Eastern District of California

FRESNO, Calif. —Raul Oropeza Lopez, 50, and Ana Maria Oropeza, 43, both of Delano, California, pleaded guilty today to mail fraud, United States Attorney Phillip A. Talbert announced. 

According to court documents, Raul Oropeza Lopez obtained social security numbers, names, and other personal identifying information of U.S. citizens and legal residents and then fraudulently used such information to provide undocumented workers with false identities required to work in the United States as farm laborers. Then, when the undocumented workers were laid off at the end of the growing season, Lopez and his wife filed fraudulent unemployment insurance claims in the names of the assumed identities, fraudulently relying on the work performed by the undocumented workers to claim unemployment insurance benefits for the Lopezes’ benefit. Over a period of six years, Lopez and his wife submitted more than 520 fraudulent unemployment insurance claims on behalf of over 70 individuals, collecting at least $1.3 million.

This case was the product of a joint investigation by the U.S. Department of Labor, Office of Inspector General; Homeland Security Investigations; Social Security Administration, Office of Inspector General; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Postal Inspection Service; and the California Employment Development Department, Criminal Investigations Division. Assistant United States Attorney Mark J. McKeon is prosecuting the case.

The defendants are scheduled to be sentenced by Judge Lawrence J. O'Neill on January 29, 2018. Each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Garik Voskanyan, 34, of Sacramento, was sentenced today by United States District Judge Garland E. Burrell, Jr. to 15 months in prison for bank fraud, United States Attorney Phillip A. Talbert announced.

According to court documents, in May 2013, Voskanyan conspired with his

co-defendant, Karapet Damaryan, and others to steal the identity of an innocent bank account holder in order to gain control over the victim’s bank account. The conspirators then fraudulently wired $141,395 out of the victim’s account to a gold coin and bullion store, where Voskanyan and his co-defendant attempted to use the stolen funds to purchase nearly 100 one-ounce gold coins. The fraud was detected when the victim checked his bank account on the day the fraudulent wire was attempted. Voskanyan and Damaryan were arrested outside the gold store when they arrived to pick up the gold.

This case was the product of an investigation by the United States Secret Service and the Placer County Sheriff's Office. Assistant United States Attorneys Matthew G. Morris and Amy Schuller Hitchcock prosecuted the case.

Co-defendant Damaryan pleaded guilty to aggravated identity theft and bank fraud on January 20, 2017, and is set to be sentenced on October 27, 2017.

SACRAMENTO, Calif. — Donald Loyde Harned, 72, of Oklahoma, was sentenced today by United States District Judge Garland E. Burrell, Jr. to two years in prison and ordered to pay $219,984.00 in restitution for conspiring to defraud the United States with false claims for federal tax refunds, United States Attorney Phillip A. Talbert announced.

According to court documents, beginning in 2011, Harned and six other co-defendants operated a tax fraud scheme in which they filed false tax returns using the identities of prison inmates.  To execute the scheme, the conspirators incarcerated inside the Susanville Correctional Center obtained the personal identification information of other inmates.  They provided this information to those outside the prison, including Harned, who then used this information to prepare and file false income tax returns with the IRS using the Earned Income Tax Credit (EITC), containing information they knew to be false and claiming refunds to which they knew the inmates were not entitled.  Harned was paid by the inmates for each return he prepared and filed, and retained a portion of the false refunds for himself.

"The Earned Income Tax Credit is a refundable tax credit for working individuals and couples, particularly those with children, who earn a low to moderate income," said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. "Mr. Harned and his co-conspirators devised a scheme to illegally use the EITC for inmates that had no income and did not qualify for the credit. IRS-CI will aggressively investigate these types of prison schemes ensuring the EITC program is applied correctly."

This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Unit at the California Correctional Center.  Assistant United States Attorney Amy Schuller Hitchcock prosecuted the case.

To date, six of the seven individuals charged in this conspiracy have pleaded guilty.  The six have been sentenced, including Edwin Ludwig IV, who was sentenced to seven years in prison for leading the scheme.  Charges are pending against one remaining defendant.  The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned a two-count indictment yesterday against Crescencio Pastor Carmona Venegas, 32, of San Diego, charging him with cultivation of marijuana and being an alien in possession of a firearm, United States Attorney Phillip A. Talbert announced. 

According to court documents, a clandestine marijuana grow site on U.S. Forest Service land in the Stevenson Creek area of Madera County was observed from the air in early September 2017. On September 13, 2017, USFS officers and other law enforcement personnel hiked into the grow site and apprehended Venegas. Officers found 2,052 live marijuana plants, a .22 caliber rifle, a .22 caliber handgun, and ammunition in the grow site. Venegas is prohibited by law from possessing a firearm. 

This case was the product of an investigation by the U.S. Forest Service. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.

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

FRESNO, Calif. — A federal grand jury returned a three-count indictment yesterday against James Gonzales-Gay, 35, of Sanger, charging him with assault with the intent to rob and steal mail matter, theft of government property, and being a felon in possession of a firearm, United States Attorney Phillip A. Talbert 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 his mail delivery truck. Gonzales-Gay allegedly pulled the driver from the truck and began driving it.  After driving a short distance, Gonzales-Gay was stopped by Fresno Police Department officers. They found parts of a Taurus handgun on Gonzales-Gay’s person and near the truck.  Gonzales-Gay is prohibited by law from possessing a firearm.

This case was the product of an investigation by the United States Postal Inspection Service and the Fresno Police Department. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.

If convicted, Gonzales-Gay 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. — Charles Carstersen, 54, of Manteca, pleaded guilty today to one count of sex trafficking a minor, United States Attorney Phillip A. Talbert announced.

According to court documents, beginning in April 2014, while employed at the Bureau of Prisons, Carstersen met the 16-year-old victim and engaged in commercial sex acts with her. Between February and March 2015, knowing she was underage, he encouraged her to engage in prostitution, renting hotel rooms for her in the Sacramento area and helping her to post ads online. He also encouraged her to engage in prostitution with at least one other female that he knew. On May 11, 2015, Carstersen was arrested and he has been in custody as a flight risk and a danger to the community since that time.

This case is the product of an investigation by the Federal Bureau of Investigation’s Sacramento Child Exploitation Task Force of which the Sacramento Police Department is a member, the U.S. Department of Justice, Office of the Inspector General, and the Roseville Police Department. Assistant United States Attorney Michele Beckwith is prosecuting the case.

Carstersen is scheduled to be sentenced by Judge Garland E. Burrell Jr. on April 6, 2018.  He faces a minimum term of 10 years in prison, and a maximum penalty of up to life in prison and a $250,000 fine. Any sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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. —Michael McCree, 65, of Vacaville, CA, pleaded guilty today to one count of mail fraud, United States Attorney Phillip A. Talbert announced. 

According to court documents, McCree worked for the United States Post Office for approximately six months in 1988 and 1989, before he filed a workers’ compensation claim for an alleged back injury. Since 1989, the Department of Labor, on behalf of the Postal Service, has been paying McCree monthly wage loss compensation and reimbursements for medical-related travel. The indictment alleges that from January 2007 through June 2012, McCree received over $120,000 in reimbursements for medical-related travel, but that McCree in fact did not travel to the location listed and further did not receive medical treatment at the location in any event.

This case was the product of an investigation by the United States Postal Service-Office of Inspector General. Assistant United States Attorney Todd A. Pickles is prosecuting the case.

McCree is scheduled to be sentenced by Judge Troy L. Nunley on January 11, 2018. McCree faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — On September 21, 2017, a federal grand jury returned a two-count indictment against Wilfred Wallace Bryant, 55, of Vacaville, charging him with possession of methamphetamine with intent to distribute and being a felon in possession of a firearm, United States Attorney Phillip A. Talbert announced.  Bryant was taken into custody today and the indictment was unsealed.

According to court documents, on or about July 14, 2017, Bryant was found to be in possession of a mixture and substance containing methamphetamine and a Hi-Point CF-380 handgun. Bryant is prohibited from possessing a firearm.

This case was the product of an investigation by the Vacaville Police Department and the FBI Solano County Violent Crimes Task Force. Assistant United States Attorney Owen Roth is prosecuting the case.

If convicted, Bryant faces a maximum statutory penalty of twenty years in prison and a $1,00,000 fine for possession of methamphetamine with intent to distribute.  He also faces a maximum statutory penalty of ten years in prison and a $250,000 fine for unlawful possession of a firearm. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Sair Maldonado-Soto (Maldonado), 22, of Perris, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute, and manufacturing marijuana in connection with two separate large-scale marijuana cultivation operations in Kern County in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.

Maldonado also agreed to pay restitution to the U.S. Forest Service for the damage to public land and natural resources caused by the marijuana cultivation activities.

