FEDERAL DISTRICT ARCHIVE
Southern District of California
Press releases recorded for this federal judicial district.
Woman Sentenced to 31 Months in Prison for Stealing Stimulus Payments and Purchasing Mercedes-Benz and JewelryRead the Press Release
NEWS RELEASE SUMMARY – December 18, 2023
SAN DIEGO – Alexandra Crystal Jackson was sentenced in federal court today to 31 months in prison for using the personal information of others to obtain Economic Impact Payments from the IRS and benefit payments from California’s Employment Development Department and spending the proceeds on luxury goods.
Jackson pleaded guilty on September 21, 2023. In her plea agreement, Jackson admitted that she collected personal information from homeless and low-income individuals as well as detainees at local detention facilities. She admitted she used the information to apply for Economic Impact Payments, commonly referred to as “stimulus checks,” and directed payments to bank accounts she controlled. Jackson also admitted to using the information to apply for benefit payments from California’s Employment Development Department (EDD), and to receiving at least 40 EDD debit cards in the names of others. Jackson used the EDD debit cards to withdraw cash from ATMs and to pay for jewelry, furniture, and a Mercedes-Benz G-Glass 550 SUV that the IRS seized.
U.S. District Judge Gonzalo P. Curiel also ordered Jackson to pay restitution and entered a preliminary forfeiture order for the Mercedes-Benz.
Jackson’s co-defendant, Demetrius Montre McFarland, previously admitted he provided Jackson with the personal information of his fellow detainees at the Vista Detention Center. McFarland entered a guilty plea on December 11, 2023, and his sentencing hearing is set for March 5, 2024.
“These government programs were meant to help California residents get through the pandemic,” said U.S. Attorney Tara McGrath. “They were not intended as a get-rich-quick scheme for criminals who want a Mercedes.”
“Taking advantage of some of our communities’ most vulnerable adults and conspiring with your spouse to line your pockets is deplorable,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “The Economic Impact Payments were meant to help our communities during a time of crisis. Ms. Jackson and her husband abused the system and now Ms. Jackson will have time to reflect on her actions. IRS:CI is committed to identifying and investigating these types of schemes which includes the seizure of any assets purchased with funds stolen from these relief programs. We are dedicated to bringing justice to our communities affected by these types of schemes.”
This case is being prosecuted by Assistant U.S. Attorneys Eric R. Olah and Joseph Orabona.
DEFENDANTS Case Number 23-CR-1098-GPC
Alexandra Crystal Jackson Age: 32 San Diego, CA
Demetrius Montre McFarland Age: 31 San Diego, CA
SUMMARY OF CHARGES
Conspiracy–Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine
AGENCY
Internal Revenue Service, Criminal Investigation
Man Pleads Guilty to Aiming Laser at San Diego Sheriff’s HelicopterRead the Press Release
NEWS RELEASE SUMMARY – December 14, 2023
SAN DIEGO – Ruben Ricardo Rodriguez pleaded guilty in federal court today to aiming a laser at a San Diego Sheriff’s helicopter.
According to admissions in his plea agreement, on June 12, 2021, the Federal Aviation Administration (FAA) control tower at San Diego International Airport received multiple reports of a green laser striking commercial aircraft while they were landing. The FAA notified the San Diego Sheriff’s helicopter ASTREA of the laser strikes and gave the approximate location of the origin of the laser near National City, CA.
ASTREA, an acronym for Aerial Support To Regional Enforcement Agencies, the air support unit of the San Diego County Sheriff's Department, responded to the area and was struck in the cockpit by a green laser. The entire helicopter illuminated green in the sky. Video captured Rodriguez walking around a house while pointing the laser at the ground and across the street. Rodriguez then looked at ASTREA and aimed the laser at it again. The pilot said the laser strike created a bright dazzling effect on the aircraft’s glass. The laser struck the other deputy onboard in the eyes.
“Laser pointers are not toys, and aiming them at aircraft is a crime, not a prank,” said U.S. Attorney Tara McGrath. “Pilots could be blinded or incapacitated, causing deadly accidents.”
“Pointing a laser at an aircraft is a serious criminal act and can have potentially deadly consequences,” said FBI San Diego Acting Special Agent in Charge Jamie Arnold. “The FBI and its partner agencies take allegations of interfering with the operation of an aircraft seriously and encourage anyone with information about such incidents or if they see someone pointing a laser at an aircraft to report it to the FBI.”
Rodriguez is scheduled to be sentenced on March 4, 2024, at 9 a.m. before U.S. District Judge Cynthia A. Bashant.
This case is being prosecuted by Assistant U.S. Attorneys Jaclyn Stahl, Edward Chang, and Shivanjali Sewak.
DEFENDANT Case Number 23-CR-1467-BAS
Ruben Ricardo Rodriguez Age: 33 Logan, UT
SUMMARY OF CHARGES
Aiming a laser pointer at an aircraft – 18 U.S.C. § 39A
Maximum penalty: Five years in custody and a $250,000 fine
AGENCY
Federal Bureau of Investigation
Captain and Co-Captain Sentenced for Maritime Smuggling Effort That Left Three DeadRead the Press Release
NEWS RELEASE SUMMARY – December 14, 2023
SAN DIEGO – The captain and co-captain of a boat that capsized off Imperial Beach during a 2022 smuggling incident, resulting in the deaths of three people, were sentenced in federal court today to 54 and 50 months in prison, respectively.
Jorge Armando Preciado-Vasquez, the captain, and Alexis Martinez-Preciado, the co-captain and navigator, attempted to smuggle seven adults and an unaccompanied minor from Mexico into the United States over Thanksgiving weekend in 2022.
The victims were a 39-year-old woman and 47-year-old man, both from Mexico; and a still unidentified young woman, believed to be from Guatemala.
According to plea agreements and the government’s sentencing documents, the defendants navigated the open-hull craft from Mexico on the open ocean through the night until they approached Imperial Beach early in the morning on November 26. As they approached the shore, at approximately 6 a.m., the defendants directed all eight people on board to take off their life vests, a common practice so passengers are quicker and more inconspicuous making their way to the shore.
Soon after removing the life jackets, however, the panga boat overturned as shown in the images below. The three victims drowned despite the best efforts of surfers, witnesses and Imperial Beach lifeguards to rescue them.
Two bodies were recovered that morning; the third was discovered on the beach days later.
“This case is a horrible tragedy and three lives were needlessly lost when profiteering overtook caution,” said U. S. Attorney Tara McGrath. “Criminal smuggling organizations consistently disregard the welfare of the human beings they smuggle.”
“Maritime human smuggling is an incredibly dangerous tactic which has claimed numerous lives. However, transnational criminal organizations have no regard for human life and continue to enrich themselves using the tactic,” said Chad Plantz, Special Agent in Charge for Homeland Security Investigations San Diego. “HSI is committed to using all means at our disposal to investigate and hold accountable those placing human beings at substantial risk of injury and death.”
This case is being prosecuted by Assistant U.S. Attorneys Peter Horn and Ronald Sou.
DEFENDANTS Case Number 22-CR-2928-TWR
Jorge Armando Preciado-Vasquez Age: 30 Baja California, Mexico
Alexis Martinez-Preciado Age: 20 Baja California, Mexico
SUMMARY OF CHARGES
Bringing in Aliens for Financial Gain and Aiding and Abetting – Title 8, U.S.C., Section 1324(a)(2)(B)(ii); Title 18, U.S.C., Section 2
Penalties: Mandatory minimum of three years and maximum of ten years in prison, and up to a $250,000 fine
AGENCIES
Homeland Security Investigations – San Diego Marine Task Force
United States Border Patrol
United States Customs and Border Protection
United States Coast Guard
San Diego County Sheriff’s Department
San Diego Harbor Police Department
San Diego County Medical Examiner’s Office
High-Level Trafficker Pleads Guilty to International Cocaine TraffickingRead the Press Release
NEWS RELEASE SUMMARY – December 12, 2023
SAN DIEGO –Augusto Jean Carlo Castillo-Hernandez of Guatemala pleaded guilty in federal court today, admitting that he and his co-conspirators coordinated the smuggling of multi-ton quantities of cocaine from South America to Guatemala with an ultimate destination of the United States.
Castillo-Hernandez was arrested on August 31, 2021, in Guatemala and extradited to the United States in February 2022 along with two others. He is scheduled to be sentenced on February 23, 2024 at 9 a.m. before Chief U.S. District Judge Dana M. Sabraw.
Court documents described Castillo-Hernandez as an organizer and leader in the conspiracy to distribute cocaine in Guatemala and elsewhere. The conspiracy spanned at least 2017 to July 2020.
The defendants were arrested as part of a multi-year investigation targeting high-level cocaine traffickers operating in northwest Guatemala and which exposed the inner workings of cocaine trafficking in that country. The probe involved multiple countries, multiple law enforcement agencies around the United States, and multiple federal districts.
“This case demonstrates the impact of dedicated partnerships across the United States, reaching into Guatemala to prevent immeasurable amounts of cocaine from arriving on our streets,” said U.S. Attorney Tara McGrath. “While Mr. Castillo-Hernandez is being held accountable today, the bigger message is to the organizers who push this poison north. The long arm of American justice will reach across the globe to protect our communities.”
“This guilty plea of a known drug trafficker is the culmination of years of collaborative efforts between HSI and our partners at the Department of Justice,” said HSI San Diego Special Agent in Charge Chad Plantz, “The joint effort has significantly impacted this international criminal organization’s ability to import dangerous drugs into the United States.”
The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of the defendant.
This case is being prosecuted by Assistant U.S. Attorney Kevin Mokhtari.
DEFENDANT Case Number 20cr2242-DMS
Augusto Jean Carlo Castillo-Hernandez Age: 34 Guatemala
aka “Metal” aka “Joker”
SUMMARY OF CHARGES
Conspiracy to Distribute Cocaine Intended for Unlawful Importation into the United States–
Title 21, U.S.C., Sections 959, 960, 963Maximum penalty: Life in prison and $10 million fine
Criminal Forfeiture – Title 21, U.S.C., Sections 853
AGENCIES
Homeland Security Investigations
Homeland Security Investigations Attaché, Guatemala
U.S. Department of Justice, Office of International AffairsU.S. Department of Justice, Office of Enforcement Operations
Department of Justice, Organized Crime and Drug Enforcement Task Force (OCDETF)Customs and Border Protection Officer Admits Using Unreasonable Force and Agrees to Resign from Law EnforcementRead the Press Release
NEWS RELEASE SUMMARY – December 12, 2023
SAN DIEGO – U.S. Customs and Border Protection Officer Andre Maurice Chevalier pleaded guilty in federal court today to using unreasonable force on an individual who had applied for admission to the United States from Mexico.
Chevalier admitted in his plea agreement that on April 23, 2022, while he was on duty at the San Ysidro Port of Entry, he encountered a woman at a primary inspection booth. Chevalier admitted that he pulled the woman, identified in court documents by the initials Y.F., out of her vehicle and slung her into the booth. Her face struck the booth. She sustained injuries to her face and fell to the ground. Chevalier then picked up Y.F., shoved her against her vehicle and handcuffed her. Chevalier admitted that he acted willfully and intentionally and deprived Y.F. of her right to be free from an unreasonable use of force.
Chevalier agreed to resign and not seek future employment with a federal law enforcement agency.
“Mr. Chevalier’s conduct was inexcusable,” said U.S. Attorney Tara K. McGrath. “His guilty plea and resignation mean he no longer has authority over, or the opportunity to abuse, those entering the country.”
“Federal law enforcement officers are expected to treat the public with courtesy and respect,” said Department of Homeland Security Inspector General Joseph V. Cuffari. “Those who fail to adhere to this standard will be held accountable.”
Chevalier is scheduled to be sentenced on March 8, 2024, at 9 a.m. before U.S. District Judge Anthony J. Battaglia.
This case is being prosecuted by Assistant U.S. Attorneys Seth Askins and Jill Streja.
DEFENDANT Case Number 23cr2510.
Andre Maurice Chevalier Age: 41 Temecula, CA
SUMMARY OF CHARGES
Deprivation of Rights Under Color of Law (misdemeanor) – Title 18, U.S.C., Section 242
Maximum penalty: One year in prison and $100,000 fine
AGENCY
Department of Homeland Security – Office of Inspector General
Foreign Nationals Charged with International Drug TraffickingRead the Press Release
NEWS RELEASE SUMMARY – December 6, 2023
SAN DIEGO – Three indictments were unsealed in the Southern District of California today charging 29 individuals with international drug trafficking offenses.
The unsealing of the indictments comes at the same time that the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) announced sanctions against nine of the defendants for their ties to the Beltran Leyva Organization, a violent, Mexico-based group involved in trafficking drugs to the United States for over two decades. Please see https://home.treasury.gov/news/press-releases/jy1952
“These indictments have neutralized dozens of alleged maritime traffickers and prevented addictive, harmful, and increasingly often deadly drugs from reaching American shores and streets,” said U.S. Attorney Tara McGrath. “Cases like this are critical for disrupting, disabling, and dismantling the sinister and deadly operations of foreign drug trafficking organizations in the United States.”
“Today’s announcement sends a clear message that Homeland Security Investigations and our law enforcement partners will use all available measures to investigate and dismantle transnational criminal organizations (TCO) responsible for the smuggling, transportation, and distribution of narcotics and illicit proceeds – wherever they attempt to operate” said Chad Plantz, special agent in charge for HSI San Diego. “HSI San Diego’s sophisticated and global investigation demonstrates law enforcement’s commitment to disrupting this TCOs criminal activities. We, along with our law enforcement partners, are committed to protecting the United States’ financial infrastructure from bad actors.”
Five related indictments were also unsealed today in the District of Columbia, Central District of California and Northern District of Illinois charging an additional 31 Mexican and foreign nationals with international heroin, methamphetamine, cocaine, fentanyl, and marijuana trafficking, bringing the total to 60 charged. Please see Office of Public Affairs | Sixty Foreign Nationals Charged with International Drug Trafficking | United States Department of Justice
“The eight indictments unsealed today charging 60 defendants are the latest installments in the Justice Department’s relentless pursuit of drug trafficking organizations that smuggle illicit narcotics into the United States,” said Deputy Attorney General Lisa O. Monaco. “Together with our partners — across the U.S. government and around the world — we will use every tool at our disposal and target every link in the supply chain to dismantle the organizations that flood our communities with deadly narcotics.”
In San Diego, one indictment returned in September 2019, 19CR3736-GPC, charges Oscar Manuel Gastelum Iribe, Servando Lopez Lopez, and another individual with conspiring to distribute cocaine knowing it would be imported into the United States and a maritime drug conspiracy.
A second indictment returned in April 2023, 23CR0621-BAS, charges Juan Pablo Bastidas Erenas, Bogar Soto Rodriguez, Juvenal Leon Rodriguez, Mario German Beltran Araujo, Ulises Franco Figueroa, Oscar Aleman Meza, and 17 others with the same offenses.
The third indictment returned in April 2023, 23CR0699-GPC, charges Josue De Jesus Estrada Gutierrez, and two others with conspiring to import cocaine, methamphetamine, and fentanyl.
OFAC announced sanctions against Iribe, Lopez, Erenas, Soto Rodriguez (under the name Ricardo Estevez Colmenares), Leon Rodriguez, Araujo, Figueroa, Meza, and Gutierrez (under the name Jose De Jesus Estrada Gutierrez) on the same date the indictments were unsealed.
One defendant, Oscar Manuel Gastelum Iribe, aka Salgado and Musico, 49, is indicted in the Southern District of California , the District of Columbia and the Northern District of Illinois. As alleged in court documents, Gastelum Iribe coordinated deliveries of multi-kilogram quantities of cocaine and heroin into the United States and deliveries of millions of dollars of cash narcotics proceeds from customers in the United States for the Beltran Leyva Organization.
This case is supported by the Organized Crime Drug Enforcement Task Forces (OCDETF).
This case is being prosecuted by Assistant U.S. Attorney Joshua C. Mellor and Special Assistant U.S. Attorney Allison B. Murray. The Justice Department’s Office of International Affairs provided significant assistance.
DEFENDANTS Case Number 19cr3736-GPC
Oscar Manuel Gastelum Iribe *All Defendants are from Mexico
aka “El Musico,”
aka “Salgado,”
Servando Lopez Lopez
aka “El Huevo,”
Jose Fernando Zambada Ley
aka “El Chino”
Case Number 23cr-0621-GPC_
Juan Pablo Bastidas Erenas,
aka “Payo,”
Ugan Lopez Beltran,
aka “Kiwuas,”
aka “Prada,”
Bogar Soto Rodriguez,
aka “Loco,”
aka “Tio,”
Juvenal Leon Rodriguez,
aka “Gallo,”
Arnoldo Villa Sanchez,
aka “Arnol,”
Mario German Beltran Araujo,
aka “El Ninon,”
Jose Roberto
Navarrete Mendoza,
aka “Mono,”
Cesar Homero
Magallanes Gonzalez,
aka “Chayo,”
Ulises Franco Figueroa,
aka “Charco,”
Elvis Villatoro De La Cruz,
aka “Yogurt,”
Jesus Alonso Zamora Roman,
aka “Sobrino,”
Luis Antonio Espeleta Esparza,
aka “Negro Trailero,”
Jose Misael Macedo Alvarez,
Jose Francisco Osuna Osorio,
aka “Gabino,”
Eduardo Adalberto Sustaita Castaneda,
aka “Susto,”
Carlos Antonio
Pacheco Castaneda,
Jesus Sergio
Santiago Gonzalez,
aka “Zucaritas,”
Oscar Aleman Meza,
Lorenzo Mendez Sanchez,
aka “Lencho,”
Juan Manuel Hernandez Soto,
aka “Piki,”
aka “Guero,”
Pedro Rodriguez Moreno,
Francisco Ramon
Pelaez Luengas,
aka “Wawis,”
Eduardo Gabriel Ibarra Mone
Case Number 23cr-0699-GPC_
Josue De Jesus
Estrada Gutierrez,
aka “Barbas,”
aka “Barbon,”
Brayan Carrizoza Arredondo,
Alejo Lopez Perez,
SUMMARY OF CHARGES
International Conspiracy to Distribute Cocaine – Title 21, U.S.C., Sections 959, 960 and 963
Conspiracy to Possess with Intent to Distribute Cocaine on Board a Vessel - Title 46, U.S.C., Secs. 70503 and 70506(b)
Conspiracy to Import Controlled Substances - Title 21, U.S.C., Sections 952, 960 and 963
Maximum penalty: Life in prison with a 10-year mandatory minimum; $10 million fine
AGENCY
Homeland Security Investigations
Federal Bureau of Investigation
Drug Enforcement Administration
Coast Guard Investigative Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
San Diego Man Admits Bank, Tax FraudRead the Press Release
NEWS RELEASE SUMMARY – December 4, 2023
SAN DIEGO – Alvin Pates of San Diego pleaded guilty in federal court today to bank and tax fraud charges, admitting that he participated in a scheme to deceive banks by using straw borrowers and bogus financial information to obtain loans.
According to his plea agreement, beginning as early as July 2014 and continuing through at least April 2020, Pates admitted that he used the names, social security numbers, and credit of the straw borrowers to obtain loans and lines of credit that primarily benefited Pates. Pates prepared, or directed others to prepare, the fraudulent loan and credit card applications. The applications included information about the borrowers’ income and employment that Pates knew to be false and were supported by false paystubs, W2s, and bank statements procured by Pates.
In exchange for the use of the straw borrowers’ personal identifying information and credit, Pates typically paid a 10 percent kickback from the loan proceeds to the straw borrower, and falsely promised to make all the payments on the loans. On at least one occasion, Pates communicated by telephone directly with a financial institution, pretending to be the straw borrower, in order to pass security questions and obtain approval of a loan.
Pates acknowledged in his plea agreement that he funneled the majority of the loan proceeds through the bank accounts of one of his shell companies to use for his personal benefit. For example, Pates admitted to using the funds for numerous personal transactions, cash withdrawals, personal living expenses for himself and his family, and to make payments to other credit unions. Pates admitted that the value of the fraudulent loans charged in the indictment is $87,000, and that he will be required to pay restitution of at least $40,500.
In addition to the bank fraud, Pates also admitted to aiding and assisting in the preparation of false tax returns for two taxpayers for the calendar year 2015. The tax return for one of the taxpayers falsely stated that the individual received “Other Income” in the amount of $538,462 and had paid federal income taxes of $543,643, thus entitling him to a refund of $376,260. Pates supplied false Forms 1099 to the taxpayer to support the return and accompanied the taxpayer to the IRS to submit the false return. The Internal Revenue Service (IRS) issued a refund check to the taxpayer for $376,260, which was ultimately returned to the IRS.
