Southern District of California

Assistant U. S. Attorneys Meghan E. Heesch, Nicholas W. Pilchak, and Eric R. Olah

NEWS RELEASE SUMMARY – August 9, 2022

SAN DIEGO – Charges unsealed today against four individuals, including two San Diego residents, allege that they defrauded a multinational San Diego technology company in its $150 million purchase of a tech start-up controlled by the defendants. 

Karim Arabi (“Karim”) and Ali Akbar Shokouhi were arrested today in San Diego, while Sanjiv Taneja was arrested in the Northern District of California.  A fourth defendant was arrested in Canada, where she faces proceedings to extradite her to the United States.

All four defendants are named in a superseding indictment, which charges them with fraud and money laundering offenses based on the quartet’s alleged scheme to dupe a San Diego technology company (the “victim company”) into paying $150 million for technology that Karim secretly created and provisionally patented while serving as a vice president of research and development at the victim company. The charges subject the defendants to possible maximum statutory penalties of 20 years in prison; fines of $250,000 or twice the pecuniary gain/loss for the fraud charges or $500,000 for the money laundering charges; and the forfeiture of property which constitutes or is derived from proceeds of the fraud offenses and all property traceable to such property, as well as forfeiture of all property involved in the money laundering offenses.

Per the superseding indictment, as Abreezio LLC’s CEO, Taneja marketed Abreezio LLC’s valuable new microchip technology to the victim company in 2015.  Taneja and his associates claimed throughout the marketing process that Abreezio’s valuable new technology was invented by a Canadian graduate student working in an unrelated field.  But no one disclosed that Karim—the graduate student’s family member, and a specialist in the same field as Abreezio’s technology, then working at the victim company—was intimately involved in Abreezio’s formation, development and marketing.  In truth, per court documents, Karim filed the provisional patents upon which Abreezio’s core technology was based; called and attended key operations meetings among the defendants and other Abreezio principals (but not the purported inventor); and choreographed key steps in the new company’s development—including the selection of Taneja as CEO and picking the name “Abreezio.” 

The defendants concealed Karim’s key role in Abreezio from the victim company because, as detailed in the superseding indictment, Karim’s employment agreements provided that his inventions during his employment would belong to his employer, the victim company.  By hiding Karim’s participation in Abreezio, the defendants were able to pitch the new company as “an angel-funded Silicon Valley based design IP start-up” entitled to a hefty fee for its valuable technology, while disguising the victim company’s own legal rights to the very same technology.

The indictment alleges that Karim hid his hand in Abreezio, in part, by creating sham email accounts to impersonate the purported inventor.  Karim, Taneja and Shokouhi even called Karim by the purported inventor’s name in some of their communications to mask Karim’s role. 

Abreezio also relied on Karim to provide important inside information about the victim company’s existing technology, to be used in honing Abreezio’s marketing pitch.  In February 2015, per court documents, Taneja emailed Karim asking for insight on the victim company’s “numbers” for comparable technology then in place to identify “the ‘threshold’ we need to cross at [the victim company]” and “help us calibrate our positioning going in[.]” 

The defendants also worked to hide Shokouhi’s involvement in Abreezio, per charging documents.  Shokouhi had been a vice president at the victim company as recently as 2014, and funded and supported Abreezio’s development via three different entities that he controlled.  One of Shokouhi’s companies was never disclosed to the victim company during due diligence, however—an attempt to avoid scrutiny, in part because the victim company had flagged conflict of interest issues with Shokouhi and the undisclosed company the year before the Abreezio sale.

In October 2015, the victim company purchased Abreezio for $150 million.  As part of the transaction, the victim company was told that Abreezio was the sole and exclusive owner of its technology, and that everyone involved in the conception and development of Abreezio’s intellectual property had been disclosed. In reality, the defendants had carefully concealed Karim’s role from the victim company.  As a result, the victim company paid nearly $92 million to Karim’s family member (the purported inventor), over $10 million to Taneja, and more than $24 million to two entities controlled by Shokouhi.

The indictment also alleges how the defendants laundered the funds they received from the Abreezio purchase, including via foreign real estate purchases and interest-free loans.

“Fraudsters cannot hide behind sophisticated technology or complex schemes,” said U.S. Attorney Randy S. Grossman.  “This office will pursue criminals and their laundered, ill-gotten gains whether they are hidden in a mattress or scattered throughout the international financial system. Those who steal from our community will face justice.”

“Corporate fraud is a serious crime with serious consequences, not only hurting the individual organization, but also impacting shareholders, as well as entire communities,” said Acting Special Agent in Charge Thomas Ryan of the FBI’s San Diego Field Office. “Today's arrests confirm that no matter how criminals try to hide, the FBI will work with our law enforcement partners to fully investigate these crimes – we will uncover the truth; we will find the perpetrators; we will pursue justice for the victims.”

“Intellectual property crime threatens our economic wellbeing, and this indictment demonstrates that we will pursue those who attempt to steal and profit from our nation’s innovations,” said Acting Special Agent in Charge Darren Lian of IRS Criminal Investigation’s Los Angeles Field Office. “Schemes like this not only victimize companies, but also impact our U.S. Patent and Trademark Office and our Civil Courts. IRS Criminal Investigation is proud to work with our law enforcement partners to bring these defendants to justice.”

DEFENDANTS                                                                                          Case Number 22-CR-1152-BAS

Karim Arabi                                                                Age: 56                                               San Diego, CA

Sanjiv Taneja                                                              Age: 59                                               Cupertino, CA

Ali Akbar Shokouhi                                                    Age: 63                                               San Diego, CA

AGENCIES

Federal Bureau of Investigation

Internal Revenue Services, Criminal Investigation

United States Marshals Service

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

Assistant U. S. Attorneys Paul E. Benjamin (619) 546-7579 and Colin M. McDonald (619) 546-9144

NEWS RELEASE SUMMARY – August 9, 2022

SAN DIEGO – Rene Robert Ruiz was sentenced in federal court to 68 months in prison for assaulting a Customs and Border Protection Officer at the San Ysidro Port of Entry when attempting to enter the United States from Mexico.

According to court records and trial testimony, on May 17, 2021, Ruiz walked towards the limit line separating the United States and Mexico at the San Ysidro Port of Entry. He was irate, yelling “f*** you!” at an officer near the line. As he reached the front of the line, Ruiz continued to yell at officers and made no effort to show documents permitting him to enter the United States. An officer told Ruiz he could not enter until he calmed down.

Ruiz responded, “F*** you, I’m a U.S. citizen, I’m coming in,” and attempted to push past the officer into the United States. Concerned for his safety, the officer pushed Ruiz back beyond the limit line. Immediately, Ruiz came back at the officer and punched him in the head with a closed fist. Ruiz then repeatedly struck the officer in the head as the officer attempted to restrain him. The officer suffered a concussion and other injuries because of Ruiz’s assaultive conduct. On October 13, 2021, following a two-day trial, a jury convicted Ruiz of two counts of assault on a federal officer.

At the sentencing hearing yesterday, U.S. District Judge Gonzalo P. Curiel observed that Ruiz attacked an officer who was simply doing his job. Judge Curiel further remarked that Ruiz’s assaultive conduct was the culmination of a thirty-year history of violence and disregard for law enforcement, including his self-admitted leadership role in a violent motorcycle gang. A restitution hearing to determine the financial penalty Ruiz owes to the officer is scheduled for August 29, 2022.

“This defendant viciously attacked a customs officer completing routine duties at the port of entry,” said U.S. Attorney Randy Grossman. “Law enforcement officers—such as the victim here—perform vital services for us all and must be allowed to do their jobs without the risk of harm. The U.S. Attorney’s Office will continue to vigorously prosecute those who place their safety and security at risk.” Grossman commended the excellent work of the prosecution team as well as officers and agents from Customs and Border Protection and Homeland Security Investigations.

“Violent acts like these against our officers will not be tolerated and we are thankful to the San Diego USAO for ensuring justice was served,” said Anne Maricich, acting Director of Field Operations for the San Diego Field Office.

“This case unfortunately serves as yet another example of the dangers encountered by agents and officers along the border,” said HSI San Diego Special Agent in Charge Chad Plantz. “This sentence should serve as a reminder that assaults on the officers who protect our borders will not be tolerated.”

DEFENDANT                                   Case Number 21-cr-02911-GPC                           

Rene Robert Ruiz                               Age: 55                       Residence: San Diego, California

SUMMARY OF CHARGES

8 U.S.C. § 111(a)(1) – Assault on a Federal Officer

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

8 U.S.C. § 111(a)(1) and (b)  – Assault on a Federal Officer Inflicting Bodily Injury

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

AGENCIES

Homeland Security Investigations

Customs and Border Protection

Special Assistant U.S. Attorney Nicole Bredariol (619) 546-8419 and Assistant U.S. Attorney Kevin Mokhtari (619) 546-8402

NEWS RELEASE SUMMARY – August 5, 2022

SAN DIEGO – Miguel Ojeda Agundez, captain of a drug-smuggling boat that rammed a Coast Guard vessel during a dangerous high-speed chase off the shores of San Diego, was sentenced in federal court today to 194 months in prison. 

Ojeda Agundez is the last of four defendants to be sentenced in connection with the event, which occurred in August 2020 off the shores of San Diego. All four defendants were charged in a 15-count federal indictment with trafficking close to 500 pounds of methamphetamine; failure to stop for the Coast Guard; and assault on five Coast Guard officers who were injured as a result of the ramming. Ojeda Agundez ultimately pleaded guilty to all 15 counts. 

At today’s sentencing hearing, U.S. District Judge Janis L. Sammartino described the defendant’s conduct as “egregious” and causing “immeasurable harm to the community.” She noted that members of the Coast Guard are working hard every day “to protect the community that they are sworn to serve…we have tremendous respect and admiration and gratitude to those who serve this country.”

The other defendants - Arturo Velasquez Soto, Luis Parada Reyes, and Juan Diaz Hernandez - were previously sentenced by Judge Sammartino to 14 years, 10 years, and just under nine years in prison, respectively.

On August 8, 2020, the defendants were detected by the United States Coast Guard Cutter FORREST REDNOUR traveling northbound off the shores of San Diego in the middle of the night. When five Coast Guard officers went to intercept the vessel, Ojeda Agundez, who was at the helm, aggressively turned the go-fast vessel towards the Coast Guard and rammed a Coast Guard smallboat, causing damage and injury to Coast Guard officers.  The defendants then led the Coast Guard on a high-speed chase on the open water.   

As the vessel continued closer to shore, U.S. Customs and Border Protection (CBP) Air & Marine Operations took over the pursuit. The defendants’ vessel attempted to ram the CBP vessel as well, but officers were able to bring the defendants’ vessel to a stop.  When law enforcement boarded the vessel, they discovered ice chests filled with close to 500 pounds of methamphetamine.  The defendants were brought to shore and arrested, where the investigation was continued by special agents with Homeland Security Investigations’ Marine Task Force.    

In 2012, a similar sequence of events resulted in the death of Coast Guard Chief Petty Officer Terrell Horne III. In that case, a drug-laden panga intentionally rammed a Coast Guard smallboat off the coast of Santa Barbara, ejecting Chief Petty Officer Horne and another officer into the water. Chief Petty Officer Horne was struck by a propeller in the head and fatally injured.

“This case is a reminder of the heroism, bravery, and professionalism that Coast Guard officials employ on every mission to safeguard the United States from drug smugglers,” said U.S. Attorney Randy Grossman.  “Violence against the Coast Guard will not be tolerated and will be aggressively prosecuted by this office.”  Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“Unfortunately, this is not the first time the lives of our Coast Guard members have been threatened by drug smugglers,” said Rear Admiral Andrew Sugimoto, commander, Coast Guard District 11. “Senior Chief Petty Officer Terrell Horne III was killed during a counter-smuggling operation. Those individuals responsible for taking his life and threatening the lives of other Coast Guard members were held accountable. As a service, we do not take these actions lightly and I trust the decision of the courts to continue to hold these criminals responsible for their continued disregard for life.”

“This case highlights the dangers of maritime drug smuggling,” said HSI San Diego Special Agent in Charge Chad Plantz. “HSI is grateful for its federal, state and local law enforcement partners and servicemembers who despite the dangers, continue to deny transnational criminal organizations the opportunity to carry out their illegal drug smuggling activities. HSI will continue to aggressively investigate criminal organizations who smuggle by sea, air or land.”

DEFENDANTS                                                         Case Number 20cr2509-JLS                       

Miguel Ojeda Agundez                                             Age: 26                                               Mexico

Arturo Velasquez Soto                                               Age: 44                                               Mexico

Jose Luis Parada Reyes                                             Age: 53                                               Mexico           

Juan Diaz Hernandez                                                 Age: 55                                               Mexico                                                          

SUMMARY OF CHARGES

Counts 1-3 (All Defendants)

Conspiracy to Distribute Methamphetamine on Board a Vessel –

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

Maximum Penalty: Life in prison and $10 million fine

Possession with Intent to Distribute Methamphetamine Onboard a Vessel; Aiding and Abetting  –
Title 46, U.S.C., Section 70503, Title 18, U.S.C., Section 2

Maximum Penalty: Life in prison and $10 million fine

Conspiracy to Distribute Methamphetamine Intended for Unlawful Importation  –
Title 21, U.S.C., Sections 959, 960, 963

Maximum Penalty: Life in prison and $10 million fine

Counts 4, 6-15 (Defendant Ojeda Agundez only)

Failure To Heave To

Title 18, U.S.C., Section 2237

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

Assault on a Federal Officer with a Dangerous Weapon

Title 18, U.S.C., Section 111(a)(1)

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

Assault with Intent to Commit Any Felony

Title 18, U.S.C., Section 113(a)(2)

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

Count 5 (Defendants Ojeda Agundez and Velasquez Soto only)

Failure To Heave To

Title 18, U.S.C., Section 2237, Title 18, U.S.C., Section 2

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

AGENCIES

United States Coast Guard

Customs and Border Protection

Homeland Security Investigations

Assistant U. S. Attorney Mark Conover (619) 546-6763   

NEWS RELEASE SUMMARY – August 4, 2022

SAN DIEGO – Chris Benavides, former finance director at La Jolla Music Society, was sentenced in federal court today to 30 months in prison for embezzling more than $650,000 from the non-profit over a 10-year period. Benavides was also ordered to pay a minimum of $650,000 in restitution.

Benavides oversaw the budgeting process and human resources. Over the years he regularly claimed that many staff salary increases were not possible due to budgetary constraints. However, during that same period, Benavides was stealing for himself an average of about $65,000 per year.

Forensic review revealed that over the years Benavides’ theft became more and more sophisticated.  He regularly planned his theft in advance of each fiscal year, budgeting for the amount that he would take over the next 12 months and imbedding those expenses in various budget lines. This ensured that none of the expense lines would show conspicuous variances when reviewed by other staff, board members or auditors. It was also discovered he regularly signed or forged checks for his personal benefit and made false entries in the books to hide what he was doing. 

“Mr. Benavides exploited his position of trust with the La Jolla Music Society by stealing month after month for over a decade,” said U.S. Attorney Randy Grossman. “His greed and deception have had a lasting impact on this non-profit. Today, he has been held to account for his crimes.” Grossman thanked the prosecution team and FBI agents for their excellent work on this case.

“La Jolla Music Society trusted their Director of Finance to safeguard the non-profit’s funds, but Benavides had a different plan,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “Instead, the defendant strategically calculated year over year to systematically steal from his employer, selfishly lining his own pockets. Today’s sentencing sends a clear message to Benavides that he will be held accountable for his crimes, but more than that, it provides justice for the victims, so they can hopefully begin to move forward into a new chapter.”

DEFENDANT                                               Case Number 22cr3042-CAB                           

Chris Benavides                                              Age: 52                       San Diego

SUMMARY OF CHARGES

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

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

AGENCY

Federal Bureau of Investigation

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

NEWS RELEASE SUMMARY – August 1, 2022

SAN DIEGO – Ongkaruck Sripetch was sentenced in federal court to 21 months in prison for participating in illegal securities fraud schemes. 

Sripetch, a resident of Los Angeles who used the aliases “King Richards” and “Shelby Saint-Claire,” pleaded guilty in February. He admitted that he failed to comply with securities regulations requiring that stock offerings be registered with the Securities and Exchange Commission. He also admitted that his relevant conduct included conspiring with his co-defendants to pump-and-dump the stock of two companies: Ottawa, Canada-based VMS Rehab Systems, which claimed to sell “quality of life orthopedic seat cushions for the home healthcare sector,” and Argus Worldwide, a company headquartered in Cheyenne, Wyoming, which purportedly focused on “digital/internet products and services, smart consumer electronic products and health industries.” In reality, the companies did not live up to the defendants’ claims.

Through these pump-and-dump schemes, Sripetch and his co-conspirators artificially inflated the price of these stocks and then sold the stocks to unwitting investors through the public securities markets. 

In handing down the sentence, U.S. District Judge Marilyn L. Huff noted that “real people lost real money” while the “defendant was living a lavish lifestyle” with his fraud proceeds. 

“Pump-and-dump schemes victimize investors who are sold a bill of goods,” said U.S. Attorney Randy Grossman. “But these schemes also erode the integrity of the United States’ securities markets.  This sentence reflects the seriousness of these crimes.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.

“Sripetch learned the hard way that crime does not pay, and today's sentencing should send a clear message to anyone thinking they can get away with defrauding innocent investors for their personal gain,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “The defendant conspired with others to commit securities fraud schemes with total disregard for the consequences. Financial crimes have long been at the forefront of the FBI’s efforts, and we will continue to meticulously investigate any and all fraudsters in pursuit of our mission of protecting the American people.” 

The United States appreciates the assistance provided on this matter by the Securities and Exchange Commission.

DEFENDANT                                               Case Number 20cr0160-H                                

Ongkaruk Sripetch                                          Age: 47                                   Los Angeles, CA

SUMMARY OF CHARGES

Violation of SEC Offering Registration Requirements – Title 15, U.S.C., Section 77e(a)(1)

AGENCY

Federal Bureau of Investigation

Kelly Thornton (619) 546-9726    

NEWS RELEASE SUMMARY – August 1, 2022

SAN DIEGO – Veteran federal prosecutor Andrew R. Haden today became second-in-command of the United States Attorney’s Office for the Southern District of California, one of the busiest federal districts in the nation.

Haden, who was selected by U.S. Attorney Randy Grossman, was promoted to fill the vacancy created by the departure of David Leshner.  Leshner – a 15-year veteran of the U.S. Attorney’s Office – was recently selected to become a United States Magistrate Judge for the Southern District of California.

As First Assistant U.S. Attorney, Haden will oversee the day-to-day operations of the office and serve as a trusted advisor to the U.S. Attorney.

Haden is a career federal prosecutor. He joined the U.S. Attorney’s Office in 2010, after being selected through the Attorney General’s Honors Program.  During his almost-12 years in the San Diego office, Haden has worked in the General Crimes Section, as a Deputy Chief in both the Reactive and Major Crimes Sections, as the Chief of the Violent Crimes & Human Trafficking Section, and most recently as the Chief of the Criminal Division.

During those assignments, he established himself as a trial lawyer who is passionate about firearms offenses and crimes against children. In 2020, Haden received the nationwide Director’s Award for Superior Performance in a Managerial or Supervisory role from the Executive Office for United States Attorney’s for “extraordinary leadership contributions” to the Department of Justice from 2016-2019. Prior to joining the U.S. Attorney’s Office, Haden served as a law clerk for U.S. District Judge Thomas J. Whelan in the Southern District of California.

“We are thrilled that Andrew has agreed to accept this important role,” U.S. Attorney Grossman said. “Andrew’s strong leadership skills, deep and diverse experience as a prosecutor and his exceptional judgment and strength of character will serve him and our district well as First Assistant U.S. Attorney.”

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

The U.S. Attorney’s Office enforces federal criminal laws in the Southern District of California, which includes San Diego and Imperial counties, and represents the federal government in civil litigation.  The office is composed of approximately 140 Assistant U.S. Attorneys and 145 staff members.

Assistant U. S. Attorneys Mario Peia and Alexandra F. Foster (619) 546-9706/6735

NEWS RELEASE SUMMARY – July 28, 2022

SAN DIEGO – Luis Armando Dorantes Rivera Jr. of Tijuana pleaded guilty in federal court today for his role in the kidnapping of Miguel Anthony Rendon, a U.S. citizen, which resulted in Rendon’s death. 

Dorantes pleaded guilty before U.S. Magistrate Judge Andrew G. Schopler to Hostage Taking, in violation of 18 U.S.C. § 1203. Dorantes is the third defendant to plead guilty in connection with this crime, after Alan Lomeli-Luna and Wyatt Valencia-Pacheco.

In his plea agreement, Dorantes admitted that on May 29, 2020, at approximately 11:50 p.m., Dorantes and others forcibly removed the victim, Miguel Anthony Rendon, from his hotel room in Tijuana, Mexico. Dorantes and others punched, kicked, and pistol-whipped Rendon. Once subdued, Dorantes and others placed Rendon in a waiting car and drove away.

