Eastern District of California

FRESNO, Calif. — A federal grand jury returned a three-count indictment today against David Edward Hampton Jr., 34, resident of Taft, California, charging him with conspiracy to distribute and possess with the intent to distribute methamphetamine, attempted distribution of methamphetamine and possession with intent to distribute methamphetamine and heroin, United States Attorney Benjamin B. Wagner announced. 

According to court documents, David Hampton conspired with other individuals to distribute pound quantities of methamphetamine which he secured in California for distribution in South Dakota.  Hampton would regularly use the U.S. Mails to deliver his methamphetamine to South Dakota.

Hampton was arrested on Tuesday March 25, 2014, at his residence in Taft, California at the time agents and police executed a search warrant at the property.

This case was the product of an investigation by the Violent Crime Task Force which includes the Bakersfield Police Department, the Kern County Sheriff’s Department, the Kern County Probation Office and the Federal Bureau of Investigation. Assistant United States Attorney Brian K. Delaney is prosecuting the case.

If convicted, Hampton faces a maximum statutory penalty of no less than 10  years up to life in prison and a $5,000,000 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury indictment was unsealed today following the arrest of Jeffrey G. Vincent, 64, of Madera, who is charged with five counts of evading the assessment and payment of individual income taxes, United States Attorney Benjamin B. Wagner announced. 

According to court documents, Vincent, the general partner of a Fresno-based engineering company (Stafford Group Limited Partnership, d/b/a Veco Technologies), has not filed an individual income tax return since 1988, despite earning income from Stafford Group, including at least $457,365 between 2007 and 2010.  Vincent signed tax returns for Stafford Group in which he falsely represented that he does not have a social security number. 

This case was the product of an investigation by the Internal Revenue Service - Criminal Investigations. Assistant United States Attorney Christopher Baker is prosecuting the case.

The defendant was arrested this morning and is scheduled to be arraigned on the indictment before U.S. Magistrate Judge Barbara A. McAuliffe at 1:30 p.m.

If convicted, Vincent faces a maximum statutory penalty of five years in prison and a $250,000 fine for each count of tax evasion. 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 today against Derik Carson Kumagai, 40, resident of Clovis, California, and Saykham Somphoune, a/k/a, “Oat,” 40, resident of Fresno, California, charging them with conspiracy, bribery, and extortion, United States Attorney Benjamin B. Wagner announced. 

According to court documents, detective Kumagai accepted a $20,000 bribe from an individual who was under investigation for marijuana trafficking.  In return for the bribe payment, Kumagai and co-conspirator Somphoune (who is not a law enforcement officer) promised the person under investigation that he would be signed up as a confidential informant for the Fresno Police Department.  On November 6, 2013, the person under investigation paid Kumagai approximately $20,000 cash.  A few hours later, the person under investigation completed purported documents regarding work as a confidential informant for the Fresno Police Department.

This case was the product of an investigation by the Drug Enforcement Administration, Federal Bureau of Investigation, and Internal Revenue Service, Criminal Investigation Division.  The Department of Homeland Security - Homeland Security Investigations, and the United States Postal Inspection Service also provided investigative assistance in this case.  Assistant United States Attorneys Grant B. Rabenn and Kevin P. Rooney are prosecuting the case.

Derik Kumagai was released from pretrial custody on March 19, 2014.  Saykham Somphoune is currently detained as a flight risk. 

If convicted of conspiracy, the defendants face a maximum statutory penalty of five years in prison and a $250,000 fine. If convicted of bribery, they face a maximum statutory penalty of 10 years in prison and a $500,000 fine. If convicted of extortion or conspiracy to commit extortion, they face a maximum statutory penalty of 20 years in prison and a $250,000 fine.  Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Defendant's Bid to Be Released Before Completing His Sentence Denied

SACRAMENTO, Calif. — Alexander A. Romaniolis, 48, of Irvine, was sentenced today by United States District Judge Troy L. Nunley to 30 months in prison and a $17,500 fine, and forfeiture of over $400,000 for mortgage fraud, United States Attorney Benjamin B. Wagner announced.

According to court documents, Romaniolis recruited five straw buyers to purchase eight California residential properties in Rocklin, Roseville and San Clemente. Romaniolis assisted the straw buyers in providing false information to lenders about their employment, income, assets, and intent to occupy properties as primary residences. In most cases, the straw buyers claimed to be executives of companies created and controlled by Romaniolis. He was responsible for the origination of more than $5 million in residential mortgage loans in the scheme. All of the properties were foreclosed on, resulting in a total loss of more than $2 million.

At sentencing, Romaniolis asked to be released for a short period so he could see his family before completing his sentence.  Judge Nunley denied that request.

This case is the product of an investigation by the Federal Bureau of Investigation and the California Attorney General’s Mortgage Fraud Task Force. The Huntington Beach Police Department assisted in the arrest. Assistant United States Attorneys Jean M. Hobler and Jeff Spivak prosecuted the case.

FRESNO, Calif. — A federal grand jury returned a five-count superseding indictment today against Ramon Cano, 28, a resident of Bakersfield, and Gerardo Alvarez-Montanez, 32, an inmate at the Taft Federal Correctional Facility charging them with conspiracy to provide and possess contraband in prison and with various substantive counts, including distribution and attempted distribution of a controlled substance and bribery of a public official. United States Attorney Benjamin B. Wagner announced. 

According to court documents, Cano a full time contract correctional officer employed at the Taft Federal Correctional Facility, was involved in smuggling heroin, methamphetamine and other items of contraband including cash and cell phones to Alvarez-Montanez in return for payments of cash.

This case was the product of an investigation by the Federal Bureau of Investigation and the Office of the Inspector General U.S. Department of Justice. Assistant United States Attorney Brian K. Delaney is prosecuting the case.

If convicted, Cano and Alvarez face a maximum statutory penalty of forty  years in prison and a $5,000,000 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Victor Avalos Ballesteros, 24, resident of Bell, California, charging him with possession with intent to distribute methamphetamine, United States Attorney Benjamin B. Wagner announced. 

The indictment charging alleges that Ballesteros possessed with intent to distribute methamphetamine on February 10, 2014 within the County of Madera, California.  According to court documents, Ballesteros was transporting approximately 3.8 kilograms of methamphetamine from the Los Angeles area to Modesto.

This case was the product of an investigation by the Homeland Security Investigations and the Madera Narcotic Enforcement Task Force (MADNET).  Assistant United States Attorneys Patrick R. Delahunty and Kimberly A. Sanchez are prosecuting the case.

If convicted, Ballesteros faces a maximum statutory penalty of 20 years in prison and a $1,000,000 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

SACRAMENTO, Calif. — A federal grand jury returned a one-count indictment today charging Nicholas Michael Teausant, 20, of Acampo, with attempting to provide material support or resources to a foreign terrorist organization, United States Attorney Benjamin B. Wagner announced. 

According to court documents, Teausant traveled to the Canadian border with the intent of continuing to travel to Syria to join the Islamic State of Iraq and Syria, a foreign terrorist organization more widely known as al-Qa’ida in Iraq.

This case was the product of an investigation by the Federal Bureau of Investigation and the Modesto Police Department and San Joaquin Sheriff’s Office, who are members of the Modesto/Stockton Joint Terrorism Task Force, with significant assistance from U.S. Customs and Border Protection. Assistant United States Attorneys Jean M. Hobler and Jason S. Hitt are prosecuting the case in conjunction with Trial Attorney Andrew Sigler of the National Security Division of the U.S. Department of Justice.

Teausant was charged by complaint with one count of attempting to provide material support or resources to a terrorist organization on March 17, 2014.  He is currently in the custody of the U.S. Marshals pending transportation to the Eastern District of California from the Western District of Washington, where he was arrested, to face the charges now brought by indictment.  The date of his arrival in the Eastern District of California is not yet set.

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

Complaint

FRESNO, Calif. — Marijuana cultivators from Inyo, Fresno, Kern and Stanislaus Counties entered guilty pleas today in three cases and sentenced in two for their involvement in separate large-scale marijuana cultivation operations, according to U.S. Attorney Benjamin B. Wagner.
Mexican Nationals Plead Guilty to Forest Marijuana Operation (1:13CR340 LJO)
Jose Aguilar Santoyo (“Aguilar”), 27, of Michoacàn, Mexico, and Jose Salvador Garcia Rodriguez (“Garcia”), 23, of Guanajuato, Mexico both entered guilty pleas to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown on public land.  According to court documents, U.S. Forest Service agents seized 3,405 marijuana plants, 350 pounds of processed marijuana, digital scales, highly toxic and illegal rodenticides, including uFuran or Carbofuran, and 2,200 pounds of trash from a marijuana cultivation operation in the Hogback Creek area of the Inyo National Forest.  Agents found Garcia at the grow site.  Agents found Aguilar at a stash house associated with the grow site in Romoland in Riverside County.  Marijuana shake and residue, shipping labels associated with the shipment of marijuana to Chicago, and a firearm were also found at the stash house.  In pleading guilty, Aguilar and Garcia both agreed to pay $6,572.14 to the U.S. Forest Service for Hazmat removal and dumping fees associated with eradication of the grow site.  

Aguilar and Garcia are scheduled for sentencing on June 16, 2014.  Aguilar faces a mandatory minimum prison term of five years and a maximum term of forty years, along with a fine of $5 million.  Garcia faces a maximum prison term of twenty years and a fine of $1 million.  Both are also subject to deportation to Mexico, upon completion of any prison term imposed.  Their actual sentences will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. 

This case was investigated by the U.S. Forest Service, U.S. Drug Enforcement Administration (DEA), Homeland Security Investigations of Immigration and Customs Enforcement (ICE), Inyo County Sheriff’s Office, and Riverside County Sheriff’s Office.  The Environmental Protection Agency (EPA) also assisted in the investigation. 

Fresno Man Pleads Guilty in River Marijuana Operation (1:12CR342 AWI)

Sam Kounhavong, 51, of Fresno, Calif., also entered a guilty plea to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown beside the San Joaquin River in the vicinity of Newman in Stanislaus County.  In pleading guilty, Kouhnavong acknowledged that he and four other men cultivated 907 marijuana plants under the guise of compliance with California medical marijuana law.  Although federal law does not recognize a medical purpose for marijuana, Kounhavong admitted that the marijuana was grown for profit without any medical purpose.  During the execution of a search warrant at the grow site, agents also found a firearm and saw that water from the San Joaquin River had been diverted to irrigate the marijuana plants.

Kounhavong faces a maximum prison term of 20 years and a fine of up to $1 million.  His actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.  He is scheduled for sentencing on June 2, 2014.   

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

Fresno Man Sentenced for Ag Grow (1:12CR2341 LJO)

Phonepaseuth Phaphilom, 27, of Fresno, was sentenced to 46 months in prison followed by 36 months supervised release for conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on an agricultural parcel on Marks Avenue in rural southwest Fresno.  During the execution of a federal search warrant there, narcotics agents found Phaphilom with four other men from out of the area, 2,932 marijuana plants, and a firearm.  The men claimed the plants were being grown for medical reasons.  While federal law does not recognize the medical use of marijuana, several of the men acknowledged that the operation was for profit, in violation of California law.  Phaphilom, who was detained pretrial based in part on a criminal history that included weapons and narcotics violations, said he was going to sell the marijuana “up North” for $800 a pound.  Based on a conservative one pound per plant yield, the cultivation operation was valued at over $2.3 million.  In addition, court records indicate that some of the marijuana was destined for Las Vegas.  The State of Nevada does not recognize the medical use of marijuana.   

The case against Phaphilom was investigated by the DEA and Fresno County Sheriff’s Office.

Assistant United States Attorney Karen A. Escobar prosecuted the above cases.

SAN FRANCISCO – A federal criminal complaint, filed on March 24, 2014, was unsealed in San Francisco today, charging twenty-six defendants with firearms trafficking, money laundering, murder-for-hire, drug distribution, trafficking in contraband cigarettes, and honest services fraud, announced United States Attorney Melinda Haag, FBI Special Agent in Charge David J. Johnson, and Internal Revenue Service, Criminal Investigation, Special Agent in Charge José M. Martinez.

The defendants include Raymond “Shrimpboy” Chow, the current Dragonhead, or leader, of the San Francisco-based Chee Kung Tong organization (CKT), and State Senator Leland Yee, who represents San Mateo County and part of San Francisco County in the California Senate.

With respect to Chow, according to the Complaint, as FBI undercover agents infiltrated the CKT through introductions made by Chow and others, a pattern of alleged racketeering activity was uncovered.

