Eastern District of California

FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jesus Ramos, 48, of Sinaloa, Mexico, charging him with distributing and possessing with intent to distribute fentanyl, eutylone, hydrocodone, and ketamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Oct. 13, 2021, after negotiating for the delivery 10,000 “pills” and “one of China”–a street term for synthetic heroin powder usually containing fentanyl–Ramos delivered pills containing fentanyl that weighed approximately 31 grams and approximately 2 pounds of a white powdery substance containing eutylone, hydrocodone, and ketamine. According to the Drug Enforcement Administration, 2 milligrams of fentanyl is considered a lethal dose. Ketamine is a schedule III pain reliever commonly used in anesthesia. Hydrocodone is a schedule II opiate used for severe pain. Eutylone is a schedule I stimulant, and is also known as “boot.”

This case is the product of an investigation by the Fresno High Impact Investigation Team (HIIT), which is a High Intensity Drug Trafficking Area Initiative (HIDTA) composed of law enforcement personnel from the Federal Bureau of Investigation; the DEA; the California Department of Justice; the California Highway Patrol; the Sheriff’s Offices of Fresno, Tulare, and Kings Counties; and the Fresno Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.

If convicted, Ramos faces a minimum statutory penalty 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. — Katerrin McCray, 25, of Bakersfield, was charged today by a federal grand jury with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Jan. 15, 2022, law enforcement officers attempted to stop a vehicle in which McCray was the passenger for traffic infractions in Bakersfield. The vehicle sped off and McCray discarded a loaded Glock Model 22 .40‑caliber handgun out the passenger window during the pursuit. Officers apprehended McCray and shortly afterwards located McCray’s handgun in the street where he discarded it, along with a high-capacity magazine and 21 rounds of 40-caliber ammunition. Because of his prior criminal convictions, including a 2017 conviction for being a felon in possession of firearm and a 2018 conviction for receiving known stolen property, McCray may not lawfully possess firearms or ammunition.

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 is prosecuting the case.

If convicted, McCray faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charge is only an allegation; 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. — Marcus Lawrence Weber, 26, of Sacramento, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on March 16, 2022, Weber had four pending felony arrest warrants when officers located him driving in Roseville. When they tried to pull him over to arrest him, Weber led them on a car chase. Eventually, Weber stopped his car and fled on foot, wearing a black ski mask. He ran into a creek bed, where he dropped a Ruger 5.7 firearm and was eventually arrested. The firearm was loaded with an extended magazine and had a round in the chamber. Weber is prohibited from possessing firearms or ammunition because he has previously been convicted of felony offenses.

This case is the product of an investigation by the Sacramento Police Department, the Sacramento County District Attorney’s Office, the Placer County Sheriff’s Office, and the Placer County District Attorney’s Office, with the assistance of the Federal Bureau of Investigation’s Safe Streets Task Force and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

Weber is scheduled to be sentenced on Aug. 2, 2022. He faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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. — Patricia Castaneda, 38, of Redwood City, was sentenced to 33 months in prison and her brother, Eric Castaneda, 37, also of Redwood City, was sentenced to 18 months in prison by U.S. District Judge Kimberly J. Mueller for their roles in a scheme that involved the theft and interstate sale of Apple MacBooks, U.S. Attorney Phillip A. Talbert announced.

In addition, Judge Mueller ordered Patricia Castaneda to pay $4,077,832 in restitution and ordered Eric Castaneda to pay $2,283,155 in restitution.

According to court documents, Patricia Castaneda worked in the School of Humanities and Sciences at a private university in Stanford, California. In her position, Patricia Castaneda’s duties included ordering MacBooks for university faculty and staff. In 2009 or 2010, Patricia Castaneda began stealing MacBooks she ordered and selling them for cash. Initially, Patricia Castaneda sold the stolen MacBooks to an individual she met on Craigslist. In approximately February 2016, Patricia Castaneda began giving the stolen MacBooks to Eric Castaneda to sell to an individual named Philip James who, in turn, resold and shipped the MacBooks from Folsom to buyers outside California.

In total, the cost to the university of MacBooks Patricia Castaneda stole was over $4 million. That amount includes the cost to the university of approximately 800 stolen MacBooks Eric Castaneda sold to James, which was approximately $2.3 million.

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

In a separate case, on April 11, 2022, James pleaded guilty for his role in the scheme.

FRESNO, Calif. — Jesus Adrian Pena-Gamez, 33, a Mexican national unlawfully residing in Bakersfield, was sentenced today to five years and three months in prison for possessing with the intent to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on April 7, 2021, Pena-Gamez and co-defendant Carlos Ivan Campana met in the parking lot of a Bakersfield restaurant to sell to a person 15,000 counterfeit M30 pills containing fentanyl. During the meeting, Pena-Gamez and Campana were arrested and law enforcement officers recovered from Pena-Gamez’s vehicle approximately 3 pounds of pills containing a detectable amount of fentanyl.

Charges are pending against Campana for distribution of fentanyl and methamphetamine on three prior occasions between November 2020 and April 2021. On April 6, 2022, a bench warrant was issued for Campana’s arrest for violating pretrial release conditions and his whereabouts currently are unknown. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.

FRESNO, Calif. — Kenneth Shane Patterson, 44, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to five years and six months in prison and ordered to pay $1.9 million in restitution for wire fraud, bank fraud, and evading the payment of taxes, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Patterson convinced a small business owner to give him more than $1 million over approximately 31 months so that Patterson could acquire a skilled nursing facility in Pasadena. Patterson promised to then sell the facility to the business owner at below market value. Patterson told the business owner that he needed the money to clear liens and pay other expenses so the deal would close. In reality, Patterson never actually intended to buy the facility and instead spent the money on unrelated business expenses and his own gambling.

In addition to defrauding the business owner, Patterson defrauded Bank of America in a check-kiting scheme by writing two checks totaling $230,000 from Patterson’s business account at JPMorgan Chase to another of his business accounts at Bank of America. The Chase account’s balance at the time was less than $10,000. After writing the checks, Patterson quickly transferred and spent the deposited funds before Bank of America realized Patterson’s check had bounced. Bank of America sustained a loss of approximately $150,000.

Additionally, Patterson evaded paying federal income tax from tax years as far back as 2003 through various methods of evasion, including having no personal bank accounts, incurring expenses on accounts not in his name, and dealing in a high volume of cash. Patterson pleaded guilty on Oct. 19, 2021.

This case was the product of an investigation by the Federal Deposit Insurance Corporation Office of Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Alexandre Dempsey prosecuted the case.

FRESNO, Calif. — Jose Jesus Torres Garcia, 30, of Fresno, was sentenced today by U.S.  District Judge Dale A. Drozd to six years in prison for illegally possessing fentanyl pills and a firearm, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in May 2021, law enforcement obtained evidence that Torres Garcia was using his social media account to advertise the sale of “M30” pills, which are counterfeit oxycodone pills laced with fentanyl. Based on that information, federal officers executed a search warrant at Torres Garcia’s residence and found a loaded, short-barrel rifle and several hundred fentanyl pills packaged for sale. Torres Garcia was charged with possessing fentanyl with intent to distribute it and possessing a firearm in furtherance of a drug trafficking crime. He pleaded guilty to both charges on Sept. 27, 2021.

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

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

SACRAMENTO, Calif. — Andrew Keffer, 44, previously of Chico, pleaded guilty today to theft of government property: specifically, FEMA benefits issued in connection with the 2018 Camp Fire, U.S. Attorney Phillip A. Talbert announced.

Following the 2018 Camp and Carr Fires, FEMA assistance was available to individuals who, as a result of the fires, had emergency needs for food, shelter, and personal items. To qualify for certain benefits, an individual’s primary residence—the place where the individual resided at the time of the fire—had to have been destroyed or damaged by the fire, among other eligibility criteria.

According to court documents, FEMA issued two checks to Keffer based on an application for FEMA benefits that falsely claimed Keffer’s primary residence had been destroyed in the Camp Fire. Keffer cashed the two checks knowing he was not a victim of the Camp Fire and was not entitled to the money. This case came to the attention of federal law enforcement through a tip from a member of the public.

This case is the result of investigations by the Department of Homeland Security, Office of the Inspector General with assistance from the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.

Keffer is scheduled to be sentenced by U.S. District Judge William B. Shubb on Aug. 15, 2022. Keefer faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 20 federal, state, and local agencies participate in the NCDF, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.

SACRAMENTO, Calif. — A 10-count indictment was unsealed today against Suneet Singal, 43, of El Dorado Hills, charging him with wire fraud and mail fraud, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between March 2017 and July 2017, Singal engaged in a scheme to make false representations in order to induce financing companies to provide funds to certain companies in the form of merchant cash advances, which are advances of money in exchange for promises to repay greater amounts of money from future receivables. To obtain the cash advances, Singal claimed that he was the owner of a company that operated a chain of fast-food franchises, but he did not actually own that company.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Miriam R. Hinman and Nicholas M. Fogg are prosecuting the case.

If convicted, Singal faces a maximum statutory penalty for each count of 20 years in prison and a fine of $250,000 or twice the gross gain or gross loss, whichever is greater. 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. — Christopher Lee, 69, of Auburn, was sentenced today to 30 years in prison for production of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Lee repeatedly used a webcam to produce child pornography involving a seven-year-old child by sharing a live-streamed video with an individual who lived in England.

“Today’s sentence assures the public that this defendant will be kept away from children,” U.S. Attorney Talbert said. “This defendant encouraged others to participate in crimes that hurt children, who are the most vulnerable members of our communities. The U.S. Attorney’s Office is committed to continuing its collaboration with our law enforcement partners to ensure that offenders like this defendant are prosecuted to the fullest extent of the law.”

“We appreciate the work in this joint investigation with the Placer County Sheriff’s Office with prosecution by the U.S. Attorney’s Office, Eastern District of California, that resulted in the rescue of a seven-year-old child,” said Tatum King, special agent in charge, HSI San Francisco. “Special thanks to Hertfordshire Constabulary (United Kingdom) for discovering the crime and HSI Attaché London for collaborating with HSI Sacramento to bring Mr. Lee to justice. This is another disturbing reminder of the dangers of the internet and the importance of working with our international partner law enforcement agencies via HSI’s extensive network of overseas attachés to respond quickly to crimes that exploit our most vulnerable victims.”

