Eastern District of California

FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Jose Efren Beltran, 32, of Mecca, charging him with possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Sept. 18, 2021, in Madera County, Beltran possessed over 500 grams of methamphetamine with the intent to distribute it.

This case is the product of an investigation by the Madera County Sheriff’s Office, the Federal Bureau of Investigation, and the Fresno High Impact Investigation Team. Assistant U.S. Attorney Laura Jean Berger is prosecuting the case.

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

FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Robert Anthony Mendoza Jr., 23, of Pico Rivera, charging him with assaulting a federal officer resulting in bodily injury and assaulting a federal officer with physical contact, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on July 3, 2022, during the busy Fourth of July holiday weekend in Yosemite National Park, law enforcement rangers responded to a report of a fight in the campground known as Housekeeping Camp. The rangers saw Robert Mendoza Jr. and his father, Robert Mendoza Sr., fighting. As the rangers tried to arrest him, Mendoza Jr. refused to comply, and a violent confrontation ensued. Mendoza Jr. struck one ranger numerous times, resulting in pain, swelling, and bruising to the ranger’s head, jaw and neck. After Mendoza Jr. was finally subdued and placed in a patrol car for transport, he became violent again and slipped out of his restraints. When the rangers stopped to secure him, he began fighting with them and headbutted a second ranger.

This case is the product of an investigation by the Yosemite National Park Service law enforcement officers. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.

If convicted, Mendoza Jr. faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for assault on a federal officer resulting in bodily injury and up to eight years in prison and a $250,000 fine for assault on a federal officer with physical contact. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Hugo Vigil Villagomez, 42, of Oakdale, and Serafin Villagomez Vigil, 27, of Riverbank, charging them with possessing and conspiring to possess with intent to distribute 500 grams or more of methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on June 30, 2022, Villagomez and his nephew Vigil attempted to sell 440 pounds of methamphetamine to an undercover law enforcement officer. On the day of the deal, Villagomez and Vigil arrived at a parking lot in Salida, where they met with the undercover officer. They had brought with them several suitcases stuffed full of hundreds of pounds of methamphetamine. When the pair unzipped the suitcases, law enforcement personnel moved in and arrested them.

This case is the product of an investigation by the Drug Enforcement Administration and the Stanislaus County Sheriff’s Department Special Investigations Unit. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.

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

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. — Jeffrey Kim, 51, of Colorado, pleaded guilty today to bank fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between Feb. 1, 2017, and July 24, 2017, Kim participated in a nationwide check kiting “bust out” scheme in order to obtain cash from banks. The scheme’s participants obtained a real Republic of Korea passport that was altered to bear a new photograph and name, which they used to open bank accounts with a small amount of cash. The accounts were dormant until a time the participants believed the bank would allow the account holder to deposit a check and make withdrawals before the check actually cleared. At that time, the participants wrote checks from a different bank account with non-sufficient funds, deposited those checks into the dormant account, and then withdrew cash from the dormant account before the checks cleared. The participants would access funds by purchasing a money order and then deposit the money order into yet another bank account associated with the scheme.

As part of the scheme, on Feb. 16, 2017, a participant opened an account at a BMO Harris branch in Arizona using a falsified Korean passport. Thirty-six checks were written against the account, all of which eventually bounced for insufficient funds. Another participant opened a Wells Fargo checking account in Arizona, using a different falsified Korean passport. Kim participated in the bust-out of this account. Seven times on May 25-26, 2017, Kim deposited checks from the BMO Harris account into the Wells Fargo at branch locations in Orangevale, Roseville, and Sacramento. Kim then made cash withdrawals of between $800 and $1,900, or requested cash back when depositing the checks.

In addition, on May 26, 2017, Kim purchased a postal money order for $995 from the Carmichael post office, using a debit card connected to one of the Wells Fargo bust-out accounts. Three days later, another participant deposited the money order into a different Wells Fargo account. The funds from the money order were used to give the bank account the appearance of legitimacy until that account was eventually “busted out” as part of the scheme.

On May 24, 2017, Kim obtained a fraudulent Korean passport with Kim’s picture, but the name and Social Security card of another individual, which he used to open a private mail box in Granite Bay and a bank account at the El Dorado Savings Bank in Folsom. Out of the El Dorado Savings Bank checking account, approximately 67 checks were presented for payment in amounts between $992 and $2,998 for a total of $313,796. All of the checks bounced as there was only $100 in the account to cover the checks.

Kim’s bust-out activity resulted in an actual loss of $196,058 to the banks, and an intended loss of $380,429 based on unsuccessful bust-out attempts.

Kim is the second defendant to plead guilty in this case. Kyung Min Kong pleaded guilty on Feb. 10, 2022, and is scheduled to be sentenced on Aug. 25, 2022. Charges are pending against Ki Jang, Il Chung, Hee Soung Oh, Bon Soke Hong, and Jong Eun Lee, who were all indicted on Oct. 21, 2021. 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 IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Audrey B. Hemesath is prosecuting the case.

Kim is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Oct. 6, 2022. Kim faces a statutory maximum penalty of 30 years in prison and a fine of up to $1 million for bank fraud and a mandatory consecutive two years in prison and a fine of up to $250,000 for aggravated identity theft. 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. — William Richter, 39, of Shasta County, was sentenced Tuesday to 10 years in prison, plus 20 years of supervised release, for knowing possession of visual depictions of minors engaging in sexually explicit conduct, U.S. Attorney Phillip A. Talbert announced.

Additionally, Richter was ordered to pay $3,000 in victim restitution and was sentenced to an additional four months in prison for violating the terms of his supervised release on his prior federal case.

According to court documents, Richter had been convicted of the same offense in 2013, and was on federal supervised release when he committed this new crime on July 23, 2020. On that date, Richter was pulled over for a traffic violation. A smart phone was discovered hidden in Richter’s driver’s seat cover. According to the terms of his supervised release, Richter was not allowed to use the internet or to possess a smart phone. Forensic analysis revealed that Richter possessed at least 51 explicit photographs and three videos of pre-pubescent minors on his phone, one of which depicted sexual abuse of an infant. The victims in the images came from locations outside of California, such as the Philippines, Germany, Russia, Ukraine, Ecuador, Slovenia, Sweden, Pennsylvania, Alabama, Virginia, Florida, Tennessee, Utah, and Delaware. Richter had installed programs such as Kik messenger, VLC media player, the TOR browser, Yo Live, Telegram and Mega on his unauthorized phone, and accessed websites which likely hosted sexually explicit conduct.

This case is the product of an investigation by Homeland Security Investigations and the Shasta County Sheriff’s Office. Assistant U.S. Attorney Christina McCall 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.

SACRAMENTO, Calif. — Pedro Luis Millan, aka Peter Millan, 36, of Montebello, was arrested today after a federal grand jury returned a two-count indictment last Thursday, charging him with conspiracy to sexually exploit a child and receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in May 2021, Millan used the Kik messaging application to conspire with another user located in Yuba County to produce an image of a child under the age of 12 engaged in sexually explicit conduct. Millan received that image, as well as additional pornographic images of the same child victim, from his co-conspirator over the Kik messaging application.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.

If convicted of conspiracy to sexually exploit a child, Millan faces a mandatory minimum sentence of 15 years in prison, a maximum statutory penalty of 30 years in prison, and a $250,000 fine. If convicted of receipt of child pornography, Millan faces a mandatory minimum sentence of five years in prison, a maximum statutory penalty of 20 years in prison, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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. — Steven Eric Cabrera, 27, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to four years and nine months in prison for illegally possessing a machine gun, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in May 2020, Cabrera attempted to sell a firearm to a customer, who was an undercover law enforcement officer. Several months later, in January 2021, Cabrera posted videos and photographs in which he advertised firearms for sale on his social media account. Law enforcement executed a search warrant at his residence and seized ammunition, firearms manufacturing equipment, and several firearms, including a machine gun. Cabrera was arrested and charged with several federal firearms offenses. In April 2022, Cabrera pleaded guilty to illegally possessing a machine gun.

The case was the result of an investigation by the Multi-Agency Gang Enforcement Consortium (MAGEC), the Fresno Police Department, and the Federal Bureau of Investigation. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

SACRAMENTO, Calif. — After a six-day trial, a federal jury found Antonio Deshawn Long-Andrews, 28, of Sacramento, guilty of sex trafficking by force, fraud, or coercion, U.S. Attorney Phillip A. Talbert announced.

According to court documents and evidence presented at trial, between August 2017 and Dec. 5, 2018, Long targeted a young woman using force, threats of force, and coercion to cause her to perform commercial sex acts for his financial benefit. Long’s commercial sex operation occurred on the streets and inside motel rooms in Northern and Southern California cities, including Sacramento, Oakland, San Jose, Santa Ana, and Orange.

According to evidence presented at trial, on Sept. 28, 2018, as part of his sex trafficking operation, Long repeatedly punched the victim inside his car in the parking lot of a motel. During the attack, the victim tried to exit the car, but an associate of Long kept her inside the car while Long continued to beat her. An eyewitness saw the attack, and the motel’s security camera recorded the victim being dragged under Long’s car. Although the victim was injured and had two black eyes, a week later, Long continued to engage her in commercial sex acts for his benefit.

