlocked and opened the door, and grabbed J.L.’s left wrist. He pulled J.L. out of the vehicle, and then in one motion that took about five seconds, he shoved J.L. into the wedge of the door, wrapped his right arm around J.L.’s neck and upper chest, threw J.L. to the ground with a backwards motion, and landed on top of J.L. who was now face down on the ground and sustained minor injuries to his forehead and forearm.
Once J.L. had been placed in handcuffs, Valenzuela escorted him to the vehicle secondary office. While in the security office, Valenzuela made multiple misrepresentations to other Customs and Border Protection officers about his interaction with J.L. in an effort to portray J.L. as the aggressor and justify his use of force against J.L. Valenzuela also wrote an incident report later that day that included numerous false statements alleging aggressive verbal and physical conduct by J.L. and claiming that J.L. resisted arrest.
At trial, Valenzuela testified in his own defense, maintaining that J.L. resisted arrest by “pushing off” against him once he had been removed from the vehicle and attempting to explain away the false statements in his reports by claiming that the statements had actually been made by J.L. during their interaction in the pre-primary area.
The jury rejected that testimony and found that Valenzuela deprived J.L. of his Fourth Amendment Constitutional right to be free from unreasonable search and seizure, which includes the right to be free from the use of excessive force. The jury also found that Valenzuela falsified the incident report with the intent to impede, obstruct, or influence a federal investigation, specifically the investigation of his excessive use of force against J.L.
“The jury has found that Marcos Valenzuela used excessive force and deprived a United States citizen of his right under the Fourth Amendment to be free from unreasonable search and seizure,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office takes every allegation of excessive force by law enforcement officers very seriously, and where those allegations are supported by the evidence, we will take the appropriate action to ensure that the transgressors are held accountable. Along with our law enforcement agency partners, we are dedicated to protecting the constitutional rights of all members of our community.”
Grossman thanked Assistant U.S. Attorneys Seth Askins and Alicia Williams and Paralegal Specialist Lina Douglas who prosecuted the case, along with former Assistant U.S. Attorney Christopher Tenorio and Special Agents with both the Federal Bureau of Investigation and Customs and Border Protection’s Office of Professional Responsibility for their excellent work on this case.
“Today's guilty verdict demonstrates the FBI’s commitment to holding everyone accountable for their criminal actions, regardless of the position they hold,” said FBI Special Agent in Charge Suzanne Turner. “I want to specifically thank Customs and Border Protection's Office of Professional Responsibility for their partnership and commitment in seeing this case to the end.”
“CBP employees and officers take an Oath of Office, a solemn pledge that conveys great responsibility and one that should be carried out at all times with the utmost professionalism,” said Elizabeth Cervantes, Special Agent in Charge of the CBP Office of Professional Responsibility in San Diego. “CBP employees who disregard that oath and instead choose to violate the trust of the citizens they swore to protect will be held accountable. CBP will continue to work with our partners at other agencies to seek out and investigate any instance of abuse. This layered approach and collaboration among federal agencies is critical to the mission of professional integrity. Although the percentage of prosecutions for abuse is very small, no incident is tolerated.”
“CBP stresses honor and integrity in every aspect of our mission, and the overwhelming majority of CBP employees and officers perform their duties with honor and distinction, working tirelessly every day to keep our country safe,” said Ryan Koseor, Port Director for the Calexico area ports of entry for U.S. Customs and Border Protection. “We do not tolerate abuse within our ranks, and condemn actions that would tarnish the reputation of our agency. I appreciate the work of our partners to investigate this officer for using excessive force and to bring this case to trial. As public servants, we are rightly held to a higher standard of conduct and are subject to the same laws and rules that apply to private citizens.”
Valenzuela is scheduled to be sentenced on July 8 before U.S. District Chief Judge Dana M. Sabraw.