Pates is scheduled to be sentenced on March 1, 2024, at 9 a.m. before U.S. District Judge Cathy Ann Bencivengo.
This case is being prosecuted by Assistant U.S. Attorneys Melanie K. Pierson and Loren G. Rene.
DEFENDANT Case Number 20CR2204-CAB
Alvin Pates a.k.a. Al Noble Age: 54 San Diego, CA
SUMMARY OF CHARGES
Count 8
Bank Fraud – Title 18, U.S.C., Sections 1344(1) and 2
Maximum penalty: Thirty years in prison, $1 million fine, forfeiture and restitution
Count 9
Aiding and Advising Preparation of a False Tax Return—Title 26, U.S.C., Section 7206(2)
Maximum penalty: Three years in prison, $250,000 fine, 3 years’ supervised release, forfeiture and restitution
AGENCIES
U.S. Secret Service
IRS Criminal Investigation
California Businessman Pleads Guilty to COVID-Relief FraudRead the Press Release
NEWS RELEASE SUMMARY – November 30, 2023
SAN DIEGO – Sean Winston, the CEO of Atlas Capital Management, LLC, pleaded guilty in federal court today, admitting that he fraudulently obtained $875,900 from COVID-19 pandemic-era loan programs.
According to his plea agreement, Winston held Atlas Capital Management out to the public as an entity that financed business projects, but in fact performed no business and was a shell corporation. Winston admitted that he submitted five loan and loan-forgiveness applications containing false statements to trick lenders into giving his company relief funds. Winston submitted fabricated bank account records, false payroll data, and a fake IRS Form 1120-S to create the illusion that Atlas Capital Management qualified for various pandemic era loans.
Winston admitted that he used the borrowed funds to pay his personal expenses and purchase luxury vehicles, such as a 2021 Lamborghini Urus, 2018 Rolls Royce Dawn, 2020 Chevrolet Corvette, and 2021 Cadillac Escalade. On September 28, 2023, federal law enforcement agents seized the vehicles and money in two bank accounts. Winston agreed to forfeit the cars and money to the United States.
The defendant applied for loans through the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which was enacted on March 27, 2020, to provide more than $2 trillion of economic relief to workers, families, small businesses, industry sectors and other levels of government that were hit hard by the public health crisis created by COVID-19. The CARES Act authorized the Small Business Administration (“SBA”) to temporarily guarantee loans under a new loan program titled the Paycheck Protection Program (“PPP”).
Under the PPP, financial institutions made loans to qualified borrowers, and the SBA backed the loans. Borrowers agreed to use the PPP loans to cover payroll costs and certain eligible nonpayroll costs. In some cases, the borrower could apply for forgiveness of the loan. If approved for forgiveness, the SBA paid the loan for the borrower. One of Winston’s loans was forgiven.
The CARES Act also authorized the SBA to provide Economic Injury Disaster Loans (“EIDL”). Winston also submitted a false EIDL application. Borrowers agreed to use EIDL funds solely as working capital to alleviate economic injury caused by the disaster. Working capital expenses included payroll expenses, sick leave, production costs, and ordinary business obligations, like debts, rent, and mortgage payments.
Winston is scheduled to be sentenced by U.S. District Judge William Q. Hayes on March 4, 2024.
This case is being prosecuted by Assistant U.S. Attorneys E. Christopher Beeler and Carl F. Brooker, IV.
DEFENDANT Case Number 23-CR-2441-WQH
Sean K. Winston Age: 44 Chino Hills, CA
SUMMARY OF CHARGES
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Thirty years in prison and $1 million fine
AGENCY
Homeland Security Investigations
Married Couple Sentenced for Laundering $1.4 Million in Proceeds from Jewelry Thefts and Unemployment Fraud During PandemicRead the Press Release
NEWS RELEASE SUMMARY – November 20, 2023
SAN DIEGO – Eduard Ghiocel and his wife, Floarea Ghiocel, were sentenced in federal court today to 36 months and 30 months, respectively, for laundering $1.4 million in proceeds from dozens of grand thefts, robberies and swindles targeting mostly elderly victims in San Diego County.
According to their plea agreements, the Ghiocels, along with co-conspirators Gabriel Ghiocel, Marius Ghiocel, Larisa Ghiocel, and Argentina Alexandru, conducted a series of 17 grand thefts and robberies of jewelry in elderly communities in San Diego. They then pawned the stolen jewelry and watches for cash in jewelry stores in Los Angeles.
In addition, Eduard and Floarea Ghiocel admitted submitting fraudulent unemployment claims to the California Employment Development Department (EDD) to obtain approximately $32,250 in California unemployment insurance benefits intended to help workers affected by the COVID-19 pandemic.
Eduard and Floarea Ghiocel admitted wiring proceeds from the jewelry thefts and the unemployment insurance fraud to Romania, as well as using the proceeds to purchase gold bars, gold coins, and high-end luxury vehicles from locations in Southern California and shipping these items to Romania. In total the Ghiocels sent almost $1.4 million to Romania, knowing the money was proceeds of theft, robbery, and fraud, the plea agreement said.
Eduard and Floarea Ghiocel agreed to forfeit proceeds of the crime including two Lamborghini Urus, a 2020 Ferrari Portofino, and a BMW X4 all seized by authorities in Romania. The forfeitures will be used pay restitution to victims of the crimes.
The co-conspirators remain at large.
This case is being prosecuted by Assistant U.S. Attorney Jessica Adeline Schulberg with assistance from the Department of Justice’s Office of International Affairs, FBI's Legal Attaché in Bucharest, and Romanian authorities including the Directorate for Combating Organized Crime (DCCO) Service for Countering of Organized Criminal Groups, Brigade for Combating Organized Crime (BCCO) – Pitești, County Service for Countering Organized Crime – Teleorman, Romanian Gendarmerie Battalion, Romanian Ministry of Justice, and Romanian Criminal Investigative Directorate - Fugitive Unit.
DEFENDANT Case Number 23CR0386-LAB
Eduard Ghiocel (1) Age: 48 Romania
aka Eduard Alexandru, aka “Filica”
Floarea Ghiocel (2) Age: 49 Romania
aka Floarea Alexandru
SUMMARY OF CHARGES
Title 18 U.S.C. § 1956(h) and Title 18 U.S.C. § 1956(a)(2)(A) — Conspiracy to Transport Funds to Promote Unlawful Activity
Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater
AGENCY
Federal Bureau of Investigation
San Diego Police Department Economic Crimes Unit
IRS Criminal Investigation
California Employment Development Department Investigative Division
Department of Labor Office of Inspector General
U.S. Department of Homeland Security
Foreign National Sentenced to 40 Months Custody for $5 Million Unemployment Fraud SchemeRead the Press Release
NEWS RELEASE SUMMARY – November 20, 2023
SAN DIEGO – Constantin Bobi Sandu, who admitted that he masterminded a scheme to steal more than $5 million in California unemployment benefits intended to help workers affected by the pandemic, was sentenced in federal court today to 40 months in prison.
According to his plea agreement, Sandu conspired with over 200 other individuals across California and in Romania to fraudulently obtain millions of dollars by fabricating documents, creating fictitious accounts and businesses, and filing bogus claims with California’s Economic Development Department, which administers the state’s unemployment benefits. Among other things, Sandu wired $16,000 in fraud proceeds to Romania to renovate his house.
Sandu also was ordered to forfeit $214,950 that he personally received from the offenses.
“This devious scheme diverted millions of dollars from those who truly needed it during the pandemic,” said U.S. Attorney Tara McGrath. “The public health emergency may be over, but we are still tracking, charging, and convicting the people who exploited it.”
“The FBI remains fully committed to ensuring people who intentionally stole government funds during the COVID-19 pandemic are brought to justice,” said FBI San Diego Special Agent in Charge Stacey Moy. “We continually collaborate with our law enforcement partners to thoroughly investigate all those responsible for stealing from the United States Government and its people during such a critical time in our lives, taking away valuable resources and services from those truly in need.”
“Mr. Sandu and his criminal organization committed financial crimes that hurt people here in California and stole funds intended for those in need,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “IRS:CI is committed to partnerships with law enforcement organizations around the world, and we will follow the money to find the guilty and bring them to justice.”
This case was prosecuted by Assistant U.S. Attorney Jessica Adeline Schulberg.
DEFENDANT Case Number 23CR0386-LAB
Constantin Bobi Sandu, Age: 34 Romanian national
aka Constantin Sandu,
aka Bobi Sandu,
aka Ionut Mihai
SUMMARY OF CHARGES
Title 18, U.S.C. § 1349 and 1343 - Conspiracy to Commit Wire Fraud
Maximum penalty: Thirty years in prison, a fine of $1 million or both;
Title 18 U.S.C. § 1956(a)(2)(A) — Laundering Monetary Instruments
Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater;
Title 18 U.S.C. §§ 981(a)(1)(C) and 982(a)(1), and Title 28, U.S.C. § 2461(c) - Criminal Forfeitures
AGENCY
Federal Bureau of Investigation
San Diego Police Department Economic Crimes Unit
IRS Criminal Investigation
California Employment Development Department Investigative Division
Department of Labor Office of Investigator General
U.S. Department of Homeland Security
Dual U.S./Mexican Citizen Extradited to the United States from Spain to Face Charges Related to Most Potent Fentanyl SeizureRead the Press Release
NEWS RELEASE SUMMARY – November 21, 2023
SAN DIEGO –Aaron Leib Kobisher, the alleged leader of a drug trafficking organization based in San Diego and Tijuana, made his first appearance in federal court today following his extradition from Spain to face fentanyl, methamphetamine, and cocaine trafficking charges.
According to publicly filed court documents, the charges relate to multiple seizures, including a June 2021 interception of approximately two kilograms of powdered fentanyl that was linked to Kobisher and his drug trafficking organization. After the fentanyl was tested by the DEA Southwest Laboratory, investigators discovered that it was the most concentrated powdered fentanyl that had been tested to date by the laboratory.
At today’s hearing, the United States moved for detention, arguing that Kobisher was a substantial flight risk. U.S. Magistrate Judge Steven B. Chu scheduled a detention hearing for November 24, 2023, at 10 a.m.
Kobisher is the lead defendant charged in a six-defendant indictment stemming from a long-term investigation. Four others charged in the same indictment were arrested earlier this year. One defendant remains a fugitive.
In court documents, Kobisher was described as an organizer and leader of the drug trafficking organization who coordinated the smuggling of fentanyl, methamphetamine and cocaine from Mexico to San Diego for distribution in the U.S.
Prosecutors alleged that Kobisher fled to Mexico in November 2022, after several seizures linked to Kobisher and his drug trafficking organization.
Kobisher was arrested in Spain on June 21, 2023. He had boarded a flight in Madrid that was headed to Mexico City, Mexico. After the flight left the gate, Spanish police stopped the aircraft and arrested Kobisher based on an Interpol Diffusion Notice from the United States government. On November 20, 2023, Kobisher was extradited to the United States.
“Fentanyl is deadly in all forms, but one of the seizures in this case packed an extraordinary punch,” said U.S. Attorney Tara McGrath. “Getting fentanyl out of the hands of drug traffickers – especially the most potent versions - no doubt saves many lives. The diligence of law enforcement means our neighborhoods are safer.”
“Drug trafficking is a violent crime, that impacts the safety and security of our communities,” said DEA Special Agent in Charge Shelly Howe. “The DEA and its partners will continue to work together to disrupt drug trafficking organizations and bring drug traffickers to justice. These organizations must be held accountable for the harm they cause in our communities.”
“Fentanyl continues to be the most significant drug-related concern for Homeland Security Investigations and our partners due to its widespread availability, highly addictive features, and deadly effects,” said Chad Plantz, Special Agent in Charge for Homeland Security Investigations San Diego. “The success of this investigation is the result of law enforcement agencies working together to dismantle drug trafficking organizations and holding those accountable for their actions- no matter where they hide.”
The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Kobisher.
This case is being prosecuted by Assistant U.S. Attorney Kevin Mokhtari.
DEFENDANT Case Number 23cr0916-JES-1
Aaron Lei Kobisher Age: 34 Mexico
aka “El Kobi”
SUMMARY OF CHARGES
Conspiracy to Distribute Methamphetamine, Fentanyl and Cocaine –
Title 21, U.S.C., Sections 841(a)(1), 846Maximum penalty: Life in prison and $10 million fine
Criminal Forfeiture – Title 21, U.S.C., Sections 853
AGENCIES
Drug Enforcement Administration
Homeland Security Investigations
United States Marshals ServiceDEA Attaché Madrid, Spain
U.S. Department of Justice, Office of International AffairsU.S. Department of Justice, Office of Enforcement Operations
Department of Justice, Organized Crime and Drug Enforcement Task Force (OCDETF)U.S. Customs and Border Protection
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
San Diego Businessman Pleads Guilty in Multi-Million Dollar Covid-Related FraudRead the Press Release
NEWS RELEASE SUMMARY – November 16, 2023
SAN DIEGO – Thomas Zolezzi of San Diego pleaded guilty in federal court today, admitting that he committed fraud to obtain almost $3 million intended to help those affected by the COVID-19 pandemic.
In his plea agreement, Zolezzi admitted he submitted five loan applications containing false statements to trick lenders into providing the relief funds. He used the borrowed funds to pay his personal expenses. As part of his guilty plea, Zolezzi agreed to pay restitution of $700,884.75 to the Small Business Administration (“SBA”) and $2,238,910.24 to Capital Plus Financial.
The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted on March 27, 2020, to provide over $2 trillion of economic relief to workers, families, small businesses, industry sectors and other levels of government that were hit hard by the public health crisis created by COVID-19. The CARES Act authorized the SBA to temporarily guarantee loans under a new loan program titled the Paycheck Protection Program (“PPP”).
Under the PPP, financial institutions made loans to qualified borrowers, and the SBA backed the loans. Borrowers agreed to use the PPP loans to cover payroll costs and certain eligible nonpayroll costs. In some cases, the borrower could apply for forgiveness of the loan. If approved for forgiveness, the SBA paid the loan for the borrower.
The CARES Act also authorized the SBA to provide Economic Injury Disaster Loans (“EIDL”). Borrowers agreed to use EIDL funds solely as working capital to alleviate economic injury caused by the disaster. Working capital expenses included payroll expenses, sick leave, production costs, and ordinary business obligations, like debts, rent, and mortgage payments.
According to court records, Zolezzi applied for and received three PPP loans and two EIDLs. Zolezzi’s loan applications, which started in May 2020, falsely overstated the number of his employees, his payroll amount, and his annual revenue to fraudulently obtain $2,939,794.99 in loans.
Sentencing is scheduled for February 5, 2024, at 9 a.m. before U.S. District Judge Anthony J. Battaglia.
This case is being prosecuted by Assistant U.S. Attorney Christopher Alexander.
DEFENDANT Case Number 23-cr-02352 -AJB
Thomas Zolezzi Age: 61 San Diego, CA
SUMMARY OF CHARGES
Wire Fraud, a felony, in violation of Title 18, United States Code, Section 1343
Maximum Penalty: Twenty years in prison and a fine of $250,000
AGENCIES
Homeland Security Investigations, Immigration and Customs Enforcement
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (“NCDF”) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Fourteen Defendants Indicted in $5 Million California State Unemployment Fraud SchemeRead the Press Release
NEWS RELEASE SUMMARY – November 16, 2023
SAN DIEGO – An indictment partially unsealed today charges 14 defendants with fraud and money laundering offenses for a scheme centered around fraudulent unemployment applications submitted to the California Employment Development Department during the pandemic. The indictment alleges the fraud netted the defendants almost $5.2 million in funds from the state of California.
According to the indictment, David Constantin and Constantin Bobi Sandu, who was arrested and charged separately in March 2023, helped hundreds of applicants apply for EDD benefits using fraudulent documents. Constantin and Sandu recruited potential applicants through Facebook and met applicants at parks throughout Southern California to complete the application process. Applicants paid Constantin or Sandu a partial fee up front for assisting with fraudulent applications and another fee after applicants received EDD payments.
The indictment alleges that from July 2020 to August 2022, Constantin transmitted more than $128,000 in fraud proceeds to associates in Romania. Another defendant who fraudulently obtained EDD benefits with Constantin’s help, Eduard Buse, transmitted almost $129,000 to Romania in the same period. Buse also purchased a 2020 BMW X6 with over $105,000 in cash fraud proceeds in December 2022 and shipped the vehicle to Romania. Several other defendants also transmitted fraud proceeds to accounts in Romania.
David Constantin was arrested in Romania at the request of the United States on November 13th by Romanian authorities who also served search warrants and seized, among other things, the BMW with California license plates. The Department of Justice will seek Constantin’s extradition to the United States. Buse and defendants Leonard Miclescu, Constantin Iosif Constantin and Florentina Sima were arrested in California and Texas. Nine other defendants remain at large.
This case is being prosecuted by Assistant U.S. Attorneys Jessica Adeline Schulberg and Valerie Chu with assistance from the Department of Justice’s Office of International Affairs, FBI's Legal Attaché in Bucharest, and Romanian authorities including the Directorate for Combating Organized Crime (DCCO) Service for Countering of Organized Criminal Groups, Brigade for Combating Organized Crime (BCCO) – Pitești, County Service for Countering Organized Crime – Teleorman, Romanian Gendarmerie Battalion, Romanian Ministry of Justice, and Romanian Criminal Investigative Directorate - Fugitive Unit.
DEFENDANTS Case Number 23CR2090-LAB
David Constantin Age: 27 Arges County, Romania
aka Vlad Alexandru
Eduard Buse Age: 30 Transient, Romanian
Leonard Miclescu Age: 49 Transient, Romanian
Constantin Iosif Constantin Age: 30 Transient, Romanian
Florentina Sima Age: 29 Transient, Romanian
*Additional defendants are not in custody and their names are redacted
SUMMARY OF CHARGES
Title 18, U.S.C. § 1349 — Conspiracy to Commit Wire Fraud
Title 18, U.S.C. § 1343 — Wire Fraud
Maximum penalty: Thirty years in prison, $1 million fine
Title 18 U.S.C. § 1956(h) — Conspiracy to Launder Monetary Instruments
Title 18 U.S.C. § 1956(a)(2)(A) — Laundering of Monetary Instruments
Title 18 U.S.C. § 1956(a)(2)(B)(i) — Laundering of Monetary Instruments
Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater
AGENCY
Federal Bureau of Investigation
San Diego Police Department Economic Crimes Unit
IRS Criminal Investigation
California Employment Development Department Investigative Division
Department of Labor Office of Inspector General
U.S. Department of Homeland Security
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Former Navy Civilian Employee and Defense Contractor Indicted in Bribery SchemeRead the Press Release
NEWS RELEASE SUMMARY – November 14, 2023
SAN DIEGO – A federal grand jury has indicted a former civilian employee of the Naval Information Warfare Center in San Diego and the owner of a Virginia-based defense contractor for a bribery scheme.
According to the indictment, Phillip Flores, owner of Intellipeak Solutions, bribed James Soriano, the former employee, with free dinners at San Diego restaurants including De Medici Cucina, the University Club and Bluewater Boathouse Grill and Ruth’s Chris in Virginia as well as tickets to the 2018 World Series and the 2019 Super Bowl.
In return, Soriano allowed Flores to draft procurement documents for various contracts, including contracts for which Flores and Intellipeak ostensibly were in competition with others. Soriano also steered millions of dollars in contracts to Intellipeak that Flores subcontracted to others, including contractors ineligible to receive the contracts.
To conceal their activity, Soriano falsified government paperwork and Flores falsely affirmed that Intellipeak had completed 51 percent of the work on awarded contracts when the company had not. On October 29, 2019, in a recorded call, Flores coached Soriano to be “very careful” about how he answered questions from federal agents and to falsely say contractors drafting government documents was “market research.”
“Our nation’s military depends upon the honesty of its civilian workforce and the contractors who provide invaluable services to the men and women who help defend our country,” said U.S. Attorney Tara K. McGrath. “Those who choose greed and corruption breach that sacred trust.”
“The announced indictment is a critical first step in holding all three parties accountable for their alleged criminal efforts to enrich themselves financially by subverting the integrity of the government’s acquisition process through the improper awarding or promise of awarding lucrative contracts,” said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS remains committed to working jointly with the United States Attorney’s Office and our law enforcement partners to investigate and deter public corruption within the Department of Defense.”