Dorantes’ co-conspirators then took Rendon to another hotel in Tijuana, Mexico. There, while Rendon was held and detained, Dorantes’ co-conspirators called Rendon’s family and made ransom demands for Rendon’s release. Specifically, Dorantes’ co-conspirators demanded $2,000 to $3,000 or methamphetamine in exchange for Rendon’s release.

On or about May 30, 2020, Dorantes’ co-conspirators intentionally killed Rendon.

“This is a tragic case where a young man paid the ultimate price for getting involved with the wrong people, and his family is forever devastated,” said U.S. Attorney Randy Grossman. “Drug traffickers don’t hesitate to use extreme violence. We will not hesitate to seek justice for victims.”  Grossman thanked the prosecution team as well as the investigating FBI agents for their excellent work on this case.

“Dorantes’ guilty plea confirms the FBI’s commitment to fully investigating violent crimes against U.S. citizens abroad and ensuring everyone involved in the senseless killing of victim Miguel Anthony Rendon is held accountable,” said Special Agent in Charge Stacey Moy of the FBI's San Diego Field Office. “This case shines a light on the disregard for human life these defendants had assuming they were outside U.S. jurisdiction and U.S. law enforcement. No defendant is safe from the FBI’s reach. We will pursue any criminal around the world to ensure justice is served – today’s guilty plea is another example.”

Dorantes is scheduled to be sentenced October 31, 2022, at 9 a.m. before U.S. District Court Judge William Q. Hayes. Valencia-Pacheco is scheduled to be sentenced on October 3, 2022 at 9 a.m. and Lomeli-Luna is scheduled to be sentenced on September 12, 2022 at 9 a.m., also before Judge Hayes.

DEFENDANTS                                            Case Number 21CR1683-WQH

Luis Armando Dorantes Rivera, Jr.,

aka “Gordo Rivera”                                                    Age: 26            Tijuana

SUMMARY OF CHARGE

18 U.S.C. Sec. 1203 - Hostage Taking

Maximum Penalty: Life in prison

INVESTIGATING AGENCY

Federal Bureau of Investigation

Assistant U. S. Attorneys Joseph Green (619) 546-6955 and Alexandra F. Foster (619) 546-6735

NEWS RELEASE SUMMARY – July 26, 2022

SAN DIEGO – Adult website operator Matthew Isaac Wolfe pleaded guilty in federal court today to conspiring to fraudulently coerce young women to appear in sex videos on the GirlsDoPorn and GirlsDoToys websites.

Wolfe pleaded guilty before U.S. Magistrate Judge Barbara L. Major to Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, in violation of 18 U.S.C. § 1594. Wolfe, the fourth defendant to plead guilty in connection with the case, admitted that he moved to the United States in 2011 to work for his friend and co-defendant Michael Pratt, the owner of the GirlsDoPorn website. Wolfe had a wide range of responsibilities. Wolfe filmed approximately one hundred videos, he uploaded finished videos onto the internet, he oversaw the company’s financial books, and he operated various business entities that were used to promote the business. Wolfe worked at GirlsDoPorn from 2011 until his arrest in October 2019.

To persuade women to appear in the videos, Wolfe admitted to telling women that the videos would never be posted on-line, that the videos would never be released in the United States, and that no one who knew the women would ever find out about the videos, representations that he knew false, because the videos were exclusively marketed and distributed on the internet. Wolfe trained co-defendant Theodore Gyi, a cameraman, on how to run video shoots and told Gyi that, if asked, to tell the women that the videos would not be posted on the internet.

Wolfe also admitted that he was aware that personal identifying information and social media accounts for some women were being posted on pornwikileaks.com, a site controlled by Pratt and dedicated to “exposing” the true identities of individuals appearing in sex videos, causing the victims to be subjected to severe harassment. Even after Wolfe became aware of this, he and others continued to assure prospective models that no one would ever find out about their video shoot or learn their identity.

“This crime had a devastating impact on the victims,” said U.S. Attorney Randy Grossman. “We will seek justice for human trafficking victims in hopes that it will help them reclaim their lives and leave the pain of this experience in the past.” Grossman commended the prosecution team as well as FBI agents and members of the San Diego Human Trafficking Task Force for their continuing effort to investigate and prosecute this important case.

“Wolfe lied to and preyed on vulnerable young women, subjecting them to years of relentless harassment, fear and mental anguish,” said Stacey Moy, special agent in charge of the FBI San Diego Field Office. “Identifying, investigating, and apprehending sex trafficking offenders is a critical part of our mission. We will continue to work with our partners every day to hold these perpetrators accountable for their crimes.”

Wolfe is scheduled to be sentenced by U.S. District Judge Janis L. Sammartino on October 10, 2022, at 9 a.m.

Any additional victims of the alleged crime are encouraged to call the San Diego FBI at 858-320-1800.

The FBI is offering a reward of up to $50,000 for information leading to the arrest of Michael James Pratt. Individuals with information about Pratt should contact their local FBI office or the nearest American Embassy or Consulate.

For further information, please see:

• Wanted Poster: https://www.fbi.gov/wanted/additional/michael-james-pratt
•  Press Release:  https://www.fbi.gov/contact-us/field-offices/sandiego/news/press-releases/fbi-seeks-public-assistance-in-locating-sex-trafficking-suspect

DEFENDANT                                            Case Number 19cr4488-JLS                                    

Matthew Isaac Wolfe                                      Age     40                             San Diego, CA*

Pleaded guilty to count 1

CO-DEFENDANTS

Michael James Pratt                                       Age:     39                             Fugitive

Ruben Andre Garcia                                       Age:    33                             San Diego, CA**

**Pleaded guilty to Counts 1 and 7

Valorie Moser                                                 Age:    39                             San Diego, CA***

Theodore Wilfred Gyi                                    Age:    44                    Aliso Viejo, CA***

***Pleaded guilty to a Superseding Information charging Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, in violation of 18 U.S.C. § 371.

SUMMARY OF CHARGES

Count 1 (charging all defendants)

Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1594(c)

Maximum Penalty:  Life in prison, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.

Count 2 (Pratt)

Production of Child Pornography, 18 U.S.C. § 2251(a) and (e)

Minimum penalty: Fifteen years in prison; Maximum penalty: 30 years in custody, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.

Count 3 (Pratt)

Sex Trafficking of a Minor by Force, Fraud and Coercion, 18 U.S.C. § 1591(a)(1) and (2)

Minimum penalty: Fifteen years in prison; Maximum penalty: life in custody, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014

Counts 4 (Pratt, Wolfe, Garcia), 5 (Pratt, Garcia), 6 (Pratt, Wolfe, Garcia), 7 (Pratt, Garcia, Gyi), 8 (Pratt, Garcia, Gyi)

Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1591(a) and (b)(1)

Minimum penalty: Fifteen years in prison; Maximum penalty: life in custody, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014

INVESTIGATING AGENCY

FBI

San Diego Human Trafficking Task Force

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

Assistant U. S. Attorney Jessica Schulberg (619) 546-9664   

NEWS RELEASE SUMMARY – July 19, 2022

SAN DIEGO – Alexis Benito Nuno of Tijuana was charged in federal court today in connection with the alleged smuggling of approximately 249 pounds of fentanyl into the U.S.

Nuno was driving a 2015 Black GMC Sierra truck on eastbound Interstate 8, about 300 yards east of the Crestwood on-ramp near the Golden Acorn Casino when he was stopped by U.S. Border Patrol agents around 3 a.m. During the traffic stop, a Border Patrol dog, named “Huno,” alerted to the vehicle, indicating the presence of drugs.

Agents stopped Nuno’s vehicle, in part, because he had previously been encountered at a nearby checkpoint a week earlier, on July 11, 2022, and agents noticed that he appeared nervous and his vehicle’s gas tank showed signs of tampering. According to a federal complaint, during a traffic stop on July 18, 2022, agents found 108 packages of suspected M30 Fentanyl pills hidden in the gas tank and spare tire with a total weight of 113.20 kilograms (249.04 pounds). The packages from the spare tire were wrapped in clear plastic bags with no markings or labels. The packages from the gas tank were wrapped in clear vacuum sealed bags with no markings or labels. The contents tested positive at the scene for fentanyl.

Nuno was arrested. He made his first appearance in federal court this afternoon.

“Stopping the flow of fentanyl into the U.S. is among our highest priorities,” said U.S. Attorney Randy Grossman. “This deadly drug is fueling a public health crisis that is destroying families. It’s always a good result when fentanyl is intercepted, particularly this massive amount.” Grossman thanked the prosecution team and vigilant Border Patrol and DEA agents for working hard to keep fentanyl off the streets.

DEFENDANT                                               Case Number 22mj2400                                   

Alexis Benito Nuno                                        Age: 24                                   Tijuana, MX

SUMMARY OF CHARGES

Possession with Intent to Distribute a Controlled Substance – Title 21, U.S.C., Section 841(a)(l)

Maximum penalty: Twenty  years in prison

AGENCY

United States Border Patrol

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. Attorneys Amanda L. Griffith (619) 546-8970 & Andrew Sherwood (619) 546-9690   

NEWS RELEASE SUMMARY – July 18, 2022

SAN DIEGO – Daniel Dasko - a teacher’s aide, substitute teacher and youth hockey coach of elementary and middle school children in San Diego - was arrested by the FBI and charged in federal court with distribution of child pornography.

Dasko was arrested at his home on July 13. He made an initial appearance in federal court on July 14 before U.S. Magistrate Judge Daniel Butcher and was ordered detained pending trial. According to a federal complaint, Dasko is charged with Distribution of Images of Minors Engaged in Sexually Explicit Conduct.

Dasko’s alleged illicit activity was discovered during the course of another investigation that began in Philadelphia in July 2021, when the Philadelphia Division of the FBI received a cyber tip via the National Center for Missing and Exploited Children regarding a man who was uploading child pornography. The subject was identified as a teacher in the Philadelphia area.

FBI Philadelphia executed a search warrant on the Philadelphia subject’s residence. A review of the subject’s iPhone revealed numerous conversations regarding child pornography using a social media application, both trading and producing images by baiting minor victims to send nude photos or videos or to go live online and be screen-recorded. The Philadelphia subject and other coconspirators would pose as females on social media sites in order to chat with the victims.

The complaint said investigators continued their review of the communications on the social media application in order to identify additional targets. One of those targets, using the name “Mr. Pickles,” was communicating with the Philadelphia subject from at least October 3, 2020 to October 3, 2021, during which time they exchanged over 3,671 messages, to include numerous of image and video files.

According to the complaint, the majority of these messages were conversations about sexually exploiting children they knew or met online. The complaint contains excerpts of some of the sexually-explicit electronic communications between the Philadelphia subject and Mr. Pickles in which they discuss their attraction to young boys. 

Based on the investigation, the FBI believed Dasko was Mr. Pickles and obtained federal search warrants to search Dasko’s San Diego residence and person for child exploitation crimes. On July 13, 2022, those were executed. Following the advisal and waiver of his Miranda rights, Dasko agreed to speak with agents about his online activities. He admitted he was Mr. Pickles and the user of the social media account.

Victims or anyone with information about this case is encouraged to call the FBI San Diego Field Office at 858-320-1800 or submit a tip at tips.fbi.gov. Tips can be anonymous. 

“There is nothing more important than keeping our children safe from sexual abuse and exploitation,” said U.S. Attorney Randy Grossman. “Social media makes this a very challenging endeavor, but we will do everything in our power to protect kids from online predators who use technology to target and trick them.” Grossman thanked the prosecution team and the FBI for their excellent work in this case.

“Our children should be protected, not preyed upon,” said Stacey Moy, special agent in charge of the FBI San Diego Field Office. “Crimes against children remain a priority for the FBI. We will continue to aggressively investigate any matter where persons prey on our children, and work with our partners to get these predators removed from our community.”

DEFENDANT                                               Case Number 22MJ2515                                         

Daniel Dasko                                                  Age: 30                       Carlsbad, CA

SUMMARY OF CHARGES

Title 18, U.S.C. § 2252(a)(2) – Distribution of Images of Minors Engaged in Sexually Explicit Conduct

Maximum penalty: Twenty years in prison, five-year mandatory minimum

AGENCY

FBI

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

Two more members of a network that operated and facilitated a large-scale “grandparent scam” pleaded guilty today to racketeering conspiracy.

Lyda Harris, 74, of Laveen, Arizona, pleaded guilty in federal court Thursday after being extradited to the United States from Albania on Nov. 12, 2021. Tracy Glinton, 35, of Orlando, Florida, pleaded guilty on June 9. Of the eight defendants indicted in this case, six were arrested; all six have now pleaded guilty. The remaining two defendants remain at-large.

According to court documents, the defendants were members and associates of a network of individuals who, through extortion and fraud, induced elderly Americans across the United States to pay thousands to tens of thousands of dollars each to purportedly help their grandchild or other close family relative. 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 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, mail and wire transfer, and laundered the proceeds, including through cryptocurrency.

“The Department of Justice’s Consumer Protection Branch will continue to investigate and prosecute criminals who target elderly Americans and take advantage of their concern for loved ones,” said Principal Deputy Assistant Attorney General Brian M. 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 in advancing the department’s efforts against organized elder fraud, and to the San Diego County District Attorney’s Office.”

“These defendants were part of a sophisticated criminal organization that exploited the tremendous love a grandparent has for a grandchild,” said U.S. Attorney Randy Grossman for the Southern District of California. “The victims were financially and emotionally devastated by callous people who thought only of enriching themselves. Because of the diligence of our prosecution team and law enforcement partners, these defendants have been brought to justice.”

“Scammers continue to target our elderly population at an ever-increasing rate across the country. These defendants intentionally preyed upon and systematically stole from their victims without a second thought,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “These guilty pleas send a clear message that the FBI is committed to identifying, investigating, and bringing to justice those who are committing financial crimes. The FBI will continue to work with our partners on the San Diego’s Elder Justice Task Force to protect our elders.”

Harris and Glinton pleaded guilty to conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act. Harris is scheduled to be sentenced on September 30, 2022; Glinton is scheduled to be sentenced on Sept. 9. Each faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Two additional defendants have been charged but have not been arrested.

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

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

The department’s extensive and broad-based efforts to combat elder fraud seeks 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 open Monday through Friday from 10:00 a.m. to 6:00 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.

Assistant U.S. Attorney Blanca Quintero (619) 546-7118

NEWS RELEASE SUMMARY – July 8, 2022                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

SAN DIEGO – Four men were charged today with federal drug trafficking offenses following the seizure of more than 5,000 pounds of methamphetamine discovered already inside the U.S. in two trucks in National City, California. This is believed to be one of the largest methamphetamine seizures in San Diego County.

The complaint alleges that on July 7, 2022, at approximately 4:55 p.m., a commercial 20-foot box truck crossed into the United States through the Otay Mesa Commercial Port of Entry. Law enforcement surveilled the box truck as it travelled to Hoover and 30th Street, in National City. Once there, agents observed the defendants unloading dozens of cardboard boxes from the box truck and loading them into a Dodge van. Law enforcement then apprehended the defendants, Rafael Alzua, Mario Contreras, Ethgar Velazquez, and Galdrino Contreras and discovered inside the boxes approximately 148 bundles of a substance that field tested positive for methamphetamine. The methamphetamine, in total, weighed more 5,000 pounds.

“This is a significant accomplishment by our law enforcement partners,” said U.S. Attorney Randy Grossman. “Due to stellar work by law enforcement agents, the government stopped more than 5,000 pounds of methamphetamine from being distributed on our streets.”

“This monumental seizure represents another win against drug cartels that fuel addiction in the United States,” said DEA Special Agent in Charge Shelly S. Howe. “Because of our great partnerships with other law enforcement agencies, we will continue to disrupt the cartels’ flow of drugs into our cities.”

“I am grateful for the hard work, vigilance, and steadfast dedication of our Sheriff's Detectives, as well as our local, state and federal partners,” said Sheriff Anthony C. Ray. “Our partnership and collaboration allow us to share information that is absolutely critical in keeping drugs from entering our streets and holding drug traffickers accountable.”

The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

Defendant Information

Defendant                                                                                   Criminal Case No: 22-mj-02450-MDD

Defendant Number

Name

Age

Hometown

1

Rafael Alzua

37

Tijuana

2

Mario Contreras

41

Tijuana

3

Ethgar Velazquez

44

Tijuana

4

Galdrino Contreras

41

Tijuana

Summary Of Charges

Conspiracy to Distribute Methamphetamine, in violation of Title 21 U.S.C. §§ 841(a)(1) and 846.

Maximum Penalty: Mandatory minimum 10 years and up to life imprisonment, $10 million fine.

AGENCIES

Drug Enforcement Administration

San Diego County Sheriff’s Department

Border Crime Suppression Team

Homeland Security Investigations

United States Border Patrol

SAN DIEGO – Two more members of a nationwide “grandparent scam” network have pleaded guilty to conspiracy charges under the Racketeer Influenced and Corrupt Organizations Act known as RICO.

Lyda Harris of Laveen, Arizona, pleaded guilty in federal court today; Tracy Glinton of Orlando, Florida, pleaded guilty on June 9, 2022. They are the fifth and sixth of eight defendants to plead guilty; two remain fugitives.

According to court documents, the defendants were members and associates of 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 and 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.

Defendant Lyda Harris was arrested in the Republic of Albania in August 2021 and extradited to the United States.  According to Harris’s plea agreement, she received and funneled victim proceeds for a coconspirator to convert from fiat currency to cryptocurrency.  As part of the guilty plea, Harris agreed to forfeit $6,243 in proceeds she personally received from the offense.  Harris will also be subject to an order of restitution to the victims of the offense in the amount of at least $1,208,291.93.

According to defendant Tracy Glinton’s plea agreement, Glinton’s primary role was helping codefendant Tracy Knowles receive proceeds from coconspirators who obtained victim money.  Glinton knew that the money she received for Knowles constituted proceeds of grandparent scams.  In their phone messages, Glinton and Knowles discussed the “grandma scam.”  As part of her guilty plea, Glinton agreed to forfeit $9,950 in proceeds she personally received from the offense and pay at least $471,600 to the victims in restitution.

“The defendants participated in a sophisticated conspiracy that exploited our nation’s most vulnerable citizens,” said U.S. Attorney Randy Grossman. “The elderly victims were financially and emotionally shattered by these heartless crimes. Fortunately, the coordinated efforts of our prosecution team and law enforcement partners held the defendants accountable and obtained justice for their victims.”  Grossman commended the Assistant U.S. Attorney and law enforcement agents who diligently pursued this matter.  

“Scammers continue to target our elderly population at an ever-increasing rate across the country. These defendants intentionally preyed upon and systematically stole from their victims without a second thought,” said FBI Special Agent in Charge Stacey Moy. “Today’s guilty pleas send a clear message that the FBI is committed to identifying, investigating, and bringing to justice those who are committing financial crimes. The FBI will continue to work with our partners on the San Diego’s Elder Justice Task Force to protect our elders.”

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, established in February 2021, is believed to be the first comprehensive law enforcement effort for this purpose anywhere in the country. The case was prosecuted by the U.S. Attorney’s Office and the Department of Justice’s Consumer Protection Branch.

DEFENDANTS                                             Case Number 21cr2216-CAB                                       

Tracy Adrine Knowles                                   30        Orlando, Florida

Fugitive                                                      

Adonis Alexis Butler Wong                           30        Northbay Village, Florida

Fugitive

Timothy Ingram, AKA Bleezy                       29        North Hollywood, California

In custody.  Sentencing set for July 29, 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 19, 2022

Jack Owuor                                                     25        Paramount, California                                           

Released on bond.  Sentencing set for August 17, 2022. 

Tracy Glinton                                                 35        Orlando, Florida

Released on bond. Sentencing set for September 2, 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

AGENCIES

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

SAN DIEGO - Kaylar Junior Tawan Beltranlap of San Diego pleaded guilty today to distributing a counterfeit oxycodone pill laced with fentanyl that killed a 15-year-old Coronado High School sophomore, referred to in court records as C.J.S., on May 12, 2021.

During the change of plea hearing, Beltranlap admitted to utilizing his Instagram account to coordinating a drug transaction with C.J.S. Beltranlap warned C.J.S. to only take half the pill because it was “strong.” Law enforcement responded on May 13, 2021 after learning of C.J.S.’s fatal overdose. Beltranlap was arrested the next day carrying five pills, which also turned out to be counterfeit oxycodone pills laced with fentanyl. In the plea agreement, Beltranlap and the Government stipulated that the Sentencing Guidelines for distribution of a controlled substance resulting in death and/or serious bodily injury will apply.

“C.J.S.’s tragic death must not be in vain. We need to continue to educate our middle and high school age children about the dangers of counterfeit fentanyl pills,” said U.S. Attorney Randy Grossman. “Our office will continue to pursue these cases to ensure that those who peddle this poison to youth face the full measure of federal prosecution.”

“C.J.S. was child and a member of our community. We know this will not make the family whole but we appreciate the multi-agency collaboration that went into holding this offender accountable.” said Coronado Police Chief Chuck Kaye.

