Southern District of California
Press releases recorded for this federal judicial district.
San Diego Physical Therapy Clinics’ Owners Pay $450,000 to Resolve Fraud AllegationsRead the Press Release
Assistant U.S. Attorney Dylan M. Aste (619) 546-7621
NEWS RELEASE SUMMARY – February 13, 2019
Two San Diego physical therapy clinics and their owners have paid $450,000 to resolve allegations that they fraudulently billed military healthcare provider TRICARE for medical services that were supposedly performed by qualified medical doctors, but were actually provided by unqualified and unauthorized employees.
South Bay Physical Medicine, Inc. and Direct Health Medical Center, Inc. d/b/a San Diego Spine and Rehabilitation were physical therapy clinics. Brett Allan, Sr., Brett Allan, Jr. and Jeff Allan owned the clinics.
TRICARE is the health care program for uniformed service members, retirees, and their families. TRICARE specifically limits billing privileges to enrolled providers for a variety of reasons, including the safety of patients. Some incidental services rendered by non-authorized providers can be billed as “incident to” the services of an enrolled physician, but only under rare circumstances and when the physician provides direct supervision. The United States alleged that the Allans violated the False Claims Act by billing TRICARE for physical therapy services provided solely by unqualified and unauthorized personnel and without the necessary physician supervision.
“The United States Attorney’s Office works hard to safeguard the integrity of the TRICARE program and the safety of our soldiers and their family members,” said U.S. Attorney Robert Brewer. “Health care fraud hurts the entire health care system, from taxpayers down to honest providers and innocent patients. We are committed to using all available remedies, both civil and criminal, to combat health care fraud.”
“The announced resolution is a significant victory because the integrity of the U.S. military's health care program is of utmost importance to our military personnel and their families,” said Bryan D. Denny, Special Agent in Charge of the Defense Criminal Investigative Service, Western Field Office. “DCIS remains committed to working with its law enforcement partners and the U.S. Attorney's Office to combat health care fraud and, more specifically, bring to justice those who seek to defraud the military health care system.”
“When health care providers participate in fraudulent billing schemes in order to increase profits, they steal from the pockets of the taxpayer and jeopardize federal healthcare programs,” said John Brown, FBI Special Agent in Charge. “San Diego is a military town and military personnel represent a large part of our community. It goes without saying that the FBI is committed to working with our partners to aggressively investigate health care providers that defraud the DoD, in order to preserve American taxpayer dollars intended to care for our Warfighters, their family members, and military retirees.”
The Government’s resolution of this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, and abuse can be reported at https://www.tricare.mil/ContactUs/ReportFraudAbuse.
This matter was handled by Assistant U.S. Attorney Dylan M. Aste of the U.S. Attorney’s Office for the Southern District of California, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the Defense Health Agency Program Integrity Office.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
San Diego Genetic Testing Company Agrees to Pay $1.99 Million to Resolve Allegations of False Claims to Medicare for Medically Unnecessary TestsRead the Press Release
Assistant U. S. Attorney Joseph Price (619) 546-7642
NEWS RELEASE SUMMARY – February 11, 2019
SAN DIEGO – GenomeDx Biosciences Corp. (“GenomeDx”) has agreed to pay $1.99 million to resolve allegations that it violated the False Claims Act, 31 U.S.C. §§ 3729 et seq., by submitting false claims to Medicare for its “Decipher®” post-operative genetic test for prostate cancer patients. GenomeDx is a genomic testing company with operations based in San Diego and headquarters in Vancouver, British Columbia.
The United States alleged that GenomeDx submitted claims to Medicare between September 2015 and June 2017 for the Decipher test that were not medically reasonable and necessary because the prostate cancer patients did not have risk factors necessitating the test, namely pathological stage T2 disease with a positive surgical margin, pathological stage T3 disease, or rising Prostate-Specific Antigen (“PSA”) levels after an initial PSA nadir.
“The Department of Justice is committed to ensuring that Medicare patients only receive laboratory testing that is reasonable and necessary for the individual patient,” said Assistant Attorney General Joseph A. Hunt. “Medically unnecessary and unproven testing increases costs for federal health care programs and is not in the interest of patients.”
“As this settlement demonstrates, we are committed to protecting the integrity of the Medicare program and will hold health care providers accountable under the False Claims Act when they engage in improper billing,” said Robert S. Brewer, Jr., United States Attorney for the Southern District of California. “This settlement is also another example of our commitment to vigorously investigate cases brought to our attention by whistleblowers. We commend the two employees of GenomeDx who had the courage to come forward and work with investigators.”
“Lab tests and other medical services should only be conducted or provided when medically necessary,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Whistleblowers play a critical role in keeping entities honest and accountable, and are encouraged to report suspected waste, fraud and abuse by those billing federal healthcare programs.”
“The message is clear, if you take advantage of programs like Medicare, you will be held accountable,” said John Brown, FBI Special Agent-in-Charge. “Companies who engage in filing false claims to generate more corporate revenue are not only stealing from the federal taxpayer, but also from people who rely on federally funded programs for their health care needs.”
The False Claims Act allegations being resolved were originally brought in a lawsuit filed by two former employees of Genome DX, Stephanie LaFleur and Corrine Vause, under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of fraud against the government to bring suit on behalf of the government and to share in any recovery. The whistleblowers will receive approximately $350,000 of the settlement proceeds of $1,990,380.
The investigation was conducted by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Southern District of California, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation.
The case is captioned United States ex rel. La Fleur et al. v. GenomeDX Biosciences Corp., No. 17-CV-1959 (S.D. Cal.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
DEFENDANT
Civil Case No. 17CV1959
GenomeDX Biosciences Corp. San Diego, California
Genetic Testing Company Agrees to Pay $1.99 Million to Resolve Allegations of False Claims to Medicare for Medically Unnecessary TestsRead the Press Release
The Justice Department announced today that GenomeDx Biosciences Corp. (GenomeDx) has agreed to pay $1.99 million to resolve allegations that it violated the False Claims Act, 31 U.S.C. §§ 3729 et seq., by submitting claims to Medicare for the Decipher® post-operative genetic test for prostate cancer patients. GenomeDx is a genetic testing laboratory headquartered in Vancouver, British Columbia, with operations based in San Diego.
“The Department of Justice is committed to ensuring that Medicare reimburses costs for laboratory testing that are reasonable and necessary for the individual patient,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “Medically unnecessary and unproven testing increases costs for federal health care programs.”
The United States alleged that GenomeDx knowingly submitted claims for the Decipher test to Medicare between September 2015 and June 2017 that were not medically reasonable and necessary because the prostate cancer patients did not have risk factors necessitating the test, including pathological stage T2 disease with a positive surgical margin, pathological stage T3 disease or rising Prostate-Specific Antigen (PSA”) levels after an initial PSA nadir.
“As this settlement demonstrates, we are committed to protecting the integrity of the Medicare program and will hold health care providers accountable under the False Claims Act when they engage in improper billing,” said Robert S. Brewer, Jr., United States Attorney for the Southern District of California. “This settlement is also another example of our commitment to vigorously investigate cases brought to our attention by whistleblowers. We commend the two employees of GenomeDx who had the courage to come forward and work with investigators.”
“Lab tests and other medical services should only be conducted or provided when medically necessary,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Whistleblowers play a critical role in keeping entities honest and accountable, and are encouraged to report suspected waste, fraud and abuse by those billing federal healthcare programs.”
“The message is clear, if you take advantage of programs like Medicare, you will be held accountable,” said John Brown, FBI Special Agent in Charge of the San Diego Field Office. “Companies who engage in filing false claims to generate more corporate revenue are not only stealing from the federal taxpayer, but also from people who rely on federally funded programs for their health care needs.”
The settlement resolves allegations originally brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers will receive $348,316.50 from the False Claims Act recovery.
The investigation was conducted by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Southern District of California, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation.
The case is captioned United States ex rel. La Fleur et al. v. GenomeDX Biosciences Corp., No. 17-CV-1959 (S.D. Cal.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Former San Diego Unified School Teacher Sentenced for Receipt of Child PornographyRead the Press Release
Assistant U.S. Attorney Janet Cabral (619) 546-8715
NEWS RELEASE SUMMARY – February 11, 2019
SAN DIEGO – Former San Diego Unified School District teacher David Gordon Weaks was sentenced today to 70 months in prison following his guilty plea to one count of receipt of images of minors engaged in sexually explicit conduct.
Weaks was a fifth-grade teacher at Rosa Parks Elementary School up until the time of his arrest. He has been in custody since federal agents executed a search warrant at his home and arrested him on April 19, 2018. Weaks’ term of custody will be followed by an eight-year term of supervised release, including restrictions on his use of the internet.
Weaks, 60, came to the attention of agents from Homeland Security Investigations in early April 2018, when agents found that a computer associated with Weaks’ residence was making files of child pornography available for downloading by others through a publicly available peer to peer file sharing network. Analysis of the devices seized from Weaks’ residence at the time of the April 19, 2018, search warrant, revealed that child pornography files were found on a desktop computer, two laptop computers and a backup hard drive.
DEFENDANT Criminal Case No. 18cr2469-LAB
David Gordon Weaks Age: 60 San Diego, CA
SUMMARY OF CHARGE
Title 18, United States Code, Section 2252(a)(2) – Receipt of Images of Minors Engaged in Sexually Explicit Conduct
Maximum penalties: 20 years in prison (with a mandatory minimum of 5 years in prison); $250,000 fine; Mandatory Special Assessment of $100; Special Assessment of $5,000 under Justice for Victims of Trafficking Act of 2015; Restitution; Forfeiture
INVESTIGATING AGENCIES
Homeland Security Investigations
Man Sentenced for Speeding Away with Border Patrol Agent Hanging out of Driver’s WindowRead the Press Release
Assistant U.S. Attorneys Ryan Sausedo (619) 546-9689 and Katherine McGrath (619) 546-9054
SAN DIEGO – John Leland Combs was sentenced to 30 months in prison today for assaulting a U.S. Border Patrol agent by speeding away in a stolen car while the agent was leaning inside the driver’s window, and then leading Border Patrol agents on a high-speed chase on State Route 94, endangering everyone on the road that morning.
Combs was convicted by a federal jury on November 6, 2018 of assault on a federal officer and high speed flight from a checkpoint.
According to evidence presented at trial, the assault occurred during the early morning hours of September 2, 2017. Agent Norberto M. Ribac was assigned to the Brown Field Border Patrol Station All-Terrain Vehicle (ATV) Unit patrolling in the area of Tecate, California. At approximately 5:40 a.m., Agent Ribac discovered northbound shoeprints in the sand approximately 300 yards west of the Tecate Port of Entry. Agent Ribac followed the footprints to Industrial Road, where he discovered Combs standing next to his car, a stolen Hyundai Genesis, and talking on his cell phone, mere yards north of the border fence in Tecate.
Agent Ribac approached Combs and asked him if there was anything or anyone in the car. Combs said he was alone and voluntarily opened the trunk of the car for Agent Ribac to inspect. As Agent Ribac requested registration and records checks for the car, Combs got inside the car in an apparent attempt to leave the area. When Agent Ribac reached into the car through the driver’s side window to turn the engine off, Combs sped off. While Agent Ribac was attempting to free himself from the moving car, the car struck him on his right elbow and on the right side of his head, breaking his ATV helmet.
In an attempt to flee the State Route 94 Checkpoint, Combs hit speeds over 70 mph while swerving in and out of traffic on a winding two-lane highway. As Combs veered over the cone lane and into the eastbound lane of the checkpoint, video footage showed the agents successfully deploying spike strips. Combs eventually lost control of the car and swerved into a residential driveway. He attempted to flee on foot, but was quickly arrested.
“Agent Ribac put his life on the line to keep our community safe,” said U.S. Attorney Robert Brewer. “I’m very glad it’s the defendant, and not the brave agent, who is paying the price for this audacious crime. We will use our legal arsenal to vigorously prosecute those who assault dedicated U.S. Border Patrol agents and endanger the public with dangerous escape attempts.”
“We are grateful to the U.S. Attorney’s Office for their tenacity and professionalism in presenting a strong case in support of our agent,” said San Diego Sector Chief Patrol Agent Rodney Scott. “The community in which we serve has spoken in favor of law and order, and every agent in this Sector appreciates the support as we work to provide a secure border.”
The case was prosecuted by Assistant United States Attorneys Ryan Sausedo and Katherine McGrath.
DEFENDANT Case No. 17cr3026-CAB
John Leland Combs
SUMMARY OF CHARGES
Assault on a Federal Officer, in violation of 18 U.S.C. § 111
Maximum Penalty: 12 months’ prison, $100,000 fine; 1 year supervised release
High Speed Flight from a Checkpoint, in violation of 18 U.S.C. § 758
Maximum Penalty: 5 years’ prison, $250,000 fine; 3 years’ supervised release
AGENCIES
Department of Homeland Security, Border Patrol Intelligence
U.S. Border Patrol
Former U.S. Navy Captain Sentenced in Sweeping U.S. Navy Corruption and Fraud ProbeRead the Press Release
Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714, Robert Huie (619) 546-7053 and Patrick Hovakimian (619) 546-9718
NEWS RELEASE SUMMARY – February 8, 2019
SAN DIEGO – Former U.S. Navy Captain Jeffrey Breslau, previously the director of public affairs for the U.S. Pacific Fleet, was sentenced in federal court today to six months in custody for secretly moonlighting as a paid public relations consultant for foreign defense contractor Leonard Glenn Francis.
U.S. District Judge Janis L. Sammartino also fined Breslau $20,000, ordered him to perform 250 hours of community service, and ordered Breslau to pay $65,000 in restitution to the Navy – the amount Francis paid the Navy Captain for insider advice that helped the contractor build a business empire that cost the Navy tens of millions of dollars.
According to the government’s sentencing memorandum, Breslau authored emails and provided talking points for Francis to create relationships with five Navy admirals and win or maintain lucrative Navy contracts for his Singapore-based ship husbanding company, Glenn Defense Marine Asia (GDMA).
Breslau, 52, of Cumming, Georgia, was charged in September 2018 and pleaded guilty in November to one count of criminal conflict of interest, admitting that while he was still employed by the U.S. Navy, Francis paid him more than $65,000 for the public relations consulting services. Francis pleaded guilty in 2015 to bribery and fraud charges, admitting that he presided over a massive, decade-long conspiracy involving scores of U.S. Navy officials, tens of millions of dollars in fraud and millions of dollars in bribes and lavish gifts, including luxury travel, airline upgrades, five-star hotel accommodations, top-shelf alcohol, the services of prostitutes, Cuban cigars, Kobe beef, and Spanish suckling pigs.
Breslau pleaded guilty to a conflict of interest charge. The essence of his crime, prosecutors said, was the prolific use of his specialized skills and privileged position, bestowed upon him by the U.S. Navy, for GDMA’s benefit. “Simply put,” the sentencing memo said, “the defendant sold his fiduciary alliance for $65,000.”
“Breslau was secretly advocating for Leonard Francis behind the backs of his Navy colleagues,” said U.S. Attorney Robert S. Brewer Jr. “Breslau’s deceit was part of an astounding culture of corruption that has been exposed and eliminated as a result of this historic investigation.”
According to admissions made as part of his guilty plea, from October 2009 until July 2012, Breslau was a Captain in the U.S. Navy assigned as Director of Public Affairs for the U.S. Pacific Fleet, headquartered in Pearl Harbor, Hawaii. As part of his duties, Breslau was involved in devising the U.S. Navy’s public affairs communications strategy, and provided public affairs guidance to Pacific Fleet components and other U.S. Navy commands. From August 2012 until July 2014, Breslau was assigned to the Commanding Officer for the Joint Public Affairs Support Element in Norfolk, Virginia, where he was responsible for leading joint crisis communications teams.
Breslau admitted in his plea agreement that from March 2012 until September 2013, while serving in the above roles for the U.S. Navy, he provided Leonard Francis with public relations consulting services, including providing advice on how to respond to issues and controversies related to Francis’s ship husbanding business with the U.S. Navy. These included issues related to port visit costs, allegations of malfeasance such as the unauthorized dumping of waste, disputes with competitors, and issues with Pacific Fleet and contracting personnel.
During the course of his consulting agreement with Francis, Breslau authored, reviewed, or edited at least 33 separate documents; authored at least 135 emails providing advice to Francis; provided at least 14 instances of “talking points” in advance of meetings between Francis and high ranking U.S. Navy personnel; and “ghostwrote” numerous emails on Francis’s behalf to be transmitted to U.S. Navy personnel. During the course of this consulting agreement, Breslau accepted approximately $65,000 from Francis without disclosing the agreement to the U.S. Navy.
In one email exchange with Francis, Breslau described himself as Francis’ “priest” because of the confidential nature of the relationship. In another email, Breslau urged Francis to be discreet in his communications with other Navy officers: “Hope I was blind copied on the note below. Important to not compromise me even to your closest Navy brothers.” Francis replied, “Rest assured your identity is protected.”
In another email, Francis praised Breslau; “I like your ghost writing it truly helps me.” Breslau replied, “Thanks for the compliment with regard to the ghost emails. Glad to help.”
Prosecutors argued that Breslau should serve time in custody for the conflict of interest charge, in part because his deception had a significant impact on the Navy. “The breadth and scope of defendant’s willful illegal conduct in providing consulting services to Francis – in each instance assisting Francis against the U.S. Navy – substantially disrupted the functions of the U.S. Navy,” prosecutors wrote in the sentencing memo.
“In nearly every instance, defendant’s work consisted of advocating for Francis and against the U.S. Navy, against its officers, against its senior civilian leaders, and against its enlisted sailors,” the sentencing memo said.
Breslau is the 18th current or former U.S. Navy official to plead guilty in the expansive corruption and fraud investigation involving Francis and GDMA. So far, 33 defendants have been charged in the U.S. and 22 have pleaded guilty.
The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher, Robert Huie, and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Fraud Section of the Justice Department’s Criminal Division.
DEFENDANT Case Number: 18-CR4208
Captain (retired) Jeffrey Breslau Age: 52 Cumming, Georgia
SUMMARY OF CHARGES
Conflict of Interest, in violation of 18 U.S.C. § § 208(a), 216
Maximum Penalty: 5 years in prison, a $250,000 fine
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Member of Westside Crips Criminal Street Gang Pleads Guilty to Racketeering Conspiracy Involving Drug Trafficking, Sex Trafficking and Other Violent CrimesRead the Press Release
Assistant U.S. Attorneys Alessandra P. Serano (202) 252-5843 or Joseph Orabona (619) 546-7951
NEWS RELEASE SUMMARY – February 4, 2019
SAN DIEGO – Westside Crips gang member William McKinley Bright today became the last of 12 defendants to plead guilty, admitting that he participated in a racketeering conspiracy involving narcotics trafficking, sex trafficking and other violent crimes.
Bright, aka “Slim,” admitted to his membership and association with the Westside Crips, which primarily operated in Oceanside. Sentencing for Bright is scheduled for May 3, 2019.
In furtherance of the RICO conspiracy, Bright admitted he engaged in multiple narcotics transactions at a local hotel in Oceanside as well as other places in San Diego and Vista, in order to promote the Westside Crips. Bright admittedly sold gram-quantities of methamphetamine between October 2014 and May 2015. Bright also acknowledged that he was an active and productive member of the Westside Crips who promoted the gang through use of social media as well as wearing gang colors and displaying gang signs. Bright admitted that the conspiracy in which he was involved resulted in the distribution of at least 150 grams but less than 500 grams of methamphetamine in San Diego County.
In 2017 and 2018, Bright’s coconspirators pleaded guilty to RICO conspiracy. They include: Corey Deshawn Austin (aka “Westwood”), Ameer Fareed Roby (aka “Tiny Dum Dum”), Michael Anthony Sullivan (aka “Du-Low”), Peter Andrew Miranda (aka “Fat Boy,” “Baby Rocks,” and “Lil’ Burger”), Shane Robert Anderson (aka “Tiny Westwood”), Jasiri Malcolm Lacey (aka “Baby Westwood”), Demetrius Montre McFarland (aka Mechii Ruu”), Travion McHenry (aka “Too Much”), Richard Cleveland (aka “Face”), Larry Darnell Monroe, and Umesh Oza (aka “Kevin”) pleaded guilty to RICO conspiracy. All but Corey Deshawn Austin were sentenced to terms of imprisonment ranging from 4 months to 180 months. Austin is scheduled to be sentenced on March 1, 2019.
“Because of the diligence of investigators and prosecutors, a dozen violent gang members are in prison and no longer a threat to our communities,” said U.S. Attorney Robert S. Brewer Jr., who praised the efforts of multiple agencies who worked together for maximum impact. “We will use all of our legal resources to release our neighborhoods from the grips of gangs that peddle drugs and violence.”
“Drugs corrupt. Corruption leads to addiction, greed and violence. Utilizing one of the USA’s most powerful tools against violent criminal organizations like the Westside Crips, a RICO conspiracy, united law enforcement agencies banish and destroy whole organizations,” said DEA Special Agent in Charge Karen Flowers. “It isn’t easy, it isn’t quick and it takes an incredible amount of work. But, it is the strongest message that can be sent to organized crime. It might not be today or tomorrow, but we are relentless. We will come for you and when you are gone, our streets will be safer and our communities stronger.”
“The guilty plea announced today provides a window into a criminal enterprise that appeared willing to do anything and everything illegal to make a profit,” stated IRS Acting Special Agent in Charge Bryant Jackson. “The role of IRS Criminal Investigation in narcotics and human trafficking investigations is to follow the money so we can financially disrupt and dismantle these major drug trafficking organizations and protect our communities from the violent behavior of these malicious street gangs.”
“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.
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
William McKinley Bright, aka “Slim” Age: 53 Oceanside, CA
SUMMARY OF CHARGES
Title 18, United States Code, Section 1962(d) - Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity; Title 18, United States Code, Section 1963 - Criminal Forfeiture Maximum Penalties: 20 years’ incarceration, 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
Oceanside Man Sentenced to Prison for Stealing Benefits Intended for Widow of Military VeteranRead the Press Release
Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924 and Assistant U.S. Attorney Matthew C. Brehm (619) 546-8983
NEWS RELEASE SUMMARY – January 28, 2019
SAN DIEGO – Michael Vanden Brink of Oceanside was sentenced by U.S. District Judge John A. Houston today to eight months in federal prison for stealing over $145,000 in benefits intended for the widow of a military veteran.
At the time of his guilty plea on September 5, 2018, Brink admitted that after the widow’s death in 2004, he converted her Department of Veterans Affairs benefits to his own use. Brink further acknowledged that he knew that he was not entitled to the victim’s benefits, and that he knew the money deposited into the widow’s bank account (over which he had control) rightfully belonged to the United States. But rather than notifying the bank that the widow had died, he used the funds to pay for his own personal expenses, ultimately converting a total of $145,035 in Veterans Affairs money to his own use.
