Southern District of California

NEWS RELEASE SUMMARY – August 24, 2023

SAN DIEGO – Tien Tan Vo, a doctor practicing in Imperial Valley, has pleaded guilty to crimes related to his years-long use of foreign unapproved and misbranded cosmetic drugs.

Vo pleaded guilty to misdemeanor counts of receipt of misbranded drugs in interstate commerce and being an accessory after the fact to an accomplice, who smuggled the unapproved drugs into the United States from Mexico. 

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 was 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. 

Vo acknowledged that he received $100,767 in gross receipts for almost four years of cosmetic services performed with unapproved drugs and devices.  As part of his plea agreement, he has agreed to forfeit that amount, and to pay a fine of $201,534.  Vo also agreed to pay restitution to victims of his offense.  

In his plea agreement, Vo admitted purchasing most of his unapproved drugs and devices from the operator of a “med spa” in Mexicali, Mexico, who smuggled them into the United States without declaring them. 

“All members of our community should be able to trust that their doctor is acting in their best interest,” said Acting U.S. Attorney Andrew Haden. “Through this prosecution, we are protecting patients from unapproved and potentially unsafe drugs and will always seek to thwart those who would exploit patients for financial gain.”

“Injecting unapproved medicines poses a significant threat to public health and can have serious consequences for individuals,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “Together, with our partnered agencies, we need to educate people of the dangers caused by using unauthorized botulinum toxin (the active ingredient in Botox®, Xeomin®, and similar products) and thwart those who smuggle and illegally use it for cosmetic procedures.”

“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.”

Sentencing is set for November 16, 2023, at 9:30 a.m. before U.S. Magistrate Judge Allison H. Goddard.

Potential victims related to this case may provide or request information by emailing USACAS.Cosmetic.Case@usdoj.gov.

DEFENDANT                                               Case Number 23cr1700                                               

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

Ocean vessel operating company Zeaborn Ship Management (Singapore) PTE. LTD. (Zeaborn) pleaded guilty to maintaining false and incomplete records relating to the discharge of oily bilge water and garbage on board the vessel Star Maia. In its plea, Zeaborn has agreed to pay a total monetary penalty of $2 million. The company’s Chief Engineer, Constancio Estuye, and Captain, Alexander Parreno, also pleaded guilty for their roles in the crimes.  

According to court documents, Zeaborn and Estuye admitted that – at least four times between June and October 2022 – they dumped over 7,500 gallons of oily bilge water from the Star Maia into the ocean without first processing the oily bilge water through required pollution prevention equipment. They also admitted that these illegal discharges were falsely recorded in the oil record book as having been made using the vessel’s pollution prevention equipment when the equipment had not been used. Oily bilge water typically contains oil contamination from the operation and cleaning of machinery on the vessel.

In addition to the illegal discharges of oily bilge water, Zeaborn and Parreno admitted that on at least three or four occasions between June and August 2022, they had burned garbage – including paper, plastics and oily rags – in barrels on the Star Maia’s deck. The barrels were then thrown into the ocean. This garbage burning and barrel disposal was not recorded in the vessel’s garbage record book, as required by law.

“Illegally dumping oily waste and garbage at sea poses a serious threat to the health and viability of the marine environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This prosecution demonstrates our commitment to ensuring that those who violate environmental laws are held accountable for their criminal conduct.”

“Unlawful oil discharges can cause significant harm to the marine environment,” said Acting U.S. Attorney Andrew Haden for the Southern District of California. “We will continue to safeguard our oceans by vigorous enforcement of environmental laws. Today’s case is a reflection of that commitment.”

“This prosecution highlights the Justice Department and the U.S. Coast Guard’s continued dedication in safeguarding our maritime environment against those that seek to deliberately harm our natural resources,” said Sector Commander Captain James W. Spitler of the U.S. Coast Guard’s Sector San Diego. “Illegal dumping of oil, falsification of oil record books and flagrant disregard for air emission requirements are egregious violations.  These guilty pleas should serve as a reminder that the Coast Guard and our partners at the Justice Department will work tirelessly to hold accountable those that seek to deliberately harm the maritime environment.”

Zeaborn pleaded guilty in U.S. District Court in San Diego to two felony violations of the Act to Prevent Pollution from Ships (APPS). The plea agreement, subject to acceptance by the court, includes a $1.5 million fine and a $500,000 community service payment. The community service payment will go to the National Fish and Wildlife Foundation to fund projects to benefit marine and coastal natural resources located in or around the Tijuana River National Estuarine Research Reserve in Southern California. Zeaborn will also serve a four-year term of probation during which all containerships and conventional bulk carriers operated by the company and calling on U.S. ports will be required to implement a robust environmental compliance plan.

Estuye and Parreno each pleaded guilty to one felony violation of the APPS for failing to accurately maintain the oil and garbage record books for the Star Maia. Sentencing for defendants Zeaborn, Estuve and Parreno is set for Dec. 1.

The U.S. Coast Guard Sector San Diego and the U.S. Coast Guard Investigative Service are investigating the case. Senior Trial Attorney Stephen Da Ponte of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Melanie K. Pierson for the Southern District of California are prosecuting the case.

Note, this release has been updated to specify which types of Zeaborn vessels are subject to the four-year term of probation.

NEWS RELEASE SUMMARY—August 21, 2023

SAN DIEGO— The U.S. Attorney’s Office, San Diego City Attorney’s Office and the non-profit MESA (Mentoring and Empowering Student Athletes) Foundation today launched a social media campaign featuring all of the members of the 2023-2024 San Diego State University’s men’s basketball team – including several who played in the 2023 NCAA national championship game - to promote fentanyl awareness and prevention.

This unique partnership, believed to be the first of its kind between a Name/Image/Likeness (NIL) collective and the Department of Justice, features the student-athletes describing the dangers of fentanyl and the need to be aware of locations to obtain Narcan in the community. Narcan is a medicine that rapidly reverses the effects of opioids to prevent fatal overdoses. The release includes the hashtags #BlockFentanyl and #KnowAboutNarcan. The two social media PSAs can be found here:

https://www.youtube.com/playlist?list=PLGvHJHdPh24X9JHCAywDdqt-Osgrb6yiR

In the public service announcements, athletes look at the camera and say: “Fentanyl kills. Creates chaos. Ruins families. It doesn’t care about your race. It doesn’t care how you identify. It doesn’t care if you are addicted or just trying for the first time. Fentanyl kills. That’s 70,000 brothers, sisters, fathers, and mothers lost last year. That Adderall, Percocet, Xanax, ecstasy you are offered - it likely contains fentanyl. That cocaine you would just try - it likely contains fentanyl. We need to help each other. Know where Narcan is. Watch for friends making strange sounds while sleeping at parties or turning blue. Call for help if in doubt. Be a good teammate, and let’s save lives.”

The campaign - timed to highlight National Fentanyl Prevention and Awareness Day (August 21, 2023) - is being deployed over Instagram, X (formerly Twitter), Snapchat, LinkedIn, and YouTube by the student-athletes, the MESA Foundation, the Department of Justice, and other coalition members.

The U.S. Attorney’s Office and law enforcement partners have attacked the fentanyl crises through aggressive prosecutions at every level of the supply chain – from the Sinaloa Cartel leadership, to cross-border trafficking organizations, to money launderers, to street level dealers who are selling drugs that result in overdose deaths.

The “Block Fentanyl” campaign is just one aspect of the U.S. Attorney’s Office’s prevention and outreach strategy. For example, on August 10, 2023, prosecutors from the U.S. Attorney’s Office and the City Attorney’s Office gave a presentation at San Diego State University to resident advisors and student leaders on the topic “Know Fentanyl.” The presentation, attended by approximately 250 students, covered the dangers of counterfeit and adulterated pills and powder, recognizing the signs of an overdose, and how to properly deploy Narcan.

“We are committed to innovative approaches to protect and educate the youth of our community about the extreme danger of fentanyl,” said Acting U.S. Attorney Andrew R. Haden. “We are willing to do whatever it takes to save lives and spread the word that fentanyl is still claiming many lives, and every one of us can and must take action to prevent fatal overdoses. I’d like to thank the incredible SDSU student-athletes, who did not hesitate to answer our call for help. They have graciously used their celebrity and influence for the most important cause: Keeping fellow students from making a fatal mistake with fentanyl.”

“As the City’s Prosecutor and the mother of two teenagers, I am extremely proud to participate in a campaign that informs our youth about the risks associated with fentanyl, an extremely potent synthetic opioid. Unbeknownst to most, fentanyl is 50 times stronger than heroin and 100 times stronger than morphine. Its availability has so increased that it’s now the number one killer in the nation for those between the ages of 18-and-45. We must ensure the truth about fentanyl reaches susceptible children and young adults before the drug does,” said San Diego City Attorney Mara W. Elliott. “I would like to thank Deputy City Attorney Mark Robertson for his important work representing my Office on the Opioid Task Force and for assisting with the creation of these powerful commercials.”

The MESA Foundation, established in 2022 after the NCAA began allowing student-athletes to receive compensation for the use of their NIL, connects Aztec student-athletes with nonprofits in the San Diego community in a variety of different capacities. The student-athlete receives a stipend for partnering with the charity through their Name, Image and Likeness.

More information about the MESA Foundation, a non-profit 501(c)(3) organization, can be found here:

https://www.mesafoundationsd.org/.

Additional fentanyl prevention resources can be found at San Diego County’s Community & Parent Toolkits which are available in both English and Spanish: https://www.sdpdatf.org/community-parent-fentanyl-toolkit.

Both offices would like to thank Isabelle Sandmeyer, and her company Studio Isla, for donating her time and talent to the “Block Fentanyl” project.

NEWS RELEASE SUMMARY – August 21, 2023

SAN DIEGO – James Charles Rivera of New York was sentenced in federal court today to 96 months in prison for leading a scheme to distribute steroids around the world and launder the substantial proceeds through cash and cryptocurrency.

According to admissions in his plea agreement, Rivera operated on the “dark web” with the moniker, “JuicePal.” He arranged and directed the distribution of steroids in nearly every state in the United States, as well as to Canada, Germany, Australia, and countries in the United Kingdom and the European Union from 2018 to 2021. He used encrypted communications and internet-access methods to avoid detection and took in millions of dollars in virtual currency and cash as proceeds from thousands of sales.

Rivera also worked with several co-conspirators in the United States, who were responsible for manufacturing steroids for him, shipping them to customers, receiving cash payments, and forwarding him proceeds. Rivera, a United States Citizen, ran this operation for years while living abroad.

“This defendant thought he could hide his international steroid distribution network and money laundering by operating on the dark web, but we have shined a bright light on his crimes,” said Acting U.S. Attorney Andrew Haden.

“This lengthy sentence is the result of an investigation into a complex global illicit counterfeit steroid production and distribution network that spanned several years, which concluded with the dismantlement of both the known U.S. and British networks of operation,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “The egregious criminal conspiracy attempted to utilize encrypted communications, cryptocurrencies, and an elaborate network of co-conspirators to obfuscate operational activity in the U.S. and abroad. I thank the several federal partners that came together to support HSI, most notably U.S. Postal Inspection Service and the Food and Drug Administration to dismantle these operations.” 

“The U.S. Postal Inspection Service is committed to identifying, investigating and disrupting these criminal organizations to protect our communities from the distribution of these dangerous drugs through our postal system,” said Carroll Harris, Postal Inspector in Charge of the Los Angeles Division.

This case was prosecuted by Assistant U. S. Attorney Owen Roth. 

DEFENDANTS                                             Case Number 21-CR-3382 AJB                               

James Charles Rivera                                     Age: 32                                   New York

SUMMARY OF CHARGES

Drug Trafficking Conspiracy – Title 21, U.S.C., Sections 841(a)(1), 841(b)(1)(E), and 846

Maximum Penalties: Ten years in prison, and a $500,000 fine

Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)

Maximum Penalties: Twenty years in prison, and the greater of $500,000 or twice the amount of loss

AGENCIES

Homeland Security Investigations

U.S. Postal Inspection Service

U.S. Food and Drug Administration

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.

NEWS RELEASE SUMMARY – August 18, 2023

SAN DIEGO – Pedro Escamilla Del Rosario of San Diego was sentenced in federal court today to 360 months in prison for sexually abusing a drugged eight-year-old girl while another person recorded the assault.

The defendant pleaded guilty on March 27, 2023, to one count of Sexual Exploitation of a Minor.

According to the publicly filed documents in the case, in March 2022, Homeland Security Investigations (HSI) received reports from the National Center for Missing and Exploited Children (NCMEC) regarding the user of a Google, LLC account who had been uploading digital files of visual depictions of minors engaged in sexually explicit conduct.

From March 2022 through June 2022, HSI agents received 41 separate reports regarding the Google account, and it involved approximately 6,700 digital files. Based on this information, HSI obtained a search warrant for the Google account and discovered thousands of visual depictions of minors engaged in sexually explicit conduct. This account belonged to Del Rosario. Among the visual depictions located in Del Rosario’s account, HSI agents discovered two videos which were produced in March 2018, one of which forms the basis of this federal conviction. 

Del Rosario was subsequently arrested and confessed to his involvement in the creation of the videos, including sexually molesting the minor-victim when he knew she had been over-medicated. Del Rosario also admitted to possessing the other visual depictions of minors engaged in sexually explicit conduct.

At today’s sentencing hearing, after the court heard statements by the minor-victim and the minor-victim’s foster parent, Assistant U.S. Attorney Andrew Sherwood argued for a substantial custodial sentence because the crimes committed by Del Rosario had caused irreparable harm to the minor-victim and had been perpetrated and recorded purely for Del Rosario’s sexual gratification. 

In imposing the 360-month sentence, U.S. District Judge Todd W. Robinson explained that the “statutory maximum for the offense of conviction, is necessary and sufficient, but not greater than necessary” to accomplish the sentencing objectives, including the need to protect the community from future crimes by Del Rosario.

“This defendant’s heinous actions have caused irreparable harm to the victim,” said Acting U.S. Attorney Andrew Haden. “The children in our community are often the most vulnerable members of our society.  There are few crimes that are more vicious and outrageous than crimes involving their sexual exploitation.” Haden thanked the prosecution team and investigating agencies for their excellent work on this case.

“The sexual abuse and exploitation of children victims rob their emotional and psychological development aside from stealing their innocence,” said Chad Plantz, special agent in charge for HSI San Diego. “The defendants’ deviant and perverse behavior will not be tolerated by HSI. This kind of abuse strikes at the very foundation of our society and we all must come together to combat this unspeakable crime that plagues the public welfare; our children deserve better.” 

DEFENDANTS                                             Case Number 22cr2752-TWR                                      

Pedro Escamilla Del Rosario                                      Age: 44                                   San Diego, CA

SUMMARY OF CHARGES

Sexual Exploitation of a Minor – Title 18, U.S.C., Section 2251(a) and (e)

Maximum penalty: Thirty years in prison and $250,000 fine; mandatory minimum 15 years in prison

AGENCY

Homeland Security Investigations

NEWS RELEASE SUMMARY – August 11, 2023

SAN DIEGO – Denny Bhakta of San Diego was arraigned in federal court today on additional charges that he fraudulently obtained $4 million in Paycheck Protection Program loans through several entities he managed and controlled. Bhakta was first indicted in December 2021 for defrauding investors in his companies; a grand jury returned a superseding indictment this week that includes additional charges.

The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted to provide emergency financial assistance to Americans suffering economic harm as a result of the COVID-19 pandemic. The CARES Act established the Paycheck Protection Program known as PPP, under which banks would make forgivable loans to small businesses, so that those businesses could keep their doors open and employees on their payroll.  If a business used the money for payroll and other eligible business expenses, the loans would be forgiven, and the federal government’s Small Business Administration would pay back the bank. 

According to court documents, Bhakta applied for and received at least 18 PPP loans on behalf of four entities he managed and controlled, including Fusion Hotel Management, LLC; Fusion Hospitality Corporation; True Vine Hospitality LLC; and Manu Bhakta Foundation. According to charging documents, his loan applications contained lies and false promises.  He misrepresented the entities’ number of employees and average monthly payroll expense, his ownership of other businesses, and whether the PPP loan funds would be used for payroll and other eligible expenses.  Bhakta did not use the money as promised; instead, he used the funds to make credit card payments, pay large expenses at casinos, and make cash withdrawals, according to the superseding indictment. He also allegedly used some of the money to perpetuate an investment fraud scheme.

Bhakta was originally charged with securities fraud and money laundering for running an investment fraud scheme that took in at least $28 million from investors since 2016. According to court documents and statements made in court, Bhakta solicited investments in his companies, Fusion Hotel Management, LLC and Fusion Hospitality Corporation. Bhakta falsely told investors that Fusion routinely acquired discounted blocks of hotel rooms from Hilton, which Fusion then sold to United Airlines at a higher price for a significant profit. Instead of buying blocks of hotel rooms with investors’ funds, however, Bhakta used the money for personal expenses and to make payments to other investors.

“The Paycheck Protection Program served as a lifeline to many businesses desperately trying to stay afloat during the pandemic,” said Acting U.S. Attorney Andrew R. Haden. “Anyone who abused this critical program will be held accountable.”

DEFENDANT                                               Case Number 21-CR-3352-JLS                                          

Denny Bhakta                                                 Age: 41                                   San Diego, CA

SUMMARY OF CHARGES

Securities Fraud – Title 15, U.S.C., Sections 78j(b), 78ff, and Title 17, C.F.R., Section 240.10b-5

Bank Fraud – Tile 18, U.S.C. Section 1344(2)

Money Laundering – Title 18, U.S.C., Section 1957

Maximum penalty: Thirty years in prison

AGENCY

Federal Bureau of Investigation

Securities and Exchange Commission

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

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.

NEWS RELEASE SUMMARY – August 11, 2023

SAN DIEGO – Former U.S. Postal Service mail carrier Tracy Rumley of El Cajon was sentenced in federal court this morning to five years of probation and 200 hours of community service for stealing mail from customers on her postal route in the Santee area of San Diego.

When imposing sentence, U.S. District Judge Janis L. Sammartino said, “Stealing mail is not the way to go. You will be caught, and you will be prosecuted.”

During the evening of November 21, 2022, an off-duty San Diego Police detective saw a woman in a hooded sweatshirt open a communal mailbox at his apartment complex in Santee, California and remove multiple pieces of mail. As the detective approached, the female closed the mailbox and fled in a White Nissan. After getting the license plate of the vehicle, the detective determined that Rumley resided at the same address as listed for the vehicle registration and referred the matter to the U.S. Postal Service.

Rumley had been placed on administrative leave from her employment at the Santee Post Office earlier that month and was terminated by the Postal Service on December 12, 2022. After securing a search warrant for the residence, on December 21, 2022, United States Postal Service Inspectors found more than 1,500 pieces of mail in Rumley’s residence including, but not limited to, gift cards, credit cards and even several Christmas presents that had all been stolen from nearly 900 customers along her mail delivery route in Santee. Inspectors also found the keys she was given as a mail carrier to access mailboxes. The keys were hidden in a potted plant within her bedroom. In her plea agreement, Rumley admitted that, even after being placed on administrative leave, she kept those keys though she was not authorized to do so and used them to continue to steal mail even after she was terminated. 

The government’s sentencing papers quoted several statements given by the victims of Rumley’s crimes. Those statements emphasized what Judge Sammartino observed was a “betrayal” of duty by the victims’ mail carrier. For example, a child who had been impacted by Rumley’s theft commented that, “I felt shocked because I got robbed by the mail lady.” An adult victim said, “She played us for idiots.”

“When customers entrust the U.S. Postal Service with their letters and packages, they expect each and every piece will be delivered to its final destination,” said Acting U.S. Attorney Andrew R. Haden. “The U.S. Attorney’s Office will zealously pursue those whose actions impact the integrity of our mail delivery system to achieve justice for the victims.” Haden thanked former Special Assistant U.S. Attorney Jennifer Luce and the U.S. Postal Service Office of Inspector General for their excellent work on this case.

“The sentencing in this case demonstrates the U.S. Postal Inspection Service’s commitment to protect the sanctity of the U.S. Mail and to ensure the public’s trust in the Postal Service by holding those that commit theft accountable for their actions,” said Carroll Harris, Inspector in Charge of the Los Angeles Division.   

DEFENDANT                                               Case Number 23cr0216-JLS                            

Tracy Rumley                                                 Age: 44                                   El Cajon, CA

SUMMARY OF CHARGES

Count 1: Keys or Locks Stolen – Title 18, U.S.C., Section 1704

Maximum penalty: Ten years in prison and $250,000 fine

Count 2: Theft of Stolen Mail Matter – Title 18, U.S.C., Section 1708

Count 3: Theft of Mail by Postal Employee – Title 18, U.S.C., Section 1709

Maximum penalty (Counts 2 & 3): Five years in prison and $250,000 fine

AGENCY

U.S. Postal Inspection Service         

NEWS RELEASE SUMMARY – August 11, 2023

SAN DIEGO –Danny Lamar Miller-Kidd was sentenced in federal court to 15 years in prison for his leadership role in a Baja California-based drug trafficking organization that imported and distributed hundreds of pounds of methamphetamine, cocaine, fentanyl, and heroin to various sub-distributors throughout the United States, including California, Arizona, Oregon, Nevada, Wyoming, Colorado, Utah, Illinois, and Tennessee.

Miller pleaded guilty in December 2022 to conspiracy to distribute controlled substances and possession of methamphetamine with intent to distribute. As part of his plea agreement, Miller admitted that he worked as a multi-kilogram distributor of controlled substances for a Baja California-based drug trafficking organization. Specifically, he worked with his co-conspirators to import multi-kilogram quantities of methamphetamine, cocaine, fentanyl and heroin from Mexico intended for distribution throughout the United States.

During the wiretap investigation, agents identified Miller as a leader of a drug distribution cell who was responsible for distributing controlled substances to various sub-distributors in Arizona, Utah, Illinois, Colorado and other states. Miller was acting in furtherance of the conspiracy when he was stopped by law enforcement in the Southern District of California as he was transporting more than 30 pounds of pure methamphetamine, 5,000 fentanyl pills, and multiple firearms inside his vehicle in September 2021. Wire intercepts revealed that Miller obtained his drugs from Mexico that were secreted in buckets of construction material. Miller was also known to possess assault rifles, including an AR-15 with a silencer, “ghost guns,” and other weapons throughout the investigation.

“Every defendant we convict of drug-related crimes is one less cog in the massive machine that delivers poison to our streets,” said Acting U.S. Attorney Andrew Haden. “We will continue to fight relentlessly to protect our communities from deadly drugs like fentanyl.”

“Here’s another example of how DEA and our partners continue to aggressively target drug trafficking organizations that are importing and distributing drugs into our country,” said DEA Special Agent in Charge Shelly Howe.

“IRS special agents will work tirelessly with our law enforcement partners and the U.S. Attorney’s Office to dismantle drug trafficking organizations by bringing their leaders to justice,” said Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation Los Angeles Field Office. “By following and eliminating the trail of illicit proceeds fueling the drug trade, IRS Criminal Investigation combats the flow of illegal guns and drugs that are killing Americans and destroying our communities. Mr. Miller’s sentencing should send a clear message of our resolve.”