“Parents: I’m pleading with you to please talk to your child – no matter their age - about the dangers of taking a pill that didn’t come from a doctor or pharmacist. Although difficult, this conversation could save your child’s life.” said DEA Special Agent in Charge Shelly S. Howe.

Beltranlap is scheduled to be sentenced on September 30, 2022, at 9:00 a.m. before U.S. District Court Judge Cathy Ann Bencivengo.

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

DEFENDANT                                                                              Case Number 21-CR-3442 CAB
Kaylar Junior Tawan Beltranlap                                                  Age: 21               San Diego, CA

SUMMARY OF CHARGES
Distribute of Fentanyl – Title 21, United States Code, Sections 841(a)
Maximum penalty: 20 years in prison

AGENCY
Drug Enforcement Administration
Homeland Security Investigations
Federal Bureau of Investigation
Coronado Police Department
San Diego Police Department
California Department of Health Care Services

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

SAN DIEGO—Today Jesus Vazquez Padilla and his sister Monica Vazquez were indicted for laundering more than $42 million of drug trafficking proceeds through the financial system in the United States.

Special Agents from the Internal Revenue Service (“IRS”) led the investigation into hundreds of financial transactions by the sibling duo between 2015 and 2019.  Using approximately 85 United States bank accounts belonging to at least 22 California-based ‘shell’ corporations, Padilla and Vazquez deposited cash proceeds of drug sales into U.S.-based bank accounts and layered those deposits across multiple corporate accounts before finally transferring the funds to accounts in Mexican-based financial institutions.

For example, the indictment alleges that Defendants served as corporate officers for two San Diego-based corporations, OSVA Incorporated and Jeva International, Inc..  As corporate officers, they opened corporate bank accounts in U.S.-based financial institutions and, on various dates in 2017, deposited large cash amounts before finally transferring those funds to Mexico.

In total, the indictment contends that the siblings laundered $42,276,668, transferred approximately 95% of those funds to Mexico, and retained the remainder as payment for their services.

“Jesus Vazquez Padilla and his sister Monica Vazquez are charged with directing millions of dollars in drug trafficking proceeds through U.S. Banks and into the hands of drug trafficking organizations,” said U.S. Attorney Randy S. Grossman.  “Today’s indictment shows that the United States will prosecute not only those who traffic in drugs but also those who enable drug traffickers through sophisticated shell corporations, false tax returns, and multiple bank accounts.” Grossman praised the prosecutors and agents from IRS Criminal Investigation, the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), and the San Diego Police Department for their diligent work on this case.

“Today’s indictment of the sibling defendants demonstrates our commitment to disrupting professional enablers who corrupt the U.S. financial system to launder the proceeds of deadly and illegal drugs,” said IRS Criminal Investigation Special Agent in Charge Ryan L. Korner of the Los Angeles Field Office. “The defendants not only created fake businesses to move drug money offshore, but also attempted to legitimize their scheme by filing false tax returns. IRS Criminal Investigation is proud to lead the Financial Investigations and Border Crimes Task Force and work with our law enforcement partners on this international money laundering investigation.”

“The allegations described in the indictment demonstrate criminal behavior designed to use our nation’s financial system against us,” said Federal Deposit Insurance Corporation Office of Inspector General Special Agent in Charge Jeffrey D. Pittano. “FDIC OIG will continue to work with our law enforcement partners to investigate allegations of laundering and other significant crimes impacting our nation’s financial institutions.”

“The San Diego Police Department is proud of its contributions to this federal task force,” said Chief David Nisleit. “These types of partnerships enable law enforcement to better address organized crime.”

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

DEFENDANTS                                             Case Number 22cr1551RBM                                              

Jesus Vazquez Padilla, Tijuana, Mexico, Age: 50

Monica Vazquez, Chula Vista, California, Age: 48

SUMMARY OF CHARGES

Conspiracy to Operate an Unlicensed Money Transmitting Business—Title 18, U.S.C., Section 371

Conspiracy to Launder Money—Title 18, U.S.C. Section 1956(h)

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

Maximum penalty: Twenty years imprisonment and $500,000 fine or twice the value of the funds involved in the transportation, transmission, or transfer, whichever is greater

AGENCY

Internal Revenue Service Criminal Investigation

Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG)

San Diego Police Department

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

 

SAN DIEGO – This morning, Ashleigh Lynn Chavez was sentenced to serve 24 additional months in prison for obstruction of justice by forging doctors’ notes falsely indicating she had been diagnosed with cancer and causing these notes to be submitted to the federal judge.

U.S. District Judge Anthony J. Battaglia had previously sentenced Chavez to serve 12 months and 1 day in federal prison for her conspiracy to embezzle more than $160,000 from a former employer. From the time of her guilty plea in that case in 2019 through her sentencing hearing on March 31, 2021, Chavez was permitted to remain out of custody on bond. 

On the eve of her sentencing, Chavez, 38, created a doctor’s note that falsely claimed that a biopsy had revealed “cancerous cells” in her uterus.  She forged the signature of her doctor on this letter.  Chavez provided the note to her attorney who, believing it to be genuine, submitted it to the court and to the assigned prosecutor in a bid for leniency.  As a direct result of the forged doctor’s note she had caused her attorney to submit, Chavez was permitted to remain out of custody for an additional three months so that she could allegedly receive medical treatment. 

As detailed in her plea agreement, after her sentencing hearing Chavez hired a new attorney whom she provided with additional forged letters from two different San Diego-area physicians.  The new attorney, also believing the letters to be genuine, submitted them to the assigned prosecutor and to the court. 

One forged letter, purporting to be from an oncologist, said: “Ashleigh has limitations due to uterine cancer and future need for radiation.” Other letters indicated that she was undergoing a surgical procedure, that she had been admitted to the hospital, and that her “condition has progressed… to Stage II; the cancer has spread to the cervix.”  One letter warned that “she cannot be exposed to COVID-19” because of her fragile state.  In August 2021, Chavez was purportedly scheduled to begin chemotherapy.  Her attorney contacted the assigned prosecutor and indicated that she was too ill to work, and that as a result she needed to be relieved of monthly restitution obligations to the victim in her previous case. 

By August 2021, the notes forged by Chavez were overtly recommending that the court reconsider her prison sentence and instead permit her to serve time on home confinement.  In one forged note attributed to a San Diego-area oncologist, Chavez wrote that “(a) year in prison could be a death sentence for my patient… I highly recommend the chance to allow home confinement or anything else that you deem appropriate rather than a year in prison.” Two weeks later, she forged a note from the same oncologist stating that “Ashleigh’s cancer, it has in fact metastasized affecting the lymph nodes… I recommend a different approach to her sentencing.”

In fact, Chavez was never diagnosed with or treated for cancer by either doctor. Both doctors denied writing any of the letters attributed to them.  While Chavez had been a patient of one, the second doctor had never heard of her and had no idea how or why his identity had been stolen and his signature repeatedly forged by Chavez.  In total, Chavez was able to delay serving her sentence for six months prior to her fraud being exposed.  During that time, Chavez paid zero restitution to the victim of her embezzlement.

“The defendant obstructed justice by committing a fraud on the federal court,” said U.S. Attorney Grossman. “The lengthy sentence in this case – double the prison term that she initially received – demonstrates just how ill-advised it was for this defendant to attempt to delay the payment of her debt to society.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.

“This defendant went to appalling lengths to avoid her initial prison sentence by falsifying medical documents to claim she had cancer. This offensive conduct is an affront to every person fighting that battle,” said FBI Special Agent in Charge Stacey Moy. “This additional sentence demonstrates to criminals that the FBI takes all fraud seriously, and trying to cheat the system will only result in additional prison time.”

DEFENDANT                                               Case No. 22-CR-0318-AJB                                                    

ASHLEIGH LYNN CHAVEZ                       Age 37            Chula Vista, CA

     aka “Ashleigh Lynn Coulson”

     aka “Ashleigh Chavez Coulson”

SUMMARY OF CHARGES

Obstruction of Justice – Title 18, U.S.C., Section 1503

Maximum penalty: Ten years in custody and a $250,000 fine.

AGENCIES

Federal Bureau of Investigation

 

SAN DIEGO – In response to recent violent shootings, online white supremacist rhetoric, and a significant increase in hate crimes, U.S. Attorney Randy Grossman today gathered key law enforcement and community leaders for a briefing that included a threat assessment, an overview of pre-attack indicators and the best ways to report and mitigate threats. 

Grossman was joined by DHS officials in Washington, D.C., Marcus Coleman, Director of the DHS Faith Based and Community Relations Program, and Dominic Cucciarre, Team Lead in the DHS Office of Intelligence and Analysis, Counterterrorism Mission Center, several local law enforcement leaders, including Curtis Jones, Deputy National Sector Chief, FBI - InfraGard Program, San Diego Police Department Chief Dave Nisleit, Assistant District Attorney Dwain Woodley, FBI Supervisory Special Agent Renee Green, and two Fusion Center Senior Intelligence Analysts, as well as more than a dozen stakeholders who work in  Southeast San Diego, including leaders of the San Diego Organizing Project, which requested the briefing.

“While the combination of hateful online rhetoric and access to firearms presents a chilling challenge, prevention through partnerships has saved lives, both nationally and here in San Diego,” said U.S. Attorney Randy Grossman. “Violent remarks by online extremists have resulted in public ‘tip’ reports to law enforcement, followed by a gun violence restraining order and successful federal prosecution. To ensure this prevention strategy is repeated, it is essential to arm our community leaders with information.”

“It’s important that the community members know they are not alone in this battle against radical extremism, hateful threats and targeted gun violence: federal, state and local law enforcement agencies are with you, ready to assist in every way possible,” Grossman added. “We want to work hand in hand with you to keep your loved ones and community safe.”

“Our faith and nonprofit leaders are often in the best position to notice and report suspicious behavior,” Marcus Coleman stated. “We need to ensure they are briefed on the latest intelligence so they can better identify pre-attack indicators and contact law enforcement.”

 

SAN DIEGO – Shahram “Sean” Sheikhan and Sabriana Williams pleaded guilty in federal court today to drug distribution charges, the latest individuals convicted as part of an ongoing investigation by federal and state authorities targeting unlicensed, illegal marijuana dispensaries throughout Southern California.

From at least 2019 through 2022, Sheikhan and Williams, along with others, operated an unlicensed, illegal marijuana business known as “Cannaland,” which functioned primarily as a wholesale supplier of marijuana and marijuana products to unlicensed and illegal marijuana dispensaries in Southern California. Additionally, Cannaland operated as an unlicensed, illegal marijuana dispensary in its own right, serving individual customers.

In April 2021, law enforcement executed a search warrant at Cannaland, which at the time was located at 10630 Willie Baker Way in Spring Valley, California. During the execution of the search warrant, more than 3,000 pounds of marijuana was seized, with an estimated street value in excess of $6 million, along with five firearms. Following the search warrant, Sheikhan and Williams personally coordinated and facilitated the procurement of replacement firearms for the business’ armed security guards and continued to operate their business and distribute vast amounts of marijuana. As part of their plea agreements, Sheikhan and Williams admitted the amount of marijuana products distributed during the course of the conspiracy exceeded 3,000 kilograms.

Sheikhan and Williams join several others who have pleaded guilty to various drug, firearm, and money laundering charges in federal court as part of this investigation.

“Over the last two years, federal and state law enforcement targeted the operation of dozens of illegal, unlicensed marijuana dispensaries in San Diego County in order to enforce the law and curtail the related crime alleged in this case,” Grossman said. He thanked the prosecution team and the investigating agencies for their efforts to protect the community.

“The FBI is committed to keeping our communities safe from the vast array of violent crimes and criminal activity which accompanies these illegal establishments,” said FBI Special Agent in Charge Stacey Moy. “I want to thank our law enforcement partners at the San Diego County Sheriff’s Department, the San Diego Police Department, the Chula Vista Police Department, the Internal Revenue Service, the United States Attorney’s Office for the Southern District of California, and the San Diego County District Attorney’s Office for their commitment and collaboration on these cases. It’s these ongoing partnerships which enable law enforcement from around the county to be agile and able to handle these types of cases using a variety of investigative techniques with different prosecutive options.”

“IRS has been a part of the Organized Crime Drug Enforcement Task Force (OCDETF) for over 30 years. ‘Stronger Through Partnership’ is the OCDETF motto, and the success of this highly impactful investigation truly exemplifies that motto,” noted Ryan L. Korner, Special Agent in Charge of the Los Angeles Field Office of IRS-Criminal Investigation (IRS-CI).  “The primary motivation of drug traffickers is greed. They don’t care how their actions negatively impact innocent people, the community, or our society.  The role of IRS-CI is to fully dismantle these criminal organizations by following the money that fuels the drug trade, and ultimately ensure that the peddlers of these illicit drugs do not reap the benefits of their criminal activity.”

“The Sheriff's Department has been a proud partner in the collaborative law enforcement response to organized criminal activity related to unlicensed marijuana distribution in the East County,” said Kelly A. Martinez, Undersheriff of the San Diego County Sheriff’s Department. “Sheriff deputies, investigators, and analysts committed countless hours of investigative support, surveillance, and analysis to this effort.  Today's outcome is a culmination of the dedication of federal, state, and local law enforcement partnerships in the region which are the hallmark of public safety in San Diego.  East San Diego County is safer today because of this hard work.”

“This operation demonstrates that strong partnerships, including participating on federal task forces, keeps our community safe,” said San Diego Police Department Chief David Nisleit. “The San Diego Police Department is committed to working with neighboring law enforcement agencies to combat organized crime in our region. We are proud of the work that has been done to close these illegal distribution centers and stop the violent crime associated with them.”

“Illegal marijuana dispensaries have been responsible for numerous complaints by our community members,” added Chula Vista Police Department Chief Roxana Kennedy. “We’ve seen many of them open up near our schools over time.  They pose a significant health and safety hazard to the public, especially our youth, and they move around trying to avoid enforcement.  Collaborating with our law enforcement partners in the region and pooling our resources to stop these criminal organizations from putting our communities at risk is absolutely critical.”

To date, law enforcement has executed dozens of search warrants and charged more than 30 individuals with violating state and federal law. As a result of this joint effort, law enforcement has seized nearly 30,000 pounds of marijuana and marijuana products; 68 firearms, including ghost guns; and millions of dollars in currency, jewelry, and other valuables. Nearly 30 unlicensed, illegal marijuana dispensaries and wholesale distributors have been shut down as a result.

Of those who have been charged, two groups of individuals recently pleaded guilty in federal court besides Sheikhan and Williams.

The first group, headed by Lance Kachi, admitted to operating multiple unlicensed, illegal marijuana dispensaries in Spring Valley and El Cajon, including locations at 9545 Campo Road, 9600 Campo Road, 9070 Jamacha Road, 985 Greenfield Drive, and 9143 Birch Street. Since at least 2020, Kachi, Michael Yono, Avrin Yakou, Fabian Yakou, and others, oversaw multiple unlicensed dispensaries that would each generate up to $25,000 daily, and were open 24 hours a day, seven days a week.

Kachi and his coconspirators grossed millions of dollars in revenue from their illegal, unlicensed operation. Several times a week, Kachi and others would meet at various hotels where they would spend hours counting hundreds of thousands of dollars in dispensary proceeds using automated money counters. Before leaving the room with bags of money, the defendants would pack up their money counters as well as the various notes they took to account for their profits and expenses, such as the cost of armed security.

In July 2021, law enforcement executed multiple search warrants targeting the Kachi operation. In May 2022, Kachi, Yono, and the Yakou brothers pleaded guilty to various drug, firearms, and money laundering charges, as well as the forfeiture of millions of dollars in cash, jewelry, and other valuables.

Also in May 2022, a second group, comprised of the Shamoun brothers – Sean, Alvin, Vincent, and Andrew – pleaded guilty in federal court to charges stemming from their wholesale distribution of marijuana products to unlicensed, illegal marijuana dispensaries from Los Angeles to San Diego. Operating under the name of Babylon’s Garden, the Shamoun brothers manufactured a variety of marijuana products at a warehouse in San Diego, which they would deliver directly to dispensaries or ship in the United States mail. The Shamoun brothers admitted that their operation was responsible for the manufacturing and distribution of more than 3,000 kilograms of marijuana.

In their plea agreements, all the various defendants referenced above admitted that they had an obligation to report their income to both the Internal Revenue Service (“IRS”) and California state tax authorities, as well as pay taxes on any income derived from these illegal businesses, which they failed to do. Additionally, all individuals agreed to forfeit seized cash, which currently exceeds $5 million.

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 22cr1445-CAB                                 

Name

Age

Hometown

Shahram “Sean” Sheikhan

52

Las Vegas, Nevada

SUMMARY OF CHARGES

Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846

Maximum Penalties: Forty years in prison with a mandatory minimum sentence of five years and a $5 million fine.

DEFENDANT                                                           Case Number 22cr1444-CAB                                 

Name

Age

Hometown

Sabriana Williams

26

San Diego, California

SUMMARY OF CHARGES

Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846

Maximum Penalties: Twenty years in prison and a $1 million fine.

DEFENDANT                                                           Case Number 22cr1261-CAB                                 

Name

Age

Hometown

Travis George

44

San Diego, California

SUMMARY OF CHARGES

Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846

Maximum Penalties: Forty years in prison with a mandatory minimum sentence of 5 years and a $5 million fine.

DEFENDANT                                                           Case Number 22cr1002-CAB

Name

Age

Hometown

Lance Kachi

33

San Diego, California

SUMMARY OF CHARGES

Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846

Conspiracy to Launder Monetary Instruments, in violation of Title 18, U.S.C., Secs. 1956(a)(1)(B)(i) and 1956(h)

Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, U.S.C., Sec. 924(c)

Maximum Penalties: For the drug charges: 20 years in prison, $1 million fine. For money laundering charges, 20 years in prison, and a fine of $500,000 or twice the value of the monetary instrument or funds involved.

DEFENDANT                                                           Case Number 22cr1006-CAB

Name

Age

Hometown

Michael Yono

32

San Diego, California

SUMMARY OF CHARGES

Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846

Conspiracy to Launder Monetary Instruments, in violation of Title 18, U.S.C., Secs. 1956(a)(1)(B)(i) and 1956(h)

Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, U.S.C., Sec. 924(c)

Maximum Penalties: For the drug charges, 20 years in prison and a $1 million fine. For money laundering charges, 20 years in prison and a fine of $500,000 or twice the value of the monetary instrument or funds involved. For the firearms charges, life in prison with a mandatory minimum sentence of 5 years, and a $250,000 fine.

DEFENDANT                                                           Case Number 22cr1000-CAB

Name

Age

Hometown

Avrin Yakou

30

San Diego, California

SUMMARY OF CHARGES

Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846

Conspiracy to Launder Monetary Instruments, in violation of Title 18, U.S.C., Secs. 1956(a)(1)(B)(i) and 1956(h)

Possession of a Firearm in Furtherance of a Drug Trafficking Crime, in violation of Title 18, U.S.C., Sec. 924(c)

Maximum Penalties: For the drug charges, 20 years in prison and a $1,000,000 fine. For money laundering charges, 20 years in prison and a fine of $500,000 or twice the value of the monetary instrument or funds involved. For the firearms charges, life in prison with a mandatory minimum sentence of 5 years, and a $250,000 fine.

DEFENDANT                                                           Case Number 22cr1001-CAB

Name

Age

Hometown

Fabian Yakou

26

San Diego, California

SUMMARY OF CHARGES

Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846

Conspiracy to Launder Monetary Instruments, in violation of Title 18, U.S.C., Secs. 1956(a)(1)(B)(i) and 1956(h)

Maximum Penalties: For the drug charges, 20 years in prison and a $1,000,000 fine. For money laundering charges, 20 years in prison and a fine of $500,000 or twice the value of the monetary instrument or funds involved.

DEFENDANTS                                                        Case Number 21cr2994-CAB

Name

Age

Hometown

Sean Shamoun (1)

32

San Diego, California

Alvin Shamoun (2)

41

San Diego, California

Vincent Shamoun (3)

39

San Diego, California

Andrew Shamoun (4)*

35

San Diego, California

SUMMARY OF CHARGES

Conspiracy to Distribute Marijuana, in violation of Title 21, U.S.C., Secs. 841(c) and 846

Conspiracy to Launder Monetary Instruments, in violation of Title 18, U.S.C., Secs. 1956(a)(1)(B)(i) and 1956(h)

Maximum Penalties: For the drug charges, 40 years in prison with a mandatory minimum sentence of five years and a $5 million fine (*20 years in prison and a $1 million fine). For money laundering charges, 20 years in prison and a fine of $500,000 or twice the value of the monetary instrument or funds involved.

AGENCIES

Federal Bureau of Investigation

Internal Revenue Service - Criminal Investigation

San Diego County Sheriff’s Department

San Diego Police Department

Chula Vista Police Department

 

Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714, Michelle Wasserman (619) 546-8431, Valerie Chu (619) 546-6750, and David Chu (619) 546-8266

NEWS RELEASE SUMMARY – June 29, 2022

SAN DIEGO – Former U.S. Navy Captains David Newland, James Dolan and David Lausman and former Commander Mario Herrera – all of whom once served in the Navy’s Seventh Fleet - were convicted on all counts by a federal jury today of accepting bribes from foreign defense contractor Leonard Francis. The jury did not reach a verdict on the charges against Rear Admiral Bruce Loveless.