U.S. Attorney Robert S. Brewer commended prosecutors and the Criminal Investigators Division of the Department of Veterans Affairs Office of Inspector General, for their hard work on the case.
“The United States Attorney’s Office is committed to protecting the integrity of the Department of Veterans Affairs and the benefits it provides,” Brewer said. “The prison sentence imposed in this case is an appropriate punishment for someone who, for more than a decade, stole taxpayer money intended for our nation’s veterans and their families.”
In addition to his prison sentence, Judge Houston ordered Brink to serve three years on supervised release and to pay $145,035 in restitution to the Department of Veterans Affairs.
DEFENDANT Case Number 18-cr-3894-JAH
Michael Vanden Brink Oceanside, CA Age: 57
SUMMARY OF CHARGES
Theft of Public Property – Title 18, U.S.C., Section 641
Maximum penalty: 10 years’ imprisonment
AGENCIES
U.S. Department of Veterans Affairs, Office of Inspector General – Criminal Investigations Division
Two Men Charged in Fentanyl Overdose DeathRead the Press Release
Assistant U.S. Attorneys Mikaela Weber (619) 546-9734 or Stephen Wong (619) 546-9464
NEWS RELEASE SUMMARY – January 16, 2019
SAN DIEGO – Earlier this week, federal prosecutors charged two men with Distribution of Fentanyl Resulting in Death. The charges arise out of a 41 year-old woman’s fatal overdose from fentanyl-laced heroin on October 24, 2018.
As detailed in the criminal complaint, on October 24, 2018, officers responded to a 911 call regarding the suspected overdose of a San Diego woman identified in court documents as J.C.G. When officers and paramedics arrived, they attempted CPR without success and pronounced the woman dead. The complaint alleges that the San Diego County Medical Examiner conducted an examination and confirmed that the woman’s cause of death was a fentanyl and heroin overdose.
The case was immediately assigned to a multi-agency task force, led by the Drug Enforcement Administration, which investigates drug overdose deaths in San Diego County. According to the criminal complaint, within 24 hours of the woman’s death, task force agents and officers traced the fentanyl-laced heroin back to defendant Travis Ray Ballou, who was arrested on October 25, 2018. The complaint alleges that Ballou sold heroin to J.C.G. on three occasions—October 22, 23, and 24. On October 23, J.C.G. overdosed and went to the hospital, where she was revived with Narcan, an opioid blocker used for the rapid reversal of opioid overdose. The following day, on October 24, J.C.G. told Ballou about overdosing the day before and requested additional heroin, which Ballou supplied. That evening, J.C.G. overdosed on heroin and fentanyl and died.
Investigators quickly identified defendant Tony Davis as the person who supplied Ballou with heroin and fentanyl. Among other evidence, the complaint quotes a text message that Ballou sent to Davis on October 24, 2018 informing Davis that one of his (Ballou’s) customers – J.C.G. – had overdosed and had to be revived with Narcan, and telling Davis: “your stuff def has fetnal [sic] in it.” During a court-authorized search of Davis’ residence, law enforcement officers found evidence of fentanyl, heroin, cocaine, and methamphetamine, as well as syringes and payment ledgers.
“As the opioid epidemic continues to rage across the nation, we are committed to doing everything we can to save lives,” said U.S. Attorney Robert Brewer. “That includes investigating overdose deaths as homicides and pursuing charges against dealers of the poison that is killing people every single day in this country.” According to the San Diego County Medical Examiner, deaths caused by fentanyl analogs more than doubled in San Diego County in 2017, rising from 33 to 84, and the office expects a slight increase in 2018 when pending investigations are finalized.
Task force agents and officers arrested Davis on November 15, 2018. Defendant Tony Davis made his initial appearance before U.S. Magistrate Judge Linda Lopez on January 15, 2019. Defendant Travis Ray Ballou is expected to make his initial appearance sometime next week.
This case is being prosecuted by Assistant U.S. Attorneys Stephen Wong and Mikaela Weber.
DEFENDANTS Case Number 19-mj-0142
Tony Davis Age: 63
Travis Ray Ballou Age 40
SUMMARY OF CHARGES
Distribution of Fentanyl Resulting in Death – Title 21, U.S.C., Section 841(b)(1)(C)
Maximum penalty: Mandatory minimum 20 years in prison up to life
AGENCIES
San Diego County District Attorney’s Office
Drug Enforcement Administration
San Diego Police Department
San Diego Medical Examiner’s Office
San Diego District Attorney’s Office
Homeland Security Investigations
Department of Health Care Services
Federal Bureau of Investigation
National City Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Robert S. Brewer, Jr. Sworn in as United States Attorney for the Southern District of CaliforniaRead the Press Release
Kelly Thornton (619) 546-9726 or Cindy Cipriani (619) 546-9608
NEWS RELEASE SUMMARY – January 16, 2019
SAN DIEGO – Robert S. Brewer, Jr., a decorated Vietnam War veteran, former prosecutor and prominent San Diego litigator for decades, was sworn in today as the United States Attorney for the Southern District of California by Chief U.S. District Court Judge Barry Ted Moskowitz.
Mr. Brewer took the oath of office in federal court this morning before an audience that included family members, lifelong friends, members of the legal community, judges and staff from the court and the U.S. Attorney’s Office. As the United States Attorney, Mr. Brewer is the chief federal law enforcement officer responsible for prosecuting and defending the interests of the United States in one of the busiest judicial districts in the nation.
“It is one of my life’s great honors to serve as the United States Attorney for the Southern District of California,” Mr. Brewer said in a statement. “I am committed to fairness, equality, justice and above all the rule of law. I will draw on my valuable life experiences to uphold these principles and protect our community and our border. It will be a privilege to work with the skillful and dedicated attorneys and staff in the office. I also want to highly commend Adam Braverman who served as U.S. Attorney for the past 14 months and Alana Robinson who served as U.S. Attorney from January to November 2017. Both served with distinction and brought great credit to the office.”
President Trump nominated Mr. Brewer to serve as U.S. Attorney for this district on June 25, 2018, upon the recommendation of U.S. Senators Kamala Harris and Dianne Feinstein. The full Senate unanimously confirmed his appointment on January 2, 2019.
During today’s swearing in, Judge Moskowitz noted Mr. Brewer’s many contributions to his country and community – from heroic actions as a combat veteran in Vietnam to volunteer work for the American Red Cross, the San Diego Humane Society and Canine Companions for Independence.
He also praised Mr. Brewer’s legal accomplishments. “I’ve known Bob Brewer for 33 years,” Judge Moskowitz said. “He is one of the five best lawyers I have ever met.”
Until recently, Mr. Brewer, a native of Ithaca, New York, was a litigation attorney at Seltzer Caplan McMahon Vitek. He previously served as a Deputy District Attorney in Los Angeles County from 1975 to 1977, and as an Assistant United States Attorney in the Central District of California from 1977 to 1982, where he successfully prosecuted a variety of cases including espionage, bank robbery, murder for hire and aircraft hijacking. He also held various management positions, including Assistant Chief of the Criminal Division. He received the Attorney General’s Commendation Award in 1981.
From 1982 through the present, Mr. Brewer has been in private practice, including from 1991 to 2009 as a partner at McKenna Long & Aldridge LLP, and from 2009 to 2014 as a partner at Jones Day. Before attending law school, Mr. Brewer served in the United States Army as an Airborne Ranger Infantry Officer and received the Silver Star and two Bronze Stars for his combat service in the Vietnam War. Mr. Brewer has been a Fellow in the American College of Trial Lawyers since 1999. He received the Daniel T. Broderick Award from the San Diego County Bar Association in 2009 and the Distinguished Graduate Award from the University of San Diego School of Law in 2016. Mr. Brewer earned his B.A. from St. Lawrence University, and his J.D. from the University of San Diego School of Law.
Brewer is married to retired U.S. District Judge Irma Gonzalez, the nation’s first Mexican-American female federal judge.
Because of the lapse in appropriations, information about possible media availability will be provided at the conclusion of the government shutdown.
Defendants Charged Separately in Fentanyl Death Overdose & Pill Trafficking RingRead the Press Release
NEWS RELEASE SUMMARY – January 8, 2019
SAN DIEGO – Today, federal prosecutors filed drug trafficking charges against four individuals following a successful undercover operation in which agents acquired over 10,000 potentially deadly fentanyl pills that were smuggled through San Diego Ports of Entry. In a separate matter, a local San Diego defendant was charged with distributing fentanyl that resulted in the July 18, 2018 death of a San Diego resident.
According to the pill ring trafficking complaint, in December 2018, federal undercover agents negotiated with a known drug trafficker based in Tijuana to purchase approximately 4,000 fentanyl pills for $24,000. Following that conversation, the trafficker arranged for defendants to smuggle fentanyl pills through the San Diego Ports of Entry. On January 7, 2019, defendant Dianna Dominguez arrived in a vehicle with defendants Felix Inzunza-Dominguez, Jr. and Norma Macias-Dominguez. Inzunza-Dominguez., Jr. eventually exited the vehicle with a bag and headed to the nearby Frye’s parking lot, where he delivered about 4,000 fentanyl pills to an undercover agent, expecting to receive $24,000. As alleged in the complaint, the bag also contained two condoms, believed to be the smugglers’ method of concealing the fentanyl as they entered the United States. Defendants Macias-Dominguez and Inzunza-Dominguez, Jr. had previously each delivered 1,000 fentanyl pills to an undercover agent, in exchange for $8,000 per transaction.
Following the above incident, the undercover agent told the trafficker in Mexico that he did not receive the fentanyl pills and requested another 2,000 fentanyl pills. According to the complaint, after that exchange, defendant Tanairi Ponce placed 2,000 fentanyl pills in her bra, crossed the border, and delivered 2,000 pills to the agent, at which point she was arrested.
The Drug Enforcement Administration, Homeland Security Investigations, and the San Diego Sheriff’s Office assisted in the undercover investigation targeting the fentanyl smuggling ring.
Following their arraignment this afternoon before Judge Michael Berg, all four defendants entered not guilty pleas. The court scheduled their detention hearing on January 11, 2019 at 10:30 a.m.
In a separate action, defendant Christopher James Stracuzzi was arraigned today in federal court on the charge of distributing fentanyl resulting in death. The federal complaint was unsealed in federal court following his afternoon arraignment before Judge Michael Berg. The complaint alleges that on July 18, 2018, at approximately 8:43 p.m., the San Diego Police Department ("SDPD") received a 911 call in reference to an unconscious male who was laying on the floor in his apartment, unresponsive. Paramedics arrived on scene and unsuccessfully attempted resuscitation. The individual was pronounced deceased at 9:12 p.m.
The deceased’s roommate later advised investigators that Stracuzzi sold the deceased 12 tablets, which the roommate believed were oxycodone pills. They both took one and fell asleep. After learning from the Medical Examiner's Office that her roommate had died of a fentanyl overdose, she suspected the oxycodone (Percocet) tablets were counterfeit pills containing fentanyl. She gave agents the remaining 10 tablets, which the DEA Southwest Regional Laboratory analyzed and found to contain fentanyl.
The Drug Enforcement Administration, Homeland Security Investigations, San Diego Police Department, Federal Bureau of Investigation and Department of Health Care Services, along with the San Diego District Attorney’s Office and the U.S. Attorney’s Office, are part of a team that investigates and prosecutes fatal overdose cases.
Stracuzzi entered a not guilty plea, following his arraignment this afternoon, before Judge Michael Berg and is scheduled for a detention hearing on January 11, 2019 at 10:30 a.m.
“When drug traffickers smuggle or distribute black market pills laced with fentanyl, they are inviting buyers to play Russian roulette with their lives,” said Adam L. Braverman, United States Attorney for the Southern District of California. “Stopping the importation and sale of these exceedingly dangerous pills remains one of the Department’s most important priorities. We won’t rest until we take every pill and every dealer off the street.”
“Tragic cases of overdose deaths caused by fentanyl will leave scars on families in our communities for decades to come,” said HSI San Diego SAC Dave Shaw. “HSI is committed to working with our partners to remove this scourge from our streets. We urge everyone to take the time to learn about these deadly drugs and take the steps necessary to protect their families and loved ones.”
“DEA continues to encounter an alarming amount of counterfeit pills laced with fentanyl in San Diego County – pills that look exactly like legitimate prescription pills,” said DEA Special Agent in Charge Karen Flowers. “If you didn’t obtain the prescription pill from an authorized medical practitioner, you are playing Russian roulette. Fentanyl is deadly. Don’t wait to learn the lesson from the Medical Examiner.”
These cases are being prosecuted by Assistant United States Attorney Sherri Walker Hobson.
DEFENDANTS Case Number 19 MJ 0071
Dianna Dominguez (San Diego)
Felix Inzunza-Dominguez, Jr. (Tijuana)
Norma Macias-Dominguez (Tijuana)
Tanairi Ponce (Tijuana)
SUMMARY OF CHARGES
Title 21 U.S.C. Section 841(a)(1) Possession of a Controlled Substance with Intent to Distribute
Maximum penalty: Life in custody, with a mandatory minimum penalty of ten years.
DEFENDANT Case Number 19 MJ 0049
Christopher James Stracuzzi (San Diego)
SUMMARY OF CHARGES
Title 21 U.S.C. §§ 841(a) & 841(b)(l)(C) Distribution of Fentanyl Resulting in Death
Title 18 U.S.C. § 2 Aiding and Abetting
Maximum penalty: Life in custody, with a mandatory minimum penalty of twenty years.
AGENCIES
Drug Enforcement Administration
Homeland Security Investigations
San Diego Sheriff’s Office
San Diego Police Department
Federal Bureau of Investigation
Department of Health Care Services
Four Defendants Receive Significant Sentences for Child Exploitation CrimesRead the Press Release
NEWS RELEASE SUMMARY – December 18, 2018
SAN DIEGO - Federal judges sentenced four defendants -- Kenneth Bigler, Jospeh DeLeon, Denziel Buirke, and Karl Kenneth Abbott -- in separate Project Safe Childhood (PSC) criminal matters to significant time in custody yesterday, recognizing the gravity, irreparable harm and heinous nature of sexual offenses that victimize society’s most vulnerable citizens, our children.
“One of the Department’s most critical missions is protecting vulnerable children who cannot defend themselves,” said U.S. Attorney Adam L. Braverman. “These sentences send a strong message that dangerous sexual predators will be placed under lock and key for as long as necessary to protect our children.”
“With today's sentencings, a voice was given to the most defenseless members of our society. Protecting our children from sexual predators is a priority for the FBI,” said FBI Special Agent in Charge John Brown. “The FBI will continue to work with our law enforcement partners here and abroad, to protect our world's children from those who would seek to exploit their innocence.”
“Recent cases demonstrate there remains an urgent need to warn parents about the extraordinary risks that sexual predators pose to children. Especially on the Internet, children are most vulnerable to victimization by people they mistakenly trust,” said Dave Shaw, HSI Special Agent in Charge in San Diego. “Those who engage in this criminal behavior should be forewarned that HSI, along with our law enforcement partners, will use every tool at our disposal to end the sexual exploitation of children and keep our children safe, whether they are around the block or around the world."
DEFENDANT Criminal Case No. 17CR2509-JAH
Kenneth Bigler Age: 54 Walnut, CA
Kenneth Bigler was sentenced to 210 months in custody following his guilty plea to one count of Attempted Sexual Exploitation of a Child, in violation of 18 U.S.C § 2251(c) & (e). Bigler has been in federal custody since his arrest on August 14, 2017. Bigler’s term of custody will be followed by a 10-year term of supervised release.
According to public records, FBI agents conducting an investigation of Bigler discovered multiple electronic communications between Bigler and an individual in Mexico. Bigler and the individual were attempting to arrange meetings in Mexico, during which Bigler intended to engage in sexual activity with minors. In the communications, Bigler requested that the individual provide minors as young as eight years old to engage in sexual activity with Bigler in Mexico. When interviewed by the FBI, Bigler admitted to traveling to Mexico on multiple occasions, hoping to engage in sexually explicit conduct with minors. Bigler also admitted to agents that he engaged in sexual activity in Mexico with girls between 14 and 16 years old. Forensic analysis of digital and computer media possessed by Bigler revealed multiple videos, created by Bigler in Mexico, which depicted Bigler engaged in sexually explicit conduct with an apparent minor. Bigler then transported those videos through the Southern District of California to his residence in the Central District of California.
During the sentencing hearing, U.S. District Judge John A. Houston expressed concern about Bigler’s prior criminal history, which included multiple convictions for indecent exposure, and Bigler’s status as a registered sex offender at the time the current offense was committed. Judge Houston admonished Bigler that it seemed his prior convictions had not “tempered his treatment of young people” and emphasized his concern about the gravity of Bigler’s “extensive criminal conduct.”
This matter is being prosecuted by Special Assistant U.S. Attorney Renee Green.
DEFENDANT Criminal Case No. 17CR2509-JAH
Joseph DeLeon Cruz Age: 58 San Diego, CA
Joseph DeLeon Cruz was sentenced to 60 months in custody following his guilty plea to one count of Receipt of Images of Minors Engaged in Sexually Explicit Conduct, in violation of 18 U.S.C. § 2252(a)(2). Cruz has been in federal custody since his arrest on April 2, 2018. Cruz’s term of custody will be followed by a 7-year term of supervised release.
According to the public record, on or before June 2, 2016, Cruz used a publicly available peer-to-peer file-sharing torrent program to receive digital files of visual depictions of minors engaged in sexually explicit conduct via the internet. The peer-to-peer file-sharing torrent program made those same files available for download by other users of the program. On four occasions between May 24 and June 2, 2016, a FBI agent obtained multiple complete files directly and solely from Cruz’s computer within his residence and they depicted images of prepubescent females engaging in sexually explicit conduct. Agents seized multiple items of digital evidence from Cruz’s residence pursuant to a federal search warrant. Upon forensic analysis, thousands of images and videos of minors, including prepubescent minors, engaging in sexually explicit conduct were found on two different devices (a hard drive and a laptop computer) seized from Cruz’s bedroom. In addition, multiple files indicating use of file-sharing software, or torrents, were found on Cruz’s laptop computer.
This matter is being prosecuted by Special Assistant U.S. Attorney Renee Green.
DEFENDANT Criminal Case No. 17cr2678-BEN
Denziel S. Burke Age: 20 El Cajon, CA
U.S. District Court Judge Roger T. Benitez sentenced Denziel S. Burke to 112 months in custody and five years of supervised release for sex trafficking of a minor. Burke previously pled guilty to trafficking a fourteen year-old minor female, admitting that he arranged for her to have commercial sex ads placed on backpage.com, a site commonly used for advertising commercial sex. Over the course of two days, Burke drove his victim to multiple locations throughout the Southern District of California where he arranged for her to perform commercial sex acts on unknown males.
Burke directly arranged the commercial sex acts by text messaging with potential clients, determining the client’s address, and driving the minor female victim to the location of the client. Burke admitted that he knew the victim was 14 years-old at the time he was transporting, harboring, and maintaining her for the purpose of performing commercial sex acts. When the San Diego Human Trafficking Task Force attempted to arrest Burke on August 8, 2017, he struck an unmarked police vehicle and fled at a high rate of speed. The San Diego Police Department rescued the minor victim that day, and the United States Marshals Service assisted in locating and arresting Burke two days later.
In determining his sentence, Judge Benitez noted the irreparable harm caused to the victims of this heinous crime, and acknowledged the need for significant sentences to serve as a deterrent.
This case is being prosecuted by Assistant U.S. Attorney Eric Roscoe.
DEFENDANT Criminal Case No. 16cr2178-MMA
Karl Kenneth Abbott Age: 59 San Diego, CA
Karl Kenneth Abbott was sentenced by U.S. District Judge Michael M. Anello to 78 months in custody following his guilty plea to one count of Receipt of Images of Minors Engaged in Sexually Explicit Conduct, in violation of 18 U.S.C § 2252(a)(2). Abbott’s term of custody will be followed by a 7-year term of supervised release.
Abbott came to the attention of law enforcement due to his use of a publicly available peer-to-peer file-sharing program to receive images and videos of minors engaged in sexually explicit conduct via the internet. The peer-to-peer file-sharing program made those same files available for download by other users of the program, as well as law enforcement. A search warrant was executed at the defendant’s home, and upon forensic analysis of seized items, hundreds of images and videos of minors, including prepubescent minors, engaging in sexually explicit conduct were found on two different seized computer devices.
This matter is being prosecuted by Assistant U.S. Attorney Janet Cabral.
INVESTIGATIVE AGENCIES:
San Diego Internet Crimes Against Children Task Force
San Diego Human Trafficking Task Force
Federal Bureau of Investigation
Homeland Security Investigations
United States Marshals Service
San Diego Police Department
National City Police Department
The San Diego Internet Crimes Against Children Task Force is a national network representing over 4,500 federal, state, and local law enforcement and prosecutorial agencies, all working to combat the sexual exploitation of children through the internet.
The San Diego Human Trafficking Task Force combines the efforts of federal and local law enforcement to ensure that those who seek to do harm to the most vulnerable in our society are brought to justice.
Defendant in Expanding Cocaine Conspiracy Involving Weapons Stockpile Sentenced to 135 MonthsRead the Press Release
NEWS RELEASE SUMMARY – December 14, 2018
SAN DIEGO – Juan A. Mexicano, aged 33, was sentenced today in federal court by U.S. District Judge Gonzalo P. Curiel to 135 months in custody. Mexicano previously pled guilty, admitting his role in an expanding cocaine distribution conspiracy, extending from Guatemala and Mexico to San Diego and Chicago, that involved the seizure of grenades, .50 caliber firearms, assault weapons and other firearms.
In his plea agreement, Mexicano admitted to maintaining a narcotics stash house in Illinois that he used to distribute cocaine from a Mexican-based trafficker, identified in court documents as “El 99”. Mexicano also acknowledged that he made arrangements to import cocaine through the Southern District of California and that he possessed weapons seized from a storage facility in Illinois. The weapons included two hand grenades; a grenade launcher; five .50 caliber weapons; one .22 handgun with a silencer; 26 other assault style weapons, including a submachine gun; more than 1,000 rounds of ammunition; and six ballistic vests. During sentencing, Judge Curiel noted “this catalog of armaments was capable of mass destruction” and that these weapons “evidence[d] the danger to the community that this group of drug traffickers posed to the community in Illinois.”
Mexicano, who is the fourth defendant to be sentenced in the case, further admitted that the stash house near Chicago was used for the temporary storage of cocaine and acknowledged that up to approximately 150 kilograms (approximately 330 pounds) of cocaine was stored there.
As part of its sentence, the court credited Mexicano with 15 months, for time served in state custody. Mexicano also faces sentencing on January 4, 2019, in connection with his separate guilty plea to charges in Kane County, Illinois (Case No. 17CF1720) related to the weapons stockpile.
