Eastern District of California

SACRAMENTO, Calif. —Glenn Litton, 47, of Carson City, Nevada, pleaded guilty today to aggravated identity theft arising from false statements he made in an application for a United States Passport, United States Attorney Benjamin B. Wagner announced.

According to court documents, on November 19, 2014, Litton submitted an application for a U.S. passport to a passport acceptance officer in Sacramento. In the application, Litton presented a number of false statements, including a false name, birthdate, and Social Security number that belonged to a real individual. Litton also presented a birth certificate, a debit card, and employment ID card all bearing the false name that he used in the passport application. As a result of the application, Litton was issued a U.S. passport in a false name.

This case is the product of an investigation by the U.S. State Department’s Diplomatic Security Service with assistance from the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Nevada Department of Motor Vehicles. Assistant United States Attorney Shelley D. Weger is prosecuting the case.

Litton remains in custody awaiting sentencing. He is scheduled to be sentenced by Judge Morrison C. England Jr. on November 12, 2015 at 9:00 a.m. Litton faces a statutory penalty of two years in prison and up to a maximum $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — U. S. Attorney Benjamin B. Wagner, Acting U. S. Attorney Christopher C. Myers (District of North Dakota), North Dakota Attorney General Wayne Stenehjem, Special Agent in Charge Richard Thornton (Minneapolis FBI), Special Agent in Charge Monica M. Miller (Sacramento FBI) and Bakersfield Chief of Police Greg Williamson announced indictments of 22 individuals in western North Dakota and seven defendants in Bakersfield on drug trafficking charges.

The indictments are a result of an investigation by the North Dakota-based Bakken Organized Crime Strike Force, which was formed to address organized crime arising from the oil boom in the Bakken region in North Dakota.

According to court documents, from June 2014 until June 2015, defendants in Bakersfield and Minot, North Dakota conspired to bring methamphetamine and heroin from Bakersfield and distribute it in Minot. The seven defendants charged in the Eastern District of California were all arrested in the Bakersfield area by FBI agents and Bakersfield police officers Tuesday morning.

Acting U.S. Attorney Chris Myers stated: “The Strike Force was designed to work as one unit to identify, target and dismantle criminal organizations working in the Bakken and reach beyond the borders of North Dakota to ensure the entire criminal organization is brought to justice. After only a few months we are seeing the efficiency, strength and extended reach provided by the Strike Force model. The results here are exactly what we hoped for when we designed the Strike Force.”

U.S. Attorney Benjamin Wagner remarked: “Cross-jurisdictional cooperation is essential for effective narcotics enforcement. We are grateful to the U.S. Attorney’s Office for the District of North Dakota for its leadership in this case, and to our state and federal law enforcement colleagues in both states for their professionalism and assistance.”

Greg Williamson, Chief of Police, Bakersfield stated: “The Bakersfield Police Department is proud to have been a part of this investigation. Criminals pay no attention to jurisdictional lines, and when a criminal enterprise crosses several states, it can quickly exceed the resources of local agencies. That’s when the capabilities of the federal authorities become invaluable in making a difference in our city’s streets and neighborhoods. We are happy to have had this opportunity to work with our law enforcement partners in North Dakota and the Federal Bureau of Investigation. We are looking forward to assisting the United States Attorney’s office in North Dakota in following through and seeing justice done in this matter.”

Two indictments charge seven Bakersfield residents in the Eastern District of California as follows:

Ricardo Cruz Gomez Jr., 23, conspiracy, distribution of methamphetamine;

Marquiz Demitric Tucker, 44, conspiracy, possession with the intent to distribute methamphetamine, racketeering;

Labrea Leshawn Davis, 29, possession with the intent to distribute methamphetamine, racketeering;

Robin Lee, 25, possession with the intent to distribute methamphetamine, racketeering;

Nina Johnson, 35, possession with the intent to distribute methamphetamine, racketeering; (Docket # 1:15-cr-209 LJO); and

Michael Muniz, 43, and Ruben Valdez Jr., 37, conspiracy to distribute methamphetamine and distribution of methamphetamine.
(Docket # 1:15-cr-211 LJO)

Assistant United States Attorney Brian Delaney of the Bakersfield office is prosecuting these cases in the Eastern District of California.

If convicted, the defendants face a statutory penalty of 10 years to life in prison and a $10,000,000 fine for the conspiracy, up to 20 years in prison and a $1 million fine for possession with the intent to distribute methamphetamine, and up to five years in prison and a $250,000 fine for racketeering. 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.

The indictment unsealed on Tuesday in North Dakota charges the following 22 defendants with trafficking methamphetamine and heroin, firearms offenses and money laundering:

Ronnie Ray Taylor, 43, Bakersfield;

Terrance Darshay Lynn Peterson, aka Turtle, 42, Minot, North Dakota;

Victor Murillo, aka Vic, 32, Bakersfield;

Debra Meladore Davis, 49, Minot;

Bryan Keith Davis, 48, Minot;

Regina Rose Lehman, 43, Minot;

Michael John Gietl, 43, Minot;

Robert Raymond Althaus, 44, Minot;

Peggy Lee St. Claire, 53, Minot;

Jade Marie Backman, 33, Minot;

Jody Lee Deharty, 25, Minot;

Ricky Dean Strahan, 56, Minot;

Gerald Wayne Osby Jr., 22, Minot;

James Alex Locklear, 27, Minot;

Alyssa Jo Schlienz, 21, Minot;

Audra Dezzari Harris, 39, Minot;

Gilbert Eugene Graim Jr., 21, Bakersfield;

Teoshalashanae M. Songcuan, 24, Bakersfield;

Deandre Trayvon Peterson, 24, Minot;

Jimmy Dale Price, 42, Minot;

Miranda Leigh Grant, 30, Minot;

Rodney Lee Jackson, 49, Carson, California.

Assistant United States Attorney Rick Volk is prosecuting these cases for the District of North Dakota.

These cases are being investigated by the Federal Bureau of Investigation, the Kern County Violent Crime and Gang Task Force, North Dakota Bureau of Criminal Investigation, Bakersfield Police Department, Minot Police Department, Ward County Sheriff’s Office, Ward County Narcotics Task Force, Drug Enforcement Administration, Metro Area Narcotics Task Force, North Dakota Highway Patrol, and United States Border Patrol, with assistance from the Kern County Probation Department.

SACRAMENTO, Calif. — Two defendants, including a DMV employee, pleaded guilty today to their roles in a conspiracy to sell Class A commercial driver’s licenses (CDLs) without the buyer having to take or pass the required tests, announced United States Attorney Benjamin B. Wagner; Tatum King, Acting Special Agent in Charge for Homeland Security Investigations (HSI) San Francisco; FBI Special Agent in Charge Monica M. Miller; and Frank Alvarez, Chief of Investigations Division, California Department of Motor Vehicles. Four more persons, including two other DMV employees, were charged in a 17‑count indictment unsealed Friday.

According to court documents, between June 2011 and March 2015, three owners of truck driving schools acted as brokers who accepted money from individuals who wanted Class A CDL without having to take and pass the required written and behind-the-wheel driving tests. The brokers used the money to bribe DMV employees to access the DMV’s computer database to submit false information that the individuals had passed the tests. This resulted in the DMV issuing official driver’s licenses to individuals who were not qualified to receive such licenses.

Emma Klem, 45, of Salinas, a DMV employee who worked in a Salinas DMV branch, and trucking school owner Kulwinder Dosanjh Singh, aka Sodhi Singh, 58, of Turlock, were charged earlier in separate criminal pleadings and entered guilty pleas this morning to conspiracy to commit bribery and to commit identity fraud. The indictment, returned Thursday and unsealed Friday, charges trucking school owners Pavitar Dosangh Singh, aka Peter Singh, 55, of Sacramento; and Mangal Gill, 55, of San Ramon; and DMV examiners Andrew Kimura, 30, of Sacramento; and Robert Turchin, 65, of Salinas, with conspiracy, bribery, and fraud in connection with identification documents. The indictment specifically references the involvement of Klem and Sodhi Singh.

“Public corruption is always a high priority for the U.S. Department of Justice, but our mission is particularly crucial when the conduct not only violates the public trust, but endangers public safety,” said U.S. Attorney Wagner. “We depend on the Department of Motor Vehicles to keep the roads of this state safe, and individuals who undermine that function for personal gain must not expect leniency from the justice system. I am pleased that DMV Investigations worked so closely with FBI, HSI, and my office to expose and prosecute this conduct.”

“These investigations and the criminal charges they produced send a very clear and loud message that the Department of Motor Vehicles takes fraud and illegal activity very seriously, and it is absolutely not tolerated,” stated Frank Alvarez, Chief Investigator, California Department of Motor Vehicles. “DMV has already taken action and cancelled or revoked a number of licenses that appear to have been obtained through fraudulent means. The department will continue to work with our federal partners to ensure that justice is served.”

“Public corruption undermines the integrity of government, compromises safety, and damages our trust in public officials and employees,” said Special Agent in Charge Monica M. Miller of the FBI Sacramento field office. “The FBI is grateful for the collaboration of the California DMV and HSI during this complex, multi-year investigation. We are committed to working with our federal and state partners to identify and investigate public corruption at any level and urge the public to contact us with any information regarding corruption in government.”

“This scheme enabled unqualified drivers to obtain licenses to operate all types of commercial vehicles,” said Tatum King, acting special agent in charge for HSI San Francisco. “The implications of putting untrained drivers behind the wheel in such cases is frankly chilling. HSI will continue to work closely with its federal and state law enforcement partners to target schemes like this that serve to enrich the perpetrators at the expense of the public’s safety.”

In order to obtain a Class A CDL to operate a commercial truck, such as an 18-wheel cargo truck, applicants must pass both a written test, which is offered in many DMV locations including Sacramento, and a behind-the-wheel test that is offered in a limited number of DMV locations including Salinas. The charges announced today are the result of investigations conducted by the Federal Bureau of Investigation, Homeland Security Investigations (HSI), and DMV Investigations which originated separately, but which combined in the course of the investigation.

The indictment charges three conspiracies. The first began in approximately June 2011 and involved Kimura, Peter Singh, and Gill, who conspired with Klem and Sodhi Singh to obtain Class A CDLs for individuals who had not taken or passed the necessary DMV examinations in return for the payment of money to employees of the DMV (bribery), and to produce identification documents without lawful authority (ID fraud). The indictment alleges that Kimura was a Licensing Registration Examiner who worked in the DMV’s office in Sacramento. He processed applications for Class A and Class B commercial and Class C non‑commercial driver’s licenses. Peter Singh owned and operated a truck driving school in Sacramento and acted as a broker to assist individuals in obtaining Class A, Class B, and Class C driver’s licenses. Gill owned and operated trucking schools in Fremont, Lathrop, Fresno, and Salinas and acted as a broker to assist individuals in obtaining Class A, Class B, or Class C licenses. Sodhi Singh owned and operated a truck-driving school in Turlock and also acted as a broker to assist individuals in obtaining Class A, Class B, and Class C licenses. Klem was a Motor Vehicle Representative who worked in the DMV’s office in Salinas. Part of her job duties included processing applications for Class A, Class B, and Class C licenses.