Nine members of the U.S. Navy’s Seventh Fleet – including the four defendants convicted today - were indicted by a federal grand jury in March 2017.  Four other defendants pleaded guilty before trial.

During the trial, three U.S. Navy officials – Commander Stephen Shedd, former Lieutenant Commander Edmond A. Aruffo, and U.S. Navy Captain Jesus Vasquez Cantu – and former Lieutenant Commander Alexander Bryan Gillett of the Royal Australian Navy, testified about the alleged bribery scheme.

This long-running fraud and bribery investigation has resulted in federal criminal charges against 34 U.S. Navy officials, defense contractors and the GDMA corporation. Twenty-nine previously pleaded guilty. With today’s four convictions, 33 defendants have now been convicted of various fraud and corruption offenses.

U.S. District Judge Janis L. Sammartino set a status hearing for July 21, 2022, at 2 p.m. A sentencing hearing is scheduled for October 11, 2022, at 9 a.m.

DEFENDANTS                  Case Number: 17CR0623-JLS

Captain David Newland                                 Age 60                        San Antonio, Texas

Chief of Staff to the Commander of the Seventh Fleet

Captain James Dolan                                      Age 58                        Gettysburg, Pennsylvania

Assistant Chief of Staff for Logistics for the Seventh Fleet

Captain David Lausman                                 Age 62                        The Villages, Florida

Commanding Officer of U.S.S. Blue Ridge; Commanding Officer of U.S.S. George Washington

Commander Mario Herrera                            Age 48                        Helotes, Texas

Fleet Operations and Schedules Officer for the Seventh Fleet

SUMMARY OF CHARGES

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

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

*All defendants

Bribery, in violation of 18 U.S.C. § 201

Maximum Penalty: Fifteen years in prison, a $250,000 fine or twice the gross pecuniary gain or gross pecuniary loss from the offense, or three times the monetary equivalent of the thing of value, whichever is greater

*All defendants

Obstruction of Justice, in violation of 18 U.S.C. § 1519

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

*Lausman

Conspiracy to Commit Honest Services Wire Fraud, in violation of 18 U.S.C. §§ 1349, 1346, 1343

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

*All defendants

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Defense Contract Audit Agency

Assistant U. S. Attorney Orlando B. Gutierrez (619) 546-6958    

NEWS RELEASE SUMMARY – June 27, 2022

SAN DIEGO – Benito Jamar Hugie, a corrections officer at Richard J. Donovan Correctional Facility, was indicted by a federal grand jury for accepting thousands of dollars in cash bribes from an inmate to smuggle dental molds, jewelry and other contraband into the prison, including an expensive bejeweled “grill” for the inmate’s mouth.

The indictment said Hugie smuggled the grill into the facility in early October, 2020, and delivered it to inmate Shawn Brown, who had custom ordered it from a jeweler in Houston, Texas, using a smuggled cell phone. A grill, also known as “fronts” or “golds,” is a type of dental jewelry worn over the teeth. Grills are generally made of metal, precious gems, and are generally removable.

Others charged include Brown and his brothers - Daejohne Hatcher and Demetrius Warsinger – who are accused of facilitating more than $5,000 in bribes to Hugie.

According to a second, unrelated indictment, during the investigation of Brown’s alleged bribery scheme, agents learned that while in custody at the prison, Brown used his contraband cellular telephone to coordinate the theft of unemployment benefits intended for Californians who were unable to pay for food and housing as a result of the COVID-19 pandemic. The indictment said Brown and his co-conspirators caused an estimated $1.4 million in fraudulent claims to be filed with the state Employment Development Department, resulting in actual cash payouts of more than $695,000 to Brown and his co-conspirators.

Also charged in that case are Devante Jefferson, Raven Solomon, Homer Pitts, Kimari Goodman, Keako Jones, and Daejohne Hatcher, who allegedly worked together to use stolen victim identities to file fraudulent EDD claims to receive cash benefits meant for those who were in need, the indictment said.

“Corrections officers are supposed to supervise inmates, not collaborate with them on crimes,” said U.S. Attorney Randy Grossman. “We will hold officers accountable when they sacrifice their own integrity and that of the prison system for a payday.” Grossman thanked the prosecution team and FBI agents for their excellent work on this case.

“The defendant is accused of using his position as a corrections officer to work for the inmates inside the facility rather than the public,” said FBI Special Agent in Charge Stacey Moy. “The FBI will not tolerate public corruption or theft of government funds on any level and we will continue to work with our state and federal partners to hold accountable those who use fraudulent schemes for personal gain. I specifically want to thank the California Department of Corrections - Office of Internal Affairs, the United States Attorney’s Office, FBI Sacramento – Fresno Resident Agency, and FBI Houston for their continued partnership in this case.”

DEFENDANTS                     Case Number 22CR1238                             

Shawn Brown                         Age: 26                                   CDCR Inmate

Daejohne Hatcher                  Age: 25                                   Fresno, CA

Benito Jamar Hugie                Age: 47                                   San Diego, CA

Demetrius Vance Warsinger   Age: 26                                   Fresno, CA

Case Number 22CR1239                             

Shawn Brown                         Age: 26                                   CDCR Inmate

Kimari Goodman                    Age: 33                                   Fresno, CA

Daejohne Hatcher                   Age: 25                                   Fresno, CA

Devante Jefferson                   Age: 29                                   CDCR Inmate

Keako Jones                            Age: 47                                   Fresno, CA

Homer Pitts                             Age: 48                                   Fresno, CA

Raven Solomon                      Age: 28                                   Fresno, CA

SUMMARY OF CHARGES

Indictment 1: Corruption Activities Stemming from the Grill

18 USC § 371                Conspiracy to Violate the Travel Act- Bribery (Count 1)

                                    Defendants: Hugie, Brown, Warsinger, and Hatcher

18 USC § 1952(a)(3)     Violation of the Travel Act- Bribery (Count 2)

                                    Defendants: Hugie

18 USC § 1952(a)(3)     Violation of the Travel Act- Bribery (Count 3-5)

                                    Defendants: Brown, Warsinger, and Hatcher

28 USC § 2461(c)          Criminal Forfeiture

Indictment 2: Fraud Activities Involving EDD

18 USC § 1349   –   Conspiracy; Mail Fraud

                                 Defendants: Brown, Jefferson, Solomon, Pitts, Goodman, Jones, and Hatcher

18 USC § 1028A – Aggravated Identity Theft

                              Defendants: Brown, Solomon, Pitts, and Goodman

AGENCIES

Federal Bureau of Investigation

California Department of Corrections and Rehabilitation

*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 Amanda L. Griffith (619) 546-8970    

NEWS RELEASE SUMMARY – June 24, 2022

SAN DIEGO – Ramsey Manuel Cervantes faces federal kidnapping charges in connection with the abduction and sexual assault of a 16-year-old Oklahoma girl who had been reported as a missing runaway by her father on June 15.

The victim was rescued from her alleged captor’s North Park home by San Diego police after she was able to use his cell phone to call for help. Cervantes was subsequently arrested. He made his initial appearance in federal court today before U.S. Magistrate Judge Daniel Butcher. A detention hearing is set for June 30 at 1:30 p.m. before U.S. Magistrate Judge Bernard Skomal.

According to the complaint, the victim met 22-year-old Cervantes on a social media application several months ago. The victim believed Cervantes was 17 years old, and they eventually met when Cervantes drove from San Diego to Oklahoma to meet her in person. Cervantes visited her approximately four times over the following six months. The victim eventually broke up with Cervantes after he became abusive. They were separated for two months. About a week ago, they reconnected and started talking again, including using social media apps to exchange messages.

According to the complaint, Cervantes drove to Oklahoma on June 15 to talk to the minor victim in person to discuss their relationship. They planned for him to pick her up at her residence in Oklahoma. When the girl got in Cervantes’ vehicle, he told her she was coming with him back to San Diego. When she tried to leave the vehicle, Cervantes put a knife to her side and told her he would kill her if she tried to leave. 

Cervantes used duct tape to restrain the girl and transported her from Oklahoma to California. While traveling from Oklahoma to California, Cervantes assaulted the victim many times. The victim reported that Cervantes repeatedly forced her to consume vodka while en route to San Diego, keeping her in a constant state of heavy intoxication.

When they arrived in San Diego on June 19, Cervantes locked the victim in his bedroom for four days.  The victim saw her captor place the black knife with a silver blade in a desk drawer.

On June 22, Cervantes left the residence to go to the store.  Cervantes accidentally left his cell phone in the residence, which the victim used to call her father and law enforcement. Officers responded to Cervantes’ residence and rescued the victim and Cervantes was arrested.

The San Diego Police Department Domestic Violence detectives responded to the scene. FBI agents were called in to assist because Cervantes traveled to Oklahoma and kidnapped the victim, transporting her in interstate commerce from Oklahoma to California.  During the commission of the crime, Cervantes also used his cellular phone which is an instrumentality of interstate commerce.

“The allegations against this defendant highlight the digital and physical vulnerability of our nation’s children,” said U.S. Attorney Randy Grossman. “We will do everything we can to prevent children from becoming victims, and to seek justice if they do. It is important that all of us remain vigilant regarding online activity. Not everyone is who they claim to be in cyberspace.” Grossman thanked the prosecution team, the San Diego Police Department, the FBI, the San Diego County District Attorney’s Office and the Norman, Oklahoma Police Department for their efforts to save this victim and to bring her attacker to justice.

“The defendant is faced with allegations that he committed heinous crimes stemming from an online encounter,” said FBI Special Agent in Charge Stacey Moy. “There is no higher priority than protecting children in both physical and virtual worlds. I want to thank the San Diego Police Department, the San Diego County District Attorney’s Office, and the United States Attorney’s Office for the Southern District of California for their commitment, partnership, and swift action in rescuing the victim, taking the defendant into custody, and filing charges.”

“We are grateful that this case had a positive ending with the young victim back with her loved ones,” said Chief of Police David Nisleit. “This is a sad reminder to all of us to be careful who you trust online.”

For more information and resources for kids, teens and parents on internet crimes against children, pleas see https://www.sandiego.gov/sdicac.

DEFENDANTS                                             Case Number 22mj2288                                               

Ramsey Manuel Cervantes                             Age: 22                                   San Diego, CA

SUMMARY OF CHARGES

Kidnapping – Title 18, U.S.C. § 1201(a) and (g)

Maximum penalty: Twenty years to life in prison

AGENCY

FBI

San Diego Police Department

San Diego County District Attorney’s Office

Norman, Oklahoma 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.

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

NEWS RELEASE SUMMARY – June 23, 2022

SAN DIEGO – A former U.S. Army helicopter pilot-turned-civilian-contractor pleaded guilty in federal court today, admitting that he acted illegally as an agent of China and accepted thousands of dollars from representatives of the Chinese government to provide aviation-related information from his defense-contractor employers. He also pleaded guilty to making related false statements during national security background checks.

Shapour Moinian of San Diego 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 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 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, the defendant 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.

“This defendant took the aviation materials of his American employers and sold them to China,” said U.S. Attorney Randy Grossman. “This conduct was an outrageous breach of trust by a former member of the U.S. military. The United States will aggressively investigate and prosecute anyone who works at the direction of foreign governments to steal American technology and intellectual property.”

“Moinian was a paid agent of the Chinese government who sold American aviation-related technology,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department of Justice has no tolerance for those who help foreign governments break the law to undermine American competitiveness and innovation.”

“The People’s Republic of China remains determined to acquire our information and technology. In this case, we witnessed a former U.S. Government employee acting as an agent of the Government of China and Chinese intelligence officers’ extensive use of social media to identify willing targets,” said Assistant Director Alan E. Kohler Jr. of the FBI’s of the Counterintelligence Division. “The FBI is committed not only to leveraging risk and consequences upon the defendant, but also to confronting the behavior and policies of the Chinese government that threaten our national security and freedom.”

“The defendant admitted to being an unregistered agent of a foreign power, lying on his background check paperwork to obtain his security clearance, knowingly providing proprietary information to people controlled by the Chinese government, and willingly receiving payments from them. This is another example of how the Chinese government enhances its defense capabilities through the illicit exploitation of U.S. technology,” said FBI Special Agent in Charge Stacey Moy. “When someone holds a security clearance, they know what information should be reported to security officials. In this case, the defendant betrayed his sacred oath, knew his actions were wrong, and subsequently lied about it. The FBI and our partners on the Counterintelligence Task Force will pursue anyone who abuses their placement and access to obtain proprietary information on behalf of a foreign government. I specifically want to thank the Naval Criminal Investigative Service for their continued partnership on this case.”

“Mr. Moinian sold information to the Chinese government, and lied repeatedly to cover up his crimes,” said Special Agent in Charge Michelle Kramer of the NCIS Office of Special Projects. “Now he is being held to account for his actions. NCIS and our partners remain unwavering in our commitment to protecting the U.S. military and rooting out criminality that threatens the superiority of the U.S. warfighter.”

Sentencing is scheduled for August 29, 2022, at 11 a.m.

This case was investigated by the Federal Bureau of Investigation and the Naval Criminal Investigative Service and is being prosecuted by the U.S. Attorney’s Office for the Southern District of California and the Department of Justice’s National Security Division.

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

A former U.S. Army helicopter pilot-turned-civilian-contractor pleaded guilty in federal court today, admitting that he acted as an unregistered agent of China and accepted thousands of dollars from representatives of the Chinese government to provide aviation-related information from his defense-contractor employers. He also pleaded guilty to making related false statements during national security background checks.

Shapour Moinian, 67, of San Diego, 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 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 U.S. 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.

“Moinian was a paid agent of the Chinese government who sold American aviation-related technology,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Department of Justice has no tolerance for those who help foreign governments break the law to undermine American competitiveness and innovation.”

“This defendant took the aviation materials of his American employers and sold them to China,” said U.S. Attorney Randy Grossman for the Southern District of California. “This conduct was an outrageous breach of trust by a former member of the U.S. military. The United States will aggressively investigate and prosecute anyone who works at the direction of foreign governments to steal American technology and intellectual property.”

“The People’s Republic of China remains determined to acquire our information and technology. In this case, we witnessed a former U.S. Government employee acting as an agent of the government of China and Chinese intelligence officers’ extensive use of social media to identify willing targets,” said Assistant Director Alan E. Kohler Jr. of the FBI’s of the Counterintelligence Division. “The FBI is committed not only to leveraging risk and consequences upon the defendant, but also to confronting the behavior and policies of the Chinese government that threaten our national security and freedom.”

“The defendant admitted to being an unregistered agent of a foreign power, lying on his background check paperwork to obtain his security clearance, knowingly providing proprietary information to people controlled by the Chinese government, and willingly receiving payments from them. This is another example of how the Chinese government enhances its defense capabilities through the illicit exploitation of U.S. technology,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “When someone holds a security clearance, they know what information should be reported to security officials. In this case, the defendant betrayed his sacred oath, knew his actions were wrong, and subsequently lied about it. The FBI and our partners on the Counterintelligence Task Force will pursue anyone who abuses their placement and access to obtain proprietary information on behalf of a foreign government. I specifically want to thank the Naval Criminal Investigative Service (NCIS) for their continued partnership on this case.”

“Mr. Moinian sold information to the Chinese government, and lied repeatedly to cover up his crimes,” said Special Agent in Charge Michelle Kramer of the NCIS Office of Special Projects. “Now he is being held to account for his actions. NCIS and our partners remain unwavering in our commitment to protecting the U.S. military and rooting out criminality that threatens the superiority of the U.S. warfighter.”

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 by 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, the defendant 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 for payment 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.

At sentencing, Moinian faces a maximum penalty of 10 years in prison and fine up to $250,000 for acting as an agent of a foreign government, and up to five years and a $250,000 fine for the false statements count. Sentencing is scheduled for Aug. 29.

This case was investigated by the FBI and the NCIS and is being prosecuted by the U.S. Attorney’s Office for the Southern District of California and the Department of Justice’s National Security Division.

Special Attorneys Michael Wheat (619) 546-8437, Joseph Orabona (619) 546-7951, Janaki Chopra (619) 546-8817, Colin McDonald (619) 546-9144 and Andrew Chiang (619) 546-8756

NEWS RELEASE SUMMARY – June 17, 2022

HONOLULU – Former Honolulu Prosecuting Attorney Keith Mitsuyoshi Kaneshiro and Honolulu businessman Dennis Mitsunaga are charged in an indictment unsealed today with participating in a bribery scheme in which Mitsunaga and his network of employees and affiliates paid Kaneshiro more than $45,000 in campaign contributions to prosecute one of his former employees and violate that employee’s civil rights.

Kaneshiro and Mitsunaga, owner and CEO of Mitsunaga & Associates, Inc., an engineering and architectural firm, were arrested at their homes this morning and will make their first appearances in federal court today before U.S. Magistrate Judge Wes Reber Porter.  Also indicted and arrested today were three of Mitsunaga’s employees - Terri Ann Otani, Aaron Shunichi Fujii and Chad Michael McDonald. All are charged with Conspiracy to Commit Federal Program Bribery and Honest Services Wire Fraud, and Conspiracy Against Rights.

According to the indictment, Mitsunaga wanted a fired employee, identified in court records as L.J.M., to be prosecuted after that employee filed a federal discrimination suit against Mitsunaga’s company. In order to influence the prosecutor’s office to open an investigation and file charges, Mitsunaga steered tens of thousands of dollars to Kaneshiro’s reelection campaigns between 2012 and 2016. In doing so, Mitsunaga circumvented campaign contribution limits by asking for contributions from family members, business partners, employees and subcontractors. The accusations against L.J.M. were baseless and motivated by a desire to intimidate L.J.M., the indictment said.

According to the indictment, in the summer of 2014, after a senior deputy prosecutor in Kaneshiro’s office recommended declining charges against L.J.M., Kaneshiro reassigned the case to a recently hired deputy prosecuting attorney, identified in court records as J.D. Around December 1, 2014, acting on behalf of Kaneshiro, J.D. filed a felony information against L.J.M., charging L.J.M. with four counts of second-degree theft under State of Hawaii law.

The prosecution of L.J.M. continued for several years until her case was dismissed with prejudice in a written order by Hawaii Circuit Judge Karen T. Nakasone on September 15, 2017. The order of dismissal pointed out the “one-sided nature of the investigation” and the fact that the Department of the Prosecuting Attorney “was little more than acting as the recipient of, and conduit for” submissions provided by Mitsunaga & Associates.

The indictment alleges that in exchange for the contributions given to him by defendants Mitsunaga, Otani, Fujii, McDonald and others, Kaneshiro agreed to take official action and exercise his authority as the Prosecuting Attorney for the City and County of Honolulu to open an investigation into and prosecute L.J.M.

“This indictment alleges a Honolulu businessman and others paid more than $45,000 in campaign contributions to Honolulu’s former Prosecuting Attorney to prosecute a former employee,” said U.S. Attorney Randy Grossman in the Southern District of California. “Public officials must conduct their affairs honestly and with integrity. The Department of Justice will work to hold accountable anyone who betrays that duty through the influence of bribes.”  Grossman thanked the FBI in Honolulu and the prosecution team for their work on this case.

“The citizens of Hawaii deserve a government free of corruption,” said Special Agent in Charge Steven B. Merrill of the FBI’s Honolulu Division. “Corruption erodes the public trust and the FBI is committed to ensuring that people cannot buy prosecutions in the State of Hawaii. Thanks to U.S. Attorney Grossman and the prosecution team for their teamwork and commitment to justice.”

DEFENDANTS                                             Case No. CR 22-00048-JMS  

Keith Mitsuyoshi Kaneshiro                           Age: 72                                               Honolulu, HI

Dennis Mitsunaga                                           Age: 78                                               Honolulu, HI

Terri Ann Otani                                              Age: 66                                               Honolulu, HI

Aaron Shunichi Fujii                                      Age: 64                                               Honolulu, HI

Chad Michael McDonald                               Age: 50                                               Kaneohe, HI

SUMMARY OF CHARGES

Conspiracy to Commit Honest Services Fraud and Federal Program Bribery – Title 18, U.S.C., Section 371

Maximum penalty: Five years in prison

Conspiracy Against Rights – Title 18, U.S.C., Section 241

Maximum penalty: Ten years in prison

AGENCY

FBI

*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. Attorneys Adam Gordon (619) 546-6720 and Galen Cheney (619) 546-7029    

NEWS RELEASE SUMMARY—June 17, 2022

SAN DIEGO— Cole Thomas Salazar pleaded guilty in federal court today, admitting that he supplied a fatal dose of fentanyl that resulted in the death of a 24-year-old woman who was found inside her Vista apartment on November 3, 2020.

According to his plea agreement, Salazar used an online classified ads service to offer controlled substances for sale. After communicating online with the victim - identified in court documents by the initials S.E.F. - Salazar sold fentanyl to S.E.F. on November 2, 2020, and she subsequently died from ingesting the fentanyl.

