Eastern District of California

SACRAMENTO, Calif. — An Elk Grove man was arrested today on charges of sex trafficking of a child, U.S. Attorney Phillip A. Talbert announced.

On June 8, 2017, a federal grand jury in Sacramento returned a sealed indictment against Abdul Basier Hashimi, 25, charging him with one count of sex trafficking of children. The indictment was unsealed today after Hashimi’s arrest.

According to court documents, between August 2014 and November 2014, Hashimi recruited, harbored, transported, and advertised a minor victim, knowing that the minor would be caused to engage in prostitution.

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

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

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

SACRAMENTO, Calif. — On Thursday, June 16, 2017, a grand jury brought an eight-count indictment against Sacramento residents Latomba Bishop, 32; Joshua Yadon, 33, and Norman Thompson, 36, charging them with conspiracy to obtain mail by fraud, access device fraud, mail fraud, and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

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

This case is the product of an investigation by the United States Postal Inspection Service with assistance from the Davis Police Department, Sacramento County Probation, and the Woodland Police Department. Assistant U.S. Attorney Jeremy J. Kelley is prosecuting the case.

If convicted, Thompson and Yadon face a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted of the mail fraud, Bishop faces a maximum statutory penalty of 20 years in prison and a $250,000 fine, and if convicted of the aggravated identity theft, she faces a mandatory two-year prison sentence consecutive to any other sentence. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — On Thursday, June 15, 2017, a grand jury returned a two-count indictment against Augustine Amon Reyes, 31, of Bakersfield, charging him with receipt and possession of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to the indictment, between October and November 2016, Reyes, through the use of a cellphone and a micro SD memory card, received and possessed over 80 sexually explicit images of prepubescent minors being sexually abused.

This case is the product of an investigation by the Bakersfield Office of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Corrections and Rehabilitation with assistance from the U.S. Marshals Service. Assistant U.S. Attorney Brian W. Enos is prosecuting the case.

If convicted, Reyes faces a penalty of 15 to 40 years in prison and a $250,000 fine for the receipt of child pornography charge, as well as 10 to 20 years in prison for possession of child pornography. 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. — U.S. District Judge Dale A. Drozd sentenced Juan Penaloza-Ramirez (Penaloza), 46, a native and citizen of Michoacán, Mexico, residing in Taft, today to seven years and three months in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana that was grown at three separate marijuana cultivation sites in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.

In sentencing Penaloza, Judge Drozd ordered the forfeiture of the seized cash, firearms and ammunition seized during the investigation, and he ordered Penaloza to pay $10,198 in restitution to the U.S. Forest Service for the damage to public land and natural resources caused by his cultivation activities.

Penaloza’s sentence follows his guilty plea earlier this year. According to court documents, Penaloza employed growers, deliverymen, and others to cultivate marijuana in Tulare and Kern Counties in the Sequoia National Forest. The grow sites were located at Fay Creek and Brush Creek, tributaries of the Kern River, and the Needles, a series of massive granite rock formations near the North Fork of the Kern River. Every winter, Penaloza traveled to Mexico to recruit people to grow marijuana on public lands in the United States.

At the Fay Creek grow site, law enforcement officers seized 3,151 marijuana plants. Springs were dammed and diverted to irrigate the marijuana plants and large amounts of trash were scattered throughout, including in a flowing stream.

The Brush Creek grow site contained 2,719 marijuana plants. To make room for the marijuana plants, the growers had eradicated new vegetation and trees that sprouted after the 2002 McNally Fire. Law enforcement officers found large piles of trash stuffed between boulders and buried along a stream. The officers also found toxic pesticides and fertilizers spread throughout the 10-acre site.

The Needles grow site contained 2,608 marijuana plants. In addition to the presence of toxic chemicals and waste, officers found that the water source for the marijuana plants was a spring that drains into the Upper Kern River.

Law enforcement officers also seized marijuana cultivation equipment and supplies, over $7,000 in cash, 16 firearms and over 2,000 rounds of ammunition during follow-up searches of the residences of Penaloza and co-defendant Russell Lee Riggs, 69, of Weldon, another supplier to the Fay Creek site. Riggs pleaded guilty last week and is scheduled for sentencing on September 11, 2017.

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

SACRAMENTO, Calif. — Charles V. Stanley Jr., 63, of Southern California, was arrested on Wednesday in Los Angeles on a 15-count indictment returned by a federal grand jury in Sacramento charging him with conspiracy to commit bank fraud, mail fraud and wire fraud, as well as separate counts of bank fraud, wire fraud and mail fraud, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Stanley was the owner and operator of a debt collection company called Creditor Specialty Service, Inc. (CSS) located in Acton, California and with agents throughout California and elsewhere. Various financial institutions and other companies contracted with CSS to collect debts. At Stanley’s direction, CSS employees collected money from the debtors but underreported the amounts they actually collected. Stanley diverted some of the unreported proceeds for his own personal spending and to pay other clients to whom CSS owed money. Stanley also continued to collect money from debtors of one financial institution even after that institution terminated its contract with CSS. Stanley also caused CSS to file lawsuits or settle with debtors without client authorization. It is alleged that because of Stanley’s conspiracies and schemes, CSS’s clients and debtors lost several millions of dollars.

Credit Unions based in Folsom, Sacramento and Bakersfield contracted with CSS to collect debts from some of its customers.

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 Todd A. Pickles is prosecuting the case.

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

SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Sergey Shchirskiy, 41, of Sacramento, to seven years and 10 months in prison for his participation in two mortgage fraud schemes and one tax fraud scheme, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Shchirskiy pleaded guilty to one count of wire fraud in each of the two mortgage fraud cases, as well as one count of conspiracy to defraud the United States and one count of aggravated identity theft in the third tax fraud case.

According to the plea agreement, Shchirskiy was a loan processor in one mortgage fraud scheme (2:11-cr-514). Between April 2007 and November 2007, the co-conspirators used straw buyers to buy properties and then take out Home Equity Lines of Credit on the houses using fraudulent documents and statements. Shchirskiy helped to create the fraudulent supporting documents. All of the properties were foreclosed on, resulting in at least $1.5 million in losses to lenders.

According to the plea agreement in the second mortgage fraud scheme (2:12-cr-060), in April 2007, Shchirskiy recruited straw buyers to purchase a houses based on fraudulent loan applications. The applications gave false information about the buyer’s employment, income, assets, and intention to occupy the properties. The properties were foreclosed upon and resulted in a loss of more than $1.2 million to lenders.

According to the plea agreement in the tax fraud scheme (2:14-cr-198), between March 2011 and April 2011, Shchirskiy conspired with others to obtain false tax refunds by submitting fraudulent claims using the identities of various individuals, at least eight of which were stolen. Shchirskiy claimed Earned Income Tax Credit based on false claims of employment from California’s In-Home Supportive Services program. Shchirskiy and his co-conspirators made approximately 80 attempts to file fraudulent tax returns, attempting to receive $661,286 in fraudulent returns from the Internal Revenue Service. The IRS ultimately issued approximately $88,728 in fraudulent refunds.

These cases were the product of investigations by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Heiko Coppola and Michele Beckwith prosecuted the cases.

SACRAMENTO, Calif. — U.S. District Judge Troy L. Nunley sentenced Andre Antonio Walters, 37, of Long Beach, today to six years and one month in prison and a $15,000 fine for four counts of mail fraud for his role in a significant unemployment benefit fraud scheme, U.S. Attorney Phillip A. Talbert announced.

According to evidence presented at trial in August 2016, Walters was a “manager” in a scheme to defraud the State of California of unemployment benefits from approximately 2008 to 2011. The scheme involved registering fictitious businesses with the state, listing “employees” as having earned wages at those fictitious businesses when in fact they had never worked there, and then filing for unemployment benefits on behalf of those “employees.” Walters recruited people to pose as these “employees,” managed their unemployment claims once filed, and split the resulting unemployment benefits checks that were mailed out of West Sacramento. According to the indictment, the scheme resulted in at least $5 million in fraudulently obtained unemployment benefits being disbursed by the state.

U.S. Attorney Talbert stated: “The funds set aside for unemployment insurance and disability insurance are intended to benefit Californians who have earned the right to receive those benefits. Fraud schemes that damage and deplete the fund undermine the benefit system and cheat those whom the funds are intended to protect. We will continue to work with our law enforcement partners to investigate and stop fraud schemes like this that harm California workers.”

“Andre Walters and Michael Taylor Jr., who was sentenced last week, created several fictitious employers and then used the names of approximately 500 nonexistent employees to collect more than $5 million in unemployment insurance benefits intended to provide relief to unemployed workers. We will continue to work with our state and federal law enforcement partners to preserve the integrity of all Department of Labor enforcement programs,” said Abel Salinas, Special Agent in Charge, Los Angeles Region, U.S. Department of Labor, Office of Inspector General.

“Today’s sentencing sends a loud, clear message: we will not tolerate those who engage in unemployment benefits fraud,” said Patrick W. Henning, Director of the Employment Development Department (EDD). “We’re proud to team up with the U.S. Attorney’s Office and the U.S. Department of Labor, Office of Inspector General to stop these criminals. We all share a common commitment: to ensure unemployment benefits go to the unemployed who need the assistance — not to thieves who believe they are above the law.”

This case was the product of an investigation by the U.S. Department of Labor, Office of Inspector General and the California Employment Development Department. Assistant U.S. Attorneys Jared C. Dolan and Matthew M. Yelovich prosecuted the case.

Walters is the sixth defendant to be sentenced for participating in this fraud scheme. Kenneth Kim Parks, 54, of Pomona, and of Long Beach, was sentenced to five years in prison. Gregory Bart Martin, 36, of Lakewood, was sentenced to 18 months of probation, Michael Ray Taylor Sr., 52, of Fontana, was sentenced to three years in prison; and Michael Ray Taylor Jr., 32, of El Monte, was sentenced to 15 months in prison.

FRESNO, Calif. — A federal grand jury returned an indictment today against two Kern County residents, charging them in a conspiracy to distribute heroin, cocaine, and methamphetamine, U.S. Attorney Phillip A. Talbert announced.

