Eastern District of California

SACRAMENTO, Calif. — George B. Larsen, 56, formerly of San Rafael, was sentenced to 10 years and one month in prison and ordered to pay $1,759,100 in restitution for his role in a fraudulent mortgage elimination scheme, U.S. Attorney McGregor W. Scott announced.

On December 6, 2017, Larsen was convicted following trial on one count of conspiracy and four counts of bank fraud.

According to court documents, between April 22, 2010, and November 18, 2011, Larsen was a member of a conspiracy that ran a mortgage elimination program purporting to help distressed homeowners avoid foreclosure. The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.

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

Larsen ran a branch of the mortgage elimination program, recruiting homeowners into the scheme, marshalling the necessary recorded documents, and guiding the sale of the homes. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Larsen would have a sham deed of trust created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.

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

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

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

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

One co-defendant, Larry Todt, formerly of Malibu, was convicted at trial along with Larsen. Three other co-defendants have previously entered guilty pleas: Remus A. Kirkpatrick, formerly of Oceanside, Michael Romano, of Benicia, and Laura Pezzi, of Roseville. Tisha Trites and Todd Smith, both of San Diego, pleaded guilty in related cases. All are awaiting sentencing.

Co-defendants John Michael DiChiara, of Penn Valley, and James Castle, of Santa Rosa, are awaiting trial. The charges against DiChiara and Castle are only allegations: both defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Jerry Lyle Andrews Jr., 35, of Vallejo, was sentenced today by U.S. District Judge Morrison C. England Jr., to five years in prison for being a felon in possession a firearm, U.S. Attorney McGregor W. Scott announced.

According to court documents, on July 26, 2017, law enforcement officers executed a search warrant at Andrews’ home in Vallejo and at a hotel in Fairfield where Andrews was staying. When officers arrived at the hotel parking lot, they confronted Andrews, who discarded a .40‑caliber semi-automatic handgun under a car before he was arrested. The gun was loaded with 12 rounds of ammunition, including seven rounds of hollow point ammunition. Andrews cannot lawfully possess firearms because he has previously been convicted of felony offenses, including a January 2016 conviction in Solano County for assault with a firearm on a police officer.

This case was the product of an investigation by the Vacaville Police Department, the Fairfield Police Department, and the Federal Bureau of Investigation’s Solano County Violent Crimes Task Force.

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

SACRAMENTO, Calif. — Marc C. Turner, 44, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to 20 years in prison for receipt of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, law enforcement agents searched Turner’s apartment in September 2016. Review of Turner’s computer located 90 videos and 171 still images depicting the sexual abuse and exploitation of minors. At the time of the search, Turner was a registered sex offender based on a prior conviction in federal court in Sacramento for distributing child pornography.

This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Matt Morris 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. — Brittany Maunakea, 29, of Manteca, was sentenced today by U.S. District Judge Morrison C. England Jr. to two and a half years in prison for conspiracy to commit mail fraud for her role in a scheme to defraud the State of California by filing false unemployment insurance claims, U.S. Attorney McGregor W. Scott announced. Maunakea was also ordered to pay $139,071 in restitution.

According to court documents, beginning in February 2015, Maunakea entered a scheme to defraud the State of California by filing false unemployment insurance claims with the California Employment Development Department (EDD), using the stolen identities of over 250 California workers. In total, the conspirators filed at least 269 false claims seeking over $2.5 million in fraudulent benefits. EDD’s actual overpayment was $898,899. Maunakea participated in the scheme by receiving and facilitating EDD documents at her home and using debit cards issued in the names of identity-theft victims to withdraw the fraudulently obtained benefits.

“Ms. Maunakea’s crime victimized citizens whose stolen identities were used in furtherance of her personal enrichment. The Office of Inspector General will continue to make it a priority to work with our law enforcement and state workforce agency partners to protect the integrity of the Unemployment Insurance program and to seek justice on behalf of the victims of these identity theft schemes,” said Abel Salinas, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.

This case is the product of an investigation by the U.S. Department of Labor Office of Inspector General, the Federal Bureau of Investigation and the California Employment Development Department, Investigations Division. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.

Maunakea is the first of five defendants charged in the scheme to be sentenced. Co‑defendant Sergio Reyna has also pleaded guilty to conspiracy to commit mail fraud and is set to be sentenced on September 6, 2018. The charges against co-defendants Pamela Emanuel, Gregory Lee, and Russell White III remain pending. The charges against Emanuel, Lee and White are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Omar Ameen, 45, an Iraqi national, wanted on a murder charge in Iraq, appeared before a federal magistrate judge in Sacramento today in connection with proceedings to extradite him to face trial in Iraq. Ameen settled in Sacramento as a purported refugee and attempted to gain legal status in the United States.

The arrest was announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney McGregor W. Scott for the Eastern District of California, Assistant Director Michael McGarrity of the FBI’s Counterterrorism Division, and Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office.

An arrest warrant charging Ameen with the 2014 murder of an Iraqi police officer was issued on May 16, by a judge of the Baghdad Federal Al-Karkh Inquiry Court.

In accordance with its treaty obligations with Iraq, the United States filed a complaint in Sacramento seeking a warrant for Ameen’s arrest based on the extradition request. U.S. Magistrate Judge Edmund F. Brennan issued the warrant on Tuesday, and Ameen was arrested by the FBI Joint Terrorism Task Force in Sacramento today. At his initial appearance today, a new court date was set for August 20 at 2:00 p.m. before Judge Brennan.

The Iraqi arrest warrant and extradition request allege that after the town of Rawah, Iraq fell to the Islamic State of Iraq and al-Sham (ISIS) on June 21, 2014, Ameen entered the town with a caravan of ISIS vehicles and drove to the house of the victim, who had served as an officer in the Rawah Police Department. On the evening of June 22, 2014, after the caravan arrived at the victim’s house, Ameen and other members of the convoy allegedly opened fire on the victim. Ameen then allegedly fired his weapon at the victim while the victim was on the ground, killing him.

Ameen, originally of Rawah, in the Anbar province of Iraq, fled Iraq following the alleged murder, and later settled in Sacramento as a purported refugee. It is alleged that Ameen’s family supported and assisted the installation of al Qaeda in Iraq (AQI) in Rawah, and that Ameen was a member of AQI and ISIS. It is also alleged that he participated in various activities in support of those terrorist organizations, including helping to plant improvised explosive devices, and committing the murder that is the subject of the extradition request. Ameen concealed his membership in those terrorist groups when he applied for refugee status, and later when he applied for a green card in the United States.

Today’s arrest and the subsequent extradition are the product of a coordinated effort by the U.S. Department of Justice, the U.S. Department of State, the Federal Bureau of Investigation—in particular the FBI Sacramento Field Office, which provided considerable resources to further this investigation and ensure the safety of the American people throughout — and ICE-Homeland Security Investigations. The details contained in the charging document are allegations and have not been proven in court.

Omar Ameen, 45, an Iraqi national, wanted on a murder charge in Iraq, appeared before a federal magistrate judge in Sacramento, California today in connection with proceedings to extradite him to face trial in Iraq.  Ameen settled in Sacramento as a purported refugee and attempted to gain legal status in the United States. 

The arrest was announced by Assistant Attorney General for National Security John C. Demers, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney McGregor W. Scott for the Eastern District of California, Assistant Director Michael McGarrity of the FBI’s Counterterrorism Division, and Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office. 

An arrest warrant charging Ameen with the 2014 murder of an Iraqi police officer was issued on May 16, by a judge of the Baghdad Federal Al-Karkh Inquiry Court.  In accordance with its treaty obligations with Iraq, the United States filed a complaint in Sacramento seeking a warrant for Ameen’s arrest based on the extradition request.  U.S. Magistrate Judge Edmund F. Brennan issued the warrant on Tuesday, and Ameen was arrested by the FBI Joint Terrorism Task Force in Sacramento today. 

The Iraqi arrest warrant and extradition request allege that after the town of Rawah, Iraq fell to the Islamic State of Iraq and al-Sham (ISIS) on June 21, 2014, Ameen entered the town with a caravan of ISIS vehicles and drove to the house of the victim, who had served as an officer in the Rawah Police Department.  On the evening of June 22, 2014, after the caravan arrived at the victim’s house, Ameen and other members of the convoy allegedly opened fire on the victim.   Ameen then allegedly fired his weapon at the victim while the victim was on the ground, killing him. 

Ameen, originally of Rawah, in the Anbar province of Iraq, fled Iraq following the alleged murder, and later settled in Sacramento as a purported refugee.  It is alleged that Ameen’s family supported and assisted the installation of al-Qaeda in Iraq (AQI) in Rawah, and that Ameen was a member of AQI and ISIS.  It is also alleged that he participated in various activities in support of those terrorist organizations, including helping to plant improvised explosive devices, and committing the murder that is the subject of the extradition request.  Ameen concealed his membership in those terrorist groups when he applied for refugee status, and later when he applied for a green card in the United States. 

The details contained in the charging document are allegations and have not been proven in court.  

Today’s arrest and efforts to initiate the extradition process are the product of a coordinated effort by the U.S. Department of Justice — in particular the Criminal Division's Office of International Affairs, which played a significant role — the U.S. Department of State, the FBI — in particular the FBI Sacramento Field Office which provided considerable resources to further this investigation and ensure the safety of the American people throughout it — and ICE-Homeland Security Investigations.

FRESNO, Calif. — On Monday, Devone Johnson, 32, and Anthony Thomas, 26, pleaded guilty to unlawfully possessing firearms, U.S. Attorney McGregor W. Scott announced.

According to court documents, on October 9, 2016, Johnson and Thomas possessed an Uzi Model A, 9 mm rifle. Thomas was prohibited from possessing firearms because of a previous felony conviction. Johnson was prohibited from possessing firearms because of a misdemeanor domestic violence conviction.

