Eastern District of California

FRESNO, Calif. — United States Attorney Benjamin B. Wagner announced that on Monday, December 21, 2015, United States District Judge Lawrence J. O’Neill sentenced two defendants for child exploitation offenses.

In the first case, Steven Christopher Montes, 26, of Visalia, was sentenced to seven years in prison, to be followed by a 10-year term of supervised release, for possessing sexually explicit videos of minors. According to court documents, from November 2013 through August 2014 and while serving as a band teacher at Riverdale High School, Montes knowingly and surreptitiously took sexually explicit videos of minors on campus. Montes obtained the videos by directing student band members to remove all of their street clothes, including under garments, when changing into band or color guard uniforms inside a particular storage room where he had secretly set up a laptop computer to record them. In sentencing, Judge O’Neill stated that Montes’s conduct was “particularly reprehensible because of [his] position as an employee of the high school.”

This case was the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno County Sheriff’s Office and the Kings County District Attorney Investigators’ Office. Assistant U.S. Attorneys Brian W. Enos and Vincente A. Tennerelli prosecuted the case.

In the second case, Alexander Kastler, 28, of Simi Valley, was sentenced to eight years and eight months in prison for possession of child pornography. According to court documents, Kastler, who has a previous conviction for possession of child pornography and was residing at a sober-living facility in Kern County, was found in possession of a cellphone and tablet computer that contained thousands of images of child pornography.

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

SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner joined community leaders at two events this weekend designed to promote unity and peace in the wake of the mass shooting in San Bernardino.

On Friday, December 18, 2015, U.S. Attorney Wagner participated in a panel held by the Tarbiya Institute in Rocklin. “Rising to the Challenge: An Urgent Community Dialogue” was an opportunity for Muslim community members to express their concerns and to learn how best to respond to challenging situations. U.S. Attorney Wagner described the government’s response to the increase in incidents of vandalism, threats and property damage directed at Muslim organizations and individuals.

On Saturday, U.S. Attorney Wagner joined other officials and a diverse assembly of community and faith leaders at the “Unity & Peace Rally in Support of San Bernardino and Against Hate” held at the Capitol in Sacramento. In the aftermath of the San Bernardino shooting, hundreds gathered at the Capitol steps to show their support for the victims to denounce ant-Muslim bigotry, and to pray for peace and unity.

“In the face of a terrorist attack, we should demonstrate unity as Americans, not division. We should embrace our tradition of tolerance and religious pluralism, not turn on our neighbors,” said U.S. Attorney Wagner. “One of the most important functions of the U.S. Department of Justice is to protect the rights of religious minorities. In the wake of terrorist incidents in Europe and here in California, there has been an increase in reports of threats, harassment and other incidents of attempted intimidation of members of American Muslim communities. Targeting others for violence or intimidation because of their religious affiliation is itself an act of terrorism, and we will not hesitate to prosecute those who engage in such conduct.”

Recently DOJ’s Head of the Civil Rights Division Vanita Gupta delivered remarks at the White House’s convening of “Celebrating and Protecting America’s Tradition of Religious Pluralism.” For a link to the text of her remarks click here.

FRESNO, Calif. — On Tuesday, December 15, 2015, Jesús Flores Buenrostro, 36, of California, was ordered to be extradited to Mexico where he is wanted to stand trial for the alleged 2007 killing of a man in Sahuayo de Morales, Michoacán, United States Attorney Benjamin B. Wagner announced.

According to the extradition request submitted by Mexico, Jesús Flores Buenrostro is charged with homicide after allegedly shooting a man on April 30, 2007. According to witness statements, Jesús Flores Buenrostro and some companions went to a square in the town where a fight had broken out earlier in the evening. When they arrived at the square, Jesús Flores Buenrostro and his companions encountered a group of men. Jesús Flores Buenrostro loaded a firearm and fired two shots at the group of men. The victim was struck twice by the shots and died of his wounds. Jesús Flores Buenrostro, an American citizen, fled to the United States.

The United States Marshals Service arrested Jesús Flores Buenrostro in Kern County in July 2015. On December 15, 2015, following federal court proceedings in Fresno, the court certified his extraditability to Mexico.

“Just as we ask Mexico’s cooperation in extraditing those who violate our laws, that country seeks ours in extraditing those who violate their laws,” said United States Attorney Wagner. “We have a mutual interest in ensuring that neither country is a safe haven for those fleeing justice in the other.”

This case was handled by Assistant U.S. Attorney Daniel Griffin of the Eastern District of California, the Office of International Affairs in the Justice Department’s Criminal Division, and the U.S. Marshals Service.

FRESNO, Calif. — United States Attorney Benjamin B. Wagner announced today the appointment of Kirk Sherriff as the new chief for the U.S. Attorney’s Office in Fresno. Sherriff’s appointment follows the departure of long-time Fresno chief Mark Cullers who has been appointed by the Governor to serve as a Judge of the Superior Court for Fresno County.

Cullers, a Sacramento native, has served as chief of the U.S. Attorney's Office, Eastern District of California, Fresno Division since 2003. Prior to that he served as deputy chief from 1997 to 2003 and as an Assistant U.S. Attorney from 1988 to 1997. Cullers was an associate attorney at Kronick, Moskovitz, Tiedemann and Girard from 1986 to 1988. He earned his Juris Doctor degree from the George Washington University Law School and a Bachelor of Arts Degree from the University of California, Los Angeles. As chief of the office, Cullers mentored many Assistant United States Attorneys, established a tone of collaboration and team spirit and was an outstanding representative of the office throughout the greater Fresno region.

Assistant United States Attorney Kirk Sherriff has worked in the Fresno office since 2002. He initially served for five years in the civil division and joined the criminal division in 2007. Sherriff has handled many of the most complex and high-profile cases in the office and has been the White Collar Unit chief for the last three years. In particular, he has overseen and personally litigated multiple large-scale mortgage fraud prosecutions, which arose out of the financial crisis that so severely impacted California’s Central Valley. As unit Chief, Sherriff oversaw tremendous growth in the office’s white collar practice, and served as a mentor to many new prosecutors. Before joining our office, Sherriff spent six years with a major international law firm in New York and Paris. He is a cum laude graduate of both Columbia University and Harvard Law School.

The Fresno office is responsible for federal criminal prosecution and civil litigation in an 11-county area from Modesto to the Los Angeles County line. It handles federal cases from these counties: Calaveras, Fresno, Inyo, Kern, Kings, Madera, Mariposa, Merced, Stanislaus, Tulare, and Tuolumne.

SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against Scott Anthony Orton, 57, of Puyallup, Washington, charging him with transmitting interstate threats, United States Attorney Benjamin B. Wagner announced.

According to court documents, Orton posted several threatening statements on a popular news website in which he expressed his intent to travel to Placerville, California to kill the target of the threats who was an officer of StemExpress.

According to the indictment, on July 16, 2015, among other threats, Orton wrote, “The management of StemExpress should be taken by force and killed in the streets today. Kill StemExpress employees. I'll pay you for it.”

“Terrorizing others through threats of violence, whether communicated in person or through media websites, is cruel, dangerous and disruptive, and is also a federal crime,” said U.S. Attorney Wagner. “Those who seek to terrorize others online should not assume that they will be protected by the anonymity of the Internet. We will identify and prosecute them.”

“The FBI will identify and investigate threats and those who solicit violence on the Internet,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento field office. “While we all have a right to state our opinions, anonymously terrorizing others with threats of significant harm will not be tolerated.”

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

Orton is scheduled to be arraigned before United States Magistrate Judge Kendall J. Newman on December 29, 2015, at 2:00 p.m.

If convicted, Orton faces a maximum statutory penalty of 5 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. — Today, United States Attorney Benjamin B. Wagner announced the selection of Sacramento in the Eastern District of California as one of only six locations from across the United States designated to form new federal task forces as part of the Anti-Trafficking Coordination Team (ACTeam) Initiative, an interagency federal law enforcement initiative aimed at streamlining the investigation and prosecution of federal human trafficking offenses.

U.S. Attorney Wagner’s announcement follows the joint announcement of Attorney General Loretta E. Lynch, Secretary of Homeland Security Jeh Johnson, and Secretary of Labor Thomas E. Perez earlier today designating the following cities as Phase II ACTeam sites: Cleveland, Ohio; Minneapolis, Minnesota; Newark, New Jersey; Portland, Maine; Portland, Oregon; and Sacramento, California. Sacramento was selected based on the commitment to identifying, investigating and prosecuting forced labor, international sex trafficking, and adult sex trafficking; the prevalence or suspected prevalence of these types of trafficking in the Sacramento area; and levels of cooperation among various law enforcement agencies and the US Attorney’s Office to combat human trafficking.

U.S. Attorney Wagner stated: “Consistent with the direction provided by the Attorney General, the investigation and prosecution of all forms of human trafficking is a top priority for our office. We are proud of our outstanding record of prosecuting various child exploitation offenses, and we are committed to continuing and enhancing our critical work in the identification and prosecution of offenses related to forced labor, international sex trafficking, and adult sex trafficking. I am pleased by our selection as an ACTeam location, which reflects the hard work we’ve already done in this area and will assist us in doing even more.”

ACTeams are aimed at developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking, and sex trafficking of adults by force, fraud, and coercion, complementing Project Safe Childhood and related efforts aimed at combating child sexual exploitation, including child sex trafficking. ACTeams bring together federal prosecutors and federal agents from multiple federal investigative agencies to develop and implement proactive anti-trafficking case identification, investigation, and prosecution strategies in close coordination with one another and with national anti-trafficking subject matter experts. Over the next two years, teams are expected to develop high-impact federal investigations and prosecutions, dismantle human-trafficking networks, vindicate the rights of human-trafficking victims and bring traffickers to justice. The new EDCA team will consist of personnel from Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the U.S. Department of Labor.

