Eastern District of California

SACRAMENTO, Calif. — A federal grand jury returned a 13-count indictment today against Robert Kirby Wells, 62, of Woodland, charging him with 10 counts of wire fraud and three counts of aggravated identity theft, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Wells served as an insurance broker for a company located in Denver, Colorado, that owned multifamily and commercial properties throughout the United States. As the company’s broker, Wells was responsible for obtaining several types of insurance coverage for the company’s properties, including umbrella liability coverage. As part of his fraudulent scheme, Wells represented to the company that he obtained umbrella coverage for properties when, in fact, he did not. Although Wells did not obtain the coverage, he invoiced and was paid for purported premiums associated with adding the properties to umbrella liability policies.

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

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

If convicted, Wells faces maximum statutory penalties of 20 years in prison for each wire fraud count and a mandatory term of two years in prison for each aggravated identity theft count. He also faces a fine of up to $250,000 or twice the gross gain or loss for each charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned a six-count superseding indictment today adding Josue Morales, 23, to an April 29, 2021, indictment, that charged Madera residents Emilio Hernandez Yesca, 27, and Jorge Perez, 24, with trafficking fentanyl and methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, the charges arose out of a months-long investigation into a drug trafficking organization. Between October 2020 and March 2021, the three conspired to distribute pounds of methamphetamine and thousands of fentanyl pills. These fentanyl pills are clandestinely manufactured pills that are made to resemble pharmaceutical oxycodone pills, but instead contain fentanyl, a synthetic opioid that is 100 times stronger than morphine. Morales is alleged to have supplied thousands of fentanyl pills and several pounds of methamphetamine to Hernandez and Perez on two occasions. Hernandez and Perez are alleged to have then distributed some of those narcotics and possessed the remainder with intent to distribute them.

Associates of the trafficking ring, Madera residents Eli Quiroz Hernandez, 26, and Jorge Luis Hernandez Gonzalez, 30, were indicted in related cases in April 2021.

This case is the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, the Madera County Sheriff’s Office, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Chowchilla Police Department, the Madera Police Department, and the Madera Narcotics Enforcement Team. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.

If convicted of the charged offenses, Hernandez, Perez, and Morales each face a statutory mandatory minimum penalty of 10 years in prison up to a maximum of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the 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 part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.

FRESNO, Calif. – A federal grand jury has returned a three-count indictment against Andrew Michael Alonso, 31, of Fresno, charging him with sexual exploitation of a minor, receipt of a visual depiction of a minor engaged in sexually explicit conduct, and committing a felony offense involving a minor while being a registered sex offender, Acting U.S. Attorney Phillip A. Talbert announced today.

According to court documents, Alonso is a registered sex offender who was on California parole supervision with GPS location monitoring. He contacted a 13-year-old victim on Instagram and then communicated with the victim through text messages in May and June 2021. Alonso repeatedly asked the victim to create and send to him images of the minor victim engaged in sexually explicit conduct. Alonso received still and video images of the minor engaged in sexually explicit conduct. He has been ordered detained as a danger to the community and risk of flight.

This case is the product of an investigation by the Central California Internet Crimes Against Children Task Force, which includes the Fresno Police Department and the Fresno office of Homeland Security Investigations. Assistant U.S. Attorney David L. Gappa is prosecuting the case.

If convicted of sexual exploitation of a minor, Alonso faces a statutory penalty of 15 to 30 years in prison, a potential $250,000 fine, and a possible lifetime term of supervised release. If convicted of being a registered sex offender who is convicted for sexual exploitation of a minor, Alonso faces a mandatory 10-year consecutive sentence in prison. If convicted of receipt of a visual depiction of a minor engaged in sexually explicit conduct, Alonso faces five to 20 years in prison, a potential $250,000 fine, and a possible lifetime term of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

FRESNO, Calif. — A federal grand jury returned a nine-count indictment today against optometrist Carole Sachs, O.D., 76, of Delhi, charging her with health care fraud, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Sachs was an optometrist and practiced out of offices in Turlock and Modesto. Between November 2016 and February 2021, Sachs fraudulently billed Medicare for optometry services she did not provide. Sachs billed over $1 million and received over $700,000 in payments from Medicare from these false and fraudulent claims. The fraudulent claims included claims for performing ultrasounds and for placing amniotic membranes on patients’ eyes despite the fact that Sachs did not perform these procedures.

This case is the product of an investigation by the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorneys Vincente A. Tennerelli and Joseph D. Barton are prosecuting the case.

If convicted, Sachs 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.

SACRAMENTO, Calif. — On Thursday, Aug. 26, after a three–day trial, a federal jury found Eligio Nunez, 42, of Hayward, guilty of being a felon in possession of firearms, Acting U.S. Attorney Phillip A. Talbert announced.

According to evidence presented at trial, on Aug. 7, 2020, Nunez led police in a high-speed chase while driving a stolen Lexus. He ended the pursuit by abandoning the car in a grassy area off of Shelton Lane in Vacaville. After running from police, he was apprehended by officers in a dry creek bed. Just after he fled on foot, the car caught fire, which caused ammunition inside the car to explode. Later, an investigation found three handguns inside the burned car, which the jury found Nunez to have possessed. Nunez was prohibited from possessing firearms a result of his 10 felony convictions, which include assault with a deadly weapon, felon in possession of a firearm, evading a peace officer, and two drug trafficking offenses.

This case is the product of an investigation by the Federal Bureau of Investigation and the Vacaville Police Department. Assistant U.S. Attorneys Jason Hitt and Paul A. Hemesath are prosecuting the case.

Nunez is scheduled to be sentenced by U.S. District Judge William B. Shubb on Nov. 23, 2021. Nunez faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is 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. — Joshua Bilal George, 38, of San Diego, pleaded guilty today to conspiracy to defraud the United States and wire fraud, Acting U.S. Attorney Phillip A. Talbert announced.

This is the third and final defendant to plead guilty in this case involving a conspiracy and scheme to defraud the Social Security Administration (SSA). Co-defendants Eric Lemoyne Willis and Darron Dimitri Ross pleaded guilty to similar charges in June 2019 and February 2020, respectively.

According to court documents, George worked for the Federal Protective Service (FPS) in Sacramento between 2011 and 2015, and in San Diego thereafter where he was promoted to the position of Area Commander. Willis worked as an SSA Operations Supervisor in Sacramento and Lodi from at least 2015 until his departure in January 2018. George met Willis through his work at FPS in Sacramento and knew Ross from his childhood in North Carolina.

Between January 2016 and October 2018, George, Willis, and Ross conspired to steal public money from the SSA. Willis used his authority as an SSA employee to access the confidential Social Security records of numerous beneficiaries. These records contained personally identifiable information (PII) including names, addresses, social security numbers, dates of birth, account numbers, family information, and benefit payment amounts. Additionally, Willis sought out PII for beneficiaries who used direct deposit for payment of large benefits. He then transferred this information to Ross in North Carolina, who in turn transferred it to George.

Ross and George’s roles in these crimes included calling numerous SSA field offices across the country and using the stolen PII to impersonate the beneficiaries. The conspirators opened at least 70 online bank accounts under fraudulent identities to receive diverted SSA benefit payments. During these calls, Ross and George convinced some of the SSA representatives that they were the identity-theft victims and caused the representatives to change the direct deposit account numbers to the fraudulent account numbers. Before the fraud could be detected, the SSA deposited the benefit payments into the fraudulent accounts. The conspirators were then free to withdraw the funds at ATMs and spend the money using debit cards.

SSA has identified over 200 beneficiaries nationwide who were targeted by these crimes, and the total loss has exceeded $695,000. The defendants spent the proceeds of their crimes on trips to Las Vegas, luxury items such as Rolex watches, and other things.

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

George is scheduled to be sentenced by U.S. District Judge William B. Shubb on Nov. 15, 2021. Willis and Ross are scheduled to be sentenced on Dec. 6, 2021, and Jan. 31, 2022, respectively. George faces a maximum statutory penalty of 25 years in prison and a $500,000 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. — Marilyn Cook (also known as Marilyn Powell and Marilyn Sunset), 58, of Alcoa, Tennessee, was sentenced today to two years and five months in prison for filing false claims for unclaimed property held by the California State Controller’s Office Unclaimed Property Division, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, in August and September 2014, Cook, using the alias Marilyn Sunset, committed a scheme to defraud by filing false claims with the Division of Unclaimed Property for properties belonging to the United States Marshals and others. For each claim, Cook certified under penalty of perjury that she was entitled to claim the identified properties. Cook used a State of Tennessee Identification Card that she obtained in the name Marilyn Sunset to have certain claim forms notarized as required by the Unclaimed Property Division. Cook also submitted fictitious documents in support of her claim, including a letter on Department of Justice letterhead that falsely purported to have been signed by a former Assistant Attorney General, authorizing Sunset to collect properties on behalf of the U.S. Marshals. In all, Cook falsely claimed 128 properties totaling $398,537. The Unclaimed Property Division identified the claims as fraudulent and did not disperse any property to Cook.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Shelley D. Weger prosecuted the case.

SACRAMENTO, Calif. — Angel Jesus Sanchez-Manriquez, 22, of Stockton, pleaded guilty today to sex trafficking of a child, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, between October and December 2020, Sanchez-Manriquez posted approximately 70 advertisements on a prostitution website, each of which contained images of a 16-year-old victim and advertised the victim’s availability to perform commercial sex acts for sex buyers. Sanchez-Manriquez paid for motel rooms in and around the Stockton area for that purpose. Following execution of search warrants, law enforcement agents determined that Sanchez-Manriquez also used his cellphone to record images and videos of his victim engaged in sexual acts with adults such as himself.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Brian Fogerty and Sam Stefanki are prosecuting the case.

Sanchez-Manriquez is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Dec. 2, 2021. Sanchez-Manriquez faces a maximum statutory penalty of life in prison (with a mandatory minimum of 10 years in prison), a $250,000 fine, and a lifetime term of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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. — Alfred David Villasenor, 38, of Chico, was sentenced Wednesday to three years and one month in prison for being a prohibited person in possession of ammunition, Acting U.S. Attorney Phillip A. Talbert announced. Villasenor was also ordered to pay a $7,000 fine.

