Southern District of California
Press releases recorded for this federal judicial district.
Pacific Beach Resident Pleads Guilty to Distributing Fentanyl that Caused Two Overdoses, One of Them FatalRead the Press Release
Assistant U. S. Attorney Michael A. Deshong (619) 546-9290
NEWS RELEASE SUMMARY – October 24, 2019
SAN DIEGO – Pacific Beach resident Maya Kol pleaded guilty in federal court today, admitting that he sold fentanyl powder that caused the death of one man and sent another to the hospital over Labor Day weekend in September 2018. A third man - Kol’s source of the fentanyl - also fatally overdosed that weekend from the same batch.
Kol, a Cambodian national living illegally in San Diego, admitted in his plea agreement that he purchased the fentanyl powder believing it to be cocaine. However, after he sampled the powder he noticed it tasted it different and then became woozy and nearly lost his balance from the effects of it. Despite his own troubling experience with the powder, Kol sold it to others and told them it was cocaine.
According to his plea agreement, on September 7, 2018, Kol met three individuals, J.E., J.H., and L.S., and delivered to them one-half gram of fentanyl powder and represented it as cocaine. Several hours later L.S. contacted Kol asking for help. Kol arrived to J.H. and L.S.’s apartment to find J.E. and J.H. non-responsive. When Kol realized authorities would be coming to the scene, he went back to his home and flushed his remaining fentanyl powder down the toilet. J.E. died from the fentanyl powder Kol sold to him. J.H. had to be administered Narcan (used to treat opioid overdoses) and rushed to the hospital, but survived the ordeal. L.S. was admitted to the hospital the following day for lingering symptoms. A subsequent search of Kol’s residence uncovered more than $5,000 in cash, scales and other indicia of drug sales.
J.E.’s death was one of three deaths that occurred in Pacific Beach over Labor Day weekend in 2018, including the individual who sold the fentanyl powder to Kol. Kol is not charged with the other deaths.
“Another life is gone because of fentanyl and the greed of traffickers,” said U.S. Attorney Robert Brewer. “This dealer knew he was selling a dangerous drug and did it anyway. As the opioid epidemic rages across the nation, we will do everything we can to save lives, and that includes pursuing charges against dealers of the poison that is killing people every single day in this country.”
“Not only did Mr. Kol’s greed and selfishness cost a life, but he tried to cover up his actions and destroy the weapon that killed J.E. – in this case fentanyl,” said DEA Special Agent in Charge Karen Flowers. “A message to the dealers of death: DEA will find out who you are and we will bring you to justice. You cannot cover up your crimes and you will pay for taking the life of another human being.”
Kol is scheduled to be sentenced on March 6, 2020 before U.S. District Judge Jeffrey T. Miller.
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, and multiple law enforcement agencies to investigate and prosecute the distribution of dangerous illegal drugs that result in overdose deaths.
Many opioid addicts start their addiction with legitimate prescription drugs. Drug cartels, looking to capitalize on the opioid epidemic, are making counterfeit prescription pills using deadly fentanyl.
Fentanyl-related deaths are rapidly climbing to unprecedented levels. The San Diego County Medical Examiner’s Office reports there have been 89 cases of fentanyl-related deaths so far in 2019, with almost three months left in the year.
Should this trend continue for the remainder of 2019, the death toll could potentially reach 120, which would amount to a 33 percent increase over last year’s total of 90 deaths, and a staggering 700 percent hike over five years ago when there were 15.
In July 2018, Narcotics Task Force Team 10 was created to address drug overdose deaths in San Diego County. Team 10 led the investigation into the cluster of fentanyl drug overdoses in Pacific Beach in September 2018. The victim was 47 years old and he left behind his wife.
DEFENDANTS Case Number 19cr1277-JM
Maya Kol Age: 41 Pacific Beach, CA
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 21, U.S.C., Section 841(a)(1)
Maximum Penalty: 20 years’ imprisonment
AGENCIES
Drug Enforcement Administration
San Diego Police Department
Homeland Security Investigations
California Department of Health Care Services
Federal Bureau of Investigation
San Diego County District Attorney’s Office
Former Honolulu Prosecutor Katherine Kealoha, Former Police Chief Louis Kealoha Plead GuiltyRead the Press Release
Special Attorneys Michael Wheat (619) 546-8437, Joseph Orabona (619) 546-7951, Janaki Gandhi (619) 546-8817 and Colin McDonald (619) 546-9144
NEWS RELEASE SUMMARY – October 22, 2019
HONOLULU, Hawaii – Former Honolulu Deputy Prosecutor Katherine Kealoha pleaded guilty in federal court to bank fraud, aggravated identity theft and drug charges, while her husband, former Honolulu Police Chief Louis Kealoha, pleaded guilty to bank fraud, in separate hearings today.
The pleas resolve all outstanding charges that were pending against the Kealohas following their corruption conviction in another case by a federal jury in June 2019. U.S. District Judge J. Michael Seabright’s acceptance of the guilty pleas means the Kealohas will not face a second trial in January 2020 on the bank fraud charges, and Katherine Kealoha will not face a third trial in May 2020 on the drug charges.
In June 2019, the Kealohas were convicted by a federal jury for abusing their power by conspiring with two police officers to frame Katherine Kealoha’s uncle, Gerard Puana, for a crime he did not commit in a desperate attempt to discredit his claim that the Kealohas stole a substantial amount of money from him and his 100-year-old mother – Katherine’s own grandmother – Florence Puana.
As part of the guilty pleas today, the Kealohas also entered into sentencing agreements in the case where the jury found them guilty of conspiracy to frame the uncle. In the sentencing agreements, the Kealohas agreed to waive their appellate rights. The parties also agreed to recommend that the Court order the Kealohas to pay $289,714.96 in restitution to the victims of their fraud, including $46,261.00 to Gerard Puana and $243,453.9 to Florence Puana.
In her plea agreements today, Katherine Kealoha resolved two cases with admissions that she was involved in an elaborate bank fraud scheme and a drug trafficking conspiracy with her brother, anesthesiologist Rudolph B. Puana, who wrote medically unnecessary prescriptions for controlled substances such as oxycodone and fentanyl in order to resell them. When the brother came under police suspicion, Katherine Kealoha used her law enforcement position to take control of the investigation and ensure that she and her brother were not prosecuted. Moreover, Katherine Kealoha also admitted that she obtained fraudulent loans from several banks and credit unions and stole more than $165,000 inheritance of two children, Ransen Taito and Ariana Taito, for whom she served as financial guardian. In her plea agreement, the parties agreed to recommend that the Court order Katherine Kealoha to pay restitution $165,269.82 to the Taitos and to forfeit $63,476.97 from the sale of the Kealohas’ home.
Both Kealohas admitted in plea agreements that they defrauded banks with elaborate schemes in order to obtain loans to fund their extravagant lifestyle. Louis Kealoha’s plea agreement said the couple spent more than $591,000, which was derived from: (1) stolen proceeds from a reverse mortgage obtained by Florence Puana; (2) stolen funds belonging to the Taito children; and (3) loan proceeds obtained through banks and credit unions. In his plea agreement, Louis Kealoha agreed that the Court order him to pay $165,269.82 to the Taitos and to forfeit $63,476.97 from the sale of the Kealohas’ home.
The Court will reset all of the sentencing hearings at a status hearing scheduled for next week.
DEFENDANTS
Katherine P. Kealoha Age: 49 Honolulu, Hawaii
Louis M. Kealoha Age: 59 Honolulu, Hawaii
SUMMARY OF CHARGES
Katherine Kealoha CR No. 17-00582-JMS-WRP
Conspiracy, in violation of 18 U.S.C. § 371
Maximum Penalty: Five years in prison, $250,000 fine
Obstruction of Official Proceeding, in violation of 18 U.S.C. § 1512(c)(2)
Maximum Penalty: Twenty years in prison per count, $250,000 fine per count
Katherine Kealoha CR No. 18-00068-JMS-WRP
Bank Fraud, in violation of 18 U.S.C. § 1344
Maximum Penalty: Thirty years in prison, $1 million fine
Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A
Maximum Penalty: Mandatory term of imprisonment of two years, to be served consecutive to the sentence imposed for any underlying charge; fine of up to $250,000
Katherine Kealoha CR No. 19-00015 JMS-WRP
Misprision of Felony, in violation of 18 U.S.C. § 4
Maximum Penalty: Three years in prison; fine of up to $250,000;
Louis Kealoha CR No. 17-00582 JMS-WRP
Conspiracy, in violation of 18 U.S.C. § 371
Maximum Penalty: Five years in prison, $250,000 fine
Obstruction of Official Proceeding, in violation of 18 U.S.C. § 1512(c)(2)
Maximum Penalty: Twenty years in prison per count, $250,000 fine per count
Louis Kealoha CR No. 18-00068-JMS-WRP
Bank Fraud, in violation of 18 U.S.C. § 1344
Maximum Penalty: Thirty years in prison, $1 million fine
AGENCY
Federal Bureau of Investigation
Honolulu, Portland, and San Diego Divisions
Overprescribing Opioids Costs La Jolla Doctor $125,000Read the Press Release
Assistant U.S. Attorney Dylan M. Aste (619) 546-7621
NEWS RELEASE SUMMARY – October 16, 2019
SAN DIEGO – Dr. Roger A. Kasendorf, an osteopathic physician practicing in La Jolla, agreed to pay $125,000 to resolve allegations that he illegally prescribed opioids to his patients. The highly addictive and frequently abused opioids he prescribed included fentanyl, hydromorphone, oxymorphone, and oxycodone.
In response to the Justice Department’s focus on combatting the opioid epidemic, the Drug Enforcement Administration (DEA) and the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) investigated Dr. Kasendorf’s prescribing practices. This investigation arose from data analytics tools which allow the Department of Justice to perform a variety of functions, including identifying statistical outliers, such as which doctors prescribe the highest opioid dosages and which doctors prescribe combinations of opioids and other drugs known to increase the risk of addiction, abuse, and overdose. Based on the investigation, the United States contends that Dr. Kasendorf wrote prescriptions for opioids, including fentanyl, that were not issued for a legitimate medical purpose and while not acting in the usual course of his professional practice in violation the Controlled Substances Act and the False Claims Act.
“Opioid addiction often begins with doctors prescribing excessive amounts of pain killers,” said U.S. Attorney Robert S. Brewer, Jr. “While we continue to prosecute criminals who supply opioids on the dark web, we will also hold doctors accountable when they write illegitimate and unnecessary opioid prescriptions. This settlement demonstrates our commitment to combatting the opioid epidemic on all fronts.”
“Whether you are a patient, a prescriber, a distributor, a manufacturer or a regulator, you play an important role in utilizing opioids correctly and pursuant to the law,” said DEA Special Agent in Charge Karen Flowers. “When a DEA registrant operates outside the law, there are consequences. In this instant, a civil fine.”
The Centers for Disease Control and Prevention (CDC), the American Academy of Pain Medicine, the American Pain Society, state agencies and medical boards, and other medical literature provide guidance on appropriate practices when prescribing opioids. One common tool is for health care providers to determine the Morphine Milligram Equivalent (MME, also commonly referred to as Morphine Equivalent Dose or MED) of prescribed opioids. MME is a uniform scale used to determine daily opioid dosage by using an equivalency factor to calculate a dose of morphine that is equivalent to the prescribed opioid. The CDC recommends primary care clinicians who prescribe opioids for chronic pain outside of active cancer treatment, palliative care, or end‑of‑life care should avoid increasing opioid daily dosage over 90 MME or carefully justify a decision to titrate daily dosage to over 90 MME. Prescribers should also seek to avoid prescribing opioid pain medication in combination with benzodiazepines (e.g., Xanax, Valium, Klonopin) when possible, and should consider whether the benefits outweigh the risks of combining opioids with other depressants (i.e., muscle relaxants and sleep medications).
Report illicit pharmaceutical activities and prescription abuse to DEA at 877-RX-Abuse (877‑792‑2873). Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the U.S. 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, with the assistance of agents and investigators from the DEA and HHS‑OIG.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Online Drug Dealer Sentenced to 15 Years for Distributing Counterfeit Pills Containing Fentanyl that Caused Overdose DeathRead the Press Release
Assistant U. S. Attorney Michael A. Deshong (619) 546-9290
NEWS RELEASE SUMMARY – October 16, 2019
SAN DIEGO – Drug dealer Trevon Antone Lucas was sentenced in federal court today to 15 years in prison for selling the counterfeit oxycodone pills containing deadly fentanyl that caused the overdose death of a La Jolla resident in June of 2018.
Lucas, a resident of Highland, California, pleaded guilty in June to Distribution of Fentanyl Resulting in Death. In his plea, he admitted that he posted online advertisements for the illegal sale of prescription pills. The investigation revealed that Lucas was warned about the danger of the pills he was selling on two separate occasions. In late 2017, Lucas was warned that the pills he was selling were counterfeit and contained fentanyl that was much stronger than oxycodone pills. Then, just two months prior to the victim’s death in mid-2018, Lucas was explicitly warned that counterfeit pills containing fentanyl had caused the overdose of a San Diego resident. Lucas was undeterred and continued to sell the counterfeit pills.
“Trevon Lucas knew the pills he was selling were deadly, but he sold them anyway, showing a remarkable disregard for the safety and well-being of his fellow human beings,” said U.S. Attorney Robert Brewer. “His greed transcended his humanity, and for that he will serve a very long sentence.” Brewer praised prosecutor Michael Deshong and federal, state and local investigators who worked hard to protect the community from the scourge of opioids and achieve justice for the victim and his family.
“Our hearts go out to the victim’s family,” said DEA Special Agent in Charge Karen Flowers. “The potential of their loved one will never be realized; but their hopes, dreams, love and laughter will forever be remembered. Earthly justice is a small measure of what awaits those who prey on the weak out of greed.” Flowers further stated, “We at DEA are proud to be part of bringing justice to families scarred by the scourge of drug trafficking. We are relentless and we will not shy from putting murderers out of business. No matter how hard it is or how long it takes, DEA will always be in pursuit until we can close the case and look at the victim’s loved ones and say, justice is done.”
According to Lucas’ plea agreement, on the evening of June 29, 2018, Lucas met the victim and sold him nine “blues,” a slang term for prescription oxycodone pills, for $240. The “blues” purchased from Lucas were counterfeit and contained deadly fentanyl—the same pills that Lucas had previously been warned about selling. The victim died after consuming the pills. The victim’s mother found him dead in his room the following morning.
Three other individuals, Cenclair Marie Fields, Kevin Vandale Chandler and Donovan Adontas Carter were charged in the same indictment with conspiring with Lucas to distribute prescription hydrocodone pills. All three have since pleaded guilty and been sentenced.
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, and multiple law enforcement agencies to investigate and prosecute the distribution of dangerous illegal drugs that result in overdose deaths.
Many opioid addicts start their addiction with legitimate prescription drugs. Drug cartels, looking to capitalize on the opioid epidemic, are making counterfeit prescription pills using deadly fentanyl. More than 399,000 people died from opioid overdoses, including prescription and illicit opioids, from 1999–2017.
In July 2018, Narcotics Task Force Team 10 was created to address drug overdose deaths in San Diego County. Team 10’s first investigation was the fentanyl drug overdose of this La Jolla man on June 30, 2018. The victim was 37 years old and he left behind his mother and brother. He had recently completed his bachelor’s degree in radiological sciences and was preparing to fly to the East Coast for a specialized program in dosimetry at the time he passed.
DEFENDANTS Case Number 18cr4224-CAB
Trevon Antone Lucas Age: 23 Highland, CA
SUMMARY OF CHARGES
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
AGENCIES
Drug Enforcement Administration
San Diego Police Department
Homeland Security Investigations
California Department of Health Care Services
Federal Bureau of Investigation
San Diego County District Attorney’s Office
San Diego Man Who Posed as a Federal Agent to Defraud Immigrants out of $2.5 Million Sentenced to 91 MonthsRead the Press Release
Assistant U.S. Attorney Andrew Young (619) 546-7981 and Assistant U.S. Attorney Meghan Heesch (619) 546-9442
SAN DIEGO – Hardev Panesar of San Diego was sentenced today in federal court by U.S. District Judge Gonzalo P. Curiel to 91 months in custody for his leadership role in an immigration fraud scheme.
According to his plea agreement, Panesar conspired with others, including Rafael Hastie and Gurdev Singh, to induce unauthorized immigrants to pay money based on false and fraudulent claims that the defendants could secure immigration status for the victims and their families. Panesar misled the victims into believing that he could obtain immigration documents or legal immigration status by pretending to be an agent with the Department of Homeland Security. Panesar wore a DHS jacket and showed purported official credentials to his victims.
The plea agreement outlined several dates in 2016 where Panesar successfully obtained thousands of dollars by pretending to be a DHS official. The money paid by the victims totaled over $2.5 million, which was converted to the personal use and benefit of Panesar and his co-defendants. According to statements made at sentencing, Panesar also lost a significant portion of the money he stole from victims as a victim himself in a Nigerian “advanced fee scheme.” At a prior sentencing hearing, one of the victims testified in court that his family gave Panesar and Gurdev Singh approximately $250,000 with the hopes of receiving green cards—a devastating financial loss that contributed to the depression and eventual suicide of a family member.
Panesar’s sentence includes a six-month custodial sentence for an additional charge of Failure to Appear. On June 21, 2018, while released on bond, Panesar fled to Mexico and failed to appear at a Motion Hearing before Judge Curiel set for June 22, 2018. He was captured in Mexico and deported to the United States approximately six weeks later.
Earlier this year, Panesar’s co-defendants were sentenced by Judge Curiel. Rafael Hastie was sentenced to 46 months in custody and ordered to pay $942,000 in restitution to the victims. Gurdev Singh was sentenced to 27 months in custody and ordered to pay $392,850 in restitution to the victims. The Court ordered Panesar to pay approximately $2.5 million in restitution to his victims.
Additionally, last week, former HSI supervisor Johnny Martin was found guilty by a federal jury in a related case for the false statements he made to the FBI in connection with their investigation into this immigration fraud scheme. Martin will be sentenced on January 17, 2020.
In imposing the sentence, Judge Curiel described Panesar’s scheme as “one of the more serious cases this Court has handled” in recent years. “Mr. Panesar preyed on the most vulnerable…these are people who wanted to live and experience the American dream. . . . Mr. Panesar pretended he could be the one who provided the American dream.” Judge Curiel added, “This offense is serious because of the heartlessness and callousness required to perpetuate this fraud on so many for so long.”
“Pretending to be a legitimate government agent to scam hundreds of individuals of their life savings undermines the crucial trust we bestow upon our law enforcement partners,” said U.S. Attorney Robert S. Brewer, Jr. “When that trust is betrayed for personal enrichment, our office will aggressively prosecute the fraudsters and seek restitution for the victims.”
“Panesar’s fraud scheme was particularly egregious as he attempted to use the veil of a U.S. government official to obtain millions of dollars from those trying to obtain legal status in the United States,” said Scott Brunner, FBI Special Agent in Charge. “Falsely claiming to be a federal official degrades the integrity of the system and therefore has serious consequences. Today, Panesar’s destructive scheme has been shut down, he has a federal conviction, and must serve a prison sentence as a result of his actions.”
DEFENDANTS Case Numbers: 17CR1371-GPC, 18CR3229-GPC
Hardev PANESAR Age: 71 El Cajon, California
Rafael HASTIE Age: 49 Tijuana, Mexico
Gurdev SINGH Age: 58 Bakersfield, California
SUMMARY OF CHARGES
17CR1371-GPC
Count 1: 18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution.
Counts 2-4: 18 U.S.C. § 1343, Wire Fraud;
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution
Counts 5-10: 18 U.S.C. § 912, False Personation of an Officer or Employee of the United States;
Maximum Penalty: Three years in prison, $250,000 fine
Count 11: 31 U.S.C. § 5324(a)(3), Structuring Domestic Financial Institutions;
Maximum Penalty: Ten years in prison, $250,000 fine, forfeiture
18CR3229-GPC
Count 1: 18 U.S.C. § 3146(a)(1), Failure to Appear After Pre-Trial Release;
Maximum Penalty: Ten years in prison, $250,000 fine.
AGENCY
Federal Bureau of Investigation
U.S. Customs and Border Protection - Office of Field Operations
U.S. Customs and Border Protection - Office of Professional Responsibility
Alleged Ring Leaders of Transnational Migrant Smuggling Organization IndictedRead the Press Release
Assistant U. S. Attorneys Timothy D. Coughlin (619) 546-6768 and Zachary J. Howe (619) 546-8693
NEWS RELEASE SUMMARY – October 15, 2019
SAN DIEGO – Three men were indicted by a federal grand jury today on charges that they were members of a migrant-smuggling operation based in Tecate, Mexico, that recruited juvenile drivers from San Diego high schools.
Cristian Hirales-Morales, Marcos Julian Romero and Sergio Anthony Santivanez, all U.S. citizens, were arraigned in federal court this afternoon before U.S. Magistrate Judge William V. Gallo.
According to the indictment, defendant Hirales is alleged to be the leader of the organization that smuggled undocumented migrants across the U.S.-Mexico border to various motels in the greater Los Angeles area. Once at these motels, Hirales’ top lieutenants, including Romero and Santivanez, held the migrants until they received payments - usually $8,000 per person - from the migrants’ sponsors. The organization used juveniles and young adults from local high schools as load drivers and recruited drivers using internet platforms like Craigslist. Hirales, based in Tecate, handled Mexico-based arrangements with migrants and smugglers. He also coordinated illegal crossings into the United States, tracked load drivers using live-location phone apps, and guided load drivers to the waiting migrants by sending pin drops with exact Google Maps coordinates, among other things, the indictment said. Once load drivers found the undocumented migrants, Hirales turned over the smuggling to his U.S.-based co-conspirators, who scouted border patrol checkpoints and handled smuggling fees at Los Angeles area motels.
Romero, allegedly a top lieutenant in the organization, recruited drivers and sent their personal information, such as photos of their driver’s licenses and vehicles, to Hirales and the U.S.-based organizers and managers, the indictment said. Romero also tracked smuggling events from the border and directed the payment of smuggling fees at the Los Angeles area motels. He dealt face-to-face with sponsors and collected smuggling proceeds in cash for the smuggling organization.
Santivanez, also an alleged manager in the organization, transported undocumented migrants; coordinated smuggling events from the border; dealt with sponsors of the migrants and collected smuggling proceeds at the Los Angeles motels.
All three defendants were arrested on complaints after Hirales crossed the U.S./Mexico border at the Tecate Port of Entry. The indictment tracks particular alien smuggling events that occurred in July, August and September of 2019. It charges conspiracies involving bringing undocumented migrants to the United States, as well as transporting them once they were in the United States. Border Patrol investigators tracked command-level managers to hotels in the Los Angeles area and surveilled the exchange of smuggling fees conducted by Romero and Santivanez. According to the indictment, the proceeds from the alien smuggling events were funneled back to Hirales in Mexico by codefendants Romero and Santivanez and other members of the smuggling organization.
“We will not allow criminal organizations to recruit our youth to smuggle people or drugs into our nation,” said U.S. Attorney Robert Brewer. “We will bring the full power of the justice system down on these recruiters.” Brewer praised the U.S. Border Patrol and prosecutors Timothy D. Coughlin and Zachary J. Howe for their work on the case.
Chief Patrol Agent Douglas Harrison stated, “I am proud of the great work our agents demonstrated in this investigation. Their actions have kept our communities safe and dismantled this dangerous smuggling organization.”
This case is the result of ongoing efforts by the United States Border Patrol–San Diego Sector to target active transnational criminal organizations in the Southern District of California. One of the principal missions of the United States Border Patrol is to identify, disrupt, dismantle, and prosecute high-level members of alien smuggling organizations.
DEFENDANTS Case Number 19CR4089-DMS
Cristian Hirales-Morales Age: 31 Tecate, Baja California, Mexico
Marcos Julian Romero Age: 21 San Diego, California
Sergio Anthony Santivanez Age: 23 San Diego, California
SUMMARY OF CHARGES
Count 1 (Defendants Hirales and Romero) – Conspiracy to Bring In Illegal Aliens for Financial Gain – Title 8, U.S.C., Sections 1324(a)(1)(A)(i), (a)(1)(A)(v)(I), and (a)(1)(B)(i)
Maximum penalty: Ten years in prison and $250,000 fine
Count 2 (All Defendants) – Conspiracy to Transport Illegal Aliens for Financial Gain – Title 8, U.S.C., Sections 1324(a)(1)(A)(ii), (a)(1)(A)(v)(I), and (a)(1)(B)(i)
Maximum penalty: Ten years in prison and $250,000 fine
Counts 3-6 (Defendants Hirales and Romero) – Bringing in Aliens for Financial Gain – Title 8, U.S.C., Section 1324(a)(2)(B)(ii); Aiding and Abetting – Title 18, U.S.C., Section 2; and Pinkerton v. United States, 328 U.S. 640 (1946)
Maximum penalty: Each count carries a mandatory minimum term of imprisonment of three years and a maximum of 10 years for the first or second violation. Any additional violations carry a mandatory minimum term of imprisonment of five years and a maximum of fifteen 15 years
AGENCY
United States Border Patrol
San Diego Sector/Campo Station Intelligence Team
United States Border Patrol – BORTAC – Special Operations Division
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
GirlsDoPorn Owners and Employees Charged in Sex Trafficking ConspiracyRead the Press Release
Assistant U. S. Attorneys Joseph Green (619) 546-6955 and Sabrina Feve (619) 546-6786
SAN DIEGO – The owners and two employees of the popular adult websites GirlsDoPorn and GirlsDoToys were charged in federal court today with sex trafficking crimes in connection with a scheme to deceive and coerce young women to appear in sex videos.
