Eastern District of California

SACRAMENTO, Calif. — Earlier today, special agents with the Bureau of Indian Affairs (BIA) and the Drug Enforcement Administration (DEA), assisted by other federal and state agencies and the Modoc County Sheriff’s Office, conducted a search of two large-scale marijuana cultivation facilities located on federally recognized tribal lands at the Alturas Indian Rancheria and the XL Ranch in Modoc County, United States Attorney Benjamin B. Wagner announced. At both sites, law enforcement seized a total of at least 12,000 marijuana plants and over 100 pounds of processed marijuana. Other than contraband marijuana and items of evidentiary value, no tribal property was seized, and no federal charges are pending.

The search warrants are part of an ongoing investigation relating to the financing and management of the commercial marijuana-cultivation projects. The search warrant affidavits were unsealed today. While it is generally the policy of the U.S. Attorney’s Office to decline commenting upon ongoing investigations, exceptions are sometimes made when a matter has received substantial publicity and there is a need to inform the community regarding law enforcement actions taken in furtherance of particular public interests. The marijuana grows in question have received substantial attention in Modoc County, as has the U.S. Department of Justice’s guidance relating to marijuana cultivation on tribal lands.

The cultivation facility at the Alturas Indian Rancheria was located within the tribe’s former Event Center, within approximately 100 yards of the tribe’s publicly operated gaming facility, the Desert Rose Casino. The facility on the XL Ranch was immediately adjacent to Highway 395 and the banks of the Pit River, and it consisted of 40 newly constructed greenhouse structures, each of which was capable of accommodating approximately 1,000 marijuana plants, and an additional gable-roofed structure that boosted the square footage of roof-covered structures by another 50 percent. Both of the grow operations, which appear to have been operating in conjunction with each other, were well in excess of the locally enacted marijuana cultivation limits applicable to county land. The volume of marijuana that the XL facility alone was capable of producing, estimated at approximately 40,000-60,000 plants, far exceeds any prior known commercial marijuana grow operation anywhere within the 34-county Eastern District. According to tribal representatives, all of the marijuana cultivated at both facilities was intended to be distributed off tribal lands at various unidentified locations. As indicated in the search warrant affidavits, the investigation to date indicates both operations may have been financed by a third-party foreign national.

The United States Attorney’s Office follows Department of Justice guidelines in exercising its prosecutorial discretion and evaluating the need for investigative and enforcement action with respect to potential violations of federal law. The investigation of the cultivation facilities searched today indicates that both are commercial marijuana cultivation projects operated with the intent to transport large quantities of marijuana off tribal lands for distribution at various locations yet to be identified by the tribes. These facts raise multiple federal enforcement concerns, including the diversion of marijuana to places where it is not authorized and potential threats to public safety, both of which are listed priorities in Department of Justice guidelines. These concerns are only heightened when the activity occurring off tribal lands is not subject to effective state or local regulation.

Consistent with Department of Justice guidelines and the federal government’s trust relationship with recognized tribes, the U.S. Attorney’s Office consulted with members and representatives of both tribes on multiple occasions before today’s action. The U.S. Attorney’s Office reminded the tribes that the cultivation of marijuana is illegal under federal law and that anyone engaging in such activity did so at the risk of enforcement action. The U.S. Attorney’s Office also expressed concern that large-scale commercial marijuana grows on tribal lands have the potential to introduce quantities of marijuana in a manner that violates federal law, is not consistent with California’s Compassionate Use Act, and undermines locally enacted marijuana regulations. The U.S. Attorney’s Office stated that this potential was a concern for local law enforcement throughout the Eastern District and potentially warranted federal action. search warrant (1.63 MB)

SACRAMENTO, Calif. — Humberto Lozano III, 27, of Sacramento, was sentenced today by United States District Judge Kimberly J. Mueller to five years in prison for receiving child pornography, United States Attorney Benjamin B. Wagner announced. Lozano was ordered to begin serving his sentence on September 2, 2015. On release, he will be required to register as a sex offender.

According to court documents, in March 2013, America Online shut down Lozano’s email account because it had been used to distribute child pornography. AOL reported the account to law enforcement. When law enforcement obtained a search warrant for the email account, a total of 1360 images and 21 videos of child pornography were found. After his account was shut down, Lozano opened an new email account, this time at Yahoo!. He used that account to solicit images of child pornography. Between March 11, 2013, and July 1, 2013, approximately 1,300 images and 30 videos of child pornography were received. Investigators recovered a hard drive in Lozano’s possession and applied computer forensic tools to recover 4,000 deleted images of child pornography and child erotica.

According to the plea agreement, a child was rescued as a result of this investigation. One of the 4,000 deleted images still contained location data. It was of a child subject to sexual abuse in the Netherlands. That information was passed to Dutch law enforcement, who used it to find the child and rescue her from ongoing abuse.

In sentencing, Judge Mueller stated: “They are real victims even if there is no physical contact. There is ongoing trauma by virtue of knowing that the images are out there.”

This case was the product of FBI Child Exploitation Task Force/Innocent Images National Initiative in partnership with the Sacramento Sheriff's Office Internet Crimes Against Children Task Force. Assistant United States Attorney Matthew D. Segal prosecuted the case.

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

SACRAMENTO, Calif. — Eric M. Shaffer, 42, of Modesto, pleaded guilty Tuesday to three counts of theft of government property for taking Department of Defense property worth more than $316,000, United States Attorney Benjamin B. Wagner announced.

Shaffer was an employee at the Department of Defense (DoD) Logistics Agency, San Joaquin Distribution Center, in Tracy, (Tracy DLA Depot). Shaffer regularly came into contact with new goods delivered by venders to the DoD and the United States General Services Administration that were stored at the Tracy DLA Depot before being shipped to military bases in the Pacific Ocean region and elsewhere.

According to court documents, between February 27, 2011, and January 3, 2015, Shaffer sold more than 620 items of stolen government property through approximately 325 auctions on a popular online auction website. He also completed more than 40 private sales of stolen government property to customers who paid Shaffer via an online payment system. Shaffer’s scheme generated approximately $238,000 in illicit revenue. The approximate replacement value of the property exceeds $316,000. Among other items, Shaffer admitted to stealing a GE Video Borescope kit, valued at $10,674; three Cisco TelePresence 8-inch LCD Touch Panels, total value of $4,700; and four Cisco Ethernet switches and a Panasonic Memory Card Drive with a replacement value of $5,000.

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

Shaffer is scheduled to appear before U.S. District Judge John A. Mendez on October 6, 2015, for sentencing. The maximum statutory penalty for a violation of theft of government property is 10 years in prison. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — After a two-day trial, Barry Lee Bowser Jr., 52, of Bakersfield, was found guilty today of one count of aiming the beam of a laser pointer at an aircraft, United States Attorney Benjamin B. Wagner announced.

According to court documents, on September 12, 2014, Bowser aimed the beam of a green laser at Air-1, a Kern County Sheriff’s helicopter while it was providing support to ground units responding to a man armed with a gun. The helicopter was struck two times by a powerful green laser from a distance of about 1/8 mile. The beam of the laser appeared to track the helicopter, which was flying at about 400 to 500 feet above the ground. The helicopter’s mission was diverted near the approach to Meadows Field Airport because of the laser strike. The pilot experienced flash blindness and eye discomfort and pain that lasted several hours.

According to evidence presented at trial, the officers pinpointed the source of the laser to a commercial property and motorhome surrounded by a chain link fence on Sillect Avenue in Bakersfield. Bowser, who was residing in the motorhome, admitted to the officers that he had just placed new batteries in the laser and was testing its capabilities.

This case is the product of an investigation by the FBI, Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant U.S. Attorney Karen A. Escobar and Special Assistant U.S. Attorney Bayleigh Pettigrew are prosecuting the case.

Bowser is scheduled to be sentence by United States District Judge Lawrence J. O’Neil on September 28, 2015. Bowser faces a maximum penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Reports of laser attacks have increased dramatically in recent years as powerful laser devices have become more affordable and widely available to the public. In 2014, the Federal Aviation Administration (FAA) received 3,894 reports of incidents involving laser strikes on aircraft. In the Eastern District of California, which encompasses 34 counties in the eastern portion of California, there were 150 reported laser incidents, with Bakersfield and Fresno leading in the number of reported incidents. Lasers can completely incapacitate pilots who are trying to fly safely to their destination, endangering their crew members, passengers and people on the ground.

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FRESNO, Calif. — Jose Luis Montoya-Salazar, aka Rafael Salazar-Sanchez (Montoya), 42, of Mexico City, pleaded guilty today to conspiring with Jimmy Gil, 35, of Shafter, and Luis Ricardo Eslava-Corral (Eslava) 42, of Sinaloa, Mexico, to import, distribute, and possess with intent to distribute 38 kilograms, or about 84 pounds, of cocaine, United States Attorney Benjamin B. Wagner announced. Montoya also agreed to the forfeiture of over $3.1 million in cash that drug agents seized during the investigation of the case.