“I am grateful for the efforts of our law enforcement partners to remove these dangerous narcotics and weapons from our communities and out of the hands of violent drug dealers,” said U.S. Attorney Adam Braverman. “We are committed to stopping the traffickers, whose sole aim is to profit from human misery.”
“Today’s sentencing of Mexicano is the example of the great collaborative effort of law enforcement and prosecutors to bring to justice those who endanger our communities with illicit drugs and dangerous weapons.” said David Shaw, Special Agent in Charge of Homeland Security Investigations in San Diego. “This investigation demonstrates that these types of criminals, who facilitate the movement of contraband for transnational criminal organizations will be pursued by law enforcement and held accountable for their actions.”
In addition to Mexicano, other defendants who have entered guilty pleas in the federal case are: Walter Rovidio Ipina, aged 40; David Castaneda-Solis, aged 33; Zachary Vasquez, aged 27; and Jacob Castillo, aged 48. Only Vasquez remains to be sentenced.
Through his plea agreement, Ipina admitted that, during 2016, he moved the cocaine provided by “El 99” through the Southern District of California by using his family owned trucking business’ tractor-trailer to transport the cocaine from Southern California to the Chicago, Illinois area. In September 2016, he was stopped by law enforcement with 32 kilograms of cocaine. Ipina was sentenced to 50-months in custody by Judge Curiel on August 3, 2018.
Castaneda-Solis pleaded guilty to laundering narcotics proceeds. On August 12, 2016, Castaneda-Solis was caught by law enforcement while he was unloading $154,000 in narcotics proceeds from a hidden compartment in the dashboard of a Honda Pilot vehicle. Castaneda-Solis admitted that he placed these proceeds into a black bag for delivery to Mexico. Castaneda-Solis was sentenced to 70 months in custody by Judge Curiel on October 3, 2018.
Vasquez pleaded guilty to the cocaine conspiracy and admitted that he served as a narcotics load coordinator/recruiter. He admitted to coordinating with “El 99” in Mexico. Vasquez also admitted to recruiting and supervising a driver who smuggled cocaine through the San Ysidro Port of Entry on at least four occasions before that driver was arrested. Vasquez admitted that the scope of his involvement in the conspiracy included trafficking beteween 125 to 150 kilograms of cocaine. Vasquez is scheduled for sentencing on March 15, 2019.
Castillo-Lopez pleaded guilty to laundering narcotics proceeds. In his plea agreement, he admitted to using bulk currency to purchase trucks and other vehicles that he arranged to export to benefit narcotics traffickers in Guatemala. Castillo-Lopez was sentenced to 33 months in custody by Judge Curiel on November 2, 2018.
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. Attorney Lawrence A. Casper.
DEFENDANTS Case Number 17-cr-648
Juan A. Mexicano Age: 33 Addison, IL
Walter R. Ipina Age: 40 Victorville, CA
David Castaneda-Solis Age: 34 Mexico
Zachary Vasquez Age: 27 Anaheim, CA
Jacob Castillo-Lopez Age: 48 Guatemala
SUMMARY OF CHARGES TO WHICH GUILTY PLEAS ENTERED
Mexicano, Ipina & Vasquez
Conspiracy to Unlawfully Distribute Cocaine, 21 U.S.C. § 846
Maximum penalty: Life in prison, and a mandatory minimum 10 years; $10,000,000 fine; and at least five years’ supervised release up to life.
Castaneda-Solis & Castillo-Lopez
Conspiracy to Launder Monetary Instruments, 18 U.S.C. § 1956(h)
Maximum penalty: 20 years custody; 3 years supervised release; and $500,000 fine.
INVESTIGATING AGENCIES
Homeland Security Investigations
Bureau of Alcohol Tobacco Firearms and Explosives
Ventura County, CA Sheriff’s Office
Police Departments of: Elgin, IL; Addison, IL.; Chicago, IL; Hoffman Estates, IL;
New Lenox, IL; Olympia Fields, IL; Streamwood, IL; and Lombard, IL
Sheriff’s Offices of: Kane County, IL; DuPage County, IL; Will County, IL
Tractor Trailer Driver Charged with Importing 1,309 Pounds of Methamphetamine, 9.37 Pounds of Heroin, and 2.64 Pounds of Cocaine at the Calexico East Commercial Port of EntryRead the Press Release
NEWS RELEASE SUMMARY – December 6, 2018
EL CENTRO, CALIFORNIA – Today, Jose Guadalupe Aviles-Cordero, 60, was arraigned by Magistrate Judge Ruth Bermudez Montenegro on charges of importing 1,309 pounds of methamphetamine, 9.37 pounds of heroin, and 2.64 pounds of cocaine. Aviles-Cordero was arrested at the Calexico East Commercial Port of Entry on December 5, 2018.
According to court records, Aviles-Cordero, a Mexican citizen living in Mexicali, Baja California, was the driver of a tractor pulling an empty trailer as it approached the cargo facility. U.S. Custom Border & Protection (“CBP”) officers found anomalies in the roof area of the trailer. Upon further inspection of the roof area, CBP officers discovered 90 packages of methamphetamine with a weight of 1,309 pounds, multiple packages of heroin with a weight of 9.37 pounds, and multiple packages of cocaine with a weight of 2.64 pounds.
At defendant’s initial appearance, the United States requested detention based on risk of flight. The detention hearing is scheduled for December 11, 2018 at 10:00 am before Judge Montenegro. His preliminary hearing is scheduled for December 20, 2018 at 1:30 pm before Judge Montenegro.
CBP officers at the border crossings in Southern California routinely stop illegal activity while processing millions of legitimate travelers into the United States. Those statistics can be found here: CBP-enforcement-statistics.
If you have any information related to suspected smuggling activity at the Calexico East Cargo facility, the Department of Homeland Security encourages you to report it by calling its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form.
DEFENDANT Case Number 18MJ11506
Jose Guadalupe Aviles-Cordero Age: 60 Mexicali, Mexico
SUMMARY OF CHARGES
Importation of Controlled Substances
Maximum penalty: 10 years minimum to life; $1,000,000 fine; supervised release; $100 special assessment)
INVESTIGATING AGENCIES
U.S. Customs & Border Protection (CBP)
Homeland Security Investigations
The public is reminded that a complaint is a charging document. A defendant is presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.
Two Border Patrol Agents Assaulted in Separate IncidentsRead the Press Release
NEWS RELEASE SUMMARY – November 30, 2018
SAN DIEGO – Franklin Adriel Rohac-Garci and Frazy Jiron were charged in separate complaints today with assault on a federal officer and illegal entry arising out of incidents that occurred last night.
As alleged in one of the complaints, the first incident occurred when Border Patrol Agent C. Nelson was conducting routine patrol in the Imperial Beach Border Patrol Station’s area of resonsibilitity. At approximately 9:30 p.m., Agent Nelson encountered five subjects, including one later identified as defendant Frazy Jiron. Agent Nelson approached the subjects, identified himself as a Border Patrol agent, and told the group to not move. Jiron began to stand up and was ordered to lie down. As Agent Nelson attempted to handcuff Jiron, Jiron made a statement that caused the rest of the group to begin to stand up. After a brief struggle, Jiron managed to get back to his feet and the rest of the group stood up and began to run. Jiron threw an elbow behind him that struck Agent Nelson in the chest. A brief struggle ensued, causing both Agent Nelson and Jiron to fall down a hill. Jiron was later arrested and admitted he is a Honduran citizen, with no legal right to be in the United States.
The second charging document alleges that at approximately 10:45 p.m., Border Patrol Agent Brian D. Cox was conducting routine patrol at the Imperial Beach Border Patrol Station. Agent Cox encountered an individual, later identified as defendant Franklin Ariel Rochac-Garcia, running towards his location. Agent Cox ordered him to stop. Rochac ignored Agent Cox’s command and instead continued running towards him. As Rochac approached Agent Cox, Rochac reached back with his arm and swung at Agent Cox. Agent Cox avoided the punch and grabbed Rochac’s sleeve in an effort to restrain him. Agent Cox and Rochac fell to the ground and Rochac got up and ran south towards the border. As Rochac attempted to jump over the fence, Agent Cox was able to detain him. Rochac was arrested after stating he was a citizen of El Salvador without any immigration documents allowing him to enter or remain in the United States legally.
“Assault on federal officers is one of the Department of Justice’s top priorities,” said U.S. Attorney Adam L. Braverman. “Our office is committed to vigorously prosecuting these cases.”
The case against defendant Rohac-Garci is being prosecuted by Assistant United States Attorney Colin McDonald, and the case against defendant Jiron is being prosecuted by Assistant United States Attorney Carlos Arguello.
DEFENDANT Case Number 18 MJ 6082
Franklin Adriel Rohac-Garci
DEFENDANT Case Number 18 MJ 6085
Frazy Jiron
SUMMARY OF CHARGES (both defendants)
Assault on a Federal Officer, in violation of Title 18, U.S.C., Sec. 111 (a)
Maximum penalty: Twenty years in prison, $250,000 fine
Illegal Entry, in violation of Title 8 U.S.C., Sec. 1325
AGENCIES
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.
Mexican National Charged with Assaulting Border Patrol AgentRead the Press Release
NEWS RELEASE SUMMARY – November 29, 2018
SAN DIEGO – A Mexican national attempting to illegally re-enter the United States while armed with a loaded firearm was arrested and charged in an assault on a U.S. Border Patrol agent earlier this week.
According to the criminal complaint, at approximately 4:30 a.m., on Monday November 26, 2018, approximately ½ mile north of the United States/Mexico border, and two miles east of the Otay Mesa Port of Entry, a United States Border Patrol Agent responded to a radio call-out regarding a person crossing on foot from Mexico to the United States. After a short search, the agent encountered Hector Rodriguez-Chavez lying face-down in tall grass. As the agent drew near, Rodriguez turned and pointed a loaded pistol at the agent. The agent placed his body on Rodriguez’s right arm in an attempt to gain control of the pistol. Rodriguez resisted and the two wrestled for about a minute before two more agents arrived on the scene. Rodriguez ignored several verbal commands to relinquish the pistol and stop resisting. The second agent to arrive deployed a tazer to subdue Rodriguez and gain control over the pistol. Rodriguez was detained and arrested.
Court records show Rodriguez has a criminal record that includes felony convictions for violent drug, immigration and firearms crimes. Rodriguez is a Mexican national who has previously been deported from the United States.
“Assault on federal officers is one of the Department of Justice’s top priorities,” said U.S. Attorney Adam L. Braverman. “Our office is committed to vigorously prosecuting these cases.”
“Our agents’ vigilance prevented this dangerous person from illegally re-entering our communities,” said Rodney S. Scott, Chief Patrol Agent for San Diego Sector Border Control.
This case is being prosecuted by Assistant United States Attorney Stephen H. Wong.
DEFENDANT Case Number 18mj6015-NLS
Hector Rodriguez-Chavez, Age 57
SUMMARY OF CHARGES
Assault on a Federal Officer, in violation of Title 18, U.S.C., Sec. 111 (a)(l ) and (b)
Maximum penalty: Twenty years in prison, $250,000 fine
Alien in Possession of a Firearm, in violation of Title 18, U.S.C., Sec. 922(g)(5)
Maximum penalty: ten years in prison, $250,000 fine
AGENCIES
U.S. Border Patrol
Federal Bureau of Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Tennessee Nurse Practitioner Pleads Guilty for Role in $65 Million Tricare FraudRead the Press Release
NEWS RELEASE SUMMARY – November 27, 2018
Candace Michelle Craven, a Tennessee-based nurse practitioner pleaded guilty in federal court today, admitting that she participated in a health care fraud scheme that bilked TRICARE – the health care program that covers United States service members – out of more than $65 million. As part of her guilty plea, Craven admitted to conducting sham “telemedicine” evaluations that resulted in the prescription of exorbitantly expensive compounded medications to patients that she never saw or examined in person.
Craven entered her guilty plea, to conspiracy to commit health care fraud, before U.S. District Judge Janis L. Sammartino, who will sentence Craven at a hearing scheduled for February 8, 2019.
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient requires a particular dosage or application or is allergic to a dye or other ingredient.
According to the guilty plea, a team of individuals worked to recruit and pay Marines, primarily from the San Diego area, and their dependents – all TRICARE beneficiaries – to obtain compounded medications that would be paid for by TRICARE. This information was sent to Choice MD, the Tennessee medical clinic that employed Craven. Craven then conducted phone calls with the TRICARE beneficiaries, and recommended that they be prescribed compounded medications despite never examining the patients in person. These prescriptions were then signed by doctors employed by Choice MD, were not given to the beneficiaries, but sent directly to particular pharmacies controlled by co-conspirators, which filled the prescriptions and billed TRICARE at exorbitant prices.
Josh Morgan, a former Marine from San Diego, pleaded guilty in April to Conspiracy to Commit Health Care Fraud for his role in recruiting TRICARE beneficiaries to fraudulently receive these prescriptions. The doctors who signed the prescriptions, Carl Lindblad and Suzy Vergot, pleaded guilty to the same charges in September.
Between December 2014 and May 9, 2015 – the day that TRICARE stopped reimbursing for compounded medications – doctors working at Choice MD signed 4,442 total prescriptions. Over this time, their co-conspirators billed TRICARE $65,679,512 for these prescriptions.
Craven represents the seventh defendant charged in relation to this fraud scheme. In addition to Morgan, Lindblad, and Vergot, Jimmy and Ashley Collins, the owners of Choice MD, and CFK, Inc., the owner of a co-conspirator pharmacy, were indicted in March 2018 on charges of Conspiracy to Commit Health Care Fraud and Illegal Payments of Remunerations. That case remains pending.
This case is being prosecuted by Assistant United States Attorneys Benjamin J. Katz and Mark W. Pletcher.
DEFENDANTS Case Number 18-cr-4209-JLS
Michelle Candace Craven Age: 52
SUMMARY OF CHARGES
Conspiracy to Commit Health Care Fraud – Title 18, U.S.C § 1349
Maximum penalty: 10 years’ imprisonment and fine of higher of $250,000 or double loss amount
AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
IRS Criminal Investigation Division, Gulfport, MS
Federal Bureau of Investigation - Jackson, MS Field Office
Convicted Felon Pleads Guilty to Possessing 11 Firearms and Dealing Crack Cocaine, Cocaine and HeroinRead the Press Release
NEWS RELEASE SUMMARY – November 27, 2018
SAN DIEGO – Convicted felon Dwight Wayne Jordan, aged 60, pleaded guilty today in federal court before U.S. Magistrate Judge Nita L. Stormes to a two Count Superseding Information charging him with knowingly and intentionally possessing with intent to distribute cocaine base (i.e., crack cocaine), cocaine and heroin along with illegally possessing eleven firearms that admittedly included semi-automatic weapons, shotguns, rifles and .357 Magnum revolvers.
Through his plea agreement, Jordan, a San Diego resident, admitted that, on September 8, 2018, he was the driver and sole occupant of a BMW X3 traveling on I-94 near Market Street in San Diego when a San Diego Police Department (SDPD) officer attempted to conduct a traffic stop. Although Jordan initially yielded, as the officer exited his vehicle, Jordan accelerated and attempted to flee, running two red lights. While attempting to evade the officer, Jordan threw a bag from the window that was subsequently recovered by SDPD. Jordan admitted in his plea agreement that the bag contained approximately two kilograms of cocaine. After the vehicle was stopped and Jordan arrested, officers recovered more than $6,900 in cash that was admittedly the proceeds of narcotics trafficking.
On September 18, 2018, law enforcement also executed follow-up search warrants at two locations associated with Jordan in San Diego. Those searches yielded eleven firearms; $36,499 in cash that was also admittedly the proceeds of narcotics trafficking; and significant quantities of cocaine base, cocaine and heroin. Jordan admitted that he illegally possessed the eleven firearms identified in the plea agreement as well as the drugs, which he intended to further distribute. Due to his prior drug felony conviction, Jordan is prohibited from possessing a firearm or ammunition under federal law. The plea arrangement also includes forfeiture of each of the eleven firearms and associated ammunition; $43,440 in United States currency; and a 2013 Porsche Cayenne in which a portion of the narcotics proceeds were located.
The federal narcotics charge to which Jordan has pleaded guilty carries a mandatory minimum ten year sentence and a maximum life sentence and the firearms-related charge carries a maximum 10 year sentence. Jordan is scheduled to be sentenced on February 15, 2019 before U.S. District Judge Gonzalo P. Curiel in San Diego.
This 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.
This matter is being prosecuted by Assistant U. S. Attorney Larry Casper.
DEFENDANTS Criminal Case Number 18-cr-4496
Dwight Wayne Jordan Age: 60 San Diego, California
SUMMARY OF CHARGES TO WHICH GUILTY PLEAS ENTERED
Count 1:
Possession With the Intent to Distribute Cocaine Base, Cocaine and Heroin, 21 U.S.C. 841(a)
Maximum penalty: Life in prison, and a mandatory minimum 10 years; $10,000,000 fine; and at least five years’ supervised release up to life
Count 2:
Felon in Possession of a firearm, 18 U.S.C. 922(g)(1)
Maximum penalty: 10 years custody $250,000 fine and 3 years supervised release
INVESTIGATING AGENCIES
Drug Enforcement Administration
Bureau of Alcohol Tobacco Firearms and Explosives
San Diego Police Department
Government Contractors Found Guilty in $11 Million Veteran Set-Aside Fraud SchemeRead the Press Release
NEWS RELEASE SUMMARY – November 21, 2018
SAN DIEGO, CA – A federal jury today convicted Andrew Otero and his company, A&D General Contracting, Inc. (“A&D”), on charges that they fraudulently obtained $11 million in federal contracts specifically set aside for service-disabled veteran-owned businesses.
The evidence demonstrated that Otero had no military experience. Yet Otero (on behalf of A&D) and veteran Roger Ramsey (on behalf of Action) participated in a conspiracy to defraud the government by forming a joint venture (“the JV”) – and falsely representing that Action and the JV qualified as service-disabled veteran-owned small businesses (“SDVOSB”). Based on the false claim to SDVOSB eligibility, the conspirators fraudulently obtained approximately $11 million in federal government construction contracts or task orders with the Department of Veterans Affairs (“VA”) and the Army Corps of Engineers (“ACE”).
As proven at trial, the fraudulent conspiracy involved set-aside contracts that could only be bid upon by legitimate service-disabled veteran-owned small businesses – a designation that did not apply to Otero or A&D. To appear qualified, Otero and Ramsey initially executed an agreement to create the JV (“the JV Agreement”), which stated that Ramsey’s company (Action) would be the managing venturer, employ a project manager for each of the set-aside contracts, and receive the majority of the JV’s profits.
However, as proved at trial, six months later, Otero and Ramsey signed a secret side agreement that made clear the JV was ineligible under the SDVOSB program. For example, the side agreement said the parties created the JV so that A&D could simply “use the Disabled Veteran Status of Action Telecom” to bid on contracts. The side agreement also stated that A&D – not Action – would run the construction jobs. They also agreed that “A&D will keep 98% of every payment; Action Telecom will receive 2% of every payment.”
In addition to the secret side agreement, the evidence demonstrated several ways in which the JV did not operate as a legitimate SDVOSB, but was essentially controlled by Otero and A&D. For example, although Ramsey (a service-disabled veteran) nominally served as president of Action and the JV, he actually worked full-time for another telecommunications company. Otero and A&D, not Ramsey, controlled the day-to-day management, daily operation and long-term decision making of the JV. Among other things, Otero and A&D appointed an A&D employee as the project manager for every contract and task order.
“Our nation strives to repay the debt of gratitude we owe to our veterans by setting aside some government contracts for veterans with service-related disabilities,” said United States Attorney Adam Braverman. “These unscrupulous contractors abused this program through a cynical and illegal ‘rent-a-vet’ scheme. They are now being held fully accountable for robbing truly deserving vets of important economic opportunities.”
All four defendants are also facing civil charges in United States v. Otero, et al., Case No. 15CV0441-JAH, a case alleging violations of the false claims act based on the similar misconduct.
The defendants were ordered to appear before U.S. District Judge John Houston for sentencing on February 19, 2019 at 10:30 a.m.
This case is being prosecuted by Assistant United States Attorneys Rebecca Kanter and Aaron Arnzen.
CORPORATE DEFENDANTS
A&D General Contracting, Inc., Santee, California
INDIVIDUAL DEFENDANTS
Andrew Otero El Cajon, CA
Criminal Case No. 17CR0879-BEN
SUMMARY OF CHARGES
Count 1: Conspiracy to defraud and commit offenses (18 U.S.C. § 371)
Maximum penalties: 5 years’ imprisonment; 3 years’ supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $10
Count 2-4: Major fraud against the United States (18 U.S.C. § 1031)
Maximum penalties: 10years’ imprisonment; supervised release; a fine of $1,000,000 per count ($5,000,000 total); and a mandatory special assessment of $100
Counts 5-7: Wire fraud (18 U.S.C. § 1343)
Maximum penalties: 20 years’ imprisonment; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $100
10, 14: False statements (18 U.S.C. § 1001)
Maximum penalties: 5 years’ imprisonment; a fine; and a mandatory special assessment of $100
AGENCIES
Department of Veterans Affairs, Office of Inspector General
Three individuals arrested, charged with conspiracy to kidnap and kill business associate in MexicoRead the Press Release
NEWS RELEASE SUMMARY – November 20, 2018
SAN DIEGO – Yesterday, federal authorities charged Salam Razuki, Sylvia Gonzales and Elizabeth Juarez with offenses related to a conspiracy to kidnap and kill a business associate over a dispute involving real estate investment properties, most of which were leased to marijuana dispensaries. All three defendants were arrested last week.
According to the complaint, in October 2018, Salam Razuki and Sylvia Gonzales met with a Confidential Human Source and asked the source to arrange to kill one of their business associates, N.M. (name redacted for privacy reasons). Razuki and Gonzales stated that they had invested in multiple properties and business ventures with N.M. and were now involved in a civil dispute over their assets. They wanted the source to “shoot him in the face,” “to take him to Mexico and have him whacked,” or kill him in some other way. Razuki and Gonzales provided the source with a picture of N.M.
In subsequent conversations earlier this month, defendants Razuki and Gonzales, eventually joined by Elizabeth Juarez, reiterated their desire to have N.M., who they nicknamed “the midget,” taken to Mexico and killed, with Gonzales and Juarez stating they wanted to “put the turkey up to roast before Thanksgiving.” Defendants offered to pay the source $2,000, with $1,000 to be paid immediately. Defendant Gonzales went to the Goldn Bloom Dispensary and returned with $1,000 cash, which defendants provided to the source along with two addresses for N.M.
