Eastern District of California

SACRAMENTO, Calif. — An Antelope couple was sentenced today by Chief United States District Judge Morrison C. England Jr. to 15 years in prison each for four felony counts related to the arson of their former home and home-based business, United States Attorney Benjamin B. Wagner announced.

After a 10-day trial, a jury found Alexander Sakhanskiy, 43, and Larisa Sakhanskiy, 45, guilty of arson to commit another felony, two counts of mail fraud, and arson affecting interstate commerce. Judge England also ordered the defendants to pay nearly $540,000 in restitution to the insurance company that had paid their fraudulent claim.

According to evidence introduced at trial, on May 22, 2010, a gasoline-fueled fire destroyed the Sakhanskiys’ home in Antelope, a single-family residence at 5745 Hawkeye Lane, that was also the business location of “Alex’s Plumbing.” Prior to the fire, the Sakhanskiys removed most of their personal belongings from the house. Firefighters testified that the residential fire sprinkler system and smoke detectors had been deactivated. Although the fire resulted in the total destruction of the house, firefighters were able to prevent the fire from spreading to neighboring homes.

Evidence at trial showed that the Sakhanskiys had set the fire or caused the fire to be set to collect insurance money from Farmers Insurance Group, Mid-Century Insurance Company for hundreds of thousands of dollars of property they claimed was destroyed in the fire. In filing the claim, the defendants falsely claimed that hundreds of thousands of dollars of property was destroyed in the fire, when most of the contents of the house had been removed and hidden before the fire.

“For-profit arsonists like the Sakhanskiys allow their own personal greed to lead them to intentional acts that endanger the lives of themselves, their neighbors, and the first responders who are diverted from the accidental hazards of everyday life,” said U.S. Attorney Wagner. “We are pleased with today’s sentences, which reflect the gravity this offense, and are grateful for the hard work and cooperation of the ATF, the Sacramento Metropolitan Fire District, and the Sacramento County District Attorney’s Office in securing this result.”

“The Sakhanskiys committed arson in an attempt to defraud their insurance company, in turn placing their neighbors, firefighters and first responders in serious danger,” said ATF Special Agent in Charge Jill A. Snyder. “This investigation was a joint effort with our state and local partners.”

John Barsdale, Metro Fire Supervising Fire Investigator stated: “Keeping our communities safe is Metro Fire’s top priority, whether that means rapidly mitigating an emergency or working with our partner agencies to thoroughly investigate a fire scene and put an arsonist behind bars. Metro Fire's investigation team spent several hundred hours investigating this fire and conducting follow up investigations in order to successfully make an arrest and close the case.”

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Sacramento Metropolitan Fire District. The Sacramento County District Attorney’s Office assisted investigators with the initial fire investigation. Assistant U.S. Attorneys Michael D. Anderson and Nirav Desai prosecuted the case.

SACRAMENTO, Calif. — United States District Judge Kimberly J. Mueller sentenced Manuel Ruiz, 47, of Sacramento, to 18 months in prison for making false claims for tax refunds on federal income tax returns, United States Attorney Benjamin B. Wagner announced. Ruiz pleaded guilty on May 26, 2015.

According to court documents, Ruiz engaged in a scheme to fraudulently prepare tax returns for clients of a tax preparation business he operated from his home. As part of the scheme, Ruiz reported false wages and listed false dependents on his clients’ returns to qualify them for the Earned Income Credit (EIC) when they would not otherwise have been eligible, and to maximize the tax benefits of the EIC beyond the legitimate amounts to which his clients were actually qualified.

In total, between tax years 2009 and 2011, Ruiz made false claims on more than 180 returns, including returns that he filed on his own behalf and on behalf of others, which resulted in over $650,000 in fraudulent refunds paid out by the IRS. During that period, Ruiz directed more than $460,000 in tax refunds from the false claims into bank accounts he controlled. After payments to clients, Ruiz retained at least $192,000 from the false claims.

This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorneys Sherry D. Hartel Haus and André M. Espinosa prosecuted the case.

SACRAMENTO, Calif. — Pablo Barreto-Cruz, 39, of Mexico, was sentenced today by United States District Judge John A. Mendez to five years and three months in prison and ordered to pay $22,800 in restitution for cultivating marijuana on public land and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.

According to court documents, between March 2015 and May 2015, Barreto-Cruz grew 2,998 marijuana plants in the Mendocino National Forest. The marijuana cultivation operation caused significant harm to the habitat and water quality of the National Forest.. Following Barreto-Cruz’s arrest on May 12, 2015, authorities searched the marijuana cultivation site and discovered approximately 1,000 pounds of irrigation pipe, approximately 1,000 pounds of camp debris, and several fertilizers and pesticides, including the highly toxic pesticide Carbofuran, which is dangerous to both humans and animals. The U.S. Forest Service estimates that the marijuana cultivation site diverted approximately 18,000 gallons of water per day.

This case was the product of an investigation by the United States Forest Service, the Glenn County Sheriff’s Office and the California Department of Fish and Wildlife. Assistant United States Attorney Christiaan Highsmith prosecuted the case.

SACRAMENTO, Calif. — The final defendant in a shoplifting ring that stole over $2.5 million in retail goods and resold them on eBay was sentenced today to three years in prison, United States Attorney Benjamin B. Wagner announced.

Jason Nathaniel Reed, 36, of Aspen, Colorado, previously of Vacaville, California, is the seventh defendant sentenced to prison in this case. Jason Schroeder, 36, of Sacramento, was previously sentenced to seven years in prison, Kirk Arthell Sanderson, 37, of Walnut Creek, was previously sentenced to four years in prison; John Judah Young, 34, of Sacramento, was sentence to two and a half years in prison; and David Reed, 29, of Vacaville, was sentenced to one year in prison. Two others, Andrea Lynn Turner, 34, of Roseville, and Joshua Roy Payne, 30, of Vacaville, were each sentenced to two months in prison.

On June 16, 2015, Schroeder pleaded guilty to one count of mail fraud. According to the plea agreement, in October 2012, a sporting goods company with retail stores in Sacramento called the FBI stating that an eBay account was listing items for sale it suspected were stolen. Follow-up investigation revealed that the account was controlled by co-defendant Schroeder using co-defendant Young’s name, and since 2009, it listed more than 17,000 items for sale, including sporting goods, household items, recreational equipment and pet care products. Most of the items were listed as new or with tags. Virtually all of the items sold on the account were stolen by Reed or others, and were sold at a discount to buyers across the country.

According to the plea agreement, Jason Reed and Jason Schroeder took a road trip across the country to Miami to attend the Super Bowl. On that trip, Schroeder and Reed were stealing items on a daily basis, listing the items for sale on eBay in the evenings, and shipping the items out via FedEx.

Wiretaps and surveillance also revealed the specific roles of other members of the conspiracy. According to court documents, David Reed assisted Schroeder with the packaging and shipment of the stolen merchandise. Sanderson assisted in moving items away from Schroeder’s residence when he learned of the federal investigation. Turner and Payne provided false statements to federal agents upon being interviewed regarding their assistance to Schroeder.

This case was the product of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, and the United States Postal Inspection Service. Assistant United States Attorneys Jared C. Dolan and Jeremey J. Kelley are prosecuting the case.

FRESNO, Calif. — On Monday, February 1, 2016, after a seven-day trial, a federal jury found Joaquin Cuenca, 38, of San Diego, guilty of three counts of wire fraud in a scheme to fraudulently obtain bonuses in a recruitment program for the California National Guard, United States Attorney Benjamin B. Wagner announced.

According to evidence produced at trial, Cuenca was a full-time recruiter for the California National Guard in Fresno and defrauded a military recruiting program out of thousands of dollars. The program, the Guard Recruiting Assistance Program (G-RAP), offered a financial incentive to members of the National Guard and others (called Recruiting Assistants, or RAs) who nominated new soldiers. If an RA referred a potential Guard member to a recruiting office and that person ultimately enlisted, the RA was typically eligible to receive $1,000 when a nominee enlisted and $1,000 more when the nominee left for basic training. Because the point of the program was to encourage other soldiers to join in the recruiting effort, G‑RAP incentives were not available for soldiers employed by the Guard as recruiters. Ultimately, G-RAP was discontinued following the discovery of widespread fraud.

According to court documents and evidence presented at trial, Cuenca, was a recruiter and not eligible for bonuses through G-Rap. However, he fed information about new recruits to soldiers who were eligible for G-RAP. Those soldiers (or Cuenca himself) then would enter the information about the new solder online and claim a bonus even though the RA had not in fact referred the new soldier at all. Cuenca would often receive a portion of the bonuses.

“Cuenca joins the ranks of others who have been brought to justice for defrauding G‑RAP and the Army National Guard,” said U.S. Attorney Wagner. “Cuenca and his co-schemers discovered a natural flaw in the program and exploited it. The U.S. Attorney’s Office will continue to uncover and prosecute fraud and abuse of taxpayer money.”

“Joaquin Cuenca's greed and criminal activity permanently tarnished his military career and disrespected the sacrifice of the many men and women who serve our country with honor,” said FBI Special Agent in Charge Monica Miller of the Federal Bureau of Investigation Sacramento field office. “We thank Army Criminal Investigative Command for their continued partnership, ensuring criminals face justice when they allow greed to eclipse their duty to fellow serve members and the American people.”

Chris Hendrickson, Special Agent in Charge of the Western Field Office, Defense Criminal Investigative Service, said: “Corruption strikes at the heart of good government and erodes public trust. The investigation of these offenses is a top priority for the DCIS, its investigative partners, and the U.S. Attorney's Office. Today's verdict demonstrates that there is zero tolerance for this type of shameful misconduct.”

"When individuals fail to live up to the values of the U.S. Armed Forces, they should be held accountable," said Maj. Gen. David S. Baldwin, California's Adjutant General. "We applaud the U.S. Attorney's Office and the law enforcement community in helping us keep the Cal Guard a force of which our communities can be proud."

Cuenca is the second person to be convicted in this district in the last 10 days in connection with fraud with G-RAP. On January 22, 2016, Richard Sihner, 54, of Elk Grove was convicted by a jury in Sacramento of 18 counts of wire fraud and making false statements.

