Eastern District of California

SACRAMENTO, Calif. — An eight-count indictment was unsealed following the arrest of Carlos Luis Vera La Cruz, 44, of Miami, charging him with conspiracy, bank larceny, accessing a protected computer in furtherance of fraud, and attempting to access a protected computer in furtherance of fraud, U.S. Attorney Phillip A. Talbert announced.

The indictment, brought on April 18, 2024, also charges a second individual, whose name remains under seal.

According to court documents, Vera La Cruz and others engaged in an ATM “jackpotting” conspiracy where they stole money from ATMs at targeted banks and credit unions around the country. They did this by infecting the ATMs with malware, which forced the ATMs to dispense money without a valid transaction. In June 2023, as part of this scheme, Vera La Cruz targeted seven ATMs belonging to a bank in and around Redding and Chico, California, stealing $291,820. In total, Vera La Cruz and his co-conspirators have successfully stolen more than $2,615,766 from banks and credit unions in multiple states.

This case is the product of an investigation by the Federal Bureau of Investigation, with assistance from the U.S. Secret Service. Assistant U.S. Attorney Elliot C. Wong is prosecuting the case.

If convicted, Vera La Cruz faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for bank larceny, and a maximum statutory penalty of five years in prison and a $250,000 fine for the counts of conspiracy and for each count of accessing a protected computer in furtherance of fraud. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Garrett Scott Wheelen, 33, of Fresno, charging him with possessing methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on May 1, 2024, Wheelen arrived at the Federal Correctional Institution Mendota wearing a facemask, baseball cap, and hoodie to conceal his identity. In broad daylight, Wheelen ran to the prison fence and tossed four packages into the prison’s recreation yard. He was quickly apprehended after attempting to flee. The packages contained over 3 pounds of methamphetamine.

According to the criminal complaint, none of the inmates who were in the recreation yard retrieved the packages that were thrown.

This case is the product of an investigation by the Federal Bureau of Investigation, the Mendota Police Department, and the Bureau of Prisons. Assistant U.S. Attorney Cody S. Chapple is prosecuting the case.

If convicted, Romero faces a statutory maximum of 20 years in prison, and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Roman Rodriguez, 26, of Bakersfield, charging him with receipt and distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between Feb. 18, 2024, and Feb. 22, 2024, Rodriguez used an iPhone to receive and distribute at least one visual depiction of a child engaged in sexually explicit conduct. Rodriguez used several other devices to receive visual depictions of a child engaged in sexually explicit conduct during multiple other timeframes that began as early as October 2022.

This case is the product of an investigation by the Homeland Security Investigations and the Bakersfield Police Department. Assistant U.S. Attorney Brittany M. Gunter is prosecuting the case.

If convicted, Rodriguez faces a maximum statutory penalty of up to 20 years in prison, with a mandatory minimum of five years in prison, and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

SACRAMENTO, Calif. — On May 16, 2024, a federal grand jury returned a three-count indictment against Christopher King, 29, of Red Bluff, charging him with attempted sexual exploitation of a child and distribution and possession of visual depictions of a minor engaging in sexually explicit conduct, U.S. Attorney Phillip A. Talbert announced. The case was unsealed Tuesday following his arrest.

According to court documents, King attempted to sexually abuse a minor by producing secret recordings of the minor utilizing a hidden camera. King also distributed images of children involved in sexually explicit conduct on an online social media platform. Finally, King possessed several images of children engaged in sexually explicit conduct on electronic devices seized from his residence.

This case is the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorney Whitnee Goins is prosecuting the case.

If convicted of attempted sexual exploitation of a child, King faces a mandatory minimum sentence of 15 years and a maximum statutory penalty of 30 years in prison, a lifetime of supervised release, restitution, and a $250,000 fine. If convicted of distribution of a visual depiction of a minor engaging in sexually explicit conduct, King faces a mandatory minimum sentence of five years and a maximum statutory penalty of 20 years in prison, a lifetime of supervised release, plus restitution and a fine. If convicted of possession of a visual depiction of a minor engaging in sexually explicit conduct, King faces a maximum statutory penalty of 10 years in prison, a lifetime of supervised release, plus restitution and a fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven beyond a reasonable doubt.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

FRESNO, Calif. — Nathan Vaughn Southard, 34, of Visalia, pleaded guilty Monday to theft of mail by a postal service employee, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Southard was an employee at the Tulare Main Post Office. On Oct. 19, 2023, Southard stole a parcel from the post office because he believed it contained marijuana and intended to sell it for a profit. Southard admitted that over the past seven years he had stolen parcels worth approximately $50,000.

U.S. Postal Service Office of Inspector General, Western Pacific Area Field Office, Deputy Special Agent-in-Charge Christopher Paige said, “Narcotics and theft offenses committed by Postal Service personnel are completely unacceptable. The special agents for the U.S. Postal Service Office of Inspector General are steadfast in their dedication to maintaining the integrity of the U.S. Postal Service. The USPS OIG values our working relationship with the U.S. Attorney’s Office and various law enforcement agencies in holding Postal Service personnel accountable for their actions when they violate a position of trust.”

Southard is scheduled to be sentenced on Sept. 9, 2024, by U.S. District Judge Jennifer L. Thurston. Southard faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the U.S. Postal Service Office of Inspector General with assistance from the Drug Enforcement Administration and the Tulare County Sheriff’s Office. Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.

FRESNO, Calif. — On April 25, 2024, a federal grand jury returned an indictment against Boyce Isaiah Cervantez, 27, of Dinuba, charging him with receipt of child pornography, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed following his arrest on Friday, May 17.

According to court documents, between March 1, 2024, and March 16, 2024, Cervantez received at least one visual depiction of children engaged in sexually explicit conduct.

This case is the product of an investigation by the Federal Bureau of Investigation and the Dinuba Police Department. Assistant U.S. Attorney Brittany M. Gunter is prosecuting the case.

If convicted, Cervantez faces a maximum statutory penalty of up to 20 years in prison, with a mandatory minimum of five years in prison, and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

FRESNO, Calif. — German Antonio Lopez-Velasquez, 55, of Modesto, pleaded guilty today to conspiring to commit bank fraud, U.S. Attorney Phillip A. Talbert announced.

According to court documents, German Antonio Lopez-Velasquez, a real estate agent, worked with Lisa Santos, 48, of Long Beach, a mortgage loan officer, and Marko Antonio Lopez, 27, of Modesto, a real estate agent and notary public, to obtain fraudulent mortgage loans for properties based in Stanislaus, San Joaquin, and Santa Clara Counties, and elsewhere. The three defendants used false documents, fictional companies, and fictional individuals to obtain mortgage loans for borrowers who were not qualified to receive loans.

“The integrity of the FHA loan program is essential to helping hard working citizens realize the American dream of homeownership,” said Special Agent-in-Charge Mark Kaminsky with the U.S. Department of Housing and Urban Development, Office of Inspector General. “HUD OIG will continue to work with its prosecutorial and law enforcement partners to vigorously pursue those who seek to jeopardize this program and the health and stability of our nation’s housing market.”

Santos pleaded guilty on May 13, 2024, to conspiring to commit bank fraud, and is scheduled to be sentenced on Sept. 30, 2024. Marko Antonio Lopez previously pleaded guilty and was sentenced on April 1, 2024.

Lopez-Velasquez is scheduled to be sentenced on Sept. 9, 2024, by U.S. District Judge Jennifer L. Thurston. Lopez-Velasquez faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), the U.S. Department of Housing and Urban Development – Office of Inspector General (HUD-OIG) and the U.S. Postal Inspection Service (USPIS). Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.

FRESNO, Calif. — A federal judge sentenced Roy Gene Drees, 48, of Bakersfield, today to four years in prison for use of facilities of interstate commerce in aid of a racketeering enterprise, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Jatin Bhakta purchased and began operating the Desert Star Motel at 516 South Union Avenue in Bakersfield in 2015. From 2015 through late 2020 the Bakersfield Police Department made numerous prostitution-related arrests and child rescues at the property. Drees lived and worked at the motel until a federal search warrant was executed on Jan. 22, 2021, at which time 15 prostitutes and three pimps were encountered along with Drees and Bhakta. While working at the motel, Drees intentionally helped the management and carrying on of the prostitution activity through various means, including through telephone calls, text messages, providing transportation, and making motel arrangements.

One pimp, Darnell Edwards, who had forced two minor females to engage in prostitution at the Desert Star, was sentenced on May 1, 2023, to 19 years and seven months in federal prison.

This case was the product of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, the Bakersfield Police Department, and the Parole Division of the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney David L. Gappa prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims.

SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment, which was unsealed Wednesday, charging Stockton residents Rosalva Angulo Castillo, 53, and Adan Garcia Castillo, 45, with conspiracy to traffic heroin and methamphetamine and with distributing heroin, U.S. Attorney Phillip A. Talbert announced.

According to court documents, from January 2018 through May 2023, Angulo Castillo and Garcia Castillo conspired to distribute and possess with intent to distribute heroin and methamphetamine. On Oct. 25, 2019, Garcia Castillo distributed at least one kilogram of heroin, and on Dec. 8, 2020, and July 13, 2021, Angulo Castillo distributed at least 100 grams of heroin.

This case is the product of an investigation by the Drug Enforcement Administration, with assistance from the Federal Bureau of Investigation, Homeland Security Investigations, the IRS Criminal Investigation, the California Highway Patrol, and the San Joaquin County Metropolitan Narcotics Task Force. Assistant U.S. Attorneys David W. Spencer and Emily G. Sauvageau are prosecuting the case.

If convicted, each defendant faces a minimum of 10 years of prison and a maximum statutory penalty of life in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about OCDETF, please visit Justice.gov/OCDETF.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Anthony Coates, 28, of Sacramento, charging him with distribution of methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Coates distributed 1 pound of methamphetamine in March 2024 and 3 pounds of methamphetamine in April 2024.

This case is the product of an investigation by the Drug Enforcement Administration and the U.S. Postal Inspection Service, with assistance from the High-Intensity Drug-Trafficking Area Task Force. Assistant U.S. Attorney Haddy Abouzeid is prosecuting the case.

If convicted, Coates faces a maximum statutory penalty for each count of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Jaswinder Bhangoo, 51, of Bakersfield, was sentenced today to 18 months in prison for stealing $163,750 in COVID-19 relief money, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between May 2020 and November 2021, Bhangoo applied for over $250,000 in COVID-19 relief loans from the U.S. Small Business Administration. In the applications, Bhangoo falsely represented that he owned multiple businesses with several employees and substantial revenues. He also represented that he had not been convicted of a felony in the previous five years when, in fact, he had been convicted of insurance fraud. Based on Bhangoo’s false representations, some of his loan applications were approved, and he received approximately $163,750 in federal funds to which he was not entitled. Bhangoo was ordered to pay $163,750 in restitution as part of his sentence.

This case was the product of an investigation by the Treasury Inspector General for Tax Administration. Assistant U.S. Attorneys Brittany M. Gunter and Joseph Barton prosecuted the case.

This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.

SACRAMENTO, Calif. — Jason Toland, 43, of Wheatland, pleaded guilty today to one count of submitting false claims against the United States related to COVID-19 pandemic tax credits, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Toland attempted to obtain more than $13.4 million in COVID-19 pandemic relief, including by filing multiple false tax returns with the IRS seeking refunds for the Employee Retention Credit and the COVID Sick and Family Leave Credit. Toland used shell companies that had no real employees and no actual business activity to seek over $11 million in such tax refunds to which he was not entitled. In addition, between 2020 and 2023, Toland used the shell companies to fraudulently obtain more than $1.7 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) funds. All these tax credits and programs were intended to alleviate the economic harm caused by the COVID-19 pandemic on real businesses with real employees and operating expenses.

To pursue the funds, Toland submitted multiple: (1) Tax forms 941 and 941-X seeking Employee Retention Credit and COVID Sick and Family Leave Credit refunds from the IRS; (2) PPP loan applications to various banks; and (3) EIDL applications to the Small Business Administration (SBA) – all on behalf of the phony shell companies. In one specific instance, on Nov. 18, 2022, Toland filed two false Forms 941 (which are Employer’s Quarterly Federal Tax Returns) to the IRS that resulted in improper refunds in the amount of $210,868 being paid out to Toland.

Of the over $13.4 million that he sought through false tax returns and fraudulent loan applications, Toland successfully obtained over $1.95 million. All the funds Toland received went to his own personal enrichment. As a part of his plea agreement, Toland has agreed to pay $1,952,504 in restitution, plus interest and fees, to the IRS and SBA.

“Tax credits are another face of pandemic fraud, and our COVID-19 Fraud Strike Force will continue to pursue those who abuse them,” said U.S. Attorney Talbert. “The defendant’s false claims targeted credits meant for real businesses suffering real consequences of the pandemic. The U.S. Attorney’s Office remains committed to working with our law enforcement partners to identify and prosecute those who provide false information to seek these credits.”

“Mr. Toland’s plea reinforces a simple message. Crime does not pay,” said IRS Criminal Investigation Oakland Field Office Acting Special Agent in Charge Michael Mosley. “Our highly trained agents are experts at investigating financial crimes and following the money directly to criminals pursing ill-gotten gains. Our agents are also motivated to protect the American people against fraudsters siphoning money from citizens in need.”

This case is the product of an investigation by IRS Criminal Investigation (CI) Oakland Field Office in collaboration with the CI Nationally Coordinated Investigation Unit. IRS-CI received significant assistance from the SBA Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney Denise N. Yasinow is prosecuting the case.

Toland is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Oct. 8, 2024. Toland faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.

SACRAMENTO, Calif. — Carlos Aranda, 41, and Daniel Hunt, 38, both of Sacramento, were sentenced today to 66 and 57 months in prison, respectively, for conspiracy, bank fraud, and aggravated identity theft connected to postal thefts, United States Attorney Phillip A. Talbert announced.

According to court documents, Aranda, Hunt, and others engaged in a conspiracy to steal postal locks, create postal keys, and steal mail, all in order to obtain stolen checks. The conspirators periodically gathered together at motel rooms and elsewhere to alter or “wash” stolen checks together. The conspirators then took the checks and attempted to negotiate, deposit, and/or cash them. In total, conspirators were responsible for nearly $250,000 in check fraud.

This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant United States Attorney Elliot C. Wong prosecuted the case.

FRESNO, Calif. — Alden Nunez-Rosales, 27, of Fresno, was sentenced today to 121 months in prison for possessing with intent to distribute over 400 grams of fentanyl, United States Attorney Phillip A. Talbert announced.

According to court documents, on April 26, 2023, Nunez-Rosales delivered 5,000 fentanyl pills to a person that he believed was a customer but was actually a government informant. Law enforcement officers then followed Nunez-Rosales back to his residence, where Nunez-Rosales obtained 45,000 more fentanyl pills that he intended to distribute. Minutes later, police officers attempted to conduct a traffic stop on Nunez-Rosales’s car, but he sped off, eventually crashed his car into a tree, and then fled on foot. Officers apprehended him and then searched his residence under a warrant. In total, officers seized over 12 kilograms of fentanyl pills as well as a firearm, ammunition, a scale, and over $3,500 in cash. Nunez-Rosales was charged and pled guilty to the offense in February 2024.

This case was the product of an investigation by Homeland Security Investigations and the Fresno Police Department. Assistant United States Attorney Justin J. Gilio prosecuted the case.

This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.

FRESNO, Calif. — A federal grand jury returned an indictment against Pawel Pankow, 41, of Wolow, Poland, and Magdalena Pankow, 48, of Palm Coast, Florida, charging them with conspiracy to smuggle goods into the United States by means of false statements and to commit wire and mail fraud, as well as four separate counts of mail fraud, U.S. Attorney Phillip A. Talbert announced. Magdalena Pankow was arrested over the weekend in Flagler County, Florida, after the indictment issued last Thursday.

According to court documents, Pawel Pankow began shipping airbags into the United States no later than in 2008 and sold thousands of them through online sales, mostly through eBay. Pankow listed the items as in brand new condition and as genuine original equipment parts even though the items were used, counterfeit, assembled from used components, and/or not authorized for sale in the United States. Pawel Pankow shipped airbags, purchased from sources in Europe and China, to Magdalena Pankow in Florida and often mislabeled the shipments as products other than airbags. Magdalena Pankow then fulfilled orders from locations in Florida by sending them through the United States Postal Service. Federal regulations classify airbags as hazardous material, and they cannot be shipped by air or ground through the United States Postal Service.

This case is the product of an investigation by FBI offices in Fresno, California, and Jacksonville, Florida, with assistance from the Intellectual Property Rights Center in Arlington, Virginia, United States Customs and Border Protection, and Homeland Security Investigations. Assistant U.S. Attorney David Gappa is prosecuting the case.

Magdalena Pankow is scheduled to make her initial appearance before a United States magistrate judge in Jacksonville, Florida. Pawel Pankow has not yet been arrested or appeared in court on the case.

If convicted, the defendants each face a maximum statutory penalty of 20 years in prison on each fraud count and five years in prison on the conspiracy count. Each charge has a maximum potential fine of $250,000 and a three-year term of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Tracy Emery Smith, 42, of Valley Springs, was sentenced today to 37 months in prison and ordered to pay $901,035 in restitution for COVID-19 Paycheck Protection Program (PPP) loan fraud and money laundering, U.S. Attorney Phillip A. Talbert announced.

Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications, including their number of employees and average monthly payroll.

“Smith’s bogus loan applications drained the PPP program of funds intended for actual businesses that were negatively impacted by the pandemic,” said U.S. Attorney Talbert. “The U.S. Attorney’s Office will continue to investigate and prosecute those who obtained PPP funds through fraud.”

“The FBI is proud to partner with our fellow agencies. Collaboration ensures a thorough investigation by leveraging the strengths and unique abilities of each agency,” said Special Agent in Charge Siddhartha Patel of the FBI Sacramento Field Office. “This case is an example of how federal agencies work together to protect taxpayer funded programs.”

“Tracy Smith fraudulently falsified Paycheck Protection Program loan applications and obtained funds designated to provide Americans financial relief during the COVID-19 pandemic under the CARES Act,” said IRS Criminal Investigation Acting Special Agent in Charge Michael Mosley of the Oakland Field Office. “Today’s sentencing reinforces that IRS Criminal Investigation special agents and investigative staff are following the money and targeting fraudsters who seek to exploit the government’s relief efforts for their personal gain.”

“Mr. Smith created ghost employees and falsified loan applications in order to fraudulently obtain PPP loan proceeds earmarked to help struggling businesses during the COVID-19 pandemic. Mr. Smith’s actions not only defrauded the PPP Loan Program, but also disadvantaged business owners who were actually entitled to the benefits,” said Special Agent in Charge Ryan L. Korner from the San Francisco Regional Office of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG). “The FDIC OIG is committed to working alongside our law enforcement partners to protect the Nation’s financial system and hold accountable those individuals, like Mr. Smith, who steal benefits designated to help those in need.”

“Tracy Smith defrauded the federal government of pandemic relief funds for his own personal gain and will now pay the price for his crimes,” said Jon Ellwanger, Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office to hold Mr. Smith accountable.”

According to court documents, in 2020, in order to receive PPP loans to which he was not entitled, Smith submitted loan applications for three companies containing false information such as the number of employees, the average monthly payroll for the company, and that he had not been involved in any bankruptcy. Smith was listed as sole owner of Sharp Holding, and in the PPP loan application for that company, Smith claimed 27 employees with an average monthly payroll of $105,791. He certified that he was not involved in a bankruptcy when, in fact, his bankruptcy was pending at the time of the application. Smith received PPP loan proceeds of $220,600.

According to court documents, Smith submitted similar false loan applications for Real Fund 360 and Sharp Investor, receiving $452,800 and $242,000 respectively. As with Sharp Holdings, neither company had employees or a payroll.

This case was the product of an investigation by the Federal Bureau of Investigation, the IRS Criminal Investigation, the Federal Deposit Insurance Corporation Office of Inspector General, and the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau Office of Inspector General. Assistant U.S. Attorney Roger Yang prosecuted the case.

This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.

SACRAMENTO, Calif. — A federal grand jury returned a 2-count indictment against Trevor Clayton Morgan, 32, of Fairfield, charging him with sexual exploitation of a child and receipt of visual depictions of minors engaging in sexually explicit conduct, United States Attorney Phillip A. Talbert announced. The indictment was unsealed after Morgan’s arrest on May 9, 2024, and he made his initial court appearance today.

According to court documents, in April 2023 Morgan persuaded a minor victim to engage in sexually explicit conduct for the purpose of producing a video recording. In December 2023, Morgan also knowingly received one or more visual depictions of minors engaging in sexually explicit conduct.

This case was the product of an investigation by Contra Costa District Attorney’s Office, United States Homeland Security Investigations, the Silicon Valley Internet Crimes Against Children Task Force, and the Sacramento Valley Hi-Tech Crimes Task Force / Internet Crimes Against Children Task Force. Assistant United States Attorney Christina McCall is prosecuting the case.

If convicted of sexual exploitation of a child, Morgan faces a maximum statutory penalty of 30 years in prison (with a mandatory minimum sentence of 15 years), a lifetime of supervised release, restitution and a $250,000 fine. If convicted of Receipt of Visual Depiction of a Minor Engaging in Sexually Explicit Conduct, Morgan faces a maximum statutory penalty of 20 years in prison (with a mandatory minimum sentence of 5 years), a lifetime of supervised release, plus restitution and a fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.

SACRAMENTO, Calif. — On May 9, 2024, Billy Glyn Sims Jr. of Yuba City was sentenced to 70 months in prison for unlawfully dealing in firearms without a license and for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced. 

According to court documents, between April 1, 2022, and March 9, 2023, Sims, who is not a licensed firearms dealer, unlawfully engaged in the business of dealing in firearms. In three separate transactions in motel and apartment complex parking lots, Sims sold an FBI confidential source a Mossberg Shotgun, a Ruger single-action revolver, and a black powder revolver and a box containing .45 caliber ammunition. The transactions occurred in Yuba, Yolo, and Sutter Counties. At least one of the transactions occurred after Sims became aware that the source was a “double felon” and thus prohibited from possessing firearms or ammunition. Sims also offered to sell the source several other firearms, including an AR-15 assault rifle, although these transactions were never completed. Sims was prohibited from possessing any firearms because of his own prior felony convictions, including for domestic violence and burglary.

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Justin L. Lee and Dhruv M. Sharma prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.  For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

SACRAMENTO, Calif. — Gabriel Joseph Detrant, 50, of Redding, was sentenced today to 41 months in prison for being a felon in possession of a firearm, United States Attorney Phillip A. Talbert announced. 

According to court documents, on Feb. 2, 2021, law enforcement officers conducted a traffic stop of a vehicle Detrant was driving in Redding. Detrant stopped the vehicle, and he and a passenger fled on foot. The officers found a Baikal Makarov, Model IJ-70 9 mm handgun loaded with eight rounds by the driver’s seat. Officers later found Detrant hiding nearby in possession of a magazine loaded with eight 9 mm rounds. Detrant is prohibited from possessing firearms or ammunition because he has multiple prior felony convictions, including a 2018 conviction in Shasta County for being a felon in possession of a firearm.

This case was the product of an investigation by the Shasta County District Attorney’s Office, the Redding Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Haddy Abouzeid prosecuted the case. 

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

Deputy Attorney General (AG) Lisa Monaco traveled to San Francisco this week to participate in the 2024 RSA Cybersecurity Conference and underscore the Justice Department’s efforts to combat cybercrime and other persistent and emerging threats to national security, including the abuse of disruptive technologies, particularly AI.

In a keynote conversation at RSA on “Artificial Intelligence: The Ultimate Double-Edged Sword,” the Deputy AG highlighted how the Justice Department is developing guardrails to harness the benefits of AI to fulfill the Department’s mission, while mitigating the risks posed by misuse. She spoke to AI’s potential to help identify, disrupt, and deter criminals, terrorists, and hostile nation-states — and shared how the Department is using AI tools to speed up response times to a variety of threats. She stressed that existing laws offer a firm foundation to confront misuse of AI, even as the legal framework around AI evolves. Deputy AG Monaco warned of AI’s potential to supercharge existing threats to election security — in a year when over half the global population will vote — and she urged vigilance in the face of AI’s potential to accelerate online hate and disinformation, imitate trusted sources of information, and proliferate deepfakes.

The Deputy AG was interviewed by former FBI Deputy Director Sean Joyce at the 14th Annual Executive Dinner at RSA, where she discussed the progress of the Department’s Justice AI Initiative. Launched by the Deputy AG in February at the University of Oxford, Justice AI brings together stakeholders across industry, academia, law enforcement, and civil society to share expertise on both the promise of AI and the perils of its misuse.

At the RSA CEO Roundtable, she joined other senior government officials and leaders across the cybersecurity industry to discuss combating cyber threats, including the importance of public-private collaboration to the Department’s cyber strategy of protecting victims and prioritizing disruptions. Strong public-private partnerships have accelerated both the speed and scale of the Justice Department’s disruptive operations and have proven critical to dismantling nation-state-controlled botnets, taking down darknet marketplaces, and disrupting major ransomware gangs — such as the LockBit group, whose creator and administrator the Deputy AG announced was charged in the latest phase of a targeted international law enforcement operation.

The Deputy AG also led a roundtable convening, hosted by the Aspen Institute, with technology, financial, and venture capital executives to discuss the collective risks posed by the theft and abuse of disruptive technologies, especially AI, in a heightened geopolitical risk environment. She emphasized the work of the Justice Department’s Disruptive Technology Strike Force, a multi-agency effort to stop adversaries from siphoning our most critical technologies and innovations.

