Eastern District of California

A Colorado man was sentenced today by U.S. District Court Judge Dale A. Drozd to 11 years in prison.

According to court documents, Bryan Connor Herrell, 26, of Aurora, Colorado, was a moderator on the AlphaBay marketplace, an illegal website that operated on the so-called darknet.  On AlphaBay, vendors and purchasers engaged in hundreds of thousands of illicit transactions for guns, drugs, stolen identity information, credit card numbers and other illegal items.  At the time, AlphaBay was the world’s largest online drug marketplace.

“This sentence of an AlphaBay employee demonstrates the collective efforts of law enforcement authorities in the United States and Europe to find and prosecute transnational criminal actors wherever they hide,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.  “The department will continue to work tirelessly to hold accountable criminals who use the Dark Web to facilitate illegal activity no matter where they may be located.”

“This sentence serves as further proof that criminals cannot hide behind technology to break the law,” said U.S. Attorney McGregor Scott of the Eastern District of California.  “Operating behind the veil of the darknet may seem to offer shelter from criminal investigations, but people should think twice before ordering or selling drugs online—you will be caught.  This office will continue using all means available to pursue darknet-based crimes, particularly those involving fentanyl, opioids, and other dangerous drugs.”

“The FBI is committed to developing highly trained cyber investigators who work with our international partners and perpetually evolve to counter the threat darknet criminals pose.  Cases like these exemplify how the FBI and our international partners are eliminating the false promise of anonymity dark marketplaces claim to provide and are successfully dismantling criminal organizations which prey upon communities through use of sophisticated computer code,” said Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office.  “Herrell's sentence sends a clear message to criminals that the darknet is no safe haven for illegal transactions.”

As a moderator on AlphaBay, Herrell settled disputes between vendors and purchasers. He is also served as a scam watcher – providing a service dedicated to monitor attempts to defraud AlphaBay users.  Herrell went by the monikers “Penissmith” and “Botah” and was paid in Bitcoin for his participation.

On June 1, 2017, a Fresno grand jury indicted the alleged founder of AlphaBay, Alexandre Cazes.  On July 5, 2017, the Royal Thai Police, with assistance from the FBI and DEA, executed an arrest warrant for Alexandre Cazes at his residence in Bangkok, in connection with his alleged involvement with AlphaBay.  At the time of his arrest, law enforcement discovered Cazes’s laptop open and in an unencrypted state.  Agents and officers found several text files that identified the passwords/passkeys for the AlphaBay website, the AlphaBay servers, and other online identities associated with AlphaBay.  The indictment against Cazes was dismissed as a result of his death.  The investigation of AlphaBay and its former administrators continues.

The FBI’s Sacramento and Philadelphia Field Offices investigated this case.  Senior Counsel Louisa K. Marion of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Paul Hemesath and Grant B. Rabenn are prosecuting the case.  The Philadelphia and Denver U.S. Attorney’s Offices provided substantial assistance.

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

SACRAMENTO, Calif. — A former PG&E employee pleaded guilty today to one count of conspiracy to commit honest services wire fraud and admitted to receiving kickback payments from a Stockton transportation company owned by his cousin, U.S. Attorney McGregor W. Scott announced.

According to the plea agreement, Ronald S. Schoenfeld, 65, of Goodyear, Arizona, formerly of Dublin, California, while employed at Pacific Gas and Electric Company, conspired to obtain contracts from PG&E for his cousin’s transportation business in exchange for kickbacks from that business worth approximately 2.5% of the value of the contracts. Schoenfeld concealed from PG&E his familial relationship with his co-conspirator from PG&E, provided confidential information to his co-conspirator, and, at times, directly intervened in the consideration of contracts between PG&E and his co-conspirator’s business, all contrary to PG&E’s policies.

From March 2007 through February 2015, PG&E paid at least $82.1 million to the business operated by Schoenfeld’s cousin for services it provided pursuant to PG&E contracts. During the same period, Schoenfeld’s co-conspirator paid him at least $1,476,000 in kickbacks for his role in the conspiracy.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys André M. Espinosa, Amy S. Hitchcock, and Tanya B. Syed are prosecuting the case.

Schoenfeld is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on November 16, 2020. Schoenfeld faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Jesus Gonzalez, 29, of Bakersfield, California was sentenced to 188 months in prison for distributing methamphetamine, in violation of 21 U.S.C. § 841, United States Attorney McGregor W. Scott announced. 

According to court documents, from April to May 2019, Gonzalez distributed pound quantities of methamphetamine during separate transactions. Gonzalez pled guilty to a two-count indictment on February 20, 2020. In his written plea agreement, Gonzalez acknowledged selling five pounds of methamphetamine on April 10 and 17, 2019 and on May 3, 2019. He was detained as of the date of his guilty plea.    

 This case is the product of an investigation by the Homeland Security Investigations (HSI), and the Bakersfield Police Department. Assistant U.S. Attorney Thomas Newman is prosecuting the case.    

FRESNO, Calif. — Orlando Gillam, 46, of Fresno, pleaded guilty Thursday to mail fraud in connection with false claims he submitted to public and private health insurers, U.S. Attorney McGregor W. Scott announced.

According to court documents, Gillam is the founder and CEO of Dunamis Inc. Group Home, a nonprofit that provided services that included alcohol and drug treatment and counseling. Between January 2016 and January 2018, Gillam falsely billed insurers hundreds of thousands of dollars for alcohol and drug treatment and counseling, mental health treatment, and group and individual psychotherapy purportedly rendered to multiple individuals. Those individuals did not receive the services billed, and several of them were not Dunamis clients at all.

This case is the product of an investigation by the Federal Bureau of Investigation, the Office of Personnel Management Office of Inspector General, and the U.S. Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Vincente A. Tennerelli is prosecuting the case.

Gillam is scheduled to be sentenced on Nov. 20. He faces a maximum statutory penalty of 20 years in prison and a $$250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Antonio Tawan Bankhead, 32, of Fairfield, was sentenced Thursday by U.S. District Judge Troy L. Nunley to three years and 10 months in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.

Bankhead was convicted of the same crime in Sacramento federal court in 2015. He violated his federal probation in that case when he committed this new offense.

According to court documents, on the evening of Oct. 11, 2019, police responded to the area of Laurel Creek Park to a report of a potential robbery involving three individuals, one of whom had a gun. As police arrived, Bankhead ignored commands to stop and began to walk away. As more police arrived and tried to cut off his path, Bankhead changed direction and started to sprint, climbing over a fence onto a baseball field. After a pursuit by officers and a police dog, Bankhead was caught in the bushes of a house across from the park, and a gun and phone he had been carrying were found on the baseball field, which was fenced in and closed to the public. The gun, a Glock Model 19 9 mm pistol, had a 30-round extended magazine, and was loaded with 30 live 9 mm rounds and one round in the chamber. Bankhead cannot lawfully possess firearms or ammunition because he has previously been convicted of three felony offenses.

This case was the product of an investigation by the Fairfield Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office. Assistant U.S. Attorney Christopher S. Hales 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. — Jeffery Parsons, 44, of Dillon, Montana, was sentenced on Monday by U.S. District Judge Kimberly J. Mueller to one year in prison for conspiring to accept illegal gratuities on account of official actions and conspiring to sell government property without authority. Judge Mueller also ordered Parsons to forfeit to the United States over $230,000.

According to court documents, Parsons was a civilian employee of the U.S. Department of Defense. In November 2009, Parsons began working as an Environmental Protection Specialist at Sierra Army Depot in Herlong, California (SIAD). He later held the same position at Naval Air Station Lemoore in Lemoore, California (NASL). In his official positions at SIAD and NASL, Parsons’ responsibilities included the disposition of hazardous materials such as batteries, fuel and oil.

In October 2012, Parsons, his wife, and their associate Travis Wong agreed that Parsons would use his authority at SIAD to allow Wong to sell valuable materials from the installation and that, in return, Wong would pay Parsons and his wife a portion of his proceeds from the sales. After Parsons transferred to NASL, Parsons, his wife, and Wong continued their illegal scheme. Just as Parsons had done at SIAD, he abused his authority at NASL by allowing Wong to sell materials removed from the U.S. Navy base. Once again, Wong paid Parsons and his wife a portion of his proceeds from the sales. In total, Wong received approximately $314,000 from selling government property, and he paid Parsons and his wife approximately $56,000. Wong made the illegal payments by checks payable to a company registered to Parsons’ wife, as well as checks payable to Parsons’ daughter.

While carrying out their illegal scheme with Wong, Parsons and his wife also began a separate scheme. Specifically, Parsons allowed his wife to sell materials from SIAD to third-party recycling companies. Parsons’ wife falsely represented to those companies that she and her company had a contract with SIAD or were otherwise authorized by SIAD to sell the recyclers materials removed from the installation. In total, the recycling companies collectively paid Parsons’ wife approximately $175,000.

On March 16, Judge Mueller sentenced Wong to three years of probation and ordered him to forfeit to the United States approximately $314,000.

This case is the product of an investigation by the Defense Criminal Investigative Service and the U.S. Army Criminal Investigation Command. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.

SACRAMENTO, Calif. — Jack Ray Snyder, 63, of Truckee, pleaded guilty today to one count of tax evasion, U.S. Attorney McGregor W. Scott announced.

According to the plea agreement, Snyder failed to report significant income for tax years 2011, 2012, 2013 and 2014. Each year, Snyder underreported his income to his tax preparer and took deductions for expenses that were not deductible business expenses. For the 2011 tax year, Snyder earned outside income as an equine veterinarian in addition to his salary as a professor at the University of California, Davis. He endorsed outside client payment checks to directly pay credit card bills. He failed to report $212,953 in income for the 2011 tax year. According to the plea agreement, the additional tax due for 2011, 2012, 2013, and 2014 tax years was $134,497.

