Eastern District of California

SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment earlier in December against Elmer Yusay Ngo, 28, of Stockton, charging him with one count of attempted sexual exploitation of a minor, four counts of attempted coercion and enticement of minors, and one count of possession of child pornography, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed following Ngo’s arrest.

According to court documents, Ngo utilized social media to sexually exploit female minors nationwide. This sexual exploitation included attempting to coerce, entice, and persuade the minors to produce child pornography for Ngo. Ngo also possessed child pornography on his cellphone.

The FBI Sacramento Field Office is seeking to identify potential victims of Elmer Ngo. To assist the investigation and receive information regarding resources available to victims, please complete this questionnaire to the best of your ability: https://forms.fbi.gov/elmer_ngo/

This case is the product of an investigation by the Federal Bureau of Investigation and the Internet Against Crimes Against Children Task Force with assistance from state and local police departments nationwide. Assistant U.S. Attorney Kristin F. Scott is prosecuting the case.

If convicted, Ngo faces 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 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. — Michael Valentino Lovato, 34, of Sacramento, pleaded guilty today to conspiracy to distribute fentanyl and methamphetamine and distribution of methamphetamine, U.S. Attorney Phillip A. Talbert announced. 

According to court documents, in April 2022, Lovato engaged in a conspiracy to distribute fentanyl and methamphetamine in Sacramento. During the conspiracy, Lovato sold fentanyl pills to a law enforcement source on multiple separate occasions. He also sold 4 pounds of methamphetamine to the source.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Sacramento Police Department. Assistant U.S. Attorney Emily G. Sauvageau and Special Assistant U.S. Attorney Matthew De Moura are prosecuting the case.

U.S. District Judge Troy L. Nunley is scheduled to sentence Lovato on March 28, 2024. Lovato faces a minimum statutory penalty of 10 years in prison, a maximum penalty of life in prison, and a $10 million fine on 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.

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.

SACRAMENTO, Calif. — Tyrone Anderson, 43, of Sacramento, pleaded guilty today to one count of conspiracy to traffic at least 5,000 grams of cocaine and 280 grams of cocaine base and one count of conspiracy to traffic heroin, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Anderson is among the 15 federal defendants arrested in 2021 and charged in a 45-count indictment for trafficking narcotics as part of a DEA-led multi-agency operation targeting cocaine and heroin traffickers in North Sacramento. Anderson was intercepted during wiretaps in 2018 and 2019 trafficking kilograms of cocaine and heroin and was arrested in possession of two firearms.

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 U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Forest Service, the U.S. Postal Inspection Service, the Bureau of Land Management, the California Department of Corrections and Rehabilitation, the California Department of Justice, the California Highway Patrol, the Sacramento County Sheriff’s Office, and the Sacramento Police Department. Assistant U.S. Attorneys Cameron L. Desmond and Aaron D. Pennekamp are prosecuting the case.

Anderson is scheduled to be sentenced on March 7, 2024, by U.S. District Judge Troy L. Nunley. Anderson faces at least 10 years and a maximum of life in prison and 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.

On March 16, 2023, Arlington Caine, 48, of Rio Linda, was sentenced to 22 months in prison on two counts of using a communication facility to facilitate a drug trafficking offense.

On Dec. 8, 2022, Michael Hampton, 57, of Vallejo, was sentenced to 60 months in prison for to conspiracy to distribute and possess with intent to distribute at least 500 grams of cocaine.

On Nov. 17, 2022, Charles Carter, 36, of Sacramento, was sentenced to 70 months in prison for conspiracy to distribute and to possess with intent to distribute at least 500 grams of cocaine.

On Sept. 29, 2022, Jason Tolbert, 45, of Sacramento, was sentenced to 57 months in prison for possession with intent to distribute cocaine.

On Feb. 22, 2023, Dwight Haney, 52, of Sacramento pleaded guilty to two counts of using a communication facility to facilitate a drug trafficking offense. Haney is scheduled to be sentenced on Feb. 8, 2024.

On Jan. 26, 2023, Jerome Adams, 56, of North Highlands, pleaded guilty to two counts of using a communication facility to facilitate a drug trafficking offense. Adams is scheduled to be sentenced on Jan. 18, 2024.

On Dec. 1, 2022, Bobby Conner, 51, of Sacramento, pleaded guilty to two counts of using a communication facility to facilitate a drug trafficking offense. Conner is scheduled to be sentenced on Jan. 18, 2024.

On Nov. 17, 2022, Andre Hellams, 40, of North Highlands, pleaded guilty to two counts of using a communication facility to facilitate a drug trafficking offense. Hellams is scheduled to be sentenced on Feb. 8, 2024.

Charges are pending against the following defendants: Maurice Bryant, 51, of Antelope; Yovanny Ontiveros, 41, of Sacramento; Alex White, 61, of North Highlands; Steven Hampton, 61, of Sacramento; Wilmer Harden, 52, of Elk Grove; and Mark Martin, 62, of Sacramento. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. The Sacramento Strike Force is a co‑located model that enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

SACRAMENTO, Calif. — Frank Jonathan Guzman, 31, of Stockton, was sentenced Tuesday to 10 years in prison for conspiracy to distribute heroin and fentanyl and possession with intent to distribute heroin and fentanyl, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between November 2018 and December 2019, Guzman and co‑defendant Jose Cruz Ivan Aispuro, 38, of Stockton, conspired to distribute and possess with intent to distribute at least 1 kilogram of heroin and at least 400 grams of counterfeit pharmaceutical pills containing fentanyl. As part of this conspiracy, on three occasions Guzman sold heroin to an undercover agent and another person and also sold 500 counterfeit oxycodone pills containing fentanyl to the undercover agent. Agents executed a search warrant at Guzman’s residence in Stockton and seized approximately 10,000 counterfeit oxycodone pills containing fentanyl and 2.8 kilograms of heroin.

This case is the product of an investigation by the Drug Enforcement Administration with assistance from the U.S. Marshals Service and the San Joaquin Metropolitan Drug Task Force. Assistant U.S. Attorney David W. Spencer is prosecuting the case.

On Sept. 26, 2023, Aispuro pleaded guilty to conspiracy to distribute heroin and fentanyl and distribution of fentanyl. Aispuro is scheduled to be sentenced by U.S. District Judge John A. Mendez on Jan. 9, 2024.

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. — Deborah Gwen Orrey, 54, of Anderson, was sentenced Tuesday to 18 months in prison for making and subscribing a false tax return, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Orrey was the owner and operator of Affordable Tax, Bankruptcy, and Bookkeeping. For tax years 2013 to 2016, Orrey submitted tax returns to the Internal Revenue Service that contained incorrect information including, education credits, inflated medical expenses, and other inflated or non-existent business expenses. Orrey owed to the IRS an additional $112,083 for these years. Orrey also willfully falsified information on tax returns that she filed on her clients’ behalf. She split the refunds due to her clients without their knowledge, causing a portion of the clients’ refunds to be deposited to her own bank account. Eight of her clients suffered an actual loss of a total of $3,729. Orrey was ordered to pay $115,362 in restitution, which is the total loss to the IRS.

This case was the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Denise N. Yasinow prosecuted the case.

SACRAMENTO, Calif. — Terence Aubrey Larker, 37, of Las Vegas, previously of Sacramento, was sentenced Tuesday to four years and 10 months in prison for mail fraud and aggravated identity theft in a scheme to defraud the Unemployment Insurance benefit program during the COVID-19 pandemic, U.S. Attorney Phillip A. Talbert announced.

According to court documents, beginning in April 2020, and continuing through at least October 2020, Larker perpetrated a mail fraud and identity theft scheme that targeted the Unemployment Insurance benefit program that California administers through its Employment Development Department (EDD). Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act and the Pandemic Unemployment Assistance program, EDD was responsible for administering unemployment insurance benefits for qualifying residents who could no longer find employment due to the COVID-19 pandemic. Larker obtained the personally identifiable information (PII) of more than 80 individuals and filed fraudulent unemployment insurance benefit claims under their identities. EDD approved many of these applications and mailed benefits in the form of prepaid debit cards to addresses under Larker’s control, including at least 24 to his home address in Sacramento. Once received in the mail, he activated the cards and spent the benefits on himself, often appearing in ATM surveillance footage taking out large amounts of cash from these cards. In total, Larker’s conduct resulted in EDD and the United States paying out over $1.1 million in fraudulent claims.

“Terence A. Larker used stolen identities to submit fraudulent unemployment insurance claims to obtain over $1 million in benefits allocated for workers who lost their jobs as a result of the global pandemic. This sentence demonstrates the Office of Inspector General’s continued commitment to safeguard the Unemployment Insurance system,” said Quentin Heiden, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor, Office of Inspector General.