Johnson and Thomas were arrested on November 3, 2016, along with 18 other defendants following a year-long multi-agency investigation that targeted criminal street gangs in Fresno. Other defendants also have pleaded guilty to various firearms and drug offenses, including:

• Garry Sampson, 40, pleaded guilty on August 1, 2018, to unlawfully possessing a firearm. He is scheduled to be sentenced on October 22, 2018.
• Raymond Jones, 61, pleaded guilty on August 6, 2018, to conspiracy to distribute and possess with intent to distribute cocaine base. He is scheduled to be sentenced on November 5, 2018.
• Danny Valenzuela, 51, pleaded guilty on July 30, 2018, to conspiracy to distribute and possess with intent to distribute cocaine base. He is scheduled to be sentenced on November 5, 2018.
• Stephen Hill, 28, pleaded guilty on September 25, 2017, to conspiracy to distribute and possess with intent to distribute cocaine. On December 18, 2017, Hill was sentenced to two years and eight months in prison.
• Rashad Halford, 31, pleaded guilty on September 25, 2017, to conspiracy to distribute and possess with intent to distribute cocaine. On March 12, 2018, Halford was sentenced to two years and two months in prison.

These cases are the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the California Department of Justice’s Bureau of Investigation Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the Fresno Police Department, the California Department of Corrections and Rehabilitation, the Fresno County District Attorney’s Office, and the California Highway Patrol Special Operations Unit (SOU). The Fresno County Sheriff’s Office, the Clovis Police Department, Fresno County Probation, and the California Highway Patrol assisted in the investigation. Assistant U.S. Attorneys Kimberly A. Sanchez and Christopher D. Baker are prosecuting the cases.

Johnson and Thomas are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on October 29, 2018, and November 5, 2018, respectively. They face a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Michael Galloway, 63, of Bakersfield, to 21 months in prison for tax evasion, U.S. Attorney McGregor W. Scott announced. Galloway was ordered to surrender to serve his sentence beginning on November 14, 2018.

On March 21, 2018, a jury in Fresno returned a guilty verdict today, convicting on four counts of tax evasion. Galloway owns and operates the website, Catholic Online. According to court documents, Galloway generated revenue by selling advertising and hosting to faith-based businesses.

“No matter what the source of income, all income is taxable,” said Tara Sullivan, Special Agent in Charge, IRS Criminal Investigation. “Mr. Galloway received income from many sources, however, he failed to disclose his true income to the IRS. This sentence should send a clear message: tax evasion is a violation of federal law and can have severe consequences that can result in jail time.”

For tax years 2003 through 2006, Galloway improperly deducted personal expenses as business expenses, including his homeowner’s association fees for his personal residence, car payments and insurance, utilities and cable service for his personal residence, tile work, and personal legal fees.

For the four charged years, Galloway reported an income of $13,241 (2003); $28,846 (2004); $-60,438 (2005); and $23,053 (2006). During this time the defendant owned a 4,600 square-foot residence on a golf course in Bakersfield that he had purchased for $850,000. He made mortgage payments those years totaling $81,943 (2003); $78,694 (2004); $79,372 (2005); and $80,411 (2006). For the four years in question, these figures amounted to a claim by the defendant that he earned only $4,702 and yet was able to make $320,420 in mortgage payments.

Cumulatively, he underreported his and his spouse’s taxable income during those years by at least $671,755, resulting in an additional tax due and owing of over $102,000. The jury also found that he falsely claimed to IRS agents during a 2010 interview that he made his mortgage payments from cash that he had saved over 40 years. The jury found that this statement was an attempt to evade income tax.

This case was the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorneys Megan A. S. Richards and Michael Tierney prosecuted the case.

FRESNO, Calif. — Sandra Haar, 57, of Merced, pleaded guilty today to health care fraud and conspiracy to receive kickbacks, U.S. Attorney McGregor W. Scott announced.

Haar was the founder and chief executive officer of Horisons Unlimited, a nonprofit public benefit corporation that provided health and dental services in Merced and surrounding communities. According to court documents, between January 1, 2014, and March 2017, Haar orchestrated a scheme to bill Medicare and Medi-Cal for services she knew were not reimbursable, and she profited by over $3.7 million from her fraud. For example, Haar billed Medi‑Cal for health and dental services that were not rendered and for unnecessary health care services. She also billed Medi-Cal for office visits with purportedly licensed doctors when the patients instead were dispensed Suboxone, an opioid medication, in the parking lots of McDonald’s and Rite Aid in baggies.

According to the plea agreement, Haar also received thousands of dollars in kickbacks in cash from an account executive at a laboratory in exchange for using it for Horisons patients’ laboratory testing.

This case is the product of an investigation by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services Office of Inspector General (HHS OIG), the California Department of Health Care Services, and the California Bureau of Medi-Cal Fraud & Elder Abuse. Assistant U.S. Attorneys Lee S. Bickley and Michael Tierney are prosecuting the case.

Haar is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on January 28, 2019. Haar faces a maximum statutory penalty of 20 years in prison and a fine of twice the value of Haar’s gain. 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. — Starsheka Mixon, 35, of Pinole, was sentenced today by U.S. District Judge Morrison C. England Jr. to three years and one month in prison for a stolen identity tax refund fraud scheme, U.S. Attorney McGregor W. Scott announced.

“The defendants used taxpayer information to enrich themselves by submitting false tax returns to the IRS,” said Tara Sullivan, Special Agent in Charge, IRS Criminal Investigation. “This scheme went on for three years and victimized innocent taxpayers and the government.  Identity theft can have a negative financial impact on taxpayers and can take years to repair.  Taxpayers must be careful who they share their personally identifiable information with when choosing a tax return preparer.”

According to court documents, between January 2011 and June 2013, Mixon and co‑defendant Denna Chambers, 35, of Fairfield, conspired together and with others to fraudulently obtain tax refunds by filing false tax returns in the names of other people with the Internal Revenue Service. The tax returns included false statements about the taxpayers’ income, dependents, and occupations in order to obtain refunds and tax credits to which the taxpayers were not entitled, including the Earned Income Credit and the Additional Child Tax Credit. Some of the fraudulent tax returns used the name and personal information of individuals without their knowledge or consent.

The fraudulently obtained refunds were typically placed on prepaid debit cards controlled by Chambers, Mixon, or their associates. In their respective plea agreements in February 2018, Chambers and Mixon both admitted that in all, approximately 174 false federal income tax returns were filed seeking over $880,000 in tax refunds, of which approximately $477,348 was paid out by the IRS.

Judge England also ordered Mixon to serve two years of supervised release. She was ordered to self-surrender on October 18, 2018, to begin serving her sentence. Chambers is scheduled to be sentenced on September 13, 2018.

This case is the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.

For 2018, the IRS, the states, and the private-sector tax industry are working together to identify and apply safeguards to better protect taxpayers and fight identity theft. You can find identity theft protection for prevention, detection, and victim assistance at: www.irs.gov/identity‑theft-fraud-scams.

FRESNO, Calif. — A federal grand jury returned an indictment today against Kalif Eban Bess, 43, of Fresno, charging him with being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.

According to court documents, on May 5, 2018, a .357 revolver with six live rounds was discovered in Bess’s backpack. Bess was prohibited from possessing a firearm based on prior felony convictions.

This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno Police Department, and the Fresno County District Attorney’s Office. Assistant U.S. Attorney Mark J. McKeon is prosecuting the case.

If convicted, Bess 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 applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

SACRAMENTO, Calif. — Gary Loch, 29, of Stockton, and Eugene, Oregon, was sentenced today by U.S. District Judge Kimberly J. Mueller to five years in prison for conspiring to traffic firearms without a license, possessing an unregistered automatic weapon, and possessing a firearm with an obliterated serial number, U.S. Attorney McGregor W. Scott announced.

According to court documents, between January and June 2016, Loch was one of several Stockton-based conspirators who sold about 47 guns to an undercover agent. Loch personally owned and sold three of these weapons, including a machinegun with a partially obliterated serial number. Several other firearms were automatic, carried extended magazines, or had obliterated serial numbers. Agents saw Loch removing several of these serial numbers himself. In total, Loch was present as 31 firearms changed hands at 10 transactions in Stockton and Las Vegas, Nevada. During several of these meetings, the undercover agent said that he could not legally purchase weapons and that he would introduce the guns to the black market. Loch and others completed the purchases nonetheless.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Amanda Beck and Richard Bender prosecuted the case.

Loch has been in custody since October 18, 2017. Nearly all of his co-defendants have been sentenced for gun-related crimes: Jason Prom received 12 years in prison. Ronnie Dethvongsa received four years and nine months in prison. Kenny Prach received three years and six months in prison. Ariana Diaz received two and a half years in prison. Sean Chaichanhda and Hilberto Arevalos received 18 months each. Charges are still pending against co-defendant Adam Nhem, who is scheduled to appear in court on September 17, 2018. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

SACRAMENTO, Calif. — Hector Jonathan Hernandez, 26, of Sacramento, was sentenced today by U.S. District Judge Kimberly J. Mueller to eight years and one month in prison for distributing methamphetamine, U.S. Attorney McGregor W. Scott announced.

According to court documents, in May 2016, in a series of recorded calls, Hernandez negotiated with a DEA confidential source about selling methamphetamine. On May 25, 2016, Hernandez met with the source at a Lowe’s parking lot in Elk Grove and sold him one pound of methamphetamine for $3,500. The substance was tested later at laboratory, and it tested at 100 percent purity for methamphetamine.

This case was the product of an investigation by the Drug Enforcement Administration. 