According to court documents, Maldonado 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 after a four-month investigation. The investigation revealed that they were supplying material, equipment, and personnel to the grow sites, which consisted of 10,396 marijuana plants. The marijuana cultivation operations caused extensive damage to the land and natural resources. Harmful pesticides and fertilizers, miles of plastic irrigation lines, and large amounts of trash were found at both sites. Native trees and vegetation were also removed to make room for the marijuana plants.

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.

Maldonado is scheduled for sentencing on December 18, 2017. He faces a statutory mandatory minimum penalty of five years in prison and a maximum penalty of 40 years in prison, along with a possible maximum $5 million fine. Herrera previously entered a guilty plea and is scheduled for sentencing on December 4. Codefendant Toledo-Villa previously entered a guilty plea and was sentenced to five years in prison. Codefendant Cardenas-Suastegui has requested a jury trial, which is set for November 7. The charges are only allegations; Cardenas-Suastegui is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Russell Lee Riggs, 69, of Weldon, was sentenced today to five years in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana grown in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.

The sentence was imposed following his guilty plea in June. According to court documents, Riggs delivered supplies and material to a marijuana cultivation site containing over 3,000 marijuana plants in the Fay Creek drainage in the Sequoia National Forest. He also received and removed processed marijuana from the site. Springs were dammed and diverted to irrigate the marijuana plants and large amounts of trash were scattered throughout the site, including in a flowing stream. Law enforcement officers also seized marijuana cultivation equipment and supplies, over $7,000 in cash, 16 firearms and over 2,000 rounds of ammunition at the site and during follow-up searches of Riggs’s residence and that of co-defendant Juan Penaloza-Ramirez, 46, a native and citizen of Mexico.

In sentencing Riggs, U.S. District Judge Dale A. Drozd also ordered Riggs to pay $1,719.31 to the U.S. Forest Service for the damage to public land and natural resources caused by the cultivation activities. He also ordered the forfeiture of the seized firearms and ammunition.

Penaloza-Ramirez pleaded guilty and was sentenced in June to serve seven years and three months in prison.

This case was the product of an investigation by the U.S. Forest Service, U.S. Drug Enforcement Administration (DEA), Bureau of Land Management, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms and Explosives, Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, California Department of Fish and Wildlife, California Department of Justice’s Campaign Against Marijuana Planting (CAMP), and Kern County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned two separate indictments today against Maurice Darnell Jones, Jr. 21, of Vacaville, and Jerry Lyle Andrews, Jr., 34, of Vallejo, charging each with one count each of being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.

U.S. v. Maurice Darnell Jones Jr., 2:17-cr-173 JAM

 According to court documents, on August 27, 2017, the Vacaville Police Department encountered Jones and recovered a .40-caliber handgun near his vehicle. Jones is prohibited by law from possessing firearms.    

This case is the product of a joint investigation by the Federal Bureau of Investigation’s Solano County Violent Crimes Task Force, the Vacaville Police Department, and the Vallejo Police Department.

U.S. v. Jerry Lyle Andrews Jr., 2:17-cr-174 MCE

In a separate case, on July 26, 2017, law enforcement officers confronted Andrews in a hotel parking lot in Fairfield where he allegedly discarded a .40‑caliber semi-automatic handgun under a car before he was arrested.  The gun was loaded with 12 rounds of ammunition, including seven rounds of hollow point ammunition. Andrews is prohibited by law from possessing firearms.   

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

If convicted, Jones and Andrews each face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence would be determined at the discretion of the district court after considering any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Tosh Babu, 33, of Stockton, was sentenced today by U.S. District Judge Troy L. Nunley to two and a half years in prison for conspiracy to submit false claims, U.S. Attorney Phillip A. Talbert announced. Judge Nunley also ordered Babu to pay $94,451 in restitution to the IRS.

According to court documents, between September 28, 2010, and October 30, 2012, Babu conspired with others to submit tax returns to the IRS that falsely claimed that the persons named on the returns were entitled to tax refunds. The conspirators obtained the names, social security numbers, and other personal identifying information of various individuals and used that information, often without the knowledge of those people, to submit the tax returns in their names. Altogether, they submitted at least 1,367 false tax returns, requesting approximately $962,853 in tax refunds. The IRS paid more than $252,000 in fraudulent tax refunds as a result of the scheme.

“Mr. Babu took personal identifiable information (PII) from homeless individuals and used the PII for personal gain by preparing and filing false tax returns with IRS,” said Michael T. Batdorf, Special Agent in Charge IRS Criminal Investigation. “He then negotiated those fraudulent tax refund checks by depositing them in bank accounts under the control of co-conspirators. Individuals thinking about participating in fraudulent tax schemes should consider the real consequences of these types of illegal actions. Those include going to prison, being branded a convicted felon for the rest of their lives, and paying back restitution to the IRS for all the taxes owed.”

Babu pleaded guilty on May 25, 2017. On July 14, 2017, co-defendant Christopher M. Grady, 35, of Stockton, was sentenced to three years of time already served in prison for conspiring to submit false claims to the Internal Revenue Service and aggravated identity theft. Co-defendant Jacob Cook, of Stockton, pleaded guilty on May 4, 2017. He was sentenced by Judge Nunley on September 7, 2017, to two and a half years in prison.

Co-defendant Jeffrey Grady, of Stockton, is next scheduled for a status hearing before Judge Nunley on December 14, 2017. The charges against him are allegations only, and 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. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.

BAKERSFIELD, Calif. — Noel Carter, 44, of Bakersfield, was arrested today for conspiring with Bakersfield Police Department officers Damacio Diaz and Patrick Mara to distribute methamphetamine and marijuana that Diaz and Mara seized in the course of their duties as police officers, U.S. Attorney Phillip A. Talbert announced.

On September 14, 2017, a federal grand jury returned a three-count indictment charging Carter with conspiracy to distribute methamphetamine and marijuana, and two counts of possession with intent to distribute methamphetamine. The indictment was initially sealed and was unsealed today.

The indictment alleges that from April 2012 to August 2015, Carter conspired with Mara and Diaz who deliberately failed to submit the seized drugs into the BPD evidence room, and instead provided the stolen narcotics to Carter so Carter could sell those narcotics for profit. The indictment also alleges that Mara took marijuana and provided it to Carter to process so it was suitable for sale. Finally, the indictment alleges that Carter conspired with Mara to unlawfully manufacture, process, and sell marijuana for profit.

Earlier court records indicate that in May 2016, Damacio Diaz pleaded guilty to possessing with the intent to distribute methamphetamine, as well as receiving bribes and making a false income tax return. In June 2016, Mara pleaded guilty to conspiring to distribute, and to possess with the intent to distribute, methamphetamine. Diaz was removed from active duty with the Bakersfield Police Department in approximately February 2015, as was Mara in the summer of 2015. Diaz and Mara are currently serving federal prison sentences.

This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Bakersfield Police Department. Assistant U.S. Attorneys Brian K. Delaney and Angela Scott are prosecuting the case.

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

SACRAMENTO, Calif. — Jason Prom, 23, of Stockton, was sentenced today by U.S. District Judge Kimberly J. Mueller to 12 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, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between January and June 2016, Prom led a nine-person, interstate conspiracy to sell firearms without possessing the required federal license. During this time, members of the conspiracy illegally sold a total of 47 firearms to undercover agents in Stockton and Las Vegas. The firearms included five automatic weapons, a short-barreled rifle, and at least half a dozen guns with obliterated serial numbers. They also included two stolen guns and another half-dozen guns that had never been serialized. Many of these firearms were military-style assault weapons.

Prom himself sold the majority of the weapons and several high-capacity magazines to the undercover agents. He planned out-of-state supply trips, placed orders for semi-automatic Glocks to be converted to automatics, negotiated prices, and supervised the removal of serial numbers.

Prior to January 28, 2016, Prom had been convicted of two felonies and was prohibited from possessing any firearm. He was on parole for these felony convictions during the entirety of the conspiracy.

On July 21, 2016, Prom was indicted along with Kenny Prach, 22, of Las Vegas; Gary Loch, 28, of Oregon; Stockton residents Ariana Diaz, 22; Adam Nhem, 21; Hilberto Arevalos, 36; Sean Chaichanhda, 25; and Ronnie Dethvongsa, 26.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Stockton Police Department and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Amanda Beck and Richard Bender are prosecuting the case.

Prom and four co-defendants have pleaded guilty. They are scheduled to be sentenced as follows: Prach on September 27, Dethvongsa on October 11, Diaz on November 8, and Arevalos on December 6.

Charges are pending against Loch and Chaichanhda. Nhem has not been arrested. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

BAKERSFIELD, Calif. — On Tuesday, over 600 people gathered to watch a movie telling the story of one of the deadliest hate crimes in recent U.S. history. The screening, which was held at Dore Theater on the CSU Bakersfield campus, was followed by a discussion between representatives from law enforcement agencies and community leaders, U.S. Attorney Phillip A. Talbert announced.