“Bribery and procurement fraud within the Department of the Navy threatens warfighter safety and perpetuates unfair contracting practices that negatively affect honest businesses,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS and our partners remain committed to exposing those who abuse the DON procurement process for personal gain.”
“The indictment alleges that Mr. Soriano and Mr. Flores put national security at risk by actively trying to skirt the government contract process that exists to ensure our warfighters are equipped to fight and win in a complex environment,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “CI is committed to working with our fellow law enforcement partners to root out corrupt activities by following the money to help protect our heroes in uniform.”
“Using a position of public trust as a means to fraudulently grant access to federal programs for personal gain will not be tolerated,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Our office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
DEFENDANTS Case Number 23cr2282-TWR
James Soriano Age: 63 Las Vegas, NV
Philip Flores Age: 52 Nashville, TN
Intellipeak Solutions, Inc. Virginia
RELATED CASE Case Number 23cr2192-TWR
Dawnell Parker Age: 54 Athens, AL
SUMMARY OF CHARGES
Conspiracy to Commit Bribery - Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison; $250,000 fine
Bribery – Title 18, U.S.C., Section 201
Maximum penalty: Fifteen years in prison; $250,000 fine for an individual or $500,000 for an organization, or three times the monetary equivalent of the thing of value, whichever is greater.
AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Small Business Administration – Office of Inspector General
Internal Revenue Service Criminal Investigation
Department of Health and Human Services – Office of Inspector General
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098.
El Cajon Woman Admits to Coordinating the Transportation of More than 75 Undocumented Immigrants and Collecting $1 Million in PaymentsRead the Press Release
NEWS RELEASE SUMMARY – November 14, 2023
SAN DIEGO – Blanca Estella Gomez of El Cajon pleaded guilty in federal court today, admitting that she managed and directed drivers who transported undocumented immigrants within the United States.
In her plea agreement, Gomez said she coordinated with individuals in Mexico who smuggled immigrants across the border. Gomez directed her drivers to pick up the immigrants in the United States, told the drivers where to take the immigrants, and told them how much money to collect.
According to her plea agreement, Gomez admitted that one driver working for her transported more than 75 immigrants from October 2021 to April 2022. Gomez said that the same driver collected and delivered to her more than $1 million in payments for alien smuggling.
“The coordinated effort to bring this defendant to justice underscores the power of our law enforcement partnerships along the southern border to dismantle criminal smuggling operations at every level,” said U.S. Attorney Tara McGrath.
“Human smuggling is a serious and dangerous offense,” said Sidney K. Aki, Director of Field Operations for Customs and Border Protection’s San Diego Field Office. “This effort was an outstanding demonstration of law enforcement partnership and commitment to dismantling criminal organizations that exploit vulnerable migrants for profit.”
The defendant is scheduled to be sentenced on February 2, 2024, at 9 a.m. before U.S. District Judge Ruth Bermudez Montenegro.
This case is being prosecuted by Assistant U.S. Attorneys Daniel D. Shin and Michael A. Deshong of the Southern District of California.
DEFENDANTS Case Number 23cr1120-RBM
Blanca Estella Gomez Age: 47 El Cajon, California
SUMMARY OF CHARGES
Conspiracy to Transport Aliens – Title 8, United States Code, Section 1324(a)(1)(A)(ii) and (v)(I)
Maximum penalty: Ten years in prison and $250,000 fine
AGENCY
Homeland Security Investigations
United States Customs and Border Protection
Tijuana Woman Sentenced to 12 Months for Stealing Dead Mother’s Social Security Benefits for 13 YearsRead the Press Release
NEWS RELEASE SUMMARY – November 13, 2023
SAN DIEGO – Kimberly Kay Brandt, a 51-year-old U.S. citizen living in Tijuana, was sentenced in federal court today to 12 months and one day in prison for concealing her mother’s death from the Social Security Administration for 13 years to steal more than $268,000 in retirement benefits.
Brandt pleaded guilty to Social Security fraud in August 2023. According to her plea agreement, Brandt’s mother, identified in court records as H.B., moved from California to her daughter’s home in Tijuana when her health declined. She died in Mexico in June 2010. H.B. had been receiving retirement benefits from the Social Security Administration (SSA) via direct deposit into her bank account.
After H.B. died, Brandt did not inform the SSA and continued to use H.B.’s bank card to withdraw the benefits intended for H.B. Brandt admitted that she impersonated H.B. in a call to H.B.’s bank, purportedly to update H.B.’s address and request a new bank card in H.B.’s name. Brandt enlisted a third party to bring the new bank card to her in Mexico. After the SSA discovered H.B.’s death and stopped paying benefits, Brandt impersonated H.B. again in a call to the bank to inquire about the missing payment. Brandt was arrested on June 27, 2023, as she attempted to cross into the U.S. from Mexico, three weeks after the SSA benefits stopped.
Brandt was ordered to pay $268,143 in restitution to the Social Security Administration.
This case is being prosecuted by Special Assistant U.S. Attorney Lisa J. Sanniti.
DEFENDANTS Case Number 23cr1484-BAS
Kimberly Kay Brandt Age: 51 Tijuana, Mexico
SUMMARY OF CHARGES
Social Security Fraud – Title 42, U.S.C., Section 408(a)(4)
Maximum penalty: Five years in prison and $250,000 fine
AGENCY
Social Security Administration Office of the Inspector General
Second “United Against Hate Week” Begins TodayRead the Press Release
SAN DIEGO – Beginning today, the U.S. Attorney’s Office and the San Diego Anti-Hate Coalition launch their second “United Against Hate Week,” joining cities throughout California for a series of events that promote tolerance and respect.
United Against Hate Week began in the Bay Area as a call for local civic action to stop the hate and implicit biases that are a dangerous threat to the safety and civility of our neighborhoods. The campaign has now spread to more than 200 communities.
“Combating hate crimes requires a committed, coordinated, and united effort,” said U.S. Attorney Tara K. McGrath. “No one should live in fear of hate-filled violence. The Justice Department is committed to building on our partnerships with all of you to effectively prosecute illegal acts of hate.”
The full calendar of events for United Against Hate Week can be accessed at https://www.justice.gov/usao-sdca/united-against-hate.
McGrath will be available for brief interviews about United Against Hate Week. If interested, please contact Kelly Thornton at Kelly.Thornton@usdoj.gov.
“As we launch this collaborative effort, there are many ways to participate,” said McGrath. “Every person who joins in, increases the impact of this incredibly important campaign to end intolerance. We can all make a difference by learning more about the campaign, attending an event, or following on social media.”
For more information, please contact Assistant U. S. Attorneys Cindy Cipriani (619-546-9608) and Alicia Williams (619-546-8917) and Law Enforcement/Outreach Coordinator Shastity Urias (619-546-9399). Please follow us on social media @sdantihate to get updates about the upcoming events and resources.
Members of the public are encouraged to report hate incidents and hate crimes to the Federal Bureau of Investigation at 1-800-CALL-FBI or online at https://tips.fbi.gov/. Please call 911 if you need emergency assistance.
Mexican Mafia Associate Sentenced to 10 Years in PrisonRead the Press Release
NEWS RELEASE SUMMARY – November 13, 2023
SAN DIEGO – Juan Castro of San Diego was sentenced today in federal court to 10 years in prison and 10 years of supervised release for selling 109 grams of methamphetamine to a cooperating individual.
A government memorandum submitted for Castro’s sentencing described him as a high-ranking member of the San Ysidro (or “Sidro”) street gang and an associate of the Mexican Mafia. Castro oversaw day-to-day operations for Sidro which included collecting payments in exchange for allowing others to commit crimes in the San Ysidro area. The payments, or taxes, were then distributed to high-ranking Mexican Mafia members. In sentencing Castro, U.S. District Judge Larry Alan Burns called him a “hand puppet for the Mexican Mafia.”
Castro was apprehended after a long-term investigation by the FBI’s Violent Crimes Task Force and Gang Group.
DEFENDANT Case Number 23-cr-00371-LAB
Juan Castro Age: 38 San Diego, CA
SUMMARY OF CHARGES
Distribution of Methamphetamine – Title 21, U.S.C., Section 841(a)(1)
Maximum penalty: Forty years in prison, with a mandatory minimum of five years, and $5 million fine
AGENCIES
Federal Bureau of Investigation – Violent Crimes Task Force – Gang Group (VCTF-GG), which currently includes investigators from the following agencies:
- Federal Bureau of Investigation
- San Diego Police Department
- Homeland Security Investigations
- Bureau of Alcohol, Tobacco, Firearms and Explosives
- California Department of Corrections
- San Diego County Sheriff’s Department
- Chula Vista Police Department
- National City Police Department
Although not currently part of VCTF-GG, during the investigation of this case, VCTF-GG also included investigators from the following:
- Bureau of Prisons
- San Diego District Attorney’s Office of Investigations
CEO of San Diego Financial Firm Charged in Loan ScamRead the Press Release
NEWS RELEASE SUMMARY – November 13, 2023
SAN DIEGO – The CEO of San Diego-based Ethos Asset Management, Inc., which offers financing to international businesses, was arrested in New Jersey Sunday night in connection with fraud charges in the Southern District of California.
Carlos Manuel da Silva Santos of Portugal was taken into custody in Newark, New Jersey as he arrived in the United States from abroad. Santos made his initial appearance there today after the United States unsealed a complaint charging him with wire fraud conspiracy related to a loan scam. Santos is accused of orchestrating the fraud through his company, San Diego-based Ethos Asset Management, Inc.
According to the complaint, Santos required prospective borrowers to provide an upfront fee in an amount equal to a certain percentage of the loan amount. However, upon receipt of the upfront fee, Santos and Ethos did not disburse the loan as agreed upon by the parties. Santos used the upfront fees to repay other prospective borrowers, issue commissions to his co-conspirators, and to pay for personal expenses.
The complaint alleges that to lure prospective borrowers and to obtain lines of credit from financial institutions in furtherance of the scheme, Santos manipulated Ethos’ balance sheets and real financial account statements to artificially inflate Ethos’ net worth. For example, the complaint alleges that Santos induced at least one victim to pay an upfront fee in excess of $8 million by representing Ethos had $359,088,190.22 in a specific brokerage account, but records established that Ethos had no such account. Similarly, the complaint contends Santos altered Ethos bank account statements to inflate bank account balances to prospective borrowers, sometimes by more than $100 million than what was deposited in the account.
This case is being prosecuted by Assistant U.S. Attorney E. Christopher Beeler and Carl F. Brooker, IV.
DEFENDANTS Case Number 23-MJ-4145
Carlos Manuel da Silva Santos Age: 29 Portugal
SUMMARY OF CHARGES
Wire Fraud Conspiracy – Title 18, U.S.C., Section 1349
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCY
Homeland Security Investigations
*The charges and allegations contained in a complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Migrant Smuggler Admits to Sexually Assaulting Juvenile During Travel to the United StatesRead the Press Release
NEWS RELEASE SUMMARY – November 2, 2023
SAN DIEGO – Cecilio Yonatan Jimenez-Bautista of Mexico pleaded guilty in federal court today to alien smuggling charges and admitted that, in carrying out those crimes, he sexually assaulted a 17-year-old female multiple times while traveling from Mexico to the United States. The minor was not accompanied by relatives or a guardian.
According to his plea agreement, on multiple occasions from March 15, 2022, to June 29, 2022, Jimenez-Bautista led at least 25 undocumented aliens from Mexico into the United States. The smuggling fees ranged from at least $5,000 to $9,500 per migrant.
In particular, from June 14, 2022, to June 16, 2022, Jimenez-Bautista and another individual led a group of 10 undocumented migrants from Tijuana, Baja California, Mexico to an area near Otay Lakes Road in Chula Vista, California. The group included the minor. Jimenez-Bautista admitted that on June 14 and 15, 2022, he isolated the juvenile from the group and touched her breasts and genitalia without permission. On June 16, 2022, he sexually assaulted her, causing serious bodily injury.
“The defendant had no regard for this child’s humanity,” said U.S. Attorney Tara McGrath. “The brutal victimization of a 17-year-old minor is yet another example of the cruelty of smugglers who care only about profit.”
“This guilty plea is a reminder of what the combined effort of law enforcement can accomplish,” said Chad Plantz, special agent in charge of HSI San Diego. “HSI special agents remain vigilant to investigate violent human smugglers capable of such revolting actions in the course of circumventing our country’s immigration laws.”
“We continue to work with our local, state, and federal partners to deliver consequences to those nefarious characters who wish to inflict harm in our communities,” said San Diego Sector Chief Patrol Agent Patricia McGurk-Daniel. “We have zero tolerance for these types of actions, and we will do everything in our power to bring those responsible to justice.”
The defendant is scheduled to be sentenced on January 29, 2024.
This case is being prosecuted by Assistant U.S. Attorneys Katherine McGrath and Edward Chang of the Southern District of California, and Trial Attorney Danielle L. Hickman of the Human Rights and Special Prosecutions Section of the Criminal Division of the Department of Justice.
DEFENDANTS Case Number 22cr1550-LL
Cecilio Yonatan Jimenez-Bautista Age: 27 Mexico
SUMMARY OF CHARGES
Bringing an Alien to the United States for Financial Gain and Aiding and Abetting – Title 8, U.S.C., Section 1324(a)(2)(B)(ii), and Title 18, U.S.C., Section 2
Maximum penalty: Fifteen years (Five years mandatory minimum) and $250,000 fine
AGENCY
Homeland Security Investigations
U.S. Border Patrol
Project Manager Admits to Submitting Fake Permit for Fill of WetlandsRead the Press Release
NEWS RELEASE SUMMARY – October 30, 2023
SAN DIEGO – Fiona Skye McKenna, a project manager for a firm developing properties in the Otay Mesa area, pleaded guilty in federal court today, admitting that she falsified permits that led to the illegal discharge of pollutants in connection with a project known as the International Industrial Park.
In pleading guilty, McKenna admitted that she forged permits purportedly issued by the California Regional Water Quality Control Board and the U.S. Army Corps of Engineers to place fill dirt, rock and sand into Johnson Canyon Creek at the International Industrial Park site. McKenna falsified the permits by cutting and pasting from permits the firm had obtained for work at another site.
On October 26, 2022, McKenna submitted the forged permits to the San Diego County Land Development Office to obtain a grading permit. After receiving the grading permit, the firm discharged fill dirt, rock and sand into portions of Johnson Canyon Creek, utilizing dump trucks and heavy duty powered shovels. The wetlands area of Johnson Creek flows into the Otay River, which flows into San Diego Bay.
According to the EPA, wetlands are important because, in addition to providing food and habitat for a diverse array of plants and animals, they act as buffers to flooding and erosion and serve as key links in the global water cycle. Because of their sponge-like ability to absorb water, wetlands can slow the momentum of flood waters or a coastal storm surge. Wetlands’ highly developed root systems also hold soil in place and filter pollutants, naturally improving water quality.
Sentencing is set for January 19, 2024, at 9:00 a.m., before U.S. District Judge Ruth B. Montenegro.
This case is being prosecuted by Assistant U.S. Attorney Melanie K. Pierson.
DEFENDANT Case Number 23cr2249-RBM
Fiona Skye McKenna Age: 37 San Diego, CA
SUMMARY OF CHARGES
Illegal Discharge of Pollutants – Title 33, U.S.C., Sections 1311(a) and 1319(c)(2)(A)
Maximum penalty: Three years in prison and fine of not less than $5,000 or more than $50,000 per day of violation
AGENCY
U.S. Environmental Protection Agency, Criminal Investigations Division; U.S. Army Corps of Engineers; California State Water Board Office of Enforcement
Poway Man Sentenced to Prison after Concealing Mother’s Death for 32 years, Stealing over $800,000 in Government BenefitsRead the Press Release
NEWS RELEASE SUMMARY – October 27, 2023
SAN DIEGO – Donald Felix Zampach, who concealed his mother’s death in 1990 then stole more than $800,000 in government benefits intended for her, was sentenced in federal court today to 24 months in prison.
Zampach pleaded guilty to money laundering and Social Security fraud in June 2023. According to his plea agreement, Zampach’s mother died in Japan in 1990. At the time of her death, she was receiving a widow’s pension from the Social Security Administration and an annuity from the Department of Defense (DoD). Zampach maintained his mother’s bank accounts for over three decades after her death, forged her signature on certificates of eligibility to keep her government benefits in pay, and filed forged federal income taxes.
Zampach admitted that between November 1990 and September 2022, he received at least $830,238 intended for his mother. Zampach used his mother’s identity to fraudulently open credit accounts with at least nine financial institutions, causing losses of more than $28,000. Zampach laundered the stolen monies in part to pay off the mortgage on his Poway home.
Zampach was ordered to pay $858,876.28 in restitution and to forfeit more than $830,000, including his home.
“This is theft on a grand scale,” said U.S. Attorney Tara K. McGrath. “Mr. Zampach stole from service members and those who dutifully pay into Social Security, expecting that when their time comes to retire, the money will be there. Thanks to the diligent efforts of our Social Security Administration partners, Mr. Zampach must pay back what he stole, and be held accountable for this decades-long crime.”
“Mr. Zampach’s sentencing culminates a more than 30-year fraud scheme that he knowingly and willingly implemented to the detriment of the American taxpayer by unlawfully obtaining Department of Defense and Social Security benefits,” said DoD Inspector General Robert P. Storch. “My office, working through its Defense Criminal Investigative Service and with our law enforcement partners, will continue to vigorously investigate and prosecute criminal activities that siphon away the invaluable resources entrusted to the DoD.”
“Mr. Zampach intentionally withheld material information from the Social Security Administration (SSA) to fraudulently obtain more than $250,000 in SSA benefits. This sentence holds him accountable for his devious, decades-long fraud,” said Gail S. Ennis, Inspector General for SSA. “In total, he stole more than $800,000 in public money; and my office will continue to partner with law enforcement to investigate those who defraud SSA and government agencies. I thank the investigators, the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Jeffrey D. Hill for their successful efforts in investigating and prosecuting this crime.”
This case was prosecuted by Special Assistant U.S. Attorney Jeffrey D. Hill.
DEFENDANT Case Number 23cr1268-CAB
Donald Felix Zampach Age: 65 Poway, CA
SUMMARY OF CHARGES
Money Laundering – Title 18, U.S.C., Section 1956(a)(1)(B)(i)
Maximum penalty: Twenty years in prison and $500,000 fine
Social Security Fraud – Title 42, U.S.C. Section 408(a)(4)
Maximum penalty: Five years in prison and $250,000 fine
AGENCIES
Social Security Administration – Office of the Inspector General
Department of Defense – Office of the Inspector General – Defense Criminal Investigative Service
Illicit Money Transmitters Admit Criminal Scheme to Funnel Money to Nevada CasinoRead the Press Release
NEWS RELEASE SUMMARY – October 27, 2023
SAN DIEGO – Two Mexican nationals and their unlicensed money transmitting business admitted in federal court today that they illegally helped foreign gamblers move money stealthily through the U.S. financial system to avoid scrutiny by U.S. and foreign law enforcement and regulators.
Defendants Francisco Alberto Garza-Vargas and Ricardo Najera-Almaguer, both of San Pedro Garza Garcia, Mexico, and Carma de Monterrey SA de CV, a Mexican corporation headquartered in Monterrey, Mexico, admitted they conspired to operate an unlicensed money transmitting business on behalf of foreign patrons of the casino industry.
Garza-Vargas was previously a registered agent with the Nevada Gaming Commission. Casinos typically contract with such agents to be a liaison between casinos and high-rolling guests. These agents bring players into a particular casino; and in return, they are compensated with commission by that casino.
According to court documents, the defendants’ unlicensed money transmitting enterprise conducted more than 115 illegal transfers with bank accounts controlled by the casino industry in the aggregate amount of approximately $8,129,664.
These cases bring to 15 the total number of defendants who have admitted wrongdoing in this investigation into money laundering, unlicensed money transmitting, and other crimes, with associated criminal penalties of over $7.5 million.
During today’s hearing, U.S. District Judge Dana M. Sabraw accepted Garza-Vargas’ and Najera-Almaguer’s deferred prosecution agreements and the corporation’s guilty plea and ordered the defendants to pay criminal fines and other financial penalties totaling $3,198,397.
According to court documents, the defendants conducted financial transactions for casino patrons located abroad who sought to gamble in the United States. To have funds available for that purpose in the United States, the defendants transferred the patron’s funds through a series of bank accounts controlled by the corporation defendant and others into casino-controlled bank accounts. The circuitous transfers helped patrons evade laws and regulations designed to prevent money laundering.
