Eastern District of California

FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jesus Ramon, 31, of Moreno Valley, charging him with possession of methamphetamine and heroin with the intent to distribute, United States Attorney Benjamin B. Wagner announced.

According to court documents, Ramon negotiated to sell a large quantity of methamphetamine and heroin to purported buyers who were actually Drug Enforcement Administration agents.  Ramon brought the drugs to a parking lot located at Jensen and Highway 99 in Fresno where, after agents viewed the drugs, Ramon was arrested.  Approximately 45 pounds of methamphetamine and over one kilogram of heroin was seized from the vehicle Ramon arrived in.

This case is the product of an investigation by the Drug Enforcement Administration, Fresno Police Department, and the Fresno Sheriff’s Department. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.

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

SACRAMENTO, Calif. — A federal grand jury returned a 32-count indictment today against five Sacramento men, charging them with various crimes related to trafficking in narcotics and firearms, United States Attorney Benjamin B. Wagner announced.

• Osvaldo Hernandez, 33, is charged with conspiring to distribute methamphetamine and heroin; distributing methamphetamine, heroin, and cocaine; and possessing with the intent to distribute methamphetamine, heroin, and cocaine.

• Hector Gonzalez, 36, is charged with conspiring to distribute methamphetamine and heroin; conspiring to deal firearms without a license, distributing methamphetamine and heroin; dealing firearms without a license; and possessing with the intent to distribute methamphetamine.

• Christopher McCurin, 40, is charged with conspiring to deal firearms without a license and being a felon in possession of a firearm.

• Noe Baeza-Bravo, 30, is charged with conspiring to distribute methamphetamine; conspiring to deal firearms without a license; distributing methamphetamine; and dealing firearms without a license.

• Vidal Gonzalez, 56, is charged with conspiring to distribute methamphetamine; distributing methamphetamine, and dealing firearms without a license.

  According to court documents, between June 2014 and February 2016, on at least 19 different occasions, agents purchased methamphetamine, heroin, cocaine, and assault rifles from various defendants. According to the indictment, between April 2015 and October 2015, Baeza-Bravo, McCurin, and Hector Gonzalez conspired to willfully engage in the business of dealing in firearms without a license. Vidal Gonzalez, Baeza-Bravo, and Hector Gonzalez sold assault rifles to an FBI source.

  All five defendants were arrested on March 16, 2016. All have been released pending trial except for Hector Gonzalez, who remains in custody.

  If convicted, the defendants face the following penalties: the penalty for conspiring to distribute methamphetamine is 10 years to life in prison; the maximum penalty for conspiring to distribute heroin is 20 years in prison; the maximum penalty for conspiring to deal firearms without a license is five years in prison; the maximum penalty for distributing methamphetamine, heroin or cocaine is 20 years in prison; the maximum penalty for dealing firearms without a license is five years in prison; the maximum penalty for possessing with the intent to distribute methamphetamine, heroin, or cocaine is 20 years in prison; and the maximum penalty for being a felon in possession of a firearm is 10 years in prison. 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.

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

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

SACRAMENTO, Calif. — Kenley Black, 41, formerly of Burney, California, was arrested today at his home in Ft. Defiance, Arizona on charges of tax evasion, failure to file income taxes, and embezzlement and theft from a tribal organization, United States Attorney Benjamin B. Wagner announced.

A federal grand jury returned a 25-count indictment on Thursday, March 24, 2016, against Kenley, who served as the the Finance Director for the Pit River Tribe from 2009 to 2013. Black is not a member of the Pit River Tribe.

According to court documents, while employed as Finance Director, Black earned over $810,000 yet did not file income taxes and evaded paying over $225,000 in taxes. He is charged with five counts of tax evasion and five counts of failure to file income taxes. Additionally, he is charged with 15 counts of embezzlement and theft from a tribal organization for embezzling $81,578 from the Pit River Tribe in 2012 and 2013.

This case is the product of an investigation by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Justin Lee is prosecuting the case.

If convicted, Black faces a maximum statutory penalty of five years in prison and a $100,000 fine for each count of tax evasion. Additionally, Black faces up to one year in prison for each count of failure to file a tax return and up to five years in prison for each count of theft from a tribal organization. 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. — United States Attorney Benjamin B. Wagner is pleased to announce the 2015 winner of the Eastern District of California Outstanding Law Enforcement Agency Award in the Fresno Division. This is one of four awards presented annually to a law enforcement agency and an officer in each of the Sacramento and Fresno divisions of the Eastern District of California to recognize outstanding collaboration between federal, state and local law enforcement in addressing criminal conduct in this region.

The 2015 Fresno division’s Outstanding Law Enforcement Agency Award goes to the Stanislaus County District Attorney’s Office for its participation in task forces that resulted in a number of significant prosecutions involving violent crime and fraud in the mortgage industry.

U.S. Attorney Wagner stated: “Our success is only ever possible because of dedicated, hard-working law enforcement officers in both federal and state law enforcement. The investigators with the Stanislaus County District Attorney’s Office deserve particular recognition for their skill, diligence, and spirit of cooperation.”

“District Attorney Birgit Fladager said, “We truly value the partnership we have with the U.S. Attorney’s Office and are grateful for this recognition. Serving crime victims and holding criminals accountable can best be done when working together.”

Two investigators merit particular mention this year: Lieutenant Froilan Mariscal who worked on the gang task force that investigated the notorious, violent gang Nuestra Familia, and Investigator Glenn Gulley who worked on the FBI’s Mortgage Fraud Task Force while it was in operation and continues to work extensively with our office.

Lt. Mariscal spearheaded a long-term and complex investigation of the Nuestra Familia gang that resulted in a RICO prosecution and a 20-year sentence for the lead defendant. So far, nine co-defendants have pleaded guilty. The case involved a series of assaults executed in jail, drug trafficking, an armed home invasion and carjacking, and a gang fight involving a shooting. Lt. Mariscal was relentless in his pursuit of this investigation and brought with him knowledge, gang expertise, good judgment, and dogged determination.

Investigator Gulley currently has several significant fraud cases pending with the office. He has comprehensive knowledge of real estate fraud, including industry practices and case-specific knowledge of pertinent real estate transactions. Gulley investigated the case against Xue Heu, who was a serial investment fraudster. He posed as a government representative to purportedly sell distressed properties to unwitting investors. Heu was indicted for defrauding victims, and was indicted in the Western District of Texas for a separate real estate investment fraud scheme. Investigator Gulley coordinated the case with other investigators in Texas, marshaled evidence to obtain a guilty plea in the Eastern District of California case, and also found the time and energy to uncover additional criminal conduct Heu perpetrated while out on bond. Investigator Gulley’s determination resulted in a prison sentence of over five years, as well as an additional state court conviction for Heu’s criminal conduct while on bail.

FRESNO, Calif. — David Ryan Burchard, 38, of Merced, was arrested late Monday, charged in a criminal complaint with distribution of marijuana and cocaine on dark-web marketplaces, including the Silk Road, United States Attorney Benjamin B. Wagner announced. Burchard made his initial appearance on the complaint today before U.S. Magistrate Judge Erica P. Grosjean in Fresno.

According to the criminal complaint, Burchard, using the moniker “Caliconnect,” was a major narcotics vendor on the Silk Road and other dark-web marketplaces, including Agora, Abraxas, and AlphaBay. Dark-web marketplaces are operated on computer networks designed to conceal the true Internet Protocol (IP) address of the computers accessing the network. In addition, dark-web marketplaces allow for payments to be made only in the form of digital currency, most commonly in Bitcoin. While not inherently illegal, digital currency is used by dark-web marketplaces because online transactions in digital currency can be completed without a third-party payment processor and are therefore perceived to be more anonymous and less vulnerable to law enforcement scrutiny.

According to the complaint, Burchard accepted orders for marijuana and cocaine on dark-web marketplaces and then mailed the narcotics from post offices in Merced and Fresno County to his customers throughout the United States. Burchard was paid primarily in Bitcoin. Federal law enforcement estimates that Burchard, whose sales through the Silk Road were in excess of $1.4 million before that website was closed, was one of the largest vendors on the Silk Road. The complaint alleges that after federal law enforcement shut down the Silk Road website and arrested its founder in October 2013, Burchard transferred his narcotics business to Agora and then to AlphaBay, which are other dark-web marketplaces.

“The Department of Justice and our federal law enforcement partners will continue to investigate and prosecute major interstate narcotics traffickers,” said U.S. Attorney Wagner. “Those traffickers who believe they can escape the scrutiny of law enforcement by conducting their business on the dark-web and receiving payments in digital currency are mistaken.”

“HSI and our partners are at the forefront of combating illicit activities and financial crimes now seen in virtual currency systems,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “Criminals continue to spread their businesses through online black‑markets using digital currency like Bitcoin, however they do not escape the reach of law enforcement who will continue to investigate, disrupt, and dismantle hidden illegal networks that pose a threat in cyberspace.”

“The combined efforts of law enforcement agencies in this type of investigation produce a formidable force against narcotics trafficking,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “With the increase use of the dark-web to facilitate the drug trade and other illicit activities, IRS-CI will continue to trace the complex financial transactions that identify where the money comes from and where it goes.”

 San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated: “Postal Inspectors worked closely with the U.S. Attorney’s Office and our partners in law enforcement on this investigation and will continue to vigorously protect the U.S. Mail against all forms of criminal misuse.”

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Internal Revenue Service-Criminal Investigation, the U.S. Postal Inspection Service, and the Fresno Police Department, with assistance from Trial Attorney Anitha Ibrahim of the U.S. Department of Justice’s Computer Crimes and Intellectual Property Section. Assistant United States Attorney Grant Rabenn is prosecuting the case.

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

FRESNO, Calif. — United States Attorney Benjamin B. Wagner is pleased to announce the 2015 winner of the Eastern District of California Outstanding Investigator Award for the Fresno Division. This is one of four awards presented annually to a law enforcement agency and an officer in each of the Sacramento and Fresno divisions of the Eastern District of California to recognize outstanding collaboration between federal, state and local law enforcement in addressing public safety issues in this region.

The 2015 Fresno Division’s Outstanding Investigator Award goes to Fresno Police Detective David Fries for his work on cases of sex trafficking of minors. Detective Fries is deserving of recognition for his diligent, principled work. With cases that are difficult to build and involve reluctant and sometimes antagonistic victims, Det. Fries works tirelessly until the case is closed. His efforts have been essential to the successful prosecution of these cases.

U.S. Attorney Wagner stated: “It is my honor to recognize David Fries for the difficult and important work of bringing to justice those who prey upon some of the most vulnerable members of our community. It is in large part due to the hard work of Detective Fries and his colleagues that the Eastern District of California is seen as a national leader in the investigation and prosecution of the commercial exploitation of children. We thank him for his service.”

Recent cases that Detective Fries has investigated are:

Maurice Hunt: This case involved the trafficking of a 13-year-old girl. Hunt sexually assaulted, beat and trafficked this girl in Fresno and Bakersfield for 10 days. Hunt represented himself at trial and was convicted of sex trafficking of a minor, obstruction of justice, and witness tampering charges. His 50-year prison sentence was recently upheld on appeal.

Tyrell Richmond: This case involved three 16-year-old runaway girls trafficked by Richmond in Fresno and Visalia. They were required to turn over all the cash they earned and were not permitted to leave their motel room, other than to get ice. Richmond pleaded guilty on December 14, 2015, and is scheduled to be sentenced April 11, 2016, for sex trafficking of a minor.

