Southern District of California

Media Relations Director Kelly Thornton (619) 546-9726 or Kelly.Thornton@usdoj.gov    

NEWS RELEASE SUMMARY – April 20, 2022

SAN DIEGO – The U.S. District Court has appointed Randy S. Grossman to remain as the U.S. Attorney for the Southern District of California.

“It is a tremendous honor and privilege to serve as the U.S. Attorney,” Grossman said. “I am grateful to the district judges for appointing me to serve in this special role, and I’m proud to work beside members of this talented office and our law enforcement community to protect our district and seek justice on behalf of the United States”

Grossman, who previously served as the First Assistant U.S. Attorney, began serving as Acting U.S. Attorney upon the resignation of former U.S. Attorney Robert Brewer on February 28, 2021. Attorney General Merrick Garland then appointed Grossman to be the interim U.S. Attorney, effective December 26, 2021, and Grossman was to serve in that role for 120 days. The United States District Judges in the Southern District of California have voted to appoint Grossman as U.S. Attorney until the appointment and qualification of a successor to the Southern District of California as provided by law. An order signed by the district court judges was entered on April 19, 2022, and Grossman’s appointment under that order becomes effective on April 25, 2022.

The Southern District of California encompasses San Diego and Imperial Counties. The U.S. Attorney serves as the chief federal law enforcement official for the district.

Grossman joined the U.S. Attorney’s Office in March 2020. He served in the Border Enforcement Section and the Major Frauds & Public Corruption Section. He was selected to become First Assistant U.S. Attorney in September 2020.

Grossman began his legal career as a Deputy District Attorney for Ventura County and then San Diego County. During his more than eight years as a state prosecutor, Grossman tried more than 70 cases, including homicides and other crimes of violence. Grossman also worked in private practice as a partner at two international law firms. His practice areas included complex civil litigation, white collar criminal defense, corporate internal investigations and pro bono representation of refugees seeking asylum.

Assistant U. S. Attorney Nicholas Pilchak (619) 546-9709  

NEWS RELEASE SUMMARY – April 20, 2022

SAN DIEGO – Three men were sentenced in federal court today for engaging in a years-long, nation-wide fraud conspiracy that stole victims’ financial information from ATMs and gas pumps in San Diego and across the country, and then used the stolen information to make fake credit and debit cards.

Davit Simonyan was sentenced to 46 months in prison, together with forfeiture of $642,347.16 and restitution of $116,408.00. His brother, Vahram Simonyan, was sentenced to 33 months in prison, forfeiture of $642,053.31, and identical restitution. Arsen Galstyan was sentenced to 18 months in prison and $47,796.00 in forfeiture and an identical restitution award, based on his conviction for fraud.

Including today’s defendants, a total of seven people have admitted to participating in the conspiracy, and in a related money laundering conspiracy, that together netted over $1 million in ill-gotten gains.

In sentencing the men, U.S. District Judge Michael M. Anello observed that “this was a huge criminal enterprise, nationwide.” 

Throughout the scheme, the coconspirators stole unwitting victims’ credit and debit card information by using skimming devices installed in common points of sale such as gas pumps and ATMs.  With the stolen information in hand, the conspirators made a host of unauthorized cards that they then used to buy postal money orders and make withdrawals from victims’ accounts. According to court documents, the fraud victimized consumers in New York, Illinois, Missouri, Oklahoma, and across Southern California, including in San Diego. 

The defendants’ scheme inflicted both real and attempted losses of at least $1.2 million, according to their plea agreements.  The two lead defendants—brothers Davit and Vahram Simonyan—each admitted to obtaining over $642,000 in stolen money over the course of the conspiracy, which stretched from 2017 to 2020. They also acknowledged structuring their withdrawals from the banks to avoid bank reporting requirements.  For example, in one month alone, the Simonyan brothers withdrew $91,500 in cash from a single bank account. 

Davit Simonyan also staged a phony car accident in order to commit insurance fraud, according to his plea agreement.  He planned an accident involving cars insured by two of his codefendants, including Arsen Galstyan, who was also sentenced today.  Then Simonyan had one of the damaged vehicles repaired at a collision shop owned by an unindicted co-conspirator who kicked back thousands of dollars to Simonyan and his brother as part of their money laundering scheme.  Davit Simonyan admitted that by staging a car accident, he caused the reckless risk of serious bodily injury. 

“Identity thieves may believe that they can make easy money by stealing from unwitting victims in our community,” said U.S. Attorney Randy Grossman. “But this office will ensure that those defrauding the public will be brought to justice.”  Grossman thanked the prosecution team, the U.S. Secret Service and the U.S. Postal Inspection Service for their excellent work on this case.

“We are thankful to all those who partnered with us in the investigation and prosecution of this organized criminal network. The Secret Service, along with our collaborative law enforcement partners, continue to work tirelessly investigating this type of skimming case, which targets unsuspecting victims,” said San Diego Acting Special Agent in Charge Timothy Scott. “We will continue to use all investigative means necessary to bring to justice those perpetrating these crimes.”

“Today’s sentencing is an example of our commitment and dedication to protect the American public from becoming victimized and to prevent Postal Service products from criminal attack and misuse,” said Carroll Harris, Inspector in Charge of the Los Angeles Division of the U.S. Postal Inspection Service.  “Working with our law enforcement partners we seek to stop these criminals and hold them accountable for their actions.”  

Other conspirators to face sentencing have all received prison time.  On April 21, 2021, co-defendant Arsen Minasyan was sentenced by U.S. District Judge Michael M. Anello to 37 months in custody.  He was ordered to forfeit $75,145.90 and to pay restitution to victims in the amount of $109,834.14.  Judge Anello sentenced co-defendant Mukuch Mkrtchyan on October 14, 2021, to 24 months in prison, forfeiture of $28,077.11, and restitution of $116,070.  Co-defendant Smbat Shahinyan was also sentenced to 24 months in prison and similar financial penalties on January 12, 2022.

The remaining defendant, Gor Plavchyan, is scheduled to be sentenced on May 4, 2022.

Anyone who believes that they may be a victim of this offense can visit the U.S. Department of Justice’s large case website for more information: www.justice.gov/largecases. 

DEFENDANTS                                 Age                             Case Number 20cr314-MMA                  

1. Davit Simonyan                            30                                                      Residence: Glendale, California
2. Vahram Simonyan                        34                                                      Residence: Glendale, California
3. Arsen Minasyan                            34                                                      Residence: Terminal Island FCI
4. Gor Plavchyan                              26                                                      Residence: Winnetka, California
5. Arsen Galstyan                             40                                                      Residence: Glendale, California
6. Mukuch Mkrtchyan                      32                                                      Residence: Fair Oaks, California
7. Smbat Shahinyan                          41                                                      Residence: Glendale, California

SUMMARY OF CHARGES

Conspiracy to Launder Monetary Instruments, in violation of Title 18, United States Code, Section 1956(h) (Defendants 1 through 3 only)

Maximum Penalty: twenty years in prison; fine of $500,000 or twice the value of the property involved

Conspiracy to Possess Fifteen or More Unauthorized Access Devices, in violation of Title 18, United States Code, Sections 1029(b)(2), 1029(a)(3), and 1029(c)(1)(A)(i) (Defendants 1 and 3–7 only)

Maximum Penalty: five years in prison; fine of $250,000 or twice the gross gain or loss

AGENCY

United States Secret Service

U.S. Postal Inspection Service

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 – April 20, 2022

HONOLULU, Hawaii – A federal jury has found former Big Island pain doctor Rudolph B. Puana guilty of all 38 counts of an indictment charging him with conspiracy to distribute oxycodone and fentanyl and distribution of oxycodone and fentanyl outside the course of professional practice and without a legitimate medical purpose.  Immediately following the jury’s verdict, Chief District Judge J. Michael Seabright ordered Puana to be remanded into custody. 

Following a three-week trial, the jury deliberated for less than one day and convicted Puana of distributing substantial quantities of oxycodone, a Schedule II controlled substance, to his close friends to sell to pay for tuition at one of the most expensive private schools in the State of Hawaii and to purchase cocaine. The jury also found that Puana provided another friend with oxycodone and fentanyl to pay for cocaine they used to party together on Oahu.  Prior to the jury trial, Puana pleaded guilty to being an addict in possession of approximately seven firearms.  At the guilty plea hearing on March 28, 2022, Puana admitted that between 2014 and 2018 he was addicted to hydrocodone, a Schedule II controlled substance, while possessing the seven firearms, which included handguns, rifles, and a shotgun. 

During the trial, the United States proved that Puana used cocaine with his friends and introduced his best friend to Puana’s “trinity”—cocaine, opioids, and alcohol—which combined to prolong and even out the “high.” Puana also popped hydrocodone pills—which he referred to as his “skittles”—in front of one of his friends.  Puana said he obtained his “skittles” from the “doctor’s candy store.”  Puana also left his script pad with his best friend and falsified medical records to legitimize a medical purpose for the substantial amount of oxycodone he provided to his friends.  While addicted and abusing drugs, Puana distributed more than 7,810 oxycodone 30mg pills to his friends so that they could sell them to pay for tuition and cocaine. The street value of the oxycodone he supplied to his friends exceeded $117,000.

To conceal his crimes, Puana fabricated handwritten medical records for his closest friends, which included false drug tests.  During their testimony, Puana’s friends admitted that Puana was not their pain doctor and that they had never gone to his clinic (previously the Puana Pain Clinic) for any medical visits, even though Puana falsely documented that they were examined there. In addition to falsifying the clinic’s files, Puana also kept a secret notebook hidden in the clinic’s drug closet. The notebook was handwritten by Puana to cover up his multi-year addiction to hydrocodone. 

“The unlawful diversion of prescription drugs is one of the most serious problems plaguing our communities, and it is fueling the opioid epidemic that is ravaging families across the country,” said U.S. Attorney Randy S. Grossman. “The conviction of a pain doctor abusing his power and position to distribute highly addictive and dangerous oxycodone and fentanyl sends a strong message to any medical professional acting outside the regular course of practice and prescribing opioids without a legitimate medical need.”

“Today’s guilty verdict is a testament that no doctor should use his license to unlawfully distribute controlled substances and falsify medical records to conceal his crimes,” said FBI Special Agent in Charge Steven Merrill.  “The FBI will continue to work with our partners to hold those who abuse their positions of trust accountable, and to protect the public.”

During trial, the prosecution relied on a multitude of documentary evidence, including Puana’s false clinic files, Puana’s handwritten notebook, pharmacy records, text messages, and other business records, as well as the testimony of Puana’s closest friends, federal agents, a forensic accountant, a medical expert, and police officers, among others, to prove Puana intentionally distributed oxycodone and fentanyl outside the usual course of professional practice and without a legitimate medical purpose.

Chief District Judge Seabright of the District of Hawaii, who presided over the trial, set sentencing for Rudolph B. Puana on September 12, 2022, at 1:30 p.m.

U.S. Attorney Grossman praised prosecutors Michael Wheat, Joseph Orabona, Colin McDonald, Janaki Chopra, and Andrew Chiang, and FBI agents in Honolulu for their excellent work on this case.

DEFENDANTS                                 Case Number: CR 19-00015 JMS-WRP                            

Rudolph B. Puana                               Age: 50                       Waimea, Hawaii

SUMMARY OF CONVICTIONS

Count 1 – Conspiracy to Distribute or Dispense Oxycodone and Fentanyl – Title 21, U.S.C., Sections 841(a)(1) and 846

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

Counts 3-38 – Distributing or Dispensing Oxycodone – Title 21, U.S.C., Section 841(a)(1)

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

Count 39 – Distributing or Dispensing Fentanyl – Title 21 U.S.C., Section 841(a)(1)

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

Count 54 – Unlawful Possession of Firearm While Addicted to Controlled Substance – Title 18, U.S.C. Section 922(g)(3)

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

AGENCY

Federal Bureau of Investigation

Honolulu Division

Assistant U. S. Attorneys Valerie Chu (619) 546-6750 and Michelle L. Wasserman (619) 546-8431

NEWS RELEASE SUMMARY – April 13, 2022

SAN DIEGO – Elliot Adler, an attorney and founding partner of a boutique San Diego law firm, pleaded guilty in federal court today to conspiring with former Chabad of Poway Rabbi Yisroel Goldstein to commit tax fraud.

According to his plea agreement, Adler admitted that beginning at least as early as 2010 and continuing through October 2018, he participated in a so-called “90/10” tax scheme with Rabbi Goldstein. Specifically, Adler gave money to Rabbi Goldstein that purported to be a donation to Chabad of Poway. Goldstein then secretly funneled ninety percent of the funds back to Adler, keeping ten percent of the funds as his fee. None of the donated funds was actually given to the Chabad as a charitable donation.

Adler then falsely claimed that the fraudulent donations were tax-deductible on his tax returns, allowing him to reduce his personal income tax liability by approximately $500,000 (cumulatively) for tax years 2011 through 2017. 

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

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

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

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

Adler is the eleventh individual to plead guilty to crimes discovered in this investigation. Two additional individuals agreed to deferred prosecution agreements as a result of the investigation. 

“Elliot Adler conspired to commit a $500,000 tax fraud through phony religious donations,” said U.S. Attorney Randy S. Grossman. “Tax fraud is a serious crime that directly impacts our communities, and the U.S. Attorney’s Office is committed to working with the IRS, FBI and our other law enforcement partners to bring those responsible to justice.” Grossman thanked the prosecution team and agents for their hard work on this case.

“This defendant was part of an elaborate, years-long financial scheme to fraudulently claim charitable contributions in an effort to avoid paying taxes,” said FBI Special Agent in Charge Stacey Moy. “The FBI and our federal partners will continue to vigorously pursue those who abuse tax laws for their own financial gain - which also diminishes the public’s trust in charitable giving and hurts the organizations who rely on such donations.”  

“For years, Mr. Adler shirked his duty to pay his fair share and then he doubled-down in a failed attempt to cover up his million-dollar tax fraud with Rabbi Goldstein,” said Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation’s Los Angeles Field Office. “Tax revenue funds our critical infrastructure, our national defense and pays for social programs like health care, education and social security. A one percent increase or decrease in tax compliance equates to approximately $35 billion in tax revenue used to serve the American public. IRS Criminal Investigation is committed to rooting out tax schemes and working with our law enforcement partners to bring financial fraudsters to justice.”

Adler is next scheduled to appear at a sentencing hearing on July 11, 2022, before Judge Cynthia Ann Bashant.

SUMMARY OF CHARGES                        Case Number 22cr0821

Elliott Adler                                                   Age: 45                       San Diego, CA

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

Maximum Penalty: Five years in prison

PREVIOUSLY CHARGED DEFENDANTS AND SUMMARY OF CHARGES                     

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

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

Maximum Penalty: Five years in prison

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

Wire Fraud, in violation of Title 18, USC 1343

Maximum Penalty: Twenty years in prison

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

Maximum Penalty: Two years minimum consecutive term in prison

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

Maximum Penalty: Twenty years in prison

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

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

Maximum Penalty: Five years in prison

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

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

Maximum Penalty: Three years in prison

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

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

Maximum Penalty: Three years in prison

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

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

Maximum Penalty: Three years in prison

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

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

Maximum Penalty: Five years in prison

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

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

Maximum Penalty: Three years in prison

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

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

Maximum Penalty: Three years in prison

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

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

Maximum Penalty: Five years in prison

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

Deferred Prosecution Agreement

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

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

Deferred Prosecution Agreement

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

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Internal Revenue Service

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

NEWS RELEASE SUMMARY – April 6, 2022

SAN DIEGO – Antonio Hurtado pleaded guilty in federal court today to charges stemming from a May 2, 2021, maritime smuggling incident in which three people aboard the vessel he was piloting died.    

In a hearing before U.S. Magistrate Judge William V. Gallo, Hurtado admitted that on the evening of May 1, 2021, and into the following morning, he piloted a vessel from Mexico into the United States. Aboard the vessel were 32 individuals who had agreed to pay between $15,000 and $18,000 each to be brought into the United States illegally, including three unaccompanied minors.

Hurtado admitted in his plea agreement that during the journey, he repeatedly used controlled substances, to the point that he lost consciousness on at least one occasion, and the vessel drove in circles for more than an hour until the other people on board were able to wake him. At approximately 6:00 a.m., the vessel suffered engine failure, and the defendant was unable to restart the engine. The weather conditions that morning were rainy with large ocean swells, and the vessel began to drift toward land until it ran aground approximately 50 yards from shore near the Point Loma tidepools.

As the boat was struck by waves and began to list on its side, the defendant jumped into the water and made his way to shore, abandoning the vessel and its 32 occupants. The vessel quickly broke apart from the pounding of the surf, sending the individuals on board – almost all of whom had been hiding below deck and in the cabin at the defendant’s direction – into the cold and rough water. Personnel with the National Park Service, along with many civilians who were in the area, immediately began trying to help, and various agencies immediately responded to conduct a massive rescue operation. Unfortunately, three of the individuals – identified as Mexican citizens Maricela Hernandez-Sanchez, Victor Perez-Degollado, and Maria Eugenia Chavez-Segovia – died as a result of this incident.

After he was identified as the pilot of the vessel, Hurtado was taken to a local hospital for treatment and then transported to the Imperial Beach Border Patrol Station for processing. Hurtado admitted that while there, he assaulted a Border Patrol agent by striking the agent in the head with his knee while the agent was attempting to apply an ankle restraint.

The trial was scheduled to begin on May 3, 2021, one year and one day from the date of the incident.  Instead, the defendant pleaded guilty to three counts of Attempted Bringing in Illegal Aliens Resulting in Death (each of which carries a maximum sentence of life in prison); three counts of Attempted Bringing in Illegal Aliens for Financial Gain (which carry a five-year mandatory minimum sentence); and one count of Assault on a Federal Officer. 

“This was a horrific tragedy that never should have happened,” said U.S. Attorney Randy Grossman. “Because of the incomprehensible and stunning recklessness of the defendant on that terrible day, three people died and many others had to be rescued from rough seas. The defendant’s boat was packed with way too many people, and he then repeatedly used illicit drugs to the point of losing consciousness. When the boat capsized and passengers were desperately trying to survive, the defendant swam to safety, leaving them all behind. It was a shocking and callous series of events. If not for the heroism of stunned witnesses who swung into action, and that of first responders, others would have died. I have said it many times, and I will say it again: Never trust a smuggler. They care only about money. They care nothing for your safety. It’s not worth risking your life.” Grossman thanked the prosecution team and all the private citizens and members of local and federal agencies who participated in life-saving efforts on that terrible day, and also those who investigated the case to achieve justice.

“Callous disregard for migrant safety is a common trait among smugglers,” said Brandon Tucker, Director of Air and Marine Operations in San Diego. “All too often, these dangerous decisions have fatal consequences.  I’ve made it my mission to go after the smugglers that put migrant lives at risk.”

“That unscrupulous smugglers put lives in danger to support their criminal activity is reprehensible,” said Chad Plantz, special agent in charge for HSI San Diego. “These deaths could have been prevented were it not for this individual concerned more for his own greed rather than the safety of others. HSI remains committed to working with our law enforcement partners, and utilizing our unique investigative authorities, to bring to justice those responsible for horrible tragedies like this.”

Hurtado is scheduled to be sentenced on July 1, 2022, at 9 a.m. before U.S. District Judge Janis L. Sammartino.

DEFENDANT                                               Case Number 21-cr-01615                           

Antonio Hurtado                                             Age: 40                       San Diego, CA

SUMMARY OF CHARGES

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

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

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

Attempted Bringing in Illegal Aliens for Financial Gain and Aiding and Abetting

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

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

Assault on a Federal Officer

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

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

AGENCIES

Homeland Security Investigations

United States Border Patrol

Air and Marine Operations (CBP)

National Park Service

United States Coast Guard

San Diego Harbor Police Department

San Diego Fire-Rescue Department

San Diego Lifeguard Services

Assistant U. S. Attorneys Amanda Griffith (619) 546-8970 and Katherine McGrath (610) 546- 9054

NEWS RELEASE SUMMARY – April 4, 2022

SAN DIEGO – Michael Hamby Jr., a former Marine, was sentenced in federal court today to 340 months in prison and 20 years of supervised release for sexually molesting a 3-year-old child. The record reflects Hamby also advertised the child as available to others and expressed an intent to engage in sexual games with two other children, ages 4 and 8. 

Hamby, who pleaded guilty in May 2021, will be placed in a facility with a Sex Offender Management Program. He must also register as a sex offender.

“The lengthy sentence issued by the court reflects the horrific and depraved nature of Hamby’s crimes,” said U.S. Attorney Randy Grossman. “Following an NCIS investigation that spanned two countries, this prosecution ensures Hamby will face the consequences of his actions and the community will be protected from future harm.” Grossman thanked the prosecution team and federal agents who diligently pursued this egregious case.

“The world is a safer place for children now that Hamby has been sentenced to prison for his heinous crimes,” said Special Agent in Charge Michael Pierce of the NCIS Marine West Field Office. “As the federal law enforcement agency for the Department of the Navy, NCIS remains fully committed to protecting children from harm in communities where our DON personnel and their families live and work.”

According to the government’s sentencing memorandum, by all outward appearances, Hamby was a devoted husband and stepfather who served his country during two tours as a Marine, having reenlisted after completing his first tour in 2013 with an honorable discharge.  His guilty plea, however, reflects a much darker picture. He admitted that from October 15, 2016 through October 22, 2016, while Hamby was residing on Camp Pendleton, he engaged in email communications with his co-defendant, Elijah Alexander Vazquez, who is scheduled to be sentenced tomorrow at 10:30am, also before U.S. District Judge John Houston. In the emails, Hamby and Vazquez discussed their mutual sexual interest in children and arranged to meet in person to engage in sexual activity with a 3-year old child. The defendant expressed his ability to persuade, coerce and induce the 3-year old child to engage in sexual activity. During their email exchanges, Hamby and Vazquez made plans to meet in person on or about October 22, 2016.  They ultimately did meet as planned and engaged in various sexual acts with the child, including vaginal and anal penetration.

