Eastern District of California

FRESNO, Calif. — Vivian Marie Williams, 51, of Stockton, pleaded guilty today to a conspiracy to submit false claims for income tax refunds and to identity theft, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, Williams was a tax preparer who operated out of her home in Stockton, using the business name Williams Financial Service. Between January 2010 and March 2011, Williams submitted tax returns for both legitimate clients and in the names of victims of identity theft. The tax returns for legitimate clients reported inflated business and wage income, which allowed the taxpayers to claim a higher tax refund as a result of the Earned Income Tax Credit and the Child Tax Credit. The tax returns for victims of identity theft were submitted without the knowledge of the taxpayers, and allowed Williams to collect tax refunds on their behalf. During the scheme, Williams admitted she submitted at least $61,531 in false claims to the IRS.

Co-defendant Darrell Lemont Morris, 45, of Stockton, allegedly conspired with Williams and allowed her to use his bank accounts for the deposit of tax refunds of victims of identity theft, and then shared in the proceeds with Williams. The case against Morris is still pending. He is scheduled for a status conference on July 25, 2016, at 1:00 PM before U.S. Magistrate Judge Barbara A. McAuliffe. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Mark J. McKeon is prosecuting the case.

Williams is scheduled to be sentenced by United States District Judge Dale A. Drozd on October 17, 2016. Williams faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for the conspiracy; and 15 years in prison and a $250,000 fine for 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.

FRESNO, Calif. — One defendant was sentenced and one pleaded guilty today to conspiring to cultivate marijuana in the Sierra National Forest in Madera County with the intent to distribute, Acting United States Attorney Phillip A. Talbert announced.

Francisco Javier Gomez-Rodriguez, 38, of Pihuamo, Jalisco, Mexico, was sentenced today by United States District Judge Lawrence J. O'Neill to three years and five months in prison and ordered to pay $8,750 in restitution to the U.S. Forest Service.

Alejandro Ramirez-Rojo, 31, of Mexico, pleaded guilty to conspiring to grow marijuana with the intent to distribute. Sentencing is scheduled for September 26, 2016.

According to court documents, between March 1, 2015, and August 4, 2015, in the Saginaw Creek area of the Sierra National Forest, co-defendant Humberto Ceballos-Rangel, 37, of Mexico, was found at a campsite within the marijuana cultivation site where agents found 5,904 marijuana plants and a loaded firearm. Gomez-Rodriguez and two other co-defendants, Ramirez‑Rojo and Anthony Isaac Santibanez, 20, of Woodlake, California, were found a short time later approaching the grow site in a vehicle used for delivering supplies to the grow site. A .22-caliber rifle was found in the vehicle, along with .40-caliber rounds of ammunition. Judge O’Neill also ordered the forfeiture of the two firearms and ammunition.

The cultivation operation caused significant environmental damage. Native vegetation was cut to accommodate the marijuana plants, foot trails, and cooking and sleeping areas. Water was diverted from a nearby creek to irrigate the marijuana plants. A large quantity of trash was also found in trash pits and throughout the site.

Ceballos-Rangel pleaded guilty and was sentenced in April to three years in prison. Santibanez also pleaded guilty and is scheduled for sentencing August 15, 2016. The maximum statutory sentence for conspiracy to manufacture marijuana and to possess with the intent to distribute is 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 is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), the California Department of Fish and Wildlife, and Madera County Narcotic Enforcement Team (MADNET). Assistant United States Attorney Karen A. Escobar is prosecuting the case.

FRESNO, Calif. —Gabriel Michael Anderson, 30, of Corona, pleaded guilty today to possession of analog, digital, and electronic images of U.S. obligations and securities, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, on October 11, 2014, after a routine traffic stop by the California Highway Patrol in Big Pine, Anderson was found to be in possession of counterfeit U.S. $100 bills. During a search of a storage shed where Anderson was storing his belongings, law enforcement officers found evidence related to the manufacturing of counterfeit bills, including cut and uncut counterfeit bills, copies of security devices including watermarks and security strips, and computers. Anderson admitted that he had manufactured approximately $50,000 in counterfeit bills over the past 10 years.

This case is the product of an investigation by the U.S. Secret Service and the California Highway Patrol. Assistant United States Attorney Mark J. McKeon is prosecuting the case.

Anderson is scheduled to be sentenced by United States District Judge Dale A. Drozd on October 17, 2016. Anderson faces a maximum statutory penalty of 25 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Gregory M. Cox, 51, of Vallejo, charging him with being a felon in possession of a firearm, unlawful possession of a short-barrel shotgun, and unlawful possession of a short-barrel rifle, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, on June 2, 2016, Cox, a convicted felon, was found in possession of a Norinco Model 99 12-gauge shotgun, a Savage Arms Stevens Model 940E 12-gauge shotgun with a shortened 13-inch barrel, and a Surplus Ammo and Arms Model LOW15 .223-caliber M4 assault rifle, with a shortened 10-inch barrel and a flash suppressor.

This case is the product of an investigation by the Federal Bureau of Investigation and the Vallejo Police Department. Assistant United States Attorney Ross K. Naughton is prosecuting the case.

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

This case is a product of the FBI Safe Streets Task Force initiative.

FRESNO, Calif. — A federal grand jury returned a 16-count indictment today charging six Mexican nationals with conspiracy, transferring false identification documents, possessing document-making implements, and fraud and misuse of alien registration receipt cards, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, between June 2015 and June 17, 2016, Angelica Moreno-Velasquez, 31; Maria Victoria Perez‑Vasquez, 30; Francisco Javier Hidalgo-Flores, 25; Lizet Amairani Ramirez-Zazueta, 26, and Veronica Rosales-Capitaine, 49, all of Fresno, and Fidel Vasquez-Velasquez, 22, of Madera, conspired to possess, transfer, and sell false U.S. social security cards and alien registration cards in Fresno and Madera County. The defendants are scheduled to be arraigned at 2:00 pm today before U.S. Magistrate Judge Stanley A. Boone.

According to court documents, Vasquez-Velasquez, Hidalgo-Flores and Rosales‑Capitaine manufactured fraudulent identification documents, including social security cards and alien registration receipt cards. Vasquez-Velasquez, Hidalgo-Flores and Perez-Vasquez took orders, photographs and biographical information from customers, and delivered the completed fraudulent identification documents to the customers, charging between $80 and $150 for one set. Moreno-Velasquez and Ramirez-Zazueta also delivered fraudulent identification documents to customers and other co-conspirators.

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

If convicted, the maximum statutory penalty for transferring false identification documents or possessing document-making implements is 15 years in prison and a $250,000 fine;  the maximum statutory penalty for fraud and misuse of alien registration receipt cards is 10 years in prison and a $250,000 fine, and the maximum statutory penalty for the conspiracy charge is five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Ryan McGowan, 34, of Elk Grove, was sentenced today by United States District Judge Troy L. Nunley to 18 months in prison and a $7,000 fine for dealing firearms without a license and for conspiracy to make a false statement on a firearms record, Acting United States Attorney Phillip A. Talbert announced.

Former Sacramento County sheriff’s deputy McGowan and his co-defendant Robert Snellings were convicted last year following a jury trial. Snellings, 64, of Rancho Murieta, a former federal firearms licensee, was sentenced last week to one year in prison.

Under state law, California has an approved roster of firearms that may be sold to the public. A federal firearms licensee is required to make sure any handgun sold is on the approved roster. There is an exemption, however, for peace officers to purchase certain firearms known as “off-roster” firearms. Peace officers who own off-roster firearms may sell them in a private sale, so long as it is brokered by a federal firearms licensee. They may not, however, use these private sales to conduct a business whose principal objective is livelihood and profit through the repetitive purchase and resale of firearms.

According to evidence produced at trial, McGowan used his position as a deputy sheriff to purchase off-roster guns at retail price and then because the firearms could not be purchased directly by the general public, resold them at an inflated price on the private market in California. From 2008 to 2011, McGowan purchased 41 handguns and sold 25 of them within a year after purchase. Thirty-three of the guns were purchased through Snellings Firearms, which was owned by co-defendant Snellings. Some of those weapons were then transferred back to Snellings personally, thereby allowing Snellings to own the weapons himself or sell them to the public.

Both defendants were found guilty of conspiracies to make false statements in federal firearms records. In order to circumvent the restrictions on purchasing off-roster firearms, they falsely stated on ATF forms that a police officer was the actual purchaser when the actual purchaser of the off roster handgun was intended to be a non-officer who was not permitted to buy the gun. Therefore, McGowan and other police officers were acting as a straw purchasers who then transferred the handguns to the real purchasers within a short period of time.

ATF Special Agent in Charge Jill A. Snyder stated: “Ryan McGowan used his position as a law enforcement officer to purchase firearms and sell them illegally. In doing so, he violated federal law and public trust.”

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the active involvement of the Sacramento Sheriff’s Office and the Sacramento Police Department. The Roseville Police Department and other law enforcement agencies assisted. Assistant United States Attorneys William S. Wong and Michael D. Anderson prosecuted the case.

SACRAMENTO, Calif. — Acting U.S. Attorney Phillip A. Talbert announced today that El Dorado County based Marshall Medical Center (MMC) will pay the United States and the State of California $5.5 million to settle allegations that MMC; Marshall Foundation for Community Health; El Dorado Hematology & Medical Oncology II, Inc.; Lin H. Soe, M.D.; and Tsuong Tsai, M.D., violated the federal False Claims Act and the State of California’s version of the False Claims Act. The federal lawsuit, filed by whistleblower Colleen Herren, contends that MMC and the other defendants defrauded Medicare, Tricare and Medicaid by a variety of billing improprieties. 

The settlement resolves the allegations that the defendants submitted false Medicare and Medi-Cal bills. The complaint alleged that the defendants performed chemotherapy infusions without having a physician present as required. One of the oncologists referred cancer patients from the oncology clinic to the hospital for blood transfusions and improperly billed Medicare for observation codes that require visits by the doctor in conjunction with the transfusions and no doctor visited. The clinic’s oncology nurses used single dose vials on two subsequent patients and billed Medicare and Medicaid for two dosages. In the settlement, the defendants do not admit liability for the alleged false conduct. 