FRESNO, Calif. — U.S. District Judge Lawrence J. O’Neill sentenced Everitt Aaron Jameson, 27, of Modesto, today to 15 years in prison for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.

Assistant Attorney General for National Security John C. Demers and U.S. Attorney McGregor W. Scott made the announcement.

“There is no place in the United States for terrorists and terrorist sympathizers who threaten innocent people, and the National Security Division will relentlessly seek to identify them and bring them to justice,” said Assistant Attorney General Demers. “Jameson put his fellow Americans at risk by supporting ISIS and planning an attack on behalf of the terrorist organization. This is unacceptable, and I am grateful for the hardworking agents and prosecutors who are responsible for this successful result.”

First Assistant U.S. Attorney Phillip A. Talbert stated: “Protecting our communities from terrorist threats is the Department of Justice’s highest priority. With the assistance of our investigative partners, we will continue to work to prevent such attacks and to vigorously prosecute those who seek to provide material support to terrorist organizations. We are grateful for the hard work of the FBI and the DOJ’s National Security Counterterrorism Division for their teamwork in bringing this case to a just conclusion.”

“This case demonstrates the FBI’s commitment to identifying and disrupting plots to harm the American public. With assistance from our state and local partners, we completed a thorough investigation while ensuring that Jameson would not be able to carry out his plans,” said Special Agent in Charge Ragan, “The public also plays an active role in ensuring the safety of our communities. We encourage members of the public to always say something if they see or hear anything that raises concerns about a possible attack.”

Jameson pleaded guilty on June 4, 2018. According to the plea agreement, between September 2017 and December 20, 2017, Jameson voiced support for ISIS knowing that the organization was engaging in terrorist activity and terrorism. Among other things, he had several online interactions with a confidential source, and during those interactions, he stated that he was committed wholeheartedly to “the cause.” Jameson also expressed support online for the October 31, 2017, terrorist attack in New York City, as well as other terrorist attacks. In subsequent communications with an undercover agent, Jameson stated that he was ready to do whatever they needed done here and noted that his time in the military had trained him for combat and war. According to court documents, Jameson joined the Marine Corps and received basic training, including earning a sharpshooter rifle qualification, but was ultimately discharged for failing to disclose his asthma history.

Later, Jameson met with another undercover agent whom he believed to be associated with, and working for, the senior leadership of ISIS and offered to carry out violent acts and provide financial support for the terrorist organization.

According to court documents, on December 16, 2017, Jameson discussed what he could offer to the cause. Among other things, Jameson stated that he was well versed in the Anarchist Cookbook, and explained his desire to use explosives in an attack. He also noted that he could get PVC pipe, nails, and powder for explosive devices, and he asked for remote timing devices from that person. Jameson identified Pier 39 as a target location of an attack, noting that it was crowded and that explosives could be used to funnel people into an area so that he could inflict casualties by shooting people trying to escape. Jameson also offered to provide money to the cause.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Dawrence W. Rice Jr. and Christopher D. Baker prosecuted the case with Trial Attorney Brenda Sue Thornton of the National Security Division’s Counterterrorism Section.

SACRAMENTO, Calif. — Carlos Gutierrez Gonzalez, 23, of Michoacán, Mexico, was sentenced today by U.S. District Judge Kimberly J. Mueller to four years and two months in prison and ordered to pay $10,000 in restitution to the U.S. Forest Service for growing marijuana on the National Forest and for depredation of Public Lands and Resources, U.S. Attorney McGregor W. Scott announced.

According to court documents, Gutierrez Gonzalez along with several other men, were growing marijuana in the Shasta-Trinity National Forest to the west of Weaverville, near Limedyke Mountain at an elevation of approximately 2,500 feet. On August 7, 2017, law enforcement officers executed a search of the grow. When they arrested Gutierrez Gonzalez, a loaded .45-caliber handgun was found near him and a bullet for that gun was in his pocket. Over 2,500 marijuana plants were found and eradicated. A camp site was found where the men had camped.

The environmental damage to the grow site was investigated and documented by Integral Ecology Research Center, a non-profit organization dedicated to the research and conservation of wildlife and their ecosystems which has investigated over 100 of such public land marijuana grow sites.

The report of the investigation was filed with the court, and it found that at this grow site they found a half-full 33.8 oz. bottle of carbofuran hidden among the fertilizer bags and a bag containing an estimated 20 pounds of powder carbofuran. A food bottle found at the site had been reused and contained a mixture of refried beans and carbofuran (suspected bait for animals). Four cisterns were discovered with stopped-up mountain streams for use in the marijuana grow’s irrigation system with an estimated 4,500 feet of plastic water lines and over 1,500 pounds of soluble fertilizer. The report estimates that the operation used over 15,000 gallons of water per day. Open campsite latrines were found in proximity to waterways which would cause watershed contamination from fecal matter after the next substantial rain. About 1,000 pounds of trash and 500 pounds of plastic pipe were hauled out of the site. Tests on samples of the marijuana plants determined that carbofuran was present in the plant material.

This case was the product of an investigation by the U.S. Forest Service with the assistance of agents from the U.S. Bureau of Land Management, the California Department of Fish and Wildlife, the North State Marijuana Investigation Team and deputies of the Trinity County Sheriff’s Office. Assistant U.S. Attorney Richard Bender prosecuted the case.

Co-defendant Sebastian Martinez Arreola, who had been in the grow site approximately 11 days at the time of his arrest, pleaded guilty to marijuana cultivation charges and was sentenced to 20 months in prison on February 28, 2018. Charges are pending against Armando Mayorga Garcia. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Everitt Aaron Jameson, 27, of Modesto, California, was sentenced today to 15 years in prison, and a life term of supervised release, for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.

Assistant Attorney General for National Security John C. Demers, U.S. Attorney McGregor W. Scott for the Eastern District of California, and Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office made the announcement.  The sentence was issued by U.S. District Judge Lawrence J. O’Neill.

“There is no place in the United States for terrorists and terrorist sympathizers who threaten innocent people, and the National Security Division will relentlessly seek to identify them and bring them to justice,” said Assistant Attorney General Demers.  “Jameson put his fellow Americans at risk by supporting ISIS and planning an attack on behalf of the terrorist organization. This is unacceptable, and I am grateful for the hardworking agents and prosecutors who are responsible for this successful result.”

“Protecting our communities from terrorist threats is the Department of Justice’s highest priority,” said First Assistant U.S. Attorney Phillip A. Talbert.  “With the assistance of our investigative partners, we will continue to work to prevent such attacks and to vigorously prosecute those who seek to provide material support to terrorist organizations.  We are grateful for the hard work of the FBI and the DOJ’s National Security Counterterrorism Division for their teamwork in bringing this case to a just conclusion.”

“This case demonstrates the FBI’s commitment to identifying and disrupting plots to harm the American public. With assistance from our state and local partners, we completed a thorough investigation while ensuring that Jameson would not be able to carry out his plans,” said Special Agent in Charge Ragan.  “The public also plays an active role in ensuring the safety of our communities. We encourage members of the public to always say something if they see or hear anything that raises concerns about a possible attack.”

Jameson pleaded guilty on June 4.  According to the plea agreement, between September 2017 and Dec. 20, 2017, Jameson voiced support for ISIS knowing that the organization was engaging in terrorist activity and terrorism.  Among other things, he had several online interactions with a confidential source, and during those interactions, he stated that he was committed wholeheartedly to “the cause.”  Jameson also expressed support online for the Oct. 31, 2017, terrorist attack in New York City, as well as other terrorist attacks. 

In subsequent communications with an undercover agent, Jameson stated that he was ready to do whatever they needed done here and noted that his time in the military had trained him for combat and war.  According to court documents, Jameson joined the Marine Corps and received basic training, including earning a sharpshooter rifle qualification, but was ultimately discharged for failing to disclose his asthma history.

Later, Jameson met with another undercover agent whom he believed to be associated with, and working for, the senior leadership of ISIS, and offered to carry out violent acts and provide financial support for the terrorist organization.

According to court documents, on Dec. 16, 2017, Jameson discussed what he could offer to the cause.  Among other things, Jameson stated that he was well versed in the Anarchist Cookbook, and explained his desire to use explosives in an attack.  He also noted that he could get PVC pipe, nails and powder for explosive devices, and asked for remote timing devices from that person.  Jameson identified Pier 39 as a target location of an attack, noting that it was crowded and explosives could be used to funnel people into an area so that he could inflict casualties by shooting people trying to escape.  Jameson also offered to provide money to the cause.

This case was the product of an investigation by the FBI.  Assistant U.S. Attorneys Dawrence W. Rice Jr. and Christopher D. Baker of the Eastern District of California prosecuted the case with Trial Attorney Brenda Sue Thornton of the National Security Division’s Counterterrorism Section.

SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Elmer Daniel Iglesias Lucatero, 23, of Yuba City, charging him with distribution of methamphetamine and heroin, and possession with intent to distribute fentanyl and heroin, U.S. Attorney McGregor W. Scott announced.

According to court documents, on February 12, 2018, Lucatero sold an undercover source about 430 grams of pure methamphetamine. Later, on February 26, 2018, Lucatero sold this source about 500 pills advertised as oxycodone. Laboratory analysis later showed that heroin was their active ingredient and, thus, that the pills were counterfeit. Finally, on April 5, 2018, agents executed a search warrant on Lucatero’s Yuba City apartment. There, they found about 13,000 more pills pressed to look like legitimate oxycodone. In reality, the pills contained fentanyl, a powerful and potentially lethal opioid pain reliever. The agents also found about 3,000 counterfeit oxycodone pills in a car that Lucatero had been driving. Laboratory analysis showed that these pills contained heroin.

This case is the product of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Amanda Beck is prosecuting the case.

