Eastern District of California

SACRAMENTO, Calif. — Erik Moreno, 19, of Stockton, was sentenced today by United States District Judge Lawrence K. Karlton to 10 years in prison for distributing methamphetamine in a case resulting from the Operation Gideon IV investigation, United States Attorney Benjamin B. Wagner announced.

Operation Gideon IV was an ATF surge that targeted violent criminals in an effort to dismantle criminal organizations operating in Stockton. Experienced undercover ATF special agents from throughout the U.S. were deployed with local ATF agents and Stockton police officers to conduct covert investigations into some of the most violent criminals in Stockton and surrounding areas. Operation Gideon IV ran from January to April 19, 2013, charging 55 individuals and seizing 84 firearms.

“This lengthy prison sentence will remove a dangerous criminal who has plagued our neighborhoods by selling drugs,” stated Special Agent in Charge Joseph M. Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “The success of this investigation is attributed to the excellent undercover work that was conducted and the solid partnership between ATF, the Stockton Police Department, and the United States Attorney’s Office.”

According to court documents, law enforcement conducted an extensive investigation into the drug and gun dealing activities of Moreno and his co-defendants, Luis Magana and Juvenal Junez. On March 11, 2013, Moreno and Magana met an undercover ATF agent at the Kmart parking lot at 2181 East Mariposa Road in Stockton. During the meeting, Moreno sold the undercover agent approximately one-quarter pound of methamphetamine for $2,200. During a second meeting, on March 22, 2013, Moreno met an undercover ATF agent at the same parking lot and sold the undercover agent approximately one-quarter pound of methamphetamine for $1,920 and a HI-Point semi-automatic pistol for $350.

In April 2014, Judge Karlton sentenced Luis Magana to 10 years in prison and sentenced Juvenal Junez to four years and nine months in prison.

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Christiaan Highsmith prosecuted the case.

FRESNO, Calif. — Xue Heu, 37, of Modesto, was arrested this morning following an indictment by a federal grand jury charging him with wire fraud in connection with a fraudulent real estate investment scheme, United States Attorney Benjamin B. Wagner announced.

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

The indictment alleges that Heu did not use the investors’ money to purchase the properties as promised, and instead, he directed the money to his own accounts and used the money for other purposes. As a result of his conduct, Heu allegedly defrauded investors of more than $360,000.

This case is the product of an investigation by the Federal Bureau of Investigation and the Stanislaus County District Attorney’s Office. Assistant United States Attorney Christopher Baker is prosecuting the case.

If convicted of the charges, Heu faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each of the eight counts of wire fraud. 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. —Phloch Ouk, 46, of San Jose, pleaded guilty today to growing 50 or more marijuana plants, United States Attorney Benjamin B. Wagner announced.

According to court documents, Ouk was arrested on Aug. 1, 2013, in Fresno County. He was one of about 60 people found on a rural parcel of land on E. Kings Canyon Road where approximately 31,500 marijuana plants were being grown. At that time, Ouk claimed he was growing 99 marijuana plants for personal medicinal purposes. In his guilty plea today, Ouk admitted growing marijuana in 2013 and also admitted that in 2012 law enforcement agents had contacted him at a different Fresno County marijuana cultivation site and advised him that marijuana cultivation was prohibited by federal law.

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

Ouk is scheduled to be sentenced by United States District Judge Anthony W. Ishii on Nov. 10, 2014. Ouk faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Patricia Renteria, 40, and her son Steve Renteria, 21, both of Cathedral City, to five years and 10 months in prison, to be followed by three years of supervised release, for conspiring to possess and distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, Steve Renteria began negotiating to sell 50 pounds of methamphetamine to a source in Fresno. Patricia and Steven along with Patricia’s 17 year old son, came to Fresno in April 2013 to meet with the source, and deliver the methamphetamine. After meeting with the source Patricia and Steve were taken into custody and more than 50 pounds of crystal methamphetamine that testing determined to be 99.3 percent pure was seized from Steve Renteria’s vehicle.

This case was the product of an investigation by the Fresno Methamphetamine Task Force, which is made up of agents from the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), California Highway Patrol, California Department of Justice, Fresno Police Department, and the Fresno County Sheriff’s Office. Assistant United States Attorney Laurel J. Montoya prosecuted the case.

FRESNO, Calif. — Senior United States District Anthony W. Ishii sentenced Brett Lee Scott, 26, of Buttonwillow, to one year and nine months in prison, to be followed by three years of supervised release, for aiming a laser pointer at a law enforcement aircraft, United States Attorney Benjamin B. Wagner announced.

According to court documents, Scott used two different laser pointers to strike Air-1, a Kern County Sheriff’s Office helicopter, over a six-month period. Scott explained his actions by stating that he was bored. The lasers emitted powerful green or purple beams. As a result, the pilots of Air-1 suffered flash blindness that lasted a few minutes, causing disorientation. The pilots were ultimately able to pinpoint the origin of the beams and, with the help of patrol deputies, identified Scott as a suspect. Both laser pointers in this case exceeded the legal power emission limit. One of the lasers was 17 times more powerful than what is legally permissible.

“This is a truly senseless crime, and a very serious one,” said U.S. Attorney Wagner. “Defendants like Mr. Scott, who thoughtlessly point lasers at an aircraft for their short-sighted amusement, put lives at risk and create the very real possibility that a needless tragedy will occur. My office will continue to prosecute these cases vigorously and will work with the FBI and our local law enforcement partners to send the message that this behavior will not be tolerated.” 

“Boredom is no excuse for pointing a laser at an aircraft. Scott’s sentence reinforces our message to the public: This activity is a violation of federal law and is a serious risk to public safety,” said Special Agent in Charge Monica M. Miller of the Sacramento FBI. “Scott may have been located and arrested, but stopping such reckless activity is the only way to ensure public safety. Everyone is encouraged to discuss the risks of this activity with their families. Please report anyone shining a laser at an aircraft to 911 immediately.”

According to the FAA, there were 3,960 reports of people shining lasers at aircraft in the United States in 2013. In the 34-county Eastern District of California, 94 laser strikes were reported, with the Fresno Yosemite International Airport and Bakersfield Meadows Field Airport reporting the most. Law enforcement and emergency transport helicopters are particularly vulnerable, since they typically fly at lower altitudes. Their convex-shaped windows also cause greater refraction and visual interference when the beam of a laser strikes. Night-vision goggles can also amplify the beam and pose a greater threat of visual interference. Earlier this year, as a result of the increasing threat of laser strikes on aircraft, the FBI in Sacramento, along with several other cities in the United States that have reported a large number of laser incidents, launched a public awareness campaign regarding the issue and offered a $10,000 reward for information that leads to the arrest of a laser offender. Since the launch of the public awareness campaign, the FBI reports a nationwide decrease in the number of laser incidents. However, the number of laser incidents in the Eastern District has increased.

The case against Scott was the result of a joint investigation conducted by the FBI and Kern County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.

FRESNO, Calif. — Rudy Alberto Gonzalez Rocha, 29, and his brother, Eloy Damian Gonzalez Rocha, 33, both of Jalisco, Mexico, were sentenced today in federal court for being aliens in possession of firearms seized from a marijuana cultivation site, U.S. Attorney Benjamin B. Wagner announced.

Rudy Gonzalez was sentenced to three years and one month in prison and Eloy Gonzalez was sentenced to two and a half years in prison. They are subject to deportation to Mexico upon completion of their sentence. Earlier this year, the Gonzalez brothers entered guilty pleas to being illegal aliens in possession of three firearms, one of which was reported stolen from Arkansas and another having an obliterated serial number. The guns were found during the execution of a narcotics search warrant at the men’s leased residence in Dunlap.

According to court documents, at the beginning of this year, Fresno County Sheriff deputies had been dispatched to the property to investigate several calls about people coming and going to and from the property, which had a strong odor of marijuana. Deputies seized 260 marijuana plants, more than 200 pounds of processed marijuana, and $17,120 in cash, along with the firearms. The defendants have agreed to the forfeiture of the money and guns. In addition to imposing sentence, Senior U.S. District Judge Anthony W. Ishii also ordered the forfeiture of the cash and firearms.

“The firearms seized from these defendants are a further testament to the fact that the criminal organizations involved in illegal marijuana cultivation operations have no qualms about using violence against those who get in their way,” said Mike Prado, resident agent in charge of HSI Fresno. “This case is also an important reminder about the important role federal and local collaboration plays in combatting this public safety threat and ensuring that those responsible are brought to justice.”

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and Fresno County Sheriff’s Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives.

Assistant U.S. Attorney Karen A. Escobar prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned an indictment Thursday, charging Michael Bailey, 59, of Sacramento, with receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, law enforcement officers conducting an undercover investigation into online child pornography being shared over peer-to-peer networks located an Internet user in Sacramento making child pornography available for download. When officers executed a search warrant at Bailey’s home, a computer containing the pornographic videos was recovered.

