Eastern District of California

FRESNO, Calif. — High-ranking Nuestra Familia prison gang member Salvador Castro Jr., 50, pleaded guilty today to conspiring to distribute and to possess with intent to distribute more than 500 grams of methamphetamine, U.S. Attorney McGregor W. Scott announced.

According to court documents, Castro used a contraband cellphone from inside Pleasant Valley State Prison in Fresno County to arrange for the formation of a new street gang regiment in Kings and Tulare Counties. According to the plea agreement, Castro was recorded on a wiretap conspiring with associates outside of prison to distribute cocaine and methamphetamine. Between May 5, 2019, and May 15, 2019, Castro coordinated the transportation of approximately 10 pounds of methamphetamine from the Sacramento area to a residence in Visalia. Castro arranged for co-conspirators outside of prison to protect the narcotics during transit, and when the drugs arrived in Visalia, Castro and his co-conspirators discussed plans to distribute the methamphetamine to buyers in the Central Valley.

The case is the result of an investigation by the Kings County Gang Task Force; the Special Operations Unit – a team of agents from the California Department of Justice and the California Highway Patrol; California Department of Corrections and Rehabilitation; the FBI; the Kings County District Attorney’s Office; and the Tulare County Sheriff’s Office. Assistant U.S. Attorneys Justin Gilio, Kate Schuh, and Kimberly Sanchez are prosecuting the case.

Castro faces a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case 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 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. — U.S. District Judge Dale A. Drozd sentenced Rudy Soto, 32, of Fresno, today to five and a half years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.

According to court documents, on May 7, 2019, Soto fled from police in a high speed chase, crashed into another vehicle, and threw a loaded gun with a round of ammunition in the chamber from the sunroof of his car. Police had recognized Soto and knew he was wanted on an active felony warrant. The pursuit and gun discovery followed. Soto was prohibited from possessing a firearm as a result of four felony convictions between 2009 and 2016 for corporal injury to a spouse or cohabitant and three for evading an officer.

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

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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 also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.

SACRAMENTO, Calif. — The first civil settlement to resolve allegations of fraud against the Paycheck Protection Program of the Coronavirus Aid, Relief, and Economic Security (CARES) Act has been entered into today by the Department of Justice, U.S. Attorney McGregor W. Scott announced.

SlideBelts Inc., an internet retail company and debtor in bankruptcy, and Brigham Taylor, the company’s president and CEO, have agreed to pay the United States a combined $100,000 in damages and penalties to resolve allegations that they committed fraud. SlideBelts also repaid the Paycheck Protection Program funds it received.

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 Paycheck Protection Program. In April 2020, Congress authorized over $300 billion, and in December 2020, Congress authorized nearly $285 billion in additional Paycheck Protection Program funding.

As part of the settlement, Taylor and SlideBelts admitted that they made false statements to federally insured banks that SlideBelts was not in bankruptcy in order to influence those banks to approve, and the Small Business Administration (SBA) to guarantee, a Paycheck Protection Program loan to SlideBelts. As a result of their false statements, SlideBelts received a Paycheck Protection Program loan for $350,000. Months later, in response to demands by the United States, SlideBelts returned the Paycheck Protection Program funds to the lender. Taylor and SlideBelts also admitted that their statements caused false claims to be made to the SBA in connection with the Paycheck Protection Program loan. This settlement resolves claims that Taylor’s and SlideBelts’ misconduct violated the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).

The False Claims Act allows the government to recover damages and penalties for the presentation of false claims for payment to the United States. FIRREA allows the government to impose civil penalties for violations of enumerated federal criminal statutes, including those that affect federally-insured financial institutions.

“The defendants made false statements to multiple banks in order to obtain a Paycheck Protection Program loan that should have been disbursed to an honest small business suffering financially from the economic effects of the COVID-19 pandemic,” said U.S. Attorney Scott. “The Department of Justice and our partners at the SBA will use all tools at our disposal, including civil fraud statutes, to aggressively pursue those who exploit federal programs intended to help those in need during this national emergency.”

“This is a critical time for our nation’s small businesses,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Greed has no place in SBA programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic’s challenges. 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 Office of the Inspector General for the United States Small Business Administration.

FRESNO, Calif. — Mario Alberto Rangel, 29, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to four years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.

According to court documents, on Oct. 22, 2019, law enforcement officers attempted to stop Rangel for a traffic violation, but he failed to yield. Moments later, Rangel crashed into another car, then exited his car and fled the scene on foot. Fresno Police officers eventually caught up to him and arrested him. The car that he abandoned was searched, and a loaded shotgun was found in the back seat. Rangel is prohibited from possessing firearms because of his prior criminal record, including a 2018 conviction for assault with a firearm on a person.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio 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.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.

SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment Thursday against Sabian Quesada, 22, of Sacramento, charging him with possession with intent to distribute at least 40 grams of fentanyl, U.S. Attorney McGregor W. Scott announced.

According to court documents, on Nov. 13, Quesada was found to be in possession of a significant number of counterfeit oxycodone hydrochloride pills containing fentanyl, a powerful synthetic opiate known to cause overdoses and death, even in small quantities.

This case is the product of an investigation by the Federal Bureau of Investigation, the Sacramento County Sheriff’s Office, and the Sacramento County District Attorney’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.

If convicted, Quesada faces a maximum statutory penalty of 40 years in prison and a $5 million fine. In addition, the crime with which he is charged carries a statutory mandatory minimum of five 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.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment Thursday against Michael Ray Pitre Jr., 35, of Vallejo, charging him with being a felon in possession of firearms, and possession of an unregistered short barrel rifle, U.S. Attorney McGregor W. Scott announced.

According to court documents, the execution of federal search warrants of Pitre’s person, residences, and vehicles led to the discovery of a non-serialized machine gun, a short barrel rifle, and a pistol. The machine gun, which was located in his truck, was loaded with a 60-round extended magazine and was placed on top of a bag containing a mask, additional extended magazines and ammunition, and two tracking devices.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Oakland Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

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

This case is 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 also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.

FRESNO, Calif. —David Vann, 29, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to nine years and two months in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced. 

According to court documents, Vann failed to yield to police officers during an attempted traffic stop. He then led officers on a vehicle chase, during which he failed to stop at a stop sign and stop light, and drove southbound in the northbound lane of traffic. After exiting the vehicle, Vann discarded a firearm in bushes in a residential area. Vann is a convicted felon prohibited from possessing a firearm. He was on post-release community supervision at the time of his arrest in this case.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant U.S. Attorney Katherine Schuh 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.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.

SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott announces outcomes in Operation PEACE, an initiative launched in Vallejo in August 2020 in response to the increased number of homicides, non-fatal shootings and other violent crimes in Vallejo. By late August 2020, the city had recorded 19 homicides, as well as a significant uptick in shootings and other violent crimes.

Beginning in September 2020, the Vallejo Police Department expanded the reach of Operation PEACE through a partnership formed between the Vallejo Police Department, the Solano County District Attorney’s Office, and the U.S. Attorney’s Office, the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and Homeland Security Investigations (HSI).

Operation PEACE leverages the strength of these federal and local law enforcement agencies by focusing enforcement operations on violent criminals, including those responsible for murders and shootings, and targets involved in drug trafficking and firearms trafficking.

“Operation PEACE has successfully taken armed, violent criminals off the streets of Vallejo,” U.S. Attorney Scott said. “These successes will continue as the partnership between federal and local law enforcement agencies continue and bring about a safer Vallejo.”

“We must all remember that behind the statistics are real people experiencing real trauma,” Vallejo Chief of Police Shawny Williams stated. “Our community needs and deserves our compassion, service and commitment during times of difficulty and we are hopeful that Operation PEACE will help us achieve that goal.”

“Drug traffickers often use violence, fear and intimidation as tactics. They have little regard for human life or the communities in which they live. They profit off the pain and suffering of people,” stated DEA Special Agent in Charge Daniel C. Comeaux. “Spikes in violent crime require a swift, calculated, and intel-driven law enforcement response like this one. We will continue to collaborate with our law enforcement partners to ensure the health and safety of the community.”

“I am truly grateful for the assistance and cooperation of all the local and federal law enforcement partners who remain committed to reducing the gun violence throughout our community,” said District Attorney Krishna Abrams.

“The FBI and our Solano County Violent Crime Task Force affirmed our commitment to the region by surging resources to support Operation PEACE in Vallejo and the urgent need to reduce violent crime in the community. Together, with our task force officers from the Vallejo Police Department, California Highway Patrol, Solano County Sheriff’s Office, Benicia Police Department, Fairfield Police Department, and Vacaville Police Department, our investigative and analytic teams have dedicated more than 3,200 service hours to ensure the success of our collaborative local, state, and federal efforts to reduce violent crime in Vallejo,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Every family should have the opportunity to live, work, and play without fear, and we ask the community to join us in our stand against violence. You can make a difference. If you have information about crime in your community, call our tip line or submit information online to help ensure a safe environment in all of our neighborhoods.”

“The U.S. Marshals Service task force committed over 40 officers for this operation to help relieve the fear and violence of those who live in the City of Vallejo,” U.S. Marshal Lasha Boyden said. “As a result of teamwork and partnership, we were able to track and apprehend some of Vallejo’s most violent offenders.”

“Operation PEACE was a multi-agency law enforcement investigation related to the ongoing violent criminal activity in the city of Vallejo,” said Special Agent in Charge Patrick Gorman, San Francisco Field Division, ATF. “Protecting the public is at the forefront of ATF’s mission, and while working side by side with our partners, ATF focused on our central role in combatting gun violence. Together, the law enforcement agencies involved in this investigation leveraged our resources and specialties to reduce the illegal use and possession of firearms, as well as the illegal distribution of narcotics in the Vallejo area. ATF and our law enforcement partners have made a tremendous effort to make the city of Vallejo a safer community, and we remain committed in doing our part to disrupt the shooting cycle by identifying, investigating, and prosecuting violent criminals and the sources of their crime guns, and remove them from our communities. ”

“HSI agents were highly focused on stopping these criminals’ lawless reign of shootings, narcotics trafficking and a number of other illegal activities. The success of this case was made possible through the partnership of HSI with the Vallejo Police Department, FBI, ATF, DEA, the U.S. Marshals Service, the U.S. Attorney’s Office and the Solano County District Attorney. We look forward to continuing our valuable partnership, as we combat modern slavery known as human trafficking, gang violence, and a host of other criminal activities that have no place in Northern California,” said HSI NorCal Special Agent in Charge Tatum King.

