Eastern District of California

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment against Lawrence Guerain Fleming, 37, of Fairfield, charging him with two counts of being a felon in possession of ammunition, Acting U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed following Fleming’s arrested on May 19.

According to court documents, on Feb. 1, 2020, Fleming lost control of his motorcycle and crashed on Highway 50 in Sacramento County. A witness stopped to help Fleming, and Fleming asked the witness to conceal a ghost gun loaded with eight rounds of ammunition. When the police arrived, the witness told them about the firearm. A warrant was later issued for Fleming’s arrest. On March 17, 2021, police officers stopped Fleming for speeding and arrested him on this warrant. During the arrest, Fleming told officers he had a weapon on his person. This weapon was also a ghost gun and was loaded with a high-capacity magazine containing 14 rounds. A search of Fleming’s car during his federal arrest on May 19 led to the discovery of a third ghost gun, also loaded with an extended magazine, in the trunk of his vehicle.

Fleming cannot lawfully possess a firearm or ammunition because he has a prior federal felony conviction in the Northern District of California for assaulting a United States Postal Service carrier with a firearm. Fleming pleaded guilty to this offense on Oct. 21, 2005.

This case is the product of an investigation by the California Highway Patrol, the Fairfield Police Department, the Sacramento County District Attorney’s Office, the Solano County District Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the FBI’s Solano County Violent Crimes Task Force. Assistant U.S. Attorneys Alstyn Bennett and Adrian T. Kinsella are prosecuting the case.

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

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

FRESNO, Calif. — A federal grand jury brought a 14-count indictment against Christopher Lawrence Smith, 34, of Bakersfield, charging him with being a felon in possession of a firearm, bank fraud, use and possession of unauthorized debit and credit cards, aggravated identity theft, possession of stolen mail, and unauthorized possession of Postal Service keys and locks, Acting U.S. Attorney Phillip A. Talbert announced.

According to the indictment, Smith unlawfully possessed a 12-gauge shotgun, and from March 2020 through July 2020, he obtained hundreds of pieces of stolen mail that included checks, debit cards, and credit cards belonging to other individuals and businesses. Smith then altered and forged the stolen checks, and used the stolen debit cards to deposit the checks into victims’ bank accounts and make cash withdrawals. Smith also used the stolen debit cards and credit cards to make unauthorized purchases at retail stores. Smith’s scheme caused at least $20,000 in fraudulent transactions to be made on the victims’ bank accounts, debit cards, and credit cards.

This case is the product of an investigation by the U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Joe Barton and Vincente Tennerelli are prosecuting the case.

If convicted, Smith faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for each of the felon in possession of a firearm, use and possession of unauthorized debit and credit cards, and unauthorized possession of Postal Service keys or locks charges, a maximum statutory penalty of 30 years in prison and a fine of up to $1 million for each of the bank fraud charges, a maximum statutory penalty of five years in prison and a fine of up to $250,000 for the possession of stolen mail charge, and a mandatory two-year sentence consecutive to other counts and a fine of up to $250,000 for each of the aggravated identity theft charges. Any sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations. Smith is presumed innocent until and unless he is proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — SACRAMENTO, Calif. — Acting U.S. Attorney Phillip A. Talbert joins the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), and the California Department of Justice today to advise the public that they should not be asked to pay to receive the COVID-19 vaccine and warned COVID-19 vaccination providers not to seek payment from individual COVID-19 vaccine recipients.

COVID-19 vaccination providers participating in the U.S. Centers for Disease Control and Prevention (CDC) COVID-19 Vaccination Program are required to sign an agreement to receive and dispense vaccines. Among requirements in the agreement, providers must administer the vaccine regardless of the recipient’s ability to pay. While providers may seek appropriate reimbursement from a public or private program or plan that covers COVID-19 vaccine administration fees, providers may not seek any reimbursement from the vaccine recipient.

Noncompliance with the terms of the Provider Agreement, such as by billing vaccine recipients for the COVID-19 vaccine or denying an individual a vaccination because they are unable to pay any out-of-pocket fees, may result in the provider’s suspension or termination from the CDC COVID-19 Vaccination Program and potential criminal and civil penalties.

“Charging people to get the COVID-19 vaccine or denying people from getting the vaccine if they cannot pay is a risk to public health and safety, and disproportionately impacts at-risk communities and communities of limited means,” said Acting U.S. Attorney Talbert. “This violation of the terms and conditions of CDC’s vaccination program is also a potential violation of the civil False Claims Act and other civil and criminal statutes. Our office has sent multiple cease and desist letters to vaccine providers that they must immediately stop this practice. All vaccine providers must comply with the agreement, and I urge members of the public to report those providers who do not.”

“Providers participating in the CDC’s Vaccination Program must administer the COVID-19 vaccine at no cost to recipients. In addition, providers may not charge for office visits or require additional medical services to receive the vaccine,” said HHS-OIG Special Agent in Charge Steven J. Ryan. “While the nation continues to address the ongoing pandemic, it is imperative that providers adhere to the terms of the program so as to not dissuade individuals from obtaining the COVID-19 vaccine.”

“COVID-19 has taken a toll on every aspect of our lives, but we are finally turning a corner and must continue working together to get California back on track,” said California Attorney General Rob Bonta. “Vaccines are a key component of that plan. Unfortunately, some vaccine providers are choosing to charge for something that should be free to everyone in our community. Charging for a COVID-19 vaccination creates a barrier to low-income families, including communities who have been disproportionately impacted by the pandemic. Let me be clear: COVID-19 vaccines are available at no charge to all who qualify.”

If you know or suspect that any healthcare provider or pharmacy is improperly charging for the COVID-19 vaccine, please report to 1-800-MEDICARE (1-800-633-4227) or www.Medicare.Gov/Medicarecomplaintform

FRESNO, Calif. — Elias Zambrano Jr., 41, of Fresno, pleaded guilty today to conspiring to distribute and possess with intent to distribute marijuana that was shipped from Fresno to Kansas City, Missouri, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, in November 2018, Zambrano’s co-defendants coordinated the shipment of nearly 500 pounds of marijuana to Kansas City. The first shipment was seized from Halen Frazier, of Kingsville, Missouri, during a traffic stop after Tien Van Phan, of Milpitas, delivered 92 pounds of marijuana to him in two suitcases at a hotel in Kansas City.

According to the plea agreement, Zambrano helped Patrick Maldonado, of Madera, to pack 384 pounds of marijuana for a second shipment that was placed in a hidden compartment in a trailer. David Agustus McGowan, of Kansas City, drove the truck that towed the trailer. That load was intercepted by Arizona troopers after stopping McGowan for a broken tail light on his truck. In addition to the marijuana, $1,629 in cash was seized.

Following these seizures, agents executed a search warrant at Zambrano’s residence in Fresno and found two loaded firearms, packaged bags of processed marijuana, and a money counter. As part of the plea agreement, Zambrano will forfeit the firearms, ammunition and magazines seized during the search.

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 Sheriff’s Offices of Tulare, Kings, and Fresno Counties; 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.

Frazier and Phan previously pleaded guilty and were sentenced respectively to two years in prison and three and a half years in prison. Charges are pending against the remaining defendants. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Zambrano is scheduled for sentencing on Aug. 16. He faces a minimum statutory penalty of five years in prison, a maximum statutory penalty of 40 years in prison, and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Eleno Fernandez-Garcia, 37, a citizen of 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 $45,688 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 9,654 marijuana plants and 200 pounds of processed marijuana 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 covered with marijuana debris. Three others fled from the area, which is near recreational activities and a natural spring used for bottled water.

