Eastern District of California

SACRAMENTO, Calif. — Jarod Perdichizzi, 30, of Lodi, pleaded guilty today to distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in July 2016, Perdichizzi used the Kik messenger service to chat online with someone who, unbeknownst to Perdichizzi, was an undercover federal agent. Perdichizzi sought information about how he could become sexually active with a minor female and also emailed images of minors engaged in sexually explicit conduct to the undercover agent. After executing a federal search warrant at Perdichizzi’s residence, agents found a thumb drive containing 88 images and nine videos of child pornography. Perdichizzi has been in custody since his arrest on July 28, 2016.

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

Perdichizzi is scheduled to be sentenced by U.S. District Judge John A. Mendez on June 13, 2017. Perdichizzi faces a mandatory minimum sentence of five years in prison and a maximum penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

FRESNO, Calif. — U.S. District Judge Lawrence J. O’Neil sentenced Gary Lee Ortiz, 42, of Auberry, today to three years and one month in prison for being a felon in possession of a handgun with an obliterated serial number, U.S. Attorney Phillip A. Talbert announced.

Ortiz was also ordered to pay $5,200 in restitution to the U.S. Forest Service for damaging public land and natural resources as a result of marijuana cultivation activities on and near his residence in the Mill Creek area of Auberry, California.

According to court documents, on June 8, 2015, law enforcement officers found a large marijuana cultivation operation in the Sierra National Forest adjacent to Ortiz’s property located about four and one half miles from Shaver Lake. During a follow-up investigation of Ortiz’s property, agents seized a total of four firearms. Three of the firearms were found in and around a trailer on Ortiz’s property, and one of the firearms was a Herbert Schmidt, model E 15, .22 LR caliber revolver with the serial number obliterated. At the time, Ortiz was a convicted felon on probation for carrying a concealed weapon in a vehicle.

Law enforcement officers eradicated 12,302 marijuana plants from public land and 444 marijuana plants from Ortiz’s property.

This case was the product of an investigation by the U.S. Forest Service, the Bureau of Alcohol, Tobacco Firearms and Explosives, the California Department of Fish and Wildlife, the Fresno County Sheriff’s Office, and the Fresno County Probation. Assistant U.S. Attorney Karen Escobar prosecuted the case.

SACRAMENTO, Calif. — U.S. District Judge Garland E. Burrell Jr. sentenced Mark McLeod Wygant, 46, of Chico, today to 10 years in prison for transportation of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, from early 2011 to early 2012, Wygant surreptitiously filmed a child on numerous occasions using a hidden cellphone and hidden “spy cameras” that he had purchased for that purpose. He then transported those videos and photos from a location in Butte County to South Lake Tahoe, where he worked at the time as a South Lake Tahoe Fire Department captain. The charges do not relate to any conduct committed during the course of his interaction with the public during his job duties. Wygant has been in custody since his arrest on January 29, 2015.

This case was the product of an investigation by the Federal Bureau of Investigation and the South Lake Tahoe Police Department. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.

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

SACRAMENTO, Calif. — Today, after a one-day bench trial, U.S. District Judge Garland E. Burrell Jr. found Christopher Geanakos, 30, of Rancho Cordova, guilty of one count of receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to evidence presented at trial, law enforcement identified a computer at Geanakos’s residence offering images of child pornography through a file-sharing network. During the execution of a search warrant, law enforcement identified Geanakos’s desktop computer as the source for the online images. Law enforcement subsequently performed a forensic examination of this computer and confirmed that multiple images and movies depicting child pornography had been downloaded onto the computer between 2010 and 2013, including images that depicted infant and toddler victims.

This case is the product of an investigation by the Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Audrey B. Hemesath and Shelley D. Weger are prosecuting the case.

Geanakos is scheduled to be sentenced by Judge Burrell on May 19, 2017. Geanakos faces a minimum of five years in prison and a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. 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. — Audencio Pineda-Gaona, 37, and Candelario Jimenez-Ramirez, aka Candelario Rodriguez-Jimenez, 55, both of Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute and manufacturing marijuana in the Sequoia National Forest, U.S. Attorney Phillip A. Talbert announced.

 

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, but the other men got away. 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 due to habitat loss. Agents also found harmful banned pesticides and large amounts of trash. In pleading guilty, the defendants agreed to pay $5,252 in restitution to the U.S. Forest for the damage caused by their marijuana cultivation activities.

 

This case is 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 U.S. Attorney Karen Escobar is prosecuting the case.

 

The defendants were previously ordered detained as a flight risk and danger to the community. The men are scheduled for sentencing on May 22, 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.

SACRAMENTO, Calif. — Senior U.S. District Judge Garland E. Burrell Jr. sentenced Alla Samchuk, 45, of Roseville, to nine and a half years in prison for a mortgage fraud scheme and obstruction of justice, U.S. Attorney Phillip A. Talbert announced.

A federal jury returned a verdict in August 2016 finding her guilty of six counts of bank fraud, six counts of making a false statement to a financial institution, one count of money laundering, and one count of aggravated identity theft.

According to the evidence presented at trial, from 2006 through 2008, Samchuk, a licensed real estate salesperson, orchestrated a mortgage fraud scheme involving three properties in the Sacramento area using straw buyers. Two of the houses were purchased so that Samchuk herself could occupy them. She lacked the ability to qualify for a loan, so she instead recruited straw buyers to apply for the loans in their names. Samchuk caused the submission of loan applications containing false representations of income, employment, assets, and a false indication that the straw buyers would occupy the homes as their primary residence.

A second objective of the scheme was to obtain HELOC (home equity line of credit) funds. According to evidence at trial, on two of the properties, Samchuk diverted or attempted to divert HELOC funds to her own benefit. Samchuk caused the HELOC loans to fund by submitting false statements and documents to the lender regarding the qualifications of the straw buyers.

The scheme involved two properties in Roseville and one in El Dorado Hills. In 2007, Samchuk filed an application for a HELOC on one of the properties without the straw buyer’s knowledge or consent. To obtain the HELOC, she forged the signature of the straw buyer on a short form deed of trust that she caused to be notarized and recorded. The stated purpose of the HELOC was home improvement, but once the line of credit was funded, Samchuk quickly diverted all of the funds to her own use, spending the proceeds on a Lexus and the repayment of a substantial personal debt.

Samchuk received a higher sentence because the district court found that she obstructed justice when she threatened a witness not to report the crime to federal authorities. The court found that Samchuk’s statements to the witness constituted a threat that Samchuk purposefully calculated to dissuade the witness from alerting law enforcement about the fraud.

This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Andre M. Espinosa prosecuted the case.

SACRAMENTO, Calif. — Markell Darrell Davis, 30, of Fairfield, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.

 

According to court documents, on February 17, 2014, Davis was involved in a shooting in a residential neighborhood in Fairfield. Davis, a convicted felon who was prohibited by law from possessing a firearm, possessed and fired a .40-caliber Glock semi-automatic pistol, injuring a bystander.

 

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

 

Davis is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on June 29, 2017. Davis faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Martin Carranza-Sanchez, 45, of Mexico, was sentenced today by U.S. District Judge Dale A. Drozd to a six years and six months in prison and three years of supervised release for conspiracy to commit wire fraud in a scheme to defraud Mexican citizens seeking to enter the U.S. without documentation and their relatives living in the United States, U.S. Attorney Phillip A. Talbert announced.

According to his plea agreement and other court documents, between January 2010 and January 21, 2016, Carranza-Sanchez posed as an undocumented immigrant smuggler (also known as a “coyote”) who falsely promised undocumented immigrants and their U.S.‑resident relatives that he would deliver the immigrants into the United States for a fee. Carranza-Sanchez directed the U.S. residents to wire the fee to various bank accounts in the Eastern District of California, which he and his co-conspirators ultimately collected.

Carranza-Sanchez, however, never intended to help the immigrants enter the United States without being detected. In fact, on multiple occasions, after the immigrants arrived at the Mexico location designated by Carranza-Sanchez, his co-conspirators detained them against their will until their relatives wired Carranza-Sanchez’s fee. Also, on multiple occasions, Carranza-Sanchez and his co-conspirators told the U.S. residents that the immigrants would be harmed if the U.S. residents did not pay immediately. In many instances, once the relatives wired the fee, Carranza-Sanchez instructed the immigrants to cross the border without him, at which point the immigrants were immediately apprehended by U.S. Border Patrol.

The investigation revealed that Carranza-Sanchez and his co-conspirators defrauded U.S. residents of approximately $95,000 as a result of their scheme. He was ordered today to repay that amount to the victims of his crimes.

