Central District of California

LOS ANGELES – A former Riverside resident who last year shot and wounded two Jewish men as they left religious services in the Pico-Robertson area of Los Angeles has agreed to plead guilty to hate crimes and firearms offenses, the Justice Department announced today.

Jaime Tran, 29, has agreed to plead guilty to all charges against him: two counts of hate crimes with intent to kill and two counts of using, carrying, and discharging a firearm during and in relation to a crime of violence.

Tran is expected to plead guilty to the felony charges before United States District Judge George H. Wu in the coming weeks.

Upon entering his guilty plea, Tran will face a statutory maximum sentence of life in federal prison for each hate crime count, and a maximum of life imprisonment and a mandatory minimum sentence of 10 years for each firearm count.

Under the plea agreement, which prosecutors filed today, Tran would receive a prison sentence of between 35 years and 40 years.

“This defendant sought to murder two men simply because they were Jewish,” said United States Attorney Martin Estrada.  “Rather than allow these horrific crimes to divide us, however, our community came together and swiftly brought the perpetrator to justice. Hate and intolerance have no place in America. We will remain firm in our approach of using all the tools at our disposal to aggressively prosecute acts of hate.”

“The defendant’s hatred led him to plan the murder of two innocent victims simply because he believed they were practicing their Jewish faith,” said Krysti Hawkins, the Acting Assistant Director of the FBI’s Los Angeles Field Office. “I’m relieved that the hard work by investigators and prosecutors led to Tran’s admission to these abhorrent crimes, and hope that members of the Jewish community take some solace in knowing that he will not be in the position to target their fellow members.” 

“I’m thankful for the hard work our investigators and prosecutors have put into this case,” said Los Angeles Police Chief Dominic Choi. “Hate crimes tear at the fabric of our communities and safety. The Los Angeles Police Department is stronger through our federal partnerships, better serving the people of Los Angeles.”        

According to his plea agreement, Tran developed and espoused antisemitic beliefs and made violent threats toward Jewish people. In 2018, Tran left dental school after making hate-filled statements about other students whom he perceived to be Jewish.

From August 2022 to December 2022, Tran’s antisemitic statements escalated and included increasingly violent language, including against a former classmate whom he repeatedly called and texted with messages such as “I want you dead, Jew,” “Someone is going to kill you, Jew,” and “Burn in an oven chamber.”

In November 2022, Tran emailed two dozen former classmates a flyer containing antisemitic propaganda, including the statement, “EVERY SINGLE ASPECT OF THE COVID AGENDA IS JEWISH.”  The following month, Tran emailed his former classmates excerpts from a website describing Jewish persons as “primitive” and having “thick skulls.”

As a result of previous mental health holds, as of 2023, Tran was prohibited from purchasing firearms. In January 2023 in Phoenix, Tran asked a third party to buy two firearms for him. Tran selected the firearms he wanted and paid approximately $1,500 in cash to the third party, who then purchased them.

On the morning of February 15, 2023, Tran used the internet to research locations with a “kosher market,” and planned to shoot someone near a kosher market because he believed there would be Jewish people in the area. Tran drove to Pico-Robertson and shot a Jewish victim wearing a yarmulke as he was leaving religious services at a synagogue. Tran, believing the victim was Jewish, shot him at close range in the back, intending to kill him. Tran then fled the scene in his car.

The next morning, February 16, 2023, Tran returned to the Pico-Robertson area, intending to shoot another Jewish person. Tran shot a second Jewish victim, also wearing a yarmulke and leaving a synagogue after attending religious services. Tran shot the victim at close range, intending to kill him, as the victim crossed the street. Tran again fled the scene. 

Both victims survived the attacks. Law enforcement arrested Tran on February 17 and he has remained in custody since then.

The FBI and the Los Angeles Police Department are investigating this matter. The Riverside County Sheriff’s Department, the Cathedral City Police Department, and the Fountain Valley Police Department provided substantial assistance.

Assistant United States Attorneys Kathrynne N. Seiden of the Terrorism and Export Crimes Section and Frances S. Lewis of the Public Corruption and Civil Rights Section are prosecuting this case.

SANTA ANA, California – A Florida man was sentenced today to 42 months in federal prison for helping the perpetrators of the March 2022 firebombing of a Planned Parenthood clinic in Orange County construct a Molotov cocktail.

Xavier Batten, 21, of Brooksville, Florida, was sentenced by United States District Judge Cormac J. Carney, who also ordered him to pay $1,000 in restitution and imposed a three-year term of supervised release – to follow after Batten finishes serving his prison sentence – permitting suspicion-less searches of Batten by law enforcement.

At today’s hearing, Judge Carney said Batten had committed a “cowardly crime” that showed “no empathy for women and their rights.”

Batten pleaded guilty on January 19 to one felony count of possessing an unregistered destructive device and one misdemeanor count of intentionally damaging a reproductive health services facility, in violation of the Freedom of Access to Clinic Entrances Act. He has been in federal custody since July 2023.

In February and March of 2022, Batten conspired with Chance Brannon, 24, of San Juan Capistrano, who at the time was an active-duty member of the United States Marine Corps stationed at Camp Pendleton, to damage a reproductive health clinic that was open to the public.

On March 12, 2022, Brannon and Tibet Ergul, 22, of Irvine, met in Ergul’s garage and constructed a Molotov cocktail, an incendiary and destructive device which they did not register with the National Firearm Registration and Transfer Record. Batten, who was in Florida at the time, helped Brannon by advising him on how to build the Molotov cocktail, knowing Brannon intended to use the device to firebomb a reproductive health clinic.

During the early morning of March 13, 2022, Brannon and Ergul drove to a Planned Parenthood clinic in Costa Mesa, ignited the Molotov cocktail, and threw it at the clinic entrance, intentionally starting a fire, before fleeing. The damage to the clinic forced it to temporarily close and to reschedule approximately 30 patients’ appointments. Within minutes of firebombing the clinic, Brannon texted Batten to inform him that their plan had been successful and Batten congratulated Brannon on his success.

Prosecutors argued in a sentencing memorandum that Batten has a history of threatening to commit mass shootings and his communications and internet searches reflect a violent and racially motivated ideology. In May 2022, two months after Batten helped orchestrate Brannon’s Planned Parenthood attack, Batten messaged Brannon for advice on how to “get away with” committing a similar attack against another fertility clinic, according to the prosecution’s sentencing memorandum. 

“[Batten’s] willingness to help his codefendants firebomb a healthcare clinic from afar, without being present to check for people or control the circumstances, reflects a seeming apathy to whether anyone would be hurt or killed as a result of his tutelage,” prosecutors argued in the sentencing memorandum.

On April 15, Judge Carney sentenced Brannon to nine years in federal prison for his role in the attack and for plotting other attacks – including an attack on the Orange County power grid in furtherance of a race war, an attack at Dodger Stadium during an LGBTQ+ pride night celebration, and the home invasions of Jewish residences in Los Angeles.

Brannon pleaded guilty in November 2023 to one count of conspiracy, one count of malicious destruction of property by fire and explosives, one count of possession of an unregistered destructive device, and one count of intentionally damaging a reproductive health services facility in violation of the Freedom of Access to Clinic Entrances Act.

Ergul pleaded guilty on February 29 to one felony count of conspiracy to damage an energy facility and one misdemeanor count of intentional damage to a reproductive health services facility. His sentencing hearing is scheduled for May 30.

The FBI’s Joint Terrorism Task Force and the Naval Criminal Investigative Service investigated this matter. The Costa Mesa Police Department and the Costa Mesa Fire Department provided substantial assistance.

Assistant United States Attorney Kathrynne N. Seiden of the Terrorism and Export Crimes Section is prosecuting this case with substantial assistance from Trial Attorney Jacob Warren from the Justice Department’s National Security Division’s Counterterrorism Section.

LOS ANGELES – A South Gate man pleaded guilty today to a federal narcotics charge for leading a drug trafficking ring that imported drugs, including cocaine and heroin, from Mexico, then used modified BMWs with hidden trap compartments to distribute those drugs throughout the United States.

Joel Antonio Villegas, 35, a.k.a. “Junior,” pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute controlled substances.

According to his plea agreement, from at least November 2017 to September 2019, Villegas led a drug trafficking organization that imported from Mexico to the United States kilogram quantities of cocaine, heroin, marijuana, and hashish oil. As the conspiracy’s organizer and manager, Villegas picked up the drugs and arranged for their sale to customers or fellow conspirators.

Villegas ordered other conspirators to purchase cars – including BMWs – and modify them by installing hidden trap compartments so other members of the organization could conceal and transport narcotics and drug proceeds on the organization’s behalf.

Villegas delegated to other conspirators the coordination of cross-border caravans using couriers and other so-called “trap cars” to pick up drugs – including cocaine and heroin – in Mexico and transport them into the United States.

He also operated a stash house containing cocaine, marijuana, and hashish oil as well as materials to manufacture and distribute drugs, including packaging materials, pill presses, drug ledgers, and money counters. Villegas also possessed firearms at his residence to protect the organization’s drug proceeds.

In September 2019, when law enforcement executed a warrant at Villegas’ residence and called him on his telephone and ordered him to come outside, Villegas set fire to numerous paper journals, including drug ledgers and pay/owe sheets. He also broke several cellphones and other digital devices and attempted to break even more. Villegas admitted in his plea agreement that he willfully impeded and obstructed the administration of justice by doing so.

In addition to multiple firearms Villegas possessed at his residence, law enforcement also recovered $127,307 in cash and jewelry, including three Rolex watches and one golden necklace, all of which were purchased with the organization’s drug proceeds.

That same day, law enforcement executed a search warrant at a Downey stash house that Villegas’ organization used and seized approximately 882 grams (1.9 pounds) of heroin, approximately 1 kilogram (2.2 pounds) of marijuana, and 81.3 grams of hashish oil, as well as a money counter, pill press machine, and drug paraphernalia, among other items.

In total, the conspiracy involved at least approximately 3.9 kilograms (8.6 pounds) of heroin, approximately 52 kilograms (114.6 pounds) of cocaine, approximately 25 kilograms (55.1 pounds) of marijuana, and approximately 186.2 grams of hashish oil.

United States District Judge André Birotte Jr. scheduled an August 30 sentencing hearing, at which time Villegas will face a statutory maximum sentence of life imprisonment.

The FBI, the Drug Enforcement Administration, IRS-Criminal Investigation, U.S. Customs and Border Protection, the California Highway Patrol, the Pasadena Police Department, the South Gate Police Department, and the Jacksonville Sheriff’s Office investigated this matter with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).

Assistant United States Attorneys Kyle W. Kahan of the International Narcotics, Money Laundering, and Racketeering Section, Jena A. MacCabe of the Violent and Organized Crime Section, and A. Carley Palmer of the Criminal Appeals Section are prosecuting this case.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.   

LOS ANGELES – An Orange County man and part-time actor was found guilty by a jury today of soliciting investors in companies that marketed what in fact were a bogus cure and treatment for COVID-19 during the pandemic’s early days.

Keith Lawrence Middlebrook, 56, of Huntington Beach, was found guilty of 11 counts of wire fraud. He remains free on $150,000 bond.

According to evidence presented at a three-day trial, in March 2020, Middlebrook solicited potential investors in California, Nevada, New York, Texas, and Colorado via text messages, videos and statements posted on YouTube and Instagram about his purported cure for COVID-19. Middlebrook called this so-called cure “QC20,” and he also marketed a purported COVID treatment, which he called “QP20.”

Middlebrook claimed to have personally developed a “patent-pending” cure and a treatment to prevent coronavirus infection. Middlebrook fraudulently solicited investments in various companies with a series of false promises. These fraudulent claims included miraculous results from the prevention product and the cure, risk-free and 100 percent guaranteed “enormous returns” on investments,” and that former Los Angeles Lakers point guard Earvin “Magic” Johnson was a director and officer of Middlebrook’s company. He induced victims to invest their money by promising them enormous returns.

To bolster these claims, defendant Middlebrook lied that a party in Dubai had offered to purchase Middlebrook’s companies for $10 billion, and this offer would secure the victim-investors’ investments in the companies. He also lied that he had secured funding from seven investors who had each already invested between $750,000 and $1 million.

The FBI arrested Middlebrook in this case in March 2020 after Middlebrook delivered pills – purportedly the treatment that prevents coronavirus infection – to an undercover agent who was posing as an investor.

United States District Judge Dale S. Fischer scheduled a September 9 sentencing hearing, at which time Middlebrook will face a statutory maximum sentence of 20 years in prison for each wire fraud count.

The FBI investigated this matter.

Assistant United States Attorneys Kenneth R. Carbajal and Joseph S. Guzman, both of the General Crimes Section, are prosecuting this case.

LOS ANGELES – Andrew A. Wiederhorn, the former CEO and current controlling shareholder of the publicly traded Fat Brands Inc. (FAT), has been indicted on federal charges alleging a scheme to conceal $47 million in distributions he received in the form of shareholder loans from the IRS, FAT’s minority shareholders, and the broader investing public, the Justice Department announced today.

According to the indictment returned Thursday by a federal grand jury, Wiederhorn – assisted by FAT’s chief financial officer and his outside accountant at advisory firm Andersen – concealed millions of dollars in reportable compensation and taxable income and evaded the payment of millions of dollars in taxes, while causing FAT itself to violate the Sarbanes-Oxley Act’s prohibition on direct and indirect extensions of credit to public-company CEOs in the form of a personal loan.

“This defendant, the former CEO of a publicly traded company, is alleged to have engaged in a long-running scheme to defraud investors and the United States Treasury to the tune of millions of dollars,” said United States Attorney Martin Estrada. “Instead of looking out for shareholders, the defendant allegedly treated the company as his personal slush fund, in violation of federal law. The Corporate and Securities Fraud Strike Force of my office focuses on rooting out corporate malfeasance by corporate insiders, and we will continue to protect the public by bringing these important prosecutions.”

“The indictment alleges that with the assistance of his co-defendants, Mr. Wiederhorn repeatedly evaded his taxes and the law as he engaged in a cover-up to avoid being accountable to shareholders,” said Krysti Hawkins, the Acting Assistant Director in Charge of the FBI's Los Angeles Field Office. “Rather than continuing to fund his lavish lifestyle, Mr. Wiederhorn will face serious consequences for his alleged criminal actions.”

“The allegations contained in the indictment against Mr. Wiederhorn show that he is a serial tax cheat. His actions over decades hurt not only his company and its shareholders, but also every American taxpayer,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Failing to honestly and accurately report income shortchanges Americans, and places undue strain on honest taxpayers. CI is committed to investigating this sort of criminal behavior to ensure accountability and equity in the tax system.”

The defendants charged in the indictment are:

• Wiederhorn, of Beverly Hills;
• William J. Amon, of Los Angeles, a certified public accountant, attorney, and one-time managing director of Andersen’s Los Angeles Office, who provided tax-advisory services to Wiederhorn, FAT, and FAT’s former affiliate, Fog Cutter Capital Corporation (FOG);
• Rebecca D. Hershinger, a Los Angeles-area resident who formerly served as FAT’s CFO and, in that role, certified FAT’s public filings; and
• Fat Brands Inc., a publicly traded global franchising company based in Beverly Hills that acquired and developed casual-dining restaurant concepts, including Fatburger, Johnny Rockets, Hurricane Grill and Wings, Yalla Mediterranean, and Ponderosa and Bonanza Steakhouses.

Wiederhorn is expected to be arraigned this afternoon in United States District Court in downtown Los Angeles. The remaining defendants are expected to be arraigned during the first week of June.

According to the indictment, Wiederhorn began disguising distributions to himself in the form of shareholder loans approximately 30 years ago, when he served as CEO of another company, Wilshire Credit Corporation (WCC). After forgiving himself some $65 million in putative debts owed to WCC, Wiederhorn resolved a federal grand jury investigation into that and related conduct by pleading guilty in 2004 in the District of Oregon to the payment of illegal gratuities and filing a false federal tax return. FOG and its affiliates are successor corporate entities to WCC and its affiliates.

From at least 2006 through 2021, Wiederhorn was the subject of efforts by the IRS to collect personal income tax and trust fund taxes he owed personally and as a responsible party and guarantor for entities, including FOG, the indictment states. The IRS efforts included levies and liens on Wiederhorn’s accounts and assets due to outstanding taxes he owed. The IRS, beginning in 2016, assessed Wiederhorn penalties for FOG’s failure to pay trust fund taxes and failure to establish a payment plan. By March 2021, Wiederhorn’s unpaid personal income tax liability to the IRS totaled approximately $7,743,952, inclusive of statutory interest and penalties, according to the indictment.

Beginning no later than 2010 and continuing through early 2021, Wiederhorn allegedly caused employees of FAT and FOG to compensate him by distributing to him approximately $47 million for his personal use and benefit. Wiederhorn, Amon, Hershinger and others miscategorized these distributions as “shareholder loans” and failed to disclose as reportable compensation to the IRS, SEC and the broader investing public, the indictment alleges.

Neither FAT nor FOG required Wiederhorn to post collateral, make interest payments or observe any of the other commercial requirements and realities of true loans, according to the indictment, which adds that Wiederhorn generally determined for himself the amount, timing and form of both extension and forgiveness of these “loans” without informing the directors of either FAT or FOG.

“After defendant FAT became an issuer of securities through its IPO [initial public offering], defendant Wiederhorn caused millions of dollars from defendant FAT’s accounts to be disbursed to defendant Wiederhorn and his family members for their personal benefit,” according to the indictment. “These disbursements were used to fund the purchase of private-jet travel, vacations, a Rolls Royce Phantom, other luxury automobiles, jewelry, and a piano.”

The indictment goes on to outline several transfers of hundreds of thousands of dollars that Wiederhorn caused others at FAT to make directly from FAT accounts to pay Wiederhorn’s personal American Express credit-card debts.

“Wiederhorn, posing as both ‘lender’ and ‘borrower,’ caused defendant FAT and FOG to extend to him and then ‘forgive’ tens of millions of dollars in distributions made in the fraudulent form of loans – all while paying no income tax on these distributions and, in fact, using them to generate net operating losses to provide defendant FAT with financially beneficial tax treatment,” the indictment alleges.

Although FAT publicly claimed that it was “cooperating with the government” in connection with this investigation, after members of FAT’s Board communicated with the government, Wiederhorn removed every director other than himself in March 2023 and reconstituted FAT’s Board with a majority of non-independent directors under his control, according to the indictment.