This case was the product of an investigation by the Department of Labor-Office of Inspector General, the California Employment Development Department, the Department of Homeland Security-Office of Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Denise N. Yasinow prosecuted the case.

This case was prosecuted as part of the California COVID-19 Fraud Enforcement Strike Force, one of five interagency COVID-19 fraud strike force teams established by the Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California. The strike forces focus on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces are interagency law enforcement efforts, using prosecutor-led and data analyst-driven teams designed to identify and bring to justice those who stole pandemic relief funds.

FRESNO, Calif. — The City of Fresno has agreed to resolve findings of violations of the Americans with Disabilities Act (ADA) at the Fresno Amtrak intercity rail station, U.S. Attorney Phillip A. Talbert announced today.

The rail station, located at 2650 Tulare Street, is owned by the City of Fresno, and serves passengers using trains to reach destinations up and down the San Joaquin Valley.

Under the agreement announced today, the city made accessibility modifications to exterior and interior portions of the station, including repairs to curb ramps, the waiting room, and the station’s restrooms. This agreement is part of a nationwide effort by the Department of Justice to improve accessibility at the nation’s rail stations. In 2020, the Department of Justice also entered into a nationwide settlement with Amtrak regarding ADA compliance at its stations.

“This agreement is a part of the Department of Justice’s ongoing efforts to bring entities that own or operate intercity rail stations into compliance with the ADA,” U.S. Attorney Talbert said. “Our office is pleased these changes have been made and will continue seeking to ensure that conditions at the station afford equal access to transportation, including as future remodeling takes place.”

This investigation was handled by Assistant U.S. Attorney Emilia P. E. Morris. The U.S. Attorney’s office for the Eastern District of California is committed to investigating alleged violations of the ADA. Individuals who believe they may have been victims of discrimination may file a complaint in writing with the U.S. Attorney’s Office, online at www.ada.gov, or by calling the Department of Justice’s toll-free ADA information line at 800-514-0301 or 833-610-1264 (TTY).

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FRESNO, Calif. — Lorene Deanda, 64, of Ceres, was sentenced today to three years and one month in prison, to be followed by three years of supervised release, in relation to her stealing more than $550,000 from recipients of Social Security and other benefit funds, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Deanda was employed by a charitable organization in Modesto and managed the organization’s representative payee program. This program assisted recipients of Social Security and other federal and state benefits who could not physically manage their own financial affairs. Deanda, on behalf of the charitable organization, would set up bank accounts for the beneficiaries and receive benefit funds into those accounts. Deanda’s duties included paying beneficiaries’ bills and necessities from those accounts. However, from 2003 to May 2015, Deanda stole benefit funds from the accounts and spent the money on her own personal expenses, including paying for her personal credit card bills and residential mortgage. Deanda stole a total of more than $550,000.

This case was the product of an investigation by the Social Security Administration Office of the Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorneys Henry Z. Carbajal III and Brittany M. Gunter prosecuted the case.

FRESNO, Calif. — Miguel Leyva, 36, of Wasco, pleaded guilty today to conspiracy to commit bank fraud and aggravated identity theft charges for his role in a long-running credit card fraud scheme, U.S. Attorney Phillip A. Talbert announced.

According to court records, between February 2016 and August 2022, Leyva and his partner and co-defendant, Karina Arceo, stole the personally identifiable information (PII) for more than 125 victims. They stole much of the PII from patient files at health care providers in Kern County where Arceo worked.

According to court documents, Leyva and Arceo used the stolen PII to open thousands of fraudulent credit cards in the victims’ identities. They used false identification documents to open the credit cards and provided billing addresses, phone numbers, and email addresses over which they had control so that any communications related to the credit cards would go to them instead of the victims. They then made hundreds of thousands of dollars in fraudulent purchases on the credit cards in Kern County and elsewhere. The fraudulent purchases included home appliances, automobile accessories, designer clothing, tickets to concerts and sporting events, and travel, among other items.

Often times, Leyva and Arceo resold the items that they fraudulently purchased for cash and reaped a windfall because they did not actually pay for the items. They also used checks that had been stolen from companies in Kern County to access the companies’ bank accounts and make fraudulent payments towards the credit cards so as to keep their scheme going. Altogether, their scheme caused a total actual loss of more than $825,000.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.

Leyva is scheduled to be sentenced on April 1, 2024. He faces a maximum penalty of 30 years in prison and $250,000 fine for the conspiracy charge, and a mandatory two years in prison, consecutive to other counts, for the identity theft charge. 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.

Charges of conspiracy to commit bank fraud and aggravated identity theft are pending against Arceo. The charges are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Marcus Tatum, 31, of Bakersfield, pleaded guilty today to receipt and distribution of child sexual abuse material, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between February 2012 and March 2018, Tatum used a laptop computer to knowingly receive and distribute over 600 files containing visual depictions of children engaging in sexually explicit conduct. The files contained images of children under the age of 12 engaging in sexually explicit conduct, as well as engaging in sado-masochistic conduct.

This case is the product of an investigation by the Kern County Sheriff’s Office, the Federal Bureau of Investigation, and Homeland Security Investigations. Assistant U.S. Attorney Brittany M. Gunter is prosecuting the case.

Tatum is scheduled to be sentenced on April 1, 2024. Tatum faces a mandatory minimum penalty of five years in prison and 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.

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. — Angelo Jackson Mendiver, 27, of Bakersfield, a campus security supervisor at Arvin High School, pleaded guilty today to conspiring to engage in manufacturing and dealing in explosive materials and mailing explosive devices, as well as making false statements to FBI agents, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Mendiver used an Instagram account to sell explosives and explosive materials and worked closely with a male juvenile Bakersfield high school student to fulfill transactions and send explosives in the mail to residents of other states. On June 1, 2023, a federal search warrant executed at Mendiver’s residence resulted in the seizure of approximately 500 pounds of explosives and explosive materials. Agents seized another 500 pounds of explosives and explosive materials from the juvenile’s residence. At both residences, agents found other items used to make explosives.

In one Instagram message to the juvenile, Mendiver sent a photo of titanium salute, an explosive device, followed by two videos he took of homemade explosive devices that he had made and the statement that “homemade kills all consumer.”

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

Mendiver is scheduled for sentencing on April 1, 2024. He faces a maximum statutory penalty of five years in prison and a $250,00 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.

SACRAMENTO, Calif. — The former CEO of a Sacramento non-profit was arrested today, U.S. Attorney Phillip A. Talbert announced.

On Nov. 16, 2023, a federal grand jury returned an indictment against Richard Alan Abrusci, 45, of South Lake Tahoe, charging him with nine counts of wire fraud, one count of aggravated identity theft, and three counts of monetary transactions with proceeds of specified unlawful activity. The indictment was unsealed after the arrest.

According to court documents, in 2014, Abrusci began working at a non-profit organization that operates a chain of retail stores in California and Nevada. Abrusci became the Chief Operating Officer of the organization in 2016 and its president and CEO in 2018.

From 2016 through 2021, Abrusci fraudulently caused the non-profit organization and one of its subsidiaries to pay approximately $1.4 million to Resolution Arrangement Services (RAS). RAS consisted of nothing more than a fictitious business name that Abrusci registered in 2008 and a bank account that he opened the same year. Abrusci caused the fraudulent payments into the RAS bank account that he controlled by using various false documents, including invoices and purchase orders. In one instance, Abrusci used a forged letter purporting to be from an attorney representing the non-profit organization to convince the organization’s CFO to pay RAS $55,000 under false pretenses related to a lawsuit.

The payments to RAS were supposedly for information-technology services, helping to facilitate settlement of a lawsuit, and assisting the non-profit organization in running call centers for the State of California during the COVID-19 pandemic. In fact, RAS provided none of the services for which it billed the non-profit organization and its subsidiary.

This case is the product of an investigation by IRS-Criminal Investigation. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.

If convicted, Abrusci faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each of the nine counts of wire fraud.  Additionally, he faces a maximum statutory penalty of 10 years in prison and a fine of $250,000 for each of the three counts of monetary transactions with proceeds of specified unlawful activity.  Finally, he faces a consecutive two years in prison for the aggravated identity theft. 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.

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SACRAMENTO, Calif. — Eric Terrell Christian, 32, of Vacaville, was sentenced today to 10 years in prison for being a felon in possession of firearms, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on July 21, 2022, Christian failed to yield during a traffic stop and sped away from the officer. Moments later, a witness called 911 and reported seeing a firearm in a parking lot that Christian had just driven through. On Aug. 11, 2022, Christian fled again when officers attempted to stop him for a related parole violation. He fled on foot from his car but was quickly apprehended. In his vehicle, officers located a Glock handgun with a round in the chamber and another 17 rounds in an inserted high-capacity magazine. Christian was also found to be in possession of a Palmetto Arms AR-style pistol with a round in the chamber and 36 additional rounds in an inserted, high-capacity magazine. Christian is not allowed to possess firearms because he has previously been convicted of three felony offenses, including two convictions for assault with a deadly weapon. Christian was on parole from his second assault conviction when he committed the current offense.