According to a complaint, owners Michael James Pratt and Matthew Isaac Wolfe along with adult film performer and producer Ruben Andre Garcia and administrative assistant Valorie Moser used deception and false promises to lure the victims, who had responded to ads for modeling jobs that would supposedly pay $5,000. Eventually the women were told the job was really for adult films.
To persuade the women to participate, the defendants convinced them they could remain anonymous and that their videos would not be posted on the internet. In reality, the entire purpose was to post the videos on the internet. According to financial records, the websites have generated more than $17 million in revenue.
According to the complaint, the circumstances were not at all what was promised. Some of the women were pressured into signing documents without reviewing them and then threatened with legal action or outing if they failed to perform; some were not permitted to leave the shooting locations until the videos were made; family and friends and the general public eventually saw the videos online; some victims were harassed and ridiculed and estranged from their families as a result; and some were sexually assaulted and in at least one case raped. Some were forced to perform certain sex acts they had declined to do, or they would not be paid or allowed to leave.
Garcia was arrested on October 9; Wolfe was taken into custody Tuesday by immigration officials and transferred to federal criminal custody. They were arraigned this afternoon. Moser’s arraignment is scheduled for tomorrow before U.S. Magistrate Judge Linda Lopez. Pratt is a fugitive.
On October 9 at approximately 7:00 p.m., FBI agents executed a search warrant at an office located in the Spreckels Theatre Building located at 121 W. Broadway in San Diego. According to the search warrant, the office was used by members of the conspiracy to operate the GirlsDoPorn website.
Any additional victims of the alleged crime are encouraged to call the San Diego FBI at 858-320-1800.
DEFENDANTS Case Number 19cr19mj4453
Michael James Pratt Age: 36 Unknown
Matthew Isaac Wolfe Age 37 San Diego,
Ruben Andre Garcia Age: 31 San Diego,
Valorie Moser Age: 37 San Diego,
SUMMARY OF CHARGES
Counts 1-3 (charging Pratt, Wolfe and Garcia)
Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1591(a) and (b)(1)
Minimum penalty: Fifteen years in prison; Maximum penalty: life in custody, $250,000 fine.
Count 4 (charging all defendants)
Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1594
Maximum Penalty: Life in prison, $250,000 fine.
INVESTIGATING 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.
Former Federal Agent Convicted of Lying to the FBIRead the Press Release
Assistant U.S. Attorneys Meghan Heesch (619) 546-9442 and Andrew P. Young (619) 546-7981
NEWS RELEASE SUMMARY – October 4, 2019
SAN DIEGO – Johnny Martin, a former supervisor in the Department of Homeland Security, was convicted by a federal jury today of lying to the FBI about providing confidential information from law enforcement databases to outsiders. The information was used by fraudsters who duped more than 100 victims out of millions of dollars with false promises of green cards.
During the investigation, the FBI uncovered confidential government information in the email inbox of Hardev Panesar. Panesar and his associate, Rafael Hastie, posed as Department of Homeland Security (DHS) agents and conned immigrants into paying exorbitant fees for the promise of green cards they would never see. Panesar and Hastie were able to convince victims they were bona fide federal agents in part by presenting them with confidential information obtained from law enforcement databases.
The FBI suspected that Martin, who at the time was a supervisory special agent with Homeland Security Investigations, was the source of this confidential information. When FBI agents interviewed Martin in June 2017, he denied sending Hastie the confidential government information.
After the interview, the FBI discovered that – contrary to his denials – Martin had personally extracted the information from law enforcement databases, and had emailed this information directly to the Hastie. The FBI confirmed that the information - which included personally identifiable information, immigration and criminal history - was used by Panesar and Hastie in an attempt to defraud the victims in the immigration fraud scheme. There is no evidence that Martin knew that Hastie was using the information he provided as part of their scam.
After a three-day trial and 11 hours of deliberation, the jury found that despite his denials, Martin lied to the FBI about sending that information to Hastie.
“This immigration scam was successful, in part, because a government official betrayed his badge and then lied about it,” said U.S. Attorney Robert Brewer. “No one, including members of the law enforcement community, is above the law.” Brewer praised the FBI and prosecutors Andrew Young and Megan Heesch for their hard work on the case.
“No matter your role, status, or position in the community, it is a federal crime to lie to the FBI,” said Special Agent in Charge Scott Brunner. “Lying to an FBI agent as part of an investigation is not only fundamentally wrong but could place lives in danger and frustrate the administration of justice. Mr. Martin knew better and today he was held accountable.”
“Law enforcement officials are held to the highest standard and integrity is at the core of those standards,” said Pete Flores, Director of Field Operations for U.S. Customs and Border Protection, San Diego. “As in this case, we are fully committed to working with our law enforcement partners to ensure violators are held accountable.”
Martin’s case is related to a separate immigration fraud case pending against Panesar, Hastie and Gurdev Singh (Case No. 17CR1371-GPC).
Panesar pleaded guilty in February and is scheduled to be sentenced on October 9 at 1 p.m. before Judge Gonzalo P. Curiel; Hastie pleaded guilty in October 2018 and was sentenced to 46 months in custody and was ordered to pay $942,310 in restitution; Gurdev Singh pleaded guilty in June 2018 and was sentenced to 27 months in custody and ordered to pay $392,850 in restitution.
DEFENDANT Case Number: 18CR2835-GPC
Johnny Martin Age: 60 Chula Vista, California
SUMMARY OF CHARGE
Making a False Statement to a Federal Agent, in violation of 18 U.S.C. § 1001
Maximum Penalties: Five years in prison, $250,000 fine
AGENCIES
Federal Bureau of Investigation
Customs and Border Protection - Office of Field Operations
Customs and Border Protection - Office of Professional Responsibility
Dark Web Vendors Plead Guilty to Cryptocurrency Money Laundering ConspiracyRead the Press Release
Assistant U.S. Attorneys Daniel Silva and Colin McDonald (619) 546-9713
NEWS RELEASE SUMMARY – September 30, 2019
SAN DIEGO – Aidan Curry and Connor Brooke pleaded guilty in federal court today for conspiring to launder Dark Web proceeds through their unlicensed money transmitting business, which sold cryptocurrency to complete strangers in exchange for cash.
As part of their guilty pleas, the defendants agreed to forfeit tens of thousands of dollars’ worth of cash, cryptocurrency, and high-end, sophisticated hardware including computers, phones, hard drives and storage devices that were involved in the money laundering conspiracy.
Special Agents from Homeland Security Investigations identified Curry and Brooke as managers of a San Diego-based business advertising the ability and willingness to sell Bitcoin (a specific type of cryptocurrency) for a premium, and always in cash, to the public. Persons who purchase or sell contraband on online black markets (also known as the “Dark Web”) use cryptocurrency such as Bitcoin to conduct transactions. Cryptocurrency provides a vendor and customer with perceived anonymity. The Dark Web is a network of encrypted communication systems that can only be accessed using special software tools. Before someone can use cryptocurrency, they must first convert their “real,” fiat currency (such as United States Dollars) into the cryptocurrency. A common way to do so is through an unlicensed money transmitting business (an “MTB”) that exchanges cryptocurrency for cash.
As admitted in the plea agreements entered today before U.S. Magistrate Judge Michael S. Berg, Curry and Brooke conducted, controlled, managed, supervised, directed and owned all or part of a cryptocurrency MTB called “BayCoins.” Curry described the unlicensed MTB to an acquaintance over text messages, stating: “I’m basically like a currency exchange place for Bitcoin”; and that he and Brooke advertised their MTB on a website that was equivalent to the “Craigslist of bitcoin”.
By August 2018, BayCoins had posted two separate online solicitations – one with Curry’s information and the other with Brooke’s. The advertisements promised “quick, easy, and hassle free” Bitcoin transactions, with a “non-negotiable” five percent transaction fee, and always for cash. By accepting cash in exchange for cryptocurrency, as opposed to other forms of payment such as electronic money transfers, checks, or cash deposits into a bank account, Curry and Brooke operated their MTB in relative anonymity and evaded the anti-money laundering scrutiny of other licensed and registered financial institutions. This anonymity extended to their customers as well.
BayCoins generated sufficient profits, alongside a growing inventory of cryptocurrency, to fund the defendants’ acquisition, sale, and distribution of marijuana on various Dark Web marketplaces. After receiving payment for the marijuana, Curry and Brooke then sold the cryptocurrency for additional profit through the BayCoins unlicensed MTB.
U.S. Attorney Robert Brewer said, “The United States will continue to pursue, uncover and dismantle money laundering and narcotics trafficking organizations seeking to operate behind multiple layers of anonymity – whether it’s the Dark Web, through unlicensed money transmitting businesses, or with sophisticated software. Compliance with the anti-money laundering laws of the United States is not an option. We treat knowing compliance failures for what they are: a crime. I applaud the excellent work of the federal agents and Assistant U.S. Attorneys who unraveled these complex crimes.”
“Homeland Security Investigations Special Agents worked diligently to uncover this Dark Web scheme led by Curry and Brooke that used cryptocurrency such as Bitcoin to conduct illegal transactions,” said Nick Annan, special agent in charge of HSI in San Diego. “The investigation resulting in today’s guilty plea is an excellent example of the commitment and partnership between HSI and prosecutors to seek out individuals and criminal networks who try to conceal their illicit activities under the cloak of the Dark Web.”
The investigation was led by Special Agents of Homeland Security Investigations. This case is being prosecuted by Assistant U.S. Attorneys Daniel Silva and Colin McDonald.
Sentencing is scheduled to occur on January 6, 2020. Curry and Brooke both face a maximum of 20 years in prison.
DEFENDANTS Case Number 19-CR-3839-GPC
Aidan Curry San Diego, CA Age: 23
Connor Brooke San Diego, CA Age: 25
SUMMARY OF CHARGES*
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison and $500,000 fine
AGENCIES
Homeland Security Investigations
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Perris Man Charged with Smuggling Unregistered PesticidesRead the Press Release
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – September 26, 2019
SAN DIEGO – Luis Alberto Vargas of Perris was arraigned today on a felony complaint charging him with smuggling pesticides into the United States from Mexico. Vargas made his appearance before U.S. Magistrate Judge F.A. Gossett.
The complaint alleges that Vargas smuggled three containers with 2.25 liters of Mexican pesticides into the United States on September 9, 2019. According to the complaint, Vargas brought in pesticides containing the active ingredients chlorpyrifos and abamectin, chemicals which are considered to be restricted-use pesticides in the United States because they are lethal if ingested, harmful if absorbed through the skin or inhaled, and toxic to bees and other wildlife.
In the United States, federal regulations limit the commercial sale and distribution of restricted-use pesticides to those who have received training and certification approved by the U.S. Environmental Protection Agency in mitigating the dangers of such chemicals.
The complaint alleges that Vargas lacks the certification needed for purchase or commercial use of such pesticides. Only pesticides registered with the EPA may be imported, sold, or distributed in the United States, and all pesticides intended for commercial use in the United States must bear their EPA registration number on their labels. According to the complaint, the containers imported by Vargas were labeled only in Spanish and bore no EPA registration numbers.
“These types of chemicals, which are extremely dangerous to humans if ingested or inhaled, must be kept out of the hands of untrained individuals,” said U.S. Attorney Robert Brewer. “Misapplication of these chemicals could cause untold harm to our citizens and the environment.”
“We allege that the defendant knowingly smuggled unregistered pesticides into the country, violating environmental regulations established to protect human health and the environment,” said Jay Green, Special Agent-in Charge of EPA’s Criminal Investigation Division. “EPA and its partners worked together to apprehend the defendant and prevent this illegal product from threatening public safety.”
“The illegal importation and use of restricted pesticide products puts people's health and the environment at significant risk,” said Juan Munoz, deputy special agent in charge for HSI San Diego. “HSI agents will continue to investigate these individuals that are involved in the illicit distribution of these dangerous products that threaten our communities.”
California Department of Toxic Substances Control Chief Investigator, Hansen Pang said, “It is notable to see State and Federal Law Enforcement work together on a no-tolerance initiative to protect the environment.”
DEFENDANT
Luis Alberto Vargas Age: 28 Perris, California
SUMMARY OF CHARGES
Smuggling, 18 U.S.C. § 545
Maximum penalty: Twenty years in prison, fine of $250,000
AGENCIES
U.S. Environmental Protection Agency, Criminal Investigations Division
Department of Homeland Security, Homeland Security Investigations
California Department of Toxic Substances Control, Office of Investigations
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
“Golden Goose” of the Mexican Mafia Sentenced to 30 Years for Role in Drug Distribution Conspiracy and Attempted Robbery Ordered by the Mexican MafiaRead the Press Release
NEWS RELEASE SUMMARY – September 24, 2019
SAN DIEGO – Fady Esho, was sentenced yesterday in federal court to 30 years in prison for his aggravated role in a drug distribution conspiracy as well as his participation in an attempted armed robbery ordered by the Mexican Mafia.
The charges stem from an investigation by the FBI-led Violent Crimes Task Force, Gang Group (VCTF-GG) into drug trafficking, firearms and violent crimes being committed by certain gang members and their associates in San Diego.
“Taking this Mexican Mafia member off the street for three decades is a big win for public safety,” said U.S. Attorney Robert Brewer. “This significant sentence will prevent defendant, who was a violent firearms and drug trafficker in addition to being a Mexican mafia member, from further menacing our community.” The U.S. Attorney praised prosecutors Todd Robinson and Kareem Salem as well as the FBI and the Violent Crimes Task force-Gang Group for their diligence in prosecuting this important case.
"The 30-year sentence handed down today sends a clear message to anyone that is involved with the criminal activities of violent gangs and the Mexican Mafia: Expect to be investigated by the FBI Violent Crimes Task Force-Gang Group (VCTF-GG) and aggressively prosecuted,” said FBI SAC Scott Brunner. “Because of this long-term investigation, crimes of violence were prevented and a dangerous criminal enterprise trafficking in drugs and firearms throughout Southern California was decimated. Our community is safer with these gang members and associates behind bars.”
The defendant pleaded guilty on May 9, 2019 (18cr3424-LAB) to possessing methamphetamine with the intent to distribute; being a felon in possession of a firearm; attempting to commit a Hobbs Act Robbery; and possession of a firearm in furtherance of a crime of violence. That same day, he also pleaded guilty (18cr4217-LAB) to one count of conspiring with others to distribute over 50 grams of methamphetamine.
According to the prosecutor, Fady Esho was nicknamed the “Golden Goose” by several individuals associated with the Mexican Mafia based on his capability to distribute firearms and narcotics as well as collect money at their direction.
On June 13, 2018 agents intercepted communications of the defendant and two of his co-defendants who discussed their intention to commit an armed robbery and assault on behalf of the Mexican Mafia. In response, San Diego Police Department Gang Suppression Officers stopped the vehicle Fady Esho was driving as his drove to their intended victim. Ultimately, officers recovered four firearms, 56 rounds of ammunition and zip ties, which officers believe were for restraining the intended victim.
In addition to his role in the attempted robbery, the defendant was sentenced for his role, organization, and distribution of multiple pounds of methamphetamine.
Intercepted communications also revealed that the defendant was engaged in the distribution of methamphetamine to several customers, including an individual who on two occasions flew from Florida to purchase pounds of methamphetamine from the defendant. But for the quick response from members of the VCTF-GG, pounds of methamphetamine, which were packaged and shipped via the United States Postal Service, would have found its way to drug users in the Florida area.
SUMMARY OF CHARGES
Possession with the Intent to Distribute Methamphetamine, in violation of Title 21, U.S.C. Section 841 (a)(1)
Maximum Penalty: Forty years in prison; Five year mandatory minimumFelon in Possession of a Firearm, in violation of Title 18, U.S.C. Section 922(g)
Maximum Penalty: Ten years in prisonAttempted Hobbs Act Robbery, in violation of Title 18, U.S.C. Section 1951
Maximum Penalty: Twenty years in prisonPossession of firearm in furtherance of a crime of violence, in violation of Title 18, U.S.C. Section 924(c)
Maximum Penalty: Five years mandatory minimum in prisonConspiracy to Distribute Methamphetamine, in violation of Title 21, U.S.C. Sections 841 (a)(1) and 846
Maximum Penalty: Up to life in prison; Ten year mandatory minimumDEFENDANT Case Numbers: 18CR3424-LAB & 18CR4217-LAB
Fady Esho Age: 37 San Diego
INVESTIGATING AGENCIES
Violent Crimes Gang Task Force
Task Force agencies include:
FBI, ATF, DEA, BOP, USPIS, California Department of Corrections and Rehabilitation, San Diego District Attorney's Office, San Diego Police Department, San Diego Sheriff's Department, National City Police Department, Chula Vista Police Department, La Mesa Police Department, El Cajon Police Department and Federal Bureau of Prisons- Joint Intelligence Sharing Initiative
Inmate Sentenced to 20 Years for Distributing Drugs and Cell Phones in State Prison by Bribing an OfficerRead the Press Release
NEWS RELEASE SUMMARY – September 23, 2019
SAN DIEGO – Martin Gomez of California was sentenced in federal court today to 240 months in prison for leading a conspiracy to smuggle methamphetamine, heroin, marijuana, and cell phones through a Corrections Officer into a state prison.
Gomez had previously pleaded guilty to Conspiracy to Distribute Methamphetamine pursuant to a plea agreement, after being indicted with 10 other co-conspirators.
One co-defendant, Juan Gutierrez, charged in the conspiracy remains awaiting trial, which is scheduled for January 21, 2020. The trial was continued from May 2019 after Gutierrez struck his own attorney in open court during a status hearing just prior to his trial.
From his cell in a California state prison in Los Angeles, Gomez organized and directed a group of at least 11 other participants to smuggle contraband into a different state prison, Richard J. Donovan (“RJD”), in San Diego. Gomez arranged for individuals outside of prison to deliver the drugs and cell phones to a Corrections Officer, Anibal Navarro. He then instructed Navarro to collect the contraband and money, and deliver the contraband to certain inmates inside the prison. Gomez directed those inmates to retrieve the contraband and deliver it to other inmates within RJD.
Gomez approached Navarro while an inmate at RJD, offering him an avenue to make extra money Gomez knew Navarro needed. Navarro was paid between $1,000 and $2,000 each time he smuggled the contraband into the prison. Even after Gomez was transferred out of RJD to another prison, Gomez led the conspiracy for over two years. Over 500 grams of methamphetamine, heroin, cell phones, and other contraband were smuggled into RJD at Gomez’s direction while he was incarcerated elsewhere.
Gomez was able to continue coordinating and supervising the operation by conducting conference calls with Sylvia Gonzales, Gomez’s associate outside the prison, Navarro, and others. During these calls, the conspirators arranged for narcotics, cellular telephones and cash to be delivered to Navarro at various locations in Southern California.
In addition to Gonzales, the smuggling operation was also aided by others outside the prison, including Everaldo Santana, Norma Alvarado-Medina and Vanessa Jackson. These individuals provided Navarro with the narcotics and cellular telephones to smuggle into the prison.
After the contraband was smuggled into the prison, RJD inmates Agustin Aceves, Juan Gutierrez, John Price, Jeremy Gaither and Hugo Alvarado received and distributed the narcotics and cellular telephones to other inmates. The phones were used to coordinate criminal activity both inside and outside the facility.
“This defendant personally profited from a corrupt drug smuggling scheme that significantly interfered with the rehabilitation of his fellow inmates,” said U.S. Attorney Robert S. Brewer, Jr. “He also created a dangerous prison environment by providing cell phones, which can result in drug trafficking, fraud, and even violence. This sentence signals that justice does not stop at the prison gate; those who engage in prison corruption will face significant consequences.”
With the exception of Gutierrez, Gomez’s codefendants have all pleaded guilty. They have been sentenced as follows.
Sylvia Gonzales was convicted of Conspiracy to Commit Honest Services Wire fraud, and sentenced to five years’ probation.
Everaldo Santana was convicted of Conspiracy to Commit Honest Services Wire Fraud, and sentenced to time-served, with three years’ supervised release.
Agustin Aceves was convicted of Conspiracy to Distribute Methamphetamine, and sentenced to 151 months incarceration, to run 50% concurrent and 50% consecutive to his state case, followed by five years’ supervised release.
Norma Alvarado-Medina was convicted of Conspiracy to Distribute Methamphetamine, and sentenced to 41 months, with three years’ supervised release to follow.
John Price was convicted of Conspiracy to Distribute Methamphetamine and Heroin, and was sentenced to 51 months incarceration, to run 50% concurrent and 50% consecutive with his state case, followed by four years’ supervised release.
Vanessa Jackson was convicted of Conspiracy to Distribute Methamphetamine, and sentenced to 30 months, to be followed by four years of supervised release.
Hugo Alvarado was convicted of Conspiracy to Commit Honest Services Wire Fraud, and sentenced to 18 months to run concurrent with his state sentence, with three years of supervised release to follow.
Edgar Arreguin was convicted of Conspiracy to Commit Honest Services Wire Fraud, and sentenced to time served with three years’ supervised release.
The FBI encourages the public to report allegations of public corruption to our hotline at (877) NO-BRIBE (662-7423).
DEFENDANTS Case No. 17cr0446-AJB
MARTIN GOMEZ Age 58 Lancaster Prison
SYLVIA GONZALES Age 59 Sylmar, California
EVERALDO SANTANA Age 27 Los Angeles, California
AGUSTIN ACEVES Age 45 Lancaster Prison
NORMA ALVARADO-MEDINA Age 36 Al Monte, California
JUAN GUTIERREZ Age 44 Vacaville, California
JOHN PRICE Age 23 Salinas Valley Prison
VANESSA JACKSON Age 42 Pasadena, California
JEREMY GAITHER Age 35 Valley State Prison
HUGO ALVARADO Age 27 High Desert Prison
EDGAR ARREGUIN Age 44 Lemon Grove, California
DEFENDANTS Case No. 16cr1664-AJB
ANIBAL NAVARRO Age 40 Chula Vista, California
SUMMARY OF CHARGES
Conspiracy to Distribute Illegal Narcotics – Title 21, U.S.C., Sections 841(a) and 846
10-year mandatory minimum
Maximum penalty: Life in prison and $20,000,000 fine
AGENCY
Federal Bureau of Investigation – San Diego Field Office
California Department of Corrections and Rehabilitation’s Office of Internal Affairs
California Department of Corrections and Rehabilitation’s Investigative Service Unit
United States Postal Service – Inspector Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Massive Takedown Targets East County Drug Trafficking NetworksRead the Press Release
NEWS RELEASE SUMMARY – September 19, 2019
SAN DIEGO – Eight indictments were unsealed today in San Diego federal court charging 85 members of drug distribution networks linked to the Sinaloa Cartel, with federal drug trafficking, money laundering and firearms offenses.
During the coordinated takedown that began early this morning, investigators executed over a dozen search warrants and seized approximately four pounds of methamphetamine and two firearms. As of today at 1 p.m., 47 of the 85 defendants are either in federal or state custody. Authorities are continuing to search for 38 defendants. Many of the defendants are scheduled to be arraigned before U.S. Magistrate Judge Allison H. Goddard at 2:00 p.m. tomorrow.
According to the indictments and other publicly filed court documents, this year-long investigation led by the Drug Enforcement Administration and the Internal Revenue Service targeted multiple San Diego-based drug distribution and money laundering networks led respectively by Juan Carlos OCHOA, Rene VALDEZ Jr., Ramon CASTILLO, Michael WRIGHT, Alfonso ARROYO, Douglas BOWEN, Samuel BECERRA, and Javier VERGARA. These affiliated networks supplied multi-kilogram quantities of controlled substances (primarily methamphetamine and heroin but also fentanyl) to dozens of subdistributors located throughout Southern California. These networks were also responsible for laundering tens of thousands of dollars in narcotics proceeds back to Sinaloa Cartel-associated drug traffickers in Mexico. During this investigation, agents coordinated seizures of narcotics and drug proceeds throughout San Diego County and across the United States.
To avoid detection by law enforcement, the defendants also utilized various encrypted communication services like Signal and WhatsApp to communicate among themselves. Despite their sophisticated efforts, law enforcement penetrated this network with a variety of investigative techniques, including physical surveillance, obtaining phone records, financial documents, tracking warrants on telephones and vehicles, and undercover agents. Over the course of the investigation, agents obtained dozens of search warrants and conducted a 10-month-long federal wiretap to track the communications and the location of the defendants. In conjunction with the wiretaps, agents ultimately seized approximately 175 pounds of methamphetamine, heroin, and fentanyl tied to these networks, approximately $50,000 in cash, multiple firearms, and a 2020 Cadillac Escalade (valued at over $115,000).