This case is the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Roger Yang is prosecuting the case.

Snyder is scheduled to be sentenced by U.S. District Judge William B. Shubb on Nov. 16. Snyder faces a maximum statutory penalty of five years in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — A Sacramento couple pleaded guilty today to conspiring to defraud the United States by submitting false claims for income tax refunds to the Internal Revenue Service, U.S. Attorney McGregor W. Scott announced.

According to court documents, between March 29, 2012 and Feb. 14, 2015, William Bennett, 42, and Christina Bennett, 38, conspired with Bridget Coilton, 50, also of Sacramento, to defraud the IRS by submitting false claims for income tax refunds for themselves and for others.

According to the plea agreements, Coilton allegedly provided William Bennett with personally identifying information (PII) of other people, and he would file tax returns for those people claiming false, inflated tax refunds based on false statements he added to the returns. The false returns usually fell into similar categories and contained similar false claims. For example, the tax returns filed as a part of the conspiracy contained false and fraudulent statements regarding employment, income, withholdings from income, and dependency exemptions. Some of the federal tax returns also sought tax credits to which the individuals on the returns were not entitled, such as the American Opportunity Credit.

The fraudulent statements resulted in refunds that were often directed to be deposited into bank accounts the Bennetts or Coilton controlled. After the IRS issued the refunds, the co‑conspirators divided the proceeds amongst themselves, sometimes providing the tax filer with a small portion of the refund. If the refund was deposited into one of the Bennett’s bank accounts, Christina Bennett would often withdraw some of the tax refunds deposited in cash and then deliver the withdrawals to Coilton.

The charges against Coilton are pending. She is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

William Bennett and Christina Bennett are scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Dec. 7. They each face a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime by focusing on firearms prosecutions, U.S. Attorney McGregor W. Scott announced that a federal grand jury returned indictments in the following cases involving illegal firearms offenses.

Brian Zamora, 28, of Fresno, was charged Thursday with being a felon in possession ammunition. According to court documents, on Aug. 12, law enforcement officers observed Zamora, whom they knew to have a warrant for a parole violation, place a bag in a car and then enter the car. They stopped the car, arrested Zamora, and found a loaded AR-style semi-automatic handgun with no serial number, known as a “ghost gun,” equipped with a 30-round high-capacity magazine, along with a laser sight, and a pressure switch for the laser. The gun and the magazine were loaded with 10 total rounds of a mix of .233‑caliber and 5.56 mm ammunition. Zamora has eight prior felony convictions in Fresno County and is prohibited from possessing either a firearm or ammunition. This case is the product of an investigation by the Multi-Agency Gang Enforcement Task Force (MAGEC), including Fresno Police Department and California Highway Patrol; the FBI; the California Department of Corrections and Rehabilitation; the Fresno County Sheriff’s Office; and the Fresno Police Department.
(1:20-cr-140)

Adrian Perez, 38, of Wasco, was charged Aug. 13 with being a felon in possession of ammunition, According to court documents, on Jan. 6, law enforcement officers initiated a traffic stop and discovered that Perez possessed an antique handgun and ammunition. Perez has four prior felony convictions in Kern County and is prohibited from possessing ammunition. This case is the product of an investigation by the Kern County Sheriff’s Office and the FBI.
(1:20-cr-133)

Fernando Manjarrez, 33, of Turlock, was charged on July 30 with being a felon in possession of ammunition. According to court documents, on Nov. 15, 2019, law enforcement officers discovered that Manjarrez possessed 9 mm ammunition. Manjarrez has three prior felony convictions in Stanislaus County and is prohibited from possessing ammunition. This case is the product of an investigation by the Turlock Police Department, the FBI, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. (1:20-cr-124-DAD)

Assistant U.S. Attorney Laura Jean Berger is prosecuting the three cases.

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

These cases are 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 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.

FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Eleno Fernandez-Garcia, 36, a native and citizen of Mexico, charging him with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, and damaging public lands and natural resources, U.S. Attorney McGregor W. Scott announced.

According to court documents, the cultivation operation consisted of over 1,000 marijuana plants and was located in the Basin Creek drainage in the Stanislaus National Forest in Tuolumne County. Fernandez was found at the grow site in possession of pruning shears and two cellphones covered with marijuana debris. The cultivation operation is alleged to have caused significant damage to the environment. The area is near recreational activities and a natural spring used for bottled water.

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

Fernandez-Garcia is scheduled for arraignment on the indictment on August 21. If convicted of the drug conspiracy and manufacturing offenses, he faces a mandatory minimum statutory penalty of 10 years and a maximum penalty of life in prison, as well as a $10 million fine. The environmental charge carries a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. In addition, the defendant may be liable for restitution to the U.S. Forest Service for damage sustained to the land and natural resources as a result of the cultivation activities. 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. — Paola Bedoy, 65, of Stockton, was sentenced today by U.S. District Judge Kimberly J. Mueller to five years in prison for eight counts of preparing fraudulent tax returns, U.S. Attorney McGregor W. Scott announced.

According to court documents and evidence presented at a jury trial, for years Bedoy ran a tax preparation business in Stockton called Javez Enterprises. Bedoy repeatedly encouraged and assisted her clients in preparing fraudulent federal income tax returns by claiming earned income credits and child tax credits based upon dependents who were not eligible for those credits. For example, Bedoy falsely listed a child as disabled when he was not, put dependents on returns that her clients didn’t even know to fraudulently boost refunds, and repeatedly sought tax credits based on noncitizen children living in Mexico who Bedoy knew did not qualify for those tax credits. In one instance caught on video, Bedoy suggested the fraud to a client so that the client could afford to pay her fee and then tripled her fee to that client. Bedoy also admitted to investigators that she “bought” children to add to clients’ tax returns to inflate their refunds, and sometimes kept the inflated portion of the refunds for herself.

While Bedoy initially claimed she committed some of this fraud to help her family, during the time she committed the fraud, Bedoy gambled extensively at area casinos, losing over $130,000 during a period that she reported only $67,000 in income on her own personal federal income tax returns. Bedoy testified in her own defense at trial and received a sentencing enhancement for obstruction of justice after the court determined that Bedoy gave materially false testimony. In the aggregate, Bedoy filed hundreds of tax returns with the IRS seeking refunds in the millions of dollars.

Bedoy was ordered to report to begin service of her sentence by 2:00 p.m. on Oct. 19. This case was the product of an investigation by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Christopher S. Hales prosecuted the case.

FRESNO, Calif. — Erick Lizarraga, 30, of Fresno was sentenced today to 15 years and eight months in prison for conspiring to traffic methamphetamine, U.S. Attorney McGregor W. Scott announced.

According to court documents, Lizarraga and his co-conspirators trafficked large quantities of methamphetamine in the Fresno-Madera area, as well as sending methamphetamine to Denver, Colorado. Lizarraga arranged two shipments to Denver that were seized by law enforcement. Thus far in the case:

• Diblaim Valdez-Araux, 33, of Madera, pleaded guilty and was sentenced to nine and a half years in prison;
• Jesus Bueno, 29, of Fresno, pleaded guilty and was sentenced to 11 years and eight months in prison;
• Rosemarie Martinez, 66, of Fresno, pleaded guilty and was sentenced to three years in prison;
• Perla Ramos, 31, David Martinez, 68, and Brittany Martinez, 28, all of Fresno, pleaded guilty and are scheduled for sentencing on Sept. 18, 2020.
• Charges are pending against Fresno residents Noyra Gonzalez, 41; and Maricela Castellanos, 54. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

On Oct. 13, 2018, David Martinez and Rosemarie Martinez had 30 pounds of methamphetamine with them that they were taking to Denver via Amtrak. On Oct. 15, 2018, after Lizarraga arranged for Diblaim Valdez-Araux to get another 30 pounds of methamphetamine. Noyra Gonzalez and Maricela Castellanos were arrested while taking the 30 pounds to Denver after their car was stopped and searched by the California Highway Patrol. Jesus Bueno purchased approximately 20 pounds of methamphetamine from Lizarraga that he sold to customers in the Fresno area. On Nov. 4, 2018, Valdez-Diblaim was stopped in Selma by law enforcement officers with approximately 54 pounds of methamphetamine while returning from the Los Angeles area. Perla Ramos and Brittany Martinez assisted Lizarraga in delivering drugs and collecting profits.

This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Drug Enforcement Administration, Federal Bureau of Investigation, Fresno County Sheriff’s Department, California Highway Patrol, and Homeland Security Investigations. Assistant U.S. Attorneys Laurel J. Montoya, Stephanie Stokman and Thomas Newman are prosecuting the case.

The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

UPDATE

Pursuant to a motion by the government, the case against defendant Juan Tang described in the news release below was dismissed by the court on July 23, 2021.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Juan Tang, 37, of Xi’an, China, charging her with visa fraud and making false statements to the FBI, U.S. Attorney McGregor W. Scott announced.

Arraignment is set for Aug. 10 at 2:00 PM before U.S. Magistrate Judge Edmund F. Brennan.

According to court documents, Tang is alleged to have possessed a non-immigrant J-1 visa that she obtained by making false statements during the application process about her military service. When later interviewed by FBI agents, Tang also made false statements about her military service. Specifically, it is alleged that Tang is a current member of the Chinese military and falsely claimed that she had not served in the military.