During Phase I of the ACTeam Initiative, Phase I Pilot ACTeams were convened in Atlanta, Georgia; El Paso, Texas; Kansas City, Missouri; Los Angeles, California; Memphis, Tennessee; and Miami, Florida. Phase I proved highly successful, with ACTeam Districts collectively increasing prosecutions by 119 percent, compared to 35 percent nationwide during the same two-year period.

Based on the outstanding results of Phase I, Attorney General Lynch, Secretary of Homeland Security Johnson, and Secretary of Labor Perez launched Phase II on June 25, 2015, by soliciting joint applications from United States Attorneys’ Offices and their federal law enforcement partners nationwide.

The locations for Phase II were selected by unanimous consensus of the Federal Enforcement Working Group after a rigorous, competitive and nationwide selection process. The group includes subject matter experts from the Department of Justice (including the Civil Rights Division’s Human Trafficking Prosecution Unit, the Executive Office of U.S. Attorneys and the FBI’s Civil Rights Unit); the Department of Homeland Security (including ICE and Homeland Security Investigations’ Human Smuggling and Trafficking Unit); and the Department of Labor (including the Office of the Inspector General and the Wage and Hour Division).

The Attorney General has declared efforts to bring human traffickers to justice and to restore the lives of human trafficking survivors be among the highest priorities of the Department of Justice.

The Eastern District of California has an accomplished history of prosecuting cases involving the sex trafficking of minors. Recent developments in such cases include: On December 14, 2015, Tyrell Richmond, 33, of Visalia, pleaded guilty to sex trafficking of a minor. On September 10, 2015, a federal grand jury in Sacramento charged Jeremy Ray Warren, 22, of Vallejo, and Alyssa Tegan Brulez, 22, of Vacaville, with sex trafficking of children, and brought a separate indictment charging Jarrail Lamont Smith, 23, of Cleveland, Ohio, with transportation of minors with intent to engage in prostitution. On August 24, 2015, Javier Solis, 30, of Fresno, was sentenced to 11 years and nine months in prison for sex trafficking of a minor. On August 18, 2015, Michael Anthony Andrade, 35, of Fresno, was sentenced to 12 years and seven months in prison for sex trafficking of a minor.

FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Carlos Gerardo Blanco, 25; Salvador Morales, 26; Jose Alejandro Jacobo, 23; Josefina Blanco, 23; Justin Alan Rivera, 20; and Henry Polin Morales III, 20 all residents of Bakersfield, charging them with conspiracy to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, from November 1, 2014, to December 9, 2015, the defendants conspired to distribute pound quantities of methamphetamine in and outside the Bakersfield area.

This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Kern County Sheriff’s Office, the Bakersfield Police Department, and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney is prosecuting the case.

If convicted, Carlos Gerardo Blanco, Salvador Morales, and Jacobo face a maximum statutory penalty of life in prison and a $10 million fine. If convicted, Josefina Blanco, Rivera, and Henry Polin Morales III face a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

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.

FRESNO, Calif. — A federal grand jury returned an indictment today charging Javier Haro, 34, of Modesto, with being a felon in possession of a firearm and ammunition, United States Attorney Benjamin B. Wagner announced.

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.

According to court documents, on July 27, 2015, Haro was in possession of a Glock 9 mm handgun, a Smith and Wesson 9 mm handgun and 9 mm ammunition. The indictment alleges that Haro has prior felony convictions.

If convicted, Haro faces a maximum statutory penalty for each count 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. — A federal grand jury returned a two-count indictment today against Dumitru Martin, 55, a Romanian citizen residing in Long Island, New York, and Anamaria Cruceru, 48; Constantin Schiller, 62; and Marcelle Banaga, 40, all of whom reside in Romania, charging them with conspiracy to commit bribery and with bribery of a public official, United States Attorney Benjamin B. Wagner announced.

According to court documents, Martin owns and operates a Romanian company called Polaris M. Holdings (Polaris), and Cruceru, Schiller, and Banaga are employees. From October 2014 through December 2015, Martin, Cruceru, Schiller, and Banaga conspired with each other to bribe a United States Air Force (USAF) contracting officer in connection with the awarding of multimillion dollar contracts to Polaris. The defendants offered to pay the contracting officer a bribe, which they called a “commission,” equal to 10 percent of the amount of the contract. The defendants also suggested that the contracting officer use a fictitious consulting contract and other commercial contracts and documents to conceal payment of the bribe.

In July 2015, the defendants caused Polaris to submit a bid to the USAF to supply storage containers to the Mihail Koglaniceanu Air Base in Romania. In September 2015, Martin traveled to Travis Air Force Base in Fairfield, California to sign the documents relating to the bid as well the fictitious contracts meant to conceal the bribe payment. Thereafter, as part of the conspiracy, the defendants caused a $100,000 wire transfer from Romania to a bank account in the United States as payment to the USAF contracting officer. Unbeknownst to the defendants, the USAF contracting officer was working with federal law enforcement and there was no contract to be awarded to Polaris.

“Attacking corruption and collusion in federal contracting is important both to ensure the integrity of federal programs and to protect taxpayer dollars,” U.S. Attorney Wagner said. “Working with the FBI and our other law enforcement partners, we will continue to root out and prosecute those who attempt to corruptly influence federal contracting officials.”

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Michael Beckwith and Todd Pickles are prosecuting the case.

Martin was arrested and is currently in custody in Sacramento. The remaining defendants reside in Romania, and the U.S. Department of Justice will initiate requests for their extradition.

If convicted, the defendants each face a maximum statutory penalty of five years in prison on the conspiracy charges and 15 years in prison for the bribery count, as well as a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — One defendant pleaded guilty today and two are sentenced for a plot that brought three Florida men to Yuba City where they robbed marijuana traffickers at gunpoint, United States Attorney Benjamin B. Wagner announced.

Clorenzo Griffin, 38, of Fort Lauderdale, Florida, pleaded guilty today to conspiring to commit a robbery. As part of this plea agreement, he admitted that he planned, financed, and participated in the robbery of marijuana from drug dealers. As also stated in his plea agreement, Griffin is a deputy U.S. Marshal from Florida.

Griffin’s co-conspirators had earlier entered guilty pleas in the case and have now been sentenced. Last week, United States District Judge Kimberly J. Mueller sentenced Andre Jamison, 40, of Miami, Florida, to seven years and three months in prison and, today, Judge Mueller sentenced crew member Rodney Rackley, 24, of Miami, Florida, to six years in prison. In sentencing Jamison and Rackley, Judge Mueller noted that the brandishing of firearms in connection with the robbery was extremely serious criminal conduct.

According to court documents, on October 11, 2014, a CHP officer in Sutter County attempted to stop a speeding Jeep Patriot. The three defendants eventually abandoned the vehicle in a parking lot on Starr Drive and fled on foot. The defendants were subsequently taken into custody with the assistance of the Sutter County Sheriff’s deputies. At the time of his arrest, Griffin possessed a loaded .40-caliber firearm. Court documents further indicate that before fleeing from the CHP, Griffin, Rackley and Jamison wearing police ballistic vests, had brandished firearms in order to rob three individuals of approximately 24 pounds of marijuana. The robbery took place in the parking lot of a hotel off State Route 99 in Yuba City.

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

Griffin’s sentencing date is set for March 9, 2016. The plea agreement contemplates a sentence range of 10 to 12 years in prison. The actual sentence, however, will be determined at the discretion of the court at the hearing.

FRESNO, Calif. — On Monday, United States District Judge Lawrence J. O’Neill sentenced five Fresno residents for violations of federal firearm laws, United States Attorney Benjamin B. Wagner announced.

The defendants previously pleaded guilty in five separate cases. The cases were the product of investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Fresno Police Department. The investigations are part of Project Safe Neighborhoods, which is a joint initiative to combat gang and gun violence. Assistant U.S. Attorney Kimberly Sanchez prosecuted the cases.

Richard Diaz, 27, was sentenced to four years and nine months in prison for being a felon in possession of a firearm.

Jose Munoz Ramirez, 25, was sentenced to time served (six months in prison) for being a felon in possession of a firearm.

Ernie Rodriguez, 39, was sentenced to six years and six months in prison for being a felon in possession of a firearm.

Javier Lamadrid, 33, was sentenced to three years and 10 months in prison for being a felon in possession of a firearm.

Andrew Cortez, 33, was sentenced to 10 years in prison for possession of a firearm in a school zone.

“ATF, in partnership with the FBI, the Fresno Police Department and the United States Attorney’s Office, continues to target armed criminals in an effort to help rid the community of its most violent offenders,” said ATF Special Agent in Charge Jill A. Snyder.

“The FBI is committed to working with the Safe Streets Task Force and Project Safe Neighborhoods to identify and investigate those who present a significant threat to the safety of our community,” said Supervisory Special Agent Robert Guyton of the Fresno Resident Agency of the Sacramento FBI. “We thank the ATF and Fresno Police Department for their continued partnership in the effort to reduce violent crime in Fresno.”

“Removing violent and armed criminals from our community is our top priority. Thanks to Project Safe Neighborhoods and our partnership with the U.S. Attorney's Office, these defendants will not be allowed to victimize members of our community for many years,” said Fresno Police Chief Jerry Dyer.

FRESNO, Calif. — Three Bakersfield men were sentenced in two separate cases on Monday by United States District Judge Lawrence J. O'Neill for conspiracies to traffic marijuana and methamphetamine, United States Attorney Benjamin B. Wagner announced.