Wiederhorn is charged with one count of endeavoring to obstruct the administration of the Internal Revenue Code, six counts of tax evasion, and one count of false statements and omission of material facts in statements to accountants in connection with audits and reviews.

Both Wiederhorn and Hershinger are charged with four counts of wire fraud, two counts of false statements and omission of material facts in statements to accountants in connection with audits and reviews, and one count of certifying faulty financial reports.

Wiederhorn, Hershinger and FAT are charged with two counts of extension and maintenance of credit in the form of personal loan from issuer to executive officer.

Hershinger is also charged with one count of making false statements to federal investigators, including, among things, denying that company funds were being used to pay Wiederhorn’s personal American Express bill.

Amon is charged with four counts of aiding and assisting the filing of false tax returns.

Any investors who believe they were victims of the crimes alleged in the indictment are encouraged to go to https://www.justice.gov/usao-cdca/united-states-v-andrew-wiederhorn-william-j-amon-rebecca-d-hershinger-and-fat-brands-inc for further information and updates regarding this matter.

Wiederhorn has also been charged in a separate indictment for illegally possessing a firearm and ammunition after being convicted of a felony.

An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The FBI and IRS Criminal Investigation are investigating this matter.

Separately, the U.S. Securities and Exchange Commission has also filed a civil enforcement action against Wiederhorn, Hershinger, FAT, and another FAT executive.

This case is being prosecuted by Assistant United States Attorneys Adam P. Schleifer of the Corporate and Securities Fraud Strike Force and Kevin B. Reidy of the Major Frauds Section.

LOS ANGELES – A Compton man who led a Southern California-based drug trafficking organization that shipped kilogram quantities of cocaine to Alaska via commercial flights and U.S. mail pleaded guilty today to a federal narcotics charge.

Raul Cisneros Jr., 45, pleaded guilty to one count of possession with intent to distribute cocaine. He has been in federal custody since October 2020.

According to his plea agreement and other court documents, from at least July 2014 to August 2016, Cisneros managed the operations of a drug trafficking outfit that sold cocaine and methamphetamine to customers.

In October 2015, law enforcement stopped Cisneros in his car while he was en route to an accomplice’s home to pick up money. In his car, Cisneros possessed approximately $5,003 in cash, which were drug proceeds. He also possessed approximately 10 kilograms (22.1 pounds) of cocaine packaged in five separate bundles, which he intended to sell to customers.

After obtaining a search warrant for Cisneros’ home, law enforcement seized from Cisneros’ kitchen cabinets approximately 30.7 kilograms (66.1 pounds) of cocaine, approximately 167.7 grams of crack cocaine, and approximately 3.6 kilograms (1.1 pounds) of methamphetamine. Law enforcement also found hundreds of used empty green cellophane wrappers and a money counter, which Cisneros used to facilitate his drug distribution operation.

Law enforcement also seized from Cisneros’ kitchen four firearms and 72 rounds of ammunition during this search.

In total, agents recovered $568,357 in cash proceeds from drug deals and – in the trunk of Cisneros’ white Honda Accord vehicle, which was parked in the driveway of his residence – approximately 7.02 kilograms (15.5 pounds) of cocaine wrapped in seven packages of green cellophane stashed inside a bag. Cisneros admitted in his plea agreement to intending to distribute the cocaine to others as part of his drug trafficking operation.

Cisneros is the final defendant to plead guilty in this case. Federal prosecutors have secured eight convictions in this matter.

United States District Judge Fernando M. Olguin scheduled an August 8 sentencing hearing, at which time Cisneros will face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment.

The FBI and Drug Enforcement Administration investigated this matter.  Substantial assistance was provided by the Los Angeles County Sheriff’s Department.  This investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).

Assistant United States Attorneys Kathy Yu and Chelsea Norell of the Violent and Organized Crime Section are prosecuting this case.

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

LOS ANGELES – An Irvine man has been charged in a federal criminal complaint for allegedly orchestrating a scheme to steal high-value violins and then allegedly robbing a bank in Orange County, the Justice Department announced today.

Mark Meng, 57, is charged with bank robbery and wire fraud in a complaint filed on May 7. He has been in state custody since April 11 and is expected to make his initial appearance in United States District Court on May 9.

According to an affidavit filed with the complaint, from August 2020 to April 2023, Meng engaged in a scheme to steal high-end violins and then resell them for his personal gain. The stolen violins included:

• one Lorenzo Ventapane violin, dated 1823, and valued at $175,000; a
• one Guilio Degani violin, dated 1903, and valued at $55,000;
• one Caressa & Francais violin, dated 1913, and valued at $40,000;
• one Gand & Bernardel violin, dated 1870, and valued at $60,000; and
• one Francais Lott violin bow, stamped “Lupot,” and valued at $7,500. 

Meng allegedly contacted violin shops across the country to express interest in receiving violins on loan for a trial period to determine if he wished to purchase the instruments. He allegedly gained the trust of these stores by representing himself as a collector, and in some cases, he purchased violin bows before asking for violin trial periods. After receiving each violin on a trial-period basis, Meng kept the violins and ultimately sold them to a violin dealer in Los Angeles who was unaware of their stolen origin.

After Meng knew he was under investigation by the FBI for the stolen violins, Meng on April 2 allegedly entered a bank branch in Irvine, wearing a hat, sunglasses, a bandana covering his face, and blue latex gloves. Meng allegedly gave the bank teller a note stating “$18,000. - Withdraw. Please. Stay Cool! No harm. Thx.” After obtaining money from the bank teller, Meng fled the bank in his white minivan, according to the complaint. 

Law enforcement personnel determined that a latent print from the robbery note was identified as belonging to Meng, the affidavit states. Officers ultimately tracked the minivan back to Meng’s house where Meng was arrested several days later.

A complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

If convicted, Meng would face a statutory maximum sentence of 20 years in federal prison on both the bank robbery count and the wire fraud count.

The FBI’s Art Crime Team investigated this matter, with assistance from the Irvine Police Department and the Glendale Police Department.

Assistant United States Attorneys Laura Alexander and Mark A. Williams, both of the Environmental Crimes and Consumer Protection Section, are prosecuting this case.

LOS ANGELES – A Japanese-language interpreter has agreed to plead guilty to federal criminal charges for illegally transferring almost $17 million from a Major League Baseball (MLB) player’s bank account – without the player’s knowledge or permission – to pay off his own substantial gambling debts incurred with an illegal bookmaking operation and for signing a false tax return, the Justice Department announced today.

Ippei Mizuhara, 39, of Newport Beach, has agreed to plead guilty to one count of bank fraud, which carries a statutory maximum sentence of 30 years in federal prison, and one count of subscribing to a false tax return, which carries a sentence of up to three years in federal prison.

Mizuhara, who is charged in a two-count information filed today, is expected to enter a plea of guilty to the charges in United States District Court in the coming weeks. His arraignment is scheduled for May 14.

“The extent of this defendant’s deception and theft is massive,” said United States Attorney Martin Estrada. “He took advantage of his position of trust to take advantage of Mr. Ohtani and fuel a dangerous gambling habit. My office is committed to vindicating victims throughout our community and ensuring that wrongdoers face justice.”

“Our joint investigation with Homeland Security Investigations clearly showed Mr. Mizuhara not only stole from Mr. Ohtani, but also that he lied to the IRS about his income, “said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Mr. Mizuhara exploited his relationship with Mr. Ohtani to bankroll his own irresponsibility. In cases where we are able to identify them, we make every effort to make things right for victims, and this is one of those cases.”

“This investigation into Mr. Mizuhara and subsequent plea highlight the threat posed by financial crimes in the Los Angeles-area,” said HSI Los Angeles Special Agent Eddy Wang. “The HSI-led El Camino Real Financial Crimes Task Force is dedicated to protecting all victims of financial fraud from all walks of life.”

According to his plea agreement also filed today, Mizuhara was the translator and de facto manager of a professional baseball player identified in court documents as “Victim A,” but who in fact was MLB star Shohei Ohtani. As part of his job duties, Mizuhara regularly interacted with Ohtani’s sports agents and financial advisors – who did not speak Japanese – on behalf of Ohtani, who did not speak English. Although Mizuhara was an employee of the Los Angeles Angels MLB team, for whom Ohtani played from 2018 to 2023, and, later, the Los Angeles Dodgers, for whom Ohtani has played since 2024, Ohtani paid him separately for the additional work of driving him to meetings and interpreting for non-baseball-related activities.

In March 2018, Mizuhara accompanied Ohtani to a bank in Phoenix to help him open a bank account to deposit his MLB salary. Inside the bank branch, Mizuhara interpreted for Ohtani when the bank employee provided Ohtani the login information for this bank account.

Beginning in September 2021, Mizuhara began placing sports bets with an illegal bookmaker. Shortly thereafter, Mizuhara began to lose bets and quickly became indebted to the bookmaker. Unable to pay his gambling debts, Mizuhara orchestrated a scheme to deceive and cheat the bank to fraudulently obtain money from the account.

From no later than November 2021 to March 2024, Mizuhara used Ohtani’s password to successfully sign into the bank account and then changed the account’s security protocols without Ohtani’s knowledge or permission. Specifically, Mizuhara changed the registered email address and telephone number on the account so bank employees would call him – not Ohtani – when attempting to verify wire transfers from the account.

In furtherance of the scheme, Mizuhara impersonated Ohtani and used Ohtani’s personal identifying information to deceive the bank’s employees into authorizing wire transfers from the bank account. In total, Mizuhara called the bank and impersonated Ohtani on approximately 24 occasions.

During this time, Mizuhara regularly logged into Ohtani’s bank account and initiated wire transfers from the account to the bookmaker and his associates as payments for gambling debts. For example, on June 20, 2023, Mizuhara accessed the account without Ohtani’s permission and transferred $500,000 to one of the bookmaker’s associates.

In addition, in September 2023, Mizuhara needed $60,000 worth of dental work and Ohtani agreed to pay for it via a check drawn on a business account at a different bank. However, Mizuhara provided his dentist Ohtani’s debit card number for the bank account Ohtani had opened in Phoenix, charged $60,000 to that account, then deposited the $60,000 check into Mizuhara’s personal bank account.

From January 2024 to March 2024, Mizuhara purchased approximately $325,000 worth of baseball cards from online resellers such as eBay from Ohtani’s bank account with the intent to resell them later and for his own personal benefit.

When Ohtani’s sports agent and financial advisors asked Mizuhara for access to the bank account, Mizuhara lied and said Ohtani did not want them to access the account because it was private. In fact, Mizuhara did not want them to know that he had been stealing from Ohtani and had fraudulently obtained more than $16,975,010 from him.

Mizuhara also admitted in his plea agreement that in February 2024 he willfully made and subscribed to a false individual federal income tax return for the tax year 2022. On that tax return, Mizuhara falsely claimed that his total taxable income for that year was $136,865 when in fact he knew the amount was substantially higher and he knowingly failed to report additional income of $4.1 million. The source of the unreported income was from his scheme to defraud the bank.

Mizuhara, under penalty of perjury, signed the false income tax return and admitted in his plea agreement that he owes approximately $1,149,400 in additional taxes for the tax year 2022, plus additional interest and penalties.

IRS Criminal Investigation and Homeland Security Investigations are investigating this matter.

Assistant United States Attorneys Jeff Mitchell of the Major Frauds Section and Dan Boyle of the Environmental Crimes and Consumer Protection Section, and Special Assistant United States Attorney Rachel N. Agress are prosecuting this case.

The Justice Department announced today that Hyundai Capital America has agreed to pay $333,941 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by illegally repossessing 26 vehicles owned by servicemembers. 

“Members of our Armed Forces should not have to worry about having their cars repossessed while they are in military service,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains steadfast in its commitment to enforcing laws that safeguard the rights of our servicemembers so that they can devote their full energy and attention to the defense of our country.”

“We are fully committed to protecting the rights of servicemembers, who give so much to protecting our country,” said U.S. Attorney Martin Estrada for the Central District of California. “Something as simple as a vehicle repossession can have a significant impact on a servicemember’s peace of mind as he or she deploys in defense of the United States. We will continue to enforce the rights of servicemembers so that they can perform their duties without having to worry about unlawful actions at home.”

The SCRA is a federal law that provides legal and financial protections for servicemembers and their families. The law prevents an auto finance or leasing company from repossessing a servicemember’s vehicle without first obtaining a court order, as long as the servicemember made at least one payment on the vehicle before entering military service.

In a complaint filed in the U.S. District Court for the Central District of California, the department alleges that in June 2015, Navy Airman Jessica Johnson faxed Hyundai her enlistment orders with a statement that her vehicle could not be repossessed without a court order while she was on active duty service. On July 27, 2017, she told a Hyundai customer service agent that she was still in the military. Nevertheless, on or about July 30, 2017, Hyundai repossessed her 2014 Hyundai Elantra without a court order. In October 2017, Hyundai sold the car for $7,400. At the time, Navy Airman Johnson still owed $13,796 on the auto loan.

The complaint also alleges that between April 15, 2015, and May 21, 2023, Hyundai unlawfully repossessed 25 additional motor vehicles owned or leased by SCRA-protected servicemembers.

Under the consent order, Hyundai has agreed to pay $10,000 plus any lost equity to each servicemember whose vehicle was repossessed and a $74,941 payment to the United States. The consent order also requires Hyundai to repair the servicemembers’ credit, provide SCRA training to its employees and implement policies and procedures that comply with the SCRA.

Hyundai Capital America is a wholly owned subsidiary of Hyundai Motor America and Kia America and one of the top10 captive auto-finance companies in the United States, providing indirect vehicle financing for retail and lease customers of Hyundai, Genesis and Kia dealerships nationwide.

The Civil Rights Division’s Housing and Civil Enforcement Section and the U.S. Attorney’s Office for the Central District of California jointly handled this case. Since 2011, the Justice Department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.

Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at www.legalassistance.law.af.mil.

LOS ANGELES – The Justice Department announced today that Hyundai Capital America has agreed to pay $333,941 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by illegally repossessing 26 vehicles owned by servicemembers. 

“We are fully committed to protecting the rights of servicemembers, who give so much to protecting our country,” said U.S. Attorney Martin Estrada for the Central District of California. “Something as simple as a vehicle repossession can have a significant impact on a servicemember’s peace of mind as he or she deploys in defense of the United States. We will continue to enforce the rights of servicemembers so that they can perform their duties without having to worry about unlawful actions at home.”

“Members of our Armed Forces should not have to worry about having their cars repossessed while they are in military service,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains steadfast in its commitment to enforcing laws that safeguard the rights of our servicemembers so that they can devote their full energy and attention to the defense of our country.”

The SCRA is a federal law that provides legal and financial protections for servicemembers and their families. The law prevents an auto finance or leasing company from repossessing a servicemember’s vehicle without first obtaining a court order, as long as the servicemember made at least one payment on the vehicle before entering military service.

In a complaint filed in the U.S. District Court for the Central District of California, the department alleges that in June 2015, Navy Airman Jessica Johnson faxed Hyundai her enlistment orders with a statement that her vehicle could not be repossessed without a court order while she was on active duty service. On July 27, 2017, she told a Hyundai customer service agent that she was still in the military. Nevertheless, on or about July 30, 2017, Hyundai repossessed her 2014 Hyundai Elantra without a court order. In October 2017, Hyundai sold the car for $7,400. At the time, Navy Airman Johnson still owed $13,796 on the auto loan.

The complaint also alleges that between April 15, 2015, and May 21, 2023, Hyundai unlawfully repossessed 25 additional motor vehicles owned or leased by SCRA-protected servicemembers.

Under the consent order, Hyundai has agreed to pay $10,000 plus any lost equity to each servicemember whose vehicle was repossessed and a $74,941 payment to the United States. The consent order also requires Hyundai to repair the servicemembers’ credit, provide SCRA training to its employees and implement policies and procedures that comply with the SCRA.

Hyundai Capital America is a wholly owned subsidiary of Hyundai Motor America and Kia America and one of the top10 captive auto-finance companies in the United States, providing indirect vehicle financing for retail and lease customers of Hyundai, Genesis and Kia dealerships nationwide.

Assistant United States Attorney Katherine Hikida of the Civil Division’s Civil Rights Section and attorneys from the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division handled this matter. Since 2011, the Justice Department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.

Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at legalassistance.law.af.mil.

LOS ANGELES – A federal grand jury has returned a six-count indictment against a Compton mother and son for allegedly forcing two 13-year-old victims to engage in sexual activity for money, the Justice Department announced today.

Daisy Pollard-Gilliam, 41, a.k.a. “Queen,” and her son, Reuben Gilliam, 24, a.k.a. “Tre,” are charged with one count of conspiracy to commit sex trafficking of a minor and two counts of sex trafficking of a minor. Reuben Gilliam also is charged with one count of production of child pornography and one count of distribution of child pornography. Daisy Pollard-Gilliam also is charged with one count of being a felon in possession of a firearm and ammunition.

Reuben Gilliam is in state custody on unrelated charges and is expected to be transferred over to federal custody in the coming weeks. Daisy Pollard-Gilliam was arrested on April 24 and a federal magistrate judge ordered her jailed without bond. Her arraignment is scheduled for May 14 in United States District Court in downtown Los Angeles.

According to court documents, the victims were walking down a street in Bell Gardens at approximately 2 a.m. on June 3, 2023, when a vehicle containing three men – including Reuben Gilliam – stopped next to them. One of the men exited the vehicle and told the minor victims to get in. The victims were then driven to a residence in Lynwood.

Throughout the next week, both victims were required to engage in sexual activity with Reuben Gilliam, Daisy Pollard-Gilliam and unidentified commercial sex customers to make money, the indictment alleges. The customers told one victim that they paid $100 to have sexual intercourse with her and the defendants collected the cash after the customer had sex with the victims, according to court documents.  The defendants allegedly also directed the victims to dress in lingerie and pose for pictures to be used to advertise commercial sex.

After spending a few nights at the Lynwood residence, the defendants allegedly saw missing children’s flyers in circulation on social media – identifying both victims as 13 years old – seeking the minor victims’ whereabouts. The victims were then transferred to different locations in Los Angeles County.

On the evening of June 9, 2023, law enforcement officials rescued the victims from a recreational vehicle in Gardena. Among the items law enforcement seized during the rescue were clothing, shoes, eyewear, and one cellphone that the suspects allegedly gave the victims so they could call the suspects if they were in trouble. The victims allegedly used the cellphone to text and call Daisy Pollard-Gilliam on multiple occasions.

