Southern District of California
Press releases recorded for this federal judicial district.
Second Defendant Pleads Guilty; Admits His Role in Complex Scam to Steal Southern California HomesRead the Press Release
SAN DIEGO – Norwegian businessman Mohamed Daoud has pleaded guilty to laundering the proceeds of a complex scheme to steal real property.
According to his plea agreement, between July 2012 and February 2013, Daoud helped to launder some of the millions of dollars in proceeds generated by a group of confederates who posed as the real owners of Southern California homes in order to “sell” the properties to unsuspecting buyers – who later learned that they had actually purchased nothing. Immediately after each sale, Daoud admitted, the confederates would disburse the money, ensuring that the funds vanished and the buyers could not recover their stolen money.
During his guilty plea, Daoud admitted that he worked with a co-conspirator who used Daoud’s company, “Norway LLC,” as well as other business names, to pretend to acquire title to properties. The co-conspirator created fake deeds that made it appear the true owners had transferred the property to these companies, when in fact, the deeds were just forgeries, and the true owners had never really deeded the properties to anyone. He then arranged to have the forged deeds and other official documents recorded at the county recorder’s offices, so that the title records would make it appear that he was the property owner.
The confederates used a complex web of aliases and fake identities in order to shield themselves and protect the proceeds of the scheme. They diverted the proceeds of each transaction to bank accounts held in the name of fake businesses, then distributed the money further to conceal and disguise the location of the proceeds. Daoud admitted that during his participation in the money laundering conspiracy, his confederates induced at least six different buyers to purchase properties they did not own, leaving them with worthless claims to title and generating at least $1.4 million in proceeds from the fraud. Daoud received approximately $270,000 of the proceeds.
Another co-schemer, Daniel Deaibes, pleaded guilty in March 2015 to participating in the fraud. Deaibes admitted that he and others continued to operate the scheme until November 2014 (when Daoud, Deaibes, and another co-defendant were each indicted and arrested). In total, Daoud and Deaibes have admitted that they and their confederates fraudulently sold or attempted to sell at least 13 homes for more than $3 million.
As Deaibes admitted during his guilty plea, the schemers even took steps to thwart efforts by the true owners to regain clean title to the properties. In one instance, true owner Fannie Mae discovered that a fraudulent grant deed had been recorded on a property it owned in Rowland Heights, California. Shortly after discovering the fraudulent deed, Fannie Mae filed a lawsuit to recover control over the property and notify prospective buyers of the fraudulent deed. Undeterred, the schemers created a fake “Withdrawal of Lis Pendens” in an effort to proceed with the fraudulent sale. When Fannie Mae won a judgment in its favor and obtained a court finding that the deed was fraudulent, they created a fake “Satisfaction of Judgment” and recorded that fraudulent document as well.
Deaibes also admitted that he used the alias “John Moran” to pose as the seller’s representative in several of the fraudulent sales. He introduced himself as “Moran” and presented a fake driver’s license to two different notaries in 2014. Deaibes admitted that he signed fraudulent documents using this alias in an effort to sell or encumber properties that belonged to unsuspecting owners.
Most of these properties were actually owned by Fannie Mae and Freddie Mac -- government sponsored enterprises with a mission to provide liquidity, stability, and affordability to the United States housing and mortgage markets. As part of their mission, Fannie Mae and Freddie Mac purchase residential mortgages in the secondary market, enabling lenders to replenish their funds to finance additional single family loans. Fannie Mae and Freddie Mac can become the property owners if they own the mortgage loan at the time a home is foreclosed.
U.S. Attorney Laura E. Duffy commented, “The Department of Justice and our law enforcement partners are committed to protecting the recovering housing market from those who misuse the process to commit fraud. We will act aggressively to root out these invidious schemes and to protect the public’s confidence in the security of their most important investment, their homes.”
Leslie P. DeMarco, Special Agent in Charge, Western Region, Federal Housing Finance Agency – Office of Inspector General, said: “Mohamed Daoud will be held responsible for his role in a scheme that has caused loss to innocent victims and also worked to undermine the recovery of the housing market. FHFA-OIG will continue to work aggressively with our law enforcement partners to root out fraudsters and protect the taxpayers and unwitting victims in the housing market.”
Eric S. Birnbaum, FBI Special Agent in Charge in San Diego, commented, “The FBI is committed to working with our law enforcement partners in identifying, disrupting and dismantling complex fraudulent schemes that undermine our economy. Today's conviction is an example of the collective efforts of the FBI and our partners to hold accountable those individuals that seek to steal money from taxpayer funded programs.”
Erick Martinez, Special Agent in Charge, IRS – Criminal Investigation, said, “These types of real estate fraud schemes perpetuated on an unsuspecting public are very damaging to our economy. IRS-CI and our law enforcement partners are committed to protecting the integrity of our recovering housing market and the financial system. IRS-CI has the financial investigators and expertise to uncover these complex fraudulent transactions and follow the money trail to expose money laundering activities by these criminals.”
Daoud’s sentencing is set for September 28 at 9:00 am before U.S. District Judge Cynthia Bashant.
Daoud was arrested at Los Angeles International Airport as he prepared to depart for his home country of Norway. Deaibes and another co-defendant, Mazen Alzoubi, were arrested in November 2014 in a related case and charged with mail fraud. Deaibes is scheduled to be sentenced on August 31, 2015. No trial date has yet been set in Alzoubi’s case.
The investigation into this fraud scheme is continuing. Anyone with information relating to these charges or similar scams is encouraged to contact the San Diego FBI Field Office, (858) 320-1800 or the Federal Housing Finance Agency - Office of Inspector General hotline at (800) 793-7724.
DEFENDANT Case Number: 14CR3326-BAS Mohamed Daoud Age: 50 Norway CHARGESConspiracy to launder money, in violation of 18 U.S.C. § 1956(h)
DEFENDANTS PREVIOUSLY CHARGED Mazen Alzoubi, 14CR3325-BAS Age: 31 Rancho Cucamonga, California Daniel Deaibes, 14CR3325-BAS Age: 36 Rancho Cucamonga, California CHARGE
Maximum Penalties: 20 years’ imprisonment, $500,000 fine or twice the value of the property involved in the transaction, $100 special assessment, restitution.Mail fraud, 18 U.S.C. § 1341
INVESTIGATING AGENCIESFederal Housing Finance Agency – Office of Inspector General
Federal Bureau of Investigation
Internal Revenue Service – Criminal InvestigationsAs to defendant Mazen Alzoubi, the public is reminded that the charges are not evidence that the defendant committed the crime charged. The defendant is presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Child Sex Trafficker Gets Ten YearsRead the Press Release
SAN DIEGO – Lamar Moore, a.k.a. “El Brivv,” a.k.a. “Briv,” a twenty-four year-old resident of San Diego, was sentenced today to 120 months in prison for trafficking two minor girls for commercial sex.
In February 2014, Detectives Chris Haughey and Eric Drilling, members of the San Diego Police Human Trafficking Team, rescued a 17-year-old girl from Moore at a local motel. They then arrested Moore.
Moore pleaded guilty on October 9, 2014. In his plea agreement, he admitted that he coerced the rescued 17-year-old, and a second, 15-year-old victim, to engage in commercial sex for his financial benefit. He also provided hotel rooms, condoms, and internet advertisements for their sexual services. Moore received hundreds of dollars in proceeds from the victims’ acts of prostitution.
Moore’s crimes were part of a criminal enterprise which he led that involved two additional minor males, one additional adult male, and two additional adult females. Since his arrest, one of those males – a San Diego resident named Darius Chambers – has also pled guilty to child sex trafficking. Another – San Diegan named Daijon Vailes – has been arrested and charged with the same offense. Chambers will be sentenced on July 31, 2015 by U.S. District Judge Janis L. Sammartino. Vailes entered a plea of not guilty and awaits trial.
United States Attorney Laura Duffy said, “We take these crimes very seriously. If you traffic a child for commercial sex in the Southern District of California, you should expect to spend many, many years in federal prison.”
DEFENDANT Case Number: 14CR1754-AJB Lamar Moore Age: 24 CHARGESChild sex trafficking, in violation of Title 18, United States Code, Section 1591
INVESTIGATING AGENCIES
Maximum penalty: LifeSan Diego Police Department
Former Senior Executive of Qualcomm Sentenced to 18 Months and Fined $500,000 for Insider Trading and Money LaunderingRead the Press Release
SAN DIEGO – Jing Wang, former Executive Vice President and President of Global Business Operations for Qualcomm Inc., was sentenced today to 18 months in prison and fined $500,000 for his role in a three-year insider trading scheme.
Wang, 52, who pleaded guilty in July 2014 to insider trading, money laundering and obstruction of justice charges, was sentenced by U.S. District Judge William Q. Hayes for orchestrating a scheme to trade on the confidential information of Qualcomm and covering up his criminal conduct.
“Jing Wang was a powerful insider at one of the world’s top corporations – but he threw it all away to make a few hundred thousand dollars,” said U.S. Attorney Laura Duffy. “While Wang has lost his power, his position and his freedom, the real losers here are investors who play by the rules, and our nation’s financial system, which is diminished with every one of these schemes.”
“Through his position as a high-ranking executive at Qualcomm, Jing Wang gained unique access to information about the company’s earnings and intended acquisitions and illegally exploited that inside information for personal gain,” said Assistant Attorney General Leslie R. Caldwell. “He then enlisted the services of others – his stock broker and his brother – to cover up the scheme. This prosecution demonstrates the Criminal Division’s commitment to holding accountable corporate executives who would undermine the integrity of the financial marketplace.”
In connection with his plea, Wang admitted that he made three, separate insider trades using a brokerage account in the name of his British Virgin Island (BVI) shell company, Unicorn Global Enterprises. First, in early 2010, prior to Qualcomm’s announcement of a dividend increase and stock repurchase, Wang bought company stock valued at approximately $277,000. He also admitted that, in December 2010, while attending Qualcomm’s Board of Directors meeting in Hong Kong, and hours after the Board approved a non-public offer to purchase Atheros, a developer of semiconductors for wireless communications, Wang purchased stock in Atheros. Wang further admitted that, just a few weeks later, he directed his stockbroker, Gary Yin, to sell the Atheros stock, for approximately $481,000, and purchase Qualcomm stock one day before the company announced record earnings.
Wang also pleaded guilty to money laundering for transferring the illegal proceeds from Unicorn’s account to an account of a new BVI shell company he controlled. He further admitted to obstructing justice by creating a false cover story in which he and co-conspirator Yin would blame Wang’s brother Bing Wang, who resides in rural China, for the insider trading and ownership of the Unicorn Account. Among other acts, Wang collected incriminating evidence and provided it to Yin to take to China, and arranged meetings between Yin and Bing Wang during which the two rehearsed the false account.
Yin pleaded guilty to conspiring to obstruct justice and launder money, and currently is scheduled to be sentenced on July 17, 2015. Bing Wang has been charged in connection with the scheme, and is wanted on an international arrest warrant.
This case was investigated by the FBI’s San Diego Field Office and the Internal Revenue Service-Criminal Investigation’s San Diego Field Division. The SEC’s Los Angeles Regional Office provided substantial assistance. The case is being prosecuted by Assistant U.S. Attorney Eric J. Beste of the Southern District of California and Trial Attorney James P. McDonald of the Criminal Division’s Fraud Section.
DEFENDANT Case Number: 13CR3487-WQH Jing Wang Age: 51 Del Mar, California CHARGESCount 1: Title 15, United States Code, Sections 78j(b), 78ff and 17 C.F.R. § 240.10b-5—Securities Fraud (Insider Trading). Maximum Penalty: 20 years’ custody, a $5 million fine, 3 years’ supervised release, and a $100 special assessment.
Count 2: Title 18, United States Code, Section 1956 – Money Laundering. Maximum Penalty: 20 years’ custody, a fine of $500,000 or twice the value of the property involved in the transaction, 3 years’ supervised release, and a $100 special assessment.
INVESTIGATING AGENCIESFederal Bureau of Investigation
Internal Revenue Service-Criminal InvestigationDrug Trafficker Sentenced to 15 Years in PrisonRead the Press Release
SAN DIEGO – Drug trafficker Juan Castro-Navarro - who a prosecutor contends used his cell phone to document the kidnapping, torture and murder of a man in retaliation for the theft of 10 pounds of methamphetamine - was sentenced in federal court today to 182 months in prison.
According to court documents, Castro, aka “J,” sent photos of the victim in a series of text messages to fellow traffickers and his girlfriend or wife, at one point telling her during one exchange: “I just want you to know that I love you guys and that I’m only going to kill one more. I have never killed anyone who didn’t deserve it. I’ll see you later.”
Upon receiving the images, the girlfriend replied: “What is this? Are you OK? Thank God. Be careful my love. I love you with all my heart.”
In other text exchanges, Castro and other traffickers bent on revenge for the robbery of the methamphetamine used emoticons to express feelings. According to court records, one individual, identified as Pokemon, texted: “Did you beat him or choke him?” Castro replied: “The second.” Pokemon’s response, “Very well,” and then he used a semi-colon and a parenthesis to denote a winking face.
Castro pleaded guilty on January 13, 2015, to conspiracy to distribute over 40 kilograms of methamphetamine and two kilograms of heroin. In furtherance of the conspiracy, Castro admitted that he managed other codefendants in the distribution of methamphetamine and heroin within California, and from California to Utah, Washington and other parts of the United States. He was sentenced today by U.S. District Judge Gonzalo P. Curiel, who granted the government’s request for a sentencing enhancement because of the evidence of violence found on Castro’s cell phone. At the sentencing hearing, Judge Curiel stated that Castro had become a “monster” based on the violence shown in the case, and deemed the narcotics that Castro trafficked within the United States “poison.”
U.S. authorities did not charge Castro with murder because the U.S. government lacked jurisdiction since it appears the victim was not a U.S. citizen and the crime occurred in Tijuana. However, in order to get the sentencing enhancement, the prosecutor filed, among other things, a supplemental sentencing document – a newspaper article. The article from a Tijuana newspaper said that a dead person wrapped in a blanket, wearing a black sweatshirt and jeans and showing signs of beating on his entire body, was found on January 23, 2014 – the day after Castro sent the text messages. The victim in the text message photos had been wearing the same clothing.
In the spring of 2013, HSI agents began investigating Castro and his distribution network. Their investigation indicated that Castro was a narcotics broker who would pair Mexico-based sources of supply with customers outside California, and facilitate the transportation of narcotics to the customers. To further the investigation, in November 2013 court authorization was received to intercept two telephones used by Castro. During the first 30-day period of interception, agents successfully seized 19 pounds of methamphetamine and over two pounds of heroin from a load car leaving a stash house, located in Ontario, California, used by Castro. Following the seizure, based on interceptions indicating that the stash house was being emptied, a court-authorized search was executed at the stash house and agents seized an additional 41 pounds of methamphetamine, $68,850 and three firearms.
According to court documents, in January 2014, interception continued on one of Castro’s telephones. While intercepting Castro’s telephone, agents learned that Castro and codefendant Oscar Ureta-Cervantes, who has also pleaded guilty to conspiracy to distribute methamphetamine and heroin and awaits sentencing, and another individual known as Marlon coordinated the sale of 10 pounds of methamphetamine. Ureta was to deliver the methamphetamine to an individual known as David in Los Angeles. However, on the morning of January 22, 2014, Ureta was robbed of the 10 pounds of methamphetamine. In retaliation and in order to recover the stolen methamphetamine, a gang member associated with David was kidnapped in Tijuana, Mexico by Marlon and other individuals.
After the kidnapping, Castro joined Marlon. Castro then took photographs of the kidnapped victim with his cell phone and sent them to Ureta, and the girlfriend and others. The first photograph shows an individual with a black eye, tied and taped, sitting in a chair with hands behind his back. The victim is wearing a black sweatshirt and green/gray jeans. After Castro sent the first photograph, he sent a message to Ureta, stating: “I’m so f---ing pissed and these people are doing as I say.” In another conversation, Castro informed Ureta that they were “extracting information” from the victim.
In another conversation, Castro informed Ureta: “I haven’t killed him because he says he is going to bring me 20 pieces” [units of narcotics]. Castro then sent another photograph to Ureta. The photograph shows a person wearing a black and white jacket holding down the victim with one knee on the victim’s back as the person pulls on one end of a baseball bat. The victim is face down on a concrete floor with his pants half off. Another person in a blue plaid shirt is holding the victim’s head down. A third person, wearing black boots, is standing nearby holding a baseball bat.
Half an hour later, Castro sent Ureta another photograph of the victim. The photograph shows the victim, face down and naked from the waist down, with a green plastic bag over his head as one person is stepping on the back of the victim’s head, another is holding the victim’s arms behind his back, and a third is stepping on the victim’s legs. The victim’s buttocks show signs of bruising. Castro then stated that the victim was “gone.” Shortly thereafter, Castro admitted via text message to Pokemon, as noted above, that the victim had been choked. Castro then sent Ureta a final photograph of the victim. The last photograph shows a lifeless body, wrapped in a blanket.
During the torture, Castro also sent his girlfriend the photographs described above and several messages, telling her not to worry because he was working. Castro instructed her to “look at it [the first photograph] and erase it,” and further reminded Eloisa “not to forget to erase” their conversations. Then, in the early morning hours of January 23, 2014, Castro messaged his girlfriend: “Open up, Hun,” showing that Castro had arrived home.
DEFENDANT Juan Castro-Navarro Age: 43 Hometown: Culiacan, Sinaloa, Mexico CHARGESConspiracy to Distribute Methamphetamine and Heroin – Title 21, U.S.C., Sections 841(a)(1) and 846
INVESTIGATING AGENCIES
Maximum penalty: Life imprisonment and a mandatory minimum term of 10 years and $10 million fineDepartment of Homeland Security, Homeland Security Investigations (HSI)
Florida Man Convicted of Sex Crimes Against Escondido ChildrenRead the Press Release
SAN DIEGO – Tony McLeod of Tampa, Florida, was convicted by a federal jury this afternoon of multiple counts of sexual crimes against two minors following an eight-day trial before U.S. District Judge Janis L. Sammartino.
A jury deliberated for less than two hours and found McLeod guilty of seven counts of sexual exploitation of a child, one count of attempted sexual exploitation of a child, one count of travel with intent to engage in illicit sexual conduct, and one count of transportation of a minor with intent to engage in criminal sexual activity as to a 14-year-old victim, and one count of attempted sexual exploitation of a child as to a 15-year-old victim. McLeod has been in custody since his arrest in Tampa, Florida in June 2013.
Sentencing is scheduled for September 11, 2015 at 9:00 a.m.
According to evidence presented to the jury, in spring 2013, McLeod struck up a friendship with the minor victims through on-line gaming. These friendships spilled over into phone calls, texts, and video chats between McLeod and the minors in which they discussed their personal lives, including the fact that both minors attended middle school.
Around May of 2013, McLeod’s relationships with the minors turned sexual in nature. The jury found that McLeod engaged in sexual behavior with both minors. Some of this behavior included masturbation and the exchange of sexually explicit photographs and videos.
Both victims testified against McLeod during the trial.
The 14-year-old’s family learned of the illicit relationship, confiscated the minor’s phone and reported the matter to local authorities. In June 2013, McLeod traveled from where he lived in Tampa, Florida to Escondido, California in order to meet up with the child. McLeod picked up the child at school before the end of the school day and took the child to Los Angeles International Airport.
According to testimony at trial, McLeod purchased an airline ticket for the 14-year-old under an alias and they flew to Tampa, Florida. In the meantime, the family reported the minor as missing to Escondido Police Department. The Escondido Police Department tracked down McLeod’s whereabouts and informed the Tampa Police Department that McLeod and the victim (under an alias) were on a flight to Tampa. On arrival of the flight, McLeod was arrested and taken into custody.
McLeod faces a mandatory minimum sentence of 15 years and up to 30 years in prison for each of the sexual exploitation and attempted sexual exploitation counts, a mandatory minimum sentence of 10 years up to life imprisonment for the transportation of a minor for the purpose of engaging in criminal sexual activity count, and a maximum of 30 years for the travel with intent to engage in illicit sexual conduct count.
McLeod’s arrest and prosecution was the result of coordination between multiple federal and state agencies in both San Diego, California and Tampa, Florida. The U.S. Attorney’s Office commends law enforcement from the FBI, Escondido Police Department, and Tampa Police Department who worked tirelessly to collect and preserve evidence as to numerous electronic devices and interview witnesses in order to bring McLeod to justice.
The U.S. Attorney’s Office appreciates the San Diego District Attorney’s Office, the Florida State’s Attorney’s Office, and the U.S. Attorney’s Office for the Middle District of Florida for their involvement in the case at the outset.
DEFENDANT Case Number: 13CR2297-JLS Tony Lee McLeod Age: 38 Tampa, Florida CHARGESTitle 18, United States Code, Section 2221(a) and (e) – Sexual Exploitation of a Child
LEAD INVESTIGATIVE AGENCY San Diego FBI INVESTIGATIVE AGENCIES Escondido Police Department
Title 18, United States Code, Section 2251(a) and (e) – Attempted Sexual Exploitation of a Child
Title 18, United States Code, Section 2423(b) – Travel with Intent to Engage in Illicit Sexual Conduct
Title 18, United States Code, Section 2423(a) – Transportation of a Minor with the Purpose of Engaging in Criminal Sexual Activity
Tampa Police Department
San Diego Regional Computer Forensics Laboratory
San Diego District Attorney’s Office
San Diego Internet Crimes Against Children Task Force
San Diego Sheriff’s Department
Tampa FBI
United States Marshal’s Service Task Force (Tampa)
Tampa International Airport Police
Florida State’s Attorney’s Office
US Attorney’s Office for the Middle District of Florida“Green Cross” Hits Red Light as Owner Admits Fraudulent Use of Doctor’s Name and LicenseRead the Press Release
SAN DIEGO – Nelson Leone, the owner and operator of six San Diego-based medical marijuana clinics, pleaded guilty to identity theft in federal court today, admitting that he forged a doctor’s signature and fraudulently used that doctor’s name and license number in order to issue medical marijuana recommendations.
