Eastern District of California

SACRAMENTO, Calif. — United States District Judge Morrison C. England Jr. sentenced Mohammad Nawaz Khan, 60, today to 12 and a half years in prison for his role in a $14 million unemployment and disability benefits fraud scheme, United States Attorney Benjamin B. Wagner announced.

In sentencing, Judge England said that this was “one of the longest-running, most sophisticated fraud schemes that I have ever seen.” Judge England ordered Khan to be taken into custody at the end of today’s hearing.

According to court documents, Mohammad Nawaz Khan and other family members operated a scheme that sold fake paystubs to other people in the community and used the companies they controlled to report false wages for the individuals who purchased those paystubs. At times the Khans instructed the purchasers how to use the fake paystubs to fraudulently claim unemployment and disability benefits. The Khans set up a storefront in Yuba City and sold the fraudulent paystubs on a walk-in basis. Purchasers found out about the opportunity to commit fraud with the Khans in a number of ways. Some purchasers approached the Khans looking for work and were told to commit fraud instead. Over the course of the conspiracy, the defendants reported wages for over 400 separate individuals that resulted in more than 2,000 fraudulent claims for unemployment and disability benefits. The loss in this case is more than $14 million.

U.S. Attorney Wagner stated: “This defendant was part of a massive and brazen fraud that corrupted many members of their community. The fraud occurred over the course of decades and involved hundreds of individuals who, but for the defendants running the scheme, would likely never have become involved in criminal conduct.”

“Khan and his co-conspirators defrauded the State of California for more than 20 years,” said Special Agent in Charge Monica Miller of the FBI's Sacramento field office. “He victimized California taxpayers and placed a burden on deserving benefits claimants. This sentence is a fitting reflection of the severity of his crimes and the efforts of the FBI and our partners to end to Khan’s scheme.”

“The Employment Development Department is proud to have partnered with the investigations that stopped this criminal defrauding of programs so vital to unemployed and disabled workers,” said EDD’s Director Patrick W Henning Jr.

“Today’s sentencing sends a powerful message that combating unemployment insurance fraud remains a high priority for the Office of Inspector General. We will continue to work with our law enforcement partners to safeguard unemployment insurance benefits from illicit enrichment schemes and conspiracies carried out against Department of Labor programs,” stated Abel Salinas, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations in Los Angeles.

To date, 28 individuals have been charged and 24 have pleaded guilty to various offenses connected to the scheme. Last week, Judge England sentenced co-defendants Mohammad Adnan Khan, 35, of Live Oak, to nine years in prison; Iqila Begum Khan, 34, of Live Oak, to five years in prison; and Mohammad Shahbaz Khan, 50, of Yuba City, to seven years and three months in prison and a $50,000 fine. Each was also ordered to serve a term of three years of supervised release following the service of their prison terms. A hearing will be held November 5, 2015 to determine the amount of restitution owed to the California Employment Development Department. Parole has been abolished in the federal system, and each defendant will be required to serve at least 85 percent of the prison time imposed.

This case is the product of an investigation by the Federal Bureau of Investigation; the U.S. Department of Labor, Office of Inspector General; and the California Employment Development Department, Investigations Division. Assistant United States Attorneys Jared C. Dolan and Sherry D. Haus are prosecuting the case.

SACRAMENTO, Calif. — DuWayne LeDoux, 55, of Kodiak, Alaska, pleaded guilty today to 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 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 an island off the southern coast of Alaska, with approximately 14,000 residents.

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.

Co-defendant MacDougal pleaded guilty in November 2012, and is currently serving a five-year sentence.

LeDoux is scheduled to be sentenced by United States District Judge Troy L. Nunley on January 7, 2016. LeDoux faces a maximum statutory penalty 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.

SACRAMENTO—Federal inmate Joseph Cabrera Sablan, 47, was sentenced today to life in prison without the possibility of release for the murder of United States Correctional Officer Jose Rivera, U.S. Attorney Benjamin Wagner announced.

On July 22, 2015, Sablan pleaded guilty to murdering Officer Rivera. According to court documents, on June 20, 2008, Officer Rivera was conducting his daily count at the United States Penitentiary in Atwater when Sablan attacked him with an eight‑inch homemade knife. Officer Rivera tried to flee, but was knocked backwards by Sablan and tackled by Sablan’s co-defendant, James Ninete Leon Guerrero. Leon Guerrero held Rivera down as Sablan stabbed him. Sablan and Leon Guerrero were indicted for the murder on August 14, 2008, in Fresno, but the case was transferred to Los Angeles in the Central District of California on December 19, 2014. On May 30, 2014, Leon Guerrero was sentenced to life in prison without the possibility of release for his part in the murder.

“With today’s sentencing, both of the defendants who carried out this reprehensible and senseless act have received life sentences without the possibility of release, and have been held accountable,” U.S. Attorney Wagner stated. “Those who work within our correctional facilities walk in harm’s way every day, and when one of them is attacked, we will respond vigorously.”

The case was investigated by the Bureau of Prisons and the Federal Bureau of Investigation. Assistant U.S. Attorney Duce Rice of the Eastern District of California and Trial Attorney Robert Feitel of the Criminal Division’s Capital Case Section prosecuted the case.

FRESNO, Calif. -- Tony Huy Havens, 42, of Modesto, pleaded guilty today to mail fraud and wire fraud in two mortgage fraud schemes, United States Attorney Benjamin B. Wagner announced.

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

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

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

Havens is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on January 11, 2016. Havens faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. —Sarith Chim, 34, of Long Beach, was sentenced today to six years and four months in prison by U.S. District Judge Anthony W. Ishii for conspiring to distribute oxycodone and hydrocodone pills, United States Attorney Benjamin B. Wagner announced.

According to court documents, in April 11, 2013, Chim and his co-defendants were indicted for a scheme where the defendants obtained prescriptions for oxycodone and hydrocodone from a doctor in Visalia, filled those prescriptions at pharmacies in Modesto, and then transported and mailed the pills to others involved in the conspiracy in Washington state for distribution on the black market. After illegally selling the pills, the defendants deposited the cash proceeds of the sales into bank accounts held by Chim and co‑defendants in California from which the funds were then withdrawn by Chim. Deposits and withdrawals were made in amounts of $10,000 or less to prevent Currency Transactions Reports from being filed by the banks on their cash deposits. Banks are required to file these reports on transactions greater than $10,000, and the reports are filed with the Department of the Treasury and are made available to law enforcement.

Co-defendants in this case were sentenced as follows:

David Ruem, 10 years in prison;

Phary Chim, four years and three months in prison;

Sdey Chim, four years in prison;

Chanrath Yath, three years and four months in prison;

Chanrou Yath, three years in prison;

Phally Thach, 2.5 years in prison;

Raeb Chou, two years in prison;

Loc Huu Chau, one year in prison;

Cindy Doeum, three years of probation; and

Chantha Chim, three years of probation.

In addition, the doctor responsible for writing the prescriptions to the defendants in this case, Terrell Brown, 63, was sentenced to by United States District Judge Lawrence J. O’Neill to four years and nine months in prison for illegally distributing oxycodone and structuring financial transactions. He is currently in federal custody.

One remaining defendant, Say Eng, the mother of Sarith Chim, is scheduled for trial on March 29, 2016. The charges against her are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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. Attorney Grant B. Rabenn is prosecuting the case.

FRESNO, Calif. — Barry Lee Bowser Jr., 52, of Bakersfield, was sentenced today to 21 months in prison for shining a powerful green laser at the pilot of a Kern County Sheriff’s helicopter, United States Attorney Benjamin B. Wagner announced.

In June, a federal jury found Bowser guilty of aiming the beam of a laser at Air-1, a Kern County Sheriff’s helicopter that was providing support to ground units responding to a man armed with a gun. At trial, the evidence established that the mission was diverted when the pilot of Air-1 was struck by direct hits from a powerful green laser that illuminated the cockpit and tracked the aircraft near the approach path to Meadows Field Airport. The laser strikes caused the pilot to experience flash blindness, eye discomfort, and pain that lasted several hours.

In imposing sentence, U.S. District Judge Lawrence J. O’Neill found that Bowser had obstructed justice before trial by concealing the laser and providing false statements to law enforcement and at trial through his false testimony about the offense.

The federal statute used to charge Bowser is part of legislation signed into law in 2012 by President Obama that makes it a federal crime to knowingly aim the beam of a laser pointer at an aircraft or its flight path. 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, the Federal Aviation Administration (FAA) received 3,894 reports of incidents involving laser strikes on aircraft. In the Eastern District of California, which encompasses 34 counties in the eastern portion of California, there were 150 reported laser incidents, with Bakersfield and Fresno leading in the number of reported incidents. Lasers can cause visual interference even at great distances and can completely incapacitate pilots who are trying to fly safely to their destination. Laser strikes pose a serious threat to air safety, endangering crew members, passengers and people on the ground.

The case against Bowser was investigated by the Federal Bureau of Investigation, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant U.S. Attorney Karen Escobar and Special Assistant U.S. Attorney Bayleigh Pettigrew prosecuted the case.

A federal grand jury returned a four-count indictment today against Justin Whittington, 24, of Bakersfield, California, charging him with interfering with a person’s housing rights because of his race, color or national origin by use of force or threat of force, use of a firearm during a crime of violence, unlawful possession of a prohibited firearm and making a false statement to a special agent of the FBI, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U. S. Attorney Benjamin B. Wagner of the Eastern District of California.

According to court documents, on Dec. 19, 2012, Whittington shouted racist slurs at a Latino man outside the Latino man’s home in Oildale, California, and fired a sawed off shot gun in an attempt to intimidate and interfere with the victim’s occupancy of his home because of his race, color or national origin.

This case is the product of an investigation by the FBI and the Kern County, California, Sheriff’s Office. Trial Attorney Samantha Trepel of the Justice Department’s Civil Rights Division and Assistant U. S. Attorney Brian K. Delaney of the Eastern District of California are prosecuting the case.

If convicted, Whittington faces a maximum statutory penalty of life in prison and a $250,000 fine.

An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.

BAKERSFIELD, Calif. — Justin Whittington, 24, of Bakersfield, was arrested today charged with interfering with a person’s housing rights because of his race, color, or national origin by use of force or threat of force, use of a firearm during a crime of violence, unlawful possession of a prohibited firearm, and making a false statement to a special agent of the Federal Bureau of Investigation, announced Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and U.S. Attorney Benjamin B. Wagner.