DEFENDANT Case Number 21cr1056-JLS
Marcos Valenzuela Age: 30 El Centro, CA
SUMMARY OF CHARGES
Deprivation of Rights under Color of Law – Title 18, U.S.C., Section 242
Maximum penalty: Ten years in prison and $250,000 fine
Falsification of Records in a Federal Investigation – Title 18, U.S.C., Section 1519
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCIES
U.S. Customs and Border Protection, Office of Professional Responsibility
Federal Bureau of Investigation
San Diego Man Sentenced to 20 Years in Prison for Fentanyl Distribution Resulting in DeathRead the Press Release
Assistant U. S. Attorneys Larry Casper (619) 546-6734 and Shauna Prewitt (619) 546-7937
NEWS RELEASE SUMMARY – March 7, 2022
SAN DIEGO – Perry Edward Davis of San Diego was sentenced in federal court today to 20 years in prison for distributing the fentanyl that resulted in the death of Joshua Chambers, a 25-year-old husband and father of two young children from El Cajon.
Davis was convicted by a federal jury on October 7, 2021, after a trial before U.S. District Judge Larry A. Burns.
Chambers was one of three people who collapsed on December 21, 2019, at approximately 2:30 a.m., outside the QuarterDeck Cocktail Bar in El Cajon. Paramedics and first responders quickly identified the mass-collapse as an opioid overdose and administered Narcan – a medication designed to reverse the effects of an opioid overdose – to all three subjects. Two were revived and recovered, but Chambers never regained consciousness. He was declared deceased at approximately 3:39 a.m. The U.S. Attorney’s Office is releasing excerpts from a security video which was presented as evidence at Davis’ trial showing the victims collapsing.
VIEW VIDEOS
The investigation revealed that the three individuals had ingested what they believed was cocaine by snorting a “line” in Chambers’ vehicle shortly before each collapsed. Laboratory testing of a baggie found in the vehicle showed that it contained cocaine mixed with fentanyl; the evidence at trial showed that mixture was supplied by Davis shortly before it was used.
During sentencing, Judge Burns stated that the “effect fentanyl has is way worse, way more deadly, than other highly addictive and dangerous drugs that we see.” When addressing Davis, Judge Burns noted that, based on the trial evidence, “[i]t was clear to me that you were the purveyor” and that, “[b]ut for the intervention of first responders, we’d have three deaths rather than the one here.”
At today’s hearing, Assistant U.S. Attorney Larry Casper described the case as “truly tragic” and noted that neither Chambers nor the others knew the cocaine they were using was, in fact, laced with fentanyl. Casper explained that the case “should serve, in part, as a clarion call about the unsafe nature of illicit street drugs” and that “no controls on illicit drug suppliers or dealers can regulate what is actually being supplied.”
In a statement submitted to the court, Chambers’ wife said: “My husband was loved by so many. As a mother I suffer daily having to see my children miss their father. They are so young and they don't understand fully why their daddy had to go to heaven. It is so heartbreaking to see my children hurt and not be able to do anything to take it away and make it better. The biggest tragedy from all of this is that 2 innocent children have to grow up without a dad.”
Chambers’ mother noted that her son’s death “has left me numb for the rest of my life.”
Chambers’ wife and mother also expressed the hope that keeping Davis off the streets would save other lives.
“Today, a drug dealer has been held to account for the tragic death of Joshua Chambers,” said U.S. Attorney Randy Grossman. “A son, husband and father has left this world way too soon, and a devastated family will forever struggle with this senseless loss. The images of these victims collapsing is a very painful and unforgettable reminder of fentanyl’s powerful impact. Our efforts to prosecute those responsible for needless fentanyl-related deaths continues unabated.” Grossman thanked the prosecution team as well as the El Cajon Police Department, the Drug Enforcement Administration and agents from Narcotics Task Force Team 10, a multi-agency team that was created in July 2018 to address drug overdose deaths in San Diego, for their efforts on this case.
“This case is a dire reminder to the public that there are no safe recreational drugs. The DEA is now seeing fentanyl in a variety of recreational drugs in San Diego, to include stimulants,” said DEA Special Agent in Charge Shelly S. Howe. “In this case, the individuals thought they were using cocaine and it cost one of them - a young father of two - his life. If you are using drugs, please seek help with your addiction. It could save your life.”