In the first phase of Operation PEACE, during the week of Sept. 21–25, the Marshals Service and Vallejo Police Department apprehended 25 fugitives who were violent offenders with outstanding state and federal arrest warrants, including fugitives wanted for lewd and lascivious acts on a minor and resisting arrest.

In the second phase of Operation PEACE, the DEA spearheaded an effort to target violent offenders engaged in large-scale drug trafficking within Vallejo and suppliers outside of Vallejo. Using confidential informants and undercover agents, the Operation PEACE teams conducted over 12 controlled drug purchases, which led to multiple search and arrests operations. These efforts led to the federal prosecution the following:

Michael Williams, 58, and Clarence Courtney, 55, both of Vallejo, were charged with conspiracy to distribute heroin and methamphetamine, distribution of heroin, distribution of methamphetamine, and possession with the intent to distribute methamphetamine. Courtney is also charged with being a felon in possession of a firearm. Because Courtney has four prior drug trafficking felony convictions, he is prohibited from possessing a firearm. According to court documents, Williams sold an undercover agent over 2 pounds of crystal methamphetamine and over 1 ounce (32 grams) of heroin between September and November 2020. Courtney sourced the methamphetamine and heroin to Williams. On Dec. 3, agents arrested Williams and Courtney and found them to be in possession of over 3 pounds of methamphetamine. Agents later found a ghost-gun assault rifle, a handgun, and over 100 rounds of ammunition in Courtney’s residence. Williams also has an extensive criminal history, with seven prior felonies for drug trafficking, theft, and burglary.

Darren Tramaine Tony Mitchell, 30, and Ronald John Garnes, 42, both of Vallejo, were charged with conspiracy to manufacture, distribute, and possess with the intent to distribute methamphetamine. Mitchell was also charged with being a felon in possession of a firearm. Mitchell, who has seven prior felony convictions for drug trafficking, burglary, and firearms offenses, is prohibited from possessing a firearm. When agents searched the residence where Mitchell and Garnes both lived, they found an active methamphetamine tablet manufacturing operation that included a pill press, pill binding materials, manufacturing equipment, and thousands of methamphetamine tablets shaped like superheroes. They also found an assault rifle and a handgun in the dishwasher in the kitchen. Garnes also has an extensive criminal history, with five prior felony convictions. He had recently been released from prison after a conviction for attempted murder.

Marques Julius Johnson, 39, of Sacramento, and Calvin James Smith, 32, were charged in criminal complaints with distribution and possession with intent to distribute methamphetamine. Johnson was also charged with conspiracy to distribute methamphetamine. According to court documents, undercover operatives conducted multiple purchases of counterfeit MDMA tablets containing methamphetamine from Johnson in Vallejo. On Dec. 9, 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, loaded with a high capacity magazine.

The above cases are the product of investigations by DEA Sacramento with assistance from HSI, FBI, ATF, and the Vallejo Police Department. Assistant U.S. Attorney Cameron Desmond is prosecuting the cases against Courtney and Mitchell, Assistant U.S. Attorney Alexis Nelsen is prosecuting the case against Johnson.

Brian Earl Turner, 32, of Vallejo, was charged with being a felon in possession of a firearm. According to court documents, on Sept. 16, Turner possessed a Glock 27, .40‑caliber handgun. Turner has been convicted of assault on a person with a semi‑automatic firearm and is prohibited from possessing a firearm.

Lamonte Eshawn Percoats, 33, of Vallejo, was charged with possession with intent to distribute heroin, being a felon in possession of a firearm, and possessing a firearm in furtherance of a drug trafficking crime. According to court documents, on Sept. 29, Percoats possessed a Taurus 9 mm, and at least 100 grams of heroin. Percoats has been convicted of four prior convictions: possession of a controlled substance while armed, assault with a deadly weapon (not a firearm), being a felon in possession of a firearm, and an assault with a deadly weapon. These prior convictions prohibit Percoats from possessing a firearm.

The cases against Turner and Percoats are the product of investigations by the Solano County Violent Crime Task Force, which includes the following law enforcement partnerships: Vallejo Police Department, Vacaville Police Department, Fairfield Police Department, California Department of Corrections and Rehabilitation, Solano County Sheriff’s Office, California Highway Patrol, Benicia Police Department and the FBI. Assistant U.S. Attorney Jill Thomas is prosecuting both cases.

The charges are only allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

During these investigations, Operation PEACE partners took multiple dangerous high-capacity firearms and drugs off the street.

The Solano County District Attorney’s Office continues to work with the Operation PEACE Partners for local prosecutions of violent offenders and is coordinating with the U.S. Attorney’s Office regarding the federal adoption of certain cases.

Phase two of Operation PEACE is ongoing and will continue to target violent subjects committing crimes in Vallejo until the violence stops. Some of these efforts include complex, long-term investigations that are likely to result in future state and federal prosecutions of violent individuals. Operation PEACE will continue to hold those responsible for violence in our community through enforcement and prosecutions in effort to break the cycle of violence.

SACRAMENTO, Calif. — Hundreds of thousands of dollars have been fraudulently taken in two separate schemes that targeted California Employment Development Department (EDD) unemployment insurance benefits that were intended for Californians hit hardest by the ongoing COVID-19 pandemic shutdown, U.S. Attorney McGregor W. Scott announced.

The benefits involved billions of dollars in federal subsidies that have been significantly increased through the Pandemic Unemployment Assistance (PUA) program of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

“The U.S. Attorney’s Office is committed to the mission of combatting fraud that abuses the provisions of the CARES Act,” said U.S. Attorney Scott. “We will work with every major law enforcement agency to investigate and prosecute the fraud arising out of the pandemic. This theft of taxpayer dollars intended to assist our citizens in a very difficult economic time simply will not be tolerated.”

“Today’s charges demonstrate the Office of Inspector General’s commitment to combating fraud against the unemployment insurance program, which has become increasingly prevalent amid the pandemic. We will continue to work with our law enforcement and state workforce agency partners to pursue individuals who seek to undermine the integrity of the unemployment insurance program,” said Quentin Heiden, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.

“The FBI’s long-standing partnership with our local, state, and federal law enforcement partners aid our collective efforts to swiftly identify and aggressively investigate instances of government benefit fraud,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Unemployment benefits are intended to support individuals and families who are in crisis due to the economic impact of the COVID-19 pandemic, not be illegally diverted by fraudsters who surreptitiously steal the identities of the unsuspecting. Many victims do not know they have been targeted until they themselves try to file a claim or are notified by EDD, the IRS, or their employer.”

“Today’s announcement reflects our collaborative commitment to work together across all levels of government and highlights that joint cooperation and a “one team, one fight” approach are already paying dividends,” said Mark S. Ghilarducci, Director, California Governor’s Office of Emergency Services and California’s Homeland Security Advisor. “Going forward, this State Coordination Task Force will remain laser focused on continuing to augment and coordinate with our partners at the US Attorney’s Office, with the district attorney’s offices and with our other state, local and federal law enforcement agencies, to continue to root out criminal activity and the fraud that has occurred within the unemployment system and ultimately hold those responsible accountable.”

“There are so many Californians that have been impacted by COVID-19, and we have no tolerance for anyone who tries to defraud the hard-working people of this state. Our investigators have been dedicated to this and other cases of fraud, and these indictments are the result of collaboration and hard work,” said Kathleen Allison, Secretary of the California Department of Corrections and Rehabilitation. “We want to thank U.S. Attorney Scott and all of our partners for the shared commitment in neutralizing fraud in the state’s prisons. We will continue to use every tool at our disposal to hold accountable those who break the law.”

“The EDD is committed to combatting the aggressive fraud attacks against the unemployment benefit system and is grateful for the collaborative efforts of federal, state and local partners in this shared goal,” said Nancy Farias, EDD’s Chief Deputy Director of External Affairs, Legislation, and Policy. “EDD has enhanced its fraud detection and prevention tools to ensure only valid claimants receive timely benefits. We will work with law enforcement to hold those accountable who seek to defraud the unemployment system.”

Today, the federal grand jury in Fresno returned an indictment involving a prison-based scheme out of the Central California Women’s Facility (CCWF) in Chowchilla. Inmate Sholanda Thomas, 36, and parolee Christina Smith, 37, were indicted for conspiracy to commit mail fraud and aggravated identity theft charges for the submission of several fraudulent EDD unemployment insurance claims in Thomas’ and other CCWF inmates’ names. Recorded jail calls and emails show that Thomas and others engaged in “bundling,” that is, they obtained the names, dates of birth, and social security numbers for inmates at CCWF and relayed that information to Smith to submit the fraudulent claims. The claims were submitted shortly thereafter, and the benefits were loaded onto debit cards that were mailed to the addresses provided.

The underlying applications for the claims falsely stated that the inmates had worked within the prescribed period as hairstylists, barbers, 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 a loss of over $200,000 as a result of the fraud.

Thomas and Smith used the proceeds for their own benefit, which included Smith keeping Thomas’ share in a shoebox pending Thomas’ release from prison, and Smith getting plastic surgery.

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

In the second scheme, Andrea M. Gervais, 43, of Roseville – a former Employment Development Department employee – allegedly participated in a mail fraud scheme involving approximately 100 fraudulent Pandemic Unemployment Assistance (PUA) claims in the names of persons other than Gervais. According to the criminal complaint, at least 12 of the 100 claims were processed for payment, and over $200,000 in PUA benefits were paid out to Gervais’s Roseville address in the form of Bank of America debit cards. The total value of all fraudulent PUA claims from her residence was at least $2 million.

The investigation began when investigators discovered a PUA claim using the identity of a sitting United States Senator for approximately $21,000. This fraudulent claim was processed for payment, and Gervais received a PUA debit card in the United States Senator’s name. Investigators further discovered that Bank of America ATM cameras captured Gervais on multiple occasions withdrawing cash from at least seven of the PUA debit cards, and at least one captured transaction showed Gervais using the debit card issued to the United States Senator.

This case is the product of an investigation by the U.S. Department of Labor – Office of 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 was arrested on federal complaint on Tuesday. On Wednesday, Gervais made her initial appearance before a U.S. magistrate judge and was released on bond pending further proceedings.

If convicted, Thomas and Smith face a maximum statutory penalty of 20 years in prison for conspiracy to commit mail fraud, and a mandatory and additional two-year prison sentence if convicted of aggravated identity theft. If convicted, Gervais faces a maximum statutory penalty of 20 years in prison for mail fraud. Each defendant also faces a maximum fine of $250,000 on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

The CARES Act is a federal law enacted March 29 that is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization that expands states’ ability to provide unemployment insurance for many workers impacted by COVID-19, including for workers who are not ordinarily eligible for unemployment insurance benefits.

