Southern District of California

NEWS RELEASE SUMMARY – April 13, 2023

SAN DIEGO – Jonathan Sandoval, a former contract employee at a San Diego Navy hospital, pleaded guilty in federal court today to stalking his former co-worker who is a United States military service member.  

According to his plea agreement, Sandoval intentionally harassed and intimated the military service member through several unwanted acts. On March 8, 2022, Sandoval rifled through the victim’s office and belongings while disregarding her requests to stop. On that same day, while in her office, Sandoval displayed a knife to the victim. Sandoval also sent the victim messages through internet messaging platforms even after the victim told him to stop sending her messages.

Sandoval admitted that he installed a hidden camera in the victim’s office without her knowledge and recorded video of the victim undressing and changing clothes in her office. And then, on March 15, 2022, Sandoval emailed the victim nude images he had taken without her knowledge and wrote in the email: “This is you naked. I’ll make sure and send all your videos of you changing. Have fun at work.”

“Stalking, harassing and surveilling someone with a secret camera is an extreme violation of privacy that causes severe distress in victims,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office is committed to protecting victims of stalking and holding perpetrators accountable for malicious activity over the internet and in person.”  Grossman thanked the prosecution team and Naval Criminal Investigative Service for their excellent work on this case.

“Mr. Sandoval deserves to be held fully accountable for his reprehensible actions to harass, surveil, and intimidate a service member,” said Special Agent in Charge Joshua Flowers of the NCIS Southwest Field Office. “NCIS and our law enforcement partners remain committed to fully investigating and rooting out criminality within the ranks that threatens the safety of the Department of the Navy family.”

If you or someone you know has experienced cyberstalking by an active duty service member, please contact the following anonymous tip lines: https://www.ncis.navy.mil/Resources/NCIS-Tips/

(Navyand Marines), https://www.cid.army.mil/report-a-crime.html (Army), and https://www.osi.af.mil/Submit-a-Tip/ (Air Force), or call the Department of Defense Hotline at (800) 424-9098. Victims of cyberstalking by non-active-duty members should contact local law enforcement or the FBI field office.

DEFENDANTS                                             Case Number 23cr00178-RSH                                

Jonathan Sandoval                                          Age: 30                                   Calexico, CA

SUMMARY OF CHARGES

Stalking – Title 18, U.S.C., Section 2261A(2)(B)

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

AGENCY

Naval Criminal Investigative Service

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

NEWS RELEASE SUMMARY – April 11, 2023

SAN DIEGO – A two-year investigation by FBI and DEA has resulted in the indictment of twelve people, the takedown of a transnational criminal organization that allegedly laundered at least $16.5 million for the Sinaloa cartel, and the rescue of two victims of an extortion plot.

Defendant Cristian Amaya Nava was the first to be sentenced in federal court yesterday to 60 months in prison in connection with the extortion and money laundering charges. In his plea agreement, he admitted that in February of 2021, he forced two victims to withdraw funds from their own accounts to repay a drug debt, under threat of harm to themselves and their families.  In addition, he admitted that he laundered over $2.4 million for the cartel.

According to the superseding indictment, an investigation was initiated in the fall of 2020 after FBI agents identified a complex money laundering organization allegedly led by Enrique Daan Esparragoza Rosas of Culiacan, Sinaloa, Mexico. The indictment said Esparragoza’s organization used a network of shell companies incorporated in Wyoming to launder millions of dollars in cash belonging to the Sinaloa Cartel. The shell companies and a sophisticated financial network were created and overseen by Luis Ramirez, a U.S. citizen residing in Mesa, Arizona, the indictment said.

Ramirez and Esparragoza allegedly directed and facilitated employees of the money laundering organization to travel to cities throughout the United States to pick up bulk cash belonging to narcotics traffickers. The employees picked up the bulk cash in Chicago, Omaha, Boston, New York City, Baltimore, Charlotte, Philadelphia and other cities. Narcotics traffickers delivered bulk cash in amounts of up to $200,000 to the employees in hotel rooms and parking lots. Following the delivery of the illegal money, the criminal organization laundered the funds through the shell companies and then transferred the laundered funds to bank accounts in Mexico.  In total, dozens of bank accounts used by the organization were targeted, resulting in the seizure of $1 million from those accounts plus about $197,430 in bulk cash.  

In November 2020, the FBI worked with the DEA Chicago Field Office to conduct an operation using information from the investigation which resulted in the seizure of 368 pounds of crystal methamphetamine and 10 kilograms of heroin, allegedly from defendants Sugey Caro Salazar and Idsel Valenzuela in LaPorte, Indiana. They are accused of delivering cash to an employee of the money laundering organization. 

According to the indictment, funds laundered by the organization were used to purchase a Volvo tractor-trailer that FBI agents seized near Las Vegas; and aircraft and aircraft engines for export to Mexico, among other things.

 In the extortion plot, the FBI’s efforts resulted in a successful rescue of two victims who were being extorted by the money laundering organization in February 2021. Prior to the extortion, one of the victims, an employee of the money laundering organization, began stealing illicit funds from a bank account that he controlled for the organization. Under pressure from the organization to return the stolen funds, the victim and his family member concocted an unsuccessful scheme to repay the debt: He stole an additional $30,000 from the money laundering organization to purchase a tortilla machine, intending to resell it for a profit. The pair owed a substantial debt to the money laundering organization. 

According to the indictment, when Esparragoza and Ramirez learned of the theft, they conspired to threaten and extort the pair to repay the funds.  Esparragoza sent defendant Amaya Nava to threaten the men and their families.  Amaya Nava has admitted that he drove the two men around Imperial and San Diego County to collect money from bank accounts they controlled. According to admissions in Amaya Nava’s plea agreement, Esparragoza also directly threatened the men and their families during several phone conversations that day, telling them that two truckloads of men from Tijuana would “take care of them” if they did anything stupid. 

The FBI learned of the ongoing extortion after being alerted by an informant and began tracking the victims and Amaya Nava’s movements.  Amaya Nava drove with the men from El Centro to San Diego in an effort to collect additional money from an associate of one of the victims. FBI agents coordinated with the National City Police Department to conduct a traffic stop wherein Amaya Nava was arrested and the two victims were rescued.  

To date the investigation has resulted in the arrests of Amaya Nava and Luis Ramirez, who were charged with extortion and money laundering charges; Ivan Correia Zamora, Ricardo Torres, Kimberlly Reyes, Hector Francisco Vizcaino Moreno, Luis Armando Avila, and Cheliann Rivera Vazquez who are facing money laundering charges; Melvin Rosado (aka) Cristian Cruz Polanco has been arrested on money laundering and aggravated identity theft charges. Sugey Caro Salazar and Idsel Valenzuela have been arrested and charged with narcotics trafficking and money laundering. Enrique Daan Esparragoza Rosas has been charged with money laundering and extortion offenses. Enrique Daan Esparragoza Rosas has been charged with money laundering and extortion offenses. All but two defendants are pending trial. Enrique Daan Esparragoza Rosas and Ivan Correia are fugitives.

“Mexican drug cartels cannot succeed without money launderers,” said U.S. Attorney Randy Grossman. “Our office will prosecute not only those who traffic in drugs but also those who enable the drug traffickers through sophisticated shell corporations and multiple bank accounts.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.

“This operation highlights how the FBI and our law enforcement partners are joining efforts to dismantle organized, violent, criminal enterprises,” said Special Agent in Charge Stacey Moy of the FBI San Diego Field Office. “These enterprises create a space for cartels to exist and we will spare no resources when it comes to addressing the criminals who enable the flow of poison to our communities.”

“Drug cartels exist to profit from the sale of poison to our communities,” said Special Agent in Charge Shelly Howe. “The DEA and our law enforcement partners will continue to target and dismantle money laundering organizations operating in the Imperial Valley that facilitate the movement of drug proceeds from the United States to Mexico-based drug cartels.” 

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

DEFENDANTS                                             Case Number 22cr2185-BAS                           

Enrique Daan Esparragoza Rosas                   Age: 37                       Culiacan, Sinaloa, Mexico

Luis Ramirez                                                  Age: 41                       Mesa, Arizona

Ricardo Torres                                                Age: 30                       El Centro, California

Kimberlly Reyes                                             Age: 24                       Mexicali, Mexico

Hector Francisco Vizcaino Moreno               Age: 33                       Calexico, California

Cristian Jose Polanco                                      Age: 52                       Philadelphia, Pennsylvania

Cheliann Rivera Vazquez                               Age: 29                       Philadelphia, Pennsylvania

Luis Armando Avila                                       Age: 22                       Ontario, CA

SUMMARY OF CHARGES

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

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

Esparragoza Rosas and Luis Ramirez - Only

Hobbs Act Extortion - Title 18, U.S.C., Section 1951(a)

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

Cristian Jose Polanco – Only

Title 18, U.S.C., Section 1028A(a)(1) – Aggravated Identity Theft

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

Case Number 21cr1693

Cristian Amaya Nava                                     Age: 37                       Calexico, CA

 

SUMMARY OF CHARGES

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

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

Hobbs Act Extortion - Title 18, U.S.C., Section 1951(a)

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

Case Number 22cr1477

Ivan Correia Zamora                                      Age: 37                       San Diego, California

SUMMARY OF CHARGES

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

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

Case Number 22cr0612 and 22cr0776

Sugey Caro-Salazar                            Age: 46                                   La Porte, Indiana

Idsel Valenzuela                                 Age: 27                                   La Porte, Indiana

SUMMARY OF CHARGES

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

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

Conspiracy to Distribute Methamphetamine – Title 21, U.S.C., Section 846 and 841(a)(1)

Maximum penalty: Life in prison; mandatory minimum 10 years in prison and $10,000,000 fine

AGENCIES

Federal Bureau of Investigation

Drug Enforcement 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 – April 6, 2023

SAN DIEGO – Cecilio Jimenez-Bautista of Mexico appeared in federal court today to face charges that he sexually abused a 17-year-old unaccompanied minor who he and his brother guided from Tijuana, Mexico into the United States in June 2022.

According to allegations in a grand jury indictment, Jimenez-Bautista and his brother, Alexander Jimenez-Bautista, guided the girl and other Mexican citizens from Mexico to the United States through the Otay Mountain Wilderness area with the intent to violate the immigration laws of the United States. Over the course of three days, the group was taken along remote, rugged and desolate paths before being apprehended by U.S. Border Patrol agents at an area near Otay Lakes Road.

During those three days, Cecilio Jimenez-Bautista repeatedly isolated the girl from the group and placed her in fear, and sexually abused her, the indictment said. He ultimately used her fear of him to cause her to engage in sex with him, causing her serious bodily injury.

Both brothers face charges related to their role as foot guides for an alien smuggling organization from June 2022 to February 2023.

“We will do everything in our power to protect children from harm,” said U.S. Attorney Randy Grossman. “The United States is committed to protecting the rights of all individuals on our soil, especially the most vulnerable.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“The dangers of human smuggling cannot be overstated,” said Chad Plantz, special agent in charge, HSI San Diego. “According to the complaint, this child entrusted her safety to smugglers. They, in turn, demonstrated that they value profit over human life. HSI and its law enforcement partners are committed to investigating organizations and individuals involved in the exploitation of migrants.”

“We are continuously watchful and alert to deter, detect and prevent threats to any individual,” said San Diego Sector Chief Patrol Agent Aaron M. Heitke. “This includes working together with our law enforcement partners to identify smugglers, and their organizations, who take advantage and profit by placing human lives at risk.”

Assistant U.S. Attorneys Katherine McGrath and Edward Chang of the Southern District of California, and Trial Attorney Danielle L. Hickman of the Human Rights and Special Prosecutions Section of the Criminal Division of the Department of Justice are prosecuting the case.

DEFENDANTS                                             Case Number 22cr1550-LL                         

Cecilio Yonatan Jimenez-Bautista                 Age: 26                                  

Alexander Jimenez-Bautista                          Age: 20

SUMMARY OF CHARGES

Cecilio Jimenez Bautista

Conspiracy to Bring in Aliens Resulting In Serious Bodily Injury, 8 U.S.C. §§ 1324(a)(1)(A)(i), (v)(1), and (a)(1)(B)(iii)

Maximum Penalty: Twenty years 

Abusive Sexual Contact, 18 U.S.C. § 2244(b)

Maximum Penalty: Two years

Sexual Abuse by Fear, 18 U.S.C. § 2242(1)

Maximum Penalty: Life in prison

Bringing an Alien to the United States for Financial Gain and Aiding and Abetting,

8 U.S.C. § 1324(a)(2)(B)(ii), and 18 U.S.C. § 2

Maximum Penalty: Fifteen years (Five years mandatory minimum)

Alexander Jimenez-Bautista

Conspiracy to Bring in Aliens Resulting In Serious Bodily Injury, 8 U.S.C. §§ 1324(a)(1)(A)(i), (v)(1), and (a)(1)(B)(iii)

Maximum Penalty: Twenty years

Bringing an Alien to the United States for Financial Gain and Aiding and Abetting,

8 U.S.C. § 1324(a)(2)(B)(ii), and 18 U.S.C. § 2

Maximum Penalty: Fifteen years (Five years mandatory minimum)

AGENCY

Homeland Security Investigations

U.S. Border Patrol

Joint Task Force Alpha

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

This case was supported by Joint Task Force Alpha (JTFA).  JTFA was created by the Attorney General in June 2021 in partnership with the Department of Homeland Security (DHS), to strengthen the Department’s overall efforts to combat these crimes based on the rise in prolific and dangerous smuggling from and through Central America and impacting our border communities.  JTFA’s goal is to disrupt and dismantle those human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse or exploit migrants, present national security risks, or engage in other types of transnational organized crime.

The U.S. Attorney’s Office for the Southern District of California helps lead JTFA, which is comprised of detailees from southwest border U.S. Attorney’s Offices, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California, and dedicated support for the program is also provided by numerous components of the Criminal Division that are part of JTFA – led by the Human Rights and Special Prosecutions Section (HRSP), and supported by the Office of Prosecutorial Development, Assistance, and Training (OPDAT), the Narcotic and Dangerous Drug Section (NDDS), the Money Laundering and Asset Recovery Section (MLARS), the Office of Enforcement Operations (OEO), the Justice Department’s Office of International Affairs (OIA), and the Organized Crime and Gang Section (OCGS).  JTFA is made possible by substantial law enforcement commitment from DHS, FBI, Drug Enforcement Administration (DEA), and other partners. 

NEWS RELEASE SUMMARY — April 4, 2023

SAN DIEGO— Kenneth Yonika of Alpine, California pleaded guilty in federal court today to evading federal taxes in 2017, 2018 and 2020.

As part of his guilty plea, Yonika agreed to pay $669,133 in restitution to the Internal Revenue Service and forfeit $1.9 million seized by the Internal Revenue Service Criminal Investigation (IRS-CI) and Homeland Security Investigations (HSI).

According to court documents, in 2017, 2018 and 2020, Yonika and his partners utilized a foreign-based nominee to sell securities in the United States and abroad. To offer the securities, Yonika and others had the nominee sign paperwork falsely reporting the nominee owned the securities. Yonika and others then opened a United States bank account to receive millions of dollars in profits from the sale of the securities, which were distributed to Yonika and his partners.

In an effort to hide the income of the securities sales, Yonika engaged in numerous financial transactions involving his personal bank accounts and bank accounts belonging to his company, Pacific Crest Equity Partners, Inc. For example, Yonika conducted dozens of wire transfers from both personal bank accounts and Pacific Crest bank accounts to family members and used Pacific Crest Equity Partner bank accounts to purchase real property and pay for personal expenses. Yonika admitted that his transactions with the nominee, Pacific Crest Bank accounts, and family members were all willful attempts to criminally evade income taxation.

“When someone cheats the tax system, it hurts all honest taxpayers and the integrity of our institutions,” said U.S. Attorney Randy Grossman. “This office will pursue and seek a just punishment for these crimes.” Grossman thanked the prosecution team and agents from IRS and Homeland Security Investigations for their excellent work on this case.

“Mr. Yonika attempted to bypass rules that protect our capital markets, and then skirted U.S. tax laws to evade paying his fair share on the millions of dollars he profited,” said Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation’s Los Angeles Field Office.  “At this time of year, when hard working Americans are honestly and diligently preparing their tax returns, it is unacceptable that Mr. Yonika evaded his taxes by taking overt steps to hide his income. The IRS Criminal Investigation and its law enforcement partners are determined to bring those that commit tax fraud to justice.”

“HSI Costa Pacifico Money Laundering Task Force will continue to work with our law enforcement partners to investigate and prosecute criminals that use complex financial schemes to defraud innocent investors,” said HSI San Diego Special Agent in Charge, Chad Platz. “Offshore accounts and shell companies will not deter us from holding these bad actors accountable.”

Sentencing is scheduled for June 30 at 8:30 a.m. before U.S. District Judge Gonzalo Curiel.

DEFENDANT                                               Case Number 21CR2542-TWR                               

Kenneth Yonika                                              Alpine, CA                  Age: 45

SUMMARY OF CHARGES

Tax Evasion—Title 26, U.S.C., Section 7201

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

Maximum penalty: Five years in prison, $250,000 fine or twice the gross gain or loss from the offense, whichever is greater; forfeiture and restitution

AGENCY

IRS Criminal Investigation

Homeland Security Investigations

NEWS RELEASE SUMMARY – April 4, 2023

SAN DIEGO – Former San Diego Police Vice Detective Peter Griffin and three co-defendants pleaded guilty in federal court today in connection with their operation of five illicit massage businesses in California and Arizona that profited for years by exploiting women to engage in commercial sexual services under the guise of offering therapeutic massage services.

According to court documents, Griffin, who left the San Diego Police Department in 2002, and codefendants Kyung Sook Hernandez, Yu Hong Tan, and Yoo Jin Ott owned and operated “Genie Oriental Spa,” “Felicita Spa,” “Blue Green Spa,” “Maple Spa,” and “Massage W Spa,” located in the greater San Diego area and in Tempe, Arizona, between 2013 and August 2022. 

The criminal scheme included incorporating their businesses with state agencies, managing the finances of the businesses, advertising commercial sexual services online, recruiting and employing women to perform commercial sexual services in the businesses, and benefiting financially from the illegal enterprises. The defendants leased multiple commercial properties as storefronts, leased and bought residential properties to use as housing for employees, and secured credit card processing equipment to operate the illicit massage businesses.

Griffin, who is also a former attorney, previously worked as a detective with the Vice Operations Unit of the San Diego Police Department, a unit tasked with dismantling the very businesses he operated and promoted for personal profit. According to his plea agreement, throughout the course of the scheme, Griffin used the experience and skills he acquired through his work as a vice detective – and in at least one instance, his badge – to help the businesses evade law enforcement; thwart regulatory inspections, investigations and any official action against the businesses; conceal evidence and maintain a façade of legitimacy. 

On another occasion, Griffin told an employee that he was a former police officer and instructed her not to “open [her] mouth” about her employment at the illicit massage business.  Griffin also used resources he had access to by virtue of his private investigator license to obtain information on customers and employees on behalf of the illicit massage businesses.  Through the course of the scheme, the defendants encouraged and expected employees to perform commercial sexual services inside the businesses and relied on Griffin’s law enforcement background to help conceal the criminal conduct.  When one employee initially refused to perform commercial sexual services, one of the defendants instructed her to “leave [her] morals in China” in order to “make the customers happy.”

“This criminal scheme involved illicit businesses that exploited a vulnerable population,” said U.S. Attorney Randy Grossman. “We are committed to prosecuting the offenses that impact not only the employees of these illicit businesses, but the safety of the communities in which they operate.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“The defendant – a former vice detective who once took an oath to uphold our laws – knew more than most that illicit massage businesses cruelly profit by exploiting women for commercial sex,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are committed to prosecuting the proprietors of these illegal businesses, and to shining a light on those places where sexual exploitation and trafficking persist.”

“Peter Griffin misused the expertise acquired during his time as a vice detective and abused the respect that came with his badge – all to ensure that his ‘massage parlors’ operated under the radar for his personal financial gain,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The guilty pleas of Griffin and his co-defendants underscore the Justice Department’s commitment to holding accountable those who profit from crime, particularly crimes that involve the exploitation of vulnerable populations and the abuse of trust that communities place in law enforcement. This plea would not have been possible without the innovative and collaborative efforts of our partners in federal and local law enforcement, the Human Trafficking Prosecution Unit, and the U.S. Attorney’s Office for the Southern District of California.”

“No one is above the law. I’m appalled that someone who once took an oath to protect our community could prey on the vulnerable,” said San Diego Chief of Police David Nisleit. “I’m proud of our own SDPD officers who helped make this investigation possible and I commend our partner agencies for their diligence in holding Peter Griffin and his accomplices accountable. This is an important step toward justice for the survivors of these crimes.”

“Investigating criminal activity that targets vulnerable individuals and communities is one of IRS-CI’s top priorities,” said Tyler Hatcher Special Agent in Charge of IRS Criminal Investigation's Los Angeles Field Office. “Peter Griffin and his co-defendants will now face the consequences of their almost decade long illegal business that took advantage and victimized women within our community.  IRS-CI is committed to using our financial expertise to trace illicit funds and bring down these criminal enterprises.”

“Griffin betrayed the pledge he took to uphold our laws and to protect the members of our community through his egregious misuse of power and knowledge,” said Acting Special Agent in Charge John Kim of the FBI’s San Diego Field Office. “We appreciate the collaboration of our federal, state, and local partners to ensure that justice is served to Griffin and his co-conspirators. There is no place in our community for those who negligently prioritize money over people.”

“This trusted member of the community and his associates profited from the illegal proceeds of the commercial sex industry which is often accompanied by other forms of criminal activity such as money laundering,” said Chad Plantz, special agent in charge, HSI San Diego. “This law enforcement officer utilized his institutional knowledge of the job to betray the public trust. HSI will continue working with our federal, state, and local law enforcement partners to hold accountable those who profit off of individuals lured into this exploitative industry.”

The investigation was led by Homeland Security Investigations, Internal Revenue Service Criminal Investigation, and the San Diego Human Trafficking Task Force, a regional, multi-agency effort led by the California Department of Justice dedicated to supporting survivors and holding traffickers accountable.  The task force is comprised of numerous federal, state, and local agencies, as well as the Southwest Border High Intensity Drug Trafficking Area program. 

The investigation was also supported by the Federal Bureau of Investigations, the San Diego Police Department, the San Diego Sheriff’s Department, the Escondido Police Department, the San Diego District Attorney’s Office, and the Tempe, Arizona Police Department.  Assistant U.S. Attorney Jill Streja of the Southern District of California, Trial Attorney Caylee Campbell of the Money Laundering and Asset Recovery Section of the Criminal Division of the Department of Justice, and Trial Attorney Leah Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.

DEFENDANTS                                             Case Number 22cr1824-JO                              

Peter Griffin                                                    78

Kyung Sook Hernandez                                 58

Yu Hong Tan                                                  56

Yoo Jin Ott                                                     46

SUMMARY OF CHARGES

Conspiracy, Interstate and Foreign Travel or Transportation in Aid of Racketeering (ITAR),

Maximum Penalty: Five years in prison, $250,000 fine

Conspiracy to Commit Wire Fraud

Maximum Penalty: Thirty years in prison, $1 million fine

Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity

Maximum Penalty: Ten years in prison, $250,000 fine or twice amount of criminally derived property

Misprision of a Felony

Maximum Penalty: Three years in prison, $250,000 fine

AGENCIES

Homeland Security Investigations

Internal Revenue Service Criminal Investigations

Federal Bureau of Investigation

San Diego Human Trafficking Task Force

Escondido Police Department

San Diego Police Department

San Diego District Attorney’s Office

San Diego County Sheriff’s Department

Tempe, Arizona Police Department 

NEWS RELEASE SUMMARY – March 28, 2023

SAN DIEGO – Dr. Michael Villarroel, a U.S. Navy doctor, pleaded guilty today in federal court, admitting that he and others conspired to defraud the Navy by faking or exaggerating injuries to obtain insurance payments intended to help service members recovering from traumatic injuries. Villarroel acknowledged he knew the claimed injuries were false or exaggerated but signed off on applications for a share of the insurance payments.