DEFENDANT                                               Case Number 19CR1904-JAH                                

Michael Hamby, Jr.                                        Age: 30                                  

SUMMARY OF CHARGES

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

Maximum penalty: A mandatory minimum 10 years in prison and a maximum of life in prison; a maximum $250,000 fine; and mandatory special assessments of $100 and $5,000.

AGENCY

Naval Criminal Investigative Service

Assistant U. S. Attorneys Amanda Griffith (619) 546-8970 and Jennifer McCollough (619) 546-8773    

NEWS RELEASE SUMMARY – April 4, 2022

SAN DIEGO – A California man was sentenced today to 162 months in prison followed by a lifetime of supervised release for attempting to meet an undercover agent he believed to be a minor to have sexual relations with her.   

Eduardo Alcala, 43, was arrested on August 2, 2021 and pleaded guilty to the charges on November 4, 2021.  According to information presented at the sentencing proceeding, Alcala sent a Facebook friend request to an undercover federal agent who told him that she was 13 years old.  Alcala and the undercover agent continued communicating through text messages.  Over the course of the text exchanges and several phone calls, Alcala appeared to groom her as the conversation escalated from talking about going to the beach, to “hooking it up,” to “working [her] out,” and eventually to having sex and masturbating over the phone before they planned to meet in person. Alcala made plans to meet at a park to engage in sexual conduct with the girl he believed to be 13 years old.  During this time, Alcala was a convicted and registered sex offender already on parole for one of multiple convictions involving children under the age of 18.  Notably, Alcala told the undercover agent that he was on parole and informed his parole officer he was going to meet his sick mother before going to the park, where he was arrested.

“This defendant was willing to victimize someone he believed to be a 13-year-old child. Fortunately, he instead connected with an undercover agent,” said U.S. Attorney Randy S. Grossman. “This successful prosecution demonstrates our unwavering commitment to protecting children. But the home is often our first line of defense. We urge all parents to be vigilant and aware of their children’s online activity.” Grossman commended the team of prosecutors and agents who worked diligently on this matter.

“This previously convicted sex offender communicated with someone he thought was a child for his own gratification, without regard to the physical, psychological and emotional damage he would have caused,” said Chad Plantz, Special Agent in Charge for HSI San Diego.  “Thank you to those men and women who work tirelessly to make our community and virtual playgrounds a safe place for all children.”

Homeland Security Investigations (HSI) Agents in Calexico, California, conducted the investigation.  The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

DEFENDANTS                                             Case Number 21cr2643-TWR                                      

Eduardo Alcala                                               Age: 43                                  

SUMMARY OF CHARGES

Attempted Enticement of a Minor – Title 18, U.S.C., Section 2242(b)

Maximum penalty: life in prison; $250,000 fine

AGENCY

Homeland Security Investigations

SAN DIEGO – Matthew P. Hernandez, former manager of a small, San Diego-based technology support firm, was sentenced in federal court today to 24 months in custody for embezzling more than $350,000. Hernandez was also ordered to pay $356,664.46 in restitution to the firm.

Hernandez pleaded guilty on August 24, 2021, to four felony counts of wire fraud. According to the plea agreement and the government’s sentencing memorandum, Hernandez was responsible for managing payroll, accounts payable, and disbursing bonuses to employees at the firm. Hernandez had unfettered access to the firm’s books and records and authority to sign checks on the firm’s behalf. In his managerial role, Hernandez stole from the firm hundreds of times over the course of seven years, from 2010 to January 2017.

Hernandez stole from the firm in four different ways. First, Hernandez issued checks and made online payments from the firm’s business checking account directly to his USAA account to pay off personal credit card debt. Second, Hernandez used the corporate credit card to make unauthorized, non-business-related purchases. For example, Hernandez used the corporate credit card to buy a $3,500 hot tub, a home gym, a knife set, a TAG Heuer racing watch, roundtrip flights between Los Angeles and the Dominican Republic, and concert tickets to Coachella. Third, Hernandez issued multiple paychecks to himself for a single pay period. And fourth, Hernandez issued checks from the firm’s business checking account directly into his personal bank account.

To conceal his fraudulent conduct, Hernandez falsified the firm’s books to make the fraudulent payments look legitimate. To do this, Hernandez changed the payee entries on the firm’s books from his personal accounts to companies with which the firm did business. When confronted about discrepancies on the firm’s books or questions about the USAA account, Hernandez lied to make it appear that he would balance the books and reimburse the firm for any unauthorized funds paid to him, and that the USAA account belonged to a company with which the firm did business. 

The fraudulent conduct was first discovered in January 2017 when Hernandez overdrew $10,000 from the firm’s business checking account. Upon inquiry, it was confirmed that the USAA account did not belong to a company with which the firm did business but rather it belonged to Hernandez. The firm extensively reviewed its books and records, identified Hernandez’s fraudulent purchases and transactions, and provided that information to federal law enforcement.  The firm’s efforts to identify Hernandez’s fraudulent conduct took years to complete and was instrumental in moving the investigation and prosecution forward.

“This defendant stole resources that he was hired to protect,” said U.S. Attorney Randy Grossman. “These thefts are devastating for small businesses. This is a significant sentence that hopefully alerts other would-be thieves that stealing from your employer carries significant consequences.” Grossman thanked the prosecution team, the FBI and U.S. Postal Service investigators for their work on this case.

“For years, Mr. Hernandez engaged in a scheme to defraud his employer - treating their business accounts as his own by writing checks and wiring money to himself, misusing his work credit card, and issuing duplicate paychecks,” said FBI Special Agent in Charge Stacey Moy. “The FBI is proud to work with our partners at the U.S. Postal Service to identify and hold accountable those who abuse their work placement and access for personal gain. I hope today’s sentence provides some closure for the victims.”

“The U.S. Postal Inspection Service plays a vital role in these types of fraud schemes that involve the embezzlement of funds.  Every day, U.S. Postal Inspectors protect our postal customers, businesses, and the public from such fraud scams that involve the U.S. mail,” said Carroll N. Harris III, Postal Inspector in Charge of the Los Angeles Division.      

DEFENDANTS                                Case Number 20-cr-3665-JLS         

Matthew P. Hernandez                       Age: 46                          Riverside, California

SUMMARY OF CHARGES

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

Maximum penalty: Twenty years in prison and a fine twice the $356,644.46 pecuniary loss resulting from the offense

AGENCIES

Federal Bureau of Investigation

United States Postal Service

SAN DIEGO – Ashleigh Lynn Chavez pleaded guilty in federal court today to Obstruction of Justice, admitting that she repeatedly forged doctor’s notes falsely indicating she had been diagnosed with cancer, and that she caused these notes to be submitted to the court through her attorneys.

According to publicly available court documents, Chavez, 37, pleaded guilty to a conspiracy charge in November 2019, admitting that she embezzled more than $160,000 from a former employer. She was permitted to remain out of custody pending sentencing. She faced a likely prison term.  On the eve of her sentencing, Chavez created a doctor’s note that falsely stated a biopsy had revealed “cancerous cells” in her uterus and forged the signature of her doctor on this letter.  Chavez then 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. 

On March 31, 2021, Chavez was sentenced to serve 12 months and 1 day in federal prison.  As a direct result of the forged doctor’s note she had caused her attorney to submit, she was permitted to remain out of custody for an additional three months so that she could 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. When contacted by government representatives, 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. 

“This defendant, already convicted of one fraud, worked for months to commit additional frauds on the federal court,” said U.S. Attorney Grossman. “While her dishonesty delayed payment of her debt to society, it will cost her still more time in prison.” Grossman thanked the prosecution team and the FBI for their excellent work on this case.

“The defendant went to great lengths to avoid reporting to prison for her prior fraud conviction by faking doctor’s notes claiming she had cancer – an insult to cancer patients everywhere,” said FBI Special Agent in Charge Stacey Moy. “May today’s guilty plea finally put an end to this odyssey to obstruct justice which, in the end, will only add additional time to her sentence.” 

Chavez faces up to 10 additional years in federal prison and is scheduled to be sentenced on June 27, 2022, by U.S. District Judge Anthony J. Battaglia.

DEFENDANT                                               Case No. 22-CR-0318-AJB                                                  

ASHLEIGH LYNN CHAVEZ                      Age 37            Chula Vista, CA

     aka “Ashleigh Lynn Coulson”

     aka “Ashleigh Chavez Coulson”

     aka “Carlos Garcia”

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

 

Assistant U. S. Attorney Jennifer E. McCollough (619) 546-8773

NEWS RELEASE SUMMARY – March 29, 2022

SAN DIEGO –Jonathan Mefford was sentenced in federal court today to 190 months in prison for selling fentanyl-laced pills that caused the death of a 20-year-old Chula Vista man, identified in court records as J.P., in October of 2018, and for distributing multi-pound level quantities of methamphetamine in Kansas.

Mefford previously admitted that he sold the pills to J.P. on October 29, 2018, and that he knew these pills contained fentanyl. Mefford additionally admitted that J.P.’s overdose and death was caused by the fentanyl-laced pills that J.P. purchased from Mefford. Finally, Mefford admitted that he transported multi-pound level quantities of methamphetamine from San Diego to Kansas.  Once in Kansas, Mefford distributed the methamphetamine to various individuals.

Detectives from the Chula Vista Narcotics Enforcement Team in concert with Special Agents from the Drug Enforcement Administration and Homeland Security led the investigation into J.P.’s death and quickly identified Mefford as the source of the fatal pills. According to the sentencing memorandum, Mefford offered counterfeit prescription pills for sale through social media platforms and sold up to 500 pills.  The sale of those pills not only led to the death of J.P., but another overdose where the victim fortunately survived.  Notably, Mefford continued selling counterfeit pills for months following both overdoses.  

“The epidemic of counterfeit fentanyl-laced pills continues to claim lives in our community,” said U.S. Attorney Randy Grossman. “To be clear: If you are a drug dealer selling pills, and those pills result in death, you will be held accountable for that death.” Grossman praised the prosecution team as well as the Drug Enforcement Administration’s Narcotics Task Force Team 10 and officials from the Chula Vista Narcotics Enforcement Team for their excellent work on this case.

“Today’s sentencing of Jonathan Mefford serves as a warning to anyone selling fentanyl-laced pills that there will be severe consequences if the pills you sell cause a death,” said DEA Special Agent in Charge Shelly S. Howe. “One pill can kill.  One pill can devastate a family. And one pill that causes a death can send you to prison for 15 years. DEA has resources available about the One Pill Can Kill campaign at www.dea.gov/onepill.”

“This 15-year sentence highlights the success of HSI’s collaborative efforts with our federal and local law enforcement partners in combating the opioid epidemic here and across the country,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “HSI is committed to holding those accountable who recklessly push this poison into our communities.”

“This case serves as a great example of why the Chula Vista Police Department works with our partners at the Drug Enforcement Administration and the U.S. Attorney’s Office, by bringing law enforcement agencies together, to hold drug dealers accountable and help keep dangerous drugs like fentanyl out of our community,” said Chula Vista Police Department Chief Roxana Kennedy. “This investigation sends a strong message to drug dealers operating in Chula Vista and provides some measure of justice for the victim and his family.”

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 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 J.P.’s death

DEFENDANTS                                             Case Number 20cr253-CAB                                       

Michael Mefford                                             Age: 24           Chula Vista, CA

SUMMARY OF CHARGES

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

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

Maximum penalty: Life in prison; $10 million fine

AGENCY

Homeland Security Investigations

Drug Enforcement Administration

Chula Vista Police Department

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

NEWS RELEASE SUMMARY – March 18, 2022

SAN DIEGO – A federal grand jury indictment was unsealed in San Diego against Guatemalan national Axel Bladimir Montejo Saenz, aka “Mosh,” aka “Kraken.” 

The indictment returned on November 1, 2018, charges Montejo Saenz with Conspiracy to Distribute Cocaine Intended for Unlawful Importation and Conspiracy to Distribute Cocaine on Board a Vessel.  Montejo Saenz remains a fugitive. 

Read the Indictment

The indictment alleges that the conspiracy continued up to and including November 2018 and involved the distribution of cocaine in the countries of Colombia, Ecuador, Guatemala, Costa Rica, El Salvador, Mexico and elsewhere. 

“Today marks another important step in disrupting the corridor of illicit drug trafficking from Central America into the United States,” said U.S. Attorney Randy S. Grossman.  “This complex, multi-agency investigation demonstrates the breadth of the Department’s mission to stop the flow of narcotics well before they reach our shores.”  U.S. Attorney Grossman thanked the prosecution team, Homeland Security Investigations and the Drug Enforcement Administration for their excellent work on this case.

“This high-level indictment highlights the success of HSI’s collaborative efforts with the government of Guatemala and all of our foreign and domestic law enforcement partners. This partnership has resulted in significant seizures of narcotics, firearms and U.S. Currency from international cartels,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “HSI is committed to bringing international drug trafficking cartel members to justice and to dismantling these criminal organizations.”

“DEA and our law enforcement partners are determined to bring members of transnational criminal organizations that inundate our country with cocaine to justice in the United States,” said DEA Special Agent in Charge Shelly S. Howe.  “We will continue to work with our foreign partners to stop the importation of illicit drugs.”

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

The public is reminded that an indictment 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                                              

Case Number 18cr4701-DMS         

Axel Bladimir Montejo Saenz                                    Age: 35            Huehuetenango, Guatemala

   aka “Mosh,” aka “Kraken,”

   aka “Gladiator,” aka “Baraja,”

   aka “Solin,” aka “Ron Zacapa,”

   aka “Captain Morgan,” aka “Corralejo”

SUMMARY OF CHARGES

International Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Section 959, 960, 963
Criminal Forfeiture – Title 21, U.S.C., Section 853

Maximum Penalty: Life in prison and $10 million fine

Conspiracy to Distribute Cocaine on Board a Vessel Subject to the Jurisdiction of the United States –
Title 46, U.S.C., Sections 70503, 70506(b)
Criminal Forfeiture – Title 46, U.S.C., Section 70507(a)

Maximum Penalty: Life in prison and $10 million fine

AGENCIES

Homeland Security Investigations (HSI)

Drug Enforcement Administration (DEA)

Customs and Border Protection (CBP)

U.S. Coast Guard

HSI Attaché Guatemala City, Guatemala

HSI Attaché Mexico City Mexico

Department of Justice’s Office of International Affairs

Department of Justice, Office of Enforcement Operations

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

Joint Task Force-Investigations (JTF-I)

Joint Interagency Task Force-South (JIATF-S)

U.S. Department of Treasury, Office of Foreign Asset Control (OFAC)

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

NEWS RELEASE SUMMARY – March 18, 2022

SAN DIEGO – A federal grand jury indictment was unsealed in San Diego against alleged Guatemalan drug kingpin Eugenio Dario Molina-Lopez, aka “Don Dario,” who is accused of being a leader of a transnational criminal organization known as Los Huistas. 

Los Huistas are primarily based in the Huehuetenango region of Northwest Guatemala that borders Mexico. This marks the latest indictment unsealed as part of Operation Guerrilla Unit, a multi-year investigation led by Homeland Security Investigations and the United States Attorney’s Office in San Diego that targets high-level Guatemalan drug traffickers and their suppliers.

The indictment returned on January 29, 2019, charges Molina-Lopez with Conspiracy to Distribute Cocaine Intended for Unlawful Importation and Conspiracy to Distribute Cocaine on Board a Vessel.  Molina-Lopez remains a fugitive. 

Read the Indictment      Wanted Poster - English       Wanted Poster - Espanol

The U.S. Department of State also announced today that it is offering a reward of up to $10 million for information leading to the arrest and/or conviction of Molina-Lopez.  This award is offered under the U.S. Department of State’s Narcotics Rewards Program (NRP).  More than 75 transnational criminals and major narcotics traffickers have been brought to justice under the NRP and the Transnational Organized Crime Rewards Program (TOCRP) since 1986.  The Department has paid more than $135 million in rewards to date. 

The State Department’s Bureau of International Narcotics and Law Enforcement Affairs manages the NRP in close coordination with Homeland Security Investigations, the Federal Bureau of Investigation, the Drug Enforcement Administration, and other U.S. government agencies. 

ALL IDENTITIES ARE KEPT STRICTLY CONFIDENTIAL.  Government officials and employees are not eligible for rewards

Operation Guerrilla Unit targets high-level cocaine traffickers operating in northwest Guatemala and their suppliers.  This investigation has offered one of the most comprehensive views to date of the inner workings of cocaine trafficking in Guatemala. High-level cocaine traffickers were targeted in a massive probe involving multiple countries, multiple law enforcement agencies around the United States, and a number of federal districts. 

“This extraordinary case is one of this district’s most significant, comprehensive and large-scale drug trafficking prosecutions,” said U.S. Attorney Randy S. Grossman.  “We are working tirelessly to dismantle cartels by taking down the leaders, one by one.” Grossman thanked the prosecution team, Homeland Security Investigations for spearheading this multi-year investigation, and the many law enforcement agencies that have worked so diligently on this case.

“HSI remains committed to combating the flow of dangerous drugs into the U.S. This includes disrupting and dismantling transnational criminal organizations and their supply networks beyond our borders. The indictment of Molina, the leader of Los Huistas, demonstrates HSI's efforts to target these criminal organizations at their highest levels,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “The reward proposed by the Department of State for Molina’s capture is a significant step forward in the investigation and reflects HSI's holistic approach to countering transnational criminal organizations by collaborating not only with law enforcement partners, but also with our foreign policy and regulatory agencies.”

“The fight against drug cartels in the Eastern Pacific Ocean and the Caribbean Sea requires unity of effort from operational detection, monitoring, and interdiction, to criminal prosecutions by international partners and U.S. Attorneys’ Offices,” said Rear Admiral Brian Penoyer, the Eleventh Coast Guard District commander. “These charges showcase the threat posed by dangerous cartels, gangs and criminal groups that make up extensive organized crime networks.”

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

DEFENDANT                                              

Case Number 19cr0327-DMS         

Eugenio Dario Molina-Lopez                                                 Age: 57            Huehuetenango, Guatemala

   aka “Don Dario,” aka “Molis”

SUMMARY OF CHARGES

International Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Section 959, 960, 963
Criminal Forfeiture – Title 21, U.S.C., Section 853

Conspiracy to Distribute Cocaine on Board a Vessel – Title 46, U.S.C., Section 70503(b), 70506

Maximum Penalty: Life in prison and $10 million fine

AGENCIES

Homeland Security Investigations (HSI)

Customs and Border Protection (CBP)

Federal Bureau of Investigation (FBI)

U.S. Coast Guard

HSI Attaché Guatemala City, Guatemala

HSI Attaché Mexico City Mexico

Department of Justice’s Office of International Affairs

Department of Justice, Office of Enforcement Operations

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

Department of Justice's Narcotic and Dangerous Drug Section (NDDS)

Joint Interagency Task Force-South (JIATF-S)

U.S. Department of Treasury, Office of Foreign Assets Control (OFAC)

U.S. Department of State

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

Assistant U.S. Attorney Carl F. Brooker, IV (619) 546-7994

NEWS RELEASE SUMMARY – March 17, 2022

SAN DIEGO ­– David John Nava of La Jolla was sentenced in federal court today to 12 months for his role in multiple felonies related to the operation of his financial firm, Surf Financial Group, LLC, including conspiring to defraud shareholders of publicly traded companies, transmitting millions of dollars through an unlicensed money transmitting business, and falsifying multiple years of federal tax returns. He was also ordered to pay $3,716,888.27 in restitution.  

Nava pleaded guilty on October 7, 2020, to one count of conspiracy to commit securities fraud, one count of operating an unlicensed money transmitting business, and one count of tax fraud.  Pursuant to his plea agreement, Nava agreed to forfeit more than $3.1 million for his crimes.

According to the plea agreement and sentencing papers, Nava managed Surf Financial Group, LLC despite federal securities regulators permanently banning and censuring him in 1994 from participating in the industry. Nava admitted that he and other co-conspirators, including a licensed attorney, converted the debt of various publicly traded companies under materially false and fraudulent pretenses into unrestricted stock and then sold the stock for profit. Nava further admitted that he and his co-conspirators carried out their fraudulent scheme by entering into agreements where Nava sold shares of various entities’ stock on public exchanges after fraudulently claiming an exemption from the U.S. Securities and Exchange Commission’s (SEC) registration requirements for selling securities in the public marketplace.

To conceal his involvement in the securities fraud scheme, Nava admitted using various nominees to ensure that, as Nava described it, he was a “ghost” in the transactions.  Brokerage firms relied on the purported truth and accuracy of the attorney opinion letters in evaluating whether to clear the sale of shares of the restricted stocks on public markets. After the stocks were cleared for sale as a result of the false attorney opinion letters, Nava and his co-conspirators sold millions of shares of these stocks to the investing public. 

Nava further admitted that, from approximately 2017 to 2018, he operated an unlicensed money transmitting business as a means to transmit financial proceeds from foreign locations, including Hong Kong and the Bahamas, as a way to disguise the source, origin and control of the proceeds.

As stated in his plea agreement, in 2017 Nava entered into a business partnership with at least one person who resided in Mexico and delivered dairy products for a living. To conceal Nava’s control over the money transmitting business, Nava directed the Mexican resident to open a bank account at a financial institution in San Diego, and to transmit millions of dollars in funds as directed by Nava. Nava failed to register his money transmitting business with the U.S. Treasury Department’s Financial Crimes Enforcement Network, or FinCEN, as required under federal law. 

“This defendant stepped outside the boundaries of legal business practices and used his business acumen and connections for a criminal purpose,” said U.S. Attorney Randy Grossman. “He concocted a complex, international scheme to deceive shareholders, launder proceeds of the fraud through Mexico, and hide profits from the IRS. The sentence imposed by the court sends a message that serious crimes result in serious consequences.” Grossman thanked the prosecution team and HSI and IRS agents for their excellent work on this case.

