Eastern District of California

SACRAMENTO, Calif. — Attorney General Eric Holder presented three Justice Department employees and one former employee in the Eastern District of California with Attorney General Awards at a ceremony today in Washington DC. These annual awards, which are the highest honors bestowed by the Department, recognize Department employees and other individuals for their dedication to carrying out the Department of Justice’s mission.

“With this important event, we come together to honor some of our nation’s most distinguished, dedicated, and deserving public servants,” said Attorney General Holder. “The hard work and impressive achievements of these 278 award recipients have inspired their colleagues at every level of the U.S. Department of Justice – including me. Their leadership has been indispensable in defining the past year as one of historic accomplishment in the face of nearly unprecedented challenge.”

The Attorney General’s Award for Distinguished Service is the Justice Department’s second highest award for employee performance. The recipients of this award exemplify the highest commitment to the department’s mission. Attorney General Holder presented the Distinguished Service Award to the Eastern District Assistant United States Attorneys for their work that led to an unprecedented civil settlement with JPMorgan Chase.  The settlement negotiations and the predicate fraud investigations they undertook led to what was the largest settlement with a single entity in American history - $13 billion – and the largest Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) penalty ever recovered by the department - $2 billion. The tireless efforts of the recipients advanced core missions of the department by holding wrongdoers accountable for reckless and abusive conduct that contributed to the financial crisis, as well as providing substantial compensation for federal entities supported by American taxpayers and critical assistance to neighborhoods impacted by the mortgage meltdown.

The recipients of the Attorney General’s Award for Distinguished Service include the Eastern District of California’s Assistant U.S. Attorneys David T. Shelledy, Kelli L. Taylor, and Colleen M. Kennedy and former Assistant U.S. Attorney Richard Elias.

“We are delighted that the Attorney General has recognized Assistant U.S. Attorneys David T. Shelledy, Kelli L. Taylor, and Colleen M. Kennedy and former Assistant U.S. Attorney Richard Elias for their outstanding contributions to the Department and its mission,” said Benjamin B. Wagner United States Attorney for the Eastern District of California. “These awards are deserved recognition for these skilled attorneys, whose tireless work and dedication brought about such a large settlement. Today’s awardees exemplify what it truly means to be a public servant and we are proud of their extraordinary service.”

The civil settlement with JPMorgan Chase is the largest recovery ever in a case handled by the Eastern District of California’s U.S. Attorney’s Office. The settlement resulted in part from an investigation that determined that JPMorgan sold billions of dollars of residential mortgage-backed securities (RMBS) that were backed by pools of mortgage loans that contained loans that did not comply with the loan originators’ underwriting guidelines, were secured by properties with inflated appraisals, were supported by inaccurate loan-to-value or debt-to-income ratios, or were originated in violation of federal and state laws and regulations, while misrepresenting to investors the quality of the loans in the pools and the risk of loss.

FRESNO, Calif. — Two Central Valley men are now in federal custody after a Fresno grand jury returned a two-count indictment charging them with armed bank robbery and brandishing a firearm during a crime of violence, United States Attorney Benjamin B. Wagner announced.

Juan Carlos Reyes, 24, of Tracy, and Jose Valadez Jr., 33, of Patterson, were indicted on September 18, 2014. Valadez was arrested on the day of the robbery and has been in custody since then on a state charge, which was dismissed Friday. Reyes was arrested on a federal warrant on October 11, 2014, after he was detained in Manteca by local law enforcement on suspicion of an unrelated offense.

According to the indictment, on June 19, 2014, Reyes and Valadez robbed the Wells Fargo Bank at 1035 Sperry Avenue in Patterson. Both of the men were armed, one with a handgun and the other with a sawed-off shotgun.

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

If convicted, each defendant faces a maximum statutory penalty for armed bank robbery of 25 years in prison and a $250,000 fine. The mandatory minimum statutory penalty for brandishing a sawed-off shotgun during a crime of violence is 10 years in prison with a maximum of life in prison. The mandatory minimum statutory penalty for brandishing a handgun during a crime of violence is seven years in prison with a maximum of life in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

SACRAMENTO, Calif. —Kirit D. Patel, 71, of Tracy, pleaded guilty today to four counts of mail fraud and wire fraud, United States Attorney Benjamin B. Wagner announced.

According to court documents, Patel was the owner and president of Broadway Global Master, a company that purported to be a debt collection company. From 2010 to 2012, callers operating from outside the United States placed more than two million phone calls to consumers in which they impersonated law enforcement officers and threatened to arrest the consumers if they did not provide immediate payment for online payday loans that the callers claimed were delinquent. In most cases, the consumers did not owe delinquent loans and the callers did not have the authority to collect the debts from those who did owe any balances on payday loans. Broadway Global Master processed consumers’ payments when they eventually relented and paid the non-existent debts to avoid the continued threat of arrest. From 2010 to 2012, Patel’s company received more than $5 million in payments from consumers, most of which was immediately transferred out of the country.

This case is the product of an investigation by the United States Secret Service. Assistant United States Attorney Matthew G. Morris is prosecuting the criminal case. In April 2012, the Federal Trade Commission filed a civil lawsuit against Patel and his two companies (2:12-cv-855-JAM) alleging violations of the Federal Trade Commission Act and the Fair Debt Collection Practices Act.

Patel is scheduled to be sentenced by Judge John A. Mendez on February 10, 2015. Patel faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Three men entered guilty pleas to drug-related charges arising out of two different cases, United States Attorney Benjamin B. Wagner announced. In the first case, two Southern California residents pleaded guilty today to use of an interstate facility to aid racketeering, and in the second case, a Bakersfield resident pleaded guilty today to conspiring to distribute and possess with intent to distribute methamphetamine.

Southern California Men Plead Guilty to Using a Cellphone to Aid Racketeering
According to court documents, Luis Alfonso Mendivil, 22, of Riverside, and Jonathen Leyva, 27, of Rialto, admitted that they conspired with others to distribute approximately 3.5 kilograms of methamphetamine. From September 1, 2013, to October 22, 2013, they used a cellphone to carry on an unlawful methamphetamine distribution operation in Bakersfield.

This case is the product of an investigation by the Drug Enforcement Administration and the Kern County Sheriff’s Department.

Both men are scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on December 22, 2014. Mendivil and Levya face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Bakersfield Man Pleads Guilty to Methamphetamine Distribution Conspiracy
According to court documents, Juan Angel Lopez, 32, of Bakersfield, admitted that from March 1, 2014, to July 10, 2014, he knowingly and intentionally conspired with others to distribute methamphetamine in Bakersfield. On April 18, 2013, a Kern County Sheriff’s deputy stopped Lopez’s vehicle and, hidden under the center console, found two firearms, a distribution amount of methamphetamine in a clear plastic bag, and $844 in cash. Also found in the vehicle were four cellphones. Lopez admitted that he knowingly possessed the 74.31 grams of methamphetamine seized from his vehicle and also acknowledged that he possessed the two firearms, which he was prohibited from possessing since he was a previously convicted felon.

This case is the product of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation that is composed of the Drug Enforcement Administration, the Kern County Sheriff’s Office, the Bakersfield Police Department, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Southern Tri-County High Intensity Drug Trafficking Area Task Force.

Lopez is scheduled to be sentenced by Judge O'Neill on December 22, 2014. Lopez faces 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.

Assistant United States Attorney Brian Delaney is prosecuting both cases.

FRESNO, Calif. — Nicholas Moser, 25, was sentenced today four years and four months in prison by United States District Judge Lawrence J. O’Neill for involuntary manslaughter and driving under the influence of alcohol, United States Attorney Benjamin B. Wagner announced.

According to court documents, Moser was intoxicated when he lost control and rolled his truck near Cedar Grove, in the Kings Canyon National Park. The incident occurred during the early morning hours of Saturday, August 31, 2013, the first day of the Labor Day weekend. Three of Moser’s passengers, who were sitting in the rear of his truck, were ejected, causing the death of Thomas Wefald and serious injuries to the other two. Another passenger in the cab was also injured, as was Moser.

Moser and others drank alcohol and smoked marijuana before Moser drove the group several miles from Cedar Grove to Muir Rock, located at the end of Highway 180, where they remained for about a half an hour. The accident occurred shortly after Moser began the return trip to Cedar Grove.

This case was the product of an investigation by the National Park Service. Assistant United States Attorney Michael Frye prosecuted the case.

FRESNO, Calif. — Kimberly Brown-English, 52, of Fresno, was arrested today after a grand jury indicted her last Thursday for filing fraudulent tax returns while she was an employee of the IRS and for making an opportunity for others to file false tax returns, United States Attorney Benjamin B. Wagner announced. Brown-English is scheduled to be arraigned today at 1:30 p.m. before U.S. Magistrate Judge Gary S. Austin in Fresno.

According to court documents, Brown-English filed returns with claims for false deductions and credits, such as dependents, the child tax credit, and the head of household status. The false returns allowed Brown-English and other tax payers to obtain undue tax refunds or improperly reduce their tax liabilities.

This case is the product of an investigation by the Treasury Inspector General for Tax Administration and the Tax Division of the Department of Justice. Assistant United States Attorney Patrick R. Delahunty is prosecuting the case.

If convicted, Brown-English faces a maximum statutory penalty of five years in prison, a $10,000 fine, and dismissal from office. Any sentence, however, would be determined at the discretion of the court after consideration of the Federal Sentencing Guidelines, which take into account a number of variables and applicable statutory sentencing factors.

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

FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Anthony Murua, 36, of Fresno, to six years and five months in prison for being a convicted felon in possession of a firearm, United States Attorney Benjamin B. Wagner announced.

According to court documents, a report was filed with the Fresno Police Department alleging that Murua was making harassing telephone calls and sending threatening text messages, including a picture of a gun. During a search of Murua’s home, a Jimenez Arms 9 mm handgun and ammunition were found in his bedroom. Murua’s prior felony convictions include domestic abuse, assault and robbery.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fresno Police Department. Assistant United States Attorney Melanie L. Alsworth prosecuted the case.

SACRAMENTO, Calif. — The last of four methamphetamine traffickers, Jose Angel Martinez Chairez, 39, was sentenced today to 10 years in prison, United States Attorney Benjamin B. Wagner announced.

On July 29, 2014, Angel Martinez Diaz, 27, was sentenced to 10 years in prison and Jose Ramirez Verduzco, 29, was sentenced to 13 years in prison. On August 12, 2014, Jose Maria Villareal, 26, was sentenced to 11 years and three months in prison. All four defendants formerly resided in San Jose.

According to court documents, on July 10, 2013, the four defendants travelled in two vehicles from San Jose to a shopping center just off Interstate Highway 5 in Anderson, to sell a large quantity of crystal methamphetamine to an individual who purported to be interested in purchasing the drugs. In reality, that person was a confidential informant working for law enforcement agents. Under surveillance by the agents, the informant met with Martinez Diaz, Martinez Chairez, and Villareal who showed him a one-kilogram package of crystal methamphetamine represented to be a sample of the total 14 kilograms brought to sell to the CI. After a short discussion, the remaining drugs were brought up to the site in a second vehicle with a hidden compartment. Law enforcement agents watched as the defendants showed the remaining methamphetamine, after which the agents closed in and arrested the four defendants.