As a result of not registering their money transmitting business, not maintaining an anti-money laundering program, and not filing required suspicious activity reports or currency transaction reports, the defendants were able to conceal the sources of funds. This conduct obscured the nature of the transactions from other United States-based financial institutions and inhibited the ability of law enforcement and other authorities to investigate.
Today’s proceedings follow a similar resolution as that of defendant Juan Carlos Palermo on April 20, 2022, who in a related case admitted to money laundering in the promotion of his own unlicensed money transmitting business. Since October 2012, while acting as an agent for one casino, defendant Palermo operated multiple unlicensed businesses in the United States and abroad that conducted more than 200 transfers with bank accounts controlled by multiple casino entities, over $17.7 million, on behalf of at least 50 casino gambling patrons.
Between approximately 2012 and 2020, defendant Palermo and his unlicensed money transmitting business transacted with clients, and related financial accounts, in at least 15 countries, including countries that the United States Department of State has identified as “Major Money Laundering Countries” of “primary concern” like Mexico, Argentina, Cayman Islands, Switzerland, United Arab Emirates, and Hong Kong. The Palermo money transmitting business’s use of these bank accounts and other financial services allowed clients to conduct international monetary transfers through underground financial networks engaged in transferring funds, exchanging currency, and other money transmitting and remitting services, while circumventing laws and regulations regarding monetary transfer and reporting in the U.S. and elsewhere.
This case is being prosecuted by Assistant U.S. Attorneys Carl F. Brooker IV, Christopher Beeler, and Mark W. Pletcher and investigated by Homeland Security Investigations and the IRS Las Vegas Financial Crimes Task Force.
DEFENDANTS
Francisco Alberto Garza-Vargas Age: 59 San Pedro Garza Garcia, MX
(Case Number 23-CR-0219-DMS)
Ricardo Najera-Almaguer Age: 68 San Pedro Garza Garcia, MX
(Case Number 23-CR-0219-DMS)
Carma de Monterrey S.A. de CV Monterrey, MX
(Case Number 22-CR-0219-DMS)
Juan Carlos Palermo Age: 64 Buenos Aires, Argentina
(Case Number 22-CR-0859-DMS)
SUMMARY OF CHARGES
Conspiracy to Operate an Unlicensed Money Transmitting Business – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine
AGENCIES
Homeland Security Investigations
IRS-Criminal Investigations, Las Vegas Financial Crimes Task Force
Former Navy Civilian Employee Pleads Guilty to Conspiracy to Commit BriberyRead the Press Release
NEWS RELEASE SUMMARY – October 26, 2023
SAN DIEGO – Dawnell Parker of Athens, Alabama, pleaded guilty in federal court today to bribery charges, admitting that while she was a public official at Naval Information Warfare Center in San Diego, she accepted thousands of dollars in free meals from defense contractors in exchange for helping them win and maintain millions of dollars in government contracts.
As part of the conspiracy, Parker received the free dinners at various restaurants, including Ruth’s Chris, De Medici Cucina and the University Club. In return, she took official action to aid her benefactors, like allowing defense contractors to draft government documents and submitting those documents as part of the procurement process and advocating for their selection as defense contractors.
According to Parker’s plea agreement, from approximately March 2016 through at least October 2019, she and a coworker received bribes from the president and CEO of a Fredericksburg, Virginia defense contractor. In return, Parker, acting under the direction of her coworker, used various methods to steer contracts to the contractor. Parker also admitted that she and the coworker separately received bribes from a different defense contractor, with offices in San Diego, California, and Stafford, Virginia, who also gave her things of value including expensive meals.
“Corruption in the defense procurement process wastes taxpayer dollars and undercuts public confidence in government,” said U.S. Attorney Tara McGrath. “The contracting process must be reliable and honest to ensure our service members receive the best possible support.”
“Ms. Parker selfishly chose to enrich herself at the expense of the Department of the Navy by accepting bribes in exchange for steering contracts worth millions of dollars to certain companies,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS is dedicated to rooting out bribery and fraud that damage the integrity of the Department of the Navy procurement process and threaten warfighter readiness.”
“Ms. Parker’s guilty plea should act as a deterrent for individuals contemplating or attempting to misuse a position of public trust to subvert the integrity of the government’s acquisition process,” said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS remains committed to working jointly with the United States Attorney’s Office and our law enforcement partners to investigate and deter public corruption within the Department of Defense.”
“Bribery as a means to fraudulently access federal programs for personal gain will not be tolerated,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Our office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
“Ms. Parker’s actions directly undermined the fair competition that ensures our warfighters always have the technological advantage over potential adversaries,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “CI is committed to working with our fellow law enforcement agencies and will follow the money, wherever it may lead, to help protect our country.”
DEFENDANT Case Number 23cr2192-TWR
Dawnell Parker Age: 54 Athens, AL
SUMMARY OF CHARGES
Conspiracy to Commit Bribery - Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison; $250,000 fine
AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Small Business Administration – Office of Inspector General
Internal Revenue Service Criminal Investigation
Department of Health and Human Services – Office of Inspector General
If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098.
University City High School Teacher Charged with Attempted Enticement of a MinorRead the Press Release
NEWS RELEASE SUMMARY – October 24, 2023
SAN DIEGO – Sean Stevenson, a high school science teacher at University City High School, was arrested today by the San Diego Human Trafficking Task Force and charged in federal court with Attempted Enticement of a Minor.
Stevenson is scheduled to make his initial appearance before U.S. Magistrate Judge Mitchell Dembin on October 25, 2023, at 2 p.m.
Stevenson’s alleged illicit activity was discovered during another sex trafficking investigation. According to a criminal complaint, a review of messages from that investigation identified Stevenson as interested in paying for sex with a minor.
An undercover law enforcement officer began text messaging with Stevenson via the Pinger application. The officer claimed to be sex trafficking her 16-year-old cousin.
The complaint states that on October 23, 2023, Stevenson messaged the undercover officer and negotiated a price of $140 for oral sex from a 16-year-old girl. Stevenson and the undercover officer agreed to meet early on October 24, 2023, on El Cajon Boulevard for the “date” with the minor. Stevenson arrived at the location around 7 a.m. and was arrested.
The complaint states that $140 was found in Stevenson’s car.
This case is being prosecuted by Assistant U.S. Attorneys Derek Ko and Andrew Sherwood.
Anyone with information about this case is urged to contact San Diego County Crime Stoppers (888-580-8477) and the National Human Trafficking Hotline (888-373-7888).
DEFENDANTS Case Number 23MJ3854
Sean Stevenson Age: 58 San Diego, CA
SUMMARY OF CHARGES
Attempted Enticement of a Minor– Title 18, U.S.C., Section 2422(b)
Maximum penalty: Life in prison, 10-year mandatory minimum
AGENCY
Homeland Security Investigations
San Diego Human Trafficking Task Force
The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Woman Pleads Guilty to Drug Trafficking and Obstruction of Justice in So-Called “Blind Mule” CaseRead the Press Release
NEWS RELEASE SUMMARY – October 20, 2023
SAN DIEGO – Victoria Carmona of San Antonio, Texas, pleaded guilty in federal court this week to a four-count indictment charging her and an unnamed codefendant with importation of cocaine, conspiracy to import controlled substances, conspiracy to obstruct justice, and obstruction of justice. The obstruction charges stem from Carmona’s extensive efforts to concoct a cover story beforehand if she was caught smuggling drugs and paint herself as a so-called “blind mule.”
According to the indictment and plea agreement, Carmona conspired with her codefendant and others to import illicit narcotics into the United States from Mexico. The conspiracy culminated in Carmona’s arrest at the San Ysidro Port of Entry on February 20, 2023, after she imported 19.22 kilograms (42.37 pounds) of cocaine into the United States in her vehicle.
After her arrest, as part of the planned cover story, Carmona claimed she was unaware of the hidden drugs and said she recently accepted a job offer on Facebook to pick up cash in the United States and transport it to Mexico. According to Carmona, earlier that day she was instructed to give her vehicle to others to install a GPS device as an added security measure for the cash Carmona would be transporting. Carmona suggested those individuals planted drugs in her car without her knowledge.
Carmona showed investigators detailed Facebook Messenger conversations purportedly between herself and the individual who offered her the job that supposedly confirmed her account.
In her plea agreement, however, Carmona admitted she and her codefendant fabricated the Facebook Messenger communications to make it appear she was tricked into smuggling narcotics. In the communications, the codefendant played the part of the fictitious person who supposedly hired Carmona to transport cash to Mexico. Carmona admitted she smuggled drugs into the United States seven times and, with the aid of her codefendant, falsified Facebook Messenger communications before each trip that purportedly corroborated the account she planned to tell investigators if she was caught.
“Ms. Carmona went to extraordinary lengths to try to conceal over 40 pounds of cocaine from customs officers,” said U.S. Attorney Tara K. McGrath. “But her concocted story did not fool them or the U.S. Attorney’s Office. Ms. Carmona’s guilty plea today reflects the serious charges drug smugglers face when they try to bring dangerous drugs into this country.”
“HSI is committed to investigating criminal organizations that smuggle dangerous drugs into the United States and ultimately into our communities,” said Chad Plantz, Special Agent in Charge of Homeland Security Investigations in San Diego. “I commend the work of our special agents and the U.S. Attorney’s office for uncovering this conspiracy and disproving this fabricated story used by the defendant to conceal her involvement in this smuggling conspiracy.”
A sentencing hearing is scheduled for January 29, 2024, before U.S. District Judge Gonzalo P. Curiel.
This case is being prosecuted by Assistant U.S. Attorney Robert J. Miller.
DEFENDANTS Case Number 23cr1119-GPC
Victoria E. Carmona Age: 25 San Antonio, CA
SUMMARY OF CHARGES
Conspiracy to Import Cocaine – Title 21, U.S.C., Sections 952, 960 and 963
Maximum penalty: Twenty years in prison and $1,000,000 fine
Importation of Cocaine – Title 21, U.S.C., Sections 952 and 960
Maximum penalty: Twenty years in prison and $1,000,000 fine
Conspiracy to Obstruct Justice – Title 18, U.S.C., Sections 371 and 1519
Maximum penalty: Twenty years in prison and $250,000 fine
Obstruction of Justice – Title 18, U.S.C., Section 1519
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCY
Homeland Security Investigations
Imperial Valley Doctor Sentenced for Years-Long Use of Unapproved Cosmetic DrugsRead the Press Release
NEWS RELEASE SUMMARY – October 20, 2023
SAN DIEGO – Tien Tan Vo, a doctor practicing in Imperial Valley, was sentenced in federal court yesterday for crimes related to his years-long use of foreign unapproved and misbranded cosmetic drugs. According to his plea and court records, Vo injected as many as 178 patients with unapproved drugs that had been smuggled into the United States from Mexico.
Magistrate Judge Allison H. Goddard sentenced Vo to three years of probation and ordered him to pay a $201,534 fine and forfeit the $100,767 in proceeds he made from his use of unlawful cosmetic drugs. A restitution hearing is set for December 7, 2023, to finalize an order for restitution to potential victims.
In August, Vo pleaded guilty to two misdemeanor counts: receipt of misbranded drugs in interstate commerce and being an accessory after the fact to Flor Cham, who smuggled the unapproved drugs into the United States from Mexico. Cham is charged in case number 23-cr-01926-JLS.
In his plea agreement, Vo admitted that none of the injectable botulinum toxin or lip fillers used by his clinics between November 2016 and October 2020 were approved for use in the United States. This specifically included a botulinum toxin product called “Xeomeen” and an injectable lip filler called Probcel—both products that have not been approved by the U.S. Food and Drug Administration.
According to court papers, Vo used these unapproved drugs on approximately 178 patients over about four years. Many were never told that they received unapproved drugs as part of their treatment.
“The public faith in the FDA approval process relies on medical providers adhering to those rules,” said U.S. Attorney Tara McGrath. “By side-stepping the safety and approval protocols of the FDA, Dr. Vo compromised care and put profits before patients. But thanks to the hard work of the agencies and our federal restitution process, those ill-gained profits will be recovered in this case.”
“Today’s sentencing serves as our promise to use every tool to investigate and hold accountable those who deliberately smuggle and administer products that pose a significant public health threat,” said Chad Plantz, special agent in charge for HSI San Diego. “HSI, together with the U.S. Attorney’s Office will continue to work together to prosecute those individuals who deceive and threaten our communities.”
“The FDA’s requirements help ensure that patients receive safe and effective medical treatments. Evading the FDA process and distributing unapproved drugs to U.S. consumers will not be tolerated,” said Special Agent in Charge Robert M. Iwanicki, FDA Office of Criminal Investigations, Los Angeles Field Office. “We will continue to investigate and hold accountable those who traffic in unapproved drugs.”
A restitution hearing is set for December 7, 2023, at 9:30 a.m. before Judge Allison H. Goddard.
Potential victims related to this case may provide or request information by emailing USACAS.Cosmetic.Case@usdoj.gov. Individuals may submit written statements including information about potential losses or requests for refunds that may be included as part of the restitution ordered on December 7, 2023.
DEFENDANT Case Number 23cr1700-AHG
Tien Tan Vo Age: 47 El Centro, CA
SUMMARY OF CHARGES
Accessory After the Fact to Entry of Goods by Means of False Statement – Title 18, U.S.C., Sections 542 and 3
Maximum penalty: one year in prison, fine of $100,000 or twice the pecuniary gain or loss
Receipt in Interstate Commerce of Misbranded Drugs and Delivery for Pay or Otherwise – Title 21, U.S.C., Sections 331(c) and 333(a)(1)
Maximum penalty: one year in prison, fine of $1,000 or twice the pecuniary gain or loss
AGENCIES
Homeland Security Investigations
U.S. Food and Drug Administration, Office of Criminal Investigations
Federal Bureau of Investigation
U.S. Department of Health and Human Services, Office of Inspector General
Brothers Admit to Conspiracy to Traffic Firearms They Believed Were Bound for MexicoRead the Press Release
NEWS RELEASE SUMMARY – October 19, 2023
SAN DIEGO – Homero Cervantes Rosales and Mauricio Cervantes Rosales – brothers from Perris, California - pleaded guilty in federal court today to conspiring to traffic firearms they believed were bound for Mexico and dealing firearms without a license.
They entered their guilty pleas before U.S. Magistrate Judge Karen S. Crawford. The defendants admitted that they and others exchanged marijuana with co-conspirators in Texas for firearms, which they sold to individuals they believed were drug traffickers. The defendants also used other sources to obtain firearms for the conspiracy.
According to the plea agreements, from February through April of this year, Homero and Mauricio Cervantes Rosales sold more than 30 firearms, including many Privately Made Firearms, also known as ghost guns; short-barrel rifles; silencers; and machine guns, for an estimated value of $60,000, to a cooperating individual and undercover agents who were posing as international drug traffickers. During one sale, Homero Cervantes Rosales said that with advance notice, he could get any kind of firearms or ammunition. According to plea agreements, undercover agents told the defendants the “firearms were destined for Mexico.”
“Trafficking guns into Mexico arms criminal organizations which then funnel drugs back into the United States,” said U.S. Attorney Tara K. McGrath. “In this case, ATF was able to seize an arsenal. And, without their intervention those guns would have put lives at risk on both sides of the border.”
“This is an excellent example of the use of new criminal firearms trafficking offense, 18 U.S.C. § 933,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge of Los Angeles Field Division Christopher Bombardiere. “Firearms traffickers are responsible for the violence committed with those guns. As a society we have to make firearms trafficking as socially reprehensible as the crimes committed with those guns. These defendants were well aware these guns were destined for Mexico but kept making the firearm sales.”
This case is being prosecuted by Assistant U.S. Attorney Matthew Brehm.
DEFENDANTS Case Number 23cr0956-JO
Homero Cervantes Rosales Age: 38 Perris, CA
Mauricio Cervantes Rosales Age: 28 Perris, CA
SUMMARY OF CHARGES
Conspiracy to Traffic Firearms – Title 18, U.S.C., Section 933(a)
Maximum penalty: Fifteen years in prison and $250,000 fine
Dealing Firearms Without a License - Title 18, U.S.C., Section 922(a)(1)(A)
Maximum penalty: Five years in prison and $250,000 fine
AGENCY
Bureau of Alcohol, Tobacco, Firearms and Explosives
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Firearms Trafficker Sentenced to 15 Years in Prison for Supplying Weapons and Ammunition to Sinaloa CartelRead the Press Release
NEWS RELEASE SUMMARY – October 18, 2023
SAN DIEGO – Alfredo Lomas Navarrete, a prolific firearms trafficker, was sentenced in federal court today to 15 years in custody for his role in supplying hundreds of high-powered weapons and tens of thousands of rounds of ammunition to the Sinaloa Cartel.
This case is part of a long-running investigation targeting the Valenzuela Transnational Criminal Organization (TCO), which is a significant component of the Sinaloa Cartel. The Valenzuela TCO is one of the largest importers of cocaine into the United States. The TCO sources cocaine and other controlled substances (including fentanyl, heroin, methamphetamine, and marijuana) from South America and Mexico, transports the drugs to multiple locations along the U.S.-Mexico border using commercial trucking companies, smuggles the narcotics into the country, and distributes them throughout the U.S. The TCO then smuggles the bulk cash proceeds from its drug trafficking activities back to the TCO’s leadership in Mexico.
According to court records, throughout 2020, the Valenzuela TCO, including one of its leaders, Jorge Alberto Valenzuela Valenzuela (“Jorge”), was engaged in violent conflict with another component of the Sinaloa Cartel led by Ivan Archivaldo Guzman-Salazar. During this conflict, Jorge’s brother and previous TCO leader, Gabriel Valenzuela-Valenzuela, was killed. This led the Valenzuela TCO to procure large quantities of firearms, ammunition, tactical gear, armored vehicles, and ballistic vests. A considerable number of these items were sourced from within the United States and clandestinely smuggled into Mexico, using numerous arms trafficking networks.
During the multi-year investigation, agents identified Alfredo Lomas Navarrete as a major firearms trafficker for the TCO. Agents recovered hundreds of messages between Jorge and Lomas in which they discussed firearms trafficking. Lomas worked closely with Jorge and other high-ranking organization members to supply hundreds of firearms to the TCO. These firearms ranged from .50 caliber rifles, submachine guns, and grenade launchers, to assault rifles (AK-47s, AR-15s, FN SCARs) and handguns. In addition to the weapons, Lomas and his co-conspirators supplied tens of thousands of rounds of ammunition to the TCO. Some of these weapons and ammunition were acquired in the United States, including in California, Arizona, and Nevada, and then smuggled through the Ports of Entry in San Diego and Arizona into Mexico
To date, this investigation has resulted in the charging of 109 defendants and the seizure of approximately 2,000 kilograms of cocaine and fentanyl, over $16 million in cash, and 21,000 rounds of ammunition.
Lomas pleaded guilty in April 2023 to conspiring to import cocaine, distribute cocaine, commit money laundering, and to smuggle goods from the United States.
“The amount of cash, ammunition, and narcotics seized in this case is staggering,” said U.S. Attorney Tara McGrath. “The collaboration in this case sends a clear message that the U.S. Attorney’s Office will attack every facet of drug trafficking organizations from money to drugs to firearms. We will stay after it for as long as it takes to bring them to justice.”
“The Venezuelan transnational criminal organization has brought death and suffering to countless people through their once prosperous criminal enterprise,” said Chad Plantz, special agent in charge for HSI San Diego. “The sentencing of this firearms trafficker sends a resounding message to traffickers and criminals around the world that HSI and the law enforcement community will vehemently pursue those who seek to harm not only Americans, but humanity as a whole with their brutality and deadly drugs.”
“Drug cartels use drug proceeds to purchase weapons and ammunition, fueling violence in our communities,” said DEA Special Agent in Charge Shelly Howe. “DEA and our federal, state, and local partners will continue to hold drug traffickers and the cartels responsible for the carnage and destruction they cause.”
“The sentencing of Mr. Navarrete is a major milestone in federal law enforcement’s efforts to disrupt and dismantle illegal trafficking operations of all kinds,” said FBI San Diego Special Agent in Charge, Stacey Moy. “We are proud to support our law enforcement partners in all efforts that target and take down crime organizations that threaten the citizens of the United States of America.”
“Mr. Navarrete’s enablement of violence on both sides of the U.S.-Mexico border is over,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Crime leaves a money trail, and when we pool our resources we are able to find the evidence necessary to lead to conviction. Navarrete is going to prison because of a well-coordinated joint investigation we are proud to have been part of.”