Cuenca is scheduled to be sentenced by United States District Judge Dale A. Drozd on May 16, 2016. Cuenca faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of wire fraud. 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 ongoing investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorney Michael Tierney and Department of Justice Trial Attorney Alexis Loeb are prosecuting the case.

Other National Guard members and recruiters have been charged in similar recruiting‑fraud schemes in the Eastern District of California. The following defendants have pleaded guilty and await sentencing.

• 2:14-cr-153 TLN — Brian Kaps, 42, of Chico, pleaded guilty on November 21, 2014, to one count of wire fraud. Sentencing is set for February 4, 2016.

• 2:14-cr-152 TLN — Sarah Nattress, 28, of Paradise, pleaded guilty on October 23, 2014, to one count of wire fraud. A status conference for sentencing is set for February 4, 2016.

• 1:14-cr-107 DAD — Leonardo Pesta, 47, of Mountain View, pleaded guilty on July 27, 2015, to one count of wire fraud. Sentencing is set for April 26, 2016.

• 1:14-cr-108-LJO — Nicholas Huerta, 33, of Fresno, pleaded guilty on September 14, 2015 to one count of wire fraud. Sentencing is set for November 14, 2016.

• 2:14-cr-151 JAM — Richard C. Sihner, 54, of Elk Grove, was found guilty of 18 counts of wire fraud and one count of making false statements. Sentencing is set for May 3, 2016.

  Charges are pending against the following (the charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt):

• 2:15-cr-005 TLN — Steel A. Davis, 43, of Paradise, was charged with eight counts of wire fraud on January 8, 2015. A status conference is set for February 4, 2016.

• 1:14-cr-109 LJO — Jimmy Maldonado, 35, a recruiter, and his wife Mayra Garcia Maldonado, 29, a recruiting assistant, both of Fresno, are allegedly responsible for causing $40,000 in fraudulent bonuses. Trial is scheduled for May 3, 2016.

FRESNO, Calif. — Jose Javier Rosas, aka Jose Javier Rosas Jimenez 62, of Bakersfield, was sentenced today to 18 months in prison for aiming the beam of a high-powered laser pointer at Air-1, a Kern County Sheriff’s helicopter, United States Attorney Benjamin B. Wagner announced.

The sentence follows Rosas’s guilty last fall. According to court documents, Rosas struck and tracked Air-1 with a green laser pointer during the evening hours. As a result, the pilot experienced glare, flash blindness, significant loss of night vision, watering eyes, and eye pain and was forced to divert attention from assisting in the search for a robbery suspect.

“Pointing a laser at any aircraft is a reckless action which has potential to cause a catastrophic incident affecting both the air crew and community.  In this case, the airmen were impaired by the laser but were able to safely divert from the planned operation,” said Special Agent in Charge Monica M. Miller of the FBI Sacramento field office. “Due to the risk to public safety, anyone who witnesses an individual shining a laser at aircraft or any vehicle should immediately report the activity to law enforcement to protect the safety of the community.”

“As this sentence makes clear, Mr. Rosas’ actions put the life of this aircraft’s pilot and the safety of the general public in peril,” said Ryan Spradlin, special agent in charge for HSI San Francisco, which oversees HSI’s enforcement efforts throughout northern California. “In addition to the jail term, this defendant will face removal to his native Mexico upon completion of his prison time. HSI will continue to use its resources and unique enforcement authorities to protect our communities from those who engage in criminal activity that endangers our citizens.”

Reports of laser attacks on aircraft have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. Last year, there were 7,702 laser strikes, or 21.16 laser incidents per day, reported in the United States. In the Eastern District of California, which encompasses 34 counties, including Kern County, in the eastern portion of California, there were 214 reported incidents. So far this year, the Federal Aviation Administration reports over 24 laser incidents per day nationwide. Aviators, such as helicopter pilots, are particularly vulnerable to laser illuminations when conducting low-level flight operations at night.

This case was the product of an investigation by the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Kern County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar prosecuted this case.

SACRAMENTO, Calif. — Lee Loomis, 58, of Granite Bay, pleaded guilty today to wire fraud, United States Attorney Benjamin B. Wagner announced.

According to court documents, Loomis was president of a company called Loomis Wealth Solutions. Through seminars and face-to-face meetings, he induced individuals to invest money in the Naras Funds, which he claimed were liquid, savings account-like investments that yielded a 12 percent annual return. He also claimed the investment was secured by a third party that was using the money to make loans secured by residential properties.

In fact, investors in the Naras Funds lost their investments. In his plea agreement, Loomis admitted that the funds were not used as was promised to investors. Instead, Loomis and his co-defendants used the funds to pay for ongoing operations and to pay previous investors. Loomis took in more than $10 million in investor funds, defrauding more than 50 individuals. At the time law enforcement executed search warrants at the business, only $4,313 was left in investor accounts.

 “This guilty plea brings to an end Lee Loomis’s long and destructive scheme to defraud investors,” said U.S. Attorney Wagner. “While it is doubtful that investor victims will ever be made whole, Loomis has been brought to justice, and he will never again be in a position to cause financial harm to others.”

This case is the product of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the United States Securities and Exchange Commission, and the California Bureau of Real Estate. Assistant United States Attorneys Paul Hemesath and Jared Dolan are prosecuting the case.

Loomis has been in custody since September 14, 2012. He will remain in custody pending sentencing. Co-defendants Dawn C. Powers, 45, of Lincoln, John Hagener, 79, of Granite Bay, and Joseph Gekko, 47, of Yorba Linda, have previously pleaded guilty and are awaiting sentencing. Co-defendants Michael Llamas, 31, of Tracy, and Peter Woodard, 47, of Ventura, are also named co-defendants in the mortgage fraud allegations in the indictment. A trial against Llamas and Woodard is set for September 12, 2016. The charges against them are allegations: the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.

Loomis is scheduled to be sentenced by United States District Judge John A. Mendez on May 10, 2016. Loomis 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. — A federal grand jury returned an 11-count indictment today against Antonio Castellanos, 32, of Whittier; Jose Reyes-Pineda, 43, of Anaheim; and Modesto residents Genaro Serrato-Calles, 45; Antonio Valencia-Hernandez, 60; Lorena Mariscal Velasquez, 46; Nora Lizbet Garcia, 29; and Melissa Velasquez, 25, charging them in a methamphetamine and heroin trafficking conspiracy, U.S. Attorney Benjamin B. Wagner announced.

According to court documents, between June 2014 and January 2016, the defendants conspired to distribute methamphetamine and heroin brought from Southern California to Stanislaus County. On April 8, 2015, agents seized six kilograms of methamphetamine obtained from Reyes-Pineda, transported by Valencia-Hernandez and Lorena Velasquez, and intended for Serrato-Calles. In addition, agents seized 16 kilograms of methamphetamine in June 15, 2015 that had been transported to Stanislaus County from Southern California as arranged by Castellanos and Serrato-Calles.

This case is the product of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Stanislaus Drug Enforcement Agency, the Central Valley HIDTA, the San Joaquin METRO Task Force, and the Orange County Sheriff’s Special Investigations Bureau. Assistant U.S. Attorney Kathleen A. Servatius is prosecuting the case.

All defendants have been arrested. Castellanos, Reyes-Pineda, Lorena Velasquez, Melissa Velasquez, and Garcia have been ordered released pending trial. All defendants are scheduled to appear in court before U.S. Magistrate Judge Stanley A. Boone for arraignment on Friday, January 29, 2016.

If convicted, Castellanos, Serrato-Calles, and Valencia-Hernandez face a sentence of 10 years to life in prison and a $10 million fine. If convicted, the remaining 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

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. — Manuel Garcia Navarro, 33, of Fresno, was sentenced today by United States District Judge Kimberly J. Mueller to two years in prison for conspiring to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, Navarro was a methamphetamine courier. On June 29, 2013, Navarro was stopped by the California Highway Patrol for a vehicle code violation. A subsequent search of Navarro’s vehicle resulted in the seizure of four pounds of methamphetamine concealed within the airbag compartment.

Federico Aguilar was the head of this drug trafficking organization that was responsible for distributing pound-quantities of methamphetamine on a weekly basis in Butte County. Over a four-month period in 2013, Aguilar’s organization distributed over 49 pounds of methamphetamine. Aguilar was arrested at his residence in August 2013, where law enforcement officers found 15 cellphones, five guns, and $50,000 in cash concealed within a bathroom air vent.

Navarro is the tenth and final defendant to be sentenced in this case. Nine other defendants have been sentenced this year:

1. On October 14, 2015, Federico Aguilar was sentenced to 17 and a half years in prison.

2. On September 30, 2015, Rafael Medina was sentenced to six years and eight months in prison.

3. On August 19, 2015, David Eleazar was sentenced to six years and eight months in prison.

4. On July 8, 2015, Neng Xiong was sentenced to four years and five months in prison.

5. On February 25, 2015, Alejandro Corona was sentenced to three years and six months in prison.

6. On October 28, 2015, Rickey Xiong was sentenced to three years and six months in prison.

7. On March 25, 2015, Jaime Dominguez was sentenced to two years in prison.

8. On May 20, 2015, Sou Xiong was sentenced to two years in prison.

9. On June 10, 2015, Cindy Hunter was sentenced to one year of supervised release.

   This case was the product of an investigation by the Drug Enforcement Administration, the Butte Interagency Narcotics Task Force (BINTF), the Butte County Sheriff’s Office, the Butte County Probation Department, the Butte County District Attorney’s Office, the California Highway Patrol, the California Department of Justice Bureau of Gambling Control, the Chico Police Department, and the United States Marshals Service. Assistant United States Attorney Justin Lee prosecuted the case.

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

SACRAMENTO, Calif. — United States District Judge Kimberly J. Mueller sentenced Paul Ross Pacini, 46, of Rocklin, to five years in prison, to be followed by 15 years of supervised release, for receiving child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, an undercover investigation revealed that from June 2013 through August 2013, Pacini used a peer-to-peer file-sharing network to make available more than 300 files of pictures and videos depicting the sexual exploitation of children. A search warrant executed at Pacini’s home revealed that his computers contained more than 2,500 images and more than 900 videos depicting the sexual abuse of children, and that at various times, many of those videos were made available to others over the Internet. The images and videos Pacini possessed involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of prepubescent minors under 12 years old.