Leone’s six clinics were located throughout San Diego County in Pacific Beach, Mission Valley, Midway, and El Cajon. He advertised them under the name Green Cross Evaluations in The Reader and on the Internet. These advertisements made it clear that the clinics were set up to be “consumer friendly” with on- site ATM services, accommodations for walk-in patients, and a $25 “new” patient special. According to his website, Leone’s clinics were supposed to provide patients with access to a “licensed physician” that would evaluate them in his clinic for a medical condition.
Five of Leone’s six clinics, however, did not have a licensed medical doctor. Leone (who was stripped of his medical license in 1995) employed a licensed doctor at just one of the six clinics to meet with customers and issue medical marijuana recommendations. In the absence of a licensed physician who could validly evaluate patients, Leone issued medical marijuana recommendations to customers at the other five clinics under his sole doctor’s name and license number. These recommendations falsely certified that the customers were evaluated in the doctor’s office and suffered from a medical condition that “may benefit from the use of medical marijuana.”
U.S. Attorney Laura E. Duffy emphasized that every patient – regardless of whether they’re seeking medical marijuana or other prescription drugs – has the right to have a licensed medical professional advising them on matters that affect their health. “It is simply unacceptable to have someone forge a doctor’s signature for their own personal financial gain.”
As part of his plea, Leone agreed to shut down the six Green Cross Evaluations clinics.
Leone is scheduled to be sentenced on September 14, 2015, at 8:30 a.m. before U.S. District Judge M. James Lorenz.
DEFENDANTS Case Number: 15cr1650-L Nelson Leone Age: 72 San Diego, California CHARGESIdentity Theft – Title 18, U.S.C., Section 1028(a)(7)
INVESTIGATING AGENCIES
Maximum penalty: 5 years’ imprisonment and $250,000 fineDepartment of Homeland Security, Homeland Security Investigations
Man Admits Dumping Raw Sewage on Camp PendletonRead the Press Release
SAN DIEGO - Victor Amezcua, a resident of Winchester, California, pleaded guilty in federal court today to dumping raw sewage on Camp Pendleton.
According to his plea agreement, Amezcua admitted that on at least four occasions during 2013 and 2014, while he was employed at a firm which had a contract to dispose of porta-potty waste from Marine Corps Base Camp Pendleton, he pumped the sewage into a ravine in area 53 on the base. Amezcua acknowledged that he was employed as the driver of a vacuum truck and he was supposed to collect the sewage from the porta-potties and dispose of it in large holding tanks located on the base, which would be later pumped out and their contents disposed of at the sewage treatment plants on base. Instead, Amezcua admitted that he knowingly pumped the contents of his vacuum truck into a ravine in Area 53, without testing the sewage or notifying anyone at the base, as required by federal regulations.
Amezcua is scheduled to be sentenced by U.S. District Judge Larry A. Burns on September 28, 2015, at 9:30 am.
DEFENDANT Case Number: 15cr1645-LAB Victor Amezcua Age: 44 Winchester, California CHARGESCount 1: Unlawful Disposal of Sewage, in violation of 33 U.S.C. § 1319(c)(2)(A) and 1345.
INVESTIGATING AGENCIES
Maximum Penalties: 3 years’ imprisonment, $250,000 fine or $50,000 per day of violation, whichever is greater, a minimum fine of $5,000 per day of violation, $100 special assessment, restitution.U.S. Environmental Protection Agency, Criminal Investigations Division
Naval Criminal Investigative ServiceUnlicensed Money Transmitter Pleads Guilty to Money Laundering ConspiracyRead the Press Release
SAN DIEGO – San Diego-based money transmitter Francisco Cuevas pleaded guilty in federal court today to participating in a money laundering conspiracy.
In a hearing before U.S. Magistrate Judge David H. Bartick, Cuevas admitted that he and coconspirators operated an unlicensed money transmitting business, in criminal violation of the Bank Secrecy Act, and conducted nearly $12 million worth of international financial transactions in an attempt to promote their unlicensed money transmitting business.
According to the plea agreement, Cuevas and his coconspirators operated a commercial enterprise willing and able to transfer cash on behalf of third parties without registering the business with the Secretary of the Treasury, as required by Title 31, United States Code, Section 5330. In turn, the defendants’ customers availed themselves of Cuevas’ services, and those of his alleged co-conspirators, to collect cash anywhere throughout the United States, and transmit it anywhere in the world. The defendants obtained commissions for their services, extracting a fee from the millions of dollars transmitted abroad.
The criminal case is assigned to U.S. District Court Judge Roger T. Benitez (14cr2936). Judge Bartick allowed Cuevas to remain on pretrial release, pursuant to the terms of a bond posted by Cuevas. Cuevas is scheduled to be sentenced on September 21, 2015 at 9 a.m. before Judge Benitez.
DEFENDANT Case Number: 14cr2936 Francisco Cuevas Age: 38 CHARGESMoney Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
INVESTIGATING AGENCIES
Maximum penalty: 20 years’ imprisonment, $500,000 fine, and forfeitureFederal Bureau of Investigation
Drug Enforcement Administration
Internal Revenue ServiceConspirators Charged with Defrauding Medicare of Millions Using El Centro ClinicRead the Press Release
SAN DIEGO – United States Attorney Laura E. Duffy announced the unsealing of a 24-count indictment today against four defendants for a conspiracy to unlawfully enrich themselves with millions of dollars by submitting fraudulent claims to Medicare for tests allegedly performed at the El Centro Medical Clinic in El Centro, California (“El Centro Clinic” or “Clinic”). The announcement was made in conjunction with a nationwide Medicare Fraud Takedown executed around the country.
The indictment alleges that defendants Paul Robinson, Levon Tovmassian, Hasmik Senekerimyan, and Nazar Muradyan, conspired with Gevorg Kupelian and others to commit health care fraud and pay kickbacks for Medicare patient referrals. Kupelian – who already pleaded guilty and was sentenced in a related case (Case Number 14CR3419-BAS) -- opened the El Centro Clinic and acted as its organizer and leader. He has admitted he recruited a doctor to serve as a “front” for the Clinic in order to use his Medicare billing number to submit fraudulent Medicare claims. Kupelian also admitted he recruited and paid “cappers” to find senior citizens in El Centro and convince them to go to the Clinic for a gauntlet of tests without justification or proper supervision by a physician.
The indictment alleges that Robinson, a licensed physician, acted as the nominal owner of the El Centro Clinic and that the conspirators submitted claims for the treatment of more than 1,100 Medicare beneficiaries under Robinson’s Medicare billing number between September 2012 and February 2014. The El Centro Clinic generated over $2.7 million in claims to Medicare, which resulted in payments of approximately $1.3 million to Robinson. Robinson is accused of paying 75% of the Medicare reimbursements to Kupelian. Kupelian, in turn, paid Tovmassian, Senekerimyan, Muradyan, and others for various activities and claims designed to make the Clinic appear to be a legitimate medical service provider. Robinson is also charged with obstructing a federal audit by submitting falsified and misleading medical records.
Tovmassian, the indictment alleges, was hired to pose as a Physician’s Assistant (“PA”) who saw and treated patients at the Clinic despite not having the requisite license from the State of California. Tovmassian also allegedly ordered unnecessary medical tests that were billed to Medicare under Robinson’s billing number. Additionally, Tovmassian is charged with making a false statement to one of the investigating agents.
Senekerimyan is accused of completing fraudulent allergy test order forms and falsely claiming to administer allergy tests at the El Centro Clinic. Her husband, Muradyan, is charged with falsely claiming to drive Senekerimyan from their home in North Hollywood, California to the El Centro Clinic several times a week for her to administer allergy tests when, in fact, no tests were ever performed. Senekerimyan and Muradyan are also charged with obstructing a health care crime investigation.
“Health care fraud remains a pervasive and destructive trend nationwide, cheating our nation’s taxpayers outs of millions that could be put to better use,” said U.S. Attorney Laura Duffy. “In conjunction with our colleagues nationwide, we will continue to diligently investigate and prosecute these crimes on the nation’s behalf.”
“Aggressively combating health care fraud continues to remain a top priority of the FBI,” said San Diego FBI Special Agent in Charge Eric Birnbaum. “These indictments demonstrate that utilizing senior citizens as pawns in schemes to defraud Medicare will not be tolerated. The FBI remains committed to working with our partners in order to ensure that Medicare, which provides health care to our nation’s elderly, will be there when they need it the most.”
On April 6, 2015, U.S. District Court Judge Cynthia Bashant sentenced Kupelian to 30 months’ of custody and ordered he pay restitution in the amount of $964,011. Kupelian is currently scheduled to self-surrender on July 8, 2015. The defendants will be summoned to appear before U.S. District Court Judge Cathy Ann Bencivengo for an arraignment on the indictment.
DEFENDANTS Case Number: 15CR1572-CAB Paul Robinson Age: 52(Counts 1-20)
Levon Tovmassian Age: 51 (Counts 1, 3-4, 8-13, 21)Hazmik Senekerimyan
Age: 46 (Counts 1, 4, 8-9, 11-12, 15-18, 22-23) Nazar Muradyan Age: 50 (Counts 1, 24) SUMMARY OF CHARGESCount 1: Title 18, United States Code, Sections 371 (Conspiracy to Commit Health Care Fraud and Pay Remuneration for Health Care Referrals)
Maximum penalty: 5 years of custody; $250,000 FineCounts 2-19: Title 18, United States Code, Sections 1347 (Health Care Fraud)
Maximum penalty: 20 years of custody; $250,000 FineCount 20: Title 18, United States Code, Sections 1516 (Obstruction of Federal Audit)
Maximum penalty: 5 years of custody; $250,000 FineCount 21: Title 18, United States Code, Sections 1001 (False Statement)
Maximum penalty: 5 years of custody; $250,000 FineCounts 22-24: Title 18, United States Code, Sections 1518 (Obstructing a Health Care Crime Investigation)
Maximum penalty: 5 years of custody; $250,000 Fine*The charges and allegations contained in the Indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Campaign Aide Admits to Launching False Federal Investigation Aimed at Discrediting Congressional CandidateRead the Press Release
SAN DIEGO – Former Carl DeMaio campaign staffer Todd Bosnich pleaded guilty to obstruction of justice in federal court today, admitting that he instigated and impeded an FBI investigation by sending a threatening email to himself and falsely claiming that it was likely from DeMaio.
Bosnich, who served as policy director for the unsuccessful congressional campaign, made the admissions before U.S. Magistrate Judge Jan Adler. Bosnich was allowed to remain free on a $10,000 bond and was ordered to appear for sentencing on August 31, 2015, at 9 a.m. before U.S. District Judge Larry A. Burns.
Assistant U.S. Attorney Phil Halpern told the court during today’s hearing that Bosnich’s offense “had the potential to effect a national election.” He added: “Mr. Bosnich, for whatever reason, had a great deal of hostility and personal animus towards Mr. DeMaio. As a result of his feeling aggrieved, Bosnich wanted to get back at Mr. DeMaio.”
According to his plea agreement, after he was terminated from his job in May of 2014, a disgruntled Bosnich made sexual harassment accusations against DeMaio. Among other things, he claimed that DeMaio offered him $50,000 in hush money to keep quiet about the harassment.
Bosnich also told a radio reporter during an interview on June 2, 2014 that he had received threatening emails from an anonymous source that he was “positive” were from DeMaio or someone closely associated with DeMaio.
According to his plea agreement, Bosnich admitted that three days later, on June 5, 2014, Bosnich set up a dummy yahoo email account, [email protected], from his North County residence using bogus personal information including a false date of birth and gender. According to his admissions, he then sent a “particularly ugly and threatening message” to his own personal email account. The email suggested that the “anonymous” author of the email would ensure that Bosnich never again worked in politics if he didn’t stop making accusations against DeMaio.
During multiple interviews with the FBI, Bosnich – supposedly the victim of threatening emails - continued to claim that he did not know who sent the emails, but he believed DeMaio was behind the anonymous threats. Based on these false claims, a grand jury issued subpoenas attempting to identify the source of the emails. All the while, it was Bosnich himself who had sent the emails.
“The integrity of the American electoral process is the very bedrock of our democracy,” said U.S. Attorney Laura E. Duffy. “These actions were far from a harmless prank and cannot be tolerated.”
FBI Special Agent in Charge Eric S. Birnbaum commented, “Mr. Bosnich engaged in a pattern of lies and deceitful acts in an effort to obstruct FBI agents from getting to the truth in this case. Even when given opportunities to recant his statements he continued to knowingly provide false information portraying himself as a victim in this matter and giving the appearance that a candidate running for office was behind the threatening emails. Today’s conviction sends a clear message that the FBI will aggressively investigate and pursue prosecution of those who attempt to obstruct federal investigations and illegally undermine our electoral process.”
The background of Bosnich’s obstruction was detailed in Court documents, which recalled how DeMaio announced his intention to run for California's 52nd Congressional District in May 2013 (the year before the actual election). In October 2013, Bosnich was hired by DeMaio's campaign to serve as its Policy Director.
In May 2014, Bosnich was terminated by DeMaio’s campaign. The reason for his termination, as well as the events that occurred immediately before and after his termination, are a matter of dispute. Bosnich claimed that DeMaio made a series of unwanted sexual advances towards him in the Spring of 2014, and that when he complained to DeMaio’s campaign manager, he was first marginalized and later offered a $50,000 “payment” in exchange for signing a “non-disclosure” agreement
As revealed in the pleadings, the DeMaio campaign maintained that Bosnich was terminated not because of a sexual harassment claim, but because of poor work performance. Specifically, the campaign asserted that Bosnich was first terminated as a paid employee because he issued a report to the media that was both inaccurate and plagiarized. The campaign then alleged that Bosnich (on May 24, 2014) was barred from working in any capacity because he “misappropriated” several internal emails. Finally, the Campaign asserted that Bosnich vandalized its campaign headquarters (on May 28, 2014) after he had been fired for cause.
Sometime between the late evening of May 27, 2014, and the early morning of May 28, 2014, an intruder at DeMaio’s campaign headquarters cut telephone cords, broke laptop computers, damaged office equipment, and stole several items from the office. Among the items stolen was a notebook containing sensitive campaign information, as well as the office’s cable modem and router.
On May 29, 2014, Bosnich wrote several emails to the Chief-of-Staff for DeMaio’s opponent, Scott Peters. Bosnich initiated contact by sending several internal DeMaio campaign emails that he received during his time serving as the Campaign’s Policy Director. He also reiterated his claim that DeMaio had sexually harassed him and threatened to destroy him if he did not stay quiet about the harassment.
On May 31, 2014, the Peters’ Campaign chief of staff delivered the emails received from Bosnich to the San Diego Police Department (“SDPD”). She told the SDPD that the emails arrived unexpectedly and she decided to give them to the police because: (1) they included allegations regarding possible threats and sexual harassment; and (2) she thought there might be some connection between Bosnich’s emails and the recent burglary of the DeMaio campaign office.
Later that same day, SDPD detectives interviewed Bosnich, who denied any involvement in the burglary. To the contrary, Bosnich told the detectives: (1) he had been harassed by DeMaio on a number of occasions; (2) that he complained to DeMaio’s campaign manager about the harassment; and (3) the campaign manager offered Bosnich a job with the San Diego Republican Party if he would keep silent. In addition, Bosnich stated that he was informed that his career would be destroyed if he spoke to anyone about DeMaio’s harassment.
On June 2, 2014, Bosnich recorded an interview with a local radio personality. During the interview, he repeated the allegations he had previously told the detectives. He also stated for the first time that he had received threatening emails. Although these emails were allegedly anonymous, Bosnich stated that he was “positive” that DeMaio (or someone closely associated with DeMaio) was behind the threats. Subsequently, Bosnich repeated his allegations (including the allegedly anonymous threats) to an increasingly wide array of news media outlets.
On June 5, 2014, Bosnich set up the “dummy” Yahoo email account. After doing so, he used it (for the first and only time) to send a particularly ugly and threatening message to his own personal email account. The email referenced Bosnich’s disclosures to Peters’ chief of staff and suggested that the “anonymous” author of the email would ensure that Bosnich never again worked in politics if he didn’t stop making accusations against DeMaio.
Bosnich admitted in federal court that his main purpose in sending the threatening email to himself was to bolster his claims that DeMaio was threatening him to remain silent about the alleged sexual harassment. In this fashion, Bosnich’s claims about DeMaio’s sexual harassment appeared not only to be legitimate, but to take on a new and, perhaps, more sinister context. The SDPD was sufficiently concerned about the serious nature of the allegations that they notified the FBI.
On June 16, 2014, FBI agents and Halpern interviewed Bosnich in the presence of attorneys that he retained to prepare the filing of a sexual harassment suit against DeMaio. At the meeting, Bosnich reiterated his prior sexual harassment allegations against DeMaio. In an attempt to influence the investigation of DeMaio, Bosnich also falsely claimed that an anonymous source sent him the threatening email from the “elimanagment” account. Bosnich also speculated that the author of the emails was DeMaio or someone associated with his campaign.
During the late summer and early fall, the United States acted upon the false information provided by Bosnich in following up all available leads related to the threatening email. Rather than recant his false statements at an October 17, 2014 meeting with the FBI Agents and Assistant U.S. Attorneys, Bosnich continued to conceal the fact that he was the author of the threatening email. He also continued to suggest that the email might have been sent by DeMaio or one of his close associates.
Documentation: Information... Plea Agreement...
DEFENDANTS Case Number: 15cr1544-LAB Todd Bosnich Age: 29 Del Mar, California CHARGESObstruction of Justice – Title 18, U.S.C., Section 1512
INVESTIGATING AGENCIES
Maximum penalty: 20 years’ imprisonment and $250,000 fineFederal Bureau of Investigation
Day Trading Broker Steals More Than $6 Million from Investors in Long Running Ponzi SchemeRead the Press Release
SAN DIEGO – Stock broker Sunil Sharma of Carlsbad pleaded guilty in federal court today, admitting that he stole more than $6 million from local investors by falsely claiming their funds were safe through conservative investments when, in reality, he was pursuing a risky day trading strategy that ultimately turned into a massive Ponzi scheme.
According to his plea agreement, Sharma covered up the massive losses by continuing to falsely tell investors that their investments were doing well. He would send his investors monthly or quarterly statements that falsely reflected that their investments were generating the promised returns. Sharma admitted that even while reassuring investors, he diverted approximately $2.5 million in investor funds for his own personal use, including: (1) approximately $700,000 towards the down payment of a $2 million home off Artesian Road in San Diego; (2) approximately $12,000 for a cruise in the Mediterranean; and (3) for leasing a Mercedes SL and a BMW.
As revealed in court documents, Sharma was a Series 7 licensed broker, who had worked for Merrill Lynch, AG Edwards, and as an independent broker for Raymond James. In 2000, Sharma moved to San Diego where he continued to practice as an independent broker. Due to the market crash that followed September 11, 2001, Sharma and his clients lost a substantial amount of money. As a result, Sharma voluntarily gave up his license to act as a securities broker.
After relinquishing his broker’s license, Sharma began to work in the insurance industry. In 2002, Sharma sold insurance from his business in Rancho Bernardo. He also began teaching seminars highlighting various types of insurance and annuities which could be purchased by his clients.
In 2007, Sharma attended an “Investools” workshop that convinced him that he could make money trading stock options in a conservative manner. After attending the workshop, he set up Gold Coast Holding, LLC (“Gold Coast”) as a vehicle to trade options. Sharma initially funded Gold Coast with approximately $50,000 of his own money that he had made selling insurance. Utilizing a bull and bear spread analysis, Sharma experienced “beginners luck” and began generating profits of more than 10% on his investment by late 2007.
Due to the fact that his insurance clients were making very little money on their personal investments due to low interest rates, Sharma believed that they could make a better return (somewhere in the “neighborhood” of 5%-6%) if he could “day trade” their money and “pocket the difference.” Recognizing that his insurance customers would not have given him money for this venture, he lied to them and falsely stated that Gold Coast was an extremely safe way to earn a monthly retirement income because their money was to be: (1) part of a diversified portfolio; (2) pooled with many other investors; (3) used to buy bonds from emerging markets in Brazil, Russia, India, and China (“BRIC”); and (4) managed by Goldman Sachs. Sharma guaranteed investors a rate of return (typically between 6%-7%) for two to three years and urged his clients to liquidate their retirement accounts and annuities based upon the safety of his investment scheme.
Although Sharma initially planned on buying BRIC bonds with half the investor funds and day trading with the other half, he never in fact purchased BRIC or any other type of bonds. Instead, Gold Coast Holding (and later a second company he established, Safe Harbor Tax Lien Acquisitions) day traded options using TDAmeritrade’s “thinkorswim” trading platform. Between January 2008 and November 2014, Sharma raised $8.36 million from 32 different clients using these two companies. In order to attract new investors, Sharma paid $2.12 million in “returns” to old clients from funds generally derived from the contribution of later investors. For example, of the approximately $3.5 million raised from investors in the first two years of day trading, Sharma – despite some early successes – was left with only about $250,000 by the end of 2009. As a result, Sharma turned Gold Coast into a classic “Ponzi scheme” by paying earlier investors their guaranteed rates of return with approximately $5 million in new funds solicited from later investors.