“CEOs are not above the law,” said Chad Plantz, Special Agent in Charge of HSI, San Diego. “Today’s sentencing sends a message to white collar criminals that they will be held accountable.  HSI San Diego and Costa Pacifica Money Laundering Task Force will continue to aggressively investigate and work to prosecute securities fraud and other financial crimes.”

“Today’s sentencing holds David Nava accountable for his crimes against the American tax system he cheated and the innocent Americans he victimized,” said IRS Criminal Investigation Special Agent in Charge Ryan L. Korner.  “Schemes like this cannot and will not go unnoticed.  IRS Criminal Investigation is committed to working with our partners to investigate fraudulent schemes and trace the proceeds.  We will hold fraudsters accountable and they will face the consequences, including serving time in federal prison.”

DEFENDANTS                                             Case Number: 20-cr-03085-DMS                                       

David John Nava                                            La Jolla, CA                Age: 63

SUMMARY OF CHARGES

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

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

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

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

Tax Fraud – Title 26 U.S.C. Section 7206(1)

Maximum Penalty: Three years in prison, and $100,000 fine

AGENCIES

Homeland Security Investigations - Costa Pacifico Money Laundering Task Force

IRS Criminal Investigation – Financial Investigations and Border Crimes Task Force

Assistant U. S. Attorneys Michelle L. Wasserman (619) 546-8431 and Valerie Chu (619) 546-6750

NEWS RELEASE SUMMARY – March 11, 2022

SAN DIEGO – Mendel Goldstein, brother of former Chabad of Poway Rabbi Yisroel Goldstein, was sentenced in federal court today to 8 months custody and a $5,500 fine for his participation in a years-long scheme with his brother to evade taxes.  He was also ordered to pay restitution totaling $164,475.82. While imposing the sentence, District Court Judge Cynthia Bashant stated, “It’s important to send a message . . . people need to know, this is what happens when you commit tax fraud.” 

According to his plea agreement, Mendel Goldstein concealed the entirety of his income for at least six years by funneling the income from his successful videography business through Chabad of Poway bank accounts that were controlled by his brother, Rabbi Goldstein.  In return, Rabbi Goldstein took a ten percent cut of Mendel Goldstein’s income.

Mendel Goldstein was able to access his funds by writing checks to himself from the Chabad of Poway bank account that concealed the true recipient of the money, instead addressing checks to fictitious people including “Mr. Green,” “Mr. Gold,” or “Mr. Fish,” or simply making the checks out to “CASH.”  Between April 2012 and August 2018, Mendel Goldstein concealed over $700,000 in income from the IRS, evading over $150,000 in taxes. 

Rabbi Goldstein alerted Mendel Goldstein to the investigation around December 2018 and encouraged Mendel Goldstein to conceal his tax evasion by filing delinquent tax returns.   

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

“Our community should not tolerate tax fraud, and offenders will continue to be prosecuted,” said U.S. Attorney Randy Grossman. Grossman thanked the prosecution team and FBI and IRS agents for their excellent work on this case.

“For years, Mendel Goldstein worked with his brother, Yisroel - then the director of the Chabad of Poway - to orchestrate a financial scheme to hide more than $700,000 of his own income from being taxed,” said FBI Special Agent in Charge Suzanne Turner. “The FBI has no tolerance for those who abuse the tax-exempt status of religious organizations for their own financial gain. We are proud to work alongside our federal partners at IRS - Criminal Investigation to uncover various forms of financial fraud and I would like to thank them for their ongoing partnership in this case.”

“Instead of paying his fair share, Mr. Mendel Goldstein used his relationship and the exploitation of a religious organization’s special non-profit status to divert his income, conceal his earnings and evade paying his taxes,” said Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation. “Today’s sentencing and this investigation demonstrate our commitment to hold accountable those who shirk their tax obligations by corrupting our nation’s tax laws for their own  personal gain.”

SUMMARY OF CHARGES                        Case Number 20CR-2772-BAS

Mendel Goldstein                                                      Age:64             Brooklyn NY

Conspiracy to Defraud the United States, in violation of Title 18, USC 371

Maximum Penalty: Five years in prison

PREVIOUSLY CHARGED DEFENDANTS AND SUMMARY OF CHARGES                     

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

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

Maximum Penalty: Five years in prison

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

Wire Fraud, in violation of Title 18, USC 1343

Maximum Penalty: Twenty years in prison

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

Maximum Penalty: Two years minimum consecutive term in prison

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

Maximum Penalty: Twenty years in prison

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

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

Maximum Penalty: Five years in prison

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

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

Maximum Penalty: Three years in prison

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

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

Maximum Penalty: Three years in prison

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

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

Maximum Penalty: Three years in prison

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

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

Maximum Penalty: Three years in prison

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

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

Maximum Penalty: Three years in prison

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

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

Maximum Penalty: Five years in prison

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

Deferred Prosecution Agreement

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

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

Deferred Prosecution Agreement

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

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Internal Revenue Service

Two members of a network that operated and facilitated a large-scale “grandparent scam,” pleaded guilty to racketeering conspiracy. Timothy Ingram, aka Bleezy, 29, of North Hollywood, California pleaded guilty on March 2, and Jack Owuor, 25, of Paramount, California pleaded guilty on March 9.

According to court documents, Ingram and Owuor 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 pursue and prosecute individuals who systematically target elderly 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 to advance the department’s efforts against organized elder fraud, and to the San Diego County District Attorney’s Office.”

“These defendants exploited the sacred bond between grandparent and grandchild and left many victims financially and emotionally traumatized,” said U.S. Attorney Randy Grossman for the Southern District of California. “We will vigorously investigate and bring to justice those who prey on the elderly.”

“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.”   

Ingram and Owuor pleaded guilty to conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act. Ingram is scheduled to be sentenced on May 27. Owuor is scheduled to be sentenced on June 3. They each face 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. Four 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 Oleksandra “Sasha” Johnson (619) 546-9769

NEWS RELEASE SUMMARY – March 9, 2022

SAN DIEGO – Two defendants charged in a nationwide “grandparent scam” have pleaded guilty to conspiracy charges under the Racketeer Influenced and Corrupt Organizations (RICO) Act.  

Jack Owuor, 25, of Paramount, California pleaded guilty in federal court today. Timothy Ingram, 29, of North Hollywood, California, pleaded guilty on March 2, 2022.

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 San Diego County residents lost more than $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, according to court documents. 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.

Ingram admitted in his plea agreement that he organized the criminal activity of at least five other participants, including codefendants Anajah Gifford and Jack Owuor.  Ingram admitted that he recruited mules to receive transfers of money from victims, and to pick up cash from victims in California and elsewhere.  As part of the guilty plea, Ingram agreed to forfeit $124,700 in proceeds from the offense.  Ingram will also be subject to an order of restitution to the victims of the offense in the amount of at least $1,932,507.93.

Owuor admitted in his plea agreement that he conducted cash pick-ups from victims under Ingram’s direction, and later recruited women to pick up cash.  In their phone messages, Ingram and Owuor discussed using female mules for cash pick ups to make “it more smooth.”  As part of his guilty plea, Owuor agreed to forfeit $4,300 in proceeds he personally received from the offense, and pay at least $434,600 to the victims in restitution.

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

“These defendants exploited the sacred bond between grandparent and grandchild and left many victims financially and emotionally traumatized,” said U.S. Attorney Randy Grossman. “We will vigorously investigate and bring to justice those who prey on the elderly.” Grossman thanked the prosecution team, the Department of Justice’s Consumer Protection Branch and members of the San Diego Elder Justice Task Force for their excellent work on this case.

“The Department of Justice’s Consumer Protection Branch will pursue and prosecute individuals who systematically target elderly 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 to advance the department’s efforts against organized elder fraud, and to the San Diego County District Attorney’s Office.”

“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 FBI Special Agent in Charge Suzanne Turner. “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.”       

As of today, four of the eight defendants charged in the case are pending trial. Two defendants are fugitives and remain at large.

DEFENDANTS                                             Case Number 21cr2216-CAB                                       

Tracy Adrine Knowles                                   30        Orlando, Florida

Fugitive                                                        

Adonis Alexis Butler Wong                           30        Northbay Village, Florida

Fugitive

Timothy Ingram, AKA Bleezy                       29        North Hollywood, California

In custody

Sentencing set for May 27, 2022                                                                                              

Anajah Gifford                                                23        North Hollywood, California

In custody 

Lyda Harris                                                     74        Laveen, Arizona

Released on bond

Joaquin Lopez                                                 46        Hollywood, Florida

Released on bond

Jack Owuor                                                     25        Paramount, California                                           

Released on bond. 

Sentencing set for June 3, 2022

Tracy Glinton                                                 35        Orlando, Florida

Released on bond

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 Seth Askins (619) 546-6692 and Alicia Williams (619) 546-8917

NEWS RELEASE SUMMARY – March 9, 2022

SAN DIEGO – U.S. Customs and Border Protection Officer Marcos Valenzuela was convicted by a federal jury today of using unreasonable force on an individual who had applied for admission to the United States from Mexico.

The jury trial began Monday. The jury deliberated for an hour and a half before finding Valenzuela guilty of two charges, Deprivation of Rights under Color of Law and Falsification of Records in a Federal Investigation.

According to evidence presented at trial, which included surveillance video and witness testimony, Valenzuela was assigned to primary vehicle inspection in lane 5 at the Calexico West Port of Entry on August 16, 2019.  There was an incident in the pre-primary area of his line between the victim, identified only as “J.L.” in court documents, and the driver of a motorcycle, after the motorcycle cut in front of J.L.’s vehicle while waiting in line.

 Valenzuela responded to the pre-primary area where J.L. had gotten out of his vehicle. Valenzuela instructed J.L. to get back into his vehicle, and when J.L. did not immediately comply, Valenzuela told him to get back into his vehicle or Valenzuela would “throw him to the ground.”  After J.L. complied, Valenzuela returned to the primary booth. Eventually, the motorcyclist applied for entry into the United States at the primary booth, and Valenzuela told him that he was “going to f**k [J.L.] up right now.”

Immediately thereafter, J.L. drove up to the primary inspection booth with his identification card extended in his hand from the window of the vehicle in an effort to expedite the admissibility inspection.  Rather than conducting that inspection, Valenzuela immediately began to rehash the incident in pre-primary, telling J.L., “All right, bro. Check it out.  I already called it upstairs…”  J.L. attempted to explain that the motorcyclist had cut line in front of him, but Valenzuela told him to be quiet, that Valenzuela was talking, and that J.L. would be removed from the vehicle if he said another word. 

When J.L. asked to speak with Valenzuela’s supervisor, Valenzuela told J.L. to turn off and exit the vehicle.  While J.L. was turning off the vehicle and removing his seat belt, Valenzuela reached through the driver’s window, unlocked and opened the door, and grabbed J.L.’s left wrist.  He pulled J.L. out of the vehicle, and then in one motion that took about five seconds, he shoved J.L. into the wedge of the door, wrapped his right arm around J.L.’s neck and upper chest, threw J.L. to the ground with a backwards motion, and landed on top of J.L. who was now face down on the ground and sustained minor injuries to his forehead and forearm.

Once J.L. had been placed in handcuffs, Valenzuela escorted him to the vehicle secondary office.  While in the security office, Valenzuela made multiple misrepresentations to other Customs and Border Protection officers about his interaction with J.L. in an effort to portray J.L. as the aggressor and justify his use of force against J.L. Valenzuela also wrote an incident report later that day that included numerous false statements alleging aggressive verbal and physical conduct by J.L. and claiming that J.L. resisted arrest.

At trial, Valenzuela testified in his own defense, maintaining that J.L. resisted arrest by “pushing off” against him once he had been removed from the vehicle and attempting to explain away the false statements in his reports by claiming that the statements had actually been made by J.L. during their interaction in the pre-primary area.

The jury rejected that testimony and found that Valenzuela deprived J.L. of his Fourth Amendment Constitutional right to be free from unreasonable search and seizure, which includes the right to be free from the use of excessive force.  The jury also found that Valenzuela falsified the incident report with the intent to impede, obstruct, or influence a federal investigation, specifically the investigation of his excessive use of force against J.L. 

“The jury has found that Marcos Valenzuela used excessive force and deprived a United States citizen of his right under the Fourth Amendment to be free from unreasonable search and seizure,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office takes every allegation of excessive force by law enforcement officers very seriously, and where those allegations are supported by the evidence, we will take the appropriate action to ensure that the transgressors are held accountable.  Along with our law enforcement agency partners, we are dedicated to protecting the constitutional rights of all members of our community.”

Grossman thanked Assistant U.S. Attorneys Seth Askins and Alicia Williams and Paralegal Specialist Lina Douglas who prosecuted the case, along with former Assistant U.S. Attorney Christopher Tenorio and Special Agents with both the Federal Bureau of Investigation and Customs and Border Protection’s Office of Professional Responsibility for their excellent work on this case.

“Today's guilty verdict demonstrates the FBI’s commitment to holding everyone accountable for their criminal actions, regardless of the position they hold,” said FBI Special Agent in Charge Suzanne Turner. “I want to specifically thank Customs and Border Protection's Office of Professional Responsibility for their partnership and commitment in seeing this case to the end.”

“CBP employees and officers take an Oath of Office, a solemn pledge that conveys great responsibility and one that should be carried out at all times with the utmost professionalism,” said Elizabeth Cervantes, Special Agent in Charge of the CBP Office of Professional Responsibility in San Diego. “CBP employees who disregard that oath and instead choose to violate the trust of the citizens they swore to protect will be held accountable.  CBP will continue to work with our partners at other agencies to seek out and investigate any instance of abuse. This layered approach and collaboration among federal agencies is critical to the mission of professional integrity. Although the percentage of prosecutions for abuse is very small, no incident is tolerated.”

“CBP stresses honor and integrity in every aspect of our mission, and the overwhelming majority of CBP employees and officers perform their duties with honor and distinction, working tirelessly every day to keep our country safe,” said Ryan Koseor, Port Director for the Calexico area ports of entry for U.S. Customs and Border Protection. “We do not tolerate abuse within our ranks, and condemn actions that would tarnish the reputation of our agency. I appreciate the work of our partners to investigate this officer for using excessive force and to bring this case to trial. As public servants, we are rightly held to a higher standard of conduct and are subject to the same laws and rules that apply to private citizens.”

Valenzuela is scheduled to be sentenced on July 8 before U.S. District Chief Judge Dana M. Sabraw.

DEFENDANT                                               Case Number 21cr1056-JLS                            

Marcos Valenzuela                                         Age: 30                                   El Centro, CA

SUMMARY OF CHARGES

Deprivation of Rights under Color of Law – Title 18, U.S.C., Section 242

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

Falsification of Records in a Federal Investigation – Title 18, U.S.C., Section 1519

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

AGENCIES

U.S. Customs and Border Protection, Office of Professional Responsibility

Federal Bureau of Investigation

Assistant U. S. Attorneys Larry Casper (619) 546-6734 and Shauna Prewitt (619) 546-7937

NEWS RELEASE SUMMARY – March 7, 2022

SAN DIEGO – Perry Edward Davis of San Diego was sentenced in federal court today to 20 years in prison for distributing the fentanyl that resulted in the death of Joshua Chambers, a 25-year-old husband and father of two young children from El Cajon.

Davis was convicted by a federal jury on October 7, 2021, after a trial before U.S. District Judge Larry A. Burns. 

Chambers was one of three people who collapsed on December 21, 2019, at approximately 2:30 a.m., outside the QuarterDeck Cocktail Bar in El Cajon. Paramedics and first responders quickly identified the mass-collapse as an opioid overdose and administered Narcan – a medication designed to reverse the effects of an opioid overdose – to all three subjects. Two were revived and recovered, but Chambers never regained consciousness. He was declared deceased at approximately 3:39 a.m. The U.S. Attorney’s Office is releasing excerpts from a security video which was presented as evidence at Davis’ trial showing the victims collapsing.

VIEW VIDEOS

The investigation revealed that the three individuals had ingested what they believed was cocaine by snorting a “line” in Chambers’ vehicle shortly before each collapsed. Laboratory testing of a baggie found in the vehicle showed that it contained cocaine mixed with fentanyl; the evidence at trial showed that mixture was supplied by Davis shortly before it was used. 

During sentencing, Judge Burns stated that the “effect fentanyl has is way worse, way more deadly, than other highly addictive and dangerous drugs that we see.”  When addressing Davis, Judge Burns noted that, based on the trial evidence, “[i]t was clear to me that you were the purveyor” and that, “[b]ut for the intervention of first responders, we’d have three deaths rather than the one here.”

At today’s hearing, Assistant U.S. Attorney Larry Casper described the case as “truly tragic” and noted that neither Chambers nor the others knew the cocaine they were using was, in fact, laced with fentanyl. Casper explained that the case “should serve, in part, as a clarion call about the unsafe nature of illicit street drugs” and that “no controls on illicit drug suppliers or dealers can regulate what is actually being supplied.”

In a statement submitted to the court, Chambers’ wife said: “My husband was loved by so many. As a mother I suffer daily having to see my children miss their father. They are so young and they don't understand fully why their daddy had to go to heaven. It is so heartbreaking to see my children hurt and not be able to do anything to take it away and make it better. The biggest tragedy from all of this is that 2 innocent children have to grow up without a dad.”

Chambers’ mother noted that her son’s death “has left me numb for the rest of my life.”

Chambers’ wife and mother also expressed the hope that keeping Davis off the streets would save other lives.

“Today, a drug dealer has been held to account for the tragic death of Joshua Chambers,” said U.S. Attorney Randy Grossman. “A son, husband and father has left this world way too soon, and a devastated family will forever struggle with this senseless loss. The images of these victims collapsing is a very painful and unforgettable reminder of fentanyl’s powerful impact. Our efforts to prosecute those responsible for needless fentanyl-related deaths continues unabated.” Grossman thanked the prosecution team as well as the El Cajon Police Department, the Drug Enforcement Administration and agents from Narcotics Task Force Team 10, a multi-agency team that was created in July 2018 to address drug overdose deaths in San Diego, for their efforts on this case. 

“This case is a dire reminder to the public that there are no safe recreational drugs.  The DEA is now seeing fentanyl in a variety of recreational drugs in San Diego, to include stimulants,” said DEA Special Agent in Charge Shelly S. Howe.  “In this case, the individuals thought they were using cocaine and it cost one of them - a young father of two - his life.  If you are using drugs, please seek help with your addiction.  It could save your life.”  

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

DEFENDANT                       Case Number 20-CR-2500-LAB                                                    

Perry Edward Davis               Age: 46                       San Diego, California

SUMMARY OF CHARGE TO WHICH GUILTY VERDICT RETURNED

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

Maximum Penalty – Mandatory Minimum of 20 years and a maximum of life

INVESTIGATING AGENCIES

El Cajon Police Department

Narcotics Task Force Team 10

Assistant U. S. Attorneys Michael A. Deshong and Alicia Williams (619) 546-9290

NEWS RELEASE SUMMARY—March 4, 2022

SAN DIEGO - Darris Cotton of Vista pleaded guilty in federal court today to a fraud charge, admitting that he submitted false applications for unemployment benefits to California’s Employment Development Department.

As admitted in the plea agreement entered today before U.S. District Judge Todd W. Robinson, Cotton used third parties’ names, dates of birth, and social security numbers to submit false applications for benefits. Cotton listed an address in Vista, California on at least sixteen different applications. After California’s Employment Development Department (EDD) mailed debit cards containing the benefits to Cotton’s address, he took the cards to various locations to purchase money orders for the purpose of extracting the funds. Cotton admitted to fraudulently obtaining at least $312,000 in benefits. As part of his plea agreement, Cotton agreed to forfeit $97,400 in money orders and $15,139 in currency that was seized from him.

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

As set forth in his plea agreement, Cotton began submitting fraudulent applications for benefits just a few months after Congress passed the CARES Act and expanded these benefits. Cotton also admitted that he submitted fraudulent applications for benefits to EDD in addition to the sixteen specified in the plea agreement, and submitted fraudulent applications for benefits in other states such as Pennsylvania, Maryland, and Arizona. Cotton used the benefits he fraudulently obtained to purchase luxury items such as Gucci-brand backpacks.

Agents from United States Secret Service, Homeland Security Investigation, and Department of Labor Office of Inspector General and detectives from the San Diego Police Department conducted the investigation into dozens of fraudulent applications that were submitted in July and August of 2020. During the investigation, law enforcement seized approximately $97,000 in U.S. Postal and MoneyGram money orders and $15,000 in U.S. currency from Cotton.

“While so many deserving people were suffering from pandemic-related economic challenges, this defendant used a global pandemic to cash in,” said U.S. Attorney Randy Grossman. “These benefits are intended for those who truly need it, not for greedy people who exploit the system.” Grossman thanked the prosecution team and investigative agencies for their excellent work on this case.

“HSI special agents and our law enforcement partners have worked tirelessly to bring to justice criminal networks that are exploiting the global pandemic for personal financial gain,” said Special Agent in Charge Chad Plantz of HSI San Diego. “This guilty plea assures this individual can no longer illegally profit from resources dedicated toward those needing financial assistance due to the COVID-19 pandemic.” 

“The Secret Service remains committed to pursuing those who seek to wrongfully benefit from CARES Act fraud,” said San Diego Acting Special Agent in Charge Timothy Scott. “The hard work from the skilled agents and investigators who worked this case, and many others like it, is making a difference not just here in San Diego, but around the country.”

Cotton is scheduled to be sentenced on May 27.

DEFENDANT                                               Case Number 21cr1108-TWR                          

Darris Cotton                                              Age: 30               Vista, CA

SUMMARY OF CHARGES

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

Criminal Forfeiture—Title 18, U.S.C., Section 981

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

AGENCY

United States Secret Service

Homeland Security Investigations

Department of Labor Office of Inspector General (OIG)

San Diego Police Department

Carlsbad Police Department

Assistant U.S. Attorneys Kareem A. Salem (619) 546-8904 and John Parmley (619) 546-7957

NEWS RELEASE SUMMARY – March 4, 2022

SAN DIEGO – Joe Sery, former owner and chief executive officer of Tungsten Heavy Powder & Parts, and his brother, Dror Sery, are charged in a federal grand jury indictment unsealed today with violations of federal export laws pursuant to the International Traffic in Arms Regulations (ITAR).