U.S. Attorney Talbert stated, “While smuggling undocumented immigrants is a crime, falsely claiming to do so in order to obtain payments from relatives in the United States is also a crime—fraud. Carranza-Sanchez’s fraud scheme targeted the immigrants’ relatives living in the United States, and he exploited them further by threatening to harm the immigrants if the fee wasn’t paid immediately. This criminal conduct is unacceptable, and we will continue to investigate and prosecute those who engage in it.”

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

FRESNO, Calif. — On Friday, February 17, 2017, Arnulfo Huerta-Cornejo, 32, of Delhi, pleaded guilty to conspiring to smuggle bulk cash, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between March 2014 and August 2015, Huerta-Cornejo was involved with the cultivation of marijuana on federal lands. During that time, he accumulated approximately $16,000 cash from the sale of marijuana, hid that cash in a vehicle, and arranged to have the cash smuggled into Mexico. Applicable federal regulations require reporting when $10,000 or more cash is taken out the United States.

This case is the product of an investigation by the U.S. Forest Service, the Madera County Sheriff’s Department and the Merced County Sheriff’s Department. Assistant U.S. Attorney Kevin Rooney is prosecuting the case.

Huerta-Cornejo is scheduled to be sentenced by U.S. District Judge Lawrence J. O'Neill on May 22, 2017. Huerta-Cornejo faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Jacob Anthony Mora, 33, of Roseville, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 21 years and 10 months in prison and lifetime supervision upon release, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Mora used the online application, Kik Messenger, to encourage girls between the ages of 14 and 17 to send him sexually explicit photographs, engage in sexually explicit conversations, and to meet him to have sex. Mora would also send obscene images of himself to underage girls he met online. In some cases, Mora represented that he was younger than his actual age, claiming to be 19 years old, when exchanging messages with his victims. When arrested, Mora admitted that he had met four underage girls for sex, and that he liked chatting with minor girls since they were easy to get and naive.

This case was the product of an investigation by the Federal Bureau of Investigation and the Rocklin and Roseville Police Departments. Assistant U.S. Attorney Michael D. Anderson 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 U.S. 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. — Daniel Albert Crowninshield, 54, of Sacramento, was sentenced today to three years and five months in prison for unlawfully manufacturing and dealing in firearms and possession of an unregistered machinegun, U.S. Attorney Phillip A. Talbert announced.

In sentencing Crowninshield, U.S. District Judge Troy L. Nunley referred to his actions as a “brazen attempt to circumvent the law.” He was ordered to self-surrender on April 13, 2017.

U.S. Attorney Talbert stated: “The unregulated manufacture and sale of high-capacity firearms is a serious threat to public safety. We will continue to investigate and prosecute unlicensed gun dealers who circumvent the law.”

“If individuals neglect to follow federal firearms laws, ATF has the responsibility to investigate these activities because it is ATF's highest priority to safeguard the public it serves,” said Special Agent in Charge Jill A. Snyder. “ATF enforces the federal laws and rules governing the manufacturing of firearms. When ATF receives information on the illegal manufacture of firearms, it investigates and has the authority to promulgate rules and regulations to implement those laws. Daniel Crowninshield, aka Dr. Death, owned and operated a machine shop where he allowed customers with unknown backgrounds to use his machinery to unlawfully manufacture firearms for profit. That activity posed a very dangerous threat to the safety of our communities.”

According to court documents, Crowninshield, who was also known by his online moniker “Dr-Death,” operated an unlicensed firearms manufacturing business out of C&G Tool, a metal shop in North Sacramento. Using sophisticated computer-controlled machines, Crowninshield manufactured parts for AR-15s and other firearms.

Many individual firearm components are not subject to regulation by ATF and can be bought and sold without reporting the sales and without requiring a background check. One such part is a metal casting of an incomplete “lower receiver” called a “blank.” The blank can be converted into a lower receiver, which is the part of an AR‑15 that contains a trigger, firing pin, and other parts, to form a functioning firearm. Once the blank is milled into a completed lower receiver using a drill press or automated machine, it is considered a firearm and it is subject to federal regulation.

Generally, the manufacturing at C&G Tool would proceed as follows: prospective gun buyers would purchase an AR-15 blank and take it to C&G Tool where a skilled machinist would mill the blank into an AR-15 lower receiver. According to federal law, a person may manufacture a firearm for personal use without including a serial number on the firearm, provided that the firearm is not sold or transferred to another person. Otherwise, to manufacture a firearm requires a license from ATF, and a firearm that is transferred to another person must bear a serial number.

According to court documents, in order to create the pretext that C&G customers were building their own firearms, the skilled machinist would have the customer press a button or put his or her hands on a piece of machinery so that the customer could claim that the customer, rather than the machinist, made the firearm.

Crowninshield advertised his services on at least one online firearm enthusiast forum. This website mainly consists of forums where people ask and answer questions related to firearms. Using the moniker “Dr-Death,” he was a prolific poster on the website. Additionally, other members frequently posted about Dr-Death, including review of service provided and recommending that other users visit his shop.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the California Department of Justice’s Bureau of Firearms with the assistance of the Sacramento Police Department, the Sacramento County Sheriff’s Department, and California Highway Patrol. Assistant U.S. Attorneys Justin Lee and Matthew Yelovich prosecuted the case.

Crowninshield was one of several Sacramento-area individuals involved in manufacturing AR-15 style firearms. On December 9, 2016, in a related case, Emiliano Cortez-Garcia (2:13-cr-353-GEB) was sentenced to five years in prison for manufacturing AR-15 firearms and a concurrent six-year prison term for possession of an unregistered firearm and possession of a machinegun.

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Christopher Lee, 64, of Auburn, charging him with the production of child pornography, U.S. Attorney Phillip A. Talbert announced.

 

According to court documents, Lee used a webcam to produce child pornography and share the video with an individual who lived in England.

 

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Placer County Sheriff’s Department. Assistant U.S. Attorney Lee S. Bickley is prosecuting the case.

 

Lee has remained in custody since his arrest on February 6, 2017.

 

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

 

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. 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. — Sierra Nevada Corporation (SNC) has paid $14.9 million to resolve allegations that it violated the federal False Claims Act when it knowingly misclassified certain costs, resulting in inflated overhead rates paid to SNC pursuant to various government contracts, U.S. Attorney Phillip A. Talbert announced.

SNC is a Nevada corporation that provides services to agencies of the United States pursuant to various defense and space contracts. The improper charges resolved here resulted from SNC misclassifying certain direct contract costs and Manufacturing and Production Engineering costs as Independent Research and Development (IR&D) costs, and charging certain IR&D costs in the wrong cost accounting period. This improper characterization of costs artificially inflated General & Administrative overhead rates paid to SNC across its federal contracts and resulted in overcharging federal agencies. The government relies on contractors to accurately classify both the nature and timing of contract costs in order to properly calculate overhead rates and appropriately pay for work on government programs.

“This settlement illustrates our commitment to protect the integrity of federal procurement contracting,” said U.S. Attorney Phillip A. Talbert. “We will hold federal contractors to the highest standards of accuracy to ensure that federal agencies are not overcharged for products and services.”

“The integrity of our procurement systems is required by the American public, who demand that tax dollars are used responsibly,” said Chris Hendrickson, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS and our law enforcement partners are committed to protecting precious resources needed to support our soldiers, sailors, airmen and Marines.”

This case was handled by Assistant U.S. Attorney Catherine J. Swann, with assistance from the Defense Contract Management Agency, the Defense Contract Audit Agency, the National Aeronautics and Space Administration, and DCIS. The claims settled by this agreement are allegations only, and there has been no determination of liability.

SACRAMENTO, Calif. — Yasir Mehmood, 45, of Sacramento, was sentenced on Tuesday by U.S. District Judge John A. Mendez to four years and six months in prison for bank fraud and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Mehmood was an information technology professional who was hired in 2011 to fix the computer systems at a Marin County-based eyeglass retailer. Months later, long after his business relationship with the retailer ended, and without authorization, he accessed hundreds of the retailer’s customer records, which included credit and debit card numbers, associated security codes, and personal identification information (names, telephone numbers, addresses and email addresses). Mehmood used these customer records to purchase products and gift cards and to process fraudulent merchant transactions with payments transferred to bank accounts controlled by him. Mehmood also fraudulently registered websites and made false online job postings to capture personal and financial information of online purchasers and job seekers.

San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “We are working closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those responsible for complex identity fraud schemes and to protect postal customer’s mail and personal information from theft.”