A total of 13.868 kilograms (30.5 pounds) of 99 percent pure crystal methamphetamine was seized. This represents approximately 2,760 dosage units according to documents filed in the case. That amount of drugs was three times the top level of the U.S. Sentencing Guidelines Drug Table, even taking into account the recent amendments passed by the U.S. Sentencing Commission which increased the amount of drugs needed to reach this highest level.

According to U.S. Attorney Benjamin Wagner, “Methamphetamine is, by far, the largest drug problem faced in California in terms of the number of people abusing it and the detrimental impact it has on society. A 2013 study commissioned by the Office of National Drug Control Policy titled “Adam II” showed that slightly over 50 percent of the recently arrested inmates at the Sacramento County Jail tested positive for methamphetamine. That was an increase of 10 percent over the prior year. Additionally, the increase in both the quantity and quality of the methamphetamine seized in the last three years in the drug cases prosecuted by this office shows a marked increase in the availability of high purity crystal methamphetamine, which is often traced back to drug trafficking organizations in Mexico.”

This case was the product of an investigation by the U.S. Drug Enforcement Administration –Redding Resident Office and the Shasta County Interagency Narcotics Task Force. Assistant United States Attorney Richard Bender prosecuted the case.

SACRAMENTO, Calif. — Jason Carlsen, 41, of Citrus Heights, was sentenced today by United States District Judge John A. Mendez to five years in prison for possession of child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, in August 2013, Carlsen was found with hundreds of images and videos showing child pornography on his cellphone. Carlsen used file sharing programs to send and receive child pornography with others, and in May 2013, he sent a series of text messages to a recipient in Kentucky that included sexually explicit photographs of a juvenile believed to be approximately 13 years old. Carlsen has been in custody since his arrest in March 2014, and on May 13, 2014, he pleaded guilty to the possession of child pornography charge.

This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Sheriff’s Department. Assistant United States Attorneys Kyle Reardon and Christopher S. Hales prosecuted the case.

FRESNO, Calif. — Baltazar Rodriguez, 45, of Terra Bella, pleaded guilty today to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown on property where he resided, U.S. Attorney Benjamin B. Wagner announced.

In pleading guilty, Rodriguez also acknowledged that he possessed a firearm in connection with the conspiracy. According to court records, law enforcement officers seized over 1,000 marijuana plants from 39.6 acres of farm land in Terra Bella where Baltazar Rodriguez resided with his family. Inside the Rodriguez residence, officers found a loaded, unregistered revolver in his bedroom, a digital scale commonly used to weigh controlled substances, and documents showing wire transfers of cash to Mexico. Rodriguez’s guilty plea follows the convictions and sentencing of the other five defendants.

Baltazar Rodriguez is scheduled for sentencing on December 15, 2014. He faces up to 20 years in prison and a $1 million fine. The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Drug Enforcement Administration, the Sheriff’s offices of Tulare, Kern, Ventura, and San Luis Obispo Counties, and the Escondido Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.

FRESNO, Calif. — Rene Garcia, 47, of Sanger, pleaded guilty today to stealing government property, United States Attorney Benjamin B. Wagner announced. Garcia has been detained as a flight risk in federal custody since his arrest on August 18, 2014.

According to his plea agreement, on numerous occasions between September 2012 and March 2013, Garcia entered the parking lot of the U.S. Post Office in Selma and stole vehicle batteries out of the U.S. Mail trucks parked there.  In all, Garcia stole a total of 57 vehicle batteries, which he subsequently sold. During at least one of the battery thefts, Garcia wore a mask to conceal his identity and used wire cutters to gain access through a fence surrounding the mail truck parking lot. The U.S. Postal Service lost more than $9,700 as a result of Garcia’s thefts.

This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Christopher Baker is prosecuting the case.

Garcia is scheduled to be sentenced by U.S. District Judge Lawrence J. O’Neill on December 15, 2014. Garcia faces a maximum statutory penalty of 10 years in prison, a $250,000 fine, or both. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — An employee of the Employment Development Department and a co-defendant for a scheme to defraud the EDD Disability Insurance Program, United States Attorney Benjamin B. Wagner announced.

EDD employee Simeon Shawnise Gregory, 35, of Moreno Valley, was sentenced to two years and six months in prison, and Terrance Rychan Smalls, 32, of Moreno Valley, was sentenced to six months in prison and six months home confinement. Earlier this year, co-defendants Sarah Elizabeth Trout, 35, of Riverside, was sentenced to five months in prison and five months of home detention, and Theresa Helena Campbell, 37, of Riverside, was sentenced to 18 months in prison.

According to court documents, Gregory used her position as an EDD Disability Insurance Program Representative to improperly process and manipulate the claims of Trout, Campbell, Smalls, and others. In return for fraudulently extending her disability claim, Trout paid Gregory up to half of her disability benefits. For Campbell and Smalls, Gregory caused EDD to issue specific payments, inactivated warning flags, and forged doctor’s certificates regarding the claimed disability. For Campbell, Gregory found an innocent individual with Campbell’s same name and used that individual’s legitimate wages to get Campbell fraudulent benefits. Gregory’s actions disabled the checks and balances that allow EDD to discover fraudulent claims. As a result of this scheme, the defendants defrauded the State of California of more than $360,000.

“Today’s sentencing highlights EDD’s continuing efforts to actively pursue and prosecute fraud against the California Disability Insurance program. The defendant in this case violated our public trust by participating in a complex scheme to defraud a vital program that serves as a lifeline for millions of disabled workers. It’s intolerable,” said Patrick W. Henning Jr., director of the California Employment Development Department (EDD). “Our Investigation Division is committed to working with our law enforcement partners to safeguard this and other EDD programs. Though this is a rare transgression not at all reflective of our dedicated staff, we take aggressive action whenever and wherever fraud is found.”

This case was the product of an investigation by the Employment Development Department, Investigation Division. Assistant United States Attorney Jared C. Dolan prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned three indictments today for charges of trafficking cocaine and heroin and cultivating marijuana in a national forest, United States Attorney Benjamin B. Wagner announced. 

99 Kilograms (218 lbs) of Cocaine Seized
In the first indictment, Todd Andrew Ayster, 49, of Long Beach, was charged with possession of cocaine with intent to distribute. According to court documents, on August 31, 2014, Aster was arrested after a CHP officer conducted a traffic stop in Stockton. A strong odor of axle grease was coming from the vehicle, and the officer’s K9 alerted to narcotics at two locations on the exterior of the vehicle. A subsequent search of the vehicle and attached camper led to the recovery of 99 kilograms of cocaine. This case is the product of an investigation by the California Highway Patrol and the Drug Enforcement Administration.

Heroin, Cocaine, and Firearms Seized
In the second indictment, Cedric Sewell, 46, of Hayward, was charged with possession with intent to distribute heroin, possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking crime, and being a felon in possession of a firearm. According to court documents, on March 5, 2014, law enforcement officers searched Sewell’s residence in Stockton and seized over five kilograms of heroin, 500 grams of cocaine, several firearms (including an AR-15 assault rifle), approximately $67,000 in cash, a money counter, and a cache of ammunition. This case is the product of an investigation by the Alameda County Narcotics Task Force and the Drug Enforcement Administration.

Two Large Marijuana Cultivation Sites Eradicated from Lassen Forest
In the third indictment, Tiburcio Olmos Munoz, Adalid Rosales Lopez, and Venustiano Gonzalez-Jauregui, were charged with conspiracy to cultivate marijuana plants in the Lassen National Forest. According to court documents, on August 25, 2014, law enforcement agents served a search warrant at a large cultivation site in the Lassen National Forest. Gonzalez-Jauregui was there, and 6,769 marijuana plants were eradicated from the site.  That same day, agents discovered a nearby site but due to exposure to highly toxic pesticides used in the first grow site, were unable to explore the second site that day.  On September 4, 2014, law enforcement agents returned to the second site and arrested Munoz and Lopez. This case is the product of an investigation by the United States Forest Service, the Shasta County Sheriff’s Office, and the California Department of Fish and Wildlife.

If convicted, Ayster, Munoz, Lopez and Gonzalez-Jauregui face a maximum statutory penalty of life in prison and a $10 million fine. If convicted, Sewell faces maximum sentences of life in prison and fines up to $20 million for the drug possession charges and a maximum statutory penalty of 10 years in prison and a $250,000 fine for being a felon in possession of a firearm.  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.

Assistant United States Attorney Olusere Olowoyeye is prosecuting all three cases. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — United States Attorney Benjamin B. Wagner announced today that Regina L. Perea, 34, of Stockton, was sentenced today by U.S. District Judge Morrison C. England Jr. to six years in prison for three counts of aggravated identification theft.

According to court documents, Perea and her husband, Rudy A. Trujillo, 35, also of Stockton, possessed hundreds of pieces of stolen U.S. mail, along with hundreds of stolen checks, credit cards and identification documents at their Stockton residence. During a search of their residence, law enforcement recovered the stolen mail and found evidence indicating that the defendants were altering checks, and manufacturing credit cards. When Trujillo and Perea were arrested in San Jose, they were driving a stolen vehicle with stolen license plates and were again in possession of a large quantity of stolen U.S. mail, checks, credit cards, and identification documents. Perea had assumed the identity of at least two additional female victims while she and Trujillo were on the run from law enforcement.

This case is the product of an investigation by the United States Postal Inspection Service and the San Joaquin County Sheriff's Office with assistance from the Stockton Police Department, the San Jose Police Department, the Placer County Sheriff's Office, and the Delta Regional Auto Theft Task Force. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.

San Francisco Division Inspector in Charge Rafael Nunez of the United States Postal Inspection Service stated: “We are working closely with the U.S. Attorney's Office and our partners in law enforcement to arrest and prosecute all those responsible for stealing U.S. Mail and using the contents of stolen U.S. Mail in furtherance of fraud and identity theft crimes."

On May 15, 2014, Perea and Trujillo pleaded guilty to three counts of aggravated identity theft. Trujillo, who is in federal custody, is scheduled to be sentenced on November 6, 2014. He faces a mandatory minimum sentence of two years in prison for each count of aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Frances Marie Charles, 35, of Stockton, was sentenced today by United States District Judge Troy L. Nunley to five years and five months in prison for aggravated identity theft and mail fraud, United States Attorney Benjamin B. Wagner announced.

According to court documents, between June 2012 and December 2013, Charles participated in a scheme to obtain replacement American Express credit cards in the names and account numbers of others. In total, the scheme yielded over 215 credit cards in the names of at least 172 different people. Charles would make calls to American Express and use stolen identification and financial information of victims to cause the replacement cards to be sent to Stockton. Charles and others would then use the cards to make various fraudulent charges and purchases. The total value of the transactions attempted with the cards was well in excess of $400,000.

