Eastern District of California

FRESNO, Calif. — Rosario Beltran-Leal, aka Jose Luis Aguilar, aka Dagoberto Suarez (Beltran), 44, of Sinaloa, Mexico, was sentenced today to four years and nine months in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana in the Giant Sequoia National Monument in Tulare County in the Sequoia National Forest, U.S. Attorney McGregor W. Scott announced.

According to court documents, on April 28, 2018, Beltran was found bringing over 31,000 marijuana seeds to a cultivation site in a remote area closed to the public in the Giant Sequoia National Monument. He was also in possession of a large quantity of food and cultivation supplies, including 100 hose connectors. In pleading guilty, Beltran acknowledged that he had delivered food supplies to marijuana growers in the same area in 2016. The irrigation system from the previous year was intact. Native vegetation and trees had also been trimmed to make room for the marijuana plants and water had been diverted from a tributary of Mill Creek.

This case was the product of an investigation by the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Department of Fish and Wildlife, and Tulare County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar prosecuted the case.

FRESNO, Calif. — Raul Cardenas-Solis (Cardenas), 31, a citizen of Michoacán, Mexico, pleaded guilty today to conspiring to cultivate marijuana on public land, U.S. Attorney McGregor W. Scott announced.

According to court documents, Cardenas was found checking irrigation lines at a marijuana cultivation site in the North Meadow Creek area in Tulare County in the Sequoia National Forest. Law enforcement officers found 10,488 marijuana plants at the site where Cardenas resided. 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 disposal. Cardenas has agreed to pay $11,195 in restitution to the U.S. Forest Service to clean up the area damaged by the cultivation operation.

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

Cardenas is scheduled to be sentenced by Judge Dale A. Drozd on June 4, 2018. Cardenas faces a minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Seth Adam Depiano, 36, of Clovis, pleaded guilty today to mail fraud, wire fraud and money laundering in connection with a real estate investment Ponzi scheme, U.S. Attorney McGregor W. Scott announced.

According to court documents, Depiano operated a Ponzi scheme that lured real estate investors to give money to Depiano and the businesses he controlled, including The Rental Group, US Funding and Home Services LLC, and Draymond Homes. Depiano fraudulently promised investors that he would use their money to purchase residential properties and either manage the properties for rental income or arrange for them to be renovated and resold. In many cases, Depiano promoted the properties to investors with documents that falsely represented high occupancy rates. Depiano oftentimes had no authority to purchase or sell the properties and misled investors with fraudulent documents misrepresenting the properties’ ownership. Some of the properties Depiano marketed to investors did not even exist.

Depiano frequently used the investors’ money to pay his personal expenses, fund his gambling activities, and finance the settlement of the investors’ civil lawsuits against Depiano. He also paid investors purported rental income that, in fact, was money other investors gave to Depiano for investment purposes.

In his plea agreement, Depiano admitted to defrauding investors of approximately $24 million dollars and agreed to pay restitution to approximately 28 investors. Depiano also agreed to forfeit more than $700,000 seized from several bank accounts and cash, and a baseball card collection valued at more than $31,000.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.

Depiano is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 29, 2018 at 1:30 p.m. Depiano faces a maximum statutory penalty of 20 years in prison for the mail fraud and wire fraud charges, ten years in prison for money laundering, 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. — On Wednesday, March 7, 2018, McGregor W. Scott was confirmed by the U.S. Senate to be the U.S. Attorney for the Eastern District of California. He was been nominated for the position by President Donald J. Trump.

Mr. Scott was sworn in as the Court-appointed U.S. Attorney on December 29, 2017. He returned to the position he held from 2003 to 2009 when he was appointed U.S. Attorney by President George W. Bush.

Mr. Scott received his B.A. from Santa Clara University in 1985 and his J.D. from Hastings College of the Law, University of California, in 1989. He served as a deputy district attorney from 1989 to 1997 in Contra Costa County, California, and served as the elected District Attorney of Shasta County, California, from 1997 to 2003. After completing his first term as U.S. Attorney, Mr. Scott practiced as a partner with the law firm of Orrick, Herrington, & Sutcliffe LLP, focusing on white collar criminal defense and corporate investigations. In addition, Mr. Scott retired in 2008 from the U.S. Army Reserve as a lieutenant colonel after 23 years of service.

The U.S. Attorney serves as the chief federal law enforcement officer for the Eastern District of California and is responsible for prosecuting federal criminal cases and representing the United States in civil litigation. The Eastern District covers 34 counties throughout the Central Valley and the Sierras, from the Oregon border in the north to the Los Angeles County line in the south. The office has 92 attorneys and 81 non-attorney staff with offices in Sacramento, Fresno, and Bakersfield.

“I am humbled and honored to be appointed by the president to lead the committed men and women in this outstanding office. I look forward to working with them and our law enforcement partners to keep our communities safe, to safeguard the Treasury, and to provide the United States with the highest quality legal representation in all the matters we handle,” U.S. Attorney Scott said.

SACRAMENTO, Calif. — A federal grand jury returned an 18-count indictment today against Shawn Darrell Wilson, 27, of Sacramento, charging him with dealing firearms without a license, possessing a firearm as a felon, and illegal possession of a machine gun, U.S. Attorney McGregor W. Scott announced.

According to court documents, Wilson met with an undercover agent and two confidential sources on 17 occasions between September 12, 2017, and December 8, 2017, and sold them a variety of firearms, including a fully automatic machine gun, several AR-15-type rifles and pistols, and handguns. In all, Wilson sold investigators 46 firearms, many of which lacked a serial number or other identifying markings. Wilson is prohibited from possessing firearms based on a prior felony conviction.

This case is the product of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, with special assistance from the Sacramento Police Department and the Sacramento County District Attorney’s Office’s Gangs, Hate Crimes, and Narcotics unit. 

If convicted of dealing firearms without a license, Wilson faces a maximum penalty of five years in prison and a $250,000 fine. The maximum penalty for possessing a firearm as a felon and illegal possession of a machine gun is 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Kmart Corporation has paid $525,000 to resolve allegations that it violated the federal False Claims Act when it knowingly submitted claims for reimbursement to California’s Medi‑Cal program that were not supported by applicable diagnosis and documentation requirements, U.S. Attorney McGregor W. Scott announced today.

Kmart is an Illinois corporation that provides pharmacy services in several states with approximately a half dozen locations in California over the relevant time period. The Medi-Cal program is administered by the California Department of Health Care Services (DHCS) and relies on both federal and state funding to provide health care to millions of Californians, including those with low incomes and disabilities.

Medi-Cal utilizes a formulary list, commonly known as “Code 1” drugs, which designates certain restrictions for each listed drug, including restrictions pertaining to diagnoses. Medi-Cal will reimburse certain Code 1 drugs only for approved diagnoses, taking into account criteria such as the drug’s safety, efficacy, misuse potential, and cost. Pharmacies serve the critical gatekeeping function of confirming and certifying that these Code 1 drugs are dispensed for the approved diagnoses. Kmart may bill for drugs prescribed outside of the approved diagnoses only if it submits a request to DHCS that includes a justification for the non‑approved use. Today’s settlement resolves allegations that Kmart failed to confirm and document the requisite diagnoses, and in some instances dispensed drugs for non-approved diagnoses, then knowingly billed Medi-Cal for these prescriptions.

The allegations resolved by this settlement were first raised in a lawsuit filed against Kmart under the qui tam, or whistleblower, provisions of the False Claims Act by a pharmacist who worked as Pharmacist in Charge at a California Kmart location. The False Claims Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The whistleblower in this matter will receive approximately $96,500 of the recovery proceeds.

This settlement is the result of a joint effort by the United States Attorney’s Office for the Eastern District of California and California’s Bureau of Medicaid Fraud and Elder Abuse. Assistant U.S. Attorney Catherine J. Swann handled the matter for the United States, with assistance from the Department of Health and Human Services, Office of Inspector General, and the Federal Bureau of Investigation. The claims settled by this agreement are allegations only, and there has been no determination of liability.

SACRAMENTO, Calif. — Ronald C. Simmons, 76, of Colusa, pleaded guilty on Tuesday to two misdemeanor counts: unlawful baiting and unlawful taking of a migratory game bird, in violation of the Migratory Bird Treaty Act. He was immediately sentenced by U.S. Magistrate Judge Edmund F. Brennan and ordered to pay a $7,500 fine.

According to court documents, on October 21, 2017, opening day of waterfowl season in the Sacramento Valley, Simmons and his invited guests shot and killed 16 wood ducks over a baited cornfield at Butte Creek Farms. Simmons, who managed a field on the Colusa County property, had previously rolled unharvested cornstalks and intentionally spread corn kernels onto the field as bait for wood ducks, a migratory bird, for the purpose of ensuring a successful waterfowl hunting season. Exposed and scattered corn kernels can lure and attract migratory birds. According to the Migratory Bird Treaty Act, it is unlawful to hunt migratory birds using bait.

This case was the product of an investigation by the U.S. Fish and Wildlife Service. Special Assistant U.S. Attorney Erica L. Anderson prosecuted the case.

FRESNO, Calif. — Sair Maldonado-Soto (Maldonado), 22, of Perris, was sentenced today to three years and four months in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana in connection with two separate large-scale marijuana cultivation operations in Kern County in the Sequoia National Forest, U.S. Attorney McGregor W. Scott announced. Maldonado was also ordered to pay $10,756.02 to the U.S. Forest Service for the damage to public land and natural resources caused by the marijuana cultivation activities.

In September, Maldonado pleaded guilty to the conspiracy after he and his girlfriend and co-defendant, Coral Herrera, 21, also of Perris, were linked to grow sites in the Lucas Creek drainage and an area known as the Box 6 site following a four-month investigation. The investigation revealed that they were supplying material, equipment, and personnel to the two grow sites, which consisted of 10,396 marijuana plants. They were also responsible for transporting co-defendants Abel Toledo-Villa, 34, and Alfredo Cardenas-Suastegui, 56, both of Mexico, away from the Box 6 grow site after it was searched.

The marijuana cultivation operations caused extensive damage to the land and natural resources. Highly toxic pesticides were found at both sites and at Maldonado’s residence in Perris. Many miles of plastic irrigation lines were spread throughout the sites. Native trees and vegetation were also removed to make room for the marijuana plants.

The remaining three defendants have pleaded guilty. Toledo-Villa has been sentenced to five years in prison. Herrera and Cardenas-Suastegui are scheduled for sentencing on January 22 and February 12, 2018. Cardenas-Suastegui faces a statutory mandatory minimum penalty of five years in prison and a maximum penalty of 40 years in prison, and a $5 million fine. Herrera faces a maximum penalty of 20 years in prison and a fine of $1 million. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) Task Force, California Department of Justice’s Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, Kern County Sheriff’s Office, Riverside County Sheriff’s Department, Fontana Police Department, and Victorville Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.

FRESNO, Calif. — Michael Vincent Alvarez, 32, of Fresno, pleaded guilty today to striking Air-1, a Fresno Police Department helicopter, with a green laser beam, U.S. Attorney McGregor W. Scott announced.

According to court documents, on October 22, 2017, Alvarez struck a Fresno Police helicopter several times with a powerful green laser. The laser caused visual interference of the Tactical Flight Officer and disrupted an air support response to a domestic violence call. Alvarez was driving a vehicle on Highway 99 when he allegedly pointed the laser at the helicopter and tracked and struck it. When ground units were called to apprehend Alvarez, he drove through the streets of Fresno at a high rate of speed, eluding officers for several miles until he crashed into the center divider at First Street and Floradora Avenue. Following the crash, Alvarez ran into a residential area, jumping several fences until he was arrested in a backyard. A green laser pointer that officers found inside the driver side door pocket of Alvarez’s vehicle had a danger warning on it.