Tryvell Powell: This case involved the sex trafficking of a 16-year-old girl in Fresno for about five months by Powell in which he forced the victim to earn a quota of $300 per day. Powell threatened to kill her and her unborn child if she left him. Powell pleaded guilty to enticement of a minor and was sentenced to 10 years and 10 months in prison.

SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner is pleased to announce the 2015 winner of the Eastern District of California Outstanding Investigator Award for the Sacramento division. This award is one of four awards presented annually to a law enforcement agency and an officer in each of the Sacramento and Fresno divisions of the Eastern District of California to recognize outstanding collaboration between federal, state and local law enforcement.

The Sacramento division’s 2015 Outstanding Investigator Award goes to California Employment Development Department Investigator Celia Lopez for her work in a sprawling unemployment and disability benefit fraud investigation in Sutter County with criminal conduct that spanned decades and resulted in over $14 million in loss. Celia Lopez was the original case agent for the case and, working with agents from the FBI and the Department of Labor, Office of Inspector General, she helped to bring five indictments against 29 individuals. The lead defendant, Mohammad Nawaz Khan, was sentenced to 12 and a half years in prison, Mohammad Adnan Khan was sentenced to nine years in prison, Mohammad Shahbaz Khan was sentenced to seven years in prison, and Iqila Begum Khan was sentenced to five years in prison.

U.S. Attorney Wagner stated: “It is my honor to recognize Celia Lopez for her work that led to the complete dismantling of one of the the most sophisticated and wide-reaching fraud schemes our district has seen. Her work on this case was timely, thorough, and meticulous. We thank her for her service.”

The Khans sold fake paystubs and reported false wages to EDD for the individuals who purchased those paystubs. The purchasers used the fake paystubs to fraudulently claim unemployment and disability benefits. Over the course of the conspiracy, the defendants reported wages for over 400 separate individuals that resulted in more than 2,000 fraudulent claims for unemployment and disability benefits.

Investigator Lopez marshalled over 20 years of voluminous records evidencing criminal conduct involving hundreds of potential subjects. She conducted scores of interviews of both criminal participants and witnesses. She worked tirelessly to identify not only the organizers of the scheme, but also the most culpable other participants in the scheme that should face charges. Investigator Lopez was able to distill the complex case into manageable documents, understandable spreadsheets, and persuasive charts. Even after the initial indictment was brought in 2012, she continued to investigate and discovered that the brothers of the main subject restarted the fraud scheme under other names shortly after the initial arrests. Investigator Lopez worked quickly to bring that evidence to the attention of the U.S. Attorney’s Office before the loss spiraled out of control. It resulted in an extensive grand jury investigation and perjury charges against new participants. Because of Investigator Lopez’s work, less than $30,000 was lost from the new scheme.

SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner is pleased to announce the 2015 winner of the Eastern District of California Outstanding Law Enforcement Agency Award for the Sacramento Division. This award is one of four awards presented annually to a law enforcement agency and an officer in each of the Sacramento and Fresno divisions of the Eastern District of California to recognize outstanding collaboration between federal, state and local law enforcement in addressing public safety issues in this region.

U.S. Attorney Wagner stated: “Our success was only possible because of the dedicated, hard-working staff of law enforcement agencies like Scott McDonald and Cheryl Mason. All successful prosecutions rely on good investigations. Without their professional attention to detail and dogged investigation, it would not have been possible to bring this defendant to justice. My office, the Eastern District, and San Joaquin County all owe a great debt to the District Attorney’s Office and the many skilled and dedicated people who work there.”

San Joaquin County District Attorney Tori Verber Salazar stated: “We are greatly appreciative of this award. It exemplifies the collaborative effort of our 220 employees with our law enforcement partners, like the U.S. Attorney’s Office, to make our communities safe.”

The 2015 Sacramento Division’s Outstanding Law Enforcement Agency Award goes to the San Joaquin County District Attorney’s Office for its work in the John Steven Keplinger case. Keplinger purported to sell used car engines online, took people’s money, and often never sent the engines or sent defective engines from junkyards. Working out of his house in Stockton, he had over 300 victims nationwide.

Before federal law enforcement became involved, the San Joaquin DA’s office, with Deputy District Attorney Scott McDonald and paralegal Cheryl Mason, did all they could to shut down the original website and find and shut down new websites he opened in order to continue his fraud. Their focus was always on the victims, many of whom were poor and were buying replacement engines because they could not afford a new car. When the FBI began investigating, McDonald and Mason connected them to the Bureau of Automotive Repair which had opened the investigation, and shared an extensive amount of victim complaint information collected from various agencies across the country. Throughout the time-consuming process, the San Joaquin County team of McDonald and Mason kept their focus on preventing Keplinger from committing further crimes. Eventually, he was sentenced to two years and three months in prison and a $100,000 fine.

FRESNO, Calif. — Piersha Dwan Woolridge, 37, of Atwater, was sentenced today by United States District Judge Anthony W. Ishii to four years and eight months in prison and ordered to pay $347,732 in restitution, for her role in a student aid fraud and identity theft scheme, United States Attorney Benjamin B. Wagner announced.

According to court documents, Woolridge was the leader of a scheme to defraud the United States Department of Education of student aid grants and loans. She submitted false financial aid applications to the University of Phoenix and Capella University on behalf of students who did not intend to attend either school. She also used stolen identities to apply for college financial aid in the names of persons who did not know their information was being used in the scheme. As a result of the scheme, more than $370,000 in fraudulently obtained grants and loans was disbursed.

“U.S. Attorney Wagner said: “Federal student loan programs are intended to improve the long-term prospects of students committed to education and to create a more competitive economy for the nation. Those who rip off these programs are not only stealing from the taxpayer, they are taking money intended for deserving students. The U.S. Department of Justice will continue to target fraudsters who perpetuate student loan fraud schemes.”

“I’m proud of the work of OIG special agents and our law enforcement colleagues for shutting down yet another student aid fraud ring and holding Ms. Woolridge and her conspirators accountable for their criminal actions,” said Natalie Forbort, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Western Regional Office. “OIG is committed to fighting student financial aid fraud, and we will continue to aggressively pursue those who participate in these types of crimes.”

On July 11, 2013, a jury found co-defendant Keith Woolridge guilty of conspiracy to commit mail fraud, mail fraud, and aggravated identity theft after a three-day jury trial. He was sentenced to three years and eight months in prison. Other participants in the scheme received the following prison sentences after pleading guilty: Yvette August was sentenced to two years and one month; Kim Gray was sentenced to two years and four months; and Sherise Woolridge was sentenced to four years and six months.

This case was the product of an investigation by the U.S. Department of Education Office of Inspector General. United States Attorneys Mark J. McKeon and Grant B. Rabenn prosecuted the case.

FRESNO, Calif. — Branden Adam Eidson, 34, of Turlock, was sentenced today by United States District Judge Dale A. Drozd to three years and one month in prison and ordered to pay $433,205 in restitution for structuring cash transactions and filing false tax returns, United States Attorney Benjamin B. Wagner announced.

According to court documents, Eidson operated a hydroponics equipment and supply business, Hooked Up Hydroponics. Between 2008 and 2010, he filed false federal income tax returns by underreporting approximately $1,244,365 in gross receipts for his business, resulting in a tax loss to the Internal Revenue Service of more than $430,000. In addition, Eidson made multiple cash deposits of $10,000 or less during this same time period in an attempt to prevent his bank from filing Currency Transaction Reports. In total, Eidson made more than $1.5 million in structured cash deposits.

This case was a product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Grant B. Rabenn prosecuted the case.

SACRAMENTO, Calif. – Khoa Tan Huynh, owner of the Script Life Pharmacy in Clovis has agreed to pay the United States $200,000 to settle civil claims for statutory violations occurring at the pharmacy, United States Attorney Benjamin B. Wagner announced today.

According to the settlement agreement, in June 2013, an audit revealed multiple violations of the Controlled Substances Act (CSA). The government contends that between June 6, 2011, and December 31, 2012, Script Life Pharmacy accepted and filled prescriptions that lacked required information, including the prescribers’ DEA registration numbers and signatures. In addition, the audit demonstrated shortages of several controlled substances, along with overages of several others.

“Abuse of prescription drugs is a significant societal problem. Pharmacies must take great care to ensure that controlled substances do not end up in the wrong hands. This settlement underscores the federal commitment to holding accountable dispensaries of controlled substances,” said U.S. Attorney Wagner.

The Controlled Substances Act (CSA) authorizes the Drug Enforcement Administration (DEA) to regulate controlled substances to create a “closed” system of distribution that provides the legitimate drug industry with a unified approach to narcotic and dangerous drug control. The CSA establishes a classification system for all controlled substances, including prescription medications, based upon the potential for abuse, dependence profile, and medicinal value of the drugs. The CSA and its implementing regulations mandate that prescriptions for controlled substances include certain critical information and require pharmacies to maintain certain records and inventories of these controlled substances; these controls allow the DEA to protect the distribution system and prevent drug diversion and abuse.

This case was prosecuted by Assistant United States Attorney Catherine Swann and results from an investigatory audit by the DEA Fresno Diversion Group.

FRESNO, Calif. —Bryson LaPaul Blair, 30, of Bakersfield, pleaded guilty today to being a convicted felon in possession of a firearm and ammunition, United States Attorney Benjamin B. Wagner announced.

According to court documents, during the execution of a search warrant at Blair’s residence, officers found a loaded Russian assault weapon under Blair’s bed and 145 rounds of ammunition. Blair was previously convicted in Kern County of a felony and was prohibited from possessing firearms and ammunition.

Blair is scheduled to be sentenced by United States District Judge Lawrence J. O’Neil on June 13, 2016. Blair faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is 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 Escobar is prosecuting the case.

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

SACRAMENTO, Calif. — Three Sacramento-area men have been charged in a 60-count indictment for a scheme to commit multiple arsons for profit, United States Attorney Benjamin B. Wagner announced.

The indictment returned by a grand jury on February 25, 2016, and unsealed today, charges Jamal M. Shehadeh, 57, of Sacramento, with all counts: seven counts of arson, 52 counts of mail and wire fraud, and one count of money laundering. Brian J. Stone, 57, of Elk Grove, is charged with 13 counts of mail fraud or wire fraud, and Saber A. Shehadeh, 73, of Sacramento, is charged with three counts of mail fraud. As a result of the scheme, the defendants and their associates received over $1.5 million in insurance proceeds.

According to court documents, the defendants participated in an arson fraud scheme that ran from at least December 2009 through September 2013, involving seven fires at six commercial buildings in Sacramento and Carmichael. Jamal Shehadeh owned and operated various businesses, many of which burned in commercial structure fires. Saber Shehadeh owned Tru Value Market and a nearby corner property, which were destroyed in two of the fires. Brian Stone provided business consultant services that included assisting with the insurance claims.

The dates and locations of the fires are as follows:

1. 1007 E Street and 427 10th St., Sacramento — December 27, 2009

2. 511 Broadway, Sacramento — June 9, 2010

3. 427 10th St., Sacramento — August 15, 2010

4. 6964 65th St., Sacramento — April 23, 2012

5. 5725 Marconi Avenue, Carmichael — September 24, 2012

6. 910 University Avenue, Sacramento — October 15, 2012

7. 2764 Fulton Avenue, Sacramento — June 16, 2013

According to the indictment, Jamal Shehadeh and others working with him and at his direction obtained insurance policies that covered fire damage for businesses owned and controlled by the defendants and their associates. In some cases, false statements were made to insurance representatives in order to obtain insurance coverage. Once Jamal Shehadeh knew that insurance policies existed, he deliberately set fires or caused fires to be set that damaged the businesses and at least one vehicle.