Participants in the scheme obtained about $2 million in payments from the Traumatic Servicemembers Groups Life Insurance (TSGLI) program which is funded by service members and the Navy. Villarroel personally obtained more than $180,000 in kickbacks.

“These military healthcare dollars, which were intended to benefit injured and traumatized service members, instead funded a fraudulent windfall,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office and our agency partners will relentlessly pursue justice for victims of fraud schemes that harm our service members and taxpayers.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

Villarroel admitted that from 2012 to at least December 2015, he conspired to commit wire fraud with Christopher Toups, a chief petty officer construction mechanic in the Navy; Kelene Meyer, Toups’ spouse and a nurse; and others. Toups prodded other service members to submit claims, told them to provide medical records to Meyer, requested part of the insurance payment in return, and distributed shares to Meyer and Villarroel. Meyer used her medical background to falsify or doctor supporting records to reflect fake or exaggerated injuries.

Villarroel claimed to have reviewed medical records and verified disabilities consistent with the injuries as needed for claims to be processed and qualify. At times Villarroel supported his determination by falsely stating he interviewed the claimant. At other times Villarroel gave Meyer medical records belonging to others to use in fabricating claims. Toups paid Villarroel in cash and by cashier’s check and, at points, Villarroel conducted transactions in amounts under $10,000 to evade currency transaction reporting requirements.

Villarroel is the tenth defendant to plead guilty to crimes committed under the scheme. Several conspirators were members of Explosive Ordinance Disposal Expeditionary Support Unit One (“EOD ESU One”), based in Coronado, California.

“Dr. Villarroel defrauded the Navy and the U.S. taxpayer by participating in a reprehensible scheme to wrongly obtain more than $2 million that should have been directed to wounded service members,” said Acting Special Agent in Charge Michael D. Butler II of the NCIS Economic Crimes Field Office. “NCIS and our partners remain committed to investigating all allegations of fraud that harms Department of the Navy service members and their families.”

“Dr. Villarroel abused his position of trust to enrich himself and his co-conspirators,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “As a medical doctor and Naval Commander, Dr. Villarroel is held to a higher standard which makes this scheme to defraud the Traumatic Service Members Group Life Insurance program even more egregious. The FBI would like to thank our partners at Veterans Affairs – Office of Inspector General and Naval Criminal Investigative Service for their tremendous partnership on this case.”

“Fraudulently filing claims for unearned TSGLI benefits diverts compensation from deserving service members who suffered serious and debilitating injuries while on active duty,” said Special Agent in Charge Rebeccalynn Staples of the Department of Veterans Affairs Office of Inspector General’s Western Field Office.  “The VA OIG thanks the United States Attorney’s Office and our law enforcement partners for their efforts in bringing this defendant to justice.”

Villarroel is scheduled to be sentenced on June 16 at 9 a.m. by U.S. District Judge Janis L. Sammartino.

DEFENDANT           18CR1674-JLS

Michael Villarroel      48        Coronado, California

RELATED CASES

Kelene Meyer                         18CR1674-JLS                       44                    Jacksonville, FL

Christopher Toups                  18CR1674-JLS                       43                    Woodstock, GA

Paul Craig                               18CR1674-JLS                       47                    Austin, TX

Richard Cote                           18CR1674-JLS                       45                    Oceanside, CA

Earnest Thompson                  18CR1674-JLS                       46                    Murrieta, CA

Ronald Olmsted                      20CR0659-JLS                       48                    Mobile, AL

Anthony Coco                         20CR0197-JLS                       43                    San Diego, CA

Stephen Mulholland               20CR0052-JLS                       51                    Panama City Beach, FL

Roy Sedano                             21CR1493-JLS                       44                    Spring Valley, CA

CHARGES

18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud

Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution

AGENCIES

Department of Veterans Affairs, Office of Inspector General

Federal Bureau of Investigation

Naval Criminal Investigative Service

NEWS RELEASE SUMMARY – March 28, 2023

SAN DIEGO – Jose Manuel Gonzalez was sentenced in federal court yesterday to 51 months in prison for two unrelated human smuggling incidents - the first of which was committed in 2019 and the second in 2021 while the defendant was on supervised release for the 2019 charges. 

According to his plea agreement, in the late evening of July 5, 2019, Border Patrol agents caught Gonzalez as he was transporting eight individuals in a minivan after they crossed the border illegally from Mexico. Gonzalez was charged with Transportation of Illegal Aliens, granted bail on that offense, and remained out of custody. Agents and the United States Attorney’s Office continued to investigate Gonzalez’ activities. 

After reviewing Gonzalez’ cellphone records around the day of the offense, the prosecution team discovered that Gonzalez was communicating with unknown co-conspirators in Mexico and a “foot guide” who was responsible for guiding the illegal individuals over the U.S.-Mexico border. The purpose of Gonzalez’ communications with the unknown co-conspirators and the “foot guide” was to avoid law enforcement detection.  After further investigation, the U.S. Attorney’s Office added charges alleging that Gonzalez conspired with others to bring aliens into the U.S. for financial gain.

While on bail, on June 18, 2021, Gonzalez was again caught and arrested for transporting 12 illegal aliens in the back of a pickup truck into the United States. Customs and Border Protection agents attempted to stop Gonzalez, but Gonzalez disregarded  emergency lights and sirens and led them on a high speed chase, narrowly avoiding at least one vehicle and a possible head-on collision during the pursuit.  The undocumented individuals remained hidden in the back of the pickup truck as Gonzalez attempted to evade agents during the high-speed chase.  As a result of this incident, Gonzalez was charged with additional counts alleging the transportation of illegal aliens, plus a count alleging that Gonzalez committed the June 18, 2021 acts while Gonzalez was on Court-ordered pretrial release.

U.S. District Judge Gonzalo Curiel sentenced Gonzalez to 36 months on the human smuggling offenses, plus an additional 15 months for committing the June 2021 offense while on pretrial release, for a total of 51 months in prison.  The sentence also included enhanced penalties for the substantial risk that Gonzalez’ high-speed chase caused; the illegal transportation of a minor; and an aggravated role within the transportation cell’s Alien Smuggling activities. 

“This defendant committed the same crime again after he was caught and released on bond,” said U.S. Attorney Randy Grossman. “This case is more proof that human smugglers care only about money and have zero regard for the safety and well-being of their customers. Please, never trust your life to a smuggler.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“This prosecution is a result of the continued dedication by our agents, and our partners in the U.S. Attorney's office,” said San Diego Border Patrol Sector Chief Patrol Agent Aaron M. Heitke. “We will continue to deliver consequences to the transnational criminal organization operating throughout border region.”

DEFENDANT                                               Case Number 20-cr-03446-GPC                           

Jose Manuel Gonzalez                                    Age: 31                                   Spring Valley, CA

SUMMARY OF CHARGES

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

Bringing in Aliens for Financial Gain and Aiding and Abetting, in violation of 8 U.S.C. § 1324(a)(2)(B)(ii);

Maximum penalty: Five years in prison and a $250,000 fine per count, with a mandatory minimum of three years for the counts under § 1324. 

Transportation and Attempted Transportation of Certain Aliens for Financial Gain, in violation of 8 U.S.C. § 1324(a)(1)(A)(ii) and (a)(1)(B)(i);

Maximum penalty: Ten years in prison and a $250,000 fine per count.

AGENCY

U.S. Customs and Border Protection

U.S. Border Patrol

*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 – March 28, 2023

SAN DIEGO – Otilio Rodriguez Toledo and Alicia Aispuro Hernandez, husband and wife from Thermal, California, pleaded guilty in federal court today to conspiring to smuggle and distribute $2 million worth of Mexican pesticides and veterinary drugs that are not approved for use in the United States.

In pleading guilty, the defendants acknowledged that since at least December of 2018, they had been engaged in smuggling pesticides and veterinary drugs from Mexico into the United States, and then distributing them within the United States. The pesticides involved were primarily Taktic and Bovitraz, which are not registered with the EPA for use in the United States. The smuggled veterinary drugs included Tetragent Aves, Metabolase, Terramicina, Cipio Vet, Baytril Max, Tylovet, Caterrol, Penicilina, and Tylosma, which are not approved by the FDA for use in the United States.

In pleading guilty, the defendants admitted that the smuggled pesticides and veterinary drugs were brought in through the Calexico Port of Entry in Imperial County and placed in storage units near the border. The smugglers would send photographs of the products at the storage units as proof of delivery.

The defendants admitted they later picked up the products from the storage units and distributed them to others within the United States. As part of their plea agreement, the defendants agreed that the value of the smuggled goods was more than $1 million but less than $2.2 million and further agreed that the government could seek the forfeiture of up to $2.2 million in proceeds obtained from the sale of the smuggled goods.

According to experts at the U.S. Environmental Protection Agency and elsewhere, the active ingredient in the pesticides Taktic and Bovitraz is amitraz, which is toxic to bees and humans if it is released into hives and ultimately ends up in honey, honeycomb and beeswax.

Misuse of amitraz-containing products in beehives can result in exposures that could cause neurological effects and possibly reproductive effects in humans from the consumption of contaminated honey. Signs of neurotoxicity from exposure to amitraz has been documented in multiple animal species, including central nervous system depression, decrease in pulse rate, and hypothermia.

“These rules are in place to protect animals, people and the environment from harmful pesticides and drugs,” said U.S. Attorney Randy Grossman. “Public safety is our top priority and we intend to enforce those laws.” Grossman thanked the prosecution team and investigators on the case who relentlessly pursued the leaders of this smuggling organization.

“The defendants in this case smuggled illegal and hazardous chemicals into the United States for profit knowing they were banned and posed a significant health and safety threat to humans, wildlife and the environment,” said Chad Plantz, Special Agent in Charge, HSI San Diego. “This guilty plea highlights HSI’s steadfast commitment to working with our partners to pursue, arrest, and bring to justice anyone who threatens the well-being of our communities.

“The FDA regulates animal drugs as part of its mission to protect the public health, which includes ensuring that prescription animal drugs are lawfully distributed and dispensed pursuant to a valid prescription,” said Acting Special Agent in Charge Brian G. McClune, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to pursue and bring to justice those who attempt to evade the law.”

“The defendants’ conduct put consumers at risk,” said Scot Adair, Special Agent in Charge of the EPA’s criminal enforcement program in California. “The pesticides they attempted to distribute were smuggled into the United States from Mexico and are illegally used in beehives. The defendants in this case made millions of dollars in ill-gotten gains through the illegal sale of this unregistered pesticide.”

The defendants are scheduled to be sentenced by U.S. District Judge John A. Houston on June 21,2023 at 10 a.m. This case is being prosecuted by Assistant U.S. Attorney Melanie K. Pierson from the U.S. Attorney’s Office for the Southern District of California and Senior Trial Attorney Stephen Da Ponte from the Environmental Crimes Section, Environment and Natural Resources Division of the U.S. Department of Justice.

DEFENDANTS                                             Case Number 22cr1965-JAH                           

Otilio Rodriguez Toledo                                             Age: 38                       Thermal, CA

Alicia Aispuro Hernandez                                          Age: 38                       Thermal, CA

SUMMARY OF CHARGES

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

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

INVESTIGATING AGENCIES

Homeland Security Investigations

U.S. Environmental Protection Agency

Criminal Investigations Division

U.S. Food and Drug Administration, Office of Criminal Investigations; California Department of Toxic Substances Control

 

NEWS RELEASE SUMMARY – March 23, 2023

SAN DIEGO – Kevin Lamont Beal of San Diego was sentenced in federal court today to 188 months in prison for knowingly coercing and enticing a teenage girl to engage in commercial sex acts.

According to court records, Beal has a long criminal past involving state convictions for pimping and pandering from 2012 through 2019. 

A complaint was filed against Beal in April 2021, charging him with sex trafficking of underage girls and adult females.  Beal pleaded guilty to federal charges in January 2022. In his plea agreement, Beal admitted that he transported underage girls and women and provided them to customers for commercial sex acts, which took place in California and elsewhere from December 2016 through August 2018. During this time, Beal used his cellular telephone to entice and coerce an underage girl (while she was 16 and 17 years old) for the purpose of having her engage in commercial sex acts and prostitution in San Diego County and elsewhere.  As part of his efforts to entice and coerce this underage girl, Beal continued to communicate with her by text message and through social media for almost two years.

As part of his guilty plea, Beal also admitted that he recruited, transported, and provided another underage girl (while she was 16 and 17 years old) for the purpose of her to engage in commercial sex acts and prostitution from December 2016 through March 2017.  As part of his human trafficking activities, Beal instructed this underage girl to meet with customers, commonly referred to as “johns,” by walking the street, commonly referred to as the “blade” (an area known for prostitution activities).  Beal also caused online advertisements of the underage girl to be posted on various websites for customers solicit her for commercial sex acts. 

Lastly, Beal admitted he recruited, enticed, transported, and provided an adult female for the purpose of her to engage in commercial sex acts and prostitution from April 2018 through May 2018.  As part of his human trafficking activities, Beal also instructed the adult female to meet customers by walking the “blade” and by posting online advertisements offering her to customers for commercial sex acts.  During this time, Beal used force against the adult female by striking her multiple times in the face causing serious bodily injuries. Beal admitted he used a combination of force and coercion to cause the adult female to engage in commercial sex acts. 

“No city is immune from traffickers seeking to entice and coerce underage and adult victims to engage in sex trafficking,” said U.S. Attorney Randy Grossman. “Today’s sentence sends a strong message that we will continue to work together with our local, state, and federal partners to protect our community’s most vulnerable victims from these heinous crimes by prosecuting their traffickers.” Grossman thanked the prosecution team and members of the San Diego Human Trafficking Task Force for their excellent work on this case.

“Sex trafficking is an abhorrent crime with long-lasting consequences,” said San Diego FBI Special Agent in Charge Stacey Moy. “The FBI is committed to the unceasing pursuit of sex traffickers and to the rescue and recovery of the children and adults they victimize. These criminals can only be stopped with the collaboration of our law enforcement partners and the public."

Beal has been detained in custody since his arrest in April 2021.

At the sentencing hearing today, U.S. District Todd W. Robinson not only imposed the 15-year prison sentence, but also ordered Beal to serve a 10-year term of supervised release and to pay a $5,000 mandatory penalty assessment pursuant to the Justice for Victims of Trafficking Act. Beal will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.  Judge Robinson also ordered the criminal forfeiture of a blue, 2015 Maserati Ghibli, $2,420 in U.S. currency, and other personal luxury items by Gucci and Versace.  These personal luxury items were previously ordered as restitution to one of Beal’s trafficking victims in May 2022. 

DEFENDANT                                   Case Numbers: 21CR1565-TWR

Kevin Lamont Beal                            Age: 29           San Diego, CA

SUMMARY OF CHARGES

Coercion and Enticement of a Minor, in violation of Title 18, United States Code, Section 2422(b)

Maximum Penalties: Life in prison; mandatory Sex Offender Registration; a maximum term of supervised release of life; a $5,000 mandatory penalty assessment pursuant to the Justice for Victims of Trafficking Act; mandatory restitution to the victims.

INVESTIGATING AGENCIES

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
• The United States Attorney’s Office, Southern District of California

SAN DIEGO – Jose Cruz Noguez pleaded guilty in federal court today to charges stemming from a March 2, 2021, smuggling incident in which thirteen people died when the vehicle in which they were concealed collided with a tractor trailer near Holtville, California.

In a hearing in United States District Court, the defendant admitted that he and his co-conspirators sought to smuggle a large number of undocumented migrants into the United States by loading them into modified SUVs and breaching an area of the international boundary fence between Mexico and the United States near Calexico, California. In the days leading up to March 2, 2021, the defendant committed various acts for the purpose of carrying out the conspiracy, such as attempting to recruit at least one criminal associate to drive a load vehicle containing as many as 20 undocumented migrants. And during the early morning hours of March 2, 2021, before the smuggling event, Cruz Noguez used his vehicle to scout the area that the load vehicles would be traveling. After confirming there was no law enforcement in the area, defendant’s co-conspirators loaded dozens of undocumented migrants – including at least one minor who was unaccompanied by a parent or guardian – into two modified SUVs and drove them into the United States through a breach they had cut in the international boundary fence. Once successfully in the United States, the two load vehicles traveled west along Interstate 8, and as has been reported in the media, one of the vehicles – a GMC Yukon – caught fire on Interstate 8 near Highway 115. Shortly thereafter, the other vehicle – a Ford Expedition – collided with a tractor-trailer on Highway 115 near Holtville, California. Thirteen individuals in the Ford Expedition died tragically as a result of the accident. In his plea agreement, Cruz Noguez admitted that he and his co-conspirators were smuggling the undocumented migrants into the United States for financial consideration and with the intent to violate the immigration laws of the United States.

The United States Attorney’s Office (USAO) initially indicted Cruz Noguez on April 27, 2021. Following further investigation, the USAO charged him and another individual (who remains a fugitive) in a Third Superseding Indictment on July 15, 2022. Cruz Noguez’s trial had been scheduled to begin on May 15, 2023. Instead, he entered into a plea agreement and pleaded guilty to a Superseding Information charging him with one count of Conspiracy to Bring in Undocumented Migrants and three counts of Bringing In Undocumented Migrants for Financial Gain (which carry a five-year mandatory minimum sentence).

Cruz Noguez is scheduled to be sentenced on June 9, 2023 at 9:00 a.m. before U.S. District Judge Cathy Ann Bencivengo.

This case was supported by Joint Task Force Alpha (JTFA). JTFA was created by the Attorney General in June 2021 in partnership with the Department of Homeland Security (DHS), to strengthen the Department’s overall efforts to combat these crimes based on the rise in prolific and dangerous smuggling from and through Central America and impacting our border communities. JTFA’s goal is to disrupt and dismantle those human smuggling and trafficking networks operating in El Salvador, Guatemala, Honduras, and Mexico, with a focus on networks that endanger, abuse or exploit migrants, present national security risks, or engage in other types of transnational organized crime.

The U.S. Attorney’s Office for the Southern District of California helps lead JTFA, which is comprised of detailees from southwest border U.S. Attorney’s Offices, including the Southern District of Texas, the Western District of Texas, the District of New Mexico, the District of Arizona, and the Southern District of California, and dedicated support for the program is also provided by numerous components of the Criminal Division that are part of JTFA – led by the Human Rights and Special Prosecutions Section (HRSP), and supported by the Office of Prosecutorial Development, Assistance, and Training (OPDAT), the Narcotic and Dangerous Drug Section (NDDS), the Money Laundering and Asset Recovery Section (MLARS), the Office of Enforcement Operations (OEO), the Justice Department’s Office of International Affairs (OIA), and the Organized Crime and Gang Section (OCGS). JTFA is made possible by substantial law enforcement commitment from DHS, FBI, Drug Enforcement Administration (DEA), and other partners.

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: 10 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: 15 years in prison and $250,000 fine

AGENCIES
Homeland Security Investigations
United States Border Patrol
California Highway Patrol
Imperial County Sheriff’s Office

SAN DIEGO – Moises Moreno of Moreno Valley, California, was sentenced in federal court today to 200 months in prison for importing more than 36 kilograms of fentanyl from Mexico into the United States.

After a two-day jury trial in October 2022, a jury found that Moreno knowingly imported more than 80 pounds of counterfeit prescription pills containing fentanyl from Mexico into the United States. During the trial, the prosecution presented evidence that Moreno attempted to smuggle the pills into the United States inside a sophisticated compartment in the roof of his pickup truck. The compartment was created by welding sheet metal underneath the truck’s roof to create a false ceiling where the pills were hidden.

Prosecutors also presented evidence from Moreno’s cell phone and calls Moreno made to unidentified associates after his arrest. During his calls from jail, Moreno bragged about how he “played dumb” after his arrest and “acted like he thought they found weed in his car.” Moreno further boasted to another associate about the amount of drugs he was caught smuggling and sang that he “got keys [a slang term for kilograms] coming from overseas,” a line from a popular hip hop song discussing drug trafficking.

The jury also heard the story Moreno told investigators at the time of his arrest: that he spent the weekend preceding before being caught at the border with a female friend in Mexico. Moreno told investigators that this friend must have set him up to import drugs in the vehicle without his knowledge. At the conclusion of the trial, the jury rejected Moreno’s story and returned a guilty verdict.

“This sentence sends a clear message to any would-be drug courier that you will receive a significant sentence in this district for your role in importing dangerous narcotics like fentanyl,” said U.S. Attorney Randy Grossman.

Grossman thanked the prosecution team and Homeland Security Investigations for their hard work on this case.

“HSI will continue to direct its full range of investigative authorities toward those who smuggle deadly drugs across the border and into our communities,” said Chad Plantz, special agent in charge of HSI San Diego. “This significant sentence demonstrates the U.S. government’s resolve with holding all those who traffic in drugs accountable for their actions.” 

DEFENDANT                                                           Case Number 22-CR1375-BAS                               

Moises Moreno                       Age: 38                       Phoenix, AZ; Moreno Valley, CA

SUMMARY OF CHARGES                                                                                  

Importation of Fentanyl – Title 21, United States Code, Sections 851 and 952/960

Mandatory Minimum: Fifteen years in prison

Maximum penalties: Life in prison and $10 million fine

 

AGENCY

Homeland Security Investigations

U.S. Customs and Border Protection

NEWS RELEASE SUMMARY – March 14, 2023

SAN DIEGO – Eduard Ghiocel and Floarea Ghiocel, married Romanian nationals and suspected leaders of a Romania-based transnational organized crime group, are charged in federal court with laundering $1.4 million in proceeds from dozens of small thefts, robberies and swindles targeting mostly elderly victims in San Diego County.

Also charged are four of the Ghiocels’ family members or close associates, including Gabriel Ghiocel, Marius Ghiocel, Larisa Ghiocel and Argentina Alexandru. All defendants are alleged associates of the larger Valcea Romanian Transnational Crime Group.

Eduard and Floarea Ghiocel were transferred from state to federal custody and are scheduled to make their first appearance in federal court today. The other defendants remain at large in Romania.

Starting at 9 p.m. PST Monday night (6 a.m. Tuesday - Eastern European Time Zone), 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 seized Ghiocel assets across locations in Valcea County, Romania, including high-end luxury vehicles, gold coins, and cash, totaling $618,075.

According to a complaint and an international seizure warrant, the defendants conducted a series of 17 jewelry thefts in elderly communities in San Diego between March 2020 and September 2022. The complaint said the Ghiocels also filed false unemployment claims in order to steal about $32,250 in California unemployment insurance benefits intended to help workers impacted by the pandemic.

According to the complaint, the Ghiocels laundered the proceeds of their crimes by pawning expensive gold jewelry and watches for cash in jewelry stores in Los Angeles. The Ghiocels, who never had any legitimate employment, then systematically laundered that cash, along with the stolen unemployment insurance proceeds by sending wire transfers to Romania via Money Service Businesses, and by purchasing 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 repatriated $1,367,652.02 in assets from illicit funds to Romania, the complaint said.