In the first case, Baltazar Castenada Garcia, 25, was sentenced to 10 years and one month in prison for conspiring to possess methamphetamine and conspiring to cultivate and distribute marijuana. According to court documents, Garcia grew marijuana for distribution at his residence in Bakersfield and at a second Bakersfield residence. Additionally, Garcia sold methamphetamine with the assistance of his co-defendants, using a residence in Arvin to store and package controlled substances for distribution.

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, Kern County Sheriff’s Office, and Kern County Probation Department. Assistant United States Attorney Laurel J. Montoya prosecuted the case.

In the second case, Guillermo Magallanes, 36, who pleaded guilty to conspiracy to distribute methamphetamine, received a sentence of seven years in prison, and Pasqual Gonzales Magallanes, 44, who pleaded guilty to distribution of methamphetamine, received a sentence of 10 years and one month in prison.

According to court documents, these defendants conspired with Juan Lascano Jr., 32, of Bakersfield, to distribute pound quantities of methamphetamine in the Bakersfield area. Judge O’Neill also ordered the forfeiture of $31,242, a 2014 Lexus IS250 F Sport and a 2012 Acura TL sedan as proceeds of the illegal drug trafficking activity. On October 19, 2015, co-defendant  Lascano was sentenced to 10 years in prison for his role in the case.

This case was the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant United States Attorney Brian Delaney prosecuted the case.

SACRAMENTO, Calif. —Jeffrey Lamson, 51, of El Dorado Hills, was sentenced today to two years and six months in prison for wire fraud in connection with a scheme to embezzle money from his former employer, United States Attorney Benjamin B. Wagner announced.

According to court documents, from at least 2009 through 2011, Lamson embezzled over $400,000 from a company in Placer and Sacramento Counties while he served that company as controller. Lamson used company funds to make unauthorized payments to himself and others and made payments to a fictitious vendor, controlled by Lamson, for services that were never performed. Lamson was ordered to pay over $400,000 in restitution for his fraudulent conduct.

Lamson was sentenced by United States District Court Judge John A. Mendez. During sentencing, Judge Mendez observed, “You are a contradiction. You work hard, you seem to be intelligent. I don’t understand why you did what you did. It’s puzzling to me.”

This case was the product of an investigation by the Internal Revenue Service-Criminal Investigation and its Financial Crimes Task Force. Assistant United States Attorneys Shelley D. Weger and Jean M. Hobler are prosecuting the case.

FRESNO, Calif. — Tyrell Richmond, 33, of Visalia, pleaded guilty today to sex trafficking a minor, United States Attorney Benjamin B. Wagner announced.

According to court documents, on June 21, 2014, FBI’s Fresno Child Exploitation Task Force and members of the Fresno Police Department’s Vice Unit conducted undercover operations targeting prostitutes who appeared to be underage. During the investigation, they detained three 16-year-old girls, all of whom were runaways, at a motel in Fresno. Further investigation revealed that Richmond had prostituted the girls for about one week, first in Visalia and then in Fresno. Richmond collected all of the money received by the girls, and did not permit them to leave their motel rooms, other than to get ice.

Richmond is scheduled to be sentenced on March 28, 2016. He faces a sentence of between 10 years and life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the Federal Bureau of Investigation, the Visalia Police Department, and the Fresno Police Department. Assistant United States Attorney Michael Frye is prosecuting the case.

FRESNO, Calif. —Ezequiel Armas-Ortiz (Armas), 49, of Michoacán, Mexico, was sentenced today to two years in prison by U.S. District Judge Lawrence J. O’Neill for conspiring to manufacture, distribute and possess with intent to distribute, manufacturing, and possessing with intent to distribute marijuana in connection with a large-scale cultivation operation on public land, United States Attorney Benjamin B. Wagner announced.

According to court documents, Armas and co-defendant Macedonio Madrigal-Herrera (Madrigal), 44, also of Mexico, were responsible for watering 2,719 marijuana plants in the Brush Creek drainage of in the Sequoia National Forest in Tulare County. The marijuana cultivation activities caused extensive damage to the public land and natural resources. Zinc phosphide, a toxic pesticide from Mexico, was found at the site, along with fertilizer and trash. Trees and plants, newly generated following the 2002 McNally Fire, were cut down to make room for the marijuana. Water was diverted from a nearby stream that supports trout. Armas was also ordered to pay $4,200 in restitution to the U.S. Forest Service for the damage caused by his wrongful conduct.

Armas pleaded guilty on October 19, 2015. Madrigal is scheduled for a status conference in federal court in Fresno on January 19, 2016. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

FRESNO, Calif. — Christopher Michael Whitacre, 50, of Hanford, pleaded guilty today to theft in a special maritime or territorial jurisdiction, United States Attorney Benjamin B. Wagner announced.

According to court documents, between January 1, 2011, and July 31, 2013, Whitacre, who was a supervisor at an auto service center at the Naval Air Station in Lemoore, stole approximately $111,900 in cash from the center. Whitacre stole the cash incrementally by accepting money from customers who purchased gasoline at the gas pump but then entering a lower amount for the transaction and pocketing the difference. He changed the dates or amounts of gasoline delivered to the center to cover up the discrepancy between the actual amount of gasoline that was sold and the amount of gasoline purported to be sold through cash register transaction records.

This case is the product of an investigation by the Navy Criminal Investigation Service. Assistant United States Attorney Mia A. Giacomazzi is prosecuting the case.

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

FRESNO, Calif. — Aseel Al-Saber, 24, of Fresno, pleaded guilty today to one count of conspiring to structure cash transactions, United States Attorney Benjamin B. Wagner announced.

According to court documents, Al-Saber and seven co-defendants opened and maintained bank accounts for the purpose of funneling cash proceeds of marijuana that had been shipped from Fresno and other cities in California and sold in Florida and other states. Al-Saber’s bank account was used to deposit and withdraw more than $72,000 of marijuana trafficking proceeds in amounts of $10,000 or less to prevent Currency Transaction Reports from being filed by the banks, which are prepared for any transaction over $10,000 in cash. In addition, Al-Saber recruited two other individuals to have more than $30,000 in proceeds of marijuana trafficking funneled through their respective bank accounts. In total, members of the conspiracy structured transactions involving more than $7.5 million in drug trafficking proceeds.

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

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

On February 11, 2015, Chad Riffle, 23, of Citrus Springs, Florida, was sentenced to five years in prison after pleading guilty to the structuring conspiracy. Jeremy Michael Murphy, 26, of Monroe, Ohio; Peter Capodieci, 24, of Crystal River, Florida; Miguel Gonzalez, 32, of Fresno; and Bree Benson, 21, of Citrus Springs, Florida, have pleaded guilty to conspiring to structure financial transactions and are awaiting sentencing.

Charges remain pending against Brandon Michael Thomas, 25, of Fresno, and. Ashley Starling Thomas, 28, of Lake Charles, Louisiana. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Al-Saber is scheduled to be sentenced by United States District Judge Lawrence J. O’Neill on March 28, 2016 at 8:30 a.m. The maximum statutory penalty for conspiracy to structure is 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.

FRESNO, Calif. — A federal grand jury returned a 13-count indictment today against Juan Carranza, 23; Jose Carranza-Pompa, 57; Lorenzo Carranza-Pompa, 48; and Maria Carranza, 44, all of Modesto, charging them with a conspiracy to distribute and possess with intent to distribute cocaine, heroin, and methamphetamine; distribution of cocaine; distribution of methamphetamine; distribution of heroin; and possession with intent to distribute heroin, United States Attorney Benjamin B. Wagner announced.

According to the indictment, from February 9, 2014, to December 2, 2015, the defendants conspired to distribute cocaine, heroin, and methamphetamine in Modesto. Each defendant is alleged to have sold narcotics on multiple occasions throughout that time period. The defendants were arrested on December 2, 2015, in Modesto.

This case is the product of an investigation by the Modesto Police Department Gang Unit, the Modesto Narcotics Enforcement Team, the Stockton Police Department, the Ceres Police Department, the Stanislaus Drug Enforcement Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Melanie Alsworth and Daniel Griffin are prosecuting the case.

If convicted, Juan Carranza, Jose Carranza-Pompa and Lorenzo Carranza-Pompa face a statutory penalty of five to 40 years in prison, and a $5 million fine. Maria Carranza faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — William G. Green, 49, of Sacramento, was sentenced today by United States District Judge Kimberly J. Mueller to 20 months in prison and ordered to pay restitution to the IRS for assisting in the preparation of false tax returns, United States Attorney Benjamin B. Wagner announced.

According to court documents, while Green prepared tax returns at a Sacramento business called “Will the Tax Man” from 2007 to at least April 2011, he knowingly placed false information on his clients’ returns to increase their refunds or reduce their taxes owed. The false information that Green added included false charitable contributions in large round numbers to charities like Goodwill Industries, AMVETS, and United Cerebral Palsy, and other deductions and credits related to education and business expenses. The false deductions and credits were not based on information provided by Green’s clients, and Green typically did not inform his clients that these false deductions and credits had been added. Green’s conduct resulted in a total tax loss of approximately $482,000.

This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Christopher S. Hales prosecuted the case. Trainer

SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announced today that the U.S. Attorney’s Office for the Eastern District of California collected over $121 million in civil and criminal actions, including forfeitures, in Fiscal Year 2015, which ended on September 30, 2015. Over $65 million was collected in criminal and civil actions handled solely by the U.S. Attorney’s Office for the Eastern District of California, including over $5.57 million in criminal actions and over $59.69 million in civil actions.

Additionally, the office worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $34.7 million in cases pursued jointly with these offices, almost all in civil actions. Collections in civil and criminal cases handled by the office, not including forfeitures, therefore totaled over $99.9 million.