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 using an intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

DEFENDANTS                                                                     Case Number 22cr1143-GPC                  

1. REDACTED                                                   Age: 42                                   Fugitive
2. REDACTED                                                   Age: 34                                   Fugitive
3. Danny Lamar Miller-Kidd                             Age: 51                                   180 months’ custody
4. Angela Diane Guerrero                                   Age: 39                                   70 months’ custody
5. Elizabeth Allison Edelman                             Age: 41                                   156 months’ custody
6. Erik Valenzuela                                              Age: 44                                   57 months’ custody
7. Ramiro Aguilar                                               Age: 41                                   108 months’ custody
8. Amber Mae Yaeger                                        Age: 40                                   Pending sentencing
9. Andrew Mauricio Martinez                            Age: 21                                   Pending sentencing
10. REDACTED                                                   Age: 46                                   Fugitive
11. Nilesh Prasad Maharaj                                   Age: 44                                   Fugitive
12. Nofoaiga Mauu                                               Age: 42                                   Pending trial
13. Yendi Cecilia Rosas                                       Age: 22                                   18 months’ custody
14. Arturo Valenzuela-Preciado                           Age: 60                                   37 months’ custody
15. Montserrat Lopez-Barron                               Age: 23                                   Pending trial
16. Maria Conchita Alonso-Lopez                       Age: 27                                   Awaiting sentencing
17. Juan Manuel Godinez-Gutierrez                    Age: 42                                   Fugitive

SUMMARY OF CHARGES

Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Sections 841(a)(1) and 846

Possession of Controlled Substances with Intent to Distribute – Title 21, U.S.C., Section 841(a)(1)

Importation of Controlled Substances – Title 21, U.S.C., Sections 952 and 960

Conspiracy to Launder Monetary Instruments – Title 18, U.S.C., Sections 1956(a)(1) and (h)

Criminal Forfeiture – Title 18, U.S.C., Section 982

Maximum penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years’ imprisonment, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and 3 years of supervised release.

AGENCY

Drug Enforcement Administration

Bureau of Land Management

Internal Revenue Service

Customs and Border Protection

Homeland Security Investigations

United States Border Patrol

United States Postal Inspection Service

San Diego Sheriff’s Department

Chula Vista Police Department

Oceanside Police Department

California Highway Patrol

Las Vegas Metropolitan Police Department

San Diego County District Attorney’s Office

*Allegations contained in an Indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.

NEWS RELEASE SUMMARY – August 10, 2023

SAN DIEGO – Sanjiv Taneja, the former CEO of a technology company sold to Qualcomm for over $150 million, pleaded guilty in federal court today for his role in a massive fraud. 

Taneja of Cupertino, California, pleaded guilty to one count of money laundering related to a $1.5 million transaction involving proceeds of the fraud on Qualcomm. In his plea agreement, Taneja admitted that he and co-defendants Karim Arabi, Ali Akbar Shokouhi, and others schemed to hide Arabi’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, Taneja admitted that he asked Arabi for performance numbers for Qualcomm’s existing technology to try to improve Abreezio’s marketing pitch, and that he even called Arabi by a different name in text messages 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 cash in October 2015. 

Taneja 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 Taneja knew. 

In his plea agreement, Taneja also admitted that Karim Arabi directed him to delete emails concerning the scheme once Qualcomm started investigating the Abreezio transaction, although Taneja was later able to recover the emails. 

“Fraud and deceit undermine legitimate businesses and the marketplace, whether they victimize small businesses or multinational corporations and their shareholders,” said Acting U.S. Attorney Andrew R. Haden.  “This office will seek justice against wrongdoers, big and small alike.”  

“Crimes like the one supported by Mr. Taneja and his co-conspirators threaten the economy at every level,” said FBI San Diego Field Office Acting Special Agent in Charge Jamie Arnold. “The FBI is committed to working with its law enforcement partners to ensure that every criminal taking part in corporate fraud is investigated and arrested.”

“Mr. Taneja was part of an elaborate conspiracy to steal tens of millions of dollars from a major technology company and a complex scheme to launder the proceeds,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation Los Angeles field office. “IRS Criminal Investigation special agents are experts at following the money through complex transactions and international movements, and we are committed to continued collaboration with our law enforcement partners to identify and bring to justice those who attempt to defraud people, businesses or both.”

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.

NEWS RELEASE SUMMARY – August 10, 2023

SAN DIEGO – Shantal Hernandez is charged in a complaint unsealed today with having sexual relations with a detainee at the Otay Mesa Detention Facility while she was a case manager at the Office of the Immigration Detention Ombudsman (OIDO), which provides oversight of immigration detention facilities.

OIDO is an independent office within the Department of Homeland Security. OIDO was established by Congress to assist individuals with complaints about the potential violation of immigration detention standards or other misconduct by Department of Homeland Security or contract personnel and provides oversight of immigration detention facilities. It is not a part of Immigration and Customs Enforcement or U.S. Customs and Border Protection. As part of her duties, Hernandez managed the complaints of ICE detainees in various detention facilities in the San Diego area.

According to the complaint, agents with the Department of Homeland Security’s Immigration and Customs Enforcement, Office of Professional Responsibility (ICE OPR), received information that Hernandez had been spending an unusual amount of time with a detainee - identified in court documents by the initials I.K.N. - at the Otay Mesa facility.

The complaint alleges that agents from ICE OPR obtained phone records from OMDC and determined that I.K.N. and Hernandez engaged in a significant number of sexually explicit phone calls and electronic communications. These calls discussed an ongoing relationship and sex acts between Hernandez and I.K.N. For example, in one call, Hernandez told I.K.N. that she had a video of one of their sex acts. Agents executed a search warrant that yielded a copy of one such video.

“The alleged conduct cannot and will not be tolerated,” said Acting U.S. Attorney Andrew Haden. “Those in a position of authority over immigration detainees must be held to the highest standard.”

“Hernandez’ main purpose as a DHS OIDO case manager was to promote safe and humane conditions within immigration detention,” said Jeffrey Gilgallon, special agent in charge for the Office of Professional Responsibility (OPR). “However, she allegedly abandoned that oversight role, instead using her position to engage in prohibited sexual activity with an ICE detainee in one of our detention facilities. OPR is fully committed to enforcing ICE’s zero tolerance policy against sexual abuse in our detention facilities and aggressively pursuing those DHS employees who violate the law, no matter their role or title.”

Hernandez made her initial appearance in federal court this afternoon. She is scheduled to appear in court on August 15, 2023, at 10 a.m. for a detention hearing before U.S. Magistrate Judge Jill L. Burkhardt.

DEFENDANTS                                             Case Number 23mj2882                                               

Shantal Hernandez                                          Age: 36                                   San Diego, CA

SUMMARY OF CHARGES

Sexual Abuse of a Ward – Title 18, U.S.C., Section 2243(b)

Maximum penalty: Fifteen years in prison and $250,000 fine

AGENCY

U.S. Immigration and Customs Enforcement, Office of Professional Responsibility

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

NEWS RELEASE SUMMARY – August 7, 2023

SAN DIEGO – Andrew R. Haden was sworn in today as Acting U.S. Attorney for the Southern District of California, one of the busiest federal districts in the nation. U.S. District Court Chief Judge Dana Sabraw administered the oath of office to Haden in the presence of his senior leadership team and a small group of friends and family.

Haden is a veteran prosecutor who has served in several high-profile leadership roles for the U.S. Attorney’s Office, including as the First Assistant U.S. Attorney (second-in-command) for the last year. Officially, Haden was appointed as Acting U.S. Attorney by the Department of Justice, under the Vacancies Reform Act, after the resignation on August 4, 2023, of then-U.S. Attorney Randy S. Grossman. 

“I am deeply honored to serve our nation and the people of this District as Acting United States Attorney,” Haden said. “I am looking forward to continuing my work with the outstanding team at the U.S. Attorney’s Office and our excellent law enforcement partners.”

The U.S. Attorney’s Office enforces federal criminal laws in the Southern District of California, which includes San Diego and Imperial counties, and represents the federal government in civil litigation.  The office is one of the nation’s largest, comprised of approximately 300 attorneys and staff members.  As the Acting U.S. Attorney, Haden is the chief federal law enforcement official for the district.

Haden is a career federal prosecutor. He joined the U.S. Attorney’s Office in 2010, after being selected and hired through the Attorney General’s Honors Program.  During his almost 13 years in the San Diego office, Haden has worked in the General Crimes Section, as the District’s Project Safe Neighborhoods Coordinator, as a Deputy Chief in both the Reactive and Major Crimes Sections, as the Chief of the Violent Crimes & Human Trafficking Section, as the Chief of the Criminal Division, and most recently, as the First Assistant U.S. Attorney.

In 2020, Haden received the nationwide Director’s Award for Superior Performance in a Managerial or Supervisory role from the Executive Office for United States Attorney’s for “extraordinary leadership contributions” to the Department of Justice from 2016-2019. Prior to joining the U.S. Attorney’s Office, Haden served as a law clerk for U.S. District Judge Thomas J. Whelan in the Southern District of California.

A San Diego native, Haden is a graduate of University City High School.  He received his Bachelor of Arts in Political Science from Stanford University. After college, Haden was commissioned as an Officer in the United States Navy where he served for five years, which included two overseas deployments.  For his last assignment, Haden was the Navigator on the USS MOBILE BAY (CG-53), a guided-missile cruiser homeported in San Diego.  Haden received his law degree from the University of San Diego.

NEWS RELEASE SUMMARY – August 3, 2023

SAN DIEGO – Jinchao Wei, a United States Navy sailor, was arrested yesterday on espionage charges as he arrived for work at Naval Base San Diego, the homeport of the Pacific Fleet. Wei is scheduled to appear in federal court today pursuant to a federal grand jury indictment charging him with conspiracy to send national defense information to an intelligence officer working for the People’s Republic of China.

The indictment, unsealed this morning, alleges that Wei, also known as Patrick Wei, was an active-duty sailor on the amphibious assault ship U.S.S. Essex stationed at Naval Base San Diego. In his role as a machinist’s mate, Wei held a U.S. security clearance and had access to sensitive national defense information about the ship’s weapons, propulsion and desalination systems. Amphibious assault ships like the Essex resemble small aircraft carriers and allow the U.S. military to project power and maintain presence by serving as the cornerstone of the U.S. Navy’s amphibious readiness and expeditionary strike capabilities.

The crime of espionage under U.S. Code Section 794 has never been charged in this district, and until today had only been charged five times in the last six years across the entire country. The statute is reserved for the most serious circumstances involving the passage of national defense information intended to harm the United States or for the benefit of a foreign power.

The indictment alleges the following:

In February 2022, Wei began communicating with an intelligence officer from the People’s Republic of China who requested that Wei provide information about the U.S.S. Essex and other Navy ships. Specifically, the Chinese officer tasked Wei with passing him photos, videos, and documents concerning U.S. Navy ships and their systems. The two agreed to hide their communications by deleting records of their conversations and using encrypted methods of communication.

At the request of the intelligence officer, Wei sent photographs and videos of the Essex; disclosed the locations of various Navy ships; and described defensive weapons of the Essex, between March 2022 and the present. In exchange for this information, the intelligence officer paid Wei thousands of dollars over the course of the conspiracy.

The indictment further alleges that in June of 2022, Wei sent the intelligence officer approximately 30 technical and mechanical manuals. These manuals contained export control warnings and detailed the operations of multiple systems aboard the Essex and similar ships, including power, steering, aircraft and deck elevators, as well as damage and casualty controls. The intelligence officer confirmed with Wei that at least 10 of those manuals were useful to him. For passage of those materials, the indictment alleges that Wei was paid $5,000.

In June 2022, the intelligence officer requested that Wei provide information about the number and training of U.S. Marines during an upcoming international maritime warfare exercise. In response to this request, Wei sent multiple photographs of military equipment to the intelligence officer.

In August 2022, Wei sent an additional 26 technical and mechanical manuals related to the power structure and operation of the Essex and similar ships. The manuals contained warnings that this was technical data subject to export controls and that it was deemed “critical technology” by the U.S. Navy.

The indictment further alleges that in October 2022, Wei sent a technical manual to the intelligence officer describing the layout and location of certain departments, including berthing quarters and weapons systems. Specifically, Wei sent a weapons control systems manual for the Essex and similar ships. This manual contained export-controlled data that could not be exported without a license from the U.S. government. The indictment alleges that Wei knowingly violated the International Traffic in Arms Regulations by transmitting this manual to the Chinese intelligence officer without obtaining a required license.  

The intelligence officer continued to request information in 2023, including information about the overhaul and upgrades to the Essex. Specifically, he requested blueprints, especially those related to modifications to the flight deck. Wei provided information related to the repairs the Essex was undergoing, as well as other mechanical problems with similar vessels.

During the alleged conspiracy, the intelligence officer instructed Wei to gather U.S. military information that was not public and admonished him not to discuss their relationship and to destroy any evidence regarding the nature of their relationship and their activities.

“We have entrusted members of our military with tremendous responsibility and great faith,” said U.S. Attorney Randy Grossman. “Our nation’s safety and security are in their hands. When a soldier or sailor chooses cash over country, and hands over national defense information in an ultimate act of betrayal, the United States will aggressively investigate and prosecute.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“Petty Officer Wei, who as a service member was trusted with our nation’s secrets, is accused of selling out his country and betraying his oath to the Navy by willingly providing sensitive military information to a Chinese intelligence officer for his own financial gain,” said Special Agent in Charge Brice Miller of the NCIS Office of Special Projects. “NCIS will continue to leverage its unique law enforcement and counterintelligence authorities to aggressively root out those who put our nation’s warfighters at risk. We sincerely thank the FBI and the Department of Justice for their significant assistance to this complex investigation.”

“These arrests show the FBI’s commitment to utilizing all of its law enforcement and U.S. intelligence community resources and capabilities to aggressively combat the People’s Republic of China’s government’s threats against our military and to protect the United States’ most precious assets,” said FBI San Diego Field Office Special Agent in Charge, Stacey Moy. “We remain committed to identifying, disrupting, and dismantling any and all efforts by the PRC to threaten our national security.”

This case was investigated by the FBI and the Naval Criminal Investigative Service and is being prosecuted by Assistant U.S. Attorneys John Parmley and Fred Sheppard from the U.S. Attorney’s Office for the Southern District of California and Trial Attorney Adam Barry from the National Security Division’s Counterintelligence and Export Control Section.

View the Indictment

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

DEFENDANTS                                             Case Number             23CR01471-H

Jinchao Wei                                            Age: 22                   San Diego

SUMMARY OF CHARGES

Title 18, United States Code, Section 794(c) – Conspiracy to Communicate, Deliver, or Transmit Defense Information to Aid a Foreign Government

Maximum penalty: Life in prison, $250,000 fine

Title 18, U.S.C., Sec. 794(a) – Communicate, Deliver, or Transmit Defense Information to Aid a Foreign Government

Maximum penalty: Life in prison and $250,000

Title 22, U.S.C., Sec. 2778(b)(2) and (c); Title 22, C.F.R., Secs. 121.1, 127.1 and 127.3 – Conspiracy to Export Defense Articles Without a License

Maximum penalty: Twenty years in prison and $1 million fine

Title 22, U.S.C., Sec. 2778(b)(2) and (c); Title 22, C.F.R., Secs. 121.1, 127.1 and 127.3 – Export of Defense Articles Without a License

Maximum penalty: Twenty years in prison and $1 million fine

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Naval Criminal Investigative Service

NEWS RELEASE SUMMARY – August 3, 2023

SAN DIEGO – Edgar Herrera Pardo, aka Caiman, an alleged violent cartel enforcer in Tijuana, Mexico, was extradited from Mexico yesterday to face federal drug trafficking charges in San Diego. 

Caiman was indicted in the Southern District of California on April 10, 2019, as an alleged leader of a group known as Los Cabos, which operated in Baja California to secure control of the region for Cártel de Jalisco Nueva Generación, commonly known as CJNG. Los Cabos employed rampant violence to ensure that CJNG maintained the ability to traffic drugs through Tijuana and into the United States.

Caiman was apprehended by authorities in Mexico on August 5, 2019, and has been in custody there since. He arrived in San Diego on August 2, 2023, and made his initial appearance today before U.S. Magistrate Judge Mitchell D. Dembin. He is scheduled for a detention hearing before Judge Dembin on August 8, 2023 at 10 a.m.

“According to the government’s allegations, Herrera Pardo and his group of enforcers unleashed appalling violence on Tijuana on behalf of a powerful drug cartel that is responsible for moving large quantities of illicit drugs into the U.S.,” said U.S. Attorney Randy Grossman “This extradition shows that those who put American lives at risk through trafficking of dangerous substances will be held responsible, wherever they may be. The Department of Justice appreciates the cooperation of the Mexican authorities in this matter. With the assistance of our law enforcement colleagues at home and around the world, we will aggressively pursue drug traffickers and bring them to justice.” Grossman thanked the prosecution team and the Drug Enforcement Administration for their excellent work on the case.

“Drug trafficking is a violent crime,” said DEA Special Agent in Charge Shelly Howe. “The alleged actions of Edgar Herrera Pardo demonstrate the devastation that drug trafficking can have on a community. The DEA and its partners at the local, state, and federal level are dedicated to protecting the community from the dangerous actions of people like Herrera Pardo.”

The Justice Department extends its gratitude to the Mexican Attorney General, Foreign Secretariat, and prosecutorial and law enforcement authorities for making the extradition possible. The Justice Department’s Office of International Affairs provided significant assistance in securing the defendant’s arrest and extradition from Mexico. The U.S. Marshals Service assisted in bringing the defendant back to the United States.

This case is part of a long-term investigation led by the Southern District of California that included a six-month period of judicially-authorized interceptions and led to the indictment of other cartel enforcers in Tijuana and drug distributors in the United States.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.

DEFENDANT                                                           Case Number: Case Number: 19CR1274-BAS

Edgar Herrera Pardo aka Caiman                               Age: 35                       Tijuana, Mexico

SUMMARY OF CHARGES

Conspiracy to Distribute Controlled Substances 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 Distribute Controlled Substances, 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 and $10 million fine

INVESTIGATING AGENCIES

Drug Enforcement Administration

Homeland Security Investigations

United States Marshals Service

Department of Justice, Organized Crime Drug Enforcement Task Force

Department of Justice, Office of Enforcement Operations

Department of Justice, Office of International Affairs

San Diego Sheriff’s Department

NEWS RELEASE SUMMARY – July 28, 2023

SAN DIEGO - Jimmy and Ashley Collins, a married couple living in Birchwood, Tennessee, pleaded guilty in federal court today, admitting that they participated in a health care fraud scheme that bilked TRICARE – the health care program that covers United States service members –out of more than $65 million.

The couple admitted they worked with others to recruit TRICARE beneficiaries who were willing to sign up to receive expensive compounded medications, even though the beneficiaries did not really need the medications. The beneficiaries’ information was sent to Choice MD, a Tennessee medical clinic co-owned and operated by the Collinses. Doctors and medical professionals employed by the Collinses at Choice MD, including Dr. Susan Vergot, Dr. Carl Lindblad, and nurse practitioner Candace Craven, then wrote prescriptions for the TRICARE beneficiaries, despite never conducting a medical review or examination of the patients in person. Once signed by the doctors, these prescriptions were not given to the straw beneficiaries, but sent directly to The Medicine Shoppe, a pharmacy in Bountiful, Utah, which filled the prescriptions and received massive reimbursement from TRICARE.

Between December 2014 and May 9, 2015 – the day that TRICARE stopped reimbursing for compounded medications – the doctors working for the Collinses at Choice MD authorized 4,442 prescriptions and billed TRICARE $65,679,512 for these prescriptions.

The owners of The Medicine Shoppe then paid kickbacks to the Collinses based on a percentage of the TRICARE reimbursement paid for the prescriptions referred by the Collinses’ recruiter network. Between February and July 2015, these kickback payments to the Collinses totaled at least $45.7 million dollars. The Collinses, in turn, paid kickbacks to the recruiters working as part of their network, including defendants Josh Morgan, Kyle Adams, and Daniel Castro, among others.

The United States has seized property and items purchased by the Collinses and others with the proceeds of the scheme. Included among these items is an 82-foot yacht; multiple luxury vehicles, including two Aston-Martins; a multimillion-dollar investment annuity; dozens of pieces of farm equipment and tractor-trailer trucks; and three pieces of Tennessee real estate.

The Collinses are the last members of the conspiracy to plead guilty. The doctors and nurse practitioner who prescribed these unnecessary prescriptions, the corporate owner of the pharmacy that filled these unneeded prescriptions, and the patient recruiters have all pleaded guilty for their roles in the conspiracy to commit healthcare fraud and admitted their roles in this fraudulent scheme.

“The scheme alleged in this case resulted in massive losses to a taxpayer-funded healthcare program meant to help members and veterans of our armed forces,” said U.S. Attorney Randy Grossman. “The days of yachts and luxury cars are gone. With these guilty pleas, we are holding these defendants accountable for their crimes.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“The Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of TRICARE, the health care system for our military members and their families,” said Special Agent-in-Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “Today's outcome demonstrates our unwavering commitment to hold accountable those that perpetrate fraud against TRICARE and put its beneficiaries at risk.”

“Mr. and Mrs. Collins operated a TRICARE scheme that defrauded the American taxpayer of more than $65 million in healthcare resources that should have been directed to service members, retirees, and their dependents,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “This guilty plea should serve as a warning that NCIS and our partners are dedicated to rooting out fraud that harms the military community.”

Jimmy and Ashley Collins are scheduled to be sentenced on October 27 at 9 a.m. before U.S. District Judge Janis L. Sammartino.

DEFENDANTS                                 Case Numbers: 18-CR-1850-JLS, 18-CR-1855-JLS

Jimmy Collins                                     Age: 59                       Birchwood, TN

Ashley Collins                                    Age: 37                       Birchwood, TN

SUMMARY OF CHARGES

Jimmy Collins:

Receipt of Illegal Remuneration, in violation of 42 U.S.C. §1320(a)-7b(b)(1)(A)

Maximum penalty: Ten years in prison and $100,000 fine or double loss amount, whichever is greater

An order of restitution requiring defendant to repay at least $65,679,512.71 to DHA/TRICARE

Ashley Collins:

Conspiracy, in violation of 18 U.S.C. § 371

Maximum penalty: Five years in prison and $250,000 fine or double loss amount, whichever is greater

An order of restitution requiring defendant to repay at least $65,679,512.71 to DHA/TRICARE

AGENCY

Defense Criminal Investigative Service

Naval Criminal Investigative Service

IRS Criminal Investigation Division, Gulfport, MS

Federal Bureau of Investigation - Jackson, MS Field Office

SAN DIEGO – A Los Angeles metropolitan resident was sentenced today to 41 months in prison for repeatedly installing specialized devices to steal the financial information of unwitting victims at gas pumps throughout Southern California. 