This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Valley Internet Crimes Against Children Task Force. Assistant United States Attorney Matthew G. Morris is prosecuting the case.

Bailey was arrested on July 22, 2014, and has been in custody since then. He is scheduled to be arraigned on August 6, 2014.

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

This case was brought as part of Project Safe Childhood, a nationwide initiative 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.

FRESNO, Calif. — Surjit Toor, 59, and his son Raju Toor, 34, both of Hilmar, were arraigned in Fresno today for a scheme that defrauded Foster Farms of more than $46,000, United States Attorney Benjamin B. Wagner announced.

A federal grand jury returned an indictment on Thursday, charging the defendants with conspiracy to commit mail fraud and one count of mail fraud for a scheme that billed Foster Farms for work that was never performed. The defendants pleaded not guilty and were released on their own recognizance.

According to court documents, Surjit Toor was a maintenance manager at the Foster Farms processing plant in Livingston, and Raju Toor operated a construction company called Mid State Mechanical (Mid State). Surjit Toor was responsible for hiring third party contractors to work at the plant when needed. The indictment alleges that Raju Toor would submit fraudulent invoices to Foster Farms, and Surjit Toor would approve them in order to cause Foster Farms to pay for work that was never performed.

On February 22, 2012, Surjit Toor caused Foster Farms to send a purchase order to Mid State requesting that Mid State construct a 110-foot inspection catwalk at the Foster Farms processing plant. Raju Toor then sent Foster Farms an invoice for more than $20,000, which Surjit Toor approved. However, an in-house maintenance team had already constructed the catwalk a month earlier. The defendants also received payment for a fraudulent ammonia vessel project involving the modification of a large metal tank designed to hold ammonia, which is part of the plant’s refrigeration system. Surjit Toor caused Foster Farms to send a purchase order to Mid State for this project, and although Raju Toor did not perform any work, he sent an invoice, and Surjit Toor approved payment.

In March 2012, Foster Farms mailed a check to Raju Toor that included payment for the catwalk and ammonia vessel projects. Raju Toor transferred the majority of the funds back to his father.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Grant B. Rabenn and Special Assistant United States Attorney Brian A. Fogerty are prosecuting the case.

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

SACRAMENTO, Calif. — Michelle Lee Kern, 36, of Sacramento, was sentenced today by United States District Judge Morrison C. England Jr. to 46 months in prison and ordered to pay $642,625 in restitution for financial advisor fraud, United States Attorney Benjamin B. Wagner announced.

According to court documents, Kern worked as a licensed financial advisor at Ameriprise Financial Services Inc. in Roseville between 2009 and December 2012. While working as a financial advisor, Kern stole $642,625 from approximately 20 clients by making wire transfers from client accounts to Kern’s own bank accounts and credit cards. Kern also forged client signatures on checks. According to victim statements read in court, Kern’s theft made it difficult for some victims to retire, support disabled children, and pay for college.

“Kern abused her role as a trusted, licensed financial advisor to defraud her clients for personal gain. Her actions clearly demonstrated disregard for the perilous financial situation her clients ultimately faced when they became victims of the fraud,” said Special Agent in Charge Monica M. Miller of the Sacramento division of the Federal Bureau of Investigation. “Investigation and prosecution of financial fraud is a top priority for the FBI, particularly such that is committed by those entrusted to safeguard funds.”

While awaiting sentencing in this case, Kern was charged in Placer County with embezzling from her church. That case is pending, and Kern is presumed innocent of those charges, unless and until proven guilty.

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

Kern was ordered to turn herself in to the Bureau of Prisons on September 11, 2014, to begin serving her sentence.

SACRAMENTO, Calif. —Thomas W. Stringfellow, 55, of Placerville, pleaded guilty today to two counts of willfully making false tax returns, United States Attorney Benjamin B. Wagner announced.

According to court documents, from 2006 through 2010, Stringfellow underreported his business income on tax returns by more than $1.1 million, and underreported his personal income on tax returns by more than $1 million. Stringfellow owned New Horizon Painting, and rather than depositing all of the business checks into the appropriate accounts, he cashed some of the checks and did not report those amounts as income. In total, Stringfellow’s underreporting of his business income and his personal income led to a tax loss of more than $687,000.

This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Jean M. Hobler is prosecuting the case.

Stringfellow is scheduled to be sentenced by Judge Morrison C. England Jr. on December 18, 2014. Stringfellow faces a maximum statutory penalty of three years in prison and a $250,000 fine on each count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Jose Antonio Reyna-Chavez (Reyna), 18, of Michoacàn, Mexico, charging him with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, damaging public land and natural resources, and avoiding immigration officers, United States Attorney Benjamin B. Wagner announced.

According to court documents, Reyna was involved in the cultivation of 1,539 marijuana plants in the Blue Canyon area of the Sierra National Forest in Fresno County when he attempted to flee from law enforcement officers. The cultivation operation was within three miles of a public campground and about seven miles from Shaver Lake. The marijuana cultivation caused significant damage to the land and natural resources of the forest. Six large helicopter net loads of material and debris, including fertilizer, propane tanks, and poisons, were removed from the grow site.

This case is the product of an investigation by the U.S. Forest Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Fresno County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar is prosecuting the case.

Reyna has been ordered detained pending trial and is scheduled for arraignment and plea on the indictment on August 6, 2014.

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

FRESNO, Calif. — A federal grand jury returned a four-count indictment charging Marisela Rico-Tzintzun, 38, her daughter Vanessa Garcia, 23, and friend Brenda Ruiz-Tovar, 26, all of Fresno, with conspiring to distribute and possess with the intent to distribute methamphetamine, distributing methamphetamine, and possessing methamphetamine with the intent to distribute, United States Attorney Benjamin B. Wagner announced.

According to court documents, the three had been working together since April 2013 to sell methamphetamine in the Fresno area. On September 4, 2013, the three sold approximately one pound of methamphetamine, and on April 7, 2014, Rico-Tzintzun sold approximately one ounce. On July 17, 2014, a search warrant for Rico-Tzintun’s residence was issued and nearly two pounds of methamphetamine was found there.

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Central Valley Marijuana Investigation Team that is composed of officers from the Drug Enforcement Administration, California Department of Justice, and the Fresno County Sheriff’s Office. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.

If convicted, the defendants face a maximum statutory penalty of 10 years to life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

SACRAMENTO, Calif. — Eric Johnston, 23, of Folsom, was sentenced today by United States District Judge Morrison C. England Jr. to 12 years in prison, to be followed by 20 years of supervised release, for attempted enticement of a minor, United States Attorney Benjamin B. Wagner announced.

According to the plea agreements filed in the case, Johnston arranged to meet what he thought to be a 13-year-old at a hotel. Johnston was arrested when he arrived at the designated meeting. Following his arrest, Johnston allowed law enforcement to assume his identity and they then sent a message to Nicholas Perry telling him that he was at the hotel. Perry arrived approximately 45 minutes later and was arrested. Both defendants have been in federal custody since their arrest.

Subsequent investigation identified a minor with whom Johnston was engaged in a sexual relationship. Johnston was sentenced in Sacramento Superior Court based on that conduct to two years in prison to be served concurrently with his federal sentence. The Sacramento case number is 12F04917.

Perry is scheduled to be sentenced by Judge England on April 3, 2014. He faces a statutory penalty of 10 years to life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This case 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 is prosecuting the case.

SACRAMENTO, Calif. — John Michael Dial, 58, of Skaneateles, New York, pleaded guilty today to 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 the plea agreement, 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. On one occasion, flight records from Dial’s employer show him operating a news helicopter in the Eastern District of California.

In June 2011, in order to work for an air ambulance service in Susanville, Dial provided numerous false identification documents and knowingly and willfully made material false statements about his true identity. These statements concerned matters within the jurisdiction of the FAA, and were relevant because they prevented the FAA from knowing the true identity of a pilot operating an aircraft within the United States. Had the FAA known Dial’s true identity, it would have known that Dial had previously been convicted of making false statements to the FAA regarding his medical certificate and student pilot certificate. From July 3, 2011, to November 7, 2011, Dial operated a helicopter approximately 63 times, without having a valid pilot certificate.

On March 15, 2012, Dial was hired under his real name to work as a television news helicopter pilot in Sacramento. Dial submitted a fraudulent FAA Temporary Airman Certificate under his real name, and an FAA Medical Second Class Certificate under his real name. Dial flew for the television station two times without having a valid pilot certificate.

According to the plea agreement, Dial used the identity of a former co-worker to gain employment with an air ambulance service in New York. Dial also created a fraudulent United States passport using that person’s identity.

On April 8, 2012, Dial was stopped by a Cascade, Idaho police officer and gave police a fraudulent Vermont driver’s license. He was cited for driving without a license and told to not drive his vehicle. Shortly thereafter, Dial was observed driving away from the scene. When Dial was stopped again, police learned that his true name was likely John M. Dial and that he had two outstanding felony warrants in the state of Washington.