Ms. Herren filed her lawsuit on behalf of the United States and State of California in January 2012, and she alleged that she was fired from her job as an oncology nurse in the clinic when she apprised management of the defendants’ billing practices. Ms. Herren's employment claims were not included in the settlement and have since been separately resolved and dismissed. She will receive a 26 percent share of the $5.5 million per the whistleblower provisions of the False Claims Act.

“Health care related fraud investigations are one of my District’s top priorities. My office works closely with our federal and state partners to ensure that patients receive proper medical care with drug regimens that are safe and properly administered, and to ensure that our publicly funded health care insurers reimburse practitioners only for approved services and medicines,” stated Acting U.S. Attorney Talbert.

This case was investigated by the United States Office of Inspector General of the U.S. Department of Health and Human Services, the Defense Criminal Investigative Service Office of Inspector General, and the California Department of Justice, Office of the Attorney General, Bureau of Medi-Cal Fraud and Elder Abuse. Assistant U.S. Attorneys Kelli L. Taylor and Kurt A. Didier handled the case.

SACRAMENTO, Calif. — United States District Judge John A. Mendez sentenced Jan Alan Shafer, 65, of Oroville, to 10 years in prison, to be followed by a lifetime term of supervised release, for attempted travel with intent to engage in sex with a minor, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, for more than two years, Shafer engaged in conversations of a sexual nature via email and an internet instant messenger service with an adult who was posing as a 10-year-old boy from Alabama. During their email exchanges, Shafer received images of child pornography, including sexually explicit images of prepubescent children. Shafer also expressed his intent to visit or move to Alabama to meet the 10-year-old boy and to engage in sexual conduct. On October 30, 2014, agents arrested Shafer at the Greyhound bus station in Oroville before he boarded a bus to Alabama.

On March 1, 2016, Shafer pleaded guilty to one count of attempted travel with intent to engage in sex with a minor.

This case was the product of an investigation by the Federal Bureau of Investigation and the Butte County Sheriff’s Office. Assistant United States Attorneys Brian A. Fogerty, André M. Espinosa, and 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. — The U.S. District Court for the Eastern District of California entered a consent decree of permanent injunction against Wa Heng Dou-Fu & Soy Sauce Corporation doing business as Wa Heng Dou-Fu & Soy Sauce International Enterprises (Wa Heng) and the firm’s co-owners, Peng Xiang “Martin” Lin and Yuexiao “Opal” Lin, to prevent the distribution of adulterated and misbranded soy products, the Department of Justice announced today.

The Department filed a complaint in the Eastern District of California on June 17, at the request of the U.S. Food and Drug Administration (FDA). The complaint alleged that the defendants violated the Food, Drug and Cosmetic Act by causing food that is held for sale after shipment of one or more of its components in interstate commerce to become adulterated and misbranded. According to the complaint, the defendants have an extensive history of operating their food manufacturing facility under insanitary conditions, failing to follow current good manufacturing practice requirements and misbranding their food products.

“The American public deserves to be assured that companies and individuals preparing and distributing food subject to the Food, Drug and Cosmetic Act are complying with federal law,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice’s Civil Division. “The Department of Justice will continue to work aggressively with the FDA to ensure a safe food supply.”

As detailed in the complaint, the company receives, prepares, processes, manufactures, packs, labels, holds and distributes soy products including fried tofu, firm tofu, seasoned tofu and soy drinks. The complaint alleged that Martin Lin’s responsibilities include the firm’s daily operations, raw material purchases, facility and equipment maintenance and production schedule and that Opal Lin’s responsibilities include training employees and overseeing employee performance.

In conjunction with the filing of the complaint, the defendants agreed to settle the case and to be bound by a permanent injunction that requires Wa Heng to cease all food preparation, manufacturing and distribution. If the defendants seek to resume preparing, manufacturing and distributing food, they must implement remedial measures set forth in the injunction, notify FDA of the measures taken, and receive written notification from FDA that they appear to be in compliance with the remedial requirements set forth in the injunction and the Food, Drug and Cosmetic Act.

According to the complaint, the defendants had a history of repeated violations. A 2015 inspection by FDA documented that the defendants failed to take reasonable precautions to ensure that production procedures do not contribute to contamination from any source. For example, as alleged in the complaint, FDA observed at least three employees spraying pressurized water from a water hose onto the production area floor, where FDA isolated Salmonella Havana, causing water to splash from the floor onto uncovered tofu and onto food contact surfaces, such as tofu presses and a filtration table. This was a repeat observation from the FDA’s 2012 inspection. In addition, FDA observed employees touching the bottoms of buckets and crates that had been on the floor and then touching tofu. The hand wash sink in the production room had no hot water because the valve had been turned off and the sink was inaccessible due to crates in front of it. This was also a repeat observation from the 2012 inspection.

According to the complaint, the most recent inspection also found that the defendants failed to maintain equipment and utensils in an acceptable fashion through appropriate cleaning and sanitizing. FDA observed spray hose nozzles, air valves, water valves and light switches that contained heavy residue, as well as a tofu cutting knife that was placed on top of a tofu press with greenish-brown buildup and then used to slice tofu.

Further, the complaint alleged that during the 2015 inspection, FDA conducted environmental sampling of the facility and five subsamples tested positive for pathogenic Salmonella Havana. According to the complaint, the positive samples were taken from, among other places, a floor drain near a cooking tank, a caster wheel on a cart carrying tofu and the floor between the packing and processing rooms. As noted in the complaint, FDA isolated a nearly identical strain of Salmonella Havana during its 2011 and 2012 inspections.

During the 2015 inspection, FDA also collected samples of the defendants’ product labeling. The complaint alleges that the defendants’ products are misbranded because, among other things, some of the firm’s soy products fail to include a label containing an accurate statement of the quantity of the contents in terms of weight, measure, or numerical count.

 “Firms and individuals that violate federal food safety regulations pose a danger to public health,” said Acting U.S. Attorney Phillip A. Talbert of the Eastern District of California. “The Department will not hesitate to hold companies and individuals accountable in order to protect the American people from adulterated food.”

The government is represented by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney Colleen Kennedy of the Eastern District of California and Associate Chief Counsel for Enforcement Charlotte Hinkle of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.

FRESNO, Calif. — Natalie Middleton, 30, of Clovis, pleaded guilty today to laundering proceeds from the sale of synthetic drugs, commonly known on the street as “spice,” Acting United States Attorney Phillip A. Talbert announced.

“Spice” refers to a smokable organic plant leaf that is laced with a synthetic cannabinoid, which is often a controlled substance or a controlled substance analogue. Public health and law enforcement agencies have seen the emergence of synthetic drug use. State and local public health departments note that synthetic cannabinoids cause serious adverse health effects, including agitation, anxiety, nausea, vomiting, tachycardia, elevated blood pressure, tremor, seizures, hallucinations, paranoid behavior, and even death.

According to court documents, Middleton purchased a Lake Tahoe time share with proceeds she obtained from the sales of smokable synthetic cannabinoids. According to her plea agreement, from January through March 2013, Middleton was employed as a national sales representative for ZenBio LLC (ZenBio). ZenBio was a “spice” manufacturing and distribution business that started in Pensacola, Florida in November 2012. It continued the operations of another “spice” company known as Zencense IncenseWorks LLC that processed the drug in warehouses in Stockton and Millbrae. The drugs were sold under the brand names “Bizarro,” “Orgazmo,” “Headhunter,” “Defcon,” “Neutronium,” “Sonic Zero,” “Sonic Boom,” “Sonic Blast,” “Shockwave,” “Hampster,” and “Posh.” ZenBio distributed these drugs during its approximate five-month life span. ZenBio generated in excess of $33 million from the sale of at least 24 tons of synthetic drugs. During the investigation of this case, law enforcement officers seized over $6 million in cash and assets derived from drug proceeds.

Court documents also reveal that, prior to her position with ZenBio, Middleton worked as a manager at the Stuffed Pipe, a chain of smoke shops in Fresno, Visalia, and Bakersfield. The Stuffed Pipe previously sold ZenBio and Zencense “spice” products.

Middleton is scheduled for sentencing on October 11, 2016. She faces a maximum statutory penalty of 10 years in prison and a $250,000 fine, or twice the gross gain from the crime. 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.

Last month, a co-conspirator, Timothy New, 33, of Pensacola, Florida pleaded guilty to the fraudulent interstate shipments of misbranded drugs. Co-defendants, Douglas Jason Way, 41, of Evanston, Illinois, and Timothy Ortiz, aka Michael Fitton, 45, of Waukegan, Illinois, have pleaded not guilty to various drug charges and are scheduled for a status conference on September 12, 2016. They face a maximum penalty of 20 years in prison and a fine of $10 million. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Drug Enforcement Administration (DEA), the Internal Revenue Service-Criminal Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Fresno County Sheriff’s Office, with assistance from the Food and Drug Administration (FDA). The OCDETF Program was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General's drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. This OCDETF investigation was also part of a nationwide law enforcement effort coordinated by the DEA’s Special Operations Division. Assistant United States Attorney Karen A. Escobar is prosecuting the case.

SACRAMENTO, Calif. — Abdul Mannan, 33, of Sacramento, was sentenced today to three years and three months in prison for bank fraud and aggravated identity theft, Acting U.S. Attorney Phillip Talbert announced. In addition, U.S. District Judge Garland E. Burrell Jr. ordered Mannan to pay $76,193 in restitution.

According to court documents, between March 5, 2014, and November 7, 2014, Mannan participated in a scheme to obtain cash, goods, and services from banks and from Sacramento Area stores. On July 1, 2015, federal agents executed a search warrant at Mannan's residence and found personal and financial information for over 25 different victims and more than 25 different credit card accounts. On March 11, 2016, Mannan pleaded guilty to the charges.

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 customers’ mail and personal information from theft.”

“Identity theft schemes result in billions of dollars in losses every year in this country and cause incalculable heartache and financial harm to law-abiding consumers,” said Ryan L. Spradlin, the special agent in charge who oversees HSI’s enforcement activities throughout northern California. “We owe it to the victims of these schemes to pursue such cases aggressively, making it clear that those who brazenly enrich themselves through fraud and identity theft, as this defendant did, will be held accountable for their crimes.”