If convicted, Lucatero faces a maximum statutory penalty of life in prison and a $26 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. — John Lamont Winn, 53, of Vallejo, was sentenced today by U.S. District Judge Troy L. Nunley to two years and nine months in prison for passing counterfeit $100 bills, U.S. Attorney McGregor W. Scott announced.

Winn was convicted by a jury on May 3, 2018 after a four-day trial. According to court documents and evidence presented at trial, on June 13, 2017, Winn and two associates passed approximately $6,600 over six transactions in less than one hour at a casino in Lincoln. Those bills were detected as counterfeit by the casino’s bank. On June 16, 2017, Winn and another associate passed approximately $29,200 in counterfeit currency at two banks in Vallejo. The bills were held aside by the bank on the basis of their appearance, and they were later determined by the Secret Service to be counterfeit. Winn was also ordered to pay a total of $16,600 in restitution to the casino and bank.

This case was the product of an investigation by the United States Secret Service. Assistant U.S. Attorneys Matthew G. Morris and Quinn Hochhalter prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against Domingo Ene, 27, of Roseville; Joshua Hopoi, 22, of Sacramento; and Raymond Su, 29, of Sacramento, charging them with a conspiracy to steal U.S. mail and possession of stolen U.S. mail, U.S. Attorney McGregor W. Scott announced.

According to court documents, from April 2018 to July 2018, the three men conspired to steal mail that was passing through Sacramento International Airport. All three defendants worked at Sacramento International Airport as employees of a company that provided ground services. They were responsible for loading U.S. mail from the Sacramento area onto departing flights, as well as unloading incoming mail from arriving flights. The indictment alleges that they opened containers of mail and stole items, especially greeting cards. The defendants removed cash and gift cards from the stolen mail items, and they used the gift cards to make purchases.

This case is the product of an investigation by the U.S. Postal Inspection Service with assistance from the Narcotics and Economic Crime Investigations Task Force, Roseville Police Department, Citrus Heights Police Department, Sacramento County Sheriff’s Department, and Sacramento Police Department. Assistant U.S. Attorney Miriam R. Hinman is prosecuting the case.

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

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Ruben Valdez, 26, of Stockton, charging him with being a felon in possession of a firearm and ammunition and illegal possession of a machine gun, U.S. Attorney McGregor W. Scott announced.

According to court documents, on November 13, 2017, Valdez was found in possession of a stolen Glock, Model 20 handgun, with a selector switch designed to convert a semi‑automatic firearm to a fully automatic machine gun. Valdez is prohibited from possessing firearms and ammunition based on prior felony convictions.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Stockton Police Department, and the San Joaquin County District Attorney’s Office. Assistant U.S. Attorneys Shea J. Kenny and Cameron L. Desmond are prosecuting the case.

If convicted, Valdez 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 applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Rodger Riquez Rodriguez, 33, of Riverdale, charging him with being a prohibited person in possession of firearms, U.S. Attorney McGregor W. Scott announced.

According to court documents, on May 22, 2018, Rodriguez was found in possession of a silver Kel-Tec P-3AT handgun. On July 24, 2018, he was found in possession of a weapon made from a rifle, Izhmash, Model SVD. Rodriguez was prohibited from possessing firearms based on a prior felony conviction and prior misdemeanor convictions for domestic violence.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Clovis Police Department, the Fresno County Sheriff’s Office, the United States Marshals Service, and the Fresno County District Attorney’s Office. Assistant U.S. Attorney Mark J. McKeon is prosecuting the case.

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

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

SACRAMENTO, Calif. — Thongchone Vongdeng, 38, of Stockton, was sentenced today by U.S. District Judge Troy L. Nunley to time served, which was three years in custody, for his participation in a scheme that involved hundreds of fraudulent transactions on Target REDcard accounts and at least 1,000 victims across the United States, U.S. Attorney McGregor W. Scott announced.

San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for thefts of mail and identity theft crimes committed against the public.”

According to the court documents, between March 2014 and September 2015, Vongdeng and eight co-conspirators stole personal information from victims and created unauthorized accounts in order to purchase merchandise. Part of the scheme involved using Target REDcard account numbers to buy large amounts of electronics, prepaid gift cards, and other goods at Target locations throughout the Sacramento area, northern California, and elsewhere.

In all, more than 300 counterfeit accounts were used or trafficked by members of the conspiracy, and over 1,000 victims have been identified as having had their identities compromised as a result of the conspiracy. All defendants are residents of Stockton. All of defendants pleaded guilty, and their sentences are as follows:

Boone B. Khoonsrivong, 41, was sentenced to five years and five months in prison.

Daisy Sysengrat, 32, was sentenced to two and half years in prison.

Vuthiya Tim, 33; was sentenced to three years and two months in prison.

Meghan Paradis, 34; was sentenced to two and half years in prison.

Sequoia Valverde, 35; was sentenced to three years and one month in prison.

Amber Collins, 33; was sentenced to two and half years in prison.

Somaly Siv, 32; and was sentenced to two and half years in prison

Jaffrey Brown, 34, was sentenced to three years and two months in prison.

This case was the product of an investigation by the United States Postal Inspection Service and the Stockton Police Department. Assistant United States Attorneys André M. Espinosa and Rosanne L. Rust are prosecuting the case.

FRESNO, Calif. — Three citizens of Mexico were sentenced on Monday for immigration offenses related to their prior deportations, U.S. Attorney McGregor W. Scott announced.

U.S. v. Julio Cesar Delgadillo (1:18-cr-050) Delgadillo, 47, Mexican national residing in Visalia, was sentenced Monday to five years and three months in prison for being a deported alien found in the United States. He was indicted on March 8, 2018, and pleaded guilty on June 18, 2018. According to court records, Delgadillo was deported on December 1, 2016, following a prior conviction and sentence for being a deported alien found in the Unites States. According to the 2012 indictment, Delgadillo was convicted in Tulare County in 2003 of assault with a firearm and sentenced to three years in prison.

U.S. v. Ramon Quintero (1:18-cr-127) Quintero, 48, Mexican national residing in Kern County, was sentenced Monday to 18 months in prison after pleading guilty to being a deported alien found in the United States. He was indicted on June 14, 2018. According to the indictment, Quintero was previously deported on November 14, 2008, after being convicted of second degree robbery in 1999 and serving a six-year sentence.

U.S. v. Bernardo Guzman-Cruz (1:18-cr-128) Guzman-Cruz, 45, Mexican national residing in Kings County, was sentenced Monday to 18 months in prison after pleading guilty to being a deported alien found in the United States. He was indicted on June 14, 2018. According to the indictment, Guzman-Cruz was previously deported on July 14, 2012, after being convicted of a domestic violence offense in 2003 and sentenced to two years in prison.

These cases were the product of investigations by the U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO).

FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Raul Cardenas-Solis (Cardenas), 22, a citizen of Michoacán, Mexico, today to three years and 10 months in prison for conspiring to cultivate marijuana on public land, U.S. Attorney McGregor W. Scott announced.

In addition to his prison sentence, Judge Drozd ordered Cardenas to pay $11,195 in restitution to the U.S. Forest Service to defray the costs of cleaning up the area damaged by the cultivation operation.

On March 12, 2018, Cardenas pleaded guilty to the charges. According to court documents, in July, 2017, law enforcement officers found Cardenas checking water lines at a marijuana cultivation site in the North Meadow Creek area in Tulare County in the Sequoia National Forest. Cardenas resided at the site, which contained 10,488 marijuana plants. The cultivation operation caused extensive damage to the land and natural resources as a result of deforestation, pesticide and fertilizer use, the diversion of natural water sources, and trash dumped at the site.

This case was the product of an investigation by the U.S. Forest Service with assistance from U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Karen A. Escobar prosecuted the case.

SACRAMENTO, Calif. —Roberto Alvarez-Rivera, 84, a Mexican citizen residing in French Camp, pleaded guilty today to theft of government property, U.S. Attorney McGregor W. Scott announced.

According to court documents, in 1954, Alvarez obtained the birth certificate of his cousin, who was a U.S. citizen, and used it to create a false identity to obtain a Social Security number and residence and employment in the United States. In 1996, Alvarez filed for Social Security retirement benefits under his false identity and collected approximately $221,210 in Social Security retirement benefits from 1996 to 2017. This money was the property of the United States, and Alvarez collected the money knowing he was not entitled to it.

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

Alvarez is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on October 22, 2018. Alvarez faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against David Donald Savage, 44, of Sacramento, charging him with possession with intent to distribute methamphetamine and heroin and possession of a firearm in furtherance of a drug trafficking offense, U.S. Attorney McGregor W. Scott announced.

According to court documents, Savage was arrested after a search of his vehicle revealed a backpack containing a loaded .45-caliber Springfield XD pistol, 120 grams of methamphetamine, 30 grams of heroin, and a scale.

This case is the product of an investigation by the Bureau of Alcohol Tobacco, Firearms, and Explosives, Sacramento County Sheriff’s Department, and Sacramento County District Attorney’s Office. Assistant U.S. Attorneys Quinn Hochhalter and Justin Lee are prosecuting the case.

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

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

SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Russell Valenzuela, 42, of Sacramento, charging him with unlawful possession of unregistered firearms, prohibited possession of a firearm, and possession with intent to distribute methamphetamine, U.S. Attorney McGregor W. Scott announced.

According to court documents, Valenzuela was found to be in possession of two fully automatic submachine guns and 55 grams of methamphetamine following a search of the house where he was residing.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sacramento Sheriff’s Department, and the Sacramento County District Attorney’s Office. Assistant U.S. Attorneys Quinn Hochhalter and Justin Lee are prosecuting the case.

