Eastern District of California

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment Thursday against Ivan Lopez, 34, of Mexico, and Erick Olivas Lopez, 39, of Mexico, charging them with conspiracy and possession with intent to distribute at least 400 grams of a substance containing fentanyl, U.S. Attorney McGregor W. Scott announced.

According to court documents, on April 25, 2019, the defendants were found in possession of approximately 14,799 fentanyl-laced counterfeit oxycodone pills, weighing approximately 1.6 kilograms, during a traffic stop in Sacramento.

This case is the product of an investigation by the Tri-County Drug Enforcement Team (TRIDENT), the U.S. Drug Enforcement Administration, and the California Highway Patrol. Assistant United States Attorney David W. Spencer is prosecuting the case.

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

FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Alejandro Cabrera-Gallegos, 37, of Porterville, charging him with distribution of methamphetamine and possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.

According to court documents, on May 2, 2019, Cabrera distributed one pound of methamphetamine to an individual in Tulare County. On May 14, 2019, Cabrera was arrested in Tulare County attempting to distribute five pounds of methamphetamine. An additional one pound of methamphetamine was seized during a search warrant executed at Cabrera’s residence in Porterville on May 14, 2019.

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

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

SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Scott Norris Johnson, 57, of Carmichael, charging him with three counts of making and subscribing a false tax return, U.S. Attorney McGregor W. Scott and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division announced.

According to the indictment, Johnson owned and operated Disabled Access Prevents Injury Inc. (DAPI), a legal services corporation. First using DAPI, and later using a law firm, Johnson filed thousands of lawsuits in the Eastern District of California and elsewhere. Johnson named himself as the plaintiff in the lawsuits and made claims under the Americans with Disabilities Act of 1990, the California Disabled Persons Act, and the California Unruh Civil Rights Act.

Under the Small Business Job Protection Act of 1996, payments related to lawsuit settlements or awards are taxable unless they were paid on account of personal physical injury or physical sickness. Johnson, however, allegedly materially underreported the taxable income he received from lawsuit settlements and awards on his income tax returns for tax years 2012, 2013, and 2014. By understating his income on his tax returns, Johnson and DAPI paid little to no income tax for tax years 2012, 2013 and 2014.

This case is the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Katherine T. Lydon and Trial Attorney Tim Russo of the Tax Division are prosecuting the case.

If convicted, Johnson faces a maximum statutory penalty of three 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.

FRESNO, Calif. — Cyrus Dennis Braswell, 57, was sentenced Monday by U.S. District Judge Dale A. Drozd to eight years and one month in prison for three counts of mailing threatening communications, U.S. Attorney McGregor W. Scott announced.

On February 13, a federal jury found Braswell guilty of mailing threats against a federal judge in the District of Alaska who had sentenced Braswell in 1998. According to court documents and evidence presented at trial, while an inmate at Mendota Federal Correctional Institute in Fresno County, Braswell mailed communications to Alaska in which he threatened to murder the judge after he got out of prison.

This case was the product of an investigation by the Federal Bureau of Investigation, the U.S. Marshals Service, and the Bureau of Prisons. Assistant U.S. Attorneys Laura D. Withers and Kirk E. Sheriff prosecuted the case.

Braswell currently remains in the custody of the Bureau of Prisons, and he will serve the new sentence after he completes his original 1998 sentence.

FRESNO, Calif. — Ara Dolarian, 58, was arrested on Wednesday, May 15, in Fresno on a criminal complaint charging him with illegally brokering the sale of military-grade arms and munitions, money laundering, and conspiracy, U.S. Attorney McGregor W. Scott announced.

According to court documents, Dolarian was the owner and president of Dolarian Capital Inc. (DCI), an arms brokering company operating in Fresno; Washington, DC; and Sophia, Bulgaria. Dolarian is a United States citizen residing in Sophia, Bulgaria. Beginning in 2013 and continuing through 2014, the U.S. Department of State denied DCI licenses to broker international arms deals. During this time period, in which DCI was not authorized to broker international arms deals, Dolarian allegedly attempted to broker a multi-million dollar transfer of high‑explosive bombs, rockets, military-grade firearms, and aircraft-mounted cannons from Eastern Europe and South Africa to the government of Nigeria.

In furtherance of this arms deal, it is alleged that in June 2014, Dolarian executed sales contracts with Societe D’Equipments Internationaux (SEI), a French arms brokering company acting on behalf of Nigeria, for the purchase and transfer of high‑explosive bombs, rockets, military-grade firearms, and aircraft-mounted cannons worth more than $8.5 million. Dolarian submitted a brokering application with the U.S. State Department in June 2014 for the proposed deal with Nigeria. This brokering application, along with a later one, was never approved by the State Department.

Without approval from the State Department, Dolarian allegedly accepted approximately $8.3 million from Nigeria and its broker, SEI. These funds were, in part, funneled by Nigeria through a purported furniture company in Hong Kong. Then they were routed through numerous shell accounts held by Dolarian, and others. Soon after obtaining the funds, Dolarian used them to pay off personal expenses, such as federal and state tax debts, and to buy a BMW SUV. In February 2015, the federal government seized over $6 million that remained in Dolarian’s accounts. Civil forfeiture proceedings related to that seizure are currently pending (Case No. 1:15-cv-954-DAD).

“Homeland Security Investigations’ (HSI) national security priorities include the investigation of violations of the arms export and money laundering control laws of the United States,” said Ryan L. Spradlin, HSI Special Agent in Charge. “Illegal arms brokering represents a threat, not only to U.S. national security, but to the security of the international community.”

This case is the product of an investigation by Homeland Security Investigations. This matter is being prosecuted by Assistant U.S. Attorneys Grant B. Rabenn and Jeffrey Spivak, and Department of Justice Trial Attorney Christian Ford of the National Security Division’s Counterintelligence and Expert Control Section.

Dolarian made his initial appearance on the charges on Thursday and is scheduled for a detention hearing on May 20.

If convicted of unlicensed arms brokering, Dolarian faces a maximum statutory penalty of 20 years in prison and a $1 million fine; a maximum statutory penalty of five years in prison and a $250,000 fine for conspiracy, and a maximum statutory penalty of 20 years in prison and a fine of up to $500,000 or up to twice the value of the property involved in the transactions, whichever is greater for money laundering. 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. — Johnny Kajitani Jr., 47, of Clovis, was sentenced Monday to two years and 10 months in prison for bank fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced. In addition, U.S. District Judge Dale A. Drozd ordered Kajitani to pay almost $44,000 in restitution to his various victims.

According to court documents, Kajitani obtained the social security number of an individual without her knowledge. In October 2012, he used that social security number to apply for membership with a local credit union. Kajitani then used that social security number to apply for and obtain from the credit union a $30,000 vehicle loan and a Platinum Visa credit card with a $7,500 limit. The credit union ultimately suffered a loss of over $30,000.

Furthermore, in 2014, Kajitani obtained the personally identifiable information and social security number of another individual. In September 2014, Kajitani opened four credit cards using that social security number without the consent of the victim. After Kajitani defaulted on these credit cards, four different banks suffered a combined loss of almost $30,000.

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

FRESNO, Calif. — Jose Manuel Sotelo-Mendoza (Sotelo), 27, of Ceres, was sentenced today to eight years and four months in prison for conspiring to distribute and possess with intent to distribute 15 pounds of crystal methamphetamine, U.S. Attorney McGregor W. Scott announced.

Sotelo’s sentence follows his guilty plea earlier this year. According to court documents, Sotelo and his co-defendant Oscar Ivan Salazar-Avalos (Salazar), 29, of Mexico, delivered 15 pounds of crystal methamphetamine to an undercover officer in Delano after Salazar negotiated with the officer for the delivery of the drug for $3,400 per pound for a total of $51,000. Salazar and Sotelo met the source of supply in Castaic in the northern part of Los Angeles County to obtain the methamphetamine. Salazar was recently sentenced to 6 years and 9 months in prison for the drug conspiracy.

This case was the product of an investigation by the Central Valley High Intensity Drug Trafficking Area Task Force, consisting of law enforcement officers of Homeland Security Investigations, the California Highway Patrol, the Bureau of Investigation of the California Department of Justice, the Fresno Police Department, and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.

SACRAMENTO, Calif. — Samuel C. Thompson, 34, of Grass Valley, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 10 years and four months in prison for receipt of child pornography and attempting to use the internet to entice a child to engage in sexual activity, U.S. Attorney McGregor W. Scott announced.

“Homeland Security Investigations (HSI) (San Francisco and Northern California) is committed to public safety, which includes protecting the children and youth of our communities who are most vulnerable to online predators,” said Ryan L. Spradlin, Special Agent in Charge, Homeland Security Investigations. “We can’t arrest our way out of this problem – the real key to combatting online sexual predators is teaching parents and their children about the dangers of online predators and where to go for help. HSI will continuing working with its federal, state, and local law enforcement partners throughout the Bay Area and Northern California in this crucial endeavor.”

According to court documents, between August 2012 and March 2013, Thompson used a peer-to-peer file sharing software program to download child pornography files from the internet. He was charged in case 2:13-cr-273-GEB with receipt of child pornography and pleaded guilty in May 2016. That case was the product of an investigation by Homeland Security Investigations.

According to court documents, in 2016, while Thompson was on supervised pretrial release in the 2013 case, he posted an online advertisement seeking to meet and teach a “younger lover.” After an undercover Placer County Sheriff’s detective replied to the advertisement, Thompson arranged to meet what he believed would be a 13-year-old girl for a sexual encounter. He was arrested when he arrived at a park in Auburn, where he planned to carry out that sexual encounter. He was charged in case 2:16-cr-232-GEB with attempted online enticement of a minor. That case was the product of an investigation by the Placer County Sheriff’s Office and the Federal Bureau of Investigation.

“The FBI will always work with its law enforcement partners to protect the innocence of the children in the communities we serve,” said Assistant Special Agent in Charge, Tom Osborne. “Thompson continued to pose as a threat to minors by attempting to contact a teen for sex while awaiting sentencing for child pornography charges.”

Assistant U.S. Attorney Matthew G. Morris prosecuted both cases.

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

SACRAMENTO, Calif. — A federal jury found Anthony Lazzarino, 68, former Chief of Podiatry for the Veterans Affairs’ (VA) Northern California Health Care System, and Peter Wong, 61, founder and CEO of Sunrise Shoes and Pedorthic Service Corporation, guilty of health care fraud and conspiracy to commit wire fraud, U.S. Attorney McGregor W. Scott announced.

According to evidence presented at trial, between March 2008 and February 2015, Lazzarino and Wong engaged in a scheme to defraud the VA by billing for custom work and services that were prescribed but not supplied in shoes delivered to veterans. In addition, Lazzarino, Wong, and Jai Aing Chen, who separately pleaded guilty on December 6, 2016, agreed to make materially false statements to the VA regarding where the shoes were manufactured, in the course of applying for a national contract worth over $11 million per year.