In sentencing Charles, Judge Nunley noted how much identity theft disrupts the lives of victims, and how much time victims often need to spend addressing the effects of identity theft in their lives.

This case was the product of an investigation by the United States Secret Service. Assistant United States Attorney Christopher S. Hales prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned a three-count indictment today against Brent Douglas Cole, 61, of Nevada County, charging him with assault on a federal officer with a deadly weapon which inflicted bodily injury, assault on a person assisting a federal officer with a deadly weapon which inflicted bodily injury, and discharge of a firearm during and in relation to a crime of violence, United States Attorney Benjamin B. Wagner announced.

According to court documents, on June 14, 2014, a BLM ranger stopped Cole after he observed Cole driving his truck on a closed dirt road on BLM land near the South Yuba River campground. The ranger warned Cole not to drive on the road again and allowed him to leave without issuing him a citation. The ranger continued up the dirt road and discovered a makeshift campsite with two motorcycles — one of which had been reported stolen, and one had expired tags. The ranger requested the CHP’s help to impound the motorcycles. While he and a CHP officer were preparing to move the two motorcycles, Cole arrived at the campsite armed, and an exchange of gunfire took place. Cole wounded the BLM ranger in the left shoulder and the CHP officer in the right, lower leg. Cole was struck several times by law enforcement. Cole, the BLM ranger, and the CHP officer received medical attention, and all will survive their wounds.

This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Land Management, the Nevada County Sheriff’s Office, the Nevada County District Attorney’s Office, and the California Highway Patrol. Assistant United States Attorneys Michael D. McCoy and Heiko Coppola are prosecuting the case.

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

SACRAMENTO, Calif. — John Michael Dial, 58, of Skaneateles, New York, was sentenced today by United States District Judge Morrison C. England Jr. to two years in prison for aggravated identity theft, United States Attorney Benjamin B. Wagner announced.

According to court documents, Dial used the names of actual persons to commit violations of federal law such as false statements to the FAA and forgery of a U.S. passport.

According to court documents:

• From December 16, 2009, to August 4, 2010, Dial was hired as a television news helicopter pilot and operated news helicopters in the Bay Area without a pilot’s license.
• Dial worked for an air ambulance service in Susanville and provided numerous false identification documents to his employer. From July 3, 2011, to November 7, 2011, he operated a helicopter approximately 63 times without having a valid pilot certificate.
• On March 15, 2012, Dial was hired to work as a television news helicopter pilot in Sacramento. Dial used his real name but the FAA certificates he provided were fraudulent. He flew two times without having a valid pilot certificate.
• Dial used the identity of a former co-worker to gain employment with an air ambulance service in New York, and he created a fraudulent United States passport using that person’s identity.

Dial’s identity theft became clear when he was stopped in Idaho for a traffic violation and produced falsified ID from Vermont. Dial pleaded guilty on July 31, 2014.

“The sentencing today of John Michael Dial for aggravated identity theft is a clear signal that the safety of the Nation’s air transportation system remains a high priority for both the Office of Inspector General and the Department of Transportation,” said William Swallow, DOT OIG regional Special Agent-In-Charge. “We will continue to work with our prosecutorial and law enforcement colleagues to prevent and detect violations of federal laws designed to ensure the safety of the public and the Nation’s transportation systems, and punish those who would seek to compromise that safety.”

“Dial stole identities, creating and forging numerous counterfeit documents to conceal his identity and criminal history as he moved from state to state to outrun his past. His crime presented a threat to public safety as his true identity and criminal history precluded him from obtaining access to aircraft and the certification necessary for employment as a commercial helicopter pilot,” said Special Agent in Charge Monica Miller of the FBI’s Sacramento field office. “Despite his efforts to evade law enforcement, Dial was pursued across numerous state lines and was ultimately apprehended in Skaneateles, New York.”

This case was the product of an investigation by the U.S. Department of Transportation, Office of Inspector General, the Federal Bureau of Investigation, and the United States Secret Service with the assistance of the Cascade, Idaho, and McCall, Idaho Police Departments. Assistant United States Attorneys Kyle Reardon and Andre Espinosa prosecuted the case.

FRESNO, Calif. — Dr. Terrill Eugene Brown, 61, of Visalia, was sentenced today by United States District Judge Lawrence J. O'Neill to four years and nine months in prison for causing the distribution and dispensing of oxycodone and structuring financial transactions to evade a reporting requirement, United States Attorney Benjamin B. Wagner and Fresno County District Attorney Elizabeth Egan announced. In addition, Brown was ordered to forfeit more than $182,000 and three BMW sedans that were involved in or obtained as a result of his criminal activity.

According to court documents, Brown, a medical doctor formerly licensed by the State of California, prescribed large quantities of highly addictive prescription drugs, including oxycodone and hydrocodone, without medical necessity. Brown prescribed to customers who did not have a legitimate medical need and out of the usual course of his professional practice. Brown deposited the cash earned from these prescriptions into different personal bank accounts in a manner designed to avoid currency transaction reporting requirements that would have alerted the Treasury Department to the large cash transactions.

Oxycodone, also known as “oxy,” is a narcotic analgesic or painkiller and is classified as a Schedule II controlled substance. Demand for oxycodone-based prescription pain medication has grown to epidemic proportions in the United States, and dealers profit by selling such medication on the street. Oxycodone-based Schedule II drugs have a high potential for abuse, and users will often crush and snort the pills or dissolve and inject them to get an immediate high. The abuse can lead to addiction, overdose, and sometimes death.

“Deaths from prescription drug abuse have been increasing dramatically in recent years,” said U.S. Attorney Wagner. “Studies have shown that a significant portion of chronic prescription drug abusers obtain their drugs from doctors. A few doctors like Dr. Brown, who deliberately over-prescribe for profit, are fueling a deadly epidemic.”

This case was the product of an investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Medical Board of California, California Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Kathleen A. Servatius and Laurel J. Montoya, and Fresno County Deputy District Attorney Nathan Lambert who was sworn in as a Special Assistant U.S. Attorney for the case.

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

This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.

In a related case, on April 11, 2013, a federal grand jury charged 13 defendants for a scheme where they obtained prescriptions for oxycodone, hydrocodone, and medical marijuana cards from Dr. Brown in Modesto. They recruited other individuals to obtain prescriptions and marijuana cards from the doctor and paid them for the prescriptions and marijuana cards. After obtaining the oxycodone and hydrocodone pills, the defendants shipped the pills to other states.

Eight defendants in that case pleaded guilty and have been sentenced as follows: David Ruem, of Tacoma, Wash.; sentenced to 10 years and one month in prison
Phary Chim, of Kent, Wash.; sentenced to four years and three months in prison; Sdey Chim, of Modesto; sentenced to three years and 10 months in prison; Chanrath Yath, of Modesto; sentenced to three years and four months in prison; Phally Thach, of Modesto; sentenced to two and a half years in prison; Raeb Chou, of Modesto; sentenced to two years in prison; Cindy Doeum, of Kent, Wash.; sentenced to three years of probation; and
Chantha Chim, of Murietta; sentenced to three years of probation.

Another defendant has pleaded guilty and is awaiting sentencing. The charges against the remaining four defendants are pending and are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Robert Hanrahan, aka Bubba, 41, of Salinas, was sentenced today by United States District Judge William B. Shubb to 31 years and three months in prison for conspiracy to distribute methamphetamine and cocaine, United States Attorney Benjamin B. Wagner announced.

According to facts admitted during Hanrahan’s guilty plea, beginning in 2003, he acted as a leader of the Nuestra Familia, a violent prison gang based within the California and Federal prison systems whose members exert control over street-level Norteño gang members engaged in drug trafficking and violent crime. Hanrahan oversaw the establishment of Street Regiments in San Francisco and the surrounding Bay Area counties. Hanrahan was the primary supplier of methamphetamine and cocaine to the San Francisco regiment between 2004 and 2005. During the drug conspiracy, in August 2004, Salinas police served a state search warrant for controlled substances at a Salinas residence. Inside the residence, officers found Hanrahan and two pounds of methamphetamine, a pound of cocaine, drug ledgers, two digital scales, empty baggies, a stolen .40-caliber handgun, a 12‑gauge shotgun, and a rifle.

According to the plea agreement, in January 2006, while Hanrahan’s Salinas drug case was pending, he fled to Mexico. The NF funneled money obtained through drug trafficking to him for living expenses in Mexico, which included high phone bills. Western Union receipts traced the flow of NF drug money from Northern California to Hanrahan in Mexico. Ultimately, Hanrahan was apprehended at the U.S.-Mexico border on November 12, 2006.

This case is the product of an investigation by the FBI’s Stockton Violent Crime Task Force, the San Joaquin County Metropolitan Narcotics Task Force (METRO), the Stockton Police Department, the Salinas Police Department, the Watsonville Police Department, and the Monterey County Sheriff’s Office, and the California Department of Corrections and Rehabilitation into the activities of the Nuestra Familia. Assistant United States Attorneys Jason Hitt and William S. Wong prosecuted the case.

This case and a related indictment have resulted in a number of significant sentences:

On April 21, 2010, Manuel Gauna was sentenced to more than 21 years in prison.
On December 13, 2010, Richard Mendoza was sentenced to 17 years in prison.
On February 22, 2011, Bismark Ocampo was sentenced to 28 years in prison.

On May 25, 2011, the trial defendants were sentenced to the following: Larry Amaro was sentenced to 40 years in prison.
Ernest Killinger was sentenced to 362 years in prison.
Gerardo Mora was sentenced to more than 33 years in prison.
Jason Stewart-Hanson was sentenced to 25 years in prison.
On July 25, 2011, Gabriel Caracheo was sentenced to 25 years in prison.
On July 27, 2011, David Ramirez was sentenced to 15 years in prison.
On September 26, 2011, Fernando Villalpando was sentenced to 20 years in prison.
On October 17, 2011, Faustino Gonzalez was sentenced to more than 15 years.
On November 28, 2011, Oscar Campos-Padilla was sentenced to 14 years in prison.
On September 24, 2012, Rebecca Guzman was sentenced to 14 years in prison.
On January 22, 2013, Juan Gallegos, aka Wino, was sentenced to 28 years in prison.
On December 23, 2013, Carolyn Huerta, was sentenced to 10 years in prison.

FRESNO, Calif. — Oscar Rodriguez, 31, of Sanger, was sentenced today by United States District Judge Lawrence J. O'Neill to four years and one month in prison, United States Attorney Benjamin B. Wagner announced.

According to court documents, on January 31, 2013, Transportation Security Agency officers stopped Rodriguez at the Modesto Airport after his baggage tested positive for the presence of a prohibited substance. As the result of a pat-down search, officers discovered two zip-lock baggies containing methamphetamine. The combined weight of the packaging materials and methamphetamine was 2.68 pounds. Rodriguez was carrying boarding passes for flights from Modesto to San Francisco and from San Francisco to Maui, Hawaii.