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 20-CR-2500-LAB
Perry Edward Davis Age: 46 San Diego, California
SUMMARY OF CHARGE TO WHICH GUILTY VERDICT RETURNED
Distribution of Fentanyl Resulting in Death – Title 21 U.S.C. Section 841(a)(1) and (b)(1)(C)
Maximum Penalty – Mandatory Minimum of 20 years and a maximum of life
INVESTIGATING AGENCIES
El Cajon Police Department
Narcotics Task Force Team 10
Vista Man Pleads Guilty to Fraudulently Obtaining More than $300,000 in Unemployment BenefitsRead the Press Release
Assistant U. S. Attorneys Michael A. Deshong and Alicia Williams (619) 546-9290
NEWS RELEASE SUMMARY—March 4, 2022
SAN DIEGO - Darris Cotton of Vista pleaded guilty in federal court today to a fraud charge, admitting that he submitted false applications for unemployment benefits to California’s Employment Development Department.
As admitted in the plea agreement entered today before U.S. District Judge Todd W. Robinson, Cotton used third parties’ names, dates of birth, and social security numbers to submit false applications for benefits. Cotton listed an address in Vista, California on at least sixteen different applications. After California’s Employment Development Department (EDD) mailed debit cards containing the benefits to Cotton’s address, he took the cards to various locations to purchase money orders for the purpose of extracting the funds. Cotton admitted to fraudulently obtaining at least $312,000 in benefits. As part of his plea agreement, Cotton agreed to forfeit $97,400 in money orders and $15,139 in currency that was seized from him.
The United States Department of Labor funds unemployment benefits, but the administration of the benefits is overseen by EDD. To qualify for benefits, an individual must submit an application with their name, date of birth, social security number, and other personal information. If the information is approved, then EDD sends a debit card to the address provided in the application via U.S. Mail. In March 2020, the United States Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which included an economic relief package of more than $2 trillion designed to help the American people during the public health and economic crises that resulted from the COVID-19 pandemic. The CARES Act expanded the population of persons eligible for benefits, the time period during which persons are eligible for benefits, and/or the amount of benefits.
As set forth in his plea agreement, Cotton began submitting fraudulent applications for benefits just a few months after Congress passed the CARES Act and expanded these benefits. Cotton also admitted that he submitted fraudulent applications for benefits to EDD in addition to the sixteen specified in the plea agreement, and submitted fraudulent applications for benefits in other states such as Pennsylvania, Maryland, and Arizona. Cotton used the benefits he fraudulently obtained to purchase luxury items such as Gucci-brand backpacks.
Agents from United States Secret Service, Homeland Security Investigation, and Department of Labor Office of Inspector General and detectives from the San Diego Police Department conducted the investigation into dozens of fraudulent applications that were submitted in July and August of 2020. During the investigation, law enforcement seized approximately $97,000 in U.S. Postal and MoneyGram money orders and $15,000 in U.S. currency from Cotton.
“While so many deserving people were suffering from pandemic-related economic challenges, this defendant used a global pandemic to cash in,” said U.S. Attorney Randy Grossman. “These benefits are intended for those who truly need it, not for greedy people who exploit the system.” Grossman thanked the prosecution team and investigative agencies for their excellent work on this case.
“HSI special agents and our law enforcement partners have worked tirelessly to bring to justice criminal networks that are exploiting the global pandemic for personal financial gain,” said Special Agent in Charge Chad Plantz of HSI San Diego. “This guilty plea assures this individual can no longer illegally profit from resources dedicated toward those needing financial assistance due to the COVID-19 pandemic.”
“The Secret Service remains committed to pursuing those who seek to wrongfully benefit from CARES Act fraud,” said San Diego Acting Special Agent in Charge Timothy Scott. “The hard work from the skilled agents and investigators who worked this case, and many others like it, is making a difference not just here in San Diego, but around the country.”
Cotton is scheduled to be sentenced on May 27.
DEFENDANT Case Number 21cr1108-TWR
Darris Cotton Age: 30 Vista, CA
SUMMARY OF CHARGES
Conspiracy to Commit Mail Fraud—Title 18, U.S.C., Section 1349
Criminal Forfeiture—Title 18, U.S.C., Section 981
Maximum penalty: Twenty years in prison; $250,000 fine or twice the gross gain or loss from the offense, whichever is greater; criminal forfeiture of all proceeds derived from the offense.