This case was the product of an investigation by the Vacaville Police Department, the California Department of Corrections and Rehabilitation – Division of Adult Parole Operations, the Solano County District Attorney’s Office, 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.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Khursheed Haider, 48, of Roseville, charging him with distribution of child pornography and possession of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Haider, a Sacramento Area pulmonologist, used an application called Wire to post, distribute, and request child pornography that included videos and images of prepubescent boys and girls being sexually abused. After a search warrant was executed, agents discovered additional prepubescent child sexual abuse material on one or more of Haider’s electronic devices.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Alexis Klein is prosecuting the case.

If convicted of distribution of child pornography, Haider faces a mandatory minimum sentence of five years in prison, a maximum statutory penalty of 20 years in prison, a lifetime of supervised release, restitution, and a $250,000 fine. If convicted of possession of child pornography, Haider faces a maximum statutory penalty of 20 years in prison, a lifetime of supervised release, restitution, 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.

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.

FRESNO, Calif. — Gary Lee Briggs, 66, of Fresno, was sentenced today to 30 years in prison, to be followed by a lifetime of supervised release, for receipt and distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Jan. 3, 2020, a concerned citizen reported to law enforcement that Briggs appeared to be trying to lure an eight-year-old boy into Briggs’s apartment in Fresno. When officers confronted Briggs, he reported that he planned to test his ability to withstand urges that attracted him to the boy. Briggs also admitted that Facebook recently had terminated his account for having transmitted sexually explicit material on that platform. Facebook separately had notified the National Center for Missing & Exploited Children that Briggs’s Facebook account had been used to transmit sexually explicit images of minors from August through December 2019.

This case was the product of an investigation by the Central Valley Internet Crimes Against Children Task Force, specifically the Fresno Police Department, the Fresno County Sheriff’s Office, and Homeland Security Investigations. Assistant U.S. Attorney David 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 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.

FRESNO, Calif. — Jeffrey Michalk, 44, of Fresno, was sentenced today to three years and nine months in prison for conspiracy, theft of public money, and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between June 2020 and January 2022, Michalk worked with Fresno residents Steve Gomez, 41, and Michael Dugan, 49, to cash counterfeit U.S. Treasury checks throughout the Central Valley. The criminal conduct included approximately 264 fraudulent checks, and a loss amount of over $500,000. The trail of counterfeit checks spanned different counties and involved checks forged to be made payable to the defendants and others.

“Today’s sentence is a reminder that the Treasury Inspector General for Tax Administration is committed to aggressively investigating those who commit financial crimes impacting the tax administration and victimizing the citizens of our communities,” stated Special Agent in Charge Rod Ammari. “This case demonstrates the investigative capabilities and dedication of Treasury Inspector General for Tax Administration special agents. The Treasury Inspector General for Tax Administration is committed to protecting the financial infrastructure of the United States by pursuing individuals that abuse the tax administration to further their identity theft schemes.”

This case is the product of an investigation by the Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Henry Z. Carbajal III is prosecuting the case.

Gomez and Dugan have also pleaded guilty and are scheduled to be sentenced on Jan. 29, 2024, and Feb. 26, 2024, respectively. They face a maximum statutory penalty of five years in prison and a $250,000 fine for the conspiracy charge, a maximum statutory penalty of 10 years in prison and a $250,000 fine for the theft of money charge, and a mandatory minimum consecutive two years in prison for the aggravated identity theft charges.

FRESNO, Calif. — Christopher Contreras, 29, of Fresno, pleaded guilty today to one count of attempted coercion of a minor and one count of enticement of a minor, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Contreras used the messaging application Skout, text messages and Snapchat to engage in sexually explicit communications for approximately one week with a person he believed to be a 13-year-old female. He then traveled to a location in Fresno on July 31, 2020, to meet the purported minor for sexual activity. He was actually communicating with undercover law enforcement investigators. They arrested Contreras and booked him into the Fresno County Jail where he was released on bail.

On Oct. 13, 2020, law enforcement officers responded to a call about a missing juvenile. An investigation confirmed that Contreras picked the juvenile up at a location in Fresno after making arrangements through messages on the Meet Me application. Contreras was arrested for numerous felony violations of California law and booked again at the Fresno County Jail. He was later charged federally in this case and has been in federal custody since June 10, 2021.

Contreras is scheduled to be sentenced on April 1, 2024. He faces a maximum statutory penalty of life in prison and up to a life term of supervised release for each of the two counts. 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 Central California Internet Crimes Against Children Task Force, specifically Homeland Security Investigations with assistance from the Fresno County Sheriff’s Office and the Fresno Police Department. Assistant U.S. Attorney David L. Gappa is prosecuting 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 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.

FRESNO, Calif. — Kevin James Strutz, 52, of Ceres, was sentenced today to three years and four months in prison, to be followed by three years of supervised release, for cyberstalking, U.S. Attorney Phillip A. Talbert announced. In addition, Strutz was ordered to pay $1773 in restitution.

According to court documents, Strutz secretly made a video recording of an adult female who stayed as an Airbnb tenant at the residence where Strutz was living in Ceres in February 2020. The victim ended her stay at the residence when she discovered a message on a cellphone that Strutz had left in a shared bathroom. Over the next several months, Strutz continued to contact the victim through multiple Facebook accounts. The messages became increasingly aggressive, and one included an image of the victim exiting a shower at the Airbnb residence that had been taken without her knowledge or consent. Strutz sent the image to her with a demand that she send him a sexually explicit video or he would send the photo to her friends and family.

Investigators later learned that between September 2018 and December 2018, Strutz had also sent a series of electronic messages and handwritten letters to a second female victim. Strutz left 15 handwritten letters on the victim’s vehicle, many of which contained threats designed to coerce the victim into engaging in sexual acts with Strutz. He also sent messages to the victim from five different Facebook accounts and attempted to contact the victim using phone calls and messages.

This case was the product of an investigation by the Federal Bureau of Investigation with assistance from the Ceres Police Department. Assistant U.S. Attorney David Gappa prosecuted the case.

SACRAMENTO, Calif. — Sacramento residents Viliami Mosese Fatukala, 40; Quynhmy Quoc Yamamoto, 34; Iris June Micu Mina, 38; and John Phillip Hollis II, 45, were sentenced this week for conspiring to distribute or possessing with intent to distribute cocaine, U.S. Attorney Phillip A. Talbert announced.

Fatukala was sentenced to five years in prison; Yamamoto was sentenced to 15 months in prison, and Hollis was sentenced to a year in prison. Mina received a time-served sentence.

According to court documents, beginning in July 2019, Fatukala, Yamamoto, and Mina conspired to sell cocaine. Fatukala advertised the sale of cocaine on the dark web. Yamamoto and Mina assisted Fatukala by, among other things, packaging the cocaine and mailing it to customers. All told, the conspirators sold approximately 13.7 kilograms of cocaine over the dark web. Some of the conspirators’ cocaine was supplied by Hollis, who was stopped by law enforcement on Dec. 19, 2019, and found with a kilogram of cocaine in his vehicle.

This case was the product of an investigation by the Northern California Illicit Digital Economy (NCIDE) Task Force, which 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. 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. Assistant U.S. Attorney Aaron D. Pennekamp prosecuted the case.

FRESNO, Calif. — Christos Mavrokelos was arrested Thursday on a criminal complaint charging him with using debit card skimming devices on bank ATMs to steal victims’ debit card information and making unauthorized cash withdrawals on their accounts, U.S. Attorney Phillip A. Talbert announced.

According to court records, in 2022, police departments recovered multiple debit card skimming devices from bank ATMs. Mavrokelos’ fingerprints were found on the skimming devices. Then, in January and February 2023, Mavrokelos was connected by bank surveillance footage to seven instances at a bank in Clovis where unauthorized cash withdrawals totaling thousands of dollars were made using victims’ debit cards.

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Clovis, Fresno, and Madera Police Departments, as well as the California Department of Justice. Assistant U.S. Attorneys Joseph Barton and Cody Chapple are prosecuting the case.

If convicted, Mavrokelos faces a maximum statutory penalty of 10 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 and Mavrokelos is presumed innocent until and unless proven guilty beyond a reasonable doubt.

mavrokelos_criminal_complaint.pdf

FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Jia Bei Zhu, aka Jesse Zhu, Qiang He, and David He, 62, a citizen of China who formerly resided in Clovis, charging him with distributing adulterated and misbranded medical devices in violation of the federal Food, Drug, and Cosmetic Act and for making false statements to the Food and Drug Administration (FDA), U.S. Attorney Phillip A. Talbert announced.