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

SAN JOSE, Calif. — Quan Pham Howard, 53, of Saratoga, California, a former supervisory postal inspector who worked at the San Jose Processing and Distribution Center was sentenced today by U.S. District Judge Lucy H. Koh to three years in prison for possession of stolen U.S. mail and possession with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced.

At sentencing, Judge Koh noted that as a sworn federal officer, Howard abused his position of trust, and that he obstructed justice when he interfered with the investigation into his criminal activity by attempting to influence or tamper with witnesses. Judge Koh set a hearing to decide restitution and any fine for March 16, 2016. She ordered Howard to begin serving his sentence on March 17, 2016.

According to court documents, on June 26, 2014, following an investigation and the execution of a search warrant at his house and office, Howard was arrested and charged with theft of mail. He pleaded guilty to the charges on July 22, 2015.

According to the plea agreement, between late 2010 and June 25, 2014, Howard unlawfully opened and stole United States mail that contained quantities of prescription drugs. He also possessed a variety of items that had been stolen from the mail distribution center including: a gun scope, a silver bar, jewelry, coins, gift cards, a gun silencer, a Rolex watch and other items. Howard also possessed over eight kilograms of marijuana with the intent to distribute. During this period, to conceal his theft and trafficking, Howard falsified postal records and disabled a surveillance camera at the distribution center.

After Howard was arrested and released on bond, he attempted to obstruct justice. On July 2, 2014, Howard contacted a former USPS employee whom he had supervised and attempted to influence the employee’s testimony with instructions regarding what to remember about Howard's prior supervision. In addition, Howard repeatedly contacted one of his former supervisors in an attempt to obtain her support for his false explanation of his possession of stolen property.

U.S. Attorney Wagner stated: “We are grateful for the assistance of the U.S. Postal Inspection Service in securing justice in this case. Mr. Howard violated the law, victimized postal customers, and endangered the critical trust between law enforcement and the community. We will continue our efforts to nurture that trust by working with our law enforcement partners to vigorously investigate and prosecute such cases.”

“When the USPS OIG receives these types of complaints, we take them very seriously and investigate them to their fullest. This sentencing serves as a deterrent to employees who think this type of behavior is acceptable and may be willing to compromise the integrity of the mail or their responsibility as a Postal Service employee,” says Special Agent in Charge Curtis Lembke.

U.S. Postal Inspection Service Special Agent in Charge Rafael E. Nunez stated: “It is disheartening to see a Postal Inspector accused and convicted of violating laws they were sworn to uphold, but it is reassuring that justice has been done today. Howard's actions should not diminish the fine work the men and women of the U.S. Postal Inspection Service do every day. We will continue to work with honor and integrity in a steadfast effort to maintain the safety and security of the U.S. Mail.”

This case was the product of an investigation by the United States Postal Service Office of Inspector General. Assistant United States Attorney Michelle Rodriguez, of the Eastern District of California, is prosecuting the case. Because Howard was a postal inspector who investigated cases in the Northern District of California, the U.S. Attorney’s Office for the Northern District was recused from this case. The case was heard in the U.S. District Court in San Jose.

FRESNO, Calif. — Jose Nicolas Olivas Zazueta, 35, of Fresno, was sentenced today by United States District Judge Lawrence J. O'Neill to five years in prison for possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, on August 2, 2014, Zazueta and co-defendant Jorge Hernandez, 35, of Fresno, brought six pounds of methamphetamine to a parking lot on east Kings Canyon Road, in Fresno, where they were arrested and the methamphetamine was seized. Hernandez was sentenced to five years by Judge O’Neill on January 19, 2016.

This case was the product of an investigation by the United States Drug Enforcement Administration and the Federal Bureau of Investigation. Assistant United States Attorney Michael S. Frye is prosecuting the case.

FRESNO, Calif. — Miguel Angel Gomez Rebolledo, 35, of San Jose, pleaded guilty today before U.S. District Judge Lawrence J. O’Neill to conspiracy to commit criminal copyright infringement and related crimes, United States Attorney Benjamin B. Wagner announced.

Gomez Rebolledo was the last defendant to plead guilty in connection with an extensive counterfeit media scheme involving a San Jose-based warehouse and counterfeit media distribution and resale activity throughout the Central Valley of California.

According to court documents, on March 13, 2015, warehouse and office space used by the defendants was found to contain more than 120,000 counterfeit music CDs and movie DVDs. The counterfeit materials included movie titles that were in theatrical release and not yet available for legitimate sale on DVD. The counterfeit CDs and DVDs were distributed by the defendants for resale in Atwater, Modesto, Stockton, Turlock, and throughout California. Gomez Rebolledo pleaded guilty to his role in the scheme, which involved manufacturing counterfeit motion picture DVDs for distribution and resale at the office space used by Gomez Rebelledo and his co-conspirators.

The status of the remaining co-defendants in the case is as follows:

• On December 7, 2015, co-defendants Efrain Lozada Rosas, and Victor Flores Fuentes, of San Jose, and Jesus Cuevas Lopez, of Southern California, pleaded guilty to conspiracy to commit criminal copyright infringement and related crimes. They will be sentenced on April 11, 2016.

• On December 14, 2015, co-defendant Antonio Morales, of San Jose, pleaded guilty to conspiracy to commit criminal copyright infringement and related crimes. He will be sentenced on March 28, 2016.

• On December 7, 2015, co-defendant Edgar Hipatl Rodriguez, of San Jose, was sentenced by Judge O’Neill to 27 months in prison for conspiracy to commit criminal copyright infringement and related crimes.

This case is the product of an investigation by the Sacramento Intellectual Property Rights Task Force composed of the Federal Bureau of Investigation and the Sacramento County Sheriff’s Office. Assistant U.S. Attorney Henry Z. Carbajal III is prosecuting the case.

The defendants pending sentencing face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Denna Chambers, 33, of Woodland, and Starsheka Mixon, 32, of Pinole, have been arrested for a scheme to submit false claims to the government for fraudulent tax refunds, United States Attorney Benjamin B. Wagner announced.

On Thursday, January 14, 2016, a federal grand jury returned a 16-count indictment charging Chambers and Mixon with conspiracy to submit false claims and submitting false, fictitious or fraudulent claims.

According to court documents, between January 2011 and June 2013, Chambers and Mixon obtained the names and personal identifying information of other persons and used this information to file false federal income tax returns. The tax returns included false statements about the taxpayers’ income, dependents, occupations, and entitlement to tax credits. In all, approximately 178 false income tax returns requesting more than $900,000 in fraudulent refunds were submitted as part of this scheme. Mixon is also charged with submitting a false claim for a tax refund in connection with her personal tax return.

This case is the product of an investigation by the IRS Criminal Investigation. Assistant United States Attorney Shelley D. Weger is prosecuting the case.

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

SACRAMENTO, Calif. — After a seven-day trial, a federal jury found Richard C. Sihner, 54, of Elk Grove, guilty of 18 counts of wire fraud and one count of false statements to a federal agent for a scheme to fraudulently obtain bonuses in a recruitment program for the California National Guard, United States Attorney Benjamin B. Wagner announced.

Sihner is a retired member of the California National Guard, and participated in the Guard Recruiter Assistant Program (G-RAP). The United States Army contracted with Document and Packaging Broker Inc. (DOCUPAK) to administer G-RAP. Under G-RAP, members of the California National Guard served as recruiting assistants (RA). If an RA referred a potential Guard member to a recruiting office and that person ultimately enlisted, the RA was eligible to receive monetary compensation disbursed by DOCUPAK. RAs would typically receive a $1,000 payment when a nominee enlisted and a second $1,000 payment when the nominee left for boot camp. Ultimately, the G-RAP program was discontinued following the discovery of widespread fraud. People who walked into recruiting offices entirely on their own initiative, without having been referred by an RA, were claimed by corrupt RAs in DOCUPAK’s system, often with the assistance of corrupt recruiters.

According to court documents and evidence produced at trial, from December 27, 2007 to April 16, 2010, Sihner was an RA in the G-RAP program. A recruiter gave him information about new recruits so that Sihner could falsely claim to have referred them. Sihner made false claims and wrote elaborate falsehoods in the notes section of the DOCUPAK online portal indicating that he had referred the recruits. In fact, the recruits had made contact with the Guard to discuss potential enlistment for reasons entirely unrelated to Sihner. Sihner was paid $95,000 in compensation for purportedly referring 51 soldiers to enlist. Of the 39 recruits federal agents contacted prior to indictment, none had been referred to the Guard by Sihner. When confronted, Sihner lied to federal law enforcement agents investigating the fraud by repeatedly claiming that he had personally referred all of the new soldiers and that he had taken them to the recruiting office to introduce them.

“Sihner and others who corrupted the G-RAP program were parasites on the Army National Guard, sucking dollars from the services that defend this country,” said U.S. Attorney Wagner. “Richard Sihner was the latest to be brought to justice in this district, but he won’t be the last.”

“When Richard Sihner decided to cheat the California Army National Guard by abusing the G-RAP recruitment incentive program, he threw away the honor earned during his entire career in uniform,” said FBI Special Agent in Charge Monica Miller of the Federal Bureau of Investigation's Sacramento field office. “Men and women in the armed services sacrifice much to protect our country. The FBI and our partners at Army Criminal Investigative Command will continue to honor such sacrifice by stopping criminals like Sihner, who place self-enrichment above the virtues of service and personal integrity.”

Special Agent in Charge Chris Hendrickson of the Defense Criminal Investigative Service stated, “While the vast majority of military service members are honest in their work and passionately committed to the mission of protecting this nation, some choose to abuse public trust. Public corruption is always unacceptable and the Defense Criminal Investigative Service will use all tools available to protect the public's trust and taxpayer interest.”

“Mr. Sihner's guilty verdict is further proof we will hold soldiers accountable should they partake in criminal behavior,” said Maj. Gen. David S. Baldwin, Adjutant General for the California National Guard. “I'd like to express our appreciation for the United States Attorney's painstaking efforts to account for these crimes.”