AGENCY
United States Secret Service
Homeland Security Investigations
Department of Labor Office of Inspector General (OIG)
San Diego Police Department
Carlsbad Police Department
Former Tungsten Heavy Powder & Parts CEO Arrested and Charged with Unlawful Exportation of Defense Articles including to the People’s Republic of ChinaRead the Press Release
Assistant U.S. Attorneys Kareem A. Salem (619) 546-8904 and John Parmley (619) 546-7957
NEWS RELEASE SUMMARY – March 4, 2022
SAN DIEGO – Joe Sery, former owner and chief executive officer of Tungsten Heavy Powder & Parts, and his brother, Dror Sery, are charged in a federal grand jury indictment unsealed today with violations of federal export laws pursuant to the International Traffic in Arms Regulations (ITAR).
Tungsten Heavy Powder & Parts, or THPP, is a San Diego-based company that provides tungsten fragments, sub-assemblies, and other weapon grade components for United States military contracts.
According to the indictment, between January 1, 2016, and December 12, 2019, Joe Sery entered into contracts with various aerospace and defense companies on behalf of THPP. Joe Sery then obtained ITAR- controlled technical data and drawings from these companies to allow THPP to fulfill the contracted order. Some of THPP’s projects included the construction of an Advanced Rapid Response Weapon, a 155-millimeter Bi-Modal Warhead, a R9E Warhead, and an 81-millimeter Cowling Cone. These drawings contained information, which is required for the design, development, production, manufacture, assembly, operation, repair, testing, maintenance, or modification of defense articles.
Despite being educated and trained regarding the requirements of ITAR, Joe Sery and his brother Dror Sery – a foreign national and dual citizen of Israel and South Africa – knowingly and willfully exported from the United States to the People’s Republic of China, the Republic of India and elsewhere overseas, defense articles covered by the United States Munitions List without first obtaining permission from the United States Department of State’s Directorate of Defense Trade Controls.
The indictment further alleges that Joe Sery and Dror Sery accomplished this, in part, by creating a non-THPP email address to surreptitiously receive ITAR-controlled documents. Additionally, shortly after Dror created the outside email address Joe Sery provided Dror Sery with administrative level access of THPP’s “ShareFile system,” which contained ITAR-controlled data. Subsequently, on several occasions, Joe Sery and Dror Sery exported technical drawings from the United States via email messages to each other, including while Dror was located in India and the People’s Republic of China.
Joe Sery is expected to be arraigned in federal court on Monday; an arrest warrant has been issued for fugitive Dror Sery. He is believed to be residing in Israel.
THPP is cooperating with the investigation.
“The indictment alleges that these brothers disregarded important regulations designed to keep sensitive information from falling into the hands of those who would harm America,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office will work together with our law enforcement partners to protect military technology.” Grossman thanked the prosecution team, HSI and DCIS for their excellent work on this case.
“This arrest highlights the outstanding partnerships between HSI and the Department of Defense’s investigative agencies who work tirelessly every day to ensure our protected military technology and weaponry are not used by foreign actors against our warfighters and allies on the battlefield,” said HSI San Diego Special Agent in Charge Chad Plantz. “This arrest sends a clear message that those entrusted with our country’s military technology and weaponry will be held responsible for its safeguarding.”
“Mr. Sery is accused of compromising sensitive defense technology, and today’s arrest is an important step toward protecting our country’s information,” said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS will always take aggressive action with our law enforcement partners to deter and investigate any such threats to our national defense.”