The second alleged conspiracy to commit bribery and ID fraud involved Gill, Klem, and DMV employee Robert Turchin, who was a Licensing-Registration Examiner working at the DMV facility in Salinas. According to the indictment, from July 2012 until April 2015, Gill acted as a broker for individuals who desired to obtain Class A or Class B CDLs without taking the requisite DMV examinations. He paid Turchin and Klem and other DMV employees to alter DMV records so that Class A and Class B CDLs would be issued to individuals who were not qualified to receive such licenses.

According to the indictment, the third conspiracy began in April 2013 and continued until July 2015 in Sacramento. It is alleged that Peter Singh paid money to Kimura to access the DMV’s computer database and alter individuals’ electronic DMV records to fraudulently and incorrectly indicate that applicants had passed examinations for Class C licenses, had passed the written examination for Class A CDLs, or had fulfilled the requirements for a Class A or Class B CDL renewal. These incorrect and fraudulent entries in the DMV database caused the DMV to issue licenses to unqualified individuals.

As part of the guilty pleas entered this morning, Sodhi Singh admitted accepting money to bribe DMV employees to obtain CDLs for individuals, and DMV employee Emma Klem admitting changing DMV data to indicate that those individuals had passed behind-the-wheel tests, when in fact they had never appeared to take the test.

Court documents indicate that the number of CDLs issued as a result of the scheme could number over 100. The investigation is continuing. DMV has already cancelled or revoked a number of licenses that appear to have been fraudulently procured, and will be reviewing the evidence to determine what additional actions may be appropriate.

These cases are the product of investigations by the Federal Bureau of Investigation, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Motor Vehicles’ Investigations Division, Office of Internal Affairs. Assistant United States Attorneys Todd Pickles and Rosanne L. Rust are prosecuting the cases.

Klem and Sodhi Singh are scheduled to be sentenced on November 17, 2015. They face a maximum statutory penalty of five years in prison and a $250,000 fine for each count. 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.

Peter Singh and Andrew Kimura were arraigned on August 7, 2015, and entered pleas of not guilty. Turchin and Gill are scheduled to be arraigned on Friday, August 14, 2015. If convicted, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine for 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. — After a six–day trial, a federal jury found Erik Hermann Green, 33, of Roseville, guilty today of five counts of wire fraud in a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Troy L. Nunley.

According to evidence presented at trial, Green was part of a large-scale mortgage fraud scheme to defraud the New Century Mortgage Company by submitting false documentation about employment, income and assets, including fraudulent loan applications and other altered bank documents. Around November of 2006, when Green submitted his fraudulent loan applications to obtain a loan for $820,000, he was a licensed real estate sales person and managed approximately 15 loan officers. As part of the scheme, Green received a check for $100,000 that was funneled through a shell company at the close of escrow. Green used the funds for personal expenses.

This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Alameda County District Attorney’s Office. Assistant United States Attorney Michael D. Anderson and Special Assistant United States Attorney Josh F. Sigal are prosecuting the case.

On September 19, 2013, co-defendant Stephen Pirt pleaded guilty to wire fraud and is awaiting sentencing on September 24, 2015. Green is scheduled to be sentenced by Judge Nunley on November 19, 2015. Green 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. — James Steven Harris, aka Steve Harris, 45, of Loma Linda, pleaded guilty today in connection with his involvement in smuggling smokable synthetic cannabinoids into prison, United States Attorney Benjamin B. Wagner announced.

Steve Harris pleaded guilty to two counts of making false statements on Federal Bureau of Prisons (BOP) visitor forms that he was not in possession of contraband, knowing that he was in possession of “spice,” a smokable synthetic cannabinoid containing XLR11. Steve Harris acknowledged that on one occasion he successfully smuggled 15.5 grams of XLR11 into the federal prison at Taft for his brother Tracy McArthur Harris, aka Trey Harris, 42, an inmate, and later attempted to smuggle 34.3 grams of XLR11, along with four packages of rolling papers, into the prison.

Synthetic cannabinoids, commonly known as “spice” or “K2,” refer to a family of substances that act on the brain in a manner similar to delta-9 THC, the main psychoactive constituent of cannabis. According to the American Association of Poison Control Centers, the effects of synthetic cannabinoid usage can be life-threatening and can include: severe agitation and anxiety; fast, racing heartbeat; nausea and vomiting; muscle spasms, seizures, and tremors; psychotic episodes; and suicidal and thoughts or actions.

Steve Harris is scheduled for sentencing on October 26, 2015, before Senior U.S. District Judge Anthony W. Ishii. He faces a maximum statutory penalty of five years in prison and a $250,000 fine, as to 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.

Tracy Harris was subject to a prison disciplinary proceeding which added more time to his current 11-year prison term. He was also sentenced last month by Judge Ishii to a consecutive one year prison term for his involvement in obtaining the smokable synthetic cannabinoids from his brother.

This case is the product of an investigation by the Federal Bureau of Investigation and the Special Investigative Supervisor’s Office of Taft Correctional Institution. Assistant United States Attorney Karen A. Escobar is prosecuting the case.

FRESNO, Calif. —Jose Antonio Reyna-Chavez (Reyna), 19, from Michoacán, Mexico, pleaded guilty today to conspiring to manufacture, distribute, and possess with intent to distribute marijuana and possessing a firearm in furtherance of a drug trafficking crime, United States Attorney Benjamin B. Wagner announced.

According to court documents, Reyna was involved in the cultivation of 1,539 marijuana plants in the Blue Canyon area of the Sierra National Forest in Fresno County when he attempted to flee from law enforcement officers. The cultivation operation was within three miles of a public campground and about seven miles from Shaver Lake. At the site, law enforcement officers found marijuana plants, processed marijuana, a digital scale, an AK-47 style assault rifle with a loaded high-capacity magazine, and a 12 gauge pump action shotgun. The marijuana cultivation operation also caused significant damage to the land and natural resources of the forest.  Six large helicopter net loads of material and debris, including fertilizer, propane tanks, and poisons, were removed from the grow site. Reyna has agreed to pay $10,000 to the U.S. Forest Service to compensate it for the cleanup costs.

This case is the product of an investigation by the U.S. Forest Service, the California National Guard, and Fresno County Sheriff’s Office with assistance from the California Department of Fish and Wildlife. Assistant United States Attorney Karen A. Escobar is prosecuting the case.

Reyna was previously detained as a flight risk and danger to the community and is scheduled for sentencing on October 26, 2015. He faces 20 years in prison and a fine of $1 million for the drug conspiracy and a mandatory minimum consecutive five year term up to life in prison for the gun 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.

SACRAMENTO, Calif. — Moctezuma Tovar, 46, of Sacramento, and Sandra Hermosillo, 53, of Woodland, pleaded guilty today to conspiring to commit wire fraud in connection with a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.

According to court documents, Tovar was the founder and president of Delta Homes and Lending Inc., a Sacramento-based real estate and mortgage lending company. Delta Homes opened one office in 2003 and eventually had five offices in Sacramento and Woodland. As the president of Delta Homes, Tovar managed the day-to-day operations of the company and prepared and submitted residential home loan applications on behalf of Delta Homes’ clients. Hermosillo was a loan officer at the Woodland office and was also responsible for submitting residential home loan applications on clients’ behalf.

Between October 2004 and May 2007, both Tovar and Hermosillo conspired with others to obtain home loans from mortgage lenders based upon false and fraudulent loan applications and supporting documents that falsely represented the borrowers’ assets and income, liabilities and debts, and employment status. They provided money to the borrowers in order to inflate their bank account balances. Once the loans were secured, the borrowers returned the money to the defendants. The aggregate sales price of the homes involved in the conspiracy was in excess of $10 million. As a result of the conspiracy, mortgage lenders and others suffered losses of at least $4 million.

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

Tovar and Hermosillo are scheduled to be sentenced by Senior United States District Judge William B. Shubb on December 7, 2015, along with co-defendants, Manuel Herrera, 35, of Sacramento, and Jun Michael Dirain, 42, of Antelope, who have already pleaded guilty in this case. Each defendant faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Co-defendants and licensed real estate agents Jaime Mayorga, 36, and Ruben Rodriguez, 38, both of Sacramento, as well as Christian Parada Renteria, 39, of Woodland, formerly a loan officer, have a trial date of September 22, 2015. The charges against Mayorga, Rodriguez and Parada Renteria are only allegations; these defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Isidro Alcazar-Tapia, 26, of Eureka, was sentenced today to seven years and three months in prison and ordered to pay $17,000 in restitution for conspiring to manufacture and possess with intent to distribute marijuana and for depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.

According to court documents, Isidro Alcazar-Tapia and his brother, Arturo Alcazar-Tapia, 31, of Eureka, conspired to grow more than 20,000 marijuana plants at two sites in the Shasta-Trinity National Forest in Trinity County. The marijuana was packaged for distribution at a house in Eureka. On August 4, 2014, law enforcement executed a search warrant at the defendants’ home in Eureka and found 33 pounds of processed marijuana divided into one pound packages and more than $6,000 in cash. At a cultivation site at Big French Creek, agents located and destroyed approximately 7,980 marijuana plants and arrested co‑defendant Ricky Martin Huerta, 21, of Eureka. At a site at Hobo Gulch Road, agents located and destroyed approximately 13,642 marijuana plants. Both grow sites are in the Shasta-Trinity National Forest. The marijuana cultivation caused significant damage to the land and natural resources of the forest that provides habitat for several threatened and endangered animal species.

At the Big French Creek site, agents observed hundreds of holes dug in the dirt containing soluble fertilizer, bags of trash, empty fertilizer bags, propane tanks, and water lines diverting water from a stream into the marijuana garden. Analysts estimate that cleaning the Big French Creek site will cost the U.S. Forest Service more than $4,000. Agents observed similar destruction at the Hobo Gulch Road site. Analysts estimate that cleaning the Hobo Gulch Road site will cost the U.S. Forest Service approximately $13,000.

All three defendants pleaded guilty in January 2015. On June 16, 2015, Judge Garland E. Burrell Jr. sentenced Ricky Martin Huerta to two years and eight months in prison. Arturo Alcazar-Tapia is scheduled to be sentenced on October 23, 2015.

This case is the product of an investigation by the United States Forest Service, the Humboldt County Drug Task Force, North State Marijuana Team, and the Trinity County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.

FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Macedonio Madrigal-Herrera (Madrigal), 44, and Ezequiel Armas-Ortiz (Armas), 49, both of Mexico, charging them with conspiring to cultivate, distribute and possess with intent to distribute marijuana; cultivating and possessing with intent to distribute marijuana; and damaging public land and natural resources as a result of the large-scale marijuana cultivation operation, United States Attorney Benjamin B. Wagner announced.