This case is being prosecuted by Assistant U.S. Attorneys Matthew J. Sutton and Mikaela Weber.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
DEFENDANT Case Number 21-cr-2960-AGS
Alfredo Lomas Navarrete Age: 33 Culiacan, Mexico
SUMMARY OF CHARGES
International Conspiracy to Distribute Cocaine for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963.
Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.
Conspiracy to Import Cocaine, in violation of Title 21 U.S.C. §§ 952, 960 and 963.
Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.
Conspiracy to Distribute Cocaine, in violation of Title 21 U.S.C. §§ 841(a)(1) and 846.
Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.
Conspiracy to Launder Monetary Instruments, in violation of Title 18 U.S.C. 1956(h).
Maximum Penalty: Twenty years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved.
Conspiracy to Smuggle Goods, in violation of Title 18, U.S.C. §§ 371 and 554(a).
Maximum Penalty: Five years in prison, fine of $250,000.
AGENCY
Homeland Security Investigations
Drug Enforcement Administration
Federal Bureau of Investigation
Internal Revenue Service - Criminal Investigation
United States Marshals Service
Customs and Border Protection, Office of Field Operations
Customs and Border Protection, Office of Border Patrol
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of Enforcement Operations
Department of Justice, Office of International Affairs
San Diego County Sheriff’s Department
San Diego Police Department
Border Crime Suppression Team
San Diego County District Attorney’s Office
Former U.S. Navy Service Member Sentenced for $2 Million Insurance Fraud SchemeRead the Press Release
NEWS RELEASE SUMMARY – October 17, 2023
SAN DIEGO – Christopher Toups, who at the time of his crimes was a chief petty officer in the U.S. Navy, was sentenced in federal court to 30 months in prison after admitting that he and others defrauded an insurance program meant to compensate service members who suffer serious and debilitating injuries while on active duty.
Toups’ sentence followed his guilty plea to conspiracy to commit wire fraud. According to his plea agreement, participants in the scheme obtained approximately $2 million in payments from fraudulent claims submitted to Traumatic Servicemembers Group Life Insurance Program, or TSGLI, and Toups personally obtained about $400,000. TSGLI was funded by service members and the Department of the Navy.
Toups admitted that from 2012 to at least December 2015, he conspired with his then-spouse Kelene McGrath, Navy Dr. Michael Villarroel, and others to obtain money from the United States by making claims for life insurance payments based on exaggerated or fake injuries and disabilities.
“Lying and stealing funds meant for injured service members is appalling,” said U.S. Attorney Tara McGrath. “The United States Attorney’s Office is committed to protecting those who serve, and this case is an excellent example of law enforcement collaboration to do just that.”
“Fraudulently filing claims for unearned benefits diverts compensation from deserving service members who suffered serious and debilitating injuries while on active duty,” said Special Agent in Charge Rebeccalynn Staples with the Department of Veterans Affairs Office of Inspector General’s Western Field Office. “This sentence holds the defendant accountable for his egregious actions, and the VA OIG will continue to work tirelessly with our law enforcement partners to ensure schemes like this are uncovered, investigated, and prosecuted to the fullest extent of the law.”
“Mr. Toups participated in a fraud scheme that defrauded the American taxpayer and diverted vital money, care, and resources from service members recovering from traumatic injuries,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “This sentence demonstrates the commitment of NCIS and its partners to combatting fraud that harms the Department of the Navy and its warfighters.”
“Stealing from a program set in place to aid injured and disabled servicemembers diverts compensation from deserving individuals,” said FBI San Diego Special Agent in Charge Stacey Moy. “Willingly defrauding the American people, especially those who protect our country, will not be tolerated. The FBI will continue to collaborate with our law enforcement partners to ensure those who commit such acts are held accountable.”
According to the plea agreement, in addition to submitting his own TSGLI claims based on fake injuries and disabilities, Toups encouraged numerous current or former Navy service members to submit claims and sometimes told them to provide medical records to McGrath. McGrath, a nurse, falsified or doctored medical records to exaggerate or fake injuries. Villarroel certified that he reviewed the records and determined activities of daily living were lost or impaired and consistent with the claimed injuries as required for claims to be processed and qualify, at times supporting the determination by falsely stating he interviewed the claimant. Villarroel also, at times, provided others’ medical records for McGrath to use in fabricating claims.
Toups admitted that he encouraged recipients of claim payments to give him part of the money, sometimes characterizing it as a “processing fee.” McGrath and Villarroel received part of the kickback depending on their involvement in the claim. Toups paid Villarroel in cash and by cashier’s check. At times, Toups and others conducted financial transactions in amounts under $10,000 to evade perceived financial reporting requirements.
According to court records, Toups and his co-defendants were part of the Explosive Ordinance Disposal Expeditionary Support Unit One (“EOD ESU One”), based in Coronado, California. Toups was a Chief Petty Officer Construction Mechanic.
DEFENDANT 18CR1674-JLS
Christopher Toups 46 White, GA
RELATED CASES
Kelene Meyer 18CR1674-JLS Jacksonville, FL
Dr. Michael Villarroel 18CR1674-JLS Coronado, CA
Paul Craig 18CR1674-JLS Austin, TX
Richard Cote 18CR1674-JLS Oceanside, CA
Earnest Thompson 18CR1674-JLS Murrieta, CA
Ronald Olmsted 20CR0659-JLS Mobile, AL
Anthony Coco 20CR0197-JLS San Diego, CA
Stephen Mulholland 20CR0052-JLS Panama City Beach, FL
SUMMARY OF CHARGES
Toups:
18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution
Others:
18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution
18 U.S.C. § 1343, Wire Fraud
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution
18 U.S.C. § 287, Making a False Claim
Maximum Penalty: Five years in prison, $250,000 fine
AGENCIES
Federal Bureau of Investigation
Naval Criminal Investigative Service
Department of Veterans Affairs - Office of Inspector General
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Former San Diego Police Officer and Three Others Sentenced for Crimes Stemming from Years-long Operation of Illicit Massage BusinessesRead the Press Release
NEWS RELEASE SUMMARY – October 13, 2023
SAN DIEGO – Peter Griffin, a retired San Diego police vice detective, attorney, and private investigator, was sentenced in federal court today to 33 months in custody for his central role in a conspiracy to operate five California- and Arizona-based illicit massage businesses that profited for years by selling commercial sex under the guise of offering therapeutic massage services.
Griffin’s three co-defendants - Kyung Sook Hernandez, Yu Hong Tan, and Yoo Jin Ott - who managed the illicit massage businesses in Griffin’s network and actively concealed the scheme from law enforcement, were each sentenced to six months in custody.
According to court documents and admissions in plea agreements, the defendants owned and operated “Genie Oriental Spa,” “Felicita Spa,” “Blue Green Spa,” “Maple Spa,” and “Massage W Spa,” located in the greater San Diego area and in Tempe, Arizona, between 2013 and August 2022. The criminal scheme included incorporating their businesses with state agencies, managing the businesses’ illicit proceeds, advertising commercial sexual services online, recruiting and employing women to perform commercial sex services in the businesses, and benefiting financially from the illegal enterprises.
The defendants leased multiple commercial properties as storefronts, leased and bought residential properties to use as housing for employees, and secured credit card processing equipment to facilitate the illegal businesses. Griffin oversaw nearly every aspect of the illicit businesses, making himself indispensable to their operation, and assumed the role of “boss.”
Through the course of the scheme, the defendants exploited the victims, mostly vulnerable, non-English speaking immigrants from Korea and China with limited employment opportunities and financial resources; pressured and expected the employees to perform commercial sex services inside the businesses; and made substantial financial profits from the illegal commercial sexual activity. When one employee initially refused to perform commercial sexual services, one of the defendants instructed her to “leave [her] morals in China” in order to “make the customers happy.”
Griffin, who left the department in 2002, previously worked as a detective with the Vice Operations Unit of the San Diego Police Department, a unit tasked with dismantling the very businesses he operated and promoted for personal profit. Throughout the nine-year criminal scheme, Griffin used the experience and skills he acquired through his work as a vice detective – skills honed by his education as an attorney and work as a private investigator – and his reputation as a former police officer to help the businesses evade law enforcement; conceal evidence; pressure employees to engage in commercial sex; maintain a façade of legitimacy; and thwart regulatory inspections, investigations, and any official action against the businesses.
According to his plea agreement, on several occasions, Griffin used his status as a former law enforcement officer to falsely assure local authorities that his businesses would be operated legitimately. On another occasion, Griffin flashed his badge to a local officer responding to a citizen complaint regarding one of his illicit businesses. Additionally, Griffin told an employee that he was a former police officer and instructed her not to “open [her] mouth” about working at the illicit massage business. Griffin’s co-defendants similarly informed employees of Griffin’s law enforcement background and his resulting “connections” and promised he would protect the illegal businesses from law enforcement detection. Griffin also abused resources he had access to by virtue of his private investigator license to obtain information on customers and employees on behalf of the illicit massage businesses.
“Illicit massage businesses hide in plain sight in many communities in America, including our district,” said U.S. Attorney Tara K. McGrath. “Operators of these businesses often profit through exploitation. For years, Peter Griffin used his connections as a former police officer for his own criminal profiteering. The U.S. Attorney’s Office is committed to prosecuting these kinds of offenses, protecting our communities, and ensuring that legitimate local businesses are not tarnished by criminal activity.”
“No one is above the law. I’m appalled that someone who once took an oath to protect our community could prey on the vulnerable,” said San Diego Chief of Police David Nisleit. “I’m proud of our own SDPD officers who helped make this investigation possible and I commend our partner agencies for their diligence in holding Peter Griffin and his accomplices accountable. This is an important step toward justice for the survivors of these crimes.”
“Law enforcement professionals swear an oath to protect and defend our communities, and the spirit of that oath should live on even when we stop carrying a badge,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Mr. Griffin preyed on people who should have felt safer because of his presence. He and his co-conspirators failed in their attempts to conceal their illicit activities because of our special agents’ unique ability to follow the money and a strong cross-agency effort to find the evidence to bring these predators to justice.”
“Peter Griffin abused and exploited vulnerable women by pressuring them into providing commercial sex for profit while taking advantage of his status in the community,” said Chad Plantz, special agent in charge for HSI San Diego. “This sentence sends a clear message to those who mistakenly believe they can get away with such repugnant crimes. HSI, in collaboration with our law enforcement partners, will continue to work vigorously to bring to justice those who exploit and victimize vulnerable members of our community.”
This case is being prosecuted by Assistant U.S. Attorney Jill S. Streja, Trial Attorney Caylee Campbell of the Money Laundering and Asset Recovery Section of the Criminal Division of the Department of Justice, and Trial Attorney Leah Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit.
DEFENDANTS Case Number 22cr1824-JO
Peter Griffin 79
Kyung Sook Hernandez 59
Yu Hong Tan 57
Yoo Jin Ott 46
SUMMARY OF CHARGES
Conspiracy, Interstate and Foreign Travel or Transportation in Aid of Racketeering (ITAR),
Maximum Penalty: Five years in prison, $250,000 fine
Conspiracy to Commit Wire Fraud
Maximum Penalty: Thirty years in prison, $1 million fine
Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity
Maximum Penalty: Ten years in prison, $250,000 fine or twice amount of criminally derived property
Misprision of a Felony
Maximum Penalty: Three years in prison, $250,000 fine
AGENCIES
Homeland Security Investigations
Internal Revenue Service Criminal Investigation
San Diego Human Trafficking Task Force, a regional, multi-agency effort led by the California Department of Justice dedicated to supporting survivors and holding traffickers accountable. The task force is comprised of numerous federal, state, and local agencies, as well as the Southwest Border High Intensity Drug Trafficking Area program.
U.S. Department of Justice, Money Laundering Asset Recovery Section, Special Financial Investigations Unit
Federal Bureau of Investigation
San Diego Police Department
San Diego Sheriff’s Department
Escondido Police Department
San Diego County District Attorney’s Office
Tempe, Arizona Police Department.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.
Riverside County Man Sentenced to Five Years for Federal Firearm and Drug Charges After High-Speed ChaseRead the Press Release
NEWS RELEASE SUMMARY –October 6, 2023
SAN DIEGO – Shane Glazer of Riverside County was sentenced in federal court today to 60 months for possessing a firearm in furtherance of his intent to distribute fentanyl, methamphetamine, and heroin.
According to the government’s sentencing papers, on June 10, 2022, San Diego police officers found the defendant in his car, slumped over and unconscious, with the keys in the ignition and the vehicle running. Glazer was wearing a fanny pack. In the pack, officers found fentanyl and methamphetamine as well as $3,600. In the car, officers also found an unserialized personally manufactured firearm, or “ghost gun,” loaded with ten rounds of ammunition, as well as a high-capacity magazine loaded with 29 rounds of ammunition. The defendant was released on bond pending trial.
Five weeks later, officers found Glazer again slumped over in the driver’s seat with the keys in the ignition and the vehicle running. This time, the defendant used his car to flee the scene. In his attempts to evade officers, Glazer ran a stop sign and two red lights, and then led officers on a vehicle pursuit that reached speeds of over 125 mph. The defendant swerved in and out of traffic, at one point nearly missing another vehicle as he rapidly careened through traffic lanes and drove onto the freeway. As the defendant attempted to enter the I-8 East freeway, he lost control of the vehicle, crashing into an embankment and eventually stopping at the I-8 median barrier. He then threw a loaded gun onto the I-8 West freeway and ran across the lanes of traffic. Vehicles were forced to swerve around Glazer, who narrowly avoided being hit. In addition to seizing the gun, officers searched Glazer’s vehicle and again found fentanyl, methamphetamine, and heroin, as well as $1,546 in cash.
“Drugs, guns and high-speed pursuits could have been a deadly combination,” said U.S. Attorney Tara McGrath. “But for the intervention by the San Diego Police Department, this could have been a catastrophe. Today, Mr. Glazer is being held accountable for his brazen disregard for the law.”
“ATF acknowledges individuals may lawfully possess, make and use privately made firearms under federal law, but those that use them in furtherance of drug trafficking will be held accountable,” said Chris Bombardiere, Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge of Los Angeles Field Division. “ATF will continue to focus on the misuse of firearms to combat violent crime in our communities.”
This case was prosecuted by Assistant U.S. Attorney Sandor Callahan.
DEFENDANT Case Number 22cr1972
Shane Glazer Age: 30 Sun City, CA
SUMMARY OF CHARGES
Possession of a Firearm in Furtherance of a Drug Trafficking Crime – Title 18 U.S.C. Section 924(c)(1)
Maximum penalty: Life in Prison
Possession of Fentanyl with Intent to Distribute – Title 21 U.S.C. Section 841(a)(1)
Maximum Penalty: Twenty Years in Prison
Possession of Methamphetamine with Intent to Distribute – Title 21 U.S.C. Section 841(a)(1)
Maximum Penalty: Twenty Years in Prison
Possession of Heroin with Intent to Distribute – Title 21 U.S.C. Section 841(a)(1)
Maximum Penalty: Twenty Years in Prison
AGENCY
The Bureau of Alcohol, Tobacco, and Firearms.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Tara K. McGrath Sworn in as United States Attorney, Becomes Chief Federal Law Enforcement Officer in One of Nation’s Busiest DistrictsRead the Press Release
NEWS RELEASE SUMMARY – October 5, 2023
SAN DIEGO – Tara K. McGrath, a U.S. Marine Corps veteran and former federal prosecutor in San Diego, was sworn in today as the United States Attorney for the Southern District of California.
Ms. McGrath, 49, was sworn in by Chief United States District Judge Dana M. Sabraw in a ceremony at the federal courthouse this afternoon. Ms. McGrath now oversees one of the busiest United States Attorney’s Offices in the nation. The office, which has a staff of about 300, serves approximately 3.5 million residents in San Diego and Imperial counties.
Ms. McGrath was nominated by President Biden in March and confirmed by the U.S. Senate on Friday, September 29, 2023.
“I am ready to get to work,” Ms. McGrath said. “We face substantial challenges in this region every day and we are incredibly fortunate to have countless public servants committed to our safety and well-being. I am honored to be rejoining them.”
Ms. McGrath returns to the U.S. Attorney’s Office in San Diego after departing in 2019 to serve as a civilian Litigation Attorney Advisor for the U.S. Marine Corps. In that role, Ms. McGrath provided senior-level oversight, ethics advice, and trial strategy guidance in criminal investigations and courts-martial across seven military bases in four countries. She also provided litigation expertise to Headquarters, U.S. Marine Corps.
A seasoned federal prosecutor, Ms. McGrath spent more than 10 years as an Assistant U.S. Attorney in the Southern District working on behalf of both San Diego and Imperial counties. Initially assigned to the General Crimes and Narcotics Enforcement sections, Ms. McGrath prosecuted more than 500 cases in federal court and led scores of investigations with federal agents involving grand juries, wire taps, and undercover agents. She has argued three cases before the U.S. Court of Appeals for the Ninth Circuit.
During her tenure as an Assistant U.S. Attorney, Ms. McGrath served as a Deputy Chief and Trial Team Leader in the General Crimes Section. In these roles, she supervised more than 70 federal prosecutors and support staff, overseeing the intake and prosecution of more than 4,000 cases annually, including border crimes, human trafficking, violent crime, public corruption, fraud, racketeering, narcotics, and civil rights cases.
For her work as a prosecutor, Ms. McGrath received the U.S. Department of Justice’s prestigious Director’s Award for Superior Performance, among other recognition. She also received the Department of the Navy’s Meritorious Civilian Service award for her significant contributions to policy development and prosecution of special victim cases.
During her time with the Department of Justice, Ms. McGrath also served as a trial attorney in the Office of Enforcement Operations in Washington, D.C. In that role, she provided technical legal advice to experienced Assistant United States Attorneys and federal agents throughout the United States on gathering electronic evidence in compliance with federal law and DOJ policy, and she coordinated DOJ case management with attorneys from centralized enforcement divisions, including the racketeering, fraud, and narcotics prosecution sections.
Ms. McGrath graduated from University of Michigan Law School in 2001 and earned a B.A., cum laude, from Boston College in 1995.
Second Executive Admits Participating in $150 Million Fraud on QualcommRead the Press Release
NEWS RELEASE SUMMARY – October 5, 2023
SAN DIEGO – Ali Akbar Shokouhi, the primary investor of a technology company sold to Qualcomm for over $150 million, pleaded guilty in federal court today, admitting his role in a massive fraud.
Shokouhi, a San Diego resident, pleaded guilty to one count of money laundering related to a transaction involving proceeds of the fraud on Qualcomm. In his plea agreement, Shokouhi admitted that he schemed with co-defendant Karim Arabi and others to hide both Arabi’s and Shokouhi’s involvement in Abreezio—the tech firm that they marketed to Qualcomm.
Arabi was a Qualcomm employee throughout the entire marketing period, and hiding his involvement in the firm and the development of its patented technology allowed Abreezio’s principals to claim that the company was an “angel-funded” outside firm while disguising its true connections to Qualcomm. In that regard, Shokouhi admitted Arabi was intimately involved in Abreezio’s formation, development, and marketing to Qualcomm, including choosing the “Abreezio” name. Shokouhi further admitted that he referred to Arabi by a different name in text messages with co-conspirators to obscure Arabi’s involvement in Abreezio. According to court documents, Qualcomm agreed to pay roughly $180 million for Abreezio—$150 million of which was paid in October 2015.
Like co-defendant Sanjiv Taneja, who recently pleaded guilty and admitted his own role in the fraud, Shokouhi acknowledged that he never actually met the purported creator of Abreezio’s core technologies, who is Arabi’s family member and was never involved in the company’s technical or strategic decision-making as far as Shokouhi knew.
Shokouhi further admitted that he and Arabi concealed Shokouhi’s involvement in Abreezio in part because Shokouhi had previously been terminated from Qualcomm because of a conflict-of-interest violation. As part of his plea agreement, Shokouhi agreed to forfeit over $16 million that he personally received from Qualcomm’s purchase of Abreezio, and to pay restitution.
This case is being prosecuted by Assistant U.S. Attorneys Nicholas W. Pilchak, Janaki G. Chopra and Eric R. Olah.