The complaint further states that on or about November 13, 2018, Gonzales called the source and indicated that she and Razuki would be with N.M. in court at the Hall of Justice at 330 West Broadway in San Diego. Gonzales asked the source to join them in order to see N.M. in person. The source declined going into the courtroom, but agreed to stand outside the building and wait for N.M. to exit. While inside the Hall of Justice, Gonzales took a picture of N.M. with her phone, sent it to the source and then called the source to describe what N.M. was wearing. Gonzales left the Hall of Justice and met with the source to further describe N.M. During this meeting, Gonzales identified the locations of two businesses N.M. manages and stated “if they take him now, it’s gunna be good.” Gonzales went back into the courthouse and provided updates as N.M. was departing the Hall of Justice, to ensure the source observed N.M. as he left.
According to the complaint, on November 15, 2018, the source met with Razuki and stated, “I took care of it.” Razuki replied, “So he will take care of it, or it’s done?” The source replied, “Done.” Razuki quickly changed the subject to discuss other business investments and pending loans. Later in the conversation, the source asked whether Razuki wanted to see proof. Razuki replied, “No, I'm ok with it. I don't want to see it.” The source then requested the remainder of the agreed-upon payment and Razuki indicated Gonzales would handle this.
The complaint reflects that defendants’ business dispute with N.M. involved approximately $40 million. In an interview with FBI, N.M. advised that he had invested in real estate with Razuki in order to lease buildings to various entities, which were primarily marijuana dispensaries.
Detention hearings for defendants Salam Razuki and Elizabeth Juarez are scheduled to occur on Tuesday, November 27, 2018 at 1:30 p.m. before U.S. Magistrate Judge Mitchell Dembin.
This case is being prosecuted by Assistant United States Attorney Fred Sheppard.
*The charges and allegations contained in the complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANT Case Number 18MJ5915
Salam Razuki
Sylvia Gonzales
Elizabeth Juarez
SUMMARY OF CHARGES
Title 18, United States Code, Section 956 - Conspiracy to kill, kidnap, maim an individual
Title 18, United States Code, Section 1201(c) - Conspiracy to kidnap
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Jury Convicts San Diego Executive and Broker of $50 Million Real Estate FraudRead the Press Release
NEWS RELEASE SUMMARY – November 20, 2018
SAN DIEGO – Following a two-week trial, a jury returned guilty verdicts on all counts against finance executive Peter Cash Doye and notary public and real estate broker Raquel Reid for their roles in a massive real estate fraud scheme that generated nearly $50 million in fraudulently-obtained loan proceeds.
The evidence presented at trial demonstrated that Doye and Reid 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 so they could obtain 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 of 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 previously pleaded guilty to participating in the scheme, and are serving sentences of 135 and 81 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.
“These defendants attempted to use their significant real estate experience to pull off an egregious fraud that created serious consequences for lenders and title owners,” said U.S. Attorney Adam Braverman. “As this case demonstrates, federal prosecutors are fully committed to protecting the integrity of our lending system by holding such criminals accountable.”
“The FBI will pursue each criminal participant in these sophisticated, multi-million dollar fraud schemes until final justice is served.” said FBI Special Agent in Charge John Brown. “Today, Peter Doye and Raquel Reid join co-conspirators Courtland Gettel and Jeffrey Greenberg as convicted felons for their roles in this massive loan fraud scheme.”
United States District Judge William Q. Hayes remanded both Doye and Reid into custody following the guilty verdicts, and set their sentencing hearings for March 4, 2019, at 9:00 am.
This case is being prosecuted by Assistant United States Attorneys Emily Allen and Andrew Young.
DEFENDANTS
Peter Cash Doye Age: 41 San Diego, CA
Raquel Reid Age: 38 San Diego, CA
CHARGES
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
United States Attorney Addresses Latest Hate Crimes Statistics and Announces Upcoming Hate Crimes ForumRead the Press Release
NEWS RELEASE SUMMARY – November 19, 2018
SAN DIEGO, CA – Adam L. Braverman, United States Attorney for the Southern District of California, responded today to a recent report reflecting that the number of hate crime incidents reported to the FBI in 2017 increased approximately 17 percent nationwide and 15 percent in San Diego.
According to the Uniform Crime Reporting (UCR) Program’s annual Hate Crimes Statistics report, law enforcement agencies reported double-digit increases nationally in hate incidents in 2017 compared to 2016. Compiling data from a newly increased number of reporting agencies nationwide, the UCR statistics also show a consistent increase in reported incidents in San Diego. In 2016, 35 reports of hate incidents were reported in San Diego, including 16 incidents motivated by race, ethnicity, or ancestry, and 7 incidents motivated by religion. In 2017, 41 incidents were reported, with race incidents increasing to 17 and incidents motivated by religion climbing to 12. Twelve incidents motivated by sexual orientation or gender were reported in both 2016 and 2017.
Outside of the city, the number of reported incidents in San Diego County slightly decreased from 18 (13 motivated by race, ethnicity, or ancestry; 1 motivated by religion; 4 motivated by sexual orientation) in 2016 to 14 (7 motivated by race, ethnicity, or ancestry; none motivated by religion; 7 motivated by sexual orientation) in 2017. No information was provided to the FBI regarding reported incidents in Imperial County.
“Hatred and violence on the basis of race, religion and sexual orientation have no place in our nation,” said U.S. Attorney Adam Braverman. “The United States has been a ‘shining city upon a hill’ because Americans appreciate that diversity makes us stronger as a people. Today, we mark the 155th anniversary of the Gettysburg Address and are reminded that we still have unfinished work. We will neither tolerate nor accept the actions of those who seek to weaken our bonds. We remain steadfast in our commitment to prosecuting those that commit crimes motivated by hate.”
“Bringing justice to victims of hate crimes is a priority for me,” District Attorney Summer Stephan said. “Hate crimes are particularly hurtful in that they target vulnerable people who have historically suffered from prejudice and they cause a ripple effect of fear and anguish within entire communities around the victim. Through our hate crimes prosecutors and victim advocates, we stand ready to support and protect victims of hate crimes and to hold their abusers accountable.”
U.S. Attorney Braverman announced the second San Diego Regional Hate Crimes Coalition’s (SDRHCC) “Stop the Hate” Community Forum, scheduled for Wednesday, November 28, 2018, at 6:00 p.m. in Balboa Park’s Santa Fe Conference Room. Earlier this year, the SDRHCC hosted the first “Stop the Hate” Community Forum at the El Cajon Police Department and plans to host additional forums in the coming months. The SDRHCC, which began in 1997, is a coalition of non-governmental organizations, community-based groups, and law enforcement agencies that coordinate outreach, education, and responses regarding hate crimes and hate incidents in the San Diego area. The forum will include panels of prosecutors explaining legal rights and resources, community leaders discussing hate incidents and bullying, and victim-witness coordinators from state and federal agencies providing information for victims of hate incidents and crimes.
In addition to United States Attorney Braverman and John Brown, Special Agent in Charge of the FBI San Diego Field Office, speakers at the Community Forum will include representatives from the Anti-Defamation League, Border Angels, Islamic Center of San Diego, San Diego District Attorney’s Office, San Diego City Attorney’s Office, and the Federal Bureau of Investigation. The forum is open to the public. Plenty of free parking is available. Press availability will begin at 5:30.
Wells Fargo Personal Banker Indicted for Money LaunderingRead the Press Release
NEWS RELEASE SUMMARY – November 15, 2018
SAN DIEGO – Luis Fernando Figueroa, a former Wells Fargo personal banker, was arrested yesterday by FBI agents and made his initial court appearance today on charges of participating in an international money laundering conspiracy. Figueroa’s apprehension marks the latest in a string of indictments and arrests tied to an international money laundering organization based in Tijuana, Mexico that operated primarily in San Diego, California. Between January and March of 2018, seven leaders of this organization were charged and arrested in San Diego. To date, five of the charged leaders 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, including the Sinaloa Cartel, between 2014 and 2016.
The money laundering organization recruited individuals to serve as “funnel account holders” and open personal bank accounts at Wells Fargo Bank and other banking institutions. Other members of the money laundering organization, known as “couriers,” travelled to San Diego, Los Angeles, the East Coast, and other U.S. cities, where they picked up and transported amounts of bulk cash ranging from thousands to hundreds of thousands of dollars in narcotics proceeds.
Once in possession of the money, the couriers deposited the money into the funnel bank accounts controlled by the money laundering organization. These funnel bank accounts were maintained at Wells Fargo Bank, as well as other domestic financial institutions. Subsequently, the funds were transferred from these United States-based accounts via international wire transfers to a series of Mexico-based shell companies operated by the money laundering organization. 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. Attorneys Blanca Quintero and Jose Castillo.
DEFENDANT
Name Age Hometown
Luis Fernando Figueroa 30 Tijuana, Mexico
SUMMARY OF CHARGES
Conspiracy to Launder Monetary Instruments (18 U.S.C. § 1956(h)).
Conspiracy (18 U.S.C. § 371).
Operation of an Unlicensed Money Transmitting Business (18 U.S.C. § 1960(a))
Maximum Penalties: 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 5 years of supervised release.
*The charges and allegations contained in an indictment, information, or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
INVESTIGATIVE AGENCIES
Federal Bureau of Investigation’s San Diego Cross Border Violence Task Force
IRS Criminal Investigations
Defendant Pleads Guilty to Importing over 20,000 Fentanyl Pills at the San Ysidro Port of EntryRead the Press Release
Believed To Be Largest Single Port Seizure Of Fentanyl Pills
Across the Southwest Border of the U.S.
NEWS RELEASE SUMMARY – November 15, 2018
SAN DIEGO – Today, Fernando Jesus Peraza, age 39, pleaded guilty before federal Magistrate Judge Jill Burkhardt to importing over 20,000 fentanyl pills. Peraza was arrested at the San Ysidro Port of Entry on August 8, 2018. Peraza, a United States citizen, resided in Tijuana at the time of the offense but worked at a local trash collection service in the United States.
According to court records, Peraza was the driver and sole occupant of his vehicle. U.S. Customs and Border Protection (“CBP”) officers initially contacted Peraza in the pre-primary inspection area; he was referred to secondary inspection, where officers found four packages concealed in the passenger side rear quarter panel. The counterfeit pills, which were designed to resemble M30s or oxycodone, contained fentanyl.
Defendant admitted today that he imported approximately 20,000 pills containing fentanyl in his vehicle and knew that his vehicle contained fentanyl, or some other prohibited drug. He faces a minimum mandatory sentence of 10 years in custody.
“Counterfeit pills are especially dangerous because users often don’t know they are ingesting fentanyl,” said U.S. Attorney Adam Braverman. “With overdoses taking a life every 8 minutes, federal law enforcement agencies are prioritizing prosecution of every individual who smuggles and distributes this deadly substance. Thanks to the vigilance of CBP, these deadly pills will not see the streets of our communities.”
Defendant is scheduled for sentencing on February 1, 2019, before United States District Court Judge Gonzalo P. Curiel.
This case is being prosecuted by Assistant United States Attorney Sherri Hobson.
DEFENDANT Case Number 18CR3908GPC
Fernando Jesus Peraza Age: 38 Tijuana, Mexico
SUMMARY OF CHARGE
Importation of Controlled Substances
Maximum penalty: 10 years minimum to life; $10,000,000 fine; supervised release; $100 special assessment)
INVESTIGATING AGENCIES
Homeland Security Investigations
U.S. Customs & Border Protection (CBP)
Former U.S. Navy Captain Pleads Guilty and Former Master Chief Petty Officer Sentenced in Sweeping U.S. Navy Corruption and Fraud ProbeRead the Press Release
NEWS RELEASE SUMMARY – November 13, 2018
SAN DIEGO – Former U.S. Navy Captain Jeffrey Breslau pleaded guilty to criminal conflict of interest charges and former U.S. Navy Master Chief Ricarte Icmat David was sentenced on corruption charges to 17 months in prison, followed by one year of supervised release and $30,000 in restitution. Both appeared before Judge Janis Sammartino of the U.S. District Court for the Southern District of California. Breslau and David are among the latest U.S. Navy officials to plead guilty and be sentenced in the expansive corruption and fraud investigation involving foreign defense contractor Leonard Glenn Francis and his Singapore-based ship husbanding company, Glenn Defense Marine Asia (GDMA).
Breslau, 52, of Cumming, Georgia was charged in September 2018 and pleaded guilty today to one count of criminal conflict of interest, admitting that while he was still employed by the U.S. Navy, he was paid over $60,000 by Francis in return for providing Francis with public relations consulting services. Francis pleaded guilty in 2015 to bribery and fraud charges, admitting that he presided over a massive, decade-long conspiracy involving “scores” of U.S. Navy officials, tens of millions of dollars in fraud and millions of dollars in bribes and lavish gifts, including luxury travel, airline upgrades, five-star hotel accommodations, top-shelf alcohol, the services of prostitutes, Cuban cigars, Kobe beef, and Spanish suckling pigs.
According to admissions made as part of his guilty plea, from October 2009 until July 2012, Breslau was a Captain in the U.S. Navy assigned as Director of Public Affairs for the U.S. Pacific Fleet, headquartered in Pearl Harbor, Hawaii. As part of his duties, Breslau was involved in devising the U.S. Navy’s public affairs communications strategy, and provided public affairs guidance to Pacific Fleet components and other U.S. Navy commands. From August 2012 until July 2014, Breslau was assigned to the Commanding Officer for the Joint Public Affairs Support Element in Norfolk, Virginia, where he was responsible for leading joint crisis communications teams.
Breslau admitted that from March 2012 until September 2013, while serving in the above roles for the U.S. Navy, he provided Leonard Francis with public relations consulting services, including providing advice on how to respond to issues and controversies related to Francis’s ship husbanding business with the U.S. Navy. These included issues related to port visit costs, allegations of malfeasance such as the unauthorized dumping of waste, disputes with competitors, and issues with Pacific Fleet and contracting personnel. During the course of his consulting agreement with Francis, Breslau authored, reviewed, or edited at least 33 separate documents; authored at least 135 emails providing advice to Francis; provided at least 14 instances of “talking points” in advance of meetings between Francis and high ranking U.S. Navy personnel; and “ghostwrote” numerous emails on Francis’s behalf to be transmitted to U.S. Navy personnel. During the course of this consulting agreement, Francis paid Breslau approximately $65,000 without Breslau disclosing the agreement to the U.S. Navy.
Former Master Chief Ricarte David was charged in August 2018, pleaded guilty in September, and was sentenced today on corruption conspiracy charges. As a Master Chief, David was the senior-most enlisted sailor in the U.S. Navy, and as such, he was trusted and respected by officers and enlisted sailors alike.
During this period of the illegal conduct, Master Chief David was assigned various logistics positions with the U.S. Navy’s Seventh Fleet, including with the Fleet Industrial Supply Center in Yokosuka, Japan from June 2001 to July 2004; on the USS Essex, from July 2004 to August 2007; on the USS Kitty Hawk from September 2007 to August 2008; and on the USS George Washington from September 2008 to July 2010. In these positions, David was responsible for ordering and verifying goods and services for the ships on which he served, including from contractors during port calls. Throughout this period, David received from Francis various things of value, including five star hotel rooms during every port visit.
To fuel his half of the corrupt bargain, David repeatedly facilitated fraud on the United States by allowing Francis and GDMA to inflate the husbanding invoices to bill for services never rendered. For example, David instructed Francis to inflate invoices for the USS Essex’s anticipated November 2007 port visit to the Philippines. “Boss, Just in case I’m not on the port visit you can go ahead do your thing[,] put some dollar on the CHT/Water/Trash or Force protection[.] [Y]ou and me are the only one will know[,] just put them on my savings if we can do that . . . more power.” David signed this email “V/r, Bad Boy.” On May 9, 2007, David emailed Francis again reiterating his instruction to inflate the invoices for Francis’s company: “Just in case I’m not on that port visit you can go ahead do your thing put some dollar on the CHT/Water/Trash or Force protection[.] [J]ust you and me are the only one will know[.] [J]ust put them on my savings if we can do that . . . just getting ready for my retirement home in P.I. [M]ore power to you.” In case anything was left in doubt that David was keeping his end of the corrupt bargain, on July 11, 2007, David sent a third email instructing Francis to inflate the invoices during the USS Essex port visit to the Philippines: “Good day to you, just to let you know [I]’m heading to the mighty [USS Kitty Hawk] and the Essex will be there in Subic sometimes in November[.] [T]he one who replace me here in stock control dont have any clue so i’am giving you the permission to do whatever you want to do with the bills…throw extra dollar on the CHT/Water etc… [T]hey w[]ere all [a]utomatic take ups which the ship don’t pay for it… [J]ust don’t forget me please[.] [M]y house in P.I. is not finish yet, ok??
Their corrupt bargain continued as David transitioned to his new position aboard the nuclear aircraft carrier USS Kitty Hawk. On or about May 8, 2008, Francis’s company paid approximately 84,637.00 HKD for hotel reservations at the Grand Hyatt Hong Kong for U.S. Navy personnel assigned to the USS Kitty Hawk including 10,396 HKD for David’s four-night stay in a Harbor View Room.
“Breslau and David selfishly traded on their revered positions of trust in exchange for cash payments and entertainment expenses,” said U.S. Attorney Adam Braverman. “We will vigorously prosecute any public official who puts his own selfish personal interests ahead of the interests of the Navy and our nation.”
“The guilty plea today of U.S. Navy Captain (retired) Jeffrey Breslau and sentencing of U.S. Navy Master Chief Petty Officer (retired) Ricarte David is yet another sad chapter in what is the largest fraud and corruption scandal in the history of the U.S. Navy,” said Dermot F. O’Reilly, Director, Defense Criminal Investigative Service. While the conduct of the vast majority of those in the U.S. Navy is beyond reproach, we will vigorously pursue those individuals who put their own greed above their sworn duty to serve and protect this great nation. The Defense Criminal Investigative Service and our law enforcement partners will continue to investigate any individual, regardless of position, involved in this massive corruption scandal.
"The sentencing of retired Master Chief Petty Officer David and plea by retired Captain Breslau shows service members who defraud the government will be held accountable for their actions," said Naval Criminal Investigative Service Director Andrew Traver. "These service members' actions should serve as a deterrent to anyone trying to defraud the government for personal gain. NCIS will pursue investigations on all cases involving economic crime committed against the Department of the Navy."
So far, 33 defendants have been charged and 22 have pleaded guilty.
The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher, Patrick Hovakimian, and Robert Huie of the Southern District of California and Assistant Chief Brian R. Young of the Fraud Section of the Justice Department’s Criminal Division.
DEFENDANT Case Number: 18-CR-4208-JLS
Captain (retired) Jeffrey Breslau Age: 52 Cumming, Georgia
SUMMARY OF CHARGES
Conflict of Interest, in violation of 18 U.S.C. § 208(a), 216
Maximum Penalty: 5 years in prison, a $250,000 fine
DEFENDANT Case Number: 18-CR-3655-JLS
Master Chief (retired) Ricarte Icmat David Age: 62 Concepcion, Tarlac, Philippines
SUMMARY OF CHARGES
Conspiracy to Commit Honest Services Wire Fraud, in violation of 18 U.S.C. §§ 1349, 1346, 1343
Maximum Penalty: 20 years in prison, a $250,000 fine
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Disbarred Attorney Sentenced to Prison for Defrauding Former Clients and InvestorsRead the Press Release
NEWS RELEASE SUMMARY – November 9, 2018
SAN DIEGO – Clayton Marlow Anderson, Jr., a former attorney based in La Mesa, California before his disbarment in 2015, was sentenced to serve 18 months in federal prison today for defrauding clients and investors. On July 3, 2018, Anderson pleaded guilty to wire fraud and money laundering in connection with his fraudulent investment scheme, known alternatively as the “Clayton M. Anderson Monthly Income Plan,” “Anderson Plan,” or “A-Plan.”
During a hearing this morning before U.S. District Judge Cathy Ann Bencivengo, Anderson was found to have breached his duty as an attorney and a fiduciary by involving his clients in “A-Plan,” a scheme to solicit loans to finance the costs and fees related to construction defect lawsuits brought by his law firm. As a part of his sentence, Anderson was also ordered to pay over $1.5 million in restitution to his victims.
From 2005 until 2014, Anderson solicited unsecured loans from six individuals and paid them high rates of interest between 8% and 13% each year. However, Anderson eventually refashioned these unsecured loans as an “investment” with guaranteed interest, and pitched the investment to his legal clients. In 2012, Anderson won a $1.8 million legal settlement for Jefferson Pointe Professional Corporation (“JPPC”), who had hired Anderson to represent them in a construction defect lawsuit against the builders of their office park in Murrieta, California. Instead of paying his clients their rightful share of the legal settlement as required, Anderson repeatedly solicited them on behalf of “A-Plan Investment Services, Inc.” promising JPPC a 13% annual return on their “investment.” As a part of his guilty plea, Anderson admitted that his pitch to his clients violated his duties as an attorney and that he made multiple false claims, including that A-Plan had over $1 million under management and that A-Plan was the beneficiary of a $4.4 million insurance policy on his life. Anderson admitted his clients invested $800,000 of their legal settlement into “A-Plan” in reliance on his false claims, and that he engaged in other fraudulent conduct toward his clients.
In fact, Anderson was in dire financial straits when he solicited the investment. Anderson admitted making a $182,549.69 bank transfer in order to conceal from his clients the fact that he had already withdrawn their settlement money from his client trust account without their permission. Anderson also admitted that he engaged in a money laundering transaction on January 2, 2013, when he transferred over $30,000 in money derived from his fraud scheme into a retirement account under his control.
In his plea agreement, Anderson admitted that his fraud caused his clients to lose over $600,000, and that the six other A-Plan participants lost over $700,000 in money loaned to him. Anderson also admitted misrepresenting and concealing a variety of information from the six other A-Plan participants, including his law firm’s bankruptcy, his decision to forfeit all outstanding legal settlement money to the bankruptcy trustee, and his suspension and eventual disbarment by the California State Bar in January 2015. Anderson admitted that if A-Plan’s participants had been aware of those facts, they would not have continued to participate in A-Plan, and that his misrepresentations and omissions prevented them from recouping their investments or at the very least mitigating their losses – totaling $1,362,257.50.
“Clayton Anderson put his own financial interests above those of his clients, and he betrayed the trust that they placed in him as their attorney,” said U.S. Attorney Adam L. Braverman. “This prison sentence serves as a warning and demonstrates the commitment of the United States Attorney’s Office to protecting the rights of investors – especially those investing with their own attorney – to candid, truthful information.”
“The FBI vigorously investigates those who breach the attorney-client trust relationship by committing fraud and deceit,” commented FBI Special Agent in Charge John Brown. “Today, Defendant Clayton Anderson, Jr., received an appropriate penalty that will hopefully bring closure for the victims of this egregious fraud.”
“The blatant fraud and deceit carried out by this former attorney is unconscionable,” stated Special Agent in Charge R. Damon Rowe with IRS Criminal Investigation. “The honesty and integrity Americans expect from their attorney must never be compromised, which is why we will continue to work with all levels of law enforcement to root out unscrupulous attorneys and hold them accountable.”