On September 24, 2015, a federal grand jury returned the four-count indictment, which was unsealed after Whittington’s arrest. According to the indictment, on December 19, 2012, Whittington shouted racist slurs and fired a sawed-off shotgun at a Latino man while the man and his family were standing outside their home in Oildale. The indictment alleges that Whittington took these actions in an attempt to intimidate and interfere with the victim’s occupancy of his home because of the victim’s race, color or national origin.

The indictment further states that Whittington later made false statements to an FBI agent when he falsely claimed that on the evening of the incident, he had been paid by someone to keep the sawed-off shotgun in the trunk of his car.

“The use of racially motivated violence and threats of violence to intimidate persons in connection with their choice of housing is a criminal act,” said United States Attorney Wagner. “Investigating and prosecuting those who violate the civil rights of others will continue to be one of the core missions of this office.”

This case is the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office. Assistant U.S. Attorney Brian K. Delaney is prosecuting the case with the assistance of Trial Attorney Samantha Trepel of the Justice Department’s Civil Rights Division.

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

SACRAMENTO, Calif. — Four residents of Sutter County, California were sentenced to prison today for their roles in a $14 million unemployment and disability benefits fraud scheme based out of Yuba City and Live Oak, California, United States Attorney Benjamin B. Wagner announced.

United States District Judge Morrison C. England Jr. sentenced Mohammad Adnan Khan, 35, of Live Oak, to nine years in prison; Iqila Begum Khan, 32, of Live Oak, to five years in prison; and Mohammad Shahbaz Khan, 50, of Yuba City, to seven years and three months in prison and a $50,000 fine. Each was also ordered to serve a term of three years of supervised release following the service of their prison terms. A hearing will be held November 5, 2015 to determine the amount of restitution owed to the California Employment Development Department. Parole has been abolished in the federal system, and each defendant will be required to serve at least 85 percent of the prison time imposed. A fourth defendant, Mohammad Nawaz Khan, 60, is scheduled to be sentenced on October 1, 2015.

According to court documents, the Khans sold fake paystubs to other people in the community and used the companies they controlled to report false wages for the individuals who purchased those paystubs. At times the Khans instructed the purchasers how to use the fake paystubs to fraudulently claim unemployment and disability benefits. The Khans set up a storefront in Yuba City and sold the fraudulent paystubs on a walk-in basis. Purchasers found out about the opportunity to commit fraud with the Khans in a number of ways. Some purchasers approached the Khans looking for work and were told to commit fraud instead. Others learned of the fraud at public places in the community, like the grocery store.

Over the course of the conspiracy, the defendants reported wages for over 400 separate individuals that resulted in more than 2,000 fraudulent claims for unemployment and disability benefits. The loss in this case is more than $14 million. To date, 28 individuals have been charged and 24 have pleaded guilty to various offenses connected to the scheme.

U.S. Attorney Wagner stated: “The defendants sentenced today committed a massive and brazen fraud that corrupted many members of their community. Collectively, their conduct occurred over the course of decades and involved hundreds of individuals who, but for the defendants’ conspiracy, would likely never have become involved in criminal conduct.”

“The scheme which led to these sentences involved more than bending a rule or exaggerating a claim,” stated Monica Miller, Special Agent in Charge of the Sacramento FBI Field Office. “It was the systematic fabrication of employment histories on a massive scale. I am proud of the work the FBI and our partners on this investigation. By working together, we all put a stop to the scheme which stole money intended for people who earned support from the state in a time of need.”

“This week’s sentencings send a powerful message that combating unemployment insurance fraud remains a high priority for the Office of Inspector General. We will continue to work with our law enforcement partners to safeguard unemployment insurance benefits from illicit enrichment schemes and conspiracies carried out against Department of Labor programs” stated Abel Salinas, Special Agent-in-Charge, U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations in Los Angeles.

“To defraud vital programs that serve as a lifeline for unemployed and disabled workers is unconscionable,” said EDD Director Patrick W. Henning, Jr. “Today’s sentencing highlights the commitment of EDD investigators, the U.S. Attorney’s Office, and our law enforcement partners to safeguard these programs.”

Of the 28 individuals, charged in this investigation, three remain pending trial. A trial date is set for Mohammad Riaz Khan, Mohammad Shahbaz Khan, and Harjit Johal on November 10, 2015, at 9:00 a.m. before United States District Judge Garland E. Burrell Jr. The charges against those individuals are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the Federal Bureau of Investigation; the U.S. Department of Labor, Office of Inspector General; and the California Employment Development Department, Investigations Division. Assistant United States Attorneys Jared C. Dolan and Sherry D. Haus are prosecuting the case.

FRESNO, Calif. — A federal grand jury returned a seven-count indictment today against Juan Penaloza-Ramirez, aka Juan Penaloza-Herrera, aka Juan Penaloza (Penaloza), 44, of Michoacán, Mexico, residing in Taft, California, and Russell Lee Riggs, 67, of Weldon, charging them with conspiring to manufacture, distribute and possess with intent to distribute, manufacturing, and two counts of possessing with intent to distribute marijuana in connection with a large-scale cultivation operation in the Fay Creek drainage in Tulare and Kern Counties in the Sequoia National Forest, United States Attorney Benjamin B. Wagner announced. Penaloza was also charged with damaging public land and natural resources as a result of the marijuana cultivation activities and being an illegal alien in possession of a firearm. Riggs was charged separately with possessing an unregistered short-barreled shotgun.

According to court documents, it is alleged that Penaloza and Riggs were supplying material, equipment, and personnel to a cultivation site at Fay Creek drainage, which consisted of over 3,000 marijuana plants, and were also responsible for transporting processed marijuana away from the grow site. It is further alleged that the marijuana cultivation operation caused extensive damage to the land and natural resources. Fay Creek supports a variety of ecosystems and resources, including riparian habitat supporting trout, wildflowers and grasses, and willow, alder and cottonwood trees. Fay Creek also serves as the primary drinking water source for many wildlife in the area. Springs were dammed and diverted to irrigate the marijuana plants and large amounts of trash were scattered throughout, including in a flowing stream.

This case is the product of an investigation by the U.S. Forest Service, the U.S. Drug Enforcement Administration, the Bureau of Land Management, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Bureau of Alcohol, Tobacco Firearms and Explosives, the Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, California Department of Justice’s Campaign Against Marijuana Planting (CAMP), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar is prosecuting the case.

Penaloza and Riggs were ordered detained and are scheduled for arraignment on the indictment on September 28, 2015, in federal court in Fresno. If convicted of the most serious drug offenses as charged in counts one through three, Penaloza faces a mandatory minimum statutory penalty of 10 years and a maximum statutory penalty of life in prison and a $10 million fine, and Riggs faces a mandatory minimum statutory penalty of five years and a maximum statutory penalty of 40 years in prison and a $5 million fine. If convicted of the environmental crime, Penaloza faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted of the firearms offenses, the defendants face a maximum statutory penalty of 10 years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Three persons were arrested today on felony charges contained in a 42-count indictment returned by a federal grand jury in Sacramento on September 10, 2015, United States Attorney Benjamin B. Wagner announced.

The indictment, unsealed today, charges John Michael DiChiara, 57, of Nevada City; James C. Castle, 51, formerly of Santa Rosa; Remus A. Kirkpatrick, 58, formerly of Oceanside; George B. Larsen, 54, formerly of San Rafael; Laura Pezzi, 59, of Roseville; Larry Todt, 63, formerly of Malibu; and Michael Romano, 68, of Benicia, charging them with conspiracy, bank fraud, false making of documents, and money laundering. Tisha Trites, 49, and Todd Smith, 44, both of San Diego, pleaded guilty to related charges before U.S. District Judge Garland E. Burrell Jr. on September 4, 2015.

DiChiara was arrested today in Cool, and Pezzi and Romano were arrested at their homes. The other four defendants listed in the indictment have yet to be arrested.

According to the indictment, DiChiara held himself out as the Archbishop of a spiritual organization named Shon-te-East-a, Walks With Spirit, the mission of which was to help individuals spiritually by alleviating them of their home mortgages. DiChiara and Castle (along with Trites who pleaded guilty to a related charge) are alleged to have orchestrated a mortgage-elimination program that fraudulently altered the chain of title on residential properties, selling the properties, and receiving the sales proceeds. Kirkpatrick, Larsen, Todt, Romano, and others allegedly recruited homeowners into the program with the promise of relief from foreclosure and a share of the sales proceeds. DiChiara and others used Shon-te-East to control the sale of the properties.

The indictment alleges that, once the homeowners were enrolled in the program, Pezzi and others created fictitious deeds of trust, a falsely made deed of reconveyance, and, where necessary, a falsely made notice of rescission of notice of default. The fictitious deed of trust was recorded at the county recorder’s office, and gave the appearance that the homeowner had refinanced the mortgage with a new lender. Todd Smith (who pleaded guilty to one count of conspiracy) or an entity controlled by the defendants was listed as the new lender, ensuring that when the properties were sold, the defendants would receive the sales proceeds. The defendants then caused to be recorded at the county recorder’s office a falsely made deed of reconveyance, indicating that the mortgage debt had been repaid to the financial institution holding the mortgage and reconveying title back to the homeowner. With these fraudulent documents on file at the county recorder’s office, a title search on the property would give the impression that the homeowner had refinanced, and no other debt was owing on the property. When the defendants caused the sale of these properties, they were able to divert the sale proceeds away from the lending institutions to their own benefit.

The defendants are alleged to have sold 37 properties through the mortgage elimination program, and attempted to sell at least an additional 97 properties, obtaining profits in excess of $8 million. They attempted to extinguish in excess of $60 million in legitimate mortgage loans.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Audrey Hemesath is prosecuting the case.

If convicted of the conspiracy count, the defendants face a maximum penalty of five years in prison and a $250,000 fine. The maximum penalty for bank fraud is 30 years and a $1 million fine. The maximum penalty for false making of documents is 10 years and a $250,000 fine. The maximum penalty for money laundering is 10 years and an additional 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. —John Steven Keplinger, 56, of Stockton, pleaded guilty today to mail fraud in connection with an auto engine scam, United States Attorney Benjamin B. Wagner announced.