“We have alleged that an organized crime group targeted and robbed members of San Diego’s senior community, many of whom lost items of great personal significance,” said U.S. Attorney Randy Grossman. “We will pursue justice for these crime victims wherever the evidence takes us, even as far as Romania.” Grossman thanked the prosecution team, investigating agencies and authorities in Romania for their excellent work on this case.

“The FBI would like to thank our local, state, federal, and Romanian partners for their incredible cooperation in this important matter,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “The FBI and our partners are committed to scouring the globe to find those who have victimized our citizens, to hold them accountable for their crimes and to seize what they have stolen. A special thanks to the Romanian authorities who were essential, as the trail of this investigation led within their borders: prosecutors from the Directorate for Investigating Organized Crime and Terrorism and police officers from the Romanian National Police’s Directorate for Combating Organized Crime. Their assistance is an excellent example of what international cooperation can bring to bear.”

“This international organized crime ring targeted some of the most vulnerable of our population. It's important that we send a message to criminals that the safety of everyone in our community matters,” said San Diego Police Chief David Nisleit. “I want to thank the investigators and prosecutors who continue to work toward justice on behalf of the victims.”

“According to allegations in the complaint, the defendants victimized some of our most vulnerable citizens and targeted relief programs during the height of the COVID-19 pandemic,” said Tyler Hatcher, Special Agent in Charge of IRS Criminal Investigation's Los Angeles Field Office.  “One of our main duties as financial investigators is to take the profit out of crime and hold criminals accountable for their actions, and that’s what this investigation is about. IRS-CI will continue to work closely with our 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 charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.

DEFENDANTS                                         Case Number: 23MJ0474-MSB

Eduard Ghiocel (1)                                         Age: 47                     Transient, Romanian

    aka Eduard Alexandru, aka “Filica”                        

Floarea Ghiocel (2)                                         Age: 48                     Transient, Romanian

   aka Floarea Alexandru                             

Gabriel Ghiocel (3)                                         Age: 25                     Transient, Romanian

Marius Ghiocel (4)                                         Age: 33                     Transient, Romanian

Larisa Ghiocel (5)                                           Age: 24                     Transient, Romanian

Argentina Alexandru (6)                                 Age: 31                     Transient, Romanian

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

NEWS RELEASE SUMMARY – March 8, 2023

SAN DIEGO – A narcotrafficker pleaded guilty today to international cocaine trafficking conspiracy.

According to court documents, beginning in the 1980s through 2017, Raul Flores-Hernandez, aka El Tio, 70, led a drug-trafficking organization based in Mexico’s Jalisco State that trafficked cocaine from South America to Mexico for subsequent importation into the United States. He leveraged his business connections to coordinate the transportation of substantial quantities of cocaine from Colombia, Peru, and Bolivia to ports in Mexico, from which they were transported by land to and across the U.S. border. 

In July 2017, Mexican authorities arrested Flores-Hernandez at the request of the United States. He was extradited from Mexico to the United States in February 2021.

Flores-Hernandez pleaded guilty to one count of conspiracy to distribute five kilograms or more of cocaine, knowing and intending that it would be imported into the United States. He is scheduled to be sentenced on June 14 and faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Organized Crime and Drug Enforcement Task Force (OCDETF) supported this case.

The DEA Los Angeles and San Diego Field Divisions, FBI Washington Field Office, and HSI San Diego Field Office are investigating the case. Customs and Border Protection in San Diego provided substantial assistance.

The Justice Department thanks Mexican authorities for their assistance in securing the arrest and extradition of Flores-Hernandez.  

Assistant U.S. Attorney Kyle Martin for the Southern District of California, Acting Deputy Chief Katharine Wagner and Trial Attorney Melanie Alsworth of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance. 

DEFENDANT                                               Case Number 17CR0051 (BAH)                                         

Raul Flores-Hernandez                                   Age: 70                                   Guadalajara, MX

SUMMARY OF CHARGES

International Conspiracy to Distribute Controlled Substances – 21 U.S.C. §§ 959(a), 960(a)(3), 960(b)(1), and 963

Maximum penalty: Life in Prison and $10 million fine

AGENCIES

Homeland Security Investigations

Drug Enforcement Administration

Federal Bureau of Investigation

Customs and Border Protection

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.

A narcotrafficker pleaded guilty today to international cocaine trafficking conspiracy.

According to court documents, beginning in the 1980s through 2017, Raul Flores-Hernandez, aka El Tio, 70, led a drug-trafficking organization based in Mexico’s Jalisco State that trafficked cocaine from South America to Mexico for subsequent importation into the United States. He leveraged his business connections to coordinate the transportation of substantial quantities of cocaine from Colombia, Peru, and Bolivia to ports in Mexico, from which they were transported by land to and across the U.S. border. 

In July 2017, Mexican authorities arrested Flores-Hernandez at the request of the United States. He was extradited from Mexico to the United States in February 2021.

Flores-Hernandez pleaded guilty to one count of conspiracy to distribute five kilograms or more of cocaine, knowing and intending that it would be imported into the United States. He is scheduled to be sentenced on June 14 and faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Randy Grossman for the Southern District of California, Administrator Anne Milgram of the DEA, and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.

The Organized Crime and Drug Enforcement Task Force (OCDETF) supported this case.

The DEA Los Angeles and San Diego Field Divisions, FBI Washington Field Office, and HSI San Diego Field Office are investigating the case. Customs and Border Protection in San Diego provided substantial assistance.

The Justice Department thanks Mexican authorities for their assistance in securing the arrest and extradition of Flores-Hernandez.  

Acting Deputy Chief Katharine Wagner and Trial Attorney Melanie Alsworth of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorney Kyle Martin for the Southern District of California are prosecuting the case. The Justice Department’s Office of International Affairs provided significant assistance. 

SAN DIEGO – Constantin Sandu of Romania, a suspected organized crime figure, was arrested and charged in a federal complaint today with masterminding a scheme to steal more than $5 million in California unemployment insurance benefits intended to help workers impacted by the pandemic.

According to the complaint, Sandu conspired with 214 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.

“According to the complaint, this defendant presided over a vast network of international swindlers to exploit a program meant to help struggling California workers survive the pandemic,” said U.S. Attorney Randy Grossman. “The pandemic may be waning, but we are still aggressively investigating allegations of COVID relief fraud. The scheme alleged in this case diverted millions of dollars from those who truly needed it.”

Grossman thanked the prosecution team and the investigating agencies for their excellent work on this case.

Sandu was arrested by FBI San Diego on March 1, 2023, at the Imperial Beach Border Patrol Station. He is scheduled to make his first appearance in federal court this afternoon before U.S. Magistrate Judge Allison H. Goddard at 2 p.m.

“FBI San Diego would like to thank our local, state, and federal law enforcement partners for addressing this problem in a unified effort,” said Special Agent in Charge Stacey Moy of the FBI San Diego Field Office. “These benefits were offered with the intention of helping struggling families stay afloat and were a critical lifeline for many. Sandu’s alleged greed diverted those funds for his own personal gain. The FBI and our partners will continue to identify those who commit pandemic-related fraud and hold them accountable for their crimes.” 

“The San Diego Police Department is committed to investigating and solving crimes committed by organized crime rings. The arrest of Constantin “Bobi” Sandu is the culmination of a yearlong investigation by Economic Crimes Unit detectives and multiple law enforcement partners. We will continue to collaborate with these partners to arrest the over 200 suspects involved in this investigation.”

“IRS Criminal Investigation and our law enforcement partners will continue to investigate individuals and organizations who target relief programs as a way to steal funds from critical programs,” said Special Agent in Charge Tyler Hatcher of the Los Angeles Field Office. “It is especially egregious when criminal organizations think they can profit off of the United States and steal funds that are intended to aid citizens during times of need.  IRS-CI is committed to aggressively investigating these crimes and bringing those criminal organizations to justice.”

The complaint said that beginning in fall of 2020 and continuing until late summer of 2022, Sandu and hundreds of unnamed co-conspirators 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 in the various W2’s 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 unnamed co-conspirators to fraudulently obtain no less than $5,207,687.00 in California Unemployment Insurance benefits.

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

DEFENDANT                                               Case Number: 23-mj-00697-AHG

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; U.S.C. § 981(a)(1)(C) Criminal Forfeitures; Title 28, U.S.C. § 2461(c) Civil Forfeitures

Maximum penalty: Thirty years in prison, $1 million fine

AGENCIES

Federal Bureau of Investigation

San Diego Police Department Economic Crimes Unit

Internal Revenue Service

California Employment Development Department Investigative Division

U.S. Department of Homeland Security

Department of Labor Office of Investigator General

SAN DIEGO – Terrance Deandre Ellison was sentenced in federal court today to 20 years in prison for drug-trafficking crimes, including importation of methamphetamine and conspiring with others to import methamphetamine from Mexico into the United States.

During a week-long jury trial in May 2022, prosecutors proved that Ellison was a drug trafficker who recruited, organized, and operated a network of drug importers in connection with his methamphetamine distribution activities in San Diego County and elsewhere between March 2020 and May 2020. The jury found that Ellison used drug-addicted people to travel to Mexico and smuggle methamphetamine across the border as “body carriers” in exchange for cash payment or drugs after delivery of the methamphetamine to Ellison in the United States.

At Ellison’s behest, the “body carriers” concealed methamphetamine either inside their bodies or strapped to the outside. At trial, prosecutors proved that, on several occasions, Ellison went to Mexico, met with “body carriers” at a hotel or other location, purchased methamphetamine from drug suppliers in Mexico, packaged the methamphetamine for concealment, and directed the individuals how to conceal and cross the drugs into the United States. Once the “body carriers” crossed the border without getting caught, they would meet Ellison and travel to other locations to remove the drugs from their bodies. The “body carriers” then provided the drugs to Ellison.  

After several of his “body carriers” were arrested, Ellison choseto import the drugs himself. In May 2020, Ellison concealed the drugs inside a natural void behind the glove compartment of his rental car and entered the United States at the Otay Mesa, California Port of Entry. However, he was caught at the border and officers found the methamphetamine packages concealed inside.

At trial, prosecutors presented incriminating evidence, including voluntary statements made by Ellison during an interview with investigators; text messages from his cellular phone; and border crossing records of Ellison with his “body carriers.” The jury deliberated and found Ellison guilty of four counts, including conspiracy to possess methamphetamine with the intent to distribute, possession of methamphetamine with the intent to distribute, conspiracy to import methamphetamine, and importation of methamphetamine.

At today’s sentencing hearing, U.S. District Judge William Q. Hayes found that Ellison had an aggravating role in the offenses because he was a leader and organizer, and the offenses were otherwise extensive. Judge Hayes also found that Ellison had obstructed justice when he testified at trial because Ellison gave false testimony on material matters with willful intent. In balancing the aggravating and mitigating factors, Judge Hayes concluded that a sentence of 20 years was sufficient but not greater than necessary.  Judge Hayes also placed Ellison on a 10-year term of supervised release, which will commence after Ellison has served his prison sentence. 

“This sentence sends a message to any drug trafficker operating drug importation and distribution networks in this district that you will receive a significant sentence for directing those who import dangerous narcotics,” said U.S. Attorney Randy S. Grossman. 

Grossman thanked the prosecution team and Homeland Security Investigations for their excellent work on this case.

“HSI will direct its full range of investigative authorities towards those who smuggle deadly drugs across the border and into our communities,” said Chad Plantz, special agent in charge of HSI San Diego. “This significant sentence demonstrates the U.S. government’s resolve with holding drug traffickers accountable for their actions.”

 

DEFENDANT                                               Case Number 20cr1788-WQH                                            

Terrance Deandre Ellison                               Age: 43                                   San Diego, CA

SUMMARY OF CHARGES

Conspiracy to Possess Methamphetamine with Intent to Distribute – Title 21, U.S.C., Sections 841(a)(1) and 846

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

Conspiracy to Import Methamphetamine - Title 21, U.S.C., Sections 952, 960, and 963

Importation of Methamphetamine - Title 21, U.S.C., Sections 952 and 960

Maximum penalty as to each charge: Life in prison and $10 million fine

AGENCY

Homeland Security Investigations        

SAN DIEGO – The U.S. Attorney’s Office unsealed a complaint today charging San Diego resident Edgar Lopez Feliciano with maintaining a steroid distribution center in Spring Valley. As detailed in the complaint, Feliciano’s network is allegedly involved in the creation and distribution of significant quantities of anabolic steroids throughout the United States.

In a coordinated takedown that took place today, federal, state, and local law enforcement agents and officers arrested Feliciano and executed search warrants at the steroid distribution center in Spring Valley and Feliciano’s personal residence in Poway. During the searches, agents seized a large amount of anabolic steroids - estimated to be hundreds of thousands of individual dosage-units. They also seized more than $25,000 in U.S. currency, six Rolex watches and other luxury jewelry, and multiple high-end luxury vehicles including a 2023 Mercedes Maybach S580 and a 2023 Mercedes AMG G63.

During the investigation, agents learned that Feliciano allegedly purchases his anabolic steroid powders from sources of supply located in China and Turkey and then uses the steroid powders to create and manufacture anabolic steroids for distribution throughout the United States through the U.S. Mail system. According to postal meter readings, law enforcement officials estimate that Feliciano distributed more than 10,000 parcels containing anabolic steroids between June 2022 and August 2022 and until his arrest continued to distribute anabolic steroids from the distribution center in Spring Valley on a daily basis.

According to the complaint, between 2018 and 2021, agents identified multiple financial accounts held by Feliciano with the total amount of deposits into these accounts being approximately $7 million, and more than $2.5 million in wire transfers sent from these accounts to overseas entities believed to be involved in the production and distribution of Schedule III Controlled Substances.

“The complaint alleges a national steroid distribution network operating in the San Diego community,” said U.S. Attorney Randy Grossman. “We will continue to work closely with our federal and local partners to prosecute those who traffic in controlled substances using our U.S. mail system.” 

Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“According to the complaint, the defendant was manufacturing and trafficking illicitly produced anabolic steroids,” said DEA Special Agent in Charge Shelly Howe. “DEA and our state and local partners will continue to actively pursue drug traffickers whether they are trafficking illicit drugs or controlled substances.”

“The best way to disrupt and dismantle any criminal organization is to follow the money and take ill-gotten gains,” said Tyler Hatcher Special Agent in Charge of IRS Criminal Investigation's Los Angeles Field Office, “IRS Criminal Investigation is proud to work with our partners in investigating this case.”

“This investigation shows our persistence and dedication in protecting the U.S. Mail from criminal misuse and disrupting the flow of these dangerous drugs being trafficked in our communities,” said Carroll Harris, Inspector in Charge of the Los Angeles Division. “The arrest of Feliciano demonstrates our collaborative efforts to continue to work closely with our partners to identify and prosecute those who are seeking a profit at the expense of the public safety.”

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.

DEFENDANT                                               Case Number 23MJ0630-BLM                              

Edgar Lopez Feliciano                                    Age: 54                                   San Diego, CA

SUMMARY OF CHARGES

Maintaining a Drug-Involved Premises – Title 21, U.S.C., Section 856(a)(1) and (2)
Maximum penalty: Twenty years in prison and $500,000 fine

AGENCY

Drug Enforcement Administration

Internal Revenue Service

United States Postal Inspection Service

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

SAN DIEGO – A Tijuana man appeared in federal court late yesterday to face federal drug trafficking offenses following the seizure of more than 2,200 pounds of methamphetamine and 53 pounds of fentanyl discovered in the Chevy van he was driving as he attempted to cross into the United States through the Otay Mesa Port of Entry Cargo Facility.

It is believed to be one of the largest methamphetamine seizures in San Diego County.

The complaint alleges that on February 22, 2023, at approximately 3:47 p.m., the 2005 Chevy Van applied for entry into the United States through the Otay Mesa Commercial Port of Entry. A Customs and Border Protection Officer referred the vehicle to a secondary inspection area based on a computer-generated referral. Officers found 63 packages in the rear cargo area of the van concealed within cardboard boxes. The packages contained substances that field-tested positive for methamphetamine and fentanyl. Law enforcement then arrested the driver, Andres Gonzales Soriano.

“This is huge quantity of dangerous drugs that is no longer destined for the streets of San Diego and beyond,” said U.S. Attorney Randy Grossman. “A seizure of this magnitude saves lives.” Grossman thanked the prosecution team as well as Customs and Border Protection and Homeland Security Investigations for their excellent work on this case.

“These drugs are a blight that destroy lives and fuel crime and violence in our communities,” said Chad Plantz, special agent in charge, HSI San Diego. “This massive seizure likely saved lives and delivers a significant financial blow to the drug cartels.

“CBP officers are the front-line of stopping these dangerous drugs from entering the U.S.” said Sidney K. Aki, CBP Director of Field Operations in San Diego. “Keeping our communities safe is among our top priorities, and this major interdiction will prevent its negative impacts and the proceeds from funding transnational criminal organizations.”

DEFENDANTS                                            Criminal Case No: 23-mj-0611-BLM                                 

Andres Gonzalez Soriano                               24                                Tijuana

SUMMARY OF CHARGES

Importation of Methamphetamine and Fentanyl, in violation of Title 21 U.S.C. §§ 952 and 960
Maximum Penalty: Twenty years in prison, $1 million fine

AGENCY

United States Customs and Border Protection

Homeland Security Investigations

Drug Enforcement Administration

Border Crime Suppression Team

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

SAN DIEGO – Leopoldo Lora-Aguilera, a former Wells Fargo personal banker, was sentenced in federal court today to 33 months in custody for money laundering conspiracy and bank fraud.

Aguilera was arrested by FBI agents for his participation in an international money laundering organization based in Tijuana, Mexico which operated primarily in San Diego. The criminal organization laundered funds in excess of $12.5 million dollars before being disrupted by the FBI.

According to the plea agreement and other public records, Aguilera abused his position of trust as a personal banker with Wells Fargo Bank by opening bank accounts with false identities and wire transferring millions of dollars to Mexico. Aguilera conducted these transactions in exchange for thousands of dollars in cash payments from the criminal organization. The FBl's investigation linked these funds to the sale of narcotics by a Mexican drug cartel, specifically the sale of multi-kilogram amounts of fentanyl in the Midwest.

Aguilera admitted to opening 26 bank accounts for the money laundering organization, including eleven that were created by Aguilera using fictitious identities. Specifically, Aguilera used his position as a personal banker with Wells Fargo Bank to knowingly enter false names, passport numbers, and dates of birth on the fictitious bank accounts. These 11 fictitious accounts alone were used by the criminal organization to wire transfer a total of $3.8 million to Mexico. A majority of those wire transfers were conducted by Aguilera himself. Aguilera's use of these fictitious accounts was identified by Wells Fargo and brought to the attention of the FBI. Agents arrested Aguilar and disrupted the scheme shortly after.  

In conjunction with Aguilera's arrest, the FBI identified and seized 17 bank accounts that belonged to the money laundering organization containing in excess of $230,000.   Further investigation by the FBI resulted in a second round of arrests of Aguilera’s co-conspirators in the Spring of 2022. To date, the FBI has arrested Melisa Valdivia Diaz, Alma Leticia Murillo Valdivia, and Jorge Alberto Ortiz Borrego for participating in the multi-million-dollar money laundering scheme.  All three defendants have pleaded guilty in a related case, admitting they participated in the conspiracy.  Sentencings are pending. 

“Money launderers are a lifeblood of the cartels,” said U.S. Attorney Randy Grossman. “Today’s sentencing underscores that money launderers are key players in the cartel structure and will be treated as such.”

Grossman thanked the prosecution team and the FBI San Diego Cross Border Violence Task Force for their excellent work on this case.

“This case highlights the FBI’s dedication to holding all individuals accountable who make space for the cartels to function in our communities,” said Special Agent in Charge Stacey Moy of the FBI San Diego Field Office. “Although Lara-Aguilera was convicted on the financial aspect of these crimes, his actions directly facilitated the trafficking of fentanyl and other dangerous narcotics throughout our country. The FBI is committed to investigating all who manipulate U.S. financial systems to enable money laundering and drug trafficking.”

This case is the result of efforts by the U.S. Attorney’s Office and the FBI San Diego Cross Border Violence Task Force, who were assisted by Wells Fargo Bank's internal investigators in Arizona and California. This case is being prosecuted by Assistant U.S. Attorney Blanca Quintero.

DEFENDANT                                               Case Number 19-CR-1955-BAS                                         

Leopoldo Lora-Aguilera                                 Age: 58                                   Chula Vista, CA

 

SUMMARY OF CHARGES

Money Laundering Conspiracy – Title 18, U.S.C., Sections 1956(h) and 1957
Maximum penalties: Twenty years in prison and $500,000 fine
 

Bank Fraud – Title 18 U.S.C., Section 1344
Maximum Penalties: Thirty years in prison and $1 million fine 

AGENCY

FBI San Diego Cross Border Violence Task Force

SAN DIEGO – U.S. Navy Captain (Retired) Jesus Vasquez Cantu was sentenced today to 30 months in prison by a federal district judge in San Diego on charges that he received lavish bribes from foreign defense contractor Leonard Francis, who plied him with luxurious hotel stays, travel, and prostitutes. Cantu was also ordered to pay a criminal fine of $75,000 and restitution to the U.S. Navy in the amount of $100,000.

“Mr. Cantu entered a den of corruption and in the process repudiated his oath and betrayed the sacred trust placed in him by the American people,” said U.S. Attorney Randy Grossman. “The Department of Justice and our agency partners will never relent in our pursuit of justice for schemes that dishonor our armed forces.”

Grossman thanked the prosecution team and agency partners for their excellent work on this case.

In his plea agreement, Cantu acknowledged that Francis took him and others out for drinks and dinners at posh restaurants, nightclubs and karaoke bars and paid for lavish hotel rooms and the services of prostitutes on numerous occasions in 2012 and 2013, during which time Cantu was the deputy commander, MSC Far East in Singapore, in charge of logistical sustainment to Navy ships operating in the Seventh Fleet. Cantu admitted that in return for these luxuries, he provided proprietary U.S. Navy information to Francis, and that he used his power and influence to help Francis and his company, Glenn Defense Marine Asia, known as GDMA, in its ship husbanding business.

Cantu also admitted in his plea agreement that, in 2007, when he was the Assistant Chief of Staff for Logistics for the Commander of the U.S. Navy’s Seventh Fleet aboard the USS Blue Ridge, he and others participated in a bribery conspiracy with Francis. Cantu and other members of the conspiracy accepted an ongoing stream of bribes from Francis, and in exchange, Cantu was influenced in the performance of his official Navy responsibilities and acted in violation of his official Navy duties.

“Mr. Cantu's sentencing holds him accountable for crimes he committed while serving as a senior Naval officer. His unconscionable criminal activity profoundly dishonored his oath, and unquestionably failed to meet the exacting standards required of all U.S. military personnel,” said Kelly P. Mayo, the Director of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS).  “DCIS and its investigative partners will continue their tireless efforts to bring to justice those who choose a similar illicit and dishonorable path regardless of tenure or position.”

“Mr. Cantu betrayed his oath to his country and abused his position with the Navy by accepting lavish gifts from GDMA, including hotel rooms, entertainment, alcohol, and the services of prostitutes, in exchange for divulging sensitive information that helped Leonard Francis defraud the United States,” said NCIS Director Omar Lopez. “NCIS and our law enforcement partners remain committed to fully investigating all allegations of conspiracy, bribery and corruption that threaten the integrity of the Department of the Navy.”

The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher, Valerie Chu, Michelle Wasserman, and David Chu of the U.S. Attorney’s Office for the Southern District of California.                     