Alvarez is scheduled for sentencing on May 21, 2018, before U.S. District Judge Dale A. Drozd. Alvarez is facing a five-year sentence and a fine of $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

SACRAMENTO, Calif. — A federal grand jury returned a 16-count indictment today against Jesus Rodriguez, 22, and James Raymond Sykes, 23, both of Sacramento, charging them with dealing firearms without a license and conspiring to do the same, U.S. Attorney McGregor W. Scott announced. The indictment also charges Rodriguez with possessing an unregistered and unserialized short-barreled rifle, and distributing methamphetamine and cocaine.

According to court documents, Rodriguez met separately with an undercover agent and two confidential sources on 12 occasions between September 5, 2017, and December 6, 2017, and sold them a variety of firearms, including a short-barreled rifle with a 90-round drum magazine, several AR-15-type rifles and pistols, and handguns. Court records also state that Rodriguez sold the agent cocaine and methamphetamine. In all, Rodriguez sold the undercover agent 34 firearms, many of which lacked a serial number or other identifying markings. Court records state that Sykes was present at, and participated in, at least five of the firearms transactions.

This case is the product of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, with special assistance from the Sacramento Police Department and the Sacramento County District Attorney’s Office’s Gangs, Hate Crimes, and Narcotics unit.

If convicted of dealing firearms without a license, the defendants face a maximum penalty of five years in prison and a $250,000 fine. The maximum penalty for possessing an unregistered short-barreled rifle or an unserialized firearm is 10 years in prison and a $10,000 fine. The penalty for distributing methamphetamine is not less than 10 years in prison, up to life, and a $10 million fine. The maximum penalty for distributing cocaine is 20 years in prison, and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against David Patrick Seilheimer, 50, of Sacramento, charging him with receiving child pornography and possessing child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, between May 2015 and February 7, 2018, Seilheimer, using the internet, downloaded and shared child pornography videos and images. The images included prepubescent children engaged in sexual activity. 

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

If convicted, Seilheimer faces a maximum statutory penalty of 40 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 Mark A. Richards, 48, of Sacramento, charging him with advertising and distributing child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, in January 2018, Richards allegedly made child pornography available over a peer-to-peer file sharing network and provided passwords to undercover officers who asked him for access to his files. On two occasions, January 7, 2018 and January 11, 2018, those undercover officers in locations outside California obtained child pornography from Richards.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.

Richards has been in custody since his arrest on February 14, 2018. If convicted, Richards faces a maximum statutory penalty of 30 years in prison for advertising child pornography and 20 years in prison for each count of distributing child pornography, along with 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 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 nine-count indictment today against Michael Paul Grisham Smith, 44, of Grass Valley, charging him with unlawful dealing and manufacturing in firearms and unlawful possession of unregistered firearms, U.S. Attorney McGregor W. Scott announced.

According to court documents, Smith contacted a firearms vendor on the dark web seeking to sell AR-15-style “ghost” guns that have no serial number. The firearms vendor on the dark web was in fact an undercover law enforcement agent working for Homeland Security Investigations (HSI). Between December 1, 2017, and February 15, 2018, Smith manufactured and sold eight AR‑15‑style firearms without serial numbers to the undercover agent in exchange for payment in bitcoin.

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations. Assistant U.S. Attorneys Quinn Hochhalter and Justin Lee are prosecuting the case.

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

SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott announced sentences in two unrelated cases involving growing marijuana in national forests. In addition to the marijuana charges, both defendants were sentenced for depredation of federal property. Not only are the marijuana grow sites an illegal trespass, they cause significant environmental damage, through the use of harmful – and often banned – pesticides, as well as harm to natural rivers and streams, which the site’s operators divert to irrigate the marijuana crops.

In the first case, U.S. District Judge Kimberly J. Mueller sentenced Sebastian Martinez Arreola, 20, of Michoacán, Mexico, to 20 months in prison for manufacturing marijuana, conspiring to do the same, and depredation of federal property. According to court documents, Martinez Arreola and others were arrested by law enforcement on August 7, 2017, following a search of a marijuana-cultivation site in the Limedyke Mountain area of the Shasta-Trinity National Forest in Trinity County. At the site, they found approximately 2,500 marijuana plants and a .45‑caliber Ruger handgun.

This case was the product of an investigation by the United States Forest Service, Bureau of Land Management, the Trinity County Sheriff’s Office, the California Department of Fish and Wildlife, and the North State Marijuana Investigation Team. Assistant U.S. Attorney Richard Bender is prosecuting the case.

In the second case, Judge Mueller sentenced Pedro Sanchez Muniz, 39, native of Mexico, to two years in prison for conspiracy to manufacture at least 1,000 marijuana plants, as well as depredation of federal property. According to court documents, Sanchez Muniz was arrested by law enforcement officers at a marijuana cultivation site growing approximately 1,500 plants on the Mendocino National Forest in Tehama County. He was found tending to marijuana plants at the site.

This case was the product of an investigation by the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Department of Fish & Wildlife, and Tehama County Sheriff’s Office. Assistant U.S. Attorney James Conolly prosecuted the case.

FRESNO, Calif. — Linda Expose, 54, of Salida, appears in court today for an indictment charging her with mail fraud and fraud on the Social Security Administration, U.S. Attorney McGregor W. Scott announced.

According to court documents, Expose began receiving Social Security benefits in 1980 and concealed from the Social Security Administration her 19-year employment at a children’s hospital during which she received income under a family member’s social security number. To facilitate her continued receipt of Social Security benefits, Expose repeatedly misrepresented to the Social Security Administration that she had never used another social security number other than her assigned number, and filed multiple applications for Social Security benefits under both numbers to maximize her receipt of such benefits. Expose allegedly defrauded the Social Security Administration of approximately $190,000 in benefits she was ineligible to receive and would not have received had she truthfully reported to the Social Security Administration the income she earned from the hospital.

This case is the product of an investigation by the Social Security Administration’s Office of Inspector General. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.

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

FRESNO, Calif. —Troy Franklin, 34, of Fresno, was sentenced today by Chief U.S. District Judge  Lawrence J. O'Neill to seven years and eight months in prison for being a felon in possession of a firearm and possession of an unregistered firearm, and Stephen Walker, 42, of Fresno, pleaded guilty to being an armed career criminal, U.S. Attorney McGregor W. Scott announced.

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According to court documents in the first case, Franklin, who is prohibited from possessing firearms due to a prior felony conviction, illegally purchased an AR-15 rifle with a barrel length of less than 16 inches. Police tried to conduct a traffic stop on the black Range Rover Franklin was driving after the purchase, and Franklin fled. He stopped the car and ran, and police found him hiding in a nearby apartment. They found the short-barreled rifle inside of a towel on the back passenger seat of the Range Rover. They also seized a Glock pistol Franklin left in the apartment where he had been hiding. This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI, California Department of Justice, California Highway Patrol Special Operations Unit, and the Fresno Police Department. Assistant U.S. Attorneys Jeffrey A. Spivak and Kimberly A. Sanchez prosecuted the case.

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According to court documents in the second case, Walker possessed a Jennings pistol and ammunition after having three prior felony convictions for infliction of corporal injury on a spouse or cohabitant. This case is the product of an investigation by the FBI and the Fresno Police Department. Assistant U.S. Attorneys Jeffrey A. Spivak and Ross Pearson are prosecuting the case.

Walker’s sentencing has been set for May 21, 2018, before Judge O’Neill. Walker faces a minimum of 15 years in prison and a maximum of life in prison, and up to 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.

These cases are the product of Project SAFE Neighborhoods investigations. PSN is a nationwide strategy for using existing resources to most effectively combat violent crime in partnership with state, local and tribal law enforcement and the communities we serve.

SACRAMENTO, Calif. — Arsen Muhtarov, 39, of Sacramento, pleaded guilty to today to conspiracy to defraud the United States by filing fraudulent tax returns, U.S. Attorney McGregor W. Scott announced.

According to court documents, Aleksandr Kuzmenko, 34, of Loomis, was a tax preparer at VK Tax Services in Citrus Heights. Muhtarov conspired with Aleksandr Kuzmenko, Petr Kuzmenko, 39, of West Sacramento, and Valeriy Nikitchuk, 45, of Kent, Washington, to defraud the United States. Between February 2009 and November 2009, using stolen identification information and fictitious addresses, they filed approximately 90 fraudulent tax returns with the IRS that claimed the First Time Home Buyer Credits (FTHBC) on behalf of filers who were not entitled to the credit. The resulting fraudulent refunds were electronically deposited into bank accounts that the defendants controlled. The proceeds were then withdrawn and spent. The fraudulent claims totaled approximately $695,724, of which the IRS paid approximately $573,000.

Petr Kuzmenko was sentenced to six and a half years in prison and ordered to pay $573,332 in restitution to the IRS. Aleksandr Kuzmenko was sentenced to over two years in prison, and Valeriy Nikitchuk was sentenced to 10 months in prison.

Muhtarov is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 1, 2018. Muhtarov faces a maximum statutory penalty of 10 years and 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 IRS Criminal Investigation. Assistant U.S. Attorney Michele Beckwith is prosecuting the case.

SACRAMENTO, Calif. — Eduardo Salinas-Garcia, 44, of Sonora, Mexico, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 10 years in prison for conspiring to distribute heroin, U.S. Attorney McGregor W. Scott announced.

According to court documents, Salinas-Garcia led a 2015 conspiracy to distribute heroin in the Redding area. On March 27, 2015, law enforcement officers in Redding pulled over the car in which Salinas-Garcia was riding. They also pulled over the car behind his; that vehicle was being driven by one of Salinas-Garcia’s co-defendants and was carrying about 5.75 pounds of heroin in the trunk. Salinas-Garcia later confessed that he was a U.S. citizen living in Mexico and that he smuggled large quantities of heroin from the Los Angeles area to Redding. Salinas-Garcia said that he had intended to deliver this heroin to a dealer living in Redding. Further investigation showed that, for at least the seven months preceding his arrest, Salinas-Garcia and some of his co-defendants exchanged text messages related to drug trafficking with this dealer. The messages directed the dealer to deposit his drug sale proceeds in specific bank accounts in the United States and in Mexico. Salinas-Garcia personally provided the names of more than 10 banks and accounts to which the dealer should make his deposits.

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Shasta Interagency Narcotics Task Force. Assistant U.S. Attorney Amanda Beck prosecuted the case.

Co-defendants Fernando Acosta, 40, and Jesus Nunez-Meza, 24, both of Perris, pleaded guilty to conspiracy to distribute heroin and were each sentenced to three years and 10 months in prison. Co-defendant Ramon Herrera, 65, of Santa Ana, has pleaded guilty to the same charge and is expected to be sentenced on March 16, 2018.

SACRAMENTO, Calif. — Paul Leland Johnson, 28, of San Jose, was sentenced today to three years and five months in prison for two counts of making false statements to investigators, U.S. Attorney McGregor W. Scott announced.

On May 23, 2017, a jury found that Johnson made false statements that were material in a U.S. Forest Service investigation of a fire that burned Johnson’s Forest Service truck. Johnson, a former Forest Service recreation employee, had checked out his duty truck in February 2012 and driven to a remote location in the Eldorado National Forest. While it was at that location, the Forest Service truck burned in a vehicle fire that spread to the surrounding wild land. Following the fire, Johnson made several statements to law enforcement and arson investigators about his actions in relationship to the fire. At trial, evidence proved beyond a reasonable doubt that some of Johnson’s statements to investigators were willfully false.

This case was the product of an investigation by the United States Forest Service, the U.S. Department of Agriculture Office of Inspector General, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the California Department of Forestry and Fire Protection. Assistant U.S. Attorneys Audrey B. Hemesath and Michael D. Anderson prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned five indictments today against six additional defendants arrested as part of last week’s multi-agency coordinated series of searches and arrests throughout Northern California, U.S. Attorney McGregor W. Scott announced.

