Southern District of California
Press releases recorded for this federal judicial district.
Jury Convicts San Diego Man in $35 Million Dollar Securities Fraud and COVID-Relief Fraud SchemeRead the Press Release
SAN DIEGO – After an eight-day trial, a federal jury has convicted Denny Thakorbhai Bhakta on all 25 counts of securities fraud, bank fraud and money laundering in connection with a $35 million dollar investment fraud scheme and COVID-relief fraud scheme.
Bhakta’s uncle, who was swindled out of $4.5 million, testified during the trial that he came to the U.S. as an immigrant, with only a suitcase and $8 in his pocket, and because of the defendant, he “lost everything he had worked for in 57 years in America. Everything.” Bhatka’s fraud scheme targeting numerous victims, including a childhood friend who lost hundreds of thousands of dollars; a friend of his family who lost $1.6 million; a high school classmate and her father who together lost more than $800,000; a cousin who lost $40,000; and an 88-year-old investor who was defrauded out of $50,000.
“This sophisticated scheme unraveled after several victims came forward and exposed the fraud,” said U.S. Attorney Tara McGrath. “Many of the victims are people who represent the best of us—hard working, honest Americans who made investments based on a trusted relationship. The jury’s verdict is a resounding affirmation that justice will prevail over deceit.”
The evidence at trial showed Bhakta solicited investors in his companies Fusion Hotel Management LLC and Fusion Hospitality Corporation (collectively “Fusion”). Between at least 2016 and up to 2021, Bhakta falsely told investors that Fusion routinely acquired discounted blocks of hotel rooms from Hilton, which Fusion then sold to United Airlines and other companies at a higher price for a significant profit. To support these lies, Bhakta provided fabricated bank statements, fake contracts, and profit and loss statements purporting to show millions in revenue and profit. Instead of buying blocks of hotel rooms with investors’ funds, however, Bhakta used the money he obtained from investors for gambling, to make Ponzi-style payments to other investors, and to pay for Bhakta’s personal expenses, including a Mercedez-Benz S-Class and a Porsche 911 Turbo S.
During the trial, prosecutors introduced evidence that Bhakta was flown into Las Vegas on the Wynn private jet and in just one 7.5-hour gambling binge in 2018, Bhakta lost $1 million at the Wynn Las Vegas. Through casino records, prosecutors demonstrated how Bhakta repeatedly took investors’ money straight to casinos and gambled (and lost) millions of dollars of investor money.
As prosecutors argued at trial, in 2020, Bhakta doubled down on the fraud. Through the Paycheck Protection Program (“PPP”), Bhakta applied for 18 separate PPP loans totaling $4.4 million. To fraudulently obtain the PPP loans, and unbeknownst to his victim/investors, Bhakta created fake W-2 and other IRS documents and used the names and personally identifying information of his victim-investors to claim them as employees of Fusion and other entities under Bhakta’s control. Bhakta used the more than $4.4 million he received in PPP loans to keep the Ponzi scheme going and to continue gambling and losing money at casinos.
Bhakta was remanded into custody after the jury’s verdict. A sentencing hearing is set for January 25, 2025, at 9:00 a.m. in Courtroom 4D.
This case is being prosecuted by Assistant U.S. Attorneys Kevin Mokhtari and Eric Olah.
The Securities and Exchange Commission has also take civil action against the defendant.
DEFENDANTS Case Number 21cr3352-JLS
Denny Thakorbhai Bhakta Age: 42 San Diego, CA
SUMMARY OF CHARGES
Securities Fraud—Title 15, U.S.C. §§ 78j(b), 78ff; Title 17, C.F.R. § 240.10b-5
Maximum penalty: Twenty years in prison and $5 million fine
Bank Fraud—Title 18, U.S.C., Section 1344(2)
Maximum penalty: Thirty years in prison and $1 million fine
Money Laundering– Title 18, U.S.C., Section 1957
Maximum penalty: Ten years in prison and fine twice the amount of the criminally derived property involved in the transaction
INVESTIGATING AGENCIES
Federal Bureau of Investigation
U.S. Securities and Exchange Commission, Los Angeles Regional Office
El Centro Man Admits to Threatening a DEA AgentRead the Press Release
SAN DIEGO – Jacob Enriquez of El Centro, California pleaded guilty in federal court today, admitting that he sent a threatening email directed at a U.S. Drug Enforcement Administration agent and his family.
Enriquez was charged on June 6, 2024. He pleaded guilty to Interstate Threatening Communication for sending a threatening and disturbing email directed at a DEA Agent. The profanity-laden email, which was sent to an email account belonging to Emergency Medical Services Agency in Imperial County, threatened to torture and kill the DEA agent and the agent’s children and made it clear that Enriquez knew where the agent lived.
Enriquez admitted that he sent this email knowing that it would be viewed as threats of violence against the DEA agent and his family.
Enriquez also admitted to sending threatening emails to the El Centro Police Chief and a doctor’s office in El Centro.
“Words have consequences,” said U.S. Attorney Tara McGrath. “And the consequences of threatening others with violence is a felony conviction.”
This case is being prosecuted by Assistant U.S. Attorneys Andrew Sherwood and Joseph Orabona.
The defendant is scheduled to be sentenced on January 31, 2025.
DEFENDANT Case Number 24cr1330-CAB
Jacob Enriquez Age: 43 El Centro, CA
SUMMARY OF CHARGES
Interstate Threatening Communication – Title 18, U.S.C., Section 875(c)
Maximum penalty: Five years in prison, with a mandatory minimum of 15 years in prison and a $250,000 fine
INVESTIGATING AGENCY
Federal Bureau of Investigation
Defense Contractor, Former Executive Indicted for Bribing Government EmployeeRead the Press Release
SAN DIEGO – A federal grand jury has returned an indictment charging Cask Technologies, LLC and former company executive Mark Larsen with bribing a government employee to win lucrative government contracts.
According to court records, Larsen and his subordinates at Cask gave former Naval Information Warfare Center employee James Soriano various things of value, including expensive meals, golf outings, and full-time jobs for Soriano’s close family friend and immediate family member. At the time of the conspiracy, Larsen was the director, and later the managing director, vice president, and executive vice president of Cask with offices in San Diego and Stafford, Virginia.
In return, Soriano took official action to benefit Cask, such as steering non-competitive small business contracts to Cask and its “family” of companies; allowing Larsen and other Cask employees to draft procurement documents for various contracting efforts, including competitive procurements; and allowing Larsen and others to “ghost write” emails, official government correspondence, and performance evaluations for Soriano’s signature, all to benefit Cask and others in its “family” of companies.
Soriano also agreed in an email exchange to “create & award” a $50 million supposedly competitive contract for services to Cask. Soriano then allowed Cask to draft the contract requirements and the price the government was expected to pay, and took other actions to ensure that Cask was awarded the “competitive” contract.
To conceal their activities, Larsen, Cask and Soriano failed to disclose organizational conflicts of interest in relation to their contracting efforts and that Cask was affiliated to other companies in its “family” of companies, including two Native Hawaiian 8(a) companies that were subcontracting millions of dollars of work on 8(a) contracts to Cask.
Soriano has already pleaded guilty to multiple bribery schemes, including facts related to his relationship with Larsen and Cask. He is scheduled to be sentenced in May 2025.
“Defense contracts support our military, and as such play an important role in keeping us all safe,” said U.S. Attorney Tara K. McGrath. “Allowing bribery and corruption to dictate who obtains those important contracts undermines the system and dishonors our defense operations.”
“This newest indictment is another constructive step toward accountability in this ongoing multi-year investigation,” said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Western Field Office. “Mr. Larsen and Cask Technologies are accused of feeding their own greed by knowingly corrupting the government’s acquisition process and some government officials at the expense of our nation’s warfighters and taxpayers.”
“The allegations in this case highlight the serious repercussions of undermining the integrity of the Department of the Navy’s procurement process. By prioritizing personal gain over fair competition, such actions can compromise the readiness and, potentially, the safety of our warfighters,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “We, alongside our investigative partners, are committed to exposing unlawful activity and restoring public trust in the systems designed to protect our nation’s security.”
“This case demonstrates our commitment to working with our law enforcement partners to root out fraud and corruption in government contracting,” said Weston King, SBA OIG Western Region Special Agent in Charge. “These defendants are accused of working together to exploit the 8(a) program, actions that would defraud the government but also compromise the integrity of the program designed to uplift deserving entrepreneurs. I would like to thank the U.S. Attorney’s Office and law enforcement partners for their continued pursuit of justice and holding accountable those who engage in fraudulent schemes.”
“This indictment demonstrates IRS CI’s commitment to leaving no stone unturned when we investigate DOD contract fraud,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Those who undermine the DOD contracting process put our warfighters at risk, and we will not rest on a case until we find all complicit parties and the evidence necessary to bring them to court.”
This case is being prosecuted by Assistant U.S. Attorneys Patrick Swan and Katherine McGrath.
DEFENDANTS Case Number 24cr2111-TWR
Mark Larsen Age: 46 San Diego, CA
Cask Technologies, LLC Stafford, VA
SUMMARY OF CHARGES
Conspiracy to Commit Bribery - Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison; $250,000 fine
Bribery – Title 18, U.S.C., Section 201
Maximum penalty: Fifteen years in prison; $250,000 fine for an individual or $500,000 for an organization, or three times the monetary equivalent of the thing of value, whichever is greater.
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Small Business Administration – Office of Inspector General
Internal Revenue Service Criminal Investigation
Department of Health and Human Services – Office of Inspector General
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098.
Federal Jury Convicts Siblings of Fraud; Defendants Made Tens of Millions of Dollars from Lying to Manufacturers in Years-Long SchemeRead the Press Release
SAN DIEGO – Adriana Camberos (formerly Adriana Shayota) and Andres Camberos, sister and brother, were convicted by a federal jury of multiple fraud charges on October 25, 2024.
Their illegal scheme involved lying to manufacturers to sell wholesale groceries and other goods at steep discounts by promising the goods would be sold in Mexico, or to prisons or rehabilitation facilities. Instead, the defendants sold the products at higher prices to U.S. distributors, for the U.S. market.
Wire fraud charges arose from the numerous wire transfers, as well as other interstate communications, the defendants made as they bought products from the manufacturers, transferred money among their own companies to facilitate the scheme, and then re-sold the products at higher prices to U.S. customers.
Following an 11-day trial, the jury found the defendants guilty of eight of 11 counts that went to the jury. Adriana and Andres Camberos were both found guilty of conspiracy to commit wire and mail fraud and seven wire fraud counts, and not guilty of three mail fraud counts.
According to evidence presented at trial, the defendants owned and controlled three businesses: Tradeway International, Inc., doing business as Baja Exporting (owned by Adriana Camberos); Specialty Foods International, Inc., doing business as Promix Co., Prison Food Depot, Rehab Food Depot and Specialty Foods International (owned by Andres Camberos); and Baja Foodservice S.R.L. de C.V. (95% owned by Andres Camberos and managed by Adriana Camberos). Specialty Foods International and Baja Exporting shared a warehouse and office space in San Diego. Baja Foodservice had a warehouse in Tijuana. All three operated together, as sister companies.
Baja Exporting claimed to be an exporter of grocery items and consumer goods to Baja California, Mexico. Similarly, Specialty Foods International, claimed to be a regional distributor of groceries and other goods to retailers in Baja California, Mexico, and to correctional facilities and rehabilitation and wellness facilities within the United States. Baja Foodservice likewise claimed to be a regional distributor in Baja California, Mexico.
The defendants used the three companies—especially Baja Foodservice—to tell manufacturers that they would sell the manufacturers’ products in Mexico, and based on that, they received significant discounts for purported sales, distribution, and exporting to the Baja California market. The defendants also sought discounted goods for Specialty Foods International, d/b/a Prison Food Depot and Rehab Food Depot, based on the claim that they sold products to prisons and rehab facilities.
But the defendants lied. In a years-long scheme, they used their three companies to get those lower prices from manufacturers and resell the products at higher prices to U.S. customers—often the same distributors the victim companies were already selling their products to. Between 2019 and September 2023 alone, Baja Exporting and Specialty Foods International sold hundreds of millions of dollars of products to U.S. distributors; less than a tenth of one percent of their sales were to any Mexican retailer or distributor, and they did no business with prisons or rehab centers.
The defendants took other numerous steps to conceal and perpetuate their fraud. For example, the defendants removed GPS tracking devices from manufacturers’ shipments; removed Spanish-language labels or packaging intended for the Mexican market; obtained Mexican customs documents to try to prove to manufacturers that products were being exported; arranged “market visits” in Tijuana, taking manufacturers’ representatives to various stores in Baja California where they placed the manufacturers’ products—often alongside models who were hired by the defendants’ companies and associates—to create the appearance the products were being sold as promised; had a fake “office” in Mexico City to meet with manufacturers, in an effort to make the companies think the defendants did substantial business in Mexico; and otherwise doubled down on their lies when the victim companies suspected the defendants were diverting their products and defrauding them.
Baja Exporting and Specialty Foods International made over $58 million in gross profits between January 2019 and September 2023. As owners, the defendants made millions each. In the same time period, Adriana Camberos took in over $12 million from Baja Exporting, and Andres Camberos paid himself over $14 million from Specialty Foods International. This caused manufacturers to lose tens of millions of dollars—money they would have made in the normal course of selling to U.S. distributors, but for the defendants’ lies.
With the money they made from the scheme, Adriana and Andres Camberos made extensive luxury purchases and investments. They bought or financed a Ferrari F12 Berlinetta, a Lamborghini Huracan, and multiple Range Rovers; purchased multiple homes in the San Diego area; purchased a condominium at the beach in Coronado; and put the money in multiple investment accounts, life insurance policies, a cryptocurrency account, and other assets. These and other items are subject to forfeiture.
“These defendants’ deception led to millions in illegal profits, but the gain was fleeting,” said U.S. Attorney Tara McGrath. “When this elaborate scheme unraveled, justice prevailed.”
“The Camberos siblings built a multimillion-dollar empire solely on fraud,” said FBI San Diego Special Agent in Charge Stacey Moy. “This conviction should send a clear message that fraud — no matter the scale — will be thoroughly investigated and those found guilty of perpetrating such schemes will be brought to justice.”
The defendants are scheduled to be sentenced on March 3, 2025, before U.S. District Judge Cynthia Bashant.
This case is being prosecuted by Assistant U.S. Attorneys Joshua Mellor, Peter Horn and Jordan Arakawa.
DEFENDANTS Case Number 23-CR-1916-BAS
Adriana Isabel Camberos (aka Adriana Shayota) Age: 54 San Diego, CA
Andres Enrique Camberos Age: 45 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Commit Mail and Wire Fraud – Title 18, U.S.C., Section 1349
Maximum Penalty: Twenty years in prison
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum Penalty: Twenty years in prison
INVESTIGATING AGENCY
Federal Bureau of Investigation
Naval Captain Sentenced to Prison for Cyberstalking and Identity TheftRead the Press Release
SAN DIEGO – U.S. Navy Captain Theodore E. Essenfeld was sentenced in federal court today to 37 months in prison for cyberstalking and stealing the identity of his former girlfriend.
“Today’s sentencing marks the end of this perpetrator’s reign of cyber terror,” said U.S. Attorney Tara McGrath. “Cyberstalking is not just a nuisance or harmless prank; it’s a serious crime with devastating consequences. The torment this victim endured has profoundly impacted her life, and those who think they can hide behind a screen should know that justice will prevail.
During the hearing, U.S. District Judge Robert S. Huie acknowledged the ordeal of the victim, saying, “I commend her courage and strength for coming forward.”
Essenfeld was convicted by a federal jury in June. During the four-day trial, the United States presented evidence that Essenfeld created imposter Facebook, LinkedIn, email, and cellular phone accounts using the woman’s name, biographical information, and photographs without her knowledge or consent. Posing as the victim, Essenfeld posted erotic and sexually explicit content to the Facebook account, as well as graphic media files or “memes,” many of which were sexually demeaning to women.
In addition to the materials posted on the imposter Facebook account, the United States presented evidence that Essenfeld joined Facebook dating groups using the imposter account and interacted with numerous other Facebook users while impersonating the victim, including “liking” other users’ posts, sending messages with kissy-face emojis, and sending group messages. Essenfeld linked the imposter Facebook and LinkedIn accounts to the victim’s prospective employer by following and engaging with the prospective employer’s social media accounts. He also linked the fake accounts to other aspects of the victim’s life by “liking” posts by her former co-workers, her university, the U.S. Navy, and fitness studios she previously attended.
Over 1,200 Facebook users ultimately became “friends” with the imposter account, including the victims’ former colleagues. The evidence showed that the victim reported the imposter account to Facebook more than 400 times, but Facebook refused to take down the account because it appeared more authentic than the victim’s actual account due to the volume of images and level of Essenfeld’s engagement on the platform.
Even after Essenfeld became aware of the investigation, and he was arrested and released on bond, he continued his cybercrime spree by creating new “fan club” pages on Wikipedia and WikiAlpha, and “fan club” accounts on Instagram, Facebook, and YouTube that presented as if they were operated by a “fan” of the victim. Essenfeld used these fan club accounts to continue to post images and content about the victim. Prior to trial, U.S. District Judge Robert Huie ordered that bond be revoked and Essenfeld be taken into custody based on the fan club accounts. At sentencing, Judge Huie found that Essenfeld should be held accountable for the fan club accounts and considered them as relevant conduct for Essenfeld’s sentencing.
“Mr. Essenfeld betrayed his oath to the Navy and has been held to account for his calculated and cruel campaign to stalk, harass, and intimidate his victim,” said Special Agent in Charge Nicholas Carter of the NCIS Southwest Field Office. “Cyberstalking is a felony-level crime that has no place within the ranks and we remain committed to exposing those who torment their victims online.”
This case is being prosecuted by Assistant U.S. Attorneys Sabrina Feve and Michael A. Deshong.
DEFENDANT Case Number 23cr0177-RSH
Theodore E. Essenfeld Age: 53 Chula Vista, CA
SUMMARY OF CHARGES
Count 1: Cyberstalking – Title 18, U.S.C., Section 2261A(2)(B)
Maximum penalty: Five years in prison and $250,000 fine
Count 2: Identity Theft – Title 18, U.S.C., Section 1028(a)(7)
Maximum penalty: Fifteen years in prison and $250,000 fine
INVESTIGATING AGENCY
Naval Criminal Investigative Service (NCIS)
Customs and Border Protection Officer Sentenced for Receiving Bribes to Allow Drug-Laden Vehicles and Unauthorized Immigrants to Enter the U.S.Read the Press Release
SAN DIEGO – Former U.S. Customs and Border Protection Officer Leonard Darnell George was sentenced in federal court today to 23 years in prison for accepting bribes to allow unauthorized migrants and vehicles containing methamphetamine and other illicit drugs to pass through the border into the U.S.
“What’s important to remember about the story of Leonard George is that his corruption was discovered and defeated.” said U.S. Attorney Tara McGrath. “Our commitment to the integrity of the badge brought justice to a corrupt officer in this case who will spend decades behind bars.”
“Public corruption as in this case is the betrayal of trust that erodes the foundation of the very principals of law enforcement and undermines the public’s perception of those held to a higher standard,” said Shawn Gibson, special agent in charge for HSI San Diego. “Today’s sentencing is a result of HSI’s commitment to investigating transnational criminal organizations and holding all individuals that aid these criminals accountable for their actions. The success of this multiagency investigation is due to everyone’s commitment of honor and integrity.”
“Mr. George should have used his position of authority and trust to protect the United States; however, he used it for his own financial gain,” said FBI San Diego Special Agent in Charge Stacey Moy. “The entire law enforcement profession is tarnished when an officer betrays the oath to protect and serve. The FBI will always vigorously and relentlessly investigate anyone who violates that sacred oath.”
“CBP does not tolerate misconduct within its ranks,” said Special Agent in Charge Elizabeth Cervantes of CBP’s Office of Professional Responsibility, San Diego Field Office. “OPR’s efforts in this case and this latest court decision are a testament to CBP’s commitment to preserving the honor of its overwhelmingly professional workforce, and to its core values of Vigilance, Integrity, and Service to country.”
Department of Homeland Security Inspector General Joseph V. Cuffari, Ph.D., said, “Today’s sentencing sends a clear message that federal employees who violate the law will be held accountable. DHS Office of Inspector General is grateful for our continued partnership with our law enforcement partners as we fight corruption along the Southern Border.”
During the trial, several witnesses testified that George agreed to allow drug-laden vehicles to enter the U.S. through his lane in late 2021. George would notify members of a drug trafficking organization when he was at work, what lane he was on, and that they had one hour to reach his lane. However, in February 2022, after an alert placed by law enforcement agents on a suspected drug smuggling vehicle was flagged entering George’s Lane, George was forced to send the vehicle to secondary inspection, later revealing approximately 222 pounds of methamphetamine.
Undeterred, George allowed a second drug-laden vehicle affiliated with the drug trafficking organization and traveling directly behind the flagged vehicle to enter the U.S. with over 200 pounds of drugs. Text messages sent by George the following day reveal he received approximately $13,000 for the vehicle he allowed to enter the U.S. On the same day he received his bribe payment, George purchased a 2020 Cadillac CT5 for an associate of the drug trafficking organization as a gift. George delivered the Cadillac CT5 to the associate in Ensenada on Valentine’s Day.
Over the course of six months, George continued to allow vehicles containing undocumented individuals to enter the U.S. through his lane. George repeatedly omitted passengers and the true names of drivers coming through his lane, instead entering the names of others to conceal his criminal activities. Law enforcement agents and prosecutors identified approximately 19 crossings associated with the criminal organizations during the six-month time period. Text messages confirmed George agreed to allow vehicles through his lane for $17,000 per vehicle, $34,000 for two vehicles, $51,000 for three vehicles, or $65,000 for four vehicles. One text message confirmed that George received $68,000 after he allowed four vehicles from one organization to enter his lane in June 2022.