On January 10, 2021, law enforcement officials arrested Salazar, who possessed packages of heroin and fentanyl when he was taken into custody.  A search of his nearby hotel room located 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 on the HBO show “The Crime of the Century.” Addison pleaded guilty today to possession with intent to distribute fentanyl and methamphetamine.

“We speak often about how counterfeit pills that contain fentanyl endanger our community members,” said U.S. Attorney Randy Grossman. “We can’t lose sight of the fact that powdered fentanyl – which caused the death in this case - is extremely dangerous. To those drug dealers who would sell fentanyl in all its forms: Know that federal law enforcement will hold you accountable for any deaths that your sales cause.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case and unfortunately, many others like it.

“The investigators on the DEA Overdose Response Team work tirelessly to identify and arrest people who cause fentanyl overdose deaths, such as Cole Salazar,” said DEA Special Agent in Charge Shelly S. Howe.  “Our mission is to hold dealers accountable and to save lives.  In this case, that mission was accomplished by arresting Salazar and seizing additional fentanyl that could have killed others.”

“These guilty pleas are the result of joint efforts between Homeland Security Investigations (HSI), DEA, the San Diego Sheriff’s Department, the San Diego County District Attorney’s Office and the U.S. Attorney’s office, working tirelessly to identify criminals who profit from selling lethal drugs in the San Diego community,” said HSI San Diego Special Agent in Charge Chad Plantz.  “HSI will continue to assist the DEA and our state and local partners to bring drug dealers to justice, while also aggressively pursuing drug cartels who smuggle dangerous drugs into the U.S.” 

Salazar and Addison are scheduled to be sentenced on September 16, 2022, before U.S. District Judge Cathy Ann Bencivengo.

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

Assistant U. S. Attorney Jonathan I. Shapiro (619) 546-8225    

NEWS RELEASE SUMMARY – June 16, 2022

SAN DIEGO – The U.S. Department of Justice, together with law enforcement partners in Germany, the Netherlands and the United Kingdom, have dismantled the infrastructure of a Russian botnet known as RSOCKS which hacked millions of computers and other electronic devices around the world.

A botnet is a group of hacked internet-connected devices that are controlled as a group without the owner’s knowledge and typically used for malicious purposes. Every device that is connected to the internet is assigned an Internet Protocol (IP) address.

According to a search warrant affidavit, unsealed today in the Southern District of California, and the operators’ own claims, the RSOCKS botnet, operated by Russian cybercriminals, comprised millions of hacked devices worldwide. The RSOCKS botnet initially targeted Internet of Things (IoT) devices. IoT devices include a broad range of devices—including industrial control systems, time clocks, routers, audio/video streaming devices, and smart garage door openers, which are connected to, and can communicate over, the internet, and therefore, are assigned IP addresses. The RSOCKS botnet expanded into compromising additional types of devices, including Android devices and conventional computers.

“The RSOCKS botnet compromised millions of devices throughout the world,” said U.S. Attorney Randy Grossman. “Cyber criminals will not escape justice regardless of where they operate. Working with public and private partners around the globe, we will relentlessly pursue them while using all the tools at our disposal to disrupt their threats and prosecute those responsible.”  Grossman thanked the prosecution team, the FBI and the Department of Justice Criminal Division’s Computer Crimes and Intellectual Property Section for their excellent work on this case.

“This operation disrupted a highly sophisticated Russia-based cybercrime organization that conducted cyber intrusions in the United States and abroad,” said FBI Special Agent in Charge Stacey Moy. “Our fight against cybercriminal platforms is a critical component in ensuring cybersecurity and safety in the United States. The actions we are announcing today are a testament to the FBI’s ongoing commitment to pursuing foreign threat actors in collaboration with our international and private sector partners.”

A legitimate proxy service provides IP addresses to its clients for a fee. Typically, the proxy service provides access to IP addresses that it leases from internet service providers (ISPs). Rather than offer proxies that RSOCKS had leased, the RSOCKS botnet offered its clients access to IP addresses assigned to devices that had been hacked. The owners of these devices did not give the RSOCKS operator(s) authority to access their devices in order to use their IP addresses and route internet traffic. A cybercriminal who wanted to utilize the RSOCKS platform could use a web browser to navigate to a web-based “storefront” (i.e., a public web site that allows users to purchase access to the botnet), which allowed the customer to pay to rent access to a pool of proxies for a specified daily, weekly, or monthly time period. The cost for access to a pool of RSOCKS proxies ranged from $30 per day for access to 2,000 proxies to $200 per day for access to 90,000 proxies.

Once purchased, the customer could download a list of IP addresses and ports associated with one or more of the botnet’s backend servers. The customer could then route malicious internet traffic through the compromised victim devices to mask or hide the true source of the traffic. It is believed that the users of this type of proxy service were conducting large scale attacks against authentication services, also known as credential stuffing, and anonymizing themselves when accessing compromised social media accounts, or sending malicious email, such as phishing messages.

As alleged in the unsealed warrant, FBI investigators used undercover purchases to obtain access to the RSOCKS botnet in order to identify its backend infrastructure and its victims. The initial undercover purchase in early 2017 identified approximately 325,000 compromised victim devices throughout the world with numerous devices located within San Diego County. Through analysis of the victim devices, investigators determined that the RSOCKS botnet compromised the victim device by conducting brute force attacks. The RSOCKS backend servers maintained a persistent connection to the compromised device. Several large public and private entities have been victims of the RSOCKS botnet, including a university, a hotel, a television studio, and an electronics manufacturer, as well as home businesses and individuals. At three of the victim locations, with consent, investigators replaced the compromised devices with government-controlled computers (i.e., honeypots), and all three were subsequently compromised by RSOCKS. The FBI identified at least six victims in San Diego.

This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Jonathan I. Shapiro of the Southern District of California and Ryan K.J. Dickey, Senior Counsel for the Department of Justice Criminal Division’s Computer Crimes and Intellectual Property Section.  The Department of Justice extends its appreciation to the authorities of Germany, the Netherlands, and the United Kingdom, the Justice Department’s Office of International Affairs and private sector cybersecurity company Black Echo, LLC for their assistance provided throughout the investigation.

In September 2020, FBI Director Christopher Wray announced the FBI’s new strategy for countering cyber threats. The strategy focuses on imposing risk and consequences on cyber adversaries through the FBI’s unique authorities, world-class capabilities, and enduring partnerships. Victims are encouraged to report the incident online with the Internet Crime Complaint Center (IC3) www.ic3.gov.

Assistant U. S. Attorney Owen Roth (619) 546-7710 and Assistant U.S. Attorney Shauna R. Prewitt (619) 546-7937

NEWS RELEASE SUMMARY – June 14, 2022

SAN DIEGO – A two-year investigation has led to the indictment of 26 defendants for international drug smuggling, drug trafficking, and related conspiracy offenses. One of the defendants, Raul Barajas-Padilla, appeared in federal court yesterday for an initial appearance on the indictment.

So far, 17 defendants have been arrested. Efforts remain ongoing to apprehend the remaining defendants.

According to publicly filed documents, the Drug Enforcement Administration led the investigation into a drug-trafficking conspiracy extending from Sinaloa, Mexico into the United States.

Agents identified Mexico-based traffickers who coordinated shipments of counterfeit pharmaceutical pills laced with fentanyl, powder fentanyl, heroin, methamphetamine and cocaine into the United States. These efforts yielded seizures of more than 478,000 counterfeit pharmaceutical pills laced with fentanyl, as well as about 51 kilograms of methamphetamine, 10 kilograms of cocaine, 4 kilograms of powder fentanyl, and 4 kilograms of heroin. Agents also seized about $230,000 in assets.

According to the indictment, DEA agents also identified the distributors in the U.S.; the couriers who were responsible for transporting drugs; the people who managed stash houses; the people who smuggled the illicit proceeds back to Mexico; and other dealers.

“This long-term investigation has resulted in the seizure of nearly half a million fentanyl-laced counterfeit pills plus additional quantities of fentanyl in powder form,” said U.S. Attorney Randy Grossman. “As fentanyl continues to fuel the ongoing opioid epidemic and claim ever more lives, we will use every available resource to find, apprehend, and hold accountable those who seek to profit from it, no matter where they are.” Grossman thanked the prosecution team as well as the DEA, HSI agents, the San Diego County Sheriff’s Department and supporting local, state, and federal partners who conducted this investigation for their excellent work on this case.

“Drug cartels, such as the Sinaloa cartel, are driving addiction and overdose deaths in the United States,” said DEA Special Agent in Charge Shelly S. Howe. “This extensive investigation demonstrates DEA’s resolve to hold drug dealers accountable for their destruction and to prevent massive amounts of fentanyl pills and other addictive drugs from being sold to our citizens.” 

“The criminal investigation that led to this indictment is a great example of successful collaboration between multiple law enforcement agencies determined to prevent illegal narcotics from entering our communities,” said HSI San Diego Special Agent in Charge Chad Plantz. “HSI will continue working with our federal, state, and local law enforcement partners to bring to justice those who smuggle dangerous narcotics across our borders.”

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The U.S. Attorney’s office is actively partnering with San Diego County District Attorney Summer Stephan and the San Diego Prescription Drug Abuse Task Force (PDATF) to provide the community information and resources regarding fentanyl and naloxone. Resources include a recent recorded Town Hall titled Talk to Your Kids About Fentanyl, featuring 10 Ways to Protect our Kids from Fentanyl, https://www.youtube.com/watch?v=el09UaBc47U; a Community & Parent Fentanyl Toolkit, available at https://www.sdpdatf.org/community-resources; and information on how to obtain and learn to use lifesaving Naloxone, https://www.sdpdatf.org/naloxone.

DEFENDANTS                                     Case Number 22-CR-863                                              

Jose Refugio Vasquez, Jr.                   Age: 31                                   San Ysidro

Jaime Gutierrez                                  Age: 48                                   El Cajon and Tijuana, MX

Jose Baudelio Garcia                          Age: 45                                   San Diego

Raul Osbaldo Perez                            Age: 28                                   San Ysidro and Tijuana, MX

Marvin Toms                                      Age: 61                                   San Bernardino, CA

Andrew Acuna                                    Age: 31                                   Chula Vista      

Mario Hernandez                                Age:45                                    Chula Vista and Fresno, CA

Michael Perez-Lopez                          Age: 26                                   San Ysidro and Tijuana, MX

Jorge Paredes                                      Age: 26                                   San Diego and Tijuana                                  

Edgar Lopez, Jr.                                  Age: 25                                   Tijuana, MX

Angel Gutierrez                                  Age: 21                                   Lynwood, CA

Raul Barajas-Padilla                           Age: 21                                   San Diego

Oscar Daniel Munoz Gonzalez          Age: 30                                   San Ysidro

Gabriel Jimenez-Aispuro                   Age: 31                                   San Diego

Edgar Cornejo                                     Age: 26                                   San Diego

Andres Martinez                                 Age: 25                                   San Ysidro

Oswaldo Marceleno-Cortez               Age: 40                                   San Diego

SUMMARY OF CHARGES

Controlled Substances Trafficking Conspiracy – Title 21, U.S.C., Section 846

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

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

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

AGENCY

Drug Enforcement Administration

Homeland Security Investigations

San Diego Sheriff’s 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. 

 

Assistant U. S. Attorneys Sabrina L. Fève (619) 546-6786 and Melanie Pierson 546-7976

NEWS RELEASE SUMMARY – June 10, 2022

SAN DIEGO – Three employees of the affiliate marketing platform Amobee pleaded guilty in federal court today to hijacking Internet Protocol (IP) addresses to send unsolicited commercial email messages, commonly known as “spam.”

The three employees, Jacob Bychak, Mark Manoogian, and Abdul Mohammed Qayyum, joined Daniel Dye and Vincent Tarney in pleading guilty to violating the federal CAN-SPAM statute for their involvement in misusing the stolen IP addresses to send spam.

The defendants’ employer, formerly known as both Adconion Direct Inc. and Frontline Direct (hereafter, “Adconion”), previously agreed to forfeit $4,939,526 as the fraudulent proceeds of a wire fraud conspiracy in which its employees hijacked more than 500,000 IP addresses to send over 10 billion commercial emails to people in the United States and elsewhere.

IP addresses are the beginning and ending points for sending data via the internet. A discrete bundle of IP addresses in numeric order is known as a range or block. In this case, the defendants pleaded guilty to using fraudulent Letters of Authorization (“LOAs”) to take control of large blocks of IP addresses registered to eleven different entities without the registrants’ knowledge or consent. As part of the fraudulent scheme, the defendants used email accounts set up to impersonate the IP blocks’ true registrants. In particular, the defendants used and created email addresses with the true registrants’ domain name (e.g., ect.net) to impersonate real and fictitious employees. They then emailed the fraudulent LOAs, which were written on fake letterheads and included forged signatures, from these imposter email accounts to various Internet hosting companies to falsely represent to the hosting companies that the true registrants authorized them to use the IP addresses.

All the IP blocks hijacked by the defendants were IPv4 addresses. Demand for a finite number of IPv4 addresses available has driven up their value over time. Between December 2010 and September 2014, when the defendants’ conduct occurred, a block of 65,534 IP addresses, referred to as a Class B block, was worth approximately $650,000. Today, it is worth as much as $3.3 million. Internet Service Providers like Yahoo and Google routinely employ filters to block spam from reaching a recipient’s inbox. Once an IP address is associated with spam, the filters typically block messages sent from that IP address. Spammers need a constant supply of fresh unblocked IP addresses to deliver the unwanted commercial email.

The defendants’ jobs with Adconion were to acquire fresh IP addresses and employ other measures to circumvent the spam filters. To conceal Adconion’s ties to the stolen IP addresses and the spam sent from these IP addresses, the defendants used a host of DBAs, virtual addresses, and fake names provided by the company. While defendants touted ties to well-known name brands, the email marketing campaigns associated with the hijacked IP addresses included advertisements such as “BigBeautifulWomen,” “iPhone4S Promos,” and “LatinLove[Cost-per-Click].”

Today’s guilty pleas arise from an October 2018 indictment for which trial began on May 23, 2022. Following opening statements, the trial was interrupted by the recent COVID surge and had yet to resume. In exchange for misdemeanor pleas, the defendants have each agreed to admit their involvement in the scheme, to undertake 100 hours of community service, and to pay a maximum $100,000 fine.

This case was investigated by the Federal Bureau of Investigation with assistance provided by the Internal Revenue Service and the Department of Justice’s Computer Crime and Intellectual Property Section.

“The defendants generated millions of dollars for their company by high-jacking hundreds of thousands of IP addresses, enabling them to illegally inundate consumers with over 10 billion email ads,” said U.S. Attorney Randy Grossman. ““This case was the first in the nation to charge violations of the CAN-SPAM Act’s provision against using hijacked IP addresses to send spam. We are committed to using all the tools at our disposal to protect the internet and everyone who depends on it.” Grossman thanked the prosecution team as well as the investigating agencies, the American Registry of Internet Numbers, Yahoo, The Spamhaus Project, and The National Cyber-Forensics and Training Alliance.

“These defendants spent years illegally sending billions of spam emails nationwide which made millions of dollars,” said FBI Special Agent in Charge Stacey Moy. “The FBI remains committed to pursuing these criminal conspiracies, no matter how long it takes, and holding them accountable in a court of law. I want to thank the United States Attorney’s Office for their ongoing support and partnership in bringing this case to an end.”

The defendants are scheduled to be sentenced on October 3, 2022, at 10:30 a.m. before U.S. District Judge Gonzalo P. Curiel.

DEFENDANTS                                             Case Number 18cr4683-GPC                                       

Jacob Bychak                          Age: 36                                   Carlsbad, CA

Mark Manoogian                    Age: 39                                   Carlsbad, CA

Abdul Mohammed Qayyum   Age: 40                                   Oceanside, CA

SUMMARY OF CHARGES

CAN-SPAM – Title 18, U.S.C., Section 1037(a)(5) and (b)(3)

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

AGENCIES

Federal Bureau of Investigation

Internal Revenue Service

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

SAN DIEGO – Sofia Mancera Morales, the ringleader of a pesticide smuggling organization, was sentenced to eight months in custody in federal court yesterday, having previously entered a guilty plea in which she acknowledged obtaining illegal pesticides in Mexico and delivering them to others to smuggle into the United States. When handing down the sentence, U.S. District Court Judge John Houston also ordered Morales to pay $7497 in restitution for the cost of disposal of the illegal pesticides.

According to sentencing documents, Morales recruited individuals on Facebook, offering to pay $40-$150 for each 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, after which they were required to send her photographs of the pesticides in the storage unit as proof of delivery prior to payment. Morales paid recruits to lease self-storage units in their own names and instructed them to 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 1000 bottles of pesticides in a one-month period, while others advised that they had delivered pesticides 2-5 times per week.

The pesticides involved were primarily Bovitraz and Taktic, which contain the active ingredient amitraz in a concentrated form (12.5%) that renders it a cancelled and unregistered pesticide. Amitraz is an acaricide that is registered in the United States. to control varroa mites in honeybee colonies at a much lower concentration (3.33%) than the smuggled product. At a permissible concentration it is also registered for use in dog flea collars. In addition to posing risks to the bee population, misuse of amitraz-containing products in beehives can result in exposures that could cause neurological effects and reproductive effects in humans from consumption of contaminated honey. Animal toxicity studies indicate that amitraz is slightly toxic by the oral and inhalation routes and moderately toxic through the skin. Reproductive effects seen in animal studies include a decline in male fertility and a reduction in live births. Moreover, signs of neurotoxicity from exposure to amitraz were seen in multiple animal species, including central nervous system depression, decrease in pulse rate, and hypothermia, and based on human studies, humans appear to be more sensitive to amitraz than animals. Amitraz is also classified as a Group C possible human carcinogen based on rodent studies suggesting that long-term exposure could result in cancer.

Federal law prohibits the distribution and sale of cancelled or unregistered pesticides. 7 U.S.C. §136j(a)(1)(A). Only pesticides registered with the EPA may be imported or sold in the United States. 7 U.S.C. §136o(c).

“In exchange for ill-begotten profits, this cavalier smuggling operation was more than willing to risk the public’s health and the honeybee industry, which is critical to pollinating our food supply,” said U.S. Attorney Randy Grossman. “This office and our law enforcement partners will not stand idly by in the face of pesticide 3 smuggling. Perpetrators of environmental crimes will be investigated and held accountable.” Grossman commended Assistant U.S. Attorney Melanie Pierson, Special Assistant U.S. Attorney Stephen DaPonte, and the law enforcement agents at Homeland Security Investigations and the EPA’s Criminal Investigation Division who worked on this case.

“This defendant recklessly orchestrated an illegal large-scale pesticide smuggling operation. These pesticides are banned from importation into the United States because they are highly toxic to humans, wildlife, and the environment,” said Chad Plantz, Special Agent in Charge of Homeland Security Investigations (HSI) San Diego. HSI, along with its partners from the Environmental Protection Agency – Criminal Investigation Division, U.S. Customs and Border Protection, the U.S. Attorney’s Office, and the Department of Justice Environmental Crimes Section are committed to preventing these deadly pesticides from entering the United States.”

“The pesticides involved in this case pose serious public health and environmental dangers,” said Special Agent in Charge Scot Adair of EPA’s Criminal Investigation Division in California. “The sentence in this case demonstrates that individuals who intentionally violate smuggling and environmental protection laws will be held responsible for their crimes.”

                                     Case Number 20cr3054-JAH
DEFENDANT                             
Sofia Mancera Morales            Age: 53                      Mexicali, MX

SUMMARY OF CHARGES
Conspiracy to Smuggle Pesticides – Title 18, U.S.C., Section 371
Maximum penalty: 5 years’ imprisonment and $250,000 fine

AGENCY
Homeland Security Investigations
Environmental Protection Agency, Criminal Investigation Division

 

 

For Further Information, Contact: Assistant U.S. Attorneys Kareem A. Salem (619) 546-8904 and John Parmley (619) 546-7957

SAN DIEGO – Joe Sery, former owner and chief executive officer of Tungsten Heavy Powder & Parts, pleaded guilty today before U.S. Magistrate Judge William V. Gallo to conspiring to commit offenses against the United States, including the unlawful exportation of defense articles on the U.S. Munitions List from the United States to the People’s Republic of China, the Republic of India, and elsewhere, without first obtaining a valid license or approval for such export from the U.S. Department of State, in violation of federal export laws pursuant to the International Traffic in Arms Regulations (ITAR).

According to his plea agreement, Sery admitted that, while the CEO of Tungsten Heavy Parts and Powder, he was educated and trained on the requirements of U.S. export control laws, which prohibit the unlicensed export of items and data contained on the U.S. Munitions List. Sery entered into contracts with various defense contractors related to munitions and obtained ITAR-controlled technical data from them.  Thereafter, knowing it was unlawful, he provided this information to a foreign national, his brother, who took the technical data to the People’s Republic of China, the Republic of India, and elsewhere at Sery’s direction.  Sery also permitted his brother full access to THPP’s file system while overseas, knowing that it contained export-controlled technical data. 