According to court documents, from 2010 to 2014, Keplinger carried out a fraud scheme by purporting to sell used auto engines from Japan, but failing to provide customers what he promised. Over 300 paying customers across 44 states and the District of Columbia were defrauded. Keplinger used three companies and websites to carry out the fraud scheme: Rising Sun Engines Inc. (www.risingsunengines.com), Shop 4 Engines LP (shop‑4‑engines.com), and Your Parts Manager (yourpartsmanager.com). Most of the time, Keplinger’s customers paid by check sent via UPS. After Keplinger accepted payment, he either sent no engine at all or sent the customer a defective engine obtained in the United States, often from a junkyard. United States Customs and Border Protection records indicate that Keplinger had stopped importing engines in 2007. The total estimated loss from Keplinger’s fraud is approximately $470,000.

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

Keplinger is currently in custody. He is scheduled to be sentenced by United States District Judge Kimberly J. Mueller on December 16, 2015. Keplinger faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Two Bakersfield residents pleaded guilty today to drug trafficking offenses, United States Attorney Benjamin B. Wagner announced.

Guillermo Magallanes, 36, pleaded guilty to conspiracy to distribute methamphetamine, and Pasqual Gonzales Magallanes, 44, pleaded guilty to distribution of methamphetamine.

According to court documents, the defendants conspired with Juan Lascano Jr. 32, of Bakersfield, to distribute pound-quantities of methamphetamine in the Bakersfield area. In addition to the criminal charges, the United States is seeking 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. Lascano pleaded guilty on July 27, 2015, to distribution of methamphetamine.

This case is 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 K. Delaney is prosecuting the case.

Guillermo Magallanes and Pasqual Gonzales Magallanes are scheduled to be sentenced by Judge Lawrence J. O'Neill on December 14, 2015. Lascano is scheduled to be sentenced October 19, 2015. Guillermo Magallanes faces a maximum statutory penalty of life in prison and a $5 million fine and Pasqual Gonzales Magallanes and Juan Lascano Jr. face a maximum statutory penalty of 40 years in prison and a $2 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. —Jose Luis Montoya-Salazar, aka Rafael Salazar-Sanchez (Montoya), 43, a native and citizen of Mexico, was sentenced today to five years in prison for conspiring with Jimmy Gil, 35, of Shafter; and Luis Ricardo Eslava-Corral (Eslava), 42, of Sinaloa, Mexico, to import, distribute, and possess with intent to distribute 38 kilograms, or about 84 pounds, of cocaine, United States Attorney Benjamin B. Wagner announced. In a prior civil proceeding, U.S. District Judge Lawrence J. O’Neill ordered the forfeiture of $3,104,661 in cash that drug agents seized during the investigation of the criminal case.

Montoya’s sentence follows his guilty plea in May. In pleading guilty, Montoya admitted that he had conspired to offload the cocaine in Bakersfield that had been smuggled into the United States from Mexico. Follow-up investigation resulted in the seizure of over $3 million in cash hidden in an asphalt roller. The seized cocaine has a street value of over $3 million.

On July 27, 2015, Gil was sentenced to five years in prison, and on July 20, 2015, Eslava was sentenced to 20 months in prison.

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Drug Enforcement Administration, the Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) task force, the Kern County Sheriff’s Office, the Tulare County Sheriff’s Office, and the Bakersfield Police Department. Assistant United States Attorney Karen Escobar prosecuted the criminal case, and Assistant United States Attorney Kevin Khasigian handled the civil forfeiture proceeding.

SACRAMENTO, Calif. — Attorney General Loretta Lynch today announced that the Justice Department has awarded grants totaling more than $23.2 million to 73 local and tribal agencies in 32 states to expand the use of body-worn cameras and explore their impact. The body-worn camera pilot program announced in May 2015 includes $19.3 million to purchase body-worn cameras, $2 million for training and technical assistance and $1.9 million to examine the impact of their use. The grants, awarded by the department’s Office of Justice Programs (OJP), build on President Obama’s proposal to purchase 50,000 body-worn cameras for law enforcement agencies within three years. In the Eastern District of California, the City of Sacramento received a substantial grant under the program.

“This vital pilot program is designed to assist local jurisdictions that are interested in exploring and expanding the use of body-worn cameras in order to enhance transparency, accountability and credibility,” said Attorney General Lynch. “The impact of body-worn cameras touches on a range of outcomes that build upon efforts to mend the fabric of trust, respect and common purpose that all communities need to thrive.”

The grants, which require a 50/50 in-kind or cash match, can be used to purchase equipment and require that applicants establish a strong implementation plan and a robust training policy before purchasing cameras. Each agency awarded a grant is responsible for developing a plan for long-term storage, including the cost of storing data.

OJP’s Bureau of Justice Statistics is collecting data on body-worn camera usage through surveys of law enforcement agencies.  It is also designing data collection forms for future surveys of prosecutors and public defenders to measure how body-worn camera footage is being used by the courts in criminal cases.

For additional information about the BWC Pilot Implementation Program, visit http://www.bja.gov/bwc/pdfs/BWCPIP-Award-Fact-Sheet.pdf. More information about OJP can be found at www.ojp.gov.

SACRAMENTO, Calif. — Today, U.S. Attorney General Loretta Lynch announced Office of Community Oriented Policing Services (COPS Office) funding awards to 10 cities in the Eastern District of California, aimed at creating, and in some cases protecting, 47 law enforcement positions. Over $107 million will be awarded nationally, through the COPS Hiring Program, including $7,651,542 for local law enforcement agencies in the Eastern District of California.

This year’s grantees include the following jurisdictions, with funding for the number of positions noted: Avenal (1), Dinuba (1), Fresno (15), Mendota (1), Sacramento (15), Vacaville (2), Vallejo (6), Wasco (1), West Sacramento (2), and Woodland (3).

“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Ronald L. Davis, Director of the COPS Office. “These grants are not simply about putting more officers on the street, they are about expanding the capacity of law enforcement agencies to engage in community policing.”

CHP provides grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers. The program provides salaries and benefits for officer and deputy hires for three years.

“These grants will provide meaningful assistance to law enforcement agencies large and small in this region,” said United States Attorney Benjamin B. Wagner.

Priority consideration was given this year to agencies that selected any of the Building Trust focus areas or School Based Policing through School Resource Officers.  All applicants were encouraged to refer to the report of the President's Task Force on 21st Century Policing for suggested actions to incorporate into their proposed community policing strategy.

The COPS Office is a federal agency within the U.S. Department of Justice responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 127,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.

For the entire list of grantees and additional information about the 2015 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.

FRESNO, Calif. — Manuel Riviera-Felix, aka Felipe Garcia, 27, of Mexico, was sentenced today by United States District Judge Lawrence J. O'Neill to 10 years and 11 months in prison for distribution of methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, Rivera-Felix was a leader of a large scale drug organization in Bakersfield responsible for the importation and sale of large quantities of methamphetamine. Between March 1, 2014, and July 10, 2014, Rivera-Felix conspired with Juan Angel Lopez, 33, of Bakersfield, Edi Vega Bustamante 22, of Mexico, and others to distribute up to 45 kilograms of methamphetamine. Lopez pleaded guilty to conspiring to distribute and possess with intent to distribute methamphetamine and was sentenced to seven years and six months in prison. Bustamante pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to five years in prison.

This case was the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation by the Drug Enforcement Administration, the Kern County Sheriff’s Office, the Bakersfield Police Department, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Southern Tri-County High Intensity Drug Trafficking Area Task Force. Assistant United States Attorney Brian K. Delaney prosecuted the case.

FRESNO, Calif. — Four of seven defendants were arrested today on federal charges related to their alleged involvement in a scheme that defrauded insurance companies of at least $1.2 million by staging car crashes and submitting false insurance claims, United States Attorney Benjamin B. Wagner announced.

A federal grand jury returned the sealed indictment on August 27, 2015, which was unsealed after the arrests today.

The indictment charges Juan Ortiz Rivas, 38, of Ceres; Oscar Diaz Landa, 45, of San Jose; Victor Hugo Soriano-Villafan, 25, of Modesto; Liobigildo Vargas, 45, of Turlock; Juan Marquez Cadenas, 29, of Patterson; Cristopher Santiago Sanchez-Becerra, 31, of Stockton; and, Alfonso Apu, 47, of Modesto with conspiracy to commit mail fraud and mail fraud. Landa, Sanchez-Becerra, and Apu were arrested this morning at their residences, and Vargas was arrested at his business Vargas Auto Body in Turlock. Soriano-Villafan was arrested last week in Las Vegas and arraigned in U.S. District Court in Fresno.

According to court documents, from October 2011 until August 2014, the defendants conspired to stage dozens of car accidents and submit false claims seeking compensation for the damage caused by the staged accidents. In each staged accident, the defendants damaged two or three vehicles and caused about $5,000 to $10,000 of damage to each vehicle. After each staged collision, all parties involved submitted a similar cover story to an insurer that concealed the true cause of the accident and commonly used aliases, false identities, and false addresses. The defendants usually used different vehicles in the staged collisions by obtaining many different vehicles and using false identities to both register the vehicles with the Department of Motor Vehicles and obtain insurance policies for the vehicles.

The indictment further alleges that the defendants were able to repeat the scheme in dozens of crashes by recruiting other individuals in the staged collisions. These individuals would allow their vehicles to be damaged in a staged collision and submit their own claim for damages after receiving instructions from the defendants about the cover story to use. In many instances, false claims were submitted to the recruited individual’s insurance company. Commonly, the defendants would also offer to repair the recruited individual’s vehicle at one of their automobile repair shops, usually with less-than-complete repair work, for a fee less than the payment from an insurance company on the damaged vehicle.

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the California Department of Insurance, Fraud Division. Assistant United States Attorneys Patrick R. Delahunty and Henry Z. Carbajal III are prosecuting the case.

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

FRESNO, Calif. — Nicholas Huerta, 33, of Fresno, pleaded guilty today to one count of wire fraud for a fraud scheme involving military recruiting bonuses, United States Attorney Benjamin B. Wagner announced.

According to court documents, the United States Army contracted with Document and Packaging Broker Inc. (DOCUPAK) to administer the Guard Recruiting Assistance Program (G-RAP). Under G-RAP, members of the California National Guard served as Recruiting Assistants. If a Recruiting Assistant referred a potential Guard member to a recruiting office and that person ultimately enlisted, the Recruiting Assistant was eligible to receive monetary compensation disbursed by DOCUPAK.

