Central District of California

          LOS ANGELES – The Justice Department today filed a lawsuit alleging the managers and owners of two apartment buildings in the Westlake neighborhood in Los Angeles violated federal law by sexually harassing their female tenants for more than a decade.

          The complaint, filed in United States District Court in Los Angeles, alleges that Filomeno Hernandez, Ramin Akhavan, Bonnie Brae Investment Services LLC, and Westlake Property Services LLC violated the Fair Housing Act. The defendants manage or own the properties at issue in this case – 729 S. Bonnie Brae St. and 720 S. Westlake Ave. – which are located near MacArthur Park in the Westlake District of the City of Los Angeles.

          Hernandez, the locations’ property manager, sexually harassed female residents at the rental properties from at least 2006 through the present, the lawsuit alleges. The complaint alleges that Hernandez engaged in harassment that included, among other things, frequently and repeatedly engaging in unwanted sexual touching, including sexual assault; making unwelcome sexual advances and comments; offering to reduce rent or excusing late or unpaid rent in exchange for sex; and entering the homes of female tenants without their consent.

          “Sexual harassment of vulnerable women is unacceptable, and we will not tolerate this behavior by any landlord or property manager,” said Nick Hanna, the United States Attorney for the Central District of California. “Those who abuse their positions of power will be held accountable under the Fair Housing Act.”

          “No woman should have to endure sexual harassment, especially in her own home,” said Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division. “Sexual harassment in housing is unacceptable and illegal, and the Justice Department will continue vigorously to enforce the Fair Housing Act to combat this type of discrimination and to obtain relief for its victims.”

          The lawsuit seeks monetary damages to compensate the victims, civil penalties, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct, which must be proven in federal court.

          In October 2017, the Department of Justice launched an initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative. Since launching the initiative, the Department of Justice has filed 13 lawsuits alleging a pattern or practice of sexual harassment in housing.

          The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. More information about the Civil Rights Section, Civil Division of the United States Attorney’s Office for the Central District of California is available at https://www.justice.gov/usao-cdca/civil-division/civil-rights-section.

          Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings operated or owned by Filomeno Hernandez or Ramin Akhavan, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line:

• English language: Call 1-800-896-7743, then press 1 to continue in English and select mailbox 9992 to leave a message; or
• Spanish language: Call 1-800-896-7743, then press 2 to continue in Spanish and select mailbox 6 to leave a message.

          Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at fairhousing@usdoj.gov or may file a complaint about housing discrimination or other civil rights violations with the Civil Rights Section, Civil Division of the United States Attorney’s Office by calling (213) 894-2879, emailing USACAC.CV-CivilRights@usdoj.gov or completing and submitting this form.

The Justice Department announced today that it has filed a lawsuit alleging that female tenants in residential apartment buildings in Los Angeles, California, were subjected to sexual harassment and retaliation in violation of the federal Fair Housing Act. 

Today’s lawsuit, filed in the U.S. District Court for the Central District of California, alleges that property manager Filomeno Hernandez sexually harassed female residents at the rental properties since at least 2006 through the present. According to the complaint, Hernandez engaged in harassment that included, among other things, frequently and repeatedly engaging in unwanted sexual touching, including sexual assault, making unwelcome sexual advances and comments, offering to reduce rent or excusing late or unpaid rent in exchange for sex, and entering the homes of female tenants without their consent. The apartment buildings are located at 729 South Bonnie Brae Street and 720 Westlake Avenue, near MacArthur Park. The Department’s complaint names Filomeno Hernandez, Ramin Akhavan, Bonnie Brae Investment Services LLC, and Westlake Property Services LLC as defendants. Defendants manage or own properties where the illegal conduct occurred.

“No woman should have to endure sexual harassment, especially in her own home,” said Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division. “Sexual harassment in housing is unacceptable and illegal, and the Justice Department will continue vigorously to enforce the Fair Housing Act to combat this type of discrimination and to obtain relief for its victims.”

“The sexual harassment of vulnerable women is unacceptable, and we will not tolerate this behavior by any landlord or property manager,” said Nick Hanna, the United States Attorney for the Central District of California. “Those who abuse their positions of power will be held accountable under the Fair Housing Act.”

In October 2017, the Department of Justice launched an initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, a public awareness campaign, including the release of a national Public Service Announcement and a new joint Task Force with HUD to combat sexual harassment in housing. Since launching the initiative, the Department of Justice has filed thirteen lawsuits alleging a pattern or practice of sexual harassment in housing.

Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties, and a court order barring future discrimination. The complaint contains allegations of unlawful conduct, which must be proven in federal court.

The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. More information about the Civil Rights Section, Civil Division of the United States Attorney’s Office for the Central District of California is available at https://www.justice.gov/usao-cdca/civil-division/civil-rights.

Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings operated or owned by Filomeno Hernandez or Ramin Akhavan, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line:

• English language: Call 1-800-896-7743, then press 1 to continue in English and select mailbox 9992 to leave a message; or
• Spanish language: Call 1-800-896-7743, then press 2 to continue in Spanish and select mailbox 6 to leave a message.

Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at fairhousing@usdoj.gov, or may file a complaint about housing discrimination or other civil rights violations with the Civil Rights Section, Civil Division of the United States Attorney’s Office by calling (213) 894-2879, emailing USACAC.CV-CivilRights@usdoj.gov, or completing and submitting this form.

WASHINGTON, D.C. – El Departamento de Justicia anunció el lunes que ha presentado una demanda que alega que ciertas inquilinas de unos edificios residenciales en Los Ángeles, California, fueron víctimas de acoso sexual y represalias, en contra de la ley federal de Vivienda Justa. 

La demanda del lunes, presentada ante el Tribunal de Distrito de los EE. UU. para el Distrito Central de California, alega que el administrador de propiedad Filomeno Hernández acosó sexualmente a inquilinas de las propiedades de alquiler, al menos desde el 2006 hasta el día presente. Según la demanda, el acoso por Hernández incluyó, entre otras cosas, contacto sexual no deseado repetido y frecuente, incluyendo agresión sexual, insinuaciones y comentarios sexuales, ofertas de reducir el alquiler o de perdonar pagos tardíos o impagos del alquiler a cambio de sexo y la entrada en las casas de inquilinas sin su consentimiento. Los edificios residenciales están ubicados en 729 South Bonnie Brae Street y 720 Westlake Avenue, cerca del Parque MacArthur. La demanda del Departamento nombra como acusados a Filomeno Hernández, Ramin Akhavan, Bonnie Brae Investment Services LLC y Westlake Property Services LLC. Los acusados son administradores o propietarios en los edificios donde la conducta ilícita tuvo lugar.

«Ninguna mujer debe soportar el acoso sexual, ni mucho menos en su propia casa», declaró Eric Dreiband, Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El acoso sexual en la vivienda es inaceptable e ilegal, y el Departamento de Justicia seguirá haciendo cumplir enérgicamente la ley de Vivienda Justa para combatir este tipo de discriminación y obtener compensación para sus víctimas».

«El acoso sexual de mujeres vulnerables no es aceptable y no toleraremos este tipo de comportamiento por parte de propietarios o administradores de propiedad», afirmó Nick Hanna, el Fiscal Federal de los Estados Unidos para el Distrito Central de California. «Se obligará a aquellas personas que abusen de sus posiciones de poder rendir cuentas en virtud de la ley de Vivienda Justa».

En octubre del 2017, el Departamento de Justicia dio pie a una iniciativa para combatir el acoso sexual en el ámbito de la vivienda. En abril del 2018, el Departamento anunció el lanzamiento nacional de la iniciativa, incluyendo tres componentes principales: herramientas de alcance para apalancar la red nacional del Departamento de Fiscalías Federales de los EE. UU., una campaña de concientización pública, incluyendo la publicación de unir el acoso sexual en la vivienda. Desde el lanzamiento de la iniciativa, el Departamento de Justicia ha presentado trece demandas que alegan un patrón o una práctica de acoso sexual en la vivienda.

La demanda del lunes busca indemnización por daños y perjuicios para compensar a las víctimas, sanciones civiles, y una orden judicial que prohíba la discriminación en el futuro. La demanda contiene alegaciones de conducta ilícita que deberán ser probadas ante un tribunal federal.

La ley federal de Vivienda Justa prohíbe la discriminación en la vivienda por motivos de raza, color de piel, religión, origen nacional, género, discapacidad o estado familiar. Para más información acerca de la División de Derechos Civiles y las leyes que hace cumplir, vaya a https://www.justice.gov/crt-espanol. Para más información acerca de la Sección de Derechos Civiles de la División Civil de la Fiscalía de los Estados Unidos para el Distrito Central de California, vaya a https://www.justice.gov/usao-cdca/civil-division/civil-rights-espanol.

Aquellos individuos que creen haber sido víctimas de acoso sexual u otros tipos de discriminación en la vivienda en las viviendas de alquiler que son de propiedad de Filomeno Hernández o Ramin Akhavan u operadas por los mismos, o aquellos que tengan información que podría ser de interés en este caso, favor de llamar a la línea para informantes de discriminación en la vivienda:

• Inglés: Llame al 1-800-896-7743 y pulse 1 para continuar en inglés. Elija el buzón 9992 para dejar un mensaje; o
• Español: Llame al 1-800-896-7743 y pulse 2 para continuar en español. Elija el buzón 6 para dejar un mensaje.

También se puede denunciar el acoso sexual y otras formas de discriminación en la vivienda por medio de correo electrónico al Departamento de Justicia a fairhousing@usdoj.gov, o bien se puede  presentar una demanda acerca de la discriminación en la vivienda o de otras vulneraciones de derechos civiles ante la Sección de Derechos Civiles, División Civil de la Fiscalía de los Estados Unidos por teléfono al (213) 894-2879, correo electrónico a USACAC.CV-CivilRights@usdoj.gov o al rellenar y entregar este formulario.

          LOS ÁNGELES – El Departamento de Justicia anunció hoy que ha presentado una demanda que alega que los propietarios y un administrador de dos edificios residenciales en el barrio de Westlake en Los Ángeles acosaron sexualmente a sus inquilinas por más de una década, en contra de la ley federal.

          La demanda, presentada ante el Tribunal de Distrito de los EE. UU. en Los Ángeles, alega que Filomeno Hernández, Ramin Akhavan, Bonnie Brae Investment Services LLC y Westlake Property Services LLC violaron la ley federal de Vivienda Justa. Los demandados son administradores o propietarios de los edificios pertinentes – 729 South Bonnie Brae Street y 720 Westlake Avenue – que están ubicados cerca del Parque MacArthur en el distrito de Westlake en la ciudad de Los Ángeles.

          La demanda alega que Hernández, el administrador de las propiedades, acosó sexualmente a inquilinas de las propiedades de alquiler, al menos desde el 2006 hasta el día presente. Según la demanda, el acoso por Hernández incluyó, entre otras cosas, contacto sexual no deseado repetido y frecuente, incluyendo agresión sexual, insinuaciones y comentarios sexuales, ofertas de reducir el alquiler o de perdonar pagos tardíos o impagos del alquiler a cambio de sexo y la entrada en las casas de inquilinas sin su consentimiento.

          “El acoso sexual de mujeres vulnerables no es aceptable y no toleraremos este tipo de comportamiento por parte de propietarios o administradores de propiedad,” afirmó Nick Hanna, el Fiscal Federal de los Estados Unidos para el Distrito Central de California. “Se obligará a aquellas personas que abusen de sus posiciones de poder rendir cuentas en virtud de la ley de Vivienda Justa.”

          “Ninguna mujer debe soportar el acoso sexual, ni mucho menos en su propia casa,” declaró Eric Dreiband, Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “El acoso sexual en la vivienda es inaceptable e ilegal, y el Departamento de Justicia seguirá haciendo cumplir enérgicamente la ley de Vivienda Justa para combatir este tipo de discriminación y obtener compensación para sus víctimas.”

          En octubre del 2017, el Departamento de Justicia dio pie a una iniciativa para combatir el acoso sexual en el ámbito de la vivienda. En abril del 2018, el Departamento anunció el lanzamiento nacional de la iniciativa. Desde el lanzamiento de la iniciativa, el Departamento de Justicia ha presentado trece demandas que alegan un patrón o una práctica de acoso sexual en la vivienda.

          La demanda busca indemnización por daños y perjuicios para compensar a las víctimas, sanciones civiles, y una orden judicial que prohíba la discriminación en el futuro. La demanda contiene alegaciones de conducta ilícita que deberán ser probadas ante un tribunal federal.

          La ley federal de Vivienda Justa prohíbe la discriminación en la vivienda por motivos de raza, color de piel, religión, origen nacional, género, discapacidad o estado familiar. Para más información acerca de la División de Derechos Civiles y las leyes que hace cumplir, vaya a https://www.justice.gov/crt-espanol. Para más información acerca de la Sección de Derechos Civiles de la División Civil de la Fiscalía de los Estados Unidos para el Distrito Central de California, vaya a https://www.justice.gov/usao-cdca/civil-division/civil-rights-espanol.

          Aquellos individuos que creen haber sido víctimas de acoso sexual u otros tipos de discriminación en la vivienda en las viviendas de alquiler que son de propiedad de Filomeno Hernández o Ramin Akhavan u operadas por los mismos, o aquellos que tengan información que podría ser de interés en este caso, favor de llamar a la línea para informantes de discriminación en la vivienda:

• Inglés: Llame al 1-800-896-7743 y pulse 1 para continuar en inglés. Elija el buzón 9992 para dejar un mensaje; o
• Español: Llame al 1-800-896-7743 y pulse 2 para continuar en español. Elija el buzón 6 para dejar un mensaje.

          También se puede denunciar el acoso sexual y otras formas de discriminación en la vivienda por medio de correo electrónico al Departamento de Justicia a fairhousing@usdoj.gov, o bien se puede presentar una demanda acerca de la discriminación en la vivienda o de otras vulneraciones de derechos civiles ante la Sección de Derechos Civiles, División Civil de la Fiscalía de los Estados Unidos por teléfono al (213) 894-2879, correo electrónico a USACAC.CV-CivilRights@usdoj.gov o al rellenar y entregar este formulario.

          LOS ÁNGELES – El Departamento de Justicia anunció hoy que ha presentado una demanda que alega que los propietarios y un administrador de dos edificios residenciales en el barrio de Westlake en Los Ángeles acosaron sexualmente a sus inquilinas por más de una década, en contra de la ley federal.

          La demanda, presentada ante el Tribunal de Distrito de los EE. UU. en Los Ángeles, alega que Filomeno Hernández, Ramin Akhavan, Bonnie Brae Investment Services LLC y Westlake Property Services LLC violaron la ley federal de Vivienda Justa. Los demandados son administradores o propietarios de los edificios pertinentes – 729 South Bonnie Brae Street y 720 Westlake Avenue – que están ubicados cerca del Parque MacArthur en el distrito de Westlake en la ciudad de Los Ángeles.

          La demanda alega que Hernández, el administrador de las propiedades, acosó sexualmente a inquilinas de las propiedades de alquiler, al menos desde el 2006 hasta el día presente. Según la demanda, el acoso por Hernández incluyó, entre otras cosas, contacto sexual no deseado repetido y frecuente, incluyendo agresión sexual, insinuaciones y comentarios sexuales, ofertas de reducir el alquiler o de perdonar pagos tardíos o impagos del alquiler a cambio de sexo y la entrada en las casas de inquilinas sin su consentimiento.

          “El acoso sexual de mujeres vulnerables no es aceptable y no toleraremos este tipo de comportamiento por parte de propietarios o administradores de propiedad,” afirmó Nick Hanna, el Fiscal Federal de los Estados Unidos para el Distrito Central de California. “Se obligará a aquellas personas que abusen de sus posiciones de poder rendir cuentas en virtud de la ley de Vivienda Justa.”

          “Ninguna mujer debe soportar el acoso sexual, ni mucho menos en su propia casa,” declaró Eric Dreiband, Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “El acoso sexual en la vivienda es inaceptable e ilegal, y el Departamento de Justicia seguirá haciendo cumplir enérgicamente la ley de Vivienda Justa para combatir este tipo de discriminación y obtener compensación para sus víctimas.”

          En octubre del 2017, el Departamento de Justicia dio pie a una iniciativa para combatir el acoso sexual en el ámbito de la vivienda. En abril del 2018, el Departamento anunció el lanzamiento nacional de la iniciativa. Desde el lanzamiento de la iniciativa, el Departamento de Justicia ha presentado trece demandas que alegan un patrón o una práctica de acoso sexual en la vivienda.

          La demanda busca indemnización por daños y perjuicios para compensar a las víctimas, sanciones civiles, y una orden judicial que prohíba la discriminación en el futuro. La demanda contiene alegaciones de conducta ilícita que deberán ser probadas ante un tribunal federal.

          La ley federal de Vivienda Justa prohíbe la discriminación en la vivienda por motivos de raza, color de piel, religión, origen nacional, género, discapacidad o estado familiar. Para más información acerca de la División de Derechos Civiles y las leyes que hace cumplir, vaya a https://www.justice.gov/crt-espanol. Para más información acerca de la Sección de Derechos Civiles de la División Civil de la Fiscalía de los Estados Unidos para el Distrito Central de California, vaya a https://www.justice.gov/usao-cdca/civil-division/civil-rights-espanol.

          Aquellos individuos que creen haber sido víctimas de acoso sexual u otros tipos de discriminación en la vivienda en las viviendas de alquiler que son de propiedad de Filomeno Hernández o Ramin Akhavan u operadas por los mismos, o aquellos que tengan información que podría ser de interés en este caso, favor de llamar a la línea para informantes de discriminación en la vivienda:

• Inglés: Llame al 1-800-896-7743 y pulse 1 para continuar en inglés. Elija el buzón 9992 para dejar un mensaje; o
• Español: Llame al 1-800-896-7743 y pulse 2 para continuar en español. Elija el buzón 6 para dejar un mensaje.

          También se puede denunciar el acoso sexual y otras formas de discriminación en la vivienda por medio de correo electrónico al Departamento de Justicia a fairhousing@usdoj.gov, o bien se puede presentar una demanda acerca de la discriminación en la vivienda o de otras vulneraciones de derechos civiles ante la Sección de Derechos Civiles, División Civil de la Fiscalía de los Estados Unidos por teléfono al (213) 894-2879, correo electrónico a USACAC.CV-CivilRights@usdoj.gov o al rellenar y entregar este formulario.

          LOS ANGELES – The company that produces “Crystal Geyser Natural Alpine Spring Water” pleaded guilty this morning to federal charges of illegally storing and transporting hazardous waste created from filtering arsenic out of spring water at its facility in Olancha, California.