Anyone with information about attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

SACRAMENTO, Calif. — Nicholas Vuksinich, 35, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to 17 years and seven months in prison for producing child pornography, U.S. Attorney McGregor W. Scott announced.

In sentencing Vuksinich, Judge Nunley said, “There are no victims in the criminal justice system more vulnerable than children.” Judge Nunley also ordered Vuksinich to pay at least $33,000 in restitution with additional amounts to be determined at a hearing scheduled for Feb. 11, 2021.

“This defendant’s conduct was long-lasting, extensive, and directed at real children whom he manipulated on the internet,” U.S. Attorney Scott said. “His actions will have severe effects on his victims that may last for the rest of their lives. Today’s sentence reflects the seriousness of the offense and our office’s commitment to protect children from further crimes of this nature.”

According to court documents, between July 6, 2016, and November 2016, Vuksinich communicated with a victim who lived in the Midwest region using video, audio, and Skype chat. When the communication began, Vuksinich knew that the victim was 14 years old. Through a series of online interactions on different days, Vuksinich directed her to engage in numerous demeaning, lewd, lascivious, and sexual activities, and he saved the images to his computer.

On May 30, 2018, law enforcement executed a search warrant at Vuksinich’s residence in Sacramento. A search of his computer revealed approximately 500 images of the victim. His computer also contained more than 900 additional child pornography videos and photos, including downloads on the day of the search. Skype chats on Vuksinich’s computer also indicated he directed numerous other minor children to perform sex acts.

This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorneys Christopher S. Hales and Rosanne L. Rust prosecuted the case.

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

SACRAMENTO, Calif. — Jonas Jarut, 41, of Emeryville, pleaded guilty today to conspiracy to transport stolen property interstate, U.S. Attorney McGregor W. Scott announced.

According to court documents, Jarut worked as a database administrator in the Graduate School of Education at a public university in Berkeley. In that position, his duties included purchasing Apple MacBooks for the graduate school. In March 2019, Jarut began stealing MacBooks from the graduate school and selling them for cash to an individual in Folsom who, in turn, resold and shipped them to buyers outside the state of California. In total, Jarut stole and sold that individual at least 90 MacBooks. The cost to the graduate school of those MacBooks was over $200,000.

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.

Jarut is scheduled for a status conference regarding sentencing on June 14, 2021. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the 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. — Sherman Smith, 74, of Monterey, was sentenced today to seven years and three months in prison and ordered to pay $2,187,000 in restitution for a scheme that defrauded church congregants and others, U.S. Attorney McGregor W. Scott announced.

In sentencing Smith, U.S. District Judge Dale A. Drozd said, “Mr. Smith is a con-man and a thief.”

“Smith’s actions in this case went far beyond ‘misappropriation,’” said U.S. Attorney Scott. “In asking for church donations to support his scheme, he targeted widows for their deceased husband’s life insurance money; he asked for money to be withdrawn from retirements accounts; he damaged marriages and family relationships; he took away parents’ dreams of affording college for their children, and he destroyed lives. Today’s sentence is the second federal sentence for Smith, who previously served 37 months in prison for securities fraud that caused a loss of over $5 million with 38 different victims. Our office is committed to protecting the public from financial predators like Smith.”

“Smith abused his trusted role as executive pastor of a community church by diverting funds intended to help the church and congregation to fund his personal and business expenses,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The FBI is committed to investigating allegations of significant financial crime, especially those involving individuals who exploit trusted, valued relationships. While today’s sentence offers some justice to Smith’s victims, many face a long journey to financial recovery from the hardship this scheme created. We ask the public to commit to researching all financial investment opportunities, regardless of who is proposing or coordinating the investment.”

On Sept. 18, Smith, the executive pastor of a church in Clovis, pleaded guilty to wire fraud. According to court documents, Smith induced investors, including church congregants, to give money to the church by representing that the money would be used to finance a real estate development project for the benefit of the church. Smith made appeals from the pulpit, via email, and in person for monies to pay off the church’s mortgage and to fund an income-generating development. Smith collected cash, checks, and rolled-over retirement accounts to fund the church’s project, but he did not disclose to investors that he used the money for personal expenses, to operate a publishing business, and to invest in foreign ventures. Smith defrauded investors of more than $2 million.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Laura D. Withers prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Ausencio Alvarez Cortez, 41, of Stockton, and Angel Ismael Ramirez, 30, of Los Angeles, charging them jointly with conspiring to distribute methamphetamine and possession of methamphetamine with intent to distribute, and charging Cortez separately with distributing methamphetamine, U.S. Attorney McGregor W. Scott announced.

According to court documents, on Oct. 26, a confidential source bought 3 pounds of methamphetamine from Cortez. Following that purchase, on Nov. 12, the source met again with Cortez, who was accompanied by Ramirez, ostensibly to execute a transaction for 50 pounds of methamphetamine. When Cortez showed the source the requested methamphetamine, however, law enforcement officers converged on the scene, arresting Cortez and Ramirez, and seizing the 50 pounds of methamphetamine as well as a loaded semi-automatic handgun from the back seat of Cortez’s pickup truck.

This case is the product of an investigation by the Federal Bureau of Investigation, the San Joaquin Metropolitan Narcotics Task Force, and the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.

If convicted, both Cortez and Ramirez face a maximum statutory penalty of life in prison and a $10 million fine, for each of the narcotics charges, all of which have a statutory mandatory minimum penalty of 10 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Ralph Zavala, 39, of Woodlake, charging him with being a felon in possession of a firearm and ammunition, U.S. Attorney McGregor W. Scott announced.

According to court documents, on Sept. 1, Zavala was arrested as part of a law enforcement effort to apprehend parolees who have absconded from parole supervision. Officers observed Zavala in a vehicle, and as they moved in to apprehend him, Zavala drove into an agent’s vehicle. Zavala was eventually arrested and found to be in possession of a loaded Cobra Denali semi-automatic .380 ACP pistol. Zavala has several felony convictions in Tulare County and is prohibited from possessing either a firearm or ammunition.

This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation, the Woodlake Police Department, and the Visalia Police Department. Assistant U.S. Attorney Laura Jean Berger is prosecuting the case.

If convicted, Zavala 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.

The case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.

SACRAMENTO, Calif. — A federal grand jury returned an indictment today charging a San Francisco man, arrested in Lincoln, with being a felon in possession of a firearm and possession of controlled substances, U.S. Attorney McGregor W. Scott announced.

Ricardo Manuel Duran, 37, was charged with being a felon in possession of a firearm, possession of heroin, and possession of methamphetamine. According to court documents, on Oct. 20, Duran possessed a Smith and Wesson handgun and was further found to be in possession of heroin and methamphetamine. Duran has been convicted of six prior felonies – two of them for being a felon in possession of a firearm – and is prohibited from possessing a firearm.

This case is the product of an investigation by the Lincoln Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Alexis Nelsen is prosecuting the case.

If convicted, Duran 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 a 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 also a part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.

FRESNO, Calif. — Ramon Armendariz, Jr., 33, of Bakersfield, was indicted on Oct. 15, 2020, and charged with multiple counts of wire fraud, bank fraud, and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.

According to court documents, Armendariz unlawfully obtained personal identifying information and bank account information of the victim, S.L., which he used to open a brokerage account in the victim’s name. Armendariz used S.L.’s personal bank accounts to fund the brokerage account. Armendariz listed himself as an authorized check writer on the brokerage account in order to access the funds when the transfers to the brokerage account were completed. Armendariz’s scheme unraveled when S.L. discovered the unauthorized transfers and notified the financial institution, resulting in a freeze of the funds in the brokerage account. 

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.

If convicted, Armendariz faces a maximum statutory penalty of 20 years in prison on each count of wire fraud, up to 30 years in prison on each count of bank fraud, and a mandatory consecutive sentence of two years in prison on the aggravated identity theft. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Joshua Wayne Thompson, 26, of Vallejo, was sentenced today to four years and three months in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.

According to court documents, on Nov. 18, 2019, law enforcement officers arrested Thompson on multiple felony warrants. Before the arrest, officers witnessed Thompson exit a home in Vallejo and approached him. Thompson ran toward and entered the driver’s side door of a Ford Fusion. While attempting to flee, Thompson rammed the Ford into a Deputy U.S. Marshal’s vehicle. Officers placed Thompson under arrest. At the time of the arrest, Thompson possessed a loaded pistol with a 25-round extended magazine. Thompson cannot possess a firearm or ammunition because he previously was convicted of a felony offense.

This case was a product of an investigation by the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the California Highway Patrol. Assistant U.S. Attorney Matthew Thuesen 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.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.

SACRAMENTO, Calif. — Jesus Heriberto Barajas, 29, of Suisun City, pleaded guilty today to possession of cocaine and methamphetamine for distribution and possessing a firearm as a felon, U.S. Attorney McGregor W. Scott announced.

According to court documents, on April 11, 2019, police officers executed a search warrant at Barajas’ home in Suisun City. During the search, they found approximately 860 grams (1.9  pounds) of powder cocaine, 370 grams (0.8 pounds) of methamphetamine, a digital scale, and a stolen .40-caliber pistol that had been modified to function as a fully automatic machine gun. Barajas is not allowed to possess firearms or ammunition because he has previously been convicted of a felony offense.

This case is the product of an investigation by the Fairfield Police Department, with special assistance from the FBI’s Solano County Violent Crimes Task Force, the Solano County District Attorney’s Office, and the Fresno County District Attorney’s Office. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

Barajas is scheduled to be sentenced by U.S. District Judge Troy Nunley on May 20, 2021. For each of the narcotics charges, Barajas faces a mandatory minimum sentence of five years in prison, a maximum statutory penalty of 40 years in prison and a fine of up to $5 million. For the firearm charge, Barajas faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is 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 also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.

FRESNO, Calif. — A former employee of the IRS working in Fresno was sentenced today to six years in prison for a scheme to receive tax refunds by filing false tax returns using the stolen identities of at-risk youths, U.S. Attorney McGregor W. Scott announced.

On Dec. 12, 2019, a federal jury found Marcela Heredia, 47, of Riverside, guilty of seven counts of wire fraud, four counts of aggravated identity theft, and one count of making a false tax return.