Mario Alvarez-Muniz, 49, a citizen of Mexico, residing in Taft, and Darrell Leon Jennings, 49, of Bakersfield, were charged with conspiring to distribute heroin, cocaine and methamphetamine and possession with intent to distribute heroin and cocaine. Alvarez-Muniz was also charged with distributing methamphetamine.

According to court documents, Alvarez-Muniz, a self-employed tow truck driver, obtained heroin, cocaine, and methamphetamine from Mexico for distribution here. Jennings is a self-employed truck driver who assisted Alvarez-Muniz in transporting heroin and cocaine to Bakersfield for shipment to Chicago. Alvarez-Muniz was arrested in Bakersfield after delivering two pounds of methamphetamine during an undercover drug transaction and orchestrating a shipment of six kilograms of heroin and 11 kilograms of cocaine seized from Jennings’ truck.

This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the U.S. Drug Enforcement Administration, the California Highway Patrol, the Bakersfield Police Department, and the Kern County Probation Office. The OCDETF Program was established in 1982 and is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. Assistant U.S. Attorneys Karen Escobar and Jeffrey Spivak are prosecuting the case.

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

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

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 Kern County in the Sequoia National Forest. He also received processed marijuana from growers at the site. Springs were dammed and diverted to irrigate the marijuana plants and large amounts of trash were scattered throughout, including in a flowing stream. Law enforcement officers also seized marijuana cultivation equipment and supplies, 16 firearms and over 2,000 rounds of ammunition at the site and during follow-up searches of Riggs’ residence and that of co‑defendant Juan Penaloza-Ramirez, 46, a citizen of Mexico.

Fay Creek supports a variety of ecosystems and resources, including riparian habitat supporting trout, wildflowers and grasses, and willow, alder and cottonwood trees. Fay Creek also serves as the primary drinking water source for many wildlife in the area.

In pleading guilty, Riggs agreed to pay $1,719 to the U.S. Forest Service for the damage to public land and natural resources caused by the cultivation activities. He also agreed to the forfeiture of the seized firearms and ammunition.

Riggs is scheduled for sentencing before U.S. District Judge Dale A. Drozd on September 11, 2017. Penaloza-Ramirez previously pleaded guilty and is scheduled for sentencing on June 19, 2017. Both men face a mandatory minimum statutory penalty of five years in prison and a maximum statutory penalty of 40 years in prison, along with a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Eduardo Zavala Lopez, 26, of Sylmar, charging him with possessing fentanyl with the intent to distribute, United States Attorney Phillip A. Talbert announced.

According to court documents, an undercover officer negotiated with Lopez and a source in Mexico to purchase China white heroin for $34,000 per kilogram. Lopez said the heroin was “synthesized.” Lopez traveled to Kingsburg where he met with the undercover officer. Ultimately, two kilograms were found hidden in the left rear passenger door and law enforcement later determined that the substance was a mixture of fentanyl and ketamine.

Fentanyl is a potent and highly toxic synthetic opioid that poses a significant health risks including death.

This case is the product of an investigation by the Fresno Methamphetamine Task Force and the Fresno Area Surveillance Team, made up of officers from the Fresno Police Department, the Fresno County Sheriff’s Department, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Highway Patrol, and the Kings County Sheriff’s Department. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.

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

SACRAMENTO, Calif. — Crystal Candiece Cooper, 35, pleaded guilty on Tuesday to executing a bank fraud scheme with contents of stolen U.S. Mail, aggravated identity theft, and possession of stolen U.S. Mail, U.S. Attorney Phillip A. Talbert announced.

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

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

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

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

Cooper is scheduled to be sentenced on September 12, 2017, by U.S. District Judge John A. Mendez. Cooper faces a maximum statutory penalty of up to 30 years in prison and a $1 million fine for the bank fraud conviction, a mandatory two years in prison consecutive to any other term and a $250,000 fine for the aggravated identity theft, and five years in prison and a $250,000 fine for possession of stolen mail. 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. — Algernon Tamasoa, 28, of Sacramento, was sentenced today by U.S. District Judge Kimberly J. Mueller to eight years in prison for his participation in a methamphetamine trafficking organization and for selling dangerous assault rifles, U.S. Attorney Phillip A. Talbert announced.

On January 11, 2017, Tamasoa pleaded guilty to conspiracy to distribute methamphetamine and dealing firearms without a license.

According to court documents, Tamasoa conspired with co-defendant Epati Malauulu, 42, of Suisun City, and others to purchase high quality methamphetamine in California and ship it into Hawaii where it sold at a large profit on Oahu, an area hit particularly hard by the crystal methamphetamine epidemic.

Co-defendants John Ortiz, 44, of Vallejo; and Francisco Poloai, 45, of Dixon, were also charged in the drug conspiracy in the Eastern District of California. Ultimately, the drug investigation led to 44 defendants being charged in the District of Hawaii and four being charged in the Northern District of California (San Francisco).

According to court documents, between February 6, 2015, and May 27, 2015, Tamasoa sold 11 assault rifles to an undercover agent. Several of the rifles had high-capacity magazines. Tamasoa provided ammunition in addition to the firearm in the first four firearm sales. These assault weapons shoot high-velocity bullets that go through the bulletproof vests that most law enforcement officers wear. They also can go through walls and doors in an urban setting. Two of the assault rifles were manufactured by unlicensed gun makers and lacked serial numbers, making them untraceable.

On April 26, 2017, Malauulu was sentenced to 20 years in prison, and on May 17, 2017, Ortiz was sentenced to 10 years in prison for the methamphetamine trafficking activity. Poloai, the sole remaining defendant in the drug trafficking case, is scheduled for trial on September 25, 2017. The charges against Poloai are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Solano County Multi-Jurisdictional Methamphetamine Enforcement Team, the Solano County Sheriff’s Office, the Fairfield Police Department, the Vallejo Police Department, the San Francisco Police Department, the Honolulu Police Department, and others. Assistant United States Attorney Richard Bender is prosecuting the Sacramento case.

This case is the product of an investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.

SACRAMENTO, Calif. — Juan Carlos Maldonado, 22, pleaded guilty today to 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 used a sport utility vehicle with its plates removed and followed a U.S. letter carrier in a Rancho Cordova neighborhood. 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 June 21, 2016 robbery.

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 is 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 is prosecuting the case.

Maldonado is scheduled to be sentenced by U.S. District Judge John A. Mendez on September 12, 2017. Maldonado faces a maximum statutory penalty of up to 30 years in prison and a $1 million fine for bank fraud, a mandatory two years in prison consecutive to any other term for aggravated identity theft, and up to 10 years in prison and a $250,000 fine for robbery of a U.S. mail carrier. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Carlos Piedra-Murillo (Piedra), 30, a citizen of Mexico, was sentenced today to two years and one month in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana in connection with a large-scale cultivation operation that impacted a prehistoric site, U.S. Attorney Phillip A. Talbert announced. Piedra was also ordered to pay $5,233 to the U.S. Forest Service to cover the cost to repair damage to the land and natural resources.

According to court documents, between May 1, 2016, and August 26, 2016, Piedra conspired with Juan Carlos Lopez, 32, of Lake Elsinore; Rafael Torres-Armenta (Torres), 30, and Javier Garcia-Castaneda (Garcia), 38, both citizens of Mexico, to cultivate marijuana in the Domeland Wilderness in the Sequoia National Forest. The Domeland Wilderness is a federally designated wilderness area about 55 miles northeast of Bakersfield and is known for its many granite domes and unique geologic formations. Law enforcement officers located over 8,000 marijuana plants at that location and seized 15 pounds of processed marijuana, a .22‑caliber rifle, a pellet rifle, and numerous rounds of .22‑caliber ammunition.

The marijuana cultivation operation caused extensive environmental damage. It covered about 10 acres and was within the burned area of the 2000 Manter Fire. Some of the new vegetation and trees that sprouted after the fire had been cut and trimmed to make room for the marijuana plants. Water was diverted from a tributary stream of Trout Creek, a major tributary to the Kern River. Fertilizer and pesticides, including illegal carbofuran and zinc phosphide, highly toxic pesticides from Mexico, were found at the site. Large piles of trash were found near the campsite. The moving of soil to accommodate a basin around each marijuana plant caused extensive damage to a large prehistoric Tűbatulabal archaeological site. Holes were dug in the middle of the archaeological site and artifacts were found scattered on the surface among the marijuana plants.

This case is the product of an investigation by the U.S. Forest Service, Bureau of Land Management, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the California Department of Fish and Wildlife. Assistant U.S. Attorney Karen Escobar is prosecuting the case.

Torres, Lopez, and Garcia have also pleaded guilty and are scheduled for sentencing on June 26, 2017. They face a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Carlos Piedra-Murillo (Piedra), 30, a citizen of Mexico, was sentenced today to two years and one month in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana in connection with a large-scale cultivation operation that impacted a prehistoric site, U.S. Attorney Phillip A. Talbert announced. Piedra was also ordered to pay $5,233 to the U.S. Forest Service to cover the cost to repair damage to the land and natural resources.

According to court documents, between May 1, 2016, and August 26, 2016, Piedra conspired with Juan Carlos Lopez, 32, of Lake Elsinore; Rafael Torres-Armenta (Torres), 30, and Javier Garcia-Castaneda (Garcia), 38, both citizens of Mexico, to cultivate marijuana in the Domeland Wilderness in the Sequoia National Forest. The Domeland Wilderness is a federally designated wilderness area about 55 miles northeast of Bakersfield and is known for its many granite domes and unique geologic formations. Law enforcement officers located over 8,000 marijuana plants at that location and seized 15 pounds of processed marijuana, a .22‑caliber rifle, a pellet rifle, and numerous rounds of .22‑caliber ammunition.

The marijuana cultivation operation caused extensive environmental damage. It covered about 10 acres and was within the burned area of the 2000 Manter Fire. Some of the new vegetation and trees that sprouted after the fire had been cut and trimmed to make room for the marijuana plants. Water was diverted from a tributary stream of Trout Creek, a major tributary to the Kern River. Fertilizer and pesticides, including illegal carbofuran and zinc phosphide, highly toxic pesticides from Mexico, were found at the site. Large piles of trash were found near the campsite. The moving of soil to accommodate a basin around each marijuana plant caused extensive damage to a large prehistoric Tűbatulabal archaeological site. Holes were dug in the middle of the archaeological site and artifacts were found scattered on the surface among the marijuana plants.