In pleading guilty, Montoya admitted that he had conspired with Eslava and Gil to smuggle the cocaine into the United States from Mexico at the Otay Mesa Port of Entry. The cocaine was off-loaded in Bakersfield, where Gil and Montoya took possession of the drug. Follow-up investigation resulted in the seizure of $3,104,661 in cash, representing drug proceeds, hidden in an asphalt roller at another location in Bakersfield. The seized cocaine has a street value of over $3 million.

Montoya is scheduled to appear for sentencing before U.S. District Judge Lawrence J. O’Neill in Fresno on September 21, 2015. He faces a mandatory minimum statutory penalty of 10 years in prison, a maximum statutory penalty of life in prison and a $10 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. Eslava and Gil previously pleaded guilty and are scheduled for sentencing on July 20 and July 27, respectively. Eslava and Montoya are subject to removal to Mexico after serving any prison sentence imposed.

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

SACRAMENTO, Calif. — United States District Judge William B. Shubb sentenced Ricky Lamont Flemings, 31, of Antelope, to two years in prison for two counts of mail fraud, United States Attorney Benjamin B. Wagner announced.

According to court documents, Flemings engaged in a long-running scheme to deceive Experian and the other credit reporting agencies by exploiting provisions in the Fair Credit Reporting Act (FCRA), a statute intended to provide consumer protections to individuals. From 2005 until November 12, 2009, Flemings engaged Experian on multiple occasions and falsely reported that he was the victim of identity theft. During that period, Flemings demanded that Experian remove derogatory and other entries from his credit report. However, as he well knew, many of those entries were proper and were the result of his having sought credit or purchased items on credit.

In total, as a result of Flemings’s false statements, Experian blocked 162 inquiries and 40 trade lines from his credit report. Once those trade lines and inquiries were blocked, Flemings then sought further extensions of credit, relying on the fact that creditors would be unable to access the fraudulently blocked entries. As a result, Flemings appeared to be a better credit risk than he actually was.

For instance, between July 9, 2009, and September 5, 2009, Flemings received financing from Schools Financial Credit Union (SFCU), a federally insured credit union, to refinance a 2005 Lincoln Navigator and to purchase a 2006 Monterey boat. The loans were approved after SFCU examined a credit report that did not include fraudulently blocked entries. After receiving credit for the Lincoln and boat, Flemings contacted Experian and reported that the entries on his credit report related to these two items were fraudulent and should be removed.

This case was the product of an investigation by the United States Secret Service and the Placer County Sheriff’s Office. Assistant United States Attorney André M. Espinosa prosecuted the case.

FRESNO, Calif. — A federal grand jury returned a 15-count indictment on Thursday against seven individuals, charging them with conspiracy to commit mail fraud and bank fraud, mail fraud and aiding and abetting, and making false statements to a bank in a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.

Jyoteshna Karan, 43, and Praveen Singh, 36, were arrested this morning at their home in Modesto. Mahendra Prasad, 53, was arrested this morning at his home in Fremont. The remaining defendants each received a summons to appear for arraignment: Phul Singh, 79; and Sunita Singh, 60, both of Modesto, Nani Isaac, 69, of Ceres, and Martin Bahrami, 42, of Turlock.

According to court documents, the defendants conspired to defraud mortgage lending companies and financial institutions by making false statements on loan applications and short-sale applications in order to obtain properties under their names and the names of others. The false statements included statements relating to the defendants’ employment, their familial relationship, income, and their intent to occupy the home as their primary residence.

According to the indictment, the conspiracy encompassed at least 25 properties from Sacramento to Modesto. As a result of the scheme, lenders lost in excess of $3 million.

“The Federal Deposit Insurance Corporation Office of Inspector General is pleased to join the United States Attorney for the Eastern District of California and our law enforcement colleagues in announcing these indictments” said Wade Walters, Special Agent in Charge for the FDIC’s Office of Inspector General. “We are committed to our partnerships with others in federal, state, and local law enforcement organizations as we address mortgage fraud cases throughout the country. The American people need to be assured that their government is working to ensure integrity in the financial services and housing industries and that those involved in criminal misconduct that undermines that integrity will be held accountable.”

“The partnership between the Stanislaus County District Attorney’s Office, federal agencies and the U.S. Attorney’s Office allows us to investigate the most complex real estate fraud cases at the local level and yet prosecute at the federal level to ensure full accountability. This is a true benefit to the community,” said Stanislaus County District Attorney Birgit Fladager.

“The short sale process is intended to assist legitimately distressed homeowners,” said Leslie DeMarco, Special Agent in Charge, Federal Housing Finance Agency Office of Inspector General. “Our investigation disclosed that Karan and others allegedly manipulated the process for their personal gain. FHFA-OIG is committed to ensuring that real estate professionals maintain the highest ethical standards, which in turn will protect taxpayers.”

“Early this morning, SIGTARP agents and our law enforcement partners arrested or served summons on seven individuals who stand charged with operating a fraud scheme that cost financial institutions, including multiple TARP banks, millions of dollars in losses,” said Christy Romero, Special Inspector General for TARP. “The seven allegedly conspired to falsify information on mortgage loan and short-sale applications submitted to multiple financial institutions in order to obtain properties across Eastern California. SIGTARP and our law enforcement partners will aggressively investigate allegations of fraud perpetrated at the expense of taxpayers’ TARP bank investments and bring accountability to those who engage in these schemes.”

This case is the product of an investigation by the Stanislaus County District Attorney’s Office, the Federal Bureau of Investigation, the Federal Housing Finance Agency Office of Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General, and the Office of the Special Inspector General for the Troubled Asset Relief Program. Assistant United States Attorneys Mark E. Cullers and Patrick Delahunty are prosecuting the case.

Jyoteshna Karan and Praveen Singh are scheduled to appear for arraignment in U.S. District Court in Fresno, on Friday, June 26, 2015, at 1:30 p.m. before U.S. Magistrate Judge Gary Austin. Phul Singh, Sunita Singh, Nani Isaac and Martin Bahrami are scheduled to appear for arraignment in U.S. District Court in Fresno, on Wednesday, July 1, 2015, at 1:30 p.m. before U.S. Magistrate Judge Gary Austin. Mahendra Prasad is scheduled to appear in U.S. District Court in San Jose on June 26, 2015, for arraignment.

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

FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Raymond Slaton, 43, of Merced; Sidney Allen, 48, of Merced; Donnell Mays, 39, of Turlock; and Omar Lopez, 22, of Turlock, charging them with federal drug trafficking offenses United States Attorney Benjamin B. Wagner announced.

According to court documents, on May 20, 2015, Mays and Lopez went to Allen’s residence where they delivered a half kilogram of cocaine to Allen and Slaton. Mays and Lopez then left the residence in a car in possession of another half kilogram of cocaine. As law enforcement officers attempted to stop Lopez’s car for a vehicle code violation, Lopez failed to yield. While Mays and Lopez were pursued by patrol units from the Merced Police Department, a bag containing the half kilogram of cocaine was thrown from their car. After a high‑speed chase, Mays and Lopez were arrested.

This case is the product of an investigation by the Drug Enforcement Administration, the California Department of Justice, the Merced Police Department, the California Highway Patrol, the Merced Gang Task Force, and the Merced Narcotic Task Force. Assistant United States Attorneys Kimberly A. Sanchez and Daniel Griffin are prosecuting the case.

If convicted, Slaton, Mays and Allen face a maximum statutory penalty of life in prison, a mandatory minimum of 10 years in prison, and a $10 million fine. Lopez faces a maximum statutory penalty of 20 years in prison and a $1 million fine.

Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — Mario Farias Pineda, 23, was sentenced today by United States District Judge Lawrence J. O’Neill to 10 years in prison for possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, Pineda was driving northbound on California State Highway 99 when he was pulled over by Fresno County Sheriff’s deputies for talking on his cellphone. The deputies obtained permission to search his vehicle and found approximately 25 pounds of methamphetamine in a hidden compartment behind the rear passenger seat.

This case was the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration and the Fresno County Sheriff’s Office. Assistant United States Attorney Michael Frye prosecuted the case.

FRESNO, Calif. — George Esle Pires, 56, of Ceres, was sentenced today by United States District Judge Anthony W. Ishii to seven years and three months in prison for receiving child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, between November 2006 and November 2012, Pires received images of minors engaged in sexually explicit conduct.

This case was the product of an investigation by the Federal Bureau of Investigation and the Ceres Police Department. Assistant United States Attorneys Grant B. Rabenn and Jeffrey Spivak 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. — Joseph Nolan, 59, a Malibu businessman and Ventura County resident, was sentenced today to 18 months in prison, to be followed by three years of supervised release, for conspiring to manufacture, distribute, and possess with intent to distribute marijuana cultivated at a warehouse that he owned in Bakersfield, according to U.S. Attorney Benjamin B. Wagner.

According to the plea agreement and other court documents, Nolan set up a sophisticated indoor marijuana cultivation operation in a light industrial area in Bakersfield using K&N Manufacturing, his stone cutting business, as a front. Nolan used the accounts of another business, Cross Creek Building Center in Malibu, to pay the growers and cover the costs of electricity, supplies, and equipment. The Bakersfield marijuana operation supplied marijuana to the Blue Banana, a marijuana storefront and cultivation operation in Northridge that was shut down by the City of Los Angeles for failure to comply with local law. The Bakersfield marijuana operation was disrupted when law enforcement officers obtained and executed a search warrant there. During the search, officers seized 1,161 marijuana plants and 55 pounds of processed marijuana valued at over $4.8 million, along with thousands of dollars of marijuana cultivation equipment. In sentencing Nolan, Senior U.S. District Judge Anthony W. Ishii ordered the forfeiture of over 300 pieces of equipment used for the indoor cultivation of marijuana.