Sihner is scheduled to be sentenced by United States District Judge John A. Mendez on May 3, 2016. Sihner faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of wire fraud, and a maximum sentence of five years in prison and a $250,000 fine for false statements. 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 ongoing investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorneys Matthew G. Morris and Katherine T. Lydon are prosecuting the case.

Other National Guard members and recruiters have been charged in similar recruiting‑fraud schemes in the Eastern District of California. The following defendants have pleaded guilty and await sentencing.

• 2:14-cr-153 TLN — Brian Kaps, 42, of Chico, pleaded guilty on November 21, 2014, to one count of wire fraud. Sentencing is set for January 28, 2016.

• 2:14-cr-152 TLN — Sarah Nattress, 28, of Paradise, pleaded guilty on October 23, 2014, to one count of wire fraud. A status conference for sentencing is set for January 28, 2016.

• 1:14-cr-107 DAD — Leonardo Pesta, 47, of Mountain View, pleaded guilty on July 27, 2015, to one count of wire fraud. Sentencing is set for April 26, 2016.

• 1:14-cr-108-LJO — Nicholas Huerta, 33, of Fresno, pleaded guilty on September 14, 2015 to one count of wire fraud. Sentencing is set for January 26, 2016.

  Charges are pending against the following (the charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt):

• 1:14-cr-106 DAD — Joaquin Cuenca, 38, of San Diego, was a recruiter and allegedly is responsible for causing $30,000 in fraudulent bonuses. The trial in that case is currently ongoing in the U.S. courthouse in Fresno. The next date of the trial is January 26, 2016.

• 2:15-cr-005 TLN — Steel A. Davis, 43, of Paradise, was charged with eight counts of wire fraud on January 8, 2015. A status conference is set for January 28, 2016.

• 1:14-cr-109 LJO — Jimmy Maldonado, 35, a recruiter, and his wife Mayra Garcia Maldonado, 29, a recruiting assistant, both of Fresno, are allegedly responsible for causing $40,000 in fraudulent bonuses. Trial is scheduled for May 3, 2016.

FRESNO, Calif. — After a three–day trial, a federal jury found Shane Paul Young, 45, of Fresno, guilty today of receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Dale A. Drozd.

According to evidence presented at trial, federal investigators in Fresno received a lead regarding an email address in Fresno that was distributing child pornography. Investigators determined that Young was the user of that Fresno email account. The evidence showed that Young sent and received hundreds of videos and images containing child pornography over the Internet with users across Europe and North America.

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno County Sheriff’s Department, the Kings County District Attorney’s Office, and the Fresno Internet Crimes Against Children (ICAC) task force. ICAC is a federally and state-funded task force with agents from federal, state, and local agencies. The Fresno ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorneys Mark J. McKeon and Jeffrey A. Spivak are prosecuting the case.

“Dark and twisted predators who prey on the young and innocent will be identified and brought to justice,” said Ryan L. Spradlin, special agent in charge of HSI San Francisco. “Together with our law enforcement partners, we were able to apprehend this criminal and provide a safer community for our children.”

Young is scheduled to be sentenced by Judge Drozd on April 11, 2016. Young faces a maximum statutory penalty of 40 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

FRESNO, Calif. — Lorita Marie Rocha, 35, of Fresno, and Nereida Rodriguez, 28, of Firebaugh, were indicted in connection with a long-term tax refund fraud scheme that involved the use of stolen identities and false and fraudulent tax returns, United States Attorney Benjamin B. Wagner announced today.

On January 14, 2016, a federal grand jury returned a five-count indictment against Rocha and Rodriguez charging them with conspiracy to commit wire fraud and four counts of wire fraud. A status conference was set for February 29, 2016, before Magistrate Judge Sheila K. Oberto.

According to court documents, between February 2008 and January 2012, Rocha and Rodriguez conspired to obtain, and help others obtain, payment of false and fraudulent claims for refunds from the IRS. Through her employment by the IRS as a seasonal tax examiner, Rocha obtained the personal information of numerous individuals. Rocha and Rodriguez misappropriated the personal information of more than two dozen individuals and prepared and submitted fraudulent tax returns, making fraudulent claims for refunds in excess of $100,000.

This case is the product of an investigation by the Treasury Inspector General for Tax Administration (TIGTA) and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.

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

SACRAMENTO, Calif. — Keri S. Southwood, 21, of Elk Grove, was sentenced today to two years and eight months in prison for bank fraud and aggravated identity theft, United States Attorney Benjamin B. Wagner announced. U.S. District Judge Garland E. Burrell ordered Southwood to pay $12,300 in restitution, which includes $6,526 for repairing U.S. Postal Service mail boxes.

San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated: “We are working closely with the U.S. Attorney’s Office and our partners at the Elk Grove Police Department to arrest and prosecute those responsible for mail theft to protect postal customer’s mail and personal information from theft.”

Elk Grove Police Chief Robert Lehner stated: “We appreciate the working relationship with the Postal Inspector’s Office in this case. These crimes have an enormous impact on a community like ours and it’s important that offenders be held appropriately accountable for their actions. In this case, I don’t know that would have happened without the partnership.”

According to court documents, between October 1, 2014 and February 12, 2015, Southwood and her co-defendants Joseph D. Ryan, 21, and Leonard A. Velasco, 24, both of Elk Grove, participated in a scheme to obtain stolen financial and personal identification information and use such to defraud financial institutions and merchants. Southwood and her co-defendants stole U.S. mail by damaging or destroying mail boxes and neighborhood U.S. Postal Service receptacles. After cataloguing the stolen mail, the defendants targeted certain postal customers in order to return to the mail receptacles to steal the replacement credit or debit cards mailed to the postal customers. The defendants also used information found in the stolen mail to apply for credit cards and had the cards sent to an address they controlled. The defendants used the credit or debit cards, PINs, and victims’ names to get money, goods and services.

According to court documents, Southwood and her co-defendants possessed stolen U.S. mail of over 1,000 victims and over 30 credit cards in victims’ names. As a result of the destruction of postal receptacles, customers suffered the loss of mail and mail services and the Postal Service suffered loss. Southwood pleaded guilty on September 1, 2015.

Co-defendant Ryan is scheduled for trial before Judge Burrell on April 5, 2016. The charges against Ryan are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Co-defendant Velasco pleaded guilty on August 25, 2015, to bank fraud and aggravated identity theft and is scheduled to be sentenced on February 5, 2016. Velasco faces up to 30 years in prison for bank fraud and two consecutive years in prison for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case was the product of an investigation by the United States Postal Inspection Service and the Elk Grove Police Department. Assistant United States Attorney Michelle Rodriguez prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Lino Jimenez, 34, of Vallejo, charging him with possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, on November 13, 2015, Jimenez possessed over five pounds of methamphetamine for sale in a storage locker in Vallejo.

This case is the product of an investigation by the Drug Enforcement Administration and Napa Special Investigations Bureau. Assistant United States Attorney Matthew M. Yelovich is prosecuting the case.

Jimenez is in custody. He is scheduled to be arraigned on January 25, 2016.

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

SACRAMENTO, Calif. — Kay Lee, 27, of Sacramento, pleaded guilty today to conspiracy to commit access device fraud and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.

According to court documents, from July 2014 through April 2015, Lee participated in a scheme that involved at least 500 unauthorized and counterfeit credit cards and debit cards, affecting at least 1,800 victims, and leading to an estimated loss of $186,000. The defendants stole or possessed stolen mail, created or received fraudulent credit and debit cards, and made fraudulent purchases totaling thousands of dollars using the cards at national retailers such as Target in various Sacramento-area locations.

According to the plea agreement, Lee altered one business’s check for over $1,700 and deposited it in her personal checking account, put a hold on a victim’s mail without that person’s permission, took over a victim’s Target store account using another victim’s identity, and proceeded to engage in further unauthorized purchases using that taken-over account. Finally, on one occasion in September 2014, Lee used one victim’s credit card account number to purchase over $1,000 in tires and related services for her car, while presenting a different victim’s identity as the purchaser.

This case is the product of an investigation by the United States Postal Inspection Service. Assistant United States Attorney Matthew M. Yelovich is prosecuting the case.

Lee remains in custody. Charges are pending against four co-defendants and a status conference is set for them on February 25, 2016. The charges against them are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Lee is scheduled to be sentenced by United States District Judge Troy L. Nunley on April 7, 2016. She faces a maximum statutory penalty of five years in prison and a $250,000 fine for the conspiracy count, as well as a mandatory two years in prison, to be served consecutively to any other prison sentence imposed, for the aggravated identity theft count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Today, U.S. Chief District Judge Morrison C. England Jr. sentenced James Stewart Richards, 69, of West Sacramento, to two years in prison for tax evasion, United States Attorney Benjamin B. Wagner announced.

According to court documents, Richards is a member of the California and Hawaii bar organizations. Between 1994 and 2003, Richards owed federal income taxes totaling over $170,000, which he did not pay. Instead, he took steps to evade payment of some or all of the taxes he owed. He filed a false “Offer in Compromise” to the IRS that omitted bank accounts and six rental properties. He used a client trust account to hold his own assets. When alerted by the bank that the IRS was making inquiries about the account, Richards called the bank and asked that the bank provide no records to the IRS. He also withdrew $100,000 from the account in the form of cashier’s checks. Richards purchased a yacht that he registered and titled in a nominee’s name in order to conceal that asset from the IRS. He also made false statements about his assets to a bankruptcy court and to the IRS.

Noting that Richards is an attorney who took three semesters of tax courses in law school, Chief Judge England found that Richards employed a “sophisticated scheme” to hide assets from the IRS. Chief Judge England also noted that all attorneys know client trust accounts cannot be in the manner employed by Richards.

This case was the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Audrey B. Hemesath and Nirav K. Desai prosecuted the case.

FRESNO, Calif. — A federal grand jury returned an indictment today charging Reyes Lopez Magana, 37, of Modesto, with being a felon in possession of a firearm and ammunition, United States Attorney Benjamin B. Wagner announced.