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the U.S. Department of State’s Diplomatic Security Service, San Francisco Field Office. Assistant U.S. Attorney Heiko P. Coppola is prosecuting the case.

If convicted of visa fraud, Tang faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted of making false statements, Tang faces a maximum statutory penalty of 5 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.

FRESNO, Calif. — Jonathan James Rodriguez, 37, of Sonora, was arraigned Tuesday for receipt and distribution of material involving the sexual exploitation of minors, U.S. Attorney McGregor W. Scott announced.

According to court documents, between January 2014 and January 2020, Rodriguez used a laptop computer to receive and distribute a visual depiction of a minor engaged in sexually explicit conduct.

Anyone who has information related to this investigation or who believes they may be a victim can contact the FBI at JonRVictims@fbi.gov.

This case is the product of an investigation by the Federal Bureau of Investigation and the Tuolumne County Sheriff’s Office. Assistant U.S. Attorney Laura D. Withers is prosecuting the case. 

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

This case 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. — Jeremy Elguez, 32, of Chico, pleaded guilty today to burglarizing 10 post offices, U.S. Attorney McGregor W. Scott announced. 

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 is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Tanya B. Syed is prosecuting the case.

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

FRESNO, Calif. — A Modesto couple was indicted today by a federal grand jury for conspiracy to distribute methamphetamine and heroin, U.S. Attorney McGregor W. Scott announced.

Jose Juan Garcia-Herrera, 59, and Lupe Aime Busio-Valencia, 41, were charged with conspiracy to distribute methamphetamine and heroin and with possession of methamphetamine and heroin with intent to distribute.

According to court documents, during the investigation, detectives observed Garcia-Herrera transferring items from a residence to an area under the driver’s seat of a vehicle. During a subsequent stop of the vehicle driven by Garcia-Herrera and accompanied by Busio-Valencia, detectives seized 10 pounds of methamphetamine and 3 kilograms of heroin. When a search warrant was executed at their residence, agents found evidence methamphetamine powder being converted to a crystal from inside the residence. During the search, agents also seized a firearm and $38,000 that was found in the bedroom.

This case is the product of an investigation by the Modesto Police Department and Homeland Security Investigations. Assistant U.S. Attorney Kathleen A. Servatius is prosecuting the case.

If convicted, both defendants face a maximum statutory penalty of life in prison, a $10 million fine, and forfeiture of the $38,000 seized during the search. 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. — Two California residents separately charged with defrauding FEMA by filing false claims for benefits offered to certain victims of the November 2018 Camp Fire plead guilty to fraud in connection with a major disaster or emergency benefits, U.S. Attorney McGregor W. Scott  announced.

Daniel Connelly, 55, of Forest Ranch, entered a guilty plea today. According to court documents, on Jan. 16, 2019, Connelly filed a false application for FEMA benefits. In his application, Connelly falsely claimed a Paradise residence, which had been damaged by the Camp Fire, as his primary residence. Connelly knew his claim was false at the time he applied for FEMA benefits because he had vacated the residence months prior to the fire after a bank initiated eviction proceedings. At the time of the Camp Fire, the residence was vacant and listed for sale. As a result of Connelly’s false statement in his application for FEMA benefits, he received $2,663 to assist with rent and the replacement of personal property.

Patrick Prigmore, 54, of Redding, pleaded guilty in a separate criminal case on July 23. According to court documents, on Dec. 3, 2018, Prigmore filed an application for FEMA benefits falsely claiming the same Paradise residence as his primary residence that Connelly had claimed when in fact Prigmore had never resided at the address. In support of his application, Prigmore submitted photographs of counterfeit utility bills, which falsely indicated that he had received utilities at the residence. As a result of the false statement made in his application for FEMA benefits, Prigmore received $12,837 for rental assistance and the replacement of personal property, as well as approximately nine months of free housing in a trailer provided by FEMA.

These cases are the product of an investigation by the Department of Homeland Security Office of the Inspector General with assistance from the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting both cases.

Connelly is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Oct. 15. Prigmore is scheduled to be sentenced by U.S. District Judge John A. Mendez on Oct. 27. Both Connelly and Prigmore each face a maximum statutory penalty of 30 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — A Corning woman was arrested in Dublin today for a refund‑fraud scheme, U.S. Attorney McGregor W. Scott announced.

The warrant was issued last week after a federal grand jury returned a 14-count superseding indictment against Sabrina Raylene Toilolo, 26, and her previously charged co-defendant Johnathon Ward, charging them with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft.

According to court documents, Sabrina Toilolo and co-defendants Johnathon Ward, Monica Nunes, and Talalima Toilolo conspired to defraud financial institutions using a refund-fraud scheme. This scheme exploited the refund process used by businesses and retail establishments to pay back customers for returns, reimbursements, and erroneous charges. The defendants posed as merchants and executed fraudulent debit or credit card refunds, which caused the unauthorized transfer of money from a merchant bank account to an account under the defendants’ control.

The defendants committed this scheme by stealing or purchasing point-of-sale (POS) terminals used by businesses to process bankcard transactions. The defendants programmed each terminal to make it appear as if it was authorized by a particular merchant, connected the terminals to payment processing intermediaries, and executed refund transactions even though no purchases had been made. The payment processors, falsely believing the terminals were authorized, approved the refunds and caused the merchants’ banks to transfer funds to the defendants’ accounts. The defendants then drained the stolen funds from the accounts. The indictment alleges that this scheme caused at least $3.5 million in intended victim losses.

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

Nunes and Talalima Toilolo have pleaded guilty in the case and have been detained pending sentencing. Charges against Ward are pending.

If convicted, Sabrina Toilolo faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of wire fraud and conspiracy to commit wire fraud. Additionally, if convicted of aggravated identity theft, she faces a mandatory two-year prison sentence, to be served consecutive to any other sentence, and an additional $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; Ward and Sabrina Toilolo are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Kulvir Singh Cheema, 59, of Ripon, pleaded guilty today to filing a false bankruptcy declaration, U.S. Attorney McGregor W. Scott announced.

According to court documents, when Cheema, the owner of a trucking company, filed for bankruptcy in April 2011, he provided false information about his employment, income, residence, and other facts. He also concealed certain assets such as trucks and bank accounts that he controlled and that were held in other names. In addition, in January 2010, in contemplation of filing for bankruptcy, Cheema fraudulently transferred ownership of his residence in Ripon from himself to another person. Cheema’s untruthful statements on his bankruptcy petition were designed to give the false impression that he was bankrupt with no assets. Through those falsehoods, Cheema was able to discharge over $2 million in debt, keep his trucks and business running, and repay a close friend. The value of the debts and assets concealed as a result of Cheema’s deception was between $150,000 and $250,000.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Brian A. Fogerty, André M. Espinosa, and Miriam Hinman are prosecuting the case.

Cheema is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on Oct. 22. Cheema faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — A Fresno business owner was arraigned today for a scheme to defraud the customers of his classic car business, U.S. Attorney McGregor W. Scott announced.

On July 23, a federal grand jury returned a 22-count indictment against Jeffrey Scott Hedges, 48, currently residing in Irvine, charging him with wire fraud and money laundering.

According to court documents, Hedges owned and operated West Coast Chassis LLC. Between November 2015 and January 2019, Hedges advertised his business online as one dedicated to the restoration of classic cars likes Corvettes, Camaros, and others. However, instead of providing the promised chassis and modifications to the vehicle frames that his customers sent him, Hedges kept the money and failed to provide the promised product. Hedges allegedly defrauded his customers out of more than $600,000.

Anyone who has information related to this investigation or who believes they may be a victim can contact the FBI at 916-746-7000.

This case is the product of an investigation by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.

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

SACRAMENTO, Calif. — KJL Consultants Inc., doing business as Luke’s Yreka Drug, and owner Lucas Walsh have agreed to pay $200,000 to resolve allegations that the pharmacy committed multiple violations of the Controlled Substances Act’s strict recordkeeping requirements, U.S. Attorney McGregor W. Scott announced.

The pharmacy permanently ceased operations in December 2018, and a key term of the settlement agreement included the pharmacy’s surrender of its DEA registration for cause.

The settlement relates to a DEA administrative audit and inspection of Luke’s Yreka Drug in September 2016 during which the DEA identified more than 150 Controlled Substances Act violations including failing to maintain the archived DEA-E-222 form for orders of controlled substances from a distributor, to properly document the quantity and/or date of controlled substances received from a distributor, and to conduct a complete and accurate biennial inventory.

“To prevent diversion of opioids and other dangerous drugs and avoid harm to the public from abuse of these powerful substances, it is critical that all pharmacies, whether they be large national chains or small local stores like Luke’s, ensure that their drug transactions are properly documented, tracked and inventoried,” U.S. Attorney Scott said. “This settlement emphasizes the importance of proper and diligent recordkeeping and the significant penalties to pharmacies that fail to do so.”

“Failure to ensure proper record keeping and accurate inventories of controlled substances allows for potential diversion of powerful prescription drugs,” stated DEA Special Agent in Charge, Daniel Comeaux. “DEA is committed to keeping our communities safe by holding companies like KJL accountable for such deficiencies.”

This settlement resulted from joint efforts of the U.S. Attorney’s Office for the Eastern District of California and the DEA. It was handled by Assistant U.S. Attorney Lynn Trinka Ernce.

The claims resolved by this settlement are allegations only.

SACRAMENTO, Calif. — Alan Hansen, 49, of Vacaville, pleaded guilty Tuesday to his participation in a massive fraud scheme through DC Solar, a solar energy company in Benicia formerly owned and operated by Jeff and Paulette Carpoff, that defrauded investors of approximately $1 billion, U.S. Attorney McGregor W. Scott announced.