Prior to the investment scheme collapsing completely, Sharma stopped trading option spreads and switched over to purchasing straight “call” and “put” options. It was Sharma’s hope that adopting this new strategy would allow him to recoup all of his investment losses. Once again, however, Sharma’s strategy proved disastrous. Although he was able to make his December 2014 monthly payout to investors, he ran out of funds in January 2015.
United States Attorney Laura E. Duffy acknowledged that this Ponzi scheme was a bit harder to detect than usual as Sharma did not promise his investors outlandish returns. Nevertheless, she warned all investors to ensure that individuals soliciting money have appropriate licenses and audited financial statements. “All investors – especially when they are dealing with their retirement savings – must exercise due caution before turning over money even to long-time friends or else what appears to be a safe harbor might turn into a ship wreck.”
FBI Special Agent in Charge Eric S. Birnbaum commented, “Mr. Sharma's short term gains have resulted in long term losses for his victims. This case serves as a reminder to ask questions and conduct your own due diligence before investing your hard earned money with any broker or investment fund.” The defendant is scheduled to be sentenced by U.S. District Judge John A. Houston on August 24, 2015 at 8:30 a.m.
DEFENDANTS Case Number: 15cr1396 Sunil Sharma Age: 68 Carlsbad, California CHARGESWire Fraud, in violation of 18 U.S.C. § 1343.
INVESTIGATING AGENCIES
Maximum Penalties: 20 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, restitution.Federal Bureau of Investigation
CFO Embezzles Hundreds of Thousands of Dollars from Charity to Fuel Lavish LifestyleRead the Press Release
SAN DIEGO – Former Chief Financial Officer Nancy Johnson and Accounts Payable Clerk Tamara Azizov pled guilty today and admitted using their positions in entirely separate schemes to steal hundreds of thousands of dollars from the Lawrence Family Jewish Community Center (“JCC”) located in La Jolla, California.
Johnson served as the JCC’s Chief Financial Officer (“CFO”) from April 1991 to April 2014, overseeing its $13 million annual budget. As CFO, Johnson had access to the JCC’s bank accounts, credit card accounts, and bookkeeping records. Johnson used her access (between 2008 and April 2014) to misappropriate $412,289.64, which she used for a variety of purchases including: a stay at the Grand Wailea Resort in Maui; airfare to the Bahamas; Jimmy Choo footwear; tickets to the ESPN X Games; and dinners at upscale eateries such Ruth’s Chris Steakhouse.
As detailed in Court, at the same time Johnson was embezzling funds to pay for lavish vacations and designer clothing, she claimed that the JCC could not afford the numerous programs and activities offered to the community. In fact, Johnson ordered JCC department heads to reduce expenses to make up for the hundreds of thousands of dollars she was siphoning off from the JCC coffers. Moreover, due in part to the embezzlement, the JCC was forced to cut personnel in order to balance its budget.
Azizov served as an Accounts Payable Clerk from June 1989 to May 2014. In this position, she also had access to the JCC’s bank accounts, credit card accounts, and bookkeeping records. In an entirely separate scheme unknown to Johnson, Azizoz misappropriated $154,192.74, which she also used for a variety of purchases, including: Tom Ford sunglasses; $1,820 for sushi at Zip Fusion; Simone Pérèle lingerie; and thousands of dollars’ worth of clothing from Neiman Marcus, Nordstrom, and Anthropologie. Both Johnson and Azizov continued their thefts until leaving the JCC in the spring of 2014.
Johnson and Azizov were able to carry out the embezzlement by virtue of their access to the full range of the JCC’s financial records and accounts. On most occasions, they would simply use the JCC’s credit cards to make personal purchases. In order to fool the JCC’s executive staff, auditors, and bookkeepers, they both (without knowledge of the other) falsely characterized their purchases as legitimate JCC expenses. At the end of the year, Johnson would then allocate her personal expenses to the JCC departments that had not exceeded their budgets.
The JCC was founded in 1945 and promotes the continuity and vibrancy of the Jewish community by offering social, cultural, educational, and recreational programs and services. The JCC operates, among other things, a preschool, a center for senior citizens, and one of the largest single-site summer day camps in California. Each year, thousands of community members attend the JCC’s San Diego Jewish Film Festival and the San Diego Jewish Book Fair.
As part of their pleas, Johnson and Azizov will be required to pay the JCC the funds they stole. Johnson’s next court appearance is on August 28, 2015, at 9 a.m. before U.S. District Judge Dana M. Sabraw. Azizov’s next court appearance is on Sept. 11, 2015, at 10 a.m. before Chief U.S. District Judge Barry T. Moskowitz. Johnson and Azizov will appear for sentencing as well as a hearing to determine the amount of restitution.
“San Diego has many fine charitable institutions like the JCC,” said U.S. Attorney Laura E. Duffy. “I will do everything in my power to insure that individuals who donate to these charities know that their funds are going to be used in an appropriate manner.” FBI Special Agent in Charge, Eric S. Birnbaum commented, "While the FBI investigates many types of fraud, when charitable organizations are victimized by those it entrusts to safeguard its assets, it is profoundly disturbing. The defendants in this case stole money intended to help children and senior citizens to indulge their lavish lifestyles. The FBI remains committed to pursuing those who abuse their position of trust to unlawfully enrich themselves."
Erick Martinez, Special Agent in Charge of IRS Criminal Investigation said, “The defendants misappropriated funds from a local community center designed to enrich the lives of those it served. IRS Criminal Investigation will not stand still while criminals line their pockets with illicit proceeds while community programs go underfunded. The defendants have overstepped their bounds feeling entitled to these funds.”
DEFENDANT Case Number: 15cr1446-DMS Nancy Johnson Age: 59 Escondido, California DEFENDANT Case Number: 15cr1447-BTM Tamara Azizov Age: 62 San Diego, California CHARGESWire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: 20 years’ imprisonment and $250,000 fineFiling a False Tax Return – Title 26, U.S.C., Section 7206(1)
INVESTIGATING AGENCIES
Maximum penalty: 3 years’ imprisonment and $250,000 fineFederal Bureau of Investigation
Internal Revenue Service, Criminal InvestigationAlien Smuggler Who Falsified His Military Record Ends up with 30 Months in the Federal BrigRead the Press Release
SAN DIEGO – After a six week continuance to investigate this military record, Defendant Scotty Kamakahohie White was sentenced by Judge Jeffrey T. Miller to 30 months in federal prison and three years of supervised release for his role smuggling an Alien into the United States.
At his initial sentencing hearing on April 17, 2015, White claimed to have served with the United States Army from 2001 until 2006, and to have received an honorable discharge at the rank of Sergeant after three separate tours of duty in Iraq. At that time, Judge Miller told White that his honorable service to the United States in a time of war would be a major consideration in his favor at sentencing. After his record was questioned by the Government, the Court continued the sentencing hearing so that White’s military records could be reviewed.
As revealed today in Court, White’s military record was very different from what he had claimed. Rather than serving for five years with three total tours of duty in a war zone, White served less than 10 months. Moreover, he had not been involved in any combat operations and was discharged as a Private E-1, not a Sergeant. When confronted with his actual military record, White admitted that he actually had gone AWOL and been kicked out of the Army without ever once setting foot in Iraq. With his false statements exposed, White agreed to not oppose a 30-month sentence for his crimes.
DEFENDANTS Case Number: 15cr0028-JM Scotty Kamakahohie White Age: 30 Parker, Arizona CHARGESTransportation of Aliens – Title 8, U.S.C., Section 1324(a)(1)(A)(ii)
INVESTIGATING AGENCIES
Maximum penalty: 10 years’ imprisonment and $250,000 fineUnited States Border Patrol
Chula Vista Man Guilty of International Trafficking in over $100,000 Worth of Counterfeit World Cup JerseysRead the Press Release
SAN DIEGO – This afternoon Clemente Leon of Chula Vista pled guilty to selling hundreds of thousands of dollars’ worth of counterfeit World Cup soccer jerseys over the internet.
In pleading guilty, Leon admitted that in August of 2013, approximately four months after he began importing soccer jerseys and other clothing from China, he received a Cease and Desist letter from Nike. Leon acknowledged that after learning that the jerseys were counterfeit, he nonetheless continued to import the counterfeit soccer jerseys, and then placed counterfeit World Cup team patches and stencils with the names of World Cup players on the backs of the jerseys, in his garage in Chula Vista. Leon admitted that he sold the jerseys bearing the unauthorized and counterfeit trademarks throughout the United States over the internet on his own website, www.playerasfutbol.com, and via Amazon.com, and received payment via PayPal and other means. Leon agreed that the value of the counterfeit goods he sold was between $120,000 and $320,000. As part of his plea, he agreed to forfeit $50,000 of proceeds from the sale of the counterfeit jerseys.
Leon is scheduled to be sentenced on August 17, 2015, at 8:30 a.m. before the Hon. John A. Houston, United States District Court Judge.
DEFENDANTS Case Number: 15cr1326-JAH Clemente Leon Age: 37Chula Vista, California
CHARGESImportation Contrary to Law—Title 18, United States Code, Section 545
INVESTIGATING AGENCIES
Maximum penalty: 20 years’ imprisonment and $250,000 fineHomeland Security Investigations
High-ranking Sinaloa Cartel Member Admits to Drug Trafficking and ViolenceRead the Press Release
SAN DIEGO – Jose Rodrigo Arechiga-Gamboa, also known as “Chino Antrax,” pleaded guilty in federal court today, admitting that as a high-level member of the Mexico-based Sinaloa Cartel he and his co-conspirators coordinated the transportation of tons of cocaine and marijuana into the United States and ordered or participated in cartel-related violence. He also agreed to forfeit $1 million in drug-trafficking proceeds.
Arechiga-Gamboa, 34, entered his plea before U.S. District Judge Dana M. Sabraw to a superseding information charging him with conspiracy to import cocaine and marijuana into the United States. Arechiga-Gamboa faces a maximum term of life in prison when he is sentenced on October 16, 2015 at 1:30 p.m. before Judge Sabraw.
According to his plea agreement, Arechiga-Gamboa admitted that the Sinaloa Cartel uses violence and threats to intimidate rival cartels, and that he himself was “a direct participant in, and communicated to other members of the Sinaloa Cartel, orders to commit acts of violence or threats of violence.”
As set forth in an indictment in a related case, the Sinaloa Cartel operates across multiple continents and countries, importing large quantities of narcotics into Mexico from Asia and Central and South American countries including Colombia, Ecuador, Venezuela, Peru, Panama, Costa Rica, Honduras and Guatemala.
The Sinaloa Cartel moves drugs by land, air, and sea, including cargo aircraft, private aircraft, submarines and other submersible and semi-submersible vessels, container ships, supply vessels, go-fast boats, fishing vessels, buses, rail cars, tractor trailers, trucks, automobiles, and private and commercial interstate and foreign carriers, according to the indictment.
Those narcotics are then smuggled across the international border to San Diego via automobiles, tractor trailers, trucks, fishing vessels and tunnels and stored at various stash houses, safe houses and warehouses in San Diego County. The narcotics are transported and distributed from there to locations throughout the United States.
“Chino Antrax is one of the highest-ranking Sinaloa Cartel kingpins ever prosecuted in the United States,” said U.S. Attorney Laura Duffy. “While we know that the world’s most powerful drug syndicate continues to operate, we also know that it is under intense pressure after a succession of high-impact, high-profile arrests and indictments of the organization’s highest-ranking players.”
“This plea today marks the end of a reign of terror that this particular violent enforcement arm of the Sinaloa Cartel has inflicted on innocent people both in Mexico and the United States,” says DEA San Diego Special Agent in Charge William R. Sherman. “Jose Rodrigo Arechiga-Gamboa, aka: Chino Antrax was the head of this violent group under the powerful Sinaloa Cartel. Once again, DEA commits to hunting down the remaining members of this weakening cartel and making sure the public is safe from any more drug related violence.”
Arechiga-Gamboa’s arrest and guilty plea come in spite of significant efforts by him to elude capture.
A federal grand jury in San Diego returned an indictment on December 20, 2013, charging Arechiga-Gamboa with Conspiracy to Distribute Controlled Substances Intended for Importation and Conspiracy to Import Controlled Substances. That same day, the Clerk of the Court issued a sealed warrant for his arrest.
Arechiga-Gamboa was arrested on December 30, 2013, at the Schiphol Airport in Amsterdam, Netherlands at the request of the United States. Arechiga-Gamboa was taken into custody at the airport traveling under a fraudulent name, “Norberto Sicairos-Garcia,” as he deplaned a KLM flight from Mexico City, Mexico to Amsterdam. The United States made formal requests for assistance from foreign authorities via a provisional arrest warrant and an Interpol Red Notice.
According to formal documents filed in support of Arechiga-Gamboa’s extradition from the Netherlands, Arechiga-Gamboa is alleged to have worked for the Sinaloa Cartel as a bodyguard and the leader of an enforcement group called “Los Antrax.” In this position, he assisted the Sinaloa Cartel by providing security for narcotics shipments and conducting enforcement operations.
According to extradition documents, Arechiga-Gamboa later rose to become one of the highest-level leaders of the Sinaloa Cartel. Despite traveling under a fraudulent Mexican passport by assuming the identity of a deceased individual, undergoing significant plastic surgery and attempting to alter his fingerprints, U.S. law enforcement officials were able to confirm Arechiga-Gamboa’s identity through forensic techniques. A Dutch Court considered the extradition request and, on May 28, 2014, ordered that Arechiga-Gamboa be extradited to the United States to stand trial on the narcotics trafficking offenses. Arechiga-Gamboa was extradited to the United States on July 11, 2014 and arrived at San Diego International airport under heavy security.
The investigation and prosecution of Arechiga-Gamboa was conducted by agents with the Drug Enforcement Administration in San Diego, along with federal law enforcement from numerous other agencies. It was also conducted in close coordination with DEA agents in Chicago and the United States Attorney’s Office for the Northern District of Illinois.
DEFENDANT Case Number: 13-CR-4517-DMS Jose Rodrigo Arechiga-Gamboa, aka “Chino Antrax,”
aka “Norberto Sicairos-Garcia” Age: 34 CHARGESConspiracy to Import 5 kilograms and more of cocaine and 1,000 kilograms and more of marijuana into the United States, in violation of Title 21, United States Code, Sections 952, 960 and 963.
Maximum Penalties: Life in prison and a mandatory minimum of 10 years; a maximum $10 million fine; forfeiture of all property constituting or derived from proceeds obtained as a result of the violation and all property used or intended to be used to commit the violation.
INVESTIGATING AGENCIESDrug Enforcement Administration
Customs and Border Protection Office of Field Operations
Customs and Border Protection Office of Border Patrol
Internal Revenue Service
United States Attorney’s Office, Northern District of Illinois
Department of Treasury, Office of Foreign Asset Control
Department of Justice, Office of International Affairs
InterpolSan Diego Storage Company Agrees to Pay $170,000 to Settle Justice Department Allegations That It Unlawfully Sold Navy Servicemembers’ BelongingsRead the Press Release
SAN DIEGO – Across Town Movers, a San Diego-based storage company, and its owner, Daniel E. Homan, have agreed to pay nearly $170,000 to resolve allegations by the Department of Justice that it unlawfully sold U.S. Navy service members’ stored goods.
The settlement resolves a lawsuit filed in March by the U.S. Attorneys’ Office for the Southern District of California and the Department of Justice’s Civil Rights Division. The lawsuit alleged that Across Town Movers had a practice of selling active-duty service members’ storage lots without obtaining necessary court orders.
The lawsuit was filed under the Servicemembers Civil Relief Act (“SCRA”), which protects the rights of service members while on active duty by suspending or modifying certain civil obligations. Under the SCRA, a storage lien may not be enforced against service members during, or 90 days subsequent to, their period of military service without a court order.
Among the aggrieved service members is Master Chief Petty Officer Thomas E. Ward, now retired, who will receive $150,000 as compensation for his auctioned personal property. A long-time car enthusiast and 30-year veteran, Master Chief Ward placed his valuable car parts and many household items into storage when he was deployed overseas. He entrusted Across Town Movers to keep his personal property safe until he returned to his home in San Diego. Just before completing his final tour, Master Chief Ward learned that Across Town Movers had auctioned all of his stored personal property, including rare, vintage car parts, without providing any notice or obtaining a court order. Moreover, Across Town Movers allegedly continued to collect payment of storage fees from the government after it sold Master Chief Ward’s goods.
“Federal law protects our military service members and their dependents from businesses taking certain adverse actions against them. These protections permit service members to devote their full attention to defending the United States,” said U.S. Attorney Laura E. Duffy. “While Master Chief Ward was overseas focusing on defending our country, he understandably did not expect the very company paid to safeguard his valuable property to instead auction it off in his absence. Across Town Movers’ $150,000 payment provides Master Chief Ward the opportunity to repurchase his lost goods.”
“This settlement will not only provide relief to ten service members, but also will ensure that business practices change to better protect others,” said Acting Associate Attorney General Stuart F. Delery. “I want to thank the United States Navy for referring this case to the Department of Justice. I’m hopeful that through the department’s newly created Servicemembers and Veterans Initiative, we will continue to build on our strong ties with federal partners and protect the rights of all the brave men and women who serve in our Armed Forces.”
“We hope that this consent order will send a clear message to all storage companies that before they auction off anyone’s belongings, they should check the Defense Department’s military database and their own files to see if the customer is protected by the Servicemembers Civil Relief Act,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division. “The Department of Justice is committed to protecting the rights of the men and women who serve in our Armed Forces, and we will continue to devote time and resources to make sure that they are given the legal protections they deserve.”
Across Town Movers must also compensate other aggrieved service members for unlawfully auctioning their goods.
Furthermore, as part of the settlement, a consent order has been entered that requires Across Town Movers to make systemic changes to its business practices, including developing new policies and procedures consistent with the SCRA and providing SCRA training to its employees. Across Town Movers is enjoined from engaging in future SCRA violations.
A consent order incorporating the terms of this settlement was issued in the Southern District of California. This matter resulted from a referral to the Justice Department by the U.S. Navy.
Service members and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
This matter is being handled by Assistant U.S. Attorneys Dylan M. Aste and Leslie M. Gardner, and an attorney from the Civil Rights Division.
U.S. Border Patrol Supervisor Admits Placing Hidden Camera in Women’s Restroom to Videotape Female Private PartsRead the Press Release
SAN DIEGO – U.S. Supervisory Border Patrol Agent Armando Gonzalez pleaded guilty in federal court today to one count of making a false statement to a federal officer and seven counts of video voyeurism, admitting that he placed a hidden camera in a floor drain of the women’s restroom at the Chula Vista Border Patrol station to capture images of female private parts.
Gonzalez, a supervisor, also admitted that when Border Patrol superiors confronted him about the camera, he lied to cover up his crimes, saying that he’d placed the camera in the bathroom to conduct a drug investigation of one of his female employees. Gonzalez made the admissions in a hearing before U.S. Magistrate Judge Jill L. Burkhardt. Sentencing is scheduled for August 17, 2015 at 9 a.m. before U.S. District Judge Roger T. Benitez.
According to the plea agreement, Gonzalez acknowledged that he captured video images of the unclothed private parts of seven women – all federal employees - who used the bathroom between July 24, 2013 and April 11, 2014. The videos were as short as 24 seconds and as long as nine minutes, 17 seconds.
The defendant saved the video images from those instances, and dozens of others, on an SD card he kept hidden at his workplace, the plea agreement said. Gonzalez admitted that after the hidden camera was discovered, he destroyed or discarded the hard drive from the Apple MacBook used to edit the videos before law enforcement had a chance to execute a search warrant at his home.
“These crimes are an assault on the dignity of victims who are left to feel violated, powerless, anxious and unsafe,” said U.S. Attorney Laura Duffy. “It will always be a priority to protect our federal employees and the public from such despicable invasions of privacy.”
“The conduct in this case involves a violation of trust and common decency committed against the victims in this case,” said FBI Special Agent in Charge, Eric S. Birnbaum. “We believe that today's plea is the first step in bringing justice and a sense of closure to the victims in this case.”
DEFENDANT Case Number: 15cr0806-BEN Armando Gonzalez Age: 46 El Cajon, California CHARGESOne Count, False Statements to a Federal Officer, in violation of 18 U.S.C. 1001
Maximum Penalty: Five years in prison, $250,000 fineSeven Counts, Video Voyeurism, in violation of 18 U.S.C. 1801
INVESTIGATING AGENCIES
Maximum Penalty: One year in prison, per count, and $100,000 fine per countFederal Bureau of Investigation
Department of Homeland Security
San Diego Police DepartmentBonsall Man Pleads Guilty in Illegal Firearms Trafficking OperationRead the Press Release
SAN DIEGO – Clay Bautista-Marquez of Bonsall pleaded guilty in federal court this morning to a firearms trafficking violation, admitting that he and a co-conspirator sold six untraceable AR-15-style semi-automatic rifles for almost $6,000, and that the guns had been built from unfinished lower receivers.
According to his plea agreement, Bautista-Marquez pleaded guilty before U.S. Magistrate Judge Jill L. Burkhardt to engaging in the business of manufacturing and dealing in firearms and illegally possessing three rifles and a shotgun to protect his marijuana manufacturing and trafficking operation.
Bautista-Marquez is scheduled to be sentenced before U.S. District Judge William Q. Hayes on August 31, 2015 at 9 a.m.
The case stemmed from an investigation that resulted in the seizure of more than 50 firearms and culminated in March with the arrests of Bautista-Marquez and four other men. Christian Romero, Matthew Nutt and Ruben Tovar-Ordonez were charged with participating in a scheme to manufacture and traffic in firearms. Michael Martin was charged with possession of a firearm – specifically two silencers - not registered to him in the National Firearms Registration and Transfer Record.