According to court documents and evidence introduced at trial, until 2014, Heredia worked at the Fresno Economic Opportunities Commission’s Transitional Living Center. Heredia also worked at the IRS as a Tax Examiner between 2008 and 2014. While working at the Transitional Living Center, Heredia stole residents’ personally identifiable information (PII) and filed numerous tax returns that included false wage and withholding information, false educational expenses, false dependent claims, and others false claims. Heredia directed the refunds for those returns to her personal bank account, spending the money on various personal expenses. Heredia failed to report any of the refund money she directed into her account on her 2011 tax return.

Many of the residents at the Transitional Living Center whose personal identifying information Heredia stole in order to file false tax returns were young, at-risk adults. Many were former foster children who had aged out of foster care, many were homeless and had nowhere else to go.

“Heredia spent three years taking advantage of vulnerable kids, stealing their personal information to get their tax refunds to spend on entertainment tickets, groceries, rental cars, restaurants, retail shopping, liquor stores, and other day-to-day expenses,” said U.S. Attorney Scott. “Today’s sentence reflects the serious nature of her conduct and serves as a warning to others. The U.S. Attorney’s Office will continue to work with the U.S. Department of the Treasury Inspector General for Tax Administration and IRS Criminal Investigation to investigate and bring to justice those who would carry out a tax fraud scheme.”

“The Treasury Inspector General for Tax Administration will aggressively pursue Internal Revenue Service employees who endeavor to corrupt our Nation’s tax system,” said J. Russell George, Treasury Inspector General for Tax Administration. “Identity theft is a nationwide problem that disrupts the lives of its victims. When an IRS employee uses their internal knowledge of the IRS to commit tax fraud, it jeopardizes taxpayer trust in our Nation’s tax system.”

“The IRS along with TIGTA uses all its investigative tools to uncover fraud when committed by the public or in this case an IRS employee,” said Kareem Carter, Special Agent in Charge of the Oakland Field Office, IRS-CI. “Heredia’s fraud scheme harmed the United States Government and members of the local community. Today’s sentencing should send a positive message to the American taxpayers that IRS employees are held to a high standard when working in a public position in order to safeguard and instill trust in the U.S. tax system.”

This case was the product of an investigation by the U.S. Department of the Treasury Inspector General for Tax Administration and IRS Criminal Investigation. Assistant U.S. Attorneys Laura D. Withers and Vincente A. Tennerelli prosecuted the case.

SACRAMENTO, Calif. — Kenneth Winton, 67, of Oroville, pleaded guilty today to conspiracy to commit wire fraud in relation to a $35 million Ponzi scheme, U.S. Attorney McGregor W. Scott announced.

The indictment in the related case, United States v. Piercey, 2:20-cr-211 TLN, charges Matthew Piercey, 44, of Palo Cedro, with wire fraud, mail fraud, money laundering, and witness tampering.

According to court documents, between July 2015 and August 2020, Piercey carried out an investment fraud scheme that raised a total of approximately $35 million in investor funds. Piercey used investment companies Family Wealth Legacy and Zolla to solicit funds from investors using a variety of false and misleading statements, including about trading algorithms, the success of the companies’ investment strategies, and the liquidity of investments. For example, Piercey solicited investor money for an “Upvesting Fund” that allegedly was an algorithmic trading fund with a history of success, but he admitted privately to an associate that there was no Upvesting Fund.

Piercey first recruited Winton as an investor, then to assist with raising investor funds, and ultimately to take on management responsibilities at Zolla. From 2018 to 2020, Winton conspired with Piercey and made various false and misleading statements to investors, including about the success of Zolla’s investment strategies, the reasons for delays in payment to investors, and the current location, value, and nature of Zolla investments. The part of the scheme attributable to Winton caused investors to make investments or forego their right to withdraw investments totaling approximately $11.6 million.

Piercey and Winton used some investor money to make payments to other investors in a “Ponzi scheme.” In total, they paid back approximately $8.8 million to investors. They used other investor money for various business and personal expenses, including two residential properties and a houseboat. Few, if any, liquid assets remain to repay investors.

According to court documents, Piercey also tampered with multiple witnesses by discouraging them from responding to grand jury subpoenas related to the investigation.

Winton is out of custody pending his sentencing. Piercey is currently in custody. When law enforcement agents attempted to arrest Piercey, he fled from arrest by leading agents on a vehicle chase through residential neighborhoods and then onto the highway before abandoning his vehicle and entering Lake Shasta with an underwater submersible device.

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

Winton is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Feb. 18, 2021. Winton faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. If convicted, Piercey faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, for each wire fraud and mail fraud count; 20 years in prison and a fine of up to $250,000 for each witness tampering count; and 20 years in prison and a fine of up to $500,000 or twice the value of the property involved, whichever is greater, for each money laundering 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 against Piercey are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. – The Department of Justice recognized the Solano County District Attorney’s Office, located in the Eastern District of California, for being an Outstanding Local Prosecutor’s Office in support of the Project Safe Neighborhoods (PSN) Initiative and its work with the U.S. Attorney’s Office.

“Throughout 2018 and 2019, the Solano County District Attorney’s Office demonstrated outstanding professionalism, support for U.S. Attorney’s Office initiatives, and ongoing cooperation with federal and state law enforcement partners to promote greater public safety.” U.S. Attorney McGregor W. Scott said. “The Solano County District Attorney’s Office has demonstrated the exemplary initiative and collaboration needed to make PSN successful in keeping our communities safe, meeting bi-weekly with our office to discuss potential cases for federal prosecution.”

“This award exemplifies the true partnership between our office and the Office of the United States Attorney, Eastern District of California,” said District Attorney Abrams. “Project Safe Neighborhoods has truly been a success under U.S. Attorney McGregor Scott’s leadership. We jointly share an unwavering commitment to getting illegal guns off the street and keeping our community safe, and I am honored to be working in collaboration with the U.S. Attorney’s Office regarding this effort.”

The Solano County District Attorney’s Office was recognized for the outstanding work in support of the PSN program. Since the start of the PSN program in Solano County in July 2018, the Solano County District Attorney’s Office has presented more than 400 cases for potential federal adoption, with 46 cases selected for federal prosecution targeting some of the most violent and recidivist criminals in Solano County. They facilitated a meeting to connect AUSAs with over 30 local gang investigators, improving collaboration and coordination between federal, state, and local investigating agencies, and overall intelligence sharing.

In October and November 2018 a multi-agency effort spearheaded by the Solano County District Attorney’s Office to identify the highest-risk offenders on probation, parole, and Post-Release Community Supervision located dozens of fugitives in Solano County in advance of Operation Triple Beam, a December 2018 exercise by the U.S. Marshals Service.

The Solano County District Attorney’s Office worked with the U.S. Attorney’s Office to facilitate federal adoption of cases that originated with state charges. These cases included: (1) a March 2018 attempted homicide, in which two co-conspirators pipe bombed a residential home with a family of five inside [United States v. Capenhurst, et al., 2:18-cr-055-KJM]; (2) a series of five convenience store robberies, during which the lead defendant brandished a firearm and threatened the counter clerks at gunpoint [United States v. Young, et al., 2:18-cr-142-JAM]; and (3) five additional felon-in-possession of a firearm cases, including one defendant who was sentenced as an armed career criminal.

Given its position at the southwest boundary of the Eastern District of California, numerous cases originating in, or with ties to, Solano County, overlap with criminal conduct that could also be charged in surrounding counties (Napa, Contra Costa, Alameda, and/or Sacramento) or in the Northern District of California. In at least two significant cases, the Solano County District Attorney’s Office agreed to dismiss local charges in lieu of federal prosecution in cases with multijurisdictional criminality. These included: (1) the five Hobbs Act robberies charged in United States v. Young, et al., 2:18-cr-142-JAM, which spanned from Alameda County, to Solano County, to Sacramento County; and (2) a high-volume drug-trafficking case stretching from Alameda County to Solano County, in which detectives seized over 4 pounds of powder cocaine and over 3.5 pounds of cocaine base (crack cocaine) from the defendant’s home in Vallejo [United States v. McCutcheon, 2:18-cr-218-TLN]. The defendant in that case will be sentenced as a career offender.

The examples above are representative of the exemplary work the Solano County District Attorney’s Office has performed as part of PSN to decrease violent crime throughout Solano County and Northern California.

Revitalized in 2017, PSN is a critical piece of the Department’s crime reduction efforts. PSN has focused on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.

SACRAMENTO, Calif. — William Frances Stevens, 53, of Stockton, pleaded guilty today to theft of government property and aggravated identity theft and has agreed to pay full restitution, U.S. Attorney McGregor W. Scott announced.

According to court documents, in 2015, Stevens applied for Supplemental Security Income (SSI) disability benefits in California under his true identity. The Social Security Administration (SSA) ultimately denied his application because it did not find him disabled. In 2017, Stevens then stole his brother’s identity and used it unlawfully to apply for SSI benefits again. In his application, Stevens used a fraudulent California driver’s license that he obtained using his brother’s name, date of birth, and Social Security number.

In July 2017, SSA approved Stevens’ fraudulent SSI application and began paying him SSI benefits. During a portion of the time Stevens was receiving benefits, he was incarcerated for unrelated offenses. Stevens listed his wife as a representative payee so she could continue to collect the stolen benefits on his behalf while he was incarcerated. In general, jail inmates are not eligible to collect SSI benefits while they are incarcerated.

According to the plea agreement, SSA paid Stevens over $28,000 in SSI benefits between 2017 and 2019. Additionally, because Stevens was approved for SSI, he qualified for Medi-Cal benefits that were subsidized through federal funds paid to the California Department of Health Care Services. During this same timeframe, Stevens received over $38,000 in Medi-Cal benefits, in the form of medical coverage and services, to which Stevens was not entitled. Stevens knew he was not entitled to any of these benefits because, at a minimum, he had used a fraudulent identity to obtain them.

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

Stevens is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Feb. 22, 2021. Stevens faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for theft of government property. The penalty for aggravated identity theft is a mandatory two‑year prison term consecutive to any other sentence and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Tien Van Phan, 56, of the San Jose area, pleaded guilty today to conspiring to distribute and possess with intent to distribute marijuana that was shipped from Fresno to Kansas City, Missouri, U.S. Attorney McGregor W. Scott announced.

According to court documents, agents intercepted calls between co-defendants Elias Zambrano Jr., of Fresno; Tan Minh Vo, of San Jose; Halen Steven Patrick Frazier, of Kingsville, Missouri; and David Agustus McGowan, of Kansas City, Missouri, regarding the coordination of the shipment of approximately 92 pounds of marijuana to Frazier in Kansas City. On Nov. 9, 2018, law enforcement agents saw Phan load two suitcases into Frazier’s vehicle in Kansas City. After conducting a traffic stop, 92 pounds of marijuana was seized from Frazier’s vehicle.

