Southern District of California

Kelly Thornton (619) 546-9726

NEWS RELEASE SUMMARY – December 13, 2019

SAN DIEGO – The Justice Department’s Office of Justice Programs today announced awards of more than $333 million to help communities affected by the opioid crisis, including $750,000 to Alpine-based Southern Indian Health Council, Inc. The grants are intended to help public safety and public health professionals combat substance abuse and respond effectively to overdoses.

OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan made the announcement during a visit with local, state and federal officials in West Virginia, one of the states hardest hit by the epidemic.

“The opioid crisis has destroyed far too many lives and left too many Americans feeling helpless and hopeless,” said PDAAG Sullivan. “This epidemic—the most deadly in our nation’s history—is introducing new dangers and loading public health responsibilities onto the public safety duties of our law enforcement officers. The Department of Justice is here to support them during this unprecedented and extremely challenging time.”

With more than 130 people dying from opioid-related overdoses every day, the Department of Justice has made fighting addiction to opioids—including heroin and fentanyl—a national priority. The Trump Administration is providing critical funding for a wide range of activities—from preventive services and comprehensive treatment to recovery assistance, forensic science services and research—to help save lives and break the cycle of addiction and crime.

“This crisis demands all the attention and resources we can muster, and these grants will bolster our efforts significantly,” said U.S. Attorney Robert Brewer. “Opioids – and fentanyl in particular – are destroying lives and communities and we are working hard to stop the devastation through interdiction, prosecution and education.”

The awards announced today support an array of activities designed to reduce the harm inflicted by these dangerous drugs. Grants will help law enforcement officers, emergency responders and treatment professionals coordinate their response to overdoses. Funds will also provide services for children and youth affected by the crisis and will support the nationwide network of drug and treatment courts. Other awards will address prescription drug abuse, expand the capacity of forensic labs and support opioid-related research.

Information about the programs and awards announced today is available here. For more information about OJP awards, visit the OJP Awards Data webpage.

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

 

 

Assistant U. S. Attorney Christopher P. Tenorio (619) 546-8413    

NEWS RELEASE SUMMARY – December 12, 2019

SAN DIEGO – Cindy Mydung Luu and Jason Luu, siblings who own two Rancho Bernardo nail salons, were arraigned in federal court late today following their indictment by a federal grand jury on charges they were part of a forced labor conspiracy.

The brother and sister were arrested this morning at their home in Tierrasanta by members of the San Diego Human Trafficking Task Force. According to the indictment, they lured the victim – their second cousin - from Vietnam to San Diego to work long hours in their salons, Eden Nails Lounge & Spa (“Eden”) and Majestic Nail Salon (“Majestic).

The U.S. Department of Labor’s Wage and Hour Division also investigated the defendants’ nail salon for minimum wage and overtime violations, according to Wage and Hour District Director Rodolfo Cortez.

“We are very grateful that this matter came to the attention of the Human Trafficking Task Force upon the suggestion and support of two caring and vigilant nail salon customers who had befriended the victim,” said U.S. Attorney Robert Brewer. “With their assistance, Task Force officers were able to assist the victim immediately and to investigate these alleged crimes.”

“There’s never an excuse for coercing someone into forced labor,” said California Attorney General Xavier Becerra on behalf of the San Diego Human Trafficking Task Force. “We are all proud of the work done by our team and task force partners that led to this indictment.”

The indictment alleges the defendants recruited the victim to travel to San Diego from Vietnam in 2014 on a student visa. Beginning in September 2014, the victim was held at a home owned by the defendants and began working at Majestic. She worked at Majestic until February 2018, and then at Eden until June 2019.

Although the victim initially attended Grossmont College, she left in the spring of 2016 and was married to Jason Luu, her second-cousin, who petitioned for a visa for the victim as his spouse. Jason Luu is also charged with Visa Fraud for falsely swearing on the visa application in 2015 that the victim had lived with him as his spouse, and that she intended to continue living with him.  As the indictment alleges, the victim was actually residing at a separate residence owned by the defendants.

To maintain the victim’s labor, the defendants allegedly engaged in a scheme intended to cause the victim to believe she would suffer financial and reputational harm if she did not continue working. The defendants are also charged with benefitting financially from their forced labor and peonage venture, which required that the victim’s work proceeds be used to pay outstanding debts, both imaginary and real.

The United States is also seeking the forfeiture of property used to facilitate the crimes, and property involved in the offense, plus at least $300,000.

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

The defendants were arraigned on the indictment today before U.S. Magistrate Judge Karen S. Crawford. Bond was set at $30,000 secured by real property for each defendant.

They are scheduled to appear before U.S. District Court Judge Jeffrey T. Miller on January 17, 2020 at 11 a.m. for a motion hearing and trial setting.

DEFENDANTS                                            Case Number 19CR4970-JM                                  

Cindy Mydung Luu                                        Age: 53                                   San Diego, CA

Jason Luu                                                        Age: 44                                   San Diego, CA

SUMMARY OF CHARGES

Forced Labor Conspiracy – Title 18, U.S.C., Section 1594

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

Peonage – Title 18, U.S.C., Section 1581

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

Forced Labor – Title 18, U.S.C., Section 1589

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

Document Servitude – Title 18, U.S.C., Section 1592

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

Benefitting Financially from Peonage – Title 18, U.S.C., Section 1593A

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

Visa Fraud/False Swearing in Immigration Matter – Title 18, U.S.C., Section 1546(a)

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

AGENCIES

Homeland Security Investigations

Internal Revenue Service, Criminal Investigations

San Diego County Sheriff’s Department

U.S. Department of Labor, Wage and Hour Division

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

 

NEWS RELEASE SUMMARY – December 11, 2019

SAN DIEGO – This morning, Ahmad Yusuf Nuristani pleaded guilty in federal court to Theft of Public Money, admitting that he received over $100,000 in government benefits by concealing foreign travel and residency between July 2015 and December 2018. 

During a hearing before U.S. Magistrate Judge Karen S. Crawford, Nuristani admitted that he applied for Supplemental Security Income (SSI) from the Social Security Administration in July 2015.  Nuristani acknowledged that he knew an SSI recipient must reside within the United States, and that he was required to report any travel outside of the United States lasting more than thirty days.  Nuristani admitted to concealing and repeatedly lying to the Social Security Administration about his foreign travel and residency, and to receiving $27,492.44 in SSI payments and to causing a loss of $73,090.34 to the State of California for health care payments and services as a result of his fraud. 

Nuristani, 71, is a former Fulbright Scholar and has been a prominent politician in Afghanistan for many decades.  He has previously served as the governor of Herat province, and was the chairman of the Independent Election Commission of Afghanistan during their last presidential election.  In September 2018, President Ashraf Ghani appointed Nuristani to the Meshrano Jirga, the upper body of parliament in Afghanistan.  Nuristani served as both the head of Afghanistan’s Independent Election Commission and as an Afghan senator even as he received SSI at his claimed address in El Cajon, California. 

This case was brought through the Travel and Residency Enforcement Co-Op (TREC), a pilot project of the Social Security Administration, its Office of Inspector General, the California Department of Health Care Services Investigations Division, and the United States Attorney’s Office for the Southern District of California.  TREC is designed to detect and prevent misuse of the SSI program, a needs-based program administered by the Social Security Administration and designed to provide a floor of income for the aged, blind or disabled who have little or no income and resources.  An individual approved to receive SSI automatically becomes eligible to receive Medi-Cal health benefits from the State of California.  Since its formation in 2017, TREC has resulted in 25 federal convictions of individuals who fraudulently concealed foreign travel, foreign residency, and foreign financial resources from the Social Security Administration.  To date, TREC has obtained over $2 million in court-ordered restitution to state and federal agencies, and has resulted in a savings of millions more. 