According to court documents, between January 2020 and March 2023, through the companies Universal Meditech Incorporated (UMI) and Prestige Biotech Incorporated (PBI), Zhu sold hundreds of thousands of COVID-19 test kits to companies throughout the United States. UMI and PBI were based in Fresno and Reedley and did not obtain pre-market approval, pre-market clearance, emergency use authorization, or other applicable exemption from the FDA as was required. UMI and PBI received millions of dollars for the sales of the test kits.

When questioned by FDA officials, Zhu made several false statements to them, including that (1) his name was Qiang “David” He, (2) he was hired by UMI as a COVID-19 consultant in 2021, (3) he was hired by PBI just a couple of weeks prior to meeting with the FDA to communicate with government agencies on PBI’s behalf, and (4) he did not know anything about the manufacturing or distribution histories for UMI or PBI.

This case is the product of an investigation by the FDA Office of Criminal Investigations with assistance from the Federal Bureau of Investigation and the California Department of Public Health – Food and Drug Branch. Assistant U.S. Attorneys Joseph D. Barton, Arelis M. Clemente, and Henry Z. Carbajal III are prosecuting this case.

If convicted, Zhu faces a maximum statutory penalty of three years in prison and a $250,000 fine for the adulterated and misbranding of medical devices charges, and five years in prison and a $250,000 fine for the false statements charge. 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. — Cristian Ortiz Coronado, 31, a resident of Mexico, was arraigned today on a six-count indictment charging him with kidnapping, hostage taking, and transporting illegal aliens, U.S. Attorney Phillip A. Talbert announced. Coronado was indicted on November 9 by a federal grand jury.

According to court documents, Ortiz Coronado was hired to deliver a family to Fresno on Aug. 25, 2023 after they illegally crossed the border from Mexico. When Ortiz Coronado picked the family up, including a mother, her four-year-old daughter, and her nine-year-old son, he locked the doors and would not let them leave the vehicle. Ortiz Coronado then demanded an additional $21,000 from relatives before he would release the family, including children, in Fresno. When relatives did not have the money and tried to block Ortiz Coronado from driving away, Ortiz Coronado rammed first a relatives’ vehicle and then the father of the children before driving away with the mother and her nine-year-old son, leaving the four-year-old behind.

This case is the product of an investigation by the Fresno Police Department, the Federal Bureau of Investigation, and Homeland Security Investigations. Assistant U.S. Attorneys Stephanie Stokman and Robert Veneman-Hughes are prosecuting the case.

If convicted, Ortiz Coronado faces a maximum statutory penalty of life in prison and a $3 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.

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. — A federal grand jury returned a three-count indictment today against Joshua Ruic Kimball, 40, of Bakersfield, charging him with trafficking in firearms, unlawful transfer of firearms in violation of the National Firearms Act, and unlawful transfer of firearms in violation of state law, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Kimball was the owner of Show Off Sports LLC, a licensed firearms dealer in Bakersfield. Through his shop, Kimball sold firearms illegally, including short-barrel rifles and silencers. He did not require background checks, firearms registration, or any paperwork for the firearms sales. More than 100 firearms traced back to Kimball have been recovered in connection to crimes in California, Nevada, Arizona, and Mexico.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorneys Robert L. Veneman-Hughes and Stephanie M. Stokman are prosecuting the case.

If convicted, Kimball faces a maximum statutory penalty of 15 years in prison for trafficking in firearms, 10 years in prison for unlawfully transferring firearms in violation of the National Firearms Act and five years in prison for unlawfully transferring firearms in violation of state law, and a fine up to $250,000 for each 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.

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. — A federal grand jury returned a one-count indictment today against James Escandon, 39, of Bakersfield, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Oct. 18, 2023, Escandon was found in possession of a stolen semi-automatic handgun. Escandon has prior convictions for being a felon in possession of a firearm and for possession of a controlled substance and is prohibited from possessing guns and ammunition.

This case is the product of an investigation by the Bakersfield Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Arin C. Heinz is prosecuting the case.

If convicted, Escandon faces a maximum statutory penalty of 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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 Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

SACRAMENTO, Calif. — Bruce Lamont Walker, 55, of Vallejo, was sentenced today to five years and four months in prison for being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Walker was convicted in 2014 for a domestic violence offense and sentenced to 11 years in prison. Walker had only been on parole for three months when a parole search resulted in the discovery of an AR‑15 style “ghost gun” (privately made without a serial number) in his bedroom. Also found was an extended magazine with 27 rounds of ammunition. Walker is prohibited from possessing firearms or ammunition on account of seven prior felony convictions, including two felony crimes of violence and multiple firearms related felonies.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the California Department of Corrections and Rehabilitation – Division of Adult Parole Operations, the Solano County District Attorney’s Office, the Solano County Sheriff’s Office, the Solano County Sheriff’s Enforcement Team, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.

This case was 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. — Nor-Cal Pharmacies Inc., doing business as Lockeford Drug, and pharmacist/owner Lawrence Howen have agreed to pay $1 million in penalties to resolve allegations of violations of the Controlled Substances Act, U.S. Attorney Phillip A. Talbert announced.

In the settlement announced today, the defendants agreed to the entry of a permanent injunction against them that permanently bars them from dispensing controlled substances, owning a company that dispenses controlled substances, or employing another person that dispenses controlled substances.

The injunction, signed by U.S. District Judge Ana de Alba today, includes findings that the defendants knew or deliberately ignored that they were dispensing controlled substances pursuant to prescriptions that were not for a legitimate medical purpose. Specifically, the injunction states that the defendants dispensed 116,330 pills, including more than 100,000 oxycodone and hydrocodone pills, based on invalid prescriptions presented by Joe Anthony Bernal, a defendant charged in the Northern District of California in a separate criminal case (4:19-cr-00585). They did so despite circumstances that were highly suggestive that Bernal was not presenting them with legitimate prescriptions. As also stated in the injunction, the defendants took no steps to determine the validity of Bernal’s purported prescriptions and were not concerned if those medications caused patient harm. Bernal is charged with conspiring with several others to illegally acquire and distribute oxycodone and hydrocodone. The charges against Bernal are pending and are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

“As a pharmacy that fills prescriptions for opioids and other dangerous drugs, the defendants had an obligation to fill only legitimate prescriptions,” U.S. Attorney Talbert said. “The defendants failed to comply with that obligation, and thereby failed in their responsibility to prevent the opioids from being diverted into illicit channels. This case demonstrates our firm commitment to enforcing federal laws involving prescription drugs.”

“The defendants went from pharmaceutical provider to drug dealer when they knowingly provided controlled substances without a legitimate medical purpose,” said DEA Special Agent in Charge Brian M. Clark. “This egregious behavior by a trusted individual and entity not only fuels the fire of the opioid epidemic, but also wreaks havoc on the community they serve. DEA is committed to keeping our communities safe and healthy and will hold registrants accountable by ensuring they are in compliance with the law.”

This case was the product of an investigation by the Drug Enforcement Administration with assistance from the California Board of Pharmacy. Assistant U.S. Attorney Steven S. Tennyson handled the case.

SACRAMENTO, Calif. — Timothy Mackey, 42, of South Lake Tahoe, was sentenced today to five years in prison to be followed by five years of supervised release for distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Mackey was a member of chat groups that shared child pornography on the social media platform LiveMe, including a group named “No Limit!!!” On two occasions in February 2020, Mackey, using the username “bag of rock,” posted nine images of child pornography in the “No Limit!!!” group. Mackey was also the administrator of at least one LiveMe chat group devoted to the exchange of child pornography, meaning he moderated the chat and was able to decide who entered the chatroom.

Mackey had worked as a snowboarding instructor and applied to become a foster parent prior to his arrest in April 2020.

This case was the product of an investigation by the Federal Bureau of Investigation with assistance from the El Dorado County Sheriff's Department and South Lake Tahoe Police Department. Assistant U.S. Attorney Denise N. Yasinow 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 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.

The FBI is seeking to identify potential victims of Pevino. If you believe that you and/or your minor dependent(s) were victimized by Pevino at any time or have information relevant to this investigation, please send an email with your name, contact information, and best time to reach you to Pevinovictims@fbi.gov.

SACRAMENTO, Calif. — On Nov. 9, 2023, a federal grand jury returned a five-count indictment against Dakota Jeremiah Pevino (aka Dakota Jeremiah Viggiano), 35, of Sacramento, charging him with 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.

According to court documents, in the summer of 2023, Pevino sent video recordings of adult males sexually abusing prepubescent minors to another user on the Telegram application. Those video recordings accompanied chats of a sexual nature regarding minors. Other images of a prepubescent child being sexually exploited were found on Pevino’s phone and were taken in his home. Finally, the court documents allege that Pevino sent images and videos of himself sexually abusing a minor victim on messaging applications like Grindr and Telegram.