According to court documents, on Nov. 20, 2019, law enforcement officers conducted a welfare check at Villasenor’s residence. They located Villasenor hiding underneath a blanket on the floor of the master bedroom with a shouldered, loaded non-serialized AR-15 rifle on a bipod. Villasenor had been pointing this rifle at the door officers had used to enter the room. Officers seized approximately 900 rounds of ammunition of various sizes and additional firearms from the home. At that time, Villasenor was subject to a domestic violence restraining order that prohibited him from possessing firearms or ammunition.

“Villasenor aimed a loaded, chambered weapon at police officers who were responding to his house to conduct a welfare check for his own safety and that of his family,” said Acting U.S. Attorney Talbert. “Villasenor violated a domestic violence temporary restraining order by acquiring dangerous firearms and ammunition. Today’s sentence reflects the seriousness of his offense and will hopefully deter him from acquiring firearms or ammunition again.”

"This case highlights the concerns the FBI and our law enforcement partners have when entering a building to apprehend a person,” said Special Agent in Charge Sean Ragan of the FBI's Sacramento Field Office. “We are grateful that this welfare check did not result in the injury or loss of life of Villasenor or responding Chico Police Department officers. We also thank the department for bringing this case to our attention.”

This case was the product of an investigation by the Federal Bureau of Investigation, the Chico Police Department, the California Department of Parks and Recreation, and the Butte County District Attorney’s Office. Assistant U.S. Attorneys James R. Conolly and Adrian T. Kinsella 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. — A California couple pleaded guilty today to conspiracy to commit forced labor. According to court documents, Nery A. Martinez Vasquez, 53, and his wife Maura N. Martinez, 53, both of Shasta Lake, are naturalized United States citizens, originally from Guatemala. They owned and operated Latino’s, a restaurant, and Redding Carpet Cleaning & Janitorial Services, a cleaning company that serviced various businesses, including multiple car dealerships, in the Shasta Lake area.

In their plea agreement filed in federal court, the defendants admitted that if the matter proceeded to trial, the government would prove beyond a reasonable doubt that they convinced a Guatemalan relative and her two minor daughters to come to the United States in August 2016 by falsely promising them a better life. The defendants arranged for the victims to enter the United States using temporary visitor visas and then compelled them to overstay their visas and work long hours at Latino’s restaurant and Redding Carpet Cleaning & Janitorial Services for minimal to no pay between September 2016 and February 2018. The defendants conspired with one another to manufacture an inflated debt that they told the victims they owed and instructed them that they could not leave until they repaid this fictious debt. The defendants also abused the legal system by threatening to call the authorities on the victims and have them arrested for overstaying their visas if they did not comply with their requests.

Similarly, the defendants forbade the minor children from attending school because they claimed that immigration authorities were looking to arrest and deport non-citizen children. Instead of attending school, the children worked for the defendants’ businesses. The defendants housed the victims in a dilapidated, unheated trailer with no running water, and degraded and humiliated them in front of others. Finally, the defendants used force and threats of force to intimidate the victims, with Nery Martinez Vasquez even going as far as hitting the minor victims with a stick when angry.

“These defendants used the promise of America to lure the victim and her children to the United States in search of a better life, only to turn around and use that hope to exploit their dreams under cruel conditions,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “There is no place for such cruel conduct in our society, and the Department of Justice remains committed to eradicating human trafficking.”

“These defendants exploited vulnerable victims, forcing them to work in their businesses, failing to pay wages, and depriving them of basic human rights,” said Acting U.S. Attorney Phillip A. Talbert. “The U.S. Attorney’s Office continues its commitment to protect and defend vulnerable members of our society from human trafficking.”

“This case highlights how the dream of coming to the United States to begin a new, promising life can become a nightmare,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The family worked in public view yet were imprisoned by fear and the lies they had been told by their exploiters. No human being — let alone a family — should be forced to work and live as these victims did. The FBI is committed to identifying and investigating human trafficking. We seek justice for victims, regardless of immigration status. We ask the public to report suspected human trafficking and encourage victims to come forward to escape the cycle of exploitation they may feel trapped within.”

The defendants are scheduled to be sentenced by U.S. District Judge William B. Shubb on Nov. 8, 2021. They face a maximum statutory penalty of 20 years in prison and a $250,000 fine. The sentence 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. As part of the defendants’ plea, they have agreed to pay $300,000 in restitution to the victims.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Katherine T. Lydon and Tanya B. Syed and Civil Rights Division Trial Attorney Avner Shapiro are prosecuting the case.

FRESNO, Calif. — Lester Eduardo Cardenas Flores, 24, of Michoacán, Mexico, pleaded guilty today to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, Acting U.S. Attorney Phillip A. Talbert announced. He also agreed to pay $48,057 in restitution to the U.S. Forest Service for the damage that the cultivation operation had on public land.

According to court documents, the cultivation operation contained 2,307 marijuana plants and was located in the Basin Creek drainage in the Dutch Oven Creek area of the Sierra National Forest. Cardenas and his co-defendant, Luis Madrigal Reyes, 37, also of Michoacán, Mexico, were apprehended at the grow site during the execution of a search warrant. 

The cultivation operation caused extensive environmental damage, which serves as the habitat for the Sierra Nevada yellow-legged frog, an endangered species and the California spotted owl. Agents found lethal banned pesticides, which appeared to have been applied to the marijuana plants. The water from Dutch Oven Creek had also been diverted to irrigate the marijuana plants. Dutch Oven Creek is part of the Chiquito Creek watershed, which drains into the Fresno River before flowing into the San Joaquin River.

This case is the product of an investigation by the U.S. Forest Service, California Department of Fish and Wildlife, the Campaign Against Marijuana Planting (CAMP) of the California Department of Justice, and the Madera County Sheriff’s Office. The Integral Ecology Research Center, a non-profit organization dedicated to the research and conservation of wildlife and their ecosystems, assisted. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

Cardenas is scheduled for sentencing on Nov. 15, 2021. Madrigal previously entered a guilty plea and is scheduled for sentencing on Sept. 20, 2021. They face a mandatory minimum statutory penalty of 10 years and a maximum penalty of life in prison, as well as a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Jose Reyes-Pineda, 48, of Anaheim, pleaded guilty today to conspiring to distribute methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Reyes and co-defendants Genaro Serrato-Calles, 51, and Antonio Valencia-Hernandez, 65, both of Modesto, and Antonio Castellanos, 38, of Whittier, were charged with conspiring over a two-year period to distribute drugs in Stanislaus and San Joaquin Counties. As part of the drug conspiracy, Reyes delivered over 11 pounds of methamphetamine to Valencia for distribution in Modesto.

Reyes is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Nov. 15, 2021. Castellanos, Serrato, and Valencia previously pleaded guilty. Castellanos is scheduled for sentencing on Oct. 18, 2021, and Serrato and Valencia are both scheduled for sentencing on Nov. 8, 2021. Each defendant faces a maximum statutory penalty of 20 years in prison and a fine up to $10 million. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; the Central Valley High Intensity Drug Trafficking Area (HIDTA) task force; the San Joaquin County Metropolitan Narcotics Task Force; the Stanislaus Drug Enforcement Agency; and the Orange County Sheriff’s Special Investigations Bureau. Assistant U.S. Attorneys Karen Escobar and Melanie Alsworth are prosecuting the case.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

SACRAMENTO, Calif. — A federal grand jury returned three indictments on Aug. 19, charging four individuals with drug and gun crimes committed in and around South Lake Tahoe, Acting U.S. Attorney Phillip A. Talbert announced

The indictment against Joshua Daniel Wilson, 34, of South Lake Tahoe, and Cody Lee Cramer, 39, of Lampasas, Texas, charges them together with one count of dealing firearms without a license. The indictment also Wilson with one count of distributing at least 500 grams of methamphetamine, four counts of distributing at least 50 grams of methamphetamine, and one count of dealing firearms without a license.

According to court documents, Wilson sold methamphetamine to an informant multiple times over the course of five months. During this course of dealing, Wilson also offered to sell the informant other drugs, including LSD and MDMA. During that same period, Wilson and Cramer sold the informant firearms, including an AR-15 style rifle, a shotgun, and several handguns. Some of the weapons had been manufactured without serial numbers. Such weapons are often referred to as “ghost guns,” and the lack of a serial number impairs the ability of law enforcement agencies to trace them.

The grand jury also returned a four-count indictment against Patricia Louise Ekizian, 69, of South Lake Tahoe, charging her with distribution of at least 50 grams of methamphetamine. According to court documents, Ekizian sold methamphetamine to an informant on multiple occasions over several months.

Finally, the grand jury returned a two-count indictment against Frank Ray Bacon, 53, of South Lake Tahoe, charging him with distribution of at least 50 grams of methamphetamine. According to court documents, Bacon sold methamphetamine to an informant on two occasions.

This case is the product of an investigation by the Federal Bureau of Investigation, South Lake Tahoe Police Department, El Dorado County Sheriff’s Office, El Dorado County District Attorney’s Office, Douglas County Sheriff’s Office, U.S. Postal Inspection Service, and U.S. Drug Enforcement Administration. During a coordinated law enforcement operation earlier this month, agents and officers executed arrest warrants in South Lake Tahoe, related to the illicit interstate drug and weapons trafficking that ultimately resulted in the three indictments. Assistant United States Attorney James Conolly is prosecuting the case.

If convicted, Wilson faces a 10-year mandatory minimum prison sentence, a maximum statutory penalty of life in prison, and a $10 million fine for the count of distributing at least 500 grams of methamphetamine. If convicted of distributing at least 50 grams of methamphetamine, Wilson faces a five-year mandatory minimum prison sentence , a maximum statutory penalty of 40 years in prison, and a fine of up to $5 million. If convicted of the charge of dealing firearms without a license, Wilson and Cramer each face a maximum of five years in prison and a fine of up to $250,000.

If convicted, Ekizian faces a five-year mandatory minimum prison sentence, a maximum statutory penalty of 40 years in prison, and a fine of up to $5 million.