This case was the product of an investigation by Homeland Security Investigations (HSI) and the Placer County Sheriff’s Department. Assistant U.S. Attorney Lee S. Bickley prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. 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. — A federal grand jury returned a 21-count indictment Thursday against 18 individuals, charging them with illegally trafficking fentanyl, fentanyl analogue, methamphetamine, and cocaine as well as illegally possessing firearms, U.S. Attorney Phillip A. Talbert announced.

Horacio Torrecillas Urias Jr., 22, of Fresno, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl, conspiracy to distribute and to possess with intent to distribute cocaine and methamphetamine, conspiracy to distribute and to possess with intent to distribute fentanyl, conspiracy to possess with intent to distribute and distribute methamphetamine, conspiracy to possess with intent to distribute and to distribute fentanyl (two counts), conspiracy to possess with intent to distribute and to distribute cocaine, and distribution of fentanyl.

 Amadeo Sarabia Jr., 22, of Fresno, is charged with conspiracy to possess with intent to distribute and to distribute fentanyl and possession with intent to distribute fentanyl.

Justin Dwayne Riddle, 34, of Las Cruces, New Mexico, is charged with conspiracy to possess with intent to distribute and distribute methamphetamine.

Alma Garza, 21, of Fresno, is charged with conspiracy to distribute and to possess with intent to distribute cocaine and methamphetamine and distribution of fentanyl.

Juan Valencia Jr., 22, of Fresno, is charged with conspiracy to possess with intent to distribute and to distribute fentanyl and distribution of fentanyl.

Abel Lozano, 28, of Sanger, is charged with possession with intent to distribute methamphetamine.

 Henry Cox, 22, of Sanger, is charged with conspiracy to distribute and to possess with intent to distribute fentanyl and attempted distribution of fentanyl.

Alejandro Guzman, 28, of Fresno, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine and fentanyl and possession with intent to distribute methamphetamine and fentanyl.

Erica Ramirez, 22, of Fresno, is charged with conspiracy to distribute and to possess with intent to distribute fentanyl and possession with intent to distribute fentanyl.

Brayan Cruz, 24, of Fresno, is charged with conspiracy to possess with intent to distribute and to distribute fentanyl.

Jacob Valles, 26, of Fresno, is charged with possession with intent to distribute cocaine and fentanyl and possession of a firearm in furtherance of a drug trafficking crime.

Cody Fyfe, 22, of Fresno, is charged with possession with intent to distribute fentanyl.

Christian Harris-Blanchette, 26, of Fresno, is charged with possession with intent to distribute fentanyl.

Marvin Carreno, 23, of Fresno, is charged with possession with intent to distribute fentanyl.

 Victor Yair Torrecillas-Urias, 27, of Fresno, is charged with conspiracy to possess with intent to distribute and to distribute cocaine.

Oscar Jaramillo-Cortez, 26, of Fresno, is charged with conspiracy to possess with intent to distribute and to distribute cocaine and possession with intent to distribute cocaine.

Alex Garcia, 23, of Fresno, is charged with distribution of fentanyl.

Agustin Hernandez, 28, of Fresno, is charged with possession with intent to distribute fentanyl.

According to court documents, the investigation began after a series of fentanyl-pill overdoses in the Fresno area. These overdoses were caused by counterfeit oxycodone M30 tablets containing fentanyl, referred to on the street as M30s. Similar to authentic oxycodone M30 tablets, they are small, round, and light blue or green in color with “M” stamped on one side and “30” on the other. The investigation, dubbed “Operation Killer High,” aimed to search for the drug dealers believed to have supplied the toxic pills that caused the recent spike in fentanyl-related overdoses. The operation uncovered a large drug-trafficking ring led by Horacio Torrecillas Urias Jr., the self-proclaimed “M30 king of Fresno.”

According to the criminal complaint, Torrecillas Urias Jr. was obtaining, directly from sources in Mexico, tens of thousands of counterfeit M30 fentanyl pills and large quantities of fentanyl powder, cocaine and methamphetamine. He and his co-defendants were then distributing these illicit narcotics to drug dealers inside and outside of California. During the investigation, federal, state, and local law enforcement agents conducted traffic stops, intercepted packages, and executed residential search warrants that resulted in the recovery of over 55,000 counterfeit M30 fentanyl pills, 6 pounds of fentanyl powder, 10 pounds of methamphetamine, a pound of cocaine, 25 firearms, and hundreds of rounds of ammunition

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), the U.S. Postal Inspection Service, the Clovis Police Department, the Fresno County Sheriff’s Office, and the Fresno County District Attorney’s Office. The Bakersfield Police Department and the California Highway Patrol assisted in the case. Assistant U.S. Attorneys Justin J. Gilio and Laurel J. Montoya are prosecuting the case.

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

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.

If convicted, the defendants each face a statutory penalty range including a minimum of 10 years and a maximum of life in prison and fines up to $1 million to $10 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Rudy Tafoya, 54, of West Sacramento, charging him with being a felon in possession of a firearm and ammunition and possession of methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in May 2021, Tafoya was stopped for a traffic violation and found to be in possession of ammunition, a firearm, and methamphetamine. At that time, Tafoya was on supervised release for a previous conviction of being a felon in possession of a firearm. Tafoya is prohibited from possessing firearms or ammunition on account of six prior felony convictions, including two felony crimes of violence.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Yolo County District Attorney’s Office; and the West Sacramento Police Department. Assistant U.S. Attorney Emily Sauvageau is prosecuting the case.

If convicted, Tafoya faces a maximum statutory penalty of 10 years in prison and a $250,000 fine on the ammunition and firearm counts and up to an additional year for the methamphetamine count. Any sentence, however, would be determined at the discretion of the court after considering 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 three-count indictment today against Jeffrey James Bray, 36, of Stockton, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Bray sold at least six firearms to an undercover agent or confidential source in 2019. During the investigation, Bray also sold over 300 rounds of ammunition. Bray cannot lawfully buy or possess firearms or ammunition himself because he has sustained numerous felony convictions, including evading a police officer, vehicle theft, being a felon in possession of a firearm and ammunition, and twice for second degree burglary.

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 California Department of Corrections and Rehabilitation, the Yuba City Police Department, and the Sacramento Police Department. Assistant U.S. Attorney Alstyn Bennett is prosecuting the case.

If convicted, Bray faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; 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. — A federal grand jury returned a five-count indictment today against Dennis Falaschi, 75, of Aptos, California, charging him with conspiracy, theft of government property, and filing false tax returns, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Falaschi was the general manager for a public water district in Fresno and Merced Counties near the communities of Dos Palos, Firebaugh, and Los Banos. He exploited a leak in the Delta-Mendota Canal and engineered a way to steal over $25 million in federally owned water.

According to court documents, in 1992, Falaschi was informed that an old, abandoned drain turnout near milepost markers 94.57 and 94.58 on the Delta-Mendota Canal was leaking water from the Delta-Mendota Canal into a parallel canal that the water district controlled. The drain was connected to a standpipe on the bank of the Delta-Mendota Canal that used a gate and valve to redirect water from the Delta-Mendota Canal into the water district’s canal. The gate had been cemented closed years earlier. The cement had since cracked and water was coming through it.

Thereafter, Falaschi instructed an employee to install a new gate inside the standpipe so that the site could be opened and closed on demand. He later instructed the employee to install a lid with a lock on top of the standpipe and an approximate two-foot elbow pipe off the valve of the standpipe that angled down 90 degrees into the water district’s canal. The lid concealed the theft because it prevented people from seeing that the gate inside the standpipe was functional. The elbow pipe further concealed and expedited the theft because it enclosed the water flow from the Delta-Mendota Canal into the water district’s canal and was installed in such a way that it was generally submerged under the water.

Falaschi subsequently instructed employees to use the site to steal federal water from the Delta-Mendota Canal on multiple occasions until the site was discovered in April 2015. He used the proceeds of the theft to pay himself and others exorbitant salaries, fringe benefits, and personal expense reimbursements.

Additionally, Falaschi is charged with filing false tax returns in 2015 through 2017. According to court records, he failed to report over $900,000 in income to the Internal Revenue Service that he received from private water sales.

The case is the product of an investigation by the U.S. Department of the Interior’s Office of Inspector General, the IRS-Criminal Investigation, and the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph Barton is prosecuting the case.

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

SACRAMENTO, Calif. — Ricardo Manuel Duran, 37, of San Francisco, was sentenced Tuesday by U.S. District Judge John A. Mendez to four years and three 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. 20, 2020, Duran, who was serving a term of supervised release for a previous offense, was arrested in Lincoln. He was found to be in possession of a Smith and Wesson handgun and was further found to be in possession of heroin and methamphetamine. Duran has been convicted of six prior felonies – two of them for being a felon in possession of a firearm – and is prohibited from possessing a firearm.

This case was the product of an investigation by the Lincoln Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Alexis Klein 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. — Anthony West, 46, of Stockton, was sentenced today by U.S. District Judge John A. Mendez to four years and nine 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 25, 2018, law enforcement officers obtained a warrant to search West’s residence. During that search, officers found a loaded .40 caliber Smith & Wesson pistol in West’s bedroom closet. Prior to the search, West had been convicted of six felony drug offenses.

This case was the product of an investigation by the Stockton Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney Brian A. Fogerty prosecuted 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. — A Redding woman has signed a plea agreement admitting that she planned and participated in her own hoax kidnapping and agreeing to plead guilty to making materially false statements to FBI agents about the circumstances of her disappearance and committing mail fraud based on her being a kidnapping victim, U.S. Attorney Phillip A. Talbert announced today.

Sherri Papini, 39, of Redding, was charged in a criminal information filed today in the U.S. District Court with thirty-four counts of mail fraud and one count of making false statements. In a plea agreement, also filed today, Papini agreed to plead guilty to a single count of mail fraud and one count of making false statements. Papini was arrested on March 3 based on a criminal complaint filed that day.