During a Mirandized statement, Dial admitted that his name was John Michael Dial, and that he obtained the Vermont driver’s license approximately 12 years ago by providing fictitious information. He said that he did this in order to avoid apprehension for the two outstanding felony warrants. During a search of Dial’s vehicle, two wallets were located. In one wallet was information relating to John M. Dial, including a California driver’s license; in the other wallet were documents relating to the identity theft victim and second fraudulent Vermont driver’s license.

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

Dial is scheduled to be sentenced by United States District Judge Morrison C. England Jr. on August 14, 2014. Dial faces a mandatory statutory penalty of two years in prison and a $250,000 fine.

FRESNO, Calif. — Jose Luis Garcia Villa (Garcia), 22, of Michoacàn, Mexico, has been sentenced to three years and 10 months in prison for his involvement in a toxic marijuana cultivation operation in the Sequoia National Forest, according to U.S. Attorney Benjamin B. Wagner. Garcia was also ordered to pay $3,328 in restitution to the U.S. Forest Service for damage sustained to public land and natural resources as a result of the cultivation operation.

According to court documents, Garcia conspired to cultivate 8,876 marijuana plants near the Greenhorn Creek Trail in the Sequoia National Forest in Kern County. Native oak trees and other vegetation were cut down to make room for the marijuana planted there. The soil was tilled, and fertilizers and pesticides, including a highly toxic and illegal rat poison from Mexico called Fosfuro de Zinc or zinc phosphide, were spread throughout the site. Exposure to zinc phosphide can cause a variety of ailments, including vomiting, burning sensations, abdominal pain, unconsciousness, and lack of muscle control. If ingested, a small quantity can be fatal to humans. Garcia is subject to deportation after he serves his sentence.

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

FRESNO, Calif. — Federico Garcia Garcia, 45, of Arvin, pleaded guilty today to two counts of filing false claims with the U.S. Internal Revenue Service in connection with a scheme to obtain tax refunds, United States Attorney Benjamin B. Wagner announced.

According to his plea agreement, between October 2007 and December 2008, Garcia caused 147 false federal income tax returns to be submitted to the IRS in the names of third parties, in a scheme to obtain tax refund checks. The tax returns were submitted to the IRS with fabricated Form W-2s containing false wage and withholding information. Due to the scheme, approximately $308,317 was fraudulently claimed in federal tax refunds, and the IRS paid out approximately $79,932.

This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Kirk Sherriff is prosecuting the case.

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

FRESNO, Calif. — Senior United States District Judge Anthony W. Ishii sentenced Roy Palomera, 24, of Fresno, to seven years in prison, to be followed by 18 years of supervised release, for receipt of child pornography, United States Attorney Benjamin B. Wagner announced. Palomera was ordered to pay $5,000 in restitution to one victim whose images he possessed.

According to court documents, investigators determined that Palomera was making child pornography available through a file-sharing program. When a search warrant was executed at his residence on August 30, 2012, his computer contained numerous images of minors being sexually abused. Some of the victims were prepubescent, and several images depicted violence, bondage, or other sadistic or masochistic conduct.

“This sentence should serve as a sobering reminder of the consequences facing those who sexually exploit defenseless children,” said Nick Annan, acting special agent in charge for Homeland Security Investigations San Francisco. “This defendant was among 14 individuals arrested in the Fresno area as part of Operation Sunflower, a nationwide enforcement action led by Homeland Security Investigations targeting Internet child predators. The reality is, every time a photo or a video of an innocent child being sexually exploited is viewed, that victim is violated again. That is why we owe it to all of the children identified in these cases to work tirelessly to see that all perpetrators involved in any form of child exploitation are brought to justice.”

This case was the result of an investigation by the Fresno office of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Fresno County Sheriff’s Office. Assistant United States Attorney David Gappa prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative 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. — A federal grand jury returned a two-count indictment today against Carlos Cortez, 29, and Ismael Rameriz, 24, charging them with conspiracy to distribute marijuana and manufacture of marijuana, United States Attorney Benjamin B. Wagner announced.

According to court documents, in June 2014, during an aerial flight, deputies of the Tehama County Sheriff’s Office saw a large marijuana cultivation site near North Fork Antelope Creek, in Tehama County In the Lassen National Forest.

On July 11, 2014, a multiagency taskforce searched the marijuana cultivation site. Before they entered the site, agents saw Cortez and Rameriz watering marijuana plants. When agents entered, Cortez and Rameriz fled, but were quickly captured. A total of 6,636 marijuana plants were seized and destroyed at the cultivation site.

This case was the product of an investigation by the Tehama County Sheriff’s Office, the United States Forest Service, and California Department of Fish and Wildlife. Assistant United States Attorney Olusere Olowoyeye is prosecuting the case.

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

SACRAMENTO, Calif. — A federal grand jury returned an eight-count indictment today against Sergey Shchirskiy, 38, of Carmichael, and Vladislav Atamanyuk, 27, of Rancho Cordova, charging them with conspiracy to defraud the United States and aggravated identity theft, United States Attorney Benjamin B. Wagner announced.

According to court documents, the defendants conspired to file multiple fraudulent tax returns using other people’s identities. The returns falsely claimed refunds based on fraudulently reported income and the Earned Income Tax Credit. The defendants caused the fraudulent refunds to be directly deposited into bank accounts that they controlled.

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

If convicted, the defendants face a maximum statutory penalty of 10 years in prison for the conspiracy, and a mandatory two years in prison for identity theft, as well as a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

FRESNO, Calif. — A federal grand jury returned a five-count indictment today against Edgardo Fournier, aka Edgardo Fournier-Nigaglioni, 45, of Perris, charging him with conspiring to manufacture, distribute, and possess with intent to distribute marijuana, manufacturing marijuana, possessing marijuana with intent to distribute, damaging public land and natural resources, and setting timber afire, announced United States Attorney Benjamin B. Wagner and Forest Service Special Agent in Charge of the Pacific Southwest Region Scott Harris.

According to court documents, on July 11, 2014, Fournier was involved in the cultivation of 2,090 of marijuana plants in the Smith Canyon area of the Sequoia National Forest. He started several fires while leaving the marijuana cultivation site. The fire, which became known as the Nicolls Fire, was located in the Scodie Mountains, within the federally designated Kiavah Wilderness Area. The fire damaged about 1,680 acres of public land and will cost taxpayers millions of dollars.

When Forest Service agents went to the cultivation site, they eradicated 2,090 marijuana plants and seized rounds of ammunition. The marijuana cultivation operation caused significant damage to the land and natural resources of the forest.

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

Fournier is in custody as a flight risk and danger to the community and is scheduled for arraignment on July 28, 2014.

If convicted of the drug offenses, Fournier faces a statutory penalty of 10 years to life in prison and a $10 million fine. For damaging public lands and resources, Fournier faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. For causing the Nicolls Fire, Fournier faces a maximum statutory penalty of five years in prison and a fine of $250,000. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — After a six–day trial in a mortgage fraud case, a federal jury found Leonard E. Williams, 52, of Sacramento, guilty today of conspiracy to commit mail and wire fraud and two counts of money laundering, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge William B. Shubb.

According to evidence presented at trial, from late 2006 into 2008, Williams conspired with others to carry out a mortgage fraud scheme in the Chico and Sacramento areas using his companies Diamond Hill Financial and Bay Area Real Estate Holdings. The scheme resulted in the issuance of more than $2 million in home loans, with most of the buyers ultimately defaulting.

To carry out the scheme, Williams and his partner Joshua Clymer recruited underqualified buyers, including family and friends, to purchase homes with promises of cash back, no money down, and illusory equity in the homes. Williams and his co-conspirators assisted these home buyers in securing loans with fraudulent loan applications that contained lies about the buyers’ employment, income, assets, and intent to occupy the homes as a primary residence. In most cases, at Williams’ suggestion and encouragement, the loan applications falsely stated that the buyers worked at Diamond Hill Financial, and Williams himself maintained the charade by confirming this false information when lenders called to verify it.

The loan applications also listed false assets and were accompanied by various forged documents, including altered bank statements, fake W-2s, fake paystubs, and false gift letters and affidavits. Williams and his coconspirators also misled lenders about the true purchase price of the homes by fraudulently indicating down payments were made when in fact they were not, and giving cash back to buyers outside of escrow, without disclosing these facts to the lenders. These lies had the effect of increasing the amount of the loans to the buyers, which in turn increased the profits of the fraud to Williams, Clymer, and others. The profit to Williams and Clymer varied from $5,000 to over $30,000 per transaction, with the two of them often splitting the proceeds.

 “Fraud like that committed by Williams and his co-conspirators was an unnecessary contributor to the financial crisis that had such a serious impact on our country, and our communities in Northern California in particular,” said United States Attorney Wagner. “Even though the flood of foreclosures resulting from that crisis has started to subside, this conviction is evidence of the continuing commitment by my office and our federal and local law enforcement partners to hold accountable those who sought to profit by engaging in mortgage fraud.”    