According to the indictment, on July 27, 2015, Magana, a previously convicted felon, was in possession of a Jimenez Arms 9 millimeter handgun that was loaded with 9 millimeter ammunition.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Modesto Police Department. Assistant United States Attorney Daniel Griffin is prosecuting the case.

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

This case 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. — Brent Lee Newbold, 58, of Granite Bay, was sentenced today to four years and three months in prison and ordered to pay more than $2.9 million in restitution for defrauding 13 individuals and a corporate investor, United States Attorney Benjamin B. Wagner announced.

Newbold was the chief executive officer of Holy Cow, a Rocklin-based business that produced a “green” cleaning product, marketed to stores such as Wal‑Mart, ACE Hardware, and Bed, Bath & Beyond. On September 3, 2015, he pleaded guilty to a scheme to defraud investors that ran from October 2007 to January 2010.

In sentencing, U.S. District Judge Morrison C. England Jr. noted that this was a classic “Ponzi scheme” in which Newbold regularly took money from investors and “used it to pay other investors, his wife, and his mortgage.” One victim who spoke at sentencing noted that Newbold was able to gain her trust, but in the end turned out to be “nothing more than a common thief.” Another victim who spoke at sentencing told the court that the financial hardships he suffered at Newbold’s hands played a role in ending his marriage.

“Brent Newbold lied not only to gain the trust of investors; he twisted the truth to use investor money for his personal expenses and conceal his scheme,” said FBI Special Agent in Charge Monica Miller of the Federal Bureau of Investigation's Sacramento field office. “Newbold's lies caused significant personal and financial hardship for his victims. Today's sentencing demonstrates to Newbold and would-be fraudsters that such lies have consequences. By working with partners such as IRS Criminal Investigation, the FBI continues its work to protect the investing public and uphold the integrity of the U.S. financial system.”

“Mr. Newbold raised money from investors through misrepresentations and false promises,” said Michael Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Then, without authorization, he diverted investor funds to himself and others for his own personal benefit. This chain of events led the company into bankruptcy and to Mr. Newbold’s sentence today. Those who line their pockets with profits from these schemes should know they will not go undetected and will be held accountable for their actions.”

According to court documents, Newbold made a variety of misrepresentations to investors about the financial health of the company, including the company’s debt levels and how invested funds would be used. Based on Newbold’s claims, a corporate investor, Spence Enterprises, invested $2 million in Holy Cow.

Between July 2008 and January 2010, Newbold solicited 13 individual investors that were not disclosed to Spence Enterprises. Newbold falsely claimed that he was authorized to act on behalf of Holy Cow; that he owned Holy Cow; that he owned the majority of Holy Cow stock; and that Holy Cow was financially sound, stable and profitable. In some cases, Newbold provided his individual investors with false Holy Cow stock certificates, false Holy Cow purchase order reports, and corporate promissory notes.

In fact, Holy Cow bore a significant amount of debt, and Newbold continued to take additional debt related to Holy Cow. Newbold used investor funds for nonbusiness purposes, diverting it to himself and his wife, paying his mortgage, and paying previous investors. By December 2009, Spence Enterprises put Holy Cow into bankruptcy as a result of the unauthorized and undisclosed debt. The loss amount was over $2.9 million.

This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Michael M. Beckwith prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Willie James McNeal, 59, a prisoner at the Federal Correctional Institution located in Herlong, California, United States Attorney Benjamin B. Wagner announced.

According to the indictment, McNeal assaulted another prisoner who suffered serious bodily injury as a result. 

This case was the product of an investigation by the Federal Bureau of Investigation and Bureau of Prisons. Assistant United States Attorney Amanda Beck is prosecuting the case.

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

FRESNO, Calif. — Martin Calzada, 28, of Los Angeles, was arraigned today in Fresno, charged in connection with a scheme to defraud homeowners facing foreclosure, United States Attorney Benjamin B. Wagner announced.

On December 31, 2015, a federal grand jury returned an indictment against Calzada, charging with conspiracy to commit mail fraud and mail fraud. In court today, Calzada entered a plea of not guilty. His next court date is a status conference and is set for March 21, 2016.

According to court documents, between August 2010 and October 2011, Calzada, and other employees of Star Reliable Mortgage, which had offices in Bakersfield, Visalia, and Salinas, targeted distressed homeowners with a fraudulent “loan elimination” scheme. Star Reliable charged clients an upfront fee — ranging from $2,500 to $4,500 — as well as monthly fees, based on false promises that the clients could own their homes “free and clear” as a result of Star Reliable’s services. In furtherance of the scheme, Calzada and other employees filed at county recorders’ offices fraudulent documents on behalf of the homeowner-clients that purported to replace the legitimate property trustees with fictitious trusts affiliated with Calzada and Star Reliable, all in an effort to “cloud title” and halt or stall the foreclosure process. Additionally, Calzada, and other employees working at his direction, told clients to stop paying their mortgages. They also falsely represented that each client had one million dollars in a U.S. government account that could be used to pay off a homeowner’s mortgage.

Instead of owning their homes “free and clear,” many of Star Reliable’s clients lost their homes in foreclosure. The scheme caused more than 100 homeowner-clients to pay approximately $875,000 to Star Reliable and lending institutions to lose more than $4 million. At least $270,000 of the money paid to Star Reliable by homeowner-clients was funneled back to Calzada.

This case is the product of an investigation by the Federal Bureau of Investigation and the Tulare County District Attorney’s Office. Assistant United States Attorney Patrick R. Delahunty is prosecuting the case.

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

United States Attorney Benjamin B. Wagner released the following statement today on the passing of Retired U.S. Marshal and prominent civil rights leader Jerry Enomoto:

“With the passing of Retired U.S. Marshal Jerry Enomoto, this region has lost a courageous advocate for social justice and equal opportunity. Despite living through one of the most shameful times in our history, as one of the thousands of Japanese-Americans interned during World War II, Jerry’s life was not defined by the adversity he faced, but by his advocacy for civil rights and peaceful progress. 

Jerry dedicating his life to the service of others, earning many ‘firsts,’ including being the first Asian American to receive a presidential appointment to the Office of United States Marshal. It was in this role that I first worked with Jerry, and I had the pleasure of collaborating with him often over the years on a variety of civil rights issues. In 2002, Jerry retired from his post as U.S. Marshal, but he continued to serve the Sacramento region through his chairmanship of the U.S. Attorney’s Greater Sacramento Hate Crimes Task Force, and his work as co-chair, along with his wife Dorothy, of the annual Martin Luther King Jr. Celebration Event.

Jerry was one of Sacramento’s most honorable citizens, and his enduring legacy is in the countless lives he touched, and the next generation of civil rights leaders he helped to inspire.”

FRESNO, Calif. — Senior United States District Judge Anthony Antonio W. Ishii sentenced Antonio Garcia-Villa (Garcia), 46, to seven years in prison and Uriel Silva-Garcia (Silva), 24, to six years and six months in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana and possessing firearms in furtherance of a large-scale cultivation operation near Little Poso Creek in the Sequoia National Forest, United States Attorney Benjamin B. Wagner announced.

Both men pleaded guilty last fall. According to court documents, the defendants were paid to tend more than about 8,500 marijuana plants found at the grow site. To facilitate the cultivation activities, they possessed a loaded rifle and handgun. The cultivation activities caused extensive damage to the public land and natural resources. Native trees and plants were cut down and steep hillsides were terraced to plant the marijuana. Pesticides, including Malathion, fertilizer, water lines, trash, clothing and camping equipment were scattered throughout the site. Judge Ishii ordered the men to pay $4,267 in restitution to the U.S. Forest Service to cover the cost of cleaning up the site.  Both defendants are from Michoacan, Mexico.

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

FRESNO, Calif. — Humberto Ceballos-Rangel (Ceballos), 37, of Mexico, pleaded guilty today in connection with his involvement in a large marijuana cultivation operation found by law enforcement last summer in the Sierra National Forest in Madera County, United States Attorney Benjamin B. Wagner announced.

Ceballos pleaded guilty to one count of conspiracy to manufacture, to distribute, and to possess with the intent to distribute 50 or more marijuana plants. According to court documents, Ceballos and his co-conspirators caused significant damage to public land and natural resources. Ceballos was found at a campsite within a marijuana cultivation site with 5,904 marijuana plants. A firearm and ammunition were recovered from a vehicle associated with the cultivation operation. The cultivation operation caused significant harm to the environmental landscape. Native vegetation was cut to accommodate the marijuana plants, foot trails, and cooking and sleeping areas. Water was also diverted from a nearby creek to irrigate the marijuana plants. Agents found and removed from the site insecticide, propane tanks, and a large quantity of trash and hose line. Ceballos has agreed to make restitution to the U.S. Forest Service for the costs of cleaning up the site.

The charges against Ceballos’ co-defendants, Francisco Javier Gomez-Rodriguez, 38, Alejandro Ramirez-Rojo, aka Alejandro Ramires, 31, also citizens of Mexico, and Anthony Isaac Santibanez, 20, of Woodlake, California, remain pending. These charges are only allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.

Ceballos is scheduled for sentencing before U.S. District Judge Lawrence J. O’Neill on April 18, 2016. He faces a maximum penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case 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), California Department of Justice’s Campaign Against Marijuana Planting (CAMP), 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. — Johnny Alexander Quenga, 29, of Fresno, was sentenced today to six months in prison, to be followed by three years of supervised release for aiming the beam of a laser pointer at Air 1, a Fresno Police helicopter, United States Attorney Benjamin B. Wagner announced.

According to court documents, Quenga repeatedly struck Air 1 with a powerful green laser attached to an airsoft rifle. As a result, the airmen experienced visual interference, flash blindness, after-imaging, a persistent headache lasting several hours, and dizziness. On October 26, 2015, Quenga pleaded guilty to aiming a laser pointer at an aircraft.

“Our continued partnership with the Fresno Police Department helps us address laser strikes in the area in an effort to protect both law enforcement and the public from the significant danger this activity presents,” said Supervisory Special Agent Robert Guyton of the Fresno resident agency of the FBI’s Sacramento Field Office. “We encourage the public to immediately report any individual who shines a laser on aircraft or motor vehicles to stop this dangerous behavior.”