The court has not yet scheduled a date for Papini to enter her guilty pleas.

This case is the product of an investigation by the FBI and the Shasta County Sheriff’s Office with assistance from the California Department of Justice’s Bureau of Forensic Services and Bureau of Investigation, and the California Highway Patrol. Assistant U.S. Attorneys Veronica M.A. Alegría and Shelley D. Weger are prosecuting the case.

Papini faces a maximum statutory penalty of five years in prison and a fine up to $250,000 for making false statements to a federal law enforcement officer. She faces a maximum statutory penalty of 20 years in prison and a fine up to $250,000 for the count of mail fraud. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.  The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Robert A. Karmann, 55, of Clayton, was sentenced today to six years in prison and ordered to pay $624 million in restitution for participating in a billion-dollar Ponzi scheme involving DC Solar, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Karmann was a certified public accountant (CPA) that DC Solar hired first as its Controller in 2014, and later as its Chief Financial Officer. DC Solar manufactured mobile solar generator units (MSG), which were solar generators that were mounted on trailers. The MSGs were sold to investors who were given generous federal tax credits, and who were falsely led to believe that there was extensive demand from third parties to lease these MSGs to create a revenue stream. In fact, that demand was virtually non-existent. DC Solar had instead become a fraud scheme that took new investor money to pay older investors, using circular transactions that were fraudulently disguised to look like real third-party lease revenue.

According to court documents, Karmann and the other co-conspirators, including company founder Jeff Carpoff, carried out an accounting and lease revenue fraud using the Ponzi-like circular payments. Carpoff and others lied to investors about the market demand for DC Solar’s MSGs and its revenue from leasing to third parties. Then Karmann, Carpoff, and others covered up these lies with techniques including false financial statements, false operation reports, and false written summaries of the supposed revenue from leasing MSGs to third parties. In 2016, 2017, and 2018, Karmann oversaw the hidden circular transfers of funds, delivered false financial information to another co-conspirator for use in tax returns and tax documents, provided false compiled financial statements to an investor representative for multiple funds, and provided other false information to investor representatives about DC Solar’s third-party leasing. Karmann also directed others in DC Solar’s accounting department, including one subordinate whom Karmann told to “make it up” when responding to a customer request for location reports on their MSGs. During these years that Karmann knowingly joined in the fraud, DC Solar pulled in over $600 million in investor funds as a result of this scheme.

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. His wife, Paulette Carpoff, 47, has pleaded guilty to conspiracy to commit an offense against the United States and money laundering, and is scheduled to be sentenced on May 10, 2022.

On Nov. 16, 2021, Joseph W. Bayliss 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.

Other defendants have pleaded guilty to criminal offenses related to the fraud scheme and are scheduled for sentencing: Alan Hansen, 50, of Vacaville, is scheduled to be sentenced on April 26, 2022; Ronald J. Roach, 54, of Walnut Creek, is scheduled to be sentenced on May 3, 2022; and Ryan Guidry, 44, of Pleasant Hill is scheduled to be sentenced on June 7, 2022.

This case is 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 are prosecuting the case.

Paulette Carpoff, Hansen, and Guidry face 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. — Steven Dale Jones, 43, of Fresno, was sentenced today to 11 and a half years in prison by U.S. District Judge Dale A. Drozd for receipt and distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.

The sentence imposed includes a term of supervised release of 20 years during which Jones’s access to minors, computers, and the internet will be restricted. He will also be required to register as a sex offender. The court has scheduled a hearing for June 27, 2022, to address restitution to victims.

According to court documents, Jones was detected by law enforcement investigators when he was sharing numerous child pornography files on a BitTorrent file-sharing network in December 2016. He admitted to investigating agents that he had used file-sharing programs for several years to obtain child pornography. He admitted in court, when pleading guilty, that between January 2012 and April 2017, he used a BitTorrent program and the TOR network to search for and download thousands of images of child pornography.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney David Gappa and Child Exploitation and Obscenity Section Trial Attorneys Alicia Bove and Nadia Prinz prosecuted the case.

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

SACRAMENTO, Calif. — Hector Absi, 51, of Las Vegas, Nevada, was sentenced today to two years in prison for conspiracy to commit mail fraud, wire fraud, and securities fraud, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Absi is the former head of the sales department of Marrone Bio Innovations Inc. (MBI), a company headquartered in Davis that produces “bio-based” pesticides. Absi also served as MBI’s Chief Operating Officer from January 2014 until his resignation in August 2014. MBI is a publicly traded company; its stock trades on the NASDAQ exchange under the ticker symbol “MBII.” As a publicly traded company, it is required to file quarterly and annual reports with the Securities and Exchange Commission (SEC). In its reports, MBI stated that it recorded revenue in accordance with generally accepted accounting principles (GAAP).

On Oct. 17, 2019, Absi pleaded guilty conspiracy to commit mail fraud, wire fraud, and securities fraud. According to his plea agreement, in order to increase sales, Absi sold MBI products to customers with side agreements that offered “inventory protection” under which MBI agreed to either repurchase the product from the customer or continue the date by which the customer would need to make full payment for the product. Under GAAP, revenue from sales that include such agreements cannot be recognized on the company’s books at the time of the sales. Between March 2013 and July 2014, Absi conspired with at least one other MBI employee to misrepresent to MBI’s accounting department, its external auditors, and the investing public that MBI had made no sales under such terms. By concealing the practice, Absi caused MBI to report a doubling of its revenue in 2013 in comparison to 2012. Absi also conspired to backdate the delivery of certain shipments of MBI’s products to enhance MBI’s reported revenues for the quarter. Absi received a performance-based bonus and exercised stock options during a time when MBI’s inflated revenue figures were being reported.

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

A restitution hearing is scheduled for June 13, 2022. 

A former contract manager for the California Department of Transportation (Caltrans) pleaded guilty today for his role in a bid-rigging and bribery scheme involving Caltrans improvement and repair contracts.

According to a plea agreement filed today in the U.S. District Court for the Eastern District of California in Sacramento, Choon Foo “Keith” Yong and his co-conspirators engaged in a conspiracy, from early 2015 through late 2019, to thwart the competitive bidding process for Caltrans contracts to ensure that companies controlled by Yong’s co-conspirators submitted the winning bid and would be awarded the contract. Yong is also charged with accepting bribes while working for Caltrans, a California state agency that receives significant federal funding. Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the payments and benefits Yong received exceeded $800,000. In addition to his guilty plea, Yong agreed to pay restitution and cooperate with the ongoing investigation.

“Today’s guilty plea is the first in the Antitrust Division’s ongoing investigation into bribery and bid rigging at Caltrans,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Given the Infrastructure Investment and Jobs Act’s $1.2 trillion authorization and the critical role of transportation infrastructure in our nation, rooting out bid-rigging schemes that cheat the competitive bidding process remains a top priority for the division and its Procurement Collusion Strike Force partners.” 

 

Yong received more than $800,000 of bribes in the form of cash payments, wine, furniture, and remodeling services on his home. 

Yong is scheduled to be sentenced on Aug. 22 by U.S. District Judge Kimberly J. Mueller. For the bid-rigging conspiracy, Yong faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $1 million or twice the gross pecuniary gain or twice the gross pecuniary loss resulting from the offense. For bribery concerning programs receiving federal funds, Yong faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $250,000 or twice the gross pecuniary gain or twice the gross pecuniary loss resulting from the offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and U.S. Sentencing Guidelines.

Today’s guilty plea is the first to result from a joint investigation being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California, and the FBI’s Sacramento Field Office as part of the Justice Department’s Procurement Collusion Strike Force (PCSF). 

In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. In fall 2020, the Strike Force expanded its footprint with the launch of PCSF: Global, designed to deter, detect, investigate and prosecute collusive schemes that target government spending outside of the United States. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending.

SACRAMENTO, Calif. — Philip James, 35, of Folsom, pleaded guilty today to transporting stolen property interstate, U.S. Attorney Phillip A. Talbert announced.

According to court documents, from October 2015 through June 2020, James purchased almost 1,000 stolen Apple MacBooks from multiple individuals, including Cory Beck, Eric Castaneda, and Jonas Jarut. After purchasing the MacBooks, James generally resold and shipped them from Folsom to buyers located outside California.

Beck worked in the information technology department at an electric vehicle and clean energy company based in Palo Alto, “Company 1.” Beginning in October 2015, Beck stole new MacBooks from Company 1 and sold them to James. In total, James purchased at least 100 MacBooks that Beck stole from Company 1.

Eric Castaneda’s sister, Patricia Castaneda, worked in the School of Humanities and Sciences at a private university in Stanford, California, “University 1.” Beginning in February 2016, Patricia Castaneda stole new MacBooks from University 1 and gave them to Eric Castaneda to sell to James. In total, James purchased from Eric Castaneda at least 800 MacBooks that Patricia Castaneda stole from University 1.

Jarut worked as a database administrator in the Graduate School of Education at a public university in Berkeley, “University 2.” Beginning in March 2019, Jarut stole new MacBooks from University 2 and sold them to James. In total, James purchased at least 90 MacBooks Jarut stole from University 2.

As part of his plea agreement, James agreed to pay restitution as follows: $2,283,155 to University 1; $256,485 to Company 1; and $209,057 to University 2.

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

Chief U.S. District Judge Kimberly J. Mueller is scheduled to sentence James on July 25, 2022. Jarut faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the court’s discretion after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

In separate cases, Eric Castaneda, Patricia Castaneda, Beck, and Jarut pleaded guilty for their roles in the scheme.

SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment Thursday against Marcus Lawrence Weber, 26, of Sacramento, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Weber had four pending felony arrest warrants when officers located him driving in Roseville. When they tried to pull him over to arrest him, Weber led them on a car chase. Eventually, Weber stopped his car and fled on foot, wearing a black ski mask. He ran into a creek bed, where he dropped a Ruger 5.7 firearm and was eventually arrested. The firearm was loaded with an extended magazine and had a round in the chamber. Weber is prohibited from possessing firearms or ammunition because he has previously been convicted of felony offenses.