According to the Complaint, as the relationship developed among the primary undercover agent, Chow, and other defendants, the undercover agent informed the defendants that he was interested in generating income from illegal schemes. The undercover agent was inducted into the CKT as a “Consultant.” Thereafter, during the course of multiple undercover operations, the undercover agent was allegedly introduced to a number of the defendants in order to launder money, traffic narcotics, traffic in firearms, traffic purportedly stolen cigarettes and liquor, and engage in murder-for-hire schemes.

Chow also introduced Keith Jackson to the undercover agent. Jackson, the owner and operator of “Jackson Consultancy,” a San Francisco based consulting firm, is a “Consultant” to the CKT. Jackson and his son, Brandon Jackson, allegedly responded to a request for weapons by the undercover agent, by indicating that Brandon Jackson, and an associate would be able to accommodate his request. Subsequently, Jackson, Brandon Jackson, and Marlon Sullivan sold various types of firearms, and two ballistic vests, to the undercover agent. Additionally, Jackson, Brandon Jackson, and Sullivan allegedly conspired to commit a purported murder for hire scheme requested by the undercover agent, in addition to other illegal activity, including the sale of stolen credit cards and the purported sale of cocaine to Jackson, Brandon Jackson, and Sullivan from the undercover agent.

Brandon Jackson introduced the undercover agent to Rinn Roeun, one of Brandon Jackson’s sources of supply for firearms. Roeun sold multiple firearms to the undercover agent and, during a series of conversations, told the undercover agent that he was willing to commit murder for a fee.

According to the Complaint, in addition to his relationship with Chow, and the CKT, Keith Jackson is also a close associate of Senator Leland Yee. From at least May 2011 through the present, Jackson has been involved in raising campaign funds for Yee.

With respect to Yee, the Complaint alleges that over the course of 2012 and continuing to the present time, Yee and Keith Jackson allegedly raised money and campaign funds for Yee’s Secretary of State campaign by soliciting donations from FBI undercover agents, in exchange for multiple official acts, and that Yee and Jackson were involved in a conspiracy to traffic firearms.

Starting in May 2011, according to the Complaint, and continuing for several months, Jackson solicited an undercover agent with the FBI to make contributions to Yee’s San Francisco mayoral campaign. These solicitations allegedly included asking the agent for donations in excess of the $500 individual donation limit. The agent declined to make any donations to Yee, but introduced Jackson and Yee to a purported business associate, another undercover FBI agent. Jackson and Yee then solicited the second undercover agent for campaign contributions. This solicitation resulted in at least one personal donation in the amount of $5,000 to Yee’s mayoral campaign.

After Yee lost the November 8, 2011, election, according to the Complaint, he had at least $70,000 in debt from that campaign. In connection with efforts to retire the mayoral campaign debt, according to the complaint, Yee and Jackson allegedly agreed that Yee would make a telephone call to a manager with the California Department of Public Health in support of a contract under consideration with the second undercover agent’s purported client, and would provide an official letter of support for the client, in exchange for a $10,000 campaign donation. Yee allegedly made the call on October 18, 2012, and provided the letter on or about January 13, 2013. On November 19, 2012, Jackson accepted the $10,000 cash donation.

According to the Complaint, in a further attempt by Jackson and Yee to gain money from one of the undercover agents, in August 2013, Jackson told the undercover agent that Yee had a contact who deals in arms trafficking. Jackson requested that the undercover agent provide a campaign donation on behalf of Yee, for Yee to facilitate a meeting with the arms dealer with the intent of the undercover agent to purportedly purchase a large number of weapons. During a meeting with the undercover agent, Yee and Jackson allegedly discussed details of the specific types of weapons the undercover agent was interested in buying and importing.

The defendants are charged as follows:

LELAND LIN YEE

• Conspiracy to Traffic in Firearms Without a License, and to Illegally Import Firearms, in violation of 18 U.S.C. § § 371, 922(a)(1), and (l)
• Scheme to Defraud Citizens of Honest Services, in violation of 18 U.S.C. § §  1343, 1346, 2 (six counts)

KEITH JACKSON

• Conspiracy to Traffic in Firearms Without a License and to Illegally Import Firearms, in violation of 18 U.S.C. § § 371, 922(a)(1), and (l)
• Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1)
• Scheme to Defraud Citizens of Honest Services, in violation of 18 U.S.C. § §  1343, 1346, 2 (six counts)
• Use of an Interstate Commerce Facility for the Commission of a Murder-for-Hire, in violation of 1958
• Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. §  846

KWOK CHEUNG CHOW, a/k/a RAYMOND CHOW, a/k/a SHRIMPBOY

• Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3) (three counts)
• Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (two counts)
• Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § §  371, 2314, and 2315 (two counts)
• Conspiracy to Traffic and Trafficking in Contraband Cigarettes, in violation of 18 U.S.C. § § 371, 2315, 2342(a), and 2344

GEORGE NIEH

• Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3) (three counts)
• Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (two counts)
• Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § §  371, 2314, and 2315 (two counts)
• Conspiracy to Traffic and Trafficking in Contraband Cigarettes, in violation of 18 U.S.C. § § 371, 2315, 2342(a), and 2344
• Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1) (two counts)
• Felon in Possession of a Firearm, in violation of 18 U.S.C. § 922(g)(1) (two counts)
• Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § § 841 and 846.

KEVIN SIU

• Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3)

ALAN CHIU

• Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3)

KONGPHET CHANTHAVONG

• Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. § § 841 and 846 (two counts)
• Possession With Intent to Distribute Narcotics, in violation of 21 U.S.C. §  841
• Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of 18 U.S.C. §  924(c)
• Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1) (three counts)
• Felon in Possession of a Firearm, in violation of 18 U.S.C. §  922(g)(1)(three counts)

 
XIAO CHENG MEI, a/k/a MICHAEL MEI

• Possession With Intent to Distribute Narcotics, in violation of 21 U.S.C. §  841

BRANDON JACKSON

• Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. §  846
• Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1)
• Use of an Interstate Commerce Facility for the Commission of a Murder-for-Hire, in violation of 1958

MARLON SULLIVAN

• Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. §  846
• Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1)
• Use of an Interstate Commerce Facility for the Commission of a Murder-for-Hire, in violation of 1958

RINN ROEUN

• Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1)
• Use of an Interstate Commerce Facility for the Commission of a Murder-for-Hire, in violation of 1958

ANDY LI

• Money Laundering, in violation of 18 U.S.C. § 1956(a)(1)
• Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. §  846
• Trafficking in Firearms Without a License, in violation of 18 U.S.C. § 922(a)(1) (two counts)
• Felon in Possession of a Firearm, in violation of 18 U.S.C. §  922(g)(1) (two counts)

LESLIE YUN

• Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3)
• Conspiracy to Traffic and Trafficking in Contraband Cigarettes, in violation of 18 U.S.C. § § 371, 2315, 2342(a), and 2344

                                           
YAT WAH PAU, a/k/a JAMES PAU

• Money Laundering of Funds Believed to be Proceeds of Specified Unlawful Activity, in violation of 18 U.S.C. § 1956(a)(3)
• Conspiracy to Traffic and Trafficking in Contraband Cigarettes, in violation of 18 U.S.C. § § 371, 2315, 2342(a), and 2344

JANE MIAO XHEN LIANG, a/k/a JANE LIANG

• Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § §  371, 2314, and 2315

TINA YAO GUI LIANG, a/k/a TINA LIANG

• Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § §  371, 2314, and 2315
• Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. §  846

BRYAN TILTON

• Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § §  371, 2314, and 2315
•  Conspiracy to Distribute Narcotics, in violation of 21 U.S.C. §  846

HUAN MING MA

• Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2315

HON KEUNG SO

• Conspiracy to Receive and Transport Stolen Property in Interstate Commerce, in violation of 18 U.S.C. § § 371, 2315

NORGE MASTRANGELO

• Money Laundering, in violation of 18 U.S.C. § 1956(a)(1)

ALBERT NHINGSAVATH

• Money Laundering, in violation of 18 U.S.C. § 1956(a)(1)

SERGE GEE

• Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (three counts)

XIU YING LIANG, a/k/a ELAINE LIANG

• Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (three counts)

GARY KWONG YIU CHEN

• Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (two counts)

ANTHONY LAI

• Money Laundering, in violation of 18 U.S.C. § 1956(a)(1) (two counts)

WILSON SY LIM

• Conspiracy to Traffic in Firearms Without a License, and to Illegally Import Firearms, in violation of 18 U.S.C. § § 371, 922(a)(1), and (l)

In a related case, a complaint filed on March 25, 2014, charging defendant BARRY HOUSE with one count of trafficking in firearms without a license, in violation of 18 U.S.C. § 922(a)(1), and one count of felon in possession of a firearm, in violation of 18 U.S.C. §  922(g)(1).

The maximum penalties for the violations are as follows:

• 18 U.S.C. §  1956(a)(1)          Twenty years in prison

Three years supervised release
$500,000 fine
$100 special assessment

• 18 U.S.C. §  1956(a)(3)          Twenty years in prison

Three years supervised release
$500,000 fine
$100 special assessment

• 18 U.S.C. § § 371,                  Five years in prison

2314, 2315                              Three years supervised release
$250,000 fine
$100 special assessment

• 18 U.S.C. § §  371, 2315,       Five years in prison

2342(a), 2344                          Three years supervised release
$250,000 fine
$100 special assessment

• 18 U.S.C. § 922(a)(1)             Five years in prison

Three years supervised release
$250,000 fine
$100 special assessment

• 18 U.S.C. § 922(g)(1)             Ten years in prison

Three years supervised release
$250,000 fine
$100 special assessment

• 18 U.S.C. §§  371,                  Five years in prison

922(a)(1), 922(l)                      Three years supervised release
$250,000 fine
$100 special assessment

• 18 U.S.C. §  924(c)                 From five years to life

Five years supervised release
$250,000 fine
$100 special assessment

• 18 U.S.C. §  1958                   Ten years in prison

Three years supervised release
$250,000 fine
$100 special assessment

• 18 U.S.C. § § 1343,                Twenty years in prison

1346, 2                                    Three years supervised release
$250,000 fine
$100 special assessment

• 21 U.S.C. § 841                      From five years to forty years in prison

Four years supervised release
$5 million fine
$100 special assessment

• 21 U.S.C. § 841, 846              Five years in prison,

with five or ten year mandatory minimum in some instances
Three to five years supervised release
$250,000 to $10 million fine
$100 special assessment

The defendants, with the exception of Brandon Jackson, Sullivan, Liang, Nhingsavath, Mastrangelo, Gee, Yun, and Pau, were arrested today and made their initial appearances in federal court in San Francisco in front of United States Magistrate Judge Nathanael M. Cousins.

Yun and Pau were arrested yesterday in New York. Sullivan was arrested this morning in New Jersey and Brandon Jackson was arrested in Connecticut. Liang, Nhingsavath, Mastrangelo, and Gee are fugitives.

A complaint merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants are subject to the maximum penalties stated above. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

William Frentzen, Susan Badger, and Waqar Hasib are the Assistant U.S. Attorneys who are prosecuting the case. The prosecution is the result of a five-year investigation by the FBI, Internal Revenue Service-Criminal Investigations Division, San Francisco Police Department, Oakland Police Department, and Antioch Police Department.
Further Information: Case #:CR-3-14-70421  NC
A copy of this press release may be found on the website of the U.S. Attorney's Office at http://www.justice.gov/usao/can/index.html.
Electronic court filings and further procedural and docket information are available at https://ecf.cand.uscourts.gov/cgi-bin/login.pl.
Judges' calendars with schedules for upcoming court hearings can be viewed on the court's website at www.cand.uscourts.gov.
Press inquiries to the U.S. Attorney's Office should be directed to Lili AraúzHaase at (415) 436-6811 or by e-mail at Lillian.ArauzHaase@usdoj.gov.

Criminal Complaint

SACRAMENTO, Calif. — Donald M. Wanland, 56, resident of El Dorado Hills, was sentenced today by United States District Judge Lawrence K. Karlton to 46 months in prison for convictions on 28 criminal counts, including tax evasion, failing to file tax returns, and removing, depositing, and concealing assets from the IRS in defiance of a levy, United States Attorney Benjamin B. Wagner announced.

Wanland is a Sacramento-area attorney who was convicted of the 28 tax-related counts on September 26, 2013, after a two week jury trial.  During sentencing today, Judge Karlton noted that lawyers have a “special duty” and stated, “it is particularly distressing when a lawyer just disregards the law.”  On February 19, 2014, the California State Bar placed Wanland on interim suspension as a result of his convictions, and he is currently not eligible to practice law. 