If convicted, Bacon faces a maximum statutory penalty of 40 years in prison, and a fine of up to $5 million for each count. Each count also carries a mandatory minimum sentence of five years in prison.

Any sentence would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This 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.

FRESNO, Calif. — Patrick Maldonado, 45, of Madera, and Elias Zambrano Jr., 41, of Fresno, have been sentenced to eight years in prison and two years and three months in prison, respectively, for an interstate drug conspiracy involving shipments of marijuana to the Midwest, Acting U.S. Attorney Phillip A. Talbert announced.

Maldonado and Zambrano pleaded guilty earlier this year. According to court documents, in November 2018, Maldonado coordinated with Tan Minh Vo, 48, of San Jose, to send two shipments of marijuana to Halen Frazier, 34, of Kingsville, Missouri. The first shipment was seized from Frazier during a traffic stop after Tien Van Phan, 56, of Milpitas, delivered 92 pounds of marijuana to Frazier in two suitcases at a hotel in Kansas City.

Later, agents intercepted calls between Maldonado, Zambrano, and Frazier in which they discussed the shipment of 384 pounds of marijuana to Frazier in Kansas City. Maldonado and Zambrano had packed the load in a hidden compartment of a trailer of a truck driven by David McGowan, 61, of Kansas City. Arizona State Troopers discovered the marijuana and $1,629 in cash after a traffic stop.

Following the seizure of marijuana in Arizona, agents executed a search warrant at Maldonado’s and Zambrano’s residences. At Maldonado’s residence, agents found more than 3 kilograms of cocaine, 20 pounds of marijuana, a handgun, and $45,281 in cash. At Zambrano’s residence, agents found more marijuana, an electronic money counter, an unregistered pistol, and a so‑called “ghost gun.” U.S. District Judge Dale A. Drozd has ordered the forfeiture of the cash and firearms.

This case is the product of an investigation by the Central Valley High Intensity Drug Trafficking Area Task Force consisting of agents from the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the Tulare, Kings, and Fresno County Sheriff’s Offices, the Fresno Police Department, the Arizona Department of Health, and the Kansas City Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.

Phan and Frazier, who also pleaded guilty, were previously sentenced to three and one half years and two years and three months in prison, respectively. Charges are pending against McGowan and Vo, who are scheduled for a status conference on Nov. 10, 2021. As to these defendants, the charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Alejandro Lopez, 51, of Culiacán, Sinaloa, Mexico, was sentenced today to seven and a half years in prison for possessing methamphetamine with intent to distribute, Acting U.S. Attorney Phillip A. Talbert announced. 

According to court documents, Lopez was stopped for a traffic violation in Merced County as he was driving northbound on Highway 99. Following the stop, law enforcement officers discovered approximately 32 pounds of methamphetamine in a spare tire of the vehicle that Lopez had been driving. Lopez pleaded guilty on Oct. 6, 2020.

This case was the product of an investigation by Homeland Security Investigations and the California Highway Patrol. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.

FRESNO, Calif. — Eric Leslie, 38, of Park Ridge, Illinois, was sentenced today to 15 years in prison, to be followed by 17.5 years of supervised release, for his role in the advertising and distribution of child pornography through a website, Acting U.S. Attorney Phillip A. Talbert announced.

On Jan. 21, 2020, Leslie pleaded guilty to one count of conspiracy to advertise child pornography and one count of distribution of child pornography. As part of the sentence, U.S. District Judge Dale A. Drozd ordered Leslie to pay $3,000 in restitution to one victim.

According to court documents, from approximately October 2017 through December 2018, Leslie agreed with one or more persons to advertise child pornography and then also actually distributed to a website images of minors engaged in sexually explicit conduct. When law enforcement officers served a search warrant at his residence in Illinois in January 2019, they recovered more than 600 images of minors engaging in sexually explicit conduct some of which involved violence.

This case was the product of an investigation by Homeland Security Investigations (HSI) offices in Fresno, California, Chicago, Illinois, and The Hague, Netherlands. Assistant U.S. Attorney David L. Gappa prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who 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. — Simon Meza Jr., 38, of Fresno, was sentenced Friday, Aug. 20, 2021 by U.S. District Judge Dale A. Drozd to four years in prison for being a felon in possession of ammunition that was found in his loaded gun, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Aug. 19, 2020, in Fresno, police officers attempted to conduct a traffic stop on a vehicle driven by Meza. Meza did not yield, but instead, recklessly fled in his vehicle. Officers discontinued the pursuit, but later located Meza’s vehicle abandoned at a business on South Sarah Avenue. Officers located Meza hiding in a nearby park. Surveillance video from the business showed Meza discarding a bag containing a loaded firearm and a wallet with Meza’s California identification card inside. Meza has multiple prior convictions for illegal weapons and drug possession and is prohibited from possessing ammunition.

This case was the product of an investigation by Homeland Security Investigations, the Fresno Police Department, and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Katherine E. Schuh prosecuted the case.

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

FRESNO, Calif. — Eleno Fernandez-Garcia, 37, of Michoacán, Mexico, was sentenced today to 4 and a half years in prison for conspiring to manufacture, distribute, and possess with intent to distribute marijuana and ordered to pay $45,688 in restitution to the U.S. Forest Service for the environmental damage that the toxic chemicals and cultivation operation had on public land, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, the cultivation operation contained 9,654 marijuana plants and was located in the Basin Creek drainage in the Stanislaus National Forest in Tuolumne County. Fernandez was found at the grow site in possession of pruning shears and two cellphones, and was covered with marijuana debris. Three other individuals fled from the area, which is near recreational activities and Sugar Pine Springs, a natural spring used by two companies for bottled water.

The cultivation operation caused significant damage to the environment. Within the grow site, investigative agents found the pesticide Weevelcide, which contains aluminum phosphide, a lethal restricted use chemical; two types of rodenticides; 837 pounds of soluble fertilizer; 45.65 gallons of liquid fertilizer; and a dead raccoon. Nearly all of the native vegetation was cut down to make room for the marijuana plants. Besides chemicals and fertilizer, there was over 2,000 pounds of trash and irrigation tubing.

The grow site was in a grazing permit area where cows roamed freely and had access to the plants and chemicals. The Basin Creek complex also lies upstream of several species of conservation concern, including the Central Valley steelhead, federally threatened under the Endangered Species Act (ESA); chinook salmon, federally threatened under the ESA; and yellow-legged frog, a candidate for listing as threatened under both the federal and the California ESA.

This case was the product of an investigation by the U.S. Forest Service, California Department of Fish and Wildlife, the Campaign Against Marijuana Planting (CAMP) of the California Department of Justice, and the California Fish and Wildlife. Assistance was provided by the Integral Ecology Research Center, a non-profit organization dedicated to the research and conservation of wildlife and their ecosystems. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.

SACRAMENTO, Calif. — Deborah Shannell Hollimon, 44, of West Memphis, Arkansas, was sentenced today by U.S. District Judge Troy L. Nunley to three years and two months in prison and ordered to pay $569,168 in restitution for a California state unemployment insurance benefits fraud and identity theft scheme, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, from September 2012 through September 2015, Hollimon and others filed over 100 fraudulent unemployment insurance claims with the California Employment Development Department (EDD) seeking approximately $882,991 using fictitious businesses. Hollimon created fictitious employers with EDD and then submitted information to EDD reporting employees for the fictitious businesses. Almost all of the individuals reported as employees of the companies were actually victims of identity theft. Hollimon subsequently filed unemployment claims in her own name and in the names of the fake employees in order to collect the benefits. Approximately $569,168 in benefits were paid out by EDD.

“The funds set aside for unemployment insurance and disability insurance are intended to benefit Californians who have earned the right to receive those benefits,” said Acting U.S. Attorney Talbert. “Fraud schemes that damage and deplete the fund undermine the benefit system and cheat those whom the funds are intended to protect. We will continue to work with our law enforcement partners to investigate and stop fraud schemes like this that harm California workers.”

“Deborah Hollimon and her co-conspirators exploited our nation’s unemployment insurance system by filing at least 100 fraudulent unemployment insurance claims in the names of identity theft victims. Today's sentencing affirms the U.S. Department of Labor Office of Inspector General’s commitment to working with our federal and state law enforcement partners to investigate identity theft that adversely impacts the integrity of the UI program,” said Quentin Heiden, Special Agent-in-Charge, Los Angeles Region.

This case was the product of an investigation by the U.S. Department of Labor Office of Inspector General and the California Employment Development Department. Assistant U.S. Attorney Shea J. Kenny prosecuted the case.

SACRAMENTO, Calif. — Guy Joseph Bass, 29, of Vacaville, pleaded guilty today to being a felon in possession of ammunition, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, On Sept. 18, 2020, police officers arrested Bass on an outstanding arrest warrant. During the arrest, Bass admitted he had a firearm on his person. A search of his person uncovered a Glock style privately made firearm, also known as a “ghost gun,” loaded with an extended magazine containing 17 rounds. Bass cannot possess a firearm or ammunition because he was previously convicted of a felony offense.

Additionally, on Nov. 28, 2020, police officers approached a parked vehicle Bass was sitting in. A search of the vehicle led to the discovery of a different privately made .223 caliber AR-style pistol and a 30‑round magazine loaded with at least nine rounds of ammunition.

This case is the product of an investigation by the Vacaville Police Department, the Solano County District Attorney’s Office, the FBI’s Solano County Violent Crimes Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

U.S. District Judge John A. Mendez is scheduled to sentence Bass on Dec. 7, 2021. Bass 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. — After a seven-day trial, a jury found Dawniel Santangelo, 43, of Stockton, guilty today of conspiracy to engage in sex trafficking of a child, three counts of sex trafficking of a child, and one count of transporting a minor with intent to engage in criminal sexual activity, Acting U.S. Attorney Phillip A. Talbert announced.