Criminal investigators with the Special Inspector General for Afghanistan Reconstruction (SIGAR) also assisted with this investigation.

“I am proud of the work of this office, especially AUSA Jeffrey Hill, and our law enforcement partners for stopping this decades-long fraud, and ending the exploitation of government programs intended to help our country’s most vulnerable,” said United States Attorney Robert S. Brewer, Jr.  “Those who abuse the trust of the taxpayer will be brought to justice.”

“Supplemental Security Income provides a lifeline for the elderly and disabled residing within the United States.  The Social Security Administration’s Office of the Inspector General and its TREC partners vigorously investigate allegations of foreign travel and residency fraud, and prosecute those who steal from the American taxpayer.  My office is pleased to see charges brought in this case, and appreciate that the U.S. Attorney’s Office shares our determination to protect the integrity of this vital income security program,” said Robb Stickley, Special Agent in Charge of the Inspector General’s Office of Investigations in San Francisco.

As a part of his plea agreement, Nuristani has agreed to make full restitution to the Social Security Administration and the California Department of Health Care Services.  He faces up to 10 years in federal prison and a fine of up to $250,000 at his sentencing before the Hon. Cynthia A. Bashant on March 9, 2020. 

DEFENDANT                                    Case Number 19-cr-4967-BAS         

Ahmad Yusuf Nuristani                     El Cajon, California.

SUMMARY OF CHARGES

Theft of Public Property – Title 18, U.S.C., Section 641

Maximum penalty: 10 years’ imprisonment, $250,000 fine, restitution

AGENCIES

Social Security Administration Office of Inspector General

California Department of Health Care Services Investigations Division

Special Inspector General for Afghanistan Reconstruction (SIGAR)

Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924

NEWS RELEASE SUMMARY – December 9, 2019

SAN DIEGO – Almamy Baba Ly was sentenced in federal court this morning to 30 months in prison for misusing the identity of a deceased American citizen for 31 years in order to obtain identification documents and thousands of dollars in federal, state and local government benefits.

U.S. District Judge Anthony J. Battaglia also ordered Ly, 63, to pay restitution of $88,551 to the U.S. Department of Education and the County of San Diego. Ly will likely be deported at the conclusion of his prison sentence.

Ly pleaded guilty on September 12, 2019, admitting that he assumed the identity of Lyle Lindsey in 1988.  Lindsey, a native San Diegan and the son of a military veteran, died in a tragic automobile accident as a toddler in 1957.  Ly admitted that he actually was born in Senegal in 1955, that he lacked any legal status in the United States, and that in 1988 he used an altered copy of Lindsey’s birth certificate to apply for a Social Security number and a California Identification Card and Driver’s License. Ly thereafter committed many crimes, including drug sales and robbery, and went to prison under Lyle Lindsey’s identity on multiple occasions. Ly also admitted that he used Lindsey’s identity to apply for and receive federal student loans and Pell Grants, and CalFresh/Supplemental Nutrition Assistance Program benefits that he was not legally entitled to receive. 

“I commend the work of Special Assistant U.S. Attorney Jeffrey Hill and our law enforcement partners in stopping this decades-long fraud and bringing to justice a man who exploited the identity of an American citizen,” said United States Attorney Robert Brewer. “This prison sentence sends a message to those who commit fraud and identity theft: There will be consequences, and your crimes will not go unpunished.”

On behalf of the United States Border Patrol, San Diego Deputy Chief Patrol Agent Aaron M. Heitke said: “I am proud of the hard work and tenacity that has led to the conviction and now sentencing of this man, who has broken U.S. laws for over 30 years.”

In July 2019, U.S. Border Patrol agents served a search warrant and arrested Ly at his residence in La Mesa, California.  During the search, agents seized a recently-issued Senegalese national identification card that revealed Ly’s true name and date of birth.  The arrest and search warrant were the culmination of a lengthy investigation by the Border Patrol, with the assistance of the California Department of Motor Vehicles, the Department of State, and the United States Embassy and Homeland Security Investigations in Dakar, Senegal.  

DEFENDANT                       Case Number 19-cr-2864-AJB          

Almamy Baba Ly                   La Mesa, California.

SUMMARY OF CHARGES

Unlawful Production of an Identification Document – Title 18, U.S.C., Section 1028(a)(1)

Theft of Public Property – Title 18, U.S.C., Section 641

AGENCIES

United States Border Patrol – Sector Intelligence Unit / Chula Vista Station

United States Homeland Security Investigations

California Department of Motor Vehicles Investigations Division

Bureau of Public Assistance Investigations, County of San Diego

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

NEWS RELEASE SUMMARY – December 9, 2019

SAN DIEGO – A Las Vegas business owner was sentenced to prison today for running a years-long conspiracy to import counterfeit electronics from China into the United States. 

Saad Ahmed was sentenced to six months in custody today by U.S. District Judge Thomas J. Whelan, based on Saad’s conviction for Conspiracy to Traffic in Counterfeit Goods. 

Ahmed, 32, owns and operates PhonePartsUSA, a Las Vegas, Nevada-based company that sells cellular telephone parts and other electronics throughout the United States—including to customers in San Diego.  In his plea agreement, Ahmed acknowledged conspiring with a variety of individuals in China to bring counterfeit cell phone parts and accessories from China to the United States.  The conspiracy stretched back to at least September 2012.

PhonePartsUSA trafficked $1,499,999 worth of counterfeit goods during this period, per Ahmed’s plea agreement.  The phony merchandise bore trademarks from Samsung, Apple and the electronic quality certification company UL, but the goods were actually inauthentic copies.  Court filings relate that some of Ahmed’s customers had quality complaints about counterfeit parts purchased from his business. 

Part of Ahmed’s scheme involved grossly undervaluing his international imports to deflect U.S. Customs’ attention from his shipments, according to court documents.  Ahmed then directed his staff to destroy the false undervalued invoices when the shipments arrived at his warehouse. 

Ahmed agreed to pay restitution to the three trademark holders in an amount totaling $269,681, which constituted the proceeds Ahmed’s business received from trafficking in the counterfeit merchandise.  Ahmed also agreed not to contest the forfeiture of 4,453 cell phone parts and accessories seized from PhonePartsUSA as part of a search by Homeland Security Investigations in June 2018.  

“Counterfeit merchandise is a threat to consumers, to legitimate producers, and to the entire economy,” said U.S. Attorney Robert Brewer.  “The public is entitled to trust that a trademark means a product is authentic, and not that an unscrupulous merchant is trying to make a quick buck at their expense.  Counterfeit goods are not easy money.  They are a crime.”

“HSI takes great pride in getting justice for the victims of this counterfeit merchandise scheme, which preyed on unsuspecting customers,” said Francisco Burrola, Special Agent in Charge, Homeland Security Investigations (Nevada).  “Counterfeiting and intellectual property rights violations are anything but victimless crimes—they harm legitimate businesses, consumers and governments.”

DEFENDANT                       Case Number 19-cr-3401-W

Saad Ahmed                           Las Vegas, NV                       Age: 32

SUMMARY OF CHARGES

Conspiracy to Traffic in Counterfeit Goods – Title 18, U.S.C., Sections 371 & 2320(a)

Maximum penalty: Five years in prison, $250,000 fine (or twice the pecuniary gain or loss), restitution and forfeiture.

AGENCIES

Homeland Security Investigations

U.S. Customs & Border Protection

Assistant U.S. Attorney Jaclyn Stahl (619) 546-8456

NEWS RELEASE SUMMARY – December 5, 2019

SAN DIEGO – Wei Sing Goh, a Malaysian citizen, pleaded guilty in federal court this week to interfering with an airplane flight crew.