Huerta served in the California National Guard as a recruiter.  In that position, he had access to names of recruits who had not been referred by any Recruiting Assistant.  Huerta pleaded guilty to taking part in a scheme that caused DOCUPAK to issue compensation that was not earned by claiming that various enlistees had been referred by Recruiting Assistants when, in fact, they had not.

This case is the product of an ongoing investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorney Michael G. Tierney is prosecuting the case.

“As today's guilty plea shows, the Defense Criminal Investigative Service and its law enforcement partners will continue to identify and investigate those individuals who seek to defraud the U.S. taxpayer,” said Special Agent In Charge Chris D. Hendrickson, Defense Criminal Investigative Service, Western Field Office. “Any individual, regardless of position, who attempts to prosper at the expense of the American taxpayer, will be brought to justice.”

“The California National Guard has fully cooperated with the U.S. Attorney's Office and the U.S. Army Criminal Investigation Command regarding these matters, and will continue to do so moving forward, as we expect any who contradict the California National Guard's core values to be held accountable,” said Capt. Will Martin, Public Affairs Officer for the California Military Department.

Huerta is scheduled to be sentenced by United States District Court Judge Lawrence J. O’Neill on December 7, 2015. Huerta faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Seven other National Guard members have been charged in six separate indictments for their roles in similar recruiting‑fraud scheme in Fresno and Sacramento. Brian Kaps, 40, of Chico, pleaded guilty on November 21, 2014, to one count of wire fraud; Sarah Nattress, 27, of Paradise, pleaded guilty on October 23, 2014, to one count of wire fraud, and Leonardo Pesta, 47, of Mountain View, pleaded guilty on July 27, 2015, to one count of wire fraud. The pending charges against the remaining four defendants are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — After a 10-day trial before Chief United States District Judge Morrison C. England Jr., a jury returned its verdict today finding a Sacramento couple guilty on all four counts related to the arson of their former home in Antelope, United States Attorney Benjamin B. Wagner announced.

The jury found Alexander Sakhanskiy, 43, and Larisa Sakhanskiy, 46, guilty of arson to commit another felony, two counts of mail fraud, and arson affecting interstate commerce. After today’s verdict, the judge ordered the defendants to be taken into custody.

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

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

Eric Harden, ATF Acting Special Agent in Charge of the San Francisco Field Division, said: “Arson is an act of violence and endangers our communities. Let this case be a warning, we are committed to aggressively pursue arson investigations with our law enforcement partners.”

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

The defendants are scheduled to be sentenced on December 4, 2015. They face a minimum statutory penalty of 10 years in prison, a $250,000 fine, and a three-year term of supervised release for the charge of arson to commit another felony. The mail fraud counts carry a potential penalty of up to 20 years in prison, a $250,000 fine, and a three-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.

SACRAMENTO, Calif. — A federal grand jury in Sacramento brought two indictments today against three defendants, charging them for their involvement in sex trafficking of minors, United States Attorney Benjamin B. Wagner announced.

The grand jury charged Jeremy Ray Warren, 22, of Vallejo, and Alyssa Tegan Brulez, 22, of Vacaville, with sex trafficking of children or by force, threats of force or coercion. A separate indictment charged Jarrail Lamont Smith, 23, of Cleveland, Ohio, with transportation of minors with intent to engage in prostitution.

According to court documents in the first case, between February 1, 2012, and April 18, 2013, Warren trafficked two minor victims, knowing that means of force, threats of force, and coercion would be used to cause the minors to engage in prostitution. And between April 23 and April 25, 2013, Warren and Brulez conspired to traffic a third minor victim, and to benefit financially from commercial sex acts by the third minor victim. Brulez recruited and enticed the third minor victim, knowing that force and threats of force would be used to cause the third minor to engage in prostitution.

This case is the product of an investigation by the Federal Bureau of Investigation the California Highway Patrol, the Vacaville Police Department and the Las Vegas Metropolitan Police Department. Assistant United States Attorneys Michael M. Beckwith and Michele M. Beckwith are prosecuting the case. (Docket # 2:15-cr-189 TLN)

According to the second indictment, between August 3, 2015 and August 25, 2015, Smith transported two minor girls from Cleveland to Northern California with the intent that they engage in prostitution. Smith was arrested after the two minors were discovered in a hotel room in Sacramento. One of the victims had two black eyes when she was recovered.

This case is the product of an investigation by the Federal Bureau of Investigation, with assistance from the Sacramento Police Department. Assistant United States Attorney Michele Beckwith is prosecuting the case. (Docket # 2:15-cr-188 TLN)

If convicted, Warren and Brulez face a maximum statutory penalty of life in prison and a $250,000 fine. If convicted, Smith faces a minimum of 10 years in prison and 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

SACRAMENTO, Calif. — A Modesto man was sentenced today to 23.5 years in prison for producing child pornography, and a Shasta County man was sentenced today to eight years and one month in prison for receiving child pornography, United States Attorney Benjamin B. Wagner announced.

“Protecting the most vulnerable members of society is one of this office’s top priorities, and no one is more vulnerable than child victims of sexual exploitation crimes,” said U.S. Attorney Wagner.

“All children deserve a safe and healthy childhood free from abuse and exploitation.  These crimes are among the most heartbreaking and abhorrent we investigate, especially when such are committed by someone the child trusts,” said Assistant Special Agent in Charge Manuel Alvarez of the Federal Bureau of Investigation’s Sacramento field office. “We are committed to identifying and investigating individuals who commit crimes against children to ensure justice for the young victims and safety for others.”

“The sexual exploitation of children is wrong and will not be tolerated,” said Tatum King, deputy special agent in charge of HSI San Francisco. “Together with our law enforcement partners, Homeland Security Investigations will bring to justice anyone involved in such heinous acts.”

United States District Judge Troy Nunley sentenced Danny M. Shatswell Jr., 44, of Modesto, to 23 years and six months in prison for producing visual depictions of a minor engaged in sexually explicit conduct. According to court documents, Shatswell used a webcam to produce sexually explicit images of a minor. The minor victim reported to law enforcement that Shatswell was abusing her, and when Shatswell’s electronic devices were searched, sexually explicit images were found that Shatswell produced of his victim in 2010 and 2011.

This case was the product of an investigation by the Federal Bureau of Investigation, the Modesto Police Department, and the Sacramento County Sheriff's Office’s High Tech Crimes Task Force. Assistant U.S. Attorney Michelle Rodriguez prosecuted the case.

Judge Nunley also sentenced Jason B. Scarcello, 45, of Anderson, today to eight years and one month in prison for receipt of child pornography. According to court documents, between April and June 2012, Scarcello used a file-sharing program to download multiple movies depicting the sexual exploitation of children. Scarcello was arrested on July 25, 2012, after agents executed a federal search warrant at his residence and discovered CDs and DVDs containing sexually explicit images and videos of children. According to the search warrant affidavit, suspicions about Scarcello first arose after investigators determined that he had engaged in computer chats with a previously charged suspect in Kansas. From August 2010 through March 2012, Scarcello and the Kansas man discussed in computer chats the abuse of child victims.

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

These cases were 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. — Ken Sarna, 50, of Vallejo, was sentenced today by United States District Judge Troy L. Nunley to two years and six months in prison for one count of selling unregistered securities, United States Attorney Benjamin B. Wagner announced.

According to court documents, Sarna was the Director of Operations for Heaven Investments Holding Corporation (HIHC), a Sacramento company that was family-owned and operated by, among others, codefendants Akbar Bhamani, Zain Bhamani, and Aly Bhamani. From February 2007 through August 2008, HIHC solicited investors to participate in its investment programs, including the Tenants in Common (TIC) program. The TIC program was to use investor money to develop four properties, including a hotel in Oakland. HIHC sold fractionalized ownership interests to investors in each of the properties. These fractionalized interests qualified as securities, but were never registered with the SEC. Investors in HIHC lost between $2.5 million and $7 million.

In sentencing memoranda previously filed with the District Court in this case, the government argued that the sale of unregistered securities was related to the operation of HIHC as a Ponzi scheme, and that the company made various misrepresentations to investors about its holdings and how the investors’ money would be secured. At the sentencing of Akbar Bhamani, the government argued that none of the investors were told that HIHC was on the verge of collapse, and as late as May and June of 2008 — just months before the company declared bankruptcy — the defendants were still bringing in large investments with promises that HIHC was a “slam dunk” investment.

The court previously sentenced Akbar Bhamani, the founder and CEO of HIHC, to eight years in prison after hearing from a number of investors who described the devastating impact of their losses to HIHC. In some cases, investors lost their retirement and life savings. The court sentenced co-defendants, Zain Bhamani to two years and nine months in prison and Aly Bhamani to 11 months in prison. Shaun Bhamani was sentenced to four months in prison for his failure to report a mortgage fraud that was related to HIHC’s failed investment programs. Judge Nunley has ordered the defendants to pay restitution, the amount of which will be determined at a later proceeding.

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

FRESNO, Calif. — Ernest Garza Reyes, 32, of Madera, was sentenced today by United States District Judge Anthony W. Ishii to eight years in prison for distributing child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, from July 2, 2011, through December 1, 2011, Reyes sent and received over 200 email messages that contained over 2,800 images depicting minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic and masochistic violence, and included depictions of prepubescent minors. Reyes was charged with receiving or distributing child pornography on May 9, 2013, and pleaded guilty to this charge on September 8, 2014.

This case was the product of an investigation by the Central California Internet Crimes Against Children Task force, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Fresno County Sheriff’s Office. Assistant United States Attorney Brian W. Enos prosecuted the case.

“Today’s sentencing is another victory in the fight against the sexual exploitation of children,” said Ray Greenlee, assistant special agent in charge for HSI Sacramento. “Homeland Security Investigations works tirelessly with its law enforcement counterparts, including the Fresno County Sheriff’s Department, to identify those who prey on innocent children and hold them accountable for their actions.”

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

FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Marcus Anthony Maluhia Araiza Jr., 18, of Rancho Cucamonga, charging him with aggravated sexual abuse of a child and abusive sexual contact with a child under 12 years of age, United States Attorney Benjamin B. Wagner announced.

According to allegations in a criminal complaint previously filed against Araiza, during the early morning hours of August 26, 2015, National Park Service rangers responded to a call that an 11-year-old boy was molested while in a restroom at Camp Curry in Yosemite National Park. The boy reported being in the restroom when an unknown man grabbed him and touched his genitals. The boy was able to escape from the bathroom get to his mother. Flyers posted in Curry Village led to Araiza’s arrest later that morning.