On June 6, 2023, Daisy Pollard-Gilliam distributed images and videos of the victims to an inmate at Kern Valley State Prison in Delano, California, according to court documents. A review of Reuben Gilliam’s Instagram account made pursuant to a search warrant revealed that on June 4, 2023, he communicated with other Instagram users regarding his commercial sex trafficking of the two victims, according to court documents.

In April 2024, Pollard-Gilliam allegedly possessed a semi-automatic pistol and 25 rounds of ammunition. She is permitted to possess neither because of her felony conviction in Los Angeles Superior Court in 2021 for child abandonment.

An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

If convicted, the defendants would face a mandatory minimum sentence of 15 years in federal prison and a statutory maximum sentence of life in federal prison.

The FBI and the Los Angeles County Sheriff’s Department are investigating this matter.

Assistant United States Attorneys Damaris Diaz of the Violent and Organized Crime Section and Angela C. Makabali of the Cyber and Intellectual Property Crimes Section are prosecuting this case.

Any member of the public who has information related to child sex crimes is encouraged to call the FBI’s Los Angeles Field Office at (310) 477-6565 or report tips online at https://tips.fbi.gov.

RIVERSIDE, California – The owner and sole physician at a Bellflower medical clinic has pleaded guilty to submitting millions of dollars’ worth of false claims to a Medi-Cal health care program that provides family planning services to low-income and uninsured patients, causing more than $2.5 million in losses, the Justice Department announced today.

Robert Eyzaguirre, 77, of Torrance, pleaded guilty to one count of health care fraud, a felony that carries a statutory maximum sentence of 10 years in federal prison. 

According to his plea agreement, Eyzaguirre owned and operated Dr. Robert’s Medical Center, a Bellflower-based medical clinic enrolled as a Family Planning, Access, Care and Treatment (Family PACT) provider run through the Medi-Cal public health program that California administered under Medicaid. At this clinic, Eyzaguirre employed and supervised Gary Lee Didio, 54, of Huntington Beach, and Sandra Rios, 51, of South Los Angeles.

From at least December 2013 through January 2020, Eyzaguirre conspired with Didio and Rios to submit more than $4.6 million in fraudulent claims to the Family PACT program for family planning services that were never provided. Specifically, Rios picked random names from an online phone-and-address directory and created fake patient files, including inserting fake vital signs and patient notes. 

Eyzaguirre signed the fake patient files, falsely representing that he had provided family planning services to those patients. Eyzaguirre sometimes signed blank patient forms before the false vital signs and notes had been added. The fake patient files were then submitted to the Family PACT program for reimbursement. The Medi-Cal program paid more than $2.5 million on the fraudulent claims submitted by Dr. Robert’s Medical Center. 

Eyzaguirre also falsely certified in the fake patient files that laboratory tests were medically necessary. Didio and Rios then referred the names of fake patients to a laboratory in Northern California, which then paid an illegal kickback of $30 cash for each referral. In total, the laboratory paid more than $372,000 in illegal kickbacks for the referrals of fake Family PACT patients from Dr. Robert’s Medical Center. The Medi-Cal program paid more than $1 million on the fraudulent claims submitted by the laboratory related to the scheme. 

When Eyzaguirre learned that law enforcement was investigating the fraudulent scheme, he attempted to conceal the criminal activity by instructing Didio to remove the fake patient files from Dr. Robert’s Medical Center and hide them offsite. Once the files had been moved, Eyzaguirre attempted to shred the fake patient files to prevent law enforcement from discovering them. 

Eyzaguirre admitted in his plea agreement to abusing his position of trust as a physician and obstructing justice. 

Rios and Didio have pleaded guilty to conspiring to receive illegal remunerations for healthcare referrals. They are expected to be sentenced in the coming months.

United States District Judge Jesus G. Bernal scheduled a sentencing hearing for Eyzaguirre on October 28.

The United States Department of Health and Human Services Office of Inspector General and the California Department of Justice, Division of Medi-Cal Fraud and Elder Abuse investigated this matter. 

Assistant United States Attorney Jason C. Pang of the General Crimes Section is prosecuting this case.

LOS ANGELES – A Riverside County man, who admitted to selling fentanyl to a 33-year-old man who ingested the powerful synthetic opioid and suffered a fatal overdose, was sentenced today to 240 months in federal prison.

Sergio Maya, 33, of Lake Elsinore, was sentenced by United States District Judge Mark C. Scarsi, who also ordered him to pay $19,848 in restitution.

Maya pleaded guilty on February 12 to one count of possession with intent to distribute fentanyl. The 20-year prison sentence is the maximum possible penalty under federal law.

On the early morning of May 26, 2022, Maya met the victim – identified in court documents as “C.A.” – near the victim’s Lake Elsinore apartment and knowingly distributed fentanyl to the victim. Later that day, the victim used the fentanyl Maya had distributed to him and then suffered a fatal overdose.

“The recklessness of this defendant resulted in the victim’s untimely death and his loved ones in mourning,” said United States Attorney Martin Estrada. “Today’s 20-year prison sentence sends a message to drug dealers who kill their customers that my Office will seek and obtain the stiffest penalties under the law.”

“We are deeply appreciative of our ongoing partnership with the U.S. Attorney's Office in combating perpetrators who distribute deadly fentanyl within our community,” said Riverside County District Attorney Michael A. Hestrin. “Our collaboration with the U.S. Attorney's Office on cases incorporating federal statutes often allows for more significant prison sentences for these dangerous criminals. I extend my sincere gratitude to our dedicated staff for their diligent investigation of the Maya case, and to the U.S. Attorney's Office for their successful prosecution efforts. I hope this verdict brings some measure of closure and justice to the victim’s family members.”

“The sentencing of this defendant reinforces the steadfast commitment of the DEA and our law enforcement partners to holding individuals accountable for the distribution of illegal drugs poisoning our nation,” said Matthew Allen, DEA Special Agent in Charge Los Angeles Field Division. “I am proud of the hard work and driven determination of our Riverside District Office investigators and the entire prosecution team, all of whom work tirelessly every day to keep our communities safe from the fentanyl epidemic.”

“We are grateful for the partnership with the Department of Justice and the dedication of our assistant U.S. attorneys who ensure justice for the victims and their families who have been harmed by the distribution of fentanyl,” said Riverside County Sheriff Chad Bianco.

The Drug Enforcement Administration and the Riverside County Sheriff’s Office investigated this matter.

Special Assistant United States Attorney Stephen T. Merrill of the Riverside Branch Office prosecuted this case.

RIVERSIDE, California – The former CEO and executive director of two San Bernardino County nonprofit organizations was arrested today on an indictment alleging she embezzled federal grant money intended for the nonprofits, using more than $225,000 of it for unauthorized expenditures such as wedding and travel expenses and cryptocurrency.

Donise Warren, 51, a.k.a. “Donise Warren-Jackson,” “Donise Jackson,” and “Donise Conerly,” of Canyon Lake, is charged with 15 counts of embezzlement from organizations receiving federal funds and 15 counts of embezzlement of government property. 

Each charge is a felony punishable by up to 10 years in federal prison. Warren was arraigned this afternoon in United States District Court in Riverside. She pleaded not guilty to the charges against her. A federal magistrate judge ordered her released on $75,000 bond. Warren’s trial is scheduled for July 1.

Warren was the president, CEO, and executive director of the Citadel Community Development Corporation (CCDC), whose stated mission was to assist at-risk individuals with accessing affordable housing, career services, and education services. Warren was also the president, CEO, and executive director of the Citadel Community Care Facility (CCCF), another nonprofit operating at the same location as CCDC.

According to the indictment, which a grand jury returned on May 1, Warren controlled CCDC from no later than March 2016 until at least October 2023. During that time, on CCDC’s behalf, Warren applied for three grants from the United States Department of Labor Employment and Training Administration (DOL-ETA). DOL-ETA awarded CCDC each of these grants, which required that the money be used on authorized expenditures. Warren allegedly embezzled approximately $101,000 of CCDC’s grant money and caused it to be used on wedding and travel expenses, including a $25,000 payment to her spouse’s personal credit card.

Warren controlled CCCF from at least March 2020 to approximately February 2023.  During that time, on CCCF’s behalf, Warren applied for a United States Department of Health and Human Services Substance Abuse and Mental Health Services Administration (SAMHSA) grant. After CCCF was awarded the SAMHSA grant, Warren embezzled approximately $127,500 of the grant money to her personal Coinbase account, where she purchased various cryptocurrencies.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

The United States Department of Labor Office of Inspector General and the United States Department of Health and Human Services Office of Inspector General investigated this matter.

Assistant United States Attorney Cory L. Burleson of the Riverside Branch Office is prosecuting this case.

RIVERSIDE, California – A Riverside County man who is the lead defendant in a criminal case involving an outfit that trafficked pound quantities of methamphetamine from Mexico into the Inland Empire was sentenced today to 252 months in federal prison.

Timoteo Gomez, 51, of Riverside, was sentenced by United States District Judge Jesus G. Bernal. Gomez has been in federal custody since his June 2021 arrest in this case.

Gomez pleaded guilty in January 2022 to one count of conspiracy to distribute and possess with intent to distribute methamphetamine.

From at least April 2020 until August 2020, Gomez and others purchased methamphetamine from their suppliers in Mexico as well as Los Angeles and Riverside counties. Other members of the conspiracy further distributed methamphetamine in the Inland Empire.

In April 2020, Gomez and others smuggled 46.6 pounds (21.2 kilograms) of methamphetamine from Mexico across the U.S. port of entry at Calexico and into Riverside County. In May 2020, another co-conspirator attempted to drive a load of 90.4 pounds (41 kilograms) of methamphetamine into the United States from Mexico through the San Ysidro port of entry.

In total, law enforcement seized more than 150 pounds (68 kilograms) of methamphetamine and $31,035 in cash during this investigation.

Federal prosecutors have secured 16 convictions so far in this case.

The FBI’s Inland Empire Safe Streets Task Force investigated this matter. The Task Force is a joint federal and state gang task force that includes the FBI; the Drug Enforcement Administration; IRS Criminal Investigation; the Riverside County Sheriff’s Department; and the Riverside Police Department. The FBI’s Safe Streets Task Force received assistance during the investigation from the San Bernardino County Sheriff’s Department; U.S. Customs and Border Protection; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the United States Marshals Service.

The investigation leading to these federal charges focused on the criminal activities of the Riverside-based Casa Blanca Rifa criminal street gang to combat drug trafficking and associated violence in Riverside and the surrounding community.

Assistant United States Attorney Eli A. Alcaraz of the Public Corruption and Civil Rights Section prosecuted this case.

RIVERSIDE, California – A San Gabriel Valley man was sentenced today to 240 months in federal prison for hiring a hitman in an attempt to kill two men – his former lawyer and a long-time litigation opponent – and for hiring someone to burn a North Hollywood apartment complex he owned to force its low-income residents to leave.

Arthur Raffy Aslanian, 55, of La Cañada Flintridge, was sentenced by United States District Judge Jesus G. Bernal, who also ordered Aslanian to pay $15,371 in restitution and fined him $200,000.

At the conclusion of a five-day trial, a jury in July 2023 found Aslanian guilty of one count of use of interstate commerce facilities in the commission of murder-for-hire, one count of conspiracy to commit arson, one count of attempted arson, and one count of arson of a building used in interstate commerce.

“This defendant thought he could get away with murder by financing a murder plot against two of his rivals,” said United States Attorney Martin Estrada. “He will now serve a well-deserved lengthy prison sentence. This case should serve as a cautionary tale to those who would resort to violence to settle their disputes: You will be caught and the consequences will be severe.”

Aslanian conspired with Sesar Rivera, 41, of North Hollywood, to hire a hitman to murder two people – identified in court documents as “M.Y.” and “S.E.”

M.Y. was a lawyer who represented Aslanian in a bankruptcy proceeding in which Aslanian had prevailed but then refused to pay more than $261,000 in legal fees and expenses to M.Y.’s law firm. In April 2022, M.Y. sent a demand letter to Aslanian requesting to mediate the dispute and stating he was prepared to sue Aslanian if the mediation failed.

S.E. was a litigant who defeated Aslanian in court after Aslanian tried to take possession of the Brentwood home in which S.E.’s parents lived.

In April 2022, Rivera – Aslanian’s then-employee – met with an individual who was a gang member and convicted felon. Rivera told the individual that a real estate businessman named “Arthur” wanted to pay him to kill M.Y. and S.E.

In July 2022, Rivera again met with the individual and said “Arthur” wanted the killing done as soon as possible. Rivera showed the individual information about M.Y. The individual secretly recorded a portion of this July 2022 in-person meeting on his phone and provided a copy of the recording to law enforcement. Rivera also promised the individual that Aslanian would pay $20,000 for the murder once Rivera had photographic proof the murder had been committed.

On August 10, 2022, Rivera again met with the individual and told him to focus on murdering S.E. before killing M.Y. On August 19, 2022, Rivera used the Facebook Messenger application to send the individual a multimedia message with a screenshot of victim S.E.’s Facebook profile, including S.E.’s picture and business name, to assist the individual in locating and murdering S.E.

Law enforcement contacted and warned M.Y. and S.E. of the murder plots.

On September 7, 2022, law enforcement detained and questioned Rivera, who later agreed to cooperate with them.

Aslanian was arrested shortly after a September 15, 2022, meeting in which Rivera showed him a staged murder photograph of S.E.

“ATF saved the lives of two individuals in this case,” said Christopher Bombardiere, Special Agent in Charge of ATF’s Los Angeles Field Division. “We will continue to work tirelessly to seek out and build cases against these violent criminals who have no moral compass and instead are driven by greed.”

In a separate incident in March 2022, Aslanian, through Rivera, paid an individual a few hundred dollars for successfully setting fire to a rental property in North Hollywood he owned so the remaining low-income tenants would be forced to leave the property. A previous attempted arson of the building in February 2022 was unsuccessful.

Rivera pleaded guilty in March 2023 to one count of conspiracy and one count of use of interstate commerce facilities in the commission of murder-for-hire. He faces up to 10 years in federal prison for each count at his July 8 sentencing hearing.

The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Los Angeles Police Department investigated this matter.

Assistant United States Attorneys Kevin J. Butler of the Violent and Organized Crime Section, Kevin B. Reidy of the Major Frauds Section, and Eli A. Alcaraz of the Public Corruption and Civil Rights Section prosecuted this case.

LOS ANGELES – A Diamond Bar man was sentenced today to 12 months in federal prison for disrupting a “Stop Asian Hate” rally in March 2021 by running a red light and driving through a crowded crosswalk of peaceful demonstrators while shouting racial slurs and epithets.

Steve Lee Dominguez, 58, was sentenced by United States District Judge Otis D. Wright II.

Dominguez pleaded guilty in October 2023 to one count of bias-motivated interference with federally protected activities.

“This defendant’s hateful attack was designed to curtail the rights of peaceful demonstrators,” said United States Attorney Martin Estrada. “While differences of opinion are part of a healthy democracy, we cannot allow people to commit acts of violence against those with whom they disagree. My office will continue to safeguard civil rights for all members of our community.”

“Mr. Dominguez attacked innocent civilians who were simply standing up for a righteous cause – to protect Asian members of our society from hateful attacks,” said Mehtab Syed, the Acting Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Today’s sentence represents the FBI’s commitment to ensuring that Constitutionally-protected rights are not violated and those who deny them will be held accountable.” 

“We are deeply committed to protecting everyone’s constitutional rights including freedom of speech, and when actions turn violent and cross the line into criminal misconduct they will not be tolerated,” said Los Angeles County Sheriff Robert Luna. “The Sheriff’s Department will continue to work with our justice partners to ensure our diverse communities within Los Angeles County are protected for exercising their civil rights without fear of being attacked or harassed.”

A “Stop Asian Hate” rally occurred on March 21, 2021, in Diamond Bar. The rally was to raise awareness about the increase in hate crimes and hate incidents against members of the Asian American Pacific Islander (AAPI) community both locally and nationally – including the murders of six Asian American women five days earlier in Atlanta.

A group of rally participants assembled at the intersection of Diamond Bar Boulevard and Grand Avenue, carrying American flags and large signs in support of their cause. The demonstrators peacefully gathered and lawfully crossed the streets using the marked pedestrian crosswalk when they had the right of way.

During the rally, Dominguez was driving a black Honda Civic sedan and was stopped at a red light at the intersection. Dominguez yelled, “Go back to China!” and other racial slurs and profanities at the demonstrators. He then deliberately drove his car through the intersection’s crosswalk at the red light, made an illegal U-turn into oncoming traffic, and cut off the route of several rally participants lawfully crossing the street, primarily women and a young child.

One of the victims was an Asian woman carrying a sign that read, “Stop Asian Hate.” Another victim was a minor Black female rally participant who carried a sign that read, “End the Violence Against Asians.” Another person who was cut off in the crosswalk was a 9-year-old child, and Dominguez’s car narrowly missed her and other victims. No injuries were reported.

Dominguez then pulled his car over, got out of the car and continued to yell racial epithets – including the n-word – and threats at the demonstrators. He then called the police, identified himself as “John Doe” and falsely reported to police that the rally participants were blocking the street and he had to run a red light “because they were about to trample my car,” according to evidence presented at trial. He also requested that police “get some control out” at the intersection.

The FBI investigated this matter. The Los Angeles County Sheriff’s Department initially responded to the scene and assisted in this matter.

Assistant United States Attorneys Frances S. Lewis of the Public Corruption and Civil Rights Section and Suria M. Bahadue of the Criminal Appeals Section prosecuted this case.

Any member of the public who has information related to hate crimes is encouraged to call the FBI’s Los Angeles Field Office at (310) 477-6565 or report tips online at https://tips.fbi.gov.

LOS ANGELES – The captain of the P/V Conception – a Santa Barbara-based dive boat that caught fire and sank near Santa Cruz Island on Labor Day in 2019, resulting in the deaths of 33 passengers and one crew member – was sentenced today to 48 months in federal prison.

Jerry Nehl Boylan, 70, of Santa Barbara, was sentenced by United States District Judge George H. Wu. A restitution hearing was scheduled for July 11.

At the conclusion of a 10-day trial, a jury found Boylan guilty in November 2023 of one count of misconduct or neglect of ship officer – an offense commonly called “seaman’s manslaughter.”