“Today we sent a message to drug traffickers in our community. If you sell drugs in San Diego, we will find you and prosecute you to the full extent of the law,” said U.S. Attorney Robert Brewer. “I want to congratulate the outstanding federal, state, and local law enforcement cooperation that has resulted in this highly successful investigation. This case represents yet another critical strike against the Sinaloa Cartel and its U.S.-based networks.”
“Today’s operation was about community care taking,” said DEA Special Agent in Charge Karen Flowers. “We took criminals off the street in South County who were selling drugs and committing violent crimes - robberies - home invasions - identity theft - fraud - and other property crimes. The void left is an opportunity for the communities in South County to exhale and breathe in fresh air. Freedom is priceless. Today South County is free to live without a criminal undertone which eroded their daily quality of life.”
“A significant portion of the indictments unsealed today are alleged money laundering conspiracy violations and the asset forfeiture allegations,” stated Assistant Special Agent in Charge Johnathan Smith. “Multiple defendants are charged with conspiracy to commit money laundering violations, a charge which carries a statutory maximum sentence of 20-years imprisonment. These are serious crimes that come with serious time.”
This case was led by the Drug Enforcement Administration’s Narcotics Task Force (NTF) and the Internal Revenue Service. The NTF is a DEA-led task force comprised of federal and local law enforcement from the DEA, San Diego County Sheriff’s Department (SDSD), the San Diego Police Department (SDPD), United States Border Patrol (USBP), and the San Diego County Probation Office. Agents and officers from the United States Marshals Service, United States Secret Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Prisons also provided vital assistance for the investigation. Attorneys from the Department of Justice, Office of Enforcement Operations, Electronic Surveillance Unit, likewise provided critical work as part of the investigative team.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state, and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
The United States is represented in court by Assistant U.S. Attorneys Matthew J. Sutton, and Mario J. Peia.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Defendant Information
19-cr-3624-CAB Indictment - Click HERE
Defendants Criminal Case No: 19-cr-3624-CAB
Defendant Number
Name
Hometown
1
Juan Carlos Ochoa
El Cajon, CA
2
Belinda Maria Menke
El Cajon, CA
3
Oscar Clemente-Perez
El Cajon, CA
4
Anton Dockery
El Cajon, CA
5
Amira Novelo-Torres
Tijuana, MX
6
Guillermo Castellano
El Cajon, CA
7
Monica Alcantar
El Cajon, CA
8
Alberto Frayre
Chula Vista, CA
9
Ivan Rodriguez
El Cajon, CA
10
Brian Perin
San Diego, CA
11
Edward DiBartola
San Diego, CA
12
Juanita Ortiz
El Cajon, CA
13
Lorena Torres
El Cajon, CA
14
Marcus Dewayne Caldwell
San Diego, CA
15
Candace Marie Spears
San Diego, CA
16
Eduardo Lerma
El Cajon, CA
17
Gene Fitzgerald
San Diego, CA
18
Melissa Young
San Diego, CA
19
Jessie Avina
El Cajon, CA
Summary of Charges
Conspiracy to Distribute Controlled Substances (21 U.S.C. §§ 841(a)(1) and 846)
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(2) and (h))
Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release.
19-cr-3625-CAB Indictment - Click HEREDefendants Criminal Case No: 19-cr-3625-CAB
Defendant Number
Name
Hometown
1
Alfonso Arroyo
San Diego, CA
2
James Anthony Tate
San Diego, CA
3
Alice Chairez
San Diego, CA
4
Zena Marie Gonzalez
San Diego, CA
5
Steven Geiss
San Diego, CA
6
Tommy Diego Duenas
San Diego, CA
7
Josephina Hernandez
San Diego, CA
8
Kajlid Jafar Wilks
San Diego, CA
Summary of Charges
Conspiracy to Distribute Controlled Substances (21 U.S.C. §§ 841(a)(1) and 846)
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(2) and (h))
Possession with Intent to Distribute Methamphetamine (21 U.S.C. § 841(a)(1))
Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release.
19-cr-3626-CAB Indictment - Click HEREDefendants Criminal Case No: 19-cr-3626-CAB
Defendant Number
Name
Hometown
1
Samuel Becerra
San Diego, CA
2
Gabrielle Logue
San Diego, CA
3
Kelly Daniels
San Diego, CA
4
Larry Meisner
San Diego, CA
5
Walter Kuttner
Spring Valley, CA
6
Kelly Jean Kelly
San Diego, CA
7
Kurt Roiz
San Diego, CA
8
Rodolfo Andrade
Chula Vista, CA
9
Alfredo Gomez
San Diego, CA
Summary of Charges
Conspiracy to Distribute Controlled Substances (21 U.S.C. §§ 841(a)(1) and 846)
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(2) and (h))
Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release.
19-cr-3627-CAB Inictment - Click HEREDefendants Criminal Case No: 19-cr-3627-CAB
Defendant Number
Name
Hometown
1
Douglas Bowen
San Diego, CA
2
Erick Cifuentes
San Diego, CA
3
John Bordwell Jr.
San Diego, CA
4
Raya Jaye Kimball
San Diego, CA
5
Stephen Robert Chavez
San Diego, CA
6
Robert David Houser
San Diego, CA
7
Justin Scott Baker
San Diego, CA
8
Janette Lee Taylor
San Diego, CA
9
Emilio Vanegas
San Diego, CA
10
Christopher Nobis
San Diego, CA
11
Maximino Padilla
San Diego, CA
12
Erika Marlene Ramirez-Ramirez
San Diego, CA
13
Heaven Rapp
San Diego, CA
14
Shelley Marie Cobb
San Diego, CA
15
Sarrah Jean Kent
San Diego, CA
16
David Hopkins
San Diego, CA
17
Matthew Bogan
San Diego, CA
18
Emily Uscanga
San Diego, CA
19
Michael Bowen
Colorado Springs, CA
20
Edson Garcia
San Diego, CA
21
Brandon Brooks
San Diego, CA
22
Raheem Jackson
San Diego, CA
23
Heather Kieley
San Diego, CA
24
Yvette Romero
San Diego, CA
25
Bobby Lee Crisp
San Diego, CA
26
Dario Navarro
San Diego, CA
Summary of Charges
Conspiracy to Distribute Controlled Substances (21 U.S.C. §§ 841(a)(1) and 846)
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(2) and (h))
Felon in Possession of a Firearm (18 U.S.C. § 922(g)(1))
Importation of a Controlled Substance (21 U.S.C. §§ 952, 960 and 963)
Possession with Intent to Distribute Methamphetamine (21 U.S.C. § 841(a)(1))
Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release.
19-cr-3628-CAB Indictment - Click HEREDefendants Criminal Case No: 19-cr-3628-CAB
Defendant Number
Name
Hometown
1
Ramon Castillo
San Diego, CA
2
Samuel Jones
San Diego, CA
3
Julio Noriega
San Diego, CA
4
Johanna Trujillo
San Diego, CA
Summary of Charges
Conspiracy to Distribute Controlled Substances (21 U.S.C. §§ 841(a)(1) and 846)
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(2) and (h))
Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release.
19-cr-3629-CAB Indictment - Click HEREDefendants Criminal Case No: 19-cr-3629-CAB
Defendant Number
Name
Hometown
1
Rene Valdez Jr.
San Diego, CA
2
Araceli S. Lomeli
San Diego, CA
3
David Valdez
San Diego, CA
4
Robert Tate Allen
San Diego, CA
5
Sergio Eduardo Gutierrez Martinez
Tijuana, MX
6
Milton Perez Cruz
Tijuana, MX
Summary of Charges
Conspiracy to Distribute Controlled Substances (21 U.S.C. §§ 841(a)(1) and 846)
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(2) and (h))
Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release.
19-cr-3630-CAB Indictment - Click HEREDefendants Criminal Case No: 19-cr-3630-CAB
Defendant Number
Name
Hometown
1
Javier Vergara
San Diego, CA
2
Raul Alonso Varela-Ruiz
San Diego, CA
3
Michelangelo Becerra
San Diego, CA
4
Candice Harrington
San Diego, CA
5
Amanda Bitticks
San Diego, CA
6
Eduardo Pardo
San Diego, CA
7
Rose Velasquez
San Diego, CA
Summary of Charges
Conspiracy to Distribute Controlled Substances (21 U.S.C. §§ 841(a)(1) and 846)
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(2) and (h))
Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release.
19-cr-3631-CAB Indictment - Click HEREDefendants Criminal Case No: 19-cr-3631-CAB
Defendant Number
Name
Hometown
1
Michael Wright
San Diego, CA
2
Rhiannon Hiller
San Diego, CA
3
Michael Branch
San Diego, CA
4
Bryan Carlton
San Diego, CA
5
Charles Moore
San Diego, CA
6
Sara Syverson
San Diego, CA
Summary of Charges
Conspiracy to Distribute Controlled Substances (21 U.S.C. §§ 841(a)(1) and 846)
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(2) and (h))
Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and three years of supervised release.
AGENCIES
Drug Enforcement Administration, Narcotics Task Force
Internal Revenue Service - Criminal Investigation
San Diego County Sheriff’s Department
United States Marshals Service
United States Border Patrol
United States Secret Service
United States Bureau of Alcohol, Tobacco, Firearms and Explosives
Federal Bureau of Prisons
San Diego Police Department
El Cajon Police Department
Chula Vista Police Department
San Diego County Probation Office
San Diego County District Attorney’s Office
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of Enforcement Operations
U.S. Attorney’s Office for the District of Alaska
U.S. Attorney’s Office for the District of Colorado
Drug Dealer Pleads Guilty in Fentanyl Overdose DeathRead the Press Release
Assistant U. S. Attorneys Mark Conover (619) 546-6763 and David P. Finn (619) 546-7342
NEWS RELEASE SUMMARY – September 17, 2019
SAN DIEGO – Uriah Odish pleaded guilty in federal court today, admitting that he supplied fentanyl that led to the fatal overdose of 25-year-old Tiffany Hansen of La Mesa on January 23, 2018.
According to his plea agreement, Odish sold more than 500 grams of what he knew to be fentanyl between 2017 and the day of the fatal overdose. He pleaded guilty before U.S. Magistrate Judge Karen Crawford to Conspiracy to Distribute Fentanyl and is scheduled to be sentenced on December 17, 2019 by U.S. District Judge Barry Ted Moskowitz.
“Every time we have an overdose death, we are going to come looking for the dealer,” said U.S. Attorney Robert Brewer. “We are using every available criminal and civil tool to combat this deadly epidemic and stop these tragic losses.”
“We work every day to save lives and we grieve when we lose a precious soul to drugs,” said DEA Special Agent in Charge Karen Flowers. “We will continue to pursue anyone who deals death. Is that you? If so, we are coming and your time will soon be spent behind bars. We are relentless.”
The United States Attorney’s Office is working closely with the San Diego County District Attorney’s Office, the San Diego County Sheriff’s Office, the Drug Enforcement Administration and our other federal, state and local law enforcement partners to investigate and prosecute cases targeting those who supply drugs in fatal overdose cases.
U.S. Attorney Brewer praised prosecutors Mark Conover and David Finn as well as DEA agents and La Mesa police for their hard work on the case.
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 18-CR-1812-BTM
Uriah Odish Age: 28
SUMMARY OF CHARGES
Conspiracy to Distribute Fentanyl – Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Mandatory minimum 10 years in prison up to life
AGENCY
La Mesa Police Department
U.S. Drug Enforcement Administration, Narcotics Task Force
Utah Man Sentenced to Almost 16 Years in Prison for a Violent Armed Robbery of the Carlsbad Motel 6Read the Press Release
Assistant U. S. Attorneys Brandon J. Kimura (619) 546-9604 and Matthew Brehm (619) 546-8983
NEWS RELEASE SUMMARY – September 16, 2019
SAN DIEGO – Lance Lamont Lavert of Utah was sentenced in federal court today to 189 months in prison for a violent armed robbery in which he terrorized and pistol whipped a Carlsbad Motel 6 clerk.
Lavert was convicted by a federal jury in August of using and brandishing a Smith and Wesson .357 magnum revolver during the robbery and being a felon in possession of a firearm. The jury returned its verdict after hearing the testimony of 11 witnesses and deliberating for approximately two hours.
“What an excruciating experience for these victims, who were hunted and pistol-whipped by a gunman,” said U.S. Attorney Robert Brewer. “This is a fitting sentence for a gunman who did not hesitate to attack. Protecting our community from violent criminals is our number one priority.”
During trial before Chief U.S. District Judge Larry Alan Burns, the prosecution relied on victims from the Motel 6, a Carlsbad police detective, forensic specialists from the San Diego Sheriff’s Department, and federal agents, among others, as witnesses to prove Lavert’s traumatizing crimes.
Witnesses described how, on the morning of July 9, 2018, Lavert and his girlfriend, a co-defendant, entered the Motel 6 on Paseo Del Norte in Carlsbad, California. Lavert approached the counter and asked for a room. When his request was denied due to a lack of identification, Lavert pulled a gun out of his backpack, pointed it at the clerk and her manager, and demanded money. The clerk and manager ran from Lavert but Lavert jumped the counter, kicked in the door of the bathroom where the clerk was hiding, and then brought the clerk, at gunpoint, back to the cash register. Lavert demanded money and pistol-whipped her in the head. After the clerk opened a drawer that held the motel’s cash, Lavert grabbed money from the drawer and ordered the clerk to give him keys to her personal vehicle. Lavert then jumped back over the counter and he and his girlfriend departed.
Two days later, Lavert was arrested trying to enter the United States from Mexico at the San Ysidro Port of Entry. He had the Smith and Wesson .357 magnum revolver concealed in his waistband. The prosecution introduced certified court documents to prove Lavert had several prior felony convictions, including for arson.
Lavert’s co-defendant accepted a resolution before trial.
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, by U.S. Attorney Robert S. Brewer, Jr., 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, labor trafficking and alien smuggling. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood.
DEFENDANT Case Number 18cr3485-LAB
Lance Lamont Lavert Age: 37 Salt Lake City, UT
SUMMARY OF CHARGES
Interference with Commerce by Threats or Violence – Title 18, U.S.C., Section 1951(a)
Maximum penalty: Twenty years in prison and $250,000 fine
Using and Brandishing a Firearm During and in Relation to a Crime of Violence –
Title 18, U.S.C., Section 924(c)
Maximum penalty: Life in prison; a mandatory minimum seven years in prison; and $250,000 fine
Felon in Possession of a Firearm
Title 18, U.S.C., Section 922(g)(1)
Maximum penalty: Ten years in prison and $250,000 fine
AGENCIES
Carlsbad Police Department
San Diego Sheriff’s Department
Homeland Security Investigations
Customs and Border Protection
Mexican Lawyer Sentenced to 96 Months for Laundering Millions of Dollars of Narcotics Proceeds for Sinaloa CartelRead the Press Release
Assistant U. S. Attorney Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – September 16, 2019
SAN DIEGO – Gibran Rodriguez-Mejia, a lawyer from Sinaloa, Mexico, was sentenced in federal court today by U.S. District Judge Roger T. Benitez to eight years in custody for laundering millions of dollars of drug proceeds for the Sinaloa Cartel.
Rodriguez, who has a Mexican law degree with a specialization in business and civil law, pleaded guilty in April, admitting that he operated a currency exchange house that received the proceeds of multi-kilogram quantities of cocaine, methamphetamine and heroin smuggled into the United States by the Sinaloa Cartel. Rodriguez, who was extradited from Mexico to San Diego in September 2018, is the fourth Mexico-based defendant in this case to be sentenced.
In his plea agreement, Rodriguez admitted to laundering $3.5 million in drug proceeds. He coordinated with couriers, primarily located in Southern California, who smuggled the bulk U.S. currency from the United States to Mexico. Rodriguez also admitted that he arranged for currency to be smuggled to an exchange house in Tijuana, Mexico that was owned and operated by co-defendant Cesar Hernandez-Martinez, who has also pleaded guily and is set to be sentenced on December 2, 2019. After the money was converted to Mexican pesos, Rodriguez provided financial accounts in Mexico into which the money was deposited for the benefit of the Mexican-based drug traffickers.
According to court records, in one instance in April 2014, Rodriguez and an individual referred to as “Doc” arranged for a southbound money courier to pick up $100,000 dollars from Philadelphia, Pennsylvania, and transport that sum to Mexico. “Doc” provided the courier’s identity to Rodriguez, who arranged the purchase of a plane ticket for the courier to travel to Philadelphia to make the pick up. When the courier landed, law enforcement conducted surveillance and then seized the $100,000 in cash on the courier’s person and in his hotel room.
“Those who launder proceeds for the world’s most violent drug trafficking organizations will continue to be targeted and brought to justice no matter where they may be located,” said U.S. Attorney Robert Brewer. “We will continue to combat efforts to further the flow of dangerous narcotics across the border into and through Southern California by every means at our disposal.”
In addition to the six defendants in U.S. custody in this case, approximately 20 other individuals have entered guilty pleas and have been sentenced previously in related cases. Those cases have involved individuals based in the United States or who frequently crossed into the United States and served as money couriers, drug couriers and drug stash house operators and who were part of, or related to, the same money laundering and drug trafficking organization.
Three other defendants have previously entered guilty pleas in this case and been sentenced (Omar Ayon-Diaz; Osvaldo Contreras-Arriaga; and Joel Acedo-Ojeda) and two others (Cesar Hernandez-Martinez and Oscar Rodriguez-Guevara) have entered guilty pleas. Hernandez-Martinez entered his plea on April 4, 2019 and will be sentenced on October 21, 2019 at 9:00 a.m. before Judge Benitez and Rodriguez-Guevara entered his plea on August 22, 2019 and will be sentenced on December 2, 2019 at 9:00 a.m., also before Judge Benitez.
The U.S. Attorney’s Office prosecuted this case with the Money Laundering and Asset Recovery Section of the Criminal Division of the Department of Justice in Washington, D.C.
DEFENDANT Case Number 15-cr-950
Gibran Rodriguez-Mejia Age: 31 Culiacan, Sinaloa, Mexico
SUMMARY OF CHARGE
Hernandez-Martinez
Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h).
Maximum Penalties: Twenty years in prison; $500,000 fine or twice the value of the funds involved.
Prior Guilty Pleas and Sentences
Joel Acedo-Ojeda: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); sentenced to 135 months custody and $20,000 fine.
Omar Ayon-Diaz: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); sentenced to 120 months custody and $15,000 fine.
Osvaldo Contreras-Arriaga: Pleaded guilty to Conspiracy to import cocaine, in violation of Title 21, U.S.C., Secs. 952, 960 and 963; sentenced to 132 months custody and $1,000 fine.
Cesar Hernandez-Martinez: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); will be sentenced on October 21, 2019.
Oscar Rodriguez-Guevara: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); will be sentenced on December 2, 2019.
INVESTIGATING AGENCY
Homeland Security Investigations
Former Navy MP Sentenced to 20 years in Prison for Sexual Exploitation and Enticement of a MinorRead the Press Release
Assistant U.S. Attorneys Janet Cabral (619) 546-8715 or Amanda Griffith (619)546-8970
NEWS RELEASE SUMMARY – September 16, 2019
SAN DIEGO – Isaiah Smallwood Jackson, a former Navy military police officer, was sentenced today to 20 years in prison for sex crimes involving a 14-year-old girl.
Jackson was convicted by a federal jury in October 2018 of sexual exploitation of a minor and enticement of a minor. At the time of the offense in September of 2017, Jackson, 21, was on active duty with the U.S. Navy.
The jury found that Jackson created a profile on Spotafriend, a teens-only mobile application designed to allow teens to meet new friends. Because the terms of service for Spotafriend did not allow users over the age of 19 to create an account, Jackson created a user profile listing his name as “Logan” and listing his age as 17. In the description portion of the profile, however, he stated he was actually 21.
Using Spotafriend, Jackson began chatting with a 14-year-old girl from northern San Diego County. Early in their conversation, after making sure the victim knew he was 21, Jackson told the victim “is it bad that I don’t care about your age?” Jackson got the victim’s phone number and continued communicating with her through text messages. In one text Jackson asked the victim, “Okay cuteness, so are you ready to lose your virginity?” Jackson also enticed the victim to take explicit nude photos of herself to send to him.
Jackson got the victim’s home address and convinced her to permit him come to her home, telling her when she expressed that she was nervous, “Please I’m dying to see you” and “Take a leap of faith.” Once at the victim’s home, Jackson engaged in sexual acts with her, outside the home. Shortly after Jackson left, the victim reported the contact to her sister, who called the Oceanside Police Department.
Jackson was arrested by the Oceanside Police Department on September 21, 2017 and charged with state offenses relating to his sexual contact with the victim. At the time of his arrest, Jackson made a statement admitting he had communicated with the victim, and that he had gone to her house and engaged in sexual acts with her.
On October 25, 2017, Jackson was charged in federal court with use of a facility and means of interstate commerce to attempt to induce a minor to engage in unlawful sexual activity. Thereafter, a federal grand jury returned an indictment charging Jackson with sexual exploitation of a minor and enticement of a minor. A federal jury convicted Jackson on all counts after trial.
At sentencing, the victim’s family talked about how the victim has been devastated as a result of the contact with Jackson and is now afraid to be out in public or around men.
In imposing sentence, the Hon. Cynthia A. Bashant told Jackson that the Court “cannot ignore you engaged in clearly predatory conduct” by using a teens-only application to meet the victim and then continuing to communicate with the victim to convince her to let him come to her house.
Following his time in custody, Jackson will be on supervised release for a period of 10 years, during which he will be required to register as a sex offender, will be prohibited from initiating contact with minors or loitering in places primarily frequented by minors, and will be prohibited from accessing the internet except on devices where his use can be monitored by U.S. Probation Officers.
This case serves as a reminder for parents of the dangers posed by the internet, and the need for teenagers and their parents to maintain open lines of communication regarding online activity. Defendant’s abuse of a seemingly safe chat application for teens allowed Jackson access to this 14-year-old victim that he would not otherwise have had. From the time Jackson began chatting with the victim, until the time she reported the sexual contact to the police, just over 24 hours elapsed. Parents are urged to educate themselves and discuss these dangers with their children.
DEFENDANT Criminal Case No. 18cr1805-BAS
Isaiah Smallwood Jackson Age: 23 Vista, CA
SUMMARY OF CHARGE
- Count 1 – Title 18, United States Code, Section 2251(a), Sexual Exploitation of a Minor
- Count 2 – Title 18, United States Code, Section 2422(b) – Enticement of a Minor
- Criminal forfeiture – Title 18, United States Code, Section 2243 and 2428
Maximum penalties:
- Count 1 – 30 years in prison, with a minimum mandatory 15 years in prison
- Count 2 – Life in prison, with a minimum mandatory 10 years in prison
- As to all Counts, $250,000 fine
INVESTIGATING AGENCIES
Oceanside Police Department
Dealer Admits Selling Deadly Fentanyl Laced PillsRead the Press Release
Sherri Walker Hobson (619) 546-6986
NEWS RELEASE SUMMARY – September 16, 2019
SAN DIEGO – Christopher James Stracuzzi entered a guilty plea in federal court today, admitting that he distributed fentanyl that resulted in the death of a San Diego man. Stracuzzi will be sentenced on December 2, 2019 at 9 a.m., before U.S. District Judge Thomas J. Whelan.
According to court documents, on July 18, 2018, at approximately 8:43 p.m., the San Diego Police Department received a 911 call about an unconscious male passed out on the floor in his apartment. His roommate attempted to perform CPR even though she was groggy from have taken a pill herself. Paramedics arrived on scene and unsuccessfully attempted resuscitation. The man was pronounced dead at 9:12 p.m.
The roommate of the deceased man told investigators that Stracuzzi sold the deceased 12 tablets that the deceased believed to be oxycodone pills. Both the roommate and the deceased man took a pill. After learning from the Medical Examiner's Office that her roommate died of a fentanyl overdose, the roommate suspected that the pills they had taken that fateful night were not oxycodone, but were in fact, counterfeit pills containing fentanyl. When the DEA Southwest Regional Laboratory, tested the remaining 10 tablets, chemists determined they contained fentany1.
The Drug Enforcement Administration, Homeland Security Investigations, San Diego Police Department, Federal Bureau of Investigation and California State Department of Health Care Services, along with the San Diego District Attorney’s Office and the U.S. Attorney’s Office, are part of a team that investigates and prosecutes fatal overdose cases.
“Dealers beware: You will be held responsible for the deaths of your customers,” said U.S. Attorney Robert “But we can’t reverse the tragedy of the shattered lives of the victims and their families. I cannot say this any more strongly or directly: Don’t take these black market pills. You may pay the ultimate price for this terrible mistake.”
“Tragic cases of overdose deaths caused by fentanyl will leave scars on families in our communities for decades to come,” said HSI San Diego SAC Dave Shaw. “HSI is committed to working with our partners to remove this scourge from our streets. We urge everyone to take the time to learn about these deadly drugs and take the steps necessary to protect their families and loved ones.”
