Southern District of California
Press releases recorded for this federal judicial district.
U.S. Attorney’s Office and DOJ’s Civil Rights Division Host Roundtable on Sexual Harassment in HousingRead the Press Release
NEWS RELEASE SUMMARY – June 25, 2019
The U.S. Attorney’s Office for the Southern District of California and the U.S. Department of Justice (DOJ) Civil Rights Division hosted a roundtable today for community organizations, U.S. Attorney Robert S. Brewer, Jr. announced. The event included local law enforcement agencies, legal aid offices, fair housing organizations, and community groups that work with individuals who use transitional housing. Each organization invited has regular contact with Southern California’s most vulnerable populations, who could also become victims of sexual harassment in housing.
“Sexual harassment in housing can be even more egregious than harassment in the workplace,” U.S. Attorney Brewer said. “Landlords and property managers cannot be permitted to use their power over housing as a weapon to extort sexual favors from tenants. We’re extremely proud to be holding a meaningful discussion with community partners about how to combat this serious problem.”
While most people are familiar with the problem of sexual harassment in the workplace, harassment also occurs in the housing context, and the Fair Housing Act prohibits it. Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often affects the most vulnerable populations - single mothers, women who are financially unstable, and women who have suffered sexual violence in their past. And these women often do not know where to turn for help.
The U.S. Attorney’s Office is working closely with the DOJ Civil Rights Division to ensure people are aware of options to help victims experiencing sexual harassment or who experienced sexual harassment in housing in the past. Often it is community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters and transitional housing providers, that are in the best position to identify housing abuses and recommend that victims report sexual harassment to DOJ’s Civil Rights Division. By increasing awareness and building strong partnerships, we can better combat this problem in our community.
Each year DOJ brings cases involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures. The case filed against San Diego landlord Larry Nelson earlier this month is illustrative. The lawsuit, filed in the U.S. District Court for the Southern District of California, alleges that Nelson engaged in sexual harassment and retaliation of female tenants from at least 2005 to the present, by, among other things, engaging in unwelcome sexual touching, offering to reduce monthly rental payments in exchange for sex, making unwelcome sexual comments and advances, making intrusive and unannounced visits to female tenants’ homes to further his sexual advances, and evicting or threatening to evict female tenants who objected or refused his sexual advances.
The roundtable is an integral part of a DOJ initiative that seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts - both among victims and those they may report to - and collaborate with federal, state, and local partners to increase reporting and help women quickly and easily connect with federal resources. DOJ encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing: [email protected].
Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.
Federal Jury Convicts Ramona Man for Heroin Distribution Resulting in DeathRead the Press Release
NEWS RELEASE SUMMARY – June 25, 2019
SAN DIEGO – Maxwell Joseph Gaffney, aged 25, of Ramona, California, was convicted by a federal jury late yesterday of distributing the heroin that resulted in the death of Kyle J. Rodriguez, who was 23 years old when he overdosed. The verdict, delivered after two hours of jury deliberations, followed a week-long trial before U.S. District Judge Michael M. Anello.
Evidence at trial revealed that on February 17, 2017, after months of sobriety confirmed by regular random drug screenings, Rodriguez was found by his girlfriend collapsed in the bathroom of his parents’ Ramona home, surrounded by burned aluminum foil, a plastic straw and lighter. These were familiar signs of Rodriguez’s former life wrestling with substance use disorder. But in February 2017, Rodriguez had made positive inroads: he had a full-time job in construction, a girlfriend he was considering marrying, and a rekindled relationship with his father that was formerly splintered by his prior heroin use. When he was found, Rodriguez’s mother, a former cardiac nurse, immediately performed CPR to resuscitate her son. Her efforts and the subsequent efforts of paramedics failed. At 3:03 a.m. that morning, Kyle Rodriguez was gone.
Authorities charged Gaffney after an investigation revealed text messages that established the following: Gaffney had supplied heroin to Rodriguez hours before his collapse; Gaffney had directed Rodriguez to put the money for the heroin into Gaffney’s mailbox; and Rodriguez’s blood contained heroin metabolites at the time of his death. At trial, the defense contended that Rodriguez had another source of heroin supply and that the heroin in Rodriguez’s blood was not the heroin supplied by Gaffney. Further, the defense contended that Rodriguez’s alcohol consumption prior to and during the concert he attended the evening of his death, which resulted in a blood alcohol level of .12, and a combination of other factors, including but not limited to heroin, caused his death.
Both the San Diego Deputy Medical Examiner, Dr. Abubakr Marzouk, and a Board Certified Medical Toxicologist/Emergency Medicine doctor testified for the United States that the actual cause of Rodriguez’s death was the heroin and that, but for his use of heroin, Rodriguez would not have died. In explaining the difference between the impact of the heroin and the alcohol consumed by Rodriguez, the United States’s expert likened the heroin to a “shotgun blast to the heart” and the alcohol to a “pin-prick.” As to the source of the heroin, the email exchange between Gaffney and Rodriguez showed that Gaffney supplied Rodriguez with approximately a half of a gram plus “a little extra B” -- black tar heroin. Neither a search of Rodriguez’s cellular telephone nor other evidence introduced at trial revealed any another consummated heroin transaction by Rodriguez with any other supplier near the time of Rodriguez’s death.
“The U.S. Attorney’s Office will zealously work to hold dealers accountable for overdose deaths that result from their actions,” said U.S. Attorney Robert S. Brewer, Jr. “These purveyors of poisons are killing our citizens and tearing apart the fabric of our families. We must continue to combat the opioid crisis by every possible means at our disposal.”
“The results in this case are a testament to the collaborative efforts of the San Diego County Sheriff's Department and the U.S. Attorney’s Office,” said Lt. Ken Jones of the Sheriff's Ramona Substation. “This is a significant victory as we partner to fight the opioid crisis in our community."
Gaffney is set to be sentenced on September 23, 2019 before Judge Anello. This case was handled in court by Assistant United States Attorneys Timothy Coughlin and Larry Casper.
DEFENDANT Case Number 17-cr-3330-MMA
Maxwell Joseph Gaffney Age: 25 Ramona, California
SUMMARY OF CHARGE TO WHICH GUILTY PLEA ENTERED
Distribution of Heroin Resulting in Death – Title 21 U.S.C. Section 841(b)(1)(C)
Maximum Penalty – Mandatory Minimum of 20 years and a maximum of life
INVESTIGATING AGENCIES
San Diego Sheriff’s Department
San Diego Sheriff’s Department Regional Crime Lab
San Diego Medical Examiner’s Office
San Diego District Attorney’s Office
United States Attorney’s Office
Trafficker Pleads Guilty to DistributingThousands of Fentanyl PillsRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – June 20, 2019
SAN DIEGO – Marcell Travon Robinson III of Riverside admitted in federal court today that he distributed thousands of fentanyl pills during a three-year period to multiple drug dealers in Southern California.
Robinson pleaded guilty to conspiracy to distribute fentanyl and possession of fentanyl with intent to distribute. He faces a 10-year minimum mandatory sentence to life in custody. He also agreed to forfeit $148,334 in cash and several firearms that were seized during the operation.
According to court records, Robinson was arrested by Naval Criminal Investigative Service agents in October 2018, following their investigation of fentanyl distributors. Homeland Security Investigation Special Agents worked with NCIS during the operation.
His sentencing is scheduled for August 23, 2019 at 8:30 a.m. before U.S. District Judge Gonzalo Curiel.
“This is a very serious warning to dealers and users: You are gambling with your lives,” said U.S. Attorney Robert Brewer. “To dealers, my office is very aggressively pursuing fentanyl distributors. To users, the drugs you are taking probably are not what you think. They are likely to be laced with deadly fentanyl, and may be the last thing you ever do. Don’t make this costly mistake.”
“This plea comes on the heels of a critical seizure of fentanyl-laced pills sometimes being sold to users who presumed they were legitimate pills of oxycodone. Having this individual off the streets and away from being able to distribute these fatal drugs was a joint effort. The NCIS Southwest Field Office appreciates the assistance of our partners at HSI and CBP Air Division during the execution of multiple operations during the course of the investigation.”
DEFENDANT Case Number 18cr5114
Marcell Travon Robinson III Age: 31 Riverside, California
SUMMARY OF CHARGES Case Number
Count 1 – Conspiracy to Distribute Fentanyl, in violation of 21 U.S.C. 841 and 846
Maximum Penalty: Life in custody (Ten year minimum mandatory); $10 million fine
Counts 2 and 3 - Possession of Fentanyl with Intent to Distribute, in violation of 21 U.S.C. 841
Maximum Penalty: life in custody (Ten year minimum mandatory); $10,000,000 fine; supervised release; $100 special assessment).
INVESTIGATING AGENCIES
Naval Criminal Investigative Service
Homeland Security Investigations
Leader of International Money Laundering Organization Pleads GuiltyRead the Press Release
Assistant U. S. Attorneys Blanca Quintero and Daniel Silva (619) 546-7118
NEWS RELEASE SUMMARY – June 18, 2019
SAN DIEGO – Manuel Reynoso Garcia of Tijuana pleaded guilty in federal court today, admitting that he led an international money laundering organization that moved more than $19 million in cash from the United States to bank accounts controlled by shell companies in Mexico.
The FBI’s multi-year investigation targeted Reynoso as one of the key leaders of the Tijuana- and San Diego-based money laundering organization. Reynoso, the last of eight defendants to plead guilty in the case, admitted laundering drug trafficking proceeds on behalf of Mexican-based organizations, including the Sinaloa Cartel, through unlicensed money transmitting businesses. As a result of this case, the organization has been dismantled.
Between 2014 and 2017, the defendant admitted that the conspiracy employed various sophisticated money laundering techniques with the goals of distancing his organization, and the criminal organizations he worked for, from the transactions. Through the use of funnel accounts, bulk cash deposits by paid third-parties, unlicensed money transmitting businesses, shell companies, and various layers of transactions that provided no legitimate business purpose, nor provided any commercial value, Reynoso was able to turn cash located in various U.S. cities into funds in Mexican financial institutions – all for a fee.
The money laundering organization recruited individuals to serve as “funnel account holders” – that is, nominee accountholders in Southern California, primarily in San Diego. Other members of the organization based in Southern California and Northern Mexico, known as “couriers,” travelled to cities throughout the United States to provide a cash pick up and transport service for bulk cash proceeds of unlawful activity in amounts that ranged between $150,000 and $600,000. Once in possession of the money, the couriers deposited the money in smaller increments into the nominees’ funnel accounts, and eventually transferred the funds to shell corporations managed by the organization at Mexican financial institutions. Once in Mexico, the funds ultimately made their way to representatives of the Sinaloa Cartel and other criminal organizations.
“We are making it as difficult as possible for drug traffickers to finance and profit from their crimes,” said U.S. Attorney Robert Brewer. “This investigation has made sure that the Sinaloa Cartel and others like it have one less way to wash their dirty money.”
“With this final conviction, Reynoso’s money laundering organization has been dismantled,” said FBI Special Agent in Charge Scott Brunner. “Shutting down illegal cash proceeds returning to the drug cartels is like stopping the blood flow to the heart of these major criminal enterprises. The FBI will continue to strike at the heart of dangerous drug trafficking organizations in order to keep our communities safe.”
“Money launderers seeking to introduce illegally-generated funds into the United States financial system through bulk cash deposits, couriers, and funnel accounts will not be tolerated by the federal government,” stated Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation. “The IRS is proud to share its hallmark financial investigative expertise in this and other increasingly sophisticated financial investigations.”
Sentencing is scheduled for September 16, 2019, before U.S. District Judge William Q. Hayes.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise of federal, state and local law enforcement. 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. This case is being prosecuted by Assistant U.S. Attorneys Blanca Quintero and Daniel Silva.
DEFENDANT Case Number 17-CR-2203-WQH
Manuel Reynoso Garcia Age: 63 Tijuana, Mexico
SUMMARY OF CHARGES*
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison, $500,000 fine
AGENCIES
Federal Bureau of Investigation’s San Diego Cross Border Violence Task Force
IRS Criminal Investigations
Hell’s Angels Gang Member Sentenced for Methamphetamine DistributionRead the Press Release
Assistant U. S. Attorney Brandon Kimura (619) 546-9614
NEWS RELEASE SUMMARY – June 17, 2019
SAN DIEGO – Obediah Breer, Escondido resident and member of the Hell’s Angels motorcycle gang, was sentenced yesterday in federal court to 12 years in prison for distributing methamphetamine.
The charges stemmed from two incidents in August and September of 2018 outlined in his January plea agreement. Breer was arrested on state charges on August 15, 2018, when the Oceanside Police Department’s SWAT team executed a search warrant on his Escondido residence and discovered cocaine, methamphetamine, pharmaceutical pills and a firearm.
The warrant was based on an incident in which Breer was alleged to have brandished a firearm during a traffic encounter with other motorists on August 5, 2018, and then evaded police officers in a subsequent chase.
According to a federal complaint, during the search of his home Breer acknowledged evading officers in the August 5 traffic incident. He also admitted that he possessed the .22 caliber firearm, and that he is a member of the Hell’s Angels motorcycle gang. He was arrested.
The second incident occurred on September 11, 2018, when Breer was out of custody on pretrial release for the August 15 offense. Escondido Police Department officers conducted a traffic stop of Breer on his motorcycle and discovered that he was in possession of methamphetamine and cocaine.
State and federal prosecutors agreed at that point the case should be prosecuted federally.
In all, the substances possessed by the defendant on August 15 and later on September 11, included 68.23 grams of fentanyl, 83.99 grams of cocaine, 108.6 grams of methamphetamine and 3.54 grams of MDMA, a Schedule I and II Controlled Substances, according to the federal plea agreement.
“This is a great example of working as a team to protect our community,” said U.S. Attorney Robert Brewer. “This motorcycle gang member has a long history of methamphetamine trafficking offenses. We are glad he will be off the streets for a long time. I am proud of our prosecutor, Brandon Kimura, and our law enforcement partners, for their hard work on this case.”
“ATF recognizes the role firearms play in violent crimes and narcotic trafficking,” said ATF Los Angeles Field Division Special Agent in Charge Carlos A. Canino. “We prioritize our resources to focus on armed violent offenders, career criminals, and violent gang members and use the enhanced sentencing guidelines for these offenders. The sentencing is an example of ATF, state and local law enforcement, and federal prosecutors working together to keep our communities safe.”
“We are extremely pleased with the outcome of this case. Through the collaborative investigative efforts of federal and local law enforcement, the menace Obediah Breer poses to our communities has been eliminated for years. We are grateful that the citizens of Oceanside and Escondido will be safer knowing the Hell’s Angel motorcycle gang’s capabilities and influence have been significantly impacted by Breer’s conviction.” -- Chief Craig Carter, Escondido Police Department.
DEFENDANTS 18-cr-04624-LAB
Obediah Breer Age: 42 Escondido, CA
SUMMARY OF CHARGES
Title 21 U.S.C., Sec. 841(a)(1) – Possession of Methamphetamine with Intent to Distribute
Maximum Penalty – Twenty years in prison, $1 million fine
AGENCY
Bureau of Alcohol, Tobacco, Firearms and Explosives
Oceanside Police Department
Escondido Police Department
*This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Suspected High-Level Guatemalan Drug Trafficker Arraigned in San Diego on Charges He Moved Large Quantities of Cocaine on the High SeasRead the Press Release
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287
NEWS RELEASE SUMMARY – June 14, 2019
SAN DIEGO – Willian Estuardo Lemus Lara, a suspected high-level cartel boss from Central America, was arraigned in federal court today on maritime cocaine trafficking charges.
According to the documents filed in court, Lemus was the manager of the transportation and distribution cell responsible for facilitating multi-ton quantity cocaine loads via go-fast vessels on the high seas originating from Colombia and Ecuador to Costa Rica and Guatemala. The United States alleged that he sold his cocaine loads to Mexican drug trafficking organizations for transportation to the United States.
The United States further alleged that Lemus was involved in a two-year conspiracy and that he directed the movement of large quantities of cocaine in go-fast vessels across international waters, including facilitating refueling vessels on the high seas during their journey north.
Lemus was indicted by a federal grand jury on January 18, 2018. He was charged with conspiracy to possess with intent to distribute cocaine on board a vessel, and international conspiracy to distribute cocaine. U.S. Magistrate Judge Andy Schopler ordered the defendant detained without bond. Lemus’ next hearing is scheduled for July 19, 2019, before U.S. District Judge Dana M. Sabraw.
“Federal law enforcement officials worked together in three countries to successfully disrupt a dangerous drug trafficking ring that sought to smuggle thousands of kilograms of cocaine into the United States,” said U.S. Attorney Robert Brewer. “Through effective partnerships and outstanding investigation, we intercepted significant loads of this highly addictive stimulant, stripped traffickers of drug profits, and helped to safeguard our communities.”
“I commend the government of Guatemala and all of our foreign and domestic law enforcement partners for their hard work. Their support was instrumental in our joint effort to dismantle this international criminal organization's ability to bring dangerous drugs into our communities and ensure the perpetrators of such attempts are brought to justice,” said David Shaw, special agent in charge for HSI San Diego. “These type of aggressive and coordinated law enforcement efforts are critical to removing the threat posed by criminals flooding American communities with dangerous narcotics, and we will continue to work with our U.S. and international law enforcement partners to bring transnational criminal organizations to justice.”
“DEA protects our communities by hunting down the head of the snake and bringing them to a U.S. courtroom to face U.S. justice,” said DEA Special Agent in Charge Karen Flowers. “The apprehension of a suspected cartel leader highlights what we do best: Leverage all tools across U.S. law enforcement, our foreign counterparts, and work as one to take out anyone, anywhere who profits from the human misery of addiction.”
“This significant case demonstrates what we can accomplish together with intelligence, diligence and commitment to excellence,” said Pete Flores, director of field operations for San Diego. “I commend the CBP task force officer and our partners at HSI, DEA, and the U.S. Attorney’s Office who collaborated to identify, investigate, to bring this man to justice and disrupt this transnational criminal organization.”
During the investigation, federal agents seized approximately 5,900 kilograms, or 13,000 pounds, of cocaine.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise of federal, state and local law enforcement. 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 Number 18CR0390DMS
Willian Estraduo Lemus-Lara Age: 49 Guatemala
SUMMARY OF CHARGES
Count 1 - Conspiracy to Possess with Intent to Distribute Cocaine on Board a Vessel
Maximum penalty: Life in prison, 10-year minimum mandatory; $1 million fine
Count 2 - International Conspiracy to Distribute Controlled Substances
Maximum penalty: Life in prison, 10-year minimum mandatory; $1million fine
INVESTIGATING AGENCIES
Homeland Security Investigations (HSI)
Drug Enforcement Administration (DEA)
Customs and Border Protection (CBP)
U.S. Coast Guard
HSI Joint Task Force Investigations (JTF-I)
HSI Attaché Guatemala City, Guatemala
HSI Attaché Mexico City Mexico
Joint Interagency Task Force-South (JIATF-S)
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Margaret E. Hunter Admits Conspiring with her Husband, Rep. Duncan D. Hunter, to Steal more than $200,000 in Campaign FundsRead the Press Release
Kelly Thornton (619) 546-9726
CLICK HERE for Plea AgreementNEWS RELEASE SUMMARY – June 13, 2019
SAN DIEGO – Margaret E. Hunter admitted in federal court today that she and her husband, U.S. Rep. Duncan D. Hunter, knowingly and willfully used campaign funds as their personal bank account for years, spending lavishly on things they could not otherwise afford, such as expensive trips to Italy, Las Vegas, Laguna Beach, Disneyland and elsewhere, plus golf outings, a bachelor party, private school for their children, dinners in Del Mar and Coronado, and even plane tickets for their family pet, Eggburt the rabbit.
Margaret Hunter’s plea agreement indicates that she has agreed to provide “substantial assistance to the United States in the investigation and prosecution of others” and to “tell everything (she) knows about every person involved” in the crime.
U.S. District Judge Thomas J. Whelan set Ms. Hunter’s sentencing for September 16, 2019 at 9 a.m. The Hunters both remain free on bond. A motions hearing relating to defendant Duncan Hunter is scheduled for July 1, 2019, and his trial is scheduled to begin on September 10, 2019.
As detailed in her plea agreement, beginning no later than 2010 and continuing up to and including at least 2016, Margaret and Duncan Hunter agreed to knowingly use campaign funds for their own personal benefit and enjoyment, and for that of friends and family. Throughout this period, the Hunters both recognized that many of their personal outings with family or friends (including trips to Del Mar, dinners or drinks with friends, family and “couples” vacations, golf outings, and a bachelor’s party) should not have been paid for with campaign funds. Nevertheless, Ms. Hunter admitted that the Hunters continued to improperly use campaign funds on these and many other occasions.
Among the improper expenses, Margaret Hunter acknowledged that the Hunters improperly spent $2,448.27 in campaign funds in August 2011 on a personal “couples” Las Vegas vacation in Las Vegas, Nevada, and concealed the personal expenditures by falsely reporting to the campaign treasurer that the expenses were all “campaign related.” Similarly, later that same month, knowing that their family bank account had a negative balance, the Hunters improperly used $113.73 in campaign funds to pay their half of the bill during another couples’ “date night” out with good friends at Jake’s Del Mar; improperly used $156.22 in campaign funds during a “couples” day at the Del Mar Racetrack; and improperly used $511.03 in campaign funds at the Hotel del Coronado to celebrate their child’s birthday. They once again falsely told the campaign treasurer that all the charges were “campaign related.”
Ms. Hunter acknowledged in her plea agreement that these types of improper expenses went on for years and included: (1) the Hunters’ improper use of $371.51 in campaign funds on September 2, 2012 at the Loew’s Resort in Coronado for a family lunch in connection with their child’s Irish Dance competition; (2) the Hunters’ improper use of $100.69 in campaign funds on November 16, 2013 at Casa De Pico in La Mesa to take their family and close friends out to dinner before attending a sporting event featuring one of the Hunters’ children; (3) the Hunters’ improper use of $1,489 in campaign funds on June 28, 2014 to treat their good friends to dinner at the Studio restaurant in the Montage Laguna Beach resort, and for room service, drinks, and meals the next day for the Hunters by themselves; (4) the Hunters’ improper use of campaign funds on September 26, 2015 for a family trip to Disneyland, in which Ms. Hunter used Duncan D. Hunter’s campaign card to spend $229.44 in campaign funds at Disneyland’s Star Trader shop for gifts for the Hunters’ children, including two Minnie Mouse ear headbands, a Star Wars droid knit beanie, and a raglan-sleeve black-and-gray Star Wars girls T-shirt; and (5) the Hunters’ improper use of $669.07 in campaign funds on March 27, 2016 at the Hotel del Coronado for a family Easter Sunday brunch in the Crown Room that the Hunters recognized was well outside their budget.
In her plea, Ms. Hunter also admitted improperly using campaign funds on a number of family vacations, including: (1) a July 2014 vacation to Washington, D.C. and a resort in Pennsylvania (which included personal items and activities such as purchasing cigarettes, $399 for ziplining for Hunter and two of his children, and $250 in airline travel charges for the family’s pet rabbit, Eggburt); (2) a February 2015 family trip to Minnesota, during which they improperly paid for personal family expenses including $250 in airline travel charges for Eggburt, and $132 in Uber rides to take the Hunter family to the Mall of America; (3) a June/July 2015 family vacation involving Hunter’s cousin’s wedding in Boise, Idaho, and a stopover in Las Vegas on the way there in which the Hunters, among other things, spent $205.62 in campaign funds for personal items at the North Face store, which included a new pair of sunglasses for Duncan Hunter and a T-shirt; and (4) a November 2015 family vacation to Italy, in which the Hunters improperly used more than $10,000 in campaign funds, and attempted to justify the impermissible use of these funds by setting up a one-day tour of a U.S. Navy facility in Italy.