Nolan was the last of six defendants to be sentenced in connection with the marijuana operation. Mark Jeff Zeldes, 53, of Broomfield, Colorado, was sentenced last month to three years and eight months in prison for his involvement in the drug conspiracy. Joseph Taylor, 55, of Thousand Oaks, California, was sentenced to three years and one month in prison. Mark McGrath, 53, of Bakersfield, was sentenced to two years and two months in prison. Dustin York, 37, of Newbury, California, was sentenced to one year and 10 months in prison. Jeremy Dunn, 22, of Thousand Oaks, was sentenced to one year and three months in prison.

The case was the product of an investigation conducted by the Drug Enforcement Administration, the Bakersfield Police Department, the Kern County Sheriff’s Office, and the Southern Tri-County High Intensity Drug Trafficking Area (HIDTA) Task Force. Assistant U.S. Attorney Karen Escobar prosecuted the case.

SACRAMENTO, Calif. Yesterday, United States Attorney Benjamin B. Wagner sent the following remarks to various community members:

This afternoon I participated in a national conference call with other U.S. Attorneys about yesterday’s horrific shooting at the Emanuel AME Church in Charleston. The call was led by Vanita Gupta, the Acting Assistant Attorney General for the Civil Rights Division, and Bill Nettles, the U.S. Attorney in South Carolina.

As you know, a suspect is in custody. The U.S. Department of Justice has opened a federal hate crime investigation into the shooting, in addition to the murder investigation being pursued by local authorities. The FBI and ATF are working closely with local law enforcement agencies in both investigations.

There should be no doubt that this shooting was an act of domestic terrorism. Protecting Americans from the threat of terrorism of all types is the top priority of the U.S. Department of Justice. We and our federal law enforcement partners are committed to doing all we can to prevent, respond to, and prosecute such crimes.

The Attorney General [Loretta Lynch] has stated, and I agree, that there is no place for acts like these in our country or in civilized society.

FRESNO, Calif. — A federal grand jury returned a superseding indictment today alleging that Shannon Lester Sorrells, 36, of Dinuba, committed bank fraud and aggravated identity theft while awaiting trial for the original indictment, United States Attorney Benjamin B. Wagner announced.

According to the indictment, in May and June 2014, Sorrells stole three neighborhood delivery collection box units containing United States mail in Visalia. On July 3, 2014, a federal grand jury charged him with three counts of theft of government property and three counts of theft of U.S. Mail. Sorrells was released on his own recognizance, and trial was scheduled for August 4, 2015.

The superseding indictment returned today alleges that between December 2014 and February 2015, Sorrells obtained United States mail containing personal identification and financial information, including checks, of victims without their knowledge. He opened bank accounts in victims’ names and altered the checks and deposited them into the accounts. At times when committing the fraud, Sorrells presented himself as one of the victims whose identities he stole. Sorrells has been in custody since March 5, 2015.

This case is the product of an investigation by the United States Postal Inspection Service and the Visalia Police Department. Assistant United States Attorneys Megan A. S. Richards and Jeffrey Spivak are prosecuting the case.

If convicted, Sorrells faces a maximum statutory penalty of 30 years in prison and a $1 million fine on the bank fraud charges, five years in prison and a $250,000 fine for theft of mail, and a mandatory two-year consecutive sentence for the aggravated identity theft charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Sacramento residents Benjamin Macias, 37, and Sergio Ambriz, 26, charging them with conspiracy to distribute cocaine, distributing cocaine, and distributing methamphetamine, United States Attorney Benjamin B. Wagner announced. Macias is also charged with possessing a firearm in furtherance of a drug trafficking crime and being a felon in possession of firearm.

According to court documents, in 2014 and 2015, Macias supplied Ambriz with cocaine and Ambriz sold the cocaine to an undercover agent in Sacramento and El Dorado Counties. Ambriz also sold the undercover agent methamphetamine. When Macias was arrested, a Ruger 9mm pistol was found in his vehicle.

This case is the product of an investigation by the Drug Enforcement Administration. Assistant United States Attorney Michael McCoy is prosecuting the case.

If convicted, Macias faces a maximum statutory sentence of 40 years in prison and a $5 million fine. Ambriz faces a maximum statutory sentence of life in prison and an $8 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.

FRESNO, Calif. — Robert Farrace, 51, of Modesto, was indicted today on three counts of wire fraud in connection with a fraudulent short-sale scheme, United States Attorney Benjamin B. Wagner announced.

According to the indictment, Farrace was an attorney specializing in real estate transactions. He owned two investment properties in Modesto with substantial mortgage loans. In early 2010, he received foreclosure notices for the two properties. Farrace then created an entity called “Dignitas LLC” that he controlled but used a friend’s name as the company’s registered agent to conceal his control. Through Dignitas, Farrace submitted short sale offers to the bank that serviced the loans on both properties. During the process, Farrace misrepresented his relationship with Dignitas, and because the servicing bank did not know of the true relationship, it went forward and completed one of the short sales. The other sale was stopped by law enforcement and the bank.

This case is the product of an investigation by the Federal Housing Finance Agency–Office of Inspector General, the Federal Bureau of Investigation, and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Michael G. Tierney is prosecuting the case.

If convicted, Farrace 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 sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Antonio Garcia-Villa (Garcia), 46, and Uriel Silva-Garcia (Silva), both Mexican nationals, charging them 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 the Sequoia National Forest, United States Attorney Benjamin B. Wagner announced. The men were also charged with damaging public land and natural resources as a result of cultivating marijuana near Little Poso Creek, which drains into the Kern National Wildlife Refuge.

According to court documents, Garcia and Silva were found at the cultivation site in May 2015. Agents removed 8,596 marijuana plants from the site, along with pesticides, fertilizer, trash, water lines, and equipment. 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.

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

Garcia and Silva are in custody and are scheduled for arraignment on the indictment on June 24, 2015, in federal court in Fresno. If convicted of the drug offenses, the men face a statutory penalty of 10 years to life in prison and a $10 million fine. If convicted of the environmental crime, the men face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Pablo Barreto-Cruz, 40, of Michoacán, Mexico, charging him with marijuana cultivation and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.

According to court documents, law enforcement conducted a month-long investigation of a suspected drop point for a marijuana grow in the Mendocino National Forest in Glenn County. On May 12, agents encountered Barreto-Cruz on a remote Forest Service road near the suspected drop point. Close by, investigators discovered nearly 3,000 marijuana plants and a camp area.

A Forest Service fisheries biologist estimated that the resource damage, rehabilitation, and repair of the site would cost far more than $1,000. The report concluded that the marijuana grow represented a threat to water quality and aquatic resources due to their use of fertilizer and pesticides that will likely reach water in the wet winter months. Further, the report noted that the chemicals at the site include labeled fertilizers, labeled rodenticides and unlabeled pink powder believed to be a toxic pesticide (carbofuran).

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

If convicted, Barreto-Cruz faces a minimum statutory penalty of five years in prison, 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 an 11-count indictment today against Epati Malauulu, 40, of Suisun City; John Ortiz, 43, of Vallejo; Algernon Tamasoa, 26, of Sacramento; and Francisco Poloai, 43, of Dixon, charging them with conspiracy to distribute methamphetamine, attempted distribution of methamphetamine, distribution of marijuana, and use of a communications facility to facilitate a drug trafficking crime, United States Attorney Benjamin B. Wagner announced.

According to court documents, beginning in August 2014 and continuing to June 4, 2015, the defendants were involved in shipping packages of methamphetamine from Vallejo and elsewhere to Honolulu, Hawaii, using the U.S. Postal Service and FedEx. On at least four occasions, investigators in Hawaii seized packages containing approximately 12 pounds of methamphetamine. On a separate occasion, investigators seized a package containing one pound of marijuana destined for Brooklyn, New York. On June 4, 2015, Malauulu, Ortiz, Tamasoa, and Poloai were arrested. Malauulu, Ortiz, and Tamasoa are in custody.

This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the IRS-Criminal Investigation, the Solano County Sheriff’s Office, the Fairfield Police Department, the Vallejo Police Department, and the Contra Costa County Sheriff’s Office. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.

The investigation is part of an Organized Crime Drug Enforcement Task Force (OCDETF) that was established in 1982. 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.

If convicted, Malauulu, Ortiz, and Tamasoa each face a maximum statutory penalty of life in prison and a $10 million fine. If convicted, Poloai faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Today, after a five-day trial, a federal jury found Sacramento area loan broker and real estate agent, Anthony Salcedo, 34, of Fair Oaks, guilty of one count of conspiracy to commit mail fraud and four counts of mail fraud for his involvement in a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.