 

 

DEFENDANT                                                                       Case Number: 17-CR-2376                         

Captain (Retired) Jesus Vasquez Cantu                                 Age 64             Silverdale, Washington

SUMMARY OF CHARGES

 

Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371
Maximum Penalty: Five years in prison, a $250,000 fine or twice the gross pecuniary gain or twice the gross pecuniary loss, whichever is greater

 

 

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Defense Contract Audit Agency

A Texas man was sentenced today to 18 months in prison for his role in funneling illegal foreign campaign contributions from a Russian national to a 2016 presidential campaign. 

According to court documents, Jessie R. Benton, 45, of The Woodlands, schemed with another political advisor to funnel political contributions to a 2016 presidential campaign from a Russian national seeking to meet and take a picture with the presidential candidate. Benton arranged for the Russian national – whose nationality Benton concealed from the campaign and the candidate – to attend a campaign fundraising event and to take a picture with the candidate.

As such attendance and engagement required a contribution, Benton caused the Russian national to wire $100,000 to Benton’s political consulting firm to make an illegal foreign contribution to the campaign. To disguise the scheme, Benton created a fake invoice, which falsely identified the funds as payment for consulting services. Benton acted as a straw donor and contributed $25,000 of the Russian national’s money to the campaign, falsely identified himself as the contributor, and pocketed the remaining $75,000. Because Benton falsely claimed to have given the contribution himself, the relevant campaign entities unwittingly filed reports with the Federal Election Commission (FEC) that inaccurately reported Benton – instead of the Russian national – as the source of the funds.

In November 2022, Benton was convicted at trial of conspiring to solicit and cause an illegal campaign contribution by a foreign national, effecting a conduit contribution, and causing false records to be filed with the FEC.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Randy Grossman for the Southern District of California, U.S. Attorney Matthew M. Graves for the District of Columbia, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Stacey Moy of the FBI San Diego Field Office made the announcement.

The FBI San Diego Field Office investigated the case.

Trial Attorneys Rebecca G. Ross and Michelle K. Parikh of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Michelle L. Wasserman for the Southern District of California, while serving in her capacity as a Special Assistant U.S. Attorney for the District of Columbia, prosecuted the case.

SAN DIEGO – Keenon Green was convicted by a federal jury on Wednesday of Attempted Sex Trafficking of Children and Attempted Enticement of a Minor.

The jury trial began on Monday, and the jury received the case on Wednesday. The jury deliberated for an hour and fifteen minutes before announcing they had reached a verdict, finding Green guilty of both charges.

According to the evidence presented at trial, which included social media evidence, cell phone evidence, body-worn camera surveillance, and witness testimony, Green relentlessly sent direct messages to a social media user he knew as “Lexi” on Instagram, attempting to recruit her into prostitution despite responses from Lexi stating that she was in high school, that she was delayed responding to his messages because she was doing her biology homework, and then explicitly telling Green that she was 16 years old. Green continued to try to recruit Lexi to provide commercial sex services, advising her that he could provide protection on “the blade,” a dangerous destination for commercial sex activity that Green referred to as a “hoe stroll,” and that she would have to “only work the blade for a week max.” After that, Green’s messages indicated that he would provide her with false identification, post her advertisements on commercial sex websites, and then she could “charge 350 a hour and only be in there 30 mins max.” Because he believed her to be only 16 years old, he also offered to teach her how to drive. In exchange for his protection as a pimp, Lexi would be expected to earn $500 a night as a prostitute, and $1000 a night if they were out of town.

Ultimately, after working to recruit online Lexi for almost a month, Green arranged to meet her in person and bring her to Orange County, where business was “hella good.” Green told Lexi to bring “provocative stuff” and “heels” for the trip. The evidence presented showed that Green planned to have Lexi engage in commercial sex dates until she earned $1,000 for him before returning her to San Diego on Monday to attend high school. Unfortunately for Green, “Lexi” was an undercover deputy with the San Diego Sheriff’s Department. When Green arrived at the meeting point with feminine care items in his trunk, including hair products and Vagisil, he was greeted by law enforcement instead.

Post-arrest, Green acknowledged that he was “chasing money” and that as a pimp, he “ran” seven to nine other women. The evidence presented at trial reflected that Green’s recruitment and enticement efforts extended beyond “Lexi”; he reached out to other Instagram users simultaneously, describing what he could offer as a pimp and telling them their “anatomy is the most valuable thing on this earth” and he could help them “use it wisely.”

“Trafficking children for commercial sex is a scourge on our community,” said U.S. Attorney Randy Grossman. “This case demonstrates that proactive law enforcement efforts can stop these crimes before they happen, as well as holding offenders accountable. The U.S. Attorney’s Office is committed to working with law enforcement partners to prevent trafficking and deliver justice for victims.” 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.

“Human trafficking is a highly predatory crime and can be violent. Offenders prey upon youth and the most vulnerable in our community. The Sheriff's Department will continue to work with our local, state, federal and tribal partners to rescue and protect victims of this terrible crime."

“This conviction closes the door on this human trafficker responsible for wreaking havoc on the lives of young women,” said Chad Plantz, special agent in charge, HSI San Diego. “Unfortunately, we know there are still traffickers out there looking to exploit the most vulnerable among us. Cases like this one serve to strengthen our resolve to protect and defend the victims.”

DEFENDANTS                                                          Case Number 22-cr-187-CAB

Keenon Green                                                           Age: 35

SUMMARY OF CHARGES

Attempted Sex Trafficking of Children – Title 18, U.S.C., Section 1591(a)
Minimum Penalty: 10 years
Maximum penalty: Life Imprisonment and $250,000 fine

Attempted Enticement of a Minor – Title 18, U.S.C., Section 2422(b)
Minimum Penalty: 10 years
Maximum Penalty: Life Imprisonment and $250,000 fine

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.

SAN DIEGO – Long Ngoc Tran (42) was sentenced in federal court yesterday to 72 months in prison for his role in the operation of dozens of illegal gambling dens that fostered drug trafficking, violent crime, and gang activity within a small San Diego neighborhood.

On April 9, 2021, Tran was indicted for Conspiracy to Operate an Illegal Gambling Business and Maintaining a Drug-Involved Premises; in violation of 18 U.S.C. § 371; Operating an Illegal Gambling Business; in violation of 18 U.S.C. § 1955; and Maintaining a Drug-Involved Premises; in violation of 21

U.S.C. § 856(a)(1). On April 14, 2021, Tran was arrested, made his initial appearance, and pled not guilty.

On July 28, 2022, pursuant to a plea agreement, Tran pled guilty to the first three counts of the Indictment, admitting to committing all three crimes.

During his sentencing, United States District Court Judge Marilyn Huff noted that Tran was affiliated with numerous gambling premises, and that drug trafficking was prevalent at these dens. Judge Huff also took into consideration Tran’s prior 2015 state court conviction for operating or maintaining a drug house. According to the indictment, Tran operated at least nine illegal gambling dens.

Based on publicly available filings, as far back as 2013, San Diego Police Department (SDPD) Street Gang Unit Detectives began to observe a steady increase in the prevalence of illegal gambling dens. Investigators learned that Asian gang members and associates were often involved in operating these illegal gambling dens and that methamphetamine was being used and sold at these illegal gambling dens. The illegal gambling dens were often located inside houses, apartments, and outbuildings in residential neighborhoods predominantly in City Heights, in the East San Diego area. It was common for gambling den owners to pay rent in cash to the owners of these properties and, in some cases, a percentage of the profits, as incentive to cast a blind eye to all the foot traffic.

In 2015, these locations began to draw more attention due to the frequency of violent crimes occurring in and around them, including robberies, shootings, stabbings, and assaults. Investigators learned that the patrons were often gang members, career criminals, habitual drug users, and fugitives.

In the fall of 2019, the San Diego Violent Crime Task Force - Gang Group (VCTF-GG) initiated an investigation dubbed “Marble Lion,” into the illegal gambling dens operating in the City Heights neighborhood of San Diego, often within homes and small businesses. At the time, more than 24 such dens were operating on any given day. These gambling dens attracted other criminal activity, including the use and distribution of illegal of narcotics, sales of weapons, and prostitution.

From July 2018 through July 2020, there were over four hundred crime cases and over three hundred arrests within 150 feet of the thirty-six illegal gambling locations investigated, causing this area to be the highest crime neighborhood in the East San Diego area. Law Enforcement investigated homicides, shootings, stabbings, felony assaults, robberies, arson, auto thefts, burglaries, identity theft, firearm possession, drug sales/possession, and other crimes in and around these locations.

The illegal gambling dens were equipped with electronic gambling machines which were programmed with several games of chance such as poker, blackjack, keno, jacks or better, and slot games. Most locations of these establishments were open 24 hours a day, seven days a week, with some shutting down in the early morning hours and starting up again in the afternoons. Investigators were also aware that most of these locations were outfitted with exterior and interior video surveillance cameras, which were often monitored remotely by the establishment owners and managers.

Investigators learned that these illegal gambling dens were also drug involved premises, commonly involving methamphetamine use and sales, as well as other drugs, which were sold by both employees and independent drug dealers. It was also common for employees to hand out small amounts of methamphetamine and “comp” customers who were playing. One owner described how he would give methamphetamine to patrons because it drew them to the location and kept them playing on gambling machines.

Between the fall of 2019 and the spring of 2021, VCTF-GG conducted more than 30 controlled drug and weapons purchases, performed extensive surveillance, and executed numerous search warrants. This culminated, in April 2021, with a large-scale midnight arrest and search operation involving more than 450 law enforcement officers from the FBI, HSI, BOP, DEA, ATF, IRS, San Diego Police Department, San Diego Sheriff’s Office, Chula Vista Police Department, National City Police Department, California Department of Corrections & Rehabilitation, and the San Diego District Attorney’s Office. This operation alone resulted in 37 arrests, the seizure of 287 gambling machines, pound quantities of methamphetamine, 2 firearms, and over $200,000. Subsequent operations have resulted in total arrests of more than 100 federal and local subjects, as well as total seizures of 13 pounds of methamphetamine, 47 firearms, over $590,000, over 400 gambling machines, and ounce quantities of cocaine, fentanyl, heroin, and MDMA.

On April 9, 2021, the Grand Jury returned 17 related indictments (21CR1109-H through 21CR1124-H) charging 47 defendants for offenses related to illegal gambling, firearm offenses, and drug distribution.

“This operation shows the real public safety benefits that can be achieved through strong local and federal law enforcement partnerships,” said U.S. Attorney Randy Grossman. “It is telling and rewarding that law- abiding residents noticed a positive impact on their communities and have expressed gratitude for law enforcement’s efforts.” Grossman praised the federal and county prosecutors as well as the team of FBI Special Agents, San Diego Police Department detectives/officers and other law enforcement agencies who worked so hard on this investigation.

"Today, the sentencing of Tran represents not only the end of the illegal gambling network he operated, but the termination of all violent crimes perpetrated due to the existence of these illegal gambling dens,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “Our focus is and always will be on protecting our communities from violence. We thank our partners that make up the Violent Crime Task Force – Gang Group for their coordination in ensuring that Tran returns to where he belongs—behind bars.”

“The top priority of the San Diego Police Department is violent crime. The success of this operation means safer neighborhoods for our City Heights community and our city as a whole,” said Police Chief David Nisleit. “I want to thank our officers and partner agencies for their hard work on this investigation.”

“By working together, we were able to bring peace back to a neighborhood that was being overrun with crime because of these illegal gambling dens, which are magnets for gang violence,” said San Diego County District Attorney Summer Stephan. “The District Attorney’s Office investigated and filed criminal charges against 30 defendants on the state side for a murder, robberies, shootings, illegal possession of firearms, and drug sales. I am grateful to the U.S. Attorney, FBI, San Diego Police Department and the Violent Crimes Task Force for their commitment to shutting down these illegal operations.”

DEFENDANTS

Case Number 21CR1109-H

Name

Age

Hometown

Sentence

LONG NGOC TRAN (1),aka “Long Tu,”

42

San Diego

72 months

TUNG THANH NGUYEN (2),aka “Ang,”

52

San Diego

30 months

THANH LAN THI NGUYEN (3),aka “Lan,”

43

San Diego

Case still pending

DENNIS MICHAEL DIBLASI (4),aka “Drago,”

49

San Diego

21 months

WAYNE JONATHAN CLAYTON Jr. (5),aka “G-Wayne,”

52

San Diego

18 months

YVONNE MICHELLE AGUILAR (6),aka “Michelle,”

43

San Diego

Case still pending

ROBERT JAMES WRIGHT (7),

40

San Diego

Case still pending

TAM ONH ONG (8), aka “Fireball,”

45

San Diego

Case still pending

SAENGAMPHAY M. PHOMMASANE (9) aka “Melinda,”

40

San Diego

Case still pending

KAREN RENE ANN PRANGSAMPHAN- PORTER (10), aka “KK,”

33

Arizona

15 months home confinement

 

SUMMARY OF CHARGES

Conspiracy (Title 18, U.S.C., Sec. 371 – Conspiracy) Illegal Gambling Business (Title 18, U.S.C., Sec. 1955)

Maintaining a Drug-Involved Premises (Title 21, U.S.C., Sec. 856(a)(1)) Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))

Maximum Penalties: For Conspiracy Charge: Five years’ imprisonment and a $250,000 fine.

Maximum Penalties: For Illegal Gambling Business Charge: Five years’ imprisonment and a $250,000 fine. Maximum Penalties: For Maintaining Drug Involved Premises Charges: Five years’ imprisonment and a $500,000 fine.

Maximum Penalties: For Distribution of Methamphetamine Charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.

Case Number 21CR1110-H

Name

Age

Hometown

Sentence

JIMMY HUI BANH (1),

45

San Diego

57 months

JOSE ANTONIO TORRESDAY (2),aka “Pepe,”

31

San Diego

Time served

TINA SENKET (3),

35

San Diego

387 days

JIMMY LU (4),aka “Nam Van Lu,” aka “Nam Thao,”

56

San Diego

Case still pending

ARCADIO MAMURI CRUZ (5),aka “Bangsta,” aka “Archie,”

38

San Diego

Case still pending

MARK ANONAS ARCELAO (6), aka “Lil Tipsy,”

30

Jacksonville, Florida

41 months

 

SUMMARY OF CHARGES

Conspiracy (Title 18, U.S.C., Sec. 371 – Conspiracy) Illegal Gambling Business (Title 18, U.S.C., Sec. 1955)

Maintaining a Drug-Involved Premises (Title 21, U.S.C., Sec. 856(a)(1)) Felon in Possession of a Firearm (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))

Maximum Penalties: For Conspiracy Charge: Five years’ imprisonment and a $250,000 fine. Maximum Penalties: For Illegal Gambling Business Charge: Five years’ imprisonment and a $250,000 fine.

Maximum Penalties: For Maintaining Drug Involved Premises Charges: Five years’ imprisonment and a $500,000 fine.

Maximum Penalties: For Felon in Possession of Firearm Charges: Ten years’ imprisonment and a $250,000 fine.

Case Number 21CR1111-H

Name

Age

Hometown

Sentence

*TRI MINH VO, (1),

39

San Diego

fugitive

TIEN HONG HONG LE (2),aka “Mr. Le,”

59

Phoenix, AZ

24 months

DONG VAN NGUYEN (3),

45

San Diego

36 months

DANG VAN NGUYEN (4),

55

San Diego

Case still pending

MICHELLE SALVADORE EDWARDS (5),

49

San Ysidro

41 months

KHANG DINH NGUYEN (6), aka “K-Y,”

47

San Diego

Time served

LEETRI DANG (7),

38

San Diego

Time served

KE VAN TRAN (8), aka “Kevin,”

59

San Diego

Case still pending

KIARA PORSHA EASLEY (9),

30

San Diego

Time served

TO VAN LAI (10), aka “Took,”

44

San Diego

60 months

CU VAN HUYN (11), aka “Cucu,”

41

San Diego

Time served

DAPHNE NICOLE RIVERA (12),

47

El Cajon

33 months

WILLIAM VANNA BOUNSAVATH (13) aka “Ray Ray,”

36

San Diego

46 months

ALMA SOCORRO SILVA (14),

50

San Diego

Case still pending

TONY NGUYEN (15) aka “Lucky,”

42

San Diego

63 months

 

SUMMARY OF CHARGES

Conspiracy (Title 18, U.S.C., Sec. 371 – Conspiracy) Illegal Gambling Business (Title 18, U.S.C., Sec. 1955)

Maintaining a Drug-Involved Premises (Title 21, U.S.C., Sec. 856(a)(1)) Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))

Possession with Intent to Distribute Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))

Maximum Penalties: For Conspiracy Charge: Five years’ imprisonment and a $250,000 fine.

Maximum Penalties: For Illegal Gambling Business Charge: Five years’ imprisonment and a $250,000 fine. Maximum Penalties: For Maintaining Drug Involved Premises

Charges: Five years imprisonment and a $500,000 fine.

Maximum Penalties: For Possession with Intent to Distribute and Distribution of Methamphetamine Charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.

Case Number 21CR1112-H

Name

Age

Hometown

Sentence

*LE THI LE (1), aka “Chi Le,”

72

San Diego

10 months

PHOUNG THANH BUI (2)

47

San Diego

40 months

 

SUMMARY OF CHARGES

Conspiracy (Title 18, U.S.C., Sec. 371 – Conspiracy) Illegal Gambling Business (Title 18, U.S.C., Sec. 1955)

Maintaining a Drug-Involved Premises (Title 21, U.S.C., Sec. 856(a)(1)) Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))

Maximum Penalties: For Conspiracy Charge: Five years’ imprisonment and a $250,000 fine. Maximum Penalties: For Illegal Gambling Business Charge: Five years’ imprisonment and a $250,000 fine.

Maximum Penalties: For Maintaining Drug Involved Premises Charges: Five years’ imprisonment and a $500,000 fine.

Maximum Penalties: For Distribution of Methamphetamine Charges: Forty years’ imprisonment with a mandatory minimum sentence of five years and a $5 million fine.

Case Number 21CR1113-H

Name

Age

Hometown

Sentence

ARTHUR MARCELINO CASTILLO

42

San Diego

51 months

 

SUMMARY OF CHARGES

Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))

Maximum Penalties: For Distribution of Methamphetamine Charge: life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.

Case Number 21CR1114-H

Name

Age

Hometown

Sentence

*ENRIQUE SAMUEL DUENAS, aka “Kiki,”

30

San Diego

fugitive

 

SUMMARY OF CHARGES
 

Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))

Felon in Possession of a Firearm (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))

Importation of Methamphetamine (Title 21, U.S.C., Secs. 952 & 960)

Maximum Penalties: For Distribution of Methamphetamine Charges: Forty years’ imprisonment with a mandatory minimum sentence of five years and a $5 million fine.

Maximum Penalties: For Felon in Possession of Firearm Charges: Ten years’ imprisonment and a $250,000 fine.

Maximum Penalties: Importation of Methamphetamine Charges: life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.

Case Number 21CR1115-H

Name

Age

Hometown

Sentence

JULIUS GREENOGE

41

San Diego

15 months

 

SUMMARY OF CHARGES

Felon in Possession of a Firearm (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))

Maximum Penalties: For Felon in Possession of Firearm Charge: 10 years’ imprisonment and a $250,000 fine.

Case Number 21CR1116-H

Name

Age

Hometown

Sentence

*MARTA LIDIA GUTIERREZ

29

San Diego

fugitive

 

SUMMARY OF CHARGES

Importation of Methamphetamine (Title 21, U.S.C., Secs. 952 & 960)

Maximum Penalties: Importation of Methamphetamine Charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.

Case Number 21CR1117-H

Name

Age

Hometown

Sentence

*KEOUDONE INTHAVONG

49

San Diego

41 months

 

SUMMARY OF CHARGES

Possession with Intent to Distribute/Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))

Maximum Penalties: For Possession with Intent to Distribute and Distribution of Methamphetamine Charges: Forty years’ imprisonment with a mandatory minimum sentence of five years and a $5 million fine.

Case Number 21CR1118-H

Name

Age

Hometown

Sentence

*PHONETHIP PETE INTHAVONG

52

San Diego

40 months

 

SUMMARY OF CHARGES

Possession with Intent to Distribute (Title 21, U.S.C., Sec. 841(a)(1))

Maximum Penalties: For Possession with Intent to Distribute Charge: Forty years’ imprisonment with a mandatory minimum sentence of five years and a $5 million fine.

Case Number 21CR1119-H

Name

Age

Hometown

Sentence

PHINATH PETER KHVANN, aka “Peanut,”

46

San Diego

18 months

 

SUMMARY OF CHARGES

Felon in Possession of a Firearm (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))

Maximum Penalties: For Felon in Possession of Firearm Charge: Ten years’ imprisonment and a $250,000 fine.

Case Number 21CR1120-H

Name

Age

Hometown

Sentence

THANH NGUYEN, aka “Poway,”

46

Poway

Case still pending

 

SUMMARY OF CHARGES

Felon in Possession of a Firearms and Ammunition (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))

Maximum Penalties: For Felon in Possession of Firearm and Ammunition Charges: years’ imprisonment and a $250,000 fine.

Case Number 21CR1121-H

Name

Age

Hometown

Sentence

DAVID LIBANAN OPHEIM, aka “Casper,”

48

San Diego

48 months

 

SUMMARY OF CHARGES

Possession with Intent to Distribute (Title 21, U.S.C., Sec. 841(a)(1))

Maximum Penalties: For Possession with Intent to Distribute Charge: 40 years’ imprisonment with a mandatory minimum sentence of 5 years and a $5 million fine.

Case Number 21CR1122-H

Name

Age

Hometown

Sentence

SEAN MICHAEL RIED (1)

36

San Diego

46 months

TUNG NGOC NGUYEN (2)

26

San Diego

60 months

 

SUMMARY OF CHARGES

Distribution of Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))

Maximum Penalties: For Distribution of Methamphetamine Charge: Forty years’ imprisonment with a mandatory minimum sentence of five years and a $5 million fine.

Case Number 21CR1123-H

Name

Age

Hometown

Sentence

*WILLIAM HENRY SCOVALL, aka “Cap,”

30

San Diego

24 months

 

SUMMARY OF CHARGES

Felon in Possession of a Firearm (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))

Maximum Penalties: For Felon in Possession of Firearm Charge: Ten years’ imprisonment and a $250,000 fine.

Case Number 21CR1124-H

Name

Age

Hometown

Sentence

CESAR ALONZO VALLADOLID, aka “Playboy,”

38

San Diego

Case still pending

 

SUMMARY OF CHARGES

Possession with Intent to Distribute Methamphetamine (Title 21, U.S.C., Sec. 841(a)(1))

Felon in Possession of a Firearm (18, U.S.C., Secs. 922(g)(1) and 924(a)(2))

Importation of Methamphetamine (Title 21, U.S.C., Secs. 952 & 960)

Maximum Penalties: For Possession with Intent to Distribute Methamphetamine Charges: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.

Maximum Penalties: For Felon in Possession of Firearm Charges: Ten years’ imprisonment and a  $250,000 fine.

Maximum Penalties: Importation of Methamphetamine Charges: Forty years’ imprisonment with a mandatory minimum sentence of five years and a $5 million fine.