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

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Brian Baptiste Formiconi, 39, of Roseville, charging him with sexual exploitation of a child, distribution of child pornography, and possession of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, the Royal Canadian Mounted Police investigated a series of groups of users who were trading child pornography using Kik Messenger. Eventually, it was discovered that a user, whose account was traced to Roseville, was trading child pornography with at least three members of these groups. Further investigation lead to a search warrant for Formiconi’s home. During the search, at least one child pornography video was found on a laptop in the home.

This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Royal Canadian Mounted Police. Assistant U.S. Attorneys Audrey Hemesath and Roger Yang are prosecuting the case.

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

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

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Everado Cuadro Campos, 49, of Michoacán, Mexico, charging him with conspiracy to grow marijuana with the intent to distribute it and damaging public lands and natural resources, U.S. Attorney McGregor W. Scott announced.

According to court documents, on July 17, 2018, Campos was arrested in a marijuana garden in the Shasta-Trinity National Forest in Shasta County. Water to irrigate the marijuana plants was diverted from the Rock Creek drainage area, and there was an extensive waterline and trail system in the forest to tend to the marijuana plants.

This case is the product of an investigation by the United States Forest Service and the California Department of Fish & Wildlife.

If convicted, Campos faces a mandatory minimum penalty of 10 years in prison and up to life in prison and a $10 million fine for the marijuana conspiracy and manufacturing counts. If convicted of the environmental crime, Campos faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Scott Radtke, 56, of Clovis, was arraigned today on a nine-count indictment charging him with bank fraud and aggravated identity theft, U.S. Attorney McGregor W. Scott announced.

According to court documents, Radtke owned California Motoring Company, a car dealership in Clovis. Beginning as early as January 1, 2016, and continuing through June 2017, Radtke executed a scheme to defraud banks. When customers wanted to buy vehicles that Radtke’s dealership did not have in its inventory, Radtke offered customers the opportunity to buy them from other dealerships. Radtke received up-front payments from the customers or their banks, but did not give that money to the other dealerships. Instead, he spent it on business and personal expenses. Radtke then signed the customers’ names on sale documents and loan applications, which led banks to issue loans without the customers’ knowledge or authorization. Radtke’s actions involved at least 48 vehicles and over $2 million in fraudulently obtained goods and funds.

This case is the product of an investigation by the California Department of Motor Vehicles, the Federal Bureau of Investigation, and the Clovis Police Department. Assistant U.S. Attorney Michael G. Tierney is prosecuting the case.

If convicted, Radtke 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. — A federal grand jury returned a four-count indictment today charging Alfredo Sanchez, 39, of Madera, and Saybyn Borges, 27, of Sacramento, with conspiracy to distribute fentanyl, distribution of fentanyl, and possession with intent to distribute fentanyl, U.S. Attorney McGregor W. Scott announced. Sanchez was also charged with being a felon in possession of a firearm.

According to the indictment, between May 3, 2018, and June 7, 2018, in Placer, San Joaquin and Madera Counties, Sanchez and Borges conspired to distribute and possess with intent to distribute fentanyl. According to the criminal complaint, Sanchez and Borges were involved in the sale of approximately 7,500 counterfeit oxycodone pills that were found to contain fentanyl, a synthetic opioid.

A search warrant executed on Sanchez’s residence recovered four firearms: a Kel-Tec 12 gauge shotgun, Ruger .38-caliber revolver, Colt .38-caliber Mustang Pocketlite semi‑automatic pistol, and Colt Commander .38‑caliber pistol. Sanchez is prohibited from possessing firearms.

This case is the product of an investigation by the Drug Enforcement Administration Tactical Diversion Squad. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.

If convicted of the fentanyl counts, Borges and Sanchez face a minimum five years and a maximum of life in prison and up to a $5 million fine. If convicted on the firearms possession charge, Sanchez faces up to 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — As part the Eastern District of California’s strategy to reduce violent crime by focusing on eradicating illegal firearms, U.S. Attorney McGregor W. Scott announced the sentencing today of three federal firearms offenders.

U.S. District Judge Troy L. Nunley sentenced Tony Hill, 25, of Stockton to seven years and two months in prison for being a felon in possession of a firearm. According to court documents, Hill was found in possession of a stolen Smith & Wesson pistol with a speed-loader. Hill, who has multiple prior felony convictions, was on parole at the time of his arrest from a prior offense, and had been out of prison for less than four months. This case is the product of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives and Stockton Police Department. Assistant U.S. Attorney Cameron Desmond prosecuted the case. 2:17-cr-168 TLN

U.S. District Judge Morrison C. England Jr. sentenced Nicholas J. Lopez, 31, of Sacramento to seven years in prison for being a felon in possession of a firearm. According to court documents, in October 2016, Lopez was stopped for speeding on Interstate 5 in Glenn County. Because Lopez was driving with a suspended license, the car was seized and later searched. Inside the car the officers found a 9 mm handgun with a loaded 15-round magazine, two .40-caliber firearm magazines loaded with 10 rounds, and two 9 mm firearm magazines loaded with 10 rounds. Officers then executed a search warrant at Lopez’s residence where they found additional firearms. Because Lopez has previous felony convictions, he is prohibited from possessing firearms. This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Glenn Interagency Narcotics Task Force and the California Highway Patrol. Assistant U.S. Attorney Owen Roth prosecuted the case.
2:17-cr-003 MCE

Judge Nunley sentenced Lavell McDonald, 38, of Stockton, to five years in prison for being a felon in possession of a firearm. According to court documents, on February 16, 2016, McDonald was stopped while driving a moped in Stockton for an outstanding warrant. Officers searched him and found a 9 mm handgun with a bullet in the chamber. They also found a loaded magazine that matched the handgun nearby. McDonald had previously been convicted of a felony and was prohibited from possessing a firearm or ammunition. This case is the product of an investigation by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Stockton Police Department. Assistant U.S. Attorney Owen Roth prosecuted the case. 2:17-cr-010 TLN

These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.

FRESNO, Calif. — A federal grand jury returned a three-count indictment Thursday against Saul Arreola-Cardenas, 27, of Mexico, charging him with conspiracy to grow marijuana with the intent to distribute it and damaging public lands and natural resources, U.S. Attorney McGregor W. Scott announced.

According to court documents, Arreola-Cardenas was apprehended near Sawmill Road in the Sequoia National Forest after the U.S. Forest Service received a tip regarding a suspected marijuana grow in the area. Law enforcement agents scouted the area in an attempt to locate the site, and they eventually spotted part of the grow site. At that time, they encountered Arreola‑Cardenas walking along a trail near the site while carrying buckets and speaking on a cellphone.

Upon further investigation, law enforcement agents found approximately 1,402 marijuana plants, thousands of pounds of trash, irrigation hose, camping equipment, fertilizer and pesticides at the grow site. Native trees, brush and other vegetation had been cut down at and near the grow site, and dead native wildlife were found at the site as well.

This case is the product of an investigation by the U.S. Forest Service with assistance from the Kern County Sheriff’s Office, and the U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO). Assistant U.S. Attorney Angela Scott is prosecuting the case.

If convicted, Arreola-Cardenas faces a minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison, and a $10 million fine. If convicted of the environmental crime, Arreola-Cardenas faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. If convicted, Arreola-Cardenas may also be liable for restitution to the U.S. Forest Service for damages stemming from the marijuana cultivation activities. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned an eight-count indictment today against Fernando Hernandez-Hernandez, 58, a Mexican citizen residing in Fresno, charging him with production and sales of false identification documents, possession of document‑making implements with intent to make false identification documents, fraud and misuse of visas and related documents, and being a previously deported alien found in the United States, U.S. Attorney McGregor W. Scott announced.

According to court documents, in March and May 2018, Hernandez-Hernandez manufactured and sold false identification documents to buyers. He is also charged with possessing document-making implements primarily used to manufacture the false identification documents. These documents included social security cards and lawful permanent resident “green” cards. Hernandez‑Hernandez is also charged with being found in the United States following a prior deportation.

This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Laura D. Withers is prosecuting the case.

If convicted, Hernandez-Hernandez faces a maximum statutory penalty of 15 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. — U.S. District Judge Troy L. Nunley sentenced Sarah Laray Sandoval, 40, of West Sacramento, today to three years and three months in prison for her participation in a scheme that involved stealing U.S. Mail and DMV data to commit bank fraud and identity theft, U.S. Attorney McGregor W. Scott announced.

San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “Postal Inspectors work closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for fraud schemes committed against the public.”

On May 10, 2018, Sandoval pleaded guilty to three counts of bank fraud and one count of aggravated identity theft. According to court documents, between December 2016 and June 2, 2017, Sandoval and co-defendant Anthony Andrew Zamarron, 38, of Elk Grove, and others, stole mail throughout Sacramento and Yolo Counties, including neighborhoods in West Sacramento, Elk Grove, and Sacramento. Then Sandoval and her associates cataloged the stolen mail, profiled victims for identity theft, and researched victims using DMV databases. Sandoval and her associates opened bank and credit accounts in the name of mail theft victims. They forged signatures and deposited the forged checks into accounts in Sandoval's name or into fraudulently opened accounts in victim names. They caused financial institutions to send debit and credit cards and related items to U.S. mail boxes under their control or to which they had access, including Sandoval's own residence.

Sandoval worked at the California DMV starting on June 26, 2000, and was in the DMV “Mandatory Actions Unit” from 2005 to July 14, 2017. She was responsible for making final decisions on reinstating the driving privileges for, among other offenses, driving under the influence. As a senior technician, Sandoval had access to statewide DMV records for license holders and databases containing license holders’ assigned driver license number and personal information, including name, date of birth, business, or residence mailing address. Sandoval accessed DMV data to assist the bank fraud and identity theft scheme.

Sandoval and her associates’ bank fraud and identity theft scheme involved over 100 different victims and intended loss of over $77,000.