Margaret Hunter also admitted communicating with Hunter and with the campaign treasurer about the fact that it was only appropriate to pay expenses with campaign funds when an outing or event was for a bona fide campaign or political purpose. Nevertheless, Ms. Hunter admitted that she and her husband both knowingly violated these restrictions and other rules the treasurer implemented to track legitimate expenses (such as instructing the Hunters not to purchase gas using campaign funds, instructing the Hunters that withdrawing cash from ATMs and using “petty cash” required records of how money was spent, and requiring receipts which listed the names of donors and volunteers with whom the Hunters claimed to be spending campaign funds).
Ms. Hunter also acknowledged that she and Duncan Hunter both were aware that the other spent, and could spend, campaign funds on personal activities and purchases without having to inform one another about the nature of specific “campaign” expenses. According to Ms. Hunter, this understanding allowed the Hunters to spend campaign funds on certain personal matters they wished to conceal from the other. For example, she hid from Duncan Hunter certain purchases she made with campaign funds for items like children’s school lunches.
On the other hand, when they improperly spent funds when they were together, they both recognized that campaign funds were being spent on personal activities. For example, after returning home from their personal Boise and Las Vegas vacation, Duncan Hunter and Ms. Hunter discussed how the campaign card had been declined as the family had “racked up a $600 minibar…and more charges at Caesars…” as well as a $200 family breakfast, the “kids room service” and pool drinks, and gift shop vacation expenses.
Even after Duncan Hunter’s chief of staff questioned several expenses the Hunters had made using campaign funds, Ms. Hunter admitted that the Hunters falsely insisted to campaign staff and on public reports that the personal expenses were in fact appropriate campaign-related charges. Moreover, Ms. Hunter acknowledged that she and Duncan Hunter continued using campaign funds to secretly make thousands of dollars in improper personal purchases (including family vacations, household goods and groceries, restaurants and bar tabs, a bachelor party, gas, fast food, retail shopping, cash withdrawals, a garage door, and personal Uber rides, among others) which they continued to disguise as campaign-related expenses.
DEFENDANTS Case Number 18cr3677-W
Margaret E. Hunter Age: 44 Alpine, CA
SUMMARY OF CHARGE
Conspiracy to Defraud the United States – Title 18, U.S.C., Sec. 371
AGENCY
Federal Bureau of Investigation
Justice Department Files Sexual Harassment Lawsuit against Owner and Manager of Rental Properties in Spring ValleyRead the Press Release
NEWS RELEASE SUMMARY – June 11, 2019
SAN DIEGO – The Department of Justice today announced that it has filed a lawsuit alleging that Larry Nelson, owner and manager of residential housing in Spring Valley, violated the Fair Housing Act by subjecting female tenants of his properties to sexual harassment and retaliation.
The lawsuit, filed in the U.S. District Court for the Southern District of California, alleges that Nelson engaged in sexual harassment and retaliation of female tenants from at least 2005 to the present, by, among other things, engaging in unwelcome sexual touching, offering to reduce monthly rental payments in exchange for sex, making unwelcome sexual comments and advances, making intrusive and unannounced visits to female tenants’ homes to further his sexual advances, and evicting or threatening to evict female tenants who objected or refused his sexual advances.
“The Fair Housing Act prohibits sexual harassment and retaliation in housing,” said Assistant Attorney General Eric Dreiband. “Any landlord who sexually harasses his tenants or retaliates against them for refusing sexual advances, destroys their housing security and risks families’ ability to keep a roof over their heads. Anyone who engages in this kind of disgusting and illegal conduct should be on notice: the Department of Justice will be coming for you.”
“Let this be a wake-up call for abusive landlords,” said U.S. Attorney Robert Brewer. “Holding a key to someone’s property is not a license to exploit them for sex. The Department of Justice is going to make sure a tenant’s home is a place of safety, not suffering.”
In October 2017, the Department of Justice launched an initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: A new joint Task Force with HUD to combat sexual harassment in housing, an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, and a public awareness campaign, including the release of a national Public Service Announcement. Since launching the initiative, the Department of Justice has filed 10 lawsuits alleging a pattern or practice of sexual harassment in housing.
Today’s lawsuit seeks monetary damages to compensate the victims, a civil penalty to vindicate the public interest, and a court order barring future discrimination and harassment. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Larry Nelson, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select mailbox 9991 to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at [email protected].
Click here for complaint###
Justice Department Files Sexual Harassment Lawsuit Against Owner and Manager of Rental Properties in San Diego, California, AreaRead the Press Release
The Department of Justice today announced that it has filed a lawsuit alleging that Larry Nelson, owner and manager of residential housing in Spring Valley, California, violated the Fair Housing Act by subjecting female tenants of his properties to sexual harassment and retaliation.
The lawsuit, filed in the U.S. District Court for the Southern District of California, alleges that Nelson engaged in sexual harassment of and retaliation against female tenants from at least 2005 to the present, by, among other things, engaging in unwelcome sexual touching, offering to reduce monthly rental payments in exchange for sex, making unwelcome sexual comments and advances, making intrusive and unannounced visits to female tenants’ homes to further his sexual advances, and evicting or threatening to evict female tenants who objected or refused his sexual advances.
“The Fair Housing Act prohibits sexual harassment and retaliation in housing,” said Assistant Attorney General Eric Dreiband. “Any landlord who sexually harasses his tenants or retaliates against them for refusing sexual advances, destroys their housing security and risks families’ ability to keep a roof over their heads. Anyone who engages in this kind of disgusting and illegal conduct should be on notice: the Department of Justice will be coming for you.”
“Let this be a wake-up call for abusive landlords,” said U.S. Attorney Robert Brewer. “Holding a key to someone’s property is not a license to exploit them for sex. The Department of Justice is going to make sure a tenant’s home is a place of safety, not suffering.”
In October 2017, the Department of Justice launched an initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, a public awareness campaign, including the release of a national Public Service Announcement and a new joint Task Force with HUD to combat sexual harassment in housing. Since launching the initiative, the Department of Justice has filed ten lawsuits alleging a pattern or practice of sexual harassment in housing.
Today’s lawsuit seeks monetary damages to compensate the victims, a civil penalty to vindicate the public interest, and a court order barring future discrimination and harassment. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Larry Nelson, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select mailbox 9991 to leave a message.
Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at [email protected].
Federal Jury Convicts Defendants of Attempted Enticement of Children to Engage in ProstitutionRead the Press Release
SAN DIEGO – Today, a federal jury convicted Defendants Conoly Freddie Franklin and Andre Anthony Franklin of attempted enticement of minors to engage in prostitution, in violation of 18 U.S.C. § 2422(b). Defendant Conoly Franklin was also convicted of attempted enticement of an adult to engage in prostitution, in violation of 18 U.S.C. § 2422(a).
The evidence at trial established that between August 22, 2018, and August 31, 2018, Conoly Franklin communicated with an undercover officer with the San Diego County Sheriffs’ Department who was working with the San Diego Human Trafficking Task Force. Believed that the officer was a young woman with a teenage sister, over the course of nine days, Conoly Franklin attempted to recruit the officer’s undercover persona and her 16-year old sister to work as prostitutes for him in Reno, Nevada. On August 30, 2018, Conoly Franklin advised he had obtained a vehicle in order to pick up both girls, was bringing his “boy,” and was beginning his trip to the San Diego area location provided by the undercover officer. Conoly Franklin arrived the following morning, along with his son, Andre Anthony Franklin, at which point San Diego Human Trafficking Task Force officers arrested both defendants. Following the Defendants’ arrest, Task Force Officers learned that throughout the trip, Andre Franklin was communicating with someone he believed to be another 16-year old girl, in Napa, California, but who was actually an undercover deputy with the Napa County Special Investigations Bureau. Andre Franklin told the deputy that he would be picking her up and taking her back to Reno to work for him as a prostitute, after he and his father picked up the sisters in San Diego.
The evidence at trial included a text message between Andre Franklin and “Pops,” from Tuesday, August 28, 2018, in which “Pops” asks Andre, “Wanna rock with me to San Diego, got 2 on deck.” Evidence also showed that the undercover deputy in Napa, California told Andre Franklin that she was 16-years-old. Undeterred, Andre Franklin continued to discuss performing commercial sex acts and the price that she would need to pay to work for him.
“The cavalier sex trafficking of children triggers traumas that can affect victims for decades,” said U.S. Attorney Robert S. Brewer, Jr. “Thanks to the efforts of dedicated officers with the San Diego Human Trafficking Task Force and Napa County Special Investigations Bureau and Assistant U.S. Attorneys Katie McGrath, Eric Roscoe, and Mark Conover, these defendants’ devious plans were thwarted in their tracks.”
Sentencing is set for September 9, 2019 before Federal District Court Judge William Hayes.
DEFENDANTS Case Number: 18-CR-4187-WQH
Conoly Freddie Franklin
Andre Anthony Franklin
SUMMARY OF CHARGES
Attempted enticement of an adult (Conoly Franklin) 18 U.S.C. § 2422(a)
Penalty: A maximum of 20 years in prison; a maximum of $250,000, up to five years of supervised release.
Attempted enticement of a minor (both Defendants) 18 U.S.C. § 2422(b)
Penalty: A mandatory minimum of ten years and a maximum of life in prison; a maximum of $250,000, at least five years of supervised release and up to life.
INVESTIGATING AGENCIES
San Diego County Sheriffs’ Department
Federal Bureau of Investigation
San Diego Human Trafficking Task Force
Napa County Special Investigations Bureau
Metro-PCS Robber Sentenced to 151 Months in Prison for 11 San Diego RobberiesRead the Press Release
Assistant U. S. Attorney Stephen Wong (619) 546-9464
NEWS RELEASE SUMMARY – June 3, 2019
SAN DIEGO – Justin Wayne Caldwell was sentenced in federal court today to 151 months prison in connection with the robberies of 11 San Diego area businesses in January and February 2017. U.S. District Judge Thomas J. Whelan also ordered Caldwell and his codefendant, Carlos Adolfo Soto, to pay $42,000 restitution to the victims.
Soto was sentenced to 140 months on May 27, 2019.
As described in his plea agreement, the spree of robberies involved 10 Metro PCS stores and a Subway Restaurant, all in San Diego County. The first robbery occurred on January 25, 2017 and the last on February 21, 2017. Soto admitted to committing eight of the eleven robberies, and to being part of a conspiracy that involved 11 robberies. In most of his robberies, Soto used a pellet gun that resembled a pistol during the robberies, pointing the weapon at store clerks and customers and demanding cellular phones and cash.
Soto was dubbed the “pinky bandit” for his distinctive pinky finger, which protruded out from the weapons he held during a string of eleven robberies. In a typical robbery, Soto entered the store holding a weapon such as a machete, tazer, or pellet gun that resembled a firearm. Soto pointed his weapon at store clerks and demanded cellular phones and cash. On one occasion, Soto threatened a store clerk with a machete, which he wielded during the robbery.
According to the government’s sentencing memorandum and admissions in his plea agreement, Caldwell typically waited outside the store in a car, serving as the getaway driver who helped Soto escape the crime scene. On at least one occasion, Caldwell also entered the store with a weapon. For example, on February 14, 2017, Soto and Caldwell pointed an object that resembled a handgun at a store clerk and forced the clerk into a storage area in the back of the store, where he was made to kneel down on his hands and feet, while they loaded a backpack with cellular phones. They then ordered the clerk to open the cash register.
Public filings describe how FBI agents and robbery detectives with the San Diego Police Department and the San Diego Sheriff’s Department collaborated to solve this case. In late January and early February of 2017, investigators noticed a series of robberies around San Diego County that fit a pattern. Ten of the 11 robberies involved Metro PCS cell phone stores and in each case the robbers used similar methods, weapons and disguises. Investigators identified the robbers after one of them registered a cell phone that had been stolen during an earlier robbery. Surveillance ultimately led investigators to the scene of the final robbery in the series. Soto was arrested after a foot chase, during which he dropped merchandise taken during the final robbery. Officers arrested Caldwell in his car, parked at the scene.
DEFENDANTS Case Number 17-CR-558-W
Carlos Adolfo Soto Age: 41 San Diego, CA
Justin Wayne Caldwell Age: 32 San Diego, CA
SUMMARY OF CHARGES
Hobbs Act Robbery, 18 U.S.C. § 1951
Maximum penalty: Twenty years in prison, $250,000 fine, 3 years’ supervised release
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Police Department
San Diego Sherriff’s Department
Former Border Patrol Agent Sentenced to Prison for Trafficking in Fentanyl Precursor and Sea CucumberRead the Press Release
Assistant U.S. Attorneys Melanie K. Pierson (619) 546-7976 or Sherri Hobson (619) 961-0287
NEWS RELEASE SUMMARY – May 31, 2019
SAN DIEGO – Former U.S. Border Patrol Agent Cesar Daleo was sentenced in federal court yesterday to 30 months in prison for conspiring to distribute a controlled substance that is used to make deadly fentanyl, and 24 months for conspiring to smuggle a protected species of sea cucumber. The sentences will run concurrently.
In the sea cucumber case, U.S. District Court Judge Gonzalo P. Curiel found that the defendant paid another individual to smuggle bags of dried sea cucumber (Isostichopus fuscus) into the United States from Mexico on at least 80 occasions between the fall of 2014 and the fall of 2016. The court also found that the value of the sea cucumber that Daleo helped to smuggle exceeded $250,000.
Isostichopus fuscus is the only species of sea cucumber found in Mexico that is protected under the Convention on International Trade in Endangered Species (CITES). In order to legally import fuscus, a CITES certificate issued by the country of origin (in this case, Mexico) must be presented at the time of importation. Isostichopus fuscus is prized in Asian communities for use in soup, based on it supposed medical properties.
In the drug case, the defendant admitted in his plea agreement that he conspired to distribute a controlled substance, known as 4-anilino-N-phenethyl-4-piperidine (4ANPP),” which is the immediate precursor or the primary ingredient for manufacturing deadly fentanyl.
Daleo was arrested on August 29, 2017, while trying to drive into Mexico with a package that he believed contained 4ANPP (4-anilino-N-phenethyl-4-piperidine), a Schedule II Controlled Substance. According to court records, Daleo had just picked up the package, shipped from China, at a post office box in San Ysidro. He had previously picked up 13 other packages from the same post office box.
Unbeknownst to Daleo, a few weeks earlier on August 11, 2017, a U.S. Customs and Border Protection agent stationed at Los Angeles International Airport had intercepted a package from China and discovered it contained 4ANPP. Homeland Security Investigations agents then replaced the 4ANPP with a harmless substance and waited for someone to pick it up at its destination in San Ysidro, California. When Daleo did so, and then headed to Mexico, he was intercepted by law enforcement before crossing the border. As part of his plea, the defendant admitted in court that there was an agreement to distribute 4ANPP and that he joined the agreement knowing its purpose and intending to help accomplish that purpose.
He also admitted that the parcels contained a substance that could be used to manufacture more illegal drugs. One kilogram of precursor 4ANPP, the amount seized on August 11, 2017, is enough manufacture approximately 25 kilograms of fentanyl in a Mexican drug lab.
“This is a fitting sentence for a former law enforcement agent who knew the dangers of drugs like fentanyl, yet did not hesitate to hand them out, for a price,” said U.S. Attorney Robert Brewer. “Now it is he who will pay a price for distributing a drug that destroys lives, families and communities.”
DEFENDANT
Cesar Daleo Age: 49 Chula Vista, California
SUMMARY OF CHARGES
Criminal Case No. 18cr2968-GPC
Conspiracy, 18 U.S.C. § 371
Maximum penalty: Five years in prison, $250,000 fine or twice the gross gain or loss caused by the offense; restitution; forfeiture of proceeds generated from the crime
Criminal Case No. 17cr3-41-GPC
Conspiracy to Distribute a Controlled Substance, 21 U.S.C. §§ 846 and 841
Maximum penalty: Twenty years in prison, $500,000 fine
AGENCIES
U.S. Fish and Wildlife Service, Office of Law Enforcement
National Oceanic and Atmospheric Administration, Office of Law Enforcement
Homeland Security Investigations
Customs and Border Protection
U.S. Postal Inspection Service
U.S. Drug Enforcement Administration
Metro-PCS Robbers Sentenced to 140 Months in Prison for Eleven San Diego RobberiesRead the Press Release
Assistant U. S. Attorney Stephen Wong (619) 546-9464
NEWS RELEASE SUMMARY – May 28, 2019
SAN DIEGO – Carlos Adolfo Soto was sentenced in federal court today to 140 months prison in connection with the robberies of 11 San Diego area businesses in January and February 2017. U.S. District Judge Thomas J. Whelan also ordered Soto to pay restitution to the victims.
Soto’s co-defendant, Justin Wayne Caldwell (42), is set to be sentenced on June 3, 2019.
As described in his plea agreement, the spree of robberies involved 10 Metro PCS stores and a Subway Restaurant, all in San Diego County. The first robbery occurred on January 25, 2017 and the last on February 21, 2017. Soto admitted to committing eight of the eleven robberies, and to being part of a conspiracy that involved 11 robberies. In most of his robberies, Soto used a pellet gun that resembled a pistol during the robberies, pointing the weapon at store clerks and customers and demanding cellular phones and cash.
Soto was dubbed the “pinky bandit” for his distinctive pinky finger, which protruded out from the weapons he held during a string of eleven robberies. In a typical robbery, Soto entered the store holding a weapon such as a machete, tazer, or pellet gun that resembled a firearm. Soto pointed his weapon at store clerks and demanded cellular phones and cash. On one occasion, Soto threatened a store clerk with a machete, which he wielded during the robbery.
According to the government’s sentencing memo and admissions in his plea agreement, Caldwell typically waited outside the store in a car, serving as the getaway driver who helped Soto escape the crime scene. On at least one occasion, Caldwell also entered the store with a weapon. For example, on February 14, 2017, Soto and Caldwell pointed an object that resembled a handgun at a store clerk and forced the clerk into a storage area in the back of the store, where he was made to kneel down on his hands and feet, while they loaded a backpack with cellular phones. They then ordered the clerk to open the cash register.
Public filings describe how FBI agents and robbery detectives with the San Diego Police Department and the San Diego Sheriff’s Department collaborated to solve this case. In late January and early February of 2017, investigators noticed a series of robberies around San Diego County that fit a pattern. Ten of the 11 robberies involved Metro PCS cell phone stores and in each case the robbers used similar methods, weapons and disguises. Investigators identified the robbers after one of them registered a cell phone that had been stolen during an earlier robbery. Surveillance ultimately led investigators to the scene of the final robbery in the series. Soto was arrested after a foot chase, during which he dropped merchandise taken during the final robbery. Officers arrested Caldwell in his car, parked at the scene.
“These robberies were terrifying experiences for the victims, one of whom was threatened with a machete,” said U.S. Attorney Robert Brewer. “Prosecuting violent crime is a top priority for this office. This case is an example of great detective work by the FBI and local law enforcement partners as well as diligence by prosecutor Stephen Wong.”
“The investigation into this robbery series exemplifies the dedication of the San Diego FBI to rid our communities of violent crime,” said Scott Brunner, FBI Special Agent in Charge. “This significant sentence is the result of our continued efforts to keep the community safe from violence, fear and intimidation by working together with our local law enforcement partners on our Violent Crimes Task Force.”
The amount of restitution will be finalized after both defendants are sentenced.
DEFENDANTS Case Number 17-CR-558-W
Carlos Adolfo Soto Age: 41 San Diego, CA
Justin Wayne Caldwell Age: 32 San Diego, CA
SUMMARY OF CHARGES
Hobbs Act Robbery, 18 U.S.C. § 1951
Maximum penalty: Twenty years in prison, $250,000 fine, 3 years’ supervised release
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Police Department
San Diego Sherriff’s Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Man Sentenced for Fraud and Operating Unlicensed Money Transmitting BusinessRead the Press Release
Assistant U. S. Attorney Jonathan I. Shapiro (619) 546-8225
NEWS RELEASE SUMMARY – May 28, 2019
SAN DIEGO – Morgan Rockcoons of Las Vegas, Nevada, was sentenced today by U.S. District Judge Anthony J. Battaglia to 21 months in prison for wire fraud and operating an unlicensed money transmitting business. Judge Battaglia also ordered Rockcoons to forfeit $80,600 in illicit profits.
Rockcoons, a U.S. citizen, has been in custody since his arrest on October 29, 2018. He pleaded guilty on March 7, 2019, admitting that he operated a Bitcoin exchange without registering with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury. He also admitted to devising a scheme to defraud individuals in connection with the purported sale of real estate in Elko County, Nevada, that he did not own.
According to the government’s sentencing memorandum, Rockcoons advertised his Bitcoin exchange services on the website LocalBitcoins.com. In 2015, HSI identified Rockcoons as the most prolific San Diego-based seller. In April 2016, the defendant’s LocalBitcoins.com profile showed that he continued to advertise as a trader and seller of Bitcoin in San Diego, with his profile reflecting that he had engaged in more than 500 transactions. As of October 2017, the defendant’s profile indicated that he conducted more than 1,000 bitcoin trades with more than 644 people. Rockcoons received a commission of as much as 36 percent per transaction.
Prior to his 2018 arrest, Rockcoons was indicted on November 8, 2017 for operating the unlicensed money transmitting business. He was arrested on that charge on February 9, 2018, and he was released on bond pending trial. In spring 2018, while on pretrial release, Rockcoons began promoting Bitcointopia on the internet and via social media. A purported real estate development in the desert in Elko County, Nevada, Rockcoons touted Bitcointopia as a place where bitcoin is “legal tender.” On the website, Rockcoons offered parcels of land for sale for Bitcoin, claiming: “The land is currently owned by Bitcointopia, Inc. corporation.” Rockcoons further stated, “500-1,000 Acre plots are for sale for 0.5 BTC per acre.” Victims who sent Rockcoons Bitcoin never received their title to land as promised. To date, agents have identified at least 10 victims of Rockcoons’ fraud. The two cases were combined in a superseding indictment.
DEFENDANT Case Number 17cr3690-AJB
Morgan Rockcoons Age: 31 Las Vegas, NV
SUMMARY OF CHARGES
Operation of Unlicensed Money Transmitting Business – Title 18, U.S.C., Section 1960(a)
Maximum penalty: Five years in prison and $250,000 fine
Wire Fraud – Title 18, U.S.C., Section 1960(a)
Maximum penalty: 20 years’ imprisonment and $250,000 fine
AGENCY
Homeland Security Investigations
Chief Executive of Communications Company Sentenced to Prison for Providing Encryption Services and Devices to Criminal OrganizationsRead the Press Release
Assistant U. S. Attorneys Andrew Young (619) 546-7981, Benjamin J. Katz (619) 546-9604, Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – May 28, 2019
SAN DIEGO – Vincent Ramos, the chief executive of Canada-based Phantom Secure, was sentenced to nine years in prison today for leading a criminal enterprise that facilitated the transnational importation and distribution of narcotics through the sale of encrypted communication devices and services. The Court also ordered Ramos to forfeit $80 million as proceeds of the crime, as well as specifically identified assets, including international bank accounts, real estate, cryptocurrency accounts, and gold coins.
This conviction marks the first time the United States targeted a company and convicted its chief executive for knowingly providing transnational criminal organizations with the encrypted infrastructure to conduct the international importation and distribution of narcotics.
“Vincent Ramos is going to prison because he provided violent, drug trafficking organizations with a high tech tool that enabled them to coordinate their crimes while staying in the shadows,” said U.S. Attorney Robert Brewer. “But Ramos’s system is down permanently, he has forfeited his wealth, and he is going to prison for nearly a decade. We will continue to investigate and prosecute these individuals, whether they are the ones transporting and selling drugs, or providing the tools to those who do.”