“As CEO of a company with multiple defense contracts, Sery was entrusted with controlled information that he knew he had to protect, yet he completely disregarded security regulations and allowed sensitive data to be sent to China, India and elsewhere,” said U.S. Attorney Randy Grossman. “He is now being held accountable.”  Grossman commended the prosecutors and Homeland Security Investigations and Defense Criminal Investigative Service agents who diligently pursued this case.

“This individual willfully violated the law that prevents controlled technical data from falling into the hands of Americas’ adversaries,” said Homeland Security Investigations (HSI) San Diego Special Agent in Charge Chad Plantz. “This guilty plea should serve as a reminder that HSI and our law enforcement partners will diligently investigate and bring to justice anyone attempting to disregard our federal export laws.”

“Mr. Sery’s guilty plea is an acknowledgement of his role in a scheme to illegally export critical defense information and technology,” said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office.  “As exemplified in this case, DCIS and our law enforcement partners will ensure all appropriate actions are taken to investigate and successfully prosecute those who engage in illicit activities that threaten our nation’s defense.”

DEFENDANT                       Case Number 21CR2898-GPC

Joe Sery                                   Age: 77                       San Diego, CA

 

CHARGE

Conspiracy to Commit Offenses Against the United States (to wit: Exportation of Defense Articles Without a License- Title 18 U.S.C., Section 371; Title 22 U.S.C., 2778(b)(2), (c); Title 22 CFR Sections, 120, 121.1 , 123.1, 127.l(a)(4)

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

 

AGENCIES

U.S. Homeland Security Investigations

U.S. Defense Criminal Investigative Services

U.S. Army, Criminal Investigation Division

National Security Division, Department of Justice 

For Further Information, Contact: Assistant U. S. Attorney Aaron P. Arnzen (619) 546-8384

SAN DIEGO – Andrew Hackett, from Toronto Canada, was sentenced to 46 months in prison today for participating in a pump and dump securities fraud scheme involving the stock of a small, publicly-traded cannabis/gaming company. 

In August 2021, the jury found Hackett guilty of securities fraud and conspiracy.  According to evidence presented at trial, Hackett and his co-conspirators manipulated the market for Arias Intel Corp stock. Hackett, who led the scheme, made consistent efforts to artificially inflate the price of Arias Intel’s stock by controlling the majority of the company’s free-trading shares through concealed offshore and other nominee accounts, coordinating the company’s press releases with the issuance of penny stock newsletters, and using high-pressure call rooms targeting innocent investors. Hackett and his co-conspirators also engaged in manipulative trading to create the appearance that Arias Intel stock traded at higher prices and with greater volume than was actually the case.

In handing down the sentence, U.S. District Judge Todd W. Robinson noted that Hackett played a central role in organizing the conspirators’ pump and dump efforts.  The Court also scheduled a hearing on August 12, 2022 to determine the amount of restitution Hackett should pay to victims of his crime.

“The U.S. securities markets should operate on a level playing field,” said U.S. Attorney Randy S. Grossman.  “We will continue to hold those who would illegally manipulate the markets, and try to tip the scales unfairly in their favor, to account.”

“The FBI is committed to preserving the integrity of our financial markets and utilizing all available investigative techniques to root out those who attempt to manipulate it through fraudulent means,” said FBI Special Agent in Charge Stacey Moy. “The FBI is proud to work with our partners at the Securities and Exchange Commission and the Financial Industry Regulatory Authority, Inc. - Criminal Prosecution Assistance Group, to hold Mr. Hackett and his co-conspirators accountable for their criminal actions.”   

Three other defendants were charged alongside Hackett and who pleaded guilty - including Kuldeep Sidhu of Vancouver, British Columbia; Annetta Budhu of New York, New York; and Kevin Gillespie of Tampa, Florida - were previously sentenced.

DEFENDANTS                                            Case Number 18cr3072-TWR                                            

Andrew Hackett                                             Age:  33                                  Toronto, Canada       

Kuldeep Sidhu                                                Age:  51                                  British Columbia, Canada

Annetta Budhu                                               Age:  57                                  New York, NY

Kevin Gillespie                                               Age:  53                                  Tampa, Florida

 

SUMMARY OF CHARGES

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

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

 

AGENCY

FBI (lead agency)

Securities and Exchange Commission

Criminal Prosecution Assistance Group, Financial Industry Regulatory Authority

 

Assistant U.S. Attorney Timothy F. Salel (619) 546-8055

NEWS RELEASE SUMMARY – June 3, 2022

SAN DIEGO - Three brothers from San Diego pleaded guilty in federal court yesterday, admitting that for eight years, they led an international conspiracy to traffic counterfeit iPhones and iPads.

As part of their plea agreements, the Liao brothers – Zhiwei, Zhimin and Zhiting - and their wives - Dao La, Mengmeng Zhang, and Tam Nguyen, who also pleaded guilty yesterday - agreed to forfeit their interests in five residences in San Diego, more than $250,000 in criminal proceeds, and more than 200 Apple iPhones that were counterfeit, fraudulently obtained, or linked to their criminal conspiracy.

The Liaos admitted that, from 2011 through at least August 2019, they managed an organization to traffic in counterfeit Apple products. The Liaos imported counterfeit iPhones and iPads from China that looked genuine and included identification numbers that matched identification numbers on real iPhones and iPads that were under warranty and had been previously sold to customers in the United States and Canada.              

At the direction of the Liao brothers, co-conspirators traveled to hundreds of Apple Stores across the United States and Canada and attempted to exchange more than 10,000 counterfeit iPhones and iPads for genuine iPhones and iPads. The Liaos exported fraudulently obtained iPhones and iPads to individuals in foreign countries for profit.  The estimated total infringement amount or loss suffered by Apple was approximately $6.1 million. 

“As our markets become more global, more complex and more sophisticated, protecting intellectual property rights become even more important,” said U.S. Attorney Randy S. Grossman.  “Our office will aggressively prosecute criminals who try to steal intellectual property and attempt to exchange counterfeit products for genuine products.  We will continue fighting IP crime and upholding the rule of law.”  Grossman thanked the prosecution team and the FBI for their excellent work on this case.

“For years, the Liao brothers and their co-conspirators trafficked thousands of counterfeit Apple products in exchange for genuine Apple products totaling millions of dollars,” said FBI Special Agent in Charge Stacey Moy. “The FBI and our law enforcement partners at the San Diego Police Department, the San Diego County Sheriff’s Department, U.S. Customs and Border Protection, Homeland Security Investigations, and the U.S Attorney’s Office will pursue criminal organizations who target legitimate businesses through fraudulent means for their own financial gain.”

The Liao brothers and their wives are scheduled to appear for sentencing before U.S. District Judge Cynthia A. Bashant on August 15, 2022, at 9:00 a.m.

DEFENDANTS                                                                     Case Number 19CR4407-BAS

Zhiwei Liao, aka “Allen”       San Diego, CA                        Age:    34

Zhimin Liao, aka “Jimmy”     San Diego, CA                        Age:    36

Zhiting Liao, aka “Tim”         San Diego, CA                        Age:    33

Dao Trieu La, aka “Selena”

  aka “Denise”                         San Diego, CA                        Age:    32

Mengmeng Zhang, aka “Aria”           San Diego, CA            Age:    31

Tam Thi Minh Nguyen, aka “Kelly,”

  aka “Actheart”                                  San Diego, CA            Age: 39

CO-CONSPIRATORS WHO PREVIOUSLY PLEADED GUILTY

Charley Hsu                            San Diego, CA                        Age:    41

Danny Tran Chan,

  aka “Stanley”                        San Diego, CA                        Age:    32

Phillip Pak, aka “Teddy”        San Diego, CA                        Age:    33

Deedee Zhu, aka “David,”

  aka “Peter”                            San Diego, CA                        Age:    35

Jiaye Jiang, aka “joejoekong”

  aka “yipkong”                       San Diego, CA                        Age:    34

Hyo Yang, aka “Will”            San Diego, CA                        Age:    33

SUMMARY OF CHARGES

The Liao brothers (Zhiwei, Zhimin, and Zhiting) all pleaded guilty to conspiracy to traffic in counterfeit goods.  The Liaos’ wives pleaded guilty to substantive counts of wire fraud or mail fraud. Dao Trieu La pleaded guilty to wire fraud. Mengmeng Zhang and Tam Nguyen pleaded guilty to mail fraud.

Conspiracy to Traffic in Counterfeit Goods – Title 18, U.S.C., Section  2320

Maximum penalty: Ten years in prison, $2 million fine, mandatory restitution, and forfeiture.

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

Maximum penalty: Twenty years in prison, the greater of $250,000, or twice the value of the gross gain or twice the gross loss to the victims, mandatory restitution, and forfeiture.

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

Maximum penalty: Twenty years in prison, the greater of $250,000, or twice the value of the gross gain or twice the gross loss to the victims, mandatory restitution, and forfeiture.

AGENCIES

Federal Bureau of Investigation

San Diego Police Department

San Diego Sheriffs

U.S. Customs & Border Protection

Homeland Security Investigations

Assistant U. S. Attorneys Kareem A. Salem (619) 546-8904 and Larry Casper (619) 546-6734

NEWS RELEASE SUMMARY – June 3, 2022

SAN DIEGO – Drug dealer Arnold Ray Walters III of San Diego was sentenced in federal court today to 25 years in prison for unlawfully possessing firearms and distributing fentanyl that resulted in the overdose death of a 24-year-old Poway man on January 1, 2017.

According to his plea agreement, Walters admitted that, on or about December 31, 2016, he knowingly provided a pressed-blue pill containing fentanyl to another individual and understood that it would, in turn, be provided to the victim.  Walters also admitted he was aware of the potentially lethal impact of the fentanyl based on his knowledge of other individuals accidentally overdosing on fentanyl.

At today’s sentencing hearing, U.S. District Judge Janis L. Sammartino noted, “This was truly a tragic case.”

Walters, who has a history of drug-sales convictions and firearm offenses, admitted that he sold fentanyl despite knowing the perils associated with the drug. Walters was also found in unlawful possession of several firearms including an AR-15 style semi-automatic rifle.

“This is a sentence that reflects the tragic and senseless loss of a young life,” said U.S. Attorney Randy Grossman. “Dealers take note, you will pay a high price for your greedy, reckless actions which are destroying lives, families and communities. Our prosecutors and law enforcement officials are working hard to prevent more deaths and seek justice for victims.” Grossman thanked the prosecution team as well as officials from the San Diego Sheriff’s Department and Homeland Security Investigations for their excellent work on this case.

“This significant sentence should send a strong message that HSI takes very seriously its mission of ensuring public safety,” said HSI San Diego Special Agent in Charge Chad Plantz. “HSI will continue to work with our federal, state, and local law enforcement partners to relentlessly investigate and bring to justice those who introduce dangerous narcotics into our communities.” 

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

DEFENDANT                       Case Numbers 19-CR-4406-JLS; 18-CR-2185-JLS                                    

Arnold Ray Walters III                       Age: 34                       San Diego      

SUMMARY OF CHARGES

Felon in Possession of Firearm – Title 18, U.S.C., Section 922(g)(1)

Distribution of Fentanyl Resulting in Death – Title 21, U.S.C., Section 841(b)(1)(c)

Maximum penalty: Mandatory minimum 20 years in prison up to life

AGENCY

San Diego Sheriff’s Department

U.S. Homeland Security Investigations

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

NEWS RELEASE SUMMARY – June 1, 2022

SAN DIEGO – Angel Dominguez Ramirez Jr., a former U.S. Marine with dual U.S. and Mexican citizenship, was sentenced in federal court to 195 months in prison for leading an international organization that transported ton-quantities of cocaine from South America to Mexico and into the United States.

Dominguez had previously entered a guilty plea to International Conspiracy to Distribute Cocaine and Money Laundering Conspiracy. In pronouncing sentence yesterday, U.S. District Judge William Q. Hayes noted the “staggering” amount of cocaine that Dominguez smuggled.

According to a court document, the organization Dominguez headed called itself El Seguimiento 39, El Seg 39, or simply “The Company.” According to the same document, Dominguez built his organization through cooperative alliances with the Beltran Leyva Organization (BLO), the Cartel de Jalisco Nueva Generacion (CJNG), the Sinaloa Cartel, the Cartel del Golfo (CDG), and Los Zetas.

Other publicly filed documents note that El Seg 39 also used its contacts with corrupt high-level Mexican officials to thwart investigations into its drug trafficking activities. As noted in court documents, agents from Homeland Security Investigations (HSI) estimate that at its height El Seg 39 used these alliances to smuggle approximately 10 tons of cocaine into the United States each month and move at least $10 million dollars of drug proceeds back into Mexico monthly.

“Today’s sentence sends a message that the leaders of even the most powerful criminal organizations will be held accountable,” said U.S. Attorney Randy Grossman. Grossman thanked the prosecution team, Homeland Security Investigations, the Drug Enforcement Administration, and Customs and Border Protection for their excellent work on this case.

“Today’s sentencing of Dominguez is a strong example of HSI’s ongoing efforts to target and dismantle the most significant drug trafficking organizations in the world, whose multi-billion dollar criminal networks funnel drugs onto our streets and spread violence into our communities,” said Chad Plantz, Special Agent in Charge of HSI San Diego. “We will continue to work together with our law enforcement partners in Mexico to root out the leaders of these insidious cartels, wherever they may be found, and bring them to justice.”

“This case is a perfect example of how DEA and our law enforcement partners work together to dismantle criminal organizations,” said DEA Special Agent in Charge Shelly S. Howe.

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

DEFENDANT                                                           Case Number: 19CR1996-WQH

Angel Dominguez Ramirez                                        Age: 50                       Tamaulipas, Mexico

SUMMARY OF CHARGES

Conspiracy to Distribute Controlled Substances for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963; Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine and 5 years supervised release.

Conspiracy to Launder Monetary Instruments, in violation of Title 21 U.S.C. §§ 1956(a)(2)(B)(i). Term of custody of up to 10 years, $500,000 fine.

AGENCIES

Homeland Security Investigations

Drug Enforcement Administration

Customs and Border Protection

Department of Justice, Organized Crime Drug Enforcement Task Force

Department of Justice, Office of Enforcement Operations

Department of Justice, Office of International Affairs

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

NEWS RELEASE SUMMARY—June 1, 2022

SAN DIEGO — Drug dealer Saul Caro pleaded guilty in federal court today, admitting that he sold the fentanyl that caused the fatal overdose of a thirty-five-year-old San Diego resident, identified in court records as M.S.

According to his plea agreement, on April 11, 2021, Caro and the victim exchanged text messages to coordinate the sale of counterfeit oxycodone pills laced with fentanyl. Caro delivered the pills to M.S.’s residence.

M.S. died in his apartment sometime on the evening of April 11, 2021. Caro admitted that the pills he gave to M.S. caused his death. When a search warrant was executed at Caro’s residence, a loaded, unregistered, semi-automatic privately manufactured firearm with no serial number, or “ghost gun” was located along with other drugs and drug paraphernalia.

Prior to this meeting, Caro had sold the counterfeit oxycodone pills to M.S., and the victim had told Caro that some of the pills had caused him severe unintended effects.

“Drug dealers are playing with fire when they sell illicit drugs because deadly fentanyl is everywhere. Dealers beware: the counterfeit pills or powder you sell will inevitably be laced with fentanyl. If you provide the fatal pill or powder, you will be held responsible for the victim’s death.” Grossman thanked the prosecution team and agents from the Drug Enforcement Administration and Homeland Security Investigations for their excellent work to achieve justice in this case.

“Deaths caused by fentanyl continue to rise in San Diego County as the cartels and drug dealers, such as Saul Caro, drive addiction,” said DEA Special Agent in Charge Shelly S. Howe.  “In response, DEA has increased the number of investigators on our Overdose Response Team, making us laser focused on pursuing dealers who distribute deadly fentanyl.”

“Homeland Security Investigations (HSI) San Diego, along with the DEA and our San Diego law enforcement partners, are prioritizing investigations targeting both the drug cartels who are smuggling fentanyl into the United States and the local dealers who peddle this lethal drug within our community,” said HSI San Diego Special Agent in Charge Chad Plantz.    

Caro is scheduled to be sentenced on September 19, 2022 at 8:30 a.m. before U.S. District Judge Gonzalo P. Curiel

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 DEA to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The DEA created Narcotics Task Force Team 10 as a response to the increase in overdose deaths in San Diego County. Agents from Team 10 contributed to the investigation into M.S.’s death.

DEFENDANTS                                             Case Number 21cr3100-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

SAN DIEGO – Vyvianna M. Quinonez of Sacramento was sentenced in federal court today to 15 months in federal custody for interfering with a Southwest Airlines flight attendant. In addition, U.S. District Court Judge Todd W. Robinson ordered Quinonez to pay $25,981.57 in restitution and a $7,500 fine and imposed three years of supervised release. While on supervised release, Quinonez will be prohibited from flying on commercial aircraft and must participate in anger management classes or counseling, among other conditions.

Last year, Quinonez pleaded guilty to one count of interference with flight crew members and attendants, admitting that she assaulted a flight attendant by punching her in the face and head with a closed fist and grabbing her hair.

According to admissions in her plea agreement, on May 23, 2021, Quinonez was a passenger aboard Southwest Airlines Flight 700 from Sacramento International Airport to San Diego International Airport. During the flight’s final descent, Quinonez failed to comply with federal rules and regulations. She was not wearing her seat belt, pulled her tray table down, and was not wearing her facemask properly. Court documents state that Quinonez failed to comply when a flight attendant instructed her to fasten her seatbelt. A short time later, another flight attendant instructed Quinonez to fasten her seat belt and stow her tray table for her own safety and wear her mask correctly. Quinonez did not comply and talked back to the flight attendant while shouting profanities.

The plea agreement states Quinonez began filming the flight attendant on her cellphone and pushed the flight attendant. Quinonez admitted she stood up and intentionally assaulted the flight attendant. The assault was captured on video by another passenger sitting a few rows ahead of Quinonez. Several passengers attempted to stop Quinonez by grabbing at her clothing and arms. Court documents state that the passenger sitting directly in front of Quinonez told investigators that she believed she “softened the blows” by grabbing Quinonez’s arm. A male passenger sitting nearby jumped between Quinonez and the flight attendant, instructing Quinonez to sit down.

The flight attendant was taken to the hospital and sustained several injuries. Three of the flight attendant’s teeth were chipped, resulting in two teeth later being replaced by crowns. The flight attendant’s left eye was bruised and swollen; she sustained a cut under her left eye, requiring three stitches; and she had a bruise in the shape of fingers on her right forearm. Due to the assault, the flight attendant was not able to perform her normal safety and customer service duties.

In a letter filed with the court, the Vice President of Inflight Operations for Southwest Airlines stated that Quinonez “created a situation onboard Flight 700 that jeopardized the entire flight and created an unsafe environment.” She explained that Quinonez’s “actions negatively impacted our workgroup beyond description . . . causing fear to come permanently into the workplace.” The letter concluded, “Southwest hopes that the ultimate sentence imposed in this matter will serve as a deterrent for others who may contemplate engaging in similar dangerous behavior aboard our aircraft.”  

“Violence on aircraft endangers the lives of all onboard,” said U.S. Attorney Randy Grossman. “Attacks on flight crew members, who perform vital jobs to ensure passenger safety, will not be tolerated. We will pursue criminal charges against those who violate the law both at the airport and aboard aircraft while in flight.” Grossman commended the prosecution team, the agents and officers from FBI and San Diego Harbor Police, as well as the Transportation Security Administration and the Federal Aviation Administration for their excellent work on this case.

“Today’s sentence should send a very strong message to air travelers - the FBI will vigorously pursue anyone who assaults or interferes with flight crews,” said FBI Special Agent in Charge Stacey Moy. “I want to thank the Port of San Diego Harbor Police, the San Diego Airport Authority, the Federal Aviation Administration, the Transportation Security Administration, Southwest Airlines, and the United States Attorney’s Office for their collaboration and partnership in bringing this case to a resolution.”

If you believe you are a victim or a witness to a crime occurring aboard an aircraft, immediately report it to the FBI (https://www.fbi.gov/tips or call 1-800-CALL-FBI).

DEFENDANT                                               Case Number 21-CR-2816-TWR                           

Vyvianna M. Quinonez                                  Age: 29                                   Sacramento, CA

SUMMARY OF CHARGES

Interference with Flight Crew Members and Attendants – Title 49, U.S.C., 46504

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

INVESTIGATING AGENCIES

Federal Bureau of Investigation

San Diego Harbor Police

Transportation Security Administration

Federal Aviation Administration

SAN DIEGO – Eric Tyler Oxenham was sentenced in federal court today to 48 months in prison for robbing two San Diego banks in 2021 and violating the conditions of supervised release arising out of a prior conviction for felon in possession of a firearm.  Oxenham received a sentence of 41 months on the bank robberies and 18 months on the supervised release revocation, with 7 months to run consecutive to the bank robbery sentence, for a total of 48 months.

Oxenham pleaded guilty on February 2, 2022, admitting that he robbed the banks by presenting demand notes that threatened the tellers. He was apprehended by police officers after he fled the second robbery.