• Daisy Gonzalez, 32, of Termo in Lassen County, and Jose Trinidad Heredia Romero, a Mexican national, are charged with conspiracy to manufacture marijuana, the manufacture of marijuana, and possession with intent to distribute methamphetamine. Gonzalez is also charged with unlawful possession of a firearm.
• Asencion Jimenez, 38, of North Highlands, is charged with being a felon in possession of firearms.
• Stefanie Lavan, 65, Woodland, is charged with possession with intent to distribute methamphetamine.
• John Lemus, 31, of Woodland, is charged with being a felon in possession of a firearm;
• Carlos Martinez, 38, of Woodland, is charged with unlawful possession of a firearm, possession with intent to distribute cocaine, and possession of a firearm during and in furtherance of a drug-trafficking offense.
   

These new indictments arise from a multi-agency law enforcement investigation focused on Woodland, but which spread to multiple counties in Northern California and to two additional states. For more information, go to the website for the Eastern District of California.

If convicted, the defendants face statutory penalties of five to 40 years in prison for conspiracy to manufacture marijuana or the manufacture of marijuana and up to a $5 million fine; 10 years to life and up to a $10 million fine for possession with intent to distribute methamphetamine; up to 10 years in prison and a $250,000 fine for being a prohibited person in possession of a firearm; up to 20 years in prison and a $1 million fine for possession with intent to distribute cocaine, and up to five years in prison and a $250,000 fine for possession of firearms during and in furtherance of a drug trafficking crime. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is part of an Organized Crime Drug Enforcement Task 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.

This case is brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.
These cases, and others unveiled in six indictments last week, are the product of an investigation by the FBI, California Department of Corrections and Rehabilitation (CDCR), Yolo County District Attorney, Woodland Police Department, and the California Highway Patrol. The following agencies provided substantial assistance: Colusa County Sheriff’s Office, Sacramento Police Department, Sacramento County Sheriff’s Office, West Sacramento Police Department, Yolo County Sheriff’s Office, Davis Police Department, Yuba City Police Department, Yuba County Sheriff’s Office, Sutter County Sheriff’s Office, Solano County Sheriff’s Office, Vacaville Police Department, the Correctional Intelligence Task Force (CITF), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Postal Inspection Service, and the Drug Enforcement Administration (DEA).  Assistant U.S. Attorneys Owen Roth and Justin L. Lee are prosecuting the cases.

SACRAMENTO, Calif. — Latomba Bishop, 33 of Sacramento, was sentenced today to five years and 10 months in prison for a scheme to obtain mail through fraudulent vacation holds and mail forwarding requests and steal the identities of the mail theft victims, U.S. Attorney McGregor W. Scott announced. In addition, U.S. District Judge Troy L. Nunley ordered Bishop to pay $38,371 in restitution to the victims.

On November 30, 2017, Bishop pleaded guilty to mail fraud and aggravated identity theft in connection with the scheme.

According to court documents, Bishop and her co-defendants Joshua Yadon, 33, and Norman Thompson, 37, both of Sacramento, used stolen personal identifying information to fraudulently obtain credit cards, checks, and merchandise. To avoid detection, the conspirators would often request that the items be mailed to the victims’ real addresses but then would file false vacation holds and change of address forms with the United States Postal Service in order to divert the items into the conspirators’ possession.

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 the thefts of mail and financial crimes committed against the public.”

Thompson pleaded guilty to the conspiracy and on October 5, 2017, was sentenced to three years and 10 months in prison. Yadon also pleaded guilty and is scheduled to be sentenced on April 12, 2018. Yadon 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. Postal Inspection Service with assistance from the Davis Police Department, Sacramento County Probation, and the Woodland Police Department. Assistant U.S. Attorney Jeremy J. Kelley is prosecuting the case.

SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against William Lamar Blessett, 38, of Sacramento, charging him with receipt and possession of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, a search of Blessett’s home revealed child pornography on at least six separate electronic devices, including a laptop, three smart phones, and two tablets.

This case was the product of an investigation 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 Amy Schuller Hitchcock is prosecuting the case.

If convicted, Blessett faces a minimum statutory penalty of 15 years in prison and a maximum penalty of 40 years in prison, as well as 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 formerly licensed physician, Nicholas J. Capos Jr., 67, of Yuba City, was sentenced today by U.S. District Judge Morrison C. England Jr. to four years and four months in prison for selling prescriptions of controlled substances such as oxycodone and methadone, U.S. Attorney McGregor W. Scott announced.

“By prescribing medications to patients he never physically examined in amounts clearly intended for abuse and resale, Capos injected potent and potentially lethal drugs into the community, putting lives at risk,” said U.S. Attorney Scott. “The U.S. Attorney’s Office is committed to doing its part to combat the nation’s opioid crisis by devoting resources to cases like this and working with our law enforcement partners to end the unlawful distribution of these dangerous drugs.” 

“The public should have confidence that practicing physicians will adhere to the do‑no‑harm principle. Nicholas Capos did just the opposite when he prescribed oxycodone without legitimate medical purpose and outside the usual course of practice. This type of reckless behavior provides fuel to the fire of the opioid epidemic plaguing our nation,” stated DEA Special Agent in Charge John J. Martin.

According to court documents, between April 3, 2008, and October 30, 2012, Capos, who was then a licensed physician with a specialty in cardiology, knowingly and intentionally prescribed controlled substances without properly examining the patients and ignoring obvious signs that the patients were abusing or reselling the medications. He prescribed quantities far in excess of human tolerance and charged patients a “DEA Fee” of $100 per prescription, which is contrary to accepted medical practice. He is no longer licensed to practice medicine.

On May 5, 2016, Capos pleaded guilty to distribution and dispensation of oxycodone. According to the plea agreement, Capos prescribed 2,640 APAP/Hydrocodone 325/10 pills in 28 days for one patient (325 mg acetaminophen and 10 mg hydrocodone). At that rate, the patient

SACRAMENTO, Calif. — David Guevara-Pimentel, 24, of Elk Grove, was sentenced today to 10 years in prison for dealing firearms without a license, illegal possession of a machine gun, and distribution of methamphetamine, U.S. Attorney McGregor W. Scott announced.

According to court documents, between August 11, 2014, and April 29, 2015, on 19 separate occasions Guevara-Pimentel met with an undercover agent and sold him a variety of firearms, including a short-barreled shotgun, an unserialized AR-15-style rifle, and handguns. On many of these occasions, Guevara-Pimentel sold the agent methamphetamine, cocaine, or heroin. In all, Guevara-Pimentel sold the undercover agent 49 firearms, many of which lacked a serial number or other identifying markings. When he was arrested in January 2016, Guevara-Pimentel possessed a fully automatic machine gun.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Sacramento Police Department, and the Woodland Police Department. 

SACRAMENTO, Calif. —Denna Chambers, aka Denna Rice, 35, of Fairfield, pleaded guilty today to one count of conspiring to defraud the United States, United States Attorney McGregor Scott announced. Co-defendant, Starsheka Mixon, 34, of Pinole, previously pleaded guilty to the same charge on February 8, 2018. 

“The harm caused by these defendants goes beyond simply cheating the government,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Stealing identities and filing false tax returns is a serious crime that has a devastating impact on the victims whose identities they stole to perpetrate this crime. CI will continue to investigate these crimes and hold those responsible fully accountable.”

According to court documents, between approximately January 2011 and June 2013, Chambers and Mixon 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, 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 were paid out by the IRS.

This case was the product of an investigation by IRS Criminal Investigation. Assistant United States Attorney Shelley D. Weger is prosecuting the case.

Chambers and Mixon are scheduled to be sentenced by Judge Morrison C. England, Jr. on May 24, 2018. Both Chambers and Mixon face a maximum statutory penalty of 10 years in prison, restitution, and a fine of $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

The continued effort by the IRS to combat identity theft and refund fraud has led to steep declines in tax-related identity theft.  The IRS, state tax agencies, and the tax industry have started their third filing season working as the Security Summit, a private-public sector partnership formed in 2015 to combat identity theft. Summit partners have put in place multiple behind-the-scenes safeguards that are helping protect the nation’s taxpayers.  Because the IRS and Summit partners have stepped up efforts to stop suspected fraudulent returns from entering tax processing systems, there continues to be a substantial decline in the number of taxpayers reporting that they are victims of identity theft.  In 2017, the IRS received 242,000 reports from taxpayers compared to 401,000 in 2016 and 677,000 victim reports in 2015. Overall, the number of identity theft victims has fallen nearly 65 percent between 2015 and 2017.

These efforts go hand-in-hand with the work done by IRS Criminal Investigation, where special agents continue working to bring identity thieves to justice across the nation.

SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Stockton residents Arturo Napoles, 29; Raymond Morin, 31; and Raul Diaz, 23, charging them with unlawful dealing in firearms, U.S. Attorney McGregor W. Scott announced. Napoles was also charged with 19 counts of being a felon in possession of a firearm, five counts of possession of a machinegun, two counts of distribution of methamphetamine, and one count of distribution of cocaine.

U.S. Attorney McGregor W. Scott said, “The illegal manufacture and trafficking of firearms poses a serious threat to our communities. Because of this threat, the U.S. Attorney’s Office has prioritized the prosecution of these crimes, and through our partnership with the ATF and local law enforcement, we have managed to seize large amounts of contraband weapons and to bring those who inject them into the community to justice. We are committed to keeping our communities safe by continuing these partnerships and focusing on cases like the one indicted today.”

“At ATF we are committed to making all our communities a safe place,” said Special Agent in Charge Jill Snyder, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives. “Firearms trafficking is a dangerous activity. It results in guns ending up in the hands of criminals and gang members who engage in criminal activity regardless of whether that endangers lives. It only takes one round from one gun to end a life. Our efforts to combat gun related crime has spanned across the district. From 2016 to 2018, ATF agents seized 1,890 firearms within Stockton, Fresno and Sacramento areas. That is 1,890 that were involved in criminal activity and are now off the streets of our community.”

Stockton Police Chief Eric Jones stated: “The results of this investigation made Stockton a safer community. I’m committed to these types of operations and investigations with our Federal law enforcement partners because getting gang members, violent criminals, weapons, and narcotics off our streets is an on-going process to make Stockton the best it can be.”

According to court documents, between April 27, 2017, and February 1, 2018, Napoles allegedly sold approximately 50 firearms, including machine guns, stolen firearms, firearms with obliterated serial numbers, and assault rifles manufactured from unfinished lower receivers with no serial numbers. At the time of his arrest, he possessed one handgun, eight machineguns, and five machine gun-conversion devices. Napoles is prohibited from possessing firearms and is not licensed to deal in firearms.

Between April 27, 2017, and November 29, 2017, Diaz allegedly manufactured and sold approximately 15 assault rifles. He manufactured the firearms in his garage from unfinished lower receivers. Diaz is not licensed to manufacture and deal in firearms.

Between June 1, 2017, and January 4, 2018, Morin allegedly sold eight firearms, including five assault rifles manufactured from unfinished lower receivers with no serial numbers. Morin is not licensed to deal in firearms.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Stockton Police Department. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.

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

The following are summaries of some of the recent cases brought by the U.S. Attorney’s Office involving the illegal sale of firearms: 

On January 25, 2018, a grand jury indicted James Bowen with engaging in the business of dealing firearms without a license, possession of an unregistered firearm, and being a felon in possession of a firearm.  The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.  1:18-CR-0015-DAD

On December 12, 2017, Sharrod Gibbons was sentenced to over two years in prison for unlawful dealing in firearms.  2:15-CR-00158-JAM

On September 20, 2017, Jason Prom was sentenced to twelve years in prison for conspiring to deal firearms without a license, dealing firearms without a license, and being a felon in possession of a firearm.  2:16-CR-134-KJM

On September 8, 2017, Joseph Latu was sentenced to nine years in prison for unlawful dealing in firearms. 2:15-CR-00209-GEB

On September 7, 2017, Christopher Gonzales, Jake Phillip Jines, and Samuel Elijahsidney Scott were indicted for dealing firearms without a license. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.  2:17-CR-162-TLN.