According to the indictment, after the properties were destroyed and damaged by fire, the defendants submitted insurance claims. Those claims contained false statements regarding the amount, cost, value, and true ownership of property damaged and destroyed in a particular fire, as well as the prior income of the business, the amount of lost business income, and whether a business had reopened.

As part of the scheme, the defendants made false statements regarding the identity of the company doing the post-fire cleanup, the relationship between the insured and the company doing the cleanup, the actual cost of the cleanup, and whether other companies had been consulted to do the cleanup work and had submitted bids and estimates. In some cases, the defendants used a company that Jamal Shehadeh controlled for the cleanup, while misrepresenting to the insurance companies that it was a third-party company.

In furtherance of the scheme, the defendants personally, and through their associates and companies and accounts that they controlled, received insurance proceeds from the insurance companies.

This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation with assistance from the Sacramento Metropolitan Fire District and the City of Sacramento Fire Department. Assistant United States Attorneys Michael D. Anderson and Christopher S. Hales are prosecuting the case.

If convicted, the defendants face the following possible penalties: The maximum statutory penalty for mail fraud or wire fraud is 20 years in prison and a $250,000 fine. The statutory penalty for arson of property used in commerce is five to 20 years in prison and a fine up to $250,000. There is a mandatory minimum sentence of 10 years in prison for the first count of arson to commit a federal felony, a mandatory 20 years in prison consecutive to any other sentence for each subsequent count and a fine of up to $250,000. The maximum statutory penalty for money laundering is 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Eric Worrell, 57, of Rancho Cordova and formerly a federal Department of Transportation employee, was sentenced today by United States District Judge Troy L. Nunley to five years in prison, to be followed by 20 years of supervised release, for receipt of child pornography, United States Attorney Benjamin B. Wagner announced. On release, Worrell will be required to register as a sex offender.

According to court documents, a thumb drive found in a hallway outside the offices of the federal Department of Transportation in Sacramento was turned over to investigators, who determined it belonged to Worrell. A forensic review of the thumb drive and Worrell’s work laptop found they contained hundreds of images of child erotica and child pornography. Worrell told agents that he would carry this thumb drive with him so that he would not leave the materials at home where his family members could find them.

“Countless children around the world fall prey to sexual predators. It is our priority to make every effort to keep our children safe,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “Together with our law enforcement partners, we work tirelessly to search out criminals who seek to harm or exploit innocent children and hold them accountable for their actions.”

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Department of Transportation’s Office of Inspector General. Special Assistant United States Attorney Josh F. Sigal 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. — Jordan Kinglee, 23, of Susanville, pleaded guilty today to honest services wire fraud for smuggling cellphones into prison, United States Attorney Benjamin B. Wagner announced.

According to court documents, while working as a correctional officer at the California Correctional Center (CCC) in Susanville, Kinglee smuggled cellphones into the prison for an inmate. A friend of the inmate, who was not in custody, paid Kinglee more than $8,000 to smuggle the cellphones. As a correctional officer, Kinglee was prohibited under California law from providing cellphones to prisoners, receiving any compensation from prisoners or their representatives, and from any barter or dealings with any prisoner. Kinglee was arrested on May 12, 2015.

This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation Office of Internal Affairs Northern Region, and the Susanville Police Department. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.

Kinglee is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on June 9, 2016. Kinglee faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. - United States District Judge John A. Mendez sentenced Vera Kuzmenko, 46, of Loomis, today to 14 years in prison for multiple counts of mail and wire fraud, witness tampering, and money laundering associated with her involvement in a mortgage fraud scheme that cost financial institutions over $16 million, United States Attorney Benjamin B. Wagner announced.

On December 4, 2015, after a 16-day trial, a federal jury returned guilty verdicts for Kuzmenko and Rachel Siders, 40, of Roseville. Siders is scheduled to be sentenced on June 21, 2016.

According to evidence presented at trial, from late 2006 through early 2008, Kuzmenko and Siders engaged in a mortgage fraud scheme involving over 30 properties in the Sacramento area. They were responsible for securing more than $30 million in residential mortgage loans on more than 30 homes purchased through straw buyers. Records introduced at trial showed Vera Kuzmenko received millions of dollars.

Kuzmenko, who had been a licensed real estate agent for part of the scheme, created fraudulent loan applications on behalf of the straw buyers. The loan applications contained materially false information as to the straw buyers’ income, employment, assets, and intent to occupy the residences. The loan paperwork also hid from lenders millions of dollars of payments that went to the defendants. She also served as a straw-buyer herself. With respect to the witness tampering count, the evidence showed that after Kuzmenko learned the FBI was investigating her, she told various witnesses to lie to the FBI and blame a dead woman for the fraud.

U.S. Attorney Wagner stated: “There were many causes for the mortgage crisis that decimated the national economy and hit the Sacramento region so especially hard. One factor that did not help, and that contributed to the explosion of foreclosures in our neighborhoods was the proliferation of mortgage fraud schemes like the one operated by Vera Kuzmenko. My office will continue to seek to hold accountable those who profited from such schemes, and the sentence imposed today is a significant reminder that there is a heavy price to pay for those who seek to profit through fraud.”

“Vera Kuzmenko’s scheme cost financial institutions over $16 million,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Fraud in the mortgage industry has played a major role in almost crippling this nation’s economy. While today’s sentencing cannot reverse the damage caused by these defendants, IRS-CI is committed to investigate individuals who engage in deceptive and fraudulent behavior, fueled by greed.”

“As the mastermind of a scheme to intentionally defraud members of her own community, Vera Kuzmenko, coordinated a network of individuals who perpetrated a multimillion-dollar fraud scheme,” said Assistant Special Agent in Charge Manuel Alvarez of the Federal Bureau of Investigation Sacramento field office. “Her sentence cannot undo the damage done to her community’s trust and financial well-being, but it will ensure justice for victims and serve as a warning to other would-be fraudsters.”

This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Lee S. Bickley and Michael D. Anderson and Special U.S. Attorney David J. Ward are prosecuting the case.

On October 20, 2015, Judge Mendez sentenced co-defendants Peter Kuzmenko, 37, of West Sacramento, to 19 years in prison; Aaron New, 41, of Sacramento, to 11 years and three months in prison; Nadia Kuzmenko, 36, formerly of Loomis, to eight years in prison; and Edward Shevtsov, 52, of North Highlands, to eight years in prison. They were found guilty on February 13, 2015, after a 21-day trial, of multiple counts of mail and wire fraud associated with the mortgage fraud scheme. In addition, Peter Kuzmenko, Edward Shevtsov, and Aaron New were found guilty of money laundering associated with the scheme, and Nadia Kuzmenko was found guilty of witness tampering.

FRESNO, Calif. — Francisco Javier Gomez-Rodriguez, 38, of Mexico, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown in the Sierra National Forest in Madera County, United States Attorney Benjamin B. Wagner announced.

According to court documents, co-defendant Humberto Ceballos-Rangel, 37, also of Mexico, was found at a campsite within the marijuana cultivation site, where agents found 5,904 marijuana plants. Gomez-Rodriguez and two other co‑defendants, Alejandro Ramirez-Rojo, 31, of Mexico, and Anthony Isaac Santibanez, 20, of Woodlake, California, were found a short time later approaching the grow site in a vehicle delivering supplies.

Ceballos-Rangel previously pleaded guilty. Both Gomez-Rodriguez and Ceballos-Rangel have agreed to make restitution to the U.S. Forest Service for the damage they inflicted on the public land and natural resources as a result of their marijuana cultivation activities. Native vegetation was cut down, and water was diverted from a nearby creek to irrigate the marijuana plants. A large quantity of trash was also found at the site.

Gomez-Rodriguez is scheduled for sentencing before U.S. District Judge Lawrence J. O’Neill on June 13, 2016. Ceballos-Rangel is scheduled for sentencing on April 18. They face a maximum statutory penalty of 20 years in prison and a $1 million 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.  

Santibanez and Ramirez-Rojo are scheduled for trial on August 9. They face additional charges, including depredation of public land and natural resources. The charges are only allegations; these defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

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. — Lloyd George Kenney, 65, was sentenced today by United States District Judge Anthony W. Ishii to 26 years and seven months in prison for an armed bank robbery he committed at the Tri Counties Bank in Modesto. The sentencing followed his conviction by a jury in December 2015 of armed bank robbery, using a firearm during a crime of violence, and of being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.

According to evidence presented at trial, on the morning of May 25, 2012, Kenney robbed the Tri Counties Bank located inside the Raley’s grocery store at Floyd Avenue in Modesto. Kenney was armed with a semi-automatic handgun and was heavily disguised, wearing a hockey helmet, facemask, long black coat and gloves. He took $2,872 from tellers at gunpoint and fled on a bicycle into a neighborhood to the east of the store where he had parked a van earlier.

Within minutes of being alerted to the robbery, a Modesto police officer saw Kenney, who was still wearing the helmet, enter his van and begin to drive away. The officer pulled the van over and Kenney was taken into custody. During a search of the van, officers found the cash taken from the Tri Counties Bank, Kenney’s bike, a hockey helmet, a mask, a loaded Glock handgun and a loaded Browning handgun. While searching Kenney, officers found a police scanner set to channels used by the Modesto Police Department.

Court records reflect that Kenney had federal felony convictions in 1984 and 1985, as well as a felony conviction in San Mateo Superior Court in 1974.

This case was the product of an investigation by the Federal Bureau of Investigation and the Modesto Police Department. Assistant United States Attorneys Michael Frye and Mia Giacomazzi prosecuted the case.

SACRAMENTO, Calif. — James Christopher Malcolm, 31, of Carmichael, was sentenced today to five years in prison for possessing abrin, a biological toxin; unlawful dealing in firearms; and possession and transfer of a machine gun, United States Attorney Benjamin B. Wagner announced.

United States District Judge Troy L. Nunley also ordered Malcolm to pay $30,918 in restitution.

According to court documents, Malcolm met with a confidential informant to discuss a plan to sell fully automatic rifles. At the meeting, Malcolm told the informant that distributing firearms was only a side business, and his main business was distributing explosives and poison. Later, Malcolm sold four short-barrel AR-15-style machine guns, 1.5 pounds of improvised explosive material, three blasting caps, and a firearm silencer to undercover agents posing as arms dealers for drug trafficking organizations. Additionally, Malcolm told undercover law enforcement agents that he could manufacture parts to convert Glock pistols into fully automatic machine guns. Malcolm actually demonstrated the process of converting pistols to machine guns and over the course of various meetings, sold the agents parts to convert 10 pistols.

In addition to face-to-face sales, Malcolm also utilized the online moniker “Dark_Mart.” Using the Dark_Mart moniker, Malcolm opened a seller’s account on Black Market Reloaded (BMR), an online marketplace accessed via TOR network. Malcolm’s Dark_Mart page on BMR provided a menu of items for sale, including Glock auto-sears, explosives, ricin, and abrin.