Those losses resulted from investment transactions in solar energy hardware valued at approximately $2.5 billion. Hansen also pleaded guilty to aiding and abetting money laundering. Hansen is the seventh person to plead guilty to federal criminal charges relating to the fraud scheme since October 2019. The Carpoffs pleaded guilty to their roles in the fraud conspiracy and other charges in January 2020.

According to court documents, between 2011 and 2018, DC Solar manufactured mobile solar generator units (MSG), solar generators that were mounted on trailers. The company touted the versatility and environmental sustainability of the mobile solar generators and claimed that they were used to provide emergency power to cellphone towers and lighting at sporting and other events. The Carpoffs and their co-conspirators solicited investors by claiming that there were favorable federal tax benefits associated with investments in alternative energy. The conspirators pulled off their scheme by selling solar generators that did not exist to investors, making it appear that solar generators existed in locations that they did not, creating false financial statements, and obtaining false lease contracts, among other efforts to conceal the fraud. In reality, at least half of the approximately 17,000 solar generators claimed to have been manufactured by DC Solar did not exist and DC Solar paid early investors with funds contributed by later investors.

According to court documents, Hansen was an employee of a telecom company with which DC Solar had done business and executed certain contracts. In that role, Hansen accepted $1 million from co-conspirators at DC Solar to fraudulently sign a false contract those co‑conspirators later used to induce investments by victims. Thereafter, Hansen took a job at DC Solar at a significant pay increase and left his former employment. Later, as a DC Solar executive, Hansen and a co-conspirator agreed to share $20,000 to sign a false contract related to the earlier agreement, using a fake name. The conspirators also used that false contract to induce an investment by victims. Hansen was paid for signing the first false contract through a series of interstate wire transfers into an account he set up in the name of a consulting company. Hansen knew the money he was paid came from payments by DC Solar investors, and that DC Solar was deceiving them to induce those payments. Nevertheless, Hansen provided a co-conspirator with information to complete those wire transfers, intending to commit money laundering.

Joseph W. Bayliss, 44, of Martinez, and Ronald J. Roach, of Walnut Creek, each pleaded guilty to related charges on Oct. 22, 2019. Robert A. Karmann, 53, of Clayton, pleaded guilty to related charges on Dec. 17, 2019. Ryan Guidry, 53, of Pleasant Hill, pleaded guilty to related charges on Jan. 14. Jeff and Paulette Carpoff pleaded guilty to related charges on Jan. 24 and are scheduled for sentencing on Nov. 10. The investigation into the fraud remains ongoing.

This case is the product of an investigation by the Federal Bureau of Investigation, IRS‑Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorneys André M. Espinosa and Kevin C. Khasigian are prosecuting the case.

Hansen is scheduled to be sentenced by U.S. District Judge John A. Mendez on Nov. 3. Hansen faces a maximum statutory penalty of 15 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Cameron Andrew Garcia, 26, of Dallas, Texas, was arrested today on a two-count federal indictment charging him with extortion and cyberstalking, U.S. Attorney McGregor W. Scott announced.

According to court documents, Garcia sent Instagram messages to a victim residing in Butte County, threatening to post sexually explicit images and videos of the victim to public websites unless the victim produced new sexually explicit images and videos for him and sent him money.

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

Anyone who has information related to this investigation or who believes they may be a victim can contact the FBI at GarciaVictims@fbi.gov.

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

FRESNO, Calif. — Raymond Cawthorne, 57, of Valley Springs, was sentenced today to five years’ probation for embezzlement of public funds, U.S. Attorney McGregor W. Scott announced.

Cawthorne previously paid $14,000 in restitution and forfeited another $14,000 as part of his sentence.

“Raymond Cawthorne was sentenced today for embezzling funds from a federal rescue program that is still in use today to help homeowners stay in their homes,” said Special Inspector General Christy Goldsmith Romero of SIGTARP. “He is one of 384 defendants convicted of crimes that SIGTARP investigated. We commend the Office of the U.S. Attorney for the Eastern District of California for prosecuting rescue fraud crime investigated by SIGTARP.”

According to court documents, between May 2015 and October 2016, Cawthorne embezzled over $14,000 belonging to the Keep Your Home California (KYHC) Program. The federally funded program was launched in response to the 2008 financial crisis and provided homeowners, who became unemployed, with temporary mortgage assistance so that they could avoid foreclosure and stay in their homes. Participating homeowners became ineligible after they found new employment. The program was part of a broader effort by the federal government to stabilize the nation’s housing market where states with the most distressed markets received federal monies to develop locally tailored foreclosure prevention solutions.

This case was the product of an investigation by the Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), a federal law enforcement agency that targets crime at financial institutions and federally funded housing programs. Assistant U.S. Attorney Joseph Barton prosecuted the case.

FRESNO, Calif. — Liodam Gonzalez, 28, of Bakersfield, pleaded guilty today to unlawful possession of a machine gun and possession of an unregistered firearm, U.S. Attorney McGregor W. Scott announced.

According to court documents, on Aug. 30, 2019, Liodam Gonzalez fired a fully automatic handgun in a residential neighborhood in Bakersfield. At the time of his arrest, Gonzalez was a convicted felon and was member of the West Side Baker criminal street gang. Police officers found and seized the machine gun in Gonzalez’s residence.

This case is the product of an investigation by Homeland Security Investigations and the Bakersfield Police Department. Assistant U.S. Attorney Thomas Newman is prosecuting the case.

Gonzalez is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Oct. 16. Gonzalez faces a maximum 10-year prison term 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.

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.

UPDATE

Pursuant to a motion by the government, the case against defendant Juan Tang described in the news release below was dismissed by the court on July 23, 2021.

Juan Tang, a Chinese national and former researcher at the University of California at Davis, was recently taken into federal custody by the FBI on an arrest warrant and complaint that were filed on June 26, and unsealed on July 20.  Tang is scheduled to make an initial appearance in Sacramento on July 27 at 2:00 PM.

SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment today against Steven Lawrence Robinson, 34, of Granite Bay, and Nathaniel Opondo Hubbert, 39, of Grass Valley, charging them with a conspiracy to possess and distribute fentanyl and other narcotics offenses, U.S. Attorney McGregor W. Scott announced.

According to court documents, between June 2 and June 24, Robinson and Hubbert conspired to distribute fentanyl. Additionally, Robinson is charged with two counts of possession with intent to distribute fentanyl. Hubbert is also charged with possession with intent to distribute methamphetamine and possession with intent to distribute heroin and fentanyl. According to the criminal complaint, the defendants are connected to at least one overdose of a victim who had to be given medical treatment after using drugs purchased from Hubbert.

This case is the product of an investigation by the Drug Enforcement Administration, the Lincoln Police Department, the Placer County District Attorney’s Office, the Placer County Sheriff’s Office, and the Roseville Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

If convicted of the conspiracy count or the counts of possession with intent to distribute fentanyl, or the count of possession with intent to distribute methamphetamine, the defendants face a minimum statutory penalty of five years in prison and a maximum of 40 years in prison and a $5 million fine. The count of possession with intent to distribute heroin and fentanyl carries a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime by focusing on firearms prosecutions, U.S. Attorney McGregor W. Scott announced that a federal grand jury in Fresno returned indictments in the following cases involving illegal firearms offenses.

Anthony Murillo, 37, of Fresno, was charged today with two counts of being a felon in possession of a firearm. According to court documents, on April 17, Murillo possessed a Kahr Arms 9 mm handgun, and on May 15, Murillo was found to be in possession of a Glock 17 handgun and a Mini Draco AK rifle. Among Murillo’s prior felony convictions, three are for being a felon in possession of a firearm. These prior felonies prohibit him from possessing a firearm.

This case is the product of an investigation by the Federal Bureau of Investigation, the Fresno County Sheriff’s Office and the Fresno Police Department.

Brandon Castillo, 36, of Laton, was charged today with one count of being a felon in possession of ammunition. According to court documents, on May 25, Castillo was found to be in possession of .223-caliber ammunition. Castillo has prior felony convictions for assault with a deadly weapon and for being a felon in possession, which prohibit him from possessing ammunition.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Selma Police Department. Assistant U.S. Attorney Stephanie M. Stokman is prosecuting both cases.

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

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 an indictment today against three members of the Mongolian Boys Society, charging them with conspiring to commit murder in aid of racketeering for acting as lookouts for a gang shooting that killed four, U.S. Attorney McGregor W. Scott announced.

According to court documents, Fresno residents Pao Vang, 30; Jhovanny Delgado, 19; and Johnny Xiong, 25, were members of the Mongolian Boys Society (MBS), a criminal organization active in Fresno and Visalia.

According to the indictment, on Nov. 17, 2019, members and associates of the MBS held a meeting and conspired to commit a retaliatory murder. They selected a target residence, chose shooters, provided them with guns, and drove to the target location. Vang, Delgado, and Xiong, who attended the meeting, were designated as lookouts. They positioned themselves on street corners near the target residence to report the presence of law enforcement to the shooters or other gang members. Subsequently, the MBS shooters killed four individuals and injured at least six others.

Vang, Delgado, and Xiong were charged by criminal complaint on Jan. 2 and have been detained in federal custody since that date.

Additionally, on Jan. 2, the Fresno County District Attorney’s Office filed a related felony complaint in the Fresno County Superior Court charging Ger Lee, 27; Anthony Montes, 27; Porge Kue, 26; and Billy Xiong, 25, with special circumstances murder, conspiracy to commit murder, multiple counts of attempted murder, as well as enhancements for personally using and discharging firearms in the commission of the offenses and for committing the crimes for the benefit of, at the direction of, or in association with a criminal street gang.