Additionally, the U.S. Attorney’s office in the Eastern District of California, working with partner agencies and divisions, collected over $21 million in asset forfeiture actions in FY 2015. Total civil and criminal collections including forfeitures, therefore, exceeded $121 million. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.

Attorney General Loretta E. Lynch announced on December 3, 2015, that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending September 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 94 U.S. Attorney’s offices and the main litigating divisions in that same period.

"The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”

“This past year was the second-highest in the history of this office in terms of total collections for the taxpayer,” said U.S. Attorney Wagner. “Every year, attorneys in this office recover far more than it costs to operate the office, while stripping criminals and wrongdoers of ill-gotten gains, proceeds of fraud or false claims, and securing restitution for victims.”

Major recoveries by the U.S. Attorney’s Office for the Eastern District of California in civil cases this year included a $44 million settlement with the Iron Mountain records management company and a $2 million settlement with Composite Engineering Inc., both False Claims Act cases relating to pricing and costs in federal contracts. Quest Diagnostics paid $1.79 million to settle claims that it violated the False Claims Act by submitting duplicative claims to Medicare for certain venipuncture services and diagnostic tests and certain panel tests. In two cases alleging that doctors improperly billed Medicare for drugs they administered that were not approved by the FDA, the doctors paid a total of $1.3 million. Sierra Pacific Industries paid $6 million in installment payments required under the terms of its settlement agreement in a large wildfire case that damaged National Forest lands, which was resolved in 2012.

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.

The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

FRESNO, Calif. — Two Fresno residents, Daniel Miranda, 26, and Roberto Martinez Jr., 34, were sentenced today for conspiring to commit mail fraud, bank fraud, and wire fraud, and for aggravated identity theft, United States Attorney Benjamin B. Wagner announced. Miranda was sentenced by Senior United States District Judge Anthony W. Ishii to seven years and 10 months in prison, and Martinez was sentenced to three years in prison.

According to court documents, from about June 2012 to January 2014, Miranda and Martinez, along with co-conspirators Lilliana Gonzales and Viririana Hernandez, obtained personal information from victims through various methods. Without the victims’ permission, they opened credit card accounts in the victims’ names or added themselves as “authorized users” of the victims’ existing accounts. The conspirators then used the accounts to buy goods and services at locations throughout the Fresno area, as well as in Modesto and in Riverside County.

In total, the four conspirators misused the personal information of approximately 250 victims and attempted fraudulent credit card charges of over $1.2 million.

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

This case is the product of an investigation by the United States Postal Inspection Service, the Treasury Inspector General for Tax Administration, and the Fresno Police Department. Assistant United States Attorney Michael G. Tierney is prosecuting the case.

Hernandez previously pleaded guilty to conspiracy and aggravated ID theft, and was sentenced to four and a half years in prison on November 2, 2015. Gonzales previously pleaded guilty to conspiracy and aggravated ID theft, and is scheduled to be sentenced on January 11, 2016. She faces a maximum statutory penalty of 30 years in prison and a $1 million fine on the conspiracy charge, and an additional two years 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.

FRESNO, Calif. — Efrain Lozada Rosas, 34, and Victor Flores Fuentes, 39, both of San Jose, and Jesus Cuevas Lopez, 25, of Southern California, pleaded guilty today before U.S. District Judge Lawrence J. O’Neill to conspiring to commit criminal copyright infringement and commit related crimes, United States Attorney Benjamin B. Wagner announced. Another co-defendant, Edgar Hipatl Rodriguez, 36, of San Jose, was sentenced today by Judge O’Neill to two years and three months in prison for his role in the counterfeit media conspiracy.

According to court documents, on March 13, 2015, warehouse and office space used by the defendants were found to contain tens of thousands of 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.

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 United States Attorney Henry Z. Carbajal III is prosecuting the case.

Ten defendants were indicted in March 2015 in connection with the counterfeit media operation. Eight of the defendants have pleaded guilty to various charges. Two remaining defendants, Miguel Angel Gomez Rebolledo, 35, and Antonio Morales, 32, of San Jose, are scheduled for trial in March 2016. The charges against these remaining two defendants are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Rosas, Fuentes and Cuevas Lopez are scheduled to be sentenced by Judge O'Neill on April 4, 2016. They face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — United States District Judge Lawrence J. O’Neil sentenced Mark Threet, 52, of Modesto, today to two years in prison for making a false claim for a tax refund, United States Attorney Benjamin B. Wagner announced.

According to court documents, Threet filed more than 850 false tax returns for himself and others for the tax years 2008 to 2010. Each return included false statements regarding income, tax credits, and refund amounts. In sum, the returns claimed more than $620,000 for these false tax refunds. He received approximately $270,000, and has been ordered to pay restitution.

This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Patrick R. Delahunty is prosecuting the case.

FRESNO, Calif. — Gevorg Meroyan, 35, of Los Angeles, was sentenced today by United States District Judge Lawrence J. O'Neill to two years in prison for conspiracy to traffic in counterfeit credit cards and credit card fraud, United States Attorney Benjamin B. Wagner announced.

On November 16, 2015, co-defendant David Manukyan, 39, of Sacramento, was sentenced by Judge O’Neill to serve one year and one day in prison.

Both defendants pleaded guilty in July 2015. According to court documents, Meroyan conspired from 2009 to 2011 to produce, use, and traffic in counterfeit credit cards from the Los Angeles area to Sacramento. In 2009, Meroyan and Manukyan were caught in Fresno with 42 counterfeit cards bearing false names and with computer and other electronic equipment that can be used to manufacture counterfeit credit cards. In 2011, Meroyan was arrested in Los Angeles after attempting to buy auto parts with a counterfeit credit card.

This case was the product of an investigation by the Federal Bureau of Investigation, Fresno County Sheriff, and California Highway Patrol. Assistant United States Attorney Matthew G. Morris prosecuted the case.

Meroyan was ordered to surrender to the Bureau of Prisons on February 8, 2016, to begin serving his sentence. Manukyan was previously ordered to surrender to the Bureau of Prisons on January 5, 2016, to begin his sentence.

SACRAMENTO, Calif. -- After a 16-day trial, a federal jury today found Vera Kuzmenko, 45, of Loomis, and Rachel Siders, 40, of Roseville, guilty of multiple counts of mail and wire fraud associated with their involvement in a mortgage fraud scheme that cost financial institutions over $16 million, United States Attorney Benjamin B. Wagner announced.

Vera Kuzmenko was also found guilty of witness tampering and money laundering associated with the scheme.

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

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

Rachel Siders ran the Rocklin office of the escrow company used on the majority of the transactions. She helped funnel millions of dollars to the defendants, which was not disclosed to the lenders.

“Vera Kuzmenko was a major figure in a network of fraudsters responsible for a wave of mortgage fraud that hit the Sacramento area,” said U.S. Attorney Benjamin B. Wagner. “As the guilty verdicts in this case demonstrate, mortgage fraudsters who believe they can escape accountability for their crime by blaming others and offering false alibis are mistaken.”

“Vera Kuzmenko and her associates intentionally victimized their community, abusing trust to significantly damage the financial wellbeing of victims and negatively impact regional economy. This greed-fueled, multimillion dollar fraud scheme had a lasting, negative effect on the regional real estate market,” said Assistant Special Agent in Charge Manuel Alvarez of the FBI’s Sacramento field office. “We hope today’s verdict serves as a warning to would-be fraudsters that the FBI will aggressively pursue perpetrators of large, complex financial fraud to protect regional economies and ensure justice for their victims.”

“Mortgage fraud is an incredibly destructive crime that leaves many victims in its wake,” said IRS-Criminal Investigation Acting Special Agent in Charge, Andrew Toth. “The impact on homeowners and communities is devastating. While this verdict cannot reverse the damage caused by these defendants, it highlights the ongoing commitment of IRS-CI to hold accountable those involved in these types of crimes.”

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

The defendants are scheduled to be sentenced by United States District Judge John A. Mendez on March 15, 2016. Each defendant faces a maximum statutory penalty of 20 years in prison on each of their counts of conviction for wire and mail fraud. Vera Kuzmenko faces an additional 20 years for each count of conviction for witness tampering and money laundering. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

On October 20, 2015, Judge Mendez sentenced co-defendants Peter Kuzmenko, 37, of West Sacramento, to 19 years in prison; Aaron New, 41, of Sacramento, to 11 years and three months in prison; Nadia Kuzmenko, 36, formerly of Loomis, to eight years in prison; and Edward Shevtsov, 51, of North Highlands, to eight years in prison. They were found guilty on February 13, 2015, after a 21-day trial, of multiple counts of mail and wire fraud associated with the mortgage fraud scheme. In addition, Peter Kuzmenko, Edward Shevtsov, and Aaron New were found guilty of money laundering associated with the scheme, and Nadia Kuzmenko was found guilty of witness tampering.

SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner is pleased to be in attendance at a summit today hosted by the White House and the Department of Justice in Washington, D.C. called “A Cycle of Incarceration: Prison, Debt and Bail Practices.” This event was designed to bring public attention to the disproportionate impact that high fines and fees in the criminal justice system have on the poor. The White House Council of Economic Advisers also released an issue brief exploring the economic inefficiency of fines, fees and bail in particular situations as well as the disproportionate impact such sanctions can have on the poor.

U.S. Attorney Wagner stated, “The inability of many poor people to pay high fines, fees and bail for minor infractions can have disastrous consequences both for them and for society. For individuals, it can result in the loss of a driver's license, the loss of a job, increasing debt, incarceration and a criminal record. For society, it can lead to costly incarceration of many indigent persons for minor offenses. This conference is focused on identifying and reforming the complex web of practices within the criminal justice system that can trap the poor in a cycle of noncompliance and punishment, in order to create a fairer and more efficient justice system.”