The Conception was a 75-foot, wood-and-fiberglass passenger vessel that docked in Santa Barbara Harbor. During a Labor Day weekend dive trip in 2019, the boat carried 33 passengers and six crew members, including Boylan.

During the early morning hours of September 2, 2019, a fire broke out while the boat was anchored in Platt’s Harbor near Santa Cruz Island. The fire, which engulfed the boat and led to its sinking, resulted in the deaths of 34 people who had been sleeping below deck. Five crew members, including Boylan, were able to escape and survived.

“The defendant’s cowardice and repeated failures caused the horrific deaths of 34 people,” said United States Attorney Martin Estrada. “The victims’ families will be forever devastated by this needless tragedy. While today’s sentence cannot fully heal their wounds, we hope that our efforts to hold this defendant criminally accountable brings some measure of healing to the families.”

“The fate of the victims on the Conception might have been different were it not for the negligence of the defendant,” said Mehtab Syed, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “I want to commend the collaborative effort by investigators and prosecutors that led to today’s sentence and hope that it delivers a measure of justice to the victims’ families as they continue to heal from this tragedy.”

Boylan, as captain of the Conception, committed a series of failures – including abandoning his ship instead of rescuing passengers – that resulted in the disaster. Such conduct constituted misconduct, gross negligence, and inattention to his duties and led to the deaths of 34 victims, prosecutors argued.

As the ship’s captain, Boylan was responsible for the safety and security of the vessel, its passengers, and its crew. Federal prosecutors argued he failed in his responsibilities in several ways, including by:

• failing to have a night watch or roving patrol;
• failing to conduct sufficient fire drills and crew training;
• failing to provide firefighting instructions or directions to crew members after the fire started;
• failing to use firefighting equipment, including a fire ax and fire extinguisher that were next to him in the wheelhouse, to fight the fire or attempt to rescue trapped passengers;
• failing to perform any lifesaving or firefighting activities whatsoever at the time of the fire, even though he was uninjured;
• failing to use the boat’s public address system to warn passengers and crew members about the fire; and
• becoming the first crew member to abandon ship even though 33 passengers and one crew member were still alive and trapped below deck in the vessel’s bunkroom and in need of assistance to escape.

“There are no winners when lives are lost at sea, but there is justice in bringing those accountable to answer for their crimes. Today is an example of that.” said Coast Guard Investigative Service Director, Jeremy Gauthier. “This was in its truest form, a joint effort by our hard-charging CGIS Special Agents, the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.”

“The horrific tragedy on the Conception has forever changed many lives,” said Christopher Bombardiere, special agent in charge of ATF’s Los Angeles Field Division. “I want to express my deepest condolences to everyone who lost a loved one. No sentencing will ever be sufficient for the suffering you have endured, nor will it bring back your loved ones. I hope this prosecution and sentencing sends a message to other captains and this recklessness is never repeated. I want to thank our National Response Team, which investigated the cause and origin of the fire. Their dedication and skilled expertise provided much needed answers.”

The FBI, the Coast Guard Investigative Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this matter.

Assistant United States Attorneys Mark A. Williams, Matthew W. O’Brien and Juan M. Rodríguez of the Environmental Crimes and Consumer Protection Section, Brian R. Faerstein of the Public Corruption and Civil Rights Section, and Alexander P. Robbins of the Criminal Appeals Section prosecuted this case.

LOS ANGELES – Two Los Angeles men pleaded guilty today to federal criminal charges for defrauding banks and credit unions out of at least $2.7 million by depositing checks stolen from the mail into bank accounts belonging to accomplices they recruited through Instagram.

Carlos Corona, 36, of South Los Angeles, and Jose Luis Edeza Jr., 31, of Sunland, the two lead defendants in this criminal case, each pleaded guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft.

According to their plea agreements, from October 2020 to August 2023, Corona, Edeza and other co-conspirators engaged in an elaborate bank fraud scheme using third-party bank accounts and stolen checks. Some co-conspirators stole checks from the U.S. mail stream, including from post office mail collection boxes located outside post offices.

The conspirators took possession of the stolen checks. They, along with others, then solicited bank account holders through social media to provide their debit cards and bank account information, promising these account holders a cut of any fraudulent funds deposited into their accounts.

To circumvent the fraud protections of the banks and credit unions, Corona, Edeza and others specifically requested bank accounts that had been open for a certain amount of time so they could get access to the stolen funds more quickly.

Bank account holders responded to the social media advertisements and provided members of the conspiracy with the information requested on the ads, including bank account numbers, PIN numbers, debit cards and online banking log-in information.

Corona, Edeza and other co-conspirators exchanged the bank account holders’ information with each other, and then they deposited the stolen checks into these bank accounts. In most cases, the stolen checks were falsely endorsed in the original payee’s name. Sometimes, the checks were washed or altered to make the payee name correspond to the bank account into which the checks were being deposited.

Corona, Edeza and other co-conspirators then rapidly depleted the fraudulently deposited funds from the account holders’ accounts by making cash withdrawals, electronic transfers and/or debit card purchases. To conceal the fraud, members of the conspiracy instructed account holders – if the banks and credit unions contacted them about the fraudulent deposits – to claim that their accounts had been compromised.

During the scheme, Corona and Edeza intended to cause at least $5.3 million in losses to the banks and credit unions and caused actual losses to lenders of at least $2.7 million.

United States District Judge John F. Walter scheduled July 8 sentencing hearings for Corona and Edeza, at which time each defendant will face a statutory maximum sentence of 30 years in federal prison for the bank fraud conspiracy count and a mandatory two-year consecutive prison sentence for the aggravated identity theft count.

The United States Postal Inspection Service and IRS Criminal Investigation are investigating this matter. The Los Angeles Police Department provided assistance.

Assistant United States Attorneys Sarah E. Spielberger and Alexandra Michael, both of the General Crimes Section, are prosecuting this case.

LOS ANGELES – An indictment was unsealed today charging two California men for allegedly conspiring to defraud investors in a multi-year scheme involving the acquisition and sale of Airborne Wireless Network (stock ticker: ABWN) securities.

Kalistratos “Kelly” Kabilafkas, 48, of Moorpark, and Jack Edward Daniels, 74, of Agoura Hills, are charged with one count of conspiracy and one count of securities fraud.

Kabilafkas’ arraignment is scheduled for this afternoon in United States District Court in downtown Los Angeles. Daniels’ arraignment is scheduled for May 3 in U.S. District Court in downtown Los Angeles.

According to the indictment, Kabilafkas and Daniels conspired to secretly acquire the freely tradeable shares of a publicly traded shell company that they subsequently rebranded as Airborne. To acquire the company, Kabilafkas allegedly misappropriated a $474,500 sham charitable donation and used the funds to secretly buy the shell company’s stock. Following the acquisition, together with Kabilafkas, Daniels—Airborne’s president and sole director – allegedly filed false reports with the Securities and Exchange Commission to conceal from investors that Kabilafkas secretly held all of Airborne’s stock.

Without disclosing Kabilafkas’s acquisition of Airborne’s shares, Kabilafkas and Daniels allegedly used investors’ funds to orchestrate a multimillion-dollar advertising campaign designed to inflate Airborne’s stock price. During the advertising campaign, Airborne’s share price increased significantly for short periods of time, and Kabilafkas allegedly capitalized on the stock price spikes to sell millions of shares of Airborne stock and reap millions of dollars in ill-gotten gains.

An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

If convicted, Kabilafkas and Daniels each face a maximum penalty of five years in prison for conspiracy and 20 years in prison for securities fraud. 

The United States Postal Inspection Service, the FBI, and IRS Criminal Investigation are investigating this matter.

Assistant United States Attorney James C. Hughes of the Major Frauds Section and Trial Attorneys Theodore M. Kneller and Matt Kahn of the Justice Department’s Criminal Division’s Fraud Section are prosecuting this case.

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov. To learn more about victims’ rights, please visit www.justice.gov/criminal/criminal-vns/victim-rights-derechos-de-las-v-ctimas.

An indictment was unsealed today in the Central District of California charging two California men with conspiring to defraud investors in a multi-year scheme involving the acquisition and sale of Airborne Wireless Network securities (stock ticker ABWN).

According to court documents, Kalistratos “Kelly” Kabilafkas, 48, of Moorpark, and Jack E. Daniels, 74, of Agoura Hills, allegedly conspired to secretly acquire the freely tradeable shares of a publicly traded shell company that they subsequently rebranded as Airborne. To acquire the company, Kabilafkas allegedly misappropriated a $474,500 sham charitable donation and used the funds to secretly buy the shell company’s stock. Following the acquisition, together with Kabilafkas, Daniels—Airborne’s president and sole director—allegedly filed false reports with the Securities and Exchange Commission to conceal from investors that Kabilafkas secretly held all of Airborne’s stock. 

Without disclosing Kabilafkas’s acquisition of Airborne’s shares, Kabilafkas and Daniels allegedly used investors’ funds to orchestrate a multimillion-dollar advertising campaign designed to inflate Airborne’s stock price. During the advertising campaign, Airborne’s share price increased significantly for short periods of time, and Kabilafkas allegedly capitalized on the stock price spikes to sell millions of shares of Airborne stock and reap millions of dollars in ill-gotten gains. 

Kabilafkas and Daniels are charged with one count of conspiracy to commit securities fraud and one count of securities fraud. If convicted, Kabilafkas and Daniels each face a maximum penalty of five years in prison for conspiracy and 20 years in prison for securities fraud.  

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Martin Estrada for the Central District of California; Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group; Acting Assistant Director in Charge Mehtab Syed of the FBI Los Angeles Field Office; and Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.

USPIS, the FBI, and IRS-CI are investigating the case.

Trial Attorneys Theodore M. Kneller and Matt Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney James Hughes for the Central District of California are prosecuting the case.

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov. To learn more about victims’ rights, please visit www.justice.gov/criminal/criminal-vns/victim-rights-derechos-de-las-v-ctimas.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

LOS ANGELES – A member of the Hoover Criminals Gang was sentenced today to 144 months in federal prison for leading a drug trafficking enterprise that distributed narcotics, including crack cocaine and methamphetamine, which were sold from his storefront in South Los Angeles.

Andrew Tate, 56, a.k.a. “Batman,” of South Los Angeles, was sentenced by United States District Judge Stanley Blumenfeld Jr. Tate pleaded guilty in August 2022 to one count of conspiracy to distribute controlled substances. He has been in federal custody since his arrest in November 2020.

Tate is the lead defendant in an indictment targeting the gang's members and associates as part of an investigation dubbed “Operation Hoover Dam.” He also is the final defendant to be sentenced in this case. In total, federal prosecutors secured 10 convictions in this matter.

Tate owned a business named TNN Market and he sold methamphetamine, crack cocaine and powder cocaine from it. Tate and co-defendant Bobby Lorenzo Reed, 59, a.k.a. “Zo” and “Z,” who owned the South Los Angeles-based store H&E Smoke and Snack Shop, referred customers to one another, supplied one another, and directed their employees to engage in drug sales and referrals in dozens of narcotics transactions from June 2017 to May 2018. Reed is serving a 10-year prison sentence after pleading guilty in June 2022 to federal narcotics charges in this case.

“Tate participated in an extensive and long-running drug conspiracy to sell drugs, including methamphetamine and crack cocaine, in South Los Angeles,” prosecutors argued in a sentencing memorandum. “Tate’s role in the drug conspiracy was significant; he was the head of the entire drug trafficking enterprise pumping drugs into a vulnerable area of Los Angeles.”

The FBI, the Los Angeles Police Department and the California Department of Corrections and Rehabilitation investigated this matter.

Assistant United States Attorneys Jenna G. Williams of the Corporate and Securities Fraud Strike Force and Jason C. Pang of the General Crimes Section prosecuted this case.

LOS ANGELES – A federal grand jury has indicted an early bitcoin investor and promoter, who obtained the moniker “Bitcoin Jesus,” on fraud and criminal tax charges, the Justice Department announced today.

Roger Keith Ver, 45, a former California resident whose most recent residence was in Tokyo, Japan, was arrested this weekend in Spain based on the U.S. criminal charges. The United States will seek Ver’s extradition to stand trial in the United States.

Ver is charged with three counts of mail fraud, two counts of tax evasion, and three counts of subscription to a false tax return.

According to the eight-count indictment returned on February 15 and unsealed Monday, Ver, formerly of Santa Clara, California, owned MemoryDealers.com Inc. and Agilestar.com Inc., two companies that sold computer and networking equipment. Starting in 2011, Ver allegedly began acquiring bitcoins for himself and his companies. He also allegedly avidly promoted bitcoins, even obtaining the moniker “Bitcoin Jesus.”

On February 4, 2014, Ver allegedly obtained citizenship in St. Kitts and Nevis and shortly thereafter renounced his U.S. citizenship in a process known as expatriation. As a result of his expatriation, Ver allegedly was required under U.S. law to file tax returns that reported capital gains from the constructive sale of his world-wide assets, including the bitcoins, and to report the fair market value of his assets. He was also allegedly required to pay a tax – referred to as an “exit tax” – on those capital gains. By February 4, 2014, Ver and his companies allegedly owned approximately 131,000 bitcoins that traded on several large exchanges for around $871 each. MemoryDealers and Agilestar allegedly held approximately 73,000 of those bitcoins.

Ver allegedly hired a law firm to assist him with his expatriation and to prepare his expatriation-related tax returns. Ver also allegedly hired an appraiser to value his two companies. Ver allegedly provided or caused to be provided false or misleading information to the law firm and appraiser that concealed the true number of bitcoins he and his companies owned. As a result, the law firm allegedly prepared and filed false tax returns that substantially undervalued the two companies and their 73,000 bitcoins and did not report that Ver owned any bitcoins personally.

The indictment further alleges that by June 2017, Ver’s two companies continued to own approximately 70,000 bitcoins. Around that time, Ver allegedly took possession of those bitcoins and in November 2017 sold tens of thousands of them on cryptocurrency exchanges for approximately $240 million in cash. Even though Ver was not then a U.S. citizen, he was still legally required to report to the IRS and pay tax on certain distributions such as dividends from MemoryDealers and Agilestar, which were U.S. corporations. Ver allegedly concealed from his accountant that he had received and sold MemoryDealers’ and Agilestar’s bitcoins that year. As a result, Ver’s 2017 individual income tax return did not report any gain or pay any tax related to the distribution of MemoryDealers’ and Agilestar’s bitcoins to him.

In total, Ver is alleged to have caused a loss to the IRS of at least $48 million.

An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

If convicted of all charges, Ver would face a statutory maximum sentence of 20 years in federal prison for each mail fraud count, up to five years in federal prison for each tax evasion count, and up to three years in federal prison for each count of subscribing to a false tax return.

IRS Criminal Investigation is investigating this matter.

Assistant United States Attorney James C. Hughes of the Major Frauds Section and Assistant Chief Matthew J. Kluge and Trial Attorney Peter J. Anthony of the Justice Department’s Tax Division are prosecuting this case.

LOS ANGELES – A San Gabriel Valley man is scheduled to appear in court this afternoon on federal charges stemming from his alleged attempt to obtain additional funds from two elderly victims who had already paid thousands as part of an online phishing scheme that locked up their home computer.

Tai Su, 48, of West Covina, is scheduled to make his initial appearance this afternoon in United States District Court in downtown Los Angeles. Su was arrested Friday in a sting orchestrated by Homeland Security Investigations (HSI), and federal prosecutors Sunday filed a criminal complaint that alleges one count of conspiracy to commit wire fraud.

Su was arrested at the victims’ Encino residence when he showed up to retrieve $35,000 from the two elderly victims who had already paid the fraudsters $25,000 in cash. According to the affidavit in support of the criminal complaint, Su is part of a scheme that included a computer virus, callers pretending to help the victims, and two other people who masqueraded as federal agents.

The cyberattack began on April 23 when the victims opened an email and clicked on a link launching malware that seized their computer and displayed a phone number that was purportedly “Microsoft Support.” The victims called the number and spoke to a person who advised they had been “hacked,” and the hackers now had their bank account information at City National Bank.

The victims were then connected to another person pretending to be a “Fraud and Risk Investigator” with City National Bank, who instructed the victims to withdraw $25,000 in cash and give the money to purported “federal agents” who would come to the victims’ house. The victims withdrew the cash and, later on April 23, two men pretending to be federal agents – one of whom displayed a fake badge – came to the victims’ residence and collected the money.

Over the next two days, the scammers continued to seek additional funds from the victims, even directing them to make a $10,000 withdrawal at a particular City National Bank branch.

HSI agents on April 25 learned about the ongoing scam and planned a sting operation.

On April 26, during a series of phone calls with participants in the scheme, the victims agreed to make another $35,000 cash payment. After rebuffing demands to deposit the funds into a virtual wallet at a remote location, the victims arranged for another pick-up by a “federal officer” at their residence.

At the agreed-upon time, Su drove to the victims’ home. He identified himself to an 86-year-old victim, gave a passcode, and then said he was from Coinbase, a popular cryptocurrency platform. HSI agents then arrested Su, who was found to be carrying thousands of dollars in cash in large denominations, according to the affidavit.

A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The charge of conspiracy to commit wire fraud carries a statutory maximum sentence of 20 years in federal prison.

The investigation was conducted by the Homeland Security Investigations-led El Camino Real Financial Crimes Task Force, a multi-agency task force that includes federal and state investigators who are focused on financial crimes in Southern California.

Assistant United States Attorneys Kedar S. Bhatia and Joseph De Leon of the General Crimes Section are prosecuting this case.

This case is the product of an investigation by the Vulnerable Communities Task Force, which is focused on investigating and prosecuting individuals and entities that prey on communities that typically are less likely to report crimes to law enforcement and historically have had less legal recourse to address the offenders targeting them. These groups may include immigrants and migrant workers defrauded in immigration schemes, indigent individuals reliant on public benefits, the elderly, and those who have been reluctant to seek assistance from government authorities.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. English, Spanish and other languages are available.

SANTA ANA, California – The owner and operator of addiction treatment facilities in Orange County is expected to be arraigned today on a federal grand jury indictment alleging he paid nearly $175,000 in illegal kickbacks to so-called “body brokers” in exchange for finding him new patients.