According to court documents, on July 30, 2015, Madrigal and Armas were found at the cultivation site in the Brush Creek drainage in the Sequoia National Forest in Tulare County during the execution of a federal search warrant. Agents removed 2,719 marijuana plants from the site and found toxic chemicals, fertilizer, and trash strewn throughout. The cultivation activities caused extensive damage to the land and natural resources. Trees and plants, newly generated following the 2002 McNally Fire, were cut down to make room for the marijuana. Water was diverted from a nearby stream that supports trout.

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

Armas and Madrigal were previously ordered detained as a flight risk and danger to the community and are scheduled for arraignment on the indictment on August 12, 2015, in federal court in Fresno. If convicted of the drug offenses, they face a maximum statutory penalty of 20 years in prison and a $1 million fine as to each count. If convicted of the environmental crime, the defendants face a maximum statutory penalty of 10 years in prison, a $250,000 fine, and restitution. 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. — Toribio Cruz-Galvan (Cruz), 30, of Turicato, Michoacán, Mexico, was sentenced today to two years in prison for conspiring to manufacture, distribute, and possess with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced.

His sentence follows his guilty plea earlier this year. According to court documents, Cruz was involved in the cultivation of 1,016 marijuana plants and processing 51 pounds of dried marijuana in the Yucca Mountain area of the Sequoia National Park. Although he was not found at the cultivation site, Cruz was linked to the grow site through his fingerprints, which were found on equipment and materials located in the grow site, as well as a supply vehicle intercepted several days before the discovery of the grow site.

The Yucca Mountain area is generally known for its spring wildflower display. In addition to the marijuana plants, park rangers found processed marijuana, a shotgun, ammunition for various firearms, and a digital scale at the cultivation site. The operation caused significant damage to National Park land and natural resources. Fertilizer, rodenticide, propane tanks, and 300 pounds of trash were removed from the grow site. It is estimated that over one million gallons of water was diverted from a nearby spring to irrigate the marijuana plants.

This case was the product of an investigation by the National Park Service. Assistant United States Attorney Karen A. Escobar prosecuted the case.

FRESNO, Calif. — Abel Martin Carreon, 57, of Fresno, was sentenced today by Senior United States District Judge Anthony W. Ishii to five years and five months in prison for one count of mail fraud and one count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced.  Carreon was also ordered to pay $1,253,000 in restitution.

According to court documents, between April 2005 and May 2011, Carreon carried out a scheme to defraud the United States and private companies seeking to perform contracted work for the United States. Through his company Tripartite Escrow Corporation (TEC), he offered bonding services to prospective government contractors throughout the United States that included bid bonds to secure a bid on a government contract and performance and payment bonds to insure the work on a government contract.

Surety bonds are required for certain federal government contracts. If a contractor defaults, the surety bonds compensate the government for the financial loss incurred. To be acceptable under federal regulations the bonding company must pledge acceptable assets with a value equal to or exceeding the amount of each bond, and submit a sworn affidavit disclosing the identity of the surety and verifying the existence and acceptability of the assets under penalty of prosecution.

According to the plea agreement, the bond packages Carreon submitted contained false statements and fraudulent documents. He pledged as collateral common stock that did not exist, was worth substantially less than represented, or was pledged across multiple bonds without full disclosure. He used forged notary stamps and notary signatures and other forged signatures on the bond documents.

Once the false and fraudulent performance and payment bonds were accepted by the contracting government agency and work began under the contract, the government would make payments on the contract to the contractor, including Carreon’s bond premium. The United States and government contractors paid Carreon for false and fraudulent payment and performance bonds, which resulted in a loss of approximately $1,250,000.

"As evidenced by the sentence handed down against Able Carreon, the Department of Transportation Office of Inspector General (DOT OIG) remains steadfast in its commitment to maintaining the integrity of the Nation’s transportation infrastructure programs," said William Swallow, regional Special Agent-In-Charge, DOT OIG. "Working with our law enforcement and prosecutorial colleagues, we will continue to protect the taxpayers’ investment in our nation’s infrastructure from fraud, waste, abuse and violations of law.”

“Today’s sentencing of Abel Martin Carreon reaffirms the Department of Homeland Security (DHS), Office of Inspector General’s (OIG) commitment to aggressively pursue, investigate, and hold accountable those who commit fraud against DHS and the Federal Emergency Management Agency.  Protecting the integrity of DHS programs and operations remains one of the highest priorities of DHS OIG.  We would like to thank our law enforcement partners and the U.S. Attorney’s Office for their outstanding efforts in this matter.” Roger T. Merchant, Special Agent in Charge, DHS OIG, Los Angeles Field Office.

This case was the product of an investigation by the U.S. Department of Transportation, Office of Inspector General; the U.S. Department of the Interior, Office of Inspector General; the U.S. Department of Defense, Office of Inspector General; the U.S. Army, Criminal Investigation Command; the U.S. Air Force, Office of Special Investigations; the Defense Criminal Investigative Service; the U.S. Department of Agriculture, Office of Inspector General; the Department of Homeland Security, Office of Inspector General; and the U.S. General Services Administration, Office of Inspector General. Assistant United States Attorney Henry Z. Carbajal III prosecuted the case.

FRESNO, Calif. —John Derek Gitmed, 53, of Los Angeles, pleaded guilty today to one count of trafficking in counterfeit goods, United States Attorney Benjamin B. Wagner announced.

According to court documents, Gitmed, along with his ex-wife, Holly Gitmed, 39, of Riverbank, his daughter Felicia Gitmed, 24, of Los Angeles, and his nephew Anthony Pollino, 37, of Los Angeles, conspired to obtain counterfeit copies of the erectile-dysfunction drugs Viagra®, Cialis®, and Levitra®, along with their packaging, and sell them to consumers throughout California and in the Las Vegas, Nevada area. The defendants assured buyers their products were genuine, when they were actually cheaply made foreign copies of the drugs. The defendants operated as a business, calling their operation the “California Confidence Company.” Gitmed admitted that the value of the counterfeit products attributable to him as over $1.2 million.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Michael G. Tierney and Henry Z. Carbajal III are prosecuting the case.

Gitmed is in custody and is scheduled to be sentenced by Senior United States District Judge Anthony W. Ishii on October 19, 2015. He faces a maximum statutory penalty of 20 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.

Each of Gitmed’s co-defendants previously pleaded guilty to one count of trafficking in counterfeit goods. Holly Gitmed pleaded guilty on June 8, 2015, and is scheduled to be sentenced on August 24, 2015. Felicia Gitmed pleaded guilty on June 22, 2015, and is scheduled to be sentenced on January 25, 2016. Anthony Pollino pleaded guilty on July 20, 2015 and is scheduled to be sentenced on October 5, 2015.

FRESNO, Calif. — Sherise Lanelle Woolridge, 33, of Atwater, was sentenced today for mail fraud and aggravated identity theft for her role in a student aid fraud scheme, United States Attorney Benjamin B. Wagner announced. United States District Judge Lawrence J. O’Neill sentenced her to four and a half years in prison and ordered her to pay $347,732 in restitution.

According to court documents, Woolridge participated in a scheme to defraud the United States Department of Education of student aid grants and loans. She submitted false financial aid applications to Axia College at the University of Phoenix and Capella University on behalf of students who did not intend to attend either school. She also used stolen or wrongfully obtained personal identifying information of another person to apply for college financial aid. As a result of the scheme to defraud, more than $370,000 in grants and loans were disbursed.

Federal student aid exists so that individuals can pursue and make their dream of a higher education a reality.  It is not, as Ms. Woolridge just found out, a personal slush fund,” said Natalie Forbort, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Western Regional Office. “I’m proud of the work of OIG special agents and our law enforcement colleagues for holding Ms. Woolridge accountable for her criminal actions.  Her sentence should serve as a warning to anyone who intentionally steals or misappropriates Federal student aid dollars: you will be caught and prosecuted to the fullest extent of the law.”

This case is the result of the U.S. Department of Education Office of Inspector General’s criminal investigations aimed at shutting down fraudulent schemes that seek to exploit federal student aid programs. The U.S. Postal Inspection Service assisted in the investigation. United States Attorney Mark J. McKeon is prosecuting the case.

SACRAMENTO, Calif. — Donald J. Peel, 64, of Las Vegas, Nevada, was sentenced today by United States District Judge Garland E. Burrell Jr. to 17 and a half years in prison for transportation of a minor with the intent to engage in unlawful sexual activity, United States Attorney Benjamin B. Wagner announced.

In sentencing, Judge Burrell stated, “I cannot turn a blind eye to the nature and circumstances of the offense:  they are despicable. …  He is a danger to society who remains undeterred even after countless run-ins with the law.”

According to court documents and evidence presented during the jury trial, Peel took a 16-year-old girl from Las Vegas and moved her through five western states before he was arrested in Weed, California on March 19, 2014, where law enforcement found him with the minor. During the trip, Peel purchased and gave the 16-year-old illicit drugs, even administering methamphetamine to her intravenously, then had sex with the victim, sometimes multiple times a day, for all or most of the entirety of the trip. Needles used by the defendant to inject his victim with methamphetamine were found in his vehicle and introduced as evidence at trial.

Evidence at trial showed that Peel took extensive steps during the trip to isolate his victim and make her entirely dependent upon him, to conceal her age, and to conceal their identities, as he moved her through Nevada, Arizona, California, Oregon and Washington in a vehicle in which her door would not open. When she was found by law enforcement, she was famished and dirty. During the trial, the Peel’s Las Vegas girlfriend testified that Peel wanted to “clean up” the victim to prostitute her. Peel’s girlfriend also testified that Peel had attempted to marry her so that she would not be able to testify against him at trial.

This case was the product of an investigation by the Federal Bureau of Investigation, the California Highway Patrol, the Weed Police Department, Siskiyou Juvenile Probation Department, and the Franklin County Sheriff’s Office in Washington. Assistant United States Attorneys Michael M. Beckwith, Sherry D. Haus, and Matthew G. Morris prosecuted the case.

SACRAMENTO, Calif. — Capital Sweepstakes Systems Inc., a corporation headquartered in Loomis, and Kevin Freels, 41, of Loomis, pleaded guilty today to conducting an illegal gambling business related to Internet sweepstakes cafés, United States Attorney Benjamin B. Wagner announced. As part of its plea agreement, Capital Sweepstakes agreed to forfeit over $1.5 million in profits generated through its illegal gambling business. These funds were previously seized by the United States in a related proceeding.[1]

“California and the federal government have enacted laws intended to regulate the gambling industry and protect the public,” said U.S. Attorney Wagner. “Today’s pleas are the result of Capital Sweepstakes’ attempt to avoid those laws while building a sprawling and lucrative enterprise based upon a purported sweepstakes game that was in fact the functional equivalent of a slot machine.”