“Victims of mortgage fraud may include the banks that loan the money, but also include all homeowners and would-be homeowners who end up paying for this type of fraud,” said José M. Martínez, Special Agent in Charge, IRS-Criminal Investigation. “IRS-CI is committed to pursuing those who line their pockets with profits from these schemes.”

Judge Shubb remanded Williams into custody pending sentencing. Prior to trial, co-defendant Joshua Clymer pleaded guilty to conspiracy to commit mail and wire fraud and awaits sentencing.

This case is the product of an investigation by the Federal Bureau of Investigation, Internal Revenue Service, Criminal Investigations, and the Butte County District Attorney’s Office’s Major Crimes Unit. Williams is the last of 14 defendants who have been convicted of mortgage fraud offenses in connection with this and related cases. Others who already been convicted and sentenced include William E. Baker, Shane Burreson, Christopher M. Chiavola, Carlos Chamorro, Eric Clawson, Niche Fortune, Garret Gililland, Kesha Haynie, Remy Heng, Nicole Magpusao, Brandon Resendez, and Anthony Symmes. Twelve of the defendants pleaded guilty. Juries have convicted the two defendants who went to trial, Williams and Haynie. Assistant United States Attorneys Christopher S. Hales and Audrey B. Hemesath are prosecuting the case.

Williams is scheduled to be sentenced by Judge Shubb on October 27, 2014. Williams faces a maximum statutory penalty of 20 years in prison for conspiracy to commit mail and wire fraud, and 10 years in prison and a $250,000 fine for each count of money laundering. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. —Marquist Piere Bradford, 28, of Chicago, pleaded guilty today to sex trafficking of children by force, United States Attorney Benjamin B. Wagner announced.

According to court documents, in early 2012 Bradford recruited a 15-year-old girl to travel from Fresno to Sacramento where she was used by Bradford as part of a prostitution business from January 19 through February 5, 2012. According to court documents, Bradford maintained an apartment in Rancho Cordova, which he used as a base of operations for a prostitution business that spanned the Sacramento and Bay areas, as well as cities outside California. At least two of Bradford’s victims were under the age of 18. Bradford fled from Sacramento to the Chicago area after law enforcement recovered the victim in this case.

This case was the product of an investigation by the Sacramento County Sheriff’s Office and the Sacramento FBI Innocence Lost Task Force. Assistant United States Attorney Matthew G. Morris is prosecuting the case.

Bradford has remained in custody since his arrest in Springfield, Ill. in April 2012. He is scheduled to be sentenced by United States District Judge Morrison C. England, Jr. on October 23, 2014. Bradford faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

SACRAMENTO, Calif. — United States District Judge Kimberly J. Mueller sentenced Otto Godinez-Sales, 22, of San Jose, today to four years in prison for conspiracy to commit criminal copyright infringement, United States Attorney Benjamin B. Wagner announced.

According to court documents, Godinez-Sales maintained a number of warehouses in the San Jose area where he sold CDs and DVDs containing counterfeit music and movies. The music and movies on the CDs and DVDs were protected under United States copyright laws. In many instances, the copyrighted movies being trafficked by the defendants were still in theatrical release and not yet available for purchase in the home DVD market. Co-defendants Francisco Martinez-Cruz, 34, of Orland, and Soledad Garcia-Venegas, 32, of Orland, were customers at his San Jose warehouses, and they would transport the CDs and DVDs to sell at the Gonzalez Flea Market in Glenn County and the Marysville Flea Market in Yuba County. Over the course of the conspiracy, Martinez-Cruz and Garcia-Venegas were responsible for trafficking approximately 25,000 CDs or DVDs containing counterfeit copyrighted works. Martinez-Cruz was sentenced to 21 months in prison, and Garcia-Venegas was sentenced to 18 months in prison.

“This case is a testament to the success of multi-jurisdictional investigations and task force partnerships. A thorough investigation through collaboration revealed Godinez-Sales’ role in this scheme and identified his network of warehouse facilities. His criminal enterprise distributed thousands of counterfeit CDs and DVDs that were sold to unsuspecting customers throughout Northern California,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento division. “Consumers are urged to question the authenticity of all high-demand products offered at significantly reduced prices. As in this case, such goods were counterfeit items produced by criminal enterprises who benefited from trusting consumer who were misled to believing the products were legitimate.”

This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Valley Hi-Tech Crimes Task Force, which combines the efforts of 32 local, state, and federal law enforcement agencies in the Eastern District of California. Assisting in this case were the Sacramento Intellectual Property Rights Task Force, Rapid Enforcement Allied Computer Team of San Jose, Sacramento County Sheriff’s Office, Marysville Police Department, Glenn County Sheriff’s Office, and the Glenn County District Attorney’s Office. Assistant United States Attorney Matthew G. Morris is prosecuting the case.

SAN JOSE, Calif. — A federal grand jury in San Jose returned a three-count indictment against Quan Pham Howard, 51, of San Jose, charging him with possession of stolen U.S. mail, delay and destruction of U.S. mail, and possession with intent to distribute marijuana, United States Attorney Benjamin B. Wagner announced.

According to court documents, Howard was a Supervisory Postal Inspector working at the San Jose Processing and Distribution Center. On June 26, 2014, following an investigation and the execution of a search warrant at his house and office, Howard was arrested and charged with theft of mail.

According to the indictment, between April 9, 2012, and June 25, 2014, Howard unlawfully opened and secreted United States mail intended for various victims and including, among other things, quantities of prescription drugs.  The indictment charges him with possessing a variety of items that had been stolen from the mail distribution center including: a gun scope, a silver bar, jewelry, coins, gift cards, a gun silencer, a Rolex watch and other items.  Howard is also charged with possessing over 8 kilograms of marijuana with the intent to distribute.

This case is being tried in San Jose by the Eastern District of California. It is the product of an investigation by the United States Postal Service Office of Inspector General. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.

Howard is scheduled for arraignment on August 1, 2014. If convicted, Howard faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — After a three–day trial, a federal jury found John Winton Harris, 31, of Sacramento, guilty today of one count of possession of at least 29 grams of cocaine base, commonly referred to as crack cocaine or rock cocaine, United States Attorney Benjamin B. Wagner announced. The trial was held before United States District Judge Morrison C. England Jr.

According to evidence presented at trial, Sacramento police officers responded to a domestic violence complaint at an apartment complex in Sacramento. When the officers entered the apartment, they found Harris crouched in the kitchen area. He was moved to a different location in the apartment, and when officers found a large amount of cocaine base where he had been crouching in the kitchen, Harris attempted to flee. Harris claimed he did not live in the apartment, but officers found mail addressed to him at that address, as well as other personal items belonging to him in the apartment. Harris’s cellphone revealed photographs of Harris in the same apartment with a large amount of currency only days before, as well as text messages indicating he was involved in the distribution of cocaine base that very week.

This case is the product of an investigation by the United States Drug Enforcement Administration and the Sacramento Police Department. Assistant United States Attorneys Todd Pickles and Chris Highsmith are prosecuting the case.

Harris remains in custody pending sentencing.

Harris is scheduled to be sentenced by Judge England on October 23, 2014. Harris faces a maximum statutory penalty of 40 years in prison and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. — Israel Garrido-Hernandez, 24, of Fresno, was sentenced Monday by United States District Judge Lawrence J. O'Neill to four years and nine months in prison for possession of methamphetamine with intent to distribute and possession of document-making implements, United States Attorney Benjamin B. Wagner announced.

According to court documents, in April 2013, Garrido-Hernandez possessed with the intent to distribute methamphetamine. Between January and April 2013, he possessed equipment to make false documents that appeared to be made under the authority of the United States, such as false legal permanent resident cards (“green cards”) and false Social-Security cards.

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

FRESNO, Calif. — Former IRS employee Viririana Hernandez, 30, was arrested this morning at her mother’s home in Parlier, charged with an identity theft conspiracy that used information stolen from the files of other IRS employees, United States Attorney Benjamin B. Wagner announced.

Co-defendants Roberto Martinez, 33, and Lilliana Gonzalez, 32, both of Fresno, were also arrested at their residence this morning. All three defendants were arraigned today and entered pleas of not guilty. Martinez was released from custody with electronic monitoring. Hernandez and Gonzalez remain in custody and have a detention hearing on Thursday, July 24, 2014. Arraignment for a fourth defendant, Daniel Miranda, 25, has not yet been scheduled.

On July 18, 2014, a federal grand jury in Fresno returned a 23-count indictment, charging the defendants with conspiracy, bank and wire fraud, and aggravated identity theft. Miranda was also charged with mail fraud.

According to the indictment, from June 2012 to January 2014, the four conspirators obtained personal information from victims through various methods. Hernandez worked for the IRS since 2006 and had access to the personal information of IRS workers. Several of the victims are current or former IRS workers. Without the victims’ permission, they opened credit card accounts in the victims’ names or added themselves as “authorized users” of the victims’ existing accounts. The conspirators then used the accounts to buy goods and services at locations throughout the Fresno area, as well as in Modesto and Riverside County. In total, it is alleged that the four conspirators misused the personal information of approximately 160 victims and attempted fraudulent credit card charges of more than $1.2 million.