This case was the product of an investigation by the Drug Enforcement Administration, the Transportation Security Administration, and the Modesto Police Department. Assistant United States Attorney Michael Frye prosecuted the case.

FRESNO, Calif. — David Walter Fee, 22, of Fresno, was sentenced today to 18 months in prison, to be followed by two years of supervised release, for aiming a laser pointer at a California Highway Patrol airplane, announced U.S. Attorney Benjamin B. Wagner.

According to court documents, the CHP airplane, Air 43, was struck up to 50 times by a powerful green laser pointer. As a result, the pilot suffered temporary blindness and Air 43 was forced to break away from a burglary in progress at a Fresno middle school. The CHP pilot reported that he gets struck by lasers almost every night and this incident was “the worst.”

The case was the product of an investigation by the FBI’s Fresno Office, the California Highway Patrol, and the Fresno Police Department. Assistant U.S. Attorneys Karen A. Escobar and Michael G. Tierney prosecuted this case.

“The public should be outraged by this reckless behavior that jeopardizes both air crews and the public,” said Supervisory Special Agent Jacqueline Neumann of the Sacramento FBI’s Fresno resident agency. “The public has the power to stop this activity. If anyone witnesses aircraft laser incidents, they should report it by calling 911 immediately. The public is also encouraged to have conversations with friends and family to improve understanding of the risks and discourage reckless usage of hand-held laser devices. The threat to aircraft safety is real and the penalties for this activity can be substantial.”

According to the latest statistics from the FBI, in 2014, the FAA has received 104 reports of laser incidents involving aircraft from the Eastern District of California. Fresno leads in the number of reported incidents in our district followed by Modesto, Bakersfield, and Sacramento, in that order.

Thousands of laser attacks go unreported every year. If you have information about a laser incident, or see someone pointing a laser at an aircraft, call your local FBI field office or dial 911.

SACRAMENTO, Calif. — Four defendants involved in a scheme that victimized distressed homeowners were sentenced today, United States Attorney Benjamin B. Wagner announced.

United States District Judge William B. Shubb sentenced Jewel Hinkles, aka Cydney Sanchez, 64, of Los Angeles, to five years in prison; Jesse Wheeler, 37, of Roseville, to three years in prison, Cynthia Corn, 61, of Oakland, to two and a half years in prison and Brent Medearis, 48, of Modesto, to one year and 10 months in prison.

Michael P. Stephens, Acting Inspector General, Federal Housing Finance Agency Office of Inspector General stated: “It is particularly vile for fraudsters to target and take advantage of individuals who are scared, vulnerable and simply trying to protect their families and save their home. Jewel Hinkles, Jesse Wheeler, Cynthia Corn, and Brent Medearis will now have time to reflect on their actions. We will continue to pursue any individual who perpetrates such fraud, and we are proud to have worked with our law enforcement partners on this case.”

“This scheme preyed upon desperate, financially distressed homeowners who were at imminent risk of losing their homes to foreclosure,” said Supervisory Special Agent Todd Irinaga of the Sacramento FBI’s Modesto resident agency. “This demonstrates the success of a multi-agency investigation, and we are thankful for the collaborative efforts of our San Joaquin Valley Mortgage Fraud Task Force partners. The FBI will always work with its law enforcement partners to identify and investigate individuals who flout laws and exploit vulnerable citizens for personal gain.”

According to court documents, Hinkles was the founder and general manager of Horizon Property Holdings LLC, in Beverly Hills. From 2008 through 2010, Hinkles offered a service called “Save My Home” or “Homesaver” that promised to rescue financially distressed homeowners from foreclosure and reduce the principal on homeowners’ mortgages. Horizon offered its program directly to clients and also through several layers of “affiliates,” who promoted and sold the program to clients, mostly in Northern California.

The defendants told homeowners they would save their residences from foreclosure by arranging for investors to purchase their existing mortgage at a discounted price, thereby reducing the homeowner’s principal and monthly mortgage payment. To prevent foreclosure, the defendants filed fraudulent deeds transferring an interest in the homeowner’s property to a fictitious entity called Pacifica Group 49/II. In many instances, the defendants also filed fraudulent petitions in bankruptcy court, often naming both the homeowner and Pacifica Group 49/II as the debtor. The purpose of these petitions was to invoke the automatic provisions of federal bankruptcy law that bring to an immediate halt any foreclosure actions against a debtor’s property.

Because the fraudulent deeds and bankruptcy petitions delayed foreclosure proceedings, the defendants were able to pretend that they were providing a legitimate service and continue to collect fees from defrauded homeowners. To enroll in the Save My Home program, clients were required to pay an initial payment of approximately $3,500 and monthly fees up to $1,500. The Homesaver program required clients to pay an initial payment ranging from $1,750 to $6,500 and monthly fees up to $850. In total, the scheme collected at least $4.9 million from more than 1,000 homeowners, including homeowners whose mortgages were owned by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). However, according to court documents, the defendants never arranged for the purchase of a single mortgage from any of the clients’ lenders and never negotiated a single mortgage principal reduction for any of Horizon’s clients.

This case was the product of an investigation by the Federal Housing Finance Agency, Office of Inspector General; the United States Postal Inspection Service; the Federal Bureau of Investigation; and the Stanislaus County District Attorney’s Office. Assistant United States Attorneys Lee S. Bickley and Matthew D. Segal prosecuted the case.

FRESNO, Calif. — Martin Rojas-Cuamba (Rojas), 46, of Escondido, pleaded guilty today to bulk cash smuggling in Tulare, Kern, and San Diego Counties, U.S. Attorney Benjamin B. Wagner announced.

According to the plea agreement, Rojas smuggled $88,950 in cash from the United States to Mexico in order to evade the currency transaction reporting requirement. According to court documents, Rojas was connected to several marijuana cultivation operations on agricultural lands in Terra Bella and Bakersfield from which he profited. During a search of his residence in Escondido, law enforcement officers seized $53,750 in cash, which Rojas has agreed to forfeit.

Rojas is scheduled for sentencing on December 15, 2014, before U.S. District Judge Lawrence J. O’Neill. Rojas faces a maximum prison term of five years and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by the U.S. Forest Service, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Drug Enforcement Administration, the Sheriff’s offices of Tulare, Kern, Ventura, and San Luis Obispo Counties, and the Escondido Police Department. Assistant United States Attorney Karen Escobar is prosecuting the case.

FRESNO, Calif. — Enrique Reynosa, 37, was sentenced today to four years and nine months in prison, to be followed by three years of supervised release, for possessing methamphetamine and cocaine with intent to distribute, United States Attorney Benjamin B. Wagner announced. Senior U.S. District Judge Anthony W. Ishii also ordered the forfeiture of the Silverado pickup truck that Reynosa used to transport the drugs and $1,510 in cash.

According to court documents, on January 15, 2013, a CHP officer stopped Reynosa on Highway 99, south of State Route 119, for a traffic violation. The officer asked for and received verbal and written consent from Reynosa to search the vehicle. During the search, the officer found six pounds of methamphetamine, eight pounds of cocaine inside a speaker box. A drug detecting canine alerted to Reynosa’s right front pocket and led to the discovery of the cash.

This case was the product of an investigation by the U.S. Drug Enforcement Administration and California Highway Patrol. Assistant United States Attorney Karen Escobar prosecuted the case.

FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Julie Dianne Farmer, 46, of Bakersfield, today to three years in prison, to be followed by five years of supervised release, for her involvement in an extensive mortgage fraud scheme that ran from January 2004 to September 2007, United States Attorney Benjamin B. Wagner announced. Judge O’Neill ordered her to pay $2,914,331 in restitution and to forfeit $15 million. Judge O’Neill also found that Farmer obstructed justice by testifying falsely at trial, and that she supervised other participants in the conspiracy.

On April 22, 2014, a federal jury found Farmer guilty of conspiracy to commit mail fraud, wire fraud and bank fraud, and two counts each of mail fraud and wire fraud.

“Today’s sentencing is the result of a culture of greed and opportunism that saturated a Bakersfield real estate company,” said U.S. Attorney Wagner. “The owners of the company have been held accountable with lengthy prison sentences, but they could not have accomplished their crimes without the knowing and willing help of many within their organization. The fraud committed at Crisp & Cole and by other professionals prosecuted in our district made a bad financial climate even worse for our communities. The U.S. Attorney’s Office remains committed to uncovering and prosecuting fraud and abuse in all facets of the housing market.”

“As we discovered during the course of a multi-year investigation, Farmer, the chief operations officer of Crisp & Cole, conspired with David Crisp, Carl Cole, and others to intentionally defraud financial institutions of money and property for personal enrichment,” said Supervisory Special Agent Jose Moreno of the Sacramento FBI’s Bakersfield resident agency. “Such crimes are not victimless. The conspirators’ greed ultimately caused irreparable damage to the Bakersfield community that sentences or restitution cannot fully repair.”

According to the evidence at trial, Farmer was Crisp & Cole Real Estate’s (CCRE) chief operations officer and managed CCRE’s business operations and business accounts. Together with co-defendants David Crisp and Carl Cole, Farmer oversaw and managed a conspiracy to defraud residential lenders. They used straw purchasers to acquire properties at inflated prices with funds borrowed from lenders, often using 100 percent financing and based on false and fraudulent loan applications. The conspirators frequently resold the properties from one straw buyer to another, each time at an inflated, higher price in order to extract the purported increased “equity” from the property for their benefit. Ultimately, most of the properties were foreclosed upon after the defendants failed to make the mortgage payments when due.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Kirk Sherriff, Henry Carbajal III, and Christopher Baker are prosecuting the case.

Farmer was the only defendant who took her case to trial. Her co-defendants pleaded guilty for their roles in the scheme, and most have been sentenced. Carl Cole and David Crisp were each sentenced to 17 years and seven months in prison. Caleb Cole was sentenced to five months in prison, and Jennifer Crisp was sentenced to five years’ probation. Jayson Peter Costa was sentenced to six and a half years in prison. Michael Angelo Munoz received a sentence of two years in prison, and Jeriel Salinas received a 19-month sentence. Sneha Mohammadi is scheduled to be sentenced November 14, 2014. Robinson Nguyen has completed his 27-month sentence.

Five related cases were brought in 2009 and 2010 against five defendants who pleaded guilty to charges relating to this scheme. Jerald Allen Teixeira is scheduled to be sentenced on February 9, 2015. The sentences for the other defendants are as follows: Megan Balod – 36 months’ probation; Christopher Lance Stovall – one year in prison; Kevin Patrick Sluga – 20 months in prison; and Leslie Sluga – three years’ probation.

This case was investigated and prosecuted in coordination 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 is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. For more information on the task force, please visit www.StopFraud.gov.

SACRAMENTO, Calif. — Deveron Lyons, 24, of Rodeo, was sentenced today by United States District Judge Troy L. Nunley to 15 months in prison for failing to register as a sex offender, United States Attorney Benjamin B. Wagner announced.