“As exemplified by the elaborate and illegal fictions used by Capital Sweepstakes Systems, the FBI will investigate efforts to subvert lawful gambling regulations,” said Special Agent in Charge Monica Miller of the FBI’s Sacramento field office. “Thanks to a strong partnership between the FBI, the Internal Revenue Service – Criminal Investigation, and the California Bureau of Gambling Control, we were able to stop this criminal activity and deter others from circumventing the law.”

“Capital Sweepstakes profited by targeting low-income communities, misrepresenting their unregulated slot-machine style operations as legal enterprises and creating magnets for crime,” said Attorney General Kamala D. Harris. “My office is dedicated to combatting and dismantling illegal gambling operations statewide. I thank our Gambling Task Force and the Bureau of Gambling Control for their investigative work.”

According to court documents, from January 2013 to September 2014, Capital Sweepstakes provided software and hardware systems for Internet sweepstakes cafés throughout California. Freels had an office at the Capital Sweepstakes headquarters, was the president of the software company that provided the sweepstakes software, and received a significant portion of the revenues generated by Capital Sweepstakes. Freels assisted in overseeing operations and financial dealings at Capital Sweepstakes.

At Internet sweepstakes cafés, customers purchased sweepstakes entries, which were often loaded onto plastic cards with magnetic strips. The customers could then swipe the cards at specially programmed computer terminals inside the cafes and play a variety of gambling-themed games, with names such as Hot Luck Keno, Tropical Treasures, Dreamcatcher, Lucky Puppy, and Luck of the Irish. These games looked and sounded like casino-styled slot machines, and the results of the games revealed whether or not the customer “won” the sweepstakes. Customers were eligible to win cash prizes from the sweepstakes, which were paid at the location of play. The sweepstakes results were not actually dependent upon the outcome of the games, but were predetermined through the Capital Sweepstakes software. Capital Sweepstakes would later send an invoice to the location to receive a previously agreed upon percentage of its profits. Capital Sweepstakes was able to do this because it tracked the sweepstakes activity on its servers remotely. This type of online gaming was conducted entirely outside the state gambling regulatory scheme. In a decision issued last month, the California Supreme Court confirmed that such games are illegal.[2]

Many Internet sweepstakes cafés in Sacramento, West Sacramento, and Stockton used Capital Sweepstakes software. Based on bank records, Capital Sweepstakes also had operations in other states, including Hawaii and Texas.

This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Agents from the California Bureau of Gambling Control also provided assistance. Assistant United States Attorneys Jared Dolan, Christopher Hales, and Kevin Khasigian are prosecuting the case.

As part of a parallel civil settlement with the California Attorney General’s Office, Capital Sweepstakes Systems entered into a stipulated judgment of $700,000.

Kevin Freels and Capital Sweepstakes Systems Inc. are scheduled to be sentenced by Chief United States District Judge Morrison C. England Jr. on November 5, 2015. Capital Sweepstakes faces a maximum statutory penalty of five years’ probation and a $500,000 fine. Freels faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

 

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[1] 2:14-mc-00134-MCE

[2] People ex rel. Green v. Grewal, 61 Cal. 4th 544 (2015)

FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Kenneth Dwayne Choate, 51, of Pismo Beach, charging him with manufacturing counterfeit U.S. currency, United States Attorney Benjamin B. Wagner announced. Choate was ordered detained by Judge Stanley A. Boone on July 23, 2015, after being arrested on a federal criminal complaint.

According to court documents, on May 31, 2015, a vendor at the Visalia Swap Meet reported to law enforcement that someone was passing counterfeit money. The investigation led to Choate, who had a motel room in Visalia. Officers obtained a search warrant for the room, and contacted Choate and a co-conspirator at the front door of the room. A search was conducted and officers found more than $30,000 in counterfeit bills, multiple printers, numerous boxes of drafting paper, and printing and cutting supplies.

This case is the product of an investigation by the U.S. Secret Service, with assistance from the Tulare County Sheriff’s Office. Assistant U.S. Attorney Grant B. Rabenn and Special Assistant U.S. Attorney Katherine A. Plante are prosecuting the case.

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

SACRAMENTO, Calif. — Thomas Jopson, 66, and David Jopson, 64, of Rio Oso, were sentenced today by United States District Judge John A. Mendez to one year in prison for conspiring to cultivate marijuana, United States Attorney Benjamin B. Wagner announced.

The Jopsons were ordered to surrender to the United States Marshals Service to begin serving their sentences on September 24, 2015.

According to court documents, on June 21, 2011, federal and state agents executed seven federal search warrants in Sacramento, Sutter, and Tehama Counties. Two of these warrants were executed at the sites of large, commercial greenhouses at the Jopson Ranch in Rio Oso and at Cal-Nevada Wholesale Florist in Sacramento. Law enforcement officers seized over 5,000 marijuana plants including approximately 2,168 marijuana plants at the Jopson Ranch. Two leaders arrested at the grow sites, Yan Ebyam and Aimee Sisco, admitted their involvement in the marijuana cultivation business. While in clear violation of federal law, the Jopson Ranch Grow attempted to use California medical marijuana law to cloak their business activities. A total of 12 defendants were later indicted for crimes relating to their marijuana cultivation in this, and a related case currently pending in the Eastern District of California.

The enforcement action taken against these commercial marijuana manufacturing operations was consistent with U.S. Department of Justice policy to prosecute persons who are in the commercial business of cultivating, selling, or distributing marijuana, and those who knowingly facilitate such activities.

Last week, Judge Mendez sentenced Aimee Sisco, 34, of Redding, to 38 months in prison after she pleaded guilty to conspiring to cultivate marijuana with the Jopsons and others.

On July 1, 2014, Ebyam pleaded guilty to conspiring to cultivate marijuana in this case, and the related case of United States v. Ebyam, et al. (2:11-CR-276 JAM). His sentencing is set for October 27, 2015.

This case was the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, the Sutter County Sheriff’s Department, and the California Bureau of Narcotic Enforcement. It was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

SACRAMENTO, Calif. —William Glenn Green, 48, of Sacramento, pleaded guilty today to assisting in the preparation of false tax returns, United States Attorney Benjamin B. Wagner announced.

According to court documents, while Green prepared tax returns at a Sacramento business called “Will the Tax Man” from 2007 to at least April 2011, he knowingly placed false information on his clients’ returns to increase their refunds or reduce their taxes owed. The false information that Green added included false charitable contributions in large round numbers to charities like Amvets and United Cerebral Palsy, and other deductions and credits related to education and business expenses. The false deductions and credits were not based on information provided by Green’s clients, and Green typically did not inform his clients that these false deductions and credits had been added. Green’s conduct resulted in a total tax loss of approximately $492,000.

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

Green is scheduled to be sentenced by United States District Judge Kimberly J. Mueller on October 14, 2015. Green faces a maximum statutory penalty of three years in prison and a $100,000 fine, and can also be ordered to pay restitution to the Internal Revenue Service. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Tony Herrin, 36, resident of Reno, Nevada, was sentenced today by United States District Judge Kimberly J. Mueller to two years and nine months in prison and restitution of $411,333 for theft of government property, United States Attorney Benjamin B. Wagner announced.

According to court documents, Herrin worked as a civilian employee at the Sierra Army Depot (SIAD) in Herlong. As part of his job responsibilities, Herrin received, catalogued, and inventoried military equipment returned from Iraq and Afghanistan. Herrin worked in the same building as co-worker Devon Biggs, who pleaded guilty and was sentenced to 16 months in prison in a related case. While working at SIAD, Herrin and Biggs stole numerous items of sophisticated military equipment. Herrin played a role in stealing 10 Taser devices, three Vectronix target acquisition systems (total value $221,787), six military grade flashlights (total value $11,267), and 25 thermal imaging sights. The total value of all these items is approximately $411,000. On at least two occasions, Herrin and Biggs met with potential buyers for the military equipment.

This case was the product of investigation by the Law Enforcement Division of the United States Army, Naval Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorneys Jean Hobler and Christiaan Highsmith prosecuted the case.

SACRAMENTO, Calif. — Bryan H. Nishimura, 50, of Folsom, pleaded guilty today to unauthorized removal and retention of classified materials, United States Attorney Benjamin B. Wagner announced.

U.S. Magistrate Judge Kendall J. Newman immediately sentenced Nishimura to two years of probation, a $7,500 fine, and forfeiture of personal media containing classified materials. Nishimura was further ordered to surrender any currently held security clearance and to never again seek such a clearance.

According to court documents, Nishimura was a Naval reservist deployed in Afghanistan in 2007 and 2008. In his role as a Regional Engineer for the U.S. military in Afghanistan, Nishimura had access to classified briefings and digital records that could only be retained and viewed on authorized government computers. Nishimura, however, caused the materials to be downloaded and stored on his personal, unclassified electronic devices and storage media. He carried such classified materials on his unauthorized media when he traveled off-base in Afghanistan and, ultimately, carried those materials back to the United States at the end of his deployment. In the United States, Nishimura continued to maintain the information on unclassified systems in unauthorized locations, and copied the materials onto at least one additional unauthorized and unclassified system.

Nishimura’s actions came to light in early 2012, when he admitted to Naval personnel that he had handled classified materials inappropriately. Nishimura later admitted that, following his statement to Naval personnel, he destroyed a large quantity of classified materials he had maintained in his home. Despite that, when the Federal Bureau of Investigation searched Nishimura’s home in May 2012, agents recovered numerous classified materials in digital and hard copy forms. The investigation did not reveal evidence that Nishimura intended to distribute classified information to unauthorized personnel.

This case was the product of an investigation by the Naval Criminal Investigative Service (NCIS) and the Federal Bureau of Investigation. Assistant United States Attorney Jean M. Hobler prosecuted the case.

SACRAMENTO, Calif. — United States District Judge William B. Shubb sentenced Joe L. Regalado, 41, of Stockton, to one and one half years in prison for trafficking in counterfeit goods, United States Attorney Benjamin B. Wagner announced.

According to court documents, over a nearly two-year period, Regalado trafficked in goods bearing counterfeit trademarked insignia. When he was arrested in December 2011, Regalado was selling counterfeit college sports jerseys, Major League Baseball jerseys and hats, National Basketball Association jerseys, National Football League jerseys and caps, National Hockey League jerseys, and counterfeit clothing bearing trademarks from Chanel, Prada, Juicy Couture, Louis Vuitton, Christian Audigier, Polo, True Religion, Coach, Burberry, Gucci, and Nike. As part of his sentence, Regalado was ordered to pay over $111,000 in restitution to sports teams whose logos were on the goods that he was caught selling, and to forfeit ownership of two cars and a garage full of counterfeit goods that were recovered by the FBI when they searched his house.