According to admissions in his plea agreement, Goh boarded Japan Airlines Flight JL66 in Narita, Japan and landed at the San Diego International Airport on August 13, 2019 at 11:56 am. Approximately one hour into the flight, Goh began consuming alcohol and became agitated and unruly.

During the flight Goh left his seat several times, disturbing passengers and flight crew members. He also refused to comply with flight crew members’ instructions. Goh shouted racial slurs and curse words, made inappropriate sexualized comments to a female flight crew member, and inappropriately touched a female flight crew member. At one point, Goh threw his drink at the man sitting behind him and struck the man in the head with a crumpled cup. After Goh was given several verbal warnings and a final written warning pursuant to Japan Airlines’ policy, he struck a flight crew member while other flight crew members, with the assistance of three passengers, attempted to subdue Goh.

Goh’s behavior interfered with the flight crew’s performance of their duties in several ways, including reducing the ability of the flight crew to perform safety checks and disrupting the normal meal service of the flight. The pilot and co-pilots had to communicate with the Japan Airlines Operation Center to discuss whether to divert the aircraft, which impeded the normal landing procedures for the plane.

“Crimes aboard aircraft put everyone in danger,” said U.S. Attorney Robert Brewer. “We will do everything we can to prevent flight crew and travelers from becoming victims of physical violence, sexual assault, theft and other crimes that occur all too frequently at 35,000 feet. If you interfere with a flight crew, or commit a crime against a passenger, you are putting everyone at risk, and you are going to face consequences.”

“Safety on an airplane is important to all who fly,” said FBI SAC Scott Brunner. “A drunk, abusive passenger acting out against other passengers and the flight crew is not merely an inconvenience, but a serious threat to the safety of everyone on the flight. This sort of abusive and threatening behavior will not be tolerated and constitutes a federal crime that the FBI will investigate fully to protect the flying public. May this case serve as a warning to others.”

This case was investigated by the San Diego FBI Port of Entry Team and the U.S. Attorney's Office, with support from San Diego Harbor Police, the Department of Homeland Security, and U.S. Customs and Border Protection. Other agencies supporting the FBI Port of Entry Team include the Federal Aviation Administration, Transportation Security Administration, and San Diego Port Authority.

Goh is scheduled to be sentenced before U.S. District Judge Anthony J. Battaglia on March 2 at 9:00 am.

DEFENDANT                                               Case No. 19-CR-3515-AJB

Wei Sing Goh                        Age: 20                       Malaysia

SUMMARY OF CHARGES

Interference with flight crew members and attendants, in violation of 49 U.S.C. § 46504.

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

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Homeland Security Investigations

San Diego Harbor Police

Customs and Border Protection

 

 

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

NEWS RELEASE SUMMARY – December 3, 2019

SAN DIEGO – The Department of Justice announced today that it has awarded more than $376 million in grant funding to enhance state, local and tribal law enforcement operations and reinforce public safety efforts in jurisdictions across the United States, including $728,459 to support public safety activities in the Southern District of California. The awards were made by the Department’s Office of Justice Programs.

“Crime and violence hold families, friends and neighborhoods hostage, and they rip communities apart,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “These programs help restore the health and safety of crime-ravaged communities by supporting prevention activities, aiding in the apprehension and prosecution of perpetrators, facilitating appropriate sentencing and adjudication, and providing communities and their residents the means for recovery and healing.”

The awards support an array of crime-fighting initiatives, including the quarter-billion dollar Edward Byrne Justice Assistance Grants Program, which funds public safety efforts in 929 state, local and tribal jurisdictions. Funding also supports sex offender registration and notification, law enforcement-based victim services, the testing of sexual assault kits, and programs designed to address youth with sexual behavioral problems. Other awards will focus on wrongful convictions, intellectual property enforcement, innovative prosecution strategies and the safety and effectiveness of corrections systems.

“These funds will bolster our crime-fighting efforts in San Diego and Imperial counties,” said U.S. Attorney Robert Brewer of the Southern District of California. “The program supports a broad range of state and local criminal justice initiatives and reduces existing gaps in service that impact violent crime, crime victims, enforcement, prosecution, adjudication, detention, and rehabilitation.”

The following awards were made to organizations in the Southern District of California:

City of San Diego                   $473,241

City of La Mesa                          12,953

City of Carlsbad                          14,710

City of El Cajon                          27,733

City of Oceanside                       47,666

City of Escondido                       38,882

City of El Centro                        12,976

City of Vista                              25,414

City of Chula Vista                     51,742

City of Lemon Grove                  11,032

County of Imperial                      12,110

TOTAL                                   $728,459

Information about the programs and awards announced today is available here. For more information about OJP awards, visit the OJP Awards Data webpage

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training and technical assistance, and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

 

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

NEWS RELEASE SUMMARY – December 3, 2019

SAN DIEGO – Former trustee and disbarred attorney, Earl Nelson Feldman, pleaded guilty in federal court today, admitting that he used his position of trust to steal millions of dollars from several charitable trusts, which he spent on personal expenses rather than donating to charities. In executing his scheme to defraud, he covered his tracks by filing false tax returns with the Internal Revenue Service.   

Feldman entered his guilty plea before U.S. Magistrate Judge William V. Gallo. Feldman pleaded guilty to wire fraud and filing false tax returns. 

According to his plea agreement, Feldman was the trustee of several charitable trusts as early as 1996. He was also an attorney and Certified Public Accountant (CPA) licensed in the State of California. As early of January 2012 and continuing up to and including April 15, 2015, Feldman made more than $1.6 million in unauthorized wire transfers and withdrawals from the bank accounts of the charitable trusts under his control. To conceal his theft of trust funds, he filed false and fictitious tax returns with the IRS that inflated and falsely reported the amount of charitable gifts allegedly made by him as trustee of the charitable trusts. In lieu of making these authorized gifts, Feldman misappropriated trust assets for his own personal expenses, including but not limited to: paying his personal mortgages; paying taxes on properties he owned; making his personal federal and state tax payments; purchasing personal vehicles; paying contractors working on his personal residence; transferring funds from the charitable trust accounts to his personal brokerage account; and paying his personal credit cards.

In total, Feldman admitted he stole approximately $1,648,531.40 from the charitable trusts. Since his fraud was uncovered, Feldman has repaid approximately $1,547,444.16. As part of his plea agreement, Feldman agreed to repay the remaining balance of the restitution in the amount of $101,087.24 to over fifty individual charities. At the hearing, Feldman informed the court that he had written the check for the remaining amount of restitution and intended to deposit it today with the clerk of the court. 

In addition to his embezzlement scheme, Feldman admitted in court that he also filed false tax returns. He failed to report the money he embezzled on his tax returns for tax years 2012 through 2014. Feldman admitted that he owes the IRS more than $575,000 in federal income taxes. At the hearing, Feldman informed the Court that he had written the check payable to the IRS for the total amount of taxes due, with interest, and that he intended to mail the check to the IRS today.

“As trustee and an attorney, Mr. Feldman had significant authority and control over the management of the charitable trusts’ assets,” said U.S. Attorney Robert Brewer. “Rather than faithfully exercise this important duty, Mr. Feldman embezzled millions of dollars for his own personal benefit and filed false tax returns to conceal his crime. As he admitted in court today, Mr. Feldman violated the law, the canons of his profession, and the important trust of his clients.”

“Mr. Feldman violated his fiduciary responsibilities and abused his position as trustee by stealing over   $1.6 million from charitable trusts, spending the funds to benefit himself, and then filing false tax returns on behalf of the trusts to mislead the IRS and conceal his fraud,” said Ryan L. Korner, Special Agent in Charge of IRS Criminal Investigation. “Mr. Feldman’s greed victimized dozens of charities because the funds he stole were designated to be gifts to numerous other charitable organizations. As a Certified Public Accountant, Mr. Feldman knew better, and IRS Criminal Investigation will use our forensic accounting expertise to ensure he is held accountable.”