This case is the product of an investigation by the National Park Service. Assistant United States Attorney Michael S. Frye is prosecuting the case.

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

SACRAMENTO, Calif. — A superseding indictment has been unsealed that charges three defendants for participating a large-scale scheme to defraud over 119,000 credit card account holders by making false charges on their accounts, United States Attorney Benjamin B. Wagner announced.

The original indictment was returned on March 20, 2014, and charged Mihran Melkonyan, 35, of Sacramento, and Rouslan Akhmerov, 41, of Los Angeles, with 23 counts of wire fraud and mail fraud. Akhmerov pleaded guilty to credit card fraud on December 15, 2014, and is awaiting sentencing.

The superseding indictment charges Melkonyan and adds defendants Ruslan Kirilyuk, 37, of Los Angeles, and Aleksandr Maslov, 34, of Sacramento, to the indictment, charging all three defendants with 24 counts of wire fraud and two counts of mail fraud. Kirilyuk is also charged with one count of aggravated identity theft. Melkonyan has been in custody since his arrest on April 15, 2015. Maslov was arrested on Tuesday and released on bond. Kirilyuk has yet to appear, and there is a warrant for his arrest.

According to court documents, between October 5, 2011, and March 5, 2014, the defendants participated in a scheme to obtain money from credit card holders, credit card companies, and third-party credit card payment processors by charging individuals’ credit cards without their permission or knowledge for goods and services that were not provided.

The defendants created at least 70 fictitious businesses for the purpose of billing stolen credit cards, using names that sounded legitimate such as 24 Quick Stop, Best Box, Chevran, Marshall Store, Stop Shop Market, Walt Mart, and Whole Store. In some cases, the fictitious businesses had Internet domain names and email addresses associated with them that were used to create the appearance of a legitimate business. Some of these fictitious businesses were established in the names of unknowing victims; for example, the defendants obtained stolen or misappropriated copies of student transcripts from a Sacramento-area high school and used the students’ identities to establish the fictitious businesses.

According to the superseding indictment, the defendants obtained information for credit card accounts and processed a large number of small payments from different credit cards in a relatively short period of time. The credit card providers such as American Express and third-party payment processors such as PayPal credited the businesses’ accounts based on the processed credit card transactions for the purported sales.

As part of the scheme, the defendants opened multiple bank accounts that they controlled using the identity theft victims. These accounts were linked directly to the businesses’ merchant accounts with credit card providers and third-party credit card payment processors. The defendants transferred money from the businesses’ merchant accounts to the bank accounts of the victims, and then withdrew cash from these accounts through ATM withdrawals, using debit cards and other means.

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

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

SACRAMENTO, Calif. — Brent Lee Newbold, 58, of Granite Bay, pleaded guilty today to wire fraud and agreed to submit to a restitution order of at least $2.9 million, United States Attorney Benjamin B. Wagner announced.

Newbold was employed as chief executive officer of Holy Cow, a Rocklin-based business that produced a “green” cleaning product, marketed to stores such as Wal‑Mart, ACE Hardware, and Bed, Bath & Beyond.

According to court documents, between October 2007 and January 2010, Newbold engaged in a scheme to defraud investors and lenders. He made a variety of misrepresentations to investors about the financial health of the company, including the company’s debt levels and how invested funds would be used. In fact, Holy Cow bore a significant amount of debt, and Newbold continued to assume additional debt related to Holy Cow. Newbold used investor funds for nonbusiness purposes, diverting it to himself and his wife, paying his mortgage, and paying previous investors.

Based on Newbold’s claims, a corporate investor, Spence Enterprises, invested $2 million in Holy Cow. According to the plea agreement, Newbold, without authorization, diverted over $950,000 from Holy Cow corporate accounts to himself, his wife, his mortgage company, and his previous lenders and investors. Over $550,000 of that money had been invested by Spence Enterprises. When Spence Enterprises learned of Newbold’s diversion of money, they reprimanded him and told him to repay the money.

After he was confronted by Spence Enterprises, Newbold opened a secret account at American River Bank in the name of Holy Cow Inc. Newbold was the sole signatory on the account, and the account statements were sent to Newbold’s residence. Newbold used the bank account to receive funds from undisclosed individual investors in Holy Cow.

Between July 2008 and January 2010, Newbold solicited over 10 individual investors. Newbold falsely claimed that he was authorized to act on behalf of Holy Cow; that he owned Holy Cow; he owned the majority of Holy Cow stock; Holy Cow was financially sound, stable and profitable. In some cases, Newbold provided his individual investors with false Holy Cow stock certificates, false Holy Cow purchase order reports, and corporate promissory notes.

By December 2009, Spence Enterprises put Holy Cow into bankruptcy as a result of the unauthorized and undisclosed debt Newbold was taking on in connection with Holy Cow. The gross loss amount in this case is over $2.9 million.

“The defendant raised money from investors through misrepresentations and false promises,” said Thomas McMahon, Acting Special Agent in Charge, IRS Criminal Investigation. “Then, without authorization, the defendant diverted approximately $1 million to himself, his wife, his mortgage company, and his previous lenders and investors. This chain of events led the company into bankruptcy. Those who line their pockets with profits from these schemes should know they will not go undetected and will be held accountable.”

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

Newbold is scheduled to be sentenced on December 3, 2015, by United States District Judge Morrison C. England Jr. Newbold faces a maximum sentence of 20 years in prison, a $250,000 fine, and a three-year term of supervised release. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing 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 Franklyn Collier Jones, 52, of Fresno, charging him with health care fraud and making false statements relating to a health care matter, United States Attorney Benjamin B. Wagner announced.

According to court documents, Jones practiced podiatry in Fresno. Between 2010 and 2015, Jones allegedly billed Medicare for surgical procedures called avulsions and matrixectomies that he did not perform. In fact, Jones allegedly performed only routine foot care on the patients, such as clipping of toe nails. Jones allegedly billed more than $141,000 for these surgical procedures during this time period.

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

If convicted, Jones faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count of health care fraud; and 5 years in prison and a $250,000 fine for each count of making a false statement. 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 six-count indictment today against Larry Landseadal, 46, of Clovis, charging him with production of false identification documents, possession of false identification documents, possession of document-making implements, possession of 15 or more fraudulent counterfeit access devices, counterfeiting United States currency and possession of images for counterfeiting United States currency, United States Attorney Benjamin B. Wagner announced.

According to court documents, Landseadal possessed over 260 profiles of individuals, including their names, social security numbers, and other personal identifying information. He also produced false California driver’s licenses and possessed both counterfeit United States currency and images used to counterfeit United States currency.

This case is the product of an investigation by the United States Secret Service, the Clovis Police Department, and the Fresno Police Department. Assistant United States Attorney Mia A. Giacomazzi is prosecuting the case.

If convicted, Landseadal faces a maximum statutory penalty of 30 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. — Former bank manager Sylvia Ochoa, 33, and Shanne Leavell, 23, both of Orange Cove, were arrested today for an embezzlement scheme that defrauded the Bank of America of over $600,000, United States Attorney Benjamin B. Wagner announced.

A federal grand jury returned a six-count indictment on August 27, 2015, against them, charging Ochoa with conspiracy to commit bank fraud, bank fraud, and embezzlement by a bank manager, and charging Leavell with conspiracy to commit bank fraud and bank fraud.

According to court documents, Ochoa was the branch manager at Bank of America on East Tulare Street in Fresno. Between March 2013 and October 2013, Ochoa and Leavell conspired to defraud the bank. Contrary to the bank requirements, Ochoa prevented other bank employees from counting the cash in the vault. She entered the vault after hours and removed cash to spend on personal expenses. Ochoa also made fraudulent credits and transfers into accounts over which she controlled at Bank of America, including two accounts she opened in the name of her boyfriend, Leavell. Ochoa and Leavell then withdrew and spent the money Ochoa stole from the vault and fraudulently deposited into Leavell’s accounts on personal expenses and items, including the purchase of a truck, gambling at casinos, and buying expensive hand bags. In total, Ochoa and Leavell defrauded and embezzled from Bank of America over $600,000.

This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant United States Attorney Mia A. Giacomazzi is prosecuting the case.

If convicted, Ochoa and Leavell face a maximum statutory penalty of 30 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, 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. — Gurpinder Sandhu, 47, of Vallejo, pleaded guilty today to possession of credit card making equipment and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.

According to court documents, between July 2013 and September 2014 Sandhu and Simone Aguilar, 42, of Vallejo, used stolen identification information to manufacture credit cards and IDs. They used the stolen IDs and credit cards to obtain goods and credit from car dealerships and retail stores. Sandhu fraudulently obtained a 2014 Nissan Rogue, a 2014 Dodge Challenger a 2014 Harley Davidson motorcycle, a 2013 Yamaha motorcycle, a 2010 Chevrolet Corvette, a 2013 Dodge Challenger and a 2013 Dodge Charger.

According to the plea agreement, , law enforcement agents found many counterfeit items in Sandhu’s residence, including credit cards and California driver’s licenses. Agents also found equipment used to manufacture these counterfeit items such as an embossing machine, cameras, printers, scanners, material and chemicals used to produce identification cards, state seals, and a blue backdrop on the wall to imitate a California Department of Motor Vehicles ID photo background. Agents also found documents containing the names of real people, such as rental agreements, Comcast bills and sales receipts. Based on the fraudulent documents found in the residence, at least 50 victims have been identified.

“Identity theft poses a significant vulnerability and often wreaks havoc on the lives of innocent victims,” said Tatum King, acting special agent in charge for HSI San Francisco. “Today’s guilty plea sends a clear message that HSI and our law enforcement partners will work tirelessly to identify those responsible for such schemes and hold them accountable for the harm they cause.”

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

Sandhu is in federal custody. He is scheduled to be sentenced by U.S. District Judge John A. Mendez on December 8, 2015. Sandhu 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.

Aguilar is charged with conspiracy, possession of counterfeit credit cards, possession of credit card making equipment, passing fraudulent checks, and aggravated identity theft. She remains in custody with a status conference set for October 27, 2015. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Keri S. Southwood, 21, of Elk Grove, pleaded guilty today to one count of bank fraud and one count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced.