According to evidence presented at trial, between September 2018 and May 2019, Santangelo recruited 15-, 16-, and 17-year-old girls to engage in prostitution throughout Northern California and Southern Oregon. Santangelo enticed the girls to perform sex acts for strangers by providing alcohol, drugs, and creating a party atmosphere in motels in Stockton and Salinas. She then posted online prostitution ads depicting the victims and brought sex buyers to the motels to have sex with the victims in exchange for money that she and co-defendant, Lucious James Roy, 34, of Stockton, took from the victims. Santangelo also took the 17-year-old victim to a Ripon truck stop to engage in prostitution. Ultimately, the minor victims had sex with sex buyers in the motel rooms where Santangelo harbored them and on the streets of the cities where Santangelo took them. After the victims began engaging in commercial sex acts, Santangelo urged them to continue, falsely reassuring the 17-year-old victim that the experience was not that bad and offering to give the 16-year-old victim feminine products to keep her engaging in sex acts when she was menstruating.

In early May 2019, Santangelo and co-defendant Roy, recruited a 15-year-old runaway from the Modesto area to engage in prostitution. They drove the victim from Merced to Medford, Oregon, Santangelo’s former hometown, in order to put the 15-year-old to work engaging in prostitution. Once in Oregon, Santangelo advertised the victim’s commercial sex acts on the internet and harbored her in a motel room that she rented. After a few days in Oregon, the victim called her family for help, and Oregon police subsequently found the victim in Santangelo’s motel room along with Santangelo and Roy.

This case is the product of an investigation by the Federal Bureau of Investigation, the Stockton Police Department, the San Joaquin District Attorney’s Office, the Medford (Oregon) Police Department, and the Jackson County (Oregon) District Attorney’s Office. Assistant U.S. Attorneys Cameron L. Desmond and Brian A. Fogerty are prosecuting the case.

On April 12, 2021, Roy was sentenced by U.S. District Judge Kimberly J. Mueller to 17 years and seven months in prison after pleading guilty to conspiracy to engage in sex trafficking of a child.

Santangelo is scheduled for sentencing by Judge Mueller on Nov. 8, 2021. Santangelo faces a maximum statutory penalty of life in prison and a $250,000 fine. Her convictions on the sex trafficking of a child and transportation of a minor with intent to engage in criminal sexual activity counts each carry a mandatory minimum sentence of 10 years in prison. 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. — Evan Palmer, 32, of Chico, was sentenced today by U.S. District Judge John A. Mendez to two years and three months in prison and ordered to pay $26,490 in restitution for defrauding FEMA by filing a false claim for benefits offered to certain survivors of the November 2018 Camp Fire, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, in order to obtain Federal Emergency Management Agency (FEMA) disaster benefits, Palmer falsely claimed a trailer located in Paradise, California was his primary residence at the time of the Camp Fire. In both his application for disaster benefits and his subsequent conversation with a FEMA inspector, Palmer claimed he and his family were living in the trailer at the time of the Camp Fire and that it was their primary residence when in fact Palmer and his family resided in a home in Chico. As a result of Palmer’s false statement, he received $26,490 in FEMA disaster benefits, which were intended to be used to repair or replace Palmer’s primary residence and to assist with two months of temporary rental housing. Palmer used this money for other purposes, including the purchase a vehicle.

Following the 2018 Camp Fire, FEMA disaster assistance funds were available to qualified individuals who had emergency needs for housing, food, and other necessities due to losses incurred by the fire. To qualify for assistance based on home ownership, an applicant must have resided in the damaged home as their primary residence at the time of the fire.

Palmer is one of eight individuals indicted in the Eastern District of California for making a false statement about their primary residence in an application for FEMA assistance in connection with the Camp Fire.

“In 2018, in the aftermath of the Camp Fire, we encouraged the public to report any suspected fraudulent activity and promised to aggressively pursue and prosecute fraud and abuse,” said Acting U.S. Attorney Talbert. “Today’s announcement is one example of our efforts to prosecute fraud to receive FEMA disaster benefits that should have gone to real victims of the devastating Camp Fire. We will continue to hold people accountable for fraudulent claims after a disaster to ensure that federal benefits go to those who truly need them.”

“Disasters bring out the best and worst in people, testing the strength of entire communities while providing temptation for criminals. Fraud schemes divert critical resources from disaster victims who are in desperate need and take advantage of communities that have already suffered significant losses,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The FBI is committed to working with our law enforcement partners to ensure those who commit disaster fraud face justice for taking advantage of aid provided to the residents and businesses devastated by disasters such as the Camp Fire.”

Department of Homeland Security Inspector General Joseph V. Cuffari said, “This investigation and today’s sentencing speaks to the strength of our law enforcement partnership with the Federal Bureau of Investigation to ensure fraudsters are held accountable and taxpayer funds are used for their intended purpose.”

This case was the product of an investigation by the Federal Bureau of Investigation and Department of Homeland Security Office of the Inspector General. Assistant U.S. Attorneys Shelley Weger and Roger Yang are prosecuting the case.

Members of the public who suspect fraud involving disaster relief efforts, including Camp Fire or COVID-19 relief efforts, or who believe they have been a victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. Alternatively, information can be submitted via the Center’s online Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

RESNO, Calif. — Two Bakersfield men were charged today by a federal grand jury in separate indictments with being felons in possession of firearms, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Duwayne Payton, 25, is a documented and active member of the East Side Crips criminal street gang in Bakersfield. On March 11, 2021, Payton possessed in his residence a stolen Glock Model 17 9 mm handgun. Payton may not lawfully possess firearms because of his prior felony convictions, including convictions in Bakersfield in 2014 for first degree burglary and vehicle theft.

According to the indictment in a separate case, on July 8, 2021, as Sabino Ramos, 45, was driving in Bakersfield, law enforcement officers attempted to stop him in order to serve an arrest warrant for probation violations. Ramos led officers on a high-speed chase, reaching speeds up to 90 mph, before losing control of his vehicle while exiting Highway 99 at Ming Avenue. Ramos then ran from pursuing officers but was eventually subdued. Ramos was found to be in possession of two handguns and approximately 30 rounds of ammunition. Ramos may not lawfully possess firearms because of his prior felony convictions, including convictions in 1995 for assault with firearm on a person and in 2017 for possessing controlled substances for sale.

These cases are the product of investigations 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 cases.

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

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

FRESNO, Calif. — A federal grand jury returned an eight-count indictment today against Wes Parker McDaniel, 52, of Merced, charging him with four counts of possessing unregistered destructive devices, manufacturing destructive devices, impersonating a federal agent, being a felon in possession of firearms and ammunition, and malicious destruction of property by means of an explosive, Acting U.S. Attorney Phillip A. Talbert announced.

According to the indictment, between Feb. 1, 2021, and June 22, 2021, McDaniel manufactured approximately 10 destructive devices, which were not registered to him in the National Firearms Registration and Transfer Record, and possessed those devices on four separate occasions in Merced and Kings Counties. On June 20, 2021, one of those devices is alleged to have caused damage to residential rental properties in Merced.

In addition, McDaniel unlawfully possessed a rifle and ammunition. As a convicted felon, he is prohibited from possessing firearms, including destructive devices, and ammunition.

The indictment also charges that on June, 20, 2021, McDaniel falsely represented himself to be a Special Agent of the National Security Agency for the purpose of arresting another person.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Merced Police Department, the Lemoore Police Department, and the Tulare County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar is prosecuting the case.

If convicted, McDaniel faces a mandatory minimum prison term of five years in prison and a maximum prison term of 20 years if convicted of malicious destruction of property by means of explosive materials. He faces a maximum statutory penalty of 10 years in prison for each count of possessing unregistered destructive devices, manufacturing destructive devices, and being a felon in possession of firearms and ammunition. He faces an additional three years in prison for the impersonation charge. Each of the charges also carries a maximum fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case 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 Aldo David Alcaraz, 27, of Long Beach, charging him with production and possession of child pornography, attempted coercion and enticement of a minor, and attempted transfer of obscene material to a minor, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, between December 2020 and January 2021, Alcaraz produced nine videos of himself engaged in sex acts with a minor victim in Tulare County. Alcaraz is also charged with possessing sexual images of minors, including minors under the age of 12 and another set of videos that Alcaraz produced of himself engaged in sex acts with a different minor victim. Finally, according to court documents, in January 2021, Alcaraz traveled to Kern County in an attempt to meet a minor to engage in sex acts, and he sent obscene images to that minor.

This case is the product of an investigation by Homeland Security Investigations and the Kern County Sheriff’s Office. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.

Anyone who has information related to this case or who believes that they or their child may be a victim can contact HSI at its tollfree tip line: 1-866-347-2323 or fill out the online tip form at https://www.ice.gov/webform/ice-tip-form.

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

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

FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Marc Davis, 48, of Fresno, charging him with being a felon in possession of ammunition, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, on March 21, 2021, Davis engaged in an argument with another man in Fresno. Davis had a loaded, unserialized AR-15 style rifle in his hand during the argument. Police found Davis a short time later, and found an AR-15 style rifle along a path Davis had walked. Davis has multiple prior felony convictions, including convictions for infliction of corporal injury on a spouse or cohabitant and second degree burglary.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorney Kimberly A. Sanchez is prosecuting the case.

If convicted, Davis 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. — Desiree Brianna Bello, 27, of Contra Costa County, pleaded guilty Monday to bank fraud and possession of stolen U.S. mail, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, between April and August 2020, Bello and co-defendant Richard Beldon Waters III, 29, 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 off the lot, which was valued at approximately $55,490.

Additionally, on two separate occasions in May 2020, Bello knowingly possessed stolen U.S. 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. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.

Bello is in federal custody and is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Oct. 25, 2021. Bello faces a maximum statutory penalty of 30 years in prison and a $1 million fine for bank fraud and five years in prison and a $250,000 fine for possession of stolen U.S. mail. 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 consider a number of variables.

Charges are pending against Waters. The charges against Waters are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Linda Expose, 56, of Salida, was sentenced today by U.S. District Judge Dale A. Drozd to two years in prison for aggravated identity theft, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, over the course of two decades Expose unlawfully received over $170,000 in Social Security benefit payments. Expose received those benefits under her own Social Security number while she also earned employment income under her sister’s Social Security number. Her scheme concealed her wages from the Social Security Administration. That unreported income would have rendered her ineligible for a significant portion of the Social Security benefits that she received. After years of collecting both sources of income, Expose then tried to file for Social Security benefits under her sister’s Social Security number. Expose pleaded guilty on Jan. 22, 2020.