On July 14, 2017, Charles Tucker was sentenced to five years in prison for unlawful dealing in firearms.  2:15-CR-00209-GEB

On May 25, 2017, a grand jury indicted Robert Guthrie, Prado Andres Corona, Marcos Hernandez, Joseph Quirarte and Orasio Fierro for conspiracy to engage in the business of dealing firearms without a license and other charges. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.                         1:17-CR-00135-LJO

On March 28, 2017, Alphonso Harris was sentenced to ten months in prison for unlawful dealing in firearms. 2:16-CR-00011-JAM

On December 9, 2016, Emiliano Cortez-Garcia, was sentenced to six years in prison for unlawful dealing in firearms, possession of a machinegun, and possession of an unregistered firearm. 2:13-CR-00353-GEB

On August 24, 2016, Felix Saldivar was sentenced to over four years in prison for unlawful dealing in firearms.  2:16-CR-00109-KJM

On May 2, 2016, Gerardo Barraza was sentenced to almost two years in prison for unlawful dealing in firearms. 2:14-CR-00040-WBS

On March 10, 2016, James Malcolm was sentenced to five years in prison for unlawful possession of a toxin, unlawful dealing in firearms, possession of a machinegun.                   2:14-CR-00158-TLN

On February 17, 2016, Daniel aka “Dr. Death” Crowninshield was sentenced to nearly three and a half years in prison for unlawful dealing in firearms and possession of an unregistered machinegun.  2:14-CR-00164-TLN

On February 17, 2016, Brandon Johnson was sentenced to ten years in prison for selling firearms without a license and distributing methamphetamine.  2:13-CR-036- KJM

This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.

SACRAMENTO, Calif. —Ricky Lee Richardson, Jr., 41, of Stockton, pleaded guilty today to sex trafficking of a child, United States Attorney McGregor W. Scott announced. 

According to court documents, in November 2011, Richardson recruited a minor victim to engage in prostitution. Between December 2011 and March 2012, Richardson caused the then 16-year-old victim to engage in prostitution in Stockton and elsewhere in Northern California. Richardson arranged for photos to be taken of the victim and he posted prostitution advertisements on the internet that contained nude photos of the victim. Richardson drove the victim to motels and gave her false identification cards that she used to rent rooms for the prostitution activity. Richardson took the money that the victim obtained from that activity.

This case was the product of an investigation by the Federal Bureau of Investigation, with assistance from the Stockton Police Department. Assistant United States Attorneys Brian A. Fogerty and Jill M. Thomas are prosecuting the case.

Richardson has been in custody since his arrest in April 2016.

Richardson is scheduled to be sentenced by Judge Troy L. Nunley on May 17, 2018. Richardson faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

SACRAMENTO, Calif. —Jason E. Mininger, 50, of Folsom, pleaded guilty today to wire fraud and money laundering, United States Attorney McGregor W. Scott announced. 

According to court documents, Mininger was an investment broker and advisor in Folsom. Beginning in January 2014, and continuing until May 2017, Mininger misrepresented to his clients that he needed to use their previously invested funds as part of a new series of investments to be made or managed by Mininger. In truth, Mininger, after depositing the clients’ funds into his own bank account, used the investors’ money on his personal expenses. Mininger caused at least $870,000 in losses to his clients. Mininger also created false investment account statements to conceal his embezzlement of his clients’ funds.

This case was the product of an investigation by the Federal Bureau of Investigation and Internal Revenue Services-Criminal Investigations. Assistant United States Attorney Todd A. Pickles is prosecuting the case.

Mininger is scheduled to be sentenced by Judge Troy L. Nunley on May 31, 2018. Mininger faces a maximum statutory penalty of 20 years in prison on the wire fraud count and 10 years in prison on the money laundering charge. He also faces a fine or $250,000 or twice the gross loss or gross 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. — Today U.S. Attorney McGregor W. Scott announced the arrest of 18 federal defendants on narcotics and weapons-related charges as part of a multi-agency law enforcement investigation into coordinated criminal activity in Woodland, California. The U.S. Attorney was joined in announcing the results of the operation by FBI Special Agent in Charge Sean Ragan, California Department of Corrections and Rehabilitation Secretary Scott Kernan, Woodland Chief of Police Luis Soler, Yolo County District Attorney Jeff Reisig, and Yolo County Sheriff Ed Prieto.

Early this morning, a coalition of local, state and federal law enforcement officers conducted 69 searches pursuant to federal warrants and parole or probation search conditions at various locations throughout Northern California. Officers arrested 18 individuals on charges alleged in six separate federal indictments and one federal criminal complaints that were unsealed today. Three additional, related criminal complaints were filed this week, one in the Eastern District of California, one in the Western District of Pennsylvania, and one in the District of Oregon.  In addition, local officials arrested more than 10 additional individuals on state charges as part of the operation. The investigation, led by the FBI, the California Department of Corrections and Rehabilitation, and the Woodland Police Department, focused on coordinated criminal activity that centered in Yolo County but extended to other Northern California counties and prisons. 

Beginning in the spring of 2016, this investigation uncovered organized criminal activity in Woodland, California with ties to criminal organizations located in California’s jail and prison system. Although centered in Yolo County, the investigation revealed that at least 9 other California counties were negatively impacted by these criminal organizatons: Sacramento, Sutter, Colusa, Yuba, Del Norte, Solano, Fresno, Santa Clara, and Siskiyou. 

The investigation focused on intercepting communications of those involved in drug and firearms offenses – including cellphone communications, social media communications on Facebook and Instagram, and clandestine communications on Snapchat and other platforms. In several instances, these modes of communication were used to sell weapons and coordinate the sales of cocaine, methamphetamine, and prescription drugs. In some instances, it is alleged that prison inmates directed defendants outside the prisons to smuggle drugs into the prison or to sell and distribute narcotics outside the prison.

U.S. Attorney McGregor W. Scott stated, “Today’s operation is the result of a months-long endeavor involving federal, state, and local law enforcement agencies to disrupt coordinated criminal activity that, although centered in Yolo County, spread to several other Northern California counties. This operation demonstrates how federal law enforcement can join forces with our state and local partners to make our communities safer and stop illegal guns and drugs from flooding our streets.”

“The FBI is committed to joining forces with our state and local partners to effectively combat the gang and drug-related violence that plagues our communities,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Our shared goal is stopping gang violence, getting drugs and weapons off the streets, and helping to bring justice to the victims of crimes committed in our communities. Today’s arrests demonstrate the strength of successful law enforcement collaboration and highlight our shared commitment to the public we serve.”

 “Our department is committed to putting a stop to illegal activities conducted by prison gangs in our neighborhoods, schools and communities to further their criminal organizations and instill fear in people,” said Secretary Scott Kernan, California Department of Corrections and Rehabilitation. “The success of this investigation demonstrates how effective our partnerships are with local, state, and federal agencies. When we work together, we effectively are able to target dangerous individuals in and out of prison. I am thankful and proud of the hard work that went into this operation.”

 “Over the last several years, many of the defendants who were arrested today and their associates have plagued Yolo County with their criminal activity.  This operation has helped to disable their organization at its most basic level and will hopefully have positive long term impacts on public safety,” said Yolo County District Attorney Jeff Reisig.

Operation Silent Night is the product of an investigation by the FBI, California Department of Corrections and Rehabilitation (CDCR), Yolo County District Attorney, Woodland Police Department, and the California Highway Patrol. The following agencies provided substantial assistance: Colusa County Sheriff’s Office, Sacramento Police Department, Sacramento County Sheriff’s Office, West Sacramento Police Department, Yolo County Sheriff’s Office, Davis Police Department, Yuba City Police Department, Yuba County Sheriff’s Office, Sutter County Sheriff’s Office, Solano County Sheriff’s Office, Vacaville Police Department, the Correctional Intelligence Task Force (CITF), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Postal Inspection Service, and the Drug Enforcement Administration (DEA).  Assistant U.S. Attorneys Owen Roth and Justin L. Lee are prosecuting the cases.

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

•      Aldo Arellano, 24, of Marysville, is charged with distribution of methamphetamine.

•      Raul Barajas, 21, of Woodland, is charged with conspiracy to possess with intent to distribute and to distribute controlled substances, and possession with intent to distribute methamphetamine.

•      Patrick Botello, 31, of Pelican Bay State Prison, is charged with conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and using a cellphone to facilitate a drug trafficking offense.

•      Israel Covarrubias, 25, of Woodland, is charged with conspiracy to possess with intent to distribute and to distribute controlled substances after having been convicted of a felony drug offense, possession with intent to distribute methamphetamine, distribution of methamphetamine, and using a cellphone to facilitate a drug trafficking offense.

•      Milton Escobedo, 28, of Woodland, is charged with conspiracy to possess with intent to distribute and to distribute controlled substances, distribution of cocaine, and using a cellphone to facilitate a drug trafficking offense.

•      Rachel Felix, 38, of Woodland, is charged with distribution of methamphetamine.

•      Ashley Habash, 28, of Marysville, is charged with conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and using a cellphone to facilitate a drug trafficking offense.

•      Edgar Jimenez, 19, of Sacramento, is charged with distribution of cocaine and using a cellphone to facilitate a drug trafficking offense.

•      Justin Johnson, 33, of Sacramento, is charged with possession with intent to distribute methamphetamine and being a felon in possession of a firearm.

•      Jose Madrigal-Vega, 31, Woodland, is charged with conspiracy to possess with intent to distribute and to distribute controlled substances, and distribution of methamphetamine.

•      Victor Magana, 24, of Woodland, is charged with conspiracy to possess with intent to distribute and to distribute controlled substances, possession with intent to distribute methamphetamine, distribution of methamphetamine, distribution of cocaine, and using a cellphone to facilitate a drug trafficking offense.

•      James Masterson, 28, of Newcastle, is charged with using a cellphone to facilitate a drug trafficking offense.

•      Brenda Miranda, 21, of Napa, is charged with conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and using a cellphone to facilitate a drug trafficking offense.

•      Reginald Pajimola, 23, of Marysville, is charged with possession with intent to distribute cocaine and using a cellphone to facilitate a drug trafficking offense.

•      Mercedez Silva-Sims, 21, of Colusa, is charged with conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin and using a cellphone to facilitate a drug trafficking offense.

•      Joshua Sims, 24, of Colusa, is charged with conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin, attempted distribution of methamphetamine, using a cellphone to facilitate a drug trafficking offense, and distribution of cocaine.

•      Erica Umbay, 42, of Woodland, is charged with being a felon in possession of a firearm.

•      Ricardo Villa, 39, of Pelican Bay State Prison, is charged with conspiracy to possess with intent to distribute and to distribute methamphetamine and heroin, and using a cellphone to facilitate a drug trafficking offense.

•      Trevor White, 27, of Sacramento, is charged with conspiracy to possess with intent to distribute and to distribute controlled substances and distribution of methamphetamine.

Two additional defendants are being charged in the District of Oregon and the Western District of Pennsylvania. The Yolo County District Attorney’s Office and the U.S. Attorney’s Office continue to review possible charges against additional potential defendants.

This case is 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.

This case is brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders.

SACRAMENTO, Calif. — On February 10, 2018, Jamal Shehadeh, 59, of Sacramento, pleaded guilty to two counts of arson to commit a felony in furtherance of a long-running arson and insurance fraud scheme and was sentenced by U.S. District Judge Morrison C. England Jr. to 30 years in prison, U.S. Attorney McGregor W. Scott announced.