According to court documents, as of June 2007, under the Sex Offender Registration and Notification Act (SORNA), Lyons was required to register as a sex offender in Washington State and to register as a sex offender whenever he moved to a new state. In late 2012, Lyons moved to California, but he did not register as a sex offender with California authorities. On February 1, 2013, Lyons encountered a Napa County Sheriff’s Deputy, who told Lyons to register as a sex offender. Lyons still did not register as a sex offender in California. For a time, he lived in Vallejo, California. More than one year later, on March 12, 2014, Lyons was indicted for failing to register as a sex offender. One week later, Lyons registered as a sex offender with California authorities.

This case was the product of an investigation by the United States Marshals Service. Assistant United States Attorney Christiaan Highsmith prosecuted the case.

SACRAMENTO, Calif. — Nicholas Perry, 37, of Sacramento, was sentenced today by United States District Judge Morrison C. England Jr. to 10 years in prison, to be followed by a lifetime of supervised release, for attempted enticement of a minor, United States Attorney Benjamin B. Wagner announced.

According to court documents, in 2012, an undercover detective with the Sacramento Internet Crimes Against Children (ICAC) Task Force began communicating with Perry and offered to introduce Perry to a minor girl. Perry agreed to meet a fictional father and daughter in order to have sex with the daughter. When Perry arrived at the meeting place, he was arrested.

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 Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant United States Attorney Kyle Reardon 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. — Gene Wayne Harris, 42, of Mammoth Lakes, was sentenced today by United States District Judge Morrison C. England Jr. to 15 years, and eight months in prison, to be followed by a lifetime of supervised release, for attempted enticement of a minor, United States Attorney Benjamin B. Wagner announced.

According to court documents, on March 1, 2013, a woman from Mammoth Lakes received an unsolicited Facebook friend request from Harris. Before accepting the request, she looked up Harris and learned that he was a registered sex offender, having previously been convicted in Inyo County of sexual battery. At law enforcement’s direction, she responded to Harris through Facebook and an Internet-based text messaging service, and told him that she was only 14 years old. Harris acknowledged the statement that she was 14, commenting that her Facebook post says she is older. Harris also told her he could get in trouble if anyone found out they were talking.

Law enforcement assumed control of the woman’s account. During this time, Harris’s communications turned sexual, including requests by Harris for sexually explicit pictures of her. Plans were made for a meeting and on March 8, 2013, Harris checked in to a Mammoth motel and waited for the purported 14-year-old girl to arrive. While waiting, Harris communicated through text with law enforcement (posing as the girl), texting at one point that he could “get in trouble for what I am about to do, but it is worth it.” Law enforcement sent Harris a text while he was at the motel asking him to get something to drink and a candy bar. Harris was arrested while walking back to the motel from a convenience store with the drink and candy bar. Located in the motel room were condoms and alcohol.

At sentencing, Judge England said that the sentence imposed would “serve to protect the public from future conduct” by the defendant, and “be a deterrent for others who engage in this type of conduct.”

This case was the product of an investigation by the Federal Bureau of Investigation, the Mono County District Attorney’s Office, and the Mammoth Lakes Police Department. Assistance was also provided by the Mono County Sheriff’s Department. Assistant United States Attorney Kyle Reardon prosecuted the case.

SACRAMENTO, Calif. — Roxanna Foley, 53, of Bridgeport, was sentenced today by United States District Judge Kimberly J. Mueller to 30 months in prison for embezzlement by a bank employee and ordered to pay $315,000 in restitution, United States Attorney Benjamin B. Wagner announced.

Foley worked at Eastern Sierra Community Bank (ECSB) in Bridgeport. According to the plea agreement, starting in November 2011, bank officials noticed discrepancies with the Bridgeport branch of ESCB. On March 19, 2012, managers from the bank made an unannounced visit to Foley’s branch to investigate a suspicious $90,000 transaction. After a review of the local bank’s records, officials identified $90,000 in misplaced funds, as well as $6,000 missing from Foley’s teller drawer.

During the surprise inspection, Foley admitted to taking over $300,000 from the bank. A later review of the ECSB’s accounts uncovered $322,000 in missing funds, as well as multiple electronic transactions moving money between accounts made by Foley. Official also learned that Foley had been circumventing normal banking procedures at ECSB, including single-handedly taking over all counting and auditing of ECSB accounts when dual-counting procedures were required.

At sentencing, Judge Mueller found that the loss in this case was “significant,” and that Foley “succumbed to the temptation” of having access to such funds. In sentencing Foley, Judge Mueller sought to punish Foley for her conduct and stated that a “period of time in a federal facility will serve as a deterrent” to Foley and others.

This case was the product of an investigation by the Mono County District Attorney’s Office, the Mono County Sheriff’s Office, and the Federal Bureau of Investigation. Assistant United States Attorney Kyle Reardon prosecuted the case.

FRESNO, Calif. — Gaylene Lynette Bolanos, 56, of Fresno, was apprehended Tuesday by the United States Marshals Service in Fresno, United States Attorney Benjamin B. Wagner announced.

Bolanos was indicted by a federal grand jury in September 2013 with seven other defendants for claiming more than $32 million in fraudulent tax refunds. Throughout the court proceedings, Bolanos has filed documents with the court claiming that she does not accept the authority of the United States government.

After her arraignment in October 2013, the court ordered Bolanos released from custody on a $5,000 bond and ordered to report on a regular basis to the Pretrial Services Office. In August 2014, Bolanos failed to report to Pretrial Services. She was ordered to appear for a bail review hearing on August 28, 2014, but failed to appear and did not respond to Pretrial Services’ attempts to contact her. As a result, the court issued a warrant for her arrest. After searching for Bolanos for several weeks, the United States Marshals Service was able to locate and arrest Bolanos in Fresno.

Bolanos appeared before United States Magistrate Judge Barbara A. McAuliffe today and was ordered detained as a flight risk.

This case is the product of an investigation by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorneys Grant B. Rabenn and Megan A. S. Richards are prosecuting the case.

The charges against Bolanos are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt. If convicted, Bolanos faces 10 years in prison for the conspiracy charge and five years in prison on each false claims charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — John Franklin Bye, 45, of Marysville, was sentenced Tuesday by United States District Judge John A. Mendez to 14 years and seven months in prison for distribution of child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, in 2013, the Nevada County Sheriff’s Office received a tip from the National Center for Missing and Exploited Children (NCMEC) that Bye had been trading images of child pornography through email. Law enforcement obtained a state search warrant for the contents of Bye’s emails and found multiple attachments of minors engaged in sexually explicit conduct.

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

Tehama Man Pleads Guilty

Robert Anthony Bonnot, 54, of Gerber, pleaded guilty Tuesday to production of child pornography. According to court documents, in 2010, on at least six separate occasions, Bonnot produced child pornography of a minor child and broadcast it through his web camera to New Zealand. In January 2011, New Zealand officials notified the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) that videos of Bonnot’s activities had been discovered. A forensic examination of his computer identified 426 images and five videos of child pornography. An additional 172 images of child pornography were found on a CD created by Bonnot.

Bonnot has been in custody in the Sacramento County Jail since March 2011. He is scheduled to be sentenced by United States District Judge John A. Mendez on January 20, 2015. Bonnot faces a statutory penalty of 15 to 30 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case is the product of an investigation by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Kyle Reardon prosecuted both cases.

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

SACRAMENTO, Calif. — A federal jury today found Hubert Rotteveel, 52, of Dixon, guilty of one count of mail fraud affecting a financial institution relating to his role in a mortgage fraud scheme, United States Attorney Benjamin B. Wagner announced.

According to evidence produced at trial, Rotteveel acted as a real estate salesperson for 13 properties in Dixon that were purchased by just two buyers. Rotteveel inflated the values of the properties and worked with loan officers to provide false information to lenders about the income and liabilities of the buyers to induce the lenders to fund loans for the properties. Rotteveel made the down payments on the homes, including two that he owned and sold, and got that money (and usually more) back from the lenders at closing. For most of the transactions, when the sales closed, the escrow officer distributed funds to a bank account in the name of Windmill Properties, a company owned by Rotteveel, without disclosing these payments to the lenders. All 13 properties were used as rentals, with Rotteveel collecting the rents through Windmill Properties. Rotteveel netted over $300,000 through the sales in just seven months. According to the indictment, the lenders lost more than $3 million when all 13 properties underwent foreclosure.

Rotteveel’s conviction marked the third mortgage fraud conviction following trial in the past four weeks in the Eastern District. Anna Kuzmenko was convicted following a jury trial on August 29, 2014, and Alan David Tikal was convicted following a bench trial on September 15, 2014.

U.S. Attorney Wagner stated: “Hubert Rotteveel manipulated every aspect of the real estate process for his personal gain. As so often occurs in these cases, the result was losses to the financial institutions and neighborhoods burdened with foreclosed properties. We are grateful for the diligence, professionalism and cooperation that we have received from the FBI, the IRS, and all of our law enforcement partners in prosecuting these cases.”

“The defendant induced lenders to fund loans under false pretenses and then diverted a portion of the loan proceeds to himself,” said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “Each of the homes purchased during the course of the scheme was foreclosed upon. The impact of this type of fraud on homeowners and communities is devastating. IRS-CI is committed to pursuing those who line their pockets with profits from these schemes.”

“Rotteveel’s personal greed replaced the integrity maintained by licensed real estate agents. He intentionally defrauded the mortgage industry, artificially inflating home prices and facilitating loans that were destined for bankruptcy for personal gain,” said Assistant Special Agent in Charge John Gliatta of the Sacramento FBI. “Our FBI agents are committed to working with our investigative partners, such as the IRS and others, to identify and investigate individuals who erroneously believe such schemes have no victims and have no effect on the region’s economy.”

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 Justin L. Lee are prosecuting the case.

Rotteveel is set to be sentenced before Senior United States District Judge William B. Shubb on December 15, 2014, at 9:30 a.m. Rotteveel faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — Eliecer Reyes Huerta, 31, a Mexican national residing in Vallejo, pleaded guilty today to possessing methamphetamine with intent to distribute, unlawfully possessing a firearm, and aggravated identity theft arising from false statements he made in an application for a U.S. passport, United States Attorney Benjamin B. Wagner and U.S. Department of State, Diplomatic Security Service Special Agent-In-Charge David Zebley announced.

According to court documents, Huerta is a removable alien who was previously removed from the United States in 2006 and lacks lawful immigration status to be in the United States.

On July 30, 2012, Huerta submitted an application for a U.S. passport to a passport acceptance officer in Vallejo. In the application, Huerta provided a false name belonging to a real person, a false birthdate, and a false birthplace in Puerto Rico. Huerta presented a birth certificate issued for the ID theft victim and a California driver’s license bearing Huerta’s photograph and the victim’s name and birthdate.

On January 9, 2014, law enforcement agents executed search warrants at Huerta’s residence in Vallejo that he had used as his for his 2012 passport application and his California driver’s license.