According to court documents, between October 1, 2014, and February 12, 2015, in Elk Grove and other places in Sacramento County, Southwood and co-defendants Leonard A. Velasco, 23, and Joseph D. Ryan, 20, both of Elk Grove, frequently damaged or destroyed U.S. Postal letter boxes and stole U.S. Mail. After cataloguing the stolen mail, the defendants targeted certain postal customers in order to return to the mail receptacles to steal the replacement credit or debit cards mailed to the postal customers. The defendants also used ID information found in the stolen mail to apply for credit cards and had the cards sent to an address they controlled. Posing as the victims, the defendants used the credit or debit cards, PINs, and victims’ names to get money, goods and services.

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

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

Southwood is scheduled to be sentenced by United States District Judge John A. Mendez on December 8, 2015. Co-defendant Velasco pleaded guilty on August 25, 2015, to bank fraud and aggravated identity theft and is scheduled to be sentenced on December 15, 2015. Both Velasco and Southwood face up to 30 years in prison for the bank fraud conviction and two years in prison for the aggravated identity theft conviction. 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.

Ryan is scheduled for status hearing before Judge Mendez on September 15, 2015. The charges are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Brent Douglas Cole, 61, was sentenced to 29 years and seven months in prison today for an assault on law enforcement officers by U.S. District Judge Garland E. Burrell Jr., announced U.S. Attorney Benjamin B. Wagner for the Eastern District of California.

On Feb. 11, 2015, after a three-day trial, a federal jury found Cole guilty of assaulting a federal officer with a deadly weapon that inflicted bodily injury, assaulting a person assisting a federal officer with a deadly weapon that inflicted bodily injury and discharging a firearm during a crime of violence.

According to evidence presented at trial, on June 14, 2014, a Bureau of Land Management (BLM) ranger stopped Cole while he was driving a vehicle on a closed dirt road on BLM land near the South Yuba River campground.  The ranger gave Cole a warning and allowed him to leave without issuing him a citation.  The ranger continued up the dirt road and discovered a makeshift campsite with two motorcycles – one of which had been reported stolen and the other with expired tags.  The ranger requested the California Highway Patrol’s (CHP) help to impound the motorcycles.

While the ranger and a CHP officer were preparing to move the two motorcycles, Cole emerged from the brush surrounding the campsite and announced that he was coming to get his things.  The ranger asked Cole if he was armed and when Cole replied that he was, the ranger reached for his handcuffs.  Cole said he would not allow the ranger to place the handcuffs on him.  Cole then drew a Taurus .44-caliber revolver from the right side of his waist, pointed the weapon at the ranger and fired multiple rounds.  One round struck the Ranger in the left shoulder.  In response to Cole’s actions, the ranger and the CHP officer returned fire.  Cole fired multiple rounds at the CHP officer and one bullet struck the officer in the right leg.  Cole was struck several times by law enforcement.

After expending his ammunition and being shot multiple times, Cole gave up and was arrested. Cole, the BLM ranger and the CHP officer received medical attention and all survived their wounds.

“The defendant has repeatedly demonstrated that he lacks remorse and has no respect for the law,” said Judge Burrell in the sentencing.  “…He has a stunning lack of regard for anyone other than himself.”

“The men and women in law enforcement who serve our communities risk their lives every day they report to work,” said U.S. Attorney Wagner.  “The BLM ranger and CHP officer who were shot in this case were doing nothing more than carrying out routine duties.  We are gratified with today’s sentence, we appreciate the assistance and cooperation of the Nevada County District Attorney’s Office and we will continue to make prosecuting those who put officers at risk a top priority for our office.  More than anything, we are thankful that their injuries were not more severe and that the incident did not result in a loss of life.”

“I thank the Department of Justice, Office of the U.S. Attorney and the many jurisdictions at the federal, state and local level who worked together to successfully prosecute this case,” said California State Director Jim Kenna for BLM.  “On behalf of the BLM, thank you to all the brave men and women who risk their lives, backing each other up to protect America’s public lands and the people who visit them.”

“This case is illustrative of the risk law enforcement officers face on a daily basis” said Special Agent in Charge Monica M. Miller of the Sacramento’s Field Office for the FBI.  “Cole violently assaulted both a Bureau of Land Management officer and the CHP officer who was assisting him in his lawful duties.  Cole will now have decades to consider his willful disregard for the officer’s duty to uphold the law.  The FBI stands ready to investigate such violent crimes against federal officers and thank our law enforcement partners for their collaboration.”

“Every day, our officers go to work not knowing what dangers they may face,” said Commissioner Joe Farrow for CHP.  “This case demonstrated not only the challenges and dangers, but also the cooperation and teamwork among agencies that protect the people of California.  On behalf of the CHP, I would like to express my appreciation to U.S. District Judge Burrell for his deliberations in pronouncing the nearly 30-year sentence.”

This case was the product of an investigation by the Bureau of Land Management, the Federal Bureau of Investigation, the California Highway Patrol, the Nevada County Sheriff’s Office and the Nevada County District Attorney’s Office.  Former Assistant U.S. Attorney Michael D. McCoy and Assistant U.S. Attorney Heiko Coppola prosecuted the case.

SACRAMENTO, Calif. — United States District Judge Garland E. Burrell Jr. sentenced Brent Douglas Cole, 61, to 29 years and seven months in prison today for an assault on law enforcement officers, United States Attorney Benjamin B. Wagner announced.

On February 11, 2015, after a three-day trial, a federal jury found Cole guilty of assaulting a federal officer with a deadly weapon that inflicted bodily injury, assaulting a person assisting a federal officer with a deadly weapon that inflicted bodily injury, and discharging a firearm during a crime of violence.

According to evidence presented at trial, on June 14, 2014, a Bureau of Land Management (BLM) ranger stopped Cole while he was driving a vehicle on a closed dirt road on BLM land near the South Yuba River campground. The ranger gave Cole a warning and allowed him to leave without issuing him a citation. The ranger continued up the dirt road and discovered a makeshift campsite with two motorcycles — one of which had been reported stolen, and the other with expired tags. The ranger requested the California Highway Patrol’s help to impound the motorcycles.

While the ranger and a CHP officer were preparing to move the two motorcycles, Cole emerged from the brush surrounding the campsite and announced that he was coming to get his things. The ranger asked Cole if he was armed, and when Cole replied that he was, the ranger reached for his handcuffs. Cole said he would not allow the ranger to place the handcuffs on him. Cole then drew a Taurus .44-caliber revolver from the right side of his waist, pointed the weapon at the ranger and fired multiple rounds. One round struck the Ranger in the left shoulder. In response to Cole’s actions, the ranger and the CHP officer returned fire. Cole fired multiple rounds at the CHP officer and one bullet struck the officer in the right leg. Cole was struck several times by law enforcement.

After expending his ammunition and being shot multiple times, Cole gave up and was arrested. Cole, the BLM ranger, and the CHP officer received medical attention, and all survived their wounds.

In sentencing, Judge Burrell stated: “The defendant has repeatedly demonstrated that he lacks remorse and has no respect for the law. … He has a stunning lack of regard for anyone other than himself.”

“The men and women in law enforcement who serve our communities risk their lives every day they report to work,” said U.S. Attorney Wagner. “The BLM ranger and CHP officer who were shot in this case were doing nothing more than carrying out routine duties. We are gratified with today’s sentence, we appreciate the assistance and cooperation of the Nevada County District Attorney’s Office, and we will continue to make prosecuting those who put officers at risk a top priority for our office. More than anything, we are thankful that their injuries were not more severe, and that the incident did not result in a loss of life.”

“I thank the Department of Justice, Office of the United States Attorney and the many jurisdictions at the federal, state and local level who worked together to successfully prosecute this case," said BLM California State Director Jim Kenna. “On behalf of the BLM, thank you to all the brave men and women who risk their lives, backing each other up to protect America’s public lands and the people who visit them.”

“This case is illustrative of the risk law enforcement officers face on a daily basis.  Cole violently assaulted both a Bureau of Land Management officer and the CHP officer who was assisting him in his lawful duties.  Cole will now have decades to consider his willful disregard for the officer’s duty to uphold the law,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento field office. “The FBI stands ready to investigate such violent crimes against federal officers and thank our law enforcement partners for their collaboration.”

“Every day, our officers go to work not knowing what dangers they may face.  This case demonstrated not only the challenges and dangers, but also the cooperation and teamwork among agencies that protect the people of California,” California Highway Patrol Commissioner Joe Farrow said. “On behalf of the CHP, I would like to express my appreciation to United States District Judge Burrell for his deliberations in pronouncing the nearly 30-year sentence.”

This case was the product of an investigation by the Bureau of Land Management, the Federal Bureau of Investigation, the California Highway Patrol, the Nevada County Sheriff’s Office, and the Nevada County District Attorney’s Office. Former Assistant U.S. Attorney Michael D. McCoy and Assistant U.S. Attorney Heiko Coppola prosecuted the case.

SACRAMENTO, Calif. —Matthew Sarad, 42, of Bakersfield, was sentenced today to four years in prison for securities fraud, United States Attorney Benjamin B. Wagner announced.

According to court documents, Sarad lived in Folsom and was the founder and chief executive officer of Rancho Cordova-based Telomolecular Corporation. It purported to be a biotechnology startup company and claimed to have developed nanoparticle technology that could eradicate cancer and treat other age-related diseases. Between November 2005 and July 2008, Sarad solicited investors nationwide, offering them stock in Telomolecular. In selling the Telomolecular stock, Sarad made untrue statements, such as telling investors that the company believed its cancer curing products would complete clinical trials, obtain requisite government approval and make it to the market in less than three years. He also claimed Telomolecular had a deep management team with experience taking companies public. Sarad collected about $6.7 million from approximately 400 investors. Telomolecular never developed a marketable cancer-curing product, never conducted any clinical trials, never had a deep management team with experience taking companies public, and never went public.

Between January 2009 and December 2009, Sarad also owned a Folsom-based company called Sun Nanosystems. It purported to install solar energy systems for residential and commercial customers. It claimed to have developed nanoparticle technology that vastly increased the efficiency of solar panels. In selling the solar panels, Sarad falsely claimed that Sun Nanosystems worked with state-of-the-art proprietary technology that could increase the efficiency of conventional solar panels by as much as 50 percent. He claimed that Sun Nanosystems had a great deal of experience installing solar panels and had satisfied past customers. Sarad collected approximately $300,000 from customers but failed to complete installation of any solar panels.