“Jamal Shehadeh avoided prosecution for decades as he set fire after fire with complete disregard for the lives of anyone nearby including firefighters,” U.S. Attorney Scott stated. “Shehadeh’s time committing the violent crime of arson and insurance fraud for the purpose of enriching himself has come to an end thanks to the hard work of all the federal law enforcement agencies that investigated and assisted with this case, and the local Sacramento authorities who provided tremendous assistance.”

“Jamal Shehadeh intentionally set fires, which threatened the lives and safety of our community members. The FBI is proud to have partnered with the Sacramento Fire Department, Sacramento Metropolitan Fire District, and our federal partners to investigate the allegations against Shehadeh to ensure justice was served,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The length of Shehadeh’s sentence highlights the seriousness of his admitted crimes and ensures he will not pose a threat to the community for decades.”

“Jamal Shehadeh was a serial arsonist who profited over and over again while concealing those profits through nominees and other means,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “The scheme netted Shehadeh and his co-defendants over $1.5 million in insurance proceeds while endangering members of the community. Those who line their pockets with profits from these schemes should know that IRS Criminal Investigation will continue to use our financial investigative expertise and work with our great law enforcement partners to bring them to justice.”

According to court documents, from at least December 2009 through September 2013, Jamal Shehadeh participated in an arson fraud scheme with co-defendants Saber Shehadeh and Brian Stone and others. The scheme involved seven fires at six different commercial building locations in Sacramento and Carmichael. The dates and locations of the fires, and the names of businesses at those locations, are as follows:

• 1007 E Street and 427 10th St., Sacramento — December 27, 2009
• George’s Auto Care, 511 Broadway, Sacramento — June 9, 2010
• Tru Value Market, 427 10th St., Sacramento — August 15, 2010
• Galaxy Sacramento, 6964 65th St., Sacramento — April 23, 2012
• Escape Therapy, 5725 Marconi Avenue, Carmichael — September 24, 2012
• Cobblestone Café, 910 University Avenue, Sacramento — October 15, 2012
• Golden Star Auto Supply, LLC, 2764 Fulton Avenue, Sacramento — June 16, 2013
   
  Jamal Shehadeh pleaded guilty to setting or causing to be set the fires at 910 University Avenue on October 15, 2012, and the fire at 2764 Fulton Avenue on June 16, 2013, for the purpose of carrying out insurance fraud. He also admitted to setting or causing to be set the fire on December 27, 2009, at 10th and E Streets in Sacramento, and the fire at 6964 65th Street in Sacramento on April 23, 2012, as a part of the arson and insurance fraud scheme.
  According to court documents, the scheme involved numerous forms of fraud, including false statements when acquiring insurance policies, causing damage by fire, and seeking funds from insurance companies using false statements about the cause of the fires, the property and tenant improvements purported to have been damaged in the fire, lost business income resulting from the fires, and the true nature of the entities involved in the demolition and clean-up, as well as the actual clean-up costs. In some cases, the participants used a company named Wolf & Associates Construction Inc. to pursue insurance claims for demolition and cleanup costs while concealing their relation to it, or used Wolf Construction as a front company purporting to do cleanup that was in fact performed by someone else. Jamal Shehadeh meanwhile controlled a bank account associated with Wolf Construction.
  This case is the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Sacramento Fire Department; the Sacramento Metropolitan Fire Department; and the Sacramento Sheriff’s Department. Assistant U.S. Attorney Michael D. Anderson and Christopher S. Hales prosecuted the case.
  Defendant Jamal Shehadeh is in custody. Co-defendants Saber Shehadeh and Brian Stone are pending trial. The charges against Saber Shehadeh and Brian Stone are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Timothy Ortiz, 47, of Waukegan, Illinois, was sentenced today to three years in prison for conspiring to ship misbranded synthetic drugs in interstate commerce with intent to defraud , U.S. Attorney McGregor W. Scott announced.

On August 14, 2017, Ortiz pleaded guilty. According to court documents, from December 2011 to October 2013, he, along with his co-defendants, Douglas Jason Way, 44, of Evanston, Illinois: Timothy New, 35, of Pensacola, Florida; and Natalie Middleton, 32, of Clovis, California, were involved in the importation of chemicals from China that were substantially similar in structure and pharmacological effect to a Schedule I controlled substance. Ortiz and his associates then diluted the chemicals with acetone and mixed it with dried plant material to produce a smokeable synthetic drug commonly known on the street as “spice.”  The drugs were packaged and falsely labeled to say that the contents were legal and were not intended for human consumption, when in fact they were illegal and were intended for human consumption.

Ortiz and his associates then shipped the drug from warehouses in Pensacola, Florida and Millbrae and Stockton, California to smoke shops, gas stations, and retail outlets throughout the United States. Ortiz, utilizing an alias of Michael Fitton, set up and managed the Millbrae processing lab after the synthetic drug company was purchased by the owner of multiple smoke shops in the Central Valley operating under the name of The Stuffed Pipe that sold the synthetic drugs.

According to the plea agreement, Ortiz and his co-defendants shipped at least 24 tons of misbranded smokeable synthetic cannabinoids that contained the synthetic drugs AM-2201 and XLR11 to smoke shops and retail outlets throughout the United States. They generated in excess of $33 million in sales. At the time of the illicit enterprise, AM-2201 was a schedule I controlled substance and XLR11 was a controlled substance analogue that was placed under schedule I as a controlled substance in May 2013.  In sentencing Ortiz, District Judge Dale A. Drozd also ordered Ortiz to forfeit $109,590, which Ortiz had derived from his four-month participation in the illegal operation.

This case is the product of an investigation by the Drug Enforcement Administration, Internal Revenue Service Criminal Investigation, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Food and Drug Administration and Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting 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. As a result of this investigation, law enforcement agencies seized and forfeited over $6.6 million representing drug proceeds.

Co-defendant New previously entered a guilty plea to the fraudulent shipment of misbranded drugs and is currently serving a 30-month sentence. Middleton previously entered a guilty plea to money laundering, was sentenced to four months in prison, and is currently under supervised release for two years. Way has requested a jury trial, which is set for June 16, 2018. Way is charged with multiple controlled substance offenses, in addition to the misbranding charge, and faces a maximum penalty of 20 years in prison and a fine of $10 million. The charges against him are only allegations; Way is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal jury found Donnie Phillips, 64, of Concord, and Gordon Miller, 60, of Clayton, guilty today of multiple methamphetamine-trafficking counts, U.S. Attorney McGregor W. Scott announced.

After a five-day trial, Phillips and Miller were found guilty of conspiracy to distribute methamphetamine. Phillips was also found guilty of eight counts of distribution and two counts of possession with intent to distribute methamphetamine. Miller was found guilty of two counts of distribution and two counts of possession with intent to distribute methamphetamine.

According to trial evidence, between June 2014 and February 2015, Phillips and Miller supplied methamphetamine to co-defendant Phyliss Mosher, 51, of Vallejo, who supplied it to an undercover agent. The drug deals took place in the counties of Solano, Contra Costa, Yolo, Shasta, and San Joaquin. On January 25, 2018, Mosher was sentenced to 15 years in prison after pleading guilty to the methamphetamine conspiracy on May 9, 2017.

This case is the product of an investigation by the Drug Enforcement Administration, El Dorado County Sheriff’s Office, the El Dorado County District Attorney’s Office, the California Highway Patrol, the Vallejo Police Department, and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Jason Hitt and Jill Thomas are prosecuting the case.

Phillips and Miller are scheduled to be sentenced on May 15, 2018, by U.S. District Judge John A. Mendez. Each defendant faces a mandatory minimum of 20 years in prison, a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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.

SACRAMENTO, Calif. — Lee Loomis, aka Lawrence Leland Loomis, 60, of Granite Bay, was sentenced today by U.S. District Judge John A. Mendez to 12 years in prison for schemes that caused millions of dollars in losses to more than 183 investors, U.S. Attorney McGregor W. Scott announced.

On January 29, 2016, Loomis pleaded guilty to wire fraud. According to court documents, from 2006 through 2008, Loomis was president of Loomis Wealth Solutions, a business operating in California, Illinois, Washington and elsewhere. Through seminars and face-to-face meetings, he induced individuals to invest money in the Naras Funds, which he claimed were liquid savings account-like investments that yielded a 12 percent annual return. He also claimed the investment was secured by a third party that was using the money to make loans secured by residential properties.

In fact, Loomis and his co‑defendants used the funds to pay for ongoing business expenses and to pay previous investors. Loomis took in more than $10 million in investor funds as part of the Naras scheme. He also took in money through other means, including a mortgage fraud scheme. At the time law enforcement executed search warrants at the business, only $4,313 was left in investor accounts.

“Loomis Wealth Solutions was built on a foundation of lies and deceit,” stated U.S. Attorney McGregor W. Scott. “The sentence imposed today helps to ensure that Loomis won’t again be in a position to cause financial harm to others, and represents some measure of justice for the many victims who were lured into trusting Loomis with their hard-earned money.”

 “The FBI is committed to working with its partners to ensure people who defraud the American people—often devastating their financial future in the process—face justice,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Dozens of investors who trusted Lee Loomis suffered significant financial losses. Many of these victims withdrew funds from retirement accounts accrued over the course of decades, forcing then to restart the process of preparing for retirement.”

“Lee Loomis was the leader and architect of a scheme that resulted in millions of dollars of losses to dozens of families,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “He lied to investors, stole their hard earned savings and spent it within months of receipt. His conduct led to ruined credit and home foreclosures. While this sentence cannot reverse the damage caused by Loomis and his co-defendants, it highlights the ongoing commitment of IRS-CI to hold accountable those involved in these types of crimes.”

This case was the product of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation, the United States Securities and Exchange Commission, and the California Bureau of Real Estate. Assistant U.S. Attorneys Paul Hemesath and Jared Dolan prosecuted the case.

Loomis has been in custody since September 14, 2012. Co-defendants John Hagener, 79, of Granite Bay; Joseph Gekko, 47, of Yorba Linda; Dawn C. Powers, 45, of Lincoln; and Peter Woodard, 47, of Ventura, have previously pleaded guilty and are scheduled to be sentenced on March 13, 2018.

FRESNO, Calif. — Marie E. Sherrill, 57, of Porterville, was sentenced today by U.S. District Judge Dale A. Drozd to four years in prison for wire fraud and tax fraud, U.S. Attorney McGregor W. Scott announced. She was also ordered to pay more than $1.3 million in restitution to the fraud victims and $255,900 to the IRS.

According to court documents, Sherrill was a registered tax return preparer operating a bookkeeping and tax preparation business in Porterville under the name Sherrill Financial Services. Between January 2011 and December 2014, Sherrill prepared false tax returns for her clients containing false deductions to maximize their tax refunds, which caused a loss to the IRS of approximately $255,900.

Sherrill also used the intimate financial knowledge she gained from the clients of her bookkeeping and tax preparation business to identify victims she could lure into an investment fraud scheme. She told victims of this scheme that their money would be put into “pooled investments” with the money of other investors to earn a high rate of return. The money was, in fact, never put into any investment, but was used instead to pay Sherrill’s personal expenses or to make lulling payments to earlier investors in order to make them believe their money was earning a profit. As a result of this scheme, the victims were defrauded of at least $1.3 million.

This case was the product of an investigation by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Mark J. McKeon is prosecuting the case.

FRESNO, Calif. — James Gonzales-Gay, 35, of Sanger, was sentenced today by Chief U.S. District Judge Lawrence J. O'Neill to 12 years and six months in prison for assaulting a mail carrier with the intent to commit robbery, and being a felon in possession of a firearm, U.S. Attorney McGregor W. Scott announced.