“I want to thank prosecutors Andrew Young, Ben Katz and Mark Pletcher, as well as the FBI, DEA, Customs and Border Protection, Homeland Security Investigations, U.S. Marshals Service, Washington State Police, the Bellingham and Blaine Police Departments, and all of our law enforcement partners around the world, including Australia, Canada, Panama, Hong Kong, and Thailand for their hard work on this case,” Brewer said.
“Striking at the heart of organized crime has always been a priority for the FBI,” said Scott Brunner, FBI Special Agent in Charge of the San Diego Field Office. “This case demonstrates that no matter the dangerous criminal activity or the advanced technology used by these sophisticated criminal enterprises, the FBI will keep pace to infiltrate and dismantle the organizations that, in today’s world, operate domestically and internationally. As a result, the FBI joins forces with exceptional law enforcement partners both in the U.S. and abroad, to ensure every tentacle of the global enterprise is severed and cannot operate its illegal and dangerous crimes.”
Ramos advertised Phantom Secure’s products as impervious to decryption, wiretapping or legal third-party records requests. Phantom Secure routinely deleted and destroyed evidence from devices that it knew had been seized by law enforcement. According to Court documents, Phantom Secure’s clients used email handles like the following to conduct criminal activities: [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected]; [email protected].
According to court documents, one of Ramos’s customers, Owen Hanson (who was previously sentenced to 21 years in custody), used only six Phantom Secure devices to coordinate the transportation of more than a ton of cocaine from Mexico into the United States and on to Canada and Australia. The government conservatively estimates there were at least 7,000 Phantom Secure devices in use at the time Ramos was arrested--meaning that “the amount of drugs Phantom Secure aided and abetted in transporting by providing devices and services to criminals worldwide was too high calculate.”
Ramos’ customers used his products to devastating and sometimes deadly effect, and Ramos used this to market his encryption services to criminals across the world. According to court documents, in response to a March 5, 2014 news article that reported investigations of a gangland murder were stymied because the suspects used Phantom Secure devices to coordinate the killing, Ramos wrote, “this is the best verification on what we have been saying all along – proven and effective for now over nine years. It is the highest level of authority confirming our effectiveness. It can’t get better than that.”
The international operation to arrest Ramos and seize Phantom Secure’s infrastructure involved cooperation and efforts by law enforcement authorities in the United States, Australia, and Canada, with additional assistance from U.S. and foreign law enforcement in Panama, Hong Kong, and Thailand.
Ramos’s co-defendants - Kim Augustus Rodd, Younes Nasri, Michael Gamboa and Christopher Poquiz – remain international fugitives, charged with participating in and aiding and abetting a racketeering enterprise and conspiring to import and distribute controlled substances around the world. All have been charged with Conspiracy to Commit RICO in violation of 18 U.S.C. § 1962 and Conspiracy to Distribute Controlled Substances in violation of 21 U.S.C. § 841 and 846.
In addition to our foreign law enforcement partners, the U.S. Attorney’s Office further recognizes the support and assistance of the U.S. Drug Enforcement Administration; United States Marshals Service; U.S. Customs and Border Protection; the United States Department of Homeland Security; Seattle and Las Vegas field offices of the Federal Bureau of Investigation; the Washington State Police Department; the City of Bellingham, Washington Police Department; the City of Blaine, Washington Police Department; and the Canada Border Services Agency, among others, without whose help this prosecution could not have been possible.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise of federal, state and local law enforcement. 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 Number 18CR1404-WQH
Vincent Ramos (1) Richmond, British Columbia, Canada
aka “CEO”
aka “Business”
SUMMARY OF CHARGES
Racketeering Conspiracy (RICO Conspiracy), in violation of 18 U.S.C. § 1962(d)
Maximum Penalty: 20 years in prison
AGENCIES
Federal Bureau of Investigation
Drug Enforcement Administration
United States Marshals Service
Department of Justice, Office of International Affairs
Australian Federal Police
New South Wales Police (Australia)
New South Wales Crime Commission (Australia)
Australian Criminal Intelligence Commission
Royal Canadian Mounted Police
International Assistance Group, Department of Justice, Canada
Un hombre de California acusado formalmente de delitos de odio federales relacionados con el tiroteo en una Sinagoga en Poway y el incendio provocado en una mezquita en EscondidoRead the Press Release
Un gran jurado federal en el Tribunal Federal para el Distrito Sur de California acusó a un hombre de California de delitos de odio federales y otros delitos relacionados con armas de fuego, entre ellos el asesinato de una persona y el intento de asesinato de otras 53 más, por sus acciones durante el tiroteo del 27 de abril en la Sinagoga de Chabad de Poway en California y por el incendio provocado del 24 de marzo en la Mezquita Dar-ul-Arqam en Escondido. El Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband, el Fiscal Federal para el Distrito Sur de California, Robert S. Brewer, Jr, y la Agente Especial Encargada en funciones del FBI en San Diego, Suzanne Turner, emitieron el anuncio.
John T. Earnest, 19, de Rancho Peñasquitos, California, fue acusado en la acusación formal de 113 cargos pronunciada hoy. La denuncia presentada el 7 de mayo acusó a Earnest de 54 cargos de obstrucción al libre ejercicio de creencias religiosas con el uso de un arma peligrosa, lo que resultó en la muerte, lesiones corporales e intentos de asesinato; 54 cargos de vulneración de la ley de Prevención de Delitos de Odio de Matthew Shepard y James Byrd Jr. y un cargo de daño a una propiedad religiosa por el uso de fuego en relación al intento de provocar un incendio en la mezquita. La acusación formal añade cuatro cargos por el disparo de un arma de fuego durante el transcurso de esos delitos de violencia.
Según la declaración jurada en apoyo de la denuncia penal, el 27 de abril Earnest condujo a la Sinagoga Chabad en Poway, donde miembros de la congregación se habían reunido para celebrar un culto religioso en honor al Shabat y el último día de la Pascua judía. Earnest entró en el edificio armado con un rifle de asalto AR-15 completamente cargado con un cargador de 10 cartuchos. Él llevaba puesto una funda en el pecho que contenía cinco cargadores adicionales, cada uno de ellos cargados con 10 cartuchos de municiones. La declaración jurada alega que estando dentro de la Sinagoga de Poway, Earnest abrió fuego y asesinó a una persona y lesionó a otros tres miembros de la congregación, entre ellos un menor de edad. Durante una pausa cuando Earnest intentó sin éxito recargar su rifle, varios miembros de la congregación, incluyendo un Agente de la Patrulla Fronteriza fuera de servicio, persiguieron a Earnest mientras este huía de la sinagoga. Earnest huyó de la escena en su carro, pero fue posteriormente capturado por las autoridades policiales, quienes descubrieron el AR-15 y cargadores adicionales de munición en el vehículo.
Más aún, la declaración jurada alega que, tras el tiroteo, los investigadores policiales hallaron un manifiesto en línea con el nombre de Earnest. Una copia del manifiesto se encontró posteriormente en el portátil de Earnest durante la ejecución de una orden de registro. En el manifiesto, Earnest hizo muchas declaraciones antisemíticas y antimusulmanes. En concreto, Earnest se refirió a los «judíos» como raza y manifestó que lo único que lamenta es no haber matado a más personas.
Según la declaración jurada, Earnest también confesó en el manifiesto el incendio provocado de una mezquita en Escondido en marzo del 2019. La declaración jurada alega que el 24 de marzo, siete individuos se encontraban dentro de la mezquita cuando olieron gasolina y vieron llamas saliendo de la grieta de una de las puertas de la mezquita. Los individuos apagaron el incendio, pero solo después de que el incendio hubiera dañado el exterior de la mezquita. La declaración jurada alega además que el vídeo de vigilancia muestra a un sospechoso llegando a la mezquita en el mismo tipo de vehículo que Earnest empleó para realizar el ataque en la sinagoga. El acusado supuestamente alegó en su manifiesto que se había inspirado por el tiroteo en la sinagoga Tree of Life en Pittsburgh, Pensilvania, y los tiroteos recientes en dos mezquitas en Nueva Zelanda.
Los Fiscales Federales Auxiliares Shane Harrigan, Peter Ko, John Parmley y Caroline Han, juntos con la Abogada de Litigios Rose Gibson, de la División de Derechos Civiles, están enjuiciando este caso en nombre del Gobierno. El FBI, la Oficina del Sheriff de San Diego, la Agencia de Control de Bebidas Alcohólicas, Tabaco, Armas de Fuego y Explosivos (ATF, por sus siglas en inglés), la Policía de San Diego y la Policía de Encondido llevaron a cabo la investigación.
Earnest se enfrenta a la máxima pena posible de muerte o cadena perpetua. Actualmente se encuentra bajo custodia estatal a la espera de cargos penales estatales. Una acusación formal es meramente eso, una acusación, y al acusado se lo considera inocente mientras no se pruebe su culpabilidad ante un tribunal de justicia.
Para más información sobre el trabajo del Departamento de Justicia por combatir y prevenir los delitos de odio, vaya a www.justice.gov/hatecrimes: es un único portal con enlaces a recursos del Departamento de Justicia relacionados con delitos de odio para la policía, los medios de comunicación, investigadores, víctimas, grupos de apoyo y otras organizaciones y personas.
Anexo(s):
Download earnest_indictment_.pdf
Major Takedown Dismantles Multi-State Methamphetamine Network Tied to Sinaloa CartelRead the Press Release
Assistant U.S. Attorneys Matthew J. Sutton (619) 546-8941 and Ryan A. Sausedo (619) 546-9689
NEWS RELEASE SUMMARY – May 21, 2019
SAN DIEGO – Indictments were unsealed today in San Diego federal court charging 43 members of a methamphetamine distribution network tied to the Sinaloa Cartel with federal drug trafficking and money laundering offenses.
During the coordinated takedown that began early this morning, investigators executed over a dozen search warrants and seized approximately 80 pounds of methamphetamine, four firearms, and more than $100,000 in U.S. currency. As of today at 5 p.m., 33 of the forty-three defendants are either in federal or state custody. Authorities are continuing to search for 10 defendants. Many of the defendants are scheduled to be arraigned before U.S. Magistrate Judge Linda Lopez at 10:30 a.m. tomorrow.
According to the indictments and other publicly filed court documents, this San Diego based network supplied multi-kilogram quantities of methamphetamine and gamma-hydroxybutyrate (GHB) to dozens of subdistributors located throughout the United States and the world, including California, Arizona, Oregon, Wyoming, Texas, Arkansas, Florida, Virginia, Washington, D.C., New Jersey, New York and the United Arab Emirates. In return, tens of thousands of dollars in narcotics proceeds were returned to the network’s leaders via shipments of bulk cash, structured cash deposits into bank accounts, and online money transfer systems like PayPal, Zelle, Venmo, and Cash App.
The defendants operated the drug-trafficking scheme by arranging for the shipment of large quantities of methamphetamine from San Diego to various locations in the United States and internationally, through FedEx and the United States Postal Service (USPS). The drug shipments were mailed weekly to various hotels, residences, and Airbnb locations. As part of the scheme, the defendants also created multiple fraudulent FedEx accounts. These fraudulent FedEx accounts were billed to and paid for by large corporations, in hopes that the large businesses would not notice the illicit packages.
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 a six-month-long federal wiretap to track the communications and the location of the defendants. In conjunction with the wiretaps, agents ultimately seized approximately 78 pounds of methamphetamine and four firearms tied to the network.
In addition to the indictments announced today, more than a dozen defendants who worked with this network have been charged in connection with this investigation in multiple jurisdictions across the United States, including by the U.S. Attorney’s Offices for the District of New Jersey, the Eastern District of Virginia, the Western District of Texas, and Eastern District of Arkansas, as well as the Florida Office of the Attorney General and the Yuma, Arizona County Attorney’s Office.
“Today we have completely dismantled this San Diego-based international drug trafficking network with ties to the Sinaloa Cartel,” said U.S. Attorney Robert Brewer. “I want to congratulate the outstanding federal, state, and local law enforcement cooperation that resulted in this highly successful investigation. Replicating this kind of aggressive law enforcement takedown is critical to breaking the backs of these criminal networks and continuing our efforts against the Sinaloa Cartel.”
“The Sinaloa Cartel relies on members of our communities to distribute their drugs. Because they manipulate our commercial distribution routes to make a buck, our streets are flooded with high purity and low cost methamphetamine,” said DEA Special Agent in Charge Karen Flowers. “Without their distribution networks, such as the one dismantled today, cartels would not be able to operate drug businesses that rival Fortune 500 companies and dangerous drugs, like methamphetamine, would be scarce, expensive and of low purity. The operation today will ultimately disrupt the supply chain, diminish profits and make it harder for the Sinaloa Cartel to do business in the United States. Just as important, today’s operation sends a message: If you’re profiting from drug addiction, you will be pursued relentlessly by DEA, regardless of your role in the distribution network.”
“As alleged, the defendants ran a sophisticated network of drug trafficking and money laundering,” said Johnathan Smith, IRS Assistant Special Agent in Charge of the Los Angeles Field Office. “This case demonstrates our ability to identify and trace even the most sophisticated drug trafficking and money laundering organizations. IRS – Criminal Investigation, in conjunction with our law enforcement partners, will remain committed to disrupting the flow of illicit drug proceeds and dismantling the most sophisticated drug and money laundering organizations.”
“There is no place for illegal drugs in our communities,” said Undersheriff Michael Barnett. “Drugs ruin the life of the user and destroy families. Those who push drugs into our neighborhoods and homes must be held accountable. This massive operation was uncovered because of a Sheriff's Detective and DEA Special Agent who followed up on information. Working together, the Sheriff's Department will continue to target those responsible for distributing and selling illegal drugs in our communities.”
U.S. Attorney Brewer also praised federal, state, and local law enforcement for the coordinated team effort in the culmination of this investigation. 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), the Escondido Police Department (EPD), United States Border Patrol (USBP), and the San Diego County Probation Office. Agents and officers from the United States Marshals Service, the United States Postal Inspection Service, 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. He also thanked our vital foreign law enforcement partners in the United Arab Emirates – the Abu Dhabi Police.
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 Ryan A. Sausedo.
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
Defendants Criminal Case No: 19-cr-1787-BAS
Defendant Number
Name
Age
Hometown
1
Ramon Anthony Hernandez
30
San Diego, CA
2
Tomas Teters
54
San Diego, CA
3
Natalya Soheli
27
San Diego, CA
4
Giorgio Jabsi
27
San Diego, CA
5
William Whitenack
45
Palm Springs, CA
6
Derrick Davidson
41
San Diego, CA
7
Chase Michael Berkman
33
San Diego, CA
8
Jose Rodriguez
40
Chula Vista, CA
9
Heath Sean Silvercloud
42
San Diego, CA
10
Keith Acker
29
San Diego, CA
11
*
41
San Diego, CA
12
*
47
Huntington Beach, CA
13
Christopher Halton
33
Palm Springs, CA
14
*Nicholas Ramirez
41
San Diego, CA
15
Jose Luis Magdaleno
28
San Diego, CA
16
*Corinna Vasquez
48
Oceanside, CA
17
Randall Bialek
57
San Diego, CA
18
*
47
San Diego, CA
19
Daniel Godoy
37
Cathedral City, CA
20
Paul Matthew Calzetta
50
Orlando, FL
21
Destin Banks
40
Orlando, FL
22
*Billie Jo Reynolds
40
Gillette, WY
23
Sean O’Brien
53
San Diego, CA
24
Mark Seymour
36
San Diego, CA
25
Christopher Groves
48
Miami, FL
26
*
45
Moreno Valley, CA
27
Javier Rivera
41
Chula Vista, CA
28
Carlos Velasco
42
Imperial Beach, CA
29
Christian Raggio
26
Imperial Beach, CA
30
Cody Parker
28
San Diego, CA
31
Ivan Torres
31
San Diego, CA
32
Arturo Julian Galvin
36
Columbus, OH
33
John Mark Tomsick
53
San Diego, CA
34
Maresha Morrow
32
San Diego, CA
35
Rene Reynoso
45
San Diego, CA
36
*
59
Escondido, CA
37
Kory Strohauer
33
San Diego, CA
38
*
47
San Diego, CA
39
Daniel Hensley
41
Spring Valley, CA
40
Ubaldo Perez
28
San Diego, CA
41
Peter Mohrmann
53
San Diego, CA
42
Robert Montell
57
San Diego, CA
*Fugitives
Summary of Charges
Conspiracy to Distribute Methamphetamine (21 U.S.C. §§ 841(a)(1) and 846)
Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(1) and (h))
Distribution of Methamphetamine (21 U.S.C., § 841(a)(1))
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 imprisonment, $10,000,000 fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years’ imprisonment, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and 3 years of supervised release.
Defendant Criminal Case No: 19-cr-1788-BAS
Defendant Number
Name
Age
Hometown
1
*
36
Vista, CA
Summary of Charges
Distribution of Methamphetamine (21 U.S.C., § 841(a)(1))
Maximum Penalties: A term of custody including a mandatory minimum 10 years and up to life imprisonment, a $10,000,000 fine and a lifetime 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 Postal Inspection Service
United States Border Patrol
Federal Bureau of Prisons
San Diego Police Department
Escondido Police Department
National City Police Department
San Diego County Probation Office
San Diego County District Attorney’s Office
Riverside County Sheriff's Department
Austin, Texas Police Department
Seminole County, Florida Sheriff’s Department
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 New Jersey
U.S. Attorney’s Office for the Eastern District of Virginia
U.S. Attorney’s Office for the Western District of Texas
U.S. Attorney’s Office for the Eastern District of Arkansas
U.S. Attorney’s Office for the Central District of California
U.S. Attorney’s Office for the Middle District of Florida
U.S. Attorney’s Office for the Southern District of Florida
U.S. Attorney’s Office for the District of Arizona
Florida Office of the Attorney General
Yuma, Arizona County Attorney’s Office
Abu Dhabi Police
California Man Indicted for Federal Hate Crimes Related to Poway Synagogue Shooting and Arson of Escondido MosqueRead the Press Release
Assistant U. S. Attorneys Shane Harrigan (619) 546-6981, Caroline Han (619) 546-6968 and Peter Ko (619) 546-7359
SAN DIEGO – John T. Earnest of Rancho Peñasquitos was indicted by a federal grand jury this morning on civil rights, hate crime, and firearm charges in connection with the murder of one person and the attempted murder of 53 others at the Chabad of Poway Synagogue on April 27 and the March 24 arson of the Dar-ul-Arqam Mosque in Escondido.
The original complaint filed on May 7 charged Earnest with 54 counts of obstruction of free exercise of religious beliefs using a dangerous weapon, resulting in death, bodily injury, and attempts to kill; 54 counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act; and one count of damage to religious property by use of fire in relation to the attempted arson of the mosque. The indictment adds four charges for discharging a firearm during crimes of violence.
Earnest is scheduled to be arraigned on the indictment June 4, 2019 at 1:30 p.m. before U.S. Magistrate Judge Michael S. Berg.
According to the affidavit in support of the criminal complaint, on April 27, Earnest drove to the Chabad of Poway Synagogue, where members of the congregation were gathered to engage in religious worship celebrating Shabbat and the last day of Passover. Earnest entered the building armed with an AR-15 style semi-automatic rifle that was fully loaded with a 10-round magazine. He wore a chest rig that contained five additional magazines, each loaded with 10 rounds of ammunition.
The affidavit alleges that while inside the Poway Synagogue, Earnest opened fire, killing one person and injuring three other members of the congregation, including a juvenile. During a pause when Earnest unsuccessfully attempted to reload his firearm, several congregant members, including an off-duty Border Patrol Agent, chased Earnest, and Earnest fled from the Synagogue. Earnest was subsequently apprehended by law enforcement authorities who discovered the AR-15 and additional magazines of ammunition in his car.
The affidavit further alleges that after the shooting, law enforcement investigators found a manifesto online bearing Earnest’s name. In the manifesto, Earnest made many anti-Semitic and anti-Muslim statements. Specifically, Earnest referred to “Jews” as a race, and he stated his only regret was that he did not kill more people.
According to the affidavit, Earnest also admitted in the manifesto to the arson of the Dar-ul-Arqam Mosque in March 2019. The affidavit alleges that on March 24, seven individuals were inside the mosque when they smelled gasoline and saw flames coming through the crack of one of the mosque’s doors. The individuals put out the fire, but not before the fire had damaged the exterior of the mosque. The affidavit further alleges that surveillance video showed a suspect arriving at the mosque in the same type of vehicle Earnest used in committing the attack on the Synagogue. The defendant allegedly claimed in his manifesto that he was inspired by the Tree of Life synagogue shooting in Pittsburgh, Pennsylvania, and the recent shootings at two mosques in New Zealand.
Assistant U.S. Attorneys Shane Harrigan, Peter Ko, John Parmley, and Caroline Han, along with Trial Attorney Rose Gibson of the Civil Rights Division, are prosecuting this case on behalf of the government. The FBI, San Diego Sheriff’s Office, ATF, San Diego Police Department, and Escondido Police Department conducted the investigation.
Some of the charges, by statute, make Earnest eligible for the death penalty. The Attorney General will decide whether to seek the death penalty at a later time. Earnest is currently in state custody pending state criminal charges.
An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty in a court of law.
For more information about the Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to Department of Justice hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
DEFENDANT Case Number 19cr1850
John T. Earnest Age: 19 San Diego, CA
SUMMARY OF CHARGES
Obstruction of Free Exercise of Religious Beliefs Resulting in Death and Bodily Injury; and Involving Attempt to Kill, Use of a Dangerous Weapon - 18 U.S.C. §§ 247(a)(2), 247(d)(1) and 247(d)(3)
Maximum penalty: Life in prison or death and $250,000 fine
Hate Crime Acts – 18 U.S.C. § 249(a)(1)(B)(i)(ii)
Maximum penalty: Life in prison and $250,000 fine
Damage to Religious Real Property Involving Use of a Dangerous Weapon or Fire – 18 U.S.C. §§ 247(a)(1), 247 (d)(3)
Maximum penalty: Twenty years in prison and $250,000 fine
Using and Carrying a Firearm During and In Relation to a Crime of Violence – Title 18, U.S.C., Sec. and 924(c) and 924(j)
Maximum penalty: Life in prison or death and $250,000 fine, mandatory minimum 10 years in prison
Using and Carrying a Firearm During and In Relation to a Crime of Violence – Title 18, U.S.C., Sec. and 924(c)
Maximum Penalty: Life in prison and $250,000 fine, mandatory minimum 10 years in prison
AGENCIES
Federal Bureau of Investigation
San Diego County Sheriff’s Department
San Diego Police Department
Bureau of Alcohol, Tobacco, Firearms and Explosives
San Diego County District Attorney’s Office
Escondido Police Department
California Man Indicted for Federal Hate Crimes Related to Poway Synagogue Shooting and Arson of Escondido MosqueRead the Press Release
A federal grand jury sitting in the U.S. District Court for the Southern District of California charged a California man with federal hate crimes and additional firearms offenses, including the murder of one person and the attempted murder of 53 others, for his actions during the April 27 shooting at the Chabad of Poway Synagogue in California and the March 24 arson of the Dar-ul-Arqam Mosque in Escondido. Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S. Attorney Robert S. Brewer Jr. for the Southern District of California, and San Diego FBI Acting Special Agent in Charge Suzanne Turner made the announcement.