Testimony from a witness confirmed that George purchased vehicles, motorcycles, and jewelry with the proceeds of his illicit activities. Additionally, on George’s days off, he travelled to Tijuana to visit Hong Kong Gentlemen’s Club where he spent approximately $5,000 per trip. He would stand on the second level of the club and throw cash over the balcony to the dancers below, “showering” them with money. He would also buy bottles of alcohol, and occasionally gifts, for dancers.
The extent of George’s relationship with traffickers revealed itself when prosecutors admitted a photograph of one of George’s trafficking associates taking a selfie in George’s CBP uniform jacket.
The case was tried and prosecuted by Assistant U.S. Attorneys Bianca Calderon-Peñaloza, Brandon J. Kimura and Michael G. Wheat.
DEFENDANT Case Number 23CR1291
Leonard Darnell George Age: 42 San Diego
SUMMARY OF CHARGES
Receiving Bribe by Public Official – Title 18, U.S.C., Section 201
Maximum penalty: Fifteen years in prison
Conspiracy to Import Controlled Substances – Title 21 U.S.C., Sections 952, 960, 963
Maximum penalty: Life in prison with a 10-year mandatory minimum
Bringing in Certain Aliens for Financial Gain – Title 18 U.S.C., Section 371, Title 8 U.S.C., Section 1324(a)(2)(B)(ii)
Maximum Penalty: Ten years in prison
Bringing in Certain Aliens for Financial Gain – Title 18 U.S.C., Section 371, Title 8 U.S.C., Section 1324(a)(2)(B)(ii)
Maximum Penalty: Ten years in prison
INVESTIGATING AGENCIES
Federal Bureau of Investigation (FBI)
Department of Homeland Security – Office of Inspector General (DHS OIG)
Homeland Security Investigations (HSI)
Customs and Border Protection – Office of Professional Responsibility (CBP OPR)
Alien Smuggler Sentenced to Prison for Role in Fatal Smuggling EventRead the Press Release
SAN DIEGO – Alberto Ubaldo Quintero-Rivas of Mexicali, Mexico, was sentenced in federal court today to 36 months in prison for smuggling unauthorized migrants into the United States in an event that lead to the death of one of the migrants.
According to his plea agreement, Quintero-Rivas brought two migrants into the United States near the Andrade Port of Entry – the easternmost border crossing on the California-Mexico border - on February 22, 2024. Quintero-Rivas guided the two migrants over the international boundary fence between the United States and Mexico, which stands at more than 30 feet tall in that area. While scaling the fence, one of the migrants, a 51-year-old man, fell. The migrant suffered a head injury and died from his injuries.
Border Patrol agents found Quintero-Rivas and the other migrant he had guided into the United States at a nearby RV park. An agent traveled to the nearby border wall to find out where the pair had entered the United States. It was there that the agent found the body of the deceased man and called for emergency medical services. EMS arrived on the scene and declared the man deceased.
Quintero-Rivas initially denied knowing the fallen man, but agents compared his shoeprints to prints found alongside the man’s body and discovered that they matched. The other migrant Quintero-Rivas smuggled told agents that she saw the man fall from the fence. She wanted to stay and help him, but Quintero-Rivas told her that he was in charge and instructed her to leave the fallen man and follow him.
“This tragic death serves as a haunting reminder that heartless smugglers would not – and in this case did not - hesitate to leave a man to die,” said U.S. Attorney Tara McGrath. “As we seek justice for those lost, we remind anyone contemplating a similar journey that smugglers consider human lives simply as a transaction. Don’t trust your life to a smuggler.”
“Illegally crossing the border into the United States is a dangerous business, and callous smugglers have no value for human life,” said Yuma Sector’s Acting Chief Patrol Agent Dustin W. Caudle. “We are glad to see Alberto Ubaldo Quintero-Rivas brought to justice for his role in the death of this migrant. We also hope this acts as a reminder that crossing the border at any point other than a port of entry can have deadly consequences. It is not worth the risk.”
This case is being prosecuted by Assistant U.S. Attorney David Fawcett.
DEFENDANT Case Number 24cr0600-RBM
Alberto Ubaldo Quintero-Rivas Age: 37 Mexicali, Mexico
SUMMARY OF CHARGES
Bringing In Aliens Resulting in Death – Title 8, U.S.C., Section 1324(a)(1)(A)(i) & (B)(iv)
Maximum penalty: Death or Life in Prison; $250,000 fine
INVESTIGATING AGENCIES
United States Border Patrol
Chula Vista Man Admits Defrauding Investors of More than $4 MillionRead the Press Release
SAN DIEGO – Chula Vista resident Paolo Roberto Flores pleaded guilty in federal court today, admitting he defrauded investors of more than $4 million through lies and deception.
According to his plea agreement, Flores made false statements about the success of his prior investments and promised to do the same for new investors. He agreed to invest their funds in cryptocurrency and take 20 percent of any profitable trades. He also told potential investors that he had effective risk mitigation measures in place to limit potential losses.
Flores sent frequent text messages to investors, purporting to document profits resulting from his cryptocurrency trading. Based on Flores’ claim of consistent profits, some clients decided to increase their investments.
When his investments started declining consistently, Flores took multiple steps to conceal his losses from investors. He doctored account statements to falsely show profits that did not exist. For example, on July 8, 2022, Flores sent a screenshot to investors that purported to be an “Assets Overview” page from trading platform BYBIT. He had doctored the screenshot to show an overall asset amount of approximately 69.06515482 BTC (or approximately $1,502,431.64 based on the closing price of $21,753.83 for one BTC on July 8, 2022). In reality, the account had a nominal balance.
Later, when investors tried to withdraw funds as Flores had promised, Flores falsely claimed that BYBIT had frozen the account in which investor money had been deposited. He provided a series of apparent screenshots of emails, which he claimed were his communications with BYBIT. Instead, he had secretly created a new account, then initiated a user request through BYBIT to disable the login for the new account claiming, “suspicious account activity.” After BYBIT blocked the account as requested, FLORES logged into the new account to get the error message. He provided the error message, “This account has been banned,” to the investors to support his fraudulent claim that BYBIT had banned the account.
According to court documents, Flores obtained at least $4,781,248 from victim investors because of his false statements and fraudulent documentation. At least 15 people gave amounts from $50,000 to $1.6 million. Flores used the proceeds of his scheme to purchase a 2021 Tesla Model S and a 2022 Land Rover RR, which he boasted about on his Facebook page.
“The U.S. Attorney’s Office is committed to pursuing those who commit fraud for personal gain,” said U.S. Attorney Tara McGrath. “If you believe you have been the victim of a scam or fraud scheme, contact law enforcement for help.”
“Mr. Flores willingly preyed upon investors who trusted him with their money,” said FBI San Diego Special Agent in Charge Stacey Moy. “People should be able to confidently invest their hard-earned money in the way that they choose. If that confidence and trust are exploited by criminals aiming to commit fraud, investors should know that law enforcement will work tirelessly to bring to justice those responsible.”
In addition to the investment fraud, Flores admitted that he attempted to commit mortgage fraud. In July 2023, Flores executed an application to refinance a Veteran’s Administration mortgage with Rocket Mortgage LLC in the amount of $1,086,000 for his residence. In connection with the application, Flores made false statements about his employment status and income, and supported those false claims by submitting fabricated pay stubs to the mortgage lender.
Flores was ordered to appear for sentencing before U.S. District Judge Barry Ted Moskowitz on January 23, 2025, at 1:30 p.m.
If you believe you were a victim of this crime, you may contact the San Diego Field Office at (858) 320-1800, or the Victim Witness Unit of the United States Attorney’s Office at [email protected].
This case is being prosecuted by Assistant U.S. Attorney Valerie H. Chu.
DEFENDANT Case Number 24CR2216-BTM
Paolo Roberto Flores Age: 39 Chula Vista, CA
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison and $250,000 fine
INVESTIGATING AGENCY
Federal Bureau of Investigation
U.S. Attorney’s Office to Oversee Complaints Related to November 2024 General ElectionRead the Press Release
SAN DIEGO – The Department of Justice has an important role in deterring and combating discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.
Assistant U.S. Attorney Seth Askins has been appointed to serve as District Election Officer for the Southern District of California, and in that capacity is responsible for overseeing the district’s handling of Election Day complaints regarding voting rights, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department headquarters in Washington, D.C.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney Tara McGrath. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”
Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).
U.S. Attorney McGrath said: “The right to vote is the cornerstone of American democracy. We all must ensure that those who are entitled to vote can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Askins will be on duty while the polls are open. He can be reached by the public at the following telephone number: (619) 546-6692.”
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (858) 320-1800.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.
U.S. Attorney McGrath urged those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.
Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately, before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.
Half-Brothers Sentenced for Murdering their Sister and her Family, Including Three Children, in their Tijuana HomeRead the Press Release
SAN DIEGO – Half-brothers Christopher Baltezar Hernandez and Victor Armondo Aguilar were sentenced in federal court today to six consecutive life terms and 45 years, respectively, for the premeditated execution of their sister, her three children – ages 9, 8 and 4 – and her significant other in their Tijuana home. The siblings had been involved in a bitter dispute over property prior to the murder.
“I cannot understand how one can point a gun in front of a child’s face and pull the trigger,” U.S. District Judge Linda Lopez told the defendants during the sentencing hearing. She described the murders as “horrific,” “completely incomprehensible,” and “cold, intentional, planned, calculated, and callous.”
Aguilar, of Tijuana, pleaded guilty in October 2023 and Hernandez, of Fresno, California, pleaded guilty in December 2023, each to a single count of conspiring to murder a U.S. citizen in a foreign country and five counts of stalking resulting in death. The half-brothers are U.S. citizens. The sister and her children were also U.S. citizens; the significant other was a Mexican national.
According to their plea agreements, on December 3, 2021, the day of the murders, Hernandez traveled from Fresno to Tijuana through San Diego, armed with an assault rifle, .223 caliber ammunition, and two revolver speed loaders. Hernandez met up with Aguilar in Tijuana, where they acquired a revolver.
The half-brothers, armed with the firearms and wearing dark clothes and gloves, went to the victims’ residence in Tijuana. According to the plea agreements, which identified the victims by their initials, the defendants first shot and killed the sister, J.H., and her eight-year-old daughter, A.M.M., in the kitchen. The significant other, G.M.V., was shot and killed in a bedroom while he attempted to shield the other two children. The bedroom door was forced open and nine-year-old A.M. and four-year-old S.M. were each shot in the head.
“Borders do not shield criminals from justice when Americans are victimized abroad,” said U.S. Attorney Tara McGrath. “These executioners were charged, convicted, and held to account in a U.S. court. The Department of Justice will continue to use every available tool to protect Americans from harm at home and abroad.”
“Jealousy and greed led to one family's devastating loss of five loved ones,” said FBI San Diego Special Agent in Charge Stacey Moy. “Hernandez’s and Aguilar’s well-deserved prison sentences reflect their total disregard for human life. While their imprisonment will never bring back these lives, we hope it offers some peace to the victims’ family. The FBI, alongside our local and international law enforcement partners, remains dedicated to seeking justice and will not hesitate to hold accountable those involved in violent crimes, whether in the United States or abroad.”
While there were likely multiple motivations for the murders, the primary reason was a dispute over the ownership of numerous properties in Mexico. According to court documents, in the months leading up to the murders, the sister retained an attorney to help in the property dispute, which prompted Hernandez to text her: “We already know about the lawyer.” Hernandez asked, “You think you can just fuck us over and nothing will happen?” Hernandez then mentioned J.H.’s attorney’s name and that he had the attorney “in are[sic] hands.” Hernandez continued to say, “Fuck you and all your family” and, “The truth is I’m not fucking around. You thought you were going to make a dumbass out of me but no. You’re not going to have anything.” Hernandez then challenged J.H. to “…try me and see how much you can handle because with me you’re not going to be able to finish it.”
Hernandez had a long history of threats against his sister and her children. In May 2019, J.H. called 911 stating Hernandez was threatening to shoot her and her kids in the head. Hernandez and J.H. had the same parents; Aguilar and J.H. were half-siblings. It’s unclear if J.H. and her significant other were married.
According to the plea agreements, the murders occurred after months of meticulous and obsessive planning and premeditation. Hernandez and Aguilar had researched the victims’ address and the surrounding area online more than 200 times. Hernandez also bought the parts and built a fully functional .223 caliber assault rifle. The week before, Hernandez researched “ar15 jam clearing” and “ar15 room clearing” and watched ten different videos related to tactical firearms training. Hernandez also researched how to build a hidden compartment in his Toyota Corolla and discussed contingency plans with others, among other preparatory steps. The day before the murders, Hernandez bought a pair of revolver speed loaders, and on the day of the murders, Hernandez and Aguilar acquired a revolver in Tijuana, Mexico.
Aguilar searched for and listened to a podcast related to homicide investigations just hours before the murders. Minutes before the murders, Hernandez removed the SIM card from his phone, and returned it about a half-hour after the murders.
Following the murders, Hernandez researched numerous news articles about the killings and searched, “does the fbi investigate murders.” Hernandez and Aguilar also deleted their location and messaging history.
This case is being prosecuted by Assistant U.S. Attorneys Mario Peia, Matthew Brehm and Fred Sheppard.
DEFENDANTS Case Number 22cr778-LL
Christopher Baltezar Hernandez Age: 27 Fresno, CA
Victor Armondo Aguilar Age: 22 Tijuana, MX
SUMMARY OF CHARGES
Conspiracy to Murder – Title 18, U.S.C., Section 1117
Maximum penalty: Life in prison
Stalking Resulting in Death – Title 18, U.S.C., Section 2261A
Maximum penalty: Life in prison
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego County Sheriff’s Department
Del Mar Fairgrounds Agrees to Pay $5.6 Million to Settle Allegations over Pandemic-Related LoanRead the Press Release
SAN DIEGO – The 22nd District Agricultural Association (DAA), which owns and operates the Del Mar Fairgrounds in San Diego County, and Carlene Moore, the chief executive officer of the 22nd DAA, have agreed to pay $5,664,015 to settle allegations that the 22nd DAA was not eligible for the $4,713,700 Paycheck Protection Program loan that it obtained.
The 22nd DAA is governed by a nine-member board, all appointed by the governor of California. The Del Mar Fairgrounds, under the ownership and operation of the 22nd DAA, hosts various public events, including the annual San Diego County Fair and thoroughbred horse racing.
Congress created the Paycheck Protection Program, or PPP, in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to eligible small businesses experiencing economic hardship caused by the COVID-19 pandemic. Although many small businesses were eligible for forgivable PPP loans, some businesses were not. Regulations provide that businesses ineligible for SBA loans include those considered “government-owned.” The United States contends that the 22nd DAA was government-owned and therefore not eligible to receive a PPP loan.
In May 2020, the 22nd DAA obtained a PPP loan in the amount of $4,713,700 based on an application that Carlene Moore, then Deputy General Manager of the 22nd DAA, signed and certified for accuracy of eligibility. The loan was subsequently forgiven based on another application that Ms. Moore also signed and certified for accuracy. The 22nd DAA’s loan and forgiveness of the loan resulted in the United States paying $4,713,700 in loan principal plus $97,890 in fees and interest to the bank that processed the loan.
“These loans were intended to provide critical relief to eligible businesses during a time of global crisis,” said U.S. Attorney Tara McGrath. “This settlement upholds the integrity of the COVID-relief program and holds the DAA accountable for obtaining millions in taxpayer-funded benefits to which they were not entitled.”
SBA’s General Counsel Therese Meers stated, “The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office and the SBA’s Office of Inspector General to pursue recovery from those who obtained essential government program funds they weren’t eligible for.”
This matter was handled by Assistant U.S. Attorney Joseph P. Price Jr.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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
Employee Who Stole More than $430,000 from San Diego Regional Economic Development Corporation SentencedRead the Press Release
SAN DIEGO – Escondido resident Katherine Lu Acquista, the former director of operations and accounting for the San Diego Regional Economic Development Corporation, was sentenced in federal court today to 12 months and 1 day in custody for stealing approximately $433,275.89 from her then-employer. She was also ordered to pay a fine of $50,000.
According to court documents, while employed at the non-profit organization known as EDC, Acquista used her access and authority to put personal expenses on EDC credit cards and pay those expenses using EDC funds. She also directed other employees to issue checks to her from the EDC company bank account. She then caused false entries about these transactions to be made in the EDC’s accounting system to disguise her ongoing theft. In addition, she stole from EDC’s flexible spending and payroll system. All told, she exploited her position of trust to steal more than $430,000 over at least a five-year period, between August 2017 and August 2022.
The EDC is a 501(c)(3) charitable non-profit organization that works to grow San Diego’s economy and regional prosperity. The EDC’s mission is to maximize the region's economic competitiveness and global competitiveness. It is funded by individual and corporate donations, grants and investments from nearly 200 companies, public agencies, and private organizations.
Explaining the impact of her crimes, the Chief Operating Officer of EDC stated, “[San Diego Regional Economic Development Corporation] is a nonprofit organization with a mission to maximize the region's economic prosperity and raise our global competitiveness. Acquista’sactions defied two of our closely held values – accountability and integrity.”
“Members of our community who donate to local non-profits depend on the integrity and stewardship of those entrusted with such funds,” said U.S. Attorney Tara McGrath. “This sentence serves to remind those engaged in crime for profit that whether your victim is the taxpayer, government, or a local non-profit, you will be held accountable.”
“Those who seek to misappropriate non-profit donations are acting contrary to the interest of the public good. The FBI stands ready to investigate those who violate the trust of the donors and diminish the efforts of non-profit organizations such as the San Diego Regional Economic Development Corporation,” said San Diego FBI Special Agent in Charge Stacey Moy.
This case is being prosecuted by Assistant U.S. Attorney Valerie H. Chu. Former Assistant U.S. Attorney Michelle Wasserman assisted in the case.
DEFENDANT Case Number 24CR0765-AJB
Katherine Lu Acquista Age: 47 Escondido, CA
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Twenty years in prison and $250,000 fine
INVESTIGATING AGENCY
Federal Bureau of Investigation
San Diego Man Admits to Sexual Exploitation of 14-Year-Old GirlRead the Press Release
SAN DIEGO – Eric Jin of San Diego pleaded guilty in federal court today, admitting that he persuaded a 14-year-old girl to send him sexually explicit photographs of herself, including an image of her leg where she had carved the defendant’s name into her skin with a knife at his direction.
Jin was indicted on May 15, 2024. He pleaded guilty to Sexual Exploitation of a Minor in connection with his online communications with the girl. For example, according to his plea agreement, Jin demanded that she take sexually graphic pictures of herself without clothing in December 2022 and again in February 2023. The girl did as Jin directed and sent him the photos. It was on the February date that he ordered her to carve his first name into her skin and send him a photo.
Jin also admitted to sending the victim images of other minors engaged in sexually explicit conduct.
“This defendant repeatedly victimized, exploited, and literally scarred a child,” said U.S. Attorney Tara McGrath. “This horrific crime serves as a reminder to keep a very close eye on who kids are talking to online.”
“While all crimes we investigate are deplorable, the sexual exploitation of children is an especially flagitious violation,” said FBI San Diego Acting Special Agent in Charge Houtan Moshrefi. “Let Eric Jin’s guilty plea be a clear message that the FBI and its partners will aggressively pursue people who intend to exploit children in such a despicable manner.”
This case is being prosecuted by Assistant U.S. Attorneys Andrew Sherwood and Katie Grammenidis.
The defendant is scheduled to be sentenced on January 24, 2025.
DEFENDANT Case Number 24cr1071-JO
Eric Jin Age: 30 San Diego, CA
SUMMARY OF CHARGES
Sexual Exploitation of a Minor – Title 18, U.S.C., Section 2251(a) and (e)
Maximum penalty: Thirty years in prison, with a mandatory minimum of 15 years in prison and a $500,000 fine
INVESTIGATING AGENCY
Federal Bureau of Investigation
San Diego Physician and Medical Practice Pay $3.8 Million to Resolve False Claims Act AllegationsRead the Press Release
SAN DIEGO – Dr. Janette J. Gray of San Diego and her former medical practice, The Center for Health & Wellbeing in San Diego, have agreed to pay $3.8 million to settle allegations that they violated the False Claims Act by knowingly submitting false claims to the Medicare and TRICARE programs.
Dr. Gray and The Center claimed to operate an “alternative,” “integrative,” and “holistic” clinic, which was staffed by medical doctors, nurse practitioners, naturopathic doctors, chiropractors, acupuncturists, and mental health professionals, along with ancillary medical and administrative staff. Dr. Gray and The Center promoted IV infusion therapy, hormone/supplement therapy, and a variety of other alternative treatments.
The settlement resolves allegations that from 2012 to 2022, Dr. Gray and her practice billed Medicare and TRICARE for services that were not covered under either program by disguising the rendering provider, misrepresenting the services provided, “unbundling” services (by billing for a procedure or service in separate parts instead of a single code), or billing for services not medically necessary. In addition to paying $3.8 million to resolve the allegations, Dr. Gray will now be excluded from participating in Medicare, Medicaid, and all other Federal health care programs for five years.
“There’s no price tag on the integrity of our healthcare system,” said U.S. Attorney Tara McGrath. “When a doctor engages in billing fraud, we will protect patients and taxpayers from deceit.”
“The civil settlement holds Dr. Gray and her former medical practice accountable for questionable actions that circumvented the TRICARE billing guidelines and allowed them to receive payments for services that should not have been reimbursed by TRICARE, costing American taxpayers millions of dollars,” said Bryan D. Denny, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS and its partners will always aggressively investigate those who defraud TRICARE, because those deceptive actions ultimately harm those defending our country and their families.”