AGENCIES

Members on the Violent Crimes Task Force

FBI

San Diego Police Department San Diego Sheriff’s Department Internal Revenue Service Homeland Security Investigations National City Police Department Chula Vista Police Department Federal Bureau of Prisons

California Department of Corrections and Rehabilitation San Diego County Probation

San Diego County District Attorney’s Office

Additional partner agencies participating in the takedown

Drug Enforcement Administration

Bureau of Alcohol, Tobacco, Firearms and Explosives

U.S. Marshals Service

California Bureau of Gambling Control San Diego City Attorney’s Office

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

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. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

SAN DIEGO – Salam Razuki, Sylvia Gonzales and Elizabeth Juarez were sentenced in federal court yesterday for conspiring to have a former business associate kidnapped.  Razuki and Gonzales were sentenced to 84 months in prison, and Juarez was sentenced to 46 months in prison.

All three defendants pleaded guilty in November of 2022, admitting that they conspired in a plan to have the intended victim kidnapped and taken to Mexico to be intimidated or murdered.  The victim had ongoing business disputes and civil litigation pending against Razuki and others, which could have resulted in significant monetary judgments.  The person they solicited and eventually paid to commit this crime contacted the Federal Bureau of Investigation immediately, at which point a federal investigation was initiated.  Through the cooperation of that individual, subsequent planning meetings were recorded, leading to the arrest of Razuki, Gonzales, and Juarez before the plan could be executed. 

In pronouncing the sentence, the Honorable Judge Cathy Ann Bencivengo noted the “extremely egregious” nature of the defendants’ plan to have the victim “brought to Mexico to disappear, whether that meant leaving him there, intimidating him there or, as the defendants have all pled to, anticipating him being killed there."

“Fortunately, due to a tip from a conscientious citizen, this cold, calculated and terrifying plan was thwarted,” said U.S. Attorney Randy Grossman. “The tables have been turned, and the justice system has held all perpetrators accountable.” Grossman thanked the prosecution team and FBI agents for their excellent work on this case.

“These three defendants callously conspired to kidnap and use violence in order to resolve a business dispute, reducing the value of a person's life to a dollar figure,” said Stacey Moy, Special Agent in Charge of the FBI San Diego Field Office. “The tireless work of FBI personnel alongside our law enforcement partners in the DEA, the San Diego Police Department, and the San Diego County Sheriff's Department has held these defendants accountable for this bad business. It is another example of our agencies’ collaborative commitment to public safety and our collective determination to bring criminals to justice.”

DEFENDANTS                                            Case Number 18-cr-05260-CAB

Salam Razuki                          Age: 53                       San Diego, CA

Sylvia Gonzales                      Age: 53                       San Diego, CA

Elizabeth Juarez                      Age: 42                       San Diego, CA

SUMMARY OF CHARGES

Conspiracy to Kidnap, a Felony in violation of 18 U.S.C § 1201(c)

Maximum Penalty: Life imprisonment

AGENCIES

Federal Bureau of Investigation

Drug Enforcement Administration

San Diego Police Department

San Diego Sheriff’s Office

This case is the result of ongoing efforts by 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 District’s 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.

SAN DIEGO – Jaimee Ashley Koryn was sentenced in federal court today to 130 months in prison for selling the fentanyl pills that resulted in the fatal overdose of 23-year-old Sherie Gil on September 30, 2021. Koryn pleaded guilty in October 2022, admitting that she sold Gil the fentanyl pills that caused her death.

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, California. 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 on a number of occasions 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 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 Koryn’s residence, law enforcement located and arrested Koryn.

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

“The loss of yet another young life serves as a reminder of the ongoing devastation inflicted by fentanyl counterfeit pills,” said U.S. Attorney Randy Grossman. “This office remains dedicated to pursuing individuals who seek to profit from the trade of fentanyl in all its deadly forms. Those who contribute to the tragic loss of life caused by overdose will held accountable to the full extent of federal prosecution.” Grossman thanked the federal prosecutors and Overdose Response Team agents who diligently pursued this case.

“Fentanyl continues to destroy lives in San Diego,” said Special Agent in Charge Shelly Howe. “The DEA and its partners will continue to vigorously pursue the people that deal this poison and bring them to justice.”

“Homeland Security Investigations (HSI) will continue to work with our law enforcement partners to prioritize our efforts and resources toward combatting this fentanyl crisis,” said Special Agent in Charge, Chad Plantz, HSI San Diego. “Today’s sentencing demonstrates that those who deliberately push deadly fentanyl into our communities will be held responsible.”

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                                           

Jaimee Ashley Koryn                                     Age: 34           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

For Further Information, Contact: Assistant U. S. Attorney Sabrina L. Fève (619) 546-6786

SAN DIEGO – Mexican-American businessman Julio Santamaria pleaded guilty in federal court today, admitting that he conspired to sell and use private computer-hacking tools in Mexico and the U.S. in order to monitor political and business rivals.

According to court documents, beginning in or about January 2016, Santamaria began working for a consortium of U.S. and Mexican companies, including a company called Elite By Carga, for which he brokered the sale of interception and surveillance tools to private citizens and Mexican politicians. Prior to working for this consortium, Santamaria worked for Mexico’s Procuraduría General de la República, or “PGR.”

Santamaria admitted to knowing that, in some cases, their Mexican government clients intended to use the interception equipment for political purposes, rather than for legitimate law enforcement purposes. In one case, they knowingly arranged for a Mexican mayor to gain unauthorized access to a political rival’s Twitter, Hotmail, and iCloud accounts. Guerrero and Moreno also admitted that the hacking tools and technologies they brokered would be used for commercial and personal purposes by private clients.

“Today’s guilty plea helps stem the proliferation of digital tools used for repression and advances the digital security of both U.S. and Mexican citizens,” said U.S. Attorney Randy Grossman. “This office is committed to disrupting malicious cyber activities and mitigating unlawful surveillance.” Grossman thanked the prosecution team and federal agents for their hard work on the case.

“Today’s guilty plea demonstrates cyberspace is not a refuge from American justice, and as seen in this case, those who violate privacy rights will be held accountable,” said Special Agent in Charge, Chad Plantz, HSI San Diego. “HSI and our law enforcement partners remain committed to protecting the American public from individuals attempting to illegally intercept private communications for illicit gain.”

This case was investigated by the Department of Homeland Security’s Homeland Security Investigations, with assistance provided by the Department of Justice’s Computer Crime and Intellectual Property Section.
 

DEFENDANTS                                                                Case Number 23cr0185JLS
Julio Santamaria                             Age: 49                         Los Angeles, California

SUMMARY OF CHARGES
Conspiracy – Title 18, U.S.C., Section 371 (to violate 18 U.S.C. §§ 2511(1)(a) and 2512(1)(b))
Maximum penalty: Five years in prison and $250,000 fine

AGENCY
Homeland Security Investigations

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

For Further Information, Contact: Assistant U. S. Attorney Sabrina L. Fève (619) 546-6786    

SAN DIEGO – U.S. Navy Capt. Theodore E. Essenfeld was arraigned in federal court today on an indictment charging him with cyberstalking a civilian woman.

According to the indictment, over an 18-month period, Essenfeld registered fake Facebook, LinkedIn, email, and cellular phone accounts using the woman’s name, biographical information, and photographs without her knowledge or consent. Essenfeld posted erotic and sexually-explicit content to the Facebook account, including photos and videos of the woman that she had previously privately shared with him, as well as graphic media files, or “memes.”

Essenfeld also used the imposter Facebook account to engage with Facebook-related dating services, which falsely made it appear that the woman was seeking dates, the indictment said. The imposter LinkedIn account that Essenfeld created in the woman’s name falsely advertised her as professional pole dancer.

“The indictment alleges a disturbing campaign of betrayed trust, harassment, and intimidation,” said U.S. Attorney Randy Grossman. “This Office is committed to protecting victims of cyberstalking and holding perpetrators accountable for malicious internet activity.” Grossman thanked the prosecution team and Naval Criminal Investigative Service agents for their excellent work on this case.

“The alleged behavior outlined in this indictment is reprehensible,” said Special Agent in Charge Joshua Flowers of the NCIS Southwest Field Office. “NCIS and our law enforcement partners remain committed to fully investigating and rooting out criminality within the ranks that threatens Department of the Navy readiness.”

This case was investigated by the Naval Criminal Investigative Service with assistance provided by the Department of Justice’s Computer Crime and Intellectual Property Section.

If you or someone you know has experienced cyberstalking by an active duty service member, please contact the following anonymous tip lines: www.ncis.navy.mil (Navy and Marines),  https://www.cid.army.mil/report-a-crime.html (Army), and https://www.osi.af.mil/Submit-a-Tip/ (Air Force), or call the Department of Defense Hotline at (800) 424-9098. Victims of cyberstalking by non-active duty members should contact local law enforcement or the FBI or HSI field office.

 

DEFENDANT                                               Case Number 23cr0177-RSH                                              

Theodore E. Essenfeld                                    Age: 51                                   Chula Vista, CA

SUMMARY OF CHARGES

Cyberstalking – Title 18, U.S.C., Section 2261A(2)(B)

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

AGENCY

Naval Criminal Investigative Service

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

For Further Information, Contact: Assistant U. S. Attorneys Paul Benjamin (619) 546-7579 and Larry Casper (619) 546-6734

SAN DIEGO – Human smuggler Kevin Antonio Quevedo-Moncada, whose attempt to escape Border Patrol agents resulted in a Christmas-Day crash that killed one unauthized immigrant and seriously injured two others, was sentenced in federal court today to more than four years in prison.

When imposing the sentence, U.S. District Judge Cathy Ann Bencivengo said: “Human trafficking is a very serious offense. This case underscores the situation at its worst.” Judge Bencivengo also noted that, despite multiple opportunities to stop before the fatal crash, the defendant’s failure to do so coupled with the “nature and circumstances make this much more aggravated.”

Quevedo-Moncado, 23, pleaded guilty in October 2022, admitting that on December 25, 2021, he picked up three undocumented migrants hiding around Otay Mountain Wilderness, a remote area in San Diego County about 12 miles east of the city of Otay Mesa and just north of the Mexican border. When Border Patrol agents attempted to stop his car, Quevedo-Moncada sped into a nearby campground where he drove erratically, nearly hitting several Border Patrol cars. He escaped the campground by ramming a Border Patrol car positioned at the exit.

Quevedo-Moncado then continued to flee down a winding, dark rural road that was slick from the rain and  lost control of the car, launching it off the road and into a tree, killing one of his passengers. The two other passengers, who both survived, were hospitalized in critical condition. One of them suffered, among other injuries, a broken jaw, a collapsed lung, eight rib fractures, and injuries to his spleen and kidneys, and had to be placed into a medically-induced coma before he was stabilized. CHP accident reconstructions showed that Quevedo-Moncado’s car was travelling at speeds of up to 93 miles per hour around a curve with a speed limit of 35 when he crashed. Please see photos below of the crashed vehicle, which were included with the government’s sentencing materials.

Quevedo-Moncada, who was not seriously hurt in the crash, pushed himself out through the windshield of his car and continued his effort to flee from Border Patrol agents. When they caught him, he continued to struggle to avoid being handcuffed. After his arrest, Quevedo-Moncada admitted he was being paid $2,000 to smuggle his passengers to Anaheim. Quevedo-Moncada also admitted that, following the crash, he heard one of his passengers moaning in pain and believed that the passenger was bleeding, but did not stop to help him. Quevedo-Moncado claimed that he did not assist because he did not know the man and because Quevedo-Moncado was also in pain.

“This was an aggravated crime motivated by profit and committed with no regard for human life,” said U.S. Attorney Randy Grossman. “The passengers were treated as disposable cargo with predictably tragic results. We will continue to hold unscrupulous human smugglers responsible for the consequences of their greedy and deadly actions.”

Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“We are grateful for the hard work and tenacity that our Border Patrol agents and partners in the U.S. Attorney’s Office demonstrated in bringing this criminal to justice,” said San Diego Sector Chief Patrol Agent Aaron Heitke. “To prevent further tragedy, it is imperative that we continue holding smugglers and their transportation cells accountable for reckless and life-threatening behavior.”

The U.S. Attorney’s Office for the Southern District of California helps lead Joint Task Force Alpha (JTFA), which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico and the Northern Triangle countries of Guatemala, El Salvador, and Honduras.  The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. JTFA consists of federal prosecutors and attorneys from U.S. Attorney’s Offices along the Southwest Border, from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from DHS’s Homeland Security Investigations, Customs and Border Protection, and Border Patrol.  The FBI and the Drug Enforcement Administration are also part of the Task Force. 

DEFENDANTS                                Case Number 22-CR-0038-CAB                            

Kevin Antonio Quevedo-Moncada    Age: 23                       Lake Forest, California

SUMMARY OF CHARGES

Transportation of Certain Aliens Resulting in Death – Title 8 U.S.C. Section 1324(a)(1)(A)(ii), (v)(II), and (a)(1)(B)(iv)

Maximum Penalties – Life in prison or death; $250,000 fine

Transportation of Certain Aliens Resulting in Serious Bodily Injury – Title 8 U.S.C. Section 1324(a)(1)(A)(ii), (v)(II), and (a)(1)(B)(iii)

Maximum Penalties – Twenty years in prison; $250,000 fine

INVESTIGATING AGENCIES

United States Border Patrol

Federal Bureau of Investigation

For Further Information, Contact: Assistant U.S. Attorney Alicia Williams (619) 546-8917 or  Assistant U.S. Attorney Joseph Orabona (619) 546-7951

SAN DIEGO, CA – A local man who engaged in sex trafficking of women in California, Nevada, Massachusetts and Virginia from November 2019 through January 2021 pleaded guilty in federal court today to sex trafficking charges.

In November 2022, a federal grand jury returned an indictment charging Davon Dunn, aka “Lil Kant,” with sex trafficking women by fraud, force and coercion and transporting women in interstate commerce for the purpose of engaging in commercial sex acts. Dunn was arrested in December 2022 and ordered detained without bail by the Court.

Today, Dunn entered his guilty plea before U.S. Magistrate Judge Mitchell D. Dembin.  According to the plea agreement, Dunn admitted to knowingly recruiting, enticing, harboring, transporting, providing, obtaining, and maintaining an adult female (“AF1”), knowing and in reckless disregard of the fact that means of force, threats of force, fraud, coercion, and any combination of such means would be used to cause AF1 to engage in commercial sex acts. Dunn admitted that these sex acts occurred in the Southern District of California and elsewhere.    

More specifically, between April 2020 and January 2021, within the Southern District of California, and elsewhere, Dunn admitted he used a combination of force, fraud, and coercion to cause AF1 to engage in commercial sex acts. In particular, Dunn harbored AF1 in an apartment in Riverside County, where he provided transportation for AF1 to travel to and from “dates” (which is the meeting between the customer and commercial sex worker for the activity of prostitution), including “dates” in San Diego County, where AF1 engaged in commercial sex acts.  Dunn maintained AF1 by providing her with food and supplies needed to engage in commercial sex acts.  Dunn also admitted that AF1 shared the proceeds of her commercial sex acts with him.  Dunn used his cellular phone to post, repost, and “bump” (which means to push to the top of the webpage) commercial sex advertisements featuring AF1. 

As provided in the plea agreement, Dunn admitted on or about October 1, 2020, while AF1 was working as a commercial sex worker, Dunn struck AF1 in her face, ribs, and back to cause her to resume engaging in commercial sex acts after AF1 indicated she no longer wished to engage in commercial sex acts. Dunn’s use of force against AF1 resulted in injuries to her face and caused her to experience multiple fainting episodes. Dunn also admitted to posting commercial advertisements, and booking hotel and airline travel all related to his commercial sex trafficking of AF1.

In addition to trafficking AF1, Dunn admitted in his plea agreement to causing the transportation of two other adult women (AF2 and AF3) from San Diego to Massachusetts, Virginia, and Nevada for the purpose of engaging in commercial sex acts and prostitution between November 2019 and June 2020. Dunn also admitted to using force against AF3 in connection with the commercial sex acts. In particular, Dunn slapped AF3 and used force to make her continue engaging in commercial sex acts. 

“These are crimes that haunt victims for a very long time,” said U.S. Attorney Randy Grossman. “We will seek justice for them in hopes that it will ease their suffering.” Grossman commended the prosecution team as well as FBI agents and members of the San Diego Human Trafficking Task Force for their continuing effort to investigate and prosecute this important case.

A sentencing hearing is scheduled for April 21, 2023, at 9 a.m. before the U.S. District Robert S. Huie.  Dunn has been in custody since his arrest in December 2022. 

DEFENDANT                                   Case Number: 22CR2727-RSH

Davon Dunn                                       Age: 30                                   San Diego, CA

SUMMARY OF CHARGES

Sex trafficking by Fraud, Force, and Coercion – Title 18, U.S.C., Section 1591(a)(1)

Maximum penalty: Life in Prison and $250,000 fine

INVESTIGATING AGENCIES

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
• The United States Attorney’s Office, Southern District of California

For Further Information, Contact: Assistant U.S. Attorney Mark W. Pletcher (619) 546-9714 and Valerie H. Chu (619) 546-6750

SAN DIEGO – U.S. Navy Captain (Retired) David Williams Haas was sentenced today to 30 months in prison by a federal district judge in San Diego on charges that he received more than $90,000 in bribes from foreign defense contractor Leonard Francis, who plied him with luxurious hotel stays, travel, and prostitutes.  Haas was also ordered to pay a criminal fine of $30,000 and restitution in the amount of $90,968.82.

“Public corruption erodes the very fabric of our democracy, threatening the reputation and functioning of our institutions and thus the ability of the United States to lead with credibility,” said U.S. Attorney Randy S. Grossman. “Today’s sentencing, in part, replenishes the well of democracy, signaling to all Americans that the business of your public institutions will be conducted in the light, without bias or favor.”

According to court documents, Haas reciprocated by using his influence within the Navy’s Seventh Fleet to steer ships to GDMA-controlled ports and otherwise advance the interests of Francis and GDMA.

According to the court documents, Haas received the following bribes, among others, from Francis:

• On May 11-15, 2012, Francis paid for rooms at the Shangri-La in Jakarta, Indonesia, plus dinner, entertainment at a night club, alcohol and prostitutes for Haas and others.

• On June 29-30, 2012, in Tokyo, Japan, Francis paid for a two-day party for Haas and others including transportation, dinner at Nobu Restaurant and entertainment at several hostess clubs where the services of prostitutes were provided, at a cost of more than $75,000.

“Mr. Haas’ sentencing brings accountability and closure to the willful illegal acts of a former U.S. Navy officer, who abused his position, to illegally enrich himself and others, at the expense of the American taxpayer, as well as the safety and security of our naval forces in the Pacific area of operations,” said Kelly P. Mayo, the Director of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS). “This outcome, and others associated with it, demonstrate the steadfast commitment of DCIS and our law enforcement partners to expose corruption within the Department.”

“Mr. Haas betrayed his oath to his country by soliciting, receiving, and accepting a stream of lavish gifts from GDMA, including over $90,000 in meals, entertainment, hotel expenses, and the services of prostitutes, in return for doing and omitting to do acts in violation of his official Navy duties,” said NCIS Director Omar Lopez. “NCIS and our law enforcement partners remain committed to fully investigating all allegations of bribery and corruption that threaten the integrity of the Department of the Navy.”

The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher, Valerie Chu, Michelle Wasserman, and David Chu of the U.S. Attorney’s Office for the Southern District of California.                     

DEFENDANT                                                                       Case Number: 18CR3656                           

Captain (Retired) David Williams Haas                                 Age 54             Kailua, Hawaii

SUMMARY OF CHARGES

 

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

Maximum Penalty: Five years in prison, a $250,000 fine or twice the gross pecuniary gain or twice the gross pecuniary loss, whichever is greater

 

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Defense Contract Audit Agency

For Further Information, Contact: Assistant U. S. Attorney Shital H. Thakkar (619) 546-8785 and Andrew Sherwood (619) 546-9690    

SAN DIEGO – Chad Lee Engel was sentenced in federal court today to 138 months in prison for blowing up ATM machines to steal the money contained inside. 

Engel pleaded guilty in July 2022, admitting that he participated in conduct outlined in the original indictment, including his part in causing the explosion that damaged a California Coast Credit Union ATM, located at 4285 Ruffin Road in San Diego, on July 4, 2017; and an ATM located at a Chevron gas station, located at 9650 Miramar Road in San Diego on August 13, 2017.

In the first incident, Engel admitted that he and a coconspirator made and detonated a pipe bomb on a metal shelf underneath the ATM, which caused significant damage to the ATM’s structure, but did not expose the money contained inside.  After a joint investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the San Diego Fire-Rescue Department’s Metro Arson Strike Team and the FBI, bomb technicians identified the post-blast debris as a destructive device. 

Engel admitted that in the second incident, in the early morning hours of August 13, 2017, he and an accomplice approached an outdoor ATM located at a Chevron gas station. They worked together to drill a hole in its housing, and dispersed an unknown gas (such as acetylene or propane) into the ATM.  Engel then placed and ignited a hobby fuse inside the drilled hole, which resulted in an explosion that destroyed the ATM. After the explosion, Engel retrieved a cash box from the post-blast debris that contained approximately $7,000, and both he and the coconspirator fled.  Later that day, bomb technicians identified the use of the gas to blow up the ATM as a destructive device.

After Engel and his coconspirator were charged in 2017, additional investigation by the U.S. Attorney’s Office and ATF investigators revealed that Engel and the accomplice attempted to locate and break into other ATM machines before their activities on July 4 and August 13 of 2017 were discovered.  Through his plea of guilty, Engel admitted that on June 18, 2017, they broke into a Super Laundry in National City where they hoped to burglarize an ATM machine located inside. Although they were unsuccessful in breaking into that ATM machine, they stole approximately $140 from within the Super Laundry. 

One week later, on June 25, 2017, Engel and his coconspirator broke into another ATM machine located at a 76 Gas Station located at 12860 Rancho Peñasquitos Boulevard in San Diego.  They loaded the ATM into their vehicle, took the ATM to an area near Fiesta Island, and used a grinder and cutting torch to break into the ATM, which allowed them to steal the money located inside. Eventually, a subsequent indictment incorporated these actions into Engel’s charges, and he admitted to them in his plea agreement. 

“This is a just sentence for a defendant whose dangerous actions caused significant damage,” said U.S. Attorney Randy Grossman. “If you use explosives to break the law, you are going to prison for a long time.” Grossman thanked the prosecution team, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Metro Arson Strike Team, the Federal Bureau of Investigation and the National City Police Department for their excellent work on this case.

“ATF is dedicated to preventing and reducing violent crime involving the criminal misuse of explosives, and protecting the public by enforcing laws and regulations governing the explosives industries,” said ATF Los Angeles Field Division Acting Special Agent in Charge Jennifer Cicolani. “ATF remains vigilant about working with its partners to keep the public safe by investigating and perfecting charges against those who misuse explosives for greed and public destruction.”

DEFENDANT                                               Case Number 17-cr-03401-JLS                              

Chad Lee Engel                                              Age: 50                                   Chula Vista, CA

SUMMARY OF CHARGES

Use of an Explosive to Commit a Felony in violation of 18 U.S.C § 844(h)

Maximum Penalty: Mandatory minimum 10 years in prison, consecutive to any other sentence;

Conspiracy to Commit Bank Burglary in violation of 18 U.S.C §§ 2113(b) and 371

Maximum Penalty: Ten years in prison

AGENCY

Bureau of Alcohol, Tobacco, Firearms and Explosives

San Diego Fire Department

San Diego Police Department

Federal Bureau of Investigation

National City Police Department

"This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

This case is also 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.

For Further Information, Contact: Assistant U.S. Attorney Kevin Mokhtari (619) 546-8402

SAN DIEGO – Willian Estuardo Lemus-Lara, aka “Humilde,” a high-level cartel boss from Guatemala, was sentenced in federal court today to 210 months in federal prison.