The cultivation operation caused significant damage to the environment. Investigative agents found lethal restricted use chemicals (aluminum phosphide), fertilizer, and a dead raccoon at the grow site. Native vegetation was cut down to make room for the marijuana plants. Besides chemicals and fertilizer, there was a large amount 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.

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

Fernandez-Garcia is scheduled for sentencing on Aug. 6. He faces 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.

SACRAMENTO, Calif. — Vicente Velazquez was sentenced today to 17 and a half years in prison by U.S. District Judge Troy L. Nunley for conspiring to distribute methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Velazquez and nine others were indicted on drug trafficking charges in 2016 after a two-year wiretap investigation. Velazquez was the leader of the drug trafficking organization who ordered methamphetamine from a supplier in Mexico and then coordinated the distribution of methamphetamine through sub-distributors. Velazquez is the last of the 10 defendants to be sentenced. The following co-defendants were previously sentenced.

Roberto Aguilar Navarro, 11 years 3 months in prison on Nov. 15, 2019;

Pedro Fuentes, 10 years in prison on Jan. 24, 2019;

Luis Alberto Fernandez Contreras, 4 years and 4 months in prison, on Sept. 7, 2017;

Arnulfo Sanchez, 4 years in prison on Aug. 17, 2017;

Jorge Vega-Macias, 4 years in prison on June 13, 2019;

Ivan Alcaraz, 4 years in prison on July 13, 2017;

Edwin Arambulo, 4 years in prison on Jan. 11, 2018;

Leonel Villa Lopez, 3 years and 10 months in prison on Oct. 12, 2017; and

Victor Hernandez-Sosa, 2 years in prison on Oct. 27, 2016.

This case was the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Yuba-Sutter Narcotics Task Force, the Butte Interagency Narcotics Task Force, and the California Highway Patrol. Assistant U.S. Attorney Justin Lee prosecuted the case.

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

SACRAMENTO, Calif. — The Internal Revenue Service Criminal Investigation division and the U.S. Attorney’s Office for the Eastern District of California reminded taxpayers of the May 17 filing and payment deadline.

Due to COVID-19, the original filing deadline and tax payment due date for 2020 was postponed from April 15 to May 17. Taxpayers filing Form 1040 series returns must file Form 4868 by May 17 to obtain the automatic extension to Oct. 15.

“Every person in this country is obligated to abide by our tax laws,” said Acting U.S. Attorney Phillip A. Talbert. “It hurts everyone who follows the rules when people submit fraudulent returns and claim taxpayer money to which they aren’t entitled. It is vital that everyone meets their responsibilities to pay taxes and that they have confidence in the government agencies that enforce those rules.”

“With the May 17 tax deadline fast approaching, it is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same,” said Michael Daniels, Acting Special Agent in Charge of the IRS Criminal Investigation in Northern California. “For people facing hardships who cannot pay in full, including those affected by COVID-19, the IRS has several options available to help. The IRS encourages taxpayers to visit IRS.gov as soon as possible to explore these options and avoid accruing interest and penalties after the May 17 deadline.”

For the most up-to-date information about the tax filing deadline taxpayers can visit IRS.gov.

FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Marcus Randall, 37, of Bakersfield, charging him with distribution of fentanyl, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Dec. 16, 2020, Randall sold fentanyl pills to a victim who later ingested the pills, resulting in her overdose death.

This case is the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the United States Secret Service, the Bakersfield Police Department, Kern County Probation Department, and the California Highway Patrol. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.

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

SACRAMENTO, Calif. — Two defendants pleaded guilty Monday to charges related to methamphetamine trafficking in California, Acting U.S. Attorney Phillip A. Talbert announced.

Jonte Deon Scott, 25, of Port Richey, Florida, pleaded guilty to possession with the intent to distribute methamphetamine. Donald Conferlete Carney Jr., 23, of Tarpon Springs, Florida, pleaded guilty to conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.

According to court documents, in September 2019, Scott and Carney traveled together from Florida to California. On Sept. 5, 2019, they traveled to Bakersfield to meet Fayth Shamariah Jones, 23, of Bakersfield. Carney, Scott, and Jones agreed together to transport approximately 25 kilograms of methamphetamine to the Sacramento area, using a rented GMC Suburban. In the early morning hours of Sept. 6, 2019, officers from the California Highway Patrol attempted to stop the Suburban. Instead of stopping, the driver—later determined to be Jones—began a high-speed chase, reaching speeds up to 120 miles per hour. After approximately 10 minutes the police cornered the vehicle at a cul-de-sac in the Merced County town of Planada.

This case is the product of an investigation by the California Highway Patrol, the Merced Area Gang/Narcotics Enforcement Team (MAGNET), Homeland Security Investigations, and the Merced District Attorney’s Office. Assistant U.S. Attorney Michael W. Redding is prosecuting the case.

Jones is currently scheduled for a jury trial on June 9. The charges against her are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Scott and Carney are scheduled to be sentenced by U.S. District Judge William B. Shubb on August 9. Both defendants face a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — A Chico man pleaded guilty today to fraud in connection with a major disaster or emergency benefits, Acting U.S. Attorney Phillip A. Talbert announced.

Following the 2018 Camp Fire, Federal Emergency Management Agency (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.

Evan Palmer, 32, pleaded guilty to making a false statement in a claim for FEMA disaster assistance in connection with the Camp Fire. According to court documents, on Dec. 17, 2018, Palmer filed a false claim with FEMA seeking disaster assistance funds for a travel trailer in Paradise that he claimed was his primary residence at the time of the Camp Fire. Palmer owned the travel trailer, however, it was not his primary residence at the time of the fire. Rather, Palmer was living in a home that he leased in Chico. As a result of Palmer’s false statement, he received $26,490 in FEMA disaster benefits, which was to be used to repair or replace Palmer’s primary residence and to assist with two months of temporary rental housing.

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

Palmer is scheduled to be sentenced by U.S. District Judge John A. Mendez on Aug. 17. Palmer faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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.

SACRAMENTO, Calif. — Roeuth Korm, 33, of Stockton, was sentenced today to three years and three months in prison for being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, on July 26, 2019, deputies encountered Korm near East Waterloo Road in Stockton. Korm was on parole and subject to search. When deputies searched his car, they found a Glock semi‑automatic handgun. Korm has been convicted of several felonies and is prohibited by law from possessing a firearm.

This case was the product of an investigation by the San Joaquin County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Tanya B. Syed and Cameron Desmond prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Billy Paul Dunn, 48, of Sacramento, today to 10 years in prison for being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Dunn has been previously convicted of six felony offenses as well as misdemeanor crimes of violence for threats with intent to terrorize, assault with a deadly weapon, and battery on a non-cohabitating spouse. Dunn was released from state custody on Post Release Community Supervision in October 2019. In August 2020, Dunn was arrested with a loaded gun.

This case was the product of an investigation by the Sacramento County Sheriff’s Office and the Sacramento County Probation Department with the assistance of the Federal Bureau of Investigation’s Safe Streets Task Force. Assistant U.S. Attorney Justin Lee prosecuted the case.

This case is brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Kevin Lester Wise, 64, of Rancho Cordova, charging him with being a felon in possession of a firearm and possession of an unregistered silencer, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, a federal search warrant of Wise’s residence resulted in the discovery of a Ruger .22 caliber rifle and a silencer. Wise had previously attempted to unlawfully import another silencer from China. In 1990, Wise was convicted in Sacramento County for unlawful assault by an officer while he was serving as a deputy sheriff. In 2013, Wise was convicted in federal court in the Eastern District of California for a being a felon in possession of a firearm. As a convicted felon, Wise is prohibited from owning firearms, including silencers.