During recorded calls from the Sacramento County Jail, Long maintained control over the victim, conveying that she was expected to earn money for him by selling her body to strangers. After Long’s release from the Sacramento County Jail, Long continued his exploitation of the victim from late November 2018 until his arrest on Dec. 5, 2018.

This case is the product of an investigation by the Sacramento Police Department, the California Department of Justice, and the Federal Bureau of Investigation. The California Highway Patrol, the Sacramento Sheriff’s Department, and the Sacramento County District Attorney’s Office assisted in the investigation. Assistant U.S. Attorneys Jason Hitt, Christina McCall, and Nirav Desai are prosecuting the case.

Long is scheduled to be sentenced by U.S. District Judge John A. Mendez on Oct. 18, 2022. Long faces a minimum sentence of 15 years in prison and a maximum statutory penalty of life in prison, and a maximum fine of $250,000. The sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines.

FRESNO, Calif. — Manuel Garcia, 35, of Armona, was sentenced today by U.S. District Judge Dale A. Drozd to 15 years in prison for conspiring to sell over 500 grams of methamphetamine, U.S. Attorney Phillip A. Talbert announced.

Garcia was arrested as part of Operation Red Reaper, a federal, state, and local law enforcement operation targeted at dismantling the criminal activities of the Norteno Street Gang and Nuestra Familia Prison Gang in the counties of Kings and Tulare. The operation resulted in the arrests of over 50 individuals. Federal charges were brought against 23 defendants, including Garcia.

According to court documents, Garcia had previously sustained a federal conviction for trafficking methamphetamine and was sentenced to nine years in prison. Just months after his release in 2019, he conspired with other Norteno street gang members to possess and distribute pounds of methamphetamine. Gang members supplied him with methamphetamine, and he agreed to sell the drugs and pay a portion of the proceeds back to the gang. In May 2019, investigators obtained information that Garcia had picked up over a pound of methamphetamine from a co‑conspirator. Officers performed a traffic stop on a car that Garcia was driving, searched the car, and found the methamphetamine. He was arrested, charged, and pleaded guilty to the conspiracy charge in April 2022.

This case was the product of an investigation by the Federal Bureau of Investigation, the Kings County Gang Task Force, the Special Operations Unit of the California Department of Justice and the California Highway Patrol, the California Department of Corrections and Rehabilitation, and the Kings County District Attorney's Office. Assistant U.S. Attorneys Justin J. Gilio, Kimberly A. Sanchez, and Jessica A. Massey are prosecuting the case.

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 two-count indictment against Christopher Matthew Rougeau, 38, of Vallejo, charging him with possessing methamphetamine with intent to distribute and being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on April 20, 2022, Rougeau possessed methamphetamine, a pistol, and a short-barreled shotgun. Rougeau has been previously convicted in California state court of multiple firearm and drug offenses.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Marin County Sheriff’s Office. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.

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

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

SACRAMENTO, Calif. — A federal grand jury returned two indictments on Thursday charging a total of seven defendants with various drug-trafficking crimes, including conspiracy to distribute methamphetamine and heroin, as well as multiple counts of distribution of methamphetamine and heroin, U.S. Attorney Phillip A. Talbert announced.

Defendants Wendy Labuda, 64; Epifanio Ramirez, 47; Sarah Anderson, 32; Fabian Gomez, 33, and Joaleen Rogers, 53, all of South Lake Tahoe; and William Owen, 47, of Sacramento, were charged in one indictment with counts specific to each defendant. A separate indictment charged Robert Choate, 38, of South Lake Tahoe, with distribution of methamphetamine and heroin, as part of the same investigation that led to the charges against the other six defendants.

According to court documents, between August 2020 and May 2022, the defendants worked together as part of overlapping efforts to sell methamphetamine and heroin in and around South Lake Tahoe. Over those two years, the defendants sold drugs to multiple confidential informants. While most of the defendants’ distribution happened in and around South Lake Tahoe, the investigation uncovered that some of the drug supply was coming from Sacramento.

These charges arise from Operation Bear Trap, which began in 2020 to address the growing problem of methamphetamine distribution in South Lake Tahoe. Four additional defendants were charged last August with multiple drug and gun trafficking crimes as part of the same operation. Over the course of the operation, law enforcement agencies have interdicted methamphetamine, heroin, and numerous firearms, including “ghost” pistols and assault rifles (firearms manufactured without serial numbers, making them harder for law enforcement to trace).

To date, 36 individuals have been arrested in connection to Operation Bear Trap in California and Nevada on state and federal charges related to drug and firearms trafficking.

For all defendants, any sentence 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.

This case is the product of an investigation by the Federal Bureau of Investigation, the South Lake Tahoe Police Department, the El Dorado County Sheriff’s Office, the El Dorado County District Attorney’s Office, the Douglas County Sheriff’s Office, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Postal Inspection Service, the Drug Enforcement Administration, and the Sacramento County Sheriff’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.

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. — Spencer Manning, 28, of Bakersfield, was sentenced today to three years and 10 months in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Oct. 13, 2021, Manning was inside a Bakersfield grocery store when loss prevention staff observed him placing store merchandise into his backpack. Staff tried to detain Manning as he exited the store, but Manning forcibly resisted. During the struggle, staff removed Manning’s backpack and discovered inside stolen merchandise and a Glock 23, .40 caliber handgun, loaded with a 30-round magazine containing 25 rounds of live ammunition, that was later determined to have been stolen. Manning may not lawfully possess firearms or ammunition because in 2015 he was convicted of two counts of obstruction and resisting arrest.

This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bakersfield Police Department. Assistant U.S. Attorney Christopher D. Baker prosecuted the case.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

SACRAMENTO. Calif. — Aerojet Rocketdyne Inc., headquartered in El Segundo, California, has agreed to pay $9 million to resolve allegations that it violated the False Claims Act by misrepresenting its compliance with cybersecurity requirements in certain federal government contracts, the Justice Department announced today. Aerojet provides propulsion and power systems for launch vehicles, missiles, and satellites and other space vehicles to the Department of Defense, NASA and other federal agencies. 

The settlement resolves a lawsuit filed and litigated by former Aerojet employee Brian Markus against Aerojet under the qui tam or whistleblower provisions of the False Claims Act, which permit a private party (known as a relator) to file a lawsuit on behalf of the United States and receive a portion of any recovery. Mr. Markus and Aerojet reached a settlement of the case on the second day of trial. Mr. Markus will receive $2.61 million as his share of the False Claims Act recovery.

“Whistleblowers with inside information and technical expertise can provide crucial assistance in identifying knowing cybersecurity failures and misconduct,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. 

“The qui tam action brought by Mr. Markus is an example of how whistleblowers can contribute to civil enforcement of cybersecurity requirements through the False Claims Act,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California.

On Oct. 6, 2021, the Deputy Attorney General announced the Department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put information or systems of the United States at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents and breaches. Information on how to report cyber fraud can be found here.

The qui tam case is captioned United States ex rel. Brian Markus v. Aerojet Rocketdyne Holdings, Inc., et al., Case No. 2:15-cv-02245-WBS-AC (E.D. Cal.).

The claims resolved by the settlement are allegations only and there has been no determination of liability.

Aerojet Rocketdyne Inc., headquartered in El Segundo, California, has agreed to pay $9 million to resolve allegations that it violated the False Claims Act by misrepresenting its compliance with cybersecurity requirements in certain federal government contracts, the Justice Department announced today. Aerojet provides propulsion and power systems for launch vehicles, missiles and satellites and other space vehicles to the Department of Defense, NASA and other federal agencies. 

The settlement resolves a lawsuit filed and litigated by former Aerojet employee Brian Markus against Aerojet under the qui tam or whistleblower provisions of the False Claims Act, which permit a private party (known as a relator) to file a lawsuit on behalf of the United States and receive a portion of any recovery. Mr. Markus and Aerojet reached a settlement of the case on the second day of trial. Mr. Markus will receive $2.61 million as his share of the False Claims Act recovery. 

“Whistleblowers with inside information and technical expertise can provide crucial assistance in identifying knowing cybersecurity failures and misconduct,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. 

“The qui tam action brought by Mr. Markus is an example of how whistleblowers can contribute to civil enforcement of cybersecurity requirements through the False Claims Act,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. 

On Oct. 6, 2021, the Deputy Attorney General announced the Department’s Civil Cyber-Fraud Initiative, which aims to hold accountable entities or individuals that put U.S information or systems at risk by knowingly providing deficient cybersecurity products or services, knowingly misrepresenting their cybersecurity practices or protocols, or knowingly violating obligations to monitor and report cybersecurity incidents and breaches. Information on how to report cyber fraud can be found here.

The qui tam case is captioned United States ex rel. Brian Markus v. Aerojet Rocketdyne Holdings Inc., et al., Case No. 2:15-cv-02245-WBS-AC (E.D.Cal.). 

The claims resolved by the settlement are allegations only and there has been no determination of liability.

SACRAMENTO, Calif. —Phillip A. Talbert was sworn in today as the United States Attorney for the Eastern District of California. Mr. Talbert was nominated by President Joseph R. Biden on April 25, 2022, and confirmed by the United States Senate on June 23, 2022.