DEFENDANTS Case Number 21CR2898-GPC
Joe Sery Age: 77 San Diego, CA
Dror Sery Age: 70 Israel/Unknown
SUMMARY OF CHARGES
Conspiracy to Commit Offenses Against the United States- Title 18 U.S.C., Sections 371,554; Title 22 U.S.C., 2778(b)(2), (c); Title 22 CFR Sections, 120, 121.1 , 123.1, 127.l(a)(4)
Exportation of Defense Articles Without a License and Aiding and Abetting To Do Same
Title 22 U.S.C., Sections 2778(b)(2), (c); Title 22 CFR 120, 121.1, 123, 127; Title 18 U.S.C., 2
Criminal Forfeiture – Title 18 U.S.C., Sections 98l(a)(l)(c); Title 28 Section 246l(c); Title 22 U.S.C., 401
Maximum penalty: Twenty years in prison and $1 million fine
AGENCIES
U.S. Homeland Security Investigations
U.S. Defense Criminal Investigative Services
U.S. Army, Criminal Investigation Division
National Security Division, Department of Justice
San Diego Man Sentenced to More than 20 years for Three Armed RobberiesRead the Press Release
Assistant U. S. Attorney Mario J. Peia (619) 546-9706
NEWS RELEASE SUMMARY – March 3, 2022
SAN DIEGO – A man who committed three armed robberies, including a robbery in which he fired his gun at a clerk, was sentenced in federal court today to 248 months in prison.
Devon Dwayne Brooks pleaded guilty in July to two counts of Hobbs Act Robbery, one count of Attempted Hobbs Act Robbery, and two counts of Brandishing a Firearm in Furtherance of a Crime of Violence.
According to his plea agreement, Brooks admitted that he robbed the Alpha and Omega Jewelry store in National City on March 26, 2019; the Valerio’s Bakeshop in National City on December 30, 2019; and the Winchell’s Donut House in National City on January 2, 2020. A gun was used in all three robberies. During the Winchell’s Donut House robbery, Brooks used a revolver to demand money from the cash register. When the clerk resisted, a struggle ensued. Brooks took a step back, aimed his revolver, and fired one shot, ultimately missing the clerk. Brooks then punched and pistol-whipped the clerk before fleeing empty handed.
“This defendant terrorized and injured store clerks and put their lives at risk,” said U.S. Attorney Randy Grossman. “He changed their lives forever. This is a prime example of why the Department of Justice prioritizes violent crime. The U.S. Attorney’s Office and our law enforcement partners will continue to prioritize the investigation and prosecution of violent crimes in a manner that promotes victim rights and ensures just consequences for those who perpetrate violent crimes.” Grossman thanked the prosecution team, the FBI and the National City Police Department for their excellent work on this case.
“Today’s sentence should send a very clear message to violent criminals throughout the county – the FBI’s Violent Crimes Task Force will utilize all investigative resources and law enforcement partnerships to track down and bring to justice those who commit violent acts and put lives in danger,” said FBI Special Agent in Charge Suzanne Turner. “The FBI is proud to work alongside our partners at the National City Police Department and the United States Attorney’s Office to help keep our communities safe. I hope this sentence brings a sense of justice and closure to those victims whose lives were viciously impacted.”
DEFENDANT Case Number 20cr0239-WQH
Devon Dwayne Brooks Age: 23 San Diego, CA
SUMMARY OF CHARGES
Hobbs Act Robbery/Attempted Hobbs Act Robbery – Title 18, U.S.C., Section 1951
Maximum penalty: Twenty years in prison
Brandishing a Firearm in Furtherance of a Crime of Violence – Title 18, U.S.C., Section 924(c)
Maximum Penalty: Life; Consecutive Mandatory Minimum: Seven years per count
AGENCY
Federal Bureau of Investigation
National City Police 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.
Former El Cajon Tax Preparers Admit to Filing Hundreds of False Tax ReturnsRead the Press Release
Assistant U. S. Attorneys Joseph J.M. Orabona (619) 546-7951 and Jennifer E. McCollough (619) 546-8773
NEWS RELEASE SUMMARY – March 2, 2022
SAN DIEGO – Two former tax preparers based in El Cajon pleaded guilty in federal court today to their involvement in a tax return scam that resulted in the filing of hundreds of false returns.