During the search of the residence, agents found baggies containing methamphetamine, cocaine, and marijuana; two digital scales and substances that may be used in the manufacture of controlled substances; a respirator/breathing device, miscellaneous supplies such as plastic bags, rubber bands, rubber gloves, sheets of paper, and a notebook consisting of “pay-owe” sheets or ledgers. In Huerta’s bedroom closet, agents found a 9 mm semi‑automatic Sig Sauer Model P226 handgun. Next to the firearm was a Sig Sauer handgun magazine or clip loaded with seven rounds of 9 mm ammunition. There were two children living in the home.

This case is the product of an investigation by the U.S. State Department’s Diplomatic Security Service with assistance from the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and California Department of Motor Vehicles. Assistant United States Attorney Nirav Desai is prosecuting the case.

Huerta remains in custody awaiting sentencing. He is scheduled to be sentenced by Judge Burrell on December 12, 2014. Huerta faces the following possible maximum sentences: for aggravated identity theft — two years and a $250,000 fine; for the methamphetamine-related offense — five to 40 years in prison and a $5 million fine; for the firearms offense — 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment today against Ivan Espinoza Villafana, 24, of Mexico, charging him with conspiracy to manufacture marijuana, manufacture of marijuana, possession of a firearm by an illegal alien, 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. Villafana was arrested at the site and had a Smith & Wesson revolver in his possession. Officers also found a rifle in the camp area of the site. Significant natural resource damage was observed at the site. Vegetation and trees had been cut and removed to improve growing conditions for the marijuana plants, water was diverted from a nearby stream to water the plants, and fertilizers and pesticides were found at the site which, based on the terrain, would likely have drained into waterways in the National Forest.

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

If convicted, Villafana faces a maximum statutory penalty of 20 years in prison and a $1 million fine for the conspiracy and marijuana manufacturing charges, and 10 years in prison and a $250,000 fine for the other charges. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned a single-count indictment today against Mexican national Cresencio Ochoa-Tovali, 46, charging him with assaulting a federal correctional officer, United States Attorney Benjamin B. Wagner announced.

According to court documents, on July 27, 2014, Ochoa-Tovali, an inmate at the Federal Correctional Institution in Herlong, California, was walking in the recreation yard with a group of inmates when a fight broke out in a different part of the facility. After being alerted to the fight, a correctional officer ordered the group of inmates, including Ochoa‑Tovali, to sit on the ground. The inmates complied. The correctional officer approached Ochoa-Tovali, who suddenly stood up and struck the officer. 

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Christiaan Highsmith is prosecuting the case.

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

FRESNO, Calif. — Two sentences for drug trafficking were handed down on Monday for cases originating in Bakersfield, United States Attorney Benjamin B. Wagner announced. 

Martin Barragan, 39, of Bakersfield, was sentenced by United States District Judge Lawrence J. O'Neill to four years in prison for using an interstate facility to aid racketeering. According to court documents, from June 1, 2012, to November 30, 2012, Barragan conspired with others to cultivate and distribute more than 900 marijuana plants. Barragan used a cellphone to manage his marijuana grow operation and business.

Marco Antonio Granados, 21 of Fontana, was sentenced by United States District Judge Anthony W. Ishii to four years and one month in prison for conspiring to distribute and possess with intent to distribute over 500 grams of methamphetamine. According to court documents, on October 16, 2013, Granados and his cousin met with a confidential informant in a parking lot on Weedpatch Highway in Bakersfield to negotiate the sale of 30 pounds of methamphetamine. When Granados and his cousin showed the informant a large cardboard box filled with methamphetamine in the cargo area of their vehicle, law enforcement personnel arrested them. Officers searched the vehicle and recovered 31 individually wrapped and “food saver” sealed packages of methamphetamine.

Both cases were the product of investigations by the Drug Enforcement Administration and the Kern County Sheriff’s Office. Assistant United States Attorney Brian K. Delaney prosecuted the cases.

FRESNO, Calif. — Marcelina Botello Charles, aka Marcelina Botello Arias (Botello), 46, of Hemet, was sentenced today to four years and two months in prison for her involvement in a marijuana cultivation operation that had adverse environmental impacts on public lands, U.S. Attorney Benjamin B. Wagner announced.

On May 19, 2014, Botello pleaded guilty to conspiring to manufacture, distribute and possess with intent to distribute 9,746 marijuana plants grown in the Lilly Canyon area of the Sequoia National Forest and distributing Ratone: Fosfuro de Zinc, an illegal rodenticide, and QúFuran, an illegal insecticide, in violation of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA).

According to court documents, Botello and a companion delivered the illegal pesticides and other materials to the forest cultivation site. The cultivation operation caused extensive environmental damage. Native oak trees and other vegetation were killed or cut down to make room for the marijuana plants. The soil was tilled and fertilizers, pesticides, and rodenticides were spread throughout the site. Cans of rat poison and insecticide were found at both the cultivation site and a residence Botello rented in Bakersfield. During the execution of a search warrant, agents also found marijuana seeds, other items associated with the cultivation operation, and $2,634 in cash.

Ratone: Forsfuro de Zinc contains zinc phosphide, an inorganic rodenticide that is highly toxic to mammals and fish. A single swallow of zinc phosphide could be fatal to a small child. Zinc phosphide can be expected to persist in soil for approximately two weeks. When it breaks down in soil it can release phosphine gas.

QúFuran contains carbofuran, a highly toxic insecticide. In granular form, a single grain will kill a bird; for humans, one quarter of a teaspoon is a sufficient dose to be fatal. It is also a powerful endocrine disrupter. Effective December 31, 2009, EPA cancelled all food tolerances for carbofuran.

“Illegal marijuana cultivation plagues our pristine national forests,” said Scott Harris, U.S. Forest Service Special Agent in Charge. “Those involved in this criminal activity place the community and their natural resources in danger. U.S. Forest Service Law Enforcement and our partners are committed to deterring, investigating, and prosecuting individuals and organizations that would exploit our public lands for such purposes.”

“Increasingly, dangerous, unregistered pesticides are being encountered by law enforcement officers who investigate illegal marijuana grows,” said Jay M. Green, Special Agent-in-Charge of EPA’s criminal enforcement program in California. “Through their indiscriminate application, these unregistered pesticides pollute our lands and waters, create a significant safety risk to humans and animals, and present a mounting cleanup expense for taxpayers. Today’s sentence demonstrates the government’s commitment to hold accountable those individuals who traffic unregistered pesticides onto our public lands.”

Upon completion of her prison sentence, Botello will be on supervised release for five years. She was also ordered to pay $4,294 in restitution to the U.S. Forest Service to cover the cost of cleaning up the grow site. Earlier this year, Botello’s co-defendant, Julio Cesar Villanueva Cornejo was sentenced to six years in prison for his involvement in the conspiracy.

This case was the product of an investigation by the U.S. Forest Service, U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the U.S. Environmental Protection Agency Criminal Investigation Division (EPA-CID), and the Kern County Sheriff’s Office. Assistant United States Attorney Karen Escobar prosecuted the case.

FRESNO, Calif. —Rebekah Root, 33, of Visalia, pleaded guilty today to wire fraud, making a false claim for a tax refund, and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.

According to court documents, in 2011, Root obtained tax documents that were stolen from an Internal Revenue Service office in Visalia. She used those tax documents to submit false tax returns on behalf of six taxpayers, without their knowledge or permission, and claimed approximately $50,000 in fraudulent tax refunds.

San Francisco Field Division Special Agent-in-Charge Rod Ammari for the Office of Investigations, Treasury Inspector General for Tax Administration stated: “When individuals steal information from the Internal Revenue Service and use that information to further identity theft, victims are left picking up the pieces from the financial problems they are left with due to the crimes committed. The Treasury Inspector General for Tax Administration is committed to pursuing individuals that use the IRS to further their identity theft schemes.”

This case is the product of an investigation by the Treasury Inspector General for Tax Administration and the Internal Revenue Service Criminal Investigation. Assistant United States Attorneys Grant B. Rabenn and Patrick R. Delahunty are prosecuting the case.

Root is scheduled to be sentenced by United States District Judge Lawrence J. O'Neill on January 20, 2015. Root faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for wire fraud, five years in prison and a $250,000 fine for making a false claim for a tax refund, and a mandatory minimum penalty of two years in prison to be served consecutively with any other charged offenses for aggravated identity theft. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Today in federal court in Fresno, one man was sentenced to nearly 22 years in prison for producing child pornography, one was sentenced to 10 years in prison for receiving and distributing child pornography, and a third man pleaded guilty to receiving and distributing child pornography, United States Attorney Benjamin B. Wagner announced.

Fresno Man Sentenced to Nearly 22 Years in Prison for Producing Child Pornography (1:12-cr-236 LJO)

Benjamin Ruiz, 29, of Fresno, was sentenced today by U.S. District Judge Lawrence J. O'Neill to 21 years and 10 months in prison for producing child pornography.

According to court documents, in July 2012, Fresno law enforcement received a lead from the Concord Police Department that indicated Ruiz had been producing child pornography in Fresno in September 2010. A grand jury returned an indictment against Ruiz charging him with the above crime on August 2, 2012. He has been in federal custody and pleaded guilty to producing child pornography on June 3, 2014.

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Fresno County Sheriff’s Office, and the Concord Police Department. Assistant United States Attorney Brian W. Enos prosecuted the case.

“While there is no way to undo the despicable crimes committed against these innocent and vulnerable children, it is a relief that the defendants found guilty of these crimes will no longer be in a position to carry out their criminal acts,” said Ray Greenlee, assistant special agent in charge for HSI San Francisco. “HSI will continue to work tirelessly with its federal and local law enforcement partners to seek justice for the young victims in these cases, who will bear the emotional and physical scars of these crimes for the rest of their lives.”

Former Kern County Man Sentenced to 10 Years in Prison (Case #: 1:13-cr-146 AWI)
Senior United States District Judge Anthony W. Ishii sentenced former Kern County resident Robert Aron Sprenkle, 36, to 10 years in prison, to be followed by 15 years of supervised release, for receiving and distributing child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, between September 29, 2012, and November 4, 2012, Sprenkle received and distributed images of child pornography via the Internet. On May 16, 2013, he was arrested in Clearwater, Florida where he had relocated. This case is the result of an investigation by the United States Marshals Service with assistance from the Clearwater Police Department and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorney David Gappa prosecuted the case.

Fresno Man Pleads Guilty to Child Pornography Offense (Case #: 1:12-cr-403 LJO)
In a separate case, Bradley Allen Vaine, 28, of Fresno, pleaded guilty to two counts of receipt and distribution of child pornography. According to court documents, on October 25 and 27, 2012, Vaine received and distributed images of child pornography via the Internet He has been in custody as a danger to the community and a flight risk since his arrest on November 6, 2012. He is scheduled to be sentenced on December 8, 2014, by U.S. District Judge Lawrence J. O’Neil. The plea agreement contemplates a sentence of 25 years in prison and a lifetime term of supervised release. The actual sentence, however, will be determined at the discretion of the court at the hearing. Assistant U.S. Attorney David Gappa is prosecuting the case.