          CG Roxane, LLC pleaded guilty to one count of unlawful storage of hazardous waste and one count of unlawful transportation of hazardous material. In a plea agreement recently filed in United States District Court, CG Roxane agreed to pay a criminal fine of $5 million.

          According to court documents, CG Roxane obtained water by drawing groundwater from the eastern slope of the Sierra Nevada mountains that contained naturally occurring arsenic. The company used sand filters to reduce the concentration of arsenic so the water would meet federal drinking water standards. To maintain the effectiveness of the sand filters, CG Roxane back-flushed the filters with a sodium hydroxide solution, which generated thousands of gallons of arsenic-contaminated wastewater.

          For approximately 15 years, CG Roxane discharged the arsenic-contaminated wastewater into a manmade pond – known as “the Arsenic Pond” – at its Olancha facility along Highway 395.

          In March 2013, the Lahontan Regional Water Quality Control Board took a sample from the Arsenic Pond and in 2014 informed CG Roxane that the sample had an arsenic concentration that was more than eight times the hazardous waste limit, creating a risk to the area’s groundwater and wildlife. The water board referred the matter to the California Department of Toxic Substances Control (DTSC), which took its own samples that showed the Arsenic Pond had an arsenic concentration almost five times the federal hazardous waste limit. Subsequent sampling and testing by CG Roxane and its retained laboratory confirmed a similar arsenic concentration in the Arsenic Pond.

          DTSC officials met with CG Roxane representatives in April 2015, presented a list of preliminary violations, and instructed the company to arrange for the removal of the Arsenic Pond.

          In May 2015, CG Roxane hired two Los Angeles-area entities to remove the hazardous waste and transport it – which was done without the proper manifest and without identifying the wastewater as a hazardous material, according to court documents. The arsenic-contaminated wastewater was ultimately transported to a Southern California facility that was not authorized to receive or treat hazardous waste. As a result, more than 23,000 gallons of the wastewater from the Arsenic Pond allegedly was discharged into a sewer without appropriate treatment.

          CG Roxane pleaded guilty to the two felony offenses before United States District Judge S. James Otero, who scheduled a sentencing hearing for February 24.

          The two companies hired to transport and treat the wastewater – United Pumping Services, Inc. and United Storm Water, Inc., both located in the City of Industry – were charged along with CG Roxane in this case in 2018. Both of those companies are scheduled to go on trial on April 21. If convicted, each company would face a statutory maximum fine of $8 million.

          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 investigation in this case focused on alleged violations involving the handling, storage and transportation of CG Roxane’s wastewater, not the safety or quality of CG Roxane’s bottled water.

          The investigation in this matter is being conducted by the United States Environmental Protection Agency, Criminal Investigations Division and the United States Department of Transportation’s Office of Inspector General. These federal agencies received assistance from the California Department of Toxic Substances Control.

          This case is being prosecuted by Assistant United States Attorneys Dennis Mitchell, Heather C. Gorman and Michael G. Freedman of the Environmental and Community Safety Crimes Section.

          The United States Attorney’s Office for the Eastern District of California also assisted in the investigation.

          LOS ANGELES – A twice-deported Belizean national who currently is serving a nine-year sentence in a California prison for a domestic violence-related conviction was charged today with one felony count of illegal re-entry into the United States following his deportation.

          Akeem Garnett, 37, a.k.a. “Akeen Dean Garnett” and “Emerson Edmund Hewitt,” whose most recent residence was in Beverly Hills, was named in a one-count federal grand jury indictment that alleges he illegally re-entered the United States.

          According to the indictment, Garnett was deported from the United States on September 1, 2016 and November 16, 2017. He was most-recently found in Los Angeles County on April 9, 2019.

          Garnett is charged with re-entering and remaining in the United States knowingly and voluntarily without having obtained permission from the United States Attorney General or the Secretary of Homeland Security following his deportation.

          Garnett’s criminal history includes a conviction in Los Angeles Superior Court for attempted first-degree residential burglary in 2011, for which he was sentenced to two years in state prison, according to the indictment. In 2012, Garnett was convicted in Los Angeles Superior Court of first-degree residential burglary with enhancements for committing the offense while on bail and for the benefit of a street gang, the indictment alleges. He was sentenced to nine years in state prison for that offense, the indictment states.

          Currently, Garnett is incarcerated at North Kern State Prison in Delano after being convicted in July 2019 of corporal injury on a spouse, with an enhancement for personally causing great bodily injury.

          He is expected to be brought to federal court in Los Angeles to face the federal illegal re-entry charge in the coming months.

          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.

          If convicted, Garnett faces a statutory maximum sentence of 10 years in federal prison.

          U.S. Immigration and Customs Enforcement investigated this case.

          This matter is being prosecuted by Special Assistant United States Attorney Matthew C. Chan of the General Crimes Section.

          LOS ANGELES – A former Social Security Administration (SSA) employee who stole more than $176,000 in Social Security benefits designated for elderly and disabled people was sentenced today to 15 months in federal prison.

          Rowena Isabel Lokeni, 36, of Garden Grove, was sentenced by United States District Judge John F. Walter, who also ordered her to pay $176,015 in restitution to the SSA. Lokeni pleaded guilty last October to one count of wire fraud. She resigned from the SSA shortly after her arrest in this case last September.

          The SSA hired Lokeni in 2007, and she worked as a lead customer service representative in the administration’s field office in Fountain Valley. She was responsible for providing direct services to the public, including determining the nature of a visit or call, resolving problems, screening for eligibility, and explaining benefit inquiries. In that capacity, Lokeni had computer access to electronic records of SSA beneficiaries.

          From her work cubicle, between April 2017 and August 2019, Lokeni accessed the SSA computer databases and queried the records of 10 Social Security beneficiaries. Once she accessed the victims’ records, Lokeni fraudulently changed each victim’s direct deposit bank account and routing numbers to instead reflect her personal bank account’s routing and account numbers.

          Of the 10 victims whose Social Security benefits were affected by Lokeni’s fraud, eight victims were supposed to be receiving disabled adult children benefits because they were unmarried adults who had a disability that began prior to their 22nd birthday. Many of these victims have severe intellectual disabilities and were staying at adult care facilities. The ninth victim was supposed to be receiving disability insurance benefits, while the 10th victim was supposed to be receiving retirement insurance benefits.

          Lokeni has admitted to fraudulently obtaining a total of approximately $176,015 in Social Security payments.

          “[Lokeni’s] actions evinced an utter disregard for the responsibility of her position, for the hardworking Americans who pay their fair share to sustain the SSA program benefits, and for the most vulnerable members of society,” the prosecution wrote in a sentencing memorandum.

          Social Security Administration – Office of the Inspector General investigated this matter.

          This case was prosecuted by Assistant United States Attorney David H. Chao of the Major Frauds Section.

          LOS ANGELES – A Kern County man was sentenced today to 84 months in federal prison for robbing banks in Long Beach and San Luis Obispo County while he brandished what appeared to be a handgun at the victim tellers.

          Dino Tabar Trias, 45, of Bakersfield, was sentenced by United States District Judge R. Gary Klausner. Judge Klausner also ordered Trias to pay $4,001 in restitution to the victim banks. Trias pleaded guilty in September 2019 to one count of armed bank robbery.

          Trias admitted in his plea agreement that he robbed a Comerica bank branch in downtown Long Beach on January 22, 2019. During that robbery, he displayed and brandished what appeared to be a handgun and demanded that the teller hand over the bank’s money. The teller, fearing for her life, handed $1,156 in cash to Trias.

          On December 7, 2018, Trias robbed a Rabobank in Grover Beach. During the robbery, he showed a teller what appeared to be a gun in his waistband while he demanded the teller give him all of her money. The teller gave Trias $2,350 in cash.

          Trias has been in federal custody since February 2019.

          This matter was investigated by the FBI, the Long Beach Police Department, the Grover Beach Police Department, and the Bakersfield Police Department.

          This case was prosecuted by Assistant United States Attorney Matthew J. Rosenbaum of the General Crimes Section.

          LOS ANGELES – A former doctor was sentenced today to 24 months in federal prison for engaging in a multi-faceted Medicare fraud scheme, and also for illegal prescribing thousands of opioid painkillers and muscle relaxants.

          Kain Kumar, 56, of Encino, was sentenced by United States District Judge Philip S. Gutierrez. Kumar was also ordered to pay financial penalties totaling more than $1 million, consisting of $509,365 in restitution, $494,900 in asset forfeiture, and a $72,000 fine.

          Kumar pleaded guilty in April 2019 to one count of health care fraud and one count of distribution of hydrocodone. He practiced internal medicine, maintained medical offices in Palmdale, Rosamond, and Ridgecrest and surrendered his medical license last year.

          From February 2011 until May 2016, Kumar defrauded the Medicare health care benefit program by prescribing unnecessary home health services in exchange for the payment of illegal kickbacks to him from a La Verne-based home health agency called Star Home Health Resources, Inc. According to the indictment in this case, Medicare paid $4,398,599 to Star based on the illegal kickback-tainted referrals from Kumar.

          In furtherance of this scheme, Kumar caused false and fraudulent claims for reimbursement to be submitted to Medicare for Medicare beneficiaries that he did not personally examine or for patients he only briefly examined. Kumar also prescribed drugs that were not medically necessary and which were paid for by the Medicare Part D program.

          Additionally, Kumar admitted in his plea agreement that between February 2013 and January 2016, Kumar – without a legitimate medical purpose – prescribed 23,826 pills of the opioid drug hydrocodone (commonly sold under the brand name Vicodin or Norco) and 38,459 pills of the muscle-relaxer carisoprodol (sold under the brand name Soma). Kumar directed his office staff – who were not medical professionals – to issue prescriptions for these drugs to patients even though Kumar had not examined the patients. Kumar directed his office staff to sign his name on prescriptions for opioid drugs and also provided his staff with pre-signed prescriptions. In one instance, although Kumar examined a patient only once on the patient’s very first visit, and thereafter he caused prescriptions to be issued to the patient for hydrocodone and carisoprodol on a monthly basis for approximately a year and a half even though Kumar did not actually see the patient for any subsequent physician examination.

          Kumar is the fifth and final defendant sentenced in this case. Elaine C. Lat, 50, of Fontana, was Star’s chief operating officer and the case’s lead defendant. She is serving a 30-month prison sentence in this matter after pleading guilty in May 2017 to one count of conspiracy and four counts of paying illegal kickbacks. Three other defendants, including Lat’s parents, each pleaded guilty to criminal charges and were sentenced in this matter.

          This case was investigated by the FBI, the U.S. Department of Health and Human Services, Office of Inspector General, and the Drug Enforcement Administration.

          This matter was prosecuted by Assistant United States Attorneys Alexander F. Porter of the Major Frauds Section, Jonathan S. Galatzan of the Asset Forfeiture Section, and Trial Attorney Claire Yan of the Fraud Section in the Criminal Division of the U.S. Department of Justice.

A former Los Angeles-area physician was sentenced today to 24 months in prison and three years of supervised release for engaging in a multi-faceted Medicare fraud scheme and for illegally prescribing thousands of opioid painkillers and muscle relaxers.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division, Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office and Special Agent in Charge William D. Bodner of DEA’s Los Angeles Field Division made the announcement.

Kain Kumar, 56, of Palmdale, California, was sentenced by U.S. District Judge Philip Gutierrez of the Central District of California, who also ordered Kumar to pay $509,365 in restitution, $494,900 in asset forfeiture, and a $72,000 fine. Kumar pleaded guilty on April 4, 2019, to one count of health care fraud and one count of distribution of hydrocodone.

As part of his guilty plea, Kumar admitted that from February 2011 until May 2016, he defrauded the Medicare health care benefit program by prescribing unnecessary home health services in exchange for the payment of illegal kickbacks to him from a La Verne, California-based home health agency called Star Home Health Resources Inc. Kumar further admitted that in furtherance of this scheme, he submitted false and fraudulent claims for reimbursement to Medicare for Medicare beneficiaries that he did not personally examine or for patients he only briefly examined. Kumar also admittedly prescribed drugs that were not medically necessary and which were paid for by the Medicare Part D program.  

Kumar admitted that between February 2013 and January 2016, he prescribed 23,826 pills of the opioid drug hydrocodone (commonly sold under the brand names Vicodin or Norco) and 38,459 pills of the muscle-relaxer carisoprodol (sold under the brand name Soma) without a legitimate medical purpose. Kumar directed his office staff – who were not medical professionals – to issue prescriptions for these drugs to patients even though Kumar had not examined the patients, he admitted. Kumar instructed his office staff to issue prescriptions for opioid drugs by instructing his staff to sign Kumar’s name on prescriptions and by providing his staff with pre-signed prescriptions. In one instance, Kumar examined a patient only on the very first visit and thereafter on a monthly basis, for approximately a year-and-a-half, he caused prescriptions to be issued to the patient for hydrocodone and carisoprodol, even though Kumar did not actually see the patient for a subsequent physician examination.

Kumar was charged along with Errol Lat, 75, Thelma Lat, 74, Elaine Lat, 49, all of Rancho Cucamonga, California, and Corinne Chavez, 36, of Rosamond, California, in a second superseding indictment returned on July 2017. All co-defendants have pleaded guilty and have been sentenced.

This case was investigated by the FBI, HHS-OIG and the DEA. Trial Attorney Claire Yan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Alexander F. Porter of the Central District of California prosecuted the case.

The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

          SANTA ANA, California – Federal agents this morning arrested two Orange County residents on charges stemming from the slaying of a man who was shot in the head and dumped from a boat off the California coast.

          The two defendants are named in federal criminal complaints filed late Wednesday and unsealed today that allege the victim was lured onto a boat in the Dana Point Harbor on October 14 with promises of an overnight fishing trip. The victim’s body was recovered from the Pacific Ocean several miles northwest of Oceanside on October 16. The San Diego County Medical Examiner’s Office determined that he was a homicide victim who drowned after being shot and suffering blunt force trauma.

          The two defendants arrested this morning are:

• Hoang Xuan Le, also known as “Wayne,” 38, of Fountain Valley, an alleged drug trafficker, who is charged with first-degree murder; and
• Sheila Marie Ritze, 40, of San Juan Capistrano, a registered owner of the boat, who is charged with being an accessory after the fact.

          Le and Ritze are expected to make their initial appearances this afternoon in United States District Court in Santa Ana.

          “Le has confessed to a confidential human source that he took the victim out on the boat, confronted the victim about a debt owed, shot the victim, tied weights to the victim’s ankles, and sank the victim’s body in the ocean,” according to the affidavit in support of the criminal complaints.

          The affidavit describes how Le told people, including the victim’s girlfriend, that he had decided at the last minute not to go on the fishing trip. But, nine days after the body was recovered, the confidential human source (CHS) contacted a member of the victim’s family to say Le had told a different story. During a meeting several days later that was recorded by investigators, the CHS reported that Le confessed to killing the victim because the victim owed Le $30,000 to $40,000. During a second meeting, the CHS expressed a willingness to work with law enforcement.

          During a November 10 meeting at Le’s residence, the CHS, who was now working with law enforcement, purchased cocaine from Le, according to the affidavit. During this meeting, Le indicated a willingness to be a killer for hire. During subsequent meetings that were also recorded, Le sold more narcotics to the CHS, and Le again expressed a willingness to be hired as a hit man. Authorities found an AR-15-type rifle, a shotgun, and a crossbow at Le’s residence this morning.

          Ritze is linked to the murder by information showing her phone was in the location of the harbor at the times the boat left and returned, and by surveillance tapes made at Dana Point Harbor showing three individuals – believed to be Ritze, Le and the victim – when the boat is launched, but showing only Ritze and Le when the boat returned hours later.

          In addition to being one of two registered owners of the boat linked to the murder, Ritze allegedly surveyed surveillance cameras in the area around Dana Point Harbor soon after the murder and purchased a tracking device found after the murder on a vehicle belonging to the victim’s girlfriend, according to data retrieved from Ritze’s phone that is outlined in the affidavit.

          A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.

          The first-degree murder charge against Le carries potential sentences of life without parole or the death penalty. The accessory after the fact charge against Ritze carries a statutory maximum sentence of fifteen years in federal prison.

          This matter is being investigated by the FBI and the Coast Guard Investigative Service.

          This case is being prosecuted by Assistant United States Attorney Greg Scally of the Santa Ana Branch Office.

          SANTA ANA, California – A Laguna Beach lawyer was sentenced today to 18 months in federal prison for submitting dozens of fraudulent visa petitions to U.S. immigration authorities and for failing to report her illicit funds to the IRS.

          Mihae Park, 54, was sentenced by United States District Judge Josephine L. Staton, who scheduled a March 6 hearing on the amount of restitution to be paid.

          Park pleaded guilty on May 16 to a two-count information charging her with visa fraud and filing a false tax return.

          Between 2000 and 2017, Park submitted to U.S. Citizenship and Immigration Services (CIS) more than 200 immigrant and non-immigrant work visa petitions that had false information. The petitions sought visas for foreign nationals based on false claims that they were going to work in highly skilled or executive positions at various businesses, when, in reality, they would not be employed by those companies, or they worked in low-level positions for which a visa would not be available. Among other false information contained in the visa petitions, Park claimed that she was employed by the petitioners under the alias Michelle Park, stated the businesses had employees who were actually deceased or retired people, listed the same people as employees at multiple petitioners, used bogus Social Security numbers for employees of petitioners, and submitted fake tax returns for work visa petitioners.

          The charging information cited two particular examples of Park’s visa fraud that occurred in 2013, when she submitted two fictitious petitions on behalf of an Orange County educational company. The petitions were submitted for two people she claimed would work there, respectively, as a Chinese language teacher and as a music instructor. In reality, the company did not know or hire the two work visa beneficiaries, and the company did not offer classes in Chinese language or music.

          “The crux of [Park’s] fraud was that she submitted petitions on behalf of entities without their knowledge, for the benefit of individuals who were not their employees, and disclosed none of that to CIS,” prosecutors wrote in the government’s sentencing papers.

          Park also admitted filing false tax returns for the years 2009 through 2014 by failing to report receipts totaling $763,418 for this time period. As a result of her underreporting of her business income, Park admitted in her plea agreement that she owes the IRS $266,988 in unpaid federal income tax over this six-year period.

          The government seized $292,482 that Park received for the filing of fraudulent visa petitions, and also seized a 2012 Ferrari California and a 2015 Volkswagen GTI that Park purchased with the visa fraud proceeds.

          This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Citizenship and Immigration Services, and IRS Criminal Investigation.

          This case was prosecuted by Assistant United States Attorneys Lawrence E. Kole of the Santa Ana Branch Office and Brent A. Whittlesey of the Asset Forfeiture Section.