While in California, the Deputy AG visited the U.S. Attorney’s Office for the Eastern District of California in Sacramento. In meetings with U.S. Attorney Phillip A. Talbert, his leadership team, and the prosecutors and professional staff of the office, she thanked them for their hard work and dedication to the Department’s mission. Deputy AG Monaco also sat down with local, state, and federal law enforcement partners to discuss their collaboration to tackle violent crime and other public safety challenges.

SACRAMENTO, Calif. —Devin Shanahan, 29, of Winnetka, pleaded guilty Tuesday to conspiracy to distribute heroin, cocaine, and methamphetamine over the dark web, United States Attorney Phillip A. Talbert announced. 

According to court documents, Shanahan worked with his coconspirators to create narcotics vendor accounts on various dark web marketplaces in 2018 and 2019, including accounts known as “BuxomBrunette,” “CaliCartel,” and “Playground.” Shanahan used his computing expertise to set up, troubleshoot, and help his co-conspirators operate their technical infrastructure, including encryption and shipping tools as well as cryptocurrency wallets. These vendor accounts consummated over 2,000 sales of narcotics between October 2018 and May 2019, totaling approximately 1.7 kilograms of heroin, 2.9 kilograms of cocaine, and 1.6 kilograms of methamphetamine.

This case was the product of an investigation by Homeland Security Investigations, with the assistance of the Northern California Illicit Digital Economy (NCIDE) Task Force.  The NCIDE Task Force is a federal task force focused on targeting all forms of illicit dark web and cryptocurrency activity in the Eastern District of California and beyond, and includes agents from Homeland Security Investigations, the Federal Bureau of Investigation, the United States Postal Inspection Service, the United States Postal Service Office of Inspector General, the Internal Revenue Service - Criminal Investigation, and the Drug Enforcement Administration. Assistant United States Attorney Sam Stefanki is prosecuting the case.

The United States Attorney’s Office for the Eastern District of California prosecuted a number of other defendants and co-conspirators in cases related to Shanahan’s, including the following:

• United States v. Ian Hoffmann, No. 2:21-cr-00017-JAM, in which defendant Ian Hoffmann was sentenced to ten years in federal prison for conspiracy to distribute heroin, methamphetamine, and cocaine.
• United States v. Gabriel Alva, No. 2:21-cr-00178-JAM, in which defendant Gabriel Alva was sentenced to ten years in federal prison for conspiracy to distribute heroin, methamphetamine, and cocaine, as well as for possession of a firearm in furtherance of a drug trafficking crime.
• United States v. Catherine Stuckey, No. 2:20-cr-00044-JAM, in which defendant Catherine Stuckey was sentenced to two years of supervised release for conspiracy to distribute heroin, cocaine, and methamphetamine.
• United States v. George Franco, No. 2:21-cr-00244-JAM, in which defendant George Franco was sentenced to two years of probation for distributing cocaine.

Shanahan is scheduled to be sentenced by Senior United States District Court Judge John A. Mendez on October 8, 2024. Shanahan faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Makiah Miles, 30, of Compton, California, was sentenced yesterday to 21 months in prison and Apryl Weston, 51, of Santa Maria, California, was sentenced yesterday to 5 months in prison and 5 months home detention for submitting fraudulent unemployment insurance claims to the California Employment Development Department (EDD) in the names of inmates, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Miles was an inmate at the Central California Women’s Facility in Chowchilla, California, and Weston is her mother.  Miles had previously been convicted of DUI manslaughter. 

From June through December 2020, Miles obtained other inmates’ names, dates of birth, and social security numbers and sent that information to Weston to submit claims in those inmates’ identities as well as Miles’ own identity.  The underlying applications misrepresented that Miles and the other inmates worked as childcare providers, cosmetologists, hairdressers, and other occupations, that they last worked within the prior few months and recently became unemployed because of the COVID-19 pandemic, and that they were currently available to work.  The fraudulent claims were worth nearly $250,000.

This case is the product of an investigation by FBI, the California Department of Corrections and Rehabilitation’s Investigative Services Unit, and the EDD.  Assistant United States Attorney Joseph Barton is prosecuting the case.

This case is part of the California COVID-19 Fraud Enforcement Strike Force, which is one of the interagency COVID-19 fraud strike forces established by the United States Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California, and focuses on large-scale, multistate, and egregious pandemic relief fraud.  The strike force uses prosecutor-led, and data analyst-driven, teams to identify and bring to justice those who stole pandemic relief money.

FRESNO, Calif. — Evan Moore, 40, of Chowchilla, was sentenced yesterday to 34 months in prison for being a felon in possession of a firearm, United States Attorney Phillip A. Talbert announced.

According to court documents, on Dec. 18, 2022, Madera Police officers stopped Moore after observing several traffic violations.  Moore was found to be in possession of 1.24 pounds of marijuana, a digital scale, and zip-loc baggies.  Hidden underneath the steering column, officers located a Glock 19 handgun.  Because of his criminal record, including two prior convictions for illegally possessing firearms, Moore may not lawfully possess firearms or ammunition.

This case is the product of an investigation by the Federal Bureau of Investigation and the Madera Police Department. Assistant United States Attorney Antonio J. Pataca prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

FRESNO, Calif. — Louie Molina, 52, of Hanford, was sentenced yesterday to 14 years in prison for possession with intent to distribute over 500 grams of methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in March 2019, various agencies partnered in Operation Red Reaper, an investigation into the Nuestra Familia prison gang and the Norteño street gang in Kings County. During the investigation, recorded interceptions on a wiretap revealed that Molina was supplying methamphetamine to a codefendant, who was a target of the investigation. On May 3, 2019, Molina delivered about a half a pound of methamphetamine to his codefendant.  Law enforcement officers then attempted a to conduct a traffic stop on his car, but Molina sped off and led them on a high-speed chase. During the pursuit, Molina tossed the additional pound of methamphetamine out of his car.  After apprehending Molina, the officers recovered the methamphetamine.

This case was the product of an investigation by the Kings County Gang Task Force, Agents of the Special Operations Unit which is a team of agents from the California Department of Justice and the California Highway Patrol, the California Department of Corrections and Rehabilitation, the FBI, the Kings County District Attorney's Office, and the Tulare County Sheriff's Office. The DEA, ATF, U.S. Marshals Service, and Homeland Security Investigations all assisted with the takedown. Assistant United States Attorney Justin J. Gilio prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.

FRESNO, Calif. — Justin Ernest Breitwieser, 56, of Fresno, was sentenced yesterday to 56 months in prison and ordered to pay over $2,700 in restitution for burglary of a federally licensed firearms dealer, United States Attorney Phillip A. Talbert announced.

According to court documents, on Sept. 3, 2022, Breitwieser broke into firearms dealer #1 and stole six firearms, ammunition, and other items. Then, on Oct. 29, 2022, Breitwieser broke into firearms dealer #2 and stole an AR-15 upper assembly, a Glock conversion kit, and a tactical bullet proof vest. A search of Breitwieser’s residence recovered evidence from the burglaries. Additionally, agents located two firearms and approximately 900 rounds of ammunition.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant United States Attorney Antonio J. Pataca prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

FRESNO, Calif. — Jesus Antonio Munoz, 26, of Bakersfield, pleaded guilty yesterday to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Aug. 10, 2023, law enforcement officers executed a federal drug search warrant at a stash house in Bakersfield following an undercover purchase of 4 pounds of methamphetamine from co-defendant Ramon Maldonado, 32, of Bakersfield. During the execution of the search warrant, Munoz was found in the living room in possession of firearm. Maldonado was found in one of the bedrooms of the residence where officers also located a large quantity of controlled substances and another firearm. Munoz is prohibited from possessing firearms due to prior felony convictions for assault with a deadly weapon and carrying a loaded firearm without registration.

Maldonado is scheduled for a status conference on May 29, 2024. The charges against Maldonado are only allegations, and he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Munoz is scheduled to be sentenced by United States District Judge Jennifer L. Thurston on July 29, 2024. Munoz faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. 

The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.

SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment on Thursday against Anton Andreyevich Iagounov, 38, of South Lake Tahoe, charging him with falsely impersonating a federal officer, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Iagounov pretended to be a federal law enforcement agent by creating false investigative documents, which purported to be sent by a federal agent, in an attempt to obtain government documents and other sensitive information. On July 5, 2022, Iagounov sent a search warrant that he created to the U.S. Capitol Police, falsely claiming it was signed by a Special Agent of the NASA Office of the Inspector General (NASA-OIG) and appearing to be authorized by the Chief District Judge for the District of Columbia. On July 11, 2022, Iagounov again pretended to be a NASA-OIG agent, created a fake search warrant, and emailed it to the U.S. District Court for the Central District of California. He sent it from an email address with an internet domain that he owned and had named to look like a government agency’s internet domain. On July 18, 2022, Iagounov again sent the fake search warrant, purporting to be signed by the same fictitious NASA-OIG agent, and sent it to the U.S. Bankruptcy Court for the Middle District of Georgia. 