According to court documents and evidence produced at trial, Anthony Salcedo worked in the real estate industry beginning in 2000, was licensed as a real estate agent in 2004 and as a mortgage broker in 2006, and worked for two different mortgage lenders for five years. When selling his personal properties in 2005 and 2006, Salcedo worked with licensed mortgage broker Sean McClendon, 49, of Fair Oaks, and Anthony Williams, 47, previously of Memphis, Tennessee, to find buyers. As an incentive to complete the sales transactions, Salcedo paid kickbacks to the buyers and to McClendon outside of escrow. The payments were never disclosed to the lenders as part of the purchase and sale agreements, and the buyers’ income and assets were falsified in order to qualify for the loans.

Ultimately, substantial sums were exchanged outside of escrow as part of this scheme, equaling in one instance as much as 16 percent of the total purchase price of the property. The exchange of money outside of escrow reduces the fair market value of a property to below what is reflected in the contract price and impacts the appraised value of a home. At least two of the buyers declared bankruptcy and lost not only their investment properties, purchased by way of the scheme, but their own homes. In all, approximately $2.6 million in fraudulently obtained loans were involved in the scheme, while Salcedo and his family got out from under their $1.6 million in mortgage debt at a time when Salcedo knew the real estate market was slowing down.

“Much of the mortgage fraud that was so common in this region during the 2005-2008 timeframe was associated with dishonest real estate and mortgage financing professionals such as Anthony Salcedo and his co-defendants in this case,” said U.S. Attorney Wagner. “Accordingly, in our continuing effort to restore integrity and confidence to the residential real estate market, we have focused our enforcement efforts on identifying and prosecuting those professionals and the persons who aided and benefited from major mortgage fraud schemes.”

“To those involved in committing mortgage fraud, today’s verdict should send a clear message that this type of activity will have criminal consequences,” said Andrew J. Toth, Acting Special Agent in Charge, IRS-Criminal Investigation. “This is a case about dishonesty and collusion fueled by greed. While this verdict cannot reverse the damage caused by the defendants, it highlights the ongoing commitment of IRS-CI and our law enforcement partners to hold accountable those involved in these types of crimes.”

Co-defendant Sean McClendon pleaded guilty on October 12, 2013, and is awaiting sentencing. Co-defendant Anthony Williams pleaded guilty, was sentenced to two years and nine months in prison, and is currently serving that sentence.

Salcedo is scheduled to be sentenced on September 10, 2015, by Chief United States District Judge Morrison C. England Jr. The maximum statutory penalty for mail fraud and the related conspiracy is 30 years in prison, a $1 million fine, or both. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the Internal Revenue Service‑Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Marilee L. Miller are prosecuting the case.

FRESNO, Calif. —Wenceslao Cruz Ochoa, 35, of Sacramento, pleaded guilty today to possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, Ochoa was driving northbound on Interstate 5 when he was stopped for driving too closely to another vehicle. During the stop, the deputy’s canine alerted to the presence of a controlled substance. Ochoa’s vehicle was search and 19 pounds of methamphetamine was found in a suitcase.

This case is the product of an investigation by the Drug Enforcement Administration and the Fresno County Sheriff’s Department. Assistant United States Attorney Michael Frye is prosecuting the case.

Ochoa is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on September 14, 2015. Ochoa faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment against Robert Charles Chavez, 29, of Sacramento, on Thursday, June 11, 2015, charging him with one count of attempted production of child pornography and three counts of receiving child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, in January 2014, Chavez offered to pay a person approximately $66 if that person would sexually abuse a child and allow him to watch the abuse via webcam. In addition, between March 2, 2015, and March 18, 2015, Chavez used the Internet to download images of prepubescent children engaged in sexually explicit conduct. Chavez is scheduled to be arraigned today at 2:00 p.m. before U.S. Magistrate Judge Kendall J. Newman.

This case was investigated by the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento County Sheriff’s Office with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Brian A. Fogerty is prosecuting the case.

If convicted of attempted production of child pornography, Chavez faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. If convicted of receipt of child pornography, he 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.

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

SACRAMENTO, Calif. — After a nine-day trial, a federal jury returned guilty verdicts for two defendants in a firearm straw-buyer scheme involving firearms that are not on California’s roster of approved handguns, United States Attorney Benjamin B. Wagner announced.

Former Sacramento County Sheriff’s Deputy Ryan McGowan, 33, of Elk Grove, was found guilty of one count of engaging in the business of dealing in firearms without a license and one count of conspiracy to make a false statement in federal firearms records. Federal Firearms Licensee Robert Snellings, 63, of Rancho Murieta, was found guilty of five counts of conspiracy to make false statements in federal firearms records.

Under state law, California has an approved roster of firearms that may be sold to the public. A Federal Firearms Licensee is required to make sure any handgun sold is on the approved roster. There is an exemption, however, for peace officers to purchase certain firearms known as “off-roster” firearms. Peace officers who own off-roster firearms may sell them in a private sale, as long as it is brokered by a Federal Firearms Licensee. They may not, however, use these private sales to conduct a business whose principal objective is livelihood and profit through the repetitive purchase and resale of firearms.

Because off-roster firearms cannot be purchased directly by the general public, they command high prices. According to evidence produced at trial, McGowan used his position as a sheriff’s deputy to purchase off-roster guns at the retail price, and then he resold them at an inflated price on the private market in California. From 2008 to 2011, McGowan purchased 41 handguns, many of them high-caliber guns, and sold 25 of them within a year after purchase. Thirty-three of the guns were purchased through Snellings Firearms, which was owned by co-defendant Snellings. Some of those weapons were then transferred back to Snellings personally, thereby allowing Snellings to own the weapons himself or sell them to the public.

“When law enforcement officers misuse their badges to funnel dangerous weapons to the highest bidder, they compromise the safety of the public. By putting personal profit ahead of public safety, they undermine the very essence of their duty,” said U.S. Attorney Wagner. “I want to specifically thank the Sacramento Sheriff’s Office, the Sacramento Police Department, the Sacramento County District Attorney’s Office, and other regional law enforcement agencies for their partnership in the course of this investigation.”

Both defendants were found guilty of conspiracies to make false statements in federal firearms records. In order to circumvent the restrictions on purchasing off-roster firearms, they falsely stated on the ATF Form 4473 that a police officer was the actual purchaser when buying the off-roster handgun when the actual purchaser was intended to be a non-officer who was not permitted to buy the off-roster handgun. Therefore, McGowan and other police officers were acting as a straw purchasers who then transferred the handguns to the real purchasers within a short period of time.

 “The individuals who unlawfully sell firearms and falsify official firearm transaction records are in violation of the federal firearms laws and should be held accountable,” stated Acting Special Agent in Charge Eric D. Harden. “One of ATF’s top priorities is to aggressively investigate those suspects who are illegally trafficking in firearms that may ultimately end up as crime guns.”

After pleading guilty on August 28, 2012, to one count engaging in the business of dealing in firearms without a license, co-defendant Thomas Lu, 42, of Elk Grove, is scheduled for sentencing on July 9, 2015. According to court documents, Lu was a Sacramento County Sheriff’s deputy who obtained 27 off‑roster firearms and sold 23 of them, 18 of which were sold within one year.

This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the active involvement of the Sacramento Sheriff’s Office and the Sacramento Police Department. The Roseville Police Department and other law enforcement agencies assisted. Assistant United States Attorneys William S. Wong and Michael D. Anderson are prosecuting the case.

The defendants are scheduled to be sentenced on August 27, 2015. The maximum statutory penalty for each of the conspiracy charges is five years in prison, a $250,000 fine, and a term of supervised release. The maximum penalty for the charge of engaging in the business of dealing firearms without a license is 10 years in prison, a $250,000 fine, and a term of supervised release. The actual sentences 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. — Akbar Bhamani, 61, of Carmichael, was sentenced today by United States District Judge Troy L. Nunley to eight years in prison for two counts of selling unregistered securities, United States Attorney Benjamin B. Wagner announced. Bhamani was sentenced to 49 months on count one and 48 months on count two, to be served consecutively.

According to court documents, Bhamani was the founder and chief executive officer of Heaven Investments Holding Corporation (HIHC), a Sacramento company that was family-owned and operated. From February 2007 through August 2008, Bhamani and his employees solicited investors to participate in its investment programs, including the Tenants in Common (TIC) program. The TIC program was to use investor money to develop four properties, including a hotel in Oakland. HIHC sold fractionalized ownership interests to investors in each of the properties. These fractionalized interests qualified as securities, which defendant never registered with the SEC. Investors in HIHC lost between $2.5 million and $7 million.

During the sentencing hearing, a number of letters from investors who collectively lost millions of dollars were read describing the devastating impact of their losses, including in some cases, the loss of retirement money and life savings. In sentencing Bhamani, Judge Nunley commented that the defendant’s sole focus was on marketing and revenue, noting that he continued to misrepresent the profitability of the company to investors just months before filing for bankruptcy on behalf of the company in August 2008. Judge Nunley ordered the defendant to pay restitution, the amount of which will be determined at a later proceeding.

This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Michele Beckwith prosecuted the case. The remaining defendants have pleaded guilty and await sentencing.

FRESNO, Calif. — Valentin Aispuro, 38, of Tulare, was sentenced today by United States District Judge Anthony W. Ishii to four years and three months in prison for possession with intent to distribute marijuana and possession of a firearm by a felon, United States Attorney Benjamin B. Wagner announced.