Wanland stated to the Court at sentencing today that his conduct was driven by “greed, selfishness, and contempt.”  According to evidence introduced at trial, Wanland evaded paying taxes for years. For tax years 2000 through 2003, he filed tax returns showing gross income of more than $1.5 million, for which he admitted owing taxes of $448,451. But he paid nothing. When the IRS tried to collect, Wanland concealed the bank accounts that he used to receive and spend his income, and then filed no tax returns at all for years 2004 through 2007. He continued working for his law firm and received more than $1 million total during those years. When the IRS placed levies on his income in April 2005, Wanland repeatedly defied the levies by continuing to funnel his income to the concealed nominee accounts. He spent the money on various items including a $2,700 weekend at Squaw Valley Ski Resort, payments on a Mercedes Benz and a Cadillac Escalade, gambling at Las Vegas casinos, vacations to Mexico and Hawaii, limousine services, and expenses for the pool at his home in El Dorado Hills. He also withdrew hundreds of thousands of dollars in cash and wrote hundreds of thousands of dollars in checks out of the concealed accounts. 

“One of the obligations of American citizenship is to pay federal income taxes, and most people recognize that obligation” said U.S. Attorney Wagner.  “It is particularly offensive when someone who has profited from the bounty of this society, like Don Wanland, shirks that duty.  The fact that he will be contemplating his crimes from prison should send a message to others that no one is too busy, too clever, or too wealthy to comply with the tax code.”

“This is not a case of someone who simply fell behind in a good faith effort to keep up with their taxes,” said José M. Martínez, Special Agent in Charge, IRS Criminal Investigation. “Mr. Wanland is a lawyer who refused to obey the law and used his legal knowledge to cheat the federal and state governments out of more than $2.2 million.  Those who intentionally undermine our tax system should know they will not go undetected and will be held accountable.”

According to court documents, Wanland tried to challenge the amount of tax loss connected to his by claiming his tax debts had been later discharged in a bankruptcy.  The Court rejected this argument, noting that federal bankruptcy law automatically precluded Wanland’s tax debts from being discharged in bankruptcy because he engaged in willful tax evasion.

This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Matthew D. Segal and Christopher S. Hales prosecuted the case.

SACRAMENTO, Calif. – Billy James Hammett, 30, of Marysville, Calif., was sentenced today by U.S. District Judge John A. Mendez to 87 months in prison for violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for his role in a 2011 racially motivated attack against a white man and an African-American woman in Marysville, Calif.  The court also ordered Hammett to pay restitution of $175 and to serve a three year period of supervised release.  Hammett pleaded guilty on Dec. 17, 2013, and his co-defendants, Perry Sylvester Jackson, 28, and Anthony Merrell Tyler, 33, have also pleaded guilty and are awaiting sentencing.

According to documents filed with the court, around 10:45 p.m. on April 18, 2011, a white man and an African-American woman parked their car at a convenience store in Marysville.  Shortly afterward, the three defendants, each of whom has white supremacist tattoos, attacked the man and woman based on race.  After calling the male victim a “[racial slur]-lover,” Jackson punched him twice in the head through the open passenger window.  At the same time, Hammett kicked the woman in the chest.  A few seconds later, Tyler smashed the car’s windshield with a crowbar.   As the attack continued, the woman managed to take refuge inside the convenience store.  All three assailants then descended upon the male victim and began attacking him in the parking lot.  He sustained abrasions on his right forearm and knees, while the woman suffered bruising to her chest.  At the end of the incident, Tyler used a racial slur to refer to an African-American witness.

In sentencing the defendant, Judge Mendez said he found surveillance video footage of the assault “disturbing.”  He noted that Hammett’s attack on the victims was “unprovoked and unwarranted,” and that the victims continue to suffer.

During the sentencing hearing, Judge Mendez considered Hammett’s background and criminal history, which includes a conviction in 2006 for assaulting a 72-year-old black man, also in Marysville.  According to court records, Hammett made racial comments immediately before the unprovoked attack.  In addition, Hammett has been affiliated with a number of white supremacist gangs, including Supreme White Power.  He has tattoos of the words “white power” across his abdomen, a large swastika on the right side of his torso and the word “skinhead” written across the top of his back.  Judge Mendez stated during the sentencing hearing that Hammett poses “a serious threat to the public.”

“The defendant and his friends accosted the victims in public and assaulted them because of their race,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division.  “The Department is committed to stamping out racial violence and will continue to prosecute hate crimes vigorously.”

“Racially-motivated violence has no place in civilized society,” said U.S. Attorney Benjamin B. Wagner for the Eastern District of California.  “This office has a history of prosecuting those perpetrate crimes of hate, and as long as these crimes continue, we will be there to enforce the law and uphold this nation’s Constitutional values.”

“The FBI has a long history of promptly investigating civil rights violations,” said Special Agent in Charge Monica M. Miller for the FBI Sacramento Field Office.  “Hammett is experiencing the full force of a federal response against his despicable act.  The strong sentence imposed by Judge Mendez demonstrates that hate crimes such as this will not be tolerated in our communities.”
Jackson is scheduled to be sentenced on April 22, 2014 and Tyler is scheduled to be sentenced on July 8, 2014.  Each defendant faces a statutory maximum sentence of 10 years in prison and a fine of $250,000. 

FRESNO, Calif. — Antonio Perez Marcial, 41, of Bakersfield, pleaded guilty today to conspiracy to commit bank fraud, mail fraud, and wire fraud, in connection with a mortgage fraud scheme in Bakersfield, U.S. Attorney Benjamin B. Wagner announced.

According to Perez-Marcial’s guilty plea, he conspired with his co-defendants from 2007 to 2010 to use straw buyers to purchase residential properties in Bakersfield developed by Jara Brothers Investments (JBI), owned by co-defendants Eliseo Jara and Sergio Jara, and Pershing Partners LLC, owned by co-defendant Lucia Chavez.  The conspirators paid straw buyers to purchase the properties from JBI and Pershing Partners, and funded the purchases using loans they obtained for the straw buyers from lenders based on false and fraudulent loan applications.  The loan applications the conspirators submitted to lenders frequently contained false statements concerning the straw buyers’ employment status, income, assets, intent to occupy the properties as their personal residences, and source of down payments for the purchase of the properties.  The conspirators concealed from the lenders that the property developers funded certain of the straw buyers’ down payments.  The conspirators also submitted false supporting documentation to lenders such as false and altered bank account statements purporting to show that the straw buyer had a high bank account balance, false verifications of the straw buyers’ bank account funds, false verifications of rent purporting to be from the straw buyer’s landlord, false pay stubs, and false verifications of employment.  Perez-Marcial at times received from other conspirators a “consulting fee” ranging from $20,000 to $30,000 or more when a property was sold to a straw buyer, to compensate Perez-Marcial for having obtained the straw buyer and to fund the straw buyer’s payment.  Perez-Marcial admitted he caused lenders approximately $3,455,250 in losses due to his role in the conspiracy.

“Mortgage fraud saps the strength of our banking system and has victimized communities across our nation,” said Jose M. Martinez, Special Agent in Charge of IRS Criminal Investigation in Oakland. “Today’s plea represents one of the many results of the ongoing and focused efforts of the IRS and our law enforcement partners to identify and hold criminals who tried to game our financial system accountable for their actions.”

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

Perez-Marcial is scheduled to be sentenced on June 2, 2014 at 10:00 a.m. by Senior United States District Judge Anthony W. Ishii.  The maximum sentence for the conspiracy charge is 30 years in prison.  The actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Co-defendant Ricardo Salinas pleaded guilty to bank fraud in 2013, and his sentencing is set for July 28, 2014.  The remaining six defendants have pleaded not guilty, the charges as to them are only allegations, and they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This law enforcement action is part of the work being done by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. One component of the FFETF is the national Mortgage Fraud Working Group, co-chaired by U.S. Attorney Wagner.  For more information on the task force, visit StopFraud.gov.

FRESNO, Calif. — Mayra Alejandra Soria, 30, formerly of Bakersfield, pleaded guilty today to conspiracy to steal and possess stolen mail and one count of possession of 15 or more unauthorized access devices, United States Attorney Benjamin B. Wagner announced. Soria is the last of five co-conspirators to plead guilty to mail theft crimes after being indicted in May 2013 as part of Operation Broken Mailbox, the United States Postal Inspection Service’s ongoing effort to work with local law enforcement partners to investigate and prosecute stolen mail offenses.

According to court documents, from March 17, 2013 until May 21, 2013, Soria and others engaged in a conspiracy to steal mail in Wasco and elsewhere in the Bakersfield area, in order to steal checks and commit identity theft. As part of the conspiracy, Soria and her co-conspirators fished mail out of U.S. mail collection boxes located at Bakersfield area post offices and then looked for third party information and financial instruments, including checks and money orders to cash. The defendants then altered and negotiated the stolen checks – sometimes by depositing them into accounts they had opened in the names of identity theft victims. In total, Soria and her co-defendants stole checks and other items valued at more than $120,000.

This case was the product of an investigation by the United States Postal Inspection Service with assistance from the Wasco Kern County Sheriff’s Office. Assistant United States Attorney Megan A. S. Richards is prosecuting the case.

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 mail theft to protect postal customer’s mail from theft.”

Soria is scheduled to be sentenced by Judge Lawrence J. O'Neill on June 16, 2014, at 8:30 a.m. Soria faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. 

Co-defendant Eric Alberto Herrera, 26, pleaded guilty to conspiracy to steal mail in December and was sentenced to 24 months imprisonment. Co-defendant Elisee Torres-Pacheco, 36, pleaded guilty to possession of stolen mail and was sentenced to 36 months of probation. Co-defendants Brisa Celeste Castillo, 33, and Mateo Manuel Santiago, 25, each have pled guilty to conspiracy to steal mail and are awaiting sentencing by Judge Lawrence J. O’Neill. Castillo faces a maximum statutory penalty of five years in prison and a $250,000 fine.  Her sentencing is set for May 5, 2014.  Santiago, who pled guilty to one count of unlawfully possessing a postal mail key in addition to conspiracy, faces a maximum statutory penalty of ten years in prison and a $250,000 fine. His sentencing is set for April 28, 2014.

FRESNO, Calif. — A teacher from Clovis pleaded guilty today to producing child pornography, a Madera man was sentenced to 25 years in prison, a Modesto man was sentenced to 17 years in prison, and a Bakersfield man was returned to prison for violating the terms of his post-prison supervision, United States Attorney Benjamin B. Wagner announced.

“This office has established a national reputation for its prosecution of child predators and others who exploit children,” said U.S. Attorney Wagner.  “One of the U.S. Department of Justice’s strategic priorities is protecting the most vulnerable members of society; cases like these make clear why we take this mission so seriously.”    

“As these cases make abundantly clear, local and federal law enforcement are allied in the effort to protect children and combat the proliferation of child pornography,” said Mike Prado, resident agent in charge for Homeland Security Investigations (HSI) Fresno. “The urgency of our mission cannot be understated, particularly in the cases highlighted today that involved local victims whose innocence was stolen by the defendants.” 

“The Federal Bureau of Investigation and our law enforcement partners are committed to identifying and investigating all individuals who possess and trade images that depict the victimization of young children,” said Special Agent in Charge Monica M. Miller of the Sacramento FBI.  “Repeat offenders such as Reddell and Bowersox are of particular concern as the continued, despicable behavior, despite a prior conviction, demonstrates the threat posed to our innocent children.”

Former Clovis Teacher Pleads Guilty to Producing Child Pornography
Former Clovis Unified School District teacher Neng Yang, 46, of Clovis, pleaded guilty today to two counts of sexual exploitation of a minor. According to the plea agreement, Yang admitted to using a computer device and electronic storage media to record and store videos depicting the sexual abuse of a minor under 12 years old on multiple occasions in January 2012. Yang was charged with four counts of producing child pornography and has been in federal custody since January 27, 2012.

Yang is scheduled to be sentenced by Senior United States District Judge Anthony W. Ishii on June 2, 2014. The plea agreement contemplates a sentence of 38 years. The actual sentence, however, will be determined at the discretion of the court at the hearing.