This case was the product of an investigation by the United States Postal Inspection Service and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), with the assistance of the Sacramento Police Department. Assistant United States Attorney Michelle Rodriguez prosecuted the case.

SACRAMENTO, Calif. — Harminder Phagura, 36, of Yuba City, pleaded guilty today to one count of federal programs bribery in connection with a drug trafficking scheme, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, while he was employed as a Yuba City police officer, Harminder Phagura exchanged sensitive information gained from his official position and exchanged it for money. Co‑defendant Gursharan Phagura transmitted this police-only information to a government source, who was posing as a cocaine trafficker

During the investigation, on July 29, 2014, federal agents observed Gursharan Phagura meet with Harminder Phagura in a Yuba City Police vehicle. At the same time, Gursharan Phagura and the government source were exchanging text messages regarding the state of police presence in the area. Agents then caused an alert to be transmitted on the Yuba City Police Department’s dispatch system. Within a few minutes, the government source received text messages indicating, in coded language, that law enforcement was in the area.

Over the course of several undercover operations, the government source paid a total of $6,000 for the information. The Yuba City Police Department receives grant funds from a Federal program.

“It’s profoundly troubling when sworn personnel use their training and expertise to flout the law, rather than uphold it,” said Ryan L. Spradlin, the special agent in charge who oversees HSI’s enforcement activities throughout northern California. “As the charges in this case make clear, no one is above the law, least of all law enforcement. This plea is gratifying for the HSI special agents and other investigators who worked tirelessly to see justice served.”

Co-defendant Gursharan Phagura is charged with possessing, with intent to distribute, cocaine. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt. Harminder Phagura and Gursharan Phagura were arrested on April 15, 2015. Harminder Phagura is out of custody on a $100,000 bond. Gursharan Phagura is in custody.

This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) with assistance from the Federal Bureau of Investigation and the Yuba City Police Department. Assistant United States Attorney Paul Hemesath is prosecuting the case.

Harminder Phagura is scheduled to be sentenced on October 14, 2016. He faces a maximum statutory penalty of 10 years in prison and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — A federal grand jury has returned a 16-count indictment against John Stuart Hill, 32, of Granite Bay, charging him with wire fraud and mail fraud, Acting United States Attorney Phillip A. Talbert announced.

Hill was indicted on April 28, 2016, and the indictment had been sealed until today, when he was arraigned by United States Magistrate Judge Edmund F. Brennan. The defendant entered a not guilty plea.

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 property in the Sacramento area. In reality, the indictment alleges that 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.

Hill was ordered detained pending trial. His next court appearance is scheduled for August 18, 2016, before United States District Judge Morrison C. England Jr.

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

If convicted, Hill 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.

FRESNO, Calif. — Patrick Mara, 36, of Bakersfield, a former detective with the Bakersfield Police Department (BPD), pleaded guilty today to conspiracy to distribute and possess with the intent to distribute methamphetamine, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, between June 14, 2012, and October 2013, Mara was assigned to the Southern Tri-County Task Force of the Central Valley High Intensity Drug Trafficking Area (HIDTA). He abused his position of trust and authority by conspiring with his partner, Damacio Diaz, to seize narcotics in the course of their official duties and intentionally fail to submit the seized narcotics to the BPD evidence room. Instead, on multiple occasions, Mara and Diaz retained possession of seized narcotics for their own unlawful personal gain, purpose and sale. Mara admits that he and Diaz unlawfully seized and maintained possession of approximately 20 pounds of methamphetamine.

According to the plea agreement, Mara will forfeit $80,000 obtained from this criminal conduct. On May 31, 2016, Damacio Diaz pleaded guilty to related charges.

“Mara took advantage of the trust placed in law enforcement officers for his personal gain. In so doing, he undermined the public trust and he betrayed the honest, hard-working officers who risk their lives daily to protect our community. Moreover, he put those officers — and the public — in danger. Misconduct by police officers will not be tolerated, which has been the message expressed by BPD Chief Greg Williamson from the inception of this investigation,” Acting U.S. Attorney Talbert said. “I would like to personally thank Chief Williamson and his Department for their invaluable assistance with this investigation. Chief Williamson devoted resources to work hand-in-hand with the FBI, the DEA and our Office throughout this investigation in a sincere effort to root out corruption.”

Acting U.S. Attorney Talbert went on to say: “While our investigation is continuing and it is premature to say more at this time, I can say that the allegation recently made to the media that there is widespread corruption within BPD is one that our investigation has not substantiated.”

“Patrick Mara took an oath to serve and protect the public, yet he chose to participate in criminal conduct to serve his own interests for profit. This type of behavior from a law enforcement officer is unacceptable. Those who commit such crimes are not worthy to wear the badge and serve their communities,” stated DEA Special Agent in Charge John J. Martin. “DEA will continue to work with our law enforcement counterparts to weed out officers who abuse their position.”

Assistant Bakersfield Police Chief Lyle Martin stated: “The Bakersfield Police Department is dedicated to building and maintaining community trust by holding its employees accountable for their actions.  We will continue to work with our local, state and federal partners through the conclusion of this investigation.”

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

Mara faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — William Louis Filter, 46, of Live Oak, was sentenced today to three years of probation for unlawful baiting and the unlawful taking of a migratory game bird by aid of bait, Acting United States Attorney Phillip A. Talbert announced.

On May 4, 2016, a jury found Filter guilty after a two-day trial. The evidence at trial showed that Filter baited a field on his family’s hunting ranch in the Sutter Buttes by covering it with birdseed in order to attract mourning doves. On September 1, 2015, which is opening day of mourning dove season, Filter returned to the baited field with three others. Altogether, they shot and killed 34 mourning doves in less than three hours.

At the sentencing hearing, it was revealed that Filter had a history of fish and game violations, causing his hunting privileges to be revoked between 2009 and 2012.

During probation, Filter is required to obey the following special conditions: serve a three-year ban from hunting; surrender his hunting license to the U.S. Attorney’s Office; perform 120 hours of community service at a nonprofit organization that benefits animal welfare, nature conservation, or the environment; and, pay a $5,000 fine within six months.

This case was the product of an investigation by the United States Fish and Wildlife Service and the California Department of Fish and Wildlife. Special Assistant United States Attorneys Benjamin Nelson and Elliot Wong prosecuted the case.

SACRAMENTO, Calif. — After a five-day trial, a federal jury found Albert Lee Mitchell, 69, of Sacramento, guilty of one count of receipt of child pornography, Acting United States Attorney Phillip A. Talbert announced.

On November 15, 2012, Mitchell was indicted on a single count of receipt of child pornography. According to the indictment, between April 16, 2012, and November 5, 2012, Mitchell received images of child pornography via the internet.

According to evidence produced at trial, on November 5, 2012, a search warrant was executed at Mitchell’s residence after law enforcement identified an IP address located there offering files of child pornography. At the time of the search, dozens of images of suspected child pornography were set to be downloaded on a file-sharing network on a computer located at the search site. Mitchell admitted to ownership of the computer and to being its sole user. A forensic review of the computer and other devices found in Mitchell’s home office revealed a collection of thousands of depictions of child pornography.

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorneys Audrey B. Hemesath and Josh F. Sigal are prosecuting the case.

After the jury announced its verdict, Mitchell was taken into custody as a danger to the community. Mitchell is scheduled to be sentenced on September 28, 2016, by United States District Judge Kimberly J. Mueller. Mitchell faces a maximum statutory sentence of 20 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

SACRAMENTO, Calif. — Joseph Aaron McClendon, 39, of Stockton, was sentenced today by United States District Judge Troy L. Nunley to two and a half years in prison, to be followed by eight years of supervised release, for possession of child pornography, Acting United States Attorney Phillip A. Talbert announced. On release, McClendon will be required to register as a sex offender.

According to court documents, between March and November 2012, federal agents detected McClendon’s computer offering images of child pornography through a file-sharing peer-to-peer network. Agents executed a federal search warrant and seized McClendon’s computer. A subsequent forensic review found approximately 700 images and 95 videos of child pornography that had been downloaded by McClendon. These images and videos included depictions of prepubescent children, as well as acts of sadistic and masochistic conduct involving minors.

“Downloading sexually explicit images and videos of young children not only creates lifelong scars for victims, it also enables perpetrators around the globe to continuously exploit those same innocent victims,” said Ryan L. Spradlin, special agent in charge for HSI San Francisco. “HSI will continue to work tirelessly with our law enforcement partners to target criminals who prey on the most vulnerable members of society.”

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Amy Schuller Hitchcock 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 four-count indictment today against Michael Tamblin, 51, of Manteca, charging him with attempted sexual exploitation of a minor, Acting U.S. Attorney Phillip A. Talbert announced.

According to the indictment, in September and October of 2015, Tamblin surreptitiously filmed a child on numerous occasions using a hidden camera.

According to court documents, Tamblin was a technician at the Lawrence Livermore National Laboratory (LLNL), which is a secured federal laboratory owned by the United States Department of Energy. All internet searches on the LLNL network are recorded and periodically audited. A routine review of internet searches on Tamblin’s computer revealed potentially inappropriate activity. Further investigation led law enforcement officers to obtain a search warrant for Tamblin’s residence. On February 19, 2016, Tamblin was arrested and has remained in custody since that date.

This case is the product of an investigation by the Federal Bureau of Investigation and the Department of Energy, Office of Inspector General. Assistant United States Attorney Rosanne Rust is prosecuting the case.

If convicted, Tamblin faces a mandatory minimum sentence of 15 years in prison and a maximum statutory penalty of 30 years in prison and a $250,000 fine per count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

SACRAMENTO, Calif. — Darrell Patrick Hinz, 51, of Cameron Park, was sentenced today by United States District Judge Troy L. Nunley to eight years and one month in prison and ordered to pay $18,830,000 in restitution for defrauding the United Auburn Indian Community (UAIC), conspiring to launder monetary instruments, and filing false tax returns, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, between October 2006 and December 2007, Hinz, together with Gregory Scott Baker, of Newcastle, and Bart Wayne Volen, of San Diego, engaged in a scheme to defraud the UAIC of over $18 million.