San Francisco Division Inspector in Charge Rafael Nunez of the U.S. Postal Inspection Service stated: “We are working closely with the U.S. Attorney’s Office and our partners in law enforcement to arrest and prosecute those responsible for using mail delivery for a fraud scheme.”

Treasury Inspector General for Tax Administration San Francisco Field Division Special Agent-in-Charge Rod Ammari stated: “Identity theft is a nationwide crisis that places a heavy burden on the victim and creates chaos in the victims’ lives. When an IRS employee is involved in stealing information through their employment at the IRS and facilitating identity theft rings, it will not be tolerated and the Treasury Inspector General for Tax Administration will use all its power and resources to ensure these criminals are brought to justice.”

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

If the defendants are convicted, they each face a maximum statutory penalty of 30 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

FRESNO, Calif. — Heath Lee Roberson, 39, of Modesto, was sentenced today to two years and nine months in prison by Senior United States District Judge Anthony W. Ishii, for conspiring to submit false claims to the IRS, United States Attorney Benjamin B. Wagner announced. Roberson was also ordered to pay over $66,322 in restitution to the IRS.

According to court documents, from December 2010 to May 2011, Roberson and a co-defendant obtained personal identifying information from more than 40 individuals, used the information to generate false tax returns and submitted them to the IRS. Any tax refunds that they received were deposited into accounts the defendants controlled.

This case was the product of an investigation by the Internal Revenue Service Criminal Investigation. Assistant United States Attorney Michael G. Tierney prosecuted the case.

FRESNO, Calif. — Kwan Yong Choi, 72, of Fresno, was sentenced today by United States District Judge Anthony W. Ishii to three years in prison for money laundering, United States Attorney Benjamin B. Wagner announced. Choi was also ordered to pay $2.1 million in restitution to 13 victims of his investment fraud scheme here in the United States.

On June 10, 2006, Choi was arrested in Fresno based on an extradition order from the Republic of Korea for a fraud scheme he had perpetrated there. Choi waived extradition and was returned to Korea in June 26, 2006, where he served four years in prison for fraud, marriage fraud and visa fraud. On May 27, 2010, a federal grand jury in Fresno returned a six-count indictment against Choi charging him with money laundering related to a fraud scheme that targeted elderly Korean nationals living in the United States. Federal agents escorted Choi back to Fresno after he finished serving his sentence in South Korea.

“The reality that this fraudster faces a lengthy term in federal prison should provide a measure of consolation for the defendant’s victims, some of whom lost their life saving as a result of his scams,” said Nick Annan, acting special agent in charge for Homeland Security Investigations San Francisco. “Today’s sentencing is particularly gratifying, given that it’s the culmination of seven years of intensive investigation carried out on two continents.”

According to court documents, in 2002, Choi, formerly of Daejeon City, South Korea, began marketing an investment scheme whereby investors could invest money into his company, Sun Min Trading Inc. Choi told investors that the company bought souvenirs and sold them to the White House. He claimed that the venture would make 30 percent profit with 10 percent going to a purported charity named “International Christian Mission Center,” and 20 percent going to investors every quarter. He specifically targeted persons of Korean descent and marketed investment opportunities to potential clients in California and elsewhere by making various false representations, including that the “International Christian Mission Center” was an extension of the CIA, that he was an ordained minister, that he had a history of investment successes, and that the investments were secure.

Instead of investing the money as promised, Choi spent the funds on his own personal and business expenses, including payments for homes, cars, and credit card bills. He lulled investors into thinking that their investments were making a return by sending false account statements, sending payments, or giving excuses as to why payments were delayed. As a result of the scheme, investors lost more than $2 million.

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Fresno-based HSI special agents received substantial assistance from HSI’s attaché office in Seoul as well as from the Republic of Korea’s Ministry of Justice. Assistant United States Attorneys Mark E. Cullers and Heather M. Jones prosecuted the case.

FRESNO, Calif. —Enrique Reynosa, 37, pleaded guilty today to possessing with intent to distribute methamphetamine and cocaine, according to United States Attorney Benjamin B. Wagner.

According to court documents, Reynosa was stopped on Highway 99, south of State Route 119, for a traffic violation. Six pounds of methamphetamine, eight pounds of cocaine, and $1,510 were found inside the car after Reynosa provided consent to search the vehicle. As part of the guilty plea, Reynosa agreed to forfeit the 2008 Chevrolet Silverado 150 Crew Cab he was driving and $1,510 in cash seized during the vehicle stop.

Reynosa is scheduled for sentencing on September 29, 2014, before Senior U.S. District Judge Anthony W. Ishii. Reynosa faces 10 years to 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.

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

FRESNO, Calif. — Two men were sentenced today for their convictions in separate child exploitation cases, United States Attorney Benjamin B. Wagner announced.

Case 1:12-cr-383-AWI
Senior United States District Judge Anthony W. Ishii sentenced Luis Alfredo Espinoza, 24, of Riverdale, to nine years in prison, to be followed by 15 years of supervised release, for receipt and distribution of child pornography.

According to court documents, investigators determined that Espinoza was making child pornography available through a file-sharing program. When a search warrant was executed at his residence on November 5, 2012, his computer contained at least 191 still images and 260 video images of minors being sexually abused. Some of the victims were under five years old, and several images depicted violence, bondage, or other sadistic or masochistic conduct. Espinoza admitted that he had used different file-sharing programs to access child pornography for many years. While Espinoza is on supervised release, his access to minors, computers, and the Internet will be restricted. He has been in custody since he pleaded guilty on April 28, 2014.

This case was the result of an investigation by the Fresno office of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).

Case 1:14-cr-053-LJO
United States District Judge Lawrence J. O’Neill sentenced Lorenzo Hernandez Martinez, 37, of Bishop, to 18 months in prison, to be followed by 36 months of supervised release, for attempted transfer of obscene material to a minor.

According to court documents, Martinez communicated through Facebook chats from mid-October 2013 through February 2014 with someone whom he believed to a 14 year-old female in Oregon. Martinez quickly turned the communications in a sexual direction, and he repeatedly transmitted explicit images. In fact, Martinez was communicating with an undercover detective in Corvallis, Oregon. The Corvallis Police Department worked with the Bishop Police Department and the Bakersfield FBI office to identify Martinez. When a search warrant was executed at his residence on March 11, 2014, agents seized a cellphone that contained communications with the undercover detective in Oregon as well as sexually explicit images that Martinez said he had transmitted to minors, including a minor female in China. Because he has resided in the United States without legal authorization for the past 18 years, Martinez also agreed not to challenge his removal from the United States.

Assistant United States Attorney David Gappa prosecuted both cases. They have been 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.

BAKERSFIELD, Calif. — Miguel Antonio Ruiz Jaramillo, 67, of Bakersfield, was sentenced today by United States District Judge Lawrence J. O’Neill to one year in federal prison and was ordered to pay $91,527 in unpaid federal taxes, U.S. Attorney Benjamin B. Wagner announced. Jaramillo was also ordered to perform 600 hours of community service.

According to court documents, from January 2010 through July 2012, Jaramillo cashed more than fifty checks in amounts of $10,000 or less at Valley Republic Bank located in Bakersfield, totaling more than $420,000. Jaramillo had the checks cashed in this manner to prevent, or attempt to prevent, the bank from filing a Currency Transaction Report on those transactions. He did not want a CTR filed because for the years 2010 and 2011, he did not declare the structured cash transactions as income on his federal tax returns.

This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation and the Bakersfield Police Department under the auspices of the Central California Financial Crimes Task Force (CCFCTF), which is dedicated to investigating and prosecuting money laundering and Bank Secrecy Act crimes in the San Joaquin Valley. CCFCTF is composed of special agents from the Internal Revenue Service, Criminal Investigations (IRS-CI), Homeland Security Investigations (HSI), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bakersfield Police Department, and the Fresno Police Department. Assistant United States Attorneys Grant B. Rabenn and Patrick Delahunty prosecuted the case.

Jaramillo was ordered to self-surrender in sixty days.

FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Manuel Riviera-Felix, a.k.a. Felipe Garcia, 26, , Edi Vega Bustamante, 21, and Juan Angel Lopez, 32,  charging all three with conspiracy to distribute and possess with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced .  Riviera-Felix and Bustamante are also charged separately in two counts with distribution of methamphetamine and Lopez alone is charged in a separate count with possession with intent to distribute methamphetamine.  All three defendants are residents of Bakersfield, CA.

According to court documents, the three men conspired to distribute over 500 grams of methamphetamine.