Scott Raffa, 57, of Newport Beach, was arrested Saturday at Los Angeles International Airport. He is scheduled for arraignment this afternoon in United States District Court in Santa Ana. Raffa is charged with 12 counts of illegal remunerations for referrals to clinical treatment facilities.

According to the indictment that a grand jury returned on April 10, Raffa operated Orange County-based sober living homes, including Sober Partners Waterfront Recovery Center, Sober Partners Reef House, and Sober Partners Beach House. These facilities treated patient populations that received health care benefits through health insurers.

Raffa allegedly paid thousands of dollars per patient in illegal kickbacks to individuals who referred patients to his facilities, a practice known as “body brokering.” The body brokers in this case each controlled their own business entities and Raffa allegedly paid them kickbacks by depositing checks or wiring money to bank accounts that the brokers controlled. The kickbacks were intended as compensation for the brokers referring patients and to induce the brokers to continue to refer patients to Raffa’s facilities, the indictment alleges.

Raffa allegedly entered into sham contracts with certain body brokers that were designed to conceal the nature of the illicit payments, including by purportedly prohibiting payments from Raffa’s sober living homes based on “volume or value” of the body brokers’ patient referrals.

The brokers and Raffa allegedly met or would communicate via encrypted messaging services to calculate and negotiate the kickback amounts he owed the brokers for patient referrals. The kickback amounts allegedly were based on the insurance revenues that Raffa expected to receive for the respective patients, factoring in each patient’s insurance provider and the duration of the patient’s treatment at one of his sober living homes. Raffa refused to pay the kickbacks unless patients received at least 21 days’ treatment at one of his facilities, according to the indictment.

From April 2020 to October 2021, Raffa paid a total of $174,600 in illegal kickbacks to body brokers, the indictment alleges.

An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

If convicted of all charges, Raffa would face a statutory maximum sentence of 10 years in federal prison for each count.

The FBI is investigating this matter.

Assistant United States Attorneys Benjamin R. Barron and Nandor Kiss of the Santa Ana Branch Office are prosecuting this case.

SANTA ANA, California – Two men, one from Orange County and the other from Texas, were sentenced today to lengthy prison terms for using the darknet and encrypted messaging applications to sell more than 120,000 fentanyl-laced pills and other drugs to more than 1,000 customers across the country, causing several fatal overdoses in the process.

Michael Ta, 25, of Westminster, was sentenced to 260 months (21 years and eight months) in federal prison by United States District Judge David O. Carter. At a separate hearing today, Judge Carter sentenced Rajiv Srinivasan, 37, of Houston, to 235 months (19 years and seven months) in federal prison.

Ta pleaded guilty in August 2023 to one count of conspiracy to distribute controlled substances. Srinivasan pleaded guilty in June 2023 to the same charge and to one count of distributing fentanyl resulting in death.

Srinivasan operated the account “redlightlabs” on multiple darknet marketplaces, including the site “Dark0de.” Srinivasan and Ta used the redlightlabs account to advertise and sell counterfeit M30 oxycodone pills containing fentanyl and other illicit drugs.

Srinivasan also used the encrypted messaging application Wickr to communicate with and sell drugs to customers. Srinivasan received virtual currency as payment for the drugs and then routed that virtual currency through cryptocurrency exchanges.

Ta communicated with Srinivasan about drug orders, obtained fentanyl-laced pills and methamphetamine from sources of supply, stored those drugs in his residence, and mailed out packages with drugs to customers who had ordered them from Srinivasan on the “redlightlabs” account.

From at least February 2022 to November 2022, Srinivasan and Ta engaged in at least 3,800 drug deals to approximately 1,400 customers in all 50 U.S. states, totaling more than 123,000 fentanyl-laced M30 pills, more than 9 kilograms (20 pounds) of methamphetamine, nearly 300 grams of “China white” (fentanyl powder) and black tar heroin, and 27 grams of cocaine.

Ta and Srinivasan admitted in their plea agreements to causing the fentanyl overdose deaths of three victims. Both defendants further admitted to distributing fentanyl-laced pills to two additional victims, both of whom suffered fatal drug overdoses shortly after they received the pills from Ta and Srinivasan.

Prosecutors wrote in a sentencing memorandum, “the five victims of defendants’ crimes ranged in age from 19 to 51. They lived across the country, from California to Florida, Colorado to Arkansas. Each of the five victims leaves behind a family that has been forever and fundamentally changed by defendants’ actions. [Ta and Srinivasan] also victimized countless others as part of an epidemic of addiction and despair plaguing our district and our country.”

In a related case, Omar Navia, 39, of South Los Angeles, pleaded guilty today to one count of conspiracy to distribute controlled substances. Navia admitted in his plea agreement that, from at least August 2021 to December 2022, he supplied fentanyl-laced pills and methamphetamine to Srinivasan and Ta’s customers. Navia faces a 10-year mandatory minimum prison sentence and a statutory maximum sentence of life imprisonment at his August 19 sentencing hearing.

Adan Ruiz, 27, of Garden Grove, a co-defendant in the Navia criminal case and an alleged co-conspirator with Srinivasan and Ta, has pleaded not guilty to one count of conspiracy to distribute controlled substances and one count of distribution of fentanyl. His trial is scheduled for September 24. Both Navia and Ruiz are in federal custody.

An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The FBI investigated this matter. The United States Postal Inspection Service, and the United States Attorney’s Office for the Southern District of Texas provided substantial assistance.

The investigation in this matter was conducted under the auspices of the FBI-led Joint Criminal Opioid Darknet Enforcement Team (JCODE), which targets darknet vendors by using sophisticated, high-tech techniques to identify drug traffickers who wrongly believe the dark web allows them to engage in criminal conduct with anonymity. Since its inception in 2018, JCODE investigations have resulted in the arrest of more than 300 darknet drug traffickers, as well as the seizure of more than $42 million in drug-tainted proceeds, over 800 kilograms of narcotics, and approximately 145 firearms.

The Northern Colorado Drug Task Force (NCDTF) also helped investigate this matter. NCDTF works to protect the community by identifying, investigating, and impacting drug-related crime in Larimer County. Participating agencies who make this effort possible include Fort Collins Police Services, Larimer County Sheriff's Office, Loveland Police Department, Windsor Police Department, the Eighth Judicial District Attorney’s Office, and Colorado Adult Parole. The Drug Enforcement Administration’s Fayetteville Resident Agency also assisted during the investigation. 

Assistant United States Attorney Gregg E. Marmaro of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.

LOS ANGELES – The United States and the State of California have reached a $7,084,000 civil settlement with Monrovia-based ReNew Health Group LLC, ReNew Health Consulting Services LLC, and two corporate executives for knowingly submitting false Medicare Part A claims for nursing home residents.

During the COVID-19 pandemic, to conserve hospital beds, the Centers for Medicare and Medicaid Services waived the requirement that a person must have had a hospital stay of at least three days (signaling an acute illness or injury) before reimbursing for skilled care in a nursing home. 

The United States and the State of California alleged that the defendants knowingly misused this waiver by routinely submitting claims for nursing home residents when they did not have COVID-19 or any other acute illness or injury, but merely had been near other people who had COVID-19.  Under the settlement, the defendants will pay $6,841,727 to the United States and $242,273 to the State of California, plus interest.

“False claims are anathema to the Medicare system, especially during a public health crisis,” said United States Attorney Martin Estrada of the Central District of California. “This settlement agreement highlights my office’s determination to ensure our nation’s health care programs help those who actually need them.”

“The Department of Justice is committed to protecting the integrity of taxpayer-funded programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “We will hold accountable those who sought to defraud such programs during the COVID-19 pandemic, including those who knowingly misused emergency waivers for personal gain.”

This investigation was prompted by a lawsuit filed under the whistleblower provisions of the False Claims Act, which permit private parties to sue on behalf of the government to redress false claims for government funds and to receive a share of any recovery.  The settlement agreement in this case provides for the whistleblower, Bay Area Whistleblower Partners, to receive $1,204,280, plus interest, as its share of the settlement.  The case is captioned United States and State of California ex rel. Bay Area Whistleblower Partners v. ReNew Health Group LLC et al., No. 2:20-cv-09472 (C.D. Cal.).

Assistant United States Attorney Karen Y. Paik of the Civil Division’s Civil Fraud Section and Senior Trial Counsel Albert P. Mayer of the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section are handling this matter with assistance from the Department of Health and Human Services’ Office of Inspector General and the California Department of Justice’s Division of Medi-Cal Fraud and Elder Abuse.

The claims settled by the United States and the State of California are allegations only, and there was no determination of liability.

LOS ANGELES – A San Gabriel Valley woman pleaded guilty today to defrauding the United States Postal Service (USPS) out of more than $150 million by using counterfeit postage to ship tens of millions of parcels.

Lijuan “Angela” Chen, 51, of Walnut, pleaded guilty to one count of conspiracy to defraud the United States and one count of use of counterfeit postage. Chen has been in federal custody since her arrest in May 2023.

“This defendant participated in a fraud scheme that caused massive losses to our nation’s postal service,” said United States Attorney Martin Estrada. “My office will continue to focus on holding fraudsters accountable and bringing justice to victims everywhere.”

According to her plea agreement, from at least November 2019 to May 2023, Chen and her co-defendant, Chuanhua “Hugh” Hu, 51, owned and operated a package shipping business located in the City of Industry. This company provided shipping services, including the shipping of packages via U.S. Mail, for China-based logistics businesses.

To avoid the cost of postage, Hu began creating false and counterfeit postage to ship packages by printing duplicate and counterfeit Netstamps – stamps that may be purchased online from third-party vendors and printed onto adhesive paper.

In November 2019, knowing that law enforcement was investigating his use of counterfeit postage, Hu fled the United States and moved to China. After fleeing to China, Hu developed ways to make counterfeit postage and avoid detection, such as a computer program for fabricating counterfeit postage shipping labels. Chen remained in the United States and managed the warehouses that she and Hu used to ship mail bearing counterfeit postage.

Starting in 2020, Chen and Hu began affixing counterfeit postage to mail they presented to USPS for delivery. Chen and Hu received parcels from the China-based vendors and others, applied shipping labels showing postage purportedly paid and then arranged for the parcels to be transferred to USPS facilities to be shipped across the nation. The shipping labels were fraudulent and frequently included, among other red flags, “intelligent barcode data” recycled from previously mailed packages, according to court documents.  Intelligent barcode data is used in some postage shipping labels to evidence the payment of required postage for the shipped item.  

For example, on October 25, 2022, Chen and Hu caused to be transported to USPS a delivery of approximately 4,779 packages to be shipped via U.S. Mail. This delivery included multiple packages bearing counterfeit USPS Priority Mail postage meter stamps.

From January 2020 to May 2023, Chen and Hu knowingly mailed and caused to be mailed more than 34 million parcels containing counterfeit postage shipping labels, which caused more than $150 million in losses to USPS.

As part of her plea agreement, Chen has agreed to forfeit funds that law enforcement seized from her bank accounts, insurance policies, and real estate in Walnut, Chino, Chino Hills, South El Monte, Diamond Bar, and West Covina.

“The Postal Service and the Postal Inspection Service will continue to implement expanded measures to preserve the level of security Postal Service customers expect and deserve,” said Inspector in Charge Carroll Harris, Los Angeles Division of the Postal Inspection Service. “Engaging in counterfeit postage fraud causes monetary losses to customers and the Postal Service alike. Fraudsters beware, the Postal Inspection Service will continue to exhaust all its efforts to disrupt your scheme, find you, and bring you to justice.”

“Ms. Chen has admitted today that she conspired with Mr. Hu to defraud the United States Government willfully and knowingly,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “IRS:CI will work tirelessly with our partners to protect taxpayer interests in the postal service and other government agencies.”

United States District Judge Josephine L. Staton scheduled an August 2 sentencing hearing, at which time Chen will face a statutory maximum sentence of five years in federal prison for each count.

Hu, who is believed to be a fugitive residing in China, is charged with one count of conspiracy to defraud the United States, three counts of passing and possessing counterfeit obligations of the United States, and one count of forging and counterfeiting postage stamps.

An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The United States Postal Inspection Service and IRS Criminal Investigation investigated this matter.

Assistant United States Attorneys James C. Hughes and Richard E. Robinson of the Major Frauds Section are prosecuting this case.

LOS ANGELES – A Ventura County man pleaded guilty today to 10 felonies for extorting a taco truck vendor, robbing two small businesses, and fraudulently using debit and credit cards from a victim he robbed at gunpoint during a crime spree late last year.

Oscar Aguirre Silva, 30, of Ventura, pleaded guilty to one count of interference with commerce by extortion (Hobbs Act), two counts of interference with commerce by robbery (Hobbs Act), three counts of bank fraud, two counts of attempted bank fraud, and two counts of aggravated identity theft.

Also pleading guilty today at a separate hearing was Edward Donaldo Ramirez Martinez, 28, of Ventura, Silva’s accomplice, who pleaded guilty to one count of aggravated identity theft and one count of being a felon in possession of ammunition.

According to court documents, on November 6, 2023, Silva threatened violence to extort a taco truck vendor in Oxnard.

On November 10, 2023, Silva robbed a woman at gunpoint and stole her iPhone, and her purse, which contained a credit card and a debit card in the victim’s name as well as a debit card in the name of another victim. Ramirez served as the getaway driver during this armed robbery. Both men then traveled to a Walmart store in Ventura, where they used the stolen cards to purchase $524 worth of merchandise. Later, Silva and another co-defendant, David Ray Reyes, 30, of Ventura, then used and attempted to use the stolen cards to purchase other items at an Oxnard smoke shop.

On November 25 and 26, 2023, Silva robbed two Oxnard businesses – a smoke shop and a grocery outlet. 

Finally, on December 2, 2023, Ramirez, while under the influence of methamphetamine, possessed an assault rifle that did not bear a serial number – commonly known as a “ghost gun.” The firearm carried four rounds of ammunition. Ramirez was not legally permitted to possess the ghost gun or the ammunition because of his February 2020 felony conviction in Ventura County Superior Court for carrying a loaded firearm.

United States District Judge Hernán D. Vera scheduled an August 8 sentencing hearing for Silva, at which time he will face a statutory maximum sentence of 30 years in federal prison for each bank fraud-related count, up to 20 years in federal prison for each Hobbs Act extortion and robbery count, and a mandatory two-year consecutive prison term for each aggravated identity theft count.

Judge Vera also scheduled an August 8 sentencing hearing for Ramirez, who will face a statutory maximum sentence of 12 years in federal prison, which includes a mandatory two-year prison sentence for the aggravated identity theft count.

Reyes pleaded guilty on March 6 to one count of attempted bank fraud, one count of bank fraud, and two counts of aggravated identity theft. Reyes will face up to 30 years in federal prison for each bank fraud count and a mandatory two-year consecutive prison sentence for each aggravated identity theft count at his May 29 sentencing hearing before Judge Vera.

All three defendants remain in federal custody.

The Ventura County Violent Crime Task Force, which includes the FBI, the Oxnard Police Department, the Ventura County Sheriff’s Office, and the Ventura Police Department, conducted this investigation.

Assistant United States Attorney Lyndsi C. Allsop of the Violent and Organized Crime Section is prosecuting this case.

LOS ANGELES – A federal grand jury today indicted a Burbank man who allegedly evaded the payment of nearly $5.8 million in federal taxes over several years by using a shill to illegally collect Medicare reimbursement payments made to his blood-testing company.

Armen Muradyan, 58, is charged via indictment with one count of tax evasion. He has been in federal custody since his April 9 arrest at Los Angeles International Airport on a criminal complaint in this matter. Muradyan, a dual citizen of the United States and Armenia, was arrested prior to boarding a one-way flight whose ultimate destination was Armenia.

Muradyan’s arraignment is scheduled for April 29 in United States District Court in downtown Los Angeles.

According to court documents, Muradyan owned and operated a Burbank-based blood testing laboratory called Genex Laboratories Inc. Medicare and bank records show that Medicare paid millions of dollars in reimbursements to Genex for blood testing. The reimbursements were wired to bank accounts in the name of an individual identified in court documents as “L.S.” – Muradyan’s long-time friend to whom Muradyan had offered to pay $2,000 per month to pretend to be Genex’s owner.

Muradyan allegedly told L.S. that he needed him to submit Medicare enrollment papers to Medicare on Genex’s behalf because Medicare had banned Muradyan from submitting claims.

L.S. and Muradyan allegedly opened bank accounts for Genex in L.S.’s name, but which Muradyan controlled. L.S. neither owned nor operated Genex and visited the company’s Burbank office to collect his $2,000 monthly payment and to sometimes sign documents at Muradyan’s direction.

For the tax years of 2015 through 2020, Muradyan allegedly instructed L.S. to report Genex’s financial activity on L.S.’s personal income tax returns using documents that L.S. provided to his own tax preparer. The documents purportedly showed that Genex had minimal net profit or was operating at a loss, meaning the company had little or no income tax liability.

For the same period, Muradyan allegedly submitted income tax returns that reported none of Genex’s financial activity as his own and that he averaged an income of $40,000 per year. In fact, Muradyan allegedly personally received and used millions of dollars in Medicare reimbursements to support his own expensive lifestyle.

For these tax years, Muradyan’s unreported income was approximately $16,231,046, resulting in a total federal income tax due and owing by him of approximately $5,771,567, according to court documents.

An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

IRS Criminal Investigation, the FBI, and the United States Department of Health and Human Services – Office of Inspector General are investigating this matter.

Assistant United States Attorney Mark Aveis of the Major Frauds Section and Trial Attorney Mahana K. Weidler of the Department of Justice’s Tax Division are prosecuting this case.

LOS ANGELES – A San Fernando Valley man associated with a racially motivated violent extremist group was sentenced today to 57 months in federal prison for being a convicted felon in possession of ammunition and possessing eight machine gun conversion devices that allow semi-automatic firearms to function as machine guns.

Ryan Scott Bradford, 35, of Reseda, was sentenced by United States District Judge Josephine L. Staton.

Bradford pleaded guilty on January 11 to one count of felon in possession of ammunition and one count of possession of machine guns.

During a search of Bradford’s residence on July 27, 2023, law enforcement officers with the FBI, the DEA and the LAPD recovered 116 rounds of various ammunition – which Bradford is prohibited from possessing due to a 2012 burglary conviction – as well as two machinegun conversion devices for a semiautomatic AR-15-type firearm, four “chip” style machinegun conversion devices for a Glock-type firearm, and two “switch” style machinegun conversion devices for a Glock-type firearm.