Charges are pending against Zamarron, and he has not yet appeared in federal court on these charges. He is presently in custody in the state of Nevada for unrelated charges. The charges against Zamarron are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of investigation by the U.S. Postal Inspection Service with assistance from the California DMV Special Investigations Unit and the Elk Grove Police Department. Assistant U.S. Attorney Michelle Rodriguez is prosecuting the case.

SACRAMENTO, Calif. — Porsha D. Dickens, 44, of Vallejo, pleaded guilty Tuesday to conspiring to submit false claims for tax refunds to the Internal Revenue Service, U.S. Attorney McGregor W. Scott announced.

According to court documents, from March 2011 through March 2013, Dickens and her co-defendant Dionna Bradshaw participated in a conspiracy to submit false tax returns to the IRS by obtaining personal identifying information of others, and then submitting returns seeking refunds to which the people listed on the returns were not entitled. To pursue the refunds, false statements were placed on the tax returns regarding employers, income, withholding from income, and eligibility for certain tax credits, among other things. The employers listed on most of the fraudulent returns were companies purportedly belonging to Dickens. The fraudulently obtained tax refunds were frequently directly deposited into the bank accounts of Dickens and Bradshaw. The total amount of refunds claimed in connection with the conspiracy was over $300,000.

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

Dickens is scheduled to be sentenced by U.S. District Judge John A. Mendez on October 23, 2018. Bradshaw previously pleaded guilty and also awaits sentencing. Dickens faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — On April 12, 2018, a federal grand jury returned a seven-count indictment against Angela Milton, 35, of Fresno, charging her with aiding and assisting in the preparation and presentation of false and fraudulent tax returns, U.S. Attorney McGregor W. Scott announced.

The case was sealed until Milton’s arrest on Tuesday. According to court documents, between 2007 and 2014, Milton worked as a tax examining technician at the IRS in Fresno. Between 2010 and 2013, Milton allegedly prepared and filed false and fraudulent federal income tax returns for others and for herself. She added false information that she knew would increase the amount of the refund. For some tax returns, and without the authorization of the taxpayer, Milton claimed a split refund with part of the refund amount going to the taxpayer and the remaining refund directly deposited into accounts to which Milton had access. For other taxpayers, Milton filed a tax return without their knowledge or consent and caused the entire refund amount to be deposited into accounts to which Milton had access. As a result of her conduct, Milton is alleged to have defrauded the IRS of over $170,000.

This case is the product of an investigation by the U.S. Department of the Treasury, Office of Inspector General and IRS Criminal Investigation. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.

If convicted, Milton faces a maximum statutory penalty of three 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. — Marcus Israel Butler, 33, of Sacramento, was sentenced today by United States District Judge John A. Mendez to 41 months in prison and ordered to pay over $353,000 in restitution for fraud involving a debit card, United States Attorney McGregor W. Scott announced.

According to court documents, Butler traveled from Sacramento to cities throughout California and the rest of the United States, including the East Coast, Midwest, and Alaska, using a revoked debit card to purchase products from Apple stores. Butler told store associates that there was a problem with his debit card and invited the associates to call his bank. In fact, it was Butler’s conspirator with whom the associates spoke. The conspirator gave the sales associates a false code that allowed the transactions to be completed on Butler’s revoked debit card. Butler was arrested in Colorado after attempting further fraudulent purchases at Apple stores.

Butler also used the revoked debit card to purchase other goods and services. All totaled, the loss caused by Butler’s fraud scheme was approximately $353,000.  

This case was the product of an investigation by the United States Secret Service. Assistant United States Attorney Todd A. Pickles prosecuted the case.

SACRAMENTO, Calif. — Marcus Israel Butler, 33, of Sacramento, was sentenced today by United States District Judge John A. Mendez to 41 months in prison and ordered to pay over $353,000 in restitution for fraud involving a debit card, United States Attorney McGregor W. Scott announced.

According to court documents, Butler traveled from Sacramento to cities throughout California and the rest of the United States, including the East Coast, Midwest, and Alaska, using a revoked debit card to purchase products from Apple stores. Butler told store associates that there was a problem with his debit card and invited the associates to call his bank. In fact, it was Butler’s conspirator with whom the associates spoke. The conspirator gave the sales associates a false code that allowed the transactions to be completed on Butler’s revoked debit card. Butler was arrested in Colorado after attempting further fraudulent purchases at Apple stores.

Butler also used the revoked debit card to purchase other goods and services. All totaled, the loss caused by Butler’s fraud scheme was approximately $353,000.  

This case was the product of an investigation by the United States Secret Service. Assistant United States Attorney Todd A. Pickles prosecuted the case.

SACRAMENTO, Calif. — U.S. District Judge William B. Shubb sentenced Francisco Felix, 45, of Mountain House, to 20 years in prison for his role in leading a large, multi-defendant drug-trafficking conspiracy that moved significant quantities of methamphetamine from Mexico into California and throughout the United States, and that controlled at least three large marijuana grows in the Central Valley of California, U.S. Attorney McGregor W. Scott announced.

U.S. Attorney Scott stated: “This defendant coordinated the smuggling of vast amounts of  methamphetamine from Mexico into the United States and facilitated their distribution throughout the Central Valley.  Through hard work and coordination with our many law enforcement partners, we were able to bring Felix to justice.  We are committed to continuing the fight against large-scale drug trafficking enterprises and will prosecute them to the fullest extent of the law.”

On August 7, 2017, a federal jury convicted Felix of one count of conspiring to distribute methamphetamine, one count of conspiring to manufacture and distribute marijuana, and three counts of using a cellphone to facilitate a drug trafficking crime.

On February 13, 2014, Felix and 13 other defendants were charged with a number of drug-trafficking crimes. Felix is the only defendant to go to trial; 10 co-defendants pleaded guilty and three are fugitives.

This case arose from a year-long investigation that revealed a drug-trafficking organization with connections to the state of Sinaloa in Mexico. The organization was based in the Central Valley of California, and actively imported large amounts of methamphetamine into the United States. Evidence at trial established that Felix and his network were capable of importing 50 pounds of methamphetamine (with a wholesale value of approximately $200,000) into the United States every eight days.

In addition, the evidence at trial established that the organization was cultivating substantial quantities of marijuana at many properties in both Stanislaus and San Joaquin counties.

Over nine months, investigators acquired over 80 pounds of methamphetamine, approximately 20 pounds of marijuana, and six firearms, including three assault rifles and a “Desert Eagle” .50-caliber handgun, from members of the organization. Finally, on the day of Felix’s arrest, investigators seized over 2,100 marijuana plants at properties under Felix’s control.

This case is the product of an investigation by the California Department of Justice’s Mountain and Valley Marijuana Investigation Team (MAVMIT), under the auspices of the Central Valley High Intensity Drug Trafficking Area (HIDTA) Program; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); the Placer County District Attorney’s Office; the Placer County Special Investigations Unit (SIU); the Sheriff’s Departments from Placer, El Dorado and Sacramento Counties; the California Department of Fish and Wildlife; the California Department of Corrections and Rehabilitation; the California National Guard, Counterdrug Task Force; and the Yolo Narcotic Enforcement Team (YONET). In addition, at the conclusion of the investigation, hundreds of law enforcement officers from several states took part in a 28-location takedown.

Assistant U.S. Attorneys Justin Lee and Michael Beckwith prosecuted the case.

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

FRESNO, Calif. — Thomas Lee Crow, 49, of Fresno, pleaded guilty today to aiding and abetting an unlawful animal fighting venture involving a large cockfighting enterprise, U.S. Attorney McGregor W. Scott announced.

Animal fighting is illegal under federal law. In cockfighting, roosters are typically outfitted with sharp instruments or spurs on their legs and fight to the death with spectators betting on the outcome.

According to his plea agreement, law enforcement officers searched Crow’s rural Fresno residential property last summer after he was found at a large cockfighting event in Kerman. At the cockfight, Fresno County deputies and detectives recovered 129 fighting roosters, including 28 dead and nine injured roosters. Crow was in possession of $22,800 in cash, along with a score sheet that tracked fighting bird entries and winnings. They also found cockfighting equipment, such as gaffs, blades, sheaths, gamecock leather boots, and scales. During the search of Crow’s residence, officers found an additional 200 fighting roosters and other items associated with cockfighting. They seized over 300 gaffs, including Mexican slashers, injectables used for fighting birds, and scoresheets.

Crow is scheduled for sentencing on October 22, 2018, before Chief U.S. District Judge Lawrence J. O’Neill. Crow 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.

This case is the product of an investigation by the U.S. Department of Agriculture Office of Inspector General, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Fresno County Sheriff’s Office, Humane Society, and Central California SPCA. The Environmental Crimes Section of the U.S. Department of Justice also assisted in the investigation.

The U.S. Attorney’s Office has partnered with the Rural Crimes and Animal Cruelty Unit of the Fresno County District Attorney’s Office in coordinating the filing of charges against Crow and three spectators at the cockfight in Kerman. The District Attorney’s Office prosecuted and convicted the spectators Job Hernandez, 35, of Visalia, Javier Flores-Arreola, 49, of Los Banos, and Javier Cerda, 65, of Reedley on animal cruelty charges. Assistant United States Attorney Karen A. Escobar prosecuted the case against Crow.

FRESNO, Calif. — John Thomas Terrence, 75, of Marina del Rey, pleaded guilty today to health care fraud involving a scheme to defraud the California workers’ compensation insurance system, U.S. Attorney McGregor W. Scott announced.