“This sentence sends a clear message that individuals who attempt to cheat federally funded programs risk significant consequences,” said Acting U.S. Attorney Talbert. “These programs provide vital support to deserving members of our society, and our office will continue to protect them.”

“We will continue to pursue those who misuse the Social Security number of others. This individual abused Social Security disability benefits and stole Supplemental Security Income — money that is intended as a critical safety net for those in need,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I thank the U.S. Attorney’s Office for their efforts in prosecuting this case and holding this individual accountable.”

This case was the product of an investigation by the Social Security Administration Office of the Inspector General. Assistant U.S. Attorneys Justin J. Gilio and Henry Carbajal prosecuted the case.

FRESNO, Calif. — Modesto residents Genaro Serrato Calles, 49, and Antonio Valencia Hernandez, 65, pleaded guilty today to conspiring to distribute methamphetamine and heroin, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Serrato and Valencia, along with Antonio Castellanos, 38, of Whittier, and Jose Reyes Pineda, 48, of Anaheim, were charged with conspiring over a two-year period to distribute methamphetamine and heroin in Stanislaus and San Joaquin Counties. In pleading guilty, Serrato acknowledged that he supplied heroin to Valencia for distribution and also had Valencia pick up about 11 pounds of methamphetamine from Reyes in Anaheim for distribution in Modesto. Serrato also made arrangements with Castellanos to store and repackage for distribution about 20 pounds of methamphetamine at a stash house in Modesto.

This case is the product of an investigation by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; the Central Valley High Intensity Drug Trafficking Area (HIDTA) task force; the San Joaquin County Metropolitan Narcotics Task Force; the Stanislaus Drug Enforcement Agency; and the Orange County Sheriff’s Special Investigations Bureau. Assistant U.S. Attorneys Karen Escobar and Melanie Alsworth are prosecuting the case.

Serrato and Valencia are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Nov. 8, 2021. Castellanos previously entered a guilty plea to the drug conspiracy and is scheduled to be sentenced on Oct. 18, 2021. Serrato and Valencia face a maximum statutory penalty of life in prison, a statutory mandatory minimum prison term of 10 years, and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

FRESNO, Calif. — Ralph Hackett, 66, of Clovis, pleaded guilty today to aiding and abetting mail fraud and agreed to pay $650,000 in criminal restitution for helping another individual submit a fraudulent crop insurance claim for table grapes for the crop year 2013, Acting U.S. Attorney Phillip A. Talbert announced.

In a civil settlement with the United States, Hackett also agreed to pay another $605,000 to resolve allegations of crop insurance fraud for the crop years 2012 through 2015.

According to court documents, Hackett was a member and manager of a Central Valley fruit broker through which the other individual sold various crops, including table grapes, from the individual’s farming operation in Fresno and Tulare counties. At the other individual’s request, Hackett instructed one of his employees to provide altered records to the individual that underreported the amount of table grapes the individual sold through the fruit broker so the individual could submit a fraudulent crop insurance claim for the grapes for the crop year 2013. Hackett then instructed the same employee to falsely confirm the accuracy of the altered records when the insurance company called for verification.

Hackett further acknowledged that he helped the other individual submit additional fraudulent crop insurance claims for the crop years 2012 through 2015 and, all together, caused more than $650,000 in fraudulent insurance payments to be made to the individual’s farming operation. The insurance payments were federally backed by the Federal Crop Insurance Corporation (FCIC) and were made by checks sent through the mail. The civil settlement resolves claims that Hackett violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) during those years.

The False Claims Act allows the government to recover damages and penalties for the presentation of false claims for payment to the United States. FIRREA allows the government to impose civil penalties for violations of enumerated federal criminal statutes, including fraud on the FCIC.

This case is the product of an investigation by the United States Department of Agriculture’s Office of the Inspector General and Risk Management Agency Special Investigations Staff. Assistant U.S. Attorney Joseph Barton is prosecuting the criminal case and Assistant U.S. Attorney Matthew R. Belz handled the civil investigation.

Hackett is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Feb. 22, 2022. Hackett faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables.

FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Marvin Joseph Chang, 33, of Monterey Park, charging him with assault with a dangerous weapon, brandishing a firearm during a crime of violence, being a felon in possession of ammunition, and vandalism, Acting U.S. Attorney Phillip A. Talbert announced.

According to the indictment, on Feb. 19, 2021, within Sequoia National Park, Chang assaulted an individual with a firearm and brandished a semi-automatic 9 mm pistol. He also slashed the tire of a car in a parking lot inside the park. Chang subsequently was involved in a high-speed chase outside of the park that allegedly resulted in the shooting of a California Highway Patrol officer.

Chang is prohibited from possessing firearms and ammunition as a result of a prior felony conviction for assault with a deadly weapon involving infliction of great bodily injury.

This case is the product of an investigation by the National Park Service Investigative Services Branch; the Sequoia and Kings Canyon National Parks; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the California Highway Patrol; the Tulare County Sheriff’s Office; and the Visalia Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

Chang is currently in custody in Tulare County.

If convicted, Chang faces a maximum statutory penalty of 10 years in prison on the assault and felon in possession of ammunition charges. If convicted of brandishing a firearm charge, he faces a mandatory minimum consecutive prison term of seven years. Each of the foregoing charges also carries a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Joseph John Deaser IV, 51, of Arizona, was sentenced today to four years in prison for aggravated identity theft and the illegal sale of firearms by a federally licensed dealer in violation of state law, Acting U.S. Attorney Phillip A. Talbert announced.

Under state law, California has an approved roster of firearms that may be sold to the public. A Federal Firearms Licensee is required to make sure any handgun sold is on the approved roster. There is an exemption, however, that permits licensed dealers to sell “off-roster” firearms, or firearms that do not appear on the approved roster, to sworn peace officers. Peace officers who own non-roster firearms may generally sell them to the public in a private sale, as long as the sale is brokered by a Federal Firearms Licensee.

According to court documents, Deaser was a federally licensed firearm dealer who owned and operated Capital Gun Club, a members-only gun club in Roseville, California. Between December 2014 and April 2018, Deaser circumvented California’s law by conducting at least 50 straw purchases of new off‑roster firearms using the names and personally identifiable information (PII) of six peace officers that he had obtained through legitimate firearm transactions. By falsely reporting sales to peace officers, Deaser obtained new “off-roster” firearms registered to peace officers that he then sold to members of his private gun club, who could not have otherwise purchased the firearms. 

In order to complete many of the transactions, Deaser completed and signed federal and state firearm transaction forms that the purchaser was required to complete using an officer’s identity as the purchaser. Deaser also placed his finger print — almost always his middle finger — on the state firearm transaction forms in the box designated for the “Purchaser’s Right Thumb Print.”

Publicly, Deaser was an advocate for gun safety and universal background checks, who testified on several occasions before federal and state legislatures. In imposing the sentence, Judge Nunley found that Deaser had abused his position of trust as a Federally Licensed Firearms dealer and remarked, “I think it’s totally acceptable to, on the one hand, look at the things he’s done, but on the other hand, look at the life he was living behind the scenes. You know … on the one hand, he was … advocating for sensible gun laws before Congress, before local governments, before organizations, and on the other side of it, he was trying to circumvent those very same gun laws.”

“Firearms trafficking is a primary focus of ATF as one of the most pressing problems we face today,” said Special Agent in Charge Patrick Gorman, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). “ATF’s strategy is multi-faceted and includes the inspection of licensed gun dealers, the identification/arrest of straw purchasers, and a greater intelligence-driven emphasis by identifying and targeting individuals responsible for organizing and directing illegal firearms trafficking operations in the United States. When criminal wrongdoing by a Federal Firearms Licensee (FFL) is suspected, the FFL will be thoroughly investigated. FFLs, as a whole, have the responsibility to ensure that firearms are not illegally diverted from lawful commerce. The vast majority who comply with the regulations suffer when a small number of corrupt FFLs threaten public safety by abusing the secondary market to obtain and sell firearms illegally for their own greed. ATF will continue to work alongside our law enforcement partners to ensure crimes of this nature are investigated and prosecuted.”

“Circumventing California law to illegally sell firearms by using the identities of peace officers in order to make a profit is a crime that violates the public’s trust and puts the safety of Californians at risk,” said California Attorney General Rob Bonta. “Successful cooperation with our law enforcement partners has put an end to this scheme and brought resolution to this case.”

Deaser was charged and pleaded guilty in May 2019.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the California Depart of Justice’s Bureau of Firearms. Assistant U.S. Attorneys Michael D. Anderson and Shelley D. Weger are prosecuting the case.

SACRAMENTO, Calif. — Hopelyn Rhiannon Ausk, 25, of Stockton, pleaded guilty today to mail fraud, bank fraud and aggravated identity theft, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Ausk engaged in two separate fraud schemes that caused significant harm to the U.S. Department of Labor’s Unemployment Insurance (UI) program and identity-theft victims throughout Northern California.

First, between May and September 2020, Ausk perpetrated a fraud scheme that targeted California’s unemployment insurance benefit program administered by the Employment Development Department (EDD). Under the 2020 CARES Act and the Pandemic Unemployment Assistance (PUA) program, EDD was responsible for administering benefits for qualifying residents who could no longer find employment due to the COVID-19 pandemic. In this scheme, Ausk used victims’ personally identifiable information (PII) to submit at least 20 fraudulent claims to EDD. For 12 of these claims, EDD paid out over $160,000 in the form of Bank of America debit cards that were mailed to Ausk’s residence.

Second, between January 2019 and September 2020, Ausk perpetrated a bank fraud scheme that involved stealing U.S. mail and harvesting bankcards, financial information, checks, and PII for use in fraudulent activity. For example, in July 2019, she used a stolen Bank of America debit card to purchase online merchandise from Louis Vuitton for delivery to her residence.