This case is the product of an investigation by the Federal Bureau of Investigation, the Sacramento Valley Hi-Tech Crimes Task Force / Internet Crimes Against Children Task Force, and the Sacramento Sheriff’s Department. Assistant U.S. Attorney Christina McCall is prosecuting the case.

If convicted of sexual exploitation of a child, Pevino 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 distribution of visual depiction of a minor engaging in sexually explicit conduct, Pevino faces a maximum statutory penalty of 20 years in prison (with a mandatory minimum sentence of five years), 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, Pevino 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 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.

FRESNO, Calif. — Irma Olguin Jr. and Jake Soberal, the founders and leaders of the failed Fresno-based technology company Bitwise Industries, self-surrendered today on a federal complaint charging them with conspiring to commit wire fraud and taking more than $100 million from various businesses and individuals, U.S. Attorney Phillip A. Talbert announced.

“The defendants could have chosen simply to admit the failure of Bitwise’s business model. Instead, they used lie after lie to pull over $100 million into a dying venture through fraud,” U.S. Attorney Talbert said. “Olguin and Soberal fabricated bank statements, lied to investors, provided false financial information to their board of directors, forged documents, and used buildings Bitwise no longer even owned as collateral for loans, all while lining their own pockets. Our office will continue to investigate and prosecute those responsible for such financial crimes, and we are grateful for the hard work of the FBI and IRS Criminal Investigation, as well as the civil enforcement work of the United States Securities and Exchange Commission.”

“The alleged deceptive business practices of Mr. Soberal and Ms. Olguin Jr. have directly and negatively impacted over 900 families from the Fresno and Bakersfield communities. Today’s complaint is a starting point toward justice for those families,” said IRS Criminal Investigation Acting Special Agent in Charge Mark Silva of the Oakland Field Office. “These sorts of white-collar crimes often root from greed and mismanagement and leave hard working tax paying citizens damaged in their wake. Let me say this to any would be fraudulent business owners in pursuit of ill-gotten proceeds: The talented and motivated special agents from IRS Criminal Investigation and our law enforcement partners from the FBI will catch you.”

“Deceptive practices within the corporate world, as alleged in this case, have far-reaching consequences. Our dedicated team of special agents and professional staff worked tirelessly to uncover a complex web of misconduct,” stated Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “We value our strong partnerships with the U.S. Attorney’s Office and the IRS Criminal Investigation. Together, we are resolute in our commitment to upholding justice, ensuring transparency, and breaking the cycle of financial wrongdoing. The collaboration between our team and our partners underscores the importance of holding wrongdoers accountable, reinforcing ethical leadership, and empowering individuals to report misconduct. It is through these efforts that we aim to make a meaningful difference in the fight against financial crimes.”

According to court records, Bitwise abruptly collapsed earlier this year despite recent reports the company was worth over $500 million and was financially sound. All of the company’s approximately 900 employees and apprentices were immediately furloughed and later laid off, and the company’s board of directors fired Olguin and Soberal.

The complaint filed this week alleges that beginning no later than January 2022, Olguin and Soberal agreed to lie to board members, investors, lenders, and others about Bitwise’s finances to obtain investments, loans, and other funding. They did so by fabricating financial information in board presentations and investor materials, and altering and forging bank statements, audits, and other financial records to inflate Bitwise’s revenues, cash balances, and property holdings. Much of the money went towards paying Bitwise’s payroll and fringe benefits, including Olguin and Soberal’s $600,000 per year salaries, outfitting the company’s office spaces, and repaying debts owed to prior lenders.

This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorneys Joseph D. Barton and Henry Z. Carbajal III are prosecuting the case.

If convicted, Olguin and Soberal each face 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 applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

complaint_olguin_soberal_.pdf

An Oklahoma man was sentenced yesterday to 21 years and 10 months in prison for advertising and distributing child sexual abuse material.

According to court documents, Austen Peppers, 36, of Lawton, sold and offered to sell images of minors being sexually abused. Peppers conducted the transactions on the dark web with cryptocurrency, and used platforms and applications that he believed were secure and protected him from law enforcement scrutiny. Peppers also engaged in sexually explicit communications with persons believed to be minors and encouraged those apparent minors to create sexually explicit images of themselves. Peppers amassed thousands of images and videos of children being sexually abused.

Peppers was also ordered to pay a special assessment of $11,200 and restitution totaling $57,000 to his victims.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Phillip A. Talbert for the Eastern District of California, and Special Agent in Charge Tatum King of Homeland Security Investigations (HSI) San Francisco made the announcement.

HSI Fresno, Chicago, and Oklahoma, and the Royal Canadian Mounted Police investigated the case, with assistance from the Oklahoma Highway Patrol Tactical Team.

Trial Attorney James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney David Gappa for the Eastern District of California prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Justice Department. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

FRESNO, Calif. — Jeremy Gober, 42, of Hanford, pleaded guilty today to health care fraud and aggravated identity theft charges for submitting more than $1.5 million in fraudulent claims to Medicare and Medi-Cal for sleep studies, U.S. Attorney Phillip A. Talbert announced.

Gober co-owned and co-operated Got Sleep Inc., which operated sleep clinics in Fresno and Orange Counties in California. Sleep clinics perform diagnostic sleep studies to identify disorders like sleep apnea and narcolepsy.

According to court documents, between August 2016 and July 2020, Gober caused Got Sleep to submit thousands of claims to Medicare and Medi-Cal for sleep studies that were not actually performed on patients. The claims also stated falsely that the patients had been referred for the sleep studies by physicians with whom Gober had previously worked. This was done because Medicare and Medi-Cal will not pay for a sleep study unless the patient was referred by a physician.

This case is the product of an investigation by the U.S. Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and the California Department of Health Care Services. Assistant U.S. Attorney Joseph Barton is prosecuting the case.

U.S. District Judge Ana de Alba is scheduled to sentence Gober on March 4, 2024. He faces a maximum statutory penalty of 10 years in prison for the health care fraud conviction and an additional, mandatory two years in prison for the identity theft conviction. 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.

In September 2023, Jeremy Gober’s brother, Travis Gober, pleaded guilty to similar health care fraud and aggravated identity theft charges related to other sleep clinics in the Central Valley.

FRESNO, Calif. — Austen Peppers, 36, of Lawton, Oklahoma, was sentenced today to 21 years and 10 months in prison to be followed by 15 years of supervised release for advertising and distributing child sexual abuse material, U.S. Attorney Phillip A. Talbert announced.

He was also ordered to pay restitution to 19 victims totaling $57,000.

According to court documents, between March 2018 and August 2019, Peppers sold and offered to sell images of minors being sexually abused. He conducted transactions on the dark web with cryptocurrency, using platforms and applications that he believed were secure and protected him from law enforcement scrutiny. Peppers also engaged in sexually explicit communications with persons he believed to be minors and encouraged those apparent minors to create sexually explicit images of themselves. Peppers amassed thousands of images and videos of children being sexually abused.

This case was the product of an investigation by the Homeland Security Investigations offices in Fresno, Chicago, and Oklahoma as well as the Royal Canadian Mounted Police with assistance from the Oklahoma Highway Patrol Tactical Team. Assistant U.S. Attorney David Gappa prosecuted the case with Trial Attorney James Burke IV of the Department of Justice Child Exploitation and Obscenity Section.

Peppers has been in custody since his initial appearance in this case on Nov. 14, 2019.

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. — Gabriel Adrien Lobe Diop, 35, a French national previously residing in Agoura Hills, California, pleaded guilty today to nine counts of mail fraud and one count of aggravated identity theft, United States Attorney Phillip A. Talbert announced. 

According to court documents, Diop orchestrated a scheme to illegally obtain millions of dollars of Unclaimed Property Division funds from the California State Controller’s Office. Diop did so by assuming the identities of victims for whom the Controller’s Office was holding significant amounts of unclaimed property, and then submitting fraudulent applications for that property. Diop concealed his involvement in the fraud using a combination of post office boxes, mail forwarding requests, counterfeit notary stamps, and falsified driver licenses issued by numerous states. Starting in January 2019, Diop attempted to steal at least $9 million from the Unclaimed Property Division.

Law enforcement agents executed search and arrest warrants at Diop’s residence in Agoura Hills in June 2021. Inside his residence, agents seized counterfeit stamps that Diop used to “notarize” his fraudulent applications for unclaimed property, twelve falsified driver licenses, bank cards and check books in his victims’ names, and at least six change-of-address packets issued by the United States Postal Service.

This case was the product of an investigation by the United States Postal Inspection Service with assistance from the California State Controller’s Office, the Sacramento Valley Hi-Tech Crimes Task Force, and the United States Postal Service Office of Inspector General. Assistant United States Attorney Sam Stefanki is prosecuting the case.