Romero was the first to plead guilty on April 28, 2015. In his plea agreement, Romero admitted to manufacturing and selling six AR-15 type semi-automatic rifles bearing no manufacturer’s markings or serial numbers and built from unfinished lower receivers between the dates of December 8, 2014, and March 6, 2015. Like Bautista-Marquez, Romero did not have a license to manufacture or deal in firearms at the time. Romero is scheduled to be sentenced by Judge William Q. Hayes on July 20, 2015.
Cases of the remaining defendants are pending.
During the searches and throughout the investigation, federal agents seized more than 50 firearms, including silencers, a short-barreled shotgun, unfinished lower receivers and AR-15-style homemade assault rifles. Some of the firearms were stolen, or had obliterated serial numbers, or both. Agents also found thousands of rounds of ammunition and numerous unfinished lower receivers commonly known as ULRs.
As part of his plea agreement, Bautista-Marquez has agreed to forfeit to the government three rifles, a shotgun and ammunition and $3,860, all of which were seized during searches.
DEFENDANT Case Number: 14cr3360 Clay Bautista-Marquez Age: 31 Bonsall, California CHARGESEngaging in the Business of Dealing in Firearms without a License, in violation of 18 USC 922(a)(1)(A)
Maximum Penalties: Five years imprisonment, a fine of not more than $250,000, and a term of supervised release of not more than 3 years.Possession of Firearms in furtherance of a drug trafficking crime, in violation of Title 18, USC 924(c)(1)(A). Maximum Penalties: Life in prison, with a mandatory minimum 5 years in prison and maximum fine of $250,000 fine
DEFENDANT Case Number: 15mj0721 *Christian Romero Age: 22 Bonsall, California CHARGESEngaging in the Business of Dealing in Firearms without a License, in violation of 18 USC 922(a)(1)(A)
Maximum Penalties: Five years imprisonment, a fine of not more than $250,000, and a term of supervised release of not more than 3 years.*Romero has pleaded guilty
DEFENDANT Case Number: 15mj0740 Matthew Nutt Age: 29 Escondido, California CHARGESEngaging in the Business of Dealing in Firearms without a License, in violation of 18 USC 922(a)(1)(A)
Maximum Penalties: Five years imprisonment, a fine of not more than $250,000, and a term of supervised release of not more than 3 years.
DEFENDANT Case Number: 14cr3360 Ruben Tovar-Ordonez Age: 45 Temecula, California CHARGESUnlawful Dealing in Firearms, in violation of18 USC 922(a)(1)(A). Maximum Penalties Five years imprisonment, a fine of not more than $250,000, and a term of supervised release of not more than 3 years.
DEFENDANT Case Number: 15mj0741 Michael Martin Age: 38 Bonsall, California CHARGESPossession of a Firearm not Registered to him in the National Firearms Registration and Transfer Record, 26 U.S.C. § 5861(d). Maximum Penalties: Ten years in prison, $10,000 fine.
INVESTIGATING AGENCIESDrug Enforcement Administration
Bureau of Alcohol, Tobacco, Firearms and Explosives
Internal Revenue Service
Bureau of Land Management
San Diego Police Department
Immigration and Customs Enforcement –Enforcement and Removal Operations
United States Marshal’s Service
San Diego Sheriff’s Department*A complaint or indictment are 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.
LAPD Officer Indicted for Attempting to Smuggle Mexican Citizen in Trunk of His CarRead the Press Release
SAN DIEGO – Los Angeles police Officer Carlos Curiel Quezada, Jr., and his girlfriend, Angelica Godinez, were indicted by a federal grand jury today on charges that they attempted to smuggle a Mexican citizen into the United States in the trunk of Quezada’s car at the Otay Mesa border crossing in March.
According to court documents, Quezada drove his 2014 Nissan Juke, with Godinez as the front seat passenger, into the United States through the Otay Mesa Port of Entry on March 14, 2015, at about 6:30 p.m. They presented their U.S. passports and told a Customs and Border Protection Officer they had nothing to declare. The officer decided to refer them aside for a more intensive inspection.
During the inspection, officers examined the car with the Z-Portal, a non-intrusive imaging device similar to an X-ray, and detected something unusual in the rear cargo area of the vehicle. Antanasio Perez Avalos, a 26-year-old Mexican national, was found in a compartment in the spare-tire area. All three individuals were then taken into custody and interviewed.
Two days later, Quezada and Godinez were charged in a one-count complaint with Bringing in Illegal Aliens without Presentation. On March 19, 2015, the government’s motion to dismiss the complaint, without prejudice, was granted.
The pair was indicted by a federal grand jury today on the same charge - Bringing in Illegal Aliens without Presentation. Quezada is scheduled to be arraigned on the indictment May 7 at 2:00 p.m. before U.S. Magistrate Judge William Gallo and Godinez on May 12 at 9:00 am before U.S. Magistrate Judge Barbara L. Major.
DEFENDANTS Case Number: Carlos Curiel Quezada Jr. Age: 34 Los Angeles, California Angelica Godinez Age: 31 CHARGESBringing in Illegal Aliens without Presentation – Title 8 United States Code Sec. 1324(a)(2)(B)(iii)
INVESTIGATING AGENCIES
Maximum penalty: 10 years’ imprisonment and $250,000 fineU.S. Customs and Border Protection
*The charges and allegations contained in the Indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.La Jolla Con-Man’s Investment Scheme Nothing More Than A Shell GameRead the Press Release
SAN DIEGO – James Yiu Lee, a resident of La Jolla, was sentenced today to 78 months in prison for fraud arising from the loss of clients’ funds through on-line trading.
Lee solicited clients through a string of false representations, including that he was a wealthy attorney with numerous graduate degrees who had significant trading experience. Among other things, Lee failed to disclose that he had previously been convicted of defrauding investors. As part of his sentence, U.S. District Court Judge Roger T. Benitez ordered Lee to repay over $10.5 million in losses to his former clients.
Lee pleaded guilty to obstructing justice in October 2014, at which time he admitted to hiding clients’ funds in shell corporation accounts and using a series of elaborate transactions to avoid having to pay restitution he owed the United States from his previous felony conviction. Lee was previously convicted of defrauding investors and embezzling from their pension funds in December 1997 in U.S. District Court for the Northern District of California. For the prior offense, Lee was sentenced to 30 months in custody and ordered to pay $2.88 million in restitution. After his release from custody, Lee began a new scheme in San Diego by creating corporations in the names of other persons in order to prevent the United States from finding and collecting his assets. To date, Lee has paid less than $30,000 of the previously-ordered restitution.
By 2009, Lee actively sought clients’ funds for on-line trading by falsely claiming he was a CPA who had Ph.D., J.D., and M.B.A. degrees. Lee also lied about his professional trading experience and his ability to cover potential losses -- assuring clients he could and would cover 50% of any realized losses. In exchange, Lee instructed clients to send management fees and 50% of realized profits to bank accounts opened in the name of his shell corporations, including San Diego-based ELX Int., Inc. (“ELX”), which intentionally failed to list Lee as a corporate officer or on its bank account. Once the assets were under his control, Lee transferred them to other shell accounts under his control and spent hundreds of thousands of dollars on personal expenses, including lavish international trips and credit card bills for high-end department stores.
By January 2011, Lee’s trading activity created significant realized losses for his various clients. Rather than pay clients for 50% of the losses as promised, Lee restructured billing invoices to disguise the losses. To compound the lies, he then fraudulently billed his clients for non-existent gains. Several victims reported losing retirement funds and life savings as a consequence of accepting Lee’s misrepresentations.
United States Attorney Laura Duffy said, “Although the significant custodial sentenced imposed on the defendant for his brazen and calculated crime may be of little compensation to his victims who lost millions, he will be unable to continue his fraudulent scheme to the detriment of others. It is unfortunate that Mr. Lee did not learn his lesson after his first fraud conviction. He will now have a significant period to reflect on the victims whose savings hard-earned money he squandered.”
DEFENDANT James Yiu Lee Age: 59 SUMMARY OF CHARGES Case Number: 14CR2937-BEN Obstruction of Justice, in violation of Title 18, United States Code, Section 1503
Maximum penalty: 10 years of custody; $250,000 Fine
DEFENDANT James Yiu Lee Age: 59 SUMMARY OF PREVIOUS CHARGES Case Number: 95CROO41-MMC-1 (NDCA) Wire Fraud (18 U.S.C. § 1343) & Pension Embezzlement (18 U.S.C. § 664) INVESTIGATING AGENCIESFederal Bureau of Investigation
Five Southern California Ambulance Companies to Pay More Than $11.5 Million to Resolve Kickback AllegationsRead the Press Release
SAN DIEGO – In a lawsuit unsealed in federal court today, five ambulance companies have entered into civil settlements with the Department of Justice requiring them to collectively pay more than $11.5 million in payments to the United States to resolve kickback allegations.
The settling defendants include three Orange-County based companies - Pacific Ambulance, Inc. and Bowers Companies, Inc., (both of which were subsequently acquired by Rural/Metro Corporation after the alleged misconduct occurred) and Care Ambulance Service, Inc.; and two San Diego-based companies - Balboa Ambulance Service, Inc., and E.R. Ambulance, Inc.
The settlements resolve allegations that the defendants engaged in so-called “swapping” kickback schemes by providing deeply discounted – and often below cost – ambulance services to hospitals and/or skilled nursing facilities in exchange for exclusive rights to the facilities’ more lucrative Medicare patient referrals. Such swapping arrangements can lead to overutilization of medical services and inflated charges to the Medicare program. The government alleges that the arrangements in this case resulted in false claims for Medicare Part B transports which in essence subsidized the discounted trips.
The Anti-Kickback Statute prohibits payment arrangements that are intended to influence health care referrals. The statute generally prohibits anyone from offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by federal health care programs, including Medicare.
“It is a priority of this office to combat abuses that drive up the cost of health care and waste taxpayer dollars,” said Laura E. Duffy, United States Attorney for the Southern District of California. “We will continue to work closely with our investigative partners to pursue those who refuse to play by the rules and offer kickbacks to induce health care referrals.”
The case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General and the Federal Bureau of Investigation.
“Today’s settlements resolve a thorough investigation of the practices by ambulance companies that offered significant discount services to facilities in exchange for patient referrals,” said Glenn R. Ferry, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s (OIG) Los Angeles Region. “The OIG takes this type of activity very seriously and welcomes the public’s assistance in identifying any health care businesses that engage in similar types of schemes.”
“Protecting the integrity of the Medicare program so that it can continue to provide health care for its patients is a priority of the FBI,” commented San Diego FBI Special Agent in Charge Eric S. Birnbaum. “Today’s settlements reaffirm the FBI’s commitment to working with our partners and integrating investigative tools with intelligence in the effort to return fraudulently obtained money to the Medicare program.”
These settlements resolve a False Claims Act lawsuit filed in the Southern District of California by Kelvin Carlisle, a competitor in the San Diego, Orange and Los Angeles County ambulance marketplaces. The whistleblower or qui tam provisions of the False Claims Act permit the whistleblower (or relator) to recover a portion of the proceeds obtained by the federal government. As part of the resolution of the suit, Mr. Carlisle will receive in excess of $1.7 million.
These settlements illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.
Anyone suspecting Medicare fraud, waste, or abuse is asked to contact the U.S. Department of Health and Human Services at oig.hhs.gov/report-fraud, by calling 1-800-HHS-TIPS, or writing to the Office Inspector General, U.S. Dept. of Health and Human Services, Attn: Hotline, P.O. Box 23489, Washington, DC 20026.
Two Men Plead Guilty to Trafficking Children for Commercial SexRead the Press Release
SAN DIEGO – Two men pleaded guilty in federal court this week to trafficking children for commercial sex.
On Tuesday, Darius Chambers, 19, admitted before U.S. Magistrate Judge Karen S. Crawford that he trafficked two girls – ages 16 and 17 – for commercial sex. Chambers admitted that, knowing the victims were underage and engaged in prostitution, he collected the proceeds of acts of commercial sex from one victim and provided hotel rooms, cellular telephones, and email accounts for both victims to use for commercial sex. Chambers also admitted that he offered to rent one of his victims to a third trafficker for $100, in order to train that individual’s minor victim in the ways of prostitution.
On Thursday, Terrance Martel Soda, 20, pleaded guilty before Judge Mitchell D. Dembin to trafficking a fifteen-year old girl for commercial sex, knowing that she was a minor. Specifically, Soda admitted that he provided hotel rooms for the victim to use for commercial sex and that he gave her a cell phone, an email account, and online advertisements to recruit customers.
Soda also admitted providing hotel rooms for two additional underage girls for purposes of commercial sex, and that some of the proceeds of those commercial sex acts would go to Lamar Moore. Moore pleaded guilty in October 2014 to trafficking a 17 year-old for commercial sex and aiding and abetting in the trafficking of a 15-year old for commercial sex.
Soda and Chambers are scheduled to be sentenced on July 31, 2015 at 9:00 a.m. before U.S. District Judge Janis L. Sammartino.
DEFENDANTS Case Number: Terrance Martel Soda Age: 20 San Diego, California Darius Chambers Age: 19 San Diego, California CHARGESTrafficking children for commercial sex, in violation of 18 U.S.C. § 1591.
INVESTIGATING AGENCIES
Maximum Penalties: Life, mandatory minimum sentence of 10 years in prison.San Diego Police Department
San Diego Sheriff’s DepartmentMasterminds of International Sports Gambling Ring Find There's No Safe Bet, Plead GuiltyRead the Press Release
SAN DIEGO - Two leaders and one major bookmaker for an international gambling ring pleaded guilty today to a racketeering conspiracy that took millions of dollars in illegal sports wagers over the last decade in the San Diego and Los Angeles areas. Brothers Jan Harald Portocarrero and Erik Portocarrero admitted operating for years an internet and telephone gambling enterprise called “Macho Sports,” which engaged in illegal activities on nearly a daily basis from its headquarters in Lima, Peru, and throughout Southern California. Joseph Barrios, a bookmaker for Macho Sports, also pleaded guilty today and admitted that he recruited and managed various sub-bookies for the racketeering enterprise, directing the payment of winnings and collection of gambling debts – oftentimes using threats of force. The defendants also agreed to forfeit nearly $12 million in cash, real property and other assets seized from the illegal enterprise.
According to court documents, the FBI investigation of Macho Sports began in 2011, and employed wiretaps and undercover agents to infiltrate the organization and uncover the defendants’ illegal gambling and extortionate debt collection activities. Nearly two years ago, in coordinated law enforcement actions in Norway, Los Angeles, and San Diego, FBI agents and Norwegian police arrested 18 members of Macho Sports, and seized nearly $12 million in illegal assets. Macho Sports’ leaders, Jan Harald Portocarrero and Erik Portocarrero, were both arrested in June 2013, although they were half a world apart – Jan Portocarrero surrendered to authorities in Los Angeles, California, and Erik Portocarrero was arrested in Oslo, Norway. For the next 22 months Erik Portocarrero fought his extradition from Norway, but that legal battle ended on Wednesday when the Kingdom of Norway extradited him to the United States. Today, the Portocarreros and Barrios pleaded guilty before U.S. District Judge Janis L. Sammartino, who set sentencing hearings for Jan and Erik Portcarrero on August 7, 2015, and for Joseph Barrios on September 11, 2015. Erik Portcarrero also appeared today before Magistrate Judge Ruben B. Brooks, who denied his request for bond.
According to the superseding indictment and admissions in court, Jan Portocarrero and Erik Portocarrero started their illegal gambling business shortly after the 1995 Super Bowl. Although originally from California, the Portocarrero brothers set up Macho Sports in Peru after being investigated for gambling crimes in the Los Angeles area. Using the Internet and toll-free telephone lines, Macho Sports accepted high-stakes sports bets from customers throughout California. The organization ensured the prompt payment of gambling debts through, among other means, intimidation and a violent reputation as to its treatment of delinquent customers. The co¬ conspirators avoided detection by laundering their illegal proceeds and maintaining a company headquarters and physical platform outside the United States. The Portocarreros employed managers in Peru to oversee the enterprise’s telephone and internet operations, resolve disputes and adjust customers’ lines of credit. The organization also used teams of bookies—such as Amir Mokayef of La Jolla, California (who operated primarily in the San Diego area) and Joseph Barrios (who operated primarily in the Los Angeles area)—to recruit customers, pay off winning bets, and collect losing bets. Mokayef and Barrios, in turn, managed their own network of “sub-bookies” to recruit customers and collect payments. The enterprise also used “runners,” who dealt directly with customers and maintained thousands (and sometimes millions) of dollars in cash to handle customer payments and collections. Millions of dollars from these “banks” – which the conspirators kept in their homes and safe deposit boxes – were seized by authorities as part of the investigation.
The United States continues to pursue charges and forfeitures against Macho Sports International Corporation – the Panamanian entity allegedly used by the enterprise to conduct and legitimize its illegal gambling operation.
United States Attorney Duffy commented, “Although technology has made internet gambling more accessible, it is a mistake for criminals to believe that they can hide behind computer terminals in foreign countries. The United States and our international partners will use all means necessary to combat and disrupt such crimes, which too often are characterized by organized criminals, shady bookies, and actual acts of violence.
FBI Special Agent in Charge Eric S. Birnbaum commented, “Today’s convictions mark the end of a sophisticated international gambling criminal enterprise that preyed upon the gambling addiction of its customers. It also reaffirms the FBI’s commitment to working with our domestic and international law enforcement partners, integrating intelligence into our criminal investigations and dismantling sophisticated criminal enterprises such as Macho Sports.”
DEFENDANTS Case Number: 13CR2196-JLS Jan Harald Portocarrero (1) Age: 42 Los Angeles, California Erik Portocarrero (2) Age: 44 Oslo, Norway Joseph Barrios (4) Age: 49 Marina Del Rey, California CHARGESCount 1: Conspiracy to Conduct Racketeering Enterprise (RICO Conspiracy), in violation of Title 18, United States Code, Section 1962(d).
Maximum penalties: 20 years in prison, 3 years’ supervised release, $250,000 fine, and forfeiture of all proceeds generated from operating the racketeering enterprise.
INVESTIGATING AGENCIESFederal Bureau of Investigation
Oceanside Lawyer Sentenced to 12 Years in Prison for Defrauding Thousands of Distressed Homeowners in $13 Million Loan Modification SchemeRead the Press Release
SAN DIEGO – Two defendants were sentenced today for their roles in defrauding more than 3,000 homeowners across the nation through a sham law firm in Oceanside, California.
Dean Gregory Chandler, the former President, Chief Executive Officer, and attorney for the company, 1st American Law Center, was sentenced to 144 months. Michael Eccles, a manager in the company’s telemarketing call center, was sentenced to 60 months.
The two defendants were each convicted of multiple felony counts in November 2014, after a three-week jury trial. Chandler was convicted of 8 felony counts: three counts of mail fraud, three counts of wire fraud, and one count of conspiracy and money laundering. Eccles was convicted of five counts: conspiracy and two counts each of mail fraud and wire fraud.
The 1st American Law Center Scheme
According to evidence presented at trial, Chandler created 1st American Law Center in 2009 in partnership with convicted drug trafficker Gary Bobel (who has been separately convicted and sentenced for his role in the scheme). Chandler arranged to have Bobel oversee the call center and its teams of telemarketers, who pitched loan modification services on behalf of the law center. Those telemarketers, including Eccles, promised potential clients that a panel of attorneys would pre-screen applicants’ financial information to ensure that only the most qualified applicants would be approved as clients of the law firm; that a team of attorneys would negotiate with clients’ mortgage lenders; that those attorneys would draft all documents to be submitted to the mortgage lenders; that the “attorney retainer fee,” which averaged $3,495, would be preserved in an attorney-client trust account until the client was satisfied; and that clients were protected by a money-back guarantee.As presented at trial, Michael Eccles was promoted to manager of the call center in December 2009, and he took advantage of the new position to script additional lies for the telemarketers to use with clients, including that the law firm had been in business since 1992; that they had been successfully modifying loans for over 20 years; that they had helped over a hundred thousand homeowners; and that it took attorneys on average 200 hours to complete a successful loan modification – all to suggest that the clients could take hope and comfort in the expertise and established success of the “law firm” they had hired. The telemarketers even persuaded homeowners to pay the company=s fees instead of using their limited funds to stay current on their mortgage payments.
Witness testimony and documentary evidence at trial proved that Chandler had almost no role in the loan modification process, and that nearly all of the statements made by telemarketers to the clients were lies. Chandler, the attorney, did not pre-screen all of the applications or negotiate with lenders. Rather than successfully modifying 98% of their client’s mortgages, as they claimed, the firm failed to modify three out of every four loans. Instead of keeping clients’ payments in an attorney trust account, they were funneled into various other accounts to pay co-schemers, sales commissions, and company expenses. Instead of having funds available to deliver on its money-back guarantee, the firm failed to provide refunds to untold numbers of clients who requested them.
For his part, Chandler served as the face of the law firm, and the firm’s commercial, website, and brochure featured Chandler’s name, image, and state bar license number. Chandler reviewed telemarketer call scripts submitted to him for approval, and also listened in real time and on recordings to telemarketer calls to clients.