In 2013, while on pretrial release, Mehmood cut his ankle monitor and fled from authorities before being arrested by the Sacramento County Sheriff’s Department.

This case was the product of an investigation by the U.S. Postal Inspection Service with assistance from the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Sacramento County Sheriff’s Department. Assistant U.S. Attorney Jeffrey A. Spivak and Trial Attorney Manish Kumar from the Department of Justice’s Antitrust Division prosecuted the case.

SACRAMENTO, Calif. — After a four-day trial, a jury found Mihran Melkonyan, 36, of Sacramento, guilty on Tuesday of 24 counts of wire fraud and two counts of mail fraud related to a scheme to commit credit card fraud by operating phony online businesses, U.S. Attorney Phillip A. Talbert announced.

Co-defendant Ruslan Kirilyuk, 39, of Beverly Hills, failed to appear at trial, and a bench warrant was issued for his arrest. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt. On December 15, 2014, co‑defendant Rouslan Akhmerov, 42, of Studio City, pleaded guilty to one count of access device fraud for his participation in the scheme. He is set to be sentenced on March 21, 2017.

According to evidence presented at trial, between approximately October 5, 2011, and March 5, 2014, Melkonyan worked with Akhmerov and others in a credit card billing scheme that involved creating approximately 68 fraudulent online companies established with the sole purpose of fraudulently charging approximately 119,000 stolen credit card numbers. In total, the members of the scheme billed the stolen credit card numbers for over $3.4 million in unauthorized charges.

As established at trial, to create the fraudulent companies, the members of the scheme obtained over 200 stolen report cards from the San Juan Unified School District. Those report cards had student information on them such as names and social security numbers. Using that information, Melkonyan and others created fraudulent companies with names such as CVS Store, Walt Mart (sic), and Chevran (sic).

Melkonyan and others then opened merchant accounts with American Express using those names and false identities. Working with co-conspirators in Russia, Melkonyan and others used those merchant accounts to process American Express credit card charges for the fraudulent businesses.

Once American Express credited the businesses’ merchant accounts for the fake sales, Melkonyan and others transferred the money from the merchant accounts to bank accounts they controlled that had been opened in other people’s identities. In some cases, Melkonyan directed foreign students visiting the United States on J-1 student visas to open bank accounts. When the students left the United States, Melkonyan took over the bank accounts to use for collecting fraud proceeds.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Michael D. Anderson and Matthew M. Yelovich are prosecuting the case.

Melkonyan is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on May 5, 2017. Melkonyan faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Matthew Gene Ballard, 38, of Manteca, pleaded guilty today to executing a bank fraud and identity theft scheme and to numerous violations of the terms of his supervised release from prison for a prior conviction, U.S. Attorney Phillip A. Talbert announced.

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

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

Ballard is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on April 28, 2017. Ballard faces the maximum statutory penalty of 30 years in prison for bank fraud, 20 years in prison for possession of counterfeit identification, and a mandatory two-year consecutive prison sentence for aggravated identity theft. For his violation of federal supervision terms, Ballard faces up to three years in prison consecutive to any other sentence. 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. — Raleigh Rana Figueras, 35, of Sacramento, pleaded guilty today to bank fraud, aggravated identity theft, possession of stolen U.S. mail, and unlawful possession of five or more identification documents, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between June 2015 and January 2016, Figueras along with his wife, Michelle Reyes Serrano, 35, of Sacramento, and others obtained victim identities and financial information from stolen mail and other stolen property. They obtained personal and financial information and used it to pose as the identity theft victims and use their stolen bank accounts, access device numbers, and altered checks to get money, goods and services from banks and merchants. Figueras created counterfeit driver’s licenses on his computer.

This case is the product of an investigation by the U.S. Postal Inspection Service with the assistance of the Sacramento County Sheriff’s Department and the Sacramento County Probation Department. Assistant U.S. Attorneys Michelle Rodriguez and Rosanne L. Rust prosecuted the case.

On December 15, 2016, Serrano pleaded guilty to bank fraud, aggravated identity theft, and possession of stolen U.S. mail. She is scheduled to be sentenced on March 9, 2017.

U.S. District Judge Morrison E. England Jr. is scheduled to sentence Figueras on May 4, 2017. Figueras and Serrano each face up to 30 years in prison for bank fraud, five years in prison for possession of stolen U.S. Mail, and a mandatory two-year consecutive prison sentence for aggravated identity theft. Figueras additionally faces 15 years for possession of more than five identifications for use in the fraudulent scheme. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Kaiser Foundation Health System Inc. has paid $850,000 to settle allegations that a Kaiser Permanente pharmacy in Modesto violated the Controlled Substances Act (CSA) by improperly filling defective prescriptions and by failing to maintain accurate records, U.S. Attorney Phillip A. Talbert announced.

The settlement resolves allegations that a large percentage of prescriptions that the pharmacy filled were incomplete, lacking the patient and dosage information required by the CSA’s implementing regulations. Additionally, the settlement resolves allegations that the pharmacy failed to maintain accurate documentation of incoming and outgoing controlled substances. The investigation identified discrepancies in comparing the pharmacy’s purchase and dispensing records with the actual controlled substances on hand at the pharmacy. Kaiser cooperated with the investigation and has agreed to implement protocols to minimize the chance of future violations.

“One purpose of the CSA is to ensure that pharmacies maintain accurate records to minimize the chance of diversion of powerful and potentially addictive drugs, which wreak havoc on our communities and destroy lives,” U.S. Attorney Talbert said. “Large pharmacy chains and health care conglomerates like Kaiser dispense a high volume of controlled substances to customers and members. Strict compliance with the CSA’s recordkeeping provisions by these entities is imperative.”

“Health care providers and pharmacies that don’t fully comply with the CSA give the public the short end of the stick. DEA will hold entities dispensing controlled substances accountable for their actions to protect public health and safety,” stated DEA Special Agent in Charge John J. Martin.

This case was the product of an investigation by the Fresno DEA Diversion Group. Assistant U.S. Attorney Vincente A. Tennerelli represented the United States in this matter.

SACRAMENTO, Calif. — Jermila McCoy, 34, of Oakland, was sentenced today to nine years and two months in prison for charges related to a large identity theft scheme to defraud the State of California of disability insurance benefits, United States Attorney Phillip A. Talbert announced.

 

According to court documents, McCoy used stolen identities of individuals throughout California to file for disability benefits with the California Employment Development Department. She then caused those disability benefits claims to be certified using the stolen identities of doctors throughout the State of California. Many of the doctors whose identities were used do not certify any disability claims as part of their practice. For example, one physician was employed at a state prison and only treated inmates of that prison. After a claim was filed and certified, McCoy received the fraudulent disability benefits at addresses she controlled. Over 250 stolen identities were used to get fraudulent benefits as part of this scheme and the defendants took over $1.5 million of fraudulent benefits.

 

This case was the product of an investigation by the United States Postal Inspection Service, the U.S. Marshals Service, and the California Employment Development Department, Criminal Investigations. Assistant United States Attorney Jared C. Dolan prosecuted the case.

FRESNO, Calif. —Erik Harald Moje, 40, of Turlock, pleaded guilty today to the importation of anabolic steroids from China, U.S. Attorney Phillip A. Talbert announced.

Anabolic steroids are synthetically produced variants of the naturally occurring male hormone testosterone. They are regulated under the Controlled Substances Act as a Schedule III controlled substance and may not be possessed lawfully in the United States without a prescription.

According to court documents, between December 1, 2013, and September 1, 2015, Moje, a licensed attorney and professional bodybuilder, unlawfully purchased and obtained anabolic steroids from a supplier in China. Encrypted emails documented shipments and indicated that the purchase money would be deposited into the bank account for the Law Office of Eric Moje. He routed shipments of steroids through a UPS mail-forwarding service in New York, as well as private citizens in other parts of the country. In May 2015, agents intercepted a parcel containing one kilogram of steroids, which equates to 40,000 dosage units. In September 2015, the agents executed a search warrant at Moje’s residence. Behind a false wall in the garage, they found 538 10‑milliliter vials containing liquid anabolic steroids, which equates to 10,760 dosage units, and 17,700 steroid capsules, which equates to 17,700 dosage units. They also seized $29,925 in cash from the residence.

In pleading guilty, Moje agreed to the forfeiture of his residence in Turlock. The seized cash and a BMW were previously forfeited.

This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The case was also part of Operation Cyber Juice, a nationwide initiative targeting domestic and international steroid trafficking organizations. Agencies involved in this investigation included the Drug Enforcement Administration, the U.S. Marshals Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Postal Inspection Service, the Turlock Police Department and the Modesto Police Department. Assistant U.S. Attorneys Karen A. Escobar and Kevin C. Khasigian are prosecuting the case.