“Earl Feldman had a license to practice law and accounting, but instead used these licenses to steal from those who trusted him,” said FBI Special Agent in Charge Scott Brunner. “Feldman abused his position and defrauded clients of over $1.6 million dollars. Fraud, particularly committed by those who hold positions of trust, will be investigated and brought to justice by the FBI.”

Feldman is scheduled to be sentenced February 28, 2020 at 9:00 a.m. by U.S. District Judge Cathy A. Bencivengo. At the conclusion of today’s hearing, Feldman was released on bond.

DEFENDANT                                   Criminal Case No. 19CR4892-CAB

Earl Nelson Feldman                          Age: 76

SUMMARY OF CHARGES:

Count 1 – Wire Fraud (18 U.S.C. § 1343)

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

Count 2 – Making a False Tax Return (26 U.S.C. § 7206(1))

Maximum Penalties: Three years in prison; $250,000 fine

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Internal Revenue Service – Criminal Investigation

         

Assistant U.S. Attorneys Emily W. Allen (619) 546-9738, W. Mark Conover (619) 546-6763 and Phillip L.B. Halpern (619) 546-6964

NEWS RELEASE SUMMARY – December 3, 2019

SAN DIEGO – U.S. Representative Duncan D. Hunter pleaded guilty in federal court today to the major count in his indictment, admitting that he knowingly and willfully stole hundreds of thousands of dollars in campaign funds that he and his wife used to maintain their lifestyle.

According to the plea agreement, Hunter and his wife, Margaret, who pleaded guilty in June 2019, illegally converted more than $150,000 in campaign funds from 2010 through 2016 to purchase goods and services for their personal use and enjoyment, and engaged in 30 or more illegal transactions using campaign funds for personal use.

 As detailed in the indictment, the Hunters stole money from the campaign for items as inconsequential as fast food, movie tickets and sneakers; as trivial as video games, Lego sets and Playdoh; as mundane as groceries, dog food,  and utilities; and as self-indulgent as luxury hotels, overseas vacations and plane tickets for their family pet rabbits, Eggburt and Cadbury – all while their family was otherwise deeply in debt.

“Congressman Duncan D. Hunter violated the trust of his supporters by diverting hundreds of thousands of dollars they donated in good faith to his reelection campaign for personal expenditures,” said Assistant U.S. Attorney David Leshner. “This was not an accounting mistake by his campaign. This was a deliberate, years-long violation of the law.  Congressman Hunter used the power of his position to fund a lifestyle out of his reach, unwittingly financed by those who put him there.  His guilty plea entered today acknowledges and accepts responsibility for his conduct. Leshner praised prosecutors Phil Halpern, Emily Allen and Mark Conover as well as the Federal Bureau of Investigation for their tireless pursuit of justice in this case.

“Our campaign finance laws are designed to promote transparency in our electoral process by, among other things, prohibiting the diversion of campaign contributions for personal use,” said Scott Brunner, Special Agent in Charge of the San Diego Division of the FBI.  “The FBI will fully investigate any person who blatantly disregards these laws and abuses the trust of constituents and contributors by turning campaign coffers into a personal slush fund.  Today, the comprehensive FBI investigation resulted in Duncan Hunter pleading guilty to a conspiracy with his wife to convert hundreds of thousands of dollars in campaign funds for personal use.”

U.S. District Judge Thomas J. Whelan set Mr. Hunter’s sentencing for March 17, 2020 at 9:00 a.m.

 “Congressman Hunter was indicted—and he pled guilty today—because of his own misconduct, and no one else’s,” said Assistant U.S. Attorney Emily Allen. “This is not a case about mismanagement, or sloppy accounting, or ‘mistakes.’  Duncan Hunter intentionally took money that did not belong to him and used it for his own benefit.  For that, he has been held accountable, and we are pleased that today he has taken this first step toward taking responsibility for his crime.”

Assistant U.S. Attorney Phil Halpern said: “The foundation of our legal system is based upon the proposition that no one individual is above the law, regardless of the heights they've reached, how much they've contributed, or what office they occupy. Today's disposition ensures that the rule of law remains pre-eminent in this country and that Mr. Hunter both acknowledges and is held accountable for his role in stealing hundreds of thousands of dollars in campaign funds.”

As detailed in the indictment, beginning no later than 2010 and continuing up to and including at least 2016, Duncan and Margaret Hunter agreed to use campaign funds for their own personal benefit and enjoyment—and to spend freely from Hunter’s campaign donors’ funds. Many of the Hunters’ personal outings with family or friends (which as detailed in the indictment included trips to the Del Mar racetrack, dinners or drinks with friends, family and “couples” vacations, golf outings, and a weekend-long bachelor party) should not have been paid for with campaign funds. Among their improper spending, the Hunters paid $2,448.27 in campaign funds in August 2011 for a “couples” vacation in Las Vegas, Nevada, which Hunter concealed by falsely reporting to the campaign treasurer that the expenses were all  “campaign related.”

Similarly, later that same month, knowing that their family bank account had a negative balance, the Hunters improperly used $113.73 in campaign funds to pay their half of the bill during another couples’ “date night” out with good friends at Jake’s Del Mar; improperly used $156.22 in campaign funds during a “couples” day at the Del Mar Racetrack; and improperly used $511.03 in campaign funds at the Hotel del Coronado to celebrate their child’s birthday. Hunter once again falsely told the campaign treasurer that all these charges were “campaign related.”

Previously, Hunter’s wife, Margaret, publicly acknowledged that these types of improper expenses went on for years and included spending as flagrant as: (1) $100.69 on November 16, 2013 at Casa De Pico in La Mesa to take their family and close friends out to dinner in relation to a sporting event featuring one of the Hunters’ children; (2) $1,489 on June 28, 2014 to treat their good friends to dinner at the Studio restaurant in the Montage Laguna Beach resort, and for room service, drinks, and meals the next day for the Hunters by themselves; (3) a family trip to Disneyland on September 26, 2015, which included $229.44 at Disneyland’s Star Trader shop for Minnie Mouse ear headbands and Star Wars-themed clothes for the Hunters’ children; and  (4) $669.07 on March 27, 2016 at the Hotel del Coronado for a family Easter Sunday brunch in the Crown Room that the Hunters recognized was well outside their budget. 

In her plea agreement, Margaret Hunter specifically acknowledged that she and Duncan Hunter used campaign funds to secretly make thousands of dollars in improper personal purchases (including family vacations, household goods and groceries, restaurants and bar tabs, a bachelor party, gas, fast food, retail shopping, cash withdrawals, a garage door, and personal Uber rides, among others) which they continued to disguise as campaign-related expenses.

The indictment also details how Hunter aided his malversation by repeatedly providing his wife with a campaign credit card despite the advice from his treasurer that he not do so.  Similarly, Hunter – against the advice of his campaign staff and congressional office staff – installed Margaret as his paid campaign manager on two separate occasions with full knowledge that she was misappropriating campaign funds in order to finance their personal lifestyle.  When discussing her appointment as the salaried campaign manager for the second time in 2014, Margaret observed that Hunter “need[ed] the extra money as much as I do[.]”

According to documents previously made public, the Hunters used campaign funds improperly on a number of family vacations, including:

• A July 2014 vacation to Washington, D.C. and a resort in Pennsylvania (which included personal items and activities such as purchasing cigarettes, $399 for zip lining for Hunter and two of his children, and $250 in airline travel charges for Eggburt);
   
• A February 2015 family trip to Minnesota, during which they improperly paid for personal family expenses including $250 in airline travel charges for Eggburt, and $132 in Uber rides to take the Hunter family to the Mall of America;
   
• A June/July 2015 family vacation to Hunter’s cousin’s wedding in Boise, Idaho, and a stopover in Las Vegas, in which the Hunters, among other things, spent $205.62 in campaign funds for personal items at the North Face store;
   
• A November 2015 family vacation to Italy, in which the Hunters improperly used more than $14,000 in campaign funds, which Hunter justified by attempting to set up a one-day tour of a U.S. Navy facility in Italy (which never occurred);
   
• Similarly, Hunter used more than $1,000 in campaign funds to take one of his girlfriends on a 2010 winter ski trip to the Hyatt Regency Lake Tahoe Resort, Spa and Casino. 