In a hearing before U.S. District Judge Gonzalo P. Curiel, Mimi Bozzo, also known as Mimi Morrison, and Vincent Bozzo, admitted their involvement in a conspiracy to defraud the United States by aiding and assisting the filing of false income tax returns. Mimi and Vincent Bozzo admitted they previously owned and operated a tax return preparation business in El Cajon under various business names, including “All Pro Services” and “A to Z Tax Preparation,” that solicited taxpayers by passing out flyers and business cards at local welfare offices, homeless shelters, and trolley stations.
The Bozzos additionally admitted that from January 2014 through April 2018, they knowingly prepared and filed several hundred federal income tax returns that contained false Schedule C business income and expenses, resulting in fraudulently inflated tax credits and refunds. Specifically, the Bozzos encouraged taxpayers to create false receipts for income and expenses, and then prepared and submitted tax returns based on these false receipts. In total, the false returns prepared and filed by Vincent and Mimi Bozzo caused the IRS to disperse refunds to taxpayers with losses over $225,000 and $540,000 respectively
“Tax fraud continues to be a growing problem plaguing our community,” said U.S. Attorney Randy Grossman. “When these tax fraud scams committed by local tax preparers are brought to our attention, we will work with the IRS to unravel the fraud and prosecute those responsible for defrauding the IRS and honest taxpayers in order to protect the integrity of our tax system.” Grossman thanked the prosecution team and the IRS for their excellent work on this case.
“The Bozzos, working as return preparers, had a duty to assist clients with preparing and filing accurate income tax returns. Instead the Bozzos targeted those in need at local welfare offices and homeless shelters to perpetrate a multi-year tax fraud scheme,” said Ryan L. Korner, IRS Criminal Investigation Special Agent in Charge of the Los Angeles Field Office. “IRS Criminal Investigations reminds the public to choose a tax preparer wisely. Each year taxpayers’ personal information is comprised by unscrupulous tax preparers. For more information go to IRS.gov.”
Mimi and Vincent Bozzo are scheduled to be sentenced on June 13, 2022, at 8:30 a.m. before U.S. District Judge Gonzalo P. Curiel.
The public is reminded that tax-related identity theft occurs when someone uses your stolen SSN (or the SSN of a dependent) to file a tax return claiming a fraudulent refund. If your SSN is compromised and you know or suspect you are a victim of tax-related identity theft, the IRS recommends these additional steps:
• Respond immediately to any IRS notice; call the number provided.
• Complete IRS Form 14039, Identity Theft Affidavit, if your e-filed return is rejected because of a duplicate filing under your SSN. Attach the competed form to your return and mail according to instructions.
• Continue to pay your taxes and file your tax return, even if you must do so by paper.
• If you previously contacted the IRS and did not have a resolution, you may contact them for specialized assistance at 1-800-908-4490.
Link: The link to IRS Form 14039 is https://www.irs.gov/pub/irs-pdf/f14039.pdf
DEFENDANTS Criminal Case No. 20CR2944-GPC
Mimi Bozzo Age: 60 Trinity, Texas
Vincent Bozzo Age: 60 Trinity, Texas
SUMMARY OF CHARGES
Title 18, United States Code, Section 371 B Conspiracy to Defraud the United States
Maximum penalties: Five years in prison, $250,000 fine
INVESTIGATING AGENCIES
Internal Revenue Service-Criminal Investigation
Suspect in Burglary at Poway Weapons & Gear Charged with Federal Firearms OffensesRead the Press Release
Assistant U. S. Attorneys Joseph Orabona (619) 546-7951 or Elizabet Brown (619) 546-8921
NEWS RELEASE SUMMARY – March 1, 2022
SAN DIEGO – Jaime Angel Zamora was arraigned today in federal court on charges involving theft of firearms from the premises of Poway Weapons & Gear, a federal firearms licensee, and felon in possession of firearms.
According to a federal complaint unsealed today, in the early morning hours of November 21, 2021, Zamora and another suspect burglarized Poway Weapons & Gear in Poway by prying open the side door of the business and stealing approximately 12 firearms from the premises.
“The United States Attorney’s Office and our law enforcement partners in the Southern District of California are committed to enforcing federal firearms laws,” said U.S. Attorney Randy Grossman. Grossman thanked the prosecution team, the ATF, San Diego Police Department, San Diego County Sheriff’s Department and San Diego County Probation Department for their excellent work on this case.