This case is the product of an investigation by the U.S. Postal Inspection Service and the Stockton Police Department. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.

Ausk is scheduled to be sentenced by U.S. District Judge John A. Mendez on Nov. 9, 2021. Ausk faces a maximum statutory penalty of 20 years in prison for mail fraud, 30 years in prison for bank fraud, a mandatory additional sentence of two years in prison and a maximum fine of $250,000 on each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which consider a number of variables.

SACRAMENTO, Calif. — On Monday, a federal jury found James Christopher Castle, 57, formerly of Petaluma, guilty of 35 counts in a bank fraud scheme that sought to fraudulently eliminate home mortgages and then profit on the subsequent home sales, Acting U.S. Attorney Phillip A. Talbert announced. This was the first jury trial in the Eastern District of California since the onset of the COVID-19 pandemic in March 2020.

“Castle decided to game the system so that he could profit in the midst of the then looming financial crisis, to which his actions contributed,” said Acting U.S. Attorney Talbert. “We are gratified by the jury’s verdict for this significant fraud scheme.”

“Mortgage fraud  is not a victimless crime. Identifying and investigating those who abuse the system for their own personal gain ensures the mortgage system is safer and fairer for everyone. The FBI affirms our commitment to pursuing those who leverage false statements made to financial institutions to enrich themselves while threatening the stability of the banking system and taking advantage of distressed homeowners desperate to retain their homes or start anew without significant losses,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “We thank our domestic and international law enforcement partners for their continued efforts to ensure fugitives will face justice regardless of the distance traveled or time that has elapsed.”

According to court documents, in May 2020, Castle was extradited to the United States from Australia. Castle had fled to New Zealand and then Australia in 2011 when it became clear that his scheme was unraveling. After a three-year extradition process, Castle was transported back to the United States by the U.S. Marshals Service to stand trial in the United States.  

“The U.S. Marshals Service successfully conducted this extradition during the height of the pandemic,” said Acting U.S. Marshal Lasha R. Boyden for the Eastern District of California. “To minimize exposure, the extradition was conducted expeditiously with minimal time on the ground. All safety precautions were implemented, and Mr. Castle was extradited back to the United States without incident.”

Between April 22, 2010, and Nov. 18, 2011, Castle was the leader of a conspiracy that ran a “mortgage elimination program” that purported to help distressed homeowners avoid foreclosure. The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.

As a requirement for participation in the “mortgage elimination program,” the conspirators enrolled homeowners as members in a Nevada City-based church named Shon-te-East-a, Walks With Spirit, or its successor entity Pillow Foundation. The conspirators told the homeowners that these entities would offer protection against the banks.

Castle directed other co-conspirators in all aspects of the mortgage elimination program, including recruiting homeowners into the scheme, marshaling the necessary recorded documents, and guiding the homes through sale. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Castle would cause a sham deed of trust to be created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.

The next step in the process was also a recorded document. The conspirators caused a fake deed of reconveyance to be recorded, giving the appearance that the true mortgage loan had been discharged and that the true lienholder no longer had a security interest in the home.

With title appearing to be clear, the conspirators caused the sale of the home and split the proceeds between the co-conspirators and the homeowners.

In total, 37 properties were sold through the Shon-te-East-a conspiracy. The conspirators recorded fraudulent documents on an additional approximately 100 homes but were unable to sell these before the scheme unraveled.

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

Three other co-defendants have previously entered guilty pleas. On April 21, 2017, Remus A. Kirkpatrick, formerly of Oceanside, pleaded guilty to one count of falsely making writings of lending associations. On May 26, 2017, Michael Romano, of Benicia, pleaded guilty to conspiracy. On July 14, 2017, Laura Pezzi, of Roseville, pleaded guilty to falsely making writings of lending associations.

In related cases, on Sept. 4, 2015, Tisha Trites and Todd Smith, both of San Diego, pleaded guilty to related charges.

Two other co-defendants, George B. Larsen and Larry Todt, were convicted of conspiracy and bank fraud following a jury trial in December 2017.

Co-defendant John Michael DiChiara passed away on Aug. 24, 2019, while awaiting trial.

Castle is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on Oct. 28, 2021, at which time he faces a maximum penalty of 30 years in prison and a $1 million fine for bank fraud, 10 years in prison and a $250,000 fine for falsely making documents of a lending association, and five years in prison and a $250,000 fine for conspiracy. 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. — Daniel Wayne Benner, 35, pleaded guilty today to distribution of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, between July 3 and 5, 2019, Benner distributed child pornography, using the Kik Messenger app. Benner used a smartphone, the internet, and Kik messenger to distribute to a person located in Arkansas a video and still images depicting minors engaging in sexually explicit conduct.. At the time of his arrest, Benner’s publicly accessible Facebook profile included a picture of a “My Little Pony” costume with a caption reading, “Rainbow Dash is looking to come to your birthday party, and she brings candy and music … contact me for quotes / She will travel anywhere in Sacramento County.” Benner stated that he and two friends were going to start a birthday party business but were unable to secure any customers.

This case is the product of an investigation by the FBI and the Internet Crimes Against Children Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Christina McCall is prosecuting the case.

Benner is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Oct. 25, 2021. Benner faces a mandatory minimum sentence of five years and a maximum statutory penalty of 20 years in prison, a $250,000 fine, and up to a lifetime of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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. — James Vincent Jr., 52, of Reno, Nevada, pleaded guilty today to theft of government property, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, the Social Security Administration (SSA) paid monthly Social Security disability benefits to Vincent’s father until the father’s death in October 2015. The benefits were automatically deposited into a joint bank account held by both Vincent and his father. Vincent did report his father’s death to SSA, but SSA continued to deposit benefit funds into the joint account from October 2015 through May 2020. During this five-year period, Vincent maintained control of the joint account and regularly withdrew and stole the post-death Social Security payments – totaling approximately $90,000 – for his own use.

This case is the product of an investigation by the Social Security Administration, Office of the Inspector General. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.

Vincent is scheduled to be sentenced by U.S. District Judge John A. Mendez on Nov. 2, 2021. Vincent 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.

SACRAMENTO, Calif. — Matthew Core, 39, of Vallejo, was sentenced today by U.S. District Judge Kimberly J. Mueller to six years and three months in prison for committing bank fraud, aggravated identity theft, and possession of reproduced U.S. Postal Service keys, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, between February and August 2018, Core participated in a scheme to defraud banks in which he and others used counterfeit U.S. Postal Service keys to break into residential mailboxes throughout Northern California. The scheme’s participants stole mail from these mailboxes and harvested bankcards, personal and business checks, and government-issued IDs, all belonging to the mail-theft victims. They then altered some of the checks and bankcards with the intent to use them to defraud financial institutions.

In one instance, in April 2018, Core deposited an altered check issued by JP Morgan Chase Bank into his own bank account at an ATM in Vallejo. By depositing the altered check, Core knowingly used the identity of a mail-theft victim without legal authority. Core committed these acts with the intent to defraud JP Morgan Chase, which was insured by FDIC. Similarly, on Aug. 29, 2018, when Core and others were arrested in Granite Bay, Core knowingly possessed at least four counterfeit U.S. Postal Service keys and two U.S. Postal Service locks. He possessed these items with the intent to commit identity theft and bank fraud, including using them to steal U.S. Mail. On that same date, Core also possessed at least fifteen unauthorized bankcards.

In April 2020, after pleading guilty, Core sought pretrial release pending his sentencing based on his condition as a cancer survivor and vulnerability to contracting the COVID‑19 virus in jail. He was shortly released and admitted to a residential drug treatment program. Two months later, however, Core absconded from the drug treatment facility without permission, and a federal warrant was issued for his arrest. In July 2020, the defendant was arrested in South Lake Tahoe after he fled from police. During a search of his car, law enforcement officers found an assault rifle and an empty 15-round magazine for a Springfield .45‑caliber handgun in the trunk.

This case was the product of an investigation by the U.S. Postal Inspection Service, the Placer County Sheriff’s Office, the Vallejo Police Department, and the South Lake Tahoe Police Department. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.

Core has been in custody since his July 2020 rearrest and will begin serving his sentence immediately.

SACRAMENTO, Calif. — A 12-count indictment was unsealed today charging West Sacramento residents Kimberly Acevedo, 50, and Philip Rich, 49, with mail fraud, aggravated identity theft, possession of stolen mail, and unlawful possession of 15 or more unauthorized access devices, Acting U.S. Attorney Phillip A. Talbert announced.

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

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

If convicted, Acevedo and Rich both face a maximum statutory penalty of 20 years in prison for mail fraud, five years in prison for possessing stolen mail, and 10 years in prison for possessing more than 15 unauthorized access devices. The defendants also face a mandatory additional sentence of two years in prison if convicted of aggravated identity theft and a maximum fine of $250,000 on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Michael Shafer, 33, of Modesto, pleaded guilty today to conspiracy to distribute and possess with intent to distribute heroin and conspiracy to distribute and possess with intent to distribute marijuana, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Shafer was the Vice President of the Hells Angels Motorcycle Club in Modesto in 2019. As part of a years-long investigation into the Hells Angels Motorcycle Club, investigators obtained a court-authorized wiretap for Shafer’s phone. The wiretapped calls and messages showed that Shafer was conspiring to distribute marijuana and heroin. Specifically, in April 2019, Shafer conspired with a former Hells Angels member who was incarcerated in Pleasant Valley State Prison to smuggle heroin into prison.

This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service-Criminal Investigation, the Modesto Police Department, the Turlock Police Department, the Stanislaus County District Attorney’s Office, the California Department of Corrections and Rehabilitation, and the California Highway Patrol. Assistant U.S. Attorneys Ross Pearson and Laurel Montoya are prosecuting the case.

Shafer is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Oct. 22. Shafer faces a maximum statutory penalty of 40 years in prison, a mandatory minimum sentence of five 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 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.

SACRAMENTO, Calif. — Filemon Padilla Martinez, 56, of Mexico, was sentenced Thursday by U.S. District Judge Morrison C. England Jr. to 10 years in prison for conspiring to manufacture marijuana and depredation of federal lands, Acting U.S. Attorney Phillip A. Talbert announced.