According to court documents, on September 15, 2017, a mail carrier delivering mail in the area of Maple and Huntington, in Fresno, felt someone jump onto the bumper of his mail delivery truck. Gonzales-Gay appeared at the driver’s door, pulled the mail carrier from the truck, and began driving it away. After Gonzales-Gay drove the mail truck a short distance, the carrier was able to catch up to the truck and disable it. Gonzales-Gay elbowed the mail carrier in the face while struggling over control of the vehicle. After taking the keys from the ignition, the carrier was able to escape. Gonzales-Gay was soon thereafter stopped by law enforcement officers, who found parts of a Taurus handgun on Gonzales-Gay’s person. Gonzales-Gay is prohibited by law from possessing a firearm.

This case was the product of an investigation by the U.S. Postal Inspection Service and the Fresno Police Department. Assistant U.S. Attorney Laurel J. Montoya prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Jason Solomon, 42, of Stockton, charging him with distribution of child pornography and possession of child pornography, U.S. Attorney McGregor W. Scott announced.

According to court documents, in July 2016, Solomon distributed images of children engaged in sexually explicit conduct. On January 9, 2018, Solomon also possessed a video depicting a child engaged in sexually explicit conduct. Solomon has been in custody since his arrest on January 9, 2018.

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

If convicted of distribution of child pornography, Solomon faces a mandatory minimum sentence of five years in prison and a maximum statutory penalty of 20 years in prison and a $250,000 fine. The possession of child pornography count carries a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case 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. — After an eight-day trial, a federal jury found Steel A. Davis, 45, of Chico, guilty today of all eight counts of wire fraud in a scheme to obtain bonuses for referring individuals to enlist in the California National Guard, U.S. Attorney McGregor W. Scott announced.

According to court documents and evidence presented at trial, the United States Army contracted with a company called Document and Packaging Broker Inc. (DOCUPAK) to administer the Guard Recruiting Assistance Program (G-RAP). Under G-RAP, members of the California National Guard served as Recruiting Assistants. If a Recruiting Assistant referred a potential Guard member to a recruiting office and that person ultimately enlisted, the Recruiting Assistant was eligible to receive a $1,000 payment when a person enlisted and a second $1,000 payment when the recruit left for boot camp.

According to court documents and evidence presented at trial, Davis was a recruiter with the California National Guard and was ineligible to participate in the G-RAP program. Davis, however, realizing the potential to make money through G-RAP, gave recruits’ information to his co‑conspirators who had signed up to be Recruiting Assistants. The RAs would then file false claims with DOCUPAK that they had referred the recruits to join the Guard when, in fact, the recruits had joined on their own initiative. When the compensation was received, Davis split the proceeds of the fraud with the Recruiting Assistants.

This case is the product of an investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew G. Morris and Katherine T. Lydon prosecuting the case.

Davis is scheduled to be sentenced on May 10, 2018, before U.S. District Judge Troy L. Nunley. Davis faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Other National Guard members and recruiters have been charged in similar schemes in the Eastern District of California. The following defendants have been convicted:

• 2:14-cr-153 TLN — Brian Kaps, 44, of Chico, pleaded guilty on November 21, 2014, to one count of wire fraud. He is scheduled to be sentenced on February 22, 2018.
• 2:14-cr-152 TLN — Sarah Nattress, 30, of Paradise, pleaded guilty on October 23, 2014, to one count of wire fraud. She is scheduled to be sentenced on February 22, 2018.
• 1:14-cr-107 DAD — Leonardo Pesta, 49, of Mountain View, pleaded guilty on July 27, 2015, to one count of wire fraud and was sentenced to two years of probation.
• 1:14-cr-108-LJO — Nicholas Huerta, 36, of Fresno, pleaded guilty on September 14, 2015, to one count of wire fraud and was sentenced to four years of probation.
• 2:14-cr-151 JAM — Richard C. Sihner, 55, of Elk Grove, was convicted on January 22, 2016, of 18 counts of wire fraud and one count of making false statements following a seven-day jury trial and was sentenced to 30 months in prison.
• 1:14-cr-106 DAD — Joaquin Cuenca, 40, of San Diego, was convicted on February 1, 2016, of three counts of wire fraud and one count of making false statements following a seven-day jury trial. He was sentenced to six months in prison.
• 1:14-cr-109-LJO — Jimmy D. Maldonado, 37, and Mayra L. Maldonado, 31, both of Fresno, were each convicted by a jury on January 29, 2018, of three counts of wire fraud after a four-day trial. They are scheduled to be sentenced on April 23, 2018.
• 2:18-cr-12 TLN — Jason M. Hair, of Paradise, pleaded guilty on January 18, 2018, to one count of wire fraud and one count of making false statements. He is scheduled to be sentenced on April 12, 2018.

SACRAMENTO, Calif. — A claims representative for the Social Security Administration in Sacramento, was found guilty today in federal court for conspiring to commit immigration fraud and falsifying government records, U.S. Attorney McGregor W. Scott announced.

After four days of trial, a jury convicted Nelli Kesoyan, 45, of Rancho Cordova, of one count of conspiring to make false statements in a matter related to naturalization and citizenship and to obstruct, impede, or influence a pending agency proceeding, and one count of falsifying government records. The trial was held before U.S. District Judge Garland E. Burrell Jr.

According to evidence presented at trial, in January 2014, Kesoyan conspired with others to make false statements in Vanik Movsesyan’s application for naturalization, submitted to U.S. Citizenship and Immigration Services (USCIS). Kesoyan’s co-conspirators included her husband, Grigor Kesoyan and Movsesyan, both of whom pleaded guilty for their roles in the conspiracy.

Kesoyan and her co-conspirators agreed to make false statements under oath to USCIS regarding Movsesyan’s residence. Kesoyan used her position with SSA to repeatedly access Movsesyan’s SSA file and create fraudulent letters to support Movsesyan’s naturalization application. When a USCIS immigration officer continued to question whether Movsesyan actually lived in Sacramento (in fact he lived in Burbank, California), the conspirators began creating and submitting additional false documents to support the lies. Kesoyan again used her job at SSA to, access Movsesyan’s SSA file and create yet another fraudulent letter in September 2014, submitted in support of the lies to USCIS. Kesoyan also had another individual, who could not read or write in English, notarize an affidavit written in English that claimed Movsesyan lived at his house in Sacramento; this affidavit was also submitted to USCIS.

As the evidence at trial showed, Kesoyan engaged in additional misconduct. When USCIS’s Fraud Detection and National Security officers conducted a November 17, 2014, site visit at Movsesyan’s purported Sacramento residence, Kesoyan got on the phone with the actual resident and directed him to lie to USCIS officers. Concerned that the resident was not saying what he was supposed to say, Kesoyan also sent her husband, Grigor Kesoyan, and another individual to the residence to make statements to USCIS officers.

This case is the product of an investigation by the Social Security Administration’s Office of Inspector General, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service Criminal Investigation, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Nirav K. Desai and Jeremy J. Kelley are prosecuting the case.

After the verdict, Kesoyan was taken into custody. Movsesyan and Grigor Kesoyan previously pleaded guilty to the conspiracy. On March 3, 2017, Grigor Kesoyan was sentenced to time served and two years of supervised release.

Nelli Kesoyan and Movsesyan are scheduled to be sentenced by Judge Burrell on April 27, 2018. Kesoyan 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. — Vivian Wang, 54, of Alpharetta, Georgia, pleaded guilty today to wire fraud and aggravated identity theft related to a nationwide casino and credit card scheme, U.S. Attorney McGregor W. Scott announced. 

According to court documents, between August 2008 and August 2014, Wang and co-defendant Frank Luo, 49, of Las Vegas, Nevada, participated in a scheme to defraud casinos and credit card companies across the country. The scheme involved using false identities in the names and Social Security numbers of migrant workers to apply for casino credit called “markers” and to open credit card accounts. A marker is a cash advance provided by a casino to a patron, and it is often secured by a check from the patron’s bank account. Wang and Luo initially timely repaid several markers at different casinos and several credit cards in order to give the impression of creditworthiness to future casinos and credit card companies. Wang and Luo recruited “clients” to participate in the scheme to induce the casinos and credit card companies to part with even more money under fraudulent pretenses.

Wang, and others working with her, coordinated their gambling activity in order to give the appearance of losing money (and thereby encouraging the casinos to issue future markers) when in fact one schemer would “lose” money while another would gain the same. In other instances, one schemer would surreptitiously deliver the issued gambling chips to another in order to give the appearance of having spent them. At the end of the scheme, Wang and her co-schemers did not repay the casino markers or the significant outstanding credit card balances accrued in a short amount of time once creditworthiness had been established. The combined fraud led to over $1.1 million in losses to casinos and credit card companies.

This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice’s Bureau of Gambling Control. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case

Co-defendant Luo pleaded guilty, and on August 23, 2017, he was sentenced to three years in prison. Wang is scheduled to be sentenced by Judge Kimberly J. Mueller on May 16, 2018. Wang faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for wire fraud, and a mandatory minimum of two years in prison and up to a $250,000 fine for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Charges were unsealed today against a government contractor following his arrest in St. Louis, Missouri, for his role in allegedly carrying out a $2.6 million scheme to defraud at least 35 subcontractors located across the United States.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney McGregor W. Scott of the Eastern District of California, Special Agent in Charge David A. House of the Department of Interior Office of Inspector General’s (DOI-OIG) Western Region Office of Investigations, Special Agent in Charge Ray Park of the U.S. Army Criminal Investigation Command’s (Army CID) Pacific Fraud Field Office, Special Agent in Charge Sean Ragan of the FBI’s Sacramento Division, Director Timothy N. Ries of the Air Force Office of Special Investigations’ (Air Force OSI) Office of Procurement Fraud Investigations and Special Agent in Charge Chris Hendrickson of the Defense Criminal Investigative Service’s (DCIS) Western Field Office made the announcement.

Chester L. Neal Jr., 43, of Fresno, California, was charged in an indictment filed in the Eastern District of California with two counts of mail fraud.  Neal will have his initial court appearance later today before Magistrate Judge David D. Noce of the Eastern District of Missouri.

According to the indictment, Neal established and controlled several companies through which he secured at least 105 government contracts to provide various goods and services to federal agencies including the Department of Interior, U.S. Army and U.S. Air Force.  The indictment alleges that Neal subcontracted the work to other vendors who provided all of the goods and services to the contracting federal agencies.  Neal allegedly made several misrepresentations in order to induce the subcontractors to perform the contractually required work.  The indictment further alleges that Neal did not pay his subcontractors even though he was paid by the government for his subcontractors’ work.  Instead, Neal allegedly kept the money for his personal use.  In total, between July 2008 and December 2017, Neal allegedly defrauded his subcontractors out of at least $2.6 million.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

DOI-OIG, Army CID, the FBI, Air Force OSI and DCIS are investigating this matter.  Trial Attorney Kyle Maurer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Grant Rabenn of the Eastern District of California are prosecuting the case.

FRESNO, Calif. — After a four-day trial, a federal jury found Jimmy D. Maldonado, 37, and Mayra L. Maldonado, 31, both of Fresno, guilty of three counts of wire fraud in a scheme to fraudulently obtain payments from a military recruitment program for the California Army National Guard, U.S. Attorney McGregor W. Scott announced.

According to evidence presented at trial, Jimmy Maldonado, a former full-time recruiter for the National Guard in the Fresno area, and his wife Mayra Maldonado, a former member of the Guard, defrauded a military recruiting program out of tens of thousands of dollars. The program, the Guard Recruiting Assistance Program (G-RAP), offered a financial incentive to members of the Guard who, on their own civilian time, recruited new soldiers. Guard members, also called Recruiting Assistants, who successfully recruited new soldiers into the Guard were typically eligible to receive $1,000 when a new solider enlisted and another $1,000 when the solider left for basic training.