According to court documents, Terrence, a clinical psychologist saw patients in Bakersfield by “Skype,” generated reports for each patient that were virtually word-for-word identical, and then submitted identical bills to the insurance companies. Co-defendants Bhahar Gharib-Danesh, 41, of Woodland Hills, and Na Young Eoh, 44, of Bakersfield, were chiropractors working at the same company.  They previously pleaded guilty to health care fraud charges in this case.  The three defendants admitted to assisting in submitting bills to workers’ compensation insurers for medical-legal evaluations for which they were not legally permitted to bill.

Pain Free Diagnostics Inc. (dba Pain Free Management) pleaded guilty on July 9, 2018, to conspiracy to commit health care fraud and agreed to pay restitution to the defrauded worker’s compensation insurers in the amount of $1.2 million.

This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Insurance Fraud Division, and the Kern County District Attorney’s Office. Assistant U.S. Attorneys Mark J. McKeon and Michael Tierney are prosecuting the case.

Terrence is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on October 22, 2018; Gharib-Danesh is scheduled to be sentenced on October 1, 2018; and, Eoh is scheduled to be sentenced on September 4, 2018.  Each defendant faces a maximum statutory penalty of 10 years in prison and a $250,000 fine.  The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — A federal grand jury returned a five-count indictment Thursday against Javier Beltran, 34, of Strathmore, and Ulises Medina, 24, of Earlimart, charging them with conspiracy to commit Hobbs Act robbery, interference with commerce by robbery, and brandishing a firearm during and in relation to a crime of violence, U.S. Attorney McGregor W. Scott announced.

According to court documents, Beltran and Medina were members of a conspiracy that committed a series of armed robberies of gas stations, convenience stores, and liquor stores from May 19, 2016, until July 22, 2017.

Beltran, Medina, and their co-conspirators used a similar modus operandi for each robbery. First, Beltran, Medina, and other conspirators would steal a Chevrolet or GMC sports utility vehicle or truck manufactured between 2000 and 2006. Beltran, Medina, and other conspirators would push a hole in the lock on the door of the vehicle, open the steering shaft, and start the vehicle without a key. Next, Beltran, Medina, and other conspirators would drive to a gas station, convenience store, or liquor store in the stolen vehicle. They would park the vehicle outside, and Beltran, Medina, and other conspirators, wearing masks and gloves, would enter the store carrying guns. They would order the store clerk to give them money, then they would steal money from the cash register or safe in the store. Finally, Beltran, Medina, and other conspirators would flee in the stolen vehicle, drive it a short distance, and switch to another getaway vehicle, often leaving the stolen vehicle running.

The indictment alleges that Beltran, Medina, and their conspirators committed at least seven armed robberies in Tulare and Kern Counties between May 2016 and January 2017. The next month, Beltran, Medina, and other conspirators travelled to Nebraska, where they engaged in similar conduct. Beltran, Medina, and their conspirators then returned to California, where they committed three more armed robberies.

According to the indictment, in furtherance of the conspiracy, Beltran, Medina and other conspirators committed robberies that included:

May 19, 2016, Applegate’s Market, Porterville

June 29, 2016, Applegate’s Market, Porterville

October 2, 2016,  EZ Shop-N-Go, Strathmore

November 4, 2016, EZ Shop-N-Go, Strathmore

December 20, 2016, SA Market, Earlimart

December 30, 2016, Payless Liquor, Bakersfield

January 18, 2017, Joe’s Westside, Porterville

February 22, 2017, Robbery of Tienda Mexicana Guerrero, Fremont, Nebraska

March 13, 2017, Amigo’s Market, Earlimart

May 12, 2017, Sunshine Market, Earlimart

July 22, 2017, Woodville Liquor, Porterville

This case is the product of an investigation by the Federal Bureau of Investigation, Tulare County Sheriff’s Office, Porterville Police Department, Lindsay Police Department, Bakersfield Police Department, Fremont (Nebraska) Police Department, and Dodge County (Nebraska) Sheriff’s Office. Assistant U.S. Attorneys Ross Pearson and Kathleen Servatius are prosecuting the case.

If convicted of the conspiracy to commit a Hobbs Act robbery, the defendants face a mandatory statutory penalty of 20 years in prison, a maximum penalty of life in prison and a $250,000 fine. Beltran was charged with two counts and Medina was charged with one count of interference with commerce by robbery, which carries a maximum of 20 years in prison and a $250,000 fine if convicted. Beltran was charged with two counts and Medina was charged with one count of brandishing a firearm during and in relation to a crime of violence, which carries a mandatory statutory penalty of at least seven consecutive years up to a maximum statutory penalty of life in prison, and a $250,000 fine if convicted. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

FRESNO, Calif. — Following a month-long jury trial, Douglas Jason Way, aka Jason Way, 45, of Evanston, Illinois, was found guilty today on all counts for a conspiracy to manufacture and distribute synthetic marijuana, U.S. Attorney McGregor W. Scott announced.

On May 15, 2014, Way was charged by an indictment filed in Fresno with conspiring to manufacture, distribute, and possess with intent to distribute synthetic cannabinoids or designer drugs, commonly known at the street level as “spice,” “K2” or “herbal incense.” He was also charged with manufacturing, distributing, possessing with intent to distribute, and attempting to possess with intent to distribute synthetic cannabinoids and with conspiring to possess acetone, a List II chemical, for the purpose of manufacturing synthetic cannabinoids, conspiring to defraud the United States and commit offenses against the United States, and causing the introduction of misbranded drugs into interstate commerce.

According to court documents, Way was the leader of a drug conspiracy involving the manufacture and distribution of at least 24 tons of smokable synthetic cannabinoids that contained the synthetic drugs AM-2201 and XLR11, also known as 5-F-UR-144. The chemicals came from China and the finished product was sold to smoke shops and retail outlets throughout the United States and generated over $32 million in illicit income in five months. Manufactured by companies called Zencense and ZenBio, the drugs were processed in warehouses in Millbrae and Stockton and marketed under the brand names of Bizarro, Posh, Sonic Zero, Headhunter, Neutronium, and Orgazmo. They were distributed to The Stuffed Pipe smoke shops located throughout the Central Valley of California, as well as to other retail establishments in 47 states.

Public health and law enforcement agencies have seen the emergence of synthetic drug use. State and local public health departments note that synthetic cannabinoids cause serious adverse health effects, including agitation, anxiety, nausea, vomiting, tachycardia, elevated blood pressure, tremor, seizures, hallucinations, paranoid behavior, and even death. According to the American Association of Poison Control Centers, poison centers throughout the United States received 5,230 calls about exposures to these drugs in 2012 and 2,656 exposures in 2013. Making matters worse, synthetic cannabinoids are often marketed as “legal” substances and sometimes labeled as “herbal incense” or “potpourri.” The 2012 Synthetic Drug Abuse Prevention Act made 26 types of synthetic cannabinoids, including AM-2201, Schedule I drugs under the Controlled Substance Act. DEA placed JWH-018 in Schedule I in 2011 and placed XLR11 in Schedule I in 2013.

This case was the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the DEA, IRS, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Food and Drug Administration (FDA), and Fresno County Sheriff’s Office. Numerous other law enforcement agencies assisted in follow-up investigation, including the St. Cloud, Minnesota Police Department; Mars Hill, North Carolina Police Department; Montgomery County, North Carolina Sheriff’s Office; Buncombe County, North Carolina, Sheriff’s Office; and Willis, Texas Police Department. The OCDETF Program was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. This OCDETF investigation was also part of a nationwide law enforcement effort coordinated by the DEA’s Special Operations Division. Assistant U.S. Attorneys Karen A. Escobar and Vincenza Rabenn are prosecuting the case.

Way is scheduled for sentencing on October 29, 2018, before U.S. District Judge Dale A. Drozd. With respect to the drug charges, Way faces a maximum statutory penalty of 20 years in prison and a $1 million fine, as to each count. The conspiracy to defraud charge carries a maximum penalty of five years in prison and a $250,000 fine. The FDA mislabeling charge carries a maximum statutory penalty of three years in prison and a $10,000 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.

Way is also facing the forfeiture of over $589,000, representing the drug proceeds that he derived from the illegal operation. To date, the U.S. Attorney’s Office has forfeited more than $6.5 million of drug proceeds: $6,488,000 in cash and $191,000 in other assets, including a 2013 Ford F350 pickup truck and a 2014 Airstream travel trailer.

SACRAMENTO, Calif. — Demetri Dearth, 61, of Cottonwood, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to one year in prison and $2,500 in special assessments for forging and falsifying documents and then billing clients of her employment drug testing company for tests that never occurred, U.S. Attorney McGregor W. Scott announced.

According to court documents, between about 2006 and about 2010, Dearth owned and operated Advanced Substance Abuse Programs in Redding, California. This company assisted employers in complying with United States and California regulations requiring pre-employment and random employee drug screenings. Dearth’s client roster included more than 80 companies in industries as varied as aviation, trucking, construction, logging, and education. They paid her to test prospective and current employees for drug use, to notify companies of these drug test results, and to maintain testing records in compliance with federal and state regulations.

Between March 2009 and February 2010, Dearth forged some of the drug test results that she reported to her client companies. In at least 46 instances, Dearth did not forward urine samples to approved testing laboratories. Instead, she faked documents certifying that the samples had been tested and obtained negative results. Doing so allowed her to bill client companies for testing that never occurred. It also prevented these companies from knowing whether their prospective and current employees were, in fact, drug-free when they performed potentially dangerous work, such as driving heavy trucks on public highways or providing services to the airline industry.

On October 20, 2017, Dearth pled guilty to 16 counts of making false statements to a government agency and nine counts of mail fraud. Dearth has been ordered to surrender to federal authorities on September 6, 2018. After completing her prison sentence, she will serve one year of probation.

This case was the product of an investigation by the Department of Transportation, Office of the Inspector General and the California Highway Patrol. Assistant United States Attorneys Amanda Beck, Michael D. Anderson, and Lee S. Bickley prosecuted the case.

