Southern District of California

Assistant U. S. Attorney Oleksandra “Sasha” Johnson (619) 546-9769  

NEWS RELEASE SUMMARY – November 17, 2022

SAN DIEGO – Two more defendants were sentenced in federal court today for participating in a large-scale “grandparent scam” racketeering conspiracy. 

Anajah Gifford, 24, of North Hollywood, California, received a sentence of 57 months in custody. Tracy Glinton, 35, of Orlando, Florida, was sentenced to time served. According to court documents, the defendants 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 targeted elderly Americans, contacting them by phone and 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.

As part of her plea agreement, defendant Anajah Gifford admitted that she personally conducted cash pick-ups from victims under codefendant Timothy Ingram’s direction, and helped Ingram pay unlawful proceeds to codefendant Tracy Knowles. Gifford, personally and with co-defendant Ingram, also recruited and coordinated money mules in California. As part of her sentence, Gifford was ordered to forfeit $52,750 in proceeds she personally received from the offense and to pay $1,235,406.93 to the victims in restitution.

According to court documents, defendant Tracy Glinton’s primary role was to help codefendant Tracy Knowles receive proceeds from coconspirators who obtained victim funds.  In her plea agreement, Glinton admitted that she knew the money she received constituted proceeds of grandparent scams. As part of her sentence, Glinton was ordered to forfeit $9,950 in proceeds she personally received from the offense, and to pay $471,600 to the victims in restitution.  Ingram was previously sentenced to 108 months; Knowles remains at large. 

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 San Diego County 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.

“The defendants were members of a particularly sophisticated grandparent scam enterprise that callously and shamelessly targeted the elderly across our country,” said U.S. Attorney Randy Grossman. “Today’s sentencings hold the defendants accountable not only for the financial losses, but also the deep and long-lasting psychological damage their crimes can cause their victims. The U.S. Attorney’s Office remains committed to seeking justice in frauds committed against elderly adults.  We will also continue to warn the public about the dangers of elder fraud.” Grossman thanked the prosecution team and the Elder Justice Task Force for their excellent work on this case.

“Because seniors are a particularly vulnerable victim group and are often specifically targeted for financial fraud crimes, the FBI and our law enforcement partners have prioritized our efforts to address elder fraud,” said Stacey Moy, Special Agent in Charge of the FBI San Diego Division. “Using such deceitful tactics bilk hard-earned money from aging victims – leaving so many financially devastated in their retirement years without recourse for recovery. We encourage anyone who believes they are a victim of fraud or know a senior who may be, regardless of financial loss, to immediately report the incident to the FBI or another law enforcement agency.”

As of today, six of the eight defendants charged in the case have pleaded guilty. Two defendants are fugitives and remain at large.

DEFENDANTS                                             Case Number 21cr2216-CAB                                       

Tracy Adrine Knowles                                   30        Orlando, Florida

Fugitive                                                     

Adonis Alexis Butler Wong                           30        Northbay Village, Florida

Fugitive

Timothy Ingram, aka Bleezy                          30        North Hollywood, California

Sentenced on August 31, 2022, to 108 months in prison.                                                                                              

Anajah Gifford                                                24        North Hollywood, California

Sentenced today to 57 months.

Lyda Harris                                                     74        Laveen, Arizona

Released on bond. Sentencing set for December 1, 2022.

Joaquin Lopez                                                 46        Hollywood, Florida

Sentenced on August 31, 2022, to 24 months in prison.

Jack Owuor                                                     25        Paramount, California                                           

Sentenced on August 17, 2022, to 46 months in prison. 

Tracy Glinton                                                 35        Orlando, Florida

Sentenced today to time served – Nine days.

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

A federal jury today convicted a political consultant for his role in funneling illegal foreign campaign contributions from a Russian foreign national to a 2016 presidential campaign. 

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

As such attendance and engagement required a contribution, Benton caused the Russian foreign national to wire $100,000 to Benton’s political consulting firm for purposes of making 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 foreign 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 foreign national – as the source of the funds.    

Benton was convicted 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. He is scheduled to be sentenced on Feb. 17, 2023, and faces a maximum sentence of 20 years in prison on the top count. 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, U.S. Attorney Matthew Graves for the District of Columbia, 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, are prosecuting the case.

Assistant U. S. Attorney Sean Van Demark (619) 546-7657

NEWS RELEASE SUMMARY—November 15, 2022

SAN DIEGO—Drug dealer Saul Caro was sentenced in federal court today to 15 years in prison for providing the fentanyl that resulted in the overdose death of a 35-year-old business owner who lived in downtown San Diego.

Caro pleaded guilty on June 1, 2022, admitting that he sold powdered fentanyl to a man identified in court records as M.S. on April 11, 2021. The victim overdosed in his apartment and was found two days later.

While investigating his death, federal agents posed as the victim and texted Caro, requesting drugs. They set up a meeting time near a restaurant on July 22, 2021. Caro was arrested there. Officers found a plastic bindle containing a white powdery substance with a green tint that fell out of his left pants leg. It tested positive for fentanyl.

During a subsequent search of Caro’s residence, a loaded, unregistered, semi-automatic privately manufactured firearm with no serial number, or “ghost gun,” was located along with more ammunition, more drugs, and drug paraphernalia.

According to the government’s sentencing memo, the defendant communicated with the victim via text not only about getting the drugs, but also about the strength of the drug or its authenticity. For example, on April 12, 2020, the victim texted Caro about the potency of some drugs he had received.

M.S.: OK lemme know when here

M.S.: Lotttttt stronger! … def need to warn ppl

Caro: I did

M.S.: Yeah thanks otherwise would been bad news for me lol

On November 6, 2020, M.S. informed Caro that the drugs he received were altered in some way.

M.S.: Man, so the shit has real stuff in it no doubt. But they cut it with something that makes ur heart slam like nothing I’ve ever felt. Was worried for a few mins. Heart pounds like a sledgehammer jack hammering out of my chest… ugh why the hell did they have to put that shit in here and ruin it!

M.S.: Literally hands shaking like a leaf it’s crazy

Caro: He told me to be careful cuz its strong

M.S.: Lol yeah

Caro: My bads

“The defendant chose to disregard the significant risk associated with selling fentanyl and other drugs,” said U.S. Attorney Randy Grossman. “His choices had severe consequences for a family that lost a beloved son and brother. The driving factor for all of us in law enforcement is the human toll that fentanyl is taking. We see the grief and destruction in person every day. We will continue to seek justice for every victim.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“There is no place to hide,” said DEA Special Agent in Charge Shelly Howe. “The DEA and its partners will continue to track down, arrest, and prosecute those who are driving addiction.”

“Today’s sentencing serves not only as a testament to HSI’s commitment to bring to justice those responsible for another overdose death but should also serve as a reminder to people; abusing drugs these days will likely kill you, said Chad Plantz, special agent in charge for HSI San Diego. “The men and women of HSI, alongside our partnered law enforcement agencies, will stop at nothing to pursue those that deal deadly drugs in our communities.”

Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation. This case is the result of ongoing efforts by the U.S. Attorney’s Office, the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the San Diego Police Department, and the California Department of Health Care Services to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County.

DEFENDANT                                               Case Number 21-CR-3100-GPC                                         

Saul Caro                                Age: 33                                   San Diego, CA

SUMMARY OF CHARGES

Distribution of Fentanyl – Title 18, United States Code, Section 841(a)(1)

Maximum penalty: Twenty years in prison

AGENCY

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

Assistant U. S. Attorneys Cindy Cipriani (619-546-9608) and Alicia Williams (619-546-8917) and Law Enforcement/Outreach Coordinator Shastity Urias (619-546-9399)

NEWS RELEASE SUMMARY – November 14, 2022

SAN DIEGO – Beginning today, U.S. Attorney Randy Grossman, along with community and law enforcement leaders, will participate in a statewide United Against Hate (UAH) Week campaign.

The week of Nov. 14-21 is a call for local civic action to stop the hate and biases that pose a dangerous threat to the safety and civility of our neighborhoods, towns and cities. The UAH campaign, which emerged from a poster campaign by Bay Area Cities, has spread to more than 200 communities.  San Diego will participate for the first time this year. 

Inspired by successful campaigns in prior years throughout California, the U.S. Attorney’s office, through its leadership role chairing the San Diego Regional Anti-Hate Crime Coalition, has collaborated with multiple partners to launch a week of positive messages and diverse events designed to empower local residents and communities to stand against racism and alter the course of growing intolerance.

“When law enforcement, community leaders and residents work together against hate, we can restore respect, embrace the strength of diversity and build inclusive and equitable communities for all,” Grossman said.

Dozens of organizations, civic/law enforcement leaders and agencies have signed on as supporters. Scheduled events include a social media/Twitter storm on November 15th; several free National Conflict Resolution Center webinars on “The Art of Inclusive Communication” and the “Bystander Challenge;” training by the District Attorney’s Office on hate crimes and victim resources for vulnerable communities; an Antisemitism and Bias Seminar offered by Anti-Defamation League; and a ceremony honoring the winners of a school-based essay/poster contest, sponsored by the U.S. Attorney’s office and the Earl B. Gilliam Bar Association Foundation. In addition, the County of San Diego and City of San Diego are expected to pass proclamations declaring this week “United Against Hate Week” in San Diego. 

The full calendar of events can be accessed at: https://www.justice.gov/usao-sdca/united-against-hate.

“Hate Crimes are the highest priority of the FBI’s Civil Rights program due to the devastating impact they have on families and communities” said Stacey Moy, FBI Special Agent in Charge of the San Diego Field Office. “We will always work with our law enforcement and private sector partners to educate our communities about these violations while continuing to investigate and prevent violent incidents motivated by hate or bias. We also urge the public to report any suspected hate crimes to the FBI and local law enforcement.”

“I stand united against hate alongside the dedicated team at the DA’s office, our diverse communities and law enforcement,” said San Diego County District Attorney Summer Stephan. “Hate-fueled crimes that target people based on their race, ethnicity, nationality, religion, sexual orientation, gender or disability harms the victim and also spreads fear throughout the community. We will not tolerate this, which is why prosecuting hate crimes is a priority for the San Diego County District Attorney’s Office. In combatting hate crimes, we nearly tripled the number of hate crime cases we have prosecuted in recent years, we protected victims harmed by hate and we increased access to reporting hate incidents online.”

“The San Diego County Sheriff's Department does not tolerate any acts of hate in our communities,” said Sheriff Anthony Ray. “We are proud to join the U.S. Attorney's Office, as well as our law enforcement and community partners, in promoting a message of unity and inclusion.”

Members of the public are encouraged to report hate incidents and hate crimes to the Federal Bureau of Investigation at 1-800-CALL-FBI or online at https://tips.fbi.gov/. Please call 911 if you need emergency assistance.

Assistant U. S. Attorney Andrew Sherwood (619) 546-9690   

NEWS RELEASE SUMMARY – November 9, 2022

SAN DIEGO – Former U.S. Postal Service mail carrier Breanna Wares pleaded guilty in federal court, admitting that she stole approximately $2,700 worth of gift cards, cash and jewelry from customers.

According to her plea agreement, Wares stole these items from approximately 20 customers along her route near Camp Pendleton at the Brooks Street Station in Oceanside. Most of the addresses on her route were located on the U.S. Marine Corp Base Camp Pendleton and many of the victims were active members of the military.

A customer along Wares’ route reported that she mailed two gift cards to two different people and neither person received them. This report prompted agents from the Office of Inspector General to launch an investigation and discover that there were several other complaints of missing mail along Wares’ route.

Through the course of the investigation, agents determined that Wares unlawfully redeemed over 30 Target gift cards that had been placed in the mail, totaling more than $1,400. During a search of Ware’s personal vehicle, agents discovered  more than 40 gift cards valued at more than $1,300. Agents also found sheets of stamps, jewelry, foreign currency, rifled and unrifled First Class Mail greeting card envelopes. Agents also found a Trader Joe’s gift card in Wares’ wallet.

When interviewed by agents from the Office of Inspector General, Wares admitted to stealing mail from customers for over a year.

Wares has agreed to pay restitution to her victims and a condition of her felony guilty plea is that she is prohibited from working in the mail, package, receipt and/or delivery industry.

“The defendant stole from those who entrusted their confidence in the delivery system,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office is committed to working with the U.S. Postal Service to protect the integrity of the system and bring justice to the victims of these crimes. Grossman thanked the prosecution team and the U.S. Postal Service Office of Inspector General for their excellent work on this case.

“The U.S. Postal Service employs over 630,000 men and women who are dedicated public servants,” said U.S. Postal Service Office of Inspector General, Western Pacific Area Field Office, Executive Special Agent-in-Charge Glenn San Jose. “For over two centuries, the Postal Service has honored its fundamental commitment to protect the sanctity of the U.S. Mail. Today’s guilty plea demonstrates that theft of U.S. Mail, committed by a Postal Service employee, will not be tolerated. The public we serve can rest assured that the Postal Service Office of Inspector General, U.S. Attorney’s Office, and our partner law enforcement agencies, remain committed to safeguarding the integrity of the U.S. Mail and ensuring the accountability and integrity of U.S. Postal Service employees.”

DEFENDANTS                                             Case Number 22cr1465                                               

Breanna Wares                                               Age: 39                                   San Diego, CA

SUMMARY OF CHARGES

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

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

AGENCY

United States Postal Service - Office of Inspector General

Former U.S. Army helicopter pilot-turned-civilian-contractor Shapour Moinian, 67, of San Diego, was sentenced in federal court today to 20 months in prison for acting as an agent of the government of the People’s Republic of China (PRC) and accepting thousands of dollars from representatives of the Chinese government to provide aviation-related information from his defense-contractor employers.

According to court documents, Moinian served in the U.S. Army in the United States, Germany and South Korea from approximately 1977 through 2000. After his service, Moinian worked for various cleared defense contractors in the United States – including in San Diego - as well as the Department of Defense. “Cleared” is a term that indicates a contractor is permitted to work on projects that involve classified information.

According to his plea agreement, while Moinian was working for a cleared defense contractor, or CDC, on various aviation projects used by the military and U.S. intelligence agencies, he was contacted by an individual in China who claimed to be working for a technical recruiting company. This person offered Moinian the opportunity to consult for the aviation industry in China.

In March 2017, Moinian travelled to Hong Kong where he met with this purported recruiter and agreed to provide information and materials related to multiple types of aircraft designed and/or manufactured in the United States in exchange for money. Moinian accepted approximately $7,000-$10,000 in U.S. currency during that meeting. According to his plea agreement, at this meeting and at all subsequent meetings, Moinian knew that these individuals were employed or directed by the PRC.

Upon returning to the United States, Moinian began gathering aviation-related materials, which included transferring material from a CDC to a thumb drive. In September 2017, Moinian traveled overseas and, during a stopover at the Shanghai airport, met with Chinese government officials and provided aviation-related materials on a thumb drive, including proprietary information from a CDC. Thereafter, Moinian arranged to be paid for this information through the South Korean bank account of his stepdaughter. Moinian told his stepdaughter that these funds were payment for his consulting work overseas and instructed her to transfer the funds to him in multiple transactions.

Moinian also received a cell phone and other equipment from these individuals to communicate with them and aid in the electronic transfer of materials and information.

At the end of March 2018, Moinian traveled to Bali and met with these same individuals again. Later that year, he began working at another CDC. During this timeframe, the same individuals in China transferred thousands of dollars into the South Korean bank account of Moinian’s stepdaughter, who subsequently wired the funds to Moinian in multiple transactions.

In August 2019, Moinian traveled again to Hong Kong and met with these same individuals where he was again paid approximately $22,000 in cash for his services. Moinian and his wife smuggled this cash back into the United States.

According to his plea agreement, Moinian also admitted that he lied on his government background questionnaires in July 2017 and March 2020, when he falsely stated that did not have any close or continuing contacts with foreign nationals and that no foreign national had offered him a job.

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Randy Grossman for the Southern District of California and Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division made the announcement.

The FBI and Naval Criminal Investigative Service investigated the case.

Assistant U.S. Attorneys Fred Sheppard and John Parmley for the Southern District of California and Trial Attorney Menno Goedman of the National Security Division’s Counterintelligence and Export Control Section prosecuted the case.

Assistant U. S. Attorneys Fred Sheppard (619) 546-8237 and John Parmley (619) 546-7957

 NEWS RELEASE SUMMARY – November 7, 2022

SAN DIEGO – Former U.S. Army helicopter pilot-turned-civilian-contractor Shapour Moinian was sentenced in federal court today to 20 months for acting as an agent of China and accepting thousands of dollars from representatives of the Chinese government to provide aviation-related information from his defense-contractor employers.

During today’s sentencing hearing, U.S. District Judge Jeffrey T. Miller told the defendant: “This was industrial espionage, bordering on military espionage…These were extremely serious offenses against the United States.”

U.S. Attorney Randy Grossman said: “Today this defendant is being held to account for selling American technology and intellectual property to the Chinese. This crime was committed by a former member of the U.S. military who chose cash over his company and country. The United States will aggressively investigate and prosecute anyone who works at the direction of foreign governments to steal from Americans.”

“Mr. Moinian deserves to be held fully accountable for betraying his oath to the United States, selling sensitive information to the Chinese government, and lying repeatedly to cover up his crimes,” said Special Agent in Charge Brice Miller of the NCIS Office of Special Projects. “This sentencing should make it clear: NCIS and our partners are fully committed to protecting the U.S. military and rooting out criminality that threatens the superiority of the U.S. warfighter.”

Moinian served in the Army in the United States, Germany, and South Korea from approximately 1977 through 2000. After his service, Moinian worked for various cleared defense contractors (CDC) in the United States – including in San Diego - as well as the Department of Defense. “Cleared” is a term that indicates a contractor is permitted to work on projects that involve classified information.

According to his plea agreement, while Moinian was working for a CDC on various aviation projects used by the military and U.S. intelligence agencies, he was contacted by an individual in China who claimed to be working for a technical recruiting company. This person offered Moinian the opportunity to consult for the aviation industry in China.

In March of 2017, Moinian travelled to Hong Kong where he met with this purported recruiter and agreed to provide information and materials related to multiple types of aircraft designed and/or manufactured in the United States in exchange for money. Moinian accepted approximately $7,000-$10,000 in United States currency during that meeting. According to his plea agreement, at this meeting and at all subsequent meetings, Moinian knew that these individuals were employed or directed by the government of the People’s Republic of China.

Upon returning to the United States, Moinian began gathering aviation-related materials, which included transferring material from a CDC to a thumb drive. In September 2017, Moinian traveled overseas. During a stopover at the Shanghai airport, he met with Chinese government officials and provided aviation-related materials on a thumb drive, including proprietary information from a CDC. Thereafter, Moinian arranged to be paid for this information through the South Korean bank account of his stepdaughter. Moinian told his stepdaughter that these funds were payment for his consulting work overseas and instructed her to transfer the funds to him in multiple transactions.

Moinian also received a cell phone and other equipment from these individuals to communicate with them and aid in the electronic transfer of materials and information.

At the end of March 2018, Moinian traveled to Bali and met with these same individuals again. Later that year, he began working at another CDC. During this timeframe, the same individuals in China transferred thousands of dollars into the South Korean bank account of Moinian’s stepdaughter, who subsequently wired the funds to Moinian in multiple transactions.

In August 2019, Moinian traveled again to Hong Kong and met with these same individuals where he was again paid approximately $22,000 in cash for his services. Moinian and his wife smuggled this cash back into the United States.

Moinian also admitted that he lied on his government background questionnaires in July 2017 and March 2020, when he falsely stated that did not have any close or continuing contacts with foreign nationals and that no foreign national had offered him a job.

Grossman thanked the prosecution team as well as the FBI, Naval Criminal Investigative Service  and the Department of Justice’s National Security Division for their excellent work on this case.

DEFENDANTS                                          Case Number          21CR02927-JM

Shapour Moinian                                   Age: 67                 San Diego

SUMMARY OF CHARGES

Title 18, United States Code, Section 951 (Acting as an Agent of a Foreign Government)

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

Title 18, United States Code, Section 1001 (Materially False, Fictitious, or Fraudulent Statement or Representation)

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

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Naval Criminal Investigative Service

Assistant U. S. Attorney Morgan Suder (619) 546-8819 and Betsey Boutelle (619) 546-8764  

NEWS RELEASE SUMMARY – November 2, 2022

SAN DIEGO – A federal jury has returned a unanimous verdict on Thursday in favor of the United States, rejecting allegations that the Navy wrongfully discriminated in selecting a Hispanic applicant over a Caucasian applicant for a supervisory engineering position in 2018. 

The dispute focused on the process for promoting civilian engineers at Fleet Readiness Center Southwest (“FRCSW”), which supports the nation’s aviation warfighters through overhaul, repair, and maintenance of Navy and Marine Corps front line tactical, logistical, and rotary-wing aircraft and their components. In 2018, FRCSW posted a vacancy announcement for a Supervisory Electronics Engineer, a high-level supervisory position requiring excellent communication, problem-solving, and collaboration skills. The plaintiff, Brett Gardner, one of three internal applicants, was not selected.  Gardner then initiated administrative proceedings, alleging that the selecting official, a Hispanic woman, discriminated against him based on race.  Two years later, the plaintiff voluntarily left the Navy to start a consulting business.

Following a lengthy administrative process and two years of litigation in U.S. District Court, the case proceeded to trial before a jury on October 24, 2022.   During four days of evidence, multiple current and former FRCSW employees testified, about the thorough, unbiased process the Navy follows to ensure that promotion decisions are based on merit, not on impermissible factors such as race, ethnicity, national origin, sex, or disability.

During the 2018 promotion process, the selecting official—the department head of Avionics and Propulsion and Power—appointed a three-member advisory panel to evaluate the applicants.  One panel member served as EEO representative for the process, and he received additional EEO training immediately before the candidate interviews. 

The advisory panel members all testified that they independently reviewed and scored the applicants’ resumes, and that each candidate was asked the same five interview questions. The selecting official explained that she drafted the interview questions but gave the panel chairperson flexibility to modify them if desired. 

The three panel members all testified that they scored the candidates based on merit, and that the selected candidate outperformed the plaintiff in the interview process. They presented the scores and a recommendation to the selecting official, and she followed the panel’s recommendation.  Many witnesses testified about the selecting official, emphasizing that she makes promotion decisions based on qualifications, not on race or other impermissible factors. She had promoted numerous Navy engineers of many races over the past decades, and she did not consider race in any of those decisions.