This case was brought as part of Operation Sunflower, an international enforcement action, which ran from November 1 through December 7, 2012, spearheaded by HSI and aimed at rescuing victims and targeting individuals who own, trade, and produce child pornography. Operation Sunflower commemorated the one-year anniversary of a Kansas preteen victim who was located based upon a sunflower-shaped highway sign in the background of a picture.

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

SACRAMENTO, Calif. — After a one-day bench trial on stipulated facts, United States District Judge Troy L. Nunley found Alan Tikal, guilty today of 11 counts of mail fraud and one count of money laundering, United States Attorney Benjamin B. Wagner and California Attorney General Kamala D. Harris announced.

According to evidence presented at trial, between January 7, 2010, and August 20, 2013, Tikal 46, of Brentwood, in Contra Costa County, California, operated a business known as KATN. Tikal and his associates targeted homeowners experiencing difficulties making their monthly mortgage payments, many of whom did not speak English, and promised them that their outstanding mortgage debt would be reduced by 75 percent, falsely claiming he was a registered private banker with access to an enormous line of credit and the ability to pay off homeowners’ mortgages in full. Tikal told homeowners that in return for various fees and payments, their existing loans would be paid in full, and the homeowners would then owe new loans to Tikal that would be only 25 percent of the original loan.

In fact, there was not a single instance in which a homeowner’s debt was paid, forgiven or otherwise extinguished as a result of the mortgage relief program. All of the purported “loan” payments paid to Tikal were simply spent by himself, his family and his associates for personal use. Tikal and his associates convinced more than 1,000 homeowners in California and other states to participate in the program. Relying on the misrepresentations made by Tikal, many of these homeowners stopped making payments on their existing mortgages and lost their homes to foreclosure. Those homeowners paid more than $5,800,000 in fees and monthly payments into the program. Of that, more than $2,500,000 was paid into accounts controlled by Tikal and his family.

“The financial crisis that hit our communities so hard made it very difficult for many of our citizens to make ends meet,” said U.S. Attorney Wagner. “Alan Tikal cynically took advantage of their desperation for his own profit, stealing payments meant to preserve family homes. We are gratified by the Court’s guilty verdict.”

“As California recovers from the foreclosure crisis, financial scams continue to target vulnerable homeowners,” said California Attorney General Kamala D. Harris. “These predators robbed innocent families of their life savings and their piece of the American dream. I congratulate our California Mortgage Fraud Strike Force and the U.S. Department of Justice for their fine work in bringing these individuals to justice.” “Tikal exploited the financial crisis by setting out to hurt others and profit from that hurt, and he accomplished his mission through his crime,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “Homeowners struggling to keep their heads above water paid Tikal thinking they were getting their mortgages modified, foregoing the chance to obtain a real mortgage modification through HAMP, the TARP housing program. Even after SIGTARP agents arrested Tikal, from his jail cell, Tikal continued to run the scheme that stole $5.8 million from homeowners and fraudulently stalled foreclosure proceedings by TARP banks. SIGTARP stands united with our partners like U.S. Attorney Ben Wagner, his team of prosecutors, and Maggy Krell, the terrific prosecutor from the California Attorney General’s office.”

“The defendant preyed on struggling and trusting homeowners”, said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “The impact on homeowners and communities is devastating. While the conviction cannot reverse the damage caused by this defendant, it highlights the ongoing commitment of IRS-CI to hold accountable those involved in these types of crimes.”

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

Co-defendants Tamara Tikal and Ray Kornfeld have previously pleaded guilty and are awaiting sentencing.

Tikal, who has been incarcerated pending these charges since his arrest in September of 2012, is scheduled to be sentenced by Judge Nunley on December 11, 2014. Tikal faces a maximum statutory penalty of 30 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Canadian citizen Armitdeep Mann, 33, of Toronto, Canada, was sentenced today to five years and one month in prison by United States District Judge Anthony W. Ishii for conspiracy to distribute and possess with the intent to distribute cocaine, United States Attorney Benjamin B. Wagner announced.

According to court documents, between July 1, 2012, and September 21, 2012, Mann and others conspired to smuggle cocaine into Canada by concealing it in legitimate cargo. On September 21, 2012, agents followed one of Mann’s co-conspirators as he went to Los Angeles to deliver eight kilograms of cocaine. Law enforcement seized that cocaine and arrested Mann and additional defendants. A search warrant at the Los Angeles residence where authorities believed the eight kilograms of cocaine had been stored resulted in the seizure of an additional 40 kilograms of cocaine. Mann has been held in custody without bail since his arrest.

On April 7, 2014, co-conspirator Manjot Nanner, 32, of Fresno, was sentenced to one year and 10 months in prison, and on June 2, 2014, co-conspirator Vincent Rivaz-Felix, 29, of Los Angeles, was sentenced to four years and three months in prison for the conspiracy.

This case was the product of an investigation by the Organized Crime Drug Enforcement Task Force, the Drug Enforcement Administration, Fresno Police Department, and the Fontana and Vernon Police Departments. Assistant United States Attorney Kevin Rooney prosecuted the case.

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

FRESNO, Calif. — Bay Area resident William James Kennedy, 68, pleaded guilty today to making and subscribing a false tax return, United States Attorney Benjamin B. Wagner announced.

According to court documents, Kennedy sent tax returns to the Fresno IRS office in 2002, 2003, 2004 and 2005, in which he underreported his taxable income. Kennedy, as a financial advisor, touted a variety of tax avoidance schemes, such as the use of corporation “soles” (a corporate form that enables religious leaders to hold property and conduct business for the religious entity) and debt elimination programs, to his clients in order to allow them to avoid paying income taxes. For his financial services, Kennedy was compensated by his clients but failed to properly report that income on his tax returns. In 2002, he claimed an improper charitable deduction to an entity that was one of his own corporation soles. As a result of Kennedy’s conduct, the United States incurred a tax loss of approximately $627,000. As part of his plea agreement, Kennedy will pay restitution to the IRS in this amount.

This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Mark J. McKeon is prosecuting the case.

Kennedy is scheduled to be sentenced by United States District Judge Anthony W. Ishii on November 24, 2014. Kennedy faces a maximum statutory penalty of three years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. —Dimas Mazon, 29, of Bakersfield, pleaded guilty today to conspiring to distribute and possess with the intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, on October 23, 2012, Mazon arranged a one-pound methamphetamine sale. Mazon also admitted that the conspiracy involved approximately 444 grams of pure methamphetamine.

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Southern Tri-County HIDTA Task Force and the Bakersfield Police Department. Assistant United States Attorney Kevin Rooney is prosecuting the case.

Mazon is detained and being held without bail. He is scheduled to be sentenced on December 13, 2014, by United States District Judge Lawrence J. O'Neill. Mazon faces a possible maximum sentence 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.

FRESNO, Calif. —Gamaliel Salas-Mendoza, aka Rene Salas-Mendoza (Salas), 38, an undocumented alien from Mexico, was sentenced today to 11 years and eight months in prison for conspiring with his cousin Miguel Sanchez-Mendoza, 46, to distribute and to possess with the intent to distribute methamphetamine, heroin, and cocaine, United States Attorney Benjamin B. Wagner announced. United States District Judge Anthony W. Ishii also ordered Salas to register as a drug offender.

Salas was sentenced following his guilty plea in June. According to court documents, Salas and his cousin maintained a stash house in Bakersfield from where law enforcement officers seized seven pounds of methamphetamine, one and a half pounds of cocaine, and a half‑pound of heroin, all packaged for sale. In addition to the drugs, officers found and seized digital scales, precursor chemicals used in the manufacture of methamphetamine, and $9,483 in cash. The cash has been forfeited as proceeds of drug trafficking.

Sanchez pleaded guilty and was sentenced on April 28, 2014, to eight years in prison. Both men are subject to deportation following completion of their sentences.

This case is the product of an investigation by the U.S. Drug Enforcement Administration, Kern County Sheriff’s Office Narcotics Enforcement Team, Kern County Sheriff’s Office Major Violators Unit, and the California Multijurisdictional Methamphetamine Enforcement Team. Assistant United States Attorney Karen Escobar prosecuted the case.

SACRAMENTO, Calif. — Three Sacramento-area residents were sentenced today for their roles in the Diversified Management Consultants Ponzi scheme, United States Attorney Benjamin B. Wagner announced. Christopher Jackson, 46, of Elk Grove, was sentenced to 30 years in prison; Michael Bolden, 60, of Sacramento, was sentenced to 20 years in prison; and Victor Alvarado, 53, of Sacramento, was sentenced to 10 years in prison.

United States District Judge Troy L. Nunley sentenced each defendant during a daylong hearing in which he heard from many defrauded investors and an FBI forensic accountant. At the end of the day, the court determined that three remaining co-defendants will be sentenced at a later date. After hearing from victims, Judge Nunley characterized the scheme as outright greed saying, “When you had an opportunity to stop, even when it involved your own family members, you didn’t. This is one of the worst fraud schemes I have ever seen.”

According to court documents, between 2003 and 2009, Diversified Management Consultants (DMC) purported to help people invest money in real estate development and save their homes from foreclosure. In reality, DMC was an investment fraud scheme that defrauded at least 240 people out of approximately $36,950,000. The defendants ran various investment clubs under the DMC umbrella. They induced people to invest their ordinary savings, tax-deferred retirement savings, and the proceeds of cash-out residential loan refinancing. They told investors that their money would be used for purchasing property and building structures for a real estate venture. In fact, victim money went to pay other investors’ bogus returns on investment and to pay for the defendants’ personal expenses, including luxury lifestyle expenditures. Even as DMC was failing, Bolden urged his subordinate club presidents to recruit still more investors to “keep the lights on” by using new funds to pay returns to earlier investors.

Bolden was the president of DMC and pleaded guilty to one count of wire fraud. This was not Bolden’s first federal fraud conviction. In 1994, Bolden was sentenced to 21 months in prison for conspiracy, loan fraud, and securities fraud in connection with an earlier investment fraud scheme.

Jackson was the president of Genesis Innovations. The only defendant to go to trial, a jury convicted him of six counts of wire fraud. The evidence at trial established that out of the $10 million he took from 80 investors, Jackson invested no more than about $2.5 million in developing real estate. He used the rest to pay false returns to other investors and to live in a way that he himself compared to an entertainment or sports star. Jackson used the Genesis Innovations account to obtain a Lamborghini, a Rolls Royce, a BMW, and a Range Rover. He employed a personal chef and a bodyguard who at times carried Jackson’s cash for him in a metal briefcase. Jackson took an entourage of guests on annual trips to Las Vegas where they joined him at the finest hotels and restaurants. He used over $1 million from his investment club account to go shopping, buy jewelry, and to landscape his house.