DEFENDANTS Case Number 22-CR-1152-BAS
Karim Arabi Age: 57 San Diego, CA
Sanjiv Taneja Age: 60 Cupertino, CA
Ali Akbar Shokouhi Age: 64 San Diego, CA
AGENCIES
Federal Bureau of Investigation
Internal Revenue Services, Criminal Investigation
United States Marshals Service
*The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Imperial County Dentist and Former Office Manager Plead Guilty in Multi-Million Dollar Medicare FraudRead the Press Release
SAN DIEGO – Dr. Javad Aghaloo, an Imperial County dentist, and Theresa Flores, his office manager, pleaded guilty in federal court yesterday, admitting that they conspired to defraud Medicare and cover it up.
Aghaloo entered a guilty plea to conspiring to commit health care fraud by billing Medicare for procedures that were not covered, not performed, or otherwise not necessary. As part of his plea, Aghaloo agreed to forfeit more than $1 million in property and pay restitution to Medicare in the amount of $8,476,466.23. Flores entered a guilty plea to obstructing a Medicare audit.
According to court records, Aghaloo and others recruited Medicare beneficiaries to get dental work done at one of Aghaloo’s offices. To recruit Medicare patients, Aghaloo and Flores marketed dental services to individuals in Imperial County as being covered by Medicare. Aghaloo and Flores knew this was untrue since Medicare does not cover dental services.
Once a Medicare beneficiary was in one of Aghaloo’s offices, Aghaloo and others performed some type of procedure (usually a tooth extraction) and submitted false claims to Medicare using the person’s Medicare beneficiary number. Since tooth extractions are not covered by Medicare, Aghaloo’s offices instead submitted false claims for procedures like bone grafts that were never performed.
Between March 1, 2016, and October 18, 2018, Aghaloo and Flores caused Aghaloo’s dental offices to submit over 7,000 false claims to Medicare, totaling over $18 million for which Aghaloo’s offices were paid $8,476,466.23 by Medicare.
To conceal the fraud, between April of 2017 and October of 2018, Flores and Rosas caused false documents to be submitted to Noridian Healthcare Solutions, LLC. (“NHS”), a Federal auditor for the Medicare program.
Sentencing is set for January 12, 2024, at 9:00 a.m. before U.S. District Judge Jinsook Ohta.
This case is being prosecuted by Assistant U.S. Attorney Christopher Alexander.
DEFENDANT Case Number 23cr0616-JO
Javad Aghaloo Age: 50 San Diego, CA
Theresa Flores Age: 45 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Commit Health Care Fraud, a felony, in violation of Title 18, United States Code, Section 371.
Maximum Penalty: Five years in prison and a fine of $250,000.
Obstructing a Federal Audit, a felony, in violation of Title 18, United States Code, Section 1516.
Maximum Penalty: Five years in prison and a fine of $250,000.
AGENCIES
Federal Bureau of Investigation.
U.S. Department of Health and Human Services, Office of Inspector General.
San Diego Resident Pleads Guilty to Distributing Fentanyl that Resulted in Teenager’s DeathRead the Press Release
SAN DIEGO – Jose Daniel Ramirez of San Diego pleaded guilty in federal court today to possession with intent to distribute pills laced with fentanyl that killed a 19-year-old Poway resident, referred to in court records as K.W.P., on January 3, 2023.
Ramirez admitted to selling the fentanyl pills, disguised as oxycodone, to K.W.P. and others. In a series of text messages, Ramirez agreed to sell “2 blues” to K.W.P. After receiving and consuming the pills, K.W.P. was found dead of a fentanyl overdose a few hours later. After learning of K.W.P.’s death, Ramirez changed his phone number, informed clients of his new number, and continued to sell fentanyl.
On February 8, 2023, law enforcement officers arrested Ramirez. Following Ramirez’s arrest, investigators secured a warrant and searched his residence. There they located two Glock handguns, over 250 rounds of various ammunition and approximately 2,600 blue pills containing fentanyl along with cocaine and other drugs. One of the handguns was fully loaded with a round of ammunition in the chamber.
“It is outrageous that this defendant continued to sell fentanyl even after learning of their customers’ deaths,” said acting U.S. Attorney Andrew Haden. “Fentanyl deaths resulting from the actions of profit-seeking drug dealers will continue to be zealously prosecuted.”
“Fentanyl kills indiscriminately, and the defendants’ callous and irresponsible disregard led to the tragic death of a teenager,” said Chad Plantz, special agent in charge for HSI San Diego. “Overdoses due to fentanyl have dramatically increased – this is unacceptable. I commend the work of the HSI special agents and our partners who work tirelessly every single day to stop preventable drug poisonings from taking so many lives too soon.”
“Since 2017, the San Diego Sheriff's Department has been a leader in investigating drug overdose death cases,” said San Diego County Sheriff Kelly Martinez. “The Sheriff's Department is dedicated to identifying and arresting fentanyl dealers who provide this deadly drug to our communities. During this investigation, Mr. Ramirez continued selling this dangerous drug, but we were able to stop him in the act of selling fentanyl to an 18-year-old at the time of his arrest. The actions of all involved likely saved the life of another teenager. We are proud of the collaborative effort of Sheriff's FAST Detective Morse and his federal partners with Homeland Security Investigations, Customs and Border Protection, the Drug Enforcement Administration, and the United States Attorney's Office. The Sheriff's Department will continue in these partnerships and target these dangerous drug dealers in our continued effort to combat this deadly epidemic.”
Ramirez is scheduled to be sentenced on January 3, 2024, at 9 a.m. before U.S. District Judge Ruth Bermudez Montenegro.
Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation into K.W.P.’s death. This case is the result of ongoing efforts by the U.S. Attorney’s Office, the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the San Diego Police Department, and the California Department of Health Care Services to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County.
This case is being prosecuted by Assistant U.S. Attorneys Sean Van Demark and Dylan M. Aste.
DEFENDANT Case Number 23cr00274-RBM
Jose Daniel Ramirez Age: 20 San Diego, CA
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 18, United States Code, Section 841(a)(1)
Maximum penalty: Twenty years in prison
AGENCY
Homeland Security Investigations
San Diego Sheriff
Drug Enforcement Administration
Former Union President Sentenced in Connection with $36,000 EmbezzlementRead the Press Release
NEWS RELEASE SUMMARY – September 27, 2023
SAN DIEGO – Felix Luciano, former President of Local 2805 chapter of the American Federation of Government Employees and former Department of Homeland Security officer, was sentenced in federal court today to four months in custody for filing a false report to conceal his embezzlement of thousands of dollars in union dues.
U.S. District Judge Jinsook Ohta also ordered Luciano to repay $36,000 to Local 2805 as money that he embezzled and pay a $10,000 fine. In imposing the sentence, Judge Ohta found that Luciano abused the trust of union members.
Local 2805 is a labor union which represents Department of Homeland Security, Immigration and Customs Enforcement employees in San Diego and Imperial Counties.
According to court records, from January of 2016 to December of 2018, Luciano used some of Local 2805’s money for a variety of personal expenses, including shopping, travel reimbursements, groceries, dining, dry cleaning, and paying for non-union accounts. He did this by writing checks from Local 2805’s checking account and using Local 2805’s debit and credit cards to directly pay personal expenses. As a result of Luciano’s actions, he caused a total loss of $36,000 to Local 2805.
As Local 2805’s president, Luciano was required to file an annual Form LM-3 financial report with the United States Department of Labor, Office of Labor-Management Standards. A Form LM-3 is a report containing information about the organization over the prior year, including assets, liabilities, and disbursements to officers. A Form LM-3 is sworn under penalty of perjury. In the LM-3 report he filed in 2018, Luciano underreported the amount of money that he received from Local 2805 and Local 2805’s cash balance. In doing so, Luciano attempted to hide his embezzlement from the Department of Labor, his fellow union officers, as well as the union membership whose dues were the source of the embezzled funds.
“When workers devote their hard-earned money to labor unions, they rightly expect the officers to be honest stewards of their dues,” said Acting U.S. Attorney Andrew R. Haden. “Felix Luciano abused the trust of the government employees represented by Local 2805 for his own personal benefit. We hope this criminal prosecution helps to hold Luciano accountable for his crimes and serves as a deterrent for others who might consider abusing the trust of union members.”
“While the vast majority of union officials do their work diligently and without incident, unfortunately criminal violations do occur. When they do, it is the union and its members that are the victims. Felix Luciano embezzled over $36,000 from AFGE Local 2805 that should have been used for its members’ benefit,” said Ed Oquendo, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “OLMS is committed to hold accountable anyone who unlawfully exploits their position for financial gain at the expense of their fellow union members.”
Carroll Harris, Postal Inspector in Charge of the Los Angeles Division, stated, “This investigation was an excellent example of a partnership between federal law enforcement agencies, working together in the pursuit of justice. I fully commend the hard work and countless hours put forth by all the law enforcement agencies involved.”
This case is being prosecuted by Assistant U.S. Attorney Christopher Alexander.
DEFENDANT Case Number 22cr2201-JO
Felix Luciano Age: 61 San Diego, CA
SUMMARY OF CHARGES
False Statement, a felony, in violation of Title 18, United States Code, Section 1001.
Maximum Penalty: Five years in prison and a fine of $250,000.
AGENCIES
Department of Labor, Office of Labor Management Standards
Department of Labor, Office of Inspector General
Department of Homeland Security, Office of Inspector General
United States Postal Inspection Service
Tijuana Man Sentenced to Federal Prison after 30-Year Identity Theft UncoveredRead the Press Release
NEWS RELEASE SUMMARY – September 25, 2023
SAN DIEGO – Abel Alonso Valdez-Vazquez was sentenced to 18 months in federal prison for misusing the identity of an American citizen for over 30 years in order to obtain identification documents and thousands of dollars in government benefits.
U.S. District Judge Anthony J. Battaglia ordered Valdez-Vazquez, 59, to pay $81,185.35 in restitution to the Social Security Administration. Valdez-Vazquez will likely be deported at the conclusion of his prison sentences.
Valdez-Vazquez was originally arrested on August 5, 2022, after driving a vehicle into the U.S. through the Otay Mesa Port of Entry that had three undocumented aliens concealed within it. Valdez-Vazquez was charged under the identity of G.P., a U.S. citizen, and pleaded guilty to his conduct as “G.P.” on January 19, 2023.
Soon thereafter, investigators learned that a second man claiming to be G.P. had complained that his identity had been stolen and used for decades by an unknown person. Investigators were able to confirm the true G.P.’s identity after confirming it with family members and birth records. It was more difficult to determine the identity of his impersonator, but ultimately his true name – Abel Alonso Valdez-Vazquez – was revealed and his status as a Mexican citizen without legal status in the United States was confirmed.
It was determined that Valdez-Vazquez had been using G.P.’s identity since at least December 1992, when he was first arrested (and later convicted) under G.P.’s identity.In his second plea agreement, entered on June 30, 2023, as Abel Alonso Valdez-Vazquez, he admitted that from 2007 through 2017, and 2019 through December 2021, he received Supplemental Security Income (SSI) from the Social Security Administration under G.P.’s identity. Valdez-Vazquez admitted that as a Mexican citizen without legal status in the United States, he was never eligible to receive any government benefits, and that all SSI paid to him was therefore money stolen from the United States. Valdez-Vazquez also admitted fraudulently applying for and receiving a California Driver’s License under G.P.’s identity, and then using that license to apply for entry into the United States on August 5, 2022, when he was arrested at the border.
“This defendant pulled off this fraudulent charade for more than 30 years, and he had many victims – from the man whose identity was stolen, to the courts, state and federal government, and the Social Security Administration,” said Acting United States Attorney Andrew R. Haden. “We hope this prosecution sends a message to those who commit fraud and identity theft: No matter how long it takes, you will be found out, and there will be consequences for your crimes.”
“The effects of stolen identities have long lasting effects that can take years and prove costly to resolve,” said Chad Plantz, special agent in charge for HSI San Diego. “Identity theft is not a victimless crime and HSI is committed to investigating those who think otherwise and helping victims.”
“Mr. Valdez-Vazquez knowingly committed identity theft, receiving Supplemental Security Income that he was not legally eligible for, which is a federal crime,” said Gail S. Ennis, Inspector General for the SSA. “This sentence holds him accountable for his deceitful actions. I thank the U.S. Attorney’s Office for prosecuting this case.”
These cases were prosecuted by Assistant U.S. Attorney Edward Chang and Special Assistant U.S. Attorney Jeffrey D. Hill.
DEFENDANTS Case Numbers 22cr1969-AJB & 23cr1304-AJB
Abel Alonso Valdez-Vazquez Age: 59 Tijuana, MX
SUMMARY OF CHARGES
Bringing in Unlawful Aliens Without Presentation – Title 8, U.S.C. Section 1324(a)(2)(B)(iii)
Maximum penalty: Ten years in prison and $250,000 fine
Receipt of Stolen Public Money – Title 18, U.S.C. Section 641
Maximum Penalty: Ten years in prison and $250,000 fine
Unlawful Representation – Title 8, U.S.C. Section 1325(a)(2)
Maximum Penalty: Six months in prison and $5,000 fine
AGENCIES
United States Homeland Security Investigations
Social Security Administration – Office of the Inspector General
Pasadena Man Sentenced for Sex Trafficking of a ChildRead the Press Release
NEWS RELEASE SUMMARY – September 20, 2023
SAN DIEGO – Daylan Lamont Camp of Pasadena was sentenced in federal court today to nine years in prison for sex trafficking a 14-year-old girl in the fall of 2020.
The defendant pleaded guilty on November 29, 2022, to one count of Conspiracy to Engage in Sex Trafficking of Children.
On November 16, 2020, the National Center for Missing and Exploited Children (NCMEC) contacted Homeland Security Investigations (HSI) with information related to a 14-year-old girl with an active online commercial sex advertisement located in San Diego. NCMEC conveyed that the girl had been reported as a runaway by Los Angeles County officials, and that between August and November 2020, NCMEC had identified multiple commercial sex advertisements on various internet-based websites with her image throughout Southern California, including in Los Angeles, San Bernardino and San Diego.
That same day, HSI, working with the San Diego Human Trafficking Task Force, located an advertisement for the girl offering commercial sex in San Diego. An undercover operation was conducted that ultimately led to the recovery of both the girl and an adult woman, who was also engaging in commercial sex at the hotel. The girl’s cell phone was searched, and HSI located numerous conversations between her and the defendant about commercial sex work. During these conversations, the defendant referred to the 14-year-old as “baby hoe.”
In his plea, Camp admitted that he communicated with an adult female about having the 14-year-old engage in commercial sex acts. Specifically, Camp admitted that he and the adult female agreed to obtain and maintain the minor, who they knew was under 18 years of age, for the minor to engage in commercial sex acts. To achieve their goal, Camp and the adult female obtained hotel rooms for the minor and arranged for her to travel to San Diego, where the sex acts were slated to occur.
To that end, on or about November 15, 2020, Camp and the adult female arranged for the minor to travel by bus from the Los Angeles area to San Diego for the minor to engage in commercial sex acts. The defendant then posted commercial sex advertisements for the minor. The minor traveled to San Diego and engaged in commercial sex acts and provide the proceeds of these acts to the defendant.
“Sex trafficking is a reprehensible crime that has traumatic consequences for children, including long-lasting physical and psychological harm,” said Acting U.S. Attorney Andrew Haden. “We will do everything we can to seek justice for trafficking victims.”
“HSI is committed to aggressively investigating the heinous criminals that knowingly and willingly exploit children and victims,” said Chad Plantz, special agent in charge for HSI San Diego. “In addition to investigating and arresting these predators, HSI utilizes a victim-centered approach to ensure the physical and mental well-being of the victims that are impacted by these crimes.”
This case is being prosecuted by Assistant U.S. Attorneys Andrew Sherwood and Katherine McGrath.
DEFENDANTS Case Number 22cr748-CAB
Daylan Lamont Camp Age: 28 Pasadena, CA
SUMMARY OF CHARGES
Conspiracy to Engage in Sex Trafficking of Children – Title 18, U.S.C., Section 1594(c)
Maximum penalty: Life in prison and $250,000 fine
AGENCY
Homeland Security Investigations
San Diego Human Trafficking Task Force
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section. Formed in 2019, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.
Teacher’s Aide and Youth Hockey Coach Sentenced to More Than 15 Years for Distributing Sexually Explicit Images of ChildrenRead the Press Release
NEWS RELEASE SUMMARY – September 19, 2023
SAN DIEGO – Daniel Zachary Dasko of Carlsbad, a former teacher’s aide and youth hockey coach, was sentenced in federal court today to 188 months in prison for sending sexually explicit images of children to others online.
Dasko, who is out on bond, was ordered to report to prison on October 3. Dasko pleaded guilty on April 11, 2023, to one count of Distribution of Images of Minors Engaged in Sexually Explicit Conduct.
Dasko’s distribution of images and videos of children being sexually abused was discovered during the course of another investigation into similar activity. In July 2021, the Philadelphia Division of the FBI received a cyber tip from the National Center for Missing and Exploited Children regarding a man uploading child pornography. The subject was identified as a teacher in the Philadelphia area.
FBI Philadelphia executed a search warrant on the Philadelphia man’s residence. A review of his iPhone revealed numerous conversations regarding child pornography using a social media application that allowed the user to produce and trade images created by baiting minor victims to send nude photos or videos, or to go live online and be screen-recorded. The Philadelphia subject and other coconspirators would first pose as females on social media sites in order to chat with the victims, and then transfer their communications to a closed social media application that allowed the exchange of these nude photos and videos.
During this investigation, FBI agents determined that Dasko communicated with the Philadelphia man and his other co-conspirators under the name “Mr. Pickles.” From October 3, 2020, to October 3, 2021, Dasko exchanged over 3,671 messages with the Philadelphia man, including numerous images and videos depicting children being sexually abused.
The vast majority of these messages were conversations about sexually exploiting children Dasko and his co-conspirators knew or met online. The Philadelphia man and Dasko discussed at length and in graphic, disturbing detail, their attraction to young boys and their attempts to catfish them. Catfishing – one of the most common internet scams targeting young people - happens when a person poses as someone else in an online relationship.
Dasko even went so far as to forward social media contact information of children that he knew to his co-conspirators, so the children could be catfished online. This scheme achieved results. For example, Dasko distributed a video of a 13-year-old boy masturbating. This victim had been catfished by one of Dasko’s co-conspirators.
“This defendant is a sexual predator who used his position as a teacher and coach to inform his sexual interests and to target kids for online abuse,” said Acting U.S. Attorney Andrew Haden. “His job was to educate and protect children. Instead, he exploited them. We will do everything in our power protect children and hold offenders accountable.”
“Crimes involving sexually exploiting children are especially disgusting and disturbing,” said FBI San Diego Special Agent in Charge Stacey Moy. “I'm proud of the hard work conducted by our agents and law enforcement partners to bring these criminals to justice for their abhorrent behavior.”
This case is being prosecuted by Assistant U.S. Attorneys Mandy Griffith and Andrew Sherwood.
DEFENDANTS Case Number 22cr1715-LL
Daniel Dasko Age: 32 Carlsbad, CA
SUMMARY OF CHARGES
Distribution of Images of Minors Engaged in Sexually Explicit Conduct – Title 18, U.S.C., Section 2252(a)(2).
Maximum penalty: Twenty years in prison and $250,000 fine
AGENCY
Federal Bureau of Investigation
Son of Joaquin Guzman Loera aka “El Chapo” Arraigned on Federal Criminal Charges Following his Extradition from Mexico to the United States for International Drug TraffickingRead the Press Release
Ovidio Guzman Lopez, 33, of Culiacan, Mexico, was arraigned in federal court in Chicago today after his extradition from Mexico to the United States on Sept. 15. In January, Guzman Lopez was arrested in Mexico pursuant to a U.S. request for his provisional arrest with a view toward extradition.
Guzman Lopez, aka El Raton and Raton Nuevo, is charged in the Northern District of Illinois with five counts in a nine-count 12th superseding indictment alleging that from around May 2008 and continuing to at least Oct. 21, 2021, he engaged in a drug trafficking Continuing Criminal Enterprise (CCE), along with additional drug, money laundering, and firearms charges. Guzman Lopez is charged with conspiring to distribute cocaine, heroin, methamphetamine, and marijuana from Mexico and elsewhere for importation into the United States.
According to court documents, the charges stem from a decades-long, collaborative, multi-district effort between the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS), based in Washington, D.C., the Northern District of Illinois, the Southern District of California, and their law enforcement partners.