This case is the product of an investigation by the Department of Veterans Affairs Office of Inspector General, Department of Veterans Affairs Police Service, Homeland Security Investigations, and Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew M. Yelovich and Lee S. Bickley are prosecuting the case.

Lazzarino and Wong are scheduled to be sentenced by U.S. District Judge John A. Mendez on August 27. They face a maximum statutory penalty of 10 years in prison and a $250,000 fine for each health care fraud count, and five years in prison and a $250,000 fine for the wire fraud conspiracy count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Sequoiya D. Harris, 35, former resident of Sacramento and Stockton; John A. Owens Jr., 32, of Sacramento; and Dionne Thomas, 53, of Galt, pleaded guilty today to participating in a federal tax refund fraud conspiracy, U.S. Attorney McGregor W. Scott announced.

According to court documents, from at least February 2009 through April 2013, Harris, Owens, Thomas, and co-defendant Joe E. Rodriguez Jr. conspired to submit false tax returns in the names of themselves and others to obtain tax refunds from the Internal Revenue Service based on false documents and information. The defendants used hundreds of fraudulent W-2 forms from multiple purported employers to make it appear as if the people listed on the returns worked at those companies and had portions of their wages withheld by the employers for federal tax purposes, but the W-2s, wages, and withholdings were false. The W-2s were used to seek tax refunds of the supposedly withheld wages, and as a basis to seek further tax credits.  Defendants often directed the tax refunds into a variety of bank accounts controlled by Thomas, Owens, and Rodriguez, after which those defendants would often share a substantial portion of the proceeds with Harris. Harris, Owens, and Thomas also had fraudulent tax returns in their own names filed in connection with the conspiracy. In total, the fraudulent tax returns connected to the conspiracy sought approximately $997,804 in tax refunds, of which over $570,000 was paid out by the IRS.

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

Rodriguez, the fourth defendant, is scheduled for trial on June 24, 2019 in front of U.S. District Judge John A. Mendez. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Harris, Owens, and Thomas are scheduled to be sentenced by U.S. District Judge John A. Mendez on September 24, 2019. Each defendant 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.

SACRAMENTO, Calif. — Samuel Thomas Lanier, 40, of Dunsmuir, was charged today with seven counts of major fraud against the United States, U.S. Attorney McGregor W. Scott announced.

According to court documents, from approximately June 2013 to March 2018, Lanier engaged in a scheme to defraud the United States by submitting, or causing to be submitted, false reimbursement requests to the Federal Emergency Management Agency (FEMA) in connection with federal grants awarded to Siskiyou and Shasta County Fire Chiefs Associations to assist them in recruiting and training new firefighters.

In June 2013 and June 2014, respectively, the Siskiyou and Shasta County Fire Chiefs Associations were awarded grants as part of the Staffing for Adequate Fire and Emergency Response (SAFER) program. Each grant was over $1 million. The purpose of these grants was to assure that communities have adequate protection from fire-related hazards, and to help the recipients attain and maintain 24-hour staffing.

Lanier, as an owner or executive of two companies located in Dunsmuir, was hired by the Fire Chiefs Associations to administer these grants. In this capacity, Lanier knowingly submitted to FEMA false and fraudulent reimbursement requests, seeking and obtaining reimbursement for goods and services that were not, in fact, actually obtained on behalf of the fire associations. In so doing, Lanier caused a gross loss to the United States of over $500,000.

This case is the product of an investigation by the Major Frauds & Corruption Unit of the Department of Homeland Security, Office of Inspector General. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.

“The Department of Homeland Security (DHS), Office of Inspector General (OIG) in partnership with the Department of Justice is committed to identifying and investigating fraud schemes and corrupt activities that pose significant risk and major financial impact to DHS and its components, including FEMA. This fraud scheme siphoned vital funds from a federal program that supports local fire departments to serve their communities,” said James E. Long, Special Agent in Charge, Major Frauds and Corruption Unit, DHS OIG. “Fraud perpetrated against FEMA is detrimental to our nation’s infrastructure and safety, especially from programs that support front line firefighters and first responders.”

Lanier has agreed to plead guilty to the charges. He faces a maximum statutory penalty of 10 years in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Rodolfo Torres-Galvan, 30, (Torres), of Michoacán, Mexico, was sentenced today to three years and 10 months in prison for conspiring to manufacture, distribute, and possess with intent to distribute marijuana, U.S. Attorney McGregor W. Scott announced.

Torres’ sentencing follows his guilty plea entered earlier this year. According to court documents, Torres and his co-defendants, Mauricio Vaca-Bucio (Vaca), 31, and Felipe Angeles Valdez-Colima (Valdez), 35, both Mexican nationals, were apprehended after a two-month investigation in the Kiavah Wilderness, a federally designated wilderness area in the Sequoia National Forest. Law enforcement officers saw Torres and Valdez emerge from the forest and enter a Camaro driven by Vaca. They were subsequently stopped in Weldon. Officers found freshly harvested marijuana in the Camaro and located over 1,800 marijuana plants at the grow site on the trail that led to the drop point. The officers also found deadly illegal pesticides, including carbofuran and zinc phosphide, in both the vehicle and at the grow site. In sentencing Torres, U.S. District Judge Dale A. Drozd also ordered Torres to pay $7,620 in restitution to the U.S. Forest Service for the environmental damage caused by the cultivation operation.

The United States Congress designated the Kiavah Wilderness in 1994, and it is managed by the Bureau of Land Management and the Forest Service. This wilderness area is part of the National Cooperative Land and Wildlife Management Area and the Bureau of Land Management’s Jawbone-Butterbredt Area of Critical Environmental Concern.

This case is the product of an investigation by the U.S. Forest Service with assistance from Enforcement and Removal Operations of Immigration and Customs Enforcement (ICE), Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, California National Guard, Kern County Sheriff’s Office, and Kern County Probation Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

Valdez and Vaca have pleaded guilty and are scheduled for sentencing on May 20 and July 29, respectively. They face a 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 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. — On Thursday, a federal jury found Filiberto “Beto” Chavez, 37, of Fresno, guilty of conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, conspiracy to engage in interstate travel for prostitution and two counts of use of a facility of interstate commerce to promote prostitution, U.S. Attorney McGregor W. Scott announced.

U.S. Attorney Scott stated: “This verdict is the result of law enforcement partners at the federal, state and local level working as one to pursue criminal gangs and their associates. We will continue to work tirelessly together to protect our communities and to hold accountable those who threaten our safety.”

Fresno Police Chief Jerry Dyer stated: “It excites me to see ruthless gang members removed from our society, especially those like Filiberto Chavez who treat women as property through violent acts of sex trafficking. Filiberto Chavez and his fellow conspirators have proven they belong behind bars.”

Fresno County District Attorney Lisa A. Smittcamp stated, “I congratulate U.S. Attorney Scott and Assistant U.S. Attorneys Kimberly Sanchez, Jeffrey Spivak, and Thomas Newman on an outstanding job bringing Filiberto Chavez to justice. This conviction is yet another example of how cooperation between our local law enforcement agencies, the District Attorney and the United States Attorney works for the people of Fresno County. The Federal and local teams came together under the umbrella of the Multi-Agency Gang Enforcement Consortium and worked as one, focused on high ranking members of the Lewis Street Bulldogs criminal street gang. Special thanks to Senior Deputy District Attorney Lewis and the Officers and Deputies of MAGEC who gave their all to put this case together.”

According to court documents and testimony, Chavez sold methamphetamine to a convicted codefendant, Robert Lockhart, on July 8, 2017. Convicted codefendant Amina Padilla stored methamphetamine for Chavez and gave a portion of what she had stored to convicted codefendant Carlos Melgar to deliver to Lockhart. On July 11, 2017, agents served search warrants at Padilla’s and Lockhart’s apartments and seized methamphetamine from both.

Additionally, in June and July of 2017, Chavez was pimping a prostitute using the assistance of Padilla to post prostitution ads on the internet. Chavez invited convicted codefendants Carlos Montano and Miguel Murillo to join him in New York to engage in prostitution activities with each of their prostitutes. On July 2, 2017, Chavez flew from California to New York with his prostitute. On July 18, 2017, Montano and Murillo flew from California to New York and subsequently began engaging in prostitution activities.

This case is the product of an investigation by Homeland Security Investigations, Federal Bureau of Investigation, Drug Enforcement Administration, Fresno Police Department, Multi‑Agency Gang Enforcement Consortium, Fresno County Sheriff’s Office, and Fresno County District Attorney’s Office. Assistant U.S. Attorneys Kimberly A. Sanchez, Jeffrey Spivak, and Thomas Newman are prosecuting the case.

Chavez is scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O’Neill on August 5. Chavez faces a maximum statutory penalty of life in prison and a $30,750,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

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. — Christopher L. Crawford, 38, of Houston, Texas, was sentenced today by U.S. District Judge Troy L. Nunley to 20 years in prison for enticing a minor online and traveling in interstate commerce to engage in illicit sexual conduct with a minor, U.S. Attorney McGregor W. Scott announced. 

According to court documents, in March 2017, Crawford met a young victim online in a video game and began texting and video chatting with her. Crawford told the victim that he was 15 years old. After a few weeks of chatting, Crawford made plans to come to Sacramento and meet the victim. In April 2017, Crawford travelled from Texas to California, and lured the victim away from her junior high school campus and molested her.

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

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

SACRAMENTO, Calif. — David Alhaqq, 56, of Stockton, was sentenced today by U.S. District Judge Morrison C. England Jr. to five years in prison for distributing cocaine base, U.S. Attorney McGregor W. Scott announced.  
Alhaqq pleaded guilty on January 3. According to court documents, in November 2016, a confidential source purchased six ounces of cocaine base from Alhaqq during a controlled buy in Lodi. Just before the buy, Alhaqq met with an unidentified third-party at a parking lot and retrieved a white box. Afterwards, Alhaqq met with the confidential source and gave him the white box, in exchange for $6,000. The box contained approximately six ounces of cocaine base (i.e., crack cocaine). 
This case was the product of an investigation by the Federal Bureau of Investigation, the Stockton Safe Streets Task Force, and the Stockton Police Department, with special assistance from the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney Quinn Hochhalter prosecuted the case.
 

SACRAMENTO, Calif. — Cameron Fox, 35, of Rocklin, pleaded guilty today to distributing child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, Fox met a minor victim online for sexual purposes and after meeting her in person, he sent her child pornography.

This case is the product of an investigation by the Federal Bureau of Investigation and the Marin County Sheriff’s Office. Assistant U.S. Attorney Rosanne Rust is prosecuting the case.

Fox is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on August 1. Fox 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.