Tungsten Heavy Powder & Parts, or THPP, is a San Diego-based company that provides tungsten fragments, sub-assemblies, and other weapon grade components for United States military contracts.

According to the indictment, between January 1, 2016, and December 12, 2019, Joe Sery entered into contracts with various aerospace and defense companies on behalf of THPP. Joe Sery then obtained  ITAR- controlled technical data and drawings from these companies to allow THPP to fulfill the contracted order. Some of THPP’s projects included the construction of an Advanced Rapid Response Weapon, a 155-millimeter Bi-Modal Warhead, a R9E Warhead, and an 81-millimeter Cowling Cone. These drawings contained information, which is required for the design, development, production, manufacture, assembly, operation, repair, testing, maintenance, or modification of defense articles.

Despite being educated and trained regarding the requirements of ITAR, Joe Sery and his brother Dror Sery – a foreign national and dual citizen of Israel and South Africa – knowingly and willfully exported from the United States to the People’s Republic of China, the Republic of India and elsewhere overseas, defense articles covered by the United States Munitions List without first obtaining permission from the United States Department of State’s Directorate of Defense Trade Controls.

The indictment further alleges that Joe Sery and Dror Sery accomplished this, in part, by creating a non-THPP email address to surreptitiously receive ITAR-controlled documents. Additionally, shortly after Dror created the outside email address Joe Sery provided Dror Sery with administrative level access of THPP’s “ShareFile system,” which contained ITAR-controlled data. Subsequently, on several occasions, Joe Sery and Dror Sery exported technical drawings from the United States via email messages to each other, including while Dror was located in India and the People’s Republic of China.

Joe Sery is expected to be arraigned in federal court on Monday; an arrest warrant has been issued for fugitive Dror Sery. He is believed to be residing in Israel.

THPP is cooperating with the investigation.

“The indictment alleges that these brothers disregarded important regulations designed to keep sensitive information from falling into the hands of those who would harm America,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office will work together with our law enforcement partners to protect military technology.” Grossman thanked the prosecution team, HSI and DCIS for their excellent work on this case.

“This arrest highlights the outstanding partnerships between HSI and the Department of Defense’s investigative agencies who work tirelessly every day to ensure our protected military technology and weaponry are not used by foreign actors against our warfighters and allies on the battlefield,” said HSI San Diego Special Agent in Charge Chad Plantz. “This arrest sends a clear message that those entrusted with our country’s military technology and weaponry will be held responsible for its safeguarding.”  

“Mr. Sery is accused of compromising sensitive defense technology, and today’s arrest is an important step toward protecting our country’s information,” said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office.  “DCIS will always take aggressive action with our law enforcement partners to deter and investigate any such threats to our national defense.”

DEFENDANTS                     Case Number 21CR2898-GPC

Joe Sery                                  Age: 77                       San Diego, CA

Dror Sery                                Age: 70                       Israel/Unknown

SUMMARY OF CHARGES

Conspiracy to Commit Offenses Against the United States- Title 18 U.S.C., Sections 371,554; Title 22 U.S.C., 2778(b)(2), (c); Title 22 CFR Sections, 120, 121.1 , 123.1, 127.l(a)(4)

Exportation of Defense Articles Without a License and Aiding and Abetting To Do Same

Title 22 U.S.C., Sections 2778(b)(2), (c); Title 22 CFR 120, 121.1, 123, 127; Title 18 U.S.C., 2

Criminal Forfeiture – Title 18 U.S.C., Sections 98l(a)(l)(c); Title 28 Section 246l(c); Title 22 U.S.C., 401

Maximum penalty: Twenty years in prison and $1 million 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

 

 

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

NEWS RELEASE SUMMARY – March 3, 2022

SAN DIEGO – A man who committed three armed robberies, including a robbery in which he fired his gun at a clerk, was sentenced in federal court today to 248 months in prison.

Devon Dwayne Brooks pleaded guilty in July to two counts of Hobbs Act Robbery, one count of Attempted Hobbs Act Robbery, and two counts of Brandishing a Firearm in Furtherance of a Crime of Violence.

According to his plea agreement, Brooks admitted that he robbed the Alpha and Omega Jewelry store in National City on March 26, 2019; the Valerio’s Bakeshop in National City on December 30, 2019; and the Winchell’s Donut House in National City on January 2, 2020. A gun was used in all three robberies. During the Winchell’s Donut House robbery, Brooks used a revolver to demand money from the cash register. When the clerk resisted, a struggle ensued. Brooks took a step back, aimed his revolver, and fired one shot, ultimately missing the clerk. Brooks then punched and pistol-whipped the clerk before fleeing empty handed.

“This defendant terrorized and injured store clerks and put their lives at risk,” said U.S. Attorney Randy Grossman. “He changed their lives forever. This is a prime example of why the Department of Justice prioritizes violent crime. The U.S. Attorney’s Office and our law enforcement partners will continue to prioritize the investigation and prosecution of violent crimes in a manner that promotes victim rights and ensures just consequences for those who perpetrate violent crimes.” Grossman thanked the prosecution team, the FBI and the National City Police Department for their excellent work on this case.

“Today’s sentence should send a very clear message to violent criminals throughout the county – the FBI’s Violent Crimes Task Force will utilize all investigative resources and law enforcement partnerships to track down and bring to justice those who commit violent acts and put lives in danger,” said FBI Special Agent in Charge Suzanne Turner. “The FBI is proud to work alongside our partners at the National City Police Department and the United States Attorney’s Office to help keep our communities safe. I hope this sentence brings a sense of justice and closure to those victims whose lives were viciously impacted.”

DEFENDANT                                               Case Number 20cr0239-WQH                                     

Devon Dwayne Brooks                                   Age: 23                                   San Diego, CA

SUMMARY OF CHARGES

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

Maximum penalty: Twenty years in prison

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

Maximum Penalty: Life; Consecutive Mandatory Minimum: Seven years per count

AGENCY

Federal Bureau of Investigation

National City Police Department

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

Assistant U. S. Attorneys Joseph J.M. Orabona (619) 546-7951 and Jennifer E. McCollough (619) 546-8773

NEWS RELEASE SUMMARY – March 2, 2022

SAN DIEGO – Two former tax preparers based in El Cajon pleaded guilty in federal court today to their involvement in a tax return scam that resulted in the filing of hundreds of false returns.    

In a hearing before U.S. District Judge Gonzalo P. Curiel, Mimi Bozzo, also known as Mimi Morrison, and Vincent Bozzo, admitted their involvement in a conspiracy to defraud the United States by aiding and assisting the filing of false income tax returns.  Mimi and Vincent Bozzo admitted they previously owned and operated a tax return preparation business in El Cajon under various business names, including “All Pro Services” and “A to Z Tax Preparation,” that solicited taxpayers by passing out flyers and business cards at local welfare offices, homeless shelters, and trolley stations. 

The Bozzos additionally admitted that from January 2014 through April 2018, they knowingly prepared and filed several hundred federal income tax returns that contained false Schedule C business income and expenses, resulting in fraudulently inflated tax credits and refunds.  Specifically, the Bozzos encouraged taxpayers to create false receipts for income and expenses, and then prepared and submitted tax returns based on these false receipts.  In total, the false returns prepared and filed by Vincent and Mimi Bozzo caused the IRS to disperse refunds to taxpayers with losses over $225,000 and $540,000 respectively

“Tax fraud continues to be a growing problem plaguing our community,” said U.S. Attorney Randy Grossman. “When these tax fraud scams committed by local tax preparers are brought to our attention, we will work with the IRS to unravel the fraud and prosecute those responsible for defrauding the IRS and honest taxpayers in order to protect the integrity of our tax system.” Grossman thanked the prosecution team and the IRS for their excellent work on this case.

“The Bozzos, working as return preparers, had a duty to assist clients with preparing and filing accurate income tax returns.  Instead the Bozzos targeted those in need at local welfare offices and homeless shelters to perpetrate a multi-year tax fraud scheme,” said Ryan L. Korner, IRS Criminal Investigation Special Agent in Charge of the Los Angeles Field Office. “IRS Criminal Investigations reminds the public to choose a tax preparer wisely.  Each year taxpayers’ personal information is comprised by unscrupulous tax preparers.  For more information go to IRS.gov.”

Mimi and Vincent Bozzo are scheduled to be sentenced on June 13, 2022, at 8:30 a.m. before U.S. District Judge Gonzalo P. Curiel.

The public is reminded that tax-related identity theft occurs when someone uses your stolen SSN (or the SSN of a dependent) to file a tax return claiming a fraudulent refund. If your SSN is compromised and you know or suspect you are a victim of tax-related identity theft, the IRS recommends these additional steps:

•           Respond immediately to any IRS notice; call the number provided.

•           Complete IRS Form 14039, Identity Theft Affidavit, if your e-filed return is rejected because of a duplicate filing under your SSN.  Attach the competed form to your return and mail according to instructions.

•           Continue to pay your taxes and file your tax return, even if you must do so by paper.

•           If you previously contacted the IRS and did not have a resolution, you may contact them for specialized assistance at 1-800-908-4490.

Link:  The link to IRS Form 14039 is https://www.irs.gov/pub/irs-pdf/f14039.pdf  

DEFENDANTS                                 Criminal Case No. 20CR2944-GPC

Mimi Bozzo                                        Age: 60           Trinity, Texas

Vincent Bozzo                                    Age: 60           Trinity, Texas

SUMMARY OF CHARGES

Title 18, United States Code, Section 371 B Conspiracy to Defraud the United States

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

INVESTIGATING AGENCIES

Internal Revenue Service-Criminal Investigation

Assistant U. S. Attorneys Joseph Orabona (619) 546-7951 or Elizabet Brown (619) 546-8921

NEWS RELEASE SUMMARY – March 1, 2022

SAN DIEGO – Jaime Angel Zamora was arraigned today in federal court on charges involving theft of firearms from the premises of Poway Weapons & Gear, a federal firearms licensee, and felon in possession of firearms.

According to a federal complaint unsealed today, in the early morning hours of November 21, 2021, Zamora and another suspect burglarized Poway Weapons & Gear in Poway by prying open the side door of the business and stealing approximately 12 firearms from the premises.

“The United States Attorney’s Office and our law enforcement partners in the Southern District of California are committed to enforcing federal firearms laws,” said U.S. Attorney Randy Grossman. Grossman thanked the prosecution team, the ATF, San Diego Police Department, San Diego County Sheriff’s Department and San Diego County Probation Department for their excellent work on this case.

“ATF remains committed to reducing gun crime and to making our communities safer,” said Bureau of Alcohol, Firearms and Explosives (ATF) Los Angeles Field Division Special Agent in Charge Monique Villegas. “ATF works with its local, state and federal partners to stop the flow of guns being used in crimes, by targeting these individuals to prevent, interrupt, and reduce violence. Successful arrests and prosecutions are the result of effective partnerships.”

“This case is a fine example of deputies in the field and the Sheriff's Crime Laboratory working together," said Acting San Diego County Sheriff Kelly Martinez. “We join our federal law enforcement partners in their commitment to bring those who commit gun crimes to justice.”

According to the complaint, Zamora and the other suspect attempted to make entry into the business through a window, but the metal bars prevented their entry. Surveillance video showed the suspects gaining access to the gunsmith office and carrying out multiple firearms from the business. During the commission of the burglary, surveillance video showed Zamora (“Suspect #1”) wearing gloves, a dark hoodie, a light hat underneath the hoodie, a light face mask, light khaki pants, and white shoes, according to court records. The other suspect (“Suspect #2”) was wearing gloves, a dark hoodie, a light hat, a dark face mask, light khaki pants, and black shoes.  Both suspects were carrying a pry tool in hand as they approached the store.

According to the complaint, the suspects used a stolen white Ford Econoline van during the commission of the burglary. Surveillance video showed that the van had several unique features – front end damage, no front plate, and a roof rack. Law enforcement officials later recovered the van, which had been abandoned after the burglary in San Diego.  Inside the van, officers found a Poway Weapons & Gear bag, a black flashlight, a blue bandana, and a brown beanie.

According to the complaint, the Sheriff’s lab conducted a DNA analysis and found that the brown beanie recovered from the stolen van had a very strong inclusive DNA profile for Zamora.

According to court records, Zamora and the other suspect allegedly stole five semi-automatic pistols and seven semi-automatic rifles from Poway Weapons & Gear.

According to the complaint, in December 2021, law enforcement officers searched Zamora’s residence and found items consistent with the burglary at the Poway Weapons & Gear, such as blue and white bandanas, white shoes, black and gray gloves, a dark ski mask, and a blue jacket. While officers did not recover any of the firearms from the burglary, they did find two firearms in a vehicle where Zamora was an occupant, including a privately-made-firearm, also known as a “ghost gun.”  Zamora was subsequently arrested and held in state custody on criminal charges.

On February 17, 2022, a sealed complaint and an arrest warrant were filed against Zamora in federal court. Zamora was arrested today on the federal charges, transferred from state custody to federal custody, and appeared in federal court this afternoon. He was ordered detained without bond at today’s hearing.

This case is part of the Department of Justice’s nationwide commitment to reduce gun crimes known as Project Safe Neighborhoods, or PSN. PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develops comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

DEFENDANT                                               Case Number 22MJ0603                                         

Jaime Angel Zamora                          Age: 34                       San Diego, CA

SUMMARY OF CHARGES

Theft of Firearms from the Premises of a Federal Firearms Licensee – Title 18, U.S.C., Section 922(u)

Maximum penalty: Ten years in prison, $250,000 fine, and forfeiture of all firearms/ammunition

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

Maximum penalty: Ten years in prison, $250,000 fine, and forfeiture of all firearms/ammunition

AGENCIES

Bureau of Alcohol, Tobacco, Firearms and Explosives

San Diego County Sheriff’s Department

San Diego Police Department

San Diego County Probation Department

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

Project Safe Neighborhoods (PSN) is a nationwide commitment to reduce gun crime in American communities by networking with existing local programs that target these issues and provide these programs with additional tools necessary to be successful. PSN has operated as the U.S. Department of Justice’s primary initiative focused on reduction of gun crime since May of 2001. PSN is a collaborative effort between federal, state, and local law enforcement and prosecutors. 

Assistant U. S. Attorneys Daniel C. Silva, Mark W. Pletcher, Lisa Sanniti, and Carl Brooker

NEWS RELEASE SUMMARY – February 25, 2022

SAN DIEGO – A federal grand jury returned an indictment today charging Satishkumar Kurjibhai Kumbhani, a citizen and resident of India, with multiple crimes for his alleged role in a massive criminal conspiracy involving the cryptocurrency company he founded, BitConnect. 

The indictment alleges that Kumbhani and his co-conspirators defrauded global investors of over $2 billion—believed to be the largest cryptocurrency fraud ever charged. This indictment follows the September 2021 guilty plea by BitConnect’s lead U.S. promoter, Glenn Arcaro (21-CR-2542-TWR).

The indictment alleges that BitConnect was a textbook Ponzi scheme. BitConnect solicited investors to use its “Lending Program,” which touted BitConnect’s purported proprietary technology, known as the “BitConnect Trading Bot” and “Volatility Software,” as being able to generate substantial profits and guaranteed returns. The indictment alleges that in reality, the purported technologies generated no such profits, and merely functioned as a cover for the Ponzi scheme. In sum, earlier BitConnect investors were paid with money from later investors to promote the fraudulent scheme.

As part the criminal conspiracy, Kumbhani was further charged with a separate conspiracy seeking to commit commodities price manipulation for his attempt to artificially inflate the price of BCC and create the illusion of increased demand for BCC when the criminal scheme began to unravel. The commodities price manipulation conspiracy is believed to be the first time any cryptocurrency has been alleged to function as a commodity.

Furthermore, Kumbhani was charged with operating an unlicensed money transmitting business. To participate in the alleged Ponzi scheme that was BitConnect, unwitting BCC investors were required to use Bitcoin to purchase BCC on the “Bitconnect Exchange.” The BCC Exchange thus functioned to separate investors from the more widely used Bitcoin in exchange for the nascent BCC, which the investors could “lend” back to BitConnect to generate purported profits for the investor through the use of the above-mentioned BitConnect Trading Bot and Volatility Software.

Lastly, Kumbhani was charged with an international money laundering conspiracy for conducting global transfers of Bitcoin and BCC to global investors and cryptocurrency purchasers—all of which were proceeds of the alleged wire and securities fraud. 

“This indictment alleges a massive cryptocurrency scheme that defrauded investors of more than $2 billion,” said U.S. Attorney Randy Grossman. “The U.S. Attorney’s Office and our law enforcement partners are committed to pursuing justice for victims of cryptocurrency fraud.” Grossman thanked the prosecution team and law enforcement partners around the world who assisted with this investigation. Assistant U.S. Attorneys Daniel C. Silva, Mark W. Pletcher, Lisa Sanniti, and Carl Brooker, in partnership with Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section, lead this ongoing investigation.

“Crime, particularly crime involving digital currencies, continues to transcend international boundaries,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The department is committed to protecting victims, preserving market integrity, and strengthening its global partnerships to hold accountable criminals engaging in cryptocurrency fraud.  We thank our partners around the world for their continued efforts.”

“Today's indictment reiterates the FBI’s commitment to identifying and addressing bad actors defrauding investors and sullying the ability of legitimate entrepreneurs to innovate within the emergent cryptocurrency space,” said Special Agent in Charge Eric B. Smith of the FBI’s Cleveland Field Office. “Dressing up a tried-and-true fraud scheme with a new twist and basing it overseas will not deter the resolve and dedication of the FBI to meticulously investigate and bring such fraudsters to justice."

“As cryptocurrency gains popularity and attracts investors worldwide, fraudsters are utilizing increasingly complex schemes to defraud investors, oftentimes stealing millions of dollars,” said Special Agent in Charge Ryan L. Korner of the IRS Criminal Investigation’s (IRS-CI) Los Angeles Field Office. “However, make no mistake, our agency will continue our long tradition of following the money, whether physical or digital, to expose criminal schemes and hold the fraudsters accountable for their illegal acts of trickery and deceit.”

All investor victims of the BitConnect fraud are encouraged to visit the following webpage - https://www.justice.gov/usao-sdca/us-v-glenn-arcaro-21cr02542-twr for information on their rights as a victim, the ability to submit a victim impact statement, and to identify themselves as a potential victim.

U.S. Attorney Grossman thanked the Department of Justice’s Office of International Affairs and law enforcement partners around the world who assisted and continue to assist on this investigation. Assistant U.S. Attorneys Daniel C. Silva, Mark W. Pletcher, Lisa Sanniti, and Carl Brooker, in partnership with Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section, lead this ongoing investigation.

DEFENDANT                                                                                  

Satishkumar Kurjibhai Kumbhani                  Surat, Gujarat, India               Age: 36

SUMMARY OF CHARGES

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

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

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

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

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

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

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

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

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

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

AGENCIES

FBI

IRS-Criminal Investigation

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

 

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

NEWS RELEASE SUMMARY – February 23, 2022

SAN DIEGO – Chris Benavides of San Diego pleaded guilty in federal court today to wire fraud, admitting that while employed as the director of finance for the La Jolla Music Society, he embezzled more than $650,000 over a 10-year period.

In a hearing before U.S. Magistrate Judge Barbara Major, Benavides admitted he abused his access to the company’s accounting software and issued unauthorized checks to himself. Benavides admitted that he stole over $650,000 between October 2011 and February 2021 from the La Jolla Music Society.

Benavides used the La Jolla Music Society’s money to pay his mortgage, credit cards, and other personal expenses.  He then concealed the payments by manipulating the company’s accounting records to make it appear that they were legitimate business expenses.

The La Jolla Music Society discovered Benavides’s fraudulent activity on February 22, 2021, fired Benavides, and reported the conduct to law enforcement.

“Fraud perpetrated against non-profit organizations is particularly troubling,” said U.S. Attorney Randy Grossman. “This defendant abused his position of trust to enrich himself and will be held accountable for his crime.”  Grossman thanked the prosecution team and FBI agents for their excellent work on this case.

“The defendant spent nearly a decade abusing his trusted employment access to embezzle more than $650,000 from the La Jolla Music Society, where he most recently served as the Director of Finance,” said FBI Special Agent in Charge Suzanne Turner. “Crimes such as this can have a devastating impact on both the employer and the local community, and further shake the confidence of the donors whose charitable contributions provide critical support for non-profit organizations. I hope this guilty plea provides a sense of closure and justice for the victims.” 

Benavides is scheduled to be sentenced on May 5, 2022 at 9 a.m. before U.S. District Judge Cathy Ann Bencivengo.

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

NEWS RELEASE SUMMARY – February 18, 2022

SAN DIEGO – Gavin Michael Adcock of San Diego appeared in federal court today in connection with a grand jury indictment charging him with the sale of firearms without a license, possession of a machine gun, and distribution of fentanyl.

An affidavit in support of a warrant to search of Adcock’s residence outlined the investigation that started in July 2021 when a San Diego Police Department detective came across Adcock on the popular mobile marketplace OfferUp. Adcock was offering to sell unfinished handgun lowers, commonly referred to as “80% lowers.” According to the affidavit, Adcock told the detective, who posed as a customer, that he had completed firearms for sale as well.

According to the affidavit, Adcock and the detective began communicating about the purchase of firearms. The San Diego Police Department then partnered with the Bureau of Alcohol, Tobacco, Firearms and Explosives to further investigate Adcock’s alleged firearms trafficking activities. Through four undercover purchases between November 2021 and January 2022, ATF purchased eight firearms, ammunition, and 61 fentanyl pills from Adcock, the affidavit said.