Abrin is a natural poison found in the seed of the rosary pea, a tropical plant. Similar to ricin, abrin is a protein inhibitor that prevents cells from making the proteins they need to survive. A dose as small as several micrograms may be fatal. The cause of death is typically internal bleeding or organ failure within three days. Abrin can be injected, inhaled, or swallowed. Abrin is classified as a “Select Agent and Toxin” by the United States Department of Health and Human Services because of the potential severe threat to public health and safety.

On BMR, Malcolm was contacted by two separate individuals who desired to purchase abrin, one in New York and one in San Francisco. Malcolm agreed to ship abrin to the two individuals in exchange for payment in bitcoin. On December 5, 2013, Malcolm shipped two packages from Vacaville, one to New York and one to San Francisco. Both shipments contained small glass vials filled with a rudimentary form of abrin concealed within flashlights.

This case was the product of an investigation by the Bureau of Alcohol Tobacco, Firearms and Explosives and the Federal Bureau of Investigation. Assistant United States Attorney Justin Lee prosecuted the case.

SACRAMENTO, Calif. — Clorenzo Griffin, 38, of Fort Lauderdale, Florida, was sentenced today to 10 years in prison for planning and participating in the robbery of marijuana from drug dealers in Yuba City, United States Attorney Benjamin B. Wagner announced.

In sentencing Griffin, United States District Judge Kimberly J. Mueller noted that the defendant was very lucky that nothing worse happened on the day of his arrest. Judge Mueller had earlier sentenced Griffin’s co-conspirators, Andre Jamison, 40, of Miami, Florida, to seven years and three months in prison and crew member Rodney Rackley, 24, of Miami, Florida, to six years in prison.

According to court documents, on October 11, 2014, a CHP officer in Sutter County attempted to stop a speeding Jeep Patriot. Griffin, with his co-conspirators as passengers, was the driver of the rented Jeep and drove evasively. As the pursuing CHP officer drew closer, Griffin drew his firearm. This caused a Sutter County Sheriff’s deputy to fire at Griffin in order to halt his aggression toward the pursuing CHP officer. The three defendants eventually abandoned the vehicle in a parking lot on Starr Drive and fled on foot. The defendants were subsequently taken into custody with the assistance of the Sutter County Sheriff’s deputies. At the time of his arrest, Griffin possessed a loaded .40-caliber firearm. Further investigation revealed that Griffin was a deputy U.S. Marshal from South Florida.

Court documents further indicate that before fleeing from the CHP, Griffin, Rackley and Jamison, wearing police ballistic vests, had brandished firearms and robbed three individuals at gunpoint of approximately 24 pounds of marijuana. The robbery took place in the parking lot of a hotel off State Route 99 in Yuba City.

“Violence relating to marijuana trafficking is a serious problem in this region, but it is particularly deplorable when the conduct involves a rogue member of federal law enforcement,” said U.S. Attorney Wagner. “Mr. Griffin not only endangered the public by his conduct, but he abused the public trust placed in federal law enforcement by using his service firearm to commit the crime.”

This case was the product of an investigation by the Drug Enforcement Administration, the California Highway Patrol, the Sutter County Sheriff’s Office, the Yuba City Police Department, and the Sutter County District Attorney’s Office. Assistant United States Attorney Jason Hitt prosecuted the case.

SACRAMENTO, Calif. — Bard College has agreed to pay $4 million to resolve allegations that it violated the False Claims Act in connection with a federal grant and with regard to the receipt and disbursement of Title IV federal student aid funds, United States Attorney Benjamin B. Wagner announced today.

The settlement announced today stems from a whistleblower complaint filed by two former students of Bard’s Master of Arts in Teaching Program at Paramount Bard Academy in Delano, California (Kern County) pursuant to the qui tam provisions of the False Claims Act, which permit private persons to bring a lawsuit on behalf of the United States and to share in the proceeds of the suit. The act permits the United States to intervene and take over the lawsuit, as it did in this case as to some of the students’ claims. The students will receive a percentage share of the settlement in an amount to be determined.

Bard College, a nonprofit institution with its main campus in Annandale-on-Hudson, New York, received funds under the Department of Education’s Teacher Quality Partnership Grant Program. The settlement resolves allegations that Bard received funds under the Teacher Quality Partnership Grant Program despite failing to comply with the conditions of the grant.

The settlement also resolves allegations that Bard awarded, disbursed, and received Title IV student loan funds at campus locations before such locations were accredited or before providing notice of such locations to the Department of Education, in violation of applicable regulations and Bard’s Title IV Program Participation Agreements with the Department of Education.

“When institutions of higher education opt to participate in loan and grant programs administered by teh Department of Education, their participation comes with conditions designed to protect the institution’s students and the integrity of the Department of Education’s programs,” said United States Attorney Benjamin B. Wagner. “Today’s resolution demonstrates the Department of Justice’s continuing commitment to ensuring that such institutions meet those conditions and fulfill their promises.”

“Throughout this Administration, the Department of Education has aggressively enforced accountability and compliance laws for institutions of higher education to protect students, families, and taxpayers. Today’s agreement illustrates our commitment to these enforcement efforts,” said U.S. Education Under Secretary Ted Mitchell. “Bard’s resolution through this agreement indicates a willingness to take responsibility, and a commitment to more effectively meet the requirements for implementing grants and distributing federal student aid and loans. As with all institutions, the Department will continuously monitor Bard to ensure that students, families and taxpayers are protected. ”

“I’m proud of the work of OIG special agents and staff and our colleagues in the U.S. Attorney’s Office whose work brought about today’s fair and reasonable settlement,” said Natalie Forbort, Special Agent in Charge of the Office of Inspector General’s Western Regional Office. “We will continue to work together to protect and maintain the integrity of the Department of Education’s programs. America’s taxpayers and students deserve nothing less.”

The settlement was the result of a coordinated effort among the Eastern District of California’s U.S. Attorney’s Office, the U.S. Department of Education and the U.S. Department of Education, Office of Inspector General. Assistant United States Attorney Vincente A. Tennerelli represented the United States in this matter.

The claims settled by this agreement are allegations only, and there has been no determination of liability.

FRESNO, Calif. — Dr. Paul S. Singh, 55, of Tehachapi, was sentenced today to six months in prison, to be followed by one year of home detention by United States District Judge Anthony W. Ishii, for a scheme to defraud patients and their insurers by implanting and billing for unapproved intrauterine devices (IUDs), United States Attorney Benjamin B. Wagner announced. A restitution hearing is set for May 9, 2016, at 10:00 a.m.

Singh, a medical doctor licensed to practice in California, had an office in Tehachapi. He provided obstetric and gynecological services to women, including providing forms of birth control. One form of birth control he provided were IUDs, which the Food and Drug Administration (FDA) regulates. The FDA has approved only one IUD that uses copper as its active ingredient, the ParaGard T-380A, which was sold only by its manufacturer and not available on third-party websites. Doctors who implant a non-FDA-approved copper IUD risk a patient’s safety. Such a device can result in an increased risk of pelvic inflammatory disease, ectopic pregnancy, hysterectomy, and other serious complications.

According to court documents, Singh bought unapproved IUDs on the Internet and implanted them in his patients. Rather than inform his patients or their insurers of using non-FDA approved IUDs, however, he fraudulently billed his patients and their insurers as if he had implanted FDA-approved IUDs, all without the permission or consent of his patients. Singh profited from the implanting unapproved IUDs by billing his patients and their insurers for the higher cost of approved IUDs, which was false and fraudulent.

According to court documents, Singh was sent multiple bulletins and newsletters warning against the use of unapproved IUDs. He was also warned that products sold by online pharmacies were not identical to the ParaGard T-380A and had not been approved as safe and effective by the FDA. In spite of the warnings, Singh purchased unapproved IUDs from online retailers and implanted them in numerous patients without their consent, between April 2008 and June 2012.

In August 2010, agents from the FDA confronted Singh about his history of implanting unapproved IUDs. During the meeting, Singh agreed to stop implanting them in his patients. In 2012, agents searched Singh’s office and learned that he had continued to implant unapproved IUDs in his patients.

According to the plea agreement, many of Singh’s patients later complained to him and other doctors about medical complications they associated with Singh’s insertion of the IUD. In multiple instances, Singh responded to such complaints by re-inserting the IUD rather than removing it. Some patients ultimately had to switch doctors in order to have the IUD removed.

U.S. Attorney Wagner stated: “Singh’s scheme risked the health of his patients and defrauded health care providers to benefit his bottom line. The investigation and prosecution of health care fraud is a priority for my office, particularly where that fraud endangers innocent patients.”

“Medical doctors have a special responsibility to make the best choices for their patients. When they ignore that responsibility and use unapproved medical devices, they put patients’ safety and health at risk,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations’ Los Angeles Field Office. “Our office will continue its work to ensure that doctors and other healthcare professionals understand the consequences of using medical products that have not been approved by the FDA.”

This case was the product of an investigation by the Food and Drug Administration, Office of Criminal Investigations. Assistant United States Attorneys Patrick R. Delahunty and Kirk E. Sherriff prosecuted the case.

FRESNO, Calif. — Jeremy Scott Danielson, 35, of Clovis, pleaded guilty today to striking a California Highway Patrol plane with a powerful green laser beam, United States Attorney Benjamin B. Wagner announced.

According to court documents, Danielson tracked and struck a CHP plane, Air 43, 18 to 20 times with a powerful green laser pointer. Clovis police officers were dispatched to the source of the laser beam and found Danielson with a laser pointer in his pants’ pocket. As a result of the laser strikes, the pilot and tactical flight officer, who were conducting a routine patrol, suffered flash blindness and watery eyes. The laser pointer was the size of a flashlight and had a danger warning.

Reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. This year, according to the Federal Aviation Administration (FAA), there have been over 22 laser incidents reported each day in the United States. The Eastern District of California, which encompasses 34 counties in the eastern portion of California, has a high proportion of reported laser incidents. Lasers can completely incapacitate pilots who are trying to fly safely to their destination, endangering their crew members, passengers and people on the ground.

Danielson is scheduled for sentencing before U.S. District Judge Lawrence J. O’Neill on May 31, 2016. He faces a maximum prison term of five years and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the Federal Bureau of Investigation, the CHP, and the Clovis and Fresno Police Departments. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

FRESNO, Calif. — United States District Judge Anthony W. Ishii sentenced four defendants today after being found guilty in a November 2015 trial for a tax refund scheme that claimed over $33 million in refunds, United States Attorney Benjamin B. Wagner announced.

• Gaylene Lynnette Bolanos, 58, of Fresno, was sentenced to 10 years in prison and ordered to pay $429,300 in restitution;

• Leroy Donovan Combs, 74 of Fresno, was sentenced to three years and nine months in prison;

• Charles Wayne Uptergrove, 57 of Madera County; was sentenced to three years and three months in prison; and

• Ladonna Lee Moon, 55, of Texas, was sentenced to one year and nine months in prison. All four defendants were convicted of submitting false claims against the IRS and conspiracy.

Prior to trial, three co-defendants pleaded guilty to submitting false claims to the IRS and were sentenced. On February 29, 2016, Judge Ishii sentenced Louis Calles, 67, of Fresno to 16 months in prison and James Schwartz, 61, of Fresno, to one year and a day of in prison. On January 11, 2016, Oswald Georgner, was sentenced to 18 months in prison.