Haykaz Mansuryan, age 34, admitted in his plea agreement that he broke into dozens of gas pumps to install “skimmers”—customized electronic devices to steal credit and debit card information from unknowing patrons using the pumps.  Mansuryan admitted that the conspiracy he participated in purloined over $1 million while he was involved. 

"The public has the right to safely conduct everyday financial transactions,” said U.S. Attorney Randy S. Grossman.  “Anyone who steals from unwitting victims will face justice.” 

Mansuryan admitted that he and his accomplices broke into gas pumps throughout Southern California and installed customized skimming devices, built by other members of the scheme, to steal victims’ credit and debit card information during otherwise legitimate transactions.  Mansuryan and his conspirators would then make unauthorized cards encoded with victims’ information for their own use, stealing victims’ funds, or otherwise sell victims’ financial information outright to others who would exploit it for their own gain.

According to court documents, law enforcement recovered 54 skimming devices from different Southern California gas stations visited by Mansuryan.

Mansuryan admitted in his plea agreement that he personally received $931,213.92 from the scheme over the course of his participation, which lasted from August 2018 to October 2021.  He was ordered to forfeit that amount, and to participate in paying restitution of $923,374.14 to the victims of his crime together with his codefendants.

Other defendants in this and a related case previously received prison time for similar conduct.  On January 6, 2023, Robert Fichidzhyan was sentenced to 41 months in custody for his role in building the skimmers used by Mansuryan and his associates.  He was also ordered to pay $619,923.45 in restitution.  On June 23, 2022, Margar Simonyan was sentenced to 12 months and 1 day in custody in related case number 21-cr-2659-BAS, together with $11,810 of forfeiture and restitution.  One defendant remains a fugitive.  Two defendants, Hayk Shakaryan and Vasiliy Polyak, are presently set for jury trial September 12, 2023.  The remaining defendants are pending sentencing. 

“This case is a great reminder that even the most technical and sophisticated criminal groups can be dismantled by the collaborative efforts of law enforcement professionals. I am truly proud of the hard work our dedicated men and women have performed on this case, which continues to show we will continuously pursue those taking advantage of unknowing victims and protect the U.S. financial system,” said Jason Reynolds, Special Agent in Charge with the San Diego Field Office of the United States Secret Service.

This investigation involved significant contributions from many different sources, including the Internal Revenue Service, Criminal Investigation; the San Diego Police Department; the San Diego County Sheriff’s Department; the Glendale Police Department; the California Department of Food and Agriculture’s Bureau of Weights and Measures; the U.S. Attorney’s Office for the Central District of California; and other state, local, and federal law enforcement partners, as well as assistance from and partnerships with the financial and private sectors, such as the National Cyber-Forensics Training Alliance (NCTFA).  Anyone who believes that they may be a victim of this offense can visit the U.S. Department of Justice’s large case website for more information: www.justice.gov/largecases. 

DEFENDANTS                                                                    Case Number 21-CR-2660-BAS

1. Haykaz Mansuryan                       34                                Residence: Granada Hills, California
2. Hayk Shakaryan                            34                                Residence: Glendale, California
3. Davit Babayan                              36                                Residence: Granada Hills, California
4. Artour Hakobyan                          39                                Residence: Glendale, California
5. Petros Armutyan                           36                                Fugitive
6. Hakop Karayan                             44                                Residence: Glendale, California
7. Robert Fichidzhyan                      40                                Residence: North Hollywood, California
8. Vasiliy Polyak                               32                                Residence: Glendale, California

SUMMARY OF CHARGES

Conspiracy to Use Unauthorized Access Devices and Possess Device-Making Equipment, in violation of Title 18, United States Code, Sections 1029(b)(2), 1029(a)(2), and 1029(a)(4)

Maximum Penalty: five to ten years in prison, depending upon prior convictions; fine of $250,000 or twice the gross gain or loss

Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A (Defendants 1, 2, and 4 through 6 only)

Maximum Penalty: mandatory minimum two years in prison, consecutive to any other sentence

AGENCIES

U.S. Secret Service

SAN DIEGO – Derek Gleeson, an Information Technology (“IT”) Consultant, was sentenced in federal court today to 21 months in prison for embezzling hundreds of thousands of dollars from a family-owned small business based in New Jersey.

In November 2022, Gleeson, pleaded guilty to a wire fraud charge, admitting that he charged the small business for IT hardware, software, and services that he never supplied.  Gleeson also admitted that he ginned up or altered invoices in an effort to substantiate the fake charges he submitted to the company.  According to the plea agreement, when the company grew suspicious and confronted Gleeson about the charges, he installed pirated software on the company’s servers, all to make it appear that he had purchased and installed legitimate software, when in fact he had not.  The fraudulent scheme lasted for four years and resulted in over $600,000 in losses.  Gleeson lived in Carlsbad, California at the time of the fraud.

"For years, this defendant took advantage of a position of trust that gave him full access to a small business’s IT system,” said U.S. Attorney Randy Grossman. “Fortunately, he has been held accountable for the significant impact his crime had on this business and its owners.” Grossman praised the excellent work of the prosecutors and FBI agents who worked on this case.

DEFENDANTS                                            Case Number 20cr3246-DMS                                             

Derek Gleeson                                                Age: 51                                   Round Rock, TX

SUMMARY OF CHARGES

Wire Fraud – Title 18, U.S.C., Section 1343

Maximum penalty: Twenty years in prison and $250,000 fine

AGENCY

FBI

NEWS RELEASE SUMMARY – July 21, 2023

SAN DIEGO – Matthew George Lombardo was sentenced in federal court to 36 months in prison for using his position as a clerk at a local hospital to steal patient identifying information and pass the information on to others in an attempt to steal Pandemic Unemployment Assistance (PUA) benefits.

Lombardo pleaded guilty in September 2022. According to the government’s sentencing memo, in August of 2020 Lombardo worked at a hospital as a Patient Service Representative where he had access to patient admission sheets, which included patient identifying information. Lombardo used that position to access that confidential patient information and provide it to a co-defendant for use in submitting PUA claims to the California Employment Development Department (EDD). Text messages between Lombardo and his co-defendants show they were looking for the most vulnerable victims. For example, on August 15, 2020, Lombardo texted a co-defendant “if you need social security numbers or anything I can pull that shit up at work.”  The government’s sentencing memo further describes how Lombardo and his co-defendants deliberately took advantage of people in their most vulnerable state. For example, on August 22, 2020, Lombardo texted his co-defendant the name, date of birth, social security number, and address of a patient and wrote, “this guy died a few hours ago, how many names do we need?” The co-defendant texted back: “find me one who is still alive . . . someone 55 or younger who is on their way out.”

In imposing a 36-month sentence U.S. District Judge Cathy Ann Bencivengo noted that Lombardo was stealing public assistance benefits intended to help people during a national emergency and said she found the text messages deliberately targeting hospital patients to be “callous.”

"During a national healthcare emergency, Mr. Lombardo stole the identities of hospital patients to defraud the government of funds intended for people in crisis,” said U.S. Attorney Randy Grossman. “This office and our law enforcement partners are dedicated to pursuing such frauds and will hold the perpetrators accountable.” Grossman thanked the prosecution team and investigating agencies who diligently pursued this case.

“The DEA and its partners will continue to pursue justice for the citizens of San Diego,” said DEA Special Agent in Charge Shelly Howe.

DEFENDANT                                               Case Number 21-CR-2154-CAB                                        

Matthew George Lombardo                           Age: 54           San Diego

SUMMARY OF CHARGES

Count 1:                      Conspiracy to Commit Wire Fraud – Title 18, U.S.C., Section 1349

                                     Maximum penalty: 20 years in prison

Counts 2 and 3:           Aggravated Identity Theft – Title 18, U.S.C., Section 1028A

                                     Maximum penalty: 2 years in prison

Count 4:                      Using Confidential Health Information for Personal Gain – Title 42, U.S.C., Section 1320d-6

Maximum penalty: 10 years in prison

AGENCY

Drug Enforcement Administration

United States Postal Inspection Service

United States Department of Labor, Office of the Inspector General

California Employment Development Department Investigation Division

San Diego County Sheriff’s Department

NEWS RELEASE SUMMARY – July 20, 2023

SAN DIEGO – Charisse Elaine Alexander pleaded guilty in federal court today to Conspiracy to Commit Wire Fraud, admitting that she stole 66 government-issued checks intended for unhoused individuals while working at the San Diego (Neil Good) Day Center for Homeless Adults.

According to her plea agreement, Alexander was employed at the San Diego (Neil Good) Day Center in April 2021 when she and her then-boyfriend devised a scheme to steal government checks sent to unhoused individuals receiving their mail at the Center. Alexander exploited her access to the mailroom to steal mail containing checks sent by the Social Security Administration, Department of Veterans Affairs, Internal Revenue Service, and State of California. At least 56 individuals, most unhoused and of extremely limited financial means, had checks stolen by Alexander between April 2021 and January 2023. 

Alexander, 55, admitted that she would steal the checks from the Center’s mailroom, divide them with her then-boyfriend, and that they would forge the signature of the intended recipient and deposit the check into their respective bank accounts. The money was eventually withdrawn at ATM locations in California and Nevada, many inside or near casinos. In total, Alexander agreed that she and her co-conspirator received at least $73,466.43 in stolen government money as a result of their fraud conspiracy.  

Under the terms of her plea agreement, Alexander has agreed to make full restitution for the money stolen by both her and her co-conspirator. 

“This crime victimized dozens of individuals, many of whom may not know that they had their checks stolen,” said U.S. Attorney Randy Grossman. “This defendant exploited a position of trust and caused financial hardship to those least able to go without their retirement benefits, veteran’s pensions, tax returns, and public aid.” Grossman thanked the prosecution team and the Social Security Administration Office of the Inspector General for discovering and investigating this crime.

“Ms. Alexander preyed upon a vulnerable community and her criminal actions deprived them of their vital Social Security benefits,” said Gail S. Ennis, Inspector General for the Social Security Administration. “My office will continue to investigate those who conspire to steal the Social Security benefits of others for their own gain. I thank the U.S. Attorney’s Office and Special Assistant U.S. Attorney Jeffrey D. Hill for their work in prosecuting this case.”  

Alexander was released on bail pending her sentencing hearing, which is scheduled before U.S. District Judge Barry Ted Moskowitz on October 12, 2023, at 1 p.m.

If you or someone you know were receiving mail at the San Diego (Neil Good) Day Center for Homeless Adults between 2020 and 2023, and believe that mail may have been stolen, please contact the United States Attorney’s Office at the number listed above, or the Social Security Fraud Hotline at (800) 269-0271.

DEFENDANT                                   Case Number 23cr1460-BTM           

Charisse Elaine Alexander                 Age: 55                                   San Diego, CA

SUMMARY OF CHARGES

Conspiracy to Commit Wire Fraud – Title 18, U.S.C., Section 1349

Maximum penalty: Twenty years in prison and $250,000 fine

AGENCIES

Social Security Administration – Office of the Inspector General

NEWS RELEASE SUMMARY – July 17, 2023

SAN DIEGO – An indictment unsealed in federal court today charges Alexandra Crystal McFarland and Demetrius Montre McFarland, a married couple, with participating in a scheme to steal IRS stimulus payments during the COVID-19 pandemic from destitute and vulnerable victims and using the proceeds to purchase a luxury vehicle, jewelry and furniture. 

The indictment alleges that between April 2020 and at least September 2020, Mrs. McFarland approached homeless and low-income individuals throughout Southern California for the purpose of soliciting and collecting their personal identifying information (“PII”). Mrs. McFarland then allegedly used that information—along with the PII of detainees at two local detention facilities—to submit applications for Economic Impact Payments (EIP) from the IRS, which are commonly referred to as “stimulus payments.” 

For his part, Mr. McFarland allegedly provided Mrs. McFarland with the PII of his fellow detainees at the Vista Detention Center. Mr. McFarland is presently serving a state prison term for attempted murder. 

Mrs. McFarland allegedly made false representations to obtain the PII, including that those providing their PII to her could expect to receive an EIP in the mail, when in fact Mrs. McFarland directed payment of the EIP to a bank account that she controlled. Similarly, Mrs. McFarland also allegedly claimed she would assist with the application in exchange for an agreed-upon portion of the EIP, but in fact would keep more than the agreed-upon amount—and sometimes the entire EIP. The indictment further alleges that Mrs. McFarland also used victims’ PII without lawful authority to apply for benefit payments from the State of California Employment Development Department. 

The indictment states that Mrs. McFarland used various EDD debit cards to purchase thousands of dollars of jewelry, nearly $9,000 in furniture that she shipped to her Spring Valley residence, and to cover part of a $60,000 down payment for a Mercedes-Benz G-Class 550 SUV that she purchased in the name “Alexa McFarland.” In addition to the conspiracy count, the indictment charges Mrs. McFarland with money laundering based on her purchase of the luxury vehicle, which the IRS has seized.

Mrs. McFarland entered a not guilty plea on July 17, 2023.  A detention hearing before U.S. Magistrate Judge Michael S. Berg is scheduled for July 20, 2023, and a motion hearing and trial setting before U.S. District Judge Gonzalo P. Curiel is scheduled for August 7, 2023.

Mr. McFarland is expected to make his initial appearance on July 18, 2023. Mr. McFarland will be arraigned on both the indictment and on allegations that he violated the terms of supervised release imposed in his prior federal conviction for Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity (RICO) in Criminal Case No. 17-CR-270-JAH. 

DEFENDANTS                                             Case Number 23-CR-1098-GPC                                         

Alexandra Crystal McFarland                                    Age: 32                                   San Diego, CA

Demetrius Montre McFarland                                                Age: 30                                    San Diego, CA

SUMMARY OF CHARGES

Conspiracy–Title 18, U.S.C., Section 371

Maximum penalty:  Five years in prison and $250,000 fine

Money Laundering–Title 18, U.S.C., Section 1957

Maximum penalty:  Ten years in prison and $250,000 fine

AGENCY

Internal Revenue Service, Criminal Investigation

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

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.

NEWS RELEASE SUMMARY – July 14, 2023

SAN DIEGO – Randy S. Grossman, United States Attorney for the Southern District of California, today announced his resignation, effective at the end of the day on August 4, 2023. Grossman plans to return to the private sector.

“It has been the honor of my life to serve as U.S. Attorney alongside our office’s talented and selfless public servants and our exceptional agency and community partners,” Grossman said. “I am very proud of what we accomplished together for our nation, and I am deeply grateful for the opportunity to have served the people of the Southern District of California. I will leave with the utmost confidence in the future success of the office.”

Grossman, who previously served as the First Assistant U.S. Attorney, began serving as Acting U.S. Attorney on February 28, 2021. Attorney General Merrick Garland then appointed Grossman to be the interim U.S. Attorney, effective December 26, 2021. After Grossman served in that role for 120 days, United States District Judges in the Southern District of California voted to appoint him as U.S. Attorney, effective April 25, 2022.

 As the chief federal law enforcement official for San Diego and Imperial counties, Grossman prioritized criminal prosecutions that address the most significant public safety challenges to our district and nation. Together with federal, state and local agency partners, the office successfully prosecuted cases involving national security and cybersecurity; violent crime and illegal firearms; human smuggling and human trafficking; crimes against children; and drug trafficking, including an all-in strategy to dismantle every level in the fentanyl supply chain - from the Sinaloa Cartel leaders to the street level dealers.

Grossman also prioritized the prosecution of fraud and corruption during his tenure, including COVID-related fraud, cryptocurrency schemes, securities fraud, and elder fraud. Grossman oversaw significant civil matters, including successful defensive litigation on behalf of the United States, and the recovery of millions of dollars against individuals and companies for fraud and civil rights violations.

During Grossman’s tenure, the United States Attorney’s Office focused on community outreach and grant programs that strengthened relationships between law enforcement agencies and the communities they serve. These include education programs on hate crimes and hate incidents, reentry initiatives and other grant-funded programs to reduce violent crime, and programs to prevent fentanyl overdose deaths.

Grossman continued the collaborative work of multiple stakeholders in the Southern District of California through two highly successful criminal diversion programs led by the U.S. Attorney’s Office - the Alternative to Prison Solutions Diversion Program and the Veteran’s Diversion Program.

As the United States Attorney for one of the largest districts in the nation, Grossman led significant regional and nationwide initiatives for the Department of Justice. For example, the office co-led Joint Task Force Alpha, which was established by the Attorney General in June 2021, to combat human international human smuggling and human trafficking. Grossman also served on subcommittees for the Attorney General’s Advisory Committee (AGAC), which consists of a select number of U.S. Attorneys who advise the Attorney General on policy issues impacting federal prosecutors’ offices across the country. Grossman served as the co-chair of the Border and Immigration Law Enforcement Subcommittee and a member of the White-Collar Fraud and Violent Crime Subcommittees of the AGAC.

Grossman is a graduate of California Western School of Law (J.D.) and the University of Arizona (B.B.A.). For more information on Grossman’s background, please see https://www.justice.gov/usao-sdca/meet-us-attorney.

NEWS RELEASE SUMMARY – July 13, 2023

SAN DIEGO – Jose Cruz Noguez, the coordinator of a fatal smuggling event near Calexico, California, on March 2, 2021, was sentenced today in federal court to 15 years in prison. During the event, 13 undocumented migrants were killed when the vehicle in which they were concealed collided with a tractor trailer near Holtville, California.    

As detailed in pleadings filed prior to the sentencing hearing, Cruz Noguez was a coordinator of the event in which two SUVs – a GMC Yukon and a Ford Expedition – were modified by removing the seats in the passenger compartments so that undocumented migrants literally could be stacked on top of one another.  Based on admissions made by Cruz Noguez to a cooperating source of information whom he tried to recruit to drive one of the load vehicles, he was responsible for organizing the event and collecting payment from the smuggled individuals.  Cruz Noguez successfully recruited at least one of the drivers for the smuggling event, and on the morning of the incursion, he himself drove the smuggling route to scout for law enforcement activity.  Meanwhile, his co-conspirators in Mexico crammed undocumented migrants into the load vehicles – at least 19 in the GMC Yukon and 24 in the Ford Expedition – and cut the international boundary fence, removing a section large enough for the vehicles to drive through. 

Once in the United States, the vehicles proceeded eastbound on Interstate 8 towards a predetermined location.  However, the cabin of the GMC Yukon eventually began filling with smoke, and the vehicle caught fire.  The driver stopped the vehicle and fled on foot, leaving the smuggled individuals to fend for themselves. Nineteen of them were subsequently found hiding nearby, although it is believed that others were able to avoid apprehension.  Meanwhile, the Ford Expedition and its 24 occupants continued driving eastbound towards Holtville, California. At the intersection of Norrish Road and Highway 115, the Ford Expedition collided with a tractor-trailer in a horrific accident, killing 13 of the undocumented migrants and seriously injuring many of the survivors. Further demonstrating his callousness, the defendant told the source of information in the days following the smuggling event that he was attempting to collect payment from the smuggled aliens who survived the incident and were not apprehended by law enforcement.

The sentencing hearing was held before U.S. District Judge Cathy Ann Bencivengo. Two of the survivors of the collision spoke and explained the terrible impact the tragedy has had on their lives.  Before handing down the 15-year sentence, Judge Bencivengo determined that Cruz Noguez played an aggravated role in the smuggling event and noted that in her more than a decade of experience sentencing people for human trafficking offenses, this case was particularly “tragic and heartbreaking” and “among the worst of cases I have seen.”  Judge Bencivengo went on to state, “People who engage in human trafficking of this nature are monstrous and cruel…These people were treated like human cargo…jammed into two cars to maximize the profit margin that the traffickers could make by putting as many people as possible into vehicles…with no concern about their health and safety.”  Judge Bencivengo expressed her hope that the statutory maximum sentence would “be a message to the trafficking community that, when you engage in this kind of gross behavior, there are serious consequences.”

“Cruz Noguez organized one of the most callous and inhumane smuggling attempts that law enforcement has responded to in this district,” said U.S. Attorney Randy Grossman. “He and his co-conspirators treated these individuals like a worthless commodity. They were crammed into vehicles like sardines in a can, stacked one on top of another without seats or any form of safety restraints. Our office and our agency partners will not tolerate such heinous conduct and were determined to seek justice for these offenses.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“Today’s sentencing serves as our promise to use every tool in HSI’s arsenal, in every corner of the globe, to investigate and dismantle human smuggling networks,” said Chad Plantz, special agent in charge for HSI San Diego. “Human smuggling is dangerous but as this case demonstrates, it’s also deadly. HSI will not stop investigating and bringing smugglers to court to face justice. There can be no safe haven for smugglers who evade our nations laws, are senselessly greedy and recklessly dangerous resulting in deaths.”

“This horrific tragedy was senseless and horrible beyond belief,” said El Centro Sector Chief Gregory Bovino. “The United States Attorney’s Office brought the defendant to justice, and the efforts of the prosecution team, plus those of Homeland Security Investigations, the California Highway Patrol, and others, signify that smugglers and traffickers of humans will face maximum consequences.”

DEFENDANTS                                             Case Number 21CR1277-CAB                                            

Jose Cruz Noguez                                           Age: 49                               Mexicali, Mexico

Froylan Cortez Avalos (fugitive)                   Age: 49                                   Mexicali, Mexico

SUMMARY OF CHARGES

Conspiracy to Bring in Undocumented Migrants

Title 8, U.S.C., Section 1324(a)(1)(A)(i) and (v)(I)

Maximum penalty:  Ten years in prison and $250,000 fine

Bringing in Undocumented Migrants 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 in prison and $250,000 fine

AGENCIES

Homeland Security Investigations

United States Border Patrol

California Highway Patrol

Imperial County Sheriff’s Office

NEWS RELEASE SUMMARY – July 12, 2023

SAN DIEGO – Jesus Jeovanny Alcaraz-Valdez was sentenced in federal court today to 60 months in prison for bringing in nearly a dozen undocumented migrants for financial gain and ramming a Coast Guard vessel in an attempt to escape law enforcement.

At the sentencing hearing, U.S. District Judge Jinsook Ohta described Alcaraz’s actions as “extremely reckless and extremely troubling” and emphasized the danger to human life.

During the early morning hours of December 17, 2022, Alcaraz shuttled an estimated 12 undocumented migrants from Mexico across the maritime boundary line to the vicinity of the Hotel Del Coronado in Coronado, California. Before reaching shore, Alcaraz instructed the individuals to remove lifejackets and enter waist-deep surf, even though some could not swim. Eight individuals were apprehended by U.S. Border Patrol agents while four persons were assessed to have absconded. The individuals from Mexico and Guatemala were paying between $13,000 and $24,000 to be smuggled into the United States illegally.

The U.S. Coast Guard Joint Harbor Operations Center observed Alcaraz complete the drop-off near Coronado and return to sea on a southerly course toward Mexico. Responding to the event, a U.S. Coast Guard vessel patrolling in the area attempted to compel Alcaraz—the sole operator of the lights-out, panga-style vessel operating at 30-40 knots—to stop.  Alcaraz repeatedly ignored the orders of the Coast Guard. Ultimately, after a brief respite from chase while Alcaraz switched fuel barrels, Alcaraz increased speed and steered directly toward the Coast Guard vessel, ramming them twice with his vessel’s pointed bow.