“We are living in a world where drug cartels are getting rich from making counterfeit pills that contain fentanyl and we are paying a heavy price, in blood,” said DEA Special Agent in Charge Karen Flowers. “There is no quality control or FDA oversight. If you didn’t get that pill directly from a pharmacy with a prescription in your name, you won’t be able to tell if the pill is real or counterfeit. Even the experts can’t tell until it is examined in a laboratory. When you crush or swallow that blue pill that looks like a 30 mg oxycodone tablet, you are risking your life. I’ll say it again, your dealer, BFF, lover, or classmate may become your murderer and the medical examiner your personal physician. Life is precious. Don’t gamble yours away for a quick high that sends you home from the party in a body bag.”
These case is being prosecuted by Assistant United States Attorney Sherri Walker Hobson.
DEFENDANT Case Number 19CR0368W
Christopher James Stracuzzi San Diego
SUMMARY OF CHARGES
Title 21 U.S.C. §§ 841(a) & 841(b)(1)(C) Distribution of Fentanyl Resulting in Death
Title 18 U.S.C. § 2 Aiding and Abetting
Maximum penalty: Life in custody, with a mandatory minimum penalty of 20 years
AGENCIES
Drug Enforcement Administration
Homeland Security Investigations
San Diego Sheriff’s Office
San Diego Police Department
Federal Bureau of Investigation
Department of Health Care Services
Senegalese National Admits Impersonating Deceased U.S. Citizen Since 1988Read the Press Release
Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924
NEWS RELEASE SUMMARY – September 12, 2019
SAN DIEGO – Almamy Baba Ly pleaded guilty in federal court today to identity theft charges, admitting that he misused the identity of a deceased American citizen for 31 years in order to obtain identification documents and thousands of dollars in federal, state and local government benefits.
During a hearing before U.S. Magistrate Judge Jill L. Burkhardt, Ly acknowledged that in 1988 he assumed the identity of Lyle Lindsey, a native San Diegan and son of a military veteran, who died in a tragic automobile accident as a toddler in 1957. Ly admitted that he was born in Senegal, that he was without legal status to reside in the United States, and that he used an altered copy of Lindsey’s birth certificate to apply first for a Social Security number and then for a California Identification Card and Driver’s License. Over the next 31 years, Ly was convicted of numerous crimes, including drug sales and robbery, under Lyle Lindsey’s identity.
Ly also pleaded guilty to Receiving Stolen Public Money, admitting that from 2012 until 2019, he used Lindsey’s identity to apply for and receive over $80,000 in federal student loans and Pell Grants. In his plea agreement, Ly also admitted to applying for CalFresh / Supplemental Nutrition Assistance Program (SNAP) benefits in 2017 as Lindsey, and to thereafter receiving thousands of dollars in benefits that he was not legally entitled to receive.
In July 2019, United States Border Patrol agents simultaneously served a search warrant and arrested Ly at his residence in La Mesa, California. During the search, agents seized a recently issued Senegalese national identification card with Ly’s true name and date of birth. The arrest and search warrant were the culmination of a lengthy investigation by the United States Border Patrol, with the assistance of the California Department of Motor Vehicles, the Department of State, and the United States Embassy and Homeland Security Investigations in Dakar, Senegal.
“This was an especially sophisticated and devious fraud that victimized U.S. taxpayers for decades and forced a family to revisit a traumatic loss,” said U.S. Attorney Robert Brewer. “Finding out that someone is committing crimes in the name of a child who was lost many years ago brings unacceptable anxiety to his survivors. Identity thieves target hundreds of thousands of deceased Americans every year, but I’m proud to say that because of the efforts of federal agents and prosecutor Jeffrey Hill, one of the most egregious and enduring violators has been stopped.”
On behalf of the United States Border Patrol, San Diego Chief Patrol Agent Douglas E. Harrison stated: “I am grateful and proud of the tenacity, persistence, and hard work that our agents and law enforcement partners have demonstrated over the past several months, which have resulted in this conviction.”
As a part of his plea agreement, Ly agreed to make full restitution to the United States Department of Education and to the County of San Diego for the $88,551 in government benefits that he fraudulently obtained by his crimes. Ly faces up to 55 years in federal prison and a fine of up to $1 million at his sentencing before U.S. District Judge Anthony J. Battaglia on December 2, 2019.
DEFENDANT Case Number 19-cr-2864-AJB
Almamy Baba Ly La Mesa, California.
SUMMARY OF CHARGES
Unlawful Production of an Identification Document – Title 18, U.S.C., Section 1028(a)(1)
Maximum penalty: Fifteen years in prison, $250,000 fine
Theft of Public Property – Title 18, U.S.C., Section 641
Maximum penalty: Ten years in prison, $721,817.70 fine, restitution
AGENCIES
United States Border Patrol – Sector Intelligence Unit / Chula Vista Station
United States Homeland Security Investigations
California Department of Motor Vehicles Investigations Division
Bureau of Public Assistance Investigations, County of San Diego
Church Leaders Indicted in Forced Labor ConspiracyRead the Press Release
Assistant U. S. Attorney Christopher P. Tenorio (619) 546-8413
IVM Indictment - Click HEREEl CENTRO – A dozen leaders of Imperial Valley Ministries, including the former pastor, are charged in an indictment unsealed today with subjecting dozens of mostly homeless people to forced labor, coercing them to surrender welfare benefits and compelling them to panhandle up to nine hours a day, six days a week, for the financial benefit of the church leaders.
The defendants were arrested today in El Centro, San Diego and Brownsville, Texas and charged with conspiracy, forced labor, document servitude and benefits fraud. The local defendants are scheduled to be arraigned in federal court in El Centro today at 1:30 p.m. before U.S. Magistrate Judge Ruth Bermudez Montenegro.
“The indictment alleges an appalling abuse of power by church officials who preyed on vulnerable homeless people with promises of a warm bed and meals,” said U.S. Attorney Robert Brewer. “These victims were held captive, stripped of their humble financial means, their identification, their freedom and their dignity.”
“Human trafficking robs victims of their most basic human rights,” said FBI Special Agent-In-Charge Scott Brunner. “Victims of human trafficking are often unseen by society, left pleading in silence. Today, the FBI is proud to break up the labor trafficking alleged to have been committed by the leaders of Imperial Valley Ministries in Imperial Valley and San Diego. This investigation is an example of the tireless and dedicated work undertaken by FBI agents and our partners at the El Centro Police Department in combating this heinous crime.”
Imperial Valley Ministries, or IVM, operates a non-denominational church headquartered in El Centro, and has opened approximately 30 affiliate churches throughout the United States and Mexico, including locations in Los Angeles, Santa Ana and San Jose in California; in Las Vegas, Nevada; Phoenix, Arizona; and Brownsville, Texas. IVM’s stated purpose is to “restore” drug addicts at faith-based rehabilitation group homes and raise money to open churches in other cities to do the same.
In addition to the church and main office, IVM owned and operated three group homes the El Centro area, plus one in Calexico and one in Chula Vista. Many victims were recruited from outside of El Centro, including San Diego, and as far away as Texas. IVM leaders allegedly induced many to participate with offers of free food and shelter with the false promise that victims would be provided with resources to eventually return home.
According to the indictment, defendants checked in the victims at the IVM group homes, where they were required to sign agreements to adhere to rules. Many victims, including many who did not require drug rehabilitation services, claimed they were later held at IVM properties against their will.
The indictment alleges that church leaders locked victims inside group homes with deadbolt locks; confiscated identification documents such as driver’s licenses, passports, immigration papers and identification cards, in order to prevent victims from escaping; stole victims’ welfare benefits; and required adherence to rules such as, “you are not to discuss things of the world” and “the only thing to be read is the holy bible” and “if any of the rules are broken there will be discipline.”
Windows were nailed shut at some group home locations, leading a desperate 17-year-old victim to break a window, escape, and run to a neighboring property to call police. The teen was brought to the El Centro Medical Center for cuts sustained from the escape.
Defendants are alleged to have extorted the surrender of participants’ Electronic Benefits Transfer (EBT) cards obtained through the Supplemental Nutrition Assistance Program (SNAP), administered by the CalFresh Program, by using actual and threatened fear of economic loss. The IVM leaders allegedly then used the SNAP benefits for improper purposes, including providing them to ineligible persons, and improperly instructing the intended recipients to not seek or accept outside employment.
Leaders of IVM, including former Pastor Victor Gonzalez, refused to return the confiscated EBT cards and personal property to participants who asked to leave. IVM members also allegedly used various means to coerce participants to stay and continue panhandling for IVM’s financial benefit by saying their children would be taken away if they left, that they would not receive transportation home, or that loved ones had rejected them and they must stay because “only God” loved them. Punishments for violations of home rules, including talking about the outside world, allegedly included the withholding of food.
In another instance, church leaders allegedly refused to allow a diabetic victim to obtain medicine, medical supplies and even food in response to low blood sugar. She was able to escape and get help.
All of the identified victims are now free. Victim specialists have been on standby to provide immediate assistance to any additional victims we find in order to provide them with shelter, transportation or any necessary support services.
“This is the most significant labor trafficking prosecution in this district in many years,” Brewer said. “These cases are few and far between because many victims live in captivity and fear, powerless to report the crimes against them. My office wants victims to know that we are here to help you.”
Brewer praised the FBI and prosecutor Christopher Tenorio for their excellent work on the case. And he expressed appreciation for the assistance of the Imperial County District Attorney’s Office, the El Centro Police Department, the Imperial County Sheriff’s Office, the U.S. Marshals Service, the U.S. Border Patrol and Imperial County Social Services, for their assistance with this case.
To report suspicions of labor trafficking, please contact the FBI at 1-800-CALLFBI (225-5324) or https://tips.fbi.gov/. If you know someone who is a victim of human trafficking, resources can be found at National Human Trafficking Hotline – 1-888-373-7888.
Assistant U.S. Attorney Christopher Tenorio is prosecuting the case with assistance from the Department of Justice Civil Rights Division’s Human Trafficking Prosecution Unit.
IVM Presentation - Click HERE
DEFENDANTS Case Number 19CR3255-BTM Victor Gonzalez Age: 40 Brownsville, TX Susan Christine Leyva
(aka Susan Christine Gonzalez,
Christy Gonzalez) Age: 39 Brownsville, TX Jose “Joe” Anthony Diaz Age: 39 Brownsville, TX Mercedes Gonzales (aka Mercy Diaz) Age: 37 Brownsville, TX Arnoldo Bugarin Age: 47 El Centro, CA Azucena Torres (aka Susana Bugarin) Age: 43 El Centro, CA Sergio Partida Age: 32 El Centro, CA Ana Karen Robles-Ortiz (aka Karen Partida) Age: 29 El Centro, CA Jose “Chito” Morales Age: 47 San Diego, CA Jose Demara Flores (aka Joe Flores) Age: 52 Brownsville, TX Jose Gaytan Age: 47 El Centro, CA Sonia Murillo Age: 51 El Centro, CASUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fineForced Labor – Title 18, U.S.C., Section 1589
Maximum penalty: Twenty years in prison and $250,000 fineDocument Servitude – Title 18, U.S.C., Section 1592
Maximum penalty: Twenty years in prison and $250,000 fineFood Stamp Act (Benefits Fraud) – Title 7, U.S.C., Section 2024(b)
Maximum penalty: Twenty years in prison and $250,000 fine (If the benefits were $5,000 or more)AGENCY
Federal Bureau of Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Wells Fargo Bank Personal Banker Pleads Guilty to Money Laundering and Bank FraudRead the Press Release
Assistant U. S. Attorney Blanca Quintero (619) 546-7118
NEWS RELEASE SUMMARY – September 9, 2019
SAN DIEGO – Leopoldo Lara Aguilera, a former Wells Fargo personal banker, pleaded guilty in federal court today to money laundering conspiracy and bank fraud.
Aguilera was arrested by FBI agents on May 2, 2019, for his participation in an international money laundering organization based in Tijuana, Mexico which operated primarily in San Diego.
According to the plea agreement and other public records, Aguilera abused his position of trust as a personal banker with Wells Fargo Bank by opening bank accounts with false identities and wire transferring millions of dollars to Mexico. Aguilera conducted these transactions in exchange for thousands of dollars in cash payments from the criminal organization. The FBI’s investigation linked these funds to the sale of narcotics, specifically the sale of multi-kilogram amounts of fentanyl in the Midwest.
Aguilera pleaded guilty to opening twenty-six bank accounts for the money laundering organization, including eleven that were created by Aguilera using fictitious identities. Specifically, Aguilera used his position as a personal banker with Wells Fargo Bank to knowingly enter false names, passport numbers, and dates of birth on the fictitious bank accounts. These eleven fictitious accounts alone were used by the criminal organization to wire transfer a total of $3.8 million to Mexico, the vast majority of those wire transfers were conducted by Aguilera himself. Aguilera's use of these fictitious accounts were identified by Wells Fargo and brought to the attention of the FBI.
In conjunction with Aguilera’s arrest, the FBI identified and seized seventeen bank accounts that belonged to the money laundering organization containing in excess of $230,000.
The case was investigated by the FBI San Diego Cross Border Violence Task Force and the U.S. Attorney’s Office for the Southern District of California. The investigation was assisted by the participation of Wells Fargo Bank’s internal investigators in Arizona and California. This case is being prosecuted by Assistant U.S. Attorney Blanca Quintero.
DEFENDANT Case Number: 19-CR-1955-BAS
Leopoldo Lara Aguilera Age: 57 Tijuana, Mexico
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Sections 1956(h) and 1957
Maximum penalties: 20 years’ imprisonment and $500,000 fineBank Fraud – Title 18 U.S.C., Section 1344
Maximum Penalties: 30 years’ imprisonment and $1,000,000 fineAGENCIES
Federal Bureau of Investigation’s San Diego Cross Border Violence Task Force
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Las Vegas Businessman Admits Trafficking More than $1 Million in Counterfeit ElectronicsRead the Press Release
Assistant U.S. Attorney Nicholas W. Pilchak (619) 546-9709
NEWS RELEASE SUMMARY – September 5, 2019
SAN DIEGO – A Las Vegas business owner admitted today to running a years-long conspiracy to import counterfeit electronics from China into the United States.
During a hearing this morning before U.S. Magistrate Judge Barbara L. Major, Saad Ahmed pleaded guilty to Conspiracy to Traffic in Counterfeit Goods.
Ahmed, 32, owns and operates PhonePartsUSA, a Las Vegas, Nevada-based company that sells cellular telephone parts and other electronics throughout the United States—including to customers in San Diego. As part of his plea agreement, Ahmed acknowledged conspiring with a variety of individuals in China to bring counterfeit cell phone parts and accessories from China to the United States. The conspiracy stretched back to at least September 2012, according to court documents.
PhonePartsUSA trafficked $1,499,999 worth of counterfeit goods during this period, per Ahmed’s plea agreement. The phony merchandise bore trademarks from Samsung, Apple and the electronic quality certification company UL, but were actually inauthentic copies. The charges against Ahmed also allege that he grossly undervalued his international imports to deflect U.S. Customs’ attention from his shipments.
Ahmed agreed to pay restitution to the three trademark holders in an amount totaling $269,681, which constituted the net proceeds received by Ahmed’s business from trafficking in the counterfeit merchandise. Ahmed also agreed not to contest the forfeiture of 4,453 cell phone parts and accessories seized from PhonePartsUSA as part of a search by Homeland Security Investigations last summer.
“Counterfeit goods confuse and deceive the public, damage legitimate manufacturers, and can even pose a serious risk to consumers’ safety,” said U.S. Attorney Robert Brewer. “This office and our agency partners will aggressively prosecute who seeks to make a quick illegal profit at the public’s expense.”
“Trafficking counterfeit merchandise hurts legitimate businesses and poses a significant public safety risk as these individuals prey on unsuspecting consumers who believe they are getting name brand products at a reduced price,” said Francisco Burrola, Special Agent in Charge, Homeland Security Investigations (Nevada), U.S. Immigration and Customs Enforcement. “HSI Nevada agents are committed to conducting intellectual property theft investigations that not only protect the companies who have trademarked licensed products, but also the consumers who believe they are buying authentic and/or safe products.”
Ahmed is scheduled to be sentenced on December 9, 2019, before U.S. District Judge Thomas Whelan.
DEFENDANT Case Number 19-cr-3401-W
Saad Ahmed Las Vegas, NV Age: 32
SUMMARY OF CHARGES
Conspiracy to Traffic in Counterfeit Goods – Title 18, U.S.C., Sections 371 & 2320(a)
Maximum penalty: Five years in prison, $250,000 fine (or twice the pecuniary gain or loss), restitution and forfeiture.
AGENCY
Homeland Security Investigations
U.S. Customs & Border Protection
Professional Skateboarder Pleads Guilty to Federal Drug Trafficking ChargesRead the Press Release
Assistant U. S. Attorney Matthew Brehm (619) 546-8983
SAN DIEGO – Robert Lorifice, a North County professional skateboarder, and his then-girlfriend Elizabeth Alexandra Landis, pleaded guilty in federal court today to possessing methamphetamine and heroin with the intent to distribute.
Lorifice and Landis admitted to possessing the methamphetamine, heroin and other controlled substances with the intent to distribute them and that Lorifice, with Landis’ assistance, coordinated deals utilizing phone calls, text messages and communication through other apps; and they admitted to selling methamphetamine, heroin and other controlled substances for money.
For example, on September 7, 2018, Landis sent a text message that read: “I have bomb dark [heroin] you should try and I got [narcotics] and even some really bomb blue [methamphetamine] - the real deal. And bomb kush [marijuana] too. If u want to stop by here on ur way up let me know. I am gonna be heading down to sports arena a minute so if u aren’t leaving just yet I can swing by there.”
Lorifice and Landis admitted in their plea agreements that, when a search warrant was executed at Lorifice’s house in Encintitas on September 26, 2018, he did not answer the door and instead disposed of an unknown quantity of blue methamphetamine and other drugs down the toilet and sink in his master bedroom’s bathroom.
During the search of Lorifice’s residence, investigators found Lorifice and Landis in the master bedroom along with approximately 193 grams of methamphetamine, 231.6 grams of heroin, Roxicodone pills, more than 800 Xanax pills, a yellow powdery substance, marijuana, psilocybin mushrooms, a digital scale, packaging materials, three cell phones and approximately $16,824.
Lorifice and Landis further admitted that, on December 14, 2018, while Lorifice was out on bail on a state case, investigators executed a second search warrant at his same residence in Encinitas and Lorifice attempted to flush a tennis ball-sized chunk of methamphetamine down the toilet in the master bedroom’s bathroom. Again, Landis was also found in the master bedroom with Lorifice along with approximately 31 grams of black tar heroin, 18 grams of methamphetamine, $10,926 in currency, a digital scale and various pills.
Lorifice and Landis also admitted the $16,824 and the $10,926 seized during the search warrants were proceeds from drug trafficking and was also currency they intended to use to facilitate their drug trafficking activities.
Lorifice and Landis are schedule to be sentenced on November 22, 2019 at 9 a.m. by U.S. District Judge Dana M. Sabraw.
“It’s unfortunate that a public figure who is admired by kids chose to travel down this road,” said U.S. Attorney Robert Brewer. “We have a very big methamphetamine problem in our county right now, plus a nationwide opioid epidemic is raging, and we are going after anyone who sells the poison that is destroying lives and families and communities.”
"The successful conclusion of this case serves as a strong warning to drug dealers who operate on the streets of San Diego," said FBI Special Agent In Charge Scott Brunner. "Day in and day out, the FBI and our law enforcement partners work together in order to keep deadly narcotics off the streets and hold drug dealers accountable. This is an example of the important work we do with our partners at the San Diego Sheriff’s Department. "
“The San Diego Sheriff's Department embraces the collaborative efforts between local law enforcement; specifically the Sheriff's North Coastal Street Narcotic and Gang Team, and our federal partners, in ensuring that San Diego County continues to be the safest urban county in the nation,” said Sheriff’s Lieutenant James Cady.
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, by U.S. Attorney Robert Brewer, 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.
DEFENDANTS Case Number 19cr1211-DMS
Robert Lorifice Age: 31 Encinitas, CA
Elizabeth Alexandra Landis Age: 27 Encinitas, CA
SUMMARY OF CHARGES AGAINST LORIFICE
Possession of methamphetamine with intent to distribute – Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Forty years in prison and $5 million fine
Possession of heroin with intent to distribute - Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Forty years in prison and $5 million fine
AGENCY
San Diego Sheriff’s Department
Federal Bureau of Investigation
North County Gang Task Force
North Coastal Street Narcotic and Gang Team
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Man Charged in Deaths of Three Smuggled Chinese MigrantsRead the Press Release
Assistant U. S. Attorney Michael G. Wheat (619) 546-8437
NEWS RELEASE SUMMARY – September 3, 2019
SAN DIEGO – Neil Edwin Valera, a U.S. citizen who resides in Tijuana, was arraigned in federal court today in connection with the deaths of three Chinese migrants, including a mother and her 15-year-old son, who were found in the trunk of Valera’s BMW two days after he crossed into the United States through the San Ysidro Port of Entry in the same car.
Valera, a truck driver from El Paso, Texas, was taken into custody at the downtown bus station on Saturday. He was charged via complaint with Encouraging Aliens to Enter Resulting in Death and Bringing in Aliens without Presentation for Financial Gain.
On August 11, 2019, at 4:54 p.m., San Diego police received an emergency 911 call from a person reporting a foul odor and blood dripping from a suspicious vehicle with Texas license plates parked near the 2100 block of Jaime Avenue in San Diego.
San Diego police officers discovered a 1999 silver BMW with a Texas license plate. The officers lifted the trunk and found what initially appeared to be two deceased Asian females. Homicide detectives found an additional victim, an Asian male, pressed up against the rear wall of the trunk. A witness said the car was first noticed two days earlier and no one was seen coming or going.
Video recordings show the same car crossing into the United States from Mexico on August 9, 2019, at the San Ysidro port of entry at 3:14 p.m. According to the complaint, the driver was Valera, the registered owner of the vehicle. Valera used his Sentri card to enter into the U.S. After that day, Valera only crossed into the United States on foot, through pedestrian lanes at the San Ysidro Port of Entry.
“These tragic cases are grim reminders that attempting to cross into the United States illegally in the trunk of a car – and putting your faith, hope and future in the hands of smugglers – is extremely dangerous,” said U.S. Attorney Robert Brewer. “My office will aggressively prosecute those who smuggle others into the United States for financial gain, place vulnerable people in grave danger, and recklessly cause deaths.”
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, by U.S. Attorney Robert Brewer, 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.
DEFENDANT Case Number 19mj3525
Neil Edwin Valera Age: 50 Tijuana
SUMMARY OF CHARGES
Encouraging Aliens to Enter Resulting in Death – Title 8, U.S.C., Section 1324(a)(1)(A)(vi) and (B)(iv)
Maximum penalty: Life in prison or death and $250,000 fine
Bringing in Aliens without Presentation for Financial Gain – Title 8, U.S.C., Section 1324(a)(2)(B)(ii)
Maximum penalty: Mandatory minimum three years, up to 15 years in prison
AGENCY
San Diego Police Department
Homeland Security Investigations
U.S. Customs and Border Protection, Office of Field Operations
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
San Diego Man Convicted of Child Pornography OffensesRead the Press Release
Assistant U.S. Attorneys Amanda Griffith (619) 546-8970 or Janet Cabral (619) 546-8715
NEWS RELEASE SUMMARY – August 30, 2019
SAN DIEGO – Carsten Igor Rosenow was convicted by a federal jury today of attempted sexual exploitation of a child and possession of child pornography.
Rosenow, a former chief marketing officer for a San Diego tech company, came to the attention of law enforcement when the FBI received information that Rosenow was communicating through Facebook with what appeared to be minor females living in the Philippines, using an account under the name “Carlos Senta.” The FBI also uncovered evidence that Rosenow traveled regularly to the Philippines, and appeared to be engaging in sexual activities with minors.
The FBI was alerted that Rosenow was scheduled to return to the United States from the Philippines in June of 2017, and he was arrested by FBI agents when he arrived at the airport in San Diego on June 21, 2017. Rosenow’s baggage and residence were searched pursuant to search warrants. According to evidence presented at trial, three devices seized from Rosenow’s luggage contained videos, produced by Rosenow while in the Philippines, showing Rosenow engaging in sexual acts with minor females. Additional devices seized from his residence also contained visual depictions of Rosenow engaged in sexual acts with minors while in the Philippines.
Facebook records introduced into evidence at trial established that prior to meeting with one of the girls, Rosenow was told she was 12 years old. While engaged in the sexual activity with the girl, she told Rosenow she was 15. Rosenow also admitted as part of the evidence at trial that he knew that another video, which showed him engaged in sexual acts with three minor females, one of whom was a prepubescent female, was produced by him while in the Philippines
Rosenow testified at trial and admitted that while he was abroad in the Philippines for work, he had sex with girls who he knew were minors, which is defined under federal law as anyone under the age of 18. The jury found the defendant guilty of both charges. The court set sentencing for December 2, 2019.