Two Fresno police officers, who were responding to calls to assist in the investigation of the laser incident, collided with a civilian motorist at a busy intersection in northeast Fresno. The officers and civilian were seriously hurt or suffered significant property damage as a result of the accident, which Quenga was monitoring via a police scanner application on his iPhone.

According to the Federal Aviation Administration (FAA), reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. In 2015, the FAA received 7,702 reports of incidents involving laser strikes on aircraft in the United States. In the Eastern District of California, which encompasses 34 counties in the eastern portion of California, there were 214 reported incidents in 2015, with the majority in Fresno. Lasers can completely incapacitate pilots who are trying to fly safely to their destination, endangering their crew members, passengers and people on the ground.

The case against Quenga was investigated by the Federal Bureau of Investigation and the Fresno Police Department. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.

SACRAMENTO, Calif. —Jun Mou Peng, 42, and Shihong Chen, 50, both of Elk Grove, pleaded guilty today to manufacturing marijuana inside homes in Elk Grove and Sacramento, United States Attorney Benjamin B. Wagner announced.

According to court documents, from April 2012 to January 2013, law enforcement observed Peng and Chen and others traveling between five residences in Elk Grove and Sacramento. On January 30, 2013, investigators executed search warrants, and found sophisticated marijuana grows inside each residence. Agents seized 417 growing marijuana plants and processed marijuana at 8270 Cliffcrest Way; 152 growing marijuana plants, multiple kilograms of processed marijuana, and $4,240 in U.S. currency at 9761 McKenna Drive; 251 growing marijuana plants at 8108 Gwerder Court; 282 growing marijuana plants and nearly 10 kilograms of processed marijuana at 3713 45th Avenue; and inside 8646 Everidge Court, agents found 867 growing marijuana plants, approximately 31 kilograms of cultivated marijuana, and $7,070 in U.S. currency.

Peng and Chen are scheduled to be sentenced on March 30, 2016, by United States District Judge Kimberly J. Mueller. Each faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Co-defendant Zhiqiang Liu pleaded guilty to manufacturing marijuana on December 16, 2015.  He is scheduled to be sentenced on March 9, 2016. 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.

On September 30, 2015, co-defendant Huanhao Chen pleaded guilty to concealing a felony, and on December 17, 2015, he was sentenced to one year of probation. On October 28, 2015, co-defendant Qinghong Li pleaded guilty to conspiracy to manufacture marijuana and manufacturing marijuana, and she was sentenced to one year in prison.

This case is the product of an investigation by the Drug Enforcement Administration and the Elk Grove Police Department. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.

SACRAMENTO, Calif. —Zalathiel Aguila, 42, and Omar Anabo, 53, both of Vallejo, pleaded guilty today to conspiracy to make false statements on loan applications, United States Attorney Benjamin B. Wagner announced.

According to court documents, between October 2004 and May 2007, Aguila and Anabo operated Vallejo‑based Capital Access LLC, an entity targeting homeowners facing foreclosure. The defendants’ “Keep Your Home” program purported to be a temporary rescue plan whereby “qualified investors” took over the mortgages while the homeowners paid rent and worked on rebuilding their credit. The defendants convinced homeowners to sign over title to their homes, which were then sold to straw buyers. The straw buyers obtained loans under fraudulent pretenses by claiming on loan applications that, for example, they intended to occupy the homes as primary residences and that no part of the down payment for the purchase was borrowed. In fact, Capital Access provided the down payment amounts, and the straw buyers never intended to live in the properties. The defendants stripped the equity from the homes and used it to pay the operating expenses of Capital Access, additional fraudulent home purchases, monthly housing payments on the homes for a limited period of time, and personal expenses.

Many of the distressed homeowners were never told that they were permanently signing over title to their homes to Capital Access. Victim homeowners suffered substantial financial hardship; they lost their homes and were forced to move.

In all, the scheme caused the fraudulent sale of at least $27 million in home properties, involving at least 69 properties across California, and at least $23.99 million in fraudulently obtained property loans. Lenders lost at least $10.47 million as a result.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Matthew M. Yelovich is prosecuting the case.

Aguila and Anabo are scheduled to be sentenced by United States District Judge Garland E. Burrell Jr. on April 1, 2016. Both defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Gregory J. Chmielewski, 46, of West Bend, Wisconsin, pleaded guilty today to two counts of mail fraud for a scheme where he transferred business funds to his own personal use, United States Attorney Benjamin B. Wagner announced.

According to his plea agreement, Chmielewski set up a professional employer organization called Independent Management Resources (IMR). He solicited an Indian tribe to partner with him and provide employee insurance coverage and other employee services at a reduced cost. Chmielewski marketed the insurance coverage to California employers as a low-cost alternative workers’ compensation coverage. Because of the low rates, Chmielewski was successful in obtaining employer clients. Chmielewski then began diverting and misappropriating millions of dollars from IMR accounts for his personal use. Eventually, the company experienced serious cash flow problems and was forced to cease operations, leaving approximately 117 injured workers with approximately $1.8 million in unpaid claims.

This case is the product of an investigation by the United States Postal Inspection Service, the Internal Revenue Service, Criminal Investigation, and the California Department of Insurance. Assistant U.S. Attorneys Heiko P. Coppola and Andre’ Espinosa are prosecuting the case.

Chmielewski is scheduled to be sentenced on April 1, 2016, by U.S. District Judge Garland E. Burrell Jr. Chmielewski faces a maximum statutory penalty of 20 years in prison and a $250,000 fine or up to twice the gain or loss from the offense. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Seyyed Ali Noori, 48, of Mountain House, charging him with trafficking and attempted trafficking in counterfeit goods, United States Attorney Benjamin B. Wagner announced.

According to court documents, Noori owned and operated Goldstar Wholesale LLC, a wholesale and retail business selling apparel, accessories and other goods. Noori he stored Goldstar’s inventory in a warehouse in Tracy and sold Goldstar’s goods from the warehouse and also from a reserved space at the Galt Flea Market. Court documents allege that in December 2013, Noori intentionally trafficked and attempted to traffic in goods that had counterfeit trademarks belonging to the Oakland Raiders, the San Francisco 49ers, the San Francisco Giants, and Monster Energy.

This case is the product of an investigation by the Sacramento Intellectual Property Rights Task Force. Department of Justice Trial Attorneys Aaron Cooper and Timothy Flowers are prosecuting the case, with assistance from Assistant U.S. Attorney Shelley D. Weger.

If convicted, Noori faces a maximum statutory penalty of 20 years in prison and a $4 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 Sacramento grand jury returned an indictment today charging Aws Mohammed Younis Al-Jayab, 23, of Sacramento, with one count of making a false statement involving international terrorism, Assistant Attorney General for National Security John P. Carlin and United States Attorney Benjamin B. Wagner announced.

Al-Jayab is in custody and is scheduled for arraignment on January 22, 2016, at 2:00 PM in courtroom 25 before U.S. Magistrate Judge Kendall J. Newman. Al-Jayab was arrested by criminal complaint on Jan. 7, 2016.

According to the indictment, on Oct. 6, 2014, Al-Jayab was interviewed by U.S. Citizenship and Immigration Services and indicated that he had not ever: been a member of any rebel group or militia; provided material support for any person or group engaged in terrorist activity; and been a member of a group, or assisted in a group, which used or threatened the use of weapons against others. Al-Jayab also allegedly stated during the interview that he had traveled to Turkey in late 2013 and early 2014 to visit his grandmother. The indictment alleges that all of the aforementioned statements are false.

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

This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Joint Terrorism Task Force (JTTF), a team of federal, state, and local law enforcement agents and officers investigating domestic and international terrorism. Assistant United States Attorney Jill Thomas and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section are prosecuting the case. The investigation is ongoing.

A grand jury in Sacramento, California, returned an indictment today charging Aws Mohammed Younis Al-Jayab, 23, of Sacramento, with one count of making a false statement involving international terrorism, Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Benjamin B. Wagner of the Eastern District of California announced.

Al-Jayab is in custody and is scheduled for arraignment on Jan. 22, 2016, at 2:00 PM PST before U.S. Magistrate Judge Kendall J. Newman of the Eastern District of California.  He was arrested by criminal complaint on Jan. 7, 2016.

According to the indictment, on Oct. 6, 2014, Al-Jayab was interviewed by U.S. Citizenship and Immigration Services and indicated that he had not ever: been a member of any rebel group or militia; provided material support for any person or group engaged in terrorist activity; and been a member of a group, or assisted in a group, which used or threatened the use of weapons against others.  Al-Jayab also allegedly stated during the interview that he had traveled to Turkey in late 2013 and early 2014 to visit his grandmother.  The indictment alleges that all of the aforementioned statements are false.

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

This case is the product of an investigation by the FBI and the Sacramento Joint Terrorism Task Force (JTTF).  The case is being prosecuted by Assistant U.S. Attorney Jill Thomas of the Eastern District of California and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section.  The investigation is ongoing.

Al-Jayab Indictment

SACRAMENTO, Calif. — Eric M. Shaffer, 42, of Modesto, was sentenced today by United States District Judge John A. Mendez to one year and a day in prison for theft of Department of Defense property worth more than $316,000, United States Attorney Benjamin B. Wagner announced.

According to court documents, Shaffer was an employee at the Department of Defense Logistics Agency, San Joaquin Distribution Center, in Tracy, (Tracy DLA Depot). Shaffer regularly had access to new goods delivered by venders that were stored at the Tracy DLA Depot before being shipped to military bases in the Pacific Ocean region and elsewhere.

Between February 2011, and January 2015, Shaffer stole from the Tracy DLA Depot at least 660 items of government property and resold them in approximately 365 transactions, including 325 auctions on a popular online auction website. Shaffer’s scheme generated approximately $238,000 in illicit revenue. The approximate replacement value of the property Shaffer stole and resold exceeded $316,000. In addition to the prison sentence today, Judge Mendez ordered Shaffer to pay $316,557 in restitution.

This case was the product of an investigation by the General Services Administration, Office of Inspector General; the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and the Department of Defense, Defense Criminal Investigative Service. Assistant U.S. Attorney André M. Espinosa prosecuted the case.