The first ramming hit the middle of the Coast Guard vessel, while the second caused the forward starboard window of the Coast Guard vessel to shatter to pieces and nearly hit a Coast Guard officer positioned in the co-pilot’s seat. After the ramming, the Coast Guard fired two shots into the panga’s outboard engine, successfully disabling it. All four law enforcement officers on board sustained minor neck and back injuries as a result of the ramming and were treated by medical personnel once safely ashore.  

Alcaraz was arrested on December 17, 2022 and indicted in January 2023. He pleaded guilty to 12 counts in March 2023.

“Maritime smuggling is extremely dangerous and puts the lives of the passengers being smuggled, and the law enforcement officers safeguarding our borders, at serious risk,” said U.S. Attorney Randy Grossman. “This defendant not only endangered the individuals he transported by operating an overloaded panga in the dark with no navigation lights, but he double downed on his bad decision-making when he intentionally harmed members of our Coast Guard. The U.S. Attorney’s Office will continue our efforts to relentlessly pursue justice against smugglers who have no regard for human life and who assault our law enforcement agency partners.” Grossman thanked the prosecution team and the combined efforts of the Marine Task Force, HSI, and CGIS for their excellent work on this case.

“Our highest concern during any mission is the safety of our Coast Guard members,” said Rear Admiral Andrew Sugimoto, Commander, Coast Guard District 11. “When their safety becomes threatened, it becomes clear that these smugglers are operating with a disregard for life. As a service, we will continue to put people first and hold those individuals accountable who continue to jeopardize human life.”

DEFENDANT                                                           Case Number 23cr0057-JO                              

Jesus Jeovanny ALCARAZ-Valdez                           Age: 33                             Mexico

SUMMARY OF CHARGES

Counts 1-3: Bringing in Certain Aliens for Financial Gain – Title 8, U.S.C., 1324(a)(2)(B)(ii)

Minimum penalty: Five years in prison

Maximum penalty: Fifteen years in prison

Counts 7-10: Assault on a Federal Officer – Title 18, U.S.C., 111(a)(1) and (b)

Maximum penalty: Twenty years in prison

Counts 11-14: Assault Within Special Maritime and Territorial Jurisdiction – Title 18, U.S.C., 113(a)(2)

Maximum penalty: Ten years in prison

Count 15: Failure to Heave To – Title 18, U.S.C., 2237

Maximum penalty: Five years in prison

AGENCY

United States Coast Guard

Homeland Security Investigations

Coast Guard Investigative Service

United States Border Patrol

Air and Marine Operations (CBP)

NEWS RELEASE SUMMARY – July 11, 2023

SAN DIEGO – Constantin Sandu of Romania pleaded guilty in federal court today, admitting that he masterminded a scheme to steal more than $5 million in California unemployment insurance benefits intended to help workers impacted by the pandemic.

According to his plea agreement, Sandu conspired with an uncharged co-conspirator identified as “D.C.” plus 213 unnamed Romanian co-conspirators across California and in Romania to fraudulently obtain millions of dollars in California unemployment insurance benefits 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. Sandu wired $16,000 of proceeds from the fraud to Romania to renovate his house.

In a forfeiture addendum, Sandu agreed to forfeit $214,950 of proceeds that he personally received from the offenses.

“This defendant has admitted to presiding over a vast network of people who exploited a program that was meant to help Californians during the pandemic,” said U.S. Attorney Randy Grossman. “The scheme alleged in this case diverted millions of dollars from those who truly needed it. We will continue to zealously prosecute perpetrators of COVID relief fraud.” Grossman thanked the prosecution team and the investigating agencies for their excellent work on this case.

“I am extremely proud that San Diego’s law enforcement partners were able to successfully apprehend Sandu,” said FBI San Diego Field Office Special Agent in Charge, Stacey Moy. “Unfortunately, this was an elaborate scheme that involved many alleged fraudsters. We will continue to tirelessly work to bring all those involved to justice.”

“Millions of dollars of unemployment benefits and pandemic-related aid were fraudulently obtained by individuals who falsified information and redirected the funds for their own personal gain,” said Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation Los Angeles Field Office. “Constantin Sandu is now being held accountable for this $5 million scheme. IRS-CI will not tolerate criminal networks that prey on vulnerable communities and exploit resources meant for those in need. IRS-CI is committed to working with our law enforcement partners locally and internationally to locate and hold criminal organizations accountable for their crimes.”

The plea agreement said that beginning in July 2020 and continuing until late summer of 2022, Sandu and hundreds of unnamed co-conspirators, including the one identified as D.C., learned and developed a process to receive the most benefits possible by using fraudulent identifications, falsified utility bills, falsified earnings statements, falsified W2s, fraudulent health insurance cards and non-existent companies. Additionally, Sandu learned to “backdate” or modify the EDD applications with an earlier unemployment start date to generate even bigger pay days.

Co-conspirators across California would share information, knowledge and resources with Sandu, for Sandu to file claims for regular unemployment insurance and expanded pandemic unemployment insurance benefits from California EDD. Co-conspirators communicated with Sandu via Facebook or other electronic means or met with him in person to provide their Personal Identifying Information, known as PII.

According to the California Franchise Tax Board, none of the companies named in the various W2s submitted for conspirators’ EDD applications was real. According to Blue Cross Blue Shield, none of the member identification numbers submitted for conspirators’ EDD applications was real.

In total, Sandu conspired with D.C. and unnamed co-conspirators to fraudulently obtain no less than $5,207,687 in California unemployment insurance benefits.

Sandu is scheduled to be sentenced on October 16, 2023, at 10 a.m. before U.S. District Judge Larry Burns.

DEFENDANT                                               Case Number: 23-cr-00386-LAB

Constantin Sandu, aka Bobi Sandu, aka Ionut Mihai             Age: 33                     Transient, Romanian

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 

INVESTIGATING AGENCIES

Federal Bureau of Investigation

San Diego Police Department Economic Crimes Unit

Internal Revenue Service

California Employment Development Department Investigative Division

Homeland Security Investigations

Department of Labor Office of Investigator General

NEWS RELEASE SUMMARY – July 11, 2023

SAN DIEGO – University City Dermatologist Mona Zohdi Mofid was sentenced in federal court today to two years’ probation after pleading guilty in April to misdemeanor hoarding of N95 respirator masks that had been designated scarce during the COVID-19 pandemic.

Her son, Adam Zohdi Mofid, who previously pleaded guilty to misdemeanor accumulation of N95 respirator masks to sell for price-gouging prices was also sentenced to two years’ probation, including 60 days of home confinement. Additionally, Adam Mofid was fined $1.2 million dollars, and Dr. Mona Mofid was fined $100,000. Both were ordered to perform 200 hours of community service.

Throughout 2020 and into early 2021, the COVID-19 pandemic caused the demand for N95 respirator masks to explode far beyond their supply. In response, on March 25, 2020, N95 respirator masks and other personal protective equipment items were designated as scarce pursuant to the Defense Production Act of 1950 (DPA), which authorizes the president to do so during times of national emergency. This triggered the DPA’s criminal anti-hoarding and anti-price-gouging provisions found at Sections 4512-4513 of Title 50 of the United States Code.

According to Dr. Mona Mofid’s plea agreement, from May 2020 to January 2021, she willfully purchased over 375,000 N95 respirator masks from medical supply companies despite knowing that doing so was unlawful at the time. Adam Mofid admitted in his plea agreement that during the same time period his company, Clinical Supplies USA, generated approximately $15,760,000 of gross income, mostly through the sale of N95 masks that were sold for, on average, 300 percent to 400 percent of their purchase price. For instance, on June 10, 2020, Clinical Supplies USA sold an individual 20 3M Model 8200 N95 masks for $16.99 per mask and 20 3M Model 8210Plus N95 masks for $17.99 per mask. Adam Mofid further admitted that he knew such sales in excess of prevailing market prices were illegal during that period of time.

“While many in our community, especially healthcare providers, responded valiantly to COVID-19, some people took advantage of the pandemic,” said U.S. Attorney Randy S. Grossman. “These defendants are paying the price for selling medical supplies at inflated prices during a national crisis.” Grossman thanked the prosecution team and the FBI for their excellent work on this case

“As the severity of the pandemic became apparent in our community and so many others, Mona and Adam Mofid sought to take advantage of the world-wide crisis, and gain an unfair advantage, by stockpiling these vital products and selling them for price-gouging prices to facilitate their greed,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “In particular, Dr. Mofid’s hoarding of such sought-after medical products transgressed her oath as a physician to do no harm. The FBI and our law enforcement partners will continue to hold price gaugers accountable and bring them to justice.”

DEFENDANTS                                             Case Number 23cr530-DDL                           

Mona Zohdi Mofid                                         Age: 51                                   La Jolla, CA

Case Number 23cr550-DDL

Adam Zohdi Mofid                                         Age: 21                                   St. Louis, MO

SUMMARY OF CHARGES

Defense Production Act – Title 50, U.S.C., Sections 4512-4513

Maximum penalty: One year in prison and fine of greatest of $100,000 or twice the gross pecuniary gain

AGENCY

Federal Bureau of Investigations

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

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.

NEWS RELEASE SUMMARY – July 10, 2023

SAN DIEGO – Nine2Five LLC and its owner, Sebastian Guthery, pleaded guilty in federal court today to felony crimes related to the illegal importation of kratom, an opioid-like plant, and the subsequent laundering of proceeds from the sale of the illegally imported product.

Mitragyna speciosa, commonly known as kratom, is indigenous to Southeast Asia. Its leaves, when ingested, have both narcotic and stimulant-like effects. According to the U.S. Food and Drug Administration (FDA), the use of kratom is associated with serious health risks, including but not limited to seizures, liver damage, addiction, and death. Side effects may also include respiratory depression, nervousness, agitation, aggression, sleeplessness, hallucinations, delusion, tremors, loss of libido, constipation, nausea, vomiting, and severe withdrawal signs and symptoms.

 On February 28, 2014, the FDA issued Import Alert 54-15, which directed inspectors to detain products that appeared to contain kratom as well as named product from specified firms without inspection, and to deny them entry into the United States. The Import Alert stated that the FDA had determined kratom to be a new dietary ingredient under section 413(d) of the Act, and deemed products intended for human consumption containing kratom to be adulterated food under section 402(f)(1)(B) of the Act because there was inadequate information to provide reasonable assurance that the new dietary ingredient kratom did not present a significant or unreasonable risk of illness or injury. This Import Alert remains in effect.

In pleading guilty, defendant Guthery admitted that, as the owner and operator of Nine2Five LLC, he caused the importation of 9,800 kg of kratom from Indonesia through a consignee named Middleton Central, LLC, by means of an invoice which falsely declared the product to be Flora Food Botanical Soil Conditioner (Eucheuma spinosum)/fertilizer, without reasonable cause to believe that was true. The invoice submitted on May 16, 2018, with the entry package, stated that the value of the goods was $61,728.

Defendant Nine2Five, LLC, in pleading guilty to money laundering, admitted that a Nine2Five, LLC. employee wired $60,000 from an account of Nine2Five, LLC at Wells Fargo Bank in San Diego, California, to Bank Mandiri in Indonesia for the cost of the purchase, transportation and importation of kratom from Indonesia on May 15, 2018. The funds constituted criminally derived proceeds of the illegal importation of kratom in the manner acknowledged by Guthery in his plea, which constituted a violation of Title 18, United States Code, Sections 542 and 545.

“Making false declarations about the nature of products imported into the United States will not be tolerated,” said U.S. Attorney Randy Grossman. “The Department of Justice and our agency partners are committed to protecting our nation from importation crimes and related offenses.” Grossman thanked the prosecution team plus the Internal Revenue Service, Homeland Security Investigations, and Customs and Border Protection agents for their excellent work on this case.

“HSI San Diego is deeply immersed in the global fight against illegal importation and money laundering,” said Chad Plantz, special agent in charge for HSI San Diego. “Attempting to smuggle even more harmful substances into our communities will not be tolerated. Further, deceiving law enforcement is illegal and by doing so only increases the severity of penalties. HSI is actively engaged with law enforcement partners and task forces to bring perpetrators who knowingly and willingly break the law to justice.”

“Sebastian Guthery and Nine2Five LLC went unchecked by mislabeling imports of kratom to evade detection and inspection by U.S. authorities and laundering the criminally derived proceeds internationally to purchase more kratom.  The import laws and regulations are in place to protect our citizens and our nation,” said Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation Los Angeles Field Office. “This should put the kratom industry on notice, illegally importing products into the United States for your own financial gain is a crime and disregarding U.S. import laws and import alerts will not go unnoticed, you will be held accountable.”

Sentencing for both defendants is scheduled to take place on October 6, 2023 at 9:30 a.m. before U.S. District Judge Todd W. Robinson.

DEFENDANTS                                             Case Number 23cr179-TWR                          

Nine2Five, LLC                                                          Formed: 2012                          Carlsbad, CA

Sebastian Guthery                                                       Age: 40                                   Carlsbad, CA

SUMMARY OF CHARGES

Defendant Sebastian Guthery

Entry of Goods by Means of False Statement – Title 18, U.S.C., Section 542

Maximum Penalty: Two years in prison and/or $250,000 fine

Defendant Nine2Five LLC

Money Laundering – Title 18, U.S.C., Section 1957

Maximum penalty: Five years of probation and $500,000 fine for an organization

AGENCIES

Internal Revenue Service

Homeland Security Investigations

Customs and Border Protection

Nehemiah Joel Weaver—who used the stolen identities of UCSD undergraduate students to commit bank and Covid-related frauds and then threatened someone he believed was working to expose his crimes—was sentenced in federal court to 46 months in prison and ordered to pay $225,392 in restitution to victims.

Weaver pleaded guilty in September 2022 to bank fraud, mail fraud, wire fraud and aggravated identity theft charges.  He admitted to using the identities of at least 15 people, a group that included UCSD students, his former supervisor, and a former girlfriend. Weaver’s co-defendant, Mia Nikole Bell, admitted to stealing the student identities in her capacity as a UCSD employee and to providing them to Weaver.  She was sentenced in December 2022 to four months in custody and was ordered to pay $16,480 in restitution.

Weaver further admitted in his plea agreement that he initially used some of the identities to open accounts and take out loans in the victims’ names at a credit union.  Months later, he used the identities to obtain over $200,000 in Covid-related unemployment benefit payments from California and Arizona. 

When Weaver learned of law enforcement’s investigation into his fraud, he sent threatening text messages to a perceived cooperating witness—including one in which he claimed to have “[p]aid good money” to have them killed.

Weaver also sent these text messages to the supposed cooperating witness: “NO MERCY!” “How long do you think you will be safe for? You are just a sitting duck[.]” “Lol so dead you don’t even know it yet[.]” “Can’t wait to see the look on your face. Paid good money to see it.”

In imposing the sentence, U.S. District Judge Gonzalo P. Curiel noted Weaver was on probation for felony identity theft convictions when he committed these new crimes. The judge noted the harm, anger, and fear that identity theft causes victims and observed that Weaver defrauded government agencies that exist to help people.  Judge Curiel ordered the forfeiture of cash and the luxury vehicle that investigators seized from Weaver. 

“Mr. Weaver used stolen identities to defraud critical state agencies that sought to help Americans during the early stages of the COVID-19 pandemic,” said United States Attorney Randy S. Grossman. “This office will continue to work with our federal, state, and local agency partners in the investigation of such crimes and the pursuit of justice for victims.”

  Grossman thanked the prosecution team, the United States Secret Service and the San Diego Police Department for their excellent work on this case.

“Today’s sentencing is an example of our dedication and commitment to protecting the American financial system and targeting those who, by fraudulent means, seek to exploit and profit from government assistance programs,” said Special Agent in Charge Jason Reynolds, San Diego Field Office, U.S. Secret Service. “We, along with our law enforcement partners, are committed to pursuing justice and holding criminals accountable for their actions.”

As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, Congress provided new unemployment benefits for those affected by the COVID-19 Pandemic who would not otherwise qualify for unemployment insurance.  The EDD administers unemployment insurance benefits in California, and DES does the same in Arizona.

If you think you are a victim of COVID-19 fraud, immediately report it the FBI (visit ic3.gov, tips.fbi.gov, or call 1-800-CALL-FBI or the San Diego FBI at 858-320-1800.  In addition, the public is urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at disaster@leo.gov.

DEFENDANTS                                            Case Number 21-CR-2722-GPC                            

Nehemiah Joel Weaver                                               Age: 37                                   San Diego, CA

Mia Nikole Bell                                                          Age: 32                                   Houston, TX

SUMMARY OF CHARGES

Bank Fraud – Title 18, U.S.C., Section 1344(1)

Maximum penalty: Thirty years in prison; $1 million fine or twice the pecuniary gain/loss

Mail Fraud – Title 18, U.S.C., Section 1341

Maximum penalty: Twenty years in prison; $250,000 fine or twice the pecuniary gain/loss

Wire Fraud – Title 18, U.S.C., Section 1343

Maximum penalty: Twenty years in prison; $250,000 fine or twice the pecuniary gain/loss

Aggravated Identity Theft – Title 18, U.S.C., Section 1028A

Mandatory minimum two years in prison

AGENCIES

United States Secret Service

San Diego Police Department

NEWS RELEASE SUMMARY – July 3, 2023

SAN DIEGO – U.S. Customs and Border Protection Officer Leonard Darnell George was charged in an indictment unsealed today with accepting bribes to allow vehicles containing drugs such as fentanyl and methamphetamine to pass through the border into the U.S.

In addition, George is charged along with Mario Angel Gutierrez, Esteban Galvan and four other unnamed defendants with conspiracy to import and conspiracy to distribute controlled substances in the Southern District of California and elsewhere.  According to the indictment and other public records, the defendants allegedly coordinated the smuggling of methamphetamine, fentanyl, cocaine, and heroin from Mexico with an ultimate destination of the United States.

Officer George is charged separately with receiving bribes. The indictment alleges that he did directly and indirectly corruptly demand, seek, receive, accept, and agree to receive items of value in return for being induced to permit narcotics laden vehicles entry into the United States in violation of his official duties, that is failing to enforce controlled substances and customs laws of the United States. 

Gutierrez is charged separately with possession of a firearm in furtherance of a drug trafficking crime.

“The indictment alleges that Officer George broke the very drug trafficking laws that he was supposed to enforce,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office and our agency partners in the Southern District of California are committed to rooting out and punishing corruption.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“This significant arrest demonstrates great teamwork and coordination by HSI and its federal law enforcement partners to dismantle transnational criminal organizations and root out alleged corruption in our government,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “HSI is committed to protecting our homeland and the people of this country.”

“The Department of Homeland Security Office of Inspector General will continue to work closely with our law enforcement partners to aggressively investigate all allegations of corruption.  Today’s arrest reinforces our commitment to protecting the integrity of DHS personnel, programs, and operations,” said Homeland Security Inspector General Joseph V. Cuffari, Ph.D.

“It is the responsibility of all government employees to operate with the utmost integrity and do their best to foster and maintain the public's trust,” said FBI San Diego Field Office Special Agent in Charge Stacey Moy. “Anyone who violates that trust will be held accountable for their actions.”

“The vast majority of CBP officers are highly skilled, hard-working professionals dedicated to our mission of protecting the American public and we do not stand for those that would tarnish our badge,” said Sidney Aki, Director of Field Operations for CBP in San Diego. “The San Diego Field Office will cooperate fully as the case proceeds.”

A detention hearing is scheduled for July 6, 2023, at 10 a.m. before U.S. Magistrate Judge Barbara Major.

SUMMARY OF CHARGES                                    Case Number 23CR1291

Receiving Bribe by Public Official – Title 18, U.S.C., Section 201

Maximum penalty: Fifteen years in prison

Conspiracy to Import Controlled Substances – Title 21 U.S.C., Sections 952, 960, 963

Maximum penalty: Life in prison with a 10-year mandatory minimum

Conspiracy to Distribute Controlled Substances – Title 21 U.S.C., Sections 841(a)(1), 846 

Maximum penalty: Life in prison with a 10-year mandatory minimum

Possession of Firearm in Furtherance of a Drug Trafficking Crime – Title 18 U.S.C. § 924(c)

Maximum penalty: Consecutive five-year mandatory minimum

AGENCIES

Federal Bureau of Investigation (FBI)

Department of Homeland Security – Office of Inspector General (DHS OIG)

Homeland Security Investigations (HSI)

Customs and Border Protection – Office of Professional Responsibility (CBP OPR)

Drug Enforcement Administration (DEA)

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

NEWS RELEASE SUMMARY – June 27, 2023

SAN DIEGO – Donald Felix Zampach of Poway pleaded guilty in federal court today to money laundering and social security fraud, admitting that he fraudulently concealed his mother’s death for decades and that he received and then laundered hundreds of thousands of dollars in government benefits intended for her, that should have ceased upon her death.

According to his plea agreement, Zampach’s mother died in Japan in 1990, and 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 Finance Accounting Service. Just before his mother’s death, Zampach fraudulently conveyed her Poway home and filed for Chapter 7 personal bankruptcy, disclosing neither his ownership of the Poway home nor the government benefits payments he was receiving. After his mother’s death, Zampach maintained her bank accounts, forged her signature on certificates of eligibility to keep her government benefits in pay, and filed forged federal income tax returns, posing as his mother, for over two decades. 

Zampach admitted that between November 1990 and September 2022, he received at least $830,238 in stolen public money intended for his mother. Zampach also admitted to using his mother’s identity to fraudulently open credit accounts with at least nine different financial institutions, causing them to suffer a loss of more than $28,000. Zampach admitted to laundering the stolen money to pay off the mortgage on his Poway home, in order to conceal both his ownership of the Poway home and the fact that the money he used constituted criminal proceeds of his fraud.

Under the terms of his plea agreement, Zampach has agreed to pay more than $830,000 in criminal forfeiture, including the forfeiture of his Poway home to make restitution for his crimes.

“This crime is believed to be the longest-running and largest fraud of its kind in this district,” said U.S. Attorney Randy Grossman. “This defendant didn’t just passively collect checks mailed to his deceased mother. This was an elaborate fraud spanning more than three decades that required aggressive action and deceit to maintain the ruse. He filed false income tax returns, posed as his mother and signed her name to many documents, and when investigators caught up to him, he continued to claim she was still alive. As a result of this fraud, he received more than $800,000 in stolen public money. For his deceit, he will face justice.” Grossman thanked the prosecution team and investigating agencies for their diligence.

“For more than three decades, Mr. Zampach failed to report the death of his mother to the Social Security Administration (SSA) and used more than $250,000 in benefits for himself,” said Gail S. Ennis, Inspector General for SSA. “We will continue to pursue and hold those accountable who defraud SSA. I want to thank the U.S. Attorney’s Office and Special Assistant U.S. Attorney Jeffrey D. Hill for prosecuting this case.”