After deliberating less than an hour, the jury of seven citizens returned a unanimous verdict for the Navy on October 27, 2022, rejecting the claims of racial discrimination. 

“The jury’s verdict confirms that the Navy’s process in this case was fair and merit-based,” said First Assistant U.S. Attorney Andrew Haden. Haden thanked the trial team for their excellent work on this case.

“Fleet Readiness Center Southwest takes its duty to eliminate discrimination seriously,” said Katerina Chau, attorney with the Office of Counsel, Fleet Readiness Center Southwest.  “We thank the jury for their time in hearing and considering the evidence in this important case.”

Case Number

Brett Gardner v. Secretary of the Navy, 20-cv-2172-MMA-RBB

SUMMARY OF CLAIMS

1. Race Discrimination in Violation of Title VII of the Civil Rights Act (Unanimous Jury Verdict in favor of the Navy)
2. Retaliation in Violation of Title VII of the Civil Rights Act (Summary Judgment entered for the Navy prior to trial)

AGENCY

Department of the Navy – Fleet Readiness Center Southwest        

Assistant U. S. Attorneys Peter Ko (619) 546-7359 and Mark Conover (619) 546-6763

NEWS RELEASE SUMMARY – October 27, 2022

SAN DIEGO – Christopher Toups, who at the time of his crimes was a chief petty officer in the U.S. Navy, pleaded guilty in federal court today, admitting that he and others participated in a scheme to file false claims to obtain unearned benefits from an insurance program that compensates service members who suffer serious and debilitating injuries while on active duty.

According to his plea agreement, participants in the scheme obtained approximately $2 million in payments from fraudulent claims submitted to the insurance program - Traumatic Servicemembers Group Life Insurance Program, or TSGLI - and Toups personally obtained about $400,000.

At today’s hearing, Toups pleaded guilty to conspiracy to commit wire fraud. He admitted that from 2012 to at least December 2015, he conspired with his then-spouse Kelene McGrath, Navy Dr. Michael Villarroel, and others to obtain money from the United States by making claims for life insurance payments based on exaggerated or fake injuries and disabilities. He is scheduled to be sentenced on February 3, 2023, at 9 a.m.

“The theft of military healthcare dollars directly ‎harms service members and taxpayers,” said U.S. Attorney Randy Grossman. “This fraud was costly for the U.S. Navy, and now for this defendant.” Grossman thanked the prosecution team and investigating agencies for their excellent work 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 with the Department of Veterans Affairs Office of Inspector General’s Western Field Office. “Worse yet, this defendant actively recruited others into the scheme to feed his greed for compensation he did not deserve. This guilty plea is a testament to the VA OIG’s commitment to investigating those who would defraud benefit programs administered by VA.”

“The Traumatic Servicemembers Group Life Insurance Program is designed to compensate service members who suffer serious and debilitating injuries while on active duty. Falsely claiming benefits from this program siphons money from deserving beneficiaries and makes medical care more costly for all of us,” said Stacey Moy, Special Agent in Charge of the FBI San Diego Division. “This scheme is particularly egregious given the service members involved deceitfully served themselves for their own financial gain. The FBI will continue to work with our law enforcement partners to ensure those who willingly defraud the American people are held accountable.”

The Traumatic Servicemembers Group Life Insurance (TSGLI) program was administered by Prudential for the Navy and funded by servicemembers and the Department of the Navy. TSGLI provided financial assistance to servicemembers recovering from traumatic injuries.

According to the plea agreement, in addition to submitting his own TSGLI claims based on fake injuries and disabilities, Toups encouraged numerous current or former Navy servicemembers to submit claims and sometimes told them to provide medical records to McGrath. McGrath, a nurse, falsified or doctored medical records to exaggerate or fake injuries. Villarroel certified that he reviewed the records and determined activities of daily living were lost or impaired and consistent with the claimed injuries as required for claims to be processed and qualify, at times supporting the determination by falsely stating he interviewed the claimant. Villarroel also, at times, provided others’ medical records for McGrath to use in fabricating claims.

Toups admitted that he encouraged recipients of claim payments to give him part of the money, sometimes characterizing it as a “processing fee.” McGrath and Villarroel received part of the kickback depending on their involvement in the claim. Toups paid Villarroel in cash and by cashier’s check. At times, Toups and other conspirators conducted financial transactions in amounts under $10,000 to evade perceived financial reporting requirements.

According to court records, some of Toups’ co-defendants were part of the Explosive Ordinance Disposal Expeditionary Support Unit One (“EOD ESU One”), based in Coronado, California. Toups was a Chief Petty Officer Construction Mechanic.

Ronald Olmsted and Anthony Coco, who each entered guilty pleas earlier this year, were previously sentenced by U.S. District Judge Janis L. Sammartino. Olmsted was sentenced to four months in prison followed by four months of home detention to be served as part of three years of supervised release. Coco was sentenced to four months of home detention to be served as part of three years of probation.

According to court records, Toups, Villarroel, and Meyer were at the center of the scheme, and together the conspirators defrauded the TSGLI program of nearly $2 million. Toups, Villarroel, and Meyer received kickbacks for creating and filing the fraudulent TSGLI applications for other U.S. Navy service members.

DEFENDANT           18CR1674-JLS

Christopher Toups      43        Woodstock, GA

RELATED CASES

Kelene Meyer                         18CR1674-JLS                       44                    Jacksonville, FL

Dr. Michael Villarroel            18CR1674-JLS                       48                    Coronado, CA

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

SUMMARY OF CHARGES

Toups:

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

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

Others:

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

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

18 U.S.C. § 1343, Wire Fraud

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

18 U.S.C. § 287, Making a False Claim

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

AGENCIES

Federal Bureau of Investigation

Naval Criminal Investigative Service

Department of Veterans Affairs - Office of Inspector General

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

Assistant U. S. Attorney Seth Askins (619) 546-6692   

NEWS RELEASE SUMMARY – October 26, 2022

SAN DIEGO - Assistant U.S. Attorney Seth Askins will lead the efforts of the U.S. Attorney’s Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election. 

AUSA Askins has been appointed to serve as the District Election Officer (DEO) for the Southern District of California, and in that capacity is responsible for overseeing the district’s handling of Election
Day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

U.S. Attorney Randy Grossman said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election. Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence.  The Department of Justice will always work tirelessly to protect the integrity of the election process.”

The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud.  The Department will address these violations wherever they occur.  The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice.  The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).  

U.S.  Attorney Grossman stated that: “The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise can exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Askins will be on duty in this District while the polls are open.  He can be reached by the public at the following telephone number: (619) 546-6692.”

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The local FBI field office can be reached by the public at (858) 320-1800.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .

U.S. Attorney Grossman said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate.  It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

SAN DIEGO – Samaje Evans was sentenced in federal court today to 72 months in prison for transporting a 17-year-old girl from Arizona to Nevada to San Diego for the purpose of involving her in commercial sex acts. According to his plea agreement, Evans took all the money earned by the minor - about $1,500 a day. Evans also posted commercial sex advertisements for the girl online.

Evans pleaded guilty on February 2, 2022, to one count of Coercion and Enticement.

On April 22, 2021, the San Diego Human Trafficking Task Force (SDHTTF) received an alert from the National Center for Missing and Exploited Children (NCMEC) about a 17-year-old female runaway

believed to be involved in commercial sex in Texas, Arizona, Nevada and San Diego. The NCMEC alert identified a possible sex trafficker and provided social media photographs of that individual.

On April 22, 2021, Task Force Officers from the SDHTTF located the minor and Evans at a San Diego hotel. Evans had checked into the room and was in possession of a card key to the room. A search of the minor’s phone revealed messages from Evans in which he directed her to collect money from sex customers and informed the minor she would have to pay a “fee” for not following the rules. The phone also contained photographs that were used in the commercial sex advertisements. Task Force Officers also located recent videos of Evans and the minor together in the hotel room in San Diego.

“Our office will do everything we can to protect children from being exploited and harmed by sex traffickers,” said U.S. Attorney Randy Grossman. Grossman thanked the prosecution team and the San Diego Human Trafficking Task Force for their excellent work on this case.

“Evans’ exploitation of a minor is reprehensible,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “The FBI will never stop fighting for minors who are victimized by criminals who care more about money than people. We appreciate the collaboration of our partners at the San Diego Human Trafficking Task Force and the National Center for Missing and Exploited Children for working closely with us to ensure justice is served and victims receive all the resources they need.”

DEFENDANT                                               Case Number 22cr01513-CAB

Samaje Evans                                                Age: 27                                    Las Vegas, NV

SUMMARY OF CHARGE

Coercion and Enticement – Title 18, U.S.C., Section 2422(a) Maximum penalty: Life in Prison; $250,000 fine

AGENCY

Federal Bureau of Investigation & The San Diego Human Trafficking Task Force

This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section, which leads 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— The United States Attorney’s Office and Homeland Security Investigations today announced the creation of, and first case brought by, the newly formed Fentanyl Abatement and Suppression Team in partnership with the District Attorney’s Office, U.S. Customs and Border Protection, Drug Enforcement Administration and Federal Bureau of Investigation.

Formed in September 2022, the group known as “FAST” is a multi-agency task force led by Homeland Security Investigations working in conjunction with state and local agencies to target significant fentanyl distributors in San Diego County. FAST’s mission is to identify and disrupt distribution networks in San Diego County that are responsible for fatal and non-fatal overdoses. FAST will support and provide additional resources to build upon the work of the already-existing DEA’s Overdose Response Team (formerly known as Team 10) to ensure that the most significant fentanyl dealers and those who sell deadly doses of fentanyl face prosecution.

Today, federal authorities brought their first FAST prosecution. James Michael Bradford was arraigned before U.S. Magistrate Judge Karen S. Crawford on a single count of distribution of fentanyl. The complaint alleges that Bradford distributed fentanyl resulting in the death of a victim identified in court records as M.R.S.

On October 12, 2022, Carlsbad Police found the victim at a home in Carlsbad. After investigating the scene, law enforcement identified Bradford as M.R.S.’s source of supply, and they arrested Bradford later that day.  Following his arraignment, Bradford was detained. Bradford’s next court date is a Preliminary Hearing set for November 3, 2022.

“FAST is an important step in targeting drug dealers in San Diego County driving our unacceptable number of fatal fentanyl overdoses,” according to U.S. Attorney Randy Grossman. “Together with our state and federal partners, our Office will prosecute those engaging in this deadly trade.”

“By leading this critical task force, HSI’s unwavering commitment to closely work with our law enforcement partners to coordinate, deconflict, and prioritize individuals and criminal organizations responsible for supplying fentanyl that results in overdose deaths remains our priority,” said Chad Plantz, special agent in charge for HSI San Diego. “Opioid deaths in San Diego are becoming all too common; we must address this issue at the root by utilizing all of our law enforcement tools as a united team.”

“The creation of FAST brings collaboration between law enforcement to a new level in the fight against fentanyl overdoses and the ongoing work being done to save lives across San Diego County” said San Diego County District Attorney Summer Stephan. “Addressing the fentanyl overdose epidemic in our community remains a priority for my office through prosecution, prevention and education. FAST leverages the cooperative power of all the agencies involved to put fentanyl suppliers out of business and hold them accountable for the destruction they're causing to families in our region.”

Carlsbad Police Department Assistant Chief Christie Calderwood stated: “I want to thank our detectives involved in this case at the Carlsbad Police Department as they investigate overdose deaths while we navigate the fentanyl crisis affecting our nation. Our department prioritizes educational and investigative efforts, as well as collaborative work like this with our local law enforcement partners, and all the agencies involved in the newly formed FAST team. We appreciate the U.S Attorney’s Office amazing teamwork, while we move forward with an overarching goal of saving lives and arresting those that bring deadly criminal activity into our community.”

“Fentanyl is an incredibly dangerous drug, one that we did not see ten years ago, and one that is incredibly potent in even very small amounts.  Nearly every American community has been impacted by the opioid crisis,” said Anne Maricich, CBP Acting Director of Field Operations in San Diego. “The creation of FAST utilizes multi-agency collaboration with our federal and state law enforcement partners boosting our effectiveness to disrupt the illicit importation of this deadly narcotic. We need to aggressively continue to investigate and bring to justice those who are contributing to this epidemic.”

“San Diego law enforcement will continue to protect our community by targeting dangerous drug dealers driving addiction,” said DEA Special Agent in Charge Shelly Howe.

“Removing fentanyl from our communities and those who distribute it are our top priorities,” said FBI Special Agent in Charge Stacey Moy. “The FBI will continue to partner with our state and local agencies to bring to justice those who endanger public health and safety by propagating this deadly poison.”

DEFENDANT                                               Case Number 22-MJ-3812                                      

Jason Michael Bradford                                 Age: 48                                   San Diego, CA

SUMMARY OF CHARGES

Distribution of Fentanyl – Title 18, United States Code, Section 841(a)(1) & 841(b)(1)(C)

Maximum penalty: Twenty years in prison

AGENCY

Carlsbad Police Department

Drug Enforcement Administration

Enforcement and Removal Operations

Escondido Police Department

Federal Bureau of Investigation

Homeland Security Investigations

Naval Criminal Investigative Service

San Diego County District Attorney’s Office

United States Customs and Border Protection

United States Marshals Service

Assistant U. S. Attorneys Adam Gordon (619) 546-6720

NEWS RELEASE SUMMARY — October 19, 2022

SAN DIEGO— Cole Thomas Salazar was sentenced today by U.S. District Judge Cathy Ann Bencivengo to 120 months for his role in supplying the fatal dose of powdered fentanyl that resulted in the death of 24-year-old Sarah Elizabeth Fuzzell on November 3, 2020. 

According to his plea agreement, Salazar used an online classified ads service to offer controlled substances for sale. After communicating with Fuzzell online, Salazar sold fentanyl to her on November 2, 2020, and she subsequently died from this fentanyl. On January 10, 2021, law enforcement arrested Salazar and found on his person packages of heroin and fentanyl. 

A search of a nearby hotel room turned up numerous quantities of controlled substances including more fentanyl and dealer-related paraphernalia such as scales, baggies and pay-and-owe sheets. The plea agreement stipulates for Salazar that the commission of the offense of distribution of fentanyl resulting in death and/or serious bodily injury applies. The investigation and arrest of Salazar and his co-defendant Valerie Lynn Addison was featured in the HBO “The Crime of the Century.”

Addison is scheduled to be sentenced by Judge Bencivengo on November 16, 2022.

“Our community lost a vibrant, intelligent 24-year-old victim to powdered fentanyl,” said U.S. Attorney Randy Grossman. “We can’t stress enough the danger of powdered fentanyl. If you are a drug dealer who chooses to sell powdered fentanyl – disregarding the extreme risk – our office will prosecute you for any death resulting from your sale.”

“Drug dealers like Mr. Salazar must be held accountable for the rising fentanyl deaths we have seen in San Diego communities,” said DEA Special Agent in Charge Shelly Howe. “Fake pills and powdered fentanyl have no place in San Diego, and we will continue to bring those who sell these drugs to justice.”

“The sentence imposed on the lethal dose of powered fentanyl that resulted in the tragic death of a young person sends a clear message to drug criminal drug dealers,” said Chad Plantz, special agent in charge for HSI San Diego. “There are serious consequences to peddling these dangerous substances. HSI along with our law enforcement partners, will continue to seek out and bring to justice those involved drug overdoses of any kind.”

This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, and the Drug Enforcement Administration to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County. Investigators from the DEA’s Overdose Response Team led the investigation into Fuzzell’s death.

DEFENDANTS                                             Case Number 21cr3518-CAB                                       

Cole Thomas Salazar                          Age: 32                                   San Diego, CA

Valerie Lynn Addison                        Age: 40                                   San Diego, CA

SUMMARY OF CHARGES

Salazar:

Possession with Intent to Distribute (Fentanyl) – Title 18, United States Code, Section 841(a)(1)

Maximum penalty: Twenty years in prison

Addison:

Possession with Intent to Distribute (Fentanyl and Methamphetamine) – Title18, United States Code, Section 841(a)(1)

Maximum penalty: Twenty years in prison

AGENCY

Drug Enforcement Administration

Homeland Security Investigations

Federal Bureau of Investigation

California Department of Health Care Services

San Diego Sheriff’s Department

San Diego Police Department

San Diego County District Attorney’s Office

A Canadian national and former resident of San Diego, California, was sentenced in federal court today to 20 years in prison, followed by 36 months of supervised release, for conspiring with others to provide material support to terrorists engaged in violent activities such as murder, kidnapping and maiming of persons in Syria.

According to court documents, Abdullahi Ahmed Abdullahi, 37, of Edmonton, Alberta, Canada provided both money and personnel to support the violent jihadist activities of the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization. From November 2013 through March 2014, Abdullahi encouraged, aided and financially assisted six North American nationals in traveling to Syria, where they joined ISIS and engaged in armed battles to gain control of the territories and civilian populations within Syria. These six individuals included his three cousins from Edmonton, Canada, an 18-year-old cousin from Minneapolis, as well as San Diego resident Douglas McAuthur McCain.

On Sept. 15, 2017, pursuant to an extradition request by the United States, Canadian authorities arrested Abdullahi. Abdullahi was detained in Canadian custody without bail, pending extradition. On Oct. 24, 2019, Canada extradited Abdullahi to San Diego to face the material support charges in the indictment. Abdullahi pleaded guilty to all charges on Dec. 17, 2021. 

Abdullah admitted that following the departure of those foreign fighters, he also caused money to be wired to third-party ISIS intermediaries in Gaziantep, Turkey, located approximately 40 miles from the Syrian border, for the purpose of continuing to support his coconspirators in violent jihadist activities on the battlefield. All six individuals were subsequently reportedly killed fighting for ISIS.

Abdullahi also admitted that to finance the travel of others to Syria, members of the conspiracy encouraged Abdullahi and others to steal and commit fraud against the “kuffar,” a pejorative term used to describe non-Muslims, claiming that such criminal activity was permissible under Islamic law. Abdullahi admitted that in order to raise funds to support the violent terrorist activities in Syria, he personally committed a violent crime – the Jan. 9, 2014, armed robbery of an Edmonton, Canada, jewelry store. Within weeks after committing that robbery, Abdullahi wired monies to San Diego, totaling approximately $3,100, for the purpose of financing the travel of Douglas and the 18-year old Minneapolis cousin’s travel to Syria to join and fight for ISIS. 

Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Randy Grossman for the Southern District of California, Assistant Director Robert R. Wells of the FBI’s Counterterrorism Division and Special Agent in Charge Stacey Moy of the FBI San Diego Field Office made the announcement.

The FBI, San Diego Joint Terrorism Task Force, the Federal Air Marshal Service, the Department of Homeland Security’s Homeland Security Investigations (HSI), U.S. Border Patrol and U.S. Customs and Border Protection Office of Field Operations investigated the case. The Department of Justice’s Office of International Affairs and Canadian law enforcement partners, including the Royal Canadian Mounted Police; Edmonton Police Services; the Alberta Crown Prosecution Service; the Public Prosecution Service of Canada; and the Canada Crown Prosecutor’s Office, were instrumental in the United States’ efforts to prosecute Abdullahi and combat international terrorism.

Assistant U.S. Attorneys Shane Harrigan and Fred Sheppard for the Southern District of California prosecuted the case with valuable assistance provided by Trial Attorney Andrew Sigler of the National Security Division’s Counterterrorism Section.

Assistant U. S. Attorney Shane Harrigan (619) 546-6981 and Fred Sheppard (619) 546-8237

NEWS RELEASE SUMMARY – October 17, 2022

SAN DIEGO – Abdullahi Ahmed Abdullahi, a Canadian national and former resident of San Diego, was sentenced in federal court today to 20 years in prison for conspiring with others to provide material support to terrorists engaged in violent activities such as murder, kidnapping and maiming of persons in Syria.

“Today we have delivered justice to a man who directly funded violent acts of terrorism,” said U.S. Attorney Randy Grossman. “Our most important job is protecting Americans from terrorists. The case against Abdullahi has done just that.”

“Protecting the American people from terrorism—both international and domestic—remains the FBI’s number one priority,” said FBI Special Agent in Charge Stacey Moy. “Abdullahi committed violent, unlawful acts to obtain money, then used that money to support the murder, torture, and extreme violence that ISIS represents. The FBI will continue to investigate all who support terrorist organizations, whether it be financially or through other means.”

According to the government’s sentencing memorandum and Abdullahi’s plea agreement, Abdullahi provided both money and personnel to support the violent jihadist activities of the Islamic State of Iraq and Syria (ISIS), a foreign terrorist organization. From November 2013 through March 2014, Abdullahi encouraged, aided and financially assisted six North American nationals in traveling to Syria where they joined the Islamic State of Iraq and Syria (ISIS) and engaged in armed battles to gain control of the territories and civilian populations within Syria. These six individuals included his three cousins from Edmonton, Canada, an 18-year-old cousin from Minneapolis, as well as San Diego resident Douglas McAuthur McCain.

On September 15, 2017, pursuant to an extradition request by the United States, Canadian authorities arrested Abdullahi. Abdullahi was detained in Canadian custody without bail, pending extradition.  On October 24, 2019, Canada extradited Abdullahi to San Diego to face the material support charges in the indictment and pleaded guilty to all charges on December 17, 2021. 

Abdullah admitted that following the departure of those foreign fighters, he also caused money to be wired to third-party ISIS intermediaries in Gaziantep, Turkey (located approximately 40 miles from the Syrian border) for the purpose of continuing to support his coconspirators in violent jihadist activities on the battlefield. All six individuals were subsequently reportedly killed fighting for ISIS.

Abdullahi also admitted that in order to finance the travel of others to Syria, members of the conspiracy encouraged Abdullahi and others to steal and commit fraud against the “kuffar” (a pejorative term used to describe non-Muslims), claiming that such criminal activity was permissible under Islamic law. Abdullahi admitted that in order to raise funds to support the violent terrorist activities in Syria, he personally committed a violent crime – the January 9, 2014, armed robbery of an Edmonton, Canada, jewelry store.  Within weeks after committing that robbery, Abdullahi wired monies to San Diego, totaling approximately $3,100, for the purpose of financing the travel of Douglas and the 18-year old Minneapolis cousin’s travel to Syria to join and fight for ISIS. 