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

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

SACRAMENTO, Calif. — Dignity Health, California’s largest hospital provider and the country’s fifth largest health system, has agreed to pay the United States $1.55 million to settle claims of deficiencies regarding the handling of controlled substances at its hospitals and clinics, United States Attorney Benjamin Wagner announced today.  Dignity Health will pay $1,250,000 immediately, and the remaining $300,000 will be deferred pending Dignity Health’s compliance over the next two years with a detailed action plan.

The payment and action plan resolve the United States’ claims that Dignity Health facilities in the Sacramento area failed to properly record hundreds of transactions involving controlled substances in violation of the Controlled Substances Act (CSA) and its implementing regulations, and had insufficient compliance procedures and controls regarding the distribution of controlled substances.  The action plan agreed to by Dignity Health is designed to advance the health system’s ability to meet its record-keeping requirements and its ability to detect and prevent diversion in its prescription drug-dispensing operations. 

The DEA commenced its investigation of Dignity Health following reported losses of over 20,000 tablets of hydrocodone from the outpatient pharmacy at St. Joseph’s Medical Center in Stockton, CA in late 2010 and 2011.  A 2011 audit conducted by the DEA at the pharmacy revealed significant shortages of a number of the controlled substances evaluated, including most strengths of hydrocodone, a Schedule III opioid analgesic narcotic sold in tablet form.  Hydrocodone is highly addictive and often diverted to the black market from legitimate sources.  The DEA’s subsequent investigation revealed that several Dignity Health locations were failing to keep accurate records under the laws designed to safeguard the public against diversion of the most abused classes of legally manufactured and prescribed drugs. 

Since the DEA’s investigation, Dignity Health executive leadership has worked cooperatively with the DEA and the U.S. Attorney’s Office to develop a detailed action plan to address the identified deficiencies in Dignity Health’s handling of controlled substances by instituting an overhauled CSA compliance regime.  Components of the action plan include: annual external audits of CSA compliance, with results to be reported to the DEA; keyless entry systems installed at Dignity Health locations to monitor and restrict access to areas containing controlled substances; increased physical counts and inventories of controlled substances to quickly identify discrepancies; monthly certifications that record-keeping requirements are met; and annual CSA compliance training for Dignity Health employees who handle controlled substances.

“The abuse of hydrocodone and other painkillers has become an epidemic,” said United States Attorney Wagner.  “The CSA created a ‘closed system’ of controlled substance distribution so the DEA can better monitor the movement of prescription drugs to end users.  This system reduces the opportunity for diversion of drugs that can have a useful and legitimate medical purpose for those lawfully consuming them.  Unfortunately, however, if hospitals and pharmacies are lax in their record-keeping or supervision of their drug-dispensing operations, opportunities arise for the diversion of powerful drugs to unintended users who may be injured by them.  We will continue to work with our law enforcement partners to investigate and prosecute these cases.”

“Healthcare providers have an obligation to protect public health.  Keeping accurate records and restricting access to controlled substances are key in fulfilling that responsibility,” stated DEA Special Agent in Charge Jay Fitzpatrick.  “This significant civil penalty underscores DEA’s commitment in the fight against prescription drug abuse by holding companies accountable, regardless of their size.”

Assistant United States Attorney Colleen M. Kennedy prosecuted the case.

FRESNO, Calif. — A federal grand jury returned a two-count indictment today against two San Francisco residents, charging them with conspiracy and marijuana cultivation, United States Attorney Benjamin B. Wagner announced.

According to court documents, Jimmy Gong Yan Lee, 54, and Wei Jin Huang, 53, were discovered cultivating approximately 2,500 marijuana plants in two dwellings in the town of Mariposa in Mariposa County. On April 14, 2014, Mariposa County Sheriff’s Deputies executed a search warrant and discovered 874 marijuana plants in one building that was devoted entirely to the cultivation of marijuana. A large generator was supplying power to the second building, a house where the bottom level and garage had been dedicated to solely growing marijuana. Lee and Huang were arrested as they exited this residence.

This case is the product of an investigation by the Mariposa County Sheriff’s Office. Assistant United States Attorney Kathleen A. Servatius is prosecuting the case.

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

SACRAMENTO, Calif. — Phillip J. Colwell, 54, of Sacramento, was sentenced today by United States District Judge Troy L. Nunley to 30 years in prison for producing child pornography, transmitting obscene matter to a minor, and using a cellphone to entice a minor to engage in unlawful sexual conduct, United States Attorney Benjamin B. Wagner announced.

Colwell pleaded guilty in April 2012. According to the guilty plea, Colwell engaged in a series of cellphone text conversations with a 14-year-old Sacramento boy to whom he sent sexually explicit images and with whom he sought to engage in sexual conduct. Colwell encouraged him to produce sexually explicit images of himself to send to Colwell. In July 2011, Colwell engaged in sex acts with a 16-year-old Sacramento boy, and took sexually explicit photos of him. Colwell then uploaded the photos to a website in order to promote the commercial sex trafficking of the boy.

In sentencing Colwell to 30 years, Judge Nunley stated “You are a predator. You prey on young boys.”

This case was the product of an investigation by the FBI’s Sacramento-based Innocence Lost Task Force, the Sacramento Police Department, and the Sacramento County District Attorney’s office. Assistant United States Attorney Matthew G. Morris prosecuted the case.

“Our agents and fellow Innocence Lost Task Force members bravely face the challenge of identifying and investigating individuals who seek to exploit a child’s innocence.  In this case, Colwell used a mobile phone and the internet to lure and exploit children,”  said Special Agent in Charge Monica M. Miller of the Sacramento division of the Federal Bureau of Investigation. “Colwell’s sentencing is an opportunity to remind all parents and guardians to monitor the text and online activity of each child and to reach out to law enforcement for help immediately if predatory activity is discovered or suspected. “

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. — Richard Lee Gray, 57, of Foresthill, was sentenced today by United States District Judge Troy L. Nunley to one year in prison for destroying U.S. Post Office letter boxes, being a felon in possession of ammunition, and possessing over 15 unauthorized access devices with intent to commit fraud, United States Attorney Benjamin B. Wagner announced. Judge Nunley ordered Gray to pay $10,333 in restitution to the United States Postal Service.

This case was the product of an investigation by the United States Postal Inspection Service and the Placer County Sheriff's Office, with the assistance of the United States Forest Service. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.

According to court documents, between January 2013 and April 2013, Gray pried open more than 20 post office letter boxes in the Placer County towns of Colfax, Auburn, and Foresthill. On April 2, 2013, a federal search warrant was executed at Gray's residence. In the house and in his car, officers found mail stolen from more than 108 victims. Gray also possessed burglary tools, pry bars, and ammunition.

SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today against a Seattle man who was serving a federal prison sentence in the Federal Correctional Institution Herlong in Lassen County, United States Attorney Benjamin B. Wagner announced.

Roderick Earl Vanga, 32, is charged with escape from custody. According to court documents, Vanga was serving a seven-year sentence for a drug offense when he escaped on April 5, 2013. He was apprehended on February 23, 2014, in Seattle and remains in custody.

This case is the product of an investigation by the U.S. Marshals Service, the King County (Wash.) District Attorney’s Office, and the police departments of Seattle and Renton. Assistant United States Attorney William Wong is prosecuting the case.

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

FRESNO, Calif. – Monica Nanette Hernandez, 41, of Fresno, was sentenced on Monday by United States District Judge Anthony W. Ishii to four years and five months in prison for filing false tax returns, wire fraud, and aggravated identity theft, United States Attorney Benjamin B. Wagner announced. Judge Ishii also ordered Hernandez to pay $175,144 in restitution.

According to court documents, Hernandez worked for the IRS Service Center in Fresno as a part-time data entry clerk. While employed in that capacity, Hernandez filed three tax returns for herself claiming excessive federal tax withholdings based on falsely claimed interest and dividend income. Because of these fraudulent returns, Hernandez obtained more than $175,000 in refunds from the IRS.

In addition, in April 2010, Hernandez stole 68 tax returns from the IRS Service Center that had not yet been entered into the IRS’s computer system. She electronically filed fraudulent tax returns for her own benefit using the identification information of some of these taxpayers in which she claimed excessive federal tax withholdings from dividends and interest income. In total, Hernandez attempted to claim more than $1,745,000 in fraudulent tax refunds through the returns she filed using other taxpayers’ personal information.

“Identity theft is an epidemic that has hit the American people hard, and having an Internal Revenue Service employee involved in such criminal activity erodes the public trust in government institutions, especially the IRS,” said Rod Ammari, Special Agent in Charge, San Francisco Field Division, Treasury Inspector General for Tax Administration. “TIGTA and its law-enforcement partners will actively investigate IRS-related identity theft cases, and will do everything within its powers to ensure those involved will be prosecuted to the fullest extent of the law.”

This case was the product of an extensive investigation by the Internal Revenue Service, Criminal Investigation and the Treasury Inspector General for Tax Administration. Assistant United States Attorneys Grant B. Rabenn and Christopher D. Baker prosecuted the case.