“The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Darrell Patrick Hinz and his co-defendants created a scheme to defraud the UAIC in over $18 million in proceeds and purchased numerous high valued assets for himself and other co-defendants totaling over $1.4 million. Hinz also failed to report his ill-gotten gains on his federal tax returns. This sentence should serve as a deterrent to those who might contemplate similar fraudulent actions.”

According to court documents, in October 2006, the UAIC hired Volen, a developer, to finish construction on a school, a community center, and administrative offices on UAIC‑owned property on Indian Hills Road in Auburn. Baker was the UAIC tribal administrator whose duties included overseeing the Indian Hills office project. In this position of trust, he was subordinate only to the UAIC tribal council. Hinz was a contract employee hired by the UAIC to manage the construction at the Indian Hills office project site. Both Baker and Hinz were required to approve all invoices before the UAIC tribal council would sign checks to pay for completed work.

In carrying out the scheme, Volen submitted false and inflated invoices to the UAIC, and Hinz and Baker approved the fraudulent invoices based on a kickback agreement between the three men. Both Hinz and Baker engaged in conduct to ensure that the tribal council would pay for the inflated and fraudulent invoices submitted by Volen. They were later paid by Volen for their participation in the scheme.

According to court documents, Hinz, Baker, and Volen called themselves the “A-Team.” As a member of the A-Team, Hinz surreptitiously funneled over $1.4 million in fraud proceeds to Baker for his assistance in the scheme. Hinz also purchased a number of things for Baker, including personal property (such as a $70,000 BMW and a mobile home), seven investment homes, a vacation condominium in South Lake Tahoe, and a $54,000 pool at Baker’s primary residence. All of these transactions were conducted for the purpose of concealing the proceeds from the UAIC fraud.

With regard to the tax offense, Hinz failed to report the income he derived from the scheme. As a result, the United States suffered a tax loss of $830,000.

When imposing the sentence in this case, Judge Nunley stated that Hinz was part of “a massive fraud” that was committed by people that the UAIC trusted. The judge noted that the UAIC had taken in Hinz “as a member of their family” and that, through his actions and those of his co-conspirators, “the UAIC was taken advantage of.”

This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Michael M. Beckwith, John K. Vincent, and Kevin C. Khasigian are prosecuting the case.

Baker and Volen previously pleaded guilty to similar charges in this case. On May 26, 2016, Baker was sentenced to more than five years in prison and ordered to pay restitution. Volen is scheduled to be sentenced on August 4, 2016. Chris W. Eatough previously pleaded guilty to a felony related to this case on June 20, 2013 (case number 2:13-cr-214 TLN). Eatough is scheduled to be sentenced on July 28, 2016.

SACRAMENTO, Calif. — Bryan Schweder, 53, of Hayfork, was sentenced today by U.S. District Judge Kimberly J. Mueller to 13 and a half years in prison for conspiracy to manufacture marijuana and for being a felon in possession of firearm, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, federal search warrants were executed on two properties in Trinity County owned by Schweder. At his residence on Highway 3 in Hayfork, agents located Schweder and 10 of his co-defendants, as well as 347 marijuana plants, a large marijuana processing area with approximately 300 pounds of drying marijuana plants, approximately 110 pounds of processed marijuana, and eight firearms, including a loaded 9 mm Uzi semiautomatic assault rifle and an AK-47. At his Dirt Road property, agents located 146 marijuana plants and 10 pounds of processed marijuana.

According to court documents, Schweder was the manager of the growing operation. He has a criminal history that includes two felony convictions of possession of marijuana for sale (1999 and 2005), two felony convictions for being a felon in possession of firearms (1997 and 1999), and a domestic violence conviction (1995).

The following co-defendants pleaded guilty and have already been sentenced in this case or are pending sentencing:

On March 16, 2016, Effren Rodriguez was sentenced to 10 years in prison

On June 8, 2016, Brian Pickard was sentenced to seven years and three months in prison;

On March 30, 2016, Juan Madrigal Olivera was sentenced to two years and three months in prison;

On December 14, 2015, Manuel Madrigal Olivera was sentenced to five years in prison;

On January 28, 2016, Fred Holmes was sentenced to one year in prison;

On September 16, 2015, Paul Rockwell was sentenced to four years in prison;

On January 13, 2016, Rafael Camacho-Reyes was sentenced to six years in prison;

On March 19, 2014, Homero Lopez Barron was sentenced to three years in prison;

On July 2, 2014, Victorino Betancourt-Meraz was sentenced to three years in prison;

On June 4, 2012, Oseas Carnenas Tolentino was sentenced to three years in prison;

On March 19, 2014, Fernando Reyes Mojica was sentenced to three years in prison;

On June 4, 2014, Juan Cisneros Vargas was sentenced to three years in prison;

On March 19, 2014, Osiel Valencia Alvarez was sentenced to 2.5 years in prison;

On November 13, 2013, Filiberto Espinoza-Tapia was sentenced to 2.5 years in prison;

Leonardo Tapia, is scheduled to be sentenced on July 20, 2016.

On April 17, 2015, Judge Mueller denied Pickard’s motion to dismiss the indictment and upheld the listing of marijuana as a Schedule I Controlled Substance after a five-day evidentiary hearing. In a 38-page written opinion outlining the evidence and the position of the parties, Judge Mueller joined the numerous other judges who have concluded that a rational basis exists for the inclusion of marijuana as a Schedule I Controlled Substance.

This case is the product of an investigation by the U.S. Forest Service, the Trinity County Sheriff’s Office, and the California Department of Justice’s North State Marijuana Investigative Team (NSMIT). Assistant United States Attorneys Samuel Wong, Richard Bender, and Gregory Broderick are prosecuting the case.

FRESNO, Calif. — Luis Fernando De La Rocha-Carlon, 26, of Stockton, pleaded guilty today to conspiring to distribute and possess with the intent to distribute methamphetamine, Acting United States Attorney Phillip A. Talbert announced. 

According to court documents, on October 9, 2014, De La Rocha-Carlon negotiated the sale of approximately seven kilograms of crystal methamphetamine for $84,000 and came to Fresno with his brother to meet with the buyer. When CHP officers tried to stop De La Rocha-Carlon, he fled and threw the seven kilograms out of the window of his vehicle.  All the crystal methamphetamine was recovered. On February 16, his brother and co-defendant Mauricio De La Rocha pleaded guilty to conspiring to distribute methamphetamine and was sentenced to over three years in prison on May 2, 2016.

This case is the product of an investigation by the Drug Enforcement Administration Task Force and the California Highway Patrol. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.

De La Rocha-Carlon is scheduled to be sentenced by Judge Dale A. Drozd on August 29, 2016. De La Rocha-Carlon 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.

FRESNO, Calif. — Walter Watts Jr., 47, of Madera, was sentenced Monday by United States District Judge Anthony W. Ishii to 2 ½ years in prison for being a felon in possession of a firearm, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, on November 29, 2012, law enforcement officers searched Watt’s home and found a Tactical Machine semiautomatic rifle, a Heckler and Koch shotgun, and a .22-caliber firearm with an attached laser. Watts was previously convicted of felony tax evasion in April 2011.

This case was the product of an investigation by the Drug Enforcement Administration and the Madera Narcotics Enforcement Team. Assistant United States Attorney Kevin Rooney prosecuted the case.

Watts was ordered to surrender on August 22, 2016, to begin his prison term.

FRESNO, Calif. — Casey Nocket, 23, of San Diego, pleaded guilty today to seven misdemeanor counts of damaging government property. U.S. Magistrate Judge Sheila K. Oberto sentenced Nocket two years’ probation and 200 hours of community service, Acting United States Attorney Phillip A. Talbert and National Park Service Chief of Law Enforcement Charles Cuvelier announced.

In addition, Judge Oberto ordered Nocket banned from lands administered by the National Park Service, the U.S. Forest Service, the Bureau of Land Management, and the Army Corps of Engineers during the period of probation. A hearing to determine the amount of restitution Nocket is required to pay will be held at a later date.

According to court documents, over a 26-day period, Nocket damaged rock formations within seven national parks by drawing or painting on them using acrylic paints and markers. She posted numerous pictures of the drawings on her social media accounts. The parks are in four federal districts: the Eastern District of California, the District of Oregon, the District of Utah, and the District of Colorado.

Acting U.S. Attorney Talbert stated, “The defendant’s defacement of multiple rock formations showed a lack of respect for the law and our shared national treasures. The National Park Service has worked hard to restore the rock formations to their natural state, completing clean-up efforts in five of the seven parks. They expect to complete cleanup efforts at Death Valley in the near future and at Crater Lake as weather permits.”

“This case illustrates the important role that the public can play in identifying and sharing evidence of illegal behavior in parks,” said Charles Cuvelier, chief of law enforcement for the National Park Service. “It is clear that the public cares deeply for the special places that the National Park Service represents, and the resolution of this case sends a message to those who would consider such inappropriate behavior going forward.”

The damage took place as follows:

• September 23, 2014, Death Valley National Park in the Eastern District of California at the summit of Telescope Peak.

• September 12, 2014, Rocky Mountain National Park in the District of Colorado

• September 13, 2014, Colorado National Monument in the District of Colorado on the Monument Canyon Trail.

• September 15, 2014, Canyonlands National Park in the District of Utah on the Neck Spring Trail.

• September 17, 2014, Zion National Park in the District of Utah.

• October 2, 2014, Yosemite National Park in the Eastern District of California at the beginning of the John Muir Trail.

• October 7, 2014, Crater Lake National Park in the District of Oregon.

  This case was the product of an investigation by the National Park Service. Assistant United States Attorney Laurel J. Montoya prosecuted the case.

FRESNO, Calif. — Bryson LaPaul Blair, 30, of Bakersfield, was sentenced today by United States District Judge Lawrence J. O'Neill to three years and 10 months in prison for being a felon in possession of a firearm and ammunition, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, on April 21, 2015, while investigating a shooting near an elementary school, Bakersfield police officers located a bullet-ridden vehicle at Blair’s residence that matched the description of one of the vehicles involved in the shooting. During the subsequent execution of a search warrant, officers found a stolen, loaded Russian assault weapon under Blair’s bed and 145 rounds of ammunition. Blair was previously convicted in Kern County of second degree robbery and was prohibited from possessing firearms and ammunition.