Of the eight firearms, seven were determined to be “privately manufactured firearms,” also known as PMFs or ghost guns. One of the PMFs was determined to be a machine gun and another was an AR-15-style firearm, both of which Adcock claimed he manufactured himself.  

In addition, during Adcock’s arrest on February 17, 2022, agents seized an additional firearm and suspected fentanyl pills.

“This case is a good example of the commitment by the U.S. Attorney’s Office and our law enforcement agency partners to combat the scourge of fentanyl and illegal firearm trafficking,” said U.S. Attorney Randy Grossman.  Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.

“Over the past few years Southern California has seen an increase in individuals making firearms and selling them without a license,” said ATF Los Angeles Field Division Special Agent in Charge Monique Villegas. “These firearms are oftentimes being sold to individuals that are prohibited from possessing guns. This illegal activity will not be tolerated. ATF will aggressively continue to partner with local, state and federal law enforcement agencies to target these traffickers.”

“I would like to thank our law enforcement partners for working with SDPD's Ghost Gun Apprehension Team," said San Diego Police Chief David Nisleit. "Curbing illegal gun trafficking in our neighborhoods remains a priority for our department.”

The next court date is scheduled for February 24, 2022.

This case is the result of ongoing efforts by the U.S. Attorney’s Office, ATF and the San Diego Police Department to investigate and prosecute the trafficking of firearms – ghost guns in particular – and the distribution of dangerous illegal drugs, such as fentanyl.

DEFENDANT                                                Case Number 22cr0313-TWR                                            

Gavin Michael Adcock                                   Age: 20                                   San Diego, CA

SUMMARY OF CHARGES

Dealing Firearms without a License – Title 18, United States Code, § 922(a)(1)(A)

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

Possession of a Machinegun – Title 18, United States Code, § 922(o)

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

Distribution of Fentanyl – Title 21, United States Code, § 841(a)(1)

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

AGENCIES

Bureau of Alcohol, Tobacco, Firearms and Explosives

San Diego Police Department

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

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

NEWS RELEASE SUMMARY – February 17, 2022

SAN DIEGO – Three Guatemalan nationals who were extradited to the United States from Guatemala to face international cocaine trafficking charges appeared in federal court today before U.S. Magistrate Judges Bernard G. Skomal and Jill L. Burkhardt, who ordered that the defendants remain in custody pending trial.

The Guatemalan nationals are charged in three separate indictments stemming from Operation Guerrilla Unit, a long-term investigation spearheaded by Homeland Security Investigations and the U.S. Attorney’s Office in San Diego. 

The Guatemalan nationals include Augusto Jean Carlo Castillo-Hernandez, aka “Metal,” Jorge Alexander Campos-Oliva, aka “Peluda,” and Fabio Josue Campos-Oliva, aka “Black Chivita.”  The defendants made their initial court appearances on Friday, February 11, 2022 in San Diego before Judge Skomal. 

During today’s detention hearings, and in publicly filed documents, the defendants were described as organizers and leaders in a conspiracy to distribute cocaine in Guatemala and elsewhere.  According to the indictment and other public records, each of the defendants and their co-conspirators are alleged to have coordinated the smuggling of multi-ton quantities of cocaine from South America to Guatemala with an ultimate destination of the United States. 

Defendants Castillo-Hernandez, Jorge Campos-Oliva, and Fabio Campos-Oliva are each charged separately with participating in a conspiracy to distribute five kilograms and more of cocaine in Guatemala and elsewhere, knowing and intending that the cocaine would be unlawfully imported into the United States.  In each of these cases, the conspiracy is alleged to have continued up to and including July 28, 2020. 

On August 31, 2021, Castillo-Hernandez, Jorge Alexander Campos-Oliva, and Fabio Josue Campos-Oliva were arrested in Guatemala pursuant to extradition requests from the United States. Guatemala subsequently granted their extradition, and on February 10, 2022, they were extradited to the United States.   

Operation Guerrilla Unit is a multi-year investigation targeting high-level cocaine traffickers operating in northwest Guatemala and their suppliers.  This investigation has offered one of the most comprehensive views to date of the inner workings of cocaine trafficking in Guatemala. High-level cocaine traffickers were targeted in a massive probe involving multiple countries, multiple law enforcement agencies around the United States, and a number of federal districts. 

“These extraditions send a message to drug traffickers around the world that the Department of Justice will aggressively pursue drug traffickers who earmark multi-ton quantities of cocaine for the United States,” said U.S.  Attorney Randy S. Grossman. “Due to the collaborative efforts of Homeland Security Investigations and this Office, we will always seek to keep these drug traffickers accountable.”  Grossman thanked the prosecution team and all the law enforcement agencies for their hard work on this case.

“The extradition of these individuals demonstrates the determination of HSI San Diego special agents and our law enforcement partners to bring down critical transportation cells in the cocaine supply network from South America to the United States,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “HSI will continue to pursue the dismantlement of this organization through further arrests and extraditions in its effort to combat the flow of dangerous drugs into the United States.”

The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of the defendants. 

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

DEFENDANT                                              

Case Number 20cr2242-DMS         

Augusto Jean Carlo Castillo-Hernandez                                Age: 29            Quetzaltenango, Guatemala

   aka “Metal,” aka “Joker”

Case Number 20cr2241-DMS         

Jorge Alexander Campos-Oliva                                             Age: 44            Guatemala City, Guatemala

   aka “Peluda,” aka “Papa,” aka “Magico”

Case Number 20cr2240-DMS         

Fabio Josue Campos-Oliva                                                     Age: 46            Guatemala City, Guatemala

   aka “Black Chivita”

SUMMARY OF CHARGES

International Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Section 959, 960, 963
Criminal Forfeiture – Title 21, U.S.C., Section 853

Maximum Penalty: Life in prison and $10 million fine

AGENCIES

Homeland Security Investigations (HSI)

Customs and Border Protection (CBP)

Federal Bureau of Investigation (FBI)

U.S. Coast Guard

HSI Attaché Guatemala City, Guatemala

HSI Attaché Mexico City Mexico

Department of Justice, Office of International Affairs

Department of Justice, Office of Enforcement Operations

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

Joint Interagency Task Force-South (JIATF-S)

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

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

NEWS RELEASE SUMMARY – February 17, 2022

SAN DIEGO – Suspected drug trafficker Rafael Orlando Ramirez Barillas, a Guatemalan national who was extradited to the United States from Guatemala on Thursday, February 10, 2022 to face international cocaine trafficking and maritime smuggling charges in the Southern District of California, appeared in federal court today and was ordered detained pending trial.

Ramirez Barillas, aka “Thor,” is charged in an indictment stemming from a long-term joint investigation led by Homeland Security Investigations and the Drug Enforcement Administration in conjunction with the U.S. Attorney’s Office in San Diego. 

Ramirez Barillas is charged with operating a conspiracy to distribute five kilograms and more of cocaine in Colombia, Ecuador, Guatemala, Costa Rica, El Salvador, Mexico and elsewhere, knowing and intending that the cocaine would be unlawfully imported into the United States.  Ramirez Barillas is also charged with being in a conspiracy to distribute five kilograms and more of cocaine on board a vessel. 

Ramirez Barillas made his initial court appearance on Friday, February 11, 2022 in San Diego before U.S. Magistrate Judge Bernard G. Skomal.  This afternoon, U.S. Magistrate Judge Skomal ordered Ramirez Barillas detained pending trial. 

According to court documents and statements made by prosecutors at today’s hearing, Ramirez Barillas was alleged to be the partner of convicted Guatemalan drug trafficker Luis Carlos Melgar-Morales, aka “Aquaman,” who admitted to distributing over 10,000 kilograms of cocaine during an approximately two-year conspiracy.  Ramirez Barillas was described as an organizer and leader in the conspiracy to distribute cocaine in Guatemala and several other South and Central American countries.  As part of the conspiracy, and as alleged in the indictment and set forth in other public documents, Ramirez Barillas and his co-conspirators coordinated the smuggling of multi-ton quantities of cocaine from South America to Guatemala with an ultimate destination of the United States. 

During the investigation, the United States Coast Guard made multiple seizures of cocaine from vessels on international waters that were linked to Ramirez Barillas and his co-conspirators.  According to the indictment, the conspiracy began on a date unknown and continued up to and including November 2018. 

On July 17, 2021, Ramirez Barillas was arrested in Guatemala pursuant to an extradition request from the United States. Guatemala subsequently granted his extradition, and on February 10, 2022, Ramirez Barillas was extradited to United States. 

“This office is committed to aggressively pursuing drug traffickers in Central America who use international waters as a corridor to smuggle cocaine to the United States,” said U.S. Attorney Randy Grossman. “This extradition marks the culmination of years of efforts by agents and prosecutors to keep those who flood the United States with cocaine accountable for their actions.” Grossman thanked the prosecution team and law enforcement agencies for their excellent work on this case.

“This extradition demonstrates the need to continue to work together with our foreign partners to disrupt drug trafficking,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “This effort also resulted in significant seizures of the transnational criminal organization’s narcotics, firearms, and illicit proceeds, and led to the identification of additional high-ranking members. HSI will remain committed in our investigative efforts to bring additional members of this organization to justice.”

“This case, including last week’s extradition, demonstrates the success DEA and our law enforcement partners have had targeting foreign drug sources of supply,” said DEA Special Agent in Charge Shelly S. Howe. “DEA will continue to seize large quantities of drugs before they reach our shores and devastate our communities.  Our strong relationships with our foreign counterparts allow us to bring drug suppliers to justice in the United States.”

“This indictment resulted from our collaborative efforts to disrupt transnational criminal organizations and prevent illicit drugs from making their way to the United States,” said Rear Adm. Brian Penoyer, the Eleventh Coast Guard District commander. “I am grateful for the hard work of the dedicated women and men of the Department of Justice and the Southern District of California who built this case alongside Coast Guard ships and crews involved in several interdiction cases in the Eastern Pacific Ocean, dismantling smuggling organizations, putting smugglers behind bars and keeping drugs off our streets. I hope our Coast Guard crews conducting counterdrug patrols today in the Pacific Ocean see the effects of this monumental occasion. I cannot thank the Southern District of California enough for their efforts to ensure justice is served to those seeking to harm our country.”

The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Ramirez Barillas. 

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

The public is reminded that an indictment 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                                              

Case Number 18cr4696-DMS         

Rafael Orlando Ramirez Barillas                                           Age: 32            Guatemala City, Guatemala

   aka “Thor,” aka “Rafa”

SUMMARY OF CHARGES

International Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Section 959, 960, 963
Criminal Forfeiture – Title 21, U.S.C., Section 853

Maximum Penalty: Life in prison and $10 million fine

Conspiracy to Distribute Cocaine on Board a Vessel Subject to the Jurisdiction of the United States –
Title 46, U.S.C., Sections 70503, 70506(b)
Criminal Forfeiture – Title 46, U.S.C., Section 70507(a)

Maximum Penalty: Life in prison and $10 million fine

AGENCIES

Homeland Security Investigations (HSI)

Drug Enforcement Administration (DEA)

Customs and Border Protection (CBP)

U.S. Coast Guard

HSI Attaché Guatemala City, Guatemala

HSI Attaché Mexico City Mexico

Department of Justice, Office of International Affairs

Department of Justice, Office of Enforcement Operations

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

Joint Task Force-Investigations (JTF-I)

Joint Interagency Task Force-South (JIATF-S)

Assistant U. S. Attorneys Aaron P. Arnzen (619) 546-8384 and Andrew J. Galvin (619) 546-9721     

NEWS RELEASE SUMMARY – February 17, 2022

SAN DIEGO – Five men from California, Nevada and Florida are charged in an indictment unsealed today with conspiring to manipulate the market for the stock of a healthcare company whose products include COVID-19 diagnostic tests.

The defendants are accused of manipulating the market for the stock of Global WholeHealth Partners Corporation (Ticker: GWHP), which advertised itself as a company focused on healthcare-related development and products. The defendants include Brian Volmer of Carson City, Nevada; Joshua Yafa of Boca Raton, Florida, and his brother, Jamie Yafa of Kissimmee, Florida; Charles Strongo of San Clemente, California; and Carl Marciniak of Minden, Nevada. All were arrested or otherwise contacted by law enforcement today in their hometowns.

According to the indictment, the defendants’ crime involved efforts to run a pump-and-dump scheme in Global WholeHealth Partners’ stock. Their scheme included maintaining control over the company’s free-trading shares through secret nominee accounts; artificially inflating the stock’s price and trading volume by promoting the stock through high pressure call rooms and penny stock newsletters; engaging in manipulative stock trading; and selling the stock at inflated prices to unwitting investors.  The defendants collectively spoke on dozens of recorded calls about key aspects of their scheme.

“Pump and dump schemes deteriorate the integrity of the securities markets and destroy Main Street investors’ confidence in their ability to invest on a level playing field,” said U.S. Attorney Randy Grossman.  “This case should serve as a reminder that individuals who manipulate the United States securities markets are being scrutinized by law enforcement and will be held accountable.” Grossman thanked the prosecution team, the FBI and the Securities and Exchange Commission for their excellent work on this case.

“These defendants engaged in a conspiracy to inflate stock prices through false and misleading information to enrich themselves and make a quick profit,” said FBI Special Agent in Charge Suzanne Turner. “The FBI is proud to work alongside our partners at the United States Securities and Exchange Commission to preserve the integrity of the stock market and protect honest investors.”

The Securities and Exchange Commission has also taken civil action against several of the defendants in this case.

Case Number 21cr1310-WQH

DEFENDANTS                                                        

Brian Volmer                                                  Age: 58                                   Carson City, NV

Joshua Yafa                                                    Age: 47                                   Boca Raton, FL

Jamie Yafa                                                      Age: 43                                   Kissemmee, FL

Charles Strongo                                              Age: 58                                   San Clemente, CA

Carl Marciniak                                                Age: 57                                   Minden, NV

SUMMARY OF CHARGES

Conspiracy – Title 18, U.S.C. § 371

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

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

AGENCIES

Federal Bureau of Investigation

United States Securities and Exchange Commission

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

Assistant U. S. Attorney Sabrina L. Fève (619) 546-6786    

NEWS RELEASE SUMMARY – February 15, 2022

SAN DIEGO – Mexican businessman Carlos Guerrero pleaded guilty in federal court today, admitting that he conspired to sell and use hacking tools manufactured by private companies in Italy, Israel and elsewhere.

According to court documents, Guerrero owned and operated a consortium of U.S. and Mexican companies and brokered sales of interception and surveillance tools to Mexican government clients, as well as private and commercial customers. In 2014 and 2015, Guerrero worked primarily with an Italian company that sold hacking devices and geolocation tools.  Through relationships developed at Guerrero’s direction, Guerrero’s company subsequently brokered the sale of interception devices and hacking services manufactured by Israeli and other companies. 

In 2016 and 2017, for example, Guerrero marketed signal jammers, Wi-Fi interception tools, IMSI catchers, and the ability to hack WhatsApp messages to prospective clients in the U.S. and Mexico.  Guerrero admitted to knowing that, in some cases, his Mexican government clients intended to use the interception equipment for political purposes, rather than for legitimate law enforcement purposes.  In one case, he knowingly arranged for a Mexican mayor to gain unauthorized access to a political rival’s Twitter, Hotmail, and iCloud accounts. Guerrero also admitted that the hacking tools and technologies he brokered would be used for commercial and personal purposes by private clients.

For example, Guerrero himself used the equipment to intercept the phone calls of a U.S. rival while the rival was in both Southern California and Mexico, and Guerrero’s company arranged for a large Mexican business to intercept the phone and email accounts of a Florida-based sales representative in exchange for approximately $25,000.

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

“With this guilty plea, we are sending a clear message that companies and individuals who unlawfully violate privacy rights will not be tolerated and they will be held accountable,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “The world we live in is increasingly interconnected by technology meant to improve our lives, but as seen in this case, this same technology can be acquired by bad actors with harmful intentions. HSI and our law enforcement partners will remain committed to bringing to justice those who attempt to manipulate these platforms for nefarious purposes.”

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

DEFENDANT                                   Case Number 22cr0280-JLS                                   

Carlos Guerrero                                  Age: 48                       Chula Vista, CA and Tijuana, Mexico

SUMMARY OF CHARGES

Conspiracy – Title 18, U.S.C., Section 371 (to violate 18 U.S.C. §§ 2511(1)(a) and 2512(1)(b))

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

AGENCY

Homeland Security Investigations

Assistant U. S. Attorneys Stephen H. Wong (619) 546-9464 and Mikaela L. Weber (619) 546-9734    

NEWS RELEASE SUMMARY – February 14, 2022

SAN DIEGO – Jahvaris Lamoun Springfield was sentenced in federal court today to 300 months in prison for selling the fentanyl pills that resulted in the fatal overdose of U.S. Army veteran Brendan James Gallagher on February 5, 2019. This is the longest sentence to date in this district for this crime.

On August 27, 2021, following a three-day trial before U.S. District Judge Larry Alan Burns, a jury convicted Springfield of causing Gallagher’s death by distributing fentanyl to Gallagher on February 5, 2019.

The evidence presented at trial showed that Gallagher was a U.S. Army veteran who served overseas in Afghanistan. Upon his return to the United States, Gallagher was honorably discharged. In 2018, Gallagher moved from Boston to San Diego in an attempt to break his addiction. However, Gallagher turned to opioid drugs in the form of counterfeit oxycontin pills later that year.

The evidence also showed that, on the afternoon of February 5, 2019, Gallagher sent text messages to Springfield seeking to purchase oxycontin pills. Later that day, Gallagher’s roommates called 911 to report that Gallagher was nonresponsive in his bedroom. When agents arrived at the residence, they found two counterfeit oxycontin pills that tested positive for fentanyl. Additionally, Gallagher’s autopsy showed a fatal concentration of fentanyl in his blood. In the investigation that followed, agents obtained evidence showing that Springfield sold Gallagher pills on February 5, 2019. When agents arrested Springfield, they found counterfeit oxycontin pills that tested positive for fentanyl in the vehicle Springfield had been driving.

DEA Narcotics Task Force Team 10 led the investigation in this case. Team 10 is a specialty unit, with investigators from HSI, FBI, San Diego Police Department, CA Department of Health Care Services, and the San Diego District Attorney’s Office, that investigates overdose deaths in San Diego.  Team 10 responds to the discovery of overdose victims and aggressively pursues criminal cases, up the distribution chain, against both the dealers and their sources of supply.

“This is the longest federal sentence to date in a case of a drug dealer being held responsible for the death of a customer in the Southern District of California, and it should put dealers and those who supply them on notice.  Every time we have an overdose death, law enforcement will come looking for you, because lives are at stake,” said U.S. Attorney Randy Grossman. “We will not stop with the street-level dealers but will follow the supply chain as far up as necessary and will use every available criminal and civil tool to combat this deadly epidemic and stop these tragic losses.” Grossman thanked the prosecution team as well as DEA Team 10 investigators for their hard work on the case.

“Today’s sentencing of Jahvaris Springfield is a reflection of the hard work of the investigators assigned to DEA’s Team 10,” said DEA Special Agent in Charge Shelly S. Howe.  “These dedicated men and women work tirelessly around the clock to hold drug dealers accountable for the deaths they are causing and to bring justice to families who have lost their loved ones. This 25-year sentence is proof that their efforts have paid off.”

The United States Attorney’s Office is working closely with the San Diego County District Attorney’s Office, the San Diego Police Department, the Drug Enforcement Administration and other federal, state and local law enforcement partners to investigate and prosecute cases targeting those who supply drugs in fatal overdose cases.

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

DEFENDANT                                               Case Number 20cr2923-LAB                                       

Jahvaris Lamoun Springfield                         Age: 31           San Diego

SUMMARY OF CHARGES

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

Maximum penalty: Life in Prison

AGENCY

Drug Enforcement Administration

Federal Bureau of Investigation

San Diego Police Department

Homeland Security Investigations

California Department of Health Care Services

San Diego County District Attorney’s Office

Assistant U.S. Attorney Joshua Mellor (619) 546-9733 and Special Assistant U.S. Attorney Nicole Bredariol (619) 546-8419

NEWS RELEASE SUMMARY – February 11, 2022                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

SAN DIEGO – Pedro Cornelio Pilligua Iduarte, the owner of multiple Ecuadorian flagged vessels which allegedly provided logistical support to drug laden vessels, was extradited to the United States from Spain yesterday.

On March 19, 2021, a federal grand jury sitting in the Southern District of California returned an indictment charging Pilligua Iduarte, and others, with participating in a long-running conspiracy to traffic substantial quantities of cocaine from South America to the United States.

An Ecuadorian national, Pilligua Iduarte was apprehended by Spanish authorities in April 2021 while visiting Madrid. He arrived in San Diego on February 11, 2021, and made his initial appearance today before U.S. Magistrate Judge Bernard G. Skomal. He is scheduled for a detention hearing before Judge Skomal on February 17, 2022, at 1:30 p.m.

This case is part of Operation Pangeros Locos, a multi-year investigation led by Homeland Security Investigations, along with the Drug Enforcement Administration, the Federal Bureau of Investigation, Customs and Border Protection, and United States Coast Guard Investigative Service and has had a significant impact on drug distribution from source countries in South America.

According to court documents, several Ecuadorian fishing vessels, based in Manta, Ecuador, have operated with impunity while providing material support to drug laden vessels to allow them to transport tons of cocaine over thousands of nautical miles of open ocean from Ecuador and Colombia to Mexico, for eventual distribution to the United States. These fishing vessels provide fuel, replacement parts, communication devices, or anything else needed to help the drug laden vessels complete their thousand-mile journey trafficking metric tons of cocaine from Colombia to Mexico. Without the support provided by the fishing vessel captains and owners, these drug laden vessels, typically pangas or low-profile vessels, would not be able to complete this long journey. This investigation has resulted in the seizure of more than 50,000 kilograms of cocaine, the indictment of 27 fishing vessel captains and owners, and the prosecution of 65 cocaine boat crewmembers.