According to court documents and testimony at trial, between August 2008 and October 16, 2008, Bolanos and Georgner, with the assistance of their co-defendants submitted false tax returns utilizing IRS Form 1099-OID in an attempt to eliminate their debts and receive sizable tax refunds. Specifically, the tax returns were fraudulent because the defendants listed their debts, bills, and other non-income items as interest income. The defendants then claimed that almost all of that interest income had been withheld and paid to the IRS, even though none of the purported interest income was ever withheld. Based on the reported withholdings, the defendants claimed they were owed millions of dollars in refunds by the IRS.

In all, the defendants submitted false tax returns to the IRS seeking more than $33 million in fraudulent tax refunds, and in response the IRS issued approximately $400,000 in unearned refunds

U.S. Attorney Wagner stated: “These defendants submitted bogus tax forms to the IRS claiming enormous unearned refunds. Through their fraud, they sought to enrich themselves and victimize American taxpayers. The U.S. Attorney’s Office will continue to work with IRS Criminal Investigation to enforce our nation’s tax laws and stop fraud and abuse.”

“With more than $33 million in federal tax refunds claimed, this was not your typical false claims case against the government — it exceeded most salaries of hard-working, tax-abiding citizens,” said Special Agent in Charge Michael T. Batdorf, IRS Criminal Investigation. “Plain and simple, this was fraud. Today‘s sentencings reflect the seriousness of these crimes, promotes respect for the law and provides just punishment.”

This case was the product of an investigation by the Internal Revenue Service‑Criminal Investigation. Assistant United States Attorneys Grant B. Rabenn and Henry Z. Carbajal III prosecuted the case with assistance from Trial Attorney Karen J. Sharp, of the Department of Justice, Antitrust Division.

SACRAMENTO, Calif. — An Orangevale resident was arrested today after a federal grand jury returned a four-count indictment on Thursday charging him with distribution, receipt and possession of child pornography and obstruction of justice, United States Attorney Benjamin B. Wagner announced. Dennis Boyle, 52, was arraigned today and pleaded not guilty. He is in custody, and a detention hearing has been scheduled for March 10, 2016.

According to court documents, law enforcement agents identified a user on a messenger service who was offering videos of child pornography in an online chat room. The investigation led to the residence of Boyle. Between August and October of 2015, Boyle allegedly distributed and received depictions of minors engaged in sexually explicit conduct. Boyle is alleged to have obstructed justice when he attempted to persuade a friend to delete electronic evidence stored on a laptop computer and on remote servers.

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

If convicted, Boyle 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.

SACRAMENTO, Calif. — Donald Henry Dugan, 55, of Nevada City, pleaded guilty today to possession with intent to distribute at least 50 grams of a mixture or substance containing a detectable amount of methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, on July 15, 2014, task force officers served a state search warrant of Dugan’s residence that resulted in the seizure of over a pound of methamphetamine, along with various items associated with controlled substance distribution such as baggies, a funnel, and a digital scale. In addition, a loaded handgun and ammunition were found in a backpack underneath Dugan’s desk. Dugan was previously convicted of a state felony in 1997 for possession of a controlled substance while carrying a loaded firearm.

This case is the product of an investigation by the Drug Enforcement Administration and the Nevada County Sheriff’s Narcotics Task Force. Assistant United States Attorney Matthew M. Yelovich is prosecuting the case.

Dugan remains in custody. He is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 17, 2016. Dugan faces a maximum statutory penalty of 40 years in prison, a mandatory minimum of five years in prison, and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Gurpinder Sandhu, 47, of Hercules, was sentenced today by United States District Judge Garland E. Burrell, Jr. to nine years in prison for possession of device-making equipment and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.

According to court documents, in September 2014 law enforcement began investigating reports of numerous vehicles fraudulently purchased with stolen identities from car dealerships throughout the Northern and Eastern Districts of California. The investigation led to Sandhu’s residence, where law enforcement located three of the fraudulently obtained vehicles: a 2014 Nissan Rogue, a 2014 Dodge Challenger, and a Harley Davidson motorcycle.

Inside Sandhu’s residence, law enforcement agents found many counterfeit items, including credit cards and California driver licenses. Law enforcement agents also found device-making equipment to manufacture these counterfeit items. This equipment included an embossing machine, cameras, printers, scanners, materials and chemicals used to produce identification cards, state seals, and a blue backdrop on the wall to imitate a California Department of Motor Vehicles ID photo background. Agents also found documents containing the names of real people, such as rental agreements, Comcast bills and sales receipts.

Based on the fraudulent documents found in the apartment, law enforcement identified at least 50 victims of identity theft. Sandhu and a co-defendant, used these identities to fraudulently purchase vehicles from car dealerships and retail goods from commercial stores such as Macy’s.

Sandhu succeeded in getting at least seven vehicles in this manner. In addition to the three vehicles named above, Sandhu fraudulently obtained a 2013 Yamaha motorcycle, a 2010 Chevrolet Corvette, a 2013 Dodge Challenger and a 2013 Dodge Charger.

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Highway Patrol. Special Assistant United States Attorney Josh F. Sigal prosecuted the case.

Sandhu was also ordered to pay $45,115 in restitution. He has remained in custody since his arrest on March 6, 2015. Charges remain pending against co-defendant Simone Aguilar, who is next scheduled to appear in court on April 8, 2016. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned a 10-count indictment today against Martin Carranza-Sanchez, 45, resident of Mexico, charging him with kidnapping Mexican citizens seeking assistance in entering the United States without documentation, and with a scheme to defraud the families of persons seeking to enter the country, United States Attorney Benjamin B. Wagner announced. Carranza-Sanchez is charged with conspiracy to commit hostage taking, conspiracy to commit wire fraud, wire fraud, interstate communications to obtain ransom or reward, and carrying a firearm during a crime of violence. He was arrested at the border on January 21, 2016, and currently is in federal custody in Fresno, based on a complaint previously issued in this case.

The indictment alleges that Carranza-Sanchez and others conspired to obtain payment from people residing in the United States through various means, including by taking hostage their undocumented immigrant family members and friends who were seeking entry into the United States, and by falsely representing to the U.S. residents that their relatives had been smuggled into the United States. In five instances between December 2010 and November 2015, involving six victims, the indictment alleges that Carranza-Sanchez held the undocumented immigrants hostage in Mexico, threatened to harm them, and, on occasion, did harm them. He allegedly told the U.S. residents that he would harm or kill the immigrants if the U.S. residents did not pay him immediately.  Carranza-Sanchez also is charged with fraud for falsely representing to U.S. residents that he would release the undocumented immigrants and deliver them to the United States upon receipt of payment by the U.S. residents.

“Kidnapping and fraud are serious federal crimes, regardless of the legal status of the victims in this country,” said U.S. Attorney Wagner. “The abuse and exploitation of undocumented immigrants is unacceptable, and we will continue to investigate and prosecute those who engage in such criminal conduct.”

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 Angela L. Scott  is prosecuting the case.  The investigation is ongoing.

Carranza-Sanchez is currently detained in the Eastern District of California. If convicted, Carranza-Sanchez faces a maximum statutory penalty of life in prison. 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. — Phillip Dale Selfa, 63, of Stockton, was sentenced today to 15 years and eight months in prison for six counts of bank robbery, United States Attorney Benjamin B. Wagner announced.

On July 7, 2015, Selfa pleaded guilty to robbing the following banks:

• December 27, 2010, Bank of Stockton in Pine Grove for $2,000;

• January 13, 2011, Bank of the West in Lockeford for $4,000;

• February, 25, 2011, Farmers and Merchants Bank in Linden for $351;

• March 30, 2011, Westamerica Bank in Turlock, CA for $4,500;

• April 29, 2011, Bank of the West in Ripon for $3,050, and

• May 5, 2011, Bank of the West in Lodi for $4,037.

In each of his six robberies, Selfa carried boxes, bags, and satchels into the financial institutions. He also displayed a purported detonator during his robberies and claimed to bank personnel that he could set off explosives that were supposedly in his boxes and bags that he left in the banks as he exited. After each robbery, each bank was closed and streets neighboring the banks were barricaded for bomb squad personnel. The bombs and detonators were each determined to be fake. During his robberies, Selfa also wore various disguises and head coverings.

This case was the product of an investigation by the FBI with the assistance from the Stockton Police Department, the Modesto Police Department, the Amador County Sheriff’s Office, the San Joaquin County Sheriff’s Office, and the Stanislaus County Sheriff’s Office. Assistant U.S. Attorneys William Wong and Michelle Rodriguez prosecuted the case.

SACRAMENTO, Calif. — Benjamin Cunha, 33, of Placerville, was sentenced today to five years in prison for arson, United States Attorney Benjamin B. Wagner announced. In addition, United States District Judge John A. Mendez ordered Cunha to pay $246,862 in restitution to Cal Fire.

According to court documents, Cunha, a seasonal CAL FIRE firefighter from 2001 to 2003, admitted to setting at least 30 wildland fires during the summers of 2006 and 2007. Two of these fires burned onto federal land. Cunha indicated that his motivation for setting the fires was to overcome boredom, to earn overtime pay for fighting the fires, and to impress his peers.

“As he admitted in his plea agreement, this defendant set a multitude of fires with a callous disregard for the danger to life and property that he was inflicting,” said U.S. Attorney Wagner. “Today’s sentence is a just result that takes a serial arsonist off the streets.”

“Benjamin Cunha set over 30 fires in El Dorado and Amador Counties. ATF worked with our local partners and utilized several resources to perfect an investigation for federal prosecution,” said Special Agent in Charge Jill A. Snyder. “Cunha had no consideration for CAL FIRE fighters’ safety when he set the fires, placing them in grave danger during the fire suppression efforts.”

On October 6, 2015, Cunha pleaded guilty to one count of arson for the July 6, 2007, Mine Fire, a vegetation fire that burned approximately 80 acres including federally owned land. Cunha admitted to using a distinctive time-delay incendiary device, which he had also used to start many of his other fires.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from CAL FIRE. Assistant United States Attorneys William S. Wong and Audrey B. Hemesath prosecuted the case.

SACRAMENTO, Calif. — Christian Parada-Renteria, 40, of Woodland, pleaded guilty today to one count of concealing a widespread conspiracy to commit wire fraud and one count of concealing a mail fraud transaction in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.

According to court documents, Parada-Renteria was a loan officer at Delta Homes and Lending Inc., a Sacramento-based real estate and mortgage lending company. Delta Homes opened one office in 2003 and eventually had five offices in Sacramento and Woodland.

Between October 2004 and May 2007, Delta Homes’ founder and president Moctezuma Tovar, 46, and other real estate agents, loan officers, and loan processors engaged in a mortgage fraud conspiracy. Parada-Renteria, a loan officer, assisted the conspirators with loan applications that contained lies, including false statements regarding a borrower’s income, employment, rent history, credit rating, etc. Parada-Renteria concealed the scheme by taking steps to make sure the truthfulness of the loan applications and supporting documentation provided by Delta Homes was not questioned by the lenders.

According to the plea agreement, in August or September 2006, Parada-Renteria handled the loan file for the purchase of a Citrus Heights property. The borrower did not have sufficient funds required by the lender to fund the loan. Parada-Renteria concealed the fraudulent loan of $6,000 by a co-conspirator to the borrower that would inflate the borrower’s bank account balance so that the lender would fund the loan. Once the loan had closed, Parada-Renteria took the repayment from the borrower and reimbursed the co-conspirator from his own bank account.

The aggregate sales price of the homes involved in the conspiracy was in excess of $10 million, and as a result of the conspiracy, mortgage lenders and others suffered losses of at least $4 million.