The Eastern District of California is the largest federal district geographically in California and home to over 8 million residents living in 34 counties. The U.S. Attorney’s Office has over 180 personnel with its headquarters in Sacramento and offices in Fresno and Bakersfield.

“I am deeply honored to have been selected to lead the U.S. Attorney’s Office where I have served as a career prosecutor the majority of my legal career. I am humbled to have the support and confidence of President Biden and my two home state Senators, Dianne Feinstein and Alex Padilla. I pledge to serve the Eastern District of California by seeking justice in all of our criminal and civil matters. I am honored to lead the committed public servants in this outstanding office. I look forward to working with them and our federal, state, and local law enforcement partners to keep our communities safe and to represent the United States with the highest quality legal representation,” said Mr. Talbert.

On March 1, 2021, Mr. Talbert assumed leadership of the office as Acting U.S. Attorney. Mr. Talbert has served as an Assistant U.S. Attorney in this district for 19 years, first in the Narcotics and Violent Crime Unit in Sacramento where he prosecuted drug trafficking cases, then as the Chief of Appeals and Training in which he supervised the office’s appellate practice and trained incoming Criminal Division Assistant U.S. Attorneys, and then as the First Assistant U.S. Attorney under U.S. Attorneys appointed in two different administrations. He led the office for almost two years as the Acting and Interim U.S. Attorney in 2016-2017. Mr. Talbert also taught professional responsibility for four years as an adjunct professor at the U.C. Davis School of Law.

Prior to joining the U.S. Attorney’s Office, Mr. Talbert worked as a Trial Attorney in the Criminal Division of the U.S. Department of Justice in Washington, D.C., where he prosecuted a variety of federal criminal cases after being hired in the Attorney General’s Honors Program; as an Associate at the law firm of Stoel Rives LLP in Seattle, Washington, in the firm’s Litigation Department and White Collar Defense Practice Group; and as an Assistant Counsel and Associate Counsel at the Office of Professional Responsibility of the U.S. Department of Justice where he investigated claims of prosecutorial misconduct and other allegations made against Department of Justice attorneys. He also served as a law clerk to the Honorable David R. Thompson (deceased), Circuit Judge, United States Court of Appeals for the Ninth Circuit.

Mr. Talbert received his Bachelor of Arts, magna cum laude in Economics, from Harvard University; his Master of Economics from the University of Sydney, Australia, which he attended on a Rotary Foundation Scholarship; and his Juris Doctor from the UCLA School of Law where he was the Chief Articles Editor for the UCLA Law Review.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Steven Chu, 40, of San Bruno, and Ben Guan, 35, of San Francisco, charging each with one count of conspiracy to commit federal program bribery and one count of federal program bribery, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Chu and Guan ran an illegal marijuana grow operation in Vallejo. In July 2020, Chu and Guan were notified that the building in which they maintained the operation was in violation of multiple laws, including city codes related to illegal drug activity, and that the city would take legal or administrative action if the violations were not corrected. Subsequently, Chu and Guan offered to pay and paid bribes to a Vallejo building inspector to clear the violations and ensure the city would not interfere with their operation. Chu and Guan paid the building inspector on at least six occasions. The payments totaled approximately $27,000.

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

If convicted, Chu and Guan each face a maximum statutory penalty of five years in prison and a $250,000 fine on the conspiracy charge and 10 years in prison and a $250,000 fine on the bribery 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Eric Lemoyne Willis, 46, of West Sacramento, was sentenced today to four years in prison for conspiracy to defraud the United States, theft of government property, and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Willis and co-defendants, Darron Dimitri Ross, 36, of Charlotte, North Carolina, and Joshua Bilal George, 39, of San Diego, conspired to steal public money from the Social Security Administration (SSA). Willis worked as an SSA Operations Supervisor in Sacramento and Lodi from 2015 until his departure in January 2018. During this timeframe, Willis used his authority as an SSA employee to access the confidential Social Security records of numerous Social Security beneficiaries. These records contained personally identifiable information (PII) including names, addresses, Social Security numbers, dates of birth, account numbers, family information, and benefit payment amounts. Willis would seek out PII for beneficiaries who used direct deposit for payment of large benefits. Willis then gave this PII to Ross who resided in North Carolina.

Ross and George’s roles in these crimes included calling numerous SSA field offices across the country and using the stolen PII to impersonate the beneficiaries. Ross also opened at least 44 online bank accounts under fraudulent identities to receive diverted SSA benefit payments. If Ross succeeded in convincing an SSA representative that he was the beneficiary, he would request that the beneficiary’s direct deposit account be changed to one of the conspirators’ fraudulent accounts. The SSA then proceeded to deposit benefit payments into the fraudulent account. The conspirators then withdrew the funds at ATMs and spent additional funds using debit cards associated with the accounts. Ross also transferred a portion of the stolen proceeds to Willis for his participation in these crimes. After the fraud was detected, SSA stopped depositing benefit payments.

The SSA has identified over 200 beneficiaries nationwide who were targeted by these crimes, and it suffered at least $696,912 in fraud losses caused by the defendants’ offenses. The defendants spent the proceeds of their crimes on, among other things, trips to Las Vegas and luxury items including Rolex watches. During sentencing, the Court ordered Willis to pay full restitution to the SSA.

“Mr. Willis abused his position with SSA for his personal gain, setting up an elaborate scheme with co-conspirators that defrauded those who needed it the most of over $690,000 in Social Security benefits. This sentence holds him accountable for his egregious criminal actions,” said Dawn Nolan, Special Agent in Charge, San Francisco Field Division, of the Social Security Administration Office of the Inspector General. “I thank the U.S. Attorney’s Office for prosecuting this individual and protecting the integrity of SSA programs.”

This case is the product of an investigation by the Social Security Administration – Office of the Inspector General, Department of Homeland Security – Office of the Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.

Ross and George pleaded guilty to similar charges and are scheduled to be sentenced by U.S. District Judge William B. Shubb in August 2022. They face up to 20 years in prison for wire fraud and up to five years in prison for conspiracy to defraud the United States. Ross also faces a mandatory sentence of two years in prison for aggravated identity theft, consecutive to any other sentence imposed. Each of these offenses also carries a maximum fine of $250,000. 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.

FRESNO, Calif. — On May 26, 2022, a federal grand jury indicted Kenneth Laitman, aka John Rodman, 78, of Fresno, for passport fraud, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in 1984, Laitman left his job as a stockbroker in New York and moved to California where he assumed the identity of John Rodman and worked at an endoscopy practice. The actual John Rodman died in 1950 at the age of four.

Laitman subsequently obtained various forms of identification, worked jobs, opened bank accounts, received government benefits, and took other actions while falsely using Rodman’s identity. This included a U.S. Passport that he obtained in 2004 and used to travel overseas on multiple occasions. He is charged with attempting to renew that passport in 2014.

This case is the product of an investigation by the Diplomatic Security Service, the Social Security Administration Office of Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.

If convicted, Laitman faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Below are pictures of Laitman through the years. Anyone with knowledge of his activities is encouraged to contact the FBI at 916-746-7000 or at tips.fbi.gov.

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SACRAMENTO, Calif. — U.S. District Judge John A. Mendez sentenced Juan Zamora Torres, 61, of Mexico, on Tuesday to 10 years in prison for his role in a conspiracy to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, from approximately July 29, 2019, to June 2, 2021, Torres conspired to distribute methamphetamine, including distributing over 4 pounds of methamphetamine on or about July 29, 2019. Additionally, from April 2019 to July 2019, Torres distributed over 8 pounds of methamphetamine and over a pound of heroin to a confidential source. On March 29, 2022, Torres pleaded guilty to the charges.

This case was the product of an investigation by the Federal Bureau of Investigation and the Drug Enforcement Administration. Assistant U.S. Attorneys Aaron D. Pennekamp and Angela L. Scott prosecuted the case.

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. — Margarita Aispuro-Camacho, 46, of Fresno, was arrested today after a federal grand jury indicted her for illegally selling morphine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Aispuro-Camacho sold the morphine in May 2020. At the time of the sale, she worked as a clerk for the Internal Revenue Service.

This case is the product of an investigation by the U.S. Treasury Inspector General for Tax Administration (TIGTA) and the Drug Enforcement Administration. TIGTA’s responsibilities include investigating misconduct by IRS employees. Assistant U.S. Attorney Joseph Barton is prosecuting the case.

If convicted, Aispuro-Camacho faces a maximum statutory penalty of 20 years in prison and $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.

SACRAMENTO, Calif. — U.S. District Judge John A. Mendez sentenced Paulette Carpoff, 51, of Martinez, to 11 years and three months in prison for her role in the biggest criminal fraud scheme in the history of the Eastern District of California, U.S. Attorney Phillip A. Talbert announced.

On Nov. 9, 2021, Paulette Carpoff pleaded guilty to conspiracy to commit an offense against the United States and money laundering. According to court documents, Carpoff played a key role in the fraud as Chief Operating Officer of DC Solar and the owner and operator of its so-called distribution arm.