This case is the product of an investigation by the Sacramento Police Department, the Sacramento County District Attorney’s Office, the Placer County Sheriff’s Office, and the Placer County District Attorney’s Office, with the assistance of the Federal Bureau of Investigation’s Safe Streets Task Force. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

If convicted, Weber faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; 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 jury found Dezmaighne McClain, 31, of Sacramento, guilty on Wednesday of three counts of being a felon in possession of firearms and ammunition, U.S. Attorney Phillip A. Talbert announced.

According to court documents, McClain, while on felony parole, sold a firearm to an individual on July 15, 2019, soon after meeting the person at the parole office. McClain sold the same individual another firearm on July 30, 2019, and continued to discuss potential firearms sales after that date. Evidence at trial showed that McClain also sold guns to others while on parole. McClain is prohibited from possessing firearms and ammunition based on his prior felony convictions, which include robbery, assault, and illegal possession of a firearm. During a search of McClain’s residence, agents found more firearms, ammunition, and an assault rifle style “ghost” gun hidden in the garage.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Michele Beckwith and Audrey Hemesath are prosecuting the case.

McClain is scheduled to be sentenced by U.S. District Judge William B. Shubb on July 11, 2022. McClain faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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. — Christine M. Iwamoto, 48, of Sacramento, was sentenced today to two years in prison and ordered to pay $481,200 in restitution for wire fraud and conspiracy to commit money laundering in relation to a scheme to divert funds from the California Department of Public Health, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Iwamoto was employed by the Office of AIDS within the California Department of Public Health until March 2018. The Office of AIDS is responsible for working on behalf of the State of California to combat the HIV and AIDS epidemic.

Between December 2017 and November 2018, Iwamoto participated in a scheme that was coordinated by Schenelle Flores, also employed at the Office of AIDS, to defraud the Office of AIDS. Flores, Iwamoto, other participants in the scheme, and their families and friends obtained at least $2 million in personal benefits, including cash and purchased items.

According to court documents, as part of the scheme, Flores directed a state contractor to make payments allegedly on behalf of the Office of AIDS and caused the contractor to charge those payments to the state. Flores caused the contractor to pay for personal expenses on its debit cards, order gift cards for personal use, and pay false invoices to shell companies for services allegedly provided to the Office of AIDS.

According to court documents, Iwamoto set up a shell company and coordinated with Flores to submit invoices to the state contractor. Those invoices falsely claimed that Iwamoto’s company had provided various consulting and meeting facilitation services to the Office of AIDS. Iwamoto received $450,000 in payments as a result of the invoices. Iwamoto then gave thousands of dollars in cash and blank checks to another employee of the Office of AIDS who was participating in the scheme. Iwamoto also participated in obtaining the gift cards from the state contractor and received hundreds of the gift cards for her personal use.

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the California Department of Public Health and the California Highway Patrol. Assistant U.S. Attorneys Miriam R. Hinman and Christopher S. Hales are prosecuting the case.

On March 3, 2022, Flores was sentenced to 70 months in prison and ordered to pay over $2 million in restitution in a related case, United States v. Flores, 2:21-cr-025 TLN.

Operation Copied and Removed Malware Known as “Cyclops Blink” from the Botnet’s Command-And-Control Devices, Disrupting the GRU’s Control Over Thousands of Infected Devices Worldwide. Victims Must Take Additional Steps to Remediate the Vulnerability and Prevent Malicious Actors From Further Exploiting Unpatched Devices.

The Justice Department today announced a court-authorized operation, conducted in March 2022, to disrupt a two-tiered global botnet of thousands of infected network hardware devices under the control of a threat actor known to security researchers as Sandworm, which the U.S. government has previously attributed to the Main Intelligence Directorate of the General Staff of the Armed Forces of the Russian Federation (the GRU). The operation copied and removed malware from vulnerable internet-connected firewall devices that Sandworm used for command and control (C2) of the underlying botnet. Although the operation did not involve access to the Sandworm malware on the thousands of underlying victim devices worldwide, referred to as “bots,” the disabling of the C2 mechanism severed those bots from the Sandworm C2 devices’ control.

“This court-authorized removal of malware deployed by the Russian GRU demonstrates the department’s commitment to disrupt nation-state hacking using all of the legal tools at our disposal,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “By working closely with WatchGuard and other government agencies in this country and the United Kingdom to analyze the malware and to develop detection and remediation tools, we are together showing the strength that public-private partnership brings to our country’s cybersecurity. The department remains committed to confronting and disrupting nation-state hacking, in whatever form it takes.”

“Through close collaboration with WatchGuard and our law enforcement partners, we identified, disrupted and exposed yet another example of the Russian GRU’s hacking of innocent victims in the United States and around the world,” said U.S. Attorney Cindy K. Chung for the Western District of Pennsylvania. “Such activities are not only criminal but also threaten the national security of the United States and its allies. My office remains committed to working with our partners in the National Security Division, the FBI, foreign law enforcement agencies and the private sector to defend and maintain our nation’s cybersecurity.” 

“This operation is an example of the FBI’s commitment to combatting cyber threats through  our unique authorities, capabilities, and coordination with our partners,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “As the lead domestic law enforcement and intelligence agency, we will continue pursuing cyber actors that threaten the national security and public safety of the American people, our private sector partners and our international partners.”

“The FBI prides itself on working closely with our law enforcement and private sector partners to expose criminals who hide behind their computer and launch attacks that threaten Americans’ safety, security and confidence in our digitally connected world,” said Special Agent in Charge Mike Nordwall of the FBI’s Pittsburgh Field Office. “The FBI has an unwavering commitment to combat and disrupt Russia’s efforts to gain a foothold inside U.S. and allied networks.”

On Feb. 23, the United Kingdom’s National Cyber Security Centre, the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, the FBI and the National Security Agency released an advisory identifying the Cyclops Blink malware, which targets network devices manufactured by WatchGuard Technologies Inc. (WatchGuard) and ASUSTek Computer Inc. (ASUS). These network devices are often located on the perimeter of a victim’s computer network, thereby providing Sandworm with the potential ability to conduct malicious activities against all computers within those networks. As explained in the advisory, the malware appeared to have emerged as early as June 2019, and was the apparent successor to another Sandworm botnet called VPNFilter, which the Department of Justice disrupted through a court-authorized operation in 2018.

The same day as the advisory, WatchGuard released detection and remediation tools for users of WatchGuard devices. The advisory and WatchGuard’s guidance both recommended that device owners deploy WatchGuard’s tools to remove any malware infection and patch their devices to the latest versions of available firmware. Later, ASUS released its own guidance to help compromised ASUS device owners mitigate the threat posed by Cyclops Blink malware. The public and private sector efforts were effective, resulting in the successful remediation of thousands of compromised devices. However, by mid-March, a majority of the originally compromised devices remained infected.

Following the initial court authorization on March 18, the department’s operation was successful in copying and removing the malware from all remaining identified C2 devices. It also closed the external management ports that Sandworm was using to access those C2 devices, as recommended in WatchGuard’s remediation guidance (a non-persistent change that the owner of an affected device can reverse through a device restart). These steps had the immediate effect of preventing Sandworm from accessing these C2 devices, thereby disrupting Sandworm’s control of the infected bot devices controlled by the remediated C2 devices. However, WatchGuard and ASUS devices that acted as bots may remain vulnerable to Sandworm if device owners do not take the WatchGuard and ASUS recommended detection and remediation steps. The department strongly encourages network defenders and device owners to review the Feb. 23 advisory and WatchGuard and ASUS releases.

The operation announced today leveraged direct communications with the Sandworm malware on the identified C2 devices and, other than collecting the underlying C2 devices’ serial numbers through an automated script and copying the C2 malware, it did not search for or collect other information from the relevant victim networks. Further, the operation did not involve any FBI communications with bot devices.

Since prior to the Feb. 23 advisory, the FBI has been attempting to provide notice to owners of infected WatchGuard devices in the United States and, through foreign law enforcement partners, abroad. For those domestic victims whose contact information was not publicly available, the FBI has contacted providers (such as a victim’s internet service provider) and has asked those providers to provide notice to the victims.  As required by the terms of the court authorization, the FBI has provided notice to the owners of the domestic C2 devices from which the FBI copied and removed the Cyclops Blink malware.

The efforts to disrupt the Cyclops Blink botnet were led by the FBI’s Pittsburgh, Atlanta and Oklahoma City Field Offices, the FBI Cyber Division, the National Security Division’s Counterintelligence and Export Control Section, and the U.S. Attorney’s Office for the Western District of Pennsylvania. Assistance was also provided by the Criminal Division’s Computer Crime and Intellectual Property Section and Office of International Affairs, as well as the U.S. Attorney’s Office for the Eastern District of California.

If you believe you have a compromised device, please contact your local FBI Field Office for assistance. The FBI continues to conduct a thorough and methodical investigation into this cyber incident.

FRESNO, Calif. — After a three-day trial, a jury found Charles Porter, 31, a resident of Yosemite National Park and Pomona, guilty today of attempted aggravated sexual abuse, abusive sexual contact, assault with intent to commit aggravated sexual abuse, assault with intent to commit abusive sexual contact, and assault by striking or wounding, U.S. Attorney Phillip A. Talbert announced.

According to evidence presented at trial, on April 14, 2020, in Yosemite National Park, Porter, an Aramark employee working and residing in Yosemite Valley, entered the victim’s cabin in employee housing at night while the victim was asleep and began to sexually assault the victim. The victim fought back, and during the struggle, Porter attempted to penetrate the victim. The victim was able to reach the door of his one-room cabin to call for help. Nearby neighbors heard his call for help, and they responded and physically removed Porter.

This case is the product of an investigation by National Park Service Special Agents and Law Enforcement Rangers. Assistant U.S. Attorneys Katherine E. Schuh and Laura Jean Berger are prosecuting the case.