“Federal and local law enforcement are committed to stopping violent criminal organizations like this one,” said U.S. Attorney Scott. “We will continue to work with our state and federal partners to keep our communities safe from gang violence.”

“In conjunction with the ongoing criminal case in the Fresno County Superior Court, today’s news that a federal grand jury returned an indictment is a testament to the hard work of the Fresno Police Department and that of our federal partners,” said Fresno County District Attorney Lisa Smittcamp. “Collaboratively, we will do all we can to hold to account the perpetrators of this horrific offense and to seek justice for the victims and survivors.”

This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations, the U.S. Marshals Service, the Fresno Police, the Fresno County District Attorney’s Office with assistance from the Fresno County Sheriff’s Office and the Clovis Police Department. Assistant U.S. Attorney Thomas Newman is prosecuting the case.

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

SACRAMENTO, Calif. — As part the U.S. Attorney’s Office for the Eastern District of California’s strategy to reduce violent crime by focusing on firearms prosecutions, U.S. Attorney McGregor W. Scott announced that a federal grand jury in Sacramento returned indictments in the following cases involving illegal firearms offenses.

Michael James White, 37, of Redding, was charged today with being a felon in possession of a firearm. According to court documents, White was arrested on two separate occasions following traffic stops. On Aug. 10, 2019, officers stopped White’s vehicle for a traffic violation and subsequently found a Megastar .45-caliber handgun; and on Nov. 5, 2019, officers again stopped White’s vehicle following a traffic violation and found a Smith & Wesson .357 Magnum tucked into White’s waistband. White has several prior felony convictions—including prior convictions for illegally possessing firearms—that prohibit him from possessing firearms.

This case is the product of an investigation by the Shasta County District Attorney’s Office, the Redding Police Department, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. Assistant U.S. Attorney Aaron D. Pennekamp is prosecuting the case.

Carlos Biviescas, 28, of Vacaville, was charged on July 9 with one count of being a felon in possession of ammunition. According to court documents, Biviescas has two prior felony convictions and is prohibited from possessing ammunition.

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

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

These cases are 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.

UPDATE

The government dismissed all charges alleged in the indictment described in the press release below.

Four individuals have recently been charged with visa fraud in connection with a scheme to lie about their status as members of the People’s Republic of China’s military forces, the People’s Liberation Army (PLA), while in the United States conducting research.  Three of these individuals have been arrested and the Federal Bureau of Investigation (FBI) is seeking the fourth who is a fugitive from justice currently being harbored at the Chinese Consulate in San Francisco.

In addition to these arrests, the FBI has recently conducted additional interviews of visa holders suspected of having undeclared affiliation with the Chinese military in more than 25 American cities.

“These members of China’s People Liberation Army applied for research visas while hiding their true affiliation with the PLA,” said Assistant Attorney General for National Security John C. Demers.  “This is another part of the Chinese Communist Party’s plan to take advantage of our open society and exploit academic institutions.  We will continue to conduct this investigation together with the FBI.”

“The United States welcomes students, academics, and researchers from across the globe. Today’s announcement shows the extreme lengths to which the Chinese government has gone to infiltrate and exploit America’s benevolence," said John Brown, Executive Assistant Director of the FBI's National Security Branch. “In interviews with members of the Chinese People’s Liberation Army in over 25 cities across the U.S., the FBI uncovered a concerted effort to hide their true affiliation to take advantage of the United States and the American people.” 

Each defendant has been charged with visa fraud, in violation of 18 U.S.C. § 1546(a).  If convicted, each faces a maximum statutory penalty of 10 years in prison and a fine of $250,000.  The allegations against each are as follows:

Xin WANG

According to a complaint that was unsealed in the Northern District of California, on June 8, 2020 and court documents filed June 11, Wang entered the United States on March 26, 2019, after receiving a J1 non-immigrant visa in December of 2018.  Wang’s visa application stated that the purpose of his visit was to conduct scientific research at the University of California, San Francisco (UCSF).  Wang is alleged to have made fraudulent statements on this visa application.  Specifically, Wang stated that he had served as an Associate Professor in Medicine in the People’s Liberation Army (PLA), from September 1, 2002 through September 1, 2016.

In reality, when interviewed by officers of Customs and Border Protection (CBP) at LAX on June 7, Wang provided information that he was, in fact, still currently a “Level 9” technician in the PLA, employed by a military university lab.  CBP officers also obtained information that this roughly corresponded with the rank of Major.  According to court documents, Wang was still employed by the PLA while he was studying in the United States, and he made false statements about his military service in his visa application in order to increase the likelihood that he would receive his J1 visa. 

Also according to court documents, Wang provided information to CBP that he had been instructed by his supervisor, the director of his military university lab in the PRC, to observe the layout of the UCSF lab and bring back information on how to replicate it in China.  Wang similarly told his supervising UCSF professor that he had duplicated some of the work of that professor at the lab in China.  Some of the work of the UCSF lab was funded by grants from the United States Department of Health and Human Services, National Institutes of Health (NIH). 

Wang was arrested on June 7, and had his initial appearance on June 8.  A grand jury in the Northern District of California returned an indictment on June 22.

Juan TANG

According to court documents unsealed in the Eastern District of California on July 20, Tang, a researcher at the University of California at Davis, applied for a non-immigrant J1 visa on or about Oct. 28, 2019.  The visa was issued in November 2019, and Tang entered the United States on or about Dec. 27, 2019.  Tang is alleged to have made fraudulent statements on her visa application.  Specifically, to the question, “Have you ever served in the military,” Tang responded “No.”

In fact, Tang is a uniformed officer of the PLA Air Force (PLAAF).  As set forth in the Complaint, the FBI found a photograph of Tang in a military uniform and references to Tang’s employment at the Air Force Military Medical University, which has also been known as the Fourth Military Medical University.  The FBI interviewed Tang on June 20.  Although Tang denied having been a member of the military, an additional photograph of Tang in a different PLA military uniform was found on electronic media seized pursuant to a search warrant.

The FBI is seeking to arrest Tang pursuant to an Arrest Warrant and Complaint that were filed on June 26, and unsealed on July 20.  Tang has sought refuge at the Chinese consulate in San Francisco, where she remains.

Chen SONG

The allegations describing the crime appear in an affidavit supporting the complaint filed on July 17 and unsealed in the Northern District of California on July 20.  According to the affidavit, Song, 38, a Chinese national, applied for a J1 nonimmigrant visa in November 2018.  She entered the United States on Dec. 23, 2018.  In her visa application, in response to the question, “Have you ever served in the military,” Song stated that she had served in the Chinese military only from Sept. 1, through June 30, 2011.  She further stated that her employer was “Xi Diaoyutai Hospital.” Song described herself in her visa application as a neurologist who was coming to the U.S. to conduct research at Stanford University related to brain disease.

The affidavit alleges that these were lies, that Song was a member of the PLA when she entered and while she was in the United States, and that the hospital she listed on her visa as her employer was a cover for her true employer, the PLA.  The affidavit identifies four research articles that she co-authored, which described her as affiliated with institutions subordinate to the PLA Air Force.  Specifically, the articles list Song as affiliated with the Air Force General Hospital in Beijing and the Fourth Military Medical University.  In addition, as of July 13, a Chinese health care website listed Song as an attending physician of the Department of Neurology of the PLA Air Force General Hospital, and included a photograph of Song wearing what appears to be a military uniform.  Further, an article published in 2015 identifies Song as the doctor at the PLA Air Force hospital who performed the autopsy on the former chief physician of the MRI Department at the hospital. 

Finally, according to the affidavit, a search of Song’s external hard drive, recovered pursuant to a court-authorized search warrant, found that, on June 21, Song had deleted a folder titled, in Chinese, “2018 Visiting School Important Information.”  The search recovered deleted documents from this folder.  The affidavit alleges that one of the recovered documents was a letter from Song to the Chinese Consulate in New York, explaining that she was extending her time in the United States for another year, and wrote that her stated employer, Beijing Xi Diaoyutai Hospital, is a false front, which is why she had obtained approval for her extension from the PLA Air Force and FMMU.  The letter further allegedly explained that, as these Chinese military approval documents were classified, she could not transmit them online.

Song was arrested on July 18.  

Kaikai ZHAO 

According to a complaint filed in the Southern District of Indiana on July 17 and unsealed today, Zhao, a graduate student studying machine learning and artificial intelligence at Indiana University, applied for an F1 nonimmigrant visa in June 2018.  In response to the question on the visa application, “Have you ever served in the military,” Zhao answered, “No.”  As set forth in the Complaint, Zhao served in the National University of Defense Technology, the PLA’s premier institution for scientific research and education, which is directly subordinate to the PRC’s Central Military Commission.  Zhao also attended the Aviation University of Air Force (AUAF), which is a Chinese military academy analogous to the U.S. Air Force Academy.  AUAF students are active military service members who receive military training.  In addition, the FBI located an online photograph of Zhao wearing a PLAAF uniform.

Zhao was arrested on July 18.

FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Elias Muhammad, 23, of Fresno, charging him with attempted possession of cocaine with the intent to distribute and two counts of being a felon in possession of a firearm and ammunition, U.S. Attorney McGregor W. Scott announced.

According to court documents, Muhammad was arrested after a vehicle stop on May 5. He was in possession of a firearm and .40 caliber ammunition after having suffered two prior felony convictions. He posted bail on that offense on May 10 and was released from custody. On June 25, Muhammad was again arrested for being a felon in possession of a firearm, attempting to possess cocaine with the intent to distribute, and for being in violation of his federal supervision resulting from a 2019 conviction for being a felon in possession of a firearm.