Mayra Maldonado participated in the G-RAP program as a Recruiting Assistant. Based on documents and testimony presented at trial, Jimmy Maldonado was a full-time recruiter who was ineligible to participate in G-RAP as a Recruiting Assistant and was therefore forbidden to receive G-RAP incentive payments. However, he provided information about new soldiers to his wife Mayra Maldonado. Mayra Maldonado then used that information to claim G-RAP payments for those soldiers, even though she had never met the soldiers and played no role in their decision to join the Guard. In exchange for Jimmy Maldonado giving her information about new soldiers, Mayra Maldonado, on numerous occasions, shared G-RAP money she received with Jimmy Maldonado.

Jimmy and Mayra Maldonado are scheduled to be sentenced by Chief U.S. District Judge Lawrence J. O’Neill on April, 23, 2018. The Maldonados each face a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of wire fraud. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of factors.

This case is the result of an investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant U.S. Attorney Michael Tierney and Special Assistant U.S. Attorney Jacklin Chou Lem prosecuted the case.

Other National Guard members and recruiters have been charged in similar schemes in the Eastern District of California. The following defendants have been convicted:

• 2:14-cr-153 TLN — Brian Kaps, 44, of Chico, pleaded guilty on November 21, 2014, to one count of wire fraud. He is scheduled to be sentenced on February 22, 2018.
• 2:14-cr-152 TLN — Sarah Nattress, 30, of Paradise, pleaded guilty on October 23, 2014, to one count of wire fraud. She is scheduled to be sentenced on February 22, 2018.
• 1:14-cr-107 DAD — Leonardo Pesta, 49, of Mountain View, pleaded guilty on July 27, 2015, to one count of wire fraud and was sentenced to two years of probation.
• 1:14-cr-108-LJO — Nicholas Huerta, 36, of Fresno, pleaded guilty on September 14, 2015, to one count of wire fraud and was sentenced to four years of probation.
• 2:14-cr-151 JAM — Richard C. Sihner, 55, of Elk Grove, was convicted on January 22, 2016 of 18 counts of wire fraud and one count of making false statements following a seven-day jury trial and was sentenced to 30 months in prison.
• 1:14-cr-106 DAD — Joaquin Cuenca, 40, of San Diego, was convicted on February 1, 2016, of three counts of wire fraud and one count of making false statements following a seven-day jury trial. He was sentenced to six months in prison.

SACRAMENTO, Calif. — Michelle Troung, 34, of Clear Lake, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to six-and-a-half years in prison for conspiracy to launder money, U.S. Attorney McGregor W. Scott announced.

According to court documents, Troung conspired with co-defendants Dustin Wilson and Brandon Roberts to distribute marijuana and cocaine from Sacramento to the Southeastern United States. They also conspired to conceal the proceeds of their drug trafficking through various monetary transactions. On January 13, 2017, Troung pleaded guilty to conspiracy to commit money laundering.

This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation and the Drug Enforcement Administration. Assistant U.S. Attorney Todd A. Pickles prosecuted the case.

Co-defendant Brandon Roberts was sentenced to three years and one month in prison. Co-defendant Dustin Wilson has pleaded guilty and is set for sentencing on February 23, 2018.

FRESNO, Calif. — A federal grand jury returned a six-count indictment Thursday against Johnny Jaramillo, 50, of Hanford, charging him with using interstate facilities (a cellphone) with the intent to commit murder for hire, providing a firearm to a felon, possession of a firearm after being convicted of misdemeanor domestic violence, and possession of an unregistered firearm, U.S. Attorney McGregor W. Scott announced.

 

According to court documents, on December 15, 2017, Jaramillo met with an undercover agent in Selma in order to sell him three firearms. During the sale, Jaramillo asked the undercover agent to kill a person with whom he was involved in a lawsuit. After some discussion of how the murder would take place, the undercover agent told Jaramillo that he would accept firearms as payment for the murder. On January 12, 2018, the agent and Jaramillo exchanged texts and arranged to meet that day. During the meeting, Jaramillo gave the undercover agent a 9mm pistol and ammunition and assured the undercover agent that the firearm could not be traced back to him. He also confirmed that the picture sent in a text was the man he wanted killed. Jaramillo was arrested on January 17, 2018, and is currently detained pending trial. The intended victim is unharmed.

Jaramillo is also alleged to have knowingly sold a firearm to a person who had a prior felony conviction in October 11, 2017. He allegedly possessed an unregistered short-barreled rifle and three pistols. Jaramillo is prohibited from possessing a firearm because of a misdemeanor domestic violence conviction.

This case is part of the PSN (Project Safe Neighborhoods) strategy, a nationwide strategy for using existing resources to most effectively combat violent crime in partnership with state, local and tribal law enforcement and the communities we serve. This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Multi-Agency Gang Enforcement Consortium (MAGEC) whose members come from the Fresno Police Department, the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, the California Highway Patrol, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorneys Ross Pearson and Kimberly A. Sanchez are prosecuting the case.

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

FRESNO, Calif. — A federal grand jury returned a four-count indictment against James Bowen, 39, of Fresno, today charging him with being a felon in possession of a firearm, engaging in the business of dealing firearms without a license, and possession of an unregistered firearm, U.S. Attorney McGregor W. Scott announced.

“The injection of firearms into our communities through illegal sales like the ones charged in today’s indictment pose a serious public safety threat,” said U.S. Attorney Scott. “The U.S. Attorney’s Office will continue to collaborate with our state, local and federal partners to enforce gun laws that keep guns out the hands of criminals.”

“Public safety is at the forefront of ATF’s mission,” said Special Agent in Charge Jill Snyder, ATF, San Francisco Field Division. “It is our duty to make this community a safer place for families. When law enforcement agencies create a unified front against violent crime, operations, like this one, will be successful.”

According to court documents, between February 23, 2017, and January 16, 2018, it is alleged that Bowen was engaged in the business of dealing firearms without a license. On January 16, 2018, a search warrant was issued for Bowen’s residence and 221 firearms were seized: 85 rifles, 35 shotguns, 94 pistols, five suspected silencers, one suspected machine gun, and one full auto sear. Bowen has a prior felony conviction and is prohibited from possessing firearms.

If convicted, Bowen faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for being a felon in possession of a firearm and possessing an unregistered firearm. The maximum statutory penalty for engaging in the business of dealing firearms without a license is five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is part of the PSN (Project Safe Neighborhoods) strategy, a nationwide strategy for using existing resources to most effectively combat violent crime in partnership with state, local and tribal law enforcement and the communities we serve. This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Multi-Agency Gang Enforcement Consortium (MAGEC) whose members come from the Fresno Police Department, the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, the California Highway Patrol, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Kimberly A. Sanchez is prosecuting the case.

 

SACRAMENTO, Calif. — Marcus Buckley, 46, of Weatherford, Texas, was sentenced today by U.S. District Judge Troy L. Nunley to two years in prison and ordered to pay over $1.58 million in restitution, U.S. Attorney McGregor W. Scott announced.

According to court documents, Buckley played professional football in the National Football League for seven seasons between 1993 and 2000 with the New York Giants. During this time, the Giants had workers’ compensation insurance coverage through Pennsylvania Manufacturer’s Association Insurance Group (PMA).

In 2006, Buckley filed a worker’s compensation claim against the Giants for cumulative stress injuries sustained while playing football, in part, in California. During the first week of November 2010, Buckley, the Giants, and PMA settled the Buckley claim for $300,000 pursuant to a “Compromise and Release” Agreement.

After Buckley’s claim had been settled, between late 2010 and June 2011, Buckley prepared and filed numerous requests for additional reimbursement under his claim. As part of these requests, Buckley prepared false invoices and statements from medical providers for medical services purportedly provided to him. Other times, Buckley prepared false credit collection notices from collection agencies purportedly seeking payment from Buckley from various medical providers for past due medical bills. Buckley transmitted the false invoices, statements and credit collection letters to his co-defendant, Kimberly Jones, who was a claims adjuster at Gallagher Bassett Services Inc. in its Sacramento office.  Gallagher Bassett was a third-party administrator that managed, among other things, workers’ compensation claims in California on behalf of PMA. Jones was aware that Buckley was not entitled to additional reimbursement under his disability claim and that the submitted documentation and requests were false. Jones caused the issuance of Gallagher Bassett checks payable to Buckley, and Buckley ultimately received over $1,588,000 in funds to which he was not entitled.

During the sentencing hearing, Judge Nunley found that Buckley engaged in a massive amount of fraud and caused serious reputational damage to the victim, Gallagher Bassett. Judge Nunley also said that Buckley’s actions were rooted in greed.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Michael M. Beckwith is prosecuting the case.

Jones is scheduled to be sentenced on February 8, 2018, by U.S. District Judge Troy L. Nunley. Jones faces a maximum sentence of 20 years in prison, a fine of $250,000 or twice the gross gain or loss in the case, and a three-year term of supervised release. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Maria Santa, 41, of Sacramento, was sentenced today to one year and one day in prison for failing to surrender for service of her sentence, U.S. Attorney McGregor W. Scott announced. U.S. District Judge Kimberly J. Mueller ordered today’s sentence to be served consecutive to Santa’s original sentence.

According to court documents, Maria Santa was previously sentenced to 20 months in prison for mortgage fraud and was ordered to begin serving her sentence in February 2014. When her motion for bail pending appeal was denied, she fled the jurisdiction and left a note at her residence that made it appear that she had committed suicide. On August 26, 2016, Maria Santa was arrested in Sacramento as a passenger in a vehicle her husband Virgil Santa was driving. She was found in possession of an identification document belonging to her twin sister.

Virgil Santa, 43, also of Sacramento, is charged with harboring a fugitive in relation to Maria Santa’s offense. The charge is only an allegation, he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Jared C. Dolan and Amanda Beck are prosecuting the case.

SACRAMENTO, Calif. — Gregory Jerome Brown, 28, of Bountiful, Utah, pleaded guilty today to robbing three banks, U.S. Attorney McGregor W. Scott announced.

According to court documents, Brown robbed three banks in three different states. Brown wrote his demands on an index card, and in one note, he claimed to have a gun. After the robberies, Brown rode away on his motorcycle. After the Utah bank robbery, Brown fled south and was apprehended in Phoenix, Arizona.

This morning Brown admitted that he robbed the following banks:

• On October 13, 2017, he robbed the Wells Fargo Bank at 338 Elm Avenue, Auburn, California;
• On October 14, 2017, he robbed the Wells Fargo Bank at 2895 Northtowne Lane, Reno, Nevada;
• On November 8, 2017, he robbed the America First Credit Union at 2928 East Mall Drive, Saint George, Utah.
   

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Auburn Police Department, the Reno Police Department, the Saint George Police Department, and the Pleasant Grove Police Department. Assistant U.S. Attorney Michelle Rodriguez is prosecuting the case.

Brown is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on April 18, 2018. Brown faces a maximum statutory sentence of 20 years in prison and a $250,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — U.S. Attorney McGregor W. Scott announced today that the Eastern District of California collected $82,182,771 in criminal and civil actions in Fiscal Year 2017. Of this amount, $13,278,653 was collected in criminal actions and $68,904,118 was collected in civil actions. The Eastern District of California also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $162,370,250 in cases pursued jointly with these offices. Of this amount, $15,414 was collected in criminal actions and $162,354,835 was collected in civil actions.

Overall, the Justice Department collected just over $15 billion in civil and criminal actions in the fiscal year ending September 30, 2017.

U.S. Attorney Scott stated: “Every year, we recover far more money for victims and taxpayers than it costs to operate our office. These collections are critical to the Department’s mission of holding wrongdoers accountable, seeking restitution for victims, and pursuing funds that belong to American taxpayers.”