“Mr. Zampach's guilty plea is an acknowledgement of his decades-long identity theft scheme in which he benefited financially from the theft of Department of Defense (DoD) and Social Security retirement benefits,” said DoD Inspector General Robert P. Storch.  “The DoD Office of Inspector General, through the Defense Criminal Investigative Service, stands together with our law enforcement partners and the Department of Justice to hold accountable those who choose to engage in beneficiary fraud, particularly as it relates to the DoD.”

Zampach was released on bail pending his sentencing hearing, which is scheduled before U.S. District Judge Cathy Ann Bencivengo on September 20, 2023, at 9:00 a.m.

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

NEWS RELEASE SUMMARY – June 15, 2023

SAN DIEGO - El Cajon resident and businessowner Anthony Duane Bell, Sr., pleaded guilty in federal court today, admitting that he fraudulently received more than $21 million in Medicare payments. His son and namesake, Anthony Duane Bell, Jr., admitted making false statements to the FBI to conceal the fraudulent scheme.

As part of his guilty plea, Bell, Sr. agreed to pay $21,725,604.56 in restitution to Medicare and forfeit $806,375.12 and a multi-million-dollar luxury house in El Cajon. 

According to court records, the Bells created companies known as Universal Medical Solutions 1 and Universal Medical Solutions 2, with locations in Santee and San Diego. The companies supplied durable medical equipment like knee, ankle, wrist, shoulder, and back braces. The Bells obtained customers for their companies by paying thousands of dollars in kickbacks to “marketing” companies. To obtain the prescriptions, the marketing companies paid doctors for the medically unnecessary prescriptions for braces.  The Bells sought to conceal their fraudulent kickback scheme by entering into sham “marketing” agreements and other contracts.  In truth, the Bells were paying a set fee per brace to purchase the patients.  The Bells would then send the braces to the Medicare beneficiaries and bill Medicare for the medically unnecessary braces.  The Bells paid significantly less for the braces than they billed Medicare. 

When Bell Jr. was interviewed by the FBI, he falsely stated that he had never heard of PA Healthcare Pharmaceuticals, a provider of durable medical equipment and his former employer.

“Fraudulent conduct that exploits the Medicare system erodes public support for this important program and squanders taxpayer resources,” said U.S. Attorney Randy Grossman. “I am grateful to our prosecution team and agency partners for their efforts to bring these crimes to justice.”

“Medicare is an essential government program that is supposed to assist some of our most vulnerable citizens with getting the healthcare they need. It should not be used as a ‘get rich’ scheme by scammers,” said FBI San Diego Acting Special Agent in Charge, Thomas Ryan. “People who exploit government programs to attempt to mask their malicious acts will continue to be investigated and held accountable by the FBI and our law enforcement partners.”

The Bells are scheduled to be sentenced on January 8, 2024, at 9 a.m., before U.S. District Judge William Q. Hayes. 

The investigation was conducted by the Federal Bureau of Investigation, Department of Health and Human Services, and United States Marshal’s Service.  The case is being prosecuted by Assistant U.S. Attorneys Valerie H. Chu and Christopher M. Alexander of the Southern District of California. 

DEFENDANTS                                             Criminal Case No. 20CR2887-WQH

Anthony Duane Bell Sr.                                 Age: 54                       El Cajon, California

Anthony Duane Bell Jr.                                  Age: 33                       Los Angeles, California

SUMMARY OF CHARGES

Health Care Fraud, a felony, in violation of Title 18, United States Code, Section 1347

Maximum Penalty:  Ten years in custody; $250,000 fine

False Statement, a felony, in violation of Title 18, United States Code, Section 1001

Maximum Penalty:  Five years in custody; $250,000 fine

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Department of Health and Human Services, Office of Inspector General

United States Marshal’s Service

NEWS RELEASE SUMMARY – June 22, 2023

SAN DIEGO – A federal jury has convicted brothers Joshua Yafa and Jamie Yafa, both Florida citizens, of participating in a securities fraud pump-and-dump scheme surrounding the publicly-traded stock of two small companies.

The jury found that the Yafa brothers both committed securities fraud by manipulating the market for the stock of Global Wholehealth Partners Corp. and Nunzia Pharmaceutical Corp.  According to the evidence presented at trial, the Yafas worked alongside their co-conspirators to artificially inflate the price and volume of these companies’ stocks by controlling the majority of the company’s free-trading shares through concealed nominee accounts, coordinating the company’s press releases with the issuance of penny stock newsletters, paying analysts to write rosy reports about the companies, and using call rooms, all to create a buying frenzy for the stocks among unwitting investors.

The FBI investigated this case through a combination of forensic analysis and sophisticated covert techniques, including the use of an undercover agent and an informant, both of whom gathered evidence through recorded phone conversations and captured email and text messages.

Central to the scheme were penny stock newsletters that the Yafas created and emailed to thousands of investors.  In a single six-month period, for example, the Yafas distributed 116 newsletters touting the stock of Global Wholehealth Partners. The newsletters were sent under various publication names, including OTC Tip Reporter, BuzzStocks, marketCALIBER, and Penny Stock Prophet, but the publications often carried virtually the same content, and always predicted tremendous investment returns; this despite the fact that Global Wholehealth Partners was severely underfunded and had made only a handful of sales in its entire existence. 

The conspirators focused heavily on touting Global Wholehealth Partners because the company purported to have access to an early COVID-19 testing product that it could sell to consumers. They hoped that creating excitement among investors about the company’s stock based on the pandemic would make their pump-and-dump scheme extremely profitable. 

The Yafas were just two of several defendants who were charged. Their co-conspirators, Brian Volmer and Carl Marciniak of Nevada, and Charles Strongo of Calfornia, all previously pleaded guilty in connection with the scheme.

“This verdict should send a clear message: Pump-and-dump and similar market manipulation schemes are serious crimes, and the Department of Justice will continue to hold those who engage in these schemes accountable,” said U.S. Attorney Randy Grossman.” Grossman thanked the prosecution team and FBI agents who diligently pursued this matter.

“The FBI remains committed to aggressively pursuing individuals like the Yafa brothers who intentionally degrade the integrity of the United States financial markets,” said FBI San Diego Special Agent in Charge Stacey Moy. “Market manipulation schemes can be devastating for the victims they affect, and we will continue to collaborate with our local, state and federal partners to hold those who perpetrate them accountable.”

The U.S. Attorney’s Office expresses its appreciation for assistance provided by the Securities and Exchange Commission, and FINRA’s Criminal Prosecutions Assistance Group.

Joshua and Jamie Yafa are scheduled to be sentenced on September 25, 2023.

DEFENDANTS                                 Case Number 21CR1310-WQH                                     

Joshua Yafa                                        Age: 49                                   Boca Raton, FL

Jamie Yafa                                          Age: 44                                   Kissimmee, FL

SUMMARY OF CHARGES

Securities Fraud – Title 15, U.S.C., Section 78(j)

Conspiracy to Commit Securities Fraud – Title 18., U.S.C., Section 371

Maximum Penalty: Twenty years in prison

AGENCY

Federal Bureau of Investigation

NEWS RELEASE SUMMARY – June 20, 2023

SAN DIEGO – Eduard Ghiocel and Floarea Ghiocel, married Romanian nationals and leaders of a Romania-based transnational organized crime group, pleaded guilty today to 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 agreement, Eduard and Floarea Ghiocel, along with the assistance of 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. Defendants and co-conspirators then pawned the stolen, expensive jewelry and watches for cash in jewelry stores in Los Angeles. In addition, Eduard and Floarea Ghiocel admitted to submitting fraudulent unemployment claims to the California Employment Development Department (EDD), and together with their co-conspirators received a total of approximately $32,250 in California unemployment insurance benefits intended to help workers impacted by the COVID-19 pandemic.

Eduard and Floarea Ghiocel admitted to sending cash from the jewelry thefts and the stolen unemployment insurance proceeds by wire transfers to Romania via Money Service Businesses, and using the stolen 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 Ghiocel Sub-Group sent $1,367,652.02 from illicit funds to Romania, knowing the money represented the proceeds of grand thefts  and robberies of jewelry, and California EDD fraud, the plea agreement said.

In a forfeiture addendum, Eduard and Floarea Ghiocel also agreed to forfeit assets including a white 2019 Lamborghini Urus, a black 2020 Ferrari Portofino, two gold coins worth $4,000, and $1,896.37 worth of U.S. currency. These items were seized across Valcea County, Romania on March 14, 2023 pursuant to seven Romanian search warrants issued by the Bucharest Tribunal and executed by police officers from the Romanian National Police's Directorate for Combatting Organized Crime, Service for Combatting Organized Criminal Groups, and Service for Combatting Organized Crime Valcea, assisted by FBI and IRS officers. Eduard and Floarea Ghiocel also agreed to forfeit a blue 2021 Lamborghini Urus and a BMW X4, also seized in Romania pursuant to the aforementioned warrants. After the defendants are sentenced and the forfeiture finalized, it is the intent of the U.S. Attorney to seek restoration of the forfeited properties to pay restitution to victims.

The co-conspirators remain at large in Romania.

“These defendants led an international crime ring that stole beloved personal items from elderly victims,” said U.S. Attorney Randy Grossman. “They thought that seniors would be easy marks, but the plan has backfired. Our prosecution team and agencies followed the organized crime group’s trail all the way to Romania to assist in the seizure of assets laundered from stolen jewelry and pandemic funds in California.”

Grossman thanked the prosecution team and agencies along with their international partners for their inexhaustible efforts to bring justice for these victims.

“This scheme is egregious because it specifically targeted our most vulnerable citizens,” said FBI San Diego’s Special Agent in Charge Stacey Moy. “The FBI is allocating as many resources as possible to identify and bring to justice individuals who are preying on our older adult population.”

“Too many people suffer at the hands of this type of organized crime,” said San Diego Police Chief David Nisleit. “We will continue working with our law enforcement partners to hold these criminals and their co-conspirators accountable.”

“While most people were worrying about how to stay healthy and protect their loved ones during the height of the pandemic, Eduard Ghiocel and Floarea Ghiocel were busy victimizing the elderly within our communities and targeting relief programs. They will now face the consequences of their crimes and their flagrant disregard for our communities,” said Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation Los Angeles Field Office. “Investigating individuals and organizations that prey on vulnerable communities and exploited the CARES act is one of our top priorities.  IRS-CI will continue to work closely with our law enforcement partners locally and internationally to locate and hold criminal organizations accountable for their crimes.”

Assistance was provided by the Romanian National Police (Service for Combatting Organized Criminal Groups and Service for Combatting Organized Crime Valcea) and the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime). The Justice Department’s Office of International Affairs also provided significant assistance.

The couple is scheduled to be sentenced on August 21 at 10 a.m. before U.S. District Judge Larry Burns.

DEFENDANTS                                         Case Number: 23-cr-00650-LAB

Eduard Ghiocel (1)                                         Age: 47                     Transient, Romanian

    aka Eduard Alexandru, aka “Filica”                        

Floarea Ghiocel (2)                                         Age: 48                     Transient, Romanian

   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

INVESTIGATING AGENCIES

Federal Bureau of Investigation

San Diego Police Department

Internal Revenue Service

California Employment Development Department Investigative Division

U.S. Department of Homeland Security

Department of Labor Office of Investigator General

SAN DIEGO - Felix Luciano, the former President of Local 2805 chapter of the American Federation of Government Employees and former Department of Homeland Security officer, pleaded guilty in federal court today, admitting he filed a false report to conceal his embezzlement of thousands of dollars in union dues.

Local 2805 is a labor union which represents Department of Homeland Security, Immigration and Customs Enforcement employees in San Diego and Imperial Counties. Additionally, Luciano agreed to pay a $10,000 fine and repay Local 2805 $36,000 as money that he embezzled.

According to court records, Luciano was president of Local 2805.  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, who are the backbone of our community, devote their hard-earned money to labor unions, they rightly expect the officers to be honest stewards of their dues,” said U.S. Attorney Randy Grossman. “Felix Luciano abused the trust of the ICE government employees represented by Local 2805 by using the union’s money for his own personal benefit and enrichment, and then filed a false financial report that concealed the misappropriation of those funds.” Grossman thanked the prosecution team and investigation agencies for their work on this case.

“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.” 

Luciano is scheduled to be sentenced on September 15, 2023 at 9:00 a.m. before U.S. District Judge Jinsook Ohta. 

DEFENDANT                       Case No. 22CR2201-JO

Felix Luciano                          Age: 61                       San Diego, California

SUMMARY OF CHARGE

False Statement, a felony, in violation of Title 18, United States Code, Section 1001.

Maximum Penalty:  Five years in custody; a fine of $250,000 

INVESTIGATING 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

NEWS RELEASE SUMMARY – June 14, 2023

SAN DIEGO – Keenon Green, who used social media to try to recruit someone he believed was a 16-year-old female into prostitution, was sentenced today in federal court to144 months in prison.

A jury convicted Green of Attempted Sex Trafficking of Children and Attempted Enticement of a Minor after a three-day jury trial in February.

According to evidence presented at trial, from December 16, 2021, to January 14, 2022, Green used Instagram direct messages and cell phone text messages to lure into prostitution a social media user he knew as “Lexi,” who told him she was 16 years old. 

Green promised to provide protection for Lexi on “the blade,” a slang term that refers to an area where prostitutes/sex workers solicit sex-buyers. He also promised to get her a false identification and post commercial sex advertisements for her online.  He assured her that she could “charge 350 a hour and only be in there 30 mins max.”  He even offered to teach her how to drive. And in return, he expected Lexi to earn $500 a night as a prostitute, and $1,000 a night if they were out of town.

When Lexi finally agreed, he arranged to pick her up at a local park and planned to take her to Orange County to work on “the blade.”  Showing his intent to follow through on that plan, he arrived at the meeting location with feminine items in the trunk of his vehicle, including hair products and a bottle of Vagisil.  However, Lexi was not a 16-year-old female, but an undercover officer with the San Diego Sheriff’s Department, and he was greeted by law enforcement and immediately arrested. 

Evidence presented at trial, and also discussed at the sentencing hearing, demonstrated that Green’s pimping activity was not just aspirational. Post-arrest, he admitted he “ran” seven to nine other women and had earned tens of thousands of dollars, bragging that he “lives off the earnings of a prostitute.” Instagram records showed that at the same time he was enticing Lexi to work for him as a prostitute, he was attempting to recruit multiple other women on Instagram, telling them that their “anatomy is the most valuable thing on this earth” and that he could help them “use it wisely.” Green also was not above using violence and threats of violence to keep his prostitutes in line. In an audio message presented at sentencing, Green repeatedly threatened one woman who was working for him as a prostitute, screaming that he would “break [her] fucking jaw,” “beat the shit out of [her],” “stomp a fucking mudhole in [her],” and “play games with [her] face.”

“The sentence imposed today recognizes the severity of the crime for which Mr. Green has been convicted,” said U.S. Attorney Randy Grossman.  “Fortunately, proactive efforts by our law enforcement partners identified Mr. Green as someone willing to exploit the most vulnerable members of our society for nothing more than his own financial gain. This case should serve as a clear warning that law enforcement will not tolerate these crimes and will do everything in our power to protect children in our communities.” Grossman thanked the prosecution team, the San Diego Human Trafficking Task Force, Homeland Security Investigations, and the San Diego Sheriff’s Department for their excellent work on this case.

“Today’s announcement is a result of strong partnerships by law enforcement agencies uniting to put a stop sexual violence and exploitation,” said California Attorney General Rob Bonta. “Today’s sentencing sends a strong message that those who engage in sex trafficking and target vulnerable youth in our communities will be held accountable to the fullest extent of the law. I want to thank my team with the San Diego Human Trafficking Task Force, the U.S. Attorney’s Office, and our local, state, and federal law enforcement partners for their collaboration in making California a safer place. When we work together, we get results. Protecting public safety is our highest priority and we won’t rest until the job is done.”

“Sex traffickers typically prey on and sexually exploit the most vulnerable population; fortunately, in this case, the defendant was speaking to a law enforcement officer – not a 16-year-old girl,” said Chad Plantz, special agent in charge for HSI San Diego. “HSI is committed to using proactive efforts to target and prevent sex trafficking offenses. Together, we can more effectively eradicate this vile criminal activity from the community.”

“The Sheriff’s Department is proud of the collaborative efforts by all involved in this investigation and prosecution. This teamwork is vitally important in targeting the people involved in this type of criminal behavior. The department is committed to these partnerships as we continue in our efforts to prevent these crimes from occurring.”

DEFENDANT                                               Case Number 22-cr-187-CAB                               

Keenon Green                                                 Age: 35                       Chula Vista                            

SUMMARY OF CHARGES

Attempted Sex Trafficking of Children – Title 18, U.S.C., Section 1591(a)

Maximum Penalty: Life in prison and $250,000 fine, with 10-year mandatory minimum

Attempted Enticement of a Minor – Title 18, U.S.C., Section 2422(b)

Maximum Penalty: Life in prison and $250,000 fine, with 10-year mandatory minimum

INVESTIGATING AGENCIES

San Diego Human Trafficking Task Force

Homeland Security Investigations

San Diego Sheriff’s Department

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.

NEWS RELEASE SUMMARY – June 13, 2023

SAN DIEGO – Vessel Chief Engineer Denys Korotkiy was convicted by a federal jury of conspiracy to obstruct justice, obstruction of justice, and failure to maintain an accurate oil record book for the vessel Donald following a five-day jury trial in San Diego.

The company that operates the vessel, Interunity Management (Deutschland) GMBH, previously pleaded guilty for maintaining false and incomplete records relating to the discharge of oily bilge water.   

The evidence showed that oily bilge water was illegally dumped from the Donald directly into the ocean through the vessel’s sewage holding tank without being properly processed through required pollution prevention equipment. Oily bilge water typically contains oil contamination from the operation and cleaning of machinery on the vessel. These illegal discharges were not recorded in the vessel’s Oil Record Book as required by law. The evidence also showed that Korotkiy made false and fictitious entries in the Oil Record Book claiming transfers of oily bilge had been made from the vessel’s engine room bilge wells to the vessel’s Bilge Holding Tank when, in fact, those transfers had not been made. Finally, the evidence showed that Korotkiy conspired with others to obstruct the United States Coast Guard’s inspection and investigation into the mishandling of oily bilge water onboard the motor vessel Donald.   

At the conclusion of the trial, the court remanded Chief Engineer Korotkiy to custody. Sentencing is scheduled for Sept. 1.

“Unlawful oil discharges can cause immeasurable harm to the marine environment,” said U.S. Attorney Randy Grossman. “We will continue to work closely with our agency partners to safeguard our oceans by vigorous enforcement of environmental laws. Today’s case is a reflection of that commitment.” Grossman thanked the prosecution team and the U.S. Coast Guard for their excellent work on this case.

“The illegal discharge of oily bilge water at sea and the falsification and destruction of records in order to obstruct the United States’ ability to investigate those discharges are crimes we take seriously,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The Department of Justice will continue to work with our partner agencies to ensure polluters are held fully accountable.”

“This prosecution highlights the Department of Justice and the U.S. Coast Guard’s dedication in safeguarding our oceans against those that seek to deliberately harm our natural resources,” said Captain James Spitler, Sector Commander, Coast Guard Sector San Diego. “Illegal dumping of oil and falsification of oil record books are egregious violations. This guilty verdict should serve as a reminder that the Coast Guard and our partners at the Department of Justice will work tirelessly to hold accountable those that seek to deliberately discharge oil and falsify records.”

In the same matter, Interunity Management (Deutschland) GMBH pleaded guilty to a felony violation of the Act to Prevent Pollution from Ships, 33 U.S.C. § 1908(a), for failing to accurately maintain the Donald’s Oil Record Book. Under the terms of the plea agreement and subject to court approval, New Trade will pay a total fine of $1.25 million and serve a four-year term of probation, during which any vessels operated by the company and calling on U.S. ports will be required to implement a robust Environmental Compliance Plan. Chief Engineer Korotkiy will be sentenced on September 1, 2023, by the Court for his role.

The plea agreement for the company requires it to pay $312,500 to the National Fish and Wildlife Foundation as a community service payment, to be used to fund research at the Tijuana River National Estuarine Research Preserve. 

This case was investigated by the U.S. Coast Guard Sector San Diego, and the U.S. Coast Guard Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Melanie K. Pierson of the U.S. Attorney's Office for the Southern District of California and Senior Trial Attorney Stephen Da Ponte of the Environmental Crimes Section of the Department of Justice.

DEFENDANT                                               Case Number 22cr2762-TWR                          

Denys Korotkiy                                              Age: 40           Ukraine

SUMMARY OF CHARGES

Conspiracy to Obstruct Justice, in violation of Title 18, United States Code, Section 371

Maximum penalty: Five years in prison and $250,000 fine

Obstruction of Justice, in violation of Title 18, United States Code, Section 1519

Maximum penalty: Twenty years in prison and $250,000 fine

Failure to Maintain an Accurate Oil Record Book, in violation of Title 33, United States Code, Section 1908(a)

Maximum penalty: Six years in prison and $500,000 fine

DEFENDANT

Interunity Management (Deutschland) GMBH

SUMMARY OF CHARGES

Failure to Maintain an Accurate Oil Record Book, in violation of Title 33, United States Code, Section 1908(a)

Maximum penalty for a corporation: Five years of probation and a fine of $500,000 or twice the gross gain or loss from the offense

INVESTIGATING AGENCIES

U.S. Coast Guard Sector San Diego, Coast Guard Investigative Service

On June 9, vessel Chief Engineer Denys Korotkiy was convicted of conspiracy to obstruct justice, obstruction of justice, and failure to maintain an accurate oil record book for the vessel Donald in San Diego, California, following a five-day jury trial. Interunity Management (Deutschland) GMBH, a vessel operating company, previously pleaded guilty for maintaining false and incomplete records relating to the discharge of oily bilge water.    

The evidence showed that oily bilge water was illegally dumped from the Donald directly into the ocean through the vessel’s sewage tank without being properly processed through required pollution prevention equipment. Oily bilge water typically contains oil contamination from the operation and cleaning of machinery on the vessel. These illegal discharges were not recorded in the vessel’s oil record book as required by law. The evidence also showed that Korotkiy made false and fictitious entries in the oil record book claiming transfers of oily bilge had been made from the vessel’s engine room bilge wells to the vessel’s Bilge Holding Tank when, in fact, those transfers had not been made. Finally, the evidence showed that Korotkiy conspired with others to obstruct the U.S. Coast Guard’s inspection and investigation into the mishandling of oily bilge water onboard the motor vessel Donald.    

At the conclusion of the trial, the court remanded Chief Engineer Korotkiy to custody. Sentencing is scheduled for Sept. 1.

“The illegal discharge of oily bilge water at sea and the falsification and destruction of records in order to obstruct the United States’ ability to investigate those discharges are crimes we take seriously,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The Department of Justice will continue to work with our partner agencies to ensure polluters are held fully accountable.”   

“Unlawful oil discharges can cause immeasurable harm to the marine environment,” said U.S. Attorney Randy Grossman for the Southern District of California. “We will continue to work closely with our agency partners to safeguard our oceans by vigorous enforcement of environmental laws. This case is a reflection of that commitment.”