This case is the product of an investigation by the U.S. Forest Service, Bureau of Land Management, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the California Department of Fish and Wildlife. Assistant U.S. Attorney Karen Escobar is prosecuting the case.

Torres, Lopez, and Garcia have also pleaded guilty and are scheduled for sentencing on June 26, 2017. They face a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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FRESNO, Calif. — Raymond Arthur Gentile, 56, of Las Vegas, Nevada, was sentenced to five years in prison by U.S. District Judge Dale A. Drozd for conspiring to manufacture, distribute and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, and two counts of making false statements during firearms transactions, U.S. Attorney Phillip A. Talbert announced.

According to evidence presented at trial in July 2016, from 2009 to 2012, Gentile was the owner and operator of ANP, a marijuana storefront, in Bakersfield. When agents executed a federal search warrant, they seized 170 marijuana plants, over 24 pounds of processed marijuana, over $68,000 in cash, and a loaded shotgun. The testimony at trial established that Gentile made $25,000 to $30,000 a month in gross proceeds. Agents found the marijuana plants growing in two separate grow rooms within the store and sales receipts indicated 40 to 50 sales to customers each day. In addition, the evidence showed that Gentile made false statements on a Firearms Transaction Record, ATF Form 4473, in order to purchase two Glock firearms. One of the firearms was seized from ANP during the investigation of this case.

Under federal law, marijuana is a controlled substance without any legitimate medical purpose. The city of Bakersfield, where Gentile’s marijuana store was located, has prohibited the operation of marijuana dispensaries within its limits. Prior to sentencing, Judge Drozd found that even under California law, Gentile was not in compliance.

The case was the product of an investigation by the Drug Enforcement Administration with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the California Highway Patrol and the Bakersfield Police Department. Assistant United States Attorneys Karen A. Escobar and Melanie L. Alsworth prosecuted the case.

FRESNO, Calif. — Raymond Arthur Gentile, 56, of Las Vegas, Nevada, was sentenced to five years in prison by U.S. District Judge Dale A. Drozd for conspiring to manufacture, distribute and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, and two counts of making false statements during firearms transactions, U.S. Attorney Phillip A. Talbert announced.

According to evidence presented at trial in July 2016, from 2009 to 2012, Gentile was the owner and operator of ANP, a marijuana storefront, in Bakersfield. When agents executed a federal search warrant, they seized 170 marijuana plants, over 24 pounds of processed marijuana, over $68,000 in cash, and a loaded shotgun. The testimony at trial established that Gentile made $25,000 to $30,000 a month in gross proceeds. Agents found the marijuana plants growing in two separate grow rooms within the store and sales receipts indicated 40 to 50 sales to customers each day. In addition, the evidence showed that Gentile made false statements on a Firearms Transaction Record, ATF Form 4473, in order to purchase two Glock firearms. One of the firearms was seized from ANP during the investigation of this case.

Under federal law, marijuana is a controlled substance without any legitimate medical purpose. The city of Bakersfield, where Gentile’s marijuana store was located, has prohibited the operation of marijuana dispensaries within its limits. Prior to sentencing, Judge Drozd found that even under California law Gentile was not in compliance.

The case was initiated by the Drug Enforcement Administration (DEA) following a report to Bakersfield Police Department regarding an assault that allegedly occurred at Gentile’s business. In sentencing the defendant, the judge found that the defendant used threats of violence in connection with the sale of marijuana.

The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), California Highway Patrol and Bakersfield Police Department assisted in the DEA investigation. Assistant United States Attorneys Karen A. Escobar and Melanie L. Alsworth prosecuted the case.

FRESNO, Calif. — On Thursday, a federal grand jury returned a six-count indictment against Jacob Eric Blanco, 25, of Fresno, charging him with five counts of sexual exploitation of children and one count of distributing child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Blanco is alleged to have used apps on his phone and computer, including Musical.ly and KIK, to target and communicate with girls under the age of 12 for the purpose of having the girls create and transmit images of themselves engaged in sexually explicit conduct. Blanco came to the attention of law enforcement after the parents of a six-year-old girl in Nassau County, New York stated to local police that someone using the app Musical.ly, alleged to be Blanco, had solicited sexually explicit images of the girl. Investigators are actively attempting to identify additional victims.

This case is the product of an investigation by the Central California Internet Crimes Against Children Task Force. Assistant U.S. Attorney David Gappa is prosecuting the case.

If convicted, Blanco faces a mandatory minimum of 15 years in prison and a maximum of 30 years in prison for each sexual exploitation count and 5–20 years in prison for the one count of distribution of child pornography. For all counts there is a potential $250,000 fine and lifetime supervised release. 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. — Senator Dianne Feinstein today awarded the Law Enforcement Congressional Badge of Bravery to Mariposa County Sheriff’s Deputy Rudy Mirelez who exhibited exceptional courage in saving and protecting others and whose heroic actions were above and beyond the call of duty.

U.S. Attorney Phillip A. Talbert and Mariposa County Sheriff Doug Binnewies attended the presentation today in Fresno at the Doubletree Hotel.

“Deputy Rudy Mirelez is a worthy recipient of the Law Enforcement Congressional Badge of Bravery,” said U.S. Attorney Talbert. “It is an honor for the U.S. Attorney’s office to support the nomination of Deputy Mirelez. He now joins the ranks of law enforcement officers across the nation who stood in the front lines to fight against crime and violence.”

Sheriff Binnewies stated: “It is a privilege to count Deputy Rudy Mirelez as a partner in our mission to protect the people of Mariposa County. He fearlessly responded when his fellow deputy was in danger. We will never know how many lives he may have saved by his courageous actions that day. I congratulate him on this well-deserved honor. His bravery will always be remembered and will serve as an inspiration to us all.”

Every day, federal, state, and local law enforcement officers engage in exceptional acts of bravery while in the line of duty. Often, such acts place the officers involved at personal risk of injury or result in their sustaining a physical injury. To honor these acts of bravery, Congress passed the Law Enforcement Congressional Badge of Bravery Act of 2008, creating the Federal Law Enforcement Congressional Badge of Bravery and the State and Local Law Enforcement Congressional Badge of Bravery. The act establishes an award to honor exceptional acts of bravery in the line of duty by federal, state, and local law enforcement officers. The medals are awarded annually by the U.S. Attorney General and are presented by the recipients' Congressional representatives.

On Thursday morning, October 1, 2015 at 5:44 a.m. veteran Mariposa County Sheriff’s Deputy Rudy Mirelez logged on early for duty, At approximately 6:01 a.m., Deputy Mirelez and Deputy Justin Sponhaltz heard radio traffic from another deputy involved in a vehicle pursuit heading in their direction. The pursuing deputy indicated that the suspect vehicle passed him traveling at speeds of 90 miles per hour. As the suspect vehicle approached their location, Deputy Sponhaltz pulled onto State Route 49 to prepare to support the pursuing deputy. The fleeing vehicle was approaching Deputy Sponholtz’ position at an extremely high rate of speed. The suspect vehicle then appeared to lose control and or intentionally collided into Deputy Sponhaltz’ patrol vehicle. This collision forced Deputy Sponhalz’ vehicle off of the highway up an embankment. The suspect vehicle was rendered disabled and spun to a stop in the middle of the lane.

Witnessing the collision, Deputy Mirelez pulled to a stop between Deputy Sponhaltz’ vehicle and the suspect vehicle in an attempt to protect the life of his partner. Deputy Mirelez exited his vehicle and was confronted by a 35-year-old man armed with a pistol. After a brief verbal exchange, ordering the driver to drop the pistol, gunfire erupted between the suspect and Deputy Mirelez. During the firefight, Deputy Mirelez sustained a direct gunshot wound to the face from the suspect’s .45-caliber gun. This traumatic injury caused Deputy Mirelez to fall to his knees. Knowing his partner and the community was in danger, Deputy Mirelez got back up and continued to engage the suspect with fire. Deputy Mirelez was then struck in the upper torso. The bullet passed above his ballistic vest panels and caused critical internal injuries.

Deputy Mirelez was able to keep the suspect engaged until his fellow deputies, Deputy Sheriff Tim Lemmons and Deputy Sheriff Michael King contacted and apprehend the suspect.

Sustaining life-threatening injuries, Deputy Mirelez was flown to a trauma hospital in Modesto where a surgery team was waiting. Less than 24 hours after this incident, Deputy Mirelez, barely alert, began asking about his partners. Due to the significant and critical injuries sustained, Deputy Mirelez was not able to speak and was unable to move without excruciating pain. Fighting through his pain, he asked for paper and a pen and wrote “Sponholtz.” He then held his hand up showing the number four, the universal law enforcement code for Code 4, meaning “no further assistance needed.” Throughout his recovery, Deputy Mirelez would focus more on healing those around him than his own being.

Less than 30 days after being shot twice Deputy Mirelez spoke to the Mariposa County Board of Supervisors and community. Appearing in public, with his wife and family, with his facial injuries and protruding medical devices that held his jaw in place, he spoke about healing the community, thankfulness and his desire to get back to work protecting and serving the people of Mariposa County. Five months after having received multiple life-threatening injuries and having undergone multiple surgeries, Deputy Rudy Mirelez remains strong for his family and peers.

The investigation into the shooting, revealed the suspect was a well-trained U.S. combat veteran who served three tours in Iraq. The suspect, reportedly was “on a mission” to kill an unsuspecting Mariposa County resident unrelated to this event. Due to the courageous actions of Deputy Mirelez, at least one, and possibly many citizens’ lives were saved that morning.

Go to www.bja.gov/CBOB to learn more about the Law Enforcement Congressional Badge of Bravery.