Finally, on July 24, 2022, Iagounov faxed a letter, under the name of a real NASA employee, to the U.S. District Court for the Northern District of Florida, claiming that an exigent circumstance required a judge’s signature on a non-existent search warrant immediately. The letter included an email address for the agent that belonged to Iagounov.  All these documents were identified as suspicious by the courts and federal agencies to which they were sent.

This case is the product of an investigation by the Federal Bureau of Investigation, and the NASA Office of the Inspector General, with assistance by the South Lake Tahoe Police Department and the Carson City Sheriff’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.

If convicted, Iagounov faces a maximum statutory penalty of three years in prison and a $250,000 fine, per count of conviction. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — On May 2, 2024, a federal grand jury returned an indictment against Timothy Austin Panuco, 34, of Fresno, charging him with receipt of child pornography, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed following his arrest today.

According to court documents, between Feb. 1, 2023, and March 22, 2024, Panuco received material depicting at least one or more minors engaged in sexually explicit conduct.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brittany M. Gunter is prosecuting the case.

If convicted, Panuco faces a maximum statutory penalty of 20 years in prison, with a mandatory minimum of five years in prison, and a fine up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

SACRAMENTO, Calif. — The Project Safe Neighborhoods (PSN) initiative brings together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence. At the core of PSN is setting focused and strategic enforcement priorities that help prevent violence from occurring in the first place. U.S. Attorney Phillip A. Talbert announces the following actions in federal PSN cases.

Indictments

Billy Fobbs, 24, of Sacramento, was indicted on April 4, 2024, and charged with being a felon in possession of ammunition. According to court documents, on Sept. 28, 2023, Fobbs possessed 39 rounds of 300 caliber BLK ammunition. Fobbs is prohibited from possessing firearms or ammunition because he has prior felony convictions, including convictions for evading a police officer, assault, illegal possession of firearms, and attempted domestic violence. This case is the product of an investigation by ATF, with assistance from the Sacramento Police Department. Assistant U.S. Attorney Emily G. Sauvageau is prosecuting the case.

Jeremy Goodwin Jr., 22, of Fresno, was indicted on April 18, 2024, and charged with being a felon in possession of a firearm and ammunition. According to court documents, on March 2, 2024, Goodwin was found in possession of a 9 mm gun and 9 mm ammunition. Goodwin is prohibited from possessing firearms or ammunition because he has a prior felony conviction for carrying a loaded firearm in public. This case is the product of an investigation by the Fresno Police Department and Homeland Security Investigations. Assistant U.S. Attorney Cody S. Chapple is prosecuting the case.

Tionte Beard, 25, of Fresno, was indicted on April 18, 2024, and charged with being a felon in possession of a firearm and ammunition. According to court documents, on Nov. 7, 2023, Beard possessed a handgun, an assault-style rifle, and several rounds of ammunition in his Fresno residence. Beard posted photographs of some of the firearms to his Instagram account. Beard is prohibited from possessing a firearm or ammunition because he has prior felony convictions for illegal possession of a firearm and domestic violence. This case was the product of an investigation by the Fresno Police Department and the FBI. Assistant U.S. Attorney Cody S. Chapple is prosecuting the case.

Monte Shepherd, 53, of Rio Linda, was indicted on April 11, 2024, and charged with being a felon in possession of a firearm. According to court documents, on Jan. 27, 2024, Shepherd was found to be in possession of a stolen Ruger KP89 9 mm handgun. Shepherd has five prior felony convictions and is prohibited from possessing firearms. This case is the product of an investigation by the Sacramento County Sheriff’s Office and the FBI. Assistant U.S. Attorney Alex Cárdenas is prosecuting the case.

The penalty for being a felon in possession of a firearm or ammunition is up to 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Guilty Plea

Sophondara Hun, 28, of Stockton, pleaded guilty on April 25, 2024, to being a felon in possession of ammunition. According to court documents, law enforcement officers responded to a report of a prowler at an apartment complex. The caller advised there was a man inside her apartment and that he possibly entered through a window. When officers arrived they saw an open window and observed Hun sleeping on a bed in the apartment. Officers arrested Hun and upon searching Hun, noticed a .22 caliber bullet on the ground in front of Hun’s leg. Two .22 caliber bullets were found in Hun’s pocket and an additional .22 caliber bullet on the ground in front of Hun. Hun is prohibited from possessing ammunition because he has multiple state felony convictions, including assault on a person with a firearm, assault with a deadly weapon with force–possible great bodily injury, vandalism, and evading law enforcement in a vehicle. This case is the product of an investigation by the Stockton Police Department and ATF, with assistance from the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney Haddy Abouzeid is prosecuting the case. Hun is scheduled to be sentenced on Aug. 1, 2024, by U.S. District Judge Daniel J. Calabretta.

Sentencings

Michael David Punzal Jr., 41, of Fairfield, was sentenced on April 9, 2024, to three years and six months in prison for being a felon in possession of a firearm and 21 months in prison for violating the terms of his supervised release in a prior felon-in-possession case, for a total consecutive sentence of five years and three months in prison. According to court documents, in August 2022, Punzal was serving a term of supervised release for a prior federal felon in possession conviction. On August 30, 2022, a lawful search was executed at Punzal’s apartment in Fairfield. In it, law enforcement officers found a Model 22 Glock, .40 caliber pistol with an obliterated serial number between the box spring and mattress in Punzal’s room. Punzal is prohibited from possessing firearms due to seven prior felony convictions. This case was the product of an investigation by the FBI, ATF, and the San Francisco Police Department. Assistant U.S. Attorney Emily G. Sauvageau prosecuted the case.

These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

SACRAMENTO, Calif. — Steven Daniel Miller, 48, of Fairfield, pleaded guilty today to one count of bank fraud and one count of aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in October 2018, Miller used another person’s social security number to complete a credit application with a bank in order to purchase a 2018 Dodge Challenger Hellcat at a car dealership in Yuba City. Based on the false information on the credit application, the bank approved the loan and paid approximately $75,754 to the car dealership. Miller left the dealership with the vehicle, and it was subsequently seized by law enforcement.

This case is the product of an investigation by the U.S. Secret Service with assistance from the California Highway Patrol, the Solano County Sheriff’s Office, the Rocklin Police Department, the Gilroy Police Department, and the Fairfield Police Department. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.

Miller is scheduled to be sentenced by U.S. District Judge Daniel J. Calabretta on Aug. 8, 2024. Miller faces a maximum statutory penalty of 30 years in prison and a $1 million fine on the bank fraud count. He faces a two-year mandatory prison sentence on the aggravated identity theft count, which must run consecutive to any sentence received on the bank fraud count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Following a nine-week trial before Chief U.S. District Judge Kimberly J. Mueller, three members of the Aryan Brotherhood prison gang were found guilty of racketeering activity that included murder and drug trafficking, U.S. Attorney Phillip A. Talbert announced.

A federal jury found California State Prison Sacramento inmate Ronald Yandell, 61, guilty of one count of murder in aid of racketeering for the murder of Hugo Pinell, conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity; five counts of conspiracy to commit murder in aid of racketeering for the murders of Kenneth Johnson, James Mickey, Paul Diaz, Michael Trippe, and Doug Maynard; two counts of conspiracy to distribute and possess with intent to distribute methamphetamine and heroin; five counts of distribution of heroin; and one count of distribution of methamphetamine.

The jury found California State Prison Sacramento inmate Danny Troxell, 71, guilty of conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity and conspiracy to commit murder in aid of racketeering for the murder of James Mickey.

The jury found California State Prison inmate Billy Sylvester, 55, guilty of murder in aid of racketeering for the murder of Ronald Richardson, conspiracy to conduct the affairs of an enterprise through a pattern of racketeering activity, conspiracy to distribute and possess with intent to distribute methamphetamine and heroin, and distribution of methamphetamine.

“Today’s convictions further our effort to dismantle a violent criminal enterprise run from inside California prisons,” said U.S. Attorney Phillip A. Talbert. “The Aryan Brotherhood controlled its members, associates, and others both inside and outside prison walls, ordering multiple murders and running a drug trafficking operation that spanned counties and states. We will continue to use every law enforcement tool to protect the communities plagued by the violence and criminal activities of the Aryan Brotherhood.”

