Southern District of California
Press releases recorded for this federal judicial district.
U.S. Attorney’s Office Filed 131 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 131 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On May 31, 2025, Brenda Esmeralda Sanchez and Marlen Yamille Salmoran, United States citizens, were arrested and charged with False Personation of Immigration Matters and Aggravated Identity Theft. According to a complaint, Sanchez and her adult daughter, Salmoran, attempted to cross the border at the San Ysidro Port of Entry with an unaccompanied undocumented child from Mexico by presenting Customs and Border Protection officers with a genuine U.S. birth certificate belonging to Sanchez’s son. Sanchez has two prior arrests for alien smuggling.
- On May 31, Ricardo Cuevas Diaz and Luis Armando Bojorquez Cazarez, Mexican citizens with border-crossing cards, were arrested and charged with Importation of a Controlled Substance. According to a complaint, when the two men attempted to cross the border at the Otay Mesa Port of Entry, Customs and Border Protection Officers found 128 packages containing 133 pounds of methamphetamine concealed in the air filter, firewall, roof, quarter panels and rear bed of the vehicle.
- On May 31, Alexis Nicolas Zamora Raglands and Jorge Luis Prieto Lopez, both Mexican nationals and alleged captains of a panga boat transporting 14 other undocumented immigrants, were arrested and charged with Attempted Bringing in Aliens for Financial Gain. According to a complaint, the boat was intercepted by the U.S. Coast Guard about 23 nautical miles from San Clemente Island. Seven of the passengers were also arrested and charged with Attempted Reentry after Deportation.
Pursuant to the Department’s Operation Take Back America priorities, federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Foreign Nationals Charged with Conspiracy and Possession with Intent to Distribute Almost Four Tons of MethamphetamineRead the Press Release
SAN DIEGO – A federal complaint was filed today charging Erick Arriola, Baltazar Rodriguez Reyes and Eugenio Lizama, alleged drivers of drug-laden vans and a truck, with conspiring to distribute almost four tons of methamphetamine.
It was one of the biggest seizures of methamphetamine in 2025 in the Southern District of California, and the most significant so far by the new Homeland Security Task Force San Diego, which was recently established by the Department of Justice and Department of Homeland Security at the request of President Trump.
Among other goals, the task force was created to identify and target for prosecution transnational criminal organizations engaged in drug trafficking, money laundering, weapons trafficking, human trafficking and smuggling, homicide, extortion, and kidnapping.
The complaint alleges that on June 2, 2025, federal law enforcement officials were conducting surveillance on four vehicles - which included two white panel vans, a white Ford F150 truck, and a semi-truck - as they congregated in a parking lot in the 8200 block of Otay Mesa Road.
According to the complaint, bundles in each vehicle had been moved from the large semi-truck into the other vehicles while in the parking lot. The three defendants drove in separate directions before they were ultimately arrested by United States Border Patrol. Each vehicle was stuffed with large bundles of methamphetamine.
Arriola, of El Salvador, was present in the United States despite being a felon convicted of DUI, battery of a spouse, and false imprisonment. Rodriguez Reyes and Lizama are Mexican nationals.
“The recent formation of Homeland Security Task Force San Diego is an essential step to fulfilling the promises of Operation Take Back America,” said U.S. Attorney Adam Gordon, “Our Office will fully support these enhanced law enforcement partnerships to ensure the safety of our community.”
“As a founding member of HSTF in San Diego, I’m thrilled to be working alongside our partners who have also committed resources to combatting transnational crime,” said Shawn Gibson, special agent in charge for HSI San Diego. “Cases under the HSTF will be a priority for me and staff as we all will continue to work together to secure our border and keep our communities safe.”
“Collaboration between law enforcement agencies greatly helps to effectively combat transnational criminal organizations,” said Acting Chief Patrol Agent Jeffrey Stalnaker. “The leveraging of our unique capabilities amplifies our ability to safeguard the nation.”
“When we combine our unique capabilities, authorities, strengths, and assets, we create a unified response to the expansive cartel threat,” said FBI San Diego Acting Special Agent in Charge Houtan Moshrefi. “FBI San Diego will continue to collaborate with our law enforcement partners to reduce the growing epidemic of drug trafficking and violence in our community.”
This case is being prosecuted by Assistant U.S. Attorney Kyle Martin of the U.S. Attorney’s recently created Narcoterrorism Unit.
DEFENDANTS Case Number 25mj3112
Erick Omar Arriola Age 27 El Salvador
Baltazar Rodriguez Reyes Age 49 Mexico
Eugenio Lizama Age 35 Mexico
SUMMARY OF CHARGES
Title 21, U.S.C., Sec. 841(a)(1), (b)(1)(B) – Possession with Intent to
Distribute Methamphetamine
Maximum penalty: Life; 10-year mandatory minimum sentence
Title 21, U.S.C., Sec. 841(a)(1), 846 – Conspiracy to Distribute Methamphetamine
Maximum penalty: Life; 10-year mandatory minimum sentence
INVESTIGATING AGENCIES
Homeland Security Investigations
Federal Bureau of Investigation
United States Border Patrol
San Diego County Sheriff’s Department
This case was investigated and prosecuted by the Homeland Security Task Force (HSTF) San Diego as part of Operation Take Back America. HSTFs, which were established by President Trump in Executive Order 14159, Protecting the American People Against Invasion, are joint operations led by the Department of Justice and the Department of Homeland Security. Operation Take Back America is a nationwide federal initiative that marshals the full resources of the Department of Justice to, among other goals, achieve the total elimination of cartels and transnational criminal organizations, and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces and Project Safe Neighborhoods.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
GirlsDoPorn Owner Michael Pratt Pleads Guilty to Sex TraffickingRead the Press Release
SAN DIEGO – Michael Pratt, the mastermind behind the GirlsDoPorn sex trafficking ring, pleaded guilty in federal court today to multiple sex trafficking counts.
Pratt, who was the owner of the website GirlsDoPorn, was charged in October 2019 in the Southern District of California with sex trafficking crimes in connection with a scheme to deceive and coerce young women to appear in pornographic videos. Pratt liquidated his assets and fled the United States in mid-2019. He was named to the FBI’s Top Ten Most Wanted list and lived as an international fugitive for more than three years until his arrest in Spain in December 2022 and extradition to San Diego in March 2024.
According to public court filings, Pratt and his co-defendants used force, fraud, and coercion to recruit hundreds of young women – most in their late teens – to appear in GirlsDoPorn videos. In his plea agreement, Pratt pleaded guilty to Count One (conspiracy to sex traffic from 2012 to 2019) and Count Two (Sex trafficking Victim 1 in May 2012) of the superseding indictment.
In connection with Count 1, Pratt admitted the following:
He was the owner and operator of the pornography website GirlsDoPorn, which featured sex videos of young adult women appearing in their first pornographic video. Pratt came up with the idea for the website, recruited women to appear in the videos, sometimes transported the women to and from the site of the video shoot, sometimes manned the camera for the videos, and otherwise managed the business.
In around 2012, Pratt recruited his co-defendant Matthew Wolfe to work for him. Wolfe operated GirlsDoPorn and GirlsDoToys (an offshoot of GirlsDoPorn which featured many of the same women appearing in pornographic videos with sex toys). The two websites were run by Pratt as a single business venture. Both websites were supported by the same employees operating out of a shared office in San Diego.
Throughout the conspiracy, GirlsDoPorn and GirlsDoToys received millions of views. To promote the websites, video content from both sites was posted on free porn sites such as Pornhub.com, one of the world’s most visited websites. The videos from GirlsDoPorn and GirlsDoToys posted on PornHub were often viewed millions of times according to PornHub’s own view counters. The websites charged visitors a subscription fee to access content, and generated millions of dollars in revenue for Pratt.
To recruit young women to appear in videos for the websites, Pratt and some of his employees (at Pratt’s direction) often told the prospective models that their sex videos would never be posted on-line, that the videos would never be released in the United States, and that no one who knew the women would ever find out about the video, representations that Pratt and other members of the conspiracy knew were false. Women from various places throughout the United States and Canada were recruited to appear in videos based on these material misrepresentations.
In 2013, Pratt recruited co-defendant Ruben Andre Garcia. the male model who engaged in sex acts on video with the women. As a part of the scheme, Garcia found young women (“Reference Girls”) to falsely reassure prospective models that the videos would not be posted on-line and that none of the models’ friends, families, colleagues or classmates would ever find out. Garcia used the Reference Girls, because he believed that the victims were more likely to believe other young women. Pratt knew about the Reference Girls and paid them a fee for each model that they attempted to recruit.
As a part of the scheme, Pratt and other members of the conspiracy took steps to ensure that the victims did not find out that Pratt and the other members of the conspiracy owned and operated GirlsDoPorn and GirlsDoToys. These steps included the intentional omission of any reference to the websites in statements that Pratt and others made to prospective models and in company names and documents, including the contracts that the prospective models signed. The business was instead often identified by innocuous names, such as “Begin Modeling,” “Bubblegum Casting” or “BLL Media.”
Most of the sex videos created as part of the conspiracy were shot at hotels or short term rental units in the San Diego area. Pratt, Wolfe or co-defendant Theodore Gyi served as the camera men for these video shoots.
Once the women arrived at the hotel or short term rental unit, Pratt, Garcia, Wolfe and/or Gyi continued to falsely assure the women that the videos would not be posted on-line and that no one who knew the victims would find out. The women were told that the contracts simply said what the women had already been told, including that the videos would not be posted on-line. Women were not provided with a copy of the contracts that they signed, even though some of them asked for copies.
If the women told Pratt or his co-conspirators that they wanted to stop making the video, Pratt or his co-conspirators threatened to sue the women, cancel flights home, and post the videos on-line if the women did not complete the sex videos.
Pratt became aware that personal identifying information and social media accounts for some models were being posted on Pornwikileaks.com, a site dedicated to exposing the true identities of individuals appearing in sex videos. Even after Pratt became aware of this, Pratt instructed his employees to assure prospective models that no one would ever find out about their video shoot or learn their identity.
In connection with Count 2, Pratt admitted the following:
In May 2012, Pratt, using the alias “Matt,” recruited Victim 1. The original Craigslist advertisement was for modeling, and it was posted under the name Bubblegum Casting. Victim 1 responded to the ad and communicated with Pratt. Pratt explained that the job was actually to shoot an “adult video.” Pratt falsely assured Victim 1 that her video would only be seen in Australia by private clients and would not be posted on the internet. Victim 1 was 18 years old at the time of these conversations.
Victim 1 initially declined, but Pratt referred her to a Reference Girl to convince Victim 1 to do the video and reassure Victim 1 that her video would not be posted on-line. Relying upon assurances by Pratt and the Reference Girl, Victim 1 flew from a state outside of California to San Diego for the video shoot. Pratt picked Victim 1 up at the airport and drove her to a hotel in San Diego. Pratt operated the camera. He directed and filmed the sex video.
Prior to making the video, Pratt rushed Victim 1 through a contract and did not provide her with a copy. Pratt had promised Victim 1 that the video would take 30 minutes, but it took hours to film. Once the video was done, Pratt gave Victim 1 $2,000.
Victim 1’s video was posted on GirlsDoPorn approximately nine months after the shoot. Victim 1 contacted Pratt after her video was posted to the GirlsDoPorn website and begged Pratt to take her video down. Pratt did not reply and did not take the video down.
Garcia was sentenced to 20 years in prison on June 14, 2021. Theodore Gyi was sentenced to four years in prison on November 9, 2022. Matthew Wolfe was sentenced to 14 years in prison on March 20, 2024. Valorie Moser, the office manager, is set for sentencing on September 12, 2025.
Pratt’s sentencing is scheduled for September 8, 2025, at 9 a.m. before U.S. District Judge Janis L. Sammartino.
DEFENDANTS Case Number 19cr4488-JLS
Michael Pratt Age: 42 To be sentenced September 8, 2025
Matthew Wolfe Age: 43 Sentenced to 14 years on March 20, 2024
Ruben Andre Garcia Age: 36 Sentenced to 20 years on June 4, 2021
Theodore Gyi Age: 47 Sentenced to 4 years on November 9, 2022
Valorie Moser Age: 42 To be sentenced on September 12, 2025
SUMMARY OF CHARGES
Sex Trafficking Conspiracy – Title 18, U.S.C., Section 1594
Maximum penalty: Life in prison and $250,000 fine
Sex Trafficking – Title 18, U.S.C., Section 1591
Mandatory Minimum: Fifteen years in prison
Maximum penalty: Life in prison and $250,000 fine
INVESTIGATING AGENCY
Federal Bureau of Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Owner of Santee Trucking Company Charged in $2 Million Credit Card SchemeRead the Press Release
SAN DIEGO – Hasan Korkmaz, the owner and operator of San Diego Logistics Group Inc., a Santee trucking company, was arraigned in federal court today on an 18-count indictment charging him with bank fraud, money laundering and aggravated identity theft.
According to the indictment, in 2022 and 2023, Korkmaz executed a credit card “bust-out” scheme - where fraudsters establish seemingly legitimate credit card accounts and then “bust out” by maxing out the credit line with no intention of paying the balance.
The indictment alleges that Korkmaz obtained names, dates of birth, social security numbers and other personally identifiable information corresponding with real individuals. Korkmaz then applied for numerous credit card accounts with that information. After opening the fraudulent credit cards accounts, Korkmaz allegedly used the credit cards to incur charges at various businesses, including Korkmaz’s San Diego Logitistics Group Inc. The charges were in the thousands of dollars each, including some charges as high as $18,500 in a single transaction.
To perpetuate the scheme, Korkmaz also made fraudulent payments, with checks drawn on accounts with insufficient funds or drawn on non-existent accounts, to the credit card accounts, thereby temporarily restoring the available credit limits, the indictment said. Korkmaz would then incur additional charges on the credit card accounts at or near the maximum credit limits for the accounts.
As alleged in the indictment, Korkmaz laundered the bank fraud proceeds, including by transferring proceeds from the fraud scheme to a Turkish bank account controlled by Korkmaz. In total, Korkmaz caused over $2,103,000 in losses to two banks.
This case is being prosecuted by Assistant U.S. Attorneys Kevin Mokhtari and Christopher Alexander.
DEFENDANT Case Number 25-cr-1405-JES
Hasan Korkmaz Age: 44 Las Vegas, NV
SUMMARY OF CHARGES
Counts 1-12 - Bank Fraud - Title 18, U.S.C., Section 1344(2)
Maximum penalty: Thirty years in prison; a maximum $1 million fine
Counts 13-14 - Money Laundering – Title 18, U.S.C., Section 1957
Maximum penalty: Twenty years in prison; a maximum $500,000 fine or twice the amount of monetary instruments involved in the offense, whichever is greatest
Counts 15-18 - Aggravated Identity Theft – Title 18, U.S.C. Section 1028A
Maximum penalty: Mandatory minimum sentence of two years in prison, to run consecutively to the specified felony
INVESTIGATING AGENCY
Federal Bureau of Investigation
U.S. Attorney’s Office Filed 135 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 135 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On May 28, Leonardo Arturo Sandez Leal, a United States citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Customs and Border Protection officers at the Otay Mesa Port of Entry discovered 110 packages of methamphetamine weighing 125 pounds, and 10 packages of cocaine weighing 27 pounds, concealed in the rear quarter panels, floor, seats and center console of the vehicle the defendant was driving.
- On May 23, Jorge Luis Perez-Florez and Rumualdo Morales-Perez, both Mexican nationals, were arrested and charged with Attempted Bringing in Aliens for Financial Gain. According to a complaint, the defendants were intercepted by the U.S. Coast Guard off Point Loma with multiple undocumented Mexican nationals aboard their boat. Morales-Perez was previously deported to Mexico on March 20, 2025, through Laredo, Texas.
- On May 29, Noel Lopez Uribe, a Mexican national, was arrested and charged with Deported Alien Found in the U.S. According to a complaint, a Border Patrol agent discovered the defendant hiding near some brush in Otay Mesa. Lopez Uribe was most recently removed from the U.S. in April 2025.
Also recently, a number of defendants with criminal records were convicted by a jury or sentenced for border-related crimes such as illegally re-entering the U.S. after previous deportation. Here are a few of those cases:
- On May 30, Raul Diaz, a citizen of Colombia, was sentenced in federal court to six months in custody for attempting to re-enter the U.S. illegally. He was previously convicted in November 2014 of embezzling nearly $114,000 of public money.
- On May 30, 2025, Temo Duble-Chaparro, a Mexican national with no permission to enter the United States, was sentenced to 18 months in custody for illegal reentry of a removed alien, to be followed by a four month consecutive sentence for violating the conditions of his supervised release. This was the defendant’s fourth federal immigration conviction in as many years. He previously had been convicted of alien smuggling and illegal reentry.
Pursuant to the Department’s Operation Take Back America priorities, federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Mexico City-Based Attorney Pleads Guilty in $52 Million Dollar Sinaloa Cartel Money Laundering SchemeRead the Press Release
SAN DIEGO – Hector Alejandro Paez Garcia, a Mexico City-based attorney, has pleaded guilty in federal court, admitting that he and others conspired to transport, transmit, and transfer tens of millions of dollars in drug trafficking proceeds from the United States to Mexico.
Paez’s plea is part of a long-term FBI investigation targeting a Mexico-based money laundering organization (MLO) that is believed to have laundered at least $52.7 million for the Sinaloa Cartel before the organization’s leaders were arrested.
According to court documents, the MLO utilized a network of shell companies in San Diego to launder tens of millions of dollars in bulk cash from across the country generated through the Sinaloa Cartel’s drug importation and distribution operations. MLO employees travelled to dozens of U.S. cities to pick up this bulk cash in amounts up to $200,000. The money was then funneled through the San Diego-based shell companies and delivered to money laundering accounts in Mexico controlled by Paez, who in his plea agreement admitted serving a managerial role in the MLO’s operations.
During the investigation, FBI agents seized 66 money laundering bank accounts throughout the United States. As the FBI began to target and seize the MLO’s assets, Paez turned to the use of cryptocurrency in an attempt to shield those assets from law enforcement. But the FBI was able to infiltrate and take down the MLO’s cryptocurrency laundering network.
To date, the investigation has resulted in the arrests of 11 people on money laundering charges and the seizure of more than $3.1 million in illicit assets. A related DEA investigation led to 24 additional arrests and asset seizures totaling $450,000.
In March 2025, six individuals and seven entities, including several of Paez’s co-conspirators, were the target of sanctions imposed by the Department of Treasury’s Office of Foreign Assets Control (OFAC). Treasury Sanctions Criminal Operators and Money Launderers for the Notorious Sinaloa Cartel | U.S. Department of the Treasury.
Paez is scheduled to be sentenced on August 15, 2025.
To date, in addition to Paez, additional participants in the scheme have been charged, including the following:
- Miguel Angel Encinas Gomez of Mexicali, México, leader of a Mexicali-based cell of MLO. Encinas pleaded guilty to laundering $35 million in bulk cash narcotics proceeds in July 2023.
- Hugo Andres Velasquez Pantza, a Colombian national who allegedly assisted the MLO in the implementation of cryptocurrency into their operations. Velasquez was subsequently targeted in an undercover FBI operation and arrested in Rome, Italy in January 2025. Velasquez was extradited to the United States in April 2025 and awaits trial.
- James Harmon Yarbrough of Apopka, Florida, who worked in partnership with Cevallos to receive $326,000 in illicit proceeds in a scheme to converting the funds to cryptocurrency. Yarbrough pleaded guilty in July 2023.
- Victoria Johanna Lopez, Jose Jesus Lopez, Jose Mayorga Martinez, and Gerardo Vasquez Jr. who allegedly worked as bulk cash couriers who handled and deposited bulk cash for the MLO. Victoria Lopez, Jose Lopez, Mayorga have pleaded guilty. Vazquez’s case is set for trial in September 2024.
- Jhonatan Suarez Florez of Auburndale, Florida, who used accounts associated with his Florida-based construction and door manufacturing businesses to receive and transmit funds belonging to the criminal organization. Suarez Florez pleaded guilty in December 2024.
- Alberto David Benguait Jimenez, an alleged leader of the MLO, remains a fugitive at this time. If anyone has information related to this individual, please contact the FBI at 858-320-1800.