This case is the product of an investigation by the Central California Internet Crimes Against Children Task force, specifically the Clovis Police Department and the Fresno U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorney Brian W. Enos is prosecuting the case. Docket #: 1:12-cr-037 AWI

Madera Parolee Sentenced to 25 Years in Prison for Receipt of Child Pornography
Frank Charles Reddell, 39, of Madera, was sentenced today by U.S. District Judge Lawrence J. O'Neill to 25 years in prison for receiving child pornography. According to court documents, on December 26, 2012, Reddell was arrested by a California State Parole agent who observed Reddell sitting in his car in a parking lot viewing images of child pornography. At the time of his arrest, Reddell was on parole. When agents searched the Reddell’s computer and a computer thumb drive identified as belonging to him, they found many files containing child pornography. Reddell also had a 2004 conviction in the Tuolumne County Superior Court for lewd and lascivious conduct with a minor. Reddell pleaded guilty to receipt of child pornography on December 2, 2013.

This case was the product of an investigation by the Fresno U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Madera County Sheriff’s Office, the Madera Police Department, and the California Department of Corrections & Rehabilitation. Assistant United States Attorney Brian W. Enos prosecuting the case. Docket # 1:13-cr-090 LJO

Modesto Man Sentenced 17 Years in Prison for Receipt and Distribution of Child Pornography
Ted Lee Duran, 49, of Modesto, was sentenced by Senior U.S. District Judge Anthony W. Ishii to serve 17 years in prison and a lifetime term of supervised release for receipt and distribution of child pornography. According to court documents, a relative of Duran went to the Modesto Police Department and reported finding child pornography on a phone that Duran had borrowed. Additional investigation revealed that Duran had received or distributed more than 600 images of minors being sexually abused, some of which depicted violence or were of sadistic conduct.

This case was the product of an investigation by the FBI’s Modesto office in collaboration with the Ceres and Modesto Police Departments. It was prosecuted by Assistant U.S. Attorney David Gappa. Docket # 1:12-cr-384 AWI

Bakersfield Man Returns to Prison after Serving a Four-Year Sentence
Christopher Kent Bowersox, 41, of Bakersfield, was sentenced by Senior U.S. District Judge Anthony W. Ishii to serve three months in custody as a result of two violations of his supervised release conditions. Bowersox, a former Bakersfield Police detective, began serving a 120-month term of supervised release after he completed a four-year prison term, imposed after his conviction for possession of child pornography, on August 7, 2013. Terms of supervision included restrictions on accessing the Internet and pornography. Bowersox admitted that on December 11, 2013, he used a computer to access pornography on the Internet. Judge Ishii today re-imposed a term of supervision for 117 months during which Bowersox will be required to register as a sex offender, and his access to minors, computers, and the Internet will continue to be restricted.

The case was originally investigated by the Federal Bureau of Investigation and the Bakersfield Police Department with assistance from the Kern County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney David Gappa. (1:10-cr-082 AWI).

FRESNO, Calif. — Marijuana cultivators from Inyo, Fresno, Kern and Stanislaus Counties entered guilty pleas today in three cases and sentenced in two for their involvement in separate large-scale marijuana cultivation operations, according to U.S. Attorney Benjamin B. Wagner.
Mexican Nationals Plead Guilty to Forest Marijuana Operation (1:13CR340 LJO)
Jose Aguilar Santoyo (“Aguilar”), 27, of Michoacàn, Mexico, and Jose Salvador Garcia Rodriguez (“Garcia”), 23, of Guanajuato, Mexico both entered guilty pleas to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown on public land.  According to court documents, U.S. Forest Service agents seized 3,405 marijuana plants, 350 pounds of processed marijuana, digital scales, highly toxic and illegal rodenticides, including uFuran or Carbofuran, and 2,200 pounds of trash from a marijuana cultivation operation in the Hogback Creek area of the Inyo National Forest.  Agents found Garcia at the grow site.  Agents found Aguilar at a stash house associated with the grow site in Romoland in Riverside County.  Marijuana shake and residue, shipping labels associated with the shipment of marijuana to Chicago, and a firearm were also found at the stash house.  In pleading guilty, Aguilar and Garcia both agreed to pay $6,572.14 to the U.S. Forest Service for Hazmat removal and dumping fees associated with eradication of the grow site.  

Aguilar and Garcia are scheduled for sentencing on June 16, 2014.  Aguilar faces a mandatory minimum prison term of five years and a maximum term of forty years, along with a fine of $5 million.  Garcia faces a maximum prison term of twenty years and a fine of $1 million.  Both are also subject to deportation to Mexico, upon completion of any prison term imposed.  Their actual sentences will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. 

This case was investigated by the U.S. Forest Service, U.S. Drug Enforcement Administration (DEA), Homeland Security Investigations of Immigration and Customs Enforcement (ICE), Inyo County Sheriff’s Office, and Riverside County Sheriff’s Office.  The Environmental Protection Agency (EPA) also assisted in the investigation. 

Fresno Man Pleads Guilty in River Marijuana Operation (1:12CR342 AWI)

Sam Kounhavong, 51, of Fresno, Calif., also entered a guilty plea to conspiring to manufacture, distribute and possess with intent to distribute marijuana grown beside the San Joaquin River in the vicinity of Newman in Stanislaus County.  In pleading guilty, Kouhnavong acknowledged that he and four other men cultivated 907 marijuana plants under the guise of compliance with California medical marijuana law.  Although federal law does not recognize a medical purpose for marijuana, Kounhavong admitted that the marijuana was grown for profit without any medical purpose.  During the execution of a search warrant at the grow site, agents also found a firearm and saw that water from the San Joaquin River had been diverted to irrigate the marijuana plants.

Kounhavong faces a maximum prison term of 20 years and a fine of up to $1 million.  His actual sentence will be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.  He is scheduled for sentencing on June 2, 2014.   

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

Fresno Man Sentenced for Ag Grow (1:12CR2341 LJO)

Phonepaseuth Phaphilom, 27, of Fresno, was sentenced to 46 months in prison followed by 36 months supervised release for conspiring to cultivate, distribute and possess with intent to distribute marijuana grown on an agricultural parcel on Marks Avenue in rural southwest Fresno.  During the execution of a federal search warrant there, narcotics agents found Phaphilom with four other men from out of the area, 2,932 marijuana plants, and a firearm.  The men claimed the plants were being grown for medical reasons.  While federal law does not recognize the medical use of marijuana, several of the men acknowledged that the operation was for profit, in violation of California law.  Phaphilom, who was detained pretrial based in part on a criminal history that included weapons and narcotics violations, said he was going to sell the marijuana “up North” for $800 a pound.  Based on a conservative one pound per plant yield, the cultivation operation was valued at over $2.3 million.  In addition, court records indicate that some of the marijuana was destined for Las Vegas.  The State of Nevada does not recognize the medical use of marijuana.   

The case against Phaphilom was investigated by the DEA and Fresno County Sheriff’s Office.

Assistant United States Attorney Karen A. Escobar prosecuted the above cases.

FRESNO, Calif. — United States District Judge Lawrence J. O’Neill sentenced Jayson Peter Costa, 41, of Bakersfield, to 78 months imprisonment today for his role in an extensive mortgage fraud scheme that ran from January 2004 to September 2007, United States Attorney Benjamin B. Wagner announced.  Costa was ordered to self-surrender by May 5, 2014.

According to court documents, David Marshall Crisp and Carlyle (“Carl”) Lee Cole owned and operated Crisp & Cole Real Estate (CCRE), a real estate brokerage, and Tower Lending, an affiliated mortgage brokerage. Between January 2004 and September 2007, these defendants and others at CCRE and Tower Lending carried out a conspiracy to defraud mortgage companies and federally-insured financial institutions. They used straw purchasers to acquire properties at inflated prices with funds borrowed from lenders, often using 100 percent financing and based on false and fraudulent loan applications. The conspirators frequently resold the properties from one straw buyer to another, each time at an inflated, higher price in order to extract the purported increased “equity” from the property for their benefit.  Ultimately, most of the properties were foreclosed upon after the defendants failed to make the mortgage payments when due.

According to his plea agreement, Costa worked as a loan officer at Tower Lending but was not properly licensed and therefore could not legally process any of the loan applications as he did.  Co-defendants Crisp and Cole, and others at CCRE and Tower Lending, knew that Costa was not properly licensed but nonetheless allowed Costa to continue acting as a loan officer.  Costa admitted that while at Tower Lending he submitted numerous false and fraudulent loan applications to lenders for co-conspirators and other straw buyers, and also purchased properties as a straw buyer, all in furtherance of the conspiracy.  When the California Department of Real Estate investigated CCRE and Tower Lending during the period of the conspiracy, Costa, co-defendants Crisp and Cole, and others concealed that Costa was working as an unlicensed loan officer for Tower Lending.  The defendants falsified the loan paperwork on loans prepared and handled by Costa to make it appear that co-defendant Cole had been the loan officer on those loans.  Costa admitted in his plea agreement that he caused lenders losses of at least $7,580,019 due to his role in the conspiracy.

On February 24, 2014, Carl Cole was sentenced to 17 years and seven months in prison.  Caleb Lee Cole was sentenced to five months in prison.  Sentencing dates for the remaining defendants are as follows:  David Marshall Crisp and Jennifer Anne Crisp on March 31, 2014; Michael Angelo Munoz on April 7, 2014; Jeriel Salinas on May 12, 2014; and Sneha Mohammadi on June 9, 2014.  Robinson Nguyen has completed his 27-month sentence.  A trial for another co-defendant is set for April 8, 2014 and the charges are only allegations as to that defendant; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.

In 2009 and 2010, five separate cases were brought against five defendants who pleaded guilty to charges relating to this scheme. Scheduled to be sentenced on May 27, 2104 are:  Kevin Patrick Sluga (1:10-cr-001 – four counts of wire fraud for false verification of employment letters), and Leslie Sluga (1:10-cr-002 – two counts of wire fraud for acting as a straw buyer) Scheduled to be sentenced on June 2, 2014 are: Jerald Allen Teixeira (1:09-cr-375 – one count of wire fraud for making false statements on loan documents), Megan Balod (1:10-cr-016 – four counts of wire fraud for acting as a straw buyer), and Christopher Lance Stovall (1:10-cr-271 – four counts of mail fraud for making false statements on loan documents).

The maximum statutory penalty for mail fraud is 30 years in prison and a $1 million fine. The maximum statutory penalty for wire fraud is 20 years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

FRESNO, Calif. — Alvin Dickson, 52, of Oakland, was arraigned in Fresno today on a federal indictment charging him with social security fraud and theft of government property, United States Attorney Benjamin B. Wagner announced. Dickson was arrested at his home on March 5, 2014. He made his first court appearance before U.S. Magistrate Judge Donna M. Ryu in Oakland.

According to the indictment returned by the grand jury on January 30, 2014, between July 2005 and April 2013, Dickson received Social Security Disability Insurance Benefits totaling approximately $113,000. At the same time he was receiving the benefits, and unknown to the Social Security Administration, he was working as the Pastor of Mt. Pleasant Missionary Baptist Church in Fresno.

This case is the product of an investigation by the Social Security Administration, Office of Inspector General. Assistant United States Attorney Mark J. McKeon is prosecuting the case.

The next court appearance for Dickson is a status conference before Magistrate judge Sheila K Oberto on May 19, 2014 at 1:00 p.m.

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

SACRAMENTO, Calif. — Eight defendants were arrested this week in a wide-ranging drug and gun trafficking investigation, United States Attorney Benjamin B. Wagner announced. A federal grand jury returned the indictments on March 13, 2014, charging the defendants with various drug and gun trafficking offenses. The indictments were unsealed following the arrests of each defendant.

These cases are the product of a long-term investigation by the FBI Safe Streets Task Force and ATF, along with officers from the Sacramento Police Department; California Highway Patrol; and California Department of Corrections and Rehabilitation, Department of Parole and Special Service Unit; and the California Gang Intelligence Initiative.

“We are thankful for continued, active collaboration with our state and local  law enforcement task force partners who share our commitment dismantling criminal networks that pose a serious threat to the communities we serve,” said Special Agent in Charge Monica M. Miller of the Sacramento division of the Federal Bureau of Investigation.  “Disruption of illegal drug and weapons trafficking is essential to ensure the safety and vitality of our neighborhoods.”