“Prior convictions and lengthy prison sentences didn’t alter the defendants’ disrespect for the law and public safety. They continued to commit brutal murders and other heinous crimes from behind bars, all while coordinating the distribution of drugs into the community for financial gain,” said DEA Special Agent in Charge Brian M. Clark. “These convictions deal a significant blow to the Aryan Brotherhood leadership and underscores our commitment to tackle violent criminal enterprises from the top down.”

“The outcome today reflects the successful coordination among the law enforcement agencies involved in this effort to combat the dangerous influence of prison gangs,” said CDCR Secretary Jeff Macomber. “I appreciate the hard work and dedication of each of the agencies and am proud of the expertise CDCR staff provided throughout the investigation.”

On June 6, 2019, a criminal complaint was unsealed that charged 16 members and associates of the Aryan Brotherhood (AB), a prison-based gang, following a long-running investigation into drug trafficking and murders inside and outside of California’s prisons.

According to court documents and evidence produced at trial, between 2011 and 2016, AB members and associates engaged in racketeering activity, committing multiple acts involving murder, conspiracies to murder, and drug trafficking crimes. Yandell and Sylvester oversaw a significant heroin and methamphetamine trafficking operation from their shared cell. Using smuggled-in cellphones, Yandell and Sylvester directed murders, drug trafficking in Sacramento and other California cities, and other criminal acts, while controlling the membership of the AB. Troxell was a leader of the AB and had significant authority over the enterprise, including resolving disputes among members and approving the murder of current or former members.

At the outset of this investigation, the following defendants were prison inmates with Yandell, Troxell, and Sylvester, serving life sentences:

• Travis Burhop, 51, pleaded guilty on Oct. 31, 2022, and is awaiting sentencing.
• Brant Daniel, 49, pleaded guilty and was sentenced to life in prison on Dec. 20, 2023.
• Pat Brady, 53, pleaded guilty on Jan. 3, 2024, and is scheduled for sentencing on May 13, 2024.
• Jason Corbett, 52, pleaded guilty on Jan. 17, 2024, and is scheduled for sentencing on July 15, 2024.

Additional individuals charged in the case include the following:

• Donald Mazza, 53, pleaded guilty on June 15, 2022, and is scheduled for sentencing on May 6, 2024.
• Samuel Keeton, 45, of Menifee, pleaded guilty on Nov. 30, 2020, and is scheduled for sentencing on May 13, 2024.
• Jeanna Quesenberry, 57, of Sacramento, pleaded guilty on Dec. 11, 2023, and is scheduled for sentencing on May 13, 2024.
• Kristin Demar, 49, of Citrus Heights; pleaded guilty on Sept. 12, 2022, and is scheduled for sentencing on May 13, 2024.
• Justin Petty, 42, of Los Angeles, pleaded guilty and on Oct. 16, 2023, was sentenced to 10 years and 10 months in prison.
• Charges are pending against Kevin MacNamara, 44, of La Palma, and Kathleen Nolan, 69, of Calimesa. A status conference for these defendants is set for June 24, 2024. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
• Two previously charged defendants are deceased.

This case is the product of an investigation by the Drug Enforcement Administration with assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office. Assistant U.S. Attorneys Jason Hitt, Ross Pearson, and David Spencer are prosecuting the case.

Yandell, Troxell, and Sylvester are scheduled to be sentenced by Judge Mueller at a date to be set in the future. Defendants Yandell and Sylvester face mandatory life sentences based upon their convictions for murder in aid of racketeering. Defendant Troxell faces a maximum sentence of life in prison based upon his RICO conspiracy conviction.

The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF) program. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF.

FRESNO, Calif. — Andrew Satariano, 43, of Modesto, was sentenced today to 19 years and seven months in prison for possessing with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Sept. 4, 2021, police tried to conduct a traffic stop on a vehicle Satariano was driving. Satariano stopped briefly, let a female out of the car, and then took off at a high rate of speed reaching speeds of up to 100 miles per hour. Satariano collided with several vehicles and the vehicle was disabled. Satariano fled from the car and hid nearby, after which police found and arrested him. Satariano had two loaded handguns, one of which was stolen and had a high-capacity magazine attached. He also had over 850 grams of pure methamphetamine that he was selling. Satariano’s sentence was affected by his extensive criminal history starting in 2001, which included prior convictions for evading police.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Stanislaus County District Attorney’s Office; the Stanislaus County Probation Department; and the Modesto Police Department. Assistant U.S. Attorney Kimberly Sanchez prosecuted the case.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Stanislaus County District Attorney’s Office; the Stanislaus County Probation Department; and the Modesto Police Department. Assistant U.S. Attorney Kimberly Sanchez prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

SACRAMENTO, Calif. — Ronnie Douglas Fleming, 38, of Keyes, was sentenced today to 18 months in prison for one count of passing counterfeit obligations of the United States, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on 10 occasions between March and May 2022, Fleming passed 11 counterfeit United States savings bonds at banks in the Counties of Stanislaus, San Joaquin and other California counties. Fleming received $134,784 for the savings bonds.

This case was the product of an investigation by the U.S. Secret Service. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.

SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment on April 25, 2024, against Michael Andrew Scott, 38, of Fair Oaks, charging him with wire fraud, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed today following Scott’s arrest.

According to court documents, between June 2018 and June 2022, Scott devised a scheme to defraud investors in his company, Trusted Medical Partnership. Scott told investors that either he or Trusted Medical Partnership received purchase orders from various health care providers in Northern California for medical devices but lacked the capital to fulfill the orders. Scott solicited and obtained loans from these investors, and, in exchange, promised them substantial returns in a relatively short time with zero risk. In order to convince some of his victims to lend him money, Scott sent them fabricated copies of these purchase orders. Scott’s victims lent him money on the basis of his false statements, including the fraudulent purchase orders, however, they received little to no returns on their investments. Instead, Scott spent the money on gambling, personal expenses, and payments to prior investors in order to keep the scheme running.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Dhruv M. Sharma is prosecuting the case.

If convicted, Scott faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Murat Kurashev, 37, a Russian national who resided in Sacramento, was sentenced today to 12 years in prison for attempting to provide material support to a designated foreign terrorist organization, U.S. Attorney Phillip A. Talbert announced.

“This sentence holds Kurashev accountable for attempting to provide material support to a designated terrorist organization,” said U.S. Attorney Talbert. “Kurashev’s attempts to provide that material support were not isolated. They took place over a substantial period of time and his intent with those financial transfers was clear. We appreciate the court’s thoughtful consideration of this case and its recognition of the seriousness of Kurashev’s offense. Working with our investigative partners, we will continue to vigorously prosecute those who seek to provide material support to terrorist organizations.”

“The FBI’s mission is clear – to protect the American people and uphold the Constitution. Anyone who provides support to a terrorist organization is a threat to the safety and security of all Americans, both here and abroad,” said Special Agent in Charge Siddhartha Patel of the FBI Sacramento Field Office. “I am grateful for the tireless dedication of FBI and U.S. Attorney’s personnel who are deeply committed to our partnership and ensuring all cases like these are thoroughly investigated and fairly prosecuted.”

According to court documents, Kurashev attempted to provide financial support to Hayat Tahrir al-Sham (HTS), which is designated by the Secretary of State as a foreign terrorist organization that engages in terrorism in Syria. Between July 2020 and February 2021, Kurashev used money transfer services to send approximately $13,000 to two known couriers of an HTS fundraiser. Records obtained from the money transfer services documented multiple transactions from Kurashev to the couriers in Turkey, usually in increments of $1,000. The couriers retrieved the funds often within 24 hours of transfer. Surveillance footage from money transfer businesses captured Kurashev during some of the transactions.

Social media and encrypted mobile messaging discussions between Kurashev and the fundraiser made clear that Kurashev was fully aware of the fundraiser’s violent extremist ideology and participation and work on behalf of HTS. Kurashev stated that he wished he could join the fight in Syria as a mujahideen and regretted that he could only provide financial support. As their conversations showed, Kurashev and the fundraiser believed that providing money in support of the HTS fighters was tantamount to being engaged in violent jihad.

According to court documents, Kurashev followed the fundraiser’s online presence and various social media accounts, which included solicitations for money to purchase military equipment, boots, clothing, firearms, and, in one case, a motorcycle. Forensic analysis of Kurashev’s Apple iCloud account revealed it to be replete with violent extremist content, including a video depicting HTS fighters.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Heiko P. Coppola and Trial Attorney Dmitriy Slavin of the Department of Justice’s Counterterrorism Section prosecuted the case.

FRESNO, Calif. — Elias Soliz, 26, of Madera, was sentenced today to 10 years in prison for distributing fentanyl, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Aug. 3, 2023, Soliz knowingly distributed one fentanyl pill to J.M. in Madera. J.M. suffered a fatal overdose just a few hours later. Law enforcement searched Soliz’ phone under a warrant and found that Soliz had deleted communications with the victim that had been found on the victim’s phone. Law enforcement also located additional evidence of drug dealing.