          LOS ANGELES – The Department of Justice announced today that Nassir Medical Corp. and its owner, Dr. Youram Nassir, have agreed to pay the United States and California $3,356,565 to settle False Claims Act allegations that they defrauded public health care programs by billing for oncology drugs and services that were not actually provided to patients.

          Nassir Medical Corp., which does business as Cancer Care Institute, is a hematology and oncology practice based in in the Mid-Wilshire area of the City of Los Angeles. This medical office specializes in treating cancer patients and such treatment often requires physicians to prescribe, dispense, infuse, and administer a variety of oncology drugs. Medicare and Medi-Cal reimburse physicians both for the cost of drugs themselves and for the cost of infusing and administering those drugs to patients.

          Between January 2010 and December 2013, Nassir Medical Corp. and Nassir allegedly violated the False Claims Act by submitting bogus claims to Medicare and Medi-Cal, according to this case’s settlement agreement. The defendants allegedly billed public health programs for drugs that were not actually purchased, dispensed, or administered, and for infusion services that were not actually provided. The defendants have agreed to pay $2,377,675.51 to the United States and $978,907.49 to California.

          Nassir Medical Corp. and Nassir also have entered into an integrity agreement with the United States Department of Health and Human Services, Office of Inspector General.

          This settlement resolves allegations originally brought in a lawsuit filed in 2016 by Kenneth Bryan, a retired health care consultant and administrator, under the qui tam, or whistleblower, provisions of the False Claims Act. These provisions permit private parties to sue on behalf of the government for false claims for government funds and to share in any recovery. Mr. Bryan will receive more than $475,000 from the federal government as his share of the settlement amount.

          Assistant United States Attorney Ross M. Cuff of the Civil Fraud Section represented the United States in this matter, which was investigated by agents from the United States Department of Health and Human Services, Office of Inspector General.

          The lawsuit is captioned United States, et al., ex rel. Bryan v. Nassir Medical Corp., et al., 16-cv-2289-JAK (C.D. Cal.). The claims resolved by the settlement are allegations only. There has been no determination of liability.

          LOS ANGELES – A San Gabriel Valley man was arrested today on federal criminal charges that he participated in a $23.8 million scheme to manufacture and ship counterfeit laptop computer batteries and other electronics from China to the United States, where the bogus batteries were sold to unsuspecting buyers in online marketplaces.

          Zoulin Cai, a.k.a. “Allen Cai,” 28, of La Puente, was arrested at his residence this morning on a federal grand jury indictment unsealed today. He is scheduled to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.

          The three-count indictment alleges that Cai, a Chinese national who moved to Los Angeles County in 2012, worked for Shenzhen Theseus Technology Co. Ltd., a China-based company. Theseus Technology, which was owned and operated by Cai’s relatives, manufactured counterfeit lithium-ion batteries, some of which were designed for laptop computers.

          Cai and his co-conspirators sold and shipped the counterfeit batteries to unsuspecting individual buyers via eBay and Amazon, falsely advertising them as brand-name new, genuine, original, or OEM (original equipment manufacturer) products, the indictment alleges. The batteries allegedly bore counterfeit trademarks of companies such as Apple, Dell, HP, and Toshiba, as well as counterfeit certification marks of UL, a company that tests and certifies the safety of electronic products.

          Counterfeit lithium-ion laptop batteries pose significant safety risks – including the risk of extreme heat, fire, and explosions – and the batteries that Cai and his co-conspirators allegedly shipped frequently lacked required essential internal safeguards.

          “Counterfeit goods are not manufactured with the same care as legitimate products backed by well-known companies and their highly developed intellectual property,” said First Assistant United States Attorney Tracy L. Wilkison. “The batteries involved in this case were sold to numerous unsuspecting online buyers, including one victim whose laptop started smoking and nearly caught fire after the battery was installed. Consumers need to exercise great caution when purchasing discounted items, particularly electronic goods, because these items pose very real safety risks.”

          “Counterfeit products not only attack the name and value of a known business, but, in many cases, can cause harmful, and sometimes fatal, consequences for the unsuspecting buyer,” said Mark Zito, Acting Special Agent in Charge for Homeland Security Investigations (HSI) Los Angeles. “These fakes have no place in a fair, legitimate marketplace. While we hear about consumer fraud on a daily basis during the holiday season, the public should be assured that HSI, along with our federal and state law enforcement partners – including Customs and Border Protection and the Los Angeles Police Department – is committed to targeting the unscrupulous vendors of substandard merchandise year round. They are the ones who may pay the steep price.”

          The counterfeit batteries allegedly were imported, sold, and shipped from warehouses in La Puente and the City of Industry, which Cai ran and where federal agents made undercover purchases of counterfeit laptop batteries from Cai on several occasions.

          The indictment further alleges that from 2014 through June 2019, Cai and his co-conspirators fraudulently obtained at least $23.8 million from the sale of counterfeit laptop batteries through eBay and Amazon. They laundered those funds, including more than $18 million wired directly to Chinese bank accounts in the name of Theseus Technology as well as other Chinese businesses involved in the conspiracy. Cai allegedly used his ill-gotten gains for a variety of personal expenses, including monthly payments for a Maserati sports car he leased.

          Cai is charged with conspiracy to traffic in counterfeit goods and labels, conspiracy to commit wire fraud and mail fraud, and conspiracy to engage in money laundering.

          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.

          If convicted of all charges, Cai would face a statutory maximum sentence of 50 years in federal prison.

          This matter was investigated by Homeland Security Investigations, which was assisted in this investigation by the brand-holding companies.

          This case is being prosecuted by Assistant United States Attorneys Anil J. Antony and Julia S. Choe of the Cyber and Intellectual Property Crimes Section, and Katherine Schonbachler of the Asset Forfeiture Section.

          LOS ANGELES – A Venice man was sentenced today to 39 months in federal prison for his conviction on federal charges of illegally distributing prescription opioids.

          James Wilson, 56, was sentenced by United States District Judge Terry J. Hatter Jr.

          At the conclusion of a bench trial in March, Judge Hatter found Wilson guilty of two counts of illegally distributing oxycodone. The evidence presented at trial showed that Wilson, during two different transactions in early 2016, sold a total of four prescriptions to an undercover operative working with the Drug Enforcement Administration. Each of the four prescriptions were for 120 30-milligram oxycodone pills, which is the maximum strength of the opioid sold through pharmacies.

          Wilson, who is neither a doctor nor a pharmacist, owned and operated what prosecutors called a “sham medical clinic.” The illegal prescription sales took place in the parking lot of Wilson’s clinic, where he charged $200 for each of the illegal prescriptions.

          Wilson was arrested in this case in August 2017, at which time investigators found 160 blank prescriptions in his vehicle.

          Wilson’s “scheme involved the diversion of oxycodone, a powerful and deadly opioid at the center of the nation’s opioid crisis,” prosecutors wrote in a sentencing memorandum.

          This case was investigated by the DEA and was conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).

          This matter was prosecuted by Assistant United States Attorneys Marina A. Torres and Brittney M. Harris of the International Narcotics, Money Laundering, and Racketeering Section.

          RIVERSIDE, California – A San Bernardino County man faces federal criminal charges that he masterminded a bank account “bust-out” scheme that defrauded Wells Fargo out of $2.4 million and compromised more than 900 of its accounts.

          Steven Michael Banks Hubbard Jr., a.k.a. “Marcus” and “Man,” 36, of Rialto, was charged in an 11-count federal grand jury indictment returned today. Hubbard, who was arrested on a federal criminal complaint on December 6 and remains in custody, was indicted on nine counts of bank fraud and two counts of aggravated identity theft. His arraignment is scheduled for December 26 in United States District Court in Riverside.

          The indictment alleges that, between May 2015 and July 2019, Hubbard executed his scheme to defraud by first convincing individuals to open a checking account at Wells Fargo. Once the accounts were opened, the customers gave Hubbard their debit cards, PIN codes, and their personal identifying information, the indictment alleges.

          Using a customer’s account, Hubbard allegedly would deposit an average of more than $2,000 in cash into the customer’s account via a Wells Fargo ATM. Typically the same day, Hubbard would withdraw the cash that he had deposited into the customer’s account, according to the indictment.

          Hubbard would then call Wells Fargo customer service, impersonate the bank customer, and report the debit card as being stolen; resulting in the cash withdrawal being deemed as fraudulent, according to an affidavit filed with a criminal complaint in this matter. Wells Fargo then would issue a provisional credit in the amount Hubbard claimed had been fraudulently withdrawn from the account, the affidavit states. Once Wells Fargo deposited the provisional credit into the account, Hubbard allegedly immediately withdrew that money as well. In some instances, Hubbard repeated the scheme on the same account until Wells Fargo closed the account due to fraudulent activity, according to the affidavit.

          The indictment alleges Hubbard committed specific acts of bank fraud on several occasions in December 2017, March 2019 and May 2019.

          Wells Fargo estimated the loss to the bank to be $2,433,341 and involved approximately 950 compromised accounts, according to the affidavit. Wells Fargo informed law enforcement of Hubbard’s alleged “bust-out” scheme.

          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.

          If convicted, Hubbard would face a statutory maximum sentence of 30 years in federal prison for each count of bank fraud and two years in federal prison for each count of aggravated identity theft.

          The FBI investigated this matter, with assistance from the United States Secret Service, the Rialto Police Department, and investigators from Wells Fargo.

          This case is being prosecuted by Assistant United States Attorney Jerry C. Yang of the Riverside Branch Office.

          LOS ANGELES – A tax preparer who formerly worked at the California Franchise Tax Board was sentenced today to 63 months in federal prison for defrauding the IRS out of millions of dollars by declaring bogus withholdings used to fraudulently claim substantial tax refunds.

          Cubby Wayne Williams, 64, of Alhambra, was sentenced by United States District Judge Percy Anderson, who noted Williams’s lack of remorse, saying, “The public needs to know that white-collar criminals can’t buy or plead their way out of responsibility.” Judge Anderson also ordered Williams to pay $490,289 in restitution to the United States Treasury.

          At a four-day trial in October, a federal jury found Williams guilty of 22 counts of assisting in the preparation of false tax returns for his clients and four counts of subscribing to false tax returns for himself. Williams owned and operated the Inglewood-based tax services company Williams Financial Network.

          Williams filed tax returns claiming that his clients had accrued Original Issue Discount (OID) interest income. OID is a form of interest that accrues over the life of a bond or other debt instrument, but is not payable as it accrues. Financial institutions use IRS Forms 1099-OID to report this accrued, but unpaid, income and any tax withholdings on it.

          Williams fraudulently claimed OID withholdings on 22 tax returns for his clients for the tax years 2013 through 2016, and sought hundreds of thousands in bogus tax refunds. Williams took a cut of many of these refunds often by directing the IRS to deposit a portion into a bank account under his control.

          When his clients complained that their returns had fallen under the scrutiny of federal tax officials, resulting in money being owed to the IRS, Williams told them the IRS had made a mistake and they were still entitled to their tax refunds. When the same clients informed Williams they were being audited, he assured them he would represent them before the IRS and resolve any issues, but he ultimately did little other than to submit further fraudulent documentation to the IRS.

          Between 2012 and 2019, Williams submitted 222 false client tax returns claiming approximately $5,648,809 in fabricated income tax withholdings, according to court documents.

          “[Williams] submitted these false federal income tax returns despite repeated warnings from the IRS that the returns were frivolous, and continued in his conduct even after learning that he was under criminal investigation,” prosecutors wrote in the government’s sentencing memorandum.

          IRS Criminal Investigation investigated this case.

          This matter was prosecuted by Assistant United States Attorneys James C. Hughes and Ranee A. Katzenstein of the Major Frauds Section.

          RIVERSIDE, California – Four men who used off-road vehicles to retrieve a load of methamphetamine that was smuggled into the United States on an ultralight aircraft and dropped near the Salton Sea are scheduled to make their first court appearances this afternoon on federal narcotics trafficking charges.

          The four men were arrested early Friday morning after authorities tracked the ultralight aircraft as it entered U.S. airspace and flew to the area of North Shore, a community on the edge of the Salton Sea. After the aircraft descended to a low altitude, Border Patrol agents observed two off-road utility vehicles leaving the area. Two of the men were in one vehicle and were arrested without incident; the other two were taken into custody after they fled from a marked Border Patrol vehicle and drove into the Coachella Canal.

          The four men were named in a criminal complaint filed Saturday that charges each with one count of possession with the intent to distribute methamphetamine, which carries a statutory maximum penalty of life in federal prison.

          The four defendants are Victor Bugarin-Perez, 28, of Mecca; Juan Favela-Paredez, 25, a Mexican national in the United States illegally; Juan Carlos Iturriaga-Centeno, 33, a Mexican national in the United States illegally; and his brother, Leonardo Iturriaga-Centeno, 28, of North Shore.

          According to the affidavit in support of the criminal complaint, the Border Patrol and the Air and Marine Operations Center in Riverside tracked the ultralight as it crossed the international border near Calexico. After radar surveillance indicated that the ultralight descended and then headed back to Mexico, a California Highway Patrol aircraft saw two vehicles. The two vehicles left the area and were intercepted by a marked Border Patrol vehicle. A Polaris off-road vehicle with the Iturriaga-Centeno brothers stopped, but a Can-Am vehicle with the other two men sped away. The Can-Am vehicle was driven into the Coachella Canal, and the Border Patrol rescued Bugarin-Perez and Favela-Paredez when they were unable to exit the canal.

          After the men were taken into custody, authorities recovered from the canal 26 Tupperware containers that contained a total of 184.5 pounds of methamphetamine. Two GPS devices were found in the Polaris, which authorities believe were attached to the narcotics dropped from the ultralight.

          A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.

          This investigation is being conducted by the Drug Enforcement Administration.

          This matter is being prosecuted by Assistant United States Attorney Benjamin J. Weir of the Riverside Branch Office.

          LOS ANGELES – A South Los Angeles man was sentenced today to 63 months in federal prison for robbing more than half a dozen credit unions – including two additional credit union robberies he committed while he was out on bond awaiting trial on federal bank robbery charges.

          Trayvon McNutt, 33, of the Broadway-Manchester neighborhood of South Los Angeles, was sentenced by United States District Judge André Birotte Jr., who also ordered McNutt to pay $24,930 in restitution to the victim credit unions. McNutt pleaded guilty on August 30 to six counts of bank robbery and attempted bank robbery.

          On six separate occasions between June and September 2018, McNutt walked into local credit unions, approached a teller and presented a note demanding money. Several of the notes stated, “I have a gun,” and “I am armed.” During a July 17, 2018 robbery of a California Credit Union in Carson, McNutt passed the teller a note that read, “This is a robbery. I am armed. Give me your cash or someone will get shot.”

          The victim lenders were located in Lynwood, Gardena, Carson, Torrance and Hawthorne. On two separate occasions, McNutt returned to credit unions in Gardena and Carson that he previously robbed, and he robbed them again.

          In October 2018, law enforcement arrested McNutt on a federal criminal complaint alleging bank robbery, and a federal grand jury indicted him during the following month. A search warrant executed at McNutt’s residence resulted in the seizure of bait bills, which banks use to trace bank robbers.

          While he was out on bond in this bank robbery case, McNutt – this time, unlike the previous robberies, wearing a long dreadlocks hairstyle wig – robbed two additional credit unions in Hawthorne during a five-day span in May 2019. Later that month, McNutt again was arrested and has been in federal custody since that time.

          In total, McNutt collected $24,930 in cash from the robberies, of which $2,115 was collected while he was awaiting trial.

          The FBI and the Los Angeles County Sheriff’s Department investigated this matter. The Torrance Police Department and the Gardena Police Department provided assistance to the investigation.

          This case was prosecuted by Assistant United States Attorney Lucy B. Jennings of the General Crimes Section.

          SANTA ANA, California – A federal jury this morning found seven people guilty of conspiracy and mail fraud for participating in a decades-long, multi-million dollar telemarketing scheme that targeted thousands of small businesses and charities.

          During a seven-week trial in United States District Court, the jury heard evidence that members of the conspiracy – going as far back as 1988 – bilked more than 50,000 victims by posing as their regular supplier of printer toner and selling them toner at greatly inflated prices. Over one six-year span, victims were induced to send more than $126 million to the telemarketing scammers.

          The defendants found guilty today are:

• Gilbert N. Michaels, 77, of West Los Angeles, who orchestrated the scheme, and who owned and operated IDC SERVCO, a Culver City-based business that sold toner to small businesses, charities (such as Easter Seals Disability Services and the United Way), schools, churches, city governments and other entities in the United States and Canada;
• James R. Milheiser, 53, of Huntington Beach, who owned and/or controlled Material Distribution Center, PDM Marketing, Bird Coop Industries, Inc., and Copier Products Center;
• Leah D. Johnson, 54, of Ignacio, Colorado, who owned Capital Supply Center and LJT Distribution, Inc.;
• Jonathan M. Brightman, 52, of Westlake Village, who owned Copy Com Distribution, Inc.; Independent Cartridge Supplier; and Corporate Products;
• Sharon Scandaliato Virag, 54, of West Hills, who owned XL Supply, Inc.;
• Tammi L. Williams, 44, of Chino Hills, who was the office manager at Elite Office Supply, and also worked at Specialty Business Center, Rancho Office Supply and Select Imaging Supplies; and
• Francis S. Scimeca, 54, of Woodland Hills, who owned Supply Central Distribution, Inc. and Priority Office Supply.

          Each defendant was found guilty of one count of conspiracy to commit mail fraud. Michaels also was found guilty of 10 counts of mail fraud and five counts of money laundering. Milheiser, Johnson, Brightman, and Scimeca were also found guilty of mail fraud.

          In furtherance of the scheme, the telemarketers typically posed as the regular suppliers of the victim companies and told the companies that the price of toner had increased, they had not been notified of the increase, and the victims now had a chance to purchase toner at the previous, lower price. Believing that they were dealing with their regular supplier of toner, employees at the victim companies signed order confirmation forms, which prompted defendant Michaels’ company IDC SERVCO to ship toner to victims and send invoices that demanded payment at inflated prices.

          When the victim companies realized they had been scammed, they called IDC SERVCO to complain. The victims were typically told that IDC could not cancel the order or refund money because the victims had signed order confirmation forms. IDC also failed to disclose its relationships to the telemarketing companies that had actually brokered the fraudulent deals.

          In many cases, IDC employees threatened victims with collections or legal action if they did not pay an invoice. In the cases where IDC agreed to take toner back, victims were forced to pay significant “restocking fees.”