Between 2011 and 2018, DC Solar manufactured mobile solar generators (MSG) that were mounted on trailers. The company touted the versatility and environmental sustainability of the mobile solar generators and claimed that they were used to provide emergency power to cellphone towers and lighting at sporting and other events. A significant incentive for investors were generous federal tax credits due to the solar nature of the MSGs. Investors would buy the MSGs without ever taking possession of them, paying a percentage of the sales price and financing the balance with DC Solar. Then the investors leased the MSGs back to DC Solar, which in turn purported to lease them to third parties. A portion of the lease revenue was supposed to go to the investors and a portion would be used to pay the investors’ debts to DC Solar.

But in fact, when the third‑party leases generated little income, the company paid early investors with funds contributed by later investors, and DC Solar became a Ponzi-like scheme. They sold solar generators that did not exist to investors, making it appear that solar generators existed in locations that they did not, creating false financial statements, and obtaining false lease contracts, among other efforts to conceal the fraud.

In reality, at least half of the approximately 17,000 solar generators claimed to have been manufactured by DC Solar did not exist. Contrary to what investors were told, approximately 94% of the revenue claimed by DC Solar Distribution from supposed third-party leasing actually came instead from transfers of new investor cash.

Paulette Carpoff controlled the Ponzi-like payments that hid the company’s lack of third-party lease revenue, caused fake engineering reports for MSGs that the company sold but never built, and helped fool investors into thinking that DC Solar was a success. Eventually, DC Solar simply stopped building the mobile-solar generators that it claimed to be selling to investors.

While carrying out the fraud, Carpoff and her husband enjoyed an excessive accumulation of wealth that included luxury real estate in Lake Tahoe, Las Vegas, the Caribbean, and Cabo San Lucas, over 150 luxury and collector vehicles, a private subscription jet service, and lavish jewelry. When search warrants were executed in this case in December 2018, law enforcement found over $18,000 cash in Carpoff’s purse, another over $18,000 cash in the master bedroom, over $22,000 cash in a safe in the master bedroom closet, and over $9,000 cash in the Carpoffs’ vehicles parked at their residence.

“Paulette Carpoff played an integral part in a massive criminal fraud scheme. Knowing that DC Solar at best could only expect to lease a tiny fraction of its mobile solar generators, she continued the lie about the high demand for DC Solar’s products,” said U.S. Attorney Talbert. “Thanks to the hard work of attorneys in this Office and agents in the investigating agencies, this fraud was stopped and millions of dollars have been recouped. It is my hope that Carpoff’s sentence will afford adequate deterrence to criminal conduct and the need to protect the public from further crimes of the defendant and promote respect for the law.”

“Mrs. Carpoff participated in and enjoyed the spoils of an egregious, complex fraud scheme that provided the Carpoff family and associates with a luxurious lifestyle and esteemed position in the community at the expense of their community and business contacts,” said Acting Special Agent in Charge Dennis Guertin of the FBI Sacramento Field Office. “Complex cases like these are truly a team effort. I am grateful to the dedicated FBI special agents, forensic accountants and professional staff who worked tirelessly to investigate this case in concert with our equally dedicated partners at IRS Criminal Investigation, FDIC Office of Inspector General, and U.S. Attorney’s Office. Our office is deeply committed to identifying and investigating financial fraud. We encourage anyone who is aware of fraud to reach out to our office or submit a tip by calling 1-800-CALL-FBI or submitting information online at tips.fbi.gov.”

“The Chief Operating Officer of DC Solar, Paulette Carpoff, who indulged herself in luxury goods while engaged in lies and deceit, is not an innocent spouse but rather an active conspirator who played a significant and integral role in the largest Ponzi scheme in the Eastern District of California,” said IRS Criminal Investigation Special Agent in Charge Mark H. Pearson. “Her lies and deception finally caught up to her, as her hunger to amass ill-gotten wealth and material goods led her astray. Today’s sentencing sends a clear message of ‘you will be held accountable’ to those involved in schemes to defraud. This case and the outcome is representation of the great work being accomplished when collaborating with our federal partners: the Federal Bureau of Investigation, the Federal Depository Insurance Corporation Office of Inspector General, and the United States Attorney’s Office, EDCA.”

“Today, Paulette Carpoff was sentenced and held accountable for conspiring with others to carry out a Ponzi scheme that defrauded investors of approximately $1 billion and funded her and her husband’s lavish lifestyle,” said Special Agent in Charge Jeffrey D. Pittano of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG). “The FDIC OIG is committed to working with our law enforcement partners to bring to justice those who undermine the integrity of the Nation’s financial system.”

This case was the product of an investigation by the Federal Bureau of Investigation, IRS Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorneys Christopher S. Hales and Kevin C. Khasigian prosecuted the case.

On Nov. 9, 2021, Jeff Carpoff was sentenced to 30 years in prison and ordered to pay $790.6 million in restitution for conspiracy to commit wire fraud and money laundering.

On Nov. 16, 2021, Joseph W. Bayliss, 46, of Martinez, was sentenced to three years in prison and ordered to pay $481.3 million in restitution for securities fraud and conspiracy in connection with the DC Solar scheme. On April 12, 2022, DC Solar CFO Robert A. Karmann, 55, of Clayton, was sentenced to six years in prison and ordered to pay $624 million in restitution. On May 31, 2022, former DC Solar employee Alan Hansen was sentenced to eight years in prison and ordered to pay $619 million in restitution.

Two defendants have pleaded guilty to criminal offenses related to the fraud scheme and are scheduled for sentencing: Ryan Guidry, 45, of Pleasant Hill, is scheduled to be sentenced on July 26, 2022, and Ronald J. Roach, 55, of Walnut Creek, is scheduled to be sentenced on Sept. 13, 2022. Guidry faces a maximum statutory penalty of 15 years in prison. Roach faces a maximum statutory penalty of 10 years prison. 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.

FRESNO, Calif. — Sabino Ramos, 46, of Bakersfield, was sentenced today to seven years and eight months in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on July 8, 2021, as Ramos was driving in Bakersfield, law enforcement officers attempted to stop him in order to serve an arrest warrant for probation violations. Ramos led officers on a high-speed chase, reaching speeds up to 90 mph, before losing control of his vehicle while exiting Highway 99 at Ming Avenue. Ramos then ran from pursuing officers but was eventually subdued. Ramos was found to be in possession of two handguns and approximately 30 rounds of ammunition. Ramos may not lawfully possess firearms or ammunition because of his prior felony convictions, including convictions for assault with firearm on a person and for possessing controlled substances for sale.

This case was the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bakersfield Police Department. Assistant U.S. Attorney Christopher D. Baker prosecuted the case.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Isidro Zuriel Cruz-Vizcarra, 23, of Sanger, charging him with attempting to illegally traffic fentanyl, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Cruz-Vizcarra mailed a parcel from a post office in Parlier to a residence in Iowa. The parcel was seized from the mail stream and searched. Inside, postal inspectors found about 1,000 counterfeit oxycodone M30 tablets. Similar to authentic oxycodone M30 tablets, these pills are small, round, and light blue or green in color with “M” stamped on one side and “30” on the other. Instead of oxycodone, however, they contain fentanyl, a potent opioid that can be deadly in small doses.

The case was the result of an investigation by FORT, (a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department) and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Justin J. Gilio and Laurel J. Montoya are prosecuting the case.

If convicted, Cruz-Vizcarra faces a minimum of five years in prison and a maximum of 40 years in prison and a fine of up to $5 million. 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 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.

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. — A federal grand jury returned an indictment today against Anthony Minor, 34, an inmate at the U.S. Penitentiary in Atwater, and Tilisha Morrison, 33, of Irving, Texas, charging them with conspiracy to distribute a controlled substance, conspiracy to provide contraband in a prison, and conspiracy to commit identity fraud, U.S. Attorney Phillip A. Talbert announced.

Morrison is also charged with three counts of distribution of a controlled substance, three counts of providing contraband in a prison, and three counts of identity fraud.

According to court documents, Minor and Morrison worked together to smuggle narcotics into USP Atwater—the facility where Minor is currently serving a federal prison sentence. At Minor’s direction, Morrison mailed packages containing concealed narcotics to various USP Atwater inmates three times between October 2021 and January 2022. Morrison marked each of the packages as “legal mail” from actual criminal defense attorneys in Dallas. In each package, Morrison included a piece of forged letterhead purportedly from the attorney listed as the sender.

This case is the product of an investigation by the Federal Bureau of Prisons Special Investigative Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Jessica A. Massey is prosecuting the case.

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

FRESNO, Calif. — Thomas Day, 41, of Modesto, was sentenced today to two years in prison for burglarizing a United States Post Office, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on the night of July 2, 2020, Day broke into the post office at 8271 Camanche Parkway South in Wallace, a town in Calaveras County. He used a glass breaking punch tool to shatter the glass on the door to the lobby area of the post office and then stole packages and keys to post office boxes belonging to other people and businesses.