FRESNO, Calif. — Three defendants have been sentenced by United States District Judge Anthony W. Ishii for a conspiracy to distribute heroin, United States Attorney Benjamin B. Wagner announced.

On Monday, Rafael Legorreta, 34, of Bakersfield, was sentenced to nine years and five months in prison, and Francisco Rivera, 29 of Palmdale, was sentenced to seven years in prison. On January 4, 2016, Julio Perez, 32, of Bakersfield, was sentenced to 10 years in prison.

According to court documents, on December 2, 2014, members of Kern County Sheriff’s Gang Suppression Unit conducted a probationary search of the home of Julio Perez. Perez, Legorreta, and Rivera were located in the locked basement of the residence with approximately 10 lbs. of heroin, together with packaging material, zip lock bags, digital scales, metal strainers, a blender, and drug paraphernalia, among other items. All three defendants appeared to have heroin residue on their hands and clothing, and all three subsequently admitted to their involvement in the conspiracy.

This case was the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Gang Suppression Unit. Assistant United States Attorney Brian K. Delaney prosecuted the case.

SACRAMENTO, Calif. — David M. Lewis, 62, of Sacramento, pleaded guilty today to health care fraud for his role in a scheme to defraud the health care benefit program used by United Parcel Service (UPS) employees, United States Attorney Benjamin B. Wagner announced.

According to court documents, beginning in late 2008 or early 2009, Lewis, a dentist practicing in Sacramento, began targeting UPS employees for dental treatment because their health care plan under the Northern California General Teamsters Security Fund provided 100 percent coverage without any annual limits. Lewis offered cash and other incentives to UPS patients for receiving dental treatment or for recruiting other UPS employees to receive such treatment.

In some instances, Lewis caused claims to be submitted to Delta Health Systems, which administered the UPS health care plan, that falsely billed the plan for work that was never performed. In many other instances, Lewis performed unnecessary dental work on UPS employees, including root canals, and claims were submitted to Delta for payment for these unnecessary services.

Lewis created false narratives for dental work that was not performed or created false statements about purported pre-existing dental conditions to justify the work performed. In some instances, Lewis drilled into teeth to install temporary filings and instructed his assistants to take X-rays of the temporary filings. Lewis then submitted claims to Delta with X-rays of the temporary fillings, falsely claiming that the X‑rays depicted tooth decay justifying further restorative procedures.

The total loss associated with Lewis’s health care fraud may be as high as $1 million.

An employee at Lewis’s dental practice, Nichol Ramirez aka Nichol Lomack, previously pleaded guilty to one count of health care fraud for her part in the fraud scheme. (2:14-cr-056 MCE)

These cases are the product of an investigation by the U.S. Department of Labor, Office of Inspector General-Office of Labor Racketeering and Fraud Investigations and the U.S. Department of Labor, Employee Benefits Security Administration, with assistance from the California Dental Board and the California Attorney General’s Office. Assistant United States Attorney Todd A. Pickles is prosecuting the cases.

Lewis is scheduled to be sentenced by United States District Judge Morrison C. England Jr. on March 31, 2016, and Lomack is scheduled to be sentenced on September 1, 2016. Both Lewis and Lomack face a maximum statutory penalty of 10 years in prison and a fine of $250,000 or twice the gross loss or gain of the scheme. 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. — Tony Huy Havens, 42, of Modesto, was sentenced Monday by United States District Judge Lawrence J. O'Neill to three years and five months in prison for his role in two mortgage fraud schemes, United States Attorney Benjamin B. Wagner announced.

Havens had earlier pleaded guilty to committing mail fraud and wire fraud in the two schemes, which were charged in separate criminal cases.

According to the indictment in the first scheme, Havens devised an “advance fee” scheme that targeted victims in at least eight states who were seeking multi-million dollar loans for large construction projects that were in danger of foreclosure. Havens provided the victims with fraudulent documents that showed a third-party lender was prepared to make a loan to the victim. On Havens' instructions, the victims wire-transferred money into a bank account controlled by Havens to pay in advance certain costs associated with the loans. No loans were ever made. In total, Havens represented that he could arrange at least $1.1 billion in financing for at least 15 victim borrowers, and collected at least $248,750 by wire transfers from these victim borrowers.

According to the indictment in the second scheme, Havens arranged to purchase a single family residence in Modesto using two relatives as straw buyers. He obtained a loan in the name of the straw buyers that exceeded the actual selling price of the property, and arranged to have a portion of the purchase price sent back to him, which he used as the down payment for the purchase.

The cases were the product of investigations by the Federal Bureau of Investigation, the Stanislaus County District Attorney's Office, and the Federal Housing Financing Agency, Office of Inspector General. Assistant United States Attorneys Mark J. McKeon and Mia Giacomazzi prosecuted the cases.

Havens was ordered to self-surrender to begin serving his sentence on April 4, 2016.

FRESNO, Calif. — Yolanda Castro, 48, an employee of the U.S. Internal Revenue Service in Fresno, pleaded guilty today to aiding and assisting in the preparation of a false tax return, United States Attorney Benjamin B. Wagner announced.

According to court documents, Castro was employed by the IRS for approximately 20 years, including as a tax examiner and contact representative. Between 2007 and 2013, she prepared and filed false federal income tax returns for herself, her family members and others in which she fraudulently claimed tax deductions and credits. For instance, on her own 2008 tax return, Castro claimed a credit for education expenses that she did not incur, and provided the IRS phony textbook receipts to support the claim. Likewise, in tax returns she prepared for herself and others, Castro claimed child care expenses that had not been incurred.

This case is the product of an investigation by the U.S. Department of the Treasury Inspector General for Tax Administration and the IRS‑Criminal Investigation. Assistant United States Attorney Mark J. McKeon is prosecuting the case.

Castro is scheduled to be sentenced by Judge Dale A. Drozd on April 4, 2016. Castro faces a maximum statutory penalty of three 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. — Shelley Corkins, aka Shelley Kimbrell, 39, of Fresno, was sentenced Monday by Senior United States District Judge Anthony W. Ishii to two years and three months in prison for three counts of wire fraud in connection with a scheme to embezzle more than $585,000 from the law firm that formerly employed her, United States Attorney Benjamin B. Wagner announced.

According to court documents, Corkins was employed by a Fresno-based law firm as a bookkeeper and accounting department supervisor. Between January 2008 and May 2012, Corkins abused her access and authority to manage the law firm’s finances and embezzled the law firm’s money for her own personal use. Corkins used her company credit card to make personal purchases at various retail outlets, including clothing and toy stores, electronically transferred funds from the law firm’s bank accounts to her own, and embezzled the law firm’s petty cash. Corkins pleaded guilty to three counts of wire fraud on February 10, 2015.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Henry Z. Carbajal III and Christopher D. Baker prosecuted the case.

FRESNO, Calif. —Pablo Cesar Sahagun, 26, of Bakersfield, pleaded guilty today to aiming the beam of a laser pointer at a Kern County Sheriff’s helicopter, United States Attorney Benjamin B. Wagner announced.

In pleading guilty, Sahagun acknowledged that on February 26, 2015, he repeatedly struck and tracked a Kern County Sheriff’s Office helicopter, Air-1, with the beam of a green laser pointer. According to court documents, the laser pointer was key activated and labeled as a Laser 301, a device that purports to emit a one-watt laser beam, which is 2,000 times more powerful than what is legally permissible for a laser pointer.

Reports of laser attacks on aircraft have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. From 2011 to 2015, there have been over 23,000 laser illumination incidents in the United States reported to the Federal Aviation Administration (FAA). In 2015, in the Eastern District of California, which encompasses 34 counties in the eastern portion of California, there were 213 reported laser incidents. Lasers can completely incapacitate pilots who are trying to fly safely to their destinations, endangering their crew members, passengers and people on the ground.

Sahagun is scheduled for sentencing before U.S. District Judge Dale A. Drozd on April 4, 2016. Sahagun 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.

The case against Sahagun was investigated by the Federal Bureau of Investigation, the Kern County Sheriff’s Office, and Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

If you have information about a lasing incident, or see someone pointing a laser at an aircraft, call your local FBI field office or dial 911.

SACRAMENTO, Calif. — A Sacramento resident was arrested today on a federal charge of making a false statement involving international terrorism. Aws Mohammed Younis Al-Jayab, 23, is charged in a criminal complaint that was unsealed today in the U.S. District Court for the Eastern District of California following his arrest. He is in custody and will be making an initial appearance Friday in federal court in Sacramento at 2:00 PM.

The arrest was announced by Assistant Attorney General for National Security John P. Carlin, United States Attorney Benjamin B. Wagner of the Eastern District of California, and Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Division.

“Aws Mohammed Younis Al-Jayab allegedly traveled overseas to fight alongside terrorist organizations and lied to U.S. authorities about his activities,” said Assistant Attorney General Carlin. “The National Security Division’s highest priority is protecting the nation from terrorism, and we will continue to hold accountable those who seek to join or aid the cause of terrorism, whether at home or abroad.”

“According to the allegations in the complaint, the defendant traveled to Syria to take up arms with terrorist organizations and concealed that conduct from immigration authorities,” said U.S. Attorney Wagner. “While he represented a potential safety threat, there is no indication that he planned any acts of terrorism in this country. I commend the FBI’s Joint Terrorism Task Force for their dedicated work on this matter.”

“In today’s complex terrorism environment, our Joint Terrorism Task Force plays an important role in combating the threat of terrorism. The collaboration is stronger than ever and essential to protect our communities from harm,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation Sacramento Field Office. “The public plays an equal, if not more important, role in protecting the community. We encourage those who encounter individuals who express an intent to do harm or claim allegiance to a terrorist group—whether in person or online—to voice their concerns to law enforcement.”

According to the complaint, Al-Jayab is a Palestinian born in Iraq, who emigrated from Syria to the United States as a refugee in October 2012. Between October 2012 and November 2013, while living in Arizona and Wisconsin, he communicated over social media with numerous other individuals about his intent to return to Syria to fight for terrorist organizations. In those communications, according to the complaint, Al-Jayab discussed his previous experience with firearms and with fighting against the regime in Syria. On Nov. 9, 2013, he flew from Chicago to Turkey, and then traveled to Syria. Between November 2013 and January 2014, Al-Jayab allegedly reported on social media that he was in Syria fighting with various terrorist organizations, including Ansar al-Islam, a designated foreign terrorist organization since 2004. He returned to the United States on Jan. 23, 2014, and settled in Sacramento.