In sentencing, United States District Judge Kimberly J. Mueller found that Sarad had engaged in a “pattern of purveying false information” and that a “significant sentence is warranted.”

“The FBI is committed to identifying and investigating corporate fraud cases and encourage those who have information about such illegal activity, wherever it may be found, to come forward,” said Supervisory Special Agent David Hanzal of the FBI's Sacramento field office. “Approximately 400 people fell victim to Sarad’s inaccurate claims and false promises regarding his company’s investment opportunities and products, resulting in significant and unacceptable losses.”

This case was the product of an extensive investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Lee S. Bickley and Christopher Hales prosecuted the case.

SACRAMENTO, Calif. — Quest Diagnostics Inc. and Quest Diagnostics Clinical Laboratories Inc. (collectively “Quest Diagnostics”) have paid the United States $1,79 million to settle claims that it violated the False Claims Act, United States Attorney Benjamin B. Wagner announced today.

This settlement resolves allegations that Quest Diagnostics submitted duplicative claims to Medicare for certain venipuncture services and diagnostic tests and certain panel tests and select components of those panels. The United States alleged that these payments violated the False Claims Act.

“We are committed to fighting fraud and abuse to help preserve scarce Medicare funds for those who need it the most, the sick and the elderly.” said U.S. Attorney Wagner.

The settlement announced today resolves a lawsuit filed in the Eastern District of California under the qui tam, or whistleblower, provisions of the False Claims Act. These provisions allow private citizens to bring civil actions on behalf of the United States and share in any recovery. The whistleblower in this case will receive $358,000 of the recovery proceeds.

This case was investigated by the United States Attorney’s Office for the Eastern District of California. Assistant United States Attorney Catherine Swann handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.

SACRAMENTO, Calif. — Anderson residents John Wesley Lane, 35, and Kelsey Ann Lane, 28, pleaded guilty today to charges related to marijuana cultivation and distribution, United States Attorney Benjamin B. Wagner announced. John Lane pleaded guilty to possession with intent to distribute at least 50 kilograms of marijuana, and Kelsey Lane pleaded guilty to concealment of a felony.

According to court documents, on December 13, 2012, law enforcement agents executed federal search warrants at three properties owned, leased, or associated with John and Kelsey Lane: a warehouse in Anderson, the Lanes’ residence, and the California Patients Collective marijuana dispensary in Redding.

From the marijuana manufacturing operation inside the Anderson warehouse, agents seized approximately 2,700 mature marijuana plants, 1,300 marijuana clones, and approximately 40 kilograms of processed marijuana. Agents seized approximately 130 pounds of processed marijuana, numerous firearms, and $51,860 from the couple’s home, and nearly 200 marijuana plants, processed marijuana, concentrated cannabis, edible marijuana, and $4,673 from the marijuana dispensary.

Federal search warrants were again executed in May 2013, after law enforcement learned the Lanes were continuing to grow marijuana. During the execution of the search warrants, agents seized 2,329 mature marijuana plants and 1,724 clones at the warehouse.

The defendants are scheduled to be sentenced by U.S. District Judge John A. Mendez on February 16, 2016. John Lane faces a maximum sentence of 10 years in prison and Kelsey Lane faces up to three years in prison. 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.

This case is the product of an investigation by the North State Marijuana Investigation Team, the Siskiyou County Narcotics Task Force, the Drug Enforcement Administration, the Bureau of Land Management, the Alcoholic Beverage Control, Shasta County Sheriff's Office, Trinity County Sheriff’s Office, Shasta Interagency Narcotic Task Force, the California Department of Justice, and the FBI. Assistant U.S. Attorney Justin Lee is prosecuting the case.

SACRAMENTO, Calif. — Three of nine defendants were arrested today for participating in a credit card fraud conspiracy aimed at Target REDcard account holders across the United States and involving hundreds of fraudulent transactions and at least 1,000 victims, United States Attorney Benjamin B. Wagner announced.

A 12-count indictment, unsealed today, charges nine defendants with conspiracy, credit card fraud, aggravated identity theft, and illegal possession of credit card-making equipment. The indictment alleges that Stockton residents Boon B. Khoonsrivong, 38; Thongchone Vongdeng, 35; Daisy Sysengrat, 29; Vuthiya Tim, 30; Meghan Paradis, 31; Sequoia Valverde, 32; Amber Collins, 30; Somaly Siv, 29; and Jaffrey Brown, 31, conspired to make and use unauthorized credit cards at large retailers, relying on fraudulently obtained victims’ identities. Today, law enforcement agents arrested Vongdeng, and Brown, in Stockton. Agents arrested Siv in Reno, Nevada. The other six defendants remain at large.

According to the indictment, between March 2014 and September 2014, the nine conspirators obtained personal information from victims through various methods. The conspirators then used that information to create unauthorized credit card accounts and used those cards and accounts to obtain things of value in excess of $1,000. Part of the scheme involved using unauthorized Target REDcard account numbers to buy large amounts of electronics, prepaid gift cards, and other goods at Target locations throughout the Sacramento area, northern California, and elsewhere. The indictment further alleges that one of the defendants, Boone B. Khoonsrivong, possessed device-making equipment with the intent to defraud and engaged in aggravated identity theft.

In all, the indictment alleges that more than 300 counterfeit and unauthorized credit card account numbers were created, used, or sold by members of the conspiracy, and over 1,000 victims have been identified as having had their identities compromised as a result of the conspiracy.

This case is the product of an investigation by the United States Postal Inspection Service and the Stockton Police Department. Assistant United States Attorneys André M. Espinosa and Rosanne L. Rust are prosecuting the case.

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

FRESNO, Calif. — Dr. Paul S. Singh, 55, of Tehachapi, pleaded guilty today to mail fraud for a scheme to defraud his patients and their insurers by implanting and billing for unapproved intrauterine devices (IUDs), United States Attorney Benjamin B. Wagner announced.

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

According to court documents, Singh bought unapproved IUDs on the Internet but fraudulently billed his patients and their insurers as if he had inserted FDA-approved IUDs, all without the permission or consent of his patients,

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

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

Singh failed to advise his patients of the risks of unapproved IUDs or of the fact that one had been implanted in them. According to the plea agreement, many of Singh’s patients later complained to him and other doctors about medical complications they associated with Singh’s insertion of the IUD. In multiple instances, Singh responded to such complaints by re-inserting the IUD rather than removing it. Some patients ultimately had to switch doctors in order to have the IUD removed.

Singh profited from the implanting unapproved IUDs by billing his patients and their insurers for the higher cost of approved IUDs, which was false and fraudulent.

United States Attorney Wagner stated: “Doctors who take shortcuts by utilizing unapproved medical devices willingly put their own financial interests ahead of their obligation to care for the health of their patients. My office is increasing its focus on health care fraud cases, and those who benefit while disregarding the health of patients will be first in line for investigation and prosecution.”

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

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

Singh is scheduled to be sentenced by United States District Judge Anthony W. Ishii on November 23, 2015. Singh faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Ramon Gomez Garcia, 44, of Arvin, pleaded guilty today to conspiracy to defraud the United States in connection with a scheme to submit hundreds of false federal tax returns in the names of third parties, United States Attorney Benjamin B. Wagner announced. His co-conspirator, Ramon Duran Gallardo, 56, of Planada, pleaded guilty to the same offense on August 12, 2015.

According to court documents, Garcia and Gallardo agreed with others to defraud the United States Internal Revenue Service (IRS) by submitting false federal income tax returns in the names of third parties. The conspirators submitted the returns with false IRS Form W-2s showing fraudulent wages and withholdings. On the basis of these false tax returns and W-2s, the conspirators fraudulently claimed tax refunds in the names of the purported taxpayers. The conspirators caused over 500 false tax returns to be filed, and Garcia and Gallardo each admitted to causing over $100,000 in false claims to the IRS.

This case was the product of an investigation by Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Megan A. S. Richards and Kirk Sherriff are prosecuting the case.

Garcia is scheduled to be sentenced on November 23, 2015, and Gallardo is scheduled to be sentenced on November 16, 2015, by United States District Judge Lawrence J. O'Neill. Garcia and Gallardo face a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Javier Solis, 29, of Fresno, was sentenced today by United States District Judge Anthony W. Ishii to 11 years and nine months in prison for sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced. On August 17, 2015, co‑defendant Michael Anthony Andrade, 34, was sentenced to 12 years and seven months in prison.

According to court documents, Andrade and Solis forced two girls, ages 15 and 17, perform sex acts for money first in Fresno and then in San Luis Obispo. In addition, the 15‑year-old girl was taken to a tattoo parlor in Fresno where the defendants’ nicknames were tattooed on her, one name on each shoulder.

Court documents further reflect the 17-year-old, a runaway, spoke with Fresno Police officers on October 24, 2013, after her mother brought her home from San Luis Obispo. While being interviewed, she told officers about the 15-year-old who was still in San Luis Obispo under the control of the defendants as well as the motel where she was staying. In response, the San Luis Obispo Police Department was contacted, and officers were able to successfully remove her from that location.

“The public should be outraged that men like Solis and Andrade market and 'rent' teens to others for profit and to the detriment of their young victims,” said Supervisory Special Agent Robert Guyton form the Fresno resident agency of the FBI's Sacramento field office. “We are thankful for our collaborative relationship with the Fresno Police Department and other law enforcement partners. Working together, we can recover victims and ensure their exploiters face justice.”

San Luis Obispo County District Attorney Dan Dow, who prosecuted the case before it was filed in federal court, commented: “Collaboration, such as occurred here between federal, state, and local agencies, is the key to stopping human trafficking networks. We are pleased with the guilty pleas and the message that this tough sentence sends to anyone involved in sex trafficking of minors. We will continue to be vigilant to seek out and take down the perpetrators of human trafficking by using the collaboration of our anti-human trafficking task force.”

This case was the product of an investigation by the Federal Bureau of Investigation, the Fresno Police Department, the San Luis Obispo Police Department and the San Luis Obispo District Attorney’s Office. Assistant United States Attorneys Michael Frye and Mia Giacomazzi prosecuted the case.

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

FRESNO, Calif. — A federal grand jury returned a 42-count indictment on Thursday against Scott L. Carlton, 46, of Visalia; Robert J. Bejarano, 46, of Kingsburg; and Matthew L. Cocola, 44, of Fresno, charging each defendant with conspiracy to defraud the government with respect to claims and false statements, United States Attorney Benjamin B. Wagner announced.