Porter is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on July 8, 2022. Porter faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Dorothy Natividad, of Vallejo, has paid $116,900 in damages and civil penalties to resolve allegations that she knowingly made false statements to obtain benefits from both the Food Stamp/Supplemental Nutrition Assistance Program (SNAP) and the “Keep Your Home California” Unemployment Mortgage Assistance Program, U.S. Attorney Phillip A. Talbert announced.

The “Keep Your Home California” Unemployment Mortgage Assistance Program (UMA) was a federally funded program to help California homeowners struggling to pay their mortgages due to financial hardships. Keep Your Home California was funded by the Hardest Hit Fund, which was established in 2010 to provide targeted aid to families in states hit hard by the economic and housing market downturn caused by the financial crisis. This settlement resolves allegations that between April 2014 and August 2016, Natividad concealed more than $100,000 of household income that would have disqualified her from receiving aid through this mortgage assistance program. The United States similarly alleged that Natividad concealed income that would have disqualified her from participation in SNAP.

“The False Claims Act is a valuable tool for assuring that public assistance program funds are expended only on eligible individuals,” said U.S. Attorney Talbert. “This settlement demonstrates how the pursuit of civil remedies under the FCA and interagency cooperation can be used to recover fraudulently obtained benefits that should have gone to truly vulnerable families.”

“Natividad lied to get thousands of federal dollars for both mortgage assistance and SNAP by concealing income that would have disqualified her from receiving aid. SIGTARP, USDA and the United States Attorney’s Office have brought justice for a defendant who defrauded the Hardest Hit Fund, a federal program that helped unemployed homeowners stay in their homes,” said Melissa Bruce, Deputy Special Inspector General for the Troubled Asset Relief Program. “She has agreed to and repaid the improperly obtained funds as well as a penalty.”

“The accurate accounting and administration of federal feeding programs is essential to ensuring those in need of assistance receive it,” said Dustin Cladis, Special Agent in Charge, USDA OIG. “This settlement is a clear message that our agency along with our federal partners will protect the integrity of USDA programs and pursue those who submit false claims.”

The civil settlement resulted from a joint investigation by the United States Department of Agriculture Office of the Inspector General (USDA OIG) and the Office of the Inspector General for the Troubled Asset Relief Program (SIGTARP). Assistant U.S. Attorney Emilia P. E. Morris handled the case for the United States. The claims resolved by the settlement are allegations only, and there has been no determination of liability.

SACRAMENTO, Calif. — An Italian national and a U.S. national, both New York residents, were sentenced on charges of conspiring to transfer false identification documents on the darknet marketplaces AlphaBay Market and Dream Market. According to court documents, from at least from May 2015 until October 2017, defendants Andrea Alessandrini and Evan Hayes sold New York state driver’s licenses, fraudulent identity information for individuals (including fake social security numbers and birthdates), credit card holograms, and ATM skimmers on the darknet, all in exchange for cryptocurrency.

On April 4, 2022, the U.S. District Court for the Eastern District of California sentenced Evan Hayes, 28, of Buffalo, New York, to 18 months in prison, and on April 5, 2021, Alessandrini, 34, of Italy, was sentenced to 20 months in prison, for their roles in the charged identity fraud conspiracy. Alessandrini and Hayes pleaded guilty to the offenses on Nov. 16, 2020, and July 12, 2021, respectively.

According to court filings and statements made in connection with the defendants’ guilty pleas, Alessandrini created and operated the vendor account PlasticA on numerous darknet marketplaces, including AlphaBay Market and Dream Market. With his business partner, Hayes, Alessandrini sold over 300 fraudulent New York identity cards, four social security cards, 15 false birth certificates, 28 state identity card holograms, one ATM skimmer, and 410 “farmed” (i.e., stolen or fraudulently produced) identity packages to buyers in the Eastern District of California and elsewhere. Alessandrini operated the primary darknet accounts used to make these sales, while Hayes produced and mailed most of the fraudulent documents sold. On AlphaBay alone, Alessandrini and Hayes conducted between $250,000 and $400,000 worth of transactions between May 2015 and October 2017.

In connection with the case, the United States seized evidence concerning the wide range of fraudulent identity documents created and sold to buyers throughout the United States, evidence which has been shared with a range of law enforcement agencies for use in additional investigations. Finally, the United States forfeited the proceeds of the offense conduct, which included approximately $134,881 in U.S. currency, 14.78 bitcoins, 285 ounces of silver, 4 ounces of gold, and 22 prepaid Visa gift cards.

The FBI and the U.S. Postal Inspection Service investigated the case.

Senior Counsel Louisa K. Marion of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Paul Hemesath of the Eastern District of California prosecuted the case.

SACRAMENTO, Calif. — William Richter, 38, of Shasta County, pleaded guilty today to knowing possession of visual depictions of the sexual exploitation of minors, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Richter had been convicted of the same offense and was on federal supervised release when he committed this new crime on July 23, 2020. On June 6, 2013, Richter was sentenced to 51 months in prison in his prior case. In July of 2020, Richter was on supervised release when a law enforcement officer pulled over Richter 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 of pre-pubescents 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 medial 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.

Richter is scheduled to be sentenced by U.S. District Judge John A. Mendez on July 12, 2022. He faces a maximum statutory penalty of 20 years in prison, and a mandatory minimum sentence of 10 years, due to his prior conviction for this same offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

SACRAMENTO, Calif. – ESI Energy Inc. (ESI) was sentenced today in Cheyenne, Wyoming, for violations of the Migratory Bird Treaty Act (MBTA), announced Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division and U.S. Attorney L. Robert Murray for the District of Wyoming.

ESI is a wholly owned subsidiary of NextEra Energy Resources LLC, which in turn is a wholly owned subsidiary of NextEra Energy Inc. ESI owns other companies, many of which operate wind energy generation facilities throughout the United States, including in Wyoming, New Mexico, Arizona, California, Colorado, Illinois, North Dakota and Michigan, as well as other states.

ESI pleaded guilty to three counts of violating the Migratory Bird Treaty Act (MBTA), each based on the documented deaths of golden eagles due to blunt force trauma from being struck by a wind turbine blade at a particular facility in Wyoming or New Mexico, where ESI had not applied for the necessary permits. ESI further acknowledged that at least 150 bald and golden eagles have died in total since 2012, across 50 of its 154 wind energy facilities. 136 of those deaths have been affirmatively determined to be attributable to the eagle being struck by a wind turbine blade.

The court sentenced ESI, pursuant to a plea agreement, to a fine of $1,861,600, restitution in the amount of $6,210,991, and a five-year period of probation during which it must follow an Eagle Management Plan (EMP). The EMP requires implementation of up to $27 million (during the period of probation; more thereafter if a written extension is signed) of measures intended to minimize additional eagle deaths and injuries, and payment of compensatory mitigation for future eagle deaths and injuries of $29,623 per bald or golden eagle. ESI also must over the next 36 months apply for permits for any unavoidable take of eagles at each of 50 of its facilities where take is documented or, in the case of four facilities not yet operational, predicted.

“The Justice Department will enforce the nation’s wildlife laws to promote Congress’s purposes, including ensuring sustainable populations of bald and golden eagles, and to promote fair competition for companies that comply,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “For more than a decade, ESI has violated those laws, taking eagles without obtaining or even seeking the necessary permit. We are pleased to see ESI now commit to seeking such permits and ultimately ceasing such violations.”

“Wyoming is graced with abundant natural resources – including both eagles and strong winds,” said U.S. Attorney L. Robert Murray for the District of Wyoming. “The sentencing today shows our commitment to both maintaining and making sustainable use of our resources. It also ensures a level playing field for business in Wyoming and ensures those receiving federal tax credits are complying with federal law.”

“The U.S. Fish and Wildlife Service (USFWS) has a long history of working closely with the wind power industry to identify best practices in avoiding and minimizing the impacts of land-based wind energy facilities on wildlife, including eagles,” said Edward Grace, Assistant Director of the USFWS’ Office of Law Enforcement. “This agreement holds ESI and its affiliates accountable for years of unwillingness to work cooperatively with the Service and their blatant disregard of wildlife laws, and finally marks a path forward for the benefit of eagles and other wildlife resources entrusted to the Service’s stewardship.”

“This prosecution and the restitution it secures will protect the ecologically vital and majestic natural resources of our bald eagle and golden eagle populations,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “California has been awarded more than $4.6 million in restitution under this plea agreement for the deaths of at least 92 eagles within the state caused by the defendant and affiliated companies.”

The MBTA prohibits the “taking” of migratory birds, including bald and golden eagles, without a permit from the U.S. Fish and Wildlife Service of the Department of the Interior. “Take” is defined by regulation to mean “to pursue, hunt, shoot, wound, kill, trap, capture or collect” or to attempt to do so.

Bald and golden eagles are also protected under the Bald and Golden Eagle Protection Act (the Eagle Act) which, like the MBTA, prohibits killing and wounding eagles without a permit from USFWS. USFWS is authorized to issue such eagle take permits (ETPs) only where: (1) the predicted take is compatible with the preservation of bald and golden eagles; (2) it is necessary to protect an interest in a particular locality; (3) the take is associated with, but not the purpose of, the activity; and (4) the take could not practicably be avoided. Permit applicants are required to avoid and minimize take to the maximum extent practicable, and to pay compensatory mitigation for unavoidable takes.

According to documents filed in court, it is the government’s position that ESI’s conduct violated both the Eagle Act and the MBTA, but the government accepted the company’s guilty plea to only MBTA counts due in large part to ESI’s agreement to apply for permits at 50 facilities and its prior efforts to minimize and mitigate for eagle fatalities.

ESI’s and its affiliated companies’ actions in Wyoming and New Mexico were taken under an admitted nationwide posture and alleged corporate policy of not applying for ETPs.