This case was the product of an investigation by the Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

If convicted, Wise 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 brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

FRESNO, Calif. — Garrett Scott Wheelen, 30, of Fresno, pleaded guilty today to mail fraud and possession of stolen mail, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, between August and November 2020, Wheelen perpetrated a mail fraud scheme to defraud the State of California by submitting fraudulent Pandemic Unemployment Assistance (PUA) claims to California’s Employment Development Department (EDD). PUA is a federal unemployment insurance program, established by the federal CARES Act and administered by EDD, that provides unemployment benefits to people impacted by the COVID-19 pandemic.

Wheelen used personally identifiable information (PII) and other information associated with real people to submit fraudulent unemployment insurance and PUA claims to EDD. The claims were submitted for his own benefit and included information relating to employment and mailing addresses that were not associated with the claimants. EDD approved at least some of the claims and caused Bank of America to mail debit cards containing unemployment benefits to an address under Wheelen’s control.

Additionally, Wheelen engaged in a scheme that involved stealing U.S. mail and harvesting bankcards, financial information, checks, and PII for use in fraudulent activity. For example, on Sept. 4, 2020, he was in possession of California State driver’s licenses, credit cards, and checks that he had stolen from U.S. mail. At least some of this mail came into his possession when he broke into a mail truck in Fresno on Aug. 11, 2020.

This case is the product of an investigation by the U.S. Postal Inspection Service, the California EDD’s Investigation Division, and the Reedley Police Department. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.

Wheelen is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on July 30. Wheelen 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 statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Carlos Biviescas, 29, of Vacaville, was sentenced today to four years and nine months in prison for being a felon in possession of ammunition, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, in May 2020, Biviescas was arrested for driving on a suspended license. A search of his car revealed a backpack containing a ghost gun loaded with an extended magazine containing 29 rounds of .40 caliber ammunition. The backpack also contained an additional 21 additional rounds of ammunition. Biviescas cannot lawfully possess firearms or ammunition because he has previously been convicted of two felony offenses.

This case was 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 prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

FRESNO, Calif. — A federal grand jury returned a seven-count indictment today against Pilar Rose, 58, of Fresno, charging her with tax evasion, obstructing an IRS tax audit, bank fraud, and aggravated identity theft, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Rose, who managed her husband’s orthodontics practice, evaded over $400,000 in taxes in 2014 and 2015. She then altered and produced financial records to the IRS during an audit to make personal expenses appear to be deductible business expenses.

In addition, Pilar Rose committed bank fraud by submitting false financial information to obtain a $1.4 million home refinance and a loan for a BMW. She committed aggravated identity theft by using an acquaintance’s Social Security number for the latter loan.

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

If convicted of evading taxes, Rose faces a maximum penalty of five years in prison and a fine of up to $250,000. If convicted of obstructing an IRS audit, she faces a maximum penalty of three years in prison and a fine of up to $250,000. If convicted of bank fraud, she faces a maximum penalty of 30 years in prison and a fine of up to $1 million. If convicted of aggravated identity theft, she faces a penalty of two years in prison consecutive to any other sentence she may receive and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Rose Marie Segale, 42, of San Jose, formerly of Sacramento, was sentenced today to three years and nine months in prison for access device fraud and aggravated identity theft, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Segale used her employment at a veterinary clinic and her pet‑sitting work to obtain clients’ personal and financial information. She provided that information to Marie Antoinette Alcanter, 49, of Sacramento, who used it to make purchases and withdrawals using victims’ accounts, as well as to open new accounts using victims’ identities. One of the credit card numbers that Segale gave to Alcanter belonged to a client who used it to pay for euthanasia and cremation of a dog. Between December 2016 and March 2018, Alcanter obtained over $40,000 worth of items and cash using victims’ identities some of which she provided to Segale.

This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Miriam R. Hinman and Mira Chernick prosecuted the case.

On Sept. 24, 2020, Alcanter was sentenced to four and a half years in prison.

SACRAMENTO, Calif. — Jaziz Jesahias Cea, 23, formerly of Galt, pleaded guilty today to transportation of child pornography and receipt of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Cea used internet communications platforms and social media to commit the offenses. In particular, on May 13, 2018, Cea uploaded to his YouTube channel child pornography videos showing prepubescent girls being abused by adult males. Cea also separately used his Skype account to receive child pornography videos depicting prepubescent minor females being sexually exploited, to share links to such material, and to communicate with others about his interest in sexually exploiting children.

Between September 2017 and July 2018, Cea was a member of the California National Guard serving on active duty with the United States Army in Qatar. He was discharged from the California National Guard on July 23, 2020, under other than honorable conditions.

This case is the product of an investigation by the Federal Bureau of Investigation, the Sacramento County Sheriff’s Office, the Sacramento Internet Crimes Against Children (ICAC) Task Force, and the Galt Police Department. Assistant U.S. Attorneys Rosanne Rust and Christina McCall are prosecuting the case.

Cea is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on July 22. The two counts to which Cea pleaded guilty carry a mandatory minimum five-year prison sentence, a maximum sentence of 20 years in prison, and a fine of up to $250,000 for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

FRESNO, Calif. — A federal grand jury indicted three Madera residents today, charging Emilio Hernandez Yesca, 27; Jorge Perez, 24; and Jorge Luis Hernandez Gonzalez, 30, with trafficking fentanyl and methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.

An associate of the trafficking ring, Eli Quiroz Hernandez, 26, also of Madera, was indicted in a related case on April 1.

According to court documents, the charges arose out of a months-long investigation into a drug trafficking organization. At the center of the organization were Hernandez and Perez. Between October 2020 and March 2021, the two conspired to distribute thousands of fentanyl pills and pounds of methamphetamine. As part of their plan, they sold 1,400 fentanyl pills in two separate drug deals in October and November 2020. Then, in February 2021, they sold a pound of methamphetamine. On March 2, law enforcement stopped the drug-dealing partners in a vehicle on their way to deliver 5,000 fentanyl pills and 3 pounds of methamphetamine. A loaded firearm was found under the driver’s seat of the car. The two other defendants are charged with selling methamphetamine: Eli Quiroz Hernandez sold a quarter pound of methamphetamine on December 10, 2020, and Jorge Gonzalez distributed a pound of methamphetamine in February 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, Perez, Hernandez and Gonzalez 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. Eli Quiroz Hernandez faces a statutory mandatory minimum penalty of five years in prison up to 40 years in prison, and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the 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. — Mariposa County resident John “Jack” Welch has agreed to pay $950,000 to settle a claim by the United States against him for damages resulting from a 2016 wildfire that burned nearly 100 acres of National Forest land, Acting U.S. Attorney Phillip A. Talbert announced today.

According to the settlement, federal investigators concluded that Welch ignited the fire, known as the “Old Fire,” on Sept. 13, 2016, while using an excessively worn chainsaw on his property in a high fire hazard area located off Old Yosemite Road in Mariposa County. It was a windy day and the fire spread quickly, burning approximately 100 acres, including 95 acres of land within the Stanislaus National Forest.

The USDA Forest Service spent nearly $1.3 million to extinguish the Old Fire, including the use of substantial air assets to prevent the fire’s spread to neighboring properties and the surrounding National Forest lands.

“Over the past several years, the people of the Eastern District have endured more than their fair share of wildfires.” said Acting U.S. Attorney Talbert. “This Office has been, and continues to be, focused on holding those individuals and corporations who negligently start these fires accountable. We will continue to pursue individuals and corporations, large and small, to recover the fire suppression costs and environmental damages caused by their negligent acts.”