“This investigation is proof that the FBI and its law enforcement partners remain committed to investigating and bringing to justice anyone who tries to violate the American health care system,” said FBI San Diego Acting Special Agent in Charge Houtan Moshrefi.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Southern District of California; the United States Department of Health and Human Services, Office of Inspector General; DCIS; and the FBI. This matter was handled by Assistant U.S. Attorney Maritsa A. Flaherty.
The resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Leader of Fatal Migrant Smuggling Conspiracy Sentenced to 10 YearsRead the Press Release
SAN DIEGO – Felipe de Jesus Rosales-Herrera of Riverside was sentenced in federal court today to 120 months in prison for leading an extensive migrant smuggling ring responsible for illegally transporting more than 100 migrants and causing one death.
According to his plea agreement, Rosales-Herrera employed foot guides to lead migrants over the border and drivers to pick them up on the U.S. side and deliver them to a stash house to meet a sponsor. Rosales-Herrera admitted that he charged approximately $10,000 per migrant. According to court documents, some of the smuggling events in the conspiracy resulted in high-speed chases and crashes, which placed the migrants, drivers, law enforcement and members of the public at risk. This culminated in a tragic collision on December 25, 2021.
Rosales admitted in his plea agreement that, even after learning his driver killed someone, he and his co-conspirators continued the conspiracy. As co-defendant John Douglas Oglesby III admitted in his plea agreement, drivers were told to flee if Border Patrol attempted to pull them over. Unfortunately, many drivers did just that, resulting in numerous high-speed chases and several crashes.
During the Christmas Day event in 2021, Kevin Antonio Quevedo-Moncada, acting under the supervision of co-defendant (and Rosales’ subordinate in the smuggling ring) Jose Luis Alejo-Cruz, picked up three undocumented migrants in a remote area. When Border Patrol attempted to pull him over, Quevedo-Moncada fled into a nearby campground, swerving wildly and careening around a field at high speed before ramming a Border Patrol vehicle to escape. As agents pursued him, he sped away on wet, winding roads, reaching speeds of close to 100 mph. Quevedo-Moncada lost control of his car and struck a tree, killing one of the migrants and leaving the other two in critical condition. Quevedo-Moncada pleaded guilty to charges related to this incident. Alejo-Cruz discussed the smuggling event with Rosales before the crash. Shortly after the crash, Rosales sent Alejo-Cruz a news article about the accident and confirmed that it was their driver.
Alejo-Cruz also relied on intimidation to preserve his position, tracking down and robbing two of his former drivers at gunpoint when he felt they had wronged him and plotting to kidnap a rival migrant smuggler.
“You traded in human life, trafficked in people… to line your own pockets” U.S. District Judge Cathy Ann Bencivengo told the defendant at todays hearing. “The worst-case scenario in alien smuggling, where someone died, did not deter you.” Judge Bencivengo ultimately ruled that the appropriate sentence was “fully and fairly the statutory maximum.”
“These smugglers viewed migrants as dollar signs, not people,” said U.S. Attorney Tara McGrath. “This significant sentence demonstrates the importance of protecting the public from the reckless tactics of criminal networks.”
“This event highlights the danger that these criminal organizations pose to the migrants they are transporting as well as the general public.” said U.S. Border Patrol, San Diego Sector Chief Patrol Agent Patrica McGurk-Daniel. “This outcome is the result of a concerted effort by Border Patrol agents and the U.S. Attorney’s Office to dismantle human smuggling networks and bring those responsible to justice. The sentencing today sends a clear message; if you smuggle people across our borders, you will face serious consequences.”
Co-defendants Alejo-Cruz and Oglesby were previously sentenced to 120 months and 70 months in federal prison, respectively. The final defendant, Miguel Isaac Villa-Gomez, is scheduled to be sentenced on December 6, 2024.
This case is being prosecuted by Assistant U.S. Attorney Paul Benjamin.
DEFENDANTS Case Number 23-CR-871-CAB
Felipe de Jesus Rosales-Herrera Age: 38 Riverside County, CA
Jose Luis Alejo-Cruz Age: 23 Long Beach, CA
John Douglas Oglesby III Age: 20 Chesapeake, VA
Miguel Isaac Villa-Gomez Age: 27 Downey, CA
Case Number 22-CR-1995-B__
John Douglas Oglesby III Age: 20 Chesapeake, VA
SUMMARY OF CHARGES
Conspiracy to Transport Aliens – Title 8, U.S.C., Section 1324
Maximum penalty: Ten years in prison and $250,000 fine
INVESTIGATING AGENCY
United States Border Patrol
U.S. Attorney Alerts Public to Charity Scams in Wake of Hurricane HeleneRead the Press Release
SAN DIEGO – United States Attorney Tara McGrath issued a public safety alert today advising the public to be vigilant to hurricane relief fraud in the wake of powerful hurricanes causing devastation on the East Coast.
“During times of crisis, be vigilant, because not all who ask for help have good intentions,” McGrath said. “Be sure to protect yourself by verifying before you donate to ensure your generous support reaches those truly in need.”
Hurricane Milton is heading for Florida now, less than a week after Hurricane Helene made landfall in Florida’s Big Bend Region on Sept. 26 and quickly caused major devastation there and across states including Georgia, South Carolina, North Carolina, Tennessee, and others. As we have seen in the wake of previous national disasters, fraudsters will target victims of the storm along with citizens across the country who want to do what they can to assist individuals affected by the storm. Unfortunately, criminals exploit disasters for their own gain by sending fraudulent communications through email or social media and by creating deceiving websites designed to solicit contributions.
The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene. Solicitations can originate from phone calls, texts, social media, e-mail, door-to-door collections, flyers, mailings, and other similar methods. Before making a donation to benefit victims of Hurricane Helene, individuals should adhere to certain guidelines, including:
- Make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
- Do not be pressured into making contributions as reputable charities do not use such tactics.
- Do not respond to any unsolicited communications (e.g., e-mails and texts), and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers.
- Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various Internet-based resources that may assist in confirming whether the organization is a valid charity.
- Beware of organizations with copy-cat names similar to, but not exactly the same as, those of reputable charities.
- Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
- Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in .org rather than .com.
- Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate, and prosecute fraud in the wake of disasters. More than 50 federal, state, and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.
Passenger in Highway 76 Emergency Plane Landing Facing Drug ChargesRead the Press Release
SAN DIEGO –Troy Othneil Smith, a passenger aboard a small aircraft that made an emergency landing on Highway 76 in Oceanside last month, appeared in federal court today to face drug charges stemming from the incident.
According to a complaint, after the plane landed safely, Smith attempted to hide a package of cocaine from Oceanside police officers who responded to the emergency landing that occurred at about 1:39 a.m. on September 26, 2024.
According to the complaint, Smith was under investigation by the DEA and the U.S. Postal Service prior to the emergency landing. In that ongoing probe, Smith is suspected of shipping narcotics from Oceanside, California, across the United States through the United States Postal Service.
Flight records indicate the private plane departed from a San Diego airport at approximately 10:49 a.m. on September 25, 2024, and landed at about 6:48 p.m. that evening in Mesa, Arizona. At approximately 11:08 p.m. on September 25, 2024, the airplane departed Mesa, Arizona and headed westward toward California. At approximately 1:28 a.m., the airplane flew past Carlsbad over the Pacific Ocean, and made a U-turn heading back toward Oceanside. At approximately 1:39 a.m., the airplane made an emergency landing on Highway 76.
Based upon information gathered during the investigation, law enforcement learned that the pilot and passenger, later identified as Smith, began experiencing mechanical issues with the airplane during the flight as it arrived in San Diego County airspace. The pilot and passenger were planning an ocean landing because the airplane seemed to shut-off and was malfunctioning. They were able to turn the airplane around over the ocean as the airplane and engine began working again. After a short time, the engine shut off a second time, which resulted in the pilot landing the plane on Highway 76.
The Oceanside Police Department immediately responded to the scene on Highway 76 and found the pilot and passenger near the airplane. The passenger identified himself to police officers as Smith. One of the officers on scene noticed Smith was wearing a backpack and was pacing near the plane. After ordering Smith to stop going back to the airplane, the officer turned his attention away from Smith. When he heard the unzipping of a backpack, the officer immediately turned his attention back toward Smith, who was near the guardrail on the highway. The officer observed Smith reach into the backpack, take something out, and place it in the bushes. The officer ordered Smith to step away from the guardrail, while another officer went over to the guardrail and found a heat-sealed, air-tight package resting on the ground among the bushes. The contents of the package tested positive for cocaine. Smith was arrested.
Smith’s preliminary hearing and arraignment are scheduled to take place on October 31, 2024, at 1:30 p.m.
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
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
San Diego Restaurant Owner Convicted of Tax and COVID-Relief Fraud SchemesRead the Press Release
NEWS RELEASE SUMMARY – September 18, 2024
SAN DIEGO – A federal jury convicted San Diego restaurant owner Leronce Suel of wire fraud, conspiracy, and tax crimes for providing bogus information in applications for COVID relief programs and failing to report more than $1.7 million in revenue to the IRS.
According to court documents and evidence presented at trial, 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.
The jury found that 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 loans and Restaurant Revitalization Fund 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, 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.
Suel failed to report income he received from his business, including millions of dollars in cash and personal expenses paid for by the businesses. In 2023, Suel also filed original and amended tax returns for prior years that included false depreciable assets and business losses.
“Shirking taxes, lying to the IRS, and stealing COVID relief funds - these are not victimless crimes,” said U.S. Attorney Tara McGrath. “This jury saw through greed and deceit to ensure protection of federal programs designed to support our infrastructure and serve those in need.”
“For more than a decade, Mr. Suel evaded his tax responsibilities both as an individual and as a business owner,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Even worse than evading his tax obligations, during the COVID pandemic, Mr. Suel fraudulently obtained grants and loans intended to help businesses struggling in the wake of the pandemic and used those funds for personal gain. Paying your fair share is central to our democracy, and IRS Criminal Investigation will continue to pursue those who evade their financial responsibilities to their fellow Americans.”
After conviction, Suel stipulated to forfeit $1,466,918 from the $2.4 million seized as proceeds traceable to his pandemic relief fraud.
Suel is scheduled to be sentenced on December 13, 2024.
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.
DEFENDANT Case Number 23-cr-00965
Leronce Suel Age: 46 San Diego, CA
SUMMARY OF CHARGES
Wire Fraud Conspiracy – Title 18, U.S.C., Section 1349
Maximum penalty: Thirty years in prison and $1 million fine
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum Penalty: Thirty years in prison and $1 million 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
IRS Criminal Investigations
Virginia-Based Defense Contractor to Pay $2.25 Million Fine for Bribery ConspiracyRead the Press Release
SAN DIEGO – Cambridge International Systems, Inc., a defense contractor headquartered in Arlington, Virginia, was sentenced in federal court today to pay a criminal fine of $2,250,000 after admitting that it participated in a scheme to bribe a public official at Naval Information Warfare Center in exchange for winning and maintaining hundreds of millions of dollars in government contracts.
According to Cambridge’s April 2024 plea agreement, the company – acting through its former Executive Vice President Russell Thurston and an unnamed employee – gave various things of value to former Naval Information Warfare Center employee James Soriano, including jobs for Soriano’s family and friends, meals, and a ticket to the 2018 MLB All Star Game held at Nationals Park in Washington, D.C.
In return, Soriano, acting in his position as a contracting officer’s representative at the Naval Information Warfare Center, ensured that Cambridge was awarded two large task orders. Soriano further ensured Cambridge was able to capture a steady stream of government funds by approving various additional projects on the task orders, including more than 70 projects on one of the task orders.
As a result of the conspiracy, the government obligated more than $32 million on one of the task orders and more than $100 million on the other. Although $132 million was obligated, only $1,672,102.23 had been paid out by the government at the time the fraud was uncovered.
Since pleading guilty, Cambridge was ordered to forfeit $1,672,102.23. The fine imposed today further penalizes the company for its criminal scheme, while acknowledging its diminished financial condition as a result of its guilty plea. The company was also placed on a two-year period of probation, during which time it will be closely monitored. As a condition of probation, the company is also setting up a fund to benefit the family of a slain employee.
“With a fine of over $2 million, the court sent a message to government contractors,” said U.S. Attorney Tara McGrath. “Cheating the system doesn’t pay out in the end.”
“Cambridge International Systems’ sentencing brings closure to its part in an illicit scheme to enrich the company and others with the assistance of corrupt government officials,” said Bryan D. Denny, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Western Field Office. “This outcome, and others associated with this investigation and prosecution, should serve as a warning to those who would subvert the proper government acquisition process for their own personal gain at the expense of the American taxpayer and our nation’s warfighters.”
“The sentencing of Cambridge International Systems, Inc. should serve as an example and a warning to other companies seeking defense contracts that corrupting the acquisition process will not be tolerated,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “The culture of complicity demonstrated by Cambridge International is just as detrimental to national security as actively handing over bribes, and IRS CI remains committed to working with our law enforcement partners to protect our warfighters from such corruption.”
“Cambridge deserves to be held accountable for perpetuating an illegal bribery scheme that undermined the fairness of the defense procurement process,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS appreciates our investigative partners for their continued efforts to protect our nation's warfighters from the threats posed by such corruption.”
Thurston is separately charged with conspiracy to commit bribery and bribery in case number 24CR341-TWR; a motion hearing is scheduled for April 11, 2025. Soriano pleaded guilty to conspiracy to commit bribery and bribery in case numbers 23CR2282-TWR and 24CR341-TWR; his sentencing is scheduled for May 9, 2025.
DEFENDANT Case Number 24-cr-759-TWR
Cambridge International Systems, Inc. Arlington, VA
SUMMARY OF CHARGES
Conspiracy to Commit Bribery - Title 18, U.S.C., Section 371
Maximum penalties: Five years corporate probation; a maximum $500,000 fine or twice the gross gain or loss resulting from the offense, whichever is greatest
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Small Business Administration – Office of Inspector General
Internal Revenue Service Criminal Investigation
Department of Health and Human Services – Office of Inspector General
If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098.
San Diego Man Receives First Conviction in Nation for Illegally Importing Harmful Greenhouse Gases into the United StatesRead the Press Release
SAN DIEGO – Michael Hart of San Diego pleaded guilty in federal court today, admitting he conspired to illegally import potent greenhouse gases known as hydrofluorocarbons (HFCs) into the United States from Mexico and sell them for a profit in violation of regulations intended to slow climate change. In addition to greenhouse gases, Hart admitted to conspiring to illegally import hydrochlorofluorocarbons (HCFCs), namely HCFC 22, an ozone-depleting substance banned under the Clean Air Act.
HFCs are used in applications such as refrigeration, air-conditioning, building insulation, fire extinguishing systems, and aerosols. The global warming impact of an HFC can be hundreds to thousands of times greater than carbon dioxide. Because of this, there has been an international phasedown of HFCs by 85 percent, resulting in an increase in the illegal smuggling and importation of HFCs.
This case is the first prosecution in the United States under the American Innovation and Manufacturing Act of 2020 (AIM Act). The AIM Act prohibits importing HFCs without allowances issued by the Environmental Protection Agency (EPA), and also prohibits selling, distributing, or offering for sale or distribution HFCs imported without allowances issued by the EPA.
“Congress made it illegal to import certain refrigerants into the United States without allowances because of their documented and significantly greater contribution to climate change,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The Justice Department is committed to enforcing the AIM Act and other laws that seek to prevent environmental harm.”
As set forth in court documents, from about June to December 2022, Hart offered HFCs and HCFCs for sale via OfferUp, Facebook Marketplace and other internet sites. He then communicated with conspirators in the United States, who placed purchase orders for the refrigerants with Hart. Once the orders were placed, Hart purchased the refrigerants in Mexico with the help of his conspirators and illegally imported them into the United States concealed in his vehicle. Thereafter, Hart illegally sold the refrigerants to others in the United States, profiting from the black market for such refrigerants in the United States.
“Clean air is not for sale to the highest bidder,” said U.S. Attorney Tara McGrath. “The Department of Justice will use every tool at our disposal to protect air quality and hold criminal polluters accountable.”
“During Climate Week, the United States recognizes the urgent need to limit climate super pollutants like HFCs to help address the existential threat of climate change," said David M. Uhlmann, EPA Assistant Administrator of the Office of Enforcement and Compliance Assurance. "Today's guilty plea for the first-ever HFC arrest demonstrates EPA's commitment to vigorously enforcing our laws at all U.S. borders and ports to prevent illegal HFC canisters from entering the U.S."
Hart is scheduled to be sentenced December 9, 2024 at 9:00 a.m. before U.S. District Judge Marilyn Huff.
This case is being prosecuted by Assistant U.S. Attorney Mark W. Pletcher and Department of Justice Environmental Crimes Section Senior Trial Attorney Stephen DaPonte.
DEFENDANTS Case Number 24-CR-0383-H
Michael Hart Age: 58 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Violate the Clean Air Act Regulations (Title 42, U.S.C., Secs. 7671, 7413) and the American Innovation and Manufacturing Act Regulations (Title 42, U.S.C., Secs. 7675, 7413) – Title 18, U.S.C., Sec. 371
Maximum penalty: Five years in prison and $250,000 fine
INVESTIGATING AGENCIES
U.S. Environmental Protection Agency, Criminal Investigation Division
Homeland Security Investigations
Violent Sex Trafficker Sentenced to More than 15 Years in PrisonRead the Press Release
NEWS RELEASE SUMMARY – September 16, 2024
SAN DIEGO – Troy Shelvin Cannon of Las Vegas was sentenced in federal court today to 188 months in prison for sex trafficking by fraud, force, or coercion. Cannon was convicted by a federal jury after a three-day trial in April.
The jury found that Cannon was sex trafficking an adult female victim and taking the money she earned from engaging in commercial sex acts to use for his own personal profit. Over many months, Cannon coerced the victim to continually engage in prostitution. For example, Cannon texted the victim messages that stated, in part:
- “And ima choke you so hard”
- “You making this ass whooping worse”
- “Bitch make some trap”
- “Hoe I got accolades and receipts and videos bout my pimping”
On December 20, 2023, Cannon followed through on his prior threats, violently assaulting the victim by strangling her and punching her face. Cannon left his victim with multiple serious injuries, which caused, in part, significant swelling to her forehead, bruising on her arms, and abrasions throughout her body.
According to evidence presented at trial, this was not Cannon’s first foray into “pimping.” For example, in 2021, Cannon was arrested for pandering in Las Vegas after he tried to traffic a detective who was undercover as a prostitute.
“Cannon used violence and intimidation to exploit a human being for profit,” said U.S. Attorney Tara McGrath. “The court imposed a sentence today holding him accountable, and sending a message that this kind of crime for greed will not be tolerated in San Diego.”
“HSI is committed to protecting the vulnerable and keeping our communities safe,” said Christopher Davis, acting special agent in charge for HSI San Diego. “Every time HSI and our law enforcement partners are successful at apprehending violent predators, we deliver a strong message - exploitation will not be tolerated, and those who prey on the weak will face the full weight of the law.”
This case is being prosecuted by Assistant U.S. Attorney Derek Ko, Katie Grammenidis and Lyndzie Carter.
DEFENDANT Case Number 24cr0135-BAS
Troy Shelvin Cannon Age: 30 Las Vegas, Nevada
SUMMARY OF CHARGES
Sex Trafficking by Force, Fraud, and Coercion – Title 18, U.S.C., Section 1591(a) and (b)(1)
Maximum penalty: Life in prison and $250,000 fine
INVESTIGATING AGENCIES
Homeland Security Investigations
San Diego Human Trafficking Task Force
El Cajon Man Who Sold “Ghost Guns” While Serving as a U.S. Marine Sentenced to PrisonRead the Press Release
NEWS RELEASE SUMMARY – September 16, 2024
SAN DIEGO – Christian Ferrari of El Cajon was sentenced in federal court today to 37 months in prison following his admission that he sold 22 “ghost guns” to undercover agents without a license. At the time of the sales, Ferrari was an active-duty U.S. Marine stationed at Camp Pendleton.
Privately made firearms, commonly referred to as ghost guns, are made by individuals, like Ferrari, who buy parts and then use various specialized tools to construct and assemble the parts into a functional firearm. Unlike firearms made by licensed firearm manufacturers, ghost guns do not have a serial number, making them virtually untraceable.
Ferrari’s arrest was part of the Privately Made Firearm Crime Reduction Project, which ran from February to May of 2023. The Project was initiated to address gun violence and the proliferation of ghost guns in San Diego. Using data analytics to identify trends in areas with heightened gun violence and the recovery of guns used in crimes, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the San Diego Police Department (SDPD) employed an intelligence-led policing effort to place resources where they would have the greatest impact. The Project resulted in the seizure of 165 ghost guns and the prosecution of 33 people, including Ferrari.
Between March 13 and May 9, 2023, Ferrari sold 22 ghost guns to ATF agents in exchange for $23,000 over four separate transactions. During one of the transactions, undercover agents told Ferrari those guns were going to be taken to Mexico. Ferrari responded, “alright, perfect,” and agreed to sell the agents 10 more ghost guns for $10,000. After the final transaction was completed, Ferrari was arrested. Pictured below are the 22 ghost guns Ferrari manufactured and sold to undercover ATF agents:
Following Ferrari’s arrest, agents discovered evidence that Ferrari was manufacturing firearms at a family member’s residence in Lakeside, California. Agents later found a drill press covered in metal shavings consistent with material used to manufacture of firearms.