This case was the product of an investigation by the Sacramento High Tech Crimes Task Force, which includes representatives from state and federal law enforcement agencies including the Sacramento County Sheriff’s Office and the Federal Bureau of Investigation. Assistant United States Attorney Matthew Morris prosecuted the case.

FRESNO, Calif. —Jimmy Gil, aka Joselin Jimelet Gil Sanchez, aka Joselin Gil, aka Gilberto Sanchez, 35, of Shafter, was sentenced today to five years in prison for conspiring with Jose Luis Montoya-Salazar, (Montoya), 42, of Mexico City, 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 separate civil proceeding, U.S. District Judge Lawrence J. O’Neill ordered the forfeiture of $3,104,661 in cash that agents seized during the investigation of the criminal case.

Gil’s sentence follows his guilty plea in May 2015. In pleading guilty, Gil admitted that he had conspired with Eslava, the driver of a tractor trailer containing cocaine smuggled into the United States from Mexico at the Otay Mesa Port of Entry, to a location in Bakersfield. After Gil took possession of the tractor trailer, he and Montoya began unloading 18 one-kilogram packages of cocaine from a hidden compartment in the underside of the trailer and placing the cocaine in Montoya’s vehicle. Gil and Montoya were arrested before they were able to unload 20 more kilograms of cocaine concealed in the trailer. Follow-up investigation resulted in the seizure of $3,104,661 in cash hidden in an asphalt roller at the residence of an associate of Gil. The seized cocaine has a street value of over $3 million.

“Through our joint enforcement efforts, we’ve dismantled a criminal organization that posed a serious public safety threat, as evidenced by the amount of cocaine seized,” said Michael Toms, resident agent in charge for Homeland Security Investigations (HSI) Bakersfield. “As this sentence demonstrates, HSI is working closely with its law enforcement partners to prevent these dangerous and addictive drugs from reaching our streets and ensure the perpetrators of such attempts are brought to justice.”

“This investigation began with a tremendous amount of inter-agency coordination and finished with good old fashioned police work. The forfeiture of $3.1 million has dealt a substantial blow to this criminal organization and these illicit proceeds will be put back into communities through local law enforcement efforts,” stated DEA Acting Special Agent in Charge Bruce C. Balzano.

Eslava and Montoya previously pleaded guilty. On July 20, 2015, Eslava was sentenced to two years and eight months in prison. Montoya is scheduled to be sentenced on September 21, 2015.

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

FRESNO, Calif. — Thomas Bettis, 54, of Tehachapi, was sentenced today by United States District Judge Anthony W. Ishii to 15 years in prison for receiving and distributing child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, between January and March 2013, Bettis received and distributed more than 600 images and video files depicting minors engaged in sexually explicit conduct as attachments to email messages. The illicit files also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors. Bettis was charged with receiving and distributing child pornography on September 4, 2014, and pleaded guilty to this charge on January 12, 2015.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Brian W. Enos is prosecuting the case.

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

FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Stephen Stinson, 45, of Fresno, today to 10 years in prison for being a convicted felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.

According to court documents, on January 22, 2014, police officers stopped Stinson for driving while using a cellphone. The officers noticed a large blade protruding from under the driver’s seat and saw a knife on the passenger’s seat. Officers discovered that Stinson had no driver’s license, was on probation and had a warrant for his arrest. During a search of the car, officers found a sawed-off shot gun and ammunition. Stinson had two prior felony convictions and was prohibited from possessing a firearm.

“Every time we seize a single firearm from a convicted felon, we prevent impending violent acts from occurring in our neighborhoods,” stated ATF Acting Special Agent in Charge Eric D. Harden. “ATF and our partners will not surrender to those who are a threat to our communities and cannot lawfully possess a firearm.”

This case is a product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. The case is part of Project Safe Neighborhoods, which is a joint initiative to combat gang and gun violence. Assistant U.S. Attorneys Kimberly Sanchez and Patrick R. Delahunty prosecuted the case.

FRESNO, Calif. —Tryvell Powell, 34, of Fresno, pleaded guilty today to sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.

According to the plea agreement, Powell communicated with a 16-year-old girl on Facebook and persuaded her to leave Modesto where she was living and travel to Fresno. She then engaged in sex acts with strangers at Powell’s request for his monetary benefit.

According to court documents, a relative of the girl reported seeing pictures of the teen in an online advertisement for prostitution. Fresno detectives used the advertisements to contact the girl and to arrest Powell.

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

Powell is scheduled to be sentenced on October 19, 2015, in federal court in Fresno by United States District Court Judge Lawrence J. O’Neill. Powell faces a minimum of 10 years to life in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case 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. — Leonardo Pesta, 47, of Mountain View, pleaded guilty today to one count of wire fraud stemming from a fraud scheme involving 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.

Pesta 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. Pesta pleaded guilty to taking part in a scheme to cause DOCUPAK to issue unearned recruiting compensation by falsely claiming that various enlistees had been referred to recruiting offices by the Recruiting Assistants that participated in the scheme with Pesta, 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.

Pesta is scheduled to be sentenced by United States District Court Judge Lawrence J. O’Neill on October 19, 2015. He 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.

Six other National Guard members were also indicted in May 2014 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. The charges against the rest of the defendants are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A Stockton oncologist has paid the United States $736,000 to settle allegations that he improperly billed Medicare, Medicaid, and Tricare for certain chemotherapy drugs purchased from an unlicensed foreign pharmaceutical distributor, United States Attorney Benjamin B. Wagner announced today.

The United States alleged that, over a two-year period ending in May 2011, Dr. Neelesh Bangalore billed and received reimbursement from Medicare, Medicaid, and Tricare for such drugs in violation of the federal False Claims Act. Bangalore purchased chemotherapy drugs from Warwick Healthcare Solutions Inc., also known as Richards Pharma (Warwick), a former United Kingdom-based drug distributer that did not have a license to distribute drugs in the United States. Bangalore administered certain of these medications to his patients, billing several federal healthcare programs, including Medicare. One medication he purchased from Warwick was Altuzan, a drug not approved by the FDA. In addition, the FDA tested a batch of Altuzan that Bangalore had purchased from Warwick and determined that it was counterfeit and lacked the active ingredient bevacizumab.

“Investigating healthcare related fraud allegations is one of our office’s top priorities,” said U.S. Attorney Wagner. “Particularly in cases where Medicare and Medicaid beneficiaries receive compromised care or ineffective medication, these investigations serve a dual purpose of protecting the public and recovering federal funds.”

“Patients—especially those battling cancer and other life-threatening illnesses—should be able to trust that their physicians only use medicines approved by the FDA, medicines proven to be safe and effective,” said Special Agent in Charge Ivan Negroni of the U.S. Department of Health and Human Services Office of Inspector General. “Our agency will continue to pursue health care providers that ignore requirements designed to protect patient health and federal health care programs.”

“For drugs that enter the U.S. from outside the FDA-regulated distribution system, there is no guarantee that the drug is safe and effective for patients to use,” said Lisa L. Malinowski, Special Agent in Charge of the FDA Office of Criminal Investigations’ Los Angeles Field Office. “We will continue to work to protect the health of patients who rely on prescription drugs and to ensure the safety and effectiveness of those drugs.”

This case was investigated by the U.S. Department of Health and Human Services Office of Inspector General, the FDA’s Office of Criminal Investigations, the Defense Criminal Investigative Service, and the Defense Health Agency. Assistant United States Attorneys Vincente A. Tennerelli and Kurt A. Didier represented the United States in this matter. The claims settled by this agreement are allegations only, and there has been no determination of liability.

FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Juan Pedro Jimenez, 39, of Ensenada, Mexico, charging him with conspiring to manufacture, distribute and possess with intent to distribute, manufacturing, and possessing with intent to distribute marijuana in connection with a large-scale cultivation operation in a national forest, United States Attorney Benjamin B. Wagner announced. Jimenez was also charged with damaging public land and natural resources as a result of the marijuana cultivation activities.

According to court documents, on July 8, 2015, Jimenez was found at the cultivation site on Chowchilla Mountain in the Sierra National Forest in Mariposa County. Agents removed 6,919 marijuana plants from the site and found fertilizer, trash, water lines, propane tanks, and other harmful material. The cultivation activities caused extensive damage to the land and natural resources. Native trees and plants were cut down and steep hillsides were terraced to plant the marijuana. Water was diverted from a nearby creek to irrigate the plants.

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

Jimenez was ordered detained pretrial and is scheduled for arraignment on the indictment on July 24, 2015, in federal court in Fresno. If convicted of the drug offenses, he faces a mandatory minimum statutory penalty of five years and a maximum statutory penalty of 40 years in prison and a $5 million fine for each count. If convicted of the environmental crime, Jimenez faces a maximum statutory penalty of 10 years in prison, a $250,000 fine, and restitution. 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. — Paul Ross Pacini, 46, of Rocklin, pleaded guilty today to receipt of child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, an undercover investigation revealed that in June through August of 2013, Pacini used a peer-to-peer file-sharing network to share more than 300 files of pictures and videos depicting the sexual exploitation of children, including videos involving children under the age of 10. A search warrant executed at Pacini’s home revealed that his computers contained more than 2,500 images and more than 900 videos depicting the sexual abuse of children, and that at various times many of those videos were made available to others over the Internet through a file-sharing network.

This case is the product of an investigation by the Sacramento County Sheriff’s Department's Internet Crimes Against Children Task Force. Assistant United States Attorney André M. Espinosa is prosecuting the case.

Pacini is scheduled to be sentenced on October 7, 2015, by United States District Judge Kimberly J. Mueller. Pacini faces a possible sentence of five to 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

SAN JOSE, Calif. — A supervisory postal inspector working at the San Jose Processing and Distribution Center pleaded guilty today to possession of stolen U.S. mail and possession with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced.

On June 26, 2014, following an investigation and the execution of a search warrant at his house and office, Quan Pham Howard, 53, of Saratoga, California, was arrested and charged with theft of mail.

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

Howard also admitted that he attempted to obstruct justice when he became aware of the investigation. On July 2, 2014, Howard contacted a former USPS employee whom he had supervised and attempted to influence the employee’s testimony with instructions regarding what to remember about Howard's prior supervision. In addition, Howard repeatedly contacted one of his former supervisors at the San Jose Postal Inspection Service Office, attempting to get her to support his false explanation for his possession of stolen property.

U.S. Attorney Wagner stated: “When those who are supposed to enforce the law exploit it, they go beyond merely violating the law and damage the trust between law enforcement and the communities we are sworn to protect. We will continue our efforts to nurture that trust by working with our law enforcement partners to vigorously investigate and prosecute such cases.”

U.S. Postal Service Office of Inspector General, Special Inquiries Division, Area Special Agent in Charge Curtis Lembke stated: “This criminal behavior within the Postal Service is not tolerated. The overwhelming majority of Postal Service employees who serve the public are honest, hardworking, and trustworthy individuals who would never consider engaging in any type of criminal behavior.”