The acclaimed film, “Waking in Oak Creek,” tells the empowering story of how the community of Oak Creek, Wisconsin responded when six worshipers at a Sikh Temple were killed by a white supremacist during prayer services in 2012. The entire community and law enforcement worked together to overcome tragedy and stand up to hate.

U.S. Attorney Talbert stated: “In the aftermath of the deadly attack on the Sikh gurdwara in Oak Creek, Wisconsin, the entire community rallied together to turn tragedy into an opportunity to unite against hate. The community found positive and inclusive ways to commemorate the victims, which included Sikh worshippers as well as law enforcement officers, and to raise awareness about hate crimes, particularly those directed at Sikhs. I am proud that my office could host a screening of the film that documents that community’s inspiring response to hate and facilitate a discussion about how our community can work together to prevent these crimes from happening in our district.”

The U.S. Attorney’s Office organized this event in partnership with the FBI; the Bakersfield Sikh Community; Sikh Riders of America; Islamic Shoura Council of Bakersfield; California State University Bakersfield, including the School of Social Sciences and Education, the Departments of Criminal Justice, Political Science, and Sociology, the University Police Department, and the Kegley Institute of Ethics; Bakersfield Police Department; Kern County Sheriff’s Office; and the Kern County District Attorney’s Office.

After the screening of the 33-minute film, Kirk Sheriff, chief of the U.S. Attorney’s Office in Fresno, moderated a panel discussion where law enforcement officials and Sikh and Muslim Community leaders offered their perspectives on identifying opportunities and strategies to collaborate in the fight against hate. The panel members were FBI Special Agent in Charge Sean Ragan, Sikh community representative Mandeep Singh Chahal, President of the Islamic Shoura Council of Bakersfield Ollie Zachary, Bakersfield Police Chief Lyle Martin, Kern County Undersheriff Brian Wheeler, and Kern County District Attorney Lisa Green.

The panel discussion was followed by a lively and collaborative question and answer session that gave attendees the opportunity to engage with panelists and have their voices heard on this important issue.

 “Waking in Oak Creek” was produced in conjunction with the U.S. Department of Justice COPS Office as part of the Not In Our Town: Working Together for Safe, Inclusive Communities Initiative. Follow this link to view the documentary in full.

BAKERSFIELD, Calif. — On Tuesday, over 600 people gathered to watch a movie telling the story of one of the deadliest hate crimes in recent U.S. history. The screening, which was held at Dore Theater on the CSU Bakersfield campus, was followed by a discussion between representatives from law enforcement agencies and community leaders, U.S. Attorney Phillip A. Talbert announced.

The acclaimed film, “Waking in Oak Creek,” tells the empowering story of how the community of Oak Creek, Wisconsin responded when six worshipers at a Sikh Temple were killed by a white supremacist during prayer services in 2012. The entire community and law enforcement worked together to overcome tragedy and stand up to hate.

U.S. Attorney Talbert stated: “In the aftermath of the deadly attack on the Sikh gurdwara in Oak Creek, Wisconsin, the entire community rallied together to turn tragedy into an opportunity to unite against hate. The community found positive and inclusive ways to commemorate the victims, which included Sikh worshippers as well as law enforcement officers, and to raise awareness about hate crimes, particularly those directed at Sikhs. I am proud that my office could host a screening of the film that documents that community’s inspiring response to hate and facilitate a discussion about how our community can work together to prevent these crimes from happening in our district.”

The U.S. Attorney’s Office organized this event in partnership with the FBI; the Bakersfield Sikh Community; Sikh Riders of America; Islamic Shoura Council of Bakersfield; California State University Bakersfield, including the School of Social Sciences and Education, the Departments of Criminal Justice, Political Science, and Sociology, the University Police Department, and the Kegley Institute of Ethics; Bakersfield Police Department; Kern County Sheriff’s Office; and the Kern County District Attorney’s Office.

After the screening of the 33-minute film, Kirk Sheriff, chief of the U.S. Attorney’s Office in Fresno, moderated a panel discussion where law enforcement officials and Sikh and Muslim Community leaders offered their perspectives on identifying opportunities and strategies to collaborate in the fight against hate. The panel members were FBI Special Agent in Charge Sean Ragan, Sikh community representative Mandeep Singh Chahal, President of the Islamic Shoura Council of Bakersfield Ollie Zachary, Bakersfield Police Chief Lyle Martin, Kern County Undersheriff Brian Wheeler, and Kern County District Attorney Lisa Green.

The panel discussion was followed by a lively and collaborative question and answer session that gave attendees the opportunity to engage with panelists and have their voices heard on this important issue.

 “Waking in Oak Creek” was produced in conjunction with the U.S. Department of Justice COPS Office as part of the Not In Our Town: Working Together for Safe, Inclusive Communities Initiative. Follow this link to view the documentary in full.

SACRAMENTO, Calif. — Dennis Boyle, 53, of Davis, was sentenced today by U.S. District Judge Kimberly J. Mueller to seven years in prison for distributing child pornography and obstruction of justice, U.S. Attorney Phillip A. Talbert announced.

According to court documents, law enforcement agents identified a user on a messenger service who was offering videos of child pornography in an online chat room. The investigation led to Boyle’s residence, which was then in Orangevale. Boyle was a financial auditor for the State of California and a charter organization representative for the Boy Scouts.

Between August and October of 2015, Boyle distributed and received depictions of minors engaged in sexually explicit conduct. Boyle obstructed justice when he attempted to persuade a friend to delete electronic evidence stored on a laptop computer and on remote servers. The friend reported the solicitation to authorities, and assisted in the investigation by recording a meeting with Boyle who admitted to viewing, downloading, and distributing child pornography, and, further, admitted to online chats with girls aged 14 to 18.

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Matthew D. Segal prosecuted the case.

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

SACRAMENTO, Calif. — On July 6, 2017, a federal grand jury returned a five-count indictment against Raeef Ohan Ohan, 58, of Stockton, charging him with possession of goods stolen from interstate shipments and engaging in monetary transactions in criminally derived property, U.S. Attorney Phillip A. Talbert announced.

Ohan was arraigned today and entered a plea of not guilty. He is scheduled to appear before U.S. District Judge Morrison C. England Jr. on October 26, 2017.

According to court documents, Ohan was found in possession of thousands of dollars’ worth of stolen goods, which had been embezzled or stolen from truck trailers, vehicles or warehouses while the goods were being shipped and transported interstate. The stolen goods included pet food, nutrition drinks, and concrete, and were stolen over the course of several years beginning in at least 2012.

This case is the product of an investigation by the TRaCE (Tax Recovery and Criminal Enforcement) Task Force. The TRaCE Task Force joins existing state and federal resources to collaboratively combat illegal business activities that rob California of public funds and its citizens of public services. The TRaCE Task Force is composed of investigators and special agents from multiple agencies working together to investigate, prosecute and recover revenue lost to the underground economy. These agencies include the Federal Bureau of Investigation; U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service Criminal Investigation; California Department of Justice - Bureau of Investigation, Office of the Attorney General; California Department of Tax and Fee Administration; California Franchise Tax Board; California Employment Development Department; and California Department of Motor Vehicles. Assistant United States Attorneys Jared C. Dolan and Amy Schuller Hitchcock are prosecuting the case.

If convicted, Ohan 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. — Willie James McNeal, 60, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to six years and five months in prison for an assault on another inmate that resulted in serious bodily injury, U.S. Attorney Phillip A. Talbert announced. McNeal was also ordered to pay more than $39,000 in restitution, which includes restitution to the victim of the assault to cover resulting medical costs.

According to court documents, on May 25, 2015, McNeal, attacked another inmate at the Federal Correctional Institution at Herlong, causing multiple fractures of the bones in his face. The victim required two surgeries and experienced extreme pain, as well as disfigurement and impairment of his nasal and breathing functions. Two surveillance videos documented the assault. The videos showed that McNeal, after speaking briefly with the victim, punched him near his right eye. McNeal continued to punch the victim multiple times in the forehead before tossing the inmate onto the concrete floor.

On April 20, 2017, a federal jury in Sacramento found McNeal guilty of the assault.

This case was the product of an investigation by the Federal Bureau of Investigation and the Bureau of Prisons. Assistant U.S. Attorneys Owen Roth and Amanda H. Beck prosecuted the case.