This case is being prosecuted by Assistant U.S. Attorneys Paul Benjamin and Robert Miller. Former Assistant U.S. Attorney Owen Roth contributed significantly to the case. The FBI worked in close partnership with the Drug Enforcement Administration, Imperial County District Office, as well as Panamanian authorities, to seize the MLO’s assets and arrest multiple participants in the scheme.
The Justice Department’s Office of International Affairs worked with law enforcement partners in Italy to secure the arrest and extradition of Velasquez Pantza.
DEFENDANT Case Number 23cr0446
Hector Alejandro Paez Garcia Age: 43 Mexico City, Mexico
SUMMARY OF CHARGES
International Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h), and 1956(a)(2)(B)(i)
Maximum penalty: Twenty years in prison and $500,000 fine
INVESTIGATING AGENCY
Federal Bureau of Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. [use if applicable] Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Chula Vista Man Pleads Guilty in $51 Million Medicare Fraud SchemeRead the Press Release
SAN DIEGO – Chula Vista resident and businessowner Fernando Valenzuela Ayub pleaded guilty in federal court today, admitting that he conspired with others to launder millions of dollars of health care fraud proceeds and paid unlawful kickbacks.
According to his plea agreement, Valenzuela and co-conspirators owned and operated multiple durable medical equipment (DME) companies, which sold orthotics – including back, wrist, and knee braces – to Medicare beneficiaries. Valenzuela admitted that in operating the DME companies, he and co-conspirators paid unlawful kickback payments to sham marketing companies who provided bogus prescriptions for DME. In total, Valenzuela paid $3.7 million in kickbacks.
Valenzuela admitted that he used his DME companies to submit fraudulent claims to Medicare. Once Valenzuela’s DME companies were suspended from billing Medicare, Valenzuela conspired to put DME companies in the names of nominee owners while he maintained control of the companies and the monies received from Medicare. In total, Valenzuela billed Medicare approximately $51 million and was paid approximately $20 million, and ultimately laundered at least $14 million dollars of Medicare proceeds. As part of his guilty plea, Valenzuela agreed to forfeit $7,101,320.
Valenzuela’s sentencing is scheduled for August 15, 2025.
The case is being prosecuted by Assistant U.S. Attorney Blanca Quintero of the Southern District of California.
DEFENDANT Case Number 25cr2488-DMS
Fernando Valenzuela Ayub Age: 48 Chula Vista, CA
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison and $500,000 fine
INVESTIGATING AGENCIES
Federal Bureau of Investigation
U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG)
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
U.S. Attorney’s Office Filed 134 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 134 border-related cases this week, including charges of bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On May 16, Elizabeth Janeth Ramirez-Martinez, a U.S. citizen, was arrested and charged with Bringing in Aliens for Financial Gain. According to a complaint, Ramirez-Martinez was stopped at the Otay Mesa Port of Entry by Customs and Border Protection officers, who found a Vietnamese national crammed into a compartment in the dash of her vehicle. The undocumented immigrant told officers that before they made their way to the border, the defendant had placed him in the compartment and secured it using screws.
- On May 19, Fernanda Barrios Monzon, a legal permanent resident of the U.S., was arrested and charged with Bringing in Unlawful Aliens without Presentation and Importation of a Controlled Substance. According to a complaint, the defendant drove her vehicle through the San Ysidro Port of Entry but was stopped when a Customs and Border Protection officer noticed a man lying on the floor of the vehicle, under the feet of the defendant’s children. The officer further discovered 271 pounds of methamphetamine hidden throughout the vehicle.
- On May 20, Gustavo Hernandez Oliveros, was arrested and charged with Deported Alien Found in the U.S. According to a complaint, Border Patrol agents located Hernandez Oliveros hiding in brush about two miles north of the border and two miles east of the Otay Mesa Port of Entry. He was previously deported in November 2018.
Also recently, a number of defendants with criminal records were convicted by a jury or sentenced for border-related crimes such as illegally re-entering the U.S. after previous deportation. Here are a few of those cases:
- On May 23, Jair Valdez-Hernandez, a Mexican national who was previously convicted of felony attempted carjacking in 2017, was sentenced in federal court to 10 months in custody for illegally entering the U.S. After illegally reentering the U.S., in July 2024, Valdez-Hernandez was convicted of corporal injury to a spouse/cohabitant and within the two months following that conviction was arrested twice for violating domestic violence protective orders.
- On May 23, Rogelio Herrera-Rodriguez, a Mexican national who was previously convicted of voluntary manslaughter and corporal injury to a spouse causing great bodily injury and removed from the United States, was sentenced in federal court to 24 months for again reentering the U.S. illegally.
- On May 23, Sacramento Sagrero-Pahua, a Mexican national, was sentenced in federal court to 36 months in custody for bringing aliens to the United States for financial gain. On August 26, 2023, Sagrero-Pahua guided a group of eight illegal aliens into the United States near Otay Mountain before being caught by Border Patrol agents. Among the group Sagrero-Pahua guided was an armed guard, who brought a gun with him to protect the group as it traveled toward the U.S.-Mexico border.
- On May 19, 2025, Oscar Eduardo Audelo-Rodriguez, a Mexican national, who admitted to fleeing border patrol agents by boat in Mission Bay, was sentenced in federal court to 8 months in custody for alien smuggling.
Pursuant to the Department’s Operation Take Back America priorities, federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Guatemalan Drug Trafficker Sentenced to 14 YearsRead the Press Release
SAN DIEGO – Arnoldo Oswaldo Vargas-Samayoa, a Guatemalan national, was sentenced in federal court today to 14 years in prison for managing a cocaine trafficking organization that smuggled more than 1,000 pounds of cocaine into the United States from Guatemala.
Following his surrender to U.S. authorities in June 2024 at Los Angeles International Airport, Vargas-Samayoa pleaded guilty to charges of conspiracy to import cocaine that were filed in January 2020.
In imposing sentence, U.S. District Judge Cathy Ann Bencivengo noted that Vargas-Samayoa was a “manager of a very extensive international drug ring” and money laundering effort who did not make a “mistake” but rather “chose a lifestyle.”
Vargas admitted he sourced the cocaine from two different Guatemalan suppliers and coordinated delivery to a Mexico-based drug trafficker. Vargas and the Mexico-based trafficker arranged for the drugs to be hidden in vehicles and smuggled into the United States through ports of entry in Southern California and Southern Texas.
Vargas, whose communications were being intercepted by law enforcement, messaged with the trafficker while cocaine loads were being moved into the United States to confirm the drugs were successfully smuggled. Once in the United States, some of that cocaine was moved to the Chicago area for further distribution. Vargas received a commission of $1,000 U.S. dollars for each kilogram of cocaine he delivered to the Mexico-based trafficker.
“Cocaine continues to be a dangerous and highly addictive drug with devastating consequences for individuals and communities,” said U.S. Attorney Adam Gordon. “We remain committed to dismantling the entire supply chain—from powerful cartel leaders to street-level dealers—and ensuring that those responsible are held accountable.”
“This sentencing sends the message that those who traffic dangerous drugs into our country will be held accountable,” said Shawn Gibson, special agent in charge for HSI San Diego. “Thanks to the outstanding investigative work and strong domestic and international law enforcement partnerships, we were able to disrupt a key supply line of a major drug trafficking network. We remain committed to targeting high-level drug trafficking organizations and keeping deadly narcotics, like cocaine, out of our communities.”
The U.S. Attorney’s office has previously convicted, and the court has sentenced, multiple couriers attempting to smuggle narcotics for the same drug trafficking organization as well as individuals engaged in related money laundering efforts (see list below). Through the related investigation of this matter, law enforcement has seized more than 1,000 kilograms of cocaine, more than $2 million in bulk currency, and firearms.
Vargas’ father, Arnoldo Vargas Estrada, is the former mayor of Zacapa, Guatemala who was convicted by a jury in the Eastern District of New York in Case No. 90cr00855-SJF of five counts related to the importation of narcotics. He was sentenced to 365-months in custody. Vargas Estrada was one of the first Guatemalan drug traffickers to be extradited to the United States in the early 1990’s. He was released in 2017, returned to Guatemala, and then reelected as mayor of Zacapa holding that position until 2024.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
This case is being prosecuted by Assistant U.S. Attorney Larry Casper.
DEFENDANT Case Number 20CR00240-CAB
Arnoldo Oswaldo Vargas-Samayoa, aka “Lalo”, aka “Pedrito” Age: 50 Zacapa, Guatemala
SUMMARY OF CHARGES
Conspiracy to Distribute Cocaine – Title 21, U.S.C., Sections 960 and 963
Maximum penalty: Mandatory minimum 10 years and up to life in prison
RELATED SENTENCES
Case No. 17cr648-GPC
Defendant/Conviction Charge/Custodial Sentence
Walter Rovidio Ipina
Conspiracy to Distribute Cocaine (21 U.S.C. Sec. 841(a)(1), 846)
50 months
Zachary Vasquez
Conspiracy to Distribute Cocaine (21 U.S.C. Sec. 841(a)(1), 846)
66 months
Juan Angel Mexicano
Conspiracy to Distribute Cocaine (21 U.S.C. Sec. 841(a)(1), 846)
135 months
Luis Fernandez Oliva-Campos (18 U.S.C. Sec. 1956(h))
Conspiracy to Launder Monetary Instruments
31 months
David Castaneda-Solis
Conspiracy to Launder Monetary Instruments (18 U.S.C. Sec. 1956(h)) 70 months
Jacob Castillo-Lopez
Conspiracy to Distribute Cocaine (21 U.S.C. Sec. 841(a)(1), 846) 33 months
Case No. 18cr4414-GPC
Melchor Cardenas
Conspiracy to Distribute Cocaine
60 months
INVESTIGATING AGENCIES
Homeland Security Investigations
Customs and Border Protection
Student Pilot in Highway 76 Emergency Plane Landing Sentenced to 30 Months for Drug TraffickingRead the Press Release
SAN DIEGO – Troy Othneil Smith, a student pilot whose drug trafficking activity was discovered when his plane was forced to make an emergency landing on State Route 76 in Oceanside last fall, was sentenced in federal court today to 30 months in prison.
Smith pleaded guilty in January to two counts of possession of cocaine with intent to distribute – one count in connection with the emergency landing that occurred around 1:39 a.m. on September 26, 2024 and his attempt to hide a package of cocaine from responding officers; and the other in connection with Smith’s mailing of cocaine through the United States Postal Service in 2023.
In his plea agreement, Smith also admitted to relevant conduct discovered during the course of the investigation of at least two other occasions wherein Smith mailed cocaine through the U.S. Postal Service.
“Aviation privileges come with immense responsibility,” said U.S. Attorney Adam Gordon. “When those privileges are abused to facilitate drug trafficking, it undermines public safety and the trust placed in those who operate in our skies. We remain committed to working with our partners to detect, disrupt, and prosecute this kind of criminal activity wherever it occurs.”
This case is being prosecuted by Assistant U.S. Attorneys Lyndzie M. Carter and Joseph Orabona.
DEFENDANT Case Number 24-MJ-03788
Troy Othneil Smith Age: 36 Oceanside, CA
SUMMARY OF CHARGES
Possession of Cocaine with the Intent to Distribute– Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Twenty years in prison and $1 million fine
INVESTIGATING AGENCIES
Drug Enforcement Administration
United States Postal Inspectors
San Diego Field Division Narcotics Task Force Team 6
North County Narcotics Task Force
Oceanside Police Department
San Diego Man Charged with Smuggling Exotic Live BirdsRead the Press Release
SAN DIEGO – Ricardo Alonzo of San Diego appeared in federal court today to face charges that he smuggled 17 exotic birds into the United States from Mexico under the seat of his car.
According to a complaint, Alonzo was the driver and registered owner of a vehicle that was intercepted by U.S. Customs and Border Protection officers at the San Ysidro Port of Entry. Officers found four bags containing 10 Burrowing Parakeets, five Yellow-Crowned Amazon Parrots, and two Red-Lored Amazon Parrots underneath the rear seat. The two Red-Lored Amazon Parrot chicks did not survive; the surviving birds were transferred to a quarantine facility managed by the U.S. Department of Agriculture.
“Trafficking exotic birds isn’t just illegal — it’s cruel and dangerous,” said U.S. Attorney Adam Gordon. “These actions put the lives of helpless animals at risk and expose the public and other animals to serious diseases.”
“This charge underscores our unwavering commitment to protecting vulnerable wildlife and holding traffickers accountable for their crimes,” said Shawn Gibson, special agent in charge of HSI San Diego. “We are grateful to our dedicated law enforcement partners whose collaboration was instrumental in bringing this individual to justice.”
According to the U.S. Fish and Wildlife Service, Amazon parrots are native to Mexico, the West Indies, and northern South America, while Burrowing Parakeets are local to Chile and Argentina. All 30-some species of Amazon parrots, as well as the Burrowing Parakeets, are listed on either Appendix I or Appendix II of the Convention on International Trade in Endangered Species of Wild Flora and Fauna (“CITES”).
The successful smuggling of undeclared Amazon parrots and Burrowing Parakeets into the U.S. means no quarantine period or process. This would be dangerous to the United States as birds can carry and spread Avian influenza (bird flu), psittacosis, and histoplasmosis. Bird flu is highly contagious and can cause flu like symptoms, respiratory illness, pneumonia and death in humans and other birds including birds in United States poultry farms. Quarantining animals entering the United States is intended to safeguard against this potential disease transmission.
This case is being prosecuted by Assistant U.S. Attorney Parker Gardner-Erickson.
DEFENDANT Case Number 25mj2712-VET
Ricardo Alonzo Age: 26 San Diego, CA
SUMMARY OF CHARGES
Importation Contrary to Law – Title 18, U.S.C., Section 545
Maximum penalty: Twenty years in prison and $250,000 fine
INVESTIGATING AGENCIES
U.S. Fish and Wildlife Service
Homeland Security Investigations
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
U.S. Attorney’s Office Filed 153 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 153 border-related cases this week, including charges of assault on a federal officer, bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On May 11, Mario Santiago-Velasquez, a Mexican national, was arrested and charged with Deported Alien Found in The United States. According to a complaint, Santiago-Velasquez was previously convicted of five immigration crimes and Malicious Destruction of Property.
- On May 12, Juan Jose Perez-Garcia, a Mexican national who was previously convicted of five immigration-related offenses including felony reentry-after-deportation in 2023, was sentenced in federal court to seven months in custody for again entering the U.S. illegally.
- On May 13, Juan Nazario Lizarraga Peralta, a U.S. citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Lizarraga was attempting to enter the U.S. at the San Ysidro Port of Entry when he was intercepted by Customs and Border Patrol agents with seven pounds of fentanyl and 11 pounds of cocaine strapped to his body.
- On May 13, Oscar Echevarria-Luque, a Mexican national, was arrested and charged with illegal importation of cocaine. According to a complaint, Luque applied for entry through the Calexico, California East Port of Entry in a Kenworth truck towing a car hauler. Upon inspection of the trailer, Customs and Border Protection officers found 92.18kg (203.22 pounds) of cocaine concealed in the frame of the trailer.
- On May 14, Ernesto Alejandro Rodriguez Gallegos, a Mexican national, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Rodriguez attempted to cross the border at the San Ysidro Port of Entry with 135 pounds of cocaine hidden in his vehicle.
Also recently, a number of defendants with criminal records were convicted by a jury or sentenced for border-related crimes such as illegally re-entering the U.S. after previous deportation. Here are a few of those cases:
- On May 16, Serafin Abelino-Medel, a Mexican national who was previously convicted of felony inflicting corporal injury on a spouse, assault with force likely to cause great bodily injury, assault with a deadly weapon, and threatening crime with intent to terrorize, was sentenced in federal court to 15 months in custody for again entering the United States illegally.
- On May 16, Isaac Lopez-Rodriguez, a Mexican national who was previously convicted of Attempt to Commit Aggravated Assault in 2015, was sentenced in federal court to two years in custody for again entering the U.S illegally.
Pursuant to the Department’s Operation Take Back America priorities, federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Owner of San Diego Surrogacy Consulting Businesses Sentenced to Prison for Defrauding ClientsRead the Press Release
SAN DIEGO –Lillian Arielle Markowitz, former owner of three San Diego-based surrogacy consulting businesses, was sentenced in federal court today to 24 months in prison for stealing hundreds of thousands of dollars from her clients.
At today’s hearing, U.S. District Judge Todd W. Robinson also ordered Markowitz to pay $389,142.00 in restitution to her former clients.
According to court documents, Markowitz owned three businesses — My Donor Cycle, Surrogacy Beyond Borders, and Expecting Surrogacy — through which she marketed herself as a surrogacy consultant to those seeking to realize their dreams of becoming parents. Beginning around 2018, when Markowitz and her businesses began to experience financial distress, she devised a scheme to steal money from her surrogacy clients by, among other things, submitting fraudulent requests to withdraw client funds from the escrow company where the funds were maintained. Markowitz submitted four fraudulent escrow disbursement requests, including one in which she forged a client’s signature in order to steal his escrow funds.
In her plea agreement, Markowitz admitted that from 2019 through 2021, she defrauded nine additional clients by falsely promising that their funds would be deposited into an escrow account and that their funds would be accessed only to pay for expenses related to their respective surrogacy journey. Instead, Markowitz deposited these clients’ funds into her business checking account, then immediately used them to cover general business expenses, expenses related to other clients’ surrogacy journeys, expenses related to her unrelated yoga and float business, and to pay for her personal expenses.
“Lillian Markowitz turned her surrogacy businesses into a Ponzi scheme,” said U.S. Attorney Adam Gordon. “She did not simply steal funds. She stole the dream of parenthood from her victims. She exploited hope and heartbreak for profit. Those who prey on the desperate will be held accountable.”
“Today’s sentencing of Lilian Markowitz marks the conclusion of a cruel and deceitful scheme that deeply exploited the victims’ hopeful dreams of becoming parents,” Acting Special Agent in Charge Houtan Moshrefi. “After years of deception, Ms. Markowitz will now be held accountable for her egregious breach of trust and unethical conduct.”
This case was prosecuted by Special Assistant United States Attorney Jeffrey D. Hill and Assistant United States Attorney Mark W. Pletcher.
DEFENDANT Case Number 24-CR-0904-TWR
Lillian Arielle Markowitz (aka Lillian Frost) Age: 40 Portland, OR
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 134
Maximum penalty: Twenty years in prison and $250,000 fine
INVESTIGATING AGENCY
Federal Bureau of Investigation
Contact
Kelly Thornton, Director of Media Relations
CEO of Financial Firm Sentenced to Prison for Running a Multimillion Dollar FraudRead the Press Release
SAN DIEGO – Carlos Manuel da Silva Santos, the founder and chief executive officer of San Diego-based Ethos Asset Management, Inc., which offered financing to domestic and international businesses, was sentenced to 87 months in prison for tricking borrowers into paying him more than $17 million in up-front loan fees for nothing in return – conduct that U.S. District Judge Robert S. Huie described as “reprehensible.”
Santos pleaded guilty in January 2025 to wire fraud conspiracy and aggravated identity theft in connection with his advance-fee loan scam through his company, Ethos.
Santos, a Portuguese national, has been in custody since his arrest on November 13, 2023, in Newark, New Jersey, after arriving in the United States from abroad.
According to his plea agreement, Santos admitted he and co-conspirators held Ethos out to the public as a “full-service project financing” company that offered loans to prospective borrowers in exchange for an upfront fee as collateral for Ethos to use. However, on many occasions when a borrower gave Ethos the upfront fee as collateral, Ethos’ funding never materialized.
To induce prospective borrowers to send Ethos an upfront fee as collateral and enter into loan agreements, Santos and his co-conspirators lied about Ethos’ history of funding projects, the source of Ethos’ money, the amount of capital available to disburse loans, and how Ethos used the collateral upfront fees. For instance, Santos admitted that he used money from the upfront collateral fees to release collateral deposited by other borrowers and to disburse loans to other borrowers.
Santos also admitted that he and others altered otherwise legitimate financial account statements to inflate the amount of money Ethos appeared to have at its disposal to finance projects for the purpose of luring prospective borrowers to provide collateral and financial institutions to lend money. For example, in August 2021, Santos successfully induced a borrower to wire money as a collateral upfront fee by sending a bank statement that falsely represented Ethos having $100,304,447.46 when, in fact, it did not.