A forensic analysis of Ferrari’s phone revealed numerous other conversations related to manufacturing and selling firearms and parts, which included AR-15 style rifles, silencers for firearms, and “full auto sears,” which convert AR-15s to fire automatically.
U.S. District Judge Cynthia A. Bashant told the defendant at today’s hearing: “What you did was an enormous danger to the public.”
“By design, ghost guns are made to avoid regulation and slip past law enforcement,” said U.S. Attorney Tara McGrath. “But with intelligence-based efforts like the program used to take these 22 illegal weapons off the street we are prioritizing public safety.”
“Dealing firearms without a license oftentimes results in individuals who are prohibited from owning firearms — such as felons, domestic abusers, or individuals with certain mental health conditions — to bypass background checks and obtain weapons,” said Christopher Bombardiere, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge of Los Angeles Field Division. “These firearms end up in the hands of criminals and are used in violent crimes, including homicides, robberies, and gang-related activities. ATF will continue to work with local and state law enforcement agencies to investigate the criminal possession and other criminal misuse of privately made firearms in the same manner as any other federal firearm offense.”
This case is being prosecuted by Assistant U.S. Attorney Shital H. Thakkar.
DEFENDANTS Case Number: 23-cr-01091-BAS
Christian Ferrari Age: 23 El Cajon, CA
SUMMARY OF CHARGES
Dealing in Firearms Without a License – Title 18, U.S.C., Section 922(a)(1)(A)
Maximum penalty: Five years in prison and $250,000 fine per count
INVESTIGATING AGENCIES
Bureau of Alcohol, Tobacco, Firearms and Explosives
San Diego Police Department
Man Sentenced for Transporting Three Teens to San Diego for ProstitutionRead the Press Release
NEWS RELEASE SUMMARY – Sept 13, 2024
SAN DIEGO – Clifford Stokes Jr. of Tempe, Arizona, was sentenced in federal court today to 10 years in prison for transporting a 19-year-old woman and two 16-year-old girls from Arizona to San Diego in January 2023 to engage in prostitution. One of the minor victims was reported as a missing juvenile from Arizona at the time Stokes drove her and the other two victims to an area in San Diego known for street-based commercial sex trafficking.
On January 17, 2023, San Diego Human Trafficking Task Force officers were conducting an operation in a high-prostitution area to recover sex trafficking victims when they observed Stokes driving his vehicle with out-of-state plates into the area and letting two of the victims out of the car. Officers observed as the victims began walking the street and waving at vehicles. When Stokes returned to the area in his vehicle to pick up the two victims, task force officers initiated a traffic stop. Stokes, the driver of the vehicle, was found to be in possession of a loaded firearm, and the three victims were passengers.
The adult victim told investigators that Stokes used violence and threats of violence to require her to earn $1,000 a day in commercial sex acts for his financial benefit. Officers were able to quickly identify the juvenile victims and contact Child Welfare Services, helping to reunite the victims with their families back home to Arizona.
“Today’s sentence underscores the gravity of human trafficking crimes,” said U.S. Attorney Tara McGrath. “The road to recovery for these young girls will be long and painful, but they will walk free from fear and brutality years before this defendant is released from prison.”
“This sentencing sends a clear message to potential offenders that they will be held accountable for their criminal behavior and the exploitation of the youth in California will not be tolerated,” said Attorney General Bonta. “I’m extremely grateful to our San Diego Human Trafficking Task Force, local law enforcement and our federal partners for their dedication and commitment to keeping our communities safe. My office always stands ready to work with our partners across California to fight for public safety.”
“Predatory behavior will not be tolerated by HSI,” said Christopher Davis, acting special agent in charge for HSI San Diego. “This investigation demonstrates HSI’s unwavering commitment to protecting the victims of these crimes and bringing these predators to justice.”
If you are living or working under threat of violence or extortion, or you suspect someone else may be, call the National Human Trafficking Resource Center toll free, 24/7 Hotline: CALL: (888) 373-7888 or TEXT BeFree or 233733.
This case was prosecuted by Assistant U.S. Attorney Derek Ko and Lyndzie M. Carter.
DEFENDANTS Case Number 23-cr-00258-TWR
Clifford Stokes Jr. Age: 23 Tempe, AZ
SUMMARY OF CHARGES
Transportation for Purpose of Prostitution – Title 18, U.S.C., Section 2421(a)
Maximum penalty: Ten years in prison and $250,000 fine
INVESTIGATING AGENCIES
San Diego Human Trafficking Task Force
San Diego Police Department
San Diego Sheriff’s Office
California Highway Patrol
Bonita Man Pleads Guilty to Sex Trafficking of a 15-Year-Old Girl and Providing the Fentanyl that Resulted in Her DeathRead the Press Release
NEWS RELEASE SUMMARY – September 12, 2024
SAN DIEGO – Marcus Ray Chavez of Bonita pleaded guilty in federal court today, admitting that he provided fentanyl pills to a 15-year-old girl in exchange for sex, and that the fentanyl ultimately resulted in her death.
On at least four occasions between September and November 2022, Chavez provided the girl with two “M30” pills he knew were counterfeit pharmaceutical pills that contained fentanyl. Chavez also admitted to knowing the girl was underage. On November 12, 2022, the girl fatally overdosed from pills that Chavez provided.
As a result of his guilty plea, Chavez will be sentenced to no less than 20 years in custody, the statutory mandatory-minimum penalty for distributing fentanyl resulting in death.
“This heartbreaking case brings home the devastation caused by fentanyl,” said U.S. Attorney Tara McGrath. “For his role as the dealer in this tragedy, the defendant will spend at least the next 20 years of his life in prison.
“Fentanyl continues to devastate lives and families across the country,” said DEA Special Agent in Charge Brian Clark. “The defendant preyed upon this young girl and stole her life. The DEA and its partners continue to vigorously pursue those who deal fentanyl and bring them to justice.”
“Our hearts are with the family and loved ones of those impacted by this case,” said San Diego Police Chief Scott Wahl. “Justice has been served for this young victim, whose life was cut tragically short. SDPD will continue to pursue every available avenue to hold fentanyl dealers accountable for these kinds of crimes.”
This case is being prosecuted by Assistant U.S. Attorneys Owen Roth and Katherine E.A. McGrath.
Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation, with support from the San Diego Police Department. This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, the Drug Enforcement Administration, Homeland Security Investigations, the San Diego Police Department, the La Mesa Police Department, National Guard Counterdrug Task Force and the California Department of Health Care Services to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County.
DEFENDANT Case Number 23cr1354-JES
Marcus Ray Chavez Age: 30 Bonita, CA
SUMMARY OF CHARGES
Sex Trafficking of a Minor – Title 18, U.S.C., Sections 1591(a)(1), (b)(2)
Maximum penalty: Mandatory minimum 10 years in prison, maximum life in prison and $250,000 fine
Distribution of Fentanyl Resulting in Death – Title 21, U.S.C., Sections 841(a), 841(b)(1)(C)
Maximum penalty: Mandatory minimum 20 years in prison, maximum life in prison and $1 million fine
INVESTIGATING AGENCIES
Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10)
San Diego Police Department
San Diego County District Attorney’s Office
Homeland Security Investigations
La Mesa Police Department
National Guard Counterdrug Task Force
California Department of Health Care Services
Man Sentenced to 40 Months for Participating in International Money Laundering Scheme Involving More Than $3 Million in Fraud ProceedsRead the Press Release
NEWS RELEASE SUMMARY – September 9, 2024
SAN DIEGO – Juan Pablo Prada Bernal of Colombia was sentenced in federal court today to 40 months in prison for participating in an international money laundering conspiracy involving more than $3 million in proceeds obtained through phone scams.
At today’s hearing, U.S. District Court Judge Andrew G. Schopler also ordered Bernal to pay $327,040.72 in restitution to 27 victims of the offense.
According to his plea agreement, between June 2018 and March 2020, Bernal was a member of an international conspiracy that laundered large amounts of money. The conspiracy involved two sides: Those responsible for contacting victims by phone and tricking them into sending thousands of dollars to U.S.-based bank accounts, and those responsible for laundering the proceeds through those bank accounts. The money launderers received and transferred the ill-gotten gains to their co-conspirators in Colombia and the United States, and in the process concealed the nature, source, location, ownership and control of the proceeds.
The money launderers opened bank accounts at various financial institutions using false mailing addresses. Shortly after the accounts were opened, the phone scammers – many of whom lived in Colombia – made unsolicited phone calls to victims in the United States using spoofed phone numbers. This allowed callers to conceal their identity and make it appear as if the calls originated from locations in the United States, such as a police station where the victim lived or had lived in the past.
During calls with victims, the scammers impersonated federal and local law enforcement officers and made the victims believe they were implicated in a crime. Using this as leverage, the conspirators coerced victims to make large wire transfers or other payments to purportedly resolve their criminal liability. The scammers instructed victims to wire funds to the various bank accounts opened by the money launderers. Once the money was deposited into the accounts, the money launderers quickly moved to withdraw the funds, purchase cashier’s checks to send to other conspirators, and drain the balance of the accounts before the funds could be frozen.
According to the United States’ sentencing memorandum, Bernal opened bank accounts at 10 different financial institutions to carry out the money laundering scheme. In many instances, Bernal received the fraud proceeds shortly after he opened the bank accounts and drained the balance of the accounts in a matter of days. After banks stopped allowing Bernal to open new accounts, he began to receive and launder cashier’s checks sent from his co-conspirators that were purchased with fraud proceeds obtained from other victims. To carry out this new role, Bernal and his co-conspirators traveled to multiple Moneytree locations in the same day for the purpose of laundering large amounts of fraud proceeds over a short period of time.
Over the course of approximately two years, Bernal received and laundered fraud proceeds more than 30 times from 27 different victims, including varying amounts of cashier’s checks from 14 of his co-conspirators, totaling an amount of $327,040.72.
“These scammers are sophisticated and will prey on emotion and fear,” said U.S. Attorney Tara McGrath. “This defendant turned deceit into profit, so we turned his profit into a conviction.”
“FBI Los Angeles works closely with our law enforcement partners to combat money laundering in our communities. Mr. Bernal’s sentence should serve as a deterrent to those who seek to prey on innocent victims” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “The FBI reminds the public to be vigilant and never send money, gift cards, or share personal identifying information with a caller and to verify that the caller is a legitimate business or organization. The public is urged to report these calls to 1-800-CALL-FBI or tips.fbi.gov.”
“The U.S. Border Patrol is an all-threats agency, and we will continue to work with our law enforcement partners to protect our citizens from any and all threats,” said Chief Patrol Agent Patricia McGurk-Daniel. “I couldn’t be prouder of the work done by these agents to secure a significant and successful prosecution.”
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 Patrick C. Swan.
DEFENDANT Case Number 23-cr-1483-AGS
Juan Pablo Prada Bernal Age: 24 Columbia
SUMMARY OF CHARGES
Money Laundering Conspiracy - Title 18, U.S.C., Section 1956(h)
Maximum Penalties: Twenty years in prison and a $250,000 fine or twice the value of the property involved in the transaction
INVESTIGATING AGENCIES
U.S. Department of Homeland Security
U.S. Customs and Border Protection
U.S. Border Patrol
Federal Bureau of Investigation
Organized Crime Drug Enforcement Task Force
U.S. Secret Service
Man Arrested and Charged with Stealing Benefits from Low-Income FamiliesRead the Press Release
NEWS RELEASE SUMMARY – September 6, 2024
SAN DIEGO –Andrei Bogdan Arteni of Romania appeared in federal court in Los Angeles today to face charges in the Southern District of California that he conspired to steal hundreds of thousands of dollars in public-assistance benefits from low-income families that need the funds to pay for food, housing and other necessities. He was ordered detained and will appear in federal court in San Diego for his next hearing.
Arteni was arrested in Santa Ana yesterday in connection with the thefts, which resulted in losses exceeding $580,000. According to the complaint, between October 2023 and March 2024, he and co-conspirators installed skimming devices at point-of-sale terminals in grocery stores and large-volume retailers in communities with higher concentrations of public benefit recipients. The data skimmed from government-issued benefit cards, known as EBT (electronic benefit transfer) cards, was then re-encoded onto the magnetic strips of fraudulent cards that they used to make tens of thousands of dollars in unauthorized ATM withdrawals over the course of several months.
Also yesterday, authorities served court-authorized search warrants at two storage units in National City and Newport Beach, and Romanian authorities served warrants on 10 residences across Romania. U.S. federal authorities seized more than $550,000 in cash, jewelry, and skimming devices. Romanian authorities seized two properties in the cities of Iași and Podu Iloaiei, along with more than $190,000 and €200,000 cash.
“Stealing public assistance funds from those who need it most takes greed to a new depth,” said U.S. Attorney Tara McGrath. “With this case, we are enforcing laws designed to protect the security of electronic payment devices and ensure public confidence in everyday transactions.”
“EBT fraud is especially devastating as it targets our most vulnerable community members and can cause extreme financial hardship,” said Jason Reynolds, the Special Agent in Charge of the U.S. Secret Service’s San Diego Field Office. “The U.S. Secret Service, and our partners remain committed to investigating these crimes so that those receiving these benefits do not have to worry about their benefits being stolen.”
“Homeland Security Investigations is dedicated to working with our foreign law enforcement partners to disrupt and dismantle trans-national fraud groups who victimize U.S. banking institutions and government programs for their financial benefit,” said HSI Los Angeles Special Agent in Charge Eddy Wang. “This case is an example of how HSI will go to great lengths to bring those who perpetrate these crimes to justice.”
According to court documents, Arteni and his co-conspirators used false identities to rent out an Airbnb, a storage unit in Newport Beach, and a storage unit in National City. The storage unit in Newport Beach stored several household appliances with cash concealed inside—some of which were shipped to Romania.
According to the complaint, the brothers were linked to the crimes through surveillance photos at ATMs in San Diego County where they made fraudulent withdrawals. Victims are located throughout Southern California, including San Diego, Los Angeles and Riverside.
This case is being prosecuted by Assistant U.S. Attorneys Ronald Sou and David Kete. Valuable assistance was provided by the U.S. Attorney’s Office for the Central District of California, U.S. Customs and Border Protection, Los Angeles Sheriff’s Department, the National City Police Department, and Romanian authorities, including Romania Public Ministry Prosecutor’s Office of DIICOT – Galați Territorial Service, Galați and Iași Police-Organized Crime Brigades.
If you or someone you know has had your EBT benefits stolen, San Diego County’s Department of Health & Human Services Agency requires that the theft be reported within 10 days. More information for San Diego County victims is available at: https://www.sandiegocounty.gov/content/sdc/hhsa/programs/ssp/ebt_fraud.html.
DEFENDANT Case Number 24MJ1934
Andrei Bogdan Arteni 35 Santa Ana
SUMMARY OF CHARGES
Title 18, U.S.C. §§1029(a)(2), (b)(1), and (c)(1)(A)(i) – Use and Attempted Use of Unauthorized Access Devices
Maximum Penalty: Ten years in prison, $250,000 fine
Title 18, U.S.C. §1029(a)(2), (b)(2), and (c)(1)(A)(i) – Access Device Conspiracy
Maximum Penalty: Ten years in prison, $250,000 fine
Title 18, U.S.C. §§ 982(a)(2)(B) and 1029(c)(1)(C) – Criminal Forfeiture
INVESTIGATING AGENCIES
Homeland Security Investigations, Los Angeles
United States Secret Service, San Diego
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Wynn Las Vegas Forfeits $130 Million for Illegally Conspiring with Unlicensed Money Transmitting BusinessesRead the Press Release
NEWS RELEASE SUMMARY – September 6, 2024
SAN DIEGO – Wynn Las Vegas, the Las Vegas casino and subsidiary of Wynn Resorts, Limited, agreed today to forfeit $130,131,645 to settle criminal allegations that it conspired with unlicensed money transmitting businesses worldwide to transfer funds for the financial benefit of the casino.
Today’s settlement is believed to be the largest forfeiture by a casino based on admissions of criminal wrongdoing.
“Casinos, like all businesses, will be held to account when they allow customers to evade U.S. laws for the sake of profit,” said U.S. Attorney Tara McGrath. “Federal oversight seeks to prevent illegal funds from tainting legitimate businesses, ensuring that casinos offer a clean, thriving, and safe entertainment option.”
As part of a Non-Prosecution Agreement, which allows a company or individual to avoid criminal prosecution in exchange for meeting certain criteria, Wynn Las Vegas (WLV) admitted that it illegally used unregistered money transmitting businesses to circumvent the conventional financial system.
For example, WLV regularly contracted with third-party independent agents acting as unlicensed money transmitting businesses to recruit foreign gamblers to WLV. For the gamblers to repay debts to WLV or have funds available to gamble at WLV, the independent agents transferred the gamblers’ funds through companies, bank accounts, and other third-party nominees in Latin America and elsewhere, and ultimately into a WLV-controlled bank account in the Southern District of California.
Funds deposited into the WLV-controlled account were transferred into the WLV cage account. WLV employees, with the knowledge of their supervisors, and working with the independent agents, eventually credited the WLV account of each individual patron. The convoluted transactions enabled foreign gamblers at WLV to evade foreign and U.S. laws governing monetary transfer and reporting.
In one example, Juan Carlos Palermo, while acting as an independent agent for WLV, operated and controlled multiple unlicensed money transmitting businesses in the United States and abroad that conducted more than 200 transfers with bank accounts controlled by WLV or associated entities. These transactions, on behalf of more than 50 foreign casino patrons, exceeded $17.7 million.
WLV also facilitated the unlicensed transfer of money through “Human Head” or “Human Hat” gambling, known in Mandarin as “人头” or “ren tou.” In this scheme, a person known as a “Human Head” purchased chips at WLV and gambled at WLV as a proxy for another nearby person who, in some instances, because of federal Bank Secrecy Act or Anti-Money Laundering (BSA/AML) laws, was unable or unwilling to conduct financial transactions or gamble under their own identity. The true patron, however, would direct the Human Head’s gaming. WLV knowingly allowed this form of gambling without scrutinizing the true patron’s funds and without reporting the suspicious activity.
In another example, WLV facilitated the unlicensed transfer of money to and from China through a method known as “qian chen” or “Flying Money.” A money processor, acting as an unlicensed money transmitting business, collected U.S. dollars in cash from third parties in the United States and delivered that cash to a WLV patron who could not otherwise access cash in the U.S. The patron then electronically transferred the equivalent value of foreign currency from the patron’s foreign bank account to a foreign bank account designated by the money processor. The WLV patron paid the money processor a percentage of the value transferred. Like Human Head gambling, WLV knowingly allowed this form of gambling without scrutinizing the source of funds and without reporting the suspicious activity.
WLV also facilitated the international transfer of money and conducted other financial transactions for WLV patrons whose activity should have triggered the filing of Suspicious Activity Reports. For example, in 2018, WLV facilitated financial transactions worth approximately $1.4 million for an individual who two years earlier had been publicly linked to proxy gambling and a year earlier, while in the company of the President of Marketing of a WLV international affiliate, was denied entry to the United States because of suspected associations with a criminal organization.
In another instance, WLV allowed and did not report transactions involving millions of dollars by an individual who, according to publicly available information, had spent six years in prison in China for conducting unauthorized international monetary transactions and violations of other financial laws.
“Of the many unique authorities HSI is able to enforce, understanding and investigating complex financial crimes that lead to holding criminals accountable for their actions, is one that HSI does best,” said Christopher Davis, acting special agent in charge for HSI San Diego. “The success of this investigation is in part due to our partner agencies’ cooperation and dedication to seeing these long-term investigations through to bring justice to these companies and protect American financial institutions.”
“Federal laws that regulate the reporting of financial transactions are in place to detect and stop illegal activities. Deliberately avoiding Bank Secrecy Act requirements is a form of money laundering. IRS Criminal Investigation is committed to following the money and enforcing these laws, wherever it leads” said Carissa Messick, Special Agent in Charge for IRS-CI in Las Vegas.
“Law enforcement put their collective authorities together to ensure the integrity of our financial systems and that they are not circumvented,” said DEA Special Agent in Charge Brian Clark.
As part of this investigation, 15 other defendants previously have admitted money laundering, unlicensed money transmitting, or other crimes, with associated criminal penalties of over $7.5 million.
This case was prosecuted by Assistant U.S. Attorneys Mark W. Pletcher and Carl F. Brooker IV.
INVESTIGATING AGENCIES
Homeland Security Investigations
IRS-Criminal Investigations, Las Vegas Financial Crimes Task Force
Drug Enforcement Administration
Former University City High School Teacher Sentenced to 120 Months for Trying to Buy Sex Acts from a 16-Year-OldRead the Press Release
NEWS RELEASE SUMMARY – September 5, 2024
SAN DIEGO – Sean Stevenson, a former high school science teacher at University City High School, was sentenced in federal court today to 120 months in prison for attempting to purchase oral sex from a 16-year-old. Stephenson was still a high school teacher at the time of the offense.
The defendant pleaded guilty on June 13, 2024, to one count of Attempted Enticement of a Minor.
According to the publicly-filed documents in the case, between April 9, 2023, and April 16, 2023, Stevenson used a voice over internet protocol (VOIP) line to negotiate by text message for commercial sex with an individual that went by the name of Kash and who represented to Stevenson that she was 20 years old. From April 15, 2023, through April 16, 2023, Stevenson offered Kash a fee to find a female under the age of 18 for Stevenson. In pertinent part, Stevenson stated to Kash the following:
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- “And I don’t suppose you know in[sic] younger girls I could pay u a premium for?”
- “I pay u a finders fee and I pay her”
- “The younger the better.”
- “Just keep it in mind if you come across any high school age girls”
- “Not young enough” (in response to Kash suggesting an 18 year old).