Douglas, a former San Diego resident, is the first known American to die fighting for ISIS. He departed from San Diego in March 2014, and on or about August 25, 2014, he was reportedly killed fighting for ISIS against Free Syrian Army forces. Douglas’ brother, Marchello McCain, was previously convicted in San Diego federal court and sentenced to 10 years in custody for illegal possession of a cache of firearms and providing false statements to FBI agents regarding his knowledge of the conspiracy, including the involvement of Abdullahi. 

During the course of the conspiracy, Abdullahi and his coconspirators created and used email accounts so that foreign fighters, facilitators and recruits could communicate and avoid law enforcement detection.  Abdullahi and his coconspirators used these draft emails to recruit others to travel to Syria and join ISIS, coordinate their travel from North America to Syria, communicate regarding the financial and other resource needs of the ISIS foreign fighters, and relay information regarding ISIS’ armed efforts to establish a Caliphate in Syria. 

Grossman thanked the prosecution team as well as FBI San Diego and the federal, state and local law enforcement partners at the San Diego Joint Terrorism Task Force for their hard work and dedication to the multi-year, complex investigation that led to today’s sentencing. Grossman also expressed gratitude for the assistance of the Department of Justice’s Office of International Affairs and Canadian law enforcement partners, including the Royal Canadian Mounted Police; Edmonton Police Services; the Alberta Crown Prosecution Service; the Public Prosecution Service of Canada; and the Canada Crown Prosecutor’s Office, all of whom have been instrumental in the United States’ efforts to prosecute Abdullahi and combat international terrorism.           

DEFENDANT                                               Criminal Case No. 17CR0622-W

Abdullahi Ahmed Abdullahi                          Age 37             Edmonton, Alberta, Canada  

SUMMARY OF CHARGES

Conspiracy to Provide Material Support to Terrorists – Title 18, U.S.C., Sections 2339A(a)

Maximum penalty: Fifteen years in prison and $250,000 fine (per count)

Providing Material Support to Terrorists – Title 18, U.S.C., Sections 2339A(a)

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

INVESTIGATING AGENCIES

San Diego Joint Terrorism Task Force

Federal Bureau of Investigation

Federal Air Marshal Service

Department of Homeland Security, Homeland Security Investigations

Department of Homeland Security, U.S. Border Patrol

U.S. Customs and Border Protection Office of Field Operations

SAN DIEGO – Carlos Martin Quintana-Arias of Mexico was sentenced in federal court today to 108 months in prison in connection with the record-breaking seizure of 17,584 pounds of methamphetamine and 388.93 pounds of fentanyl from a commercial trailer attempting to enter the United States at the Otay Mesa Port of Entry.

The seizure, on November 18, 2021, was the nation’s largest in each drug category for the calendar years 2021 and 2022 so far, according to U.S. Customs and Border Protection.

According to his plea agreement, Quintana-Arias admitted to driving the drug-laden tractor trailer into the United States through the Otay Mesa Port of Entry. He acknowledged that he knew the tractor trailer contained methamphetamine, fentanyl or some other federally controlled substance.

“This massive seizure prevented a huge quantity of deadly drugs from saturating our community,” said U.S. Attorney Randy Grossman. “Because of the vigilance of border officials, this fentanyl did not kill anyone, and this meth did not destroy even one life. We will continue to work with dedication and passion to intercept these drugs and prosecute the traffickers, because drug seizures mean lives are saved.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“This was a brazen attempt to smuggle a record amount of deadly narcotics into our country, and as this sentencing reflects, those persons looking to make a quick profit from narcotics smuggling will be vigorously investigated and prosecuted,” said Chad Plantz, special agent in charge, HSI San Diego. “HSI, along with our federal and local partners, is firmly committed to dismantling criminal organizations who blatantly ignore the laws of this nation.”

“The San Diego and Imperial Valley ports of entry account for approximately 61 percent of all the fentanyl CBP seizes nationwide,” stated Acting Director of Field Operations for the San Diego Field Office Anne Maricich. “This significant seizure exemplifies the hard work and dedication our officers have to the mission. It is our steadfast commitment to keeping dangerous narcotics like fentanyl and methamphetamine off the streets and out of our communities. The sentencing announced today by Judge Janis L. Sammartino is a result of strong multiagency cooperation and local departments working towards a common goal.”

Carlos Martin Quintana-Arias                        Residence: Mexico

Title 21, U.S.C., Sections 952 and 960 Importation of a Controlled Substance

Maximum penalty: Forty years in prison and a mandatory minimum of five years; and $5 million fine

Homeland Security Investigations

U.S. Customs and Border Protection

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

Assistant U. S. Attorney Daniel E. Zipp (619) 546-8463

NEWS RELEASE SUMMARY – October 7, 2022

SAN DIEGO – Juan Manuel Alvarez-Inzunza, a high-level money launderer for the Sinaloa Cartel, was sentenced to 188 months in prison today for his role in a conspiracy to transfer millions of dollars in drug proceeds out of the United States.

According to court records, starting in 2013, agents with Homeland Security Investigations intercepted the communications of Alvarez-Inzunza and other high-level Sinaloa Cartel members as they discussed the transfer of drug proceeds. Alvarez-Inzunza, who had a law degree and worked as an attorney in Culiacan, Sinaloa, Mexico, regularly received requests originating from the top leadership of the cartel—including Ismael “El Mayo” Zambada and Joaquin “Chapo” Guzman—to arrange for the collection of drug proceeds in cities across the United States including New York, Boston, Chicago, and Detroit.  Alvarez-Inzunza then worked with associates in Bogota, Colombia to arrange for the transfer of those funds to Mexico, Central America, and other locations.

Using information from wire intercepts, agents were able to seize over $4 million in bulk currency drug proceeds before they could leave the country, and intercepts showed Alvarez-Inzunza orchestrating the transfer of millions more on behalf of the cartel. Alvarez-Inzunza was arrested by Mexican authorities while traveling in the state of Oaxaca in March of 2016, and he was extradited to the United States last year. On May 3, 2022, He pleaded guilty to one count of conspiracy to launder monetary instruments in violation of 18 U.S.C. §1956(h).

In court today, Chief Judge Dana M. Sabraw noted that the Sinaloa cartel is “a very violent organization” and “they don’t exist without money.” Money laundering operations, like that headed by Alvarez-Inzunza, are “integral” to the operation of the cartel and provide the “fuel that keeps these organizations in business.”

U.S. Attorney Randy Grossman said, “Large-scale drug cartels in Mexico can only survive by manipulating the international financial system to transfer the proceeds of their drug sales out of the United States.  Today’s sentence sends a message to global money launderers that they are not safe, wherever they may reside, and we will continue to work with our international partiers to bring them to justice.”  Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“Today’s sentencing is the result of relentless work by HSI targeting the Sinaloa Cartel,” said Chad Plantz, special agent in charge of HSI Diego. “This multiyear investigation highlights HSI’s unwavering commitment to pursue cartel members responsible for importing dangerous drugs into our neighborhoods. This lengthy sentence serves as resounding message that transnational criminal organizations are being continuously investigated by HSI and their leaders will be brought to justice.”

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.

DEFENDANT                                               Case Number 14CR2253-DMS                               

Juan Manuel Alvarez-Inzunza                        Age: 41                                   Culiacan, Sinaloa, Mexico

SUMMARY OF CHARGES

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

AGENCIES

Homeland Security Investigations

Department of Treasury, Office of Foreign Assets Control

Department of Justice, Organized Crime Drug Enforcement Task Forces

Department of Justice, Office of International Affairs

Assistant U. S. Attorney Joseph Green (619) 546-6955

NEWS RELEASE SUMMARY – October 6, 2022

SAN DIEGO – Tijuana resident Alexis Castillo Padilla pleaded guilty in federal court today to criminal charges stemming from his scheme to defraud interstate carriers and brokers operating in the trucking industry.

According to his plea agreement, Padilla conducted what is known as a “double-broker” scheme. As a part of the scheme, Padilla stole the identity of a Spring Valley interstate carrier and agreed to make deliveries using the company’s stolen identity. Then, rather than delivering the loads, Padilla posed as a shipper and re-brokered the same loads to other carriers who delivered the freight. Padilla then collected the payments for the completed deliveries but did not pay the carriers who actually delivered the loads and were unaware that Padilla was running a double-broker scheme. Padilla orchestrated most of the scheme from Tijuana, Mexico.

Padilla pleaded guilty to these charges following his extradition to the United States from Italy. Padilla was arrested in Italy and extradited to the United States on May 27, 2022. As a part of his plea agreement, Padilla has agreed to pay restitution to his victims, estimated to be at least $239,904.

“Padilla used deceit and deception to defraud freight brokers and interstate carriers trying to make an honest living moving goods throughout the United States,” said U.S. Attorney Randy Grossman. “He will now be held to account for his crimes even though they were committed from outside the United States.” Grossman commended the prosecution team as well as the Department of Transportation, Office of Inspector General agents for investigating and prosecuting this case.”

“Today’s guilty plea demonstrates our commitment to detecting and pursuing those who engage in egregious acts of fraud that negatively affect both businesses and consumers,” said Andrea M. Kropf, Special Agent-In-Charge, Department of Transportation Office of Inspector General, Midwestern Region. “We are proud of our work with our prosecutorial partners in putting an end to this very complex ‘double-broker’ scheme.”

Padilla is scheduled to be sentenced by U.S. District Judge John A. Houston on December 7, 2022, at 10:00 a.m. before U.S. District Judge John A. Houston.

DEFENDANT                                               Case Number 19CR1611-JAH                                 

Alexis Castillo Padilla                                    Age     45                            Tijuana, Mexico

SUMMARY OF CHARGES

Counts 1-4: Wire Fraud, 18 U.S.C. § 1343

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

INVESTIGATING AGENCY

Department of Transportation, Office of Inspector General

Assistant U. S. Attorney Mario Peia (619) 546-9706

NEWS RELEASE SUMMARY – October 6, 2022

SAN DIEGO – Adde Munin Adde, the owner of a telecommunications store in San Diego County, pleaded guilty today in federal court, admitting that he received stolen electronic devices such as cell phones and tablets that were unlawfully obtained through robbery.

Adde pleaded guilty before U.S. Magistrate Judge Michael S. Berg to three counts of Interstate Transportation of Stolen Property. As part of his plea, Adde also agreed to pay restitution in the amount of $59,740.55.

This conviction is the culmination of an investigation coordinated between the Federal Bureau of Investigation, National City Police Department, San Diego Sheriff’s Department, and San Diego Police Department, against those who committed 11 robberies and attempted robberies between January 14, 2020, and February 1, 2020.

The robbers targeted telecommunication stores such as Verizon, Sprint, and T-Mobile, and used what appeared to be firearms to violently demand cell phones, tablets, and electronic devices. The firearms were later determined to be BB guns. Altogether, six defendants have been convicted for the robberies: Jose Carlos Gutierrez-Zielinski, Marqwell Green, Jose Manuel Garcia, Lavonte Green, Keon Glover, and Kameron Moore. Five of the defendants have been sentenced to multi-year terms.

“Owners of pawn shops and those who sell cell phones, jewelry, and other commonly-stolen items should take notice of this conviction,” said U.S. Attorney Randy Grossman. “When you buy stolen merchandise, you create a market for those who obtain the merchandise through violent means. As part of our fight against violent crime, we will prosecute you, along with those who commit the violent crimes, to the fullest extent permitted by law,” Grossman thanked the prosecution team and the investigating agencies for their excellent work on this case.

“The FBI remains fully committed to investigating not only those who steal from local businesses, but also those who knowingly purchase stolen items,” said Special Agent in Charge Stacey Moy of the FBI's San Diego Field Office. “I want to thank the National City Police Department, the San Diego Sheriff’s Department, the San Diego Police Department, and the United States Attorney’s Office for the Southern District of California for their commitment and partnership in holding all parties accountable.”

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.

Adde is scheduled to be sentenced on January 23, 2023, at 9:00 a.m. before U.S. District Court Judge William Q. Hayes.

DEFENDANTS                                             CASE NUMBERS                            

Adde Munin Adde                                          22-cr-0972-WQH                  

Jose Carlos Gutierrez-Zielinski                      20-cr-1565-WQH

Marqwell Green                                              20-cr-1565-WQH

Jose Manuel Garcia                                        20-cr-1565-WQH

Lavonte Green                                                20-cr-1565-WQH

Keon Glover                                                   20-cr-1565-WQH

Kameron Moore                                              20-cr-1565-WQH

SUMMARY OF CHARGES

Interstate Transportation of Stolen Property – Title 18, U.S.C., Section 2314

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

Conspiracy to Commit Hobbs Act Robbery, Hobbs Act Robbery, and Attempted Hobbs Act Robbery – Title 18, U.S.C., Section 1951

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

AGENCIES

Federal Bureau of Investigation

San Diego Police Department

San Diego Sheriff’s Department

National City Police Department

Assistant U. S. Attorney Kyle Martin (619) 546-7726    

NEWS RELEASE SUMMARY – October 5, 2022

SAN DIEGO – Victor Hugo Anez Vaca Diez, aka Chi Chi, alleged leader of a large-scale transnational criminal organization, was arraigned in federal court yesterday following his extradition to the United States from Argentina.

On August 18, 2017, a federal grand jury sitting in the Southern District of California returned a superseding indictment charging Anez Vaca with conspiracy to distribute cocaine with the intent for that cocaine to be imported into the United States, conspiracy to distribute cocaine and methamphetamine, and conspiracy to launder monetary instruments.

Anez Vaca, a Bolivian citizen, was arrested at the Buenos Aires, Argentina airport in January 2022, at the request of the United States, on a Red Notice issued by the International Criminal Police Organization (INTERPOL). Since his arrest, Anez Vaca has remained in custody pending extradition to the United States. He was flown by the United States Marshals Service from Buenos Aires to San Diego on October 3, 2022 and arraigned the following day before U.S. Magistrate Judge Daniel E. Butcher.

“Today is a reminder that international drug traffickers who profit by shipping narcotics into our community are not safe from prosecution,” said U.S. Attorney Randy Grossman. “We will work with our international partners to bring them to justice wherever they may travel.” Grossman thanked the prosecution team, Homeland Security Investigations, the Drug Enforcement Administration and the U.S. Department of Justice’s Office of Enforcement Operations for their excellent work on this case. He also thanked INTERPOL, the Government of Argentina and the Justice Department’s Office of International Affairs for their assistance in securing the arrest and extradition of Anez Vaca.

“The extradition of Anez Vaca Diez to the United States is a perfect example of Homeland Security Investigations broad reach and successful partnerships fostered with our international colleagues,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “This extradition should send a clear message to those who believe they can evade law enforcement. We will find you and work to bring you to the U.S. to face justice.”

“The DEA continues to work with our law enforcement partners to stem the flow of illegal drugs coming into the United States,” said DEA Special Agent in Charge Shelly Howe.  “The extradition of Anez Vaca is evidence that by working together we can make our communities safer and bring high-level international traffickers to justice in the United States.”

This case is also the result of the 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. 

DEFENDANTS                                             Case Number 18CR0680-JAH                                

Victor Hugo Anez Vaca Diez, aka Chi Chi               

SUMMARY OF CHARGES

International Drug Trafficking Conspiracy – Title 21, U.S.C., Sections 959, 963

Mandatory Minimum 10 years’ imprisonment; maximum life imprisonment and $10 million fine

Conspiracy to Distribute Cocaine and Methamphetamine – Title 21, U.S.C., Sections 841, 846

Mandatory Minimum 10 years’ imprisonment; maximum life imprisonment and $10 million fine

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

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

AGENCY

Homeland Security Investigations

Drug Enforcement Administration

*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 Oleksandra Johnson (619) 546-9769

NEWS RELEASE SUMMARY – October 4, 2022

San Diego, CA – The Justice Department announced today the results of its efforts over the past year to protect older adults from fraud and exploitation.

The Department and its law enforcement partners tackled matters that ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims. Today, the Department also announced it is expanding its Transnational Elder Fraud Strike Force to amplify efforts to combat scams originating overseas.

 “We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”

“The Southern District of California is proud to take part in the Justice Department’s efforts to combat elder fraud by joining the expanded Transnational Elder Fraud Strike Force,” said U.S. Attorney Randy Grossman. “Our office is committed to investigating elder fraud and bringing to justice those who target seniors.”  

During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged.

This past year, the Southern District of California successfully pursued cases affecting seniors in our district and nationwide. With the help of Consumer Protection Branch and the San Diego Elder Justice Task Force, our office indicted and is prosecuting United States v. Knowles et al., 21cr2216-CAB, a nationwide Racketeer Influenced and Corrupt Organizations Act (“RICO”) conspiracy involving a “grandparent scam” where elderly victims were convinced, over the phone, that their loved ones were in jail and needed money to cover bail.

These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member.  The criminals engaged in extortion and fraud to swindle about $2 million from more than 70 victims across the nation. Ten elderly victims who resided in San Diego County lost over $300,000 to the fraud.  Of the eight charged individuals, six have been arrested and pleaded guilty.  Three of the convicted defendants were sentenced to 108 months, 46 months, and 24 months in prison for their roles in the criminal enterprise.  In sentencing one of the defendants, the federal judge described the scheme as “heartbreakingly evil.”  Three remaining defendants are set to be sentenced on November 17, 2022. 

In another case prosecuted by our office, United States v. Phimmasone, 21cr3262-LL, the defendant admitted to embezzling over $350,000 from a local company that provided in-home care services for mostly elderly individuals.  The sentencing hearing is set for November 14, 2022. 

But prevention is just as important as prosecution. We continually reach out to community groups and stakeholders to raise awareness of red flags and increase reporting of suspicious behavior. In October 2021, our office conducted virtual training on common elder scams and fraud against seniors for residents of the White Sands La Jolla Senior Living Community.  In August 2022, we presented information about recent fraudulent schemes and preventing victimization at the Senior Wellness Community Event held at One Safe Place, The North County Family Justice Center.

The Department also highlighted three other efforts: expansion of the Transnational Elder Fraud Task Force, success in returning money to victims and efforts to combat grandparent scams. 

The Department announced that as part of its continuing efforts to protect older adults and bring perpetrators of fraud schemes to justice it is expanding the Transnational Elder Fraud Strike Force, adding 14 new U.S. Attorney’s Offices. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat largest and most harmful fraud schemes that target or disproportionately impact older adults.

In the past year, the Department has notified over 550,000 people that they may be eligible for remission payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.

Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833-FRAUD-11 or 833-372-8311.

This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. [ET]. English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.

Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Assistant U. S. Attorneys Peter S. Horn (619) 546-6795 and Aaron P. Arnzen (619) 546-8384

NEWS RELEASE SUMMARY – October 4, 2022

SAN DIEGO – Richard Lee Ramirez is charged in a federal grand jury indictment with securities fraud and money laundering.

According to the indictment unsealed yesterday, Ramirez ran a fraudulent investment scheme with his company JMJ Capital Group (“JMJ”) and obtained at least $8 million from investors since 2018. The indictment alleges he used investors’ money for personal expenses and to make Ponzi-style payments to other investors, rather than advancing JMJ’s purported business and investment opportunities.

According to the indictment and statements made in court, Ramirez solicited investments in JMJ from dozens of people by falsely telling them JMJ purchased and resold personal protective equipment (PPE), factored accounts receivable, imported and sold furniture, and, among other things, contracted with a cruise line to refurbish ships’ air-conditioning units. Ramirez promised investors returns of approximately 10 to 14 percent within 90 days and 20 to 30 percent within one month, which purportedly would be generated by JMJ’s business opportunities. Ramirez misrepresented to investors that they could withdraw their money at any time. Also, as alleged in the indictment, he sent investors funding agreements and account statements that furthered his fraud by falsely representing returns and the value of investments with JMJ.

According to the indictment, instead of using investors’ money as he said he would, Ramirez used it to pay for luxury cars, travel, potential real-estate transactions, and other personal expenses, and to pay different investors who tried to redeem their investments and returns. Through his fraudulent scheme, according to the indictment and statements in court, Ramirez caused JMJ’s investors to lose money and ultimately stole at least $5 million of the $8 million or more he received from them.

Ramirez, a resident of North San Diego County, was arrested near Mira Mesa on Friday afternoon.

“The U.S. Attorney’s Office is committed to achieving justice for victims of financial fraud,” said U.S. Attorney Randy Grossman. Grossman also cautioned investors to perform their own due diligence and warned the public about business pitches and returns that “seem too good to be true.” Grossman thanked the prosecution team, the FBI and Securities and Exchange Commission for their excellent work on this case.

“Ramirez gained the trust of his clients and allegedly used that trust to fund a life of luxury for himself by taking the hard-earned money of his investors,” said Stacey Moy, Special Agent in Charge of the FBI San Diego Field Office. “The FBI remains committed to pursuing justice for all victims of fraud.”

The United States Attorney’s Office recognizes and appreciates the assistance of the Securities and Exchange Commission on this matter.

The next hearing in Ramirez’s criminal case is scheduled for November 7, 2022, at 2 p.m., before U.S. District Judge Cynthia A. Bashant.

DEFENDANT                                               Case Number 22-CR-2264-BAS                              

Richard Lee Ramirez                                      Age:    53                                            Carlsbad, CA

SUMMARY OF CHARGES

Securities Fraud – Title 18, U.S.C., Sections 78j(b), 78ff, and Title 17, C.F.R., Section 240.10b-5

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

Criminal Forfeiture – Title 18, U.S.C., Sections 981(a)(1)(C), 982(a)(1), 982(b), and Title 28, U.S.C., Section 2461(c)

Maximum penalty: Twenty years in prison and $5 million fine

AGENCIES

Federal Bureau of Investigations

Securities and Exchange Commission

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

Assistant U. S. Attorneys Owen Roth and J’me K. Forrest

NEWS RELEASE SUMMARY—September 28, 2022

SAN DIEGO— A jury convicted Nameer Mohammad Atta yesterday in federal court of distributing the fentanyl that led to the fatal overdose of an active-duty lance corporal in the United States Marine Corps on May 21, 2020.

According to evidence presented at trial, Atta sold counterfeit “M30” pills in April and May 2020 to the Marine, identified in court records as C.M.R., knowing that these pills are counterfeit oxycodone pills that contain illicit fentanyl. Atta used social media to market and arrange sales of these pills, referring to them as the “most trusted” in San Diego, and in text messages as the “most trusted” and “most potent” in the area. Atta referred to these pills as “M30s,” “Percs” and “Perc30s,” nicknames for fentanyl-laced pills. Atta’s final sale to C.M.R. occurred on May 20, 2020. C.M.R. died from an overdose the next day.