According to public documents, Lemus-Lara was identified as the leader of a transcontinental criminal organization that moved multi-ton quantities of cocaine from South America via maritime smuggling routes to Guatemala and ultimately to conspirators in northwest Guatemala and Mexico, who in turn imported that cocaine into the United States.

Lemus-Lara, 51, was the head of the organization, and despite the best efforts of the United States to stymie his cocaine operation, he was a prolific trafficker. As the government described in its sentencing papers, a five-day snapshot of his operation gave unparalleled insight into Lemus-Lara’s cocaine trafficking prowess.  During a five-day span in May 2017, Lemus-Lara coordinated and oversaw a smuggling venture involving four cocaine-laden vessels. Through this investigation, three of those vessels were interdicted by the U.S. Coast Guard and the Guatemala FEN, which is Guatemala’s Naval Special Forces.  The vessels had between 810-914 kilograms of cocaine each.  A fourth boat made it through and delivered 814 kilograms of cocaine to Lemus-Lara and his organization.

Lemus-Lara was targeted as part of a long-term joint investigation led by Homeland Security Investigations and the Drug Enforcement Administration.  The investigation has led to the indictment and extradition of several high-level South and Central American drug traffickers, including several, like Lemus-Lara, from Guatemala.

“This office is committed to aggressively pursuing leaders of drug trafficking organizations who use international waters as a corridor to smuggle cocaine to the United States,” said U.S. Attorney Randy Grossman.  “Today’s sentence marks the culmination of years of efforts by agents and prosecutors to keep those who flood the United States with drugs accountable for their actions.”

Grossman thanked the prosecution team and the law enforcement agencies for their excellent work on this case.

“This sentencing of Lemus is the culmination of years of collaborative efforts between HSI, DEA, the U.S. Attorney’s Office and government of Guatemala,” said Chad Plantz, Special Agent in Charge of Homeland Security Investigations (HSI) San Diego. “The joint effort has significantly impacted this international criminal organization’s ability to import dangerous drugs into the United States.”

“International drug trafficking organizations are driving addiction and overdose deaths in the United States,” said DEA Special Agent in Charge Shelly S. Howe. “Today’s sentencing of Lemus-Lara is a win for DEA and our law enforcement partners.  We are committed to stopping these organizations from bringing large quantities of drugs into our country and holding their leaders accountable.”

This case is 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 18CR0390-DMS

 Willian Lemus-Lara                                                  Age: 51                       Guatemala      

                                               

SUMMARY OF CHARGES

Count 1- Conspiracy to Possess with Intent to Distribute Cocaine on Board a Vessel –

Title 46, U.S.C., Section 70503, 70506(b)

Maximum Penalty: Life in prison and $10 million fine

Count 2 - International Conspiracy to Distribute Controlled Substances  –
Title 21, U.S.C., Sections 959, 960, 963

Maximum Penalty: Life in prison and $10 million fine

AGENCIES

Homeland Security Investigations (HSI)

Drug Enforcement Administration (DEA)

Customs and Border Protection (CBP)

U.S. Coast Guard

HSI Attaché Guatemala City, Guatemala

HSI Attaché Mexico City Mexico

Department of Justice, Office of International Affairs

Department of Justice, Office of Enforcement Operations

Department of Justice, Organized Crime and Drug Enforcement Task Force (OCDETF)

Joint Task Force-Investigations (JTF-I)

Joint Interagency Task Force-South (JIATF-S)

For Further Information, Contact: Assistant U. S. Attorney Adam Gordon (619) 546-6720

SAN DIEGO - Kaylar Junior Tawan Beltranlap, a 21-year-old San Diego resident, was sentenced in federal court today to 156 months in prison for distributing counterfeit oxycodone pills laced with fentanyl that resulted in the death of 15-year-old Coronado High School sophomore Clark Jackson Salveron on May 12, 2021.

Beltranlap pleaded guilty in July, admitting that he used his Instagram account to coordinate a drug transaction with Salveron. According to admissions in his plea agreement, Beltranlap warned Salveron to only take half the pill because it was “strong as hell.”

According to the government’s sentencing memo, on the morning of May 13, 2021, law enforcement officials and paramedics responded to a 911 call from a home in Coronado. Salveron was found deceased in his bedroom. The Medical Examiner’s Office later determined that the teen had died as the result of “acute fentanyl intoxication.”

During a search of Salveron’s room at that time, law enforcement observed a small desk in the corner next to his closet. On the desk was a laptop still open and running. Detectives were able to see the teen’s personal Instagram account which included a conversation with the user account “chefkaylar.” A subsequent database search showed that the username “chefkaylar” was registered to Beltranlap with an address in San Diego. The messages between the two showed that the night before the victim’s death, Salveron and Beltranlap discussed the purchase of “percs.” The next day, law enforcement located and arrested Beltranlap.

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

During today’s hearing, U.S. District Judge Cathy Ann Bencivengo noted that by dealing drugs, the defendant went for the “easy money” with “callous disregard for the poison he was putting into the community and into a very young victim.”

“A 15-year-old child tragically lost his life to fentanyl, leaving behind a devastated family and community.", said U.S. Attorney Randy Grossman. “Parents – the defendant in this case advertised these counterfeit blues on Instagram and Snapchat. I implore you to actively take steps to ensure that your children are not buying drugs online. We invite you to review the Fentanyl Toolkit which describes the various codes used by drug dealers in their online advertisements: https://www.sdpdatf.org/community-parent-fentanyl-toolkit.” Grossman thanked the prosecution team and the DEA Overdose Response Team for their excellent work on this case.

“Drug dealers are using social media to target kids,” said DEA Special Agent in Charge Shelly Howe. “Parents, be vigilant about checking your children’s social media, it may save their life. For additional information visit https://www.dea.gov/onepill for resources on fake pills and fentanyl.”

“One child’s death from fentanyl is far too many,” said Chad Plantz, special agent in charge, HSI San Diego. “HSI and our San Diego law enforcement partners will continue our efforts to identify and hold accountable those who sell poisonous drugs in our community.”

“A family lost a child and that is more than any family should have to experience,” said Coronado Police Chief Chuck Kaye. “We are grateful for all the work that went into today’s sentencing.”

In the government’s sentencing memorandum, the Salveron was described by his family as a fun-loving kid with braces, a leader and role model to his younger sister and twin brothers, and a volunteer who always lovingly assisted his disabled grandparents. He was a “kind, sweet, helpful young man who cared deeply about his family.”

In the memo, the boy’s parents described the devastating impact of their son’s death.

“I will never recover from my oldest son being poisoned and taken from me,” his mother said. “Clark had a full life to live and now it’s gone. I will never see my son, graduate high school, go to college, get married, and have grandchildren.”

In explaining how Clark’s death has affected him, the victim’s father wrote: “Everything I did was with (my son). I don’t really go out anymore. We hiked, biked, he was my partner through nature. I don’t feel very deserving…I miss him so much. I cry every day. I think of him all day. I still can’t believe it.”

This case is the result of ongoing efforts by the U.S. Attorney’s Office, Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the San Diego Police Department, the California Department of Health Care Services and the San Diego County District Attorney’s Office to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The DEA created the DEA Overdose Response Team (formerly Team 10) which investigates overdose deaths in San Diego County. Investigators from the Overdose Response Team, as well as the Coronado Police Department and NTF Team 3, contributed to the investigation into Salveron’s death.

 

DEFENDANT                                               Case Number 21-CR-3442 CAB                                        

Kaylar Junior Tawan Beltranlap                     Age: 21                       San Diego, CA

SUMMARY OF CHARGES

Distribute of Fentanyl– Title 21, United States Code, Sections 841(a)

Maximum penalty: Twenty years in prison

AGENCY

Drug Enforcement Administration

Homeland Security Investigations

Federal Bureau of Investigation

Coronado Police Department

San Diego Police Department

California Department of Health Care Services

For Further Information, Contact: Assistant U. S. Attorneys Mark W. Pletcher (619) 546-9714 and Eric R. Olah (619) 546-7540    

 

SAN DIEGO – Micheline Pollock, a citizen of Canada and resident of the United Kingdom, was sentenced in federal court today to time served, which amounts to approximately a 30-month term of imprisonment, for her role in a conspiracy to defraud the United States Army Corps of Engineers (USACE) and the U.S. Navy Facilities Engineering Command (NAVFAC) in connection with military and humanitarian construction projects across Africa.  Chief U.S. District Judge Dana M. Sabraw also ordered Pollock to pay more than $7 million in restitution.

As charged in a 98-count indictment, Pollock was the chief executive officer of Dover Vantage, a U.S. construction firm that had its primary office in Dubai and specialized in expeditionary projects in Africa.  Between 2011 and 2018, Dover Vantage won construction contracts for USACE and NAVFAC projects in Africa, including a maternity ward and a school for the deaf in Togo, and a military aircraft hangar in Niger. 

Pollock was arrested on September 22, 2020, in Tbilisi, Georgia by Georgian authorities based on a provisional arrest warrant issued at the request of the United States. Pollock was in custody for approximately nine-months before she was extradited to the United States on June 18, 2021. For their efforts in this case, the U.S. Attorney’s Office for the Southern District of California specially acknowledges the assistance provided by our international partners in Georgia, including the Office of the Prosecutor General of Georgia, Georgia Border Police, Isani Police Department, and the Isani Prosecutor’s Office. 

Upon her extradition to the United States, Pollock entered a guilty plea to conspiring with others at Dover Vantage to defraud the United States. Pollock admitted in her plea agreement that she and her co-conspirators fraudulently represented that they had quality control plans and inspections, that they met these supposed quality control standards, and subsequently they falsely represented that work was done according to design specifications. As a result of the fraudulent conduct, many of the structures built by Dover Vantage were so poorly constructed that they collapsed, including an aircraft hangar in Niger and a training facility in Senegal.

"We will continue to combat fraud and corruption as the United States expends military and humanitarian resources across Africa,” said U.S. Attorney Randy Grossman. Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“The special agents of the DoD Office of Inspector General's Defense Criminal Investigative Service (DCIS) will traverse the globe to bring individuals who threaten our nation's military readiness to justice,” said Stanley A. Newell, Special Agent-in-Charge of DCIS’s Transnational Operations Field Office.  “DCIS and our partner agencies will continue to leverage a vast international law enforcement network to protect the integrity of the DoD procurement system.”

“Today's sentencing should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are relentless in their pursuit and capture of those who choose to defraud the United States Government anywhere in the world,” said Special Agent in Charge L. Scott Moreland of the Department of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office.

This case arises out of the U.S. Attorney’s Office Africa Strike Force initiative, developed to combat fraud and corruption as the United States expends military and humanitarian resources across Africa. For information about the second case prosecuted as a result of the initiative, please see  https://www.justice.gov/usao-sdca/pr/us-navy-concrete-contractor-djibouti-admits-fraudulent-conduct-and-will-pay-more-125.

The case is being investigated by the Defense Criminal Investigative Service, European Post of Duty in Germany, and the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit, European Fraud Resident Agency.  Additional investigative assistance was provided domestically and internationally by the Naval Criminal Investigative Service.  Substantial ongoing assistance in prosecuting this case has been provided by the Department of Justice’s Office of International Affairs.

DEFENDANT                                               Case Number 20-CR-3167-DMS                            

Micheline Pollock                                           Age: 52                       Dubai, United Arab Emirates

SUMMARY OF CHARGE

Conspiracy to Defraud the United States – Title 18, U.S.C., Section 371

 

AGENCIES

Department of Defense, Defense Criminal Investigative Service

Department of the Army, Criminal Investigative Command

Department of the Navy, Naval Investigative Service

For Further Information, Contact: Assistant U. S. Attorney Mario J. Peia (619) 546-9706

 

SAN DIEGO – A street gang member who led and organized an armed robbery was sentenced in federal court today to 96 months in prison after pleading guilty in April to one count of Conspiracy to Interfere with Commerce by Robbery.

According to his plea agreement, Trenelle Cannon, a member of the O’Farrell Park Criminal Street Gang, admitted that he and other individuals agreed to rob the Alpha and Omega Jewelry Store in National City at gunpoint. Other individuals entered the store, pointed a gun at the store clerk, smashed the jewelry cases open, and placed jewelry into bags before fleeing the store with the stolen property.

While Cannon never entered the store, he admitted to having a leading and organizing role in the conspiracy. His leadership included instructing other individuals on what materials to obtain for the armed robbery and instructing them on what to do during the robbery. Cannon also provided the gun used and actively worked to sell the sell the stolen merchandise afterwards.

“We will continue to aggressively investigate and prosecute not only those who commit the violent crimes, but those who organize, aid, and support the crimes,” said U.S. Attorney Randy Grossman. Grossman thanked the prosecution team and FBI for their excellent work on this case.

“Mr. Cannon didn’t just commit this crime, he organized and planned it for his accomplices to help carry out,” said Stacey Moy, Special Agent in Charge of the FBI San Diego Field Office. “The FBI remains committed to keeping our communities safe by finding, investigating, and dismantling criminal organizations one person at a time. Today’s sentencing represents the unwavering teamwork between the FBI and our law enforcement partners to see that dangerous criminals are no longer a danger to the public.”

DEFENDANT                                               Case Number 21cr2938-WQH                                            

Trenelle Cannon                                             Age: 23                                   San Diego, CA

SUMMARY OF CHARGES

Conspiracy to Interfere with Commerce by Robbery – Title 18, U.S.C., Section 1951

Maximum Penalty: Twenty years in Prison

AGENCY

Federal Bureau of Investigation

National City Police 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.

For Further Information, Contact: Assistant U. S. Attorneys Adam Gordon (619) 546-6720 and Daniel D. Shin (619) 546-7609

SAN DIEGO—Alexander Michael Randise of Ocean Beach was sentenced today in federal court to 188 months in prison for distribution of fentanyl that resulted in the fatal overdose of 30-year-old Tyber Joseph Lustig.

According to his plea agreement, Randise admitted providing four counterfeit M-30 pills laced with fentanyl, commonly referred to as “blues,” to Lustig on December 11, 2021. These pills caused Lustig to have a fatal overdose. Randise had been selling counterfeit M-30 pills laced with fentanyl to Lustig and others for at least one year prior to Lustig’s death. Randise instructed Lustig in a drug transaction approximately one year prior to Lustig’s death that Lustig needed to “be careful” because the pills were “[really] strong.”

On January 5, 2022, law enforcement officials conducted a search of two of Randise’s residences in Ocean Beach. During the search, authorities seized approximately 680 counterfeit M-30 pills laced with fentanyl, 2.33 grams of cocaine, suspected MDMA, $1,175 in U.S. currency, and a loaded 9-millimeter non-serialized handgun.

U.S. Attorney Randy Grossman said: “Fentanyl has taken so many lives. Our community lost another bright and extremely talented young man to this epidemic. We stand together with our law enforcement partners in stating directly: If you choose to sell drugs and a death results, you will be held accountable for that death.”

Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“Another young person is gone too soon and another family is shattered because of fentanyl,” said DEA Special Agent in Charge Shelly Howe. “Fentanyl dealers are a top priority for the DEA and our law enforcement partners and we will continue to attack this crisis at every level.”

“HSI will continue to work tirelessly alongside its San Diego law enforcement partners to bring justice to those who distribute fentanyl in our community,” said Chad Plantz, special agent in charge for HSI San Diego.

Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation into Lustig’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.

DEFENDANT                                               Case Number 22-CR-497-JLS                                            

Alexander Michael Randise                           Age: 29                       San Diego, CA

SUMMARY OF CHARGES

Distribution of Fentanyl – Title 21, United States Code, Sections 841(a) and (b)(1)(C)

Maximum Penalty: Twenty years in prison

AGENCY

Drug Enforcement Administration

Federal Bureau of Investigation

Homeland Security Investigations

San Diego County District Attorney’s Office

San Diego Police Department

State of California Department of Health Care Services

For Further Information, Contact: Assistant U. S. Attorneys Carl Brooker, Lisa Sanniti, and Mark W. Pletcher

SAN DIEGO — A federal judge has ordered Glenn Arcaro - one of the leaders of a massive cryptocurrency investment scheme that defrauded investors worldwide - to pay $17,646,801 dollars in restitution to approximately 800 victims from over 40 countries.

Arcaro, 45, the top U.S.-based promoter for BitConnect, pleaded guilty in September of 2021, admitting that he conspired with others to exploit investor interest in cryptocurrency by fraudulently marketing BitConnect’s proprietary coin offering and digital currency exchange as a lucrative investment.

Arcaro and others misled investors about BitConnect’s “Lending Program.” Under this program, Arcaro touted BitConnect’s purported proprietary technology, known as the “BitConnect Trading Bot” and “Volatility Software,” as being able to generate substantial profits and guaranteed returns by using investors’ money to trade on the volatility of cryptocurrency exchange markets.

In truth, however, BitConnect operated a textbook Ponzi scheme by paying earlier BitConnect investors with money from later investors. Arcaro and others ensured up to 15 percent of the money invested into BitConnect went directly into a slush fund to be used for the benefit of its owner and promoters. Arcaro was sentenced in September of 2022 to 38 months in prison.

On February 25, 2022, the founder of BitConnect, Satish Kumbhani, was indicted for his central role in the multibillion-dollar fraud. He remains a fugitive from justice and anyone with information on his whereabouts should contact the FBI at 216-522-1400.

"Hundreds suffered devastating financial losses as a result of this terrible deception, and we hope today’s ruling will provide some relief to the victims," said U.S. Attorney Randy Grossman.

Grossman thanked the prosecution team as well as the FBI’s Cleveland Cyber Crime and White Collar Crime teams, IRS-Criminal Investigation, and the Financial Investigations and Border Crimes Task Force - a multiagency task force based in San Diego and Imperial counties that is funded by the Treasury Executive Office of Asset Forfeiture, for their excellent work on this case.

“To perpetrate a massive fraud scheme that intentionally deceived hundreds of people around the globe is horrendous,” said Cleveland FBI Special Agent in Charge Gregory Nelsen. “Today’s hearing serves as a blunt warning to others who plot to trick investors that we will uncover the truth and seek restitution. The FBI is committed to protecting investors from sophisticated cryptocurrency scammers that seek to capitalize on the novelty of digital currency. We applaud the collaborative work with our federal, state, and local partners to bring justice to the victims.”

“Glenn Arcaro and his co-conspirators took advantage of innocent investors worldwide utilizing cyberspace to reach victims from over 40 countries.  Investors believed they were investing in cryptocurrency, but BitConnect’s proprietary coin and digital coin exchange were indeed fraudulent,” said Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation’s Los Angeles Field Office. “Today’s order of restitution will return over $17 million to those that were misled and invested in BitConnect. IRS Criminal Investigation, our law enforcement partners and the USAO in the Southern District of California worked hard to assist both foreign and domestic victims of this Ponzi scheme.” 

Assistant U.S. Attorneys Carl Brooker, Lisa Sanniti, and Mark W. Pletcher of the Southern District of California and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section prosecuted the case. The Department of Justice Office of International Affairs and United States Postal Inspection Service provided indispensable assistance to the investigation.

DEFENDANT                                               Case Number 21CR2542-TWR                              

Glenn Arcaro                                                  Los Angeles, CA                    Age: 45

SUMMARY OF CHARGES

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

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

Maximum penalty: Twenty years in prison, $250,000 fine or twice the gross gain or loss from the offense, whichever is greater; forfeiture and restitution

AGENCIES

FBI

IRS Criminal Investigation—Financial Investigations and Border Crimes Task Force

United States Postal Inspection Service

A federal district court in San Diego ordered today that over $17 million in restitution be distributed to approximately 800 victims from over 40 different countries due to their investment losses in BitConnect, a massive cryptocurrency investment scheme, which defrauded thousands of investors worldwide. 

On Sept. 16, 2021, Glenn Arcaro, 44, the top U.S.-based promoter for BitConnect, pleaded guilty to conspiracy to commit wire fraud. Separately, on Feb. 25, 2022, the founder of BitConnect, Satish Kumbhani, was indicted for his central role in the multibillion-dollar fraud. 

As part of Arcaro’s plea, he admitted to conspiring with others to exploit investor interest in cryptocurrency by fraudulently marketing BitConnect’s initial coin offering and digital currency exchange as a lucrative investment. Arcaro and co-conspirators misled investors about BitConnect’s “Lending Program.” Under this program, Arcaro touted BitConnect’s purported proprietary technology, known as the “BitConnect Trading Bot” and “Volatility Software,” as being able to generate substantial profits and guaranteed returns by using investors’ money to trade on the volatility of cryptocurrency exchange markets.   

In truth, however, BitConnect operated a textbook Ponzi scheme by paying earlier BitConnect investors with money from later investors. Arcaro and his co-conspirators ensured that up to 15% of the money invested into BitConnect went directly into a slush fund to be used for the benefit of its owner and promoters.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Randy Grossman for the Southern District of California, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.

The FBI Cleveland Field Office and IRS-CI Los Angeles Field Office investigated the case. The Justice Department’s Office of International Affairs and U.S. Postal Inspection Service provided indispensable assistance to the investigation.

Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Carl Brooker, Lisa Sanniti, and Mark W. Pletcher and Contract Attorney Mark McDonald for the Southern District of California are prosecuting the case.

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

Potential Victims Urged to Contact Justice Department

 

For Further Information, Contact: Assistant U. S. Attorneys Sabrina L. Fève and Nicholas W. Pilchak

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

Robert Fichidzhyan, age 40, admitted in his plea agreement that he built “skimmers”—customized electronic devices that his accomplices secretly installed at dozens of gas stations to steal credit and debit card information from unknowing patrons.  Fichidzhyan admitted that the conspiracy he participated in stole at least $619,923.45 during the period that he was involved. 

“Identity thieves should not assume they are safe committing electronic larceny,” said U.S. Attorney Randy S. Grossman.  “Anyone who victimizes the public in our jurisdiction will be brought to justice.”  Grossman thanked the prosecution team, IRS-CI and Secret Service agents for their excellent work on this case.

As set out in court documents, Fichidzhyan’s accomplices broke into gas pumps throughout Southern California and installed customized skimming devices to steal victims’ credit and debit card information during otherwise legitimate transactions. Next, they made unauthorized cards encoded with victims’ information for their own use, stole victims’ funds, or otherwise sold victim financial information outright to others who would exploit it for their own gain.

Fichidzhyan admitted in his plea agreement that he personally received $249,890.00 from the scheme. He was ordered to forfeit that amount, and to participate in paying restitution of $619,923.45 to the victims of his crime together with his codefendants.

Another defendant in a related case previously received prison time for similar conduct.  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.  The next hearing in the case against the remaining defendants is set for March 20, 2023, before U.S. District Judge Cynthia Bashant.

This investigation involved significant contributions from many different sources, including state, local, and federal law enforcement partners, and 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. 

“The U.S. Secret Service works vigorously to combat financial fraud perpetrated against the Southern California community, particularly crimes related to skimming,” said SAIC Jason Reynolds of the San Diego Field Office. “The Secret Service, along with our local, state, and federal partners, will continue to be proactive in suppressing this criminal activity, and remains ready to investigate financial crimes wherever they occur.”

DEFENDANTS                                                                    Case Number 21-CR-2660-BAS

1. Haykaz Mansuryan                      33                                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

Internal Revenue Service, Criminal Investigation

For Further Information, Contact: Assistant U. S. Attorney Katie Grammenidis (619) 203-9715

SAN DIEGO— Terese L. White, a flight attendant residing in Dallas, Texas, has pleaded guilty in federal court to a drug-trafficking charge, admitting that she used her privileges as a flight attendant to bypass the more robust security screening process at San Diego International Airport in order to smuggle fentanyl which was taped to her abdomen.