SACRAMENTO, Calif. — Karen Mathews Davis, 68, of Lodi, pleaded guilty today to making false statements to federal agents during the course of a criminal investigation into the mailing of threatening letters, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between December 23, 2013, and February 12, 2015, Davis falsely claimed to federal law enforcement agents that she had received two letters in the mail from unknown individuals threatening her with death. At the time she received the letters, she was running for a U.S. Congressional seat. Davis provided information to federal law enforcement agents about three individuals who she suggested could have mailed the two threatening letters. In actuality, Davis wrote both letters, placing the first in her own mailbox and mailing herself the second.

This case is the product of an investigation by the U.S. Department of Treasury Inspector General for Tax Administration and the Federal Bureau of Investigation. Assistant United States Attorney Heiko P. Coppola is prosecuting the case.

Davis is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on September 28, 2017. Davis faces a maximum statutory penalty of five years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Vitaliy Fedorchuk, 28, of Antelope, pleaded guilty today to five counts of mail fraud for an international scheme to sell counterfeit airbags via eBay and other internet sales sites, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between June 23, 2014, and July 27, 2016, Fedorchuk offered for sale airbag modules, covers, and manufacturer emblems at his eBay online store, redbarnautoparts. Fedorchuk falsely advertised that the counterfeit airbags were original equipment from major automobile manufacturers such as Honda, Fiat, Chrysler, Nissan, Toyota, GMC and Ford. During the scheme, Fedorchuk sold hundreds of counterfeit airbags and obtained more than $95,000.

According to the plea agreement, all airbag parts Fedorchuk sold through his online store were counterfeit. Each identified automobile manufacturer informed law enforcement that the specific airbag items (including covers and emblems) are not sold individually. The items are sold as part of an airbag assembly to authorized dealers. Additionally, due to the significance and importance of airbag functionality and potential for loss of life or injury, such new airbag items are not sold on eBay and must be purchased through an authorized dealer. The authentic airbag covers and modules contain distinctive manufacturer markings that include the date of production. All airbag related items sold by Fedorchuk failed to contain such distinctive markings.

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

Fedorchuk is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on October 4, 2017. Fedorchuk faces up to 20 years in prison and a $250,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Following a multi-agency investigation in Merced County that focused on crimes of violence, drug sales, and illegal firearms possession, 14 federal defendants were indicted on Thursday for drug trafficking and firearms offenses, U.S. Attorney Phillip A. Talbert announced.

According to the criminal complaint, in December 2016, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and other federal, state and local law enforcement agencies began targeting gang members associated with Sureno criminal street gangs in Merced County. Information leading to the arrests was gathered using undercover buys of firearms and narcotics, surveillance and other investigative tools. On May 10, 2017, nearly 500 federal, state and local law enforcement personnel executed search warrants and arrested more than 50 criminal street gang members.

Most defendants face state charges. The following were arrested on federal charges and indicted by a federal grand jury on Thursday:

• Robert James Guthrie, 22, of Atwater, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, distribution of cocaine, conspiracy to engage in the business of dealing firearms without a license, and possession of an unregistered firearm.

• Andres Corona Prado, 28, of Hughson, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, conspiracy to engage in the business of dealing firearms without a license, and being an illegal alien in possession of a firearm.

• Joseph Quirarte, 21, of Atwater, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, and conspiracy to engage in the business of dealing firearms without a license.

• Francisco Salgado, 25, of Stevinson, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, attempted possession with intent to distribute methamphetamine, and being a felon in possession of a firearm.

• Marcos Hernandez, 33, of Winton, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, possession with intent to distribute methamphetamine, conspiracy to engage in the business of dealing firearms without a license, and being a felon in possession of a firearm.

• Raul Zamudio Hurtado Jr., 34, of Oakdale, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, and possession with intent to distribute methamphetamine.

• Orasio Fierro, 25, of Winton, is charged with distribution of cocaine, conspiracy to engage in the business of dealing firearms without a license, being a felon in possession of a firearm, and possession of an unregistered firearm.

• Jose Rodriguez 34, of Atwater, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, and distribution of cocaine.

• Zeb Stevens, 37, of Atwater, is charged with being a felon in possession of a firearm.

• Vincent Michael Williams, 28 of Atwater, is charged with being a felon in possession of a firearm.

• Abraham Sigala, 20, of Atwater, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine and distribution of methamphetamine.

• Daniel Garcia, 21, Atwater, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, and possession with intent to distribute methamphetamine.

• Carlos Arauza-Parga, 26, of Atwater, is charged with conspiracy to distribute and possess with intent to distribute methamphetamine, distribution of methamphetamine, and possession with intent to distribute methamphetamine.

• Joshua Lacey, 35, of Atwater, is charged with possession of an unregistered firearm.

  This case was the product of an investigation by the FBI, ATF, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Merced Area Gang and Narcotic Enforcement Team (MAGNET), and the California Department of Justice/California Highway Patrol, Special Operations Unit (CA DOJ/CHP SOU). Assistant U.S. Attorneys Kimberly A. Sanchez and Ross Pearson are prosecuting the case.

  If convicted, of the conspiracy to distribute methamphetamine, the maximum statutory penalty is 10 years in prison and a $10 million fine. The statutory penalty for distribution of methamphetamine is a minimum of 10 years in prison to a maximum of life in prison and a $10 million fine. The maximum penalty for distribution of cocaine is 20 years in prison and a $1 million fine. The maximum penalty for conspiracy to engage in the business of dealing firearms without a license is five years in prison and a $250,000 fine. The maximum penalty for possession of an unregistered firearm is 10 years in prison and a $250,000 fine. The maximum penalty for being a felon in possession of a firearm or being an illegal alien in possession of a firearm is 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned a superseding indictment today against Mark Corum, 60, of Sacramento, adding four counts of production of child pornography to the original indictment brought in December 2016, which charged him with one count of distribution of child pornography, United States Attorney Phillip A. Talbert announced.

According to court documents, Corum engaged in conversations with various Skype users in the Philippines in which he instructed the other parties to perform sexual acts on children while he watched on live webcam. Corum sent the persons located in the Philippines payments via money transmittal services in exchange for them performing the sexual acts he requested on the children and transmitting the images to him via webcam. In addition, on June 23, 2016, Corum transmitted images of prepubescent children engaged in sexually explicit conduct to another person via the internet.

This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Katherine T. Lydon is prosecuting the case.

If convicted, Corum faces a maximum statutory penalty of 20 years in prison on the distribution of child pornography count and maximum statutory penalties of 30 years in prison on each of the four production of child pornography counts, as well as a maximum statutory fine of $250,000 on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Donald Threatt, 67, of Fairfield, charging him with attempted online enticement of a minor, attempted sexual exploitation of a minor, and the commission of an offense involving a minor while required to register as a sex offender, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Threatt responded to a Craigslist advertisement and began conversing with an individual he believed to be 15 years old through the KIK messenger service. Threatt discussed sexual activity with the individual and arranged to meet the individual at her home after her mother had left for the weekend. Threatt also suggested to the individual that they take photos and a video of the planned sexual activity. Unbeknownst to Threatt, the individual with whom he conversed was actually a law enforcement agent. Threatt was arrested when he drove to the house where the meeting with the minor was to occur.

This case is the product of an investigation by the Air Force Office of Special Investigations and the Federal Bureau of Investigation. Assistant U.S. Attorneys Jeremy J. Kelley and Jill M. Thomas are prosecuting the case.

If convicted, Threatt faces a mandatory minimum of 25 years in prison and a maximum statutory penalty of life in prison as well as a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

FRESNO, Calif. — A federal jury in Fresno today found former Fresno deputy police chief Keith Foster, 53, guilty of conspiracy to distribute and possess with intent to distribute heroin and conspiracy to distribute and possess with intent to distribute marijuana, U.S. Attorney Phillip A. Talbert announced.

U.S. Attorney Talbert stated: “When a police officer misuses his official position to commit crimes for personal profit, it is the ultimate betrayal of public trust. The betrayal is only compounded when the officer involved is in a leadership position in the police department. By conspiring with others to traffic heroin and marijuana, Keith Foster not only disgraced the office he held, he put the community he was sworn to protect in danger. Although the jury was not able to reach verdicts on the additional counts relating to Foster’s alleged involvement in trafficking oxycodone, we are grateful for their hard work and the guilty verdicts they returned. My office is committed to rooting out corruption and prosecuting those who use their official position to commit crimes that endanger the community. We are proud to have worked alongside the ATF and FBI, with the full cooperation of the Fresno Police Department, in bringing Foster to justice.”

“The actions of Keith Foster and his co-defendants in this case jeopardized public safety and violated the trust of the citizens of Fresno he swore to protect,” said Special Agent in Charge Jill A. Snyder, San Francisco Field Division, Bureau of Alcohol, Tobacco, Firearms and Explosives. “During this investigation, ATF and FBI agents followed evidence of a drug trafficking conspiracy. That evidence led directly to the former deputy police chief of Fresno. Foster’s criminal activity will not deter ATF’s ongoing partnership with the Fresno Police Department to fight violent crime in the City of Fresno.”

“The FBI will continue to work closely with our law enforcement partners, investigating any allegation of criminal activity within the law enforcement community. The community must be served by those who obey the laws they are sworn to uphold and fulfill the oath of office,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento field office. “Public trust is essential to the success of the work that men and women in law enforcement do daily. Foster’s illegal acts have negatively impacted public perception of the men and women of the Fresno Police Department who proudly put their lives on the line every day to serve the Fresno community.”

According to evidence presented at trial, between July 19, 2014, and March 26, 2015, Keith Foster conspired with his nephew Iran Dennis “Denny” Foster, 46, of Fresno, to obtain marijuana from Ricky Reynolds, 50, of Shasta Lake. Denny Foster regularly traveled to Reynolds’ residence to purchase marijuana. On one of these trips, Denny Foster was stopped by the California Highway Patrol in Merced County and arrested for possessing six pounds of marijuana in the trunk of his car. When he was arrested, his passenger called Keith Foster and Foster said that he “could have provided cover” for Denny Foster if he had known about the trip ahead of time. He also said he would call his “narc guys.”

Also according to evidence presented at trial, between December 23, 2014, and February 2, 2015, Foster conspired with co-defendant Rafael Guzman, 43, of Fresno, to obtain heroin for another person.