This case was prosecuted by Special Assistant U.S. Attorney Jeffrey D. Hill, and Assistant U.S. Attorney Joseph J. M. Orabona.
DEFENDANT Case Number 18-cr-3075-CAB
Clayton Marlow Anderson, Jr. Mira Loma, CA.
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: 20 years’ imprisonment, $2,724,515 fine, restitution
Money Laundering – Title 18, U.S.C., Section 1957
Maximum penalty: 10 years’ imprisonment, $250,000 fine, restitution
AGENCIES
Federal Bureau of Investigation
Internal Revenue Service, Criminal Investigation
Jury Returns Conviction on Assault on Federal Officer ChargeRead the Press Release
SAN DIEGO, CA – On Tuesday, November 6, 2018, a jury found defendant John Leland Combs guilty of assault on a federal officer, in violation of 18 U.S.C. § 111, and high speed flight from a checkpoint, in violation of 18 U.S.C. § 758.
According to the evidence presented at trial, the assault occurred during the early morning hours of September 2, 2017. U.S. Border Patrol Agent Norberto M. Ribac was assigned to the Brown Field Border Patrol Station All-Terrain Vehicle (ATV) Unit patrolling in the area of Tecate, California. At approximately 5:40 a.m., Agent Ribac discovered northbound shoeprints in the sand approximately 300 yards west of the Tecate Port of Entry. Agent Ribac followed the footprints to Industrial Road, where he discovered a single white male, later identified as Defendant John Leland Combs, standing next to his car (a stolen Hyundai Genesis) and talking on his cell phone, mere yards north of the border fence in Tecate.
Agent Ribac approached Defendant and asked him if there was anything or anybody in the vehicle with him. Defendant stated he was alone and voluntarily opened the trunk of the vehicle for Agent Ribac to inspect. As Agent Ribac attempted to request a registration and records checks, he noticed Defendant walking towards the vehicle’s driver side door. Defendant then entered the vehicle in an attempt to leave the area. When Agent Ribac reached into the vehicle through the driver’s side window to turn the engine off, Combs started to drive the Hyundai Genesis with Agent Ribac’s upper body still inside the vehicle. While Agent Ribac was attempting to free himself from the moving vehicle, the vehicle struck him on his right elbow and on the right side of his head, breaking his ATV helmet.
In an attempt to flee the State Route 94 Checkpoint, Combs hit speeds over 70 mph while swerving in and out of traffic on a windy two-lane highway. As Combs veered over the cone lane and into the eastbound lane of the checkpoint, video footage showed the agents successfully deploying spike strips. As one of the agents threw the spike in front of defendant’s car, Combs delivered an obscene gesture before eventually losing control of the car and swerving into a residential driveway. He attempted to flee on foot, but was quickly arrested.
“This office will vigorously prosecute those who assault dedicated U.S. Border Patrol agents and endanger the public with dangerous escape maneuvers,” said U.S. Attorney Adam L. Braverman. “We will not tolerate disrespect for law enforcement and cavalier disregard for community safety.”
“A Border Patrol agent was assaulted by this defendant, who then placed multiple innocent drivers and other agents at serious risk by driving recklessly through east San Diego County,” said Chief Patrol Agent Rodney S. Scott. “I’m proud of my agents who did not allow this criminal to escape arrest, and I am grateful to the United States Attorney’s Office for their hard work and dedication to bring him to justice.”
Combs will be sentenced on February 8, 2019 by U.S. District Court Judge Cathy Bencivengo.
The case was prosecuted by Assistant United States Attorneys Mark Conover, Ryan Sausedo and Katherine McGrath.
DEFENDANT Case No. 17cr3026-CAB
John Leland Combs
AGENCIES
Department of Homeland Security, Border Patrol Intelligence
U.S. Border Patrol
Utah Man Pleads Guilty to Denial-of-Service Computer Hacking AttacksRead the Press Release
NEWS RELEASE SUMMARY – November 6, 2018
SAN DIEGO – Austin Thompson, a Utah resident, pleaded guilty today in federal court in San Diego, admitting that he carried out a series of denial-of-service (“DoS”) computer hacking attacks against multiple victims between 2013 and 2014.
A denial-of-service (DoS) attack occurs when legitimate users are unable to access information systems, devices, or other network resources due to the actions of a malicious cyber threat actor. In such attacks, the hacker floods the targeted host or network with traffic until the target cannot respond or simply crashes, preventing access for legitimate purposes. According to the plea agreement, between December 2013 and January 2014, Thompson’s attacks, which flooded his victims’ servers with enough internet traffic to take them offline, were directed mainly at online gaming companies and servers, including then San Diego-based Sony Online Entertainment. Thompson typically used the Twitter account @DerpTrolling to announce that an attack was imminent and then posted screenshots or other photos showing that victims’ servers had been taken down after the attack. The attacks took down game servers and related computers around the world, often for hours at a time. According to the plea agreement, Thompson’s actions caused at least $95,000 in damages.
“Denial-of-service attacks cost businesses millions of dollars annually,” said U.S. Attorney Adam Braverman. “We are committed to finding and prosecuting those who disrupt businesses, often for nothing more than ego.”
"In today's world, cyber crime is an immense threat that affects private, commercial, and government sectors alike," said FBI Special Agent in Charge John Brown. "The FBI's capacity to respond to cyber incidents is enhanced through collaboration with affected industries and partnerships in the community to prevent and combat these threats. Together, we will thwart those cyber criminals who target our communities' businesses and infrastructure."
Sentencing is set before United States District Judge Jeffrey Miller on March 1, 2019 at 9:00 a.m.
The case, which is being prosecuted by Assistant U.S. Attorneys Benjamin Katz and John Parmley, arose out of an investigation by FBI’s San Diego Field Office.
DEFENDANT Case Number 18cr4775JM
Austin Thompson Age: 23
SUMMARY OF CHARGES
Damage to a Protected Computer, 18 U.S.C. § 1030(a)(5)(A)
Maximum penalty: 10 years prison, $250,000 fine, 3 years supervised release
AGENCY
Federal Bureau of Investigation – San Diego Field Office
U.S. Air Force Office of Special Investigations
Jury Returns Conviction on Felony Assault on Federal Officer ChargesRead the Press Release
SAN DIEGO, CA – On Wednesday, October 31, 2018, a jury found defendant Carlos Miranda-Alonso guilty of felony assault on a federal officer, in violation of 18 U.S.C. § 111(a)(1), and felony assault on a federal officer with a dangerous weapon, in violation of 18 U.S.C. § 111(b). The defendant separately pleaded guilty to being an alien who knowingly eluded examination and inspection by immigration officers, in violation of 8 U.S.C. § 1325(a)(2), a misdemeanor.
According to the evidence presented at trial, the defendant illegally entered the United States on May 10, 2018 by crawling under the International Boundary Fence. He then spent several hours making his way north before a U.S. Border Patrol Agent stopped the defendant while he was walking out of a protected wildlife estuary and onto a walking path near the Tijuana Estuary Visitor’s Center in Imperial Beach, California.
When the Border Patrol Agent attempted to handcuff the defendant, the defendant swung his arm, hitting the Agent and breaking his grasp. The defendant then ran several hundred yards into the estuary and for the next several minutes resisted the Agent’s attempts to capture him by striking the Agent’s arms. When the Agent managed to get the defendant to the ground, the defendant picked up a section of 4x4 wooden fence post, stood up, and swung it at the Agent. The Defendant dropped the post after the Agent drew his firearm; no shots were fired. After approximately 15 minutes, the defendant was apprehended by several other Border Patrol Agents who had arrived on the scene to assist.
“United States Border Patrol agents put their lives on the line every single day to protect our borders,” said U.S. Attorney Adam L. Braverman. “This office will vigorously pursue justice against those who engage in violence against agents carrying out that critical mission.”
“The safety and well-being of the federal law enforcement officers protecting our nation’s borders are a priority for the Federal Bureau of Investigation,” said John Brown, FBI Special Agent in Charge. “As shown in today’s conviction, we will fully investigate and bring to justice those who assault officers while carrying out their daily duties in order to keep our country safe.”
“I would like to thank the U.S. Attorney’s Office and the Federal Bureau of Investigation for ensuring acts of violent aggression against Border Patrol Agents will not be tolerated. I am also grateful for the jury’s just decision finding this defendant guilty,” said Chief Patrol Agent Rodney S. Scott. “Assault a U.S. law enforcement officer: expect to be held accountable.”
The sentencing is scheduled for January 22, 2019 at 9:00 a.m. in front of Judge William Q. Hayes.
Northrop Grumman Systems Corporation to Pay $27.45 Million to Settle False Claims Act AllegationsRead the Press Release
The Justice Department announced today that Northrop Grumman Systems Corporation (NGSC) has agreed to settle civil allegations that it violated the False Claims Act (FCA), 31 U.S.C. §3729, by overstating the number of hours its employees worked on two battlefield communications contracts with the United States Air Force. Under the settlement, NGSC, headquartered in Falls Church, Virginia, will make a payment of $25.8 million, which, combined with earlier repayments, will result in a civil recovery of approximately $27.45 million.
“Contractors that knowingly inflate their bills to the government will face serious consequences,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “This settlement demonstrates, once again, that we will not tolerate those who falsely charge the armed forces or any agency of the United States to illegally profit at the expense of the American taxpayer.”
“Federal contracts are not a license to steal from the U.S. Treasury,” said U.S Attorney Adam Braverman. “DOJ is firmly committed to vigilantly weeding out abuse and will swiftly pursue all available remedies when egregious fraud occurs.”
“Air Force OSI’s Office of Procurement Fraud is dedicated to protecting the taxpayer’s interests worldwide while safeguarding the needs of the warfighter. This investigation is a testament to AFOSI’s global reach, and to our partnerships with DCIS and the FBI which allowed us to meticulously unravel this international conspiracy to defraud the U.S. Air Force,” said Jason T. Hein, Special Agent in Charge of the Air Force OSI Office of Procurement Fraud, Detachment 6.
“We are committed to ensuring the funds of the American people are used for their intended purpose,” stated John Brown, Special Agent in Charge of the San Diego Field Office - Federal Bureau of Investigation. “This is another example of the incredible partnerships between the FBI and our Department of Defense counterparts. Together, uncovering this immense fraud against the government and returning the funds to the American taxpayer is vitally important to ensuring our military receives the honest services they are due.”
The Air Force entered into two contracts with NGSC for battlefield communications services: the Battlefield Airborne Communications Node contract and the Dynamic Re-tasking Capability contract. Today’s settlement resolves allegations that NGSC billed the Air Force for labor hours purportedly incurred between July 1, 2010, and December 31, 2013, by individuals stationed in the Middle East who had not actually worked the hours claimed. NGSC also entered into a separate agreement with the Criminal Division of the U.S. Attorney’s Office for the Southern District of California related to these contracts under which it has agreed to forfeit an additional $4.2 million.
The civil settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of California, the Defense Contract Audit Agency, the Air Force Office of Special Investigations, the Defense Criminal Investigative Service, and the Air Force Materiel Command Law Office Fraud Division.
Except for the conduct admitted in connection with the criminal agreement, the claims resolved by the civil agreement are allegations only, and there has been no determination of civil liability
Northrop Grumman Subsidiary Agrees to Pay $31.65 Million for Overbilling U.S. Air Force in Civil and Criminal SettlementsRead the Press Release
NEWS RELEASE SUMMARY – November 2, 2018
SAN DIEGO – Northrop Grumman Systems Corporation (“NGSC”), a subsidiary of the Northrop Grumman Corporation, with offices in San Diego, California, agreed today to pay a total of $31.65 million to settle civil and criminal investigations into fraud arising out of its Battlefield Airborne Communications Node (“BACN”) and Dynamic Re-tasking Capability (“DRC”) contracts with the United States Air Force. NGSC agreed to pay $27.45 million to settle civil allegations that it violated the False Claims Act by overstating the number of hours its employees worked on the BACN and DRC contracts with the United States Air Force. Additionally, NGSC agreed to forfeit $4.2 million in a separate agreement to resolve a criminal investigation into fraudulent billing on the BACN contract. In exchange for admitting its employees’ misconduct, making full restitution, and agreeing to cooperate in the ongoing criminal investigation, no criminal charges will be filed against NGSC.
(see the agreement HERE )
In the agreement resolving the criminal investigation of NGSC, the company admitted that its employees deployed to an air base in the Middle East defrauded the Air Force by overbilling time charged to the BACN contract. Specifically, from January 2011 to October 2013, NGSC employees charged exactly 12 or 13.5 hours per day, seven days a week, despite the fact that the employees were not working those hours. NGSC admitted that its employees billed time to the BACN contract when its employees were not working and engaged in leisure activities, such as golfing, skiing, visiting local amusement parks, going out to eat or drink, shopping, and enjoying various amenities at the five-star hotels where the employees were housed.
By inflating their time, the employees working on the BACN contract personally profited and were paid thousands of dollars that they did not earn. In an email, one NGSC employee summed up the billing practices by saying that they “work[ed] about 6-8 hours and charge[d] 13.” NGSC admitted that its employees working on the BACN contract overbilled the United States by more than $5 million at one site alone.
“Federal contracts are not a license to steal from the U.S. Treasury,” said U.S. Attorney Adam Braverman. “DOJ is firmly committed to vigilantly weeding out abuse and will swiftly pursue all available remedies when egregious fraud occurs.”
“Air Force OSI’s Office of Procurement Fraud is dedicated to protecting the taxpayer’s interests worldwide while safeguarding the needs of the warfighter. This investigation is a testament to AFOSI’s global reach, and to our partnerships with DCIS and the FBI which allowed us to meticulously unravel this international conspiracy to defraud the U.S. Air Force,” stated Jason T. Hein, Special Agent in Charge of the Air Force OSI Office of Procurement Fraud, Detachment 6.
“We are committed to ensuring the funds of the American people are used for their intended purpose,” stated John Brown, Special Agent in Charge of the San Diego Field Office - Federal Bureau of Investigation. “This is another example of the incredible partnerships between the FBI and our Department of Defense counterparts. Together, uncovering this immense fraud against the government and returning the funds to the American taxpayer is vitally important to ensuring our military receives the honest services they are due.”
Chris Hendrickson, Special Agent in Charge of the Western Field Office, Defense Criminal Investigative Service, said: “This settlement demonstrates how defense contractors will be held accountable for making false claims to the United States. DCIS is committed to working with its law enforcement partners and the Department of Justice to aggressively investigate such matters, and the recovered funds can now be properly used to support the men and women of our Armed Forces.”
Except for the conduct admitted in connection with the criminal agreement, the claims resolved by the civil agreement are allegations only, and there has been no determination of civil liability.
The civil investigation was handled by Assistant U.S. Attorneys Joseph Price and Douglas Keehn and Benjamin C. Wei, Senior Trial Counsel, Fraud Section, Civil Division, Department of Justice.
The criminal investigation was handled by Assistant U.S. Attorneys Michelle L. Wasserman, Billy Joe McLain, Mark W. Pletcher, and Phillip L.B. Halpern.
AGENCIES
Air Force Office of Special Investigations
Defense Criminal Investigative Service
Federal Bureau of Investigation
Defense Contract Audit Agency
Air Force Materiel Command Law Office Fraud Division
Two San Diego men plead guilty to robbery spree involving 10 Metro PCS stores and a Subway restaurantRead the Press Release
For Further Information, Contact:
Assistant U. S. Attorneys Stephen H. Wong (619) 546-9464 and
Lara A. Stingley (619) 546-8403Carlos Adolfo Soto and Justin Wayne Caldwell pleaded guilty today in federal court to robbing 10 Metro PCS stores and a Subway restaurant in January and February of 2017. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
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 beginning on January 25, 2017 and ending on February 21, 2017. As described in the plea agreements, the robberies targeted Metro PCS stores in and around San Diego County. In a typical robbery, Soto would enter the store holding a weapon such as a machete, tazer, or pellet gun that resembled a firearm. Soto would point his weapon at store clerks and demand cellular phones and cash. Caldwell typically waited outside the store in his vehicle, 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, the robbers 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, kneeling down on his hands and feet, while they loaded a backpack with cellular phones. The robbers then ordered the clerk to open the cash register.
Public filings describe how Special Agents with the Federal Bureau of Investigation 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 eleven robberies involved Metro PCS cell phone stores and in each the robbers used similar methods, weapons, and disguises. Investigators identified the robbers after one of them registered a cell phone taken 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.
“After striking fear in the hearts of San Diego-area store clerks, these serial robbers were apprehended and charged due to the persistent efforts of dedicated local and federal law enforcement officers,” said U.S. Attorney Adam Braverman. “Thanks to these efforts our community can rest easier, knowing that the culprits have been brought to justice.”
FBI Special Agent in Charge John Brown stated, “The FBI is committed to working side-by-side with our local partners in these criminal series cases that involve violence, fear, and intimidation in our community. With today’s convictions, this violent spree of robberies has come to an end.”
Soto and Caldwell have been in custody since February 21, 2017, and are set for sentencing on January 22, 2019 before U.S. District Court Judge Thomas J. Whelan.
Case Number 17-CR-558-W
Defendants
Carlos Adolfo Soto
Justin Wayne Caldwell
Summary of Charges
Hobbs Act Robbery, 18 U.S.C. § 1951
Maximum penalty: 20 years’ imprisonment, $250,000 fine, 3 years’ supervised release
Investigating Agencies
Federal Bureau of Investigation
San Diego Police Department
San Diego Sherriff’s Department
Guatemalan Drug Trafficker Who Coordinated Maritime Cocaine Loads on High Seas Pleads GuiltyRead the Press Release
For Further Information, Contact:
Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287SAN DIEGO – Defendant Luis Carlos Melgar-Morales, aka Aquaman, pled guilty today in a San Diego federal district court to international conspiracy to distribute over 10,000 kilograms of cocaine, knowing that the cocaine would be distributed in the United States, in violation of Title 21, United States Code, Sections 959, 960 and 963. He also admitted to criminal forfeiture in the amount of $1,000,000.
Melgar-Morales, 28, admitted engaging in a two-year conspiracy to import and distribute cocaine in the United States and conceded he was a manager and leader of the responsible drug trafficking organization. In furtherance of the charged conspiracy, and at direction of Willian Lemus, Melgar-Morales arranged for multiple go-fast vessels to travel in international waters on many occasions to transport bulk cocaine from Colombia and Ecuador, known source countries for the cocaine, to Costa Rica and Guatemala, and from there the drugs would be transported to Mexico and smuggled into the United States.
Melgar-Morales also facilitated and coordinated the points of travel of the cocaine-laden go fast vessels as they met with refueling vessels on the high seas and communicated to the transportation network about the vessels’ status as they journeyed north. In addition, he facilitated and coordinated the successful delivery of cocaine vessels from Columbia and Ecuador to Costa Rica and Guatemala.
Melgar-Morales admitted that the international conspiracy involved the distribution of over 10,000 kilograms of cocaine during the two-year period from January 2016 to January 2018. Melgar-Morales was also involved in multiple events that resulted in law enforcement seizures including the following: May 19, 2017 (810 kilograms of cocaine); May 23, 2017 (980 kilograms of cocaine); November 9, 2017 (750 kilograms of cocaine); December 16, 2017 (1,082 kilograms of cocaine); and January 27, 2018 (601 kilograms of cocaine).
Homeland Security Investigation (HSI) Special Agents and Customs and Border Protection officers arrested Melgar-Morales at the Los Angeles airport on January 26, 2018, as he was returning to Guatemala, where he resided. Melgar-Morales’ associate, Willian Lemus-Lara, charged in a separate indictment, was arrested in Guatemala pursuant to an outstanding arrest warrant from the Southern District of California in June 2018, identified in United States v. Willian Lemus-Lara, 18CR0390DMS. Willian Lemus-Lara is currently in extradition proceedings.
“Federal law enforcement officials worked together in three countries to successfully disrupt a dangerous drug trafficking ring that sought to smuggle 10,000 kilos of cocaine (with a retail value of $600 million) into the U.S.,” said U.S. Attorney Adam Braverman. “Through effective partnerships and excellent intelligence gathering tools, we intercepted significant loads of this highly addictive stimulant, stripped traffickers of drug profits, and helped to safeguard our communities.”
“Today’s guilty plea highlights the success of collaborative efforts by HSI San Diego, DEA, Customs and Border Protection and other agency partners, as well as our HSI counterparts overseas. This joint effort has resulted in significant seizures of narcotics, firearms and other contraband and has helped law enforcement identify high ranking targets of this criminal organization,” said David Shaw, Special Agent in Charge for HSI San Diego. “HSI will remain committed in our investigative efforts to bring additional members to justice.”
“This case is an excellent example of the whole government approach set forth by the OCDETF Task Forces throughout our country,” said Drug Enforcement Administration Acting Special Agent in Charge Nathan Jones. “It is a testament to the outstanding men and women in federal law enforcement who work tirelessly day in and day out to identify, target, and bring to justice the drug trafficking and transnational organized crime groups that seek to import illicit drugs into the United States and undermine the very fabric of our nation.”
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.
Melgar-Morales’ sentencing date is scheduled for January 18, 2019 at 9:00 a.m. before the Honorable Dana M. Sabraw, United States District Court Judge.
DEFENDANT Case Number 18CR0391DMS
Luis Carlos Melgar-Morales, aka Aquaman Age: 28 Guatemala
SUMMARY OF CHARGES
International Conspiracy To Distribute 10,000 kilograms of cocaine into the United States
Maximum penalty: 10 years minimum to life; $1,000,000 fine; supervised release; $100 special assessment)
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)
Brothers Operating Import/Export Business Plead Guilty to International Drug TraffickingRead the Press Release
For Further Information, Contact:
Assistant U. S. Attorney Benjamin Katz (619) 546-9604SAN DIEGO –Nathan Dulley and Andrew Dulley, brothers from Los Angeles, California, pleaded guilty today for their role in trafficking drugs for former USC football player Owen Hanson’s “ODOG” Enterprise, an international drug trafficking, money laundering and illegal gambling syndicate that operated in the United States, Central and South America, and Australia from 2012 to 2016.
According to court records, the ODOG Enterprise trafficked thousands of kilograms of cocaine, heroin, methamphetamine, MDMA (also known as “ecstasy”), and other drugs, routinely distributing controlled substances at wholesale and retail levels around the world. The Dulley brothers, who imported and exported fine chocolate, played an integral role in the ODOG Enterprise by shipping large quantities of cocaine from the United States to Australia. Upon receipt of cocaine from Hanson or his associates – usually in quantities of tens of kilograms or more – the Dulleys would intermix and package the cocaine with legitimate merchandise, so as to disguise the true contents from the shipper and customs authorities. Using their established import/export routes, the Dulleys would then send the cocaine to Australia, where it was distributed and sold by other members of the ODOG Enterprise.