“The Department of Justice appreciates the cooperation of the Spanish authorities in this matter. With the assistance of our law enforcement colleagues at home and around the world, we will aggressively pursue every avenue available in bringing drug traffickers to justice,” said U.S. Attorney Randy Grossman. Grossman thanked the prosecution team and  San Diego Strike Force agents, led by Homeland Security Investigations as well as representatives from DEA, FBI, U.S. Coast Guard Investigative Service (CGIS), and Customs and Border Protection for their excellent work on this case.

“This extradition sends a resounding message to drug traffickers around the world that the United States law enforcement community will vehemently pursue those who seek to harm Americans with their deadly drugs and violence,” said HSI San Diego Special Agent in Charge Chad Plantz, who further praised the efforts of the San Diego Strike Force for their support and contribution to this criminal investigation and extradition.

“This indictment is a testament to the success of our collaborative efforts to disrupt transnational criminal organizations and prevent illicit drugs from making their way to America,” said Rear Adm. Brian Penoyer, the Eleventh Coast Guard District commander. “It is a privilege to work alongside the dedicated women and men of the Department of Justice and the Southern District of California who play such a crucial role in the successful team effort stopping these organizations. The hard work of our Coast Guard ships and crews in the Eastern Pacific Ocean culminates in indictments like this that dismantle smuggling organizations, put smugglers behind bars, and keep drugs off our streets.”

This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location.  This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks.  These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime.  The specific mission of the San Diego Strike Force is to target the most significant drug trafficking organizations in Mexico, Central and South America.

OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy.  Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement.  The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.

The Justice Department’s Office of International Affairs worked with law enforcement partners in Spain to secure the arrest of Pilligua Iduarte and his extradition to the United States.

The United States is represented in court by Assistant U.S. Attorneys Joshua Mellor and Nicole Bredariol.

The public is reminded that an indictment 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: 21-cr-0896-JLS

Defendant Number

Name

Age

Hometown

2

Pedro Cornelio Pilligua Iduarte

aka Don Pedro, aka Corne, aka P, aka Patron, aka Jefe

48

Manabi, Ecuador

Summary Of Charges

International Conspiracy to Distribute Controlled Substances, 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.

Conspiracy to Possess with Intent to Distribute Cocaine on Board a Vessel, in violation of Title 46 U.S.C. §§ 70503, and 70506. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.

AGENCIES

Homeland Security Investigations

Drug Enforcement Administration

Federal Bureau of Investigation

Customs and Border Protection

United States Coast Guard Investigative Service

Policia Nacional del Ecuador

Policia Nacional de Colombia

United States Marshals Service

Department of Justice, Organized Crime Drug Enforcement Task Forces

Department of Justice, Office of Enforcement Operations

Department of Justice, Office of International Affairs

Assistant U.S. Attorneys Matthew J. Sutton (619) 546-8941 and Mikaela L. Weber (619) 546-9734

NEWS RELEASE SUMMARY – February 11, 2022                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

SAN DIEGO – Brayan Alberto Rodriguez Alcala, an alleged Sinaloa Cartel drug trafficker, was extradited to the United States from Ecuador today.

On October 19, 2021, a federal grand jury sitting in the Southern District of California returned an indictment charging Rodriguez Alcala with participating in a long-running worldwide conspiracy to traffic substantial quantities of cocaine, from Central and South America to Mexico and ultimately into the United States, as well as laundering millions of dollars in drug proceeds.

Rodriguez Alcala was apprehended by Ecuadorian authorities in November 2021 while visiting Quito, and Ecuador granted the United States’ extradition request in January 2022.  He arrived in San Diego this morning and made his initial appearance today before U.S. Magistrate Judge Bernard G. Skomal. He is scheduled for a motion hearing/trial setting before Judge Curiel on May 16, 2022, at 1:30 p.m.

“Those who export dangerous narcotics to the United States and seek to evade justice will find no place to hide,” said U.S. Attorney Randy S. Grossman. “The Department of Justice appreciates the cooperation of the Ecuadorian authorities in this matter. By working with our law enforcement partners at home and around the world, we will continue to work to dismantle dangerous drug cartels.”

“This extradition sends a resounding message to drug traffickers around the world that the United States law enforcement community will vehemently pursue those who seek to harm to Americans with their deadly drugs and violence.” said HSI San Diego Special Agent in Charge Chad Plantz who further praised the efforts of the San Diego Strike Force for their support and contribution to this criminal investigation and extradition.”

“This extradition is another victory against the Sinaloa Cartel that will negatively impact their cocaine distribution operation,” said DEA Special Agent in Charge Shelly S. Howe. “The DEA is committed to holding anyone who profits from drug trafficking accountable, regardless of where they are located in the world.”

“The FBI is proud to work alongside our international and federal partners from HSI, DEA, and IRS to bring wanted persons back to the United States to face justice,” said FBI Special Agent in Charge Suzanne Turner. “This collaborative effort should send a message to fugitives worldwide – the United States government’s international reach has no limits. We will continue to use all investigative resources and international law enforcement partnerships to disrupt these transnational criminal organizations. The FBI is grateful for the hardline stance President Guillermo Lasso and the Government of Ecuador have taken against international fugitives.”  

“The supply of narcotics illegally crossing our borders, entering our communities, and killing our citizens is completely fueled by greed,” said IRS Criminal Investigation Special Agent in Charge Ryan L. Korner. “For decades, IRS Criminal Investigation has been committed to working with our law enforcement partners to trace and stem the flow of illicit money to dismantle the drug trade. Today’s extradition of Brayan Rodriguez Alcala, who is charged with drug trafficking and money laundering, demonstrates that you cannot hide from justice.”

The Justice Department extends its gratitude to the Government of Ecuador, and its prosecutorial and law enforcement authorities for making the extradition possible. The Justice Department’s Office of International Affairs and the United States State Department provided significant assistance in securing the defendant’s extradition from Ecuador.

This case is part of a long-running investigation targeting the Valenzuela Transnational Criminal Organization, which is a significant component of the Sinaloa Cartel. To date, the investigation has resulted in the charging of 34 defendants and the seizure of approximately $3.8 million dollars in U.S. currency, 685 kilograms of cocaine, 24 kilograms of fentanyl, and 20,000 rounds of .50 caliber ammunition.

This prosecution is also part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.

The United States is represented in court by Assistant U.S. Attorneys Matthew J. Sutton and  Mikaela L. Weber

The public is reminded that an indictment 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: 21-cr-2960-GPC

Defendant Number

Name

Age

Hometown

12

Brayan Alberto Rodriguez Alcala

23

Culiacan, Mexico

Summary Of Charges

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

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

Conspiracy to Distribute Cocaine, in violation of Title 21 U.S.C. §§ 841(a)(1) and 846. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.

Conspiracy to Launder Monetary Instruments, in violation of Title 18 U.S.C. 1956(h). Term of custody up to 20 years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved.

AGENCIES

Homeland Security Investigations

Drug Enforcement Administration

Federal Bureau of Investigation

Internal Revenue Service - Criminal Investigation

United States Marshals Service

Assistant U. S. Attorney Loren G. Rene (619) 546-8783

NEWS RELEASE SUMMARY – February 9, 2022

SAN DIEGO – Juan Francisco Sanchez-Campos of Phoenix, Arizona, was sentenced in federal court to 41 months in prison for speeding through a U.S. Border Patrol checkpoint on State Route 94 near Jamul, intentionally sideswiping and ramming multiple vehicles, injuring several Border Patrol agents and jeopardizing the lives of 10 undocumented passengers he was smuggling into the U.S. from Mexico.

Sanchez-Campos, a Mexican national, pleaded guilty in June 2021 to one count of transportation of certain aliens, one count of highspeed flight from an immigration checkpoint, and one count of assault on a federal agent. 

During the sentencing hearing last week, Border Patrol Agent Andrew Carlson who was injured during the February 23, 2021, assault described how Sanchez-Campos slowed down as he approached the checkpoint and then suddenly took off, narrowly missing several Border Patrol agents, and then proceeded to weave in and out of civilian traffic at speeds up to 100 mph for approximately 10 minutes.  The agent told the court Sanchez-Campos rammed four agents’ vehicles in an attempt to flee, and the agents eventually disabled his vehicle using a box-in maneuver. Although the migrants were uninjured, four Border Patrol agents sustained serious injuries, including, but not limited to, shoulder, back, hip, and neck injuries necessitating ongoing medical treatment.

During the sentencing hearing, U.S. District Judge Cathy Ann Bencivengo noted that the defendant showed a callous disregard for human life.

“This defendant risked many lives during his reckless attempt to blow through a checkpoint,” said U.S. Attorney Randy Grossman. “He cared nothing about other motorists, Border Patrol agents or even the people in his vehicle. All he wanted was his payday – a day that will never come, thanks to the brave Border Patrol agents who made sure this defendant was stopped.” Grossman thanked the Border Patrol agents who were injured trying to keep the driver from hurting anyone, and he praised the prosecution team as well as Border Patrol and FBI agents who investigated this case.

“Our current success is the result of the strong resolve and determination of the many men and women of the U.S. Border Patrol and the U.S. Attorney’s Office,” said Chief Patrol Agent Aaron Heitke. “Collaboratively, our efforts resulted in the arrest, conviction, and just sentencing of this callous smuggler.”

DEFENDANT                                               Case Number 21-cr-00879-CAB                           

Juan Francisco Sanchez-Campos                   Age: 24                                   Phoenix, Arizona

SUMMARY OF CHARGES

Transportation of Certain Aliens, in violation 8 U.S.C. § 1324(a)(1)(B)(ii)

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

High Speed Flight from Immigration Checkpoint, in violation 18 U.S.C. § 758

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

Assault on a Federal Agent, in violation 18 U.S.C. 111 (a)(b)

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

AGENCIES

Federal Bureau of Investigation

U.S. Border Patrol

SAN DIEGO – Naval seaman Sergio Reinaldo Williams pleaded guilty in federal court today, admitting that he sent graphic sexual messages via social media to a civilian woman and members of her family, posted sexual videos of her on Pornhub.com without her knowledge or consent, and sent screenshots of the Pornhub.com videos to the victim’s niece.

According to the plea agreement, Williams caused substantial emotional distress to the victim and her family with his virtual attacks. He admitted that he wrote a Facebook message to the victim on October 11, 2020: “I know it all. Don't worry about it the rest of the world will too. I felt your pain, now you're going to feel mine…you will remember me no matter what.”

After Williams posted the videos on Pornhub and the victim texted him about it, Williams replied: “You did this. Like I said, I felt your sting, now you’re going to feel mine.”

Williams also repeatedly threatened the victim, texting her “I'm always around and my eyes are everywhere” and, after she blocked him on social media, “U want it to be over with and this fade away, unblock me and video me…it will only get worse if u don’t.”

“The defendant conducted a disturbing campaign of revenge, harassment and intimidation that inflicted tremendous emotional distress on the victim and her family,” said U.S. Attorney Randy Grossman.  “We are committed to seeking justice for victims of cyberstalking and holding the stalkers accountable for their malicious and devastating virtual attacks.”  Grossman commended the prosecution team and the Naval Criminal Investigative Service and DOJ teams that diligently pursued this matter.

Williams is scheduled to appear before U.S. District Judge Cynthia A. Bashant for sentencing on May 2, 2022 at 9 a.m.

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

Those who have experienced cyberstalking by an active duty service member are urged to contact the following anonymous tip lines: https://www.ncis.navy.mil/Resources/NCIS-Tips/ (Navy and Marines), https://www.cid.army.mil/report-a-crime.html (Army), and https://www.osi.af.mil/Submit-a-Tip/ (Air Force), or call the Department of Defense Hotline at (800) 424-9098. Victims of cyberstalking by non-active duty members should contact local law enforcement or their FBI or HSI field office.

DEFENDANT                                              Case Number 21cr2192-BAS                                             

Sergio Reinaldo Williams                             Age: 36                                   Coronado, CA

SUMMARY OF CHARGES

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

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

AGENCY

Naval Criminal Investigative Service

 

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 – February 2, 2022

SAN DIEGO – Former U.S. Navy Captain Donald Hornbeck pleaded guilty in federal court today to bribery charges, admitting that while he directed the operations of all combatant ships in the Seventh Fleet, he accepted at least $67,830 in extravagant dinners, hotels, parties and prostitutes from foreign defense contractor Leonard Francis in exchange for breaching his official duty to the U.S. Navy.

According to his plea agreement, Hornbeck admitted that he corruptly used his official position to benefit Francis, the owner and CEO of Singapore-based Glenn Defense Marine Asia, a ship husbanding company that serviced U.S. Navy ships in the Asia Pacific region.  He admitted that he endeavored to send Navy ships into ports serviced by GDMA; shared confidential Navy information with Francis in order to help GDMA; and helped with evaluating and indoctrinating potential new Navy members to help Francis.

Hornbeck was one of nine members of the U.S. Navy’s Seventh Fleet indicted by a federal grand jury in March 2017 for conspiring with Francis and for receiving bribes.  Hornbeck is the fourth of the Seventh Fleet defendants to plead guilty.  The remaining defendants - who are accused of conspiring to trade military secrets and substantial influence for sex parties with prostitutes and luxurious dinners and travel, among other lavish things of value - include U.S. Navy Rear Admiral Bruce Loveless; Captains David Newland, James Dolan and David Lausman; and Commander Mario Herrera. Trial is scheduled for February 28, 2022.   

The overarching fraud and bribery investigation has resulted in federal criminal charges against 34 U.S. Navy officials, defense contractors and the GDMA corporation. So far, 29 of those have pleaded guilty, admitting collectively that they accepted millions of dollars in luxury travel and accommodations, meals, lavish gifts, or services of prostitutes, among many other things of value, from Francis in exchange for helping GDMA win and maintain contracts and overbill the Navy by over $35 million.

“While scores of Navy officials were partying with Leonard Francis, a massive breach of national security was in full swing,” said U.S. Attorney Randy Grossman. “Today another participant has admitted that he lost his way, allowing greed to replace honor and duty as the driving force in his life. This is a day of reckoning for a captain who traded his honor and integrity for material pleasures.”

“Mr. Hornbeck abdicated the standards, responsibilities, and ideals required of a senior U.S. Navy officer over a multi-year period solely to enrich himself and others by willfully facilitating a corrupt Navy contractor's years’ long fraud against the U.S. Government,” said Kelly P. Mayo, the Director of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS).  “DCIS will continue to work unrelentingly with its law enforcement partners to mitigate corruption from within the Department of Defense and its contractors. This investigation demonstrates the American taxpayer, the Department of Defense, and the national security interests of the United States deserve better.”

“Mr. Hornbeck betrayed his oath to the Navy and deserves to be held fully accountable for his criminal actions to accept lavish gifts from Mr. Francis in exchange for influencing ship schedules in favor of ports that Mr. Francis preferred and otherwise prioritizing the business interests of GDMA and Mr. Francis over those of the Navy,” said NCIS Director Omar Lopez. “NCIS and our law enforcement partners are steadfastly committed to rooting out bribery and corruption that wastes valuable U.S. taxpayer money, damages the integrity of the United States Navy, and undermines the public trust.”

The U.S. Navy’s Seventh Fleet represents a vital piece of the United States military’s projection of power as well as American foreign policy and national security. The largest numbered fleet in the U.S. Navy, the Seventh Fleet is comprised of 60-70 ships, 200-300 aircraft and approximately 40,000 Sailors and Marines. The Seventh Fleet is responsible for U.S. Navy ships and subordinate commands that operate in the Western Pacific throughout Southeast Asia, Pacific Islands, Australia, and Russia and the Indian Ocean territories, as well ships and personnel from other U.S. Navy Fleets that enter the Seventh Fleet’s area of responsibility.

According to his plea agreement, Hornbeck admitted to receiving the following bribes from Francis:

• On February 24, 2007, during the U.S.S. Blue Ridge's port visit to Singapore, Hornbeck and others attended a cocktail reception hosted by Francis on the helipad of the Jaan Restaurant atop the Shangri-La Hotel, followed by an extravagant dinner and live entertainment. The U.S.S. Blue Ridge is the flagship of the Seventh Fleet.
• On March 24, 2007, Hornbeck and others attended a multi-course dinner hosted by Francis at the Oak Door in Tokyo, Japan, during which was served, at Francis’s expense, foie gras, Lobster Thermidor, and Sendai Tenderloin, and for dessert, “Liberté Sauvage,” the winning cake of the 10th Coupe du Monde de la Patisserie 2007, followed by cognac and cigars. During the event, the attendees posed for a photograph wearing custom-made GDMA neckties.
• On January 29, 2008, during the U.S.S. Blue Ridge's port visit to Hong Kong, Francis hosted and paid for a dinner event in the Alsace Room of the Petrus Restaurant, which Hornbeck and several others attended. Dinner that evening was an eight-course meal, featuring black truffle soup, rock lobster salad, oscetra caviar, pan-seared duck liver with pear and sunchoke, Dover sole, grilled Wagyu beef tenderloin Rossini, a selection of fine cheeses, and baked Alaska. The total cost of the event was approximately $18,371.
• On May 2, 2008, Hornbeck and others stayed at Francis’ expense for one night at the Conrad Hotel in Bangkok, during which they were entertained by prostitutes paid for by Francis. On May 4, 2008, a co-conspirator emailed Francis to notify him that Hornbeck and others “were all smiles on the drive home over their “one night in Bangkok.”
• Incident to the U.S.S. Blue Ridge's port visit to Singapore from May 6-9, 2008, Hornbeck and others stayed at Francis’s expense at the Shangri-La Hotel in Singapore.
• On May 6, 2008, Francis hosted dinner at Mezza9 in Singapore, after which, Francis arranged for several prostitutes to entertain Hornbeck and others. On May 7, 2008, Hornbeck emailed Francis to say thank you for a fantastic dinner last night. “Also really enjoyed my new Mongolian Friend,” a reference to a prostitute, to which Francis noted: “Hot Mongolian [B]arbeque Ribs!” On May 10, 2008, a co-conspirator wrote to Francis reporting, “The 3 [Ensigns] [JD, Hornbeck, and BL] were all grins this morning as we got underway! Hornbeck said he couldn’t have survived another night in Singapore with you!”
• On May 22-25, 2008, during a port visit by the U.S.S. Blue Ridge to Manila, Philippines, Hornbeck and several others stayed at Francis’ expense at the Makati Shangri-La in Manila, Philippines, where for himself and the U.S. Navy attendees, Francis booked the Presidential Suite. In this venue, Francis hosted a multi-day party, with many prostitutes in attendance. Room and alcohol charges borne by Francis exceeded $50,000 USD. On or about May 25, 2008, Hornbeck emailed Francis to say, “[J]ust wanted to say thanks - was great seeing you again. Always a pleasure spending time with you.”

Hornbeck is scheduled to be sentenced on September 8, 2022 before U.S. District Judge Janis L. Sammartino.

DEFENDANT                                               Case Number: 17-CR-0623-JLS       

Donald Hornbeck                                           Age: 61                       Greenfield, Indiana

SUMMARY OF CHARGES

Bribery of a Public Official, in violation of 18 U.S.C. § 201(b)(2)

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

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Defense Contract Audit Agency

Director of Media Relations Kelly Thornton (619) 546-9726    

NEWS RELEASE SUMMARY – February 2, 2022

SAN DIEGO – U.S. Attorney General Merrick B. Garland has released the Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for Victims of Trafficking Act.

Rooted in the foundational pillars and priorities of the interagency National Action Plan to Combat Human Trafficking, which President Biden released on Dec. 3, 2021, the Justice Department’s National Strategy is expansive in scope.  It aims to enhance the department’s capacity to prevent human trafficking; to prosecute human trafficking cases; and to support and protect human trafficking victims and survivors.

“Human trafficking is an insidious crime,” said Attorney General Garland. “Traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm. The Justice Department’s new National Strategy to Combat Human Trafficking will bring the full force of the Department to this fight.”

The Southern District of California is proud to be a leader in the fight against human trafficking. Since the enactment of the Trafficking Victims Protection Act in 2000, the Southern District has prosecuted more defendants than any other district in the country -- as of January 2021, 262 defendants in 93 separate cases. The Southern District continues to be a national leader in all types of human trafficking prosecutions, ranging from child-sex trafficking to forced labor trafficking to sex trafficking of adults by force, fraud, or coercion.

Recognizing that, sadly, San Diego is a national hub for domestic minor sex trafficking, the U.S. Attorney’s Office prosecutes individuals who profit from the sexual exploitation of children to the fullest extent of the law, and routinely obtains significant custodial time for those defendants. Recent prosecutions underscore the office’s commitment to justice for victims of these sometimes unseen crimes, including labor trafficking charges against individuals from Imperial Valley Ministries (U.S. v. Gonzalez, et al., 19-CR-3255-BTM), who coerced dozens of mostly homeless individuals to surrender welfare benefits and compelled them to panhandle up to nine hours a day, six days a week, for the financial benefit of church leaders, and charges against the operators of the website “Girls Do Porn,” (U.S. v. Pratt, et al., 19-CR-4488-JLS), who participated in a nationwide scheme that duped and coerced women into making pornography.

“The U.S. Attorney’s Office also routinely works with its state and local partners to provide assistance and justice for survivors and participates in trainings that assist the community in recognizing and stopping human trafficking,” said U.S. Attorney Randy Grossman. “We are grateful to our fantastic Human Trafficking Task Force, and our federal, state, and local partners for sharing this challenging work with us. I am proud of our office’s commitment to holding traffickers accountable, and attempting to provide a better future for victims, and I am proud that we continue to be a leader in this fight.”

Among other things, the Justice Department’s multi-year strategy to combat all forms of human trafficking will:

•           Strengthen engagement, coordination and joint efforts to combat human trafficking by prosecutors in all 94 U.S. Attorneys’ Offices and by federal law enforcement agents nationwide.