According to court documents, the IRS’s Fresno campus serves as national center for processing federal tax returns. Carlton and Bejarano were employees of E&A Protective Services, which had the government contract to supply 24-hour-a-day armed security guards to the IRS’s Fresno campus. Cocola was a certified firearms instructor doing business as Security Solutions of California & The Praetorian Diversified Institute in Clovis. When it became apparent that many of the guards could not achieve the firearms shooting score required under the contract, the indictment alleges that Carlton, Bejarano and Cocola conspired to falsify scores and supply unqualified guards to the IRS facilities. Over a three-year period, E&A was paid over $2 million on fraudulent invoices submitted to the IRS for security guards who were not qualified to work under that contract.

This case is the product of an investigation by the Treasury Inspector General for Tax Administration (TIGTA). Assistant United States Attorney Mark J. McKeon is prosecuting the case.

If convicted, each defendant faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for conspiracy defraud the government with respect to claims, and five years in prison and a $250,000 fine on each count of false statements. 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; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Stockton resident John Steven Keplinger, 56, was charged today with five counts of mail fraud in connection with an auto parts scam, United States Attorney Benjamin B. Wagner announced.

According to court documents, from 2010 to 2014, Keplinger carried out a fraud scheme by purporting to sell used auto engines from Japan, but failing to provide customers what he promised. Over 300 paying customers across 44 states and the District of Columbia were defrauded. Keplinger used three companies and websites to carry out the fraud scheme: Rising Sun Engines Inc. (www.risingsunengines.com), Shop 4 Engines LP (shop‑4‑engines.com), and Your Parts Manager (yourpartsmanager.com). Most of the time, Keplinger’s customers paid by check sent via UPS. After Keplinger accepted payment, he either sent no engine at all or sent the customer a defective engine obtained in the United States, often from a junkyard. United States Customs and Border Protection records indicate that Keplinger had stopped importing engines in 2007. The total estimated loss from Keplinger’s fraud is approximately $470,000.

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

Keplinger is currently in state custody in San Joaquin County.

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

SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment Thursday against Jesus Gonzalez-Alvizo, 25, and Reimundo Arriaga-Arriaga, 37, residents of Mexico, charging them with conspiracy to manufacture marijuana, manufacture of marijuana, possession of firearms in furtherance of a drug trafficking crime, and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.

According to court documents, on August 6, 2015, federal and state law enforcement authorities searched a marijuana cultivation site near Tedoc Gap in the Shasta-Trinity National Forest in Tehama County where they found approximately 4,838 marijuana plants growing. Gonzalez‑Alvizo and Arriaga-Arriaga were found at the site and were carrying handguns. They were arrested and are in custody pending trial.

A scientific expert who evaluated the marijuana cultivation site noted extensive resource damage at the site. The expert noted that chemical pesticides at the site included Carbofuran, a highly toxic chemical that is extremely dangerous to humans and to aquatic and terrestrial life, and which is banned in the United States.

This case is the product of an investigation by the U.S. Forest Service, the North State Marijuana Investigation Team (NSMIT), the Bureau of Land Management, and the Tehama County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.

If convicted, Gonzalez-Alvizo and Arriaga-Arriaga face a maximum statutory penalty of 20 years in prison and a $10 million fine on the conspiracy and manufacture of marijuana charges. They face a maximum statutory penalty of life in prison and a $250,000 fine on the possession of a firearm in furtherance of a drug trafficking charge. And they face up to 10 years in prison and a $250,000 fine on the depredation of public lands and resources charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. —Anthony Castaneda, 45, resident of Oakdale, pled guilty today before Judge Morrison C. England Jr. to Receipt of a Gratuity by a Public Official, United States Attorney Benjamin B. Wagner announced.

According to court documents, while working as a contracting official at the Department of Veterans Affairs, Castaneda was in a position to influence the award of construction contracts at VA facilities, including the VA hospital at the former Mather Field in Sacramento.  In 2010, a construction contractor provided Castaneda with a prepaid vacation package at a theme park worth approximately $2,243.56.  Castaneda and his family traveled to the theme park for five days in October 2010.  At the time that he accepted that gift, Castaneda was in a position to influence the award of construction contracts by making recommendations about which contractors should be given VA business.  Court records also show that Castaneda received a second vacation package from the same contractor, worth approximately $1,439, in 2008.

The contractor in question has been charged separately in federal court in San Jose: United States v. Herrera, case number 5:14-cr-219.

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

Castaneda faces a maximum statutory penalty of two 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.  A conviction can also result in Castaneda being debarred from being awarded government procurement contracts in the future for up to five years.

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SACRAMENTO, Calif. —Robert M. Schaefer, 68, of Sacramento, was sentenced today by Chief United States District Judge Morrison C. England Jr. to eleven years and four months in prison for two counts of possession of child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, from 2001 to 2010, Schaefer uploaded thousands of images of children being sexually exploited, including children under 10, to various file‑sharing websites. He would surf the Internet looking for people seeking particular types of photos, which he would then supply from his extensive collection. His computers were seized once by the Sacramento Police Department in 2006, but Schaefer rebuilt his pornography collection and began collecting and sharing the materials again. The FBI seized his computers again on 2010 after the German Federal Police provided a tip that Schaefer had recently been uploading child pornography to a file-sharing site in Germany.

In sentencing the defendant, Chief Judge England noted that the volume of the defendant’s collection of child pornography was “astronomical” and that he had served as a niche supplier of child pornography to people seeking particular types of images from all over the world.  Because of these facts, Chief Judge England ordered that the defendant serve ten years, the maximum allowable under the law, for his offense of possessing child pornography in 2010, to be followed consecutively by 16 additional months for his offense of possessing child pornography in 2006, for a total sentence of 136 months in prison.  Upon release from prison, the defendant will be required to spend the remainder of his life under the supervision of a United States probation officer, and will be required to register as a sex offender.

This case is the product of an investigation by the Federal Bureau of Investigation, the Sacramento Internet Crimes against Children Task Force, and the Sacramento Police Department. Assistant United States Attorneys Matthew G. Morris and Brian A. Fogerty are 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.

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SACRAMENTO, Calif. — Troy Lee Vickers, 49, of Sacramento, was sentenced today by United States District Judge Kimberly J. Mueller to five years in prison for receiving child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, Vickers knowingly used peer-to-peer computer software to download at least 200 child pornography videos from the Internet. Most of the videos recorded the sexual abuse of prepubescent children, some of whom appeared as young as six years old. Some of the videos involved sadistic and masochistic conduct.

This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Sheriff’s Department. Assistant United States Attorneys Matthew G. Morris and Amanda Beck prosecuted the case.

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

FRESNO, Calif. — Michael Anthony Andrade, 34, of Fresno, was sentenced today by Senior United States District Judge Anthony W. Ishii to 12 years and seven months in prison for sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced. Andrade’s co-defendant Javier Solis is scheduled to be sentenced August 24, 2015.

According to court documents, Andrade and Solis forced two girls, ages 15 and 17, to perform sex acts for money first in Fresno and then in San Luis Obispo. In addition, the 15‑year-old girl was taken to a tattoo parlor in Fresno where the defendants’ nicknames were tattooed on her, one name on each shoulder.                                                                            

Court documents further reflect the 17-year-old, a runaway, spoke with Fresno Police officers on October 24, 2013, after her mother brought her home from San Luis Obispo. While being interviewed, she told officers about the 15-year-old who was still in San Luis Obispo under the control of the defendants as well as the motel where she was staying. In response, the San Luis Obispo Police Department was contacted, and officers were able to successfully remove her from that location.

“Collaboration, such as occurred here between federal, state, and local agencies, is the key to stopping human trafficking networks. We are pleased with the guilty pleas and the message that this tough sentence sends to anyone involved in sex trafficking of minors. We will continue to be vigilant to seek out and take down the perpetrators of human trafficking by using the collaboration of our anti-human trafficking task force,” stated Dan Dow, San Luis Obispo County District Attorney.

This case is the product of an investigation by the Federal Bureau of Investigation, the Fresno Police Department, the San Luis Obispo Police Department and the San Luis Obispo District Attorney’s Office. Assistant United States Attorneys Michael Frye and Mia Giacomazzi are 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. —Jeffrey Lamson, 51, resident of El Dorado Hills, pleaded guilty today before United States District Judge John A. Mendez, to 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 located 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.

This case is 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.

Lamson is currently out of custody, and scheduled to be sentenced by Judge John A. Mendez on November 24, 2015.  Lamson faces a maximum statutory penalty of 20 years in prison and a $250,000 fine or twice the gain or loss caused by the fraud.  The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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FRESNO, Calif. — A federal grand jury returned an indictment today against Francisco Javier Gomez-Rodriguez, 37, Alejandro Ramirez-Rojo, aka Alejandro Ramires, 30, and Humberto Ceballos-Rangel, 37, all citizens of Mexico, and Anthony Isaac Santibanez, 19, of Woodlake, Calif., charging them in connection with their involvement in a large marijuana cultivation in the Sierra National Forest in Madera County, United States Attorney Benjamin B. Wagner announced.

The men were each charged with conspiracy, manufacturing marijuana, distributing marijuana, possessing marijuana with intent to distribute, and damaging public land and natural resources.  According to court documents, Ceballos-Rangel was found at a campsite within the marijuana cultivation site, where agents found 5,904 marijuana plants and a loaded firearm.  Gomez-Rodriguez, Ramirez-Rojo, and Santibanez were found a short time later approaching the grow site in a vehicle previously identified as a load vehicle used for the delivery of supplies to the grow site.  A .22 caliber rifle was also found in the load vehicle, along with .40 caliber rounds of ammunition.

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

This case is the product of an investigation by the U.S. Forest Service, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Department of Justice’s Campaign Against Marijuana Planting (CAMP), California Department of Fish and Wildlife, and Madera County Narcotic Enforcement Team (MADNET). Assistant United States Attorney Karen A. Escobar is prosecuting the case.

All but Santibanez have been ordered detained pending trial.  The defendants are scheduled to appear in federal court on August 14, 2015, for arraignment on the indictment. 

If convicted the defendants face, as to each drug count, a maximum penalty of up to 20 years in prison and up to a $1 million fine.  As to the environmental charge, the defendants face a maximum penalty of 10 years in prison and a fine of up to $250,000.  Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; each defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.