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. — On Tuesday, after a four-day trial, a federal jury found Jonathan Mota, 37, guilty of attempting to kill a federal officer and found Dominic Adams, 27, guilty of assault on a federal officer, U.S. Attorney McGregor W. Scott announced.

According to court documents and evidence presented at trial, on October 6, 2017, Mota, Adams and four other inmates brutally attacked a Federal Bureau of Prisons officer who was a teacher working at the federal penitentiary in Atwater. The officer was repeatedly stabbed with homemade knives and kicked and beaten by the inmates.

According to court documents, on the day of the attack, Mota and Eric Chiago, 28, entered the copy room where the officer was making copies and repeatedly stabbed him. William Roe Acevedo, 33; Michael Martin, 30; Joey Thomas, 26; and Adams stationed themselves outside the room. When the victim was able to free himself and escape down the hallway, the six defendants tackled him and wrestled him to the floor where they repeatedly kicked, punched and stabbed him. Adams and Thomas also assaulted an officer who was responding to the attack.

Chiago, Acevedo, Martin, and Thomas pleaded guilty to aggravated assault. Chiago was sentenced to 15 years and eight months in prison, Acevedo was sentenced to 13 years in prison, Martin was sentenced to 12 years and six months in prison, and Thomas was sentenced to eight years and one month in prison.

This case is the product of an investigation by the FBI and the Federal Bureau of Prisons. Assistant U.S. Attorneys Brian K. Delaney and Kirk E. Sherriff are prosecuting the case.

Mota and Adams are scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on July 29. They face 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.

FRESNO, Calif. — On May 5, 2019, a federal grand jury returned a four-count indictment against Amanda Joy Nash, 31, of Bakersfield, charging her with bank fraud, U.S. Attorney McGregor W. Scott announced.

According to court documents, between August 20, 2017, and March 6, 2018, Nash obtained checks that had been stolen from the mail and altered to change the payee name. Nash deposited the checks into her own and her associates’ bank accounts.

This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Vincente A. Tennerelli is prosecuting the case.

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

SACRAMENTO, Calif. — Following a nearly two-year international investigation involving U.S. law enforcement and authorities in Germany and the Netherlands, federal prosecutors have charged three German nationals with being the administrators of Wall Street Market (WSM), which was one of the world’s largest dark web marketplaces that allowed vendors to sell a wide variety of contraband, including an array of illegal narcotics, counterfeit goods and malicious computer hacking software. A Brazilian national was also charged for allegedly acting as a moderator for WSM.

A criminal complaint filed Wednesday in United States District Court in Los Angeles alleges that the three defendants, who currently are in custody in Germany, were the administrators of WSM, a sophisticated online marketplace available in six languages that allowed approximately 5,400 vendors to sell illegal goods to about 1.15 million customers around the world. Like other dark web marketplaces previously shut down by authorities — SilkRoad and AlphaBay, for example — WSM functioned like a conventional e-commerce website, but it was a hidden service located beyond the reach of traditional internet browsers, accessible only through the use of networks designed to conceal user identities, such as the Tor network.

For nearly three years, WSM allegedly was operated on the dark web by the three men who now face charges in both the United States and Germany. An “exit scam” was allegedly conducted last month when the WSM administrators took all of the virtual currency held in marketplace escrow and user accounts – believed by investigators to be approximately $11 million – and then diverted the money to their own accounts. Exit scams are common among large darknet marketplaces, which typically hold money in escrow while a vendor delivers illicit goods.

A defendant linked to Wall Street Market was charged yesterday in a criminal complaint filed in U.S. District Court in Sacramento. Marcos Paulo De Oliveira-Annibale, 29, of Sao Paulo, Brazil, also faces federal drug distribution and money laundering charges for allegedly acting as a moderator who, among other things, mediated disputes between vendors and their customers. Annibale, who used the online monikers “MED3LIN,” also acted as a public relations representative for WSM by, among others things, promoting WSM on websites such as Reddit, according to the complaint. The case naming Annibale was unsealed today when Brazilian authorities executed a search warrant at his residence.

The three defendants arrested in Germany on April 23 and 24 and charged in the United States are a 23-year-old resident of Kleve, Germany; a 31-year-old resident of Wurzburg, Germany; and a 29-year-old resident of Stuttgart, Germany. The complaint charges the men with two felony counts – conspiracy to launder monetary instruments, and distribution and conspiracy to distribute controlled substances. These defendants also face charges in Germany.

The two cases filed in the United States are the result of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the U.S. Postal Inspection Service, IRS Criminal Investigation, and Homeland Security Investigations.

“We are on the hunt for even the tiniest of breadcrumbs to identify criminals on the dark web,” said U.S. Attorney McGregor W. Scott for the Eastern District of California. “The prosecution of these defendants shows that even the smallest mistake will allow us to figure out a cybercriminal’s true identity. As with defendant Marcos Annibale, forum posts and pictures of him online from years ago allowed us to connect the dots between him and his online persona ‘Med3l1n.’ No matter where they live, we will investigative and prosecute criminals who create, maintain, and promote dark web marketplaces to sell illegal drugs and other contraband.”

“We continue to keep pace with sophisticated actors on the dark web by increasing our technical abilities and working even more closely with our international law enforcement partners,” said U.S. Attorney Nick Hanna. “While they lurk in the deepest corners of the internet, this case shows that we can hunt down these criminals wherever they hide.”

“Just as international law-enforcement partners began dismantling Wall Street Market and taking action against its members, as alleged in the complaint, the site’s administrators decided to steal their customers’ money via an exit scam,” said Assistant Attorney General Brian Benczkowski.  “This operation sends a crystal-clear message: dark markets offer no safe haven.  The arrest and prosecution of the criminals who allegedly ran this darknet marketplace is a great example of our partnership with law enforcement authorities in Europe, with the support of Europol, and demonstrates what we can do when we stand together.”

“Investigators from many countries overcame the national, legal and diplomatic challenges to hold accountable sophisticated actors who operated one of the largest known encrypted marketplaces in the shadowy environment of the Darknet,” said Assistant Director Paul Delacourt of the FBI’s Los Angeles Field Office. “This case is an example of successful global collaboration among law enforcement entities who share the many challenges of prosecuting transnational criminal activity conducted by individuals who operate anonymously across borders.”

The affidavit in support of the criminal complaint filed in Los Angeles outlines how the defendants operated a sophisticated online marketplace that offered encrypted communications between buyers and sellers, as well as an online forum to discuss vendors and the quality of their wares. The affidavit also describes an international investigation that was able to identify the three administrators of WSM, show how they previously operated another German-based darknet marketplace that shut down in 2016, and link them to computer servers in Germany and the Netherlands that were used to operate WSM and process virtual currency transactions.

The three defendants allegedly created WSM, maintained the website, and operated the marketplace to ensure that buyers could access vendor pages and that financial transactions were properly processed. The investigation outlined in the complaint affidavit linked the three defendants to WSM in a number of ways, including their access to the WSM computer infrastructure. One defendant, for example, used virtual private networks to access WSM computers, but when a VPN connection would fail, his IP was revealed and authorities were able to identify his specific location.

The three defendants charged in Los Angeles were arrested in Germany after the WSM administrators conducted an exit scam in the wake of WSM recently becoming regarded as the world’s pre-eminent dark web marketplace and gaining a significant influx of new vendors and users, according to the affidavit. On April 16, vendors realized they could not collect the virtual funds that had been placed in escrow by their customers, which prompted German authorities to execute a series of arrest and search warrants.

The complaint affidavit identifies several cases that have been filed in the United States against WSM vendors. One darknet vendor who advertised on WSM is currently serving a 12‑year federal prison sentence after being convicted in the Western District of Wisconsin for distributing a fentanyl analogue resulting in the overdose death of a Florida resident who ordered a nasal spray laced with the powerful opioid from the vendor.

Other defendants include Jose Robert Porras III, 21, and Pasia Vue, 23, both of Sacramento, who were charged with drug distribution, money laundering, and illegally possessing firearms, in a 16-count indictment returned by a grand jury in the Eastern District of California. According to the indictment, Porras and Vue were using the online monikers “Cannabars” and “TheFastPlug,” to distribute marijuana, Xanax, and methamphetamine on various dark web marketplaces, including Wall Street Market.

“The dark web marketplace, Wall Street Market, was one of the largest operating hosts for vendors peddling illegal wares,” said DEA San Francisco Special Agent in Charge Chris Nielsen. “Law enforcement is always adapting to changes in technology and this case sends a clear message to those breaking the law and attempting to hide behind the illusion of anonymity – we will identify and find you. The success of this case is due to the excellent cooperation between law enforcement agencies from around the globe who delivered another blow to criminal networks operating in the underground cyberspace.”

“Anyone who thinks the dark web is a safe place to conduct illegal commerce should know they are not anonymous,” said Inspector in Charge Michael Ray of the Postal Inspection Service. “They will be found and they will be brought to justice. The Postal Inspection Service has a highly trained, skilled and committed cyber unit that works tirelessly with other law enforcement agencies to disrupt marketplaces and stop vendors from using the U.S. mail to ship illegal goods and dangerous drugs.”

“Taking down this site is a huge win for past and future victims of crimes perpetrated due to the proliferation of illegal products and services being sold,” said Chief Don Fort of IRS Criminal Investigation. “We are committed to using our unique financial investigative abilities to tackle these kinds of threats head on to protect citizens, to promote cyber security and to inform the global community.”

“HSI and our partners are at the forefront of combating narcotics trafficking, financial crimes and illicit activities purveyed by online black markets,” said HSI Acting Executive Associate Director Alysa D. Erichs. “While criminal operators may continue to grow the reach of their businesses through these dark web marketplaces, ultimately they do not escape the reach of law enforcement. We continue to investigate, disrupt, and dismantle hidden illegal networks that pose a threat in cyberspace.”

The charges against the three WSM administrators were announced today in conjunction with authorities in Germany and the Netherlands.

The cases in the United States are being prosecuted by Assistant U.S. Attorney Grant Rabenn of the Eastern District of California, Assistant U.S. Attorneys Ryan White and Puneet Kakkar of the Central District of California, Justice Department Trial Attorney C. Alden Pelker of the Criminal Division’s Computer Crime and Intellectual Property Section, and Justice Department Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section.

The U.S. investigation was conducted with support and coordination provided by the Department of Justice’s multi-agency Special Operations Division.

The Justice Department thanks its law enforcement colleagues at the German Federal Criminal Police (the Bundeskriminalamt), the German Public Prosecutor’s Office in Frankfurt, the Dutch National Police (Politie), the Netherlands National Prosecutor’s Office, Federal Police of Brazil (Policia Federal), Europol and Eurojust. Significant assistance was provided by the Office of International Affairs at the Justice Department and the Organized Crime and Drug Enforcement Task Force program.