“Transnational racketeering organizations represent a clear and present danger to the safety and security of our communities. Those who assist such criminal enterprises by allowing the corruption of their otherwise legitimate businesses will be held accountable for the harm wrought on our communities,” said U.S. Attorney Adam Braverman.
So far, all 22 other defendants charged in connection with this case have pleaded guilty, including:
- Owen Hanson, the founder of the ODOG Enterprise. Hanson was sentenced to more than 21 years in prison and ordered to pay a criminal forfeiture in the amount of $5,000,000, including $100,000 in gold and silver coins, a Porsche Panamera, two Range Rovers, luxury watches, homes in Costa Rica, Peru, and Cabo San Lucas, a sailboat, and interests in several businesses.
- Giovanni (“Tank”) Brandolino, Hanson’s second in command. Brandolino was sentenced in February 2018 to 87 months in prison, followed by three years of supervised release.
- Luke Fairfield, a San Diego based Certified Public Accountant who assisted Hanson with laundering the proceeds of his various illegal endeavors by setting up shell corporations and advising members of the Enterprise on how to structure bank transactions to avoid law enforcement. On October 2, 2018, Fairfield was sentenced to 21 months in prison.
- Derek Loville, a former professional football player, who pleaded guilty to distributing retail quantities of drugs for the ODOG Enterprise in Arizona. In July 2017, Loville was sentenced to 15 months in prison and a $5,000 fine.
- Daniel Portley-Hanks, a Los Angeles-based private investigator who assisted Hanson with tracking down delinquent gamblers and other individuals who owed the enterprise money. Portley-Hanks pleaded guilty and was sentenced to 16 months in prison.
- Jack Rissell, an “enforcer” who, in one instance, travelled from Southern California to Minneapolis to attack a delinquent gambler in front of his family was sentenced to 24 months in prison.
Sentencing for both Nathan Dulley and Andrew Dulley is set for January 22, 2019, before District Judge William Q. Hayes.
The case arose out of a joint investigation by FBI, DEA, and the New South Wales (Australia) Police Force in conjunction with the New South Wales Crime Commission. Assistant U.S. Attorneys Andrew P. Young, Benjamin Katz and Mark W. Pletcher are prosecuting the case.
DEFENDANT Case Number: 18CR4207-WQH
Nathan Dulley Age: 36
Andrew Dulley Age: 34
SUMMARY OF CHARGES
Count 1
Conspiracy to Distribute Cocaine, 21 U.S.C. § 846, 841(a)(1)
Maximum penalty: 20 years’ prison, $1,000,000 fine, lifetime of supervised release.
AGENCY
Federal Bureau of Investigation – San Diego Field Office
U.S. Drug Enforcement Agency
Internal Revenue Service – San Diego
Australian Crime Commission
New South Wales Police Force
New South Wales Crime Commission
Chinese Intelligence Officers and Their Recruited Hackers and Insiders Conspired to Steal Sensitive Commercial Aviation and Technological Data for YearsRead the Press Release
FOR IMMEDIATE RELEASE
TUESDAY, OCTOBER 30, 2018
WWW.JUSTICE.GOV
Chinese Intelligence Officers and Their Recruited Hackers and Insiders Conspired to Steal Sensitive Commercial Aviation and Technological Data for Years
Chinese intelligence officers and those working under their direction, which included hackers and co-opted company insiders, conducted or otherwise enabled repeated intrusions into private companies’ computer systems in the United States and abroad for over five years. The conspirators’ ultimate goal was to steal, among other data, intellectual property and confidential business information, including information related to a turbofan engine used in commercial airliners.
The charged intelligence officers, Zha Rong and Chai Meng, and other co-conspirators, worked for the Jiangsu Province Ministry of State Security (“JSSD”), headquartered in Nanjing, which is a provincial foreign intelligence arm of the People’s Republic of China’s Ministry of State Security (“MSS”). The MSS, and by extension the JSSD, is primarily responsible for domestic counter-intelligence, non-military foreign intelligence, and aspects of political and domestic security.
From at least January 2010 to May 2015, JSSD intelligence officers and their team of hackers, including Zhang Zhang-Gui, Liu Chunliang, Gao Hong Kun, Zhuang Xiaowei, and Ma Zhiqi, focused on the theft of technology underlying a turbofan engine used in U.S. and European commercial airliners. This engine was being developed through a partnership between a French aerospace manufacturer with an office in Suzhou, Jiangsu province, China, and a company based in the United States. Members of the conspiracy, assisted and enabled by JSSD-recruited insiders Gu Gen and Tian Xi, hacked the French aerospace manufacturer. The hackers also conducted intrusions into other companies that manufactured parts for the turbofan jet engine, including aerospace companies based in Arizona, Massachusetts and Oregon. At the time of the intrusions, a Chinese state-owned aerospace company was working to develop a comparable engine for use in commercial aircraft manufactured in China and elsewhere.
Defendant Zhang Zhang-Gui is also charged, along with Chinese national Li Xiao, in a separate hacking conspiracy, which asserts that Zhang Zhang-Gui and Li Xiao leveraged the JSSD-directed conspiracy’s intrusions, including the hack of a San Diego-based technology company, for their own criminal ends.
“For the third time since only September, the National Security Division, with its US Attorney partners, has brought charges against Chinese intelligence officers from the JSSD and those working at their direction and control for stealing American intellectual property,” said John C. Demers, Assistant Attorney General for National Security. “This is just the beginning. Together with our federal partners, we will redouble our efforts to safeguard America’s ingenuity and investment.”
“State-sponsored hacking is a direct threat to our national security. This action is yet another example of criminal efforts by the MSS to facilitate the theft of private data for China’s commercial gain,” said U.S. Attorney Adam Braverman. “The concerted effort to steal, rather than simply purchase, commercially available products should offend every company that invests talent, energy, and shareholder money into the development of products.”
“The threat posed by Chinese government-sponsored hacking activity is real and relentless,” said John Brown, FBI Special Agent in Charge of the San Diego Field Office. “Today, the Federal Bureau of Investigation, with the assistance of our private sector, international and U.S. government partners, is sending a strong message to the Chinese government and other foreign governments involved in hacking activities. We are working together to vigorously investigate and hold hackers accountable regardless of their attempts to hide their illicit activities and identities.”
On October 10, the Department of Justice announced that a JSSD intelligence officer was extradited to the Southern District of Ohio, on charges that he attempted to steal trade secrets related to jet aircraft engines, and in September, in the Northern District of Illinois, a grand jury indicted a U.S. Army recruit who is accused of working as an agent of a JSSD intelligence officer, without notification to the Attorney General.
As the indictment in the Southern District of California describes in detail, China’s JSSD intelligence officers and hackers working at their direction masterminded a series of intrusions in order to facilitate intrusions and steal non-public commercial and other data. The hackers used a range of techniques, including spear phishing, sowing multiple different strains of malware into company computer systems, using the victim companies’ own websites as “watering holes” to compromise website visitors’ computers, and domain hijacking through the compromise of domain registrars.
The first alleged hack began no later January 8, 2010, when members of the conspiracy infiltrated Capstone Turbine, a Los-Angeles-based gas turbine manufacturer, in order to steal data and use the Capstone Turbine website as a “watering hole.”
China’s intelligence service also sought, repeatedly, to hack into a San Diego-based technology company from at least August 7, 2012 through January 15, 2014, in order to similarly steal commercial information and use its website as a “watering hole.”
Chinese actors used not only hacking methods to conduct computer intrusions and steal commercial information, they also coopted victim company employees. From at least November 2013 through February 2014, two Chinese nationals working at the direction of the JSSD, Tian Xi and Gu Gen, were employed in the French aerospace company’s Suzhou office. On January 25, 2014, after receiving malware from an identified JSSD officer acting as his handler, Tian infected one of the French company’s computers with malware at the JSSD officer’s direction. One month later, on February 26, 2014, Gu, the French company’s head of Information Technology and Security in Suzhou, warned the conspirators when foreign law enforcement notified the company of the existence of malware on company systems. That same day, leveraging that tip-off, conspirators Chai Meng and Liu Chunliang tried to minimize JSSD’s exposure by causing the deletion of the domain linking the malware to an account controlled by members of the conspiracy.
The group’s hacking attempts continued through at least May of 2015, when an Oregon-based company, which, like many of the other targeted companies, built parts for the turbofan jet engine used in commercial airliners, identified and removed the conspiracy’s malware from its computer systems.
Count Two of the indictment charges a separate conspiracy to hack computers in which Zhang Zhang-Gui, a defendant charged in Count One, supplied his co-defendant and friend, Li Xiao, with variants of the malware that had been developed and deployed by hackers working at the direction of the JSSD on the hack into Capstone Turbine. Using malware supplied by Zhang, as well as other malware, Li launched repeated intrusions that targeted a San Diego-based computer technology company for more than a year and a half. These intrusions caused thousands of dollars of damage to protected computers.
Count Three of the indictment charges Zhang Zhang-Gui with the substantive offense of computer hacking a San Diego technology company, which was one of the targets of the conspiracies alleged in Counts One and Two.
***
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
The FBI, led by the San Diego Field Office, conducted the investigation that resulted in charges announced today. This case is being prosecuted by Alexandra Foster and Sabrina Fève of the United States Attorney’s Office for the Southern District of California and Jason McCullough of the National Security Division’s Counterintelligence and Export Control Section. The Criminal Division’s Office of International Affairs also provided assistance in this matter, and the Department appreciates the cooperation and assistance provided by France’s General Directorate for Internal Security (DGSI) and the Cybercrime Section of the Paris Prosecutor’s Office during the investigation of this matter.
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13CR3132-H
San Diego Jury Convicts Child PredatorRead the Press Release
NEWS RELEASE SUMMARY – October 25, 2018
SAN DIEGO, CA – On Thursday, October 25, 2018 a federal jury in San Diego, California, found Isaiah Smallwood-Jackson guilty of production of child pornography, in violation of 18 U.S.C. § 2251(a) and enticement of a minor, in violation of 18 U.S.C. § 2422(b), announced United States Attorney Adam Braverman. The convictions trigger mandatory minimum sentences of 15 and 10 years, respectively.
According to evidence presented at trial, Smallwood-Jackson began communicating with a 14-year-old girl, using the social media application “Spotafriend.” The victim’s profile listed her true age of 14. Smallwood-Jackson admitted during chats with the victim that he was 21 years old and did not care that the victim was a minor. Communicating over social media, Smallwood-Jackson discussed sexual acts he wanted to perform with the minor. He convinced her to produce and send him sexually explicit pictures and to provide her address. The minor repeatedly told Smallwood-Jackson that she was not sure she wanted to meet with him, but he told her to “take a leap of faith.” He then traveled to her home, convinced her to come outside, and engaged in sexual activity with her. In texts afterward, Smallwood-Jackson apologized for hurting the minor victim. She disclosed the event to her sister, who reported it to law enforcement.
“Internet predators beware: the Department of Justice is committed to striking back against repugnant crimes against innocent children," said U.S. Attorney Adam Braverman. “No child should ever have to endure sexual abuse. The United States will utilize every tool available to it to hold these predators accountable.”
Defendant is set to be sentenced on January 28, 2019, at 9am before the Honorable Cynthia Bashant.
AGENCIES
This case was investigated by the Oceanside Police Department. The FBI then pursued federal charges through filing of a federal criminal complaint.
Bitcoin Dealer Pleads Guilty & Agrees to Forfeit Ill-Gotten GainsRead the Press Release
NEWS RELEASE SUMMARY – October 29, 2018
SAN DIEGO – Jacob Burrell Campos pled guilty today in federal court to 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 from January 2015 to April of 2016.
According to the terms of his plea agreement, Burrell admitted to operating 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% 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. currency, which he kept in Mexico, with Joseph Castillo, a San Diego-based precious metals dealer. Between late 2016 and early 2018, Burrell and others imported over $1 million in U.S. currency on almost a daily basis. Burrell admitted that they did this in amounts slightly below the $10,000 reporting requirement. Castillo pled guilty to making a false statement on his federal tax returns, and is awaiting sentencing on December 13, 2018.
According to his plea agreement, Burrell agreed to forfeit to the United States a total of $823,357.00.
“Unlicensed money transmitting businesses, especially those operating at or near the border, pose a serious threat to the integrity of the US banking system, and provide an ‘open door’ for criminals to utilize such businesses to launder the proceeds of their illicit activities,” said U.S. Attorney Adam Braverman. “The Department of Justice will continue to investigate and prosecute all individuals and businesses that seek to evade the licensing and anti-money laundering requirements under federal law.”
Burrell will be sentenced on February 11, 2019, and faces a maximum of five years’imprisonment.
DEFENDANT Case Number 18CR3554-H
Jacob Burrell-Campos Age: 21 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
Vista Man Sentenced for Drug Trafficking and Firearms OffensesRead the Press Release
NEWS RELEASE SUMMARY – October 26, 2018
SAN DIEGO – Arash Sean Soltani of Vista was sentenced yesterday to 15 years in prison, followed by 5 years of supervised release, for possession of methamphetamine and marijuana with intent to distribute and for possession of firearm in furtherance of his drug trafficking activities, by the Honorable Gonzalo P. Curiel, United States District Judge, Southern District of California.
At the time of his guilty plea, Soltani admitted that he possessed four AR15-style rifles, a fully automatic handgun, and several thousand rounds of ammunition to protect his supply of more than half a pound of methamphetamine and 136 marijuana plants and to further his drug trafficking activities. According to court records, in addition to the firearms, ammunition, methamphetamine and marijuana plants, law enforcement officers also seized marijuana oil extraction equipment, harvested and concentrated cannabis, cannabis oil and a scale with marijuana residue during a search of Soltani’s two homes in Vista.
“Fighting violent crime is a top priority for our office,” said United States Attorney Adam Braverman. “San Diego has the lowest crime rate in 49 years and the lowest violent crime rate of all major cities in the nation last year. We will continue to prosecute cases like this to keep San Diego safe.”
“ATF recognizes the role firearms play in violent crimes and focuses on armed violent offenders and career criminals, narcotics traffickers, violent gang activity, and domestic and international arms trafficker’s” said Bureau of Alcohol, Tobacco, Firearms and Explosives Los Angeles’ Special Agent in Charge Bill McMullan. “ATF will continue to target, investigate and recommend for prosecution these offenders to reduce the level of violent crime and to enhance public safety.”
DEFENDANT Case Number 17CR0843-GPC
Arash Sean Soltani Age: 45 Vista, CA
SUMMARY OF CHARGES
Count 1, Possession of Methamphetamine and Marijuana with Intent to Distribute, in violation of Title 21, U.S.C. 841 (A)(1)
Maximum penalty: Life in prison and $10 million fine; mandatory minimum 10 years in prison
Count 2, Possession of Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, U.S.C. 924 (c) (1) (A) (i)
Maximum Penalty: Life in prison and $250,000 fine; mandatory minimum five years in prison
AGENCY
Bureau of Alcohol Tobacco Firearms and Explosives
San Diego County Sheriff’s 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 to 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.
Former U.S. Navy Commander Sentenced for Bribery Conspiracy with Foreign Defense Contractor in Massive U.S. Navy Corruption and Fraud CaseRead the Press Release
NEWS RELEASE SUMMARY – October 19, 2018
SAN DIEGO – Former U.S. Navy Commander Troy Amundson was sentenced today to 30 months in prison, followed by 3 years of supervised release, a $10,000 fine and $21,625.60 in restitution for federal bribery conspiracy charges by the Honorable Janis L. Sammartino of the U.S. District Court for the Southern District of California. Amundson is the latest U.S. Navy official to plead guilty and be sentenced in the wide-ranging corruption and fraud investigation involving foreign defense contractor Leonard Glenn Francis and his Singapore-based company, Glenn Defense Marine Asia (GDMA).
Amundson, 50, of Ramsey, MN earlier this year pleaded guilty to one count of conspiracy to commit bribery, admitting that he conspired with Francis and others to receive things of value, including entertainment expenses and the services of prostitutes, in exchange for taking official acts for the benefit of GDMA and violating his official duties to the United States Navy. Francis pleaded guilty in 2015 to bribery and fraud charges, admitting that he presided over a massive, decade-long conspiracy involving “scores” of U.S. Navy officials, tens of millions of dollars in fraud and millions of dollars in bribes and gifts – from cash, prostitutes and luxury travel to Cuban cigars, Kobe beef and Spanish suckling pigs.
According to admissions made as part of his guilty plea, from May 2005 to May 2013, Amundson served as the officer responsible for coordinating the U.S. Navy’s joint military exercises with its foreign navy counterparts. As part of his duties, Amundson was responsible for building and maintaining cooperative relationships with the U.S. Navy’s foreign navy exercise partners.
Amundson admitted that from September 2012 through October 2013, Francis paid for dinner, drinks, transportation, other entertainment expenses, and the services of prostitutes for Amundson and other U.S. Navy officers. In one instance, Amundson wrote to Francis from a private e-mail account, arranging to provide Francis with internal, proprietary U.S. Navy information: “Handoff?... [M]y [friend], your program is awesome. I [Amundson] am a small dog just trying to get a bone… however I am very happy with my small program. I still need 5 minutes to pass some data when we can meet up. Cannot print.” That night, Francis arranged the services of several prostitutes from Mongolia for Amundson.
Having passed U.S. Navy ship schedules to Francis and having taken numerous other actions in favor of GDMA and in violation of his official duties, Amundson was interviewed by federal criminal investigators in October 2013. As part of his plea agreement, Amundson admitted that he deleted all of his private e-mail account correspondence with Francis following his interview with law enforcement agents earlier that same day. As the United States submitted in its Memorandum in Support of Sentencing, “Amundson destroyed evidence of his conspiratorial relationship with Francis after it appeared law enforcement had caught up with him. In this attempt to cover-up and to destroy evidence, Amundson knew then what he would admit to years later in his plea agreement in this case: He actively conspired to commit bribery with Francis and GDMA in violation of the law and in abrogation of his official duties to the U.S. Navy.”
“Amundson cavalierly and selfishly traded on a sacred position of trust, selling his honor to a foreign defense contractor in exchange for prostitutes and entertainment expenses,” said U.S. Attorney Adam Braverman. “We will vigorously enforce the law when a public official puts his own selfish personal interests ahead of the interests of the Navy and our nation.”
So far, 33 defendants have been charged and 21 have pleaded guilty, many admitting they accepted luxury travel, parties and services of prostitutes from Francis in exchange for helping the contractor win and maintain contracts and overbill the Navy by millions of dollars.
The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Fraud Section of the Justice Department’s Criminal Division.
DEFENDANT Case Number: 18-CR-468-JLS
Commander Troy Amundson Age: 51 Ramsey, Minnesota
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
Maximum Penalty: 5 years in prison, a $250,000 fine
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
DRUG CARTEL LEADER CHARGED_Juan Perez-Vargas, aka Piolin, Indicted as Part of Coordinated Nationwide Enforcement Efforts Against Cartel Jalisco Nueva GeneracionRead the Press Release
NEWS RELEASE SUMMARY – October 16, 2018
SAN DIEGO – The Department of Justice announced today a series of measures to target and dismantle the Cartel Jalisco Nueva Generacion (CJNG) – one of the largest, most dangerous drug cartels currently operating in Mexico. As part of those measures, the U.S. Attorney’s Office for the Southern District of California, announces the indictment of CJNG leader, Juan Perez-Vargas, aka Piolin.
A federal grand jury in San Diego returned a sealed indictment on January 27, 2017, charging Perez-Vargas, with Conspiracy to Distribute Controlled Substances Intended for Importation, and Conspiracy to Import Controlled Substances. On January 30, 2017, the Clerk of the Court issued a sealed warrant for his arrest. On September 20, 2017, Perez-Vargas was arrested in Guadalajara, Mexico pursuant to these charges in the United States and is currently awaiting extradition to San Diego.
CJNG is one of the most powerful cartels in Mexico and the Department of Justice considers it to be one of the five most dangerous transnational criminal organizations in the world, responsible for trafficking numerous tons of cocaine, methamphetamine and fentanyl-laced heroin into the United States. Founded in 2011, CJNG has grown in size and strength rapidly since its inception. Today, the DEA estimates the CJNG exerts influence in 23 of 31 (75 percent) of Mexican states, including key drug production and transportation corridors. CJNG is also responsible for significant amounts of violence and loss of life in Mexico. CJNG gained its power in Mexico as a result of the organization’s disciplined command and control, sophisticated money laundering techniques, efficient drug transportation routes, and extreme violence. The cartel has also expanded globally, with significant presence and illicit business not only throughout the United States and Mexico, but also Europe, Asia, and Australia.
The unsealed indictment marks the conclusion of the initial phase of a multi-year OCDETF investigation. This joint Homeland Security Investigations (HSI) and Drug Enforcement Administration (DEA) investigation targeted the leadership elements, lieutenants, associates, and money launderers connected with CJNG, the Rafael Caro-Quintero (RCQ) DTO and Beltran Leyva Organization (BLO).
“With today’s announcement, the Attorney General has made clear the Department’s focus on dismantling transnational criminal organizations,” said U.S. Attorney Adam L. Braverman. “This indictment proves yet again that the Southern District of California will take the lead to relentlessly target and bring to justice the most significant drug kingpins no matter where they operate.”
U.S. Attorney Braverman also praised the outstanding work of the federal team from HSI Calexico / DEA Imperial County in the culmination of this investigation. U.S. Attorney Braverman also thanked Customs and Border Protection, the U.S. Marshals Service, the U.S. Department of Justice’s Office of Enforcement Operations and the Office of International Affairs for their ongoing assistance in this investigation.
“Today’s Indictment is an example of the dedicated and collaborative efforts by HSI Calexico and DEA Special Agents,” said David Shaw, Special Agent in Charge for HSI San Diego. “This joint effort allowed for the opportunity to narrow the investigation, identify more high level targets and significantly impact the cartel leadership structure. HSI agents remain committed to working with our partners and prosecutors in bringing additional members of this transnational criminal organization to justice.”
“Together with our law enforcement partners, DEA continues to target and take down some of the highest-level drug traffickers in the world,” said DEA San Diego Special Agent in Charge Karen Flowers. “CJNG is in our crosshairs and this indictment reflects that we will ensure that drug traffickers pay a very high price for their crimes.”
This case is also 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 17CR219-CAB
Juan Perez-Vargas, aka Piolin Age: 37 Guadalajara, Mexico
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963; Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release.
Conspiracy to Import Controlled Substances, in violation of Title 21 U.S.C. §§ 952, 960 and 963. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release.
AGENCIES
Homeland Security Investigations
Drug Enforcement Administration
Customs and Border Protection, Office of Field Operations
United States Marshals Service
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of Enforcement Operations
Department of Justice, Office of International Affairs
Customs and Border Protection, Office of Border Patrol
Immigration and Customs Enforcement, Enforcement and Removal Operations
El Centro Police Department
Brawley Police Department
Imperial County District Attorney’s Office
Imperial Valley, Law Enforcement Coordination Center
*An indictment or complaint 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.