According to court documents, in January 2013, Tulare Police Department detectives obtained search warrants for two residences in Tulare believed to be used by Aispuro and co-defendant Imelda Martin for narcotics sales. During the search, officers found four firearms, 130 pounds of marijuana and cash. Aispuro was a convicted felon and not entitled to possess a firearm.

Both defendants pleaded guilty, and on March 3, 2014, Martin was sentenced to one year and eight months in prison for her role in the offense.

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

FRESNO, California – Raul Canchola Farias, 40, of Pacoima, was sentenced today by U.S. District Judge Anthony W. Ishii  to 11 years and three months in prison for possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, Farias was arrested on November 5, 2013, after a California Highway Patrol officer stopped his vehicle on Highway 99 in Bakersfield and found over 21 pounds of methamphetamine secreted in the vehicle.

This case was the product of an investigation by the Drug Enforcement Administration and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney prosecuted the case.

SACRAMENTO, Calif. — Terrylyn McCain, 67, of Stockton, was sentenced today by United States District Judge Troy L. Nunley to five years and 10 months in prison for tax fraud, making false claims against the United States, and money laundering, United States Attorney Benjamin B. Wagner announced. In addition to the prison term, Judge Nunley ordered McCain to pay $156,373 in restitution, the amount she received early in her false refund scheme.

On March 13, 2015, after a five-day trial, a jury found McCain guilty of four counts of mail fraud for mailing false tax returns, four counts of making false claims against the United States by falsifying personal income tax returns for tax years 2005 to 2008, and three counts of money laundering for buying gold with proceeds of the fraud.

According to court documents and evidence introduced at trial, McCain mailed tax returns to the IRS and claimed that banks, tow truck companies, department stores, interior designers and even her gardener had withheld income due to her. To support her scheme, she utilized false documents that indicated significant tax withholdings, including 1099–OID forms that were purportedly issued by financial institutions such as the Bank of Stockton and national retailers such as Costco and Target. In reality, funds were never withheld, the 1099–OID forms were fraudulent, and McCain’s tax returns were falsely inflated by hundreds of thousands of dollars.

In total, McCain filed at least 12 fraudulent returns that sought nearly $3 million in tax refunds. In just one instance, early in the scheme, the IRS refunded $156,373 to McCain. Within the month, she had used the refund money to purchase approximately $62,000 in gold coins, forming the basis for the money laundering charges.

In sentencing McCain, Judge Nunley told the defendant, “You are a cheat, a liar … you stole from the government and others.”

This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorneys William S. Wong and Kevin Khasigian are prosecuting the case.

SACRAMENTO, Calif. — A federal grand jury returned a 13-count indictment today against seven Sacramento residents, charging them with conspiracy, access device fraud, aggravated identity theft, and possession of stolen mail, United States Attorney Benjamin B. Wagner announced.

The indictment alleges that co-defendants Steven Khamkeuanekeo, 33, Kay Lee, 26, Chee Yang, 27, Frank Her, 36, Amy Her, 33, Lee Yang, 33, and Tou Her, 36, conspired to use unauthorized access devices at large retailers and stole victims’ identities through stolen mail.

According to the indictment, from July 2014 through April 2015, the conspirators obtained personal information from victims through various methods. The conspirators then used that information to create counterfeit access devices or otherwise used unauthorized access devices to obtain things of value in excess of $1,000. Part of the scheme involved using Target store account numbers to buy large amounts of electronics and other goods at Target locations throughout the Sacramento area. The indictment further alleges that one of the defendants, Frank Her, possessed device-making equipment with the intent to defraud.

In all, the indictment alleges that at least 500 counterfeit and unauthorized access devices were possessed, used, produced, or trafficked by members of the conspiracy, and over 2200 victims have been identified to date as having had their identities or mail compromised as a result of the conspiracy.

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

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

SACRAMENTO, Calif. — Ivan Espinoza Villafana, 25, a Mexican national, was sentenced today by United States District Judge Troy L. Nunley to five years in prison and restitution of $14,400 for possession of a firearm by an illegal alien, cultivation of marijuana, and depredation of public lands and resources, United States Attorney Benjamin B. Wagner announced.

According to court documents, on August 19, 2014, law enforcement officers entered a marijuana cultivation site near Ice Springs in the Mendocino National Forest in Glenn County where 732 marijuana plants were growing. After seeing law enforcement approach, Villafana fled. He was apprehended and arrested at the site. At the time of his arrest, Villafana had a loaded Smith & Wesson revolver tucked in his waistband. Officers also found a rifle in the camp area of the site. Villafana has been in custody since his arrest.

Marijuana cultivation at the site caused significant natural resource damage. Irrigation piping diverted water from a nearby stream to the marijuana plants, which require approximately 6-8 gallons of water per plant per day. Law enforcement also observed numerous bags of fertilizer and pesticides, which were used to grow marijuana. A U.S. Forest Service hydrologist who surveyed the site concluded that fertilizer and pesticides impact runoff into streams and would damage water quality and harm wildlife, as animals in the National Forest are likely to ingest the pesticides and fertilizers. Further, marijuana cultivators at the site cut and cleared trees and vegetation in the National Forest to make room for marijuana plants. Repairing and rehabilitating the damage to the National Forest from this cultivation will cost the United States between $14,400 and $73,500.

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

SACRAMENTO, Calif. – Jacquelyn C. Strong, Administrative Officer of the U.S. Attorney’s Office in the Eastern District of California, was one of 160 members of the Department of Justice recognized by Attorney General Loretta Lynch, Deputy Attorney General Sally Quillian Yates, and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 31st Director’s Awards Ceremony today in Washington, D.C.

The Eastern District of California was one of 31 districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building.

"Our honorees include career executives and supervisors; Assistant U.S. Attorneys and Special Assistant U.S. Attorneys; appellate attorneys and law enforcement officials; administrators, paralegals, and public affairs officers," said Attorney General Lynch. "These individuals, and so many others, have faced daunting and sometimes dangerous challenges. They have dedicated their leadership and their expertise, their time and their energy, to the service of their mission. And they have remained devoted, at all times, to the high ideals and deeply-held values that animate our country and our cause."

Jacquelyn C. Strong is recognized for her outstanding leadership of the Administrative Division over a particularly challenging year. During the 16-day government shutdown, Ms. Strong worked tirelessly to meet the needs of the attorneys who were still on duty while regularly communicating with the support staff, many of whom were furloughed, and maintaining their morale. When our long-time employee Joyce Dorsey unexpectedly died of the flu, Ms. Strong communicated the news with sensitivity, addressing the staff’s health concerns and attending to grieving employees and family. During the same year, Ms. Strong oversaw a major remodeling project in the Sacramento office, ensuring it did not disrupt office operations, worked to establish the new Bakersfield office, and hosted visits to the district by the Executive Office’s evaluation staff. Ms. Strong, who has served as Administrative Officer for 17 of her 34 years in the office, earned the highest marks during our recent office evaluation, which praised her staff’s “top notch customer service.”

United States Attorney Benjamin B. Wagner stated: “Jackie Strong has provided outstanding service to the Department of Justice for many years. She has deftly guided this office in budgetary, personnel and administrative matters through good times and bad, and has loaned her expertise to other districts. I am pleased that her leadership is being recognized nationally.”

EOUSA provides oversight, general executive assistance, and direction to the 94 United States Attorneys’ offices around the country. For more information on EOUSA and its mission, visit http://www.justice.gov/usao.

SACRAMENTO, Calif. — Aimee Sharon Burgess, 36, of Shasta Lake, was sentenced today by United States District Judge Kimberly J. Mueller to five years in prison for conspiring to distribute marijuana and conspiracy to launder money, United States Attorney Benjamin B. Wagner announced.

According to court documents, Burgess conspired with others to manufacture and distribute marijuana that had been grown in California and shipped to Pennsylvania for sale. When federal agents searched the house that she shared with co-defendant, Glen Edward Meyers in September 2013, they discovered numerous guns, approximately 20 pounds of processed marijuana packaged for resale, as well as cash, heat sealers, and other indicia of drug trafficking. Although Burgess was initially released pending trial, her bail was revoked after she violated court orders by communicating with Meyers through surreptitious telephone calls while he was detained at the Sacramento County Jail. As part of the investigation, agents also discovered a warehouse at another location, which contained approximately 490 plants in various stages of growth.

This case was the product of an investigation by the Internal Revenue Service – Criminal Investigation and the Sacramento Valley Financial Crimes Task Force, with assistance from the Pennsylvania State Police, the Drug Enforcement Administration, and the Pennsylvania, Washington County Drug Task Force. Assistant United States Attorneys Michele Beckwith, Michael D. McCoy, and Kevin Khasigian prosecuted the case.

On April 22, 2015, Judge Mueller sentenced Meyers to more than eight years in prison in the same case.

SACRAMENTO, Calif. — Cedric Sewell, 52, of Stockton, was sentenced today by United States District Judge Troy L. Nunley to 17 years and seven months in prison for possession with intent to distribute heroin, possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking offense, and being a felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.