SACRAMENTO, Calif. — Nive Hagay, 31, of Los Angeles, was sentenced today by U.S. District Judge Morrison C. England Jr. to two years in prison to be followed by three years of supervised release for conducting an illegal gambling business and distributing cocaine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between 2008 and November 2016, Hagay, who also went by the name “Dino the Casino,” placed video slot machines in small businesses from Bakersfield to Sacramento. Hagay then laundered the proceeds from the illegal gambling business through clothing companies in Los Angeles, as well as by making large purchases with the cash proceeds, such as a $202,000 cash transaction for a 2014 Audi R8.

On October 15, 2016, at a smoke shop in Sacramento, Hagay sold approximately one ounce of a mixture that tested positively for cocaine.

In addition to the sentence imposed, Hagay forfeited various assets acquired with cash from the illegal gambling business, including a 2010 Aston Martin Rapide, a 2016 Mercedes Benz AMG GT, several Ducati motorcycles, and hundreds of thousands of dollars seized from his home, the illegal slot machines, and various bank accounts.

This case was the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant U.S. Attorneys Matthew M. Yelovich and Justin L. Lee prosecuted the case. Assistant U.S. Attorney Kevin Khasigian handled the forfeiture.

SACRAMENTO, Calif. —Raul Gonzalez, 43, of Woodland, was sentenced by U.S. District Judge Morrison C. England Jr. to 30 years in prison for production of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, this case originated from a tip from the National Center for Missing and Exploited Children concerning an email address that was linked to an online photo-sharing site featuring images of minors engaged in sexually explicit conduct. The email address was registered to Gonzalez, and a search of his home uncovered a cellphone containing multiple images of child pornography.

Officers discovered that two of the minor victims portrayed in those images had been exploited and photographed by Gonzalez himself, and that one of the victims was his prepubescent relative. According to court documents, on October 13, 2013, Gonzalez caused his minor relative 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.

Gonzalez was convicted in Yolo Superior Court (case 14-3642) for the abuse of the two minors and sentenced to 30 years in prison. Judge England ordered that the sentence in this case be served concurrently with the 30‑year sentence imposed in Yolo County Superior Court case, and that the sentence be served in federal prison. Gonzalez pleaded guilty to the federal charge on June 1, 2017.

U.S. Attorney Talbert stated: “Today’s long sentence underscores the egregious nature of the defendant’s crime. Gonzalez preyed on and exploited two very young children, and compounded that abuse by recording it. My office is committed to working with our law enforcement partners to prosecute and incapacitate those who exploit the most vulnerable members of our society.”

Special Agent in Charge Sean Ragan of the Sacramento Field Office stated: “The production of child pornography is an assault against the most vulnerable members of our society. While Gonzales will serve a 30-year sentence for his crimes, his victims may suffer the effects of this crime for a lifetime. The FBI is committed to working with our law enforcement partners to identify and apprehend those who prey upon our nation's children.”

This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Valley 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 Matthew G. Morris prosecuted the case.

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

FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Ricardo Rumbo Vasquez, 37; Andres Dominguez Aguirre, 24; and Eric Oswaldo Felix, 43, all of Modesto, charging them with conspiracy to distribute and possession with intent to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, all of the defendants were arrested after meeting in a parking lot to negotiate the delivery of methamphetamine. Felix’s car was searched by law enforcement, resulting in a seizure of 60 plastic bags of methamphetamine located in a secret compartment in the roof of the car.

This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Drug Enforcement Administration, and the Stanislaus County Drug Enforcement Agency. Assistant U.S. Attorney Vincenza Rabenn is prosecuting the case.

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

SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Chi Meng Yang, 31, of Montague, and his sister Gaosheng Laitinen, 36, of Cottage Grove, Minnesota, charging them with conspiring to commit bribery, bribery of a public official, conspiracy to manufacture marijuana, and manufacturing marijuana, U.S. Attorney Phillip A. Talbert announced.

Yang and Laitinen will be arraigned on the indictment on Friday, September 15, 2017, in Sacramento at 2:00 p.m. before U.S. Magistrate Judge Deborah Barnes. Future court dates will be set at that hearing.

According to court documents, on May 17, 2017, Yang met with Siskiyou County Sheriff Jon Lopey in Yreka. During the meeting, Yang offered $1 million to the Sheriff in exchange for his assistance with an interstate marijuana distribution business that Yang and others were in the process of organizing in Siskiyou County. Immediately after the meeting, the Sheriff reported it to the Federal Bureau of Investigation and the Drug Enforcement Administration. Federal agents asked the Sheriff to continue meeting with Yang.

The subsequent meetings were audio and video recorded by the FBI and Laitinen attended some of those meetings. Because Yang’s offer of $1 million depended on Yang securing and profiting from certain out-of-state marijuana licenses, Yang and Laitinen promised to pay the Sheriff a total of $80,000 if he would exempt eight properties from the Siskiyou County ban against outdoor marijuana grows. Yang and Laitinen gave the Sheriff several initial payments, totaling $10,500 in cash. These funds were immediately seized by the FBI as evidence.

This case is a product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Siskiyou County Sheriff’s Office, with assistance from the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Enforcement and Removal Operations (ERO), Bureau of Land Management (BLM), U.S. Forest Service (USFS), North State Marijuana Investigations Team (NSMIT), Tehama Inter-agency Drug Enforcement (TIDE), Shasta Inter-agency Narcotics Task Force (SINTF), Siskiyou Unified Major Investigations Team (SUMIT), and California Highway Patrol (CHP). Assistant U.S. Attorney Michael M. Beckwith is prosecuting the case.

If convicted of the charges in the indictment, Yang and Laitinen face the following maximum penalties: (1) five years in prison and a $250,000 fine for the conspiracy charge; (2) 10 years in prison and a $250,000 fine for the bribery charge; and (3) a minimum of five years and up to 40 years in prison and a $5 million fine for each of the drug charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

FRESNO, Calif. — Erik Harald Moje, 40, a California-licensed attorney and resident of Turlock, was sentenced today by U.S. District Judge Dale A. Drozd to nine months in prison to be followed by two years of supervised release for importing raw anabolic steroids from China, U.S. Attorney Phillip A. Talbert announced.

Anabolic steroids are synthetically produced variants of the naturally occurring male hormone testosterone. They are regulated under the Controlled Substances Act (CSA) as a Schedule III controlled substance and may not be possessed lawfully in the United States without a prescription. Importing anabolic steroids by a person who is not a Drug Enforcement Administration registrant, such as a physician or a pharmacy, is unlawful and a violation of the CSA.

On February 6, 2017, Moje pleaded guilty to unlawfully importing anabolic steroids. According to court documents, between December 1, 2013, and September 1, 2015, Moje, a licensed attorney and professional bodybuilder, unlawfully purchased and obtained anabolic steroids from a supplier in China. Encrypted emails documented shipments and indicated that the purchase money would be deposited into the bank account for the Law Office of Eric Moje. He routed shipments of steroids through a mail-forwarding service in New York, as well as private citizens in other parts of the country.

In May 2015, agents intercepted a parcel containing one kilogram of steroids, which equates to 40,000 dosage units. In September 2015, agents executed a search warrant at Moje’s residence. Behind a false wall in the garage, they found 538 10‑milliliter vials containing liquid anabolic steroids, which equates to 10,760 dosage units, and 17,700 steroid capsules.

In sentencing Moje, Judge Drozd ordered the forfeiture of Moje’s residence. Also forfeited were: $29,925 in cash found during the search of the residence, a 2011 BMW 750Li, and 11 firearms.

This case was the product of an investigation by the Drug Enforcement Administration with the assistance of the U.S. Marshals Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Turlock Police Department and Modesto Police Department. The case was also part of Operation Cyber Juice, a nationwide initiative targeting domestic and international steroid trafficking organizations. Assistant United States Attorney Karen A. Escobar prosecuted the case. Assistant U.S. Attorney Kevin C. Khasigian handled the asset forfeiture proceedings.

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. — Juan Carlos Maldonado, 22, originally of Michoacán, Mexico, was sentenced today to seven years and three months in prison by U.S. District Judge John A. Mendez for the armed robbery of a U.S. mail carrier, participation in a bank fraud scheme, and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on June 21, 2016, Maldonado and others followed a U.S. letter carrier in a Rancho Cordova neighborhood using a sport utility vehicle with its plates removed. They pulled alongside the postal truck and when the carrier stepped out to deliver mail, Maldonado wielded a pistol at the carrier and robbed him at gunpoint. During the robbery, Maldonado and his associates raided the postal truck, stealing over 800 items of U.S. Mail. Following the robbery, they rifled through the stolen mail for personal identification and financial information, which Maldonado used and provided to others for use to defraud financial institutions.

On June 30, 2016, Maldonado was arrested by the El Dorado County Sheriff’s Office at the Red Hawk Casino while attempting to access proceeds from credit cards stolen during the robbery. Maldonado pleaded guilty to the charges on June 6, 2017.