“Our region is thankful that this settlement was reached between all parties to help restore damage to the landscape in Stanislaus National Forest,” said Regional Forester Randy Moore, USDA Forest Service Region 5. “Furthermore, these recovered costs help fund continued firefighting resources to help keep our forest communities safe.”

The settlement is not an admission of any negligence, wrongful conduct or liability.

Since 2012, the U.S. Attorney’s Office for the Eastern District of California has secured settlements in more than 30 different cases involving wildfire damage to federal lands, with total settlements valued at more than $300 million.

The investigation was conducted with the U.S. Forest Service. Assistant U.S. Attorney Geoffrey D. Wilson handled the case.

FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Luis Armando Romero Jr., 20, of Turlock, charging him with distribution of methamphetamine.

Acting U.S. Attorney Phillip A. Talbert and Drug Enforcement Administration Special Agent in Charge Wade R. Shannon made the announcement with the California Department of Justice.

According to court documents, on Jan. 28, in Merced County, Romero sold approximately 1 kilogram of a mixture containing methamphetamine. Subsequently, on April 6, law enforcement officers executed a search warrant at Romero’s residence in Huntington Beach and found approximately 280 pounds (127 kilograms) of methamphetamine, 55 pounds (25 kilograms) of cocaine, 20 pounds (9 kilograms) of fentanyl pills, 6.6 pounds (3 kilograms) of fentanyl powder, and 2 pounds (907 grams) of heroin. Agents also seized more than $73,000 in cash.

This case is the product of an investigation by the Drug Enforcement Administration, the California Department of Justice, the Merced Area Gang and Narcotic Enforcement Team, the Merced County Sheriff’s Office, and the Los Angeles County Sheriff’s Office. Assistant U.S. Attorneys Antonio J. Pataca and Kathleen Servatius are prosecuting the case.

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

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Austreberto Santamaria-Valencia, 25, of Red Bluff, charging him with possession with intent to distribute fentanyl and being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Feb. 6, law enforcement officers responded to a report of a suspected overdose by a motel guest in Red Bluff. When officers entered the room, they found Santamaria-Valencia sitting in a chair, unconscious but breathing. On the bed near him, officers saw multiple plastic bags containing what appeared to be blue pills, of the type sold as counterfeit oxycodone pills, but which often contain fentanyl. Officers were able to wake Santamaria-Valencia. In response to their questions, Santamaria-Valencia indicated that he had taken fentanyl. Medical personnel tended to Santamaria-Valencia and confirmed he was not in danger of overdosing. A records check indicated that Santamaria-Valencia had a warrant out for his arrest, and officers arrested him at that time.

Pursuant to an authorized search warrant, after Santamaria-Valencia had been taken to the Tehama County Jail, officers searched Santamaria-Valencia’s room and car and seized approximately 1,000 counterfeit M-30 Oxycodone pills, a loaded Taurus G3C 9 mm semi-automatic pistol, two bottles containing a total of 170 Farmapram (Alprazolam-Xanax) pills, five packets of suboxone strips, 90 grams of marijuana, approximately $7,000 in cash, and other items commonly used in street sales of narcotics.

This case is the product of an investigation by Homeland Security Investigations, the Red Bluff Police Department, the Tehama County Major Crimes Unit, and the Tehama County District Attorney’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.

If convicted, Santamaria-Valencia faces a maximum statutory penalty of 20 years in prison and a $1 million fine for the charge of possession with intent to distribute fentanyl. If convicted for being a felon in possession of a firearm, he faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

SACRAMENTO, Calif. — Liana Karapetyan, 41, of El Dorado Hills, 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, Karapetyan and another individual 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, Karapetyan and another individual 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, Karapetyan and another individual 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, 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 at least over $2 million for services purportedly provided to beneficiaries 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 Department of Health and Human Services’ Office of Inspector General. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.

U.S. District Judge Troy L. Nunley is scheduled to sentence Karapetyan on Aug. 26. Karapetyan 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. She 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, Eby, Jai Vijay, Anita Vijay, and Panganiban pleaded guilty for their roles in the kickback scheme. They await sentencing.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Parampreet Singh, 55, of Davis; Ranvir Singh, 38, of Sacramento; and Amandeep Multani, 33, of Roseville, charging them with conspiracy to distribute and possess with intent to distribute at least 5 kilograms of cocaine, at least 1 kilogram of a mixture containing heroin, opium, and ketamine, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, no later than August 2020, an investigation began into a drug trafficking organization that was based in Sacramento and extended to the greater Toronto Area in Canada. Parampreet Singh, Ranvir Singh and Multani allegedly were facilitating the trafficking of cocaine, heroin, opium, and ketamine across international borders. Between October 2020 and March 2021, the defendants arranged multiple kilogram-level drug deals with a Canadian undercover officer using encrypted applications on their cellphones.

This case is the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the York Regional Police in Canada, the Royal Canadian Mounted Police, and the Placer County Special Investigations Unit. Assistant U.S. Attorney David W. Spencer is prosecuting the case.

Parampreet Singh was ordered to be released upon posting a $6 million secured bond. Ranvir Singh was ordered to be released upon posting a $700,000 secured bond. Amandeep Multani was ordered detained pending trial.

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

SACRAMENTO, Calif. — Sandeep S. Walia, M.D., a Professional Medical Corporation (Walia PMC), and Sandeep S. Walia, M.D., the corporation’s owner and president, have agreed to pay a combined $70,000 in damages and penalties to resolve allegations that they knowingly made a false statement to obtain a loan under the Paycheck Protection Program (PPP) of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Acting U.S. Attorney Phillip A. Talbert announced today.

As part of the settlement, Walia PMC also agreed to repay the $430,000 PPP loan that it obtained because of the false statement, with interest.

The CARES Act was enacted on March 29, 2020, to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion, and in December 2020, Congress authorized nearly $285 billion in additional PPP funding.

During the first round of the PPP, no eligible borrower was permitted to receive more than one PPP loan. The SBA determined this limitation was necessary to help ensure that as many eligible borrowers as possible could obtain a PPP loan. This helped advance Congress’s goal of keeping workers employed and paid across the United States in 2020.

The settlement resolves allegations that Dr. Walia falsely certified to a PPP lender that his medical practice had not received a PPP loan after it had already received one for approximately $280,000 from a different lender. As a result, Walia PMC obtained a second PPP loan for $430,000, to which it was not entitled. Walia PMC did not seek forgiveness for the $430,000 loan, but its false statement caused a false claim to be made to the SBA for processing fees. This settlement resolves allegations that Walia and Walia PMC’s conduct violated the False Claims Act, which allows the government to recover damages and penalties for the presentation of false claims for payment to the United States. Walia and Walia PMC cooperated fully with the investigation.

“The second PPP loan should have been disbursed to another small business suffering financially during the COVID-19 pandemic,” said Acting U.S. Attorney Talbert. “The Department of Justice and our partners at the SBA will use all of the tools at our disposal, including civil fraud statutes, to recover funds for federal programs intended to help those in need during this national emergency.”

“It is unacceptable to fraudulently attempt to gain access to a program aimed at assisting small businesses that are struggling to survive for personal gain and profit,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”

Assistant U.S. Attorney Matthew R. Belz handled the case for the United States. The investigation was conducted with the U.S. Small Business Administration, Office of Inspector General.