This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Joseph Barton prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned a 19-count indictment Thursday against Quinten Giovanni Moody, aka Christano Rossi, 37, of Dublin, and Myra Boleche Minks, 46, formerly of Roseville, for drug trafficking, impersonating federal law enforcement officials, mail fraud, aggravated identity theft, and obstruction of justice, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between 2017 and 2022, Moody and Minks were part of an organization identified as the Moody-Minks organization, whose members engaged in a variety of criminal conduct. Specifically, Moody and Minks were the leaders of the organization’s unlawful transportation of marijuana from California to Georgia, Illinois, Michigan, Nevada, and Texas. Moody and Minks used couriers, airline employees, and a shipping company to transport the marijuana to various destinations. In addition, between April 2020 and May 2021, Minks impersonated special agents and employees of federal law enforcement agencies to seek nonpublic information related to organization members’ criminal conduct, to include:

• On April 13, 2020, Minks, posing as a DEA Special Agent, sought information concerning the victims of a fatal shooting on Interstate 880 in Oakland;
• On April 27, 2020, Minks, posing as an Assistant U.S. Attorney, sought information concerning a federal drug trafficking investigation regarding co-defendant Moody;
• On July 24, 2020, Minks, posing as a FBI Special Agent, attempted to dissuade a person from buying a property in Placer County, claiming that the seller was under investigation by the FBI;
• On Oct. 14, 2020, Minks, posing as an employee of the U.S. Secret Service, sought information from the Colma Police Department in San Mateo County regarding the location of a vehicle police had seized;
• On Jan. 25, 2021, Minks, posing as an Assistant U.S. Attorney, sought information regarding an ongoing murder investigation in San Francisco, including whether the person charged with the murder had cooperated with law enforcement; and
• On May 31, 2021, Minks, posing as an employee of the U.S. Department of Justice, sought information regarding a search warrant authorizing the disclosure of information regarding a cellphone number. Related to this impersonation episode, Minks and Moody have also been charged with impersonating an employee of the US DOJ and submitted to Phone Company 1 fake federal search warrants that sought the disclosure of GPS location data for a specific telephone number.

Also according to court documents, Moody, Minks, and co-defendant Jessica Tang, 48, of Sacramento, participated in a scheme to defraud the California Employment Development Department (EDD). The defendants obtained the names, social security numbers, and other personally identifiable information (PII) of identity theft victims. They submitted applications for unemployment insurance benefits in the names of these victims without their consent and knowledge. The applications contained false and fraudulent representations, including false statements about the identity of the applicants, the applicants’ occupation and previous employment, and false addresses. In total, the defendants fraudulently caused EDD to disburse in excess of $120,000.

Also according to court documents, Moody and Minks obstructed justice. In April 2022, a federal magistrate judge in Sacramento signed warrants authorizing federal agents to seize two of Moody’s vehicles: a 1969 Chevrolet Camaro and a 1956 Chevrolet pickup truck. Agents seized the vehicles and put them in a secure parking lot at the FBI’s Atlanta Field Office. Thereafter, between May 8 and May 21, Moody and Minks gave a tow truck company employee fake federal court orders that purported to order the release of Moody’s vehicles. Moody and Minks directed the tow truck driver to take the fake court orders to the FBI’s Atlanta Field Office and remove the vehicles from the FBI’s secure lot.

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Drug Enforcement Administration, the California Highway Patrol, the Placer County Sheriff’s Office, the Placer County Probation Department, the San Mateo County Sheriff’s Office, the Colma Police Department, the Reno-Tahoe Airport Authority Police Department, the Roseville Police Department, the San Francisco Police Department, the Atlanta Police Department, the U.S. Department of Labor – Office of Inspector General, and the California Employment Development Department. Assistant U.S. Attorneys Brian A. Fogerty, Justin L. Lee, and Sam Stefanki are prosecuting the case.

If convicted of the drug trafficking offense, Moody and Minks face a mandatory minimum penalty of five years in prison and a maximum statutory penalty of 40 years in prison and a $5 million fine. If convicted of the false personation offenses, Moody and Minks face a maximum statutory penalty of three years in prison and $250,000 fine on each count. If convicted of the conspiracy and mail fraud offenses, the defendants face a maximum penalty of 20 years in prison and a $250,000 fine. If convicted of aggravated identity theft, the defendants face a mandatory consecutive sentence of two years in prison. If convicted of the obstruction of justice, Moody and Minks face a maximum 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; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Adrian Rodriguez Cardenas, 22, of Bakersfield, was sentenced today to six years in prison for conspiring to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Jan. 11, 2021, Cardenas negotiated with and sold to an undercover law enforcement officer counterfeit OxyContin/oxycodone pills containing fentanyl. Cardenas thereafter negotiated a second sale of pills to the undercover officer. On Jan. 19, 2021, co-defendant Keisean Rockmore, 27, also of Bakersfield, drove Cardenas and a third person to a fast-food restaurant parking lot in Bakersfield to meet with and sell to the undercover officer 1,000 fentanyl-laced pills for the negotiated price of $2,900. At least one of the vehicle occupants possessed a firearm during the meeting, which he pointed at the undercover officer during the transaction. Rockmore then fled in his vehicle with Cardenas and the other passenger to a nearby apartment complex, where they exited the vehicle and attempted to elude pursuing law enforcement officers. After law enforcement officers found and arrested Cardenas, Rockmore and the other accomplice at the apartment complex, they discovered nearby a loaded firearm and more than 50 counterfeit OxyContin/oxycodone pills.

On April 29, 2022, co-defendant Rockmore was sentenced to 21 months in prison for possessing with intent to distribute fentanyl.

This case was the product of an investigation by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant U.S. Attorneys Christopher D. Baker and Justin J. Gilio are prosecuting the case.

This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

SACRAMENTO, Calif. — Philip Rich, 49, of West Sacramento, pleaded guilty today to one count of mail fraud and one count of aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between March 2019 and March 2021, Rich and co-defendant Kimberly Acevedo perpetrated a mail fraud scheme that involved theft of U.S. mail, identity theft, and unlawful possession of dozens of stolen bank cards. Generally, Rich and Acevedo obtained the personally identifiable information (PII) of victims and used that information to apply for new credit cards, debit cards, checkbooks, and other financial instruments to be sent to the victims’ real home addresses. The defendants then submitted change-of-address requests to USPS at www.usps.com using the victims’ PII. These change-of-address requests rerouted the victims’ mail to defendants’ shared home address, where they would open the mail and use its contents to make fraudulent purchases and cash fraudulent checks.

When federal agents executed a search warrant at defendants’ residence on Oct. 14, 2020, they seized dozens of notebooks filled with hundreds, if not thousands, of identity-theft victim PII. The notebooks were scattered throughout the house, though mainly located in defendants’ shared bedroom. In addition, agents recovered an envelope, labeled “ID Templates,” in the bedroom containing approximately 10-15 fake California Driver’s Licenses in the names of various victims, but featuring Rich and Acevedo’s photographs and fake authentication features. Agents also recovered the tools required to construct the fake IDs as well as a magstripe device. Further, agents recovered over 50 credit and debit cards in the home and approximately 40 checkbooks in victims’ names and in the names of Rich and Acevedo. In total, defendants’ scheme caused over $110,000 in actual and intended loss.

This case is the product of an investigation by the U.S. Postal Inspection Service and the Yolo County Sheriff’s Office. Assistant U.S. Attorneys Denise N. Yasinow and Robert J. Artuz are prosecuting the case.

Rich is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Sept. 15, 2022. Rich faces a maximum statutory penalty of 20 years in prison for mail fraud and a mandatory consecutive sentence of two years in prison for aggravated identity theft. He faces a maximum fine of $250,000 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.

Charges of mail fraud, aggravated identity theft, possession of stolen mail, and unlawful possession of 15 or more unauthorized access devices remain pending against Acevedo. The charges are only allegations; she is presumed innocent until and unless proved guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Tamara Manuel, 52, of Vallejo, was sentenced today by U.S. District Judge Troy L. Nunley to three years and three months in prison for carrying out a fraudulent scheme that involved stealing the identities of severely disabled individuals to obtain federal tax refunds, U.S. Attorney Phillip A. Talbert announced.

According to court documents, from February 1999 through August 2015, Manuel worked at Sonoma Development Center (SDC), which was a large, state-run facility serving the needs of individuals with developmental disabilities. In her role at SDC, Manuel had access to SDC patients’ personal identification information, including Social Security Numbers and birthdates.

Manuel began stealing SDC patients’ identities in 2011 and filing fraudulent tax returns in their names. In the returns, Manuel falsified, among other things, the purported taxpayers’ employment, wages, tax withholdings, and dependents. She did so to claim exemptions, tax credits, and refunds the purported taxpayers were not due. For example, Manuel falsely represented in a tax return that an SDC patient made over $23,000 in annual income as a forklift driver, had a dependent, and was owed a child tax credit. In reality, the patient had no income or dependents and was severely disabled, requiring observation and care 24 hours a day.

In total, Manuel stole the identities of at least 18 SDC patients to file 33 fraudulent tax returns in which she claimed refunds totaling over $77,000. Based on those fraudulent returns, Manuel obtained almost $50,000 in refunds from the Internal Revenue Service.