Alvarado was the president of Equishare. Alvarado pleaded guilty to one count of conspiracy and one count of making false statements. Alvarado was the one who found a way for DMC to have access to victims’ tax-deferred retirement accounts through a third-party self-directed IRA administrator. When interviewed by the FBI about his involvement in DMC, Alvarado lied.

Garry Bradford, 65, of Sacramento, was the president of Millenium Capital Group. Bradford pleaded guilty to four counts of wire fraud. He used victim money for Ponzi payments and also for gambling at area casinos. His sentencing is set for September 18, 2014. Nicholo Arceo, 41, of Sacramento, was the president of Envision. He pleaded guilty to conspiracy. His sentencing is set for October 2, 2014. Erica Arceo, 46, of Sacramento, was an in‑house attorney at DMC. She pleaded guilty to conspiracy and is no longer eligible to practice law. Her sentencing is set for September 18, 2014.

“Bolden, Jackson and their co-defendants cruelly took advantage of their victims, extracting from many of them a lifetime of hard-earned savings,” said U.S. Attorney Wagner. “They may have destroyed his victims’ dreams of financial security in retirement, but their own retirement in federal prison will be considerably worse.” U.S. Attorney Wagner cited the outstanding work of FBI Special Agent Richard Snodgrass as critical to dismantling the complex investment fraud scheme, which required the analysis of dozens of bank accounts and interviews of scores of victims of other witnesses.

“This egregious crime siphoned funds from investors to support the criminals’ lavish lifestyles and keep the Ponzi scheme afloat instead of fulfilling the promise of substantial return on their investments. As this case demonstrates, potential investors must carefully research both the investment and the people who are soliciting funds prior to investing in any opportunity. If it sounds too good to be true, many times it is,” said Assistant Special Agent in Charge John Gliatta of the FBI’s Sacramento division. “The FBI is committed to identifying and investigating those who abuse trust to commit large-scale fraud to ensure that such criminals will face justice.”

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys Matthew D. Segal and Jared C. Dolan prosecuted the case.

This case was done in connection with the President’s Financial Fraud Enforcement Task Force that was established 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. For more information on the task force, please visit www.StopFraud.gov.

SACRAMENTO, Calif. — Andre Cawthorne, 40, of Vallejo, and Eileen Knight, 43, of Los Angeles, entered guilty pleas to drug trafficking charges arising out of a wide-ranging investigation into the distribution MDMA, popularly known as the drug “Ecstasy,” crack cocaine, heroin, Oxycodone, and marijuana in the Vallejo area, United States Attorney Benjamin B. Wagner announced.

According to court documents, the DEA-led investigation uncovered a network of drug distributors working in the “Crest” neighborhood of Vallejo along with individuals transporting large quantities of drugs outside of California to realize a larger profit. A number of the participants, including Major Norton and Gaylord Franklin, performed as rappers under the entertainment label known as “Thizz Entertainment.” In many of songs by artists on the Thizz Entertainment label, the lyrics glorify and promote the use and distribution of MDMA pills. In April 2012, agents arrested a total of 25 individuals in Vallejo, Stockton, Fairfield, Oakland, Los Angeles, New York, and Oklahoma City. During the investigation, agents seized approximately 45,000 MDMA pills, four pounds of crack cocaine, two pounds of heroin, and $200,000 in suspected drug proceeds. Agents also forfeited 230 acres of property valued at approximately $1 million as part of the investigation. Agents also seized a 2010 Audi A6 with an estimated value of $60,000.

Cawthorne and Knight are scheduled to be sentenced on December 11, 2014. Cawthorne faces a maximum statutory sentence of four years in prison and a $250,000 fine. Knight face a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Other defendants indicted in this investigation have recently entered guilty pleas:

Michael Lott, 50, pleaded guilty to conspiracy to distribute MDMA and crack cocaine; Major Norton, 39, pleaded guilty to conspiracy to distribute MDMA; Gaylord Franklin, 34, pleaded guilty to conspiracy to distribute MDMA; Dante Barbarin, 43, pleaded guilty to using a phone to facilitate drug dealing; Clifford Bullock, 37, pleaded guilty to conspiracy to distribute marijuana; Ung Duong, 48, pleaded guilty to conspiracy to distribute MDMA; Phat Nguyen, 43, pleaded guilty to conspiracy to distribute MDMA; Narco McFarland, 46, pleaded guilty to using a phone to facilitate drug trafficking; Damian Peterson, 37 pleaded guilty to using a phone to facilitate drug trafficking; and
Mikel Brown, 51 pleaded guilty to using a phone to facilitate drug trafficking.

This case is the product of an investigation by the DEA Sacramento District Office, the Vallejo Police Department, El Dorado County Sheriff’s Office, and the Sacramento FBI Safe Streets Task Force. Assistant United States Attorney Jason Hitt is prosecuting the two related cases. It was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF Program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

WASHINGTON – Assistant United States Attorneys Jean M. Hobler and Lee S. Bickley of the U.S. Attorney’s Office in the Eastern District of California were two of 243 members of the Department of Justice nationwide recognized by Attorney General Eric Holder and Executive Office for U.S. Attorneys (EOUSA) Director Monty Wilkinson at the 30th annual Director’s Awards Ceremony today in Washington D.C.

The Eastern District of California is one of 44 federal districts represented at the ceremony, which was held in the Great Hall at the Robert F. Kennedy Department of Justice Building. The awards recognize outstanding achievements by employees of the U.S. Attorney’s Offices.

In his prepared remarks to awardees, Attorney General Holder said, “Locally, nationally, and internationally, you represent the very best that this Department has to offer. Your work embodies our ongoing commitment — not merely to win cases, but to do justice; to protect our fellow citizens from crime, violence, and terrorism; to empower the most vulnerable among us; and to uphold the rule of law.”

EOUSA Director Monty Wilkinson echoed those sentiments, saying to the recipients, “You have persevered, and remained focused and motivated — achieving remarkable results in work that makes a difference in the lives of citizens across our great country. The vast scope of your collective accomplishments is nothing short of exceptional.”

Jean Hobler and Lee Bickley each received the Director’s Award for Superior Performance by an Assistant United States Attorney for their outstanding work in prosecuting Anthony Vassallo’s Ponzi scheme that was one of the largest in the district’s history. Vassallo took in over $80 million of investor funds and lost over $40 million of those funds. They were assigned this case after the departure of the initiating Assistant United States Attorney and the reassignment or retirement of all the original case agents. Nevertheless, Assistant United States Attorneys Hobler and Bickley and new agents prepared for trial in this case involving dozens of feeder investment funds and over 400 individual victims. In May 2012, Bickley successfully moved to have Vassallo’s pretrial release revoked, three years after he was charged, to the great relief of Vassallo’s victims. Hobler led the plea negotiations, which were protracted and complex. Shortly before trial, and four years after he was charged, with his third defense attorney and having fought every suggestion he had committed a crime, on February 1, 2013, Vassallo pleaded guilty. On June 21, 2013, Vassallo was sentenced to 16 years in prison and was later ordered to pay over $43 million in restitution to his victims. Co-conspirator Kenneth Kenitzer pleaded guilty in a related case and on February 14, 2014, was sentenced to six years in prison.

“Prosecuting complex financial crimes has been a priority for this office, and it is a job we have been doing well,” said U.S. Attorney Wagner. “As the Attorney General recognized today, Jean Hobler and Lee Bickley have done outstanding work, both in the prosecution of a huge Ponzi scheme and in their handling of many other cases in this district. Their colleagues in this office are proud of them.”

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. —Wladimir Rocha, 35, a Cape Verde national and resident of Winchester, Virginia, pleaded guilty today to one count of mail fraud, in connection with a telemarketing scam that tricked people into sending him money in order to receive cash prizes, United States Attorney Benjamin B. Wagner announced.

According to court documents, the scam targeted elderly victims who believed the money they sent to the defendants would be used to pre-pay taxes and fees on winnings from a sweepstakes or lottery.  As part of the scam, Rocha opened different post office boxes in Virginia to receive victim money.  The scam targeted victims throughout California, including residents of Woodland, Stockton, Bakersfield, and Dinuba. Co-defendant Joseph Nkunzi pleaded guilty on September 2, 2014, and is scheduled to be sentenced on November 19, 2014.

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

Rocha is scheduled to be sentenced by United States District Judge Kimberly J. Mueller on December 3, 2014. Rocha faces a maximum statutory penalty of thirty years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — One defendant was sentenced and one pleaded guilty today in separate child exploitation cases, United States Attorney Benjamin B. Wagner announced.

In the first case, Senior United States District Judge Anthony W. Ishii sentenced William John Cornelius, 49, of Modesto, to six years and six months in prison, to be followed by 15 years of supervised release, for his conviction for possession of child pornography. According to court documents, between December 8, 2012, and January 11, 2013, Cornelius knowingly possessed more than 600 images of child pornography. Some of the images depicted prepubescent minors and other images depicted violence or sadistic or masochistic conduct. He was also ordered to pay $3,000 to the National Center for Missing & Exploited Children in Alexandria, Virginia. This case was the result of an investigation by the Ceres Police Department.

In the second case, Ernest Garza Reyes, 31 of Madera, pleaded guilty before Judge Ishii to two counts of receiving child pornography. Between July 2, 2011, and November 13, 2011, he knowingly received or distributed images of child pornography using a computer connected to the Internet. A sentencing hearing has been scheduled for November 17, 2014, at 10:00 a.m. At that time Reyes faces a maximum potential sentence, for each count, of 20 years in prison, a $250,000 fine, and a lifetime term of supervised release. The actual sentence, however, will be determined by the court after considering the federal sentencing guidelines and a number of statutory factors. This case is the result of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Sheriff’s Offices of Madera and Fresno Counties.

Assistant United States Attorney David Gappa prosecuted both cases. They were brought as part of Project Safe Childhood (PSC), 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 and prosecute those who sexually exploit children, and to rescue victims. For more information about PSC, please visit www.justice.gov/psc. Click on the “resources” tab for information about Internet safety education.

FRESNO, Calif. — United States District Judge Anthony W. Ishii sentenced Sam Kounhavong, aka Inpong Kounhavong, 52, of Fresno, today to two years in prison, to be followed by three years of supervised release, for his involvement in a large-scale marijuana cultivation operation in Stanislaus County that was irrigated by water diverted from the San Joaquin River, U.S. Attorney Benjamin B. Wagner announced. Judge Ishii also ordered Kounhavong to register as a drug offender.

In March 2014, Kounhavong pleaded guilty to conspiring to cultivate 907 marijuana plants grown in Newman. Water from the San Joaquin River had been diverted to irrigate the marijuana plants. At the grow site, agents found a firearm, respirators, motion detectors, chemicals, fertilizers, makeshift tents on plywood platforms, some elevated, a guard dog, and a sign that said: “‘Hey You’ ‘Yeah You’ Keep Out.”

The case was the product of an investigation by the DEA and Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto. Assistant United States Attorney Karen A. Escobar prosecuted the case.