SACRAMENTO, Calif. — Andrea M. Gervais, 44, of Roseville, pleaded guilty today to theft of government money in a scheme involving 97 fraudulent Pandemic Unemployment Assistance (PUA) claims in the names of persons other than her own, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, at least 10 of 97 fraudulent PUA claims were processed for payment, and nearly $200,000 in unemployment insurance and PUA benefits were paid out to Gervais’s Roseville address in the form of Bank of America debit cards. The potential value of all fraudulent 97 claims associated with the scheme exceeded $2 million.

The investigation began when federal agents discovered that someone had filed a PUA claim using the identity of a sitting U.S. senator for approximately $21,000. This fraudulent claim was processed for payment, and Gervais received an EDD debit card in the senator’s name. Agents further discovered that Bank of America ATM cameras captured Gervais on multiple occasions withdrawing cash from at least seven of the EDD debit cards, and at least one captured transaction showed Gervais using the debit card issued to the senator.

“Gervais defrauded California’s unemployment system by fraudulently collecting nearly $200,000 in Pandemic Unemployment Assistance. Her conduct further exacerbated the distribution of unemployment benefits at a time when so many Americans are in desperate need of this assistance. We will continue to work with our law enforcement partners to protect the integrity of DOL programs,” said Quentin Heiden, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.

This case is the product of an investigation by the U.S. Department of Labor – Office of the Inspector General, the Federal Bureau of Investigation, and the California Employment Development Department – Investigation Division. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.

Gervais remains on pretrial release as she awaits sentencing.  She is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Aug. 9. Gervais 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.

FRESNO, Calif. — Georgia Nicole Dean, 37, of Coarsegold, was sentenced today by U.S. District Judge Dale A. Drozd to 12 years in prison for distributing heroin, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Aug. 22, 2019, Dean drove to the victim’s residence and sold heroin to him for a small amount of cash. The victim used the heroin that night, overdosed, and died. Dean pleaded guilty to distribution of heroin on Jan. 26, 2021.

This case was the product of an investigation by the Drug Enforcement Administration, the Madera County Sheriff’s Office, and the Fresno Police Department. Assistant U.S. Attorneys Justin J. Gilio and Kathleen A. Servatius prosecuted the case.

FRESNO, Calif. — Eleuterio Rosario Martinez, 49, of Porterville, was sentenced today by U.S. District Judge Dale A. Drozd to 42 months in prison, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, an investigation into drug trafficking primarily in the Tulare County area led to the arrest and indictment of Martinez and 10 others for a conspiracy to distribute methamphetamine between June 7, 2018, and Jan. 19, 2019. Martinez delivered the methamphetamine for the conspiracy. During a one-month period of the conspiracy, Martinez made approximately 258 deliveries of methamphetamine at the direction of co-defendant Manuel Delgado-Montenegro, 48, of Porterville. The deliveries were in quantities of 1 ounce or less and totaled at least 3.7 pounds of methamphetamine.

On Oct. 29, 2020, Hector Antonio Ochoa Ruiz, 39, of Strathmore, pleaded guilty to his participation in the conspiracy and was sentenced on Feb. 19 to seven and a half years in prison. Charges are pending against Delgado-Montenegro and the other eight defendants. If convicted, the defendants face a maximum penalty of life in prison and a fine of up to $10 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the Drug Enforcement Administration with assistance from the Porterville Police Department. Assistant U.S. Attorneys Kathleen A. Servatius and Katherine E. Schuh are prosecuting the case.

SACRAMENTO, Calif. — Celeste Pang, 42, of Olivehurst, was sentenced today by U.S. District Judge Morrison C. England Jr. to six months in prison and a $2,000 fine for embezzlement of mail by postal employee, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Pang, a postal employee at the West Sacramento post office, identified what she believed to be drug parcels and rerouted them to her personal residence. For over a year and a half, Pang stole parcels from the post office by replacing the original tracking label with an insured tracking label and replacing the original address label with a label bearing her home address. Agents intercepted one of the stolen packages before it reached Pang’s residence. That package contained 10 pounds of marijuana.

This case was the product of an investigation by the U.S. Postal Service Office of Inspector General. Assistant U.S. Attorney Cameron L. Desmond prosecuted the case.

SACRAMENTO, Calif. —Marilyn Cook (aka Marilyn Powell and Marilyn Sunset), 58, of Alcoa, Tennessee, pleaded guilty today to one count of mail fraud in relation to a scheme to obtain 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 name Marilyn Sunset, committed a scheme to defraud by filing false claims with the Division of Unclaimed Property for properties belonging to the U.S. Marshal Service and others. These properties were being held pursuant to a California law that requires financial institutions, businesses, and other entities, to turnover financial assets to the State Controller’s Office when an account has been inactive or there has been no contact with the property owner for a specified period of time. The properties are then safeguarded until they are returned to their rightful owner. The Unclaimed Property Division maintains a list of properties in their possession on a publicly available website and provides instructions on how to claim such properties.

In furtherance of the scheme, Cook identified properties belonging to others, including the U.S. Marshal Service, and falsely certified under penalty of perjury that she was entitled to claim the identified properties. Cook also used a Tennessee ID card that she obtained in the name Marilyn Sunset to have certain claim forms notarized, as was required by the Unclaimed Property Division for claims over a certain dollar amount. Finally, Cook submitted fictitious documents in support of her claims to show that she was authorized to claim the properties. These documents included 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. Marshal Service. 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 is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.

Cook is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on July 15. Cook faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual 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.

SACRAMENTO, Calif. — Derek Bluford, 34, of Sacramento, was sentenced today to seven years in prison for wire fraud, money laundering, obstruction of a federal investigation, and making false statements, Acting U.S. Attorney Phillip A. Talbert  announced.

According to court documents, Bluford told a couple that he was an attorney and could represent them in a dispute they were having with their tenant. After the couple agreed, Bluford then told them that they had incurred numerous fines and court costs, as well as costs to repair their rental unit; he also told them he had negotiated a settlement agreement with the couple’s former tenant. Based on these representations, the couple paid Bluford over $500,000. Bluford, in fact, was not an attorney, and there were no fines or court costs imposed. Bluford laundered the proceeds from his scheme, obstructed a federal investigation, and made false statements to the FBI regarding the investigation.

This case was the product of an investigation by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Michael D. Anderson and Christopher S. Hales prosecuted the case.

FRESNO, Calif. — Jason Vertz, 51, of Fresno, and Alana Powers, 45, an inmate at the Central California Women’s Facility (CCWF) in Chowchilla, each pleaded guilty today to one count of conspiracy to commit mail fraud and one count of aggravated identity theft in a scheme that targeted California Employment Development Department (EDD) unemployment insurance benefits that were intended for Californians hit hardest by the ongoing COVID-19 pandemic shutdown, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Vertz and Powers submitted several fraudulent unemployment insurance claims in Powers’ and other CCWF inmates’ names to EDD. Recorded jail calls and emails show that Powers and other inmates provided names, dates of birth, and social security numbers for inmates at CCWF to Vertz to submit the fraudulent claims. Shortly thereafter, the benefits were loaded onto debit cards that were mailed to the addresses the defendants provided.

The underlying applications for the claims stated that the inmates had worked within the prescribed period as maids, cleaners, fabrication welders, and other occupations, and that they were available to work, which was not true because they were incarcerated. The claims would have been denied if accurate answers had been given. EDD and the United States have suffered an actual loss of over $103,000 as a result of the fraud.

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

Vertz and Powers are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on July 6. For the count of conspiracy to commit mail fraud, Vertz and Powers face a maximum statutory penalty of 20 years in prison and a $250,000 fine. For the count of aggravated identity theft, they face a mandatory two-year sentence consecutive to any other sentence. 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.