In February and May 2023, Santos again induced borrowers to provide collateral upfront fees by emailing a copy of Ethos’ annual financial statements reflecting falsely that Ethos had over $2.2 billion in total assets and that an accounting firm had audited the statements. Indeed, Santos admitted that he knowingly forged the signature of an employee at a bookkeeping firm on Ethos’s 2022 annual financial statement to falsely indicate that the firm had audited the statement. In each noted example, Ethos fraudulently obtained upfront fees and failed to disburse loan payments as promised.
Santos further admitted Ethos’ project financing scheme was international in nature, with a presence in the United States, Brazil, Turkey, and elsewhere. Santos admitted his scheme resulted in $17,125,000 in losses to certain U.S.-based victims. The plea agreement also explains that the parties will request a restitution hearing allowing the United States to offer evidence that Santos owes significantly more money to various other victims.
According to the plea agreement, Santos also forged the signature of an employee at an accounting firm to make it appear that the firm had audited Ethos’ annual financial reports.
“Fraud like this is a calculated abuse of trust,” said U.S. Attorney Adam Gordon. “It strips people of their money under false promises. The impact is real, measurable, and lasting—and it calls for real consequences.”
“Businesses, large or small are the backbone of our economy yet one wrong or ill advised financial move can result in significant losses or even complete ruin,” said Shawn Gibson, special agent in charge for HSI San Diego. “HSI and our partner agencies are committed to preventing greedy scammers from victimizing and profiting from legitimate businesses. Our country relies on these businesses and law enforcement will continue to protect them from criminals.”
A restitution hearing will be held at a later date.
This case is being prosecuted by Assistant U.S. Attorneys E. Christopher Beeler and Carl F. Brooker, IV.
If you believe you are a victim of Carlos Santos and his company Ethos Asset Management, Inc., contact Homeland Security Investigations at [email protected].
DEFENDANT
Carlos Manuel da Silva Santos Age: 30 Portugal
SUMMARY OF CHARGES
Wire Fraud Conspiracy – Title 18, U.S.C., Section 1349
Maximum penalty: Thirty years in prison and $250,000 fine
Aggravated Identity Theft – Title 18, U.S.C. Section 1028A
Maximum penalty: Mandatory two years in prison consecutive to the term for the underlying felony
INVESTIGATING AGENCY
Homeland Security Investigations
Ecuadorian Drug Trafficker Pleads GuiltyRead the Press Release
SAN DIEGO – Wilder Emilio Sanchez Farfan, aka Gato, an Ecuadorian national and high-level drug trafficker, pleaded guilty in federal court today to international drug trafficking charges following his extradition to San Diego January 26, 2024.
Farfan had previously been designated by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) pursuant to Executive Order (E.O.) 14059 for materially contributing to the illicit activities of major Mexican cartels to traffic cocaine into the United States.
Farfan pleaded guilty to a second superseding indictment returned by a federal grand jury on October 30, 2019. In his plea agreement, Farfan admitted that he led an extensive drug trafficking organization that distributed over 450 kilograms of cocaine in Colombia, Ecuador, Mexico and elsewhere, and that the cocaine was ultimately imported into and distributed within the United States. He also admitted that the organization bribed government officials and used firearms to further their drug trafficking activities.
As part of his plea, Farfan also agreed to forfeit over $899,000 of U.S. currency.
Farfan is scheduled to be sentenced before U.S. District Judge Linda Lopez on August 11, 2025, at 10 a.m.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
This case is being prosecuted by Assistant U.S. Attorneys Kyle B. Martin and Ashley E. Goff.
The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Judicial Attaché’s office at the U.S. Embassy in Bogota provided critical assistance in securing the arrest and extradition from Colombia of Sanchez Farfan.
DEFENDANTS Case Number 19CR1610-01-LL
Wilder Emilio Sanchez Farfan, aka Gato Age: 44 Ecuador
SUMMARY OF CHARGES
International Conspiracy to Distribute Cocaine – Title 21, U.S.C., Sections 959, 960, and 963
Maximum penalty: Mandatory minimum 10 years and up to life in prison
INVESTIGATING AGENCIES
Drug Enforcement Administration
Federal Bureau of Investigation
California Man Sentenced for Conspiring to Smuggle Pesticides & Veterinary Drugs into the United StatesRead the Press Release
Ruben Montes, of Calexico, California, was sentenced today in federal court to 16 months in prison and ordered to pay $12,710 in forfeiture for conspiring to smuggle and distribute more than $3 million worth of Mexican pesticides and veterinary drugs that are not approved for use in the United States.
“A secure border is vital to ensuring the health and safety of Americans,” said Acting Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “The Justice Department is committed to prosecuting those who violate our environmental and customs laws and jeopardize the health and safety of our citizens.”
“Bringing in and selling pesticides and veterinary drugs illegally puts both people and the environment at risk,” said U.S. Attorney Adam Gordon for the Southern District of California. “These unregulated products can be harmful to animals, insects, and humans. Our office is committed to holding accountable anyone who chooses profit over public safety.”
According to filings and evidence presented in court, Montes coordinated the smuggling of pesticides and veterinary drugs from Mexico into the United States since 2020. The primary pesticides involved were Taktic and Bovitraz, which are not registered with the Environmental Protection Agency (EPA) for use in the United States. The smuggled veterinary drugs included Tylocet, Terramicina, Tetragent Ares and Catarrol, which are not approved by the Food and Drug Administration (FDA) for use in the United States.
Montes requested that his co-conspirators bring pesticides and veterinary drugs — unavailable for purchase in the United States — from Mexico into the United States. Montes and his co-conspirators brought them into the United States without declaring them at the border. He and his co-conspirators then hid the pesticides and veterinary drugs in storage units in Calexico and retrieved them for distribution throughout the United States. Specifically, Montes and his co-defendant Gutierrez, who remains at large, supplied most of the pesticides and veterinary drugs to individuals charged in another case, United States v. Toledo, et. al., (case number 22-cr-1965-JAH, in U.S. District Court for the Southern District of California). Montes was also involved in shipping about 150 packages of unapproved products to another co-conspirator in Texas.
According to the EPA, the active ingredient in the pesticides Taktic and Bovitraz is amitraz, which is toxic to bees if released into hives, and then ultimately to humans when it ends up in honey, honeycomb, and beeswax. Misuse of amitraz-containing products in beehives can result in exposures that could cause neurological effects and possibly reproductive effects in humans from the consumption of contaminated honey. Signs of neurotoxicity from exposure to amitraz have been documented in multiple animal species and include central nervous system depression, decrease in pulse rate, and hypothermia.
Assistant Section Chief Stephen Da Ponte of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Elizabet Brown for the Southern District of California prosecuted the case.
Calexico Man Sentenced for Conspiring to Smuggle Unapproved Pesticides and Veterinary Drugs into the United StatesRead the Press Release
SAN DIEGO — Ruben Montes, of Calexico, California, was sentenced today in federal court to 16 months in prison and ordered to pay $12,710 in forfeiture for conspiring to smuggle and distribute more than $3 million worth of Mexican pesticides and veterinary drugs that are not approved for use in the United States.
“Bringing in and selling pesticides and veterinary drugs illegally puts both people and the environment at risk,” said U.S. Attorney Adam Gordon for the Southern District of California. “These unregulated products can be harmful to animals, insects, and humans. Our office is committed to holding accountable anyone who chooses profit over public safety.”
“A secure border is vital to ensuring the health and safety of Americans,” said Acting Assistant Attorney General Adam Gustafson of the Justice Department’s Environment and Natural Resources Division (ENRD). “The Justice Department is committed to prosecuting those who violate our environmental and customs laws and jeopardize the health and safety of our citizens.”
According to filings and evidence presented in court, Montes coordinated the smuggling of pesticides and veterinary drugs from Mexico into the United States since 2020. The primary pesticides involved were Taktic and Bovitraz, which are not registered with the Environmental Protection Agency (EPA) for use in the United States. The smuggled veterinary drugs included Tylocet, Terramicina, Tetragent Ares and Catarrol, which are not approved by the Food and Drug Administration (FDA) for use in the United States.
Montes requested that his co-conspirators bring pesticides and veterinary drugs — unavailable for purchase in the United States — from Mexico into the United States. Montes and his co-conspirators brought them into the United States without declaring them at the border. He and his co-conspirators then hid the pesticides and veterinary drugs in storage units in Calexico and retrieved them for distribution throughout the United States. Specifically, Montes and his co-defendant Gutierrez, who remains at large, supplied most of the pesticides and veterinary drugs to individuals charged in another case, United States v. Toledo, et. al., (case number 22-cr-1965-JAH, in U.S. District Court for the Southern District of California). Montes was also involved in shipping about 150 packages of unapproved products to another co-conspirator in Texas.
According to the EPA, the active ingredient in the pesticides Taktic and Bovitraz is amitraz, which is toxic to bees if released into hives, and then ultimately to humans when it ends up in honey, honeycomb, and beeswax. Misuse of amitraz-containing products in beehives can result in exposures that could cause neurological effects and possibly reproductive effects in humans from the consumption of contaminated honey. Signs of neurotoxicity from exposure to amitraz have been documented in multiple animal species and include central nervous system depression, decrease in pulse rate, and hypothermia.
Assistant U.S. Attorney Elizabet Brown for the Southern District of California and Assistant Section Chief Stephen Da Ponte of ENRD’s Environmental Crimes Section prosecuted the case.
DEFENDANT Case Number 23CR2377
Ruben Montes Age: 60 Calexico, CA
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C. Section 371
Maximum Penalty: Five years in prison and $250,000 fine
INVESTIGATING AGENCIES
Homeland Security Investigations
U.S. Environmental Protection Agency, Criminal Investigations Division
U.S. Food and Drug Administration, Office of Criminal Investigations
California Department of Toxic Substances Control
Sinaloa Cartel Leaders Charged with Narco-Terrorism, Material Support of Terrorism and Drug TraffickingRead the Press Release
SAN DIEGO – An indictment unsealed today is the first in the nation to charge alleged leaders of the Sinaloa Cartel with narco-terrorism and material support of terrorism in connection with trafficking massive amounts of fentanyl, cocaine, methamphetamine and heroin into the United States.
Pedro Inzunza Noriega and his son, Pedro Inzunza Coronel, are charged with narco-terrorism, drug trafficking and money laundering as key leaders of the Beltran Leyva Organization (BLO), a powerful and violent faction of the Sinaloa Cartel that is believed to be the world’s largest known fentanyl production network. Five other BLO leaders are charged with drug trafficking and money laundering. The indictment is a direct result of President Trump’s Executive Order 14157 which designated the Sinaloa Cartel as a Foreign Terrorist Organization and the Secretary of State’s subsequent designation of the same on February 20, 2025.
“The Sinaloa Cartel is a complex, dangerous terrorist organization and dismantling them demands a novel, powerful legal response,” said Attorney General Pamela Bondi. “Their days of brutalizing the American people without consequence are over — we will seek life in prison for these terrorists.”
“Operation Take Back America initiatives reflect the reality that narco-terrorists operate as a cancer within a state,” said U.S. Attorney Adam Gordon. “They metastasize violence, corruption and fear. If left unchecked, their growth would lead to the death of law and order. This indictment is what justice looks like when the full measure of the Department of Justice along with its law enforcement partners is brought to bear against the Sinaloa Cartel.”
“These charges highlight the unwavering efforts of transnational criminal organizations like the Sinaloa Cartel to flood our communities with deadly drugs,” said Shawn Gibson, special agent in charge for Homeland Security Investigations San Diego. “HSI and our law enforcement partners will not allow cartel-driven drug trafficking to threaten the safety and stability of our neighborhoods. We are all lasered focused on a unified effort to dismantling these networks and their factions in bringing those responsible to justice.”
“BLO, under the leadership of Inzunza Noriega, is allegedly responsible for some of the largest-ever drug seizures of fentanyl and cocaine destined for the United States,” said FBI San Diego Acting Special Agent in Charge Houtan Moshrefi. “Their drugs not only destroy lives and communities, but also threaten our national security. The law enforcement efforts against the Noriegas reaffirms our commitment to dismantling and disrupting this very dangerous narco-terrorist group and combating narco-trafficking.”
According to court documents, since its inception the Beltran Leyva faction has been considered one of the most violent drug trafficking organizations to operate in Mexico, engaging in shootouts, murders, kidnappings, torture and violent collection of drug debts to sustain its operations. The Beltran Leyva faction controls numerous territories and plazas throughout Mexico – including Tijuana – and operates with violent impunity, trafficking in deadly drugs, threatening communities, and targeting key officials, all while making millions of dollars from their criminal activities.
Pedro Inzunza Noriega works closely with his son, Pedro Inzunza Coronel, to produce and aggressively traffic fentanyl to the United States, the government has alleged. Court documents indicate that together the father and son lead one of the largest and most sophisticated fentanyl production networks in the world. Over the past several years, they have trafficked tens of thousands of kilograms of fentanyl into the United States. On December 3, 2024, Mexican law enforcement raided multiple locations in Sinaloa that are controlled and managed by the father and son and seized 1,500 kilograms (more than 1.65 tons) of fentanyl – the largest seizure of fentanyl in the world.
These indictments follow a notable tradition in the Southern District of California for targeting leadership and operations of powerful Mexican cartels – from the dismantling of the Arellano Felix Cartel to major strikes against today’s most dangerous, powerful and violent cartels, including the Sinaloa Cartel, Jalisco New Generation Cartel and now the Beltran Leyva Organization. It is the first indictment from the newly formed Narco-Terrorism Unit which was established upon the swearing in of U.S. Attorney Gordon on April 11, 2025.
The indictment of Pedro Inzunza Noriega reflects the Southern District of California’s pursuit of the Sinaloa Cartel. Federal drug trafficking indictments are pending against all alleged leaders of its Beltran Leyva faction, including:
- Fausto Isidro Meza Flores aka “Chapo Isidro,” case number: 19-CR-1272 in the Southern District of California and 12-116BAH in the District of Columbia
- Oscar Manuel Gastelum Iribe aka “El Musico,” case number 19-CR-3736 in the Southern District of California; 09-CR-00672 in the Northern District of Illinois; 15-CR-00195 in the District of Columbia, and
- Pedro Inzunza Noriega aka “Sagitario,” case number 25cr1505.
The Southern District of California also has indictments pending against other leaders of the Sinaloa Cartel, including:
- Ivan Archivaldo Guzman Salazar aka “El Chapito,” case number 14-cr-00658 in the Southern District of California and 09-CR-383 in the Northern District of Illinois
- Ismael Zambada Sicairos aka “Mayito Flaco,” case number: 14-cr-00658 in the Southern District of California; and
- Jose Gil Caro Quintero aka “El Chino,” case number 22-cr-00036 in the District of Columbia
This case is being prosecuted by Assistant U.S. Attorneys Joshua Mellor and Matthew Sutton.
DEFENDANTS Case Number 25cr1505
Pedro Inzunza Noriega Age: 62 Los Mochis, Sinaloa, Mexico
aka “Sagitario,” aka “120,”
aka “El De La Silla”Pedro Inzunza Coronel Age: 33 Los Mochis, Sinaloa, Mexico
Aka “Pichon,” Aka “Pajaro”
Aka “Bird”David Alejandro Heredia Velazquez Age: 50 Guadalajara, Jalisco, Mexico and
Aka “Tano,” Aka “Mr. Jordan” Culiacan, Sinaloa, Mexico
Oscar Rene Gonzalez Menendez Age: 45 Guatemala City, Guatemala Aka “Rubio”Elias Alberto Quiros Benavides Age: 53 San Jose, Costa Rica
Daniel Eduardo Bojorquez Age: 47 Nogales, Sonora, Mexico
Aka “Chopper”
Javier Alonso Vazquez Sanchez Age: 31 Los Mochis, Sinaloa, Mexico
Aka “Tito”, Aka “Drilo”
SUMMARY OF CHARGES
Title 21, U.S.C., Secs. 960a and 841 – Narco-Terrorism
Maximum penalty: Life in prison, mandatory minimum 20 years in prison; $20 million fine
Title 18, U.S.C. Sec. 2339B – Providing Material Support to Terrorism
Maximum penalty: Twenty years in prison and $250,000 fine
Title 21, U.S.C., Sec. 848(a) -Continuing Criminal Enterprise
Maximum penalty: Life in prison, mandatory minimum 20 years; $10 million fine
Title 21, U.S.C., Secs. 952, 959, 960, and 963 - International Conspiracy to Distribute Controlled Substances
Maximum penalty: Life in prison, mandatory minimum 10 years; $10 million fine
Title 21, U.S.C., Secs. 841(a)(1) and 846 - Conspiracy to Distribute Controlled Substances
Maximum penalty: Life in prison, mandatory minimum 10 years in prison; $10 million fine
Title 21, U.S.C., Secs. 952, 960 and 963 – Conspiracy to Import Controlled Substances
Maximum penalty: Life in prison, mandatory minimum 10 years; $10 million fine
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison and a fine of the greater of $500,000 or twice the value of the monetary instrument or funds involved
INVESTIGATING AGENCIES
Homeland Security Investigations
Federal Bureau of Investigation
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Indictment
Unsealed 25CR1505CAB Indictment.pdfU.S. Attorney’s Office Filed 176 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 176 border-related cases this week, including charges of assault on a federal officer, bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On May 8, Ismael Castro-Gonzalez, a Mexican national, was arrested and charged with Assault on a Federal Officer and Attempted Entry of a Removed Alien. According to a complaint, two Border Patrol agents were attacked by Castro and others when they attempted to rescue Castro, who was hanging from barbed wire on the border wall with a broken ladder nearby. The agents were pelted with rocks by other immigrants, including one who was sitting atop the wall. One agent grabbed Castro’s right hand and forced him to release the wire. Once he broke Castro’s grip, the agent was able to pull Castro from the wire and take him to the ground, where Castro continued to struggle and attempted to tackle the agent. As they fell to the ground, Castro started reaching for the agent’s gun and collapsible steel baton. The two agents were able to subdue Castro and arrest him. Castro was previously deported to Mexico on June 29, 2022, through the San Ysidro Port of Entry.
- On May 6, Rosa Cervantez, a U.S. citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Cervantez attempted to cross the border in the SENTRI lane at the Calexico West Port of Entry but a Customs and Border Protection officer discovered 36 plastic-wrapped packages hidden in a spare tire well of her car containing 85 pounds of fentanyl and more than 2 pounds of cocaine.
- On May 7, Salvador Hernandez, a U.S. citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Hernandez attempted to smuggle three pounds of methamphetamine through the pedestrian lanes of the Otay Mesa Port of Entry. Customs and Border Protection officers found three packages concealed in Hernandez’s waistline secured with Saran Wrap.
- On May 7, Jose Tomas Lopez-Navarro of Honduras was arrested and charged with Attempted Entry after Deportation. According to a complaint, Lopez-Navarro submitted a counterfeit passport to a Customs and Border Patrol officer when asking to be admitted to the U.S. at the San Ysidro Pedestrian East Port of Entry. Lopez-Navarro had been previously removed from the U.S. to Honduras on February 4, 2025.
Also recently, a number of defendants with criminal records were convicted by a jury or sentenced for border-related crimes such as illegally re-entering the U.S. after previous deportation. Here are a few of those cases:
- On April 30, Abner Leon-Mote, a Mexican national who was previously convicted of felony Assault with a Deadly Weapon in April 2018, was found guilty by a jury of Attempted Reentry of Removed Alien for again entering the U.S. illegally. Sentencing is scheduled for July 29, 2025 and Leon-Mote faces a maximum sentence of 20 years in prison.
- On May 5, Omar Laveaga-Flores, a Mexican national who was previously convicted of an illegal entry offense in Arizona in 2022, was sentenced in federal court to 60 days in custody for again entering the U.S illegally.
- On May 8, Juan Melgoza-Soto and Santiago Alfredo Gonzalez Hara, previously removed Mexican nationals, were sentenced in federal court to 73 days in custody for bringing an undocumented alien into the United States from Mexico.
- On May 9, Martin Josue Gutierrez, a U.S. citizen, was sentenced to six months in custody for Transportation of Certain Aliens. The defendant had seven undocumented individuals in a truck, including several under a tarp in the bed of the truck, and failed to yield during an attempted vehicle stop by law enforcement.