White admitted in her plea agreement that on October 4, 2022, while off-duty, she flew from the Dallas/Fort Worth International Airport in Texas to San Diego International Airport. Following her arrival, White exited the airport’s secure area. Later that same day, in advance of her scheduled flight to Boston, Massachusetts, White attempted to bypass the regular security screening procedures by using the Known Crew Member queue. White, however, was selected for the regular passenger screening process. During that screening process, Transportation Security Administration (TSA) officers found that White had concealed packages taped to her abdomen that contained more than three pounds of fentanyl. As part of her plea, White admitted that she attempted to use her status as a flight attendant, a position of trust, to facilitate the offense.

White is scheduled to be sentenced on March 24, 2023, before U.S. District Judge Cathy Ann Bencivengo.

U.S. Attorney Randy Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

"Drug traffickers use air, land and sea for personal gain, putting people’s lives in danger,” said DEA Special Agent in Charge Shelly Howe. “We will continue the great work with our partners to bring traffickers to justice and keep our community safe."

 

DEFENDANTS                                            Case Number 21-CR-2510-CAB                                        

Terese Lea White                                Age: 41                                   Dallas, Texas

SUMMARY OF CHARGES

Possession with the intent to distribute fentanyl – Title 21, United States Code, Section 841(a)(1)

Maximum penalty: Twenty years in prison

 

AGENCY

Drug Enforcement Administration

Transportation Security Administration

California Highway Patrol

Harbor Police Department

For Further Information, Contact: Assistant U. S. Attorneys Owen Roth and David Chu

SAN DIEGO – Dr. David J. Smith, a pain management physician, and his office manager, Julia Ann Oertle, are charged in a federal grand-jury indictment with perpetuating a long-running scheme to commit healthcare fraud and to manufacture and distribute adulterated fentanyl.

Smith made his initial appearance today before U.S. Magistrate Judge Bernard G. Skomal. Smith’s bond was set at $1 million, secured by real property, with a limitation on his ability to practice medicine. Oertle was still at large.

According to allegations in the indictment, Smith purports to specialize in the installation and maintenance of intrathecal pain pumps which are surgically placed in a patient’s stomach with two catheters implanted on the spine; pain medicine is then infused into a reservoir in the pump periodically, and meted out directly into the spine.

Beginning in December 2017, Smith and Oertle began compounding fentanyl citrate into vials, in a room at Smith’s principal medical practice, San Diego Comprehensive Pain Management Center. According to the indictment, this compounding practice was grossly improper and resulted in the production of adulterated fentanyl. Smith nevertheless directed administration of this fentanyl to patients repeatedly.

The indictment alleges that beyond providing patients with adulterated fentanyl, Smith violated the applicable standards of care by, among other things, prescribing materially excessive quantities of fentanyl, prescribing unnecessary oral opioid medications in conjunction with pain-pump medication, and installing pain pumps in patients without proper assessments for patient need. Smith then had false and fraudulent reimbursement claims submitted to Medicare for these administrations. Among other things, the claims were inflated by nearly 60 percent; they sought reimbursement for large volumes of unnecessarily manufactured fentanyl; they falsely represented that excess fentanyl had been discarded, when in fact it was used; and they did not disclose that the fentanyl was adulterated.

According to the indictment, Oertle illegally ordered fentanyl citrate for compounding; compounded fentanyl with Smith; and helped direct the illegal billing practices.

“We are supposed to be able to trust our doctors with our lives,” said U.S. Attorney Randy Grossman. “This office will use all its resources to protect vulnerable patients from doctors who use them to make money, with no regard for their safety.” Grossman thanked the prosecution team, the FBI, the DEA, the FDA, and the other members of the investigative team for their excellent work on the case.

“Criminal misconduct within the healthcare system is not only deceitful, but also destructive,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office.

“David Smith and Julia Oertle allegedly abused their positions of trust by manufacturing and propagating this toxic poison to patients over an extended period of time, further unraveling the fentanyl crisis our country is experiencing. This investigation clearly demonstrates that the threat of the opioid crisis extends far beyond street level dealing. The FBI will continue to work with our law enforcement partners to protect our communities and ensure justice is served.”

"The DEA is committed to bringing to justice doctors that take the public’s trust and abuse it for their own purposes,” said DEA Special Agent in Charge Shelly S. Howe.  “We are grateful for our relationships with the U.S. Attorney’s Office, the FBI and the other agencies who worked to bring these defendants to justice.”

“U.S. consumers must be able to trust that their medicines meet FDA’s required standards of safety and effectiveness,” said Acting Special Agent in Charge Christopher M. Alston, FDA Office of Criminal Investigations Los Angeles Field Office. “Our office will continue to pursue and bring to justice those who jeopardize the public’s health and the public’s trust.”

“According to allegations in the indictment, these defendants were trusted with the medical care of their patients but instead used treatments that were not medically necessary in order to gain financially,” stated Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation’s Los Angeles Field Office.  “We will continue to serve the public and help put a stop to schemes like this that take advantage of our medical system and put patients’ care at risk.”

In California, patients receiving treatment at this practice who feel they want to change providers may contact their primary care provider for continued care. Individuals seeking access to primary care or pain management service can find a provider through a local Federal Qualified Health Center. Patients with insurance should contact their health insurance company. Those who are struggling with their intake of opioids can find local providers at Choose Change CA or 1-800-879-2772. Those needing emergency access to substance-use treatment or who are experiencing opioid withdrawal can visit a California Bridges Emergency Room.

In Nevada, patients receiving treatment at this practice who feel they want to change providers may contact their primary care provider for continued care. Individuals needing access to primary care or pain management service can find a new provider through a local Federal Qualified Health Center. Patients with insurance should contact their health insurance company. Those who are struggling with opioid addiction may contact the Nevada Substance Abuse Help Line: 1-775-825-4357 or toll free 1-800-450-9530.  Individuals can also contact the Nevada 24-hour help line at 1-800-273-8255 or Text CARE to 839863.

DEFENDANTS                                            Case Number 22-CR-                                  

David James Smith                                         Age: 62                                   Rancho Santa Fe, California

Julia Ann Oertle                                              Age: 52                                   Las Vegas, Nevada

SUMMARY OF CHARGES

Conspiracy –18 U.S.C. § 371

Conspiracy to Manufacture and Distribute Controlled Substances –21 U.S.C. §§ 841(a), 841(b)(1)(C), 846

Healthcare Fraud – 18 U.S.C. § 1349

False Claims – 18 U.S.C. § 287

Manufacture of Controlled Substances – 21 U.S.C. § 841(a)

Adulteration of Fentanyl – 21 U.S.C. §§ 331, 333

 

Maximum penalty: Life in prison and a mandatory minimum term of 10 years in prison; a $10,000,000 fine; supervised release for a maximum of life, and a mandatory minimum term of 5 years; $100 special assessment per count of conviction.

AGENCIES

Federal Bureau of Investigation

Drug Enforcement Administration

Food and Drug Administration

U.S. Department of Health and Human Services

U.S. Marshal Service

Internal Revenue Service

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

Assistant U. S. Attorney Carl Brooker

NEWS RELEASE SUMMARY—December 5, 2022

SAN DIEGO - Jose Luis Gonzalez was sentenced in federal court today to 30 months in prison and ordered to forfeit $5,052,037 for transmitting more than $5 million dollars through an unregistered money transmission business and claiming more than $19 million dollars in fraudulent tax deductions in connection with the scheme.

According to court documents, Gonzalez, 50, conspired with others to operate an unregistered money transmission business in the Southern District of California. Gonzalez and his co-conspirators accepted and deposited cash throughout the United States, wire transferred the cash deposits throughout the United States, and ultimately transferred the funds to Mexico.

For example, Gonzalez and co-conspirators opened approximately 11 bank accounts for “shell” corporations in the Southern District of California. From just October 1, 2018 to May 2, 2019, no less than $5,052,037 in U.S. currency, checks, and money orders were deposited into the “shell” accounts at bank branches and ATMs throughout the United States.

About 95 percent of the funds were transferred to Mexico-based bank accounts. The co-conspirators charged a money transmission fee or commission. The purpose of this scheme was to evade domestic and foreign laws regarding money transfer and reporting.

According to his plea agreement, Gonzalez prepared 12 false corporation income tax returns for 10 of the “shell” corporations. In total, Gonzalez created $19,615,192 in bogus deductions that nearly ‘zeroed’ out the corporations’ gross receipts. One egregious example was a fraudulent 2017 corporate income tax return that Gonzalez prepared for Jeva International, Inc. Per the income tax return Gonzalez prepared and filed with the IRS, Jeva reported gross receipts of $3,092,253 and listed a false deduction of $3,053,359 for legal and professional outside services.

In addition, in the spring of 2019, an Internal Revenue Service Criminal Investigation undercover operation was conducted at Gonzalez’s office. Gonzalez was recorded explaining to the undercover officer how he was taking discrete steps to fraudulently reduce the undercover officer’s taxable income.

“No matter the sophisticated means a criminal organization uses to evade laws governing the international transfer of money, federal law enforcement will follow the money back to the criminal mastermind,” U.S. Attorney Randy Grossman said.

“We will not hesitate to prosecute that organization’s criminal enablers, including professional tax preparers who unlawfully assist these schemes.” Grossman thanked the prosecution team and agents from IRS Criminal Investigation, the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG), and the San Diego Police Department for their excellent work on this case.

“Tax preparers like Gonzalez, who use their knowledge and profession to aid in the execution of money laundering schemes, will be held accountable,” stated Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation’s Los Angeles Field Office. “Today’s sentencing shows our commitment to unraveling complex financial transactions and holding professionals responsible for their role in these schemes.”

This case is the result of ongoing efforts by the Financial Investigations and Border Crimes Task Force, a partnership targeting unlawful transactions through the financial system. The task force brings together the combined expertise of federal, state, and local law enforcement.

DEFENDANTS                                            Case Number 22-cr-01472-W                                            

Jose Luis Gonzalez                                     50                    Chula Vista, California

SUMMARY OF CHARGES

Operation of an Unlicensed Money Transmitting Business—Title 18, U.S.C., Section 1960

Aiding and Assisting in the Preparation of False Income Tax Returns – Title 16, U.S.C., Section 7206(2)

Criminal Forfeiture—Title 18, U.S.C., Section 982(a)

Maximum Penalty: Five years in prison, $250,000 fine

INVESTIGATING AGENCIES

Internal Revenue Service

Federal Deposit Insurance Corporation, Office of Inspector General

San Diego Police Department

For Further Information, Contact: Assistant U. S. Attorney Mark Conover (619) 546-6763 

Honolulu, Hawaii – Edmond Abordo of Honolulu was arrested by the FBI today in connection with a federal grand jury indictment charging that he forged the signature of a federal judge in order to trick a woman into paying him thousands of dollars for bogus legal services.

According to the indictment, Abordo used the forged signature and a federal court seal to create a phony court order, which he then used to prove to the victim that he’d pulled her Ewa Beach, Hawaii, home out of foreclosure. Abordo allegedly claimed to be a legal expert, which he was not.

The case was initiated when the Clerk's Office of the District Court, District of Hawaii learned of the forged court order containing the signature and seal of U.S. Chief District Judge Derrick K. Watson.  The FBI began investigating.

The indictment alleges that Abordo first met the elderly victim in late 2017 and described himself to her as a “non-licensed attorney” who could help her prevent foreclosure. Abordo, who is not a lawyer and has no legal training, claimed that he had expertise on several legal subjects, including mortgages and adverse possession. He convinced the victim to file a federal lawsuit challenging foreclosure of her home. Nearly each time that Abordo met with the victim, he demanded a cash payment of $1,000 to $3,000 dollars.

Abordo ultimately convinced the victim that the federal judge assigned to the lawsuit had awarded her possession of her home, the indictment said Abordo stated that he would not give her the court order until she paid him additional money.  In reality, the victim’s home had been lost to foreclosure and the federal lawsuit had been dismissed months earlier. The victim, believing Abordo had a real court order, paid him thousands of dollars in exchange for the forged court order.

The forged court order was a two-page document dated June 26, 2019 and titled “Order Granting Plaintiff’s Motion For Adverse Possession Pursuant HRS § 657-31.5 Adverse Possession and 43 U.S. Code § 1068 Lands Held in Adverse Possession.”  The document contained the caption of the federal lawsuit as well as the purported signature of U.S. District Judge Watson, and the seal of the United States District Court for the District of Hawaii.

Abordo assured the victim that the forged court order was a genuine court document and that the judge’s signature on the forged order was genuine, and that the forged court order gave legal possession of the Ewa Beach property to the victim. In reality, and as Abordo then well knew, the forged court order was not genuine, was never issued or signed by the judge, and did not confer any property rights to the victim.

“We will always act to protect the integrity of the court and seek justice for victims of fraud,” said U.S. Attorney Randy Grossman of the Southern District of California. Grossman applauded the work of the prosecution team and the FBI in this matter.

“Trust in our court system is paramount to our society,” said FBI Special Agent in Charge Steven Merrill.  “When individuals forge court documents and victimize our kupuna, the FBI will aggressively pursue those individuals to maintain the public’s confidence in the court system and protect the vulnerable.”

Abordo was arraigned on the indictment by U.S. Magistrate Judge Kendal Newman and entered a plea of not guilty. Judge Newman detained Abordo temporarily and ordered him to appear before U.S. District Judge Lynn Winmill on January 19, 2023, at 9 a.m. for a motion hearing.

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

DEFENDANT          

Edmund Abordo         67        Honolulu, HI

SUMMARY OF CHARGES

18 U.S.C. § 1343, Wire Fraud
Maximum Penalty: Twenty years in prison, $250,000 fine, forfeiture and restitution

18 U.S.C. § 505, Forgery
Maximum Penalty: Five years in prison, $250,000 fine, forfeiture and restitution

18 U.S.C. § 1028A(a)(1), Aggravated Identity Theft
Maximum Penalty: Two years consecutive to underlying count

 

AGENCIES

Federal Bureau of 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.

For Further Information, Contact: Assistant U. S. Attorneys Maritsa A. Flaherty (619) 546-6964 and Larry Casper (619) 546-6734

SAN DIEGO – Justin Gale Mata and Everett Justin Curtis, both residents of Poway, were sentenced in federal court today to 180 months and  151 months in prison, respectively, for supplying the fentanyl that led to the fatal overdose of Brian M. Parrish, a Cal Fire firefighter.

In their plea agreements, the defendants admitted that they knowingly supplied the fentanyl that led to Parrish’s death.

In imposing the fifteen year sentence on defendant Mata, U.S. District Judge Cynthia A. Bashant noted his criminal record and explained that she needed to “worry about protection of the public” in light of the ongoing opioid crisis and Mata’s dealing of fentanyl and other dangerous drugs.

On January 30, 2021, Curtis and Parrish exchanged text messages  regarding the purchase of fentanyl to be acquired from Mata. Curtis picked up Parrish and the two drove to a casino to meet Mata. While at the casino, Curtis facilitated the drug deal. Ultimately, Mata supplied the fatal fentanyl and Parrish subsequently overdosed on the fentanyl. Parrish died early the following morning.

The victim’s family described Parrish in court records as a loving, funny, “nature boy.” Parrish’s father said he was “born smiling.” The loss of Parrish has left a “hole” in the hearts of his entire family, according to his mother, including his parents, his sisters, his three children, and grandchild. Likewise, Parrish’s girlfriend called him “the light” of her life. At sentencing, Parrish’s mother noted that, as a firefighter, her son “ran into danger when others would run away.” Parrish’s fire captain told the court that Parrish “was a great firefighter” who “loved what he did” and “what the job represented.”

“Brian Parrish dedicated himself as a firefighter to combatting California’s deadly wildfires, and his loss is tragic for his family and the entire community,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office will relentlessly pursue justice for victims like Brian, and continue to hold dealers accountable under federal law when their drugs result in death. If you are a dealer – find a different business – you will be caught and no money you make from fentanyl is worth the hard time you will spend in a federal prison cell.” Grossman thanked the prosecution team and agents from DEA’s Overdose Response Team, which was created to address drug overdose deaths in San Diego,  for their excellent work on this case.

“The DEA and our law enforcement partners continue to aggressively pursue people who are supplying  drugs in our community,” said DEA Special Agent in Charge Shelly S. Howe.  “If a dealer provides drugs that cause someone to die, we will be laser focused on bringing them to justice.” 

A third co-defendant in the case, Ashley C. Cohen, pleaded guilty to conspiring with Mata, her boyfriend, to distribute fentanyl. Cohen, who was not implicated in the death of Parrish, was previously sentenced to 41-months.

U.S. Attorney Randy Grossman praised prosecutors Maritsa Flaherty and Larry Casper as well as the agents from DEA’s Overdose Response Team that was created to address drug overdose deaths in San Diego, for their efforts on these cases. 

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

DEFENDANTS  Case Number 21-CR-2063-BAS        Everett Justin Curtis  Age: 48      Poway, CA Justin Gale Mata Age: 41 Poway, CA Ashely Chyanne Cohen Age: 28 San Diego, CA

                             

                                                       

                                                                  

                                                       

SUMMARY OF CHARGES

Mata - Distribution of Fentanyl – Title 21, United States Code, Section 841(a)(1)
Maximum penalty: Forty years in prison; five year minimum

Curtis - Distribution of Fentanyl – Title 21, United States Code, Section 841(a)(1)
Maximum penalty: Twenty years in prison

INVESTIGATING AGENCIES

Drug Enforcement Administration
San Diego Police Department

For Further Information, Contact: Assistant U. S. Attorney Oleksandra “Sasha” Johnson (619) 546-9769

SAN DIEGO – An Arizona woman was sentenced in federal court today to 12 months and 1 day in prison for participating in a large-scale “grandparent scam” racketeering conspiracy. 

According to court documents, Lyda Harris, 75, of Laveen, Arizona, participated in a criminal enterprise that engaged in extortion and fraud to swindle more than $2 million from 70-plus elderly victims across the nation.  At least 10 elderly victims who resided in San Diego County lost over $300,000 to the fraud. 

From approximately November 1, 2019, until October 14, 2020, the members of the criminal enterprise contacted elderly victims by phone, feeding them phony stories that their grandchildren were in legal trouble and needed money to pay for bail, pay medical expenses for car accident victims, or prevent additional charges from being filed. Members of the conspiracy and their associates obtained money from victims through in-person cash pick-ups, by mail or commercial carriers, or via wire transfers. Conspirators laundered the proceeds by transferring the funds or converting from fiat currency to cryptocurrency.

According to court documents, Harris participated in the conspiracy from December 2019 until October 2020.  Harris was arrested in the Republic of Albania in August 2021 and extradited to the United States.  According to Harris’s plea agreement, her role in the criminal enterprise was to receive victim proceeds and funnel them for a coconspirator to convert from fiat currency to cryptocurrency. As part of her sentence, Harris was ordered to forfeit $6,243 in proceeds she personally received from the offense, and to pay $1,208,291.93 to the victims in restitution.

“The defendant was a crucial member of a sophisticated criminal organization that shamelessly exploited the grandparents’ love for their grandchildren,” said U.S. Attorney Randy Grossman.  “The U.S. Attorney’s Office remains committed to investigating and prosecuting fraud committed against elderly adults, and to warn the public about the dangers of elder fraud.” Grossman thanked the prosecution team, the Department of Justice’s Consumer Protection Branch and the San Diego Elder Justice Task Force for their excellent work on this case.

Lyda Harris and the criminal enterprise she was a part of chose to line their pockets at the expense of one of our most vulnerable and trusting populations,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “Today’s sentencing demonstrates the effectiveness of San Diego’s Elder Justice Task Force and the future crime we can deter when working with our local, state, and federal law enforcement partners. We remind the public that if you believe you have been the victim of a scam, please report it to the FBI at IC3.gov

As of today, six of the eight defendants charged in the case have been sentenced. Two defendants are fugitives.

This case was investigated by the San Diego Elder Justice Task Force, which is a collaboration between the U.S. Attorney’s Office, the FBI, the District Attorney’s Office and all San Diego County law enforcement agencies. The Elder Justice Task Force was established in February 2021 and is believed to be the first comprehensive law enforcement effort for this purpose anywhere in the country. The case was prosecuted by the U.S. Attorney’s Office and the Department of Justice’s Consumer Protection Branch.

DEFENDANTS    Case Number 22cr2216-CAB    Tracy Adrine Knowles
Fugitive Age: 30 Orlando, Florida Adonis Alexis Butler Wong 
Fugitive Age: 30 Northbay Village, Florida Timothy Ingram, aka Bleezy 
Sentenced on August 31, 2022 to 108 months in prison. Age: 30 North Hollywood, California Anajah Gifford 
Sentenced on November 17, 2022 to 57 months in prison. Age: 24 North Hollywood, California  Lyda Harris 
Sentenced today to 12 months and 1 day in prison. Age: 74 Laveen, Arizona Joaquin Lopez
Sentenced on August 31, 2022, to 24 months in prison. Age: 46 Hollywood, Florida Jack Owuor 
Sentenced on August 17, 2022, to 46 months in prison. Age: 25 Paramount, California  Tracy Glinton
Sentenced on November 17, 2022, to time served – nine days. Age: 35 Orlando, Florida

     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUMMARY OF CHARGES

Title 18, U.S.C., Sec. 1962(d) – Conspiracy to Conduct or Participate in an Enterprise
Through a Pattern of Racketeering Activity

Maximum penalty: Twenty years in prison and a fine of not more than the greater of twice the amount of gain or loss associated with the offense or $250,000

AGENCY

Department of Justice’s Consumer Protection Branch
San Diego Elder Justice Task Force, which includes: San Diego FBI
San Diego County District Attorney’s Office
San Diego Police Department
San Diego Sheriff’s Department
Carlsbad Police Department
Oceanside Police Department
Escondido Police Department
Chula Vista Police Department
El Cajon Police Department
La Mesa Police Department
National City Police Department
Coronado Police Department 

For Further Information, Contact: Assistant U. S. Attorney Melanie K. Pierson (619) 546-7976

SAN DIEGO – Integral Hygienic Solutions, Inc, dba TruClean, a La Mesa-based sanitation company, pleaded guilty in federal court today to defrauding customers by falsely claiming that its antimicrobial cleaning product was tested and approved by the U.S. Environmental Protection Agency.

The company had claimed that its antimicrobial product, TruClean 365, eliminates bacteria and viruses, including Covid-19, on treated surfaces for one year with a single application. The company also claimed that its product had been submitted to the antimicrobials division at the EPA for testing and that the EPA had validated their claim of one year of effectiveness through “rigorous testing.”

At the beginning of the pandemic in early 2020, the defendants put TruClean’s own labels on bottles of chemical products purchased from a chemical company on the East Coast. Ray Louis Smith Jr., Ramont Joseph Smith, and TruClean then marketed, sold, and distributed the newly re-labeled products as providing year-long protection against infection from viruses, including the virus that causes Covid-19, on its social media pages and its website.

Products represented to kill viruses in the environment are regulated by the EPA as pesticides. None of the products sold under the TruClean name was registered as a pesticide by the EPA, as required by law. Pesticides that are unregistered may not be sold or distributed in the United States. In pleading guilty, the company admitted that it sold over $800,000 worth of the unregistered pesticides.

"The defendants tried to gain commercial advantage during the pandemic by falsely claiming that the federal government had tested and validated their product,” said U.S. Attorney Randy S. Grossman. “The U.S. Attorney’s Office is committed to investigating and prosecuting criminal cases to assist in protecting the  public from frauds such as this.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“The defendants in this case knowingly persisted in their false assertions that their pesticide application provided protection against COVID-19,” said Special Agent in Charge Scot Adair of EPA’s criminal program in California. “As this case demonstrates, EPA and its law enforcement partners are committed to holding responsible parties accountable for false claims that put entire communities at risk.”