This case was the product of an investigation by the Drug Enforcement Administration and the Madera Police Department. Assistant U.S. Attorney Antonio J. Pataca prosecuted the case.

This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.

FRESNO, Calif. — Ruben Mireles, 48, of Clovis, was sentenced today to one year in prison for stealing $1.4 million in COVID-19 relief money, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Mireles owned and operated a farm labor contracting business in Kings County. His business initially went by the name Vista Pacific Labor Solutions Inc. (VPLS) and then changed its name to Calzona Ag Management Inc., doing business as Vista Pacific Farm Management (CAM).

In January 2021, after VPLS changed its name to CAM, Mireles caused CAM to apply for and receive a COVID-19 Paycheck Protection Program (PPP) loan for $1.4 million from the Small Business Administration (SBA). Then, in April 2021, Mireles caused VPLS to apply for and receive another PPP loan for $1.4 million from the SBA based on false information.

In the second loan application, Mireles falsely represented to the SBA that VPLS was a separate company from CAM when, in fact, VPLS and CAM were the same company. Mireles also falsely represented that he had not received any other PPP loans, even though he had previously received CAM’s loan. Finally, Mireles falsely represented that he was not subject to any pending criminal charges when he was actually facing state fraud charges.

Based on Mireles’ representations, VPLS’s loan application was approved and the $1.4 million, to which he was not entitled, was deposited into his bank account.

This case was the product of an investigation by the Federal Bureau of Investigation and the SBA Office of Inspector General with assistance from the California Department of Insurance. Assistant U.S. Attorney Joseph Barton prosecuted the case.

This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of five interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.

SACRAMENTO, Calif. — A Mexican national made his initial appearance in federal court in Sacramento on Friday, April 19, 2024, to face charges for fentanyl-pill, cocaine, and methamphetamine trafficking and money laundering, U.S. Attorney Phillip A. Talbert announced.

On March 3, 2022, a federal grand jury returned a superseding indictment against Luis Felipe Lopez Zamora, aka Gordo, 28, formerly of Tijuana, Mexico, and 13 co-defendants, charging them with a variety of fentanyl-pill, cocaine, and methamphetamine trafficking and money laundering crimes. Lopez Zamora was arrested by Mexican authorities on Jan. 2, 2024, on a warrant based on an extradition request, and he remained detained in Mexico pending his extradition. He was extradited from Mexico to the United States on April 18, 2024.

According to court documents, Lopez Zamora was a Tijuana-based source of supply and organizational leader of a Sacramento-based drug trafficking organization (DTO). The leader of the DTO in Sacramento was Lopez Zamora’s brother, co-defendant Jose Lopez-Zamora. From at least May 2019 until January 2021, the DTO was responsible for importing tens of thousands of fentanyl-laced counterfeit oxycodone “M-30” pills from Mexico and distributing them in northern California and elsewhere. The DTO also distributed cocaine and methamphetamine.

Lopez Zamora is charged with one count of conspiracy to distribute and possess with intent to distribute at least 400 grams of a mixture or substance containing fentanyl, cocaine, and at least 50 grams of methamphetamine; two counts of possession with intent to distribute at least 400 grams of a mixture or substance containing fentanyl; and one count of conspiracy to launder money.

Eight defendants have pleaded guilty and six have been sentenced as follows:

• Rudi Jean Carlos pleaded guilty and, on Oct. 11, 2022, was sentenced to 10 years and one month in prison.
• Jason Lamar Lee pleaded guilty and, on Oct. 11, 2022, was sentenced to eight years and seven months in prison.
• Javier Hernandez pleaded guilty and, on Nov. 8, 2022, was sentenced to two years and eight months in prison.
• Christopher Kegan Williams pleaded guilty, and on Dec. 14, 2021, was sentenced to two and a half years in prison.
• Baudelio Vizcarra Jr., pleaded guilty, and on Jan. 24, 2023, was sentenced to two and a half years in prison.
• Mateo Elias Guerrero-Gonzales pleaded guilty and, on Oct. 11, 2022, was sentenced to two years and three months in prison.
• Alejandro Tello pleaded guilty and is scheduled to be sentenced on Sept. 3, 2024.
• Christian Anthony Romero pleaded guilty and is scheduled to be sentenced on July 16, 2024.

Charges are pending against the following defendants: Jose Guadalupe Lopez-Zamora, Leonardo Flores Beltran, Joaquin Alberto Sotelo Valdez, Erika Gabriela Zamora Rojo, Jose Luis Aguilar Saucedo, Rosario Zamora Rojo, and Sandro Escobedo. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the Drug Enforcement Administration, with assistance from Homeland Security Investigations, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the U.S. Postal Inspection Service, the Yuba-Sutter Narcotic and Gang Enforcement Task Force (NET‑5), the California Highway Patrol, the Butte Interagency Narcotics Task Force (BINTF), the Tri-County Drug Enforcement Team (TRIDENT), the Sacramento County Sheriff’s Department, the Sacramento Police Department, the Roseville Police Department, the Manteca Police Department, the Yuba City Police Department, and the West Sacramento Police Department. The Justice Department’s Office of International Affairs worked with Mexican authorities to secure the arrest and extradition of Lopez Zamora. Assistant U.S. Attorney David W. Spencer is prosecuting the case.

If convicted, Lopez Zamora faces a mandatory minimum of 10 years and a maximum statutory penalty of life in prison on each of the drug trafficking counts and a maximum statutory penalty of 20 years in prison on the money laundering conspiracy count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about OCDETF, please visit Justice.gov/OCDETF.

SACRAMENTO, Calif. — Cameron Andrew Garcia, 30, of Dallas, Texas, was sentenced today to 14 years in prison, 10 years of supervised release, and $5,000 in victim restitution for two counts of receipt of visual depictions of minors engaging in sexually explicit conduct, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in 2014-2015, Garcia formed an online relationship with a minor victim from Butte County and instructed the minor victim to send him sexually explicit photos and videos, which the victim did. In 2020, Garcia sent Instagram messages to the same victim, threatening to post sexually explicit images and videos of the victim to public websites unless the victim produced new sexually explicit images and videos for him and sent him money. Garcia also used the Instagram app and the internet in 2020 to communicate with a second minor victim whom he knew was under the age of sixteen and solicited and received multiple videos of that victim engaged in sexually explicit conduct. When this second minor victim was not forthcoming with an additional picture, Garcia again resorted to extortion by threatening to post explicit content of the victim publicly.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Christina McCall prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

FRESNO, Calif. — Antonio Beltran-Chaidez, 54, a Mexican national, pleaded guilty today to possessing with intent to distribute heroin, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in January 2022, Beltran recruited his brother Jose Beltran-Chaidez, 66, a Mexican national residing in Bakersfield, to deliver approximately 2 pounds of heroin to Jorge Calderon-Campos, 43, a Mexican national residing in Bakersfield, for distribution to Calderon-Campos’s customers. However, when Calderon-Campos was unable to sell the drug, Jose Beltran-Chaidez retrieved it from Calderon-Campos and was in possession of the heroin when stopped by a law enforcement officer for a traffic violation.

Beltran is scheduled to be sentenced on Aug. 26, 2024, by U.S. District Judge Jennifer L. Thurston. Beltran faces a mandatory statutory minimum penalty of 10 years and a maximum statutory penalty of life in prison, along with a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Calderon-Campos, Jose Beltran-Chaidez, and two other co-defendants are currently scheduled for a status conference on May 13, 2024. They are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by Homeland Security Investigations and the Drug Enforcement Administration, with assistance from the U.S. Department of Agriculture Office of Inspector General, the U.S. Marshals Service, the U.S. Customs and Border Protection, the U.S. Secret Service, the Bureau of Land Management, the Kern County High Intensity Drug Trafficking Area (HIDTA) Task Force, the CHP, the California Department of Corrections and Rehabilitation, the Kern County Sheriff's Office, the Kern County Probation Department, and the Bakersfield Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.

The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about OCDETF, please visit Justice.gov/OCDETF.

SACRAMENTO, Calif. — Jeremy Michael Benner, 40, of San Diego, was sentenced today to five years in prison to be followed by three years of supervised release for unlawfully dealing in firearms, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between September 2022 and August 2023, Benner sold firearms to a confidential informant on four separate occasions in Vallejo. One of the firearms had previously been reported stolen, and three of them came with extended magazines. Benner did not have a license as a firearms dealer, and as a previously convicted felon would not be qualified to obtain a license.

This case was the product of an investigation by the FBI’s Solano County Violent Crimes Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.  For more information about Project Safe Neighborhoods, please visit Justice.gov/PSN.