Pursuant to the Department’s Operation Take Back America priorities, federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Government Alleges San Diego County Brothers Obtained More Than $8 Million in Pandemic Loans by Lying on ApplicationsRead the Press Release
SAN DIEGO - The United States has filed a civil complaint alleging that two brothers fraudulently obtained more than $8 million in pandemic-related loans by lying on applications and claiming funds for three businesses that don’t exist.
The loans were issued through the Paycheck Protection Program (PPP), which was part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted in March 2020 designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The PPP offered relief by authorizing hundreds of billions of dollars in potentially-forgivable loans to small businesses for job retention and certain other expenses.
The loan applications required the borrower to certify the type of business, the number of employees the business supported, and that the business was in operation as of February 15, 2020. Borrowers were eligible to seek forgiveness of the loans if they spent the loan proceeds on employee payroll and other eligible expenses.
The civil complaint alleges that between March 25, 2021, and April 28, 2021, brothers Duraid A. Zaia and Kusay Karana obtained four PPP loans for four businesses, two purportedly owned by Zaia and two by Karana. The complaint alleges that the businesses were either non-existent or were grossly exaggerated in size. The complaint alleges that Zaia and Karana obtained approximately $8.3 million dollars in PPP loans through those fraudulent applications.
In one example, the complaint alleges that Zaia applied for a PPP loan for a business called “Ramona Egg Ranch.” The complaint describes how Zaia certified in his application that this business employed 75 people and had annual payroll costs exceeding $9.5 million. But, according to the complaint, federal income tax returns that Zaia submitted in support of that loan reported annual payroll costs of just $62,848.
In another example the complaint alleges that soon after Zaia submitted the Ramona Egg Ranch application, he submitted a second application for a business called “The Duriad A. Zaia Sole Proprietorship.” The complaint describes how Zaia certified that the business employed 137 people and that it was established in 2016. But, according to the complaint, the business could not have operated at all in 2020 because it did not have an Employer Identification Number (EIN) until March 30, 2021. As the complaint explains, without an EIN a business could not legally pay employees because it would not have a tax identification number to report employee wages, payroll taxes, or its own income taxes.
The complaint also alleges that Zaia and Karana bolstered their loans by fabricating lists of employees who worked at their businesses. The complaint asserts that the lists of employees are fraudulent because they show a large percentage of employees simultaneously working at two or more different businesses on a full-time basis. In one example, the complaint describes how Zaia submitted a list of 108 employees that supposedly worked at one of Zaia’s businesses, and Karana submitted a list of 110 employees that supposedly worked at one of Karana’s businesses. But 41 people with the same name and the same full-time equivalent salary appeared on both lists.
The complaint alleges that after Zaia and Karana were denied forgiveness of their loans and then defaulted on all their loans, the United States, through the Small Business Administration (SBA), repaid the lenders that issued the loans. The complaint asserts that taken together, the principal, interest, and processing fees for the brothers’ loans resulted in a loss of over $8.6 million to the United States.
The United States’ complaint asserts that Zaia and Karana violated the False Claims Act (FCA). The United States filed its complaint after it intervened in a lawsuit filed by a private citizen against Zaia and the Ramona Egg Ranch. Under its so-called qui tam provisions, the FCA allows private citizens with knowledge of fraud against the federal government to sue on behalf of the government and potentially receive a portion of recovered funds.
“COVID-relief programs were designed to help people and businesses under extreme financial stress during the pandemic,” said U.S. Attorney Adam Gordon. “This complaint seeks to hold accountable those who took advantage of those programs by fraud. My office will continue to pursue those who knowingly cheat taxpayers by abusing the Paycheck Protection Program and other pandemic-related programs.”
“Intentional misrepresentation to gain access to SBA program funds intended for the nation’s small businesses will not be tolerated,” said SBA OIG’s Western Region Assistant Special Agent in Charge Jonathan Huang. “Our Office will remain relentless in the pursuit of wrongdoers who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office, and our law enforcement partners for their dedication and commitment to seeing justice served.”
This case is being handled by Assistant U.S. Attorney Stephen H. Wong of the Civil Division of the U.S. Attorney’s Office for the Southern District of California. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.
San Diego Fentanyl Supplier Sentenced in the District for Role in Nationwide Drug Trafficking ConspiracyRead the Press Release
WASHINGTON – Edgar Balderas, 27, of San Diego, California, was sentenced today in U.S. District Court to 148 months in prison for participating in a massive fentanyl trafficking conspiracy that distributed hundreds of thousands of fentanyl-laced counterfeit oxycodone pills from Southern California to destinations throughout the United States, including the District. Balderas was one of more than two dozen co-defendants arrested over the course of 2023 in D.C., Virginia, Maryland, San Diego, and Los Angeles and charged in the conspiracy.
The sentencing was announced by U.S. Attorney Edward R. Martin Jr., DEA Special Agent in Charge Ibrar A. Mian of the Drug Enforcement Administration Washington Division, and Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service Washington Division.
Balderas, aka “Nano,” pleaded guilty on Dec. 19, 2024, to conspiracy to distribute 400 grams or more of fentanyl. In addition to the 148-month prison term, U.S. District Court Judge Colleen Kollar-Kotelly ordered Balderas to serve five years of supervised release.
The impetus for this investigation was the overdose death of Diamond Lynch, a young mother in Southeast D.C. In addition to investigating and prosecuting the death-resulting case, law enforcement followed the evidence and uncovered a vast network of traffickers who transported fentanyl from Mexico to Los Angeles to the District of Columbia. Since then, investigators have seized more than 450,000 fentanyl pills, 1.5 kilograms of fentanyl powder, and 30 firearms.
According to court documents, Balderas conspired with a Los Angeles-based fentanyl trafficker to supply him with fentanyl-laced counterfeit oxycodone pills, which the trafficker would, in turn, supply to his D.C.-based customers. He began supplying the trafficker with fentanyl-laced counterfeit oxycodone pills in Fall 2022 and continued until the L.A.-based trafficker’s arrest in late-February 2023.
After the Los Angeles-based trafficker’s arrest in late-February 2023, Balderas attempted to begin dealing fentanyl directly to D.C.-based fentanyl distributors. For example, Balderas began communicating via Instagram with a D.C.-based co-defendant in this case the month after the Los Angeles-based trafficker’s arrest. The purpose of these communications was to arrange for the direct sale of fentanyl pills to the D.C.-based co-conspirator, along with other D.C.-based clients of the Los Angeles-based fentanyl trafficker.
DEFENDANTAGELOCATIONCHARGES/SENTENCEHector David Valdez,
aka “Curl”
27
Santa Fe Springs, CaliforniaConspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl;
Conspiracy to commit international money laundering.
Craig Eastman
21
Washington, D.C.Sentenced Feb. 6, 2025, to 165 months for conspiracy to distribute more than 400 grams of fentanyl.Charles Jeffrey Taylor21Washington, D.C.Pleaded guilty Feb. 28, 2025, to conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl.Raymond Nava, Jr.20Bell Gardens,
California
Sentenced Sept. 17, 2024, to 14 years for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Ulises Aldaz28Bell Gardens,
California
Sentenced June 28, 2024, to 95 months in prison for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Max Alexander Carias Torres27Bell Gardens,
California
Conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl;
Conspiracy to commit international money laundering
Teron Deandre McNeil, aka “Wild Boy”34Washington, D.C.Conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl;
Conspiracy to commit wire fraud
Marvin Anthony Bussie,
aka “Money Marr”
22Washington, D.C.Sentenced June 28, 2024, to 120 months in prison for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Marcus Orlando Brown29Washington, D.C.Sentenced Oct. 3, 2024, to 108 months in prison for conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl.Columbian Thomas, aka "Cruddy Murda”27Washington, D.C.Sentenced Oct. 22, 2024, to 160 months in prison for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Wayne Rodell Carr-Maiden30Washington, D.C.Sentenced April 29, 2024, to 45 months in prison for conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl.Andre Malik Edmond,
aka “Draco”
23Temple Hills, MarylandSentenced July 22, 2024, to 130 months in prison for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Treyveon James Johnson,
aka “Treyski”
20Alexandria, VirginiaSentenced Sept. 5, 2024, to 108 months in prison for conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl.Karon Olufemi Blalock,
aka “Fat Bags”
30Alexandria, VirginiaConspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl;
Conspiracy to commit wire fraud;
Conspiracy to commit money laundering
Ronte Ricardo Greene,
aka “Cardiddy”
29Washington, D.C.Pleaded guilty Feb. 27, 2025, to conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl.Melvin Edward Allen, Jr., aka “21”39Washington, D.C.Pleaded guilty on Dec. 18, 2024, to conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl.Darius Quincy Hodges,
aka “Brick”
34Glen Allen, VirginiaConspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Lamin Sesay,
aka “Rock Star”
28Alexandria, VirginiaPleaded guilty Feb. 7, 2025, to conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl.Paul Alejandro Felix26Glendale,
California
Sentenced Nov. 12, 2024, to 164 months in prison for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Omar Arana,
aka “Frogs”
27Cudahy,
California
Sentenced May 2, 2025, to 93 months for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Edgar Balderas, Jr., aka “Nano”27San Diego,
California
Sentenced May 8, 2025, to 148 months for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Raul Pacheco Ramirez30Long Beach,
California
Sentenced Nov. 26, 2024, to 95 months for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Giovani Alejandro Briones30Victorville, CaliforniaSentenced Feb. 20, 2025, to 90 months for conspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl.Alfredo Rodriguez Gonzalez26Rosarito, MexicoConspiracy to distribute and possess with intent to distribute 400 grams or more of fentanyl;
Conspiracy to commit international money laundering.
The prosecutions followed a joint investigation by the DEA Washington Division and the U.S. Postal Inspection Service Washington Division, in partnership with the Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with additional support from the DEA Los Angeles, San Diego, and Riverside Field Offices, the Federal Bureau of Investigation’s Washington Field Office, and the Charles County, Maryland Sheriff’s Office. Valuable assistance was provided by the U.S. Attorney’s Offices in the Central and Southern Districts of California, the Eastern District of Virginia, and the District of Maryland.
The case is being prosecuted by Assistant U.S. Attorneys Matthew W. Kinskey, Solomon S. Eppel, and Iris Y. McCranie of the Violence Reduction and Trafficking Offenses Section.
23cr73
Justice Department Announces Results of Operation Restore Justice: 205 Child Sex Abuse Offenders Arrested in FBI-led Nationwide Crackdown, Including Four in the Southern District of CaliforniaRead the Press Release
SAN DIEGO – Today, the Department of Justice announced the results of Operation Restore Justice, a coordinated enforcement effort to identify, track and arrest child sex predators. The operation resulted in the rescue of 115 children and the arrests of 205 child sexual abuse offenders in the nationwide crackdown. The coordinated effort was executed over the course of five days by all 55 FBI field offices, the Child Exploitation and Obscenity Section in the Department’s Criminal Division, and United States Attorney’s Offices around the country.
“The Department of Justice will never stop fighting to protect victims — especially child victims — and we will not rest until we hunt down, arrest, and prosecute every child predator who preys on the most vulnerable among us,” said Attorney General Pamela Bondi. “I am grateful to the FBI and their state and local partners for their incredible work in Operation Restore Justice and have directed my prosecutors not to negotiate.”
“Every child deserves to grow up free from fear and exploitation, and the FBI will continue to be relentless in our pursuit of those who exploit the most vulnerable among us,” said FBI Director Kash Patel. “Operation Restore Justice proves that no predator is out of reach and no child will be forgotten. By leveraging the strength of all our field offices and our federal, state and local partners, we’re sending a clear message: there is no place to hide for those who prey on children.”
“Protecting our community means identifying, arresting and holding accountable anyone who would prey on children,” said U.S. Attorney Adam Gordon. “I’m grateful for the coordinated efforts of law enforcement in this district and across the nation, and our office will continue to prioritize these prosecutions to obtain justice for these vulnerable victims.”
“Each arrest is a powerful testament to the tireless efforts of the FBI and our dedicated law enforcement partners to protect the most vulnerable among us,” said FBI San Diego Acting Special Agent in Charge Houtan Moshrefi. “It reaffirms our unwavering commitment to pursuing justice for victims and holding predators accountable.”
In the Southern District of California, four individuals were arrested and charged with federal crimes, including:
- Seth Wheeler, who was indicted for distribution of images of minors engaged in sexually explicit conduct and possession of images of minors engaged in sexually explicit conduct. Wheeler is alleged to have distributed child pornography on two different occasions in September 2024, and in possession of child pornography in October 2024. He was previously arrested by the state and remained in state custody until he was indicted on federal charges.
- Adam Harrison Bryant, a convicted sex offender who was charged with possession of child pornography. The investigation of Bryan began when it was suspected that he had attempted to purchase child pornography from a website using cryptocurrency. A search warrant was executed on May 1, 2025, and Bryant was arrested when he was found in possession of an electronic device that contained child pornography. He was previously convicted in 2008 of travel with intent to engage in illicit sexual conduct and enticing a child and was sentenced to 40 months and 24 months, concurrent, followed by ten years of supervised release.
- Kristho Angel Valdez, whowas charged with receipt of images of minors engaged in sexually explicit conduct. Law enforcement officials were notified that two minor victims were exchanging sexually explicit content, including images and videos, through Snapchat with an unknown individual. Valdez was identified as the potential user of the Snapchat account and a search warrant for the account revealed thousands of sexually explicit images and videos of minors. On March 12, 2025, a search warrant was executed at Valdez’s residence. Valdez admitted to receiving sexually explicit videos from the minor victims.
- Christopher David Miller, who was charged with attempted receipt and possession of images of minors engaged in sexually explicit conduct. Agents began investigating Miller when they determined that IP addresses linked to his current and former residences attempted to obtain child pornography using Freenet, a peer-to-peer file sharing platform. A search warrant was executed at Miller’s residence on April 9, 2025, and Miller was found to be in possession of electronic devices containing child pornography.
Others arrested around the country are alleged to have committed various crimes including the production, distribution, and possession of child sexual abuse material, online enticement and transportation of minors, and child sex trafficking. In Minneapolis, for example, a state trooper and Army Reservist was arrested for allegedly producing child sexual abuse material while wearing his uniforms. In Norfolk, VA, an illegal alien from Mexico is accused of transporting a minor across state lines for sex. In Washington, D.C., a former Metropolitan Police Department Police Officer was arrested for allegedly trafficking minor victims.
In many cases, parental vigilance and community outreach efforts played a critical role in bringing these offenders to justice. For example, a California man was arrested about eight hours after a young victim bravely came forward and disclosed their abuse to FBI agents after an online safety presentation at a school near Albany, N.Y.
This effort follows the Department’s observance of National Child Abuse Prevention Month in April and underscores the Department’s unwavering commitment to protecting children and raising awareness about the dangers they face. While the Department, including the FBI, investigates and prosecutes these crimes every day, April serves as a powerful reminder of the importance of preventing these crimes, seeking justice for victims, and raising awareness through community education.
The Justice Department is committed to combating child sexual exploitation. These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
The Department partners with and oversees funding grants for the National Center for Missing and Exploited Children (NCMEC), which receives and shares tips about possible child sexual exploitation received through its 24/7 hotline at 1-800-THE-LOST and on missingkids.org.
The Department urges the public to remain vigilant and report suspected exploitation of a child through the FBI’s tipline at 1-800-CALL-FBI (225-5324), tips.fbi.gov, or by calling your local FBI field office.
Other online resources:
Violent Crimes Against Children
How we can help you: Parents and caregivers protecting your kids
An indictment or complaint is merely an allegation. The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three CBP Officers Indicted for Allowing Undocumented Individuals to Enter the U.S. Through Their Inspection Lanes; Two Accused of Taking BribesRead the Press Release
SAN DIEGO – U.S. Customs and Border Protection Officers Farlis Almonte, Ricardo Rodriguez and Kairy Stephania Quiñonez are charged in an indictment with allowing vehicles with undocumented individuals to pass through their lanes into the U.S. without inspection while working at the San Ysidro Port of Entry.
The indictment alleges that Almonte, Rodriguez, and Quiñonez revealed their lane assignments and hours they were scheduled to work the primary inspection booths at the San Ysidro Port of Entry so that co-conspirators would know when it was safe to transport undocumented individuals across the border with impunity - sometimes using code words to gain admittance.
According to the indictment, the defendants falsely reported in the Transportation Enforcement Communications System – a database known as “TECS” that is used by CBP officers - the number of occupants in co-conspirators’ vehicles to conceal the fact that those vehicles contained undocumented individuals.
Almonte and Rodriguez are also charged with receipt of bribes by a public official. The indictment alleges that in exchange for money, they failed to enforce the immigration laws of the United States by allowing vehicles with undocumented immigrants to enter the United States.
This case is being prosecuted by Assistant U.S. Attorneys Francisco Nagel and Bianca Calderon-Peñaloza.
DEFENDANTS Case Number 25-CR-1502
Farlis Almonte Age: 38 San Diego, California
Ricardo Rodriguez Age: 34 Tijuana, Mexico
Kairy Stephania Quiñonez Age: 31 Imperial Beach, California
SUMMARY OF CHARGE
Conspiracy to Bring in Aliens for Financial Gain – Title 18, U.S.C., Section 371 and Title 8, U.S.C. Section 1324(a)(2)(B)(ii)
Maximum Penalty: Five years in prison
Bringing in Aliens for Financial Gain, Aiding and Abetting - Title 8, U.S.C. Section 1324(a)(2)(B)(ii) and Title 18, U.S.C. Section 2
Maximum Penalty: Fifteen years in prison with a five-year mandatory minimum
Receipt of Bribes by Public Official - Title 18, U.S.C., Section 201(b)(2)(C)
Maximum Penalty: Fifteen years in prison
INVESTIGATING AGENCIES
Department of Homeland Security – Office of Inspector General
Homeland Security Investigations
Drug Enforcement Administration
U.S. Customs and Border Protection’s Office of Field Operations
United States Border Patrol
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
Jury Finds Would-Be Sex Trafficker Guilty of Attempting to Entice and Coerce a Child and an Adult into ProstitutionRead the Press Release
SAN DIEGO – Steven Terrell Lewis of El Cajon was convicted by a federal jury of attempted coercion and enticement of a 14-year-old high school student and attempted sex trafficking by force or coercion of a 22-year-old woman.
According to evidence presented at trial, on April 22, 2024, as the 14-year-old victim was walking to a friend’s house after school around 3 p.m. in El Cajon, Lewis used his vehicle to pin her on the sidewalk, exited his vehicle and snatched her cellphone from her hand to get her cellphone number. Lewis then proceeded to send sexually explicit text messages (from a phone number ending in 8155) to the victim before she was able to block his phone number. The next day, on April 23, 2024, Lewis continued texting the victim, except this time from a different phone number through TextFree, a mobile application and web service (from a phone number ending in 0014).
When Lewis identified himself as “Pimpin,” sent a sexually explicit photograph and invited the victim to “go get some money” with him, the minor victim immediately notified a coach at her high school. The El Cajon Police Department and San Diego Sheriff’s Office responded.
After Lewis’s attempt to sex traffic the minor victim failed, one week later, on April 28, 2024, he began recruiting the 22-year-old victim through MegaPersonals and sent a ride-share vehicle to take her to Roosevelt Avenue in National City, known as “the blade,” to work street-based prostitution for his financial benefit. Fortunately, on April 29, 2024, the adult victim was picked up by an undercover National City police office posing as a commercial sex buyer and was offered resources to leave prostitution. However, Lewis continued to message the adult victim (from both phone numbers ending in 8155 and 0014), threatening her to continue to engage in commercial sex for his benefit, to include:
Officers from the San Diego Human Trafficking Task Force conducted physical surveillance of Lewis, a search of his vehicles, residence and cell phones, and ultimately arrested him on May 16, 2024. The victims did not know each other. Investigators believe that other potential victims exist because they discovered a photograph of a handwritten note during a search of Lewis’s phone that appears to have been written by a concerned parent to Lewis. The note reads, “If I find out one more time that this car is following my daughter down Graves Ave we will have a problem. I suggest you f---- chill.”
At the time, Lewis was driving two vehicles that were registered to him, including a white, four-door 1996 Oldsmobile bearing California license plate number 3TIF671:
And a brown or beige colored, four-door 1986 Chevrolet bearing California licenses plate number 1REC517:
If you believe you or someone you know has had an encounter with Lewis or you know the author of the note, investigators ask that you contact the San Diego Human Trafficking Task Force at 1-888-373-7888 or text 233733.