SACRAMENTO, Calif. — Lucious James Roy, 34, of Stockton, was sentenced today by U.S. District Judge Kimberly J. Mueller to 17 years and seven months in prison for conspiracy to engage in sex trafficking of a child, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, between September 2018 and November 2018, Roy recruited a 17‑year-old and a 16-year-old to engage in prostitution. Roy recruited the 17-year-old victim outside of a high school, and he used a social media platform to recruit the 16-year-old victim. Roy then groomed the victims to perform sex acts in exchange for money that he kept. He also used threats of violence to try to control them.

According to court documents, Roy and his co-conspirator, Dawniel Santangelo, 43, of Stockton, created online prostitution advertisements for the victims and drove them to motels across Northern California, including Stockton, Salinas, Oakland, and Ripon, where they had sex with strangers in exchange for money.

On May 10, 2019, Roy and Santangelo were arrested in Jackson County, Oregon, for state prostitution and sex trafficking offenses after police found them in a hotel room with a 15-year-old runaway from Modesto. At that time, the San Joaquin District Attorney’s Office had an open investigation into the defendants for sex trafficking the two other minors. Both the Jackson County District Attorney and the San Joaquin District Attorney dismissed their cases in favor of federal prosecution.

“Today’s sentence is necessary due to the defendant’s long criminal history and to protect the public from future crimes,” Acting U.S. Attorney Talbert said. “He used intimidation and threats to keep his victims compliant and afraid to seek help. His willingness and ability to recruit children and coerce them to engage in prostitution for his financial benefit puts the public in danger.”

“No person, let alone a minor, should be treated as a commodity to be transported and sold again and again,” stated Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office. “Every day, the FBI works collaboratively with its law enforcement partners to ensure traffickers face justice and victims can break free from a cycle of abuse and exploitation.”

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

Charges are pending against Santangelo. She is scheduled for trial on July 27. If convicted, she faces a mandatory minimum sentence of 10 years in prison and a maximum statutory penalty of life in prison, and 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 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. — A federal grand jury returned a five-count indictment today against Calvin James Smith, 33, and Marques Julius Johnson, 39, of Sacramento, Acting U.S. Attorney Phillip A. Talbert announced.

Johnson and Smith are charged with possession with the intent to distribute at least 500 grams of methamphetamine. Smith is also charged with possession of ammunition after being convicted of a domestic violence offense, and Johnson is charged with three additional counts of distribution of methamphetamine.

According to court documents, undercover operatives conducted multiple purchases of counterfeit MDMA tablets containing methamphetamine from Johnson in Vallejo and Sacramento. On Dec. 9, 2020, Johnson and Smith were arrested together during an undercover purchase in Vallejo and found to be in possession of 6,000 methamphetamine tablets and a loaded pistol. Smith was also found carrying an AR-15 rifle that was loaded with a high-capacity magazine.

This case is the product of an investigation by the Drug Enforcement Administration with assistance from Homeland Security Investigations, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Vallejo Police Department. Assistant U.S. Attorney Alexis Nelsen is prosecuting the case.

If convicted, Johnson and Smith face a mandatory minimum of 10 years and up to 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.

FRESNO, Calif. — Arman Mkhitaryan, 33, of Glendale, arraigned today on a 33-count indictment charging him with bank fraud and credit card fraud, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Mkhitaryan installed credit card skimming devices at Fresno area gas stations and stole individuals’ credit card information. He then used that information to create counterfeit credit cards and purchase more than $160,000 in postage stamps via self-service kiosks at U.S. Post Offices.

This case is the product of an investigation by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Vincente Tennerelli and Joseph Barton are prosecuting the case.

If convicted of bank fraud, Mkhitaryan faces a maximum penalty of 30 years in prison and a fine of up to $1 million. If convicted of the credit card fraud, Mkhitaryan faces a maximum penalty of 10 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Health Net Federal Services LLC has paid $97,237,391 to resolve duplicate and inflated claims submitted to the Department of Veterans Affairs, Acting U.S. Attorney Phillip A. Talbert announced.

In 2013, Health Net entered a $5.05 billion contract with the VA under the Patient-Centered Community Care program, which offered private health care to veterans when VA facilities could not do so in a timely manner. The Veterans Access, Choice and Accountability Act of 2014 expanded the services to cover veterans who waited more than 30 days for care or lived more than 40 miles away from a VA medical facility. Under this contract, Health Net served as the third-party administrator that secured private health care for veterans, reimbursed these providers for services to veterans, and in turn billed the VA for the services.

In 2017, the VA Office of Inspector General (VA OIG) audited Health Net and found evidence suggesting the company had billed the VA for duplicate claims amounting to approximately $30 million and failed to reduce billings to the VA for approximately $1 million in provider rate savings, as contractually required. The ensuing investigation confirmed the conduct, and Health Net ultimately repaid $93,682,428 in overpayments, as well as $3,554,963 in interest.

“Providers must be held to the highest standard of care and must rigorously comply with their contractual obligations,” said Acting U.S. Attorney Talbert. “This office is committed to assisting the VA and other agencies of the United States to ensure the integrity of important federal programs, such as those reimbursed by this settlement that will help our veterans.”

“The VA Office of Inspector General is strongly committed to promoting fiscal accountability throughout VA,” said VA Inspector General Michael J. Missal. “This settlement will return funds to VA programs and services that directly benefit our nation’s veterans. I applaud the teamwork and dedication that led to this significant recovery.”

This settlement is the result of work by the U.S. Attorney’s Office for the Eastern District of California and the Civil Division’s Commercial Litigation Branch, with help from the Department of Veterans Affairs Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Catherine J. Swann handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.

SACRAMENTO, Calif. — A former resident of Union City was sentenced Thursday by U.S. District Judge Morrison C. England Jr. to 12 years and seven months in prison for a conspiracy to commit a bank fraud scheme that attempted to defraud financial institutions of more than $4.3 million, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, between July 2017 and February 2019, Monica Nunes, 41, conspired with Johnathon Ward and Talalima Toilolo to defraud financial institutions using a scheme that exploited the merchant refund process used by businesses and retail establishments to refund customers for returns, reimbursements, and erroneous charges.

The defendants committed this scheme by stealing or purchasing point-of-sale (POS) terminals used by businesses to process bankcard transactions. The defendants programmed each terminal to make it appear as if it was authorized by a particular retail merchant, connected the terminals to payment processing intermediaries, and executed refund transactions even though no purchases had been made. The payment processors, falsely believing the terminals were authorized, approved the refunds and caused the merchants’ payment processors to transfer funds to the defendants’ fraudulent accounts. The defendants then drained the stolen funds from the accounts and distributed them among members of the conspiracy.

Nunes has extensive experience with refund fraud and served as an organizer and manager over the conspiracy. She taught other members how to use POS terminals to defraud merchants and their banks. For example, in July 2017 while she was incarcerated, she mailed letters to co‑conspirators, teaching them how to use POS terminals to perpetrate the scheme and advising them to connect with one of the defendants.

Judge England also awarded over $1.7 million in restitution to victims of Nunes’s refund fraud. This amount reflected proceeds that the conspiracy was able to successfully withdraw from accounts that were funded by the fraudulent refunds.

This case is the product of an investigation by the Federal Bureau of Investigation and the Regional Enforcement Allied Computer Team (REACT) Task Force, which includes investigators from the Santa Clara County District Attorney’s Office. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.