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

Howard is scheduled to be sentenced on November 18, 2015, by United States District Judge Lucy H. Koh. Howard faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Patricia Jane Albright, 64, of Nevada City, pleaded guilty on Monday to conspiring to manufacture marijuana, manufacturing marijuana, and structuring currency transactions to evade federal reporting requirements, United States Attorney Benjamin B. Wagner announced.

On September 18, 2014, Albright’s son and co-conspirator, Jordan Wirtz, pleaded guilty to federal firearms charges. On February 26, 2015, the Honorable Troy L. Nunley sentenced Wirtz to five years in prison.

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

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

Albright is scheduled to be sentenced by Judge Nunley on December 3, 2015. The plea agreement contemplates a sentence of five years and five months in prison. The actual sentence, however, will be determined at the discretion of the court at the hearing.

This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation; the U.S. Drug Enforcement Administration; the California Department of Justice; and the sheriff’s offices of Nevada County, Placer County, and  El Dorado County. Assistant United States Attorney Michael M. Beckwith is prosecuting the case.

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

FRESNO, Calif. — Earlier today an indictment was unsealed charging Pablo Cesar Sahagun, 26, of Bakersfield, in connection with laser strikes of a police helicopter and possessing seven bombs, United States Attorney Benjamin B. Wagner announced. The indictment was returned by a federal grand jury on July 16, 2015.

Sahagun was charged with aiming the beam of a green laser pointer at Air-1, a Kern County Sheriff’s Office helicopter. According to court documents, the laser pointer was key‑activated and was labeled a Laser 301, a device which purports to have strong burning capabilities. Sahagun was also found to be in possession of seven CO2 cartridge or cricket bombs. Cricket bombs are improvised explosive devices which can kill or seriously injure people.

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 received 3,894 reports of incidents of laser strikes on aircraft. In the Eastern District of California, there were 150 reported incidents last year, with the majority in Bakersfield, Fresno, and Modesto. Lasers can incapacitate pilots, endangering their crew members, passengers and people on the ground.

This case being investigated by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Kern County Sheriff’s Office, and Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

Sahagun is scheduled for an initial appearance on the indictment today before U.S. Magistrate Judge Jennifer L. Thurston in Bakersfield. He faces a prison term of five years and a fine of up to $250,000, if convicted of aiming the beam of a laser pointer at an aircraft. If convicted of the bomb charge, Sahagun faces an additional 10 years in prison and a fine of up to $10,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

FRESNO, Calif. — Juan Valenzuela, 34, and Ernie Rodriguez, 39, both of Fresno, and Anthony Rodriguez, 32, of Modesto, appeared before U.S. District Judge Lawrence J. O’Neill today on federal firearms charges, United States Attorney Benjamin B. Wagner announced.

Valenzuela was sentenced to three years in prison for possessing a firearm after a conviction for a domestic violence misdemeanor. Judge O’Neill commented on the Valenzuela’s lengthy history of domestic violence offenses, and said that the he was lucky in this case that no one was harmed by the bullets discharged from his gun. 1:14-cr-131-LJO

Ernie Rodriguez, 39, pleaded guilty to being a felon in possession of a firearm. His sentencing is set for October 13, 2015. 1:15-cr-008-LJO

Anthony Rodriguez was sentenced to four years in prison for being a felon in possession of a firearm and ammunition. 1:15-cr-035-LJO

U.S. Attorney Wagner stated: “Any time a firearm is taken out of the hands of a criminal, our neighborhoods are safer. As seen in these cases, Project Safe Neighborhood brings together federal and local law enforcement to combat gun and gang crime. Increased federal prosecution seeks to incapacitate chronic violent offenders and communicates a credible deterrent threat to potential gun offenders.”

“ATF’s primary mission is to reduce violent crime and in doing so protect the citizens of our communities,” said Acting Special Agent in Charge, Eric D. Harden. “We will continue to aggressively pursue these repeat offenders with our law enforcement partners and remove dangerous weapons from their grasp and hold them accountable for their crimes.”

These cases resulted from investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Federal Bureau of Investigation, the Fresno Police Department, the Modesto Police Department, and the Mendota Police Department. The cases are part of Project Safe Neighborhoods, which is a joint initiative to combat gang and gun violence. Assistant U.S. Attorney Kimberly Sanchez is prosecuting Juan Valenzuela and Ernie Rodriguez. Assistant U.S. Attorney Vincenza Rabenn prosecuted Anthony Rodriguez.

Rodriguez faces up to 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.

FRESNO, Calif. — Ricky Davis, 36, of Modesto was sentenced today to 25 years in prison by United States District Judge Anthony W. Ishii, United States Attorney Benjamin B. Wagner announced.  On March 25, 2015, Davis was found guilty pursuant to a five-day jury trial on separate counts of production of child pornography, as well as the attempted sex trafficking of a minor.

According to evidence presented at trial, in September 2011 Davis invited a 13-year-old minor to his home for the ostensible purpose of giving her a tattoo. After her arrival, Davis instead took sexually explicit photographs of her and posted them online within an advertisement for prostitution. Davis also provided the minor’s contact information to someone responding to this advertisement. An analysis of digital evidence revealed the photographs to have been on Davis’s cellphone and computer, and metadata from the pictures established that they were taken from a cellphone matching the make and model of Davis’s phone.

U.S. Attorney Wagner stated: “Targeting children for sexual exploitation is disturbing and unacceptable. The U.S. Attorney’s office is committed to combating these crimes and guarding  the safety and well-being of every child.”

This case was the product of an investigation by the Federal Bureau of Investigation, the Sacramento Police Department, and the California Highway Patrol, all members of the FBI’s Sacramento-based Child Exploitation Task Force, as well as the South San Francisco Police Department and California Department of Corrections and Rehabilitation. Assistant United States Attorneys Brian W. Enos and Alyson A. Berg 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. — Xue Heu, 38, of Modesto, was sentenced today to five years and three months in prison, to be followed by three years of supervised release, for investment fraud schemes in Fresno and Texas, United States Attorney Benjamin B. Wagner announced.

United States District Judge Lawrence J. O’Neill also ordered Heu to pay $1,166,366 in restitution to victims of the two fraud schemes.

According to court documents, between August 2007 and October 2013, Heu solicited individuals to invest in real estate businesses that purchased and sold real estate. Heu claimed to be an officer of Liquid Assets & Land Investments Inc. and Capital Land Investments LLC. In furtherance of the scheme and to persuade the investors that the investment opportunities were legitimate, Heu gave investors fraudulent documents, such as forged and fictitious grant deeds, fraudulent HUD-1 settlement statements, and portfolio listings of properties he claimed he intended to purchase, including properties that had already been sold and were no longer available to purchase. In his plea agreement, Heu admitted to defrauding investors of approximately $412,896.

According to court documents, between October 1, 2013, and December 31, 2013, Heu and others executed a second scheme to defraud real estate investors. Heu, using the alias “Michael Chan,” purported to be a representative of the Troubled Asset Relief Program (TARP) and an authorized seller of property that had been foreclosed on by the United States government. Heu and a co-defendant lured investors into placing funds into escrow accounts established by another co-defendant and then converted the money to their own use. In his plea agreement, Heu admitted he was responsible for a loss to victims of $762,897. This case was originally charged in the Western District of Texas, San Antonio Division, and was transferred to the Eastern District of California for Heu’s guilty plea and sentencing.

These cases were the product of investigations by the Federal Bureau of Investigation in Modesto, California and San Antonio, Texas and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Henry Z. Carbajal III prosecuted the cases.

FRESNO, Calif. —Anthony Pollino, 37, of Modesto, pleaded guilty today to one count of trafficking in counterfeit goods, United States Attorney Benjamin B. Wagner announced.

According to court documents, Pollino, along with several co-defendants, conspired to obtain counterfeit copies of the erectile-dysfunction drugs Viagra®, Cialis®, and Levitra®, along with their packaging, and sell them to consumers throughout California and in the Las Vegas, Nevada area. The defendants assured buyers their products were genuine when they were actually cheaply made foreign copies of the drugs. The defendants operated as a business, calling their operation the “California Confidence Company.” Pollino admitted that the value of the counterfeit products attributable to him as over $350,000.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Michael G. Tierney and Henry Z. Carbajal III are prosecuting the case.

Pollino is in custody and is scheduled to be sentenced by Senior United States District Judge Anthony W. Ishii on October 5, 2015. He faces a maximum statutory penalty of 20 years in prison and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Kyn K. Naope, 39, of Sherman Oaks, was arrested today for participating in an unemployment fraud scheme with losses of over $2.5 million United States Attorney Benjamin B. Wagner announced.

A six-count indictment, returned by a federal grand jury earlier this month, alleges that between January 2008 and March 2011, Naope and others involved in the scheme registered fictitious employers with the California Employment Development Department (EDD) and then recruited other individuals to pose as laid-off employees of those companies. These fake employees would then file for and collect unemployment insurance benefits based on the wages reported to EDD by the fictitious employers.

This is the third indictment brought as part of this investigation. A separately pending 20-count indictment charged Kenneth Parks, Michael Taylor Sr., and three others with involvement in the fraud scheme. Parks pleaded guilty and was sentenced to five years in prison, while Taylor pleaded guilty and is awaiting sentencing. (2:12‑cr-375 TLN). Another indictment charged Donye Marcel Mitchell Sr. for his involvement in the fraud scheme, and he was sentenced to four years in prison (2:11-cr-085 GEB).

These cases are the product of an investigation by the United States Department of Labor, Office of Inspector General and California EDD – Criminal Investigations Division. Assistant United States Attorney Jared C. Dolan is prosecuting the case.

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

 

FRESNO, Calif. —Tracy McArthur Harris, aka Trey Harris, 42, a federal inmate, was sentenced today to one year in prison to be served consecutively to his current 11-year sentence for conspiring to smuggle half an ounce of synthetic cannabinoids into Taft Correctional Institution, United States Attorney Benjamin B. Wagner announced.

Harris’s sentence follows his guilty plea in May. According to court documents, from December 2012, through April 2013, while incarcerated at Taft Correctional Institution on a previous drug trafficking conviction, Trey Harris conspired to obtain smokable synthetic cannabinoids from his brother James Steven Harris, aka Steve Harris, 44, of Loma Linda, during visits. Some of the drugs, which were seized by prison authorities during the conspiracy, tested positive for XLR11, then a controlled substance analogue. In May 2013, DEA classified XLR11 as a Schedule I controlled substance following reports by the Centers for Disease Control that XLR11 not only produces hallucinogenic effects but causes kidney damage.

“Our office fully supports investigative efforts to address the continuing problem of inmate drug use and drug smuggling in Federal Bureau of Prisons (BOP) institutions,” United States Attorney Wagner said. “The harm of drugs in a prison setting cannot be ignored. Drugs not only interfere with prison officials’ ability to provide a safe and secure environment for inmates and staff but inhibit the rehabilitative potential of inmates with drug problems.”