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section of the U.S. Attorney’s Office for the Southern District of California. Formed in 2019, by U.S. Attorney Robert S. Brewer, Jr., 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.
DEFENDANT Criminal Case No. 17cr3430-WQH
Carsten Igor Rosenow Age: 55 San Diego, CA
SUMMARY OF CHARGE
- Count One – Title 18, United States Code, Section 2251(c), Attempted Sexual Exploitation of a Child – Production of Child Pornography
- Count Two – Title 18, United States Code, Section 2252(a)(4)(B), Possession of Images of Minors Engaged in Sexually Explicit Conduct
Maximum penalties:
- Count One - 30 years in prison, with a mandatory minimum 15 years in prison
- Count Two – 20 years in prison
- As to all Counts, $250,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
On Overdose Awareness Day: A Mother’s Grief, a Top Prosecutor’s Dire Warning and Photos of Lives Lost in the Opioid EpidemicRead the Press Release
Assistant U.S. Attorneys Cindy Cipriani (619) 546-9608 and Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – August 30, 2019
SAN DIEGO – Keri Cuppage is on a scuba diving trip to Florida this Labor Day weekend to visit her daughter.
But it’s not what you think.
Her daughter, Tiffany Hansen, who died in San Diego on January 23, 2018 at age 26 of a fentanyl overdose, is resting at the bottom of the ocean she dearly loved. Her ashes were used to create a sea turtle sculpture which was placed in a manmade underwater memorial reef about 3 miles east of Key Biscayne near Miami, Florida.
Cuppage, who lives in San Diego, chose to commemorate Opioid Awareness Day, which is tomorrow, by descending 40 feet to the ocean floor to see that turtle and to honor, remember and grieve the young woman whose nickname was “Princess” and whose passions were the beach, mermaids and all things Disney, and whose death shattered her mother’s world. Cuppage managed to beat the hurricane that’s heading toward Miami by doing the dive a day earlier than planned.
“She brought love, joy and silliness; spreading infectious laughter into everyone’s life,” Cuppage wrote in an email about her daughter. “She was deeply loved by her family and friends. She is missed every day.” Cuppage said she plans to spend every “Opioid Awareness Day” like this.
In conjunction with Overdose Awareness Day on August 31, 2019, U.S. Attorney Robert Brewer is again warning the community about the dangers of opioids and fentanyl-laced drugs and sharing photos of numerous victims whose lives were cut short due to overdose.
They include an avid fisherman and father of three girls. A gifted soccer player. A young man who loved riding dirt bikes, listening to music and going to concerts. And others. All under 50. All died of opioid overdoses – mostly fentanyl.
“We are losing far too many San Diegans to a drug that many don’t even know they are taking,” Brewer said. “Counterfeit oxycodone pills – known as blue M-30s – have stolen the lives of husbands and wives, sons and daughters, and even a toddler who swallowed a pill that fell out of his dad’s pocket. Cocaine laced with fentanyl is another danger: It nearly killed two college students who had no idea they were ingesting an opioid 50 times stronger than heroin. Please understand the huge risks of street and ‘dark web’ drugs – they can kill you! Be smart, don’t take that risk.”
Addiction and overdose cause tremendous suffering not only to the victim but to surviving family members, friends and communities.
Erica Sanfillipo, a 27-year-old registered nurse and mother of a young child, became addicted while trying to manage pain associated with two car accidents in a six-month period. She died of an opioid overdose on June 28, 2015.
Her mother, Patricia Gary, wrote in an email that Erica’s addiction “quickly became something not only she was battling, but our entire family as well. See, this disease has no barriers nor does it discriminate. Eventually all the things that she loved and that were important to her no longer mattered – all that mattered was the next fix. In the end, Erica not only paid the ultimate price, but so did her child, parents, brother, aunts, uncles and many close friends! WE WERE ALL IMPACTED BY ADDICTION!”
Fentanyl-related deaths are rapidly climbing to unprecedented levels. The San Diego County Medical Examiner’s Office reports 50 confirmed fentanyl-related overdose deaths so far this year, plus another 28 suspected but yet-to-be confirmed cases with four months remaining in the year. Should this trend continue for the remainder of 2019, the death toll could potentially reach 130, which would amount to a 47 percent increase over last year’s total of 90 deaths, and a staggering 787 percent hike over five years ago when there were 15. The victims are overwhelmingly male, and the average age is 36, with the youngest 18 and the oldest 66.
Fentanyl is 30-50 times more powerful than heroin and so dangerous that in its purest form, even a tiny amount can be deadly. According to law enforcement reports, the price of fentanyl in 2019 – whether in powder form and pill form – is declining, meaning that availability of both forms are is increasing in our community.
The U.S. Attorney’s Office and District Attorney’s Office are working closely with the Medical Examiner’s Office and its law enforcement partners on overdose cases involving fentanyl to trace the origin of these deadly substances and build cases against suppliers.
Under federal law, sellers and suppliers of drugs that cause death or serious bodily injury face a very stiff penalty -- a 20-year mandatory minimum sentence. So far, the U.S. Attorney’s Office has charged about a dozen alleged dealers with that 20-year mandatory minimum offense.
In one such case, the defendant in U.S. v. Maxwell Gaffney (17CR3330-MMA) was swiftly convicted after a week-long trial and is now awaiting imposition of what could be at least a 20-year mandatory minimum sentence. In another recent case, defendant Corey Green (18CR2249-AJB) entered a guilty plea to heroin distribution charges and acknowledged that a death ensued; he was sentenced to 151 months in custody.
“These death investigations cannot bring back beloved family members but they do get deadly drugs off the street quickly,” Brewer said. “Moreover, the ensuing prosecutions send a clear message that traffickers will face serious repercussions. We hope these cases also bring a measure of comfort, peace and justice to beloved family members who face this devastating loss, with no option but to grieve for what might have been.”
In addition to prosecuting opioid dealers and smugglers, the U.S. Attorney's office raises awareness of harm reduction, prevention and education efforts, through the district's newly named Opioid Coordinators Larry Casper and Dylan Aste, and Outreach Director Cindy Cipriani, who Co-Chairs the San Diego Prescription Drug Abuse Task Force. The U.S. Attorney’s Office has implemented a Fentanyl Forum and a Fentanyl Working Group, both of which offer training and enable law enforcement partners to easily share knowledge and best practices. The office is also co-sponsoring the Western States Opioid Summit in San Diego on Nov. 7-8, which will bring multiple disciplines together to address every aspect of the Opioid Crisis. U.S. Surgeon General Vice Admiral Jerome Adams will be a featured speaker, along with leaders from the prevention, public health, treatment and law enforcement communities.
U.S. Attorney Brewer urged those struggling with substance use disorder and their family members to talk to a doctor or pharmacist about Naloxone, which can reverse an opioid overdose.
If you encounter fentanyl in the form of counterfeit pills or bulk powder, please reach out to law enforcement and/or refer to resources listed at https://www.sandiegorxabusetaskforce.org/community-resources
To learn how to assist a person who is overdosing, including how to administer Naloxone, please see https://www.youtube.com/watch?v=nurz9qPGKws&feature=youtu.be.
The U.S. Attorney’s Office is prosecuting several cases associated with victims listed below, including the alleged dealer who provided fentanyl to Tiffany Hansen, resulting in her death. That case, U.S. v. Uriah Odish, 18-CR-1812, is scheduled for trial on October 28. Please scroll down to see photos and details.
*Family members of victims who are willing to do interviews are indicated below.
Third Roommate Pleads Guilty to Inside Job Bank Heist and Admits to Two Other Bank RobberiesRead the Press Release
Assistant U. S. Attorney Matthew Brehm (619) 546-8983
NEWS RELEASE SUMMARY – August 27, 2019
SAN DIEGO – Aldo De Jesus Gomez today became the last of three roommates to plead guilty to bank robbery and other related charges, admitting that in one instance, the trio staged a robbery at a San Diego Bank where one of the roomates worked as a teller.
Gomez pleaded guilty in federal court before U.S. Magistrate Judge Jill Burkhardt to an information charging him with Bank Robbery and Entering a Bank to Commit Larceny. Gomez and his roommates were convicted of stealing $23,070 from the Chase Bank in Mission Valley, where they pulled off an inside job with the roommate as teller. Gomez is scheduled to be sentenced on November 19 at 10:30 a.m. by U.S. District Judge Barry Ted Moskowitz.
Gomez admitted in his plea agreement that he, Jesus Ramon Garcia-Lopez, and Joe Anthony Mares researched, planned, and entered into an agreement to steal money from the Chase Bank located at 5111 Mission Center Road in San Diego, where Garcia was a teller. They recruited a fourth individual, known to them as “Spill Will,” to serve as the getaway driver. Pursuant to their plan, Mares wrote a demand note, which read, “Give me all the money in both top and bottom drawer or someone in the lobby dies give me 30 mins before alerting anyone or I will be back and shoot people right away,” and provided it along with his clothing to Gomez.
On June 6, 2018, at approximately 10:00 a.m., Gomez entered the Chase Bank branch wearing Mares’ clothing, approached Garcia’s teller window, and passed him the demand note Mares had written, all pursuant to the plan. Garcia took the demand note and passed Gomez approximately $23,070 in cash. Gomez took the cash, left the bank, and was driven away by Spill Will. Afterwards, Gomez admitted he provided Mares and Garcia with a portion of the stolen cash and kept more than $10,000 for himself. The weekend after the theft, Gomez, Mares, and Garcia went to clubs in Mexicali, Mexico and partied together, with Gomez paying their expenses.
Gomez further admitted that, on July 13, 2018, he entered a Chase Bank in Fairfield, California, a city in Northern California, midway between Sacramento and San Francisco, and approached a teller. Gomez handed her a demand note that instructed the teller to hand him money and took $5,000 in cash from her.
Gomez also admitted that, on September 15, 2018, he entered the Chase Bank located at 2303 N. Cottonwood Drive in Imperial, California, and approached a teller. He handed her a demand note that instructed the teller to hand him money in $100, $50, and $20 denominations, and warned the teller not to alert anyone or she would get hurt. The teller provided the defendant with $3,100 in cash and Gomez fled the bank.
“We are always working with federal and local law enforcement agencies, from San Diego to Imperial Valley to the Bay Area and points beyond, to bring serial criminals to justice,” said U.S. Attorney Robert Brewer. “There was no place this defendant could have fled to escape our coordinated efforts and now his cross-state crime spree has come to an end.”
“Since June 2018, the defendant embarked on a crime spree to fund his lifestyle,” said FBI Special Agent-In-Charge Scott Brunner. “Despite the distance between these individual crimes, investigators connected the cases. Today, Gomez has been brought to justice and is off the streets as a result of significant teamwork between the San Diego FBI Violent Crime Task Force and our law enforcement partners.”
“The successful conclusion of this case was due to coordinated and ongoing teamwork between the SDPD Robbery Unit, the FBI, and the Violent Crime and Human Trafficking Section (VCHT),
said San Diego Police Lt. Julie Epperson. “Collaboration with our law enforcement partners creates a stronger defense against criminals who prey on the public.”“This case is a testament to the collaboration and incredible working relationship of all the involved law enforcement agencies and the United States Attorney’s Office that worked together to help bring those responsible in this case to justice,” said El Centro Police Chief Brian Johnson. “Our communities are safer because of the great work of the VCHT and local law enforcement agencies that worked tirelessly to solve these cases. A tremendous thank you goes out to all involved.”
Garcia-Lopez and Mares were sentenced earlier this year for their roles in the Mission Valley Chase Bank theft.
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, by U.S. Attorney Robert Brewer, 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.
DEFENDANTS Case Number 19cr1321-BTM
Aldo De Jesus Gomez Age: 22 San Diego, CA
Related Case - Case Number 18cr4349-BTM
Joe Anthony Mares Age: 22 El Cajon, CA
Jesus Ramon Garcia-Lopez Age: 21 Yuma, AZ
SUMMARY OF CHARGES
Bank Robbery – Title 18, U.S.C., Section 2113(a)
Maximum penalty: 20 years’ imprisonment and $250,000 fine
Entering a Bank to Commit Larceny – Title 18, U.S.C., Section 2113(a)
Maximum penalty: 20 years’ imprisonment and $250,000 fine
AGENCY
Federal Bureau of Investigations
San Diego Police Department
El Centro Police Department
Imperial Police Department
Fairfield Police Department
Three Men Sentenced for Attempting to Smuggle $28 Million of Cocaine on the High SeasRead the Press Release
NEWS RELEASE SUMMARY – August 23, 2019
SAN DIEGO – Three South American cocaine traffickers were sentenced in federal court this week after being convicted of transporting approximately 1,230 kilograms (2,706 pounds) of cocaine—worth more than $28 million USD—on the high seas. The sentencing hearings followed a week-long trial in April in which a federal jury convicted all three defendants on all charges.
U.S. District Judge Roger T. Benitez handed down significant custodial sentences for defendants Adrian Andres Cortez-Quinonez, Segundo Marcial Dominguez-Caicedo, and Victor Gaspar-Chichande, sentencing them to 228 months, 216 months, and 160 months, respectively. Cortez-Quinonez and Gaspar-Chichande were sentenced today; the court handed down Dominguiz-Caicedo’s sentence on Tuesday.
At trial, the United States proved that on December 31, 2017, the U.S. Coast Guard Cutter Stratton responded to a report of a suspicious go-fast vessel traveling in the Eastern Pacific Ocean, approximately 100 nautical miles north of the Galapagos Islands, Ecuador. The Stratton launched a helicopter and two small boats to intercept the vessel.
As the helicopter closed in, the defendants stopped their vessel to avoid detection. But as the helicopter circled the vessel, the defendants took off, and soon a high-speed chase on the high seas ensued.
The defendants eventually brought their vessel to a stop when they could not outrun the Coast Guard helicopter. Dramatic video from the helicopter captured the defendants jettisoning dozens of bales of cocaine overboard. The defendants sped away again. With the go-fast vessel barreling through the high seas, and the helicopter in pursuit, a Coast Guard precision marksman hanging from the side of the helicopter took five shots at the vessel’s engines, disabling the vessel. Defendants were ultimately detained by the Coast Guard, and other Coast Guard boats recovered the jettisoned cocaine. After the defendants were transported to the United States, agents with the Drug Enforcement Administration continued the investigation.
“Defendants were not a haphazardly thrown-together motley crew. They operated a well-oiled machine,” said Assistant U.S. Attorney Kevin Mokhtari at sentencing. “But for the incredible skill, training and acumen of the United States Coast Guard, defendants might well be celebrating a successful cocaine venture.”
“This prosecution required precision targeting of a speeding vessel during a dramatic high seas chase,” said U.S. Attorney Robert S. Brewer, Jr. “From the capture at sea to the terrific presentation at trial this was the epitome of a team effort and I commend the U.S. Coast Guard, DEA, Assistant U.S. Attorney Kevin Mokhtari and our former Coast Guard Special Assistants, Ari Fitzwater and Emily Gibbons”
“Coast Guard crews who risk their lives interdicting multi-ton shipments of cocaine at sea are gratified to see another successful prosecution of smugglers,” said Rear Adm. Peter W. Gautier, Commander of the 11th Coast Guard District. “I’m proud of what our people on patrol accomplish, and appreciate the U.S. Attorneys who bring these drug traffickers to justice and make Coast Guard actions worthwhile. Together our law enforcement crews at sea, investigators ashore, and prosecutors in courtrooms are working to disrupt the criminal networks behind the deadly flow of illegal drugs that threaten our nation.”
“These men tried to bring over 24 million dosage units of cocaine into the United States. That is so much cocaine that the 1.4 million residents of San Diego City each could have gotten over 17 dosages units. That is crazy. Cocaine is a dangerous drug and while it was not meant to stay in San Diego, it would have crushed the city had it made it through,” said DEA Special Agent in Charge Karen Flowers. “In this case, DEA teamed up with the U.S. Coast Guard and our law enforcement partners to save lives and protect the homeland. These men wanted to profit off of their greed, with utter disregard for other people’s lives. Now they will pay for their actions with 13 to 19 years of their lives.”
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANTS Case Number 18cr0421-BEN
Adrian Andres Cortez-Quinonez Age: 25 Ecuador
Segundo Marcial Dominguez-Caicedo Age: 36 Colombia
Victor Gaspar-Chichande Age: 30 Ecuador
SUMMARY OF CHARGES
Conspiracy to Distribute Cocaine Onboard a Vessel Subject to the Jurisdiction of the United States – Title 46, U.S.C., Section 70503, 70506(b)
Maximum Penalty: Life in prison and $10 million fine
Possession with Intent to Distribute Cocaine Onboard a Vessel Subject to the Jurisdiction of the United States – Title 46, U.S.C., Section 70503
Maximum Penalty: Life in prison and $10 million fine
AGENCY
U.S. Coast Guard
U.S. Drug Enforcement Administration
Organized Crime and Drug Enforcement Task Force (OCDETF)Defendant Who Committed Sexual Assault on Cruise Ship Sentenced to 36 Months in CustodyRead the Press Release
NEWS RELEASE SUMMARY – August 23, 2019
SAN DIEGO – Today in federal court Saul Clemente Monago, 31, of Utah, was sentenced by District Court Judge Dana M. Sabraw to 36 months in custody and one year of supervised release for a sexual assault on a cruise ship. Defendant was also ordered to pay a $100 special assessment and to register as a sex offender in accordance with the Sex Offender Registration and Notification Act.
The record reflects that on October 11, 2018, the Norwegian Pearl cruise ship was docked in Ensenada, Mexico for a port call. The female victim (J.C.) and her cabin-mates had gone ashore in Ensenada, after which she returned to her room and fell asleep fully clothed on her bed. Shortly thereafter, J.C.’s cabin-mates returned to the cabin, accompanied by Defendant Saul Monago and two other men. Within minutes, everyone but J.C., who remained sleeping on the bed, and Defendant Monago left the cabin, and their departure was captured by a cruise ship security camera in the hallway outside the cabin. Shortly thereafter, J.C. woke up to Defendant, whom she never recalled having seen or met, laying on top of her, with his hand under her shorts and inside her underwear digitally penetrating her vagina with one or more fingers. J.C. pushed Defendant off while screaming, “No! Stop!” and ran into the hallway screaming for help, terrified at what was happening when she awoke. A ship security officer heard the loud commotion and J.C. screaming, “help” and “he is trying to rape me.” He reported to the area and encountered J.C. and a female witness from a nearby cabin outside. Upon entering J.C.’s cabin, the security officer saw Defendant lying on one of the beds, apparently intoxicated. Defendant, who admitted his conduct, was escorted first to the ship’s medical office and then to the Security office.
On October 14, 2018, the Norwegian Pearl docked at the San Diego Port. FBI personnel boarded the ship to investigate the assault and agents interviewed Defendant. In the interview room, Defendant spontaneously admitted his behavior, claiming that he was drunk and not behaving like himself. FBI Agents advised Defendant that he was under arrest, after which Defendant made additional spontaneous statements admitting his inappropriate actions.
The parties jointly recommended the statutory maximum term of imprisonment of 36 months, which will be followed by a one-year term of supervised release.
“As we are all becoming increasingly aware, sexual assaults of this nature can trigger long-term emotional trauma,” said U.S. Attorney Robert S. Brewer, Jr. “I hope this sentence brings closure, comfort and a measure of peace to the victim of this egregious act.” U.S. Attorney Brewer commended Assistant U.S. Attorney Jaclyn Stahl and the team of federal agents and victim service specialists who handled this case “with diligence and sensitivity.”
“This sentence is an important step in obtaining justice for the victim in this case,” said FBI Special Agent In Charge Scott Brunner. “Unfortunately, sexual assaults on cruise ships are one of the leading crimes reported to and investigated by the FBI on the high seas. The FBI is committed to working with our law enforcement partners to vigorously investigate and prosecute criminal offenses on the high seas.”
DEFENDANT Case No. 18-CR-4849-DMS
Saul Clemente Monago 31, Utah
SUMMARY OF CHARGES
18 U.S.C. § 2244(a)(2)
Maximum Penalty: 36 months custody and 1 year supervised release
AGENCY
Federal Bureau of Investigation
Teen Who Smuggled Individuals and Recruited Juveniles to Smuggle Drugs Sentenced to 46 Months in CustodyRead the Press Release
SAN DIEGO -- Phillip Junior Webb, 20, was sentenced by District Court Judge Michael M. Anello in federal court today to 46 months in custody for conspiring to distribute controlled substances and smuggle undocumented individuals, including a Mexican national and Chinese national, for financial gain.
According to the public record, at the time of the offense Webb was an 18-year-old high school senior who recruited other high school students to smuggle methamphetamine and/or fentanyl into the United States on multiple occasions. In each instance, the juveniles had drugs strapped on their bodies as they attempted to enter the United States at the San Ysidro or Otay Mesa Ports of Entry.
In May 2018 Defendant Webb was caught attempting to bring a Chinese national and a Mexican national into the United States in the trunk of his vehicle.
In July 2018, Webb pleaded guilty in federal court to charges that he recruited classmates to smuggle methamphetamine and fentanyl.
“We cannot allow drug cartels to cavalierly recruit our youth to smuggle potent methamphetamine and fentanyl drugs into our nation, thereby endangering our teens and contributing to our country’s addiction crisis,” said U.S. Attorney Robert S. Brewer, Jr. “We will stop this exploitation by bringing the full power of the justice system down on the recruiters who exploit these kids.”
“Violent Mexican cartels are making money by exploiting children in the United States and Mexico,” said DEA Special Agent in Charge Karen Flowers. “Our children, naive to the dangers, are promised money in exchange for allowing cartel members to strap drugs on their bodies in the back alleys of Tijuana, often surrounded by gun-baring cartel members, and smuggle the drugs to the US. What these children aren’t told is that these drugs are deadly and they are putting themselves at risk to be physically exploited or even killed. Phillip Webb coerced children with the lure of easy money and the Hollywood notion of a glamorized life of crime. His sentencing makes it clear that we will not stand by and let profiteers damage our children.”
“Today’s sentencing of Webb is an example of justice brought to an individual conspiring to exploit juveniles for their own financial gain,” said Timothy J. Tubbs, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in San Diego. “HSI continues to partner with CBP, other law enforcement agencies, and prosecutors to educate juveniles on the dangers, risks, and consequences of being involved in the vicious world of drug smuggling.”
“I commend the great work of CBP, HSI and DEA and recognize the unified coordination across government agencies to bring this person to justice,” said CBP Director of Field Operations for San Diego, Pete Flores. “We will continue to work diligently with our partners to stop transnational criminal organizations from exploiting and corrupting our youth.”
U.S. Attorney Brewer commended AUSA Sherri Hobson as a “force of nature,” who, inspired by the Webb investigation, helped spearhead an ambitious juvenile smuggling prevention program, in collaboration with the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), Customs and Border Protection (CBP), the District Attorney, the San Diego Police Department, local schools, and South Bay Community Services. Over the past year, the multi-agency prevention team made scores of presentations, which have already reached 11,580 people, including 9,250 students, more than 680 parents, 610 school staff, health and counseling professionals, 145 members of law enforcement and 215 community members.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Case No. 18MJ2229
Phillip Junior Webb Age: 20 Tijuana, Mexico
CHARGES
Count 1 – Conspiracy to Distribute Methamphetamine (21 U.S.C. 841 & 846)
Maximum Penalty: Ten years minimum to life in custody; $1 million fine
Count 2 - Bringing in Undocumented Aliens for Financial Gain (8 U.S.C. 1324)
Maximum Penatly: Three years mandatory minimum to 20 years in custody; $250,000 fine
AGENCY
Homeland Security Investigations
Drug Enforcement Administration
Customs & Border Protection
Homeland Security Investigations
San Diego County Sheriff’s Department
Manager of Insurance Broker Pleads Guilty in Seven-Year Embezzlement SchemeRead the Press Release
NEWS RELEASE SUMMARY – August 19, 2019
SAN DIEGO – A Ramona woman, who for ten years worked as the operations manager for a San Diego-based insurance broker, admitted today to participating in a scheme to defraud her employer of over $700,000. The scheme lasted over seven years and involved hundreds of fraudulent checks written to herself and a family member.
During a hearing this morning before U.S. District Judge Thomas J. Whelan, the defendant, Antonia Barber, pleaded guilty to one felony count of Wire Fraud.
According to her plea agreement, Barber, 51, worked as the operations manager for a local insurance brokerage firm from 2005 until June 2015. In that job, she had significant discretion over the finances of the company, and was responsible for approving expense reimbursement requests. Abusing her position, she caused hundreds of checks to be written by the company to a family member, purportedly for “records management,” when in fact such services were not provided. Additionally, she caused hundreds of checks to be written by the company to herself personally, purportedly for expense reimbursements – expenses which in fact she had not incurred. The defendant admitted that the total loss in connection with these fraudulent checks was approximately $726,000 over the course of the seven-year scheme.