Diop remains in federal custody and is scheduled to be sentenced by Senior United States District Court Judge William B. Shubb on January 29, 2024. Diop faces a maximum statutory penalty of twenty years in prison and a $250,000 fine on each of the nine counts of mail fraud to which he pleaded guilty. Diop also faces a mandatory and consecutive statutory penalty of two years in prison on the aggravated identity theft count to which he pleaded guilty. 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. — Esther Andrade Olson, 49, of Kings County, pleaded guilty today to embezzling over $60,000 from multiple members’ accounts at a Tulare-based credit union where she was previously employed, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Olson, while serving as an assistant branch manager, made several unauthorized withdrawals from four members’ accounts from July through August 2022.  Olson made unauthorized cash withdrawals by bringing up the victims’ accounts while assisting other credit union members who were at the teller window to make it appear as though she had legitimate reasons to access the credit union’s cash stores.  When confronted by credit union officials, Olson claimed that one of the victims was “doing some remodeling,” but told another employee that she was “done” and abruptly resigned from her position.  Olson spent most of the money that she stole on TikTok, gifting much of the funds to an out of state individual with hundreds of thousands of followers on TikTok.

This case is the product of an investigation by the Federal Bureau of Investigation.  Special Assistant U.S. Attorney Chan Hee Chu and Assistant U.S. Attorney Joseph Barton are prosecuting the case.

Olson is scheduled to be sentenced by U.S. District Judge Ana de Alba on March 4, 2024.  Olson faces a maximum statutory penalty of 30 years in prison and a $1,000,000 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.

BAKERSFIELD, Calif. — Joshua Ruic Kimball, 40, of Bakersfield, was arrested today on a criminal complaint for unlawful trafficking of firearms controlled by the National Firearms Act and for unlawful trafficking of firearms in violation of state law, U.S. Attorney Phillip A. Talbert announced.

“Under the guise of operating a legal firearms shop, Kimball was selling firearms in bulk without recording transactions through the ATF or complying with state background check or waiting period requirements,” U.S. Attorney Talbert said. “Over one hundred firearms traced to his operation have been recovered at crime scenes throughout the district, California, and other states. Our office is grateful for the strong federal, state, and local partnerships that made this investigation successful.”

“There is no higher priority than protecting our communities from firearms violence,” said Special Agent in Charge Jennifer Cicolani of the ATF. “Crime gun intelligence was a key factor in being able to identity the firearms dealer in this investigation, and we will continue in our collaborative efforts with the Central Valley Crime Gun Task Force to strategically target and identify illegal firearms sales, trafficking patterns, and sources of crime guns.”

“The results of Operation Last Member are not only impressive, but they highlight the profound impact of combating illegal and indiscriminate sales of firearms to criminals,” Fresno Police Department Chief Paco Balderamma said. “The recovery of at least 102 firearms used in crimes from a single source in the western United States is a significant achievement. These guns will no longer pose a threat to our community, and the individual responsible for their distribution will be held accountable. I commend the Central Valley Crime Gun Task Force, a collaboration between the Fresno Police Department and the ATF, for successfully conducting this large-scale and complex investigation. I am also very appreciative of the work by our US Attorney’s Office for taking this case on and prosecuting it at the federal level. I look forward to future investigations by this task force which will work closely with our federal partners to eradicate illegally purchased firearms from the hands of criminals. This type of proactive enforcement will undoubtedly enhance the safety of our community, making it a better place to live.”

According to court documents, the investigation began when law enforcement began discovering firearms traced to Kimball that had been seized in connection with crimes. Over 100 such firearms have been traced to Kimball since 2021. Undercover agents then contacted Kimball at his place of business, Show Off Sports LLC, at which point Kimball sold undercover agents multiple weapons, including a short-barreled rife and several silencers. All of the weapons were sold without background checks or documentation as required by law.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorneys Robert L. Veneman-Hughes and Stephanie M. Stokman are prosecuting the case.

If convicted, Kimball faces a maximum statutory penalty of 15 years in prison, and a $250,000 fine for trafficking in firearms; 10 years in prison and a $250,000 fine for unlawfully trafficking in controlled firearms; and five years in prison and a $250,000 fine for unlawfully trafficking in firearms in violation of state law. 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 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.

SACRAMENTO, Calif. — A federal grand jury returned a single-count indictment last week against brothers Denis Gutsu, 31, of Antelope, and Maxim Gutsu, 26, of Rancho Cordova, charging them with conspiracy to commit money laundering, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between December 2017 and March 2019, Denis Gutsu and Maxim Gutsu bought gift cards for a national retailer from persons who had obtained the gift cards using stolen credit card numbers. The Gutsu brothers bought these gift cards at a significant discount and then, usually within a day, sold the gift cards to an online gift card exchange. The brothers agreed with the exchange to sell these gift cards at a discount. In return, the online exchange passed on the discount to buyers who would quickly spend the gift cards.  This sequence allowed the fraudulently obtained gift cards to be spent before the national retailer could void them due to fraud.

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

If convicted, Denis Gutsu and Maxim Gutsu each face a maximum statutory penalty of 20 years in prison and a fine of $500,000 or twice the value of the property involved in the money laundering. 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. —Adan Navarro, 29, of Rancho Cordova, pleaded guilty today to conspiracy to import heroin, methamphetamine, and fentanyl pills, conspiracy to distribute and possess with intent to distribute heroin, methamphetamine, and fentanyl pills, and conspiracy to launder money to Mexico, United States Attorney Phillip A. Talbert announced. 

According to court documents, on June 2, 2020, Navarro coordinated and received a $20,000 cash payment on behalf of a Mexico-based drug trafficker in order to pay down a multi-kilogram heroin debt and to facilitate future larger shipments of heroin.  On July 24, 2020, U.S. border agents seized a drug load that Navarro partially owned and coordinated.  The load was seized immediately after it crossed from Mexico into the United States and contained approximately 21 pounds of pure methamphetamine, 2 kilograms of heroin, and 977 fentanyl-laced counterfeit prescription pills.  Following this seizure, Navarro and an associate arranged to send additional money to a Mexico-based source of supply to coordinate a new shipment of drugs.

This case was the product of an investigation by Homeland Security Investigations, the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Tri-County Drug Enforcement Team (TRIDENT), with assistance from Customs and Border Protection, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Rancho Cordova Police Department, the Citrus Heights Police Department, and the El Dorado County Sheriff’s Office. Assistant United States Attorney David W. Spencer is prosecuting the case.

Co-defendant Lionel Chavez pled guilty on March 21, 2023, and is scheduled to be sentenced on Dec. 12, 2023.

Navarro is scheduled to be sentenced by Judge Dale A. Drozd on March 19, 2024. Navarro faces a maximum statutory penalty of life in prison and a $10,000,000 fine on each of three drug trafficking counts, and a maximum statutory penalty of 20 years in prison and a $500,000 fine for conspiracy to launder money. 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 prosecution is part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. The Sacramento Strike Force is a co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Sacramento Strike Force is to identify, investigate, disrupt, and dismantle the most significant drug trafficking organizations (DTOs) and transnational criminal organizations (TCOs) shipping narcotics, firearms, and money through the Eastern District of California, thereby reducing the flow of these criminal resources in California and the rest of the United States. The Sacramento Strike Force leads intelligence-driven investigations targeting the leadership and support elements of these DTOs and TCOs operating within the Eastern District of California, regardless of their geographic base of operations.

SACRAMENTO, Calif. — Cameron Andrew Garcia, 29, of Dallas, Texas, pleaded guilty today to two counts of receipt of visual depictions of children engaging in sexually explicit conduct, U.S. Attorney Phillip A. Talbert announced.

According to court documents, 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. Garcia later 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 to communicate with a second minor victim who 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 is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Christina McCall is prosecuting the case.

U.S. District Judge John A. Mendez is scheduled to sentence Garcia on Feb. 13, 2024. On each count of conviction, Garcia faces a maximum statutory penalty of 20 years in prison (with a minimum sentence of five years in prison), mandatory restitution, up to a lifetime of supervised release, 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 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.

FRESNO, Calif. — Devin Michael Cuellar, 29, of Oakhurst, was sentenced today to five years and three months in prison for being a felon in possession of a sawed-off shotgun and ammunition while squatting on private property in Yosemite National Park, U.S. Attorney Phillip A. Talbert announced.

According to court documents, during the summer of 2021, Cuellar broke into a private residence on Koon Hollar Road in Wawona within Yosemite National Park and resided there for several months without permission of the owner. During that time, the residence was trashed and stolen items were found. Cuellar possessed a sawed-off shotgun and ammunition that were found in the residence. Cuellar was previously convicted of carjacking and possessing controlled substances for sale and is prohibited from possessing firearms and ammunition.