This case is the product of an investigation by the Clovis Police Department, the Multi-Agency Gang Enforcement Consortium (MAGEC) and the Bureau of Alcohol. Tobacco, Firearms and Explosives. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.

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

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. — U.S. District Judge Dale A. Drozd sentenced Darnell Pearson, 42, of Fresno, today to 30 years in prison for two counts of distribution of fentanyl resulting in death and serious bodily injury, U.S. Attorney McGregor W. Scott announced.

“This defendant sold what his customers thought was cocaine that was, in fact, fentanyl and caused the deaths of two people and serious injury to two others,” U.S. Attorney Scott stated. “These two deaths were the first reported fentanyl overdose deaths in Fresno and Madera Counties. As they demonstrate, fentanyl is extremely dangerous and is a serious public health threat in our area and the nation as a whole. Even trace amounts of this drug can be lethal, and it poses serious risks to those who come into contact with it, including first responders. We will continue to work with our state and federal partners to target those who distribute this poison in our communities.”

“Fentanyl is man-made and potent in the smallest amounts. A few grains of the substance can lead to overdose, and we are increasingly seeing it sold as other illicit drugs. The message has been sent, if you distribute drugs that result in death and serious bodily injury, we will use every tool available to ensure that justice is served,” stated Drug Enforcement Administration Special Agent in Charge Daniel C. Comeaux. “I applaud the collaborative efforts and good old fashioned police work that led to the successful prosecution of this investigation.”

According to court documents, on Jan. 7, 2019, law enforcement officers responded to a call concerning an overdose in Fresno and found three individuals on the ground with faint or no pulse. All three individuals were transported to Community Regional Medical Center for treatment. One of the individuals was pronounced dead on Jan. 10, 2019. A toxicology report determined that the cause of death for the individual was overdose from fentanyl. The other two individuals survived and were later released from the hospital.

On Jan. 24, after a four-day trial, a jury found that the death resulted from the use of the fentanyl distributed by Pearson, and it caused the other two victims to suffer serious bodily injury. Pearson was convicted of a second count of distribution of fentanyl resulting in death of a victim in Madera, and the jury found the death of this victim resulted from the use of the fentanyl distributed by Pearson. On Jan. 7, 2019, the victim, the mother of Pearson’s children, was found motionless on the floor of her bathroom by family members. Officers and paramedics were unable to revive her and she was pronounced dead that evening.

During the sentencing hearing, Judge Drozd found that Pearson had obstructed justice during the investigation by deleting text messages between himself and the Madera victim in an effort to frustrate law enforcement. Additionally, Judge Drozd found that during the trial, Pearson obstructed justice by testifying falsely in an effort to mislead the jury resulting in an increased sentence. Even though Pearson may not have known he was distributing fentanyl and that his actions would cause the deaths of two people and serious bodily injury to two additional people, that was immaterial Judge Drozd said while imposing the sentence for Pearson’s distribution of drugs that had tragic results.

This case was the product of an investigation by the U.S. Drug Enforcement Administration, Homeland Security Investigations, the Fresno Police Department, and the Madera Police Department. Assistant U.S. Attorneys Laurel Montoya and Michael Tierney prosecuted the case.

FRESNO, Calif. — A federal grand jury returned a three-count indictment today against a Fresno resident, charging him with conspiracy, obstruction of correspondence, and possession of stolen mail, U.S. Attorney McGregor W. Scott announced.

According to court documents, Joaquin Velasco, 22, and another individual conspired to steal mail from a mail truck. On Feb. 26, they broke into a mail truck while the mail carrier was using the vehicle to deliver mail on a mail route. They removed multiple bags of mail and a white tray of mail and fled the area with the stolen mail in their vehicle. Velasco took the mail, before it was delivered to the person to whom it was directed, with the intent to obstruct the correspondence.

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

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

SACRAMENTO, Calif. — A Woodland resident has been charged by indictment with distribution of fentanyl resulting in an overdose death and with distributing fentanyl on two separate dates after the overdose death, U.S. Attorney McGregor W. Scott announced.

According to the indictment, Joshua Cabanillas, 20, distributed fentanyl that resulted in the overdose death of a person in Woodland in February 2020. Additionally, Sacramento residents Gregory Tabarez, 22, and Joseph Elijah Cuaron, 20, are charged by complaint with distributing fentanyl alongside Cabanillas.

The complaint alleges that Cabanillas was arrested on May 15, after meeting with Tabarez and Cuaron to distribute an additional 1,000 counterfeit blue “M30” pills containing fentanyl. The counterfeit pills are designed to look like authentic oxycodone hydrochloride 30 mg pills that could be obtained from a pharmacy. Unlike authentic pharmaceuticals, the counterfeit pills are pressed illicitly and actually contain fentanyl.

Today, the United States faces an unprecedented drug epidemic. The Centers for Disease Control estimates that more than 70,000 Americans died of drug overdoses in 2019. Many of these deaths are attributed to the increased abuse of potent and dangerous synthetic opioids like fentanyl. The Drug Enforcement Administration has reported that fentanyl-containing counterfeit pills continue to be associated with overdose deaths across the country.

This case is the product of an investigation by the Federal Bureau of Investigation; the Woodland Police Department; the Sacramento County Probation Department; the Sacramento County Sheriff's Department; the Sacramento Police Department; the Yolo County Sheriff’s Office, Coroner Section; the Yolo County District Attorney’s Office; the Yolo County Probation Department; Placer County Sheriff’s Office; the California Highway Patrol; the California Department of Corrections and Rehabilitation, Special Service Unit; and the California Department of Corrections and Rehabilitation, Division of Adult Parole Operations. Assistant U.S. Attorney Vincenza Rabenn is prosecuting the case.

Cabanillas, Tabarez and Cuaron are currently in custody. If convicted of the distribution of fentanyl resulting in death, Cabanillas faces a maximum statutory penalty mandatory minimum of 20 years in prison and a maximum of life in prison. If convicted of the conspiracy or distribution charges, Cabanillas, Tabarez and Cuaron face a maximum statutory penalty of 20 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. — Samuel Delacruz, 38, of Fresno, was sentenced today to eight years in prison for being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.

According to court documents, in 2017, Delacruz was serving the remainder of his federal sentence for a 2013 conviction at Turning Point Fresno Residential Reentry Center. On Oct. 15, 2017, he failed to return to the center as required following a day pass. A U.S. Marshals Service warrant was issued, but his whereabouts remained unknown for over five months. On March 22, 2018, when a sheriff’s deputy attempted to pull Delacruz over for a traffic violation, Delacruz attempted to flee in the car and then on foot. While he ran, he tossed a firearm into an area where children were playing. That firearm was loaded with 18 live rounds of ammunition. Fortunately, the gun was located and turned over to law enforcement.

Delacruz, an active Fresno Bulldog street gang member, has a previous felony conviction for being a felon in possession of a firearm and is prohibited from possessing a firearm or ammunition. On Dec. 2, 2019, Delacruz pleaded guilty to the offense.

This case was the product of an investigation by the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno County Sheriff’s Office. Assistant U.S. Attorneys Jessica A. Massey and Kimberly A. 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.

FRESNO, Calif. — Jerome Roberson, 33, of Bakersfield, pleaded guilty today to destroying evidence in a federal investigation, U.S. Attorney McGregor W. Scott announced.

According to court documents, on Dec. 2, 2019, Roberson was facilitating prostitution in the Bakersfield area using his cellphone and by other means. At the time, federal agents were investigating Roberson due to his involvement in the Country Boy Crip gang in Bakersfield. Roberson smashed his cellphone in an effort to conceal evidence when he was confronted by federal agents. On Dec. 17, 2019, Roberson was charged with using a cellular device to facilitate interstate prostitution and obstruction of justice.

This case is the product of an investigation by the Federal Bureau of Investigation and the Bakersfield Police Department. Assistant U.S. Attorney Thomas Newman is prosecuting the case.

Roberson is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Oct. 16. Roberson faces a maximum statutory penalty of 20 years in prison 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.

SACRAMENTO, Calif. — Catherine Stuckey, 27, of Woodland Hills, pleaded guilty Tuesday to conspiracy to distribute controlled substances, U.S. Attorney McGregor W. Scott announced.

According to court documents, from June 2018 through May 2019, Stuckey conspired with others to operate several darknet vendor accounts, including “RaiseAppeals” on Dream Marketplace, “Diablow” on Silk Road 3.0, and “RaisedByDiablow” on Nightmare Marketplace. Through these accounts, Stuckey and her co-conspirators sold large quantities of heroin, cocaine, and methamphetamine to customers throughout the United States. Law enforcement searched the residences of Stuckey and her co-conspirators on May 16, 2019. Stuckey possessed more than 23 kilograms of methamphetamine, 1.9 kilograms of heroin, and 2.7 kilograms of cocaine.

This case is the product of an investigation by the Northern California Illicit Digital Economy Task Force (NCIDE), composed of agents from Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Drug Enforcement Administration, and IRS Criminal Investigation. The NCIDE Task Force is a federal task force focused on targeting all forms of darknet and cryptocurrency activity in the Eastern District of California. Assistant U.S. Attorneys Grant B. Rabenn and Paul Hemesath are prosecuting the case.

Stuckey is scheduled to be sentenced by U.S. District Judge John A. Mendez on Oct. 20. Stuckey faces a maximum statutory penalty of life in prison, a 10-year mandatory minimum, and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — A Porterville man was arrested today after a federal grand jury returned a five‑count indictment on July 9, charging him with mail fraud and introducing a misbranded drug into interstate commerce with the intent to defraud, U.S. Attorney McGregor W. Scott announced.