Phan is scheduled for sentencing on Feb. 22, 2021. He faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Frazier previously entered a guilty plea to the drug conspiracy and was sentenced to two years and three months in prison. Patrick Maldonado, of Madera, and Zambrano, who also face charges relating to the cocaine and firearms, along with Vo, are scheduled for a status conference in federal court in Fresno on Dec. 14. As to these defendants, the charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the 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.

SACRAMENTO, Calif. — One of 16 members and associates of the Aryan Brotherhood (AB), a prison-based gang, charged in 2019 for organized criminal activity inside and outside of California’s prisons has pleaded guilty today, U.S. Attorney McGregor W. Scott announced.

Samuel Keeton, 41, of Menifee, an AB gang associate, pleaded guilty to conspiracy to participate in a racketeering enterprise (known as the “RICO” statute) and to conspiracy to distribute heroin and methamphetamine.

According to court documents, between 2011 and 2016, AB members and associates engaged in racketeering activity, committing multiple acts involving murder and drug trafficking offenses. From their shared cell in California State Prison (CSP) Sacramento, Ronald Yandell and William Sylvester oversaw a significant heroin and methamphetamine trafficking operation using smuggled-in cellphones to communicate with AB members and associates.

In June 2019, sixteen defendants were indicted on federal racketeering and other charges. The allegations include murders, drug trafficking and other violent crimes. Nine of the defendants were inmates in California prisons and six of those were serving life sentences for murder.

According to the plea agreement, between March 2016 and at least October 2016, Keeton knowingly associated with the AB and knew that this group regularly engaged in a pattern of racketeering activity that included murder, assault, conspiracy to commit murder, and drug trafficking. For his part, Keeton assisted the AB by picking up and distributing methamphetamine and heroin on behalf of AB members Yandell, Sylvester, and Travis Burhop. Keeton also delivered drug proceeds to AB associates outside of prison. During the RICO conspiracy, Yandell, Sylvester, and Burhop were all incarcerated within the California prison system, and Keeton communicated with them over contraband cellphones.

As part of his guilty plea, Keeton admitted that he knew that Yandell and Sylvester were AB members based upon his discussions with them during 2016, including the crimes that he was asked to commit and that he agreed to commit, such as assisting in smuggling cellphones, drugs, and other contraband into prison. As part of the RICO conspiracy, on July 11, 2016, Keeton transported and delivered at least 100 grams of heroin from Southern California to Jeanna Quesenberry in Sacramento on behalf of Yandell and the AB. On Aug. 11, 2016, Keeton participated in a plot to smuggle methamphetamine and other contraband into CSP Sacramento for Sylvester with the agreement and assistance of Kevin MacNamara, a licensed California lawyer living in Southern California. Keeton also collected AB drug money on Aug. 12, 2016.

This case is the product of an investigation by the Drug Enforcement Administration with assistance from the California Department of Corrections and Rehabilitation, the Vallejo Police Department, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the El Dorado County District Attorney’s Office, and the Nevada County Sheriff’s Office.

Keeton is scheduled for a hearing regarding sentencing before U.S. District Judge Kimberly J. Mueller on March 29, 2021. Keeton faces a maximum statutory penalty of life in prison and a fine up to $10 million. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

This case 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. — Orel Gohar, 30, formerly of San Francisco, pleaded guilty Tuesday to conducting an illegal gambling business, conspiracy to commit money laundering, and failure to appear, U.S. Attorney McGregor W. Scott announced.

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

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

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

Co-defendant Eran Buhbut, 35, of Oakland, has also pleaded guilty and awaits sentencing. The remaining co-defendants have pleaded guilty and have been sentenced.

Gohar is scheduled to be sentenced by Judge John A. Mendez on March 2, 2021. Gohar faces a maximum statutory penalty of five years in prison for the illegal gambling offense, 20 years in prison for each of the money laundering conspiracies, and five years in prison for the failure to appear (to be served consecutively to the other sentences imposed). 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. — As part of a multi-agency operation, more than 60 individuals associated with the Aryan Brotherhood were arrested in California, Nevada and Montana on federal and state charges in connection with their gang activities, including violent crimes, illegal firearms trafficking and possession and drug trafficking.

The charges were announced today by U.S. Attorney McGregor W. Scott, California Attorney General Xavier Becerra, Fresno County District Attorney Lisa Smittcamp, Special Agent in Charge Patrick Gorman of the ATF’s San Francisco Field Office, Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office, and Fresno County Sheriff Margaret Mims.

“For the second time in less than 18 months, we are announcing federal charges against Aryan Brotherhood members and associates, a violent gang operating in California prisons,” said U.S. Attorney Scott. “Yesterday, five inmates were transferred to federal custody from California state prisons. All were serving lengthy sentences, two were serving life sentences for murder. We are committed to doing everything we can to stop these violent inmates from orchestrating their criminal activities from inside prison walls.”

“This operation was an expansive multi-agency law enforcement investigation into the ongoing violent criminal activity conducted by the Aryan Brotherhood and associated gangs throughout the Fresno area and the nation,” said Special Agent in Charge Gorman. “ATF and our law enforcement partners knew that if we effectively and efficiently leveraged our resources and specialties that we would accomplish much more together than we could alone. From the outset, we had a clear plan and a sharp focus for running an investigation that would impact the community for the better. Thanks to a tremendous amount of great work on the street level, we have accomplished what we set out to do.”

“The FBI continues to work with our local, state, and federal law enforcement partners to ensure we all have safe neighborhoods for our families. Our collaborative investigation is a testament to the success of a multi-agency approach to identifying, disrupting, and dismantling criminal organizations,” said Special Agent in Charge Ragan. “In addition to the significant efforts of our partners, FBI agents, deputized task force officers, intelligence analysts, and support personnel alone have committed more than 6,000 hours of work to the success of this operation since August 2019.”

Earlier this year, investigators began seeing evidence that Aryan Brotherhood (AB) members and associates in prison were directing criminal activities outside of the prison walls. The AB is gang formed in the California prison system in about 1964 by white inmates who wanted to gain power and authority in prison. It includes other associated gangs, such as Fresnecks, Peckerwoods, and Skinheads.

During the course of the investigation, robberies, murders, drug trafficking, pervasive fraud, and firearms offenses occurring in Fresno, San Bernardino, Santa Barbara, Inyo, and other areas in California, were tied to the AB prison gang. Eventually, the investigation reached as far as Montana, Missouri, Idaho, and Alabama. Eleven acts of violence were intercepted before they were accomplished, and over 80 pounds of methamphetamine, 5 pounds of heroin, and over 25 firearms were seized.

According to the federal complaint, a network of defendants engaged in a series of firearms and drug trafficking offenses, mostly led by defendants Robert Eversole, Kenneth Bash, and Todd Morgan. The drug offenses involved pound quantities of methamphetamine, and the trafficking extended outside of California. Additionally, several defendants participated in a conspiracy to smuggle drugs and dangerous contraband into prisons. The complaint also alleges illegal firearms possession related to a plan to commit a murder. The complaint charges the following defendants:

1)         Kenneth Bash, aka “Bash” of Salinas Valley State Prison (drug trafficking)

2)         Robert Eversole, aka “Rage,” of Kern Valley State Prison (firearms and drug trafficking)

3)         Stephanie Madsen of Torrance (drug trafficking)

4)         Todd Morgan, aka “Fox,” of Salinas Valley State Prison (drug trafficking)

5)         David Zachocki, aka “Lil David Z,” of Lodi (felon in possession of a firearm)

6)         Cody Brown of Atascadero (drug trafficking)

7)         Regina Broomall, aka “G,” of Santa Maria (firearms trafficking)

8)         Geoffrey Guess, aka “Active,” of Fresno (firearms trafficking)

9)         Angel Lopez, aka “Rascal,” of Salinas Valley State Prison (drug trafficking)

10)       Joseph McWilliams, aka “Janky,” (drug trafficking, felon in possession of a firearm, possession of a firearm in furtherance of a drug trafficking offense)

11)       James Armstrong (drug trafficking)

12)       Marlon Palmer, aka “P-Nut,” of Salinas Valley State Prison (drug trafficking)

13)       Samantha Booth of Clovis (drug trafficking)

14)       Jacob Renshaw, aka “Shredder,” in custody in Montana (drug trafficking)

15)       Amanda Gourley, aka “Biggie,” of Fresno (drug trafficking)

The Fresno County District Attorney’s office has charged more than 30 people in connection with this investigation for gang conspiracy, fraud and violent crimes including kidnapping, carjacking, assault with a firearm and arson.

As part of this operation, 39 federal and state search warrants were served in Fresno, Santa Maria, Los Angeles, and Montana. Multiple guns, and over 7 pounds of methamphetamine, prescription pills and heroin were found and seized as a result of these searches. Additionally, California Department of Corrections and Rehabilitation conducted searches of 63 cells in 14 state prisons in California related to this investigation. Among the items seized in the prisons were cellphones and drugs.

This investigation was conducted by the California Department of Justice and California Highway Patrol Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, the Fresno Police Department, and the California Department of Corrections and Rehabilitation Special Services Unit (SSU).

Assisting in the arrests were the U.S. Marshals Service, the Bishop Police Department, and the Clovis Police Department. Assistant U.S. Attorneys Stephanie Stokman and Thomas Newman, and Fresno County Deputy District Attorneys Robert Veneman-Hughes and Dennis Lewis are handling the prosecutions.

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

FRESNO, Calif. – A federal grand jury has returned a one-count indictment against Kevin James Strutz, 49, of Ceres, charging him with cyberstalking, U.S. Attorney McGregor W. Scott announced today.

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

Law enforcement has learned that Strutz may have victimized more than one person. Anyone with additional information or who believes that they might be a victim can contact the FBI at tips.fbi.gov.

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

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

FRESNO, Calif. — A federal grand jury returned a one-count indictment today charging Sammy Booboo Garcia, 19, of Fresno, with unlawfully possessing a firearm after being convicted of a felony crime, U.S. Attorney McGregor W. Scott announced. 

According to court documents, on April 29, law enforcement officers in Fresno stopped Garcia for a traffic violation and arrested him when they found him in possession of a firearm. Garcia has a felony conviction for corporal injury on a spouse or cohabitant and is prohibited from possessing firearms or ammunition.