Chandler Lied While Trying to Stay One Step Ahead of the Feds
According to evidence at trial, however, Chandler’s chief role was to mislead regulatory and enforcement agencies that threatened the law firm’s profitable operations. In that capacity, in October 2009 Chandler lied under oath in a sworn declaration to an Assistant Attorney General at the California Department of Justice. Multiple witnesses testified that the statements in Chandler’s declaration were false. And when the constant customer complaints threatened the company’s bottom line, Chandler also lied repeatedly to the Better Business Bureau in efforts to try to inflate the law center’s sagging ratings. For his role in the scheme, Chandler earned over $275,000 in about a 14-month period. In July 2010, after the Federal Bureau of Investigation and Internal Revenue Service executed a search warrant at his law firm, Chandler also drained one of the firm’s bank accounts of $16,500 and used it for his own benefit, instead of to pay employees or refund victims. This transaction was the basis of the money laundering charge.Victims Speak
During the trial, multiple victims of the defendants’ fraudulent scheme came from across the country to testify about their experiences. For example, a couple from Evansville, Indiana, both in their 70s, related how they contacted 1st American Law Center to avoid losing the home where they had spent 27 years raising a family, which was specially modified to accommodate their paraplegic son’s wheelchair. Due to medical problems, which forced the husband to retire as an auto mechanic, the couple fell behind on their payments. The couple put their faith in the promise that an attorney would negotiate with their lender. They also counted on the money-back guarantee if the firm was unsuccessful. The couple ultimately lost their home, and their money.With today’s sentencings, thirteen individuals have now been sentenced as a result of the fraudulent operation of 1st American Law Center. Gary Bobel received a sentence of 92 months. Telemarketer Shelveen Singh, who operated out of Riverside, was sentenced to 110 months. Other convicted telemarketers include Travis Iverson, Scott Spencer, Johnny Hearn, Anthony Calandriello, Mark Spencer, and Roger Jones. Information Technology Director Steven Gersztyn was convicted and sentenced for lying to federal agents during the investigation of the case, and Amy Hintz and Sarah Grimm were each convicted of theft of government property for stealing documents while making copies of evidence in the FBI’s custody.
Federal Law Enforcement Condemns Loan Modification Schemers
United States Attorney Laura E. Duffy commented, “The real tragedy of this case is that the defendants chose to profit from the suffering of others. In difficult economic times, they exploited a particularly vulnerable segment of our population—homeowners who were desperately trying to make ends meet and stay in their homes.”“Mr. Chandler and Mr. Eccles misused and abused their positions of trust to prey upon those who were financially vulnerable and desperate to save their homes,” said FBI Special Agent in Charge Eric S. Birnbaum. “The sentences imposed today reaffirm our commitment to hold accountable the guilty who profit by taking advantage of vulnerable people.”
“The defendants used a slew of lies to sell their loan modification services and obtain money from distressed homeowners throughout the United States,” said IRS Criminal Investigation’s Special Agent in Charge Erick Martinez. “Loan modification scams thrived for a time, but that time is gone, and as the sentences imposed today show, it’s time for those responsible to face judgment.”
DEFENDANTS Case Number: 12CR4031-BEN Dean Gregory Chandler Age: 50 Fallbrook, California Michael Eccles Age: 35 Vista, California CHARGESDefendant Chandler was convicted of Counts 1-4 and 6-8.
Defendant Eccles was convicted of Counts 1, 3-4, 6 and 7.
Count 1: Conspiracy to commit mail fraud or wire fraud, in violation of 18 U.S.C. § 1349.
Maximum Penalties: 20 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.Counts 2-4: Mail Fraud, in violation of 18 U.S.C. § 1341.
Maximum Penalties: 20 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.Counts 6-7: Wire Fraud, in violation of 18 U.S.C. § 1343.
Maximum Penalties: 20 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.Count 8: Money Laundering, in violation of 18 U.S.C. § 1957.
INVESTIGATING AGENCIES
Maximum Penalties: 10 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.Federal Bureau of Investigation
Internal Revenue Service, Criminal InvestigationSan Diego Jury Finds Former Iranian National Guilty of Illegal Scheme to Export Sensitive U.S. Technology to IranRead the Press Release
On April 23, 2015, a federal jury convicted a naturalized U.S. citizen and former Iranian national of violations of U.S. export and money laundering laws, arising from his involvement in a scheme to purchase marine navigation equipment and military electronic equipment for illegal export to, and end-use in, Iran.
The defendant, Arash Ghahreman, of Staten Island, New York, was convicted of: (1) attempted export to Iran, and conspiracy to do the same, in violation of the Iran Trade Embargo (formerly known as the Iranian Transactions and Sanctions Regulations); (2) smuggling goods from the United States, and conspiracy to the same; and (3) aiding and abetting the transfer of money from Dubai to the United States, in support of an illegal export activity, and conspiracy to do the same. The case involved a seven-day jury trial, beginning on April 13, 2015, and ending on April 23, 2015, when the jury returned a guilty verdict on seven counts of a nine-count indictment, after one day of deliberation. The jury was unable to reach a verdict on the two remaining two counts involving the attempted exportation and smuggling of a fiber optic gyrocompass, used in both military and civilian marine navigation applications.
The evidence presented at trial showed that Ghahreman acted an agent of an Iranian procurement network which used a front company in Dubai, United Arab Emirates (“UAE”), to acquire U.S. goods and technologies for illegal transshipment to, and end-use in, Iran. Codefendant Koorush Taherkhani (“Taherkhani”), an Iranian national and resident, was the managing director and founder of that front company, codefendant TIG Marine Engineering Services (“TIG Marine”). Because of his German nationality, codefendant Ergun Yildiz, a resident of UAE, was hired by Taherkhani to be the “face” of the front company, as the President/CEO of TIG Marine. Before Ghahreman immigrated to the U.S. in 2007, Ghahreman and Taherkhani had been friends and dorm mates at an Iranian University, where each received a degree in marine engineering. Upon graduation, both Ghahreman and Taherkhani worked as engineers for various Iranian shipping companies, including the Islamic Republic of Iran Shipping Lines and its subsidiaries. After immigrating to the United States, Ghahreman was employed by various shipyards in the U.S., and became a naturalized U.S. citizen. Because of his employment and citizenship status, Ghahreman was well placed to act as an agent of the illegal procurement network.
From December 2012, through June 17, 2013, Ghahreman and his codefendants negotiated, via email, text, telephone and meetings, with Homeland Security Investigations (“HSI”) and Defense Criminal Investigative Service (“DCIS”) undercover agents to purchase marine navigation components (fiber optic gyrocompasses), military electronic components (electron tubes), and other U.S. technology for illegal export to, and/or end-use in, Iran. The undercover agents were posing as brokers of U.S. goods and technology, willing to sell U.S. goods to the defendants for end-use in Iran. Ultimately, as a result of these negotiations, Ghahreman and his codefendants agreed to purchase four (4) Navigat-2100 fiber optic gyrocompasses and fifty (50) Y-690 units (electron tubes). Pursuant to that agreement, Ghahreman and his codefendants wired approximately $60,000 in partial payment for the gyrocompasses and electron tubes from a bank in Dubai to the undercover agents’ bank account. Ultimately, on June 17, 2013, HSI agents arrested Ghahreman and Yildiz after they traveled to the U.S. and took partial delivery of one gyrocompass and two electron tubes and attempted to ship the items indirectly to Iran, via third countries.
Defendant Ghahreman is scheduled to be sentenced on July 17, 2015, before the Honorable Dana M. Sabraw. Codefendant Ergun Yildiz previously pled guilty to conspiracy to export to Iran on October 9, 2014, and is scheduled to be sentenced on May 8, 2015, before Judge Sabraw. Codefendant Taherkhani, an Iranian national and resident, remains a fugitive. Codefendant TIG Marine is a Dubai, UAE company.
DEFENDANTS Case Number: 13cr4228-DMS Arash Ghahreman Age: 45 Staten Island, New York Ergun Yildiz Age: 35 Dubai, UAE Koorush Taherkhani Age: 43 IranTIG Marine, a UAE company
CHARGESCount 1: Conspiracy to Export to Embargoed Country (Iran), 50 U.S.C. §§ 1702 and 1705; 31 C.F.R. §§ 560.203 and 560.204 - Maximum penalties: 20 years in prison, $1,000,000 fine, term of supervised release of three years, and $100 special assessment. (defendant Ghahreman and Yildiz guilty on Count One.)
Counts 3 and 4: Attempted Export to Embargoed Country (Iran), 50 U.S.C. §§ 1702 and 1705; 31 C.F.R. § 560.204 - Maximum penalties (per count): 20 years in prison, $1,000,000 fine, term of supervised release of three years, and $100 special assessment. (Defendant Ghahreman guilty on Count 4; Government dismissed Count 3 after jury unable to reach verdict)
Count 2: Conspiracy to Smuggle Goods from the United States, 18 U.S.C. '' 371 and 554 - Maximum penalty: Five years in prison, $250,000 fine, term of supervised release of three years, and $100 special assessment. (Defendant Ghahreman guilty on Count 2)
Counts 5 and 6: to Smuggle Goods from the United States, 18 U.S.C. '' 371 and 554 - Maximum penalties (per count): Ten years in prison, $250,000 fine, term of supervised release of three years, and $100 special assessment. (Defendant Ghahreman guilty on Count 6; Government dismissed Count 5, after jury unable to reach verdict)
Count 7 - Conspiracy to Launder Monetary Instruments, 18 U.S.C. § 1956(h) - Maximum penalties: Twenty years in prison, $500,000 fine, term of supervised release of three years, and $100 special assessment. (Defendant Ghahreman guilty on Count 7)
Counts 8 and 9 -- Laundering of Monetary Instruments, 18 U.S.C. '' 1956(a)(2)(A) - Maximum penalties (per count): Twenty years in prison, $500,000 fine, term of supervised release of three years, and $100 special assessment. (Defendant Ghahreman guilty on Counts 8 and 9)
INVESTIGATING AGENCIESHomeland Security Investigations, Department of Homeland Security
Defense Criminal Investigative ServiceSan Diego Man Arrested and Charged with Making False Statements in an International Terrorism InvestigationRead the Press Release
SAN DIEGO – Mohamad Saeed Kodaimati of San Diego was arrested and charged in a federal criminal complaint with two counts of making false statements involving international terrorism matters, announced U.S. Attorney Laura E. Duffy of the Southern District of California, Special Agent in Charge Eric S. Birnbaum of the FBI’s San Diego Field Office and Assistant Attorney General for National Security John P. Carlin.
A criminal complaint was filed today in the U.S. District Court of the Southern District of California charging Saeed with two counts of providing false statements involving international terrorism. In summary, the criminal complaint alleges that during interviews with agents from the FBI and the Department of State’s Diplomatic Security Service (DSS) which occurred in March 2015 at the U.S. Embassy in Ankara, Turkey, Saeed made material false statements about his recent activities and associations in Syria.
According to the complaint, Saeed falsely claimed that he had never been involved in any fighting, that he had never fired his weapon at anyone, that he did not know anyone who was a member of ISIL, that he had never told anyone else that he was involved with Al-Nusrah, and that he had never worked or volunteered at a Sharia court. Evidence gathered during the investigation contradicts these and other statements Saeed made to the interviewing agents.
According to the criminal complaint, Saeed was born in Syria and became a naturalized U.S. citizen in September 2008. In December 2012, Saeed travelled from San Diego to Istanbul and was in Syria and Turkey until his return to the United States.
In March 2015, Saeed returned to the United States and was interviewed by U.S. Customs and Border Protection agents and the FBI. Saeed was arrested by FBI agents and members of the San Diego Joint Terrorism Task Force (JTTF) in Rancho Bernardo, California, without incident on April 22, 2015. Saeed is scheduled to make his initial appearance before U.S. Magistrate Judge Karen Crawford on Thursday, April 23, 2015 at 2 p.m.
The charges in this matter are the result of an investigation conducted by the FBI’s San Diego Joint Terrorism Task Force, with assistance provided by the FBI’s JTTF in Charlotte, North Carolina.
DEFENDANT Mohamad Saeed Kodaimati Age: 24 San Diego, California CHARGESFalse Statements Involving International Terrorism, in violation 18 U.S.C. 1001(a)(2)
INVESTIGATING AGENCIES
Maximum penalty eight years in prison per count, $250,000 fineFederal Bureau of Investigation
San Diego Joint Terrorism Task Force
Homeland Security Investigations*An arrest itself is not evidence that the defendant committed crimes charged. The defendant is presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.
San Diego Man Arrested and Charged with Making False Statements in an International Terrorism InvestigationRead the Press Release
SAN DIEGO – Mohamad Saeed Kodaimati of San Diego was arrested and charged in a federal criminal complaint with two counts of making false statements involving international terrorism matters, announced U.S. Attorney Laura E. Duffy of the Southern District of California, Special Agent in Charge Eric S. Birnbaum of the FBI’s San Diego Field Office and Assistant Attorney General for National Security John P. Carlin.
A criminal complaint was filed today in the U.S. District Court of the Southern District of California charging Saeed with two counts of providing false statements involving international terrorism. In summary, the criminal complaint alleges that during interviews with agents from the FBI and the Department of State’s Diplomatic Security Service (DSS) which occurred in March 2015 at the U.S. Embassy in Ankara, Turkey, Saeed made material false statements about his recent activities and associations in Syria.
According to the complaint, Saeed falsely claimed that he had never been involved in any fighting, that he had never fired his weapon at anyone, that he did not know anyone who was a member of ISIL, that he had never told anyone else that he was involved with Al-Nusrah, and that he had never worked or volunteered at a Sharia court. Evidence gathered during the investigation contradicts these and other statements Saeed made to the interviewing agents.
According to the criminal complaint, Saeed was born in Syria and became a naturalized U.S. citizen in September 2008. In December 2012, Saeed travelled from San Diego to Istanbul and was in Syria and Turkey until his return to the United States.
In March 2015, Saeed returned to the United States and was interviewed by U.S. Customs and Border Protection agents and the FBI. Saeed was arrested by FBI agents and members of the San Diego Joint Terrorism Task Force (JTTF) in Rancho Bernardo, California, without incident on April 22, 2015. Saeed is scheduled to make his initial appearance before U.S. Magistrate Judge Karen Crawford on Thursday, April 23, 2015 at 2 p.m.
The charges in this matter are the result of an investigation conducted by the FBI’s San Diego Joint Terrorism Task Force, with assistance provided by the FBI’s JTTF in Charlotte, North Carolina.
DEFENDANT Mohamad Saeed Kodaimati Age: 24 San Diego, California CHARGESFalse Statements Involving International Terrorism, in violation 18 U.S.C. 1001(a)(2)
INVESTIGATING AGENCIES
Maximum penalty eight years in prison per count, $250,000 fineFederal Bureau of Investigation
San Diego Joint Terrorism Task Force
Homeland Security Investigations*An arrest itself is not evidence that the defendant committed crimes charged. The defendant is presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt.
Chula Vista Corporate Officers Guilty of International Trafficking in Counterfeit Cell PhonesRead the Press Release
SAN DIEGO - Three corporate officers of Chula Vista-based Ohr, Inc., as well as the corporation itself, pleaded guilty yesterday to charges related to their international trafficking in counterfeit cell phones.
In pleading guilty, Michael Deitz, Sidney Schwarz, and Leora Schwarz admitted that they were officers of Ohr, Inc., from August 29, 2009, through May 31, 2013. The company was engaged in importing cellular phones and accessories from Taiwan to Chula Vista, which were later sold in retail stores in Mexico.
Deitz admitted that he was responsible for ordering the products sold by Ohr, Inc., while Sidney Schwarz acknowledged he was responsible for paying the suppliers. Deitz and Sidney Schwarz admitted that many of the cellular phones and accessories imported from China for Ohr, Inc., were counterfeit, in that they bore unauthorized copies of trademark owned by Apple, Samsung, Motorola, Nokia, Sony Ericsson and Blackberry, among others. They further admitted that they received at least nine notices from U.S. Customs, advising that the products they had imported were counterfeit and had been seized during the relevant period.
After learning that the source was supplying them with counterfeit goods, Deitz and Sidney Schwarz continued to do business with the supplier. Deitz also acknowledged that he received emails from his suppliers in China, discussing “illegal logos” and “copy logos” in relation to the cellular phone products he was purchasing, which he forwarded to Schwarz for payment of the attached invoices.
Deitz admitted in his plea agreement that he was aware that the items identified in the invoices as “copy,” “copy logo,” and “AAA” were counterfeit, and that all the cell phone housings and batteries that he purchased from China bearing trademarks were counterfeit. Both men and the company admitted that on August 9, 2011, Customs seized a box of goods ordered by Deitz on behalf of Ohr, Inc., and addressed to Schwarz’s residence which contained hundreds of counterfeit Nokia and Blackberry cell phone housings and hundreds of counterfeit Motorola, Sony Ericsson, Blackberry and Samsung cell phone batteries (shipped from the supplier who had previously shipped counterfeit goods that had been seized). The men acknowledged that the value of the counterfeit goods they imported from China was between $120,000 and $320,000, and agreed to forfeit $150,000, the proceeds of the offense.
Leora Schwarz admitted that on January 14, 2010, she received a notice from U.S. Customs, advising her that all importers of electronics and cellular phone products whose commercial value exceeded $2,500 had the duty to present formal entry documents to Customs for such entries. Leora Schwarz was aware that shipments of cellular phone products whose value exceeded $2,500 were being sent to Ohr, Inc. from China, and she took no action to have formal entry documents prepared, intended that the merchandise enter through the mail without formal inspection.
Deitz, Sidney Schwarz and Ohr, Inc, are set to be sentenced on July 24, 2015, at 8:30 a.m. before U.S. District Judge Gonzalo Curiel. Leora Schwarz was sentenced to one year of probation and a $1,000 fine.
DEFENDANTS Case Number: 14-CR-1075-GPC Ohr, Inc. Incorporated: 2007 Chula Vista, California Michael Deitz Age: 39 Chula Vista, California Sidney Schwarz Age: 60 Chula Vista, California Leora Schwarz Age: 32 Chula Vista, California CHARGESDefendants Ohr, Inc., Michael Deitz and Sidney Schwarz
Count 18: Importation Contrary to Law, in violation of Title 18, United States Code, Sections 545 and 2
Maximum penalties: Twenty years in prison, $250,000 fine, term of supervised release of three years, restitution, forfeiture and $100 special assessment.Criminal Forfeiture, in violation of Title 18, United States Code, Section 981(A)(1)(C) and 982(a)(1)(A) and (B); Title 31, United States Code, Section 5317(c)(1) and Title 28, United States Code, Section 2461(d)
Defendant Leora Schwarz
Failure to Present Entry Documents, a misdemeanor, in violation of Title 19, United States Code, Sections 1433 and 1436(c) and Title 18, United States Code, Section 2
INVESTIGATING AGENCIES
Maximum penalty: One year in prison, a $100,000 fine, a term of supervised release of one year, restitution, and a $25 penalty assessmentHomeland Security Investigations
U.S. Postal Inspection ServiceRetired Master Sergeant Sentenced to 24 Months for Stealing Identities of Military Personnel to Fuel Credit Card Shopping SpreesRead the Press Release
Christopher Dwan Underwood, a retired Air Force senior master sergeant, was sentenced today to two years in prison for stealing government credit cards and personal identifying information from more than 30 fellow service members in the San Diego area.
According to documents filed in federal court, Underwood used his Air Force privileges to gain access to gymnasiums on San Diego-area military installations. At these facilities, Underwood would steal credit cards and personal identifying information from his fellow service members’ unattended personal effects (e.g., gym bags, clothing, lockers, etc.).
After obtaining the credit cards and personal information, Underwood would pose as the service members and use this information—including their addresses, birthdates, and Social Security numbers—to activate his victims’ government Citibank charge cards. Once activated, Underwood used the stolen credit cards to make hundreds of unauthorized purchases amounting to tens of thousands of dollars stolen. In his buying sprees, Underwood obtained numerous cash advances and purchased items such as airline tickets and meals at upscale San Diego eateries (i.e., Donovan’s Prime Seafood and Tartine).
DEFENDANT Case Number: 14cr1859-GPC Christopher Dwan Underwood Age: 42 San Diego, California CHARGES18 U.S.C. § 1343 – Wire Fraud (30 years maximum sentence)
INVESTIGATING AGENCIES
18 U.S.C. § 1028A – Aggravated Identity Theft (mandatory-minimum two-year sentence)Naval Criminal Investigative Service
Marine Corps Criminal Investigation Division
Navy Criminal Investigation DivisionRetired Marine Charged with Murdering His Girlfriend, Dismembering Her Body, and Dumping Her Remains in the Panamanian JungleRead the Press Release
Brian Karl Brimager, 37, prior boyfriend of murdered Los Angeles woman Yvonne Baldelli, was indicted by a federal grand jury in San Diego, California, today on first degree murder charges. Brimager was arraigned in court on the superseding indictment and pleaded not guilty.
Brimager has been in U.S. custody since June 2013 on charges of obstruction of justice, giving false statements to a federal officer and falsifying records all related to the same murder investigation.
According to the indictment in September 2011, Brimager and Baldelli moved together from Los Angeles, California, to the archipelago of Bocas del Toro, Panama. They rented a room in a small five-unit hostel on Isla Carenero, a small island near Bocas reachable only by boat. Almost immediately upon arrival Brimager began emailing another girlfriend, the mother of his young daughter. In these emails, Brimager discussed plans to move back to California to live with this other girlfriend and help raise their daughter. The emails did not mention Baldelli.
As revealed in the charging document, at the same time he was emailing the other girlfriend, Brimager began physically abusing Baldelli. Among other damage, these beatings caused bruises around Baldelli’s eyes and on her arms. The indictment alleges that around Nov. 26, 2011, Brimager murdered Baldelli, dismembered her body and disposed of her body parts in a remote jungle area on Isla Carenero. Following her murder, Brimager engaged in an elaborate scheme to cover up the crime. This scheme included destroying evidence, giving false information to law enforcement and sending a series of emails purportedly from Baldelli in order to make it appear to her friends and family that she was still alive.