Between October 2, 2023, and October 24, 2023, Stevenson continued to negotiate by text message for commercial sex with an individual he believed to be Kash, but who was actually an undercover officer (UC). When the UC referenced a 16-year-old cousin as being available for commercial sex with Stevenson, he responded “Oh … yes!” and negotiated for the following:
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- $150 for a “bbbj” (oral copulation without a condom)
- $100 for manual genital stimulation
- A “car date” (a commercial sex encounter that occurs inside a vehicle)
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On October 17, 2023, Stevenson messaged the UC “Do you still have a younger girl?” and again negotiated the exchange of $150 for “bbbj” with the 16-year-old cousin.
On October 23, 2023, Stevenson re-engaged with the UC to confirm he still wanted to meet with the 16-year-old cousin for a commercial sex date. In pertinent part, Stevenson stated the following to the UC:
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- “Ok, and $150 for a cardate bbbj. No condom.”
- “Also, can you send a pic of your cousin please?” (lips emoji)
- “Sexy pic”
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On October 24, 2023, Stevenson agreed to meet with the 16-year-old cousin for the commercial sex date. The UC provided an address in San Diego, to which Stevenson asked, “what is she wearing?” (in reference to the 16-year-old cousin). Stevenson also renegotiated a fee of $140 for oral sex.
On October 24, 2023, at approximately 7:00 a.m., Stevenson arrived at the provided location. Stevenson drove to a parking lot where he had a full, unobstructed view of the meeting location and then drove laps near the location where Stevenson was told the 16-year-old cousin would be arriving. Stevenson was stopped and placed under arrest. During the arrest, $140 cash was located in the driver’s side door storage area of Stevenson’s sports car.
“Mr. Stevenson’s determination to purchase sex acts from a minor is appalling,” said U.S. Attorney Tara McGrath. “Thankfully he was caught before harming an actual child. The sentence imposed today reflects the magnitude of our commitment to protecting the vulnerable from exploitation.”
“I have a simple message for all those who target children for sex online: If you go after children in California, we’ll go after you,” said Attorney General Bonta. “Today’s announcement makes it clear that child sexual exploitation will not be tolerated. I’m extremely grateful to our San Diego Human Trafficking Task Force and our federal partners for their dedication and commitment to keeping our communities safe. My office always stands ready to work with our partners across California to fight for our children and for public safety.”
“This case represents another successful collaborative effort by Homeland Security Investigations (HSI) and our law enforcement partners to swiftly identify, investigate and bring to justice individuals that seek to exploit vulnerable populations,” said Chris Davis, acting special agent in charge for HSI San Diego. “The defendant was in a position of public trust as a teacher at the time of arrest and law enforcement will not stand for this kind of abuse and misconduct; we are committed to protecting our children and our communities.”
“The San Diego Police Department is a proud member of the San Diego Human Trafficking Task Force,” said Chief Scott Wahl. “A teacher is meant to protect and nurture students, guiding them with care and respect, but instead, this individual sought to sexually exploit a school-age girl. Thankfully, due to the actions of law enforcement agencies, Stevenson was arrested before a child was victimized. The San Diego Police Department remains committed to protect our youth from the unthinkable.”
This case is being prosecuted by Assistant U.S. Attorneys Derek Ko and Andrew Sherwood.
DEFENDANTS Case Number 23CR2368-AJB
Sean Stevenson Age: 59 San Diego, CA
SUMMARY OF CHARGES
Attempted Enticement of a Minor– Title 18, U.S.C., Section 2422(b)
Maximum penalty: Life in prison, 10-year mandatory minimum
INVESTIGATING AGENCIES
Homeland Security Investigations
San Diego Human Trafficking Task Force
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San Diego State University Women’s Soccer Team Joins U.S. Attorney’s Office and City Attorney’s Office to Launch Fentanyl Awareness CampaignRead the Press Release
NEWS RELEASE SUMMARY—August 29, 2024
SAN DIEGO— The U.S. Attorney’s Office, San Diego City Attorney’s Office and the name, image, likeness (NIL) collective Aztec Link today launched a social media campaign featuring members of San Diego State University’s women’s soccer team to promote fentanyl awareness and overdose prevention. The campaign coincides with International Overdose Awareness Day being commemorated in San Diego County on August 29th.
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.
U.S. Attorney Tara McGrath will be available for interviews regarding the campaign following the International Overdose Awareness Day press conference on August 29 at 9 a.m. at the County Administration building on Harbor Drive.
The student athletes are showcased in a video filmed at various locations on SDSU’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.
This campaign uses the hashtags #TeamUp #SaveLives #InternationalOverdoseAwarenessDay. The social media public service announcement can be found here: SDSU Women’s Soccer Team - Fentanyl Awareness Video
This is the second time that the U.S. Attorney’s Office and the City Attorney’s Office have teamed up to feature SDSU student athletes in partnership with a SDSU NIL collective. For this social media campaign, the offices partnered with Aztec Link, an NIL collective dedicated to partnering SDSU student athletes with businesses and organizations for promotions and endorsements while offering fans meaningful ways to support and connect with their favorite teams and players. Aztec Link was established after the NCAA began allowing student-athletes to receive compensation for the use of their NIL in 2021.
In the public service announcements, the student athletes state the following:
“Our goal is to team up and save lives.
We love spending time on the field, but we are also students.
Students who know that fentanyl kills.
And as a community, we need to defend ourselves from the dangers of fentanyl.
Fentanyl doesn’t care about your age, or if you are just trying it for the first time.
If you are offered Adderall, Xanax, Percocet, Cocaine or any other drug not directly from a pharmacy,
It likely contains a deadly amount of fentanyl.
It’s time for us to pass on our knowledge, assist our friends, and confront this epidemic.
We need to spread the word about the dangers of fentanyl. It’s everywhere and in everything.
Know where Narcan is on campus such as Narcan vending machines.
Learn how to use Narcan and how to recognize the signs of an overdose
Such as losing consciousness, difficulty breathing, choking noises or discolored skin.
We believe in you. If you are worried about your friend overdosing and are unsure, deploy Narcan and call 911.
Let’s make it our goal to team up and save lives.
And save lives.
And let’s save lives!”
The campaign is being deployed over social media platforms, including Instagram, X (formerly Twitter), Snapchat, LinkedIn, and YouTube, by the individual student-athletes, Aztec Link, the Department of Justice, the San Diego State Athletic Department, and other coalition members.
“If you are worried about a friend who may have taken fentanyl or is unresponsive, call 911 and if necessary, administer naloxone,” said U.S. Attorney Tara McGrath. “Know the dangers and how to help others. When athletes, educators, and law enforcement team up to amplify this critical message, we can save lives.” McGrath thanked the SDSU women’s soccer team for using their influence to spread the critical message about fentanyl and naloxone.
“We lose around 800 San Diegans every year to fentanyl,” said City Attorney Mara Elliott. “While each of these deaths is tragic, I’m particularly struck by how many of those victims are college-aged students. My Office is proud to support the heroic efforts of these young women to educate their peers about the dangers of fentanyl and the lifesaving power of Narcan. This is exactly the type of communitywide effort that will be required to eradicate overdose deaths in San Diego.”
The Good Samaritan law in California provides that, “…it shall not be a crime for a person under the influence of, or to possess for personal use, a controlled substance…if that person, in good faith, seeks medical assistance for another person experiencing a drug-related overdose…” Cal. Health & Safety Code § 11376.5.
One year ago, to commemorate National Fentanyl Prevention and Awareness Day, the U.S. Attorney’s Office and the City Attorney’s Office partnered with the SDSU men’s basketball team and another NIL collective, the MESA Foundation, to create a public service announcement and media campaign that was believed to be the first such collaboration of its kind. The campaign has since received over a million impressions. For more information, visit:
https://www.justice.gov/usao-sdca/pr/san-diego-state-university-basketball-stars-join-us-attorneys-office-and-city.
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 Aztec Link is not an endorsement of any product, service, or enterprise associated with Aztec Link.
Owner of San Diego-based Shammas Funding Inc. Pleads Guilty to Fraudulently Obtaining $5 Million in Pandemic-Related LoansRead the Press Release
NEWS RELEASE SUMMARY – August 29, 2024
SAN DIEGO – Andre Shammas, owner of Shammas Funding Inc., pleaded guilty in federal court today to fraud charges, admitting that he submitted bogus applications for more than $5 million in pandemic-related loans intended to help struggling businesses during the pandemic.
Shammas admitted using his accounting and tax preparation business, Shammas Funding, to illegally apply for more than 40 loans from the Paycheck Protection Program known as PPP.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted to provide emergency financial assistance to Americans suffering economic harm as a result of the COVID-19 pandemic. The CARES Act established the PPP, under which banks would make forgivable loans to small businesses, so that those businesses could keep their doors open and employees on their payroll. If a business used the money for payroll and other eligible business expenses, the loans would be forgiven, and the federal government’s Small Business Administration would pay back the bank.
According to court documents, Shammas solicited and recruited clients of Shammas’s tax preparation business and people to apply for fraudulent PPP loans. Shammas then prepared fraudulent tax and other documentation to support fraudulent PPP loan applications. Co-conspirators then prepared and filed the PPP applications using the fraudulent documentation provided by Shammas.
Some examples include:
- One of the bogus applications submitted by Shammas and his co-conspirators was for a PPP loan on behalf of Nasser Salman and the entity LGDG (charged in federal Case No. 23-CR-0821-LL). This fraudulent PPP application generated $85,000 in PPP proceeds.
- An application for a PPP loan was submitted on behalf of Rafael Santiago and the entity Blacktie Co-Investors, Inc. (charged in federal Case No. 23-CR-01915-LAB). This fraudulent PPP application generated $117,233 in PPP proceeds.
- Another fraudulent application was submitted for a PPP loan on behalf of Wendell Pialet and the entity Hope Nuggets, LLC (charged in federal Case No. 23-CR-02156-LL). This fraudulent PPP application generated $100,000 in PPP proceeds.
To induce the Small Business Administration and banks to approve the fraudulent PPP loans, Shammas and his co-conspirators included false and fraudulent statements in the loan applications, including false representations regarding the number of employees, the average monthly payroll, and the gross receipts earned by these purported businesses.
“The Paycheck Protection Program served as a lifeline to many businesses desperately trying to stay afloat during the pandemic,” said U.S. Attorney Tara McGrath. “These charges will hold Shammas accountable for abusing this critical program.”
“As an accountant and tax preparer, Mr. Shammas is a gatekeeper who has a responsibility to do what is right for both his clients and the system. Mr. Shammas blatantly ignored that responsibility, and instead recruited clients to join his criminal conspiracy,” said FDIC OIG Special Agent in Charge Ryan L. Korner. We are proud to work alongside our law enforcement partners to protect our nation’s financial system and bring to justice individuals, like Mr. Shammas, who defraud our system to line their own pockets, while stealing benefits designated for those most in need during the pandemic.”
“Conspiring to defraud programs aimed at assisting small businesses that struggled to survive the pandemic is both unacceptable and reprehensible,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Our office is committed to ensuring that SBA funds reach those who truly need them and are not diverted by fraudulent schemes. I want to thank the U.S. Attorney’s Office and our law enforcement partners in bringing those who exploit these programs to justice.”
Shammas is scheduled to be sentenced on November 18, 2024, at 9 a.m. before U.S. District Judge Thomas Whelan.
This case is being prosecuted by Assistant U.S. Attorney Mark Conover.
DEFENDANT Case Number - 24-CR-1765-W
Andre Shammas Age: 43 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Commit Wire Fraud – Title 18, U.S.C., Section 1349
Maximum Penalty: Twenty years in prison
INVESTIGATING AGENCIES
Federal Deposit Insurance Corporation – Office of Inspector General
Homeland Security Investigations
Small Business Administration – Office of Inspector General
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Mastermind of $5 Million Unemployment Fraud Scheme and Accomplices Sentenced to PrisonRead the Press Release
NEWS RELEASE SUMMARY – August 28, 2024
SAN DIEGO – David Constantin, mastermind of a scheme to steal more than $5 million in California unemployment benefits intended to help workers affected by the pandemic, was sentenced in federal court today to five years in prison and was ordered to pay $ $5,178,276 in restitution to the state.
The co-mastermind of the scheme, Constantin Bobi Sandu, charged separately, was sentenced in 2023 to 40 months in prison.
According to Constantin’s plea agreement, between July 2020 and August 2022, Constantin and Sandu conspired with 213 co-conspirators to fraudulently obtain at least $5,178,276 in California unemployment insurance benefits.
Thirteen other defendants were charged on the same indictment as Constantin with wire fraud and money laundering related to the unemployment fraud scheme. Four of the defendants were sentenced on July 31, 2024, and ordered to pay restitution to the state of California. They are:
- Eduard Buse, 34 months and $244,050;
- Constantin Iosif Constantin, 32 months and $281,000;
- Leonard Miclescu, 15 months and $34,650; and
- Filip Nicolae, 13 months and $26,250.
Additional defendants include:
- Florentina Sima, wife of Buse, who was sentenced on May 29, 2024 to 15 months in custody and $28,350 in restitution; and
- Florin Nicolae, who pleaded guilty and is scheduled to be sentenced on August 30, 2024, at 9 a.m.
According to admissions in their plea agreements, these defendants submitted fraudulent applications to the California Economic Development Department, falsely claiming to be United States citizens who had been employed full time prior to the pandemic, and who had earned substantial income. To substantiate these claims, the defendants submitted false documents, including fake Forms W-2 purporting to be from their prior employers, phony health insurance cards, and fake utility bills to support their claimed residence in California.
These defendants caused the California Employment Development Department to pay out hundreds of thousands of dollars in fraudulent benefits to individuals who were not entitled to those benefits. Many of them laundered their fraudulent proceeds by transferring funds to Romania.
In some cases, while claiming that they needed the funds to take care of their families, the defendants used the proceeds of the fraud to purchase luxury items. Buse, for example, purchased a 2020 BMW for more than $100,000 and shipped it to Romania.
Other defendants are being sought by the United States so that they can be held accountable.
This case is being prosecuted by Assistant U.S. Attorneys Jessica Adeline Schulberg and Valerie H. Chu.
DEFENDANTS Case Number 23CR2090-RBM
David Constantin, Aka Vlad Alexandru Age: 28 Transient, Romanian
Eduard Buse Age: 31 Transient, Romanian
Leonard Miclescu Age: 49 Transient, Romanian
Constantin Iosif Constantin Age: 31 Transient, Romanian
Florentina Sima Age: 30 Transient, Romanian
Filip Nicolae Age: 31 Transient, Romanian
Florin Nicolae Age: 34 Transient, Romania
*Additional defendants are not in custody and their names are redacted
SUMMARY OF CHARGES
Title 18, U.S.C. § 1349 and 1343 - Conspiracy to Commit Wire Fraud
Maximum penalty: Thirty years in prison, a fine of $1 million or both;
Title 18 U.S.C. § 1943 – Wire Fraud
Maximum penalty: Thirty years in prison, a fine of $1 million or both;
Title 18 U.S.C. § 1956(a)(2)(A) — Laundering Monetary Instruments
Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater;
Title 18 U.S.C. § 1956(a)(2)(B)(i) – Laundering Monetary Instruments
Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater;
Title 18 U.S.C. §§ 981(a)(1)(C) and 982(a)(1), and Title 28, U.S.C. § 2461(c) - Criminal Forfeitures
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Police Department Economic Crimes Unit
IRS Criminal Investigation
California Employment Development Department Investigative Division
Department of Labor Office of Investigator General
U.S. Department of Homeland Security
San Diego Man Charged with Using Explosives to Burglarize ATMsRead the Press Release
NEWS RELEASE SUMMARY – August 23, 2024
SAN DIEGO – Son Nguyen of San Diego was arrested early today and charged in federal court with two counts of damaging property in connection with using explosives on two ATMs.
Nguyen, who unsuccessfully attempted to steal money from the machines, was tracked through surveillance video, vehicle registration and facial features, the complaint said. He was taken into custody by the FBI at his Mira Mesa residence and is scheduled to make his first appearance in federal court Monday.
According to the complaint, at approximately 3:24 a.m. on June 8, 2024, Nguyen drove up to an ATM outside of California Coast Credit Union on Governor Drive in San Diego. Nguyen got out of his car and brought a five-gallon blue plastic container with a white spout to the area in front of the ATM. He then appeared to insert a black polyvinyl chloride plastic (“PVC”) hose into the ATM. A short time later, a small explosion occurred inside the ATM. Despite efforts to pull money out of the machine, Nguyen left empty handed.
San Diego Police officers responded to an alarm at the credit union and observed a white PVC pipe connected to a black PVC pipe with two batteries taped to it. They also observed pieces of what looked like a blue balloon around the ATM. Approximately 20 feet from the ATM was another plastic pipe.
According to the complaint, a few weeks later, at approximately 2:10 a.m. on June 28, 2024, Nguyen drove up to another ATM in Rancho Bernardo outside of a First Citizen’s Bank branch in San Diego. He then repeated the same steps. After electrical components caught fire and smoke started coming out of the ATM, Nguyen returned and attempted to extract cash from the machine but was unsuccessful.
Investigators used surveillance camera video to track the defendant and his vehicle. While serving a court-authorized search warrant at Nguyen’s home, investigators found gas, black powder, potassium nitrate sulfur, explosive pre-cursor chemicals, a paper that explains how to make black powder and a firearm in Nguyen’s residence, among other equipment and clothing items consistent with those used during the attempts.
“Fortunately, neither of these incidents resulted in injury or successful theft of cash,” said U.S. Attorney Tara McGrath. “With the discovery of chemicals and equipment in the search today, future attempts were also thwarted.”
This case is being prosecuted by Assistant U.S. Attorneys Andrew Sherwood and Shital Thakkar.
DEFENDANT Case Number 24-mj-03215
Son Thanh Nguyen Age: 44 San Diego, CA
SUMMARY OF CHARGES
Use of an Explosive to Damage Property – 18 U.S.C., Section 844(i)
Maximum penalty: Twenty years in prison
INVESTIGATING AGENCIES
Federal Bureau of Investigation
San Diego Police Department
San Diego County Sheriff’s Department Bomb Squad
City of San Diego’s Hazmat Team
A complaint itself is not evidence that the defendant committed the crimes charged. The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.
Justice Department Sues California Towing Company for Auctioning a Servicemember’s Vehicle in Violation of Federal LawRead the Press Release
The Justice Department filed a lawsuit today against Tony’s Auto Center Inc., doing business as Tony’s Auto Center, in Chula Vista, California, alleging that it illegally auctioned off a deployed U.S. Navy Lieutenant’s car, in violation of the Servicemembers Civil Relief Act (SCRA). The SCRA 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.
“When towing companies ignore their legal obligations under the SCRA, it can have serious financial consequences for servicemembers,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We hope that bringing this case encourages other towing companies to review and improve their policies and ensure that the rights of all servicemembers are honored and respected.”
“The law provides specific and necessary protections to active duty servicemembers so they can dedicate themselves to protecting our freedom,” said U.S. Attorney Tara McGrath for the Southern District of California. “As the filing of this complaint demonstrates, we will fight to enforce those protections.”
The department’s lawsuit, which was filed today in the Southern District of California, alleges that Tony’s Auto Center illegally auctioned the Lieutenant’s 2011 Mazda 6 while he was deployed at sea aboard the USS Bunker Hill. Prior to deployment, the Lieutenant placed some personal belongings in his car and parked it in front of a friend’s house. While the Lieutenant was at sea, Chula Vista Police Department impounded the car due to 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 the Lieutenant’s car at auction without obtaining a court order authorizing the sale.
According to the complaint, in March 2023, the Lieutenant returned home from deployment to find that his car had been towed. He then contacted Tony’s Auto and learned that they had sold his car. Even though he no longer had the car, he had to continue making his monthly car loan payments to Navy Federal Credit Union, which totaled over $2,500.
Individuals with information that may be relevant to this case should call the U.S. Attorney’s Office for the Southern District of California at 619-546-7516.
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 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. Attorneys’ 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 department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
President of UMI Learning Center Sentenced to 27 Months in Prison, Ordered to Pay $3.7 Million back in Stolen Childcare BenefitsRead the Press Release
NEWS RELEASE SUMMARY – August 21, 2024
SAN DIEGO – Mohamed Muriidi Mohamed was sentenced in federal court today to 27 months in prison for participating in a childcare-benefits fraud scheme that bilked a California welfare and benefits program of millions of dollars.
At today’s hearing, U.S. District Judge Ruth Bermudez Montenegro also ordered Muriidi to pay $3.7 million in restitution to Child Development Associates.
The Department of Health and Human Services (HHS) funds a program known as “Alternative Payment Program/Stage 2 Childcare.” This childcare benefits program allows eligible parents to select a licensed childcare provider that best fit a family’s needs. In San Diego, this program is administered by two contractors: Child Development Associates (CDA) and the Young Men’s Christian Association (YMCA). CDA and YMCA disburse the funding from HHS and the state of California directly to the designated childcare providers. In administering the program, CDA and YMCA require verification forms to be completed by the parent and the parent’s employer and/or school.
Muriidi and his three co-defendants fraudulently caused CDA and YMCA to pay out millions in childcare benefit program funds by falsely verifying that parents were working or attending school at the UMI Learning Center, a vocational and language school located on University Avenue, although the parents were not actually participating in classes or employment as claimed. As part of the scheme, Muriidi also issued paychecks to make it appear that the parents were working at UMI but told the parents not to cash them. Meanwhile, childcare providers submitted daily childcare attendance forms falsely claiming that childcare was provided for days and hours when the parents were supposedly at UMI Learning Center for work or school. In exchange for these false verification forms, parents were expected to pay $200 to UMI Learning Center each month, and the childcare providers were expected to split the childcare benefit program funds they received with the parents. The defendants’ scheme caused CDA and YMCA to pay out $3.7 million dollars in childcare benefit program funds to approximately 150 households.