Today’s event follows an event the Justice Department hosted on Wednesday that addressed the effect and fairness of fees and fines. The department convened judges, academics and practitioners to develop a research and policy agenda that will inform jurisdictions in their efforts to reform court practices.

Participants in the conference heard from judges, court administrators, academics, experts and others about the impact of excessive fines and fees in minor cases, and various efforts to reform justice systems, including in California. Three citizens described years of entanglement with the justice systems of Alabama, Michigan and Missouri, including suspended drivers licenses, lost jobs, incarceration and homelessness, all originating from unpaid fines for minor infractions.

Additional information about this issue can be found at http://go.usa.gov/cBahC.

SACRAMENTO, Calif. — Patricia Jane Albright, 64, of Nevada City, was sentenced by United States District Judge Troy L. Nunley to five years and five months in prison for conspiring to manufacture marijuana, manufacturing marijuana, and structuring currency transactions to evade federal reporting requirements, United States Attorney Benjamin B. Wagner announced.

On July 21, 2015, Albright pleaded guilty to the charges. Albright’s son and co‑conspirator, Jordan Wirtz, 29, previously pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime, for possessing a loaded Northern England 12 gauge shotgun and ammunition in his residence at the grow site. On February 26, 2015, Judge Nunley sentenced him to five years in prison.

According to court documents, between 2008 and September 2010, Albright and others manufactured marijuana on two properties she owned near Nevada City and Georgetown. Marijuana from Albright’s operation was regularly shipped out of state under fake names and addresses. At the time of her arrest on September 28, 2010, investigators found marijuana plants, cash, processed marijuana, and two firearms.

When Albright purchased the property near Georgetown in 2008 for growing marijuana, she structured 21 cash transactions at six different financial institutions over three days so she could avoid federal reporting requirements related to cash deposits.

This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation; the U.S. Drug Enforcement Administration; the California Department of Justice; the Grass Valley Police Department, and the sheriff’s offices of Nevada County, Placer County, and El Dorado County. Assistant United States Attorneys Michael M. Beckwith and Justin Lee prosecuted the case.

During the course of the investigation which involved the execution of 16 search warrants in three different counties, law enforcement seized over 4,100 marijuana plants, over 200 pounds of processed marijuana, and numerous firearms. A number of the defendants were armed at the time of their arrest, and several of the defendants had prior felony convictions for narcotics offenses. One defendant was arrested in a marijuana grow with a firearm while on pretrial release from an earlier arrest. He was facing charges for manufacturing marijuana in Southern California in 2009. Documents and items found at a number of the search locations show hundreds of thousands of dollars in financial transactions, and the interstate shipment of cash and narcotics.

FRESNO, Calif. — After a three–day trial, a federal jury found Lloyd George Kenney, 65, of San Jose, guilty today of armed bank robbery, using a firearm during a crime of violence, and of being felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.

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

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

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

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

Kenney is scheduled to be sentenced by United States District Judge Anthony W. Ishii on March 14, 2016. Kenney faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Today, United States District Judge Troy L. Nunley sentenced DuWayne LeDoux, 55, of Kodiak, Alaska, to seven years in prison for possession with intent to distribute methamphetamine and conspiracy to structure cash deposits, United States Attorney Benjamin B. Wagner announced.

According to court documents, LeDoux enlisted Sacramento resident Jennifer MacDougal, 45, to obtain and ship methamphetamine and crack cocaine to LeDoux at various addresses in Kodiak and under various names, so that LeDoux could sell the drugs. LeDoux paid for the drugs by depositing cash into a Wells Fargo account held by MacDougal in amounts designed to avoid bank reporting requirements.

Kodiak, Alaska is on Kodiak Island off the southern coast of Alaska. The island has a total of approximately 14,000 residents, with approximately 6,000 of them in Kodiak.

Co-defendant MacDougal pleaded guilty in November 2012, and was sentenced to five years in prison.

This case is the product of an investigation by the Drug Enforcement Administration and the Internal Revenue Service’s Financial Crimes Task Force. Assistant United States Attorneys Jason Hitt and Jean M. Hobler are prosecuting the case.

SACRAMENTO, Calif. — U.S. District Judge Kimberly J. Mueller sentenced Breneth L. Chase, 44, of Stockton, today to four years and 10 months in prison for bank fraud, aggravated I.D. theft, and possession of counterfeit I.D. documents, United States Attorney Benjamin B. Wagner announced.

According to court documents, Chase and others obtained U.S. mail and postal keys stolen during burglaries of post offices in Sutter County and Sacramento County. She used the stolen mail to manufacture checks and identification documents to cash phony checks, apply for lines of credit, and make purchases at local department stores. According to court documents, Chase possessed over five different manufactured identifications including U.S. Military identifications and badges. Chase admitted that she possessed personal and financial information for numerous Sutter and Sacramento County residents.

San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated: “Postal Inspectors work closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those individuals responsible for thefts of mail, postal property and complex financial crimes committed against the public and the Post Office.”

This case was the product of an investigation of the United States Postal Inspection Service, Sutter County Sheriff's Office, Stockton Police Department, and Sutter Creek Police Department, with the assistance from the Sacramento County Sheriff's Office. Assistant United States Attorney Michelle Rodriguez prosecuted the case.

SACRAMENTO, Calif. — Nicholas Michael Teausant, 22, of Acampo, pleaded guilty today to attempting to provide material support or resources to a foreign terrorist organization, announced Assistant Attorney General for National Security John P. Carlin and United States Attorney Benjamin B. Wagner.

According to court documents, on March 17, 2014, Teausant was arrested near the Canadian border en route to Canada with the intent of continuing to travel to Syria to join the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization. On March 26, 2014, Teausant was indicted on one count of attempting to provide material support or resources to a terrorist organization. He pleaded guilty to the single count in the indictment without a plea agreement. Teausant is scheduled to be sentenced by United States District Judge John A. Mendez on March 8, 2016.

“Nicholas Michael Teausant attempted to travel overseas to join ISIL and to provide material support to the terrorist organization,” said Assistant Attorney General Carlin.  “The National Security Division’s highest priority is counterterrorism, and we are committed to stemming the flow of foreign fighters abroad and holding accountable those who attempt to provide material support to designated foreign terrorist organizations.”

“This case, like others in communities across the United States and around the world, is an example of how a young person from any place and any background might make the terrible decision to try and become part of a terrorist organization,” U.S. Attorney Wagner stated. “Fortunately, the FBI intervened in this case before any harm could be inflicted upon innocent persons. We hope that this case will be a reminder to us all to stay vigilant and involved in the lives of our youth, and in particular with respect to the dangerous influences they may be subject to on the Internet where these organizations are very active.”

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

Teausant faces a maximum statutory penalty of 15 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.

Nicholas Michael Teausant, 22, of Acampo, California, pleaded guilty today to attempting to provide material support or resources to a foreign terrorist organization, announced Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Benjamin B. Wagner of the Eastern District of California.

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

“Nicholas Michael Teausant attempted to travel overseas to join ISIL and to provide material support to the terrorist organization,” said Assistant Attorney General Carlin.  “The National Security Division’s highest priority is counterterrorism, and we are committed to stemming the flow of foreign fighters abroad and holding accountable those who attempt to provide material support to designated foreign terrorist organizations.”

“This case, like others in communities across the United States and around the world, is an example of how a young person from any place and any background might make the terrible decision to try and become part of a terrorist organization,” said U.S. Attorney Wagner.  “Fortunately, the FBI intervened in this case before any harm could be inflicted upon innocent persons. We hope that this case will be a reminder to us all to stay vigilant and involved in the lives of our youth, and in particular with respect to the dangerous influences they may be subject to on the Internet where these organizations are very active.”

Teausant is scheduled to be sentenced by U.S. District Judge John A. Mendez of the Eastern District of California on March 8, 2016.  Teausant faces a maximum statutory penalty of 15 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 the product of an investigation by the FBI, the Modesto, California, Police Department and the San Joaquin, California, Sheriff’s Office, who are members of the Modesto/Stockton Joint Terrorism Task Force, with significant assistance from U.S. Customs and Border Protection.  The case is being prosecuted by Assistant U.S. Attorneys Jean M. Hobler and Jason Hitt of the Eastern District of California and Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section.

FRESNO, Calif. — Rozelle Summerise, 39, of Fresno, was sentenced today by United States District Judge Anthony W. Ishii to 30 years in prison for nine armed robberies, United States Attorney Benjamin B. Wagner announced.

According to court documents, during a one-month period in the fall of 2012, Summerise committed armed robberies of Kmart in Clovis, Check N’ Go in Madera, and the following businesses in Fresno:  CVS, Check N’ Go (twice), Foods Co., Crossland Economy Motel, Arco Minimart, and Motel 6. A search of Summerise’s residence uncovered several items used in the robberies including a revolver and a wig.

ATF Special Agent in Charge Jill A. Snyder stated, “ATF remains committed to reducing violent crime in our community by targeting those who use firearms to potentially harm our citizens. We will continue to work closely with our partners at the Fresno Police Department and the US Attorney’s Office to remove violent offenders from the community.” 

Fresno Police Chief Jerry Dyer stated: “Removing Summerise from society before he killed one of his robbery victims was a top priority for our agency and could not have been done without the incredible teamwork of local law enforcement, ATF and the U.S. Attorney’s Office.”