This case was the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Bakersfield Police Department. Assistant United States Attorney Karen A. Escobar prosecuted the case.

FRESNO, Calif. — On Wednesday, after a two-day trial, a jury found Humberto Bucio Delgado, 41, of Mexico, guilty of conspiracy to distribute methamphetamine and possession with the intent to distribute methamphetamine, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, on September 30, 2014, Delgado was arrested at a methamphetamine conversion lab inside a Fresno residence. Agents recovered over 60 pounds of methamphetamine from the house as well as materials used in the manufacturing and distribution of methamphetamine.

Sentencing is set for August 29, 2016, before Chief United States District Judge Lawrence J. O’Neill. Delgado faces a sentence of 10 years to life in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the Fresno Methamphetamine Task Force, the California Department of Justice, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Kathleen A. Servatius and Daniel J. Griffin are prosecuting the case.

SACRAMENTO, Calif. — Nicholas Michael Teausant, 22, of Acampo, was sentenced today by U.S. District Judge John A. Mendez to 12 years in prison, to be followed by 25 years of supervised release, for attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, announced Assistant Attorney General for National Security John P. Carlin and Acting U.S. Attorney Phillip A. Talbert.

According to court documents, on March 17, 2014, Teausant was arrested near the Canadian border en route to Canada with the intent of continuing to travel to Syria to join ISIL. On March 26, 2014, Teausant was indicted on one count of attempting to provide material support or resources to a terrorist organization. He pleaded guilty on December 1, 2015, to the single count in the indictment without a plea agreement.

In sentencing, Judge Mendez stated: “Terrorism has to become a zero-tolerance crime. There is no margin for error. It is the court’s responsibility to fashion a sentence to reduce any risk you might pose in the future.”

“With this sentence, Nicholas Michael Teausant will be held accountable for attempting to travel overseas to join ISIL and to provide material support to the designated terrorist organization,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who attempt to provide material support to designated foreign terrorist organizations.”

Acting U.S. Attorney Talbert stated: “Mr. Teausant was fixated on violence as documented by his social media posts, his pre-arrest statements, and the nature of the group he attempted to join. His conduct was misguided and unacceptable. We appreciate the court’s thoughtful consideration of this case and its recognition of the seriousness of this offense. With the assistance of our investigative partners, we will continue to vigorously prosecute those who seek to provide material support to terrorist organizations.”

“The FBI actively investigates individuals intent on joining terrorist organizations or otherwise aiding violent extremist organizations with their plots to harm U.S. citizens. Violent extremists of all kinds—foreign and domestic—actively recruit disillusioned youth who can be radicalized and motivated to harm others,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento field office. “Everyone should increase their awareness of this issue and consider how they can lead from where they stand by reaching out to individuals before their fascination evolves into recruitment by a violent extremist group. ‘Don’t be a Puppet: Pull Back the Curtain on Violent Extremism,’ for example, is an FBI-produced educational resource designed to help youth navigate the host of propaganda they may be exposed to online and aid misguided peers long before misinformation leads them to commit an unlawful act.”

This case was the product of an investigation by the Federal Bureau of Investigation, the Modesto Police Department, and the San Joaquin County Sheriff’s Office, who are members of the Modesto/Stockton Joint Terrorism Task Force, with significant assistance from U.S. Customs and Border Protection. Assistant United States Attorneys Jean M. Hobler and Jason Hitt and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section prosecuted the case.

Nicholas Michael Teausant, 22, of Acampo, California, was sentenced today by U.S. District Judge John A. Mendez of the Eastern District of California to 12 years in prison for attempting to provide material support to Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, announced Assistant Attorney General for National Security John P. Carlin and Acting U.S. Attorney Phillip A. Talbert of the Eastern District of California.

According to court documents, on March 17, 2014, Teausant was arrested traveling to Canada, near the border, with the intent of continuing to travel to Syria to join ISIL.  On March 26, 2014, Teausant was indicted on one count of attempting to provide material support or resources to a terrorist organization.  He pleaded guilty to the single count in the indictment without a plea agreement.  In addition to the prison term, Judge Mendez also sentenced Teausant to 25 years of supervised release.

“With this sentence, Nicholas Michael Teausant will be held accountable for attempting to travel overseas to join ISIL and to provide material support to the designated terrorist organization,” said Assistant Attorney General Carlin.  “The National Security Division’s highest priority is countering terrorist threats, and we will continue to work to stem the flow of foreign fighters abroad and bring to justice those who attempt to provide material support to designated foreign terrorist organizations.”

“Mr. Teausant was fixated on violence as documented by his social media posts, his pre-arrest statements, and the nature of the group he attempted to join,” said Acting U.S. Attorney Talbert.  “His conduct was misguided and unacceptable.  We appreciate the court’s thoughtful consideration of this case and its recognition of the seriousness of the offense.  With the assistance of our investigative partners, we will continue to vigorously prosecute those who seek to provide material support to terrorist organizations.”

This case was the result of an investigation by the FBI; the Modesto, California, Police Department; and the San Joaquin, California, Sheriff’s Office, who are members of the Modesto/Stockton Joint Terrorism Task Force, with significant assistance from U.S. Customs and Border Protection.  The case is being prosecuted by Assistant U.S. Attorneys Jean M. Hobler and Jason Hitt of the Eastern District of California and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section.

SACRAMENTO, Calif. — A federal grand jury returned a nine-count indictment Thursday against Vivian Wang, 53, of Lilburn, Georgia, and Frank Luo, 48, of Las Vegas, Nevada, charging them both with wire fraud and charging Wang with aggravated identity theft, Acting United States Attorney Phillip A. Talbert announced. The defendants were arrested today at their residences in Georgia and Nevada.

According to court documents, between August 5, 2008 and August 2014, Wang and Luo participated in a scheme to defraud casinos and credit card companies across the country. The scheme involved using false identities in the names and Social Security numbers of migrant workers to apply for casino credit called “markers” and to open credit card accounts. A marker is a cash advance provided by a casino to a patron, and it is often secured by a check from the patron’s bank account. The defendants initially timely repaid several markers at different casinos and several credit cards in order to give the impression of creditworthiness to future casinos and credit card companies. Moreover, the defendants coordinated their gambling activity in order to give the appearance of losing money (and thereby encouraging the casinos to issue future markers) when in fact one schemer would “lose” money while another would gain the same. In other instances, one schemer would surreptitiously deliver the issued gambling chips to another in order to give the appearance of having spent them.

According to the indictment, the defendants expended the fraudulently obtained credit on jewelry, precious metals, home appliances, international flights, luxury goods and clothing. The defendants closed and depleted the bank accounts provided to the casinos in their marker applications to prevent the casinos from recovering the money secured by the checks they had written against those accounts, and they did not pay back the credit card balances. The combined fraud led to over $1.2 million in losses to casinos and credit card companies.

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

If convicted, Wang and Luo face a maximum statutory penalty of 20 years in prison and a $250,000 fine as to each count of wire fraud. If convicted of aggravated identity theft, Wang faces a mandatory minimum sentence of 24 months in prison consecutive to any other sentence imposed. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Daniel Allen Coats, 34, of Turlock, pleaded guilty today to one count of conspiracy to defraud the United States by filing false claims for federal tax refunds, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, beginning in 2011, Coats and three fellow inmates in the California Correctional Center in Susanville obtained the personal identification information of other inmates and provided it to co-defendants located outside the prison. The co-defendants then used that information to prepare and file false income tax returns with the Internal Revenue Service, claiming refunds to which the inmates were not entitled. Coats also filed three false tax returns in his own name.

According to court documents, the fraudulently obtained refund checks were deposited into various bank accounts and onto prepaid debit cards that the defendants controlled. The refunds were used for personal expenditures, added to the inmates’ commissary accounts, and used to purchase prepaid debit cards. In all, the conspiracy resulted in at least 247 false claims for income tax returns in tax years 2008 through 2011. Although the IRS stopped some of these refunds, approximately 138 fraudulent refunds totaling approximately $219,984 were issued.

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

Coats is scheduled to be sentenced by United States District Judge Garland E. Burrell Jr. on August 19, 2016. Coats 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.

On July 8, 2015, Edwin Ludwig IV was sentenced to seven years in prison for his role in the scheme. The charges against the remaining five co-defendants are pending. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned a 20-count indictment today against Mark Merrill Reynolds, 60, of Fresno, charging him with embezzlement, mail fraud, and money laundering, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, Reynolds was the president and sole shareholder of Ben-E-Lect and Ben-E-Lect of Visalia. These companies operated in Fresno and Tulare Counties. Ben-E-Lect processed health care claims on behalf of its clients, which were small- to medium-sized businesses that purchased high deductible, fully insured group medical plans from independent insurance carriers and then self-insured beneficiaries for amounts up to the amount of the high deductible. Ben-E-Lect processed the claims using funds that its clients paid into an account known as the Ben-E-Lect Employer Elect account. Ben-E-Lect was required to hold these funds in a fiduciary capacity and to withdraw clients’ funds only for specific purposes, none of which included Ben-E-Lect’s own operational expenses or Reynold’s personal gain.

According to the indictment, Reynolds embezzled funds from the Ben-E-Lect Employer Elect account over a five-year period. He allegedly used the embezzled funds for Ben-E-Lect’s business operating expenses, personal mortgage payments, personal vehicle loan payments, personal credit card payments, the purchase of a 30 percent interest in a payroll company, deposits into a personal investment account, and cash withdrawals. All the funds diverted from the Ben-E-Lect Employer Elect account were allegedly first moved into different accounts to conceal their source before being used and spent. The indictment alleges that Reynolds embezzled approximately $6,089,500 from the Ben-E-Lect Employer Elect account, but reimbursed that account approximately $1,613,500, netting a loss of approximately $4,476,000. During the time period alleged in the indictment, Ben-E-Lect serviced over 3,200 clients across 22 states.

This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Insurance. Assistant United States Attorneys Mark J. McKeon and Patrick Delahunty are prosecuting the case.