Moje is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 15, 2017. Moje faces a maximum statutory penalty of 10 years in prison and a $500,000 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. — Soper-Wheeler Company LLC has agreed to pay $1.7 million to settle a lawsuit brought by the United States for damages resulting from a 2009 wildfire that burned 307 acres of national forest land, U.S. Attorney Phillip A. Talbert announced today.

 

The fire, known as the “Silver Fire,” ignited on September 19, 2009, on a steep hillside along Silver Creek, near the community of Spanish Ranch. The lawsuit alleged that a chainsaw being used by Soper-Wheeler’s employees to clear a blockage in a water pipeline struck rocks, causing sparks that ignited dry vegetation. By the time the fire was suppressed, 307 acres of the Plumas National Forest had been burned.

 

Soper-Wheeler is a timber company that conducts logging operations throughout Northern California. It is based in Strawberry Valley, California. Soper-Wheeler had a Special Use Permit, which allowed it to use or occupy lands in the Plumas National Forest. Settlement documents filed with the court require payment of $1.7 million to resolve the lawsuit.

 

“We are very pleased with this settlement, which goes a long way toward compensating the public for the expense of fighting the fire and restoring these public lands,” U.S. Attorney Talbert said. “Those who use public lands in California must be vigilant. We will continue to aggressively pursue compensation from those who are responsible for wildfires that damage our precious national resources.”

 

“Burned areas frequently require some restoration work in order to return them to a resilient state. These settlement funds help us reach our ecological restoration goals in these areas,” said U.S. Forest Service Pacific Southwest Regional Forester Randy Moore.

 

In the last five years, the U.S. Attorney’s Office has secured settlements in 20 different cases involving wildfire damage to federal lands, with settlements valued at nearly $200 million.

 

This case was the product of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Colleen M. Kennedy handled the case.

SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment today against Jeffrey Scott Davis, 59, of Placerville, and Glen Michael Martinka, 67, of Phoenix, Arizona, charging them with conspiracy to commit mail fraud and mail fraud, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between December 2008 and April 2012, Davis and Martinka conspired to embezzle approximately $218,000 from an organic food company by submitting false invoices. Davis was the national sales manager for the company and Martinka was an employee and part owner of a vendor that marketed and sold the company’s products. Davis and Martinka had invoices made that charged the company for services that the vendor did not perform. Davis authorized the payment of the false invoices, and based on these false invoices, the company made checks payable to the vendor and mailed the checks to Martinka in Arizona. Martinka then split the fraudulently obtained money with Davis by mailing checks made payable to Davis.

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

If convicted, Davis and Martinka face a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — On Wednesday, U.S. District Judge Dale A. Drozd sentenced Ronald Castanon, 21, of Pinedale, to 20 years in prison for three counts of interference with commerce by robbery, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Castanon robbed three businesses at gunpoint: the Valero gas station at 10480 California 41 Business Route in Madera on October 3, 2015; the Arco gas station at 4149 N. Clovis Avenue in Fresno on October 4, 2015; and the Yo-Town Yogurt shop at 29424 Auberry Road in Prather on October 4, 2015.

At the Yo-Town Yogurt shop, Castanon entered the store, pointed a silver, long-barreled revolver at the 16-year-old clerk and demanded money. On October 5, 2015, a Fresno County Sheriff’s deputy saw the Chevy Impala that had been involved in the robberies. After Castanon got into the vehicle and drove away, the deputy followed him for several minutes and saw him throw a gun out of the window, which was later recovered. Castanon continued for 130 miles was later arrested with the assistance of air support.

“Project Safe Neighborhoods is a program that spans nationwide. The program is committed to reducing gun and gang crime. ATF has been a part of Project Safe Neighborhood for several years,” said Special Agent in Charge Jill Snyder. “The successful results that stem from partnerships between law enforcement agencies, like the one seen in this case, help to make our streets a safer place.”

This case was the product of an investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fresno County and Madera County Sheriffs’ Offices. This case was brought as part of Project Safe Neighborhoods (PSN), an initiative that brings together federal, state and local law enforcement to combat gun and gang crime. At the core of PSN is increased federal prosecution to incapacitate chronic violent offenders as well as to communicate a credible deterrent threat to potential gun offenders. Assistant U.S. Attorney Kimberly Sanchez prosecuted the case.

FRESNO, Calif. — Krishen Sauble Iyer, 36, of Fresno, pleaded guilty today to conspiring to launder money, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Iyer was the owner of several insurance sales and brokerage businesses in Fresno. Iyer conspired with S.V., whom he knew to be a marijuana trafficker, to launder the proceeds of S.V.’s marijuana trafficking through one of Iyer’s businesses, Health Shield. Iyer and S.V. agreed that S.V. would transfer the drug proceeds to Health Shield, and those funds would then be paid back to S.V. to make the drug proceeds appear to be legitimate salary payments. Iyer issued two Form 1099s to S.V., which claimed that Health Shield paid S.V. $111,952 in 2013 and $164,000 in 2014, even though he never earned all of those funds from the company. S.V. paid Iyer a commission for transferring the funds.

This case is the product of an investigation by the Drug Enforcement Administration, the IRS Criminal Investigation, and the Fresno Police Department. Assistant United States Attorneys Grant B. Rabenn and Jeffrey A. Spivak are prosecuting the case.

Iyer is scheduled to be sentenced by Judge Dale A. Drozd on April 24, 2017 at 10:00 a.m. Iyer faces a maximum statutory penalty of 20 years in prison and a $500,000 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. — Timothy Donald Fialdini, 51, of Sacramento, pleaded guilty on Thursday to 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 as a result of 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 U.S. Marshal deputies with the assistance of state and local law enforcement.

This case is 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 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 is prosecuting the case.

Fialdini is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on April 27, 2017. Fialdini faces a maximum statutory penalty of 10 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. — Patricia Ramona Vasquez, 37, of Stockton, pleaded guilty today to bank fraud, aggravated identity theft, and mail fraud, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between February 3, 2016, and July 7, 2016, Vasquez targeted a victim with the same last name and obtained the victim’s mail to obtain documents and information to steal her identity. Vasquez created an email address for her new identity. On April 4, 2016, Vasquez entered a DMV branch in Sacramento and claimed her California driver’s license was lost or stolen. In doing so, Vasquez obtained a genuine driver’s license with her own picture and the victim’s personal identifying information. On April 15, 2016, Vasquez used the false identity to purchase a Nissan Altima from an auto dealership in Stockton. At the victim’s and creditors expense, Vasquez obtained a car loan from Well Fargo Bank for $16,703. On May 20, 2016, Vasquez opened accounts at Golden 1 Credit Union in Stockton using her phony California driver’s license number, the victim’s SSN, date of birth, true residence address, and signature. After opening the credit union accounts, Vasquez deposited stolen and altered checks in her scheme to obtain cash.

San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated, “We are working closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those responsible for complex identity theft and mail fraud schemes.”

This case is a product of an investigation by the U.S. Postal Inspection Service with assistance from the Stockton Police Department. Assistant U.S. Attorney Michelle Rodriguez is prosecuting the case.

Vasquez is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on April 27, 2017. Vasquez faces a maximum statutory penalty of 30 years in prison and a $1 million fine for bank fraud; 20 years in prison and a $250,000 fine for mail fraud, and a mandatory two-year prison term to be served consecutively to any other sentence for the aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Brandon Anderson-Lacy, 29, of Fairfield, is scheduled to be arraigned today for a tax refund fraud scheme, U.S. Attorney Phillip A. Talbert announced.

On January 12, 2017, a federal grand jury returned a nine-count indictment charging Anderson‑Lacy with conspiring to submit false claims for tax refunds to the Internal Revenue Service.

According to court documents, from February 2011 through March 2012, Anderson-Lacy and others participated in a conspiracy to submit false tax returns to the IRS by obtaining personal identifying information of others, and then submitting returns seeking refunds to which the people listed on the returns were not entitled. To pursue the refunds, false statements were placed on the tax returns regarding income, withholding from income, dependent care, and education expenses, among other things. In addition to the conspiracy charge, Anderson-Lacy is charged with making false claims in connection with eight returns filed in January 2012, each of which falsely listed $18,909 in wages and sought thousands of dollars in refunds. More than $319,000 in refunds were claimed in connection with the conspiracy.

This case is the product of an investigation by the IRS Criminal Investigation with the assistance from the Vacaville Police Department. Assistant U.S. Attorney Christopher S. Hales is prosecuting the case.