When authorities searched the residence, they also recovered two 3D printers, one of which was emblazoned with swastikas; body armor with SS bolts; and glass containers containing explosive components.

In sentencing papers filed in court, prosecutors argued that Bradford “has been involved in manufacturing guns for years,” and that the number of guns he “was manufacturing was not insubstantial and he was working to arm himself as well as others.”

“This violent extremist not only made numerous threats to kill Jews, but also was amassing weapons capable of carrying out acts of violence,” said United States Attorney Martin Estrada. “Hateful behavior of this sort has no place in our society, and we will continue to use all the tools available to protect the community from violence driven by racially motivated ideology.”

“Mr. Bradford, a felon, was calling for the genocide of Jews and offering to manufacture 3D weapons while illegally possessing firearms and ammunition,” said Mehtab Syed, the Acting Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The Joint Terrorism Task Force will investigate violent threats and hold accountable individuals who engage in criminal activity.”

According to an affidavit in support of a criminal complaint filed last year, Bradford was affiliated with the San Fernando Valley Peckerwoods, a racially motivated violent extremist group. According to the affidavit, Bradford – using online usernames referencing the Peckerwoods – used messaging applications to post racist remarks against Jewish people, including calling for mass murder and genocide of Jews. Bradford also posted links and instruction manuals on Telegram concerning hand grenades, biological warfare, and the “Aryan Revolution,” at times offering to make firearms and firearm parts for others using 3-D printers.

The FBI’s Joint Terrorism Task Force, the Drug Enforcement Administration, and the Los Angeles Police Department investigated this matter.

Assistant United States Attorney Reema El-Amamy of the Terrorism and Export Crimes Section is prosecuting this case. Assistant United States Attorney Alex Su of the Asset Forfeiture and Recovery Section is handling the forfeiture or abandonment of the firearms, conversion devices, 3D printers, explosives components and tactical gear seized from Bradford.

LOS ANGELES – A former federal employee pleaded guilty today to a federal kidnapping charge for plotting to abduct and kill his estranged wife, who was strangled to death in 2016.

Eddy Reyes, 38, of Covina, pleaded guilty to one count of kidnapping resulting in death.

Reyes was a civilian employee of U.S. Customs and Border Protection at the time of his wife’s death and when he was arrested in this case in April 2021. He has been in federal custody since his arrest.

“We sincerely hope this successful prosecution brings some closure to the family of the victim, who was murdered in cold blood by her husband,” said United States Attorney Martin Estrada. “Those who commit horrific acts of violence of this sort will feel the full weight of the law.”

“Mr. Reyes meticulously planned the brutal murder of Claudia Sanchez Reyes and then covered his tracks to evade the scrutiny of law enforcement, a community to which he once belonged,” said Mehtab Syed, the Acting Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The hard work by investigators and prosecutors in this case leading to today’s guilty plea will hopefully bring a measure of justice to Claudia’s family in El Salvador.”

According to his plea agreement, Reyes met the victim, Claudia Sanchez Reyes, in El Salvador in 2014. Reyes eventually married the victim and brought her and their son to the United States. Court documents previously filed in this case allege a history of domestic abuse by Reyes against his wife, who obtained temporary restraining orders against him in 2014 and 2016.

By 2016, Reyes suspected his wife was having an affair and he decided to kill her. Reyes then contacted his estranged half-brother – a one-time gang member and gravedigger in El Salvador identified in court documents as “P.O.,” who is now deceased – about killing the victim.

On May 6, 2016, Reyes telephoned his wife at her job and told her that he wanted to take her to dinner that night and told her not to take an Uber home, which was her usual practice. At approximately 8 p.m. that night, Reyes drove a rented Hyundai Santa Fe and picked her up from work, after previously lying to her that the vehicle was a gift.

Instead of taking his wife out to dinner, Reyes drove to his mother’s house in Orange, pulled into the garage and closed the door. Once the door was closed, P.O. jumped from the SUV’s cargo area into the back seat and grabbed the victim, who was in the front passenger seat. P.O. punched Claudia Reyes in the face, cutting her lip, then took a seat belt and strangled her. She was 21 years old. Reyes helped P.O. push the victim’s dead body from the front passenger seat into the SUV’s cargo area.

Reyes further admitted in court that, the following day, he drove to the Santa Ana apartment he shared with his wife, turned on her telephone he had turned off the night before, and, posing as his wife, used her phone to send a text message to one of her co-workers saying she would not be in to work that day. P.O., also using the victim’s phone, texted a paralegal working for the victim’s divorce lawyer that stated she no longer need the lawyer’s services.

P.O. also used Claudia Reyes’ phone to text her mother and, pretending to be the victim, he wrote that she had met another man, was leaving Reyes and their son, that she was about to disconnect the phone, and wishing her a happy Mother’s Day.

On May 19, 2016, Reyes drove to a parking lot at Los Angeles International Airport and threw in the trash a backpack containing a blanket and rags that P.O. used to wipe down the seatbelt and interior of the SUV where Claudia Reyes was killed.

After Reyes filed a missing person report four days later, police conducted an investigation that revealed co-workers heard Claudia Reyes fighting with her husband on May 6 soon before he picked her up in the rented SUV, according to the affidavit in support of a criminal complaint, which notes detectives later found a drop of Claudia Reyes’ blood in that vehicle and a cadaver dog indicated that a dead body had been in the SUV.

“In committing these acts, [Reyes] admits that he lured Claudia S. into the Hyundai Santa Fe on the night of May 6, 2016, with the promise of taking her to dinner, when in fact the plan was to kill her,” Reyes admitted in this plea agreement.

United States District Judge Josephine L. Staton scheduled an August 2 sentencing hearing, at which time Reyes will face a statutory maximum sentence of life imprisonment. In exchange for his confession, federal prosecutors have agreed to ask Judge Staton to sentence Reyes to no more than 30 years in federal prison.

The case was investigated by the FBI, the Santa Ana Police Department, and the Orange County Violent Gang Task Force, which is comprised of several federal, state, and local agencies. Assistance was provided by Customs and Border Protection’s Office of Professional Responsibility, the Irvine Police Department, and the Transnational Anti-gang Unit of El Salvador.

Assistant United States Attorney Gregory W. Staples of the Santa Ana Branch Office is prosecuting this case.

SANTA ANA, California – An Orange County man who firebombed a Planned Parenthood clinic in Costa Mesa and plotted other attacks – including an attack on the Orange County power grid in furtherance of a race war, an attack at Dodger Stadium during an LGBTQ+ pride night celebration, and the home invasions of Jewish homes in Los Angeles – was sentenced today to 108 months in federal prison.

Chance Brannon, 24, of San Juan Capistrano, who was an active-duty member of the United States Marine Corps stationed at Camp Pendleton at the time of the firebombing, was sentenced by United States District Judge Cormac J. Carney, who also ordered Brannon to pay $1,000 in restitution. Brannon has been in federal custody since his arrest in June 2023.

Judge Carney said Brannon “engaged in cruel and indefensible domestic terrorism.”

Brannon pleaded guilty in November 2023 to one count of conspiracy, one count of malicious destruction of property by fire and explosives, one count of possession of an unregistered destructive device, and one count of intentionally damaging a reproductive health services facility in violation of the Freedom of Access to Clinic Entrances Act.

“This defendant’s deep-seated hatred led him to commit a firebombing and plan many other acts of violence, including starting a race war,” said United States Attorney Martin Estrada. “This prosecution sends a message that we will act decisively to protect all members of our community from acts of violence, and that we will remain united against hate.”

“The Justice Department does not tolerate the use of violence to intimidate and endanger,” said Deputy Attorney General Lisa Monaco. “This prosecution and today’s sentence hold the defendant accountable for placing lives at risk by launching a brazen attack with an explosive device against a health care facility.”

“The defendant violently attacked a reproductive healthcare facility and plotted multiple, potentially deadly assaults to advance his hate-fueled agenda,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendant’s assault on the Costa Mesa Clinic was designed to terrorize patients seeking reproductive healthcare and the people who provide it. Such violence has no place in the national discourse on reproductive health. The Justice Department will continue to investigate and prosecute those who seek to use threats of violence, force, and destruction of property to target vulnerable communities.”

“Mr. Brannon’s deep-rooted hatred and extremist views inspired him to target individuals or groups who did not conform to his neo-Nazi worldview and, in one case, led him to carry out a violent attack which could have killed innocent people,” said Mehtab Syed, the Acting Assistant Director in Charge of the FBI’s Los Angeles Field Office. “I’m proud of the hard work and collaboration by the JTTF whose members built this case and apprehended Brannon before additional acts of domestic terrorism could be carried out, as well as the hard work by prosecutors and agents leading to today’s sentencing.”

“This case represents the successful interagency coordination between NCIS, Costa Mesa first responders, and the FBI’s Joint Terrorism Task Force,” said Assistant Special Agent in Charge Michael Payne of the NCIS Marine West Field Office. “Such acts of terror in an attempt to preventing access to reproductive health services is intolerable.”

In February and March of 2022, Brannon and his co-defendants – Tibet Ergul, 22, of Irvine, and Xavier Batten, 21, of Brooksville, Florida – conspired to use a Molotov cocktail to destroy a commercial property. Brannon considered various targets, including the Anti-Defamation League office in San Diego, but ultimately chose to target a Planned Parenthood clinic in Costa Mesa to scare pregnant women, deter doctors and staff from providing abortion services, and encourage similar violent acts. 

During the early morning hours of March 13, 2022, Brannon and Ergul ignited and threw the Molotov cocktail at the clinic, striking the clinic entrance and starting a fire before fleeing. Brannon and Ergul returned hours later to surveil their work. In its sentencing memorandum, the government argued that “rather than allow the judicial and legislative systems to unfold, [Brannon] took matters into his own hands, weaponizing fear and intimidation to achieve his political ends.”

In May 2022, Brannon counseled Batten on how to “get away with” committing a similar attack to the Costa Mesa one. In June 2022, following the U.S. Supreme Court’s decision overturning Roe v. Wade, its 1973 ruling that recognized a constitutional right to abortion, Brannon and Ergul planned to use a second Molotov cocktail to damage or destroy a second Planned Parenthood clinic. Ultimately, Brannon and Ergul abandoned their plan because they saw law enforcement near the clinic they planned to target.

Beginning sometime in 2022 and continuing through the time of their arrests, Ergul and Brannon discussed starting a race war by attacking an electrical substation with the goal of disrupting the functioning of the power grid in Orange County. On a thumb drive disguised as a military-style necklace bearing the motto for the Marine Corps, Brannon kept a file containing an operation plan and a gear list for targeting a Southern California Edison substation. Brannon possessed several items on the gear list, including a rifle with “Total [N-word] Death” written in Cyrillic and a recording of the 2019 mosque shooting in Christchurch, New Zealand, where a white supremacist murdered 51 people and injured 40 others.

According to the government’s sentencing memorandum, Brannon used racial slurs for various minority groups, “made hateful comments towards all non-white individuals,” and discussed “cleans[ing]” the United States of particular ethnic groups. In the weeks leading up to his arrest, Brannon texted a friend, “Can we just be done with elections and have the race war already” and complained that “[p]eople will never do anything if everyone keeps waiting for [a race war] to start on its own.”

Throughout the early summer of 2023, Brannon and Ergul also discussed and researched how to attack Dodger Stadium on a night celebrating LGBTQ pride, including by using a remote-detonated device. As part of those conversations, Brannon shared a “WW2 sabotage manual” with Ergul, discussed doing “dry runs” to “case” the stadium, and conducted research on Ted Kaczynski, also known as the Unabomber.  Brannon and Ergul were arrested two days before the event, according to court documents.

Brannon was motivated by an extremist neo-nazi ideology, prosecutors wrote in their sentencing memorandum. Brannon frequently greeted his friends using “88,” which is coded language for “Heil Hitler,” and he called Adolf Hitler “a great man who loved his people and tried to save us all from the jews,” According to the sentencing memorandum. Brannon possessed antisemitic writings, drawings and literature in his bedroom at the time of his arrest and made comments to his fellow Marines including “All jews deserve to die.”

Just days before his arrest, Brannon began planning with a friend to rob Jewish residents of the Hollywood Hills. As prosecutors argued in court documents, Brannon’s “use of racial and homophobic slurs, casual expressions of misogyny, and persistent expressions of violent intent went far beyond empty words; rather, defendant intended – and in many instances planned – to take overt action that would at the very least scare and intimidate women, racial minorities, and the Jewish and LGBTQ+ communities, and would at worst harm or even kill real victims.”

At the time of his arrest, Brannon possessed a short-barreled rifle and two silencers, which he had not registered with the National Firearms Registration and Transfer Record. According to the government’s sentencing memorandum, in 2022, Brannon placed calls to two foreign adversaries, hoping to offer himself up as a “mole” by providing U.S. intelligence.

Batten and Ergul pleaded guilty earlier this year to criminal charges in this case and have sentencing hearings scheduled, respectively, for May 13 and May 30.

The FBI and the Naval Criminal Investigative Service investigated this matter, with substantial assistance from the Costa Mesa Police Department and the Costa Mesa Fire Department.

Assistant United States Attorney Kathrynne N. Seiden of the Terrorism and Export Crimes Section is prosecuting this case.

A California man who firebombed a Planned Parenthood clinic in Costa Mesa, California, and plotted other attacks, including an attack on the Orange County, California, power grid in furtherance of a race war, an attack at Dodger Stadium during an LGBTQI+ pride night celebration, and the home invasions of Jewish homes in Los Angeles was sentenced today to nine years in prison and ordered to pay $1,000 in restitution.

Chance Brannon, 24, of San Juan Capistrano, who was an active-duty member of the U.S. Marine Corps stationed at Camp Pendleton at the time of the firebombing, was sentenced by U.S. District Judge Cormac J. Carney. Brannon has been in federal custody since his arrest in June 2023.

Brannon pleaded guilty in November 2023 to one count of conspiracy, one count of malicious destruction of property by fire and explosives, one count of possession of an unregistered destructive device, and one count of intentionally damaging a reproductive health services facility in violation of the Freedom of Access to Clinic Entrances (FACE) Act.

“The Justice Department does not tolerate the use of violence to intimidate and endanger,” said Deputy Attorney General Lisa Monaco. “This prosecution and today’s sentence hold the defendant accountable for placing lives at risk by launching a brazen attack with an explosive device against a health care facility.”

“The defendant violently attacked a reproductive healthcare facility and plotted multiple, potentially deadly assaults to advance his hate-fueled agenda,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendant’s assault on the Costa Mesa Clinic was designed to terrorize patients seeking reproductive healthcare and the people who provide it. Such violence has no place in the national discourse on reproductive health. The Justice Department will continue to investigate and prosecute those who seek to use threats of violence, force, and destruction of property to target vulnerable communities.”

“This defendant’s deep-seated hatred led him to commit a firebombing and plan many other acts of violence, including starting a race war,” said U.S. Attorney Martin Estrada for the Central District of California. “This prosecution sends a message that we will act decisively to protect all members of our community from acts of violence, and that we will remain united against hate.”   

“Brannon’s deep-rooted hatred and extremist views inspired him to target individuals or groups who did not conform to his neo-Nazi worldview and, in one case, led him to carry out a violent attack which could have killed innocent people,” said Acting Assistant Director in Charge Mehtab Syed of the FBI Los Angeles Field Office. “I’m proud of the hard work and collaboration by the Joint Terrorism Task Force, whose members built this case and apprehended Brannon before additional acts of domestic terrorism could be carried out, as well as the hard work by prosecutors and agents leading to today's sentencing.”

“This case represents the successful interagency coordination between Naval Criminal Investigative Service (NCIS), Costa Mesa first responders, and the FBI’s Joint Terrorism Task Force,” said Assistant Special Agent in Charge Michael Payne of the NCIS Marine West Field Office. “Such acts of terror in an attempt to preventing access to reproductive health services is intolerable.”

In February and March 2022, Brannon and his co-defendants, Tibet Ergul, 22, of Irvine, California, and Xavier Batten, 21, of Brooksville, Florida, conspired to use a Molotov cocktail to destroy a commercial property. Brannon considered various targets, including the Anti-Defamation League office in San Diego, but ultimately chose to target a Planned Parenthood clinic in Costa Mesa to scare pregnant women, deter doctors and staff from providing abortion services, and encourage similar violent acts. 

During the early morning hours of March 13, 2022, Brannon and Ergul ignited and threw the Molotov cocktail at the clinic, striking the clinic entrance and starting a fire before fleeing. Brannon and Ergul returned hours later to surveil their work. In its sentencing memorandum, the government argued that “rather than allow the judicial and legislative systems to unfold, [Brannon] took matters into his own hands, weaponizing fear and intimidation to achieve his political ends.”

In May 2022, Brannon counseled Batten on how to “get away with” committing a similar attack to the Costa Mesa one. In June 2022, following the Supreme Court’s decision overturning Roe v. Wade, its 1973 ruling that recognized a constitutional right to abortion, Brannon and Ergul planned to use a second Molotov cocktail to damage or destroy a second Planned Parenthood clinic. Ultimately, Brannon and Ergul abandoned their plan because they saw law enforcement near the clinic they planned to target.

Beginning sometime in 2022 and continuing through the time of their arrests, Ergul and Brannon discussed starting a race war by attacking an electrical substation with the goal of disrupting the functioning of the power grid in Orange County. On a thumb drive disguised as a military-style necklace bearing the motto for the Marine Corps, Brannon kept a file containing an operation plan and a gear list for targeting a Southern California Edison substation. Brannon possessed several items on the gear list, including a rifle with “Total [N-word] Death” written in Cyrillic and a recording of the 2019 mosque shooting in Christchurch, New Zealand, where a white supremacist murdered 51 people and injured 40 others.

According to the government’s sentencing memorandum, Brannon used racial slurs for various minority groups, “made hateful comments towards all non-white individuals,” and discussed “cleans[ing]” the United States of particular ethnic groups. In the weeks leading up to his arrest, Brannon texted a friend, “Can we just be done with elections and have the race war already” and complained that “[p]eople will never do anything if everyone keeps waiting for [a race war] to start on its own.”

Throughout the early summer of 2023, Brannon and Ergul also discussed and researched how to attack Dodger Stadium on a night celebrating LGBTQI+ pride, including by using a remote-detonated device. As part of those conversations, Brannon shared a “WW2 sabotage manual” with Ergul, discussed doing “dry runs” to “case” the stadium, and conducted research on Ted Kaczynski, also known as the Unabomber.  Brannon and Ergul were arrested two days before the event, according to court documents.