This case was the product of an investigation by the National Park Service with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Marshals Service, the California Department of Corrections and Rehabilitation, the California Department of Justice’s Bureau of Forensic Services, and the Madera County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar 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. —  Jose Santana, 47, of Shafter, was sentenced to 17 years and six months in prison for possession with intent to distribute fentanyl and heroin, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Nov. 16, 2021, law enforcement executed a federal search warrant on Santana’s motel room in Bakersfield, and also searched Santana’s vehicle with his consent. As a result, law enforcement seized about 2.5 kilograms of fentanyl, 2.5 kilograms of heroin, two firearms, and approximately $5,000 in cash.

This case is the product of an investigation by the Drug Enforcement Administration and the Bakersfield Police Department. Assistant U.S. 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.

SACRAMENTO, Calif. — After a five–day trial, a federal jury found Leticia Tyshalle Marie Reed, 47, of Sacramento, guilty Monday of six counts of making false claims to the Internal Revenue Service, U.S. Attorney Phillip A. Talbert announced. The trial was held before U.S. District Judge Daniel J. Calabretta.

According to evidence presented at trial, Reed was a paid tax preparer who was registered with the IRS. In 2014 and 2015, Reed prepared and submitted federal income tax returns for Sacramento-based clients, relating to tax years 2013 and 2014. These tax returns requested tax refunds to which the clients were not entitled. Reed deliberately manipulated the reported income on each tax return by either inflating it or fabricating it altogether, in order to qualify her clients for the maximum refundable tax credits available. Based on these falsehoods, each return that Reed submitted sought thousands of dollars in tax refunds from the IRS. At times, the refunds requested were almost half of the annual income claimed. Reed would then take a substantial portion of any tax refunds that issued as compensation for preparing her clients’ Form 1040s.

This case is the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Shelley D. Weger and Kristin F. Scott are prosecuting the case.

Reed is scheduled to be sentenced by Judge Calabretta on Feb. 1, 2024. Reed faces a maximum statutory penalty of five years in prison and a $250,000 fine for each of the six counts. 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. — Jordan T. Piper, 38, of Placerville, was sentenced today to 15 years in prison to be followed by seven and a half years of supervised release for sexual exploitation of a minor, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in 2019, Piper made approximately 30 surreptitious recordings of a minor victim while living in Groveland. Piper created screenshots from surreptitious video recordings that focused on the minor victim’s genitals and pubic area. During the execution of a search warrant, law enforcement found approximately 433 nude images of the minor victim on Piper’s cellphone.

This case was the product of an investigation by the El Dorado County Sheriff’s Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Roger Yang 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 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.

FRESNO, Calif. — Luis Eduardo Sanchez-Azpeitia, 46, a Mexican national who was working in Sequoia National Park on a work visa, pleaded guilty today to abusive sexual contact with a female co-worker, U.S. Attorney Phillip A. Talbert announced. 

According to court documents, on July 31, 2023, Sanchez-Azpeitia entered the victim’s cabin in Sequoia National Park and committed non-consensual acts of abusive sexual contact, including touching her breasts, inner thighs, and vagina. The victim did not consent to any of the defendant’s sexual conduct, repeatedly told the defendant no, and tried to make him stop his sexual advances.

This case is the product of an investigation by the National Park Service with assistance from the Federal Bureau of Investigation. Assistant U.S. Attorney Katrina Brownson and Karen Escobar are prosecuting the case.

Sanchez-Azpeitia is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Feb. 26, 2024. Sanchez-Azpeitia faces a maximum statutory penalty of two 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.

SACRAMENTO, Calif. — After a six-day trial, a federal jury found Henry Benson, 42, of Vallejo, guilty on Thursday of conspiracy to distribute and manufacture methamphetamine-laced pills, four counts of distributing or possessing with intent to distribute methamphetamine-laced pills, and possessing a firearm in furtherance of a drug trafficking crime, U.S. Attorney Phillip A. Talbert announced.

According to court documents and evidence presented at trial, from January 2015 until his arrest in February 2019, Benson made and sold thousands of methamphetamine-laced pills. He made the pills using pill presses, which are machines that compress powders into pills of various shapes and sizes. Benson made pills to look like traditional Ecstasy pills—colorful, candy-like pills in the shape of cartoon characters, well-known company logos, and other popular designs. On two occasions in July 2018, Benson’s co-conspirator, Rafael Ruiz, sold thousands of methamphetamine-laced pills to an undercover agent in furtherance of the conspiracy. On Feb. 7, 2019, agents searched Benson’s living quarters, which were in the back rooms of a licensed elder-care facility in Vallejo, and found a pill press, methamphetamine-laced pills, bags of powders and other items for pressing pills, and a 12-gauge shotgun. The next day, agents searched Benson’s storage unit in Vacaville and found five more pill presses.

This case is the product of an investigation by the Drug Enforcement Administration with assistance from the Federal Bureau of Investigation, the U.S. Customs and Border Protection, the Vallejo Police Department, the California Department of Corrections and Rehabilitation, and the El Dorado County District Attorney’s Office. Assistant U.S. Attorneys David Spencer and Ross Pearson, and Cameron Desmond are prosecuting the case.

On April 25, 2022, Ruiz was sentenced to 13 years in prison after pleading guilty to distribution of methamphetamine, conspiracy to commit robbery, and assault on a federal officer.

Co-defendant Roselle Cipriano, 39, of Vallejo, pleaded guilty to conspiracy to distribute and manufacture methamphetamine-laced pills.

U.S. District Judge Dale. A Drozd is scheduled to sentence Benson and Cipriano on Jan. 9, 2024. Benson and Cipriano face 10 years to life in prison and a $10 million fine for the methamphetamine trafficking counts. Benson faces a mandatory minimum penalty of five years in prison, up to life in prison, and a fine up to $250,000 for possessing a firearm in furtherance of a drug trafficking crime. The actual sentences, 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 an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Sam Moss Kerfoot, 27, of Carmichael, charging him with sexual exploitation of a minor, distribution of child pornography, and possession of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in April and May 2022, Kerfoot sexually abused a minor and produced visual depictions of the minor engaged in sexually explicit conduct. In addition, Kerfoot is alleged to have distributed child pornography in April 2022 and possessed child pornography in June 2023.

This case is the product of an investigation by the Sacramento Valley Hi-Tech Crimes Task Force Internet Crimes Against Children unit including the Sacramento County Sheriff’s Office, with assistance from the Federal Bureau of Investigation and Homeland Security Investigations. Assistant U.S. Attorneys Emily Sauvageau and Alstyn Bennett are prosecuting the case.

If convicted of the charges as alleged, Kerfoot faces a minimum statutory penalty of 25 years in prison, a maximum of 50 years in prison, and a $250,000 fine for sexual exploitation of a minor; a minimum statutory penalty of 15 years in prison, a maximum of 40 years in prison, and a $250,000 fine for distribution of child pornography; and a minimum of 10 years in prison, a maximum of 20 years in prison, and a $250,000 fine for possession of child pornography. 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.

FRESNO, Calif. — Jia Bei Zhu, aka Jesse Zhu, aka Qiang He, aka David He, 62, a citizen of China who formerly resided in Clovis, was arrested today on a criminal complaint for manufacturing and distributing misbranded medical devices in violation of the federal Food, Drug, and Cosmetic Act (FDCA) and for making false statements to the Food and Drug Administration (FDA), U.S. Attorney Phillip A. Talbert announced.

“As part of his scheme, the defendant changed his name, the names of his companies, and their locations,” U.S. Attorney Talbert said. “The disarray at the Reedley lab led to the glare of publicity he was trying to avoid, and the ensuing investigation unraveled his efforts to circumvent the requirements that are designed to ensure that medical devices are safe and effective.”

“Providing materially false information to FDA inspectors regarding medical device manufacturing and distribution impedes the agency’s ability to protect public health, especially when those false statements relate to unauthorized and misbranded COVID-19 tests. Consumers who unknowingly use these misbranded COVID tests run the risk of incorrect results about their COVID status, which can lead to further spread of the virus,” said Special Agent in Charge Robert M. Iwanicki, FDA Office of Criminal Investigations Los Angeles Field Office. “We will continue to investigate and bring to justice those who jeopardize the health of U.S. consumers.”

According to court documents, between December 2020 and March 2023, Zhu and others manufactured, imported, sold, and distributed hundreds of thousands of COVID-19 test kits, in addition to test kits for HIV, pregnancy, clinical urinalysis, and other conditions in the United States and China. They did so through the companies Universal Meditech Incorporated (UMI) and Prestige Biotech Incorporated (PBI), which were based in Fresno and Reedley. UMI and PBI did not obtain the required authorizations to manufacture and distribute the test kits and mislabeled some of the test kits. When questioned by FDA officials, Zhu made false statements about his identity, his ownership and control of UMI and PBI, and the activities of UMI and PBI.