“The jury’s guilty verdicts are a powerful reminder that human trafficking has no place in our society. These verdicts are not just justice for the victims – it is a warning to human traffickers everywhere that those who exploit and attempt to exploit others for profit will be prosecuted to the fullest extent of law, no matter how long it takes,” said U.S. Attorney Adam Gordon. “I commend the bravery of the survivors who came forward. Their truth helped convict a predator – and protect countless others.”
“This guilty verdict sends the powerful message that those who exploit children will be held accountable to the fullest extent of the law,” said Shawn Gibson, special agent in charge for Homeland Security Investigations (HSI) San Diego. “This outcome is the result of relentless cooperation among local, state, and federal law enforcement agencies. Our agency remains steadfast in our mission to bring perpetrators of these heinous crimes to justice and to stand beside every victim until justice is served.”
“Every year, there are thousands of reported human trafficking cases across the United States — including right here in California,” said Attorney General Rob Bonta. “Whether it’s for sex or labor, abusing power to force or coerce someone into doing something against their will is wrong. At the California Department of Justice, we’re committed to standing up for survivors, disrupting and dismantling human trafficking rings, and securing justice. I am thankful for our federal, state and local partners because it takes all of us to combat human trafficking. If you or someone you know has been affected by human trafficking, there are resources available to you. You are not alone.”
“As a member of the Human Trafficking Task Force the protection of our youth is our top priority,” said San Diego Police Chief Scott Wahl. “This case highlights the importance of collaboration and the need to share information in order to bring suspects like this into custody.”
Lewis is scheduled to be sentenced on August 1, 2025.
This case is being prosecuted by Assistant U.S. Attorney Lyndzie M. Carter and Derek Ko.
DEFENDANT Case Number 24cr1349-JES
Steven Terrell Lewis Age: 39 El Cajon, CA
SUMMARY OF CHARGES
Attempted Coercion/Enticement of a Minor – 18 U.S.C., Section 2422(b)
Maximum penalty: Ten-year mandatory minimum up to life
Attempted Sex Trafficking by Force/Coercion, 18 U.S.C., Section 1591(a)
Maximum penalty: Fifteen-year mandatory minimum up to life
INVESTIGATING AGENCIES
San Diego Human Trafficking Task Force
Homeland Security Investigations
National City Police Department
El Cajon Police Department
San Diego Sheriff’s Office
San Diego District Attorney’s Office
Five Charged in Human Smuggling Event that Led to at Least Three DeathsRead the Press Release
SAN DIEGO – Two complaints were filed in federal court today charging five people with participating in a human smuggling event that led to the deaths of at least three migrants, including a 14-year-old boy from India. His 10-year-old sister is still missing at sea and presumed dead; their father is in a coma and mother is also hospitalized.
According to court records, on May 5, 2025, witnesses observed an overturned panga boat at a beach in Del Mar, California. Bystanders and San Diego Lifeguards participated in rescue efforts. Law enforcement officials recovered three bodies, including the boy, identified in court records as P.P.B. Four others were rescued and hospitalized, including P.P.B.’s mother and father; nine others were initially unaccounted for, including P.B.B.’s 10-year-old sister.
Two men believed to be involved in the smuggling event – Mexican nationals Julio Cesar Zuniga Luna and Jesus Juan Rodriguez Leyva - were arrested Monday at the beach and charged today with Bringing in Aliens Resulting in Death and Bringing in Aliens for Financial Gain.
Later Monday night, Border Patrol agents were conducting operations in Chula Vista, California where they identified a vehicle that had been observed at the scene of the maritime smuggling incident earlier that day. The driver of the vehicle fled the scene. During the investigation, Border Patrol Agents identified two other vehicles that were involved in the smuggling event and were able to successfully stop and arrest the drivers of these load vehicles and locate eight of the nine migrants missing from the boat, with the exception of the 10-year-old sister of P.P.B.
Melissa Jenelle Cota, Gustavo Lara and Sergio Rojas-Fregosa – all Mexican nationals - were arrested and charged with Transportation of Illegal Aliens. Rojas-Fregoso, was identified as an alien who had previously been deported on December 19, 2023.
“The drowning deaths of these children are a heartbreaking reminder of how little human traffickers care about the costs of their deadly business,” said U.S. Attorney Adam Gordon. “We are committed to seeking justice for these vulnerable victims, and to holding accountable any traffickers responsible for their deaths.”
“Human smuggling, regardless of the route, is not only illegal but extremely dangerous. Smugglers often treat people as disposable commodities, leading to tragic and sometimes deadly consequences, as we saw in this case,” said Shawn Gibson, Special Agent in Charge of HSI San Diego. “Yesterday's heartbreaking events are a stark reminder of the urgent need to dismantle these criminal networks driven by greed. The HSI along with the U.S. Border Patrol, U.S. Coast Guard, and other partners from the Marine Task Force, remains firmly committed to holding those responsible accountable for these senseless deaths.”
This case is being prosecuted by Assistant U.S. Attorneys Sean Van Demark and Edward Chang.
DEFENDANTS
Case Number 25mj02403-JLB
Jesus Ivan Rodriguez-Leyva Age: 36 Mexico
Julio Cesar Zuniga-Luna Age: 30 Mexico
SUMMARY OF CHARGES
Bringing in Aliens Resulting in Death – Title 8, U.S.C., Sections 1324(a)(1)(A)(i), (v)(II), and (a)(1)(B)(iv)
Maximum penalty: Death or Life in Prison and $250,000 fine
Bringing in Aliens for Financial Gain – Title 8, U.S.C., Section 1324(a)(2)(B)(ii)
Maximum penalty: Ten years in prison with a three-year mandatory minimum and $250,000 fine
Case Number 25mj2386-JLB
Melissa Jennelle Cota Age: 33 Mexico
Gustavo Lara Age: 32 Mexico
Sergio Rojas-Fregoso Age: 31 Mexico
SUMMARY OF CHARGES
Transportation of Illegal Aliens – Title 8, U.S.C., Section 1324(a)(1)(A)(ii)
Maximum penalty: Ten years in prison and $500,000 fine
Deported Alien Found in the United States – Title 8, U.S.C., Section 1326
Maximum penalty: Two years in prison and $250,000 fine
INVESTIGATING AGENCIES
Homeland Security Investigations – Marine Task Force
Homeland Security Investigations
U.S. Customs and Border Protection
United States Coast Guard
San Diego Lifeguard Service
San Diego County Medical Examiner’s Office
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
U.S. Attorney’s Office Filed 124 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 124 border-related cases this week, including charges of assault on a federal officer, bringing in aliens for financial gain, reentering the U.S. after deportation, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On April 28, Jose Maria Murillo Estrada, a Mexican national, was arrested and charged with Assaulting, Resisting, or Impeding Federal Officers and reentry after deportation. According to a complaint, the assault happened after Murillo attempted to make entry into the United States from Mexico through the San Ysidro Port of Entry by running through vehicle primary lanes and was intercepted by officers.
- On April 27, Emma Alejandra Medina, a U.S. citizen, was arrested and charged with Attempted Bringing in Aliens for Financial Gain. According to a complaint, Medina was captain of a boat that was transporting eight undocumented immigrants on San Diego Bay.
- On April 26, Jorge Alexandro Tellez, a U.S. citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Tellez was taken into custody by Customs and Border Protection officers after he attempted to cross the border in his vehicle in the San Ysidro Port of Entry’s SENTRI lane with 286 pounds of methamphetamine concealed in all four doors, the seats, the spare tire, the tailgate, and in multiple tool bags located inside the vehicle.
Also this week, a number of defendants with criminal records were convicted by a jury or sentenced for border-related crimes such as illegally re-entering the U.S. after previous deportation. Here are a few of those cases:
- On May 1, Juan Morales-Lopez, a Mexican national who was last deported in November 2024 and immediately returned on December 10th, was sentenced in federal court to 18 months in custody consecutive to 12 months custody for violating the terms of his supervised released for his earlier illegal entry conviction, for a total of 30 months in custody. Morales-Lopez has 10 illegal entry felony convictions in total and has been removed from the United States a total of 35 times.
- On May 1, Jose Ramon Ochoa-Monteverde, a Mexican national living in the United States on a Visa, was sentenced in federal court to 84 months in custody for his role as a coordinator and courier for a drug trafficking organization based in Mexico, Imperial Valley, and the Central District of California. In one instance, Ochoa-Monteverde loaded a tractor trailer with duffel bags containing 106.38 kilograms of methamphetamine at a truck stop in Brawley, CA.
- On April 28, Alejandro Gutierrez-Aguilar, who was previously convicted of Possession with Intent to Distribute in 2014, was sentenced in federal court to 30 months in custody for again entering the U.S illegally.
Pursuant to the Department’s Operation Take Back America priorities, federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Gun Trafficker Sentenced to 135 Months in Prison for Robbing ATF Agent with Machine GunRead the Press Release
SAN DIEGO – Jonathan Manuel Flores was sentenced in federal court today to 135 months in prison for his role in an illegal firearms business and for robbing an undercover Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent at gun point during a machine gun deal gone wrong.
ATF special agents were conducting a months-long investigation into the trafficking of privately manufactured firearms, commonly referred to as “ghost guns,” and guns modified with illegal auto conversion devices that transform everyday firearms into dangerous machine guns, when the defendant decided to rob an undercover ATF special agent, instead of selling the agent the firearm.
During that deal on February 17, 2023, ATF special agents conducted an undercover operation in San Diego to purchase a Glock pistol with a full auto conversion device, commonly known as a “Glock Switch,” for $2,400.
In a meeting in the parking lot of Walmart on Murphy Canyon Road, the defendant insisted that the gun deal take place in the backseat of his car. The undercover agent got into the back seat of the defendant’s parked car as requested. When the undercover agent entered the car there were two other individuals seated in the driver’s seat and front passenger seat of the car. Once inside the car, Flores showed the agent a Glock pistol with an extended magazine inserted and a machinegun conversion device installed.
Although the agent asked to hold the firearm, Flores insisted the agent show and count the money first. As the undercover agent finished counting $2,000 in cash, the defendant pulled back the slide on the pistol to make it ready to shoot and pushed the muzzle into the undercover agent’s ribcage. He then said, “Get the f---- out of the car dog before I smoke you” while grabbing the cash from the agent’s hand. The agent successfully exited the vehicle. Flores and his two companions fled. Flores was later apprehended with the assistance of the San Diego Police Department.
“This robbery is a stark reminder of the extreme danger our agents face every day in their efforts to keep illegal firearms off our streets,” said U.S. Attorney Adam Gordon. “We are grateful for our law enforcement partners working to keep these dangerous firearms out of the hands of felons.”
“ATF’s core mission is to protect the public by investigating and apprehending the most violent offenders in our communities,” said ATF Los Angeles Special Agent in Charge Kenny Cooper. “It is an honor to work with our state, local, and federal partners to successfully carry out our public safety mission.” Cooper thanked the U.S. Attorney’s Office, the El Cajon Police Department, and San Diego Police Department for working with ATF in the investigation, apprehension, and successful prosecution of Jonathan Manuel Flores.
This case is being prosecuted by Assistant U.S. Attorneys Evangeline Dech and Alicia Williams.
DEFENDANT Case Number 23cr00512CAB
Jonathan Manuel Flores Age: 20 Chula Vista, CA
SUMMARY OF CHARGES
Assault on a Federal Officer with a Deadly or Dangerous Weapon - 18 U.S.C. § 111(b)
Maximum Penalties: Twenty Years in prison; $250,000 fine
Brandishing a Firearm in Furtherance of a Crime of Violence - 18 U.S.C. § 924(c)
Maximum Penalty: Mandatory minimum seven years to life in prison, consecutive to any other term of imprisonment imposed as to Count 5; $250,000 fine
Engaging in the Business of Dealing Firearms Without a License - 18 U.S.C. § 922(a)(1)(A), 923(a), and 924(a)(1)(D); Aiding and Abetting - 18 U.S.C. § 2
Maximum penalties: Five years in prison; $250,000 fine
INVESTIGATING AGENCY
Bureau of Alcohol, Tobacco, Firearms and Explosives
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce gun violence and other violent crime, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.
Woman Sentenced to 41 Months for Alien Smuggling Event that Left a 71-Year-Old Cyclist Critically InjuredRead the Press Release
SAN DIEGO – Elizabeth Ugarte Rios of Vista was sentenced in federal court today to 41 months in prison for striking and critically injuring a 71-year-old cyclist while transporting undocumented immigrants in her vehicle.
According to court documents, on August 4, 2024, Rios drove to Otay Lakes County Park with her minor daughter as a passenger and picked up a group of undocumented aliens who had earlier scaled a fence at the U.S.-Mexico border.
The crash occurred minutes later on Wueste Road, a two-lane highway in Chula Vista. According to the government’s sentencing memo, the defendant was travelling at 67 mph – almost twice the posted speed limit - when she swerved across the double-yellow line to pass another vehicle. A uniformed Border Patrol agent was following in an unmarked vehicle.
Rios hit the brakes four seconds before the collision, striking the cyclist at a speed of approximately 30 miles per hour. One witness said the cyclist flew approximately 10 feet in the air and landed on the side of the road.
The cyclist, Robert Hilborn, attended today’s sentencing hearing with his wife, Sharon, and two adult sons. Sharon Hilborn read statements on behalf of the family. She said her husband was hospitalized for 68 days and suffered several strokes. He was on a ventilator for many days and suffered lacerations to his head, neck, and stomach plus orthopedic injuries and deep lacerations to his legs.
Sharon Hilborn told the court her husband used to ride his bike 80-100 miles per week, and being fit and active was a major source of his joy. Their lives are now dominated by going to medical appointments and therapy sessions. Members in the court gallery were audibly crying as Sharon Hilborn spoke about how her family has been impacted by this event.
This case is being prosecuted by Assistant U.S. Attorney Eric Chiang.
DEFENDANT Case Number 24cr01772-RBM
Elizabeth Ugarte Rios Age: 38 Vista, CA
SUMMARY OF CHARGES
Transportation of Certain Aliens During and in Relation to Which the Person Causes Serious Bodily Injury to, or Places in Jeopardy the Life of, Any Person – Title 8, U.S.C., Section 1324(a)(1)(A)(ii) and (a)(1)(B)(iii)
Maximum penalty: Twenty years in prison and $250,000 fine
INVESTIGATING AGENCY
United States Border Patrol
Man Charged with Smuggling Protected Parakeets Inside the Boots he was WearingRead the Press Release
SAN DIEGO – Naim Lajud Libien was arrested and charged with smuggling 12 protected Orange Fronted Parakeets into the U.S. stuffed inside the boots he was wearing and inside a seat compartment in his car. At least two of the birds died, and a third appeared to have a broken neck.
Lajud Libien, a citizen of Mexico, attempted to cross the border in his vehicle after presenting a Border Crossing Card at the Otay Mesa Port of Entry on April 29 at 3:10 p.m. He was diverted to secondary inspection. Once he stepped outside of his 2017 Jeep Grand Cherokee, the Customs and Border Protection officer noticed bulges around his ankles. For safety reasons, the officer conducted a pat down and discovered what appeared to be birds wrapped in nylon stockings concealed inside the boots.
A CBP Agricultural Specialist responded to the security office and removed six birds from the defendant’s boots – three in the right, three in the left, all tied at the feet and wrapped in panty hose. The birds were later identified by a U.S. Fish and Wildlife Service inspector as Orange Fronted Parakeets (Eupsittula canicularis). The birds were placed in a bird cage with food and water until they could be cared for by Veterinary Services. Some of the birds appeared to have injuries on their feet where they were tied.
“Smuggling at the border takes many forms, but the tragic impact on animals forced into such perilous conditions is deeply troubling,” said U.S. Attorney Adam Gordon. “We are committed to holding accountable those who endanger wildlife and public health through these reckless and inhumane smuggling practices.”
Lajud Libien was taken into custody on April 29, 2025. On April 30, 2025, CBP personnel could hear birds crying from his impounded vehicle. CBP officers and a U.S. Fish and Wildlife Inspector began a dismantling the car in search of the birds. Six more orange parakeets were found inside the seat cushion of the passenger seat of the vehicle. The birds were wrapped in panty hose and bound. Two of the birds were dead when they were discovered. One of the birds appears to have a broken neck. Three of the birds were still alive; however, in poor health.
Orange Fronted Parakeets (Eupsittula canicularis) are native to Western Mexico and Costa Rica. The Orange Fronted Parakeet is protected and has been listed on Appendix II of the Convention on International Trade in Endangered Species (CITES) since 2005. Libien’s concealment of the parakeets would have resulted in their entering the United States without any quarantine period or process.
To import many types of wildlife, the wildlife must be subject to quarantine before it can be introduced into the United States. Many animals have diseases that can be transferred to humans (zoonotic diseases) or other animals that can have disastrous health effects to human or animal populations. For example, birds can carry and spread Avian influenza (bird flu), psittacosis, and histoplasmos. Bird flu is highly contagious and can cause flu like symptoms, respiratory illness, pneumonia and death in humans and other birds including the United States poultry farms. There are many other diseases that can be transmitted from different animals and have disastrous effects, that is why it is necessary to quarantine animals entering the United States to limit and safeguard against this potential disease transmission.
This case is being prosecuted by Assistant U.S. Attorney Emily Allen and and Elizabet Brown.
DEFENDANT Case Number 25-mj-02213
Naim Lajud Libien Age: 54 Mexico
SUMMARY OF CHARGES
Importation Contrary to Law – 18 U.S.C. § 545
Maximum penalty: Twenty years in custody, $250,000 fine
INVESTIGATING AGENCIES
U.S. Fish and Wildlife Service – Office of Law Enforcement
Homeland Security Investigations
* The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
University of San Diego Women’s Volleyball Team Joins U.S. Attorney’s Office and City Attorney’s Office to Launch Fentanyl Awareness CampaignRead the Press Release
SAN DIEGO – The U.S. Attorney’s Office, San Diego City Attorney’s Office and Olé Foundation for the University of San Diego today launched a social media campaign featuring members of USD’s women’s volleyball team to promote fentanyl awareness and overdose prevention. The campaign coincides with the fourth annual National Fentanyl Awareness Day on April 29.
The goal of this joint effort is to raise awareness of the dangers of fentanyl, to reduce accidental use or overdose, and in the event of an overdose, to educate students on how to save lives in an emergency.
“These student athletes are terrific ambassadors for the messages of fentanyl awareness and prevention,” said U.S. Attorney Adam Gordon, “We are making progress every day in preventing accidental fentanyl poisonings, and we are grateful for such committed partners like the City Attorney’s Office and the University of San Diego knowing that their actions will help save lives.”
“Fentanyl continues to claim lives across our communities, and awareness is one of the most powerful tools we have to fight back,” said City Attorney Heather Ferbert. “We’re proud to partner with the Department of Justice and the University of San Diego’s student athletes to share life-saving information. By working together, we can help prevent tragedy and protect our community”.
The student athletes are showcased in a video filmed at various locations on USD’s campus, each reciting a line about the dangers of fentanyl, recognizing the signs of an overdose, and the importance of naloxone (also known by the brand name Narcan).
Naloxone is an opioid overdose reversal medication, available either as a nasal spray or an injector. Many pharmacies carry naloxone. In California, you can get naloxone from a pharmacist without a prescription. It is also possible to get naloxone from community-based distribution programs, local public health groups, or local health departments, free of charge. For more information about naloxone and how to get training on using it, visit: Naloxone Information.
In the public service announcements, the student athletes state the following:
Winning at the Division One level takes a lot of skill, a team committed to excellence, and maybe a little luck.
Because I know some of us have our superstitions
I must have this meal before every game
I always put my left shoe on before my right shoe
But the one thing I will not do is try my luck with a pill that I didn’t get at a pharmacy
That’s because what you might think are common medicines like Adderall, Xanax, or Percocet
Could contain a deadly amount of fentanyl
Taking drugs is a risk that we just won’t take.
Fentanyl doesn’t care about the win or the loss. It doesn’t care about your age. It doesn’t care about your family, teammates, or friends. It doesn’t care if you get lucky the first time.
As a student athlete, I know I set an example to those around me, on our team and in our community.
Know what Narcan is, and how to use it – or know who to call to get help.
And know what those overdose signs are, like someone you can’t arouse, snoring sounds, shortness of breath, vomiting or turning blue. You have the power to keep our community safe.