According to court documents, on March 5, 2014, law enforcement officers conducted a probation search of Sewell’s residence and found a .38‑caliber revolver that was fully loaded with live rounds. The kitchen had been converted to a heroin manufacturing operation, and agents found five kilograms of heroin and 500 grams of cocaine. Also in the kitchen were strainers, digital scales, cutting agents, hundreds of baggies, a money counter, and other items used in drug manufacturing and distribution. An AR-15 assault rifle, several other firearms, a cache of ammunition, and approximately $67,000 was also found.

This case was the product of an investigation by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Alameda County Narcotics Taskforce, the San Bernardino Probation Department, and the San Joaquin District Attorney’s Office. Assistant United States Attorney Olusere Olowoyeye prosecuted the case.

SACRAMENTO, Calif. — Shanntaye Ebony Hicks, 25, of Sacramento, was sentenced today to 24 years and four months in prison for two counts of transportation of a minor with intent to engage in criminal sexual activity, United States Attorney Benjamin B. Wagner announced.

According to court documents, Hicks recruited at least four teenaged victims (aged between 13 and 17 years old) to engage in criminal sexual activity. Hicks posted advertisements soliciting customers to have sex with the teenaged victims, received telephone calls from customers and negotiated prices. She transported the teenaged victims to the customers, and collected money the customers gave the victims. Hicks targeted vulnerable minor victims, some of whom were runaways, befriended them, and induced them to engage in sex acts with strangers by providing them with drugs and alcohol. Hicks also brandished a handgun and used threats of violence to enforce the loyalty of her victims and to prevent them from fleeing from her control. She transported one of her teenaged victims to several cities in California and Nevada with the intent that the minor engage in sex acts for money.

U.S. Attorney Wagner stated: “The sentence imposed today appropriately reflects the very real and lasting harm the defendant inflicted upon her young victims.  My office, together with our partners at the Innocence Lost task force, will continue to aggressively investigate and prosecute those engaging in the abuse and sexual exploitation of minors.”

“Perpetrators of these crimes can be male or female. Regardless, those who exploit children and manipulate these victims solely for financial gain will be dealt with to the fullest extent of the law,"  said Supervisory Special Agent Maria Johnson of the Sacramento field office of the FBI.  "We are grateful for the continued partnership that exists among our agencies who are part of the FBI's Child Exploitation Task Force. These investigators are fully committed to identifying and investigating individuals who prey upon our children to end their criminal operations."

This case was the product of an investigation by the FBI’s Child Exploitation Task Force, Innocence Lost National Initiative, which combines special agents of the FBI and detectives of the Sacramento Police Department. Assistance during the investigation was also provided by the Bakersfield Police Department and the Las Vegas Metropolitan Police Department. Assistant United States Attorney Andre M. Espinosa prosecuted the case.

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

SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Eric Worrell, 57, of Rancho Cordova, charging him with receipt of child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, a thumb drive found in a hallway outside the offices of the federal Department of Transportation in Sacramento was turned over to investigators, who determined it belonged to Worrell. A forensic review of the thumb drive and Worrell’s work laptop found they contained hundreds of images of child erotica and child pornography.

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

Worrell has remained in custody since his arrest on March 19, 2015. If convicted, Worrell 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.

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

FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Bryson LaPaul Blair, 29, of Bakersfield, charging him with possession of a firearm and ammunition after having been convicted of a felony and domestic violence misdemeanor, United States Attorney Benjamin B. Wagner announced.

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

This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Bakersfield Police Department. The case is part of Project Safe Neighborhoods (PSN), which is the U.S. Department of Justice’s primary initiative to combat gun crime and gang-related violence. Assistant United States Attorney Karen Escobar is prosecuting the case.

If convicted, Blair faces a maximum statutory penalty of 10 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.

FRESNO, Calif. — Edgardo Fournier, aka Edgardo Fournier-Nigaglioni, 46, of Perris, was sentenced today to six years and 10 months in prison for his involvement in a large‑scale marijuana cultivation operation on federal land in Kern County and for his role in starting the Nicolls Fire, according to U.S. Attorney Benjamin B. Wagner.

In sentencing Fournier, U.S. District Judge Lawrence J. O’Neill ordered Fournier to pay $6,509,329 in restitution to the U.S. Forest Service.

According to court documents, from about April 1, 2014 to July 12, 2014, Fournier helped water and tend 2,090 marijuana plants at a grow site in the Smith Canyon area of the Sequoia National Forest in Kern County. He admitted that on July 11 and 12, he lit fires in the vicinity of the grow site within the boundaries of the federally designated Kiavah Wilderness Area. The fires converged and became known as the Nicolls Fire. The Nicolls Fire destroyed about 1,680 acres of public land causing over $6.5 million of damage. The fire did not damage the marijuana cultivation site, which also caused significant damage to the land and natural resources of the forest.

This case was the product of an investigation by the U.S. Forest Service, the U.S. Bureau of Land Management (BLM), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.

FRESNO, Calif. — Abel Martin Carreon, 57, formerly of Fresno, pleaded guilty today to one count of mail fraud and one count of aggravated identity theft in connection with a scheme involving surety bonds and government contracts, United States Attorney Benjamin B. Wagner announced

According to court documents, between April 2005 and May 2011, Carreon devised and executed 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 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 $1,253,000.

Department of Interior, Office of Inspector General Special Agent-In-Charge, David House stated: “This guilty plea represents the Department of Interior's, Office of Inspector General's commitment to pursue fraud involving the Department’s programs and operations.”

“As evidenced by the guilty plea entered into today by Mr. Abel Carreon, we remain steadfast in our commitment to maintaining the integrity of projects funded through Federal Highway Administration programs,” said William Swallow, regional Special Agent-in-Charge of USDOT’s Office of Inspector General. “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.”

"We remain committed to fighting white collar crime affecting the United States and the General Services Administration," said U.S. General Services Administration Acting Inspector General Robert C. Erickson.

“The Department of Homeland Security (DHS), Office of Inspector General’s (OIG) highest priority is to ensure the integrity of the Department’s programs and operations. Today’s guilty plea by Abel Martin Carreon reaffirms the DHS OIG’s commitment to aggressively pursue, investigate, and hold accountable those who commit fraud against the Federal Emergency Management Agency. Such egregious violations will not be tolerated. The DHS OIG, our law enforcement partners, and the U.S. Attorney’s Office will continue to work tirelessly to bring justice to those who commit such fraud,” stated Roger T. Merchant, Special Agent-in-Charge, Los Angeles Field Office.

“America's Warfighters deserve the very best to perform their jobs and the taxpayers expect nothing less. Fraud committed by defense contractors not only takes away precious resources necessary for the protection of our brave solders, airman and marines, it also undermines the confidence of the American public who demand  that tax dollars are used responsibly. This investigation should serve as a warning for those intent on defrauding the U.S. military and American public that the Defense Criminal Investigative Service (DCIS) and our law enforcement partners will pursue these crimes relentlessly,” said Chris Hendrickson, Special Agent in Charge, DCIS, Western Field Office.

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

Carreon is scheduled to be sentenced on August 17, 2015, by United States District Judge Anthony W. Ishii. Carreon faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for mail fraud and a mandatory consecutive sentence of two years in prison for aggravated identity theft.

SACRAMENTO, Calif. — Jordan James Kirby, 23, of Paradise, was sentenced today by United States District Judge Garland E. Burrell Jr. to 29 years in prison for production of child pornography and enticement of a minor, United States Attorney Benjamin B. Wagner, FBI Special Agent in Charge Monica M. Miller, Butte County District Attorney Michael L. Ramsey, and Paradise Police Chief Gabriela F. Tazzari‑Dineen announced.

According to court documents, between 2011 and 2013, Kirby used various online identities on Facebook to solicit women and juvenile girls for lascivious and sexually explicit photographs, which he would then use them to extort them. Generally, Kirby’s initial posts stated that he was an agent for a modeling agency and offered thousands of dollars to girls for photographs of themselves in their underwear, bikinis, or various stages of undress. As an inducement, Kirby told the girls that he had come into a large amount of money, and sent pictures of himself holding a large wad of cash, or a large amount of cash spread on his computer. After receiving the desired photos, Kirby used the embarrassing pictures to extort or attempt to extort sex acts from victims. On March 6, 2015, Kirby pleaded guilty to two counts of enticement of a minor, three counts of attempted production of child pornography, and one count of attempted enticement of a minor. The victims were between the ages of 10 and 15.

U.S. Attorney Wagner said: “While always reprehensible, on-line exploitation and extortion of under-aged victims inflicts very real and lasting harm upon our community’s most vulnerable victims. We will continue to work together with our federal and local law enforcement partners to bring such predators to justice.”

“Kirby took unlawful and inappropriate pictures of multiple children, using social media as a platform for his crimes, and then extorted an threatened children to obtain more photographs.  His is conduct is reprehensible,” said Supervisory Special Agent Monica M. Miller.   “Kirby committed his crimes by exploiting the anonymity and distance of internet communications. This case highlights the need for family dialogue about the potential dangers of online interaction. Social media platforms present safety risks that are akin to any public space and all users should know the steps to take to report suspicious activity.  In this case, prompt response from the victims’ parents enabled law enforcement to identify Kirby, ceasing his ability to continue to victimize others.  We thank our law enforcement partners for the collaborative effort to identify Kirby and ensure that he faced justice for his crimes.”