“The business owners in our community have a right to the honest services of their employees,” said United States Attorney Robert S. Brewer, Jr. “Stealing from your employer, whether done in a subtle manner over a period years or a brazen way, results in a negative hit to the bottom line that impacts competitiveness. It will not be tolerated.” “I also want to commend the Secret Service for their excellent investigation and AUSA Robert Huie for his leadership and tenacity during this investigation,” Brewer said.
“The U.S. Secret Service is committed to protecting our nation’s financial infrastructure, which includes stopping fraudulent activities like this wire and check fraud,” said Special Agent in Charge James E. Anderson Jr., of the U.S. Secret Service San Diego Field Office. “The Secret Service San Diego Field Office will continue to investigate individuals who utilize and take advantage of their position in an effort to defraud their employer.”
Barber is scheduled to be sentenced on December 9, 2019 at 9:00 a.m., before Judge Whelan.
DEFENDANT Case Number 18-CR-4028-W
Antonia Barber Ramona, CA Age: 51
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: 20 years’ imprisonment, $250,000 fine (or twice the pecuniary gain or loss), restitution and forfeiture.
AGENCIES
U.S. Secret Service
Dark Web Vendor Sentenced to 70 months for Internet Distribution of Deadly Carfentanil, Fentanyl, and Other DrugsRead the Press Release
NEWS RELEASE SUMMARY – August 19, 2019
SAN DIEGO – Today in federal court Sky Justin Gornik, age 39, of San Diego was sentenced by District Court Judge Anthony J. Battaglia to 70 months in prison for participating in a conspiracy to deliver, distribute and dispense controlled substances through the internet, in violation of Title 21, United States Code, Sections 841(h), 841(b)(1)(A), and 846. Gornik previously pled guilty to that charge and also admitted that he engaged in a conspiracy to launder drug proceeds using digital currencies, in violation of Title 21, United States Code, Sections 1956(a)(1)(A)(i) and 1956(h). As part of his guilty plea, Gornik admitted that from 2014 to June 7, 2017 (the date of his arrest by federal authorities), he bought and sold controlled substances on the Dark Web. Employing anonymous screen names, Gornik used multiple Dark Web marketplaces (including Alpha Bay, Trade Route, Abraxas, Evolution, Outlaw Market, and Dream Market) to buy and sell controlled substances. Specifically, Gornik admitted that he purchased and sold fentanyl and purchased the especially deadly opiate carfentanil using a variety of digital currencies. Gornik also purchased and sold multiple other controlled substances, including thousands of vials of ketamine, oxycodone pills, Dimethyltryptamine (DMT), Psilocybin and Psilocin, Amphetamine, Buprenorphine, Methamphetamine, and Naloxone.
According to court documents, agents seized 1.7 grams of carfentanil inside Gornik’s residence on June 7, 2017. Carfentanil is a synthetic opioid approximately 10,000 more potent than morphine and 100 times more potent than fentanyl. The 1.722 grams of carfentanil seized in Gornik’s residence could equate to over 86,000 fatal dosages. Gornik also possessed sheets of fentanyl gelatin tablets (approximately 100 tabs per sheet), which agents seized during the search. The public record reflects that Gornik obtained 600-1200 fentanyl gel tablets each week for approximately two years from a Dark Web vendor, identified as Steven Wallace George, who resides in Oklahoma. George, who manufactured pure fentanyl obtained from China into gelatin tablets, was prosecuted by federal authorities in Oklahoma (see Case No. 17-090-R, Western District of Oklahoma).
As part of his guilty plea, Gornik agreed to forfeit millions of dollars in digital or crypto currency including Bitcoins, Stratis, Ethereum, 2350 Monero, digital currency contained in Gornik’s Bittrex accounts, and digital currency contained in Gornik’s Poloniex accounts. Gornik admitted that these digital or crypto currency represented drug trafficking proceeds of the offense and were involved in the offense of money laundering over the Dark Web.
“Dark Web traffickers take note: we will not allow you to lurk in murky corners of the internet, selling and delivering deadly drugs as casually as an Amazon Prime package,” said U.S. Attorney Robert S. Brewer, Jr., who commended AUSA Sherri Hobson and the multi-agency team for “cracking through multiple levels of anonymity mazes to uncover the true nature and extent of Gornik’s drug dealing and money laundering.”
"Battling opioids in the mail is one of the Postal Inspection Service's highest priorities. By working closely with our law enforcement partners in operations such as this, we can stop drugs and violence from reaching the American public," said Nichole Cooper, Inspector in Charge of the Los Angeles Division.
“Today’s sentencing of Gornik demonstrates the commitment of Homeland Security Investigations (HSI) and our federal partners to bring these criminals to justice,” said Juan Munoz, Acting Special Agent in Charge of HSI in San Diego. “HSI will continue to aggressively pursue those that continue to violate the law and jeopardize the safety of our communities by selling deadly opioids and other dangerous drugs via the Dark Web.”
The investigation was led by U.S. Postal Inspectors in San Diego with the assistance of Special Agents of Homeland Security Investigations.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
DEFENDANT Criminal Case No.17CR2796AJB
Sky Justin Gornik Age: 39 San Diego, California
SUMMARY OF CHARGES
Count 1 (Conspiracy to Deliver, Dispense, and Distribute Controlled Substances By Internet)
Maximum penalty: 10 year minimum mandatory to life, fine of $1,000,000, 5 years of supervised release
Count 2 (Conspiracy To Launder Money)
Maximum penalty: 20 years; fine of $500,000, 3 years of supervised release
Criminal Forfeiture As To Count 1
Forfeiture to the United States of all property, real and personal, that constitutes or is derived from proceeds of the offense, and all property, real and personal, that was used to commit or to facilitate the commission of the offense.
Criminal Forfeiture As To Count 2
Forfeiture to the United States of all property, real and personal, involved in the offense.
AGENCIES
United States Postal Inspection Service, San Diego
United States Postal Inspection Services, Cyber Unit, Washington D.C.
United States Postal Inspection Service, Oklahoma
Homeland Security Investigations
Internal Revenue Service, Criminal Investigations
San Diego Police Department
San Diego District Attorney’s Office
U.S. Department of Justice, Criminal Division, Money Laundering & Asset Recovery Section
Jury Convicts Three Men of Trafficking Nearly $17 Million Dollars of CocaineRead the Press Release
NEWS RELEASE SUMMARY – August 14, 2019
SAN DIEGO – Three defendants were convicted by a federal jury on charges stemming from their efforts to traffic approximately 734 kilograms (1614 pounds) of cocaine -- worth nearly $17 million dollars -- on the high seas. The verdict came yesterday afternoon after a 10-day trial in the United States District Court for the Southern District of California before the Honorable Janis L. Sammartino.
At trial, the United States proved that on May 24, 2017, a United States Maritime Patrol Aircraft spotted a suspicious vessel alongside multiple packages of suspected floating contraband in the Eastern Pacific Ocean, approximately 364 nautical miles south of Chiapas, Mexico. The patrol aircraft notified the nearby the United States Coast Guard Cutter WAESCHE, which launched two small boats to intercept the vessel. The United States Coast Guard found Defendants aboard a vessel approximately 50 yards away from 15 bales of cocaine. The United States Coast Guard detained the defendants, recovered the cocaine, and transported them to the United States.
“This verdict is a result of the dedication of our law enforcement partners at the Coast Guard and DEA as well as the excellent trial advocacy of Assistant U.S. Attorneys Francis DiGiacco, Victor Pablo White, and Nicole Bredariol,” said U.S. Attorney Robert S. Brewer, Jr. “Stopping dangerous drugs before they reach our shores is a key priority for the U.S. Attorney’s Office and we will continue to target these maritime smuggling routes to protect the citizens of our district.”
“These smugglers have been brought to justice thanks to the dedication of the cutter Waesche’s officers and crew,” said Rear Adm. Peter W. Gautier, Eleventh Coast Guard District Commander. “This seizure adds to the thousands of kilograms of deadly narcotics seized at sea every month through the efforts of the Coast Guard, our partner agencies, and partner nations. Together we will continue our determined fight against narcotics trafficking and the criminal networks that threaten our country.”
“We may not have a wall at sea, but we do have an elite group of DEA Agents working from South America, Central America and Mexico to protect the land, sea and air borders in San Diego and Imperial Counties,” said DEA Special Agent in Charge Karen Flowers. “Utilizing all tools available, DEA merges actionable intelligence with the capabilities of other agencies to unleash the Coast Guard’s fury to stop drugs from getting to the United States. One Team, One Goal – to keep Americans safe and free from the scourge of illegal drugs.”
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
The defendants will be sentenced on November 15, 2019 before the United States District Judge Janis L. Sammartino.
DEFENDANT Case No. 17-CR-1585-JLS
Jorge Ivan Cobena-Laje (41)
Jose Manuel Murillo-Pivaque (33)
Diomedes Valverde-Magla (65)
CHARGES
Conspiracy to Possess with Intent to Distribute Cocaine on Board a Vessel - 46 U.S.C. §§ 70503 and 70503(b)
Maximum Penalty: Life in prison and $10,000,000 fine
Possession of Cocaine with Intent to Distribute on Board a Vessel
46 U.S.C. § 70503
Maximum Penalty: Life in prison and $10,000,000 fine
AGENCIES
U.S. Coast Guard
Drug Enforcement Administration
Organized Crime and Drug Enforcement Taskforce (OCDETF)
Federal Jury Convicts Prior Felon for a Violent Armed Robbery of the Carlsbad Motel 6Read the Press Release
NEWS RELEASE SUMMARY – August 14, 2019
SAN DIEGO – Yesterday, a federal jury found Lance Lamont Lavert, a Utah resident, guilty of robbing the Motel 6 in Carlsbad, California, using and brandishing a Smith and Wesson .357 magnum revolver during the robbery, and being a felon in possession of a firearm. The jury returned their verdict after hearing the testimony of 11 witnesses and deliberating for approximately two hours.
“We are working tirelessly with our local and federal law enforcement partners to find and prosecute violent criminals and keep our community safe,” said U.S. Attorney Robert Brewer. “We are gratified to have brought this defendant to justice and some measure of peace to his victims, thanks to the diligent efforts of Assistant U.S. Attorneys Brandon Kimura and Matthew Brehm and our law enforcement partners.”
During trial before Chief District Judge Larry Alan Burns, the prosecution relied on victims from the Motel 6, a Carlsbad police detective, forensic specialists from the San Diego Sheriff’s Department, and federal agents, among others, as witnesses to prove Lavert’s traumatizing crimes. Witnesses described how, on the morning of July 9, 2018, Lavert and his girlfriend, a co-defendant, entered the Motel 6 on Paseo Del Norte in Carlsbad, California. Lavert approached the counter and asked for a room. When his request was denied due to a lack of identification, Lavert pulled a gun out of his backpack, pointed it at the clerk and her manager, and then demanded money. The clerk and manager ran from Lavert but Lavert jumped the counter, kicked in the door of the bathroom where the clerk was hiding, and then brought the clerk (at gun point) back to cash register. Lavert demanded money and pistol-whipped her in the head. After the clerk opened a drawer that held the motel’s cash, Lavert grabbed money from the drawer and ordered the clerk to give him keys to her personal vehicle. Lavert then jumped back over the counter and he and his girlfriend departed.
Two days later, Lavert was arrested trying to enter the United States from Mexico at the San Ysidro Port of Entry. He had the Smith and Wesson .357 magnum revolver concealed in his waistband. The prosecution introduced certified court documents to prove Lavert had several prior felony convictions, including for arson.
“This case serves as a great example of the close cooperation that exists between federal and local law enforcement and the U.S. Attorney’s Office, “said Timothy J. Tubbs, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in San Diego. “HSI will continue working with our regional partners to ensure that violent criminals are brought to justice.”
Lavert’s co-defendant and girlfriend (at the time of the offense) accepted a resolution before trial.
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, by U.S. Attorney Robert S. Brewer, Jr., 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, labor trafficking and alien smuggling. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood.
DEFENDANT Case Number 18cr3485-LAB
Lance Lamont Lavert Age: 37 Salt Lake City, UT
SUMMARY OF CHARGES
Interference with Commerce by Threats or Violence – Title 18, U.S.C., Section 1951(a)
Maximum penalty: 20 years’ imprisonment and $250,000 fine
Using and Brandishing a Firearm During and in Relation to a Crime of Violence –
Title 18, U.S.C., Section 924(c)
Maximum penalty: life imprisonment; a mandatory minimum seven years in prison; and $250,000 fine
Felon in Possession of a Firearm
Title 18, U.S.C., Section 922(g)(1)
Maximum penalty: 10 years’ imprisonment and $250,000 fine
AGENCY
Carlsbad Police Department
San Diego Sherriff’s Department
Homeland Security Investigations
Customs and Border Protection
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Gang Member Sentenced to 30 Years for Role in Drug Distribution Conspiracy and Attempted Robbery Ordered by the Mexican MafiaRead the Press Release
Assistant U.S. Attorneys Todd Robinson (619) 546-7994 and Kareem Salem (619) 546-8904
NEWS RELEASE SUMMARY – August 5, 2019
SAN DIEGO – Jose Hernandez, aka “Chapo,” a member of the Otay River Bottom Locos gang, was sentenced today in federal court to 30 years in prison for his aggravated role in a drug distribution conspiracy as well as his participation in an attempted armed robbery ordered by the Mexican Mafia.
The charges stem from an investigation by the FBI-led Violent Crimes Task Force, Gang Group (VCTF-GG) into drug trafficking, firearms and violent crimes being committed by certain gang members and their associates in San Diego.
“This sentence is a big win for public safety,” said U.S. Attorney Robert Brewer. “This defendant, a violent drug trafficker and gang member, will be unable to menace the community for decades to come.” The U.S. attorney praised prosecutors Kareem Salem and Todd Robinson as well as the FBI and members of the Violent Crimes Task force-Gang Group for their hard work.
“This significant 30-year sentence sends a message that the FBI and its partner agencies on the Violent Crimes Task Force-Gang Group will relentlessly pursue gang members involved in violent crime, firearms offenses and drug trafficking,” said FBI SAC Scott Brunner. “Cases like this one, focusing on dangerous gang members, deter and reduce gang-related violence and drug trafficking in Southern California. We thank all the federal, state, and local agencies that participated in this long term investigation and are proud to share the success and impactful results with our partners.”
The defendant was convicted by a federal jury on May 21, 2019 (18cr3424-LAB) of being a felon in possession of a firearm; attempting to commit a Hobbs Act Robbery; and possession of a firearm in furtherance of a crime of violence. He pleaded guilty on May 9, 2019 (18cr4217) to one count of conspiring with others to distribute over 50 grams of methamphetamine.
According to evidence presented at trial, agents intercepted communications of the defendant and two of his co-defendants who discussed their intention to commit an armed robbery and assault on behalf of the Mexican Mafia. In response, San Diego Police Department Gang Suppression Officers stopped the vehicle in which Jose Hernandez was the front passenger as they drove to their intended victim. Ultimately, officers recovered four firearms, 56 rounds of ammunition and zip ties, which officers believe were for restraining the intended victim.
In addition to his role in the attempted robbery, the defendant was sentenced for his role, organization, and distribution of multiple pounds of methamphetamine.
Intercepted communications also revealed that the defendant was engaged in the distribution of methamphetamine to several customers, including an individual who on two occasions flew from Florida to purchase pounds of methamphetamine from the defendant. But for the quick response from members of the VCTF-GG, pounds of methamphetamine, which were packaged and shipped via the United States Postal Service, would have found its way to drug users in the Florida area.
SUMMARY OF CHARGES
Felon in Possession of a Firearm, in violation of Title 18, U.S.C. Section 922(g)
Maximum Penalty: Ten years in prisonAttempted Hobbs Act Robbery, in violation of Title 18, U.S.C. Section 1951
Maximum Penalty: Twenty years in prisonPossession of firearm in furtherance of a crime of violence, in violation of Title 18, U.S.C. Section 924(c)
Maximum Penalty: Five years mandatory minimum in prisonConspiracy to Distribute Methamphetamine, in violation of Title 21, U.S.C. Sections 841 (a)(1) and 846
Maximum Penalty: Up to life in prison; Ten year mandatory minimumDEFENDANT Case Numbers: 18CR3424-LAB & 18CR4217-LAB
Jose Hernandez Age: 38 San Diego
INVESTIGATING AGENCIES
Violent Crimes Gang Task Force
Task Force agencies include:
FBI, ATF, DEA, BOP, USPIS, California Department of Corrections and Rehabilitation, San Diego District Attorney's Office, San Diego Police Department, San Diego Sheriff's Department, National City Police Department, Chula Vista Police Department, La Mesa Police Department, El Cajon Police Department and Federal Bureau of Prisons- Joint Intelligence Sharing Initiative.
Bank Robber Pleads Guilty to Brazen HeistRead the Press Release
Assistant U. S. Attorneys Adam Gordon (619) 546-6720 and Matthew Brehm (619) 546-8983
NEWS RELEASE SUMMARY – August 6, 2019
SAN DIEGO – Omar Mata Guerra pleaded guilty today in federal court, admitting that he robbed the Bank of the West branch in La Mesa in May.
Guerra entered his plea before U.S. Magistrate Judge Linda Lopez. Sentencing is scheduled for October 21, 2019 at 9 a.m. before U.S. District Judge Anthony J. Battaglia.
Guerra admitted in his plea agreement that on May 10, 2019, he entered the Bank of the West branch located at 8690 Center Drive, La Mesa. He approached the teller and stated, “Listen don’t do anything stupid, I’ve done this before, stay calm, give me money from your top drawer.” He told the teller to “keep your hands where I can see them, no alarm, no dye packs.” As the teller began to gather the available money from the drawer, Guerra insisted “hurry up, go faster.” When the money was placed on the counter, Guerra took approximately $1,152.40 in cash before fleeing the bank.
Guerra was caught after FBI agents issued a Special Bulletin using the video surveillance stills of the robbery. These video surveillance stills caught Guerra’s distinctive tattoo under his right eye, which led to his subsequent identification and arrest.
“This bank robber not only took money, he stole the peace of mind of bank employees,” said U.S. Attorney Robert Brewer. “Our law enforcement partners acted swiftly to ensure that this brazen robber was brought to justice and unable to harm others.” Brewer thanked prosecutors Adam Gordon and Matthew Brehm and FBI agents for their hard work on the case.
“The San Diego FBI Violent Crime Task Force works closely with our law enforcement partners to keep our community safe,” said Special Agent in Charge Scott Brunner. “As a result, this bank robber is off the streets and will face justice.”
DEFENDANT Case Number 19CR2001-AJB
Omar Mata Guerra Age: 24 San Diego, CA
SUMMARY OF CHARGES
Bank Robbery – Title 18, U.S.C., Section 2113(a)
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCIES
Federal Bureau of Investigation
La Mesa Police Department
San Diego Sherriff’s Department
Managers of Local Gold Dealer Plead Guilty to Money LaunderingRead the Press Release
Assistant U. S. Attorney Daniel Silva (619) 546-9713
NEWS RELEASE SUMMARY – August 2, 2019
SAN DIEGO – Global Gold Exchange, LLC and its managers, Jeffrey Morrow and Richard M. Owen, pleaded guilty in federal court today to multiple financial crimes, admitting that they laundered money through their unlicensed money transmitting business by falsely reporting cash transactions as sales of “gold” and other precious metals.
As part of their guilty pleas, the defendants agreed to forfeit approximately $2 million in assets involved in the money laundering and unlicensed money transmitting business.
Special Agents from IRS-Criminal Investigation’s Financial Investigations and Border Crimes Task Force worked with FBI agents and the United States Postal Inspection Service during the multi-year investigation to unravel millions of dollars in suspicious transactions taking place at the San Diego-based office and bank accounts of Global Gold Exchange, or GGEX. GGEX also pleaded guilty to mail fraud, while Owen also pleaded guilty to unlawful possession of a firearm or ammunition.
As detailed in the plea agreements entered today before U.S. Magistrate Judge Jill L. Burkhardt, GGEX unlawfully laundered cash and funds from a variety of sources – both lawful and unlawful – and fraudulently documented the transactions as “a complete gold transaction.” In sum, GGEX and its managers admitted operating “as an informal money transfer system engaged in facilitating the transfer of money domestically and internationally outside of the conventional financial institutions system, and did so without regard for the source, destination, purpose, or legality of the funds transmitted.”
Between 2017 and 2018, GGEX and managers Morrow and Owen admitted that they and others employed various money laundering and unlicensed money transmitting techniques to conduct unlawful transactions through GGEX and GGEX’s bank accounts, including:
-Transacting with a “local cartel out of Mexico;”
-Falsifying invoices for sales of gold, when in reality it was the receipt of a large cash deposit, and returned by check after GGEX took a 10 percent fee;
-Agreeing with “clients” to tell law enforcement or tax authorities that the transactions were sales/purchases of precious metals; and
-Advising clients to mail GGEX parcels filled with heavy substances to mimic the weight of gold to falsely document the nature of GGEX’s transactions.
“Global Gold Exchange and its managers attempted to operate as a one-stop-shop for money laundering,” said United States Attorney Robert S. Brewer, Jr. “The package of guilty pleas entered today makes clear that the United States will pursue and prosecute any individual, asset, or business attempting to launder the proceeds of crimes, or that threaten the integrity of our financial system.”
“Criminal organizations are becoming increasingly dependent on individuals and businesses who offer their expertise and services to assist in laundering illegal proceeds,” said Internal Revenue Service-Criminal Investigation Special Agent in Charge Ryan L. Korner. “Today’s plea should send a clear message to these individuals and businesses that they will be held accountable and face the consequences.”
“Global Gold Exchange and its managers Jeffrey Morrow and Richard M. Owen accepted money from all sources regardless of lawfulness,” said Nichole Cooper, Los Angeles Division Inspector in Charge, United States Postal Inspection Service. “They then subverted conventional financial institution systems by using fraudulent invoices, directing clients to mislead law enforcement, and labeling it ‘a complete gold transaction.’ The result of this plea agreement shows the US Postal Inspection Service and its federal partners bring justice to those who seek to hide their crimes from the law.”
This case is the result of ongoing efforts by the Financial Investigations and Border Crimes Task Force, a partnership targeting unlawful transactions through the financial system. The task force brings together the combined expertise of federal, state, and local law enforcement including IRS-CI, California Franchise Tax Board, United States Postal Inspection Service, and the San Diego Police Department. FBI and United States Postal Inspection Service partnered with the FIBC in this coordinated investigation. This case is being prosecuted by Assistant U.S. Attorney Daniel Silva.
Sentencing is scheduled to occur on October 16, 2019. Owen faces a maximum of 20 years in prison. Morrow faces a maximum of five years in prison. GGEX faces a maximum of five years probation.
DEFENDANTS Case Number 19-CR-2936-CAB
Global Gold Exchange, LLC
Richard M. Owen San Diego, CA Age: 49
Jeffrey Morrow San Diego, CA Age: 44
SUMMARY OF CHARGES*
Money Laundering – Title 18, U.S.C., Section 1956
Maximum penalty: Twenty years in prison and $500,000 fine
Operation of Unlicensed Money Transmitting Business – Title 18, U.S.C., Section 1960
Maximum penalty: Five years in prison and $250,000 fine
Mail Fraud – Title 18, U.S.C., Section 1341
Maximum penalty: Thirty years in prison and $1 million fine
Unlawful Possession of Firearm – Title 18, U.S.C., Section 922(g)
Maximum penalty: Ten years in prison and $250,000 fine
AGENCIES
IRS Criminal Investigations and the Financial Investigations and Border Crimes Task Force
Federal Bureau of Investigation
United States Postal Inspection Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Fraudster Brought Back from Kenya to Face Jail Time for Stealing Almost $750,000 from UCSD through a Spear Phishing CampaignRead the Press Release
Assistant U. S. Attorney Alexandra F. Foster (619) 546-6735
NEWS RELEASE SUMMARY – August 1, 2019
San Diego – Amil Hassan Raage pleaded guilty to fraudulently receiving almost $750,000 as part of a spear phishing scheme. (Spear-phishing is when an unwitting victim responds to a bogus email, which the victim believes is from a trusted sender, and reveals confidential information to the fraudsters.)
On July 23, 2018, the University of California San Diego (UCSD) received a spear phishing email from a fraudulent Dell email account instructing UCSD to redirect its payments meant for Dell equipment and services to Raage’s Wells Fargo bank account in Minnesota. Believing that the email was from a legitimate Dell employee, UCSD followed the instructions and redirected payment.
The email actually originated from one of Raage’s co-conspirators in Kenya. From August 8 through September 12, 2018, UCSD sent Raage 28 payments totaling $749,158.37. Each time UCSD wired money to Raage’s account, Raage would promptly withdraw the money or transfer it to another account. When UCSD learned of the fraud, it halted payments.
UCSD was not alone. Raage and his co-conspirators perpetrated a similar scheme on another university, this one in Pennsylvania. Again, a co-conspirator in Kenya used a falsified Dell account to instruct the Pennsylvania university to redirect its Dell payments to a bank account in Minnesota again controlled by Raage. Over the month of January 2018, the Pennsylvania university wired six payments totaling $123,643.77 to Raage’s bank account before the university was alerted to the fraud and stopped payments.