John T. Earnest, 19, of Rancho Peñasquitos, California, was charged in the 113-count indictment returned today. The original complaint filed on May 7, charged Earnest with 54 counts of obstruction of free exercise of religious beliefs using a dangerous weapon, resulting in death, bodily injury, and attempts to kill; 54 counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act; and, one count of damage to religious property by use of fire in relation to the attempted arson of the mosque. The indictment adds four charges for discharging a firearm during those crimes of violence.
According to the affidavit in support of the criminal complaint, on April 27, Earnest drove to the Chabad of Poway Synagogue, where members of the congregation were gathered to engage in religious worship celebrating Shabbat and the last day of Passover. Earnest entered the building armed with an AR-15 style semi-automatic rifle that was fully loaded with a 10-round magazine. He wore a chest rig that contained five additional magazines, each loaded with 10 rounds of ammunition. The affidavit alleges that while inside the Poway Synagogue, Earnest opened fire, killing one person and injuring three other members of the congregation, including a juvenile. During a pause when Earnest unsuccessfully attempted to reload his firearm, several congregant members, including an off-duty Border Patrol Agent, chased Earnest as he fled from the Synagogue. Earnest fled the scene in his car, but was subsequently apprehended by law enforcement authorities who discovered the AR-15 and additional magazines of ammunition in his car.
The affidavit further alleges that after the shooting, law enforcement investigators found a manifesto online bearing Earnest’s name. A copy of the manifesto was later found on Earnest’s laptop during the execution of a search warrant. In the manifesto, Earnest made many anti-Semitic and anti-Muslim statements. Specifically, Earnest referred to “Jews” as a race, and he stated his only regret was that he did not kill more people.
According to the affidavit, Earnest also admitted in the manifesto to the arson of the Dar-ul-Arqam Mosque in March 2019. The affidavit alleges that on March 24, seven individuals were inside the mosque when they smelled gasoline and saw flames coming through the crack of one of the mosque’s doors. The individuals put out the fire, but not before the fire had damaged the exterior of the mosque. The affidavit further alleges that surveillance video showed a suspect arriving at the mosque in the same type of vehicle Earnest used in committing the attack on the Synagogue. The defendant allegedly claimed in his manifesto that he was inspired by the Tree of Life synagogue shooting in Pittsburgh, Pennsylvania, and the recent shootings at two mosques in New Zealand.
Assistant U.S. Attorneys Shane Harrigan, Peter Ko, John Parmley, and Caroline Han, along with Trial Attorney Rose Gibson of the Civil Rights Division, are prosecuting this case on behalf of the government. The FBI, San Diego Sheriff’s Office, ATF, San Diego Police Department, and Escondido Police Department conducted the investigation.
Earnest faces a maximum possible penalty of death, or life without parole. He is currently in state custody pending state criminal charges. An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty in a court of law.
For more information about the Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to Department of Justice hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals.
Suspected Alien Smuggler and His Three U.S.-Based Adult Children Charged in ConspiracyRead the Press Release
Assistant U. S. Attorneys Timothy D. Coughlin (619) 546-6768 and Victor P. White 619 546-8439
NEWS RELEASE SUMMARY – May 17, 2019
SAN DIEGO – Luis Antonio Mendez-Brahan of Tijuana and his three California-based adult children were indicted by a federal grand jury for participating in a family-operated alien smuggling organization.
Mendez-Brahan and his children - Christopher Mendez, Wendy Monserrath Mendez and Nancy Jacqueline Suarez - are all charged with one count of Conspiracy to Bring in Illegal Aliens for Financial Gain, to Transport Illegal Aliens and to Conduct Financial Transactions with Proceeds of Specified Unlawful Activity. The father is also charged with five counts of Bringing in Aliens for Financial Gain.
Mendez-Brahan resides in Mexico and remains at large. His children were taken into custody yesterday at their homes in Wasco, California near Bakersfield and Madera, California near Fresno. All made their first appearances in federal court today.
According to the indictment, Mendez-Brahan was the leader of the smuggling organization for almost a decade and was responsible for smuggling hundreds of illegal aliens into the United States. The Mendez-Brahan organization allegedly operated in an area east of the Tecate Port of Entry and used an ever-changing cadre of spotters, guides and drivers to facilitate the smuggling organization’s criminal activities. The indictment alleges that Mendez-Brahan charged between $7,000 and $8,500 for each alien he arranged to be smuggled into the United States.
According to the indictment, the defendants used money service businesses such as Western Union and Money Gram to move money from the U.S. to Mexico. Border Patrol investigators tracked financial transactions conducted by Mendez-Brahan’s children in the United States to money service businesses located in Tijuana and ultimately, to Luis Antonio Mendez-Brahan. The three Mendez-Brahan children used family members in Mexico and the U.S. to send and receive their ill-gotten smuggling proceeds.
This case is the result of ongoing efforts by the United States Border Patrol –San Diego Sector to dismantle active transnational criminal organizations involved in alien smuggling along the U.S.-Mexico border in the Southern District of California.
DEFENDANTS Case Number 19cr1570-JLS
Luis Antonio Mendez-Brahan Age: 55 Tijuana, Baja California, Mexico
Christopher Mendez Age: 28 Wasco, California
Wendy Monserrath Mendez Age: 24 Wasco, California
Nancy Jacqueline Suarez Age: 31 Madera, California
SUMMARY OF CHARGES
Count 1 (All Defendants) – Conspiracy to Bring in Illegal Aliens for Financial Gain; to Transport Illegal Aliens and to Conduct Financial Transactions with Proceeds of Specified Unlawful Activity – Title 18, U.S.C., Section 371 and Title 18 U.S.C. Section 2 –Aiding and Abetting.
Maximum penalty: Five (5) years’ imprisonment and $250,000 fine
Counts 2-6 (Luis Antonio Mendez-Brahan) - Bringing in Aliens for Financial Gain: - Title 8, U.S.C., Section 1324(a)(2)(B)(ii) and Title 18, U.S.C., Section 2 - Aiding and Abetting.
Maximum penalty: Each count carries a mandatory minimum term of imprisonment of three (3) years and a maximum of ten (10) years for the first or second violation. Any additional violations carry a mandatory minimum term of imprisonment of five (5) years and a maximum of fifteen (15) years,
AGENCY
United States Border Patrol
San Diego Sector/El Cajon 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.
Wells Fargo Personal Banker Pleads Guilty to Money Laundering ChargesRead the Press Release
Assistant U. S. Attorney Blanca Quintero (619) 546-7118
NEWS RELEASE SUMMARY – May 16, 2019
SAN DIEGO – Luis Fernando Figueroa of Tijuana pleaded guilty in federal court today to money laundering charges, admitting that he worked with others to launder and transfer money to Mexico through accounts he opened up at Wells Fargo as a personal banker.
Figueroa’s arrest by the FBI in November 2018 was the last in a string of indictments and arrests tied to the international money laundering organization based in Tijuana, Mexico but operating primarily in San Diego. To date, eight former members and leaders of the organization have been arrested and charged in San Diego. Six of those arrested have pleaded guilty.
According to the indictment and other public records, the international money laundering organization laundered approximately $19.6 million dollars in narcotics proceeds on behalf of Mexican based drug trafficking organizations to include the Sinaloa Cartel between 2014 and 2016.
“We can’t allow our banks to be laundromats for cartel cash,” said U.S. Attorney Robert Brewer. “Bank employees who launder drug money for traffickers will face prosecution and prison.”
“Today’s conviction shows the dedication and depth of the FBI’s efforts to dismantle money laundering organizations,” said Suzanne Turner, FBI Acting Special Agent in Charge of the San Diego Field Office. “With our law enforcement partners, we will continue to strike at the heart of narcotics trafficking by pursuing each and every member of money laundering organizations who feed the proceeds of illegal and dangerous drug trafficking back to the cartels.”
According to court documents, the money laundering organization recruited individuals to serve as funnel account holders to open personal bank accounts at Wells Fargo Bank and other U.S. banks. Figueroa, as a personal banker with Wells Fargo, admitted in his plea agreement that he knowingly opened personal bank accounts at Wells Fargo for the funnel account holders, knowing that those personal accounts would be used to launder funds to Mexico.
Other members of the money laundering organization, known as couriers, travelled to Los Angeles, Chicago, Charlotte, Boston, New Jersey, and New York City to pick up bulk cash narcotics proceeds that ranged from thousands to hundreds of thousands of dollars in narcotics proceeds. The couriers made contact with individuals holding the bulk cash in private residences or public places such as parking lots and retail stores. The cash was typically concealed in shopping bags, duffel bags or shoeboxes.
Once in possession of the money, the couriers deposited the bulk cash in increments of $22,000 to $45,000 into the funnel bank accounts at Wells Fargo Bank and other U.S. banks controlled by the money laundering organization. The funds were then wire transferred from the funnel accounts to a series of Mexico based shell companies operated by the money laundering organization. Figueroa himself made multiple wire transfers from the funnel accounts knowing that the funds were from unlawful activity. Once in Mexico, the funds were transferred to representatives of the Sinaloa Cartel.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise of federal, state and local law enforcement. 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. This case is being prosecuted by Assistant U.S. Attorney Blanca Quintero.
DEFENDANT Case Number: 17CR-2203-WQH
Luis Fernando Figueroa Age: 30 Tijuana, Mexico
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Criminal Forfeiture (18 U.S.C. 981(a)(1)(C), 18 U.S.C. 982(a)(1), 28 U.S.C. 2461(c))
Maximum penalty: 20 years’ imprisonment and $500,000 fine
AGENCY
Federal Bureau of Investigation’s San Diego Cross Border Violence Task Force
IRS Criminal Investigations
Un hombre de California acusado de delitos de odio por el tiroteo en una sinagoga en PowayRead the Press Release
El Departamento de Justicia acusó hoy a un hombre de California de delitos de odio, entre ellos el asesinato de una persona y el intento de asesinato de otros 53 más, por sus acciones en el tiroteo del 27 de abril en la Sinagoga Chabad de Poway en California. El Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband, el Fiscal Federal para el Distrito Sur de California, Robert S. Brewer, Jr. y la Agente Especial Encargada en funciones del FBI en San Diego, Suzanne Turner, emitieron el anuncio.
«Nadie en este país debe ser víctima de violencia, lesiones o muerte por ser quién es o por sus creencias religiosas», declaró el Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband. «El Departamento enjuiciará activamente a individuos que cometan un delito de odio o acto de terrorismo doméstico y seguiremos colaborando con nuestras agencias asociadas del orden público estatales y locales para que se haga justicia ante cualquier persona que contravenga los derechos civiles de los estadounidenses».
«No permitiremos la caza de nuestros miembros comunitarios en sus lugares de culto, donde deberían sentirse libres y seguros en el ejercicio de su derecho a la práctica de culto religioso», afirmó el Fiscal Federal Robert S. Brewer, Jr. «Nuestras acciones de hoy son inspiradas por nuestro deseo de lograr justicia para todas las víctimas y sus familias».
«El FBI se ha comprometido firmemente a recopilar todos los hechos y asegurar que se haga justicia en este caso» dijo la Agente Especial Encargada en funciones del FBI en San Diego, Suzanne Turner. «A medida que trabajemos juntos para hacer justicia y comenzar el proceso de recuperación, nuestra comunidad ha demostrado una fortaleza y unidad tremenda en tantos niveles, desde nuestras agencias del orden público asociadas y comunidades religiosas diversas, hasta nuestros ciudadanos y vecinos».
John T. Earnest, de 19 años, vecino de Rancho Peñasquitos, California, fue acusado por denuncia penal de 109 contravenciones relacionadas con delitos de odio.
Según la declaración jurada en apoyo de la denuncia penal, el 27 de abril Earnest condujo a la Sinagoga de Chabad de Poway, donde miembros de la congregación se habían reunido para celebrar un culto religioso en honor al Shabat y el último día de la Pascua judía. Earnest entró en el edificio armado con un rifle de asalto AR-15 completamente cargado con un cargador de 10 cartuchos. Él llevaba puesto una funda en el pecho que contenía cinco cargadores adicionales, cada uno de ellos cargados con 10 cartuchos de municiones. La declaración jurada alega que estando dentro de la Sinagoga de Poway, Earnest abrió fuego y asesinó a una persona y lesionó a otros tres miembros de la congregación, entre ellos un menor de edad. Durante una pausa mientras Earnest intentaba sin éxito recargar su rifle, varios miembros de la congregación, incluyendo un Agente de la Patrulla Fronteriza fuera de servicio, persiguieron a Earnest mientras este huía de la sinagoga. Earnest huyó de la escena en su carro, pero fue posteriormente capturado por las autoridades policiales, quienes descubrieron el AR-15 y cargadores adicionales de munición en el vehículo.
Más aún, la declaración jurada alega que, tras el tiroteo, los investigadores policiales hallaron un manifiesto en línea con el nombre de Earnest. Una copia del manifiesto se encontró posteriormente en el portátil de Earnest durante la ejecución de una orden de registro. En el manifiesto, Earnest hizo muchas declaraciones antisemíticas y antimusulmanes. En concreto, Earnest se refirió a los «judíos» como raza y manifestó que lo único que lamenta es no haber matado a más personas.
Según la declaración jurada, Earnest también confesó en el manifiesto el incendio provocado de una mezquita en Escondido en marzo del 2019. La declaración jurada alega que el 24 de marzo, siete individuos se encontraban dentro de la mezquita cuando olieron gasolina y vieron llamas saliendo de la grieta de una de las puertas de la mezquita. Los individuos apagaron el incendio, pero solo después de que el incendio hubiera dañado el exterior de la mezquita. La declaración jurada alega además que el vídeo de vigilancia muestra a un sospechoso llegando a la mezquita en el mismo tipo de vehículo que Earnest empleó para realizar el ataque en la sinagoga. El acusado supuestamente alegó en su manifiesto que se había inspirado por el tiroteo en la sinagoga Tree of Life en Pittsburgh, Pensilvania y los tiroteos recientes en dos mezquitas en Nueva Zelanda.
En concreto, la denuncia le acusa de 109 contravenciones relacionadas con delitos de odio:
- 54 cargos de obstrucción al libre ejercicio de creencias religiosas con el uso de un arma peligrosa, lo que resultó en muerte, lesiones corporales e intentos de asesinato;
- 54 cargos de vulneración de la ley de Prevención de Delitos de Odio de Matthew Shepard y James Byrd Jr.;
- Un cargo de daño a una propiedad religiosa por el uso de fuego en relación al intento de provocar un incendio en la mezquita.
Los Fiscales Federales Auxiliares Shane Harrigan, Peter Ko, John Parmley y Caroline Han, juntos con la Abogada de Litigios Rose Gibson, de la División de Derechos Civiles, están enjuiciando este caso en nombre del Gobierno. El FBI, la Oficina del Sheriff de San Diego y la Agencia de Control de Bebidas Alcohólicas, Tabaco, Armas de Fuego y Explosivos llevaron a cabo la investigación.
Earnest se enfrenta a la máxima pena posible de muerte o cadena perpetua. Actualmente se encuentra bajo custodia estatal a la espera de cargos penales estatales.
Todos los cargos y la denuncia son meramente alegaciones, y al acusado se lo considera inocente mientras no se pruebe su culpabilidad ante un tribunal de justicia.
Anexo(s):
Download Earnest Complaint and Affidavit
California Man Charged with Federal Hate Crimes for Poway Synagogue ShootingRead the Press Release
The Department of Justice today charged a California man with federal hate crimes, including the murder of one person and the attempted murder of 53 others, for his actions during the April 27 shooting at the Chabad of Poway Synagogue in California. Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S. Attorney Robert S. Brewer, Jr. for the Southern District of California, and San Diego FBI Acting Special Agent in Charge Suzanne Turner made the announcement.
“No one in this country should be subjected to violence, injury, or death for who they are or for their religious beliefs,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Department will vigorously prosecute those who commit hate crimes and acts of domestic terrorism, and we will continue to work with our state and local partners to bring to justice anyone who violates the civil rights of Americans.”
“We will not allow our community members to be hunted in their houses of worship, where they should feel free and safe to exercise their right to practice their religion,” said U.S. Attorney Robert S. Brewer, Jr. “Our actions today are inspired by our desire to achieve justice for all of the victims and their families.”
"The FBI is steadfast in our commitment to gather all the facts and ensure justice is served in this case," said FBI San Diego Acting Special Agent in Charge Suzanne Turner. "As we work together to bring justice and begin the healing process, our community has shown extraordinary strength and unity on so many levels-from our law enforcement partners, diverse faith-based communities, and extending to our citizens and neighbors."
John T. Earnest, 19, of Rancho Peñasquitos, California, was charged by criminal complaint with 109 hate crimes violations.
According to the affidavit in support of the criminal complaint, on April 27, Earnest drove to the Chabad of Poway Synagogue, where members of the congregation were gathered to engage in religious worship celebrating Shabat and last day of Passover. Earnest entered the building armed with an AR-15 style semi-automatic rifle that was fully loaded with a 10-round magazine. He wore a chest rig, which contained five additional magazines, each loaded with 10 rounds of ammunition. The affidavit alleges that while inside the Poway Synagogue, Earnest opened fire, killing one person and injuring three other members of the congregation, including a juvenile. During a pause when Earnest unsuccessfully attempted to reload his firearm, several congregant members, including an off-duty Border Patrol Agent, chased Earnest as he fled from the Synagogue. Earnest fled the scene in his car, but was subsequently apprehended by law enforcement authorities who discovered the AR-15 and additional magazines of ammunition in his car.
The affidavit further alleges that after the shooting, law enforcement investigators found a manifesto online bearing Earnest’s name. A copy of the mainfesto was later found on Earnest’s laptop during the execution of a search warrant. In the manifesto, Earnest made many anti-Semitic and anti-Muslim statements. Specifically, Earnest referred to “Jews” as a race, and he stated his only regret was that he did not kill more people.
According to the affidavit, Earnest also admitted in the manifesto to the arson of an Escondido Mosque in March 2019. The affidavit alleges that on March 24, seven individuals were inside the mosque when they smelled gasoline and saw flames coming through the crack of one of the mosque’s doors. The individuals put out the fire, but not before the fire had damaged the exterior of the mosque. The affidavit further alleges that surveillance video showed a suspect arriving at the mosque in the same type of vehicle Earnest used in committing the attack on the Synagogue. The defendant allegedly claimed in his manifesto that he was inspired by the Tree of Life synagogue shooting in Pittsburgh, Pennsylvania, and the recent shootings at two mosques in New Zealand.
Specifically, the complaint charges 109 hate crimes violations:
- 54 counts of obstruction of free exercise of religious beliefs using a dangerous weapon, resulting in death, bodily injury, and attempts to kill;
- 54 counts of violating the Mathew Shepard and James Byrd Jr. Hate Crimes Prevention Act;
- One count of damage to religious property by use of fire in relation to the attempted arson of the mosque.
Assistant United States Attorneys Shane Harrigan, Peter Ko, John Parmley, and Caroline Han, along with Trial Attorney Rose Gibson of the Civil Rights Division, are prosecuting this case on behalf of the government. The FBI, San Diego Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.
Earnest faces a maximum possible penalty of death, or life without parole. He is currently in state custody pending state criminal charges.
All charges and the complaint are merely allegations and the defendant is presumed innocent unless proven guilty in a court of law.
Bank Employee Charged with Fraud; Accused of Laundering Money for Fentanyl TraffickersRead the Press Release
Assistant U. S. Attorney Blanca Quintero (619) 546-7118
NEWS RELEASE SUMMARY – May 9, 2019
SAN DIEGO – Leopoldo Aguilera, a former Wells Fargo personal banker, appeared in federal court today in connection with charges that he used his position to launder millions of dollars for Mexico-based drug traffickers.
Aguilera was arrested by FBI agents on May 2, 2019, on charges of bank fraud for his participation in an international money laundering organization based in Tijuana, Mexico, and which operated primarily in San Diego.
At today’s hearing, U.S. Magistrate Judge Jill L. Burkhardt allowed the defendant to be released on a $40,000 bond secured by two financially responsible adults. The judge also ordered that the defendant be subject to home detention and GPS monitoring.
According to the complaint, Aguilera abused his position of trust as a personal banker with Wells Fargo Bank and aided the money laundering organization by wire transferring millions of dollars to Mexico. The FBI’s investigation linked these funds to the sale of narcotics, specifically the sale of multi-kilogram amounts of fentanyl in the Midwest.
According to the complaint, with the knowledge of the money laundering organization’s structure, scheme, and objectives, Aguilera performed a litany of financial transactions for the criminal organization. For instance, he opened 26 bank accounts at Wells Fargo Bank and executed 229 international wire transfers totaling $7.4 million.
Of the 26 bank accounts that Aguilera opened for the organization, 11 of them were created by Aguilera with 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 11 fictitious bank accounts. These fictitious bank accounts alone were used by the criminal organization to wire transfer a total of $3.1 million to Mexico, the vast majority of those wire transfers conducted by Aguilera himself.
As part of the investigation, the FBI identified and seized 17 bank accounts that belonged to the organization and which contained at least $160,000 at the time of the seizure of the funds.
The investigation found that Aguilera had received approximately $4,000 in cash payments from the criminal organization in exchange for his participation in the scheme.
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-MJ-1801-JLB
Leopoldo Aguilera Age: 57 Tijuana, Mexico
SUMMARY OF CHARGES
Bank Fraud (18 U.S.C. 1344)
Maximum Penalties: Thirty years in prison, $1 million fine
AGENCIES
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.
Alleged Synagogue Shooter Charged with Federal Hate CrimesRead the Press Release
Assistant U. S. Attorneys Shane Harrigan (619) 546-6981, Caroline Han (619) 546-6968 and Peter Ko (619) 546-7359
NEWS RELEASE SUMMARY – May 9, 2019
SAN DIEGO – The U.S. Department of Justice today charged a Rancho Peñasquitos man with federal hate crimes, including the murder of one person and the attempted murder of 53 others, for his actions during the April 27 shooting at the Chabad of Poway Synagogue.
John T. Earnest, 19, was charged by criminal complaint with 109 hate crimes violations. The complaint alleges that these crimes were motivated by hatred toward the Jewish community.
“We will not allow our community members to be hunted in their houses of worship, where they should feel free and safe to exercise their right to practice their religion,” said U.S. Attorney Robert S. Brewer, Jr. “Our actions today are inspired by our desire to achieve justice for all of the victims and their families.”
“No one in this country should be subjected to unlawful violence, injury, or death for who they are or for their religious beliefs,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Department will vigorously prosecute those who commit hate crimes and acts of domestic terrorism, and we will continue to work with our state and local partners to bring to justice anyone who violates the civil rights of Americans.”
“The FBI is steadfast in our commitment to gather all the facts and ensure justice is served in this case,” said FBI San Diego Acting Special Agent in Charge Suzanne Turner. “As we work together to bring justice and begin the healing process, our community has shown extraordinary strength and unity on so many levels - from our law enforcement partners, diverse faith-based communities, and extending to our citizens and neighbors.”
According to the affidavit in support of the criminal complaint, on April 27, Earnest drove to the Chabad of Poway Synagogue, where members of the congregation were gathered to engage in religious worship celebrating Shabat and last day of Passover. Earnest entered the building armed with an AR-15 style semi-automatic rifle that was fully loaded with a 10-round magazine.
He wore a chest rig which contained five additional magazines, each loaded with ten rounds of ammunition. The affidavit alleges that while inside the Poway Synagogue, Earnest opened fire, killing one person and injuring three other members of the congregation, including a juvenile. During a pause when Earnest unsuccessfully attempted to reload his firearm, several congregant members, including an off-duty Border Patrol Agent, chased Earnest as he fled from the Synagogue. Earnest fled the scene in his car, but was subsequently apprehended by law enforcement authorities who discovered the AR-15 and additional magazines of ammunition in his car.