According to the indictment, Brimager created a cover story to explain Baldelli’s whereabouts and, in the days and months that followed, engaged in a series of obstructive acts designed to back up his story. For example, Brimager, using Baldelli’s laptop, sent emails to Baldelli’s family and friends from her personal email account, in which he purported to be Baldelli. These emails, among other things, falsely claimed that Baldelli was alive and living in Costa Rica with another man. To corroborate this story, Brimager, after murdering Baldelli, withdrew money from her bank accounts at an ATM to make it appear that she was on her way to Costa Rica. He further attempted to substantiate his cover story by making another withdrawal from Baldelli’s bank accounts when he travelled through Costa Rica on his way back to the U.S.
The indictment also alleges that Brimager attempted to conceal his crime by disposing of a bloody mattress involved in Badelli’s murder in the ocean. According to the indictment, within a few hours of murdering Baldelli and prior to dumping the mattress in the ocean, Brimager conducted two internet searches on Baldelli’s computer, one for “washing mattress” and a second for “washing mattress blood stain.”
The indictment also charges Brimager with making materially false statements to the FBI during an interview on March 21, 2012. The indictment alleges that Brimager falsely stated that Baldelli took her white Sony VAIO laptop with her when she left Panama, when in fact, the laptop was found in Brimager’s possession on March 21, 2012, months after Baldelli’s murder.
Baldelli’s skeletal remains were not found in the jungle until almost two years after her murder.
The case was prosecuted by Assistant U.S. Attorneys W. Mark Conover and Shane P. Harrigan.
Retired Marine Charged with Murdering His Girlfriend, Dismembering Her Body, and Dumping Her Remains in the Panamanian JungleRead the Press Release
Brian Karl Brimager, prior boyfriend of murdered Los Angeles woman Yvonne Baldelli, was indicted by a federal grand jury in San Diego today on first degree murder charges. Brimager was arraigned in court on the superseding indictment and pleaded not guilty.
Brimager has been in U.S. custody since June 2013 on charges of obstruction of justice, giving false statements to a federal officer and falsifying records all related to the same murder investigation.
According to the indictment, in September 2011, Brimager and Baldelli moved together from Los Angeles to the archipelago of Bocas del Toro, Panama. They rented a room in a small five-unit hostel on Isla Carenero, a small island near Bocas reachable only by boat. Almost immediately upon arrival Brimager began emailing another girlfriend, the mother of his young daughter. In these emails, Brimager discussed plans to move back to California to live with this other girlfriend and help raise their daughter. The emails did not mention Baldelli.
As revealed in the charging document, at the same time he was emailing the other girlfriend, Brimager began physically abusing Baldelli, causing injuries that included bruising around her eyes and on her arms. The indictment alleges that around November 26, 2011, Brimager murdered Baldelli, dismembered her body, and disposed of her body parts in a remote jungle area on Isla Carenero. Following her murder, Brimager allegedly engaged in a scheme to cover up the crime, including destroying evidence, giving false information to law enforcement and sending a series of emails purportedly from Baldelli in order to make it appear to her friends and family that she was still alive.
According to the indictment, Brimager created a cover story to explain Baldelli’s whereabouts and, in the days and months that followed, engaged in a series of obstructive acts designed to back up his story. For example, Brimager (using Baldelli’s laptop) allegedly sent emails to Baldelli’s family and friends from her personal email account, in which he purported to be Baldelli. These emails, among other things, falsely claimed that Baldelli was alive and living in Costa Rica with another man. To corroborate this story, Brimager (after murdering Baldelli) withdrew money from her bank accounts at an ATM to make it appear that she was on her way to Costa Rica, according to the indictment. He further attempted to substantiate his cover story by making another withdrawal from Baldelli’s bank accounts when he travelled through Costa Rica on his way back to the United States.
The indictment also alleges that Brimager attempted to conceal his crime by disposing of a bloody mattress involved in Badelli’s murder in the ocean. According to the indictment, within a few hours of murdering Baldelli and prior to dumping the mattress in the ocean, Brimager conducted two internet searches on Baldelli’s computer – one for “washing mattress” and a second for “washing mattress blood stain.”
The indictment also charges Brimager with making materially false statements to the FBI during an interview on March 21, 2012. The indictment alleges that Brimager falsely stated that Baldelli took her white Sony VAIO laptop with her when she left Panama, when in fact, the laptop was found in Brimager’s possession on March 21, 2012 – months after Baldelli’s murder.
Baldelli’s skeletal remains were not found in the jungle until almost two years after her murder.
DEFENDANT Case Number: 13CR2381-JM Brian Karl Brimager Age: 37 CHARGESForeign Murder of a United States National, Title 18, United States Code, Section 1119
Maximum Penalties: Death or life imprisonment, $250,000 fine, restitutionObstruction of Justice - Title 18, United States Code, Section 1512(c)(2)
Maximum Penalties: 20 years imprisonment, a $250,000 fine, 3 years supervised releaseFalse Statement to a Federal Officer - Title 18, United States Code, Section 1001
INVESTIGATING AGENCIES
Maximum Penalties: 5 years imprisonment, a $250,000 fine, 3 years supervised releaseFederal Bureau of Investigation
*An indictment is not evidence that the defendants committed the crimes charged. The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
“Tax Day” Was Not Business as Usual for Naval Preparer Who Filed False Tax Returns for Fellow Service MembersRead the Press Release
Former U.S. Navy sailor Leonard Damon Washington was arraigned today on charges that he prepared and filed false tax returns that resulted in inflated refunds for fellow service members and big fees for him.
Leonard Damon Washington, who was assigned to the USS Higgins in 2010 when the alleged crimes began, was arrested on Tax Day, April 15, 2015, in Springdale, Arkansas. He was arraigned in federal court in the Western District of Arkansas before U.S. Magistrate Judge Erin Setser on charges of tax evasion and aiding and assisting in the preparation of false tax returns. The judge set bond at $50,000.
According to the indictment, which was unsealed today, Washington marketed himself to Navy service members as someone who could assist in preparing and filing income tax returns in exchange for a fee. During 2010, Washington convinced fellow Navy service members to let him prepare their income tax returns, but concealed his role as a paid tax preparer from the Internal Revenue Service (IRS). Among the false and misleading representations he made to his fellow Navy service members, Washington stated that he could obtain special tax deductions that other tax preparation services could not obtain or were unaware. The indictment also alleges that Washington created false and fraudulent income tax returns and tax forms for his clients and generated substantial false tax refunds. These false refunds allowed Washington to charge tax preparation fees in excess of $100,000. Washington directed these fees into multiple bank accounts (both in his name and in the name of nominees) in order to frustrate and impede the IRS’s efforts at determining his true income.
“Navy service members place a substantial amount of trust in their colleagues, especially while they are protecting our freedoms. It is intolerable when one of their own defrauds both his fellow Navy service members and the IRS,” said U.S. Attorney Laura E. Duffy. She reminded the public to always review a copy of any tax return prepared and filed on their behalf.
Erick Martinez, Special Agent in Charge for IRS Criminal Investigation commented, “The IRS wants everyone who files a tax return to take advantage of the deductions and credits to which they are entitled by law; however, no one is entitled to defraud the government or other American taxpayers. As the traditional tax filing season concludes, the IRS reminds you to always review your return before signing it, and question any items you do not understand.” The government is seeking the removal of Washington to face charges in the Southern District of California.
DEFENDANT Case Number: 15CR0951-JM Leonard D. Washington Age: 42 CHARGESCount 1: Title 26, United States Code, Section 7201 B Tax Evasion.
Maximum penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, 3 years of supervised releaseCounts 2-7: Title 26, United States Code, Section 7206(2) – Aiding and Assisting Preparation of False Tax Returns.
INVESTIGATING AGENCIES
Maximum penalties per count: 3 years’ imprisonment, $100,000 fine, $100 special assessment, 1 year of supervised releaseInternal Revenue Service-Criminal Investigation
* An indictment 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.
GSA Official Admits Accepting Bribes and Stealing Government PropertyRead the Press Release
Timothy Francis Cashman, a Building Manager for the General Services Administration (“GSA”), admitted today to an almost decade-long conspiracy to accept bribes and steal property owned by the United States. In doing so, Cashman acknowledged using his position with GSA (overseeing operations and maintenance at the Otay Mesa, San Ysidro, and Tecate Ports of Entry) for his personal enrichment; rather than to fulfill GSA’s core mission of delivering “the best value in real estate, acquisition, and technology services to government and the American people.”
As revealed in Court, Cashman admitted that in return for providing favorable treatment relating to the awarding of GSA contracts, he corruptly demanded that government contractor Hugo Alonso Inc. (“HAI”) give him $10,000 in cash and perform thousands of dollars’ worth of construction and renovation services on Cashman’s personal residence. These services included having HAI paint Cashman’s Lakeside home and replace his roof and windows free of charge.
The former GSA building manager also admitted demanding that HAI pay another government contractor (Company “A”) $120,000 in exchange for HAI being awarded a GSA construction contract at the Otay Mesa POE. Subsequently, Cashman accepted six checks from Company “A” totaling $42,000, which he deposited into his personal account. All of the income he received from HAI was concealed from the IRS when submitting his federal income tax returns.
In addition to accepting bribes from HAI, Cashman also detailed in Court how he improperly obtained thousands of dollars in valuable United States Government building materials for his own benefit by causing GSA contractors and others to remove and transport such materials away from GSA facilities where he could sell or use them without the knowledge of GSA. For example, Cashman instructed government contractors: (1) in March 2011, to load approximately 25 stainless steel panels located at the San Ysidro POE into his personal Ford truck; (2) in January 2012, to load 35 heavy brass letters (spelling out “United States Border Inspection Station” and weighing approximately 2,000 pounds) into his personal truck; (3) in December 2012, to collect approximately 3,000 feet of underground copper cable belonging to the United States and to deliver it to, among other places, his personal residence; and (4) in November 2013, to set aside for his personal sale a large quantity of underground copper cable and approximately 5 aluminum panels located at the Otay Mesa POE.
United States Attorney Laura E. Duffy said, “This defendant abused his position of trust for many years and the taxpayers paid the price. Combatting public corruption will remain one of my office’s highest priorities.” She also thanked the Special Agents with the FBI, IRS-CI and GSA-OIG whose tireless work both uncovered this corruption and resulted in removing the corrupt official from the government fisc.
“Mr. Cashman admittedly undermined the process of fair and open competition when he conspired to accept bribes in exchange for awarding lucrative government contracts,” said IRS Criminal Investigation’s Los Angeles Field Office Special Agent in Charge Erick Martinez. “The IRS is committed to aggressively investigating those individuals who engage in corruption, fraud and deceit designed to satisfy their greed.”
“When a public servant like Mr. Cashman abuses his position and fails to conduct the public’s business in an honest and ethical manner, it undermines the public’s trust in government,” said FBI Special Agent in Charge, Eric S. Birnbaum. “When that happens, the FBI and our law enforcement partners will work together to restore the public’s trust by aggressively investigating and holding accountable those individuals who would abuse this trust for their own personal gain.”
“GSA employees who take bribes and steal from the U.S. government will be investigated and prosecuted to the full extent of the law,” said GSA Acting Inspector General Robert C. Erickson.
The FBI encourages the public to report allegations of public corruption to our hotline at (877) NO-BRIBE (662-7423).
HAI, and its principal, Hugo Alonso, have previously pled guilty and been sentenced. Cashman is scheduled to be sentenced before U.S. District Judge Gonzalo P. Curiel on August 7, 2015 at 8:30 a.m.
DEFENDANT Case Number: 14CR3621-GPC Timothy Francis Cashman Age: 54 Lakeside, California CHARGESCount 1: 18 U.S.C. § 371 - Conspiracy to commit bribery and theft of government property
Maximum Penalty: 5 years’ imprisonment and a $250,000 fineCount 2: 26 U.S.C. § 7206(1) - Filing False Tax Return
INVESTIGATING AGENCIES
Maximum Penalty: 3 years’ imprisonment and a $250,000 fineFederal Bureau of Investigation
Internal Revenue Service – Criminal Investigations
General Services Administration – Office of Inspector General
CBP Office of Field Operations
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Small Business Administration – Office of Inspector GeneralU.S. Navy Officer Pleads Guilty to Selling Classified Ship Schedules as Part of Expanding Navy Bribery ProbeRead the Press Release
SAN DIEGO – U.S. Navy Lieutenant Commander Todd Dale Malaki pleaded guilty to bribery charges in federal court today, admitting that he accepted cash, hotel expenses and the services of a prostitute in return for providing classified U.S. Navy ship schedules and other internal Navy information to an executive of a defense contracting firm.
Malaki, 44, of San Diego, pleaded guilty before U.S. Magistrate Judge Mitchell D. Dembin of the Southern District of California to one count of conspiracy to commit bribery. A sentencing hearing is scheduled for July 6, 2015.
As part of his guilty plea, Malaki admitted that in 2006, while he was working as a supply officer for the U.S. Navy’s Seventh Fleet, he began a corrupt relationship with Leonard Glenn Francis, the former president and chief executive officer of Glenn Defense Marine Asia (GDMA), a company that provided services to the U.S. Navy. As part of the scheme, Malaki provided Francis with classified U.S. Navy ship schedules and proprietary invoicing information about GDMA’s competitors. In exchange, Malaki admitted that Francis provided him with luxury hotel stays in Singapore, Hong Kong and the island of Tonga, as well as envelopes of cash, entertainment expenses and the services of a prostitute. Malaki admitted that the total value of the benefits he received was approximately $15,000.
“The receipt of envelopes of cash and lavish hotel stays by our public officials at whatever level erodes the public’s trust in our institutions and our government,” said U.S. Attorney Laura Duffy. “Today’s guilty plea reflects the next step in our ongoing effort to regain that public trust.”“Another Navy officer has now pleaded guilty and admitted to taking bribes to reveal classified military information to a major supplier,” said Assistant Attorney General Leslie R. Caldwell. “It is both troubling and disappointing how many Navy officers we have exposed as willingly falling prey to GDMA’s corruption, and our investigation remains active and ongoing. Those who serve in our nation’s military must uphold the public’s trust or pay the consequences for their crimes.”
Malaki is the eighth individual to plead guilty in this expanding probe into corruption and fraud in the U.S. Navy. GDMA pleaded guilty in January. Two other individuals, Paul Simpkins, formerly a Department of Defense (DOD) contracting officer, and Michael Misiewicz, a Captain-select in the U.S. Navy, have been charged and entered pleas of not guilty.
The ongoing investigation is being conducted by Defense Criminal Investigative Service and Naval Criminal Investigative Service, with substantial assistance from the Defense Contract Audit Agency. The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher and Robert S. Huie of the Southern District of California and Senior Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case Number: 15CR967-WQH Todd Dale Malaki Age: 44 San Diego, California CHARGESConspiracy to Commit Bribery, in violation of 18 U.S.C. § 371. Maximum penalty five years in prison, $250,000 fine or twice the gross pecuniary gain or loss from the offense, whichever is greater;
INVESTIGATING AGENCIESDefense Criminal Investigative Service
Defense Contract Audit Agency
Naval Criminal Investigative ServiceTax Fraudster Claims Prison SentenceRead the Press Release
U.S. Attorney for the Southern District of California Laura E. Duffy announced that Arman Eritsian was sentenced in federal court yesterday to a 30-month prison term for his role in a conspiracy to defraud the Internal Revenue Service out of hundreds of thousands of dollars by filing false tax returns in the names of stolen identities. Eritsian is one of 20 defendants who have been sentenced in a series of tax and bank fraud prosecutions targeting organized groups that victimized individuals, financial institutions and the U.S. Treasury.
Eritsian, the lead defendant in one indictment, had earlier admitted that between 2010 and 2012, he conspired with others to steal the identifying information of unwitting victims in order to file false tax returns in their names. The conspirators would direct the IRS to pay bogus refund claims to addresses or bank accounts under their control, and then withdraw the fraud proceeds so they could be spent by the conspirators. For his part, Eritsian admitted that he obtained stolen identities that were later used to file fraudulent returns; utilized multiple addresses and bank accounts to receive tax refund checks; used email accounts to communicate details of the conspiracy with coconspirators; and employed debit cards to monitor accounts opened and maintained to receive fraudulent tax refunds.
Chief District Judge Barry Ted Moskowitz explained that the sentence was warranted in part because Eritisan had sought to defraud the very nation that had welcomed him as a persecuted immigrant just a few years earlier. Eritsian emigrated from Azerbaijan to the United States as an asylum seeker, but soon thereafter began to participate in tax and insurance fraud schemes using stolen identities. Within a matter of months of being released from state custody for one of these scams, Eritsian joined others in the tax fraud scheme that led to his federal conviction and the sentence imposed yesterday.
Eritsian’s sentencing is the latest flowing from the September 2013 arrests of dozens of people in “Operation Trillions Trouble.” The four related cases charged over 50 defendants with multiple tax fraud conspiracies and several schemes to defraud American financial institutions. United States Attorney Laura E. Duffy praised the hard work of agents from the FBI and IRS-CI, along with their state and local counterparts, to disrupt and dismantle these fraud schemes and protect American taxpayers.
Erick Martinez, Special Agent in Charge for IRS Criminal Investigation commented, “Identity theft and tax refund fraud were the lifeblood that Arman Eritsian and his co-conspirators used to further their massive fraud scheme. Yesterday’s sentencing of Eritsian, for his lead role in this crime ring, demonstrates IRS Criminal Investigation’s commitment to holding accountable those who victimize the public through brazen attempts at identity theft and tax refund fraud.”
FBI Special Agent in Charge, Eric S. Birnbaum commented, “The FBI will work tirelessly, using all investigative resources and intelligence capabilities, to dismantle sophisticated criminal enterprises that victimize the American public."
Eritsian was also ordered to pay $58,323 in restitution, most of which had already been collected by the IRS.
DEFENDANT Case Number: 13CR3480-BTMArman Eritsian
Age: 36 Woodland Hills, California CHARGESConspiracy to Commit Mail and Wire Fraud – Title 18, U.S.C., Section 371
INVESTIGATING AGENCIES
Maximum penalty: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitutionFederal Bureau of Investigation
Internal Revenue Service, Criminal InvestigationLocal Company Dumps Hazardous Wastes Containing Nickel and Zinc into SewersRead the Press Release
Southern California Plating Company (“SoCal Plating”), a local metal finishing company located in Logan Heights, and its owner, Paul Hummell, admitted illegally storing hazardous waste and unlawfully discharging the waste into the sewer system. In pleading guilty, SoCal Plating acknowledged that it illegally discharged industrial wastewaters in excess of its permit limits into the City of San Diego sewer system.
As detailed in Court, the firm’s permit required compliance with Federal pretreatment standards for metal finishers, which limits the daily maximum concentration of nickel to 3.98 mg/L and the daily maximum concentration of zinc to 2.61 mg/L. However, SoCal Plating admitted that on July 8, 2013 and October 8, 2013, its employees discharged industrial wastewater to the sewer system which contained zinc and nickel in excess of these limits.
Company owner Paul Hummell admitted that the firm’s metal finishing operations generated a number of wastewater streams, including spent corrosive cleaning and process baths, and rinse waters which were corrosive and contaminated with toxic heavy metals.
On January 28, 2014, an inspection by the San Diego Department of Environmental Health Services (“DEH”) at SoCal Plating revealed drums of wastewater which had been stored at the site for over 90 days. The drums were sampled and found to contain chromium in toxic concentrations rendering it federally regulated hazardous waste. Hummell admitted that he knew that the industrial wastewater stored at the facility was hazardous waste and that no permit existed to store hazardous waste at the SoCal Plating site.
In pleading guilty, SoCal Plating agreed to pay restitution of $8,266 to DEH and $28,130 to the City of San Diego Industrial Waste Control Program for costs associated with monitoring the firm’s discharge and disposal of its wastewaters. Wastewater containing heavy metals such as those generated by metal finishers is required to be treated prior to discharge to the sewer system in order to avoid compromising the treatment works and/or pass through to the receiving waters. Heavy metals in high concentrations can damage the digesters at the sewage treatment plants, causing them to operate less efficiently.
"EPA is committed to achieve environmental justice for American communities overburdened from the illegal discharge of industrial materials," said Jay M. Green, Special Agent in Charge for EPA’s criminal enforcement program in California. The defendants’ manner of doing business is not only dangerous, it is criminal. By refusing to comply with the law, the defendants put the unsuspecting public at serious risk"
San Diego FBI Special Agent In Charge Eric S. Birnbaum commented “The metal plating industry requires strict adherence to environmental laws due to the toxic chemicals it uses and the danger these chemicals present to our community. Today's conviction holds the defendant accountable for his actions, and is a step in the right direction to address, a public health threat to the citizens of San Diego, and of Logan Heights in particular. The FBI will continue to work with our public and private sector partners in our ongoing efforts to safeguard the health of our citizens and prevent the ongoing degradation of our natural resources through criminal prosecution."
Sentencing for SoCal Plating and Hummell is set for August 3, 2015, at 9:00 a.m. before the Honorable Marilyn L. Huff, United States District Judge.
DEFENDANT Case Number: 15cr0947-H Paul Charles Hummell, Jr. Age: 71 San Diego, California CHARGESCount 1: Illegal Storage of Hazardous Waste, in violation of 42 U.S.C. § 6928(d)(2)(A)
Maximum Penalties: 5 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution
DEFENDANT Case Number: 15cr0946-H Southern California Plating Company Incorporated: 1983 San Diego, California CHARGESCount 1: Illegal Discharge of Pollutants, in violation of 33 U.S.C. § 1317(d) and 1319©(2)(A)
Maximum Penalties: 5 years’ probation, $500,000 fine or twice the pecuniary gain or loss resulting from the offense and a minimum fine of $5,000 per day of violation, $400 special assessment, restitution INVESTIGATING AGENCIESU.S. Environmental Protection Agency, Criminal Investigations Division
Federal Bureau of InvestigationAttorney Pleads Guilty to Defrauding Clients and InvestorsRead the Press Release
SAN DIEGO – San Diego attorney Todd Macaluso, whose practice included representing plaintiffs in personal injury lawsuits, pleaded guilty today to defrauding his clients and investors by entering into funding agreements that put his clients’ personal injury cases up as collateral without their knowledge or consent. As part of his guilty plea, Macaluso admitted that he forged the signatures of his clients, and used forged notary stamps and signatures, in order to convince potential investors to advance him millions of dollars.