Brannon was motivated by an extremist neo-Nazi ideology, prosecutors wrote in their sentencing memorandum. Brannon frequently greeted his friends using “88,” which is coded language for “Heil Hitler,” and he called Adolf Hitler “a great man who loved his people and tried to save us all from the jews,” according to the sentencing memorandum. Brannon possessed antisemitic writings, drawings, and literature in his bedroom at the time of his arrest and made comments to his fellow Marines, including “All jews deserve to die.”

Just days before his arrest, Brannon began planning with a friend to rob Jewish residents of the Hollywood Hills. As prosecutors argued in court documents, Brannon’s “use of racial and homophobic slurs, casual expressions of misogyny, and persistent expressions of violent intent went far beyond empty words; rather, defendant intended — and in many instances planned — to take overt action that would at the very least scare and intimidate women, racial minorities, and the Jewish and LGBTQI+ communities, and would at worst harm or even kill real victims.”

At the time of his arrest, Brannon possessed a short-barreled rifle and two silencers, which he had not registered with the National Firearms Registration and Transfer Record. According to the government’s sentencing memorandum, in 2022, Brannon placed calls to two foreign adversaries, hoping to offer himself up as a “mole” by providing U.S. intelligence.

Batten and Ergul pleaded guilty earlier this year to criminal charges in this case and have sentencing hearings scheduled, respectively, for May 15 and May 30.

The FBI and the NCIS investigated this matter, with substantial assistance from the Costa Mesa Police Department and the Costa Mesa Fire Department.

Assistant U.S. Attorney Kathrynne N. Seiden for the Central District of California’s Terrorism and Export Crimes Section is prosecuting this case.

LOS ANGELES – Federal authorities have arrested a San Fernando Valley man on federal charges alleging a scheme to market and sell malware that gave the malware purchasers control over victim computers and enabled them to access victims’ private communications, their login credentials, and other personal information, the Justice Department announced today.

Edmond Chakhmakhchyan, 24, of Van Nuys, who used the screenname “Corruption,” was arrested without incident Wednesday by special agents with the FBI. A two-count indictment was unsealed yesterday at Chakhmakhchyan’s arraignment, where he pleaded not guilty and was ordered to stand trial on June 4. His bond was set at $70,000.

The indictment alleges an agreement between the malware’s creator and Chakhmakhchyan in which Chakhmakhchyan would post advertisements for the Hive remote access trojan (RAT) on the “Hack Forums” website, accept Bitcoin payments for licenses to use the Hive RAT, and provide customer service to those who purchased the licenses.

Customers purchasing the malware “would transmit Hive RAT to protected computers and gain unauthorized control over and access to these computers, which allowed the RAT purchaser to close or disable programs, browse files, record keystrokes, access incoming and outgoing communications, and steal victim passwords and other credentials for bank accounts and cryptocurrency wallets, all without the victims’ knowledge or permission,” according to the indictment.

Chakhmakhchyan allegedly began working with the creator of the Hive RAT, previously known as “Firebird,” approximately four years ago, and advertised online the RAT’s many features, including features that allowed the owner to remotely access victim computers and intercept communications and data without the victim knowing.

After advertising the Hive RAT, according to the indictment, Chakhmakhchyan exchanged electronic messages with purchasers and explained to one buyer that the malware “allowed the Hive RAT user to access another person’s computer without that person knowing about the access.” After this purchaser told Chakhmakhchyan that “the point” of using the Hive RAT was because the victim had “20k in bitcoin on a blockchain wallet” and “project files worth over 5k,” Chakhmakhchyan agreed to sell the Hive RAT, the indictment alleges. Later, Chakhmakhchyan allegedly also sold a license for the Hive RAT to an undercover employee of a law enforcement agency.

The indictment specifically charges Chakhmakhchyan with one count of conspiracy – to advertise a device as an interception device, to transmit a code to intentionally cause damage to a protected computer, and to intentionally access a computer to obtain information – as well as one count of advertising a device as an interception device. Each count carries a statutory maximum penalty of five years in federal prison.

An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The FBI is investigating this matter. The Australian Federal Police provided substantial assistance in the investigation.

Assistant United States Attorney Sue J. Bai of the Terrorism and Export Crimes Section is prosecuting this case.

The Australian Federal Police also has charged an Australian national who is alleged to have been involved in the creation and sale of the malware, and the Commonwealth Director of Public Prosecutions will be prosecuting that matter.

A federal jury in Los Angeles convicted a California man this week for insider trading.

According to court documents and evidence presented at trial, Shahriyar Bolandian, 35, of Brentwood, Los Angeles, participated in an insider trading scheme that netted more than $650,000 in illicit profits. Between 2012 and 2013, Bolandian received material non-public information about two upcoming corporate acquisitions from his childhood friend, who was an investment banking analyst at J.P. Morgan Securities LLC. Bolandian then used the inside information to trade in advance of the public announcements of Integrated Device Technology Inc.’s April 2012 planned acquisition of PLX Technology Inc., and Salesforce.com Inc.’s June 2013 acquisition of ExactTarget Inc. As a result of his illegal trades, Bolandian personally made over $340,000, which he used, among other things, to cover previous trading losses and repay loans to family and friends.

The jury convicted of Bolandian of six counts of insider trading. He is scheduled to be sentenced on July 15 and faces a maximum penalty of 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Martin Estrada for the Central District of California; and Acting Assistant Director in Charge Mehtab Syed of the FBI Los Angeles Field Office made the announcement.

The FBI investigated the case.

Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ali Moghaddas for the Central District of California are prosecuting the case.

LOS ANGELES – A woman from the Mid-City area of Los Angeles pleaded guilty today to fraudulently obtaining more than $2 million in COVID-19 government loans and to submitting false claims in an unsuccessful effort to secure from the IRS nearly $1.3 million in pandemic-related tax credits.

Casie Hynes, 37, pleaded guilty to one count of wire fraud and one count of false claims.

According to her plea agreement, from June 2020 to December 2021, Hynes submitted more than 80 fraudulent applications for Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL) from banks and the United States Small Business Administration (SBA) in the names of approximately 20 companies. Congress designed these programs to provide government relief to businesses during the COVID-19 pandemic.

Hynes submitted the bogus applications in the names of both existing and newly created companies, including Nasty Womxn Project and She Suite Collective and others purportedly owned by Hynes or her friends and family members. On those applications, Hynes often used the personal information and signatures of other people without their authorization and even though those people were not involved with the companies. Hynes also provided false information on the applications, including as to the number of purported employees at the companies, the companies’ average monthly payroll, and who purportedly owned and controlled these sham businesses. Hynes also submitted fabricated tax documents and bank statements in support of the fraudulent PPP and EIDL applications.

In reliance on Hynes’ fraudulent loan applications, banks and the SBA approved PPP and EIDL loans for the various companies she created and then disbursed the COVID-relief funds into bank accounts she controlled and used to pay her own personal expenses.

Hynes admitted in her plea agreement that she intended to cause approximately $3,174,323 in losses and she received approximately $2,255,244 in fraudulent proceeds from this scheme.

In a related scheme, Hynes used some of the same companies named in her PPP and EIDL fraud to submit bogus tax forms to the IRS, requesting refunds. Following COVID-19’s outbreak, Congress enacted laws authorizing the IRS to reduce the employment tax burdens of small businesses and reimburse those businesses for wages paid to employees who were on sick or family leave and could not work because of the pandemic. During the tax years 2020 and 2021, the IRS offered the Employee Retention Credit and paid sick and family leave credit to businesses that were significantly impacted by COVID-19.

From May 2021 to April 2022, Hynes caused to be submitted 12 tax forms that sought refunds based on false statements on behalf of Nasty Womxn Project LLC, She Suite Ventures, and Casie Hynes Consulting. Hynes knew these companies had little to no business operations, did not have the number of employees she claimed, and did not pay the quarterly wages she claimed in the tax forms.

Hynes fraudulently sought approximately $1,255,703 in COVID-19 tax credits and tax refunds through these false claims, none of which the IRS paid.

United States District Judge Hernán D. Vera scheduled a January 30, 2025, sentencing hearing, at which time Hynes will face a statutory maximum sentence of 20 years in federal prison for the wire fraud count and up to five years in federal prison for the false claims count.

IRS Criminal Investigation investigated this matter.

Assistant United States Attorney Kristen A. Williams of the Major Frauds Section is prosecuting this case.

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 Hotline at (866) 720-5721 or via the NCDF web complaint form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

LOS ANGELES – A Japanese-language translator was charged today via federal criminal complaint with unlawfully transferring more than $16 million from a Major League Baseball (MLB) player’s bank account – without the player’s knowledge or permission – to pay off his own substantial gambling debts incurred with an illegal bookmaking operation.

Ippei Mizuhara, 39, of Newport Beach, is charged with bank fraud, a felony offense that carries a statutory maximum sentence of 30 years in federal prison.

Mizuhara is expected to appear in United States District Court in downtown Los Angeles for his initial appearance in the near future.

According to an affidavit filed with the complaint, from November 2021 to January 2024, Mizuhara wired more than $16 million in unauthorized transfers from a checking account belong to an MLB player identified in the affidavit as “Victim A,” who in fact is MLB star Shohei Ohtani. The transfers from this bank account allegedly were made from devices and IP addresses associated with Mizuhara, who served as Ohtani’s translator and de facto manager.

In 2018, Mizuhara accompanied Ohtani, who didn’t speak English, to a bank branch in Arizona to assist Ohtani in opening the account and translated for Ohtani when setting up the account details. Ohtani’s salary from playing professional baseball was deposited into this account and he never gave Mizuhara control of this or any of his other financial accounts, according to the affidavit. Mizuhara allegedly told Ohtani’s U.S.-based financial professionals, none of whom spoke Japanese, that Ohtani denied them access to the account.

In September 2021, Mizuhara began gambling with an illegal sports book and, several months later, started losing substantial sums of money, the affidavit states. During this time, the contact information on Ohtani’s bank account allegedly was changed to link the account to Mizuhara’s phone number and to an anonymous email address connected to Mizuhara.

Mizuhara allegedly also telephoned the bank and falsely identified himself as Ohtani to trick bank employees into authorizing wire transfers from Ohtani’s bank account to associates of the illegal gambling operation.

From January 2024 to March 2024, he also allegedly used this same account to purchase via eBay and Whatnot approximately 1,000 baseball cards – at a cost of approximately $325,000 – and had them mailed to Mizuhara under an alias, “Jay Min,” and mailed to the clubhouse for Ohtani’s current MLB team.

In an interview last week with law enforcement, Ohtani denied authorizing Mizuhara’s wire transfers. Ohtani provided his cellphone to law enforcement, who determined that there was no evidence to suggest that Ohtani was aware of, or involved in, Mizuhara’s illegal gambling activity or payment of those debts.

A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

IRS Criminal Investigation and Homeland Security Investigations are investigating this matter.

Assistant United States Attorneys Jeff Mitchell of the Major Frauds Section, Dan Boyle of the Environmental Crimes and Consumer Protection Section, and Rachel N. Agress of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.

LOS ANGELES – A Brentwood man has been found guilty by a jury of participating in an insider trading scheme that netted more than $650,000 in illicit profits, the Justice Department announced today.

Shahriyar Bolandian, 35, was found guilty Tuesday of six counts of insider trading.

According to court documents and evidence presented at a five-day trial, in 2012 and 2013, Bolandian received material non-public information about two upcoming corporate acquisitions by publicly traded companies. Bolandian then used the inside information to trade in advance of the public announcements of Integrated Device Technology Inc.’s April 2012 planned acquisition of PLX Technology Inc., and Salesforce.com Inc.’s June 2013 acquisition of ExactTarget Inc.

As a result of his illegal trades, Bolandian’s personal share of the scheme’s illicit proceeds was more than $340,000, which he used, among other things, to cover previous trading losses and repay loans to family and friends.

United States District Judge Terry J. Hatter Jr. scheduled a July 15 sentencing hearing, at which time Bolandian will face a statutory maximum sentence of 20 years in federal prison for each count.

The FBI investigated this matter.

Assistant United States Attorney Ali Moghaddas of the Corporate and Securities Fraud Strike Force and Trial Attorney Della Sentilles of the Justice Department’s Criminal Division’s Fraud Section are prosecuting this case.

LOS ANGELES – A federal grand jury today returned a four-count indictment against a father, his sister, and his son for an alleged kidnapping scheme in which the father pretended to act as an intermediary between the victim hostage’s family and the hostage takers while his son and sister crossed the border into the United States to collect the ransom money.

The following defendants – all from Rosarito, Mexico – are charged with one count of conspiracy to commit hostage taking and one count of conspiracy to demand a ransom payment:

• Mario Alex Medina, 53, a.k.a. “Shyboy;”
• Jose Salud Medina, 31, a.k.a. “Gordo,” who is Mario Medina’s son; and
• Maria Alejandra Medina, 50, who is Mario Medina’s sister and Jose Medina’s aunt.

Mario and Jose Medina also are each charged with one count of making a foreign communication with intent to extort.

Maria Medina has been in federal custody since March 26 is currently jailed without bond. Her arraignment is scheduled for April 16 in United States District Court in downtown Los Angeles. Mario Medina made his initial appearance on Monday in United States District Court in Bakersfield and has a detention hearing scheduled there for April 11. Jose Medina is incarcerated in Mexico.

According to the indictment, on November 5, 2022, Mario Medina directed and helped accomplices break into the house of a neighbor, identified in court documents as “R.V.,” kidnapping the victim at gunpoint, pistol whipping him and firing a gun near his head. The next day, one of the co-conspirators placed a ransom call to the victim’s family in Los Angeles County and demanded $70,000 for his release. The kidnappers, through WhatsApp, also sent a video of the victim being beaten.

On November 10, 2022, Jose Medina allegedly telephoned a relative of R.V.’s and threatened to kill the victim if R.V.’s family did not pay $30,000. Later that day, Mario Medina – pretending to be an intermediary between R.V.’s family and the hostage takers – allegedly told the victim’s family to meet at a McDonald’s restaurant in San Ysidro, located north of the U.S.-Mexico border, to make the ransom payment.  

Jose and Maria Medina allegedly met the victim’s family the next day at the McDonald’s restaurant, where they collected the $30,000 ransom payment, which they took with them back to Mexico.

The hostage takers on November 11, 2022, then left R.V. tied up and alone in a small, subterranean trench, where Mexican law enforcement rescued him later that day.           

An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

If convicted of all charges, the defendants would face a statutory maximum sentence of life imprisonment.

The FBI is investigating this matter.

Assistant United States Attorneys Jena A. MacCabe and Derek R. Flores of the Violent and Organized Crime Section are prosecuting this case.

The Justice Department’s COVID-19 Fraud Enforcement Task Force (CFETF) today released its 2024 report detailing the efforts of the task force and its member agencies in response to widespread fraud involving many COVID-19 relief programs targeted by fraudsters and other criminals who sought to exploit the government’s relief efforts for their personal gain.

“Since I established the COVID-19 Fraud Enforcement Task Force three years ago, we have charged more than 3,500 defendants, seized or forfeited over $1.4 billion in stolen COVID-19 relief funds, and filed more than 400 civil lawsuits resulting in court judgements and settlements,” said Attorney General Merrick B. Garland. “Our work is not over. We will continue our efforts to investigate and prosecute pandemic relief fraud and to recover the assets that have been stolen from American taxpayers.”

To date, the efforts of the task force’s member agencies has led to criminal charges against more than 3,500 defendants for losses of over $2 billion, civil enforcement actions resulting in more than 400 civil settlements and judgments of over $100 million, and over $1.4 billion seized or forfeited.

“Working with law enforcement and the Inspector General community, the Department of Justice has deployed a data-driven prosecution strategy to combat COVID-19 fraud—to the tune of over 3,500 defendants charged and more than $1.4 billion seized or forfeited,” said Deputy Attorney General Lisa Monaco. “But the time is now to ensure law enforcement has what it needs to finish the job. The statute of limitations must be extended and the necessary funding and data analytic tools secured for our prosecutors to recover hundreds of millions of dollars more in fraud proceeds, bring remaining offenders to justice, and disrupt criminal networks that continue to victimize our citizens.”

“While I am incredibly proud of the work of the CFETF and the significant law enforcement accomplishments, much work remains in the fight against COVID-19 fraud,” said Director Michael C. Galdo of the COVID-19 Fraud Enforcement Task Force. “The CFETF and its member agencies have ongoing investigations into hundreds of identity thieves, transnational fraud and money laundering networks, large-dollar individual fraudsters, and the businesses that facilitated these crimes. CFETF member agencies have improved their data analytics capabilities and are using these new skills to investigate fraud more efficiently and effectively.”

In addition to the efforts noted above, the CFETF has established five strike forces to focus on the most complex and harmful pandemic fraud—often committed by overseas, organized, or violent actors. Those strike forces, located in the U.S. Attorneys’ Offices across the country including the Districts of Maryland, New Jersey, Colorado, the Southern District of Florida, and a joint task force co-located in the Eastern and Central Districts of California, are responsible for indicting 250 defendants to date, including gang members, inveterate fraudsters, and overseas rings committing a myriad of cyber-enabled fraud against our citizens and government programs.

CFETF members also established the National Unemployment Insurance Fraud Task Force, a first-of-its-kind task force that developed a data sharing and lead development process within OCDETF’s International Organized Crime Intelligence Operation Center (IOC-2), using data from pandemic relief programs. The NUIFTF has used that process to disseminate over 100 leads and intelligence associated with over $3 billion in suspected pandemic fraud.

In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Justice Department in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.

The CFETF members include Justice Department components, including the Criminal Division, Civil Division, U.S. Attorneys, Executive Office for U.S. Attorneys, FBI, Organized Crime Drug Enforcement Task Forces, Office of the Inspector General, National Unemployment Insurance Fraud Task Force, and INTERPOL Washington; and key interagency partners, including Homeland Security Investigations, IRS Criminal Investigations, U.S. Secret Service, U.S. Postal Inspection Service, and multiple representatives of the Office of Inspector General community, including Department of Labor, Department of Treasury, Tax Administration, Department of Homeland Security, Small Business Administration, Department of Health and Human Services, Department of Veterans Affairs, Social Security Administration, Federal Deposit Insurance Corporation, Federal Housing Finance Agency, Federal Reserve Board, Special Inspector General for Pandemic Relief, and the Pandemic Response Accountability Committee.