Parada-Renteria is scheduled to be sentenced by Senior U.S. District Judge William B. Shubb on June 6, 2016, along with co-defendants, Tovar and Manuel Herrera, 36, both of Sacramento, Sandra Hermosillo, 53, of Woodland, and Jun Michael Dirain, 43, of Antelope, who have already pleaded guilty in this case. Parada-Renteria faces a maximum statutory penalty of six years in prison and a $500,000 fine. Each of the other defendants faces a maximum statutory penalty of 30 years in prison and a $1 million 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.

Co-defendants Jaime Mayorga, 36, and Ruben Rodriguez, 38, both of Sacramento, have a trial date of April 5, 2016. The charges against Mayorga and Rodriguez are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Brian A. Fogerty are prosecuting the case.

SACRAMENTO, Calif. — On Thursday, February 18, 2016, Assistant U.S. Attorney Karen A. Escobar received the High Intensity Drug Trafficking Area’s national Outstanding Prosecutor Award today for her leadership in the prosecution of rural trespass marijuana growers for their environmental crimes, exposing violators to criminal and civil penalties, and for bringing public attention to the environmental destruction caused by large-scale marijuana growers, United States Attorney Benjamin B. Wagner announced.

The annual HIDTA Awards Banquet, which was held in the Wardman Park Marriott in Washington D.C., recognizes outstanding investigative achievements across the country. The Outstanding Prosecutor Award is presented to the prosecutor whose work is particularly notable in advancing the mission of the HIDTA program.

The HIDTA program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. There are currently 28 HIDTA’s, which include approximately 17.2 percent of all counties in the United States and a little over 60 percent of the U.S. population. HIDTA-designated counties are located in 48 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia. The Central Valley HIDTA covers 12 counties in the Eastern District of California, and funds several federal/state/local task forces in the region.

William Ruzzamenti, Executive Director of the Central Valley California HIDTA stated: “The National Prosecutor of the Year is a very significant and prestigious award. It recognizes that Ms. Escobar is not only one of this country's most outstanding prosecutors, but also as a special person within her community. Ms. Escobar blends a tremendous legal intellect with old fashion common sense in an extraordinary way to assure criminals are held accountable.”

U.S. Attorney Wagner echoed those sentiments, saying, “Karen Escobar has long been one of the most productive federal narcotics prosecutors in this district. She has been a particular leader in combatting the environmental devastation caused by marijuana cultivators in National Forests and National Parks. I am very pleased that her work is now being recognized on a national level. This award is well-deserved.”

Karen Escobar has been an Assistant U.S. Attorney in Fresno for more than 26 years, specializing in the prosecution of drug trafficking organizations plaguing California’s Central Valley. She has prosecuted more than 2,000 federal cases with a conviction rate of 99 percent. She pioneered the pursuit of environmental crime charges against illegal marijuana growers whose toxic cultivation practices endanger wildlife, the environment, and public health; holding them responsible for their actions and bringing much-needed public attention to the issue. She contributed to the development of national sentencing guidelines for environmental harm caused by illegal marijuana grows.

SACRAMENTO, Calif. — Brandon Johnson, 26, of Stockton, was sentenced today to 10 years in prison for distributing methamphetamine and selling firearms without a license, United States Attorney Benjamin B. Wagner announced.

According to court documents, special agents conducted an extensive investigation into Johnson’s gun and drug dealing activities. From August 2013, to October 2013, Johnson met repeatedly with an undercover agent. During the course of four separate meetings, Johnson sold the undercover agent more than half a pound of methamphetamine and although Johnson did not have a license to sell firearms, he sold the undercover agent five firearms, including four pistols and one AK-type DC Industries 7.62 x39 caliber rifle.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Christiaan Highsmith prosecuted the case.

SACRAMENTO, Calif. — Hector Absi, 47, of Las Vegas, Nevada, was arrested today by FBI agents at his home in Las Vegas. He is charged in a 16-count indictment, unsealed today, that was returned by a federal grand jury in Sacramento on February 11. The indictment charges Absi with conspiracy to commit mail fraud, wire fraud, and securities fraud; substantive counts of mail, wire, and securities fraud; and with other securities-related charges, United States Attorney Benjamin B. Wagner announced.

According to court documents, Absi is the former head of the sales department of Marrone Bio Innovations Inc. (MBI), a company that developed and sold “bio-based” pesticides and is headquartered in Davis, California. Absi also served as MBI’s Chief Operating Officer from January 2014 until his resignation in August 2014. MBI is a publicly traded company; its stock trades on the NASDAQ exchange under the ticker symbol “MBII.” As a publicly traded company, it is required to file quarterly and annual reports with the Securities and Exchange Commission (SEC). In its reports, MBI stated that it recorded revenue in accordance with generally accepted accounting principles (GAAP).

The indictment alleges that, in order to increase sales of MBI products, Absi sold MBI products to customers with side agreements that offered “inventory protection,” under which MBI agreed to either repurchase the product from the customer or extend the terms of payment if the customer was still in possession of the product after a specified time period. Under GAAP, revenue from sales that include such agreements cannot be recognized on the company’s books. The indictment alleges that between March 2013 and July 2014, Absi conspired with at least one other MBI employee to misrepresent to MBI’s accounting department, its external auditors, and the investing public that MBI had made sales under such terms. By concealing the practice, Absi caused MBI to report a doubling of its revenue in 2013 in comparison to 2012. Absi also allegedly conspired with others to backdate the delivery of certain shipments of MBI’s products to enhance MBI’s reported revenues for the quarter. Absi received a performance-based bonus and exercised stock options during a time when MBI’s inflated revenue figures were being reported.

“It is critical to the integrity of the securities markets that we criminally prosecute those who act to profit by deceiving those markets and the investing public who rely on the accuracy of publicly filed reports,” said U.S. Attorney Wagner. “I am pleased that we have been able to coordinate effectively with the SEC in this matter.”

“We thank the SEC for their partnership in this successful investigation. Such collaboration is essential to the success of securities fraud investigations and ultimately protecting the integrity of the securities market,” said Assistant Special Agent in Charge Manuel Alvarez of the Federal Bureau of Investigation’s Sacramento field office. “Securities fraud is something most associate with Wall Street, not our region; however, our region is home to many successful, publicly traded companies. Unfortunately, this success also attracts greed-based crime and we will work with our partners to root out those who seek to deceive investors by manipulating revenue data.”

“We allege that Marrone Bio misled investors to make itself look like a fast-growing new public company,” said Jina L. Choi, Director of the SEC’s San Francisco Regional Office. “Public companies and their officers should know better that taking shortcuts to recognize revenue in the near term is harmful to investors and can be damaging to a company’s long-term success.”

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

The Securities and Exchange Commission has also conducted an investigation into the conduct of Hector Absi while he was an officer of MBI. Today it filed a civil complaint against Absi in the U.S. District Court for the Eastern District of California, alleging that Absi violated the Securities Act of 1933, and the Securities Exchange Act of 1934, and federal rules issued under the Exchange Act, and seeking an injunction against Absi, disgorgement of wrongfully obtained benefits, and civil penalties.

If convicted, Absi faces a maximum statutory penalty of 25 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SEC Files Separate Civil Complaint

Hector Absi, 47, of Las Vegas, Nevada, was arrested today by FBI agents at his home in Las Vegas.  He is charged in a 16-count indictment, unsealed today, that was returned by a federal grand jury in Sacramento, California, on February 11.  The indictment charges Absi with conspiracy to commit mail fraud, wire fraud and securities fraud; substantive counts of mail, wire and securities fraud; and with other securities-related charges, U.S. Attorney Benjamin B. Wagner for the Eastern District of California announced.

According to court documents, Absi is the former head of the sales department of Marrone Bio Innovations Inc. (MBI), a company that developed and sold “bio-based” pesticides and is headquartered in Davis, California.  Absi also served as MBI’s Chief Operating Officer from January 2014 until his resignation in August 2014.  MBI is a publicly traded company; its stock trades on the NASDAQ exchange under the ticker symbol “MBII.”  As a publicly traded company, it is required to file quarterly and annual reports with the Securities and Exchange Commission (SEC).  In its reports, MBI stated that it recorded revenue in accordance with generally accepted accounting principles (GAAP).

The indictment alleges that, in order to increase sales of MBI products, Absi sold MBI products to customers with side agreements that offered “inventory protection,” under which MBI agreed to either repurchase the product from the customer or extend the terms of payment if the customer was still in possession of the product after a specified time period.  Under GAAP, revenue from sales that include such agreements cannot be recognized on the company’s books.  The indictment alleges that between March 2013 and July 2014, Absi conspired with at least one other MBI employee to misrepresent to MBI’s accounting department, its external auditors and the investing public that MBI had made sales under such terms.  By concealing the practice, Absi caused MBI to report a doubling of its revenue in 2013 in comparison to 2012.  Absi also allegedly conspired with others to backdate the delivery of certain shipments of MBI’s products to enhance MBI’s reported revenues for the quarter.  Absi received a performance-based bonus and exercised stock options during a time when MBI’s inflated revenue figures were being reported.

“It is critical to the integrity of the securities markets that we criminally prosecute those who act to profit by deceiving those markets and the investing public who rely on the accuracy of publicly filed reports,” said U.S. Attorney Wagner.  “I am pleased that we have been able to coordinate effectively with the SEC in this matter.”

“We thank the SEC for their partnership in this successful investigation,” said Assistant Special Agent in Charge Manuel Alvarez of the FBI’s Sacramento Field Office.  “Such collaboration is essential to the success of securities fraud investigations and ultimately protecting the integrity of the securities market.  Securities fraud is something most associate with Wall Street, not our region; however, our region is home to many successful, publicly traded companies.  Unfortunately, this success also attracts greed-based crime and we will work with our partners to root out those who seek to deceive investors by manipulating revenue data.”

“We allege that Marrone Bio misled investors to make itself look like a fast-growing new public company,” said Director Jina L. Choi for the SEC’s San Francisco Regional Office.  “Public companies and their officers should know better that taking shortcuts to recognize revenue in the near term is harmful to investors and can be damaging to a company’s long-term success.”

This case is the product of an investigation by the FBI. Assistant U.S. Attorney Todd A. Pickles is prosecuting the case.

SEC has also conducted an investigation into the conduct of Hector Absi while he was an officer of MBI. Today it filed a civil complaint against Absi in the U.S. District Court for the Eastern District of California, alleging that Absi violated the Securities Act of 1933 and the Securities Exchange Act of 1934 and federal rules issued under the Exchange Act and seeking an injunction against Absi, disgorgement of wrongfully obtained benefits, and civil penalties.

If convicted, Absi faces a maximum statutory penalty of 25 years in prison and a $5 million fine.  Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.  The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. —Anthony Castaneda, 45, of Oakdale in Stanislaus County, was sentenced today by Judge Morrison C. England Jr. to serve five months of house arrest and two years of probation for receipt of a gratuity by a public official, United States Attorney Benjamin B. Wagner announced.

According to court documents, while working as a contracting official at the Department of Veterans Affairs, Castaneda was in a position to influence the award of construction contracts at VA facilities, including the VA hospital at the former Mather Field in Sacramento. In 2010, Castaneda received from a construction contractor a prepaid vacation package at a theme park worth approximately $2,250. Castaneda and his family traveled to the theme park for five days in October 2010. At the time that he accepted that gift, Castaneda was in a position to influence the award of construction contracts by making recommendations about which contractors should be given VA business. Court records also show that Castaneda received a second vacation package from the same contractor, worth approximately $1,440, in 2008.