Under the terms of the U.S.-Mexico extradition treaty, the United States had up to 60 days to present a fully supported request, one in compliance with the terms of the treaty. The United States submitted that request in February 2023. A Mexican court reviewed the U.S. request and last month favorably recommended his extradition. The Foreign Ministry reviewed the decision and similarly concluded that Guzman Lopez should be extradited to the United States. Guzman Lopez was subsequently extradited to the United States on Sept. 15. He was arraigned on the charges earlier today before U.S. District Judge Sharon Johnson Coleman of the U.S. District Court for the Northern District of Illinois and pleaded not guilty. He waived his right to a detention hearing and was ordered to remain detained without bond.
Guzman Lopez is one of the sons of Joaquin Guzman Loera, aka El Chapo, who was convicted by a jury in the Eastern District of New York for his role as the leader of the Sinaloa Cartel. Following Guzman Loera’s arrest in January 2016 and extradition to the United States in January 2017, Guzman Lopez and his three brothers, Ivan Archivaldo Guzman Salazar, Jesus Alfredo Guzman Salazar, and Joaquin Guzman Lopez, aka “the Chapitos,” who are also charged in the indictment, allegedly assumed their father’s former role as leaders of the Sinaloa Cartel, along with Zambada Garcia and Damaso Lopez Nunez, aka Licenciado. The Chapitos subsequently amassed greater control over the Sinaloa Cartel by allegedly threatening and causing violence against Lopez Nunez, his family, and his associates and, as a result, became principal leaders and drug traffickers within the Sinaloa Cartel.
Guzman Lopez was also indicted in the Southern District of New York on charges of continuing criminal enterprise, fentanyl importation conspiracy, fentanyl distribution conspiracy, possession of machineguns and destructive devices, conspiracy to possess machineguns and destructive devices, and conspiracy to commit money laundering.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, Acting U.S. Attorney Andrew R. Haden for the Southern District of California, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI), and U.S. Drug Enforcement Administration (DEA) Administrator Anne Milgram made the announcement.
This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Forces (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state, and local law enforcement agencies.
The FBI Washington, San Diego, and El Paso Field Offices, HSI Nogales Office, DEA’s Chicago and San Diego Divisions, and IRS Criminal Investigation’s Chicago Office investigated the case.
The Justice Department’s Office of International Affairs handled the extradition, in collaboration with the U.S. Marshals Service. The Office of Enforcement Operations also provided significant assistance in the case.
The Justice Department thanks the Government of Mexico, including the Mexican Foreign Ministry and the Mexican Attorney General’s Office. Earlier today, U.S. Attorney General Merrick B. Garland spoke by phone with Mexico’s Attorney General Alejandro Gertz Manero to express his gratitude to Attorney General Gertz and the Government of Mexico for successfully extraditing Guzman Lopez.
Trial Attorney Kirk Handrich of NDDS, Assistant U.S. Attorneys Andrew Erskine and Erika Csicsila for the Northern District of Illinois, and Assistant U.S. Attorney Matthew Sutton for the Southern District of California are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Chief Engineer Sentenced to More Than a Year in Prison for Obstruction of Justice and Oil Dumping OffensesRead the Press Release
Chief engineer Denys Korotkiy of the vessel Donald was sentenced on Sept. 15 to serve twelve months and a day in prison after being convicted of conspiracy to obstruct justice, obstruction of justice and failure to maintain an accurate oil record book. U.S. District Court Judge Todd W. Robinson for the Southern District of California sentenced Korotkiy.
Trial evidence showed that oily bilge water – typically containing oil contamination from cleaning and operating a vessel’s machinery – was illegally dumped from the Donald, without being legally recorded, directly into the ocean through the vessel’s sewage tank and not properly processed through required pollution prevention equipment. Korotkiy made false and fictitious entries in the oil record book claiming oily bilge had been transferred from the engine room bilge wells to the bilge holding tank. He also conspired with others to obstruct the U.S. Coast Guard from inspecting and investigating the mishandling of oily bilge water on the Donald.
Vessel operating company Interunity Management (Deutschland) GMBH previously pleaded guilty for maintaining false and incomplete records relating to the discharge of oily bilge water and was ordered to pay a total of $1.25 million, including more than $312,000 to benefit marine and coastal natural resources in or near the Tijuana River National Estuarine Research Reserve.
Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division and Acting U.S. Attorney Andrew R. Haden for the Southern District of California made the announcement.
The U.S. Coast Guard Sector San Diego and the U.S. Coast Guard Investigative Service investigated the case.
Senior Trial Attorney Stephen Da Ponte of the Environment and Natural Resources Division's Environmental Crimes Section and Assistant U.S. Attorney Melanie K. Pierson for the Southern District of California are prosecuting the case.
Suspected Leader of Significant Human Smuggling Organization Extradited to San DiegoRead the Press Release
NEWS RELEASE SUMMARY – September 12, 2023
SAN DIEGO – Luis Antonio Mendez-Brahan of Tijuana appeared in federal court today following his extradition from Mexico to face charges stemming from his alleged role as the leader of a prolific human-smuggling organization with three of his children.
Mendez-Brahan was indicted by a federal grand jury in 2019 on one count of conspiring to bring unlawful aliens into the United States, transport unlawful aliens within the United States, and conduct financial transactions with the proceeds of specified unlawful activities. Mendez Brahan was also charged with five counts of bringing aliens into the United States for financial gain.
Three of Mendez-Brahan’s children - Christopher Mendez, Wendy Monserrath Mendez, and Nancy Jacqueline Suarez - already admitted their involvement with their father in the human smuggling conspiracy and were sentenced in 2021.
According to the indictment, Mendez-Brahan was the leader of a smuggling organization for almost a decade and was responsible for smuggling hundreds of undocumented migrants into the United States. The Mendez-Brahan organization allegedly operated in an area east of the Tecate Port of Entry and used an ever-changing cadre of spotters, guides, and drivers to facilitate the smuggling organization’s criminal activities. The indictment alleges that Mendez-Brahan charged between $6,000 and $8,000 for each migrant he arranged to be smuggled into the United States.
According to the indictment, Mendez-Brahan used money service businesses such as Western Union and Money Gram to move money from the U.S. to Mexico. Border Patrol investigators tracked financial transactions conducted by Mendez-Brahan’s children in the United States to money service businesses located in Tijuana and ultimately, to Mendez-Brahan himself.
This case is the result of ongoing efforts by the United States Border Patrol – San Diego Sector, with support from Joint Task Force Alpha (“JTFA”), to dismantle active transnational criminal organizations involved in human smuggling along the U.S.–Mexico border in the Southern District of California. JTFA was created to investigate and prosecute precisely these types of international networks alleged to be responsible for dangerous and prolific human smuggling activities that exploit and victimize migrants.
This case is being prosecuted by Assistant U.S. Attorneys Victor P. White and David Fawcett. The Justice Department’s Office of International Affairs worked with the Mexican Attorney General’s Office to secure the arrest and extradition of Mendez-Brahan.
DEFENDANT Case Number 19cr1570-JLS
Luis Antonio Mendez-Brahan Age: 55 Tijuana, Baja California, Mexico
Christopher Mendez Age: 28 Wasco, California
Wendy Monserrath Mendez Age: 24 Wasco, California
Nancy Jacqueline Suarez Age: 31 Madera, California
SUMMARY OF CHARGES
Count 1 (all defendants): Conspiracy to Bring in Certain Aliens for Financial Gain, to Transport Certain Aliens, and to Conduct Financial Transactions with Proceeds of Specified Unlawful Activity; and Aiding and Abetting – Title 18, U.S.C., §§ 371 and 2. Maximum penalty: Five years in prison
Counts 2–6 (Luis Antonio Mendez-Brahan): Bringing in Certain Aliens for Financial Gain; and Aiding and Abetting – Title 8, U.S.C., § 1324(a)(2)(B)(ii) and Title 18, U.S.C., § 2.Minimum Penalty: Three years in prison (per count) and Five years if convicted of three counts
Maximum penalty: Ten years in prison
AGENCY
United States Border Patrol San Diego Sector/El Cajon Station Intelligence Team
United States Border Patrol BORTAC – Special Operations Division
Customs and Border Protection – Mexico
Department of Justice’s Office of International Affairs
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
The U.S. Attorney’s Office for the Southern District of California is part of Joint Task Force Alpha (JTFA), which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico and the Northern Triangle countries of Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. JTFA consists of federal prosecutors and attorneys from U.S. Attorney’s Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from DHS’s Immigration and Customs Enforcement, Customs and Border Protection, and Border Patrol. The FBI and the Drug Enforcement Administration are also part of the Task Force.
Multiple Foreign Nationals Charged in Connection with Trickbot Malware and Conti Ransomware ConspiraciesRead the Press Release
WASHINGTON - Three indictments in three different federal jurisdictions have been unsealed charging multiple Russian cybercrime actors involved in the Trickbot malware and Conti ransomware schemes.
According to court documents and public reporting, Trickbot, which was taken down in 2022, was a suite of malware tools designed to steal money and facilitate the installation of ransomware. Hospitals, schools, and businesses were among the millions of Trickbot victims who suffered tens of millions of dollars in losses. While active, Trickbot malware, which acted as an initial intrusion vector into victim computer systems, was used to support various ransomware variants, including Conti. Conti was a ransomware variant used to attack more than 900 victims worldwide, including victims in approximately 47 states, the District of Columbia, Puerto Rico, and approximately 31 foreign countries. According to the FBI, in 2021, Conti ransomware was used to attack more critical infrastructure victims than any other ransomware variant.
“The Justice Department has taken action against individuals we allege developed and deployed a dangerous malware scheme used in cyberattacks on American school districts, local governments, and financial institutions,” said Attorney General Merrick B. Garland. “Separately, we have also taken action against individuals we allege are behind one of the most prolific ransomware variants used in cyberattacks across the United States, including attacks on local police departments and emergency medical services. These actions should serve as a warning to cybercriminals who target America’s critical infrastructure that they cannot hide from the United States Department of Justice.”
“Today’s announcement shows our ongoing commitment to bringing the most heinous cyber criminals to justice – those who have devoted themselves to inflicting harm on the American public, our hospitals, schools, and businesses,” said FBI Director Christopher Wray. “Cyber criminals know that we will use every lawful tool at our disposal to identify them, tirelessly pursue them, and disrupt their criminal activity. We, alongside our federal and international partners, will continue to impose costs through joint operations no matter where these criminals may attempt to hide.”
“The defendants charged in these three indictments across three different jurisdictions allegedly used their cyber knowledge and capabilities to victimize people and businesses around the world without regard for the damage they caused,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “These indictments should serve as a reminder that no matter a cybercriminal’s location, we will identify and pursue them by doing everything in our power to ensure they face the consequences of their actions.”
“Conti ransomware was used to exploit our financial systems and target hundreds of innocent victims,” said Special Agent in Charge William Mancino of the U.S. Secret Service’s Criminal Investigative Division. “The Secret Service will continue to work with our local, state, and federal law enforcement partners to investigate cybercriminals and bring offenders to justice.”
As detailed below, a federal grand jury in the Northern District of Ohio returned an indictment charging Maksim Galochkin, aka Bentley; Maksim Rudenskiy, aka Buza; Mikhail Mikhailovich Tsarev, aka Mango; Andrey Yuryevich Zhuykov, aka Defender; Dmitry Putilin, aka Grad and Staff; Sergey Loguntsov, aka Begemot and Zulas; Max Mikhaylov, aka Baget; Valentin Karyagin, aka Globus; and Maksim Khaliullin, aka Maxfax, Maxhax, and Kagas, all Russian nationals, with conspiring to use the Trickbot malware to steal money and personal and confidential information from unsuspecting victims, including businesses and financial institutions located in the United States and around the world, beginning in November 2015.
A federal grand jury in the Middle District of Tennessee returned an indictment charging Galochkin, Rudenskiy, Tsarev, and Zhuykov with conspiring to use Conti ransomware to attack businesses, nonprofits, and governments in the United States beginning in 2020 and continuing through June 2022.
A federal grand jury in the Southern District of California returned an indictment charging Galochkin in connection with the Conti ransomware attack on Scripps Health on May 1, 2021.
Northern District of Ohio
The indictment returned in the Northern District of Ohio charged all nine defendants for their alleged roles in developing, deploying, managing, and profiting from the malware known as Trickbot. Trickbot was a sophisticated, modular, multi-functional suite of malware tools which (a) infected victims’ computers with malware designed to capture victims’ online banking login credentials; (b) obtained and harvested other personal identification information, including credit cards, emails, passwords, dates of birth, social security numbers, and addresses; (c) infected other computers connected to the victim computer; (d) used the captured login credentials to fraudulently gain unauthorized access to victims’ online bank accounts at financial institutions; (e) stole funds from victims’ bank accounts and laundered those funds using U.S. and foreign beneficiary bank accounts provided and controlled by the defendants and co-conspirators; and (f) installed ransomware on victim computers.
“As alleged in the indictment, Trickbot infected millions of computers worldwide, including those used by hospitals, schools, and businesses,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Today’s announcement demonstrates that these dangerous cybercriminals are not anonymous, as they once believed. The indictments unsealed today show the resolve of the international community to work together to bring cybercriminals to justice. We will continue to use all resources at our disposal to stop cybercrime.”
Each defendant is charged with one count of conspiracy to violate the Computer Fraud and Abuse Act, one count of wire fraud conspiracy, and one count of conspiracy to launder the proceeds of the scheme. The indictment also included an enhancement for falsely registering domains. If convicted, each defendant faces a maximum penalty of 62 years in prison.
Trickbot malware developers Alla Witte and Vladimir Dunaev were previously indicted and apprehended. Witte, a Latvian national pleaded guilty to conspiracy to commit computer fraud and was sentenced to 32 months in June 2023. Dunaev, a Russian national, currently is in custody and pending trial in Cleveland.
Middle District of Tennessee
The Middle District of Tennessee indictment charges that the individuals behind Conti ransomware, including Galochkin, Rudenskiy, Tsarev, and Zhuykov, conspired to use Conti to attack hundreds of victims. Conti’s victims included hospital systems, local governments, and foreign governments. Conti conspirators allegedly extorted funds from victims in the Middle District of Tennessee and encrypted the computer systems of a local sheriff’s department, a local police department, and local emergency medical services, among others. Ransom notes left on Conti victims’ computer systems typically boasted “if you don’t [know Conti] – just ‘google it.’”
“The conspirators who developed and deployed Conti ransomware victimized businesses, governments, and non-profits around the world, including a sheriff’s office and an emergency medical service in Tennessee,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “We will continue to use the full power of this office to ensure that hackers can no longer hide behind their computer screens and to hold them accountable.”
Galochkin was a “crypter” for Conti, modifying the ransomware so that it would not be detected by anti-virus programs; Rudenskiy was a developer who supervised other Conti developers; Tsarev was a manager of other Conti conspirators; and Zhuykov was a systems administrator who managed users of Conti infrastructure, organized and paid for infrastructure and tools, and assisted in problem solving infrastructure-related issues.
Galochkin, Rudenskiy, Tsarev, and Zhuykov are each charged with one count of conspiracy to violate the Computer Fraud and Abuse Act and one count wire fraud conspiracy. If convicted, each defendant faces a maximum penalty of 25 years in prison.
Southern District of California
As alleged in the Southern District of California indictment, Galochkin caused the transmission of the Conti malware and impaired the medical examination, diagnosis, treatment, and care of one or more individuals.
Galochkin is charged with three counts of computer hacking. If convicted, he faces a maximum penalty of 20 years in prison.
“The indictment alleges a callous disregard for the medical care and the personal information of residents of the Southern District of California,” said Acting U.S. Attorney Andrew R. Haden for the Southern District of California. “This office is committed to protecting victims of cybercrime and holding perpetrators accountable.”
The FBI Cleveland Field Office is leading the investigation into Trickbot malware.
Assistant U.S. Attorneys Daniel Riedl and Duncan Brown for the Northern District of Ohio and Senior Counsel Candina Heath of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the Trickbot malware case.
The FBI San Diego, Memphis, and El Paso Field Offices, with U.S. Secret Service, are leading the investigation into Conti ransomware. The U.S. Attorney’s Office for the Western District of Texas provided significant assistance.
Assistant U.S. Attorney Taylor J. Phillips for the Middle District of Tennessee, Assistant U.S. Attorneys Jonathan Shapiro and Kareem Salem for the Southern District of California, and Trial Attorney Sonia V. Jimenez and Senior Counsel Ryan K.J. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the Conti ransomware cases.
The Justice Department’s National Security Division provided significant assistance in the Conti ransomware and Trickbot malware investigations.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Northern District of Ohio indictment
Middle District of Tennessee indictment
Southern District of California indictment
Multiple Foreign Nationals Charged in Connection with Trickbot Malware and Conti Ransomware ConspiraciesRead the Press Release
Three indictments in three different federal jurisdictions have been unsealed charging multiple Russian cybercrime actors involved in the Trickbot malware and Conti ransomware schemes.
According to court documents and public reporting, Trickbot, which was taken down in 2022, was a suite of malware tools designed to steal money and facilitate the installation of ransomware. Hospitals, schools, and businesses were among the millions of Trickbot victims who suffered tens of millions of dollars in losses. While active, Trickbot malware, which acted as an initial intrusion vector into victim computer systems, was used to support various ransomware variants, including Conti. Conti was a ransomware variant used to attack more than 900 victims worldwide, including victims in approximately 47 states, the District of Columbia, Puerto Rico, and approximately 31 foreign countries. According to the FBI, in 2021, Conti ransomware was used to attack more critical infrastructure victims than any other ransomware variant.
“The Justice Department has taken action against individuals we allege developed and deployed a dangerous malware scheme used in cyberattacks on American school districts, local governments, and financial institutions,” said Attorney General Merrick B. Garland. “Separately, we have also taken action against individuals we allege are behind one of the most prolific ransomware variants used in cyberattacks across the United States, including attacks on local police departments and emergency medical services. These actions should serve as a warning to cybercriminals who target America’s critical infrastructure that they cannot hide from the United States Department of Justice.”
“Today’s announcement shows our ongoing commitment to bringing the most heinous cyber criminals to justice – those who have devoted themselves to inflicting harm on the American public, our hospitals, schools, and businesses,” said FBI Director Christopher Wray. “Cyber criminals know that we will use every lawful tool at our disposal to identify them, tirelessly pursue them, and disrupt their criminal activity. We, alongside our federal and international partners, will continue to impose costs through joint operations no matter where these criminals may attempt to hide.”
“The defendants charged in these three indictments across three different jurisdictions allegedly used their cyber knowledge and capabilities to victimize people and businesses around the world without regard for the damage they caused,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “These indictments should serve as a reminder that no matter a cybercriminal’s location, we will identify and pursue them by doing everything in our power to ensure they face the consequences of their actions.”
“Conti ransomware was used to exploit our financial systems and target hundreds of innocent victims,” said Special Agent in Charge William Mancino of the U.S. Secret Service’s Criminal Investigative Division. “The Secret Service will continue to work with our local, state, and federal law enforcement partners to investigate cybercriminals and bring offenders to justice.”
As detailed below, a federal grand jury in the Northern District of Ohio returned an indictment charging Maksim Galochkin, aka Bentley; Maksim Rudenskiy, aka Buza; Mikhail Mikhailovich Tsarev, aka Mango; Andrey Yuryevich Zhuykov, aka Defender; Dmitry Putilin, aka Grad and Staff; Sergey Loguntsov, aka Begemot and Zulas; Max Mikhaylov, aka Baget; Valentin Karyagin, aka Globus; and Maksim Khaliullin, aka Maxfax, Maxhax, and Kagas, all Russian nationals, with conspiring to use the Trickbot malware to steal money and personal and confidential information from unsuspecting victims, including businesses and financial institutions located in the United States and around the world, beginning in November 2015.
A federal grand jury in the Middle District of Tennessee returned an indictment charging Galochkin, Rudenskiy, Tsarev, and Zhuykov with conspiring to use Conti ransomware to attack businesses, nonprofits, and governments in the United States beginning in 2020 and continuing through June 2022.
A federal grand jury in the Southern District of California returned an indictment charging Galochkin in connection with the Conti ransomware attack on Scripps Health on May 1, 2021.
Northern District of Ohio
The indictment returned in the Northern District of Ohio charged all nine defendants for their alleged roles in developing, deploying, managing, and profiting from the malware known as Trickbot. Trickbot was a sophisticated, modular, multi-functional suite of malware tools which (a) infected victims’ computers with malware designed to capture victims’ online banking login credentials; (b) obtained and harvested other personal identification information, including credit cards, emails, passwords, dates of birth, social security numbers, and addresses; (c) infected other computers connected to the victim computer; (d) used the captured login credentials to fraudulently gain unauthorized access to victims’ online bank accounts at financial institutions; (e) stole funds from victims’ bank accounts and laundered those funds using U.S. and foreign beneficiary bank accounts provided and controlled by the defendants and co-conspirators; and (f) installed ransomware on victim computers.