This case is the product of an investigation by the Fresno Police Department, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Katherine E. Schuh and Antonio J. Pataca are prosecuting the case.

If convicted, Sammy Booboo Garcia 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.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.

FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Armando Chavez Jr., 19, of Fresno, charging him with possessing over 40 grams of fentanyl with intent to distribute it and possessing a firearm in furtherance of a drug trafficking crime, U.S. Attorney McGregor W. Scott announced.

According to court documents, Armando Chavez Jr. was selling counterfeit oxycodone pills laced with fentanyl on Snapchat, a social media platform. After a nonfatal overdose was reported, Federal law enforcement agents working in an undercover capacity contacted Chavez and ordered oxycodone pills from him. Chavez agreed to sell the pills and drove to a predetermined meeting location. Once he arrived, Chavez and his car were searched, and law enforcement found approximately 100 fentanyl pills. Agents then executed a federal search warrant at Chavez’s residence. Inside his bedroom, law enforcement found over 1,300 fentanyl pills packaged for distribution and a loaded handgun.

This case is the product of an investigation by the Drug Enforcement Administration, the Department of Homeland Security Investigations, the California Highway Patrol, and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.

If convicted, Chavez faces a five-year mandatory minimum sentence, a five-year consecutive mandatory minimum sentence (for a total 10-year mandatory minimum sentence), a maximum penalty of life in prison, and a fine of up to a $5 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

SACRAMENTO, Calif. — A former California Department of Corrections and Rehabilitation (CDCR) correctional officer was charged today with criminal civil rights violations and submitting false reports, U.S. Attorney McGregor W. Scott announced.

A federal grand jury in Sacramento returned an indictment against Arturo Pacheco, 38, of Mather, charging him with two counts of deprivation of rights under color of law and two counts of falsification of records in a federal investigation.

According to the indictment, Pacheco was a correctional officer at California State Prison, Sacramento. On Sept. 15, 2016, Pacheco and another former correctional officer, Ashley Marie Aurich, escorted an inmate whose hands were handcuffed behind the inmate’s back. During the escort, Pacheco bent down behind the inmate and pulled the inmate’s legs out from under him. This caused the inmate to immediately fall forward, violently striking his head and upper torso on the concrete. The inmate-victim was taken to the hospital where he died approximately two days later.

“Pacheco, abused his position of authority to harm an inmate,” said U.S. Attorney Scott. “Instead of upholding and enforcing the law, he went on to conceal his actions and asked others to assist him. The U.S. Attorney’s Office will continue to hold accountable correctional officers who violate the public’s trust by harming inmates or by covering up wrongdoing.”

“The FBI’s Civil Rights Program dedicates significant effort to investigating police misconduct and other crimes committed by individuals exploiting their government-granted powers. When individuals working in an official capacity violate the trust of their communities by abusing that power, they undermine the hard work of all officials," said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. "The FBI is committed to strengthen trust in law enforcement by holding those who abuse their privileges and abandon their responsibilities accountable.”

Aurich was charged separately with a single count of falsification of records in a federal investigation. Pacheco and Aurich allegedly prepared false reports regarding Pacheco’s assault on the victim in which both Pacheco and Aurich failed to identify another witness to the assault and inaccurately described Pacheco’s conduct. Pacheco and Aurich prepared their respective false reports in order to impede and obstruct the ensuing federal investigation.

According to the indictment, on May 19, 2016, Pacheco used his CDCR-issued pepper spray to spray a different inmate in the face. At the time, the inmate was calm and compliant. The pepper spray caused the inmate to experience an extreme burning sensation, physical pain, and temporary blindness. Following this incident, Pacheco submitted another false report in which he falsely described his conduct and the reason why he sprayed the inmate-victim in the face with pepper spray.

This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Corrections and Rehabilitation, Office of Internal Affairs. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.

If convicted of deprivation of rights under color of law, Pacheco faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count. If convicted of falsification of records in a federal investigation, Pacheco and Aurich face a maximum statutory penalty of 20 years in prison and $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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. – The Eastern District of California has been allocated funding to hire an Assistant U.S. Attorney for a one-year term, who will focus on prosecuting cases involving schemes to unlawfully obtain unemployment insurance benefits and related offenses through the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, U.S. Attorney McGregor W. Scott announced today.

The CARES Act allocated $270 billion for supplemental federal unemployment insurance benefits. Additionally, President Donald J. Trump directed that $44 billion in federal disaster relief funds be used to provide supplemental unemployment insurance benefits to eligible claimants. The substantial increase in funding for unemployment insurance benefits unfortunately spurred a dramatic spike in unemployment insurance fraud across the country, resulting in the theft of federal funds intended to help those struggling with unemployment during the current pandemic and economic crisis.

“Initial indications are that the level of fraud in California will involve thousands of thieves and hundreds of millions of dollars of stolen taxpayer money,” U.S. Attorney Scott said. “These funds are intended to help workers struggling in the wake of the Coronavirus pandemic, but the fraud schemes deplete the fund and cheat the very workers the funds are intended to protect. With our law enforcement partners, we will continue to investigate and stop fraud schemes like this that harm California workers.”

The U.S. Department of Justice, in close coordination with the U.S. Department of Labor and other federal agencies, created the U.S. Department of Justice National Unemployment Insurance Fraud Task Force. This task force is charged with investigating numerous CARES Act fraud schemes targeting the unemployment insurance programs of state workforce agencies and will work closely with United States Attorneys’ Offices to prosecute those individuals who have fraudulently diverted these funds from those struggling with unemployment.

SACRAMENTO, Calif. — The creator of investment companies Family Wealth Legacy and Zolla was arrested today for a $35 million fraud scheme, U.S. Attorney McGregor W. Scott announced.

Matthew Piercey, 44, of Palo Cedro, was arrested today after a grand jury returned an indictment on Nov. 12, charging him with wire fraud, mail fraud, money laundering, and witness tampering. The indictment was unsealed today following his arrest.

When law enforcement agents attempted to arrest Piercey today, he fled from arrest by leading agents on a vehicle chase through residential neighborhoods and then onto the highway before abandoning his vehicle and entering Lake Shasta with an underwater submersible device. Law enforcement officers arrested him after he emerged from the lake.

In addition, Kenneth Winton, 67, of Oroville, was charged separately by criminal information with conspiracy to commit wire fraud.

According to court documents, from about July 2015 through August 2020, Piercey carried out an investment fraud scheme that raised a total of approximately $35 million in investor funds. Piercey used Family Wealth Legacy and Zolla to solicit funds from investors using a variety of false and misleading statements, including about trading algorithms, the success of the companies’ investment strategies, and the liquidity of investments. For example, Piercey solicited investor money for an “Upvesting Fund” that allegedly was an algorithmic trading fund with a history of success, but he admitted privately to an associate that there was no Upvesting Fund. Piercey first recruited Winton as an investor, then to assist with raising investor funds, and ultimately to take on management responsibilities at Zolla. From 2018 to 2020, Winton conspired with Piercey and made various false and misleading statements to investors, including about the success of Zolla’s investment strategies, the reasons for delays in payment to investors, and the current location, value, and nature of Zolla investments.

Piercey and Winton used some investor money to make payments to other investors in a “Ponzi scheme.” In total, they paid back approximately $8.8 million to investors. They used other investor money for various business and personal expenses, including two residential properties and a houseboat. Few, if any, liquid assets remain to repay investors.

According to court documents, Piercey also tampered with multiple witnesses by discouraging them from responding to grand jury subpoenas related to the investigation.

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

Piercey is scheduled for his initial appearance and arraignment on Tuesday, Nov. 16. Winton is scheduled for his initial appearance on Thursday, Nov. 19.

If convicted, Piercey faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, for each wire fraud and mail fraud count; 20 years in prison and a fine of up to $250,000 for each witness tampering count; and 20 years in prison and a fine of up to $500,000 or twice the value of the property involved, whichever is greater, for each money laundering count. If convicted, Winton faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned three indictments against nine individuals on Thursday, charging the defendants with conspiring to distribute methamphetamine in Kern County, U.S. Attorney McGregor W. Scott announced.

The first indictment charges Miguel Zuniga Arteaga, 41, of Delano; Armando Martinez, 60, of Los Angeles; Terry Whited, 37, of Idaho; Miguel Angel Sanchez-Meza, 48, of Mexico; Juan Vizuett-Resendiz, 34, of Texas; and Vincente Salvador Arenas-Garcia, 36, of Bakersfield, with conspiring to distribute methamphetamine,

According to court documents, between Aug. 9, 2017, and Nov. 10, 2020, these defendants conspired to distribute methamphetamine in Kern County and elsewhere. During the course of this investigation, law enforcement obtained court-authorized wiretaps and seized over 44 pounds (20 kilograms) of methamphetamine, approximately $259,840 in purported narcotics proceeds, and seven firearms.

The second indictment charges Miguel Zuniga Arteaga, 41, of Delano; Armando Martinez, 60, of Chino Hills; and Rene Zepeda Felix, 36, of Bakersfield, with conspiring to distribute methamphetamine. According to court documents, between Aug. 9, 2017, and Oct. 27, 2017, these defendants conspired to distribute methamphetamine in Kern County and elsewhere.

The third indictment charges Jose Eden Landeros, 40, and Israel Munguia-Munoz, 40, both of Mexico, with conspiring to distribute methamphetamine. According to court documents, between Nov. 13, 2017, and June 1, 2018, these defendants conspired to distribute methamphetamine in Kern County and elsewhere.

These cases are the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Kern County Sheriff’s Office, the California Highway Patrol, and the Kern County Probation Office. Assistant U.S. Attorneys Angela Scott and Jessica Massey are prosecuting the cases.

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

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF is the largest anticrime task force in the country, and its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States. The prosecutor-led, intelligence-driven, multi‑agency task forces leverage the authorities and expertise of federal, state, and local law enforcement.

FRESNO, Calif. — Pablo G. Rivera, 36, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to two years and six months in prison for assault on federal officer or employee, U.S. Attorney McGregor W. Scott announced.

According to court documents, on Jan. 19, 2019, Rivera forcibly assaulted a U.S. Postal Service mail carrier in his mail truck while the mail carrier was delivering mail. That day, the defendant attempted to enter several occupied vehicles on Shaw Avenue in Fresno, CA. When he was unsuccessful, he forced his way into a mail truck by shoving the mail carrier. The mail carrier escaped, but Rivera absconded with the mail truck. He was apprehended after he crashed into a telephone pole and fled on foot. Rivera was charged in both state and federal court. He pleaded guilty to the federal charge on Aug. 21.