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Fresno Police Department. This was a collaborative effort as part of Project Safe Neighborhoods, a joint effort among local, state and federal law enforcement authorities aimed at reducing gang and gun violence. Assistant United States Attorneys Kimberly A. Sanchez and Melanie Alsworth prosecuted the case.

FRESNO, Calif. — Jose Valadez Jr., 35, of Patterson, was sentenced today to nearly 10 years in prison today for an armed bank robbery, United States Attorney Benjamin B. Wagner announced.

United States District Judge Anthony W. Ishii sentenced Valadez to two years and 10 months in prison for armed bank robbery and a consecutive sentence of seven years in prison for brandishing a firearm during a crime of violence.

According to court documents, on June 19, 2014, Juan Carlos Reyes, 25, of Tracy, and Valadez robbed the Wells Fargo Bank located inside the Save Mart Supermarket in Patterson. Customers and employees were held at gunpoint as Reyes instructed tellers to “open the drawers” and demanded that money be placed in a bag. Reyes and Valadez fled the area separately with law enforcement in pursuit. Valadez was arrested shortly thereafter and assisted officers in locating the firearm and clothing he discarded after fleeing the scene of the robbery.

Officers located a firearm, clothing and the money stolen from the bank in another location. DNA evidence from the clothing provided law enforcement with Reyes’ identity. Reyes was arrested on October 11, 2014, in Manteca. Reyes pleaded guilty and was sentenced on October 19, 2015, to two years and six months in prison for armed bank robbery, and a consecutive sentence of seven years in prison for brandishing a firearm during a crime of violence.

This case was the product of an investigation by the Federal Bureau of Investigation and the Stanislaus County Sheriff’s Office. Assistant United States Attorney Melanie L. Alsworth prosecuted the case.

FRESNO, Calif. -- Jeremy Michael Murphy, 26, of Monroe, Ohio, pleaded guilty today to one count of conspiring to structure cash transactions, United States Attorney Benjamin B. Wagner announced.

According to court documents, Murphy and seven co-defendants opened and maintained bank accounts for the purpose of funneling cash proceeds of marijuana that had been shipped from Fresno and other cities in California and sold in Florida and other states.  Murphy withdrew more than $240,000 in cash proceeds of this marijuana trafficking from his bank accounts in amounts of $10,000 or less to prevent the banks from filing Currency Transaction Reports, which are prepared for any transaction over $10,000 in cash. In total, Murphy and his co-conspirators structured more than $7.5 million of proceeds of drug trafficking.

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

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

On February 11, 2015, Chad Riffle, 23, of Citrus Springs, Florida, was sentenced to five years in prison after pleading guilty to the structuring conspiracy. Peter Capodieci, 24, of Crystal River, Florida; Miguel Gonzalez, 32, of Fresno; and Bree Benson, 21, of Citrus Springs, Florida, have pleaded guilty to conspiring to structure financial transactions and are awaiting sentencing. Charges are pending against Brandon Michael Thomas, 25, of Fresno, California. Ashley Starling Thomas, 28, of Lake Charles, Louisiana; and Aseel Al-Saber, 26, of Orange County, California, are scheduled for trial on April 26, 2016. The charges against Brandon Thomas, Ashley Starling Thomas, and Al-Saber are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Murphy is scheduled to be sentenced by United States District Judge Lawrence J. O’Neill on March 7, 2016. The maximum statutory penalty for conspiracy to structure is 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. — United States District Judge Morrison C. England Jr. sentenced Ryan Costo, 40, of Roseville, to four years and three months in prison for bank fraud in a scheme to defraud lenders, United States Attorney Benjamin B. Wagner announced.

According to court documents, Costo overstated his income and financial assets in connection with a $1.35 million loan from Bank of America related to the acquisition of a classic aircraft. Costo not only made false statements about his income and various bank and stock account balances on the loan application, but also caused various false and fraudulent account statements and tax returns to be given to the Bank of America in order to procure the loan. Costo made various false representations and submitted false documents to obtain three other loans: a $1.95 million loan from CitiMortgage Inc. related to a Granite Bay residence; a $3 million loan from Washington Mutual Bank, now Chase, related to another Granite Bay residence, and a $267,000 loan from San Diego Private Bank. Costo pleaded guilty to bank fraud on October 3, 2013.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Shelley D. Weger prosecuted the case.

SACRAMENTO, Calif. — Darrell Patrick Hinz, 48, of Cameron Park, pleaded guilty today to conspiring to commit mail and wire fraud, conspiring to launder monetary instruments, and filing a false tax return, United States Attorney Benjamin B. Wagner announced.

In August 2012, Hinz, Gregory Scott Baker, 48, of Newcastle, and Bart Wayne Volen, 54, of San Diego and Haiku, Hawaii, were charged with conspiring to commit mail and wire fraud and various money laundering charges as part of a scheme to defraud the United Auburn Indian Community (UAIC) of more than $17 million. In April 2013, a superseding indictment additionally charged Volen and Hinz with filing false tax returns in 2006 and 2007, and charged Baker with filing false tax returns from 2006 through 2009 in connection with the fraud.

According to court documents, between October 2006 and December 2007, Baker, Volen and Hinz executed a scheme to defraud the UAIC. In October 2006, the UAIC hired Volen, a developer, to finish construction on four tribal buildings — a school, a community center, and administrative offices – on UAIC-owned property in Auburn. Volen submitted inflated invoices to the UAIC knowing that Baker and Hinz, both UAIC employees, would approve them based on a kickback agreement the three men had reached earlier. Volen supported his invoices with inflated cost proposals from his general contractor’s company, Sequoia Pacific Builders (SPB), and, at times, inflated invoices from various subcontractors. At Volen’s direction, over 160 SPB cost proposals were fraudulently inflated. Volen’s work on the Indian Hills Office Project began in late 2006 and ended in early 2008. The inflated invoices nearly doubled the cost of the project.

Baker was the UAIC tribal administrator. His duties included overseeing the Indian Hills Office Project. Hinz was a contract employee hired to manage the construction project. Both Baker and Hinz were required to approve all invoices before the UAIC tribal council would sign checks to pay for work done on the project. During the scheme to defraud the tribe, both Baker and Hinz engaged in conduct to insure that the tribal council would pay for the inflated and fraudulent invoices submitted by Volen. They were later paid by Volen for their participation in the scheme. According to court documents, Baker, Volen and Hinz ultimately stole over $17 million from the UAIC through their inflated invoice scheme.

According to court documents, in order to disguise the proceeds of the fraud, Hinz sent a number of fraudulent invoices to Volen for consulting work he claimed he did for Volen. In response, Volen sent Hinz 29 checks, totaling approximately $7.5 million over the course of 10 months. In an effort to further conceal the movement of the fraud proceeds, Volen and Hinz distributed the proceeds between three different companies owned by Hinz.

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

According to court documents, Hinz filed tax returns containing a Schedule C in which he failed to report the income he derived from the scheme. As a result, the United States suffered a tax loss of over $830,000.

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

Hinz is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on February 18, 2016. Baker pleaded guilty to similar charges in this case on November 5, 2015, and is scheduled to be sentenced on March 17, 2016. Co-defendant Volen pleaded guilty to similar charges in this case on June 12, 2014, and is scheduled to be sentenced on April 28, 2016. Chris W. Eatough, the owner of Sequoia Pacific Builders, pleaded guilty to a felony related to this case on June 20, 2013, and is scheduled to be sentenced on March 17, 2016 (case number 2:13-cr-214 TLN). Hinz, Baker and Volen have agreed to pay at least $17 million in restitution to the UAIC.

The defendants face a maximum sentence of 20 years in prison, a $250,000 fine, or twice the value of the gross gain or loss, and a three-year term of supervised release for conspiring to commit mail and wire fraud. The maximum statutory penalty for conspiring to launder monetary instruments is 20 years in prison, a $500,000 fine or twice the value of the laundered money, and a three-year term of supervised release. The maximum statutory penalty for the tax violation is three years in prison, a $100,000 fine, or a fine of twice the value of the gross gain or loss, and a one-year term of supervised release. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Damacio Diaz, 43, of McFarland, California, a detective with the Bakersfield, California, Police Department (BPD), was arrested today, charged with abusing his position of trust as a police detective when he conspired with and assisted a narcotics dealer in the operation of the dealer’s drug organization, announced U.S. Attorney Benjamin B. Wagner of the Eastern District of California, Special Agent in Charge Monica M. Miller of the FBI’s Sacramento Division, DEA Special Agent in Charge John J. Martin, Acting Special Agent in Charge Thomas McMahon of the Internal Revenue Service-Criminal Investigation (IRS-CI) and Bakersfield Police Chief Greg Williamson.  The charges are contained in a 16-count indictment returned by a federal grand jury yesterday.

The indictment charges that Diaz, in exchange for bribes from the dealer, provided the dealer with intelligence on law enforcement practices and activities, disclosed the names and identities of police informants, tipped the dealer off as to police investigations and attempted to provide the dealer protection from search, seizure, arrest and prosecution.  The indictment also charges Diaz with bribery, retaining seized narcotics on multiple occasions for his own unlawful gain, disclosing contents of a wiretap investigation and two counts of filing false tax returns.

Diaz has been on paid administrative leave from the BPD since this investigation was initiated.  He is scheduled to be arraigned today before U.S. Magistrate Judge Jennifer L. Thurston of the Eastern District of California in Bakersfield at 2:30 p.m.

“When a police officer misuses his badge to commit crimes for personal profit, it is the ultimate betrayal of public trust,” said U.S. Attorney Wagner.  “While it is a sad day for the Bakersfield Police Department, the department should be proud of the outstanding work it has done, together with the FBI, DEA, and IRS-CI, effectively investigating this case over the last few months.”