“ATF remains committed to reducing gun crime and to making our communities safer,” said Bureau of Alcohol, Firearms and Explosives (ATF) Los Angeles Field Division Special Agent in Charge Monique Villegas. “ATF works with its local, state and federal partners to stop the flow of guns being used in crimes, by targeting these individuals to prevent, interrupt, and reduce violence. Successful arrests and prosecutions are the result of effective partnerships.”
“This case is a fine example of deputies in the field and the Sheriff's Crime Laboratory working together," said Acting San Diego County Sheriff Kelly Martinez. “We join our federal law enforcement partners in their commitment to bring those who commit gun crimes to justice.”
According to the complaint, Zamora and the other suspect attempted to make entry into the business through a window, but the metal bars prevented their entry. Surveillance video showed the suspects gaining access to the gunsmith office and carrying out multiple firearms from the business. During the commission of the burglary, surveillance video showed Zamora (“Suspect #1”) wearing gloves, a dark hoodie, a light hat underneath the hoodie, a light face mask, light khaki pants, and white shoes, according to court records. The other suspect (“Suspect #2”) was wearing gloves, a dark hoodie, a light hat, a dark face mask, light khaki pants, and black shoes. Both suspects were carrying a pry tool in hand as they approached the store.
According to the complaint, the suspects used a stolen white Ford Econoline van during the commission of the burglary. Surveillance video showed that the van had several unique features – front end damage, no front plate, and a roof rack. Law enforcement officials later recovered the van, which had been abandoned after the burglary in San Diego. Inside the van, officers found a Poway Weapons & Gear bag, a black flashlight, a blue bandana, and a brown beanie.
According to the complaint, the Sheriff’s lab conducted a DNA analysis and found that the brown beanie recovered from the stolen van had a very strong inclusive DNA profile for Zamora.
According to court records, Zamora and the other suspect allegedly stole five semi-automatic pistols and seven semi-automatic rifles from Poway Weapons & Gear.
According to the complaint, in December 2021, law enforcement officers searched Zamora’s residence and found items consistent with the burglary at the Poway Weapons & Gear, such as blue and white bandanas, white shoes, black and gray gloves, a dark ski mask, and a blue jacket. While officers did not recover any of the firearms from the burglary, they did find two firearms in a vehicle where Zamora was an occupant, including a privately-made-firearm, also known as a “ghost gun.” Zamora was subsequently arrested and held in state custody on criminal charges.
On February 17, 2022, a sealed complaint and an arrest warrant were filed against Zamora in federal court. Zamora was arrested today on the federal charges, transferred from state custody to federal custody, and appeared in federal court this afternoon. He was ordered detained without bond at today’s hearing.
This case is part of the Department of Justice’s nationwide commitment to reduce gun crimes known as Project Safe Neighborhoods, or PSN. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
DEFENDANT Case Number 22MJ0603
Jaime Angel Zamora Age: 34 San Diego, CA
SUMMARY OF CHARGES
Theft of Firearms from the Premises of a Federal Firearms Licensee – Title 18, U.S.C., Section 922(u)
Maximum penalty: Ten years in prison, $250,000 fine, and forfeiture of all firearms/ammunition
Felon in Possession of a Firearm – Title 18, U.S.C., Section 922(g)(1)
Maximum penalty: Ten years in prison, $250,000 fine, and forfeiture of all firearms/ammunition
AGENCIES
Bureau of Alcohol, Tobacco, Firearms and Explosives
San Diego County Sheriff’s Department
San Diego Police Department
San Diego County Probation Department
*The charges and allegations contained in a complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Project Safe Neighborhoods (PSN) is a nationwide commitment to reduce gun crime in American communities by networking with existing local programs that target these issues and provide these programs with additional tools necessary to be successful. PSN has operated as the U.S. Department of Justice’s primary initiative focused on reduction of gun crime since May of 2001. PSN is a collaborative effort between federal, state, and local law enforcement and prosecutors.