          Most victims received toner at no extra cost as part of their printer or copier service agreements. The telemarketers knew there had not been a price increase for toner, and failed to disclose that the prices they were charged were two to ten times the regular cost of toner.

          Another aspect of the fraud was that the telemarketers failed to disclose that they were affiliated with IDC. In a series of court orders dating back to November 1988, Michaels and his companies were prohibited from making false statements – such as that they were a usual supplier of photocopier supplies or that there had been price change – and they were required to provide oversight to “independent sales companies.” Michaels violated these court orders by working with and providing financing to independent sales companies that were engaged in deceptive and fraudulent practices, despite the fact that IDC received hundreds of thousands of complaints from victims claiming they had been defrauded.

          Fourteen other defendants charged in this case previously pleaded guilty to federal criminal charges.

          United States District Judge James V. Selna has scheduled a May 29, 2020 sentencing hearing, at which time the seven defendants convicted today will face, at least, a statutory maximum sentence of 20 years in federal prison.

          The investigation into this toner fraud case was conducted by the Huntington Beach Police Department, the United States Secret Service, the FBI and the Orange County District Attorney’s Office.

          This case is being prosecuted by Assistant United States Attorneys Gregory W. Staples, Bradley E. Marrett, and Benjamin D. Lichtman of the Santa Ana Branch Office.

          SANTA ANA, California – A former Los Angeles County resident now living in Mexico faces federal criminal charges alleging he sold millions of dollars of memorabilia that contained the forged signatures of sports stars, musicians, actors, and other celebrities.

          Anthony J. Tremayne, 51, formerly of West Covina but who now lives in Tijuana, Mexico, is charged in a 19-count federal grand jury indictment unsealed today.

          Tremayne, who was arrested on a warrant at the San Ysidro border crossing, and made a court appearance today in United States District Court in San Diego.

          According to the indictment, beginning in 2010 and continuing until this month, Tremayne operated businesses – including Tremayne Enterprises and Timeless Treasures – that sold memorabilia that contained the forged signatures of celebrities and sports stars. Tremayne allegedly hired and paid other people to forge the signatures. The phony goods were sold on the Internet and were shipped via U.S. mail, FedEx, or other private or commercial interstate carriers, according to the indictment. Tremayne allegedly held out that the forged signatures were real.

          For example, in November 2013, Tremayne allegedly met with a buyer in Ladera Ranch. During that meeting, he allegedly sold for $100,000 approximately 100 memorabilia items with forged signatures, including “Star Wars” Darth Vader and Imperial storm trooper helmets that had forged signatures from actors in the movie series, as well as posters with forged signatures of actors from the “Hunger Games” and “Twilight” movie series.

          In November 2019, Tremayne allegedly shipped to an FBI undercover buyer a “Keeping Up with the Kardashians” photograph that had forged signatures of three of the television show’s personalities.

          As a result of the scheme, Tremayne and his memorabilia business sold more than $1 million in memorabilia items, according to the indictment. Tremayne has been charged with 13 counts of wire fraud, three counts of mail fraud, and three counts of aggravated identity theft.

          The indictment also alleges that Tremayne had moved to Mexico to avoid paying approximately $1.4 million in taxes that he owed to the U.S. government.

          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.

          If convicted, Tremayne would face a statutory maximum sentence of 20 years in federal prison for each fraud count and two years in federal prison for each aggravated identity theft count.

          The FBI investigated this matter.

          Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office is prosecuting this case.

          SANTA ANA, California – A San Diego woman who ran a multimillion-dollar Ponzi scheme was sentenced today to 70 months in federal prison for deceiving investors by falsely claiming their money would be used to make short-term construction loans to other investors seeking to defer capital gains taxes through “1031 like-kind exchanges.”

          Susan Margaret Werth, 58, was sentenced by United States District Judge James V. Selna, who ordered her to pay $6,290,510 in restitution to her victims.

          Werth, who pleaded guilty on May 2 to one count of wire fraud, solicited millions of dollars from victims by falsely claiming their funds would be used to provide short-term construction loans to clients who were engaged in like-kind exchanges of commercial properties. She ran the Ponzi scheme out of two San Diego-based companies, Commercial Exchange Solutions, Inc. (CES) and Exchange Solutions Company, Inc. (ESC).

          A 1031 like-kind exchange is a method of deferring the payment of capital gains taxes pursuant to section 1031 of the tax code in which a taxpayer sells an investment property and reinvests the proceeds to buy a like-kind investment property of equal or greater value.

          Werth and others working at her direction falsely promised victims that their investments were risk-free and 100 percent guaranteed by CES’s “collateral account” at Wells Fargo. She lulled her victims by creating fictitious Wells Fargo bank statements to show that CES had an account with a balance of $7.2 million, as well as fabricating emails she claimed were from an employee of Wells Fargo Asset Management. Werth also falsely told investors that her companies were investing in properties that had been evaluated by the international valuation firm of Duff & Phelps.

          In return for their short-term investments of 30 to 90 days, Werth promised victims a rate of return of at least 15 percent.

          In reality, Werth knew the representations were false and fraudulent because she operated CES and ESC as a Ponzi scheme, in which the vast majority of its incoming revenue was comprised of victim-investor funds, which defendant Werth used to repay prior victim-investors, to pay her personal expenses, to withdraw cash, to repay investors’ principal, and to make fictitious profit payments to some investors.

          The total loss resulting from Werth’s Ponzi scheme exceeded $6 million.

          “[Werth’s] conduct affected honest citizens who entrusted [her] with significant amounts of money, some, their retirement funds and savings,” the prosecution wrote in its sentencing memorandum.

          One victim lost two-thirds of his life savings to Werth and was forced – at age 72 – to seek employment in an attempt to recoup the money he lost. Another victim – a 62-year-old woman – planned to retire in the near future, but could not do so after losing more than $800,000 to Werth, according to court documents.

          In December 2018, a default judgment was entered in a Securities and Exchange Commission lawsuit against Werth in this matter.

          The FBI investigated this matter.

          This case was prosecuted by Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section.

          RIVERSIDE, California – A San Bernardino County man was arrested today on a federal criminal complaint alleging he made more than 10,000 harassing telephone calls this year to government offices and made death threats against a congressional staffer and an intern who answered the calls.

          Robert Stahlnecker, 48, of Twentynine Palms, was arrested at his residence on charges of threatening federal officers and employees, interstate communications with threat to injure a person, and anonymous telecommunications harassment. He made his initial appearance this afternoon in United States District Court in Riverside and remains in federal custody. His arraignment is scheduled for December 26.

          On August 28, Stahlnecker called a congresswoman’s office in San Mateo, California three times within a span of five minutes, according to an affidavit filed with a criminal complaint that was unsealed today. During the calls, Stahlnecker allegedly berated the intern who answered the call, using vulgar language to insult her, and finally, threatened to come to the congresswoman’s office to kill her.

          On September 26, Stahlnecker allegedly made eight telephone calls within a seven-minute span to the Washington, D.C., office of a U.S. Senator from Ohio. During the calls, Stahlnecker allegedly berated the intern who answered the call, insulted the intern by using vulgar language and finally, threatened to come to the senator’s office to kill her.

          Stahlnecker has made more than 10,000 calls to government agencies and elected officials between January and November of this year, the affidavit states.

          U.S. Capitol Police has been investigating Stahlnecker since at least 2009, opening 41 investigations into threatening or harassing telephone calls he has made involving 53 different elected officials. Stahlnecker has criminal convictions for harassment in New Jersey and making terroristic threats with intent to terrorize in Pennsylvania, according to the criminal complaint. In 2015, he was convicted in in federal court in Riverside of impeding the operations of the U.S. Department of Veterans Affairs by making thousands of telephone calls to the VA – including its suicide prevention line – but that conviction was later overturned on appeal.

          The United States Capitol Police and the Department of Veterans Affairs, Office of Inspector General investigated this case.

          This matter is being prosecuted by Assistant United States Attorney Peter Dahlquist of the Riverside Branch Office.

          LOS ANGELES – An Ontario man was arrested today for allegedly playing a key role in an international drug-trafficking organization that was responsible for shipping more than 1,000 pounds of methamphetamine across the globe.

          Jorge Gomez Torres, 66, was named in an eight-count indictment that was unsealed this afternoon when he arrived at United States District Court in downtown Los Angeles for an arraignment. The indictment charges Torres with three counts – one count of drug trafficking and two counts of money laundering. Torres pleaded not guilty to the charges. A January 28 trial date has been scheduled in this matter.

          Torres – who was also known as “the Filipino,” among other aliases – allegedly coordinated drug shipments to the Philippines, and from there methamphetamine was illegally imported into the United States. On Christmas Day in 2013, law enforcement seized approximately 84 kilograms (185 pounds) of methamphetamine from a rooster ranch Torres owned in the Philippines.

          In shipping the methamphetamine around the globe, the criminal organization employed a variety of means to conceal the contraband. Members of the conspiracy used shell companies to obtain shipping documents that were used to send drugs to countries such as the Philippines to Australia. The methamphetamine was often hidden in machinery, including an industrial asphalt roller that was recovered in Manzanillo, Mexico and computer equipment that was seized in Memphis, Tennessee.

          The indictment charges a total of 17 defendants, most of whom are fugitives believed to be in Mexico.

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

          The charge of conspiracy to distribute methamphetamine carries a statutory maximum sentence of life and a mandatory minimum of 10 years in federal prison. The money laundering offenses each carry a maximum possible sentence of 20 years in prison.

          This matter is being investigated by the DEA. This investigation is being conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).

          This case is being prosecuted by Assistant United States Attorneys Alexander B. Schwab of the Major Frauds Section and Ben Balding of the International Narcotics, Money Laundering, and Racketeering Section.

          LOS ANGELES – A Fontana woman who was part of a drug-trafficking organization that distributed carfentanil, a powerful fentanyl analogue that is sometimes used to sedate elephants and other large animals, was sentenced today to 36 months in federal prison.

          Alejandra Romero-Agredano, 50, was sentenced by United States District Judge Philip S. Gutierrez. Romero-Agredano pleaded guilty on January 7 to one count of distribution of more than 100 grams of carfentanil.

          Romero-Agredano -- along with co-defendants Jorge Martin, 28, also of Fontana, and Jose Jesus Camacho-Martinez, 33, of Downey -- participated in a drug ring that distributed nearly 26,000 carfentanil pills to undercover agents with the Drug Enforcement Administration agents over a four-month period.

          Romero-Agredano coordinated the distribution of carfentanil, which is 10,000 times more potent than morphine and 100 times more powerful than fentanyl.

          Last year, undercover agents negotiated delivery of the pills with a Mexican-based co-conspirator. Romero-Agredano, working with Camacho-Martinez and Martin, then delivered three separate shipments each containing thousands of carfentanil pills to undercover DEA agents in the Inland Empire.

          This was the first federal carfentanil distribution case charged in the Central District of California.

          The three defendants were arrested by the DEA in September 2018 pursuant to a criminal complaint. Camacho-Martinez and Martin each pleaded guilty to criminal charges in this case. Camacho-Martinez was sentenced to 70 months in federal prison, while Martin received a four-year prison sentence.

          The Drug Enforcement Administration investigated this case. The DEA received substantial assistance from the Fontana Police Department and the Ontario Police Department.

          This matter was prosecuted by Assistant United States Attorney Jerry C. Yang of the Riverside Branch Office.

The Justice Department today announced it has filed a lawsuit alleging that the City of Hesperia, California, and the San Bernardino County Sheriff’s Department in California discriminated against African American and Latino renters in violation of the Fair Housing Act.

The lawsuit filed in the U.S. District Court for the Central District of California alleges that the City, with substantial support from the Sheriff’s Department, enacted a rental ordinance with the intent of addressing what one City Councilmember called a “demographical problem” – the City’s increasing African American and Latino population – resulting in the evictions of numerous African American and Latino renters. The ordinance, which was in effect between Jan. 1, 2016 and its amendment on July 18, 2017, required all rental property owners to evict tenants upon notice by the Sheriff’s Department that the tenants had engaged in any alleged criminal activity on or near the property. The complaint further alleges that the Sheriff’s Department exercised its substantial discretion in enforcement to target African American and Latino renters and majority-minority areas of Hesperia. Although the ordinance purported to target “criminal activity,” the Sheriff’s Department notified landlords to begin evictions of entire families including children for conduct involving one tenant or even non-tenants, evictions of victims of domestic violence, and evictions based on mere allegations and without evidence of criminal activity.

“The Fair Housing Act prohibits local governments from enacting ordinances intended to push out African American and Latino renters because of their race and national origin, or from enforcing their ordinances in a discriminatory manner,” said Assistant Attorney General Eric Dreiband. “The United States Department of Justice will continue zealously to enforce the Fair Housing Act against anyone and any organization or institution that violates the law’s protections against race, national origin, and other forms of unlawful discrimination.”

“Our office is committed to defending the civil rights of everyone,” said Nick Hanna, the United States Attorney for the Central District of California. “Protecting the public is one of the most important duties of local governments and police departments, and the public entrusts them with enormous power to carry out that duty. We will not allow them to abuse that power by depriving people of their rights.”

“Individuals and families have a right to live where they choose, regardless of their race or national origin,” said Anna María Farías, Assistant Secretary for Fair Housing and Equal Opportunity at the U.S. Department of Housing and Urban Development (HUD). “HUD applauds today’s action and will continue to work with the Justice Department to address policies and practices that violate this nation’s fair housing laws.”  

The Justice Department’s lawsuit is based on an investigation and charge of discrimination by HUD, which found that African American and Latino renters were significantly more likely to be evicted under the ordinance than white renters, and that evictions disproportionately occurred in majority-minority parts of Hesperia. According to the complaint, HUD determined that African American renters were almost four times as likely as non-Hispanic white renters to be evicted because of the ordinance, and Latino renters were 29 percent more likely than non-Hispanic white renters to be evicted. Sheriff’s Department data showed that 96 percent of the people the Sheriff’s Department targeted for eviction under the ordinance in 2016 had lived in majority-minority Census blocks. HUD determined that reasonable cause existed to believe the city and county engaged in illegal discriminatory housing practices.

The lawsuit alleges that City officials enacted the ordinance to drive African American and Latino renters out of Hesperia. During city council hearings, city officials and others made numerous statements that demonstrate the City enacted the ordinance to reverse “demographic” changes in Hesperia, including focusing on purported newcomers from predominantly minority Los Angeles County. City officials expressed a desire for the ordinance to drive supposed newcomers “the hell out of our town.” The City enacted the ordinance despite civil-rights related objections to many of its provisions from various segments of the community.

The complaint alleges that, in addition to the eviction mandate, the ordinance required all rental property owners to register their properties and pay an annual fee; submit the names of all adult tenancy applicants to the Sheriff’s Department for a background screening, and use a commercially available service to conduct at their own expense a criminal background check of their tenants; and subject their rental properties to annual inspections by police. Failure to comply subjected owners to fines.

The lawsuit alleges that the Sheriff’s Department used the ordinance to target African American and Latino renters and tenants living in majority-minority areas of Hesperia. The United States’ complaint alleges that, in enforcing the ordinance, the Sheriff’s Department notified landlords to begin evictions of entire households for the conduct of a single individual, including in cases where tenants were victims of domestic violence. Those evicted included young children who were not accused of any wrongdoing.   

Fighting illegal housing discrimination is a top priority of the Justice Department. The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. More information about the Civil Rights Section, Civil Division of the United States Attorney’s Office for the Central District of California is available at https://www.justice.gov/usao-cdca/civil-division/civil-rights.

Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743 (press 1 to continue in English and select mailbox option 4; press 2 to continue in Spanish and select mailbox option 4), email the Justice Department at fairhousing@usdoj.gov, or contact HUD at 1-800-669-9777. Individuals can also file a complaint about housing discrimination or other civil rights violations with the Civil Rights Section, Civil Division of the United States Attorney’s Office by calling (213) 894-2879, emailing USACAC.CV-CivilRights@usdoj.gov, or completing and submitting this form.

          LOS ANGELES – The Justice Department today filed a lawsuit alleging that the City of Hesperia and the San Bernardino County Sheriff’s Department discriminated against African American and Latino renters in violation of the Fair Housing Act.

          The federal lawsuit alleges that the city, with substantial support from the Sheriff’s Department, enacted a rental ordinance with the intent of addressing what one city councilmember called a “demographical problem” – the city’s increasing African American and Latino population. The ordinance resulted in the evictions of numerous African American and Latino renters.

          The “Crime Free Rental Housing” ordinance, which was in effect between January 1, 2016 and its amendment on July 18, 2017, required all rental property owners to evict tenants upon notice by the Sheriff’s Department that the tenants had engaged in any alleged criminal activity on or near the property. The complaint further alleges that the Sheriff’s Department exercised its substantial discretion in enforcement to target African American and Latino renters and majority-minority areas of Hesperia. Although the ordinance purported to target “criminal activity,” the Sheriff’s Department notified landlords to begin evictions of entire families – including children – for conduct involving one tenant or even non-tenants, evictions of victims of domestic violence, and evictions based on mere allegations and without evidence of criminal activity.

          “Our office is committed to defending the civil rights of everyone,” said United States Attorney Nick Hanna. “Protecting the public is one of the most important duties of local governments and police departments, and the public entrusts them with enormous power to carry out that duty. We will not allow them to abuse that power by depriving people of their rights.”

          “The Fair Housing Act prohibits local governments from enacting ordinances intended to push out African American and Latino renters because of their race and national origin, or from enforcing their ordinances in a discriminatory manner,” said Assistant Attorney General Eric Dreiband. “The United States Department of Justice will continue zealously to enforce the Fair Housing Act against anyone and any organization or institution that violates the law’s protections against race, national origin, and other forms of unlawful discrimination.”

          “Individuals and families have a right to live where they choose, regardless of their race or national origin,” said Anna María Farías, Assistant Secretary for Fair Housing and Equal Opportunity at the U.S. Department of Housing and Urban Development (HUD). “HUD applauds today’s action and will continue to work with the Justice Department to address policies and practices that violate this nation’s fair housing laws.”

          The Justice Department’s lawsuit is based on an investigation and charge of discrimination by HUD, which found that African American and Latino renters were significantly more likely to be evicted under the ordinance than white renters, and that evictions disproportionately occurred in majority-minority parts of Hesperia. According to the complaint, HUD determined that African American renters were almost four times as likely as non-Hispanic white renters to be evicted because of the ordinance, and Latino renters were 29 percent more likely than non-Hispanic white renters to be evicted. Sheriff’s Department data showed that 96 percent of the people the Sheriff’s Department targeted for eviction under the ordinance in 2016 had lived in majority-minority Census blocks. HUD determined that reasonable cause existed to believe the city and county engaged in illegal discriminatory housing practices.