Muriidi and his wife, co-defendant Amina Abdirazak Omar, received childcare benefits for their own children. Muriidi signed his own and his wife’s verification forms for their own benefits under his alias to hide the fact that he was the one falsely verifying their presence at UMI. Amina Omar and her sister, co-defendant Osob Abdirazak Omar, and their brother, co-defendant Omar Omar, submitted false timesheets claiming Osob Omar and Omar Omar were providing childcare for Muriidi and Amina Omar’s children for days and hours they were not.
Co-defendants Amina Abdirazak Omar, Osob Abdirazak Omar and Omar Omar have also pleaded guilty to the same charge. Osob Omar was sentenced on July 26, 2024, to 12 months and 1 day in custody and ordered to pay $298,910 in restitution. Omar Omar was sentenced on August 2, 2024, to 90 days in custody and ordered to pay $101,153 in restitution. Amina Omar is scheduled to be sentenced on October 4, 2024.
“These defendants stole money intended to provide safe care for children of working parents,” said U.S. Attorney Tara McGrath. “The U.S. Attorney’s Office is committed to safeguarding government funded programs like this one, so families can better manage the heavy burden of childcare expenses.”
“These thieves organized a financial scheme with the sole purpose of lining their pockets with ill-gotten money,” said Christopher A. Davis, acting special agent in charge for HSI San Diego. “The defendants in this case stole from the government and American taxpayers. We are committed to identifying fraudsters and bringing them to justice.”
This case is being prosecuted by Assistant U.S. Attorney Valerie H. Chu and Special Assistant U.S. Attorney Lisa J. Sanniti.
DEFENDANTS Case Number 23CR0552-RBM
Mohamed Muriidi Mohamed Age: 47 Spring Valley
Amina Abdirazak Omar Age: 41 Spring Valley
Osob Abdirazak Omar Age: 33 San Diego
Omar Omar Age: 26 San Diego
SUMMARY OF CHARGES
Wire Fraud and Theft Conspiracy - Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and fine of the greater of $250,000, or twice the pecuniary gain or loss
INVESTIGATING AGENCIES
U.S. Department of Homeland Security, Homeland Security Investigations
U.S. Department of Health and Human Services, Office of the Inspector General
U.S. Department of Housing and Urban Development, Office of the Inspector General
Man Who Smuggled Seven Undocumented Immigrants Through Sewer Tubes Between Mexico and the United States Sentenced to PrisonRead the Press Release
NEWS RELEASE SUMMARY – August 19, 2024
SAN DIEGO – Kevin Noe Campos Villa of Tijuana was sentenced in federal court today to seven months in prison for human smuggling.
Campos previously pleaded guilty, admitting he guided seven unauthorized immigrants through sewer pipes during heavy rains. Several had to be rescued from the Tijuana River by San Diego lifeguards.
Campos was arrested on January 22, 2024, after U.S. Border Patrol agents observed Campos directing the individuals from Mexico into the United States through the pipes about two miles west of the San Ysidro Port of Entry during heavy rains.
When confronted by Border Patrol agents, Campos and three of the immigrants he was guiding ran to avoid apprehension. While attempting to escape, they fell into the Tijuana River, known to be contaminated, and had to be rescued by San Diego lifeguards.
According to court records, two of the unauthorized immigrants who were rescued stated that they feared for their lives when crossing the river because they did not know how to swim. One stated that he was swept away by the river’s current and was able to grab and hold onto a tree branch until his rescue.
Sewer tubes between the United States and Mexico have grates to prevent individuals from illegally entering the United States. During heavy rain, the grates are opened to let water flow through the sewer tubes without damaging the grates. Due to heavy rain that was occurring in the area at the time, the grates were open, and Campos used the opportunity to smuggle the unauthorized immigrants into the United States.
Court documents established Campos agreed to guide the group in the January event, and in exchange he would have his own smuggling fee reduced to $6,000. Campos also admitted that he has been working for smugglers by building ladders to smuggle people across the U.S.-Mexico border fence.
This case is being prosecuted by Assistant U.S. Attorney Jessica Adeline Schulberg.
DEFENDANT Case Number 24CR0290-LL
Kevin Noe Campos Villa Age: 20 Tijuana, Mexico
SUMMARY OF CHARGES
Title 8, United States Code, §1324(a)(1)(A)(i)— Bringing in Illegal Aliens at a Place other than a Designated Port of Entry
Maximum penalty: Ten years in prison; $250,000 fine
INVESTIGATING AGENCIES
United States Border Patrol
San Diego Lifeguard River Rescue
San Diego Man Indicted for Sending Threatening Communication to LGBTQ VictimRead the Press Release
NEWS RELEASE SUMMARY – August 13, 2024
SAN DIEGO – George Joseph Wellinger II of San Diego made his first appearance in federal court today to face charges that he sent a threatening email to a member of the LGBTQ community.
The victim was targeted after being interviewed for a KTLA news report about a hate-inspired murder in Lake Arrowhead in 2023.
According to the indictment, the email called the victim “another alphabet clown that wants to take a dirt nap, too,” and included a link to the KTLA news report which featured the victim and others discussing the murder of a Lake Arrowhead business owner who had been gunned down for hanging a Pride flag in her business.
The email continued: “We know what you look like and know where are you are....only a matter of time....Love it....get ur ghey on sister....scissor it up....we coming for ur rainbow azz. Click Click!!!!;
Wellinger was arraigned on an indictment charging him with Transmitting a Threatening Communication. The indictment alleges Wellinger targeted his victim because of her sexual orientation.
“Hate crimes are designed to terrify both the victim and the community,” said U.S. Attorney Tara McGrath. “The U. S. Attorney’s Office works tirelessly on prosecuting these cases to send our own message: San Diego is no place for hate.”
“Today’s indictment serves as a reminder there is no room for hate in our community,” said Stacey Moy, Special Agent in Charge for the FBI San Diego Field Office. “Hate crimes remain one of the top FBI priorities and we will continue to protect and safeguard our communities.”
Wellinger was taken into custody early today and at today’s hearing, U.S. Magistrate Judge Barbara L. Major set a $50,000 bond and ordered home detention and electronic monitoring.
If you or anyone you know believes you have been the victim of a hate crime, please contact the FBI at https://tips.fbi.gov/home. Assistant U.S. Attorneys Jacqueline M. Jimenez and Alicia Williams are prosecuting this case.
DEFENDANT Case Number: 24-CR-1591
George Joseph Wellinger II Age: 48 San Diego, CA
CHARGE
Transmitting a Threatening Communication - Title 18 U.S.C., § 875(c)
Maximum penalty: Five years in prison
INVESTIGATING AGENCY
Federal Bureau of Investigation
For more information and resources about the department’s work to combat hate crimes, visit https://www.justice.gov/hatecrimes.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
San Diego Man Pleads Guilty to Sexual Abuse of 14-Year-Old Girl on an AirplaneRead the Press Release
NEWS RELEASE SUMMARY – August 12, 2024
SAN DIEGO – Ryan Coffey of San Diego pleaded guilty in federal court today, admitting that he sexually abused the 14-year-old girl seated next to him on an American Airlines flight from Charlotte, North Carolina to San Diego, California.
Coffey was indicted on March 15, 2024, for Sexual Abuse of a Minor and Abusive Sexual Contact stemming from his actions on an evening flight on January 7, 2023. Coffey, who was 31 years old at the time of the offense, pleaded guilty, admitting that he gave the girl rum and touched her inner thigh and breasts. The defendant did not know the victim.
“Thanks to the courage of a brave girl who reported what happened in the dark on a plane, and swift engagement from law enforcement, this defendant was brought to justice,” said U.S. Attorney Tara McGrath. “The U.S. Attorney’s Office is committed to protecting the public in the air, on the ground, or at sea.”
“Ryan Coffey’s conduct was abhorrent,” said Acting FBI San Diego Special Agent in Charge TJ Holland. “The FBI, along with our dedicated law enforcement partners remain committed to using all tools available to follow the evidence and bring those who commit crimes against children to justice.”
This case is being prosecuted by Assistant U.S. Attorneys Andrew Sherwood and Katie Grammenidis.
DEFENDANTS Case Number 24cr505-AJB
Ryan Coffey Age: 33 San Diego, CA
SUMMARY OF CHARGES
Abusive Sexual Contact Title 18, U.S.C., Section 2244(a)(3)
Maximum penalty: Two years in prison
INVESTIGATING AGENCY
Federal Bureau of Investigation
Drug-Dealing Gun Trafficker Sentenced to Nine Years in Prison – Highlighting Arizona-to-San Diego Illegal Gun PipelineRead the Press Release
NEWS RELEASE SUMMARY – August 9, 2024
SAN DIEGO – Jarez Roberts, a felon and known gang member, was sentenced in federal court today to nine years in prison for committing various drug and gun-related crimes, including dealing methamphetamine while armed, being a felon in possession of firearms, and unlawfully transporting illegally-acquired firearms from Arizona to San Diego.
The case against Roberts was initiated in August 2022, after the San Diego Police Department recovered a loaded handgun from a dumpster in the College Grove Area. ATF investigators were then able to trace the firearm to a sale at Randall’s Sporting Goods in Glendale, Arizona. The handgun had been purchased only two days prior to its recovery in San Diego.
According to his plea agreement, in 2022 Roberts repeatedly coordinated the illegal purchase of handguns from an Arizona resident, later identified as Lillian Shingleton. Roberts then drove to Arizona on multiple occasions to acquire the handguns and transport them back to San Diego. Once in San Diego, Roberts used one of the firearms to protect himself while he dealt methamphetamine.
On June 6, 2024, Shingleton pleaded guilty to being Roberts’ source of firearms in Arizona. Shingleton was arrested in Arizona and removed to San Diego to face federal charges for aiding and abetting Roberts. According to her plea agreement, Shingleton knew that Roberts was unable to lawfully purchase firearms for himself and that she was paid a commission for each gun she acquired for him. As part of her plea, Shingleton also agreed that federal prosecutors could prove that Roberts was a felon and a gang member.
The Roberts-Shingleton connection is just one example of recent federal prosecutions involving firearms unlawfully obtained in Arizona and trafficked to San Diego.
Just last month, on July 29, 2024, Jacob Gall-Carrizosa pleaded guilty to transporting firearms without a federal license. According to his plea agreement, Gall-Carrizosa traveled from San Diego to Arizona on multiple occasions between 2021 and 2022, to unlawfully buy eleven different firearms. To complete each purchase, Gall-Carrizosa used an Arizona Identification Card that falsely claimed he was an Arizona resident. After purchasing the firearms in Yuma, he brought them back to San Diego for illegal resale. One of the firearms illegally sold by Gall-Carrizosa was then recovered by law enforcement in Tijuana, Mexico.
“Trafficking firearms across state lines creates a dangerous pipeline for illegal weapons,” said U.S. Attorney Tara McGrath. “By bringing cases like these to justice, we are keeping guns out of the wrong hands.”
“The primary goal of ATF’s firearms trafficking strategy is to prevent violent crime by disrupting and dismantling the firearms trafficking organizations and networks responsible for supplying violent offenders with crime guns,” said Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge of Los Angeles Field Division Christopher Bombardiere. “ATF’s strategy is multi-faceted and includes the inspection of licensed gun dealers, targeting and arresting straw purchasers, and a greater intelligence-driven emphasis by identifying and targeting these individuals responsible for organizing and directing firearms trafficking operations. ATF remains committed to arresting those who illegally supply firearms to prohibited individuals, and by deterring the diversion of firearms from lawful commerce into the illegal market.”
The U.S. Attorney’s Office has recently fortified efforts to address gun violence though increased prosecutions. The office has so far charted a 40 percent increase in gun-related prosecutions in 2024 versus 2023, with five months still remaining in the year. Given the proliferation of ghost guns, the office has also emphasized prosecutions involving these homemade weapons that are very difficult to trace. Prosecutors have charged more than 30 ghost gun-related cases since the beginning of the year.
These cases are being prosecuted by Assistant U.S. Attorneys Andrew R. Haden and Allison B. Rogge.
DEFENDANTS
Case Number 22cr2488-TWR
Jarez Roberts Age: 44 San Diego, CA
Case Number 24cr249-TWR
Lillian Shingleton Age: 38 Phoenix, Arizona
Case Number 24cr1252-AGS
Jacob Gall-Carrizosa Age: 39 San Diego, CA
SUMMARY OF CHARGES
Possession of Methamphetamine with Intent to Distribute – Title 21, U.S.C. Section 841
Maximum penalty: Forty years in prison and $5 million fine
Possession of a Firearm in the Furtherance of Drug Trafficking Activity – Title 18, U.S.C. Section 924(c)
Maximum penalty: Life in Prison, mandatory five years and $250,000 fine
Felon in Possession of Firearms – Title 18, U.S.C. Section 922(g)(1)
Maximum penalty: Ten years in prison and $250,000 fine
Unlicensed Transportation of Firearms – Title 18, U.S.C. Section 922(a)(3)
Maximum penalty: Five years in prison and $250,000 fine
INVESTIGATING AGENCY
Bureau of Alcohol Tobacco Firearms & Explosives
These cases are 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.
Jury Convicts Two for Conspiring to Traffic Counterfeit Levi’sRead the Press Release
NEWS RELEASE SUMMARY – August 2, 2024
SAN DIEGO – After a three-day trial, a federal jury has convicted Marin Morales-Espinoza and Francisco Alvarado-Ramirez of conspiracy to traffic counterfeit Levi’s jeans labels, tags, rivets and buttons to make counterfeit Levi’s jeans.
According to the evidence presented at trial, Morales paid people to smuggle counterfeit Levi’s pieces and parts into the United States from Mexico at the Calexico Port of Entry. Another co-conspirator paid Morales to drive the pieces to his home in Los Angeles. That co-conspirator brought the pieces to Alvarado at his factory in the Garment District to make the counterfeit Levi’s jeans.
Tens of thousands of counterfeit Levi’s tags, buttons and rivets were seized at the Port of Entry. Over 2,000 completed counterfeit Levi’s jeans were seized from Alvarado’s factory. These fake Levi’s were sold at local swap meets by other co-conspirators. These are photos of the counterfeit parts:
The Senior Director of Global Brand Protection for Levi Strauss & Co. testified that none of the co-conspirators worked for Levi’s. He walked the jury through the seized merchandise to explain how they were not genuine Levi’s products.
“Counterfeit goods fool consumers and hurt retailers by diluting the value of a product and its trademark,” said U.S. Attorney Tara McGrath. “This case demonstrates the Department of Justice’s commitment to protecting consumers and retailers from fraud.”
The defendants are scheduled to be sentenced November 1, 2024, at 9:30 a.m. before U.S. District Judge Jinsook Ohta.
This case is being prosecuted by Assistant U.S. Attorneys Melanie Pierson and Sarah Akhtar, and Special Assistant U.S. Attorney Lisa Sanniti.
DEFENDANTS Case Number 23cr1356-JO
Marin Morales-Espinoza Age: 63 Calexico, CA
Francisco Alvarado-Ramirez Age: 50 Los Angeles, CA
SUMMARY OF CHARGES
Conspiracy to Traffic in Counterfeit Goods and Labels – Title 18, U.S.C., Section 2320
Trafficking in Counterfeit Labels – Title 18, U.S.C., Section 2320(a)(2)
Trafficking in Counterfeit Goods - Title 18, U.S.C., Section 2320(a)(1)
Maximum penalty: Ten years in prison and $2 million fine
INVESTIGATING AGENCY
Homeland Security Investigations
Five Chinese Nationals Indicted for Scamming Seniors Out of More Than $27 MillionRead the Press Release
NEWS RELEASE SUMMARY – July 31, 2024
SAN DIEGO – An indictment was unsealed today alleging that five individuals participated in a massive, complex fraud and money laundering scheme that resulted in losses of more than $27 million to over 2,000 seniors.
During a coordinated law enforcement operation this morning in Los Angeles, California and Las Vegas, Nevada, about 60 federal, state and local law enforcement officials arrested four of the defendants—Zhao Wang of Henderson, Nevada; Jiandong Chen of Pomona, California; Jun Li of West Covina, California; and Xin Wang of San Gabriel, California—and searched their homes. The fifth defendant, Youfei Gong, was arrested on April 9, 2024, at his home in San Gabriel, California and was in custody on state charges.
According to the indictment and publicly filed documents, the five defendants and their co-conspirators operated a multinational organized fraud ring targeting elderly victims throughout the United States.
The indictment said conspirators contacted victims through unsolicited pop-up ads, emails and phone calls designed to get victims to contact scam call centers in India. The conspirators used social engineering techniques to build trust with victims. In many cases, the conspirators had victims install remote desktop software that the conspirators used to gain remote access to victims’ computers. After building trust with a victim based on fraudulent pretenses, the conspirators used technical support, government impersonation, bank impersonation and/or refund scams to induce victims to send money to other members of the conspiracy, including the five defendants charged in the indictment.
At the direction of conspirators, victims sent wire transfers or cash in express mail packages to locations throughout Southern California, Nevada and elsewhere. The defendants provided fake names and addresses corresponding with retail locations, including CVS Pharmacy locations, where packages were picked up. The defendants and co-conspirators picked up money-laden packages using fake IDs.
According to the indictment, the defendants specifically targeted elderly Americans. After receiving the victims’ money, the defendants laundered it through cryptocurrency transactions to their India-based co-conspirators. As defendant Xin Wang stated in a text message:
The FBI uncovered the multinational conspiracy showing the coordination between the defendants in the United States and their India-based co-conspirators who were in direct contact with victims. Between just 2021 to 2023, agents identified approximately 2,000 victims who lost more than $27 million to the conspirators. The indictment said the conspiracy continued through June 2024.
“Every day swindlers entangle unsuspecting seniors into scams to steal their hard-earned savings,” said U.S. Attorney Tara McGrath. “We urge everyone to use caution and consult with others before sending money to strangers they know only through phone calls, texts, or a computer.”
“Southern California is sadly a target rich environment for foreign and domestic scam artists who relentlessly prey on vulnerable Americans and their bank accounts,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Today's arrests follow hard work by many dedicated law enforcement agencies and will aid our continuing efforts to educate potential victims to avoid responding to strangers who claim to care about them, and never give or send hard-earned money in response to a solicitation.”
“FBI San Diego Elder Justice Task Force, along with FBI LA, has worked tirelessly to bring justice to individuals who target, exploit, and victimize our most vulnerable citizens,” said Stacey Moy Special Agent in Charge for the Federal Bureau of Investigation San Diego Field Office. “The FBI remains resolute in our commitment to disrupt and dismantle foreign-based fraud schemes that prey on our older Americans. We will continue to work side by side with our law enforcement partners to deter and defeat organized fraud rings, no matter where they are located.”
This case was investigated by the San Diego Elder Justice Task Force and its member agencies, including the U.S. Attorney’s Office, Federal Bureau of Investigation, San Diego County District Attorney’s Office, Carlsbad Police Department, San Diego Police Department, and the California Highway Patrol.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available through the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). You can also report fraud to any local law enforcement agency or on the FBI’s Internet Crime Complaint Center at www.ic3.gov.
This case is being prosecuted by Assistant U.S. Attorney Kevin Mokhtari.
DEFENDANTS Case Number 24CR1317-RSH
Zhao Wang, aka “Oscar” Age: 40 Henderson, NV
Jiandong Chen, aka “Little Tiger” Age: 40 Pomona, CA
Jun Li Age: 40 West Covina, CA
Xin Wang Age: 36 San Gabriel, CA
Youfei Gong Age: 29 San Gabriel, CA
SUMMARY OF CHARGES
Conspiracy to Commit Mail and Wire Fraud – Title 18, U.S.C., Sections 1349, 2326
Maximum Penalties: Forty years in prison; $1 million fine
Conspiracy to Launder Monetary Instruments – Title 18, U.S.C., Sections 1956(a)(1)(A)(i), 1956(a)(1)(B)(i) and 1956(h)
Maximum Penalties: Twenty years in prison; maximum fine of $500,000 or twice the amount laundered
Criminal Forfeiture – Title 18, U.S.C., Sections 981(a)(1)(C), 982(a)(1), 982(a)(2)(a), 2328 and Title 28, U.S.C., Section 2461(c)
INVESTIGATING AGENCIES
Federal Bureau of Investigation
Federal Deposit Insurance Corporation – Office of Inspector General
Homeland Security Investigations
San Diego County District Attorney’s Office
San Diego County Sheriff’s DepartmentSan Diego Police Department
San Diego Elder Justice Task Force
Chino Police Department
Coronado Police Department
Escondido Police Department
Glendora Police Department
Long Beach Police Department
Orange County Sheriff’s Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Man Sentenced for Forcing Three Women to Travel to San Diego for Prostitution; Lifeguard Makes Different Kind of RescueRead the Press Release
NEWS RELEASE SUMMARY – July 25, 2024
SAN DIEGO – David Warren of Las Vegas was sentenced in federal court today to 10 years in prison for coercing three women to engage in prostitution and transporting them from Las Vegas to San Diego for that purpose.
Authorities found the women after one victim approached a San Diego lifeguard to ask for help on September 12, 2023, at Mission Beach. The victim said she was trafficked from Las Vegas and wanted help. The lifeguard immediately notified San Diego Police. The San Diego Human Trafficking Task Force quickly located and recovered the other two victims at a local hotel and arrested Warren.
According to his plea agreement, Warren preyed on and trafficked the victims—one of whom was homeless and vulnerable to substance abuse--through violence, threats of violence, and emotional abuse. Once Warren and the women were in San Diego, he took the victims to various beaches to solicit customers.