This case was the product of an investigation by the Fresno Police Department and the U.S. Postal Inspection Service. Assistant U.S. Attorney Justin J. Gilio 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. — Hacel Alfredo Alvarez, 36, of Bakersfield, was sentenced today to 10 years in prison, to be followed by three years of supervised release for possessing with intent to distribute methamphetamine and heroin, U.S. Attorney McGregor W. Scott announced. In addition, U.S. District Judge Dale A. Drozd ordered the forfeiture of Alvarez’s residence, which was used to facilitate his drug trafficking activities.

Alvarez pleaded guilty on Jan. 27. According to court documents, during the execution of a search warrant, officers found 21 pounds of methamphetamine and over 1 pound of heroin at his residence in Bakersfield. The officers also found over $10,000 in cash, which was previously forfeited. Alvarez admitted that he had been distributing methamphetamine for over one and a half years.

At sentencing, Judge Drozd stated that the sheer quantities of drugs involved are too significant to cast aside. Alvarez’s conduct was “serious” and his “ongoing criminal behavior” justified a lengthy sentence.

This case was the product of an investigation by the Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, which consists of agents from Homeland Security Investigations and Kern County Sheriff’s Office. Assistant U.S. Attorneys Karen A. Escobar and Kevin Khasigian prosecuted the case.

FRESNO, Calif. — Raymond Brewer, 64, of Porterville, was arrested today on a 24-count indictment charging him with wire fraud, money laundering, and aggravated identity theft, U.S. Attorney McGregor W. Scott announced. A grand jury returned an indictment on Oct. 29, and it was unsealed today.

According to court records, since at least March 2014, Brewer acted primarily through his now defunct, Tulare-based company called CH4 Power to steal at least $8,750,000 from investors. He purported to build anaerobic digesters on dairies in Fresno, Kern, Kings, and Tulare counties and elsewhere in California and Idaho.

The digesters were supposed to convert cow manure into renewable energy in the form of methane natural gas. The natural gas, in turn, could be sold to generate revenue and returns for investors. But Brewer never actually built or even began construction on the digesters. Instead, he used the investors’ money to make various personal expenditures, which included his personal residence, new vehicles, and a property in Montana.

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

If convicted of the wire fraud, Brewer faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. If convicted of money laundering, he faces 10-20 years in prison and fines of up to $250,000-$500,000, or twice the amount of funds involved, whichever is greater. If convicted of aggravated identity theft, he faces a mandatory two-year sentence consecutive to any other sentence. 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; the defendant is presumed innocent until proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Joshua Paul Doyle, 38, of Susanville, charging him with two counts of possession with intent to distribute methamphetamine and two counts of being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.

According to court documents, Doyle was arrested twice in the span of six months during traffic stops, each time found to be in possession of methamphetamine for distribution and firearms. Doyle has been convicted previously of crimes punishable by more than a year in prison and is therefore prohibited under federal law from possessing firearms.

On May 12, when a law enforcement officer executed a traffic stop in Susanville on a vehicle for having no front license plate, the officer identified the driver as Doyle. During a pat-down search, deputies found methamphetamine in his pockets. In the search of Doyle’s vehicle that followed, deputies found a loaded handgun in the center console, as well as another loaded handgun and nearly a pound of methamphetamine in a backpack in the back seat. Doyle was arrested and later released on bail pending trail.

On Sept. 30, Doyle was again stopped in Susanville when a records check of the car’s license plate indicated it had been reported stolen. During a search of the car, officers found brass knuckles, roughly 5 ounces (150 grams) of methamphetamine, and a loaded handgun in the center console.

This case is the product of an investigation by the Federal Bureau of Investigation, the Lassen County Sheriff’s Office, the Lassen County District Attorney's Office, and the Susanville Police Department. Assistant U.S. Attorney James Conolly is prosecuting the case.

If convicted, Doyle faces a maximum statutory penalty of 40 years in prison and a $5 million fine for each of the narcotics charges, each of which also have a statutory minimum sentence of five years. He faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each of the felon in possession charges. 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 also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.

SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment today against Matthew Goyder, 37, of Folsom, charging him with three counts of sexual exploitation of a child, distribution of child pornography, and receipt of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, between July 2017 and March 2020, Goyder engaged in the sexual exploitation of three minor victims using the internet. In addition, he distributed and received child pornography.

This case is the product of an investigation by the Internet Crimes Against Children task force, the Pinellas County Sheriff’s Office, the Pinellas Park Police Department, the Pasco County Sheriff’s Office, and the Folsom Police Department. Assistant U.S. Attorney Roger Yang is prosecuting the case.

If convicted of sexual exploitation of a child, Goyder faces a mandatory statutory minimum sentence of 15 years in prison up to a maximum penalty of 30 years in prison and a fine of up to $250,000. If convicted of the receipt and distribution of child pornography counts, Goyder faces a mandatory minimum sentence of five years in prison up to a maximum penalty of 20 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.

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 Florida man was indicted today for distributing heroin, oxymorphone, oxycodone, and fentanyl as the narcotics vendor “chlnsaint” on Empire Market, a darknet hidden service, U.S. Attorney McGregor W. Scott announced.

Chaloner Saintillus, 32, of Delray Beach, Florida, was charged with conspiracy to distribute a controlled substance and four counts of distribution of a controlled substance.

According to court documents, the vendor site for “chlnsaint” advertised the sale of fentanyl, carfentanyl, cocaine, oxymorphone, and other narcotics. From August 2019, when the vendor account was created, through August 2020, when Empire Market stopped its operations, “chlnsaint” completed over 1,100 narcotics sales and had a positive customer feedback rating of 98%. Saintillus also offered direct deals through the encrypted messaging app Wickr under the name “showstill.”

Through the course of the investigation, agents conducted numerous undercover buys of fentanyl, heroin, oxycodone, and oxymorphone. Surveillance footage from the post offices from where the parcels were mailed revealed that Saintillus paid for the postage. Agents also conducted surveillance of Saintillus in Florida and identified him mailing a parcel that was later seized and found to contain fentanyl. Agents conducted a search of Saintillus’ residence on Oct. 26, and found a loaded handgun, more than 2,000 rounds of ammunition, large quantities of narcotics, including fentanyl, and approximately $25,000 in the cryptocurrency XRP.

This case was investigated by the Northern California Illicit Digital Economy (NCIDE) task force, which is comprised of agents from the Federal Bureau of Investigation, Homeland Security Investigations, the United States Postal Inspection Service (USPIS), the Internal Revenue Service, Criminal Investigation, and the Drug Enforcement Administration. NCIDE agents received assistance from the West Palm Beach, Florida offices of USPIS, HSI, FBI, and DEA, and the Palm Beach County Sheriff’s Office and the Delray Beach Police Department. Assistant U.S. Attorney Grant B. Rabenn is prosecuting the case.

If convicted of the conspiracy charge, Saintillus faces a mandatory minimum of 10 years in prison and a maximum statutory penalty of life in prison and a $10 million fine. If convicted of the drug distribution charges, he faces a statutory maximum 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.

FRESNO, Calif. — A federal grand jury returned an eleven-count indictment today against Nahed Mishmish, 46, of Bakersfield, charging him with wire fraud, mail fraud and aggravated identity theft in a scheme that caused more than $900,000 in losses to the financial institutions, U.S. Attorney McGregor W. Scott announced.

According to the indictment, between Jan. 1, 2015, and Jan. 15, 2020, Mishmish carried out a scheme to defraud Synchrony Bank, Capital One and other credit card companies and financial institutions. Mishmish obtained personally identifiable information (PII) of numerous individuals without their authorization and used the information to open credit card accounts. Mishmish allegedly used the cards to pay for personal expenses such as a vehicle lease and rent. The credit accounts were also being used to purchase large amounts of cigarettes at Rite Aid stores.

According to the criminal complaint, the FBI was tipped off that someone in Kern County was creating and using fraudulent credit card accounts, in part to buy large quantities of cigarettes from a Rite Aid store in McFarland. The FBI identified this individual as Mishmish. During a search of Mishmish’s residence, more than 60 cellphones were found and seized. The cellphones were marked with names, PII, and corresponding credit accounts.

This case is the product of an investigation by the Federal Bureau of Investigation with the assistance of the U.S. Postal Inspection Service and task force members: the Kern County Sheriff’s Office, the Bakersfield Police Department and the California Highway Patrol. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.

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

SACRAMENTO, Calif. — Kenny Losito, 31, of Fairfield, was sentenced to 12 years and six months in prison on Monday for two counts of being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.

According to court records, Losito was arrested by the Vacaville Police Department on March 14, 2019, following a traffic stop. Officers found a loaded 9 mm handgun under Losito’s seat that officers later determined had been reported stolen in Nevada. After being released on bail, Losito was again arrested by the Vacaville Police Department on April 19, 2019, following a traffic stop, and was found with a loaded Tanfoglio GT32 firearm under his seat. Losito has several prior felony convictions that prohibit him from possessing firearms.

This case was the product of an investigation by the Vacaville Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Colleen Kennedy 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.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.

SACRAMENTO, Calif. — A Chico man was sentenced to three years and six months in prison for burglaries of post offices in Butte, Glenn, Shasta, Sutter and Tehama counties, U.S. Attorney McGregor W. Scott announced.

On Aug. 4, Jeremy Elguez, 32, pleaded guilty to two counts of burglary and admitted to burglarizing 10 U.S. Postal Service post offices. According to court documents, between Aug. 23, 2019 and March 1, 2020, Elguez burglarized the Butte City Post Office twice, the Glenn Post Office twice, the Vina Post Office, the Bangor Post Office, the Stirling City Post Office, the Meridian Post Office, the Artois Post Office, and the Cassel Post Office. Items reported stolen during these burglaries included mail, postal money orders, cameras, and a check for $80,000. On Aug. 1, 2019, Elguez also attempted to cash a $350,000 check stolen from the mail.

This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Tanya B. Syed prosecuted the case.

SACRAMENTO, Calif. — A resident of Georgia was arrested today in Grayson, Georgia, for a scheme conducted online that defrauded a business owner in in California and a second business owner in New Jersey, U.S. Attorney McGregor W. Scott announced.

On Oct. 22, a federal grand jury returned a one-count indictment against Michael Uziewe, 61, of Grayson, Georgia, charging him with bank fraud. This indictment was unsealed today.