Keith Foster resigned from his position on April 3, 2015, one week after his arrest.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Assistant United States Attorneys Melanie L. Alsworth and Dawrence W. Rice Jr. are prosecuting the case.

Six others pleaded guilty before trial to various offenses related to the drug trafficking conspiracy. Randy Flowers and Denny Foster are scheduled to be sentenced on July 10, 2017. Ricky Reynolds is scheduled to be sentenced on September 11, 2017. On October 11, 2016, Rafael Guzman, 43, of Fresno was sentenced to three years and four months in prison. Jennifer Donabedian, 37, of Fresno, pleaded guilty to concealing a felony and served 12 months’ probation. Sarah Ybarra, 39, of Fresno, pleaded guilty to conspiracy to distribute marijuana and served one year in prison.

Keith Foster is scheduled to be sentenced on October 10, 2017, by U.S. District Judge Anthony W. Ishii. Foster faces a statutory maximum penalty of 20 years in prison and a $1 million fine for the count relating to heroin, and a maximum of five years in prison and a $250,000 fine for the marijuana trafficking offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — One defendant pleaded guilty and two others were sentenced today for their involvement in large-scale marijuana cultivation operations in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.

Guilty Plea to Cultivation Conspiracy in National Forest
(1:16-cr-106 LJO)

Abel Toledo-Villa, 35, of Mexico, pleaded guilty to conspiring to manufacture, distribute and possess with intent to distribute 3,850 plants found in the Sequoia National Forest in Kern County. In pleading guilty, Toledo acknowledged that he had left the area after law enforcement agents entered the grow site. He was later found in a vehicle that contained about 8.5 pounds of processed marijuana, fertilizer, a rifle, and 106 rounds of ammunition. He agreed to pay $5,233 in restitution to the U.S. Forest Service for the damage he caused to public land and natural resources.

Toledo-Villa is scheduled for sentencing on August 14, 2017, before Chief U.S. District Judge Lawrence J. O’Neill. Toledo-Villa faces a mandatory minimum penalty of five years in prison and a maximum of 40 years in prison for the drug conspiracy, and up to a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

Sentencing in Giant Sequoia National Monument Cultivation Operation
(1:16-cr-156 DAD)

Following their guilty pleas earlier this year, Audencio Pineda-Gaona, 37, and Candelario Jimenez-Ramirez, aka Candelario Rodriguez-Jimenez, 55, both of Mexico, were each sentenced to two and a half years in prison for conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on forest land in the Giant Sequoia National Monument in Tulare County. They were each also ordered to pay $5,252 in restitution to the U.S. Forest Service to cover the cost of cleaning up the grow site.

According to court documents, the defendants and several other men were found trimming marijuana buds in the grow site in the Giant Sequoia National Monument in Tulare County. As the agents approached, the men fled. The defendants were apprehended, and agents found 5,707 marijuana plants and 200 pounds of processed marijuana. They also found a large box of 9 mm ammunition, a holster and a shoulder rig for a 9 mm handgun.

The marijuana cultivation operation caused extensive damage to the land and natural resources. Native trees and shrubs had been cut down to make room for the marijuana plants. Water had been diverted from a tributary stream of the Kern River, which supports Kern River rainbow trout, a “Species of Special Concern” in the state of California.. Agents also found harmful banned pesticides and large amounts of trash.

This case was the product of an investigation by the U.S. Forest Service, the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), the California Department of Fish and Wildlife, and the Tulare County Sheriff’s Office.

Assistant United States Attorney Karen Escobar is prosecuting both cases.

FRESNO, Calif. — Ramsey Jeries Farraj, 42, of Bakersfield, pleaded guilty today to conspiring with his former business partner, Majed Bashir “Mike” Akroush, 49, to structure $4,204,965 obtained from the sale of smokable synthetic drugs, U.S. Attorney Phillip A. Talbert announced.

Smokable synthetic cannabinoids are commonly known as K-2 or spice. They are sometimes marketed as incense or potpourri but contain powerful hallucinogenic chemicals. Consumption of smokable synthetic cannabinoids can lead to illness or even death.

In pleading guilty, Farraj acknowledged that he and co-defendant Akroush sold synthetic cannabinoids through their online businesses Blue Whale and World of Incense. They deposited over $4.2 million in proceeds in amounts under $10,000 into various bank accounts they maintained in order to avoid filing a currency transaction report, or CTR, that is required for amounts over $10,000. In pleading guilty, Farraj agreed to forfeit over $5 million seized from various bank accounts, seven properties, a 1962 Chevrolet Impala, one Rolex watch, and the domain name and websites used to conduct the illicit drug sales.

The case is part of a nationwide synthetic drug takedown in connection with Project Synergy Phase III that targeted the synthetic designer drug industry, including wholesalers, money launderers, and other criminal facilitators. In connection with this case, federal law enforcement officers arrested and charged Farraj, along with Akroush, Haitham Eid Habash, aka Eddie Habash, 54, of Hawthorne, and Zaid Elodat, 30, of Lawndale, and executed 12 search warrants in Bakersfield and the Los Angeles area.

Farraj is scheduled for sentencing on August 14, 2017, before U.S. District Judge Dale A. Drozd. Farraj faces a maximum statutory penalty of five years in prison and a fine of up to twice the gross gain obtained by him. 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.

Elodat previously pleaded guilty and is scheduled for sentencing later this year. The charges against Akroush and Habash are pending. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the U.S. Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the California Highway Patrol, with assistance from the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); the U.S. Postal Inspection Service, the California Department of Motor Vehicles, the Kern County Probation Department, the Kern County Sheriff’s Office, the Bakersfield Police Department, and the Los Angeles County Sheriff’s Office. Assistant United States Attorneys Karen A. Escobar, Grant B. Rabenn, and Jeffrey A. Spivak are prosecuting the case.

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

FRESNO, Calif. — The U.S. Attorney’s Office has distributed to the Fresno County Sheriff’s Office $1,813,575 of forfeited drug proceeds seized in connection with the investigation of a synthetic drug trafficking organization, U.S. Attorney Phillip A. Talbert announced.

On May 15, 2014, Victor Anthony Nottoli, 51, of Hillsborough, pleaded guilty to conspiring to defraud the United States by interfering with the lawful governmental regulatory and enforcement functions of the FDA and DEA. He also pleaded guilty to causing at least 24 tons of misbranded smokable synthetic cannabinoids (SSC) to be introduced into interstate commerce. In pleading guilty, Nottoli specifically agreed to forfeit more than $6.5 million of drug proceeds: $6,488,000 in cash and $191,000 in other assets, including a 2013 Ford F350 pickup truck and a 2014 Airstream travel trailer. He is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on March 26, 2018.

“The Asset Forfeiture Program literally takes the profits out of crime and distributes them fairly, effectively, and with tremendous benefit to the American people,” stated U.S. Attorney Talbert. “On behalf of the U.S. Department of Justice, I am pleased to return a portion of the forfeited funds in this case to the Fresno County Sheriff’s Office for their outstanding cooperation and investigative work in this synthetic marijuana trafficking case.”

Fresno County Sheriff Margaret Mims stated: “This case is a great example of the results that can be achieved when local and Federal law enforcement agencies partner to impact organized crime. The proceeds will be used in accordance with equitable sharing guidelines to combat illegal drug activity in our region.”

“Buyer beware,” said Michael T. Batdorf, Special Agent in Charge, IRS-CI. “Victor Nottoli sold harmful smokable synthetic cannabinoids throughout the country and profited tremendously from the illegal sales of these synthetic drugs. Working with our law enforcement partners we were able to dismantle this sizable drug organization and share the forfeited assets with several local agencies. We are honored that the Fresno County Sheriff’s Office can put this money to good use for their department.”

Drug Enforcement Administration Special Agent in Charge John J. Martin stated: “Strong partnerships build stronger communities. This investigation exemplifies how the Department of Justice’s equitable sharing program successfully takes the profit out of crime and benefits public safety. The proceeds seized from this criminal organization and distributed to law enforcement will help insure Fresno County is a safer place to live.”

“Local law enforcement partnerships are critical to achieving the overall public safety mission,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “Today’s presentation is clear evidence of how our partnerships are impacting public safety around the country. Together, we will continue our unwavering commitment to keep Americans safe.”

According to court documents, between April 1, 2011, and June 26, 2013, Nottoli and his co-conspirators generated at least $33 million by manufacturing and distributing the SSC products, commonly known as K2 or spice, to distributors and retail outlets throughout the U.S. and from his six smoke shops in Fresno, Visalia and Bakersfield. The misbranded drugs were intended for human consumption and were fraudulently packaged as herbal incense or potpourri. They were sold without the labeling necessary to protect the user and required by law including: the place of business of the manufacturer, packer, or distributor; an accurate statement of the contents; adequate directions for use; warnings against use by children or where its use may be dangerous to health; warning against unsafe dosage; or methods or duration of administration or application.

These funds were made available through the U.S. Department of Treasury - Executive Office for Asset Forfeiture and the U.S. Department of Justice’s equitable sharing program.

The Treasury Executive Office for Asset Forfeiture (TEOAF) administers the Treasury Forfeiture Fund (TFF). The mission of the TFF is to affirmatively influence the consistent and strategic use of asset forfeiture by participating agencies to disrupt and dismantle criminal enterprises. TEOAF, through the provision of leadership, guidance, and stewardship, works to maximize the impact of forfeitures performed by the participating federal agencies.

The U.S. Department of Justice’s equitable sharing program is designed to enhance cooperation among federal, state, and local law enforcement agencies through the sharing of proceeds resulting from federal forfeitures. State and local law enforcement agencies generally receive equitable sharing revenues by participating directly with DOJ agencies in joint investigations leading to the seizure or forfeiture of property. The amount shared with state and local law enforcement agencies is based on the degree of the agencies’ participation in the case.

This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the DEA, IRS-CI, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with assistance from the Office of Criminal Investigations of the Food and Drug Administration (FDA) and the Fresno County Sheriff’s Office, which initiated the case. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case and Assistant U.S. Attorney Jeffrey A. Spivak is handling the forfeiture of assets.