According to the information filed in this case:

• ESI and its affiliates deliberately elected not to apply for or obtain any ETP intended to ensure the preservation of bald and golden eagles, and instead chose to construct and operate facilities it knew would take eagles, and in fact took eagles, without any permits authorizing that take.
• Because ESI did not seek any ETPs, it avoided any immediate federal obligation to avoid and minimize eagle take to the maximum degree practicable and to pay for compensatory mitigation for the eagle deaths.
• Because some other wind energy companies (1) altered proposed operations as required to avoid and minimize take levels to the maximum degree practicable, (2) applied for ETPs, (3) obtained ETPs that in some cases were impacted by take levels caused by ESI’s unpermitted facilities, and/or (4) paid mitigation for eagle takings, ESI, by not doing these things, gained a competitive advantage relative to those wind energy companies.
• ESI and its affiliates began commercial operations at new facilities on a schedule intended to meet, among other things, power purchase agreement commitments and qualifying deadlines for particular tax credit rates for renewable energy, and with production amounts not impacted by avoidance and minimization measures that might have been required under an eagle take permit. ESI and its affiliates received hundreds of millions of dollars in federal tax credits for generating electricity from wind power at facilities that it operated, knowing that multiple eagles would be killed and wounded without legal authorization, and without, in most instances, paying restitution or compensatory mitigation.

 

According to documents filed in court, between 2018 and 2019, ESI authorized subsidiary Cedar Springs Transmission LLC (CST) to develop a multi-facility commercial wind power project in Converse County, Wyoming, consisting of the Cedar Springs I, II and III wind power facilities (collectively, the project).

On March 28, 2019, USFWS informed the defendant, through a letter to its agents, that Cedar Springs I and II, based on CST’s consultant’s calculations, could result in the collision mortality of 44 golden eagles and 23 bald eagles over the first five years of operations, and recommended that, because of the unusually high number of occupied golden eagle nests, the proposed wind facilities not be built. USFWS further stated that, if the facilities were built, the company should apply for an ETP under the Eagle Act as soon as possible. The defendant continued the development of the Cedar Springs facilities.

On July 17, 2019, representatives of CST met with USFWS representatives. During that meeting, USFWS recommended that, consistent with the recommendation made by USFWS in February, the wind project not be constructed due to the risk of avian fatalities. USFWS also recommended that, if the wind project was built, the project should implement seasonal curtailment during daylight hours. The defendant did not implement the recommended curtailment.

Between Sept. 10 and Sept. 23, 2019, USFWS sent additional letters to the defendant’s agents, each noting that the defendant’s parent company had documented that the project was anticipated to kill eagles and recommending that the facilities apply for an ETP. USFWS reiterated for the third time its recommendation that a wind project should not be constructed in the proposed area for the Cedar Springs project.

On or about Sept 28, 2020, the defendant’s affiliates began some turbine operations at Cedar Springs II. Between approximately Nov. 29, 2020, and Dec. 1, 2020, two golden eagle carcasses were found near wind turbines at Cedar Springs II (after which it was sold).

On or about Dec. 6, 2020, the defendant authorized the commercial operation of Cedar Springs I to commence. Between April 2021 and January 2022, seven golden eagle carcasses were found near wind turbines at Cedar Springs I.

On or about Dec. 15, 2020, the defendant authorized the commercial operation of Cedar Springs III to commence. On approximately Jan. 30, 2022, a golden eagle carcass was found near a wind turbine at Cedar Springs III.

Between 2018 and 2019, ESI authorized a subsidiary, Roundhouse Renewable Energy LLC (RRE), to develop a commercial wind power facility in Laramie County, Wyoming.

In a letter dated March 28, 2019, USFWS stated that, based on RRE’s consultant’s calculations, Roundhouse could result in the collision mortality of 19 golden eagles and 4 bald eagles over the first five years of operation, and recommended that RRE apply for an ETP under the Eagle Act. The defendant continued the development of Roundhouse.

In a letter dated Aug. 27, 2019, USFWS provided recommendations on opportunities to avoid and minimize impacts to eagles using the available data. USFWS again stated that the facility was predicted to take eagles even if all USFWS recommendations were implemented, however, and recommended that an ETP be sought.

On June 12, 2020, the defendant authorized the commercial operation of Roundhouse to commence. Between approximately Sept. 17, 2020, and April 17, 2021, four golden eagle carcasses were found near wind turbines at Roundhouse.

In 2003, ESI authorized a subsidiary, FPL Energy New Mexico Wind LLC (NMW), to begin operations at a commercial wind power facility in De Baca and Quay Counties, New Mexico. On or about Dec. 29, 2020, two golden eagle carcasses were found near a wind turbine at NMW.

No ETP was sought by or issued to ESI in connection with the operations or repowering of any of the above wind power facilities.

This case was investigated by the U.S. Fish and Wildlife Service Office of Law Enforcement. The prosecutions were handled by the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division with assistance from the U.S. Attorneys’ Offices for the Eastern District of California, the District of Wyoming and the Northern District of California.

FRESNO, Calif. — U.S. Attorney Phillip A. Talbert and Homeland Security Investigations Special Agent in Charge Tatum King announced the results of an investigation into fentanyl-related overdoses in the Fresno area, which resulted in charges against of a total of 18 drug traffickers, charging them with trafficking fentanyl powder, fentanyl pills, cocaine, and methamphetamine.

“Many of the deaths and near deaths in drug overdoses are caused by counterfeit pills that look like prescription pills, but are not and actually contain fentanyl. The user may be unaware that the pills contain fentanyl and can be deadly,” said U.S. Attorney Talbert. “The charges announced today and the seizure of illicit drugs demonstrate our combined commitment to prevent the flow of these dangerous drugs into our communities.”

“Our agents work night and day to keep Fresno free from drugs like fentanyl that poison our children,” said Tatum King, special agent in charge, HSI San Francisco. “Today’s announcement of charges against 18 individuals involved in manufacturing and distributing this dangerous drug highlights HSI’s commitment our investigators have in partnership with prosecutors from the United States Attorney’s Office and local, state, and federal law enforcement to keep our community safe.”

The defendants are:

Horacio Torrecillas Urias Jr., of Fresno;

Amadeo Sarabia Jr., of Fresno;

Justin Dwayne Riddle, of Las Cruces, New Mexico;

Alma Garza, of Fresno;

Juan Valencia Jr., of Fresno;

Abel Lozano, of Sanger;

Henry Cox, of Sanger;

Alejandro Guzman, of Fresno;

Erica Ramirez, of Fresno;

Brayan Cruz, of Fresno;

Jacob Valles, of Fresno;

Cody Fyfe, of Fresno;

Christian Harris-Blanchette, of Fresno;

Marvin Carreno, of Fresno;

Victor Yair Torrecillas-Urias, of Fresno;

Oscar Jaramillo-Cortez, of Fresno;

Alex Garcia, of Fresno; and

Agustin Hernandez.

 

According to court documents, the investigation began after a series of fentanyl-pill overdoses in the Fresno area. These overdoses were caused by counterfeit oxycodone M30 tablets containing fentanyl, referred to on the street as M30s. Similar to authentic oxycodone M30 tablets, they are small, round, and light blue or green in color with “M” stamped on one side and “30” on the other. The investigation, dubbed “Operation Killer High,” aimed to search for the drug dealers believed to have supplied the toxic pills that caused the recent spike in fentanyl-related overdoses. The operation uncovered a large drug-trafficking ring led by Horacio Torrecillas Urias Jr., the self-proclaimed “M30 king of Fresno.”

According to the criminal complaint, Torrecillas Urias Jr. was obtaining, directly from sources in Mexico, tens of thousands of counterfeit M30 fentanyl pills and large quantities of fentanyl powder, cocaine and methamphetamine. He and his co-defendants were then distributing these illicit narcotics to drug dealers inside and outside of California. During the investigation, federal, state, and local law enforcement agents conducted traffic stops, intercepted packages, and executed residential search warrants that resulted in the recovery of over 55,000 M30 fentanyl pills, 6 pounds of fentanyl powder, 10 pounds of methamphetamine, a pound of cocaine, 25 firearms, and hundreds of rounds of ammunition..

“It is DEA’s mission to keep American communities healthy and safe. Our work is more important than ever as every fentanyl seizure represents potential lives saved,” said DEA Special Agent in Charge Wade R. Shannon. “In collaboration with our law enforcement counterparts we will continue to hold accountable those organizations who are poisoning our community with these deadly drugs.”

Inspector in Charge Rafael Nuñez of the U.S. Postal Inspection Service, San Francisco Division said: “Protecting postal customers and employees from harmful material delivered in the mail is the highest priority of the United States Postal Inspection Service. Controlled substances are dangerous to anyone who receives them and to the postal workers who handle those parcels while doing their jobs. Postal Inspectors are proud to have a part in this team effort to shut down a drug distribution operation and bring those responsible to justice.”

 “The Fresno Police Department is proud to have participated in ‘Operation Killer High,’” said Fresno Police Chief Paco Balderrama. “Fentanyl is a true danger, not just to our community, not just to our state, but to our nation. It was fentanyl overdoses that led to the development of the Fentanyl Overdose Resolution Team (FORT) here in Fresno. Last year alone, they responded to 84 overdoses, with 34 of them resulting in death. ‘Operation Killer High’ has culminated in 19 drug trafficking suspects being charged with federal offenses. These suspects, one of whom touts himself as the ‘M30 king of Fresno,’ are responsible for spreading fentanyl and other drugs throughout our city. We are happy to be standing side by side with our federal, state and local law enforcement partners as we hold these criminals accountable for their actions.”

The case was the result of an investigation by the Fentanyl Overdose Response Team (FORT) (a multi-agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department) the U.S. Postal Inspection Service, the Clovis Police Department, the Fresno County Sheriff’s Office, and the Fresno County District Attorney’s Office. The Bakersfield Police Department and the California Highway Patrol assisted in the case. Assistant U.S. Attorneys Justin J. Gilio and Laurel J. Montoya are prosecuting the case.

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

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.