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

SACRAMENTO, Calif. — Yan Ebyam, 39, of Missoula, Montana, was sentenced today by U.S. District Judge John A. Mendez to six years in prison for two separate conspiracies to grow and distribute marijuana, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Ebyam conspired with others to develop two industrial‑sized marijuana cultivation sites in Sutter County and Sacramento. Ebyam and his co‑conspirators sought to make profits from the illegal distribution of large amounts of marijuana. On June 21, 2011, federal and state agents executed seven federal search warrants in Sacramento, Sutter, and Tehama Counties. Two of these warrants were executed at the sites of large, commercial greenhouses located at the Jopson Ranch in Rio Oso and at the Cal-Nevada Wholesale Florist in Sacramento. Law enforcement officers seized over 5,000 marijuana plants in all stages of growth from these two locations: approximately 2,168 plants at Jopson Ranch and approximately 3,305 plants at Cal-Nevada Florist. Ten defendants were charged in these two cases, and all have now pleaded guilty to participation in the conspiracies and have been sentenced to prison.

These cases were the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, the Sutter County Sheriff’s Department, and the California Bureau of Narcotic Enforcement. It was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. Assistant U.S. Attorneys Jason Hitt and Todd A. Pickles prosecuted the cases.

SACRAMENTO, Calif. — Nicholas Martin Coberley, 45, of Pollock Pines, was sentenced today by U.S. District Judge John A. Mendez to 27 months in prison, to be followed by three years of supervised release for assault on a federal employee with a deadly weapon, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on June 20, 2016, Coberley attacked a Lassen Volcanic National Park ranger who had been called out to investigate reports of a man walking in the middle of the road at 9:00 p.m., yelling loudly. When the ranger approached, Coberley jumped into the back of the ranger’s truck, grabbed a firefighting tool, and began hitting the truck’s passenger compartment with the tool, causing more than $2,000 in damage to the roof and windshield. Moments later, Coberley smashed out the rear window with an axe, climbed into the passenger compartment, and put the ranger in a chokehold. At that point, Coberley swung an axe at the ranger’s head from behind while the truck was in motion. The ranger was able to speak calmly with Coberley and defused the situation. Coberley returned to his residence near the park’s boundary and was arrested later without incident.

This case was the product of an investigation by the National Parks Service and the Plumas County District Attorney's Office with assistance from the Plumas County Sheriff’s Office and the California Highway Patrol. 

Lassen Volcanic National Park Chief Ranger John Fish stated: “The National Park Service would like to thank the U.S. Attorney’s Office and Plumas County District Attorney’s Office for their support in the successful prosecution of Mr. Coberly. Visitor and employee safety is of paramount importance to the National Park Service. We would further like to thank the Plumas County Sheriff’s Office and the CHP in helping resolve the situation with no injuries of significance to park visitors or our employee.”

FRESNO, Calif. — Jarrod M. Langford, 25, of Orlando, Florida, was arrested today in Florida after a federal grand jury in Fresno returned an indictment charging him with conspiracy to commit credit card fraud and aggravated identity theft, United States Attorney Phillip A. Talbert announced.

According to court documents, Langford was assigned as an aviation electrician’s mate with the United States Navy in Lemoore, California. From about June 2011 until August 2015, he conspired with others to fraudulently acquire and use credit card account numbers to purchase and resell over the internet voucher codes redeemable for consumer items such as wrist watches, jewelry, computer software applications and electronic devices. Langford used various methods to fraudulently acquire other peoples’ credit card information, including purchasing the information over the internet.

In September 2012, Langford fraudulently possessed more than 2,500 records of credit card account numbers and the associated account holders’ personal identifying information, such as names, addresses, telephone numbers, and email addresses.

To hide his actual location and conceal his involvement in his fraudulent activities, Langford installed an application on his computers that would establish a virtual private network (VPN) in furtherance of conducting anonymous encrypted internet sessions and giving the appearance that he was located outside of California.

Throughout the course of the scheme, Langford fraudulently purchased approximately $340,000 of consumer products and unauthorized voucher codes redeemable for such items.

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the United States Attorney’s Office for the Northern District of Florida. Assistant United States Attorney Christopher D. Baker is prosecuting the case.

If convicted, Langford faces a maximum statutory penalty of five years in prison for the conspiracy charge, 10 years in prison for each of the seven counts of fraudulent use and possession of unauthorized credit cards, an additional two years in prison for each of two counts of aggravated identity theft, and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — After a three–day trial, a federal jury found Kulwant (Ken) Singh Sandhu, 56, of Tracy, guilty today of two counts of making harassing interstate telephone calls, U.S. Attorney Phillip A. Talbert announced. The trial was held before U.S. District Judge Garland E. Burrell Jr.

“This conviction demonstrates the Office of Inspector General’s commitment to investigate individuals who harass SEC officials in carrying out their mission of protecting investors, maintaining fair and orderly functioning of securities markets, and facilitating capital formation. I would like to express my appreciation to the team from the U.S. Attorney’s Office, the FBI, and the SEC OIG who worked diligently to bring this matter to justice.”

According to evidence presented at trial, since at least 2012, Sandhu has been making harassing phone calls to personnel at the U.S. Securities and Exchange Commission (SEC), in Washington, D.C., and other private individuals. During 2015, Sandhu placed over 3,000 harassing phone calls to SEC employees, leaving at least 350 lengthy voicemails and also made hundreds of phone calls to another nongovernmental person. According to the evidence at trial, many of Sandhu’s phone calls to employees and his voicemails were profanity-filled tirades that repeatedly called for SEC personnel and others to be, among other things, rounded up, publicly hanged, water-boarded, burned alive, shot, and blown up with rockets and tanks. His comments were often sexually graphic and targeted individuals.

This case was the product of an investigation by the Federal Bureau of Investigation and the Security & Exchange Commission’s Office of Inspector General. Assistant United States Attorneys Nirav Desai and James Conolly are prosecuting the case.

Sandhu is scheduled to be sentenced by Judge Burrell on April 7, 2017. He faces a maximum statutory penalty of two years in prison on each count 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. — U.S. District Judge Morrison C. England Jr. sentenced Bret Allan Nichols, 32, of Paradise, today to 30 years in prison for production of child pornography to be followed by a lifetime term of supervised release, United States Attorney Phillip A. Talbert announced. The 30-year sentence is the maximum punishment allowed by the statute.

On June 18, 2015, Nichols pleaded guilty to production of child pornography. According to court documents, on December 12, 2012, law enforcement in the United States received a referral from the Danish National Police related to a video containing child pornography. Further investigation revealed that the video was made by a Florida couple running a business that used a computer to stream illicit sexual sessions at the request of customers. In August 2012, Nichols paid the Florida couple to produce child pornography and recorded it. A forensic search of Nichols’ computer seized during the subsequent search of his residence found multiple videos that Nichols had recorded of five additional child victims in Colombia and the Philippines.

The Florida couple were prosecuted in the Northern District of Florida and received sentences of 29.5 and 35 years in prison.

“Nichols committed horrendous crimes against multiple children, and the substantial sentence that the court imposed today reflects the seriousness of his crimes,” stated U.S. Attorney Talbert. “Every child deserves a childhood safe from abuse like this. Our office is committed to protecting society, and particularly children, by prosecuting cases like this.”

This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney William Wong 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. — Costco Wholesale will pay $11.75 million to settle allegations that its pharmacies violated the Controlled Substances Act (CSA) when they improperly filled prescriptions for controlled substances. The settlement resolves allegations that Costco pharmacies filled prescriptions that were incomplete, lacked valid DEA registration numbers or were for substances beyond various doctors’ scope of practice. Additionally, the settlement resolves allegations that Costco failed to keep and maintain accurate records for controlled substances at its pharmacies and centralized fill locations, which resulted in a significant shortage at the West Sacramento central fill pharmacy.

The settlement was announced today by U.S. Attorneys Annette L. Hayes for the Western District of Washington, Michael C. Ormsby for the Eastern District of Washington, Eileen M. Decker for the Central District of California, Barbara L. McQuade for the Eastern District of Michigan, and Phillip A. Talbert for the Eastern District of California.

“Pharmacies are the gatekeepers responsible for ensuring the lawful use of powerful drugs that have a legitimate medical purpose but are easily abused. The CSA provides the statutory oversight to ensure that pharmacies keep meticulous records,” U.S. Attorney Talbert stated. “The successful resolution of this matter demonstrates the Department of Justice’s commitment to enforcing the CSA.”