We here at USD are all members of the same team.
And safety isn’t about luck, it’s about knowledge and prevention.
Just remember, if you are ever in doubt, call 911.
Let’s take luck out of it
We are teaming up to save lives from fentanyl
Because as a USD Torero, we know it takes a team.
This campaign uses the hashtags #TakesMoreThanLuck #ItTakesATeam. The social media public service announcement can be found here.
The campaign is being deployed over social media platforms, including Instagram, X (formerly Twitter), Snapchat, LinkedIn, and YouTube, by the individual student-athletes, the Department of Justice, the University of San Diego Athletic Department, and other coalition members.
This is the third time that the U.S. Attorney’s Office and the City Attorney’s Office have teamed up to feature student athletes in partnership with an NIL collective. For this social media campaign, the offices partnered with the Olé Foundation at USD, which is dedicated to empowering student-athletes by providing education, resources, and guidance to navigate the evolving landscape of NIL opportunities. The department helps scholar-athletes maximize their personal brand, ensuring they make informed decisions while maintaining integrity and balancing their academic and athletic commitments. Through strategic partnerships, mentorship, and compliance support, the department prepares student-athletes for success in the NIL space and beyond.
The U.S. Attorney’s Office and the City Attorney’s Office have previously partnered with the SDSU women’s soccer team, Aztec Link, the SDSU men’s basketball team and their NIL collective, the MESA Foundation, to create similar public service announcements and media campaigns that at the time were the first such collaborations of their kind. The campaigns have since received over a million impressions.
Additional fentanyl prevention resources can be found at San Diego County’s Community & Parent Toolkits, which are available in both English and Spanish.
The U.S. Attorney’s Office’s participation in the social media campaign with USD’s NIL Department is not an endorsement of any product, service, or enterprise associated with the department.
Old Town National City Gang Member Sentenced to 10 years for Distributing Methamphetamine Near SchoolRead the Press Release
SAN DIEGO – Manuel Joseph Mariscal, an Old Town National City criminal street gang member known by the moniker “Pony,” was sentenced today in federal court to 120 months in prison.
In June of 2022, task force officers from the East County Regional Gang Task Force conducted two controlled purchases involving the distribution of methamphetamine, a Ruger Mini Thirty CAL. 7.62 x 39 rifle and several rounds of ammunition from Mariscal. The distribution occurred at Mariscal’s residence located just 852 feet away from Zamorano Elementary School in San Diego.
On June 21, 2023, a state search warrant was executed on Mariscal’s residence, wherein additional methamphetamine, a firearm, ammunition, a firearm silencer, a firearm laser sign with gun mount parts, heroin and a composition book with pay and own information common in the drug trafficking business were discovered. On that date, Mariscal was arrested on the federal charges stemming from the June 2022 controlled purchases.
In addition to the federal charges, Mariscal is currently facing state charges for the additional contraband seized in connection to the search warrant execution on his residence in San Diego County Superior Court, Dkt. No. CD301145, charging Mariscal with child abuse, possession for sale of a controlled substance, possession of a firearm by a possessor of a controlled substance, possession of a firearm by a felon, and a prohibited person owning firearm/ammunition.
Mariscal, a serial offender marking his fourth conviction for being a felon in possession of a firearm, entered a guilty plea on this federal case on September 17, 2024.
This case is being prosecuted by Assistant U.S. Attorney Lyndzie M. Carter.
DEFENDANT Case Number 23cr1470-JLS
Manuel Jospeh Mariscal Age: 49 San Diego, CA
SUMMARY OF CHARGES
Distribution of Methamphetamine Near a School – Title 21, U.S.C., Sections 841(a)(1) and 860
Maximum penalty: Eighty years in prison and $10 million fine
Felon in Possession of a Firearm – Title 18, U.S.C., Section 922(g)(1)
Maximum penalty: Ten years in prison and $250,000 fine
Felon in Possession of Ammunition– Title 18, U.S.C., Section 922(g)(1)
Maximum penalty: Ten years in prison and $250,000 fine
INVESTIGATING AGENCIES
East County Regional Gang Task Force
Federal Bureau of Investigation
San Diego County Sheriff’s Office
National City Police Department
San Diego County District Attorney’s Office
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Justice Department Reaches Settlement with California Towing Company for Illegally Auctioning a Navy Lieutenant’s Car While He Was Deployed at SeaRead the Press Release
Note: View settlement here.
The Justice Department today announced that it reached an agreement with California towing company Tony’s Auto Center to resolve allegations that it illegally auctioned a deployed Navy Lieutenant’s car, in violation of the Servicemembers Civil Relief Act (SCRA). Under the settlement agreement, U.S. Navy Lieutenant Jonathan Liongson will receive $7,500 in damages. The United States will also receive a $2,000 civil penalty, and Tony’s Auto Center must implement new policies to prevent future violations of the SCRA.
According to the United States’ complaint, in November 2022, before leaving for deployment aboard the USS Bunker Hill, Lieutenant Liongson placed personal items in his 2011 Mazda 6 and parked it at a friend’s house. While he was deployed at sea, Tony’s Auto Center towed the car and, about two months later, sold it at auction without first obtaining a court order, as is required by the SCRA.
“Members of our armed forces should not have to worry about their cars being auctioned off while they are deployed on missions defending our freedoms, liberties, and rights,” said Assistant Attorney General Harmeet K. Dhillon of the Civil Rights Division. “This settlement should send a strong message to other towing companies that they should not take advantage of our servicemembers while they are keeping Americans safe.”
“The SCRA protects the rights of the men and women who serve in our Armed Forces, which allows them to devote their full attention to defending our country,” said U.S. Attorney Adam Gordon for the Southern District of California. “While Lieutenant Liongson was at sea, he understood that his ship’s mission and the duration of their deployment could change at any moment. He accepted that reality in the fulfillment of his solemn oath. In turn, the SCRA provides grace and understanding about certain personal affairs. Lieutenant Liongson’s car should not have been auctioned off in his absence. We hope this settlement encourages all towing companies to review and improve their policies and ensure that the rights of all servicemembers are honored and respected.”
The SCRA is a federal law that provides a variety of financial and housing protections to members of the U.S. military. The law prohibits a towing company from auctioning off a vehicle owned by a servicemember unless it first obtains an order from a court allowing it to do so.
Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at http://legalassistance.law.af.mil/.
The Justice Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the Department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA. Additional information on the Department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
Chula Vista Towing Company Agrees to Settle Allegations That It Illegally Auctioned a Servicemember’s Car During DeploymentRead the Press Release
SAN DIEGO – Tony’s Auto Center, a towing company in Chula Vista, California, has agreed to a settlement to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) when it auctioned a car owned by an active-duty servicemember while he was deployed at sea.
According to the United States’ complaint, U.S. Navy Lieutenant Jonathan Liongson was deployed in November 2022 aboard the USS Bunker Hill. Before leaving for deployment, Lieutenant Liongson had placed personal items in his 2011 Mazda 6 and parked the car at a friend’s house.
While Lieutenant Liongson was at sea, the Chula Vista Police Department impounded the car because of an expired registration, and Tony’s Auto Center towed the car to its facility. About two months later, Tony’s Auto Center, through its agent, sold Lieutenant Liongson’s car at auction without first obtaining a court order authorizing the sale, as is required by the SCRA. In March 2023, the Lieutenant returned home from deployment to find that his car had been towed. He then contacted Tony’s Auto Center and learned that they had sold his car.
The SCRA is a federal law that provides legal and financial protections to military members and their families while they are in military service. One of the SCRA’s protections requires anyone holding a lien on the property of a servicemember to obtain a court order prior to auctioning off, selling or otherwise disposing of that property.
“The SCRA protects the rights of the men and women who serve in our Armed Forces, which allows them to devote their full attention to defending our country,” said U.S. Attorney Adam Gordon. “While Lieutenant Liongson was at sea, he understood that his ship’s mission and the duration of their deployment could change at any moment. He accepted that reality in the fulfillment of his solemn oath. In turn, the SCRA provides grace and understanding about certain personal affairs. Lieutenant Liongson’s car should not have been auctioned off in his absence. We hope this settlement encourages all towing companies to review and improve their policies and ensure that the rights of all servicemembers are honored and respected.”
“Members of our armed forces should not have to worry about their cars being auctioned off while they are deployed on missions defending our freedoms, liberties and rights,” said Assistant Attorney General Harmeet K. Dhillon of the Civil Rights Division. “This settlement should send a strong message to other towing companies that they should not take advantage of our servicemembers while they are keeping Americans safe.”
Under the settlement agreement, Lieutenant Liongson will receive $7,500 in damages. The United States will also receive a $2,000 civil penalty, and Tony’s Auto Center must implement new policies to prevent future violations of the SCRA.
The Civil Rights Division’s Housing and Civil Enforcement Section and the U.S. Attorney’s Office for the Southern District of California jointly handled this case. Since 2011, the Justice Department has obtained more than $481 million in monetary relief for more than 147,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit https://www.justice.gov/servicemembers.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at https://legalassistance.law.af.mil/.
This case was handled by Assistant U.S. Attorney Kelly A. Reis.
Wildlife Trafficker Sentenced for Smuggling Baby Spider MonkeysRead the Press Release
SAN DIEGO – Sarmad Ghaled Dafar of Houston, Texas was sentenced in federal court today to four months in custody and 180 days home confinement for trafficking six protected baby Mexican Spider Monkeys. He was also ordered to pay $23,501.70 in restitution for the cost of quarantining three of the monkeys at the San Diego Zoo.
According to admissions in his plea agreement, Dafar coordinated the purchases and smuggling of the monkeys across the border; received them in the U.S.; and arranged for their sale on three occasions in June 2022 and August 2023.
The crime was discovered on August 14, 2023, when U.S. Fish and Wildlife Service interdicted three baby Mexican Spider monkeys being smuggled into the United States through the Calexico West Port of Entry by Dafar’s coconspirator. A search of the coconspirator’s phone led to evidence that the monkeys were being smuggled for Dafar. Additional evidence revealed that Dafar had previously arranged to have at least three other baby Mexican spider monkeys smuggled into the United States from Mexico in June 2022 and July 2023. The fate of those three monkeys remains unknown.
“This crime ripped weeks-old baby monkeys from their mothers, disrupted fragile ecosystems, endangered a vulnerable species, and posed significant public health risks,” said U.S. Attorney Adam Gordon. “This is not merely an economic crime; it is a severe and lasting injury to both wildlife and public safety. Border security is not just about interdicting drugs and preventing illegal entries . It also involves protecting the public from dangerous diseases. U.S. Fish and Wildlife Service contributes to securing our borders and keeping the public safe.”
The defendant was ordered to surrender on or before May 29, 2025.
Baby Mexican spider monkeys continue to nurse throughout their first year and ordinarily are not fully weaned and independent until they turn two. Most baby Mexican spider monkeys will continue to stay close to their mothers until they are approximately four years old.
Dafar’s Facebook messages show that he intentionally sought baby monkeys to make the smuggling process easier. According to the government’s sentencing papers, on August 6, 2023, a Facebook user sent Dafar a news article about U.S. Border Patrol agents who “found sever spider monkeys during a smuggling attempt in Brownsville[, Texas].” Dafar responded, “I see it. He stupid brin[g] to[o] many of[] them and all adults they make a lot noise and they active. Baby’s most be sleeping and small to hide.”
Photos that Dafar sent via Facebook show how young the baby monkeys were. In June 2022, Dafar sent a Facebook message to a potential customer, J.W.M., that said, “I have monkey coming in 2 week baby monkey…Is a spider monkey… [I’ll] let you know when it is here because they gonna send it to me from California.” In his message to J.W.M., Dafar referred to his below-market price, “Is a spider monkey thos[e] kind go[e]s for 15k and up but I ask 8k.” Along with the message, Dafar attached a photo of the baby monkey under a heat lamp in a cage. In August 2023, Dafar sent the same customer a photo of two baby Mexican spider monkeys in diapers.
According to the government’s sentencing memo, the June 2022 photo (right) of what appears to be a baby spider monkey under a heat lamp in a small cage suggests that Dafar understood or should have understood that the baby monkey he was selling had been prematurely separated from its mother.
According to testimony from U.S. Fish and Wildlife agents, Mexican spider monkey mothers will not voluntarily relinquish their babies and the entire troop of spider monkeys will try to defend the mother and baby from perceived threats. Consequently, to capture baby Mexican spider monkeys, poachers will typically have to kill or incapacitate the mother and troop to capture the baby. In the case of the three baby Mexican spider monkeys that were interdicted on August 13, 2023, the San Diego Zoo performed genetic tests and determined that the three babies each had different mothers.
The three monkeys that Dafar arranged to be smuggled into the United States in June 2022 and July 2023, were not subjected to quarantine, which is required by law to prevent the spread of disease. The regulations are designed to protect the public from zoonotic diseases, which are diseases that spread from animals to humans. Some of the most dangerous zoonotic diseases are those that transfer from primates to humans, such as Ebola, Marburg, monkeypox, and simian immunodeficiency virus
Ultimately, the three Mexican spider monkeys that were seized and quarantined by Fish and Wildlife Service in August 2023 found a home at the Brookfield Zoo in Chicago as part of the Association of Zoos & Aquariums Wildlife Confiscations Network.
In the case of the three monkeys who were interdicted on August 13, 2023, Fish and Wildlife Service was able to place and pay for the baby Mexican spider monkeys’ quarantine and care at the San Diego Zoo.
The Brookfield Zoo now houses a troop of Mexican spider monkeys that consists of the three Mexican spider monkeys (Chrissy, Jack, and Janet) seized in this case, along with two Mexican spider monkeys (Frankee and Bucees) seized in another Southwest Border smuggling case. Here is a photo of Chrissy and Jack, as well as a photo of Chrissy and Jack along with their troopmates Frankee and Bucees:
This case was prosecuted by Sabrina L. Fève and Robert J. Miller.
DEFENDANT Case Number 24CR0615
Sarmad Ghaled Dafar Age: 33 Houston, Texas
SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison, $250,000 fine
INVESTIGATING AGENCY
U.S. Fish and Wildlife Service
U.S. Attorney’s Office Filed 135 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 135 border-related cases this week, including charges of transportation of illegal aliens, bringing in aliens for financial gain, reentering the U.S. after deportation, deported alien found in the United States, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week:
- On April 15, Jesus Manuel Zuniga Huerta and Jose Alberto Flores Avalos of Mexico were arrested at the Otay Mesa Port of Entry and charged with importing deadly fentanyl into the U.S. According to a complaint, Customs and Border Protection officers discovered 148 pounds of fentanyl in the rear frame well of a tractor-trailer driven by Zuniga Huerta.
- On April 15, Brian Jaime Sanchez, a Mexican national, was arrested and charged with Bringing in Aliens for Financial Gain. According to a complaint, Customs and Border Protection officers found an undocumented immigrant concealed in the trunk of Sanchez’s car as he attempted to cross the border at the Tecate Port of Entry.
- On April 17, Sergio Villalba-Serrano, a Mexican national, was arrested and charged with Departed Alien Found in the United States. According to a complaint, Villalba-Serrano was taken into custody near the Tecate Port of Entry after his Cadillac was stopped by U.S. Border Patrol agents. Villalba-Serrano had previously been deported on October 26, 2019, from Laredo, Texas.
Also this week, a number of defendants with criminal records were convicted by a jury or sentenced for border-related crimes such as illegally re-entering the U.S. after previous deportation. Here are a few of those cases:
- On April 10, 2025, following a three-day trial, a federal jury convicted seven-time felon Miguel Rolon of conspiring to bring in aliens and bringing in two aliens for financial gain. During trial, the evidence showed that Rolon picked up two Guatemalan nationals at a stash house in Tijuana, Mexico, coached the aliens to weave a fictious backstory to customs officers, and attempted to smuggle the same aliens into the United States using others’ U.S. passports at the San Ysidro Port of Entry. Rolon is scheduled to be sentenced on July 7, 2025.
- On April 18, 2024, Javier Gracia-Meza, a Mexican national, who was previously convicted of a felony illegal reentry offense, was sentenced in federal court to 15 months in custody for again entering the United States illegally.
- On April 18, 2025, Cruz Torres-Gonzalez, a Mexican national who was previously convicted of five felony immigration offenses, was sentenced in federal court to 54 months in custody for again entering the U.S illegally.
- On April 18, 2025, Pablo Lazcano-Quinonez, a Mexican national who was previously convicted of felony conspiracy to distribute marijuana, felony possession/use of drug paraphernalia, and two illegal reentry offenses, was sentenced in federal court to 15 months in custody for again entering the U.S illegally.
- On April 18, 2025, Jesus Eduardo Morga-Ceballos - a Mexican national who was previously convicted of a felony controlled substance offense in 2014, a misdemeanor criminal threat with intent to terrorize in 2014, and a felony illegal reentry in 2023 - was sentenced in federal court to 101 days in custody for again entering the U.S illegally.
Pursuant to the Department’s Operation Take Back America priorities, federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Sixteen Charged in Takedown of Drug Trafficking NetworkRead the Press Release
SAN DIEGO – Four indictments were unsealed in federal court charging 16 individuals throughout San Diego County with distributing large quantities of methamphetamine, fentanyl and heroin and laundering drug-trafficking proceeds.
In a coordinated takedown yesterday, more than 115 federal, state and local law enforcement officials arrested 10 defendants and executed three search warrants in the Nestor, Palm City, and Encanto neighborhoods within the City of San Diego. Six defendants were still being sought.
Including seizures today and throughout this investigation, authorities have confiscated 26.8 kilograms of powdered fentanyl; 5.7 kilograms of counterfeit pills containing fentanyl (estimated to be 57,000 pills); 25.7 kilograms of methamphetamine; 1.5 kilograms of cocaine; 1.1 kilograms of heroin; ketamine; MDMA; more than $40,000 in U.S. currency; a Maserati Ghibili; and nine firearms including an AK-47.
U.S. Attorney Adam Gordon said: “Together with our law enforcement partners, this office will disrupt and dismantle criminal organizations throughout the district. We are focused on the Department’s Take Back America priorities, and this investigation shows the direct results of implementing these priorities.”
“Drug trafficking organizations fuel addiction and erode the safety of our communities,” said DEA Special Agent in Charge Brian Clark. “This extensive drug trafficking investigation exposed a criminal network that peddled poison from coast to coast. Law enforcement put their collective authorities together to dismantle this organization brick by brick. We stand with our fellow law enforcement partners to ensure the community is safe and those involved in drug trafficking are brought to justice.”
“The indictments unsealed today paint a picture of an organization responsible for trafficking dangerous drugs into our communities – drugs that are killing Americans daily,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “These indictments should send a clear signal to drug trafficking organizations that where there’s money, there’s a trail, and IRS-CI is the best in the world at finding and following those trails. We are proud to partner with fellow law enforcement agencies to flush out DTOs that put our communities at risk.”
Today’s charges are the result of a 16-month investigation that included the use of court-authorized wiretaps, undercover agents, and confidential sources. According to the indictments, the defendants distributed dangerous drugs such as fentanyl throughout the U.S., including in Ohio and Kansas, on behalf of a San Diego County-based drug trafficking organization. The investigation uncovered the use of shell companies to gather and launder the proceeds of the drug trafficking enterprise from other states, including Colorado, Minnesota and Nebraska.
These cases are being prosecuted by Assistant U.S. Attorney Michael A. Deshong.
DEFENDANTS
Case Number 25cr0818-BAS
Rodrigo Maciel-Cortez Age: 25
SUMMARY OF CHARGES
Possession with Intent to Distribute more than 500 Grams of Methamphetamine, in violation of Title 21 U.S.C. § 841(a)(1)
Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10 million fine
Conspiracy to Distribute Methamphetamine, in violation of Title 21 U.S.C. § 841(a)(1) and 846
Maximum Penalty: Twenty years in prison; $1 million fine.