“This prosecution highlights the Department of Justice and the U.S. Coast Guard’s dedication in safeguarding our oceans against those that seek to deliberately harm our natural resources,” said Captain James Spitler, Sector Commander, Coast Guard Sector San Diego. “Illegal dumping of oil and falsification of oil record books are egregious violations. This guilty verdict should serve as a reminder that the Coast Guard and our partners at the Department of Justice will work tirelessly to hold accountable those that seek to deliberately discharge oil and falsify records.”

In the same matter, Interunity pleaded guilty to a felony violation of the Act to Prevent Pollution from Ships, for failing to accurately maintain the Donald’s oil record book. Under the terms of the plea agreement and subject to court approval, Interunity will pay a total monetary penalty of $1.25 million and serve a four-year term of probation, during which any vessels operated by the company and calling on U.S. ports will be required to implement a robust Environmental Compliance Plan. The monetary penalty includes $312,500 to fund projects, activities, or initiatives intended to benefit marine and coastal natural resources located in or around the Tijuana River National Estuarine Research Reserve.

The U.S. Coast Guard Sector San Diego and the U.S. Coast Guard Investigative Service are investigating the case.

Assistant U.S. Attorney Melanie K. Pierson for the Southern District of California and Senior Trial Attorney Stephen Da Ponte of the Environment and Natural Resources Division’s Environmental Crimes Section are prosecuting the case.

NEWS RELEASE SUMMARY – June 6, 2023

SAN DIEGO – Five men were arrested and charged in connection with the theft of tens of thousands of dollars in public-assistance benefits from low-income families that need the funds to pay for food, housing and other necessities.

The defendants were arrested by a U.S. Secret Service-led task force as part of a three-day effort to crack down on this devastating and growing fraud in which California benefits are drained from recipients’ accounts almost immediately after the funds are dispersed by the state, typically early in the month. According to federal complaints, the defendants accomplished this by placing illegal devices known as skimmers on ATMs or a retailer's card-swiping machine to copy account information from state-issued Electronic Benefit Transfer (EBT) cards used by the recipients.

Two defendants – Constantin Irimia and Devonte Linell Pipkins - appeared in federal court this morning. Irimia was ordered detained; Pipkins was ordered released on a $35,000 bond secured by real property. The other defendants - Radu Grosu, Gabriel Ionita, and Richard Calin – are scheduled to appear in court Friday for detention hearings.

Ionita and Calin are codefendants; the other defendants are charged individually. All are charged with use of unauthorized access device fraud, which criminalizes the misuse of electronic account information contained on EBT cards issued to public assistance recipients in California and across the country. Three of the men were also found to be in possession of skimming devices, pinhole cameras, and tools for inserting the skimming devices into ATMs. 

One victim, a local single mother of four whose EBT account was drained in early June, said she learned that her benefits had been stolen when she went to the store later that day and found that the money she had been counting on to buy diapers and pay rent was gone.

“This kind of crime is extremely hard on people who can least afford to lose their benefits,” said U.S. Attorney Randy Grossman. “We are committed to working with all of our federal, state and local agency partners to identify perpetrators of EBT theft and relentlessly pursue justice for the victims.” Grossman thanked the prosecution team, the U.S. Secret Service and task force members for their excellent work on these cases.

“This type of fraud hurts everyday Americans who rely on government support to feed and care for their families,” said Jason Reynolds, Special Agent in Charge of the U.S. Secret Service’s San Diego Field Office. “The Secret Service is committed to protecting our nation’s financial systems from abuse, and we will continue to work alongside our law enforcement partners to ensure that those involved are held accountable.”

“The San Diego Police Department is a proud member of the USSS So-Cal Cyber Fraud Task Force and has been for over 20 years,” said San Diego Police Chief David Nisleit. “This operation targeted those taking advantage of San Diego residents who rely on public assistance for everyday needs. We are committed to this task force partnership and will continue to support any and all efforts to suppress fraud in any form throughout our city.”

“Shutting down this type of systematic fraud that steals food from the tables of families is a priority for the District Attorney’s Office,” said San Diego County District Attorney Summer Stephan. “Our office continues to be committed to providing assistance to this task force of state and federal partners who are working together to protect the most vulnerable in our community.”  

According to charging documents, here’s how the fraud works:

Benefits are distributed via electronic transfers to the state-issued EBT cards. The benefits are automatically distributed to the recipient’s EBT card on a designated day of the month - typically, in California, the first five days. The user can make cash withdrawals and payments using the card. To access their benefits to purchase eligible food items, the recipient swipes the card through a point-of-sale terminal, or inserts it into an ATM, which record the card number, date, time, and amount of the transaction. The recipient then enters his/her unique Personal Identification Number (PIN) into a keypad to complete the transaction.

According to a complaint, the U.S. Secret Service has gathered evidence indicating that members of what appear to be one or more criminal enterprises are stealing California EBT account information by installing skimmers on point-of-sale terminals, often at large-volume retailers like Walmart, in communities with higher concentrations of public benefit recipients. The skimmed data is then often re-encoded onto the magnetic strips of cards that members of the conspiracy use to make unauthorized withdrawals and purchases.

These re-encoded cards are sometimes referred to as “cloned” cards. Cloned cards can be a blank white plastic card, or another debit, credit, or gift card. Cloned cards may have names or numbers embossed on the physical face of the card. A common feature of cloned cards is that the account number encoded on the card’s magnetic strip will not match the number embossed on the card’s face. To facilitate the use of the stolen EBT benefits, members of the scheme will commonly put stickers bearing the account’s PIN on the physical cards, or access devices, that are swiped at a point-of-sale terminal, along with the account balance.

As outlined in the affidavits supporting the five arrests, individuals engaged in stealing EBT benefits have targeted point-of-sale terminals at large-volume stores in National City, Sherman Heights, and El Cajon to skim and thereby steal the EBT account information of local victims. 

According to the California Department of Social Services (CalDSS), almost $40 million has been stolen using compromised EBT account information since August 2022. Most of the stolen funds were obtained through unauthorized ATM withdrawals from victims’ CalWORKs benefits.  CalWORKS provides cash to eligible families with one or more children in the home.  Families that apply and qualify for ongoing CalWORKS assistance receive money each month to help pay for housing, food, and other necessary expenses.  CalWORKS, along with CalFresh, is distributed by CalDSS through the California Advantage EBT card.

U.S. Attorney Grossman thanked the many law enforcement partners whose work and dedication made this operation a success: The U.S. Secret Service, San Diego District Attorney’s Office, San Diego Police Department, San Diego Sheriff’s Department, U.S. Department of Agriculture’s Office of Inspector General, California Department of Social Services, Homeland Security Investigations, National City Police Department, El Cajon Police Department, Los Angeles District Attorney’s Office, and the United States Attorney’s Office for the Central District of California. 

If you or someone you know has had your EBT benefits stolen, San Diego County’s Department of Health & Human Services Agency requires that the theft be reported within 10 days.  More information for San Diego County victims is available at:  https://www.sandiegocounty.gov/content/sdc/hhsa/programs/ssp/ebt_fraud.html.  

DEFENDANT                                   Case Number                         Age                Hometown                

Constantin Irimia                                23mj01955-JLB                      40                        Iasi City, Romania

Devonte Linell Pipkins                       23mj01963-JLB                      25                        Ecorse, Michigan       

Gabriel Ionita                                      23mj01973-WVG                   35                        Bucharest, Romania

Richard Calin                                      23mj01973-WVG                   23                        Bucharest, Romania

Radu Grosu                                         23mj02000-WVG                   35                        Rockville, Maryland

SUMMARY OF CHARGES

Use of Unauthorized Access Devices – Title 18, U.S.C., Section 1029(a)(2) (All Defendants)

Maximum penalty: Ten years in prison and $250,000 fine

Possession of Access Device-Making Equipment – Title 18, U.S.C., Section 1029(a)(4) (Irimia, Ionita, Calin)

Maximum penalty: Fifteen years in prison and $250,000 fine

AGENCY

U.S. Secret Service’s Southern California Cyber Fraud Task Force

San Diego District Attorney’s Office

San Diego Police Department

San Diego Sheriff’s Department

U.S. Department of Agriculture’s Office of Inspector General

California Department of Social Services

Homeland Security Investigations

National City Police Department

El Cajon Police Department

Los Angeles District Attorney’s Office

United States Attorney’s Office for the Central District of California

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty. 

NEWS RELEASE SUMMARY – May 31, 2023

SAN DIEGO – Law enforcement officials today announced that a three-month campaign to reduce violent crime in San Diego County has resulted in the seizure of 165 firearms - including 82 privately-made weapons known as “ghost guns” - and the prosecution of 29 people.

The Privately Made Firearm Crime Reduction Project, which ran from February to May, was initiated to address gun violence and the proliferation of ghost guns in San Diego. The Bureau of Alcohol, Tobacco, Firearms and explosives (ATF) and the San Diego Police Department used data analytics to determine areas where there was an increase in gun violence and where crime guns were being recovered. ATF and SDPD employed an intelligence-led policing effort throughout the 90-day initiative to determine where to place resources to have the greatest impact.

This partnership used a multitude of investigative techniques including undercover operations, surveillance, scouring social media accounts, and using confidential informants and undercover federal agents. Law enforcement personnel risked their lives during nearly 88 operations to get these guns out of the hands of criminals and make communities safer. These operations included undercover operations, search warrants, and arrests warrants. Those primarily targeted were individuals involved in the illegal possession, manufacture and sale of firearms, particularly ghost guns bearing no serial numbers or identifying marks who were selling them to people prohibited from owning guns.

Authorities reported results of the operation at a news conference today, where ATF agents displayed 81 firearms items seized during the operation. Those weapons included machine guns; Glock Switches – which are machinegun conversion devices; short-barrel rifles; pistols and silencers. A substantial number of seized weapons were fully automatic. In addition to the firearms, investigators also recovered approximately 66 pounds of methamphetamine, 1.4 kilograms of powder fentanyl, 4,300 fentanyl pills, and 2.25 kilograms of cocaine.

To date, 22 defendants are charged in federal court and an additional seven in state court with various gun and drug crimes; four other state cases are pending. Federal gun charges include Dealing in Firearms without a License; Possession of a Machine Gun; Felon in Possession of a Firearm; Assault of a Federal Agent; Possession of a Firearm in Furtherance of a Violent Crime and Possession of a Firearm in Furtherance of Drug Trafficking. Drug charges include distribution of fentanyl, methamphetamine, and cocaine.

Last year alone, there were approximately 20,000 suspected ghost guns reported to ATF as having been recovered by law enforcement in criminal investigations – a ten-fold increase from 2016.  Because ghost guns lack the serial numbers marked on other firearms, law enforcement has an exceedingly difficult time tracing a ghost gun found at a crime scene back to an individual purchaser.

On a local level, the San Diego Association of Governments, the regional clearinghouse for crime data, received a federal grant through the Department of Justice to enhance its tracking of crimes that involve firearms around the region. This would include the use of a firearm in violent crime and providing information regarding where these crimes are occurring, tracking calls for service related to the use of firearms, and interviewing arrestees regarding their use of firearms and ghost guns.

SANDAG has reported that ghost guns have been a significant and growing challenge around San Diego County in recent years. According to SANDAG, there was a 401 percent increase in ghost guns recovered by local law enforcement agencies in San Diego County from 2019 to 2021.

In the City of San Diego, the police department reports that about one-quarter of the guns recovered at crime scenes and during investigations during 2021 were privately manufactured and lacked serial numbers.

Preliminary numbers indicate that San Diego County law enforcement seized fewer ghost guns in 2022, but the overall rate of ghost gun seizures is still significantly higher than a few years ago.

“Our number one priority is keeping our residents safe, and gun crimes are a direct threat to that safety,” said U.S. Attorney Randy Grossman. “Every illegal gun that is removed from criminal hands makes us safer, and for that reason, this operation was a tremendous success.” Grossman thanked the prosecution team for their dedication to these cases; and especially agents and officers from ATF and San Diego Police Department who put their lives on the line during this very successful operation.

“The Privately Made Firearms Crime Reduction Project was conducted so ATF could leverage its federal resources to attack gun crime in San Diego,” said ATF Los Angeles Field Division Special Agent in Charge Christopher Bombardiere. “ATF collaborated with its our partners and successfully focused their efforts on violent individuals who were making and selling extremely powerful firearms without a license. In 90 days, ATF seized 165 firearms with almost half being privately made firearms and about a third being unregistered National Firearms Act (NFA) weapons. Those consisted of machine guns, machine gun conversion devices, short-barreled rifles, and silencers. This initiative and other ongoing investigations will continue to make our community safer.”  

“The proliferation of drugs and firearms in our communities is an issue the San Diego Police Department is laser-focused on,” said San Diego Police Department Chief David Nisleit. “As one of the first in the nation to have a dedicated team for ghost gun investigations in the City of San Diego, SDPD is proud to have been a part of such a successful operation that gets drugs, firearms and the criminals that sell and manufacture them off our streets. The efforts by all involved demonstrate the seriousness and effectiveness of our collaborative work to combat this issue.”

In 2021, the San Diego Police Department established a dedicated team to address the proliferation of personally manufactured firearms, or “ghost guns,” in San Diego. One of the first of its kind in the nation, the Ghost Gun Apprehension Team has been tasked with investigating unlawful ghost gun manufacturing and sales cases. The team serves as a resource to patrol, area station detectives and specialized units when ghost guns are discovered during an arrest or investigation.

“The District Attorney’s Office is committed to continuing to work with our state and federal partners on targeted operations like this one that make our neighborhoods safer,” said San Diego County District Attorney Summer Stephan. “In addition to the illegal guns seized, thousands of fentanyl-laced pills and dozens of pounds of meth were recovered, keeping these illegal and dangerous drugs off the streets and preventing potentially fatal overdoses.”

In this operation, examples of federal cases include these allegations which are contained in charging documents:

-           Christian Ferrari, a 22-year-old active-duty U.S. Marine stationed at Camp Pendleton, was charged with illegally selling ghost guns to undercover ATF agents in several transactions. These guns included 12 AR-type rifles. The agents also placed an order for an additional 10 rifles and explained they were for an associate who would be taking the firearms into Mexico.  Ferrari responded, “alright, perfect,” and quoted the agents $10,000 for those 10 rifles. (23-mj-01618)

-           Giovanni Diaz was convicted of robbery in 2022. In March 2023, Diaz began selling fentanyl pills and guns to an ATF undercover agent.  Over the course of two weeks, Diaz sold 1,400 fentanyl pills and three ghost guns to the agent. (23-cr-000872)

-           Jonathan Manuel Flores was charged with assaulting a federal officer with a Glock 9 mm pistol and brandishing a firearm in furtherance of a crime of violence. According to a federal complaint, on February 17, 2023, ATF agents conducted an undercover operation in San Diego to purchase a machine gun, specifically a Glock pistol with a full auto conversion device, commonly known as a “Glock Switch,” for $2,400. During the undercover operation the defendant insisted that the gun deal take place in their car. The undercover agent got into the back seat of the parked car as requested. As the undercover agent finished counting the cash, the defendant allegedly pulled back the slide on his pistol to make it ready to shoot and pushed the muzzle into the undercover agent’s ribcage. He then said, “Get the f---- out of the car dog before I smoke you” while grabbing the cash from the agent’s hand. The agent quickly exited the vehicle and the sedan took off. (23-cr-0512)

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

A federal grand jury in San Diego returned an indictment on May 19 charging a California man and woman with conspiracy to commit wire fraud, wire fraud, and money laundering.

According to the indictment, Leronce Suel and Ravae Smith owned Rockstar Dough LLC and Chicken Feed LLC, both of which operated a series of restaurants in the San Diego area. From March 2020 to June 2022 Suel and Smith allegedly conspired to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return (From 1120S) filed with the IRS in order to qualify for the COVID-related Paycheck Protection Program and Restaurant Revitalization Funding loans. Suel and Smith also allegedly made materially false certifications on loan applications regarding the use of the money. The indictment charges that Suel and Smith made substantial cash withdrawals from their business bank accounts to launder the fraudulently obtained funds. As part of the conspiracy, Suel and Smith allegedly concealed more than $2.4 million in cash at their residence.

Suel and Smith made their initial court appearance yesterday before U.S. Magistrate Judge William V. Gallo of the U.S. District Court for the Southern District of California. If convicted, they face a maximum penalty of 30 years in prison for wire fraud and conspiracy to commit wire fraud and 10 years in prison for money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Randy S. Grossman for the Southern District of California made the announcement.

“During an unprecedented public health emergency, the United States provided these loan programs to deliver economic relief to Americans,” said U.S. Attorney Randy Grossman for the Southern District of California. “This office will investigate and prosecute those who exploited the global pandemic to unjustly enrich themselves. We encourage anyone with information regarding individuals who have engaged in COVID-relief fraud to come forward.” Grossman thanked the prosecution team and the investigative agency for their excellent work on this case.

“The CARES act was passed to aid those in need and provide much needed relief during the Covid-19 pandemic. Unfortunately, there are individuals and organizations who took advantage and targeted these programs to steal funds,” said Special Agent in Charge Tyler Hatcher of the Los Angeles Field Office. “Submitting false returns in support of a fraudulent loan application is a crime.  IRS-CI is committed to aggressively investigating these crimes and bringing those to justice who stole funds and targeted relief programs during the pandemic.”

The IRS-Criminal Investigation are investigating the case.

Trial Attorney Julia Rugg of the Justice Department’s Tax Division and Assistant U.S. Attorney Christopher Beeler of the Southern District of California are prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

NEWS RELEASE SUMMARY — May 23, 2023

SAN DIEGO—A federal grand jury has returned an indictment charging San Diego restaurant owners with fraud and money laundering in connection with an alleged scheme to falsify applications for pandemic relief funds.

According to the indictment, Leronce Suel and Ravae Smith owned Rockstar Dough LLC and Chicken Feed LLC, both of which operated a series of restaurants in the San Diego area.  From March 2020 to June 2022, Suel and Smith allegedly conspired to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return (Form 1120S) filed with the IRS in order to qualify for the COVID-related Paycheck Protection Program and Restaurant Revitalization Funding loans.

Suel and Smith also allegedly made materially false certifications on loan applications regarding the use of the money. The indictment charges that Suel and Smith made substantial cash withdrawals from their business bank accounts to launder the fraudulently obtained funds. As part of the conspiracy, Suel and Smith allegedly concealed more than $2.4 million in cash at their residence.

Suel and Smith made their initial court appearance today before U.S. Magistrate Judge William V. Gallo.

“During an unprecedented public health emergency, the United States provided these loan programs to deliver economic relief to Americans,” said U.S. Attorney Randy Grossman. “This office will investigate and prosecute those who exploited the global pandemic to unjustly enrich themselves.” Grossman thanked the prosecution team and the IRS for their excellent work on this case.

“The CARES Act was passed to aid those in need and provide much needed relief during the Covid-19 pandemic,” said Special Agent in Charge Tyler Hatcher of the Los Angeles Field Office. “Unfortunately, there are individuals and organizations who took advantage and targeted these programs to steal funds. Submitting false returns in support of a fraudulent loan application is a crime.  IRS-CI is committed to aggressively investigating these crimes and bringing those to justice who stole funds and targeted relief programs during the pandemic.”

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020 and is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The case is being prosecuted by Assistant U. S. Attorney Christopher Beeler and Trial Attorney Julia M. Rugg from the Department of Justice’s Tax Division.

DEFENDANT                                               Case Number 23-CR-0965-RBM

Leronce Suel                                                   San Diego                   Age: 46

RaVae Smith                                                   San Diego                   Age: 45

SUMMARY OF CHARGES

Conspiracy to Commit Wire Fraud—Title 18, U.S.C., Section 1349

Maximum penalty: Thirty years in prison, $1 million fine; forfeiture and restitution

Wire Fraud—Title 18, U.S.C., Section 1343

Maximum penalty: Thirty years in prison, $1 million fine; forfeiture and restitution

Money Laundering—Title 18, U.S.C. Section 1957

Maximum penalty: Ten years in prison, $1 million fine; forfeiture and restitution

AGENCY

IRS Criminal Investigation

*The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.

NEWS RELEASE SUMMARY – May 23, 2023

SAN DIEGO – Law enforcement leaders today announced that an unprecedented two-month fentanyl-enforcement surge along the southwest border has resulted in the seizure of about 4,721 pounds of fentanyl, 1,700 pounds of fentanyl precursors and more than 200 arrests of alleged smugglers, traffickers and dealers within the Southern and Central Districts of California.

The surge, labeled Operation Blue Lotus, was launched by the Department of Homeland Security along the Southwest border, including the Southern and Central districts of California and the District of Arizona, from March 13 to May 10, 2023.

According to DHS, in San Diego County alone, the two-month surge has resulted in a 300 percent increase in fentanyl seizures versus the same period last year – from 732 pounds in 2022 to 2,931 pounds in 2023. During the DHS surge, the U.S. Attorney’s Office saw a 30 percent increase in defendants prosecuted for fentanyl-related crimes in the Southern District of California compared to the same time period in 2022. And these prosecutions follow a record-setting fiscal year 2022, when we prosecuted 317 defendants for fentanyl offenses (more than an 1,800 percent increase compared to FY2017).

The operation involved the deployment of an extra 85 Homeland Security Investigations special agents and 35 Customs and Border Protection officers; many more targeted inspections at the border; the use of advanced technology at locations along the border; and intensified efforts to gather intelligence to build criminal cases against transnational criminal organizations and U.S.-based distribution networks.

“We are an epicenter for fentanyl trafficking into the United States, and we know the immense responsibility that we bear to address this crisis,” said U.S Attorney Randy Grossman. “We are answering that call to action with hard work, a purpose and a plan. Every milligram of fentanyl that we seize, and every smuggler, trafficker and dealer we bring to justice, means less fatal doses on the streets of San Diego and beyond.”

“As demonstrated by the results under Operation Blue Lotus, Homeland Security Investigations (HSI), our DHS partners, law enforcement agencies and departments throughout Southern California are bringing the full weight of combined federal and local law enforcement resources to combat this fentanyl crisis,” said Chad Plantz, special agent in charge, HSI San Diego. “We are not only seeking to seize the Mexican cartel’s deadly drugs, but to remove their members and their associates from our communities and deny their opportunities to continue their deadly criminal enterprises.”

“Operation Blue Lotus represents the kind of exceptional law enforcement and prosecution innovation and collaboration that can effectively impact deadly fentanyl distribution and save lives,” said San Diego County District Attorney Summer Stephan. “I want to recognize the leadership of the U.S. Attorney and other key partners in bringing this operation forward. This operation yielded an extraordinary outcome that is having a direct impact on public safety. The prosecutions that resulted from this operation are an example of our ongoing commitment to holding dealers and traffickers accountable.”

“This operation was truly an outstanding demonstration of our partnership approach here in San Diego in working together to combat the importation of fentanyl,” said Sidney K. Aki, Director of Field Operations for San Diego Field Office of Customs and Border Protection. “CBP alongside our partner agencies are committed and will continue to protect our communities from this devasting.”