SACRAMENTO, Calif. — Jolene Davis, 41, of Stockton, was sentenced today to five years in prison for her role in the sexual exploitation of a child of whom she had custody, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on August 13, 2011, Davis met with co-defendant Jason S. Wymer, 45, of Citrus Heights, and permitted him to sexually exploit a child for whom she was caring. Wymer photographed that act.

Wymer pleaded guilty to this conduct and also admitted to a separate instance of sexual exploitation of a four-year-old child with co‑defendant Stormy M. Avers, 37, of Placerville. On July 29, 2016, Wymer was sentenced to 30 years in prison for sexual exploitation of minors. On June 24, 2016, Avers was sentenced to 20 years in prison.

This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento Internet Crimes against Children (ICAC) Task Force. ICAC is 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 United States 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.

SACRAMENTO, Calif. — Zargham Bukhari, 22, of Sacramento, was sentenced today by United States District Judge Garland E. Burrell Jr. to 10 years in prison for sex trafficking a minor, United States Attorney Phillip A. Talbert announced.

According to court documents, between February and April of 2014, Bukhari transported a 14-year-old victim to various motels and other locations in and around Sacramento to have sex with men for money. Bukhari would then take the money from the victim. Bukhari also gave the victim methamphetamine while he trafficked her.

This case was the product of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force, a multijurisdictional task force composed of representatives from the FBI and the Sacramento Police Department. Assistant U.S. Attorney Michele Beckwith is prosecuted 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. — Nive Hagay, 31, of Los Angeles, pleaded guilty today to conducting an illegal gambling business and distributing cocaine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, starting in 2008 until November 2016, Hagay, who also went by the name “Dino the Casino,” installed and maintained video slot machines in smoke shops, convenience stores and other 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.

Finally, on October 15, 2016, at a smoke shop in Sacramento, Hagay sold approximately one ounce of a mixture that tested positively for cocaine. The sale was recorded, and in the video, Hagay is seen pulling the bag of the substance from his pocket and taking the resulting money. In the recording, he discusses the quality of the cocaine, describes where he got it and offers to get more and of higher quality in the future.

As a part of his plea agreement, Hagay has agreed to forfeit assets acquired from proceeds of the illegal gambling business, including a 2010 Aston Martin Rapide, a 2016 Mercedes Benz AMG GT, several Ducati motorcycles, hundreds of thousands of dollars in cash seized from his home, the illegal slot machines, and various bank accounts.

This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Justice – Bureau of Gambling Control. Assistant United States Attorney Matthew M. Yelovich is prosecuting the case.

Hagay is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on August 24, 2017. Hagay faces a maximum statutory penalty of five years in prison and a $250,000 fine for the illegal gambling offense and 20 years in prison and a $1 million fine for the cocaine distribution charge. 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. — Sequoia Valverde, 33, of Stockton, was sentenced today by U.S. District Judge Troy L. Nunley to three years and one month in prison for conspiracy to commit credit card fraud in connection with a scheme aimed at Target REDcard account holders across the United States, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between March 2014 and September 2014, Valverde and eight co-conspirators operated a scheme to make and use unauthorized access devices, primarily Target department store’s REDcard. Valverde and others stole victims’ personal identification information through various methods and used that information to create REDcard accounts and manufacture credit cards with magnetic strips. They used the credit cards to buy large amounts of electronics, prepaid gift cards, and other goods at Target locations throughout the Sacramento area, Northern California, and elsewhere. During the conspiracy, Valverde personally conducted at least 69 fraudulent transactions using the account information of at least 32 victims.

In all, more than 300 counterfeit and unauthorized access devices were created and over 1,000 victims have been identified to date as having had their identities compromised as a result of the conspiracy. The conspiracy resulted in more than $248,000 in losses. Six of Valverde’s eight co-defendants have pleaded guilty and await sentencing.

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

SACRAMENTO, Calif. — Timothy Donald Fialdini, 52, of Sacramento, was sentenced today by U.S. District Judge Morrison C. England Jr. to two years and 11 months in prison, followed by three years of supervised release, for failure to register as a sex offender, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in August 2015, Fialdini moved to Sacramento from the state of Nevada and intentionally did not register as a sex offender under the Sex Offender Registration and Notification Act (SORNA) as was required based on his multiple convictions in Nevada for open and gross lewdness. Among the convictions, in 2009, Fialdini was convicted of committing sexual battery upon a female victim and an intentional sex act in public.

On November 30, 2015, Fialdini indecently exposed himself to an adult female in Sacramento. On March 8, 2016, Fialdini was arrested in a Sacramento County park by deputy U.S. Marshals with the assistance of state and local law enforcement.

This case was the product of an investigation by the U.S. Marshals Service and the Sacramento County Sheriff’s Sex Assault Felony Enforcement (SAFE) Team. The SAFE Team is a multi-agency task force operating in Northern California that monitors sex offenders and conducts investigations regarding sex offender registration violations. Assistant U.S. Attorney Michelle Rodriguez prosecuted the case.

SACRAMENTO, Calif. — An 18-count indictment was unsealed today after two of five defendants were arrested today for unemployment benefits fraud and an identity theft scheme, U.S. Attorney Phillip A. Talbert announced.

The indictment charges Pamela Emanuel, 57, of San Jose; Gregory Lee, 55, of Antioch; Russell White III, 35, of Turlock; Brittany Maunakea, 27, of Turlock; and Sergio Reyna, 24, of Stockton with conspiracy to commit mail fraud and 16 counts of mail fraud. Emanuel and Lee are also charged with separate counts of aggravated identity theft. Emanuel and Reyna were arrested today and are scheduled to be arraigned at 2:00 p.m. today.

According to court documents, between April 13, 2013, and July 14, 2016, the defendants conspired to execute a scheme to defraud the state of California. Emanuel worked as a tax compliance representative for the California Employment Development Department. She used her position to access the personal identifying information of workers throughout California and gave that information to other members of the conspiracy who filed fraudulent unemployment claims in the names of the unknowing victims. When Emanuel contacted EDD to pose as a laid-off employee, she used a Virtual Private Network designed to mask her IP address in an attempt to hide her identity. When the defendants filed claims with EDD, they usually provided the name of a fake business as the claimant’s last employer. As a result, the victim’s true employer was not immediately notified that a claim was filed.

The scheme resulted in the conspirators receiving over $800,000 in fraudulent unemployment benefits and over 250 stolen identities.

This case is the product of an investigation by the United States Department of Labor, Office of Inspector General, the Federal Bureau of Investigation and the California Employment Development Department – Investigations Division. Assistant U.S. Attorney Jared C. Dolan is prosecuting the case.

If convicted, the defendants face a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. Emanuel and Lee also face statutory mandatory minimum penalty of two years in prison for aggravated identity theft, which would run consecutive to any other sentence imposed. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Logan August, 30, of Bakersfield, and Derrick Penney, 34, of Star, Idaho, former deputies with the Kern County Sheriff’s Office, pleaded guilty today to conspiracy to distribute and possess with the intent to distribute marijuana, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between June 2014 and October 2014, while sworn peace officers working with the Kern County Sheriff’s Office (KCSO), August and Penney abused their positions of trust and authority by conspiring with former Bakersfield Police Department detective Patrick Mara and an individual who previously worked as a confidential informant for August, and others, to steal marijuana from a KCSO storage unit and sell it for unlawful personal gain. The marijuana had previously been seized during investigations into marijuana grown on public and private lands. Once August and Penney obtained the marijuana from the storage unit, they had it processed (trimmed) into approximately eight pounds of usable marijuana. August then delivered it to his former confidential informant, who sold it and provided August with part of the proceeds from those sales. August then shared the proceeds with Penney and Mara. August and Penney received approximately $1,200 each from the sale of this marijuana.

Additionally, according to August’s plea agreement and other court documents, between March 2014 and December 2014, while a sworn peace officer assigned to the KCSO Major Vendor Narcotics Unit, August routinely participated in law enforcement marijuana eradication operations on public and private lands. During this time, August abused his position of trust and authority as a KCSO deputy by conspiring with a former confidential informant to take marijuana plants and processed marijuana from these law enforcement marijuana eradication operations and sell that marijuana for unlawful personal gain. On 10 separate occasions between March 2014 and December 2014, August wrongfully took marijuana from a law enforcement eradication operation for personal gain. August distributed to his former confidential informant the equivalent of 25 pounds of usable marijuana wrongfully taken from these law enforcement eradication operations. August received $15,000 from the sale of this marijuana.

August and Penney have agreed to forfeit the proceeds of the marijuana trafficking.

This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Bakersfield Police Department. The Kern County Sheriff’s Office fully cooperated in this investigation. Assistant U.S. Attorneys Angela Scott and Brian Delaney are prosecuting the case.

August and Penney are scheduled to be sentenced by Judge Lawrence J. O'Neill on August 7, 2017. They face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — A federal grand jury returned an eight-count indictment today against Basil Hantash, 44, of Hughson, charging him with health care fraud, United States Attorney Phillip A. Talbert announced.

According to court documents, Hantash is a dermatologist and the medical director of Advanced Skin Institute (ASI) in Turlock. From 2011 through April 2016, Hantash submitted claims to private insurance companies requesting payment for performing acne surgeries. In fact, it is alleged that staff at ASI had performed only cosmetic procedures known as microdermabrasions, or chemical peels. Two insurers, Anthem Blue Cross and Blue Shield of California, paid ASI a total of approximately $220,000 during that time for claimed acne surgeries.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Michael G. Tierney is prosecuting the case.

If convicted, Hantash faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count of health care fraud. 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 single-count indictment today against Rosario Beltran-Leal (Beltran), 43, a Mexican citizen residing in Delano, charging him with conspiring to manufacture, distribute and possess with intent to distribute and manufacturing marijuana in the federally designated Giant Sequoia National Monument in Tulare County in the Sequoia National Forest, United States Attorney Phillip A. Talbert announced.

According to court documents, Beltran was found delivering 10,000 marijuana seeds at a drop point in a marijuana cultivation site in a remote area closed to the public in the Giant Sequoia National Monument. He was also in possession of a large quantity of food and marijuana cultivation supplies.