The affidavit further alleges that after the shooting, law enforcement investigators found a manifesto online bearing Earnest’s name. A copy of the mainfesto was later found on Earnest’s laptop during the execution of a search warrant. In the manifesto, Earnest made many anti-Semitic and anti-Muslim statements. Specifically, Earnest referred to “Jews” as a race, and he stated his only regret was that he did not kill more people.
According to the affidavit, Earnest also admitted in the manifesto to the arson of an Escondido Mosque in March 2019. The affidavit alleges that on March 24, 2019, seven individuals were inside the mosque when they smelled gasoline and saw flames coming through the crack of one of the mosque’s doors. The individuals put out the fire, but not before the fire had damaged the exterior of the mosque. The affidavit further alleges that surveillance video showed a suspect arriving at the mosque in the same type of vehicle Earnest used in committing the attack on the Synagogue. The defendant allegedly claimed in his manifesto that he was inspired by the Tree of Life synagogue shooting in Pittsburgh, Pennsylvania, and the recent shootings at two mosques in New Zealand.
Specifically, the complaint charges 109 hate crimes violations:
- 54 counts of obstruction of free exercise of religious beliefs using a dangerous weapon, resulting in death, bodily injury, and attempts to kill;
- 54 counts of hate crimes in relation to the shooting in violation of the Mathew Shepard and James Byrd Jr. Hate Crimes Prevention Act; and,
- One count of damage to religious property by use of fire in relation to the attempted arson of the mosque.
When hate crimes are intended to intimidate and coerce a civilian population, they may also be considered acts of domestic terrorism.
Assistant United States Attorneys Shane Harrigan, Peter Ko, John Parmley, and Caroline Han, along with Trial Attorney Rose Gibson of the Civil Rights Division, are prosecuting this case on behalf of the government. The FBI, San Diego Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigations.
Earnest faces a maximum possible penalty of death, or life without parole. He is currently in state custody pending state criminal charges.
The defendant is expected to make his first appearance in federal court on Tuesday May 14 at 2 p.m. before U.S. Magistrate Judge Michael Berg.
*The charges and allegations contained in a complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
DEFENDANT Case Number 19MJ1900
John T. Earnest Age: 19 San Diego, CA
SUMMARY OF CHARGES
Obstruction of Free Exercise of Religious Beliefs Resulting in Death and Bodily Injury; and Involving Attempt to Kill, Use of a Dangerous Weapon - 18 U.S.C. §§ 247(a)(2), 247(d)(1) and 247(d)(3)
Maximum penalty: Life in prison or death and $250,000 fine
Hate Crime Acts – 18 U.S.C. § 249(a)(1)(B)(i)(ii)
Maximum penalty: Life in prison and $250,000 fine
Damage to Religious Real Property Involving Use of a Dangerous Weapon or Fire – 18 U.S.C. §§ 247(a)(1), 247 (d)(3)
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCIES
Federal Bureau of Investigation
San Diego County Sheriff’s Department
San Diego Police Department
Bureau of Alcohol, Tobacco, Firearms and Explosives
San Diego County District Attorney’s Office
Escondido Police Department
Argentine Man Sentenced in Witchcraft Extortion SchemeRead the Press Release
Assistant U.S. Attorney Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – May 6, 2019
SAN DIEGO – Ariel Boiteux, an Argentine national who masterminded an international extortion scheme against hundreds of people seeking romance through witchcraft and magic spells, was sentenced in federal court today to the maximum sentence - two years in prison.
According to court documents, targets of the scheme were directed to record themselves performing sexually explicit rituals to be used in casting love spells. Boiteux instead threatened to post the embarrassing videos on social media unless the clients paid large sums of money.
“This was a despicable scheme that preyed upon people who put their trust in a phony,” said U.S. Attorney Robert Brewer. “This defendant used the vulnerability of the lovelorn to humiliate and extort them, and for that he will pay a price.”
“I commend the dedicated work by our cybercrime experts who worked diligently to bring Boiteux, who dangerously preyed on others for his own financial gain, to justice,” said David Shaw, Special Agent in Charge for Homeland Security Investigations in San Diego. “This investigation underscores our commitment to keep pace with combatting criminal activity across all borders, including the internet.”
According to his plea agreement, Boiteux and several associates – operating out of Paraguay under the business name Amarres Inmediatos – offered to perform rituals that could improve one’s romantic relationships. Boiteux advertised these services on Facebook, Instagram, and MercadoLibre. The advertised services included casting spells designed to foster romantic relationships.
Clients who contacted Amarres Inmediatos soon learned that the rituals were performed remotely rather than in person. Clients were provided with a list of items to purchase, which typically included candles, alcohol, vegetables, and photographs. The ritual called for the client to drink alcohol, recite sexually explicit incantations, and perform sexual acts, all while recording the ritual. The client would then send the recordings of the ritual back to Boiteux and his associates, who would threaten to publicize the sexually explicit recordings unless the client paid an amount that far exceeded the initial price agreed upon for the ritual. In his plea agreement, Boiteux admitted to researching the clients to see who would be susceptible to extortion.
In February 2017, the plea agreement said, Boiteux obtained sensitive recordings of a client performing a ritual. The defendant researched the client’s background and determined that she was a well-connected public figure with access to significant financial resources. Boiteux and his associates then contacted the client and threatened to publicize the recordings unless she paid more than $250,000.
According to the plea agreement, in the fall of 2017, an undercover agent from Homeland Security Investigations called a phone number on the Amarres Inmediatos website and offered to purchase recordings of another victim, portions of which had been uploaded to publicly-available websites in an attempt to extort that victim. Boiteux agreed to sell the recordings for thousands of dollars and instructed the undercover agent to send a money transfer through Western Union. After the agent sent the money transfer, Paraguayan law enforcement officers waited at a Western Union in Ciudad del Este, Paraguay where Boiteux had picked up a previous money transfer. As expected, Boiteux arrived a short time later to pick up the transfer, but instead was arrested by Paraguayan officers. Boiteux was extradited to San Diego in July 2018.
DEFENDANT: Case Number 18-CR-2025-H
Ariel Boiteux Age: 31 San Juan, Argentina
SUMMARY OF CHARGES
Foreign Transmission of an Extortionate Threat – Title 18, U.S.C., Section 875
Maximum penalty: 2 years’ imprisonment and $250,000 fine
AGENCY
Homeland Security Investigations
Founder of Local Technology Company Charged with Operating a $60 Million Investment FraudRead the Press Release
Assistant U.S. Attorney Joseph Orabona (619) 546-7951
NEWS RELEASE SUMMARY – April 26, 2019
SAN DIEGO – Jonny Ngo, the former president and chief executive officer of NL Technology, LLC, was arraigned today on a 21-count indictment charging him with wire fraud, mail fraud and money laundering in connection with operating a $65 million investment fraud. The hearing took place in federal court before U.S. Magistrate Judge Mitchell D. Dembin after the indictment was unsealed.
According to the indictment, Ngo induced his victims to invest funds in various short-term investment contracts by making false representations, including that: (a) investor money would be used to fund wholesale purchase orders of smartphone screens and other electronic goods; (b) NL Technology was a regular supplier of smartphone screens to a number of buyers, including two buyers who each ordered approximately $2 million of product from NL Technology; (c) all wholesale orders funded by investor money was pre-purchased by NL Technology clients; and (d) the quality of the products and safety of investor funds used to purchase the products was guaranteed by a third-party escrow company.
The indictment further alleges that Ngo created counterfeit invoices falsely indicating that NL Technology had substantial purchase orders from alleged wholesale companies. The indictment alleges that Ngo also provided false financial statements purportedly certified by an accountant showing NL Technology earned income from its wholesale business totaling $12.5 million in 2015 and $15.4 million in 2016. Moreover, as alleged, Ngo fabricated bank statements or screenshots from bank statements held in the name of NL Technology with individual line items altered to appear as legitimate wholesale business transactions. Lastly, Ngo created false checks from wholesale companies allegedly doing business with NL Technology.
To further his investment fraud, Ngo and others allegedly told investors that they could roll over their investments into future investment contracts with NL Technology, when in fact no such future investments were possible. Also, Ngo allegedly lulled investors about the continued viability of NL Technology through materially false representations, including that NL Technology had an outstanding purchase order from a smartphone repair company for approximately $300,000, when in fact, no such order existed.
Instead of investing the funds in the business, the indictment alleges that Ngo converted investor funds to his own personal use and benefit by spending the money on a home, luxury cars and gambling. As a result of his investment fraud, it is alleged that Ngo induced investors to part with more than $60 million, and ultimately caused millions of dollars in losses.
“Investment fraud has a long-lasting and devastating effect on victims in our community,” said U.S. Attorney Robert S. Brewer, Jr. “When these schemes are brought to our attention, we will work collaboratively with our law enforcement partners to unravel the fraud and hold those responsible for profiting from it.”
FBI Acting Special Agent in Charge Suzanne Turner said: “Mr. Ngo's alleged technology business scheme was, in fact, a plan to deceive investors, luring them into a false sense of security about their investments, falsifying documents to cover the lies and stealing the funds for personal use. The FBI will continue to identify and investigate those who defraud investors. We ask anyone who has information related to investor fraud submit a tip at https://tips.fbi.gov/.”
U.S. Postal Inspection Service Inspector in Charge Nichole Cooper stated: “Mr. Ngo is accused of a scheme that separated millions of dollars from consumers who believed they were making legitimate investments. However, those who commit crimes like this one fail to realize that Postal Inspectors and our federal law enforcement partners will discover these greedy schemes and will bring the culprits to justice for their crimes against unsuspecting investors.”
The Government moved to detain the defendant as a risk of flight. Judge Dembin set a detention hearing for Tuesday, April 30, 2019 at 9:30 a.m. before U.S. Magistrate Judge Ruben B. Brooks. The defendant will remain in custody until the hearing. Judge Dembin also scheduled a motion hearing/trial setting for June 7, 2019 at 11 a.m. before U.S. District Judge Jeffrey T. Miller.
DEFENDANT Case Number: 19CR1391-JM
Jonny Ngo Age: 32 San Diego, CA
SUMMARY OF CHARGES
Title 18, United States Code, Section 1343 – Wire Fraud
Maximum Penalties: 20 years’ in prison, a fine of $250,000, three years of supervised release
Title 18, United States Code, Section 1341 – Mail Fraud
Maximum Penalties: 20 years’ in prison, a fine of $250,000, three years of supervised release
Title 18, United States Code, Section 1957 – Money Laundering
Maximum Penalties: 10 years’ in prison, a fine of $250,000, three years of supervised release
AGENCIES
Federal Bureau of Investigation
United States Postal Inspection Service
An indictment itself is not evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
San Diego Finance Executive and Real Estate Broker Sentenced to Prison for Stealing Almost $50 MillionRead the Press Release
Assistant U.S. Attorneys Emily W. Allen (619) 546-9738 and Andrew P. Young (619) 546-7981
NEWS RELEASE SUMMARY – April 25, 2019
SAN DIEGO – Financial executive Peter Cash Doye was sentenced in federal court today to 15 years in prison for his role as the “driving force” in a massive real estate loan scheme in which he and his co-conspirators stole nearly $50 million dollars from San Diego residents and lenders.
His co-defendant, Raquel Reid, a notary public and real estate broker, was previously sentenced to 65 months for her role in the fraud. The court also ordered Doye and Reid to pay more than $43 million in restitution to the victims.
During the sentencing hearing, U.S. District Judge William Q. Hayes described the defendant as “cold blooded” and the “driving force” behind an “overwhelmingly selfish act” that was motivated by “pure unmitigated greed.” He scolded the defendant for having a “callous attitude” toward his victims, and remarked about his testimony during trial. “After you said your name, I’m hard-pressed to remember anything you said that was truthful,” Judge Hayes said.
The pair were indicted on September 19, 2017 on charges of conspiracy to commit wire fraud, wire fraud, mail fraud, and aggravated identity theft. Reid was also charged with lying to a federal agent. On November 20, 2018, after a two-week trial, a jury returned a guilty verdict on all charges against both defendants. According to the indictment and the evidence introduced at trial, the defendants defrauded lenders into making enormous loans against four multi-million dollar mansions in La Jolla and Del Mar, then used forged documents to make it appear that the loans had been paid off – thereby enabling them to secure additional loans from new lenders who believed the mansions were owned “free and clear.”
Doye, a senior executive at the real estate investment firms Conix, Inc. and Variant Commercial Real Estate (“VCRE”), negotiated the financing from unsuspecting lenders and investors based on a host of lies about the collateral used to secure the loans. To pull off the scam, Doye, Reid, and their co-conspirators created forged real estate lien “releases” and recorded fraudulent records at the San Diego County Recorder’s Office, complicating the chain of title for these homes. Reid notarized the forged documents, helping to make the fraudulent paperwork appear authentic.
Doye’s business partner, Courtland Gettel, and Arizona attorney Jeffrey Greenberg, who testified at the trial on behalf of the government, previously pleaded guilty to participating in the scheme and are serving sentences of 135 and 51 months, respectively. Gettel and Greenberg were also ordered to pay more than $43 million in restitution to victims, and to forfeit the proceeds of the crime. Gettel was the owner of Conix and VCRE, which refurbished single-family homes, purchased distressed debt, and purchased and refurbished commercial real estate projects.
During trial, the government proved that Gettel, Greenberg, and Doye acquired the high-end homes in La Jolla and Del Mar by claiming they would be used as luxury rentals and investment properties—although in fact, Gettel and Doye lived in the properties along with their families. When they needed money to fund other business deals, Gettel and Doye began negotiating with new lenders, pretending that the first loans never existed or had already been paid off. Greenberg admitted that he used his expertise as a lawyer to generate and record fraudulent records, making it appear that prior loans were paid off and helping to close the fraudulent deals.
In late 2014, the lenders began to uncover the fraud and learn that their secured interests in the properties were worthless. In response to questions from these lenders, Doye, Reid and Gettel denied knowing anything about the fraudulent loans, and created yet more fraudulent documents to cover their tracks. For example, Reid destroyed her notary book and cut up her notary stamp, and then falsely reported to the California Secretary of State that her book had been lost.
“This crime was a colossal $50 million swindle by a greedy, brazen thief who squandered the stolen money on lavish parties in Las Vegas, penthouse apartments, private jets and abundant drug use,” said U.S. Attorney Robert Brewer. “The defendant’s extravagant lifestyle was funded by the hardships of his victims, who suffered health problems, emotional stress, financial uncertainty and strain on relationships. This sentence underscores the significant harm victims to and the integrity of our financial system, and is a testament to the hard work of FBI agents and prosecutors Emily Allen and Andrew Young.”
“Today, final justice has been served in this multi-million dollar loan fraud scheme. All four defendants, including Doye, who was sentenced to 15 years in custody today, are no longer able to perpetrate their deceit and lies to fulfill their personal greed,” said FBI Acting Special Agent in Charge Suzanne Turner. “The FBI remains committed to pursuing fraud schemes that erode the integrity of our financial system."
DEFENDANTS, 17CR2897-WQH
Peter Cash Doye Age: 43 San Diego, CA
Raquel Reid Age: 40 San Diego, CA
Count One (both defendants): Wire and Mail Fraud Conspiracy, in violation of 18 U.S.C. § 1349
Maximum Penalties: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture
Counts Two through Six (Doye only; both defendants as to Count Three): Wire Fraud, in violation of 18 U.S.C. § 1343
Maximum Penalties as to each count: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture
Counts Seven through Nine (Doye only as to Count Seven, both defendants as to Counts Eight and Nine): Mail Fraud, in violation of 18 U.S.C. § 1341
Maximum Penalties as to each count: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture
Counts Ten and Eleven (both defendants): Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A
Maximum Penalties: mandatory 2 years’ imprisonment, consecutive to any other term of imprisonment, $250,000 fine, $100 special assessment, restitution.
Count Twelve (Reid only): False Statements to Federal Agents, in violation of 18 U.S.C. § 1001
Maximum Penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
DEFENDANTS PREVIOUSLY CHARGED
Jeffrey Greenberg, 16CR1076-WQH and 1077-WQH Age: 67 Tucson, AZ
Courtland Gettel, 16CR1099-WQH Age: 43 Coronado, CA
AGENCY
Federal Bureau of Investigation
Online Drug Dealer Pleads Guilty in Fentanyl Overdose DeathRead the Press Release
Assistant U. S. Attorney Michael A. Deshong (619) 546-9290
NEWS RELEASE SUMMARY – April 24, 2019
SAN DIEGO – Drug dealer Trevon Antone Lucas pleaded guilty in federal court today, admitting that he sold pills containing fentanyl to a La Jolla man, causing his fatal overdose last year.
Lucas, a resident of Highland, California, admitted in his plea agreement that he posted online advertisements for the illegal sale of prescription pills. The victim responded to one of Lucas’ posts in 2017 and began purchasing various prescription pills from him.
According to his 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 victim was found dead in his room the following morning.
“This is what the deadly fentanyl crisis looks like at Ground Zero,” said U.S. Attorney Robert Brewer. “It’s not some far off problem. It is a mother finding her son dead on the floor after he swallowed a substance so dangerous that in its purest form, even a tiny amount touching the skin can be deadly. Those who sell fentanyl resulting in death will be held accountable for their callous and reckless disregard for human life.”
Text messages between the victim and Lucas indicated that Lucas sold the counterfeit pills laced with fentanyl that caused the fatal overdose. Three other individuals, Cenlair 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.
Lucas is scheduled to be sentenced on July 19, 2019 before U.S. District Judge Cathy Ann Bencivengo.
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, and 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 38 years old and he left behind his mother and brother.
“These types of investigations are unique and are changing perceptions about drug use and addiction in the law enforcement community,” said DEA Special Agent in Charge Karen Flowers. “Team 10 is bearing witness to the carnage and despair that each drug overdose victim leaves behind: families devastated, friends grief-stricken and the future of loved ones ripped away in an instant. That alone is one of the hardest things in life to understand and accept.
“Today’s plea deal sends a powerful message to anyone seeking to profit from selling drugs,” Flowers said. “If your client dies, the law will come for you and you will be prosecuted accordingly. These men made choices that deprived them of their hopes and dreams in their futures. Trevon Lucas is 23 years old and he just pleaded guilty to a crime that requires a 20-year sentence in federal prison. For Team 10 investigators and our community, today is bittersweet. Justice was served.”
The power to make a difference starts at home, beginning with returning unused, unwanted and expired medications susceptible to theft and abuse. This Saturday, April 27th, the DEA is providing a free and anonymous service to “Take Back” prescription drugs. There will be over 6,000 DEA collection sites nationally. DEA Take Back Day provides an actionable way for any American to step up and help combat this crisis by simply cleaning out their medicine cabinet. To find a location near you, go to www.DEATAKEBACK.com. Keep them safe. Clean them out. Take them back.
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’ imprisonment 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
Fifth Defendant Pleads Guilty to Laundering Millions of Dollars of Hard Narcotics Proceeds for Sinaloa CartelRead the Press Release
A Culiacan, Mexico man pleaded guilty to international money laundering in connection with his operation of 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, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Robert S. Brewer Jr. of the Southern District of California.
Gibran Rodriguez-Mejia, 31, was extradited from Mexico to San Diego in September 2018, and is the fifth Mexican-based defendant in this case to enter a guilty plea, doing so before U.S. Magistrate Judge Mitchell D. Dembin. Rodriguez-Mejia will be sentenced on July 8, 2019 before U.S. District Judge Roger T. Benitez.
Through his plea agreement, Rodriguez-Mejia admitted to laundering $3.5 million in drug proceeds. He coordinated with couriers, primarily located in Southern California, who smuggled the bulk of U.S. currency from the United States to Mexico. Rodriguez-Mejia also admitted that he arranged for currency to be smuggled to an exchange house in Tijuana, Mexico owned and operated by co-defendant Cesar Hernandez-Martinez, who pleaded guilty on April 4, 2019 and will be sentenced on July 8, 2019. After the money was converted to Mexican pesos, Rodriguez-Mejia provided financial accounts in Mexico into which the money was deposited for the benefit of the Mexican-based cartel drug traffickers.
In addition to the five defendants in this case, approximately 20 other individuals have entered guilty pleas and have been previously sentenced in related cases. Those cases have involved individuals based in the United States or individuals who have 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.
Omar Ayon-Diaz, Osvaldo Contreras-Arriaga and Joel Acedo-Ojeda have also pleaded guilty in this case and have been sentenced to 120 months, 132 months and 135 months in prison, respectively.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Diego Field Office conducted the investigation. Senior Trial Counsel Mark A. Irish of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Lawrence A. Casper of the Southern District of California prosecuted the case. The Justice Department’s Office of International Affairs provided significant support with the defendant’s extradition. The U.S. Attorney’s Office is working together in this matter with the Criminal Division’s Money Laundering and Asset Recovery Section.
Fifth Defendant Pleads Guilty to Laundering Millions of Dollars of Drug Proceeds for Sinaloa CartelRead the Press Release
Assistant U. S. Attorney Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – April 18, 2019
SAN DIEGO – Gibran Rodriguez-Mejia of Culiacan, Sinaloa, Mexico, pleaded guilty today to international money laundering in connection with his operation of 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 fifth defendant in this case to enter a guilty plea.
Through 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 owned and operated by co-defendant Cesar Hernandez-Martinez, who also recently entered a guilty plea in the case. After the money was converted to Mexican pesos, Mejia provided financial accounts in Mexico into which the money was deposited for the benefit of the Mexican-based cartel drug traffickers.
In addition to the five defendants in this case, approximately twenty other individuals have entered guilty pleas and been sentenced previously in related cases.
Rodriguez pleaded guilty before U.S. Magistrate Judge Mitchell D. Dembin. Rodriguez will be sentenced on July 8 at 9 a.m. before U.S. District Judge Roger T. Benitez. Rodriguez faces up to 20 years in prison and a maximum fine of $7 million (twice the value of the funds involved). 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 another (Cesar Hernandez-Martinez) entered his guilty plea on April 4, 2019 and will be sentenced on July 8, 2019 at 9:00 a.m. before Judge Benitez.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Diego Field Office conducted the investigation. Assistant U.S. Attorney Lawrence A. Casper of the Southern District of California and Senior Trial Counsel Mark A. Irish of the Criminal Division’s Money Laundering and Asset Recovery Section prosecuted the case. The Justice Department’s Office of International Affairs provided significant support with the defendant’s extradition. The U.S. Attorney’s Office is working together in this matter with the Criminal Division’s Money Laundering and Asset Recovery Section.
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 July 8, 2019.
INVESTIGATING AGENCY
Homeland Security Investigations
Jury Convicts Three Men of Trafficking $28 Million of CocaineRead the Press Release
Assistant U.S. Attorney Kevin Mokhtari (619) 546-8402, Special Assistant U.S. Attorney Ari Fitzwater (619) 546-8756, Special Assistant U.S. Attorney Emily Gibbons (619) 546-8419
NEWS RELEASE SUMMARY – April 17, 2019
SAN DIEGO – Three South American men were convicted by a federal jury late yesterday of trafficking approximately 1,230 kilograms (2,706 pounds) of cocaine worth more than $28 million on the high seas. The verdict came after a weeklong trial before U.S. District Judge Roger T. Benitez.
At trial, the government proved that on December 31, 2017, a U.S. Coast Guard Cutter responded to a report of a suspicious vessel traveling in the Eastern Pacific Ocean, approximately 100 nautical miles north of the Galapagos Islands, Ecuador. The Coast Guard Cutter Stratton launched a helicopter and two small boats to intercept the vessel.
As the helicopter closed in, the defendants – Adrian Andres Cortez-Quinonez, Segundo Marcial Dominguez-Caicedo and Victor Gaspar-Chichande – stopped their go-fast vessel to avoid detection. But as the helicopter circled the vessel, the defendants attempted to evade the helicopter.