Criminal Forfeiture; Title 21 U.S.C. § 853
Case Number 25cr0819-BAS
Elijah Roman Age: 28
Leonela Veronica Leal Age: 26
Cindy Camarena-Gonzalez Age: 27
Adan Antonio Sandoval-Luna Age: 30
SUMMARY OF CHARGES
Conspiracy to Distribute more than 50 Grams of Methamphetamine (Actual) and more than 400 grams of Fentanyl, in violation of Title 21 U.S.C. § 841(a)(1) and 846
Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10 million fine
Distribution of more than 50 Grams of Methamphetamine (Actual), in violation of Title 21 U.S.C. § 841(a)(1)
Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10 million fine
Possession with Intent to Distribute more than 50 Grams of Methamphetamine (Actual), in violation of Title 21 U.S.C. § 841(a)(1)
Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10 million fine
Conspiracy to Launder Monetary Instruments, in violation of Title 18 U.S.C. § 1956
Maximum Penalty: Twenty years in prison; $5,000 fine
Criminal Forfeiture; Title 21 U.S.C. § 853
Case Number 25cr0820-AJB
Luis Carlos Franco Age: 24
Jesus Adrian Garcia Jr. Age: 32
Jose Alexander Flores Age: 23
Andres Emilio Arce-Corrales Age: 18
SUMMARY OF CHARGES
Conspiracy to Distribute more than 100 Grams of Heroin, in violation of Title 21 U.S.C. § 841(a)(1) and 846
Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10,000,000 fine
Distribution of more than 100 Grams of Heroin, in violation of Title 21 U.S.C. § 841(a)(1)
Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10 million fine
Conspiracy to Distribute more than 500 Grams of Methamphetamine, in violation of Title 21 U.S.C. § 841(a)(1) and 846
Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10 million fine
Possession with Intent to Distribute more than 500 Grams of Methamphetamine, in violation of Title 21 U.S.C. § 841(a)(1)
Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10 million fine
Criminal Forfeiture; Title 21 U.S.C. § 853
Case Number 25cr0821-WQH
Diego Hernandez Age: 24
SUMMARY OF CHARGES
Distribution of more than 400 Grams of Fentanyl, in violation of Title 21 U.S.C. § 841(a)(1)
Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10 million fine
Criminal Forfeiture; Title 21 U.S.C. § 853
INVESTIGATING AGENCIES
Drug Enforcement Administration
Oceanside Police Department
IRS Criminal Investigation
U.S. Bureau of Land Management
San Diego Police Department
San Diego County Sheriff’s Department
Carlsbad Police Department
United States Marshals Service
* Six defendants are still being sought
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
High Intensity Drug Trafficking Areas (HIDTA) program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. This grant program is administered by the Office of National Drug Control Policy (ONDCP). There are currently 33 HIDTAs, and HIDTA-designated counties are located in 50 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.
U.S. Attorney’s Office Filed 116 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 116 border-related cases this week, including charges of transportation of illegal aliens, bringing in aliens for financial gain, receipt of bribes by public official, reentering the U.S. after deportation, deported alien found in the United States, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week, includes:
- On April 10, six Mexican nationals were arrested and charged with various immigration crimes. According to complaints, they were apprehended by Border Patrol agents while attempting to illegally enter the U.S. about three miles east of the Otay Mesa Port of Entry. While an agent turned his attention to two other suspected illegal border crossers, the six defendants absconded after being placed in handcuffs. Jose Lastra Palafox, Pedro Orlando Aguilar-Vazquez, Javier Eduardo Jimenez Gonzalez, Jose Javier Solis Jardon, Joel Alonso Soria-Garcia, and Lazaro Velazquez Morales were later recaptured.
- On April 6, Jose Manuel Guzman, a United States citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, he was intercepted by U.S. Customs and Border Protection officers when a drug detection dog alerted to his vehicle as he attempted to cross the border at the Otay Mesa Port of Entry. Officers found 115 packages of methamphetamine weighing 125 pounds, concealed in the quarter panels, gas tank and doors of the vehicle, the complaint said.
- On April 7, Raul Vallejo-Isordia, Victor Manuel Quintero Sanez, Noe Avila, Jose Juan Cisneros-Cisneros and Valentin Gonzalez-Elizalde – all Mexican nationals - were arrested and charged with Attempted Bringing in Aliens for Financial Gain and Attempted Entry after Deportation. According to a complaint, the defendants were taken into custody in connection with the smuggling of 17 undocumented immigrants who were intercepted by the U.S. Coast Guard 12 miles west of Point Loma.
- Also on April 7, Dennis Geovanny Marquez-Cordova of Honduras was arrested and charged with Deported Alien Found in the United States. According to a complaint, the defendant had been previously deported.
Federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Restaurant Owner Sentenced to 42 Months in Prison for Tax Evasion and COVID-Relief FraudRead the Press Release
SAN DIEGO – Restaurateur Leronce Suel was sentenced in federal court today to 42 months in prison for submitting more than $1.7 million in fraudulent applications for COVID relief programs and failing to report the income to the IRS.
Suel was convicted by a federal jury in September 2024 of wire fraud, conspiracy, and tax crimes. The court ordered him to pay $1,773,245 in restitution to the U.S. Small Business Administration and criminal forfeiture of $1,466,918 from the over $2.4 million in cash seized from Suel’s home in June 2022. Restitution to the IRS will be determined at a hearing on June 6, 2025.
Suel was the majority owner of Rockstar Dough LLC and Chicken Feed LLC, both of which operated restaurants in the San Diego area, including Streetcar Merchants in the North Park neighborhood.
“This defendant took resources meant to support those most vulnerable during a time of crisis and used them for his own enrichment,” said U.S. Attorney Adam Gordon. “By misappropriating over $1.7 million in COVID relief funds, he robbed individuals and families of the assistance they desperately needed. Today, justice holds him accountable for his exploitation of a public emergency for personal gain.”
According to evidence presented at his eight-day trial, Suel conspired with his business partner to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return and COVID relief applications. Suel’s businesses also fraudulently received approximately $1,773,245 million in COVID-related Paycheck Protection Program (PPP) loans and Restaurant Revitalization Fund (RRF) grants by falsely certifying his businesses were eligible and that his businesses would use the money appropriately.
Instead of using the COVID-19 relief program funds on eligible expenses like rent and payroll, Suel and his co-conspirator made substantial cash withdrawals from their business bank accounts and purchased a home in Arkansas. As part of their conspiracy, Suel concealed more than $2.4 million in cash in his bedroom.
On June 23, 2022, IRS-Criminal Investigation special agents executed a search warrant at Suel’s residence where they seized the $2.4 million in cash. During the trial, the evidence showed that Suel attempted to cover-up his crimes by providing false information to an accountant who prepared dozens of original and amended tax returns that contained false information.
In 2023, Suel signed and filed these original and amended tax returns for prior years that included false depreciable assets, business losses, and deductions. In one example, Suel caused one business to deduct significant amounts of rent for years 2020 and 2021, but evidence at trial established Suel paid no rent to that restaurant’s landlord.
Suel also failed to report income he received from his business, including millions of dollars in cash and personal expenses paid for by the businesses.
“Mr. Suel’s 10-plus years of tax evasion and fraudulent claims for COVID relief grants and loans caught up to him when a jury of his peers found him guilty,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Now Mr. Suel will feel the repercussions of his disregard for his fellow taxpayers. Our tax system only works when people pay their fair share, and IRS-CI will continue pursue those who evade their tax responsibilities to their fellow Americans.”
This case is being prosecuted by Assistant U.S. Attorney Christopher Beeler and Trial Attorney Julia Rugg of the U.S. Department of Justice Tax Division.
DEFENDANTS Case Number 23-CR-965-RBM
Leronce Suel Age: 47 Fayetteville, Arkansas
SUMMARY OF CHARGES
Wire Fraud Conspiracy – Title 18, U.S.C., Section 1349
Maximum penalty: Thirty years in prison and $1,000,000 fine
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum Penalty: Thirty years in prison and $1,000,000 fine
Conspiracy to Defraud the U.S. – Title 18, U.S.C., Section 371
Maximum Penalty: Five years in prison and $250,000 fine
Tax Evasion – Title 26, U.S.C., Section 7201
Maximum Penalty: Five years in prison and $100,000 fine
Filing False Tax Returns – Title 26, U.S.C., Section 7206(1)
Maximum Penalty: Three years in prison and $100,000 fine
Failure to File –Title 26, U.S.C., Section 7203
Maximum Penalty: One year in prison and $25,000
INVESTIGATING AGENCY
Internal Revenue Service – Criminal Investigation (IRS-CI)
California Restaurant Owner Sentenced for COVID-19 and Tax Fraud SchemesRead the Press Release
A San Diego restaurant owner was sentenced today to 42 months in prison for schemes to defraud COVID-19 relief programs and filing false tax returns.
According to court documents and evidence presented at trial, Leronce Suel was the majority owner of Rockstar Dough LLC and Chicken Feed LLC, both of which operated restaurants in the San Diego area, including Streetcar Merchants in the North Park neighborhood. He conspired with others to underreport over $1.7 million in gross receipts on Rockstar Dough’s 2020 corporate tax return and COVID-19 relief applications. Suel’s businesses fraudulently received $1,773,245 in COVID-related Paycheck Protection Program loans and Restaurant Revitalization Fund grants, two programs created to provide financial assistance to American suffering economic harm as a result of the COVID-19 pandemic.
Suel and his co-conspirator misappropriated COVID-19 relief program funds by making substantial cash withdrawals from their business bank accounts, purchasing a home in Arkansas, and keeping more than $2.4 million in cash in Suel’s bedroom.
IRS-CI Photo of approximately $2.4 million of cash seized by law enforcement, exhibit in United States v. Suel et al., number 23-CR-00965 in U.S. District Court for the Southern District of California. Credit IRS Criminal Investigation.Suel did not file timely tax returns for 2018 and 2019, despite being legally required to do so. On his 2020 through 2023 tax returns, Suel also did not report the income from his businesses including millions of dollars in cash he withdrew. Finally, in 2023, Suel filed false original and amended tax returns for multiple years, including personal tax returns for 2016 and 2017 that included false depreciable assets and business losses.
In September 2024, Suel was convicted by a federal jury of wire fraud, conspiracy to commit wire fraud, tax evasion, conspiracy to defraud the United States, filing false tax returns, and failing to file tax returns. Following the convictions, Suel agreed to forfeit $1,466,918 in U.S. currency.
In addition to this prison sentence, U.S. District Court Judge Ruth Bermudez Montenegro for the Southern District of California ordered Suel to pay approximately $1,773,245 in restitution to the Small Business Administration and forfeit $1,466,918. Restitution to IRS will be heard on June 6.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, and U.S. Attorney Adam Gordon for the Southern District of California made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorney Julia Rugg of the Tax Division and Assistant U.S. Attorney Christopher Beeler for the Southern District of California prosecuted the case.
Alpine Man Sentenced to Six Years for Fentanyl TraffickingRead the Press Release
SAN DIEGO – Erik David Morgan of Alpine was sentenced in federal court today to 72 months in prison for possessing a significant amount of fentanyl with the intent to distribute.
According to plea documents, Morgan used social media messaging applications to arrange to sell 3.5 grams of fentanyl for $150 to an individual who was, in fact, an undercover agent with Homeland Security Investigations (HSI).
On March 14, 2024, when Morgan arrived at the meeting location in El Cajon, he was encountered by uniformed El Cajon police officers, who discovered Morgan in possession of 10.05 grams of fentanyl.
Federal agents and task force officers with Homeland Security Investigations’ Fentanyl Abatement and Suppression Team (FAST) led this investigation.
HSI San Diego FAST is a multiagency task force comprising state, local and federal partners and was first established in August 2022 focusing on the disruption and dismantlement of criminal organizations that smuggle and distribute fentanyl with San Diego County. HSI’s FAST targets fentanyl smuggling and distribution networks to counter the rising overdose rate and decrease the availability and accessibility of fentanyl.
Fentanyl remains a serious threat. The latest DEA laboratory testing announced last fall indicated that five out of 10 pills tested contained a potentially deadly dose of fentanyl. Two milligrams of fentanyl is considered a lethal dose. For perspective, one gram of fentanyl, equivalent in size to a sugar packet, has the potential to kill up to 500 people.
This case is being prosecuted by Assistant U.S. Attorney Aaron McElhose.
This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
DEFENDANT Case Number 24cr787-BAS
Erik David Morgan Age: 44 Alpine, CA
SUMMARY OF CHARGES
Possession with Intent to Distribute Fentanyl – Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Twenty years in prison and $1,000,000 fine
INVESTIGATING AGENCIES
Homeland Security Investigations
El Cajon Police Department
Adam Gordon Sworn in as U.S. AttorneyRead the Press Release
SAN DIEGO – Adam Gordon, a career prosecutor who became a nationally-recognized expert on prosecutorial strategies to combat the fentanyl epidemic, was sworn in today as U.S. Attorney for the Southern District of California, one of the busiest federal districts in the nation. Mr. Gordon, 43, was appointed by Attorney General Pamela Bondi.
U.S. District Court Chief Judge Cynthia A. Bashant administered the oath of office to Gordon in the presence of his senior leadership team, office colleagues, friends and family.
“Thank you to President Trump and Attorney General Bondi for the opportunity to serve as the United States Attorney for the Southern District of California,” Mr. Gordon said. “I am deeply honored to lead this office and protect the people of this district. For too long, criminal organizations have exploited the chaos at our border. That chaos of criminality and lack of consequences cannot prevail. Together with our dedicated law enforcement partners, we will focus our resources on the Operation Take Back America priorities including securing the border, prosecuting cartel leaders, and removing dangerous offenders from our communities.”
The U.S. Attorney’s Office enforces federal criminal laws in the Southern District of California, which includes San Diego and Imperial counties, and represents the federal government in civil litigation. The office is one of the nation’s largest, comprised of approximately 300 attorneys and staff members. As the U.S. Attorney, Gordon is the chief federal law enforcement official for the district.
Mr. Gordon is a veteran prosecutor who has served as an Assistant U.S. Attorney for the Southern District of California since 2019. He most recently worked in the Organized Crime Drug Enforcement Task Forces Unit. Prior to that assignment, he was the office’s Criminal Division Opioid Coordinator for approximately three years.
Gordon was instrumental in creating the Fentanyl Abatement and Suppression Team (“FAST”) in San Diego County which is now a national model. Formed in September 2022, FAST is a multi-agency task force led by Homeland Security Investigations working in conjunction with federal partners, along with state and local agencies to target significant fentanyl distributors in San Diego County to reduce the overdose death rate. He also has personally prosecuted many of resulting in death cases, achieving justice for the families of victims of fentanyl poisonings, including the drug dealer responsible for the death of a 13-year-old in Coronado.
Prior to serving as a federal prosecutor, Mr. Gordon was a Deputy District Attorney in San Diego County where he prosecuted a variety of criminal matters but focused on violent crimes. From 2014 to 2018, Adam was in private practice in San Diego. Gordon received his bachelor’s degree in economics in 2004 from Harvard University, and his law degree from the University of Virginia School of Law in 2008.
Qualcomm Executive Convicted by Jury in $180 Million FraudRead the Press Release
SAN DIEGO – Dr. Karim Arabi was convicted by a federal jury today of fraud and money laundering charges in connection with a massive $180 million scheme targeting his then-employer, Qualcomm.
After a four-week trial, the jury deliberated for less than two days. The jury found that while working as vice president of Qualcomm’s Research and Development Department, Dr. Arabi committed fraud by developing a valuable microchip technology, marketing the technology through a company, Abreezio, which he created to conceal his involvement, and then selling the company and its purported technology to Qualcomm for $180 million.
As part of his employment with Qualcomm, Dr. Arabi had agreed that virtually all technology he invented while working at Qualcomm belonged to Qualcomm. To perpetrate the fraud, Dr. Arabi carefully hid his role as the new company’s shadow CEO, picked its corporate name (Abreezio) and weighed in on its office furniture.
Dr. Arabi created fake email accounts and sent phony emails to impersonate his sister, the supposed inventor of the new technology. In truth, the sister was a nonentity throughout its formation, development, marketing and sale. In the summer of 2015, when Abreezio was filing a new round of patent applications, the sister legally changed her last name to further conceal her relationship with Dr. Arabi.
According to evidence presented at trial, after the deal closed and Qualcomm unwittingly paid almost $92 million to Dr. Arabi’s sister, the campaign of concealment continued: Dr. Arabi invested the money in Canadian and Norwegian real estate while hiding his involvement, funneled funds back to his U.S. companies via intermediary shells, lied repeatedly through Qualcomm’s subsequent civil fraud suit, and received steady installments of laundered fraud proceeds until the month before his arrest in this case.
“The defendant took advantage of the trust placed in him, lining his pockets with millions by orchestrating a scheme to deceive and then bleed his own employer,” said Acting U.S. Attorney Andrew Haden. “His actions weren’t just a betrayal of the company - they were a direct attack on the very principles of fairness and integrity that keep business honest. Today’s jury verdict sends a clear message: In the Southern District of California, fraud has consequences. We will relentlessly pursue justice against those who try to profit through lies and deceit.”
“Dr. Arabi perpetrated an elaborate and exhaustive scheme to conceal, deceive, and defraud his own employer out of millions of dollars,” said FBI San Diego Acting Special Agent in Charge Houtan Moshrefi. “With today’s verdict, Dr. Arabi will now face the consequences of this massive fraud, sending the clear message that corporate executives who facilitate fraud will be held accountable for their crimes.”
“As vice president of Research and Development, Mr. Arabi was entrusted with protecting Qualcomm’s intellectual property rights,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Mr. Arabi executed a scheme to swindle Qualcomm out of $180 million for what was rightfully their own technology. This guilty verdict is reflective of outstanding investigative work by IRS-CI and our partners at the FBI and U.S. Marshal’s Service.”
Qualcomm actually paid $150 million to the coconspirators and others before discovering the fraud.
Two other defendants pleaded guilty in the scheme prior to Arabi’s trial. Ali Akbar Shokouhi, another former Qualcomm employee and the primary investor in Abreezio, pleaded guilty to money laundering and is scheduled to be sentenced on August 1, 2025; Sanjiv Taneja, Abreezio’s nominal CEO, pleaded guilty to money laundering and is scheduled to be sentenced on July 11, 2025.
This case is being prosecuted by Assistant U.S. Attorneys Nicholas W. Pilchak, Janaki G. Chopra and Eric R. Olah. The Justice Department’s Office of International Affairs provided substantial assistance.
DEFENDANT Case Number 22-CR-1152
Karim Arabi Age: 58 San Diego, CA
CHARGES
Wire Fraud Conspiracy, in violation of 18 U.S.C. § 1349
Maximum Penalties: Twenty years in prison; $1 million fine or twice the amount of the criminally derived property involved in the transaction
Wire Fraud, in violation of 18 U.S.C. § 1343
Maximum Penalties: Twenty years in prison; $1 million fine
Conspiracy to Launder Monetary Instruments, in violation of 18 U.S.C. § 1956(h)
Maximum Penalties: Twenty years in prison; fine of $500,000 or twice the amount of the criminally derived property involved in the transaction
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Internal Revenue Services, Criminal Investigation
United States Marshals Service
Royal Canadian Mounted Police
Økokrim, Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime
U.S. Attorney’s Office Filed 97 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 97 border-related cases this week, including charges of transportation of illegal aliens, bringing in aliens for financial gain, receipt of bribes by public official, reentering the U.S. after deportation, deported alien found in the United States, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week, includes:
- On March 24, Customs and Border Protection Officers Farlis Almonte and Ricardo Rodriguez were arrested and charged with Conspiracy to Bring in Aliens for Financial Gain, Bringing in Aliens for Financial Gain and Receipt of Bribes by Public Official. According to court records, the officers allowed dozens of cars carrying undocumented immigrants to pass through their inspection lanes at the San Ysidro Port of Entry from August 2024 through January 2025, in exchange for cash.
- On March 29, Osvaldo Parra Franco, a Mexican national, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Parra attempted to cross into the United States at the San Ysidro Port of Entry with methamphetamine, cocaine and fentanyl hidden in a spare tire and tailgate of his vehicle. He was intercepted by Customs and Border Protection officers after an alert from a narcotics detection canine.
- On March 30, Jesus Eduardo Carrasco-Romero, a Mexican national, was arrested three miles east of the Otay Mesa Port of Entry and charged with illegally entering the U.S. after previously being deported on March 20 in El Paso, Texas.
- On March 31, Francisco Anguiano Rios, a Mexican national, was arrested and charged with importation of a controlled substance after Customs and Border Protection officers found 209 packages containing 547 pounds of cocaine concealed in the fuel tank of the tractor trailer Rios was driving as it attempted to cross the border at the Otay Mesa Port of Entry.