CFETF 2024 Report

Fact Sheet 

LOS ANGELES – A Ventura County man was sentenced today to 140 months in federal prison for soliciting on social media platforms sexually explicit photos from an individual he thought was a 14-year-old girl.

Thomas Kern Gissell, 29, of Moorpark, was sentenced by United States District Judge John F. Walter, who also placed Gissell on 20 years of supervised release when Gissell eventually is released from prison and ordered him to pay $5,100 in special assessments and $27,000 in restitution.

Gissell pleaded guilty on January 5 to one count of attempted enticement of a minor to engage in criminal sexual activity.

The Ventura County District Attorney’s Office began investigating Gissell after receiving information that he had contacted undercover law enforcement officers posing as teenage girls. According to the affidavit in support of a complaint filed in this case, Gissell engaged in online chats with the individuals and asked them to send nude photos.

Specifically, in August and September of 2022, Gissell knowingly attempted to entice a person whom he believed was a 14-year-old girl to engage in sexual activity.  Gissell further admitted in his plea agreement to sending the purported 14-year-old girl images of a lingerie gift card and images of the lingerie he wanted her to purchase with the gift card that he provided.

Gissell was originally arrested in February 2023 pursuant to charges filed by the Ventura County District Attorney’s Office. The matter was subsequently presented to the United States Attorney’s Office, which filed the federal complaint in late February 2023.

The Ventura County Child Exploitation and Human Trafficking Task Force is comprised of investigators and prosecutors with the Ventura County Sheriff's Office, the Ventura County District Attorney’s Office, the Simi Valley Police Department, the Oxnard Police Department, the Santa Barbara County Sheriff's Office, the FBI, and the United States Attorney’s Office.

Members of the Task Force are specially trained in investigating online child sexual exploitation and human trafficking, and they strive to provide rapid responses to the sexual victimization of children. The Gissell investigation is the first criminal case brought by the Task Force.

Assistant United States Attorney Kellye M. Ng of the Violent and Organized Crime Section prosecuted this case.

RIVERSIDE, California – A Riverside County man was taken into federal custody today on a grand jury indictment alleging he distributed fentanyl to two victims – one of whom was under 21 years of age – who suffered fatal overdoses within a two week-span, the Justice Department announced today.

Edward Hernandez, 24, of Menifee, was charged in a two-count indictment returned on March 13.

Hernandez is charged with one count of distribution of fentanyl resulting in death and one count of distribution of fentanyl to a person under the age of 21 resulting in death. His arraignment is scheduled for this afternoon in United States District Court in Riverside.

According to the indictment, on April 10, 2020, Hernandez knowingly and intentionally distributed fentanyl to a victim, identified in court documents as “R.R.” The victim later ingested the powerful synthetic opioid – estimated to be 50 times more powerful than heroin – and suffered a fatal overdose the following day.

On April 21, 2020, Hernandez allegedly knowingly and intentionally distributed fentanyl to a second victim, identified in the indictment as “T.G.,” a person under the age of 21 years. Two days later, T.G. died from a fentanyl overdose.

An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Hernandez initially was charged in state court by the Riverside County District Attorney’s Office, which will seek to dismiss its case in light of the federal charges.

The Riverside County Sheriff’s Department’s Overdose Death Investigations and Narcotics Unit, along with the Drug Enforcement Administration, are investigating this matter.

Special Assistant United States Attorney Stephen T. Merrill of the Riverside Branch Office is prosecuting this case.

LOS ANGELES – A Beverly Hills man pleaded guilty today to federal criminal charges for causing investors more than $18 million in losses – while he was completing a sentence in a prior criminal case – by duping them with false claims about his companies that purportedly invested in hemp farms and cannabis-infused retail products as well as a sham bottling business.

Mark Roy Anderson, 69, pleaded guilty to two counts of wire fraud.

According to his plea agreement, Anderson engaged in two separate schemes that swindled victims, which he committed shortly after his release from federal prison but while on home confinement and, later, while on supervised release for a previous fraud conviction.

          Harvest Farm Group       

In the first scheme, from June 2020 to April 2021, Anderson tricked investors into providing funding for his company, called Harvest Farm Group, to harvest and process hemp grown on his farm into medical-grade cannabidiol (CBD) isolate – a chemical found in marijuana – to be sold for a substantial profit.

Anderson convinced investors to invest in Harvest Farm Group by falsely representing that, through the company, he owned and operated a hemp farm in Kern County. He also lied that had already completed successful and profitable harvests of hemp from the farm. He also falsely said he was using his own machinery and equipment to convert the hemp into CBD isolate and Delta 8, a psychoactive substance that, like CBD isolate, could be used in consumer products ranging from olive oil to body cream.

Anderson attempted to maintain a veneer of trustworthiness by taking steps to assure investors Harvest Farm Group was legitimate and he was not the “Mark Roy Anderson” with multiple prior fraud convictions. Anderson concealed that he had been convicted of multiple federal and state felony crimes, including mail fraud, wire fraud, grand theft, forgery, preparing false evidence, and money laundering. He also concealed that he was still serving a criminal sentence and was on supervised release at the time he was soliciting investments.

To stall victim investors from making collection efforts and reporting him to law enforcement, Anderson falsely told them that sales of products derived from hemp grown at the farm had been delayed because of the COVID-19 pandemic, misleadingly promised that he would pay the victims money from purported sales he had made to Canadian companies, and falsely promised that he would otherwise return their money.

          Bio Pharma and Verta Bottling

In the second scheme, which ran from April 2021 to May 2023, Anderson deceived investors by soliciting money for Bio Pharma and Verta Bottling, two of his sham companies, by claiming that these businesses successfully manufactured, bottled, and packaged commercial products.

Specifically, Bio Pharma purportedly manufactured and sold products infused with CBD, including products such as CBD-infused avocado oil, olive oil, pain cream, gummies, tequila, and chili oil. Anderson also claimed that Verta Bottling manufactured and sold beverages and a variety of food products.

Anderson falsely stated that his bottling companies owned and possessed millions of dollars’ worth of assets, including – in Bio Pharma’s case – hemp biomass, CBD isolate, CBD oil, and – in Verta Bottling’s case – manufacturing equipment and an assignable lease for a warehouse to manufacture and sell its products.

Anderson’s other lies to investors included false claims that his bottling companies had at least $10 million in purchase-order contracts from suppliers. He drafted fake legal and business documents, which included fabricated purchase order contracts purporting to show agreements with third party companies to purchase tens of millions of dollars’ worth of products manufactured by the Anderson bottling companies. Anderson also provided victims samples of products purportedly manufactured by his purported bottling companies.

Instead of investing victim funds as he promised, Anderson instead used their money on personal expenses. He has agreed to forfeit his ill-gotten gains from these schemes, including 15 cars – one of them a Ferrari – and real estate in Ojai.

In total, Anderson solicited more than $18.8 million from 45 victims for both schemes, causing victims to lose approximately $18,376,150.

United States District Judge Fernando L. Aenlle-Rocha scheduled a sentencing hearing for August 23, at which time Anderson will face a statutory maximum sentence of 20 years in federal prison for each count.

The FBI is investigating this matter.

Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section is prosecuting the case.

LOS ANGELES – A South Bay man has been sentenced to 360 months in federal prison for attempting – via text messages and audio calls – to convince an 11-year-old girl to produce child sexual abuse material (CSAM), the Justice Department announced today.

Anthony Frank Scovotto, 58, of San Pedro, was sentenced on Monday by United States District Judge Dale S. Fischer.

Scovotto pleaded guilty in May 2023 to one count of attempted production of child pornography.

In April and May of 2017, Scovotto contacted the victim, whom he believed was 12 years old, via audio calls and text messages. To convince the victim to produce CSAM, Scovotto told the victim that he loved her and that they were “meant for each other.”

Scovotto pretended to be 18 years old, and he instructed the victim to contact him in an online chat room. While they were both in the chat room, Scovotto asked the victim to take off her clothes. In text messages, Scovotto asked the victim to send him sexually explicit photographs of herself.

In his plea agreement, Scovotto admitted that in 2017 he separately contacted two additional victims online, both of whom were minors. He asked both victims to send him sexually explicit photographs of themselves, which they did.

“[Scovotto] preyed upon vulnerable pre-teen and adolescent girls by posing as a teenager or young man and pretending to love and care for them,” prosecutors argued in a sentencing memorandum. “He betrayed their trust and manipulated them for his sexual pleasure.”

In arguing in favor of the 30-year prison sentence, prosecutors noted that Scovotto’s criminal history includes a felony conviction in 2001 in Orange County Superior Court for attempted lewd and lascivious acts upon a child younger than 14 years old.

The FBI investigated this matter.

Assistant United States Attorneys Claire E. Kelly and Scott M. Lara of the Violent and Organized Crime Section prosecuted this case.

LOS ANGELES – Three Mexican men, who last year were arrested in El Monte with more than 1 million fentanyl pills, each pleaded guilty today to a federal narcotics charge.

At a hearing today before United States District Judge Stanley Blumenfeld Jr., the following three defendants – all from Sinaloa, Mexico – pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute fentanyl:

• Florencio Camacho Allan, 29;
• Gerardo Gaxiola Patiño, 30; and
• Alex Valdez Oroz, 26.

According to their plea agreements, from September 2022 to March 2023, the defendants conspired with each other and others to knowingly distribute fentanyl. Prior to March 7, 2023, a Mexico-based drug broker arranged a deal with a buyer to sell approximately 2 million fentanyl pills. The deal was to occur in the Los Angeles area and the buyer agreed to pay approximately 75 cents per pill. As part of the deal, the buyer also agreed to first purchase a sample “box” of approximately 10,000 fentanyl pills at the same price.

On March 7, 2023, the drug broker coordinated a meeting between Allan and the buyer to occur that day at a Denny’s restaurant in El Segundo to buy the sample fentanyl pills. Later that day, Allan, Patiño, and Oroz arrived in a white car at the Denny’s. While Oroz waited in the driver’s seat of the car, Allan and Patiño met the buyer and the buyer’s associate inside the restaurant, where they discussed the plan to sell approximately 1 million more fentanyl pills later that day, and the sale of another 1 million fentanyl pills the next day.

After the meeting, Allan, Patiño, the buyer and the associate went to the white car, where Patiño retrieved a black bag, containing approximately 10,082 fentanyl pills, weighing approximately 1.1 kilograms (2.5 pounds), out of the white car and handed it to the buyer in exchange for $7,500. The three defendants then drove away.

Later that day, Allan confirmed with one of the buyers that they had possession of the larger set of pills and – via a WhatsApp video call – showed one buyer the pills, which appeared to be in the car’s trunk. They agreed to do the 1-million fentanyl pill deal in a Holiday Inn parking lot.

At the Holiday Inn, law enforcement detained Allan and Oroz in the parking lot. Officers also found and detained Patiño, who was inside the Holiday Inn lobby bathroom.

Inside the white car, law enforcement found at least three duffle bags in the trunk and back seat, each containing bundles of fentanyl pills. In total, the defendants knowingly possessed with intent to distribute approximately 1,016,270 fentanyl pills, weighing approximately 109.3 kilograms (241 pounds).

Judge Blumenfeld scheduled an August 13 sentencing hearing, at which time each defendant will face a mandatory minimum sentence of 10 years in federal prison and a statutory maximum sentence of life imprisonment.

The Drug Enforcement Administration investigated this matter as part of the High Intensity Drug Trafficking Area (HIDTA) program with Homeland Security Investigations, the Hawthorne Police Department, the Fullerton Police Department, the El Monte Police Department, and the California National Guard providing assistance.

Assistant United States Attorney K. Afia Bondero of the Major Frauds Section is prosecuting this case.

LOS ANGELES – A Beverly Hills man pleaded guilty today to stealing jewelry and other items from victims staying at a luxury hotel last year, then traveling to Florida to sell the stolen goods.

Jobson Marangoni De Castro, 38, pleaded guilty to one count of interstate transportation of stolen property, a felony that carries a statutory maximum sentence of 10 years in federal prison.

According to court documents, two victims – both residents of Brazil – traveled together to Beverly Hills in May 2023 to attend a fashion event scheduled several days after their arrival. On the evening of May 10, 2023, De Castro traveled by Uber to the victims’ hotel, tricked a hotel employee into giving him a key to the victims’ room, and – while the victims were away having dinner – stole six suitcases belonging to them.

The suitcases contained jewelry, clothing, and accessories worth as much as approximately $1.8 million, prosecutors contend.

Later that evening, the victims returned to their hotel room to discover all six of their suitcases were missing. The hotel staff then notified law enforcement about the theft.

De Castro then traveled to Miami and, on May 17, 2023, messaged a buyer in Miami on Instagram. De Castro told the buyer he wanted to sell jewelry – a diamond necklace and luxury watch – but he did not have papers for them because he had found them in a box belonging to his late mother. The jewelry matched the description of that stolen from the victims in Beverly Hills a few days earlier, according to court documents. The next day, the buyer wired De Castro $50,000, for the jewelry, which De Castro brought to the buyer’s store in Miami.

The name De Castro provided to the buyer was “Jobs Marangoni,” the same name he used for his Uber account.

De Castro has been in federal custody since August 2023.

United States District Judge Hernán D. Vera scheduled an April 30 evidentiary hearing for De Castro to determine the loss amount. A sentencing hearing is expected to be scheduled in the following months.

The FBI and the Beverly Hills Police Department investigated this matter.

Assistant United States Attorney Alexander S. Gorin of the General Crimes Section is prosecuting this case.

LOS ANGELES – A Romanian man has been sentenced to 75 months in federal prison for leading a group that used illegal skimmers on ATMs to harvest data, created counterfeit debit cards using the stolen account holder information, then used the cloned cards to make cash withdrawals from numerous victims, including low-income individuals on public assistance, the Justice Department announced today.

Marius Oprea, 38, who most recently was residing in a short-term rental property in Port Hueneme, was sentenced late Friday by United States District Judge Maame Ewusi-Mensah Frimpong. In addition to the prison term, Judge Frimpong ordered Oprea to pay $28,974 in restitution.

Oprea – whom prosecutors believe illegally entered the United States – pleaded guilty in June 2023 to one count of conspiracy to commit bank fraud, admitting that he and his accomplices used counterfeit cards to fraudulently make withdrawals from the accounts of numerous victims.

Using an alias, Oprea received sophisticated skimming devices shipped to a mail drop he rented, lived in a short-term residence, and maintained the master list of stolen account information, according to a sentencing memorandum filed by prosecutors that called the criminal crew “unusually professional.”

The skimming ring focused on Bank of America accounts, which provides debit cards for California anti-poverty programs, including those providing benefits for unemployed and disabled individuals.

“[T]he individuals whose accounts are looted most frequently are those who depend on government payments to survive,” according to declaration by an FBI agent.

“[Oprea] illegally entered our country for one purpose – to take advantage of the weaker ATM security here, which does not require cards containing computer chips,” according to the government’s sentencing memorandum. “He pursued fraud like a full-time job, netting thousands of victims’ accounts.”

The FBI investigated this case and received significant assistance from the Ventura County District Attorney’s Office and the Los Angeles County Sheriff’s Department.

Assistant United States Attorney Andrew Brown of the Major Frauds Section prosecuted this case.

This case is the product of an investigation by the Vulnerable Communities Task Force, which is focused on investigating and prosecuting individuals and entities that prey on communities that typically are less likely to report crimes to law enforcement and historically have had less legal recourse to address the offenders targeting them. These groups may include immigrants and migrant workers defrauded in immigration schemes, indigent individuals reliant on public benefits, the elderly, and those who have been reluctant to seek assistance from government authorities.

The owner of two California-based hospice companies, along with his biller and consultant, were sentenced yesterday for their respective roles in a scheme that resulted in stealing over $9 million from Medicare in false and fraudulent claims for hospice services.

Gayk Akhsharumov, 40, of Glendale, California, the manager and beneficial owner of San Gabriel Hospice and Palliative Care Inc. (San Gabriel) and Broadway Hospice Inc., was sentenced to one year and one day in prison and ordered to pay $9,185,211 in restitution. Akhsharumov’s biller and consultant, Karen Sarkisyan, also known as Kevin Sarkisyan, 45, also of Glendale, was sentenced to one year and one day in prison and ordered to pay $3,688,050 in restitution.

According to court documents, from around January 2018 through May 2021, Akhsharumov used his two hospice companies to defraud Medicare of approximately $9 million. During the scheme, Akhsharumov concealed his ownership and control over the hospice entities from Medicare, inserted nominee owners, paid kickbacks to patient recruiters, and profited from the scheme. In April 2020, after San Gabriel had ceased operations, Akhsharumov used the company to fraudulently obtain COVID-19 relief funds. Akhsharumov submitted or caused the submission of fraudulent loan applications to the Small Business Administration for an Economic Injury Disaster Loan and to a financial institution for a Paycheck Protection Program loan, for which San Gabriel received $50,000. He also stole approximately $91,483 in funds deposited into San Gabriel’s bank account through the Provider Relief Fund program, a Department of Health and Human Services program that was intended to rapidly distribute pandemic-related funding to health care providers that met certain criteria. 

During the scheme, Sarkisyan submitted false and fraudulent Medicare enrollment forms for San Gabriel, falsely identifying a straw owner as the sole owner and manager and concealing the actual owners and managers. As a result, San Gabriel submitted false and fraudulent claims to Medicare, which resulted in Medicare paying approximately $3,668,050 to San Gabriel, of which $3,180,677 was paid after Sarkisyan submitted the false enrollment applications.

Akhsharumov pleaded guilty on March 13, 2023, to conspiracy to commit health care fraud. Sarkisyan pleaded guilty on April 3, 2023, to conspiracy to defraud the United States.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Martin Estrada for the Central District of California; Special Agent in Charge Timothy B. DeFrancesca of the Department of Health and Human Services Office of Inspector General (HHS-OIG); Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division; and Acting Assistant Director in Charge Amir Ehsaei of the FBI Los Angeles Field Office made the announcement.

HHS-OIG and the FBI Los Angeles Field Office investigated the case.

Assistant Chief Niall M. O’Donnell and Trial Attorney Patrick J. Queenan of the Criminal Division’s Fraud Section prosecuted the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, the program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.