After the bank froze Raage’s accounts, he fled to Kenya on September 22, 2018. Working with Kenyan law enforcement, the FBI’s Legal Attaché in Kenya, and the Department of Justice’s Office of International Affairs, Kenyan police arrested Raage on May 7, 2019, and extradited back to the United States on May 23, 2019, to face prosecution for his involvement in this theft.
“Modern criminals like Raage have ditched the ski mask and getaway vehicle and opted for a computer as their weapon of choice,” said U.S. Attorney Robert Brewer. “As this defendant has learned, we are matching wits with new-age thieves and successfully tracking them down and putting an end to their high-tech deception.”
“As exemplified by this outstanding result, criminals who operate in cyberspace falsely believe themselves to be beyond the reach of law enforcement, but they are sorely mistaken,” said FBI Special Agent-In-Charge Scott Brunner. “Our agents will relentlessly pursue justice, aided by our foreign partners. Thank you to the Kenyan National Police and the Office of International Affairs for their invaluable assistance in bringing Mr. Raage before the bar of justice.”
This type of spear phishing activity has been on the rise, especially for universities, local governments and other entities with procurement paperwork available on-line.
If you or your business or organization have been victimized by an email compromise scam, such as this one, it is important to act quickly. Contact your financial institution immediately and request that they contact the financial institution where the fraudulent transfer was sent. Next, call the FBI at 1-800-CALL-FBI and also file a complaint—regardless of dollar loss—with the FBI’s Internet Crime Complaint Center (IC3).
Raage’s sentencing is set for 8:30 a.m. on October 11, 2019, before U.S. District Judge Gonzalo P. Curiel.
DEFENDANT Case Number: 18CR4858-GPC
Amil Hassan Raage Age: 48
SUMMARY OF CHARGE
Conspiracy to Commit Wire Fraud, in violation of Title 18 United States Code, Sections 1349
Maximum Penalty: Twenty years in prison
AGENCIES
Federal Bureau of Investigation, San Diego Division
Kenya Police Service
Director of Public Prosecutions, Kenya
Legal Attaché, U.S. Embassy, Nairobi, Kenya
U.S. Department of Justice, Office of International Affairs
U.S. Attorney Issues Public Safety Alert: Fentanyl Crisis Raging in San DiegoRead the Press Release
Kelly Thornton (619) 546-9726
NEWS RELEASE SUMMARY – July 31, 2019
SAN DIEGO – In the wake of four fentanyl overdose deaths in San Diego County in 24 hours last week, U.S. Attorney Robert Brewer issued a public safety alert today for drug users to be aware that a lethal strain of fentanyl designed to look like oxycodone is being sold on the streets to unwitting buyers and the price may be the buyer’s life.
Brewer also warned that the fentanyl crisis is raging here as border seizures, prosecutions and overdoses are on pace to hit all-time highs in San Diego County at the end of 2019.
“That heroin, that meth, that coke, that oxy you think you are taking? Well, it just might have fentanyl in it, and it just might be the last thing you ever do,” Brewer said. “I cannot be more clear than this: Fentanyl may be the costliest drug you ever do, because you may pay with your life, and you won’t even know you took it.”
Fentanyl-related deaths are rapidly climbing to unprecedented levels. The Medical Examiner’s Office reports 50 confirmed fentanyl-related overdose deaths so far this year, plus another 28 suspected but yet-to-be confirmed cases with four months remaining in the year. Should this trend continue for the remainder of 2019, the death toll could potentially reach 130, which would amount to a 47 percent increase over last year’s total of 90 deaths, and a staggering 787 percent hike over five years ago when there were 15. The victims are overwhelmingly male, and the average age is 36, with the youngest 18 and the oldest 66.
“Just when we think it can’t get any worse, the latest numbers prove us wrong,” Brewer said. “I am alarmed by the dramatic surge in trafficking activity and deaths, particularly of young people. San Diego is the fentanyl gateway to the rest of the country, and we are working hard to close that gate with interdiction, prosecution and education.”
Federal authorities, led by U.S. Customs and Border Protection and Homeland Security Investigations, have confiscated an estimated 533 kilograms – or 1,175 pounds – of illicit fentanyl at and near the international border so far this year. That’s more than half a ton. Just four years ago, authorities seized a fraction of that - only 30 kilograms. In addition, there has been a record number of seizures involving counterfeit blue pills labeled M-30 that contain fentanyl.
“Your dealer, BFF, lover, or classmate may become your murderer and the medical examiner may become your personal physician,” said DEA Special Agent in Charge Karen Flowers. “Life is precious. Don’t gamble yours away for a quick high that sends you home from the party in a body bag.”
“Homeland Security Investigations (HSI) is committed to pursuing transnational criminal organizations who continue to profit from smuggling and distributing this deadly opioid that threatens our communities,” said Timothy J. Tubbs, Acting Special Agent in Charge for HSI in San Diego. “HSI will continue to collaborate with our local, state, federal, and international law enforcement partners to protect our communities from dangerous drugs.”
“Fentanyl is a dangerous synthetic drug that poses a deadly risk for people who encounter this opiate,” said CBP Director of Field Operations in San Diego, Pete Flores. “CBP officers take special safety precautions when handling such substances and taking them off the street is another example of how CBP protects our communities against all threats.”
The DEA is working in conjunction with local law enforcement agencies in San Diego to ensure the most effective overdose death investigations and prosecutions. DEA is actively investigating fatal overdose deaths that occur in the San Diego County and has established an Overdose Response Group, which consists law enforcement from DEA, SDPD, Homeland Security Investigations, California Department of Health Care Services and FBI. The goal of this specialized group is to identify the distributors of these deadly drugs that are bringing heartbreak to our communities.
Fentanyl is 30-50 times more powerful than heroin and so dangerous that in its purest form, even a tiny amount touching the skin can be deadly. According to law enforcement reports, the price of fentanyl in 2019 – whether in powder form and pill form – is declining, meaning that both forms are readily available in our community.
Users are also ordering up fentanyl from the so-called “Dark Web” like they would order something from Amazon. The drug is being purchased online and sent directly to customers by mail or express delivery service in the U.S.
Brewer urged users who opt to disregard his dire warning to seek Narcan, a drug that can reverse the effects of opioid overdose and save lives. Narcan is available by prescription and can be purchased at many pharmacies without a prescription.
The law enforcement community has taken this problem very seriously and developed a multi-level strategy that involves a number of approaches from different disciplines.
The U.S. Attorney’s Office and District Attorney’s Office are working closely with the Medical Examiner’s Office, and its law enforcement partners, on overdose cases involving fentanyl to trace the origin of these deadly substances and build possible murder cases against suppliers. So far, the U.S. Attorney’s Office has charged about a dozen alleged dealers.
In November, U.S. Attorney Brewer, DEA, HIDTA and the San Diego Prescription Drug Abuse Task Force are sponsoring a Western States Opioid Summit that will bring together hundreds of professionals from multiple disciplines to provide training and best practices to combat the fentanyl scourge. Surgeon General Jerome Adams will address the group.
The U.S. Attorney’s Office and its partners created a local Fentanyl Working Group in early 2017, which meets quarterly. This is a multi-dimensional group that includes local, state and federal investigative agencies, toxicologists, the Medical Examiner’s Office, DEA Lab Chemists, first responders, plus local, county and federal prosecutors. This collaboration is a significant step in working together to promote streamlined investigations.
The Fentanyl Working Group also held the sixth Fentanyl Forum on July 18, 2019, where hundreds of local and federal law enforcement officers learned about the dangers of encountering fentanyl in the field; the local smuggling trends from Mexico and China to the U.S.; parcel interdiction cases, prosecution of overdose cases in state and federal courts; and prosecution collaboration with our office and that of the District Attorney.
The Fentanyl Working Group is also committed to arming the community and first responders with the important information they need to stay safe.
Members of the public who encounter suspicious counterfeit blue pills labeled M-30 are urged to dispose of them safely by referring to resources listed at https://www.sandiegorxabusetaskforce.org/community-resources
People who need help with mental health including substance use disorder, suicide prevention, medication needs, and more can call the San Diego County Crisis line at 888-724-7240. It’s open seven days a week, 24 hours a day.
Credit Union Teller Admits Stealing More Than $100,000 from Elderly Account HoldersRead the Press Release
Assistant U.S. Attorney Nicholas W. Pilchak (619) 546-9709
NEWS RELEASE SUMMARY – July 31, 2019
SAN DIEGO – An Imperial Beach man admitted today to embezzling $117,305 from vulnerable older account holders at the credit union where he worked as a teller.
Samuel Davalos, Jr. pleaded guilty to one count of bank fraud during a hearing this morning before U.S. Magistrate Judge Barry M. Kurren.
Davalos, 28, was employed as a teller at Point Loma Credit Union (PLCU) from July 2017 to March 2019, according to his plea agreement. Using his account access, Davalos defrauded PLCU and its members by processing unauthorized withdrawals from members’ accounts, and creating unauthorized checks and other instruments paid to himself and his accomplices. Davalos admitted in his plea agreement to recruiting three other individuals to assist with his scheme by depositing checks drawn on his victims’ accounts.
Davalos also acknowledged that he selected his victims because of their age and vulnerability, targeting older PLCU members because he believed them less likely to notice the fraud.
In sum, Davalos stole $117,305 from four different PLCU members over a period of months. PLCU reimbursed all of the members for their losses. Davalos has agreed to pay restitution to PLCU for its losses, and to forfeit the contents of two frozen PLCU accounts, which hold a portion of his ill-gotten gains.
“This defendant used his position of trust to exploit elderly victims because he believed they would be easy to fool,” said U.S. Attorney Robert Brewer. “But this office was not fooled. We are dedicated to protecting the community from fraudsters and the defendant will pay a price for taking advantage of these seniors.”
“The Secret Service San Diego Field Office is committed to aggressively investigating financial crimes cases, especially those that target our most vulnerable citizens,” said Special Agent in Charge James E. Anderson Jr. – U.S. Secret Service San Diego Field Office. “I would like to thank the San Diego Police Department and Customs and Border Protection for their partnership and cooperation in this case.”
Davalos is scheduled to be sentenced on November 12, 2019 at 9:00 a.m., before U.S. District Judge Larry Alan Burns.
DEFENDANT Case Number 19-cr-2267-LAB
Samuel Davalos, Jr. Imperial Beach, CA Age: 28
SUMMARY OF CHARGES
Bank Fraud – Title 18, U.S.C., Section 1344
Maximum penalty: Thirty years in prison, $1 million fine (or twice the pecuniary gain or loss), restitution and forfeiture.
AGENCIES
U.S. Secret Service
Patient Recruiter Pleads Guilty in Multi-Million Dollar Tricare FraudRead the Press Release
Assistant U. S. Attorney Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – July 23, 2019
SAN DIEGO – Former U.S. Marine Bradley White pleaded guilty in federal court today to fraud charges, admitting that he participated in a scheme that bilked the military health care program known as TRICARE out of more than $65 million.
White, the sixth of eight defendants to plead guilty in the case so far, admitted as part of his guilty plea that he fraudulently recruited patients in return for a percentage of the amount TRICARE reimbursed for compounded medications that his sham patients ordered.
White was charged on June 20, 2019, and entered his guilty plea to conspiracy to commit health care fraud before U.S. Magistrate Judge Bernard G. Skomal. Sentencing is set for October 18, 2019 before U.S. District Judge Janis L. Sammartino.
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient requires a particular dosage or application or is allergic to a dye or other ingredient.
According to the guilty plea, a team of individuals, including White, worked to recruit and pay Marines, primarily from the San Diego area, and their dependents – all TRICARE beneficiaries – to obtain compounded medications that would be paid for by TRICARE. This information was sent to Choice MD, the Tennessee medical clinic that employed Drs. Carl Lindblad and Suzy Vergot. Drs. Lindblad and Vergot then wrote prescriptions for the TRICARE beneficiaries, despite never examining the patients in person. Once signed by the doctors, these prescriptions were not given to the beneficiaries, but sent directly to particular pharmacies controlled by co-conspirators, which filled the prescriptions and billed TRICARE at exorbitant prices. TRICARE then reimbursed the pharmacy, and which in turn paid kickbacks – as a percentage of the TRICARE reimbursement -- to the pyramid scheme of recruiters.
Both Dr. Lindblad and Dr. Vergot as well as Candace Craven, a nurse practitioner at Choice MD, have pleaded guilty for their roles in the conspiracy to commit health care fraud. CFK, Inc., the corporate owner of one of the pharmacies, has also pleaded guilty as part of this investigation.
Josh Morgan, another former Marine from San Diego, also pleaded guilty in March 2018 for his role in recruiting TRICARE beneficiaries to fraudulently receive these prescriptions.
According to court documents, between December 2014 and May 9, 2015 – the day that TRICARE stopped reimbursing for compounded medications – Drs. Lindblad and Vergot authorized 4,442 total prescriptions. Over this time, their co-conspirators billed TRICARE $65,679,512 for these prescriptions. For his part, White admitted that he recruited patients who billed TRICARE over $7.6 million, for which he was paid over $195,000.
White was the eighth defendant charged in relation to this fraud scheme and the sixth to plead guilty. The two remaining defendants are Jimmy and Ashley Collins, owners of Choice MD. That case, 18CR0432-JLS, is still pending.
DEFENDANT Case Number 19-CR-2318-JLS
Bradley White Age: 31 Oakley, CA
SUMMARY OF CHARGES
Conspiracy to Commit Health Care Fraud – Title 18, U.S.C § 1349
Maximum penalty: Ten years in prison and $250,000 fine or double loss amount
AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
IRS Criminal Investigation Division, Gulfport, MS
Federal Bureau of Investigation - Jackson, MS Field Office
Chula Vista Man Sentenced to 10 Years for Being Source of Fentanyl that Resulted in Non-Fatal Overdoses in AlpineRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – July 22, 2019
SAN DIEGO – A Chula Vista man was sentenced today in federal court to 10 years in prison for distributing fentanyl that led to the non-fatal overdoses of five people in Alpine, some of whom were revived by first responders with Naloxone.
In sentencing Joel Rodriguez of Chula Vista, U.S. District Judge Anthony J. Battaglia said the crimes were “very very serious” and drugs, like fentanyl, are “highly addictive and destructive to the population.”
According to court records, Rodriguez admitted that he obtained fentanyl from Mexico and then delivered it to another person for distribution in San Diego. Rodriguez knew that the substance was fentanyl and reminded his distributors that the substance was dangerous. Eventually, Rodriguez’s fentanyl led to the accidental overdoses of five individuals in Alpine on or about December 7, 2017. The individuals, who believed that they were using cocaine, ended up in the hospital. Some were treated at the scene with Naloxone – a drug that reverses the depression of the central nervous system and respiratory system caused by opioids. During the search of Rodriguez’s residence, agents found several baggies of cocaine and fentanyl, cutting agents, digital scales, and pay-owe sheets documenting drug deliveries and payments.
Rodriguez also admitted that he drove a vehicle containing cocaine on May 17, 2017 from San Diego County to Riverside County to deliver the bulk cocaine to another person for further distribution, months prior to his distribution of fentanyl.
“Buyer beware! These people thought they were using cocaine, not deadly fentanyl,” said U.S. Attorney Robert Brewer. “This is a strong sentence for a dealer who came close to pushing his unwitting customers to the point of no return. Dealers are on notice: We have an unyielding commitment to identify fentanyl dealers in our community in order to save lives. And users: Don’t play Russian Roulette with your life.”
Brewer thanked prosecutor Sherri Walker Hobson, the San Diego Sheriff’s deputies and detectives and agents from Homeland Security Investigations and the Drug Enforcement Administration for their work on this investigation which led to Joel Rodriguez’s arrest within days of the non-fatal overdoses. Brewer also thanked the first responders who revived the overdose victims.
“Our thoughts go out to the friends and families of the victims of Mr. Joel Rodriguez’s selfish crimes and greed,” said Juan Munoz, Acting Special Agent in Charge of Homeland Security Investigations in San Diego. “It is impossible to quantify the extent of the harm done by Rodriguez, but holding him accountable will continue to prove that our agents are dedicated to identifying and putting a stop to those engaged in the illegal smuggling of contraband, such as fentanyl.”
“Mr. Rodriguez made the decision to risk the lives of others to make a quick buck,” said DEA Special Agent in Charge Karen Flowers. “Five people almost lost their lives from the drugs provided by Mr. Rodriguez and countless others were impacted by his decision to traffic cocaine. Now Mr. Rodriguez will pay for his poor decisions by losing his freedom for 10 years during the prime of his life. His sentence should serve as yet another reminder: If you deal drugs, there will be consequences that will cost you your freedom.”
DEFENDANT Criminal Case No. 18CR0164
Joel Rodriguez 30 Chula Vista, California
SUMMARY OF CHARGES
Count 1: Possession of Cocaine with Intent to Distribute, in violation of 21 U.S.C. §841
Maximum penalties: Ten-year mandatory minimum to life in prison; $1 million fine
Count 2: Conspiracy to Distribute Fentanyl, in violation of 21 U.S.C. §841 and 846
Maximum penalties: Twenty years in prison; $250,000 fine
AGENCIES
San Diego County Sheriff’s Department
Homeland Security Investigations
U.S. Drug Enforcement Administration
San Diego District Attorney’s Office
Man Allegedly Makes Phone Threats to Pride Parade; Investigators Track and Link Him to Unsolved Bank RobberiesRead the Press Release
NEWS RELEASE SUMMARY – July 17, 2019
SAN DIEGO – A man who allegedly threatened to “kill all the gays and children” at the San Diego Pride parade was charged today with three bank robberies after San Diego Police detectives and FBI agents linked him to both the threats and the robberies dating back to 2016.
According to a federal complaint, Andre Lafayette Holmes robbed US Bank on Campo Road in Spring Valley on November 4, 2016; Mission Federal Credit Union in San Diego on June 14, 2018, and California Bank and Trust on Fifth Avenue, also in San Diego, on June 28, 2019. In the first crime he claimed to have a gun; in the second and third robberies he pointed a pistol at tellers, the complaint said.
FBI agents identified Holmes as the armed bank robber in three unsolved cases following threats he made to the San Diego Pride Parade organizers on July 10, 2019. In the first of two late-morning phone calls to pride organizers’ main line, a caller stated: “I think I’m going to have to kill all the gays and the children.” He then repeated, “I’m going to have to kill the f------ and children.” The employee asked, “Sir, what’s your name?” The caller replied: “I don’t like them” and “I hate the f------.” He then hung up. About four minutes later, he called back. “F--- Donald Trump. I hate Hillary. I hate f---. I’m going to shoot up the Pride event.” The male caller repeated the same statement approximately four times.
On July 11, San Diego Police Department investigators identified the phone number as belonging to Holmes. They determined that Holmes drives a 2009 Toyota minivan registered in his name. They located Holmes near Miramar College and conducted a traffic stop. He was in possession of the phone from which the threats were made, the complaint said.
During subsequent searches of Holmes residence and vehicle, investigators discovered evidence of the armed bank robberies, including a gray semi-automatic pistol, a rubber “old man” style mask, a large bag of cash and clothing believed worn by the bank robber, among other things. They also found a Big Gulp 7-Eleven mug consistent with the one used during two of the robberies.
In the first robbery, the complaint alleges that Holmes used a demand note which said: “We have guns! I will personally shoot anyone you alert! Don’t make me jump over the counter and kill innocent people. Big bills only and I’ll calmly leave. Money now!!!!” On the back of the note, it said: “I’m sorry, good man on hard times. Sincerely, Bank Robber.”
In the second robbery at Mission Federal Credit Union, Holmes pulled a semi-automatic pistol from his pocket and pointed it at a teller and demanded money, the complaint said. He then proceeded to demand money from a second teller. In the third robbery, Holmes again had a light-colored semiautomatic pistol and verbally demanded money.
Authorities are presently evaluating further charges for Holmes’ threats to the San Diego Pride Parade.
DEFENDANT Case Number 19mj2977
Andre Lafayette Holmes Age: 31 San Diego, California
SUMMARY OF CHARGES
Bank Robbery – Title 18, U.S.C., Section 2113(a)
Maximum penalty: 20 years
Armed Bank Robbery – Title 18, U.S.C., Section 2113(a) & (d)
Maximum penalty: 25 years
Brandishing a Firearm in Commission of Crime of Violence – Title 18, U.S.C., Section 924(c)
Maximum penalty: Life in prison;
Consecutive Mandatory Minimum: 7 years
AGENCY
Federal Bureau of Investigation
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.
Trafficker Admits Smuggling Large Quantities of Deadly Fentanyl, Methamphetamine, and Cocaine, Including More Than 450,000 Fentanyl PillsRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – July 15, 2019
SAN DIEGO – April Spring Kelly admitted in federal court today that she smuggled more than 450,000 fentanyl pills from Mexico into the United States during a nine-month conspiracy from February to October of 2018.
According to admissions in her plea agreement, Kelly smuggled the fentanyl pills through ports of entry in San Diego and Nogales, Arizona, for distribution to mid-level distributors in San Diego and Phoenix.
Kelly, a U.S. citizen living in Tijuana, also admitted to smuggling large quantities of fentanyl, methamphetamine and cocaine in her vehicle as she attempted to cross the international border at the San Ysidro Port of Entry on November 30, 2018. According to court documents, she admitted attempting to smuggle 36.24 pounds of methamphetamine, 37.83 pounds of cocaine, and 11.99 pounds of powdered fentanyl in her vehicle. She was arrested that day by U.S. Customs and Border Protection officials.
Sentencing is scheduled for October 11, 2019 at 9 a.m. before U.S. District Judge Janis Sammartino.
“San Diego is the gateway for fentanyl to the rest of the country, and we are working aggressively to close that gate, one smuggler and one distributor at a time,” said U.S. Attorney Robert Brewer. “With so many lives at stake, we are pursuing more of these cases than ever.”
Brewer praised federal agents from Homeland Security Investigations, the Drug Enforcement Administration and U.S. Customs and Border Protection, who are on the front lines of this fentanyl surge.
“Today’s guilty plea is an example of the significant results that can be achieved when law enforcement agencies form a great partnership and work diligently to bring a case to prosecution,” said Juan Munoz, Acting Special Agent in Charge for Homeland Security Investigations (HSI) in San Diego. “HSI will continue to investigate individuals who bring dangerous drugs such as fentanyl into the U.S. and endanger the families in our communities. We urge everyone to take the time to learn about these deadly drugs and take the steps necessary to protect their families and loved ones.”
“Deadly drugs like fentanyl are devastating families throughout San Diego,” said DEA Special Agent in Charge Karen Flowers. “April Kelly’s guilty plea today is a victory for all San Diegans. Kelly is only 38 years old and she will pay for her actions of pure greed by spending a very long time – potentially life - in prison. This should serve as a warning to anyone who traffics drugs: DEA will investigate and arrest you and the U.S. Attorney’s Office will prosecute you to the fullest extent of the law.”
DEFENDANT Case Number 18cr5463JLS
April Spring Kelly Age: 38 San Diego, California
SUMMARY OF CHARGES Case Number
Counts 1, 2 and 3 – Importation of Methamphetamine, Cocaine, and Fentanyl, in violation of 21 U.S.C. 841 and 846.
Maximum Penalty: Life in prison (10-year minimum mandatory); $10 million fine
Count 4 – Conspiracy to Distribute Fentanyl, in violation of 21 U.S.C. 841 and 846
Maximum Penalty: Life in prison (10-year minimum mandatory); $10,000,000 fine; supervised release; $100 special assessment).
INVESTIGATING AGENCIES
Homeland Security Investigations
Drug Enforcement Administration
Customs and Border Protection
Utah Man Sentenced for Computer Hacking CrimeRead the Press Release
Assistant U. S. Attorney John Parmley (619) 546-7957
NEWS RELEASE SUMMARY – July 2, 2019
SAN DIEGO – Austin Thompson of Utah was sentenced in federal court today to 27 months in prison for carrying out a series of so-called denial-of-service computer hacking attacks against multiple victims between 2013 and 2014. The defendant was also ordered to pay $95,000 in restitution to one of the victims - Daybreak Games, formerly Sony Online Entertainment.
A denial-of-service (DoS) attack occurs when legitimate users are unable to access information systems, devices, or other network resources due to the actions of a malicious cyber threat actor. Essentially the hacker floods the targeted host or network with traffic until the target cannot respond or simply crashes, preventing access for legitimate purposes.
According to the plea agreement, between December 2013 and January 2014, Thompson’s attacks, which flooded his victims’ servers with enough internet traffic to take them offline, were directed mainly at online gaming companies and servers, including then San Diego-based Sony Online Entertainment. Thompson typically used the Twitter account @DerpTrolling to announce that an attack was imminent and then posted “scalps” (screenshots or other photos showing that victims’ servers had been taken down) after the attack. The attacks took down game servers and related computers around the world, often for hours at a time. According to the plea agreement, Thompson’s actions caused at least $95,000 in damages.
The defendant, who is free on bond, was ordered to surrender to authorities on August 23 to begin his sentence.