“Last year, over 50,000 Americans died as a result of drug overdoses, many of which were related to the misuse of prescription drugs. This settlement demonstrates the accountability and responsibility that go along with handling controlled prescription drugs,” said DEA Assistant Administrator Louis Milione. “DEA works every day to reinforce good corporate practices through outreach and education efforts and, when appropriate, with administrative and criminal action.”

Under the settlement reached January 18, 2017, Costco acknowledges that between January 1, 2012, and December 31, 2015, certain Costco pharmacies dispensed controlled substances inconsistent with their compliance obligations under the CSA and its implementing regulations. The violations include: filling prescriptions from practitioners who did not have a valid DEA number; incorrectly recording the practitioner’s DEA number; filling prescriptions outside the scope of a practitioner’s DEA registration; filling prescriptions that did not contain all the required information; failing to maintain accurate dispensing records; and failing to maintain records for their central fill locations in Sacramento, California and Everett, Washington.

U.S. Attorney McQuade stated, “In light of the prescription pill and opioid overdose epidemic we are seeing across the country, compliance with regulations governing pharmacies is more important than ever. We applaud Costco for working with DEA and taking steps to tighten up its compliance to ensure that prescription pills do not end up on the street market.”

“These are not just administrative or paperwork violations — Costco’s failure to have proper controls in place in its pharmacies played a role in prescription drugs reaching the black market,” said U.S. Attorney Decker. “Costco pharmacies in Southern California filled numerous prescriptions for drugs that should not have been sold to consumers because of its flawed system for validating DEA registration numbers.”

U.S. Attorney Ormsby said “Opioid misuse has reached epidemic levels in the United States. This important matter is yet another example of the tenacious dedication of Drug Enforcement Administration investigators in uncovering and addressing corporate regulatory noncompliance. The DEA must be commended for its superb efforts in combating the opioid problem at so many different levels, including regulatory compliance.”

“Pharmacies across this country are on the leading edge of the battle against our prescription drug abuse crisis,” said U.S. Attorney Hayes. “A company such as Costco that distributes a significant volume of controlled substances has a responsibility to ensure it complies with regulations that help prevent opioids and other dangerous drugs from being misused or otherwise added to the illegal marketplace. I commend the Drug Enforcement Administration investigators for uncovering the violations at issue in this case, and working with Costco to ensure that systems are put in place to prevent controlled substances from ending up in the wrong hands.”

To address the numerous issues uncovered in this investigation, Costco surrendered its DEA Registration at its central fill location in West Sacramento and accordingly, lost the ability to handle controlled substances. Costco also made improvements in its pharmacies by purchasing a new pharmacy management system at a total budgeted five-year cost of approximately $127 million. Additionally, Costco implemented a three-tier audit program of its pharmacy locations: Tier 1, done by pharmacy managers and regional pharmacy supervisors; Tier 2, completed by an Internal Audit group consisting of three auditors and an audit supervisor; and Tier 3, an External Audit of 40 annual audits.

Under the terms of the settlement, over the next three years, DEA is allowed to conduct unannounced and unrestricted inspections of all DEA registered Costco pharmacy locations without Administrative Inspection Warrants. The Drug Enforcement Administration monitors pharmacy prescribing practices to ensure compliance with federal law. Pharmacies found in violation face escalating penalties up to the revocation of their DEA Registration number — the authorization that allows them to write prescriptions for controlled substances.

This case was investigated by DEA Diversion Groups in Seattle, Los Angeles, Sacramento and Detroit. While this settlement is national in scope, the settlement was negotiated by the U.S. Attorney’s Offices in the Western and Eastern Districts of Washington, Central and Eastern Districts of California and Eastern District of Michigan. Assistant U.S. Attorneys Anderson Berry and Kurt A. Didier handled the matter for the Eastern District of California.

SACRAMENTO, Calif. — Joseph Wood, 67, of Yuba City, pleaded guilty today to possession of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on November 20, 2009, law enforcement agents executed a search warrant at Wood’s home in Yuba City. Subsequent forensic review of computers and hard drives that belonged to Wood located several hundred images and videos of child pornography.

This case is the product of an investigation by the California Department of Justice Major Crimes Team. Assistant U.S. Attorneys Matthew G. Morris and Jeremy J. Kelley are prosecuting the case.

Wood is scheduled to be sentenced by Judge Kimberly J. Mueller on April 26, 2017. Wood faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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. — Nathan Hoffman, 56, of Los Angeles, pleaded guilty today to manufacturing marijuana as part of a larger conspiracy to distribute marijuana throughout California, U.S. Attorney Phillip A. Talbert announced.

As part of his plea agreement, Hoffman agreed to give up his license to practice law in the State of California and not contest any disbarment proceedings instituted by the State Bar of California.

According to court documents, Hoffman, a Los Angeles attorney with offices on Wilshire Boulevard, conspired with Yan Ebyam, Hung Nguyen, and others to develop two industrial-sized marijuana cultivation sites in Sutter County and Sacramento. Hoffman created legal entities designed to lend legitimacy to the marijuana cultivation and distribution, but, as part of the plea agreement, Hoffman admitted that he and his co-conspirators sought to make profits from the illegal distribution of large amounts of marijuana. Much of the marijuana grown in Northern California from this conspiracy was distributed by Nguyen. Nguyen, who entered a guilty plea last week, operated two Southern California marijuana stores, the Canna Clinic of Garden Grove and the South Bay Canna Clinic in Torrance.

This case is part of investigations into industrial-scale marijuana cultivation conspiracies operating within the Eastern District of California. A total of 12 defendants were indicted for crimes relating to their marijuana cultivation in this case and in two related cases (United States v. Yan Ebyam et al. 2:11-cr-275-JAM and 2:11-cr-276-JAM). All defendants have now pleaded guilty to participation in the conspiracies, and most have been sentenced to prison.

According to court documents, on June 21, 2011, federal and state agents executed seven federal search warrants in Sacramento, Sutter, and Tehama Counties. Two of these warrants were executed at the sites of large, commercial greenhouses located at the Jopson Ranch in Rio Oso and at the Cal-Nevada Wholesale Florist in Sacramento. Law enforcement officers seized over 5,000 marijuana plants in all stages of growth from these two locations: approximately 2,168 plants at Jopson Ranch and approximately 3,305 plants at Cal-Nevada Florist. Two leaders arrested at the grow sites, Yan Ebyam and Aimee Sisco, admitted their involvement in the marijuana cultivation business.

Sentencing for Hoffman is set for April 18, 2017, before U.S. District Judge John A. Mendez. Hoffman faces 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.

These three cases are the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, the Sutter County Sheriff’s Department, and the California Bureau of Narcotic Enforcement. It was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. Assistant U.S. Attorneys Jason Hitt and Todd A. Pickles are prosecuting the cases.

SACRAMENTO, Calif. — McKesson Corporation, one of the nation’s largest distributors of pharmaceutical drugs, agreed to pay a record $150 million civil penalty for alleged violations of the Controlled Substances Act (CSA). The settlement resolves allegations that McKesson failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances distributed to its independent and small chain pharmacy customers.

The nationwide settlement was announced today by U.S. Attorney Phillip A. Talbert, Drug Enforcement Administration Special Agent in Charge John J. Martin and the U.S. Attorneys for 11 other federal districts.

“The abuse of prescription painkillers has become an epidemic,” said United States Attorney Talbert. “The Controlled Substances Act is a tool to assist the DEA with monitoring the movement of prescription drugs and prevent the diversion of powerful drugs to unintended users who may be injured by them. Our office will continue to work with our law enforcement partners to investigate these cases and enforce federal law.”

“Accountability is key for all DEA registrants who distribute controlled substances; detecting and reporting suspicious orders is part of the equation,” said DEA Special Agent in Charge John J. Martin. “DEA is committed to utilizing a variety of tools, which include implementing new methods for accountability, to combat the prescription drug epidemic.”

The nationwide settlement requires McKesson to suspend sales of controlled substances from distribution centers in Colorado, Ohio, Michigan and Florida for multiple years. The staged suspensions are among the most severe sanctions ever agreed to by a DEA registered distributor. The settlement also imposes new and enhanced compliance obligations on McKesson’s distribution system.

In 2008, McKesson agreed to a $13.25 million civil penalty and administrative agreement for similar violations. In this case, the government alleged again that McKesson failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances distributed to its independent and small chain pharmacy customers — i.e., orders that are unusual in their frequency, size, or other patterns. From 2008 until 2013, McKesson supplied various U.S. pharmacies an increasing amount of oxycodone and hydrocodone pills, frequently misused products that are part of the current opioid epidemic.