The defendants eventually brought their vessel to a stop when they could not outrun the Coast Guard helicopter and then began jettisoning dozens of bails of cocaine overboard. They took off again, but a U.S. Coast Guard marksman onboard the helicopter disabled the fleeing vessel’s engines with precision. The Coast Guard detained the defendants and recovered the jettisoned cocaine. After the defendants were transported to the United States, agents with the Drug Enforcement Administration continued the investigation.
“The high seas are not a secret freeway for narco-traffickers to cross with impunity,” said U.S. Attorney Robert Brewer. “This verdict is proof that we are watching, and we will take whatever action necessary to prevent these dangerous drugs from hitting our streets. I appreciate the efforts of prosecutors Kevin Mokhtari, Ari Fitzwater and Emily Gibbons and our partners at the Coast Guard and the DEA. Their hard work has led to this outcome.”
“Thanks to the determined efforts of the Stratton’s officers and crew, as well as the helicopter detachment, these smugglers have been brought to justice,” said Eleventh Coast Guard District Commander, Rear Admiral Peter W. Gautier. “This seizure is just one example of the thousands of kilograms of narcotics seized every month by the Coast Guard. The Coast Guard will continue its tireless fight against trafficking of illegal narcotics at sea and the networks that threaten this country.”
“These traffickers attempted to smuggle more than one ton of cocaine into the United States - which would have had a devastating impact on our communities,” said DEA Special Agent in Charge Karen Flowers. “Due to the collaborative efforts of the Coast Guard and DEA, we were able to stop these traffickers and keep these deadly drugs out of our communities.”
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 are scheduled to be sentenced on July 15, 2019 before Judge Benitez.
DEFENDANTS Case Number 18cr0421
Adrian Andres Cortez-Quinonez Age: 24 Ecuador
Segundo Marcial Dominguez-Caicedo Age: 35 Colombia
Victor Gaspar-Chichande Age: 29 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)San Marcos Companies and Executives Charged with Tampering with Emission Control Devices on Diesel Truck FleetRead the Press Release
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – April 11, 2019
SAN DIEGO – A federal grand jury in San Diego today returned a six-count indictment charging three San Marcos companies, two managers and a technician with various felonies related to tampering with emission control devices on heavy-duty diesel trucks.
Diamond Environmental Services LP, Diamond Maintenance Services, LLC and Diamond Solid Waste, Inc. (collectively “Diamond”) of San Marcos, California, plus owner and manager Arie Eric De Jong III, manager Warren Van Dam and technician Jorge Leyva Rodriguez of ECM Diesel Programming were charged with conspiring to manipulate the electronic control module (ECM) on Diamond’s fleet of heavy duty diesel trucks. The alleged manipulation was designed to disable the monitoring system that would otherwise cause the truck to effectively become non-operational if the diesel emissions filter became too dirty with diesel particulates.
Since model year 2008, EPA regulations required all heavy-duty diesel trucks to be equipped with a computerized system of electronics and sensors that monitored all emission-related engine systems and components. If a malfunction or problem occurred within the emission system - for example, the diesel particulate filter, or DPF, became dirty with soot that needed to be “regenerated” or burned off - the monitoring system would cause a Malfunction Indicator/Check Engine Light to be illuminated in the truck’s cabin. If the hardware emission system problem was not resolved, the monitoring system could limit the top speed of the truck to as low as five miles per hour (an effect commonly referred to as “limp mode” or “power reduced mode”), providing an incentive for the truck’s operator to repair the truck.
The indictment alleges that the defendants agreed to reprogram the ECMs to avoid the costs associated with the need to regenerate the diesel particulate filters (DPFs) on the heavy-duty diesel trucks in the fleets operated by defendant Diamond Environmental Services, LP and Diamond Solid Waste Services, Inc., and maintained by Diamond Maintenance Services, LLC. According to the indictment, employees removed the ECMs from trucks in their fleet and shipped them out of California to be reprogrammed, and, in addition, defendant Jorge Martin Leyva Rodriguez travelled from Mexico to Diamond locations in San Marcos and San Diego to reprogram the ECMs.
The indictment alleges that, in order to keep trucks operating with DPFs that had not been cleaned by regeneration, employees punched holes through the honeycomb cores of the DPFs on some of the heavy-duty diesel trucks to allow the free flow of air through this portion of the emission system, without filtration. It is further alleged that in order to conceal the fact that the emissions systems on some of the heavy-duty diesel trucks were not operating properly, employees prepared false opacity (smog) test results for such trucks, using an entirely different truck to achieve passing results. According to the indictment, when the co-conspirators learned that action by the authorities was imminent, defendant Rodriguez returned to the Diamond facilities to reprogram the software of the ECMs on the truck fleet in order to conceal the 2016 alterations. Defendants Diamond Environmental Services, LP, Arie Eric De Jong III and Jorge Levya Rodriguez are charged with evidence tampering, based on the later alterations to the ECMs.
“We are all the victims of environmental crime,” said U.S. Attorney Robert Brewer. “We aren’t going to allow companies to take shortcuts and pollute the environment.” Brewer praised prosecutor Melanie Pierson and investigators from the FBI and the U.S. Environmental Protection Agency, Criminal Investigation Division, for protecting the public.
San Diego FBI Acting Special Agent in Charge Suzanne Turner noted, “Today’s indictments underscore the FBI’s continued commitment to our law enforcement partners in combatting environmental crime in San Diego County. The alleged activity impacts every citizen and visitor to San Diego by contributing to declining air quality and increasing public exposure to airborne pollutants. The FBI will continue to work diligently to protect the citizens of San Diego County from entities engaged in illegal business practices which result in environmental harm.”
“The defendants have been charged with conspiring to violate the Clean Air Act and tampering with the emissions control equipment on their commercial diesel trucks,” said Special Agent-in-Charge Jay M. Green of EPA’s criminal enforcement program in California. “The alleged crimes would increase air pollution linked to respiratory illnesses and environmental degradation. Today’s indictment serves as a reminder that EPA and our partners are steadfast in our commitment to protect human health and the environment.”
DEFENDANTS Criminal Case No. 18cr5382-GPC
Diamond Environmental Services, LP Organized: 1997 San Marcos, California
Diamond Maintenance Services, LLC Organized: 2004 San Marcos, California
Diamond Solid Waste Services, Inc. Incorporated: 2010 San Marcos, California
Arie Eric De Jong III Age: 52 San Marcos, California
Warren L. Van Dam Age: 52 San Marcos, California
Jorge Leyva-Rodriguez Age: 51 El Centro, California
SUMMARY OF CHARGES
Count 1
Conspiracy to Tamper with Monitoring Devices, 18 U.S.C. § 371
Maximum penalty: Five years in prison, fine of $250,000 ($500,000 for an organization)
Count 2-4 (charging Diamond Environmental Services, LP and De Jong)
Tampering with Monitoring Device, 42 U.S.C. §7413
Maximum Penalty: Two years in custody and/or $250,000 fine ($500,000 fine for an organization)
Count 5 (charging Diamond Environmental Services, LP; De Jong, Van Dam and Leyva-Rodriguez)
Tampering with Monitoring Device, 42 U.S.C. §7413
Maximum Penalty: Two years in custody and/or $250,000 fine ($500,000 fine for an organization)
Count 6 (charging Diamond Environmental Services, LP; De Jong and Leyva-Rodriguez)
Evidence Tampering, 18 U.S.C. §1512(c)(1)
Maximum Penalty: Twenty years and/or $250,000 fine
AGENCIES
Federal Bureau of Investigation
U.S. Environmental Protection Agency, Criminal Investigation 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.
National Crime Victims’ Rights Week 2019: “Honoring Our Past, Creating Hope for the Future”Read the Press Release
Victim Witness Coordinator Polly Montano (619) 546-8921
NEWS RELEASE SUMMARY – April 8, 2019
SAN DIEGO – National Crime Victims’ Rights Week – a time for law enforcement, prosecutorial agencies, victim advocates and community members to come together and support victims of crime – is April 7-13.
Upholding the rights of victims not only protects victims of crime, but enhances public safety and fosters public confidence in our criminal justice system. Agencies that participate in this weeklong tribute will acknowledge and honor crime victims nationwide.
The San Diego County Victim Assistance Coordinating Council (VACC) and the United States Attorney’s Office in San Diego invite you to attend the 30th annual Candlelight Tribute for Crime Survivors on Thursday, April 11, 2019 at 5:30 p.m. The tribute will be held at the San Diego Police Officers’ Association Hall, 8388 Vickers St., San Diego, CA 92111. The keynote speaker will be U.S. Attorney Robert S. Brewer, Jr. The Tribute is a time to memorialize victims and to hear inspirational words from local law enforcement agencies, victim advocates and personal stories from the victims themselves.
The Tribute is sponsored by the VACC. VACC is comprised of the following agencies: Alliance for Community Empowerment; the Crime and Trauma Recovery Program; the District Attorney’s Victim Assistance Program; the Drug Enforcement Administration (DEA) Victim Witness Program; the Federal Bureau of Investigation, Victim Assistance Program; the Center for Mindful Relationships; Mothers Against Drunk Driving (MADD); Mothers with a Message; Parents of Murdered Children; San Diego Police Department Crisis Intervention; San Diego County Sherriff’s Department; the United States Attorney’s Office Victim/ Witness Program; the U.S. Marshals Office; the U.S. Postal Inspection Service; and other victim advocates.
By providing a single, uniform message from these agencies and service providers, we can help increase awareness and improve the assistance provided to all crime victims.
To receive further information about National Crime Victims’ Rights Week, and ideas on how to serve victims in your community please visit www.ovc.gov or www.sdcvacc.com.
Bitcoin Dealer Sentenced to Two Years in Prison and Ordered to Forfeit Ill-Gotten GainsRead the Press Release
Assistant U. S. Attorney Robert Ciaffa (619) 546-7748
NEWS RELEASE SUMMARY – April 8, 2019
SAN DIEGO – Jacob Burrell Campos of Rosarito, Mexico, was sentenced today by U.S. District Judge Marilyn L. Huff to serve two years in prison and forfeit $823,357 in illicit profits for operating an unlicensed money transmitting business in connection with his sale of hundreds of thousands of dollars in Bitcoin to over 1,000 customers throughout the United States.
Burrell, a U.S. citizen, has been in custody without bail since his arrest on August 13, 2018. He pleaded guilty on October 29, 2018, admitting that he operated a Bitcoin exchange without registering with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury, and without implementing the required anti-money laundering safeguards.
According to the plea agreement, Burrell advertised his business on Localbitcoins.com, and communicated with his customers through email and text messages, often using encrypted applications. He negotiated a commission of 5 percent above the prevailing exchange rate, and accepted cash in person, through nationwide ATMs, and through MoneyGram. Burrell admitted that he had no anti-money laundering or “know your customer” program, and performed no due diligence on the source of his customers’ money.
Burrell admitted that, at first, he purchased his supply of Bitcoin through a U.S.-based, regulated exchange, but his account was soon closed because of the large number of suspicious transactions. He then resorted to a cryptocurrency exchange in Hong Kong, where he purchased a total of $3.29 million in Bitcoin, in hundreds of separate transactions, between March 2015 and April 2017.
Finally, Burrell admitted that he exchanged his U.S. cash, which he kept in Mexico, with Joseph Castillo, a San Diego-based precious metals dealer, and that between late 2016 and early 2018, he and others imported into the United States, on an almost daily basis, a total of over $1 million in U.S. currency, in amounts slightly below the $10,000 reporting requirement.
In a sentencing memorandum, prosecutors argued that unlicensed money transmitters pose a serious threat to the integrity of the U.S. financial system by creating a hole in the anti-money laundering regulatory scheme and allowing criminals to launder their cash proceeds without scrutiny. In this case, Burrell provided his clients with anonymity and privacy, and exchanged over $1 million in unregulated cash.
U.S. Attorney Robert Brewer said, “The federal government will continue to investigate and prosecute all white collar criminals who refuse to comply with the anti-money laundering laws of the United States, and who assist others in avoiding scrutiny of their ill-gotten gains. I applaud the excellent work of prosecutor Robert Ciaffa and federal agents who investigated these crimes.”
“Today’s sentencing of Burrell is a reminder to those illegal and unlicensed money transmitters that the laws and rules apply to crypto currency dealings just as they do to other types of financial transactions,” said David Shaw, Special Agent in Charge for Homeland Security Investigations in San Diego. “HSI Special Agents are proud to work with our law enforcement partners to ensure the integrity of the U.S. financial system, and we will continue to adapt to enforce laws across all borders, including cyberspace and the Darknet.”
DEFENDANT Case Number 18CR3554-H
Jacob Burrell-Campos Age: 22 Rosarito, Baja California, Mexico
Count 1: Conducting an unlicensed money transmitting business, 18 USC 1960.
Statutory maximum: 5 years prison, $250,000 fine.
AGENCIES
Homeland Security Investigations
Internal Revenue Service
Postal Inspection Service
Fallbrook Man Sentenced to 151 Months in Fentanyl Overdose DeathRead the Press Release
NEWS RELEASE SUMMARY – April 5, 2019
SAN DIEGO – Corey Bernard Green of Fallbrook was sentenced today by U.S. District Judge Anthony J. Battaglia to 151 months in prison for distributing the fentanyl that caused the death of 34-year-old Joseth Adam Sellars on November 3, 2017.
On November 2, 2017, Sellars told his wife, Rebecca Sellars, that he had been sober for about 100 days. Two days later, she woke up in the morning and found him lying face down on their living room floor. She called 911 but it was too late. Law enforcement arriving at the scene observed drug paraphernalia and a white powdery substance near his body.
The investigation of Sellars’ death found text messages between Sellars and Green indicating that Green had supplied heroin laced with fentanyl to Sellars on November 3, 2017, and that Sellars had taken an Uber to Green’s residence to pick up the substance. Green was also determined to have conducted a Google search for information related to Sellars’ death, Fallbrook and November 3.
The Government’s sentencing papers noted that this case was a “prime example of the extraordinarily devastating impact that fentanyl, a drug far more potent than heroin, has on lives.” Fentanyl is anywhere from 25 to 50 times more potent than heroin. As Rebecca Sellars explained in a statement filed with the Government’s sentencing papers, “[i]n an instant, the earth stopped spinning, the sun ceased shining, and all I could see was a world that I didn’t want to live in anymore.” During sentencing, Ms. Sellars told the Court that, while her husband was in treatment, she told Mr. Green directly to “leave my husband alone” and argued that this was, therefore not simply “a tragic accident.” Indeed, on the morning she awoke and discovered her husband deceased from the overdose, Ms. Sellars said, “I woke up in a very good mood because I believed my husband was 102 days sober.”
In imposing the 151 month sentence, Judge Battaglia explained that, “There is nothing more serious than the loss of life…” He also noted that, “No matter what we do, it will not bring Mr. Sellars back” and that Ms. Sellars’ statement was “very impactful.”
“As the opioid crisis continues to rage on, my office will zealously pursue cases against people who distribute fentanyl and other illicit drugs that, tragically, have the power to destroy lives,” said U.S. Attorney Robert S. Brewer, Jr. “I commend prosecutors Larry Casper and Tim Coughlin, the Sheriff’s Department, the San Diego Medical Examiner’s Office and the District Attorney’s Office for their outstanding work in this case.”
In June of 2017, the San Diego Sheriff's Department took proactive measures to identify, investigate and arrest individuals who were distributing dangerous substances, such as fentanyl laced cocaine and dangerous opiates, into our communities. The Sheriff's Department began delegating resources in the initial stages of overdose investigations to develop critical evidence which might have been overlooked before the opioid crisis became a reality for many families. It is the Sheriff's Department goal to remove these dangerous drugs from our streets and hold people like Corey Green accountable for endangering the lives of others with reckless abandon.
DEFENDANT Case Number 18-cr-2249-AJB
Corey Bernard Green Age: 42 Fallbrook, California
SUMMARY OF CHARGE TO WHICH GUILTY PLEA ENTERED
Distribution of Fentanyl – Title 21 U.S.C. Section 841(a)
Maximum Penalty – 20 years in custody and $1 million fine
INVESTIGATING AGENCIES
San Diego Sheriff’s Department
San Diego Sheriff’s Department Regional Crime Lab
San Diego Medical Examiner’s Office
San Diego District Attorney’s Office
United States Attorney’s Office
Sinaloa Cartel Money Launderer Pleads Guilty; Admits Laundering $13 Million in Drug MoneyRead the Press Release
NEWS RELEASE SUMMARY – April 4, 2019
SAN DIEGO – Cesar Hernandez-Martinez of Tijuana pleaded guilty in federal court today to managing and supervising an “extensive” international money laundering organization that smuggled $13 million in narcotics proceeds from the United States to Mexico.
The narcotics - multi-kilogram quantities of cocaine, methamphetamine and heroin – were smuggled into the United States from Mexico by a drug-trafficking organization that Hernandez-Martinez acknowledged was a part of, or affiliated with, the Sinaloa Cartel.
Hernandez-Martinez, 29, was extradited from Mexico to the United States in September 2018 to face these charges. Through his plea agreement, Hernandez-Martinez admitted that, from approximately April 2013 until November 2015, he owned and operated currency exchange houses in Tijuana that received smuggled drug proceeds. Hernandez-Martinez further admitted to knowing that money received was from narcotics trafficking activity in the United States. Hernandez-Martinez also coordinated couriers involved in smuggling this currency from the United States to Mexico, ensuring that they picked up the currency from the correct sources who were primarily located in Southern California.
Hernandez-Martinez pleaded guilty before U.S. Magistrate Judge Bernard G. Skomal. Hernandez-Martinez will be sentenced on July 8, 2019 at 9:00 a.m. before U.S. District Judge Roger T. Benitez. Hernandez-Martinez faces up to 20 years in prison and a maximum fine of $26 million (twice the value of the funds involved). Three other defendants previously entered guilty pleas in this case and were sentenced (Omar Ayon-Diaz; Osvaldo Contreras-Arriaga; and Joel Acedo-Ojeda).
The U.S. Attorney’s Office is working this matter together 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
Cesar Hernandez-Martinez Age: 29 Tijuana, Mexico
SUMMARY OF CHARGE TO WHICH GUILTY PLEA ENTERED
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: 20 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.
INVESTIGATING AGENCY
Homeland Security Investigations
Sinaloa Cartel Money Launderer Pleaded Guilty to Laundering $13 Million in Hard Narcotics ProceedsRead the Press Release
A man from Tijuana, Mexico pleaded guilty in federal court today to managing and supervising an “extensive” international money laundering organization that smuggled, from the United States to Mexico, through Southern California and elsewhere, under his direction, $13 million of narcotics proceeds.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert S. Brewer Jr. for the Southern District of California and Special Agent in Charge Dave Shaw of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Diego Field Office, made the announcement.
Cesar Hernandez-Martinez, 29, pleaded guilty to conspiracy to commit international money laundering before U.S. Magistrate Judge Bernard G. Skomal. Hernandez-Martinez was extradited from Mexico to the United States in September 2018. The narcotics -- multi-kilogram quantities of cocaine, methamphetamine and heroin – were smuggled into the United States from Mexico by a drug trafficking organization that Hernandez-Martinez acknowledged was a part of, or affiliated with, the Sinaloa Cartel. Through his plea agreement, Hernandez-Martinez admitted that, from approximately April 2013 until November 2015, he owned and operated currency exchange houses in Tijuana that received smuggled proceeds. Hernandez-Martinez further admitted to knowing that these smuggled proceeds were from narcotics trafficking activity in the United States. According to the plea agreement, Hernandez-Martinez also coordinated couriers involved in smuggling this currency from the United States to Mexico, ensuring that they picked up the currency from the correct sources who were primarily located in Southern California.
Hernandez-Martinez will be sentenced on July 8, 2019 before U.S. District Judge Roger T. Benitez. Three other defendants previously entered guilty pleas in this case and have been sentenced including:
- Joel Acedo-Ojeda, 34, of Culiacan, Sinaloa, Mexico, pleaded guilty to conspiracy to commit international money laundering and was sentenced to serve 135 months in prison and ordered to pay a $20,000 fine;
- Omar Ayon-Diaz, 40, of Tijuana, pleaded guilty to conspiracy to commit international money laundering and was sentenced to serve 120 months in prison and was ordered to pay a $15,000 fine; and
- Osvaldo Contreras-Arriaga, 31, of Culiacan, Sinaloa, Mexico, pleaded guilty to conspiracy to import cocaine and was sentenced to serve 132 months in prison and pay a $1,000 fine.
HSI San Diego conducted the investigation. Senior Trial Counsel Mark A. Irish of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Lawrence A. Casper of the Southern District of California are prosecuting the case.
Twenty Defendants Charged in Drug Indictments; One Alleged Trafficker Charged in Death of Carfentanil UserRead the Press Release
Assistant U. S. Attorney A. Dale Blankenship (619) 546-6705
NEWS RELEASE SUMMARY – March 27, 2019
SAN DIEGO – Three federal indictments unsealed in San Diego today charge 20 people, including documented gang members and associates, with trafficking in oxycodone, methamphetamine, cocaine, marijuana and ultra-deadly carfentanil from homes in City Heights, College Grove and Imperial Beach.
One defendant, Dat Pham Tien Tran aka “Damian,” is charged with distribution of carfentanil resulting in the death of his brother’s longtime girlfriend. The brother, Darren Pham Tran aka “Denny,” is charged with conspiracy to distribute carfentanil and oxycodone. According to a search warrant affidavit, Darren Pham Tran, who overdosed on August 25, 2017 but survived, found his girlfriend dead in her car a few days later, on September 3, 2017.
Early this morning, members of the Drug Enforcement Administration, Federal Bureau of Investigation and other law enforcement agencies made numerous arrests and searched 11 locations in San Diego. The brothers were arrested in College Grove and 12 others were taken into custody in locations throughout San Diego and Riverside counties. Another defendant was in state custody and five were still at large as of 2 p.m.
“As the opioid epidemic rages across the nation, we will do everything we can to save lives,” said U.S. Attorney Robert Brewer. “That includes pursuing charges against dealers of these drugs that are killing people every single day in this country. In the last several months we’ve prosecuted about a dozen cases in which dealers were accused of providing the illegal drugs that resulted in death.” Brewer praised prosecutor Dale Blankenship and local and federal investigators for their tireless efforts to keep dangerous drugs off the streets.
“Gang members profited off the trafficking of various dangerous drugs to include carfentanil – a synthetic opioid 100 times more potent than fentanyl,” said DEA Special Agent in Charge Karen Flowers. “Purging this gang from our community exemplifies our commitment to fighting violent street gangs and their impact on the opioid epidemic.”
“The federal indictments in this case emphasize the commitment of the San Diego FBI to combat the distribution of dangerous drugs in our communities,” said Suzanne Turner, Acting Special Agent in Charge of FBI San Diego. “This investigation, led by our DEA partners and supported by our federal, state and local task force members, demonstrates the combined effort and resources dedicated to keep San Diego a safer place for us to live.”
According to charging documents, the investigation targeted gang members from the Oriental Crips, Tiny Rascal Gang, Oriental Killer Boys, Viet Boys and Linda Vista 13 who set aside rivalries in order to maximize drug trafficking profits.
During the investigation, law enforcement learned that several of the defendants were involved in the distribution of prescription opioids and counterfeit prescription opioids laced with carfentanil.