“As alleged in the indictment, Trickbot infected millions of computers worldwide, including those used by hospitals, schools, and businesses,” said U.S. Attorney Rebecca C. Lutzko for the Northern District of Ohio. “Today’s announcement demonstrates that these dangerous cybercriminals are not anonymous, as they once believed. The indictments unsealed today show the resolve of the international community to work together to bring cybercriminals to justice. We will continue to use all resources at our disposal to stop cybercrime.”
Each defendant is charged with one count of conspiracy to violate the Computer Fraud and Abuse Act, one count of wire fraud conspiracy, and one count of conspiracy to launder the proceeds of the scheme. The indictment also included an enhancement for falsely registering domains. If convicted, each defendant faces a maximum penalty of 62 years in prison.
Trickbot malware developers Alla Witte and Vladimir Dunaev were previously indicted and apprehended. Witte, a Latvian national pleaded guilty to conspiracy to commit computer fraud and was sentenced to 32 months in June 2023. Dunaev, a Russian national, currently is in custody and pending trial in Cleveland.
Middle District of Tennessee
The Middle District of Tennessee indictment charges that the individuals behind Conti ransomware, including Galochkin, Rudenskiy, Tsarev, and Zhuykov, conspired to use Conti to attack hundreds of victims. Conti’s victims included hospital systems, local governments, and foreign governments. Conti conspirators allegedly extorted funds from victims in the Middle District of Tennessee and encrypted the computer systems of a local sheriff’s department, a local police department, and local emergency medical services, among others. Ransom notes left on Conti victims’ computer systems typically boasted “if you don’t [know Conti] – just ‘google it.’”
“The conspirators who developed and deployed Conti ransomware victimized businesses, governments, and non-profits around the world, including a sheriff’s office and an emergency medical service in Tennessee,” said U.S. Attorney Henry C. Leventis for the Middle District of Tennessee. “We will continue to use the full power of this office to ensure that hackers can no longer hide behind their computer screens and to hold them accountable.”
Galochkin was a “crypter” for Conti, modifying the ransomware so that it would not be detected by anti-virus programs; Rudenskiy was a developer who supervised other Conti developers; Tsarev was a manager of other Conti conspirators; and Zhuykov was a systems administrator who managed users of Conti infrastructure, organized and paid for infrastructure and tools, and assisted in problem solving infrastructure-related issues.
Galochkin, Rudenskiy, Tsarev, and Zhuykov are each charged with one count of conspiracy to violate the Computer Fraud and Abuse Act and one count wire fraud conspiracy. If convicted, each defendant faces a maximum penalty of 25 years in prison.
Southern District of California
As alleged in the Southern District of California indictment, Galochkin caused the transmission of the Conti malware and impaired the medical examination, diagnosis, treatment, and care of one or more individuals.
Galochkin is charged with three counts of computer hacking. If convicted, he faces a maximum penalty of 20 years in prison.
“The indictment alleges a callous disregard for the medical care and the personal information of residents of the Southern District of California,” said Acting U.S. Attorney Andrew R. Haden for the Southern District of California. “This office is committed to protecting victims of cybercrime and holding perpetrators accountable.”
The FBI Cleveland Field Office is leading the investigation into Trickbot malware.
Assistant U.S. Attorneys Daniel Riedl and Duncan Brown for the Northern District of Ohio and Senior Counsel Candina Heath of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the Trickbot malware case.
The FBI San Diego, Memphis, and El Paso Field Offices, with U.S. Secret Service, are leading the investigation into Conti ransomware. The U.S. Attorney’s Office for the Western District of Texas provided significant assistance.
Assistant U.S. Attorney Taylor J. Phillips for the Middle District of Tennessee, Assistant U.S. Attorneys Jonathan Shapiro and Kareem Salem for the Southern District of California, and Trial Attorney Sonia V. Jimenez and Senior Counsel Ryan K.J. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the Conti ransomware cases.
The Justice Department’s National Security Division provided significant assistance in the Conti ransomware and Trickbot malware investigations.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Northern District of Ohio indictment Middle District of Tennessee indictment Southern District of California indictmentU.S. Postal Service Employee Charged with Assaulting a Supervisor at Postal Facility in Carmel Mountain RanchRead the Press Release
NEWS RELEASE SUMMARY – September 1, 2023
SAN DIEGO – Edwin Cuadrado, Jr., a United States Postal Service (USPS) employee, was arrested and charged in a federal criminal complaint with stabbing a supervisor on August 25 at a mail facility in Carmel Mountain Ranch.
At a hearing today in federal court, U.S. Magistrate Judge William V. Gallo ordered Cuadrado held without bond after the government argued he is a flight risk and danger to the community. A preliminary hearing is scheduled for September 12 at 9:30 before Judge Gallo.
The criminal complaint alleges that Cuadrado used a knife to stab a supervisor in the back of the head.
According to the criminal complaint, Cuadrado first engaged in a verbal and physical altercation with one of his USPS supervisors at a nearby gas station late in the afternoon on August 25. Shortly thereafter, Cuadrado drove his USPS vehicle into the main employee parking lot of the USPS mail processing and distribution facility located at 11251 Rancho Carmel Drive. While in the parking lot of that facility, three different supervisory USPS employees attempted to speak with Cuadrado regarding the recent altercation. Cuadrado responded by brandishing a knife and stabbing one of the supervisors before leaving the scene. Responding paramedics treated the wound to the back of the supervisor’s head before that supervisor was taken to a hospital for further treatment.
Cuadrado remained at large until he was arrested by investigators on the morning of August 30.
DEFENDANT Case Number 23-MJ-3140
Edwin Cuadrado Jr. Age: 37 San Diego, CA
SUMMARY OF CHARGES
8 U.S.C. § 111(a)(1) – Assault on a Federal Employee or Officer
Maximum penalty: Five years in prison; $250,000 fine.
8 U.S.C. § 111(a)(1) and (b) – Assault on a Federal Employee or Officer Inflicting Bodily Injury
Maximum penalty: Twenty years in prison; $250,000 fine.
AGENCY
United States Postal Inspection Service
San Diego Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Sea Cucumber Smugglers Plead Guilty to Illegal Trafficking in WildlifeRead the Press Release
NEWS RELEASE SUMMARY – August 30, 2023
SAN DIEGO – Zunyu Zhao (also known as Kathy Zhao) and Xionwei Xiao (also known as Luis Xiao) pleaded guilty in federal court this week to a two-count indictment charging them with conspiracy and illegal importation of sea cucumbers.
According to the indictment and plea agreement, starting on May 9, 2017, and through February 10, 2019, Zhao and Xiao conspired to illegally import Isostichopus Fuscus sea cucumbers, a species protected under Appendix III of the Convention on International Trade in Endangered Species, without the appropriate permits and documentation.
In May 2017, Zhao was stopped at the Calexico Port of Entry, attempting to smuggle 11.50 kg of Isostichopus Fuscus sea cucumbers. In February 2019, Zhao was stopped once again at the Calexico Port of Entry with 2 kg of undeclared Isostichopus Fuscus sea cucumbers. Between 2017 and 2019, Zhao and Xiao messaged each other with texts and images of other transactions in their illegal Isostichopus Fuscus sea cucumber importation conspiracy, as Zhao confirmed for Xiao each shipment that she smuggled into the United States.
On May 23, 2023, a Grand Jury sitting in San Diego issued a sealed indictment against both Zhao and Xiao. On June 9, 2023, Xiao was arrested at the U.S. border, and Zhao was arrested four days later.
The parties agreed that the fair market value of Isostichopus Fuscus sea cucumbers is $435/kg, and the total value of the sea cucumbers trafficked during the conspiracy was $10,222.50. The defendants also agreed to pay restitution to the Procuraduria Federal de Proteccion al Ambiente, the Mexican governmental entity charged with protection of the environment.
Acting United States Attorney Andrew R. Haden stated, “This office is committed to upholding the twin pillars of marine biodiversity and conservation. Criminals considering poaching protected species should be aware that this office will diligently investigate, thoroughly prosecute, and seek restitution no matter the species.”
United States Fish and Wildlife Service Special-Agent-in-Charge Manisa Kung commented, “One of the highest priorities of the U.S. Fish and Wildlife Service Office of Law Enforcement is to investigate individuals involved in the unlawful commercial trafficking and smuggling of wildlife here and around the world.”
Xiao is scheduled to be sentenced on September 29, 2023, at 10:30 a.m. before U.S. District Judge Todd W. Robinson. Zhao is scheduled to be sentenced on November 11, 2023, at 9:30 a.m., also before Judge Robinson.
This case is being prosecuted by Assistant U.S. Attorneys Carl Brooker and Melanie Pierson.
DEFENDANTS Case Number 23-cr-00893-TWR
Zunyu Zhao (also known as Kathy Zhao) Age: 51 Calexico, CA
Xionwei Xiao (also known as Luis Xiao) Age: 52 Mexicali, MX
SUMMARY OF CHARGES
Count 1: Conspiracy – Title 18, U.S.C., Section 371
Count 2: Importation Contrary to Law – Title 18, U.S.C., Section 545
Count 1: Maximum penalty: Five years in prison and $250,000 fine
Count 2: Maximum penalty: Twenty years in prison and $250,000 fine
AGENCY
U.S. Fish and Wildlife Service
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
MS-13 and Mexican Mafia Leader Sentenced to More than 17 Years for an International Drug ConspiracyRead the Press Release
NEWS RELEASE SUMMARY – August 29, 2023
SAN DIEGO – Nelson Alexander Flores of Tijuana was sentenced in federal court to 210 months in prison for trafficking large quantities of methamphetamine into the United States from Mexico on behalf of MS-13 street gang and the Mexican Mafia prison gang.
According to information presented in court, between 2018 and May 2020, Flores coordinated with and supplied others with pound quantities of methamphetamine from various sources in Mexico, which was then distributed throughout the United States.
Flores is also serving a five-year sentence in federal prison for his role in an MS-13 RICO case to which he pleaded guilty in the Southern District of Ohio in United States v. Aguilar-River, et al., case no. 2:17-CR-164.
The court ruled that Flores’ term of imprisonment in the Southern District of California case will run consecutive to the term of imprisonment in the Southern District of Ohio RICO case.
“This defendant was responsible for moving more than 100 pounds of methamphetamine and cocaine a month on behalf of violent international street and prison gangs,” said Acting U.S. Attorney Andrew R. Haden. “He imported these drugs into San Diego from Mexico, before they were sent to poison other communities throughout the United States. We were proud to partner with Joint Task Force Vulcan in this prosecution to fight back on behalf of the Southern District of California and our nation.”
“The MS-13, Mexican Mafia, and their criminal partners fuel their criminal activities through the illicit importation and sale of narcotics,” said Director of Joint Task Force Vulcan (JTFV) John Durham. “Mr. Flores played a key role in MS-13’s international drug operations by coordinating the importation and distribution of narcotics throughout the United States, and his conviction and sentence mark a significant disruption. JTFV and our law enforcement partners will continue to work relentlessly to protect our communities from the plague of transnational organized crime.”
Since its creation in August 2019, JTFV has successfully implemented a whole-of-government approach to combatting MS-13, including increasing coordination and collaboration with domestic and foreign law enforcement partners; designating priority MS-13 programs, cliques and leaders, who have the most impact on the United States, for targeted prosecutions; and coordinating significant MS-13 indictments, including the first use of national security charges against MS-13 leaders. JTFV has been comprised of members from U.S. Attorney’s Offices across the country, including this Office; the Eastern District of New York; the Eastern District of Texas; the District of New Jersey; the Northern District of Ohio; the District of Utah; the District of Massachusetts; the Southern District of Florida; the District of Alaska; the Southern District of California; the District of Nevada; the Eastern District of Virginia; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. All Department of Justice law enforcement agencies are involved in the effort, including the FBI; DEA; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the U.S. Bureau of Prisons. In addition, HSI plays a critical role in JTFV.
DEFENDANT Case Number 22cr908
Nelson Alexander Flores Age: 52 Tijuana, Mexico
Aka “Mula,” aka “El 40,” aka “Cuarenta,” aka “Juan,” aka “Juanita”
SUMMARY OF CHARGES
International Drug Conspiracy – Title 21, United States Code, Sections 959, 960 & 963.
Maximum penalty: Life in prison and $10 million fine.
AGENCY
Homeland Security Investigations
Drug Enforcement Administration
Federal Bureau of Investigation
This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Leader and Chief Financial Officer of Human Smuggling Transportation Cell Sentenced to PrisonRead the Press Release
SAN DIEGO – Lourdes Ortiz Castaneda was sentenced in federal court yesterday to 34 months in prison for her role as the chief financial officer of a vast alien-smuggling organization operating in Southern California for several years.
The organization’s leader, Gerardo Rigoberto Barojas-Saavedra, was previously sentenced to 71 months in custody for his running one of the most prolific smuggling operations in Southern California from 2019 through 2021. According to their plea agreements, Barojas, known as “El Jefe” (“The Boss”), admitted that he, along with Ortiz and others, smuggled more than one hundred undocumented migrants from Mexico into the United States, including some minors, through the southern border to Orange County and as far as the east coast. According to their plea agreements, Barojas and Ortiz charged migrants between $7,000 and $8,000 per person to be smuggled to Orange County, receiving the majority of smuggling fees in cash. According to their plea agreements, Barojas received approximately $216,925 in wire transfers and Ortiz received payments in cash, check, and wire transfers totaling approximately $480,465.
U.S. Border Patrol Agents assigned to the Boulevard Border Patrol Station led the investigation into the smuggling organization, resulting in the interdiction of approximately 150 alien smuggling events and the prosecution of three couriers, according to the complaint. The plea agreements reflect that the organization operated by renting vehicles and recruiting drivers to pick up illegal aliens along the Interstate 8 corridor in Imperial and San Diego counties, after the aliens had crossed illegally into the United States. Several of these smuggling events involved substantial risk to the migrants, including, for example, one event in which three were transported in an unsafe manner concealed within the trunk of a vehicle.
According to publicly filed documents, on or about November 9, 2020, the Anaheim Police Department arrested Barojas for allegedly kidnapping one of the minor migrants he smuggled into the United States and holding the minor at gunpoint. Officers found nine migrants, including the minor, in Barojas’ stash house, and seized four Glock handguns, one shotgun, two AR-15 rifles (including Barojas’ personal rifle bearing punisher logo), high-capacity magazines, a suitcase containing ammunition, hand-drawn maps depicting smuggling routes and locations to pick up aliens in the Southern District of California, electronic devices, a ledger, pay/owe sheets, and over $20,000 in cash. Barojas pleaded guilty to assault with a semi-automatic firearm in violation of California Penal Code 245(b) and Human Trafficking for Forced Labor in violation of California Penal Code 236.1(a) in 2021.
The plea agreements revealed that while in custody on the state charges from 2020 to 2021, Barojas continued running the Barojas alien smuggling organization from custody with the help of Ortiz and others. Ortiz handled day-to-day operations during this time, and also continued managing the financial operations of the smuggling organization until her arrest in September 2021.
The sentences, handed down by U.S. District Judge Barry Ted Moskowitz, included enhanced penalties for the substantial risk that the Barojas organization’s drivers caused; the illegal transportation of an unaccompanied minor; the possession of firearms in furtherance of the offense; the transportation of more than 100 aliens; and their aggravated roles within the transportation cell’s alien smuggling activities.
“We cannot emphasize enough that human smugglers only care about money and have very little regard for the safety and well-being of their customers,” said Acting U.S. Attorney Andrew Haden. “I urge anyone considering this perilous journey: Please do not trust a smuggler with your life.”
This case is being prosecuted by Assistant U.S. Attorney Loren G. Rene.
DEFENDANTS Case Number 21-cr-02922-BTM
Gerardo Rigoberto Barojas-Saavedra Age: 35 Anaheim, CA
Lourdes Ortiz Castaneda Age: 28 Anaheim, CA
SUMMARY OF CHARGES
Conspiracy to Transport Aliens, in violation of 8 U.S.C. § 1324(a)(1)(A)(v)(I)
Maximum penalty: Ten years in prison and a $250,000 fine per count
AGENCY
U.S. Border Patrol
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The U.S. Attorney’s Office for the Southern District of California helps lead Joint Task Force Alpha (JTFA), which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico and the Northern Triangle countries of Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. JTFA consists of federal prosecutors and attorneys from U.S. Attorney’s Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from DHS’s Immigration and Customs Enforcement, Customs and Border Protection, and Border Patrol. The FBI and the Drug Enforcement Administration are also part of the Task Force.
Drug Dealer Sentenced to 210 Months in Fentanyl Overdose DeathRead the Press Release
SAN DIEGO— David Michael Busse of Temecula was sentenced in federal court today to 17 1/2 years in prison for supplying the fentanyl that led to the fatal overdose of 35-year-old Brook W. Jacoby on May 20, 2021. Two drug couriers for Busse - Roger Bionogers Santiago of Valley Center and Vanessa Lanae Lathan of Spring Valley - were also sentenced today to 78-months and 68-months, respectively, for their roles in delivering the deadly dose of fentanyl to the victim.
In imposing sentence on Busse, Judge Bashant emphasized that he clearly “knew the dangers of fentanyl” and given his drug dealing history, this outcome “was just a matter of time.”
According to the government’s sentencing papers, Jacoby was the father of a young daughter and had become engaged to be married five days before his death. He was a high-performing salesperson who was training for an upcoming triathlon. One of his siblings described him as a “beautiful and selfless soul” who had a “lingering positive impact on everyone.” He was memorialized in a June 2021 celebration of life. The video may be found at https://www.youtube.com/watch?v+ivSeUuQzS-0.
San Diego Police officers found Jacoby deceased at the kitchen table in his San Diego apartment. Next to him was suspected drug paraphernalia. Officers examined his cellular phone and found text messages between Busse and Jacoby related to the sale. Those messages revealed that the victim told Busse he had been “clean” for some months and had no experience with fentanyl when Busse sold him the drug Jacoby, who clearly had some trepidation about fentanyl, asked Busse whether he should only “do an extremely small amount…I will be OK?” Busse responded by asking if Jacoby had Narcan “just in case.”
The messages between Busse and Jacoby demonstrate that Busse understood the fentanyl he was selling was particularly potent. Busse sent Jacoby a screen shot of another conversation between Busse and another customer during which the customer told Busse, “Damn that shit was strong” and “that shit was crazy” and it “took my vision away for like five minutes….” Busse told Jacoby: “I’ve had people go out off [sic] smoking it….”
Through the investigation, law enforcement determined that Busse was advertising the fentanyl via the “Offer Up” app. As the prosecutor pointed out at sentencing, Busse has a lengthy drug-related criminal history dating back to 2009.
Through his plea agreement, Busse admitted to selling the fatal dose and participating in a fentanyl distribution conspiracy involving 40 grams or more of fentanyl. Lathan and Santiago, who were themselves fentanyl customers of Busse, each admitted that they transported and delivered fentanyl they obtained from Busse to the victim in exchange for additional fentanyl or other limited compensation.
"It is very clear that this defendant recognized the potential - if not inevitable - consequences of continuing to deal this deadly drug,” said Acting U.S. Attorney Andrew Haden. “Because of his callous actions, another life has met the tragic end that fentanyl brings, and a family has lost its father, fiancé, son and brother. We will continue to prosecute these cases in the hope of sparing another family this tragic consequence."
“This case reminds us that drug dealing is not a victimless crime,” said DEA Special Agent in Charge Shelly Howe. “Another family is suffering an unnecessary loss and DEA, along with our partners, will continue to find justice for these victims.”
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, and the Drug Enforcement Administration to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County. Investigators from the DEA Overdose Response Team led the investigation into Jacoby’s death.
This case was prosecuted by Assistant U. S. Attorneys Larry Casper and Sean Van Demark.
DEFENDANTS Case Number 21-CR-2158-BAS
David Michael Busse Age: 33 Temecula, CA
Vanessa Lanae Lathan Age: 31 Spring Valley, CA
Roger Bionogers Santiago Age: 36 Valley Center, CA
SUMMARY OF CHARGES
Distribution of Fentanyl – Title 21, United States Code, Section 841(a)(1) and Title 18, United States Code, Section 2
Maximum penalty: 20 years’ imprisonment
AGENCIES
Drug Enforcement Administration
San Diego Police Department