“No one is above the law,” said Special Agent in Charge Miller.  “The alleged criminal activity put law enforcement officers at grave risk and significantly undermines public trust in law enforcement.  The FBI is committed to working with its enforcement partners to root out officers who have abused their trusted role, and we thank the Bakersfield Police Department, DEA and IRS for their assistance with this extensive investigation.”

“The criminal behavior alleged in this case is reprehensible,” said Special Agent in Charge Martin.  “Officers take an oath to protect, serve and uphold the law. Actions like those alleged in the indictment shatter that promise and threaten the safety of fellow officers and the communities we are sworn to protect. DEA is proud to partner with the many law enforcement officers and agencies that won’t stand for criminal conduct within the ranks.”

"Law enforcement officers are held to a higher standard”, said Acting Special Agent in Charge McMahon.  “Having knowledge of the laws, there is an even greater expectation to follow those laws.  When individuals working in an official capacity violate the trust of their communities by abusing that power, they undermine the hard work of the entire law enforcement community.”   

“I am deeply disappointed by the indictment and arrest of Bakersfield Police Detective Damacio Diaz,” said Chief Williamson.  “The behavior and criminal activity stated in the indictment is not reflective of the commitment and awesome public service the over 500 employees of the Bakersfield Police Department provide to our community on a consistent basis.  Detectives from the department’s investigative and internal administrative divisions have worked side by side with the FBI and the U.S. Attorney’s Office during the entirety of this investigation.  I am proud of their work and diligence in first bringing this case forward and seeing it through to completion.”

According to count one of the indictment, from April 18, 2012, to Feb. 20, 2015, Diaz conspired with a narcotics dealer to distribute methamphetamine.  Counts two through four charge Diaz with accepting over $5,000 in bribes in each calendar year of 2012, 2013 and 2014 in return for being influenced and rewarded in connection with his official acts as a BPD police detective.  Counts five through 13 charge Diaz with possession with intent to distribute methamphetamine, wherein Diaz retained methamphetamine for his own personal gain that came into his care and control in the course of his duties as a BPD narcotics detective.  Count 14 charges Diaz with the intentional disclosure of wiretap information in order to obstruct, impede or interfere with a criminal investigation.  The indictment also alleges that Diaz filed false tax returns for tax years 2012 and 2013.

This case is the product of an investigation by the FBI, DEA, IRS-CI and the BPD.  Assistant U.S. Attorneys Brian K. Delaney and Angela Scott of the Eastern District of California are prosecuting the case.

If convicted of the charges in the indictment, Diaz faces a maximum statutory penalty of life in prison for the conspiracy, 10 years in prison for each count of bribery, 20 years in prison to life for possession of methamphetamine with intent to distribute, five years in prison for each count of intentional disclosure of wiretap information, and three years in prison for each count of making a false income tax return.  Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.  The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. 

BAKERSFIELD, Calif. — Damacio Diaz, 43, of McFarland, a detective with the Bakersfield Police Department (BPD) was arrested today, charged with abusing his position of trust as a police detective when he conspired with and assisted a narcotics dealer in the operation of the dealer’s drug organization, announced United States Attorney Benjamin B. Wagner, FBI Special Agent in Charge Monica M. Miller, DEA Special Agent in Charge John J. Martin, IRS-CI Acting Special Agent in Charge Thomas McMahon, and Bakersfield Police Chief Greg Williamson. The charges are contained in a 16-count indictment returned by a federal grand jury yesterday.

The indictment charges that Diaz, in exchange for bribes from the dealer, provided the dealer with intelligence on law enforcement practices and activities, disclosed the names and identities of police informants, tipped the dealer off as to police investigations, and attempted to provide the dealer protection from search, seizure, arrest and prosecution. The indictment also charges Diaz with bribery, retaining seized narcotics on multiple occasions for his own unlawful gain, disclosing contents of a wiretap investigation, and two counts of filing false tax returns.

Detective Diaz has been on paid administrative leave from the Bakersfield Police Department since this investigation was initiated.  He is scheduled to be arraigned today at 2:30 p.m. in Bakersfield before U.S. Magistrate Judge Jennifer L. Thurston.

U.S. Attorney Wagner stated: “When a police officer misuses his badge to commit crimes for personal profit, it is the ultimate betrayal of public trust. While it is a sad day for the Bakersfield Police Department, the department should be proud of the outstanding work it has done, together with the FBI, DEA, and IRS-CI, effectively investigating this case over the last few months.”

“No one is above the law. The alleged criminal activity put law enforcement officers at grave risk and significantly undermines public trust in law enforcement,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation, Sacramento Field Office. “The FBI is committed to working with its enforcement partners to root out officers who have abused their trusted role, and we thank the Bakersfield Police Department, DEA, and IRS for their assistance with this extensive investigation.”

DEA Special Agent in Charge John J. Martin stated, “The criminal behavior alleged in this case is reprehensible. Officers take an oath to protect, serve and uphold the law. Actions like those alleged in the indictment shatter that promise and threaten the safety of fellow officers and the communities we are sworn to protect. DEA is proud to partner with the many law enforcement officers and agencies that won’t stand for criminal conduct within the ranks.”

"Law enforcement officers are held to a higher standard,” said Acting Special Agent in Charge Thomas McMahon, IRS Criminal Investigation. “Having knowledge of the laws, there is an even greater expectation to follow those laws. When individuals working in an official capacity violate the trust of their communities by abusing that power, they undermine the hard work of the entire law enforcement community.”

“I am deeply disappointed by the indictment and arrest of Bakersfield Police Detective Damacio Diaz,” said Bakersfield police Chief Greg Williamson. “The behavior and criminal activity stated in the indictment is not reflective of the commitment and awesome public service the over 500 employees of the Bakersfield Police Department provide to our community on a consistent basis.  Detectives from the department’s investigative and internal administrative divisions have worked side by side with the FBI and the U.S. Attorney’s office during the entirety of this investigation. I am proud of their work and diligence in first bringing this case forward and seeing it through to completion.”

According to count one of the indictment, from April 18, 2012, to February 20, 2015, Diaz conspired with a narcotics dealer to distribute methamphetamine. Counts two through four charge Diaz with accepting over $5,000 in bribes in each calendar year of 2012, 2013 and 2014 in return for being influenced and rewarded in connection with his official acts as a BPD police detective. Counts five through 13 charge Diaz with possession with intent to distribute methamphetamine, wherein, Diaz retained methamphetamine for his own personal gain that came into his care and control in the course of his duties as a BPD narcotics detective. Count 14 charges Diaz with the intentional disclosure of wiretap information in order to obstruct, impede or interfere with a criminal investigation. The indictment also alleges that Diaz filed false tax returns for tax years 2012 and 2013.

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

If convicted of the charges in the indictment, Diaz faces a maximum statutory penalty of life in prison for the conspiracy, 10 years in prison for each count of bribery, 20 years in prison to life for possession of methamphetamine with intent to distribute, five years in prison for each count of intentional disclosure of wiretap information, and three years in prison for each count of making a false income tax return. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Michael Carey Clemans, 55, of Sacramento, charging him with a conspiracy to produce child pornography, production and receipt of child pornography, and the buying of children, United States Attorney Benjamin B. Wagner announced.

According to court documents, beginning in June 2014, Clemans conspired with a woman in the Philippines to produce child pornography. During most of the conspiracy, Clemans resided in Bangkok, Thailand, where he worked as an airline pilot. In April 2015, Clemans returned to his Sacramento residence and continued his overseas conspiracy using his Yahoo! account to chat online with the Filipino woman. In these chats, Clemans discussed various strategies to obtain minor females to engage in sexually explicit conduct. They discussed details of the photo shoots, with Clemans asking for additional photos and expressing his desire to have sex with girls as young as eight years old. Over the course of the conspiracy, Clemans paid thousands of dollars to the woman so she would orchestrate sexually explicit photo shoots of underage girls, buy photographic equipment, and rent discrete photo shoot locations, among other things. The government alleges that on multiple occasions, payments were made to the guardians of children in the Philippines in exchange for temporary custody of the children so that the child pornography could be produced. Clemans was arrested by federal authorities in July 2015.

This case is the product of an investigation by the Federal Bureau of Investigation and the Philippine National Bureau of Investigation. Special Assistant United States Attorney Josh F. Sigal is prosecuting the case.

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

FRESNO, Calif. — Alice Pigg, 63, of Los Banos, was indicted yesterday by a federal grand jury charging her with stealing benefits paid by the United States Social Security Administration (SSA) and concealing material information from the SSA to obtain benefits, United States Attorney Benjamin B. Wagner announced.

According to the indictment, from December 2008 to June 2014, Pigg stole money paid by the SSA by failing to disclose, despite multiple inquiries from the SSA, that she lived with her husband and shared financial resources with her husband. Pigg shared a bank account that received her husband’s salary, which was at least $140,000 a year during the time period in which Pigg stole money from the SSA, and which later received his pension benefit payments. As a result, Pigg obtained SSA benefits to which she was otherwise not entitled and used them for her own personal expenses.

This case is the product of an investigation by the U.S. Social Security Administration, Office of Inspector General. Assistant United States Attorney Patrick R. Delahunty is prosecuting the case.

If convicted of stealing public money, Pigg faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted of concealing material information for use in obtaining SSA benefit payments, Pigg 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. —Juan Pedro Jimenez, 39, of Ensenada, Mexico, entered a guilty plea today to conspiring to manufacture, distribute and possess with intent to distribute, manufacturing, and possessing with intent to distribute marijuana in connection with a large-scale cultivation operation on Chowchilla Mountain in Mariposa County in the Sierra National Forest in Mariposa County, United States Attorney Benjamin B. Wagner announced.