According to court records, Macaluso funded his personal injury law practice by entering into “funding agreements” with various investors. Under these agreements, investors advanced Macaluso money in exchange for the right to collect a portion of his clients’ recoveries in the future. Although clients had to consent to the collateralization of their lawsuits in order for these transfers to be valid, Macaluso concealed these arrangements from many of his clients and forged their signatures on the financing documents. To conceal his scheme, Macaluso also forged the signatures and stamps of notary publics who purportedly witnessed the executions of these legal documents, but who (like his client) had no knowledge of the arrangements.
United States Attorney Laura E. Duffy commented, “Individuals who have suffered a personal injury should not have to worry about being victimized by their own advocate. The defendant’s conviction should be a stark reminder that attorneys and other fiduciaries will be prosecuted if they fraudulently misuse the privileges society has given them.”
FBI Special Agent in Charge Eric S. Birnbaum commented, “Mr. Macaluso betrayed his clients’ trust by putting his clients’ personal injury recoveries on the hook without their knowledge or consent. The FBI is committed to maintaining the integrity of our justice system by aggressively investigating those individuals that violate their fiduciary responsibilities through fraudulent schemes that victimize the American public.”
Macaluso is scheduled to be sentenced on July 13, 2015, at 9:00 a.m. before U.S. District Court Judge Roger T. Benitez, at which time he will be ordered to pay restitution to all of his victims.
DEFENDANT Case Number: 15cr0948-BEN Todd E. Macaluso Age: 52 Rancho Santa Fe, California CHARGESTitle 18, United States Code, Section 1343 - Wire Fraud. Maximum penalties: 20 years in prison, $250,000 fine, term of supervised release of three years, restitution, forfeiture, and $100 special assessment.
INVESTIGATING AGENCIESFederal Bureau of Investigation
Defendant Pleads Guilty to Robbing Three Banks as the Bearded BanditRead the Press Release
SAN DIEGO – Christopher Andrew Gibson, dubbed the “Bearded Bandit,” pleaded guilty today to robbing three San Diego banks of more than $7,600 in late 2014.
Gibson entered his plea before U.S. Magistrate Judge Karen S. Crawford to three counts of bank robbery, and was ordered to appear in front of U.S. District Judge Marilyn L. Huff for sentencing on July 20, 2015.
In the course of the investigation, the Federal Bureau of Investigation learned that Gibson committed the first bank robbery within hours of being released from the George Bailey Detention Facility, where he was held on unrelated charges. Gibson was dubbed the “Bearded Bandit” because of the shaggy facial hair he had in the first two robberies.
According to his plea agreement, Gibson entered Wells Fargo Bank, located at 685 Saturn Boulevard, San Diego, on October 7, 2014, and presented a bank employee with a note that was paraphrased as follows: “I know your training. No dye packs. No GPS devices. I want $4,567. Hurry cause I'm not waiting all day.” Gibson then took approximately $1,419.00 from the employee and fled the bank.
Gibson admitted in his plea agreement that he followed up with a robbery a week later in Vista at a Chase Bank, located at 1641 South Melrose Drive, on October 15, 2014. During the robbery, Gibson presented a bank employee with a note, which in effect said, “I know your training. I want $4,788 in 15 seconds. No dye packs or GPS devices.” Gibson took approximately $2,240.00 from the employee and fled the bank.
Gibson’s final robbery occurred at a second Chase Bank, located at 985 Vista Way in Vista, on November 6, 2014, his plea agreement said. During the robbery, Gibson presented a bank employee with a note, reading to the effect, “Don't be stupid and press any buttons. I know your training so just cooperate. I want $4,000 and no GPS devices or dye packs. No fake bills. I'm counting to 30.” Gibson took approximately $4,000.00 from the employee and fled the bank. The demand notes were not recovered.
DEFENDANTS Case Number: Christopher Andrew Gibson Age: 26 Vista, California CHARGESCounts 1-3: Bank Robbery – Title 18, U.S.C., Section 2113(a)
INVESTIGATING AGENCIES
Maximum penalty: 20 years’ imprisonment and $250,000 fineFederal Bureau of Investigation
Violent Gang Member Sentenced to 20 Years for Methamphetamine Trafficking with A FirearmRead the Press Release
SAN DIEGO – Daniel Vazcones, aka “D-Boy”, a longtime member of the violent Logan Heights criminal street gang was sentenced today in federal court to 20 years in prison for distributing methamphetamine while in possession of a firearm.
Vazcones pled guilty in September to drug- and weapons-related charges. At sentencing, and in court records, he admitted to distributing methamphetamine while in possession of a .40-caliber Glock semi-automatic handgun.
During the hearing, Assistant U.S. Attorney Mark Conover argued for a significant sentence, noting that Vazcones was a “dangerous violent gang member” who since his arrest had made multiple threats to kill police officers and others involved in his prosecution.
This case highlights an emphasis on the federal prosecution of cases involving violent gang members in the Southern District of California. This case was the result of a long-term investigation conducted by the Violent Crime Task Force - Gang Group, a group of federal, state, and local law enforcement agents led by the Federal Bureau of Investigation.
“We are absolutely committed to making our neighborhoods safe from violent gang activity and drug trafficking,” said U.S. Attorney Laura Duffy. “We will not allow our neighborhoods to become headquarters for drug-pushing, gun-toting gangsters.”
FBI Special Agent in Charge Eric Birnbaum stated, “Today's sentencing should send a message to all gang members that the FBI and our law enforcement partners will aggressively pursue gang activity and hold gang members accountable for their criminal activities.”
DEFENDANTS Case Number: Daniel Vazcones Age: 31 El Cajon, California CHARGESCount 1: Distribution of Methamphetamine-21 U.S.C. § 841(a)(1)
Maximum Penalties: Up to life in prison; 10 year mandatory minimum.Count 2: Possession of Firearm in Furtherance of Drug Trafficking Crime-18 U.S.C. § 924(c)
INVESTIGATING AGENCIES
Mandatory 5 years’ imprisonment consecutive to drug trafficking sentenceFederal Bureau of Investigation
Identity Thief Sentenced to 15 Years in Prison in What Judge Called “Extraordinary” CaseRead the Press Release
SAN DIEGO – A Mexican national who stole the identity of a California-born farmworker and impersonated him for almost three decades – even claiming to be the father of some of his victim’s children - was sentenced in federal court today to 184 months in prison in what is believed to be the longest sentence of its kind.
Ramiro Plascencia-Orozco was charged in 2011 with two counts of aggravated identity theft and two counts of illegal reentry after deportation for acts that occurred in 2008 and 2011. He was convicted by a federal jury in August 2014 of all four counts after less than four hours of deliberation.
According to court records, Plascencia has used at least 35 different aliases over the course of four decades, but none more prolifically than that of Alberto Jose Del Muro-Guerrero, a man he met once through a mutual friend in the 1980s. Plascencia also has been removed from the United States more than 20 times and has been prosecuted 10 times for alien smuggling, illegal reentry, identity theft, false claim to U.S. Citizenship, drug trafficking and other crimes by the U.S. Attorney’s Office. At sentencing today, Plascencia still continued to assert that he is Del Muro.
U.S. District Judge John Houston said the long sentence was warranted in part because of Plascencia’s extensive criminal history, the decades-long impact of the crime on the victim and his family, and the defendant’s lack of remorse.
“The court finds the seriousness of identity theft is extraordinary in this case,” Judge Houston.
Later in the hearing, Judge Houston scolded Plascencia, speaking of the impact of his crimes on the real Del Muro. “Throughout the last 30 years he (Del Muro) has not had the opportunity to advance his life for himself and his family. He could not get a good job because of the criminal record that you imposed upon him. Because he couldn’t get a good job, it’s only reasonable to infer that his kids could not get a better education, that he could not have a better lifestyle for he and his family, because he was limited and handcuffed by you, because you stripped him of his identity throughout his entire adult life, to the benefit of yourself, and to his detriment - his extreme detriment.”
The judge criticized Plascencia for his legal maneuverings, including numerous instances in which he fired or pressed for the removal of almost all of his defense attorneys over the course of his criminal career in an attempt to delay proceedings.
“Unfortunately what a transcript in this case cannot reveal is your cavalier demeanor in court proceedings, demonstrating and telegraphing to this court that you understand what’s going on here and that you understand that you’re manipulating this entire system of justice, holding this very system hostage to your whim…for your own reasons,” Judge Houston said.
“I am extremely gratified by this sentence, which could not be more appropriate for a man who not only stole a name but hijacked a life for three decades,” said U.S. Attorney Laura Duffy. “We hope that with this sentence, Mr. Del Muro’s nightmare will be over and he will never again be forced to share his name with an audacious, calculating thief with no regard for anyone but himself.”
While arguing for a significant sentence, Assistant U.S. Attorney Marietta Geckos told the court: “We know that prison time cannot replace the years Mr. Del Muro has lost, the anxiety he has suffered, and the inconvenience he and his family endured. But today, for everyone here, we can say that there is one Mr. Del Muro, and he is not here today. Plascencia-Orozco is a serial violator of our immigration laws and is an unremorseful imposter. No U.S. citizen should have to fight this hard to save his own name. This must end.”
According to a statement read to the court by Assistant U.S. Attorney David Finn on behalf of Del Muro: “I want this to end, and for him (the defendant) to leave me alone, and I want him to get enough time in jail so that he doesn't come out and reuse my name. He only gets 3-4 years each time and as soon as he is released he uses my identity. Please do me a favor of putting an end to this. Have him stop bothering me and my family. It happens too often. Please give the maximum punishment you can since he deserves whatever you decide.”
According to court documents, Plascencia was arrested August 2, 2011 at the San Ysidro Port of Entry when he attempted to enter the United States through the pedestrian lane. He presented a U.S. birth certificate bearing the name Alberto Jose Del Muro, but a fingerprint inspection indicated that he was a Mexican citizen with no legal right to enter the U.S.
This attempted reentry occurred about one month after he had been deported by an immigration judge for entering the U.S. illegally yet again. The trial also included Plascensia’s 2008 illegal entry, and his illicit use of Del Muro’s documents at that time.
During trial, the real Alberto Jose Del Muro-Guerrero testified that he met Plascencia at a bar through a friend. The next day, Del Muro said, he ran into Plascencia in the street. Plascencia complained that their mutual friend had left him stranded, so Del Muro took Plascencia to his house and allowed him to sleep one night in his car.
Del Muro said Plascencia had asked for the car keys so he could listen to the radio. The next day, Del Muro found his car and Plascencia missing, along with his wallet, driver’s license, birth certificate and social security card, which he kept in the glove compartment on work days.
During his testimony, Del Muro explained that he worked in the fields and could be stopped by immigration authorities at any time, so he kept his identification documents at the ready, in the glove compartment of his car. He said he could not keep them in his pocket because they would get wet while working in the fields. Del Muro immediately reported his car stolen to police. His 1969 Ford Montego was later found in Oregon, but he would later realize he’d suffered a loss that proved far worse.
According to court transcripts, Del Muro testified that he started getting tickets after that, and his license was suspended. “I would go the Department of Motor Vehicles, and then the first thing that would show up would be his picture.” Even now, Del Muro has been unable to get a California Driver’s license.
Plascencia took the stand in his own defense. In addition to the wholesale adoption of the true Del Muro’s relatives - including names of parents, grandparents, children, spouse, date of birth, and city of birth - the defendant claimed that the true Mr. Del Muro – the victim in this case - had actually stolen the defendant’s wife/woman, and that some or all of the Del Muro children were fathered by the defendant.
According to the government’s sentencing memorandum, “The suffering caused by defendant Plascencia on the Del Muro family is palpable as they have been dragged through litigation for almost three decades because of defendant Plascencia’s identity theft.”
DEFENDANTS Case Number: Ramiro Plascencia-Orozco Age: 60 Guadalajara, Jalisco, Mexico CHARGESTwo counts (2 & 4) Aggravated Identity Theft, in violation of Title 18 U.S.C. Sec. 1028A – required penalty two years per count consecutive to any other term of imprisonment.
Two counts (1 & 3) Illegal Entry after Deportation, in violation of Title 8, U.S.C., Sec. 1326 (a)(b)–, Maximum penalties 20 years in prison, $250,000 fine.
INVESTIGATING AGENCIESU.S. Customs and Border Protection
Defendant Pleads Guilty in Complex Real Estate ScamRead the Press Release
SAN DIEGO – Daniel Deaibes pleaded guilty today to participating in a scheme to steal title to Southern California homes, and then to “sell” the properties to unsuspecting buyers – who later learned they had actually purchased nothing.
According to his plea agreement, between September 2012 and November 2014, when Deaibes and two alleged co-conspirators were indicted and arrested, the trio fraudulently sold or attempted to sell at least 10 homes for more than $2.3 million.
As Deaibes admitted during his guilty plea, he participated in the scheme at the direction of a co-conspirator, the owner of several real estate investment outfits. According to Deaibes’ admissions, the co-conspirator and others would record fraudulent grant deeds at county recorder’s offices, so that it would appear that the true owners of homes had deeded their properties to shell companies controlled by the co-conspirator.
Once the fraudulent documents were recorded in the chain of title, the co-schemers would pose as the new owners and immediately try to sell the properties. Deaibes said his coconspirator used aliases and a host of sham businesses to pose as the owner of properties they listed for sale, and along with Deaibes, set up bank accounts for the sham companies so that fraud proceeds could be funneled out of the scheme. In this way, the conspirators would take all the proceeds of the sale, and the true owners of the properties would get nothing.
As Deaibes admitted during his guilty plea, the schemers even took steps to thwart efforts by the true owners to regain title to the properties. In one instance, true owner Fannie Mae discovered that a fraudulent grant deed had been recorded on a property it owned in Rowland Heights, California. Shortly after discovering the fraudulent deed, Fannie Mae filed a lawsuit to recover control over the property and notify prospective buyers of the fraudulent deed.
According to Deabes’ plea agreement, he and his co-schemers created a fake “Withdrawal of Lis Pendens” in an effort to proceed with the fraudulent sale. When Fannie Mae won a judgment in its favor and obtained a court finding that the deed was fraudulent, the co-schemers created a fake “Satisfaction of Judgment” and recorded that fraudulent document as well.
Deaibes also admitted that he used the alias “John Moran” to pose as the seller’s representative in several of the fraudulent sales. He introduced himself as “Moran” and presented a fake driver’s license to two different notaries in 2014. Deaibes admitted that he signed fraudulent documents using this alias in an effort to sell or encumber properties that belonged to unsuspecting owners.
Deaibes admitted that he and the co-schemers generated more than $1.5 million in profits from the scheme. In each case, the unwitting third-party buyer paid for a house believing that Alzoubi and his co-schemers had valid title. In fact, most of these properties were actually owned by Fannie Mae and Freddie Mac -- government sponsored enterprises with a mission to provide liquidity, stability, and affordability to the United States housing and mortgage markets. As part of their mission, Fannie Mae and Freddie Mac purchase residential mortgages in the secondary market, enabling lenders to replenish their funds to finance additional single family loans. Fannie Mae and Freddie Mac can become the property owners if they own the mortgage loan at the time a home is foreclosed.
U.S. Attorney Laura E. Duffy commented, “Although the Great Recession ended some time ago, some of the lingering problems in the housing market are caused by schemes, such as this one, that undermine the public’s confidence in the security of their most important investment, their homes. The Department of Justice, working closely with our law enforcement partners, is committed to aggressively prosecuting those who misuse the real estate process to commit fraud.”
FBI Special Agent in Charge, Eric S. Birnbaum, commented, “Today’s conviction is a step in the right direction in holding Mr. Deaibes accountable for his illegal activities. The FBI is committed to working with our law enforcement partners in identifying and dismantling fraudulent schemes that undermine our economy and leave taxpayers to pay the bill. The FBI will aggressively pursue these cases so that our precious tax dollars will be used where they are needed most.”
Sentencing is set for June 8 at 9:00 am before U.S. District Judge Cynthia Bashant.
Deaibes and two other defendants, Mazen Alzoubi real estate investor Mohamed Daoud, were indicted in November 2014. Deaibes and Alzoubi, who were both arrested by FBI agents on November 19, 2014, were charged with mail fraud. Daoud was arrested at Los Angeles International Airport as he prepared to depart for his home country of Norway. He was charged in a related case with conspiracy to commit mail fraud and wire fraud.
The investigation into this fraud scheme is continuing. Anyone with information relating to these charges or similar scams is encouraged to contact the San Diego branch of the Federal Bureau of Investigation at (858) 320-1800 or the Federal Housing Finance Agency - Office of Inspector General hotline at (800) 793-7724.
DEFENDANT Case Number: 14CR3325-BAS Daniel Deaibes Age: 36 Rancho Cucamonga, CA CHARGESMail fraud, in violation of 18 U.S.C. § 1341.
Maximum Penalties: 20 years’ imprisonment, $250,000 fine or twice the pecuniary gain or loss resulting from the offense, $100 special assessment, restitution.
DEFENDANTS PREVIOUSLY CHARGED Daniel Deaibes, 14CR3325-BAS Age: 31 Rancho Cucamonga, CA Mail fraud, 18 U.S.C. § 1341 Mohamed Daoud, 14CR3326-BAS Age: 50 Norway Conspiracy to commit mail fraud and wire fraud, 18 U.S.C. § 1349 INVESTIGATING AGENCIESFederal Housing Finance Agency – Office of Inspector General
Federal Bureau of InvestigationAs to defendants Mazen Alzoubi and Mohamed Daoud, the public is reminded that the charges are not evidence that the defendants committed the crime charged. The defendants are presumed innocent until the United States meets its burden in court of proving guilt beyond a reasonable doubt.
Self Storage Managers Plead Guilty to Investment FraudRead the Press Release
SAN DIEGO – The three owner/operators of Equity Based Services (EBS), Howard Kaplan and his two sons, Stephen and Eric Kaplan, pled guilty today to conspiring to commit wire fraud. According to the charging documents, the three principals admitted stealing over a half million dollars from investors while operating the business.
EBS (operating as American Mini Storage) was formed, in 1995, as a San Diego-based private real estate company specializing in the acquisition and management of self-storage properties. According to the plea agreements filed in court, beginning in or about 2001 and continuing to sometime in 2010, the company and its affiliates offered individuals the opportunity to invest in syndicates comprised of approximately 77 self-storage projects in a dozen different states. In doing so, they failed to disclose material information about the source of periodic return payments and the actual past performance of the self-storage projects.
Investors in the various syndicates were convinced to invest with the Kaplans, in part, by the representation that they would be entitled to a “Preferred Return,” usually in the amount of 8% per annum. This Preferred Return would generally be paid on a monthly, quarterly or other periodic basis; and, if not paid, would accrue until the property was sold. Investors were also promised that the defendants would not share in or be paid their fee (consisting of 25% of the profits) unless and until all other investors had received their 8% return. From approximately 2002 through August 2010, EBS regularly distributed the 8% periodic return to investors. Based, in part, on these regular 8% Preferred Returns, many earlier investors invested in one or more subsequent projects. These regular payments also attracted new investors.
Unknown to investors, some of the regular 8% Preferred Returns were made possible only because defendant Howard Kaplan was diverting funds from better-performing properties or using fees paid to EBS generated by new project syndications. As admitted in court proceedings, defendant Howard Kaplan failed to disclose to investors that their investment project was not generating enough operational profit to justify the 8% return. Similarly, he concealed from investors that certain individual syndications were, in fact, not generating sufficient funds to even cover their operational costs and debt service. In addition, Howard Kaplan also failed to disclose to investors that he was commingling their funds and using them to pay other projects’ debt service.
In entering his plea, Howard Kaplan admitted he breached his fiduciary responsibility and duty to investors by pre-funding the return payments through a process of raising excess funds for individual projects. Also, he induced investors to invest additional funds in projects without informing these investors as to the true financial condition of the properties, and created new and sometimes undisclosed fees called “capital assignment considerations” and “equity consulting fees”.
Defendants Stephen and Eric Kaplan admitted they were aware of the above misconduct by their father no later than January 2010. Despite this knowledge, they continued to seek and accept investments while failing to disclose the true financial status of the properties and misuse of funds to both new and old investors.
This case is being co-prosecuted with the California Attorney General’s Office, with assistance from the California Department of Business Oversight.
DEFENDANTS Case Number: Howard Kaplan Age: 71 El Cajon, California Stephen Kaplan Age: 51 La Jolla, California Eric Kaplan Age: 43 San Diego, California CHARGESTitle 18, U.S.C., Sec. 371 – Conspiracy to commit wire fraud. Maximum penalties under the statute include 5 years in prison, $250,000 fine, three years of supervised release.
INVESTIGATING AGENCIESCalifornia Department of Business Oversight
Federal Bureau of InvestigationDepartment of Justice Files Suit Against Storage Company for Unlawfully Selling Servicemembers’ BelongingsRead the Press Release
SAN DIEGO – The Department of Justice has filed a lawsuit to recover damages from a storage company that allegedly violated the Servicemembers Civil Relief Act when it sold service members’ personal property without obtaining the necessary court orders. The defendants in this lawsuit are Daniel E. Homan and Horoy Inc., doing business as Across Town Movers—a San Diego, California, storage company. Homan is the President and sole owner of Horoy Inc.