          The lawsuit alleges that city officials enacted the ordinance to drive African American and Latino renters out of Hesperia. During city council hearings, city officials and others made numerous statements that demonstrate the city enacted the ordinance to reverse “demographic” changes in Hesperia, including focusing on purported newcomers from predominantly minority Los Angeles County. City officials expressed a desire for the ordinance to drive supposed newcomers “the hell out of our town.” The city enacted the ordinance despite civil rights-related objections to many of its provisions from various segments of the community.

          This case is being litigated by the Civil Rights Section in the Civil Division of the United States Attorney’s Office and the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division.

          Fighting illegal housing discrimination is a top priority of the Justice Department. The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. More information about the Civil Rights Section in the Civil Division of the United States Attorney’s Office is available at https://www.justice.gov/usao-cdca/civil-division/civil-rights-section.

          Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743 (press 1 to continue in English and select mailbox option 4; press 2 to continue in Spanish and select mailbox option 4), email the Justice Department at fairhousing@usdoj.gov, or contact HUD at 1-800-669-9777. Individuals can also file a complaint about housing discrimination or other civil rights violations with the United States Attorney’s Office by calling (213) 894-2879, emailing USACAC.CV-CivilRights@usdoj.gov, or completing and submitting this form.

          LOS ANGELES – A Riverside County tax preparer was sentenced today to 41 months in federal prison for defrauding the IRS out of more than $2.1 million by submitting phony tax returns, including ones that maximized fraudulent refunds through child tax credits and bogus businesses for hundreds of his clients.

          Dennis L. Reed II, 31, of Hemet, was sentenced by United States District Judge Otis D. Wright II, who also ordered Reed to pay $2,158,337 in restitution to the IRS. Reed pleaded guilty on September 3 to two counts of aiding and assisting in the preparation of false income tax returns.

          Between 2014 and 2019, Reed prepared hundreds of federal and state income tax returns containing false claims designed to generate or increase fraudulent tax refunds. For example, the fraudulent tax returns falsely claimed that the taxpayers had dependents, operated a sole proprietorship, or were entitled to receive credits for certain educational expenses.

          As part of the tax fraud, Reed prepared at least 384 returns that falsely stated that the client had earned income from Schedule C sole proprietorships, which are tax forms used by the self-employed to report business profits or losses. Reed created false Schedule C businesses such as hairstylist or barber for these clients. In reality, Reed knew his clients did not work at all during the year, had not earned income, and were not required to file an income tax return.

          On at least 79 tax returns, Reed admitted he created phantom business income or losses and claimed false dependents on clients’ tax returns in order to generate tax refunds to which the clients weren’t entitled. On at least 114 tax returns, Reed falsely claimed that the clients had educational expenses that resulted in refunds to which they were not entitled.

          Though Reed prepared federal income tax returns for clients, he did not sign their returns to identify himself to the IRS as the returns’ preparer, but rather stated on the tax returns that they were “self-prepared.” Reed admitted that he charged clients between $350 and $1,350 to prepare and file income tax returns.

          The false tax returns Reed prepared resulted in a loss of $2,158,337 to the IRS.

          “The victim of [Reed’s] offense is not simply a faceless bureaucracy, but all the honest and hardworking American citizens and residents who go to work each day and pay their fair share of taxes as the law requires of them,” prosecutors wrote in their sentencing memorandum.

          IRS-Criminal Investigation investigated this matter.

          This case was prosecuted by Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section.

WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha entablado una demanda contra la Ciudad de Hesperia y el Departamento del Alguacil (Sheriff) del Condado de San Bernardino, alegando que los mismos han discriminado a inquilinos afroestadounidenses y latinos, en contra de la ley de Vivienda Justa.

La demanda, presentada ante el Tribunal de Distrito de los EE. UU. para el Distrito Central de California, alega que la Ciudad, con un apoyo importante del Departamento del Alguacil, promulgó un decreto de arrendamiento con la intención de abordar lo que un miembro del consejo municipal describió como «problema demográfico», eso es, la población afroestadounidense y latina en aumento, lo cual ocasionó el desalojo de bastantes inquilinos afroestadounidenses y latinos. El decreto, que estaba en vigor entre el 1 de enero del 2016 y el 18 de julio del 2017, fecha en la cual se enmendó, requirió a todo propietario desalojar a inquilinos al ser notificado por el Departamento del Alguacil que dichos inquilinos habían estado involucrados en alguna actividad delictiva en la propiedad o sus alrededores. Más aún, la demanda alega que el Departamento del Alguacil ejerció su discreción sustancial en la ejecución del decreto para marcar como objetivo a los inquilinos afroestadounidenses y latinos y las zonas de mayoría-minoría de Hesperia. Aunque el presunto fin del decreto era combatir «las actividades delictivas», el Departamento del Alguacil notificó a los propietarios que comenzaran a desalojar a familias enteras, incluyendo a niños, para conductas que involucraban a un solo inquilino o a alguien que ni siquiera era inquilino de la propiedad, a desalojar a víctimas de la violencia doméstica y a desalojar a personas basándose únicamente en puras alegaciones y sin pruebas de actividades delictivas.

«La ley de Vivienda Justa prohíbe que los gobiernos locales promulguen decretos cuya intención es alejar a inquilinos afroestadounidenses y latinos por motivos de su raza y origen nacional o que hagan cumplir sus decretos de una forma discriminatoria», declaró el Fiscal General Auxiliar Eric Dreiband. «El Departamento de Justicia de los Estados Unidos seguirá haciendo cumplir de manera fervorosa la ley de Vivienda Justa a cada persona y cada organización o institución que vulnere las protecciones ofrecidas en virtud de la ley contra la discriminación por motivos de raza u origen nacional y otras formas de discriminación ilícita».

«Nuestra oficina se ha comprometido a defender los derechos civiles de todos», afirmó Nick Hanna, el Fiscal Federal de los Estados Unidos para el Distrito Central de California. «La protección del público es uno de los deberes más importantes de los gobiernos locales y comisarías, y el público les encomienda tremendos poderes para realizar tal deber. No les permitiremos que abusen de esos poderes al privar a la gente de sus derechos».

«Las personas y familias tienen derecho a vivir dónde elijan, independientemente de su raza u origen nacional», dijo Anna María Farías, Secretaria Auxiliar de Vivienda Justicia e Igualdad de Oportunidades en el Departamento de la Vivienda y Desarrollo Urbano de los EE. UU. («HUD», por sus siglas en inglés). «HUD felicita la medida que se tomó hoy y seguirá colaborando con el Departamento de Justicia para abordar políticas y prácticas que vulneran las leyes de vivienda justa de esta nación».

La demanda del Departamento de Justicia se basa en una investigación y denuncia de discriminación radicada por HUD, la cual halló que era mucho más probable que inquilinos afroestadounidenses y latinos fueran desalojados en virtud del decreto que inquilinos blancos, y que los desalojos ocurrieron de manera desproporcionada en las zonas de mayoría-minoría de Hesperia. Según la demanda, HUD determinó que inquilinos afroestadounidenses tenían una probabilidad cuatro veces mayor que la de inquilinos blancos no-hispanos de ser desalojados a causa del decreto y que la probabilidad de que un inquilino latino fuera desalojado era un 29 % mayor que la de un inquilino blanco no-hispano. Los datos del Departamento del Alguacil mostraron que el 96 % de las personas que el Departamento del Alguacil identificó como objeto para el desalojo conforme al decreto durante el año 2016 habían vivido en zonas de censo de mayoría-minoría. HUD determinó que existían motivos fundados para creer que la ciudad y el condado hubieran tenido prácticas de vivienda discriminatorias.

Por otra parte, la demanda alega que funcionarios municipales promulgaron el decreto para alejar a inquilinos afroestadounidenses y latinos de Hesperia. Durante las audiencias del concejo municipal, funcionarios municipales y otros realizaron algunas declaraciones que demostraron que la Ciudad había promulgado el decreto para revertir cambios «demográficos» en Hesperia, lo que incluía enfocarse en presuntos recién-llegados de zonas de Los Ángeles que son predominantemente de minorías.

Los funcionarios municipales expresaron su deseo de que el decreto alejara a los supuestos recién-llegados «muy lejos de nuestro pueblo». La Ciudad promulgó el decreto a pesar de recibir, de varios segmentos de la comunidad, objeciones relacionadas con derechos civiles a muchas de sus disposiciones.

La demanda alega que, además del mandato de desalojo, el decreto requirió a todo propietario de vivienda de alquiler registrar sus propiedades inmuebles y pagar una cuota anual; entregar los nombres de todos los adultos que solicitaron una vivienda de alquiler al Departamento de Alguacil para que el mismo comprobara sus antecedentes y utilizar un servicio disponible en el mercado para realizar su propia verificación de antecedentes penales, los gastos de la misma tenían que sufragar el mismo propietario. De no hacerlo, los propietarios podían ser multados.

Más aún, la demanda alega que el Departamento del Alguacil usó el decreto para marcar como blanco a arrendatarios e inquilinos afroestadounidenses y latinos que vivían en zonas de mayoría-minoría de Hesperia. La demanda de los Estados Unidos alega que, al hacer cumplir el decreto, el Departamento del Alguacil avisó a los propietarios que comenzaran a desalojar al hogar entero por la conducta de un solo individuo, incluyendo en casos en los que los inquilinos eran víctimas de la violencia doméstica. Entre los desalojados había niños pequeños que no fueron acusados de ninguna infracción.

La lucha contra la discriminación ilícita en la vivienda es una de las prioridades principales del Departamento de Justicia. La ley de Vivienda Justa prohíbe la discriminación en la vivienda por motivos de raza, color de piel, religión, género, estado civil, origen nacional y discapacidad. Para más información sobre la División de Derechos Civiles y las leyes que hace cumplir, vaya a www.justice.gov/crt-espanol. Para más información sobre la Sección de Derechos Civiles, División Civil de la Fiscalía Federal para el Distrito Central de California, vaya a https://www.justice.gov/usao-cdca/civil-division/civil-rights.

Aquellos individuos que creen haber sido víctimas de discriminación en la vivienda pueden llamar al Departamento de Justicia al 1-800-896-7743 (pulse 1 para continuar en inglés y elija la opción de buzón 4; pulse 2 para continuar en español y elija la opción de buzón 4), enviar un correo electrónico al Departamento de Justicia a fairhousing@usdoj.gov o comunicarse con HUD at 1‑800-669-9777. También se puede presentar una demanda relacionada con la discriminación en la vivienda o con alguna otra vulneración de derechos civiles ante la Sección de Derechos Civiles, División Civil de la Fiscalía Federal llamando al (213) 894-2879, enviando un correo electrónico a USACAC.CV-CivilRights@usdoj.gov o completando y entregando este formulario.

          LOS ÁNGELES - El Departamento de Justicia anunció hoy que ha entablado una demanda contra la Ciudad de Hesperia y el Departamento del Alguacil (Sheriff) del Condado de San Bernardino, alegando que los mismos han discriminado a inquilinos afroestadounidenses y latinos, en contra de la ley de Vivienda Justa.

          La demanda, presentada ante el Tribunal de Distrito de los EE. UU. para el Distrito Central de California, alega que la Ciudad, con un apoyo importante del Departamento del Alguacil, promulgó un decreto de arrendamiento con la intención de abordar lo que un miembro del consejo municipal describió como "problema demográfico," eso es, la población afroestadounidense y latina en aumento, lo cual ocasionó el desalojo de bastantes inquilinos afroestadounidenses y latinos. El decreto, que estaba en vigor entre el 1 de enero del 2016 y el 18 de julio del 2017, fecha en la cual se enmendó, requirió a todo propietario desalojar a inquilinos al ser notificado por el Departamento del Alguacil que dichos inquilinos habían estado involucrados en alguna actividad delictiva en la propiedad o sus alrededores. Más aún, la demanda alega que el Departamento del Alguacil ejerció su discreción sustancial en la ejecución del decreto para marcar como objetivo a los inquilinos afroestadounidenses y latinos y las zonas de mayoría-minoría de Hesperia. Aunque el presunto fin del decreto era combatir "las actividades delictivas," el Departamento del Alguacil notificó a los propietarios que comenzaran a desalojar a familias enteras, incluyendo a niños, para conductas que involucraban a un solo inquilino o a alguien que ni siquiera era inquilino de la propiedad, a desalojar a víctimas de la violencia doméstica y a desalojar a personas basándose únicamente en puras alegaciones y sin pruebas de actividades delictivas.

          "Nuestra oficina se ha comprometido a defender los derechos civiles de todos," afirmó Nick Hanna, el Fiscal Federal de los Estados Unidos para el Distrito Central de California. "La protección del público es uno de los deberes más importantes de los gobiernos locales y comisarías, y el público les encomienda tremendos poderes para realizar tal deber. No les permitiremos que abusen de esos poderes al privar a la gente de sus derechos."

          "La ley de Vivienda Justa prohíbe que los gobiernos locales promulguen decretos cuya intención es alejar a inquilinos afroestadounidenses y latinos por motivos de su raza y origen nacional o que hagan cumplir sus decretos de una forma discriminatoria," declaró el Fiscal General Auxiliar Eric Dreiband. "El Departamento de Justicia de los Estados Unidos seguirá haciendo cumplir de manera fervorosa la ley de Vivienda Justa a cada persona y cada organización o institución que vulnere las protecciones ofrecidas en virtud de la ley contra la discriminación por motivos de raza u origen nacional y otras formas de discriminación ilícita."

          "Las personas y familias tienen derecho a vivir dónde elijan, independientemente de su raza u origen nacional," dijo Anna María Farías, Secretaria Auxiliar de Vivienda Justicia e Igualdad de Oportunidades en el Departamento de la Vivienda y Desarrollo Urbano de los EE. UU. ("HUD," por sus siglas en inglés). "HUD felicita la medida que se tomó hoy y seguirá colaborando con el Departamento de Justicia para abordar políticas y prácticas que vulneran las leyes de vivienda justa de esta nación."

          La demanda del Departamento de Justicia se basa en una investigación y denuncia de discriminación radicada por HUD, la cual halló que era mucho más probable que inquilinos afroestadounidenses y latinos fueran desalojados en virtud del decreto que inquilinos blancos, y que los desalojos ocurrieron de manera desproporcionada en las zonas de mayoría-minoría de Hesperia. Según la demanda, HUD determinó que inquilinos afroestadounidenses tenían una probabilidad cuatro veces mayor que la de inquilinos blancos no-hispanos de ser desalojados a causa del decreto y que la probabilidad de que un inquilino latino fuera desalojado era un 29 % mayor que la de un inquilino blanco no-hispano. Los datos del Departamento del Alguacil mostraron que el 96 % de las personas que el Departamento del Alguacil identificó como objeto para el desalojo conforme al decreto durante el año 2016 habían vivido en zonas de censo de mayoría-minoría. HUD determinó que existían motivos fundados para creer que la ciudad y el condado hubieran tenido prácticas de vivienda discriminatorias.

          Por otra parte, la demanda alega que funcionarios municipales promulgaron el decreto para alejar a inquilinos afroestadounidenses y latinos de Hesperia. Durante las audiencias del concejo municipal, funcionarios municipales y otros realizaron algunas declaraciones que demostraron que la Ciudad había promulgado el decreto para revertir cambios "demográficos" en Hesperia, lo que incluía enfocarse en presuntos recién-llegados de zonas de Los Ángeles que son predominantemente de minorías.

          Los funcionarios municipales expresaron su deseo de que el decreto alejara a los supuestos recién-llegados "muy lejos de nuestro pueblo." La Ciudad promulgó el decreto a pesar de recibir, de varios segmentos de la comunidad, objeciones relacionadas con derechos civiles a muchas de sus disposiciones.

          La demanda alega que, además del mandato de desalojo, el decreto requirió a todo propietario de vivienda de alquiler registrar sus propiedades inmuebles y pagar una cuota anual; entregar los nombres de todos los adultos que solicitaron una vivienda de alquiler al Departamento de Alguacil para que el mismo comprobara sus antecedentes y utilizar un servicio disponible en el mercado para realizar su propia verificación de antecedentes penales, los gastos de la misma tenían que sufragar el mismo propietario. De no hacerlo, los propietarios podían ser multados.

          Más aún, la demanda alega que el Departamento del Alguacil usó el decreto para marcar como blanco a arrendatarios e inquilinos afroestadounidenses y latinos que vivían en zonas de mayoría-minoría de Hesperia. La demanda de los Estados Unidos alega que, al hacer cumplir el decreto, el Departamento del Alguacil avisó a los propietarios que comenzaran a desalojar al hogar entero por la conducta de un solo individuo, incluyendo en casos en los que los inquilinos eran víctimas de la violencia doméstica. Entre los desalojados había niños pequeños que no fueron acusados de ninguna infracción.

          La lucha contra la discriminación ilícita en la vivienda es una de las prioridades principales del Departamento de Justicia. La ley de Vivienda Justa prohíbe la discriminación en la vivienda por motivos de raza, color de piel, religión, género, estado civil, origen nacional y discapacidad. Para más información sobre la División de Derechos Civiles y las leyes que hace cumplir, vaya a www.justice.gov/crt-espanol. Para más información sobre la Sección de Derechos Civiles, División Civil de la Fiscalía Federal para el Distrito Central de California, vaya a https://www.justice.gov/usao-cdca/civil-division/civil-rights-section.

          Aquellos individuos que creen haber sido víctimas de discriminación en la vivienda pueden llamar al Departamento de Justicia al 1-800-896-7743 (pulse 1 para continuar en inglés y elija la opción de buzón 4; pulse 2 para continuar en español y elija la opción de buzón 4, enviar un correo electrónico al Departamento de Justicia a fairhousing@usdoj.gov o comunicarse con HUD at 1‑800-669-9777. También se puede presentar una demanda relacionada con la discriminación en la vivienda o con alguna otra vulneración de derechos civiles ante la Sección de Derechos Civiles, División Civil de la Fiscalía Federal llamando al (213) 894-2879, enviando un correo electrónico a USACAC.CV-CivilRights@usdoj.gov o completando y entregando este formulario.

          LOS ÁNGELES - El Departamento de Justicia anunció hoy que ha entablado una demanda contra la Ciudad de Hesperia y el Departamento del Alguacil (Sheriff) del Condado de San Bernardino, alegando que los mismos han discriminado a inquilinos afroestadounidenses y latinos, en contra de la ley de Vivienda Justa.