District Attorney Michael L. Ramsey said: “I appreciate the collaborative work with both the local and federal agencies that resulted in taking a predator off of the streets for the next twenty-nine years.”

Chief Tazzari-Dineen said: “The Paradise Police Department considers the safety of all citizens to be a top priority and it is especially true of children. A predator of young children has been removed from our community. We appreciate the collaboration and assistance of the local FBI Office and the Butte County District Attorney’s Office with this investigation.”

This case was the product of an investigation by the Federal Bureau of Investigation, the Paradise Police Department and the Butte County District Attorney’s Office. Assistant U.S. Attorney Sherry Haus prosecuted the case.

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

SACRAMENTO, Calif. — United States Attorney Benjamin Wagner announced that Seth Michael Bertolini, 44, of Chico, was sentenced Thursday by U.S. District Judge Troy L. Nunley to six years and five months for being a felon in possession of a firearm and for drug trafficking. Bertolini was convicted on January 15, 2015.

This case was the product of an investigation by the Federal Bureau of Investigation, Chico Police Department, and the Butte County Interagency Narcotics Task. Assistant U.S. Attorney Michelle Rodriguez prosecuted the case.

On June 4, 2014, law enforcement in Chico stopped Bertolini for driving with his car’s radio system playing loudly. During the stop, Bertolini emerged from his car animated and agitated. He then turned and fled. After a foot pursuit, Bertolini was caught and found to possess on his person and in his car heroin that was packaged for distribution and a fully loaded Smith and Wesson .32-caliber revolver. During a later search of Bertolini's residence, Bertolini was found to possess additional heroin, trafficking paraphernalia, and another gun, a Ceska Zbrojovka, 7.62 mm, semi-automatic pistol.

SACRAMENTO, Calif. — James Stewart Richards, 69, of West Sacramento, pleaded guilty today to tax evasion, United States Attorney Benjamin B. Wagner announced.

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

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

Richards is scheduled to be sentenced on September 10, 2015, by United States District Judge Morrison C. England Jr. Richards faces a maximum penalty of five years in prison and a $100,000 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. — A federal grand jury returned a one-count indictment today against Charles Carstersen, 52, of Manteca, charging him with sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.

According to court documents, between February and March 2015, while Carstersen was employed at the Bureau of Prisons, he recruited a 16-year-old girl to engage in prostitution. He rented hotel rooms for her in the Sacramento area, helped her to post ads online, and bought her clothes. On May 11, 2015, Carstersen was arrested and has been in custody as a flight risk and a danger to the community.

This case is the product of an investigation by the Federal Bureau of Investigation’s Sacramento Child Exploitation Task Force of which the Sacramento Police Department is a member, the U.S. Department of Justice, Office of the Inspector General, and the Roseville Police Department. Assistant United States Attorney Michele Beckwith is prosecuting the case.

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

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

SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Nathan Alexander Drury, 36, of Chico, charging him with nine counts of production of child pornography and one count of possession of child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, between January 2013 and December 2014, Drury filmed and photographed sexually explicit images of a prepubescent child. Drury also possessed additional images of children engaged in sexually explicit conduct.

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Federal Bureau of Investigation, and the Chico Police Department. Assistant United States Attorney Brian A. Fogerty is prosecuting the case.

Drury has been in custody since he was arrested on March 23, 2015. He is scheduled to be arraigned today before U.S. Magistrate Judge Dale A. Drozd in Sacramento.

If convicted, each of the production of child pornography counts carries a maximum statutory penalty of 30 years in prison. If convicted of the possession of child pornography charge, Drury faces a maximum statutory penalty of 10 years in prison. Each charge in the indictment carries a potential fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

SACRAMENTO, Calif. — A federal jury found Troy Stratos, 49, formerly of Los Angeles, guilty today of four counts of wire fraud and two counts of money laundering, in a scheme to defraud, United States Attorney Benjamin B. Wagner announced.

According to evidence presented at trial, beginning in December 2010 and continuing through February 2012, Stratos engaged in a scheme to defraud a financial manager in Pennsylvania of approximately $11,250,000. Tim Burns was in the market to buy Facebook stock, pre-IPO (initial public offering), for some of his clients in 2011. Stratos, who used the alias “Ken Dennis,” because his own name had numerous negative postings on the Internet, told Burns that he represented Carlos Slim, one of the wealthiest individuals in the world. Stratos claimed that Carlos Slim was in the process of purchasing a large block of Facebook shares, and Stratos offered to sell to Burns favorably priced Facebook shares that were in excess of what Carlos Slim was purchasing. Stratos also claimed to be connected with insiders at Facebook, including Mark Zuckerberg, and Facebook’s CFO. Stratos promised increasingly larger amounts of Facebook stock starting at approximately two million shares and up to 40 million shares. Based on the representations by Stratos, Burns sent three wire transfers totaling $11,250,000 to purchase the Facebook stock. The first wire transfer was sent to the client-trust account at Venable LLP, which was the law firm that Stratos had retained. The subsequent wire transfers were sent to bank accounts that Stratos controlled.

Throughout the scheme, Stratos assured Burns that the deal would close at any moment, often promising that the “papers” were about to be signed. Alternatively, Stratos offered to refund to Burns his deposit, even within a few days, but warned Burns that he would regret missing the opportunity to make money.

On December 20, 2011, the Federal Bureau of Investigation arrested Stratos in Los Angeles for a separate fraud scheme. Stratos, through text messages and a telephone call, continued to tell Burns that the deal was real and that he could refund Burns’s money. By this time, Stratos had spent nearly all of the $11.25 million.

The maximum statutory penalty for mail and wire fraud is 20 years in prison and a fine of up to twice the gain or loss from the fraud. The maximum statutory penalty for money laundering is 10 years in prison and a $10,000 fine or twice the value of the criminally derived property. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Stratos is scheduled for trial for a separate scheme on October 5, 2015. According to the charges relating to the separate scheme, Stratos allegedly defrauded a woman of at least $7 million by convincing her that he would manage the proceeds of her divorce by investing them overseas where they would earn a high rate of return. These remaining charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

FRESNO, Calif. — United States Attorney Benjamin B. Wagner is pleased to announce the 2014 winner of the Eastern District of California Law Enforcement Award for Outstanding Investigator in the Fresno Division. This award is one of four awards presented annually to a law enforcement agency and an officer in each of the Sacramento and Fresno divisions of the Eastern District of California to recognize outstanding collaboration between federal state and local law enforcement in addressing public safety issues in this region.

The 2014 Fresno Division’s Outstanding Law Enforcement Investigator Award goes to Dwayne Johnson of the Tulare County Office of the District Attorney’s Bureau of Investigations for his work with the San Joaquin Valley Mortgage Fraud Task Force (MFTF). In this capacity, Investigator Johnson has worked closely with the Fresno U.S. Attorney’s Office and its partner federal law enforcement agencies in leading several mortgage fraud-related investigations and prosecutions that have targeted large-scale fraud schemes, yielded significant guilty pleas and vindicated the rights of countless victims.

In May 2013, Investigator Johnson was the lead investigator in a fraudulent foreclosure rescue business case. On the basis of a single complaint, Johnson commenced a long-term investigation that ultimately uncovered a fraud scheme that victimized dozens of homeowners in numerous counties, many of whom eventually lost their houses in foreclosure. Johnson prepared and undertook the execution of several search warrants, reviewed thousands of pages of documents, conducted dozens of witness interviews and planned and executed various undercover operations. Juan Ramon Curiel and Santiago Palacios-Hernandez (Case No. 1:13-cr-188 LJO), pleaded guilty in December 2014 and admitted that they had caused more than $2.5 million in losses to more than 50 vulnerable homeowners and financial institutions.

"The financial crisis hit our communities particularly hard and over the past six years our office has taken a leading role in prosecuting those who engaged in mortgage fraud to enrich themselves while harming our economy and driving down the value of our neighborhoods," said U.S. Attorney Wagner. "Our success was only possible because of dedicated, hard-working law enforcement officers like Investigator Johnson. My office, the Eastern District, and Tulare County all owe a great debt to Investigator Johnson and his many skilled and dedicated colleagues in local law enforcement who do the heavy lifting in protecting our communities."

Earlier this year, three of the 2014 awards were presented to the Tehama County Sheriff’s Office and the Fresno County Sheriff’s Office for their outstanding work in cooperation with the U.S. Attorney’s Office. Last week the 2014 award for Outstanding Investigator in the Sacramento Division was presented to Sacramento Police Department’s Detective Derek Stigerts for his work investigating crimes involving the sex trafficking of minors.

FRESNO, Calif. —Santos Acevedo Gutierrez, 41, of Shafter, was sentenced today by United States District Judge Lawrence J. O’Neil to 17 years and six months in prison and the forfeiture of $10,123 for possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, on April 30, 2014, law enforcement officers executed a search warrant at Gutierrez’s home in Shafter and seized approximately four pounds of methamphetamine as well as a digital scale, packaging materials and over $10,000 in United States Currency. Gutierrez was on federal supervised release after serving a prison sentence for a previous federal drug felony conviction at the time of the search.