SACRAMENTO, Calif. — U.S. District Judge John A. Mendez sentenced the former owner and president of WECO Aerospace Systems Inc. today to two and a half years in prison, United States Attorney Benjamin B. Wagner announced.

On November 4, 2013, after a three-week trial, a federal jury found William Hugh Weygandt, 64, of Granite Bay, guilty of conspiracy to commit fraud involving aircraft parts repair. A hearing to determine restitution is scheduled for September 16, 2014 at 1:30 p.m. Judge Mendez ordered Weygandt to surrender to begin serving his sentence on September 23, 2014.

At sentencing, Judge Mendez stated: “The jury verdict, conviction, and evidence demonstrated that Weygandt was the leader of a company engaged in fraud over a number of years. … He had the ability to stop the fraud. … This was, remains, and will always be a serious offense.”

WECO was a Federal Aviation Administration-certified repair business with facilities in Lincoln and Burbank, Calif. Weygandt began working for WECO upon its founding in 1974 by his father. By 2005, he was the president and sole owner. In January 2007, Weygandt sold the 75-employee company to Gulfstream Aerospace Corporation for approximately $17 million, and remained as president of the company until February 1, 2008.

According to evidence presented at trial, WECO was permitted by the FAA to repair certain types of aircraft parts, including starter generators and converters, used on various types of aircraft, including small helicopters used by tour companies and law enforcement agencies.

Evidence at trial established that WECO employees at both its Lincoln and Burbank repair stations regularly failed to follow FAA regulations in repairing and overhauling the aircraft parts. In many cases, WECO did not even have equipment capable of performing required tests. WECO employees at both locations nonetheless performed repairs and returned parts to customers, falsely certifying that the parts had passed tests and had been repaired in accordance FAA standards. The evidence at trial showed that in spite of being aware of the lack of testing equipment at the Burbank facility since 1985 and at the Lincoln facility since the mid-1990s, Weygandt allowed repairs to continue and failed to respond to repeated requests from employees for the equipment necessary to perform repairs and overhauls in accordance with the FAA requirements.

“Federal aircraft part repair regulations are intended to promote aircraft safety,” said U.S. Attorney Wagner. “William Weygandt allowed his company to circumvent those regulations for profit. The sentence imposed today reflects the seriousness of the crime. FAA part repair regulations are not advisory, and those who ignore them do so at their peril.”

“The sentencing today of the former owner and president of WECO Aerospace Systems Inc., William Hugh Weygandt, clearly demonstrates the severe penalties that await those who would seek to certify the repair and overhaul of aircraft parts illegally,” said William Swallow, Department of Transportation (DOT) Office of Inspector General (OIG) Regional Special Agent-in-Charge. “Safety of the Nation’s air transportation system remains a priority of DOT and the OIG. Working with our law enforcement and prosecutorial colleagues, we will continue our vigorous efforts to uncover suspect unapproved parts, prevent their use, and punish to the fullest extent of the law those who would seek to compromise the integrity of DOT’s safety programs.”

“This is a straightforward case in which Weygandt’s greed eclipsed his responsibility to ensure his crews had the necessary equipment to properly perform and certify repairs. His egregious and willful disregard of proper procedure and law jeopardized the lives and safety of pilots, passengers, and the unsuspecting public. We are all fortunate an accident did not occur,” said Special Agent in Charge Monica M. Miller of the Federal Bureau of Investigation’s Sacramento division. “The FBI and our law enforcement partners are committed to identifying and thoroughly investigating anyone who intentionally circumvents safety regulations and laws to enhance profitability.”

This case is the product of an investigation by the Inspector General for the Department of Transportation, and the Federal Bureau of Investigation, along with the Inspectors General of the Department of Homeland Security, and Department of Defense. Assistant U.S. Attorneys Kyle Reardon and Michele Beckwith prosecuted the case.

There have been no known instances in which a fraudulent WECO repair resulted in an aircraft accident. However, multiple aircraft operators testified at trial that had they known that WECO had not properly repaired their parts, they would not have used them. According to former FAA Official Anthony Broderick, a defense witness at the trial, FAA regulations like the ones implicated in this case are intended “to promote safety of flight in civil aviation in the United States.” Upon learning of the allegations, the FAA issued an emergency order suspending WECO’s repair station certificate. In addition, since finalizing its purchase of WECO in 2008, Gulfstream fully cooperated with the FAA, as well as law enforcement in the investigation and prosecution of this case.

Former WECO executives Jerry Edward Kuwata, 60, of Granite Bay; Michael Dennis Maupin, 58, of Arbuckle; and Anthony Vincent Zito, 47, of Saugus, previously pleaded guilty to federal offenses in connection with the conspiracy and await sentencing.

SACRAMENTO, Calif. — Former Sierra Army Depot employee Tony Herrin, 36, of Reno, Nev., was arrested on Monday for conspiracy to steal and sell government property and theft and sale of government property, United States Attorney Benjamin B. Wagner announced.

On Thursday, July 3, 2014, a federal grand jury returned a two‑count indictment alleging that between January and April 2013, Herrin and co-conspirator Devon Biggs, civilian employees at the Sierra Army Depot (SIAD) in Lassen County, conspired to steal and sell United States military equipment from SIAD.

According to the indictment, on numerous occasions Herrin and Biggs removed U.S. military equipment from SIAD buildings, adjusted item codes in the computer database to conceal their thefts and arranged to sell the equipment to various buyers. On one occasion, they loaded a military vehicle with equipment stolen from SIAD, drove the vehicle from SIAD to a parking lot just outside the SIAD gate, and sold the equipment to an individual whom they had arranged to meet.

Herrin made an initial appearance in Reno on Monday and is scheduled to be arraigned on July 14, 2014. Biggs was charged in a separate indictment on May 5, 2013, and is scheduled to appear in district court for a status conference on September 17, 2014.

This case is the product of an investigation by the Law Enforcement Division of the United States Army and the Federal Bureau of Investigation. Assistant United States Attorneys Jean M. Hobler and Christiaan Highsmith are prosecuting the case.

If convicted, Herrin faces a maximum statutory penalty of five years in prison and a $250,000 fine on count one and 10 years in prison and a $250,000 fine on count two. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

FRESNO, Calif. — Terrill Eugene Brown, 61, of Visalia, pleaded guilty today to 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 agreed 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.

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.

This case is 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 is being prosecuted by Nathan Lambert, a Fresno County Deputy District Attorney sworn in as a Special Assistant U.S. Attorney for the case, and Assistant United States Attorneys Kathleen A. Servatius, Laurel J. Montoya, and Heather M. Jones.

Brown will remain out of custody until his sentencing date. He is scheduled to be sentenced by Judge Lawrence J. O'Neill on September 22, 2014. Brown faces a maximum statutory penalty of 20 years in prison and a $1 million fine for illegally causing the dispensing of a controlled substance, and a maximum sentence of 10 years and a $500,000 fine for structuring currency transactions to avoid a reporting requirement. 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 being 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 in an indictment that alleges that 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 by offering them payments in return 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 have been sentenced as follows:

David Ruem, of Tacoma, Wash.: 10 years and one month in prison

Phary Chim, of Kent, Wash.: four years and three months in prison;

Sdey Chim, of Modesto: three years and 10 months in prison;

Chanrath Yath, of Modesto: three years and four months in prison;

Phally Thach, of Modesto: two and a half years in prison;

Raeb Chou, of Modesto: two years in prison;

Cindy Doeum, of Kent, Wash.: three years of probation; and

Chantha Chim, of Murietta: three years of probation.

The charges against the remaining five defendants are pending. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. —Michael Chase Stafford, 29, of Modesto, was sentenced today by U.S. District Judge Lawrence J. O’Neill to two years and nine months in prison for conspiring to commit postal crimes, according to United States Attorney Benjamin Wagner.

According to court documents, Stafford conspired with others to steal mail from authorized U.S. mail receptacles and to possess stolen U.S. mail. From the stolen mail, they acquired credit cards, merchant cards and convenience checks, in addition to account numbers and personal identifiers of victims. They used these items to buy merchandise for themselves without authorization from the true account holders.

Co-defendant Dawn Renee Wessling was sentenced to 18 months in prison on January 22, 2013, for her role in the conspiracy.

This case is the product of an investigation by the United States Postal Inspection Service. Assistant United States Attorney Grant B. Rabenn is prosecuting the case.

FRESNO, Calif. — One marijuana cultivator pleaded guilty and one was sentenced today for cultivation operations in Kern and Stanislaus Counties, United States Attorney Benjamin B. Wagner announced.

8,876 Marijuana Plants and Illegal Pesticides Seized from Sequoia National Forest
(1:12-cr-184 AWI)

Hernan Cortez Villaseñor (Cortez), 40, of Michoacàn, Mexico, pleaded guilty to conspiring to manufacture, distribute and possess with intent to distribute marijuana, and distributing unregistered pesticides, in violation of the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA). In pleading guilty, Cortez also agreed to pay $3,328 to the U.S. Forest Service for the damage caused by his marijuana cultivation operation in the Greenhorn Creek area of the Sequoia National Forest.