U.S. Attorney Adam Braverman Announces Progress in Making our Communities Safer Through Project Safe NeighborhoodsRead the Press Release
NEWS RELEASE SUMMARY – October 12, 2018
SAN DIEGO – One year ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), which Attorney General Sessions has made the centerpiece of the Department’s violent crime reduction strategy. This program focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. PSN brings together a wide array of community leaders to identify the most pressing violent crime problems and develop comprehensive solutions to address them.
In the Southern District of California (SDCA), the PSN program operates primarily as a collaboration between the United States Attorney’s Office and the San Diego County District Attorney’s Office. Utilizing intelligence from both local and federal law enforcement, these two prosecutorial offices (the largest two in the region) work to determine which jurisdiction (state or federal) will be able to provide the greatest impact for the community. In the past year, the PSN partnership has frequently resulted in the deployment of federal enforcement resources against violent offenders who might face a much smaller sanction in state court.
Nationally, the FBI’s official crime data for 2017 reflects that the violent crime rate decreased by approximately one percent in 2017, while the homicide rate decreased by nearly one and a half percent. Locally, San Diego has achieved its lowest crime rate in the past 49 years and we had the lowest violent crime rate of America’s largest cities last year. A recent SANDAG (San Diego Association of Governments) report indicates that guns are used less often in violent crimes in San Diego than the national average.
“Project Safe Neighborhoods is a proven program with demonstrated results,” Attorney General Jeff Sessions said. “We know that the most effective strategy to reduce violent crime is based on sound policing policies that have proven effective over many years, which includes being targeted and responsive to community needs. I have empowered our United States Attorneys to focus enforcement efforts against the most violent criminals in their districts, and directed that they work together with federal, state, local, and tribal law enforcement and community partners to develop tailored solutions to the unique violent crime problems they face. Each United States Attorney has prioritized the PSN program, and I am confident that it will continue to reduce crime, save lives, and restore safety to our communities.”
“San Diego’s violent crime rate was the lowest of every major city in the nation last year due to effective partnerships,” stated U.S. Attorney Adam Braverman. “Our federal prosecutors work hand-in-hand with local law enforcement agencies to successfully prosecute significant cases involving guns, drugs and gangs and to collaborate on evidence-based prevention efforts. This approach has delivered clear results in the form of safer neighborhoods.”
Between fiscal year 2017 and fiscal year 2018, cases designated and prosecuted by the United States Attorney’s Office under the Project Safe Neighborhoods Program rose 75 percent; from approximately 79 cases in 2017 to 139 cases in fiscal year 2018. These increases occurred at the same time as the United States Attorney’s Office increased the number of cases brought in other priority areas including narcotics trafficking and immigration enforcement. Efforts to increase prosecutions for fiscal year 2019 are already underway. Three recent examples highlight the types of the cases brought for federal prosecution, all aimed at making the Southern District of California safer:
- On September 6, 2018, Lorne Turman pleaded guilty in federal court for his role in a series of armed robberies throughout San Diego County. See U.S. v. Bickham, et al., 18-CR-2557-JLS. In his plea agreement, Turman admitted that he used a shotgun to rob a series of local businesses (known to local media as the “Grinch Bandit” robbery series). Under the terms of the agreement, the United States will be recommending a 42-year prison sentence for Turman.
- On July 18, 2018, Tony Hwong, a Westside Luni Mob gang member, was sentenced to 10 years in federal prison for possessing a firearm while selling methamphetamine. See U.S. v. Hwong, 18-CR-059-WQH. Hwong was originally arrested by members of the San Diego Police Department during a probation sweep but was diverted for federal prosecution based on the threat he posed to the community.
- On October 2, 2018, Chad Kipper, the former CEO of the Freedom Fighters Foundation, was convicted of felony gun trafficking. See U.S. v. Kipper, 18-CR-2460-BAS. Kipper admitted that he had falsely claimed to be an Arizona resident during fourteen firearms-purchases in Arizona during 2016. Learn more about Kipper’s prosecution.
The United States Attorney’s Office furthers PSN’s prevention mission by convening stakeholders, forging diverse partnerships, providing mentors, and using the following novel approaches to reduce violent crime:
- Because youth are often groomed and recruited by gangs before middle school, the USAO partnered with community groups as well as county health, local law enforcement and school officials to launch “Success Agents,” an innovative program that offers at-risk 4th graders at Porter Elementary mentors and wrap-around support from 4th through 8th grade. A USAO-led team meets weekly with Success Agents kids, providing interactive workshops to improve decision-making, foster relationships and academic achievement, and expand horizons. Based on promising initial results, the San Diego Juvenile Justice Commission honored Success Agents for impressive teamwork in action and the San Diego District Attorney’s Office expanded it earlier this year to an additional elementary school.
- The USAO coordinates an 8-week Project Lead program in targeted elementary schools in a Southeast San Diego neighborhood affected by gangs and violent crime. The team’s efforts significantly expanded youth education on drug, alcohol and gang refusal skills, preparing more than 1,500 vulnerable 5th graders to make wise choices when asked to join gangs, use drugs, tag a building, or skip school. The program also builds strong relationships between students and federal law enforcement agents from many agencies, including the USAO, CBP, the Secret Service, and the U.S. Marshal’s Service.
- The USAO participates in the city’s creative Community Assistance Support Team (CAST), a stakeholder group designed to curb gang violence by partnering police with former gang and community members. Members work together immediately after shootings to prevent retaliation and escalation. Through CAST, the USAO meets regularly with police officers, Deputy Sheriffs, community activists, local pastors and community leaders to review violent incidents, discuss resources and needs, share information, and solve problems.
These enforcement actions and partnerships are 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. Learn more about Project Safe Neighborhoods.
Guilty Plea Involving Drug Loads in the Parking Lot at Local High SchoolRead the Press Release
NEWS RELEASE SUMMARY – October 11, 2018
San Diego, California – Defendant Alejandro Barba pled guilty today to conspiracy to distribute methamphetamine, which carries a 10 year minimum mandatory sentence, before Magistrate Judge Nita Stormes of the U.S. District Court for the Southern District of California.
On May 1, 2018, Barba, who was parked on the grounds of San Ysidro High school, received five kilograms of methamphetamine from a juvenile courier who attended San Ysidro High School. Barba was arrested shortly thereafter by the San Diego Sheriff’s Office Border Suppression Team. Special Agents with Homeland Security Investigation and Drug Enforcement Administration assisted in the investigation.
During his guilty plea today, Barba admitted picking up methamphetamine on multiple occasions at the San Ysidro High School parking lot from juveniles, who smuggled methamphetamine into the United States.
His next court appearance is on January 4, 2019 for sentencing before District Court Judge Anthony Battaglia.
DEFENDANT
Criminal Case No. 18CR2850AJB
Alejandro Barba 27 years old San Diego, California
CHARGE
Conspirary To Distribute Methamphetamine (21 U.S.C. 841 & 846)
10 years minimum to life in custody; $1,000,000 fine
AGENCIES
San Diego County Sheriff’s Department
SDCO’s Border Suppression Team
Homeland Security Investigations
Drug Enforcement Administration
Suspected Online Drug Dealer Indicted in Fentanyl Overdose DeathRead the Press Release
Assistant U. S. Attorney Michael A. Deshong (619) 546-9290
NEWS RELEASE SUMMARY – October 10, 2018
SAN DIEGO – Suspected drug dealer Trevon Lucas was indicted by a federal grand jury for distributing fentanyl that caused the death of a La Jolla resident, identified only as C.A.S. in court filings.
According to statements made by prosecutors at his detention hearing yesterday, C.A.S. was found dead in his mother’s home on the morning of June 30, 2018. Evidence obtained from C.A.S.’s cellular phone and a parking lot surveillance camera indicate he met Lucas to purchase prescription oxycodone pills around 11:20 p.m. the night before his mother found his body. Law enforcement officials recovered counterfeit oxycodone pills that contained fentanyl from C.A.S.’s residence, and the medical examiner has since identified fentanyl intoxication as the cause of death.
Lucas and three other residents of the Highland / San Bernardino area—Cenclair Fields, Donovan Carter, and Kevin Chandler—were also indicted for their roles in an ongoing conspiracy to distribute pharmaceutical pills containing hydrocodone. Law enforcement officials have gathered evidence indicating that Lucas and Carter posted advertisements on a well-known website to illegally sell prescription pills.
“Fentanyl is claiming record numbers of victims, most of whom don’t even know they’re swallowing a pill that’s laced with the deadly drug,” said U.S. Attorney Adam Braverman. “Those who sell fentanyl resulting in death will be held accountable for their callous and reckless disregard for human life.”
“We’re seeing a dangerous trend of drug dealers and cartels cutting various drugs with fentanyl, which is a recipe for death,” said District Attorney Summer Stephan. “When you sell fentanyl to another human being, you are providing them with toxic poison that can kill them in a matter of seconds. Even a tiny amount of fentanyl can be deadly, which is why we’re working with our partners at the U.S. Attorney’s Office, and Drug Enforcement Administration to address this disturbing trend.”
“Unless you buy your prescription pills from a legitimate pharmacy, it’s very likely you’ll get fake prescription pills laced with deadly fentanyl,” said DEA Special Agent in Charge Karen Flowers. “Individuals seeking to make an easy buck are putting fentanyl into fake pills and passing them off as legitimate prescription medications. DEA and our law enforcement partners will continue to target and relentlessly pursue the individuals who are selling fake prescription pills laced with deadly fentanyl to citizens in our community.”
Lucas, Carter, Chandler, and Fields made their initial appearances in federal court Friday, October 5, before U.S. Magistrate Judge Barbara L. Major, followed by a detention hearing yesterday morning. Judge Major detained Lucas based on the seriousness of the charges against him, while setting bonds for Fields, Carter and Chandler. Their next hearing is scheduled for November 9, 2018 before U.S. District Judge Cathy Ann Bencivengo.
Lucas is the fifth person since January to be charged in the Southern District of California with Distribution of Fentanyl Resulting in Death. This case involved a collaborative effort between the United States Attorney’s Office and the San Diego County District Attorney’s Office.
DEFENDANTS Case Number 18cr4224-CAB
Trevon Antone Lucas Age: 23 Highland, CA
Cenclair Marie Fields Age: 23 Highland, CA
Kevin Vandale Chandler Age: 24 Highland, CA
Donovan Adontas Carter Age: 23 San Bernardino, 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
Conspiracy to Distribute and Possess with Intent to Distribute Hyrdrocodone – Title 21, U.S.C., Sections 846 and 841(a)(1) & (b)(1)(C)
Maximum Penalty: 20 years
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
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
U.S. Attorney Announces Millions of Dollars in DOJ grantsRead the Press Release
Assistant U.S. Attorney Cindy Cipriani 619-546-9608
NEWS RELEASE SUMMARY – October 4, 2018
SAN DIEGO – U.S. Attorney Adam Braverman today announced several significant U.S. Department of Justice (DOJ) grants to San Diego entities, each of which submitted competitive proposals to increase public safety by preventing and/or responding to emerging crime problems. The awards include:
- A total of $2,615,000 to Alliance for HOPE International (Alliance), a non-governmental organization that works to end violence against women, children and families. Of this sum, $2,165,000 will be used to streamline the case intake and service delivery process at Family Justice and Multi-Agency Centers and other victim service provider organizations. The revised system will increase agency coordination, provide easier access to services, and allow for data aggregation at the national level to improve service delivery and effectiveness for human trafficking survivors. The project will also integrate cutting-edge tools into the intake and assessment process, allowing Centers to quickly determine victims’ needs, streamline referrals, and automate and track effective service delivery. Alliance will also receive $450,000 to provide trainings and technical assistance to Family Justice Centers throughout the United States. In partnership with the National Center on Domestic Violence, Trauma, and Mental Health, the Alliance will provide training and technical assistance focused on building the capacity of Family Justice Centers/Multi-Agency Centers, as well as other co-located service centers, to provide effective services to survivors of domestic violence and sexual assault with substance use-related needs.
- $1,973,347 to the San Diego-based Identity Theft Resource Center (ITRC) to create technology solutions designed to help victims of identity crimes receive immediate assistance and reduce the risk of further victimization. ITRC plans to expand hours of service, improve tools for faster intake, develop the capability to offer immediate customized recommendations and resources, expand remediation tools, incorporate a data breach risk score, include real time alerts and additional remediation tools on an identity theft app, provide ways for victims to self-report and access case information, and launch an outreach campaign to increase awareness of ways to mitigate risks associated with identity crime.
- $1,200,000 to Rady Children’s Hospital Center to develop and strengthen Children's Advocacy Centers (CACs) and Multidisciplinary Child Abuse Teams (MDTs) in 13 states in the Western region. These funds will be used for conferences; information dissemination; on-site technical assistance and team training; multidisciplinary and discipline-specific training; use of innovative technologies; mentoring of CAC programs; CAC leadership development; and chapter development to strengthen state networks and develop new programs. The Chadwick Center for Children and Families at Rady Children’s Hospital – San Diego (RCHSD) will manage the Western Regional Children’s Advocacy Center (WRCAC). The WRCAC will help communities develop multidisciplinary teams and local programs, such as child advocacy centers, to better respond to child abuse and neglect, especially child sexual abuse, child sex trafficking, and severe physical abuse. It will also deliver training and technical assistance to strengthen existing functions in the 13 western states.
- $ 931,395 to the City of Escondido Police Department to create and begin implementing a strategic, collaborative, and community-oriented plan to reduce crime. The City plans to identify, verify, and prioritize crime hot spots within a specific target neighborhood; work with cross-sector team and law enforcement partners to develop a multi-faceted strategy, using multiple approaches to address crime drivers; pursue community partnerships; engage the community by employing innovative approaches to collecting resident input; and collaborate with local law enforcement, a research partner/team, and the community to conduct analysis of crime drivers and an assessment of needs and resources. The project managers plan to have neighborhood residents play an active role.
- $700,000 to San Diego Youth Services to enhance the specialized services available to assist victims of human trafficking by increasing interagency collaboration and ensuring a coordinated community response to victims. This grant will fund provision of high-quality, specialized services that address the individual needs of trafficking victims, including housing, economic and leadership empowerment, mental health, substance abuse, and legal services. The program will also support efforts to increase the capacity of communities to respond to human trafficking victims through the development of interagency partnerships, professional training, and public awareness activities.
- $500,000 to the Escondido Education Compact, to support youth mentoring organizations that have a demonstrated partnership with a juvenile justice agency to provide mentoring services to youth screened as posing low risk to public safety. The goal of Project Hero, a diversion program that emphasizes the dual goals of rehabilitation and accountability, is to improve the quality of life for at-risk and high-risk juvenile justice system-involved youth, families, and communities by directly influencing youth outcomes. The program will target improved academic performance, reduced dropout rates, juvenile delinquency, substance use, and gang participation. To achieve this goal, the compact will provide high-quality, evidence-based mentoring services tailored to the needs of at-risk and high-risk youth referred to the program through the Escondido Police Department or other law enforcement agencies. By matching youth with mentors, the program intends to reduce recidivism and support academic achievement and school attendance.
- $ 401,136 to the City of San Diego for the Internet Crimes Against Children (ICAC) Task Force, to prevent, interdict, investigate and prosecute technology-facilitated child exploitation and Internet crimes against children; improve task force effectiveness by educating, training and empowering local School Resource Officers and Juvenile Investigators; and engage in community outreach activities including training, prevention, and education seminars.
- $373,037 to the Strong Hearted Native Women’s Initiative, Inc., which serves tribal reservations and communities located in the counties of San Diego, Santa Barbara, San Bernardino, and Riverside. Additionally, SHNWC also works with many of the non-native service providers within San Diego and Riverside Counties, including four shelter programs and three rape crisis centers, as well as with San Bernardino-Riverside Indian Health under the Kiicha safe home project. With this award, SHNWC will provide technical assistance, training, and services to the community service area to enhance access and awareness to services for victims of domestic violence, sexual assault, dating violence, stalking, and sex trafficking.
“The U.S. Department of Justice is committed to keeping our community safe by supporting innovative programs that both prevent crime and showcase best practices in supporting victims,” said U.S. Attorney Adam L. Braverman. “These grant awards will benefit San Diego and, in some instances, the entire country, by increasing awareness, upgrading crime reporting options, offering critical assistance to those who need it during an extremely difficult time in their lives, and connecting vulnerable communities to law enforcement resources.”
- A total of $2,615,000 to Alliance for HOPE International (Alliance), a non-governmental organization that works to end violence against women, children and families. Of this sum, $2,165,000 will be used to streamline the case intake and service delivery process at Family Justice and Multi-Agency Centers and other victim service provider organizations. The revised system will increase agency coordination, provide easier access to services, and allow for data aggregation at the national level to improve service delivery and effectiveness for human trafficking survivors. The project will also integrate cutting-edge tools into the intake and assessment process, allowing Centers to quickly determine victims’ needs, streamline referrals, and automate and track effective service delivery. Alliance will also receive $450,000 to provide trainings and technical assistance to Family Justice Centers throughout the United States. In partnership with the National Center on Domestic Violence, Trauma, and Mental Health, the Alliance will provide training and technical assistance focused on building the capacity of Family Justice Centers/Multi-Agency Centers, as well as other co-located service centers, to provide effective services to survivors of domestic violence and sexual assault with substance use-related needs.
Illegal Sea Cucumber Trade Nets More than $1.2 Million Dollars in Fines, Forfeiture and RestitutionRead the Press Release
Assistant U.S. Attorney Melanie K. Pierson (619) 546-7976
NEWS RELEASE SUMMARY – October 1, 2018
SAN DIEGO – A Tucson firm and two executives were recently sentenced to pay over $1.2 million in fines, forfeiture and restitution for the illegal trafficking in sea cucumber from 2010-2012.
In May of 2017, Blessings, Inc. of Tucson, its owner David Mayorquin, and former executive Ramon Torres Mayorquin of San Diego were charged in a 26-count indictment with conspiracy, illegal trafficking in wildlife, importation contrary to law, false labeling and criminal forfeiture related to the importation of $17 million of sea cucumber.
Blessings, Inc. pleaded guilty on March 8, 2018, admitting that the company conspired to illegally export sea cucumber to Asia. Defendant Ramon Mayorquin also pleaded guilty, acknowledging that he imported the sea cucumber into the United States from Mexico by means of documents containing false information. And, defendant David Mayorquin pleaded guilty, admitting that the sea cucumber he imported into the United States had been taken, possessed, transported or sold in violation of Mexican law.
At a hearing on September 17, 2018, U.S. District Judge Roger T. Benitez sentenced Blessings, Inc. and David Mayorquin to pay a fine of $973,490, and directed that half of the fine be deposited in the Lacey Act Rewards Fund and the other half into the Magnuson Stevens Fishery Conservation and Management Act Fund. In addition, Blessings, Inc. was ordered to forfeit $237,879 in proceeds from the offense, and David Mayorquin was ordered to pay $40,000 to the government of Mexico as restitution for the loss of its natural resources. All three defendants were placed on probation.
The Lacey Act Reward Account was established to accept any fine, penalty or forfeiture of collateral money collected for offenses involving either the Lacey Act or the Endangered Species Act in accordance with provisions of the 1981 Lacey Act Amendments. Examples of how these funds may be used include to provide monetary awards to those who provide information about wildlife crimes and to pay costs incurred in caring for fish, wildlife or plants that are being held as evidence in ongoing investigations. The Magnuson Stevens Fishery Conservation and Management Act Fund is used for rewards to those providing information that leads to enforcement action and costs related to investigations.
According to the Fish and Wildlife Service, there are about 1,200 species of sea cucumbers worldwide. Found on the ocean floor, sea cucumbers act as filters taking in various types of detritus, including carcasses and excrement, and expelling filtered material. This action helps keep the ocean floor free of organic matter that could lead to algae blooms. Through this process, sea cucumbers help protect coral reefs because the material they excrete includes calcium carbonate, a key building block of coral.
In many parts of the world, sea cucumbers are sought after as a delicacy and as a medicine and aphrodisiac. This has fueled demand and increased illegal trade of this species. Unfortunately, the illegal trade in sea cucumbers is leading to sharp declines of the species in parts of the world.
With increased cooperation with Mexican officials, the importation of sea cucumber from Mexico to the United States through the ports of entry in San Diego have decreased dramatically in the past four years. According to the NOAA Office of Science and Technology, Commercial Fisheries Statistics Division website, total sea cucumber imports from 2013 through 2017 into the San Diego ports of entry have decreased from 1,096,258 kg in 2013 to 63,545 kg in 2017.
“Illegal trafficking in fish and wildlife is big business,” said U.S. Attorney Adam L. Braverman. “This case demonstrates our commitment to work together with our law enforcement partners to prosecute such criminals and take away their unlawful profits.”
“Protecting marine resources and combating wildlife trafficking is an important part of NOAA's mission,” said James Landon, Director of NOAA's Office of Law Enforcement. “This case demonstrates the results of partnerships and cooperation between enforcement agencies to achieve such a strong result.”
“Wildlife trafficking is a serious crime that impacts plants, animals and insects around the world,” said Edward Grace, Acting Assistant Director of the U.S. Fish and Wildlife Service’s Office of Law Enforcement. “We are committed to working with others to protect at-risk species, like sea cucumbers, and hope the sentencing in this case will send a strong message to those who choose to defy the law.”
“A large overseas demand for sea cucumbers harvested in Mexico has fueled an increase in illicit importation-schemes uncovered at commercial ports of entry on the U.S.-Mexico border,” said Dave Shaw, special agent in charge for Homeland Security Investigations in San Diego. “This investigation underscores HSI’s commitment to ensuring U.S. trade laws are not exploited by those seeking financial gain.”
DEFENDANTS Criminal Case No. 17cr1254-BEN
Blessings, Inc Incorporated: 2003
Tucson, Arizona
David Mayorquin Age: 41
Tucson, Arizona
Ramon Torres Mayorquin Age: 77Chula Vista, California
SUMMARY OF CHARGES
Count 1 (Defendant Blessings)
Conspiracy, 18 U.S.C. § 371
Maximum penalty: 5 years’ prison, fine of $250,000
Count 12 (Defendant Ramon Mayorquin)
Importation Contrary to Law, 18 U.S.C. §545
Maximum Penalty: 20 years’ prison, $250,000 fine or twice the gross gain or loss caused by the offense, restitution, forfeiture of proceeds generated from the, five years of supervised release.