According to court documents, Uziewe owned a purported business named God’s Word Christian Book Store. In March 2020, the first victim, an owner of a classic car dealership in Irvine, began communicating with a purported seller of two transmissions. At the seller’s direction, the victim sent more than $13,000 to the God’s Word business account that Uziewe controlled at Ameris Bank. The victim never received the transmissions.

Also in April 2020, the second victim, an owner of a nail salon in Jersey City, New Jersey, sent more than $100,000 to Uziewe’s Ameris Bank account. She sent the funds to assist the return to the United States of an individual who claimed he was a surgeon working for the United Nations in Yemen and needed money to pay for costs associated with traveling to the United States.

When Uziewe attempted to withdraw the funds from the God’s Word account, he falsely claimed that they were proceeds of book sales.

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

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

SACRAMENTO, Calif. — Angela Stubblefield, 49, of Tacoma, Washington, was sentenced today by U.S. District Judge Kimberly J. Mueller to two years and six months in prison and ordered to pay $219,871 in restitution for a disability benefits fraud and identity theft scheme, U.S. Attorney McGregor W. Scott announced.

According to court documents, between June 14, 2013, and May 1, 2017, Stubblefield and co‑defendant Katherine Decker participated in a scheme to defraud the State of California by filing fraudulent claims for disability insurance benefits with the California Employment Development Department (EDD). In furtherance of the scheme, Decker and Stubblefield used Decker’s position as an employee with the EDD to file fraudulent claims for disability benefits and to fraudulently extend existing disability claims, using the names and identities of real persons with and without their knowledge. In total, the conspiracy resulted in 15 fraudulent disability claims, resulting in a loss to the EDD of approximately $373,566.

“EDD employees rigorously work to protect the confidentiality of our claimant’s information and the integrity of the Disability Insurance program for Californians in need,” said EDD Director Sharon Hilliard. “We are grateful for the partnership of our federal and state partners in prosecuting any violator of that policy to the fullest extent of the law.”

This case was the product of an investigation by EDD’s Investigation Division and the Federal Bureau of Investigation. Assistant U.S. Attorneys Shea J. Kenny and Amy S. Hitchcock prosecuted the case.

Stubblefield was ordered to report to begin service of her sentence by Feb. 1, 2021. On Sept. 14, Stubblefield’s co-defendant Katherine Decker was sentenced by Judge Mueller to three years and seven months in prison for the disability benefits fraud and identity theft scheme.

SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against two Stockton residents and alleged members of the Everybody Killa (EBK) street gang, charging them with conspiring to deal firearms without a license and other charges, U.S. Attorney McGregor W. Scott announced.

Johnnie Earl Ross Jr., 20, is charged with conspiring to deal firearms without a license, dealing firearms without a license, and possession of an unregistered machine gun. Vin Whealen Gaines Jr., 32, is charged with conspiring to deal firearms without a license, dealing firearms without a license, two counts of being a felon in possession of a firearm, and distribution of methamphetamine.

According to court documents, between Oct. 10, 2019, and Oct. 22, 2020, Ross and Gaines sold at least 13 firearms to an undercover agent or confidential source on behalf of the EBK street gang in Stockton. Many of the firearms were obtained out of state, in Reno, Nevada, and some were obtained by a straw purchaser from federally licensed firearms dealers in Reno. One of the firearms was a Glock handgun with a switch that converted it to a fully automatic firearm. Gaines has prior felony convictions, making it illegal for him to possess a firearm.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; and the San Joaquin County Sheriff’s Office. Assistant U.S. Attorney David W. Spencer is prosecuting the case.

This case is part of an investigation by an Organized Crime Drug Enforcement Task Force (OCDETF), a prosecutor-led, intelligence-driven, multi‑agency task force that leverages the authorities and expertise of federal, state, and local law enforcement.

The charges carry the following penalties: a maximum statutory penalty of five years in prison and a fine of up to $250,000 for conspiracy to deal firearms without a license; a maximum of five years in prison and a fine of up to $250,000 for dealing firearms without a license; a maximum of 10 years in prison and a fine of up to $10,000 for possession of an unregistered machine gun; a maximum of 10 years in prison and a fine of up to $250,000 for being a felon in possession of a firearm; and a maximum statutory penalty of 20 years in prison and a fine of up to $1 million for methamphetamine distribution. 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.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.

SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced two Mexican nationals today for a conspiracy to cultivate marijuana, marijuana cultivation in the Shasta-Trinity National Forest, and depredation of federal lands and resources, U.S. Attorney McGregor W. Scott announced.

Armando Vargas Garcia, 38, of Mexico, and Eduardo Montero Aleman, 38, of Puerto Vallarta, Mexico, were each sentenced to 21 months in prison and ordered to pay $34,931 in restitution for the damage caused to the land by the cultivation in the National Forest.

According to court documents, between Aug. 29 and Sept. 5, the defendants were involved in the cultivation of 8,656 marijuana plants in the Big Mountain area in Shasta-Trinity National Forest. Two compound archery bows, nine arrows, and 42 rounds of hollow-point .22-caliber ammunition were discovered on the site. Officers also discovered bottles of carbofuran, a toxic pesticide, which is banned in the United States.

This case was the product of an investigation by the U.S. Forest Service, the Trinity County Sheriff’s Department, the California Department of Fish and Wildlife, and the Trinity County District Attorney’s Office. Assistant U.S. Attorney Adrian T. Kinsella prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Damion Jay Phillips, 42, of Chester, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.

According to court documents, on July 12, Phillips was arrested following a traffic stop in Lassen County. He was found in possession of a 9 mm handgun. Phillips has several prior felony convictions for burglary, drug offenses, attempted arson, and a prior conviction for illegally possessing a firearm that prohibit him from possessing firearms.

This case is the product of an investigation by the Lassen County District Attorney’s Office, the California Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Aaron D. Pennekamp is prosecuting the case.

If convicted, Phillips 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.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.

FRESNO, Calif. — Francisco Javier Ochoa-Anaya, 49, residing in Denair, was sentenced today by U.S. District Judge Dale A. Drozd to 26 years in prison for conspiring to distribute methamphetamine and possessing a gun in furtherance of a drug trafficking offense, U.S. Attorney McGregor W. Scott announced.

“Methamphetamine continues to be a scourge in California with devastating consequences to drug users and our communities,” said U.S. Attorney Scott. “Today’s sentence marks an end to this defendant’s long criminal history in the United States and Mexico. The U.S. Attorney’s Office and our law enforcement partners will not waver in our resolve to end the scourge of illegal drugs flooding our neighborhoods.”

According to court documents, on Sept. 3, 2019, Ochoa received a shipment of approximately 118 pounds (54 kilograms) of methamphetamine. Ochoa enlisted the aid of co-defendant Victoria Rodriguez to assist him in weighing and packaging the methamphetamine. On Sept. 5, 2019, agents seized the methamphetamine during a search of Ochoa’s vehicle. In addition, agents seized a cooler stored with the methamphetamine that contained one kilogram of cocaine, five loaded firearms, a bulletproof vest, several high capacity magazines, a substance used to dilute the drugs, and a digital scale.

This case was the product of an investigation by the Drug Enforcement Administration and Sheriff’s Special Investigations Unit, composed of agents from the Stanislaus County Sheriff’s Department, the California Highway Patrol, the Stanislaus County District Attorney’s Office, Stanislaus County Probation, and the Ceres Police Department. Assistant U.S. Attorney Kathleen A. Servatius prosecuted the case.

Victoria Rodriguez is in custody serving a 30-month sentence.

FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Angelo Frank Salaz, 31, of Los Banos, charging him with being a felon in possession of ammunition, U.S. Attorney McGregor W. Scott announced.

According to court documents, on May 19, officers attempted to stop Salaz for traffic violations, including no front license plate and expired registration tags. Salas fled, however, running stop signs and driving on the wrong side of the street. Once the vehicle came to a stop, Salaz ran from the vehicle but was apprehended by the officers. When Salaz was searched, officers found .40‑caliber ammunition in his pockets and a loaded .40‑caliber handgun in the car under the driver’s seat. Salaz had been convicted of burglary in 2014, and in 2019, was convicted for being a felon in possession of a firearm.

This case is the product of an investigation by the Federal Bureau of Investigation, Los Banos Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (BATFE). Assistant United States Attorney Laurel J. Montoya 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.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.

This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF is the largest anti-crime task force in the country, and its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States. The prosecutor-led, intelligence-driven, multi‑agency task force leverages the authorities and expertise of federal, state, and local law enforcement.

 

FRESNO, Calif. — As part of an ongoing concerted effort by local and federal law enforcement to address the significant uptick in violent crime in the City of Fresno, a federal grand jury returned indictments today against two Fresno residents with being a felon in possession of either a firearm or ammunition, U.S. Attorney McGregor W. Scott announced.

“We are fully committed to working with local law enforcement in the City of Fresno and Fresno County to reduce violent crime there,” said U.S. Attorney Scott. “Both defendants charged today have multiple felony convictions including firearms related ones. In short order, six men have been indicted and face federal charges in support of this effort by law enforcement to reduce violence. We’ve just gotten started, and we’re not going away.”

Lane Kelly Whittenberg, 32, was charged with one count of being a felon in possession of a firearm. According to court documents, on Oct. 27, Whittenberg was involved in a verbal dispute at a restaurant and was observed to be in possession of a firearm. As police approached the location, they heard two gun shots, later determined to be fired by Whittenberg. Inside Whittenberg’s car, police saw a handgun on the front passenger seat. Whittenberg has been convicted of reckless evading of a peace officer and robbery in 2014, and possession of a firearm by a felon in 2018.

This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fresno Police Department. Assistant U.S. Attorney Antonio J. Pataca is prosecuting the case.

Simon Meza Jr., 38, was charged with one count of being a felon in possession of ammunition that was found in his loaded gun. According to court documents, Meza was driving while not wearing his seatbelt, and officers tried to conduct a traffic stop. Meza continued to drive, at times recklessly. Officers discontinued the pursuit but later located Meza’s vehicle abandoned at a business on South Sarah Avenue. They found Meza hiding in a nearby park. Meza was allegedly seen discarding a bag containing a loaded firearm and a wallet with Meza’s California identification card inside. According to Fresno County Superior Court records, Meza has multiple prior convictions for illegal weapons and drug possession.

This case is the product of an investigation by Homeland Security Investigations, the Fresno Police Department, and the Fresno County Sheriff’s Office. Special Assistant U.S. Attorney Philip Tankovich is prosecuting the case.

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

These cases are 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.

These cases are also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.