The complaint alleges that on October 6, 2014, Al-Jayab was interviewed by U.S. Citizenship and Immigration Services and responded in the negative to numerous questions, including whether he had ever been a member of any rebel group or militia; whether he had ever provided material support for any person or group engaged in terrorist activity; and whether he had ever been a member of a group, or assisted in a group, which used or threatened the use of weapons against others. Al-Jayab also allegedly stated during the interview that he had traveled to Turkey in late 2013 and early 2014 to visit his grandmother. The complaint alleges that all of those answers were materially false.

If convicted, Al-Jayab faces a maximum statutory penalty of eight years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Joint Terrorism Task Force (JTTF), a team of federal, state, and local law enforcement agents and officers investigating domestic and international terrorism. Assistant United States Attorney Jill Thomas and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section are prosecuting the case. The investigation is ongoing.

A Sacramento, California, resident was arrested today on a federal charge of making a false statement involving international terrorism.  Aws Mohammed Younis Al-Jayab, 23, is charged in a complaint that was unsealed today in the U.S. District Court of the Eastern District of California following his arrest.  He will have his initial appearance tomorrow at 2:00 p.m. PST in Sacramento.

The arrest was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Benjamin B. Wagner of the Eastern District of California and Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Division.

“Aws Mohammed Younis Al-Jayab allegedly traveled overseas to fight alongside terrorist organizations and lied to U.S. authorities about his activities,” said Assistant Attorney General Carlin.  “The National Security Division’s highest priority is protecting the nation from terrorism, and we will continue to hold accountable those who seek to join or aid the cause of terrorism, whether at home or abroad.”

“According to the allegations in the complaint, the defendant traveled to Syria to take up arms with terrorist organizations and concealed that conduct from immigration authorities,” said U.S. Attorney Wagner.  “While he represented a potential safety threat, there is no indication that he planned any acts of terrorism in this country. I commend the FBI’s Joint Terrorism Task Force for their dedicated work on this matter.”

“In today’s complex terrorism environment, our Joint Terrorism Task Force plays an important role in combating the threat of terrorism. The collaboration is stronger than ever and essential to protect our communities from harm,” said Special Agent in Charge Miller.  “The public plays an equal, if not more important, role in protecting the community.  We encourage those who encounter individuals who express an intent to do harm or claim allegiance to a terrorist group – whether in person or online – to voice their concerns to law enforcement.”

According to the complaint, Al-Jayab is a Palestinian born in Iraq, who came to the United States as an Iraqi refugee in October 2012.  Between October 2012 and November 2013, while living in Arizona and Wisconsin, he communicated over social media with numerous other individuals about his intent to return to Syria to fight for terrorist organizations.  In those communications, according to the complaint, Al-Jayab discussed his previous experience with firearms and with fighting against the regime in Syria.  On Nov. 9, 2013, he flew from Chicago to Turkey, and then traveled to Syria.  Between November 2013 and January 2014, Al-Jayab allegedly reported on social media that he was in Syria fighting with various terrorist organizations, including Ansar al-Islam, a designated foreign terrorist organization since 2004.  He returned to the United States on Jan. 23, 2014, and settled in Sacramento.

The complaint alleges that on Oct. 6, 2014, Al-Jayab was interviewed by U.S. Citizenship and Immigration Services and responded in the negative to numerous questions, including whether he had ever been a member of any rebel group or militia; whether he had ever provided material support for any person or group engaged in terrorist activity; and whether he had ever been a member of a group, or assisted in a group, which used or threatened the use of weapons against others.  Al-Jayab also allegedly stated during the interview that he had traveled to Turkey in late 2013 and early 2014 to visit his grandmother.  The complaint alleges that all of those answers were materially false.

If convicted, Al-Jayab faces a maximum statutory penalty of eight years in prison and a $250,000 fine.  Any potential sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal history, if any, the defendant’s role in the offense and the characteristics of the violation.

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

The ongoing investigation is being conducted by the FBI’s Joint Terrorism Task Force.  The case is being prosecuted by Assistant U.S. Attorney Jill Thomas of the Eastern District of California and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section. 

Al-Jayab Complaint (Has Been Unsealed)

FRESNO, Calif. — Jesus Manuel Peraza Ruiz, 56, of Bakersfield, was sentenced Monday by United States District Judge Lawrence J. O'Neill to nine years in prison for possessing methamphetamine with the intent to distribute, United States Attorney Benjamin B. Wagner announced.

According to court documents, a vehicle driven by Peraza Ruiz was stopped in Kern County, and a narcotics detection K-9 alerted to six packages of methamphetamine inside a hidden compartment. The methamphetamine weighed 5.8 pounds and the Drug Enforcement Administration laboratory determined it was 98.8 percent pure.

This case was the product of an investigation by the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bakersfield Police Department, the Kern County Sheriff’s Office, and the Kern County Probation Department. Assistant United States Attorney Laurel J. Montoya prosecuted the case.

Peraza Ruiz’s co-defendants were previously sentenced by Judge O’Neill: Baltazar Garcia was sentenced to 10 years in prison, Adam Vega was sentenced to eight years in prison, and Robert Canchola was sentenced to five years and 10 months in prison.

SACRAMENTO, Calif. — Andrew J. Watkins, 48, of Linden, pleaded guilty today before U.S. Magistrate Judge Edmund F. Brennan to a misdemeanor assault on a federal officer, United States Attorney Benjamin B. Wagner announced.

According to court documents, on February 27, 2012, Watkins pointed a semi‑automatic pistol at a United States Fish and Wildlife special agent while the agent was performing a field inspection for possible violation of the Endangered Species Act on fenced farmland owned by the Watkins family. Watkins continued to point the pistol at the agent even after the agent identified himself as a federal agent. The situation was diffused with the arrival of Watkins’ brother.

“We will prosecute persons who attempt to interfere with or intimidate federal law enforcement agents in the performance of their duties,” said U.S. Attorney Wagner.

Watkins is scheduled to be sentenced on March 21, 2016. The plea agreement contemplates a sentence of four years of probation, a fine between $10,000 and $25,000, and the condition that the defendant is prohibited from possessing any firearm outside his residence. The actual sentence, however, will be determined at the discretion of the court at the sentencing hearing.

This case is the product of an investigation by the U.S. Fish and Wildlife Service. Assistant U.S. Attorneys Richard Bender and Samuel Wong are prosecuting the case.

FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Orlando Rangel, 31, and George Boone, 38, both of Modesto, charging them with being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced. In addition, Rangel was charged with possession of a stolen firearm.

According to court documents, agents learned that Boone and Rangel, previously convicted felons, were selling a .50‑caliber rifle. Over the course of several days in November and December 2015, undercover agents purchased the .50-caliber rifle, which was equipped with a scope and bipod. Rangel admitted that he had stolen the firearm.

This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Modesto Police Department. Assistant United States Attorney Michael Frye is prosecuting the case.

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

SACRAMENTO, Calif. — A federal grand jury returned an 11-count indictment today against Deborah Hollimon, 39, last known residences of Stockton, California and West Memphis, Arkansas, charging her with unemployment fraud and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.

According to court documents, between September 2012 and September 2015, Hollimon operated a “fictitious employer” scheme. Hollimon created employers with the California Employment Development Department (EDD) that were entirely fictitious and did not conduct any business. Hollimon then caused the submission of information to the EDD falsely indicating that various persons, including herself and various unwitting victims of identity theft, were employed by the fictitious entities. Hollimon subsequently filed unemployment claims in her own name and the names of the fake laid-off employees. The fraudulent unemployment insurance benefits were usually mailed to an address controlled by Hollimon. In this way, Hollimon collected over $550,000 in fraudulent unemployment insurance benefits.

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

Hollimon’s current whereabouts are unknown. Anyone with information on her whereabouts should call (415) 625-2685.

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

FRESNO, Calif. — Fernando Alanis, 52, of Rio Grande City, Texas and Parlier, California, was arrested yesterday pursuant to an indictment charging him in connection with an unemployment insurance fraud scheme, United States Attorney Benjamin B. Wagner announced. On November 19, 2015, a federal grand jury returned a 20-count indictment against Alanis charging him with mail fraud.

According to court documents, Alanis was a supervisor with a farm labor contractor located in Sanger, California. Alanis would arrange for the hiring of laborers and would supervise forepersons or “crew bosses” who would oversee laborers in fruit packing houses and agricultural fields. Alanis would employ undocumented workers by having the laborers work under the identities of Alanis’ relatives and acquaintances who were authorized to work in the United States. The wages earned by the undocumented laborers would be reported to the California Employment Development Department as wages earned by the identities arranged by Alanis, and not by the actual workers who earned the wages. After the seasonal agricultural employment was over, Alanis provided documentation to the individuals whose identities were used to enable them to file unemployment insurance claims for work they never performed and wages they did not earn. The individuals whose identities were used would pay Alanis for the information to enable the unemployment insurance claims, or would otherwise share those stolen benefits with Alanis.

This case was the product of an investigation by the Department of Labor, Office of Inspector General, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Employment Development Department, Investigation Division. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.

If convicted, Alanis faces a maximum statutory penalty of twenty 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. — A federal grand jury returned an indictment on Thursday, December 17, 2015, against Nelli Kesoyan, 43, of Rancho Cordova, charging her with making false entries and reports, United States Attorney Benjamin B. Wagner announced. 

According to court documents, Kesoyan was employed by the Social Security Administration as a claims representative. On October 10, 2014, she made false entries in Social Security Administration records in order to deceive and mislead United States officials conducting naturalization proceedings for another individual.

The indictment was unsealed on Monday, and Kesoyan was arraigned Monday afternoon. She pleaded not guilty. A status conference was set for January 26, 2016, at 09:15 AM in Courtroom 6 before United States District Judge John A. Mendez.

This case is the product of an investigation by the Social Security Administration Office of the Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Jeremy Kelley and Jared Dolan are prosecuting the case.

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