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

SACRAMENTO, Calif. — Robert Elias Padilla, 41, of Vacaville, was sentenced Thursday by U.S. District Judge Troy L. Nunley to 14 years in prison for possessing methamphetamine for distribution, U.S. Attorney McGregor W. Scott announced.

Padilla pleaded guilty on January 31. According to court documents, on June 6, 2018, law enforcement agents had a warrant to search Padilla and his car for evidence of drug-trafficking and firearms. They located Padilla in his car and followed him to a parking lot in Vacaville. When the officers tried to stop Padilla’s car, Padilla tried to flee, hitting a parked car in the process. At the same time, Padilla threw a backpack from the driver’s-side window, and officers later found over 5.5 pounds of methamphetamine in the backpack. Padilla was carrying over $2,300 in cash when he was arrested. 

This case was 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.

SACRAMENTO, Calif. — U.S. District Judge Morrison C. England Jr. sentenced Saber A. Shehadeh, 76, of Sacramento, to four years and nine months in prison for an arson fraud scheme, U.S. Attorney McGregor W. Scott announced.

On June 14, 2018, a jury found Shehadeh guilty of three counts of mail fraud. According to evidence presented at trial, Saber Shehadeh made a series of false statements to State Farm Insurance Company to get insurance money after two fires destroyed buildings he owned at the corner of 10th and E Streets in Sacramento’s Alkali Flat neighborhood. The fires occurred on December 27, 2009, and August 15, 2010, and ultimately destroyed a historical building where Saber Shehadeh ran a business called Tru Value Market. Prior to the fires, the financial condition of Shehadeh’s Tru Value Market had declined. He experienced suspension from USDA’s food stamp program, bounced mortgage checks, and frequent overdrafts on his business bank account, and his alcohol license was placed in jeopardy due to a conviction for food stamp fraud and receiving stolen property.

After the second fire, Saber Shehadeh became a silent partner in a supposed construction company that was then used to submit inflated invoices for post-fire cleanup to State Farm. During State Farm’s investigation of the insurance claims, Saber Shehadeh made a series of false statements about the status of his market prior to the fires, and submitted fraudulent documents and made false statements about the debris removal performed after the second fire. Saber Shehadeh received over $1.4 million in insurance proceeds after the fires, enabling him to pay off his mortgage and still have several hundred thousand dollars left over to invest in new businesses and to share with family members, including his co-defendant Jamal Shehadeh.

This case was the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sacramento Fire Department; the Sacramento Metropolitan Fire Department; and the Sacramento Sheriff’s Department. Assistant U.S. Attorneys Michael D. Anderson and Christopher S. Hales prosecuted the case.

On February 10, 2018, Jamal Shehadeh pleaded guilty to two counts of arson to commit a felony and was sentenced to 30 years in prison. According to his plea agreement, Jamal Shehadeh set or caused to be set the first fire at Saber Shehadeh’s 10th and E Street property. On April 17, 2018, co-defendant, Brian Stone, was convicted of 13 counts of mail and wire fraud after a separate jury trial, and on September 27, 2018, he was sentenced to six years in prison.

FRESNO, Calif. — Steven Andrew Dobson, 33, of Delano, was sentenced today by U.S. District Judge Lawrence J. O’Neill to 10 years in prison, to be followed by 10 years of supervised release, for receiving and distributing child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, from approximately March 1, 2016, through November 11, 2016, in Kern County, Dobson was found to have received and distributed through the internet between 150 and 300 images of minors engaged in sexually explicit conduct. The images also involved depictions of violence, and included depictions of prepubescent minors.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brian W. Enos prosecuted the case.

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

SACRAMENTO, Calif. — Bar Shani, 27, of San Francisco, pleaded guilty today to conspiring to launder money, U.S. Attorney McGregor W. Scott announced.

According to court documents, between October 2016 and November 2017, Shani conspired to launder the cash proceeds of an illegal gambling business run by Orel Gohar, 28, of San Francisco, and Yaniv Gohar, 35, of Berkeley, that placed and maintained video slot machines at businesses in Northern California, including Sacramento and other locations in the Eastern District of California.

According to court documents, Shani conspired with Atir Dadon, 34, of Sherman Oaks, and Orel Gohar to launder the proceeds of the gambling business. They agreed that Shani and Dadon would take the cash from the gambling business and use it to pay the workers in their cosmetics business. In exchange, Shani and Dadon would arrange for Orel Gohar to receive checks from the cosmetics business. Dadon indicated in the memo lines on the checks that Orel Gohar had provided consulting and training services when in fact, he had not. They used code words in their conversations about the transactions, referring to the money as bottles of alcohol or other non-cash items. Between October 2016 and November 2017, Shani and Dadon laundered over $150,000 from the Gohars’ gambling business. Dadon pleaded guilty on April 5.

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

Yaniv Gohar and Orel Gohar fled the United States after their arrest in December 2017 and remain at large. Anyone with information about their whereabouts should call the FBI at (916) 746-7000.

Charges are pending against co‑defendants Adam Atari, 35, of Sherman Oaks; Raz Razla, 48, of Sherman Oaks; and Eran Buhbut, 33, of Oakland. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Shani and Dadon are scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on July 12. They face a statutory maximum penalty of 20 years in prison and a fine of up to $500,000, or twice the value of the monetary instrument or funds involved, whichever is greater. 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. — 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.

Jake Edward Howland, 22, of Vallejo, was charged with one count of possessing a machine gun illegally. According to court documents, on February 24, 2019, sheriff’s deputies responded to a call reporting that someone was shooting a fully automatic weapon on the levee in the unincorporated area of Solano County, near Dixon. The deputies located Howland and found an empty .40-caliber high-capacity ammunition magazine on his person along with a .40-caliber pistol nearby that had been modified to function as a machine gun. Several witnesses had seen Howland firing the pistol before the deputies arrived. This case is the product of an investigation by the Solano County Sheriff’s Office with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office.

Kenny Xyrus Losito, 30, of Vacaville, was charged with one count of possessing a firearm as a felon. According to court documents, on March 14, 2019, during a traffic stop, officers noticed a pistol hidden under Losito’s leg on the driver’s seat. A search of the vehicle revealed over 1 pound of marijuana, several dozen Alprazolam (Xanax) pills, and a loaded Ruger 9 mm pistol. Losito was also carrying over $5,000 in cash at the time. Losito cannot lawfully possess firearms or ammunition because he has previously been convicted of a felony offense. This case is the product of an investigation by the Vacaville Police Department with assistance from the FBI’s Solano County Violent Crimes Task Force and the Solano County District Attorney’s Office. 

Christopher Ballez, 34, of Oroville, is charged with one count of being a felon in possession of a firearm. According to court documents, sheriff’s deputies recovered a Sig Sauer handgun by the side of the road after Ballez had attempted to discard it while being followed by a deputy. Ballez is a previously convicted felon and is therefore prohibited from possessing a firearm. This case is the product of an investigation by the Butte County Sheriff’s Office and the FBI. Assistant U.S. Attorney James Conolly is prosecuting the case.

Marquez Jeter, 42, of Stockton, was charged with one count of unlawful trafficking in firearms, three counts of being a felon in possession of a firearm, and one count of illegal possession of a machinegun. According to court documents, on March 13, 2019, Marquez Jeter sold a Glock pistol to a confidential informant in exchange for $1,200. On April 10, 2019, Jeter offered the confidential informant access to a new supply of firearms. The next day, Jeter sold him 15 guns for $16,500. Jeter is a previously convicted felon and cannot lawfully possess firearms. This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Michael W. Redding is prosecuting the case.

If convicted, Howland, Losito, and Ballez face a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted, Jeter faces five years in prison and a $250,000 fine for unlawful dealing in firearms, 10 years in prison for illegal possession of a machinegun, and 10 years in prison and a $250,000 fine for the three counts of being a felon in possession of a firearm. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Edilberto Vidrio, 53, and Elena Castillo, 46, both of Fresno, charging them with conspiracy to distribute and possess with the intent to distribute methamphetamine, cocaine and heroin, and possession with the intent to distribute methamphetamine, cocaine, and heroin, U.S. Attorney McGregor W. Scott announced. 

According to court documents, Fresno police officers assisted Monterey County District Attorney’s Office to serve a search warrant unrelated to narcotics at Vidrio and Castillo’s apartment. They found approximately 30 pounds of methamphetamine, a pound of cocaine, and 1.8 pounds of heroin packaged for sale in their apartment. Scales and other items associated with the sale of narcotics were also found in their apartment.

This case is the product of an investigation by the Fresno Police Department, the Drug Enforcement Administration, and the Monterey County District Attorney’s Office. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.

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

FRESNO, Calif. — A federal grand jury returned an eight-count indictment on April 11 against Orlando Gillam, 45, of Fresno, charging him with mail fraud for a scheme that defrauded insurance carriers, 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 were not Dunamis clients.

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

If convicted, Gillam 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. — On Tuesday, after a six-day trial, a federal jury found Jaime Mayorga, 40, and Ruben Rodriguez, 42, both of Sacramento, guilty of one count of conspiracy to commit wire fraud, U.S. Attorney McGregor W. Scott announced.

U.S. Attorney Scott stated: “Mayorga and Rodriguez took advantage of members of the Latino community who hoped to become homeowners and manipulated the real estate process for personal gain. As so often occurs in these cases, the result was losses to the financial institutions and neighborhoods burdened with foreclosed properties. We are grateful for the diligence and professionalism of the FBI in investigating this case.”

On July 14, 2011, Mayorga, Rodriguez, and five others were charged by indictment with conspiracy to commit wire fraud. The defendants, including Mayorga and Rodriguez, worked for Delta Homes & Lending, a Sacramento-based real estate and mortgage lending company that falsified home loan applications to obtain mortgage loans for borrowers, many of whom did not and could not qualify for a loan without the lies submitted by Delta employees. Mayorga and Rodriguez were real estate agents and loan officers. The now defunct Delta Homes was founded by co-defendant Moctezuma “Mo” Tovar, 49, of Sacramento.

According to court documents, Delta opened one office in 2003 and eventually had multiple offices in Sacramento, with additional branch offices in Woodland, Yuba City, and Southern California. Rodriguez and Mayorga both started working at the original Delta office on Enterprise Drive in Sacramento. Later, they both moved to a branch on Franklin Boulevard, and Rodriguez went on to work at other Delta branches, including a large branch office located on Howe Avenue.

According to court documents and evidence presented at trial, Delta targeted the Latino community with advertisements in Spanish that heralded the company’s ability to obtain home loans for borrowers who otherwise would not qualify for a mortgage. In addition to advertisements in which Delta claimed to be “Hispanics Serving Hispanics,” Delta employees solicited clients at flea markets and by going door-to-door through the community.