Judge England also ordered Padilla Martinez to pay $24,778 in restitution.

According to court documents, Padilla Martinez conspired with three co-defendants to grow marijuana in the Tomhead Mountain area in Shasta-Trinity National Forest. Padilla Martinez recruited, trained, and supplied two of these co-defendants, whom he left to live and work on the site while he stayed either at a nearby stash house or at his residence in Ione, California. The marijuana grow on Tomhead Mountain consisted of 1,054 marijuana plants.

This case is the product of an investigation by the U.S. Forest Service, the Tehama County Sheriff’s Department, and the California Department of Fish and Wildlife with assistance from the Amador County Sheriff’s Office and the California Department of Justice. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

Oscar Francisco-Diego and Francisco Gomez Sanchez, two of Padilla Martinez’s co-defendants, have been previously sentenced for their role in the conspiracy. Timothy Charles Wilson, the remaining co-defendant, is currently pending trial. The charges against Wilson are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jose Jesus Torres Garcia, 30, of Fresno, charging him with possessing fentanyl with intent to distribute it and possessing a firearm in furtherance of that drug trafficking offense, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, on a Facebook Messenger group page dedicated to narcotics trafficking, Torres Garcia advertised the sale of narcotics, including counterfeit oxycodone pills stamped with an “M” on one side and a “30” on the other. On July 8, 2021, investigators executed a federal search warrant at Torres Garcia’s residence and seized several controlled substances, including the “M” “30” fentanyl pills, as well as a loaded, short-barreled AR-15 rifle with an extended magazine attached.

This case is 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 is prosecuting the case.

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

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 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.

A California man was sentenced today to 63 months, or more than five years, in prison for his role in a scheme to illegally export integrated circuits with military applications to China the required filing of electronic export information. As part of his sentence, the Judge ordered Shih to pay $362,698 in restitution to the IRS and fined him $300,000.

Yi-Chi Shih, 66, of Hollywood Hills, was convicted on July 2, 2019, to one count of conspiracy to violate the International Emergency Economic Powers Act (IEEPA) and the Export Administration Regulations (EAR). Shih also was convicted of four counts of mail fraud, two counts of wire fraud, one count of conspiracy to gain unauthorized access to a protected computer to obtain information, one count of making false statements to an FBI agent, three counts of subscribing to a false tax return, and four counts of making false statements to the IRS about his foreign assets.

According to court documents, Shih defrauded a U.S. company that manufactured broadband, high-powered semiconductor chips known as monolithic microwave integrated circuits (MMICs) out of its confidential and proprietary business information that was part of its MMIC manufacturing services, according to trial evidence. As part of the scheme, Shih accessed the victim company’s web portal after obtaining that access through an associate who posed as a domestic customer seeking to obtain custom-designed MMICs that would be used solely in the United States. In this way, Shih concealed his true intent to export the U.S. company’s MMICs to the People’s Republic of China.

The victim company’s semiconductor chips have several commercial and military applications. MMICs are used in missiles, missile guidance systems, fighter jets, electronic warfare, electronic warfare countermeasures and radar applications. The MMICs Shih exported to China were intended for AVIC 607, a state-owned entity in the PRC.

Shih was the President of Chengdu GaStone Technology Company (CGTC), a Chinese company that was building a MMIC manufacturing facility in Chengdu. In 2014, CGTC was placed on the Commerce Department’s Entity List, according to court documents, “due to its involvement in activities contrary to the national security and foreign policy interest of the United States – specifically, that it had been involved in the illicit procurement of commodities and items for unauthorized military end use in China.”

Shih used a Hollywood Hills-based company he controlled – Pullman Lane Productions, LLC – to funnel funds provided by Chinese entities to finance the manufacturing of the MMICs by the victim company. Pullman Lane received financing from a Beijing-based company that was placed on the Entity List the same day as CGTC “on the basis of its involvement in activities contrary to the national security and foreign policy interests of the United States,” according to court documents.

Shih’s associate, Kiet Mai, pleaded guilty in December 2018 to one felony count of smuggling and was sentenced to 18 months’ probation and a $5,000 fine.

Acting Assistant Attorney General Mark Lesko of the Justice Department’s National Security Division and Acting U.S. Attorney Tracy Wilkison for the Central District of California made the announcement.

The FBI, the U.S. Department of Commerce’s Bureau of Industry and Security Office of Export Enforcement, and IRS Criminal Investigation investigated the case, with valuable assistance provided by the Royal Canadian Mounted Police.

Assistant U.S. Attorneys Judith A. Heinz, Melanie Sartoris, Khaldoun Shobaki, William M. Rollins, James C. Hughes and Daniel G. Boyle of the Central District of California prosecuted the case with assistance from Elizabeth Cannon, Deputy Chief of the National Security Division’s Counterintelligence and Export Control Section.

SACRAMENTO, Calif. — The U.S. Department of Justice today launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C.

Each strike force region will be led by designated United States Attorneys, who will collaborate with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and with state and local law enforcement partners within their own jurisdiction (where firearms are used in crimes) as well as law enforcement partners in areas where illegally trafficked guns originate. These officials will use the latest data, evidence, and intelligence from crime scenes to identify patterns, leads, and potential suspects in violent gun crimes.

“All too often, guns found at crime scenes come from hundreds or even thousands of miles away. We are redoubling our efforts as ATF works with law enforcement to track the movement of illegal firearms used in violent crimes. These strike forces enable sustained coordination across multiple jurisdictions to help disrupt the worst gun trafficking corridors,” said Attorney General Merrick B. Garland. “The Department of Justice will use all of its tools – enforcement, prevention, intervention, and investment – to help ensure the safety of our communities – the department’s highest priority.”

According to gun trace data, a significant number of firearms recovered in the Eastern District of California originate from other parts of the state and from other states including Nevada and Arizona and are illegally trafficked into the district. The new strike force, which will be co-led by Acting U.S. Attorney Phillip A. Talbert, Eastern District of California, and Acting U.S. Attorney Stephanie Hinds, Northern District of California, will help ensure sustained and focused coordination between law enforcement and prosecutors in the region with their counterparts in locations where many of the firearms originate.

“Because many of the firearm source locations in the Eastern District of California overlap with the source locations for firearms recovered in other parts of California, the San Francisco Bay Area/Sacramento Region Strike Force will work closely with the Los Angeles Strike Force,” Acting U.S. Attorney Talbert said. “With our law enforcement partners, we will work to stem the flow of illegally trafficked guns that end up in the hands of criminals who use them to commit violent crimes.”

The strike forces represent one important, concrete step in implementing the Department’s Comprehensive Violent Crime Reduction Strategy, which was announced on May 26, 2021. The comprehensive strategy supports local communities in preventing, investigating, and prosecuting gun violence and other violent crime—and requires U.S. Attorneys’ offices to work with federal, state, local and tribal law enforcement, as well as the communities they serve, to address the most significant drivers of violence in their districts. In guidance to federal agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made clear that firearms traffickers providing weapons to violent offenders are an enforcement priority across the country.

Department of Justice Efforts to Address Violent Crime

Since April 2021, the Department has taken the following steps to reduce and prevent violent crime, especially the gun crime that is often at the core of the problem:

• April 8, 2021 – Attorney General Garland, alongside President Biden, announced four concrete steps for addressing gun violence: ATF would propose a new rule within 30 days to help curb the proliferation of so-called ghost guns, ATF would propose a new rule within 60 days on stabilizing braces used to convert pistols into short-barreled rifles, the Department would publish model state extreme risk protection order legislation within 60 days; and ATF would begin preparing a thorough and detailed new public study of firearms trafficking for the first time in 20 years.
• In April 2021, the Office of Justice Programs also made clear when existing grant funds could be used to support Community Violence Intervention (CVI) programs.
• On May 7, 2021, meeting the Attorney General’s announced timeline, ATF issued a notice of proposed rulemaking to update outdated firearms definitions and to help address the proliferation of ghost guns.
• May 26, 2021, the Attorney General announced the Department’s comprehensive strategy to reduce violent crime, including an overall Department Violent Crime Reduction Strategy, the strengthening of Project Safe Neighborhoods (PSN), and a directive to the U.S. Attorneys to work with their local partners in addressing the increase in violence that typically occurs over the summer (with specific support from DOJ law enforcement agencies)
• On June 7, meeting the Attorney General’s announced timeline, ATF issued a notice of proposed rulemaking to clarify that the restrictions imposed by the National Firearms Act apply when stabilizing braces are used to convert pistols into short-barreled rifles.
• On June 8, meeting the Attorney General’s announced timeline, the Department published model state extreme risk protection order legislation.
• On June 22, 2021, the Attorney General announced that the Department would be forming five Firearms Trafficking Strike Forces within 30 days.
• On, June 23, 2021, the Attorney General, alongside President Biden, announced steps that ATF would take to hold rogue gun dealers accountable for their actions. They include applying a “no tolerance” policy for federal firearms licensers (FFLs) that willfully commit violations that endanger public safety; designating points of contact for state and local government officials to report concerns about rogue FFLs; formalizing the use of public safety factors for inspection prioritization; sharing inspection information with states that regulate firearms dealers themselves; resuming the practice of notifying revoked dealers on how to dispose of their inventory and the potential criminal consequences of continuing to engage in the business; increasing ATF’s resources for inspections (see, FY 2022 Budget request); and publicly posting disaggregated inspection information to ATF’s website.

FRESNO, Calif. — On Thursday, July 15, a grand jury returned an indictment against three defendants for a scheme to submit over $1.4 million in fraudulent unemployment insurance claims in other inmates’ identities to the California Employment Development Department (EDD), Acting U.S. Attorney Phillip A. Talbert announced.

The indictment charges Daryol Richmond, 30; Telvin Breaux, 29; and Holly White, 30, with conspiracy to commit mail fraud and aggravated identity theft. Richmond and Breaux are inmates at the Kern Valley State Prison and California Correctional Institute, respectively. White resides in Los Angeles. The indictment was unsealed today following White’s arrest.