According to the indictment, Huu Tieu, 58, is the president and chief executive officer of Golden Sunrise Pharmaceutical Inc. and Golden Sunrise Nutraceutical Inc., both headquartered in Porterville. From at least April 25 to July 9, through his companies, Tieu marketed and sold a package of herbal mixtures dubbed the “Emergency D-Virus Plan of Care,” which he claimed treated COVID-19. In materials posted on the companies’ websites and Facebook pages and in emails to the media, Tieu made a series of false statements about the Emergency D-Virus Plan of Care, including:

• That one of the mixtures in the product, called “ImunStem,” was the first dietary supplement in the United States to be FDA approved as a prescription medicine to treat serious or life-threatening conditions and had specifically been approved to treat COVID‑19. In reality, the FDA has never approved any Golden Sunrise product for any intended use and, on at least two occasions, has told Tieu in writing that ImunStem is not FDA approved; and
• That ImunStem was designated as a Regenerative Medicine Advanced Therapy (RMAT) under the 21st Century Cures Act. In reality, the FDA never granted an RMAT designation to any Golden Sunrise product, denied Tieu’s request for an RMAT designation for ImunStem in 2017, and reiterated that denial to Tieu in writing in 2019.

According to the indictment, Tieu made these misrepresentations for the purpose of soliciting customers, both patients and health care professionals, to acquire Golden Sunrise products so that he could submit reimbursement claims to the patients’ insurers, including Medicare and Medi-Cal. Tieu dispensed his products to customers in the Porterville area and also shipped the products to other parts of California and the United States.

On May 8, an undercover investigator with the Tulare County District Attorney’s Office met with Tieu in person, telling him her mother was 68 and very sick with COVID-19. The investigator asked Tieu if she should take her mother to the hospital. Tieu responded, “No. You cannot go in there,” and instead, encouraged her to use Golden Sunrise products.

“The FDA is actively monitoring the marketplace for fraudulent products claiming to treat COVID-19. Americans expect and deserve treatments that are safe, effective and meet appropriate standards, and the agency will continue to bring to justice those who place profits above the public health during this pandemic,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office. “We commend the efforts of our law enforcement partners in this investigation and today’s announcement should serve as a reminder that we will take appropriate action against those who jeopardize the health of Americans while taking advantage of a crisis.”

This case is the product of an investigation by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General, the U.S. Food and Drug Administration, the U.S. Postal Inspection Service, and the California Department of Health Care Services with assistance from the Tulare County District Attorney’s Office and the California Bureau of Medi-Cal Fraud and Elder Abuse. Assistant U.S. Attorneys Vincente Tennerelli and Alexandre Dempsey are prosecuting the case.

If convicted, Tieu faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on the mail fraud counts and three years in prison and a $10,000 fine on the misbranding counts. 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. — The Internal Revenue Service Criminal Investigation division and the U.S. Attorney’s Office for the Eastern District of California reminded taxpayers of the July 15 filing and payment deadline and warned against an increase in tax and COVID-19 scams.

Due to COVID-19, the original filing deadline and tax payment due date for 2019 was postponed from April 15 to July 15. Taxpayers filing Form 1040 series returns must file Form 4868 by July 15 to obtain the automatic extension to Oct. 15.

“Although the extension provides additional time to file the tax return – it is not an extension to pay any taxes due,” said Kareem Carter, Special Agent in Charge of the IRS Criminal Investigation division in California. “For people facing hardships who cannot pay in full, including those affected by COVID-19, the IRS has several options available to help. The IRS encourages taxpayers to visit IRS.gov as soon as possible to explore these options and avoid accruing interest and penalties after the July 15 deadline.”

As the filing deadline approaches, taxpayers should beware of tax and COVID-19 related scams. “Criminals use the tax filing deadline as an opportunity to steal personal and financial information,” said U.S. Attorney McGregor W. Scott for the Eastern District of California. “Taxpayers should remain vigilant and know that the IRS will not initiate contact with them via phone, email or social media to request personal or financial information.”

In the last few months, the IRS Criminal Investigation division (CI) has continued to see a tremendous increase in a variety of Economic Impact Payment scams and other financial schemes. CI continues to work with its law enforcement partners to put a stop to these schemes and bring criminals to justice.

Taxpayers can report COVID-19 scams to the National Center for Disaster Fraud. Taxpayers can also report fraud or theft of their Economic Impact Payments to the Treasury Inspector General for Tax Administration (TIGTA). Unsolicited (phishing) emails that appear to be from the IRS should be forwarded to phishing@irs.gov.

For the most up-to-date information about the tax filing deadline and IRS impersonation scams, taxpayers can visit IRS.gov. To verify the identity of an IRS Special Agent please contact OaklandFieldOffice@ci.irs.gov.

SACRAMENTO, Calif. — The District Attorneys of Alameda, Sacramento, and San Diego counties together with the U.S. Attorney’s Office for the Eastern District of California launched an online outreach campaign to help victims of domestic violence and child exploitation and abuse during the COVID-19 pandemic.

The outreach campaign was created to combat unintended consequence of COVID-19 public health measures — an alarming rise in domestic violence with victims trapped at home with their abusers, and in child exploitation as more children are pushed online for longer periods of time with school and summer camp closures. The National Center of Missing and Exploited Children (NCMEC) runs the CyberTipline, a centralized, national reporting system for the online exploitation of children. In March 2019, NCMEC received 983,734 reports and in April 2019, NCMEC received approximately 1 million reports through its CyberTipline. In March 2020, NCMEC received over 2 million reports, 4.2 million reports in April 2020.

“Our shared goal in this campaign is to help children who are being exploited by online predators, and other child abuse and domestic violence victims who are isolated and at risk during this pandemic by using one of the only available means to reach them — technology,” said U.S. Attorney Scott. “Every time one of our posts is seen or shared, it’s a chance to save a life.”

The public awareness messages are visible on Facebook and other social media platforms with a new post made each day for two weeks, with the ad campaign continuing to run through July. The posts provide information for victims with resources, such as 24-hour hotlines and other services vital to reporting abuse. The posts also provide tips for concerned friends, relatives, and educators on how they can help victims of abuse. This outreach campaign has reached more than 142,000 people, and will continue to reach more people throughout July.

A Facebook Live panel on July 10 featuring U.S. Attorney Scott and the District Attorneys of Alameda, Sacramento, and San Diego counties will discuss the current challenges facing victims and survivors of domestic violence and child abuse, and will be moderated by Childhelp, a nonprofit organization aiding victims of child abuse.

FRESNO, Calif. — Francisco Alcantar-Miranda, aka Paquin, 31, of Mexico, was sentenced today to 10 years in prison for conspiring to manufacture, to distribute and to possess with intent to distribute methamphetamine, cocaine, heroin, and marijuana, U.S. Attorney McGregor W. Scott announced. U.S. District Judge Dale A. Drozd, who sentenced Alcantar, also ordered the forfeiture of a handgun and approximately $18,000 in cash.

On Feb. 2, Alcantar pleaded guilty and acknowledged that he assisted in manufacturing methamphetamine and storing large quantities of other drugs at an unoccupied residence in Madera. At the end of January 2019, detectives of the Madera County Sheriff’s Office Narcotic Enforcement Team (MADNET) executed a search warrant at the residence and found Alcantar, along with two other men, Oscar Rene Marrot-Garcia, 27, of Chowchilla, and Jose Monge-Ponce, 31, of Mexico. The detectives also found over 10 pounds of methamphetamine, 1 pound of heroin, 1 pound of cocaine, and 25 pounds of marijuana.

Marrot-Garcia pleaded guilty on June 12, and is scheduled for sentencing on Sept. 4. He faces a mandatory minimum statutory penalty of 10 years in prison and a maximum statutory penalty of life in prison, along with a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Charges are pending against Monge-Ponce, and he is scheduled for a jury trial on Oct. 26. The charges are only allegations; Monge-Ponce is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by MADNET detectives and agents of the High Intensity Drug Trafficking Area (HIDTA) High Impact Investigation Team (HIIT), consisting of agents of Homeland Security Investigations; California Department of Justice; California Highway Patrol; Fresno, Tulare, and King Counties Sheriffs’ Offices; and Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced a Turlock man today to two years and three months in prison to be followed by three years of supervised release for purposefully striking a Stanislaus County Sheriff’s helicopter with the beam of a powerful laser, U.S. Attorney McGregor W. Scott announced.

In March 2018, Roger Shane John, 34, pleaded guilty. According to court documents, on the evening of Oct. 22, 2017, John struck a Stanislaus County Sheriff’s helicopter, Air 101, five to six times with a powerful green laser, causing visual interference of both the pilot and tactical flight officer and disrupting an air support response to a domestic violence call. The laser strikes occurred within the Federal Aviation Administration‑designated laser-free zone of the Modesto Airport.

According to the guilty plea, John knew that shining a laser at an aircraft is illegal. An examination of John’s laser revealed that it emitted 85 milliwatts (mW) of power and is 17 times more powerful than what is legally permissible for handheld laser devices. The Food and Drug Administration, which regulates handheld laser devices, has found that such power emission is dangerous and can cause either temporary visual effects or an eye injury.

This case was the product of an investigation by the Federal Bureau of Investigation, Stanislaus County Sheriff’s Department, and Modesto Police Department. Assistant U.S. Attorney Karen Escobar prosecuted the case.