In order to obtain mortgages, the defendants falsified information on loan applications regarding the clients’ income, occupation, and personal savings. Straw buyers were sometimes used when the true borrower did not have a sufficient credit score to qualify. The defendants also deposited money into borrowers’ bank accounts to meet the lenders’ requirement that the borrower have money on hand, taking the money back after acquiring the verification of deposited funds that the lenders also required.

The evidence at trial showed that the defendants’ fraud was also personally lucrative. During the investigation, Rodriguez estimated that in 2006 alone, he earned more than $400,000. Similarly, Mayorga told agents that although he earned a salary when he started at Delta, he shifted to commission-based compensation and then earned between 50 and 85 % of the brokerage fees. Mayorga stated that he earned more than $500,000 in 2005.

The aggregate sale price of the homes involved in the conspiracy was in excess of $10 million, and as a result of the conspiracy, mortgage lenders and others suffered losses of at least $4 million.

Co-defendants Tovar, Manuel Herrera, 39, of Davis; Sandra Hermosillo, 57, of Woodland; and Jun Michael Dirain, 46, of Antelope, all pleaded guilty to one count of conspiracy to commit wire fraud. Christian Parada-Renteria, 43, of Woodland, pleaded guilty to two counts of concealing felonies related to the wire fraud conspiracy.

Rodriguez and Mayorga are scheduled to be sentenced on August 6 by U.S. District Judge John A. Mendez. The court has not yet set a sentencing date for Tovar, Herrera, Hermosillo, and Dirain. Parada-Renteria was sentenced to serve one year in prison.

Each of the defendants faces a maximum statutory penalty of 20 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.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Brian A. Fogerty and Justin L. Lee are prosecuting the case.

SACRAMENTO, Calif. — Ruben Ruiz Jr., 27, of Escondido, was sentenced today by U.S. District Judge John A. Mendez to 10 years in prison for possessing heroin for distribution, U.S. Attorney McGregor W. Scott announced.

Ruiz pleaded guilty on June 19, 2018. According to court documents, on February 28, 2018, a California Highway Patrol officer stopped Ruiz while he was driving northbound on Interstate 5 near Mt. Shasta in Siskiyou County. When the officer had his narcotics detection canine run a sweep around Ruiz’s truck, the dog alerted. A subsequent search revealed over 14 pounds of heroin. Ruiz was on federal supervised release at the time, after having been released from federal custody for a separate narcotics offense three months earlier.

According to the plea agreement, Ruiz said that he was supposed to receive a call when he arrived in Portland with further instructions.

This case was the product of an investigation by the Drug Enforcement Administration, the California Highway Patrol, and the Siskiyou Unified Major Investigations Team. 

FRESNO, Calif. — A federal grand jury returned an 18-count indictment on April 11 against Deena Vang Lee, 38, of Fresno, charging her with wire fraud, aggravated identity theft, aiding and assisting in the preparation and presentation of false and fraudulent tax returns, and making and subscribing false and fraudulent tax returns, U.S. Attorney McGregor W. Scott announced.

According to court documents, between February 2012 and February 2016, Lee prepared tax returns for a fee for friends, family, and other acquaintances that claimed thousands of dollars in tax credits for education and child care expenses that were not actually incurred. Lee also submitted fraudulent tax returns on her own behalf, failing to report the income from her tax preparation services.

This case is the product of an investigation by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Vince Tennerelli is prosecuting the case.

If convicted, Lee 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.

FRESNO, Calif. — Oscar Ivan Salazar-Avalos (Salazar), 29, a citizen of Mexico, was sentenced today to six years and nine months in prison for conspiring to distribute and possess with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced. 

Salazar’s sentence follows his guilty plea last November.  According to court documents, Salazar and co-defendant Jose Manuel Sotelo-Mendoza, 26, of Ceres, delivered 15 pounds of methamphetamine to an undercover officer in Delano after Salazar negotiated with the officer for the delivery of the drug for $3,400 per pound for a total of $51,000. Salazar and Sotelo met the source of supply in Castaic in the northern part of Los Angeles County to obtain the methamphetamine. 

Sotelo pleaded guilty on February 19.  He is scheduled to be sentenced on May 20.

This case is the product of an investigation by the Central Valley High Intensity Drug Trafficking Area Task Force, consisting of law enforcement officers of Homeland Security Investigations, California Highway Patrol, Bureau of Investigation of the California Department of Justice, Fresno Police Department, and Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

FRESNO, Calif. — Mauricio Vaca-Bucio (Vaca), 31, of Michoacán, Mexico, pleaded guilty today to conspiring to manufacture, distribute, and possess with intent to distribute marijuana, U.S. Attorney McGregor W. Scott announced.

According to court documents, Vaca and his co-defendants Felipe Angeles Valdez‑Colima, 35, and Rodolfo Torres-Galvan, 29, also of Mexico, were apprehended after a two-month investigation in the Kiavah Wilderness, a federally designated wilderness area in the Sequoia National Forest. Law enforcement officers saw Torres and Valdez emerge from the forest and enter a Camaro driven by Vaca. They were subsequently stopped in Weldon. Officers found freshly harvested marijuana in the Camaro and located over 1,800 marijuana plants at the grow site on the trail that led to the drop point. The officers also found deadly illegal pesticides, including carbofuran and zinc phosphide, in both the vehicle and at the grow site. In pleading guilty, Vaca agreed to pay over $7,000 in restitution to the U.S. Forest Service for the damage he caused to the National Forest.

The United States Congress designated the Kiavah Wilderness in 1994, and it is managed by the Bureau of Land Management and the Forest Service. This wilderness area is part of the National Cooperative Land and Wildlife Management Area and the Bureau of Land Management’s Jawbone-Butterbredt Area of Critical Environmental Concern.

This case is the product of an investigation by the U.S. Forest Service with assistance from Enforcement and Removal Operations of Immigration and Customs Enforcement (ICE), Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, California National Guard, Kern County Sheriff’s Office, and Kern County Probation Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

Vaca is scheduled for sentencing on July 29. He faces a 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. Valdez and Torres previously entered guilty pleas and are set for sentencing on May 20 and April 29, respectively.

SACRAMENTO, Calif. — Joseph Woloszyn, 33, of Sacramento, was sentenced today by U.S. District Judge John A. Mendez to two years and three months in prison for obstruction of justice and perjury, U.S. Attorney McGregor W. Scott announced.

According to court documents, on June 28, 2017, Woloszyn provided false testimony under oath at a district court evidentiary hearing in the case of United States v. M.W. (2:13‑cr‑067-KJM). Woloszyn testified on behalf of the defendant and provided false statements related to his gang tattoos, nickname, phone number, and contacts with the defendant. Prior to his testimony, during a recorded jail call, Woloszyn told the defendant, “When they come to me, good luck.” Woloszyn further assured the defendant, “I’m going to stay solid all the way through, regardless.”

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Cameron L. Desmond prosecuted the case.

FRESNO, Calif. — A Madera pharmacist and two others were arrested today in connection with a conspiracy to distribute oxycodone and hydrocodone, U.S. Attorney McGregor W. Scott announced.

On April 11, a federal grand jury returned a 42-count indictment, charging Ifeanyi Vincent Ntukogu, 44, of Fresno, a pharmacist, with one count of conspiracy to distribute and possess with intent to distribute controlled substances and 17 counts of distribution of controlled substances. Kelo White, 38, of Fresno, was charged with one count of conspiracy to distribute and possess with intent to distribute controlled substances and 12 counts of possession with intent to distribute controlled substances. Donald Ray Pierre, 50, of Fresno, was charged with one count of conspiracy to distribute controlled substances, 10 counts of possession with intent to distribute controlled substances, and two counts of identity theft.

According to court documents, Ntukogu owned and operated New Life Pharmacy in Madera. Between December 2014 and November 2018, Ntukogu filled fraudulent prescriptions for oxycodone and hydrocodone, Schedule II controlled substances, then dispensed the controlled substances to White and Pierre. 

This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the California Department of Health Care Services. Assistant U.S. Attorney Melanie L. Alsworth is prosecuting the case.

Ntukogu was arrested at the New Life Pharmacy in Madera and White and Pierre were arrested at their homes in Fresno.

If convicted, Ntukogu, White and Pierre each face a maximum statutory penalty of 20 years in prison and a $1 million fine in connection with the drug charges. Additionally, Pierre faces a maximum statutory penalty of 20 years in prison and a $250,000 fine in connection with the identity theft charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Haitham Eid Habash, aka Eddie Habash, 55, of Hawthorne, was sentenced today to five years and three months in prison for his role in supplying synthetic drugs to wholesale internet drug traffickers, U.S. Attorney McGregor W. Scott announced. Habash was also ordered to forfeit over $193,000 in proceeds derived from drug trafficking.

According to court documents, in 2015, Habash manufactured smokeable synthetic cannabinoids, commonly known as “spice,” which contained AB-Chminaca, AB-Pinaca, and XLR11, all of which are Schedule I controlled substances. Habash personally negotiated with and obtained the raw chemicals directly from Chinese suppliers. He would then dilute them with a solvent before mixing them with flavoring to add to dried plant material. Habash sold his drugs under various brand names, including Bizarro and his own special blend, Mr. High. His customers included his co-defendant Majed Bashir Akroush, aka Magic Mike, 51, of Bakersfield, who sold Habash’s product over the internet under the business names of Magic Mans Wholesale, Blue Whale Wholesale, and World of Incense.

According to the plea agreement, on April 14, 2015, CHP officers intercepted 95 pounds of synthetic cannabinoid products manufactured by Habash in Bakersfield.

The case against Akroush is still pending. He is charged with the drug conspiracy and two substantive drug offenses, all of which carry a maximum statutory penalty of 20 years in prison and a $1 million fine. Akroush is also charged with conspiring to structure several million dollars obtained from his drug trafficking activity. The structuring charge carries 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.

 This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the U.S. Drug Enforcement Administration, IRS Criminal Investigation, Federal Bureau of Investigation, Homeland Security Investigations, U.S. Postal Inspection Service, California Highway Patrol, California Department of Motor Vehicles, Kern County Probation, Kern County Sheriff’s Office, and Bakersfield Police Department. OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of OCDETF 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.

Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

SACRAMENTO, Calif. — Today, the U.S. Attorney’s Office dedicated the John K. Vincent Memorial Conference Room to honor the legacy of their friend and colleague.

John Vincent provided selfless service to the U.S. Attorney’s Office and his country for more than thirty-two years until his untimely death in 2018. His tenure in the office was marked by inspiring leadership, devoted service, tenacious advocacy on behalf of the United States, and steady guidance as the office’s moral and ethical guiding star in the pursuit of justice.