The government’s investigation developed evidence that even after designing a compliance program after the 2008 settlement, McKesson did not fully implement or adhere to its own program. In Colorado, for example, McKesson processed more than 1.6 million orders for controlled substances from June 2008 through May 2013, but reported just 16 orders as suspicious, all connected to one instance related to a recently terminated customer.

In addition to the monetary penalties and suspensions, the government and McKesson agreed to enhanced compliance terms for the next five years. Among other things, McKesson has agreed to specific, rigorous staffing and organizational improvements; periodic auditing; and stipulated financial penalties for failing to adhere to the compliance terms. Critically, the settlement will require McKesson to engage an independent monitor to assess compliance — the first independent monitor of its kind in a CSA civil penalty settlement.

This was a multidistrict investigation that involved the following DEA Field Divisions: Boston Field Division, Chicago Field Division, Denver Field Division, Detroit Field Division, Miami Field Division, Newark Field Division, San Francisco Field Division, St. Louis Field Division, and Washington District Office. In addition to the Eastern District of California, the following U.S. Attorney’s Offices participated in the case: Central District of California, District of Colorado, Middle District of Florida, Eastern District of Kentucky, Northern District of Illinois, District of Massachusetts, Eastern District of Michigan, District of Nebraska, District of New Jersey, Northern District of West Virginia, and Western District of Wisconsin.

U.S. Attorneys’ Offices for the District of Colorado and the Northern District of West Virginia, along with DEA Office of Chief Counsel and Diversion Control Division, led the civil settlement negotiations. DEA’s Denver, Detroit and Miami Field Divisions, and its Washington Division Office led the administrative and civil investigation. The Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) also coordinated and assisted in negotiating certain portions of the settlement. Assistant United States Attorneys Amanda Rocque (Colorado) and Alan McGonigal (NDWV) represented the United States in the civil penalty investigations and negotiations. Associate Chief Counsel Lee Reeves and Senior Attorneys Dedra Curteman, Dana Hill and Krista Tongring represented DEA in the investigations and negotiations. Trial Attorneys Harry Matz and Kirtland Marsh were involved for NDDS. McKesson has a branch in Sacramento. Assistant U.S. Attorneys Kelli L. Taylor and Kurt Didier handled the matter for the Eastern District of California.

FRESNO, Calif. — Mary Williams, 70, of Fresno, pleaded guilty today to embezzling from a pension plan, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Williams was the Chief Executive Officer of Aeroplate Corporation, an engineering and contracting firm in Fresno. From June 2011 to November 2016, Williams embezzled approximately $509,000 from a pension plan that Aeroplate established for its employees. One of the fund’s assets was a set of real estate parcels in Fresno that at one point was appraised at over $900,000 in value.

Under federal law, assets that belong to pension plans can only be used to fund the plan, which must pay future benefits to employees, and not the business that started the plan.

According to the plea agreement, Williams and the company used the properties to raise money for the company. Eventually, the company was unable to repay its loans, and the properties were foreclosed on. The fund became insolvent because it did not have enough money to pay expected benefit claims. However, the plan’s benefits are federally insured by the Pension Benefit Guaranty Corporation, which protects employees from losing their benefits when their plans are insolvent.

This case is the product of an investigation by the U.S. Department of Labor’s Employee Benefit Security Administration. Assistant U.S. Attorney Michael G. Tierney is prosecuting the case.

Williams is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on April 3, 2017. Williams faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Miguel Angel Morales, 32, of Valley Springs, was sentenced today by U.S. District Judge John A. Mendez to 15 years and 8 months in prison for receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between August 16, 2013, and September 30, 2013, Morales used a smart phone application to induce and entice a 15-year-old girl to produce pornographic photos and videos of herself and to send those images to Morales. During chats with the minor victim, Morales discussed her age and the fact that he would face serious trouble if their activities were discovered. According to court documents, at the time of the offense, Morales had a prior conviction from 2010 for unlawful sex with a minor. After serving his prison term, Morales will serve 10 years of supervised release.

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

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. 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. — Chaudhry Ahmad Farooq, 24, of Brooklyn, New York, pleaded guilty today to one count of conspiring to distribute heroin, U.S. Attorney Phillip A. Talbert announced.

According to court documents, from approximately November 2015 through August 2016, Farooq conspired with co-defendant Abdullah Almashwali to distribute heroin on AlphaBay, a dark web marketplace. Under the moniker “DarkApollo,” Farooq distributed more than 600 grams of heroin in exchange for more than $145,000 in Bitcoin.

Dark web marketplaces are operated on computer networks designed to conceal the true Internet Protocol (IP) address of the computers accessing the network. Dark web marketplaces allow for payments to be made only in the form of digital currency, most commonly Bitcoin. While not inherently illegal, digital currency is used by dark web marketplaces because online transactions in digital currency can be completed without a third-party payment processor and are therefore perceived to be more anonymous and less vulnerable to law enforcement scrutiny.

This case is the product of an investigation by the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service, Criminal Investigation, the U.S. Postal Inspection Service, and the Fresno Police Department. Assistant U.S. Attorneys Grant B. Rabenn and Ross Pearson are prosecuting the case.

Both Farooq and Almashwali are in federal custody. Almashwali is scheduled for trial on April 18, 2017. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Farooq is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 17, 2017. Farooq faces 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.

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

SACRAMENTO, Calif. — Zaid Bader Jacob, 47, of West Sacramento, is scheduled to be arraigned today after a federal grand jury returned an indictment charging him with receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, law enforcement agents executed a search warrant at Jacob’s residence in April 2015 after they identified an IP address there offering child pornography over the internet via a peer-to-peer network. The indictment alleges that between January and April 2015, Jacob used a computer to receive one or more visual depictions of a minor engaging in sexually explicit conduct.

This case is the product of an investigation by the Federal Bureau of Investigation and 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 Shelley D. Weger is prosecuting the case.

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

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 U.S. 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. — Hung C. Nguyen, 40, of Moorpark, pleaded guilty today to manufacturing marijuana as part of a larger conspiracy to distribute marijuana throughout California, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Nguyen conducted a marijuana cultivation business with Nathan Hoffman, a Los Angeles attorney with offices on Wilshire Boulevard, and others using marijuana grown in Sutter County and Sacramento. Nguyen operated two Southern California marijuana stores, the Canna Clinic of Garden Grove and the South Bay Canna Clinic in Torrance. Nguyen was a distributor for the marijuana produced in Northern California. According to the plea agreement, one of Nguyen’s dispensary’s could sell more than $10,000 of marijuana in a single busy day.

This case is part of investigations into industrial-scale marijuana cultivation conspiracies operating within the Eastern District of California. A total of 12 defendants were indicted for crimes relating to their marijuana cultivation in this case and in two related cases (United States v. Yan Ebyam et al. 2:11-cr-275-JAM and 2:11-cr-276-JAM). All defendants except for Hoffman have pleaded guilty to participation in the conspiracies, and most have been sentenced to prison. Hoffman is scheduled for trial on January 23, 2017. The charges against Hoffman are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

According to court documents, on June 21, 2011, federal and state agents executed seven federal search warrants in Sacramento, Sutter, and Tehama Counties. Two of these warrants were executed at the sites of large, commercial greenhouses located at the Jopson Ranch in Rio Oso and at the Cal-Nevada Wholesale Florist in Sacramento. Law enforcement officers seized over 5,000 marijuana plants in all stages of growth from these two locations: approximately 2,168 plants at Jopson Ranch and approximately 3,305 plants at Cal-Nevada Florist. Two leaders arrested at the grow sites, Yan Ebyam and Aimee Sisco admitted their involvement in the marijuana cultivation business.

Sentencing for Nguyen is set for April 18, 2017, by U.S. District Judge John A. Mendez. Nguyen faces 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.

These three cases are the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, the Sutter County Sheriff’s Department, and the California Bureau of Narcotic Enforcement. It was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply. Assistant U.S. Attorneys Jason Hitt, Todd A. Pickles, and Samuel Wong are prosecuting the cases.

SACRAMENTO, Calif. — John K. Cabrera, 35, of Sacramento, was sentenced today by United States District Judge Garland E. Burrell Jr. to over seven years in prison for distribution of child pornography, United States Attorney Phillip A. Talbert announced.

 

According to court documents, between April 24, 2014, and April 27, 2014, Cabrera used the internet to transmit images of prepubescent children engaged in sexually explicit conduct with another person.

 

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

 

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

SACRAMENTO, Calif. — John K. Cabrera, 35, of Sacramento, was sentenced today by United States District Judge Garland E. Burrell, Jr. to over 7 years in prison for distribution of child pornography, United States Attorney Phillip A. Talbert announced.