SACRAMENTO, Calif. — Attorney General Jeff Sessions, U.S. Attorney McGregor W. Scott of the Eastern District of California and DEA Special Agent in Charge Chris Nielsen announced this week Operation Synthetic Opioid Surge (S.O.S.), a new program that seeks to reduce the supply of deadly synthetic opioids in high impact areas, specifically fentanyl, and to identify wholesale distribution networks and international and domestic suppliers.

“When it comes to synthetic opioids, there is no such thing as a small case,” Attorney General Sessions said. “In 2016, synthetic opioids killed more Americans than any other kind of drug. Three milligrams of fentanyl can be fatal — that’s not even enough to cover up Lincoln’s face on a penny. Our prosecutors in Manatee County, Florida have shown that prosecuting seemingly small synthetic opioids cases can have a big impact and save lives, and we want to replicate their success in the districts that need it most. This new strategy — and the new prosecutors who will help carry it out — will help us put more traffickers behind bars and keep the American people safe from the threat of these deadly drugs.”

As part of Operation S.O.S., the Department will launch an enforcement surge in 10 districts that have experienced high drug overdose death rates, including the Eastern District of California. The DEA Special Operations Division will coordinate efforts to ensure that leads from street-level cases are used to identify larger-scale distributors. In addition, the Organized Crime Drug Enforcement Task Forces (OCDETF) Executive Office will send an additional two-year term Assistant United States Attorney to each participating district to assist with drug-related prosecutions.

“The deadliness of synthetic opioids cannot be emphasized enough,” U.S. Attorney McGregor W. Scott said. “These drugs kill and have the power to ruin the lives of those in their grip. The Eastern District of California is a transshipment corridor for all kinds of drugs, including fentanyl and fentanyl analogues, and many of our communities, especially in the district’s northern counties, have experienced their devastating effects. We plan to employ these new resources to help protect our communities from these lethal drugs.”

“Too many Americans are caught in the terrible grip of opioid addiction, and fentanyl can kill,” stated DEA Special Agent in Charge Chris Nielsen. “We have seen an increase in the availability of synthetic opioids in this region — along with the destructive consequences that follow. DEA is committed to using every tool available to pursue those distributing this poison in our communities, and we welcome this announcement by the Attorney General.”

The Eastern District of California will use the additional resources to coordinate with district attorney offices to prosecute every readily provable case involving the distribution of fentanyl, fentanyl analogues, and other synthetic opioids. The office will also redouble efforts to disrupt the distribution of these drugs by targeting the transshipment corridors that bisect the district: Interstate Highways 5 and 80.  Through these efforts, law enforcement can stop further distribution of the drugs to the Midwest and East Coast, while also working to identify and prosecute large-scale suppliers. Already this year, 13.9 kilos (over 30 pounds) of fentanyl have been seized in the Eastern District of California.

According to the California Department of Public Health, Modoc County had an opioid overdose death rate of 23.78 out of 100,000 residents in 2017, which is about five times the overall rate for California, which is 4.49 opioid deaths per 100,000 residents. Yuba and Shasta County’s opioid overdose death rate is almost three times the state’s rate.

The other nine districts participating in Operation S.O.S. are:

Northern District of Ohio

Southern District of Ohio

Eastern District of Tennessee

Eastern District of Kentucky

Southern District of West Virginia

Northern District of West Virginia

District of Maine

Western District of Pennsylvania

District of New Hampshire

SACRAMENTO, Calif. — Dustin Wilson, 41, of Clear Lake, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 10 years and 10 months in prison for distribution of cocaine and money laundering, U.S. Attorney McGregor W. Scott announced.

According to court documents, Wilson conspired with co-defendants Michele Troung and Brandon Roberts to distribute marijuana and cocaine from Sacramento to the Southeastern United States. These defendants also conspired to conceal the proceeds of their drug trafficking through various monetary transactions, including, at Wilson’s direction, using associates to send drug proceeds through MoneyGram or depositing it into Troung’s bank account.

This case was the product of an investigation by the Drug Enforcement Administration and the IRS Criminal Investigation. Assistant U.S. Attorney Todd A. Pickles prosecuted the case.

Troung was sentenced to six years and six months in prison, and Roberts was sentenced to three years and one month in prison.

SACRAMENTO, Calif. — Verenys Parra Arellanez, 23, of San Bernardino, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to three years in prison for conspiring to distribute heroin, U.S. Attorney McGregor W. Scott announced.

According to court documents, Parra Arellanez transported money to Mexico from the sale of heroin in the Eastern District of California. In total, Parra Arellanez took almost $300,000 in drug proceeds to Mexico.

This case was the product of an investigation by the Drug Enforcement Administration. Assistant United States Attorney Todd A. Pickles prosecuted the case.

Parra Arellanez is the latest defendant to be sentenced as part of the DEA’s investigation of a drug-trafficking ring centered in Sacramento and Bakersfield that distributed heroin and methamphetamine throughout the Eastern District. To date, 12 defendants have been sentenced to a combined 69.5 years of incarceration.

Charges are pending against co-defendants Maria D. Arellanez Rios, Juan Alamilla Guzman, and Jesus Ramon Machado Lopez, who are believed to be fugitives. They are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. —Carissa Carpenter, 55, formerly of Malibu, pleaded guilty today to two counts of mail fraud and one count of lying to a federal agent, U.S. Attorney McGregor W. Scott announced. 

According to court documents, from 1997 until October 24, 2014, Carpenter represented to investors and others that she had a project to build a movie studio in Northern California. As a result of the scheme, investors, firms who did work for Carpenter, and municipalities collectively lost millions on the project.

According to the factual basis in support of the plea, Carpenter claimed that her projected movie studio complex was supported by well-connected people in the entertainment industry and that she had invested hundreds of millions of dollars of her own money in the project and that she had arranged financing for the project but needed investment or bridge loans until the alleged financing was complete. The locations of the project varied: El Dorado Hills, north of the Sacramento International Airport in Sutter County, Lathrop, the former naval base on Mare Island in Vallejo, and Dixon, among other places. Additionally, Carpenter represented that reputable architecture, construction, design, and public relations firms were involved in the project, and that she had or was in the process of finalizing the purchase of the land where the studio would be built. As a result, investors gave Carpenter millions of dollars to invest in her studio project.

In fact, Carpenter used investor money to fund her personal expenses and extravagant lifestyle. Contrary to her claims, the Hollywood people were not involved in the project at all or had little involvement. Similarly, the architecture, construction, design, and public relations firms were not involved or had done only preliminary work on the project. Carpenter also did not own or purchase property for the studio.

Further, during the investigation in July 2013, Carpenter told an FBI agent that she told investors that she was going to use their money for personal expenses and that she had used 50 to 75 percent of investor money for the project. These statements were false.

This case is the product of an investigation by the Federal Bureau of Investigation and IRS-Criminal Investigation. Assistant U.S. Attorneys Todd A. Pickles and Rosanne L. Rust are prosecuting the case.

Carpenter is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on September 28, 2018. Carpenter faces a maximum statutory penalty of 20 years in prison and a $250,000 fine or twice the gross loss or gain for the two counts of mail fraud and up to five years in prison for false statement to a government agent. 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. — Wesley Keith Smith, 35, of Fairfield, was sentenced today by U.S. District Judge John A. Mendez to 15 years in prison for possessing methamphetamine with the intent to distribute it and for being a felon in possession of firearms, U.S. Attorney McGregor W. Scott announced.

According to court documents, in September 2016, police officers executed search warrants on Smith, a car he drove, and a house he was known to frequent. In that search, the officers found that Smith was in possession of more than a pound of methamphetamine, a digital scale, clear plastic baggies, $4,000 in cash, and two firearms. At the time of the search, Smith had prior state-law convictions for possession of controlled substances for sale. Smith was taken into custody at the time of the search and has remained in custody since then. He will now be transferred to the Bureau of Prisons to serve the balance of his sentence.

This case was the product of an investigation by the Fairfield Police Department and the FBI Solano County Violent Crimes Task Force. Assistant U.S. Attorney Owen Roth prosecuted the case.

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

SACRAMENTO, Calif. —Alexander Jordan Miller, 22, of Elk Grove, was sentenced today to 22 years in prison for producing child pornography, U.S. Attorney McGregor W. Scott announced.

U.S. Attorney Scott stated: “Miller was a social media predator who spent hours searching for victims who were old enough to know how to use social media, but young enough to be susceptible to his extortion scheme. Rather than physical force, he used fear to compel girls to create the videos he demanded. Today’s sentence rightly takes into account the physical and psychological pain he inflicted on the young, vulnerable victims.”

“This case highlights the critical importance of educating children about safe and responsible internet use,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Miller used the anonymity of the internet to his advantage and used coercive threats, blackmail, and shame to put his young victims in impossible situations. The impact of Miller’s despicable behavior on his victims cannot be overstated. The FBI is committed to unmasking those who use the internet to exploit the innocence of our nation’s children. We hope Miller’s sentencing serves as caution to families about internet safety and as a message to would-be offenders that such crimes will not go undetected.”

According to court documents, in 2015, Miller, under various pseudonyms, used social media and a messaging app to persuade minor victims to take and then send nude photos of themselves engaged in sexually explicit conduct. In each instance, after Miller obtained one or more nude photos of the victim, Miller demanded that the victim provide additional, and increasingly graphic, nude videos and photos. Miller told each victim that if she did not provide more nude videos or photos, he would send the victim’s friends and family the explicit photos that the victim provided previously, or he threatened to post the victim’s photos on the internet. As part of this extortion scheme, Miller used at least 12 minor victims to produce child pornography. One of the victims was 11 years old at the time of the offense.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brian A. Fogerty 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.