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

Beltran is scheduled for arraignment on the indictment on May 17, 2017, in federal court in Fresno. If convicted, Beltran faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Helaman Hansen, 64, of Elk Grove, was found guilty today by a federal jury for operating an elaborate adult-adoption fraud scheme that targeted undocumented aliens, U.S. Attorney Phillip A. Talbert announced.

After an 11-day trial, the jury found Hansen guilty of 12 counts of mail fraud, three counts of wire fraud, and two counts of encouraging and inducing illegal immigration for private financial gain.

According to evidence presented at trial, between October 2012 and January 2016, Hansen and others used various entities such as Americans Helping America (AHA) to sell memberships in what he called a “Migration Program.” A central feature of the program was the fraudulent claim that immigrant adults could achieve U.S. citizenship by being legally adopted by an American citizen and completing a list of additional tasks. At first, memberships were sold for an annual fee of $150, but that fee gradually grew and eventually was as high as $10,000.

According to evidence presented at trial, although some victims completed the adoption stage of the “Migration Program,” not one person obtained citizenship. As early as October 2012, Hansen had been informed by the U.S. Citizenship and Immigration Services that aliens adopted after their 16th birthdays could not obtain citizenship in the manner Hansen was promoting. Despite that notification, Hansen and others acting at his direction induced approximately 500 victims to pay more than $1 million to join the fraudulent program.

This case is the product of an investigation by the Federal Bureau of Investigation and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorneys André M. Espinosa and Katherine T. Lydon are prosecuting the case.

Hansen is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on August 3, 2017. Hansen faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of mail fraud and wire fraud. He faces up to 10 years in prison and a $250,000 fine for each count of encouraging and inducing illegal immigration for private financial gain. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. —Michael Brandon Kiper, 32, of Lemoore, was sentenced today by U.S. District Judge Anthony W. Ishii to 15 years in prison for two counts of receiving child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Kiper, who had been assigned duties as a military policeman at the Lemoore Naval Air Station in California, and while on temporary assignments in Nevada and in Bahrain, used accounts on Kik Messenger, Instagram, and Facebook to solicit sexually explicit images of numerous minor females throughout the United States and Canada. Kiper used an alias and claimed to be an agent for a modeling agency. Once he convinced minor females to send him at least one sexually explicit image of themselves, he threatened to post those images to social media sites unless the victims produced and transmitted additional sexually explicit images. One minor female told her mother about her communications with Kiper, and they contacted law enforcement.

This case was the result of an investigation by a multitude of law enforcement agencies, spearheaded by the Naval Criminal Investigative Service, the Upper Perk (Pennsylvania) Police Department, and the Paoli (Indiana) Police Department. Forensic analysis of evidence was conducted by the Kings County District Attorney’s Office, which is part of the Central California Internet Crimes Against Children Task Force. Assistant U.S. Attorney Brian Enos prosecuted this 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. — A federal grand jury returned a three-count indictment today against Stockton residents James Moore Jr., 42, and Calvin Daniels, 50, charging both men with distributing heroin near a school zone and conspiring to distribute heroin, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Moore and Daniels conspired, together and with others, to distribute heroin in San Joaquin County in 2017. Court documents further allege that Moore and Daniels distributed heroin near public elementary schools in Stockton on at least two occasions. Specifically, Moore is alleged to have distributed heroin within 1,000 feet of the John Marshall Elementary School on Lever Boulevard in Stockton in April 2017, while Daniels is alleged to have distributed heroin within 1,000 feet of the Rio Calaveras Elementary School on East Bianchi Road in Stockton in February 2017.

This case is the product of an investigation by the FBI’s Stockton Safe Streets Task Force, the Reno Safe Streets Task Force, and the Stockton Police Department with special assistance from the San Joaquin County District Attorney’s Office. Assistant United States Attorney Jason Hitt is prosecuting the case.

If convicted of distributing heroin near a school zone, Moore faces a maximum statutory penalty of life in prison and a $16 million fine, while Daniels faces a maximum statutory penalty of 80 years in prison and a $10 million fine. If convicted of conspiracy to distribute heroin, both men face 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Alan Fernando Gomez-Paniagua, 25, a citizen of Mexico residing in Delano, charging him with conspiring to cultivate, distribute, and possess with intent to distribute marijuana, cultivating marijuana, damaging public land and natural resources, and being an alien in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Gomez-Paniagua was connected to a marijuana cultivation site in the McFarland Creek area in the Sequoia National Forest. At the grow site, officers found over 15,000 marijuana plants, over 1,000 marijuana seedlings, and a loaded short‑barreled shotgun with a pistol grip.

The marijuana cultivation activities caused extensive damage to the environment. Numerous oak trees had been cut down and the hillside was terraced to make room for the marijuana plants. Pesticide containers and trash were strewn throughout the site.

This case is the product of an investigation by the U.S. Forest Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Southern Tri-County Central Valley California High Intensity Drug Trafficking Area (HIDTA) Task Force, the California Department of Fish and Wildlife, the Kern County Sheriff’s Office, and the California Multijurisdictional Methamphetamine Enforcement Team (CalMMET), a task force administered by the Kern County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.

Gomez-Paniagua is scheduled to be arraigned in federal court in Fresno on May 8, 2017. If convicted of the most serious offenses, the drug charges, Gomez-Paniagua faces a mandatory minimum prison term of 10 years and a maximum term of life, along with 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. C A federal jury found Alexander Nathan Norris, 28, of Davis, guilty of distribution and possession of material involving the sexual exploitation of minors, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between December 27, 2010, and April 12, 2011, law enforcement agents noticed an individual sharing child pornography over the internet using a peer-to-peer filing sharing software. One of the IP addresses the individual was using was registered to an apartment in Davis where three female UC Davis students lived. All three denied accessing or distributing child pornography. With the residents’ permission, the agents used a computer program and a directional antenna to find the individual involved in the file sharing. This led to Norris, who lived nearby in the same apartment complex and had gained unauthorized access to the students’ password‑protected network.

At the time of his arrest on April 12, 2011, Norris had child pornography on his computer, including files that he had distributed to law enforcement approximately four days earlier.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew G. Morris and Shelley D. Weger are prosecuting the case.

Norris is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on August 2, 2017. Norris faces a mandatory minimum of five years in prison and a statutory maximum of 20 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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. — Matthew Faron Blair, 33, of Modesto, pleaded guilty today to forcibly assaulting a federal contract security guard assigned to protect the Social Security Administration office in downtown Fresno, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on October 14, 2014, Blair went to the Social Security Administration office in Fresno to attempt to collect Supplemental Security Income (SSI) benefits. When advised that his benefits had stopped but could be renewed by completing additional paperwork, Blair became agitated and a security guard was called to escort him out of the office. As he was being escorted out of the office, Blair physically assaulted the guard. As a result of the assault, the guard suffered injury to the head and mouth, which required medical treatment.

This case is the product of an investigation by the Federal Protective Services with assistance from the Social Security Administration, Office of the Inspector General; the California Department of Corrections and Rehabilitation, Division of Adult Parole Operations; and the Stockton Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

Blair is scheduled for sentencing before Chief U.S. District Judge Lawrence J. O’Neill on June 5, 2017. Blair faces a maximum sentence of 20 years in prison, a $250,000 fine, and restitution. 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.

SACRAMENTO, Calif. —Xavier L. Johnson, 36, formerly of Elk Grove, and Kristin M. Caldwell, 35, of Elk Grove, pleaded guilty today to trafficking in counterfeit goods, United States Attorney Phillip A. Talbert announced.

According to court documents, between April 2008 and August 2011, the defendants imported counterfeit DVDs containing children’s movies from manufacturers in China and sold them over the internet. During that time period, they ordered at least 43,589 counterfeit DVDs from a supplier in China. According to court documents, when advertising the movies on their websites and in marketing emails, the defendants made false representations to consumers, including that the DVDs were in “limited supply” or “currently out of print” when in fact the defendants had a virtually limitless supply of counterfeit DVDs. The activity charged in the indictment occurred after the defendants had received multiple letters from government agencies telling them that shipments of DVDs were being seized at the border because they were counterfeit.

This case is the product of an investigation by the United States Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney Matthew G. Morris is prosecuting the case.

Johnson and Caldwell are scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on August 4, 2017. Both defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Today United States District Judge Troy L. Nunley sentenced a Sacramento man to two years in prison and a Stockton man pleaded guilty in two separate cases of conspiracy to submit false claims against the United States, U.S. Attorney Phillip A. Talbert announced.

“Identity theft schemes harm everyone, especially those which defraud the United States government and members of our community,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Mr. Windon Jr., his co-conspirators and others like them, who create these elaborate schemes have no purpose other than to mislead others and defraud the IRS. IRS Criminal Investigation remains committed to combatting refund schemes such as this and will continue to devote resources to bring those responsible for such harm to justice.”

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

United States v. Windom, et al., 2:15-cr-29

Lejohn Windon Jr., 24, of Sacramento, was sentenced to two years in prison. He is the fourth defendant to be sentenced in this case. According to court documents, Windon and his co‑conspirators Lejohn Windom Sr., Audrey Johnson, and Tracy Hartway submitted at least 682 tax returns to the IRS requesting a total of $1,989,803 in refunds. The IRS mailed at least $1,188,972 in refunds based on those fraudulent claims. In many cases, the defendants submitted the fraudulent tax returns without the knowledge or permission of the taxpayers whose names appeared on the returns. When the conspirators received the tax refund checks, they would forge the signatures of the taxpayers and cash the refund checks for themselves.

• On January 5, 2017, Lejohn Windom Sr. was sentenced by Judge Nunley to seven years and 10 months in prison and ordered to pay $1.1 million in restitution to the IRS;

• On February 9, 2017, Audrey Johnson was sentenced by Judge Nunley to 16 months in prison and ordered to pay $213,725 in restitution;

• On February 26, 2017, Tracy Hartway was sentenced to 28 months in prison and ordered to pay $142,069 in restitution.

This case was the product of a joint investigation by the IRS Criminal Investigation and the United States Postal Inspection Service.