San Francisco Division Inspector in Charge Rafael Nunez stated: “Working with the U.S. Attorney’s Office and our partners in law enforcement, Postal Inspectors arrested this individual for the armed robbery of a U.S. Postal Service Letter Carrier. Protecting postal employees from harm is the U.S. Postal Inspection Service’s top priority.”

This case was the product of an investigation by the United States Postal Inspection Service and the United States Postal Inspection Service’s Narcotic and Economic Crimes Investigations Task Force (NECI) with assistance from the El Dorado County Sheriff’s Office, the El Dorado County District Attorney’s Office, and the Rancho Cordova Police Department. NECI is a partnership between local and federal law enforcement to combat theft and unlawful use of the U.S. Mail. The Placer County District Attorney’s Office and Sutter County Sheriff’s Office have each dedicated law enforcement personnel to the task force. Assistant United States Attorney Michelle Rodriguez prosecuted the case.

SACRAMENTO, Calif. —Alexander Jordan Miller, 21, of Elk Grove, pleaded guilty today to producing child pornography, U.S. Attorney Phillip A. Talbert announced.

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

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

Miller is scheduled to be sentenced by Judge John A. Mendez on January 9, 2018. Miller faces a mandatory minimum sentence of 15 years in prison, and a maximum statutory sentence of 30 years in prison. The maximum fine that the court may impose is $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 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 nternet safety education.

FRESNO, Calif. —Coral Herrera, 21, of Perris, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute, and manufacturing marijuana in connection with two separate large-scale marijuana cultivation operations in Kern County in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.

Herrera also agreed to pay restitution to the U.S. Forest Service for the damage to public land and natural resources caused by the marijuana cultivation activities.

According to court documents, Herrera was linked to grow sites in the Lucas Creek drainage and an area known as the Box 6 site after a four-month investigation. The investigation revealed that she was supplying material, equipment, and personnel to the grow sites, which consisted of 10,396 marijuana plants, and that she was also responsible for transporting co-defendants Abel Toledo-Villa, 34, and Alfredo Cardenas-Suastegui, 56, both natives and citizens of Mexico, away from the Box 6 grow site after it was raided. The marijuana cultivation operations caused extensive damage to the land and natural resources. Harmful pesticides and large amounts of trash were found at both sites. Native trees and vegetation were also removed to make room for the marijuana plants.

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.

Herrera is scheduled for sentencing on December 4, 2017, by U.S. District Judge Lawrence J. O’Neill. She faces a maximum penalty of 20 years in prison and a fine of $1 million. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. Toledo-Villa previously entered a guilty plea and was sentenced to five years in prison. Charges against Cardenas-Suastegui and Maldonado-Soto are still pending. The charges are only allegations; Cardenas-Suastegui and Maldonado-Soto are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — On Thursday, following a 10-month-long investigation targeting local criminal street gangs in Fresno conducted by several federal law enforcement agencies and the Fresno Police Department, 15 defendants were arrested on federal charges and at least 14 defendants were arrested on state charges. The various charges include drug trafficking, conspiracy to traffic illegally in firearms, and transportation for the purpose of prostitution. The 104-page federal criminal complaint charges 18 defendants with criminal activity ranging from firearms trafficking, drug trafficking, and prostitution-related offenses. According to court documents, the investigation uncovered multiple sales of methamphetamine, cocaine, and firearms by the various defendants between January and August 2017.

U.S. Attorney Phillip A. Talbert, Drug Enforcement Administration (DEA) Special Agent in Charge John J. Martin, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge Ryan L. Spradlin, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jill Snyder, Federal Bureau of Investigation (FBI) Special Agent in Charge Sean Ragan, and Fresno Chief of Police Jerry Dyer made the announcement today.

The investigation has resulted in the seizure of more than 30 firearms and multiple pounds of methamphetamine. On September 7, 2017, in addition to the arrests, nine search warrants and multiple probation and parole searches were executed on the target gang members and their associates.

U.S. Attorney Talbert stated: “This operation demonstrates how law enforcement partners at the federal, state and local level are working as one to pursue criminal gangs and their associates. All of these agencies will work tirelessly to protect our communities and to hold accountable those who threaten our safety.”

DEA Special Agent in Charge John J. Martin stated; “Drug, firearms and human trafficking bring blight to the community and tear at the fabric of society. DEA will continue to conduct investigations with our counterparts that send the message these activities will not be tolerated in our neighborhoods.”

“The FBI is dedicated to working with all law enforcement partners to effectively target gang violence in all of its forms,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “We are committed to keeping illegal firearms and drugs off of our streets and preventing victimization to ensure a brighter future for our community's families.”

“This investigation and today’s enforcement actions show the extraordinary multi-agency coordination and cooperation that is being brought to bear locally to take back our streets and combat gang-related violence and crime,” said Ryan L. Spradlin, the special agent in charge for Homeland Security Investigations who oversees the agency’s enforcement actions throughout northern California. “With its global reach and broad legal authorities, Homeland Security Investigations is uniquely equipped to tackle that mission and we’ll continue to work with our law enforcement partners to leverage those tools to help protect our communities from the significant public safety threat posed by criminal street gangs.”

“Firearms trafficking is one of the most pressing issues today,” 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. The safety of the public is at the core of ATF’s mission and through partnerships, law enforcement agencies create a unified front against violent crime, which make operations of this nature successful.”

The federal defendants, all Fresno residents, are as follows: Carlos Montano, 27; Filibert Chavez, 35; Robin Gill, 31; Gabriel Gomez, 26; Juan Carlos Briceno, 36; Nicholas Bolanos, 25; Daniel Villanueva, 19; Gerrick Travis Tyrell Franklin, 27; Amina Padilla, 34; Robert Lockhart, 52; Idelfonso Soto, 19; Carlos Melgar, 36; Jeni Fries, 23; Cisco Hernandez, 23; Miguel Murrillo, 22; Adolfo Jesus Mendoza, 23; Jesus Melgarejo Jr., 26; and Cesar Gutierrez, 24. All are in custody except for Gabriel Gomez, Daniel Villanueva and Gerrick Travis Tyrell Franklin.

The charges are the product of an investigation by the DEA, FBI, HSI, ATF, the Fresno Police Department, the Fresno County Sheriff’s Office, and the Multi-Agency Gang Enforcement Consortium (MAGEC) with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Kimberly A. Sanchez and Jeffrey Spivak are 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 currently charged, if convicted, certain federal defendants face a mandatory minimum of ten years in prison and up to life in prison, while others face a minimum of five years in prison and up to a maximum of 40 years in prison for the conspiracy to distribute methamphetamine depending on the quantity of drugs involved; 20 years in prison and a $1 million fine for possession of a controlled substance with intent to distribute; 10 years in prison and a $250,000 fine for the charge of being a felon in possession of a firearm, the charge of possession of an unregistered firearm, the charge of interstate transportation for the purposes of prostitution; and five years in prison and a $250,000 fine for using a facility of interstate commerce to promote prostitution or for conspiracy to deal firearms without a license. 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. — Matthew Gene Ballard, 38, of Manteca, was sentenced on Friday, September 8, 2017, by U.S. District Judge Garland E. Burrell Jr. to six years and three months in prison for executing a bank fraud and identity theft scheme and for numerous violations of his supervised release for a prior conviction, U.S. Attorney Phillip A. Talbert announced.

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

Ballard pleaded guilty to the offenses on February 10, 2017.

According to court documents, Ballard had been released from federal prison on March 27, 2015, after serving three years in prison for similar offenses and was on supervised release. Between July 2015 and April 2016, Ballard, working with others, obtained stolen U.S. Mail and stolen property, and using the identification information and mail contents, made counterfeit identifications. Ballard used the identities to fraudulently open accounts, obtain lines of credit, and get cash and goods at the expense of banks and merchants. As part of his scheme, Ballard stole his own landlord’s identity and used unauthorized credit cards to pay for personal expenses.

This case was the product of an investigation by the U.S. Postal Inspection Service with the assistance of the U.S. Probation Office. Assistant U.S. Attorney Michelle Rodriguez prosecuted the cases.

SACRAMENTO, Calif. — On August 31, 2017, a federal grand jury returned a two-count indictment against Elijah Lee Richter, 26, of Camino, charging him with distribution of a controlled substance known as 25i-nBOME that caused death, and possession of a controlled substance, U.S. Attorney Phillip A. Talbert announced.

According to the indictment, on September 8, 2012, Richter knowingly and intentionally distributed 25i-nBOME, a controlled substance analogue, which caused the death of a juvenile named A.A.

This case is the product of an investigation by the El Dorado County Sheriff’s Department, El Dorado County District Attorney’s Office, and the Drug Enforcement Administration as 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. Assistant United States Attorneys Jason Hitt and Paul Hemesath are prosecuting the case.