“Denial-of-service attacks cost businesses and individuals millions of dollars annually,” said U.S. Attorney Robert Brewer. “We are committed to prosecuting hackers who intentionally disrupt internet access.” Brewer praised Assistant U.S. Attorney John Parmley and the FBI’s San Diego Field Office for their hard work on this case.
DEFENDANT Case Number 18cr4775JM
Austin Thompson Age: 23
SUMMARY OF CHARGES
Damage to a Protected Computer, 18 U.S.C. § 1030(a)(5)(A)
Maximum penalty: Ten years in prison, $250,000 fine
AGENCY
Federal Bureau of Investigation – San Diego Field Office
Defendants Admit Coordinated Fraud on San Diego Bankruptcy CourtRead the Press Release
Assistant U.S. Attorney Nicholas W. Pilchak (619) 546-9709 or Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924
NEWS RELEASE SUMMARY – July 2, 2019
SAN DIEGO – Two residents of Laguna Beach admitted today to perpetrating a complicated scheme to defraud the bankruptcy court using sham transactions, fake people, and lies under oath.
During a hearing this morning before U.S. Magistrate Judge Barbara L. Major, both Evan P. Dameshek and David Greg Leppo pleaded guilty to Bankruptcy Fraud.
Dameshek, 57, owned and operated TriPharma LLC, a Laguna Beach company with claims against Imaginetix, Inc.—a company in bankruptcy before U.S. Bankruptcy Judge Margaret Mann. When Judge Mann directed Imaginetix to pay TriPharma’s former attorney, who held the money based on a fee dispute, Dameshek and Leppo devised a scheme to defraud all of them. Specifically, Dameshek and Leppo admitted in their guilty pleas that they created a fake agreement to make it appear that $3.2 million of TriPharma’s claims were sold to Leppo’s offshore company, Dutch Harbour Financial.
To make the fake “purchase” seem real, Dameshek and Leppo arranged for Dameshek’s associate to wire $200,000 to Leppo’s company, which Leppo then used to “purchase” Tripharma’s claim. Dameshek admitted that he actually returned the “purchase” money to his associate the same day it was received, minus $40,000 that Leppo kept for himself.
Leppo, also 57, admitted to directing two of his employees to sign agreements on behalf of Dutch Harbour, and using the name “David Greg” instead of his real full name, in order to distance himself from the sham transaction.
Dameshek admitted that after completing the phony sale, he instructed Leppo to send a letter as “David Greg” to Imaginetix, demanding money on Dutch Harbour’s behalf, in violation of the bankruptcy court’s order. When Imaginetix refused, Dameshek posed as “Dutch Harbour” to contact Imaginetix’s creditors, and made the same demand.
Based on the fraud, a payment of over $282,000 was made to “Dutch Harbour” before the bogus scheme came to light. Dameshek, however, persisted with the fraud by filing a declaration as “Robert Paige” – a person he invented – falsely claiming that the sham purchase was a real transaction.
“White collar criminals cannot escape justice by dressing up their lies in complex transactions or overseas shell companies,” said U.S. Attorney Robert Brewer. “The entire judicial process depends upon witnesses telling the truth. Our office will hold accountable anyone who tries to defraud the court—whether by simple perjury, or an elaborate scheme like this one.”
“The FBI is dedicated to uncovering all criminal conduct in the cases we investigate,” said Special Agent in Charge Scott Brunner. “This complicated fraud scheme, which has the effect of degrading the integrity of the bankruptcy system, is another example of the FBI’s determination to ensure no stone goes unturned to reveal the illegal acts of Defendants like Mr. Leppo and Mr. Dameshek.”
Dameshek and Leppo are scheduled to be sentenced on September 16, 2019, before U.S. District Judge Anthony J. Battaglia.
Leppo was also one of 12 individuals indicted in July 2016 for his involvement in Segal’s Lucky Lady Sports Book. On April 4, 2019, Leppo pleaded guilty to running an illegal gambling business in that matter in case number 16-cr-1695-BEN, which is now set for sentencing on September 16, 2019, before United States District Judge Roger T. Benitez.
DEFENDANTS Case Number 19-cr-0903-AJB
Evan P. Dameshek Laguna Beach, CA Age: 57
David Greg Leppo Laguna Beach, CA Age: 57
SUMMARY OF CHARGES
Bankruptcy Fraud – Title 18, U.S.C., Section 157
Maximum penalty: Five years in prison, $250,000 fine (or twice the pecuniary gain or loss), restitution and forfeiture.
DEFENDANT Case Number 16-cr-1695-BEN
David Greg Leppo Laguna Beach, CA Age: 57
SUMMARY OF CHARGES
Illegal Gambling Business – Title 18, U.S.C., Section 1955
Maximum penalty: Five years in prison, $250,000 fine (or twice the pecuniary gain or loss), forfeiture.
AGENCY
Federal Bureau of Investigation
San Diego Contractor Sentenced for Defrauding Federal Agencies, Agrees to Pay $3.2 Million to Resolve Civil AllegationsRead the Press Release
NEWS RELEASE SUMMARY – June 28, 2019
San Diego contractor Andrew Otero and his company A&D General Contracting were sentenced today in San Diego federal court by U.S. District Judge John A. Houston. In November, a federal jury convicted A&D and Otero of fraudulently obtaining over $11 million in government contracts which had been set aside for service-disabled veteran-owned small businesses (SDVOSBs).
Judge Houston sentenced Otero to 18 months in custody and ordered him to pay $400,000 in criminal fines. Judge Houston ordered A&D to pay $1.5 million in criminal fines, and imposed criminal forfeiture of $334,561.
Earlier this month, A&D and Otero settled civil False Claims Act allegations arising out of the same conduct, agreeing to pay the United States $3,259,679. Payment of the civil settlement amount will offset the criminal fines imposed by Judge Houston.
The evidence at trial proved that A&D and Otero created a fraudulent joint venture to secure government contract work. To appear qualified for SDVOSB contracts, Otero and veteran Roger Ramsey initially executed an agreement to create the joint venture, which stated that Ramsey’s company (Action Telecom) would manage the joint venture, employ a project manager for each of the set-aside contracts, and receive the majority of the profits.
However, as proved at trial, Otero and Ramsey signed a secret side agreement that made clear the joint venture was ineligible under the SDVOSB program. The side agreement proved the parties formed the joint venture so that A&D could simply “use the Disabled Veteran Status of Action Telecom” to bid on contracts. The side agreement stated that A&D – not Action Telecom – would run the construction jobs, and “A&D will keep 98% of every payment; Action Telecom will receive 2% of every payment.”
In imposing the sentences, Judge Houston emphasized that Otero’s and A&D’s scheme took contracts away from veterans who “bore the weight of war.” Defendants’ crimes harmed disabled veterans by diverting contracts that should have been awarded to legitimate SDVOSBs, and “snatched” contracts “right out of their hands.” Judge Houston also stated that the sentences would deter government contractors from similar crimes, and make clear that defrauding the programs was not “worth the gamble.”
“The United States sets aside important contract work for service-disabled veterans as one small way to recognize their patriotism and repay the enormous debt we owe them for their service,” said United States Attorney Robert S. Brewer, Jr. “Our office will continue to protect these programs and hold those who abuse them fully accountable.”
The criminal case was prosecuted by Assistant United States Attorneys Rebecca Kanter and Aaron Arnzen. The civil case was brought by Assistant United States Attorneys Joseph Price and Doug Keehn.
CORPORATE DEFENDANTS
A&D General Contracting, Inc., Santee, California
INDIVIDUAL DEFENDANTS
Andrew Otero El Cajon, CA
Criminal Case No. 17CR0879-JAH
Civil Case No. 15CV0441-JAH
SUMMARY OF CHARGES
Count 1: Conspiracy to defraud and commit offenses (18 U.S.C. § 371)
Maximum penalties: 5 years’ imprisonment; 3 years’ supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $10
Count 2-4: Major fraud against the United States (18 U.S.C. § 1031)
Maximum penalties: 10years’ imprisonment; supervised release; a fine of $1,000,000 per count ($5,000,000 total); and a mandatory special assessment of $100
Counts 5-7: Wire fraud (18 U.S.C. § 1343)
Maximum penalties: 20 years’ imprisonment; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $100
Counts: 10, 14:
False statements (18 U.S.C. § 1001)
Maximum penalties: 5 years’ imprisonment; a fine; and a mandatory special assessment of $100
AGENCIES
Department of Veterans Affairs, Office of Inspector General
Former U.S. Navy Member Sentenced for Credit Card Fraud and Identity Theft SchemeRead the Press Release
NEWS RELEASE SUMMARY – June 28, 2019
SAN DIEGO – Fedrick Emery of San Diego was sentenced in federal court today to 45 months in custody and 3 years of supervised release for a fraud scheme he began while an active duty member of the U.S. Navy. According to his plea agreement, Emery and his co-conspirators obtained credit card numbers belonging to real individuals and created counterfeit credit cards and gift cards that Emery then used at over twenty Marine Corps Exchange (“MCX”) locations and Navy Exchange (“NEX”) locations in San Diego and around the country. Between April 2017 and February 2018, Emery’s fraud resulted in a loss of over $75,000 to the MCX and NEX.
At the same time, from approximately December 2017 to May 2018, Emery stole the identities of four individuals and used their personal information to obtain car loans, personal loans, and credit cards. With the stolen information, Emery purchased at least seven luxury automobiles and racked up thousands of dollars in debt that he immediately defaulted on. In all, Emery’s bank fraud resulted in a loss of over $290,000 to nine different banks.
“The financial toll exacted by identity theft can be crippling, and the emotional trauma can be equally devastating,” said United States Attorney Robert S. Brewer. “These were not victimless crimes. This office will vigorously prosecute those who cavalierly steal the identities of honest citizens and compromise the integrity our financial institutions.”
“This plea is the result of successful investigative efforts between NCIS and our partner agencies,” said NCIS Southwest Field Office Special Agent in Charge Garrett Waugh. “Fedrick Emery used fraudulent credit cards to defraud U.S. Navy and U.S. Marine Corps Exchanges, and used the identities of numerous unsuspecting victims to obtain bank loans and purchase vehicles. NCIS appreciates the assistance of our partners in combating fraud that decreases Department of the Navy readiness and wastes taxpayer money.”
According to court documents, during the conspiracy Emery and his co-conspirators referred to what they were doing as “New Money.” Emery flaunted his unearned wealth on Instagram, posting pictures of himself in the luxury automobiles he purchased using the identities of others, and with stacks of cash. Defendant was discharged in absentia from the U.S. Navy under other than honorable conditions in October 2017.
DEFENDANT Case Number 18cr3230-JLS
Fedrick Emery Age: 23 San Diego, CA
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: 5 years’ imprisonment and $250,000 fine
Aggravated Identity Theft – Title 18 U.S.C., Section 1028A
Penalty – Mandatory two years consecutive imprisonment, and $250,000 fine
AGENCY
Naval Criminal Investigative Service
United States Secret Service
El Cajon Police Department
Defendant Sentenced for Lying to the FBI and Obstructing Justice as Part of a Scheme to Extort a Federal Bankruptcy JudgeRead the Press Release
NEWS RELEASE SUMMARY – June 27, 2019
SAN DIEGO – Michael Enriquez was sentenced in federal court today for lying to the Federal Bureau of Investigation by falsely implicating a federal bankruptcy judge in prostitution, and further obstructing justice by fabricating emails and an electronic telephone contact to corroborate his lies.
U.S. District Judge Cynthia Bashant sentenced Enriquez to 27 months in prison, payment of a $50,000 fine and a $200 special assessment, and three years of supervised release, during which he must perform 250 hours of community service. In sentencing Enriquez, Judge Bashant noted that his conduct “was a lot more sophisticated than someone who just told a lie” and was the type of obstruction scheme that “threatens the whole judicial system.”
“Attempts to extort a federal judge with malicious lies are a direct attack on the Rule of Law, and today’s sentence reflects that such depraved criminal activity will be punished harshly,” commented Robert S. Brewer, United States Attorney for the Southern District of California.
Paul D. Delacourt, Assistant Director in Charge of the FBI’s Los Angeles Field Office, said, "Mr. Enriquez provided the FBI with false information about a sitting federal bankruptcy judge but, following a thorough investigation, the FBI determined the judge had not engaged in the alleged activity and that Mr. Enriquez had knowingly lied to the FBI on numerous occasions and obstructed justice. The FBI will not tolerate those who attempt to undermine our judicial process for their own personal benefit. In this case, the FBI's fact finding resulted in the exoneration of a wrongly accused judge and the prosecution of Mr. Enriquez."
As detailed in the public record, Enriquez concocted these lies in an effort to assist DB, a litigant/debtor in an involuntary bankruptcy proceeding involving corporate entities connected to filmmaking. Apparently believing that the presiding bankruptcy judge favored his creditors, on multiple occasions, DB expressed to Enriquez a desire to disqualify the bankruptcy judge from the case. To help DB turn the tide of the bankruptcy proceeding, Enriquez falsely told DB that he had personal knowledge that the bankruptcy judge had engaged in prostitution. To corroborate this account, Enriquez created fake email records of the bankruptcy judge requesting escort services from an online escort service. Defendant also input the judge’s name and chamber’s telephone number into his phone contacts in an effort to corroborate that the judge was, in fact, a client of such services. After creating this bogus paper trail, Enriquez forwarded the emails to DB, knowing that the false accusations and fake emails would likely be used to extort the bankruptcy judge or otherwise influence the bankruptcy proceedings.
In or about early 2013, the relationship between Enriquez and DB soured. In an effort to seize some advantage from his duplicity, Enriquez identified DB’s creditors in the bankruptcy proceeding and arranged to meet two creditors, DM and PP, in New York City in February 2013. Unbeknownst to DB, at this meeting, Enriquez told DM and PP that DB had obtained information that the bankruptcy judge had frequented prostitutes, and that DB intended to use that information to influence the outcome of the bankruptcy proceedings. Enriquez did not tell DM and PP that he was the source of the information, that the information was bogus, or that he had fabricated the corroborating documents.
When PP suggested that he could help DM and PP by relaying his allegations to the FBI, Enriquez negotiated a $100,000 payment, which ultimately never materialized. Thereafter, on or about April 25, 2013, May 17, 2013, and on multiple occasions until in or about July 2016, defendant knowingly and willfully made material false and fraudulent statements to the FBI falsely implicating the bankruptcy judge in prostitution, and provided the FBI with emails and an electronic telephone contact that he had fabricated to corroborate his story.
A multi-year investigation by the FBI ensued, focusing initially on the allegations of bribery, extortion, and the conduct of the bankruptcy judge. Eventually, through painstaking effort, agents unearthed the truth: For no discernible reason at all, through malicious lies and fabricated documents, Enriquez attacked the reputation of a respected federal bankruptcy judge. U.S. Attorney Brewer commended the FBI agents for rigorously unraveling defendant’s lies and deception, and ultimately vindicating our judicial system.
DEFENDANT Case Number 18CR3575-BAS
Michael Enriquez Age: 55 San Antonio, TX
SUMMARY OF CHARGE
False Statements -- Title 18, U.S.C., Sec. 1001
Obstruction of Justice -- Title 18, U.S.C., Sec. 1519
AGENCY
Federal Bureau of Investigation
Federal Jury Convicts Former Honolulu Prosecutor Katherine Kealoha, Former Police Chief Louis Kealoha and Two Police Officers of CorruptionRead the Press Release
Special Attorneys Michael Wheat (619) 546-8437, Joseph Orabona (619) 546-7951, Janaki Gandhi (619 546-8817) and Colin McDonald (619) 546-9144
HONOLULU, Hawaii – A federal jury has found former Honolulu Deputy Prosecutor Katherine Kealoha and her husband, former Honolulu Police Chief Louis Kealoha, guilty of abusing their power by conspiring with two police officers to frame her uncle for a crime he did not commit in a desperate attempt to discredit his claim that the Kealohas stole a substantial amount of money from him and his mother.
Following a six-week trial that included testimony of 70 witnesses, the jury deliberated for one day and convicted the Honolulu power couple and police officers Derek Hahn and Minh-Hung “Bobby” Nguyen of conspiracy and three counts of attempted obstruction of an official proceeding. The jury found that the officers helped the Kealohas facilitate the set up and cover up involving the uncle, Gerard Puana.
“The Kealohas’ extraordinary greed inspired astonishing corruption,” said U.S. Attorney Robert Brewer. “The audacity of this couple to use the power vested in them as law enforcement officials to fund a lavish lifestyle and satisfy their personal vendettas was unconscionable. These two were supposed to be the good guys. They were supposed to enforce the law - not break it. Instead, they broke the community’s faith in a monumental way. This city has been harmed by their deception and greed, but the jury has spoken, and it has loudly said NO to corruption. NO to abuse of power. NO to special treatment. NO to injustice.”
“Unfortunately there are no winners in this case,” said FBI Acting Special Agent in Charge Rafael A. Riviere. “The betrayal of trust by the former prosecutor and former Chief of Police will linger for some time. However, justice has been served and the jury, through this verdict, has said that no one is above the law and this behavior will not be tolerated in the State of Hawaii. The FBI would like to thank the United States Attorney Office (USAO) Hawaii, USAO for the Southern District of California, as well as the men and woman of the jury for their swift and decisive verdict.”
During trial, the prosecution relied on current and former police officials, federal agents, victims Gerald and Florence Puana, experts, city and county officials, defense attorneys, and Puana family members, among others, as witnesses to prove the story of corruption, abuse of power, greed and manipulation.
The financial entanglement with the uncle started back in 2007, when Katherine Kealoha told her uncle she would safeguard and invest his substantial savings in an her alleged hui. To give the false appearance of investment returns, she periodically withdrew cash from the bank account holding the uncle’s money and paid the money as a “return” on his investment. Despite his requests, Katherine Kealoha never returned over $70,000 of his investment principal.
In 2009, another financial opportunity arose and Katherine Kealoha seized the moment to insert herself by advising her grandmother, Florence Puana, on how to help her son (the same uncle who had invested money with Katherine Kealoha) purchase a condominium despite his lack of credit. Katherine Kealoha’s solution was a convoluted five-step process: (1) the grandmother would obtain a reverse mortgage; (2) Katherine Kealoha would use the proceeds to buy the condo outright; (3) the Kealohas would use the remaining funds to “consolidate” their debts (thereby allowing them to improve their credit); (4) the Kealohas would obtain a mortgage on the condo and the uncle would make mortgage payments to them; and (5) the Kealohas would repay the reverse mortgage within three to six months.
The grandmother agreed to Katherine Kealoha’s plan, and obtained a reverse mortgage totaling more than $513,000. A portion of the funds was used to purchase a condo; the remainder, approximately $153,000, was supposed to be used to consolidate the Kealohas debts in order for the Kealohas’ to obtain a mortgage on the condo. However, Katherine Kealoha kept none of her promises. Instead, she spent the entire amount within six months for her and her husband’s lavish lifestyle. Katherine never obtained a mortgage on the condo; however, she collected mortgage payments from her uncle and again pocketed most of his money. Lastly, she did not repay the reverse mortgage which continued to substantially increase and diminish the equity in grandmother’s family home. The grandmother and uncle’s discovery of this skyrocketing loan balance led to a confrontation with the Katherine Kealoha, and their subsequent civil lawsuit. This dispute motivated the Kealohas to frame the uncle for the mailbox theft, have the grandmother declared incompetent, and discredit both the uncle and grandmother in the civil case.
The Kealohas used the grandmother’s stolen money to pay a variety of personal expenses, including their mortgage and tens of thousands of dollars in bank loans; car payments for a Mercedes and a Maserati; Elton John concert tickets; travel expenses, restaurant meals and a trip to Disneyland; donations to charity; and a $23,000 brunch tab at the Sheraton Waikiki to celebrate Louis Kealoha’s induction as Honolulu Police Chief in 2009.
The uncle and grandmother suspected they had been duped and began to voice their concerns and seek legal remedies by filing a civil lawsuit, accusing the Kealohas of stealing their money. The Kealohas sought to discredit the Puanas and orchestrated an elaborate cover up that involved falsely portraying the uncle as a drug-addicted criminal, and the grandmother as an incompetent senior who needed a financial guardian. To protect their public images and conceal their greed, the Kealohas and two police officers from the elite Criminal Intelligence Unit framed the uncle for stealing the Kealohas’ mailbox, supposedly to obtain bank statements from a joint account held by Katherine Kealoha and her grandmother - statements that were relevant to the civil lawsuit. The alleged theft sparked a police investigation and federal prosecution that resulted in a mistrial against the uncle. The idea was to discredit the uncle by giving him a felony conviction so that the civil jury would never believe his testimony.
The mistrial in the uncle’s federal case resulted in an FBI investigation into the civil rights violations of the uncle. During the FBI investigation, the Kealohas and the two police officers continued to engage in a conspiracy to obstruct the FBI and the federal grand jury seeking to uncover the truth behind this set up and cover up. This led to their indictment in October 2017.
Today, the jury found that the Kealohas used their considerable power plus members of the police department’s elite Criminal Intelligence Unit to frame him for that bogus theft of their mailbox on June 21, 2013. The evidence demonstrated that the defendants staged the “theft,” then selectively edited the grainy surveillance video to conceal their preparation of the mailbox for the taking, falsely identified Gerard Puana as the culprit captured by the video, falsified police reports, withheld or failed to investigate critical evidence, and lied to federal investigators and prosecutors to frame the uncle. The defendants were also involved in the destruction of surveillance footage contained on hard drives from the case by recording over it with six days of a ceiling and office space at police headquarters. At one point, the Kealohas assigned approximately 30 Honolulu police officers to conduct 24-hour surveillance on Gerard Puana.
But according to key evidence presented by the prosecution, the Puanas had no motive to steal a mailbox to obtain bank statements. The evidence showed they had already obtained the bank statements in question in February of 2013 – four months prior to the mailbox theft on June 21, 2013. Katherine Kealoha knew that she had closed that joint bank account on January 24, 2013, and the last statement was mailed to Katherine’s post office box in Kahala in February 2013 – not to her residence where the mailbox was stolen.
“As we’ve often seen, the cover up was worse than the original crime,” U.S. Attorney Brewer said. “The most troubling aspect of this case was the way these powerful defendants manipulated the justice system for their own purposes.”
An indignant Katherine Kealoha responded to the accusations of her financial fraud in a letter to her grandmother that prosecutors presented to the jury as a roadmap to her motives:
I WILL seek the highest form of legal retribution against ANYONE and EVERYONE who has written or verbally uttered those LIES about me! They will rue the day that they decided to state these TWISTED LIES!
The jury found that Katherine Kealoha made good on that promise.
Chief U.S. District Judge J. Michael Seabright of the District of Hawaii, who presided over the trial, set sentencing for Katherine Kealoha on October 7, 2019 at 1:30 p.m.; Louis Kealoha on October 15, 2019 at 2:15 p.m.; Derek Hahn on October 21, 2013 at 1:30 p.m.; and Minh-Hung “Bobby” Nguyen on October 28, 2019 at 1:30 p.m.
During the hearing, the prosecution moved to remand Katherine Kealoha. The judge scheduled a detention hearing for June 28, 2019 at 10 a.m. The other defendants were allowed to remain free until sentencing.
The Kealohas are facing a second trial on October 21, 2019 on charges of bank fraud, aggravated identity theft, and obstruction of justice in connection with the alleged theft of a $167,000 inheritance of two children for whom Katherine Kealoha served as financial guardian. Katherine Kealoha also faces charges related to allegations that she and her brother, Rudolph Puana, trafficked in opioids and that Kealoha used her position as a Deputy Prosecutor to hide it.
U.S. Attorney Brewer praised prosecutors Michael Wheat, Joseph Orabona, Colin McDonald, Janaki Gandhi, former prosecutor Eric Beste and FBI agents in Honolulu for their excellent work on this case.
DEFENDANTS Case Number 17cr0582-JMS
Katherine P. Kealoha Age: 48 Honolulu, Hawaii
Louis M. Kealoha Age: 58 Honolulu, Hawaii
Derek Wayne Hahn Age: 47 Honolulu, HI
Minh-Hung “Bobby” Nguyen Age: 45 Kaneohe, Hawaii
SUMMARY OF CHARGES
Count 1
Conspiracy to Commit Offenses Against the United States – Title 18, U.S.C., Section 371
Maximum penalty: Five years imprisonment, $250,000 fine
Guilty – Katherine P. Kealoha, Louis M. Kealoha, Derek Wayne Hahn, Minh-Hung “Bobby” Nguyen
Counts 2, 6 and 8
Obstruction of Official Proceeding – Title 18, U.S.C., Section 1512 (c)
Maximum penalty: Twenty years’ imprisonment, $250,000 fine
Guilty – Katherine P. Kealoha (Counts 2, 6, 8); Louis M. Kealoha (Counts 2, 6, 8); Derek Wayne Hahn (Counts 2, 6, 8); Minh-Hung “Bobby” Nguyen (Counts 2, 6, 8)
AGENCY
Federal Bureau of Investigation
Honolulu, Portland, and San Diego Divisions