•           Establish federally-funded, locally-led anti-human trafficking task forces that support sustained state law enforcement leadership and comprehensive victim assistance.

•           Step up departmental efforts to end forced labor by increasing attention, resources and coordination in labor trafficking investigations and prosecutions.

•           Enhance initiatives to reduce vulnerability of American Indians and Alaska Natives to violent crime, including human trafficking, and to locate missing children.

•           Develop and implement new victim screening protocols to identify potential human trafficking victims during law enforcement operations and encourage victims to share important information.

•           Increase capacity to provide victim-centered assistance to trafficking survivors, including by supporting efforts to deliver financial restoration to victims.

•           Expand dissemination of federal human trafficking training, guidance and expertise.

•           Advance innovative demand-reduction strategies.

The department’s strategy will be implemented under the direction of the National Human Trafficking Coordinator designated by the Attorney General in accordance with the Abolish Human Trafficking Act of 2017.

If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at   1-888-373-7888, or Text 233733.

To read the National Strategy to Combat Human Trafficking click here.

Assistant U. S. Attorney Carling Donovan (619) 546-4343    

NEWS RELEASE SUMMARY – January 28, 2022

SAN DIEGO – Patrick Harrison Hawley was arrested by FBI Special Agents and San Diego Police Department detectives late last night in San Diego on a criminal complaint charging him with one count of Hobbs Act Robbery.

According to the complaint, Hawley is alleged to have robbed the Metro T-Mobile store located at 650 Douglas Drive in Oceanside, California. During that robbery, Hawley allegedly threatened to chop the employee’s head off if she did not comply with his demands for cash and electronic devices. Hawley robbed the store of approximately $300 along with cell phones and other electronic devices valued at approximately $3,500, before fleeing the scene on foot.

Hawley made his initial appearance this afternoon before U.S. Magistrate Judge Allison H. Goddard. He is scheduled to appear for a detention hearing set for February 3 at 10 a.m.

DEFENDANT                                               Case Number 22mj300                                               

Patrick Harrison Hawley                                Age: 34                                   San Diego, CA

SUMMARY OF CHARGES

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

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

AGENCY

Federal Bureau of Investigation

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.

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 – January 26, 2022

SAN DIEGO – U.S. Navy Commander Stephen Shedd pleaded guilty in federal court today to bribery charges, admitting that he and eight other indicted leaders of the U.S. Navy’s Seventh Fleet received more than $250,000 in meals, entertainment, travel and hotel expenses, gifts, cash and the services of prostitutes from foreign defense contractor Leonard Glenn Francis.

Shedd is one of nine members of the Seventh Fleet indicted by a federal grand jury in March 2017 for conspiring with and receiving bribes from Francis, the owner and CEO of Singapore-based Glenn Defense Marine Asia, which provided services for U.S. Navy ships in port, including tugboats; fenders; security; food; fuel; water; trash and waste removal; and transportation.

Shedd is the third of the Seventh Fleet defendants to plead guilty. The trial of the remaining defendants is scheduled to begin on February 28, 2022. The remaining six defendants - who are accused of conspiring to trade military secrets and substantial influence for sex parties with prostitutes and luxurious dinners and travel, among other lavish things of value - include U.S. Navy Rear Admiral Bruce Loveless; Captains David Newland, James Dolan, David Lausman and Donald Hornbeck; and Commander Mario Herrera.

The overarching fraud and bribery investigation has resulted in federal criminal charges against 34 U.S. Navy officials, defense contractors and the GDMA corporation. So far, 28 of those have pleaded guilty, admitting collectively that they accepted millions of dollars in luxury travel and accommodations, meals, lavish gifts, or services of prostitutes, among other things of value, from Francis in exchange for helping GDMA win and maintain contracts and overbill the Navy by over $35 million.

The U.S. Navy’s Seventh Fleet represents a vital piece of the United States military’s projection of power as well as American foreign policy and national security. The largest numbered fleet in the U.S. Navy, the Seventh Fleet is comprised of 60-70 ships, 200-300 aircraft and approximately 40,000 sailors and Marines. The Seventh Fleet is responsible for U.S. Navy ships and subordinate commands that operate in the Western Pacific throughout Southeast Asia, Pacific Islands, Australia, and Russia and the Indian Ocean territories, as well ships and personnel from other U.S. Navy Fleets that enter the Seventh Fleet’s area of responsibility.

According to Shedd’s admissions as set forth in his plea agreement, the defendants informed Francis of planned U.S. Navy ship movements by providing Francis with classified U.S. Navy ship schedules and narrative summaries of those schedules. The defendants provided Francis with internal, proprietary U.S. Navy information. The defendants took official acts and exerted pressure on, advocated before, and provided advice to other U.S. Navy officials, knowing and intending that such advocacy and advice would form the basis for such other officials' decisions to pay GDMA’s claims, overlook inflated invoices, quash bid protests filed by GDMA's competitors, suppress competition in contract awards, and resolve in GDMA’s favor other questions, matters, and controversies regarding GDMA’s husbanding business.

From November 2006 to October 2008, Shedd served as the Seventh Fleet’s South Asia Policy and Planning Officer, where he was, in part, responsible for identifying ports that U.S. Navy ships would visit. From November 2008 to May 2010, Shedd served as a Personnel Distribution Officer stationed in Millington, Tennessee, and thereafter, upon being promoted to Commander, from March 2011 until May 2014, Shedd served as the Executive Officer and later the Commanding Officer of the U.S.S. Milius.

“The defendant has admitted he was one of the many whose allegiance was switched from the Navy to Leonard Francis,” said U.S. Attorney Randy Grossman. “This abdication of the defendant’s duties to the Navy and the United States comes with heavy consequences.”

“Mr. Shedd's disgraceful actions while serving in a sensitive position with the U.S. Navy's 7th Fleet betrayed the standards and expectations of all members of the Armed Forces and jeopardized the Fleet's safety and security,” said Kelly P. Mayo, the Director of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS).  “This lengthy investigation demonstrates that DCIS and our law enforcement partners will continually strive to fortify the integrity of the Department of Defense's procurement systems by doggedly pursuing and rooting-out corruption in the Department.”

“Cmdr. Shedd abused his high-level position in the Navy by illegally accepting lavish gifts from Mr. Francis in exchange for providing Mr. Francis classified ship schedules listing numerous ships, specific ports, and dates for the visits far in advance of ship visits,” said NCIS Director Omar Lopez. “NCIS and our law enforcement partners are committed to rooting out bribery and corruption that wastes valuable U.S. taxpayer money and damages the integrity of the Navy.”

Shedd is scheduled to be sentenced on July 21, 2022 before U.S. District Judge Janis L. Sammartino.

DEFENDANT                                               Case Number: 17-CR-0623-JLS       

Stephen Shedd                                                Age: 48                    Temecula, CA

SUMMARY OF CHARGES

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

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

Bribery of a Public Official, in violation of 18 U.S.C. § 201(b)(2)

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

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Defense Contract Audit Agency

Assistant U. S. Attorney Michelle L. Wasserman (619) 546-8431

NEWS RELEASE SUMMARY – January 26, 2022

SAN DIEGO – Kevin Lee of Chula Vista pleaded guilty in federal court today to using his position at the Defense Contract Management Agency (“DCMA”) to steal the identities of at least 37 individuals and using those identities to commit over $240,000 in bank and loan fraud. 

DCMA is a federal agency responsible for administering contracts for the Department of Defense and other authorized federal agencies. For his former position at DCMA, Lee held a Top Secret, Sensitive Compartmentalized Information (TS-SCI) clearance. Beginning in approximately September 2018 and continuing up to and including September 2020, Lee devised a scheme to defraud various banks and loan companies by using stolen identities to apply for and obtain loans, which he then used to pay personal debts and bills. 

According to his plea agreement, Lee initially used the identities of family members to apply for and obtain fraudulent loans.  In approximately September 2019, Lee began applying for loans and bank accounts using information he had access to as a result of his employment at DCMA.  Specifically, Lee accessed a DCMA Sharepoint site called DCMA 360 that contained personal identifying information belonging to various individuals employed by, or in some way in contact with, DCMA, including Department of Defense employees and contractors. 

The plea agreement said the following:

The information Lee accessed included social security numbers, birth dates, addresses, and various forms relating to government employment. After collecting sufficient personal identifying information on an individual, Lee used that information to apply for bank accounts and loans online.  To do so, Lee created fraudulent identification documents using the stolen information, including driver’s licenses and passports.  Lee additionally created and/or doctored pay stubs, bank statements, and tax documents to support his loan applications.  In order to qualify for more loan money, Lee fraudulently increased the salary reflected on some of the documents.  Lee created false email accounts for some of the stolen identities, and used various Google voice phone numbers to accomplish his fraud.

For example, Lee created a fake Gmail account for a DCMA employee, D.B.  Two months later, on March 26, 2020, Lee conducted six separate searches for personal identifying information belonging to D.B. on the DCMA 360 site.  Between March 26-March 30, 2020, Lee then used D.B.’s name, birthdate, address, and social security number to fraudulently apply for at least eight bank accounts and loans using D.B.’s identity.  Lee created a fake Arizona Driver’s License using D.B.’s name address and birthdate, which he submitted with the fraudulent loan applications.  Lee successfully obtained three loans in D.B.’s name, and used the funds for personal expenses.  In total, Lee stole and used or attempted to use the identities of 37 actual individuals at 16 different financial institutions.  The total amount of Lee’s actual and attempted fraud was $244,513.45.

“Government employees hold positions of public trust,” said U.S. Attorney Randy S. Grossman.  “The identity theft and fraud in this case is particularly egregious because Mr. Lee violated that public trust for his own selfish ends.  Those who engage in fraud and identity theft will be prosecuted to the full extent of the law.”  Grossman thanked the prosecution team as well as Defense Criminal Investigative Service and

Defense Contract Management Agency-Office of Inspector General for their excellent work on this case.

“The theft of personally identifiable information can significantly harm our military service members, civilian employees, and their families,” said Kenneth A. DeChellis, Special Agent in Charge, DoD Office of Inspector General, DCIS - Cyber Field Office.  “This conviction, resulting from the coordinated actions of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Cyber and Western Field Offices, as well as our partner agencies, demonstrates our commitment to swift action against those who attempt to enrich themselves at the expense of our current and prior Department of Defense personnel.

Lee is next scheduled to appear at a sentencing hearing on April 22, 2022, at 9:30 a.m. before Judge Lopez.

SUMMARY OF CHARGES                        Case Number 22CR147-LL

Kevin Lee                                                       Age:41             Chula Vista, CA

Wire Fraud, in violation of Title 18, USC 1343

Maximum Penalty: Twenty years in prison

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

Maximum Penalty: Mandatory two years consecutive to any other term of imprisonment imposed.

INVESTIGATING AGENCIES

Defense Criminal Investigative Service (DCIS)

Defense Contract Management Agency-Office of Inspector General (DCMA-OIG)

Assistant U. S. Attorneys Michelle L. Wasserman (619) 546-8431 and Valerie Chu (619) 546-6750

NEWS RELEASE SUMMARY – January 26, 2022

SAN DIEGO – Rabbi Yehuda Hadjadj, director of Chabad at the University of California, San Diego, pleaded guilty in federal court today to conspiring with former Chabad of Poway Rabbi Yisroel Goldstein and at least three other individuals to defraud Qualcomm’s corporate matching program.

Beginning no later than August 2010 and continuing through late 2017, Hadjadj fraudulently obtained funds from Qualcomm’s corporate matching program for Chabad at UCSD, by inducing at least three donors to make sham donations to Friendship Circle, a non-sectarian organization run at the time by Rabbi Goldstein.  Chabad at UCSD was not eligible to receive corporate matching funds from Qualcomm, as the corporate matching program excluded sectarian or denominational religious groups from its eligible donation recipients.  To conceal the true recipient of the matched funds, Hadjadj told the donors to write checks to Friendship Circle.  At the time, or shortly after the donor wrote the check, Hadjadj returned all or most of the donation in cash.  The donors would nonetheless request that Qualcomm match the sham donation.  After Qualcomm matched the sham donations to Friendship Circle, Rabbi Goldstein funneled approximately two thirds of the matched funds back to Hadjadj, keeping one third for himself.

According to Hadjadj’s plea agreement, on September 26, 2017, a donor wrote a check for $4,900 to Friendship Circle.  Shortly thereafter Hadjadj visited the donor’s home and gave him $4,400 in cash.  The donor nonetheless requested that Qualcomm match the $4,900 sham donation.  In total, Hadjadj met with this donor eleven times to give him cash in exchange for sham matched donations to Friendship Circle.  Hadjadj recruited at least two additional donors to engage in this scheme.  Hadjadj fraudulently obtained approximately $40,000 for Chabad at UCSD over the course of the scheme.   

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

Hadjadj is the tenth individual to plead guilty to crimes discovered in this investigation. Two additional individuals agreed to deferred prosecution agreements as a result of the investigation. 

“Rabbi Hadjadj violated his position of trust within our community and took advantage of a corporate program meant to encourage employee charitable donations,” said U.S. Attorney Randy Grossman. “Fraud has no place in fundraising, and those who use lies and dishonesty to obtain money, whether for themselves or for an organization, will be held to account for their crimes.” Grossman thanked the prosecution team and FBI and IRS agents for their excellent work on this case.

“The defendant abused his status and connections to help facilitate a years-long fraud scheme,” said FBI Special Agent in Charge Suzanne Turner. “The FBI is proud to work with our federal partners at the Internal Revenue Service to root out these schemes which not only defraud the companies who participate in corporate matching programs, but also diminish the public’s trust in the validity of charitable contributions.”

“Rabbi Hadjadj conspired with Rabbi Goldstein to cheat Qualcomm, and even recruited others who trusted him to commit fraud,” said IRS Criminal Investigation, Special Agent in Charge Ryan L. Korner. “IRS Special Agents will do everything in our power to uncover financial deceptions, and we are committed to working with our law enforcement partners to ensure that justice is served against all who choose to place their own greed ahead of the welfare of our businesses and the community.”

Rabbi Hadjadj is next scheduled to appear at a sentencing hearing on April 18, 2022, at 9 a.m. before Judge Cynthia Ann Bashant.

SUMMARY OF CHARGES                        Case Number 22CR148-BAS

Yehuda Hadjadj                                            Age:47             La Jolla, CA

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

Maximum Penalty: Five years in prison

PREVIOUSLY CHARGED DEFENDANTS AND SUMMARY OF CHARGES                     

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

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

Maximum Penalty: Five years in prison

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

Wire Fraud, in violation of Title 18, USC 1343

Maximum Penalty: Twenty years in prison

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

Maximum Penalty: Two years minimum consecutive term in prison

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

Maximum Penalty: Twenty years in prison

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

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

Maximum Penalty: Five years in prison

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

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

Maximum Penalty: Three years in prison

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

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

Maximum Penalty: Three years in prison

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

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

Maximum Penalty: Three years in prison

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

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

Maximum Penalty: Five years in prison

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

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

Maximum Penalty: Three years in prison

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

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

Maximum Penalty: Three years in prison

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

Deferred Prosecution Agreement

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

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

Deferred Prosecution Agreement

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

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Internal Revenue Service

SAN DIEGO – The United States Attorney’s Office today released its Annual Report, which details major cases and achievements of 2021 that took place despite extraordinary challenges to law enforcement and federal court operations in the district due to the ongoing pandemic.

“I am very proud of our significant accomplishments during another year of difficult conditions,” said U.S. Attorney Randy Grossman.  “Because of the excellent work of this office and our law enforcement partners, scores of violent criminals and large quantities of deadly drugs and guns are off the street, not only in this district, but around the world. This report provides a window into a few of the many civil and criminal cases we worked on this year as well as our significant community outreach efforts.”

In 2021, our Criminal Division charged approximately 3,850 felony cases and conducted more than 40 jury trials, all while operating in a maximum telework posture. Likewise, our Civil Division represented the United States and its agencies and employees in civil litigation in the district, managing a heavy caseload involving hundreds of depositions and court appearances, and pursued multiple affirmative enforcement cases.

Here are just a few highlights you will read about in this report:

-  In response to a surge in violent crime in 2021, the U.S. Attorney’s Office and its law enforcement partners launched an effort to strategically prosecute the region’s most violent and prolific offenders who are believed to be most responsible for the spike, including those with criminal history and criminal gang affiliation who commit gun crimes. As a result, federal gun-related prosecutions in the Southern District of California increased in FY 2021 by almost 50 percent – to the highest levels seen in this office.

- The office addressed a disturbing increase in reports of hate crimes motivated by race, ethnicity and ancestry, and gender identity in 2021 on two fronts: Criminal prosecution and community outreach. The most notorious hate crime in recent memory in San Diego County concluded in 2021 with the sentencing of John T. Earnest, a Rancho Penasquitos man who entered the Chabad of Poway on April 27, 2019, opened fire and killed one woman, injured three others, and attempted to kill 50 others. He was sentenced to life plus 30 years in prison for his hate crimes. The office also led several outreach initiatives to educate the public about recognizing and reporting hate crimes, including a webinar in recognition of Asian Americans and Pacific Islanders (AAPI) month. The webinar, titled “Understanding AAPI Discrimination in Our Past and Present to Reclaim our Future,” educated the audience on AAPI hate in America, lessons learned from past hate incidents, and how to actively stop hate toward this community. 

- In 2021, there was a tragic wave of smuggling-related deaths in San Diego and Imperial counties. In less than a three-week span, four lives were lost and dozens of people had to be rescued from rough seas and hospitalized after multiple maritime smuggling events went terribly wrong. The U.S. Attorney’s Office charged a number of people in connection with those deaths and held an important news conference, imploring migrants not to trust their lives to greedy smugglers. Assistant U.S. Attorney Victor White was selected to be the co-chair of Joint Task Force Alpha, a law enforcement group that will marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico and the Northern Triangle countries of Guatemala, El Salvador, and Honduras.

-  Overdose deaths spiked again in San Diego County this year. Although the year-end statistics will not be finalized until early 2022, it is likely that fentanyl overdose deaths will have nearly doubled.  The U.S. Attorney’s Office has continued to actively intake cases in which the distribution of fentanyl and heroin have resulted in death. During 2021, at least eleven defendants were charged with the distribution of fentanyl “resulting in death” which carries with it a 20-year minimum mandatory sentence. Those cases have included charges stemming from the death of a U.S. Marine as well as a California Firefighter.  Significantly, two such cases were tried to verdict during 2021 and both resulted in swift guilty verdicts on the 20-year minimum mandatory charge; in both cases, the defendants will be sentenced in 2022. One of those cases related to a defendant who sold a cocaine/fentanyl mixture that caused the collapse of three individuals in the parking lot of a bar and grill, resulting in one death. In 2021, the office also secured multiple guilty pleas in these cases, including a guilty plea by a defendant who admittedly sold fentanyl that resulted in the death of a high school student knowing the individual was, in fact, a high school student.

- The office also pursued civil cases against doctors who, even in this climate of heightened awareness of the dangers of opioids, continue to overprescribe opioids. San Diego area pain clinic doctor Brenton Wynn, M.D., paid $200,000 to resolve allegations that he illegally prescribed opioids and other dangerous drugs to his patients.  The civil settlement stems from the United States’ continued efforts to combat the opioid epidemic on all fronts, including this investigation of whether Dr. Wynn illegally prescribed opioids to his patients in violation of the Controlled Substances Act.

Also in 2021, the office prosecuted cases with worldwide impact – from Chinese hackers to corrupt Navy officials to criminal syndicates around the globe who used encrypted devices to go under the radar of law enforcement. The 500-plus arrests that took place during a worldwide two-day takedown in June were possible because of this unprecedented San Diego-based investigation. For the first time, the FBI operated its own encrypted device company, called “ANOM.” During the course of the investigation, while ANOM’s criminal users unknowingly promoted and communicated on a system operated by the FBI, agents catalogued more than 27 million messages between users around the world who had their criminal discussions reviewed, recorded, and translated by the FBI, until the platform was taken down. “It has been my pleasure to lead such a talented and dedicated group of professionals,” Grossman said. “I want to applaud all the lawyers and staff in our office, as well as our law enforcement partners, who continue to protect and achieve justice for our community. All of us in law enforcement are committed to maintaining public safety as we move forward and the pandemic hopefully becomes a distant memory.”

SAN DIEGO – San Diego’s Balboa Pharmacy has paid $105,000 to resolve allegations that it illegally dispensed opioids and other dangerous drugs to its patients, according to a settlement agreement signed by Balboa Pharmacy and the United States. The settlement stems from the United States’ continued efforts to combat the opioid epidemic on all fronts, including this investigation of whether Balboa Pharmacy illegally dispensed opioids to its patients in violation of the federal Controlled Substances Act.

The Controlled Substances Act states that pharmacists have a responsibility to only fill prescriptions that are written for a legitimate medical purpose while acting in the usual course of professional practice. The United States alleged that Balboa Pharmacy failed to meet its responsibility when it filled opioid prescriptions without resolving—or often even attempting to resolve—“red flags” that the prescriptions raised. “Red flags” are indications that a prescription may be invalid. According to the settlement agreement, Balboa Pharmacy filled prescriptions without resolving the following commonly known red flags:

• large quantities of opioids well above guidelines for treating patients, which sometimes exceeded a daily Morphine Milligram Equivalent of 100;
• dangerous combinations of drugs, including duplicative therapy; opioids and benzodiazepines (e.g., Valium, Xanax); and opioids, benzodiazepines, and muscle relaxants (e.g., Soma), a combination that is colloquially referred to by drug abusers as the “trinity” because of the rapid euphoric effects of this combination of drugs;
• patients who received prescriptions from multiple prescribers, which sometimes were for the same types of controlled substances or for dangerous combinations of drugs; and
• filling prescriptions for patients early, which includes filling a patient’s prescription before the patient’s earlier prescription for the same drug ran out.