Andre Nicholas Amaya, 33, of Sacramento, was charged with three counts of distribution of methamphetamine in Sacramento County. He was arraigned on March 20, 2014, the same day as his arrest. His next court date is set for April 17, 2014.
(docket # 2:14-cr-72 MCE)

Joseph Darosa, 21, of Elk Grove, is charged with five counts of distribution of methamphetamine in Sacramento County. He was arraigned after his arrest today. His next court date is May 6, 2014.
(docket # 2:14-cr-71 JAM)

Ruben Luis Vega, 27, of North Highlands, is charged with two counts of distributing methamphetamine in Sacramento County. He was arrested on March 19, 2014, and arraigned the next day. His next court date is April 16, 2014.
(docket # 2:14-cr-68 KJM)

Antonio Reyna, 33, of Sacramento is charged with being a felon in possession of a Ruger .223-caliber rifle. Reyna was arrested on March 19, 2014 and arraigned the next day. His next court date is April 15, 2014.
(docket # 2:14-cr-0LKK)

John Greer, 31, of Carmichael, and Julius White, 32, of Sacramento, are charged with unlawfully transferring a Winchester sawed-off shotgun. They were arraigned and their next court date is April 18, 2014.
(docket # 2:14-cr-073 GEB)

Donald Brown, 23, of Sacramento, is charged with two counts of being a felon in possession of a firearm: .22-caliber semi-automatic pistol and a Norinco rifle.
(docket # 2:14-cr-074 MCE)

Benjamin Martinez, 30, of Sacramento, was arrested today on a criminal complaint, charging him with distribution of methamphetamine. He made an initial appearance before Magistrate Judge Dale A. Drozd. His next court date is April 3, 2014.
(docket # 2:14-mj-063 DAD)

Five of the indictments were part of an Organized Crime Drug Enforcement Task Force. The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.

All defendants are in custody. At arraignment, the defendants entered pleas of not guilty. If convicted, the defendants face sentences from five years to life in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. When prosecuted in federal court, drug traffickers typically receive much harsher sentences. In addition to the longer sentences imposed there is no early release on parole in the federal system.

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

SACRAMENTO, Calif. — Stephen Gooden, 40, of Stockton, was sentenced on Thursday by United States District Judge Morrison C. England Jr. to one year in prison and a $1,000 fine for possessing a machine gun, United States Attorney Benjamin B. Wagner announced.

According to court documents, Gooden and Luis Castro, 28, of Sacramento, were members of the California National Guard and stole two M-4 machine guns from the National Guard’s armory in Lodi. Gooden then sold the machine guns to non-authorized persons in Stockton. ATF agents recovered the machine guns in an undercover operation.

“Today's sentencing reflects the true partnership among federal law enforcement agencies,” said Frank Robey, director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit (MPFU). “No criminal stands a chance against our MPFU agents working shoulder to shoulder with the ATF and other agencies. We hope that the sentence imposed today will deter others from engaging in similar illegal activity.”

This case was the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Army Criminal Investigation Command. Assistant United States Attorneys Paul Hemesath and Heiko Coppola prosecuted the case.

On August 22, 2013, Castro was sentenced for his involvement in the theft and sale of the machine guns to 20 months in prison.

SACRAMENTO, Calif. — A federal grand jury returned a 23-count indictment today against Mihran Melkonyan, 33, of Sacramento, and Androuslan Akhmerov, 39, of Los Angeles, for wire fraud and mail fraud in a scheme to defraud American Express account holders, United States Attorney Benjamin B. Wagner announced.

According to court documents, Melkonyan and Akhmerov were involved in a scheme to defraud more than 20,000 credit card holders by making false charges on their accounts. To do this, Melkonyan and Akhmerov created fictitious businesses with legitimate sounding names and then charged the victims’ accounts small amounts in the range of $15-30. By using many small charges the defendants made it less likely that the credit card holders or the credit card companies would discover the fraud.

This case is the product of an investigation by the Federal Bureau of Investigation and the United States Secret Service. Assistant United States Attorney Michael D. Anderson is prosecuting the case.

Akhmerov was arrested on March 5, 2014, and is currently released on bail. Melkonyan remains at large.

If convicted, Melkonyan and Akhmerov face a maximum statutory penalty of 20 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FRESNO, Calif. — A grand jury in Fresno returned three separate indictments today alleging offenses involving the sexual exploitation of minors, United States Attorney Benjamin B. Wagner announced.

In the first indictment, Tyler Bliss, 26, of Oakdale, was charged with one count of receiving and distributing child pornography from October 2013 through February 2014. According to a previously filed criminal complaint, Google reported to the National Center for Missing & Exploited Children (NCMEC) that on December 3, 2013, an image of suspected child pornography had been uploaded to a Google account. NCMEC referred the matter to law enforcement, and a detective with the Ceres Police Department discovered that the same Google account had been connected with the transmission of hundreds of other images of suspected child pornography. Additional investigation revealed that the account had been accessed from a residence in Oakdale as well as from a church in Oakdale. Computers and a cellphone were obtained through search warrants for both locations, and investigators found images related to the sexual exploitation of minors on these items. Bliss had been serving as Supervisor of Student Ministries at the church.

Bliss has been in custody since his arrest by FBI agents Wednesday. He is scheduled for arraignment today at 1:30 p.m. before U.S. Magistrate Judge Barbara A. McAuliffe. If convicted, he faces a maximum sentence of 20 years in prison, a $250,000 fine, and a lifetime of supervised release. (Docket # 1:14-CR-052 LJO)

This case is the result of an investigation by the Ceres Police Department and the Modesto FBI Office with initial assistance from the Sacramento County Sheriff’s Office. Anyone with information relevant to the investigation is encouraged to contact the Modesto office of the FBI at 209-543-7846.

In the second indictment, Allen Kendrick, 47, of Escalon, was charged with one count of receiving and distributing child pornography from June 2013 through December 2013. According to a previously filed criminal complaint, Google reported to NCMEC that on December 10, 2013, six images of suspected child pornography were associated with a Google account. NCMEC referred the matter to law enforcement, and a detective with the Ceres Police Department discovered that the Google account had been accessed from residences in Modesto and Escalon. Additional investigation revealed that Kendrick was a registered sex offender on GPS location monitoring, and the GPS records confirmed that Kendrick was at the residences in Modesto and Escalon when the child pornography had been accessed. This case is the result of an investigation by the Ceres Police Department and the Modesto FBI Office with assistance from the California Department of Corrections and Rehabilitation Division of Adult Parole Operations.

Kendrick has been ordered detained as a danger to the community and a flight risk. He will be arraigned on March 25, 2014, at 1:30 p.m. by Magistrate Judge Barbara A. McAuliffe. If convicted, he faces a maximum potential prison sentence of 40 years, a fine of up to $250,000, and a lifetime term of supervised release. (Docket # 1:14-CR-055-LJO)

In the third indictment, Lorenzo Hernandez Martinez, 37, of Bishop, was charged with one count of attempted transfer of obscene material to a minor. According to a criminal complaint, Martinez communicated through Facebook chats from mid-October 2013 through February 2014 with someone whom he believed to a 14-year-old girl in Oregon. Martinez quickly turned the communications in a sexual direction, and he repeatedly transmitted lewd 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 the defendant. When a search warrant was executed at his residence in Bishop on March 11, 2014, agents seized a cellphone that contained communications with the detective in Oregon and sexually explicit.

Martinez has been ordered detained as a danger to the community and a flight risk. If convicted, he faces a maximum prison term of 10 years, a potential fine of $250,000, and a three-year term of supervised release. He will be arraigned on March 24, 2014, at 1:30 p.m. by U.S. Magistrate Judge Barbara A. McAuliffe. (Docket # 1:14-CR-053 LJO)

Assistant United States Attorney David Gappa is prosecuting all three cases. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt. If the defendants are convicted, their sentence 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.

 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.usdoj.gov/psc. Click on the “resources” tab for information about Internet safety education.

SACRAMENTO, Calif. — Vincent Thakur Singh, 45, formerly of Elk Grove, pleaded guilty today to wire fraud and false statements in bankruptcy, United States Attorney Benjamin B. Wagner announced.

According to court documents, Singh carried out an investment fraud through an entity known as the Perfect Financial Group. He targeted 190 members of the ethnic Indian Fijian community for an investment fraud that grossed approximately $20 million. Singh told investors that he was using their money for hard money lending. In fact, Singh used $12 million of investors’ money for gambling, made $2 million in currency withdrawals, spent $880,000 on a film project, and spent more than $1 million on other business ventures. Singh also used millions of dollars of investor money to pay other victims and give Perfect Financial the false appearance of success.

According to the plea agreement, on August 19, 2010, Singh declared bankruptcy and failed to disclose 19 of the bank accounts that he had used in the investment fraud.

This case is the product of an investigation by the FBI with assistance from the office of the U.S. Trustee. Assistant United States Attorney Matthew D. Segal is prosecuting the case.

Singh is scheduled to be sentenced by Judge Morrison C. England Jr. on June 12, 2014. Singh faces a maximum statutory penalty of 20 years in prison for wire fraud and five years in prison for false statements in bankruptcy. 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 done in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.StopFraud.gov.

FRESNO, Calif. — Alfonso Castellon, 40, of Bakersfield, was indicted today on charges of counterfeiting U.S. currency and possessing images for counterfeiting purposes, United States Attorney Benjamin B. Wagner announced.

According to the court documents, from January 2011 to March 2014, Castellon counterfeited Federal Reserve Notes in $100 and other denominations. In March 2014, a search of his residence revealed sample images of $100 bills and computer equipment, printers, and ink associated with counterfeiting, along with a flash drive containing images of $100 bills.

This case is the product of an investigation by the United States Secret Service, the Kern County Sheriff’s Office, and the Bakersfield Police Department. Assistant United States Attorney Michael G. Tierney is prosecuting the case.

If Castellon is convicted, he faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory sentencing factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

SACRAMENTO, Calif. — Frances Marie Charles, 35, of Stockton, was arraigned today on seven counts of aggravated identity theft, mail fraud, access device fraud, and possession of 15 or more identification documents, United States Attorney Benjamin B. Wagner announced.

According to court documents, between June 2012 and December 2013, Charles participated in a scheme to obtain replacement American Express credit cards in the names and account numbers of others, and to use the credit cards to obtain cash, goods, and services at the expense of American Express, banks, and merchants. Charles placed calls to American Express and used identification and financial information of victims to cause the replacement cards to be sent to Stockton, after which the cards would be used to make fraudulent charges and purchases.

This case is the product of an investigation by the United States Secret Service. Assistant United States Attorney Christopher S. Hales is prosecuting the case. Charles is scheduled to appear before United States District Judge Troy L. Nunley on April 3, 2014, for a status conference.

If convicted, Charles faces maximum statutory penalties of 30 years in prison and a $1 million fine on each mail fraud count, 10 years in prison and a $250,000 fine for access device fraud, 15 years in prison and a $250,000 fine for possession of 15 or more identification documents, and not less than two years imprisonment for each aggravated identity theft count, consecutive to time on conviction for the underlying mail fraud 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.

FRESNO, Calif. — A complaint has been filed in the Fresno branch of the United States District Court against Derik Carson Kumagai, 40, a Fresno Police Department detective assigned to the Vice Unit and Saykham Somphoune, 40, of Clovis, charging them with conspiracy, bribery, and extortion, United States Attorney Benjamin B. Wagner announced.

“Prosecuting those who misuse their badge for personal gain is an important mission for the U.S. Department of Justice,” said US Attorney Wagner. “I am grateful for the assistance of Chief Dyer and the leadership of his Department in this investigation.”

According to court documents, detective Kumagai accepted a $20,000 bribe from an individual who was under investigation for marijuana trafficking (identified as Person Y). In return for the bribe payment, Kumagai and co-conspirator Somphoune promised Person Y that he would be signed up as a confidential informant for the Fresno PD. Somphoune is not a law enforcement officer.

In October and November 2013, Kumagai and Somphoune met with Person Y on several occasions and discussed the proposed bribe payment. On November 6, 2013, Person Y paid Kumagai approximately $20,000 cash. A few hours later, Person Y completed documents regarding work as a confidential informant for the Fresno Police Department.

This case is the product of an investigation by the Drug Enforcement Administration, Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant United States Attorneys Grant B. Rabenn and Kevin P. Rooney are prosecuting the case.

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

Complaint

FRESNO, Calif. — Charles Ray Benavidez, 33, an Aviation Ordnanceman (Second Class) stationed at the United States’ Naval Air Station in Lemoore, was sentenced today by United States District Judge Anthony W. Ishii to 10 years for sex trafficking of a minor, United States Attorney Benjamin B. Wagner announced.

According to court documents, in April 2013, Benavidez knowingly recruited a 17-year-old female to engage in commercial sex acts in Kings and Tulare Counties. Benavidez was charged with sex trafficking of a minor and has been in federal custody since May 23, 2013. He pleaded guilty to the child sex trafficking charge on January 6, 2014.