In his plea agreement, Oxenham admitted that, on September 24, 2021, he entered the California Bank and Trust, located at 1024 Graves Avenue in El Cajon, approached a teller and passed a demand note to the teller, which read, “Put 50’s and 100’s in the bag.” The teller provided Oxenham with approximately $432.00. Oxenham left the bank on foot, and ultimately fled the scene in a white rental car.

Oxenham also admitted that, on September 30, 2021, he entered a U.S. Bank, located at 610 W. Washington Street in San Diego, approached a teller, and presented the teller with a demand note. The note read, in sum and substance, “This is a robbery. Put the money in the envelope.” In response to Defendant’s demands, the victim bank teller provided Defendant with approximately $1,608.00 before Defendant then left the bank on foot.

Investigators used nearby residential surveillance footage to identify the getaway vehicle, and ultimately Oxenham, who was arrested pursuant to a warrant on October 27, 2021.

“Bank robberies are serious crimes that undermine the banking system and strike fear in bank staff and customers,” said U.S. Attorney Randy Grossman. “Thanks to our law enforcement partners, justice was served in this case and our community is safer.”   Grossman commended the prosecutors, FBI agents and San Diego Police Department officers who handled this matter.

“The San Diego FBI's Violent Crimes Task Force is committed to combatting violence on our streets and keeping our communities safe,” said FBI Special Agent in Charge Stacey Moy. “This sentence should serve as notice to anyone who believes they are free to commit crime without consequences - the FBI and our partners at the San Diego Police Department and the San Diego County Sheriff’s Department will utilize all available investigative resources to bring criminals to justice.” 

DEFENDANT                                               Case Number 22mj300                                            

Eric Tyler Oxenham                           Age: 27                                   Campo, CA

SUMMARY OF CHARGES

Interference with Commerce by Robbery – Title 18, U.S.C., Section 1951(a)

Maximum penalty: 20 years’ imprisonment and $250,000 fine

AGENCY

Federal Bureau of Investigations

San Diego Police Department

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

This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section.  Formed in 2019, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.  

 

SAN DIEGO – Jennings Ryan Staley, a physician who attempted to profit from the pandemic by marketing what he described as a “miracle cure” for COVID-19, was sentenced today to 30 days of custody and one year of home confinement for trying to smuggle hydroxychloroquine into the United States to sell in his coronavirus “treatment kits.”

Last year, Staley pleaded guilty to one count of importation contrary to law, admitting that he worked with a Chinese supplier to try to smuggle into the United States a barrel that he believed contained over 26 pounds of hydroxychloroquine powder by mislabeling it as “yam extract.” According to court documents, Staley also suggested this mislabeling technique to another supplier who declined, telling Staley, “sorry, we must do it legally.” 

Staley admitted that he intended to sell the hydroxychloroquine powder in capsules as part of his business venture selling COVID-19 “treatment kits” in March and April 2020, at the beginning of the global pandemic. According to sentencing documents, Staley also solicited investors for his scheme, promising one that he could “triple your money in 90 days.”

In his plea agreement, Staley admitted to writing a hydroxychloroquine prescription for one of his employees, misusing the employee’s name and personal identifying information. To fill the prescription for the increasingly scarce drug, Staley proceeded to answer pharmacists’ questions as though he were the employee, all without the employee’s knowledge or consent.

Staley marketed and sold his COVID-19 “treatment kits” to customers of his Skinny Beach Med Spas in and around San Diego.  Court documents relate that law enforcement began investigating Staley after receiving several tips from concerned citizens sparked by his marketing campaign. According to admissions in his plea agreement, Staley described his products—which included hydroxychloroquine—as a “one hundred percent” cure, a “magic bullet,” an “amazing weapon,” and “almost too good to be true” in conversations with an undercover FBI agent posing as a potential customer, and Staley stated that the products would provide at least six weeks of immunity. Staley acknowledged that these statements were material to the potential customer, and that as a doctor he abused a position of public trust and used a special skill in carrying out his scheme.

An undercover agent purchased six of Staley’s “treatment kits” for $4,000. Court documents explain that during a recorded phone call with the undercover agent, Staley not only made the false statements about the efficacy of his “treatment kits;” he also bragged that, “I got the last tank of . . . hydroxychloroquine, smuggled out of China, Sunday night at 1:00 a.m. in the morning . . . the broker . . . smuggled it out, so to speak, otherwise tricked Customs by saying it was sweet potato extract.” In a later phone call with the undercover agent, Staley spontaneously offered to throw in doses of generic Viagra and Xanax, which is a federally controlled substance. At no point did Staley ask any medical questions about the undercover agent’s purported family members, including the agent’s three supposed minor children.

Staley also admitted that he willfully impeded and sought to obstruct the federal investigation into his conduct by lying to federal agents.  Specifically, when interviewed by law enforcement, Staley falsely denied ever claiming that his “treatment kits” were a “one hundred percent effective cure,” adding “that would be foolish.”  Staley also falsely claimed that his medical practice would “absolutely” get all relevant information about each family member when sending out medications for a family treatment pack, when just a week earlier, he had dispensed a “family pack” of hydroxychloroquine, chloroquine, generic Viagra, Xanax, and azithromycin to the undercover agent without collecting any medical information from the agent or the agent’s five supposed family members.

U.S. District Judge Gonzalo P. Curiel also ordered Staley to pay a $10,000 fine and ordered forfeiture of the $4,000 paid by the undercover agent, as well as more than 4,500 tablets of various pharmaceutical drugs, multiple bags of empty pill capsules, and a manual capsule-filling machine.

“At the height of the pandemic, before vaccines were available, this doctor sought to profit from patients’ fears,” said U.S. Attorney Randy Grossman.  “He abused his position of trust and undermined the integrity of the entire medical profession. We are committed to enforcing the laws of the United States and protecting patients, including prosecuting doctors who choose to commit crimes.” Grossman commended the prosecution team and federal agents from FBI and FDA-OCI, who worked hard pursuing justice in this case.  He also commended U.S. Customs and Border Protection for its assistance with the investigation. 

“The defendant used a global pandemic to prey on the public’s fear by offering a 'cure' for COVID-19, and then lied to FBI agents about it,” said FBI Special Agent in Charge Stacey Moy. “I want to thank our federal partners at the U.S. Food and Drug Administration – Office of Criminal Investigations, U.S. Customs and Border Protection, and the United States Attorney’s Office for their collective efforts in bringing this defendant to justice.”  

“The FDA continues to work with its law enforcement partners to protect the public health by identifying, investigating and bringing to justice those who attempt to profit from the pandemic by offering and distributing COVID-19 treatments with unproven ‘miracle cure’ claims to American consumers,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office.

On May 17, 2021, Attorney General Merrick Garland established the COVID-19 Fraud Enforcement Task Force, led by the Deputy Attorney General, to bring together the full resources of the federal government to bolster fraud enforcement efforts.

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

DEFENDANT                                               Case Number 20-CR-1227-GPC                            

Jennings Ryan Staley, M.D.                           Age: 44                                   San Diego, CA

SUMMARY OF CHARGES

Importation Contrary to Law, in violation of Title 18, United States Code, Section 545

Maximum Penalty: Twenty years in prison; fine; special assessment

AGENCY

Federal Bureau of Investigation

U.S. Food and Drug Administration, Office of Criminal Investigations

U.S. Customs and Border Protection

A fourth member of a network that operated and facilitated a large-scale “grandparent scam” pleaded guilty to racketeering conspiracy.

According to court documents, Joaquin Lopez, 46, of Hollywood, Florida, was a member 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 close family relative. 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 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, mail and wire transfer, and then laundered the proceeds, including through the use of cryptocurrency.

“The Department of Justice’s Consumer Protection Branch will continue to investigate and prosecute criminals who target elderly Americans and take advantage of their concern for loved ones,” said Principal Deputy Assistant Attorney General Brian M. 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 in advancing the department’s efforts against organized elder fraud, and to the San Diego County District Attorney’s Office.”

“These defendants were part of a sophisticated criminal organization that exploited the tremendous love a grandparent has for a grandchild,” said U.S. Attorney Randy Grossman for the Southern District of California. “The victims were financially and emotionally devastated by callous people who thought only of enriching themselves. Because of the diligence of our prosecution team and law enforcement partners, these defendants have been brought to justice.”

“These guilty pleas are a prime example of the collaboration and coordination among our local, state and federal partners who make up San Diego’s Elder Justice Task Force, and the great work being done to protect our elderly population,” said Special Agent in Charge Suzanne Turner of the FBI’s San Diego Field Office. “The task force is committed to aggressively pursuing criminal organizations who prey on our senior citizens, and will utilize all available investigative means to bring them to justice. I would also like to thank the FBI’s Los Angeles Field Office for their continued support in this case.”   

Lopez pleaded guilty to conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act. He is scheduled to be sentenced on Aug. 19. He faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Two co-defendants remain pending for trial. Two additional defendants have been charged but remain at large.

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

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

The department’s extensive and broad-based efforts to combat elder fraud seeks 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 Justice Department’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.

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

NEWS RELEASE SUMMARY – May 25, 2022

SAN DIEGO – Two more members of a nationwide “grandparent scam” network have pleaded guilty to conspiracy charges under the Racketeer Influenced and Corrupt Organizations Act known as RICO.

Joaquin Lopez of Hollywood, Florida, pleaded guilty in federal court today; Anajah Gifford of North Hollywood, California, pleaded guilty on May 5, 2022. They are the third and fourth of eight defendants to plead guilty; two are pending trial and two are fugitives.

According to court documents, the defendants were members and associates of 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 and 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 defendant Joaquin Lopez’s plea agreement, Lopez used bank accounts under his control to funnel victim proceeds for codefendant Tracy Knowles.  As part of the guilty plea, Lopez agreed to forfeit $62,700 in proceeds from the offense.  Lopez will also be subject to an order of restitution to the victims of the offense in the amount of at least $136,500.

According to defendant Anajah Gifford’s plea agreement, Gifford conducted cash pick-ups from victims under codefendant Timothy Ingram’s direction, and helped Ingram pay unlawful proceeds to codefendant Knowles. She also recruited others to obtain additional bank accounts to receive money transfers from victims. As part of her guilty plea, Gifford agreed to forfeit $52,750 in proceeds she personally received from the offense and pay at least $1,235,406.93 to the victims in restitution.

“These defendants were part of a sophisticated criminal organization that exploited the tremendous love a grandparent has for a grandchild,” said U.S. Attorney Randy Grossman. “The victims were financially and emotionally devastated by callous people who thought only of enriching themselves. Because of the diligence of our prosecution team and law enforcement partners, these defendants have been brought to justice.”

“The FBI is proud to work with our local, state, and federal partners on San Diego’s Elder Justice Task Force to protect our elderly population with cases such as this,” said FBI Special Agent in Charge Stacey Moy. “Our senior citizens deserve better than to be targeted by these criminal organizations and we are committed to pursuing them regardless of where they are located.”

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

DEFENDANTS                                             Case Number 21cr2216-CAB                                       

Tracy Adrine Knowles                                   30        Orlando, Florida

Fugitive                                                         

Adonis Alexis Butler Wong                           30        Northbay Village, Florida

Fugitive

Timothy Ingram, AKA Bleezy                       29        North Hollywood, California

In custody.  Sentencing set for July 29, 2022.                                                                                         

Anajah Gifford                                                23        North Hollywood, California

In custody.  Sentencing set for August 26, 2022.

Lyda Harris                                                     74        Laveen, Arizona

Released on bond. Pending trial.

Joaquin Lopez                                                 46        Hollywood, Florida

Released on bond. Sentencing set for August 19, 2022.

Jack Owuor                                                     25        Paramount, California                                           

Released on bond.  Sentencing set for July 15, 2022. 

Tracy Glinton                                                 35        Orlando, Florida

Released on bond. Pending trial.

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

AGENCIES

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 Eric R. Olah (619) 546-7540

NEWS RELEASE SUMMARY – May 23, 2022

SAN DIEGO – U.S. Postal Service employee Dewayne Morris Sr. and his son and namesake are charged in federal court with multiple felony counts of bank fraud and conspiracy in connection with the theft of $5 million in Postal money order forms. 

Morris Sr. is charged along with his son, Dewayne Morris Jr., and four others, with conspiring to convert the stolen money order forms into cash. 

According to the indictment, Morris Sr., then a supervisor for post offices in Venice, Playa del Rey, and Marina del Rey, ordered and received 10,000 blank Postal money order forms.  A subsequent audit revealed that approximately 5,100 of those 10,000 money order forms were missing. With a maximum value of $1,000 per money order, the potential value of the missing money order forms is $5.1 million.  Contrary to Morris Sr.’s claim to investigators that he properly returned some of the 10,000 money order forms, the indictment alleges that his son, Morris Jr., distributed the missing money orders to co-conspirators.

The indictment further alleges that the money orders Morris Jr. distributed to co-conspirators were materially altered to appear as if they had been paid for and lawfully issued by a post office, when in fact they had not.  Morris Jr. also provided co-conspirators with counterfeit driver’s licenses bearing fictious identities.  The co-conspirators used those counterfeit documents to open checking and savings accounts at financial institutions throughout the country, deposited the stolen money orders into the accounts, and withdrew the cash proceeds before the financial institutions detected the fraud. 

In addition to the conspiracy charge, Morris Sr. and Morris Jr. are charged with three counts of bank fraud, each of which carries a statutory maximum of 30 years’ imprisonment.  Additionally, Morris Jr. is charged with a fourth bank fraud count and an aggravated identity theft count based on a separate scheme involving the personal identifiable information of others. 

“The indictment alleges that this father-and-son duo took advantage of the elder’s insider position to steal millions of dollars,” said U.S. Attorney Randy Grossman. “We and our law enforcement partners are committed to seeking justice in this case and others like it.”  Grossman thanked the prosecution team, U.S. Postal Inspection Service, and U.S. Postal Service Office of the Inspector General for their hard work on this case.

“The U.S. Postal Inspection Service remains steadfast in our commitment and dedication to investigate financial fraud and prevent the theft of Postal Service products from criminal attack,” said Carroll Harris, Inspector in Charge of the Los Angeles Division.  “We appreciate the collaborative efforts of our law enforcement partners, the U.S. Postal Service Office of the Inspector General, in bringing these defendants to justice.” 

DEFENDANTS                                             Case Number 22-CR-1037-WQH                           

Dewayne Morris, Senior                                             Age: 62                                   Inglewood, CA

Dewayne Morris, Junior                                             Age: 39                                   Inglewood, CA

SUMMARY OF CHARGES

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

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

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

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

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

Penalty: Mandatory two years in prison

Forfeiture – Title 18, U.S.C., Sections 981(a)(1)(C), 982(a)(2), 982(b) and Title 28 U.S.C. Section 2461(c)

AGENCIES

United States Postal Inspection Service

United States Postal Service, Office of the Inspector General

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

Assistant U. S. Attorney Shital H. Thakkar (619) 546-8785   

NEWS RELEASE SUMMARY – May 23, 2022

SAN DIEGO – Sylvester Andrews Jr. was sentenced in federal court today to 60 months in prison for possessing and ultimately attempting to use incendiary devices known as Molotov cocktails. Andrews attempted to use the Molotov cocktails by throwing them through the window of a National City residence, which was occupied by three juvenile victims who were home alone at the time. 

On May 20, 2018, the National City Police and Fire Departments responded to a vehicle fire outside of the victims’ residence. When personnel arrived, they found a vehicle completely engulfed in flames. Fire Investigators ultimately determined that the vehicle fire was set intentionally. A subsequent investigation showed beach towels were doused with liquid, possibly gasoline, and placed on the vehicle prior to the towels being set aflame.  The officers also noticed a window at the victims’ residence was broken, and after the car fire was extinguished, they conducted a welfare check. The officers discovered the threejuvenile victims and the Molotov cocktails which had not detonated. 

An investigation led by agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives revealed that Andrews had a dispute with a parent of the juvenile victims.  In the early morning hours of May 20, 2018, Andrews went to the victims’ residence and threw both Molotov cocktails through a bedroom window, neither of which ignited fully. 

The ATF Forensic Science Laboratory identified the liquid in both Molotov cocktails as gasoline. The use of surveillance cameras, text messages, DNA evidence, and other evidence revealed Andrews’ involvement. 

“This defendant’s actions put three children at great risk because of a grown-up grudge, and the price for that is prison,” said U.S. Attorney Randy Grossman. “This is a fitting sentence for an offender who used an explosive device to settle a score.” Grossman thanked the prosecution team, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the National City Police Department, National City Fire, and Carlsbad Police Department for their excellent work on this case.

“ATF has the expertise to determine the origin and cause of fires and explosions under the most challenging and complex circumstances due to its highly trained forensic investigators and its nationwide state-of-art laboratories,” said ATF Los Angeles Field Division Special Agent in Charge Monique Villegas. “ATF brings a unique set of resources to fire and explosives investigations, which includes special agent certified fire investigators, certified explosives specialists, and chemists among others. ATF will continue to collaborate with its local partners perfecting charges against individuals whose criminal actions devastate lives and destroy personal property.”

DEFENDANT                                               Case Number 20-cr-02942-AJB                            

Sylvester Andrews Jr.                         Age: 39                                   Spring Valley, CA

SUMMARY OF CHARGES

Malicious Damage to Buildings or Real Property Affecting Interstate, in violation of 18 U.S.C. § 844(i);

Possession of an Unregistered Destructive Device, in violation of 26 U.S.C. § 5861(d).

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

AGENCY

Bureau of Alcohol, Tobacco, Firearms and Explosives

National City Police Department

National City Fire Department

Carlsbad Police Department

*This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section.  Formed in 2019, the VCHT is tasked with leading collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.

Assistant U. S. Attorney Alexandra F. Foster (619) 546-6735

NEWS RELEASE SUMMARY – May 19, 2022

SAN DIEGO – Chenyan Wu and Lianchun Chen, a married couple who worked as research scientists for a major American pharmaceutical company, pleaded guilty in federal court today to criminal charges stemming from their efforts to gather confidential mRNA research from that company to advance the husband’s competing laboratory research in China.

The couple has been married since at least 1993. During his career, Wu had worked for multiple pharmaceutical companies, including the major one identified in court records only as “Company A,” where his wife also worked. In 2010, Wu moved to China, and in 2012, he opened a laboratory there, which he named TheraMab. TheraMab focused on mRNA vaccine research.

While her husband was in China, Chen remained in the United States, working for Company A in San Diego from at least 2012 through September 9, 2021. During that time, her research for Company A focused on mRNA vaccines.

According to her plea agreement, from as early as November 2013, through at least June 2018, Chen repeatedly accessed Company A computers and copied confidential Company A materials. She knew she was not allowed to copy these materials, much less provide them to an individual outside the company. Chen emailed those confidential Company A materials to her husband in China over her personal Hotmail account. These confidential Company A materials included PowerPoints and Word documents with DNA and mRNA sequencing data, marked “[Company A] Confidential” and “from [Company A] Vaccine Research & Development.” By 2013, Wu was no longer employed by Company A. He had started TheraMab, a competing laboratory in China focused on mRNA research.

In February 2021, Wu shut down TheraMab in China and attempted to move his laboratory to the United States.  He packed up its contents into five suitcases. On May 8, 2021, Wu arrived with the five suitcases at Seattle-Tacoma International Airport on Delta Flight 288, originating in Shanghai, China. He planned to transit through Seattle and had a flight home to San Diego later that day.

Upon entry into the United States, Wu filled out a U.S. Customs form. He did not declare any biological or chemical items on the form, nor did he declare these items in person to the Customs officer while going through Customs Inspection.

While inspecting the defendant’s suitcases, officers discovered chemical and biological samples, medical/biological equipment, and research documentation, all of which had been undeclared and was improperly packaged. They detained the items. Initial inspection revealed about 700 to 1,000 unlabeled centrifuge tubes, which appeared to contain proteins and multiple containers of lab chemicals. Labeled samples appeared to include potentially hazardous materials. In fact, one bottle contained a warning photo with the skull and crossbones image and the words “harmful if swallowed … toxic if inhaled.”  Another bottle contained the warning statements “fatal if inhaled … harmful if swallowed.” Customs and Border Protection (CBP) officials seized all five suitcases.

FBI Seattle’s Hazardous Evidence Response Team (HERT) deployed to Seattle Tacoma International Airport to help CBP inventory the items, field screen them for biological and chemical materials, and collect them as evidence. CBP transferred custody of the items to the Seattle HERT, which then repackaged the items safely and submitted them to an FBI laboratory for further analysis.

On May 18, 2021, FBI Agents interviewed Wu at his home in San Diego. Agents showed Wu a copy of the Customs form that he had filled out. Wu acknowledged that he understood the importance of those forms; he knew he needed to fill out this form accurately; and he acknowledged that he knew the proper ways to ship chemicals internationally. Wu added that China had strict rules and paperwork to ship to the United States and that was why he wanted to “take a gamble to be honest” when he brought chemicals and biological materials illegally into the United States in his luggage.