In addition to SDC patients, Manuel also stole others’ identities to file fraudulent federal tax returns in her and her son’s names. Specifically, to maximize her and her son’s tax refunds, Manuel included false dependent information in their returns. For example, in her son’s return for the 2016 tax year, which Manuel filed, she used the names and Social Security numbers of two individuals she falsely claimed were her son’s nephews and dependents.

This case was the product of an investigation by the IRS-Criminal Investigation. Assistant U.S. Attorney Matthew Thuesen prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today against Fidel Andrade, 33, of Stockton, and Neftali Castillo Montes, 40, a Mexican national residing in Stockton, charging them with conspiracy to distribute cocaine, distribution of cocaine, and unlawful use of a cellphone, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between January and October of 2020, Montes sold an FBI confidential source over 9 ounces of cocaine. Andrade, who was working as a correctional officer at the time, was Montes’ cocaine supplier. Additionally, officers discovered an additional 2 ounces of cocaine during a search warrant executed at Andrade’s house on March 3, 2021.

This case is the product of an investigation by the California Department of Corrections and Rehabilitation, Customs and Borders Protection, the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, and the Tracy Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

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

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. — During a coordinated law enforcement operation this morning, law enforcement agents and officers executed three search warrants and arrested four defendants in South Lake Tahoe and Sacramento, U.S. Attorney Phillip A. Talbert announced.

The following defendants were arrested today with a criminal complaint for their participation in trafficking methamphetamine and heroin in and around South Lake Tahoe:

Sarah Anderson, 32, of South Lake Tahoe; Fabian Gomez, 33, of South Lake Tahoe; Epifanio Ramirez, 47, of South Lake Tahoe; and
Joaleen Rogers, 53, of South Lake Tahoe.

The arrests were made as part of a continuation of Operation Bear Trap that began in 2020 to address the growing problem of methamphetamine distribution in South Lake Tahoe. Four additional defendants were charged last August with multiple drug and gun trafficking crimes as part of the same operation. Over the course of the operation, law enforcement agencies have interdicted methamphetamine, heroin, and numerous firearms, including “ghost” pistols and assault rifles (firearms manufactured without serial numbers, making them harder for law enforcement to trace). Today’s searches resulted in the recovery of a barn owl, which are a protected species under the Migratory Bird Treaty Act.

To date 36 individuals have been arrested in connection to Operational Bear Trap in California and Nevada on state and federal charges related to drug and firearms trafficking.

This case is the product of an investigation by the Federal Bureau of Investigation, the South Lake Tahoe Police Department, the El Dorado County Sheriff’s Office, the El Dorado County District Attorney’s Office, the Douglas County Sheriff’s Office, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Postal Inspection Service, the Drug Enforcement Administration, and the Sacramento County Sheriff’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.

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.

The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned a 14-count indictment today against Jesus Horacio Ramirez Hernandez, 40; Fernando Aldama Tinoco, 48; Walter Garcia-Ruiz, 34; Geovany Espinoza Norzagaray, 33; and Neftali Castillo Montes, 40; charging them with conspiracy to distribute methamphetamine, distribution of methamphetamine, and unlawful use of a cellphone, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Montes sold an FBI confidential source over 14 pounds of methamphetamine between May 2019 and December 2020. Surveillance, wiretaps, and additional investigation uncovered Garcia-Ruiz, Norzagaray, Tinoco, and Hernandez as higher-level distributors. A search of a storage unit controlled by Tinoco resulted in the discovery of 33 pounds of methamphetamine, 7 pounds of cocaine, and 2 pounds of counterfeit M30 pills containing fentanyl. Tinoco is additionally charged with one count of possession with intent to distribute methamphetamine, cocaine, and fentanyl.

This case is the product of an investigation by the California Department of Corrections and Rehabilitation, Customs and Borders Protection, the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, and the Tracy Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

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

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. — Sholanda Thomas, 38, an inmate at the Central California Women’s Facility (CCWF) in Chowchilla, pleaded guilty today to conspiracy and aggravated identity theft charges for submitting fraudulent unemployment insurance claims to the California Employment Development Department in her own name and the names of other inmates, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Thomas sent her own and other inmates’ personal identifying information to Christina Smith, who was on parole and had previously been an inmate at CCWF, to submit the fraudulent claims in their names. The underlying applications falsely represented that the inmates had been working as carpet cleaners, hair stylists, mechanics, and other jobs. This was impossible because they were incarcerated and ineligible for benefits. The loss to the EDD and the United States is over $250,000. Thomas split the proceeds with Smith and her other co-conspirators.

This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation’s Investigative Services Unit, and the EDD. Assistant U.S. Attorney Joseph Barton is prosecuting the case.

Thomas is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Sept. 12, 2022. For the conspiracy charge, she faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. For the aggravated identity theft charge, she faces a mandatory two-year sentence consecutive to any other sentence 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.

Smith pleaded guilty and was sentenced to five years in federal prison in September 2021.

SACRAMENTO, Calif. — Akrum Alrahib, 43, of Miami, Florida, was sentenced today to five years in prison and ordered to pay over $10 million in restitution for conspiring to commit mail fraud in non-cigarette tobacco schemes that defrauded the State of California of over $10 million in unpaid excise taxes, U.S. Attorney Phillip A. Talbert announced.

Non-cigarette tobacco (known as Other Tobacco Products or OTP) consists of tobacco products such as cigars, chewing tobacco, and leaf tobacco. During the relevant time period, California imposed an average excise tax of about 28.13% of the wholesale cost of the OTP between April 2016 and June 2016; 27.30% between July 2016 and June 2017; and 65.08% between July 2017 and December 2017. California licensed tobacco distributors are required to collect this tax when they distribute the product within the state. The distributor must then submit to the California Department of Tax and Fee Administration (CDTFA) in Sacramento (formerly the Board of Equalization) monthly reports reflecting the amount of untaxed OTP sold in the previous month and the amount of excise tax owing, and the payment of the excise tax.

According to court documents, between April 2016 and December 2017, Alrahib led two conspiracies involving multiple individuals and businesses operating in California. As the leader, Alrahib provided untaxed OTP to various individuals and companies in California, knowing that the products would be sold illegally without collecting the required excise tax, resulting in a loss to the State of California of over $10 million in tax revenue.

“Today’s sentence is the result of a highly successful, collaborative effort involving federal and state investigators and prosecutors, working side-by-side,” U.S. Attorney Talbert stated. “We will continue to root out illegal conduct and tax evasion in the tobacco products industry.”

“The primary goal of ATF in combating tobacco trafficking is to enforce the federal laws relating to the trafficking of domestically produced and counterfeit cigarettes and tobacco products,” said Special Agent in Charge Patrick Gorman, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), San Francisco Field Division. “Partnerships are the backbone of law enforcement. ATF will continue to work alongside our partners to investigate incidents of illegal conduct and tax evasion of tobacco products.” 

“Tax evasion is a serious crime, depriving our communities of critical resources and exposing law-abiding businesses to unfair competition,” said California Department of Tax and Fee Administration Director Nick Maduros. “We will continue to work with federal and state prosecutors to bring tax evaders to justice.”

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the California Department of Tax and Fee Administration. Assistant U.S. Attorneys Rosanne L. Rust and Michael D. Anderson prosecuted the case.

SACRAMENTO, Calif. — Richard Beldon Waters III, 29, formerly of Contra Costa County, was sentenced today to four years in prison for bank fraud and possession of stolen U.S. mail, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between April and August 2020, Waters and co-defendant Desiree Bello aka Desiree Sanchez, 28, of Contra Costa County, perpetrated a mail theft and bank fraud scheme throughout Northern California.

The scheme involved stealing U.S. mail from residential mailboxes and harvesting bankcards, identification documents, financial information, checks, and personally identifiable information (PII) for use in fraudulent activity. Waters and Bello used the identification and PII of the mail theft victims to obtain money and property from banks and businesses.

On at least two occasions, Waters and Bello used identification documents and financial instruments of mail theft victims to purchase and lease vehicles from car dealerships. For example, on June 25, 2020, Bello entered a Hyundai dealership in Stockton to lease a new Hyundai Genesis G80 using a stolen identity. She made an initial $7,000 payment with a check in the victim’s name, and also submitted a lease application using the victim’s name, date of birth, California Driver’s License number, and Social Security Number. The dealership ultimately approved the application. Bello was able to drive the new G80, valued at approximately $55,490, off the lot.

Additionally, on two separate occasions in May 2020, Waters knowingly possessed stolen mail. On May 11, 2020, he was arrested in Folsom where he possessed over 300 pieces of stolen mail. Similarly, on May 18, 2020, he was arrested in El Dorado Hills where he possessed five large trash bags of mail that he and his co-schemers had just stolen minutes earlier from a residential complex.

This case was the product of an investigation by the U.S. Postal Inspection Service, the Stockton Police Department, the Folsom Police Department, the Concord Police Department, the Pittsburg Police Department, the El Dorado County Sheriff’s Office, the Sonoma County Sheriff’s Office, and the California Highway Patrol. Assistant U.S. Attorney Robert J. Artuz prosecuted the case.

In March 2022, Bello was sentenced to four years and nine months in prison for committing the same crimes as Waters.