United States v. Grady et al., 2:15-cr-204

Christopher M. Grady, 35, of Stockton, pleaded guilty to conspiracy to submit false claims against the United States and aggravated identity theft. According to court documents, Grady and others submitted tax returns to the IRS that falsely claimed that the persons named on the returns were entitled to tax refunds. Grady obtained the names, social security numbers, and other personal identifying information of various individuals and used that information, often without the knowledge of those people, to submit the tax returns in their names. Altogether, they submitted at least 1,367 false tax returns, requesting approximately $962,853 in tax refunds.

Charges are pending against Grady’s three co-defendants. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the IRS Criminal Investigation.

Assistant United States Attorney Matthew G. Morris is prosecuting both cases.

SACRAMENTO, Calif. — Ilie Zdragat, 30, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to two years in prison for aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Zdragat was the founder and director of Immigration Visa Services Organization (IVSO) that helped clients with asylum and citizenship applications, deportation proceedings and other matters related to immigration. Between April 4, 2012, and September 28, 2012, Zdragat executed a fraud scheme by submitting fraudulent income tax returns through Turbo Tax to the IRS.

According to the plea agreement, on September 28, 2012, Zdragat and another individual electronically filed a false 2011 income tax return for an individual and two dependents using the names and personal information of three former IVSO clients. The victims did not give Zdragat permission to file a tax return on their behalf. The tax return sought a refund of $6,200. Zdragat used a physical address in San Francisco unconnected to him to disguise his involvement in the scheme. The IRS did not process the fraudulent tax return.

This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Heiko P. Coppola prosecuted the case.

SACRAMENTO, Calif. – A Pollock Pines woman who owned a tax return preparation business was sentenced to serve 120 months in prison today for conspiring to file more than 250 false refund claims, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Phillip A. Talbert for the Eastern District of California.

According to documents filed with the court, Teresa Marty, 57, was the owner of Advanced Financial Services (AFS), a Placerville tax return preparation business. Marty conspired with her office manager, Pamela Harris and Rebecca Bandera-Marty to file fraudulent federal tax returns claiming more than $60 million in refunds. Marty and Harris recruited clients by falsely representing that the clients could legally receive large refunds by filing tax returns using IRS Forms 1099-OID. AFS prepared false Forms 1099-OID that reported the clients’ debts as income and the same amount as income tax withheld, resulting in significant claims for refund to which the clients were not entitled. The scheme included clients from 26 states and caused the IRS to pay out over 40 tax refunds, totaling more than $9 million. The IRS listed the use of false Forms 1099-OID on its website as one of the “dirty dozen” tax schemes for the years 2009 through 2014.

Marty, Harris and Bandera-Marty were indicted in June 2013 along with two clients, Charles and Victoria Tingler. Thereafter, Marty and the Tinglers, with the help of Harris, filed fraudulent multimillion dollar liens against government officials, including three IRS employees involved in the collection of taxes the Tinglers owed the IRS as a result of the scheme. Marty filed $84 million liens against the then Acting U.S. Attorney for the Eastern District of California and a former Department of Justice Tax Division attorney involved in filing suit to permanently enjoin Marty and AFS from preparing tax returns. The liens filed with the California Secretary of State unlawfully disclosed personal identification information of the government employees. Harris and Marty also hired a collection agency to enforce a $500,000 false lien that Charles Tingler filed against an IRS revenue officer.

“Today’s sentence sends a strong message: preparers like Teresa Marty who file fraudulent returns will be actively investigated and prosecuted, and face jail and significant penalties,” said Acting Deputy Assistant Attorney General Goldberg. “And efforts by such individuals to intimidate and harass the federal attorneys and agents working these cases will be thwarted and in fact result in the imposition of a higher sentence.”

“Teresa Marty recruited many individuals to participate in a scheme that she claimed to have ‘perfected’ from co-defendant Harris, who traveled to help her recruit clients, to her daughter-in-law, Bandera-Marty, who churned out fraudulent tax return forms. She used her qualifications as an IRS Enrolled Agent and California licensed tax preparer to market her scheme to clients,” U.S. Attorney Talbert stated. “When the IRS shut down her business, she retaliated by filing liens against those who were assigned to stop her fraud. At least 20 clients of Marty and Advanced Financial Services have been prosecuted throughout the country for fraudulent returns during this scheme. Today’s sentences reflect the gravity of the offenses and should deter others from violating the tax laws.”

In addition to the term of prison imposed, Marty was ordered to serve two years of supervised release and to pay $9,500,492 in restitution to the IRS.

Clients of AFS have been prosecuted in Arizona, Colorado, Florida, Georgia, Missouri, Oregon and Washington for filing false claims for refund that Marty and AFS prepared.

Clients of AFS have been prosecuted in Arizona, Colorado, Florida, Georgia, Missouri, Oregon and Washington for filing false claims for refund that Marty and AFS prepared.

Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Talbert commended special agents of IRS-Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Erin S. Mellen and Andrea A. Kafka of the Tax Division and Assistant U.S. Attorney Matthew D. Segal, who prosecuted the case.

A Pollock Pines, California woman who owned a tax return preparation business was sentenced to serve 120 months in prison today for conspiring to file more than 250 false refund claims, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Phillip A. Talbert for the Eastern District of California.

According to documents filed with the court, Teresa Marty, 57, was the owner of Advanced Financial Services (AFS), a Placerville, California tax return preparation business. Marty conspired with her office manager, Pamela Harris and Rebecca Bandera-Marty to file fraudulent federal tax returns claiming more than $60 million in refunds. Marty and Harris recruited clients by falsely representing that the clients could legally receive large refunds by filing tax returns using Internal Revenue Service (IRS) Forms 1099-OID. AFS prepared false Forms 1099-OID that reported the clients’ debts as income and the same amount as income tax withheld, resulting in significant claims for refund to which the clients were not entitled. The scheme included clients from 26 states and caused the IRS to pay out over 40 tax refunds, totaling more than $9 million. The IRS listed the use of false Forms 1099-OID on its website as one of the “dirty dozen” tax schemes for the years 2009 through 2014.

Marty, Harris and Bandera-Marty were indicted in June 2013 along with two clients, Charles and Victoria Tingler. Thereafter, Marty and the Tinglers, with the help of Harris, filed fraudulent multi-million dollar liens against government officials, including three IRS employees involved in the collection of taxes the Tinglers owed the IRS as a result of the scheme. Marty filed $84 million liens against the then Acting U.S. Attorney for the Eastern District of California and a former Department of Justice Tax Division attorney involved in filing suit to permanently enjoin Marty and AFS from preparing tax returns. The liens filed with the California Secretary of State unlawfully disclosed personal identification information of the government employees. Harris and Marty also hired a collection agency to enforce a $500,000 false lien that Charles Tingler filed against an IRS revenue officer.

“Today’s sentence sends a strong message: preparers like Teresa Marty who file fraudulent returns will be actively investigated and prosecuted, and face jail and significant penalties,” said Acting Deputy Assistant Attorney General Goldberg. “And efforts by such individuals to intimidate and harass the federal attorneys and agents working these cases will be thwarted and in fact result in the imposition of a higher sentence.”

In addition to the term of prison imposed, Marty was ordered to serve two years of supervised release and to pay restitution to the IRS in the amount of $9,500,492.83.

Clients of AFS have been prosecuted in Arizona, Colorado, Florida, Georgia, Missouri, Oregon and Washington for filing false claims for refund that Marty and AFS prepared.

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Talbert commended special agents of IRS-Criminal Investigation and Treasury Inspector General for Tax Administration (TIGTA), who conducted the investigation, and Trial Attorneys Erin S. Mellen and Andrea A. Kafka of the Tax Division and Assistant U.S. Attorney Matthew D. Segal, who prosecuted the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

SACRAMENTO, Calif. — Epati Malauulu, 42, of Suisun City, was sentenced today by U.S. District Judge Kimberly J. Mueller to 20 years in prison for conspiracy to distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Malauulu operated a methamphetamine distribution business that purchased high quality crystal methamphetamine in Northern California and distributed it in Hawaii where it sold at a large profit. Between August 2014 and June 2015, Malauulu was responsible for mailing over 15 pounds of methamphetamine to Oahu.

The investigation began in Hawaii and eventually identified Malauulu as the out-of-state methamphetamine supplier. Co-defendants John Ortiz, 45, of Vallejo; Algernon Tamasoa, 28, of Sacramento; and Francisco Poloai, 45, of Dixon, were also charged in the conspiracy in the Eastern District of California. Ultimately, the investigation led to 44 defendants being charged in the District of Hawaii and four being charged in the Northern District of California (San Francisco).

This case is the product of an investigation by the U.S. Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Solano County Multi-Jurisdictional Methamphetamine Enforcement Team, the Solano County Sheriff’s Office, the Fairfield Police Department, the Vallejo Police Department, the San Francisco Police Department, the Honolulu Police Department, and others. Assistant United States Attorney Richard Bender prosecuted the Sacramento case.

Co-defendants Ortiz and Tamasoa have pleaded guilty to charges stemming from the methamphetamine trafficking activity. Poloai is scheduled for trial on September 25, 2017. The charges against Poloai are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the Organized Crime Drug Enforcement Task Force, (OCDETF) a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.

SACRAMENTO, Calif. —U.S. District Judge Kimberly J. Mueller sentenced Michael Tamblin, 52, of Manteca, to 11 years and three months in prison today for transporting child pornography.

According to court documents, in September and October of 2015, Tamblin surreptitiously filmed a minor child on numerous occasions using a hidden camera. Once Tamblin had those images, he transported them on a USB drive to his place of employment. On February 8, 2017, Tamblin pleaded guilty to transporting child pornography.

Tamblin was a technician at the Lawrence Livermore National Laboratory (LLNL), which is a secured federal laboratory owned by the United States Department of Energy. All internet searches on the LLNL network are recorded and periodically audited. A routine review of internet searches on Tamblin’s computer revealed potentially inappropriate activity. Further investigation led law enforcement officers to obtain search warrants for Tamblin’s residence and vehicles where they found evidence of Tamblin’s crimes. Tamblin has remained in custody since his arrest on February 19, 2016.

This case was the product of an investigation by the Federal Bureau of Investigation and the Department of Energy, Office of Inspector General. Assistant United States Attorneys Rosanne Rust and Roger Yang 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.