On Feb. 11, 2021, Talalima Toilolo was sentenced to 10 years in prison for his participation in the scheme. In July 2020, the government filed a superseding indictment in this case charging Johnathon Ward with multiple counts of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. The superseding indictment also added Sabrina Toilolo who is the daughter of Talalima Toilolo. These new charges are still pending against Ward and Sabrina Toilolo. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Joel Jose Rueda, 28, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to 37 months in prison for illegally possessing a firearm after being convicted of a felony offense, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, on July 29, 2019, law enforcement officers conducted a traffic stop on a car that Rueda was driving. Because Rueda was on parole, the officers conducted a parole-compliance check and searched him and the car. Inside the engine compartment, behind the driver’s side headlight, officers located several rolled-up t-shirts concealing a loaded handgun with an obliterated serial number. Rueda is prohibited from possessing firearms because of multiple felony convictions for drug and firearm offenses. He was charged with one count of being a felon in possession of a firearm and pleaded guilty on Jan. 13, 2020.

This case was the product of an investigation by the Federal Bureau of Investigation, the Kerman Police Department, and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

FRESNO, Calif. — A two-count indictment was unsealed charging Nicholas Solis, 26, of Fresno, with possessing fentanyl with intent to distribute it and possessing a firearm in furtherance of a drug trafficking offense, Acting U.S. Attorney Phillip A. Talbert announced. 

According to unsealed court documents, on January 6, Solis illegally possessed fentanyl pills with intent to sell them as well as a firearm. 

This case is the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, and the Fentanyl Overdose Response Team. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.

If convicted, Solis faces a maximum statutory penalty of life in prison and a $1 million fine. The firearm charge carries a mandatory minimum and consecutive sentence of at least 5 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

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 two-count indictment was unsealed today charging Raymond Matthew Vance, 29, of Fresno, with two counts of being a felon in possession of a firearm, Acting United States Attorney Phillip A. Talbert announced. 

According to court documents, Vance was in possession of two firearms on February 4, 2020, and an additional firearm on February 6, 2020. Vance committed the offenses in Stanislaus County. Vance was previously convicted of being a felon in possession of a firearm in the Eastern District of California in 2019, and was serving a probationary sentence for that offense at the time that he possessed the firearms.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Turlock Police Department, the Modesto Police Department, the Tracy Police Department, the Stanislaus County Sheriff’s Office, and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Katherine E. Schuh is prosecuting the case.

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

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

FRESNO, Calif. — Conrado Virgen Mendoza, 37, a native and citizen of Mexico residing in Chowchilla, was sentenced today to 21 months in prison for conspiring with others to assist his brother in fleeing to Mexico to avoid prosecution for the murder of Newman Police Corporal Ronil Singh during a traffic stop and for possessing false immigration documents, Acting U.S. Attorney Phillip A. Talbert announced.

In September 2019, a jury found Conrado Virgen Mendoza guilty, along with Erik Quiroz Razo, 30, an illegal alien residing in Merced. The evidence at trial established that Virgen and Quiroz helped Paulo Virgen Mendoza conceal the truck that he was driving at the time he shot and killed Corporal Singh, transported him to various locations in the Central Valley in an effort to find a safe harbor with relatives before Paulo attempted to flee to Mexico. Conrado Virgen Mendoza lied to Stanislaus County Sheriff officers about Paulo Virgen Mendoza’s whereabouts. Paulo Virgen Mendoza was ultimately apprehended at a relative’s residence in Kern County following an intensive three-day manhunt.

Last November, Paulo Virgen Mendoza pleaded guilty to murdering Corporal Singh and was sentenced to life in prison without parole. Quiroz was previously sentenced to 27 months in federal prison.

This case was the product of an investigation by Homeland Security Investigations and the Stanislaus County Sheriff’s Office with assistance from the Immigration and Customs Enforcement, Enforcement and Removal Operations; the Central Valley High Intensity Drug Trafficking Area (HIDTA) task force; the Southern Tri-County HIDTA; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the California Highway Patrol; the California Department of Justice, the Sheriffs’ Offices for Kern, Merced, and Santa Cruz Counties; and the Police Departments for Merced, Turlock, Modesto, and Santa Cruz. Assistant U.S. Attorneys Karen A. Escobar, Laura D. Withers, and Michael G. Tierney prosecuted the case.

SACRAMENTO, Calif. — Owen Hughes, the sole proprietor of Eon Research Corporation in Davis, agreed to pay the United States $635,000 to resolve allegations that he knowingly submitted false statements to the National Institute of Environmental Health Sciences to secure Small Business Innovation Research grant funds, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, in 2007, Hughes applied for and received a Small Business Innovation Research grant to conduct environmental research, certifying that he had implemented financial safeguards to ensure the proper use of grant funds.

The settlement resolves allegations that despite his certifications, Hughes had no financial policies in place. As a result, Hughes could not substantiate how he had actually used the federal funds he received. The settlement also resolves claims that Hughes commingled grant funds in his personal accounts and then used the commingled funds for his aviation hobby, by paying aircraft hangar rental fees and buying aircraft parts.

“This settlement sends a clear message that recipients of federally funded grants must strictly adhere to the regulations applicable to those grants and fully account for their use of federal funds,” Acting U.S. Attorney Talbert said. “Recipients who fail to do so risk significant consequences.”

“Establishing required financial policies is a key component to proper accounting of SBIR grants. Therefore, it is imperative that individuals and entities implement sound policies to avoid mismanagement of these limited funds,” said Steven J. Ryan, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Working with our auditors and law enforcement partners, we will continue preserving the integrity of all our grant programs.”

“It is vital that agencies work together to hold grantees accountable for the use of taxpayer funds,” said Lori Pilcher, Regional Inspector General for Audit Services at the U.S. Department of Health and Human Services. “In this case, using forensic tools, our auditors identified suspicious grant disbursements and partnered closely with investigators and the United States Attorney’s Office throughout the investigation.”

The National Institute of Environmental Health Sciences is a component of the National Institutes of Health, which is itself a component of U.S. Department of Health and Human Services.

This case was the result of an investigation by the HHS Office of the Inspector General. Assistant U.S. Attorneys Colleen Kennedy, Rachel Muoio, and Steven Tennyson handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.

FRESNO, Calif. — Eight people were arrested in Kern County today following a months-long investigation into a Bakersfield-based drug trafficking organization that attempted to smuggle hundreds of pounds of methamphetamine and fentanyl, Acting U.S. Attorney Phillip A. Talbert announced. A ninth defendant is in custody in Chico, California.

The defendants are scheduled to make an initial appearance in Fresno before U.S. Magistrate Judge Jennifer L. Thurston on Monday, March 29, at 2:30 p.m.

Those charged in the federal criminal complaint unsealed today are: Omar Alberto Navarro, 38, of Arvin; David Delgado Gonzalez, 37, of Bakersfield; Amayrani Jared Arreguin, 24, of Bakersfield; Lizette Mendez, 31, of Delano; Mayra Guadalupe Galvan, 31, of Delano; Miguel Angel Martinez, 26, of Bakersfield; Randal Jason Newell, 41, of Bakersfield; Daniel Armendariz Mercado, 31, of Bakersfield, and James Scott Gordon, 47, of Chico.

According to court documents, Navarro oversaw the wide-ranging drug trafficking organization from Bakersfield. Mendez, Galvan, Newell, and others transported narcotics for the organization. Between September and December 2020, those drivers were intercepted by law enforcement who seized a total of more than 380 pounds of methamphetamine and more than eight pounds of fentanyl that were concealed in their vehicles. On Dec. 27, 2020, Martinez was stopped by law enforcement on Interstate 5 as he attempted to smuggle 18 pounds of methamphetamine from Bakersfield to Texas. Also in December 2020, Mercado and Gordon purchased large amounts of methamphetamine from other members of the drug trafficking organization with the intent to distribute the narcotics to customers.