In addition to his period of house arrest, Castaneda was ordered to forfeit the value of the 2010 vacation package and to pay a $2,000 fine.

The contractor in question has been charged separately in federal court in San Jose: United States v. Herrera, case number 5:14-cr-219. He pleaded guilty and on December 16, 2015, was sentenced to three years’ probation.

This case was the product of an investigation by the Veterans Affairs Office of Inspector General and the Federal Bureau of Investigation. Assistant United States Attorney Matthew G. Morris prosecuted the case.

FRESNO, Calif. — A federal grand jury returned two indictments today charging two individuals with drug trafficking offenses and one with an additional firearms charge, United States Attorney Benjamin B. Wagner announced.

In the first indictment, Michael Paul Lopez, 32, of Fresno, was charged with with being a felon in possession of a firearm and ammunition and with possession of a controlled substance with the intent to distribute. According to court documents, on January 12, 2016, Lopez, a previously convicted felon, was in possession of a Raven Arms MP .25-caliber handgun that was loaded with .25-caliber ammunition. He was also in possession of methamphetamine.

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

In the second indictment, the federal grand jury returned a two-count indictment against Ivan Vizcarra, 28, of Los Angeles, charging him with federal drug trafficking offenses. According to court documents, on November 19, 2015, Vizcarra was arrested by the Fresno Police Department after he attempted to deliver 12 pounds of methamphetamine.

This case is the product of an investigation by the Drug Enforcement Administration and the Fresno Police Department. Assistant United States Attorney Daniel J. Griffin is prosecuting both cases.

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

SACRAMENTO, Calif. — Melissa Torres, 29, and Sally Evans, 28, both of Stockton, were sentenced today by United States District Judge Morrison C. England Jr. for their involvement in the distribution of methamphetamine and firearms from a residence in Stockton, United States Attorney Benjamin B. Wagner announced.

Torres was sentenced to nine years in prison for distribution of methamphetamine and dealing firearms without a license. Evans was sentenced to seven years and three months in prison for distribution of methamphetamine.

“Criminals who traffic illegal drugs often possess firearms as a part of their unlawful enterprise. Targeting armed narcotic traffickers remains a top priority for ATF,” said Special Agent in Charge Jill A. Snyder.

According to court documents, in January, February, and March of 2014, Melissa Torres met with an undercover agent on eight separate occasions. During each of those meetings, Torres either sold or assisted in the sale of methamphetamine or firearms to the undercover agent. In total, Torres was involved in selling more than a half pound of methamphetamine and eight firearms to the undercover agent. The firearms included four pistols, a handgun, two rifles, and a shotgun. During that same time frame, Evans was involved in the sale of more than one pound of methamphetamine to the undercover agent. Co-defendant Jorge Magana supplied much of the methamphetamine sold by Torres and Evans. Co-defendants Donovan Torres and Johnny Torres supplied several of the firearms sold by Melissa Torres. Donovan Torres and Johnny Torres also sold the undercover ATF agent several firearms.

Melissa Torres and Sally Evans are the final defendants sentenced in this case. Three co-defendants have already been sentenced in this case – Jorge Magana, Johnny Torres, and Donovan Torres. On October 8, 2015, Jorge Magana was sentenced to eight years and one month in prison. On March 26, 2015, Johnny Torres was sentenced to two years in prison. On April 9, 2015, Donovan Torres was sentenced to 10 months in prison.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Stockton Police Department. Assistant United States Attorney Christiaan Highsmith prosecuted the case.

SACRAMENTO, Calif. — Helaman Hansen, 63, of Elk Grove, was arrested today after a federal grand jury returned a 13-count indictment charging him with conspiracy to commit mail fraud and wire fraud, 11 counts of mail fraud, and one count of wire fraud for operating a fraudulent adult-adoption program that targeted undocumented aliens, United States Attorney Benjamin B. Wagner announced.

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

According to the indictment, although some victims completed the adoption stage of the “Migration Program,” not one person obtained citizenship. As early as October 2012, Hansen had been informed by the U.S. Citizenship and Immigration Services that aliens adopted after their sixteenth birthdays could not obtain citizenship in the manner Hansen was promoting. Despite that notification, Hansen and his co-conspirators induced approximately 500 victims to pay more than $500,000 to join the fraudulent program.

“The indictment returned today alleges a particularly predatory and manipulative type of fraud that takes advantage of the hopes and dreams of undocumented immigrants to extract fees based on false promises,” stated U.S. Attorney Wagner. “The adoption of adult aliens is not a legitimate path to U.S. citizenship. While the charges against this defendant are only allegations at this point, no one should pay fees to anyone making false promises of citizenship through adult adoption.”

“This alleged crime victimized vulnerable, would-be immigrants seeking a legitimate pathway to U.S. citizenship. The victims trusted an individual who misrepresented the success of adult adoption in such matters,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento field office. “The Federal Bureau of Investigation is committed to work with its law enforcement partners to investigate and disrupt fraudulent schemes that exploit vulnerable people for financial gain.”

“It is very unfortunate that some in our communities would choose to misrepresent the American immigration system to deceive and hurt those who are trying only to make a better life for themselves and their families,” said Ryan L. Spradlin, special agent in charge for HSI San Francisco. “It is our entrusted duty to hold these criminals accountable for their actions – and so we shall.”

This case is the product of an investigation by the Federal Bureau of Investigation and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney André M. Espinosa is prosecuting the case.

If convicted, Hansen 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Victims are encouraged to call the FBI at 916-977-2479.

Americans Helping America Chamber of Commerce Promised Citizenship to Members of Its “Migration Program” for a Price

Helaman Hansen, 63, of Elk Grove, California, was arrested today after a federal grand jury returned a 13-count indictment charging him with conspiracy to commit mail fraud and wire fraud, 11 counts of mail fraud and one count of wire fraud for operating a fraudulent adult-adoption program that targeted undocumented aliens, U.S. Attorney Benjamin B. Wagner for the Eastern District of California announced.

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

“The indictment returned today alleges a particularly predatory and manipulative type of fraud that takes advantage of the hopes and dreams of undocumented immigrants to extract fees based on false promises,” said U.S. Attorney Wagner.  “The adoption of adult aliens is not a legitimate path to U.S. citizenship.  While the charges against this defendant are only allegations at this point, no one should pay fees to anyone making false promises of citizenship through adult adoption.”

“It is very unfortunate that some in our communities would choose to misrepresent the American immigration system to deceive and hurt those who are trying only to make a better life for themselves and their families,” said Special Agent in Charge Ryan L. Spradlin for Homeland Security Investigation’s (HSI) San Francisco Field Office. “It is our entrusted duty to hold these criminals accountable for their actions – and so we shall.”

According to the indictment, although some victims completed the adoption stage of the “Migration Program,” not one person obtained citizenship.  As early as October 2012, Hansen had been informed by the U.S. Citizenship and Immigration Services that aliens adopted after their sixteenth birthdays could not obtain citizenship in the manner Hansen was promoting.  Despite that notification, Hansen and his co-conspirators induced approximately 500 victims to pay more than $500,000 to join the fraudulent program.

This case is the product of an investigation by the Federal Bureau of Investigation and the U.S. Immigration and Customs Enforcement’s (ICE) HSI.  Assistant U.S. Attorney André M. Espinosa is prosecuting the case.

If convicted, Hansen 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.  The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Victims are encouraged to call the FBI at 916-977-2479.

SACRAMENTO, Calif. —John Steven Keplinger, 56, of Stockton, was sentenced today by United States District Judge Kimberly J. Mueller to two years and three months in prison and a $100,000 fine for mail fraud in connection with an auto engine scam, United States Attorney Benjamin B. Wagner announced.

On September 23, 2015, Keplinger pleaded guilty. The total estimated loss from the fraud is up to $470,000. A hearing for the final determination of restitution for the fraud victims is scheduled for March 30, 2016.

According to court documents, from 2010 to 2014, Keplinger carried out a fraud scheme by purporting to sell used auto engines from Japan, but failing to provide customers what he promised. Over 300 paying customers across 44 states and the District of Columbia were defrauded. Keplinger used three companies and websites to carry out the fraud scheme: Rising Sun Engines Inc. (www.risingsunengines.com), Shop 4 Engines LP (shop‑4‑engines.com), and Your Parts Manager (yourpartsmanager.com). Most of the time, Keplinger’s customers paid by check sent via UPS. After Keplinger accepted payment, he either sent no engine at all or sent the customer a defective engine obtained in the United States, often from a junkyard. United States Customs and Border Protection records indicate that Keplinger had stopped importing engines in 2007.

In August 2013, Keplinger faced legal action from the San Joaquin County District Attorney’s Office and he was ordered to stop conducting an auto parts sales business of any kind and to cease using any website to conduct such a business. Instead, Keplinger continued the fraud scheme well into 2014.

“John Keplinger defrauded hundreds of financially challenged individuals who struggled to afford engines to keep their cars running. He leveraged the Internet to victimize people across the United States,” said Assistant Special Agent in Charge Manuel Alvarez of the Federal Bureau of Investigation’s Sacramento field office. “We thank the U.S. Postal Inspection Service for their partnership in this investigation and both the San Joaquin County District Attorney’s Office and California Bureau of Automotive Repair for their assistance with the investigation.”

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

This case was the product of an investigation by the Federal Bureau of Investigation and the United States Postal Inspection Service, with substantial assistance from the San Joaquin County District Attorney’s Office and the California Bureau of Automotive Repair. Assistant United States Attorney Christopher S. Hales prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned a 38-count indictment today against David Guevara-Pimentel, 22, of Fort Drum, New York, formerly of Sacramento, charging him with dealing and manufacturing firearms without a license, illegal possession of a machine gun, possession of an unregistered short-barreled shotgun, possession of a firearm with an obliterated serial number, and distribution of methamphetamine, cocaine, and heroin, United States Attorney Benjamin B. Wagner announced. Guevara-Pimentel was arrested on January 22, 2016, in New York, where he was stationed as a U.S. Army Private.  U.S. Army Criminal Investigation Command made the arrest.

According to court documents, on 19 separate occasions between August 11, 2014, and April 29, 2015, Guevara-Pimentel met with an undercover agent and sold him a variety of firearms, including a short-barreled shotgun, unserialized AR-15-style rifles, and handguns. On many of these occasions, Guevara-Pimentel sold the agent methamphetamine, cocaine, or heroin. Altogether, Guevara-Pimentel sold the undercover agent 49 firearms, many of which lacked a serial number or other identifying markings. On January 22, 2016, Guevara-Pimentel was found to possess a fully automatic machine gun.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Sacramento Police Department, and the Woodland Police Department. Assistant United States Attorney Ross K. Naughton is prosecuting the case.

If convicted, Guevara-Pimentel faces the following possible penalties: a maximum statutory penalty of five years in prison and a $250,000 fine for the charges of dealing firearms without a license and possession of a firearm with an obliterated serial number, 10 years in prison and a $250,000 fine for illegal possession a machine gun, 10 years in prison and a $10,000 fine for possession of an unregistered short-barreled shotgun, 20 years in prison and a $1 million fine for any of the narcotics-distribution charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Christopher Cook, of Bakersfield, agreed to forfeit to the United States approximately 3,804 polymer AR-15 lower receivers manufactured in violation of federal firearms laws, United States Attorney Benjamin B. Wagner announced. AR-15 lower receivers are classified as firearms under federal law.