According to the criminal complaint, Reedley Code Enforcement officials received a complaint regarding a warehouse in Reedley for using non-permitted plumbing that was visible from outside the warehouse. When code enforcement officials went to the warehouse the next day, they saw various types of in vitro diagnostic test kits, related manufacturing equipment, and shipping supplies.

Further investigation found that UMI first registered as a medical device manufacturer with the FDA in November 2015 in Tulare and moved to Fresno in 2018. FDA records show that its registration lapsed in 2022, and it is no longer permitted to manufacture or import any in vitro diagnostic test kits in the United States. Any test kits that the company manufactured or imported after that date are considered misbranded medical devices.

To manufacture, import, and distribute COVID-19 test kits in the United States during the pandemic, a company must have applied for, and ultimately received, an Emergency Use Authorization (EUA) from the FDA. According to FDA records, UMI applied for an EUA for its COVID-19 test kits, but never received it due to major deficiencies in UMI’s test studies.

In November 2022, Fresno County officials notified UMI that they were going to inspect UMI’s Fresno facility to ensure everything was up to code following a fire that occurred at the facility. FDA officials then received an email from UMI’s attorney saying that the company had gone out of business and sold its assets to PBI, a company that was formed in Las Vegas, Nevada. PBI was never registered with the FDA to manufacture or import any in vitro diagnostic test kits in the United States, and never received an EUA to manufacture and distribute COVID-19 test kits. Therefore, any such test kits would be misbranded medical devices.

According to the criminal complaint, during the investigation, Zhu made several false statements to FDA officials, including that his name was Qiang “David” He; that he was hired by UMI as a COVID-19 consultant in 2021; that he was hired by PBI just a couple of weeks ago to communicate with government agencies and dispose of property at the warehouse as requested by those agencies; that he did not know anything about the manufacturing or distribution histories for UMI or PBI; and that he knew nothing about an Amazon webpage showing PBI‑branded pregnancy test kits for sale or a shipment of 47,500 pregnancy test kits from China to UMI at an address in Las Vegas.

This case is the product of an investigation by the FDA Office of Criminal Investigations, with assistance from the Federal Bureau of Investigation and the California Department of Public Health – Food and Drug Branch. Assistant U.S. Attorneys Joseph D. Barton, Arelis M. Clemente, and Henry Z. Carbajal III are prosecuting this case.

If convicted, Zhu faces a maximum statutory penalty of three years in prison for the misbranding of medical devices charge, and five more years in prison for the false statements charge. 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.

zhu_criminal_complaint.pdf

FRESNO, Calif. — Miguel Deniz, 33, of Farmersville, was sentenced today to 17 years and six months in prison for possession with intent to distribute methamphetamine, being a felon in possession of firearms, and possession of a machine gun, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on May 1, 2019, law enforcement officers executed a search warrant at Deniz’s residence and found more than a pound of methamphetamine, an AK-style rifle, a Mossberg pump action shotgun, six handguns, 18 magazines, two handgun silencers, a ballistic vest, thousands of rounds of live ammunition, and firearm accessories. During the search, law enforcement officers also found “auto-sear” devices that are used to convert semi-automatic firearms to fire as fully automatic machine guns. Deniz is a convicted felon and is prohibited from possessing firearms or ammunition.

This case was the product of an investigation by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the California Department of Justice. 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.

SACRAMENTO, Calif. — Three Sacramento family members pleaded guilty today to charges related to their participation in a nationwide catalytic converter theft conspiracy, U.S. Attorney Phillip A. Talbert announced.

Brothers Tou Sue Vang, 32, and Andrew Vang, 28, and their mother Monica Moua, 58, all pleaded guilty to conspiring to transport stolen catalytic converters from California to New Jersey in return for over $38 million in wired payments. Tou Sue Vang also pleaded guilty to an additional 39 charges related to money laundering.

In October and November 2022, federal, state, and local law enforcement partners from across the United States executed a nationwide, coordinated takedown of leaders and associates of a national network of thieves, dealers, and processors for their roles in conspiracies involving stolen catalytic converters sold to a metal refinery for over $600 million dollars. Nine of 21 defendants were charged in the Eastern District of California.

Catalytic converters are part of an exhaust system that reduces toxic gas and pollutants from a vehicle’s internal combustion engine. Catalytic converters use precious metals in their center, or “core,” and are regularly targeted for theft due to the high value of these metals, especially the precious metals palladium, platinum, and rhodium. Some of these precious metals are more valuable per ounce than gold, and their value has been increasing in recent years. The black-market price for catalytic converters can be above $1,000 each, depending on the type of vehicle and what state it is from. They can be stolen in less than a minute. Last year, approximately 1,600 catalytic converters were reportedly stolen in California each month, and California accounts for 37% of all catalytic converter theft claims nationwide.

According to court documents, the defendants pleading guilty today operated an unlicensed business from their residence in Sacramento where they bought stolen catalytic converters from local thieves and shipped them to DG Auto Parts LLC (DG Auto) in New Jersey for processing. They sold over $38 million in stolen catalytic converters to DG Auto.

Also charged in the 2022 indictment were co-defendants Navin Khanna, aka Lovin Khanna, 40; Tinu Khanna, aka Gagan Khanna, 36; Daniel Dolan, 45; Chi Mo, aka David Mo, 37; Wright Louis Mosley, 50; and Ishu Lakra, 25, all of New Jersey who operated DG Auto in multiple locations in New Jersey. According to court documents, they knowingly purchased stolen catalytic converters and, through a “de-canning” process, extracted the precious metal powders from the catalytic core. DG Auto sold the precious metal powders it processed from California and elsewhere to a metal refinery for over $600 million. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation with assistance from the Sacramento County Sheriff’s Department, the Sacramento Police Department, the Davis Police Department, the Auburn Police Department, the Livermore Police Department, and the San Bernardino County Sheriff’s Department. Assistant U.S. Attorney Veronica M.A. Alegría is prosecuting the case.

Tou Sue Vang, Andrew Vang, and Monica Moua are not yet scheduled to be sentenced. Andrew Vang and Monica Moua each face a maximum penalty of five years in prison. The 40 counts to which Tou Sue Vang pleaded guilty carry various maximum penalties per count ranging from 20 years in prison to five years in prison, and fines that range from $500,000 to $250,000 per count or twice the gross gain or loss from the crimes. The actual sentences, 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 an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

FRESNO, Calif. — Former Navy IT Manager Marquis Hooper, 32, of Selma, California, was sentenced today to five years and five months in prison for hacking a computer database that contained personally identifiable information (PII) and selling it, U.S. Attorney Phillip A. Talbert announced.

According to court records, in August 2018, Hooper opened an online account with a company that runs a database containing the PII for millions of people. The company restricts access to the database to businesses and government agencies that have a demonstrated, lawful need for the PII. Hooper, however, opened his database account by falsely representing to the company that the Navy needed him to perform background checks.

After Hooper opened his database account, he added his wife and co-defendant, Natasha Chalk, to the account. They then stole over 9,000 people’s PII and sold it to other individuals on the dark web for $160,000 in bitcoin.

At least some of the individuals to whom Hooper and Chalk sold the PII used it to commit further crimes. For example, one individual used the PII to create a fake driver’s license and then tried to withdraw money from the victim’s bank account.

In December 2018, Hooper’s database account was closed for suspected fraud. Thereafter, Hooper, Chalk, and an unindicted co-conspirator tried to regain access to the database. Hooper instructed the unindicted co-conspirator to open a new database account by representing that the Navy needed him to perform background checks just like Hooper had done. Hooper offered to pay the unindicted co-conspirator $2,500 for each month that the database account was opened. The unindicted co-conspirator submitted an application to open the database account and the company told him that a supply officer had to sign the contract. Navy supply officers have contracting authority to purchase certain services and supplies for the Navy.

Hooper then sent the unindicted co-conspirator multiple documents falsely identifying an identity theft victim as the supposed Naval supply officer.  These documents included a false contract, a fake driver’s license for the identity theft victim, and a forged letter purporting to be from a commanding officer in the Navy. The unindicted co-conspirator submitted the fake documents to the company, but the company decided not to open the new database account.

This case is the product of an investigation by the Naval Criminal Investigative Service, the Federal Bureau of Investigation, and Homeland Security Investigations. Assistant U.S. Attorney Joseph Barton is prosecuting the case.

Chalk is scheduled to be sentenced on Nov. 20, 2023. She faces a maximum statutory penalty of 20 years in prison and a fine of $250,000. 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. — On Sept. 28, 2023, a federal grand jury returned a two-count indictment against Steven Daniel Miller, 47, of Fairfield, charging him with bank fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

Yesterday Miller made his first appearance in federal court on the case.

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.

If convicted, Miller faces a maximum statutory penalty of 30 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.