“The success of this operation highlights the importance and necessity of law enforcement partnerships across the spectrum,” said Homeland Security Investigations NorCal Special Agent in Charge Tatum King. “Of particular importance, the significant quantity of narcotics seized by this HSI Bakersfield-led investigation ensured that the narcotics would not enter the drug distribution supply chain and inevitably harm the public. We are proud to be part of the team making our communities safer.”

This case is the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, the U.S. Marshals Service, the U.S. Postal Inspection Service, Customs and Border Protection, the Bureau of Alcohol, Firearms, Tobacco and Explosives, the Federal Bureau of Investigation, the U.S. Secret Service, the Bakersfield Police Department, the Kern County Sheriff’s Office, the Shafter Police Department, the Kern County Probation Department, the California Department of Corrections and Rehabilitation, the California Department of Motor Vehicles, and the California Highway Patrol. Assistant U.S. Attorneys Christopher D. Baker and Laura J. Berger are prosecuting the case.

If convicted of the charged offenses, each defendant faces 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.

FRESNO, Calif. — A federal grand jury returned an indictment today charging a Turlock man with being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Feb. 23, Doroteo Gonzales Jr., 25, was found in possession of a loaded handgun. Gonzales was previously convicted of several felonies and was on parole for robbery at the time of his arrest.

This case is the product of an investigation by the Bureau of Alcohol Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Modesto Police Department, the Turlock Police Department, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorney Katherine E. Schuh is prosecuting the case.

If convicted, Gonzales 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.

The case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Alfredo Garcia Jr., 27; Eva Romero, 53; and Leo Torres, 30, of Fresno, charging them with conspiring to distribute and possess with intent to distribute heroin and at least 5 grams of methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced. Torres and Romero were also charged with distribution of controlled substances.

According to court documents, between January 19 and January 26, 2021, Garcia, Romero, and Torres conspired to smuggle heroin and methamphetamine into the Fresno County Jail for further distribution among inmates. Investigators uncovered the plan by listening to recorded jail calls, including calls between inmate Garcia and his mother, Romero. The calls revealed that the trio planned to sneak the drugs into the jail inside a pair of athletic shoes destined for an inmate. Their plot was foiled, however, when law enforcement at the jail intercepted the shoes and found hidden compartments inside them concealing the heroin and methamphetamine.

This case is the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, the Fresno County Sheriff’s Office, the Fresno Police Department, and the Fresno County Jail. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.

If convicted, the defendants each face a mandatory minimum statutory penalty of five years in prison and a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

FRESNO, Calif. — A federal grand jury returned a three-count superseding indictment today against Steven Eric Cabrera, 25, of Fresno, adding one count of illegally possessing a machine gun and one count of being a felon in possession of ammunition to the original Feb. 11 indictment that charged him with one count of being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, in 2017, Cabrera was convicted of assaulting a person with a firearm, a felony that makes it illegal for him to possess firearms or ammunition. In May 2020, he possessed a firearm that was hidden wrapped in a towel in a bag inside a car. About nine months later, he possessed a handgun that had been converted into a machine gun and over 300 rounds of ammunition.

This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.

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

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

Acting U.S. Attorney Phillip A. Talbert and FBI Sacramento Field Office Special Agent in Charge Sean Ragan condemn racism, xenophobia, and intolerance against Asian Americans and Pacific Islanders and urge members of the community to report hate-based crimes and incidents to law enforcement. The Eastern District of California is one of the most diverse regions in the country, and federal law enforcement is committed to protecting our diverse communities.

“We stand together with the Asian American and Pacific Islander community during this difficult time. Acts of hate and racism have no place in our community and will not be tolerated,” said Acting U.S. Attorney Talbert. “We want to ensure that all those who call this region their home feel safe regardless of their race, ethnic origin, color, religion, gender, sexual orientation, or disability. Prosecuting hate crimes continues to be a top priority for our office and our law enforcement partners and our Hate Crimes Task Forces remain active. If you see something, please say something by contacting law enforcement so that we can do everything we can to help stop hate crime and protect the community.”

The United States Attorney’s Office has been in regular and ongoing contact with Asian American and Pacific Islander community leaders and our local and federal law enforcement partners regarding potential hate crimes directed at persons of Asian descent. Tonight, Acting U.S. Attorney Talbert will be joining other federal and local law enforcement leaders and elected representatives to speak at a town hall to address anti-Asian hate crimes. Acting U.S. Attorney Talbert also released a Public Service Announcement encouraging community members to report hate crimes and incidents: https://www.justice.gov/usao-edca/pr/acting-us-attorney-phil-talbert-offers-statement-support-asian-american-pacific.

“The FBI has been reaching out to and working with the API community to increase understanding of our role in investigating hate crime, encourage reporting of hate crimes, and continue to increase diversity and inclusion within our work force,” said Special Agent in Charge Ragan. “A criminal act committed against a person because of their ethnicity or national origin is a hate crime. Such investigations are a high priority for the FBI’s civil rights program because of the profound and lasting impact such acts have on entire communities. We affirm our commitment to thoroughly investigating the facts of alleged hate crimes and continue to work closely with our law enforcement partners and the U.S. Attorney’s Office to ensure offenders face justice.”

If you are a victim of a hate crime and are in immediate danger, call 911 first. Once you are safe, please also report the hate crime to the FBI by calling 916-746-7000. This FBI tip line offers language translation services in many languages spoken in our region, including Chinese, Korean, Tagalog, and Vietnamese. When calling, please provide basic information to help us investigate— the who, what, when, where, and why. If you wish, you can make your tip anonymously.

SACRAMENTO, Calif. — Scott Stephen Howard, 36, of Yuba City, pleaded guilty today to possession of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, on April 11, 2016, Howard knowingly possessed visual depictions of minors engaged in sexually explicit conduct.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Shea J. Kenny is prosecuting the case.

Howard is scheduled to be sentenced by U.S. District Judge John A. Mendez on June 29. Howard faces a maximum penalty of 10 years in prison as well as 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. — Patricia Castaneda, 37, of San Carlos, pleaded guilty today to federal program theft, and in a separate case, her brother Eric Castaneda, 36, of Redwood City, pleaded guilty to conspiracy to transport stolen property interstate, Acting U.S. Attorney Phillip A. Talbert announced.

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

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

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

U.S. District Judge Kimberly J. Mueller is scheduled to sentence Patricia Castaneda and Eric Castaneda on June 7. Patricia Castaneda faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Eric Castaneda faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentences, however, will be determined at the court’s discretion after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Cesar Larios-Ortega, 40, a Mexican national residing in Bakersfield, pleaded guilty today to conspiracy to distribute methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced. 

According to court documents, during two meetings in May 2019, Larios-Ortega and co‑defendant Rodolfo Cardenas-Lara, 43, also a Mexican national residing in Bakersfield, sold 12 pounds of methamphetamine to a customer at a negotiated price of $1,750 per pound.

This case is the product of an investigation by Homeland Security Investigations. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.

On Feb. 5, Cardenas-Lara pleaded guilty to the conspiracy and is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 7. Larios-Ortega is scheduled to be sentenced by Judge Drozd on June 11. The defendants face a mandatory minimum statutory penalty of at least 10 years in prison, a maximum term of life in prison, and a $10 million fine. 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.