According to court documents, Jimenez was found at the cultivation site on public land in July. Agents removed 6,919 marijuana plants from the site and found fertilizer, trash, water lines, and propane tanks. The cultivation activities caused extensive damage to the land and natural resources. Native trees and plants were cut down and steep hillsides were terraced to plant the marijuana. Water was diverted from a nearby creek to irrigate the plants. In pleading guilty, Jimenez agreed to reimburse the U.S. Forest Service for the cost of cleaning up the site.

Jimenez is scheduled for sentencing on February 1, 2016, before U.S. District Judge Lawrence J. O’Neill. He faces a mandatory minimum statutory penalty of five years in prison, a maximum of 40 years in prison and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

SACRAMENTO, Calif. — After a five–day trial, a federal jury today found John James Kash, 52, of Redding, guilty of three counts of conspiracy to distribute marijuana, manufacturing marijuana, and conspiracy to launder money, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Kimberly J. Mueller.

According to evidence presented at trial, in May 2013, Kash and his three business partners shipped approximately $700,000 worth of marijuana from Benicia, California to the Pittsburgh, Pennsylvania area. Law enforcement authorities tracked the shipment from California to Pennsylvania and watched Kash and his business partners collect the shipment from the freight company and deliver it to a warehouse outside of Pittsburgh. Authorities arrested Kash and his three co-conspirators at the warehouse. That same day, authorities executed search warrants at six separate locations associated with Kash and his business partners seizing over $1 million worth of marijuana and more than $150,000 in cash.

Three months later, after Kash and his business partners had been released from custody in Pennsylvania, law enforcement authorities executed multiple search warrants at a warehouse and residences in and around Redding. Authorities found Kash living inside a warehouse that had been converted into an active marijuana cultivation operation. Authorities seized approximately 468 growing marijuana plants from the warehouse. Meanwhile, authorities searched the residence of Kash’s co-conspirators and found processed, packaged marijuana ready for distribution as well as pay/owe ledgers reflecting marijuana cultivation and sales and several firearms.

This case was the product of an investigation by the Internal Revenue Service – Criminal Investigation, Sacramento Police Department, Pennsylvania State Police, Utah Highway Patrol, and the U.S. Drug Enforcement Administration. Assistant United States Attorneys Michele Beckwith, Justin Lee, and Christiaan Highsmith are prosecuting the case.

Kash is in custody pending sentencing. Co-defendants Glen Meyers, Aimee Burgess, and James Massery have all pleaded guilty and are in custody.

Kash is scheduled to be sentenced by Judge Mueller on February 3, 2016. Kash faces a maximum sentence of 40 years in prison and a $5 million fine on the conspiracy to distribute marijuana charge and on the manufacture of marijuana change, and 20 years in prison and a $500,000 fine or twice the value of the funds involved in the money laundering offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. —Jose Javier Rosas, 62, of Bakersfield, entered a guilty plea today to aiming the beam of a laser pointer at Air-1, a Kern County Sheriff’s Office helicopter, United States Attorney Benjamin B. Wagner announced.

In pleading guilty, Rosas acknowledged that at the beginning of this year he 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 disengage from a robbery investigation.

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 2014, there were 3,894 reports of incidents involving laser strikes on aircraft. This year, there have been 5,530 laser incidents reported in the United States through October 23, 2015 (or more than 18 per day). In the Eastern District of California, which encompasses 34 counties, including Kern County, there were 150 reported incidents in 2014. This year, in the Eastern District of California, Bakersfield has the highest number of reported laser incidents. Lasers can completely incapacitate pilots who are trying to fly safely to their destination, endangering their crew members, passengers and people on the ground.

Rosas is scheduled for sentencing on February 1, 2016, before U.S. District Judge Lawrence J. O’Neill. Rosas faces a maximum prison term of five years and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

SACRAMENTO, Calif. — Daniel L. Bonnett, 40, of Sacramento, was sentenced today by United States District Judge John A. Mendez to 15 years in prison, to be followed by 30 years of supervised release, United States Attorney Benjamin B. Wagner announced.

Bonnett pleaded guilty on February 10, 2015. According to court documents, between January 27, 2013, and February 14, 2013, Bonnett sent and received images depicting the sexual exploitation of children over peer-to-peer file sharing networks and by using other Internet applications. When he was arrested, he had multiple computers with thousands of images and videos of child pornography in each. When sentencing Bonnett, Judge Mendez observed that the combination of prison time and supervision will result in Bonnett effectively spending the rest of his life under observation, which Judge Mendez observed was necessary to protect the public from future crimes by Bonnett.

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

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

SACRAMENTO, Calif. — Melvin Lee Gregory, 32, of Oroville, pleaded guilty on Tuesday to aggravated identity theft and violation the conditions of supervised release, United States Attorney Benjamin B. Wagner announced.

According to court documents, on April 2, 2015, Gregory was released from federal prison after serving a four-year sentence for a previous conviction. Between April 2, 2015, and August 22, 2015, while on probation, Gregory opened a bank account and deposited several forged checks. On August 22, 2015, Gregory was observed attempting to break into and steal U.S. Mail from a Roseville mailbox, and minutes later he successfully stole U.S. Mail from a Rocklin mailbox. When Gregory was arrested by Rocklin Police, he was in possession of stolen U.S. Mail, burglary tools, and stolen identification documents.

This case is the product of an investigation of the United States Postal Inspection Service and the Rocklin Police Department, with the assistance of the United States Probation Office in the Eastern District of California. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.

Gregory is scheduled to be sentenced by United States District Judge John A. Mendez on February 23, 2016. Gregory faces at least two years in prison for his aggravated identity theft conviction and up to an additional year for his violation of conditions of federal release. 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. — After a one-day bench trial, Barry Halajian, 56, of Fresno, was found guilty of two counts of filing false liens on federal bankruptcy judges, United States Attorney Benjamin B. Wagner announced.

The District and Magistrate Judges in the Eastern District of California were recused and U.S. District Judge Stanley A. Bastian from the Eastern District of Washington heard the case. Halajian waived his right to a jury trial, and after hearing the evidence, Judge Bastian returned his verdict late Tuesday afternoon.

According to court documents and evidence presented at trial, in 2010, Halajian initiated a Chapter 7 bankruptcy proceeding in the U.S. Bankruptcy Court in Fresno. Two years later, he initiated a Chapter 9 bankruptcy proceeding in the same court. On June 29, 2012, the Chapter 9 bankruptcy was dismissed. On July 17, 2012, Halajian filed with the California Secretary of State a series of liens on the personal property of two federal bankruptcy judges in the Eastern District of California, listing them as debtors and himself as the secured party

“Filing bogus liens against federal officials for purposes of harassment is a crime,” said U.S. Attorney Wagner. “Those who commit it are asking to be prosecuted.”

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Patrick Delahunty and Duce Rice are prosecuting the case.

Halajian will be scheduled for sentencing by Judge Bastian in February or March of 2016. Halajian faces a maximum statutory penalty on each count of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — A federal grand jury returned a 20-count indictment today against Rudolfo Delgadillo, 35, of Woodlake; Alejandro Zavala, 22, of Cutler; and Fabian Magana, 24, of Orosi, charging them with conspiracy to distribute and possess with intent to distribute methamphetamine and various other drug trafficking and firearms offenses. The grand jury also returned a separate eight-count indictment against Josh Soto, 34, of Salinas Valley Prison; Desarae Granillo, 22, and Salina Granillo, 24, both of Visalia, charging them with conspiring to distribute methamphetamine, distribution of methamphetamine and possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.

The cases are the product of an investigation of the Federal Bureau of Investigation, the United States Postal Inspector Service, California Department of Justice Special Operations Unit, the Tulare County Sheriff’s Office, the Tulare Police Department, the Visalia Police Department, the Tulare Area Regional Gang Enforcement Team (TARGET), and the California Highway Patrol (CHP). Assistant United States Attorney Kimberly A. Sanchez is prosecuting both cases.

Rudolfo Delgadillo, Alejandro Zavala, Josh Soto, and Desarae Granillo are in custody. Fabian Magana and Salina Granillo have been ordered released.

If convicted, Delgadillo, Zavala, and Magana face a maximum sentence of life in prison. If convicted, Soto faces a maximum penalty of 80 years in prison, Desarae Granillo faces a maximum penalty of 220 years in prison, and Salina Granillo faces a maximum penalty of 40 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

BAKERSFIELD, Calif. — A federal grand jury returned a two-count indictment today against Manuela Guadalupe Lizarraga-Hernandez, 32, of Downey, charging her with possession with intent to distribute methamphetamine and possessing a firearm in furtherance of that crime, United States Attorney Benjamin B. Wagner announced.

According to court documents, on February 15, 2015, Lizarraga-Hernandez possessed 440.9 grams of 97 percent pure methamphetamine along with a pink 9 millimeter handgun in the car that she was driving northbound through Kern County on the SR-99 highway.

This case is the product of an investigation by the Drug Enforcement Administration and the California Highway Patrol. Assistant United States Attorney Angela Scott is prosecuting the case.

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

FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Kenneth William Kirkland, 47, of California City, charging him with being a felon in possession of firearms, a destructive device and explosives, and failing to register a destructive device in the National Firearms Registry, United States Attorney Benjamin B. Wagner announced.

According to court documents, Kirkland possessed a bomb, various explosives, and three firearms at his residence in California City.

This case is the product of an investigation by the Federal Bureau of Investigation, the California City Police Department, the Kern County Sheriff’s Office and the California Highway Patrol. Assistant United States Attorney Angela Scott is prosecuting the case.

If convicted, Kirkland faces a maximum statutory penalty of 20 years in prison and a $260,000 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.