SACRAMENTO, Calif. — Christopher Ramonaguilar Lawrence, 25, of Chico, was sentenced today to 14 years in prison for sex trafficking of a minor and distribution of methamphetamine to a person under 21, U.S. Attorney McGregor W. Scott announced.

According to court documents and evidence presented at trial, in July and August 2017, Lawrence recruited a then 17-year-old girl to engage in prostitution for his financial benefit. Lawrence used social media to communicate with the victim, and on two occasions, he lured the victim to Chico motel rooms where he gave the victim methamphetamine, explained the methods of his prostitution business, including how to detect and evade law enforcement, and continued to recruit the victim to work for him as a prostitute. After a seven-day trial, a federal jury found Lawrence guilty on Aug. 29, 2019.

“Sex trafficking can occur in any community, and it is an exploitive, abusive crime that treats human beings as mere commodities to be bought and sold,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Our agents work closely with our local, state, and federal partners to identify individuals who are trafficking minors and adults for financial gain to disrupt this activity in the communities we serve. Today, as a result of our partnership with the Chico Police Department and Butte County Sheriff’s Office, an exploiter who entrapped his victim in a cycle of abuse and addiction will pay the penalty for his crimes, and those he exploited can take another step towards healing.”

This case was the product of an investigation by the Federal Bureau of Investigation, the Chico Police Department, and the Butte County Sheriff’s Office. Assistant U.S. Attorneys Brian A. Fogerty and Quinn Hochhalter prosecuted the case.

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

FRESNO, Calif. — A federal grand jury returned an indictment today against a Madera County man for a marijuana cultivation operation that consisted of over 1,000 marijuana plants grown in the Carter Creek watershed drainage network in the Sierra National Forest in Madera County, U.S. Attorney McGregor W. Scott announced.

The five-count indictment charged Carson Shane Wilhite, 41, of Ahwahnee, with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, damaging public lands and natural resources, possessing firearms in furtherance of drug trafficking, and being a methamphetamine user in possession of firearms. According to the indictment, Wilhite was involved in the marijuana cultivation operation and, in furtherance of his drug trafficking activities, he possessed 12 firearms while using methamphetamine. The cultivation operation is alleged to have caused significant damage to the environment.

This case is the product of an investigation by the U.S. Forest Service, California Department of Fish and Wildlife, and the Madera County Sheriff’s Office. Integral Ecology Research Center, a nonprofit organization dedicated to the research and conservation of wildlife and their ecosystems, analyzed and documented the environmental damage. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

If convicted of the drug conspiracy and manufacturing offense, Wilhite faces a mandatory minimum statutory penalty of 10 years and a maximum penalty of life in prison, as well as a $10 million fine. The environmental charge and the charge of being a drug user in possession of firearms carry a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. The charge of possessing a firearm in connection with drug trafficking carries a mandatory minimum prison term of five years and a maximum term of life in prison and a $250,000 fine. The defendant faces a mandatory consecutive prison term of five years. In addition, he may be liable for restitution to the U.S. Forest Service for damage sustained to the land and natural resources as a result of the cultivation activities. 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. — Two Soledad men were sentenced this week for conspiracy to rob the Chase Bank in Modesto, U.S. Attorney McGregor W. Scott announced. Robert Zavala, 24, was sentenced today to five years in prison, and Moises Misael Garcia DeLeon, 27, was sentenced to on Monday to four years and nine months in prison.

According to court documents, on Nov. 16, 2018, a deputy sheriff noticed a Nissan Altima that had been reported stolen from Salinas parked in a parking lot at an apartment complex in Modesto. Officers set up surveillance on the stolen Nissan and watched four cars carrying the five co-conspirators leave the apartment complex.

The cars traveled close to each other to a shopping area in Modesto that contained a Chase Bank. Zavala, who drove one of the cars, drove back and forth near the Chase Bank on surveillance.

The stolen Nissan, driven by co-defendant Victor Bravo, parked in a loading area behind the shopping center next to a car driven by Enrique Lopez. Lopez got out of his car and started loading items into the stolen Nissan. The stolen Nissan then left the loading area, drove through an alley, and parked in a parking lot near Chase Bank. Officers stopped the car and detained all four occupants. Inside the stolen Nissan, officers found two assault rifle-style firearms, a handgun, a revolver, masks, gloves, and a large duffel bag. DeLeon was sitting in the front passenger seat with an assault rifle next to him.

Three co-defendants have been sentenced. On June 2, Bravo and Lopez were each sentenced to five years in prison, and on June 15, Cesar Lemus was sentenced to four years and seven months in prison.

This case is the product of an investigation by the Federal Bureau of Investigation, the Stanislaus County Sheriff’s Department, the Modesto Police Department, the Monterey County Sheriff’s Department, San Mateo County Sheriff’s Department, Tulare County Sheriff’s Department, and Fresno County Sheriff’s Department. Assistant U.S. Attorney Ross Pearson 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.

SACRAMENTO, Calif. — Five individuals were indicted Thursday for the burglary of a Vacaville gun shop, U.S. Attorney McGregor W. Scott announced.

According to court documents, on June 1, police responded to reports of suspicious activity at Guns, Fishing and Other Stuff, a two-story gun and outdoor recreation store in Vacaville. Guns, Fishing and Other Stuff is a federally licensed firearms dealer. When officers responded, four vehicles fled the scene. After a high-speed chase on Interstate 80 during which vehicles reached over 100 miles per hour, one vehicle, a rented minivan, was stopped, and its five passengers were arrested after a foot pursuit. In total, the gun store reported that over 70 firearms had been stolen.

According to the criminal complaint, inside the minivan were bolt cutters, a power saw, and 13 handguns with price tags from Guns, Fishing and Other Stuff still attached. Donte Marcel Anderson, 31, of Antioch; Desteny Estrella Leilani Salazar, 22, of San Francisco; Donley Thompson, 27, of Pinole; Tracy Whitfield, 31, of Pittsburg; and Adrian Oscar Duran, 23, of San Francisco, were arrested. They are charged with possession of a stolen firearm and burglary of a federally licensed firearms dealer.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, Vacaville Police Department, Fairfield Police Department, Antioch Police Department, Vallejo Police Department, and California Department of Justice – Bureau of Firearms. Assistant U.S. Attorneys Justin L. Lee and Brian A. Fogerty are prosecuting the case.

If convicted, the defendants face a maximum statutory penalty of 10 years in prison and a fine of up to $250,000 for both counts. 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. — A federal grand jury returned a three-count indictment today against a Honolulu woman, charging her with conspiracy to distribute heroin, and two counts of possessing heroin with intent to distribute heroin, U.S. Attorney McGregor W. Scott announced.

According to court documents, between Oct. 24, 2019, and Nov. 16, 2019, Arlene‑Alena Keko Olani, 29, conspired with an inmate at High Desert State Prison to fly from Honolulu to Sacramento, rent a car, obtain heroin, and then try to surreptitiously pass the drugs to the inmate during a contact visit at the prison.

Investigators learned of the plot by listening to recorded prison calls and decoding the calls between Keko Olani and the inmate. When Keko Olani flew from Honolulu and landed in Sacramento on Nov. 15, investigators spotted her in the airport and identified the silver Toyota Camry she rented to carry out the smuggling operation. On Nov. 16, 2019, Keko Olani arrived at High Desert State Prison in Susanville. Investigators seized heroin she had hidden on her person. They also discovered additional heroin in her rental car parked in the prison parking lot.  

This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation (CDCR), Lassen County Sheriff’s Office, Susanville Police Department, Lassen County District Attorney’s Office, and Sacramento County Sheriff’s Office. Assistant U.S. Attorney Jason Hitt is prosecuting the case.

Keko Olani made her initial appearance on March 11, and was ordered released on bond.

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

This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

SACRAMENTO, Calif. — A Salt Lake City man pleaded guilty Thursday to a conspiracy to commit bank fraud that attempted to defraud financial institutions of more than $1.5 million, U.S. Attorney McGregor W. Scott announced.

According to court documents, between June 2018 and February 2019, Talalima Toilolo, 44, conspired with Johnathon Ward and Monica Nunes, to defraud financial institutions using a scheme that exploited the merchant refund process used by businesses and retail establishments to pay back customers for returns, reimbursements, and erroneous charges.

The defendants committed this scheme by stealing or purchasing point-of-sale (POS) terminals used by businesses to process bankcard transactions. The defendants programmed each terminal to make it appear as if it was authorized by a particular merchant, connected the terminals to payment processing intermediaries, and executed refund transactions even though no purchases had been made. The payment processors, falsely believing the terminals were authorized, approved the refunds and caused the merchants’ banks to transfer funds to the defendants’ accounts. The defendants then drained the stolen funds from the accounts. The indictment alleges that this scheme caused at least $3.5 million in intended victim losses.

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

Nunes has pleaded guilty and is scheduled to be sentenced on Aug. 6. Charges are pending against Ward. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced a Fresno man today to one year and one day in prison for credit card fraud and possession of stolen mail, U.S. Attorney McGregor W. Scott announced.

According to court records, from Dec. 5, 2018, through March 28, 2019, Justin Deger, 28, broke into mail boxes at various Fresno area residences and stole over 2,000 pieces of mail, including checks and 26 credit cards. He subsequently activated some of those credit cards and made unauthorized purchases and cash withdrawals at retailers and casinos totaling thousands of dollars. Deger was also ordered to pay full restitution to the victims and forfeit the proceeds of his crimes.

This case was the product of an investigation by the U.S. Postal Inspection Service and the Fresno Police Department. Assistant U.S. Attorneys Vincente Tennerelli and Joseph Barton prosecuted the case.