John Vincent was a public servant of the highest order. He came to the office as an Assistant U.S. Attorney (AUSA) in 1986 and was promoted to Chief of the Special Prosecutions Unit in 1997, a role he held until 2000. He was then promoted to First Assistant U.S. Attorney, and in 2001, he became Acting and then court-appointed U.S. Attorney until 2003. In 2003, Mr. Vincent became the district’s Criminal Chief, a role he held until 2018 while continuing to carry his own portfolio of complex cases and supervising the office’s National Security Unit. His contributions to the office were invaluable and helped to form and sustain the heart and soul of the office. Mr. Vincent exemplified integrity, and he personified the principle that the office’s mission is to always do the right thing for the right reason.

In recognition of his public service, Mr. Vincent was awarded the Director’s Award three times: in 1991 and 1996 for Superior Performance as an AUSA, and then in 2018 for Superior Performance in a Managerial Role. He worked tirelessly to pursue justice, and he embodied the best qualities of a prosecutor and a leader.

To recognize John Vincent’s many contributions to the Office, U.S. Attorney McGregor W. Scott chose to dedicate the main conference room in the U.S. Attorney’s Office in Sacramento in his honor. This facility is the heart of the office and is used almost continually to hold presentations, trainings, press conferences, staff meetings, and holiday events. It is the room that AUSAs enter on their first day of service to take their oath and where the office celebrates AUSAs as they bid their farewell. It is fitting that John Vincent’s name will overlook the many activities that will take place in this room.

SACRAMENTO, Calif. — Claudia Humphrey, 62, of American Canyon, was sentenced today by U.S. District Judge Troy L. Nunley to six months in prison and ordered to pay $71,423 in restitution for theft of public money and falsifying records in a federal investigation, U.S. Attorney McGregor W. Scott announced. Judge Nunley ordered Humphrey to self-surrender on May 23 to begin serving her sentence.

According to court documents, Humphrey was the executive director of LIFT3 Support Group Inc., a non-profit organization in Fairfield that offered transitional shelter assistance and other services to victims of sexual assault, domestic violence, and dating violence, primarily serving residents in Solano County. Humphrey, through LIFT3, sought and received federal grants from the Department of Justice, Office on Violence Against Women (OVW) in 2011 and 2012. Humphrey transferred or caused to be transferred over $270,000 in grant funds that were to be used only for assisting victims of domestic violence into bank accounts she controlled. Humphrey used over $70,000 of those victim funds on personal expenses such as travel, shopping, and payments to her family members, among other things.

According to court documents, between October 2014 and August 2015, in an effort to conceal her embezzlement of federal funds, Humphrey obstructed the efforts of an OVW audit of LIFT3. Humphrey falsified purchase documents showing that computers were purchased, and altered and falsified expense ledgers and time sheets.

This case was the product of an investigation by the Department of Justice Office of the Inspector General. Assistant U.S. Attorney Matthew C. Thuesen handled the sentencing in the case.

SACRAMENTO, Calif. — A federal grand jury returned a 28-count indictment today against Myrna Kawakami, 66, of Fairfield, charging her with assisting in the preparation of false tax returns and filing her own false tax returns, U.S. Attorney McGregor W. Scott announced. 

According to court documents, Kawakami ran a tax preparation business in Fairfield called K.I.M. Tax Book Services where she assisted taxpayers in preparing fraudulent federal income tax returns. The returns claimed thousands of dollars in itemized deductions based on ineligible expenses, resulting in fraudulent tax refunds. Kawakami also submitted fraudulent tax returns on her own behalf, significantly underreporting the income from her tax business and claiming education credits based on ineligible expenses. 2:19-cr-067 TLN

On January 24, 2019, a federal grand jury returned a four-count indictment against El Dorado Hills couple Brian Beland, 35, and Denae Beland, 35, charging them with obstructing an IRS investigation. Brian Beland was also charged with filing false tax returns. According to court documents, Brian Beland filed tax returns in 2011, 2012, and 2013, in which he reported false business expenses. Following the initiation of an audit in 2014, Brian and Denae Beland made false statements to IRS revenue agents and provided revenue agents with spreadsheets containing false business expenses in an attempt to obstruct and impede the audit.
2:19-cr-021 WBS

These cases are the product of investigations by the IRS Criminal Investigation.

Assistant U.S. Attorney Mira Chernick is prosecuting U.S. v. Kawakami. Assistant U.S. Attorney Amy S. Hitchcock is prosecuting U.S. v. Beland. If convicted, Kawakami faces a maximum statutory penalty of three years in prison and a $100,000 fine. If convicted, Brian Beland faces a maximum statutory penalty of three years in prison and a $100,000 fine. If convicted, Denae Beland faces a maximum statutory penalty of three years in prison and a $5,000 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.

FRESNO, Calif. — Erin Elizabeth Peterson, 41, of Bakersfield, was sentenced Monday to seven and a half years in prison for possession of stolen U.S. mail and possession with intent to distribute methamphetamine U.S. Attorney McGregor W. Scott announced. Peterson was also ordered to pay $92,908 in restitution.

According to court documents, from July to December 2017, Peterson made fraudulent transactions at various retail establishments in Bakersfield using credit and debit cards stolen from the mail. Peterson was identified from photographs obtained from the stores where the stolen cards were used. On December 28, 2017, a federal search warrant was executed at Peterson’s residence and 428 pieces of stolen mail, 31 stolen credit/debit cards, over a hundred personal and business checks and a counterfeit arrow key used to access U.S. community mailboxes were found. Also located in the residence were approximately 140 grams of methamphetamine, $1,400 in cash, drug packaging material, and a digital scale.

Peterson admitted that she had been stealing mail for approximately one year, usually from mailboxes in Bakersfield wherever her counterfeit arrow key would work. Peterson admits that she primarily looked for mail that contained debit or credit cards. When presented with multiple photographs of a female suspect seen shopping at various stores in Bakersfield using stolen debit and credit cards, Peterson admitted that she was in fact that person.

Peterson also admitted that the methamphetamine in her residence was hers and that she sold crystal methamphetamine to help support her habit. Peterson admitted that she obtained about a quarter pound of crystal methamphetamine a week and sold ounces for $200.

This case was the product of an investigation by the U.S. Postal Inspection Service and the Bakersfield Police Department. Assistant U.S. Attorney Brian K. Delaney prosecuted the case.

FRESNO, Calif. — Donald Landry Beverly, 25, of Bakersfield, was sentenced Monday to one year and one day in prison for assaulting a federal officer, U.S. Attorney McGregor W. Scott announced.

According to court documents, on July 19, 2018, Beverly confronted a letter carrier for the United States Postal Service while she was performing her regular mail delivery duties. He complained to the letter carrier that certain mail that he was expecting had not been delivered. After an extended discussion, Beverly slammed his forearm and elbow against her face and shoulder without warning or provocation. The assault resulted in significant bruising to her face and arm.

This case was the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Brian Delaney, Brian Enos, and Katherine Schuh prosecuted the case.

SACRAMENTO, Calif. — U.S. District Judge Kimberly J. Mueller sentenced Steven Brian Homan, 62, of Benicia, today to six months in prison, to be followed by two years of supervised release, for one count of concealment of bankruptcy assets, U.S. Attorney McGregor W. Scott announced.

According to court documents, Homan sought protection from and discharge of more than $1.3 million in personal and business debt. He also wanted to preserve a non-exempt cabin in Redding from liquidation. To protect the cabin, Homan arranged to sell it from his bankruptcy estate to a relative for $100,000. However, Homan concealed from the bankruptcy trustee that the cabin had been destroyed by fire before the trustee accepted the offer.

After the fire, Homan filed an insurance claim that settled for more than $258,000 in losses associated with the cabin and personal property contained in the cabin at the time of the fire. That money constituted property of the bankruptcy estate, which Homan concealed from the trustee. After the sale of the cabin was complete, the bankruptcy trustee learned of the fire and concealed insurance settlement.

This case was the product of an investigation by the Federal Bureau of Investigation and the IRS Criminal Investigation. Assistant U.S. Attorney André M. Espinosa prosecuted the case.

BAKERSFIELD, Calif. — Noel Carter, 45, of Bakersfield, was sentenced today for conspiring with Bakersfield police officers Damacio Diaz and Patrick Mara to distribute methamphetamine and marijuana that Diaz and Mara seized in the course of their duties as police officers, U.S. Attorney McGregor W. Scott announced.

U.S. District Judge Lawrence J. O’Neill sentenced Carter to seven and a half years in prison, to be followed by five years of supervised release. Carter was also ordered to pay $70,513 in restitution to his former employer and to forfeit $286,251 representing proceeds from his drug trafficking activity.

According to court documents, from April 2012 to August 2015, Carter conspired with Diaz and Mara, who deliberately failed to submit the seized drugs into the Bakersfield Police Department evidence room and instead provided the stolen narcotics to Carter so that Carter could sell those narcotics for profit.

In May 2016, Diaz pleaded guilty to possessing with the intent to distribute methamphetamine, as well as receiving bribes and making a false income tax return. In June 2016, Mara pleaded guilty to conspiring to distribute, and to possess with the intent to distribute, methamphetamine. Both were removed from active duty with the Bakersfield Police Department and are currently serving federal prison sentences.

According to the plea agreement in October 2018, Carter agreed to pay restitution to Pacific Workplaces, his former employer. Starting in September 2016 and up until his termination in September 2017, Carter was a contract manager for Pacific Workplaces, a virtual office and short-term office rental business. Carter admitted to embezzling money from the company and depositing the money into his personal account.

This case was the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the IRS Criminal Investigation, and the Bakersfield Police Department. Assistant U.S. Attorneys Brian K. Delaney and Angela Scott prosecuted the case.

FRESNO, Calif. — A federal grand jury returned a one-count indictment on Thursday, April 4, 2019, against Jose Luis Rivas Jr., 26, of Bakersfield, charging him with conspiracy to distribute and possess with intent to distribute, heroin, methamphetamine, cocaine and fentanyl, U.S. Attorney McGregor W. Scott announced.

According to court documents, between June 2016 and May 2018, Rivas conspired with another Bakersfield man, Juan Pina, 23, to use a national parcel service company to ship packages of narcotics to various distributors around the country. Records filed with the court indicate that Rivas and Pina made kilogram-quantity shipments of controlled substances on several occasions.

On May 3, 2018, search warrants were executed for Pina’s residence and vehicle. Pina was arrested while driving his vehicle and in the back seat was a three-foot-long rectangular box, similar in size to the earlier shipments. The package was searched and found to contain approximately 700 grams of cocaine. In a search of Pina’s home, agents recovered over 2 pounds of heroin, over 2 pounds of cocaine, approximately 70 grams of methamphetamine as well as a loaded handgun and three long guns all found within close proximity to the drugs.

On March 27, 2019, when search warrants were executed for Rivas’s residence, agents recovered 12 cellphones and arrested Rivas.