A significant portion of the monies collected were for actions involving allegations of Controlled Substance Act violations, including $150 million from McKesson Corp., $5 million from CVS Pharmacy Inc., and $11.75 million from Costco Wholesale. Other settlements were for health care fraud including a $9.86 million payment by Walgreen Co. to resolve allegations that it violated the federal False Claims Act when it knowingly submitted claims for reimbursement to California’s Medi-Cal program that were not supported by applicable diagnosis and documentation requirements. Given the nationwide opioid epidemic, our office will continue to focus on these types of investigations.

Our office will also continue to focus on procurement fraud to ensure that those awarded government contracts comply with all associated requirements for receipt and use of that money. This year Sierra Nevada Corporation, a Nevada corporation that provides services to federal agencies, paid $14.9 million to resolve allegations that it violated the federal False Claims Act when it knowingly misclassified certain costs, resulting in inflated overhead rates being paid in various defense and space contracts. Cityside Management Corporation paid $4.3 million to settle allegations that it violated the False Claims Act by improperly billing the U.S. Department of Housing and Urban Development for the work of Cityside’s subcontractors.

The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud, fire, or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

Additionally, the U.S. Attorney’s office in the Eastern District of California, working with partner agencies and divisions, collected $10,377,430 in asset forfeiture actions in fiscal year 2017. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

SACRAMENTO, Calif. — Michael Carey Clemans, 57, of Sacramento, was sentenced today to life in prison for buying children, attempted travel and travel with intent to engage in illicit sexual conduct, conspiracy to travel with intent to engage in illicit sexual conduct, conspiracy to produce child pornography, attempted production and production of child pornography, and receipt of child pornography.

This case is the latest in a multi-year trend of child exploitation prosecutions focusing on defendants with prior sex offenses and those who abuse and record the sexual abuse of children. U.S. Attorney McGregor W. Scott, Federal Bureau of Investigation Special Agent in Charge Sean Ragan, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin, Sacramento County Sheriff Scott Jones, Sacramento District Attorney Anne Marie Schubert, and Fresno County Sheriff Margaret Mims joined forces today to highlight their sustained and collaborative efforts to identify and vigorously prosecute those who exploit and abuse children and trade in images depicting the sexual abuse of children.

U.S. Attorney Scott stated, “In the last four years, over 40 federal defendants prosecuted by this office have received sentences ranging from 15 years up to life in prison for crimes against children. Many of those defendants were repeat offenders or, like Clemans, were responsible for the recorded sexual abuse of their victims. Advances in technology have escalated both the heinous nature and pervasiveness of these violent crimes that affect the most vulnerable members of our communities. The U.S. Attorney’s Office is committed to continuing its collaboration with our state, local and federal partners to locate these offenders and ensure that they are prosecuted to the fullest extent of the law.”

“Child pornography is the product of horrifically violent acts perpetrated against children who are powerless to escape their attackers. The victims not only bear the physical and emotional scars of the crime throughout their lifetimes; evidence of the criminal acts that harmed them are shared again and again by consumers of illicit content. All children deserve to be safe from harm,” said Special Agent in Charge Sean Ragan of the Federal Bureau of Investigation’s Sacramento field office. “The FBI is committed to working with our local, state, federal, and international partners to identify and investigate those who both produce and consume content that depicts the violent abuse of vulnerable children to ensure they face justice for their crimes.”

U.S. District Judge John A. Mendez sentenced Clemans today after a federal jury found Clemans guilty on September 5, 2017, of buying children, attempted travel and travel with intent to engage in illicit sexual conduct, and conspiracy to travel with intent to engage in illicit sexual conduct. On the first day of trial, Clemans pleaded guilty to three additional counts: conspiracy to produce child pornography, attempted production and production of child pornography, and receipt of child pornography.

According to court documents, beginning in June 2014, Clemans conspired with a woman in the Philippines to produce child pornography. During much of the conspiracy, Clemans was temporarily residing in Bangkok, Thailand, where he worked as an airline pilot. In April 2015, Clemans returned to his Sacramento residence and continued his overseas conspiracy using his online account to chat with the Filipino woman. In these chats, Clemans discussed various strategies to obtain minor girls whom he could rape. Clemans instructed the Filipino woman on how to find vulnerable victims, directing her to look for orphans and victims of typhoons. Clemans paid nearly $6,000 to the woman so she could buy photographic equipment and find discreet locations to conduct sexually explicit photo shoots of the victims, who were as young as seven years old. On multiple occasions, Clemans paid a co-conspirator to obtain temporary custody of the children in the Philippines and produce child pornography for him.

According to evidence introduced at trial, Clemans engaged in another scheme with separate individuals in November 2013, in which he traveled from the United States to Manila for the purpose of engaging in illicit sexual conduct with minors after requesting and receiving pornographic images of minors whom he expected to rape.

This case was the product of an investigation by the Federal Bureau of Investigation and the Philippine National Bureau of Investigation. Assistant U.S. Attorneys André M. Espinosa and Colleen M. Kennedy prosecuted the case.

The following are summaries of Project Safe Childhood cases from January 2014 to present in which sentences of 25 or more years were imposed.

On October 13, 2015, Shawn Joseph McCormack, 34, of Colorado Springs, Colorado, was sentenced to life in prison for kidnapping and producing child pornography involving two toddlers. McCormack traveled to a couple’s residence in Bakersfield and stayed as an overnight guest on multiple occasions. During several of the overnight stays, in the middle of the night, McCormack snuck the couple’s toddlers out of the house and recorded his sexual abuse of them. 1:11-cr-324 AWI

On March 23, 2017, Jesse Davenport, 42, of Chico, was sentenced to 50 years in prison for conspiring with a Connecticut woman to produce a video of a child being sexually abused. The woman made a video with a child she was babysitting following Davenport’s instructions and sent it to him two times. Davenport then distributed the video to another person. Davenport had prior convictions for sex offenses against minors. 2:13-cr-399 MCE

On April 30, 2014, Neng Yang, 49, of Clovis, was sentenced to 38 years in prison for producing child pornography. While working as a teacher, Yang used an iPhone and a computer to record and store videos depicting his sexual abuse of a 12-year-old girl under his supervisory control.
1:12-cr-037 AWI

On August 25, 2014, Christopher David Robinette, 48, a U.S. citizen living in the Netherlands, was sentenced to 35 years in prison for traveling to Fresno to sexually exploit a minor. He abused the minor in California, Nevada, Mexico and Costa Rica and produced digital still and video images of the abuse. 1:13-cr-003 AWI

On January 18, 2018, Jeffrey Miles Hayes, 55, of Sacramento, was sentenced to 33 years and four months in prison for receiving over 2,000 images of children engaged in sexually explicit acts, including images showing sadistic abuse and the sexual abuse of an infant. He also possessed links to cloud storage accounts containing child pornography. At the time of the offense, Hayes had a prior conviction related to child pornography and was a registered sex offender. 2:16-cr-190 TLN

On April 12, 2016, Shane Paul Young, 47, of Fresno, was sentenced to 30 years in prison for sending and receiving hundreds of videos and images of child pornography with users across Europe and North America. The voluminous amount of child pornography included graphic images of infants and toddlers being sexually abused. Both the nature of Young’s offense and his significant prior criminal history factored into his sentence. 1:13-cr-126 DAD

On July 29, 2016, Jason Wymer, 46, of Citrus Heights, was sentenced to 30 years in prison for sexual exploitation of children. A parent accidentally sent a picture of her child to a wrong number who turned out to be Wymer. When Wymer responded requesting more pictures, the parent brought the cellphone to the FBI. An undercover employee, pretending to be a child, continued the dialog until they were able to locate and arrest him. Photos of Wymer molesting a three-year-old were found on his phone, and Wymer also admitted to molesting a four-year-old child. 2:13-cr-086 GEB

On January 19, 2017, Bret Allan Nichols, 33, of Paradise, was sentenced to 30 years in prison for paying a Florida couple to produce and record child pornography. A forensic search of Nichols’s computer seized during the subsequent search of his residence found multiple videos that Nichols had recorded of five additional child victims in Colombia and the Philippines.
2:13-cr-400 MCE

On December 3, 2014, Jeffrey Randall Metcalfe, 50, of Turlock, was sentenced to 30 years in prison for receiving and distributing child pornography. He created at least 17 accounts on a photo-sharing website, posted numerous images to the site and made comments about his interest in child pornography. Metcalfe possessed thousands of printed and digital images of child pornography. This was his second child pornography conviction in federal court in Fresno.
1:14-cr-012 LJO

On August 18, 2014, Allen Kendrick, 51, of Escalon, was sentenced to 30 years in prison for receiving and distributing child pornography. Kendrick was previously convicted of lewd and lascivious acts with a child under the age of 14, and he had a prior 2010 offense for possession of child pornography. 1:14-cr-055 LJO

On September 14, 2017, Raul Gonzalez, 44, of Woodland, was sentenced to 30 years in prison for causing a minor to engage in sexually explicit conduct, which he recorded with his cellphone camera. Gonzalez also sexually abused another minor who was less than 14 years old.
2:13-cr-377 MCE

On July 10, 2014, Phillip J. Colwell, 58, of Sacramento, was sentenced to 30 years in prison for engaging in a series of cellphone text conversations with a 14-year-old boy and sending him sexually explicit images. Colwell encouraged him to produce sexually explicit images of himself to send to Colwell. Colwell also molested a 16-year-old boy and took explicit photos of him that he then uploaded to a website in order to advertise him for sex trafficking. 2:12-cr-73-GEB

On December 8, 2014, Bradley Allen Vaine, 31, of Fresno, was sentenced to 25 years in prison for receiving and distributing more than 600 images of child pornography, some of which depicted prepubescent minors, and some were of violent or sadistic conduct. 1:12-cr-403 LJO

On March 24, 2014, Frank Charles Reddell, 43, of Madera, was sentenced to 25 years in prison for receiving child pornography. Reddell had a prior conviction for lewd and lascivious conduct with a minor, and he was on parole when an officer found him viewing child pornography in a parking lot. 1:13-cr-090 LJO

On September 9, 2016, Joshua Landon Klipp, 36, of Chico, was sentenced to 25 years in prison for persuading a minor to engage in sexually explicit conduct while he recorded and transmitted live visual depictions of it. Klipp received images from the minor, as well as other images through the internet. 2:14-cr-107 GEB

On July 20, 2015, Ricky Davis, 38, of Modesto, was sentenced to 25 years in prison for production of child pornography and attempted sex trafficking of a minor. He took sexually explicit photographs of a 13-year-old girl and posted them online within an advertisement for prostitution. 1:12-cr-056 AWI

These cases were 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. — Crystal Candiece Cooper, 35, was sentenced Tuesday to two years and five months for a bank fraud scheme, aggravated identity theft, and possession of stolen U.S. Mail, U.S. Attorney McGregor W. Scott announced.

According to court documents, between December 19, 2015 and March 27, 2017, Cooper obtained financial and identity information, checks, credit cards and bank cards from stolen U.S. mail and used them to get cash, goods, and services. Cooper targeted postal customers in Red Bluff.

One victim of Coopers identity theft scheme had applied for Social Security benefits and expected to receive a debit card in the mail to access the money. Instead, Cooper obtained mail stolen from the victim and found the victim’s debit card and other identifying information. Cooper was able to activate the card and set a PIN to give her access to the funds. She made four separate cash withdrawals using the debit card.

When Cooper was arrested by federal agents on March 27, 2017, she had in her possession stolen mail and identity information such as Social Security numbers, dates of birth, and driver’s license numbers for residents of Tehama and Shasta Counties.

This case was the product of an investigation by the United States Postal Inspection Service with assistance from the Tehama County Sheriff’s Department and Red Bluff Police Department. Assistant U.S. Attorney Michelle Rodriguez prosecuted the case.