 

According to court documents, on or about April 24, 2014, and continuing through on or about April 27, 2014, Cabrera used the Internet to transmit images of prepubescent children engaged in sexually explicit conduct with another person.

 

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 United States Attorney Rosanne Rust prosecuted the case.

 

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

 

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SACRAMENTO, Calif. — Theodore Allen Leleaux, 34, of Orangevale, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 15 years in prison for distribution of child pornography with a prior conviction relating to the sexual abuse of a minor, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in December 2013, agents in Maine and Wyoming investigating distribution of child pornography received unsolicited emails from Leleaux seeking to trade child pornography with accounts that the agents had taken over. On February 2014, a search warrant was executed at Leleaux’s residence. On his cellphone, agents found at least 5,000 images and 400 videos of child pornography. At the time he sent the emails, Leleaux had been convicted in the Superior Court of Contra Costa County of having unlawful sex with a minor who was more than three years younger than him.

“While the internet has positively transformed the lives of millions, some have chosen to use it as a tool to prey on innocent victims,” said Ryan L. Spradlin, Special Agent in Charge of HSI San Francisco. “This sentence reflects the seriousness of the crimes of the defendant who repeatedly disregarded the law while causing long-lasting damage to his young victims.”

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney Matthew 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. — A federal grand jury returned a three-count indictment today against Courtney Dale Eames, 55, of Susanville, charging him with possession with intent to distribute methamphetamine, being a felon in possession of a firearm, and possession of stolen firearms, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Susanville Police Officers executed search warrants at Eames’s address in September 2016. In the course of the search, the officers found a package of methamphetamine as well as 32 different firearms and several hundred rounds of ammunition.

This case is the product of an investigation by the FBI and the Susanville Police Department. Assistant U.S. Attorney Owen Roth is prosecuting the case.

If convicted, Eames faces a maximum statutory penalty of 40 years in prison on the methamphetamine charge and a substantial 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. — Richard J. Beall, 49, of Stockton, was sentenced today by U.S. District Judge Morrison C. England Jr. to 15 years in prison for distribution of methamphetamine and possession of a firearm in furtherance of a drug-trafficking crime, U.S. Attorney Phillip A. Talbert announced.

Beall pleaded guilty to the charges on September 29, 2016. According to the plea agreement, in February and March 2016, Beall engaged in methamphetamine transactions with an undercover agent and a confidential informant. During one transaction in Beall’s residence, he sat on a couch with a semi-automatic pistol on an end table near his left hand. Beall cannot legally possess firearms because he is a convicted felon.

“At ATF, our highest priority is reducing violent crime within our communities,” said ATF Special Agent in Charge Jill Snyder. “This case is an example of the work ATF agents do on a daily basis to protect the public from armed drug traffickers who threaten our neighborhoods.”

According to court documents, on March 29, 2016, Beall was seen driving a truck that had been reported stolen. When local patrol officers initiated a traffic stop, Beall drove off and led the officers on a chase through orchards and farmlands before abandoning the truck and climbing a cherry tree. The arresting officers got him down from the tree and found a loaded pistol in his left-rear pocket. Later that day, officers obtained and executed a search warrant at Beall’s residence and found a loaded AK-47 rifle with a high-capacity magazine and two additional handguns.

This case was a product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Stockton Police Department, and the California Highway Patrol. Assistant U.S. Attorney Ross K. Naughton prosecuted the case.

SACRAMENTO, Calif. — Lejohn Windom Sr., 53, of Sacramento, was sentenced today by U.S. District Judge Troy L. Nunley to seven years and 10 months in prison and ordered to pay $1.1 million in restitution to the IRS for mail fraud, conspiracy to submit false claims, and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between 2010 and 2013, Windom and his co‑conspirators filed 682 income tax returns, requesting nearly $2 million in fraudulent refunds. Of those returns, more than $1.1 million in fraudulent refunds were paid. Windom and others used stolen identities to request the tax refunds and then forged the names of the taxpayers to make the fraudulent refund checks payable to themselves.

“The false tax refund scheme perpetrated by Lejohn Windom and other co-conspirators victimized hundreds of taxpayers and stole over one million dollars from all American taxpayers,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “With the April 18 tax deadline approaching, it is important taxpayers know IRS-Criminal Investigation and our law enforcement partners are actively combating identity theft involving their personal information used to file false tax returns. The sentence imposed today by the court sets a clear example that tax fraud does not pay.”

This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service. Assistant U.S. Attorney Matthew G. Morris is prosecuting the case.

Co-defendants Tracy Hartway and Audrey Johnson have pleaded guilty and are scheduled for sentencing on January 12, 2017, and January 26, 2017 respectively. Co-defendant Lejohn Windon Jr. is scheduled for a status hearing on January 12, 2017. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — John Stuart Hill, 33, of Granite Bay, was sentenced today by U.S. District Judge Morrison C. England Jr. to two years and three months in prison and ordered to pay $1.4 million in restitution to eight victims for wire fraud and mail fraud in connection with a real estate investment scheme, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between August 9, 2011, and April 2013, Hill, acting under the business name Granite Bay Investment Partners (GBIP), solicited and received money from investors who intended that their money would be used to purchase, rehabilitate, and resell residential properties in the Sacramento area. In reality, Hill used the money for his own personal expenses, made false accounting entries on statements he sent to his investors, and misrepresented the purchase and resale prices of the properties in question. In some cases, the properties that Hill alleged his investors to be rehabilitating had never been purchased by Hill or GBIP. In other cases, multiple investors were told that they were partners on the same property in order to increase the amount invested to far above the purchase and rehabilitation costs.

According to court documents, Hill received at least $1.9 million from investors, only $600,000 of which was ever returned, leaving at least $1.3 million unaccounted for. On September 29, 2016, Hill pleaded guilty to wire fraud and mail fraud.

This case was the product of an investigation by the United States Secret Service. Assistant United States Attorney Matthew G. Morris prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned a 69-count indictment today against John A. Crosby, 53, of Redding; Ines S. Crosby, 73, of Orland; and Leslie A. Lohse, 62, of Glenn County, charging them with conspiracy to embezzle tribal funds, embezzlement of tribal funds, false statements to federal agents, and tax charges, U.S. Attorney Phillip A. Talbert announced.

According to court documents, John Crosby, Ines Crosby, and Leslie Lohse were officers and employees of the Paskenta Band of Nomlaki Indians in Tehama and Glenn Counties. The Tribe obtained substantial revenues from the operation of the Rolling Hills Casino located on tribal land. Between January 2009 and May 2014, the defendants, who had access to tribal funds, used that money for their own personal expenses. They sought to conceal the embezzlement, including creating a false line-of-credit document and remotely accessing the Tribe’s computers to destroy evidence.

According to the indictment, in June 2015 during the investigation, each defendant falsely stated to a federal agent that they had received a $5 million line of credit from the Tribe. Further, John Crosby and Leslie Lohse submitted tax returns that omitted the embezzled funds. For her part, Ines Crosby failed to file any tax returns. It is estimated that the defendants embezzled at least $6 million in tribal funds.

This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Todd A. Pickles and Matthew M. Yelovich are prosecuting the case.

If convicted, each of the defendants face a maximum statutory penalty of 20 years in prison and a $250,000 fine on the charge of falsifying a document in a federal investigation. The maximum statutory penalty for each count of conspiracy, embezzling, and making a false statement to a government agent is five years in prison and a $250,000 fine. The maximum statutory penalty for filing a false tax return is three years in prison and a $25,000 fine, and one year in prison and a $25,000 fine for failure to file a tax return. 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 an indictment Thursday against Abhijit Prasad, 49, of Tracy, charging him with 31 counts of visa fraud and two counts of aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.

According to the indictment, Prasad filed 31 petitions for H-1B nonimmigrant visas containing false statements, made under penalty of perjury, as to purported work projects to be performed at various locations in California. The indictment further alleges that Prasad obtained two H-1B visas procured by fraud and false statements, and used the means of identification of a real person to effectuate his visa fraud scheme.

The case is the product of an investigation by the U.S. Department of State, Diplomatic Security Service’s representative to the Document and Benefit Fraud Task Force (DBFTF), overseen by the Department of Homeland Security’s Homeland Security Investigations. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation. Assistant U.S. Attorney Nirav Desai is prosecuting the case.

If convicted, Prasad faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the visa fraud. He faces a two-year mandatory, consecutive prison sentence a $250,000 fine for the aggravated identity theft counts. 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.