“In just a few months, Operation Blue Lotus was successful in removing millions of potentially deadly doses of fentanyl off the streets,” said DEA Special Agent in Charge Shelly Howe. “But our work is not done. Fentanyl and meth continue to find their way onto the streets of San Diego, fueling addiction and driving deaths higher. Combined with our federal, state, and local partners we will continue to hold accountable those who traffic drugs and threaten the safety of our community.”

“I'm extremely proud of the work our investigators have done to interdict and interrupt the cross-border criminal organizations who continue to traffic deadly drugs into our communities and across the nation. The long hours and collaboration across federal, state, local, and tribal law enforcement organizations is a testament to the dedication and commitment all of us feel to keep our communities safe,” said San Diego County Sheriff Kelly Martinez.

Some examples of the Blue Lotus Operation results include:

• seized fentanyl that also tested positive for xylazine. The White House has designated the combination of xylazine and fentanyl as an emerging threat to the United States based on xylazine’s growing role in overdose deaths.

• Officials seized a quantity of fentanyl precursor drugs that could produce more than 200 million fentanyl pills.

• A vehicle inspection at the border resulted in the discovery of 116 packages containing about 163 pounds of fentanyl concealed in the rear bumper, quarter panels, doors, seats, center console, gas tank, and firewall of the vehicle. The driver was arrested and charged.

In addition to the surge associated with Operation Blue Lotus, law enforcement officials here have attacked the fentanyl crises through aggressive prosecutions at every level of the supply chain – from the Sinaloa Cartel leadership, to cross-border trafficking organizations, to money launderers, to street level dealers who are selling drugs that result in overdose deaths. These impactful cases are the result of a close collaboration among the U.S. Attorney’s Office and several multi-jurisdictional task forces focused on combatting the fentanyl crisis, including the HSI-led Fentanyl Abatement and Suppression Team (FAST), a joint federal, state and local law enforcement task force that targets fentanyl distribution networks in the Southern District of California. FAST’s mission compliments the work of the DEA’s Overdose Response Team (formerly Team 10) which investigates fentanyl overdoses in the City of San Diego.

NEWS RELEASE SUMMARY – May 12, 2023

SAN DIEGO – Ashton Jordan was sentenced in federal court today to 108 months in prison for transporting a woman from Nevada to Arizona to California in order to cause her to engage in prostitution.

Jordan was arrested in Arizona in November 2021 on sex trafficking charges following his indictment by a federal grand jury. He first came to the attention of law enforcement in July 2021 when the victim escaped from Jordan at a hotel in downtown San Diego. She reported at the time that Jordan had used violence against her to cause her to stay with him and prostitute herself for his financial benefit. Jordan was on probation at the time of his offense.

Jordan pleaded guilty in November 2022. In his plea agreement, Jordan admitted that he brought the victim to San Diego with the intent that she would be engaging in prostitution. During the time that Jordan was with the victim, he further admitted that he was physically violent with her on multiple occasions in order to cause her to engage in prostitution.

“I applaud the bravery of this victim,” said U.S. Attorney Randy Grossman. “The defendant’s reprehensible actions have forever impacted her life, and for that he will pay a high price. We will never relent in our pursuit of justice for victims.” Grossman thanked the prosecution team and the San Diego Human Trafficking Task Force for their excellent work on this case.

“Human trafficking and sexual exploitation destroy lives,” said California Attorney General Rob Bonta. “Today’s sentencing is another example of our commitment to hold perpetrators accountable and help survivors get a fresh start. I’m thankful to all of our partners on the San Diego Human Trafficking Task Force for their collaboration and I’m proud of our office’s work to help uplift vulnerable Californians. When we work together, we get results. At the California Department of Justice, we’re always ready to answer the call when it comes to standing up for public safety.”

“Jordan preyed on, manipulated, and exploited his victim for his own financial gain—he showed zero regard for human life,” said Acting Special Agent in Charge Houtan Moshrefi. “Sex trafficking happens every day, and it often occurs in plain sight. When you see something that doesn’t feel right, report it to law enforcement. FBI San Diego will continue to collaborate with our partners at every level to hold accountable all who believe a living being can be reduced to a dollar amount.”

Jordan has been detained in custody since his arrest in November 2021.

At the sentencing hearing today, U.S. District Court Judge Dana M. Sabraw not only imposed the 108-month prison sentence, but also ordered Jordan to serve 10 years of supervised release following his release from custody.

DEFENDANTS                                             Case Number 22cr2649-DMS                                      

Ashton Tylon Amir Jordan                             Age: 28                                   Phoenix, AZ

SUMMARY OF CHARGES

Transportation for Purposes of Prostitution – Title 18, U.S.C., Section 2421

Maximum penalty: Ten years in prison and $250,000 fine

AGENCY

San Diego Human Trafficking Task Force, which consists of:

Federal Bureau of Investigation

California Department of Justice

California Department of Corrections & Rehabilitation – Parole

California Highway Patrol

ICE/Homeland Security Investigations

National City Police Department

San Diego City Attorney’s Office

San Diego County District Attorney’s Office

San Diego County Probation Department

San Diego County Sheriff’s Department

San Diego Police Department

United States Attorney’s Office, Southern District of California

NEWS RELEASE SUMMARY—May 11, 2023

SAN DIEGO—U.S. Border Patrol Agent Hector Hernandez made his initial appearance in federal court today on charges that he agreed to accept $25,000 in bribes to distribute methamphetamine and to open a restricted border gate to allow unauthorized migrants to illegally enter the United States.

The complaint alleges that on May 8, 2023, Hernandez opened a restricted border gate while on duty as part of an agreement to allow an unauthorized migrant to enter the United States from Mexico in exchange for a $5,000 cash payment to Hernandez. Hernandez was unaware that he’d made that agreement with an undercover federal agent.

Then, on May 9, 2023, in exchange for another cash payment, Hernandez arranged to pick up a duffle bag loaded with methamphetamine from a storm drain near the border fence while on duty. According to the complaint, Hernandez put the bag into his Border Patrol vehicle and drove it to his house in Chula Vista, where he stored it for the remainder of his shift.

In the morning on May 10, 2023, Hernandez retrieved the bag and met with the undercover agent intending to deliver the drugs in return for an expected $20,000 cash payment, the complaint said. At that meeting, after delivering the drugs, Hernandez was arrested.

A detention hearing is scheduled for May 16 at 1:30 p.m. before U.S. Magistrate Judge Bernard G. Skomal.

DEFENDANT                                               Case Number 23mj1663-BGS                       

Hector Hernandez                                           Age: 55                       Chula Vista, CA

SUMMARY OF CHARGES

Attempted Distribution of Methamphetamine – 21 U.S.C., Sections 841(a)(1) and 846

Maximum penalty: Life in prison with a 10-year mandatory minimum

Receiving Bribe by Public Official – 18 U.S.C., Section 201(b)(2)

Maximum penalty: Fifteen years in prison

AGENCIES

Department of Homeland Security, Office of the Inspector General

Drug Enforcement Administration

Federal Bureau of Investigation, Border Corruption Task Force

*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.

NEWS RELEASE SUMMARY – May 4, 2023

SAN DIEGO – Nasser Salman, a former San Diego resident living in Morocco, was arraigned in federal court today on charges that he fraudulently obtained more than $400,000 in COVID-relief loan funds on behalf of three companies.

According to the indictment, Salman submitted fraudulent applications to the federal Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) in connection with Lemon Grove Deli and Grill, Inc., Al Laith Trading and Construction Consulting Inc. and Alliance Security Consulting Services, Inc.

The indictment said that between April and August 2020, Salman successfully obtained five separate PPP and EIDL loans totaling $401,000 using applications that included false representations about the number of employees, the average monthly payroll, and the gross receipts earned by these purported businesses. Salman also submitted fictitious documents in support of the applications

According to the indictment, when Salman applied for the loans, he acknowledged the funds must be used to retain workers and maintain payroll, or to make mortgage interest payments, lease payments and utility payments. Instead, as alleged in the indictment, Salman engaged in a series of financial transactions, including international wire transfers to a Morocco-based bank account, that were designed to conceal and disguise the fact that the sources for the funds were the fraudulently obtained PPP and EIDL loans. 

“These loan programs were designed to render economic relief to Americans during an unprecedented public health emergency,” said U.S. Attorney Randy Grossman. “This office is dedicated to investigating and prosecuting those who exploited the global pandemic to enrich themselves. We encourage anyone with information regarding individuals who have engaged in COVID-relief fraud to come forward.” Grossman thanked the prosecution team and the law enforcement agencies for their excellent work on this case.

“Covid relief fraud not only waste taxpayers’ dollars; it undermines the public trust of government programs,” said Chad Plantz, special agent in charge, HSI San Diego.  “HSI will continue to work with our law enforcement partners to investigate and bring to justice fraudsters who diverted financial relief away from Americans at a time when they need it the most.”

A detention hearing is scheduled for May 9, 2023, at 9:30 a.m. before U.S. Magistrate Judge Barbara L. Major.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020 and is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.

Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

DEFENDANTS                                             Case Number 23CR0821-LL

Nasser Salman                                              Age: 60               United States                                                 

SUMMARY OF CHARGES

Counts 1-5- Wire Fraud

Title 18, U.S.C., Section 1343

Maximum Penalty: Thirty years in prison and $1,000,000 fine

Counts 6-11 – Laundering of Monetary Instruments
Title 18, U.S.C., Sections 1956(a)(1)(a)(B)(i)

Maximum Penalty: Twenty years in prison; a fine of $500,000 or twice the amount of the monetary instruments involved, whichever is greater

AGENCIES

Homeland Security Investigations (HSI)

Small Business Administration (SBA)

The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

NEWS RELEASE SUMMARY – May 2, 2023

SAN DIEGO – Four San Diego residents were charged in federal court today with participating in a childcare-benefits fraud scheme that bilked a California welfare and benefits program of millions of dollars.

Mohamed Muriidi Mohamed, Amina Abdirazak Omar, Osob Abdirazak Omar and Omar Omar were arraigned this afternoon before U.S. Magistrate Judge Barbara L. Major.

According to the indictment, the Department of Health and Human Services (HHS) funds a program known as “Alternative Payment Program/Stage 2 Childcare.”  This childcare benefits program allows eligible parents to select a licensed childcare provider to provide childcare services that best fit a family’s needs.  In San Diego, this program is administered by two contractors: Child Development Associates (CDA) and the Young Men’s Christian Association (YMCA).  CDA and YMCA disburse the funding from HHS and the state of California directly to the designated childcare providers. In administering the program, CDA and YMCA require verification forms to be completed by the parent, and the employer and/or school.

The indictment alleges that the defendants fraudulently caused CDA and YMCA to pay out millions in childcare benefit program funds by falsely verifying that parents were working at or attending school at the UMI Learning Center, a vocational and language school located on University Avenue, although the parents were not actually participating in classes or employment during the days, and for the hours, claimed.  In turn, childcare providers submitted false daily childcare attendance forms claiming that childcare was provided for days and hours when the parents were supposedly at UMI Learning Center for work or school, although no childcare was actually provided.  In exchange for these false verification forms, parents were expected to pay $200 to UMI Learning Center, and the childcare providers were expected to split the childcare benefit program funds they received, 50/50, with the parents.  The indictment alleges that the defendants’ scheme caused CDA and YMCA to pay out over $3.7 million dollars in childcare benefit program funds.

“Childcare benefit programs are designed to help parents who need the assistance of quality childcare service,” said U.S. Attorney Randy Grossman. “Fraud takes money away from the very communities those programs are intended to serve.” Grossman thanked the prosecution team and Homeland Security Investigations for their hard work on this case.

“It is unacceptable for individuals to exploit and defraud programs designed to provide basic childcare benefits for hard working families,” said Chad Plantz, special agent in charge, HSI San Diego. “This investigation serves as an example of how dedicated we are to working in coordination with our law enforcement partners to support and affect a positive impact on the local community.”

DEFENDANTS                                             Case Number 23CR0552-RBM                                   

Mohamed Muriidi Mohamed, Spring Valley                           Age: 46

Amina Abdirazak Omar, Spring Valley                                   Age: 40

Osob Abdirazak Omar, San Diego                                         Age: 32

Omar Omar, San Diego                                                          Age: 22

SUMMARY OF CHARGES

Wire Fraud and Theft Conspiracy - Title 18, U.S.C., Section 371

Maximum penalty: Five years in prison and fine of the greater of $250,000, or twice the pecuniary gain or loss

Wire Fraud– Title 18, U.S.C., Section 1343

Maximum penalty: Twenty years in prison and fine of the greater of $250,000, or twice the pecuniary gain or loss

Theft of Government Funds – Title 18, U.S.C., Section 641

Maximum penalty: Ten years in prison and fine of the greater of $250,000, or twice the pecuniary gain or loss

AGENCIES

U.S. Department of Homeland Security, Homeland Security Investigations

U.S. Department of Health and Human Services, Office of the Inspector General

U.S. Department of Housing and Urban Development, Office of the 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.

NEWS RELEASE SUMMARY – April 25, 2023

SAN DIEGO – Akil Saeed Daniels was sentenced in federal court to 110 months in prison for robbing credit unions in Poway and Chula Vista in 2022 - months after he was released from a long stint in prison for robbing the same Chula Vista credit union more than a decade earlier.

That twice-robbed credit union – California Coast on H Street in Chula Vista – was one of five financial institutions Daniels robbed in 2011. For that he was sentenced to more than 13 years in prison. Following his release in June 2022, he then robbed the same Chula Vista location of California Coast Credit Union only three months later, on September 27, 2022. He robbed the Mission Federal Credit Union the next day.

During the most recent robbery of California Coast, Daniels used a demand note. Coincidentally, the teller he robbed at that location in 2011 still works for the credit union. That teller was standing beside another teller when Daniels robbed that location again 11 years later.

When Daniels robbed the Mission Federal Credit Union in Poway, he used a demand note that read, “Hand me all the money, don’t make me get violent” or “Hand me all the money, I don’t want to get violent.”

Daniels was arrested on October 3, 2022, and was indicted for those robberies in November 2022. He was convicted by a federal jury following a two-day trial in January 2023.

“Employees who have been through a robbery are impacted for the rest of their lives,” said U.S. Attorney Randy Grossman. “This defendant made the decision to terrorize the same people not once, but twice. And now, not once, but twice, he will pay for his crime with a lengthy prison term.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.

“This is not the first time that Daniels has had to face the consequences for this type of crime,” said Acting Special Agent in Charge Houtan Moshrefi. “May this 110-month sentence be a reminder of the severity of his actions. Violent crimes such as these in our community are intolerable. The FBI and our law enforcement partners are committed to holding those responsible who choose to rob banks as a means of income.”

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 San Diego Violent Crimes Task Force, the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.

This case is also 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.

DEFENDANT                                               Case Number 22cr2505-LL                              

Akil Saeed Daniels                                         Age: 41                                   San Diego, CA

SUMMARY OF CHARGES

Bank Robbery – Title 18, U.S.C., Section 2113(a)

Maximum penalty:  Twenty years in prison

Bank Robbery – Title 18, U.S.C., Section 2113(a)

Maximum penalty:  Twenty years in prison

AGENCY

Federal Bureau of Investigation – Violent Crimes Task Force

NEWS RELEASE SUMMARY – April 25, 2023

SAN DIEGO – Jonathan Miguel Lopez was sentenced in federal court to 120 months in prison for selling the fentanyl pills that resulted in the fatal overdose of 23-year-old Sherie Gil on September 30, 2021.

Lopez pleaded guilty in October 2022. According to the government’s sentencing memo, on the morning of September 30, 2021, law enforcement officials and paramedics responded to a 911 call from a commercial office building in San Diego. Law enforcement found Gil deceased in a bathroom along with drug paraphernalia, Gil’s cell phone, and “blues,” or counterfeit oxycodone pills containing fentanyl. The Medical Examiner’s Office later determined that Gil had died as the result of the “toxic effects of fentanyl, cocaine, and alprazolam.” 

During a search of Gil’s cell phone, agents discovered that Gil had exchanged text messages with another phone number asking if she could “pick up” blues in the days leading up to Gil’s death. During the investigation that followed, law enforcement discovered that the other phone number was registered to Lopez’s co-defendant, Jamie Ashley Koryn. The text messages also indicated that, on September 29, 2021, Gil again messaged Koryn requesting blues; Koryn sent Gil. her address and Gil then responded that she was seven minutes away.

On October 8, 2021, during the execution of a search warrant at the residence Lopez shared with his co-defendant, Koryn, law enforcement located and arrested Koryn and Lopez and seized their cellular phones. Agents found text messages on Lopez’s and Koryn’s phones showing that they entered into an agreement to distribute fentanyl. Lopez’s plea agreement described some of the text messages in which Lopez was negotiated the price of the fentanyl he would charge their customers. During that search agents also found a loaded pistol under Lopez’s mattress. In his plea agreement Lopez admitted that he used that pistol to protect the drugs that he and Koryn stored at their residence.

Per the plea agreement, Lopez and the government stipulated that the Sentencing Guidelines for distribution of a controlled substance resulting in death and/or serious bodily injury would apply.

“This young woman’s death serves as another terrible reminder of the ongoing devastation inflicted by counterfeit fentanyl pills,” said U.S. Attorney Randy Grossman. “This office remains dedicated to pursuing individuals who seek to profit from the deadly fentanyl market. Those who cause such tragic loss of life will be held accountable.” Grossman thanked the prosecution team and investigating agencies who diligently pursued this case.

“San Diego has lost another life to the devastating effects of fentanyl,” said DEA Special Agent in Charge Shelly Howe. “The DEA and its partners will continue to pursue justice for those who fall victim to this poison.”

“Faced with a decade in federal prison, Lopez will no longer be able to contribute to the opioid epidemic terrorizing not only San Diego, but our entire country,” said Acting Special Agent in Charge Houtan Moshrefi of the FBI’s San Diego Field Office. “It is horrible that Lopez’s actions destroyed one life, but I am confident that his removal from society will save many more. Today’s sentence should put drug dealers on notice that the FBI and our law enforcement partners will continue to identify, disrupt, and remove anyone who peddles this poison from our communities.”

“Homeland Security Investigations (HSI) is dedicated to working with our law enforcement partners to prioritize our efforts and resources toward combatting this fentanyl crisis and will continue to relentlessly pursue those responsible for the smuggling and distribution of this deadly drug within our communities,” said Special Agent in Charge, Chad Plantz, HSI San Diego. “Today’s sentencing demonstrates that those who deliberately engage in these dangerous activities will be held accountable.”

Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation into Gil’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. In 2018, the Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County.

For those who suffer from addiction, please know there is help. Call the Crisis line at 888-724-7240; it’s always open.

DEFENDANT                                               Case Number 22-CR-0214-LL                                            

Jonathan Miguel Lopez                                              Age: 35            San Diego

SUMMARY OF CHARGES

Distribution of Fentanyl – Title 21, U.S.C., Section 841(a)(1)

Maximum penalty: Life in Prison

AGENCY

Drug Enforcement Administration

Federal Bureau of Investigation

San Diego Police Department

Homeland Security Investigations

California Department of Health Care Services

San Diego County District Attorney’s Office

NEWS RELEASE SUMMARY – April 24, 2023

SAN DIEGO – Former bookkeeper Susan Ann Sears was sentenced in federal court today to 29 months in prison for embezzling more than $765,000 from Shapery Enterprises and nearly $165,000 from Hope Campbell Realty Inc.

Sears was also ordered to pay $839,419.22 in restitution—$674,673.93 to American Express and $164,745.29 to Hope Campbell Realty.

Sears served as the bookkeeper for Shapery Enterprises from July 2018 to November 2019. As the bookkeeper, Sears had access to the business’s bank accounts, American Express credit card, and accounting programs. In her plea agreement, Sears admitted that she opened a personal American Express credit card in the name of a family member, obtained American Express cards for herself and family members, and used Shapery Enterprises’ bank account to pay the personal American Express account. Sears made the payments appear to be legitimate business expenses by entering “S. Sharpery,” which is one letter off from the CEO’s last name of Shapery.

Sears also issued herself unauthorized checks and falsified entries in the business’ accounting programs. In total, Sears stole more than $765,000 from Shapery Enterprises. Since American Express reimbursed Shapery Enterprises $674,673.93, Sears admitted that the loss to American Express was $674,673.93.

After Sears was fired from Shapery Enterprises in November 2019 and the government notified her that she was under investigation for wire fraud, Sears was employed by Hope Campbell Realty as its bookkeeper from February 2021 to November 2021. Sears again abused her position of trust and issued herself and her family members unauthorized checks. Sears also falsified entries in Hope Campbell Realty’s accounting programs to make it appear that the checks were for legitimate business purposes. Between March 2021 and November 2021, Sears stole nearly $165,000 from Hope Campbell Realty.

“Sears took advantage of her employers’ trust and treated their bank accounts as her personal piggy bank, stealing hundreds of thousands of dollars,” said U.S. Attorney Randy S. Grossman. “This defendant inflicted substantial damage to two San Diego businesses and has been held to account for her conduct.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.

“Susan Ann Sears went to great lengths to defraud not one, but two of her employers. Even after learning that she was under investigation, she brazenly continued to abuse her position of trust to feed her own greed,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “Embezzlement will always come to light—the short-term benefits are never worth the repercussions. The FBI will continue to identify and investigate those who choose to line their own pockets at the expense of others.”

DEFENDANTS                                             Case Number 21cr3189-GPC                                       

Susan Ann Sears                                             Age: 64                                   San Diego, CA

SUMMARY OF CHARGES

Wire Fraud – Title 18, U.S.C., Section 1343

Maximum penalty: Twenty years in prison and $250,000 fine, or twice the gain/loss, whichever is greater

AGENCY

Federal Bureau of Investigation

NEWS RELEASE SUMMARY – April 21, 2023

SAN DIEGO – Roberto Salazar II, who until his arrest was an active-duty U.S. Marine stationed at Marine Corps Air Station Miramar, was sentenced in federal court to 144 months in prison for his role in a years-long drug importation and distribution conspiracy that involved dozens of smuggling events.

Salazar pleaded guilty in October 2022 to conspiring to distribute controlled substances, including heroin, methamphetamine, cocaine and fentanyl, and to importing fentanyl into the United States from Mexico. According to his plea agreement, Salazar recruited, managed, and paid multiple drug couriers—both before he joined the Marine Corps and while he was on active duty. He also personally distributed controlled substances within the United States.

According to court documents, Salazar and his co-conspirators favored the use of specific model cars with a unique engine compartment they used to conceal and import drugs. Salazar helped to obtain these specific cars and deliver them to a business in Mexico, where couriers would be directed to retrieve the cars with drugs loaded inside them and drive them across the border.

By the time Salazar and his codefendants were arrested, according to prosecutors, Salazar had become so involved in drug trafficking that he was commissioning a Mexican songwriter to write a drug ballad known as a “narcocorrido” about him. Information gathered from Salazar’s seized cell phones showed he was in communication with a Mexican songwriter about writing music and lyrics celebrating his role in drug trafficking, including references to his military service.