If convicted, the defendants each face a statutory penalty range a minimum of 10 years and a maximum of life in prison and fines up to $1 million to $10 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Jose Manuel Chavez Zepeda, 54, of Carmichael, and Denis Zacarias Ponce Castillo, 37, of Sacramento, charging them with conspiracy to distribute cocaine and distribution of cocaine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, from at least April 22, 2016, until March 2022, Chavez distributed cocaine in kilogram quantities that he obtained from a source of supply in Mexico connected to the Cartel Jalisco Nuevo Generación (CJNG). Ponce worked for Chavez as one of his larger sub-dealers and later as his “stash pad” manager. In June, 2021, Chavez and Ponce sold a half kilogram of cocaine to a confidential source in Sacramento.

This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, Homeland Security Investigations, and the Sacramento Area Intelligence/Narcotics Task Force (SAINT). Assistant U.S. Attorney David Spencer is prosecuting the case.

If convicted, Chavez and Ponce face a maximum statutory penalty 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 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. — Gabriel Arauza, 33, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to 17 and a half years in prison for possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Arauza was arrested on Aug. 29, 2018, after law enforcement officers found 30.5 pounds of methamphetamine at his residence in Sacramento. Arauza has previously been convicted on four separate occasions for felony drug offenses, including California state drug trafficking convictions in 2013 and 2015.

This case was the product of an investigation by the Sacramento County Sheriff’s Department and the Federal Bureau of Investigation. Assistant U.S. Attorneys Justin Lee and Aaron Pennekamp prosecuted 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.

FRESNO, Calif. — A federal grand jury returned a single-count indictment today against Joel Jose Rueda, 29, of Fresno, charging him with escaping from federal custody, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Rueda was convicted in federal court on April 2, 2021 of being a felon in possession of a firearm. In December 2021, he was transferred from the federal penitentiary in Mendota to the Turning Point Residential Reentry Center, a halfway house in Fresno, to complete the remainder of his prison sentence. On Jan. 18, 2022, he escaped from the halfway house. He was later arrested by law enforcement officers during a traffic stop on March 11, 2022, when he attempted to flee. He later admitted to resisting arrest charges in Fresno County Superior Court and was sentenced to 7 days, with credit for time served. He has been ordered detained on the escape charge and is next scheduled to appear in federal court for arraignment on the indictment on April 4, 2022.

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.

If convicted, Rueda 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. — Darrel Wayne Kratzberg, 46, of Susanville, was sentenced on Monday to 10 years and 10 months in prison for distribution of methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, federal and local law enforcement officers began an investigation into Kratzberg’s distribution of methamphetamine in and around Susanville, in February 2018. The investigation was part of a larger effort between local and federal law enforcement agencies to identify sources of drugs, especially opioids, within Lassen County. Over the course of two months, agents conducted five controlled buys of methamphetamine and one controlled buy of heroin from Kratzberg.

This case was the product of an investigation by the Federal Bureau of Investigation, the Susanville Police Department, the Lassen County Sheriff’s Department, the California Department of Corrections & Rehabilitation-High Desert State Prison, and the Lassen County District Attorney’s office. Assistant U.S. Attorney James Conolly 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.

SACRAMENTO, Calif. — Terence Aubrey Larker, 35, of Las Vegas, previously of Sacramento, was arrested today after a federal grand jury returned an eight-count indictment last Thursday, charging him with mail fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

The indictment was unsealed today after Larker’s arrest in Las Vegas.

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

“We greatly appreciate the strong work of our federal law enforcement partners who investigate these complex cases and bring perpetrators to justice,” said EDD Director Nancy Farias.

This case is the product of an investigation by the Department of Labor-Office of Inspector General (DOL-OIG), California Employment Development Department, Department of Homeland Security-Office of Inspector General (DHS-OIG), and the Federal Bureau of Investigation. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.

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

FRESNO, Calif. — Jonathon Cortez, 24, of Fresno, was sentenced today to five years in prison for conspiring to distribute hundreds of fentanyl pills, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in August 2020, federal and local law enforcement officers with the Fentanyl Overdose Resolution Team were investigating Cortez’s associate for dealing fentanyl pills. On Aug. 24, 2020, officers searched that associate’s car, person, and residence and found hundreds of fentanyl pills made to look like oxycodone pills with an “M” stamped on one side and a “30” on the other. Further investigation revealed that Cortez had been supplying those fentanyl pills. On Dec. 14, 2021, Cortez pleaded guilty to conspiracy to distribute over 40 grams of fentanyl.

This case was the product of an investigation by the Fentanyl Overdose Resolution Team, 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 prosecuted the case.

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

FRESNO, Calif. — Raymond Matthew Vance, 30, of Turlock and Fresno, was sentenced Monday by U.S. District Judge Dale A. Drozd to four years and six months in prison for being a felon in possession of a firearm and for violating the terms of his federal probation, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Feb. 4, 2020, Vance sold two firearms to an individual and two days later sold an additional firearm. Vance was previously convicted of being a felon in possession of a firearm in the Eastern District of California in 2019, and was serving a probationary sentence for that offense at the time that he possessed the firearms.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Turlock Police Department, the Modesto Police Department, the Tracy Police Department, the Stanislaus County Sheriff’s Office, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorney Katherine E. Schuh is prosecuting 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. — Randal Jason Newell, 42, of Bakersfield, was sentenced today to three years and three months in prison for possessing with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Dec. 5, 2020, Newell drove from Bakersfield to Mexico to obtain and smuggle narcotics from Mexico to Bakersfield, which he agreed to do for $7,000. On Dec. 7, 2020, Newell drove to the San Ysidro port of entry crossing from Mexico into the United States. Law enforcement officers inspected Newell’s vehicle at the border crossing and discovered approximately 98 packages containing approximately 111 pounds of methamphetamine concealed in the vehicle’s gas tank, the rear compartment wall, the driver- and passenger-side exterior frame pillars, and underneath the floor.

On April 8, 2021, Newell and eight other defendants were charged in three related indictments for trafficking and purchasing to sell methamphetamine from a conspiracy orchestrated by Omar Alberto Navarro, 38, of Arvin. The other defendants are: Daniel Armendariz Mercado, 42; David Delgado Gonzalez, 38; Miguel Angel Martinez, 27; Amayrani Jared Arreguin, 25; and Yvette Gallegos, 23, all of Bakersfield; Lizette Mendez, 32, of Delano; and James Scott Gordon, 47, of Chico. 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 Homeland Security Investigations, the Drug Enforcement Administration, the U.S. Marshals Service, the U.S. Postal Inspection Service, Customs and Border Protection, the Bureau of Alcohol, Firearms, Tobacco and Explosives, the Federal Bureau of Investigation, the U.S. Secret Service, the Bakersfield Police Department, the Kern County Sheriff’s Office, the Shafter Police Department, the Kern County Probation Department, the California Department of Corrections and Rehabilitation, the California Department of Motor Vehicles, and the California Highway Patrol. Assistant U.S. Attorneys Christopher D. Baker and Laura J. Berger 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. — Desiree Brianna Bello aka Desiree Sanchez, 28, of Contra Costa County, was sentenced today to four years and nine months 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, Bello and co-defendant Richard Beldon Waters III, 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. Bello used the identification and PII of the mail theft victims to obtain money and property from banks and businesses.

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

This case is 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 is prosecuting the case.

Waters pleaded guilty to similar charges in September 2021. He is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on May 23, 2022.

FRESNO, Calif. — Thomas Patrick Day, 41, of Modesto, pleaded guilty today to burglarizing a 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 breaker 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 is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Joseph Barton is prosecuting the case.

Day is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on June 21, 2022. If convicted, Day faces a maximum 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.

On March 18, 2022, a federal jury convicted Chi Meng Yang, 36, of Montague, of bribery of a public official, conspiracy to commit bribery, and manufacturing more than 100 marijuana plants, U.S. Attorney Phillip A. Talbert announced.

According to evidence presented at trial, the charges arose from a four-month effort by Yang and Gaosheng Laitinen, Yang’s sister and co-defendant, to bribe Sheriff Jon Lopey, the elected sheriff of Siskiyou County, not to enforce a county ordinance banning outdoor marijuana grows.

On May 17, 2017, Yang met with Sheriff Lopey and offered a million-dollar donation to the charity of the sheriff’s choice in exchange for the sheriff’s “friendship” and help with a lobbying effort to legalize medical marijuana in Missouri. Yang, a Siskiyou County resident, also purported to represent a group of local cannabis farmers. Yang’s exact intentions were unclear, but Sheriff Lopey suspected that the mention of “friendship” implied some kind of improper law enforcement assistance. Sheriff Lopey called the FBI.

The FBI recorded the next meeting between Sheriff Lopey and Yang. In that meeting, Yang clarified that the donation could be paid to the Sheriff’s Office, or it could go to the sheriff himself—as Yang put it—“privately.” Yang added that he was growing marijuana on 10 plots of land, owned by members of his family, despite a Siskiyou County ordinance banning all outdoor grows. He offered the sheriff $5,000 per parcel for “protection,” with another $5,000 per parcel as a contribution to the sheriff’s re-election campaign. He offered to collect the money himself and to pay the sheriff in cash or a cashier’s check. Either way, he wanted it to be “private, discreet … anonymous.” He also made clear that what he wanted was “no enforcement” on the properties or the two water trucks that he used to water the grows.

Yang brought his sister, Gaosheng Laitinen, to the next meeting. Yang and Laitinen confirmed they wanted protection for their family’s marijuana grows. They offered to pay $1,000 per property up front, with the remaining $4,000 in protection fees and $5,000 in re-election money to be paid after the harvest, to guarantee the properties would not get raided before they could realize their profit.

In total, Yang met with Sheriff Lopey seven times. Together, Yang and Laitinen provided the sheriff with a list of eight properties that they wanted the sheriff not to raid. They paid $8,000—in envelopes of cash—as the initial protection payment for each of the eight properties. They also gave the sheriff cash bonuses totaling $2,500. The FBI caught all of these transactions on video.