The Servicemembers Civil Relief Act, known as SCRA, protects the rights of service members while on active duty by suspending or modifying certain civil obligations. The law states that a storage lien may not be enforced against service members during, or 90 days subsequent to, their period of military service without a court order. The Department of Justice’s complaint alleges that, since 2011, Across Town Movers sold the personal property of 11 service members without obtaining a required court order.
The complaint further alleges that after illegally selling one of the service member’s personal property, Across Town Movers continued to receive regular payments from the United States for storage of the sold property. That service member is U.S. Navy Master Chief Petty Officer Thomas E. Ward.
In 2006, Master Chief Ward, a 30-year veteran, was deployed overseas. He placed his valuable car parts and many household items into storage, and entrusted Across Town Movers to keep his personal property safe until he returned. Just before he returned home, he learned that Across Town Movers had auctioned all of his stored personal property, including vintage original car parts.
“Service members, especially when deployed overseas, should be able to focus on protecting our county and shouldn’t have to worry about losing their personal property,” said U.S. Attorney Laura E. Duffy of the Southern District of California. “Congress enacted the SCRA for this purpose, and we will pursue all appropriate remedies to ensure that our service members’ rights are protected. Whether large or small, businesses will be held accountable for violating those rights.”
“Federal law does not allow storage companies to sell the contents of a servicemember’s storage lot without a court order,” said Acting Assistant Attorney General Vanita Gupta of the Civil Rights Division. “Storage companies should check the Defense Department’s military database and other resources before conducting any auction to see if the customer is protected by the Servicemembers Civil Relief Act. The Department of Justice is committed to protecting the rights of the men and women who serve in our Armed Forces and we will continue to devote time and resources to make sure that they are given the legal protections they deserve.”
In addition to seeking damages for the value of the auctioned goods, the SCRA provides for civil monetary penalties of up to $55,000 for the first offense and $110,000 for each subsequent offense. The Department of Justice will also seek injunctive relief.
This lawsuit was filed today in the Southern District of California. This matter resulted from a referral to the Justice Department by the U.S. Navy.
Service members and their dependents who believe that their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program office. Office locations may be found at http://legalassistance.law.af.mil/content/locator.php. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting service members is available at www.servicemembers.gov.
This matter is being handled by Assistant U.S. Attorneys Dylan M. Aste and Leslie M. Gardner of the Southern District of California.
Ex-Marine Indicted in Sexual Assault of Another Marine on Camp PendletonRead the Press Release
SAN DIEGO – A former Marine is charged in an indictment unsealed today with sexually assaulting an active-duty Marine in November 2014 on Camp Pendleton.
Pedro Javier Orellana, 23, was indicted by a federal grand jury and surrendered himself for arrest in Laurel, Maryland on Wednesday. He made his first federal court appearance today in Greenbelt, Maryland. A detention hearing will be held on Thursday to determine if Orellana should be detained pending transfer back to San Diego.
According to the indictment, Orellana sexually assaulted his victim on the Marine base while she was “incapable of appraising the nature of the conduct or was physically incapable of declining participation in the sex act.”
DEFENDANT Case Number: 15CR0597 Pedro Javier Orellana Age: 23 Laurel, Maryland CHARGES18 U.S.C. § 2242(2) – Sexual Abuse- Incapacitated Victim (Maximum Life Sentence)
INVESTIGATING AGENCIESNaval Criminal Investigative Service
Marine Corps Criminal Investigation Division*The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
More Than 50 Guns Seized and Four Men Charged in Illegal Firearms Trafficking OperationRead the Press Release
SAN DIEGO – Four men appeared in federal court today and yesterday to face charges that they participated in a scheme to manufacture and traffic in firearms illegally, in some instances by assembling untraceable assault-style weapons in a defendant’s home and then selling the guns for thousands of dollars.
Federal, state and local law enforcement officials served multiple search warrants and made the arrests Friday at locations in Bonsall and Escondido and Temecula. During the searches and throughout the investigation, agents seized more than 50 firearms, including silencers, a short-barreled shotgun, unfinished lower receivers and AR-15-style homemade assault rifles. Some of the firearms were stolen, or had obliterated serial numbers, or both. Agents also found thousands of rounds of ammunition.
Christian Romero, Clay Bautista-Marquez, Ruben Tovar-Ordonez and Matthew Nutt were taken into custody separately on Friday. Romero and Nutt are charged via complaint with engaging in the business of manufacturing and dealing in firearms without a license; Bautista and Tovar are charged via indictment with unlawful dealing in firearms.
A fifth man, Michael Martin, was also arrested and charged via complaint with possession of a firearm – specifically two silencers - not registered to him in the National Firearms Registration and Transfer Record.
All but Martin were held without bond, pending upcoming detention hearings. Martin was to be released on a $20,000 bond.
During the searches Friday, agents also found numerous unfinished lower receivers commonly known as ULRs. ULRs can be lawfully purchased and sold by individuals who do not possess a Federal Firearms License because they are not considered firearms. Manufacturers are not required to mark ULRs with make, model and serial number. They can be manufactured into completed receivers, which are classified as firearms under federal law. An individual engaged in the business of manufacturing completed receivers or dealing in completed receivers is required to have a Federal Firearms License. Otherwise, doing so is a violation of federal law.
“Firearms traffickers who fly under the radar of law enforcement, assembling dangerous and untraceable assault-style weapons in the privacy of their homes, are a significant challenge and a major concern to me,” said U.S. Attorney Laura Duffy. “Because of this investigation, scores of these guns have been removed from the underground market and our communities are safer as a result.”
Many of the assault rifles seized by agents were manufactured from unfinished lower receivers. ATF Special Agent in Charge Carlos A. Canino stated, “These weapons are particularly dangerous because they bear no manufacturer markings or serial numbers making them virtually impossible to trace.” Canino added, “When law enforcement officials join forces in this type of investigation, the result is a significant disruption in violent crime.”
DEFENDANT Case Number: 15MJ0740 Matthew Nutt Age: 29 Escondido, California CHARGESEngaging in the Business of Dealing in Firearms without a License, in violation of 18 USC 922(a)(1)(A)
Maximum Penalties: Five years imprisonment, a fine of not more than $250,000, and a term of supervised release of not more than 3 years.
DEFENDANT Case Number: 15MJ0721 Christian Romero Age: 21 Bonsall, California CHARGESEngaging in the Business of Dealing in Firearms without a License, in violation of 18 USC 922(a)(1)(A)
Maximum Penalties: Five years imprisonment, a fine of not more than $250,000, and a term of supervised release of not more than 3 years.
DEFENDANTS Case Number: 14CR3360 Clay Bautista-Marquez Age: 30 Bonsall, California Ruben Tovar-Ordonez Age: 45 Temecula, California CHARGESUnlawful Dealing in Firearms, in violation of18 USC 922(a)(1)(A). Maximum Penalties Five years imprisonment, a fine of not more than $250,000, and a term of supervised release of not more than 3 years.
DEFENDANT Case Number: 15mj0741 Michael Martin Age: 38 Bonsall, California CHARGESPossession of a Firearm not Registered to him in the National Firearms Registration and Transfer Record, 26 U.S.C. § 5861(d). Maximum Penalties: Ten years in prison, $10,000 fine.
INVESTIGATING AGENCIESDrug Enforcement Administration
Bureau of Alcohol, Tobacco, Firearms and Explosives
Internal Revenue Service
Bureau of Land Management
San Diego Police Department
Immigration and Customs Enforcement –Enforcement and Removal Operations
United States Marshal’s Service
San Diego Sheriff’s Department*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.
Owner of Mussari Motors, Inc. Sentenced to Two Years in Prison for Failing to Report That He Received $719,000 in Cash from A Drug TraffickerRead the Press Release
SAN DIEGO – John Frank Mussari Jr, owner of Mussari Motors Inc., a luxury car dealership in San Diego, was sentenced in federal court today to 24 months in prison for conspiring with a drug trafficker to evade laws requiring disclosure of cash transactions exceeding $10,000.
According to his plea agreement, Mussari admitted that he failed to report receiving $719,000 in cash from the drug trafficker, who purchased several high-end vehicles including a Ferrari and Porsche during a four-month period.
Under federal law, each person engaged in an automobile dealership, who in the course of that business, receives more than $10,000 in cash in one transaction or in two or more related transactions, must file “Report of Cash Payments Over $10,000 in Trade or Business” with the Financial Crimes Enforcement Network (FINCEN) within 15 days. Mussari admitted that he and the trafficker, who was identified in the plea agreement only as J.B., intentionally and willfully conspired with each other to avoid filing any of the required forms.
During his guilty plea in September 2014, Mussari admitted that he received $132,000 in cash for a Ferrari, $115,000 in cash for a Lamborghini, $147,000 in cash for a Porsche, and $205,000 for another Lamborghini. Mussari also admitted that he received $80,000, $60,000, and $31,000 in cash from the drug trafficker.
According to court documents, Mussari was initially detained attempting to leave in a Lamborghini at the time federal and state agents searched the residence of the drug trafficker’s home in Fallbrook, California. Agents found about $205,000 cash in Mussari’s Lamborghini. The money was forfeited to the United States.
U.S. District Judge Gonzalo P. Curiel ordered Mussari to report to prison on June 5, 2015. Mussari has been free on bond.
DEFENDANT Case Number: John Frank Mussari, Jr. Age: 48 San Diego, California CHARGESConspiracy to Evade Reporting Requirements Received in Business, in violation of Title 18, U.S.C., Section 371. Maximum penalty: Five years in prison and $250,000 fine.
INVESTIGATING AGENCIESInternal Revenue Service
Drug Enforcement AdministrationCorporate CEO Admits Defrauding ShareholdersRead the Press Release
SAN DIEGO - Mark Lopez, former Chief Executive Officer of San Diego-based Unico, Inc., pleaded guilty in federal court today, admitting he defrauded shareholders in a sophisticated stock fraud scheme. Lopez entered his plea before District Court Judge Gonzalo P. Curiel to conspiring to commit securities fraud, and was ordered to return for sentencing on May 15, 2015.
According to court documents, from 2004 through June 2012, Lopez was the CEO of Unico, Inc., a San Diego-based holding company with mining interests in Utah. Because Unico’s stock was publicly traded, it was prohibited from issuing and transferring new shares of stock without having them registered with the U.S. Securities and Exchange Commission (“SEC”).
There are some narrow exemptions to this registration requirement, however, including “Section 3(a)(10)” of the Securities Act of 1933. Under Section 3(a)(10), a company such as Unico can issue and transfer exempt shares of its unregistered stock if: (a) the purpose is to settle a “bona fide debt;” and (b) the issuance is approved at a “fairness hearing” held by a court or other governmental authority.
Lopez admitted that beginning in or about December 2006, he agreed with co-conspirators to execute a scheme to defraud shareholders by deceptively using the Section 3(a)(10) exemption in order to issue and sell millions of unregistered shares of Unico stock, and then split the proceeds from the resulting sale. The scheme involved a $500,000 loan (or “convertible debenture”) made to Unico by a company called Outboard Investments. The terms of the debenture agreement (the “Outboard Debenture”) gave Outboard the right to seek repayment either in cash or in the form of Unico stock.
According to court documents, on December 1, 2006, Outboard assigned the debt to a company headquartered in the Turks & Caicos called Sequoia International, Inc. (“Sequoia”). After Unico’s default, as part of the conspiracy, on December 7, 2006, the conspirators caused Sequoia and Outboard to file a complaint against Unico in state court in Sarasota, Florida (a jurisdiction to which neither party had any connection).
The lawsuit was designed to give the appearance that Unico was contesting its liability under the Outboard Debenture, when in truth Defendant had already agreed to use the lawsuit as a way to issue unregistered shares. On the day of the filing, Lopez signed a settlement agreement on behalf of Unico that asked the court to permit the issuance of 350 million shares of Unico common stock to Sequoia. Lopez and the conspirators knowingly concealed from the state court the material fact that by so doing, Lopez had agreed to settle the $500,000 Outboard Debenture with Unico stock worth over $2.6 million. Based on these misrepresentations and omissions, the Florida court unwittingly approved the settlement agreement and allowed Unico to issue the shares to Sequoia. Defendant then secretly arranged for Sequoia to return over $1,067,000 in proceeds from the sale of this stock.
To continue the deception of shareholders and the public, Lopez signed and submitted to the SEC a Form 10-QSB (a publicly available quarterly report) as Unico’s CEO, according to court records. In that filing, Lopez falsely characterized Unico’s receipt of stock sale proceeds from Sequoia in order to deceive shareholders into believing that the Florida case was a bona fide lawsuit that was settled after a “fairness” determination.
U.S. Attorney Laura Duffy thanked the Securities and Exchange Commission for its assistance in the investigation and prosecution of Lopez’s complex securities fraud.
DEFENDANTS Case Number: 12CR5236-GPC Mark Lopez Age: 50 San Diego, California CHARGESCount 1: Conspiracy to Commit Securities Fraud, in violation of 18 U.S.C. § 1349.
INVESTIGATING AGENCIES
Maximum Penalties: 25 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.Federal Bureau of Investigation
Convicted Child Pornographer Who Targeted Daycare Attendees Sentenced to 40 Years in PrisonRead the Press Release
SAN DIEGO – William Michael Howard was sentenced today to 40 years in prison for creating sexually explicit videos of three girls - ages 3, 5 and 7 - who attended a San Diego daycare operated by his girlfriend’s family.
Howard, 24, pleaded guilty in September 2014 to three counts of sexual exploitation of a minor. In his plea agreement, he admitted videotaping each girl’s private parts in three separate instances in 2013 and early 2014. One video was recorded when the 7-year-old was in his care. In the videos, Howard’s voice can be heard or one of his hands is seen removing a child’s clothing and posing her for the camera.
U.S. District Judge William Q. Hayes also ordered a lifetime of supervision following his release.
DEFENDANTS Case Number: 14CR1430 William Michael Howard Age: 24 San Diego, California CHARGESCounts 1-3: Title 18, United States Code, Section 2251(a) – Sexual Exploitation of a Minor; Maximum Penalty 30 years in prison per count, and mandatory minimum 15 years per count; Maximum $250,000 fine.
INVESTIGATING AGENCIESSan Diego Police Department
Internet Crimes Against Children Task ForceTwo Smugglers Sentenced for Leaving A Pregnant Woman to Die in the Otay Mountain WildernessRead the Press Release
SAN DIEGO – Two alien smugglers who left a pregnant woman to die in the rugged Otay Mountain wilderness during an ill-fated border-crossing attempt were sentenced in federal court today for actions that ultimately resulted in her death.
With the woman’s widower and three children in the courtroom, U.S. District Judge Cathy A. Bencivengo sentenced Carlos Hernandez-Palma to 84 months in prison, and Fernando Armenta-Romero to 57 months. Hernandez and Armenta pleaded guilty in October 2014 to Bringing in an Illegal Alien Resulting in Death and Bringing in an Illegal Alien for Financial Gain.
According to court records, the woman’s husband, Baltazar Razo-Barreto, repeatedly pleaded with the smugglers to use their cellular phone to call for assistance when his wife became gravely ill in the craggy, remote terrain. The smugglers refused. Ultimately the husband was forced to leave his wife, Jaqueline Capistran-Ochoa, to seek help, and the smugglers eventually abandoned her.
“These smugglers showed a profound lack of humanity when they refused to call for help and left a dying woman alone in the middle of nowhere,” said U.S. Attorney Laura Duffy. “This tragic case serves as a brutal reminder that attempting to cross into the United States illegally – and putting your faith, hope and future in the hands of mercenaries - is a very dangerous proposition and not worth the gamble. My office will aggressively prosecute those who smuggle illegal aliens into the United States for financial gain, place vulnerable people in grave danger, and needlessly cause deaths.”
On or about December 29, 2013, at approximately 7:10 PM, the Border Patrol Search Trauma and Rescue unit responded to a report of a 32-year-old undocumented alien female abandoned in the Otay Mountain Wilderness near the U.S.-Mexico border in southeastern San Diego County. This is a rugged and isolated area, with limited access to roads and no development.
Border Patrol agents contacted the reporting party, later identified as Razo, who identified himself as the husband of the missing woman. He told the agents that Ms. Capistran had been in medical distress when he left her in the care of others while he sought help.
After an extensive search of the mountainous area over a period of two days, the husband eventually led Border Patrol agents to an area where they discovered Ms. Capistran’s body. According to the medical examiner, Ms. Capistran’s death was attributed to hyperglycemia and ketoacidosis due to diabetes mellitus and hypothermia from environmental exposure. The medical examiner reported that Ms. Capistran was pregnant and estimated the gestational age of the fetus at approximately 11 to 12 weeks.
As indicated in court documents, Mr. Razo and his wife made arrangements with the smugglers in Mexico to be brought illegally into the United States in December 2013. The smugglers identified themselves to Mr. Razo as “CARLOS” (Hernandez) and “ARMENTA.” The smugglers told Mr. Razo that they would smuggle him and Ms. Capistran into the United States in exchange for a total smuggling fee of $12,000.
During their discussion, the smugglers explained that the journey from Mexico into the United States would take 1.5 to 2 days, including frequent breaks. The smugglers added that it was not particularly arduous as the terrain was mostly flat. The smugglers told Mr. Razo that the hardest part was climbing the U.S.-Mexico border fence. Mr. Razo relayed this information to Ms. Capistran. She had developed diabetes after the birth of their second child and was on diabetes medication. They also suspected that she might be pregnant.
Before leaving Tijuana, Mexico, for their journey into the United States, the smugglers took Ms. Capistran for walks around the park to determine whether she was fit to make the trip, especially since she appeared overweight and tired. Ms. Capistran walked with the smugglers through the park, but often grew tired and repeatedly required rest stops. The smugglers argued amongst themselves as to whether she could make the smuggling trek and even tried to recruit others to replace Mr. Razo and Ms. Capistran. Despite their misgivings and given their inability to recruit anyone else willing to pay them $12,000, they decided to take a chance on Mr. Razo and Ms. Capistran. On or about December 26, 2013, Hernandez and Armenta smuggled Mr. Razo and Ms. Capistran into the United States by climbing over the U.S./Mexico boundary fence in Tijuana, Mexico.
Notwithstanding the smugglers’ description of the terrain as mostly flat, the hike was mountainous, covered with large boulders and difficult to traverse. After approximately two days, Ms. Capistran began to slow down and required more frequent rest stops. Ms. Capistran told Mr. Razo that she felt like there was water in her lungs, and she was having a hard time breathing. Soon she was unable to walk at all.
Mr. Razo repeatedly pleaded with the smugglers to seek help and to use their cellular phone. The smugglers refused. They claimed the phone did not work and that it had been destroyed. After the third day, on December 29, 2013, Ms. Capistran was unresponsive. Since the smugglers refused to seek help, Mr. Razo left his wife in the smugglers’ care and hiked into the wilderness on his own. Mr. Razo eventually was able to contact his brother. The brother picked up Mr. Razo and called 911, and dispatchers connected them to the Border Patrol for assistance.
By the time Border Patrol agents and Mr. Razo found Ms. Capistran in the Otay Mountain wilderness, it was too late. Ms. Capistran had been left to die on a trail in the mountains. The smugglers were gone. They had hiked out of the mountains two days before and called Armenta’s brother to pick them up.
In addition to the prison sentences, Judge Bencivengo ordered that CARLOS and ARMENTA each serve a term of three years of supervised release.
DEFENDANTS Case Number: 14CR02766-CAB Fernando Armenta-Romero Age: 43 Carlos Hernandez-Palma Age: 35 CHARGESCount 1: Title 18, United States Code, Section 1324 – Bringing in Illegal Alien Resulting in Death – statutory maximum of death or life imprisonment, a maximum fine of $250,000, a 5-year term of supervised release, and $100 special assessment.
Count 2: Title 18, United States Code, Section 1324 - Bringing in Illegal Alien for Financial Gain – statutory minimum of three years, statutory maximum of 10 years, a maximum fine of $250,000, a 3-year term of supervised release, and $100 special assessment. INVESTIGATING AGENCIESBorder Patrol - Chula Vista Intelligence Division
Three Women Plead Guilty in Armenian Alien Smuggling RingRead the Press Release
SAN DIEGO, CA – Three Glendale, California women pleaded guilty today in federal court to smuggling Armenian nationals into the United States as part of an international smuggling organization.
Varduhi Avagyan, 42, Meri Avetsiyan, 40, and Maria Yanakopulus, 57, all admitted their roles in a transcontinental conspiracy to bring undocumented Armenian nationals illegally into the United States in exchange for thousands of dollars.
As part of their guilty pleas, the three admitted to conspiring to traffic Armenian nationals from Armenia to the United States by way of Moscow, Russia and Cancun, Mexico. The Armenian nationals were charged up to $18,000 each to be brought into the United States. The three would procure valid U.S. entry documents and attempt to bring the Armenian nationals into the United States as imposters to those documents.
Avagyan and Avetisyan were arrested on November, 1, 2013 attempting to smuggle two Armenian nationals into the country. Yanakopulus was arrested on September 5, 2014.
All three pleaded guilty to conspiracy to bring in illegal aliens for financial gain and encouraging and inducing illegal aliens. They are scheduled to be sentenced before U.S. District Judge Michael M. Anello on May 11, 2015.
DEFENDANTS Case Number: 14CR1646-MMA Varduhi Avagyan Age: 42 Glendale, California Meri Avetsiyan Age: 40 Glendale, California Maria Yanakopulus Age: 57 Glendale, California CHARGESConspiracy, 18 U.S.C. § 371 Five year maximum sentence, $250,000 fine
INVESTIGATING AGENCIESHomeland Security Investigations