Additionally, several of the defendants distributed marijuana to locations along the eastern seaboard using United Parcel Service and the United States Postal Service, according to court documents. Investigators identified defendant Manoxay Insisienmay as the principle marijuana distributor who obtained marijuana from grow operations in the Central District of California and then distributed it locally or shipped it out of state. Court records said Insisienmay operated from local drinking establishment “City Pub” on El Cajon Boulevard. According to the court documents, investigators learned that defendants processed and packaged marijuana at the apartment attached to the rear of the “City Pub.” Investigators seized numerous parcels containing marijuana destined for Maryland where other individuals then distributed the marijuana.
During the investigation, authorities also seized parcels containing drug proceeds mailed from out-of-state locations to San Diego, and identified several individuals operating “funnel accounts” on behalf of Insiseinmay. Drug distributors on the east coast made cash deposits into the funnel accounts; the defendants then withdrew the cash in San Diego. Investigators identified in excess of $100,000 in cash transactions through the funnel accounts.
Investigators executed three marijuana-grow search warrants in the Central District of California and seized over 7,000 marijuana plants. In addition, investigators executed a search warrant at an Air BnB and seized over $50,000 from out of state marijuana buyers who traveled from Florida to San Diego to buy marijuana.
DEFENDANTS
Case Number 19CR0899-H
Name
Age
Hometown
DAT PHAM TIEN TRAN (1),
aka “Damian,”
31
San Diego
DARREN PHAM TRAN (2),
aka “Denny,”
29
San Diego
ANTHONY VIBOUNPHONH (3),
aka “Ant,”
33
San Diego
ARMANDO ALAN ANGELES (4),
44
Imperial Beach
KRISTINE TUYET TRUONG (5),
aka “K,”
29
San Diego
SUMMARY OF CHARGES
Conspiracy to Distribute Oxycodone and Carfentanil (Title 21, U.S.C., Secs. 841(a)(1), 846);
Distribution of Oxycodone and Carfentanil Resulting in Death (Title 21, U.S.C, Secs. 841(a)(1) & (b)(1)(C);
Distribution of Oxycodone and Carfentanil Resulting in Serious Bodily Injury (Title 21, U.S.C, Secs. 841(a)(1) & (b)(1)(C);Maximum Penalties: For Conspiracy to Distribute Oxycodone and Carfentanil Charge: 20 years’ imprisonment and a $1 million fine;
Maximum Penalties: For Distribution of Oxycodone and Carfentanil Resulting in Death and Serious Bodily Injury Charges: life in prison with a mandatory minimum sentence of 20 years and a $1 million fine
Case Number 19CR0900-H
Name
Age
Hometown
ERIC JOJO ANGELES (1),
46
San Diego
JIMMY SENGPASEUTH (2),
27
San Diego
NAVA JEFF PHETHDARA (3),
32
San Diego
JAVIER PENALOZA (4),
24
San Diego
MINH PHAM (5),
24
San Diego
NALONG LAA KEOMANIVONG (6),
aka “Elmo,”
37
San Diego
ANTHONY VIBOUNPHONH (7),
aka “Ant,”
33
San Diego
DAT PHAM TIEN TRAN (8),
aka “Damian,”
31
San Diego
SUMMARY OF CHARGES
Conspiracy to Distribute Cocaine (Title 21, U.S.C., Secs. 841(a)(1), 846);
Possession of Cocaine with Intent to Distribute (Title 21, U.S.C, Secs. 841(a)(1));
Possession of Methamphetamine with Intent to Distribute (Title 21, U.S.C, Secs. 841(a)(1)).Maximum Penalties: For cocaine and methamphetamine charges: life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.
Case Number 19CR0901-H
Name
Age
Hometown
MANOXAY INSISIENMAY (1),
aka “Mano,”
50
San Diego
MANOSANG ANOUNOY INSISIENMAY (2)
aka “Dustin,”
22
San Diego
AMPHONE VINSON (3),
58
Mountain Center, California
DAORINE DETHAMPHAIVAN (4),
aka “Tik,”
44
Anza, California
DAT PHAM TIEN TRAN (5),
aka “Damian,”
31
San Diego
EGZON HAXHIHJA (6),
aka “X,”
aka “Florida,”
28
Jacksonville, Florida
TROY MICHAEL COOLEY (7),
33
San Diego
LINDA PHAM INSISIENMAY (8),
36
San Diego
MALIVE PARKER (9),
26
San Diego
HEATHER ODOM (10),
23
San Diego
SUMMARY OF CHARGES
Marijuana Distribution Conspiracy – Title 21, U.S.C., Section 841(a)(1) and 846
Maximum penalty: 40 years’ imprisonment, with a mandatory minimum sentence of 5 years and a
$5 million fine.
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h);
Maximum penalty: 20 years’ imprisonment and $500,000 fine.
AGENCIES
Drug Enforcement Administration
Federal Bureau of Investigation
United States Postal Inspection Service
Homeland Security Investigations
San Diego Police Department
San Diego Sheriff Department
If you have information regarding the fugitives in this case, please contact the San Diego DEA at 858-616-4100 or the San Diego FBI at 858-320-1800.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Leader of Hooligans Motorcycle Gang Admits Stealing Jeeps throughout San Diego CountyRead the Press Release
Assistant U.S. Attorneys Andrew J. Galvin (619) 546-9721 and Joseph S. Green (619) 546-6955
NEWS RELEASE SUMMARY – March 26, 2019
SAN DIEGO – Jimmy Josue Martinez, a leader of the Hooligans motorcycle gang, pleaded guilty today and admitted to participating in a sophisticated scheme to steal dozens of Jeep Wranglers in San Diego County using handheld electronic devices and stolen codes.
According to court records, the Hooligans are responsible for the theft of more than 150 Jeep Wranglers worth approximately $4.5 million within San Diego County since 2014. The Hooligans used high-tech methods to disable security systems and steal Jeeps in just a few minutes, in the middle of the night, while unsuspecting owners slept nearby. After stealing the Jeeps in San Diego County, the Hooligans transported them to Tijuana, Mexico, where the vehicles were sold or stripped for parts.
In his plea agreement, Martinez admitted to stealing Jeeps in Pacific Beach, Serra Mesa, Chula Vista, Mission Valley, Ocean Beach, Hillcrest and North Park. Martinez also admitted to leading one of the Hooligans theft crews, which would target a specific Jeep days before the actual theft would take place. Martinez and members of his theft crew obtained the vehicle identification number in advance and then managed to get secret key codes, which allowed them to create a duplicate key for that particular Jeep. Then, during the theft, they disabled the alarm system, programmed the duplicate key using a handheld electronic device, and quietly drove away without notice.
In November 2014, San Diego Police Department patrol units attempted to stop Martinez after he participated in the theft of a Jeep in Mira Mesa. Martinez failed to pull over and drove south along Interstate 805 at speeds exceeding 120 miles per hour. Customs and Border Patrol officers unsuccessfully attempted to stop Martinez at the United States/Mexico border. In his plea agreement, Martinez admitted to ramming a vehicle stopped in front of him multiple times in order to maneuver around concrete barriers and drive south into Mexico.
“The joy ride is over for Mr. Martinez,” said U.S. Attorney Robert Brewer. “These thefts were audacious and sophisticated and created hassle and heartache for scores of Jeep owners. I congratulate prosecutors Andrew Galvin and Joseph S. Green, the FBI and members of the Regional Auto Theft Task Force for putting together a strong case against a gang that, unfortunately, has lived up to its name.”
“This case is a reminder that our proximity to the international border provides increased opportunity for transnational organized crime,” said FBI Acting Special Agent in Charge Suzanne Turner. “The Hooligans crime group took advantage of this proximity by stealing millions of dollars’ worth of vehicles from San Diegans in order to hide, chop, sell, and profit from those vehicles in Mexico. The FBI worked day and night, alongside our partners at the Regional Auto Theft Task Force (RATT), to bring Martinez, the leader of this transnational organization, to justice.”
Martinez and eight other members of the Hooligans were charged in a grand jury indictment in May 2017. As part of his plea, Martinez agreed to pay at least $246,396 in restitution. Martinez will appear for sentencing on June 24, 2019 at 10:30 a.m. before U.S. District Judge John A. Houston. Of the nine Hooligans charged, six have pleaded guilty and three remain fugitives.
DEFENDANT: Case Number 17-CR-1314-JAH
Jimmy Josue Martinez Age: 33 Tijuana, Mexico
SUMMARY OF CHARGES
Conspiracy to Commit Transportation of Stolen Vehicles in Foreign Commerce – Title, 18 U.S.C., Section 371
Maximum penalty: 5 years’ imprisonment; $250,000 fine; restitution.
AGENCIES
Federal Bureau of Investigation
Regional Auto Theft Task Force, which includes the following agencies:
U.S. Border Patrol
California Highway Patrol
National Insurance Crime Bureau
California Department of Insurance
California Department of Motor Vehicles
San Diego County District Attorney’s Office
San Diego County Probation Department
San Diego County Sheriff’s Department
ICE Enforcement and Removal Operations
and police departments from La Mesa, Chula Vista, National City, Oceanside and San DiegoFormer Social Security Administration Employee Admits Stealing Thousands of Dollars in BenefitsRead the Press Release
Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924
NEWS RELEASE SUMMARY – March 15, 2019
SAN DIEGO – Former U.S. Social Security Administration employee Nam-Phong Hung Le pleaded guilty in federal court today to two felony charges, admitting he stole tens of thousands of dollars in government benefits intended for the elderly and the disabled.
During a hearing before U.S. District Judge Janis L. Sammartino, Le acknowledged that while he was employed as a technical expert at the Social Security Administration, he set up a bank account in the name of two recipients of Supplemental Security Income (SSI). Le admitted that he knew both recipients had left the United States and were therefore ineligible for SSI, and that he took over the newly created bank account and personally received almost $30,000 in SSI payments in their names without their knowledge. Le further admitted that his fraud cost the State of California over $20,000 in medical premium payments made to the SSI recipients after they had left the country, which made them ineligible for subsidized medical benefits.
In his plea agreement, Le, 37, admitted that he also exploited his position with the Social Security Administration to identify SSI recipients with “underpayments” – that is, individuals owed lump sum cash payments by the Social Security Administration. Le admitted that he used the same fraudulent bank account that he had previously created to steal more than $15,000 in money owed to six other individuals, including one deceased person. Le admitted that he withdrew the money at ATM locations throughout Southern California and deposited the cash into his personal bank accounts.
“The taxpayer has a right to expect that public servants will perform their duties honorably, and that programs intended to assist our nation’s most vulnerable individuals will not be compromised from within,” said United States Attorney Robert Brewer. “The United States Attorney’s Office is committed to ensuring the integrity of Social Security Administration employees, and maintaining the public’s trust in one of our nation’s oldest and most important aid programs.” Brewer also praised the work of federal prosecutor Jeffrey D. Hill and investigators with the Social Security Administration – Office of the Inspector General.
“There is nothing more important to federal employment than public trust. When that trust is violated, it impacts the entire federal workforce and those they serve,” said Robb Stickley, the special agent in charge of Social Security's San Francisco Field Division, which is responsible for Southern California.
As a part of his plea agreement, Le agreed to pay full restitution to the Social Security Administration and the State of California’s Department of Health Care Services, and to a separate order of criminal forfeiture equal to the amount of money that Le stole from the Social Security Administration through his fraudulent bank account. Le is scheduled to be sentenced on July 12, 2019.
DEFENDANT Case Number 19-cr-0532-JLS
Nam-Phong Hung Le Chula Vista, CA Age: 37
SUMMARY OF CHARGES
Social Security Fraud – Title 42, U.S.C., Section 1383a(a)(3)
Maximum penalty: 10 years’ imprisonment, $250,000 fine, restitution.
Theft of Public Property – Title 18, U.S.C., Section 641
Maximum penalty: 10 years’ imprisonment, $250,000 fine, restitution, forfeiture.
AGENCIES
Social Security Administration – Office of the Inspector General
Westside Crips Gang Member Sentenced to 82 MonthsRead the Press Release
Assistant U.S. Attorneys Alessandra P. Serano (202) 252-5843 or Joseph Orabona (619) 546-7951
NEWS RELEASE SUMMARY – March 8, 2019
SAN DIEGO – A leader of the Westside Crips was sentenced to 82 months in prison yesterday for his aggravating role in a racketeering conspiracy involving sex trafficking, narcotics trafficking and other violent crimes as well as possession of a controlled substance with the intent to distribute.
According to court records, Corey DeShawn Austin, aka “Westwood,” admitted to his membership and association with the Westside Crips, which primarily operated in Oceanside and elsewhere. Austin pleaded guilty to RICO Conspiracy and Possession with Intent to Distribute Controlled Substances on August 31, 2018. In furtherance of these crimes, Austin, the lead defendant, admitted he engaged in promoting prostitution of adult females between 2013 and 2015, including while he was in state custody for another offense. Austin further admitted he possessed narcotics for sale in 2013. Austin also admitted he promoted the Westside Crips during the RICO conspiracy through photos posted of himself throwing up gang signs and wearing gang colors showing his allegiance to Westside Crips on social media between 2013 and 2016.
At sentencing, the parties disputed whether Austin had an aggravating role in the RICO conspiracy – a finding that would mean a longer sentence. After hearing testimony from the government and defense expert witnesses at an evidentiary hearing on March 4, 2019, and reviewing the submissions by the parties, U.S. District Judge John A. Houston ruled yesterday that Austin had an aggravating role in the conspiracy because the testimony and evidence proved that he managed, supervised, and directed the criminal activity conducted by other members of the Westside Crips. Judge Houston noted that Austin’s conduct was particularly aggravating because he was managing, supervising and directing other gang members while he was in prison, using a contraband prison cell phone.
Austin was charged in 2017 as part of a larger investigation involving twelve other members of the Westside Crips Criminal Enterprise. The following table provides a summary of the crimes and sentences for 10 of the other defendants who have been convicted and sentenced in this case:
Defendant
Charge(s)
Sentence
Ameer Fareed Roby
aka “Tiny Dum Dum”
RICO Conspiracy
48 months in prison,
3 years supervised release
Michael Anthony Sullivan
aka “Du-Low”
RICO Conspiracy
36 months in prison,
3 years supervised release
Peter Andrew Miranda
aka “Fat Boy”, “Baby Rocks”, “Lil’ Burger”
RICO Conspiracy
45 months in prison,
3 years supervised release
Shane Robert Anderson
aka “Tiny Westwood”,
“Tiny West”
RICO Conspiracy
28 months in prison,
3 years supervised release
Jasiri Malcolm Lacey
aka “Baby Westwood”,
“Baby West”
RICO Conspiracy
72 months in prison,
3 years supervised release
Demetrius Montre McFarland
aka “Mechii Ruu”
RICO Conspiracy
52 months in prison,
3 years supervised release
Travion McHenry
aka “Too Much”
RICO Conspiracy
Drug Trafficking
54 months in prison,
3 years supervised release
Richard Cleveland
aka “Face”
RICO Conspiracy
57 months in prison,
3 years supervised release
Larry Darnell Monroe
RICO Conspiracy
Drug Trafficking
151 months in prison,
3 years supervised release
180 months in prison,
3 years supervised release
Umesh Oza
aka “Kevin”
RICO Conspiracy
4 months in prison,
180 days home confinement,
3 years supervised release
“The sentence imposed yesterday for one of the leaders of the Westside Crips demonstrates the seriousness of these crimes and will hopefully deter younger members of the community from becoming members of criminal street gangs,” said U.S. Attorney Robert S. Brewer. “Sex trafficking is a crime that has long-lasting and devastating effects on the women who are controlled by gang members. This office will continue to target criminal street gangs that promote serious crimes, such as sex trafficking, narcotics trafficking, and other violent crimes in our communities.”
Brewer praised prosecutors Alessandra Serano and Joseph Orabona and law enforcement partners for investigation and legal work that has resulted in a halt to dangerous gang activity.
“One of the top priorities for the DEA in San Diego is dismantling criminal street gangs that profit by selling sex and drugs in our community. The profit, cold hard cash, in turn fuels the violence on our streets,” said Special Agent in Charge Karen Flowers. “DEA will continue to target and put away criminal street gang members like Mr. Austin because it makes San Diego County a safer place to live.”
“For over a decade, this sophisticated street gang terrorized the streets of Oceanside and the surrounding areas for profit,” said IRS Criminal Investigation’s Special Agent in Charge Ryan L. Korner. “Our agency plays a unique role in federal law enforcement’s resolve to dismantle criminal gang enterprises. Our agents target the profit and financial gains of these violent organizations, following the money in an effort to disrupt these organizations and bring their members to justice.”
“The Oceanside Police Department would like to thank the U.S. Attorney's Office and other law enforcement agencies for their collaboration and hard work during this operation. “It is collective efforts like this that highlight why the San Diego region is a model for other law enforcement agencies to emulate, to keep their communities safe,” said Oceanside Police Chief Frank McCoy.
The remaining defendant, William Bright, has a sentencing hearing on May 13, 2019.
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 Number: 17CR0270-JAH
Corey DeShawn Austin aka “Westwood” Age: 38 Oceanside, CA
SUMMARY OF CHARGES
Title 18, United States Code, Section 1962(d) - Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity
Maximum Penalties: 20 years’ in prison, a fine of $250,000, three years of supervised release
Title 21, United States Code, Section 841(a)(1) – Possession with Intent to Distribute Controlled Substances
Maximum Penalties: 5 years’ in prison, a fine of $250,000, three years of supervised release
AGENCIES
North County Narcotics Task Force
Drug Enforcement Administration
Oceanside Police Department
Internal Revenue Service
Former MLB All-Star Pitcher Esteban Loaiza Sentenced to Three Years for Cocaine TraffickingRead the Press Release
Assistant U. S. Attorney Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – March 8, 2019
SAN DIEGO – Former Major League Baseball All-Star pitcher Esteban Loaiza was sentenced in federal court today to 36 months in prison for knowingly and intentionally possessing 20 kilograms - about 44 pounds - of cocaine with intent to distribute.
In his plea agreement, Loaiza admitted that he took possession of a silver Mercedes-Benz sport utility vehicle on February 9, 2018 that he knew contained cocaine. He drove the SUV to a townhouse he’d rented in Imperial Beach, where he transferred the 20 kilograms to another vehicle in the garage. He admitted he did so with the intent to distribute the cocaine to another person.
“As a professional athlete, Esteban Loaiza earned tens of millions of dollars and the admiration of baseball fans across the U.S. and Mexico,” said U.S. Attorney Robert Brewer. “And yet he sacrificed his reputation - and now his freedom - to become a cocaine trafficker. No one is above the law, and that includes Major League all-star pitchers.”
“Mr. Loaiza lived every young boy’s dream as an All-Star baseball player. And yet, he chose to be a drug dealer,” said DEA Special Agent in Charge Karen Flowers. “He chose to break the law for profit. He chose to make a buck off someone’s addiction. Today, society chose to hold him accountable and took away his freedom.”
According to the government’s sentencing memorandum, Loaiza’s rented townhouse was a “stash house” used to distribute cocaine and lacked furniture or personal belongings. Law enforcement located the cocaine concealed within a factory-built compartment in the rear cargo area of a minivan parked in the garage under baseball bags bearing Loaiza’s name. The packages of cocaine are depicted in the attached photos from the government’s sentencing papers.
In court today, Assistant U.S. Attorney Larry Casper highlighted aggravating factors that he said make this crime more troubling, including the significant quantity of cocaine, Loaiza’s active and involved participation in the criminal venture, and his privileged background.
Casper described the amount of cocaine as “very substantial even in this border district. That quantity represents tens of thousands of doses of a highly addictive drug that so often has a devastating impact on the lives of so many - not only in our community but well beyond.”
Casper also noted that the defendant was not merely a courier. He had full knowledge of what he was transporting; he rented and maintained the stash house and he transported and transferred 20 packaged bricks of cocaine himself, from one vehicle to another.
“This defendant had every advantage before engaging in this crime,” Casper said. “Mr. Loaiza had fame, he had fortune. He earned significant accolades in baseball and had opportunities many can only dream of. He was certainly looked up to by many youngsters as a success and as a figure to emulate. These circumstances are very different from many of the defendants that this court sees. In some sense, this case is akin to circumstances in which an individual abuses a position of trust in committing a crime.”
After handing down the sentence, U.S. District Court Judge Janis L. Sammartino acknowledged the defendant’s history as a baseball star. “The story changes,” she told him. “It’s not just a success story…But it’s still something people can learn from.”
Loaiza was allowed to remain free on bond and ordered to report to authorities on April 19.
Brewer praised Assistant U.S. Attorneys Larry Casper and Jarad Hodes for their excellent work on the case. “Because of Larry, Jarad and our law enforcement partners, this defendant will no longer be free to bring destructive drugs into our communities.”
“We are grateful for the perseverance that our law enforcement partners have demonstrated during the past several months,” said San Diego Sector Chief Patrol Agent Rodney Scott. “Collaboratively, our efforts resulted in Esteban Loaiza’s just conviction and sentencing.”
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCEDTF), a partnership that brings together the combined expertise and unique abilities of federal, state, and local law enforcement agencies. The principal mission of the OCEDTF 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 Number 18CR1743-JLS
Esteban Antonio Loaiza Age: 47 Imperial Beach, California
SUMMARY OF CHARGES
Possession of Cocaine with Intent to Distribute – Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Life in prison and $10 million fine
AGENCIES
United States Drug Enforcement Administration
United States Border Patrol
San Diego Sheriff’s Department
Peter Mazza Sworn in as Second-in-Command at U.S. Attorney’s OfficeRead the Press Release
Kelly Thornton 619-546-9726
NEWS RELEASE SUMMARY – February 28, 2019
SAN DIEGO – Peter J. Mazza, a trial lawyer and former federal prosecutor, rejoined the U.S. Attorney’s Office today as second-in-command of one of the busiest federal districts in the nation.
Mazza, who was selected by U.S. Attorney Robert Brewer, was sworn in by Chief U.S. District Judge Larry Burns during a ceremony this morning. As First Assistant U.S. Attorney, Mazza will oversee the day-to-day operations of the office and serve as a trusted advisor to the U.S. attorney.
During his eight years as a prosecutor in the San Diego office beginning in 2006, Mazza worked in the General Crimes Section, the Organized Crime Drug Enforcement Task Forces Section and the Major Frauds and Special Prosecutions Section, handling a wide variety of complex and significant cases. Mazza led many investigations involving crimes such as multi-million dollar tax and bank fraud schemes, public corruption, racketeering, extortion, money laundering and fraud.
Mazza left the office in 2014 to become a partner at Jones Day, specializing in business and tort litigation.
Brewer, who was sworn in as U.S. Attorney on January 16, previously worked at Jones Day, where he met Mazza briefly before moving to another firm. The two overlapped for a couple of months in 2014. Brewer said he was impressed by Mazza’s work experience.
“I am excited that the office will once again benefit from the depth and breadth of Pete’s expertise and knowledge related to our work and our mission,” U.S. Attorney Brewer said. “His sterling reputation, trial experience, and our shared vision for the office made him the clear choice. We and the entire Department of Justice are tremendously fortunate that he has decided to bring his legal skill, extraordinary judgment and professional experience back to our office.”
Mazza received his Bachelor of Arts in History from Yale University, graduating cum laude, and was captain of the varsity football team. He received his law degree from the University of Michigan Law School, graduating with distinction.
The U.S. Attorney’s Office enforces federal criminal laws in the Southern District of California, which includes San Diego and Imperial counties, and represents the federal government in civil litigation. The office is composed of approximately 140 Assistant U.S. Attorneys and 145 staff members.
Asylum Seekers Charged with Alien SmugglingRead the Press Release
Assistant U. S. Attorney Kareem Salem (619) 546-8904
NEWS RELEASE SUMMARY – February 26, 2019
SAN DIEGO – A couple from El Salvador awaiting the outcome of pending asylum cases was arrested yesterday at the U.S. Border Patrol State Route 94 Immigration Checkpoint and charged with alien smuggling.