According to court documents, the Greenhorn Creek site sustained extensive damage as a result of the cultivation activities. Native oak trees and other vegetation were cut down or otherwise killed to make room for the 8,876 marijuana plants planted there. The soil was tilled, and fertilizers and pesticides, including Fosfuro de Zinc, a common Mexican rat poison containing zinc phosphide, were spread throughout the site. Law enforcement officers also found 30 containers of Fosfuro de Zinc at Cortez’s residence in Arvin, Calif. after Cortez delivered supplies to the cultivation operation.The EPA has designated zinc phosphide as a restricted use pesticide, which means that it may only be purchased and used by, or under the supervision of, a certified applicator. Zinc phosphide is banned for residential sale due to its acute toxicity. A single swallow can be fatal to a small child.

Cortez is scheduled for sentencing on September 22, 2014. He faces a mandatory minimum prison term of 10 years and a maximum prison term of life for the drug conspiracy. The pesticide charge carries a maximum penalty of one year in prison and a fine of $100,000. 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. Upon completion of any prison term imposed, Cortez is subject to deportation to Mexico.

This case is 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), U.S. Environmental Protection Agency Criminal Investigation Division (EPA-CID), and the Kern County Sheriff’s Office.

907 Marijuana Plants Seized in Newman River Case (1:12-cr-342 AWI)

Symery Saykganya, 58, of Modesto, was sentenced to two years in prison for conspiring to manufacture, distribute and possess with intent to distribute marijuana following his guilty plea earlier this year. According to his plea agreement, Saykganya was found at a marijuana grow site in a rural area along the San Joaquin River in the vicinity of Newman. Drug agents also found and eradicated 907 marijuana plants that were irrigated by water diverted from the river. Agents also found purported medical marijuana recommendations posted at the site, along with a firearm.

The case was the product of an investigation by federal agents from the DEA and Stanislaus Drug Enforcement Agency, a multi-agency drug task force in Modesto.

Assistant United States Attorney Karen Escobar handled the above prosecutions.

SACRAMENTO, Calif. — Leo Martinez-Martinez, 36, of Stockton, was sentenced today by United States District Judge Troy L. Nunley to 10 years in prison for conspiracy to distribute and possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, between October 10, 2012, and January 15, 2013, undercover agents and officers conducted multiple separate buys of large quantities of methamphetamine from Martinez-Martinez in Stockton. Agents recovered approximately 1.5 pounds of methamphetamine during the course of the operation.

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

SACRAMENTO, Calif. — Elias Alvarez-Ramirez, 53, of Turlock, was sentenced today by Chief United States District Judge Morrison C. England, Jr. to 19 years and seven months in prison for conspiring to manufacture more than 15,000 marijuana plants and distributing approximately 3.5 pounds of methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, Alvarez-Ramirez was responsible for purchasing equipment and providing workers to plant and tend a 15,000 plant marijuana garden in Shasta County between April 28 and May 20, 2009. On May 14, 2009, Alvarez-Ramirez delivered a quarter pound sample of 100 percent pure methamphetamine to an undercover agent and a confidential informant. On May 20, 2009, Alvarez-Ramirez delivered approximately 3.5 pounds of 97.1 percent pure methamphetamine to an undercover agent.

This case was the product of an investigation by the US Drug Enforcement Administration, the North State Initiative Multi-jurisdictional Methamphetamine Team, California Department of Justice and the Shasta County Sheriff’s Office. Assistant United States Attorney Heiko P. Coppola s prosecuted the case.

FRESNO, Calif. — A grand jury in Fresno returned an indictment today against Michael Brandon Kiper, 29, of Lemoore, charging him with two counts of sexual exploitation of a minor and two counts of receipt of child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, Kiper, who had been assigned duties as a military policeman at the Lemoore Naval Air Station in California, and while on temporary assignments in Nevada and in Bahrain, used accounts on Kik Messenger, Instagram, and Facebook to solicit sexually explicit images of numerous minor females. Kiper used an alias and claimed to be an agent for a modeling agency. Once he convinced minor females to send him at least one sexually explicit image of themselves, he threatened to post those images to social media sites unless the victims produced and transmitted additional sexually explicit images. One minor female told her mother about her communications with Kiper, and they contacted law enforcement. Kiper was apprehended in Oklahoma and transported in military custody to San Diego. He has since been taken into federal custody, and a magistrate judge in San Diego has ordered him detained. He will appear in federal court in Fresno once he is transported from San Diego.

This case is the result of an investigation by the Naval Criminal Investigative Service, the Upper Perk (Pennsylvania) Police Department, and the Paoli (Indiana) Police Department. Forensic analysis of evidence is being conducted by the Kings County District Attorney’s Office which is part of the Central California Internet Crimes Against Children Task Force. Assistant United States Attorney David Gappa is prosecuting this case.

If convicted, Kiper faces a maximum sentence for each of the two counts of sexual exploitation of a minor of 30 years in prison, a $250,000 fine, and a lifetime term of supervised release. The maximum sentence for each of the two receipt of child pornography charges are 20 years in prison, a $250,000 fine, and a lifetime term of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

FRESNO, Calif. — A grand jury in Fresno returned an indictment today against Charles Max Pollock, 43, of Las Vegas, charging him with two counts of travel with intent to engage in illicit sexual conduct and two counts of sexual exploitation of a minor, United States Attorney Benjamin B. Wagner announced.

Pollock is an attorney who is licensed to practice law in Nevada and California. He has been in custody in Clark County, Nevada since September of 2013 on other charges. According to the criminal complaint previously brought against Pollock, he used an alias and posed as a photographer to contact an adult female who had posted an advertisement on Craigslist in Bakersfield seeking a modeling opportunity. The ad noted that her minor son had experience as a model. Pollock traveled from Las Vegas to Bakersfield, rented a hotel room, and took sexually explicit images of the minor. Pollock returned to Las Vegas and continued to communicate with the minor and his mother. Pollock arranged to meet the minor and the minor’s girlfriend at a different hotel in Bakersfield on August 15, 2013. He encouraged the minors to engage in sexually explicit conduct for purposes of taking photographs of the minors. Pollock paid the minors for each of the “photo shoots” and encouraged them not to tell anyone about the conduct.

This case is the result of an investigation by the Federal Bureau of Investigation and the Bakersfield Police Department. Assistant United States Attorney David Gappa is prosecuting this case.

If convicted, Pollock faces a maximum penalty of 30 years in prison, a $250,000 fine, and a lifetime term of supervised release for each of the four counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

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

FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Lazaro Sanchez-Lopez, 23, of Lamont, charging him with conspiracy to manufacture marijuana, manufacturing of marijuana and depredation of public lands, United States Attorney Benjamin B. Wagner announced.

According to court documents, on June 20, 2014, agents hiked for nearly two hours to execute a search warrant at a marijuana grow in the remote Flying Dutchman Creek drainage area in Kern County on Bureau of Land Management lands. Sanchez-Lopez was apprehended as he fled the grow area.

A total of 5,681 marijuana plants were eradicated from at least five separate plots. The site was littered with trash, irrigation hosing and camping supplies. The hillside was terraced by the growers and native vegetation was cut and removed to make room for the plants.

This case is the product of an investigation by the United States Forest Service, Bureau of Land Management, and the Kern County Sheriff’s Office. Assistant United States Attorney Michael Frye is prosecuting the case.

If convicted, Lazaro faces a maximum statutory penalty of 20 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — Jennifer Ann Lynch, 37, of Sacramento, pleaded guilty Tuesday to two counts of mail fraud and a single count of aggravated identity theft, United States Attorney Benjamin B. Wagner announced.

According to court documents, on May 3, 2013, Lynch was arrested in Lincoln for unrelated California state offenses. She was later released from state custody on a $175,000 bond she obtained through fraud. Specifically, Lynch defrauded a bail bond company by falsely representing her assets, ability to pay, and her income in order to secure the bond. She also obtained and altered stolen money orders to pay for the bond.

On May 17, 2013, while Lynch was out of custody, she took checks that were stolen from the mail and opened a Safe Credit Union account using the identity of the mail theft victim including her name, date of birth, driver's license number, employer identification and security badge, social security number, and signature. Between May 17, 2013, and July 31, 2013, Lynch deposited additional stolen and altered checks. After she deposited stolen checks, she withdrew cash.

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 ensure the U.S. Mail system is not used to facilitate criminal activity.”

This case is the product of an investigation by the United States Postal Inspection Service and the Placer County District Attorney's Office with assistance from the Roseville Police Department and the Sacramento Valley Hi-Tech Crimes Task Force. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.

Lynch is scheduled to be sentenced on September 16, 2014, by U.S. District Judge Lawrence K. Karlton. She faces up to 20 years in prison for each count of mail fraud and a mandatory minimum sentence of two years in prison 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.