On June 25, 2021, the FBI Laboratory Division Scientific Response and Analysis Unit issued a report identifying imidazole, nickel sulfate, ethidium bromide, ammonium persulfate and chloroform in the bottles, which Wu brought with him from China. These are all identified as hazardous materials under U.S. Department of Transportation regulations and must be reported upon entry into the United States.

Chen is scheduled to be sentenced on August 11, 2022, before U.S. Magistrate Judge Andrew Schopler. Wu is scheduled to be sentenced on August 12, 2022, before U.S. District Judge Cathy Ann Bencivengo.

“These are serious computer fraud and smuggling crimes,” said U.S. Attorney Randy Grossman. “One defendant failed to protect her employer’s confidential and important research, and instead used it to her and her husband’s advantage. Compounding the harm, the other defendant put travelers in harm’s way by illegally transporting his laboratory’s hazardous chemicals back to the United States.” Grossman thanked the prosecution team, the FBI and Customs and Border Protection for their excellent work on this case.

“The defendants used their placement and access to obtain and illegally share confidential lab research for their own benefit,” said FBI Special Agent in Charge Stacey Moy. “Their attempt to smuggle hazardous material into the United States was thankfully foiled by Customs and Border Protection upon entry. The FBI is proud to work with our federal partners and I specifically want to thank Customs and Border Protection at Seattle Tacoma International Airport, FBI Seattle’s Hazardous Evidence Response Team, and the FBI Laboratory’s Scientific Response and Analysis Unit for their valuable assistance in this case.” 

DEFENDANTS                                             Case Number 22CR00052-CAB                              

Chenyan Wu (1)                                             Age: 58                       San Diego, CA

Lianchun Chen (2)                                          Age: 51                       San Diego, CA

SUMMARY OF CHARGES

Wu - Smuggling Goods (18 U.S.C. § 545)

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

Chen – Computer Fraud (18 U.S.C. § 1030(a)(2)(C))

Maximum penalty: One year in prison and $250,000 fine

AGENCY

Federal Bureau of Investigation

Homeland Security Investigations

Customs and Border Protection

Assistant U.S. Attorney Kevin Mokhtari (619) 546-8402

NEWS RELEASE SUMMARY – May 18, 2022

SAN DIEGO – Gustavo De Avila Moreira Farinha today became the last of five Brazilian nationals to plead guilty in a nationwide fraud and identity theft scheme.

De Avila pleaded guilty before U.S. Magistrate Judge Jill Burkhardt to wire fraud conspiracy, money laundering and multiple aggravated identity theft charges.

In May 2021, five Brazilian nationals, including De Avila, were charged 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 customers of those companies.

According to his plea agreement, 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 significant increase in demand.  De Avila and his co-conspirators exploited the surge in demand by creating new 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. 

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 were 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. 

“As of today, all five defendants in this case have admitted their elaborate scheme to steal the identities of hundreds of unsuspecting victims, many of whom turned to food delivery services to survive the pandemic,” said U.S. Attorney Randy Grossman. “Identity theft can be a nightmare of frustration and angst for victims who struggle to reclaim their good names. These defendants are the ones struggling now.” Grossman thanked the prosecution team and agents from Homeland Security Investigations for their excellent work to achieve justice in this case.

“Today’s guilty plea is an example that this type of criminal conduct will not be tolerated,” said HSI San Diego acting Special Agent in Charge Juan Munoz. “Homeland Security Investigations agents will continue to investigate allegations of wire fraud, money laundering, and identity fraud to ensure those who participate in these illegal activities will be brought to justice. We also remain committed to working with the prosecutors to bring charges against anyone who deliberately harms and deceives others for their own personal profit.”

Sentencing for De Avila is scheduled for August 29, 2022, at 8:30 a.m. before U.S. District Judge Gonzalo P. Curiel. 

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., 1028A

Maximum Penalty: Mandatory-minimum two years in prison, to run consecutively to the specified felony.

AGENCY

Homeland Security Investigations

Assistant U. S. Attorneys Lawrence A. Casper (619) 546-6734, Paul Benjamin (619) 546-7579, James Redd (619) 546-9661

NEWS RELEASE SUMMARY – May 16, 2022

SAN DIEGO – A federal drug investigation has resulted in the discovery of a sophisticated cross-border tunnel and charges against six people for conspiring to distribute 1,762 pounds of cocaine.

The subterranean passageway, stretching from Tijuana, Mexico to a warehouse in Otay Mesa just east of the Port of Entry, is estimated to be about 1,744 feet long, 61 feet deep and 4-feet in diameter, with reinforced walls, a rail system, electricity and a ventilation system.

The defendants include Mario Jaramillo of Huntington Beach; Adrian Enriquez of Perris, Calif.; Juan Cruz of San Ysidro; and Vanessa Ramirez, Luz de Luna Olmos and Manuel Perez of San Diego. All are charged with cocaine trafficking; Olmos and Ramirez are also charged with methamphetamine and heroin trafficking. In addition to the 1,762 pounds of cocaine, authorities seized 164 pounds of methamphetamine and 3.5 pounds of heroin.

READ the complaint

The tunnel was discovered just after midnight on Friday by U.S. law enforcement officials from Homeland Security Investigations who were conducting surveillance on a National City residence that was previously used as a stash house in a cocaine smuggling event on March 2. That event had resulted in the arrest of one person and the seizure of 28 kilograms of cocaine.

According to the federal complaint, at about 11:45 a.m., officials observed as Olmos and Ramirez drove away from that National City residence in a silver Nissan Frontier pickup truck to Harbor Freight Tools store in Chula Vista, where they retrieved large cardboard boxes from a dumpster and put them into the pickup truck.

The women then entered the Harbor Freight Tools store and purchased wheeled carts that are typically used to move heavy items, the complaint said. They later returned to the residence in the pickup truck and removed the boxes from the back of the pick-up bed and carried them inside the residence. At about 1:20 p.m., Olmos left the residence and drove to a Walmart store, where she purchased additional cardboard boxes and transported them back to the residence.

At approximately 2:30 p.m., Ramirez drove the pickup away from the residence to a warehouse located at 9986 Via De La Amistad, Unit A, in San Diego. The warehouse is approximately 300 feet north of the U.S.-Mexico border fence.

Ramirez drove the pickup into the bay of the warehouse and the roll-up door was shut immediately after. At approximately 4:40 p.m., the warehouse door opened. Ramirez exited the warehouse in the pickup and drove back to the residence with law enforcement conducting surveillance.

In the hours that followed, law enforcement officials saw five other cars come and go from either the residence, the warehouse or both. Those vehicles were ultimately stopped by law enforcement, drugs were seized from the vehicles and the residence, and defendants associated with the cars and or residence were arrested.

Upon searching the warehouse, agents uncovered the sophisticated cross-border tunnel exit point carved out of the cement floor.

“There is no more light at the end of this narco-tunnel,” said U.S. Attorney Randy Grossman. “We will take down every subterranean smuggling route we find to keep illicit drugs from reaching our streets and destroying our families and communities.”

Grossman thanked the prosecution team, HSI San Diego Costa Pacifico Money Laundering Task Force, and its partners from the San Diego Sheriff’s Department, Drug Enforcement Administration, and Customs and Border Protection for their excellent work on this case. “This tunnel was discovered because of the patience and tenacity of federal agents who are passionate about protecting their communities from the scourge of drug addiction and related violence.”

“The San Diego law enforcement community has multiple investigative task forces that highly prioritize tunnel detection- exemplified by this tunnel discovery by the Homeland Security Investigations (HSI) San Diego led Costa Pacifico Money Laundering Task Force,” said HSI San Diego Special Agent in Charge Chad Plantz. “The San Diego law enforcement community throughout the years has consistently shown its ability to detect and remediate tunnels while bringing those responsible to justice.”

There have been 90 subterranean passages discovered in the Southern District of California since 1993. Of those, 27 were considered sophisticated. The last tunnel discovered in the Southern District of California was in March 2020.

The defendants are scheduled to be arraigned this afternoon by U.S. Magistrate Judge Jill Burkhardt.

The discovery of the tunnel resulted from an ongoing investigation by members of the San Diego Costa Pacifico Money Laundering Task Force, which include Homeland Security Investigations, San Diego Sheriff’s Department, Drug Enforcement Administration, Customs and Border
Protection and the United States Attorney’s Office. 

DEFENDANTS                                             Case Number 22mj01680                                        

Mario Jaramillo                      55                    Huntington Beach

Adrian Enriquez                     31                    Perris

Manuel Perez                          49                    San Diego

Juan Cruz                                48                    San Ysidro

Vanessa Ramirez                    31                    San Diego 

Luz de Luna Olmos                43                    San Diego

SUMMARY OF CHARGES

Count 1: Conspiracy to Distribute Cocaine (all six defendants) – Title 21, U.S.C., Sections 841 and 846;

Maximum penalty: Mandatory minimum sentence of 10 years and maximum of life in prison and $1 million fine

Count 2: Conspiracy to Distribute Methamphetamine (Olmos and Ramirez) – Title 21 U.S.C. Sections 841 and 846;

Maximum penalty: Mandatory minimum sentence of 10 years and maximum of life in prison and $1 million fine

Count 3: Conspiracy to Distribute Heroin (Luz de Luna Olmos & Vanessa Ramirez) – Title 21 U.S.C. Sections 841 and 846;

Maximum penalty: Mandatory minimum sentence of 10 years and maximum of life in prison and $1 million fine

AGENCIES

Homeland Security Investigations

San Diego Sheriff’s Department

United States Border Patrol

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

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

NEWS RELEASE SUMMARY – May 12, 2022

SAN DIEGO – Gannon Giguiere and Oliver Lindsay were sentenced to prison today for participating in a pump-and-dump securities fraud scheme.  Lindsay, who lived in the Cayman Islands at the time of his arrest, received a 17-month prison sentence, and Giguiere, from Laguna Beach, California, was sentenced to 12 months in prison. 

When Giguiere pleaded guilty in 2019, he admitted to manipulating the market for the stock of Kelvin Medical, Inc., a small medical device company.  Giguiere conspired to pump up the price and volume of these stocks through manipulative trading and/or a stock promotion website designed to get unwitting investors interested in buying the stock. After the stock prices rose and he dumped the shares, Giguiere pocketed more than $1.4 million in fraudulent proceeds from these schemes. Lindsay also pleaded guilty in 2019, admitting that he engaged in manipulative trading with the same goal – to artificially increase the price and trading volume of Kelvin Medical stock. 

In handing down the sentence, U.S. District Judge William Q. Hayes also ordered defendants to make restitution payments to victims of their scheme in the amount of $187,893.43.

“These are fitting sentences for defendants who caused significant harm to investors,” said U.S. Attorney Randy Grossman. “I trust that this will deter others who would participate in schemes that harm the integrity of the United States financial markets.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.

“The FBI is committed to investigating those who prey on unsuspecting investors for their own financial gain,” said FBI Special Agent in Charge Stacey Moy. “These defendants will now face the consequences for their coordinated investment fraud scheme.”

DEFENDANTS                                             Case Number 18cr3071-WQH                         

Gannon Giguiere                                            Age: 49                                   Laguna Beach, CA

Oliver Lindsay                                                Age: 44                                   Vancouver, Canada

SUMMARY OF CHARGES

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

AGENCY

Federal Bureau of Investigation

Assistant U. S. Attorney Eric R. Olah (619) 546-7540    

NEWS RELEASE SUMMARY – May 11, 2022

SAN DIEGO – Nehemiah Joel Weaver was indicted by a federal grand jury for using stolen personal information of University of California San Diego students in furtherance of bank and pandemic unemployment insurance fraud schemes.

Weaver is charged with 60 felony counts, including bank fraud, mail fraud, wire fraud, aggravated identity theft, extortion, and obstruction of justice. 

Weaver’s co-defendant, Mia Nikole Bell, entered a guilty plea last week to one count of felony bank fraud.  In her plea agreement, Bell admitted that when she was an employee at UCSD, she stole the personal identifiable information (“PII”) of at least eight students and shared it with the intent to facilitate a bank fraud scheme.  Bell’s sentencing is set for August 15, 2022.

The indictment charges Weaver with using identities he obtained from Bell and other sources.  Specifically, Weaver used stolen identities to apply for accounts and loans at a financial institution, to obtain more than $200,000 in benefit payments from the State of California’s Employment Development Department (“EDD”), and to defraud the State of Arizona’s Department of Economic Security (“DES”) out of more than $27,000.

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

Additionally, the indictment includes an extortion charge based on text messages Weaver sent to an acquaintance demanding money and threatening that a third person would be “charged with fraud.”  The indictment also includes an obstruction of justice count based in part on Weaver sending to a victim a photograph of the victim’s minor daughter along with text messages reading “Lol so dead you don’t even know it yet” and “Can’t wait to see the look on your face.  Paid good money to see it.”

U.S. Magistrate Judge Barbara L. Major ordered Weaver detained pending trial based on a serious risk of flight and danger to the community.  The next court hearing is a Motion Hearing and Trial Setting before U.S. District Judge Gonzalo P. Curiel on June 13, 2022.

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

DEFENDANTS                                             Case Number 21-CR-2722-GPC                             

Nehemiah Joel Weaver                                               Age: 36                                   San Diego, CA

Mia Nikole Bell                                                          Age: 31                                   Houston, TX

SUMMARY OF CHARGES

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

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

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

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

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

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

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

Penalty: Mandatory two years in prison

Extortion – Title 18, U.S.C., Section 875(d)

Maximum penalty: Two years in prison

Obstruction of Justice – Title 18, U.S.C., Section 1503

Maximum penalty: Ten years in prison; $250,000

Forfeiture – Title 18, U.S.C., Sections 981(a)(1)(C), 982(a)(2), 982(b) and Title 28 U.S.C. Section 2461(c)

AGENCIES

United States Secret Service

San Diego Police Department

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

A third member of a network that operated and facilitated a large-scale “grandparent scam” pleaded guilty to racketeering conspiracy.

According to charges announced in August 2021, Anajah Gifford, 23, of North Hollywood, California, was a member of a network of individuals who, through extortion and fraud, induced elderly Americans across the United States to pay thousands to tens of thousands of dollars each to purportedly help their grandchild or other close family relative. 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 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, mail and wire transfer) and laundered the proceeds, including through cryptocurrency.

“The Department of Justice’s Consumer Protection Branch will pursue and prosecute individuals who target older Americans by preying on their concern for 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 in advancing the department’s efforts to combat organized elder fraud, and for the assistance the San Diego County District Attorney’s Office provided with this investigation.”

“This was a despicable scam that packed an emotional punch for its elderly victims,” said U.S. Attorney Randy Grossman of the Southern District of California. “It’s heartless to tell grandparents they must pay tens of thousands of dollars to rescue their beloved grandchildren from terrible trouble. These are serious crimes and there should be serious penalties.” Grossman thanked the prosecution team, state and federal law enforcement agency partners, and the Department of Justice’s Consumer Protection Branch for their excellent work on this case.

“These guilty pleas are a prime example of the collaboration and coordination among our local, state, and federal partners who make up San Diego’s Elder Justice Task Force, and the great work being done to protect our elderly population,” said Special Agent in Charge Suzanne Turner of the FBI San Diego Field Office. “The task force is committed to aggressively pursuing criminal organizations who prey on our senior citizens, and we will utilize all available investigative means to bring them to justice. I would also like to thank the FBI’s Los Angeles Field Office for their continued support in this case.”   

Gifford pleaded guilty to conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act. She is scheduled to be sentenced on August 5.  She faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Three co-defendants remain pending for trial. Two additional defendants have been charged but remain at large.

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

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

The department’s extensive and broad-based efforts to combat elder fraud seeks 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.

Assistant U. S. Attorney Dylan M. Aste (619) 546-7621

NEWS RELEASE SUMMARY – May 9, 2022

SAN DIEGO – Prism Behavioral Solutions has paid $650,000 to resolve allegations that it billed the state’s Medicaid Program, known as Medi-Cal, for services to autistic children without actually providing care to the children, according to a settlement agreement signed by Prism Behavioral Solutions, the United States, and the State of California.

Prism Behavioral Solutions provides treatment to children diagnosed with autism and other related disorders through therapy called Applied Behavioral Analysis. Prism Behavioral Solutions maintains a corporate address in Woodland Hills, California, and provides medical services to patients in Southern California. The United States and the State of California alleged that Prism Behavioral Solutions violated the federal False Claims Act and the California False Claims Act by knowingly submitting false claims to Medi-Cal for medical services that Prism Behavioral Solutions did not perform from September 2016 through December 2019. According to a whistleblower’s complaint, this included Prism Behavioral Solutions billing Medi-Cal for cancelled appointments.

“Billing government health care programs for services not rendered negatively impacts the entire health care system,” said U.S. Attorney Randy S. Grossman. “This settlement shows our continuing commitment to protect the integrity of government health care programs and other taxpayer-funded programs. We commend the whistleblower in this case for coming forward, and the team of federal and state agency partners and Assistant U.S. Attorneys for their work on this case.”

This settlement resolves the allegations in a former Prism Behavioral Solutions employee’s whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which permit private individuals to sue for false claims on behalf of the government and to share in a recovery. The civil lawsuit was filed in the Southern District of California and is captioned United States and the State of California, ex rel. Mason v. Prism Autism Foundation, 19-CV-0043-W (BLM). As part of this settlement, the whistleblower will receive $130,000.

“Prism had the important responsibility of supporting and caring for children and young adults with autism spectrum disorders,” said Attorney General Rob Bonta. “Instead of fulfilling its obligation to the families under its care, Prism is alleged to have filed false claims and misused state taxpayer money. These allegations are shameful and these families deserved respect and dignity, not to be used to cheat state resources. I am grateful to the U.S. Attorney’s Office for their involvement in this investigation, which helped bring justice to these families and California taxpayers. My office will continue to hold accountable bad actors who hurt the health and well-being of Californians.”

The resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

This matter was handled by Assistant U.S. Attorney Dylan M. Aste of the U.S. Attorney’s Office for the Southern District of California; the Office of Inspector General for the U.S. Department of Health and Human Services; and the California Department of Justice, Division of Medi-Cal Fraud and Elder Abuse.

The claims resolved by this settlement are allegations only and there has been no determination of liability.

Assistant U. S. Attorney Joseph Orabona (619) 546-7951

NEWS RELEASE SUMMARY – April 26, 2022

SAN DIEGO – Jonathan Madison of San Diego was sentenced in federal court yesterday to 100 months in prison for knowingly recruiting, advertising, and soliciting a teenage girl to engage in commercial sex acts.

Madison pleaded guilty in February 2021. In his plea agreement, Madison admitted that he transported underage girls and women and provided them to customers for commercial sex acts, which took place in California and Colorado from November 2017 through April 2020. During this time, Madison transported, provided, maintained, and obtained an underage girl (while she was 15 and 16 years old) for the purpose of her to engage in commercial sex acts, including in San Diego County. As part of his human trafficking activities, Madison caused online advertisements of the underage girls and women to be posted on various websites for customers to solicit them for commercial sex.

Madison also admitted that he videotaped himself having sexual intercourse with an underage girl and later transmitted the video to her by cell phone.

Madison, aka “Jay Jay,” “Boobutt,” and “JT,” was arrested in April 2020 on sex trafficking charges and ordered detained without bond by the Court. A federal grand jury returned an indictment in May 2020 against Madison charging him with sex trafficking of a minor.

“This is a fitting sentence for a man engaged in trafficking of children,” said U.S. Attorney Randy Grossman. “Our office will continue to seek justice when our community’s most vulnerable victims are subjected to these heinous crimes.” Grossman thanked the prosecution team and members of the San Diego Human Trafficking Task Force for their excellent work on this case.

“Today’s sentence sends a strong message to those who intentionally target and victimize children,” said FBI Special Agent in Charge Stacey Moy. “The FBI and our law enforcement partners on the San Diego Human Trafficking Task Force will use all investigative resources to identify and prosecute those who prey on minors.”  

Madison has been detained in custody since his arrest in April 2020.

At the sentencing hearing today, U.S. District Judge Cynthia A. Bashant not only imposed the 100-month prison sentence, but also ordered Madison to serve a five-year term of supervised release and to pay a $5,000 mandatory penalty assessment pursuant to the Justice for Victims of Trafficking Act. Madison will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.

DEFENDANT                                   Case Numbers: 20CR1228-BAS

Jonathan Madison                               Age: 31           San Diego, CA

SUMMARY OF CHARGES

Sex Trafficking of a Minor, in violation of Title 18, United States Code, Section 1591

Maximum Penalties: 10-year mandatory minimum and a maximum of life in prison; mandatory Sex Offender Registration; a maximum term of supervised release of life; mandatory restitution to the victims.

INVESTIGATING AGENCIES

San Diego Human Trafficking Task Force, which consists of:

• Federal Bureau of Investigation
• California Department of Justice
• California Department of Corrections & Rehabilitation – Parole
• California Highway Patrol
• ICE/Homeland Security Investigations
• National City Police Department
• San Diego City Attorney’s Office
• San Diego County District Attorney’s Office
• San Diego County Probation Department
• San Diego County Sheriff’s Department
• San Diego Police Department
• The United States Attorney’s Office, Southern District of California