Steve Harris is scheduled for a status conference on July 27 in federal court in Fresno. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the Federal Bureau of Investigation and Taft Correctional Institution Special Investigative Supervisor’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.

SACRAMENTO, Calif. — Jose Millan, 51, of Lodi, was sentenced today by United States District Judge Garland E. Burrell Jr. to nine years in prison for possessing almost 10 pounds of methamphetamine with the intent to distribute it, United States Attorney Benjamin B. Wagner announced.

According to court documents, in May of 2014, Millan told a confidential informant that he knew people who received regularly scheduled deliveries of methamphetamine from Mexico, and that multiple pounds of methamphetamine were being stored in Lodi. Later that month, officers saw Millan and a co-defendant walk into Millan’s garage and depart shortly afterward carrying an ice chest, which they loaded into the trunk of a car. They drove the car to the parking lot of a restaurant in Lodi, where the confidential informant had arranged to meet Millan.  Officers arrested Millan and the co-defendant without incident. In the ice chest in Millan’s car, officers found 4.4 kilograms of methamphetamine.

“Today’s prison sentence is a reminder of the serious consequences drug traffickers face for trying to bring illicit drugs into our communities,” said Ray Greenlee, assistant special agent in charge for HSI Sacramento. “ICE remains committed to dismantling the international drug trade while ensuring that those who are involved don’t benefit financially.”

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

Millan remains in federal custody. His co-defendant, Miguel Rodriguez, is scheduled to be sentenced on July 31, 2015, in Sacramento before Judge Burrell.

BAKERSFIELD, Calif. — Following the arrest earlier today of August Davison, 26, of Bakersfield, an indictment has been unsealed charging him with maintaining a drug-involved premises, conspiracy, and manufacturing and distributing marijuana in the form of hashish oil, United States Attorney Benjamin B. Wagner announced.

According to court documents, from approximately January 2014 to April 2015, Davison manufactured hashish oil, a concentrated form of marijuana, in a tetrahydrocannabinol (THC) extraction laboratory at his residence using a potentially combustible method. Separately, at a local Bakersfield business, Davison grew marijuana plants from which he manufactured some of the hashish oil that he made. Davison distributed the hashish oil in Kern County.

This case is the product of an investigation by the Drug Enforcement Administration, the Bakersfield Police Department, the Kern County Sheriff’s Office and personnel from the DEA’s Western Regional Lab. Assistant United States Attorney Angela Scott is prosecuting the case.

If convicted, Davison faces a maximum statutory penalty of 20 years in prison and a $500,000 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.

THC extraction laboratories are a public safety hazard and have resulted in numerous explosions and injuries. According to the California Drug Endangered Children Training and Advocacy Center (DEC-TAC), from December 2010 until April 6, 2015, 441 THC extraction laboratories were located in California; 291 in 2014 and 53 during the first three months of 2015. DEC-TAC reports children were present at 72 THC extractions laboratories found during this 4.5-year period, resulting in the injury of 12 and the death of three children. Further, during this same time frame, DEC-TAC reports 140 adults were injured and 41 adults died as a result of THC extraction laboratory explosions.

SACRAMENTO, Calif. — On Wednesday, a federal grand jury returned an indictment against Abdul Mannan, 32, of Sacramento, charging him with four counts of bank fraud and one count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced.

According to court documents, Mannan allegedly used stolen identity information of others to obtain credit cards, and used them to obtain cash, goods and services. On July 1, 2015, federal agents executed a search warrant at his residence and recovered evidence that Mannan possessed personal and financial information for over 25 different named victims and more than 25 different credit card accounts. Mannan's alleged conduct has caused a reported loss to financial institutions of over $70,000. Mannan obtained access to lines of credit exceeding $500,000.

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

If convicted, Mannan faces up to 30 years in prison for each bank fraud charge and two consecutive years in prison for aggravated identity theft. 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 two-count indictment today against Martha Patricia Pio, 37, of Tacoma, Washington, charging her with conspiracy to distribute and to possess with intent to distribute cocaine and possession with the intent to distribute cocaine, United States Attorney Benjamin B. Wagner announced.

According to court documents, on July 1, 2015, Pio was stopped by a California Highway Patrol officer while driving northbound on Highway 99. During a subsequent search of her vehicle, officers located a hidden compartment containing 17‑brick‑shaped packages of cocaine weighing a total of approximately 18.5 kilograms, or about 40.7 pounds.

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 Highway Patrol. Assistant United States Attorney Michael Frye is prosecuting the case.

If convicted, Pio faces a maximum statutory penalty of 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Marco Antonio Lara-Gomez, 27, of Suisun City, charging him with making a false statement in an application for a U.S. passport and use of a false Social Security number, United States Attorney Benjamin B. Wagner announced.

According to court documents, Lara-Gomez is a Mexican national who fraudulently applied for a U.S. passport in 2007, using an identity theft victim’s name and birth certificate in connection with the application. Lara-Gomez received a passport and used it to travel to and from Mexico. Additionally, Lara-Gomez used the same victim’s identity, including his social security number, to apply for, and receive unemployment insurance benefits between 2010 and 2014.

This case is the product of an investigation by the U.S. Department of State’s Diplomatic Security Service and California’s Employment Development Department, with Assistance from the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Nirav Desai is prosecuting the case.

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

SACRAMENTO, Calif. — Tamara Tikal, 45, of Rio Vista, was sentenced today by United States District Judge Troy L. Nunley to three years and nine months in prison for her conviction for conspiring to commit mail fraud in relation to a foreclosure rescue scam, United States Attorney Benjamin B. Wagner announced. Tamara Tikal was also ordered to pay $3,671,000 in restitution to victims of the offense.

Tamara Tikal’s husband Alan Tikal was convicted following a bench trial and sentenced to 24 years in prison. Tamara Tikal pleaded guilty to the conspiracy in August 2014, as did co-defendant Ray Kornfeld, who was sentenced to five years in prison.

According to her plea agreement, between January 2010 and August 2013, Alan Tikal was the principal behind a business known as KATN, which targeted distressed homeowners experiencing difficulties making their existing monthly mortgage payments. Many of the victims did not speak English. Alan Tikal promised to reduce their outstanding mortgage debt by 75 percent, falsely claiming he was a registered private banker with access to an enormous line of credit and the ability to pay off homeowners’ mortgage debts in full. Homeowners were told that in return for various fees and payments, their existing loan obligations would be extinguished, and the homeowners would then owe new loans to Tikal in an amount equaling 25 percent of their original obligation. In reliance upon these misrepresentations, many of these homeowners stopped making payments on their existing mortgage loans and lost their homes to foreclosure as a result.

Tamara Tikal filled a variety of roles in the business, including paying the salaries of various employees, serving as a notary for various documents utilized in furtherance of the scheme, and opening and maintaining post-office boxes and bank accounts that received homeowner payments. She also communicated with individual homeowners, assuring them of the legitimacy of the program.

In fact, the Tikals never made any payments to financial institutions on behalf of homeowners in satisfaction of their pre-existing mortgage debt obligations; the money for the purported “loan” payments were simply spent by the Tikals and their associates for personal use; and there was not a single instance in which a homeowner’s debt was paid, forgiven or otherwise extinguished as a result of the mortgage relief program. In all, more than 1,000 homeowners in California and other states were convinced to participate in the program. As a result of their participation, many homeowners became delinquent on their loans and ultimately had their homes foreclosed upon. Those homeowners paid more than $5,800,000 in fees and monthly payments into the program. Of that, more than $2,500,000 was paid into accounts controlled by the Tikals.

This case was a joint prosecution by the United States Attorney’s Office for the Eastern District of California and the California Attorney General’s Office. It is the product of extensive investigation by the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), Internal Revenue Service - Criminal Investigation, the California Department of Justice, and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Philip Ferrari and California Deputy Attorney General Maggy Krell prosecuted the case.

SACRAMENTO, Calif. — Today, after a three-week jury trial, a federal jury found Olga Palamarchuk, 45, of Rancho Cordova; Pyotr Bondaruk, 44, of Sacramento; Vera Zhiry, 35, of Sacramento; and Peter Kuzmenko, 37, of West Sacramento, guilty of conspiracy to commit mail fraud, related to a mortgage fraud conspiracy. Palamarchuk and Bondaruk were also found guilty of making false statements to a financial institution and money laundering. Zhiry was also found guilty of money laundering.

According to evidence presented at trial, Palamarchuk, a loan officer at Capital Mortgage Lending Inc., recruited Bondaruk to purchase two houses using 100 percent financing and to refinance and obtain a home equity line of credit on one of the houses. In order to qualify for the loans, Palamarchuk and Bondaruk submitted fraudulent loan applications to lenders, falsely stating Bondaruk’s employment, income, assets, and intent to occupy the homes as his primary residence.

In addition, the defendants fraudulently inflated the value of the properties and diverted the excess funds to themselves.  For example,  Peter Kuzmenko received $32,378 in seller’s proceeds for landscaping and pool work his company Pete’s Pool Service purportedly performed on a house that didn’t have a pool. Similarly, Zhiry received $100,000 to pay off a purported debt owed by the sellers that the sellers denied existed, and Zhiry  provided  $40,000 of that money back to Olga Palamarchuk.

In February, Peter Kuzmenko was found guilty in a separate mortgage fraud scheme in this district. (2:11-cr-210-JAM) He is currently in custody.

This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys Lee S. Bickley and Heiko P. Coppola are prosecuting the case.

The defendants’ sentencing is set for October 1, 2015, before United States District Judge Troy L. Nunley. The defendants face a maximum statutory penalty of 30 years in prison for conspiracy to commit mail fraud and making false statements to a financial institution, 10 years in prison for money laundering, and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Following arrests made earlier today, a federal indictment was unsealed charging three defendants with conspiracy to commit health care fraud and 15 counts of health care fraud, United States Attorney Benjamin B. Wagner announced.

Chiropractor Bahar Gharib-Danesh, 38, of Woodland Hills, was arrested in Los Angeles; Chiropractor Na Young Eoh, 41, of Bakersfield, was arrested in Bakersfield; and clinical psychologist John Terrence, 72, of Marina Del Rey, is expected to voluntarily appear before the U.S. District Court in Fresno within the next 30 days.

“Identifying and prosecuting fraud in the provision of health care services is a priority for this office,” said U.S. Attorney Wagner. “We will continue to work with our federal and state partners in pursuing dishonest health care providers who plunder public and private health care insurance plans for their own gain.”

According to the indictment returned on July 2, 2015, Gharib-Danesh was a chiropractor and the manager of Pain Relief Health Centers (PRHC). PRHC was headquartered in Los Angeles, and had clinics in Bakersfield, Visalia and Fresno, as well as in Los Angeles County. Eoh was also a chiropractor, and was the treating physician for PRHC’s Kern County workers’ compensation claims. Terrence was a clinical psychologist who saw patients from the Bakersfield clinic.