According to court documents, the underlying applications for the claims falsely stated that the inmates worked within the prescribed period as clothing merchants, handymen, and other jobs, and were available to work. To avoid detection, the defendants created fictitious email accounts and used different physical addresses throughout Southern California for the fraudulent claims. In some cases, they paid family members and associates up to $1,000 to use their physical addresses. The actual loss to the EDD and United States is over $270,000.

This case is the product of an investigation by the FBI and EDD. Assistant U.S. Attorneys Joseph Barton and Melanie Alsworth are prosecuting the case.

If convicted of the conspiracy to commit mail fraud, the defendants each face a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. If convicted of the aggravated identity theft, they each face a mandatory two-year consecutive sentence. 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 several variables. The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Kevin Blaine Cline, 47, of Fairfield, pleaded guilty today to attempted online coercion of a child, Acting U.S. Attorney Phillip A. Talbert announced.

According to the criminal complaint, on Nov. 1, 2019, an undercover agent observed Cline’s post on the social media platform Whisper that said he was “Looking for dad’s (sic) who love their daughters near me I … Have a question.” The notation at the bottom of Cline’s post said, “Freaky Sexual Desires.” The undercover agent, posing as a dad, engaged in a two-day conversation on Whisper with Cline, and Cline sent the agent two images of child pornography. Cline planned a meeting with the “dad” and “daughter” in order to sexually molest her. Cline then drove from Fairfield to Pleasant Hill to meet up with what he believed to be a seven‑year-old girl. When Cline arrived, however, he was placed under arrest.

The factual basis of the plea agreement contains a description of the sexual activity that Cline wanted to engage in with the seven-year-old girl, as well as sexual acts he planned to perform with a 10-year-old girl in Washington state.

This case is the product of an investigation by the Silicon Valley Internet Crimes Against Children Task Force (SVICAC) a federally and state-funded task force with agents from federal, state, and local agencies that investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. The Contra Costa District Attorney’s Office and Homeland Security Investigations conducted the investigation as part of the SVIAC. Assistant U.S. Attorney Christina McCall is prosecuting the case.

Cline is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Oct. 18, 2021. Cline faces a mandatory minimum penalty of 10 years in prison and 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.

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. — Orel Gohar, 30, formerly of San Francisco, was sentenced Tuesday by U.S. District Judge John A. Mendez to two and a half years in prison for conducting an illegal gambling business, conspiracy to commit money laundering, and failure to appear, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Gohar participated in operating an organization that installed and maintained illegal video slot machines at businesses open to the public across Northern California. Gohar also participated in two different conspiracies to launder the proceeds of the lucrative gambling business through co-defendants’ other businesses. In total, Gohar participated in laundering at least $650,000.

Court documents also detail Gohar’s escape from the United States by charter jet through Mexico, France, and Israel. Gohar was first arrested on Dec. 8, 2017, in connection with his initial charges and granted pretrial release. On Jan. 8, 2018, he failed to appear in federal court for a hearing, and he remained a fugitive for nearly two years until his arrest in Israel in December 2019.

This case was the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistance was provided by the Department of Justice’s Office of International Affairs and Israeli authorities. Assistant U.S. Attorneys Miriam R. Hinman and Mira Chernick prosecuted the case.

Gohar is the last of eight defendants to be sentenced in connection with the illegal gambling and money laundering schemes. May Levy was sentenced on Aug. 10, 2018, to probation and a $2,000 fine; Atir Dadon was sentenced on June 14, 2019, to one year and 10 months in prison and a $10,000 fine; Bar Shani was sentenced on July 12, 2019, to one year and eight months in prison and a $10,000 fine; Adam Atari was sentenced on Sept. 6, 2019, to two years and seven months in prison; Yaniv Gohar was sentenced on Dec. 20, 2019, to three years and nine months in prison; Raz Razla was sentenced on Oct. 6, 2020, to probation and a $5,500 fine; and Eran Buhbut was sentenced on Jan. 12, 2021, to probation and a $4,000 fine.

SACRAMENTO, Calif. — Matthew Keys, 34, of Vacaville, was sentenced today for violating the terms of his supervised release, Acting U.S. Attorney Phillip A. Talbert announced.

U.S. District Judge Kimberly J. Mueller ordered Keys to serve an additional six months in prison to be followed by 18 months of supervision with specific computer monitoring conditions.

Keys was originally indicted in 2013 on charges related to a scheme that resulted in unauthorized changes to an article on the Los Angeles Times website. The government also suspected Keys had sent threatening emails to employees at KTXL FOX40 where he used to work. Keys later confessed to sending the emails and to his role in changing the Los Angeles Times article. After a jury trial to resolve other disputes, such as the amount of the losses the Los Angeles Times suffered, Keys was convicted on all three counts of the superseding indictment. He was sentenced to two years in prison and two years of supervised release.

After Keys completed his prison sentence, he began working as the digital editor at Comstock’s Magazine in Sacramento. Keys wrote stories for Comstock’s and managed its website and social media accounts, including a YouTube channel. The magazine published videos on YouTube, and it used embedded links to YouTube videos in stories published on its own website. Keys resigned abruptly in late January 2020, a little less than a year after he started and about three months before his term of supervised release was set to expire.

In February 2020, an employee at Comstock’s Magazine discovered that a password to the Google account associated with the magazine’s YouTube account no longer functioned. Shortly thereafter, the employee found that links associated with videos on the YouTube account were broken. Comstock’s employees found that the videos had been deleted from the YouTube channel, along with nearly 700 subscriptions to the channel. The magazine then contacted federal prosecutors and the FBI with its suspicions that Keys was responsible.

The U.S. Probation Office, who was supervising Keys, investigated the deletion of the videos with the assistance of the FBI. Among other evidence, the investigation showed that Keys searched Google for the term “how to delete youtube channel” and then executed a command to delete the Comstock’s YouTube channel on Feb. 10, 2020.

On April 20, 2021, after an evidentiary hearing, Judge Mueller found that Keys violated his term of supervised release by committing new crimes: knowingly causing the transmission of command causing damage to a protected computer, and unauthorized destruction of data.

“Businesses and individuals are already struggling against threats to the integrity of their data from hackers and data thieves,” Acting U.S. Attorney Talbert said. “They should not also have to worry about data destruction from former employees seeking retribution. Federal law enforcement will vigorously investigate malicious data-deletion with all available tools.”

Assistant U.S. Attorneys Paul Hemesath and Matthew D. Segal prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment Thursday against Balbino Sablad, 79, of Vallejo, charging him with traveling with the intent to engage in illicit sexual conduct and conspiring to do the same, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, in 2019, Sablad flew to the Philippines with the intention of engaging in sexual conduct with a child under the age of 16. Sablad had engaged in sexual chats with the intended victim over Facebook and had sent her at least $1,800 prior to his travel to the Philippines. He had also discussed with a co-conspirator his plan to sexually abuse the victim in the Philippines.

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

Sablad was arrested on July 1, 2021.

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

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

FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Fresno residents David Garcia, 31; Luis Perez, 34; and Gerardo Perez, 48, charging them with conspiracy to distribute and to possess with the intent to distribute 500 grams or more of cocaine and methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.

Garcia was charged in three additional counts: one count of distributing cocaine and methamphetamine, one count of distributing cocaine, and one count of being a felon in possession of a firearm.

According to court documents, between April 2020 and May 2021, the defendants worked together to distribute more than 500 grams of cocaine, some of which was adulterated with methamphetamine.

This case is the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Marshals Service, the Fresno Police Department, the Fresno County Sheriff’s Office, the Tulare County Sheriff’s Department, the Multi-Agency Gang Enforcement Consortium, and the Fresno County District Attorney’s Office. Assistant U.S. Attorney Katherine E. Schuh is prosecuting the case.

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

SACRAMENTO, Calif. — Akop Atoyan, 48, of Glendale, pleaded guilty today to one count of conspiracy to commit health care fraud and one count of conspiracy to pay and receive health care kickbacks, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Atoyan and his wife, Liana Karapetyan, owned and controlled home health care and hospice agencies in the greater Sacramento area: ANG Health Care Inc., Excel Home Healthcare Inc., and Excel Hospice Inc. On behalf of the agencies, Atoyan and Karapetyan certified to Medicare that they would not pay kickbacks in exchange for Medicare beneficiary referrals to the agencies.

Despite their certifications, from at least July 2015 through April 2019, Atoyan and Karapetyan paid and directed others to pay kickbacks to multiple individuals for beneficiary referrals, including employees of health care facilities, as well as employees’ spouses. The kickback recipients included John Eby, a registered nurse who worked for a hospital in Sacramento; Anita Vijay, the director of social services at a skilled nursing and assisted living facility in Sacramento; Jai Vijay, Anita Vijay’s husband; and Mariela Panganiban, the director of social services at a skilled nursing facility in Roseville.

In total, Atoyan, Karapetyan, and others caused the agencies to submit over 8,000 claims to Medicare for the cost of home health care and hospice services. Based on those claims, Medicare paid the agencies approximately $31 million. Of that amount, Medicare paid the agencies over $2 million for services purportedly provided to beneficiaries, but these beneficiaries were referred in exchange for kickbacks paid to, among others, Eby, Anita Vijay, Jai Vijay, and Panganiban. Because the agencies obtained the beneficiary referrals by paying kickbacks, the agencies should not have received any Medicare reimbursement.

This case is a product of an investigation by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services’ Office of Inspector General. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.

As part of his guilty plea, Atoyan agreed to pay $2,525,363 in restitution to the U.S. Department of Health and Human Services. He also agreed to forfeit that same amount to the United States.

U.S. District Judge Morrison C. England Jr. is scheduled to sentence Atoyan on Oct. 7, 2021. Atoyan faces maximum statutory penalties of 10 years in prison for the health care fraud conspiracy charge and five years in prison for the kickback conspiracy charge. He also faces a maximum fine of $250,000 or twice the gross gain or loss for each charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

In separate cases, Karapetyan, Eby, Jai Vijay, Anita Vijay, and Panganiban pleaded guilty for their roles in the kickback scheme. They await sentencing.