“This case demonstrates the EPA Office of Inspector General’s commitment to investigate crimes that undermine the integrity of EPA programs and defraud consumers,” said Special Agent in Charge Garrett J. Westfall of the U.S. EPA OIG. “Our investigative team and law enforcement partners held the subjects accountable by quickly uncovering the potential harm to health and safety and by exposing the false claims promoted by TruClean 365.”

“Homeland Security Investigations (HSI) along with our government partners are committed to protecting the American public against criminal networks attempting to illegally sell products that could endanger lives of U.S. consumers for financial gain,” said HSI San Diego Special Agent in Charge Chad Plantz. “We remain vigilant and will use our broad legal authorities to disrupt and dismantle criminal networks seeking to exploit and benefit from the COVID-19 pandemic.”

This case was prosecuted jointly by the U.S. Attorney’s Office for the Southern District of California, and the U.S. Department of Justice, Environmental Crimes Section.

Sentencing is set for Feb 24, 2023, before U.S. District Judge Todd Robinson.

DEFENDANTS Case Number 22cr2607-TWR   Integral Hygienic Solutions, Inc. Incorporated: 2020 Sheridan, WY Ray Louis Smith, Jr.   San Diego, California Ramont Joseph Smith    San Diego, California

 

 

 

 

 

 

SUMMARY OF CHARGES

Count 1 (Integral Hygienic Solutions, Inc. only)
Wire Fraud – Title 18, U.S.C., Section 1343
Maximum penalty: Five years of probation for a corporation and/or a fine of $500,000, or twice the unlawful gain or loss

Count 2 (all defendants)
Unlawful Sale/Distribution of Pesticides – Title 7, U.S C., Sections 136j and 136l
Maximum penalty: One year in custody and/or a fine of $100,000

AGENCIES

U.S. Environmental Protection Agency, Criminal Investigation Division and Office of Inspector General; Homeland Security Investigations; California Department of Toxic Substances Control

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.

For further information contact: Assistant U. S. Attorneys Nicholas Pilchak (619) 546-9709 or Andrew Haden (619) 546-6961

SAN DIEGO - Self-described “consultant” Waiel “Will” Anton was sentenced today to 12 months and a day in federal prison for years of corrupt conduct after pleading guilty in July to two counts of obstruction of justice.

Anton admitted collecting cash payments from the operator of several unlicensed marijuana dispensaries in exchange for law enforcement information about impending searches, and for continuing to obstruct justice with the same dispensary operator while Anton was on federal pretrial release in one of his criminal cases.

Although he was never a San Diego County Sheriff’s deputy, Anton was a close associate of former Sheriff’s Captain M. Marco Garmo, who pleaded guilty to unlicensed firearms trafficking and admitted an array of corrupt conduct in September 2020. Garmo is currently serving a two-year sentence in federal prison.

In describing the larger case against Garmo and all of his co-defendants, U.S. District Judge Gonzalo Curiel observed that, “had the [federal] government not conducted this investigation and prosecuted Captain Garmo, there was a possibility that we would have had one of the most corrupt government officers ever leading the San Diego Sheriff's Department. And one can only imagine what types of favors, what type of corrupt schemes would have been hatched, would have been employed, would have become the templates for how the sheriff's department operates. And it's horrifying to even think about that prospect.” In pronouncing sentence on Anton, Judge Curiel emphasized that “the public is entitled to honest services by government officials.”

In his plea agreement, Anton admitted providing supposed “consulting” services to multiple operators of unlicensed marijuana dispensaries between January 2017 and February 2019. In particular, Anton collected a fee from the operator of the lucrative “Empire” dispensary in Spring Valley—a region then included in Garmo’s jurisdiction. In return for regular cash payments, Anton provided the operator with advance warning of planned Sheriff’s Department searches of the operator’s business locations, information which Anton received from Garmo.

Anton’s text messages with Garmo reveal the pair discussing a Sheriff’s search of the Empire operator’s competition in May 2018. Garmo reported to Anton that he had instructed his lieutenant to search another illegal dispensary located close to the Empire operator, in order “to scare the fuk outta [him] lol.” Anton responded: “Fuck yeah gman” and “Close them all,” but Garmo wrote back “$$$,” apparently reminding Anton that their focus was Anton’s ongoing profit-making scheme rather than legitimate law enforcement. Anton replied: “I got you.”

In his own plea agreement, Garmo had admitted tipping off a different illegal marijuana dispensary part-owned by his cousin in July 2018, before a separate putative law enforcement search.

At about the same time, Anton ran a different “consulting” venture for applicants for County permits to carry a concealed weapon (CCW). Per court records, in exchange for substantial fees, Anton would help his applicants submit their CCW paperwork and secure early appointments with civilian County staff. In his guilty plea, Anton admitted making an illegal $100 cash payment to a county clerk who ensured favored treatment for his CCW clients. Garmo admitted in his own plea papers that his role in Anton’s scheme was to refer CCW “consulting” clients to Anton in exchange for kickbacks of $100 apiece.

In February 2019, Anton met with an undercover agent from the Bureau of Alcohol Tobacco Firearms and Explosives (ATF), whom Garmo had referred to Anton after selling the undercover agent a pair of off-roster handguns. In exchange for a $1,000 cash payment, Anton called the Licensing clerk whom he had paid off and secured a two-week CCW appointment for the agent instead of the eight-month wait available to the public. During their meeting, Anton bragged that he would become the head of Sheriff’s Licensing after Garmo was elected Sheriff.

After ATF and FBI agents searched Anton’s home on February 13, 2019, Anton placed an unsolicited call to the undercover agent. During the call, Anton admonished the agent nine times in six minutes not to tell federal agents, if questioned, that he had paid Anton any money as part of their deal. As admitted in his plea agreement, Anton added that the undercover agent should falsely claim that he and Anton were friends and business associates.

In March 2021, while on federal pretrial release for his criminal case with Garmo, Anton met with the owner of the unlicensed “Empire” dispensary to offer his services once again. As admitted in his plea agreement, Anton met the illegal dispensary operator in a parking lot and showed him a page of Anton’s criminal discovery in violation of a court order. In exchange for another $5,000 in cash, Anton told the operator who to stay away from because they might be cooperating with law enforcement.

Court documents show that Anton was able to commit these offenses because his associates perceived him as almost a police officer himself. For example, Anton promised to “send a unit”—i.e., a marked police car—to a local businessowner complaining about a homeless person frequenting his shop.

“Proximity to power is not a license to break the law,” said Attorney for the United States Rebecca Church. “Anton leveraged his image as an apparent law enforcement insider to obstruct and subvert justice and to line his own pockets with criminal proceeds. This office will not tolerate unlawful corruption in any form.”

Anton was ordered to forfeit five firearms that he admitted were involved in a violation of criminal law for purposes of forfeiture. In total, approximately 302 firearms and 131,458 rounds of ammunition have been forfeited as part of this investigation. Anton was also ordered to pay a fine of $56,215.

Church praised the talented and dedicated investigators from the ATF and FBI who have worked on this case. She added that the U.S. Attorney’s Office wishes to once again extend its sincerest gratitude to the San Diego County Sheriff’s Department, without whose referral this case would not have been possible. Church also thanked the Sheriff’s Department for their assistance and support throughout the course of the investigation.

“Individuals who knowingly participate in firearms trafficking schemes must take accountability for their role in aiding individuals who acquire firearms illegally,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Monique Villegas. “This complex investigation involving multiple defendants was made possible by the cooperation and collaboration of our federal, state, and local law enforcement partners. We have effectively disrupted yet another firearms trafficking operation.”

“Mr. Anton often purported to be a law enforcement officer and exploited his access to law enforcement information and influence for his own personal gain,” said Stacey Moy, Special Agent in Charge of the FBI San Diego Division. “Today’s sentencing serves as a reminder that the FBI will continue to work with our law enforcement partners to investigate corruption and ensure those who violate the law will be held fully accountable.”

 

Defendants U.S. v. Garmo, et. al, 19-CR-4768-GPC Morad Marco Garmo, 55 years old sentenced to two years in custody, forfeiture of 58 firearms and 5,385 rounds of ammunition, and $8,350 fine, following felony guilty plea Leo Joseph Hamel 65 years old sentenced to one year of probation and 100 days of house arrest, forfeiture of 229 firearms and 126,073 rounds of ammunition, following felony guilty plea Giovanni Vincenzo Tilotta 41 years old sentencing pending, following conviction at trial Fred Magana 45 years old sentencing pending, following guilty plea Waiel Yousif Anton 38 years old  

 

 

 

 

 

 

 

 

 

Summary of Charges

Title 18, U.S.C., Sec. 1512(b)(3) – Attempted Obstruction of Justice
Maximum Penalty: Twenty years in prison

Defendant U.S. v. Anton, 22-CR-1142-GPC Waiel Yousif Anton 38 years old

 

 

 

Summary of Charges

Title 18, U.S.C., Sec. 1512(c)(2) – Attempted Obstruction of Justice
Maximum Penalty: Twenty years in prison

Investigating Agencies

Bureau of Alcohol Tobacco Firearms & Explosives (ATF)

Federal Bureau of Investigation (FBI)

Assistant U. S. Attorneys Nicholas Pilchak (619) 546-9709 or Andrew Haden (619) 546-6961

NEWS RELEASE SUMMARY – November 28, 2022

SAN DIEGO – Self-described “consultant” Waiel “Will” Anton was sentenced today to 12 months and a day in federal prison for years of corrupt conduct after pleading guilty in July to two counts of obstruction of justice. 

Anton admitted collecting cash payments from the operator of several unlicensed marijuana dispensaries in exchange for law enforcement information about impending searches, and for continuing to obstruct justice with the same dispensary operator while Anton was on federal pretrial release in one of his criminal cases.  

Although he was never a San Diego County Sheriff’s deputy, Anton was a close associate of former Sheriff’s Captain M. Marco Garmo, who pleaded guilty to unlicensed firearms trafficking and admitted an array of corrupt conduct in September 2020. Garmo is currently serving a two-year sentence in federal prison.

In describing the larger case against Garmo and all of his co-defendants, U.S. District Judge Gonzalo Curiel observed that, “had the [federal] government not conducted this investigation and prosecuted Captain Garmo, there was a possibility that we would have had one of the most corrupt government officers ever leading the San Diego Sheriff's Department.  And one can only imagine what types of favors, what type of corrupt schemes would have been hatched, would have been employed, would have become the templates for how the sheriff's department operates. And it's horrifying to even think about that prospect.”  In pronouncing sentence on Anton, Judge Curiel emphasized that “the public is entitled to honest services by government officials.” 

In his plea agreement, Anton admitted providing supposed “consulting” services to multiple operators of unlicensed marijuana dispensaries between January 2017 and February 2019.  In particular, Anton collected a fee from the operator of the lucrative “Empire” dispensary in Spring Valley—a region then included in Garmo’s jurisdiction. In return for regular cash payments, Anton provided the operator with advance warning of planned Sheriff’s Department searches of the operator’s business locations, information which Anton received from Garmo. 

Anton’s text messages with Garmo reveal the pair discussing a Sheriff’s search of the Empire operator’s competition in May 2018.  Garmo reported to Anton that he had instructed his lieutenant to search another illegal dispensary located close to the Empire operator, in order “to scare the fuk outta [him] lol.”  Anton responded: “Fuck yeah gman” and “Close them all,” but Garmo wrote back “$$$,” apparently reminding Anton that their focus was Anton’s ongoing profit-making scheme rather than legitimate law enforcement.  Anton replied: “I got you.” 

In his own plea agreement, Garmo had admitted tipping off a different illegal marijuana dispensary part-owned by his cousin in July 2018, before a separate putative law enforcement search. 

At about the same time, Anton ran a different “consulting” venture for applicants for County permits to carry a concealed weapon (CCW).  Per court records, in exchange for substantial fees, Anton would help his applicants submit their CCW paperwork and secure early appointments with civilian County staff.  In his guilty plea, Anton admitted making an illegal $100 cash payment to a county clerk who ensured favored treatment for his CCW clients.  Garmo admitted in his own plea papers that his role in Anton’s scheme was to refer CCW “consulting” clients to Anton in exchange for kickbacks of $100 apiece. 

In February 2019, Anton met with an undercover agent from the Bureau of Alcohol Tobacco Firearms and Explosives (ATF), whom Garmo had referred to Anton after selling the undercover agent a pair of off-roster handguns.  In exchange for a $1,000 cash payment, Anton called the Licensing clerk whom he had paid off and secured a two-week CCW appointment for the agent instead of the eight-month wait available to the public. During their meeting, Anton bragged that he would become the head of Sheriff’s Licensing after Garmo was elected Sheriff.

After ATF and FBI agents searched Anton’s home on February 13, 2019, Anton placed an unsolicited call to the undercover agent.  During the call, Anton admonished the agent nine times in six minutes not to tell federal agents, if questioned, that he had paid Anton any money as part of their deal. As admitted in his plea agreement, Anton added that the undercover agent should falsely claim that he and Anton were friends and business associates. 

In March 2021, while on federal pretrial release for his criminal case with Garmo, Anton met with the owner of the unlicensed “Empire” dispensary to offer his services once again.  As admitted in his plea agreement, Anton met the illegal dispensary operator in a parking lot and showed him a page of Anton’s criminal discovery in violation of a court order.  In exchange for another $5,000 in cash, Anton told the operator who to stay away from because they might be cooperating with law enforcement. 

Court documents show that Anton was able to commit these offenses because his associates perceived him as almost a police officer himself.  For example, Anton promised to “send a unit”—i.e., a marked police car—to a local businessowner complaining about a homeless person frequenting his shop. 

“Proximity to power is not a license to break the law,” said Attorney for the United States Rebecca Church. “Anton leveraged his image as an apparent law enforcement insider to obstruct and subvert justice and to line his own pockets with criminal proceeds. This office will not tolerate unlawful corruption in any form.”

Anton was ordered to forfeit five firearms that he admitted were involved in a violation of criminal law for purposes of forfeiture.  In total, approximately 302 firearms and 131,458 rounds of ammunition have been forfeited as part of this investigation.  Anton was also ordered to pay a fine of $56,215. 

Church praised the talented and dedicated investigators from the ATF and FBI who have worked on this case.  She added that the U.S. Attorney’s Office wishes to once again extend its sincerest gratitude to the San Diego County Sheriff’s Department, without whose referral this case would not have been possible.  Church also thanked the Sheriff’s Department for their assistance and support throughout the course of the investigation.

“Individuals who knowingly participate in firearms trafficking schemes must take accountability for their role in aiding individuals who acquire firearms illegally,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Monique Villegas. “This complex investigation involving multiple defendants was made possible by the cooperation and collaboration of our federal, state, and local law enforcement partners. We have effectively disrupted yet another firearms trafficking operation.” 

“Mr. Anton often purported to be a law enforcement officer and exploited his access to law enforcement information and influence for his own personal gain,” said Stacey Moy, Special Agent in Charge of the FBI San Diego Division. “Today’s sentencing serves as a reminder that the FBI will continue to work with our law enforcement partners to investigate corruption and ensure those who violate the law will be held fully accountable.”

U.S. v. Garmo, et. al, 19-CR-4768-GPC

Defendants

Morad Marco Garmo, 55 years old—sentenced to two years in custody, forfeiture of 58 firearms and 5,385 rounds of ammunition, and $8,350 fine, following felony guilty plea

Leo Joseph Hamel, 65 years old—sentenced to one year of probation and 100 days of house arrest, forfeiture of 229 firearms and 126,073 rounds of ammunition, following felony guilty plea

Giovanni Vincenzo Tilotta, 41 years old—sentencing pending, following conviction at trial

Fred Magana, 45 years old—sentencing pending, following guilty plea

Waiel Yousif Anton, 38 years old

Summary of Charges

Title 18, U.S.C., Sec. 1512(b)(3) – Attempted Obstruction of Justice

Maximum Penalty: Twenty years in prison

U.S. v. Anton, 22-CR-1142-GPC

Defendant

Waiel Yousif Anton, 38 years old

Summary of Charges

Title 18, U.S.C., Sec. 1512(c)(2) – Attempted Obstruction of Justice

Maximum Penalty: Twenty years in prison

Investigating Agencies

Bureau of Alcohol Tobacco Firearms & Explosives (ATF)

Federal Bureau of Investigation (FBI) 

For Further Information, Contact: Assistant U. S. Attorney Steven J. Poliakoff (619) 546-7058 and Janet A. Cabral (619) 546-8715 

   

SAN DIEGO – A federal judge held, following a recent bench trial, that a San Diego woman failed to establish her claims of medical malpractice and medical battery against the United States.

Instead, the court found that the evidence at trial “overwhelmingly” supported the United States’ position that obstetrician Sandra Lopez, M.D., from the federally-funded Vista Community Clinic (“VCC”), met the standard of care in her treatment of the plaintiff and in performing an emergency Cesarean-section delivery with informed consent.  VCC is one of many federally-funded health centers nationwide that receive federal funding to provide medical care in underserved communities.

The plaintiff, who was 41½ weeks pregnant, was admitted to Tri-City Medical Center for induction of labor on November 15, 2017. Her attending VCC obstetrician, Sandra Lopez, M.D., ordered Pitocin to induce labor. The plaintiff requested, and an anesthesiologist inserted, a continuous epidural anesthetic to relieve pain. Both the Pitocin and epidural anesthetic were administered pursuant to Tri-City Hospital Medical Center protocols, which the evidence demonstrated met the standard of care. 

According to evidence presented at trial, at approximately 5:20 a.m, the following morning, nursing staff noted a markedly diminished fetal heartbeat, and called Dr. Lopez, who arrived at the plaintiff’s bedside by 5:21 a.m. Dr. Lopez confirmed that the baby’s heartbeat was dangerously slow and weak. Dr. Lopez consulted with the plaintiff, who agreed to undergo an emergency Cesarean-section delivery to prevent neurologic injury and possibly death to her baby. Dr. Lopez called for an emergency Cesarean-section delivery per Tri-City Hospital protocol, which should result in all members of the surgical team promptly appearing at the operating room. However, the hospital paging notification system (for which the United States was not responsible) was delayed, and the anesthesiologist did not receive timely notification.  

The baby’s very slow and very weak heartbeat meant that its blood supply to critical organs, including the brain, was being severely compromised. If allowed to continue, the baby would suffer irreversible brain damage and possibly death. Not knowing when, or even if, the anesthesiologist would arrive, Dr. Lopez consulted with the plaintiff, who again consented to Cesarean-section delivery of her baby, but now with injection of a local anesthetic to augment the anesthesia that she already had in place with the epidural anesthetic. Dr. Lopez conducted a pinch test in the plaintiff’s lower abdomen, both before and after the injection of the local anesthetic, to confirm that the plaintiff did not have sensation in the area. 

During the surgery, the anesthesiologist arrived and further anesthetized the plaintiff.  Within one minute of beginning the surgery, Dr. Lopez delivered a normal and healthy baby. 

In her complaint, which was reported by many local news outlets after its filing, the plaintiff alleged that the United States, through Dr. Lopez, breached the standard of care in the administration of Pitocin (thereby creating the baby’s distress) and committed medical battery by performing an emergency Cesarean-section delivery without anesthesia, and without the plaintiff’s consent.  The Court disagreed and found that:

Plaintiff has failed to establish her claims of medical malpractice and medical battery in this case.  The evidence overwhelmingly supports Defendant’s position that Dr. Lopez met the standard of care in her treatment of Plaintiff and proceeded to perform the emergency c-section with informed consent, and to perform it under local anesthesia with informed consent. 

"Dr. Lopez’s quick thinking and her command of the operating room in this obstetrical emergency was of the highest order and resulted in the birth of a healthy baby,” said U.S. Attorney Randy Grossman. “The United States Attorney’s Office was honored to defend this case and is grateful that justice was found in the court’s ruling."

Case Number

Delfina Mota v. United States of America, 19-cv-1212-AJB-NLS

 

SUMMARY OF CLAIMS

1. Medical negligence
2. Medical Battery

AGENCY

Department of Health and Human Services

 

Assistant U. S. Attorneys Owen Roth and Aaron P. Arnzen

NEWS RELEASE SUMMARY – November 22, 2022

SAN DIEGO – Canadian resident David Stephens and California residents Donald Danks, Jonathan Destler, and Robert Lazerus are charged in a federal grand-jury indictment with securities fraud in connection with a pump-and-dump scheme, and Danks is additionally charged with money laundering, arising from their alleged manipulation of the market for shares of Quebec-based Loop Industries, Inc.

Danks, Destler, and Lazerus are scheduled to appear in federal court on November 28, 2022.

According to the allegations in the indictment, in 2014, Stephens acquired control over a publicly-traded “shell” entity whose free-trading shares were held in various offshore nominee entities, and in 2015 worked with Danks and Destler to conduct a reverse-merger of the shell with Loop, thereby generating publicly tradable Loop shares. Without disclosing his controlling interest in all, or nearly all, freely tradeable Loop shares, Stephens directed sales of shares on the open market and transferred large blocks to Danks, a Loop board member, and Destler, a controlling shareholder. In turn, Danks and Destler made material false statements and omissions about their interests in Loop, failed to disclose those interests, and directed and conducted transactions in Loop stock. Danks and Destler worked with Lazerus to promote the stock, including by having Lazerus successfully persuade an elderly investor to purchase millions of dollars of shares in 2017. Stephens, Danks, Destler and Lazerus then divided the proceeds from the sales among themselves.

The indictment further alleges that Lazerus, assisted by Danks and Destler, sought to promote Loop shares by passing material, non-public information about Loop to an investor, who was in fact an undercover agent for the FBI. Finally, the indictment alleges that Danks used more than $500,000, procured as a margin loan from Loop shares, to finance the purchase of a home in Southern California.

“Securities fraud schemes victimize investors and degrade the integrity of the securities markets,” said U.S. Attorney Randy Grossman. “This indictment reflects a commitment by this office and its agency partners to keep a vigilant watch for market manipulation and hold those who violate our securities laws accountable.” Grossman thanked the prosecution team, the FBI, and the Securities and Exchange Commission for their excellent work on the case.

“Today’s indictment sends a strong message that the FBI will aggressively pursue anyone who thinks they can get away with defrauding innocent investors for their personal gain,” said Stacey Moy, Special Agent in Charge of the FBI San Diego Field Office. “The FBI is committed to investigating allegations of significant financial crime and market manipulation, and in doing so, will work to restore public trust in a fair market.”

The Securities and Exchange Commission has also taken civil action against the named defendants.

DEFENDANTS                                             Case Number 22cr2701-BAS                           

David Stephens                                               Age: 66                                   Alberta, Canada

Donald Danks                                                 Age: 65                                   Newport Beach, CA

Jonathan Destler                                             Age: 59                                   Los Angeles, CA

Robert Lazerus                                                Age: 66                                   Solana Beach, CA

SUMMARY OF CHARGES

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

Securities Fraud –Title 18, U.S.C. Secs. 78(b), 78ff & Title 17, C.F.R. Sec. 240.10b-5

Money Laundering – Title 18 U.S.C., Sec. 1956(a)(1)(B)(i)

Maximum penalty: Twenty years in prison and a fine of not more than the greater of twice the amount of gain or loss associated with the offense or $250,000.

AGENCIES

Federal Bureau of Investigation

United States Securities and Exchange Commission Boston Regional Office

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