On April 8, 2019, Juan Pina plead guilty to conspiracy to distribute and possess with intent to distribute, cocaine, methamphetamine, and heroin.

This case is the product of an investigation by Homeland Security Investigations and Bakersfield Police Department. Assistant U.S. Attorneys Brian K. Delaney and Thomas Newman are prosecuting the case.

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

Pina is scheduled to be sentenced on August 12. He faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — A Rancho Cordova woman was indicted on Thursday, charged with distribution of fentanyl and oxycodone and other opioids as a result of a coordinated operation by the U.S. Attorney’s Office, the Federal Bureau of Investigation, Homeland Security Investigations, the Drug Enforcement Administration, and the U.S. Postal Inspection Service that has identified, disrupted, and prosecuted illegal operators on the darknet.

U.S. Attorney McGregor W. Scott, FBI Special Agent in Charge Sean Ragan, HSI Special Agent in Charge Ryan L. Spradlin, DEA Special Agent in Charge Christopher Nielsen, and USPIS Inspector in Charge Rafael E. Nunez made the announcement today.

U.S. Attorney Scott stated: “Building on the seizure and shut-down of the AlphaBay criminal marketplace in 2017, the cases we are discussing today continue to send a clear message, that if you choose to engage in criminal transactions on the darknet, you will have federal law enforcement from every district and state across the nation pursuing you. There is no hiding, no safety, and no anonymity in the darknet.”

“The darknet supports an illegitimate commerce system where criminals think they can anonymously traffic dangerous substances and goods into the Unites States,” said Ryan L. Spradlin, Homeland Security Investigations Special Agent in Charge for northern California. “HSI is watching and taking down criminals by using innovative technology and uniquely trained analysts and special agents to uncover this type of illicit and dangerous activity. Our country is in the midst of a serious opioid addiction crisis; and some users will do anything to get their hands on drugs like fentanyl. Tens of thousands of people die every year from overdosing on opioids. We all need to do our part to police the streets and all corners of the internet to make sure people do not have unlimited access to these potentially deadly substances.”

“The darknet has become a one-stop shop for individuals peddling powerful opioids, like fentanyl, because of the anonymity it seemingly offers to those who seek to evade detection. As these investigations demonstrate, sophisticated technology is no match for law enforcement when resources and expertise are combined to achieve a common public-safety goal.  We will identify and prosecute those who distribute drugs under this illusion of secrecy,” stated DEA Special Agent in Charge Chris Nielsen.

San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors are continuously working with the U.S. Attorney’s Office and our partners in law enforcement in operations just like this one to keep dangerous drugs out of the communities we serve.”

The operation, which was initiated in September of last year, has yielded 14 arrests, four indictments, and 40 search and tracking warrants. In addition, agents have seized $423,912 in U.S. currency, $1,937,410 in cryptocurrency, four vehicles, two pill presses, and six firearms. Agents have also made large seizures of narcotics, including heroin, cocaine, methamphetamine, LSD, psilocybin mushrooms, marijuana, and oxycodone.

Two recent cases exemplify the work of the coordinated operation.

United States v. Carrie Alaine Markis, et al. (Case No. 2:19-cr-062 JAM):

On April 4, 2019, a federal grand jury returned a six-count indictment against Carrie Alaine Markis, 42, of Rancho Cordova, charging her with distribution of fentanyl, distribution of oxycodone, and conspiracy.

According to court documents, Markis was a registered California nurse who sold more than 20,000 prescription opioid pills and products on various darknet sites, including Silk Road 2.0, Pandora, and AlphaBay. Between 2013 and 2016, she purchased legitimate prescriptions from willing sellers. Then, she resold these pills and patches through her darknet business, “Farmacy41,” which she ran from her Rancho Cordova home.

Markis’s business operated on Silk Road 2.0 from November 2013 through May 2014. During this time, Markis sent private messages to her customers revealing that she was a licensed California medical professional. She sold more than 8,500 hydrocodone pills and more than 2,500 oxycodone pills. In combination with other sales of morphine, hydromorphone, fentanyl, and methadone, Markis earned about $230,000 in Bitcoin at the time.

Markis’s Farmacy41 business operated on Pandora from December 2013 through August 2014. During this time, she again sold more than 2,500 hydrocodone and more than 2,000 oxycodone pills. In combination with other sales of morphine, hydromorphone, methadone, and fentanyl, she completed about 393 transactions and earned about $122,000 in Bitcoin at the time.

On AlphaBay, Markis operated her Farmacy41 business from November 2015 through April 2016. There, she completed about 262 transactions for hydrocodone, oxycodone, morphine, methadone, and fentanyl. At the time, her Bitcoin earnings were worth about $74,000.

Federal agents searched Markis’s residence on January 24, 2019, and found about $1.8 million in Bitcoin held on a cold storage cryptocurrency wallet. Agents also found about $234,000 in cash. Markis was arrested on a federal complaint and made her initial appearance in court on January 25, 2019.

Andrea Michelle Jordan, aka Jill Jordan, 52, was arrested April 4, 2019, in Elk Grove. According to court documents, Jordan allegedly purchased legitimate pill and patch prescriptions from sellers in the area and then provided these to Markis, who then sold them to customers through Markis’ Farmacy41 darknet storefronts.

Assistant U.S. Attorney Amanda Beck is prosecuting the case. If convicted, Markis 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.

United States v. Jason Keith Arnold, et al. (Case No. 2:19-cr-043-MCE):

On March 7, 2019, a federal grand jury returned a five-count indictment against Jason Keith Arnold, 45, David Lee White, 49, and Alicia Marie McCoy, 30, all of Chandler, Arizona, charging them with distribution of heroin and methamphetamine, and conspiracy. According to court documents, Arnold, White, and McCoy operated the vendor accounts “TheSickness” and “SicknessVersion2” on Dream Marketplace, through which they conducted more than 3,000 transactions for heroin and methamphetamine to customers throughout the country.

Federal agents conducted several undercover purchases of heroin from SicknessVersion2 from May 2018 through October 2018. In the parcels received by agents, the purchased heroin was placed inside Haribo Gold gummy bear packages. All of the parcels were mailed from the Chandler, Arizona area. One of the undercover purchases was paid for with a postal account controlled by Arnold. Agents conducted surveillance of post offices in the Chandler, Arizona region and were able to determine that White and McCoy were mailing a large volume of parcels and were purchasing thousands of dollars in stamps. Arnold, White, and McCoy also held accounts at a cryptocurrency exchange company in which they exchanged hundreds of thousands of dollars in Bitcoins for U.S. currency.

On February 21, 2019, federal agents executed search and arrest warrants at Arnold’s residence, his tattoo shop, and a motel room occupied by White and McCoy. In the motel room, agents found heroin, and methamphetamine. Agents also found heroin at Arnold’s residence.

Assistant U.S. Attorneys Grant Rabenn and Paul Hemesath are prosecuting the case. Arnold made his initial appearance in Phoenix, Arizona on February 22, 2019. White made his initial appearance in Sacramento, on March 21, 2019. McCoy made her initial appearance in Sacramento, on March 7, 2019.

If convicted of conspiracy, Arnold, White, and McCoy face a maximum statutory penalty of life in prison, a mandatory minimum of 10 years in prison, and a $10 million fine. If convicted of distribution of a controlled substance, Arnold, White, and McCoy face 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.

These and other cases are the product of investigations by the Northern California Illicit Digital Economy (NCIDE) task force, which is composed of the Federal Bureau of Investigation, Homeland Security Investigations, the Drug Enforcement Administration, and the United States Postal Inspection Service. The Rancho Cordova Police Department and Health and Human Services, Office of Inspector General assisted in U.S. v. Markis.

These cases were brought in conjunction with the Joint Criminal Opioid Darknet Enforcement (J-CODE) Team. Established within the FBI’s Hi-Tech Organized Crime Unit, J‑CODE is an initiative announced in January 2018, targeting drug trafficking, especially fentanyl and other opioids, on the darknet. Building on the work initiated with the takedowns of Silk Road and AlphaBay, the FBI’s J-CODE team brings together agents, analysts, and professional staff with expertise in drugs, gangs, health care fraud, and more, and our federal, state, and local law enforcement partners from across the U.S. Government, to focus on disrupting the sale of drugs via the Darknet and dismantling criminal enterprises that facilitate this trafficking.

SACRAMENTO, Calif. — Atir Dadon, 34, of Sherman Oaks, pleaded guilty today to conspiring to launder money, U.S. Attorney McGregor W. Scott announced.

According to court documents, between October 2016 and November 2017, Dadon conspired to launder money with his co-defendants, Orel Gohar, 28, of San Francisco, and Bar Shani, 27, of San Francisco. Orel Gohar and co-defendant Yaniv Gohar, 35, of Berkeley, operated an illegal gambling business that placed and maintained video slot machines at businesses in Northern California, including locations in the Eastern District of California. Dadon, Shani, and Orel Gohar conspired to launder the proceeds of the illegal gambling business.

According to court documents, Dadon, Shani, and Orel Gohar agreed that Orel Gohar would give cash proceeds from the Gohars’ gambling business to Dadon and Shani, who would use the cash to pay the workers in their cosmetics business. They agreed that in exchange for the cash from Orel Gohar, Dadon and Shani would arrange for Orel to receive checks from the cosmetics business. To conceal the fact that the financial transactions involved the proceeds of illegal activity, Dadon, Shani, and Orel used code words in their conversations about the transactions, referring to the money as bottles of alcohol or other non-cash items. Dadon also put false memo lines on the checks to Orel Gohar, indicating that Gohar had providing consulting and training services, when in fact he had not done so. Between October 2016 and November 2017, Dadon laundered over $150,000 from the Gohars’ gambling business.

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

Yaniv Gohar and Orel Gohar fled the United States upon their release in December 2017 and remain at large. Anyone with information about their whereabouts should call the Federal Bureau of Investigation at (916) 746-7000. Bar Shani is detained pending trial. Co-defendant Adam Atari, 35, of Sherman Oaks, charged with conspiring to launder money with Yaniv and Orel Gohar and with witness tampering, is also detained. Co-defendant Raz Razla, 48, of Sherman Oaks, charged with making false statements to the grand jury, is out of custody. Co-defendant Eran Buhbut, 33, of Oakland, charged with operating an illegal gambling business, is also out of custody. Co-defendant May Levy, 28, of Walnut Creek, charged with operating an illegal gambling business, pleaded guilty.

Dadon is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr., on July 12, 2019. Dadon faces a statutory maximum penalty of 20 years in prison and a fine of up to $500,000, or twice the value of the monetary instrument or funds involved, whichever is greater. 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 federal grand jury returned a four-count indictment today against Oscar Rene Marrot-Garcia (Marrot), 26, of Chowchilla, and Mexican nationals Jose Monge Ponce (Ponce), 26, and Francisco Alcantar-Miranda (Alcantar), 30, charging them with conspiring to manufacture, to distribute and to possess with intent to distribute methamphetamine, cocaine, heroin, and marijuana, manufacturing methamphetamine, possessing with intent to distribute methamphetamine, cocaine, heroin, and marijuana, and maintaining drug premises, U.S. Attorney McGregor W. Scott announced.