The indictment also highlights how Hunter turned to campaign funds because his family’s finances were in constant disarray.  During the course of the conspiracy, the Hunters overdrew their bank account more than 1,100 times in a seven-year period resulting in $37,761 in “overdraft” and “insufficient funds” bank fees.  Their credit cards were frequently charged to the credit limit, often with five-figure balances, resulting in an additional $24,600 in finance charges, interest, and other fees related to late, over the limit, and returned payment fees.  

According to the indictment and other publicly filed documents, Hunter and his wife both recognized that campaign funds were being spent on personal activities. For example, after returning home from their Boise and Las Vegas vacation, Duncan and Margaret Hunter discussed how the campaign card had been declined as the family had “racked up a $600 minibar…and more charges at Caesars…” as well as a $200 family breakfast, the “kids room service” and pool drinks, and gift shop purchases.  And, despite falsely telling the campaign treasurer that the various charges related to their 2015 Italy vacation “were mostly military/defense meet related,” Margaret Hunter emailed a friend that “Italy was amazing.  Truly our best family trip so far.  Like that saying ‘if traveling was free you’d never see me again’!” 

DEFENDANTS                                            Case Number 18cr3677-W                          

Duncan D. Hunter                                           Age: 42                       Alpine, CA

Margaret E. Hunter                                         Age: 44                       La Mesa, CA

SUMMARY OF CHARGE

Conspiracy to Steal Campaign Funds – Title 18, U.S.C., Sec. 371

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

AGENCY

Federal Bureau of Investigation

Assistant U. S. Attorneys Shane Harrigan (619) 546-6981 and Caroline Han (619) 546-6968    

NEWS RELEASE SUMMARY – December 2, 2019

SAN DIEGO – An indictment was unsealed in federal court today charging Jehad Serwan Mostafa, a 37-old U.S. citizen and former San Diego resident who is on the FBI’s Most Wanted Terrorist List, with terrorism violations arising from his critical role in providing support to the militant Islamic terrorist organization, al-Shabaab.

The superseding indictment alleges that from no later than March 2008 through in or about February 2017, Mostafa conspired to provide material support, including himself as personnel, to terrorists; conspired to provide material support to al-Shabaab, a designated foreign terrorist organization (FTO); and provided material support to al-Shabaab.

Mostafa, also known as “Ahmed Gurey,” “Ahmed,” “Anwar,” “Abu Anwar al Muhajir,” and “Abu Abdallah al Muhajir,” was originally charged in a three-count indictment in October 2009 with similar charges.  The superseding indictment announced today expands the scope of the indictment alleging that Mostafa’s support of terrorist activities and al-Shabaab continued up to and including February 2017. 

On March 20, 2013, the Department of State’s Reward for Justice Program offered a reward of up to $5 million dollars for information leading to the arrest and conviction of Mostafa.  U.S. Attorney Robert Brewer said the United States unsealed the superseding indictment with hopes that Mostafa will be apprehended and brought to justice. “We believe this defendant is the highest-ranking U.S. citizen fighting overseas with a terrorist organization,” Brewer said. “Al-Shabaab’s reign of terror threatens U.S. national security, our international allies and innocent civilians. Today we seek the public’s assistance in capturing Mostafa and disrupting Al-Shabaab.”

Scott Brunner, the Special-Agent-In-Charge of the San Diego FBI, stated that Mostafa is currently believed to be in Somalia, and the FBI is seeking the assistance of the public, both in the United States and East Africa, in locating and apprehending Mostafa.  SAC Brunner stated that the apprehension and prosecution of Mostafa will aid in disrupting al-Shabaab’s terrorist activities, which continue to threaten U.S. national security, our international allies, and innocent civilians, both U.S. and foreign citizens alike.

SAC Brunner stated that Mostafa was raised in the Serra Mesa area of San Diego and attended high school and college in San Diego.  After graduating from college, in late 2005 at the age of 23, Mostafa departed San Diego, traveling first to Sana’a, Yemen, and then on to Somalia where he engaged in fighting against internationally supported Ethiopian forces.  Mostafa eventually joined al-Shabaab, a terrorist group that the U.S. Department of State designated as a Foreign Terrorist Organization in 2008.  

Al-Shabaab, meaning “The Youth” in Arabic, is a violent and brutal militia group that has used intimidation and violence to undermine the Somali government and the foreign military presence supporting it.  The group seeks to control territory within Somalia in order to establish a society based on its rigid interpretation of Sharia law.  In 2012, it pledged allegiance to the militant Islamist organization Al-Qaeda.  Over time, al-Shabaab has engaged in external operations in neighboring countries in pursuit of global jihad.  While its terrorist attacks have been concentrated in East Africa, it has claimed  responsibility for attacks that resulted in injuries to Americans and/or had ties to San Diego: the 2010 Kampala, Uganda suicide bombing of a bar during a World Cup soccer match that killed a U.S. citizen working for a San Diego non-profit organization; and a 2013 attack on the Westgate shopping mall in Nairobi, Kenya that killed over 60 and injured U.S. citizens, including a graduate of Torrey Pines High School.  Additionally, as recently as January 15, 2019, al-Shabaab executed a coordinated attack at the DusitD2 hotel in Nairobi, Kenya, where 16 innocent civilians were killed, including one U.S. citizen.  

SAC Brunner stated that for over a decade, Mostafa has played a critical role in al-Shabaab, including in its media operations, training of soldiers, and participating in attacks on Somali government forces and African Union troops.  Since 2009, Mostafa has held leadership positions with al-Shabaab, and today is believed to be the highest-ranking U.S. citizen fighting overseas with a terrorist organization.  In 2011, Mostafa appeared at a press conference with an al-Shabaab leader, purporting to be an al-Qaeda emissary.  SAC Brunner stated that the FBI assesses that this media stunt evidences his efforts to facilitate al-Shabaab’s relationship with other terrorist groups and role in external operations.

According to SAC Brunner, in 2019, the FBI became aware of Mostafa’s participation and leadership within al-Shabaab’s explosives department.  Specifically, Mostafa has been implicated in the use of improvised explosive devices (IEDs) in attacks in Somalia and in improving their effectiveness as a tool of terror.  Al-Shabaab has recently used IEDs against U.S. interests in Somalia.  On September 30, 2019, al-Shabaab attacked the Baledogle U.S. military airbase in southern Somalia where U.S. soldiers are located to support Somali and African Union troops, and assaulted an Italian military convoy traveling in the Somali capital of Mogadishu.  Al-Shabaab claimed responsibility for both attacks.  Al-Shabaab is resolved to continue attacks on innocent civilians in Somalia and in the region, and has demonstrated it will go to great lengths to threaten the security of the United States and our partners.   

SAC Brunner noted that the FBI believes Mostafa continues to play a critical role in planning operations directed against the Somali government and internationally supported African Union forces in Somalia and East Africa.  As a result, Mostafa continues to pose a direct threat to U.S. forces, civilians and interests.

The public is reminded that a reward of up to $5 million dollars is being offered for information leading to the arrest and conviction of Mostafa. Anyone with information about Jehad Serwan Mostafa can report tips anonymously by phone at 1-800-CALL-FBI or online at “tips.fbi.gov” or can contact the nearest FBI office, American Embassy or Consulate.