In one line that Salazar suggested to the songwriter, he boasted: “I wanted to study and became a soldier, but I liked the fast life better.”

Among the individuals Salazar personally recruited were two former service members who had recently been discharged from the Marine Corps at the time Salazar recruited them. Salazar directed these individuals’ activities and paid them $2,000 each time they successfully imported drugs. Several of the drug couriers who worked for Salazar or his co-conspirators, including one of the former Marines recruited by Salazar, were caught at the border by Customs and Border Protection officers and charged with importing controlled substances. In another failed attempt to deliver drugs in Las Vegas, one of Salazar’s co-conspirators abandoned a kilogram of heroin on a grocery store shelf and fled from law enforcement.

“This case involved a Marine who was supposed to protect and defend our country, but instead brought great harm to Americans by trafficking fentanyl and other dangerous drugs,” said U.S. Attorney Randy Grossman. “He also betrayed his solemn oath by recruiting other Marines to do the same. Through this case, the defendant has been held to account for his crimes and we have dismantled yet another link in the supply chain for the deadly narcotics that are indiscriminately killing members of our community.” Grossman thanked the prosecution team, Homeland Security Investigations, Customs and Border Protection and the Naval Criminal Investigative Service for their outstanding work on this case.

“While disheartened by an individual who hid in the ranks of our prestigious U.S. military, this should serve as a warning to any would-be narcotics smugglers, that you cannot hide your nefarious crimes and you will be held accountable,” said Chad Plantz, Special Agent in Charge of HSI San Diego. “Today’s sentencing is a result of ongoing HSI investigation, in collaboration with our law enforcement partners, to disrupt and dismantle transnational criminal organizations and their importation of deadly narcotics into the U.S.”

“Mr. Salazar betrayed his oath to the Marine Corps and posed a significant threat to our national security by participating in an illegal operation to smuggle fentanyl into the United States,” said Special Agent in Charge Todd Battaglia of the NCIS Marine Corps West Field Office. “NCIS and our partners remain committed to fully investigating all allegations of criminality within the ranks that threaten military readiness and jeopardize the safety of our community members.” 

"Through his actions Mr. Salazar violated his duty as a Marine, dishonored the public's trust and promoted conditions that endangered the safety of the people,” said Sidney K. Aki, Director of Field Operations for San Diego Field Office. “National security efforts, which include narcotics interdictions, must remain our primary focus. Today’s sentencing is a clear indication of the strong partnership that continues in San Diego between federal agencies.”

DEFENDANT                                                           Case Number 22-cr-216-JLS                                   

Roberto Salazar II                               Age: 26                       San Diego, CA                   144 months

Jose Ernesto Lopez (2)                       Age: 24                       Bell Gardens, CA               70 months

Juan Carlos Zepeda-Santos (3)           Age: 40                       Lynwood, CA                               33 months

SUMMARY OF CHARGES                                                                                   

Conspiracy to Distribute Heroin, Methamphetamine, Cocaine, and Fentanyl – Title 21, United States Code, Sections 841 and 846

Mandatory Minimum: Ten years in prison

Maximum penalties: Life in prison and $10 million fine

Importation of Fentanyl – Title 21, United States Code, Sections 952 and 960

Mandatory Minimum: Ten years in prison

Maximum penalties: Life in prison and $10 million fine

AGENCY

Homeland Security Investigations

U.S. Customs and Border Protection

Naval Criminal Investigative Service

The Justice Department today announced charges unsealed in the Southern District of New York, Northern District of Illinois, and District of Columbia, against several leaders of the Sinaloa Cartel, a transnational drug trafficking organization based in Sinaloa, Mexico, and its facilitators across the globe. 

“Today, the Justice Department is announcing significant enforcement actions against the largest, most violent, and most prolific fentanyl trafficking operation in the world – run by the Sinaloa Cartel, and fueled by Chinese precursor chemical and pharmaceutical companies,” said Attorney General Merrick B. Garland. “Families and communities across our country are being devastated by the fentanyl epidemic. Today’s actions demonstrate the comprehensive approach the Justice Department is taking to disrupt fentanyl trafficking and save American lives.”

“The fentanyl crisis in America – fueled in large part by the Sinaloa cartel – threatens our public health, our public safety, and our national security,” said Deputy Attorney General Lisa O. Monaco. “Today’s indictments target every element of the Sinaloa Cartel's trafficking network and reflect the Justice Department's commitment to attacking every aspect of this threat: from the chemical companies in China that spawn fentanyl precursors, to the illicit labs that produce the poison, to the networks and money launderers and murderers that facilitate its distribution. Just as we have gone on offense against terrorists and cyber criminals around the globe, the Department is now waging a relentless campaign to disrupt the production and trafficking of fentanyl – before it can reach its victims.”

“Today’s indictments send a clear message to the Chapitos, the Sinaloa Cartel, and criminal drug networks around the world that the DEA will stop at nothing to protect the national security of the United States and the safety and health of the American people,” said DEA Administrator Anne Milgram. “The Chapitos pioneered the manufacture and trafficking of fentanyl – the deadliest drug threat our country has ever faced – flooded it into the United States for the past eight years and killed hundreds of thousands of Americans. Over the last year and a half, the DEA proactively infiltrated the Sinaloa Cartel and the Chapitos network, obtained unprecedented access to the organization’s highest levels, and followed them across the world. I am grateful to the men and women of the DEA for their exceptional work on this case, which is the beginning of our work as ‘One DEA’ to dismantle every part of the criminal cartels that are killing Americans at record rates.”

“Far too many Americans have become victims in the national fentanyl crisis. These cartels have shown us they will stop at nothing to manufacture, traffic, and push these dangerous drugs to every corner of our country,” said FBI Director Christopher Wray. “Today’s indictments show that the FBI and our law enforcement partners will never tire in our pursuit not only to shut down their criminal enterprises, but also to go after individuals in their network. I want to thank the FBI team continuing to work on these cases everyday as we join with our law enforcement partners to tackle this national epidemic.”

“This indictment is another example of how this administration is taking on the cartels and their transnational criminal networks, and sending a clear message that we are going to hold them accountable,” said Secretary of Homeland Security Alejandro N. Mayorkas. “I commend our workforce at Homeland Security Investigations and our federal partners who are relentless in their efforts to stop the scourge of fentanyl. Today’s announcement exemplifies a whole-of-government approach to protecting our homeland that is yielding results.”

The Sinaloa Cartel is one of the most powerful drug cartels in the world and is largely responsible for the manufacturing and importing of fentanyl for distribution in the United States. Fentanyl is a dangerous synthetic opioid that is more than 50 times more potent than heroin. Fentanyl is now the leading cause of death for Americans ages 18 to 49, and it has fueled the opioid epidemic that has been ravaging families and communities across the United States for approximately the past eight years. Between 2019 and 2021, fatal overdoses increased by approximately 94%, with an estimated 196 Americans dying each day from fentanyl.

The Sinaloa Cartel operated as an affiliation of drug traffickers and money launderers who obtain precursor chemicals – largely from China – for the manufacture of synthetic drugs, manufacture drugs in Mexico, move those drugs into the United States, and collect, launder, and transfer the proceeds of drug trafficking. Once led by Joaquin Guzman Loera, aka El Chapo, and Ismael Zambada Garcia, aka El Mayo, the Sinaloa Cartel’s members and associates – allegedly including the sons of Guzman Loera, collectively known as the Chapitos – smuggled significant quantities of drugs through Mexico and into the United States. The Chapitos are Ivan Guzman Salazar, 40, Alfredo Guzman Salazar, 37, Joaquin Guzman Lopez, 36, and Ovidio Guzman Lopez, 33.

Following Guzman Loera’s arrest in January 2016 and extradition to the United States in January 2017, the Chapitos 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.

The indictments being unsealed today demonstrate that the Sinaloa Cartel has been engaged in drug trafficking activities into the United States, and violence, spanning over a decade and a half.  The Chapitos are alleged to have repeatedly and consistently transported lethal amounts of cocaine, heroin, methamphetamine, and fentanyl. 

The Chapitos allegedly used cargo aircraft, private aircraft, submarines and other submersible and semi-submersible vessels, container ships, supply vessels, go-fast boats, fishing vessels, buses, rail cars, tractor trailers, automobiles, and private and commercial interstate and foreign carriers to transport their drugs and precursor chemicals. They allegedly maintained a network of couriers, tunnels, and stash houses throughout Mexico and the United States to further their drug-trafficking activities. The Chapitos allegedly used these networks to import the drugs into the United States. 

Southern District of New York

Fentanyl trafficking, weapons, and money laundering charges were unsealed today in the Southern District of New York against 28 defendants, including three of the Chapitos; top lieutenants and leadership of the Sinaloa Cartel; alleged manufacturers and distributors of the Sinaloa Cartel’s fentanyl; the managers of the violent armed security apparatus that protects the Sinaloa Cartel’s drug trafficking operations; the sophisticated money launderers who repatriate the Sinaloa Cartel’s drug proceeds back to Mexico; and multiple chemical precursor suppliers in China that fuel the Sinaloa Cartel’s fentanyl distribution operation. 

According to court documents, Ivan Guzman Salazar, Alfredo Guzman Salazar, Ovidio Guzman Lopez, and their co-conspirators allegedly controlled extensive, multi-faceted, and international operations covering the fentanyl trade. Through these efforts, the Chapitos and the Sinaloa Cartel allegedly reaped hundreds of millions of dollars in profits by flooding the United States with fentanyl. 

Seven defendants are in custody pending extradition proceedings.

Ovidio Guzman Lopez is charged in a separate indictment alleging the same offenses.

The DEA investigated the case with assistance from the Department of Treasury’s Office of Foreign Assets Control and the Department of State’s Rewards for Justice Program.

Assistant U.S. Attorneys Kyle A. Wirshba, Nicholas S. Bradley, Sarah L. Kushner, David J. Robles, and Alexander Li for the Southern District of New York are prosecuting the case. The Justice Department’s Office of International Affairs (OIA) provided substantial assistance.

Northern District of Illinois

Narcotics, money laundering, and firearms charges were unsealed today in the Northern District of Illinois against four of the Chapitos: Ivan Guzman Salazar, Alfredo Guzman Salazar, Joaquin Guzman Lopez, and Ovidio Guzman Lopez.

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), the Northern District of Illinois, the Southern District of California, and their law enforcement partners. The indictment alleges that between May 2008 and April 5, 2023, the Chapitos operated a drug trafficking Continuing Criminal Enterprise (CCE), along with additional drug, money laundering, and firearms charges.

Ovidio Guzman Lopez is charged in a separate indictment alleging the same offenses, dating from May 2008 until October 2021, when Mexican authorities arrested him on Jan. 5 in Culiacan, Sinaloa, Mexico. Ovidio Guzman Lopez remains detained in Mexico pending extradition proceedings. 

The FBI Washington Field Office and San Diego Field Office, Homeland Security Investigations Nogales Office, DEA’s Chicago Division and San Diego Division, and IRS Criminal Investigations Chicago Office are investigating the case.

Acting Deputy Chief Katharine Wagner and 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. OIA provided substantial assistance.

This case is supported by the Organized Crime Drug Enforcement Task Forces (OCDETF).

District of Columbia

Narcotics, firearms, and witness retaliation charges were unsealed today in the District of Columbia against Nestor Isidro Perez Salas, aka Nini, 31, allegedly one of the Chapitos’ lead sicarios, or assassins.

According to court documents, Perez Salas is allegedly a leader and commander of the “Ninis,” a violent group charged with providing security for the Chapitos. From at least 2012 until February 2021, Perez Salas allegedly conspired to distribute and manufacture cocaine and methamphetamine for unlawful importation into the United States, used a firearm in furtherance of the alleged drug-trafficking offense, and killed, attempted to kill, threatened, and caused bodily injury to another to intimidate a government witness and informant.   

The FBI Washington Field Office is investigating the case.

Trial Attorneys Kirk Handrich and Kate Naseef of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.

This case is supported by the OCDETF.

*          *          *          *          *

The U.S. Department of State, through its Narcotics Rewards Program, is offering rewards of up to $10 million for information leading to the arrest and/or conviction of Ivan Guzman Salazar, Alfredo Guzman Salazar, and Ovidio Guzman Lopez, and up to $5 million for information leading to the arrest and/or conviction of Joaquin Guzman Lopez.

Attorney General Merrick B. Garland, Deputy Attorney General Lisa O. Monaco, FBI Director Christopher A. Wray, DEA Administrator Anne Milgram, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Damian Williams for the Southern District of New York, U.S. Attorney Randy Grossman of the Southern District for California, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, and Acting Deputy Director PJ Lechleitner of the U.S. Immigration and Customs Enforcement (ICE) made the announcement.

Photos of the fugitives can be obtained at www.dea.gov/fugitives.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

NEWS RELEASE SUMMARY – April 14, 2023

SAN DIEGO – Four sons of Joaquín Guzmán Loera, the imprisoned former Sinaloa Cartel leader known as El Chapo, were indicted by a federal grand jury for large-scale drug trafficking, money laundering and violent crimes in connection with their assumption of cartel leadership following their father’s arrest and extradition to the United States.

The defendants, known collectively as the “Chapitos,” are Ivan Guzman Salazar, Alfredo Guzman Salazar, Joaquin Guzman Lopez, and Ovidio Guzman Lopez. Three brothers remain at large; Ovidio Guzman Lopez was arrested Jan. 5, 2023, by Mexican authorities in Culiacan, Sinaloa, Mexico. He remains detained in Mexico pending extradition proceedings.

The charges, unsealed today, were announced by Attorney General Merrick Garland, U.S.  Attorney Randy Grossman and others at a news conference this morning at the U.S. Department of Justice in Washington, D.C. The charges stem from a decades-long, multi-district investigation by the Southern District of California, the Department of Justice Criminal Division’s Narcotic and Dangerous Drug Section, the Northern District of Illinois, and their law enforcement partners. A related indictment charging three of the brothers was also unsealed by the Southern District of New York.

To view press conference, please see https://www.justice.gov/live. For related Department of Justice press release, indictments and link to DEA fugitive photos, please see https://www.justice.gov/opa/pr/justice-department-announces-charges-against-sinaloa-cartel-s-global-operation.

According to the indictment, filed in the Northern District of Illinois, the defendants are charged under the “Continuing Criminal Enterprise Statute,” which targets large-scale drug traffickers who are responsible for long-term and complex drug conspiracies. They are also charged with additional drug trafficking, money laundering, firearms and violent crimes.

The indictment offers the most comprehensive look yet at the operations of the Sinaloa Cartel dating back 15 years. The indictment describes the cartel’s alleged drug transportation and distribution networks; its financial infrastructure that has laundered hundreds of millions of dollars in illicit proceeds; and the extensive use of violence to maintain power, including an internal power struggle

The Chapitos are alleged to have repeatedly and consistently obtained and transported multi-ton quantities of cocaine from and through Central and South America, including Colombia, Ecuador, Venezuela, Peru, Panama, Costa Rica, Honduras, and Guatemala, into Mexico, stored that cocaine throughout Mexico, and transported it across the U.S.-Mexico border for further distribution throughout the United States. The Chapitos and members of the Sinaloa Cartel also allegedly obtained, manufactured, and transported other drugs, including marijuana, heroin, and methamphetamine, knowing and intending that such drugs would be imported into and distributed throughout the United States. The Chapitos also allegedly obtained precursor chemicals for the manufacture of synthetic drugs and operated laboratories to manufacture methamphetamine. 

The indictment said the defendants and other members and associates of the Sinaloa Cartel used, and caused to be used, various means to evade and escape law enforcement and military personnel and to protect their drug distribution activities, including on October 17, 2019, at what is known as the “Battle of Culiacán,” when the Mexican National Guard captured and then released Ovidio Guzmán López during a gunfight in Sinaloa state.

The indictment said the defendants obtained guns and other weapons; bribed corrupt public officials; and incited, threatened and engaged in violence, including murder, kidnapping, assault, and battery against law enforcement, rival drug traffickers, and members of their own drug trafficking organization.

The Chapitos allegedly used cargo aircraft, private aircraft, submarines and other submersible and semi-submersible vessels, container ships, supply vessels, go-fast boats, fishing vessels, buses, rail cars, tractor trailers, automobiles, and private and commercial interstate and foreign carriers to transport their drugs and precursor chemicals. They allegedly maintained a network of couriers, tunnels, and stash houses throughout Mexico and the United States to further their drug-trafficking activities. The Chapitos allegedly used these networks to import the drugs into the United States. 

“Today, the Justice Department is announcing significant enforcement actions against the largest, most violent, and most prolific fentanyl trafficking operation in the world – run by the Sinaloa Cartel, and fueled by Chinese precursor chemical and pharmaceutical companies,” said Attorney General Merrick B. Garland. “Families and communities across our country are being devastated by the fentanyl epidemic. Today’s actions demonstrate the comprehensive approach the Justice Department is taking to disrupt fentanyl trafficking and save American lives.”

“Today, we deliver the most crushing blow to the Sinaloa Cartel since the conviction of Chapo Guzman,” said U.S. Attorney Randy Grossman. “We have charged Chapo’s four sons with leading a criminal enterprise built on trafficking tons of deadly drugs into our nation, money laundering, and murder. This case and others we have brought out of the Southern District of California demonstrate our unwavering resolve to dismantle the Sinaloa Cartel by attacking it at every level.” Grossman thanked the prosecution team and dedicated law enforcement partners at the FBI, HSI, DEA and IRS for their extraordinary work on this case.

“These indictments have been a long time in the making and we wouldn’t be here without the collaboration of our local, state, federal, and international partners,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “While there will always be more work to be done, these indictments will continue the dismantlement of an extremely vicious criminal enterprise that has been a primary driver of violence in our communities. We will continue to leverage our law enforcement partnerships to keep pressure on transnational criminal organizations like Los Chapitos.”

“Dismantling this notorious criminal organization flooding the U.S. with deadly narcotics and brutal criminal activity takes the collaboration of a multitude of law enforcement agencies and we are seeing the results of our collective efforts in today’s indictment,” said Special Agent in Charge Chad A. Plantz, HSI’s San Diego Field Office. “HSI proudly stands with our local, state and federal partners as we disrupt and dismantle criminal organizations such as the Sinaloa Cartel to end the violence they fuel across the country.

“The indictment alleges that for years, Joaquín Guzmán Loera’s (El Chapo) sons have destroyed lives and communities through drug trafficking and violence: their time is up,” said DEA Special Agent in Charge Shelly Howe. “These indictments were made possible by our cooperation with local, state, and federal partners. These partnerships demonstrate our collective commitment to tracking down, apprehending, and dismantling one of the strongest drug trafficking cartels from the top down.”

“The indictment alleges that the Chapitos moved drugs and money on a grand scale, and secured and maintained power with intimidation and violence,” said IRS-CI Chief Jim Lee. “Today, we say, no more. For the special agents of IRS Criminal Investigation, the work of investigating dangerous criminals never stops. This indictment shows our commitment to aggressively go after those committing financial crimes who are profiting from their illegal activities no matter who they are or where they commit the crime.”

Once led by the Chapitos’ father, Joaquin Guzman Loera, aka El Chapo, and Ismael Zambada Garcia, aka El Mayo, the Sinaloa Cartel’s members and associates – allegedly including the Chapitos – smuggled significant quantities of drugs through Mexico and into the United States.

Following Guzman Loera’s arrest in January 2016 and extradition to the United States in January 2017, the Chapitos 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 Damaso Lopez Nunez, his family, and his associates and, as a result, became principal leaders and drug traffickers within the Sinaloa Cartel.

The U.S. Department of State, through its Narcotics Rewards Program, is offering rewards of up to $10 million for information leading to the arrest and/or conviction of Ivan Guzman Salazar, Alfredo Guzman Salazar, and Ovidio Guzman Lopez and up to $5 million for information leading to the arrest and/or conviction of Joaquin Guzman Lopez.

Assistant U.S. Attorney Matthew J. Sutton for the Southern District of California and Acting Deputy Chief Katharine Wagner and Trial Attorney Kirk Handrich of the Criminal Division’s Narcotic and Dangerous Drug Section, and Assistant U.S. Attorneys Andrew Erskine and Erika Csicsila for the Northern District of Illinois, are prosecuting the case.

U.S. Attorney Grossman thanked federal, state and local law enforcement for the coordinated team effort in the culmination of this investigation. The FBI San Diego Field Office and Washington Field Office, Homeland Security Investigations San Diego and Nogales Office, DEA’s San Diego Division and Chicago Division, and IRS Criminal Investigation are investigating the case.

This prosecution is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

DEFENDANTS                                                                     Case Number 09-CR-383 (ND-IL)          

*Ivan Guzman Salazar                                               Age: 40                                  Sinaloa, MX

*Alfredo Guzman Salazar                                          Age: 37                                   Sinaloa, MX

*Joaquin Guzman Lopez                                            Age: 36                                   Sinaloa, MX

 Ovidio Guzman Lopez                                              Age: 33                                   Sinaloa, MX

*Fugitives

An indictment and or complaint is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

SUMMARY OF CHARGES

Conspiracy to Distribute Controlled Substances in violation of Title 21 U.S.C. §§ 841 and 846

Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.

Continuing Criminal Enterprise, in violation of Title 21 U.S.C. §§ 848(a) and (b)

Term of custody including a mandatory minimum 20 years and up to life imprisonment, $2 million fine.

The defendants are charged as the principal administrators, organizers or leaders of the enterprise or is one of several such principal administrators, organizers, or leaders; and the violation involved 300 times the quantity of a substance described in subsection 841(b)(1)(B) (100 grams of heroin, 500 grams of cocaine, 100 kilograms of marijuana or 50 grams of Methamphetamine mixture), which is mandatory life imprisonment.

Conspiracy to Import Controlled Substances, in violation of Title 21 U.S.C. §§ 952, 960 and 963. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.

Conspiracy to Distribute Controlled Substances for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963; Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.

Distribution of a Controlled Substance, in violation of Title 21 U.S.C. § 841(a)(1); Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.

Conspiracy to Commit Money Laundering, in violation of Title 18 U.S.C. §§ 1956 (a)(2)(A) and (h); Term of custody up to 20 years imprisonment, a fine of the greater of $500,000 or twice the value of the monetary instrument or funds involved.

Use and Possession of a Firearm During a Drug Trafficking Crime, in violation of 924(c)(1)(A), (c)(1)(B). Term of custody up to life imprisonment, and a mandatory consecutive sentence of 30 years imprisonment.

AGENCIES

Federal Bureau of Investigation

Homeland Security Investigations

Drug Enforcement Administration

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, Narcotics and Dangerous Drug Section

Department of Justice, Office of International Affairs

Department of Justice, Office of Enforcement Operations, Electronic Surveillance Unit

U.S. Attorney’s Office for the Northern District of Illinois

Department of Treasury, Office of Foreign Asset Control

San Diego County District Attorney’s Office

San Diego Law Enforcement Coordination Center

Interpol