If convicted of embezzlement, Reynolds faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted of mail fraud, Reynolds faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. If convicted of money laundering, Reynolds faces a maximum statutory penalty of 20 years in prison and a fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater. 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. — Clint Gregory, 53, of Sacramento, was sentenced today by United States District Judge Morrison C. England Jr. to six and a half years in prison for a mail fraud scheme involving bid rigging in connection with contracts issued by the California Department of Transportation (Caltrans), Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Gregory worked for Caltrans in Stockton as a Senior Transportation Engineer Supervisor. Over a five-year period, Gregory received cash, a Persian rug, a cellphone, and other gifts in exchange for awarding Caltrans contracts to a primary corporate contractor. Gregory and others also arranged for third-party companies to submit straw bids for contracts for which the primary contractor was also competing, permitting Gregory to award the contracts to either a straw bidder or the primary contractor and create the illusion of true competition. The straw companies, who performed no work, were paid a commission for their assistance, and this arrangement was not disclosed to Caltrans. As a result of the fraud, Caltrans incurred a loss of more than $1.2 million.

According to Gregory’s guilty plea, he used his authority at Caltrans to approve fraudulent invoices submitted by the primary contractor and others. As a result, the primary contractor and the straw-bidder companies received payment for work that was never performed. He also requested that the primary contractor provide him with a fictitious invoice to conceal an unlawful purchase he made for parts for his personal airplane.

In imposing sentence, the Court found that Gregory had obstructed justice by making false statements to law enforcement about specific purported bribe payments made to accounts he had set up in the name of shell companies. A restitution hearing has been scheduled for July 21, 2016.

This case was the product of an investigation by the FBI and the San Joaquin County District Attorney’s Office. Caltrans assisted with the investigation. Assistant United States Attorneys Philip A. Ferrari, Michele M. Beckwith, and André M. Espinosa prosecuted the case.

FRESNO, Calif. — Damacio Diaz, 44, of McFarland, formerly a detective with the Bakersfield Police Department, pleaded guilty today to bribery, possession and attempted possession with the intent to distribute methamphetamine, and making and subscribing a false income tax return, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, between April 2012 and February 2015, while employed as a police officer with the Bakersfield Police Department (BPD), Diaz handled a criminal informant who was involved in the large-scale sale and distribution of methamphetamine. Diaz continued to operate the informant even though he was fully aware of the informant’s ongoing criminal activity. During this time, Diaz received bribes from the informant in return for intelligence on law enforcement activities as well as protection from investigation and arrest.

In addition to accepting illegal bribes, Diaz also engaged in drug trafficking while with the BPD. On September 20, 2012, while on duty, Diaz stopped a vehicle operated by two individuals from Yakima, Washington and used a BPD dog handler and police dog to search the vehicle. The search uncovered an ice chest containing approximately 10 pounds of methamphetamine divided into multiple bags. The BPD dog handler did not seize any of the drugs from the vehicle, but turned the scene over to Diaz and his partner to secure the methamphetamine and oversee the investigation of the incident. A week later, Diaz booked approximately one pound of methamphetamine from the vehicle stop into evidence. Diaz and his partner maintained possession of the remaining nine pounds of methamphetamine, and they ultimately sold it for their own personal gain.

According to the plea agreement, Diaz also filed a joint income tax return for the calendar year 2012 that falsely reported total income of $168,485 and did not include additional income of at least $97,900.

Acting U.S. Attorney Talbert stated: “The defendant attempted to take advantage of the trust placed in law enforcement officers for his personal gain. Law enforcement officers who accept bribes put the public and other law enforcement officers in danger. We appreciate the full cooperation of the Bakersfield Police Department and Chief Williamson, as well as our federal partners, in the investigation of this case.”

“Law enforcement officers who abuse their authority for personal gain betray the community they have been sworn to protect,” stated DEA Special Agent in Charge John J. Martin. “DEA is committed to working with our law enforcement partners to hold those accountable who participate in criminal activity that tarnishes the badge.”

“When individuals working in an official capacity violate the trust of their communities by abusing that power, they undermine the hard work of the entire law enforcement community,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “In exchange for cash, Detective Damacio Diaz agreed to tip-off and protect a known drug dealer. IRS CI followed the funds in his accounts and determined how much of the illegal proceeds did not make it to his tax returns. IRS-CI will continue to work with our law enforcement partners to ensure that those who attempt to illegally profit from their trusted positions are brought to justice.”

“The public rightfully expects every law enforcement officer to obey all laws they are sworn to enforce. Damacio Diaz’s illegal activities were in conflict with public safety, the law, and the safety of his fellow officers,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation Sacramento field office. “Such illegal and dangerous activity is not tolerable—especially when committed by an officer sworn to protect and service his community—and the FBI will continue to work with its partners to ensure any officer who engages in illegal activities and damages public trust in law enforcement faces justice.”

Diaz has also agreed to the forfeiture of $128,000, which constitutes property which was derived from, or is traceable to the proceeds obtained directly or indirectly from the commission of his criminal conduct. This case is the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Bakersfield Police Department. Assistant United States Attorneys Brian K. Delaney and Angela Scott are prosecuting the case.

Diaz is scheduled to be sentenced by Judge Lawrence J. O'Neill on September 26, 2016. Diaz faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Edgar Alexander Gomez, 41, and Jennifer Grace Barthel, 36, both of Bakersfield, pleaded guilty today to conspiracy to commit bank fraud, Acting United States Attorney Phillip A. Talbert announced. Gomez additionally pleaded guilty to aggravated identity theft.

According to court documents, between July and September 2012, Gomez and Barthel stole identity documents from the U.S. mail, including driver's licenses, social security cards, and credit and debit cards. On several occasions, Gomez and Barthel attempted to open bank accounts at federally insured financial institutions using the identities of people whose mail they had stolen. In connection with one of their attempts to fraudulently open bank accounts, Gomez and Barthel attempted to negotiate a check after forging the payee’s signature.

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 customers' mail and personal information from theft.”

This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant United States Attorneys Megan Richards and Christopher Baker are prosecuting the case.

Co-defendant Augustine Castro Salazar, 47, also of Bakersfield, pleaded guilty on November 16, 2015, to theft of U.S. mail. In his plea agreement, Salazar admitted that he and Gomez, on five occasions in August 2012, broke open and stole mail from mail boxes at several U.S. Postal Service facilities in Bakersfield. Salazar remains in custody awaiting sentencing.

Gomez and Barthel are scheduled to be sentenced by U.S. District Judge Lawrence J. O'Neill on September 26, 2016. They face a maximum statutory penalty of 30 years in prison and a $1 million fine for conspiracy to commit bank fraud. Gomez additionally faces a mandatory minimum sentence of two years in prison for aggravated identity theft. Salazar is scheduled to be sentenced on July 25, 2016, and faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — David James Lira, 39, of Roseville, pleaded guilty today to robbing five banks in Northern California, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, between December 2015 and January 2016, Lira robbed five banks. For his bank robberies and attempted bank robberies, Lira used various disguises including coats, fake beards, hats, and glasses. For some of his robberies, Lira obtained rental cars to vary his getaway vehicles. In total, Lira stole over $31,000.

Lira robbed the following banks:

• On December 3, 2015, he robbed the Umpqua Bank at 1801 Douglas Blvd. in Roseville;

• On December 11, 2015, he robbed the Wells Fargo Bank at 3456 McHenry Avenue in Modesto;

• On December 17, 2015, he robbed the Wells Fargo Bank at 4400 Tassajara Road in Dublin;

• On December 23, 2015, he robbed the U.S. Bank at 2111 Oroville Dam Blvd. East in Oroville;

• On January 6, 2016, he robbed the U.S. Bank at 2175 W. Grant Line Road in Tracy.

  Lira also attempted to rob two other banks:

• On December 1, 2015, he attempted to rob the Bank of the West at 1112 Galleria Blvd. in Roseville;

• On December 11, 2015, he attempted to rob the Delta Bank at 2711 McHenry Avenue in Modesto.

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Roseville Police Department, the Tracy Police Department, the Oroville Police Department, the Modesto Police Department, and the Alameda County Sheriff's Department. Assistant U.S. Attorney Michelle Rodriguez is prosecuting the case.

Lira is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on August 12, 2016. Lira faces a maximum statutory sentence of 20 years in prison and a $250,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Gregory Scott Baker, 48, of Newcastle, was sentenced on Thursday by United States District Judge Troy L. Nunley to five years and four months in prison and ordered to pay $18 million in restitution for defrauding the United Auburn Indian Community (UIAC), conspiring to launder monetary instruments, and filing a false tax return, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, between October 2006 and December 2007, Baker and Bart Wayne Volen, 54, of San Diego and Haiku, Hawaii, and Darrell Patrick Hinz, 48, of Cameron Park, engaged in a scheme to defraud the UIAC. An indictment from August 2012 charged the defendants with conspiring to commit mail and wire fraud and various money laundering violations. A superseding indictment from April 2013 added additional charges, alleging that Volen and Hinz filed false tax returns in 2006 and 2007, and that Baker filed false tax returns from 2006 through 2009. The defendants ultimately stole over $18 million from the UAIC through their scheme.

“With the help of his co-defendants, Gregory Scott Baker used his position as Tribal Administrator to steal over $18 million from the UAIC,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “By concealing and disguising the proceeds of the fraud, the defendant received numerous assets and personal property, totaling over $1.4 million. This sentencing should send a clear message that those involved in these types of schemes will be held accountable.”

According to court documents, in October 2006, the UAIC hired Volen, a developer, to finish construction on a school, a community center, and administrative offices on UAIC‑owned property on Indian Hills Road in Auburn. Volen submitted false and inflated invoices to the UAIC, and Baker and Hinz, both UAIC employees, approved the fraudulent invoices based on a kickback agreement between the three men. Volen supported his invoices with inflated cost proposals from his general contractor’s company, Sequoia Pacific Builders (SPB), and, at times, inflated invoices from various subcontractors. At Volen’s direction, over 160 SPB cost proposals were fraudulently inflated.

Baker was the UAIC tribal administrator whose duties included overseeing the Indian Hills office project. In this position of trust, he was subordinate only to the UAIC tribal council. Hinz was a contract employee hired by the UAIC to manage the construction at the Indian Hills office project site. Both Baker and Hinz were required to approve all invoices before the UAIC tribal council would sign checks to pay for completed work. During the scheme to defraud the tribe, both Baker and Hinz engaged in conduct to ensure that the tribal council would pay for the inflated and fraudulent invoices submitted by Volen. They were later paid by Volen for their participation in the scheme.