DEFENDANT                                               Criminal Case No. 09CR3726-WQH

Jehad Serwan Mostafa                                    Age 37            Somalia (former resident of San Diego)        

SUMMARY OF CHARGES

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

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

Conspiracy to Provide Material Support to a Foreign Terrorist Organization – Title 18, U.S.C., Section 2339B(a)(1)

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

Providing Material Support to a Foreign Terrorist Organization – Title 18, U.S.C., Section 2339B(a)(1)

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

INVESTIGATING AGENCIES

San Diego Joint Terrorism Task Force

Federal Bureau of Investigation

 

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

NEWS RELEASE SUMMARY – November 22, 2019

SAN DIEGO – Former San Diego County Sheriff’s Captain Marco Garmo was arrested this morning based on a federal grand jury indictment that charges him with operating an illegal firearms trafficking business – sometimes from his office at the Rancho San Diego Station with the help of others, including a fellow Sheriff’s deputy.

The indictment also charges Sheriff’s Department Lieutenant Fred Magana, prominent San Diego jeweler Leo Hamel, firearms dealer Giovanni Tilotta and El Cajon resident Waiel Anton with aiding and abetting Garmo’s illegal firearms business.

In federal court this morning, Magana and Hamel entered guilty pleas before U.S. Magistrate Judge Bernard G. Skomal, admitting that they aided Garmo’s business by engineering and engaging in straw purchases of firearms, creating false records to conceal those purchases, and offering to promote Garmo’s weapons. Magana was granted a $25,000 bond; Hamel a $250,000 bond secured by a lien on a piece of property. They are scheduled to be sentenced February 21, 2020 at 8:30 a.m.

Anton was arrested early this morning and like Garmo is scheduled to be arraigned this afternoon at 2; Tilotta is currently at large.

According to the indictment, Garmo was a Sheriff’s deputy for almost 27 years until September 20, 2019, serving as the captain in charge of the Rancho San Diego Station until the February 13, 2019 search warrants executed as part of this investigation. The indictment alleges that Garmo was engaged in the unlawful acquisition, transfer, and sale of firearms during his entire tenure as the Captain of the Rancho San Diego Station.

Garmo is also accused of tipping off his cousin, who was a partner in an illegal marijuana dispensary, based on information Garmo had received of an impending warrant search of the cousin’s dispensary by Sheriff’s Deputies.

The indictment describes Garmo’s business of firearms dealing as undertaken for both financial profit and to cultivate future donors for his anticipated campaign for Sheriff of San Diego County.  Most of Garmo’s firearms transactions involved the purchase and resale of “off roster” handguns, which designates guns that may be purchased by members of law enforcement but not members of the general public.  While law enforcement officers are not prohibited from reselling “off roster” handguns in certain circumstances, Garmo received an explicit warning from the ATF that excessive resales for profit could violate federal law.  Garmo acquired roughly 146 firearms between March 2013 and February 2019, per California’s firearms record database, and he sold or otherwise transferred 104 of them to others.  

“This office will not tolerate public servants who abuse their positions of trust for personal gain,” said First Assistant U.S. Attorney Peter J. Mazza. “Law enforcement members who step outside of the law are subject to the same standards as everyone else in our community.  No one deserves the fair application of the law more than all of the law-abiding men and women who wear the badge honorably to protect our communities.”

As part of his guilty plea, Leo Hamel, the owner of Leo Hamel Fine Jewelers, admitted to purchasing a variety of off roster handguns from Garmo, and engineered a series of “straw purchases” in which Garmo would falsely certify that he was acquiring an “off roster” gun for himself when in truth he was purchasing it for Hamel. Hamel further admitted that he acquired several firearms from Garmo without proper documentation through bogus, long-term firearm “loans” in exchange for money—which were sales in all but name. Hamel agreed in his plea to conducting straw purchases with Garmo and Lt. Fred Magana, and to planning with Garmo and Tilotta to construct a false paper trail to make it appear that the straw purchases were legitimate.  As part of his guilty plea, Hamel has also agreed to forfeit over 200 firearms and 100,000 rounds of ammunition seized from him on February 13, 2019. 

Tilotta, a Federal Firearms Licensee and the owner of Honey Badger Firearms, repeatedly facilitated Garmo’s straw purchase of firearms by accepting and submitting falsified firearms records, according to the indictment. The indictment further alleges that Tilotta sold and transferred firearms inside Garmo’s captain’s office at the Rancho San Diego Station, in violation of state and federal law. 

Lt. Magana admitted in his plea agreement that he straw purchased a pair of off roster firearms for Leo Hamel at Garmo’s direction.  Magana also admitted that he offered to advertise Garmo’s firearms to potential customers, but to keep Garmo’s name out of it until he found a buyer willing to close the deal. 

Finally, according to the indictment, Anton aided and abetted Garmo’s unlicensed firearms dealing by helping Garmo’s firearms buyers apply for permits to carry a concealed weapon (“CCW”) as part of Anton’s “consulting” business.  In exchange, the indictment alleges that Anton received cash payments from his clients and then paid a kickback to Garmo for referrals.  The benefit of Anton’s “consulting” arrangement was to secure early appointments for his clients to avoid the substantial backlog of CCW applicants—a benefit that Anton provided by leveraging his relationship with a member of the CCW processing staff to whom he had made an unlawful cash payment.

Anton is also charged with obstruction of justice for repeatedly urging one of his “consulting” clients—in reality, an undercover agent—to lie to federal investigators following the search of Anton’s residence in February.  Per the indictment, Anton exhorted the undercover agent not to tell investigators about the $1,000 Anton had charged the undercover agent to fast-track his CCW appointment, and instead to lie and say that Anton was helping him with his application because they were friends. 

Garmo is also charged with aiding and abetting the distribution of marijuana, and with using a telephone to further a drug crime. As the Captain of Rancho San Diego station, Garmo was responsible for policing unlicensed marijuana dispensaries operating in and around Spring Valley.  One such dispensary was known as “Campo Greens.”  The indictment alleges that Garmo provided an advance tip to the owners of Campo Greens—including Garmo’s cousin—when he was notified that it was scheduled to be searched within 24 hours.  After receiving this tip, staff at Campo Greens emptied its shelves and removed its inventory and cash to avoid a law enforcement seizure. 

According to the indictment, when Garmo was notified the following morning that the planned search had been cancelled, he again notified his family member.  Campo Greens reopened later that day.  Weeks later, when Campo Greens was posted with a cease-and-desist letter by San Diego County Code Compliance, Garmo again reached out to an acquaintance at the County.  Asking about the scheduled enforcement action against Campo Greens, Garmo inquired “Can we push it back?”  His acquaintance replied, “Yes, you can.”

Garmo lied to federal agents when interviewed about the tip-off, per the indictment, falsely claiming that he had never told a dispensary about an impending search warrant because he would never have put his deputies in harm’s way.

Mazza praised the lead prosecutors on the case, Assistant U.S. Attorneys Nicholas Pilchak and Andrew Haden, as well as the investigators from the ATF and FBI.  Mazza added that the U.S. Attorney’s Office wishes to extend its sincerest gratitude to the San Diego County Sheriff’s Department for initiating this investigation and for their assistance and support during its course.

“It is ATF’s duty and obligation to conduct criminal investigations whenever presented with credible evidence of violations of federal firearms laws,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Los Angeles Field Division Special Agent in Charge Carlos A. Canino. “ATF’s mission is to focus our efforts on firearms traffickers and trigger pullers. We will continue to pursue individuals engaged in this type of firearms trafficking activity while working with our law enforcement partners and the U.S. Attorney’s Office to increase public safety.”