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

SACRAMENTO, Calif. — A federal jury today found Michael Carey Clemans, 57, of Sacramento, guilty of attempted travel and travel with intent to engage in illicit sexual conduct, conspiracy to travel with intent to engage in illicit sexual conduct, and buying of children, U.S. Attorney Phillip A. Talbert announced. 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. He gave her explicit instructions on how to photograph their naked bodies so he could determine which ones he would come to the Philippines to rape. He indicated in the chats with the Filipino woman that he was particularly interested in very young virgins. 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, including an 11-year-old girl, after requesting and receiving pornographic images of minors whom he expected to rape.

This case is 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 are prosecuting the case.

Clemans is scheduled to be sentenced on December 12, 2017, by U.S. District Judge John A. Mendez. Clemans faces a mandatory minimum sentence of 30 years in prison for the “buying children” charge, 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. — Edwin Forrest Ludwig III, 61, of Oklahoma, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to a year and a day in prison and ordered to pay $191,465 in restitution for conspiring to defraud the United States with false claims for federal tax refunds, U.S. Attorney Phillip A. Talbert announced.

According to court documents, beginning in 2011, the defendant’s son, Edwin Forrest Ludwig IV, ran a tax fraud scheme out of the California Correctional Center in Susanville that involved at least seven co-conspirators. Four of the conspirators who were incarcerated at the correctional center obtained personal identification information of other inmates. Co-conspirators who were not incarcerated took this information and prepared and filed false income tax returns with the IRS, claiming refunds that they knew to be false and to which the inmates were not entitled. Ludwig III, who was not an inmate, assisted the scheme by opening bank accounts to deposit the fraudulently obtained refunds and transferring the money for use by the incarcerated co-conspirators.
This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Unit at the California Correctional Center. Assistant United States Attorney Amy Schuller Hitchcock prosecuted the case.
To date, five co-conspirators have pleaded guilty. Four have been sentenced for their participating in this scheme, including Ludwig IV, who was sentenced to seven years in prison, and one defendant is set to be sentenced later this month. Charges are pending against one remaining co‑defendant. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Chi Meng Yang, 31, of Montague, and his sister Gaosheng Laitinen, 36, of Mt. Shasta Vista, were charged today for conspiring to commit bribery, bribery of a public official, conspiracy to manufacture marijuana, and manufacturing marijuana, U.S. Attorney Phillip A. Talbert announced.

According to the criminal complaint, on May 17, 2017, Yang met with Siskiyou County Sheriff Jon Lopey in Yreka. During the meeting, Yang offered $1 million to the Sheriff in exchange for his assistance with an interstate marijuana distribution business that Yang and others were in the process of organizing. Yang explained his role to be that of a representative for several families, himself included, that were currently cultivating marijuana in Siskiyou County. After the meeting, the Sheriff immediately reported it to the Federal Bureau of Investigation and the Drug Enforcement Administration. Federal agents asked the Sheriff to continue meeting with Yang.

At the request of, and in conjunction with the FBI and DEA, the Sheriff contacted Yang and indicated a willingness to work with him and the marijuana growers he represented. The subsequent meetings were audio and video recorded by the FBI. Laitinen attended some of those meetings. During those meetings, Yang and Laitinen talked with the Sheriff about how he could assist them. Because Yang’s offer of $1 million was contingent on Yang securing and profiting from certain out-of-state marijuana licenses, Yang and Laitinen promised to pay the Sheriff a total of $80,000 if he would exempt eight properties from the Siskiyou County ban against outdoor marijuana grows. They sought protection from raids or other law enforcement actions on these eight properties where outdoor marijuana was being grown. In furtherance of this plan, Yang and Laitinen gave the Sheriff several initial payments, totaling $10,500 in cash. These funds were immediately turned over to the FBI as evidence.

This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Siskiyou County Sheriff’s Office with assistance from the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Enforcement and Removal Operations (ERO), Bureau of Land Management (BLM), U.S. Forest Service (USFS), North State Marijuana Investigation Team (NSMIT), Tehama Interagency Drug Enforcement (TIDE), Shasta Interagency Narcotics Task Force (SINTF), Siskiyou Unified Major Investigations Team (SUMIT), and California Highway Patrol (CHP). Assistant U.S. Attorney Michael M. Beckwith is prosecuting the case.

Yang was arrested today and is scheduled to make an initial court appearance on September 1, 2017, in Sacramento. If convicted of the charges in the complaint, Yang and Laitinen face the following maximum statutory penalties: (1) five years in prison and a $250,000 fine for the conspiracy charge; (2) 10 years in prison and a $250,000 fine for the bribery charge; and (3) a minimum of five years and up to 40 years in prison and a $5 million fine for the drug charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

SACRAMENTO, Calif. — An indictment has been unsealed today that charges David L. Bonuccelli, 63, of Sacramento, with embezzlement from his employees’ retirement funds and false statements regarding those retirement funds, U.S. Attorney Phillip A. Talbert announced.

A federal grand jury returned the five-count indictment last Thursday. According to court documents, Bonuccelli is the founder and CEO of a real estate and investment advisory corporation that provides retirement benefit plans for its employees. On December 4, 2012, Bonuccelli embezzled approximately $517,000 from one of his firm’s employee retirement funds, protected under the Employee Retirement Income Security Act of 1974 (ERISA). Bonuccelli also made false statements on forms required under ERISA regarding the 2011 and 2012 end-of-year balances, indicating that certain transfers had not occurred when in fact they had.

This case is the product of an investigation by the Department of Labor – Employee Benefits Security Administration. Assistant U.S. Attorney Matthew M. Yelovich is prosecuting the case.

If convicted, Bonuccelli faces a maximum statutory penalty of five years in prison and a $250,000 fine as to 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. — Two long-time IRS employees pleaded guilty today to aiding others in the preparation of false tax returns, and making their own fraudulent tax returns as an employee of the United States, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Della Ornelas, 49, and Randall Ruff, 53, both of Fresno, are a married couple. Between 2005 and 2012, they filed false tax returns for family and friends that added dependents, generating large tax refunds that were diverted into bank accounts they controlled, sometimes without the knowledge of the taxpayer. They also filed false tax returns for themselves by fraudulently adding dependents. Over a seven-year period, Ornelas defrauded the United States of approximately $76,897 and Ruff defrauded the United States of approximately $53,227.

This case is the product of an investigation by the Treasury Inspector General for Tax Administration and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Mark J. McKeon is prosecuting the case.

Ornelas and Ruff are scheduled to be sentenced by U.S. District Judge Dale A. Drozd on November 13, 2017. They each face a maximum statutory sentence of three years in prison for aiding and abetting false tax returns and five years in prison for making fraudulent tax return by an employee of the United States. 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. — Two Bay Area companies and the two individuals who head them will pay approximately $2 million to resolve federal and state False Claims Act allegations that they knowingly overbilled a program designed to serve Californians with developmental disabilities, U.S. Attorney Phillip A. Talbert announced today.

A federal lawsuit, filed by whistleblower Beverly McCaffery, contends that Alternative Learning Center, its president Alice Soard, Adult Educational Technologies Inc., and its executive director Wendell James defrauded California’s Department of Developmental Services (DDS) by billing for services that were never provided. The lawsuit was brought in the Eastern District of California because the false claims were submitted to the DDS in Sacramento.

“These defendants took advantage of a government program designed to help some of our most vulnerable citizens, diverting funds over a number of years that may have been used to provide services to others in need,” said U.S. Attorney Talbert. “My office will continue to work closely with our federal and state partners to safeguard the integrity of this important program, and results like this one help accomplish that objective. We encourage anyone who has additional information about abuse of this program to come forward.”

“It is reprehensible that Adult Educational Technologies, Alternative Learning Center, Alice Soard, and Wendell James charged Medicaid for services that were never provided to developmentally disabled patients — services that were badly needed,” said Special Agent in Charge Steven J. Ryan of U.S. Department of Health and Human Services Office of Inspector General, San Francisco Regional Office. “Such repulsive scams, which cheat both patients and taxpayers, will not be tolerated. Thanks to our hardworking investigators and our law enforcement partners, these companies and executives will pay dearly for their heartless behavior.”

DDS administers programs that enable individuals with developmental disabilities to live in the community instead of being institutionalized. DDS contracts with nonprofit regional centers around the state, who in turn contract with “vendors,” such as Alternative Learning Center and Adult Educational Technologies Inc., who commit to provide in-home support to these individuals, including personal care and homemaking.

According to the settlement agreement, Alternative Learning Center and Adult Educational Technologies Inc. were authorized to provide services in Alameda and Contra Costa counties. It is alleged that the defendants submitted claims for payment for services that were never performed, fraudulently retained overpayments to which they knew they were not entitled and intentionally falsified documents to reflect services that were never actually performed in order to provide support for their false claims for payment.