Counts 1 & 2 of Superseding Information (David Mayorquin)
Illegal Importation of Wildlife, 16 U.S.C. §3372(a)(2)(A) and §3373(d)(2)
Maximum Penalty: 1 year of prison, $100,000 fine per count
AGENCIES
National Oceanic and Atmospheric Administration, Office of Law Enforcement
U.S. Fish & Wildlife Service, Office of Law Enforcement
Homeland Security Investigations
Former CEO of the Freedom Fighters Foundation Convicted of Felony Gun TraffickingRead the Press Release
Assistant U. S. Attorney Andrew R. Haden (619) 546-6961
NEWS RELEASE SUMMARY – October 2, 2018
SAN DIEGO – Chad Clay Kipper, the former Chief Executive Officer of the Freedom Fighters Foundation, pleaded guilty in federal court yesterday, admitting to the unlicensed purchase and transportation of firearms.
According to court documents, in January 2018, the Bureau of Alcohol Tobacco Firearms and Explosives (ATF) became aware of a private firing range in San Diego where individuals were reportedly firing fully automatic firearms in close proximity to a nearby neighborhood. A subsequent investigation revealed that Chad Clay Kipper was listed with the California Secretary of State as the Chief Executive Officer of the Freedom Fighters Foundation, the non-profit organization that owns the firing range.
Record checks into Kipper revealed that he had not registered any fully automatic weapons with the State of California. The checks also revealed that Kipper, a longtime resident of Carlsbad, had been purchasing firearms in Arizona and had then quickly resold several of them in California for a profit.
On Monday, Kipper pleaded guilty to felony gun trafficking before U.S. District Judge Cynthia A. Bashant. In his plea agreement, Kipper admitted that he had falsely claimed to be an Arizona resident during 14 firearms purchases in Arizona during the year 2016. He also admitted to being the former Chief Executive Officer of the Freedom Fighters Foundation.
It is a federal crime to make material misrepresentations during the purchase of a firearm. Federal statutes also make it illegal to purchase and transport firearms from one state back to your state of residence, unless you are a licensed firearms dealer.
After pleading guilty, Kipper was sentenced and is now a convicted felon. As such, he is prohibited by both federal and state laws from ever possessing a firearm. As part of his guilty plea, Kipper also forfeited 16 firearms to the United States that he had unlawfully obtained or possessed. The list of forfeited firearms includes assault-style rifles and handguns.
“The Department of Justice takes federal firearms statute violations very seriously,” said U.S. Attorney Adam Braverman. “The trafficking of illegal guns in our communities is a threat to public safety and won’t be tolerated.”
“It is imperative individuals follow the federal firearms laws, to reduce the risk of public safety caused by firearms trafficking.” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Los Angeles Field Division Special Agent in Charge Bill McMullan. “The mission of ATF is to protect communities from violent criminals, criminal organizations, and the illegal use and trafficking of firearms. As a result of this individual’s actions of lying and buying, he will never be allowed to legally own a gun.”
DEFENDANTS Case Number 18-CR-2460-BAS
Chad Clay Kipper Age: 34 San Diego, CA
SUMMARY OF CHARGES
Unlicensed Transportation of Firearms – Title 18, U.S.C., Section 922(a)(3)
Maximum penalty: 5 years’ imprisonment and $250,000 fine
AGENCY
Bureau of Alcohol Tobacco Firearms and Explosives (ATF)
*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 to 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.
CPA Sentenced for Role in Racketeering EnterpriseRead the Press Release
Assistant U. S. Attorneys Andrew Young (619) 546-7981, Benjamin J. Katz (619) 546-9604 and Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – October 2, 2018
SAN DIEGO – Luke Fairfield, a San Diego-based Certified Public Accountant, was sentenced today to 21 months in prison for his role in the criminal enterprise led by former USC football player Owen Hanson – an international drug trafficking, gambling, and money laundering organization known as “ODOG.”
Hanson operated ODOG in the United States, Central and South America, and Australia from 2012 to 2016, trafficking in thousands of kilograms of cocaine, heroin, methamphetamine, MDMA (also known as “ecstasy”), and other illegal drugs in wholesale and retail quantities. The ODOG enterprise also operated a vast illegal gambling network focused on high-stakes wagers placed on sporting events. To carry out its gambling operation, the ODOG enterprise employed numerous bookies and money runners, and in the event a customer did not pay his gambling debt, the ODOG enterprise employed enforcers to threaten, intimidate, and injure its own customers in order to force compliance.
As Fairfield admitted when pleading guilty in March of 2017, his role in the ODOG enterprise included laundering money, aiding in the creation of shell companies to hide ODOG’s criminal proceeds, and training ODOG money runners on methods and tactics to hide the enterprise’s activities from law enforcement and banks. On one occasion, Fairfield personally transferred proceeds of Hanson’s Australian drug trafficking to the United States using an alias and fake identification. Fairfield also worked with Hanson to track the collection of debts from bookies and gamblers who owed the ODOG enterprise hundreds of thousands of dollars from illegal bookmaking.
Because of this conviction, Fairfield is no longer licensed as a CPA. The defendant, who is free on bond, was ordered to surrender on November 9, 2018.
“Transnational racketeering organizations like Hanson’s are a threat to the safety and security of our communities, and we are committed to prosecuting the corrupt professionals, like Fairfield, who use their specialized skills to help criminal organizations,” said U.S. Attorney Adam Braverman.
“Money laundering is the grease that allows the wheels of Transnational Criminal Organizations to turn,” said John Brown, FBI Special Agent in Charge of the San Diego Field Office. “Today’s sentencing of Fairfield sends a clear message that business professionals who facilitate the finances of these organizations not only risk losing their professional licenses but also face the prospect of time in prison. This conviction would not have been possible without the significant contributions of the Internal Revenue Service and the New South Wales Police Force.”
Fairfield is the last of 22 defendants charged in the case to be sentenced. The case arose out of a joint investigation by FBI, DEA, and the New South Wales (Australia) Police Force in conjunction with the New South Wales Crime Commission. Assistant U.S. Attorneys Andrew P. Young, Benjamin Katz and Mark W. Pletcher are prosecuting the case, with assistance from DOJ’s Office of International Affairs.
DEFENDANTS Case Number 15-CR-2310-WQH
Owen Hanson Age: 34
Luke Fairfield Age: 40
Kenny Hilinski Age: 39
Giovanni Brandolino Age: 42
Daniel Portley-Hanks Age: 70
Jack Rissell Age: 50
Derek Loville Age: 48
Chalie D’Agostino Age: 52
Marlyn Villareal Age: 32
Dylan Anderson Age: 34
Tim Bryan Age: 48
Jim Muse Age: 53
Jeff Bellandi aka “Jazzy” Age: 50
Curtis Chen Age: 33
James Duley Age: 41
Dee Foxx Age: 35
Khalid Petras Age: 55
Rahul Bhagat Age: 31
David Kipper Age: 35
Todd Oldham Age: 32
Daniel Ortega Age: 42
SUMMARY OF CHARGES
Racketeering Conspiracy to Conduct RICO Enterprise Affairs, 18 U.S.C. § 1962(d)
Maximum penalty: 20 years in prison, fine of $250,000 or twice the gross gain or loss caused by the offense, forfeiture of any property obtained or operated by RICO enterprise, 3 years’ supervised release.
AGENCIES
Federal Bureau of Investigation – San Diego Field Office
U.S. Drug Enforcement Agency
Internal Revenue Service – San Diego
Australian Crime Commission
New South Wales Police Force
New South Wales Crime Commission
CEO of Encrypted Communications Company Pleads Guilty to Operating a Criminal Enterprise that Facilitated the Transnational Distribution of NarcoticsRead the Press Release
Assistant U. S. Attorneys Andrew Young (619) 546-7981, Mark W. Pletcher (619) 546-9714 and Benjamin J. Katz (619) 546-9604
NEWS RELEASE SUMMARY – October 2, 2018
SAN DIEGO – Vincent Ramos, the chief executive of Canada-based Phantom Secure, pleaded guilty today to leading a criminal enterprise that facilitated the transnational importation and distribution of narcotics through the sale and service of encrypted communications devices.
In his plea agreement, Ramos admitted that he and his co-conspirators facilitated the distribution of cocaine, heroin, and methamphetamine to locations around the world including in the United States, Australia, Mexico, Canada, Thailand and Europe by supplying narcotics traffickers with Phantom Secure encrypted communications devices designed to thwart law enforcement. To keep the communications out of the reach of law enforcement, Ramos and others maintained Phantom Secure servers in Panama and Hong Kong, used virtual proxy servers to disguise the physical location of its servers, and remotely deleted or “wiped” devices seized by law enforcement. Ramos and his co-conspirators required a personal reference from an existing client to obtain a Phantom Secure device. And Ramos used digital currencies, including Bitcoin, to facilitate financial transactions for Phantom Secure to protect users’ anonymity and launder proceeds from Phantom Secure. Ramos admitted that at least 450 kilograms of cocaine were distributed using Phantom Secure devices.
As part of his guilty plea, Ramos agreed to an $80 million forfeiture money judgment as well as the forfeiture of tens of millions of dollars in identified assets, ranging from bank accounts worldwide, to houses, to a Lamborghini, to cryptocurrency accounts, to gold coins. In addition, Ramos agreed to forfeit the server licenses and over 150 domains which were being used to operate the infrastructure of the Phantom Secure network, enabling it to send and receive encrypted messages for criminals.
“The Phantom Secure encrypted communication service was designed with one purpose – to provide drug traffickers and other violent criminals with a secure means by which to communicate openly about criminal activity without fear of detection by law enforcement,” said U.S. Attorney Adam Braverman. “As a result of this investigation, Phantom Secure has been dismantled and its CEO Vincent Ramos now faces a significant prison sentence. The United States will investigate and prosecute anyone who provides support, in any form, to criminal organizations, including those who try to help criminal organizations ‘go dark’ on law enforcement.”
“Today’s guilty plea of Phantom Secure’s CEO, Vincent Ramos, is a significant strike against transnational organized crime,” said John Brown, FBI Special Agent in Charge of the San Diego Field Office. “The FBI and our international law enforcement partners have demonstrated that we will not be deterred by those who exploit encryption to benefit criminal organizations and assist in evading law enforcement. With this case, we have successfully shut down the communication network of dangerous criminals who operated across the globe.”
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 Racketeering in violation of 18 U.S.C. § 1962 and Conspiracy to Distribute Controlled Substances in violation of 21 U.S.C. § 841 and 846.
Ramos is scheduled to be sentenced on December 17, 2018 before U.S. District Judge Sentencing was set for December 17 before Judge Hayes
This case was investigated by FBI San Diego. 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; Customs and Border Protection; the 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 prison
AGENCIES
Federal Bureau of Investigation
Drug Enforcement Administration
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
Man Sentenced to 10 Years for 2016 Encinitas Arson SpreeRead the Press Release
Assistant U. S. Attorney Shital Thakkar (619) 546-8785 and Shane Harrigan (619) 546-6981
NEWS RELEASE SUMMARY – September 27, 2018
SAN DIEGO – Tyler Carender was sentenced in federal court today to 10 years in prison for damaging and destroying buildings at St. Andrew’s Episcopal Church and Oak Crest Middle School in Encinitas on three separate occasions in the fall of 2016, by means of fire and an explosive device.
Carender was arrested in July 2017 at his home on Island View Lane in Encinitas, which is adjacent to Oak Crest Middle School and about 400 yards from the church. He pleaded guilty on March 9, 2018 to all three arson-related charges in the indictment.
In his plea agreement, Carender admitted that he began his 21-day arson spree on Saturday, October 22, 2016, when he set fire to the “Friendship House” Counseling and Youth Center building at the Saint Andrew’s Episcopal Church complex on Balour Drive in Encinitas. The rapid response of the Encinitas Fire Department prevented the fire from spreading to other church buildings and nearby residences. However, the Youth Center was destroyed, resulting in an estimated monetary loss of at least $200,000. St. Andrew’s uses the Youth Center building to house its youth group functions and to provide food, meals and shelter to the needy in the community.
Carender also admitted that a week later, on Saturday, October 29, he set fire to the Administrative Building at the Oak Street Middle School by breaking into the building and using gasoline to set fire to books and files within the building. Encinitas firefighters who arrived at the scene initially entered the building to fight the fire. However, due to the extent and intensity of the fire and the possible collapse of the roof, they were forced to retreat from the building and battle the blaze from the exterior. Carender admitted that his criminal conduct created substantial risk of injury to firefighters responding to the blaze. The damage caused by Carender’s arson not only rendered the administrative hub of the school unusable, but destroyed student records and displaced staff -- significantly disrupting the daily functions and operations of the school. The estimated monetary loss to the San Dieguito Union High School District is at least $1.5 million.
Carender also admitted that two weeks later he returned to the St. Andrew’s campus, and threw a Molotov Cocktail into the office of the church’s Preschool Building, causing another fire. The resulting damage to the building is estimated to be at least $25,000. The Preschool services approximately 80 students, and includes non-members of the parish.
According to court filings, San Diego Sheriff’s detectives received an anonymous tip from Crime Stoppers, which identified Carender as the arsonist. Thereafter, Carender confided in a classmate about committing the three arsons, and that classmate informed investigators and provided a recording of a conversation with the defendant admitted his involvement in setting the fires. After the Carender was arrested, he initially lied to agents, claiming innocence. However, after being confronted with evidence, he admitted starting all three fires.
At today’s hearing, the Reverend Brenda Sol, rector at St. Andrews Episcopal Church, addressed Carender and the Court stating that Carender’s actions cost the church a lot more than just money and time – it affected the lives of their church community and nearby neighbors in other more damaging ways. Members of the church and local residents experienced great emotional distress. The fires caused them to fear for their safety, placing them on constant alert. Families also pulled their children out of the Preschool, fearing further attacks. The fires also caused the church to divert resources from programs to feed the hungry in order to buy a security system. However, Rev. Sol expressed that although the church congregation is sad, they are not angry with Carender. In addressing Carender directly, Rev. Sol stated,
“We pray that you understand the depth and breadth of the lives you touched in such horrible and negative ways, so that you understand you can touch just as many lives doing helpful and beneficial things . . . We want you to know that when you committed these crimes on our property, you became one of us, so you will always have a home at St. Andrew’s.”
In imposing the ten year sentence, Judge Janis L. Sammartino noted that Carender’s crimes were “horrific” and the damage from his arson spree went “far and wide – far beyond property damage.” The Court deferred the determination of court ordered restitution until December 7, 2018, but is estimated that the restitution will exceed $1.5 million.
“It is very clear that all of the victims are still recovering from the emotional, psychological and physical damage caused by the defendant,” said U.S. Attorney Adam Braverman. “While the victims have graciously offered forgiveness, this sentence is an appropriate outcome for serious crimes that put people and property at great risk.”
“Arson is an act we take very seriously,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Los Angeles Field Division Special Agent in Charge Bill McMullan. “ATF uses its certified fire investigators to build these complex cases when arsonists commit these violent crimes. Damaging and attempting to destroy our community schools and places of worship will not be tolerated.”
DEFENDANT Case Number 17cr1588
Tyler Carender Age: 22 Encinitas, CA
SUMMARY OF CHARGES
Counts 1 and 3:
Malicious Damage to Buildings or Real Property Affecting Interstate Commerce by Means of Fire or an Explosive, in violation of Title 18, United States Code, Section 844 (i)
Count 2:
Malicious Damage to Buildings and Real Property Receiving Federal Financial Assistance by Means of Fire or an Explosive, in violation of Title 18, United States Code, Sec. 844(f )(1) and (f )(2)
AGENCY
U.S. Bureau of Alcohol, Tobacco Firearms and Explosives
San Diego County Sheriff’s Department
Twenty-Six Charged and 228 Guns Seized in Crackdown on San Diego Street Gangs and Mexican MafiaRead the Press Release
Assistant U.S. Attorneys Todd Robinson (619) 546-7994 and Kareem Salem (619) 546-8904
NEWS RELEASE SUMMARY – September 20, 2018
SAN DIEGO, CA – Twenty-six people, many of whom are alleged members and associates of criminal street gangs and the Mexican Mafia prison gang, are charged in complaints unsealed today with participating in drug- and gun-related conspiracies, including one that alleges a kidnapping and armed robbery that was prevented by law enforcement.
About 228 firearms were seized from a home in Lakeside during the investigation, and law enforcement officials who were listening in on conversations via court-approved electronic surveillance were able to thwart the attempted kidnapping of a gang member known as “Grizzly from Palm City.”
This morning before dawn, a contingent of more than 200 local, state and federal law enforcement officials searched dozens of locations around the county looking for defendants, guns and drugs. As of 3 p.m. today, 20 defendants are in custody. During searches today and over the course of the yearlong investigation, authorities have seized seven pounds of methamphetamine with an estimated street value of over $150,000. Six federal defendants are still at large, including Marla Caniglia, Christina Tovar, Farren Alcoser, aka “Sweetpea,” Soledad Mota, aka “Negra,” Tony Kiryakoza, and Candice Apra, aka “Babydoll.” Anyone with information is asked to contact the FBI at 858-320-1800.
According to one complaint charging Robert Thomas Welsh, San Diego Sheriff’s Department’s Special Enforcement Division executed a search warrant at Welsh’s residence on Wildcat Canyon Road in Lakeside. They found multiple gun safes in various locations within the home, a total of 228 firearms including AR-15 assault rifles and guns with obliterated serial numbers, multiple high capacity magazines including a 50-round drum magazine, several firearm silencer devices, a “Glock switch” device that converts a semi-automatic pistol into an automatic pistol and multiple cases of ammunition.
According to another complaint, in June of 2018, agents participating in the investigation learned that defendants Fady Esho, Sergio “Shaggy” Sanchez and Jose “Chapo” Hernandez intended to assault, intimidate, rob at gunpoint and restrain the intended victim on behalf of the Mexican Mafia because they believed he stole a laptop and other items from a gang associate.
Esho, along with fellow defendants Sergio “Shaggy” Sanchez and Jose “Chapo” Hernandez, set out to do the bidding of the prison gang leaders. However, the San Diego Police Department’s Gang Suppression Team conducted a traffic stop of their Hummer as the three defendants were en route to the “hit.” The trio was arrested and officers seized four firearms and zip ties.
According to the complaint, Esho was carrying a loaded Sig Saur .40-caliber handgun in a concealed holster on his waist, along with two filled magazines in separate holsters. Esho also had multiple zip ties in his rear pants pocket. A search of the Hummer resulted in the seizure of an additional three firearms, all of which were loaded: A Ruger 9mm handgun was located between the front passenger seat and the console; a Smith and Wesson 9mm handgun was located in a black bag in the rear seat; and a Ruger .22-caliber revolver was located under the driver’s floor mat.
In total, the defendants were charged in six complaints with various crimes, including racketeering, methamphetamine trafficking, felon in possession of firearms and other drug and gun offenses. According to the complaints, the gang members come from the following gangs: Otay Rasta Locos, Logan Heights Rep Steps, Encanto, Lomita, Logan Heights 30, Eastside, East County Blood, Lakeside Gangsters, Varrio Chula Vista and Pinoy.
“The seizure of hundreds of firearms is a very significant strike against gang violence in our communities,” said U.S. Attorney Adam Braverman. “Gang members live by a different set of norms, in a world where methamphetamine is a business and guns and violence are tools of the trade. Because of the strong partnerships between state, local and federal law enforcement, this operation is now closed.”
Federal Bureau of Investigation Special Agent in Charge John Brown stated, “Dismantling violent gangs is a continuing priority for the FBI. We share a long commitment with our law enforcement partners to address the dangerous threat facing our communities. Today's takedown demonstrates our focus and determination to strike at gang related enterprises and to eliminate the violence these groups inflict on our neighborhoods.”
The defendants had their initial appearance before United States Magistrate Judge Nita L. Stormes this afternoon. All defendants entered a plea of not guilty to the charges. Their next court appearance will be on September 25, 2018, for a hearing on the Government’s motion to have the defendants remain in custody pending trial.
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.
DEFENDANTS Case Number: 18mj4902
Robert Thomas Welsh
SUMMARY OF CHARGES
Title 18, U.S.C. § 922(o)(1) – Unlawful Possession of a Machine Gun
Maximum Penalty is 10 years in custody
Title 18, U.S.C. § 922(k) – Possession of a Firearm with Manufacturer’s Serial Number Removed and Obliterated
Maximum Penalty is 5 years in custody
DEFENDANTS Case Number: 18mj4979
Jesus Ramirez aka “Chuy”
Jorge Gonzalez aka “Lonely”
Chans Milstead
Christopher Risdon
Alan Rohrback Jr.
Brian Allen
Victoria Villa
Ricky Felizmena
Farren Alcoser
Soledad Mota aka “Negra”
Candace Apra aka “Babydoll”
SUMMARY OF CHARGES
Conspiracy to Distribute Methamphetamine, in violation of Title 21, U.S.C. Sections 841 (a)(1) and 846
Maximum Penalty, based on alleged drug amounts: Up to life in prison; 10 year mandatory minimum
DEFENDANTS Case Number: 18mj4978
Jesus Ramirez aka “Chuy”
Jose Hernandez aka “Chapo”
Fady Escho
Dale Chaney
Keleli Gaylord
Tony Kiryakoza
David Gautreau
Marla Caniglia
Christina Tovar
Sara Beamer
SUMMARY OF CHARGES
Conspiracy to Distribute Methamphetamine, in violation of Title 21, U.S.C. Sections 841 (a)(1) and 846
Maximum Penalty, based on alleged drug amounts: Up to life in prison; 10 year mandatory minimum
DEFENDANTS Case Number: 18mj4977
Fady Esho
Sergio Sanchez
Jose Hernandez
SUMMARY OF CHARGES
Violent Crime in Aid of Racketeering, in violation of Title 18, U.S.C. Section 1959
Maximum Penalty, based on the underlying racketeering crimes: Up to three years in prison
DEFENDANTS Case Number: 14mj4972
Sammy Harold Baugues
SUMMARY OF CHARGES
Felon in Possession of a Firearm, in violation of Title 18, U.S.C. Section 922(g)(1) and 924(a)(2)
Maximum Penalty is 10 years in custody
Possession with Intent to Distribute Methamphetamine, in violation of Title 21, U.S.C. Section 841(a)(1)
Maximum Penalty is 20 years in custody
DEFENDANTS Case Number: 18mj4971
Veronica Ojeda
Aimee Chavira
SUMMARY OF CHARGES
Conspiracy to Distribute Methamphetamine, in violation of Title 21, U.S.C. Sections 841 (a)(1) and 846
Maximum Penalty, based on alleged drug amounts: Up to life in prison; 10 year mandatory minimum
INVESTIGATING AGENCIES
Violent Crimes Gang Task Force
Task Force agencies include:
FBI, ATF, DEA, BOP, USPIS, California Department of Corrections and Rehabilitation, San Diego District Attorney's Office, San Diego Police Department, San Diego Sheriff's Department, National City Police Department, Chula Vista Police Department, La Mesa Police Department, El Cajon Police Department and Federal Bureau of Prisons- Joint Intelligence Sharing Initiative.
*A complaint is not evidence that the defendants committed the crimes charged. The defendants are presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.