The Sacramento Region/San Francisco Bay Area Cross-Jurisdictional Firearms Trafficking Strike Force is one of five cross-jurisdictional strike forces launched by the U.S. Department of Justice in July 2021 to disrupt illegal firearms trafficking in key regions across the country. Each strike force is led by designated U.S. Attorneys, who collaborate with the ATF and with state and local law enforcement partners within their own jurisdiction as well as law enforcement partners in areas where illegally trafficked guns originate. The strike forces use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes, and are an important part of the Department’s Comprehensive Violent Crime Reduction Strategy.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment Thursday against Christian Ceja, 27, of Turlock, charging him with transportation of a minor with intent to engage in criminal sexual activity and receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between Aug. 27, 2023, and Jan. 3, 2024, Ceja transported a minor victim from the Eastern District of California to Idaho with the intent to engage in criminal sexual activity. In addition, Ceja received images of a minor engaging in sexually explicit conduct.

This case is the product of an investigation by the Stanislaus County Sheriff’s Department and Homeland Security Investigations. Assistant U.S. Attorney Shea J. Kenny is prosecuting the case.

If convicted, Ceja faces a mandatory statutory minimum of 10 years in prison and a maximum of life in prison for the most serious charged count, and a $250,000 fine per count, plus up to a lifetime of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

SACRAMENTO, Calif. — David Tran, 36, of Sacramento, pleaded guilty today to money laundering, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between Oct. 18, 2022, and Jan. 11, 2023, Tran conducted multiple financial transactions involving funds he believed to be proceeds of cocaine trafficking. Tran’s belief was based on representations of a confidential informant working with law enforcement. The transactions involved the confidential informant giving Tran purported trafficking proceeds in cash in exchange for cashier’s checks payable to a fake company. Tran retained 10% of the cash as a commission. In total, the confidential informant gave Tran $90,000 in cash and Tran gave the confidential informant $81,000 in cashier’s checks. Tran engaged in the transactions intending to conceal or disguise the nature and source of the purported drug trafficking proceeds.

As part of his plea agreement, Tran agreed to pay the U.S. Small Business Administration approximately $240,000 as restitution for payments he received based on fraudulent applications for funds under the Paycheck Protection Program.

This case is the product of an investigation by the IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.

A sentencing date for Tran has not been set.  Tran is scheduled for a status hearing regarding sentencing before U.S. District Judge Daniel J. Calabretta on Aug. 1, 2024. Tran faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Miguel Obed Romero Reyes, 25, of Sinaloa, Mexico, charging him with possessing over 400 grams of fentanyl with intent to distribute, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Romero conspired with another individual to distribute and possess with intent to distribute over 400 grams of fentanyl. Romero was pulled over by law enforcement officers while driving north on Interstate 5 in Fresno County. Deputies seized a large duffel bag containing 48 pounds (21.8 kilograms) of blue counterfeit M-30 pills in 20 separate 1-gallon Ziploc bags. In total, Romero was transporting over 200,000 fentanyl pills in his car.

This case is the product of an investigation by the Fresno County Sheriff’s Office and Homeland Security Investigations. Assistant U.S. Attorney Cody S. Chapple is prosecuting the case.

If convicted, Romero faces a statutory minimum of 10 years with a statutory maximum of life in prison, and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — The grand jury today indicted Edwin Alonso Cuadros Bravo, 54, and Yulisa Alexsandra Guevara Wintong, 49, both formerly residing in Sacramento, charging them with interstate and international kidnapping and kidnapping conspiracy, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in November 2021, Cuadros Bravo and Guevara Wintong abducted their six-year-old grandchild from Sacramento and took the victim to Peru. Despite pleading from the mother, Cuadros Bravo and Guevara Wintong did not return the victim to the United States. Cuadros Bravo and Guevara Wintong were initially charged by criminal complaint in February 2022. In December 2022, the victim was returned to Sacramento as a result of government intervention. On April 10, 2024, Cuadros Bravo appeared for the first time in federal court in Sacramento.

Cuadros Bravo was detained following his first appearance and he remains in custody. Guevara Wintong has not yet appeared to answer the charges against her.

This case is the product of an investigation by the Federal Bureau of Investigation, with assistance from the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Veronica M.A. Alegría is prosecuting the case.

If convicted, Cuadros Bravo and Guevara Wintong face a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Wayne Lee Hauzer, 59, of Tracy, was sentenced today to 29 years in prison and a $10,000 fine for distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in April 2022, Hauzer engaged in a private chat via Kik messenger with an undercover federal agent who Hauzer believed to be a 13-year-old girl. During the conversation, Hauzer sent the undercover agent videos of children engaged in sexually explicit conduct. Hauzer was a registered sex offender at the time of this offense and is subject to an enhanced statutory penalty because he had prior federal convictions for enticement of a minor, attempted enticement of a minor, and distribution of child pornography.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Shelley D. Weger and Jessica L. Delaney prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

SACRAMENTO, Calif. — Robert Kirby Wells, 64, of Woodland, was sentenced today to two years in prison for aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Wells served as an insurance broker for a company located in Denver, Colorado, that owned multifamily and commercial properties throughout the United States. Wells was responsible for obtaining several types of insurance coverage for the company’s properties, including umbrella liability coverage. Wells fraudulently represented to the company that he obtained umbrella coverage for properties when, in fact, he did not. Wells then invoiced and was paid for purported premiums associated with the umbrella liability policies that he had never obtained.

At times, after Wells received full payment for premiums associated with coverage he obtained for the company, as well as umbrella coverage he did not obtain, Wells secured loans purportedly to pay for the same premiums. He did so by falsely representing that he was financing the premiums on the company’s behalf and using the identities of a managing principal and employee of the company without their authorization.

This case was the product of an investigation by the Federal Housing Finance Agency Office of Inspector General, the Department of Housing and Urban Development Office of Inspector General, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Matthew Thuesen prosecuted the case.

SACRAMENTO, Calif. — Louis Donald Mendonsa, 61, of Sacramento, pleaded guilty today to distributing child pornography over the dark web, U.S. Attorney Phillip A. Talbert announced.

According to court documents, beginning by 2021 and continuing until his arrest on Nov. 29, 2022, Mendonsa was a global moderator or administrator on at least four Tor (The Onion Router) websites dedicated to the sexual exploitation of children and the dissemination of child pornography. As a moderator or administrator, Mendonsa created new topics and forums within the websites, managed and commented on other users’ posts, shared and enforced the rules, and distributed child pornography by uploading images and videos within the websites. When law enforcement officers arrested Mendonsa in Sacramento he was found to be in possession of an external hard drive containing over 11,000 images and videos of child pornography.

This case is the product of an investigation by the U.S. Department of Justice Child Exploitation and Obscenity Section, Homeland Security Investigations, the Sacramento County Sheriff’s Office, and the Sacramento Police Department. Department of Justice Trial Attorney Kaylynn Foulon and Assistant U.S. Attorney Emily G. Sauvageau are prosecuting the case.

Mendonsa is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on July 18, 2024. Mendonsa faces a minimum statutory penalty of 15 years in prison and a maximum of 40 years in prison each for count of distributing child pornography, and between 10 and 20 years  in prison for possession child pornography. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

SACRAMENTO, Calif. — Stephen Joseph Crittenden, 44, of Suisun City, pleaded guilty today to bribery concerning programs receiving federal funds, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Crittenden was a California Department of Corrections and Rehabilitation correctional officer at the California Medical Facility in Vacaville. From 2021 through 2023, he accepted bribes, totaling more than $45,000, from inmates to smuggle cellphones into the California Medical Facility.

Crittenden is scheduled to be sentenced on Sept. 12, 2024, by U.S. District Judge Troy L. Nunley. Crittenden faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the Federal Bureau of Investigation, with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.

SACRAMENTO, Calif. — Charles Dean Good, 55, of Stockton, pleaded guilty today to one count of theft of government property and one count of aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Good stole hundreds of thousands of dollars in postage stamps from the U.S. Postal Service by passing counterfeit checks in the names of identity-theft victims. He passed the bad checks at numerous post offices in Sacramento and San Joaquin Counties. In connection with the postage-stamp-theft scheme, Good possessed and used the name and California Driver’s License number of at least one identity-theft victim. Between Feb. 2, 2012, and Jan. 18, 2019, he passed at least 1,326 bad checks, for a total loss to the U.S. Postal Service of at least $252,631.

This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.

Good is scheduled to be sentenced by U.S. District Judge John A. Mendez on Sept. 10, 2024. Good faces a maximum statutory penalty of 10 years in prison for the theft of government property count, a mandatory consecutive two-year term in prison for the aggravated identity theft count, and up to a $250,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.