The AR-15 style rifle is composed of both an upper and lower receiver. The lower receiver contains the trigger control group, hammer and firing mechanism, and contains mounting points for the upper receiver. Federal law classifies AR-15 lower receivers as firearms and, thus, requires that they must be manufactured with serial numbers by a licensed manufacturer, and that they can only be sold by a licensed firearms dealer. In addition, dealers must perform background check on prospective buyers before they can be sold. The unregulated sale of unserialized AR-15 style firearms assembled using similar lower receivers has been a focus of several recent criminal prosecutions in the Eastern District of California.

According to documents filed by the Government in the civil forfeiture case, Christopher Cook manufactured and sold unserialized polymer AR-15 lower receivers online and from his retail store in Bakersfield. Cook also distributed his product to other dealers who sold them at gun shows. Cook’s lower receivers were made of polymer and contained cavities with different color polymer, making it easier for purchasers to mill out the cavities and convert the lower receiver to an operational firearm. Cook holds a dealer’s license and was trained on the laws governing the manufacture and sale of firearms. Cook does not, however, have a manufacturer’s license.

Starting in January 2014, undercover federal agents purchased approximately 33 lower receivers directly from Cook’s retail store, through his company’s online store, or from one of his distributors. Not one of the lower receivers purchased by undercover agents were serialized for later identification, nor did Cook or his distributors initiate background checks. In April 2014, federal agents executed warrants at Cook’s business and personal residence, seizing the 3,804 lower receivers. According to the Government’s complaint, Cook contracted with a Southern California plastics company to manufacture approximately 40,000 of the multi-colored polymer lower receivers. In the stipulation in which he agreed to the forfeiture of the lower receivers, Cook did not admit to the allegations in the Government’s complaint.

“The construction of high-powered firearms with no serial numbers, and the sale of such firearms with no background checks or other regulatory oversight, has become a serious threat to public safety in this area,” said U.S. Attorney Wagner.  “As a result of this agreement, over 3,800 unserialized lower receivers will never hit the streets as components in illegally sold firearms.”

“Targeting the illegal manufacturing and distribution of unfinished lower receivers continues to be a priority for ATF. Keeping these untraceable firearms out of the hands of criminals is paramount to protecting the public,” said ATF Special Agent in Charge Jill A. Snyder.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Kevin C. Khasigian prosecuted the case.

SACRAMENTO, Calif. — John Cal Howe II, 42, of Lakehead, pleaded guilty today to 23 misdemeanor counts in a scheme to obtain thousands of dollars in veterans’ benefits to which he was not entitled, United States Attorney Benjamin B. Wagner announced.

According to court documents, Howe pleaded guilty to one count of theft in connection with a healthcare program, 20 counts of theft of government property, one count of making a fraudulent demand against the United States, and one count of making a fraudulent representation about the receipt of military decorations or medals.

According to the superseding information filed on January 14, 2016, between February 2012 and April 2015, Howe obtained health care benefits from the Veterans Affairs Health Benefits Program. He also obtained fraudulent travel reimbursements from the VA, and applied for a VA pension. He falsely claimed he was a decorated United States Marine Corps veteran and the recipient of three Purple Heart medals, although he had never enlisted or served in the armed forces of the United States.

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

Howe is scheduled to be sentenced on April 25, 2016, by United States Magistrate Judge Edmund F. Brennan. Howe faces a maximum statutory penalty of one year in prison, a $100,000 fine, and a one-year term of supervised release on each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Surjit Toor, 61, of Hilmar, pleaded guilty today to conspiring to commit mail fraud in a scheme that defrauded Foster Farms of nearly $47,000, United States Attorney Benjamin B. Wagner announced.

According to court documents, Surjit Toor was a maintenance manager at the Foster Farms processing plant in Livingston and was responsible for selecting third-party vendors to perform work at the plant. From February 2012 to April 2012, he conspired with his son, Raju Toor, 34, who ran a construction company, to bill Foster Farms for work that the construction company never performed. The falsely billed projects included the construction of an inspection catwalk and the modification of a large metal tank designed to hold ammonia. After fraudulently receiving payment from Foster Farms, Raju Toor transferred the majority of the funds back to his father.

As part of his plea agreement, Surjit Toor agreed to pay $46,979 in restitution to Foster Farms, which he provided to the court today. Raju Toor entered into a deferred prosecution agreement with the United States, which was approved by the court on January 29, 2016. According to the agreement, if Raju Toor does not engage in any fraudulent conduct, does not commit any crime, and the restitution amount is paid by the time of the sentencing of Surjit Toor, then after a 12 month period, the United States will seek dismissal of the charges against Raju Toor in the indictment.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Grant B. Rabenn is prosecuting the case.

Surjit Toor is scheduled to be sentenced by United States District Judge Dale A. Drozd on May 16, 2016, at 10:00 a.m. Surjit Toor faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Juan Pedro Jimenez, 40, of Mexico, was sentenced today to five years in prison for conspiring to manufacture, distribute and possess with intent to distribute, manufacturing, and possess with intent to distribute marijuana in connection with a large-scale cultivation operation on Chowchilla Mountain in Mariposa County in the Sierra National Forest in Mariposa County, United States Attorney Benjamin B. Wagner announced.

According to court documents, Jimenez was found at the cultivation site on public land in July. Agents removed 6,919 marijuana plants from the site and found fertilizer, trash, water lines, and propane tanks. The cultivation activities caused extensive damage to the land and natural resources. Native trees and plants were cut down and steep hillsides were terraced to plant the marijuana. Water was diverted from a nearby creek to irrigate the plants. Jimenez pleaded guilty on November 18, 2015.

This case was the product of an investigation by the U.S. Forest Service and the Mariposa County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.

SACRAMENTO, Calif. —Jeffrey T. Crothers, 50, of Stockton, pleaded guilty today to conspiracy to commit bank fraud, United States Attorney Benjamin B. Wagner announced.

According to court documents, Crothers, while working for National City Mortgage in Stockton, conspired with at least one other person to defraud National City Bank, which funded the mortgages. In 2006, Crothers submitted a loan application that falsely represented that the loan applicant was the actual borrower, that the loan applicant’s monthly income was higher than it actually was, and that the property being purchased was to be the loan applicant’s primary residence when it was not. The loan applicant was selected because of his good credit, but was unable to make the monthly payments for the loan.

Crothers also submitted a letter that contained a false explanation as to why the loan applicant was purchasing the property. The false letter was used to satisfy a condition for the issuance of the loan. National City Bank sustained a loss of approximately $87,000.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys John K. Vincent and Christiaan H. Highsmith are prosecuting the case.

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

FRESNO, Calif. —Kevin Nouthai Yang, 48, of Fresno, pleaded guilty today to conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on property that he owned in Hayfork in the Shasta Trinity National Forest, United States Attorney Benjamin B. Wagner announced.

According to court documents, Yang, who was then a high school teacher’s aide for the Central Unified School District, was found at the Hayfork property during the execution of a federal search warrant. U.S. Forest Service agents had obtained the search warrant after seeing hundreds of large, mature marijuana plants growing on Yang’s property. Yang was in the process of harvesting marijuana and was in possession of 324 pounds of marijuana, 200 marijuana plants, and a firearm. Some of the marijuana grown on Yang’s property had already been distributed to Fresno. In pleading guilty, Yang also agreed to the forfeiture of the property and the seized firearm.

Yang is scheduled for sentencing on May 2, 2016. He faces a maximum prison term of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the U.S. Forest Service and Trinity County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.

SACRAMENTO, Calif. — Today U.S. District Judge Troy L. Nunley sentenced Percy Love III, 34, of Sacramento, to 35 years in prison for five counts of sex trafficking related to multiple victims, United States Attorney Benjamin B. Wagner announced.

On December 23, 2014, after an 11-day trial, a federal jury found Love guilty of three counts of sex trafficking by force and one count of sex trafficking of a minor.

U.S. Attorney Wagner stated: “This defendant forced his will upon weaker people for profit using threats and violence. Percy Love should spend the next several decades reflecting on how his abuse and humiliation of his victims has resulted in a life behind bars. He is a dangerous predator and the sentence imposed today will protect society from him.”

This case was the product of an investigation by the FBI’s Child Exploitation Task Force, a multijurisdictional task force composed of representatives from the FBI and the Sacramento Police Department, with assistance from the Sacramento County District Attorney’s Office. Assistant United States Attorneys Michele Beckwith and Jason Hitt prosecuted the case.

“Percy Love strategically preyed upon vulnerable young women and underage girls, luring them into a cycle of exploitation, brutal violence, and intimidation for his financial benefit. He exhibited complete disregard for the wellbeing of his victims and the laws. Today’s sentence will not erase the physical and emotional scars Love inflicted upon his victims but it will offer them time to heal,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation Sacramento field office. “Our Innocence Lost Task Force, which includes officers from the Sacramento Police Department, is committed to identifying men and women who exploit our community’s most vulnerable adults and children.”

Sacramento Police Chief Sam Somers Jr. stated: “Due to a coordinated effort of various dedicated law enforcement detectives, this predator will no longer have the opportunity to exploit or harm young women in our community. The conviction of Mr. Love sends a strong, clear message that this type of criminal conduct will not be tolerated in our communities.”

Two victims appeared at the sentencing hearing and described the lasting impact that the defendant’s crimes had on their lives. In sentencing the defendant, Judge Nunley described the defendant as a “gorilla pimp” who had attempted to beat the spirit out of his victims and, based on the trial evidence, earned every year that he would serve in prison.

According to evidence produced at trial, Love targeted vulnerable young women and underage girls to work as prostitutes for him since at least 2007. The testimony of witnesses at trial, including the victims, revealed a pattern of conduct where Love used charm to recruit and brute force to control the women and girls who worked for him.

According to court documents, on July 22, 2013, Sacramento police officers were called to a report of domestic violence and found Love asleep in the front seat of a car with a woman, whose sister had called in the report. The woman explained to officers that she was in a “working relationship” with Love. She reported that Love had beaten her many times, and she had bruises and cigarette burns on her hand, arm and stomach. Love was arrested that night for domestic violence and possession of Ecstasy.

On September 12, 2013, a federal grand jury indicted Love, charging him with two counts of sex trafficking by force, fraud, or coercion. After further investigation revealed more victims, a superseding indictment was brought on March 13, 2014. Love has been in custody since his arrest and represented himself during trial.

FRESNO, Calif. — After a two–day trial, a federal jury found John Torres, 28, of Firebaugh, guilty today of one count of enticement of a minor, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Anthony W. Ishii.

According to evidence presented at trial, Torres was the director of the Firebaugh Boys and Girls Club. Torres was supervising a 14 year-old boy who often came to that Boys and Girls Club after school, and who was volunteering at the Boys and Girls Club to complete 120 hours of community service. Torres sent the boy messages over Facebook that offered to shortcut his community-service-hours requirement if the boy would agree to sexual acts with Torres. The boy reported the messages to law enforcement.

This case was the product of an investigation by the Firebaugh Police Department, Fresno County Sheriff’s Office, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Michael Tierney and Vincenza Rabenn prosecuted the case.

Torres is presently in state custody on other charges. Torres is scheduled to be sentenced by Judge Ishii on May 9, 2016. He faces a statutory penalty of no less than 10 years and up to life in prison 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.