The terms of the settlement require each defendant to make substantial up-front payments to the United States and California, along with additional payments over a period of time, plus interest. Alternative Learning Center will pay a total of $562,600, Adult Educational Technologies, Inc. will pay $322,500, Alice Soard will pay $159,400, and Wendell James will pay $107,500. Alice Soard has also agreed to sell her primary residence and remit the proceeds to the government.

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. Ms. McCaffery will receive a 20 percent share of all settlement proceeds paid to the United States.

This case was investigated by the United States Office of Inspector General of the U.S. Department of Health and Human Services, the Federal Bureau of Investigation, and the California Department of Justice, Office of the Attorney General, Bureau of Medi-Cal Fraud and Elder Abuse. Assistant U.S. Attorney Colleen M. Kennedy handled the case.

SACRAMENTO, Calif. — Omar Kabiljagic, 46, of Sacramento, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to four years and three months in prison for filing fraudulent tax returns, U.S. Attorney Phillip A. Talbert announced.

According to evidence presented during a four-day trial, Kabiljagic submitted a series of fraudulent tax returns to the Internal Revenue Service falsely reporting that in 2008 and 2009, he earned interest from “original issue discount” (OID) bonds. He falsely reported that this interest income had been withheld by various financial institutions, and claimed that this entitled him to hundreds of thousands of dollars in tax refunds. The IRS repeatedly warned Kabiljagic that his filings were frivolous and that he risked criminal charges if he persisted. Nevertheless, on June 25, 2009, Kabiljagic filed two more tax returns that falsely claimed refunds totaling $863,520.

Kabiljagic’s co-defendant, Suvada Mahmutovic, 67, pleaded guilty to filing a false claim using the same scheme. One of Mahmutovic’s claims resulted in a fraudulent refund of more than $263,000, which Kabiljagic helped her cash. On July 6, 2017, Mahmutovic was sentenced to 21 months in prison.

“Despite being warned several times, Mr. Kabiljagic repeatedly and persistently filed false tax returns with IRS,” said Michael T. Batdorf, Special Agent in Charge IRS Criminal Investigation. “When his scheme finally worked, he helped his co-defendant open a bank account, carried the cash home in a duffle bag, and wired it overseas through his own bank accounts. Once again this shows the severe nature of fraudulent tax refund schemes perpetrated against the IRS. Today’s sentencing sends a clear message that those involved in these types of schemes will be held accountable for their crimes.”

On April 4, 2017, a jury found Kabiljagic guilty of two counts of filing fraudulent tax returns. In sentencing Kabiljagic, Judge Burrell found that Kabiljagic had obstructed justice by testifying falsely at trial.

This case was the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorneys Matthew G. Morris and Amy Schuller Hitchcock prosecuted the case.

FRESNO, Calif. — A Fresno bookkeeper and her associate were arrested today for their roles in embezzling over $1 million from a Fresno business, U.S. Attorney Phillip A. Talbert announced.

On Thursday, a federal grand jury returned a 15-count indictment against Brandi Marshall, 41, and Daniel Barrios Jr., 37, charging them with conspiracy, wire fraud, bank fraud and money laundering.

According to court documents, Marshall was employed as the company’s bookkeeper between October 2014 and March 2016 and was responsible for, among other things, receiving and depositing payment checks from customers to pay their invoices. During that time, she and Barrios misappropriated more than 100 checks and fraudulently deposited them into Barrios’s personal bank account. Marshall and Barrios used money derived from the fraudulently deposited checks for personal purchases, including more than $35,000 to purchase and accessorize a 2016 Ford Mustang GT, and more than $25,000 for a 2012 Dodge Challenger. Marshall created fictitious entries in the company’s computer accounting application to attempt to conceal the embezzlement. Together, Marshall and Barrios embezzled more than $1 million dollars.

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.

If convicted, Marshall and Barrios face a maximum statutory penalty of 30 years in prison and a $1 million fine for each of the wire fraud and bank fraud charges, and 10 years in prison and a $250,000 fine for conspiracy to launder money. 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. — Sherrell Davis, 43, of Benicia, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 18 months in prison and ordered to pay $210,320 in restitution for submitting false claims for tax refunds, U.S. Attorney Phillip A. Talbert announced. Davis was ordered to surrender to start serving her sentence on October 20, 2017.

According to court documents, from February 2011 through May 2013, Davis repeatedly engaged in tax fraud by submitting over 50 fraudulent claims for tax refunds in the names of other people to the Internal Revenue Service. The tax returns used fraudulent W-2 tax forms listing false wages and false withholdings in order to generate tax refunds to which the people named on the returns were not entitled. The fraudulent returns also claimed tax credits to which the taxpayers were not entitled, including the Earned Income Credit, the American Opportunity Credit, and the Making Work Pay Credit. In furtherance of her tax fraud scheme, Davis took over bank accounts in the name of another person and used those accounts to receive proceeds from the fraud.. In all, Davis submitted fraudulent tax returns seeking over $350,000 in tax refunds, of which at least $210,320 were paid out by the IRS.

“We want everyone who files a tax return to take advantage of the deductions and credits to which they are entitled by law, however, no one is entitled to defraud the United States and the American taxpayers,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “For approximately three years, Ms. Davis repeatedly filed numerous false income tax returns with the IRS claiming refunds based on false information. IRS CI will continue to aggressively pursue those who file false tax returns to claim refunds to which they are not entitled.”

Attempted tax refund fraud has been a significant problem in recent years, leading to increased efforts by the IRS and IRS Criminal Investigation to combat it. For example, the IRS has estimated that from 2011 through October 2014, it stopped 19 million suspicious returns and blocked more than $63 billion in fraudulent refunds. Many such tax refund fraud schemes depend on the use of stolen identities. For more information about tax-related identity theft, including warning signs, how to reduce your risk, and what to do if you suspect you have become a victim, visit the IRS Taxpayer Guide to Identity Theft at https://www.irs.gov/uac/taxpayer-guide-to-identity-theft.

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

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Christopher L. Crawford, 36, of Houston, Texas, charging him with online enticement of a minor and traveling in interstate commerce to engage in illicit sexual conduct with minor, U.S. Attorney Phillip A. Talbert announced.

According to the indictment, between March 7, 2017, and April 21, 2017, Crawford enticed a minor online to engage in sexual activity, and between April 18, 2017, and April 21, 2017, Crawford traveled from Harris County in Texas to Sacramento County for the purpose of engaging in illicit sexual conduct with a minor.

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

If convicted of the federal charges, Crawford faces a mandatory minimum of 10 years in prison and a maximum statutory penalty of life 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.

FRESNO, Calif. — Jack Mootz, 63, of Sacramento, formerly of Fresno, was sentenced on Wednesday to nine years in prison for receipt and distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.

U.S. District Judge Dale A. Drozd also imposed a term of supervised release of 15 years during which Mootz will be required to register as a sex offender and his access to the internet, computers, and children will be restricted.

According to court documents, a law enforcement officer in Plano, Texas detected that Mootz was sharing thousands of images of child pornography through the BitTorrent network. Most of the images depicted children as young as infants and toddlers being sexually abused by adults.

Mootz had been employed in numerous school districts throughout Central California as a teacher, often working with special needs students. Mootz had been living in Fresno but relocated to Sacramento after a search warrant was executed at his residence. Mootz was indicted on March 9, 2017, and pleaded guilty without a plea agreement on May 31, 2017.

This case was the result of an investigation by the Federal Bureau of Investigation offices in Dallas, Texas and Fresno, California as well as the Plano Police Department. Assistant U.S. Attorney David Gappa prosecuted the case.

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

FRESNO, Calif. — Marie E. Sherrill, 56, of Porterville, pleaded guilty today to one count of wire fraud and one count of aiding the preparation of a false tax return, U.S. Attorney Phillip A. Talbert announced.

According to the plea agreement, Sherrill promoted a fraudulent investment program that promised the victims of the 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 invested. Instead, it was used to pay Sherrill’s personal expenses, including gambling, and to make lulling payments to earlier investors to make them believe their money was earning a profit. As a result of this scheme, victims were defrauded of at least over $1.3 million.

In addition to the investment fraud scheme, Sherrill also committed tax fraud. 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, causing a loss to the IRS of approximately $255,900.

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

Sherrill is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on November 13, 2017. Sherrill faces a maximum statutory penalty of 20 years in prison for wire fraud and three years in prison for the tax charge. She also faces a $250,000 fine on 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. — Frank Luo, 49, of Las Vegas, Nevada, was sentenced today by U.S. District Judge Kimberly J. Mueller to three years in prison for wire fraud related to a nationwide casino and credit card fraud scheme, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between August 2008 and August 2014, Luo 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. Luo, working in concert with co-defendant Vivian Wang 54, of Lilburn, Georgia, 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. Luo and Wang recruited “clients” to participate in the scheme to induce the casinos and credit card companies to part with even more money under fraudulent pretenses.