          La demanda, presentada ante el Tribunal de Distrito de los EE. UU. para el Distrito Central de California, alega que la Ciudad, con un apoyo importante del Departamento del Alguacil, promulgó un decreto de arrendamiento con la intención de abordar lo que un miembro del consejo municipal describió como "problema demográfico," eso es, la población afroestadounidense y latina en aumento, lo cual ocasionó el desalojo de bastantes inquilinos afroestadounidenses y latinos. El decreto, que estaba en vigor entre el 1 de enero del 2016 y el 18 de julio del 2017, fecha en la cual se enmendó, requirió a todo propietario desalojar a inquilinos al ser notificado por el Departamento del Alguacil que dichos inquilinos habían estado involucrados en alguna actividad delictiva en la propiedad o sus alrededores. Más aún, la demanda alega que el Departamento del Alguacil ejerció su discreción sustancial en la ejecución del decreto para marcar como objetivo a los inquilinos afroestadounidenses y latinos y las zonas de mayoría-minoría de Hesperia. Aunque el presunto fin del decreto era combatir "las actividades delictivas," el Departamento del Alguacil notificó a los propietarios que comenzaran a desalojar a familias enteras, incluyendo a niños, para conductas que involucraban a un solo inquilino o a alguien que ni siquiera era inquilino de la propiedad, a desalojar a víctimas de la violencia doméstica y a desalojar a personas basándose únicamente en puras alegaciones y sin pruebas de actividades delictivas.

          "Nuestra oficina se ha comprometido a defender los derechos civiles de todos," afirmó Nick Hanna, el Fiscal Federal de los Estados Unidos para el Distrito Central de California. "La protección del público es uno de los deberes más importantes de los gobiernos locales y comisarías, y el público les encomienda tremendos poderes para realizar tal deber. No les permitiremos que abusen de esos poderes al privar a la gente de sus derechos."

          "La ley de Vivienda Justa prohíbe que los gobiernos locales promulguen decretos cuya intención es alejar a inquilinos afroestadounidenses y latinos por motivos de su raza y origen nacional o que hagan cumplir sus decretos de una forma discriminatoria," declaró el Fiscal General Auxiliar Eric Dreiband. "El Departamento de Justicia de los Estados Unidos seguirá haciendo cumplir de manera fervorosa la ley de Vivienda Justa a cada persona y cada organización o institución que vulnere las protecciones ofrecidas en virtud de la ley contra la discriminación por motivos de raza u origen nacional y otras formas de discriminación ilícita."

          "Las personas y familias tienen derecho a vivir dónde elijan, independientemente de su raza u origen nacional," dijo Anna María Farías, Secretaria Auxiliar de Vivienda Justicia e Igualdad de Oportunidades en el Departamento de la Vivienda y Desarrollo Urbano de los EE. UU. ("HUD," por sus siglas en inglés). "HUD felicita la medida que se tomó hoy y seguirá colaborando con el Departamento de Justicia para abordar políticas y prácticas que vulneran las leyes de vivienda justa de esta nación."

          La demanda del Departamento de Justicia se basa en una investigación y denuncia de discriminación radicada por HUD, la cual halló que era mucho más probable que inquilinos afroestadounidenses y latinos fueran desalojados en virtud del decreto que inquilinos blancos, y que los desalojos ocurrieron de manera desproporcionada en las zonas de mayoría-minoría de Hesperia. Según la demanda, HUD determinó que inquilinos afroestadounidenses tenían una probabilidad cuatro veces mayor que la de inquilinos blancos no-hispanos de ser desalojados a causa del decreto y que la probabilidad de que un inquilino latino fuera desalojado era un 29 % mayor que la de un inquilino blanco no-hispano. Los datos del Departamento del Alguacil mostraron que el 96 % de las personas que el Departamento del Alguacil identificó como objeto para el desalojo conforme al decreto durante el año 2016 habían vivido en zonas de censo de mayoría-minoría. HUD determinó que existían motivos fundados para creer que la ciudad y el condado hubieran tenido prácticas de vivienda discriminatorias.

          Por otra parte, la demanda alega que funcionarios municipales promulgaron el decreto para alejar a inquilinos afroestadounidenses y latinos de Hesperia. Durante las audiencias del concejo municipal, funcionarios municipales y otros realizaron algunas declaraciones que demostraron que la Ciudad había promulgado el decreto para revertir cambios "demográficos" en Hesperia, lo que incluía enfocarse en presuntos recién-llegados de zonas de Los Ángeles que son predominantemente de minorías.

          Los funcionarios municipales expresaron su deseo de que el decreto alejara a los supuestos recién-llegados "muy lejos de nuestro pueblo." La Ciudad promulgó el decreto a pesar de recibir, de varios segmentos de la comunidad, objeciones relacionadas con derechos civiles a muchas de sus disposiciones.

          La demanda alega que, además del mandato de desalojo, el decreto requirió a todo propietario de vivienda de alquiler registrar sus propiedades inmuebles y pagar una cuota anual; entregar los nombres de todos los adultos que solicitaron una vivienda de alquiler al Departamento de Alguacil para que el mismo comprobara sus antecedentes y utilizar un servicio disponible en el mercado para realizar su propia verificación de antecedentes penales, los gastos de la misma tenían que sufragar el mismo propietario. De no hacerlo, los propietarios podían ser multados.

          Más aún, la demanda alega que el Departamento del Alguacil usó el decreto para marcar como blanco a arrendatarios e inquilinos afroestadounidenses y latinos que vivían en zonas de mayoría-minoría de Hesperia. La demanda de los Estados Unidos alega que, al hacer cumplir el decreto, el Departamento del Alguacil avisó a los propietarios que comenzaran a desalojar al hogar entero por la conducta de un solo individuo, incluyendo en casos en los que los inquilinos eran víctimas de la violencia doméstica. Entre los desalojados había niños pequeños que no fueron acusados de ninguna infracción.

          La lucha contra la discriminación ilícita en la vivienda es una de las prioridades principales del Departamento de Justicia. La ley de Vivienda Justa prohíbe la discriminación en la vivienda por motivos de raza, color de piel, religión, género, estado civil, origen nacional y discapacidad. Para más información sobre la División de Derechos Civiles y las leyes que hace cumplir, vaya a www.justice.gov/crt-espanol. Para más información sobre la Sección de Derechos Civiles, División Civil de la Fiscalía Federal para el Distrito Central de California, vaya a https://www.justice.gov/usao-cdca/civil-division/civil-rights-section.

          Aquellos individuos que creen haber sido víctimas de discriminación en la vivienda pueden llamar al Departamento de Justicia al 1-800-896-7743 (pulse 1 para continuar en inglés y elija la opción de buzón 4; pulse 2 para continuar en español y elija la opción de buzón 4, enviar un correo electrónico al Departamento de Justicia a fairhousing@usdoj.gov o comunicarse con HUD at 1‑800-669-9777. También se puede presentar una demanda relacionada con la discriminación en la vivienda o con alguna otra vulneración de derechos civiles ante la Sección de Derechos Civiles, División Civil de la Fiscalía Federal llamando al (213) 894-2879, enviando un correo electrónico a USACAC.CV-CivilRights@usdoj.gov o completando y entregando este formulario.

          LOS ANGELES – A South Los Angeles man was sentenced today to 97 months in federal prison for planning, overseeing and executing two violent daytime armed robberies of United States Postal Service trucks carrying tens of thousands of dollars in cash.

          Myron Crosby, 28, of Athens, was sentenced by United States District Judge S. James Otero, who also ordered Crosby to pay $110,221 in restitution. Crosby pleaded guilty on August 19 to one count of robbery of United States property.

          On February 1, 2018, Crosby and his co-conspirators organized the armed robbery of a Postal Service truck departing the Wagner Post Office located in Los Angeles, near the city boundary with Inglewood. During the robbery, in which Crosby acted as a lookout, a white minivan blocked the USPS truck just outside the Wagner Post Office, the robber threatened the truck driver at gunpoint, and the robber stole $37,658 in cash.

          On March 1, 2018, Crosby conspired to rob the Dockweiler Post Office in the Exposition Park neighborhood of South Los Angeles. On the day of the robbery, Crosby rented a Mercedes-Benz SUV and used that vehicle to box in the USPS truck as it exited the southbound 110 Freeway at Slauson Avenue. At that time, another co-conspirator exited another vehicle, brandished a gun to control the USPS driver, and stole $72,563 in cash. In total, between the two robberies, Crosby admitted in his plea agreement that he and his co-conspirators robbed the USPS of $110,221.

          “[Crosby’s] role in these crimes was critical to their planning and execution,” prosecutors wrote in the government’s sentencing memorandum. “(He) helped organize the robberies, and then oversaw and assisted in their completion, including driving the car that was used to trap the victim driver’s truck in the March 1, 2018 robbery.”

          The victim of the March 2018 robbery suffered significant trauma because of the event and ultimately took his own life later that year.

          William Crosby IV, 33, of Inglewood, Myron Crosby’s half-brother and a former Postal Service employee, is serving an 11-year prison sentence for participating in the robberies.

          The United States Postal Inspection Service and the United States Secret Service investigated this matter. The investigation remains ongoing with respect to additional co-conspirators and additional robberies.

          The case was prosecuted by Assistant United States Attorneys Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section, and Jeffrey M. Chemerinsky of the Violent and Organized Crime Section.

          LOS ANGELES – A music producer who has worked on several Grammy Award-winning projects was sentenced today to 24 months in federal prison for fraudulently using his clients’ credit card information to purchase services for his wedding, as well as airline fares and hotel reservations for himself and his family.

          Anthony Wade Evans, a.k.a. “Devine Evans,” 45, of Porter Ranch, was sentenced by United States District Judge R. Gary Klausner, who also ordered him to pay $34,810 in restitution to American Express.

          Evans pleaded guilty in December 2018 to one count of aggravated identity theft.

          From June 2017 until March 2018, Evans unlawfully used the American Express credit card belonging to a client to book flights and pay for other travel arrangements for himself and his family members.

          The victim’s credit card – which was still active, even though it had been reported lost or stolen one year earlier – was used to rack up 146 unauthorized charges totaling approximately $37,729, according to court documents. In May 2018, this victim’s business manager called American Express and reported suspicious transactions on the client’s credit card.

          In addition, from April 2017 until August 2017, Evans unlawfully used an American Express credit card belonging to a different client. Evans, without that victim’s authorization, used the card to purchase rental services and other event-related services for his wedding. Evans illegally incurred approximately $63,063 in unauthorized charges to this card.

          The total loss in this case was $100,792.

          The United States Secret Service and the United States Postal Inspection Service investigated this matter.

          This case was prosecuted by Assistant United States Attorney Keith D. Ellison of the International Narcotics, Money Laundering and Racketeering Section.

          LOS ANGELES – A North Carolina man pleaded guilty today to federal charges of making bogus threats of shootings and bombings to schools in the United Kingdom and the United States, including numerous schools in Southern California.

          Timothy Dalton Vaughn, 21, of Winston-Salem, North Carolina, also admitted making false reports of a plane hijacking and conducting computer attacks, as well as possessing child pornography.

          Vaughn – who used online handles that include “WantedbyFeds” and “Hacker_R_US” – pleaded guilty this afternoon to possession of child pornography, conspiring to make threats and damage a computer, and computer hacking.

          Authorities have linked Vaughn to the Apophis Squad, a worldwide collective of computer hackers and swatters intent on using the Internet to cause chaos. The collective caused disruptions by making threatening phone calls, sending bogus reports of violent school attacks via email, and launching distributed denial-of-service (DDoS) attacks on websites. Vaughn and another man were named earlier this year in a grand jury indictment that alleged a series of cyber and swatting attacks in 2018, including threats of bombs and school shootings that were “designed to cause fear of imminent danger and did cause the closure of hundreds of schools on two continents on multiple occasions.”

          Vaughn specifically admitted today that he provided to his co-defendant contact information for at least 86 school districts that received emailed threats of an armed student. The threatened attacks included the imminent detonation of a bomb made with ammonium nitrate and fuel oil, bombs placed under school transportation vehicles, and the placement of explosives under school buses and on sports fields, according to Vaughn’s plea agreement.

          In a plea agreement filed in relation to today’s hearing, Vaughn admitted that in early 2018 he demanded 1.5 bitcoin (then worth approximately $20,000) from Hoonigan, a Long Beach motorsport company, to prevent denial-of-service attacks on its website. When the company refused to pay, he launched a DDoS attack that disabled hoonigan.com.

          Vaughn also admitted helping his co-defendant make a false report of a hijacking on a United Airlines plane flying from London to San Francisco.

          In relation to the child pornography count, Vaughn admitted possessing nearly 200 sexually explicit images and videos depicting children, including at least one toddler.

          As a result of his guilty pleas, Vaughn will face a statutory maximum sentence of 35 years in federal prison when he is sentenced by United States District Judge Otis D. Wright II on June 8.

          The second defendant named in the indictment – George Duke-Cohan, 20, of Hertfordshire, United Kingdom, who used online handles that included “DigitalCrimes” and “7R1D3N7” – is currently serving a prison sentence in Britain for the false report of the hijacking. Duke-Cohan is charged in the indictment with nine counts. If he were to be convicted, Duke-Cohan would face a statutory maximum sentence of 65 years in federal prison.

          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.

          This case is the result of an investigation by the FBI with assistance provided by the United States Secret Service as part of the Electronic Crimes Task Force.

          This case is being prosecuted by Assistant United States Attorney Julia S. Choe of the Cyber and Intellectual Property Crimes Section.

          LOS ANGELES – One man and two women are scheduled to be arraigned this morning on federal charges of defrauding elderly women by convincing the victims they needed financial assistance to cash purported winning lottery tickets.

          A federal grand jury indictment returned on November 12 charges a total of four defendants with conspiracy to commit wire fraud for their roles in a multi-year scheme that targeted elderly female victims, robbing them of cash and other valuables in a scheme known as the “Latin Lotto Scam.”

          The three defendants scheduled for arraignment today in United States District Court in downtown Los Angeles are:

• Luisa Camargo, 38;
• Mercedes Montanez, 68; and
• Tito Lozada, 49.

          These defendants – all Colombian nationals who reside in the Los Angeles area – were arrested in Long Beach and are being held in federal custody without bond after initially being arrested on state charges filed by the Los Angeles County District Attorney’s Office. After the United States Attorney’s Office filed a criminal complaint in late October, the three defendants in Los Angeles were transferred to federal custody on November 5.

          The fourth defendant in this case – Maria Luisa Henao, 43, who recently became a U.S. citizen – was arrested in San Diego and arrived in Los Angeles on November 18, when she was arraigned on the indictment. Henao pleaded not guilty, was ordered held without bond, and was ordered to stand trial on January 14.

          The four defendants are linked to at least 11 incidents in which an older woman was approached by a combination of the defendants who falsely claimed that one of the co-conspirators had a winning lottery ticket and needed help cashing the ticket.

          As part of the scheme outlined in court documents, the defendants pretended to call lottery officials, who actually were co-conspirators. The purported lottery officials falsely confirmed to victims that they were looking at winning lottery tickets, but the funds would be released only if a deposit or fee was paid in advance. At that point, another defendant engaged with the victim and, knowing the lottery ticket was worthless, would offer to help cash the ticket. This allegedly served to encourage victims to contribute money or jewelry for the ticket’s deposit or fee. The defendants would then drive the victims to their homes and/or to their banks so the victims could get money and other valuables.

          The defendants falsely told victims that other people agreed to contribute money to fully fund the ticket’s deposit or fee, and then dropped victims outside a random residence where the defendants falsely claimed the remainder of the funds would be delivered. At that point, the defendants would flee with the victim’s money, jewelry, and other valuables.

          The indictment specifically charges the defendants with defrauding six victims; however, the Major Theft Task Force in Los Angeles and its partners have linked the defendants to at least 11 incidents since 2017 in the Southern California communities of Long Beach, Maywood, Baldwin Park, Hawaiian Gardens, Fontana, Lakewood, San Pedro and Chula Vista. One incident allegedly took place in the Bay Area city of Vallejo.

          “This was an organized group that singled out older women for the sole purpose of ripping off these vulnerable victims with bogus promises of a big payday,” said United States Attorney Nick Hanna. “While law enforcement will do everything possible to bring criminals like this to justice, this case should serve as a reminder to potential victims and their family members that no one should ever pay an upfront fee in relation to any prize, sweepstakes or lottery.”

          “Our elderly community is often a convenient and lucrative target for con artists and, while we’ve charged some of the perpetrators in this case, we know many others are at work to take their place,” said Paul Delacourt, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Educating ourselves, as well as our aging family members and friends, is crucial so that they can take precautions and avoid victimization.”

          “It is important that we stop these financial predators, especially when they target elderly victims within the Spanish-speaking community,” said San Diego County District Attorney Summer Stephan. “I am proud of our investigators, who collaborated with local and federal law enforcement to bring down this network of thieves preying on victims in supermarket parking lots.”

          “Not in our city,” said Los Angeles Chief of Police Michel Moore. “We will collaborate with our law enforcement partners at all levels and across jurisdictions to ensure this scam targeting elderly victims comes to an end.”

          The indictment also names defendant Lozada in a separate count charging him with possessing device-making equipment, commonly known as a credit card reader/writer and used to replicate credit cards to commit fraud and identify theft.

          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.

          If convicted of conspiracy to commit wire fraud, each defendant would face a statutory maximum penalty of 20 years in federal prison.

          This case is a result of a joint and continuing investigation by the FBI’s Major Theft Task Force in Los Angeles, which is comprised of FBI agents and Los Angeles Police Department detectives. San Diego County District Attorney investigators were instrumental in identifying the defendants in this case and tying the San Diego County incident to several others in California. The Los Angeles County District Attorney’s Office provided considerable assistance during this investigation.

          This case is being prosecuted by Assistant United States Attorneys Ian Yanniello and Anna Farias-Eisner of the General Crimes Section.

          SANTA ANA, California – A spinal surgeon was sentenced today to 30 months in federal prison for participating in a long-running health care fraud scheme in which he received at least $5 million in kickbacks for performing hundreds of spinal surgeries. The overall scheme resulted in more than $580 million in fraudulent bills being submitted, mostly to California’s worker compensation system.

          Dr. Daniel Capen, 70, of Manhattan Beach, was sentenced by United States District Judge Josephine L. Staton, who also ordered Capen to forfeit $5 million to the United States and pay a $500,000 fine.

          Capen, an orthopedic surgeon specializing in spinal surgeries, pleaded guilty in August 2018 to conspiracy to commit honest services fraud, and soliciting and receiving kickbacks for health care referrals.