The investigation exemplifies the Department of Justice’s willingness to investigate pharmacies that may be filling dangerous prescriptions without first confirming the legitimacy of each prescription. Public health experts have long warned health care providers that overdose risk is elevated in patients receiving medically prescribed opioids, particularly those receiving high dosages. Pharmacists should carefully track the potency of opioids dispensed to patients by noting the Morphine Milligram Equivalent (MME, also commonly referred to as Morphine Equivalent Dose or MED) of prescribed opioids. Among other things, tracking MMEs advances better practices for pain management by reinforcing the need to consider alternatives to using high-dosage opioids to treat pain, and to appropriately justify decisions to use opioids at dosages that place patients at high risk of addiction, abuse, and overdose. Furthermore, dispensing high dosages increases the risk that patients will divert opioids.

“Pharmacies are the last line of defense protecting the public from addictive opioids and other controlled substances,” said U.S. Attorney Randy S. Grossman. “This office will pursue pharmacists who carelessly disregard red flags, opting instead to rubberstamp questionable prescriptions. We will continue to use all available tools to combat the serious opioid epidemic.” Grossman thanked the prosecution team and investigators for their excellent work on this case.

In addition to the settlement agreement, the DEA and Balboa Pharmacy entered into a Memorandum of Agreement in October 2021 in which Balboa Pharmacy agreed to, among other things, develop policies and procedures and training that address the identification and resolution of “red flags.”

“This investigation is a reminder that all pharmacies have a responsibility to ensure that prescriptions are issued for a legitimate medical purpose,” said DEA Special Agent in Charge Shelly S. Howe.  “Failure to do so allows prescriptions to become subject to abuse and diversion, fueling the ongoing opioid epidemic.  DEA will continue to hold pharmacies, such as Balboa Pharmacy, accountable.”

To report a tip directly to a DEA representative regarding medical personnel writing suspicious opioid prescriptions and pharmacies dispensing large amounts of opioids, call (571) 324-6499, or visit the DEA’s website (https://www.deadiversion.usdoj.gov/) and click on “Report Illicit Pharmaceutical Activities.”

Assistant U.S. Attorney Dylan M. Aste of the U.S. Attorney’s Office for the Southern District of California handled this matter along with DEA investigators.

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

 

SAN DIEGO – Anibal Navarro, a former corrections officer at Richard J. Donovan Correctional Facility, was sentenced in federal court today to 37 months in prison for smuggling methamphetamine, heroin, marijuana and cell phones into state prison.

Navarro pleaded guilty, admitting that he was part of a network of 12 individuals both inside and outside the prison that smuggled in contraband and illegal narcotics. All the other defendants have pleaded guilty and been sentenced (case number 17cr446-AJB).

One of Navarro’s co-conspirators, prison inmate Martin Gomez, organized and directed the other participants, including Navarro, from his cell in California state prisons in San Diego and Los Angeles. Gomez arranged for individuals outside of prison to smuggle contraband into Donovan prison and deliver drugs and cell phones to various inmates through Navarro. Gomez directed those inmates to receive the contraband and deliver it to still other inmates within the prison.

Gomez approached Navarro while Gomez was an inmate at Donovan, offering him an avenue to make extra money that Gomez knew Navarro needed. Navarro was paid between $1,000 and $2,000 each time he smuggled contraband into the prison. Gomez continued to lead the conspiracy for over two years, even after he was transferred out of Donovan to another prison. Over 500 grams of methamphetamine, heroin, cell phones, and other contraband were smuggled into Donovan through Navarro at Gomez’s direction while he was incarcerated elsewhere.

The smuggled phones were used to coordinate criminal activity both inside and outside Donovan.

“Corrections Officers are charged with the responsibility of keeping the public, inmates, and other prison staff safe,” said U.S. Attorney Randy Grossman. “Former Officer Navarro personally profited from creating a dangerous environment in the prison by smuggling in extremely harmful and addictive narcotics. Additionally, cell phones inside a prison allow inmates to coordinate other illegal acts, like smuggling drugs, fraud, and even violence.  Today’s sentence demonstrates that the significant consequences far outweigh any financial gain for those who abuse their positions of trust.” Grossman thanked the prosecution team, the FBI, the California Department of Corrections and Rehabilitation’s Office of Internal Affairs, the California Department of Corrections and Rehabilitation’s Investigative Service Unit and the United States Postal Service – Inspector Service, for their excellent work on this case.

“Anibal Navarro abused his position and betrayed his oath as a Corrections Officer to further a conspiracy which included smuggling dangerous drugs and cell phones into our state prison system, allowing inmates to continue their criminal enterprise even while incarcerated,” said FBI Special Agent in Charge Suzanne Turner. “Today’s sentence hopefully sends a message to any government employee considering using their position of authority to further their own interests and enrich themselves – the FBI will continue to work diligently to root out public corruption at all levels.”

The FBI encourages the public to report allegations of public corruption to our hotline at (877) NO-BRIBE (662-7423).

DEFENDANT                                                           Case No. 16cr1664

Anibal Navarro                                                           Age 43             Chula Vista, California

SUMMARY OF CHARGES

Conspiracy to Distribute Illegal Narcotics – Title 21, U.S.C., Sections 841(a) and 846;

Bribery Concerning Programs Receiving Federal Funds – Title 18, U.S.C., Section 666

Maximum penalty: Life in prison and $20 million fine

AGENCY

Federal Bureau of Investigation – San Diego Field Office

California Department of Corrections and Rehabilitation’s Office of Internal Affairs

California Department of Corrections and Rehabilitation’s Investigative Service Unit

United States Postal Service – Inspector Service

Assistant U. S. Attorneys Joseph Price (619) 546-7642 and Joseph Purcell (619) 546-7643    

NEWS RELEASE SUMMARY – January 11, 2022

SAN DIEGO – UC San Diego Health, the academic health system of the University of California, San Diego, has paid $2.98 million to resolve allegations that it violated the False Claims Act by ordering medically unnecessary genetic testing reimbursed by Medicare, the Justice Department announced today. 

The settlement resolves allegations that, from December 2015 to October 2019, UC San Diego Health ordered and submitted referrals for medically unnecessary genetic testing performed by CQuentia Arkansas Labs, CQuentia NGS, and Total Diagnostic II (collectively “the CQuentia labs”). The government alleged that this conduct led to the submission of false claims for payment to Medicare for unnecessary genetic testing.

“Ordering unnecessary genetic tests creates a drain on vital government-funded health care programs like Medicare,” said U.S. Attorney Randy Grossman. “This settlement is another example of this office’s commitment to work with our law enforcement partners to hold medical providers accountable when their conduct leads to taxpayers bearing the cost of improper billing practices.” Grossman thanked the prosecution team and investigators for their excellent work on this case.

“Hospitals are the gatekeepers for medical care and are expected to ensure that all services performed at their direction, including genetic tests, are medically appropriate,” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division. “The department will continue to pursue those who undermine the integrity of federal health care programs and waste taxpayer dollars.”

“This resolution demonstrates the FBI’s commitment to pursuing those who abuse our health care system,” said FBI Special Agent in Charge Suzanne Turner. “False claims diminish trust in our health care while generating enormous unnecessary costs and the FBI is proud to work alongside our federal partners to disrupt such schemes.”

The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Southern District of California, with assistance from the U.S. Department of Health & Human Services Office of Inspector General and the FBI.

The government’s pursuit of this matter illustrates its 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 Nicholas C. Perros of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorneys Joseph Price and Joseph Purcell of the U.S. Attorney’s Office for the Southern District of California.

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

UC San Diego Health, the academic health system of the University of California, San Diego, has paid $2.98 million to resolve allegations that it violated the False Claims Act by ordering medically unnecessary genetic testing reimbursed by Medicare. 

The settlement resolves allegations that, from December 2015 to October 2019, UC San Diego Health ordered and submitted referrals for medically unnecessary genetic testing performed by CQuentia Arkansas Labs, CQuentia NGS and Total Diagnostic II (collectively “the CQuentia labs”). The government alleged that this conduct led to the submission of false claims for payment to Medicare for these tests.

“Hospitals are the gatekeepers for medical care and are expected to ensure that all services performed at their direction, including genetic tests, are medically appropriate,” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division. “The department will continue to pursue those who undermine the integrity of federal health care programs and waste taxpayer dollars.”

“Ordering unnecessary genetic tests creates a drain on vital government-funded health care programs like Medicare,” said U.S. Attorney Randy Grossman for the Southern District of California. “This settlement is another example of this office’s commitment to work with our law enforcement partners to hold medical providers accountable when their conduct leads to taxpayers bearing the cost of improper billing practices.”

“This resolution demonstrates the FBI’s commitment to pursuing those who abuse our health care system,” said Special Agent in Charge Suzanne Turner of the FBI San Diego Field Office. “False claims diminish trust in our health care while generating enormous unnecessary costs, and the FBI is proud to work alongside our federal partners to disrupt such schemes.”

The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Southern District of California, with assistance from the U.S. Department of Health & Human Services Office of Inspector General and the FBI.

The government’s pursuit of this matter illustrates its 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 Trial Attorney Nicholas C. Perros of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorneys Joseph Price and Joseph Purcell of the U.S. Attorney’s Office for the Southern District of California.

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

A drug trafficker and money launderer for the Sinaloa Cartel was sentenced yesterday to 188 months in prison for supervising the smuggling of multi-kilogram quantities of cocaine, methamphetamine, and heroin from Mexico into the United States and the smuggling of drug proceeds from the United States to Mexico.  

Roberto Gallegos-Lechuga, 39, of Sinaloa, Mexico, was extradited from Mexico to the United States in March 2020. In July 2021, he pleaded guilty to conspiracy to commit international money laundering. According to court documents, Gallegos-Lechuga coordinated the smuggling of large quantities of illegal narcotics through ports of entry in Southern California. Gallegos-Lechuga also supervised and managed couriers who smuggled hundreds of thousands of dollars in cash at a time, from the illegal sale of drugs, from the United States to Mexico as part of the cartel’s ongoing efforts to promote drug trafficking.

“This defendant was part of a violent transnational criminal organization that posed a danger to our communities,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “We will prosecute to the fullest extent of the law those who export dangerous narcotics to the United States and finance those activities through money laundering. I want to thank the Government of Mexico for extraditing Gallegos-Lechuga to the United States. Through such partnerships, we will continue to work to dismantle dangerous drug cartels.”

“Those who manage drug trafficking and money laundering efforts for the Sinaloa cartel, one of the most violent criminal organization in the world, will continue to face justice in this district,” said U.S. Attorney Randy Grossman for the Southern District of California. “Stopping the flow of funds to drug cartels and of deadly drugs into the United States continues to be a priority for us and our law enforcement partners.”

“This sentencing is the culmination of years of relentless work by Homeland Security Investigations (HSI) and its partners targeting the Sinaloa Cartel,” said Special Agent in Charge Chad Plantz of HSI San Diego. “This investigation highlights HSI’s dedication to go after both cartel drug trafficking and money laundering activity. The sentencing sends a resounding message to Transnational Criminal Organizations that HSI and our partners are unyielding in our pursuit of justice.”

Seven other defendants have previously pleaded guilty in the case and been sentenced: Omar Ayon-Diaz, Osvaldo Contreras-Arriaga, Cesar Hernandez-Martinez, Gibran Rodriguez-Mejia, Oscar Rodriguez-Guevara, Bianca Acedo Ojeda, and Joel Acedo Ojeda. In addition, approximately 20 other individuals linked to the scheme who served as drug and money couriers and drug stash house operators have entered guilty pleas and been sentenced in related cases.       

The investigation was conducted by HSI. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest of Gallegos-Lechuga in Mexico and his extradition to the United States.

The case is being prosecuted by Senior Trial Counsel Mark Irish of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Larry Casper of the U.S. Attorney’s Office for the Southern District of California.

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

NEWS RELEASE SUMMARY – January 11, 2022

SAN DIEGO – Roberto Gallegos-Lechuga, a drug trafficker and money launderer for the Sinaloa Cartel, was sentenced in federal court yesterday to 188 months in prison for supervising the smuggling of multi-kilogram quantities of cocaine, methamphetamine and heroin from Mexico into the United States and the smuggling of drug proceeds from the United States to Mexico.  

Gallegos-Lechuga, 39, of Sinaloa, Mexico, was extradited from Mexico to San Diego in March of 2020. In July 2021, he pleaded guilty to conspiracy to commit international money laundering. According to court documents, Gallegos-Lechuga coordinated the smuggling of large quantities of illegal narcotics through ports of entry in Southern California. Gallegos-Lechuga also supervised and managed couriers who smuggled hundreds of thousands of dollars in cash at a time, from the illegal sale of drugs, from the United States to Mexico as part of the cartel’s ongoing efforts to promote drug trafficking.

“Those who manage drug trafficking and money laundering efforts for the Sinaloa cartel, one of the most violent criminal organizations in the world, will continue to face justice in this district,” said U.S. Attorney Randy Grossman for the Southern District of California. “Stopping the flow of funds to drug cartels and of deadly drugs into the United States continues to be a priority for us and our law enforcement partners.”  Grossman also thanked prosecutor Larry Casper and HSI agents for their excellent work on this case.

“This defendant was part of a violent transnational criminal organization that posed a danger to our communities,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “We will prosecute to the fullest extent of the law those who export dangerous narcotics to the United States and finance those activities through money laundering. I want to thank the Government of Mexico for extraditing Gallegos-Lechuga to the United States. Through such partnerships, we will continue to work to dismantle dangerous drug cartels.”

“Today’s sentencing is the culmination of years of relentless work by Homeland Security Investigations (HSI) and its partners targeting the Sinaloa Cartel,” said HSI San Diego Special Agent in Charge Chad Plantz.  “This investigation highlights HSI’s dedication to go after both Cartel drug trafficking and money laundering activity.  The sentencing sends a resounding message to Transnational Criminal Organizations that HSI and our partners are unyielding in our pursuit of justice.”

Seven other defendants have previously pleaded guilty in this case and been sentenced, including Omar Ayon-Diaz, Osvaldo Contreras-Arriaga, Cesar Hernandez-Martinez, Gibran Rodriguez-Mejia, Oscar Rodriguez-Guevara, Bianca Acedo Ojeda and Joel Acedo Ojeda. In addition, approximately 20 other individuals linked to the conspiracy who served as drug and money couriers and drug stash house operators have entered guilty pleas and been sentenced in related cases.           

The investigation was conducted by Homeland Security Investigations. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest of Gallegos-Lechuga in Mexico and his extradition to the United States.

The case is being prosecuted by Assistant U.S. Attorney Larry Casper of the U.S. Attorney’s Office for the Southern District of California and Senior Trial Counsel Mark Irish of the Criminal Division’s Money Laundering and Asset Recovery Section.

DEFENDANT                                               Case Number 15cr950-BEN                                       

Roberto Gallegos-Lechuga                             Age: 39                       Sinaloa, Mexico

SUMMARY OF CHARGES

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

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

AGENCY

Homeland Security Investigations

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

NEWS RELEASE SUMMARY – January 10, 2022

SAN DIEGO – Derick Jonathan Cameron of Vancouver, Washington, was sentenced in federal court today to 20 months in prison for embezzling more than $400,000 when he was employed as the Financial Controller for San Diego-based RAL Investment Corporation. 

Cameron previously pleaded guilty, admitting that he abused his access to the company’s accounting software by issuing more than 200 unauthorized checks to himself using the electronic signature of the company’s CFO and depositing them into his personal bank account. He then concealed the payments by manipulating the company’s accounting records to make it appear that each check was issued to a legitimate third-party vendor for a business expense.  The company discovered Cameron’s fraudulent activity in April 2018, fired Cameron, and reported the conduct to law enforcement when Cameron was unable to make his promised repayments on schedule.

In addition to the 20 months of federal custody, U.S. District Judge Todd W. Robinson imposed three years’ supervised release, an $8,000 fine and ordered Cameron to pay restitution of $203,857 to the victim, RAL Investment Corporation, which is the difference between the amount Cameron embezzled ($403,857) and the amount he repaid his former employer in 2018 ($200,000) after his theft was detected. The Court specifically ordered Cameron to repay $10,000 by March 12, 2022, suggesting Cameron could sell a recently purchased motorcycle to pay the debt.

“The impact of fraud on small businesses can be devastating,” said U.S. Attorney Randy Grossman. “This defendant abused his position of trust to enrich himself, and he has been held to account for his crime.” Grossman thanked the prosecution team and the FBI for the excellent work on this case.

“The FBI will continue to vigorously pursue those who use their workplace access for personal and financial gain over professional responsibility,” said FBI Special Agent in Charge Suzanne Turner. “Mr. Cameron’s check-writing scheme hurt this small, family-owned business, endangered its livelihood, and impacted its employees. Today, Mr. Cameron faced judgement for those criminal actions.” 

Cameron is scheduled to surrender to the Bureau of Prisons on or before March 14, 2022.

DEFENDANTS                                             Case Number 21cr2128-TWR                          

Derick Jonathan Cameron                                          Age: 38                       Vancouver, Washington

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. Attorneys Valerie H. Chu (619) 546-6750 and Michelle L. Wasserman (619) 546-8314

NEWS RELEASE SUMMARY – January 4, 2022

SAN DIEGO – Rabbi Yisroel Goldstein, former director at Chabad of Poway, was sentenced in federal court today to fourteen months in custody for his years-long, multi-million-dollar schemes to defraud the Internal Revenue Service, several San Diego Fortune 500 companies, and multiple public and private agencies.  He was also ordered to pay restitution totaling $2,834,608.

According to his plea agreement, while Rabbi Goldstein was director of the Poway synagogue, he received at least $6.2 million in phony contributions to the Chabad and affiliated charities and secretly refunded up to 90 percent of the donations to the “donors.” After Rabbi Goldstein provided these donors with fake receipts, they illegally claimed huge tax deductions for these nonexistent donations, and the rabbi kept about 10 percent – more than half a million dollars over the course of the fraud - for himself. Tax losses to the IRS were more than $1.5 million.

Rabbi Goldstein also admitted that he defrauded three different Fortune 500 companies by tricking them into matching supposed charitable donations of their employees.  Working with the employees, Rabbi Goldstein fabricated receipts and then secretly returned their fake “donations.”  This allowed the employees to claim tax deductions for the completely fabricated donations, and allowed Rabbi Goldstein to collect the companies’ matching funds—including some that matched double their employees’ donations. Rabbi Goldstein helped to orchestrate this scheme with at least six taxpayer-employees and two other associates who helped recruit new donors or conceal the true recipient of the funds.  In total, Rabbi Goldstein defrauded the companies out of at least $144,000, and helped the taxpayer-employees to claim nearly as much in fictitious tax-deductible charitable contributions to the IRS.

Rabbi Goldstein admitted that he also helped his brother Mendel Goldstein conceal approximately $700,000 in income by allowing him to use Chabad bank accounts to deposit his income, thereby hiding it from the IRS.  As his cut, Rabbi Goldstein kept 10 percent of this individual’s income—more than $70,000. 

Separate and apart from the tax evasion scheme, Rabbi Goldstein and another defendant, Alexander Avergoon, used false information and fabricated invoices and other records to pretend to be eligible for emergency funds, grants or donations, and private loans. These frauds on the Federal Emergency Management Agency (FEMA), the California Governor’s Office of Emergency Services (Cal OES), and private foundations resulted in losses to these programs of at least $860,000. 

According to sentencing documents, the United States Attorney’s Office recommended departures from the sentencing guidelines for Goldstein because of his cooperation against other individuals, and because of the extraordinary events he suffered as a victim of the April 27, 2019 shooting at the Chabad of Poway. 

In imposing sentence, U.S. District Judge Cynthia A. Bashant commented, “You dragged down so many congregants.  Many of those individuals thought that they were committing these offenses to benefit the Chabad or the synagogue in general, when in fact it was to benefit you.  I just can’t ignore that. … I think time in custody is important.  It’s important to send a message to the community, and it’s important to send a message to you.” 

“Yisroel Goldstein exploited his position and stature as a faith leader to commit well-planned and carefully executed crimes of greed,” said U.S. Attorney Randy Grossman. “As his serious criminal conduct was under investigation, the rabbi became a victim in a devastating attack on the synagogue he led.  Today’s sentence accounts for these extraordinary circumstances and our office’s mission to always seek justice.” Grossman thanked the prosecution team, the FBI and the IRS for their excellent work on this case.

“The defendant used the Chabad of Poway’s tax-exempt status as a religious organization to compile millions of dollars in fraudulent ‘donations’,” said FBI Special Agent in Charge Suzanne Turner. “This scheme enabled Rabbi Goldstein to line his own pockets; reward his fake ‘donors’ with reimbursement for their contributions; and provided receipts enabling the ‘donations’ to be written off as charitable contributions, all in furtherance of the scheme. The FBI will continue to root out fraud disguised as charitable donations which ultimately hurts those organizations relying on the generosity of donors.”

“Rabbi Goldstein veiled over $2.8 million in fraud schemes he perpetrated with at least ten other co-conspirators by exploiting the non-profit statuses of the Chabad of Poway and the Friendship Circle of San Diego, organizations entrusted to him to serve the community,” said Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation's Los Angeles Field Office.  “IRS Special Agents were proud to work alongside the FBI and the U.S. Attorney's Office in this multimillion-dollar tax and grant fraud investigation that uncovered decades of illegal conduct.  In addition to holding Rabbi Goldstein accountable for cheating U.S. taxpayers and businesses for personal gain, my fervent hope is that today's sentencing brings closure and healing to all who were affected by his crimes.”

Rabbi Goldstein was ordered to surrender into federal custody by noon on February 23, 2022. 

DEFENDANT                                   Case Number 20CR1916-BAS              

Yisroel Goldstein                                Age: 60                       Poway

SUMMARY OF CHARGES          

Conspiracy to Defraud the United States and Commit Wire Fraud, in violation of Title 18, USC 371
Maximum Penalty: Five years in prison

INVESTIGATING AGENCIES:

Federal Bureau of Investigation

Internal Revenue Service – Criminal Investigation