“This verdict again demonstrates the resolve of this office to hold to account those whose callous actions result in overdose deaths,” said U.S. Attorney Randy Grossman. “Fentanyl kills indiscriminately, and tragically here it took the life of a Marine. We will continue to seek justice on behalf of victims.” Grossman thanked the prosecution team and investigators of the Naval Criminal Investigative Service for their efforts leading the investigation that led to the verdict, as well as the Drug Enforcement Administration and Homeland Security Investigations for their invaluable support.

“The illicit distribution and use of fentanyl in the United States poses a critical threat to our local communities, our nation’s service members, and ultimately our national security,” said Special Agent in Charge Todd Battaglia of the NCIS Marine West Field Office. “NCIS extends gratitude to our law enforcement partners and the U.S. Attorney’s Office for their efforts to bring Mr. Atta to justice for his role in the death of a U.S. Marine. We will continue to work aggressively with our partners to eliminate this threat to the Department of the Navy.”

“Once again, we’ve seen a life cut short by fentanyl in fake pills. DEA and its Overdose Response Team will continue to pursue the dealers and manufacturers who sell this poison,” said Special Agent in Charge Shelly Howe. “The only safe pill is one that comes from your doctor or a legitimate pharmacy.”  

“This conviction is the result of painstaking work carried out by brave law enforcement officers in an effort to continue to keep these dangerous and deadly drugs out of our communities,” said Chad Plantz, special agent in charge for HSI San Diego. “HSI, alongside our partners, will continue to identify and investigate those who seek to introduce lethal drugs into our communities.”

Atta is scheduled to be sentenced on February 10, 2023, before U.S. District Court Judge Todd W. Robinson.

DEFENDANT                                   Case Number 21CR1289                

Nameer Mohammad Atta                   Age: 22           San Diego, CA

SUMMARY OF CHARGES

Distribution of Fentanyl Resulting in Death – Title 21, U.S. Code, Sections 841(a)(1) & (b)(1)(C)

Maximum Penalty: Life in prison, with mandatory minimum 20 years in custody

AGENCIES

Naval Criminal Investigative Service

Drug Enforcement Administration

Homeland Security Investigations

Assistant U. S. Attorney Rebecca S. Kanter (619) 546-7304    

NEWS RELEASE SUMMARY – September 23, 2022

SAN DIEGO – A former Department of Homeland Security officer and President of American Federation of Government Employees Local 2805 has been indicted by a federal grand jury for wire fraud and making false statements stemming from his alleged embezzlement of tens of thousands of dollars of union funds from Local 2805.

Felix Luciano was an Enforcement Removal Officer for Immigration and Customs Enforcement. From approximately 2011 through December 2018, Luciano served as the President of Local 2805, a labor union which represents DHS-ICE employees in San Diego and Imperial Counties. Among his legal duties were maintaining the fiscal integrity of the organization, which prohibited him from engaging in business or financial interest that conflicted with his duty to Local 2805 and its members.

The indictment alleges that Luciano embezzled union funds for his own benefit between December 2013 and continuing into January 7, 2019. Luciano retired in December 2018 in the course of an audit of Local 2805 by the Department of Labor’s Office of Labor-Management Standards (OLMS). Luciano is alleged to have used Local 2805’s union dues to enrich himself and pay for personal expenses for himself  and his spouse. Some of those expenses included luxury travel, payments to his personal credit card, payments to support his wife’s business (such as paying for the business’ website design), purchase of a custom gun safe storage, retail purchases, dining, and groceries.

The indictment alleges that Luciano carried out this scheme to defraud Local 2805 by using its debit and credit card to pay his personal expenses and by writing checks to himself from the Local’s checking account with false descriptions such as “per diem” in the memo line.

In order to conceal and obscure his embezzlement, Luciano fraudulently reported false information on Local 2805’s annual financial reports. Labor organizations are required to file financial reports with the OLMS annually. On behalf of Local 2805, Luciano prepared, signed - under penalty of perjury - and filed the financial reports (known as Form LM-3s) with false information that disguised the nature, volume, frequency and purpose of the unauthorized checks and other personal transactions. For example, on the 2017 financial report, he falsely reported that Local 2805 only disbursed $3,068 to him (directly or indirectly), when in fact the correct figure was over $20,000.

In doing so, Luciano hid the embezzlement from the Department of Labor, his fellow union officers, as well as the union membership whose dues were the source of the embezzled funds.

“When employees pay their hard-earned money into labor unions, they reasonably expect the officers of those organizations to be honest stewards of their dues,” said U.S. Attorney Randy Grossman “Our office will work diligently to pursue justice against offenders who have allegedly stolen from their own unions at the expense of members.” Grossman thanked the prosecution team and investigating agencies for their excellent work.

“The Office of Labor-Management Standards will always work hard to expose and bring to justice any official who chooses to break the law and the faith of their union members by stealing,” said Ed Oquendo, District Director, Los Angeles District Office, U.S. Department of Labor, Office of Labor-Management Standards.

Postal Inspector in Charge of the Los Angeles Division Carroll N. Harris said, “When a public official misuses the U.S. Mail for personal gain, Postal Inspectors will aggressively pursue that official to restore the public’s confidence in the mail.”

An important mission of the Office of Inspector General is to investigate allegations of fraud related to union corruption. We will continue to work with our law enforcement partners to investigate these types of allegations,” said Quentin Heiden, Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor Office of Inspector General.

Luciano was arraigned on the indictment by U.S. Magistrate Judge Michael Berg and entered a plea of not guilty. Judge Berg set Luciano’s bond at $30,000 and ordered him to appear before U.S. District Court Judge Thomas Whelan on October 3, 2022, 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.

DEFENDANTS                                 Case Number 22CR2201-W                        

Felix Luciano                                      Age: 60                       San Diego, CA

SUMMARY OF CHARGES

False Statements – Title 18, U.S.C., Section 1001

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

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

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

AGENCY

Department of Labor – Office of Labor-Management Standards

Department of Labor – Office of Inspector General

Homeland Security Investigations – Office of Inspector General

United States Postal Inspector

Assistant U. S. Attorney Adam Gordon (619) 546-6720

NEWS RELEASE SUMMARY—September 23, 2022

SAN DIEGO - Anthony Souza of Ocean Beach was sentenced in federal court today to 150 months for conspiracy to distribute 400 grams and more of fentanyl. Souza’s distribution of fentanyl resulted in the fatal overdose of 28-year-old Chad Stevens, also of Ocean Beach.

According to his plea agreement, Souza admitted that he provided four counterfeit M-30 pills laced with fentanyl, commonly referred to as “blues,” to Stevens, on November 21, 2019. These pills caused Stevens to have a near-fatal overdose. Then approximately six months later, Souza again sold counterfeit “blues” to Stevens – this time with fatal results.

According to admissions in his plea agreement, Souza continued to sell “blues” despite the Stevens’ death, and on June 24, 2020, law enforcement conducted a search warrant of Souza’s residence. During the search, law enforcement seized $2,460 in U.S. currency, 115 grams of cocaine, and 183 counterfeit “blues,” and arrested Souza’s co-defendant, Alyson Marie Vaccacio. Vaccacio pleaded guilty to conspiracy to distribute 40 grams and more of fentanyl and 500 grams and more of cocaine, and her sentencing date is December 5, 2022.

Before pronouncing the sentence, U.S. District Judge Gonzalo P. Curiel said: “Drugs are often described as a poison, and, as we all know, poison kills, and that's what drugs do. They kill dreams, aspirations, goals, humanity, empathy. Drugs kill the ability to experience true joy, to make sound decisions. Drugs break up marriages. They break up families. And in this case, you have what can only be described as heartbreaking circumstances, that parents have had to bury not just one but two children as a result of fentanyl. And sometimes drugs kill people instantly. Most of the time, we have seen cases where drugs kill you a little bit at a time, where they destroy everything good about your life, eventually shorten your life, either by way of your health or resulting in violence. But in this instance, we have the death of Chad Stevens that occurred, essentially, in an instant. And so, ultimately, every drug dealer is responsible for death, either a slow-motion death, over the course of time, or the instant death of Chad Stevens.”

He later added: “The word needs to get out. The message needs to be clear that individuals who partake in the distribution of drugs -- and, particularly, this deadly drug, fentanyl … will receive a sentence in excess of 10 years. There has to be that message that is delivered loud and clear.”

“The days of recreational drug use need to be over,” said U.S. Attorney Randy Grossman. “We know from the DEA’s analysis of seized pills that more than 40 percent of counterfeit pills contain a deadly amount of fentanyl. We can’t say it enough. With fentanyl there is no such thing as a ‘safe’ recreational drug.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“Removing fake pills from our communities and those who distribute them are our top priorities,” said DEA Special Agent in Charge Shelly S. Howe. “San Diego is a safer place with Mr. Souza behind bars. We will continue to pursue those who are selling fake pills and contributing to the unprecedented number of overdoses and poisonings.”

“As law enforcement officers, there is nothing more painful than investigating a death that could have been prevented. While we all can do our part in removing these illegal and lethal drugs from the streets, the public can only benefit if we also do our part in educating to prevent additional overdose deaths,” said Chad Plantz, special agent in charge for HSI San Diego. “I am extremely proud of our HSI agents, working with our law enforcement partners, for the results of this investigation that will undoubtably make our neighborhoods safer.”

Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation into Steven’s death. This case is the result of ongoing efforts by the U.S. Attorney’s Office, the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the San Diego Police Department, and the California Department of Health Care Services to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County.

DEFENDANT                                               Case Number 21-CR-1537 GPC                                          

Anthony Souza                       Age: 46                       San Diego, CA

Alyson Marie Vaccacio          Age: 32                       San Diego, CA

SUMMARY OF CHARGES

Conspiracy to Distribute 400 Grams and More of Fentanyl – Title 21, United States Code, Sections 841(a) and (b)(1)(C)

Maximum Penalty: Life in prison, with mandatory minimum of 10 years

Conspiracy to Distribute 40 Grams and More of Fentanyl – Title 21, United States Code, Sections 841(a) and (b)(1)(C)

Maximum Penalty: Forty years in prison, with five-year mandatory minimum.

AGENCY

Drug Enforcement Administration

Homeland Security Investigations

Federal Bureau of Investigation

San Diego Police Department

California Department of Health Care Services

TUCSON, Arizona – Jesus Rosario Favela-Astorga was sentenced in federal court today to 50 years in prison for the murder of United States Border Patrol Agent Brian Terry on December 14, 2010. Favela-Astorga pleaded guilty to Agent Terry’s murder in April 2022. He is the seventh and final defendant to be convicted and sentenced in this case.

“Today is for Brian Terry, and his loved ones and colleagues who waited eleven years to see justice come to all who were involved in his tragic murder,” said U.S. Attorney Randy S. Grossman of the Southern District of California. “We hope it fulfills the promise to everyone who protects us. We’ll relentlessly pursue justice against those who do them harm for as long as it takes.” Grossman thanked the prosecution team, the FBI and the U.S. Border Patrol for their relentless quest for justice in this matter.

Favela-Astorga admitted as part of his guilty plea, and evidence presented at two trials in this case in 2015 and 2019 established, that he was one of several armed bandits who had traveled from Mexico to the U.S. to hunt for marijuana smugglers to rob. At the time, Agent Terry and other members of the Border Patrol Tactical Unit (BORTAC) were on extended deployment in the desert to apprehend such robbery crews.

On December 14, near midnight, Agent Terry’s team attempted to arrest Favela-Astorga’s crew in a rural area north of Nogales, Arizona. A member of the robbery crew fired at the agents, hitting Agent Terry in the back and severing his spinal cord and aorta. According to evidence presented at the prior trials, Agent Terry called to a fellow agent, “Willie, I’m hit! I can’t feel my legs.” BORTAC agents, still under fire, tried to save Agent Terry but were unsuccessful.

Evidence from the trials established the five bandits at the scene were armed with four AK-47-style assault rifles and an AR-15 assault rifle and had food to last for days.

Favela-Astorga and others fled back to Mexico, leaving behind Manuel Osorio-Arellanes who had been shot in the stomach by agents. Manuel Osorio-Arellanes was convicted and sentenced in 2014 to 30 years in prison after cooperating in identifying other members of the robbery crew who were fugitives.

Mexican authorities arrested Favela-Astorga in October 2017 based on a provisional arrest warrant issued at the request of the United States. He was extradited to the United States in January 2020.

The other members of the robbery crew at the scene were Heraclio Osorio-Arellanes, Ivan Soto-Barraza, and Jesus Lionel Sanchez-Meza. All three were arrested in Mexico years after the shooting. Soto-Barraza and Sanchez-Meza were extradited to the United States in 2014, convicted at trial in December 2015, and sentenced to life in prison. Heraclio Osorio-Arellanes was extradited to the United States in 2018, convicted at trial in February 2019, and sentenced to life in prison.

In addition, Rosario Rafael Burboa-Alvarez pleaded guilty to murder and, while not at the firefight, admitted he recruited the crew members in Mexico. Burboa-Alvarez was sentenced to 324 months in prison. Border Patrol agents also had arrested Rito Osorio-Arellanes on immigration charges two days before the shootout, unaware he was part of the robbery crew. Osorio later pleaded guilty to conspiracy to interfere with commerce by robbery and was sentenced to 96 months in prison.

Agent Terry’s murder was principally investigated by the Federal Bureau of Investigation and the U.S. Border Patrol. The U.S. Marshals Service, the Mexican Navy (SEMAR), Mexico’s Office of the Attorney General (PGR), and the Department of Justice, Office of International Affairs, helped with Favela-Astorga’s apprehension and extradition.

“For over the last decade, the FBI and our partners have worked to bring justice to all involved in the killing of agent Brian Terry. We will not and did not waver in our commitment to ensure that those who commit acts of violence against law enforcement officials will be held accountable and punished to the fullest extent of the law,” said Chris Ormerod, Acting Special Agent in Charge of the FBI Phoenix Field Office. “We hope today’s final sentence will help bring a degree of comfort to Agent Terry’s family in knowing that all the individuals responsible for his murder have been brought to justice.”

“Today’s sentencing brings justice to the last of U.S. Border Patrol Agent Brian A. Terry’s murderers,” said Tucson Sector Chief Patrol Agent John Modlin.

“I thank the many law enforcement professionals who have worked on this case for over a decade and, in particular, acknowledge the dedication and efforts of FBI Special Agent Michelle Terwilliger who has led the investigation since the night of the shooting,” said Grossman.

The case was prosecuted by the U.S. Attorney’s Office for the Southern District of California after the U.S. Attorney’s Office for the District of Arizona was recused.

SUMMARY OF CHARGES                                    Case No. 11-cr-0150-TUC-DCB-BGM

Jesus Rosario Favela-Astorga                                 Age: 41           El Fuerte, Sinaloa, Mexico

Murder, Second Degree, in violation of 18 U.S.C. §§ 1111, 1114

Maximum Penalty: Life in prison     

INVESTIGATING AGENCIES

Federal Bureau of Investigation

United States Border Patrol

SAN DIEGO—Darris Cotton of Vista was sentenced in federal court today to 57 months in custody for submitting false applications for unemployment benefits to California’s Employment Development Department (EDD).

As early as July and August of 2020, Cotton submitted at least sixteen fraudulent applications for unemployment using other people’s names, dates of birth, and social security numbers.

The United States Department of Labor funds unemployment benefits, but the administration of the benefits is overseen by EDD. To qualify for benefits, an individual must submit an application with his or her name, date of birth, social security number, and other personal information. If the information is approved, EDD sends a debit card to the address provided in the application via U.S. Mail. In March 2020, the United States Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which included an economic relief package of more than $2 trillion designed to help the American people during the public health and economic crises that resulted from the COVID-19 pandemic. The CARES Act expanded the population of persons eligible for benefits, the time period during which persons are eligible for benefits, and/or the amount of benefits.

In this case, Cotton used a relative’s address to submit the fraudulent applications. Once Cotton received the debit cards in the mail from EDD, he used the debit cards to purchase postal money orders and to purchase luxury items such as Gucci backpacks. Cotton admitted that his criminal conduct caused a loss of $312,640 and that he submitted additional fraudulent applications for benefits in other states such as Arizona, Maryland, and Pennsylvania. Law enforcement seized $112,539 in currency and money orders from Cotton during the investigation and he agreed to forfeit that money as proceeds of his fraud.

“This defendant exploited an unemployment insurance program that was intended to be a safety net for workers who suffered financial hardship during a global pandemic,” said U.S. Attorney Randy Grossman. “Crimes like this took money away from those who truly needed it.” Grossman thanked the prosecution team and the investigating agencies for their excellent work on this case.

“This sentencing sends a strong message that CARES Act fraud will be punished to the fullest extent by federal law enforcement,” said Special Agent in Charge Jason Reynolds, San Diego Field Office, U.S. Secret Service. “This has been the culmination of hard work by numerous law enforcement agencies in the San Diego area working together, and we are committed to continuing our efforts and pursuing justice, putting an end to more fraudsters and criminal networks.”

“Homeland Security Investigations is committed to investigating all criminal organizations and individuals who commit financial fraud, and seek to exploit and profit from government programs that were created to benefit the American people,” said HSI San Diego Special Agent in Charge Chad Plantz. “This sentencing affirms HSI’s, and the government’s commitment to bringing these individuals to justice.”

Darris Cotton

Conspiracy to Commit Mail Fraud—Title 18, U.S.C., Section 1349 Criminal Forfeiture—Title 18, U.S.C., Section 981

Maximum penalty: Twenty years in prison; $250,000 fine or twice the gross gain or loss from the offense, whichever is greater; criminal forfeiture of all proceeds derived from the offense.

United States Secret Service Homeland Security Investigations

Department of Labor Office of Inspector General (OIG) San Diego Police Department

Carlsbad Police Department

Assistant U. S. Attorneys Carl Brooker, Lisa Sanniti, and Mark Pletcher    

NEWS RELEASE SUMMARY—September 16, 2022

SAN DIEGO— A Los Angeles man was sentenced in federal court today to 38­ months in prison for his participation in BitConnect, a massive fraudulent cryptocurrency investment scheme, which defrauded thousands of investors from the United States and abroad.

According to court documents, Glenn Arcaro, 44, 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. Furthermore, 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 the owner and promoters of BitConnect. The BitConnect Ponzi scheme ensnared 4,154 victims from 95 countries making it a true worldwide Ponzi scheme.

U.S. Attorney Randy Grossman said, “The U.S. Attorney’s Office for the Southern District of California is committed to ensuring justice for victims of this Ponzi scheme. Putting a technical sheen on a vintage scheme will not stop this office’s pursuit of a just outcome.” Grossman praised the work of FBI’s Cleveland Field Office, as well as IRS-CI, 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.

“Identifying and investigating criminals who commit complex financial crimes under the guise of a sound investment strategy are a priority of the FBI,” said Cleveland FBI Special Agent in Charge Gregory Nelsen.

“The global reach and thousands of victims Mr. Arcaro impacted underscores the fact that fiscal crimes that combine the allure of cryptocurrency with new technology and a savvy marketing strategy are borderless and often begin through a relationship built on trust, hope, and promise.  The FBI, together with our federal, state, and local partners, will continue to work tirelessly to ensure conniving criminals are no longer a threat to any individual or business in our society.”

“Glenn Arcaro and his co-conspirators created a global web of deception and fraud,” said IRS-CI Special Agent in Charge Tyler Hatcher. “IRS-CI and our law enforcement partners diligently unraveled this web of lies, and today’s sentencing is a reminder that fraud does not pay.  You will be caught, and you will go to prison.”

Arcaro admitted that he earned no less than $24 million from the BitConnect scheme, all of which, according to court documents, will now be repaid to investors in restitution or forfeited to the government. Arcaro took steps to transmit the BitConnect proceeds that he earned to offshore accounts, transform some of the proceeds into precious metals storage, and obtain foreign passports. Arcaro’s goal was to avoid paying federal and state income taxes on his income earned from the scheme and to shield his assets from collection by the Internal Revenue Service.

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

For Further Information, Contact: Special Assistant U. S. Attorneys Jeffrey Hill and Lisa Sanniti (619) 546-7924/8811   

SAN DIEGO – Jon J. Kahen of Great Neck, New York, pleaded guilty in federal court yesterday to four counts of money laundering in his role as a telecommunications company owner who facilitated and profited from the introduction of fraudulent robocall traffic into the United States.

Until 2020, Kahen was the owner and chief executive officer of Global Voicecom, Inc. (“GVI”), a voice over internet protocol (VoIP) provider based in Great Neck, New York.  GVI provided telecommunications services that introduced foreign phone traffic into the U.S. telephone system, making GVI a “gateway carrier.”  From approximately 2016 until a search warrant was executed at his home in January 2020, GVI was a gateway carrier for an India-based VoIP company that used GVI to route millions of fraudulent robocalls to American consumers.  Many of these robocalls involved individuals based in India fraudulently impersonating agents of the Social Security Administration (SSA), the Social Security Administration Office of Inspector General (SSA/OIG), and the Internal Revenue Service.  In addition to connecting these foreign callers to American consumers, GVI resold and leased to the Indian VoIP company with Direct Inward Dial and toll-free telephone numbers that made them appear to be based in the United States.  As a result of GVI’s actions, thousands of Americans were defrauded.

In his plea agreement, Kahen admitted that by 2018 he had become aware that his Indian client was using GVI’s services to commit fraud, and that by May 2019, Kahen was aware that the funds paid to GVI by this client for continued gateway carrier services were the proceeds of this fraud.  Despite this knowledge, Kahen and GVI continued to provide telecommunications services to the Indian client and conducted monetary transactions on the client’s behalf.  This criminal conduct ended only with the filing of a civil injunction in January 2020, when Kahen and GVI were enjoined from operating as intermediate VoIP carriers conveying any telephone calls into the U.S. telephone system.  

Under the terms of his plea agreement, Kahen has agreed to pay almost $400,000 in criminal forfeiture and restitution to victims of fraudulent robocalls connected by GVI. 

"This defendant opened the door to foreign fraudsters who exploited the good name of our government agencies to target Americans,” said U.S. Attorney Randy Grossman.  “Let this case be a message to players in the United States who have been facilitating foreign actors and profiting from the fraud that they will be held accountable."  Grossman thanked the prosecution team, the Department of Justice Consumer Protection Branch and investigating agencies for their excellent work on this case.