          The kickback scheme centered on Pacific Hospital in Long Beach, which specialized in surgeries, especially spinal and orthopedic procedures. Pacific Hospital’s owner, Michael D. Drobot, conspired with doctors, chiropractors and marketers to pay kickbacks in return for the referral of thousands of patients to Pacific Hospital for spinal surgeries and other medical services paid for primarily through the California workers’ compensation system.

          Capen received kickbacks for referring surgeries to Pacific Hospital and also for using medical hardware from a Pacific Hospital-affiliated entity during the spinal surgeries he performed. He also received kickbacks for referring medical services such as urine and drug testing to Pacific Hospital-affiliated entities.

          In total, between 1998 and 2013, Capen accounted for approximately $142 million of Pacific Hospital’s claims to insurers, on which the hospital was paid approximately $56 million. Capen admitted to receiving at least $5 million in kickbacks during the course of his crimes.

          Drobot is serving a five-year prison sentence for conspiracy and paying illegal kickbacks, and has admitted that he orchestrated a wide-ranging fraudulent kickback scheme where paid more than $50 million in bribes to doctors to steer hundreds of millions of dollars in spinal surgeries to his hospital. Drobot ultimately profited millions of dollars from the scheme. Drobot currently faces additional federal criminal charges for allegedly violating a court forfeiture order by illegally selling his luxury cars.

          Seventeen defendants have been charged in connection with the scheme, and 10 of them have been convicted, including Drobot and his son. Another doctor – Timothy James Hunt, 55, of Palos Verdes Estates – was sentenced in late September to two years in federal prison after he admitted taking illegal kickbacks.

          The investigation into the spinal surgery kickback scheme was conducted by the FBI; IRS Criminal Investigation; the California Department of Insurance; and the United States Postal Service, Office of Inspector General.

          This case is being prosecuted by Assistant United States Attorneys Joseph T. McNally of the Violent and Organized Crime Section, Scott D. Tenley of the Santa Ana Branch Office, Ashwin Janakiram of the Major Frauds Section, and Victor A. Rodgers of the Asset Forfeiture Section.

          LOS ANGELES – A former employee of a marijuana distribution warehouse was found guilty by a jury today of federal criminal charges that he conspired with a corrupt Los Angeles County Sheriff’s Department deputy to rob his former employer of $2 million dollars’ worth of marijuana and cash through an armed robbery staged to look like a legitimate law enforcement operation.

          Christopher Myung Kim, 29, of Walnut, was found guilty of conspiracy to distribute marijuana, possession with intent to distribute marijuana, conspiracy against rights, deprivation of rights under color of law, and brandishing a firearm in furtherance of a drug trafficking crime.

          According to evidence presented at his four-day trial, at approximately 3 a.m. on October 29, 2018, LASD Deputy Marc Antrim, 42, of South El Monte, and six co-conspirators, robbed a marijuana distribution warehouse in downtown Los Angeles. Antrim, who was assigned to the LASD station in Temple City, was arrested by federal authorities for his role in the robbery and agreed to cooperate with the government. Antrim, who was dressed as an armed deputy, flashed his badge and a fake search warrant to gain access to the warehouse and detain the warehouse’s security guards in a cage in the back of an LASD Ford Explorer.

          Days before the robbery, Kim had supplied Antrim with inside information about the robbery, including key details about the warehouse’s layout, operation and security. Kim also gave Antrim the warehouse’s blueprints, noting where security guards likely would be stationed and which rooms Antrim and their co-conspirators should “hit” to ensure that the most valuable items were stolen.

          During the two-hour robbery, Antrim and the fake law enforcement team absconded with more than 1,200 pounds of marijuana, two large commercial safes containing more than $600,000 in cash and money orders, and other items of value from the warehouse.

          Hours after the robbery, Antrim drove a rental truck to a storage facility in Walnut, where Kim had rented a storage unit the day of the robbery. Antrim and co-conspirator Kevin McBride, 44, of Glendora, delivered $1.5 million dollars’ worth of stolen marijuana and marijuana products to Kim to resell for profit. The next day, Kim and others unloaded the stolen marijuana from the storage unit into Kim’s white Lexus RX, a Subaru SUV, and a U-Haul moving truck.

          Kim had worked at the warehouse for years, but a dispute with its owners left him “bitterly disgruntled,” according to court documents. Evidence admitted at trial, including Kim’s social media communications, showed that Kim left his job just weeks before the robbery and conspired with Antrim to orchestrate the raid both for profit and to get revenge against his own bosses.

          Antrim, who was arrested on November 8, 2018 on a federal criminal complaint, pleaded guilty on March 4 to multiple felonies in connection with the armed robbery. His sentencing is scheduled for March 16. Five other defendants, including McBride, also have pleaded guilty for their involvement in the robbery and will be sentenced early next year.

          United States District Judge Virginia A. Phillips scheduled a February 10 sentencing hearing, at which time Kim will face a statutory maximum sentence of life in federal prison and a mandatory minimum sentence of 12 years in prison.

          The jury acquitted Kim of possession with intent to distribute cocaine and possessing a firearm in furtherance of a drug trafficking crime.

          This case was investigated by the Drug Enforcement Administration, the FBI, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. LASD’s Internal Criminal Investigations Bureau provided substantial assistance to the federal investigation.

          This matter is being prosecuted by Assistant United States Attorneys Lindsey Greer Dotson of the Public Corruption and Civil Rights Section and Joseph D. Axelrad of the Violent and Organized Crime Section.

          LOS ANGELES – A former executive at StyleHaul Inc., a digital marketing company that represents “influencers” on Instagram and YouTube, pleaded guilty today to federal criminal charges for embezzling more than $22 million from his employer and then using the stolen money for personal expenses and crypto-currency gambling.

          Dennis Blieden, 30, formerly of Santa Monica and now a resident of Cincinnati, pleaded guilty to one count of wire fraud and one count of aggravated identity theft.

          According to his plea agreement, between October 2015 and March 2019, Blieden was the controller and vice president of accounting and finance for StyleHaul, a digital company once based in Hollywood, but which relocated to London earlier this year.

          As part of his job, Blieden had control over the company’s bank accounts, and he abused this authority to wire company money to his personal bank account, according to a plea agreement. Blieden then used the stolen money to pay for personal expenses and to fund his crypto-currency accounts.

          To conceal his scheme, Blieden made fraudulent entries in StyleHaul’s accounting records, falsely representing that the illegal wire transfers he made were authorized payments of money due to StyleHaul clients. Blieden also falsely indicated on one of StyleHaul’s bank accounts that wire transfers to Blieden’s personal bank account were “equity” draws that the company owed him, according to court documents. Furthermore, Blieden created fictitious wire transfer letters that purported to be from Western Union and were designed to make it appear that he had caused wire transfers from StyleHaul to pay money it purportedly owed to a client, the plea agreement states.

          Blieden also disguised his fraud by creating a fictitious lease in May 2018 for the rental of a condominium in Rosarito Beach, Mexico, which bore a forged signature of a StyleHaul executive, according to the plea agreement. Blieden admitted that he illicitly transferred $230,000 of StyleHaul’s funds by falsely representing that the condominium was being rented for business purposes for StyleHaul’s clients and employees. This conduct forms the basis of the aggravated identity theft charge.

          Blieden, who has entered and won professional poker tournaments, also frequently engaged in online gambling with crypto-currency he purchased with embezzled money, according to court documents. During the course of the alleged scheme, Blieden used money he stole from his employer to write $1,204,000 in personal checks to poker players, $1,134,956 was used to pay off his credit cards, and $8,473,734 was transferred to Blieden’s crypto-currency accounts, according to court documents.

          On February 21 and 22, shortly before his dismissal from StyleHaul, Blieden entered into two poker tournaments, wherein the buy-in amounts were $52,000 and $103,000, respectively, court papers state.

          United States District Judge André Birotte Jr. scheduled a March 20 sentencing hearing, at which time Blieden will face a statutory maximum sentence of 22 years in federal prison.

          The FBI investigated this case.

          This matter is being prosecuted by Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section.

          LOS ANGELES – Monsanto Company has agreed to plead guilty to illegally using a banned pesticide known as Penncap-M on research crops at one of its facilities on the Hawaiian island of Maui.

          In court documents filed today in United States District Court in Honolulu, Monsanto agreed to plead guilty to a misdemeanor offense of unlawfully spraying a banned pesticide – specifically methyl parathion, the active ingredient in Penncap-M –which the company used on corn seed and research crops at its Valley Farm facility in Kihei, Hawaii in 2014.

          Monsanto admitted in the court documents that it used Penncap-M, even though the company knew its use was prohibited after 2013 pursuant to a “cancellation order” issued by the Environmental Protection Agency. The company further admitted that, after the 2014 spraying, it told employees to re-enter the sprayed fields seven days later – even though Monsanto knew that workers should have been prohibited from entering the area for 31 days.

          The documents filed today also include a deferred prosecution agreement related to two felony counts of unlawfully storing an acute hazardous waste. Pursuant to the agreement, Monsanto will pay $10 million – a $6 million criminal fine and $4 million in community service payments to Hawaiian government entities. The government agreed to dismiss the felony charges in two years if Monsanto abides by the agreement, which includes paying a total of $10.2 million, successfully completing a two-year period of compliance with the agreement’s terms, and maintaining a comprehensive environmental compliance program at all of its facilities in Hawaii to ensure compliance with all federal environmental laws.

          “The illegal conduct in this case posed a threat to the environment, surrounding communities and Monsanto workers,” said United States Attorney Nick Hanna. “Federal laws and regulations impose a clear duty on every user of regulated and dangerous chemicals to ensure the products are safely stored, transported and used.”

          In a statement of facts filed in court today, Monsanto admitted that it knowingly used, transported and stored Penncap-M in violation of federal law. The pesticide “had to be managed as an acute hazardous waste in compliance with the Resource Conservation and Recovery Act (RCRA),” which prohibited the storage or transportation of the pesticide without a permit after 2013.

          From March 2013 through August 2014, even though the pesticide was on the company’s lists of chemicals that needed disposal, Monsanto stored 160 pounds of Penncap-M hazardous waste at its Molokai facility, which under RCRA made Monsanto a “Large Quantity Generator” of hazardous waste.

          In addition to spraying the banned pesticide at one of its three facilities on Maui, Monsanto also stored a total of 111 gallons of Penncap-M at Valley Farm and sites known as Maalaea and Piilani. Just like on Molokai, the storage of Penncap-M at the three Maui sites made Monsanto a “Large Quantity Generator” of acute hazardous waste at the three locations, according to court documents. Furthermore, when it transported Penncap-M to its Valley Farm site in 2014, the company violated federal law when it failed to use a proper shipping manifest to identify the hazardous material and when it failed to obtain a permit to accept hazardous waste at that site.

          “To protect human health and the environment, pesticides must be properly applied and stored,” said Special Agent-in-Charge Jay M. Green of EPA’s criminal enforcement program in Hawaii. “EPA will continue to work in close partnership with our state and local counterparts to bring cases against those who knowingly threaten the health and safety of Hawaiian communities.”

          In addition to $6 million criminal fine, Monsanto has agreed to make a total of $4 million in community service payments. The five Hawaiian agencies that each will receive $800,000 are: the Hawaii Department of Agriculture, to create and fund a Pesticide Disposal Program and for training and education purposes; the Hawaii Department of Land and Natural Resources, Maui Division of Aquatic Resources, for use in its marine programs; the Hawaii Department of Health, Hazardous Waste Branch, for use in its training and education programs; the Hawaii Department of Health, Environmental Management Division, for water quality monitoring, water quality improvements, and training and education purposes; and the Kahoolawe Island Reserve Commission, for use in the clean-up of the island of Kahoolawe.

          In relation to the criminal count Monsanto to which has agreed to plead guilty, the company has agreed to be on probation for two years and to pay the maximum possible fine of $200,000.

          This case is the result of an investigation by the U.S. Environmental Protection Agency, Criminal Investigation Division.

          This matter is being prosecuted by Mark A. Williams and Dennis Mitchell, who are special attorneys appointed by the Attorney General pursuant to 28 USC § 515. The United States Attorney’s Office for the District of Hawaii was recused from this investigation.

          LOS ANGELES – A Gardena man was found guilty by a jury today of federal criminal charges that he attempted to smuggle live corals that are protected by an international treaty known as the Convention on the International Trade of Endangered Species of Wild Fauna and Flora (CITES).

          Jose Torres, 44, was found guilty of one count of attempting to illegally export wildlife, and two counts of making and submitting a false record for wildlife intended to be exported.

          According to the evidence presented at his three-day trial, in January 2013, a Mexican company named Gabriela Herlinda Medina asked to purchase fish and coral from Torres, who identified himself as the owner of the company Orca International. Medina decided that it did not want to wait for the CITES permits and requested that the coral be shipped immediately. On January 31, 2013, Torres attempted to ship the coral without the CITES permit. Reef-building coral are protected under CITES because of their importance to ocean ecosystems and their vulnerability.

          In furtherance of his scheme, Torres visited the U.S. Fish and Wildlife Service district office in Torrance on January 31, 2013. During that visit, Torres made a false declaration that he was shipping 16 cartons of fish. In reality, Torres personally packed 40 boxes for shipment and he knew they contained protected coral.

          That night, Torres went to Los Angeles International Airport and provided to AeroMexico the false paperwork and 40 cartons to be transported to Mexico. Fish and Wildlife Service officials inspected the cartons and seized 474 undeclared items, including many CITES-protected coral.

          United States District Judge Otis D. Wright II has scheduled a February 10 sentencing hearing, at which time Torres will face a statutory maximum sentence of 20 years in federal prison.

          United States Fish and Wildlife Service investigated this case, which was charged as part of Operation Jungle Book, a law enforcement initiative that targeted wildlife smuggling.

          This matter is being prosecuted by Assistant United States Attorneys Erik M. Silber of the Environmental and Community Safety Crimes Section and David R. Friedman of the General Crimes Section.

          LOS ANGELES – A former executive at Hawthorne-based semiconductor company OSI Systems Inc. was indicted today on charges of using inside information to “short” his employer’s stock and, later, to illegally purchase shares of a company OSI confidentially had targeted for acquisition, in a scheme that allegedly netted a total of more than $567,000 in illicit gains.

          Mark A. Loman, 58, of Hermosa Beach, was named in a federal grand jury indictment that charges him with five counts of securities fraud and five counts of insider trading. Loman is scheduled to be arraigned on the indictment on December 10 in United States District Court in downtown Los Angeles.

          Loman was OSI’s vice president of finance and corporate controller from 2006 until 2017. In these roles, Loman had advance knowledge of OSI’s revenue and earnings and, as controller, was responsible for compiling and internally reporting the company’s confidential financial results.

          The indictment alleges that, in October 2015, Loman received confidential information that OSI and its subsidiaries were financially underperforming and would fall far short of their earnings and revenue forecast for its second quarter of fiscal year 2016. Acting on this information in November and December of 2015, Loman shorted 3,000 shares of OSI stock with the intent of profiting when OSI’s share price declined, according to the indictment. During this time, Loman also allegedly purchased a series of option contracts with the intention of profiting when OSI’s stock price fell.

          On January 27, 2016, OSI announced its disappointing second-quarter earnings, and also lowered its sales and earnings guidance for the remainder of its fiscal year. On the day of this announcement, OSI shares plunged 35 percent in value from their previous closing day price. As a result, Loman allegedly gained $446,436 in illegal profits from this scheme.

          The indictment further alleges that in February and March of 2016, Loman misused nonpublic information by purchasing stock of American Science & Engineering Inc., a Billerica, Massachusetts-based manufacturer of X-ray equipment that OSI had targeted for acquisition. Once OSI publicly announced in June 2016 its agreement to acquire ASEI, Loman immediately sold his ASEI shares and made approximately $120,900 in illegal gains, the indictment alleges. In September 2016, OSI formally acquired ASEI for $269 million.

          In total, Loman made $567,335 in illicit gains through this scheme, according to the indictment.

          In July 2019, the Securities and Exchange Commission filed a lawsuit against Loman, charging him with insider trading.

          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.

          Each charge of securities fraud carries a statutory maximum sentence of 25 years in federal prison. The statutory maximum sentence for each count of insider trading is 20 years in federal prison.

          The FBI investigated this matter.

          This case is being prosecuted by Assistant United States Attorneys Ashwin Janakiram and Alexander C.K. Wyman of the Major Frauds Section.

          LOS ANGELES – Two Gardena Police officers were found guilty by a jury today of federal criminal charges for scheming to purchase “off-roster” firearms not available to the general public and then illegally reselling the firearms for profit.

          Carlos Miguel Fernandez, 44, of Norwalk, and Edward Yasushiro Arao, 49, of Eastvale, were found guilty of conspiracy to engage in the business of dealing firearms without a license and of substantive counts of engaging in an unlicensed firearms business. Fernandez also was convicted of an additional conspiracy count, selling firearms to a convicted felon, and of making false statements about the sales on federal firearms licensing paperwork.  

          According to evidence presented at their six-day trial, Fernandez, whose Instagram handle was “the38superman,” advertised firearms for sale – guns being offered by both himself, Arao and others – on his Instagram account. The vast majority of posts on the account contained images of firearms. Arao, who was the CEO of Ronin Tactical Group, which was a federal firearms licensee (FFL), similarly advertised off-roster guns on the company’s Instagram account that he then re-sold in his individual capacity. Additionally, both defendants marketed firearms at gun shows. Neither defendant was licensed individually to engage in the business of dealing in firearms when the illegal gun sales alleged in the indictment took place.

          The evidence presented at trial demonstrated how the defendants exploited their position as police officers to ensure the success of their illegal gun selling business. Specifically, Fernandez purchased “off-roster” firearms – mostly Colt .38-caliber handguns that were not available to the general public, but which could be legally purchased by law enforcement officers – and sold dozens of these weapons through private-party transfers. Similarly, Arao obtained “off-roster” weapons by transferring them to himself individually from the inventory of Ronin Tactical Group. Through messages on Instagram and other means, Fernandez and Arao negotiated the prices and terms of firearm sales, and they accepted payment for the guns once they were delivered.

          For example, between May 2016 and December 2017, Fernandez negotiated and arranged the sale of 10 firearms to a convicted felon, Oscar Maravilla Camacho Jr., 36, of Salinas. With respect to every sale, Fernandez communicated directly with Camacho Jr. about the firearms purchases and understood that Camacho Jr., as a felon, could not legally buy the weapons. Nevertheless, Fernandez transferred the weapons to Camacho Jr. in violation of federal law.

          United States District Judge S. James Otero scheduled a March 2 sentencing hearing, at which time Fernandez will face a statutory maximum of 35 years in federal prison and Arao will face a statutory maximum sentence of 10 years in federal prison.