- On March 31, Miguel Angel Gonzalez Lujan and Jesus Miguel Gonzalez Garcia, Mexican nationals, were arrested in Campo near the U.S.-Mexico border and charged with Transportation of Illegal Aliens after Border Patrol agents used a spike strip to deflate the front tires of their fleeing vehicle. Four undocumented immigrants were inside.
Federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Alien Smuggler Admits Role in Fatal Crash Following High-Speed PursuitRead the Press Release
SAN DIEGO – Sergio Josue Palomera of Chula Vista pleaded guilty in federal court today, admitting that he was transporting two undocumented immigrants who died when he crashed his car while fleeing U.S. Border Patrol at speeds exceeding 110 mph.
Border Patrol agents using remote video surveillance saw Palomera loading the two aliens—a man and a woman—into his car near the U.S.–Mexico border in Otay Mesa on October 22, 2024. An agent responded to the location and saw the car traveling west on State Route 905. The agent activated his lights and sirens to pull the car over.
According to his plea agreement, Palomera initially slowed down and began to move over onto a highway offramp, as if yielding to the Border Patrol agent’s attempt to pull him over. Palomera then quickly accelerated, drove through a red traffic light, and re-entered the highway in an attempt to flee. Palomera was traveling over 110 miles per hour in a 65-mph zone.
Within about one minute, Palomera lost control of the car on State Route 905, and it rolled over. The smuggled woman was ejected from the car and died instantly. The smuggled man suffered a traumatic head injury and died later that evening in the hospital.
Palomera’s sentencing is scheduled for July 2, 2025, at 9:30 a.m. before U.S. District Judge Todd W. Robinson.
This case is being prosecuted by Assistant U.S. Attorney David Fawcett.
DEFENDANT Case Number: 24cr2466
Sergio Josue Palomera Age: 23 Chula Vista, CA
SUMMARY OF CHARGES
Transportation of Certain Aliens Resulting in Death – Title 8, U.S.C., Section 1324(a)(1)(A)(ii) and (B)(iv)
Maximum penalty: Death or life in prison; $250,000 fine
INVESTIGATING AGENCY
United States Border Patrol
Five Alleged Sinaloa Cartel Money Launderers ChargedRead the Press Release
SAN DIEGO – Two federal grand jury indictments were unsealed in San Diego today against five alleged Sinaloa Cartel money launderers, including Alberto David Benguiat Jimenez, Israel Daniel Paez Vargas, Salvador Diaz Rodriguez, Christopher Ortega-Lomeli, and Christian Noe Amador Valenzuela. The indictments, returned in September and October 2022, charge the defendants with multiple drug trafficking and money laundering offenses. All defendants remain fugitives.
To date, these money laundering investigations have resulted in charges against 51 defendants and the seizure of more than $4.1 million dollars and approximately 1,304 kilograms of methamphetamine, 34 kilograms of heroin, 11 kilograms of cocaine, and 14 kilograms of fentanyl.
Four of the defendants - Benguiat Jimenez, Paez Vargas, Diaz Rodriguez and Amador Valezuela - along with Enrique Dann Esparragoza Rosas, who was previously charged, were also the target of sanctions imposed today by the Department of Treasury’s Office of Foreign Assets Control (OFAC).
OFAC has identified the defendants and others as members of a money laundering network supporting the Sinaloa Cartel, one of the most notorious and violent drug trafficking organizations in the world, and a U.S.-designated Foreign Terrorist Organization (FTO). The Sinaloa Cartel is responsible for a significant portion of the illicit fentanyl and other deadly drugs trafficked into the United States and has exploited multiple ports of entry along the southern border for its criminal activities. Please see https://home.treasury.gov/news/press-releases/sb0064.
The Drug Enforcement Administration’s Imperial Country District Office and Mexico City Country Office, along with the Internal Revenue Service – Criminal Investigation San Diego Office, Federal Bureau of Investigation San Diego Field Office, Homeland Security Investigations Calexico Office, and San Diego – Imperial County HIDTA are investigating these cases with assistance from the Department of Treasury’s Office of Foreign Assets Control (OFAC).
These cases are being prosecuted by Assistant U.S. Attorneys Matthew J. Sutton, Joshua Mellor, Victor White, and Paul Benjamin. Former Assistant U.S. Attorney Owen Roth provided substantial assistance in these cases.
DEFENDANTS
Case Number 22-cr-02386-TWR
Israel Daniel Paez Vargas Age: 45 Mexicali, MX
SUMMARY OF CHARGES
Conspiracy to Import Controlled Substances, in violation of Title 21 U.S.C. §§ 952, 960 and 963.
Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.
Conspiracy to Distribute Controlled Substances, in violation of Title 21 U.S.C. §§ 841(a)(1) and 846.
Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.
Conspiracy to Launder Monetary Instruments, in violation of Title 18 U.S.C. § 1956(h).
Maximum Penalty: Twenty years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved.
Case Number 22-cr-02387-TWR
Alberto David Benguiat Jimenez Age: 43 Mexico City, MX
Salvador Diaz Rodriguez Age: 39 Mexicali, MX
Christian Noe Amador Valenzuela Age: 36 Mexicali, MX Christopher Ortega-Lomeli Age: 38 Mexicali, MX
SUMMARY OF CHARGES
Conspiracy to Launder Monetary Instruments, in violation of Title 18 U.S.C. §1956(h).
Maximum Penalty: Twenty years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved.
Case Number 22-cr-02185-BAS
Enrique Dann Esparragoza Rosas Age: 39 Culiacan, MX
SUMMARY OF CHARGES
Conspiracy to Launder Monetary Instruments, in violation of Title 18 U.S.C. §1956(h).
Maximum Penalty: Twenty years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved.
Hobbs Act Extortion, in violation of Title 18 U.S.C. § 1951(a)
Maximum Penalty: Twenty years in prison, and $250,000 fine
INVESTIGATING AGENCIES
Drug Enforcement Administration
Internal Revenue Service – Criminal Investigation
Federal Bureau of Investigation
Homeland Security Investigations
San Diego - Imperial County HIDTA
Imperial Valley Law Enforcement Coordination Center - Intelligence
Department of Justice’s Office of International Affairs
Department of Treasury’s Office of Foreign Assets Control
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The High Intensity Drug Trafficking Areas (HIDTA) program, created by Congress with the Anti-Drug Abuse Act of 1988, provides coordination and assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. This grant program is administered by the Executive Office of the President - Office of National Drug Control Policy (ONDCP). There are currently 33 HIDTAs, and HIDTA-designated counties are located in 50 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.
U.S. Attorney’s Office Filed 90 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed 90 border-related cases this week, including charges of transportation of illegal aliens, reentering the U.S. after deportation, deported alien found in the United States, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week includes:
- Mexican national Aurora Karina Sanchez Quioano was arrested on March 23, 2025, and charged with illegally entering the U.S. after being previously deported after the U.S. Coast Guard reported a vessel onshore at Dog Beach in Ocean Beach. When a U.S. Border Patrol agent arrived at Dog Beach following the report, citizens pointed him towards a jogging trail where he found Sanchez soaking wet. Sanchez was previously deported on August 8, 2024.
- On March 23, 2025, Angel Alonso Peralta Fuerte and Juan Jose Diaz-Guerena, both citizens of Mexico, were arrested and charged with alien smuggling for financial gain after the vessel they were operating with 19 individuals on board was detained by the U.S. Coast Guard. All 19 passengers on the vessel admitted that they are citizens of Mexico without lawful documents allowing them to enter the United States and were arrested by San Diego based U.S. Border Patrol Agents. Peralta was previously deported on February 26, 2025, less than a month prior to this arrest. Two of the individuals on the vessel were also charged with attempted reentry of removed alien based on their prior criminal and immigration history. According to the complaint, several individuals of the boat stated they were paying between $3,000-15,000 if successfully smuggled into the United States.
- Xavier Garcia, a United States citizen, was arrested on March 26, 2025, when he attempted to cross into the U.S. from Mexico at the Otay Mesa Port of Entry on drug importation charges. According to a federal complaint, he was the driver and registered owner of a vehicle in which Customs and Border Protection officials found 503 packages containing more than 500 pounds of methamphetamine hidden in the engine area, seats, spare tire, doors, roof, tailgate, and center console of his vehicle.
Federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Four Defendants Charged After Warrant Served in El CajonRead the Press Release
SAN DIEGO – John Washburn, general manager of San Diego Powder & Protective Coatings in El Cajon, and three employees, made their first appearances in federal court today to face immigration charges stemming from a search warrant that was served by federal agents at the property yesterday.
Washburn, along with employees Gilver Martinez-Juanta, Miguel Angel Leal-Sanchez and Fernando Casas-Gamboa, were arrested yesterday. Washburn was charged with Conspiracy to Harbor Aliens; the employees were charged with using false documents to work in the United States.
According to the complaint, Washburn employed undocumented workers and allowed them to live in the company’s warehouse. The three charged employees allegedly provided a false attestation regarding their immigration status to secure employment at the business.
U.S. Magistrate Judge Barbara L. Major set bond for Washburn at $5,000 and ordered him and the other defendants to appear in court for a preliminary hearing on April 8, 2025, at 9:30 a.m.
The Homeland Security Investigations, San Diego Office is investigating these cases with assistance from the Department of Homeland Security, Office of Inspector General; General Services Administration, Office of Inspector General; United States Border Patrol; U.S. Customs and Border Protection; United States Immigration and Customs Enforcement, Enforcement and Removal Operations; Naval Criminal Investigative Service; Small Business Administration, Office of Inspector General; Drug Enforcement Administration, San Diego Field Division, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
These cases are being prosecuted by Assistant U.S. Attorneys Henry F.B. Beshar and Michael A. Deshong.
DEFENDANTS
Case Number 25mj1458-BLM
John Washburn Age: 57
SUMMARY OF CHARGES
Conspiracy to Harbor Aliens, in violation of Title 8, U.S.C. § 1324(a)(1)(A)(iii) and (v)(I); Maximum Penalty: Ten years in prison; $250,000 fine.
Case Number 25mj1459-BLM
Gilver Martinez-Juanta Age: 39
SUMMARY OF CHARGES
False Attestation (Felony), in violation of Title 18, U.S.C. § 1546(b)(3); Maximum Penalty: 10 years in prison; $250,000 fine.
Case Number 25mj1460-BLM
Miguel Angel Leal-Sanchez Age:39
SUMMARY OF CHARGES
False Attestation (Felony), in violation of Title 18, U.S.C. § 1546(b)(3); Maximum Penalty: 10 years in prison; $250,000 fine.
Case Number 25mj1461-BLM
Fernando Casas-Gamboa Age: 21
SUMMARY OF CHARGES
False Attestation (Felony), in violation of Title 18, U.S.C. § 1546(b)(3); Maximum Penalty: 10 years in prison; $250,000 fine.
INVESTIGATING AGENCIES
Homeland Security Investigations
Naval Criminal Investigative Service
U.S. Department of Homeland Security, Office of Inspector General
General Services Administration, Office of Inspector General
Small Business Administration, Office of Inspector General
U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations
Drug Enforcement Administration
Bureau Alcohol, Tobacco, Firearm,s and Explosives
U.S. Border Patrol
U.S. Customs and Border Protection
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).
Former EDD Employee Sentenced to 66 Months for Mail Fraud and Bribery SchemeRead the Press Release
SAN DIEGO – Regina Brice, a former employee of the California Employment Development Department, was sentenced in federal court today to 66 months in prison for using her position to file $858,339 in fraudulent unemployment claims, effectively stealing money that was intended to give economic relief to people impacted by the pandemic.
According to court documents, Brice was employed by the EDD since 2010. During the pandemic, she was responsible for processing COVID-related unemployment claims. However, between July 2020 and May 2021, Brice exploited her employee access at EDD to manipulate and file fraudulent unemployment claims for her co-conspirators in exchange for thousands of dollars in bribes. These co-conspirators included California prison inmates whom she instructed on how to bypass the system’s fraud checking software to obtain the money.
“This defendant turned her back on the oath of her office and those she was supposed to help during a once-in-a-century pandemic,” said Acting U.S. Attorney Andrew Haden. “Today she is being held accountable for her greed.”
“Former California Employment Development Department (EDD) Employment Program Representative Regina Brice filed fraudulent and manipulated unemployment insurance (UI) claims in exchange for kickbacks, diverting vital taxpayer resources away from unemployed American workers who lost their jobs due to the COVID-19 pandemic,” said Quentin Heiden, Special Agent-in-Charge, Western Region, U.S. Department of Labor, Office of Inspector General (DOL-OIG). “Brice violated the public trust afforded to her as an EDD employee to enrich herself and others. We will continue to work with our law enforcement partners to safeguard the integrity of the UI program for those who need it. This sentencing demonstrates DOL-OIG’s commitment to root out waste, fraud, and abuse in DOL programs.”
DHS Inspector General Joseph V. Cuffari, Ph.D., said, “Regina Brice defrauded government programs meant to help Americans at the height of the COVID-19 pandemic. DHS OIG will continue to prioritize pandemic-related fraud investigations and work with our law enforcement partners to bring perpetrators to justice. I appreciate the continued partnership between DHS OIG and the Department of Labor OIG in bringing this case to a close.”
“Today’s sentencing marks a significant victory for justice and accountability,” said Matt Shields, Inspector in Charge of the U.S. Postal Inspection Service in Los Angeles Division. “The exploitation of vulnerable individuals’ personal information for nearly a million dollars in fraudulent gains, facilitated by an EDD employee’s corruption, is a betrayal of public trust. I commend the relentless efforts of our inspectors and collaboration with the Department of Labor OIG and Department of Homeland Security OIG in bringing this case to a close and ensuring that such misconduct results in severe consequences.”
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
This case is being prosecuted by Assistant U.S. Attorney Ronald Sou.
DEFENDANT Case Number 23-CR-2082-RBM
Regina Brice Age: 43 San Diego, CA
SUMMARY OF CHARGES
Mail Fraud – Title 18, U.S.C., Section 1341
Maximum penalty: Twenty years in prison and $250,000 fine
INVESTIGATING AGENCIES
U.S. Department of Labor – Office of the Inspector General
Department of Homeland Security – Office of the Inspector General
United States Postal Inspector Service
California Employment Development Department – Investigation Division
Jury Convicts San Diego Attorney of Securities FraudRead the Press Release
SAN DIEGO – After a weeklong trial, San Diego-based securities attorney Andrew Coldicutt was convicted by a federal jury today on all 17 counts of securities fraud, false securities registration statements, and wire fraud in connection with two pump-and-dump market-manipulation schemes.
The jury deliberated for less than four hours and determined that Coldicutt used his expertise as an experienced securities lawyer to help clients – who were actually undercover FBI agents – create companies, take them public, release false information about the companies, manipulate the stock for a windfall and conceal their affiliation with those companies.
In the first scheme, Coldicutt worked with others from 2017 through 2019 to prepare and execute a pump-and-dump stock fraud scheme. Coldicutt created a business plan for a fake backyard fruit harvesting company. He prepared and filed securities registration statements with the U.S. Securities and Exchange Commission for an initial public offering of the company’s stock. The securities registration statements contained false and misleading information about the company, its business plans, and the people who owned and controlled the company.
In the second scheme, in 2019, one of Coldicutt’s corporate clients needed to raise money fast. Rather than raise money legally, Coldicutt presented the undercover FBI agents with another pump-and-dump stock fraud scheme. Coldicutt wrote a false attorney opinion letter to facilitate the sale of stock for the pump-and-dump scheme.
During the trial, the government presented multiple recordings connecting Coldicutt to the crimes, including inventing the business plan in the middle of a meeting with undercover FBI agents. Coldicutt was also recorded accepting $2,500 in cash as an advance on successfully completing the pump-and-dump scheme. Jurors were also presented with encrypted messages where Coldicutt coordinated the plans for the pump-and-dump with a cooperating source.
According to testimony during the trial, the expected profit of the first pump-and-dump scheme was approximately $4.85 million, and Coldicutt’s share would be about $240,000. Since Coldicutt was actually working with undercover FBI agents and sources gathering evidence against him, no investors were injured.
A “pump and dump” scheme is a type of fraud where manipulators gain control over a company’s stock and boost a company's stock price by spreading false information or trading in a way that creates fake demand. Once the stock price is inflated, they sell off their shares (the “dump”), causing the price to drop and leaving investors with losses.
“Securities attorneys and other professionals in the securities industry hold a critical position of trust and responsibility,” said Acting U.S. Attorney Andrew R. Haden. “When these individuals misuse their legal credentials to commit fraud, it is innocent investors who often bear the brunt of the harm. Thanks to the diligent work of FBI investigators and our prosecution team, we were able to expose the wrongdoing and deliver justice without any investors suffering financial loss. This outcome reflects the extraordinary efforts of all involved.”
“Andrew Coldicutt engaged in a deliberate, unlawful and years long securities fraud scheme,” said FBI San Diego Special Agent in Charge Stacey Moy. “Attorneys are held to a higher standard of conduct and this case proves when an individual in a position of trust abuses their authority for unjust personal gain, the FBI will hold them accountable.”
The defendant is scheduled to be sentenced on July 11, 2025, before U.S. District Judge Jinsook Ohta.
The Securities and Exchange Commission has also taken civil action against Coldicutt.
DEFENDANT Case Number 22cr1881
Andrew Coldicutt Age: 44 San Diego, California
SUMMARY OF CHARGES
Title 15, U.S.C., Sec. 77q, 77x – Securities Fraud
Maximum Penalty: Twenty years in prison
Title 15, U.S.C., Sec. 77g, 77x – False Securities Registration Statements
Maximum Penalty: Twenty years in prison
Title 18, U.S.C., Sec. 1343 – Wire Fraud
Maximum Penalty: Twenty years in prison
INVESTIGATING AGENCY
Federal Bureau of Investigation
U.S. Attorney’s Office Filed More than 90 Border-Related Cases This WeekRead the Press Release
SAN DIEGO – Federal prosecutors in the Southern District of California filed more than 90 border-related cases this week, including charges of transportation of illegal aliens, bringing in aliens for financial gain, reentering the U.S. after deportation, deported alien found in the United States, and importation of controlled substances.
The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).
In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.
A sample of border-related arrests this week, includes:
- Mexican nationals Eleazar Mozqueda Simental and Manuel Antonio Mozqueda Simental were arrested and charged on March 20, 2025, in connection with a maritime smuggling incident. They were accused of illegally transporting 14 undocumented immigrants from Mexico, Vietnam and China – all of whom were forced to wear large black trash bags over their heads and bodies during the four-hour trip. They were brought into the United States on a panga boat traveling at high speed across rough seas. According to interviews with the undocumented immigrants on the boat, at one point, the panga caught air, broke apart and capsized, sending terrified passengers into the water. The passengers, including a deaf/mute woman, were rescued.
- Mexican national Osvaldo Reyes-Virgen was arrested on March 17, 2025, by San Diego- based U.S. Border Patrol agents and charged after he was found in the United States hiding behind brush near Imperial Beach after agents observed a jet ski traveling north. Reyes-Virgen was previously deported on March 6, 2025, after entering the United States illegally.
- On March 17, 2025, Sarah Beth Schatz, a United States citizen, was arrested and charged with alien smuggling after she was caught attempting to smuggle two citizens of China into the United States in the trunk of the vehicle she was driving. The two Chinese citizens she was arrested with admitted that they are citizens of China without lawful documents allowing them to enter the United States and that they were going to pay $30,000 and $15,000 if successfully smuggled into the United States.
- Joshua Nicolas Sanchez Lopez, a Mexican citizen, was arrested on March 15, 2025, when he attempted to cross into the U.S. from Mexico at the Otay Mesa Port of Entry on drug importation charges. According to a federal complaint, he was the driver and registered owner of a vehicle where Customs and Border Protection officials found 108 packages consisting of over 100 pounds of methamphetamine, 22 pounds of fentanyl, and more than four pounds of heroin hidden in the doors, quarters panels, and seats of his vehicle.
- On March 16, 2025, Baudelio Escalante-Orozco, a citizen of Mexico, was arrested after he was found by San Diego-based U.S. Border Patrol Agents attempting to hide in brush seven miles north of the U.S./Mexico International Boundary Line and charged with being a deported alien found in the United States. He is currently on probation in the District of Oregon for the same crime.
Federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.
The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.