“For most people, criminal acts against children are impossible to comprehend, but for the children who have been sexually exploited, these crimes are all too real,” said Mike Prado, resident agent in charge of HSI Fresno. “The physical and emotional scars are difficult, if not impossible, to outgrow. HSI will continue to work tirelessly to ensure child predators and sex traffickers receive the justice they deserve.”

This case was the product of an investigation by the Central California Internet Crimes Against Children Task force, specifically the Fresno U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Naval Criminal Investigative Service (NCIS), as well as the Porterville, Tulare and Lemoore police departments. Assistant United States Attorney Brian W. Enos prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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, 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. —Vicente Rivaz-Felix, 28, an undocumented alien who was living in Los Angeles, pleaded guilty today to conspiracy to distribute and possess with the intent to distribute cocaine, United States Attorney Benjamin B. Wagner announced.

According to court documents, Rivaz-Felix’s co-defendants set up a Fresno trucking company intending that cocaine would be concealed in legitimate cargo to be shipped to Canada. On September 21, 2012, Rivaz-Felix delivered eight kilograms of cocaine to a courier who had been sent to Los Angeles by his co-defendants. Law enforcement seized that cocaine and followed Rivaz-Felix back to his Los Angeles residence. A search warrant was served there on September 21, 2012, and 40 more kilograms of cocaine were seized.

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

Rivaz-Felix has been held in custody without bail since his arrest on September 21, 2012. He is scheduled to be sentenced by Judge Anthony W. Ishii on June 2, 2014. Rivaz-Felix 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.

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

SACRAMENTO, Calif. — In the early hours of the morning, Nicholas Teausant, 20, of Acampo, Calif. was arrested near the Canadian border, in Blaine, Wash. He was charged today in a complaint containing a single count of attempting to provide material support to a foreign terrorist organization, United States Attorney Benjamin B. Wagner announced.

According to the complaint, Teausant traveled to the Canadian border with the intent of continuing to travel to Syria to join the Islamic State of Iraq and Syria, a foreign terrorist organization more widely known as al-Qaida in Iraq.

This case is the product of an investigation by the Federal Bureau of Investigation and the Modesto Police Department and San Joaquin Sheriff’s Office, who are members of the Modesto/Stockton Joint Terrorism Task Force, with significant assistance from U.S. Customs and Border Protection. Assistant United States Attorneys Jean M. Hobler and Jason S. Hitt are prosecuting the case in conjunction with Trial Attorney Andrew Sigler of the National Security Division of the U.S. Department of Justice.

Teausant is expected to make his initial appearance today in the United States District Court for the Western District of Washington at 2 p.m.

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

Complaint

FRESNO, Calif. — Alberto Morales, 31, of Modesto, was sentenced today by United States District Judge Lawrence J. O'Neill to 10 years in prison for possessing child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, on February 1, 2013, Morales possessed between 300 and 600 images depicting minors engaged in sexually explicit conduct. The images also involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of pre-pubescent minors. Morales was charged with possessing child pornography by way of an indictment dated February 14, 2013, and pleaded guilty to this charge on January 6, 2014. In light of a prior conviction, Morales faced a minimum statutory period of confinement of 10 years.

“Today’s prison sentence is a reminder of the serious crime that is committed when the images of innocent children are illegally traded in cyberspace,” said Mike Prado, resident agent in charge of HSI Fresno. “Targeting these predators is a top priority for HSI. We will work tirelessly to end this type of despicable child exploitation.”

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

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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, 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. —Victor Duane Smith, 59, of Fresno, pleaded guilty today to receipt of child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, in July 2013, law enforcement began tracking an individual who was using the Fresno County Public Library’s public wireless system to view child pornography through a file-sharing program. Investigators were able to match the computer Smith was using to the computer that had used the library’s system and watched him in the library while he used the program. Smith later confessed to the offense.

This case was the product of an investigation by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the Central California Internet Crimes Against Children Task Force, and the Fresno County Sheriff’s Office. Assistant United States Attorney Michael G. Tierney is prosecuting the case.

Smith is in currently in custody and is scheduled to be sentenced by Judge Anthony W. Ishii on June 2, 2014. Smith faces a possible sentence of five to 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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

SACRAMENTO, Calif. — William Brock, 37, of Glen Ellyn, Ill., was sentenced today to 15 years and eight months in prison and fined $250,000 for conspiring to distribute at least 100 kilograms of marijuana and possession with intent to distribute at least 100 kilograms of marijuana, United States Attorney Benjamin B. Wagner announced.

On November 6, 2013, Brock was convicted by a jury in Sacramento after a 2-and-a-half-day trial before Chief United States District Judge Morrison C. England Jr. At the sentencing hearing today, Judge England stated that this was the largest and most advanced and sophisticated marijuana distribution scheme that he had seen in his 12 years on the federal bench and six years as a California state court judge. Judge England also referred to the evidence against Brock as “overwhelming.”

According to testimony presented at trial, Brock, who is from a suburb of Chicago, was the target of an interstate marijuana distribution investigation conducted by the Will County Sheriff’s Department in Illinois, and which included a warehouse that Brock rented in North Highlands, Calif. As part of that investigation, Will County Sheriff’s deputies came to California in April 2012 to install a GPS tracking device on a vehicle believed to be used by Brock while he was in California. Brock discovered the GPS device after it was installed, apparently using a lookout, and switched vehicles, arriving at his warehouse unit in a minivan owned and driven by William Calvert. In Calvert’s van police found more than 200 pounds of processed marijuana in double vacuum-sealed bags that were contained in 45 cardboard boxes. Police then searched Brock’s warehouse unit, in which they found similar boxes containing more than 300 pounds of processed marijuana, also packed in double-vacuum-sealed bags.

At the same time as the searches were being conducted in California, Will County Sheriff’s deputies searched Brock’s storage unit and his residence in Illinois. They found processed marijuana, more than $150,000 in cash, and over $1 million in silver bullion and gold and silver coins.

This case was the product of an investigation by the Will County Sheriff’s Office, the Sacramento County Sheriff’s Department, the City of Folsom Police Department, and the Drug Enforcement Administration. Assistant United States Attorneys Todd Pickles and Jeffrey Spivak prosecuted the case.

FRESNO, Calif. — A federal grand jury returned a two-count indictment Thursday against Ramon Cano, 27, of Bakersfield, charging him with acceptance of a bribe by a federal official and possession with intent to distribute heroin and methamphetamine, United States Attorney Benjamin B. Wagner announced.

According to court documents, in November 2013, a federal inmate at Taft Correctional Institution contacted TCI investigators and told them that Cano, a full time contract correctional officer at TCI, was involved in smuggling heroin and methamphetamine into the prison in return for payments of cash.

According to the criminal complaint, on February 27, 2014, Cano met with an undercover agent in Bakersfield who provided Cano with $4,000 and an ounce of methamphetamine and an ounce of heroin that Cano agreed to smuggle into the federal prison. After the transaction, Cano was arrested as he walked back to his vehicle.

This case is the product of an investigation by the Federal Bureau of Investigation and the U.S. Department of Justice Office of the Inspector General. Assistant United States Attorney Brian K. Delaney is prosecuting the case.

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

SACRAMENTO, Calif. — Deepal Wannakuwatte, 63, of Sacramento, was charged today in a three-count indictment returned today with bank fraud and making false statements to a financial institution, United States Attorney Benjamin B. Wagner announced.

Wannakuwatte has been in custody since his arrest on February 21, 2014. He is scheduled to be arraigned on March 21, 2014.

According to the indictment, beginning in September 2011, Wannakuwatte sought a line of credit from Bridge Bank. He claimed the funds obtained through the line of credit would be used to improve a glove manufacturing facility he owned in Olivehurst. Wannakuwatte claimed that his companies, IMG and Relyaid, were involved in the international manufacture, shipment, and distribution of latex gloves and did more than $100 million of business with the Department of Veterans’ Affairs every year. These claims were not true but were made in order to appear more credit worthy. Upon receiving funds, Wannakuwatte used the money to pay outstanding debts unrelated to the purpose of the loan.

The indictment alleges that between October and December 2011, Wannakuwatte provided Bridge Bank with a number of false documents, including personal and corporate tax returns that overstated his gross income and the gross receipts and sales for IMG, a false corporate financial statement from IMG that was purportedly reviewed by a CPA, and a false accounts receivable ledger detailing more than $25 million in accounts receivable from the VA.

In early December 2011, Wannakuwatte set up a conference call between himself, an IMG employee, and a Bridge Bank representative. The conference call was made to verify the authenticity of the $25 million accounts receivable ledger provided by Wannakuwatte. At Wannakuwatte’s direction, the IMG employee pretended to be a VA representative. Using a series of talking points provided by Wannakuwatte, the IMG employee told the Bridge Bank representative that there were more than 60 invoices showing a total of more than $25.8 million in payments owed by the VA to IMG. In fact, there were no such invoices, and no such debt was owed by the VA to IMG.

Based on the false representations, Bridge Bank authorized a line of credit worth $4.5 million. Wannakuwatte subsequently drew down the line of credit, taking approximately $4.3 million from Bridge Bank.

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

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

FRESNO, Calif. — A federal grand jury returned a three-count indictment today charging Jose Trinidad Salas, 43, of McFarland, with conspiring to distribute and possess with the intent to distribute methamphetamine, cocaine and marijuana, being a felon in possession of a firearm, and being a person in the United States unlawfully in possession of a firearm, United States Attorney Benjamin B. Wagner announced.

The indictment alleges that between January 2010 and February 26, 2014, Salas and others conspired to distribute methamphetamine and other drugs. Court documents allege that pound quantities of methamphetamine were seized in New Mexico and Southern California from associates of Salas that are believed to have been destined for Mississippi. The indictment further alleges that Salas possessed firearms while being a prohibited person. Salas is alleged to have a felony conviction for a drug offense and also to be in the United States unlawfully.

This case is the product of an investigation by the Drug Enforcement Administration, the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kern County Sheriff’s Department, and the Bakersfield Police Department. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.

FRESNO, Calif. — A federal grand jury returned a 13-count indictment today charging Facundo Lopez-Perez, aka Jose Huerta Maldonado, aka Israel Lopez Zasueta, 43, of Del Rey, and Jorge Perez Robles, aka James Gonzalo Jara, 41, of Fresno, with conspiring to distribute and possess with the intent to distribute methamphetamine and heroin, United States Attorney Benjamin B. Wagner announced.

The indictment alleges that between January 2013 and February 25, 2014, Lopez-Perez and Robles sold methamphetamine and heroin to an undercover officer on numerous occasions. Lopez-Perez possessed more than 18 pounds of methamphetamine and more than one kilogram of heroin.

This case is the product of an investigation by a Drug Enforcement Administration Task Force made up of members of Federal, state and local law enforcement agencies including the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the California Highway Patrol. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.

If convicted, the defendants face a 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 defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

WASHINGTON – Anthony Merrell Tyler, 33, pleaded guilty in federal court today to violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act for his role in a 2011 racially motivated attack on a white man and an African-American woman in Marysville, Calif. Tyler’s co-defendants, Billy James Hammett, 30, and Perry Sylvester Jackson, 28, pleaded guilty to the same offense on Dec. 17, 2013.

According to documents filed with the court, around 10:45 p.m. on April 18, 2011, a white man and an African-American woman parked their car at a convenience store in Marysville. Shortly afterward, the three defendants, each of whom has white supremacist tattoos, attacked the man and woman based on race. After calling the male victim a “[racial slur]-lover,” Jackson punched him twice in the head through the open passenger window. At the same time, Hammett kicked the woman in the chest. A few seconds later, Tyler smashed the car’s windshield with a crowbar. As the attack continued, the woman managed to take refuge inside the convenience store. All three assailants then descended upon the male victim and began attacking him in the parking lot. He sustained abrasions on his right forearm and knees, while the woman suffered bruising to her chest. At the end of the incident, Tyler used a racial slur to refer to an African-American witness.

“These defendants attacked the victims simply because of race,” said Acting Assistant Attorney General for the Civil Rights Division Jocelyn Samuels. “Such violence and intimidation have no place in our society. Where these acts occur, the Department will continue to aggressively prosecute them.”

“Diligently prosecuting hate crimes such as the unprovoked, racially motivated assault in this case has been a core mission of the U.S. Attorney’s Office in this district,” said U.S. Attorney Benjamin B. Wagner for the Eastern District of California. “That mission will continue.”

Tyler’s sentencing is scheduled for July 8, 2014. Hammett is scheduled to be sentenced on March 25, 2014, and Jackson has requested a sentencing date of April 22, 2014. Each defendant faces a statutory maximum sentence of 10 years in prison and a fine of $250,000.