“As this sentence makes clear, trafficking methamphetamine is a serious offense that will be punished with the fullest extent of the law,” said Michael Toms, resident agent in charge of HSI Bakersfield. “Left unchecked, this highly dangerous substance destroys lives and wreaks havoc on entire communities. HSI, together with its local law enforcement partners, is committed to using every tool and authority at its disposal to combat the menace posed by meth.”

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Kern County Sheriff’s Office. Assistant United States Attorney Brian K. Delaney is prosecuting the case.

FRESNO, Calif. — Arlene Jeanette Mojardin, 32, of Bakersfield, was sentenced today by United States District Judge Anthony W. Ishii to two years and six months in prison for conspiring to commit bank fraud, mail fraud, and wire fraud, in connection with a mortgage fraud scheme in Bakersfield, United States Attorney Benjamin B. Wagner announced.

According to court documents, from 2007 to 2010, Mojardin conspired with others to use straw buyers to purchase residential properties in Bakersfield. They paid straw buyers to purchase properties developed by Jara Brothers Investments (JBI) and Pershing Partners LLC and funded the purchases using loans they obtained based on false and fraudulent loan applications. The loan applications contained false statements concerning the straw buyers’ employment status, income, assets, intent to occupy the properties as their personal residences, and the source for the down payments for the purchase of the properties. The conspirators concealed from the lenders that the property developers funded some down payments. They submitted false supporting documentation to lenders such as false and altered bank account statements purporting to show that the straw buyers had high bank account balances, false verifications of the straw buyers’ bank account funds, false verifications of rent purporting to be from the straw buyers’ landlords, false pay stubs, and false verifications of employment.

Mojardin was a licensed real estate agent and handled many of the real estate transactions in furtherance of the conspiracy. She was also employed at relevant times at JBI, was a property buyer from Pershing Partners on at least two of the real estate transactions in the conspiracy, and obtained loans based on false and fraudulent information. Mojardin received proceeds from the conspiracy including payments for purchasing property as a nominee buyer and payments for acting as the real estate agent on many of the other transactions in the conspiracy. Mojardin admitted she caused lenders approximately $3,713,600 in losses due to her role in the conspiracy.

This case is the product of a joint investigation by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk E. Sherriff, Henry Z. Carbajal III, and Megan A. S. Richards are prosecuting the case.

Co-defendant Antonio Perez-Marcial was sentenced on May 12, 2014, to three years and 10 months in prison  for his role in the conspiracy. Co-defendant Candace Gonzales previously pleaded guilty to conspiracy to commit bank fraud, mail fraud, and wire fraud, and her sentencing is set for June 8, 2015. Co-defendant Ricardo Salinas previously pleaded guilty to bank fraud, and his sentencing is set for June 29, 2015. Co-defendant Melissa Jara pleaded guilty to wire fraud and her sentencing is set for June 22, 2015. Co-defendants Eliseo and Sergio Jara previously pleaded guilty to conspiracy to commit bank fraud, mail fraud, and wire fraud, and their sentencing hearings are set for June 22, 2015. Co-defendants Lucia and Joseph Chavez previously pleaded guilty to conspiracy to commit bank fraud, mail fraud, and wire fraud and their sentencing hearings are set for July 20, 2015.

The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.

SACRAMENTO, Calif. — Jamie Rangel, 27, of Ripon, was sentenced today by United States District Judge Garland E. Burrell Jr. to 14 years in prison for conspiring to distribute methamphetamine and for possessing methamphetamine with the intent to distribute, United States Attorney Benjamin B. Wagner announced. On May 1, 2015, Rangel’s co-defendant, Daniel Covarrubias, 23, of Ripon, was sentenced to eight years and five months in prison.

According to court documents, Rangel and Covarrubias were members of a methamphetamine distribution conspiracy in the city of Ripon. Over the course of two months, undercover agents purchased approximately 1.387 kilograms of methamphetamine from them. Rangel and Covarrubias were arrested in Modesto at the conclusion of the operation.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Ripon Police Department, the Stockton Police Department, and the San Joaquin Sheriff’s Office. Assistant United States Attorney Olusere Olowoyeye prosecuted the case.

SACRAMENTO, Calif. — Denise Wasicki, 40, of Yuba City, pleaded guilty today to two counts of mail fraud in a scheme to defraud a staffing agency out of more than $500,000 in an employee recruitment scheme for a fake business, United States Attorney Benjamin B. Wagner announced.

According to court documents, Wasicki operated a scheme to defraud a staffing agency. In June 2009, Wasicki was employed by a staffing and payroll services agency based in Hanover, Maryland to fill a temporary position at a hospital in Yuba City. When she was terminated by the hospital, Wasicki created a fictional company called Healthcare Quality Management Group (HQMG) that had a fictional client that was purportedly a medical office in Yuba City. Posing as “Jackie Stemmons,” Wasicki engaged the staffing agency to provide staff for the medical office and gave them her own name as the person who should be hired. Because Wasicki had been employed by the agency previously, they were able to expedite her hiring and ultimately placed her in an office manager position.

Between July 28, 2009, and May 12, 2010, Wasicki sent time cards and requests for expense reimbursements to the agency for herself and for an assistant office manager at the fictional medical office. As part of the scheme, Wasicki sent the agency fraudulent checks to reimburse it for payroll services it provided, all of which were drawn on fictitious accounts and all of which bounced. As a result of her actions, the agency sustained a loss of more than $500,000.

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

Wasicki is scheduled to be sentenced by Chief U.S. District Judge Morrison C. England Jr. on August 6, 2015. The maximum statutory penalty for each violation of wire fraud is 20 years in prison and a $250,000 fine. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — A federal grand jury has returned two separate indictments against two Fresno County men for being felons in possession of a firearm. United States Attorney Benjamin B. Wagner announced.

In the first case, Adrian Delgado 31, of Mendota, was charged with being a felon in possession of a firearm and possession of a firearm in a school zone. According to court documents, on March 17, 2015, officers from Mendota Police Department encountered Adrian Delgado near Mendota Elementary School. Officers found a loaded Taurus, .327-caliber handgun in Delgado’s waistband. Delgado said he had just come from his child’s school. Delgado has prior felony convictions.

In the second case, Steven Estrada, 29, of Fresno, was charged with being a felon in possession of a firearm. According to court documents, on April 23, 2015, Fresno Police Department officers responded to a report of an individual who had a gun behind an abandoned house. Officers arrived and encountered Estrada coming out of the garage behind an abandoned house. They located the gun that Estrada is charged with possessing in the garage. Estrada has prior felony convictions.

If convicted, Delgado faces up to 15 years in prison and a $500,000 fine, and Estrada faces up to 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

These cases are the product of investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Fresno 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. The cases are being prosecuted by Assistant U.S. Attorney Kimberly Sanchez.

FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Fresno residents Eduardo Fernandez, aka, Lalo, aka, Flavio Rios, 35; Miguel Medina, 62; and Alexis Antonio Alvarez Guzman, 19, charging them with conspiracy to distribute and possess with intent to distribute methamphetamine and possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, in April 2015, Fernandez received a shipment of methamphetamine from Mexico with Medina’s assistance. Fernandez took it to a residence in Visalia where Guzman was located. When agents served a search warrant at the residence, they found 16 pounds of methamphetamine.

This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation involving the Drug Enforcement Administration, Fresno Police Department, Madera Narcotic Enforcement Task Force, Visalia Police Department, Tulare County Sheriff’s Office, and California Highway Patrol. OCDETF is a program that facilitates joint investigative work by federal, state, and local law enforcement agencies. Assistant United States Attorney Kimberly A. Sanchez is prosecuting the case.

If convicted, Fernandez faces a maximum statutory penalty of life in prison and a $30 million fine. Medina and Guzman are facing a maximum penalty of 20 years in prison on each of two counts, and a $1 million fine on each of two counts. 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. — Robert Vargas, 29, of Stockton, was sentenced today by United States District Judge Morrison C. England Jr. to 15 years in prison for conspiring to distribute and to possess with intent to distribute methamphetamine, possession with intent to distribute MDMA, and possession of a firearm in furtherance of a drug trafficking crime, United States Attorney Benjamin B. Wagner announced.

According to court documents, between August and September 2013, Vargas and co-defendant Robert Guerena, 21, of Stockton, met with an undercover agent on four separate occasions to conduct methamphetamine transactions. Each of these meetings occurred in a Walmart parking lot in Stockton, and with each subsequent meeting, the amount of methamphetamine provided by the defendants to the undercover officer agent increased. On September 19, 2013, the defendants arrived at the Walmart parking lot intending to provide the undercover agent with two pounds of methamphetamine. Before the transaction was completed, both defendants were arrested. In all, the defendants provided the undercover agent with approximately 1.2 kilograms of pure methamphetamine.

A search warrant executed at Vargas’ residence recovered a Glock pistol, 25 grams Ecstasy (MDMA) pills (including packaging), multiple digital scales, multiple gun magazines (including a high capacity magazine), and two bullet proof vests.

On April 23, 2015, Guerena was sentenced to 11 years and three months in prison.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Stockton Police Department, and the San Joaquin Sheriff’s Office. Assistant United States Attorney Olusere Olowoyeye prosecuted the case.