Over time, Yang asked for favors outside the original protection scheme. He told the sheriff he wanted to add more marijuana plants to each property and to add greenhouses, which would allow him to grow throughout the year. He asked the sheriff to send his deputies to serve other growers with violation notices to get them to join the protection racket. At one point, Yang told Sheriff Lopey about a rival grower’s operation and suggested the sheriff “go out there and take care of it.” Yang also asked if the sheriff could influence other law enforcement agencies for Yang’s benefit. For example, Yang asked the sheriff if he could prevent the California Highway Patrol from enforcing the law against his water trucks, and he also asked for the sheriff’s help concerning a family member’s DUI arrest.

Eventually, FBI agents arrested Yang at a final meeting in Sheriff Lopey’s office on Aug. 31, 2017. Once Yang was in custody, the FBI gave a signal to eight teams of state and federal agents poised to search the eight “protected” properties. In total, agents eradicated 1,168 plants that were found on these eight properties.

This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Bureau of Land Management, the Siskiyou Unified Major Investigations Team, the Shasta Interagency Narcotics Task Force, the North State Marijuana Investigation Team, and the Siskiyou County Sheriff’s Office. Assistant U.S. Attorneys James Conolly and Aaron Pennekamp are prosecuting the case. Assistant U.S. Attorneys Michael Beckwith, Kevin Khasigian, and Ross Pearson assisted in the prosecution.

A week before the trial was to begin, Gaosheng Laitinen pleaded guilty to conspiring to commit bribery and conspiracy to manufacture marijuana. She is scheduled to be sentenced on Aug. 23, 2022.

Yang is scheduled to be sentenced by U.S. District Judge John A. Mendez on June 28, 2022. Yang faces a maximum sentence of five years in prison and a $250,000 fine for conspiracy to commit bribery, up to 10 years in prison and a $250,000 fine for bribery of a public official, and a mandatory minimum sentence of five years and up to 40 years in prison and a $5 million fine for manufacturing more than 100 marijuana plants. 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.

A federal grand jury indicted five individuals today charging them with a conspiracy to bring firearms from Georgia to California in order to sell them on the black market, U.S. Attorney Phillip A. Talbert announced.

On March 11, 2022, the five defendants were arrested. They are Jerrell Lawson, 31, of Sacramento; Aisha Hoggatt, 29, of Sacramento; Malek Williams, 28, of Atlanta, Georgia; Terrence Phillips, 39, of Union City; and James Gordley, 32, of Modesto.

All five defendants are charged with conspiracy to unlawfully deal in firearms and unlawful dealing in firearms for their part in this firearms trafficking scheme. Lawson, Hoggatt, Williams and Phillips are also charged with transferring a firearm to an out-of-state resident, and unlawful mailing of a firearm. Lawson is also charged with being a felon in possession of a firearm.

According to the criminal complaint, between November 2019 and October 2021, Lawson and his co-conspirators purchased over 500 firearms for more than $162,000. Lawson would broker firearms transactions in Georgia over the internet, and Williams, a Georgia resident with a license to carry a concealed firearm, would pick up firearms in person and mail the firearms to various locations in California at Lawson’s direction. Some of the firearms went to individuals that are prohibited from possessing firearms due to prior felony convictions. Hoggatt worked with Lawson to coordinate the purchase, mailing, and distribution of the firearms. Phillips and Gordley also distributed the firearms in California.

The investigation began when a firearm used in a shooting in Sacramento was traced to the last known sale by a federally licensed dealer in Georgia. A subsequent sale of the firearm led to Lawson’s organization. Lawson and his co-conspirators used coded language to traffic firearms and moved money using a variety of financial institutions. During the investigation, interdicted packages destined for Lawson and other co-conspirators were found to contain firearms, ammunition, knives, and brass knuckles, among other things.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Postal Inspection Service, and the Sacramento Region/ San Francisco Bay Area Cross-Jurisdictional Firearms Trafficking Strike Force Initiative. Assistant U.S. Attorneys Ross Pearson, Justin Lee, and Alexis Klein are prosecuting the case.

If convicted, the defendants face the following maximum penalties: five years in prison on each count for conspiracy to unlawfully deal in firearms, unlawful dealing in firearms and transferring a firearm to an out-of-state resident, and two years in prison on each count for unlawful mailing of a firearm. Lawson faces an additional maximum penalty of 10 years in prison for being a felon in possession of a firearm. 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.

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.

Tariq Arrhamann Majid, 43, of Vallejo, pleaded guilty today to two counts of sexual exploitation of children, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Dec. 31, 2018, Majid was arrested following an investigation involving online sharing of child pornography. Investigators discovered images and videos of Majid sexually abusing two minors, one of whom was 9 years old at the time of the offense. During the investigation, it was discovered that Majid had contact with many other minors, some of whom reported that Majid would invite minors to spend the night at his home.

This case is the product of an investigation by the California Highway Patrol Computer Crimes Investigation Unit and the Golden Gate Special Investigations Unit and the Federal Bureau of Investigation. Assistant U.S. Attorney Michele Beckwith is prosecuting the case.

Majid is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on June 27, 2022. Majid faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

Two Los Angeles-area residents pleaded guilty today to operating an illegal gambling business and conspiring to launder money, U.S. Attorney Phillip A. Talbert announced.

Pleading guilty today were Yosef Yitzchak Beshari, 29, of North Hollywood, and Efraim Journo, 30, of Los Angeles, in related cases.

According to court documents, Beshari and Journo conducted an illegal gambling business involving video slot machines and devices and the sale of credits for online gambling, in Stanislaus County, San Joaquin County, Sacramento County and elsewhere. In addition, Beshari conspired with Schneur Zalman Getzel Rosenfeld, 33, of Los Angeles, who has been charged in a related case, to launder the proceeds of the illegal gambling business by exchanging the cash proceeds for various payments, including checks, direct deposits of purported salary, and a wire transfer to an escrow company for the purchase of Beshari’s house.

In a related case, an indictment charges Los Angeles residents Gal Yifrach, 35, with operating an illegal gambling business and conspiracy to commit money laundering; Nick Shkolnik, 39, with operating an illegal gambling business; and Shalom Ifrah, 32, and Rosenfeld with conspiracy to commit money laundering.

According to court documents, Yifrach and Shkolnik also conducted the illegal gambling business. Yifrach and Ifrah conspired to launder the proceeds of the illegal gambling business in multiple ways, including by exchanging the cash for checks, exchanging the cash for casino chips, and conducting cash exchanges of no more than $10,000 at banks to avoid transaction reporting requirements.

This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorney Miriam R. Hinman is prosecuting the case.

Beshari and Journo are scheduled to be sentenced by U.S. District Judge William B. Shubb on June 27, 2022. They each face a maximum statutory penalty of five years in prison and a $250,000 fine for conducting an illegal gambling business. In addition, Beshari faces a maximum statutory penalty of 20 years in prison and a $500,000 fine, or twice the value of the monetary instrument or funds involved, whichever is greater, for conspiracy to commit money laundering. Beshari has also agreed to forfeit $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.

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

Ryan Kent Wheeler, 39, of Citrus Heights, was sentenced today by U.S. District Judge Kimberly J. Mueller to 20 years in prison to be followed by 15 years of supervised release and a $35,000 order of restitution for sexual exploitation of a child, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between November 2019 and February 2020, Wheeler set up hidden cameras in a house he shared with the victim to capture nude images of the victim. Wheeler made screen captured still images from video files and sent those still images into a Kik chat group. Agents obtained a search warrant, and recovered the hidden cameras, digital media that stored the files, and other devices.

This case was the product of an investigation by Homeland Security Investigations and the Placer County District Attorney’s Office. Assistant U.S. Attorney Roger Yang prosecuted the case.

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

John Perry, 64, of Bakersfield, pleaded guilty today to receipt of material involving the sexual exploitation of minors, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in February 2020, Perry received child pornography onto a cellphone. He has a previous conviction for rape of a child in the first degree in Washington state.

This case is the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorneys Laura D. Withers and Brian W. Enos are prosecuting the case.

Perry is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on June 27, 2022. Perry faces a minimum statutory penalty of 15 years in prison and a maximum statutory penalty of 40 years in prison and a $$250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

Wilfredo Medina-Perez, 34, a native and citizen of Sinaloa, Mexico, residing in Bakersfield, was sentenced today to 10 years and five months in prison for distributing methamphetamine and fentanyl, U.S. Attorney Phillip A. Talbert announced.

According to court documents, from December 2018 to November 2019, Medina distributed approximately one pound of 100% pure methamphetamine and 8,078 counterfeit oxycodone pills containing fentanyl to an undercover agent. Medina was arrested on a federal criminal complaint filed on Nov. 22, 2019, and has remained in custody as a flight risk and danger to the community since that time. Medina pleaded guilty in December 2021.

Last week, one of Medina’s runners, Uriel Ivan Portillo, 35, also a native and citizen of Mexico, was sentenced to three years and four months in prison for distributing fentanyl. One of Medina’s customers, Rojelio Garcia, 49, of Bakersfield, was sentenced to time served for possessing fentanyl with the intent to distribute and placed on supervised release for three years.

This case was the product of an investigation by the Drug Enforcement Administration, the Southern Tri-County High Intensity Drug Trafficking Area Task Force, the Kern County Sheriff’s Department, and the Bakersfield Police Department. Assistant United States Attorneys Karen Escobar and Angela Scott prosecuted the case.

This effort was 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.

Adrian Rodriguez Cardenas, 21, of Bakersfield, pleaded guilty today to conspiracy to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced.

On Feb. 4, 2022, co-defendant Keisean Rockmore, 27, of Bakersfield, pleaded guilty to possession with the intent to distribute fentanyl.

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, Rockmore drove Cardenas and a third individual 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. During the meeting, when the undercover officer asked the vehicle occupants whether they had the pills, Rockmore motioned towards a bag on his lap and stated that he had it. At least one of the vehicle occupants possessed a firearm during the meeting, which he pointed at the undercover officer when a dispute arose during the transaction. Rockmore then fled in his vehicle with Cardenas and the third person 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 person at the apartment complex, they discovered nearby a loaded firearm and more than 50 counterfeit OxyContin/oxycodone pills.

This case is 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.

Cardenas is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on June 17, 2022. Cardenas faces a mandatory five-year term in prison and a maximum term 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.

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.