This case was investigated by the FBI. The case is being prosecuted by U.S. Attorney Wagner and Trial Attorney Chiraag Bains of the Civil Rights Division.

SACRAMENTO, Calif. — Barbara Eberle, 66, and Robert Eberle, 75, both of Oxford, Ga. but formerly of Chico, Calif. were sentenced today by United States District Judge Garland E. Burrell Jr. to five years in prison and ordered to pay more than $13.2 million in restitution, United States Attorney Benjamin B. Wagner announced. The Eberles pleaded guilty to securities fraud on July 20, 2012.

The defendants were indicted on August 22, 2007, for a fraud scheme that involved life settlement insurance contracts or viaticals. A “life settlement” or “viatical settlement” was a transaction in which a person sold the death benefit of his or her life insurance policy to a third party in return for a lump sum cash payment, which represented a discounted percentage of the policy’s face value. The insured was usually ill or elderly and would sell his or her interest in the insurance policy to a company. That company would resell the interest to investors, in whole, or as fractional interests. The return on the investment depended on the length of time the ill or elderly person lived, with a greater return the sooner the insured person died. If the insured person did not die, there was no return on the investment. The life expectancy of the insured person was to be estimated by a medical doctor, after a review of the insured person’s medical records.

According to court documents, Donald Neuhaus operated a number of businesses for the purpose of acquiring viaticals and life settlements from insured people and marketing these viaticals and life settlements to investors. He had sales people working on his behalf, including Robert and Barbara Eberle, who sold fractionalized interests in these viaticals.
Robert Eberle owned Lexus Financial and later Eagle Investments in Chico with his wife Barbara Eberle. Robert and Barbara Eberle were the primary sales force for Donald Neuhaus. They created marketing materials and sold viaticals and life settlements to investors on behalf of Donald Neuhaus. Robert Eberle also recruited salespeople, such as co-defendant Robert Koppel, to work as independent contractors selling Neuhaus’s policies.

According to court documents, from 2001 until 2006, the Eberles made material misrepresentations and omissions when selling the life settlement insurance contracts to investors. For example, they told investors that the investments were safe, secure, and risk free and that investors were guaranteed high rates of return. As a result of their fraud, investors lost at least $13.2 million.

In February 2003, the California Department of Corporations issued a desist and refrain (D&R) order prohibiting Robert Eberle  and Barbara Eberle and Lexus Financial Group from selling viaticals and life settlements in the State of California. The Eberles continued to sell life settlements in the States of California until 2006.

According to court documents, Donald Neuhaus died in November 27, 2007. Other defendants were previously sentenced: Mark Wolok to five years in prison, Kimberly Snowden to nine months in prison, Clifford Palm to one year in prison, and Robert Koppel to three years’ probation.

This case is the product of an investigation by the IRS-Criminal Investigation with assistance from the U.S. Postal Inspection Service. Assistant United States Attorney Lee Bickley prosecuted the case. The defendants were remanded into custody on March 7, 2014.

WASHINGTON—A federal inmate pleaded guilty today for the murder of United States Correctional Officer Jose Rivera, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Benjamin Wagner for the Eastern District of California.

James Ninete Leon Guerrero, 48, of Guam, pleaded guilty before U.S. District Judge Phillip Pro to one count of murder by a federal prisoner serving a life sentence. According to court documents, Guerrero aided and abetted co-defendant Jose Cabrera Sablan in the stabbing death of Officer Rivera.

Court documents allege that on June 20, 2008, as Officer Rivera was on duty conducting his daily count in the United States Penitentiary in Atwater, Calif., Sablan attacked him with an eight-inch homemade shank. Officer Rivera tried to flee, but he was knocked backwards by Sablan and tackled by Guerrero. Guerrero held Officer Rivera down as Sablan stabbed him with the shank more than 20 times. Officer Rivera was 22 years old at the time of his death and was a United States Navy veteran.

Sablan and Guerrero were indicted for murder on Aug. 14, 2008. As a result of Guerrero’s plea, he faces a mandatory sentence of life in prison. His sentencing has been scheduled for May 30, 2014, at 2:00 p.m. in the Eastern District of California.

Sablan’s case is set for trial on April 6, 2015. He is presumed innocent until and unless proven guilty beyond a reasonable doubt.

The investigation was conducted by the Bureau of Prisons and the FBI. This case is being prosecuted by Trial Attorney Bonnie Hannan of the Criminal Division’s Capital Case Section and Assistant U.S. Attorney Duce Rice of the Eastern District of California.

FRESNO, Calif. —David Ruem, 32, of Tacoma, Wash., pleaded guilty today to one count of conspiring to distribute oxycodone and hydrocodone, one count of conspiring to structure cash deposits, and one count of aggravated structuring, United States Attorney Benjamin B. Wagner announced.

According to court documents, Ruem’s co-conspirators obtained prescriptions for oxycodone and hydrocodone from a doctor in Visalia, Calif., filled those prescriptions at pharmacies in Modesto, and then transported and mailed the pills to Washington for distribution on the black market. Ruem illegally sold the oxycodone and hydrocodone and then deposited the cash proceeds of those sales into bank accounts held by co-conspirators in California. He made the cash deposits in amounts of $10,000 or less to attempt to prevent Currency Transactions Reports from being filed by the banks on his cash deposits. Currency Transactions Reports are reports prepared by financial institutions for any transaction involving more than $10,000 in cash. These reports are filed with the Department of Treasury and are made available to law enforcement.

Ruem is scheduled to be sentenced by Judge Anthony W. Ishii on June 2, 2014. Ruem faces up to 20 years in prison and a $1 million fine for conspiring to distribute oxycodone, up to five years in prison and a $250,000 fine for conspiring to structure, and up to 10 years in prison and a $500,000 fine for aggravated structuring. 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 Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act. This case is also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multijurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorney Grant B. Rabenn is prosecuting the case.

FRESNO, Calif. — Bounseuth Thourakhone, 54, of Laos, was sentenced to three years and three months in prison and Bounhome Singharath, 63, of Las Vegas, entered a guilty plea today for their involvement in a marijuana cultivation operation in Squaw Valley in eastern Fresno County, U.S. Attorney Benjamin B. Wagner announced.

According to court documents, law enforcement officers found 1,429 marijuana plants at a grow site on Ripple Lane in Squaw Valley. Singharath was leaving the grow site in knee high rubber boots and camouflage pants and Thourakhone was hiding in the bathroom of a trailer on the property. Singharath said he is a resident of Las Vegas and had been living at the grow site for approximately two months for the purpose of growing marijuana. Thourakhone also admitted to growing marijuana there.

Singharath is scheduled for sentencing on May 19, 2014. He faces a mandatory minimum prison term of 10 years, a maximum prison term of life 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 Fresno County Sheriff’s Office. Assistant U.S. Attorney Karen A. Escobar is prosecuting the case.

FRESNO, Calif. — Stephen J. Johnson, 66, of Linden, was sentenced today by United States District Judge Lawrence J. O'Neill to 15 months in prison for committing perjury before a federal grand jury and making false statements to the FBI United States Attorney Benjamin B. Wagner announced.

According to court documents, Johnson, a law enforcement dog trainer who worked in the Central Valley, was charged with conspiring to obstruct an FBI investigation into Bob Holloway, former owner of Road Dog Cycle in Denair, along with Holloway, retired Stanislaus County Deputy Sheriff Dave Swanson, and Gary Ermoian, a private investigator from Stanislaus County. Johnson was also charged with two counts of making false statements to the FBI and six counts of perjury before a federal grand jury.

At trial, the wiretap evidence revealed that in September 2007, Ermoian, acting on confidential law enforcement information received from Swanson, alerted Holloway that search warrants might be executed at Holloway's residence and business. Thereafter, Ermoian and Holloway discussed how to hide evidence from law enforcement, and, along with Johnson, discussed possible law enforcement surveillance activity at Road Dog Cycle. However, when interviewed by the FBI in 2008, Johnson denied assisting Holloway in hiding evidence and informing Holloway about law enforcement surveillance. Johnson then testified under oath before a federal grand jury later in 2008 and further denied assisting Holloway.

Ermoian and Johnson were convicted at trial on all charges, but Swanson was acquitted. Holloway had pleaded guilty to racketeering charges prior to trial. Last year, the Ninth Circuit Court of Appeals reversed the obstruction of justice count against Ermoian and Johnson. Johnson therefore had to be re-sentenced on the perjury and false statement counts of which he was convicted.

This case was the product of an investigation by the Central Valley Gang Impact Task Force, a task force composed of state and federal law enforcement agencies, including the Modesto Police Department, the Stanislaus County Sheriff's Department, the Stanislaus County District Attorney's Office and the FBI. Assistant United States Attorneys Mark E. Cullers and Laurel J. Montoya prosecuted the case.

FRESNO, Calif. — Sergio Patrick Rodriguez, 26, of Clovis, Calif., was sentenced today to 14 years in prison for aiming a laser pointer at Fresno police helicopter Air 1, and attempting to interfere with its operation, United States Attorney Benjamin B. Wagner announced. Calling him a “walking crime spree,” United States District Judge Lawrence J. O'Neill said the crime was serious with potentially deadly consequences.

Rodriguez and his girlfriend, Jennifer Lorraine Coleman, 23, were both convicted by a federal jury after a three–day trial in Fresno in December 2013.

According to evidence presented at trial, Rodriguez and Coleman used a high-powered green laser pointer to repeatedly strike the cockpit of Air 1 during a clear summer night in 2012. Air 1 had responded to the apartment complex where Rodriguez and Coleman resided near the Fresno Yosemite International Airport to investigate the report of laser strikes on Air George, an emergency transport helicopter for Children’s Hospital of Central California. The laser pointer that Rodriguez and Coleman used was 13 times more powerful than the permissible power emission level for hand-held laser devices. The crew members of both Air 1 and Air George testified that the laser strikes caused significant visual interference.

In imposing the sentence, Judge O’Neill considered not only the severity of the offenses but Rodriguez’s significant criminal history, numerous probation violations, and Bulldog gang affiliation. In addition, Dr. Leon McLin, a Senior Research Optometrist for the Air Force Research Laboratory who testified at trial, indicated at sentencing that the laser pointer that Rodriguez used was an instrument capable of inflicting serious bodily injury and, indirectly, death due to a high potential for crash caused by visual interference.

“We in federal law enforcement understand the dangers posed by laser strikes on aircraft,” U.S. Attorney Wagner stated. “This is not a game. It is dangerous, and it is a felony. Those who aim lasers at aircraft should know that we will seek to convict them, and we will seek to send them to prison. The safety of aircraft and the people in them demands no less.”

“Lasing aircraft is not a joke or a casual prank. It is reckless behavior that can have fatal consequences for air crew, passengers and the public on the ground,” said Special Agent in Charge Monica M. Miller of the FBI’s Sacramento field office. “Rodriguez’s sentence clearly demonstrates the seriousness of his actions and that the FBI will work with its law enforcement partners to locate and arrest those who engage in dangerous, improper use of hand-held lasers that puts us all at risk.”

“Deliberately pointing a laser at an aircraft is a criminal act with serious safety repercussions,” said FAA Administrator Michael Huerta. “We applaud law enforcement agencies and the U.S. Attorney's Office for their efforts to combat this serious problem.”

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Clovis and Fresno Police Departments, the Federal Aviation Administration, and the National Institute of Standards and Technology of the U.S. Department of Commerce. Assistant United States Attorneys Karen A. Escobar and Michael G. Tierney are prosecuting the case.

Sentencing for co-defendant Coleman is set for May 12, 2014. She faces a maximum statutory penalty of five years in prison and a $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

According to the FAA, there were 3,960 reports of people shining lasers at aircraft in the United States in 2013. The Eastern District of California, which encompasses 34 counties in the eastern portion of California, reported 94 laser strikes, with the largest number of laser incidents reported by the Fresno Yosemite International Airport and Bakersfield Meadows Field Airport. 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.

On February 11, 2014, in 12 cities, the FBI, in collaboration with the Air Line Pilots Association International and the FAA, announced the Laser Threat Awareness campaign, a nationwide effort to alert the public to the threat that aircraft laser illumination poses and the penalties for such activity. The FBI will offer up to $10,000 for information leading to the arrest of any individual who intentionally aims a laser at an aircraft. If you have information about a laser strike, contact your local FBI office. Tips can also be submitted online at https://tips.fbi.gov. If you see someone pointing a laser at an aircraft, call 911.

FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Emilio Perez-Solis, 39, of Oakland, and Hernan Cortes, 53, of Tulare, charging them with criminal copyright infringement for private financial gain, criminal copyright infringement, trafficking in counterfeit labels, documentation and packaging, and conspiracy, United States Attorney Benjamin B. Wagner announced.

According to court documents, the defendants used an agriculture building in Fresno as a distribution point for counterfeit CDs and counterfeit DVDs. From the building, Perez-Solis sold counterfeit CDs and DVDs, including movies that were only in theatrical release and not yet available on DVD. Cortes assisted Perez-Solis in distributing counterfeit media from the building. On February 21, 2014, the building in Fresno County was found to contain approximately 70,000 counterfeit music CDs and movie DVDs.

This case is the product of an investigation by the U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI), with assistance from the Fresno County Sheriff's Department. Assistant United States Attorneys Henry Z. Carbajal III and Patrick R. Delahunty are prosecuting the case.

"Commercial piracy and product counterfeiting undermine the U.S. economy, rob Americans of jobs, stifle American innovation and promote other types of crime," said Mike Prado, resident agent in charge of HSI Fresno. "Intellectual property theft amounts to economic sabotage, which is why HSI will continue to aggressively pursue product counterfeiters and those who sell counterfeit products."

Perez-Solis and Cortes are currently in custody, and are scheduled to be arraigned in Fresno on March 10, 2014, at 1:30 p.m. If convicted, Perez-Solis and Cortes face a maximum statutory penalty of five years in prison and a $250,000 fine for the conspiracy, copyright infringement for financial gain, and trafficking in counterfeit labels charges. Criminal copyright infringement carries a maximum statutory penalty of three years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Individuals can provide invaluable assistance to HSI by reporting suspicious criminal activity to the HSI Tip Line at 866-DHS-2ICE (866-347-2423).

SACRAMENTO, Calif. — Susan Yvonne Eversoll, 46, of Sacramento, was sentenced this morning by U.S. District Court Judge Troy L. Nunley to 18 months in prison, to be followed by three years of supervised release and a $5,000 fine, for conspiring to traffic in counterfeit goods, United States Attorney Benjamin B. Wagner announced.

This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Sheriff’s Hi-Tech Crimes Task Force. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.

According to court documents, law enforcement received information about “Viagra” and “Cialis” being offered for sale through the Internet on Craigslist. Law enforcement later conducted controlled drug purchases of counterfeit Viagra from co-defendant Rickey Lee Campbell, 60, of Sacramento, who used the alias “Diamond Jim.” Eversoll and Campbell’s residences were searched and more than 6,000 counterfeit tablets resembling Viagra and Cialis in shape, size, and color were found. Authorities also recovered computers and electronic devices the conspirators used to sell the counterfeit goods.

Campbell has pleaded guilty to the conspiracy and is scheduled to be sentenced on May 8, 2014. He faces up to 10 years in prison for his leadership role in the conspiracy. His 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 two-count indictment today against Brian Caputo, 25, of Arvin, charging him with sexual exploitation of a minor and receipt and distribution of child pornography, United States Attorney Benjamin B. Wagner announced.

According to court documents, Caputo for the past eight years has used social media accounts with Facebook, Kik Messenger, Text Me! as well as Yahoo! and Dropbox accounts to communicate with dozens of minor females throughout the United States while posing as a minor female. Soon after establishing communication with the minor females, Caputo would threaten to reveal sexually explicit images of their friends unless the minor females created and sent to him images of themselves nude or engaging in sexually explicit conduct. In June 2013, Caputo contacted a 12-year-old girl in El Paso, Texas and threatened to distribute sexually explicit pictures of her 11-year-old friend unless she sent nude images of herself to Caputo. She told a family member who contacted the El Paso Police Department, and they started an investigation.

When law enforcement investigators traced the threatening communications to Caputo, they discovered that he had been victimizing many other minor females across the United States. For example, Caputo convinced one minor female to take and then upload more than 660 sexually explicit images of herself to a Dropbox account controlled by Caputo. When agents executed a search warrant at his residence in Arvin, on February 28, 2014, Caputo's cell phone contained hundreds of images of girls ages 11-15 undressing, nude, or engaging in sexually explicit conduct. Caputo then traded the images with other Internet users.

To date, at least eight minor females have been identified, although law enforcement is attempting to confirm the identity of many other victims. Caputo established Facebook accounts, and contacted minor females, using the names Giavanna Derann, Catness Love, Melissa Harpson, Cristal Dafnie, and Britt Any. Anyone who believes that they might have been a victim of Caputo's offenses is encouraged to contact the FBI's Bakersfield office at (661) 323-9665.

The investigation of this case is ongoing and has been done by the Federal Bureau of Investigation Offices in El Paso, Texas and Bakersfield, Calif., with assistance from the El Paso Police Department and the FBI's Violent Crimes Against Children Task Force. Assistant United States Attorney David Gappa is prosecuting the case. Caputo is scheduled to appear before United States Magistrate Judge Sheila K. Oberto on Monday, March 10, 2014, at 1:30 p.m. for arraignment and to determine whether he should remain detained or be released on bond.

If convicted, Caputo faces a maximum statutory penalty of 30 years in prison for sexual exploitation of a minor and 20 years in prison for receipt or distribution of child pornography 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.

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

SACRAMENTO, Calif. — Joshua Anthony Bond, 25, of Grants Pass, Ore., pleaded guilty today to illicit trafficking in controlled substances and being a felon in possession of firearms, United States Attorney Benjamin B. Wagner announced.

This case is the product of an investigation by the Federal Bureau of Investigation, the Willows office of the California Highway Patrol, and the Glenn County Sheriff's Department. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.

According to court documents, on July 11, 2013, a CHP officer observed Bond speeding on Interstate 5 near County Road 57 in Glenn County. The CHP officer followed Bond at high speeds as Bond turned off the highway and through residential neighborhoods in Willows. During his flight, Bond threw a loaded .380-caliber handgun onto a residential street. Bond eventually lost control in a residential cul-de-sac; he was then taken into custody.

Law enforcement officers seized a 9 mm sub-machine gun, a 12 gauge pump shotgun, various types of ammunition, 210 grams of methamphetamine, and two body armor plates.

Bond is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on May 22, 2014. The charges to which Bond pleaded guilty carry a possible sentence of up to life in prison. The plea agreement contemplates a sentence of 15 to 17.5 years in prison. The actual sentence, however, will be determined at the discretion of the court at the hearing.

SACRAMENTO, Calif. —Kyle Michael Hall, 24, of Woodland, pleaded guilty today to distribution of child pornography, United States Attorney Benjamin B. Wagner announced.

According to the plea agreement filed in the case, on November 28, 2012, Hall was arrested after attempting to force a woman into his truck that was parked in a Raley’s parking lot in Woodland. Hall was a transient living out of his truck in the Woodland area. Upon his arrest, Hall turned his personal property over to a friend.

The next day, Hall’s friend brought Hall’s computer to the Woodland police station. He said that he had been looking through it and found some “disgusting” things. Located on the computer were approximately 108 images and 115 videos of child pornography. In addition, forensic analysts with the Yolo County District Attorney’s Office located multiple instant messages on the computer. In these messages, Hall discussed child pornography and traded images and videos.

The computer forensic analysis also identified multiple Skype chats in which Hall spoke with minors about sexually explicit topics. In one exchange with a 17-year-old from Santa Fe, New Mexico, Hall asked if he could drive to New Mexico to pick up the girl. In other chats, Hall offered money to minors in an attempt to entice them into sending him sexually explicit photos or videos.

This case is the product of an investigation by the Woodland Police Department and the Yolo County District Attorney’s Office. Assistant United States Attorneys Kyle Reardon and Olusere Olowoyeye are prosecuting the case.

Hall is scheduled to be sentenced by Judge Lawrence K. Karlton on May 20, 2014. Hall faces a penalty of five to 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This prosecution is part of the Department of Justice’s ongoing Project Safe Childhood initiative which was launched to increase federal prosecutions of sexual predators of children, and to reduce the number of Internet crimes against children including child pornography trafficking. As a part of PSC, the United States Attorney’s Office has teamed with state and local agencies and organizations to increase law enforcement presence on the Internet, and to educate the public about safe Internet use, thereby reducing the risk that children might fall prey to online sexual predators. For additional information on the PSC initiative, please go to www.projectsafechildhood.gov.

SACRAMENTO, Calif. —John Hagener, 77, of Granite Bay, and Dawn C. Powers, 43, of Lincoln, separately pleaded guilty today to conspiracy charges, United States Attorney Benjamin B. Wagner announced.

According to court documents, Hagener pleaded guilty to conspiring to commit mail fraud, and Powers pleaded guilty to conspiring to commit wire fraud for their involvement in a mortgage fraud conspiracy and a large-scale Ponzi scheme in Northern California allegedly run by Lawrence Lee Loomis, aka Lawrence Leland Loomis. Loomis and his father-in-law, Hagener, operated a Ponzi scheme in 2007 and 2008 that victimized more than 100 people and caused more than $7 million of losses related to the sale of shares in an investment program called the Naras Funds.

A previously filed indictment charged Loomis and four other defendants, including Powers, in two related mortgage fraud schemes that caused more than $10 million in losses to mortgage lenders and others. The charges are pending against Loomis and three other defendants. An October 2014 trial date has been set before Judge John A. Mendez in Sacramento. The charges are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case was the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Paul A. Hemesath is prosecuting the case. The Securities and Exchange Commission has filed separate proceedings against Hagener in an ongoing case.

Hagener and Powers are scheduled to be sentenced by Judge John A. Mendez on June 10, 2014. They face a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

FRESNO, Calif. —Travis Raymond Wilson, 38, of Huntington Beach, Calif., was sentenced yesterday by Judge Anthony W. Ishii to two years of probation for structuring, United States Attorney Benjamin B. Wagner announced.

The Bank Secrecy Act requires financial institutions, such as banks, to file Currency Transaction Reports (CTR) on any cash transaction in an amount greater than $10,000. CTRs are filed with the United States Department of Treasury and are made available to law enforcement agencies, such as the Federal Bureau of Investigation. It is a federal crime to make cash deposits in an amount of $10,000 or less with the intent to prevent a financial institution from filing CTRs such transactions.

According to court documents, Wilson was a special agent with the Federal Bureau of Investigation beginning in 2004 and continuing through 2013. He was most recently a supervisory special agent in the FBI Long Beach Resident Office of the Los Angeles Field Office until his resignation from the FBI in December 2013. Between January 2008 and February 2013, Wilson regularly gambled at casinos in California, Nevada, Arizona, and West Virginia. Even though he frequently left the Casinos with more than $10,000 cash, Wilson regularly made deposits in amounts of $10,000 or less into his bank account. Wilson structured his cash deposits to attempt to prevent CTRs from being filed on him because he did want not the FBI to become aware of his gambling activities. In total, Wilson structured more than $488,000 in cash into his bank account over this time period.

This case was the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Department of Justice Office of Inspector General, and the Central California Financial Crimes Task Force. Assistant United States Attorney Grant B. Rabenn prosecuted the case.

SACRAMENTO, Calif. — A federal grand jury returned a sealed three-count indictment on February 27, 2014, against Kamyar Soltani, 45, of El Dorado Hills, charging him with attempted tax evasion, United States Attorney Benjamin B. Wagner announced. The pending indictment was unsealed today.

Soltani was arrested on Monday, March 3, 2014. He was arraigned and pleaded not guilty. He was released on a $100,000 bond.

According to IRS-Criminal Investigation Special Agent in Charge José M. Martinez, “All Americans have a duty to pay their fair share. The prosecution of individuals who intentionally conceal income and evade taxes is a vital element in maintaining public confidence in our tax system. We should not expect the honest taxpayer to foot the bill for those who hide income from the IRS."

According to court documents, Soltani attempted to evade his tax obligations for the tax years of 2005, 2006, and 2007. In each of those years, Soltani received income subject to taxation of well-over $200,000, and failed to file timely income tax returns for the tax years of 2005 and 2006. He ultimately filed tax returns for all three tax years in March 2008, but those returns were false; the resulting tax due and owing over three years totaled more than $150,000. Moreover, as alleged in the indictment, Soltani attempted to evade the proper assessment of his tax obligations by, among other things: receiving compensation in cash; having his compensation paid directly to, or in the names of, nominees, family members, and a creditor; concealing his income in his parents’ bank account; and filing three false tax returns in March 2008.

This case was the product of an investigation by the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Nirav Desai is prosecuting the case.

If convicted, Soltani faces a maximum statutory penalty of five years in prison and a $100,000 fine on each count in the indictment. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.