In order to disguise the proceeds of the fraud, Hinz sent a number of fraudulent invoices to Volen. These invoices were for consulting work that Hinz claimed he did for Volen. After the issuance of the false invoices, Volen sent Hinz 29 checks, totaling approximately $7.5 million. Hinz paid Baker indirectly for his assistance in the scheme, using money he received from Volen.

According to court documents, Hinz paid for a $12,500 weekend trip that he and Baker took in Hawaii and for certain obligations owed by Baker. Hinz also purchased a number of things for Baker, including various assets, personal property — a $70,000 BMW and a mobile home — several investment properties, a vacation condominium in South Lake Tahoe, and various improvements to property, such as a $54,000 pool at his primary residence. All of these transactions were conducted for the purpose of concealing and disguising the proceeds from the UAIC fraud. During the course of the scheme, Baker received over $1.4 million.

According to court documents, Baker filed tax returns that failed to report the income he derived from the scheme. As a result, the United States suffered a tax loss of between $250,000 and $550,000.

This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Michael M. Beckwith, John K. Vincent, and Kevin C. Khasigian are prosecuting the case.

Hinz and Volen previously pleaded guilty to similar charges in this case and are scheduled to be sentenced on June 16, 2016 and August 4, 2016, respectively. Chris W. Eatough, the owner of Sequoia Pacific Builders, previously pleaded guilty to a felony related to this case on June 20, 2013 (case number 2:13-cr-214 TLN). Eatough is scheduled to be sentenced on July 28, 2016. Both Hinz and Volen have agreed to pay at least $17 million in restitution to the UAIC. Eatough has agreed to pay between $600,000 and $950,000 in restitution to the UAIC.

These defendants face a maximum sentence of 20 years in prison, a $250,000 fine, or twice the value of the gross gain or loss, and a three-year term of supervised release for conspiring to commit mail and wire fraud. The maximum statutory penalty for conspiring to launder monetary instruments is 20 years in prison, a $500,000 fine or twice the value of the laundered money, and a three-year term of supervised release. The maximum statutory penalty for the tax violation is three years in prison, a $100,000 fine, or a fine of twice the value of the gross gain or loss, and a one-year term of supervised release. 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. — After a four–day trial, a federal jury found Robert Wallace Smith, 37, of Lemoore, guilty today of one count of receipt and distribution of child pornography, Acting U.S. Attorney Phillip A. Talbert announced. The trial was held before U.S. District Judge Dale A. Drozd.

According to evidence presented at trial, Smith’s laptop computer, which was seized pursuant to a federal search warrant on December 23, 2011, contained a collection of 388 videos and pictures of children being sexually abused.

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Megan A. S. Richards and John R. Edwards are prosecuting the case.

Smith was remanded into custody after the jury reached its verdict.

Smith is scheduled to be sentenced by Judge Drozd on September 12, 2016. Smith faces a mandatory minimum statutory penalty of five years in prison, a maximum statutory penalty of 20 years in prison, and a $100,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is 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.justice.gov/psc. Click on the “resources” tab for information about internet safety education.

FRESNO, Calif. — After a three day trial, Ashley Starling Thomas, 29, of Atlanta, Georgia, was convicted today by a federal jury of conspiring to launder money, conspiring to structure cash transactions, five counts of money laundering, and four counts of structuring cash transactions, Acting United States Attorney Phillip A. Talbert announced.

According to the evidence presented at trial, Thomas moved more than $200,000 in drug money through her bank accounts in a 22-day period in the summer of 2013. Thomas, who resided in Houston, Texas at the time, flew to Northern California on airline tickets paid for by a drug trafficking organization and made cash withdrawals of drug money from her bank accounts at dozens of bank branches in Sacramento, Eureka, and San Francisco. Thomas also traveled to Fresno where the drug trafficking organization was located. All of the cash withdrawals made by Thomas were in amounts less than $10,000, for the purpose of preventing her banks from filing Currency Transaction Reports on her cash withdrawals.

Following her conviction, U.S. District Judge Lawrence J. O’Neill ordered Thomas remanded into custody.

This case is being brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service- Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.

This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations in the U.S. by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorneys Grant B. Rabenn and Vincente A. Tennerelli are prosecuting the case.

Thomas is scheduled to be sentenced by Judge O’Neill on August 29, 2015. The maximum statutory penalty for money laundering conspiracy and money laundering is 20 years in prison and a $500,000 fine (or twice the value of the involved property). The maximum statutory penalty for structuring is 10 years in prison and a $500,000 fine. The maximum statutory penalty for structuring conspiracy is 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. — Michael Deshone Mathews, 42, of Elk Grove, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 11 years in prison for conspiracy to distribute oxycodone and possession with intent to distribute heroin, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, law enforcement began investigating reports in 2014 that Mathews was purchasing prescription medications from individuals in the Sacramento area. At the same time, investigators learned that Mathews was receiving cash deposits into various bank accounts from another state.

The investigation revealed that Mathews was meeting individuals with apparently legitimate prescriptions and paying those individuals in exchange for pills obtained from pharmacies. Mathews would then transport the pills to Washington state and receive payment for their resale through bank deposits.

When law enforcement officers searched Mathew’s home, vehicle, and storage locker, they found large quantities of methamphetamine, heroin, and prescription medications. Agents also found a large number of firearms and body armor.

This case was the product of an investigation by the Drug Enforcement Administration, the United States Department of Health and Human Services, the California Highway Patrol, the Sacramento County Probation Department, the Nevada County Sheriff’s Department, the United States Marshals Service, the California Bureau of Medi-Cal Fraud and Elder Abuse, the Sacramento Police Department, and the Elk Grove Police Department. Assistant United States Attorney Paul Hemesath prosecuted the case.

SACRAMENTO, Calif. — Paul La, 58, of Sacramento, was arraigned today on a 10-count indictment charging him with arson of a commercial structure, arson to commit a federal felony, and mail fraud, Acting United States Attorney Phillip A. Talbert announced. 

According to the indictment, on February 6, 2011, La intentionally set fire to Golden Nails & Hair, a salon that he owned at 8335 Folsom Boulevard in Sacramento. La then knowingly lied about the cause of the fire and the extent of his destroyed business property in order to obtain payment from his insurance company. 

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorneys Michael D. Anderson and Amanda Beck are prosecuting the case.

If convicted, La faces a minimum five years and a maximum of 20 years in prison for arson to a commercial structure; a consecutive 10 years in prison for arson to commit another felony; and a maximum of 20 years in prison for each count of mail fraud. Each count also carries a maximum fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned a six-count indictment on May 19, 2016, against Pamela Dawn Pierson, 50, of Vallejo, and Michelle Louise Travis, 50, of Suisun City. The indictment, which was unsealed today, charges both Pierson and Travis with conspiracy to commit wire fraud, conspiracy to defraud the United States government, filing false claims against the United States government, and aggravated identity theft, Acting United States Attorney Phillip A. Talbert announced. 

According to court documents, Pierson and Travis used identity theft victims’ personal identifying information to file fraudulent tax returns in order to obtain income tax refunds to which they were not entitled.

This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Fairfield Police Department, with assistance from the University of California – San Francisco Police Department. Assistant United States Attorney Brian A. Fogerty is prosecuting the case.

If convicted, Pierson and Travis face a maximum statutory penalty of 20 years in prison for the conspiracy to commit wire fraud charge, a maximum of 10 years in prison for conspiracy to defraud the United States government, a maximum of five years in prison for the false claims charges, and a mandatory term of two years in prison for the aggravated identity theft charges. Each of the charges carries a maximum fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — John Cal Howe II, 42, of Lakehead, was sentenced today to 18 months in prison after being convicted of 23 misdemeanor counts in a scheme to obtain thousands of dollars in veterans’ benefits to which he was not entitled, Acting United States Attorney Phillip A. Talbert announced. 

According to court documents, Howe was engaged in a scheme to defraud the VA for over three years. He falsely claimed he was a decorated United States Marine Corps veteran, although he had never enlisted or served in the armed forces of the United States. He stole $13,623.02 in benefits from the Veterans Affairs (VA) and sought to further defraud the VA by applying for a service-related pension. In connection with his scheme, he repeatedly lied about serving in the United States Marine Corps, including lying about being wounded in combat; about completing 12 tours of duty in operation Desert Shield, the Persian Gulf War, Somalia, Afghanistan, and Iraq; and about being awarded three Purple Heart medals. Further, when the VA began to question Howe’s lies, Howe tried to have a Congressman’s office intervene on his behalf.

This case was the product of an investigation by the Veterans Affairs Office of the Inspector General. Special Assistant United States Attorney Elliot Wong prosecuted the case.

FRESNO, Calif. — After a four-day trial, a federal jury found Kimberly English, 53, of Fresno, guilty today of two counts of filing a fraudulent tax return by an employee of the United States and four counts of making an opportunity for a person to defraud the United States, Acting U.S. Attorney Phillip A. Talbert announced. 

According to evidence presented at trial, English was an employee of the IRS in Fresno when she prepared and filed her own fraudulent tax returns for tax years 2011 and 2012. She also prepared and filed false and fraudulent tax returns for others, including her daughter and her daughter’s boyfriend, for the same tax years. The returns identified in court included fraudulent claims for false deductions and credits, such as the number of dependents and eligibility for the child tax credit. The false returns allowed English and other taxpayers to obtain undue tax refunds or improperly reduce their tax liabilities.

This case is the product of an investigation by the Treasury Inspector General for Tax Administration and the Tax Division of the Department of Justice. Assistant United States Attorneys Patrick R. Delahunty and Angela L. Scott are prosecuting the case.

English is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on August 15, 2016. English faces a sentence of up to five years in prison, a $10,000 fine, and mandatory dismissal from her job. 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. — After a three–day trial, a federal jury found Frank W. Coon, 51, of Chico, guilty today of one count of receipt of child pornography, Acting United States Attorney Phillip A. Talbert announced. The trial was held before United States District Judge Garland E. Burrell Jr.