Luo and his co-schemers 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, Luo and his 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.

Charges are pending against Wang. She is scheduled for trial in March 2018. The charges against her are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Bakersfield, Calif. —Edward Padilla, 56, of Bakersfield, was sentenced today to 21 months in prison for his embezzlement of union funds, U.S. Attorney Phillip A. Talbert announced.

Chief U.S. District Judge Lawrence J. O’Neill also ordered Padilla to pay $168,780.22 in restitution to the union.

According to court documents, from at least September 2012 to on or about December 31, 2014, while Padilla was the Secretary Treasurer/Business Manager of the Bakersfield office of a construction workers’ union, he embezzled approximately $168,780.22 from the union in the form of unearned salary checks, unauthorized sick leave payments, and personal expenditures on his union credit cards.

This case was the product of an investigation by the United States Department of Labor, Office of Labor-Management Standards. Assistant United States Attorney Angela Scott prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Gabriel Sanchez-Madris, 41, and Mark Espinoza, 26, charging them with manufacturing marijuana and conspiring to do the same, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Sanchez-Madris and Espinoza were arrested by law enforcement on August 1, 2017, following a search of a marijuana-cultivation site in the Cub Creek area of Lassen National Forest in Tehama County. The site contained approximately 2,640 marijuana plants.

This case is the product of an investigation by the United States Forest Service, the Tehama County Sheriff’s Office, and the California Department of Fish and Wildlife. 

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

FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Uriel Madrigal-Perez, 23, of Bakersfield, and Silviano Madrigal-Herrera, 27, of Perris, charging them with cultivation of marijuana and conspiring to cultivate marijuana, U.S. Attorney Phillip A. Talbert announced.

According to court documents, both men were arrested in the early morning hours of August 4, 2017, as they left an area that was used to drop off supplies and personnel for a remote clandestine marijuana grow in the in the Upper Kern Canyon area of Sequoia National Forest in Tulare County. The grow was found to contain in excess of 1,000 marijuana plants.

This case is the product of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.

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

SACRAMENTO, Calif. — Markell Darrell Davis, 31, of Solano County, was sentenced today by United States District Judge Morrison C. England Jr. to 10 years in prison for being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on February 17, 2014, Davis was involved in a shooting in a residential neighborhood in Fairfield. Davis was driving on a residential block when a car pulled alongside him and an occupant of that car fired shots at Davis, then drove away. Davis returned fire with his .40-caliber Glock semi-automatic pistol in the direction of the other car as it drove away. One of the bullets that Davis fired struck and injured a bystander. At the time of the shooting, Davis was a convicted felon who was prohibited by law from possessing a firearm.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fairfield Police Department. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.

FRESNO, Calif. — A federal grand jury returned an indictment today charging six defendants in a scheme to distribute controlled substances throughout the United States via the dark web, U.S. Attorney Phillip A. Talbert announced.

William James Farber, aka Bill Danzerian, 37, of Los Angeles, and Bryan Anthony Lemons, 29, of Los Angeles, were charged with conspiracy to possess and distribute controlled substances and conspiracy to launder money. Richard Thomas Martinsen, 29, of Studio City; Michael Angelo Palma, 22, of Los Angeles; Michele Pickerell, 47, of Altadena; and Faysal Mustafa Alkhayat, 31, of Woodland Hills, were charged with conspiracy to possess and distribute controlled substances.

According to court documents, Farber and his co-conspirators, operating under the name PureFireMeds, sold narcotics including marijuana, cocaine, oxycodone, hydrocodone, psilocybin, MDMA (Ecstasy), LSD, Xanax, and ketamine on dark web marketplaces, including Silk Road and Pandora. After Silk Road was shut down by law enforcement in October 2013, it is alleged that Farber and his co-conspirators began selling on the AlphaBay dark web marketplace under the name HumboldtFarms. It became one of the largest vendors on AlphaBay, allegedly completing more than 78,000 orders of marijuana on the site to customers throughout the United States and the world. Palma, Martinsen and others allegedly used Pickerell’s home to assemble an estimated 1,000 parcels of marijuana a week that were mailed throughout the United States. Farber and Lemons allegedly exchanged at least $7 million in bitcoin for cash that was allegedly the proceeds of the HumboldtFarms drug distribution.

Dark web sites such as AlphaBay operate on “The Onion Router” or “TOR” network, a special network of computers on the internet, distributed around the world, that is designed to conceal the true Internet Protocol (IP) addresses of the computers accessing the network, and, thereby, the locations and identities of the network’s users and computer servers hosting the websites, which are referred to as “hidden services.” The “hidden services” have complex web addresses, generated by a computer algorithm, ending in “.onion” and can only be accessed through specific web browser software designed to access the TOR network. AlphaBay was shut down by U.S. law enforcement on July 5, 2017, and is no longer in operation.

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Postal Inspection Service in Los Angeles, the Los Angeles Police Department, and the Bakersfield Police Department with assistance from the Los Angeles Joint Regional Intelligence Center. Assistant U.S. Attorneys Grant B. Rabenn and Ross Pearson are 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.

If convicted of conspiracy to possess controlled substance, all six defendants face a maximum statutory penalty of 40 years in prison and a $5 million fine. If convicted of conspiracy to distribute controlled substance, each defendant faces a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted of the money laundering conspiracy, Farber and Lemons each face a maximum statutory penalty of 20 years in prison and a fine up to $500,000 or up to twice the value of the property involved in the transactions, whichever is greater. Any sentence, however, would be determined at the discretion of the district court after considering any applicable statutory factors and the Federal Sentencing Guidelines. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned a seven-count indictment today against Omar Manuel Ramirez, 34, of Fresno, charging him with conspiracy to distribute marijuana, manufacture of marijuana, money laundering conspiracy, and money laundering, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Ramirez grew marijuana in Fresno County and shipped it to states around the country, including Illinois, Virginia, and North Carolina. Ramirez’s customers deposited their payments for the marijuana into a bank account in Ramirez’s name. Typically within a day, Ramirez withdrew the deposits in Fresno. Over the course of two and a half years, Ramirez and co-conspirators used this technique to launder more than $800,000 in proceeds from selling marijuana.

This case is the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service Criminal Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Ross Pearson is prosecuting the case.

If convicted, Ramirez faces a mandatory minimum penalty of five years in prison, a maximum statutory penalty of 40 years in prison, and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Guillermo Rubio-Alvarado, 43; Omar Rubio-Alvarado, 28; Sebastian Rubio-Aboyte, 23, all of Sinaloa, Mexico; and Fortino Chavarin-Parra, 19, of Jalisco, Mexico, charging them with conspiring to manufacture marijuana and manufacturing marijuana, and damaging public lands, U.S. Attorney Phillip A. Talbert announced.

According to court documents, all four defendants were arrested by law enforcement on July 31, 2017, following a search of a marijuana-cultivation site in the Lassen National Forest in Tehama County. Law enforcement eradicated approximately 15,000 marijuana plants at this cultivation site. A large quantity of additional plants was left undisturbed after agents discovered they were allegedly contaminated with Carbofuran (Furadan), a dangerous neurotoxic pesticide that has been banned in the United States, Canada, and the European Union.

This case is the product of an investigation by the United States Forest Service, the Tehama County Sheriff’s Office, and the California Department of Fish and Wildlife. Assistant U.S. Attorney Katherine T. Lydon is prosecuting the case.

If convicted of the marijuana charges, the defendants face a mandatory minimum penalty of 10 years in prison, and a maximum penalty of life in prison and a $10 million fine. If convicted of damaging public lands, all four defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine.

Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. The charges are only allegations; the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Abel Toledo-Villa (Toledo), 35, a native and citizen of Mexico, was sentenced today by Chief U.S. District Judge Lawrence J. O’Neill to five years in prison, U.S. Attorney Phillip A. Talbert announced.

Toledo pleaded guilty in May to conspiring to manufacture, distribute and possess with intent to distribute 3,850 marijuana plants grown in the Sequoia National Forest in Kern County. When law enforcement officers searched the grow site, Toledo was found leaving the area in a vehicle that contained about 8.5 pounds of processed marijuana, fertilizer, a rifle, and 106 rounds of ammunition.

At the grow site, agents found significant deforestation, large piles of trash, discarded chemical bottles, and miles of plastic irrigation lines. During the course of the offense, Toledo caused damage to public land and natural resources in the amount of $5,233. In sentencing Toledo, Judge O’Neill ordered Toledo to make restitution to the U.S. Forest Service in that amount.

This case was the product of an investigation by the U.S. Forest Service, the 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 prosecuted the case.