“U.S. consumers, many of whom are elderly or are otherwise vulnerable, are inundated with millions of illegal robocalls every day,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “Anyone with a telephone is a potential target. The Department is committed to stopping fraudulent robocalls and pursuing those who knowingly facilitate robocall fraud schemes for financial gain.”

“Mr. Kahen knowingly facilitated the robocalls of government imposters that not only defrauded U.S. consumers, but preyed on their trust in the government,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We will continue to pursue those who perpetuate these robocall fraud schemes, and I appreciate the trial attorneys, Yolanda McCray Jones and Wei Xiang, of the Justice Department’s Consumer Protection Branch and Special Assistant U.S. Attorneys, Jeffrey Hill and Lisa Sanniti, of the U.S. Attorney’s Office for the Southern District of California, for prosecuting this case. I also want to thank all our law enforcement partners for their contributions to the success of this investigation.”

“When consumers – especially our vulnerable older Americans – are exploited by fraudsters who are impersonating a government agency or official, the impact is detrimental and the repercussions are long-lasting,” said Inspector in Charge Eric Shen of the Postal Inspection Service’s Criminal Investigations Group. “Anyone who engages in or facilitates deceptive practices like this should know they will not go undetected. Postal Inspectors will continue to work tirelessly to hold those criminals accountable and bring justice to the American public.”

Criminal charges against Kahen were filed in the United States District Court for the Southern District of California on June 30, 2022, and transferred to the Eastern District of New York.  Kahen is scheduled to be sentenced on January 20, 2023, at 3:00 p.m. before U.S. District Judge Joanna Seybert in the Islip, New York federal courthouse.

This case was prosecuted for the U.S. Attorney’s Office for the Southern District of California by Special Assistant U.S. Attorneys Jeffrey Hill and Lisa Sanniti, and for the United States Department of Justice Consumer Protection Branch by Trial Attorneys Yolanda McCray Jones and Wei Xiang. 

The matter was investigated by agents from SSA-OIG, the U.S. Postal Investigation Service, the U.S. Secret Service, and by Homeland Security Investigations-New York. Resources from the Department’s Transnational Elder Fraud Strike Force aided in the matter’s investigation and prosecution.

DEFENDANT                                   Case Number 22-CR-1474-LL (SDCA) / 22-CR-309 (EDNY)    

Jon J. Kahen                                        Age: 48                                   Great Neck, NY

SUMMARY OF CHARGES

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

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

AGENCIES

Social Security Administration – Office of the Inspector General

United States Postal Inspection Service

United States Secret Service

United States Department of Homeland Security Investigations – New York

Assistant U. S. Attorneys Daniel D. Shin (619) 546-7609

NEWS RELEASE SUMMARY—September 15, 2022

SAN DIEGO—Sergio Cervantes-Lopez of San Diego and Remigio Sosa-Laez, a Mexican national, were charged yesterday in connection with a human smuggling event that ended with a high-speed chase.

According to documents filed in U.S. District Court, U.S. Border Patrol Agents observed Cervantes-Lopez as he drove a large sport utility vehicle to an area near Donovan State Prison and the George Bailey Detention Center shortly after 4:00 p.m. on September 13, 2022. The agents conducting surveillance on Cerventes-Lopez’s vehicle reported that a large group of eight to ten individuals entered his car before he drove away. When other agents responded to the area and attempted to conduct a traffic stop, Cervantes-Lopez fled at speeds as high as ninety miles per hour.

According to the complaint, during the ensuing chase, Cervantes-Lopez rammed a U.S. Border Patrol vehicle and backed into a civilian’s pick-up truck before running through a red light and colliding with another civilian’s sport utility vehicle. Cervantes-Lopez’s vehicle tipped over in the collision. After the collision, Cervantes-Lopez attempted to flee the area on foot but was quickly apprehended.

Cervantes-Lopez had eight other people in his sport utility vehicle at the time of the crash. A follow up investigation revealed that one of the individuals in the vehicle, Remigio Sosa-Laez, had allegedly guided the group across the border on foot. Two of the passengers stated that they feared for their lives during the chase.   

Cervantes-Lopez and Sosa-Laez were both arrested shortly after the collision and are awaiting their initial appearance before a United States Magistrate Judge.

“You gamble with your life when you trust a smuggler,” said U.S. Attorney Randy Grossman. “Smugglers don’t care about the health and safety of their cargo.” Grossman thanked the prosecution team and the U.S. Border Patrol for their excellent work on this case.

“Smugglers threaten the health and safety of our citizens and those migrants in their care, when they engage in these dangerous-senseless tactics,” said U.S. Border Patrol San Diego Sector Chief Patrol Agent Aaron M. Heitke.

DEFENDANT                                               Case Number 22mj3368-AHG                                 

Sergio Cervantes-Lopez, 30 years old

Remigio Sosa-Laez, 19 years old

SUMMARY OF CHARGES

Transportation of Illegal Aliens—Title 8, U.S.C., Section 1324

Maximum penalty: Five years in prison

Bringing in Aliens Without Presentation— Title 8, U.S.C., Section 1324

Maximum penalty: Ten years in prison

AGENCY

United States Border Patrol

*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 Melanie Pierson (619) 546-7976

NEWS RELEASE SUMMARY – September 9, 2022

SAN DIEGO – New Trade Ship Management S.A., a vessel operating company, and vessel Chief Engineer Dennis Plasabas were sentenced in federal court today for environmental crimes.

The company and its engineer pleaded guilty August 9, 2022, to maintaining false and incomplete records relating to the discharge of oily bilge water from the bulk carrier vessel Longshore. New Trade was sentenced to pay a fine of $1.1 million, a term of four years of probation, and ordered to hire an independent monitor to audit environmental compliance during the period of probation; Plasabas was sentenced to a term of 12 months in custody.

In pleading guilty, New Trade and Plasabas admitted that oily bilge water was illegally dumped from the Longshore directly into the ocean without being properly processed through required pollution prevention equipment. Oily bilge water typically contains oil contamination from the operation and cleaning of machinery on the vessel. The defendants also admitted that these illegal discharges were not recorded in the vessel’s Oil Record Book as required by law.

Specifically, on two separate occasions between October and December 2021, Chief Engineer Plasabas, who was employed by New Trade, ordered lower-ranking crew members to use a portable pneumatic pump and hose to bypass pollution prevention equipment by transferring oily bilge water from the vessel’s Bilge Holding Tank to the vessel’s Sewage Tank, from where it was discharged directly into the ocean.

Plasabas then caused the ship’s Master to fail to record these improper transfers and overboard discharges in the vessel’s Oil Record Book. Additionally, to create a false and misleading electronic record as if the pollution prevention equipment had been properly used, Plasabas directed lower-ranking crew members to pump clean sea water into the vessel’s Bilge Holding Tank in the same quantity as the amount of oily bilge water that he had ordered transferred to the Sewage Tank. Plasabas then processed the clean sea water through the vessel’s pollution prevention equipment as if it was oily bilge water to make it appear that the pollution prevention equipment was being properly used when in fact it was not. The electronic records indicate that approximately 9,600 gallons of clean sea water were run through the pollution prevention equipment.

“Today’s sentence sends a strong message that environmental crimes will have serious consequences,” said U.S. Attorney Randy Grossman. “Unlawful oil discharges have a serious negative impact on the marine environment.  We must safeguard our oceans by vigorous enforcement of environmental laws.” Grossman thanked the prosecution team and the U.S. Coast Guard for their excellent work on this case.

According to sentencing documents, the use or consumption of oil, including the intentional discharge of unfiltered oily bilge water, accounts for around 37 percent of worldwide ocean oil pollution. By contrast, accidental spills from ships account for 12 percent of oil pollution. As the National Academy of Sciences identified, the upshot of these statistics is that more than 99 percent of the estimated volume of operational discharge is related to noncompliance, because existing regulations restrict operational discharges of oil or limit them to not more than 15 ppm.

Marine mammal and bird species, which must regularly pass through the air-water interface to breathe, are particularly vulnerable to oil exposure. Effects of oil on ocean life may include ingestion of oil, accumulation of contaminants in tissues, DNA damage, impacts to immune functioning, cardiac dysfunction, mass mortality of eggs and larvae, e.g., in fish, loss of buoyancy and insulation for birds, and inhalation of vapors. A 2002 study undertaken in Canada estimated that the intentional discharge of oil from ships kills approximately 300,000 seabirds per year in Atlantic Canada – a yearly seabird mortality equal to that caused by the Exxon Valdez disaster in Alaska in 1989.

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

DEFENDANTS                                             Case Number 22cr1802-JO                              

New Trade Ship Management S.A.

Chief Engineer Dennis Plasabas                     Age: 48                                   Philippines

SUMMARY OF CHARGES

Act to Prevent Pollution from Ships – Title 33, U.S.C., Section 1908(a)

Maximum penalty: Six years in prison and $250,000 fine (individual); Five years of probation and a fine which is the greater of $500,000 or twice the amount of gross gain or loss (organization).

AGENCY

U.S. Coast Guard

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

NEWS RELEASE SUMMARY – September 9, 2022

SAN DIEGO – Giovanni “Gio” Tilotta, the proprietor of local firearms dealer Honey Badger Firearms, was convicted yesterday of assisting with unlicensed firearms dealing and conducting straw purchases with former San Diego County Sheriff’s Captain Marco Garmo and others.  A federal jury found Tilotta guilty of three felony counts following a six-day trial.

This conviction is believed to be the first federal criminal conviction of a civilian retail gun store owner in the Southern District of California in at least 15 years.

Tilotta was convicted of conspiring with Garmo, San Diego jeweler Leo Hamel, and others to make false statements in the acquisition of firearms. According to evidence presented at trial, Garmo and another Sheriff’s deputy falsely claimed to be the actual purchasers of new handguns, while really intending to transfer the weapons to other individuals who were the true buyers—notably including Hamel.  Tilotta was also found guilty of aiding and abetting Garmo’s unlicensed firearms trafficking enterprise, in which Garmo bought and resold dozens of firearms both for profit and to bank favors for Garmo’s anticipated campaign for Sheriff of San Diego County.

Garmo pleaded guilty to engaging in the business of dealing in firearms without a license on September 15, 2020, and is currently serving a prison sentence. Hamel pleaded guilty to aiding and abetting Garmo’s unlicensed dealing on November 22, 2019, and is presently awaiting sentencing.  

Tilotta committed these crimes through his licensed firearms dealer, Honey Badger Firearms in Kearney Mesa, despite an explicit warning he received from the California Department of Justice in December 2015 advising him to avoid allowing straw purchases at his business.  Emails admitted at trial indicated that, instead, Tilotta directed Hamel and Garmo to create sham emails to cover up the straw purchases they conducted at Honey Badger.

The jury deadlocked on a fourth felony count, which alleged that Tilotta conducted a firearms transfer in violation of California law, and U.S. District Judge Gonzalo P. Curiel declared a mistrial on that count.

According to evidence presented at trial, Tilotta’s specific conduct went beyond knowingly accepting false records for straw purchases. He also backdated firearms transfer records for certain customers without requiring them to present themselves at his business to begin a firearms transfer. As part of this process, Tilotta would himself answer questions designed to determine if a firearms recipient was prohibited from receiving a gun—such as whether they were the subject of a restraining order. Records introduced at trial showed that, rather than requiring certain customers to answer these questions, Tilotta answered them himself, including on behalf of local criminal defense attorney Vikas Bajaj, whom he had never met. 

As part of the same transaction, Tilotta sold Bajaj a handgun and an AR-15 style rifle inside Garmo’s Sheriff’s Department office using backdated paperwork.  Bajaj pleaded guilty to a misdemeanor for his role in that transfer on December 9, 2020.  At Tilotta’s trial, the parties stipulated that two San Diego Sheriff’s deputies also received AK-47 style rifles from Tilotta the same day. Tilotta acknowledged delivering those rifles to the deputies inside Garmo’s Captain’s office, in a transfer using backdated paperwork. 

“Our firearms laws depend on dealers to act as trusted gatekeepers,” said Attorney for the United States Rebecca G. Church. “Instead, this defendant violated the laws and falsified transfer records. This office will not hesitate to enforce the firearms laws against anyone who seeks to subvert them, including licensed dealers who intentionally break the law.”    

Tilotta is set to be sentenced by Judge Curiel on December 5, 2022. Sentencings for the remaining defendants are set on October 3, 2022, for former Sheriff’s Lieutenant Fred Magana; October 24, 2022, for Leo Hamel; and November 7, 2022 for Waiel “Will” Anton. 

Church thanked prosecution team as well as the dedicated investigators from the ATF and FBI, for their excellent work on this case.  Church added that the U.S. Attorney’s Office wishes to extend its sincerest gratitude to the San Diego County Sheriff’s Department for initiating this investigation, and for their assistance and support throughout its course.

“A vast majority of federal firearm licensees (FFL) operate their businesses in compliance with federal laws,” said ATF Los Angeles Field Division Special Agent in Charge Monique Villegas. “However, when an FFL intentionally chooses to violate those laws, ATF will investigate, as was the case with Giovanni Tilotta and Honey Badger Firearms. This conviction should serve as a deterrent to any other licensee choosing not to follow federal firearm laws.”

“For over three years, Tilotta misused his privilege as a federally licensed firearms dealer to subvert the system and obtain dozens of firearms for individuals who were unable to buy them legally,” said Special Agent in Charge Stacey Moy of the FBI San Diego Field Office. “Today's guilty verdict stops many more illegally purchased guns from getting into the wrong hands. The FBI and our law enforcement partners will continue to aggressively investigate any corrupt individual who ignores the law for their personal profit to ensure justice is served and our communities are safe.”

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

Defendants

Morad Marco Garmo, 54 years old

Leo Joseph Hamel, 65 years old

Giovanni Vincenzo Tilotta, 41 years old

Fred Magana, 45 years old

Waiel Yousif Anton, 38 years old

Summary of Charges

Title 18, U.S.C., Secs. 371, 924(a)(1)(A) – Conspiracy to Make False Statements in the Acquisition of a Firearm

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

Title 18, U.S.C., Sec. 922(a)(1)(A) – Engaging in the Business of Dealing in Firearms Without a License

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

Title 18, U.S.C., Sec. 924(a)(1)(A) – Making a False Statement in the Acquisition of a Firearm

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

Investigating Agencies

Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF)

Federal Bureau of Investigation (FBI)

Assistant U. S. Attorney Matthew J. Sutton (619) 546-8941 and Assistant U. S. Attorney J’me Forrest (619) 546-6741

NEWS RELEASE SUMMARY – September 8, 2022

SAN DIEGO – An indictment was unsealed in federal court today charging 10 alleged members of an Imperial Valley-based methamphetamine distribution network with drug trafficking and money laundering offenses. In addition, three more related defendants were charged today via complaint with drug trafficking offenses.

In a coordinated multi-state takedown that took place yesterday, federal, state, and local law enforcement agents and officers arrested multiple defendants and executed six search warrants in Imperial County. During the searches agents seized additional narcotics and two firearms. As of today, nine of the thirteen defendants are either in federal or state custody, and the search continues for four defendants. In addition to these seizures and arrests yesterday, during this long-term investigation, law enforcement has seized more than 119 pounds of methamphetamine and other illegal drugs and more than $80,000 in cash.

According to the indictment and other publicly-filed documents, this Imperial Valley-based network allegedly smuggled multi-kilogram quantities of methamphetamine across the international border. The defendants then used cars, the U.S. Mail, and commercial delivery services like FedEx to distribute that methamphetamine to sub-distributors located throughout Imperial County as well as in the state of Minnesota. In addition, the network used a corrections officer to smuggle fentanyl and contraband cellular telephones into Centinela State Prison.

“This case is the culmination of years of work by our agents and prosecutors, alongside our local law enforcement partners, to target a prolific Imperial Valley-based drug trafficking network,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office will continue to use every tool we have to stop these drug traffickers and bring them to justice.” Grossman thanked the prosecution team for their excellent work on this case.

“These arrests are the result of a multi-year collaborative effort between federal, state, and local law enforcement agencies,” said HSI San Diego Special Agent in Charge Chad Plantz. “Disrupting these illegal drug distribution networks is a vital step in preventing dangerous drugs from entering our communities, and HSI will continue to use its broad investigative authorities to aggressively investigate and bring to justice anyone who attempts to smuggle drugs across our borders.”

“The results of this long-term investigation reflect the commitment of the DEA and our federal, state and local law enforcement partners to stop methamphetamine trafficking networks,” said DEA Special Agent in Charge Shelly S. Howe. “Together, we will continue the fight against the distributors that are driving addiction in the United States.”

Postal Inspector in Charge of the Los Angeles Division Carroll N. Harris stated, “Operation Gotham City showed when the night is darkest, Postal Inspectors will endure to bring justice to those who criminally misuse the US Mail.  I fully commend the hard work and countless hours put forth by all the law enforcement agencies involved, which resulted in the success achieved today.”

U.S. Attorney Grossman also thanked federal, state, and local law enforcement for the coordinated team effort in the culmination of this investigation. This case was led by Homeland Security Investigation - Imperial Valley Border Enforcement Security Task Force, the Drug Enforcement Administration, and the United States Postal Inspection Service. Deputies, agents, and officers from the United States Marshals Service, Customs and Border Protection, Border Patrol, California Highway Patrol, El Centro Police Department, Calexico Police Department, Brawley Police Department, the Imperial County District Attorney’s Office and the Imperial County Sheriff's Office also provided vital assistance for the investigation.

This prosecution 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.

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

DEFENDANTS                                                                     Case Number 22-cr-1553-BAS                 

(D1) Omar Castro                                           Age: 30                                   Calexico, CA

(D2) Brianna Nunez                                       Age: 31                                   Imperial, CA

(D3) Ramon Luna                                           Age: 40                                   Calexico, CA

*(D4) Vanessa Vega                                       Age: 37                                   Calexico, CA

*(D5) Sasha Brown                                        Age: 34                                   Calexico, CA

*(D6) Michelle Figueroa                                Age: 22                                   Calexico, CA

(D7) Violette Espinoza                                   Age: 38                                   Hillside, IL

 (D8) Hector Perez                                          Age: 28                                   Colton, CA

*(D9) Brent Boggess                                      Age: 32                                   Calexico, CA

(D10) Guillermo Hernandez                           Age: 30                                   Calexico, CA

DEFENDANTS                                                                     Case Number 22-mj-8640-JLB    

(D1) Mario Gallegos                                      Age: 37                                   Calexico, CA

DEFENDANTS                                                                     Case Number 22-mj-8641-JLB                

(D1) Ray Munoz                                             Age: 41                                   Calexico, CA

DEFENDANTS                                                                     Case Number 22-mj-8642-JLB                

(D1) Ricardo Velarde                                     Age: 41                                   Calexico, CA

*Fugitives

SUMMARY OF CHARGES

Conspiracy to Distribute Methamphetamine (21 U.S.C. §§ 841(a)(1) and 846)

Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(2) and (h))

Possession with Intent to Distribute Controlled Substances (21 U.S.C., § 841(a)(1))

Distribution of Methamphetamine (21 U.S.C. § 841(a)(1))

Importation of Methamphetamine (21 U.S.C. § 952 and 960).

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

AGENCIES

Homeland Security Investigations

Drug Enforcement Administration

United States Postal Inspection Service

United States Marshals Service

United States Border Patrol

Customs and Border Protection, Office of Air and Marine

California Highway Patrol

El Centro Police Department

Calexico Police Department

Brawley Police Department

Imperial County Sheriff's Office

Imperial County District Attorney's Office

Imperial Valley - Law Enforcement Coordination Center

Department of Justice, Organized Crime Drug Enforcement Task Forces

U.S. Attorney’s Office for the Central District of California

U.S. Attorney’s Office for the District of Minnesota

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

U.S. Attorney’s Office for the District of Arizona

Assistant U. S. Attorney Melanie K. Pierson (619) 546-7976 

NEWS RELEASE SUMMARY – September 8, 2022

SAN DIEGO – Felipa Oliveros was sentenced in federal court today to three months in custody for smuggling pesticides into the United States from Mexico. 

Oliveros pleaded guilty in April 2022 to smuggling bottles of Bovitraz or Taktic into the United States.  Oliveros had been charged as part of a larger organized pesticide smuggling ring, which also included her daughter, Laura Orellana, who was sentenced to 92 days in custody for her role in the conspiracy.

On June 7, 2022, Sofia Mancera Morales, the ringleader of this pesticide smuggling organization, was sentenced to eight months in custody and ordered to pay $7,497 in restitution for the cost of disposal of the illegal pesticides. In pleading guilty, Mancera had acknowledged she obtained the illegal pesticides in Mexico and delivered them to others to smuggle into the United States.

According to sentencing documents, Mancera recruited individuals via Facebook, offering to pay $40-$150/box of six 1-liter bottles delivered to the United States. Morales directed her recruits to deliver the pesticides to a self-storage facility near the border in Calexico and required them to send her photographs of the pesticides in the storage unit as proof of delivery prior to payment. Mancera paid the recruits to lease self-storage units in their own names, and provide her with the keys. Recruits caught at the border with pesticides reported that they had seen items delivered by others in their self-storage units, including pesticides, veterinary medications and alcohol. One recruit delivered almost 1,000 bottles of pesticides in a one-month period, while others advised that they had delivered pesticides two to five times per week.

The pesticides involved were primarily Bovitraz and Taktic, which contain the active ingredient amitraz at an emulsifiable concentration of 12.5 percent. In the United States, amitraz in this form is a cancelled and unregistered pesticide. Amitraz is an acaricide that, in the United States, is registered to control varroa mites in honeybee colonies at a concentration of 3.33 percent and is also registered for use in dog flea collars. Additionally, amitraz is classified as a Group C possible human carcinogen based upon rodent studies, and, therefore, long-term exposure could result in cancer.          

Federal law prohibits the distribution and sale of cancelled or unregistered pesticides. Only pesticides registered with the EPA may be imported or sold in the United States. All pesticides intended for use in the United States must bear their EPA registration number on their labels, preceded by the phrase “EPA Registration No.” or “EPA Reg. No.”  In addition, all required information on a label must appear in the English language. All of the containers smuggled by this group were labeled only in Spanish and bore no EPA registration numbers. The lawful importation of pesticides into the United States requires a Notice of Arrival to be provided to U.S. Customs or U.S. EPA, pursuant to 19 CFR 12.112.  None of the co-conspirators provided a Notice of Arrival for the pesticides in this case.