“Profiteers exploit victims of human trafficking anywhere they think they can take advantage, even on the beach in daylight,” said U.S. Attorney Tara McGrath. “This brave woman saved herself and others by trusting a San Diego lifeguard who immediately jumped into action.”
“The DOJ-led San Diego Human Trafficking Task Force is laser-focused on holding human traffickers accountable in San Diego County,” said California Attorney General Rob Bonta. “We must work together across every level of government and society to help bring human trafficking to an end. No one agency can do it all alone. I am grateful to our local, state and federal partners for holding traffickers accountable and creating a real, lasting impact on survivors.”
“This circumstance was not the typical rescue our lifeguards perform,” said Marine Safety Captain Maureen Hodges. “However, we were glad to be of service and keep this victim safe while notifying San Diego Police that she needed assistance.”
“The San Diego Police Department is a proud member of the San Diego Human Trafficking Task Force (SDHTTF),” said Chief Scott Wahl. “The suspect in this case used violence and manipulation to control his victims. Thankfully, due to the quick action of the SDPD and SDHTTF, Warren was arrested and all three victims in the case were rescued. SDPD remains committed to utilizing every resource to rescue victims of human trafficking, while holding their traffickers accountable.”
If you are living or working under threat of violence or extortion, or you suspect someone else may be, call the National Human Trafficking Resource Center toll free, 24/7 Hotline: CALL: (888) 373-7888 or TEXT BeFree or 233733.
This case was prosecuted by Assistant U.S. Attorneys Derek Ko and Lyndzie M. Carter.
DEFENDANT Case Number 23-cr-2102-JLS
David Warren Age: 37 Las Vegas, NV
SUMMARY OF CHARGES
Transportation for Purpose of Prostitution – Title 18, U.S.C., Section 2421(a)
Maximum penalty: Ten years in prison and $250,000 fine
Coercion and Enticement – Title 18, U.S.C., Section 2422(a)
Maximum penalty: Twenty years in prison and $250,000 fine
INVESTIGATING AGENCIES
Homeland Security Investigations
San Diego Police Department
San Diego Human Trafficking Task Force
City of San Diego, Fire-Rescue Department, Lifeguard Services Division
Nineteen Alleged Members of Human Smuggling Organization Charged for Illegally Bringing Migrants into the U.S. via Personal WatercraftRead the Press Release
NEWS RELEASE SUMMARY – July 24, 2024
SAN DIEGO – Nineteen alleged members of a human smuggling organization have been criminally charged for coordinating the smuggling of dozens of unauthorized migrants into the U.S. from Mexico, mostly aboard personal watercraft via the Pacific Ocean. Nine of the 19 are in custody. A grand jury returned an indictment against fourteen members of the organization, and a complaint was filed against an additional five.
“The Justice Department is committed to dismantling transnational human smuggling operations that prey on migrants and threaten our national security,” said Deputy Attorney General Lisa Monaco. “Nefarious organizations like the one charged in this case can expect to answer for their alleged crimes in American courtrooms.”
“Human smuggling cases are a top priority because lives are at stake,” said U.S. Attorney Tara McGrath. “Whether racing a jet ski up the coast without lifejackets or hauling a tractor trailer packed with people, smugglers expose vulnerable migrants to extreme danger and prioritize profit over human life.”
The nine arrested defendants were taken into custody at ports of entry or elsewhere in San Diego during a multi-agency enforcement effort last week; the remaining defendants are fugitives. Federal agents served court-authorized search warrants at suspected stash houses in San Diego and in Los Angeles. Among other things, agents seized over $100,000 in U.S. currency and two boxes of ammunition during the enforcement operations. Agents previously seized more than $120,000 during the investigation.
According to the indictment and complaint, the defendants participated in a long-running conspiracy to illegally bring people from Mexico into the U.S. by land and sea. The organization arranged for transport from Mexico by personal watercraft to coastal areas such as Sunset Cliffs, Bird Rock in La Jolla, and Imperial Beach, often at night and in dangerous conditions. Smugglers favor personal watercraft for their speed and ability to approach shore quickly, allowing rapid drop-offs and evasion of authorities.
The charging documents allege the defendants were also responsible for transporting the migrants further within the U.S., whether driving themselves or coordinating with other drivers, including to Los Angeles, Santa Barbara and Las Vegas. The organization allegedly charged between approximately $7,000 and $16,000 per smuggled person and transported tens of thousands of dollars in profits from San Diego to Mexico.
“Every aspect of human smuggling - whether it be by land, sea or aircraft - puts lives at risk,” said Christopher Davis, acting special agent in charge for HSI San Diego. “HSI and our partner agencies are committed to curbing this illegal activity that’s solely designed to enrich greedy smugglers’ financial pockets.”
“This indictment serves as notice to those transnational criminal organizations operating along our coastal border that it is only a matter of time before they are brought to justice,” said San Diego Sector Chief Border Patrol Agent Patricia McGurk-Daniel. “Our focus continues to be on protecting our nation, and we will leverage all available resources to hold these criminals accountable for their actions.”
Assistant U.S. Attorneys Peter Horn, David Fawcett (who is detailed to Joint Task Force Alpha, a partnership between the Department of Justice’s Criminal Division and the Department of Homeland Security) and Lawrence Casper for the Southern District of California are prosecuting the case.
The prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
These actions are also the result of coordinated efforts of Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland established JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to combat the rise in prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. JTFA comprises detailees from U.S. attorneys’ offices along the southwest border, including the Southern District of California, the District of Arizona, the District of New Mexico, and the Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by the Human Rights and Special Prosecutions Section, and supported by the Office of Prosecutorial Development, Assistance and Training; the Narcotic and Dangerous Drug Section; the Money Laundering and Asset Recovery Section; the Office of Enforcement Operations; the Office of International Affairs; and the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, DEA, and other partners. To date, JTFA’s work has resulted in more than 310 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; more than 250 U.S. convictions; more than 185 significant jail sentences imposed; and forfeitures of substantial assets.
DEFENDANTS IN CUSTODY
Case Number 24-CR-1448-AJB
Edgar Jimenez Macias Age: 33 Tijuana, Mexico
Alex Ceja Guzman, aka “Alejandro, aka “Gordo” Age: 30 Tijuana, Mexico
Tobias Julian Burgara Gonzalez Age: 32 Tijuana, Mexico
Junior Zavala Ramirez, aka “JR” Age: 34 Tecate, Mexico
Case Number 24-MJ-2728-SBC
Ivan Pulido Jauregui Age: 49 Nayarit, Mexico
Manuel Gonzalez Lopez, aka “Tortillero” Age: 26 Nayarit, Mexico
Jesus Misael Molina Flores Age: 20 Nayarit, Mexico
Alexis Adrian Villela Inda Age: 29 Nayarit, Mexico
Mateo Adrian Alduenda Gutierrez Age: 26 Nayarit, Mexico
SUMMARY OF CHARGES
Case Number 24-CR-1448-AJB
Conspiracy To Bring in Aliens for Financial Gain – Title 8, U.S.C., Section 1324(a)(2)(B)(ii); Title 18, U.S.C., Section 371
Bringing in Aliens for Financial Gain and Aiding and Abetting – Title 8, U.S.C., Section 1324(a)(2)(B)(ii); Title 18, U.S.C., Section 2
Penalties (for bringing in aliens for financial gain and aiding and abetting): Mandatory minimum of five years and maximum of 15 years in prison, and up to a $250,000 fine
Case Number 24-MJ-2728-SBC
Conspiracy To Bring in Aliens for Financial Gain – Title 8, U.S.C., Section 1324(a)(2)(B)(ii); Title 18, U.S.C., Section 371
Penalties: Maximum of five years in prison and up to a $250,000 fine
*The names of the remaining defendants have not been publicly released.
INVESTIGATING AGENCIES
Homeland Security Investigations – San Diego Marine Task Force
United States Border Patrol
United States Coast Guard
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Nineteen Alleged Members of Human Smuggling Organization Charged for Illegally Bringing Migrants into United StatesRead the Press Release
Nineteen alleged members of a human smuggling organization were charged for coordinating the smuggling of dozens of unauthorized migrants into the United States from Mexico, mostly aboard personal watercraft via the Pacific Ocean. Nine of the 19 are in custody. A grand jury returned an indictment against 14 members of the organization, and a complaint was filed against an additional five.
“The Justice Department is committed to dismantling transnational human smuggling operations that prey on migrants and threaten our national security,” said Deputy Attorney General Lisa Monaco. “Nefarious organizations like the one charged in this case can expect to answer for their alleged crimes in American courtrooms.”
The nine arrested defendants have been arrested at ports of entry or elsewhere in San Diego during a multi-agency enforcement effort last week; the remaining defendants are fugitives. Federal agents served court-authorized search warrants at suspected stash houses in San Diego and Los Angeles. Among other things, agents seized over $100,000 in U.S. currency and two boxes of ammunition during the enforcement operations. Agents previously seized more than $120,000 during the investigation.
According to the indictment and complaint, the defendants participated in a long-running conspiracy to illegally bring people from Mexico into the United States by land and sea. The organization arranged for transport from Mexico by personal watercraft to coastal areas such as Sunset Cliffs, Bird Rock in La Jolla, and Imperial Beach, California, often at night and in dangerous conditions. Smugglers favor personal watercraft for their speed and ability to approach shore quickly, allowing rapid drop-offs and evasion of authorities.
The charging documents allege the defendants were also responsible for transporting the migrants further within the United States, whether driving themselves or coordinating with other drivers, including to Los Angeles; Santa Barbara, California; and Las Vegas. The organization allegedly charged between approximately $7,000 and $16,000 per smuggled person and transported tens of thousands of dollars in profits from San Diego to Mexico.
“Human smuggling cases are a top priority because lives are at stake,” said U.S. Attorney Tara McGrath for the Southern District of California. “Whether racing a jet ski up the coast without lifejackets or hauling a tractor trailer packed with people, smugglers expose vulnerable migrants to extreme danger and prioritize profit over human life.”
“Every aspect of human smuggling – whether it be by land, sea, or aircraft – puts lives at risk,” said Acting Special Agent in Charge Christopher Davis of Homeland Security Investigations (HSI) San Diego. “HSI and our partner agencies are committed to curbing this illegal activity that’s solely designed to enrich greedy smugglers’ financial pockets.”
“This indictment serves as notice to those transnational criminal organizations operating along our coastal border that it is only a matter of time before they are brought to justice,” said San Diego Sector Chief Border Patrol Agent Patricia McGurk-Daniel. “Our focus continues to be on protecting our nation, and we will leverage all available resources to hold these criminals accountable for their actions.”
Defendants Edgar Jiminez Macias, 33; Alex Ceja Guzman, 30, also known as Alejandro and Gordo; and Tobias Julian Burgara Gonzalez, 32, all of Tijuana, Mexico, and Junior Zavala Ramirez, 34, also known as JR, of Tecate, Mexico, are currently in custody. They are charged with conspiracy to bring in aliens for financial gain and bringing in aliens for financial gain and aiding and abetting. If convicted, they each face a mandatory minimum penalty of five years in prison and a maximum penalty of 15 years in prison and up to a $250,000 fine. Additional defendants Ivan Pulido Jauregui, 49; Manuel Gonzalez Lopez, 26, also known as Tortillero; Jesus Misael Molina Flores, 20; Alexis Adrian Villela Inda, 29; and Mateo Adrian Alduenda Gutierrez, 26, all of Nayarit, Mexico, are also in custody and are charged with conspiracy to bring in aliens for financial gain. If convicted, they each face a maximum penalty of five years in prison and up to a $250,000 fine.
The names of the remaining defendants have not been publicly released.
The HSI San Diego Marine Task Force, U.S. Border Patrol, and U.S. Coast Guard investigated the case.
Assistant U.S. Attorneys David Fawcett (who is detailed to Joint Task Force Alpha, a partnership between the Justice Department’s Criminal Division and the Department of Homeland Security), Peter Horn, and Lawrence Casper for the Southern District of California are prosecuting the case.
The prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
These actions are also the result of coordinated efforts of Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland established JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Justice Department, in partnership with the Department of Homeland Security (DHS), to combat the rise in prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. JTFA comprises detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern District of California, District of Arizona, District of New Mexico, and Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by the Human Rights and Special Prosecutions Section, and supported by the Office of Prosecutorial Development, Assistance, and Training; Narcotic and Dangerous Drug Section; Money Laundering and Asset Recovery Section; Office of Enforcement Operations; Office of International Affairs; and Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, the FBI, Drug Enforcement Administration, and other partners. To date, JTFA’s work has resulted in more than 310 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; more than 250 U.S. convictions; more than 185 significant jail sentences imposed; and forfeitures of substantial assets.
An indictment or complaint are merely allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Alleged Transnational Human Smuggler Indicted and Sanctioned in the United States and Arrested in MexicoRead the Press Release
NEWS RELEASE SUMMARY – July 18, 2024
SAN DIEGO – An indictment was unsealed yesterday containing criminal charges against the alleged leader of a human smuggling organization responsible for unlawfully bringing thousands of migrants into the United States. Along with the organization, the defendant, who was arrested in Mexico at the request of the United States, has also been designated for financial sanctions by the U.S. Department of the Treasury. These developments were made possible through extensive bilateral coordination and cooperation efforts between U.S. and Mexican law enforcement authorities.
Abdul Karim Conteh, 42, a national of Sierra Leone, was arrested on July 11 in Tijuana, Mexico. The United States is pursuing Conteh’s extradition on federal charges stemming from his alleged actions in leading the human smuggling organization. His wife, Veronica Roblero Pivaral, 25, a national of Mexico, remains at large.
“This arrest unravels a global web of coordinated human smuggling into the United States,” said U.S. Attorney Tara McGrath for the Southern District of California. “Even the most far-reaching, prolific networks cannot evade justice.”
“In coordination with our law enforcement partners, the Justice Department has worked relentlessly to target and disrupt the unlawful, transnational human smuggling operations that endanger migrants and threaten our national security,” said Attorney General Merrick B. Garland. “We allege Abdul Karim Conteh and his organization smuggled thousands of migrants from more than a dozen different countries through Mexico into the United States. He has been arrested for his alleged role in this prolific, exploitive smuggling operation by Mexican authorities, and the Justice Department will ensure that he is held accountable in an American courtroom.”
“Human smugglers exploit the vulnerable for profit,” said Secretary of Homeland Security Alejandro N. Mayorkas. “Along with our partners across this Administration and around the world, we are bringing the full force of the law to bear against the individuals and their organizations that perpetrate this heinous crime. We couple our unrelenting efforts with this warning to would-be migrants everywhere: do not believe the smuggler’s lies and risk your lives in their ruthless hands.”
According to the indictment, Conteh’s organization allegedly smuggled thousands of migrants to the United States through Mexico. These smuggled migrants originated from countries around the world, including Iran, Afghanistan, Uzbekistan, Pakistan, Kazakhstan, Turkey, Somalia, Cameroon, Senegal, Mauritania, Ethiopia, Egypt, and others. The migrants paid smuggling fees, often tens of thousands of dollars, to be transported through various countries such as Brazil, Colombia, Ecuador, Panama, Costa Rica, Nicaragua, Honduras, and Guatemala, on the way to the U.S.-Mexico border.
Conteh allegedly coordinated with Roblero and co-conspirators throughout Mexico and other countries to facilitate the global transportation of migrants into and through Mexico to the U.S. border. Conteh then allegedly oversaw the migrants’ unlawful entry into the United States by various surreptitious and unlawful means, including the use of ladders and tunnels.
Conteh, Roblero, and others are charged with conspiracy to smuggle migrants into the United States, which carries a maximum penalty of 10 years in prison. Conteh is also charged with the unlawful smuggling of migrants for financial gain, which carries a mandatory minimum of three years in prison for the first two violations. Additional violations carry a mandatory minimum of five years in prison and a maximum penalty of 15 years in prison.
In addition, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) added the Abdul Karim Conteh Human Smuggling Organization (HSO) and four individuals to the Specially Designated Nationals and Blocked Persons List pursuant to Executive Order (E.O.) 13851, as amended by E.O. 13863 (E.O. 13581, as amended). For additional information on actions taken by OFAC, please visit https://home.treasury.gov/news/press-releases/jy2470.
The U.S. Border Patrol, HSI, and IRS Criminal Investigation Los Angeles Field Office are investigating this case.
The Justice Department’s Office of International Affairs worked with the Mexican authorities to secure Conteh’s arrest.
Assistant U.S. Attorneys Ryan A. Sausedo and David E. Fawcett for the Southern District of California are prosecuting the case, with substantial assistance from Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section.
These actions resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland established JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Justice Department, in partnership with the Department of Homeland Security (DHS), to combat the rise in prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. JTFA comprises detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern District of California, the District of Arizona, the District of New Mexico, and the Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by the Human Rights and Special Prosecutions Section, with additional support by the Office of Prosecutorial Development, Assistance, and Training; the Narcotic and Dangerous Drug Section; the Money Laundering and Asset Recovery Section; the Office of Enforcement Operations; the Office of International Affairs; and the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, DEA, and other partners. To date, JTFA’s work has resulted in more than 310 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; more than 250 U.S. convictions; more than 185 significant jail sentences imposed; and forfeitures of substantial assets.
The investigation is also supported by the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence, and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
DEFENDANTS Case Number 24cr1059-JLS
(1) Abdul Karim Conteh Age: 42 Tijuana, Mexico
(2) Veronica Roblero Pivaral Age: 25 Tijuana, Mexico
SUMMARY OF CHARGES
Conspiracy to Bring in Aliens at a Place Other Than Designated Port of Entry - Title 8, U.S.C., Sec. 1324(a)(l)(A)(i) and (v)(i);
Maximum Penalty: Ten years in prison
Bringing in Aliens for Financial Gain and Aiding and Abetting - Title 8, U.S.C., Sec. 1324(a)(2)(B)(ii), and Title 18, U.S.C., Sec. 2
Maximum penalty: Fifteen years in prison
INVESTIGATING AGENCIES
U.S. Border Patrol
Homeland Security Investigations
Internal Revenue Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Alleged Transnational Human Smuggler Indicted and Sanctioned in the United States and Arrested in MexicoRead the Press Release
An indictment was unsealed yesterday containing criminal charges against the alleged leader of a human smuggling organization responsible for unlawfully bringing thousands of migrants into the United States. Along with the organization, the defendant, who was arrested in Mexico at the request of the United States, has also been designated for financial sanctions by the U.S. Department of the Treasury. These developments were made possible through extensive bilateral coordination and cooperation efforts between U.S. and Mexican law enforcement authorities.
Abdul Karim Conteh, 42, a national of Sierra Leone, was arrested on July 11 in Tijuana, Mexico. The United States is pursuing Conteh’s extradition on federal charges stemming from his alleged actions in leading the human smuggling organization. His wife, Veronica Roblero Pivaral, 25, a national of Mexico, remains at large.
“In coordination with our law enforcement partners, the Justice Department has worked relentlessly to target and disrupt the unlawful, transnational human smuggling operations that endanger migrants and threaten our national security,” said Attorney General Merrick B. Garland. “We allege Abdul Karim Conteh and his organization smuggled thousands of migrants from more than a dozen different countries through Mexico into the United States. He has been arrested for his alleged role in this prolific, exploitive smuggling operation by Mexican authorities, and the Justice Department will ensure that he is held accountable in an American courtroom.”
“Human smugglers exploit the vulnerable for profit,” said Secretary of Homeland Security Alejandro N. Mayorkas. “Along with our partners across this Administration and around the world, we are bringing the full force of the law to bear against the individuals and their organizations that perpetrate this heinous crime. We couple our unrelenting efforts with this warning to would-be migrants everywhere: do not believe the smuggler’s lies and risk your lives in their ruthless hands.”
According to the indictment, Conteh’s organization allegedly smuggled thousands of migrants to the United States through Mexico. These smuggled migrants originated from countries around the world, including Iran, Afghanistan, Uzbekistan, Pakistan, Kazakhstan, Turkey, Somalia, Cameroon, Senegal, Mauritania, Ethiopia, Egypt, and others. The migrants paid smuggling fees, often tens of thousands of dollars, to be transported through various countries such as Brazil, Colombia, Ecuador, Panama, Costa Rica, Nicaragua, Honduras, and Guatemala, on the way to the U.S.-Mexico border.
“This arrest unravels a global web of coordinated human smuggling into the United States,” said U.S. Attorney Tara McGrath for the Southern District of California. “Even the most far-reaching, prolific networks cannot evade justice.”
Conteh allegedly coordinated with Roblero and co-conspirators throughout Mexico and other countries to facilitate the global transportation of migrants into and through Mexico to the U.S. border. Conteh then allegedly oversaw the migrants’ unlawful entry into the United States by various surreptitious and unlawful means, including the use of ladders and tunnels.
Conteh, Roblero, and others are charged with conspiracy to smuggle migrants into the United States, which carries a maximum penalty of 10 years in prison. Conteh is also charged with the unlawful smuggling of migrants for financial gain, which carries a mandatory minimum of three years in prison for the first two violations. Additional violations carry a mandatory minimum of five years in prison and a maximum penalty of 15 years in prison.
In addition, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) added the Abdul Karim Conteh Human Smuggling Organization (HSO) and four individuals to the Specially Designated Nationals and Blocked Persons List pursuant to Executive Order (E.O.) 13851, as amended by E.O. 13863 (E.O. 13581, as amended). For additional information on actions taken by OFAC, please visit www.home.treasury.gov/news/press-releases/jy2470.
The U.S. Border Patrol, HSI, and IRS Criminal Investigation Los Angeles Field Office are investigating this case.
The Justice Department’s Office of International Affairs worked with the Mexican authorities to secure Conteh’s arrest.
Assistant U.S. Attorneys Ryan A. Sausedo and David E. Fawcett for the Southern District of California are prosecuting the case, with substantial assistance from Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section.