SACRAMENTO, Calif. —Glen Michael Martinka, 72, of Phoenix, Arizona, pleaded guilty today to mail fraud, U.S. Attorney Phillip A. Talbert announced.

According to court documents, beginning no later than Nov. 1, 2009, and continuing through approximately April 2012, Martinka, in his role as part owner and manager of a brokerage firm known as TSG Empire Roadrunner LLC, knowingly engaged in a false billing scheme to defraud a food company whose products the brokerage firm sold to various retailers and distributors. Martinka provided invoice numbers to his co-defendant Jeffrey Scott Davis, who, at the time, was the national sales manager for the food company. Davis then approved and submitted invoices on TSG Empire Roadrunner LLC letterhead for charges the brokerage firm was not entitled to receive. The false invoices also directed the food company to send payments to an Arizona address that Martinka controlled, rather than the brokerage firm’s headquarters where legitimately owed commissions were sent. Martinka split the fraudulently obtained money with Davis by directing checks made payable to Davis be mailed to Davis in California.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.

Martinka is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Sept. 12, 2022. Martinka faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 or twice the gain or loss, and a three-year term of supervised release. 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.

Mail fraud and conspiracy charges remain pending against Davis. The charges are only allegations; the defendant is presumed innocent until and unless proved guilty beyond a reasonable doubt.

FRESNO, Calif. — Ruben Chavez III, 36, of Merced, was arrested today, after a federal grand jury indicted him on Thursday for credit card fraud and related identity theft, U.S. Attorney Phillip A. Talbert announced.

According to court documents, from April 2021 through March 2022, Chavez obtained victims’ credit cards and used them to make over $60,000 in fraudulent purchases at retail stores. He also changed the victims’ mailing addresses to his own address and created fake identification cards in their names to help further his fraud.

This case is the product of an investigation by U.S. Postal Inspection Service. Assistant U.S. Attorney Joseph Barton is prosecuting the case.

If convicted, Chavez faces a maximum statutory penalty of 10 years in prison and fine of up to $250,000 for the credit card fraud, and a mandatory two-year consecutive sentence for the 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.

SACRAMENTO, Calif. — United States Attorney Phillip A. Talbert announced today that Minas Kochumian M.D., a physician previously practicing in the Los Angeles area, has paid $9,486,287 to resolve allegations that he submitted false claims to Medicare and Medi-Cal for procedures and tests that were never performed. These payments include nearly $5.5 million paid by Kochumian as criminal restitution following his guilty plea to one count of health care fraud, in a separate criminal case filed in the Central District of California.

The civil settlement resolves contentions by the United States and the State of California that Kochumian, over a period of more than six years ending in April 2018, submitted claims to Medicare and Medi-Cal for procedures, services, and tests that were never conducted or administered to patients, including injections of medication designed to treat osteoarthritis and osteoporosis, drainage of tailbone cysts, and the removal and destruction of various growths. As part of the settlement agreement announced today, Kochumian admitted that he intentionally submitted false claims for payment with the intent to deceive the United States and California. In doing so, Kochumian violated both the federal False Claims Act and the California False Claims Act. Those statutes allow the government to recover damages and penalties for the presentation of false claims for payment to the United States and the State of California, respectively.

The civil settlement with Kochumian resolves allegations originally brought in a lawsuit filed by relators Elize Oganesyan and Damon Davies, Kochumian’s former medical assistant and former informational technology consultant, under the whistleblower provisions of the False Claims Act. The Act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The whistleblowers who filed the case against Kochumian will receive more than $1.75 million as their share of the recovery announced today. The whistleblowers’ claims for attorneys’ fees are not resolved by this settlement.

“Investigating allegations of health care fraud is an important priority for the United States Attorney’s Office,” said U.S. Attorney Talbert. “My office will continue to work closely with our federal and state partners to protect our publicly funded health care programs from the type of egregious fraud and abuse that occurred in this case.” 

“When doctors misuse the state's Medi-Cal funds, they violate their Hippocratic Oath by harming a program which exists to help California’s Medi-Cal population, including the elderly, the sick and the vulnerable,” said Attorney General Bonta. “Dr. Kochumian’s alleged misconduct violated the trust of the patients in his care, and he selfishly pocketed funds that would otherwise have gone towards critical publicly funded healthcare services. My office is committed to ensuring honest care is provided to those that seek it through the Medi-Cal program. Today’s settlement sends a message: Deceitful actions that jeopardize state funds and prey on Medi-Cal recipients will not be tolerated. I applaud the important contribution of the two whistleblowers who alerted law enforcement to Dr. Kochumian’s unlawful actions.”

“Providers who exploit their status as medical professionals for financial gain undermine patient trust and waste valuable taxpayer dollars,” said Special Agent in Charge Steven Ryan, of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG remains committed to working tirelessly alongside our law enforcement partners to protect federal health care programs from fraud.”

The civil settlement was the result of an investigation by the Office of Inspector General of the U.S. Department of Health and Human Services. The civil lawsuit is captioned United States and State of California ex rel. Elize Oganesyan and Damon Davies v. Minas Kochumian, et al., Case No. 2:17-cv-2236 KJM JDP, and the parallel criminal case, which was filed in the Central District of California, is captioned United States v. Minas Kochumian, M.D., Case No. 2:20-CR-00423 (RGK).

A federal grand jury returned a four-count indictment Thursday against Marcus Asay, 66, of Fresno, charging him with making false tax returns, and concealing a matter with an intent to fraudulently secure Social Security disability benefits, U.S. Attorney Phillip A. Talbert announced.

According to court documents, from 2016-2018, Asay reported very little taxable income although he knew that his taxable income was more than $50,000. As the chairman of American Labor Alliance (ALA), Asay caused the organization to pay for hundreds of thousands of dollars’ worth of personal expenses, including over $50,000 to dating and escort websites and $120,000 in rent for Asay’s personal residences.

Asay also received Social Security disability benefits beginning in 2010. The benefits are available for individuals who cannot perform full-time work due to a qualifying disability. In approximately 2015, Asay began working full time as the chairman of ALA. From 2016-2019, Asay worked full time and was not entitled to receive benefits, but he concealed this fact from the Social Security Administration. During this time, the Social Security Administration paid Asay and a dependent over $90,000.

This case is the product of an investigation by the IRS Criminal Investigation, Social Security Administration Office of the Inspector General, the U.S. Department of Labor, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Michael G. Tierney, Stephanie M. Stokman, and Alexandre M. Dempsey are prosecuting the case.

If convicted of filing a false tax return, Asay faces a maximum statutory penalty of three years in prison and a fine of up to $100,000 for each count. If convicted of concealing and failing to disclose a matter related to Social Security Benefits, Asay faces a maximum statutory penalty of five years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Asay is also charged with fraud and money laundering offenses in a separate case, USA v. Agricultural Contracting Services Association et al., 1:19-cr-003-DAD. That case is set for trial in November 2022. According to court documents, between March 2016 and March 2017, ALA, Asay, and Antonio Gastelum, of Fresno, carried out a scheme to provide workers’ compensation coverage to clients and issued Certificates of Liability to clients that included names of insurers and false policy numbers. ALA allegedly collected at least $2.8 million in workers’ compensation premiums. If convicted, the defendants face a maximum sentence of 20 years in prison and a fine up to $250,000. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned two indictments today charging two Fresno residents with violations of federal firearm laws, U.S. Attorney Phillip A. Talbert  announced.

Mike Marty Hernandez, 26, was charged with one count of being a felon in possession a firearm. According to court documents, on May 23, 2022, Hernandez was arrested after law enforcement officers observed him in possession of a loaded 9 mm handgun equipped with a large capacity magazine. In 2019, Hernandez was convicted of threatening a public official and is prohibited from possessing a firearm.

Julio Cesar Lopez, 33, was charged with one count of being a felon in possession a firearm. According to court documents, on May 17, 2022, Lopez was found to be in possession of a .45‑caliber semi-automatic firearm. The gun was loaded and equipped with a 13‑round magazine. A subsequent search of Lopez’s residence recovered a sawed-off shotgun and approximately 50 rounds of ammunition. Lopez has been convicted in Fresno County of burglary, evading a peace office and firearms offenses.

These cases are the product of investigations by the Federal Bureau of Investigation and the Fresno Police Department Multi-Agency Gang Enforcement Consortium. The California Department of Corrections and Rehabilitation assisted in the investigation of Lopez. Assistant U.S. Attorney Antonio J. Pataca is prosecuting the case.

If convicted, the defendants face 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; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

These cases are being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Michael Mahoney, 29, of Fairfield, charging him with possessing a firearm with an obliterated or altered serial number and possessing an unregistered short-barreled shotgun, U.S. Attorney Phillip A. Talbert announced.

Mahoney is the third individual to be indicted in the Eastern District of California based on an investigation into a brutal beating at the clubhouse for the Vallejo chapter of the Hells Angels Motorcycle Club. The other two defendants—Jaime Alvarez and Dennis Killough Jr.—were indicted by a grand jury on May 27, 2022.

According to court documents, in October 2021, two different victims—both of whom were members of a different motorcycle club that is considered a “puppet” (or subordinate) club of the Hells Angels—were beaten by Mahoney, Alvarez, Killough, and other club members based on perceived infractions of the Hells Angels’ rules.