According to court documents, Marrot rented a rural residence in Madera in December 2018 and set up a methamphetamine lab there. Joined by Ponce and Alcantar, the three assisted in manufacturing methamphetamine and storing large quantities of other drugs at the unoccupied Madera residence. At the end of January law enforcement executed a search warrant at the residence and found all three men there. They also found 22.4 pounds of methamphetamine in solution, 14 pounds of finished methamphetamine, 1 pound of cocaine, 2 pounds of heroin, and 25 pounds of marijuana. A handgun with a fully loaded magazine was also found.

This case is the product of an investigation by the Madera County Narcotic Enforcement Team (MADNET) and the High Intensity Drug Trafficking Area (HIDTA) team, which consists of agents from Homeland Security Investigations, California Department of Justice, California Highway Patrol, Fresno, the Sheriffs’ Offices of Tulare, and King Counties, and the Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

If convicted of the drug conspiracy, manufacturing, and possession with the intent to distribute charges, the defendants face 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. As to maintaining drug premises, the defendants face a maximum statutory penalty of 20 years in prison and a $500,000 fine. The defendants may also be responsible to pay any cleanup costs associated with the disposal of the hazardous materials. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned a nine-count indictment today against Damian Deleal, 30, of Carmichael, charging him with conspiracy to commit offenses against the United States, armed robbery of a U.S. Mail carrier, possession of a stolen Postal Service key, bank fraud, aggravated identity theft, and possession of stolen U.S. mail, U.S. Attorney McGregor W. Scott  announced.

According to court documents, in March 2018, Deleal conspired with other individuals to rob a mail carrier of a U.S. Postal Service key that was capable of opening numerous residential mailboxes in Sacramento. Deleal conspired to obtain the key so he and his coconspirators – including Jayce Powell, Brandon Moses, and Loren Patrick – could commit bank fraud and identity theft using bankcards, checks, and other financial instruments stolen from the mail.

On March 9, 2018, in South Sacramento, an unnamed co-conspirator robbed a mail carrier at gunpoint and took a Postal Service key. Although the gun resembled a real firearm, investigators later determined it was a BB gun that Deleal supplied as part of the conspiracy. During the following week, Deleal, Powell, Moses, and Patrick used the key to steal mailed bankcards and checks. They then posed as the victims and attempted to use their bankcards and checks to purchase goods and obtain cash.

Deleal and Powell further conspired to fraudulently claim reward money offered for information relating to the robbery and the stolen Postal Service key. In executing this plan, they planted the stolen key on Moses while he was sleeping in his car and called the U.S. Postal Service to report Moses’ location and inquire about the reward. After receiving this tip, investigators worked quickly to make arrests and learned that Deleal orchestrated the conspiracy and related crimes.

This case is the product of an investigation by the U.S. Postal Inspection Service, the Sacramento County Sheriff’s Department, and the Sacramento Police Department. Assistant U.S. Attorney Michelle Rodriguez and Special Assistant U.S. Attorney Robert J. Artuz are prosecuting the case.

Deleal is currently in custody on unrelated charges. Powell, Moses, and Patrick have already pleaded guilty to federal charges in the following related cases in this district: U.S. v. Patrick, 2:18-cr-079-MCE; U.S. v. Powell, 2:18-cr-083-MCE; and U.S. v. Moses, 2:18-cr-090‑MCE.

If convicted of bank fraud, Deleal faces a maximum statutory penalty of 30 years in prison and a $1 million fine. If convicted of armed robbery, he faces a maximum statutory penalty of 25 years in prison and a $1 million fine. If convicted of aggravated identity theft, he faces a mandatory sentence of two years in prison consecutive to any other sentence imposed. The maximum sentence for conspiracy is 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. — A federal grand jury returned a one-count indictment today against Jose Reyes-Delgado, 57, a Mexican national residing in Fresno, charging him with failure to register or update his registration as a sex offender, U.S. Attorney McGregor W. Scott announced.

According to court documents, from April 2018 until March 2019, Reyes-Delgado was present in the State of California but failed to register as a sex offender as required by law. Reyes-Delgado was previously convicted in 1989 in California for lewd conduct with a child under 16, at which time he acquired his registration requirement.

This case is the product of an investigation by the U.S. Marshals Service, and ICE Enforcement and Removal Operations. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.

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

SACRAMENTO, Calif. — Jeffrey S. Grady, 35, of Stockton, was sentenced today by U.S. District Judge Troy L. Nunley to two and a half years in prison and ordered to pay more than $25,000 in restitution for conspiracy to submit false claims to the IRS and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.

“The harm caused by Mr. Grady and his co-defendants goes beyond simply cheating the government,” said Kareem Carter, IRS Criminal Investigation Special Agent in Charge. “Stealing identities and filing false tax returns is a serious crime that has a devastating impact on the victims. Identity theft is a pervasive crime and stopping it remains a top priority for us.”

According to court documents, Grady and his co-conspirators submitted tax returns to the IRS that falsely claimed that the persons named on the returns were entitled to tax refunds. Grady obtained the names, social security numbers, and other personal identifying information of various individuals and used that information, often without the knowledge of those people, to submit the tax returns in their names. Altogether, Grady took part in submitting at least 150 false tax returns, requesting approximately $94,140 in tax refunds. The IRS paid more than $25,000 in tax refunds based on those fraudulent tax returns. Grady was one of four defendants charged in the same conspiracy and the last to be sentenced.

Christopher Grady, of Stockton, was sentenced on July 13, 2017, to approximately 38 months of time served in custody and ordered to pay more than $250,000 in restitution.

Jacob Cook, of Stockton, was sentenced on September 7, 2017, to serve 30 months in prison and ordered to pay more than $69,000 in restitution.

Tosh Babu, of Stockton, was sentenced on September 21, 2017, to serve 30 months in prison and ordered to pay more than $94,000 in restitution.

This case was the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.

FRESNO, Calif. — Terrence Goldberg, 35, of Brook Park, Minnesota, was sentenced today to 16 years in prison, to be followed by 15 years of supervised release for two counts of receipt and distribution of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, investigators in Rochester, New York detected Goldberg sharing child pornography files in 2016 from a location at which a children’s camp operated in Madera County, California. When agents located Goldberg in North Fork, California, on July 11, 2016, he was actively downloading child pornography files outside of a church. Goldberg admitted that he had been downloading child pornography and consented to a search of electronic devices that he had been using. He then relocated to Minnesota, and investigators with FBI offices in Minnesota and Wisconsin opened their own investigations after they detected Goldberg sharing child pornography files from October 2016 through May 2017. As part of those investigations, a search of Goldberg’s residence was conducted on May 26, 2017, and he was arrested. A magistrate judge in Minnesota ordered Goldberg detained and returned to California where an indictment had been filed on June 1, 2017.

A restitution hearing has been set before U.S. District Judge Dale A. Drozd on June 24.

This case is the product of an investigation by the FBI offices in Rochester, New York; Minneapolis, Minnesota; La Crosse, Wisconsin; and Fresno, California with assistance from the Madera County Sheriff’s Office. Assistant U.S. Attorney David Gappa prosecuted the case.

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

The Department of Justice and the U.S. Department of the Interior (DOI) today filed civil actions, in both federal and state court, against the California State Water Resources Control Board for failing to comply with the California Environmental Quality Act (CEQA).

On Dec. 12, 2018, the California State Water Resources Control Board (the Board) approved and adopted amendments to the Water Quality Control Plan for the San Francisco Bay/Sacramento–San Joaquin Delta Estuary (amended plan) and the related Substitute Environmental Document (SED).  According to the complaint, the Amended Plan fails to comply with CEQA and, once implemented, will impair DOI’s ability to operate the New Melones Dam consistent with Congressional directives for the project. 

“The environmental analysis by the California State Water Resources Control Board hid the true impacts of their plan and could put substantial operational constraints on the Department of the Interior’s ability to effectively operate the New Melones Dam, which plays a critical role in flood control, irrigation, and power generation in the Sacramento region,” said Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Environment and Natural Resources Division. “The Department of Justice will continue to advocate on behalf of our federal partners, especially when it comes to the proper application of federal and state environmental laws.”

“As stated in our letter to the Board on July 27, 2018, today’s lawsuit affirms the Bureau of Reclamation’s continued opposition to the State Water Board plan. The plan poses an unacceptable risk to Reclamation’s water storage and power generation capabilities at the New Melones Project in California and to local recreational opportunities,” said Bureau of Reclamation Commissioner Brenda Burman. “We pledge our commitment to environmentally and economically sound water management for California’s farms, families, business, and natural resources, and the American public as a whole.”

CEQA is a California statute which requires state and local agencies to identify the significant environmental impacts of their actions and to avoid or mitigate those impacts, if feasible. The lawsuits filed today allege that in approving the amended plan and final SED, the Board failed to comply with the requirements of CEQA in a number of ways:

• The Board failed to provide an accurate, stable and finite project description, because the Board analyzed a project materially different from the project described in the project description;
• The Board improperly masked potential environmental impacts of the amended plan by including carryover storage targets and other reservoir controls – mitigation measures – in its impacts analysis and by not analyzing the impacts of the amended plan on the environment without reservoir controls; and
• The Board failed to adequately analyze the impacts of the amended plan, including with respect to water temperature and related water quality conditions, and water supply.

As alleged in the lawsuits, the United States will be directly and substantially impacted by the Board’s actions, which impacts include, but are not limited to, operational constraints on the New Melones Project, loss of available surface water supplies for New Melones Project purposes, including Central Valley Project (CVP) water service contracts, and involuntary dedication of federal reservoir space for Board purposes.

The New Melones Dam is a federally owned Reclamation facility and a component of the federal CVP.  The Dam stores water under permits issued by the State of California, and delivers water from storage to irrigation and water districts under contracts entered into under federal reclamation law.  The lawsuits further allege that the new flow objectives will significantly reduce the amount of water available in New Melones reservoir for meeting congressionally authorized purposes of the New Melones Project, including irrigation, municipal and industrial purposes, power generation, and recreational opportunities at New Melones.  The reduced water available for New Melones Project purposes would also impair Reclamation’s delivery of water under contracts it presently holds with irrigation and water districts.

The United States is represented in this action by Assistant Attorney General Clark and United States Attorney McGregor W. Scott; with lead counsel Stephen M. Macfarlane, Romney Philpott, Erika Norman of the Natural Resources Section; and Kelli L. Taylor of the U.S. Attorney’s Office for the Eastern District of California.