These actions resulted from the coordinated efforts of Joint Task Force Alpha (JTFA). Attorney General Merrick B. Garland established JTFA in June 2021 to marshal the investigative and prosecutorial resources of the Justice Department, in partnership with the Department of Homeland Security (DHS), to combat the rise in prolific and dangerous human smuggling and trafficking groups operating in Mexico, Guatemala, El Salvador, and Honduras. JTFA comprises detailees from U.S. Attorneys’ Offices along the southwest border, including the Southern District of California, the District of Arizona, the District of New Mexico, and the Western and Southern Districts of Texas. Dedicated support is provided by numerous components of the Justice Department’s Criminal Division, led by the Human Rights and Special Prosecutions Section, with additional support by the Office of Prosecutorial Development, Assistance, and Training; the Narcotic and Dangerous Drug Section; the Money Laundering and Asset Recovery Section; the Office of Enforcement Operations; the Office of International Affairs; and the Violent Crime and Racketeering Section. JTFA also relies on substantial law enforcement investment from DHS, FBI, DEA, and other partners. To date, JTFA’s work has resulted in more than 310 domestic and international arrests of leaders, organizers, and significant facilitators of human smuggling; more than 250 U.S. convictions; more than 185 significant jail sentences imposed; and forfeitures of substantial assets.
IndictmentNavy Detective Agrees to Resign After Pleading Guilty to Using Unreasonable Force and Making a False StatementRead the Press Release
NEWS RELEASE SUMMARY – July 11, 2024
SAN DIEGO – Jonathan Christopher Laroche, a detective with the Department of the Navy’s Criminal Investigations Division, pleaded guilty in federal court today, admitting that he used unreasonable force when he used a carotid restraint on a handcuffed man to the point of unconsciousness. Laroche admitted to later grabbing the man by the throat and pushing his head against a wall while the man was handcuffed to a bench.
Laroche also pleaded guilty to willfully concealing his prior record of excessive force at the El Cajon Police Department in order to be hired as a detective by the Navy.
In the hearing before U.S. Magistrate Judge Michelle M. Pettit, Laroche admitted that on November 14, 2023, while he was on duty, he encountered a man identified in court documents as G.D., who had been detained and transported to the security building aboard Naval Base San Diego by other Navy law enforcement personnel.
Although Laroche did not know why G.D. had been detained, he followed the other Navy law enforcement officers into a separate room. At the time, G.D.’s hands were handcuffed behind him, and he posed no threat to Laroche or anyone else in the room. Nevertheless, Laroche immediately took G.D. to the ground and used a carotid restraint that lasted approximately 17 seconds and caused G.D. to lose consciousness.
After G.D. regained consciousness, he was taken back into the main room of the security building, where Laroche handcuffed him to a bench. In a subsequent interaction, while G.D. remained handcuffed to the bench and was not a threat to anyone, Laroche grabbed G.D. by the throat and pushed his head against the wall. Laroche had to be pulled away from G.D. by a supervisor. Laroche admitted that during both of these incidents, he acted willfully and intentionally, depriving G.D. of his right to be free from unreasonable seizure, which includes the right to be free from the unreasonable use of force, under the Fourth Amendment to the U.S. Constitution.
According to his plea agreement, Laroche also admitted that he lied in his August 15, 2022, application to the Criminal Investigations Division about the circumstances under which he left his prior employment with the El Cajon Police Department. Specifically, Laroche represented to the Department of the Navy that he had left the El Cajon Police Department because he had been “hired by U.S. Department of Defense police.” On the application, he falsely indicated that he had not been reprimanded or disciplined while employed by El Cajon Police Department and had not “quit after being told [he] would be fired,” among other false statements.
In reality, Laroche resigned from the El Cajon Police Department in June 2018 after being informed he was going to be fired as a result of two separate incidents in 2017 where he was found to have used excessive force against civilians. He also received a letter of reprimand in September 2015 for an earlier incident in which he used excessive force. Laroche admitted that he knowingly and willfully provided this false information in his application to the Criminal Investigations Division.
“This defendant’s violent acts against someone who posed no threat are reprehensible,” said U.S. Attorney Tara McGrath. “Today, we stripped of power and held accountable an outlier who abused his authority and tarnished his badge.”
“The investigation into Mr. Laroche revealed that he betrayed his oath to protect and serve the Navy by using unreasonable force while on duty and by deliberately hiding his history of such offenses in order to be hired by the Navy,” said Special Agent in Charge Nicholas Carter of the NCIS Southwest Field Office. “NCIS remains committed to rooting out criminality that threatens the safety of Navy service members, civilians, and their families.”
As part of his plea agreement with the United States, Laroche must resign from his position with the Criminal Investigations Division and is prohibited from seeking or applying for any position of employment with a law enforcement agency in the future.
Laroche is scheduled to be sentenced on October 2, 2024, at 10 a.m. before U.S. District Court Judge John A. Houston.
This case is being prosecuted by Assistant U.S. Attorney Seth Askins in coordination with the Naval Criminal Investigative Service. Former Special Assistant U.S. Attorney Arne J. Bussler assisted in the investigation.
DEFENDANT Case Number 24cr1431
Jonathan Christopher Laroche Age: 40 Spring Valley, CA
SUMMARY OF CHARGES
False Statement – Title 18, U.S.C., Section 1001
Maximum penalty: Five years in prison and $250,000 fine
Deprivation of Rights Under Color of Law (misdemeanor) – Title 18, U.S.C., Section 242
Maximum penalty: One year in prison and $100,000 fine
INVESTIGATING AGENCY
Naval Criminal Investigative Service
Leader of Major Migrant Smuggling Ring Pleads GuiltyRead the Press Release
NEWS RELEASE SUMMARY – July 11, 2024
SAN DIEGO – Felipe de Jesus Rosales-Herrera of Riverside pleaded guilty in federal court today to human smuggling charges, admitting he was a leader of an organization that smuggled more than 100 unauthorized migrants into the United States, in some instances imperiling public safety by leading authorities on high-speed chases.
According to his plea agreement, Rosales-Herrera employed foot guides to lead migrants over the border and drivers to pick them up on the U.S. side and deliver them to a stash house to meet a sponsor. Rosales-Herrera admitted that he charged approximately $10,000 per migrant.
According to court documents, some of the smuggling events in the conspiracy resulted in high-speed chases and crashes, which placed the migrants, drivers, law enforcement, and members of the public at risk. This culminated in a tragic collision on December 25, 2021. Kevin Antonio Quevedo-Moncada, acting under co-defendant Jose Luis Alejo-Cruz’s supervision, picked up three undocumented migrants in a remote area. When Border Patrol attempted to pull him over, Quevedo-Moncada fled into a nearby campground, swerving wildly and careening around a field at high speed before ramming a Border Patrol vehicle to escape. As agents pursued him, he sped away on wet, winding roads, reaching speeds of close to 100 mph. Quevedo-Moncada lost control of his car and struck a tree, killing one of the migrants and leaving the other two in critical condition. Quevedo-Moncada pleaded guilty to charges related to this incident.
Even after learning that his driver had killed someone, Rosales admitted in his plea agreement that he and his co-conspirators continued the conspiracy. As co-defendant John Douglas Oglesby III admitted in his plea agreement, drivers were told to flee if Border Patrol attempted to pull them over. Unfortunately, many drivers did just that, resulting in numerous high-speed chases and several crashes. Alejo-Cruz also relied on intimidation to preserve his position, tracking down and robbing two of his former drivers at gunpoint when he felt they had wronged him and plotting to kidnap a rival migrant smuggler.
“These smugglers treated humans as a commodity, endangering not only the migrants’ lives, but the safety of every driver on the road,” said U.S. Attorney Tara McGrath. “This office is focused on dismantling smuggling organizations and holding their leaders accountable.”
“We will never stop targeting these criminal organizations who prioritize profit over lives,” said U.S. Border Patrol, San Diego Sector Chief Patrol Agent Patrica McGurk-Daniel. “Our agents are committed to the safety and security of migrants, the public, and our nation. It is only through strong partnerships with the U.S. Attorney’s Office, and all our law enforcement partners, that we ensure justice is served and consequences are delivered to these criminals.”
Co-defendants Alejo-Cruz and Oglesby were previously sentenced to 120 months and 70 months in federal prison, respectively. Sentencing for Rosales-Herrera is scheduled to take place on October 11, 2024. A motion hearing and trial setting for the final defendant, Miguel Isaac Villa-Gomez, is scheduled for July 12, 2024.
This case is being prosecuted by Assistant U.S. Attorney Paul Benjamin.
DEFENDANTS
Case Number 23-CR-871-CAB
Felipe de Jesus Rosales-Herrera Age: 38 Riverside County, CA
Jose Luis Alejo-Cruz Age: 23 Long Beach, CA
John Douglas Oglesby III Age: 20 Chesapeake, VA
Miguel Isaac Villa-Gomez Age: 27 Downey, CA
Case Number 22-CR-1995-CAB
John Douglas Oglesby III Age: 20 Chesapeake, VA
SUMMARY OF CHARGES
Conspiracy to Transport Aliens – Title 8, U.S.C., Section 1324
Maximum penalty: Ten years in prison and $250,000 fine
INVESTIGATING AGENCY
United States Border Patrol
Shipyard Contractor Sentenced to Prison for Stealing Almost $600,000 Worth of Computer Equipment from the U.S. NavyRead the Press Release
NEWS RELEASE SUMMARY – July 10, 2024
SAN DIEGO – Ernesto Saldivar, a civilian contractor at General Dynamics NASSCO who was employed as part of the shipyard’s modernization efforts, was sentenced in federal court today to 18 months in prison for stealing almost $600,000 worth of computer equipment from several U.S. Navy ships.
According to court documents, from November 2022 to August 2023, Saldivar stole hundreds of military hard drives and laptops from declassified areas on ships undergoing maintenance. Saldivar then sold the stolen items on eBay. Two of the hard drives he stole contained classified military communications. The affected ships included the USS Pinckney, USS Curtis Wilbur and USS Spruance. The total value of the stolen computer equipment – including two laptops, two programmer units, four DC-DC converters, 18 power converters, and 302 hard drives – totaled $596,997.53.
During the investigation of the missing hard drives, the U.S. Army Criminal Investigation Laboratory conducted a forensic analysis on fingerprints left inside the empty hard drive trays. These interior areas of the hard drive trays could only be touched after a hard drive was removed. The prints belonged to Saldivar. Naval Criminal Investigative Service agents also traced eBay listings of some of the stolen equipment to Saldivar. And, during a court-authorized search of Saldivar’s home on August 25, 2023, NCIS agents recovered 120 of the missing hard drives, a Panasonic Toughbook laptop from the USS Pinckney with software from Integrated Voice Communications System (IVCS), several DC-DC converters traceable to the USS Pinckney, a BPM Microsystems 1410 taken from the Curtis Wilbur, and a BPM Microsystems 1710 Universal Device Programmer matching the serial number of an inventoried loss, all stored haphazardly in a shed on Saldivar’s property.
Saldivar admitted in his plea agreement that the total value of the stolen items was $596,997.53, almost all of which he was ordered to pay the United States government in restitution. The defendant was also ordered to pay back the United States Navy the $2,584.98 he incurred in payments from eBay sales of the stolen items.
Prosecutors urged the court to impose a custodial sentence, noting that the three U.S. Navy destroyers that Saldivar stole from are critical to the national defense of the United States.
At sentencing, U.S. District Judge John A. Houston repeatedly admonished Saldivar for committing a “grave breach of national security,” and noted the danger Saldivar’s criminal behavior posed to military personnel and national defense. The judge declined to impose defense’s recommended sentence of probation, stating that “if you steal from the United States Navy, you go to jail. You don’t get a walk.”
“Stealing from the military doesn’t just hurt the taxpayer, it puts our national security at risk,” said U.S. Attorney Tara McGrath. “Our armed forces rely heavily on contract employees and service members must be able to trust the civilians standing by their side.”
“Mr. Saldivar’s criminal actions to steal nearly $600,000 worth of computer equipment from multiple U.S. Navy ships betrayed the Navy's warfighters, posed a threat to our national security, and wasted valuable taxpayer money,” said Special Agent in Charge Nicholas Carter of the NCIS Southwest Field Office. “NCIS and our partners remain committed to protecting the Department of the Navy’s assets.”
This case was prosecuted by Assistant U.S. Attorney Sarah Goldwasser and former Assistant U.S. Attorney Michelle Wasserman.
DEFENDANT Case Number 24CR532-JAH
Ernesto Saldivar Age: 30 San Diego, CA
SUMMARY OF CHARGES
Theft of Government Property – Title 18, U.S.C., Section 641
Maximum penalty: Ten years in prison and $250,000 fine
INVESTIGATING AGENCY
Naval Criminal Investigative Service
If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Inspector General Hotline at 800-424-9098.
Money Transmitting Business Pleads Guilty to Failing to Report Transactions; Agrees to Forfeit $700,000Read the Press Release
NEWS RELEASE SUMMARY – June 26, 2024
SAN DIEGO – Taaj Services US LLC, one of the nation’s fastest-growing money transmitting businesses, pleaded guilty in federal court today, admitting that it failed to report financial transactions involving more than $10,000 in U.S. currency as required by the Bank Secrecy Act.
As part of the plea agreement, Taaj Services admitted that it was never licensed to operate in California, among other states. Beginning in November 2019, the company entered into a conspiracy with another money transmitting business (MTB-1) that was licensed to operate in California. Taaj worked together with MTB-1 to transfer money in California. With the use of the TaajPay network, MTB-1 could then have California-based customers send money abroad without state regulatory scrutiny of TaajPay’s compliance with the Bank Secrecy Act for MTB-1’s California clients because the California regulators would never know of TaajPay’s operations in the state.
From just November 27, 2019, to December 11, 2019, Taaj collected $703,078 from MTB-1’s operations in the Southern District of California and elsewhere. Taaj never reported these currency transactions as required by the Bank Secrecy Act. As part of the plea agreement, Taaj agreed to forfeit $700,000 to the U.S. government.
Taaj also admitted to transporting $900,000 in physical U.S. currency to the Middle East on behalf of MTB-1 in 2020 without reporting the exchange of currency between the two companies.
Further, after the COVID-19 pandemic interrupted international commercial flights, Taaj was no longer able to physically transport currency abroad on MTB-1’s behalf. As a result, Taaj began using MTB-1’s bank account to wire money abroad. Taaj would provide MTB-1 with cash for MTB-1 to deposit in its bank and then electronically transfer the money on Taaj’s behalf. Taaj admitted that it delivered more than $66 million dollars to MTB-1 as part of this practice and neither company filed any reports to document the exchange.
The plea agreement provides for deferred entry of judgment, whereby the government will defer prosecution of the offense for a 24-month deferral period. If Taaj fully complies with the agreement, the government will dismiss the prosecution after the 24 months.
This case is being prosecuted by Assistant U.S. Attorneys Michael A. Deshong, Carl F. Brooker, IV, and Christopher Beeler.
DEFENDANT Case Number 24cr1322-BAS
Taaj Services US LLC Minneapolis, MN
SUMMARY OF CHARGES
Willful Failure to File Transaction Report – Title 31, United States Code, Sections 5313 and 5322; 31 C.F.R. § 1010.330.
Maximum penalty: Five years in prison and $250,000 fine
INVESTIGATING AGENCY
Homeland Security Investigations
U.S. Attorney’s Office, FBI Recover Millions for Elderly Fraud VictimsRead the Press Release
NEWS RELEASE SUMMARY – June 20, 2024
SAN DIEGO – Because of a new and aggressive effort to thwart criminals who target seniors, the U.S. Attorney’s Office and the San Diego FBI have recovered more than $3 million lost by victims of sophisticated fraud schemes that primarily targeted the elderly.
The ongoing operation, launched at the beginning of the year, is a collaboration led by the U.S. Attorney’s Office and the FBI with assistance from state and local agencies. The operation uses a data-driven approach to target and seize money on behalf of victims of fraud. Since January 2024, investigators have obtained over 40 seizure warrants written for more than $5.6 million in seizures, with $3,339,273.58 recovered so far.
“By getting reports of suspected fraud early, we have been able to interrupt millions of dollars in transactions and recover victims’ money before it’s too far gone,” said U.S. Attorney Tara McGrath. “We are using every tool at our disposal to support victims of these sophisticated scams, and bring those who prey on the elderly to justice. But our efforts depend on early reporting – so if you think you may have been contacted by a scammer, report it immediately.”
“It is imperative that we are relentless in our fight against scammers who seek to defraud our most vulnerable citizens,” said FBI San Diego Acting Special Agent in Charge Jamie Arnold. “Our best defense is educating the public about how to avoid becoming a victim of these schemes, and encouraging those that fall victim to a scam to immediately report it to law enforcement.”
June 15 was World Elder Abuse Awareness Day, meant to draw attention to the abuse and neglect affecting the older generations. Approximately one in ten people over the age of 60 have experienced some form of elder abuse, including financial exploitation. And such crimes are still widely underreported.
Cyber-enabled fraud is a nationwide menace, but it uniquely impacts California, including the citizens of the Southern District of California. According to the recently published 2023 FBI IC3 report, in 2023, California led the nation in both number of victims (more than 77,000) and the amount of victim loss ($2.1 billion). But population alone is not the reason for these troubling statistics. While California has 30 percent more population than Texas, the next most populous state, California has 63 percent more victims and more than double the victim loss in comparison.
Some recent prosecutions related to schemes that victimized seniors:
- United States v. Xilin Sun, 24CR1007-BTM - Man Charged in $1.49 Million Scam Involving Bitcoin ATM Deposits and Bulk Gold Purchases; Victim is Retiree who Lost Life Savings
- United States v. Jiaci Liu, 24MJ1929-DDL - Man Charged in Scams Targeting Seniors
In terms of loss amounts, cryptocurrency investment scams have the highest loss amounts. These schemes involve victims being targeted through messages on mobile messaging apps or social media. It starts as a text message or a chat message from a stranger, often with an attractive profile photo, with a simple “hello” or what seems like confusion about why your phone number is in the person’s contacts. Once a victim responds to these messages, the conversation is steered over time to an online investment. After building the trust of the victim, the scammers suggest that they can show the victim how to make money by investing online in cryptocurrency, for example. In reality, the victim unknowingly transfers money to the scammers, who first pretend that the victim is making incredible gains, and then ultimately disappear with the money.
In terms of number of victims, the most prevalent scams are tech support/government impersonation/bank impersonation scams. These scams specifically target victims over 60 years old. These scams, alone or layered on top of one another, involve unsolicited pop-up ads on a computer or spam emails or phone calls. The scam may involve allegations that the victim’s computer is compromised. In other instances, victims receive emails claiming the victim made a purchase or subscribed to some service the victim did not subscribe to. Victims are then directed to call a phone number to address the issue. When the victim calls, they unwittingly connect to a scam call center that often then instructs the victim to download commercially available remote desktop software, which the scammers use to perpetuate the fraud. Ultimately, victims are defrauded into sending wire transfers, bulk cash in express mail packages, or to purchase gift cards for the scammers. Once a victim is successfully scammed, they are often repeatedly targeted until they no longer have any money. For that reason, it is critical for victims to report the scams to the FBI IC3 (www.ic3.gov), as well as local law enforcement.
The last major category of scams affecting Americans are business email compromise (“BEC”). These scams involve spoofing an email address of a business, such as a realtor or escrow company or some other entity owed significant amounts of money. The scammers then pretend to be that business by creating email addresses that are very similar to the legitimate business’s email address. Victims are then told that the wire instructions have been changed and are instructed to wire money to the new account. In reality, victims are defrauded out of thousands (often hundreds of thousands) of dollars when they send the wire transfer to the scammers’ bank accounts. Individuals involved in purchases of real estate are particularly vulnerable, since they are often dealing with realtors and escrow companies on a one-off basis and may not notice the person emailing the wire instructions is a fraud. If you receive wire instructions, especially involving high dollar amounts, it is best to confirm those instructions are real by contacting the other parties in the transaction by phone and using phone numbers you have already verified.
The U.S. Attorney’s Office requests that the following warnings be distributed or announced to the general public in an effort to engage and educate those who may be targeted:
- Legitimate companies DO NOT typically seek to access to computers or phones remotely, that is, you should not be asked to share your computer screen with a legitimate company.
- Legitimate companies DO NOT request that customers provide User ID or Passwords for the representative to log into your account for you.
- Legitimate companies DO NOT ask customers to send cash through the mail, deliver gold bars or precious metals, or make deposits into cryptocurrency ATMs.
- Legitimate companies DO NOT ask customers to mail money or wire funds in order to refund alleged overpayments.
If you are asked to do any of these things, HANG UP the phone.
If you are concerned – HANG UP. It is ok to GET OFF THE PHONE AND CALL A FRIEND OR FAMILY MEMBER TO DOUBLE CHECK if a call is suspicious.
A legitimate company will want you to be sure and careful.
If you think you’ve been contacted by a scammer, report it quickly at IC3.gov. There is a team standing by. The faster the report comes in, the more likely we are to stop the transaction and recover your money.
Ways to help prevent elder abuse and neglect:
• Listen to older adults and their caregivers to understand their challenges and provide support.
• Check-in on older adults who may have few friends and family members.
• Look for unusual financial transactions – unexplained withdrawals, purchases of gold bars or cryptocurrency, or uncharacteristic efforts to wire large amounts of money.
• And report abuse or suspected abuse to local adult protective services, long-term care ombudsman, or the police.
For other non-life-threatening emergencies, call the National Elder Fraud Hotline at 1-833-FRAUD-11, or go to the Department of Justice’s Elder Justice Initiative website for more information:
www.justice.gov/elderjustice.