          Six other defendants in this case have pleaded guilty to federal criminal charges for distribution of cocaine, conspiracy to dispose of firearms to a felon, and making false statements that led to the straw purchase of several firearms.

          The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case. The Gardena Police Department provided its full cooperation during the investigation.

          This case is being prosecuted by Assistant United States Attorneys Katherine A. Rykken of the Major Frauds Section and Veronica Dragalin of the Public Corruption and Civil Rights Section.

          LOS ANGELES – A resident of the Central Valley town of Orosi was arrested this morning on federal charges related to skin care creams containing dangerous levels of mercury that she sold through advertisements on Facebook with promises that the illegal products could lighten skin color, remove age spots and treat acne.

          Maria Estela Esparza Magallanes, 30, who allegedly smuggled the creams into the United States from Mexico and marketed the products under the names Crema Esparza and Crema Jimena, was arrested pursuant to a three-count criminal complaint filed on November 13 in United States District Court in Los Angeles. Magallanes is expected to make her first court appearance this afternoon in federal court in Fresno.

          The complaint, which is the result of an investigation by special agents with the United States Food and Drug Administration, Office of Criminal Investigations (FDA-OCI), charges Magallanes with selling adulterated and misbranded skin care products and smuggling the unapproved creams into the United States.

          The affidavit in support of the complaint details how Magallanes sold the smuggled products to two specific victims and an undercover FDA-OCI agent with promises that the creams would treat various skin conditions and would lighten skin color. The Facebook page she used to market the products contained purported testimonials from customers and included before-and-after photos. According to the affidavit, Magallanes sold the creams to the two victims in hand-to-hand transactions in parking lots in Tulare County, and she used the United States Postal Service to ship products on several occasions to the undercover agent.

          During online communications with one of the victims and the undercover agent, Magallanes said she guaranteed her “natural” products – one of which she claimed contained standard cosmetics ingredients, including lanolin, rose water and bee pollen, and one of which purportedly was made of “stem cells,” the affidavit states. Magallanes allegedly told one victim that the products did not contain mercury and were sold pursuant to a license issued by California.

          However, the creams allegedly sold by Magallanes to one of the victims and the undercover agent contained dangerous levels of mercury. The second victim was tested, which revealed mercury in her system.

          In fact, according to the affidavit, a doctor with the U.S. Food and Drug Administration, who tested the products sent to the undercover agent, concluded: “The amounts of mercury in these products are very high. There is risk to the user, especially with chronic use, and there is risk to those around/in the user, especially infants and children and unborn babies. It is important to note that infants and children who are held by or rub up against a mother using these products can get it on their skin. The mercury will also evaporate from the product and be inhaled by the user and those around her.”

          “This defendant allegedly marketed her illegal products on Facebook, intentionally misleading customers with false claims that the products were legal and safe to use,” said United States Attorney Nick Hanna. “These dangerous creams, which were marketed to women in immigrant communities, jeopardized the safety of women and children across California and in several other states.”

          “Selling products with toxic levels of ingredients with unproven claims to treat medical conditions can put users’ health at serious risk,” said Lisa L. Malinowski, Special Agent in Charge, FDA Office of Criminal Investigations, Los Angeles Field Office. “The FDA will continue to investigate and bring to justice those who put profits above the public’s health and safety.”

          The FDA has issued cautionary statements about skin lightener and anti-aging treatments being contaminated with mercury. 

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

          If she were to be convicted of all three counts in the complaint, Magallanes would face a statutory maximum penalty of 26 years in federal prison.

          The investigation in this case is being conducted by FDA-OCI.

          The California Department of Public Health (CDPH) has published a wide array of information about mercury-tainted face creams. In the wake of at least one serious injury resulting from mercury poisoning, the CDPH is actively involved in outreach effort to provide educational materials, health information, and community-based resources to support women who may have used mercury face creams and their children who may have been exposed via skin-to-skin contact.

          This matter is being prosecuted by Assistant United States Attorney Amanda M. Bettinelli of the Environmental and Community Safety Crimes Section.

          LOS ANGELES – A Los Angeles man and his long-time girlfriend were sentenced today to federal prison terms for collecting and storing extortionate “taxes” for the man’s brother, an imprisoned Mexican Mafia member, and for acting as the brother’s eyes and ears on the street, delivering coded messages to him, including one message that resulted in an individual being marked for death.

          Thomas Gonzales, 61, and Gloria Valerio, 66, both of the Elysian Valley neighborhood of Los Angeles, were sentenced today by United States District Judge Philip S. Gutierrez. Gonzales was sentenced to 66 months in federal prison. Valerio was sentenced to 60 months in federal prison. Both defendants were immediately remanded into custody.

          After a two-week trial, Gonzales and Valerio were found guilty by a jury on March 4 of conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO). Gonzales also was found guilty of making a false statement to a law enforcement officer.

          Gonzales and Valerio were named in a 2015 federal RICO indictment that charged 22 defendants and outlined how Gonzales’s brother, Mexican Mafia member and senior Frogtown gang member Arnold “Arnie” Gonzales, 59, had ordered the unification of the traditional rival Los Angeles street gangs of Frogtown, Toonerville, and Rascals.

          The inter-gang alliance began in 2010 and resulted in the three gangs controlling the narcotics trade and other illegal activities in an area along the Los Angeles River that ran from Elysian Park nearly to Burbank. Through violence and threats of violence, senior members collected money, or “taxes,” from legitimate and illegal businesses in the area for Arnie Gonzales’s benefit.

          Gonzales and Valerio acted as “secretaries,” or people who act as the bridge between imprisoned members of the Mexican Mafia prison gang and the gang members on the street. “Secretaries” often are not gang members themselves and have normal jobs and minimal criminal histories, which is why the Mexican Mafia targets them to be used as intermediaries, as they are able to make prison visits to Mexican Mafia members without arousing suspicion. In this case, Valerio worked as an insurance analyst and Thomas Gonzales was an HVAC technician.

          Valerio and Thomas Gonzales visited Arnie Gonzales, who was serving a life sentence at Pelican Bay State Prison for a murder conviction. As Arnie Gonzales’s eyes and ears on the streets, Thomas Gonzales and Valerio stored the extortionate “tax” money gang leaders had collected from street gangs in Arnie Gonzales’s name within the territories controlled by him. Valerio deposited some of that money into Arnie Gonzales’s prison account. A search warrant executed at the defendants’ residence in June 2015 resulted in the seizure of more than $22,000 in cash.

          Gonzales and Valerio used coded language to inform Arnie Gonzales about an individual who was falsely claiming to have the authority to collect “taxes” on Arnie Gonzales’s behalf. That individual later was marked for death.

          A total of 21 people have been convicted in this case.

          This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the California Department of Corrections and Rehabilitation - Special Service Unit; the Glendale Police Department; and the Los Angeles Police Department. This investigation was conducted with the support of the Organized Crime Drug Enforcement Task Force (OCDETF).

          This case is being prosecuted by Assistant United States Attorneys Carol Alexis Chen, chief of the International Narcotics, Money Laundering, and Racketeering Section, and Alexander B. Schwab of the Major Frauds Section.

          LOS ANGELES – A member of the Pueblo Bishop Bloods street gang was sentenced today to life -- plus an additional 10 years -- in federal prison for racketeering offenses that included the murder of a man in front of the victim’s 2-year-old son.

          Rondale Young, a.k.a. “Pueblo Grump,” 37, of South Los Angeles, was sentenced today by United States District Judge S. James Otero.

          In May, after a 10-day trial, a federal jury found Young guilty of conspiring to violate the Racketeer Influenced and Corrupt Organizations Act (RICO) in relation to the August 2, 2009 murder of Francisco Cornelio. Mr. Cornelio was a 23-year-old man with no gang affiliation and was shot to death at point-blank range while vacuuming his car in front of his toddler son.

          The jury also found Young guilty of conspiracy to commit a violent crime in aid of racketeering (VICAR); VICAR murder; and possessing, using and discharging a firearm resulting in death in relation to a crime of violence.

          On the day of Mr. Cornelio’s murder, Young, accompanied by other armed gang members, drove his mother’s black Chrysler 300 car into rival gang territory, seeking retaliation for a fatal drive-by shooting of a Pueblo Bishop Bloods gang member. Mr. Cornelio was targeted simply because he was Latino and was in rival gang territory.

          “The seriousness of (Young’s) offense is among the most egregious in the federal code, among the few punishable by death,” prosecutors wrote in the government’s sentencing memorandum. “The ultimate consequences of the murder...included to: rob a young wife of her husband; rob a young son of his father and of his childhood; and to further inflame racial and gang tensions in combustible South Los Angeles, thereby putting the entire community at risk.”

          Local authorities originally charged Young in 2009 with killing Mr. Cornelio, but he was acquitted by a state jury.

          An August 2010 indictment charged Young and 44 other members and associates of the gang with being members of a criminal enterprise that engaged in drug dealing, firearms trafficking, murder, witness intimidation and armed robbery as part of the gang’s efforts to control and terrorize the Pueblo del Rio Housing Projects in South Los Angeles.

          In 2013, Young was convicted of racketeering charges in connection to the indictment and Mr. Cornelio’s murder and was sentenced to life in federal prison. That conviction was vacated in 2017 by the U.S. Court of Appeals for the Ninth Circuit, which cited evidentiary errors during the first trial. The case was sent back to the district court for a retrial. Young has been in federal custody since the 2010 indictment.

          With Young’s conviction, all 45 defendants charged in this matter have been convicted of federal RICO and related charges, and have been held responsible for multiple murders.

          This matter was investigated by the FBI; the Los Angeles Police Department; the United States Department of Housing and Urban Development, Office of Inspector General; the California Department of Corrections and Rehabilitation; and the Los Angeles County District Attorney’s Office.

          This case was prosecuted by Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section; Assistant United States Attorney Frances S. Lewis of the Public Corruption and Civil Rights Section; and Assistant United States Attorney Julia S. Choe of the Cyber and Intellectual Property Crimes Section.

          LOS ANGELES – A former nanny was sentenced today to 360 months in federal prison for producing child pornography with at least five children – most of whom were eight and nine years old – who had been placed under his care.

          Travis Elconin, 35, of Burbank, was sentenced today by United States District Judge Terry J. Hatter Jr., who also placed Elconin on supervised release for the rest of his life after he completes serving his prison sentence. Elconin pleaded guilty on March 18 to a two-count criminal information charging him with production of child pornography.

          Elconin used his position as a nanny to exploit and abuse the children in his care, holding himself out as the “perfect caretaker,” which induced numerous families – including his friends – to hire him, according to court documents. Elconin placed advertisements on websites, one of which stated, “I know how important it is as a parent to know that your children are safe when you’re not around. That would by my top priority.”

          Between August 2016 and November 2018, Elconin ingratiated himself with several families, only to sexually abuse their minor children and make sexually explicit videos of his crimes with his iPhone 8. In his plea agreement, Elconin admitted to producing child pornography with four children placed under his care. Since his arrest on January 9, the government has identified eight victims directly connected to him.

          In November 2018, German law enforcement contacted the FBI about Elconin, who had exchanged more than 10,000 messages via encrypted chatting programs and the dark web over the previous two years with suspected child sex abusers in Germany. Those messages discussed child sex abuse and the exchange of such images. The FBI also obtained warrants and searched his digital devices.

          This matter was investigated by the FBI. Germany’s Bundeskriminalamt (BKA) Police and the Santa Barbara County Sheriff’s Office provided assistance in this matter.

          This case was prosecuted by Assistant United States Attorney Devon A. Myers of the Cyber and Intellectual Property Crimes Section.

          LOS ANGELES – A West Hollywood man has been sentenced to 110 months in federal prison for defrauding investors, lenders, friends and family members out of approximately $6.7 million, including via a series of scams he ran while out on bond after pleading guilty in a prior federal case.

          Jeffrey Craig Yohai, 37, was sentenced late Friday by United States District Judge André Birotte Jr., who, when describing Yohai, said, “This is an individual who has an evil mind.” Judge Birotte also ordered Yohai to pay $6.7 million in restitution to his victims.

          Yohai pleaded guilty to two counts of conspiracy to commit wire fraud, stemming from two separate cases.

          The first case, which resulted in a guilty plea in February 2018, involved more than $6 million in real estate loans and investments that supposedly would be used to purchase and rehabilitate properties in the Hollywood Hills and New York City. Yohai defaulted on the loans and the properties went into foreclosure – which Yohai tried to delay with bankruptcy filings.

          While free on bond and awaiting sentencing in the first federal case, Yohai committed additional crimes. The second case, which resulted in a guilty plea in June 2019, involved a loan fraud scheme related to two of the properties at issue in the original federal case. Here, Yohai submitted a loan request that contained inflated appraisals. He also attempted to defraud another lender as he attempted to refinance the two properties, and Yohai contacted yet another lender with dramatically inflated appraisals to obtain refinancing – an effort that was rebuffed when that third lender learned of Yohai’s guilty plea earlier this year.

          Also in the second case, Yohai defrauded the owner of a rental property and attempted to lull the owner by showing him a $60,000 check he falsely claimed had been remitted from his ex-wife’s account. There are additional fraudulent acts outlined in the complaint which, including a scam in which he sold non-existent artist passes to the music festival in Coachella.

          “(Yohai)…chose…to prey on those who trusted him, including friends and even family, taking their savings so he could splash out on luxury housing, automobiles, and high-living,” the prosecution wrote in the government’s sentencing memorandum. “He did not restrict his marks to big businesses. He was just as likely to use his intelligence and charm to con families out of their life savings, or to steal from individuals whatever they would trust him with. Predictably, this resulted in emotional scars, financial devastation, changes in personality, and strains in partnerships and marriages.”

          Yohai has been in federal custody since November 2018 one week after the Los Angeles Police Department arrested him on cases filed by local prosecutors.

          These matters were investigated by the FBI and the Los Angeles Police Department’s Major Crimes Division Transnational Organized Crime Section.

          The two cases against Yohai were prosecuted by Assistant United States Attorney Andrew G. Brown of the Major Frauds Section.

          RIVERSIDE, California – A San Bernardino County woman has been arrested on a federal criminal complaint alleging she produced child pornography of her boyfriend’s daughter, who is under the age of 12 years old.

          Stefani Kasey Marie Stevens, 28, of Yucaipa, was arrested at her home on Friday afternoon. During her initial court appearance this afternoon in United States District Court in Riverside, she was ordered detained.

          Stevens has been charged with one count of production of child pornography. Her arraignment is scheduled for December 17.

          According to an affidavit filed with the complaint, on November 8, law enforcement officers executed two search warrants at Stevens’s home. Stevens agreed to be interviewed by law enforcement and she admitted to using her iPhone to take sexually explicit photographs of a minor girl, the affidavit states. Stevens allegedly told law enforcement that she had taken between eight and 10 sexually explicit images of the victim and later sent them to someone on the online messaging service Kik.

          Kik previously identified a user account as having uploaded child exploitation material to its platform, the affidavit states. That user account was identified as belonging to Stevens, the affidavit states.

          During the search, law enforcement seized Stevens’s iPhone, two tablets, a desktop computer, and bedding that matched bedding depicted in the sexually explicit photographs, according to the affidavit.

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

          If convicted of this charge, Stevens would face a mandatory minimum sentence of 15 years in federal prison and a statutory maximum sentence of 30 years in federal prison.

          This matter was investigated by Homeland Security Investigations and the San Bernardino County Sheriff’s Department.

          This case is being prosecuted by Assistant United States Attorney Robert S. Trisotto of the Riverside Branch Office.

          LOS ANGELES – Three Saudi nationals have been charged in two separate indictments for allegedly violating federal export laws by purchasing more than $100,000 in weapons parts in the United States while on student visas and then smuggling the parts to the Kingdom of Saudi Arabia.

          A five-count indictment returned Wednesday by a federal grand jury in Riverside charges Hatim Humeed Alsufyani, 36, and Mosab Alzahrani, 27, both formerly of San Bernardino, with one count of conspiracy to smuggle goods out of the United States without obtaining export licenses. Alsufyani also was charged with three counts of knowingly exporting weapons parts without a license, while Alzahrani also was charged with one count of knowingly exporting weapons parts without a license.

          Between May 2014 and July 2018, Alsufyani and Alzahrani allegedly conspired to smuggle firearms parts from the U.S. to Saudi Arabia by concealing rifle barrels, rifle triggers, and other items related to firearms in their checked luggage on flights from Los Angeles to Saudi Arabia. They allegedly also would falsely identify rifle barrels, rifle triggers, and other items related to firearms as “shower curtain rods” or “car parts,” or other false names before exporting the items to Saudi Arabia.

          For example, on December 10, 2016, Alzahrani attempted to board a flight from Los Angeles to Riyadh with 30 firearms parts concealed in his checked luggage, including 12 rear sight leaf assemblies and six New England Custom Gun single set rifle triggers, the indictment alleges. Alzahrani also lied to U.S. customs officials about possessing rifle barrels in the United States that were intended to be exported to Saudi Arabia, according to the indictment.

          If convicted of all charges, Alsufyani would face a statutory maximum sentence of 65 years in federal prison, and Alzahrani would face 25 years in federal prison.

          In a separate indictment returned on November 1 and unsealed today, Abdulwahab Mohammed A. Alabdulwahab, 30, formerly of Los Angeles, was charged with 15 counts of smuggling and 15 counts of knowingly exporting firearms parts from the United States without first having obtained an export license from the State Department.

          Between December 2015 and January 2018, Alabdulwahab contacted U.S.-based firearms parts retailers to purchase firearms parts for the purpose of illegally exporting those components to Saudi Arabia, the indictment alleges. Specifically, Alabdulwahab purchased .223-caliber and .308-caliber rifle barrels, which by federal law require a license to be exported from the United States to any other country, according to the indictment. At no time did Alabdulwahab apply for, receive, or possess such a license, the indictment alleges.

          If convicted of all charges, Alabdulwahab would face a statutory maximum sentence of 10 years in federal prison for each smuggling count, and 20 years’ imprisonment for each violation of the Arms Export Control Act.

          All three defendants are believed to be in Saudi Arabia.

          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 FBI-led Joint Terrorism Task Force and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations investigated both cases, with support from U.S. Customs and Border Protection.

          The Alsufyani case is being prosecuted by Assistant United States Attorney Reema El-Amamy of the Terrorism and Export Crimes Section. The Alabdulwahab case is being prosecuted by Assistant United States Attorney Christopher Grigg, Chief of the Terrorism and Export Crimes Section. Supporting both cases is Trial Attorney Matthew Chang of the Justice Department’s National Security Division, Counterintelligence and Export Control Section.