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

DEFENDANT           Case Number 20cr3054-JAH__

Felipa Oliveros           Age: 52           El Centro, California

SUMMARY OF CHARGES

Smuggling – Title 18, U.S.C., Section 545

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

AGENCY

Homeland Security Investigations; Environmental Protection Agency, Criminal Investigation Division; California Environmental Protection Agency

Assistant U. S. Attorney Oleksandra “Sasha” Johnson (619) 546-9769

NEWS RELEASE SUMMARY – August 31, 2022

SAN DIEGO – Timothy Ingram of North Hollywood, California, and Joaquin Lopez of Hollywood, Florida, were sentenced in federal court today to significant prison terms - nine years and two years in prison, respectively - for their roles in a large-scale criminal enterprise that engaged in extortion and fraud to swindle about $2 million from more than 70 elderly victims across the nation.  Ten elderly victims who resided in San Diego County lost over $300,000 to the fraud. 

From November 1, 2019, until October 14, 2020, the members of the criminal enterprise targeted elderly Americans, contacting them by phone and feeding them phony stories that their grandchildren were in legal trouble and needed money to cover 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, mail or commercial carriers, or wire transfers.  Conspirators laundered the proceeds by transferring the funds or converting from fiat currency to cryptocurrency.

According to court documents, Timothy Ingram’s participation in the conspiracy was lengthy and substantial. For nearly a year, he ran a network of money mules who conducted cash pick-ups and received wire transfers from victims who believed they were sending money to help a grandchild or other close relative or friend.  Ingram provided the mules with details about the victims, including addresses and names.  He coordinated cash pick-ups by his mule network through encrypted messages, instructing the mules on when to approach the victims’ doors, what fake name and occupation to tell the victims, and where to deliver the cash proceeds.

Ingram organized the criminal activity of at least five other participants in California, including co-defendants Anajah Gifford and Jack Owuor.  Although most of Ingram’s activity occurred in California, at times, he directed mules to travel out of state to execute the same scheme elsewhere.  He also recruited mules to receive wire transfers of victim funds into their bank accounts and provided extensive instruction and supervision over how to withdraw the funds to avoid getting caught.  On at least one occasion, Ingram conducted a cash pick-up himself, collecting $42,000 in person from a 76-year-old victim in Burbank, California.  In addition to being sentenced to serve 108 months in custody, Ingram was ordered to forfeit $124,700 in proceeds that he personally received from the offense, and to pay $1,932,507.93 to the victims in restitution. Three California victims spoke at the sentencing hearing.

U.S. District Judge Cathy Ann Bencivengo described the scheme as long term, sophisticated, and one of the most evil manipulations she has ever encountered in her 17 years on the bench. The judge commented that the defendant stole not only the financial security of the victims but exploited their fear and trust.

As part of his plea agreement, defendant Joaquin Lopez admitted that he used bank accounts under his control to funnel victim proceeds for co-defendant Tracy Knowles. Lopez, a resident of Florida, was involved in the scheme from February 2020 until October 2020.  His participation in the conspiracy was crucial:  In exchange for a 20 percent cut, Lopez made bank accounts available to other scheme participants to receive wire transfers from victims and to disperse those proceeds.  As part of his sentence, Lopez was ordered to forfeit $62,700 in proceeds he personally received from the offense.  In sentencing Lopez, the judge said that one cannot go through life blindly laundering money for criminals without having consequences.

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.

“These defendants were crucial members of a sophisticated criminal organization that shamelessly exploited the grandparents’ love for their grandchildren,” said U.S. Attorney Randy Grossman.  “The long-lasting effects of this crime on our seniors and the community cannot be overstated.  The victims were financially and emotionally devastated by callous people who thought only of enriching themselves. With the convictions and sentences imposed today, the government is securing justice for the victims who fell prey to this heartless crime.” Grossman thanked the prosecution team and investigators for their excellent work on this case.

“Today's sentencing of two key members of the criminal enterprise targeting our elderly population is a testament to the San Diego Elder Justice Task Force's continued commitment to bringing fraudsters to justice,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “It is the FBI's mission to protect the American people and protecting our seniors from financial crimes is imperative to the well-being and safeguarding of our communities. The FBI, along with our law enforcement partners, will not stop until all the defendants are held accountable for their involvement in this complex organized crime.”

As of today, six of the eight defendants charged in the case have pleaded guilty. Two defendants are fugitives and remain at large.

DEFENDANTS                                             Case Number 22cr2216-CAB                                       

Tracy Adrine Knowles                                   30        Orlando, Florida

Fugitive                                                        

Adonis Alexis Butler Wong                           30        Northbay Village, Florida

Fugitive

Timothy Ingram, aka Bleezy                          30        North Hollywood, California

Sentenced today to 108 months in prison                                                                                               

Anajah Gifford                                                24        North Hollywood, California

In custody.  Sentencing set for November 17, 2022

Lyda Harris                                                     74        Laveen, Arizona

Released on bond. Sentencing set for November 17, 2022

Joaquin Lopez                                                 46        Hollywood, Florida

Sentenced today to 24 months in prison

Jack Owuor                                                     25        Paramount, California                                           

Sentenced on August 17, 2022 to 46 months in prison

Tracy Glinton                                                 35        Orlando, Florida

Released on bond. Sentencing set for November 17, 2022

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

Assistant U. S. Attorney Aaron P. Arnzen (619) 546-8384

NEWS RELEASE SUMMARY – August 31, 2022

SAN DIEGO – San Diego-based corporate and securities attorney Andrew Coldicutt is charged in a federal grand jury indictment with securities fraud in connection with a pump-and-dump scheme.

Coldicutt made his first appearance in federal court on Friday, August 26, 2022. 

According to the allegations in the indictment, Coldicutt worked with other individuals from 2017 through 2019 to prepare and execute a pump-and-dump stock fraud scheme. Coldicutt thought the individuals with whom he was working were associated with a shady hedge fund. In reality, he was working with undercover FBI agents and sources gathering evidence against Coldicutt, the indictment said.

To carry out his role in the scheme, Coldicutt created a sham company and a business model – which supposedly focused on backyard fruit harvesting - and prepared and filed registration statements with the SEC for an initial public offering of the company’s stock. According to the indictment, the registration statements contained false and misleading information about the company, its business plans, and the people who owned and controlled the company. 

“Corporate lawyers and other gatekeepers in the securities industry occupy a position of trust and confidence,” said U.S. Attorney Randy Grossman.  “This investigation and indictment signal the United States’ commitment to protecting the integrity of the stock market, and the innocent investors who are victimized by penny stock fraud schemes.” Grossman thanked the prosecution team for their excellent work on this case.

“Attorney Coldicutt occupied a position of trust. He allegedly betrayed that trust when he chose to ignore the laws and ethical rules of conduct he swore to uphold by attempting to commit stock fraud,” said Stacey Moy, Special Agent in Charge of the FBI's San Diego Division. “These types of pump-and-dump schemes hurt not only local investors, but investors across the United States. The FBI will continue to protect the integrity of the stock market and investors impacted by fraud schemes such as this.”

The United States acknowledges the assistance and cooperation of the Securities and Exchange Commission.

DEFENDANT                                               Case Number 22cr1881-JO                                          

Andrew Coldicutt (42 years old)                    San Diego, California

SUMMARY OF CHARGES

Title 15, U.S.C., Sec. 77q, 77x – Securities Fraud; Title 15, U.S.C., Sec. 77g, 77x – False Securities Registration Statements; Title 18, U.S.C., Sec. 1343 – Wire Fraud; Title 18, U.S.C., Sec. 981(a)(1)(C) and Title 28, U.S.C., Sec. 2461(c) – Criminal Forfeiture

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

*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 Kevin Mokhtari (619) 546-8402

NEWS RELEASE SUMMARY – August 29, 2022

SAN DIEGO – Gustavo De Avila Moreira Farinha, the lead defendant in a nationwide wire fraud and identity theft scheme, was sentenced in federal court today to 34 months in prison.

De Avila is the last of five defendants to be sentenced in connection with the scheme, which targeted app-based rideshare and food delivery companies and their customers. 

In May 2021, five Brazilian nationals, including De Avila, were charged by criminal complaint and later by indictment with engaging in a nationwide conspiracy to establish fraudulent driver accounts with multiple internet and app-based rideshare and food delivery companies, including by using identities stolen from the very customers of those companies. De Avila’s co-defendant and long-term girlfriend, Tatiane Pereira Arantes, was sentenced earlier this month to more than 2½ years in prison, while De Avila’s other co-defendants—Natalia Magalhaes Rocha, Leonardo Trulsen De Oliveira, and Thassya Rebeca Da Silva Alves—were previously sentenced to 2 years and 4½ months, 2 years and 3 months, and 2 years, respectively. 

As set forth in his plea agreement and publicly filed sentencing documents, De Avila admitted that between 2018 and May 2021, he and his co-conspirators, all of whom were Brazilian nationals living in the United States illegally, operated a scheme to defraud major app-based rideshare and food delivery companies.  In Spring 2020, with the COVID-19 pandemic in full swing, the conspirators shifted away from the rideshare companies, which saw a dramatic decrease in traffic, to food, grocery and other delivery companies, which saw a corresponding and precipitous increase in demand. De Avila and his co-conspirators exploited the surge in demand by creating driver accounts with stolen identities, collecting referral bonuses from the fraudulent accounts, and by using, renting, and selling the accounts to others on these platforms, including people who were not otherwise qualified to drive for the platforms. 

De Avila and his co-conspirators also admitted that once they received payment from the rideshare and delivery companies, they laundered the money both to promote the conspiracy and to conceal the fact that the source of the funds was an elaborate fraudulent scheme.  While the fraudulent scheme targeted popular app-based rideshare and food delivery services, De Avila and his co-conspirators also stole and used the identities of close to 100 victims to create fraudulent driver accounts on the various platforms over the three-year conspiracy. 

Before imposing a 34-month sentence, U.S. District Judge Gonzalo P. Curiel stated that De Avila and his co-conspirators “harvested identities,” which left victims with a “lingering unknown” as to whether their identities were “in the ether” or in the hands of other criminals. 

“Today’s sentencing is the final step to achieving justice on behalf of dozens of victims whose identities were stolen,” said U.S. Attorney Randy S. Grossman. “All five defendants will spend at least two years in prison for sending their victims on a miserable journey to reclaim their good names. We are determined to pursue cases against identity thieves because these crimes have such a devastating impact on the everyday lives of victims.” Grossman thanked the prosecution team and agents from Homeland Security Investigations for their excellent work on this case.

“It’s great to see justice brought in this case” said Chad A. Plantz, Special Agent in Charge for Homeland Security Investigations, San Diego. “Technology-enabled crimes and identity theft cost U.S. consumers billions of dollars every year. HSI will continue to pursue financial fraud and identity theft investigations to hold criminals accountable.”

DEFENDANTS                                             Case Number 21CR1538-GPC    

Gustavo De Avila Moreira Farinha              Age: 30                                                                       Brazil

Tatiane Pereira Arantes                                  Age: 38                                                                        Brazil

Natalia Magalhaes Rocha                               Age: 30                                                                        Brazil

Leonardo Trulsen De Oliveira                        Age: 30                                                                        Brazil

Thassya Da Silva Alves                                  Age: 30                                       Brazil

SUMMARY OF CHARGES

Count 1 - Conspiracy to Commit Wire Fraud – Title 18, U.S.C., 1349
Maximum Penalty: Twenty years in prison, $250,000 fine

Count 2 – Conspiracy to Launder Monetary Instruments – Title 18, U.S.C., 1956(a)(1)(A)(i), (b)(i), and 1956(h)Maximum Penalty: Twenty years in prison, $500,000 fine or twice the value of the monetary instruments

Counts 3-17- Aggravated Identity Theft – Title 18, U.S.C., 1028AMaximum Penalty: Mandatory minimum of two years in prison, to run consecutively to the specified felony.

INVESTIGATING AGENCY

Homeland Security Investigations

SAN DIEGO – Benjamin Robert Laubbacher of Carlsbad pleaded guilty in federal court today, admitting that he committed six robberies of grocery stores and other businesses during a 15-day period in 2021, including several heists where he displayed a handgun.

In his plea agreement, Laubbacher admitted to robbing a CVS pharmacy, a Bath & Body Works and numerous grocery stores between January 22, 2021, and February 5, 2021. All the robberies were committed in a similar manner: He entered the store, selected items for purchase, approached the register and demanded money from the cashier. In certain robberies, Laubbacher displayed a black handgun in his waistband. Over the course of his six successful and one attempted robberies, Laubbacher obtained approximately $2,327.32.

“This defendant inflicted maximum terror on cashiers, who will suffer a lifetime of anguish over the memory of this experience,” said U.S. Attorney Randy Grossman. “Now he will be held accountable.” Grossman thanked the prosecution team and the investigating agencies for their excellent work on this case.

“This defendant had little qualms of brandishing a gun to intimidate and cause fear in his victims during six different robberies to get what he wanted,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “With today’s guilty plea, Laubbacher will no longer be a threat to anyone else in our community. The FBI is proud to have coordinated this investigation with our law enforcement partners, including the San Diego, Carlsbad and Irvine Police Departments and the San Diego Sheriff's Department, as well as FBI Los Angeles Orange County Resident Agency, to stop this defendant from committing any more violent crimes and hold him accountable for his actions.”

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.

Laubbacher is scheduled to be sentenced on November 14, 2022 at 9:00 a.m. before U.S. District Judge Cynthia Bashant.

DEFENDANT                                               Case Number 21-cr-2010-BAS

Benjamin Robert Laubbacher                         Age: 50

SUMMARY OF CHARGES

Hobbs Act Robbery and Attempted Hobbs Act Robbery – Title 18, U.S.C., Section 1951

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

Possession of a Firearm in Furtherance of a Crime of Violence (2 counts) – Title 18, U.S.C., Section 924(c)

Maximum Penalty: Life in prison and $250,000 fine

Minimum Penalty: Five years in prison per count, consecutive to all other sentences

AGENCIES

Federal Bureau of Investigation

San Diego Police Department

San Diego Sheriff’s Department

Carlsbad Police Department

Irvine Police Department

For Further Information, Contact:

Assistant U. S. Attorney Larry Casper (619) 546-6734

SAN DIEGO – Lorenzo Anthony Garcia of Brawley, 23, was sentenced in federal court today to 130 months in prison and three years of supervised release for providing the fentanyl that caused the overdose death of Josue M. Garcia Moreno, a young football player from Central Union High School in Imperial County. When issuing the sentence, U.S. District Court Judge Gonzalo Curiel noted the importance of ensuring a significant consequence to deter future similar acts, stating that “fentanyl is a drug so powerful that it takes a life in the blink of an eye. There is no recovery, no redress, no rehabilitation. Just misery.”

On October 8, 2021, Garcia pleaded guilty to knowingly selling Josue, a 15-year old high school student, a substance containing fentanyl on October 6, 2019. The plea agreement reflects that two days later, Josue’s great-grandfather, with whom he lived, discovered him lifeless. Garcia admitted that Josue used the fentanyl Garcia sold him at his grandfather’s home late in the evening or October 7, 2019 or early the following morning; he further stipulated that the fentanyl he provided caused Josue’s death. At the hearing, the prosecutor noted that even though Garcia was aware Josue had died, he thereafter arranged to sell fentanyl to another individual, a circumstance that Judge Curiel found “most troubling.”

“This case is a tragic reminder that a promising young life can vanish in an instant due to a single mistake with fentanyl,” said U.S. Randy Grossman. “It is vitally important to hold purveyors of this poison accountable, obtaining justice and closure for family members who face such a loss.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

The Southern District of California is an epicenter for the trafficking of synthetic fentanyl, a drug that is
30 to 50 times more powerful than heroin, rendering even a tiny amount potentially deadly. Recently released statistics reflect that more than 60% of the nation’s fentanyl border seizures by U.S. Customs and
Border Protection occur in San Diego and Imperial Counties.

“The U.S. Attorney’s office is working with multiple law enforcement and community partners to vigorously attack the fentanyl problem on all fronts, including interdiction, prosecution of cartel targets and local dealers, and prevention through harm reduction and education,” Grossman said. “We are using every available tool to combat this deadly epidemic and stop these tragic losses.” Grossman encouraged parents to learn about fentanyl and talk with their children about the deadly consequences of taking pills not prescribed to them. Those interested in learning more can consult an online Fentanyl Tool Kit the U.S.
Attorney’s Office helped to create to provide vital information to the community regarding fentanyl: https://www.sdpdatf.org/community-parent-fentanyl-toolkit

“In the age of fentanyl, it’s critical that we all work together to educate teenagers about the dangers of drugs. Sadly, fentanyl cost Josue Garcia Moreno his life and the potential for a bright future,” said DEA
Special Agent in Charge Shelly S. Howe. “The DEA has resources available for parents, grandparents, and educators at www.getsmartaboutdrugs.gov to assist in talking to teenagers about drugs. We urge families to use DEA’s resources and to advocate for drug education classes in your schools.”

Under federal law, sellers and suppliers of drugs that cause death or serious bodily injury may face a 20- year mandatory minimum sentence. In recent years, the U.S. Attorney’s Office has charged dozens of alleged dealers with that 20-year mandatory minimum offense – including today’s case.

Grossman urged users who experiment with fentanyl and those who have a loved one with Substance Use
Disorder to obtain Naloxone, which can reverse the effects of opioid overdose and save lives.

DEFENDANT                                                      Case Number 20cr1222 GPC
Lorenzo Anthony Garcia            Age: 23            Brawley, CA

SUMMARY OF CHARGE
Distribution of Fentanyl – Title 21, U.S.C., Sections 841(a)(1)
Maximum penalty: 20 years in prison and $1,000,000 fine

AGENCIES
Drug Enforcement Administration
El Centro Police Department

Valerie Chu (619) 546-6750 and Michelle L. Wasserman (619) 546-8431

NEWS RELEASE SUMMARY – August 19, 2022

SAN DIEGO – Elliot Adler, an attorney and founding partner of a boutique San Diego law firm, was sentenced in federal court today to one year and one day in custody for conspiring with former Chabad of Poway Rabbi Yisroel Goldstein to commit tax fraud. He was also ordered to pay a $20,000 fine.

Beginning at least as early as 2010 and continuing through October 2018, Adler participated in a so-called “90/10” tax scheme with Rabbi Goldstein. Specifically, Adler gave money to Rabbi Goldstein that purported to be a donation to Chabad of Poway. Goldstein then secretly funneled ninety percent of the funds back to Adler, keeping ten percent of the funds as his fee. None of the donated funds was actually given to the Chabad as a charitable donation. Adler then falsely claimed that the fraudulent donations were tax-deductible on his tax returns, allowing him to reduce his personal income tax liability by approximately $500,000 (cumulatively) for tax years 2011 through 2017. 

To accomplish the scheme, Adler and Goldstein communicated using coded language. Goldstein would refer to cash as “challah,” the source of the cash as “the baker,” and would invite co-conspirators to “wrap tefillin” when he proposed meeting to receive checks or deliver cash.  For example, on Thursday, January 7, 2016, Goldstein texted Adler, “Good morning I got the challah[.] What time?”  That same day, Adler replied via text message, “Monday morning 8am at shul or today before 12pm if you can come to my office.”  Goldstein then replied, “Monday @8 is fine.”  On Monday, January 11, 2016, Goldstein deposited a check from Adler for $30,000 payable to Chabad of Poway. 

On or about December 29, 2017, Goldstein deposited two sequentially-numbered checks from Adler, one for $180,000 and the other for $980,000. On Friday, January 5, 2018, Goldstein sent Adler a coded text message proposing that they “get together and wrap teffilin.” A few days later, on January 10, 2018, Goldstein wired approximately $1 million to a wholesale and retail jeweler to purchase 246 Suisse Fortuna 1 oz. rectangular gold ingots, 246 Canadian Maple Leaf 1 oz. gold coins, and 246 American Eagle 1 oz. gold coins.  On January 17, 2018, Goldstein sent another coded message to Adler asking him, “[w]hen can you come [i]n for a teffilin wrap?  I’m ready for you.”  Goldstein delivered the gold to Adler the next day.  Adler nonetheless claimed on his 2017 tax returns that he had donated over $1 million to charity, fraudulently reducing his 2017 tax liability by approximately $447,000. Adler was ordered to forfeit the gold coins as part of his sentence.

At today’s hearing, U.S. District Judge Cynthia Bashant also ordered Adler to forfeit the gold. A restitution hearing is set for October 24, 2022, at 10:30 a.m.

Adler and Goldstein took additional steps to conceal their scheme from authorities. On or about October 18, 2018, Goldstein told Adler that he was under investigation by the IRS and that he had been the subject of an undercover operation relating to tax evasion.  Goldstein asked for Adler’s help to prove, falsely, that Goldstein, and not Adler, was in possession of the gold coins purchased with Adler’s purported donation.  In the early hours of October 19, 2018, Adler arrived at Goldstein’s residence and returned the gold coins. 

In July 2020, Rabbi Goldstein pleaded guilty to fraud charges, admitting that he participated in a complex, years-long, multi-million-dollar tax-evasion scheme and other financial deceptions involving theft of public money.  Rabbi Goldstein’s plea agreement outlined the fraud scheme with Adler.

Adler is the eleventh and final individual to be sentenced for crimes discovered in this investigation. Two additional individuals agreed to deferred prosecution agreements as a result of the investigation. 

“For several years, Elliot Adler defrauded the United States while giving the false appearance of making charitable donations,” said U.S. Attorney Randy S. Grossman. “This investigation and the resulting prosecutions should leave no doubt that the United States takes tax fraud seriously and those who perpetrate these schemes will be brought to justice.” Grossman thanked the prosecution team and the FBI and IRS for their excellent work on this case.

“For years, attorney Adler chose to ignore the laws and ethical rules of conduct he swore to uphold and conspired with others using sophisticated schemes to commit tax fraud,” said Special Agent in Charge Stacey Moy of the FBI San Diego Field Office. “Such schemes erode the public's trust in the legal and charitable institutions within our community, but today's sentencing ends his criminal career. Financial crimes have long been a top FBI investigative focus and we remain steadfast in our efforts, in coordination with our partners, to bringing such fraudsters to justice.”