“Law enforcement officers, at any level, who abuse their positions and the sacred trust placed in them by the communities they serve by aiding the criminal element will ultimately be brought to justice,” said FBI Assistant Special Agent-In-Charge Todd Hemmen. “The FBI will continue to relentlessly work to detect, investigate, and prosecute those officers who place personal enrichment above their allegiance to the rule of law.”

If you – or anyone you know – has information about the whereabouts of firearms listed in the attached bulletin that are registered to Garmo but have not been recovered by law enforcement, please call ATF at 858-966-1010. 

DEFENDANT                                   Criminal Case No. 19-CR-4768-GPC

Morad Marco Garmo                          Age: 52                       La Mesa. CA

Leo Joseph Hamel                               Age: 62                       Jamul, CA                                          

Giovanni Vincenzo Tilotta,                Age: 38                       El Cajon, CA

Fred Magana                                       Age: 42                       Chula Vista, CA

Waiel Yousif Anton                            Age: 35                       El Cajon, CA

SUMMARY OF CHARGES

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

Maximum Penalty: Five years in prison

Title 18, U.S.C., Sec. 922(a)(6) – False Statement in the Acquisition of a Firearm

Maximum Penalty: Ten years in prison

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

Maximum Penalty: Five years in prison

Title 18, U.S.C., Sec. 922(b)(2) – Conducting Firearms Transaction in Violation of State Law

Maximum Penalty: Five years in prison

Title 26, U.S.C., Sec. 5861(d) – Possession of Unregistered Firearm

Maximum Penalty: Ten years in prison

Title 18, U.S.C., Sec. 1001(a)(2) – False Statement

Maximum Penalty: Five years in prison

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

Maximum Penalty: Twenty years in prison

Title 21, U.S.C., Sec. 841 – Possession of Marijuana with Intent to Distribute

Maximum Penalty: Twenty years in prison

Title 21, U.S.C., Sec. 843(b) – Use of a Communications Facility to Further a Drug Crime

Maximum Penalty: Four years in prison

INVESTIGATING AGENCIES

Bureau of Alcohol Tobacco Firearms & Explosives (ATF)

Federal Bureau of Investigation (FBI)

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

NEWS RELEASE SUMMARY – November 15, 2019

SAN DIEGO – Alexander Avergoon, a longtime San Diego real estate agent and businessman, was arraigned in federal court today following his extradition Thursday from Latvia to San Diego to face charges stemming from two investment fraud schemes in which he stole more than $12 million from unwitting investors.

Avergoon made his initial appearance today before U.S. Magistrate Judge Burkhardt. At the hearing, prosecutors moved to detain Avergoon based on his risk of flight.  A detention hearing is scheduled for November 19 at 9:00 a.m. before U.S. Magistrate Judge Burkhardt.

Avergoon was indicted in August in the Southern District of California. He was located by Latvian law enforcement authorities and arrested in October. He was transferred to San Diego on Thursday.

The indictment, which was unsealed in October and provided to Latvian authorities, details Avergoon’s long-running schemes to defraud San Diego investors by pretending to use their money to buy and invest in real estate around San Diego County. Using his connections and reputation as a real estate agent, Avergoon scammed his clients and real estate investors by arranging fictitious real estate purchases and by selling them the rights to collect on fictitious loans.

From as early as 2010, Avergoon invited his victims to partner with him to purchase multi-unit apartment buildings or commercial office space, promising that the rental income would generate monthly dividends and that the investors would share in the appreciation when the properties were eventually sold. After collecting the money from investors, Avergoon told them he had purchased the buildings, and promised to service the rentals and distribute the rental income. In reality, Avergoon never actually bought these buildings; instead, he diverted the investors’ money to his own use. In order to sustain the illusion that the investment was legitimate, Avergoon made years’ worth of regular monthly payments to the investors, telling them the money came from rent payments.

In another scheme, the indictment charges that Avergoon offered additional victim investors the “opportunity” to earn approximately 8 to 20 percent interest on short-term loans to homeowners, and pretended to act as a broker between investors and homeowners. In reality, the homeowners were not working with Avergoon, did not agree to borrow money from the investors, and never signed the loan agreements Avergoon presented to his investor clients. Avergoon forged the loan documents—and the signatures on deeds of trust.  He then simply diverted the investors’ money to his own use. 

U.S. Attorney Robert Brewer praised the FBI and IRS for their important work bringing Avergoon to justice. “Criminals can run, but we will work with our law enforcement partners around the globe to make sure they  are brought to justice. We are committed to protecting the public from con artists and identifying thieves who undermine our trust and financial well-being.”

“Through lies and manipulation, Avergoon devised an egregious scheme in order to steal from investors; a classic case of greed overcoming honest business practices,” said FBI Special Agent In Charge Scott Brunner. “Today’s extradition shows that criminals who commit crimes and run will be subject to the long arm of American justice.”

“Mr. Avergoon allegedly victimized unwitting investors out of millions by falsely promising to purchase income-generating residential and business rental properties,” said Ryan Korner, Special Agent in Charge of IRS Criminal Investigation. “Mr. Avergoon used an elaborate system of fraudulent trust deeds, forged signatures, fake IRS documents, and shell companies to orchestrate his scheme. Perpetrators like Mr. Avergoon work to destroy the public’s trust in real estate professionals and the safety of investing in our housing markets. The agents of IRS Criminal Investigation will work tirelessly with our law enforcement partners to pursue these criminals and hold them accountable wherever they run or hide.”

The U.S. Attorney’s Office wishes to thank the Office of International Affairs of the Justice Department’s Criminal Division and our Latvian law enforcement partners, including the State Police of Latvia, for their extraordinary work in securing Avergoon’s return to the United States to face charges.

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

DEFENDANTS                                              Case Number 19CR02955-BAS                                          

Alexander Avergoon                                      Age: 43                                   San Diego, CA

SUMMARY OF CHARGES

Wire Fraud, in violation of 18 U.S.C. § 1343

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

Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A

Maximum Penalty: Mandatory term of imprisonment of two years, to be served consecutive to the sentence imposed for any underlying charge; fine of up to $250,000

Money Laundering, in violation of 18 U.S.C. § 1956(a)(1)(B)

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

Money Laundering in Amounts Over $10,000, in violation of 18 U.S.C. § 1957

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

AGENCIES

Federal Bureau of Investigation

Internal Revenue Service

 

Assistant U.S. Attorneys Rebecca Kanter (619) 546-7304 and Aaron Arnzen (619) 546-8384

NEWS RELEASE SUMMARY – November 15, 2019

SAN DIEGO, CA – Action Telecom, a Santee-based government contractor, pleaded guilty in federal court Thursday to fraud charges, admitting that the company illegally obtained $11 million in federal contracts that were supposed to be set aside for service-disabled veteran-owned businesses.

Action Telecom was indicted in April along with another company, A&D General Contracting, Inc., and its owner, Andrew Otero. Otero and A&D were convicted by a federal jury on fraud and conspiracy charges a year ago and were sentenced in June to 18 months custody and over $1.5 million in financial penalties.

Action Telecom, which is co-owned by Navy veteran Roger Ramsey and non-veteran Bruce Madden, admitted in its plea agreement to participating in a conspiracy to defraud the government by forming a joint venture with A&D – and falsely representing that Action and the joint venture qualified as service-disabled veteran-owned small businesses (SDVOSB). Based on the false claim to SDVOSB eligibility, the conspirators fraudulently obtained approximately $11 million in federal government construction contracts or task orders with the Department of Veterans Affairs and the Army Corps of Engineers.

The fraud conspiracy involved set-aside contracts that could only be bid upon by legitimate service-disabled veteran-owned small businesses – a designation that did not apply to Otero or A&D.  To appear qualified, Ramsey, Madden and co-conspirator Otero initially executed an agreement to create the joint venture, which stated that Action Telecom would be the managing venturer, employ a project manager for each of the set-aside contracts, and receive the majority of the joint venture’s profits.