According to a federal complaint, Edy Giovanni Fuentes-Alvarado and his wife, Kenia Yamileth Gomez-Caballero, approached the primary inspection area of the checkpoint in a white Nissan Armada at 12:06 p.m. Monday. They were referred to secondary inspection to verify their lawful presence in the U.S. after they told agents they are citizens of El Salvador who have an asylum case pending.
In secondary, Fuentes told agents that he and his wife came to the area to pick up his cousin, whom they acknowledged was an undocumented immigrant. Fuentes said they were waiting for a phone call from the cousin. An agent received permission from Fuentes to search his phone and discovered text messages appearing to coordinate transportation and a GPS location of the cousin.
Border Patrol agents used information from Fuentes’ phone to track the cousin and a second person near the intersection of Otay Lakes Road and State Route 94. Both told the agents they are citizens of El Salvador and illegally present in the U.S. They were taken into custody.
DEFENDANTS Case Number 19mj0808
Edy Giovanni Fuentes-Alvarado Age: 37 El Salvador
Kenia Yamileth Gomez-Caballero Age: 36 El Salvador
SUMMARY OF CHARGES
Transportation of Certain Aliens – Title 8, U.S.C., Section 1324(a)(1)(A)(ii)
Maximum penalty: Five years for each alien
AGENCY
U.S. Border Patrol
*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 Marcos Man Sentenced to 46 Months in Prison for Stealing the Identities of Charities as Part of a Tax-Fraud SchemeRead the Press Release
Assistant U.S. Attorneys Daniel Zipp (619) 546-8463 and Seth Askins (619) 546-6692
NEWS RELEASE SUMMARY – February 22, 2019
SAN DIEGO – Robert Holcomb, 53, was sentenced in federal court today to 46 months’ custody and ordered to pay a fine of $600,000, for misappropriating the identities of charities and using them to open bank accounts as part of a long-running tax fraud scheme.
Holcomb, who appeared before U.S. District Court Judge William Q. Hayes, was convicted by a federal jury on July 20, 2018 of four counts of making false statements to a financial institution.
According to the evidence presented at trial, Holcomb held himself out as an “asset protection” specialist who had the ability to use charitable trust accounts to reduce the tax liability of clients. Holcomb convinced his clients to forward him the profits from their businesses, which he then cycled through a series of bank accounts—with names that sounded like charities—and then returned the funds, minus a commission, with the assurance that they no longer constituted taxable income. Holcomb’s clients then filed tax returns that substantially underreported their true income, resulting in millions of dollars in lost income to the IRS. Over the course of a decade, Holcomb transferred more than $12 million in otherwise taxable income through his accounts, collecting “commissions” from his clients of more than $1 million dollars.
In 2011, after a number of Holcomb’s bank accounts were frozen, he was forced to open dozens of new accounts to keep the tax-evasion scheme operating. To do so, Holcomb began creating corporate entities whose names matched those of existing charities; misappropriating the taxpayer identification information from those charities; and then using their names and identification numbers to open new bank accounts. These charities included:
- Light of Life LLC, which operated a soup kitchen and rescue mission in Pittsburgh, PA;
- On Eagle’s Wings LLC, which provided missionary outreach in the Northwest Territories of Canada;
- Push the Rock, LLC, a Christian Sports Ministry, in Pennsylvania; and
- Sharing and Caring, LLC, a veteran’s organization that organized an annual boat trip for wounded veterans in Pittsburgh.
Representatives from each organization testified at trial that they did not know Holcomb, never gave him authorization to use their identities, and were unaware that he opened bank accounts in their name. When confronted about his affiliation with the charities, in a recorded call, Holcomb claimed that he had a “fiduciary relationship” and “run[s] everything.” When IRS agents then executed a search warrant on Holcomb’s residence, he admitted to using the charities’ numbers, but claimed that he could “use whatever number” he wanted, because he was “USA posterity.” Holcomb explained that he was “part of the upper caste” that was descended from the original founders of the “Massachusetts Bay Company.” As such, he explained, he was not required to pay taxes and was not subject to the Constitution.
“Holcomb used a series of sham trust arrangements to divert millions of taxpayer dollars into his own pocket,” said U.S. Attorney Robert Brewer. “His offense was particularly egregious because he used the identities of real charities in order to avoid detection and continue collecting commissions on funds that should have gone to the U.S. Treasury. No one is above the law, and merely claiming to be a sovereign citizen will not exempt you from criminal liability.”
“As today’s sentencing shows, individuals who create elaborate schemes that have no purpose other than to defraud the IRS and financial institutions will be prosecuted and suffer a loss of freedom,” said Acting Special Agent in Charge Bryant Jackson of IRS Criminal Investigation. “With filing season in full swing, it is a good time to remember that the IRS will actively pursue fraudsters who cleverly orchestrate these types of avoidance schemes.”
The case was prosecuted by Assistant U.S. Attorneys Daniel Zipp and Seth Askins.
DEFENDANT 16-CR-1408-WQH
Robert Holcomb Age: 53 San Marcos, CA
SUMMARY OF CHARGES
Making False Statements to a Financial Institution (18 U.S.C. 1014)
AGENCIES
Federal Bureau of Investigations
Internal Revenue Service
Bureau of Alcohol, Tobacco, Firearms and Explosives
Participants in $200 Million Workers’ Comp Scheme Sentenced to Prison and More Than $2 Million in Financial PenaltiesRead the Press Release
Assistant U.S. Attorneys Valerie Chu (619) 546-6750, Caroline Han (619) 546-6968 and Fred Sheppard (619) 546-8237
NEWS RELEASE SUMMARY – February 22, 2019
SAN DIEGO – This week in federal court a slew of conspirators involved in a massive Workers’ Compensation kickback scheme were ordered to serve prison sentences and pay millions in financial penalties for their roles in the corrupt payment of millions of dollars to induce doctors and other medical professionals to refer hundreds of injured workers for medical treatments and services.
According to court records, dozens of marketers, doctors, lawyers and medical service providers conspired to bilk the Workers’ Compensation system in California by buying and selling patients -- and their individual “body parts” -- like commodities. Among the defendants sentenced this week was an attorney, a chiropractor, two business owners and several marketers who referred patients for tests (such as MRIs, functional capacity exams and sleep studies), treatments (such as “shockwave,” x-rays, and ultrasound), pain medications, and durable medical equipment (DME) based on the corrupt payments. The conspirators often subjected patients to uncomfortable and sometimes painful procedures, so the conspirators could thereafter bill insurance companies for millions of dollars. As the government argued in its sentencing papers, the conspirators’ corruption of the doctor-patient relationship caused physicians to see price tags on every patient’s body parts. Each of the defendants played a critical role in the corrupt scheme.
The Corrupt Network
Defendant Fermin Iglesias and co-defendant Carlos Arguello operated a patient-capping enterprise, in which they found individuals who would file Workers’ Compensation claims against their employers. Iglesias and Arguello then sold, bartered and exchanged these applicants with others in the Workers’ Compensation industry, including attorneys, primary care physicians, and providers of medical goods and services. Each of these entities had to “pay to play,” and as the patient was referred throughout this corrupt system, money changed hands at each step. Arguello operated several patient-recruitment entities, including one called Centro Legal. Through billboards, flyers, advertisements and business cards, Centro Legal recruited persons to seek workers' compensation benefits from their employers or former employers. When the injured worker called the 1-800 number on the billboard or card, he or she reached a call center, which might be located in another country. From there, Iglesias’ company, Providence Scheduling, took over brokering the patient to maximize the profit that could be extracted from him or her.
Centro Legal referred the newly-acquired patient to complicit Workers' Compensation attorneys, including, in San Diego, attorney Sean O’Keefe, who had one of the largest Workers’ Comp caseloads in the region. To get these new clients, the attorneys in the corrupt network were expected to comply with certain conditions: first, they had to use Arguello’s copying service to fulfil document requests for all of the new client’s medical records; second, they had to agree to designate as their client’s primary treating physician (“PTP”) one of the complicit physicians within the corrupt network. In exchange, the attorneys received compensation. For O'Keefe, the compensation took a variety of forms. One hospital administrator paid the salaries of two employees of O’Keefe’s law firm, as a kickback to O’Keefe for referring spinal surgeries to that hospital. In another variation, the kickback payments were disguised as payments for nonexistent legal services, for which O’Keefe generated phony “legal invoices” to cover up those obviously illegal payments.
The corrupt physician could serve as the patients' primary care physician in the Workers' Comp system. This was a key gatekeeper role, because the PTP was entrusted with the authority to determine what additional goods and services the patient needed. Iglesias required that the chiropractors prescribe a certain minimum quota of goods and services, on average, for each patient. If the chiropractor failed to live up to the quota, Iglesias would cut off the flow of new patients.
Dr. Steven Rigler was one of the chiropractors involved in the corrupt referral network. He had clinics in Calexico, San Diego, and Escondido. To get patients for his San Diego and Escondido clinics, Rigler agreed to meet the referral “quota” set by Iglesias and Arguello. Court records reflect that Iglesias set a “value” for each type of service the physicians could refer, for example, $30 for each MRI, and $150 for Durable Medical Equipment (DME), to meet the quota of $600. To get credit, physicians had to refer their DME orders to Iglesias’ company, Meridian Medical Resources. Many of the MRIs were referred to Advanced Radiology, a diagnostic imaging company owned by Dr. Ronald Grusd. In Calexico, Ruben Martinez ran Rigler’s clinic and managed all of Rigler’s referrals for ancillary services. Alexander K. Martinez performed the same service for Rigler’s other clinics.
If the physicians failed to meet the quota, Iglesias cut off the pipeline of new patients. Iglesias employed Miguel Morales to ensure that physicians met the quota, and to demand lump-sum payoffs from them if they failed to do so. And to avoid such problems, and ensure a smooth referral process, Arguello hired referral managers who worked in chiropractor offices. For a time, Julian Garcia was paid by Arguello to manage Rigler's referrals. Garcia had Rigler's signature stamp, and if Rigler got behind, Garcia would simply increase the number of MRIs referred for each patient. Eventually, Garcia himself got licensed as a DME provider, and he himself paid chiropractors $50 apiece to prescribe “hot/cold packs” for pain relief, which were then billed to insurance companies for nearly $6,000.
Jennifer Louise White represented providers of other types of services, namely, Autonomic Nervous System (“ANS”) studies and sleep studies. She worked with Alex Martinez and with providers of the ANS and sleep studies to pay nearly $200,000 in kickbacks to Rigler to refer patients for these services.
Sentencing Hearings
In sentencing hearings held on February 20 and 21, 2019, U.S. District Judge Cynthia A. Bashant sentenced each defendant to custodial time. For his crimes, Iglesias was sentenced to 60 months in custody, and required to forfeit $1,005,000 in ill-gotten gains. Judge Bashant imposed five years’ probation on Igelsias’ corporations, MedEx and Meridian, and imposed a $500,000 joint and several fine. Miguel Morales was sentenced to 12 months and 1 day in custody, and was required to forfeit $140,000.
Alexander and Ruben Martinez were each sentenced to 33 months in custody and three years of supervised release. Their companies, Line of Sight and Desert Blue Moon, were sentenced to five years’ probation and fines of $45,000 and $20,000 respectively. Jennifer Louise White was sentenced to 24 months in custody, and ordered to pay fine of $25,000.
Onetime Workers’ Compensation applicant attorney Sean E. O’Keefe received a sentenced of 13 months in custody, and was required to forfeit $300,000 in ill-gotten gains. San Diego chiropractor Steven J. Rigler was sentenced to six months in custody, and was ordered to forfeit $150,000. The court substantially reduced both defendants’ sentences because they cooperated with authorities soon after being confronted by agents, and played critical roles in revealing the scope of the corrupt network.
Throughout the sentencing hearings, Judge Bashant expressed dismay that the defendants scammed a system “that’s set up to help people that really need the help.” She further expressed concern that these crimes would undermine public support for social safety-nets, such as the Workers’ Compensation system for injured workers. She expressed particular disappointment that licensed professionals like attorney O’Keefe and Dr. Rigler would engage in the fraud: “You are the most educated. You should know better,” she reproached them.
This week’s sentencing hearings, along with the conviction and sentence of Beverly Hills Radiologist Dr. Ronald Grusd, bring to a successful close the first wave of cases brought by the U.S. Attorney’s Office and its law enforcement partners to combat fraud in the California Workers’ Compensation System.
“It is unfortunate that some individuals see only an opportunity to profit in a system designed to aid injured workers,” said U.S. Attorney Robert S. Brewer, Jr. “What’s more, this crime corrupted the doctor-patient relationship. A doctor’s medical decisions should be based on the best interest of the patient, not the highest bidder.”
“Health care fraud betrays vulnerable patients and steals funds meant to care for injured workers,” said FBI Special Agent in Charge John Brown. “The cases in 'Operation Back Lash' have shown that these medical professionals, doctors, and attorneys who took bribes chose profit over their patients. This massive investigation, with over 30 convictions to date, demonstrates the FBI's commitment to finding those who commit fraud and bringing them to justice.”
Anyone with information about healthcare fraud may call the FBI at 1-800-CALL-FBI, or 1-800-225-5324 or the California Department of Insurance’s toll-free fraud hotline, 800-927-4357.
DEFENDANTS
United States v. Grusd, et al., 15cr2821-BAS Sentence
Ronald Grusd, Los Angeles, CA 10 years, $1.3 million forfeiture, $250,000 fine
California Imaging Network Medical Group 5 years’ Probation, $500,000 fine
Willows Consulting Company 5 years’ Probation, $500,000 fine
Alex Martinez, El Centro, CA 37 months’ custody
Ruben Martinez, Murietta, CA 33 months’ custody
Line of Sight, Inc. 5 years’ Probation, $45,000 fine
Desert Blue Moon, Inc. 5 years’ Probation, $20,000 fine
United States v. Iglesias et al, 16CR0131-BAS
Fermin Iglesias 60 months’ custody, $1,005,000 forfeiture
MedEx Solutions 5 years’ Probation, $500,000 fine
Meridian Medical Resources 5 years’ Probation, $500,000 fine
Miguel Morales 12 months 1 day custody, $140,000 forfeiture
United States v. Garcia, 15CR2820-BAS
Julian K. Garcia, National City, CA 33 months’ custody, $10,000 fine
United States v. White, 16CR2905-BAS
Jennifer Louise White, Glendale, CA 24 months, $25,000 fine
United States v. O’Keefe, 14CR2343-BAS
Sean Enrique O’Keefe 13 months, $300,000 forfeiture
United States v. Rigler, 15CR2773-BAS
Steven J. Rigler 6 months, $150,000 forfeiture
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego County District Attorney’s Office
California Department of Insurance
Leader of Multi-Million Dollar Immigration Fraud Scheme Pleads GuiltyRead the Press Release
Assistant U. S. Attorneys Andrew Young (619) 546-7981 and Meghan Heesch (619) 546-9442
NEWS RELEASE SUMMARY – February 21, 2019
SAN DIEGO – Hardev Panesar pleaded guilty in federal court today, admitting that he orchestrated a long-running immigration-fraud scheme that tricked more than 100 victims out of millions of dollars based on false claims that they could secure immigration status in the United States.
Panesar pleaded guilty before U.S. District Judge Gonzalo P. Curiel to all counts, including one count of conspiracy to commit wire fraud, three counts of wire fraud, four counts of false impersonation of a federal officer, and one count of structuring financial transactions. Panesar also pleaded guilty to a separate count of failing to appear in court, resulting from his decision “jump bail” and flee to Mexico in June 2018, where he remained a fugitive for two months.
According to his plea agreement, Panesar admitted that from at least 2012 through May 24, 2017, he defrauded immigrants and aliens by inducing them to pay money to him based on fraudulent claims that he and his co-conspirators could obtain legal status in the United States for the victims and their families. Panesar managed to defraud the victims by, in part, impersonating an official from the Department of Homeland Security (DHS) and claiming that he had the power to stop deportation proceedings. To trick his victims, Panesar repeatedly showed fake agency credentials, provided immigration applications, and took fingerprints of victims. He often demanded more money to speed up the process or guarantee the immigration documents by a certain date. Panesar and his co-conspirators never delivered on their promise to provide immigration documents, despite collecting hundreds of thousands of dollars from victims. As part of the plea agreement, Panesar agreed to pay approximately $2.5 million in restitution to his many victims.
Panesar also admitted that on June 21, 2018, he fled to Tijuana, Mexico, the day before a hearing scheduled in this case. Panesar remained a fugitive, hiding in Mexico, until August 13, 2018, when he was arrested by Mexican authorities and expelled back to the United States. Panesar has been in custody ever since, pending trial.
Panesar is scheduled to be sentenced on May 10, 2019, at 8:30 a.m. before Judge Curiel. Rafael Hastie, one of Panesar co-conspirators, was sentenced to 46 months in custody on January 4, 2019.
The investigation into this case continues. The San Diego Division of the Federal Bureau of Investigation is seeking possible victims in this investigation from 2000 through 2017. If you believe you are a potential victim of this crime, please fill out the questionnaire at https://forms.fbi.gov/SDImmigrationFraud or email the FBI at [email protected].
DEFENDANT
Hardev PANESAR Age: 70
SUMMARY OF CHARGES (17CR1371-GPC)
Count 1: 18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud; Maximum Penalty 20 years in prison, $250,000 fine, forfeiture, restitution
Counts 2-4: 18 U.S.C. § 1343, Wire Fraud; Maximum Penalty 20 years in prison, $250,000 fine, forfeiture, restitution
Counts 5-8: 18 U.S.C. § 912, False Personation of an Officer or Employee of the United States; Maximum Penalty 3 years in prison, $250,000 fine, forfeiture, restitution
Count 11: 31 U.S.C. § 5324(a)(3), Structuring at Domestic Financial Institutions; Maximum Penalty 10 years in prison, $250,000 fine, forfeiture
SUMMARY OF CHARGES (18CR3229-GPC)
Count 1: 18 U.S.C. § 3146(a)(1), Failure to Appear
AGENCY
Federal Bureau of Investigation
Convicted Felon Sentenced to 151 Months for Possessing 11 Firearms and Dealing Crack Cocaine, Cocaine and HeroinRead the Press Release
NEWS RELEASE SUMMARY – February 15, 2019
SAN DIEGO – Convicted felon Dwight Wayne Jordan, aged 60, a San Diego resident, was sentenced today to 151 months for knowingly and intentionally possessing, with intent to distribute, cocaine base (i.e., crack cocaine), cocaine and heroin along with illegally possessing eleven firearms that included semi-automatic weapons, shotguns, and .357 Magnum revolvers among others.
U.S. District Judge Gonzalo P. Curiel also ordered forfeiture of each of the eleven firearms and ammunition seized; $43,440 in United States currency; and a 2013 Porsche Cayenne in which a portion of Jordan’s narcotics proceeds were located. During sentencing, Judge Curiel explained that Jordan’s narcotics distribution efforts were “deadly, crippling and so destructive . . ..” and that Jordan was responsible for putting “so much poison out to a community that is already underserved.”
Through his plea agreement, Jordan admitted that, on September 8, 2018, he was the driver and sole occupant of a BMW X3 traveling on the I-94 near Market Street in San Diego when a San Diego Police Department (SDPD) Officer attempted to conduct a lawful traffic stop. Although Jordan initially yielded, as the officer exited his vehicle, Jordan accelerated and attempted to flee, running two red lights. While fleeing, Jordan threw a bag from the car window containing approximately two kilograms of cocaine that was recovered by SDPD. After the vehicle was stopped, a search yielded more than $6,900 that Jordan later admitted were the proceeds of narcotics trafficking. The attached photo (Attachment 1), filed with the Government’s sentencing papers, depicts items seized from the vehicle.
On September 18, 2018, law enforcement also executed follow-up search warrants at Jordan’s residence and alleged business -- the “Cuttin up” barbershop -- in San Diego. Those searches yielded eleven firearms; $36,499 in cash, including the cash found in the Porsche Cayenne, all of which resulted from narcotics trafficking; and significant quantities of cocaine base, cocaine and heroin. Jordan admitted that he illegally possessed the eleven firearms as well as the drugs, which he intended to further distribute. Due to a prior drug felony conviction, Jordan was prohibited from possessing a firearm or ammunition under federal law. The attached photo (Attachment 2), also filed with the Government’s sentencing papers, depicts items seized from Jordan’s residence.
“Drugs and guns present a potentially lethal combination that will not be tolerated in America’s Finest City” said U.S. Attorney Robert S. Brewer, Jr. “The U.S. Attorney’s Office is steadfastly committed to protecting our community from the dealers of pernicious drugs that destroy families, wreak havoc on our streets, and provoke fear in our neighborhoods.”
The case was prosecuted by Assistant U.S. Attorney Larry Casper.
The case is the result of the ongoing efforts of the Organized Crime Drug Enforcement Task Force (OCEDTF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCEDTF 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 Number 18-cr-4496
Dwight Wayne Jordan Age: 60 San Diego, California
SUMMARY OF CHARGES
Count 1:
Possession With the Intent to Distribute Cocaine Base, Cocaine and Heroin, 21 U.S.C. 841(a)
Maximum penalties: Life in prison, and a mandatory minimum 10 years; $10,000,000 fine; at least five years’ supervised release up to life; Mandatory Special Assessment of $100; Forfeiture
Count 2:
Felon in Possession of a firearm, 18 U.S.C. 922(g)(1)
Maximum penalties: 10 years custody $250,000 fine and 3 years supervised release; Mandatory Special Assessment of $100; Forfeiture
INVESTIGATING AGENCIES
Drug Enforcement Administration
Bureau of Alcohol Tobacco Firearms and Explosives
San Diego Police Department
Tijuana Trucker Pleads Guilty to Conspiring to Import Six Tons of Marijuana to the United StatesRead the Press Release
NEWS RELEASE SUMMARY – February 14, 2019
SAN DIEGO – Jesus Armando Tiznado-Duran, a Mexican citizen, pleaded guilty today in federal court before U.S. Magistrate Judge Andrew G. Schopler to Count 1 of an Information charging him with knowingly and intentionally conspiring with other persons to import approximately 5705.60 kilograms (12,552.32 pounds) of marijuana.
Through his plea agreement, Tiznado-Duran, a Tijuana, Mexico resident and professional truck driver, admitted that on November 6, 2018 he was dispatched by his employer with an empty trailer to a plastics company in Tijuana to pick up a shipment slated for delivery in the United States. Tiznado-Duran deviated from the route he was supposed to take and stopped at a predetermined location in Mexico, where his trailer was loaded with more than 6 tons of marijuana and approximately 15.54 kilograms (34.19) of heroin. Tiznado-Duran then delivered the trailer to another truck driver who was scheduled to drive the shipment of plastics from Tijuana, Mexico into the United States. When that truck driver drove the trailer into the United States at the Otay Mesa, California Port of Entry and presented an invoice listing the contents of the trailer as “plastic fittings,” Customs and Border Protection officials inspected the trailer and discovered it contained marijuana and heroin.
The federal narcotics charge to which Tiznado-Duran has pleaded guilty carries a mandatory minimum ten year sentence and a maximum life. Tiznado-Duran is scheduled to be sentenced on May 6, 2019 before U.S. District Judge Barry Ted Moskowitz in San Diego.
DEFENDANT Case Number 18cr5231-BTM
Jesus Armando Tiznado-Duran Age: 28 Tijuana, MX
SUMMARY OF CHARGES
Conspiracy to Import a Controlled Substance – Title 21, U.S.C., Sections 952, 960, and 963
Maximum penalty: life imprisonment, and a mandatory minimum 10 years; $10,000,000 fine, and at least five years’ supervised release up to life.
AGENCY
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.