“Mr. Adler, who is an educated and successful attorney, knowingly broke the law by repeatedly committing tax fraud for over seven years,” said Special Agent in Charge Tyler R. Hatcher of IRS Criminal Investigation’s Los Angeles Field Office. “Adler stole over half-a-million dollars from the United States, and our special agents are committed to bringing thieves like him to justice. Our tax and financial systems rely on Americans to pay their fair share in order to ensure that our infrastructure, our national security, and our education and benefits programs are funded. IRS Criminal Investigation is proud to work alongside the FBI and the US Attorney’s Office on this incredibly impactful investigation.”

SUMMARY OF CHARGES                        Case Number 22-CR-821-BAS

Elliott Adler                                                   Age:45             San Diego, CA

Conspiracy to Commit Tax Fraud, in violation of Title 18, USC 371

Maximum Penalty: Five years in prison

PREVIOUSLY CHARGED DEFENDANTS AND SUMMARY OF CHARGES                     

Yisroel Goldstein, Case Number 20CR1916-BAS             Age: 58            Poway

Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371

Sentenced to 14 months in custody

Alexander Avergoon, Case Number 19CR2955-BAS       Age: 44            San Diego                  

Wire Fraud, in violation of Title 18, USC 1343

Aggravated Identity Theft, in violation of Title 18, USC 1028A

Money Laundering, in violation of Title 18, USC 1956(a)(1)(B)(i)

Sentenced to 64 months in custody

Bruce Baker, Case Number 20CR1912-BAS                     Age: 74            La Jolla

Conspiracy to Defraud the United States and file false tax returns, in violation of Title 18, USC 371

Sentenced to 15 months in custody

Bijan Moossazadeh, Case Number 20CR1893-BAS          Age: 63            San Diego

Filing a False Tax Return, in violation of Title 26, USC 7206(1)

Sentenced to three months in custody

Yousef Shemirani, Case Number 20CR1895-BAS            Age: 74            Poway

Filing a False Tax Return, in violation of Title 26, USC 7206(1)

Sentenced to two years’ Probation

Boris Shkoller, Case Number 20CR1913-BAS                  Age: 83            Del Mar

Filing a False Tax Return, in violation of Title 26, USC 7206(1)

Sentenced to one year Probation

Mendel Goldstein, Case Number 20CR2772-BAS             Age: 63            Brooklyn, NY

Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371

Sentenced to eight months in custody

Stuart Weinstock, Case Number 21CR0042-BAS             Age:    64            Escondido, CA

Filing False Tax Return, in violation of Title 26, U.S.C. §7206(1)

Sentenced to eight months in custody

Jason Ellis, Case Number 21CR2200-BAS             Age: 42            Poway, CA

Filing False Tax Return, in violation of Title 26, U.S.C. §7206(1)

Sentenced to six months of home confinement

Yehuda Hadjadj, Case Number 22CR148-BAS    Age: 47           La Jolla, CA

Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371

Sentenced to three years’ Probation

Rotem Cooper, Case Number 20CR3968-BAS                  Age:    54            San Diego      

Deferred Prosecution Agreement

Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371

Igor Shtilkind, Case Number 20CR3955-BAS                   Age:    55            San Diego

Deferred Prosecution Agreement

Conspiracy to Commit Wire Fraud, in violation of Title 18, USC 371

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Internal Revenue Service – Criminal Investigations

Assistant U. S. Attorney Oleksandra “Sasha” Johnson (619) 546-9769      

SAN DIEGO – Jack Owuor, a resident of Paramount, California, was sentenced in federal court to 46 months in prison for participating in a large-scale “grandparent scam” racketeering conspiracy.  As part of his guilty plea, Owuor admitted that he, along with seven others, 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 targeted elderly Americans, contacting them by phone and 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, Jack Owuor personally conducted cash pick-ups from victims under the direction of co-defendant Timothy Ingram.  In their phone messages, Ingram and Owuor exchanged information about the scheme, including victim names, addresses, relatives’ names, and false names and occupations for Owuor to provide to the victims.  They also discussed using female mules for cash pick ups to make “it more smooth.”  On one occasion, Owuor picked up $33,000 in cash from three different victims in a single day.  In addition, Owuor recruited, supervised, and directed other mules to conduct pick-ups and to provide bank accounts to receive and launder the victim proceeds.  Owuor was ordered to forfeit $4,300 in proceeds he personally received from the offense, and to pay $434,600 to the victims in restitution.  During the hearing, U.S. District Judge Cathy Ann Bencivengo indicated that this custodial sentence will send a strong message to anyone who conspires to participate in such a “heartbreakingly evil” scheme.

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.

“Today’s sentence, including prison time, demonstrates the gravity of the defendant’s egregious behavior to steal from the elders of our community,” said U.S. Attorney Randy Grossman. “It is despicable that these fraudsters preyed on a grandparents’ care and concern for their loved ones to line their own pockets.  This important effort to bring these unscrupulous wrongdoers to justice helps protect victims and send the message that crime doesn’t pay.”  Grossman commended the prosecution and law enforcement agencies who diligently pursued this case.

“Owuor and the criminal enterprise he was a part of preyed upon our elderly population, defrauding some of our most vulnerable and often most trusting citizens,” 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 criminals we can stop when working in tandem with our local, state, and federal law enforcement partners who make up this collaborative team. This coordinated response is paramount to addressing elder fraud and the task force will continue to aggressively investigate those who operate these criminal enterprises and seek justice for the elderly victims they intend to exploit.”

As of today, five of the eight defendants charged in the case have pleaded guilty and are awaiting sentencing. Two defendants are fugitives and remain at large.

DEFENDANTS                                             Case Number 22cr2216-CAB                                       

Tracy Adrine Knowles                                   30        Orlando, Florida

Fugitive                                                        

Adonis Alexis Butler Wong                           30        North Bay Village, Florida

Fugitive

Timothy Ingram, aka Bleezy                          29        North Hollywood, California

In custody.  Sentencing set for August 31, 2022.                                                                                               

Anajah Gifford                                                23        North Hollywood, California

In custody.  Sentencing set for August 26, 2022.

Lyda Harris                                                     74        Laveen, Arizona

Released on bond. Sentencing set for September 30, 2022.

Joaquin Lopez                                                 46        Hollywood, Florida

Released on bond. Sentencing set for August 31, 2022

Jack Owuor                                                     25        Paramount, California                                           

Sentenced today to 46 months in prison. 

Tracy Glinton                                                 35        Orlando, Florida

Released on bond. Sentencing set for November 4, 2022.

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

A California man was sentenced today to 46 months in prison for his participation in a large-scale “grandparent scam.”

According to court documents, Jack Owuor, 25, of Paramount, California, was part of a network of individuals who, through extortion and fraud, induced elderly Americans across the United States to pay up to tens of thousands of dollars each to purportedly help their grandchild or other loved one. On March 9, 2022, Owuor pleaded guilty to one count of conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act. 

Members of the network contacted elderly Americans by telephone and impersonated a grandchild, other close relative, or friend of the victim. They falsely convinced the victims that their relatives or friends were in legal trouble and needed money to pay for bail, for medical expenses for car accident victims, or to prevent additional charges from being filed. The defendants and their co-conspirators then received money from victims via various means, including in-person pickup, the mail, and wire transfer, and then laundered the proceeds, including through the use of cryptocurrency. Owuor personally made cash pickups from numerous victims. Owuor also recruited and directed other members of the conspiracy.

“The Department of Justice’s Consumer Protection Branch will continue to pursue and prosecute groups that target elderly and vulnerable Americans through extortion, fraud, and impersonating their loved ones,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “We are grateful to our partners at the U.S. Attorney’s Office for the Southern District of California and the FBI for their work to advance the department’s efforts against organized elder fraud, and to the San Diego County District Attorney’s Office.”

“Today’s sentence, including prison time, demonstrates the gravity of the defendant’s egregious behavior to steal from the elders of our community,” said U.S. Attorney Randy Grossman for the Southern District of California. “It is despicable that these fraudsters preyed on a grandparent’s care and concern for their loved ones to line their own pockets. This important effort to bring these unscrupulous wrongdoers to justice helps protect victims and send the message that crime doesn’t pay.” 

“Owuor and the criminal enterprise he was a part of preyed upon our elderly population, defrauding some of our most vulnerable and often most trusting citizens,” 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 criminals we can stop when working in tandem with our local, state, and federal law enforcement partners who make up this collaborative team. This coordinated response is paramount to addressing elder fraud and the task force will continue to aggressively investigate those who operate these criminal enterprises and seek justice for the elderly victims they intend to exploit.” 

The FBI’s San Diego Field Office, North County Resident Agency investigated the case with critical assistance from investigators of the San Diego County District Attorney’s Office.

Trial Attorneys Lauren M. Elfner and Wei Xiang of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Oleksandra Johnson for the Southern District of California prosecuted the case.

The department’s extensive and broad-based efforts to combat elder fraud seek to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.

A California man was sentenced Friday to eight months in custody for the importation, shipping and sale of illegally imported pesticides that were falsely advertised as products that could protect the user “from airborne infectious diseases.”

Samir Haj, 47, of San Diego, pleaded guilty in the Southern District of California on May 25, 2021, to charges relating to the unlawful importation, sale and mailing of an unregistered pesticide product from Japan marketed as a killer of airborne viruses such as COVID-19. Both he and his firm, Eco Shield LLC, were ordered to forfeit $427,689 in proceeds and pay restitution of $86,754. Eco Shield was ordered to pay an additional fine of $42,000.

According to court documents, the defendants sold the product EcoAirDoctor, a small gas-emitting badge that defendants claimed would kill viruses within a certain distance. Products making these types of public health claims are regulated by the U.S. Environmental Protection Agency (EPA), which requires extensive testing to substantiate the claims of efficacy and safety prior to approving them for registration and sale in the United States. EcoAirDoctor was not registered with the EPA, and testing performed on behalf of the defendants revealed that the badge was not measurably effective “at killing off a useful number of microbes within the air.”

“This prosecution sends a strong message that circumventing federal environmental and public safety laws in order to profit from the public’s fears during a pandemic will not be tolerated,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “I thank our partners at the Environmental Protection Agency, Homeland Security Investigations, and the Postal Service for the investigation that led to the convictions and sentencings in this case.”

“This product not only didn’t work, but it was even potentially harmful,” said U.S. Attorney Randy Grossman for the Southern District of California. “The defendant and his company will be held to account for cashing in on Covid-19 fears during a global pandemic.”

“The defendants knowingly persisted in their false assertions that their product provided protection against COVID-19,” said Special Agent in Charge Scot Adair of EPA’s Criminal Investigation Program in California. “EPA and its law enforcement partners are committed to holding responsible parties accountable for putting people’s health at risk.” 

“Homeland Security Investigations (HSI), along with our government partners, are committed to protecting the American public against criminal networks attempting to illegally import and sell products that could endanger lives of U.S. consumers for financial gain,” said Special Agent in Charge Chad Plantz of HSI San Diego. “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.”

“Postal Inspectors remain vigilant in protecting the U.S. Postal Service (USPS) and the communities we serve," said Inspector in Charge Carroll N. Harris of the U.S. Postal Inspection Service (USPIS). "Preventing the dangerous misuse of the nation’s mail system remains one of our top priorities.”

The EcoAirDoctor badge consisted of sodium chlorite and natural zeolite. When the product is opened, the zeolite contacts the sodium chlorite, releasing chlorine dioxide gas. The EPA has established a reference concentration for long-term continuous exposure to chlorine dioxide of 0.00007 parts per million (ppm). Risks from the inhalation of chlorine dioxide are a concern if the air concentrations exceed the reference concentration. The documentation provided by Eco Shield LLC states that chlorine dioxide levels below 0.0001 do not kill viruses and claims that the concentration for viral inactivation should be between 0.0001 and 0.1 ppm, in excess of the levels deemed safe by the EPA.

Moreover, both sodium chlorite and chlorine dioxide (nonhydrate) fall into Hazard Class 5.1 under the USPS rules and regulations, for which mailing is prohibited. Transportation of these materials via USPS is strictly prohibited, due to the danger of fire and explosion. Chlorine dioxide does not require air to combust and can cause coughing, wheezing, and respiratory distress. At very high exposure levels, it can be fatal. Records from Eco Shield LLC indicate that 1,744 Air Doctor Portables were shipped via the USPS to purchasers across the United States between March 1, 2020 and April 18, 2020. At least 300 of those shipments occurred after the defendants received notice that shipping by mail was unlawful.

The defendants imported the EcoAirDoctor badge from Japan, falsely describing it as air purifiers rather than pesticides, which would have subjected the entry to inspection by the EPA. In addition to falsely describing the nature of the goods, the entry documents undervalued the shipment by over $500,000, allowing the defendants to evade $33,919 in Customs duties. The sentence imposed required the defendants to pay restitution of $86,754 to U.S. Customs to cover the loss of duty and the cost of disposing of seized EcoAirDoctor badges.

The defendants profited handsomely from the sale of the illegally-imported pesticides. At the outset of the pandemic, the badges, purchased for $6.25 each, were then sold to the public in the United States for $20.95 each, plus shipping. During the first six months of 2020, the defendants pocketed $1,132,950 from the sale of the badges, including sales occurring outside the United States. The Federal Trade Commission issued a warning letter on April 27, 2020, advising the company not to make unsubstantiated claims for Coronavirus protection, and on July 24, 2020, the EPA issued a Stop, Sale, Use or Removal Order. The sentence requires the defendants to forfeit $427,689 in proceeds from the sale of the badges within the United States.

The EPA’s Criminal Investigation Division, HSI, and the USPS investigated the case.

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

Assistant U. S. Attorney Melanie K. Pierson (619) 546-7976

NEWS RELEASE SUMMARY – August 12, 2022

SAN DIEGO – Eco Shield, LLC and its owner, Samir Haj, were sentenced in federal court today in connection with the importation, shipping and sale of “EcoAirDoctor” during the pandemic.

Haj was sentenced to eight months in custody, and both defendants (Eco Shield and Haj) were ordered to forfeit $427,689 in proceeds and pay restitution of $86,754, while the company was ordered to pay a fine of $42,000. EcoAirDoctor consisted of a small badge clipped to clothing that released chlorine dioxide into the air and was represented by the defendants to protect the user “from airborne infectious diseases” including COVID-19. 

Products making these types of public health claims are regulated by the U.S. Environmental Protection Agency (EPA), which requires extensive testing to substantiate the claims of efficacy and safety prior to approving them for registration and sale in the United States. EcoAirDoctor was not registered with the EPA, and testing performed on behalf of the defendants revealed that the badge was not measurably effective “at killing off a useful number of microbes within the air.”

The EcoAirDoctor badge consisted of sodium chlorite and natural zeolite.  When the product was opened, the zeolite contacted the sodium chlorite, releasing chlorine dioxide gas. The EPA has established a reference concentration for long-term continuous exposure to chlorine dioxide of 0.00007 parts per million (ppm). Risks from the inhalation of chlorine dioxide are a concern if the air concentrations people are exposed to exceed the reference concentration. The documentation provided by Eco Shield, LLC states that levels below 0.0001 do not kill viruses and claims that the concentration for viral inactivation should be between 0.0001 and 0.1 ppm. Based on these figures, if the defendants’ product emitted chlorine dioxide gas at levels deemed safe by the EPA, it would not be at levels sufficient to kill viruses.

Both sodium chlorite and chlorine dioxide (nonhydrate) fall into Hazard Class 5.1 under the U.S. Postal Service ("USPS") rules and regulations, for which mailing is prohibited. Transportation of these materials via USPS is strictly prohibited, due to the danger of fire and explosion. Chlorine dioxide does not require air for it to burn and can cause coughing, wheezing, and respiratory distress. At very high exposure levels, it can be fatal. Records from Eco Shield, LLC indicated that 1,744 Air Doctor Portables were shipped via the USPS to purchasers across the United States between March 1, 2020, and April 18, 2020. At least 300 of those shipments occurred after the defendants received notice that shipping by mail was unlawful.

The defendants imported the EcoAirDoctor badge from Japan, falsely describing it as air purifiers rather than pesticides, which would have subjected the entry to inspection by the EPA. In addition to falsely describing the nature of the goods, the entry documents undervalued the shipment by over $500,000, allowing the defendants to evade $33,919 in Customs duties. The sentence imposed required the defendants to pay restitution of $86,754 to U.S. Customs to cover the loss of duty and the cost of disposing of seized EcoAirDoctor badges.

The defendants profited handsomely from the sale of the illegally-imported pesticides. At the outset of the pandemic, the badges, purchased for $6.25 each, were then sold to the public in the United States for $20.95 each, plus shipping. During the first six months of 2020, the defendants pocketed $1,132,950 from the sale of the badges, including sales occurring outside the United States. The Federal Trade Commission issued a warning letter, on April 27, 2020, advising the company not to make unsubstantiated claims for Coronavirus protection, and on July 24, 2020, the EPA issued a Stop, Sale, Use or Removal Order. The sentence requires the defendants to forfeit $427,689 in proceeds from the sale of the badges within the United States.

“This product not only didn’t work, but it was even potentially harmful,” said U.S. Attorney Randy Grossman. “The defendant and his company will be held to account for cashing in on Covid fears during a global pandemic.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“The defendants knowingly persisted in their false assertions that their product provided protection against COVID-19,” said Special Agent in Charge Scot Adair of EPA’s Criminal Investigation program in California. “EPA and its law enforcement partners are committed to holding responsible parties accountable for putting people’s health at risk.” 

“Homeland Security Investigations (HSI) along with our government partners are committed to protecting the American public against criminal networks attempting to illegally import and 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.”

“Postal Inspectors remain vigilant in protecting the US Postal Service and the communities we serve.  Preventing the dangerous misuse of the nation’s mail system remains one of our top priorities,” stated Inspector in Charge Carroll N Harris.

This case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, Homeland Security Investigations, and the Postal Service. The case is being prosecuted by Assistant U.S. Attorney Melanie K. Pierson of the U.S. Attorney's Office for the Southern District of California and Senior Trial Attorney Stephen Da Ponte of the Environmental Crimes Section of the Department of Justice.

DEFENDANTS                                 Case Number 21cr1463-JLS                                               

EcoShield, LLC                                                                                 

Samir Haj                                            Age: 47                                   San Diego, CA

SUMMARY OF CHARGES

Entry of Goods Falsely Classified – Title 18, U.S.C., Section 541

Maximum penalty: Two years in custody, $250,000 fine, restitution and forfeiture

Mailing of Injurious Substances – Title 18, U.S.C., Section 1716(j)(1)

Maximum penalty: One year in custody, $100,000 fine

Sale/Distribution of Unregistered Pesticide – Title 7, U.S.C., Section 136j(a)(1)(A) and 136l(b)(1)(B)

Maximum penalty: One year in custody, $100,000 fine

AGENCIES

Homeland Security Investigations; U.S. Environmental Protection Agency, Criminal Investigation Division; U.S. Postal Inspection Service

California Department of Toxic Substances Control, Office of Criminal Investigations

*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.

Assistant U. S. Attorney Jill Streja (619) 546-8401

NEWS RELEASE SUMMARY – August 12, 2022

SAN DIEGO – Former San Diego Police Officer Peter Griffin and three others are charged in an indictment partially unsealed today with crimes related to owning and operating five illicit massage businesses in California and Arizona that sold commercial sex under the guise of offering therapeutic massage services.

Griffin was arrested as he left his San Diego home early yesterday morning and made his first appearance in federal court today. Likewise, defendants Kyung Sook Hernandez and Yu Hong Tan were also taken into custody Thursday and appeared in federal court today. A fourth defendant remains at large.

According to the indictment, Griffin owned and operated the businesses with Kyung Sook Hernandez, Yu Hong Tan, and the fourth defendant at various times between 2013 and August 2022. Their alleged criminal scheme included using cell phones, the internet, and banking channels to register their businesses; advertise commercial sexual services online; employ multiple women to perform commercial sexual services in the businesses; manage the illicit businesses’ finances; and benefit financially from their illegal enterprise.

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 businesses he now stands charged with operating and promoting.

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.

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.

DEFENDANTS                                             Case Number 22-CR-1824-JO                                 

Peter Griffin                                                    78

Kyung Sook Hernandez                                 58

Yu Hong Tan                                                  56

SUMMARY OF CHARGES

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

18 U.S.C. §§ 371, 1952

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

Money Laundering

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

18 U.S.C. § 1957

Conspiracy to Commit Wire Fraud and Wire Fraud

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

18 U.S.C. §§ 1349, 1343

False Statement to a Mortgage Lender

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

18 U.S.C. § 1014

AGENCIES

Homeland Security Investigations

Internal Revenue Service Criminal Investigation

San Diego Human Trafficking Task Force

Escondido Police Department

Tempe, Arizona Police Department

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

A federal judge in the Southern District of California partially unsealed an indictment today in which four individuals are charged with conspiracy, interstate and foreign travel or transportation in aid of racketeering (ITAR), money laundering, making a false statement to a mortgage lender, and wire fraud for conduct associated with owning and operating five illicit massage businesses that sell commercial sex under the guise of offering therapeutic massage services in California and Arizona. 

According to the indictment, Peter Griffin, 78, Kyung Sook Hernandez, 58, Yu Hong Tan, 56, and a fourth defendant indicted under seal, owned and operated the illicit massage businesses at various times between 2013 and August 2022. Their criminal scheme allegedly included using cell phones, the internet, and banking channels to register their businesses, advertise commercial sexual services online, employ multiple women to perform commercial sexual services in the businesses, manage the illicit businesses’ finances, and profit from the illegal enterprises.

Griffin, who is a retired police officer and 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 now stands charged with operating and promoting. 

Griffin was arrested near his San Diego residence early yesterday morning and made his initial appearance in federal court today. Hernandez and Tan were also taken into custody Thursday and appeared in federal court today. A fourth defendant remains at large.

If convicted, the defendants face up to five years in prison for conspiracy to commit ITAR and committing ITAR; up to 30 years in prison for wire fraud, conspiracy to commit wire fraud, and for making a false statement to a mortgage lender; and up to 10 years in prison for money laundering, as well as monetary penalties, and a period of supervised release and restitution.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Assistant Attorney General Kenneth Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Randy S. Grossman for the Southern District of California, and Special Agent in Charge Chad A. Plantz of Homeland Security Investigations (HSI) San Diego Field Office made the announcement.  