According to the indictment, PRHC recruited patients who were workers claiming to have an injury. In treating the patients, Gharib-Danesh instructed her staff to add as many injured body parts for treatment as possible to generate higher billings. The treatment plan generally included shock wave therapy, electro stimulation therapy, myo-facial release/massage, physical therapy, chiropractic manipulation, compound creams, and psychological evaluation. Nearly every patient was scheduled for the same treatments, and the maximum amount of treatments allowed by law was generally billed to the insurance company. Eoh operated out of the Bakersfield Clinic, the Visalia Clinic, and the Fresno Clinic and would sign the treatment plans and referral forms.

If the claim of injury was denied by the insurance company, a lien would be filed, and the claims would either be litigated before the California Workers’ Compensation Appeals Board or be settled by negotiations through the parties. Lien settlements for less than the full amount of the claim were acceptable because of the high volume of patients recruited and by the large amount of medical fees generated.

The indictment further alleges that Gharib-Danesh directed Eoh to refer all patients who came into the clinic to Terrence for a psychological evaluation, regardless of the injury the patient reported. Terrence submitted bills and reports for each patient that were virtually identical. He also allegedly fraudulently billed for patients at a rate higher than legally allowed. According to the indictment, Terrence provided each patient with approximately 20.8 hours of psychological evaluations in a single day. On one day, Terrence billed a total of 291.2 hours for treating 14 patients. In one period of two weeks, Terrence billed over a thousand hours treating patients and writing reports. Between 2005 and 2012, Terrence submitted claims for psychological services in workers’ compensation cases totaling in excess of $5.6 million.

This case is the product of an investigation by the Federal Bureau of Investigation, the California Department of Insurance, and the Kern County District Attorney’s Office. Assistant United States Attorneys Mark J. McKeon and Patrick R. Delahunty 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.

SACRAMENTO, Calif. — Danniel A. Hoose, 49, of Redding, pleaded guilty today to one count of falsely certifying more than 570 oxygen cylinders for reuse, including reuse in aircraft, United States Attorney Benjamin B. Wagner announced.

According to court documents, Hoose owned and operated Shasta Fire Equipment Inc. (Shasta) in Redding and held a Department of Transportation (DOT)-issued permit to test oxygen and other gas-containing cylinders and to certify those cylinders for reuse for various purposes, including in aircraft. Acting on an anonymous complaint, investigators discovered that between March 2013 and June 2013, Hoose was personally responsible for performing all cylinder tests at Shasta, even though Hoose’s DOT certification to perform such tests had expired nearly a year earlier. Investigators also found that Shasta’s re-qualification equipment was in disrepair, and that Shasta’s test procedures, test accuracy, and test records failed to satisfy regulatory requirements.

According to documents filed in federal court today, Hoose admitted that he falsely certified more than 570 cylinders for reuse after conducting incomplete or, in some cases, no tests on those cylinders. Hoose also admitted that approximately 58 oxygen cylinders that he improperly tested or did not test were returned to service and installed in aircraft.

All of the cylinders were recovered and re-tested during the investigation.

This case is the product of an investigation by the U.S. Department of Transportation, Office of Inspector General. Assistant United States Attorney André M. Espinosa is prosecuting the case.

Hoose is scheduled to appear before U.S. District Judge Troy L. Nunley on September 10, 2015, for sentencing. The maximum statutory penalty for a making and using a materially false writing concerning an aircraft part, which relates to the aviation quality of a part installed in an aircraft, is 15 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Today, after a five-day trial, a federal jury found Isreal “Puck” Washington, 41, of Sacramento, guilty of all 10 counts in the indictment for trafficking heroin, cocaine, cocaine base, and methamphetamine, United States Attorney Benjamin B. Wagner announced.

“Under the Smart on Crime initiative, the U.S. Department of Justice has refocused its narcotics prosecution efforts against the most significant and dangerous offenders.” U.S. Attorney Wagner stated. “Washington is one of those persons. This marks the end of his drug empire.”

This case is the product of an investigation by the Drug Enforcement Administration, the Sacramento County Sheriff’s Office, the Sacramento Police Department, the Vallejo Police Department, and the Sacramento County District Attorney’s Office.

According to court documents and evidence presented at trial, in 2010, Washington distributed large amounts of cocaine base, cocaine, and heroin in the Sacramento area. Washington used various businesses as a front to conceal and disguise his extensive drug trafficking and operated a large “crew” of gang members as his drug distribution organization. During an investigation in 2010 and 2011, one of Washington’s businesses, Wet Ways Auto Body and Paint Shop, was identified as a place where Washington and his associates conducted drug deals.

In 2012, an undercover operative bought heroin and methamphetamine from Washington’s organization. The drug traffickers operating under Washington included co-defendants Deyonte Spears, 27, of Oakland, and Sacramento residents Tyrone Weathersby, 47; Anthony Sanchez, 31; and Myron Meadows, 44. On May 21, 2013, the DEA served search warrants at two Sacramento-area stash pads controlled by Washington. Agents seized a stolen firearm and more than three pounds of heroin at stash pads maintained by the group.

Charges are pending in a separate indictment against Washington that stems from a 2011 homicide investigation. When deputies executed a search warrant at Washington’s residence, they discovered three semi-automatic pistols, including one with a high-capacity magazine. The indictment alleges that Washington is prohibited from possessing firearms because of four prior felony convictions for drug trafficking and assault with a deadly weapon. A status conference for that case will be set in the near future. (Docket # 2:13-cr-207 MCE)

Washington is scheduled to be sentenced on October 1, 2015, by United States District Judge Morrison C. England Jr. Washington’s co-defendants have all previously pleaded guilty. Co‑defendant Spears is scheduled to be sentenced on July 16, 2015; co‑defendant Weathersby was sentenced to 18 months in prison on October 24, 2014;  co‑defendant Sanchez is scheduled to be sentenced on September 10, 2015, and co‑defendant Meadows is scheduled to be sentenced on August 13, 2015. Because of his criminal history, Washington faces a mandatory minimum sentence of 20 years in prison on each of counts two and eight. On the remaining counts, Washington faces maximum statutory penalties of up to life in prison and statutory mandatory minimum sentences of 10 years. the other defendants also face sentences of at least 10 years in prison on the counts to which they have pleaded guilty. 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 part of an Organized Crime Drug Enforcement Task Force (OCDETF) program that was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

When prosecuted in federal court, drug traffickers typically receive much harsher sentences. In addition to the longer sentences imposed, unlike state court prisoners who are released early on parole, there is no early release on parole in the federal system.

SACRAMENTO, Calif. — A federal grand jury returned a 22-count indictment Thursday against 13 defendants from Sacramento, Delano (Kern Co.) and Phoenix, Arizona, charging them with illegally trafficking large amounts of methamphetamine, heroin, cocaine, and marijuana, United States Attorney Benjamin B. Wagner announced.

The defendants named in the indictment are:

Jose Manuel Valdez Torres, 39, fugitive, of Delano/Phoenix; Roberto Gomez Jr., 25, of Antelope; Leonel Valdez Ayon, aka Leonel Valdez Gonzalez, 27, of Delano; Leobardo Martinez-Carranza, 22, of Delano; Edgar Eduardo Herrera, 21, fugitive, of Delano; Enrique Alonso Valdez Yanez, 38, fugitive, of Mexico; Jason Duane Rogers, 43, of Citrus Heights; Shannon Anthony Armstrong, 40, of El Dorado Hills;  Bradley Gene Ward, 36, of Carmichael; David Andrews Uhrig, 44, of Orangevale; William James Welch, 53, of Citrus Heights; Michael William McGibbon, 39, of Citrus Heights, and
Jesus Hunberto Zurita Sicairos, 26, of Phoenix, Arizona.

According to court documents, an investigation indicated that Valdez Torres was arranging to smuggle multi-kilogram quantities of methamphetamine, heroin, and cocaine from Mexico into the United States. Once here, the drugs were stored at stash houses in Delano, Sacramento, and Phoenix. The drugs were then sold in ounce and pound quantities to various distributors. On June 24-26, 2015, in a coordinated law enforcement operation, search warrants for 11 residences were executed (three in Delano, eight in the Sacramento area, and one in Phoenix) and 10 individuals were arrested. Over 50 pounds of methamphetamine, a kilogram of heroin, smaller amounts of cocaine and marijuana, and over $275,000 in cash were seized. Numerous firearms were also seized. Gomez, Ward and Welch are each charged with illegal possession of firearms.

This case is the product of an investigation by the U.S. Drug Enforcement Administration Kern County Sheriff’s Office, the Central Valley HIDTA, the Sacramento Sheriff’s Office, the Folsom Police Department, the Citrus Heights Police Department the Arizona HIDTA Initiative, the Maricopa County Drug Suppression Task Force, the Maricopa County Sheriff's Office, the police departments of Tempe, Phoenix, Surprise, and Buckeye, the US Border Patrol, the Phoenix DO Enforcement Group, and the Maricopa County Sheriff's Office Tactical Operations Unit. Assistant United States Attorney Christopher Highsmith is prosecuting the case.

All defendants are named in the first count of the indictment which charges conspiracy to distribute, and to possess with the intent to distribute, methamphetamine, heroin, and cocaine. If convicted on this count, they each face a statutory maximum penalty of life in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

SACRAMENTO, Calif. — Edwin Ludwig IV, 34, currently an inmate in an Oklahoma state prison, was sentenced today to seven years in prison for conspiring to defraud the United States and for filing false claims for federal tax refunds, United States Attorney Benjamin B. Wagner announced. Ludwig was ordered to pay over $219,000 in restitution.

According to court documents, beginning in March 2011, Ludwig and three fellow inmates in the California Correctional Center in Susanville obtained personal identification information of other inmates at the correctional center. Ludwig then provided the information to co-defendants on the outside who prepared and filed false income tax returns with the Internal Revenue Service, claiming refunds to which the inmates were not entitled. False tax returns also were filed in some of the defendants’ own names. The defendants caused the false refund checks to be deposited to various bank accounts they controlled. According to the indictment, the investigation into the conspiracy began on January 11, 2012, when a correctional officer found some records behind Ludwig’s personal locker.

According to court documents, the refunds were used for personal expenditures, and included the purchase of prepaid debit cards, and adding money to inmates’ commissary accounts. At sentencing, Ludwig stated that some of the proceeds had been used to purchase drugs. In all, the conspiracy resulted in at least 247 false claims for income tax returns in tax years 2008 through 2011. Although the IRS stopped some of the refunds, approximately 138 fraudulent refunds totaling approximately $219,984 were issued.

Charges against six co-defendants are pending. A status conference for them is scheduled for September 2, 2015. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

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