According to evidence presented at trial, when agents executed a search warrant in March 2012, they found Coon inside his apartment at the keyboard of a computer. That computer was later found to be filled with child pornography videos. It was ultimately determined that over the course of approximately seven months, Coon used peer-to-peer software to download 117 child pornography videos. Several videos involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors.

This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Matthew G. Morris and Rosanne Rust are prosecuting the case.

After the jury verdict, the defendant was remanded into custody.

Coon is scheduled to be sentenced by Judge Burrell on August 5, 2016. Coon faces a mandatory minimum sentence of five years and a maximum possible 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.justice.gov/psc. Click on the “resources” tab for information about Internet safety.

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SACRAMENTO, Calif. — Moo Hoon “Steve” Kim, 54, of Cypress, was sentenced today to five years in prison and ordered to pay over $16 million in restitution for mail fraud related to a scheme to avoid paying excise tax on tobacco products, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, between 2006 and 2009, Kim was responsible for bringing over $35 million in untaxed other tobacco products (OTP) into California. OTP is any tobacco product other than cigarettes and consists primarily of cigars, chewing tobacco, and leaf tobacco. A federal jury found Kim guilty after a seven–day trial in March 2015 before United States District Judge William B. Shubb.

The evidence at trial showed that Kim used front companies, set up by others at his direction, to disguise his illegal purchases and subsequent sales of untaxed OTP from out-of-state sources. These companies included KS Wholesale in Vernon, California, and Cheap Cig Distributor in Paramount, California. Kim also used another front company – Discounted Tobacco in Long Beach, California – as a retail outlet for some of the untaxed OTP that he sold through his company, Jobber’s Wholesale. As a result of Kim’s scheme, California was defrauded of over $16 million in excise taxes. A large percentage of the revenue from the excise tax is used to fund California’s early childhood development program, First 5 California.

“Many resources were utilized to combat the unlawful trafficking of tobacco products by Moo Hoo Kim who was ultimately found guilty of mail fraud,” said Special Agent in Charge Jill A. Snyder. “ATF and our partners stopped the illegal activities by Kim which resulted in a loss of over $16 million dollars in excise taxes for state of California. Today’s sentencing reflects this significant prosecution.”

“This sentence is a huge victory in our fight against underground economic activity in our state,” said Board of Equalization Member Jerome E. Horton. “It reinforces the need for continued prosecution of these types of crimes.”

This case was the result of the efforts of a joint task force involving the U.S. Attorney’s Office, the California Department of Justice, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the California State Board of Equalization (BOE). To date, 27 defendants have been sentenced in 16 criminal cases. Over $50 million in restitution has been ordered to be repaid to BOE.  Nineteen civil forfeiture cases have resulted in over $16 million in assets seized for repayment to BOE for lost tax revenue. For the last several years, these offices have supported a task force dedicated to combating the systemic problem of tobacco excise tax evasion in California. In 2007, the BOE estimated that the state lost approximately $90 million in unstamped tobacco excise taxes to contraband distributors and approximately $120 million in excise taxes for taxed stamped tobacco like cigarettes. Because California has a relatively high tobacco excise tax rate, it is a frequent target for contraband tobacco smugglers and tax evaders. Assistant United States Attorney Michael D. Anderson and U.S. Department of Justice Antitrust Division Trial Attorney Richard A. Powers, designated as a Special Assistant United States Attorney, prosecuted the case.

FRESNO, Calif. — Brian Caputo, 27, of Arvin, pleaded guilty today to receipt and distribution of child pornography, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, between December 2008 and February 2014, Caputo used various social media accounts to pose as a girl and communicate with dozens of minor females throughout the United States. Soon after establishing communication with the minors, Caputo would threaten to reveal sexually explicit images of their friends unless they created and sent him images of themselves posing nude or otherwise engaging in sexually explicit conduct. In June 2013, Caputo contacted a 12-year-old girl in El Paso, Texas and threatened to distribute sexually explicit pictures of her 11-year-old friend unless she sent nude images of herself to Caputo. The victim told a family member who contacted the El Paso Police Department.

When law enforcement investigators traced the threatening communications to Caputo, they discovered that he had been victimizing other minors across the United States. For example, Caputo convinced one victim to take more than 660 sexually explicit images of herself and upload them to a Dropbox account that Caputo controlled.

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the El Paso Police Department and the FBI’s Violent Crimes Against Children Task Force. Assistant United States Attorney Michael Tierney is prosecuting the case.

Caputo is scheduled to be sentenced on August 8, 2016. Caputo faces a maximum statutory penalty of 20 years in prison for receipt or distribution of child pornography 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.

This case is 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.justice.gov/psc. 

Click on the “resources” tab for information about Internet safety education.

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FRESNO, Calif. —Christina Hernandez, 39, resident of Las Vegas, Nevada, appeared in court today and pleaded not guilty to an eleven-count indictment charging her with health care fraud and embezzlement from a health care benefits program, Acting United States Attorney Phillip A. Talbert announced. 

According to court documents, Hernandez was a provider relations specialist at the Fresno County Department of Behavioral Health, which is responsible for administering mental health services to Fresno County’s Medi-Cal beneficiaries. Hernandez was responsible for reviewing and approving claim forms from private mental health care providers who provided services to Medi-Cal beneficiaries. The indictment alleges that Hernandez submitted claim forms for medical services that were never actually provided and that she subsequently cashed the reimbursement checks for her own benefit. The indictment also alleges that Hernandez stole reimbursement checks that the county issued to doctors for actual medical services provided. In total, it is alleged that Hernandez stole approximately $98,560 from the Fresno County Department of Behavioral Services.         

This case was the product of an investigation by the Federal Bureau of Investigation and the Fresno County Sheriff’s Office. Assistant United States Attorney Grant B. Rabenn is prosecuting the case.

If convicted, Hernandez faces a maximum statutory penalty of ten 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.

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FRESNO, Calif. — Ralph Dale Shepherd, 58, of Bakersfield, was sentenced today to 12 years and seven months in prison for possession of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, on May 6, 2014, Shepherd was found to have possessed within his cellphone between 300 and 600 images of minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors.

“We are gratified by the sentence imposed which will provide some measure of justice,” said Ryan L. Spradlin, special agent in charge for HSI San Francisco. “Together, with our local law enforcement partners, we will continue to put predators behind bars and continue our efforts to create a safer community for our children.”

This case was the product of an investigation by the Bakersfield Office of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Brian W. Enos 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. — Andrew Kimura, 31, of Sacramento, pleaded guilty today to two counts of conspiracy to commit bribery, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, Kimura was an employee of the California Department of Motor Vehicles, working in Sacramento as a Licensing-Registration Examiner. He processed applications for Class A and Class B commercial driver’s licenses (CDLs) and Class C noncommercial driver’s licenses.

According to the plea agreement, between April 2013 and July 2015, Kimura received money from various brokers in order to provide CDLs for individuals who had not taken or passed the necessary DMV examinations. Kimura then accessed the DMV’s database to alter records indicating those individuals had passed certain tests. As a result, the individuals were able to obtain CDLs without having taken or passed the requisite written or behind-the-wheel driving tests. Additionally, Kimura also altered DMV records to provide for renewal of various CDLs in exchange for money from brokers.

This case is the product of an investigation by the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the California DMV. Assistant United States Attorney Todd A. Pickles and Rosanne Rust are prosecuting the case.

Emma Klem, another DMV employee, and Kulwinder Dosanjh Singh, a broker, previously pleaded guilty to conspiracy to commit bribery as part of the same investigation in United States v. Klem, 2:15-cr-139 GEB, and United States v. Kulwinder Dosanjh, 2:15-cr-146 GEB, respectively. No sentencing date has been set for them.

Co-defendants Robert Turchin, Mangal Gil, and Pavitar Dosangh Singh are awaiting trial. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Kimura is scheduled to be sentenced by United States District Judge Garland E. Burrell Jr. on August 12, 2016. Kimura faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Christopher Mroz, 23, of Sacramento, was arrested today at his residence, charged with aggravated sexual abuse, and assault resulting in serious bodily injury, Acting United States Attorney Phillip A. Talbert announced.

Mroz is scheduled to be arraigned today at 2:00 p.m. before U.S. Magistrate Judge Kendall J. Newman. On Thursday, a federal grand jury returned a two-count indictment against Mroz.

According to court documents, Mroz was a member of the Air Force stationed in Lakenheath, England in 2012 through 2014. Although he was discharged in 2014, he remained on base with his wife, who was an active duty member of the Air Force. The indictment alleges that during the course of their time in England, Mroz forcibly raped his wife and, on another occasion, broke her arm. Mroz is subject to prosecution for these alleged offenses based on the Military Extraterritorial Jurisdiction Act of 2000.

This case is the product of an investigation by the Air Force Office of Special Investigations and the FBI. Assistant United States Attorneys Jill Thomas and Michele Beckwith are prosecuting the case.

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

SACRAMENTO, Calif. —Charles Connor, 35, of Anchorage, Alaska, was sentenced today by United States District Judge Troy L. Nunley to six years and six months in prison for conspiracy to distribute and to possess with intent to distribute oxycodone, Acting United States Attorney Phillip A. Talbert announced.

According to court documents, on December 17, 2012, the United States Postal Service in Anchorage intercepted a package sent to Connor from co-defendant Stacy Mistler, a resident of Marysville, California. The package contained 300 oxycodone 30‑mg tablets. Law enforcement delivered the package to Connor and then arrested him.

Further investigation revealed that between November 7, 2011, and December 17, 2012, Mistler sent prescription drugs from Northern California to Connor in Alaska. Connor made deposits into Mistler’s bank account to pay for the pills. In total, Mistler shipped approximately 9,600 pills to Connor. About two-thirds of the pills were oxycodone and one‑third of the tablets were morphine. In exchange for the pills, Connor deposited approximately $125,000 into Mistler’s bank account.

On April 21, 2016, Judge Nunley sentenced Mistler to 35 months in prison.

This case was the product of an investigation by the Drug Enforcement Administration, the United States Postal Service, the Alaska State Troopers, the California Department of Justice Bureau of Medi-Cal Fraud & Elder Abuse, the U.S. Department of Health & Human Services, and the U.S. Marshals Service. Assistant United States Attorney Christiaan Highsmith prosecuted the case.

This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. OCDETF’s principal mission 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.