HSI conducted the investigation with the assistance of IRS – Criminal Investigation, the San Diego Human Trafficking Task Force, the Escondido Police Department, the San Diego Police Department, the San Diego District Attorney’s Office, the San Diego County Sheriff’s Department, and the Tempe (Ariz.) Police Department.

Assistant U.S. Attorney Jill Streja of the Southern District of California, Trial Attorney Caylee Campbell of the Criminal Division’s Money Laundering and Asset Recovery Section, and Trial Attorney Leah Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.

Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.

An indictment is merely an allegation, and the defendants are presumed innocent until proven guilty.

Assistant U. S. Attorneys C. Seth Askins (619) 546-6692 and Lyndzie M. Carter (619) 546-8780

NEWS RELEASE SUMMARY – August 12, 2022

SAN DIEGO – Antonio Hurtado, the boat captain of the doomed vessel smuggling 32 migrants in May 2021 wherein three people died, was sentenced today in federal court to 18 years in prison. At the sentencing hearing, U.S. District Judge Janis L. Sammartino stated this “is the most egregious case I’ve ever had in my courtroom in over 15 years in the Southern District of California.”

As detailed in pleadings filed prior to the hearing, during the afternoon and evening of May 1, 2021, smugglers in Puerto Neuvo, Baja California, Mexico, shuttled undocumented migrants from the beach to a location approximately two hours offshore near the Coronado Islands where Hurtado and his 40-foot boat – named the “Salty Lady” – were waiting.  Those individuals – including three unaccompanied minors – had agreed to pay between $15,000 and $18,000 to be smuggled into the United States illegally. 

Throughout that night and into the early morning hours, Hurtado piloted his boat and its occupants through rainy conditions and rough seas from Mexico into United States territorial waters.  Along the way, according to many of the smuggled migrants, Hurtado repeatedly used controlled substances and even lost consciousness for over an hour before passengers were finally able to wake him. Shortly thereafter, the vessel suffered engine failure.  Hurtado ignored his passengers’ pleas to call the U.S. Coast Guard for help, and the vessel drifted closer and closer to land, inevitably running aground approximately 50 yards from shore near Point Loma.  Knowing his boat was doomed as waves battered it and it began to list on its side, Hurtado jumped into the water and made his way to shore, abandoning his passengers – who had concealed themselves in the cabin and below deck at his direction – and leaving them to fend for themselves.  When the vessel broke apart from the pounding of the surf, they were thrown into the water. 

Park Rangers stationed at nearby Cabrillo National Park saw this event unfolding and immediately called the Coast Guard.  Multiple agencies – including but not limited to the Coast Guard, the Harbor Police Department, the National Park Service, San Diego Lifeguard Services, San Diego Air and Marine Branch, Homeland Security Investigations, and United States Border Patrol – responded to the scene and began a massive rescue and recovery effort.  Thanks to their swift response, they were able to rescue 29 undocumented migrants from the water.  Tragically, they recovered three individuals who had been aboard the boat and did not survive – Maricela Hernandez-Sanchez, Victor Perez-Degollado, and Maria Eugenia Chavez-Segovia.  Subsequently, the Medical Examiner determined that these three individuals had sustained blunt force trauma and drowned.

Based on statements from the surviving undocumented migrants, Hurtado was identified as the pilot of the boat, taken into custody, and transported to a Border Patrol station for processing.  However, while there, he advised that he was “coming down” from his prior use of a controlled substance, so agents brought him to a hospital to detox.  In the Border Patrol station, Border Patrol Agent Xalick Castorena knelt beside Defendant and attempted to apply an ankle restraint for security during transportation.  When he did so, Hurtado looked around the room as if to assess the situation, turned to the left, and slammed his right knee into the side of Agent Castorena’s face, committing an assault on a federal officer that Judge Sammartino referred to as “violent” and “awful.”

“Thirty-two passengers put their savings and their lives in this defendant’s hands. His reckless behavior and egregious failure to seek assistance put every one of them at serious risk and caused the tragic loss of three lives,” said U.S. Attorney Randy Grossman.  “This sentence recognizes the serious nature of these crimes and stands as a stern warning to smugglers: your profit-driven schemes will fail; we will prosecute you for your crimes; and we will obtain justice for your victims.”  Grossman thanked the prosecution team and numerous federal agents and officers who pursued this case.

“Human smugglers have no respect for human life, as is demonstrated by this defendant,” said Chad Plantz, Special Agent in Charge for Homeland Security Investigations San Diego. “The deaths in this investigation could have been prevented had the defendant not treated these victims like dispensable cargo; HSI will not tolerate transnational criminal organizations attempting to further their multi-billion dollar enterprise in San Diego. HSI is committed to investigating smugglers and holding them accountable for their actions.”

“This prosecution highlights the U.S. Attorney’s Office and U.S. Coast Guard’s commitment to safeguarding our nation against illicit smuggling and protecting all individuals operating on our waters,” said Commander Ray A. Slapkunas, Deputy Sector Commander, Coast Guard Sector San Diego. “This extremely unfortunate case highlights that smuggling operations are inherently dangerous and sometimes deadly when people put their safety in the hands of those that do not have their best interest in mind. While nothing can bring back those individuals lost, today’s sentence serves as a reminder that the Coast Guard and our partners at the Department of Justice will work tirelessly to hold accountable those who seek to deliberately engage in the illegal and dangerous practice of human smuggling.”

 “Collaboratively, the efforts of many law enforcement agencies, including that of the United States Attorney’s office resulted in Antonio Hurtado’s arrest, conviction, and just sentencing,” said Chief Patrol Agent Aaron M. Heitke. “This incredibly dangerous and unpredictable tactic has already claimed lives, yet smuggling organizations continue to enrich themselves by using it.”

“This event is a clear indication of the lack of concern smugglers have for vulnerable populations,” said San Diego Air and Marine Director Brandon Tucker. “Individuals put their lives in the hands of criminal organizations to enter the United States illegally through the unforgiving Pacific Ocean.  Unfortunately, three lives were lost that day, but I am thankful for the efforts by Air and Marine Operations agents and our partner agencies to rescue and ensure the safety of the 29 individuals that were stranded at sea.”

After serving his custodial sentence, Hurtado will be on supervised release for a period of 3 years. 

DEFENDANT                                               Case Number 21-cr-1615-JLS                                           

Antonio Hurtado                                             Age: 40                       San Diego, CA

SUMMARY OF CHARGES

Attempted Bringing In Illegal Aliens Resulting in Death and Aiding and Abetting

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

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

Attempted Bringing In Illegal Aliens 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

Assault on a Federal Officer

            Title 8, U.S.C., Section 111(a)(1) and (b)

            Maximum penalty:  20 years in prison and $250,000 fine

AGENCY

Homeland Security Investigations

United States Border Patrol

Air and Marine Operations (CBP)

National Park Service

United States Coast Guard

San Diego Harbor Police Department

San Diego Fire-Rescue Department

San Diego Lifeguard Services

Assistant U. S. Attorney Adam Gordon (619) 546-6720

NEWS RELEASE SUMMARY – August 12, 2022

SAN DIEGO – More deadly fentanyl is being seized by border officials in San Diego and Imperial counties than at any of the nation’s 300-plus ports of entry, making this federal district an epicenter for fentanyl trafficking into the United States.

In the first nine months of FY 2022 (October through June), U.S. Customs and Border Protection law enforcement agencies in San Diego and Imperial counties (CBP Field Operations and Border Patrol) seized 5,091 pounds of fentanyl – which amounts to about 60 percent of the 8,425 pounds of fentanyl seized around the entire country. Click here for CBP and Border Patrol statistics. 

These fentanyl seizures in San Diego by CBP include land ports of entry at San Ysidro, Otay Mesa, Tecate, Andrade and Calexico. Seizures by Border Patrol stations within the San Diego Sector include Imperial Beach, Chula Vista, Brown Field, El Cajon, Campo, Boulevard, San Clemente and Murietta.  In addition, seizures by the Border Patrol in the Imperial Valley include El Centro and Calexico.

Mexican cartels are increasingly manufacturing fentanyl for distribution and sale in the United States Precursors are imported from China and other countries and then pressed into pills, powder or mixed into other drugs at massive, industrial-scale labs.

Initially, drug trafficking organizations were adding small amounts of fentanyl to large loads of other drugs like methamphetamine. But more recently, these criminal organizations are moving significantly larger quantities of fentanyl pills and powder across the border. In a recent six-day period, CBP and Border Patrol intercepted four separate vehicle loads of fentanyl weighing between 100 and 250 pounds from July 13 to 18 in Campo and Calexico. Please see https://www.cbp.gov/newsroom/local-media-release/five-days-six-busts-have-calexico-cbp-officers-seizing-494-packages and https://www.cbp.gov/newsroom/local-media-release/border-patrol-agents-seize-over-200-pounds-fentanyl.

“A decade ago, we didn’t even know about fentanyl, and now it’s a national crisis,” said U.S. Attorney Randy Grossman. “The amount of fentanyl we are seizing at the border is staggering. The number of fentanyl seizures and fentanyl-related deaths in our district are unprecedented.”

• According to statistics released by the San Diego County Medical Examiner’s Office, fentanylrelated overdose deaths have increased 2,375 percent in San Diego County, from 33 in 2016 to at least 817 in 2021. The total may increase as the Medical Examiner’s Office makes final determinations in causes of death.
• According to CBP, seizures of fentanyl in San Diego are up by approximately 323 percent in the last three years, from just 1,599 pounds in FY 2019 to 6,767 in FY 2021. With three months to go in FY 2022, seizures in San Diego in FY 2022 are on pace to meet or exceed 2021 levels.
• In Imperial County, seizures of fentanyl increased 272 percent from FY 2019 to FY 2022, from 40 pounds to 149 pounds – with three months still to count in FY 2022.

Please see the following video messages by U.S. Attorney Grossman; Anne Maricich, acting Director of Field Operations for the San Diego Field Office; San Diego Sector Chief Patrol Agent Aaron M. Heitke;  El Centro Chief Patrol Agent Greg Bovino; HSI San Diego Special Agent in Charge Chad Plantz; and Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office: https://youtube.com/playlist?list=PLGvHJHdPh24UtqMDDnr080IE66OTl8Nxg

“U.S. Customs and Border Protection officers in the San Diego Field Office have the arduous task of sifting through 150,000 northbound travelers every day to find those conducting illegal activity, including narcotics smuggling,” said Anne Maricich, acting Director of Field Operations for the San Diego Field Office.  “Drug trafficking organizations will use anyone they can to help them with their dangerous and illegal activities, including regular border crossers as well as teens in the hopes that they won’t arouse suspicion.  CBP is committed to keeping this dangerous drug from reaching our communities.”

“2016 was the first year San Diego Sector Border Patrol tracked fentanyl seizures,” said San Diego Sector Chief Patrol Agent Aaron M. Heitke. “In that year, our sector seized a total of 71 pounds. This fiscal year to date, San Diego Sector has already seized over 600 pounds, an increase of 745 percent, with two months remaining in the fiscal year. We will continue to work with our National and International partners to dismantle these criminal organizations and keep our borders free of these nefarious actors.”

“Fentanyl is dangerous on all levels: To our Border Patrol Agents and CBP Officers working hard to interdict this dangerous toxin, as well as to the general public who too often meet a tragic end,” said El Centro Chief Patrol Agent Greg Bovino. “With a concerted effort between law enforcement, the U.S. Attorney’s Office, and the public, we can stop fentanyl smuggling and protect our communities.”

“Fentanyl is an extremely dangerous narcotic that kills indiscriminately,” said HSI San Diego Special Agent in Charge Chad Plantz. “Fentanyl is not the type of drug you experiment with, and it is only a matter of time before drug users consume a fatal dose. This deadly drug does not discriminate nor do the transnational criminal organizations (TCO) who smuggle this dangerous drug. These TCOs have no regard for the lives taken and the violence created by this illegal enterprise. HSI is committed to preventing this drug from entering our communities and destroying lives and devastating families. We will continue to work with our law enforcement partners and prioritize investigations targeting the drug cartels who are smuggling fentanyl into the United States and bring to justice any organization or individuals who seek to profit off the sale of this dangerous narcotic.”

“There is no doubt we are in the middle of a fentanyl crisis at the hands of criminal enterprises, transcending our borders into the communities where we live, where we work, where we go to school,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “The FBI’s mission is to protect the American people and we will apply the full force of the FBI behind investigating those criminal enterprises to stop the influx of illicit fentanyl into San Diego. We are dedicated to eliminating this threat where it begins, and will devote all necessary resources and personnel, while working alongside our law enforcement partners, to ensure justice is served and our communities are safe.”

“Air and Marine Operations will continue to work with our federal, local, state and international partners to provide air and marine capabilities along our borders to interdict fentanyl loads that are being brought into the United States by criminal organizations who have no regard for the implications of such a lethal drug,” said Brandon Tucker, director of the U.S. Customs and Border Protection San Diego Air and Marine Branch. 

The U.S. Attorney’s Office for the Southern District of California, which is responsible for enforcing federal criminal laws in San Diego and Imperial counties, is employing a dual strategy of prosecution and prevention. Regarding the former, the office has prioritized and significantly increased the number of fentanyl-related prosecutions. There has been an approximately 1,600 percent increase in the number of people charged with fentanyl-related crimes over the last five years. These include numerous successful prosecutions of dealers who distribute fentanyl resulting in someone’s death. Those charges carry a mandatory minimum sentence of 20 years in federal prison.

“We continue to work with our law enforcement partners to pursue justice for the victims who die as a result of fentanyl trafficking and to prosecute the people responsible for this crisis - from the Mexican drug cartel leadership, to the couriers, to the street dealers who distribute the fatal doses,” Grossman said.

The strategy for combatting the crisis cannot be limited to prosecutions. Law enforcement agencies, including federal, state and local partners, must continue to lead on education and other prevention efforts. For example, the U.S. Attorney’s Office, which holds a leadership role in the county’s opioid coalition, has been a driving force behind the creation of a fentanyl tool kit that provides critical information to the public on fentanyl dangers. Please see the Prescription Drug Abuse Task Force website: https://www.sdpdatf.org/community-parent-fentanyl-toolkit. In addition, the U.S. Attorney’s Office’s Outreach Team is available to provide presentations to any audience. Interested groups can arrange a fentanyl presentation by contacting cindy.cipriani@usdoj.gov or shastity.urias@usdoj.gov. 

Grossman also noted that the Administration’s National Drug Control Strategy focuses on two critical drivers of the epidemic: untreated addiction and drug trafficking. “Our office is taking a 360-degree approach to the fentanyl crisis. We are prioritizing actions that will save lives, promoting grant opportunities, working with partners to get people the care they need, going after drug traffickers’ profits, and making better use of data to guide all these efforts.” See National Drug Control Strategy, https://www.whitehouse.gov/wp-content/uploads/2022/04/National-Drug-Control-2022Strategy.pdf.

We need help from everyone in the community to be educated on the dangers of fentanyl. “Prevention is key to stopping the death toll,” Grossman said.  “Parents need to talk with their kids about fentanyl. 

A tiny amount will kill, and people are overdosing by accident, with many unaware that they are even taking fentanyl. No drug is safe in this era. Do not experiment with any illicit drug, because it might contain fentanyl. And it just might be the last thing you do.”

The U.S. Attorney’s Office, together with several federal law enforcement partners, has created a poster that will be hung at the San Ysidro and Otay Mesa ports of entry, warning would-be smugglers and distributors of fentanyl of stiff consequences if their actions lead to deadly overdose. “YOUR FENTANYL KILLS,” the poster says in both English and Spanish. “Distribution of Fentanyl (pills or powder) resulting in death or serious bodily injury carries a mandatory sentence of 20 years in federal prison. YOU PAY THE PRICE!”

On August 31, the U.S. Attorney and other law enforcement officials will observe International Overdose Awareness Day, the world’s largest annual campaign to end overdose and remember those who have died and acknowledge the grief of the family and friends left behind. The campaign raises awareness of overdose - one of the world’s worst public health crises - and stimulates action and discussion about evidence-based overdose prevention and drug policy.

Assistant U. S. Attorney Melanie Pierson (619) 546-7976

NEWS RELEASE SUMMARY – August 9, 2022

SAN DIEGO – New Trade Ship Management S.A. (New Trade), a vessel operating company, and vessel Chief Engineer Dennis Plasabas, pleaded guilty in federal court today to maintaining false and incomplete records relating to the discharge of oily bilge water from the bulk carrier vessel Longshore.

New Trade and Plasabas admitted that oily bilge water was illegally dumped from the Longshore directly into the ocean without being properly processed through required pollution prevention equipment. Oily bilge water typically contains oil contamination from the operation and cleaning of machinery on the vessel. The defendants also admitted that these illegal discharges were not recorded in the vessel’s Oil Record Book as required by law.

Specifically, on two separate occasions between October and December 2021, Chief Engineer Plasabas, who was employed by New Trade, ordered lower-ranking crew members to use a portable pneumatic pump and hose to bypass pollution prevention equipment by transferring oily bilge water from the vessel’s Bilge Holding Tank to the vessel’s Sewage Tank, from where it was discharged directly into the ocean.

Plasabas then caused the ship’s Master to fail to record these improper transfers and overboard discharges in the vessel’s Oil Record Book. Additionally, to create a false and misleading electronic record as if the pollution prevention equipment had been properly used, Plasabas directed lower-ranking crew members to pump clean sea water into the vessel’s Bilge Holding Tank in the same quantity as the amount of oily bilge water that he had ordered transferred to the Sewage Tank. Plasabas then processed the clean sea water through the vessel’s pollution prevention equipment as if it was oily bilge water to make it appear that the pollution prevention equipment was being properly used when in fact it was not. The electronic records indicate that approximately 9,600 gallons of clean sea water were run through the pollution prevention equipment.

“We are committed to protecting our environment from people who cause immeasurable harm with short cuts,” said U.S. Attorney Randy Grossman. “This was a very calculated plan to violate the rules, and today the offenders are being held to account.” Grossman thanked the prosecution team and the U.S. Coast Guard for their excellent work on this case.

“This case demonstrates our commitment to investigating and prosecuting environmental crimes occurring at sea, no matter how wrongdoers may try to cover them up,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The Department of Justice will continue to work with our partner agencies to ensure polluters are held fully accountable.” 

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

New Trade and Plasabas each pleaded guilty to a felony violation of the Act to Prevent Pollution from Ships, for failing to accurately maintain the Longshore’s Oil Record Book. Under the terms of the plea agreement and subject to court approval, New Trade will pay a total fine of $1,100,000 and serve a four-year term of probation, during which any vessels operated by the company and calling on United States’ ports will be required to implement a robust Environmental Compliance Plan. Sentencing for the defendants is currently set for November 18, 2022, at 9:00 am.

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

DEFENDANTS                                             Case Number 22cr1802-JO                              

New Trade Ship Management S.A.

Chief Engineer Dennis Plasabas                     Age: 48                                   Philippines

SUMMARY OF CHARGES

Act to Prevent Pollution from Ships – Title 33, U.S.C., Section 1908(a)

Maximum penalty: not more than Six years in prison and $250,000 fine (individual); not more than Five years of probation and a fine which is the greater of $500,000 or twice the amount of gross gain or loss (organization).

AGENCY

U.S. Coast Guard

Assistant U. S. Attorney Lyndzie M. Carter (619) 546-8780 

NEWS RELEASE SUMMARY – August 9, 2022

SAN DIEGO – Christopher Craig Jones, a prolific drug dealer in San Diego County, was sentenced in federal court to 120 months in prison.

“This is a just sentence for the defendant and reflects the need to protect our community from fentanyl and methamphetamine dealers,” said U.S. Attorney Randy Grossman. “We will continue to work closely with our federal and local law enforcement partners to ensure that prosecutions involving these deadly drugs remains a top enforcement priority.” Grossman thanked the prosecution team and law enforcement agencies for their hard work on this case.

On December 16, 2020, San Diego County Sheriff’s deputies conducted a traffic stop and arrested Jones for possession of methamphetamine and fentanyl with intent to distribute. Then again, on September 8, 2021, Carlsbad Police Department (CAPD) arrested Jones during a traffic stop with possession of fentanyl and heroin with intent to distribute.

Subsequently, Jones was booked into county jail and immediately posted bail. However, less than 24 hours later and wasting no time in returning to criminal drug activity, on September 9, 2021, CAPD conducted a third traffic enforcement stop on Jones, which resulted in the seizure of additional methamphetamine. The follow up investigation, pursuant to a search warrant at the Best Western Hotel in Carlsbad, where Jones had been staying, resulted in the seizure of additional quantities of heroin, methamphetamine and drug paraphernalia.   

Jones, a career offender, with arrests and multiple convictions for drug dealing, entered a guilty plea on May 16, 2022.

“Because of the great police work of our local counterparts, the immeasurable harms that would have been caused by the distribution of drugs in our community were prevented by the arrest and prosecution of Christopher Jones,” said DEA Special Agent in Charge Shelly S. Howe.  “The DEA ensures our local counterparts receive support on investigations that merit federal prosecution.  This case is a prime example of the great working relationship between local and federal agencies in San Diego.”

“At the Carlsbad Police Department, we methodically investigate illegal narcotic possession and illegal narcotic sales with the mission of protecting the community we serve. We take pride in collaborating with our local partners at the DEA, the San Diego Sheriff's Dept and the U.S Attorney’s Office with the common goal of reducing the negative impact brought on by these offenders,” said Assistant Chief Christie Calderwood. “This case is a great success for the agencies involved and the community," she concluded.

“Keeping our communities safe from illegal narcotics and their associated crimes is a continuous mission for the San Diego County Sheriff's Department,” said Anthony C. Ray, Sheriff. “I am grateful to our deputies and detectives who assisted on this case, as well as our robust collaboration with our local, state, and federal partners. This allows us to share critical information that is necessary to hold drug traffickers accountable, as was exemplified in this case.”

DEFENDANT                                               Case Number 22cr00682-BAS                                

Christopher Craig Jones                                             Age: 48                                   Oceanside, CA

SUMMARY OF CHARGES

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

Possession of Fentanyl with Intent to Distribute – 21 U.S.C. §§ 841(a)(1), (b)(1)(C)

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

AGENCY

San Diego County District Attorney’s Office, Major Narcotics, North County

Drug Enforcement Administration, San Diego Field Division

Carlsbad Police Department, Special Investigations Division

San Diego Sheriff’s Department