According to court documents, on Dec. 8, 2021, law enforcement executed a search warrant at Mahoney’s Fairfield home and found several firearms, including a Smith & Wesson .38-caliber revolver with a serial number that had been scratched off, as well as a Sears & Roebuck 12‑gauge shotgun with a barrel that had been sawed off to approximately 12.75 inches in length. Mahoney had not registered his ownership of this short-barreled shotgun with the National Firearms Registration and Transfer Record, as required by federal law.

This case is the product of an investigation by the Solano County District Attorney’s Office, the Solano County Sheriff’s Office, the Vacaville Police Department, the Vallejo Police Department, the Fairfield Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Aaron D. Pennekamp and Jason Hitt are prosecuting the case.

If convicted of possessing a firearm with an obliterated or altered serial number, Mahoney faces a maximum statutory penalty of five years in prison and a $250,000 fine. And if convicted of possessing an unregistered short-barreled shotgun, Mahoney faces a maximum statutory penalty of 10 years in prison and a $10,000 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 being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Marcello Marlo Rivera, 48, of Lodi, charging him with possession with intent to distribute methamphetamine and being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on May 11, 2022, a search was conducted at Rivera’s Lodi residence. Agents found several large bags with methamphetamine residue and a trail of residue leading to the toilet and on the toilet seat. They also found drug packaging materials, a digital scale with similar residue, thousands of dollars of cash, and a magazine containing 17 rounds of 9 mm ammunition. Rivera is prohibited from possessing ammunition due to multiple prior felony convictions, including for sexual assault and domestic violence.

This case is the product of an investigation by the Drug Enforcement Administration, the California Highway Patrol, and the Lodi Police Department. Assistant U.S. Attorney David Spencer is prosecuting the case.

If convicted, Rivera faces a maximum statutory penalty of 20 years in prison and a $1 million fine on the drug charge and 10 years in prison and a $250,000 fine on the ammunition 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.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

SACRAMENTO, Calif. — A federal grand jury in San Francisco returned a three-count indictment today against Melissa Saurwein, 43, of Martinez, charging her with making false statements, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Saurwein, who is a Special Agent with Homeland Security Investigations, made false statements to the Office of the U.S. Attorney and to the Department of Homeland Security Office of Inspector General to conceal a personal romantic relationship she had with a witness in a case that was previously prosecuted in the Northern District of California, United States v. Job Torres Hernandez, 4:17-cr-462-JSW. The judgement in that case was vacated on the motion of the government due to the conduct of Saurwein. The U.S. Attorney’s office for the Northern District was recused from this case, which is proceeding in the United States District Court in San Francisco.

This case is the product of a joint investigation by the Department of Homeland Security Office of Inspector General and the Immigration and Customs Enforcement Office of Professional Responsibility. The U.S. Attorney’s office for the Northern District was recused from this case, which is proceeding in the U.S. District Court in San Francisco. Assistant U.S. Attorney Audrey B. Hemesath is prosecuting the case.

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

SACRAMENTO, Calif. — On June 2, 2022, a federal grand jury returned a four-count indictment against Victor Angeles Serrano Nash, 27, of Olivehurst, charging him with possession with intent to distribute fentanyl, dealing in firearms without a license, and two counts of possession of a machine gun, U.S. Attorney Phillip A. Talbert announced.

Nash is scheduled to make an initial appearance before U.S. Magistrate Judge Kendall J. Newman on June 6, 2022.

According to court documents, between Aug. 18, 2021, and Nov. 23, 2021, Nash sold counterfeit M-30 pills containing fentanyl and at least eight firearms to an undercover agent and criminal informant. Several of the firearms were reported stolen, and two were AR-15 style pistols with switches that converted them to machine guns.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Yolo County District Attorney’s Office, the Sacramento Police Department, the Sacramento Sheriff’s Office, the California Department of Corrections and Rehabilitation Special Services Unit, and the Sutter County Sheriff’s Office. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.

If convicted, Nash faces a minimum statutory penalty of five years and maximum of 40 years in prison and a $5  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 being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

SACRAMENTO, Calif. — On June 2, 2022, a federal grand jury returned a four-count indictment against Victor Angeles Serrano Nash, 27, of Olivehurst, charging him with possession with intent to distribute fentanyl, dealing in firearms without a license, and two counts of possession of a machine gun, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between Aug. 18, 2021, and Nov. 23, 2021, Nash sold counterfeit M-30 pills containing fentanyl and at least eight firearms to an undercover agent and criminal informant. Several of the firearms were reported stolen, and two were AR-15 style pistols with switches that converted them to machine guns.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Yolo County District Attorney’s Office, the Sacramento Police Department, the Sacramento Sheriff’s Office, the California Department of Corrections and Rehabilitation Special Services Unit, and the Sutter County Sheriff’s Office. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.

If convicted, Nash faces a minimum statutory penalty of five years and maximum of 40 years in prison and a $5  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 being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

FRESNO, Calif. — Leah Guillen, 39, of Madera, was sentenced today by U.S. District Judge Dale A. Drozd to three years and three months in prison for bank fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in early 2018, Guillen obtained the name, Social Security account number, and date of birth of an individual. Guillen then used this information to impersonate the victim and fraudulently gain access to the victim’s bank accounts at Golden1 Credit Union. Using an unauthorized debit card, Guillen drained the victim’s bank accounts over a three-month period between April 18, 2018, and June 30, 2018, causing a loss in excess of $210,449.

This case was the product of an investigation by the Federal Bureau of Investigation, the U.S. Postal Inspection Service, and the Madera Police Department. Assistant U.S. Attorney Henry Z. Carbajal III prosecuted the case.

FRESNO, Calif. — Mario Garcia, 28, of Fresno, pleaded guilty today to conspiring to distribute more than 40 grams of fentanyl, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between Oct. 2 and Dec. 16, 2020, Mario was incarcerated at the Fresno County Jail in an unrelated case. From inside the jail, he used the jail’s telephones to contact his brother Isaiah Garcia, 19, and discuss a plan to distribute counterfeit M30 pills containing fentanyl to Isaiah’s customers. On Dec. 16, 2020, law enforcement executed a search warrant at Isaiah’s residence and seized about 1,200 counterfeit M30 fentanyl pills.

This case was the product of an investigation by FORT, a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.

Mario Garcia is scheduled to be sentenced on Aug. 29, 2022. He faces a mandatory minimum statutory penalty of five years in prison and a maximum of 40 years in prison and a $5 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.

Charges are pending against Isaiah Garcia for conspiracy to distribute and possess with intent to distribute fentanyl and possession with intent to distribute fentanyl. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

FRESNO, Calif. —Albert Dominguez Jr., 52, of Ceres, pleaded guilty today to conspiring to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Dominguez conspired with Leonor Sarabia-Ramirez, 52, of Modesto, to distribute and did, in fact distribute, 5 pounds of methamphetamine to Joseph Phillip Mar, 54, of Ceres, at a residence in Ceres. Sarabia previously pleaded guilty and was sentenced to 13 years in prison. Mar is scheduled for a jury trial on Nov. 29, 2022.

Dominguez is scheduled to be sentenced by Judge Dale A. Drozd on Aug. 29, 2022. Dominguez faces a maximum statutory penalty of life in prison, a mandatory minimum penalty of 10 years 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.

This case is the product of an investigation by the Drug Enforcement Administration, the Central Valley High Intensity Drug Trafficking Area (HIDTA) Task Force, the Multi-Jurisdictional Methamphetamine Enforcement Team (Cal-MMET), and the Stanislaus Drug Enforcement Agency. Assistant U.S. Attorney Karen Escobar is prosecuting the case.

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. —Joel Jose Rueda, 29, of Fresno, pleaded guilty today to escaping from the custody of the Bureau of Prisons, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Rueda had been serving a federal sentence for being a felon in possession of a firearm when he escaped from federal custody in December 2021. He was later arrested by Fresno police officers following a traffic stop on March 11, 2021. During the stop, he attempted to flee and resisted arrest. After pleading guilty in Fresno County Superior Court to resisting the officers’ arrest, he was brought to federal court to face an escape charge and quickly entered his guilty plea.

This case is the product of an investigation by the U.S. Marshals Service. Assistant U.S. Attorneys Justin Gilio and Karen Escobar are prosecuting the case.

Rueda is scheduled for sentencing before U.S. District Judge Jennifer L. Thurston on Sept. 9, 2022. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Francisco Javier Melgoza, 41, a Delano resident, pleaded guilty today to being a felon in possession of ammunition, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on June 25, 2021, a police officer encountered Melgoza driving a motorcycle in Shafter and discovered that Melgoza possessed a Polymer P80 9 mm handgun loaded with five rounds of ammunition, a 31-round high-capacity 9 mm magazine, and 16 grams of methamphetamine. Melgoza is prohibited from possessing ammunition because he has five prior felony convictions, including for grand theft auto, vehicle theft, possession of a controlled substance for sale, and two convictions for being a felon in possession of a firearm.

This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Shafter Police Department. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.

Melgoza is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Sept. 9, 2022. Melgoza faces a maximum term of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.