However, Otero, Ramsey and Madden signed a secret side agreement six months later that made clear the joint venture was ineligible under the SDVOSB program. For example, the side agreement said the parties created the venture so that A&D could simply “use the Disabled Veteran Status of Action Telecom” to bid on contracts.  The side agreement also stated that A&D – not Action Telecom – would run the construction jobs.  They also agreed that “A&D will keep 98 percent of every payment; Action Telecom will receive 2 percent of every payment.”

In addition to the secret side agreement, the joint venture did not operate as a legitimate SDVOSB, but was essentially controlled by Otero and A&D.  For example, although Ramsey (a service-disabled veteran) nominally served as president of Action Telecom and the joint venture, he actually worked full-time as a vice president for another telecommunications company owned by Madden.  Otero and A&D, not Ramsey, controlled the day-to-day management, daily operation and long-term decision making of the joint venture. Among other things, Otero and A&D appointed an A&D employee as the project manager for every contract and task order.

“Our nation strives to repay the debt of gratitude we owe to our veterans by setting aside some government contracts for veterans with service-related disabilities,” said U.S. Attorney Robert Brewer.  “These unscrupulous contractors abused this program through a cynical and illegal ‘rent-a-vet’ scheme.  Our office will continue to protect these programs and hold those who abuse them fully accountable.”

Acting SAC Rebeccalynn Staples, Veterans Affairs Office of Inspector General (VA OIG), stated, “Every day legitimate SDVOSB companies lawfully compete to obtain set aside government contracts. Unfortunately, some non-veteran owned companies misrepresent themselves as a SDVOSB and fraudulently obtain set side contracts.  The VA OIG remains committed to aggressively pursuing these cases in an effort to maintain the sanctity of the program for all veterans.”

Action Telecom was ordered to appear before U.S. District Judge John Houston for sentencing on February 10, 2020 at 10 a.m.

CORPORATE DEFENDANTS

Action Telecom Inc., Santee, California

Criminal Case No. 17CR0879-JAH

SUMMARY OF CHARGE

False statement, in violation of 18 U.S.C. § 1001

Maximum penalty: Five years in prison

AGENCIES

Department of Veterans Affairs, Office of Inspector General

 

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

NEWS RELEASE SUMMARY – November 13, 2019

SAN DIEGO – Nimesh Shah, owner of Blue Star Learning, a technical training school located in San Diego, pleaded guilty today to defrauding the Department of Veterans Affairs out of more than $29 million in Post-9/11 G.I. Bill benefits. 

The Post-9/11 G.I. Bill provides veterans and other eligible individuals with assistance for education-related expenses such as tuition and housing.  The VA pays tuition and fees directly to the school where the veteran is enrolled, and if the veteran is enrolled on more than a half-time basis, the VA additionally provides a monthly housing allowance directly to the veteran, as well as money for books, supplies, equipment and other expenses. 

In order to receive and maintain approval to receive funds from the VA under the Post 9/11 G.I. Bill, Blue Star Learning was required to have at least 15% non-veterans for each course for which the VA was paying educational benefits under the Post-9/11 G.I. Bill, a rule called the “85/15 Rule.”  Blue Star Learning was forbidden to engage in any erroneous or misleading advertising. 

According to Shah’s plea agreement, from March 2016 to June 2019, he devised a scheme to defraud the VA with regards to Post 9/11 G.I. Bill benefits.  Specifically, although Shah knew that close to 100 percent of students at Blue Star Learning were veterans receiving VA educational assistance, Shah repeatedly misrepresented to the California State Approving Agency for Veterans Education (CSAAVE) and the VA that Blue Star Learning was in compliance with the 85/15 Rule.  In order to deceive CSAAVE and the VA, Shah created, and directed at least three other employees at Blue Star Learning to create, fake student files for the purported non-veterans in each program.  Shah additionally emailed the VA 48 fraudulent enrollment agreements for fictitious people he represented were non-veteran students at Blue Star Learning, complete with fraudulent dates of birth, social security numbers, addresses, phone numbers and emails for each fraudulent non-veteran student. 

Blue Star Learning additionally had to provide vocational attainment data to CSAAVE on a yearly basis, as part of a required yearly approval process. According to Shah’s plea agreement, Shah knew that the vast majority of Blue Star Learning graduates did not obtain jobs in the fields in which they were purportedly receiving training, and that the employment statistics on Blue Star Learning’s website were fraudulent. 

Shah nonetheless submitted fraudulent spreadsheets to CSAAVE claiming that all of the Blue Star Learning students listed were employed in the informational technology field.  On these spreadsheets, Shah provided fraudulent phone numbers, email addresses, employers, and employer contact information for each student.  Shah hired individuals to create the fraudulent email addresses for the Blue Star Learning students, and directed these individuals to answer emails received at the fraudulent email addresses pretending to be satisfied Blue Star Learning graduates working in the information technology field. Shah additionally created 30 fictitious companies that he listed as the employers on the fraudulent spreadsheets, and hired individuals to create fraudulent email addresses and domain names for each fictitious company. Shah directed a Blue Star Learning employee to purchase 30 cellular telephones, one for each fictitious employer, and had employees of Blue Star Learning create voicemails on each cellular telephone so that it would appear that the fraudulent businesses were legitimate if CSAAVE called to check.

“These funds were meant to provide educational benefits to veterans who served our country, not line the pockets of unscrupulous opportunists,” said U.S. Attorney Robert Brewer. “This defendant crafted an elaborate scheme to fleece the government and taxpayers, but this case put a stop to this significant fraud.” Brewer thanked prosecutor Michelle Wasserman and federal agents for excellent work on this case.

As a result of Shah’s fraud, the VA issued over $11 million in tuition payments to Blue Star Learning, and over $18 million in housing allowances and stipends. In total, the VA lost $29,350,999.  Shah’s wife, Nidhi Shah, pleaded guilty at the same time to one count of False Statement, as a result of lies she told to agents at the time of her interview.

DEFENDANT                                               Case Number 19CR4551-JAH; 19CR4550-JAH  

Nimesh Shah                                       Age: 36                                   San Diego, CA

Nidhi Shah                                          Age: 34                                   San Diego, CA

SUMMARY OF CHARGES

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

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

Nidhi Shah: False Statement – Title 18 U.S.C., Section 1001

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

AGENCY

Department of Veterans Affairs Office of Inspector General

Federal Bureau of Investigation

SAN DIEGO – A federal grand jury indictment was unsealed today charging fourteen alleged members of an international criminal organization with dozens of fraud, conspiracy, identity theft and money laundering charges related to their multi-million-dollar counterfeit iPhone and iPad scheme.

During a coordinated takedown that began early this morning, investigators executed 11 search warrants - including at two businesses plus several homes and vehicles located in Mira Mesa and Mission Hills - and seized an estimated $250,000 in cash plus 90 iPhones which are being evaluated to determine authenticity. As of today at noon, 11 of 14 defendants are in federal custody. Three are fugitives, including Xiamon Zhong, who is believed to be in China; Charley Hsu of San Diego; and Hyo Weon Yang of San Francisco.

According to the indictment, the organization - led by three brothers - imported more than 10,000 counterfeit iPhones and iPads from China, exchanged them for the real thing at Apple stores throughout the United States and Canada, and then shipped the authentic devices back to China and other foreign countries to sell at a premium.

Apple conservatively estimates that the loss associated with the counterfeit items that were fraudulently exchanged at Apple Stores for genuine Apple productss exceeds $6.1 million.

“While a significant amount of money in any circumstance, this prosecution is about more than monetary losses,” said U.S. Attorney Robert Brewer. “The manufacture of counterfeit goods - and their use to defraud U.S. companies - seeks to fundamentally undermine the marketplace and harms innocent people whose identities were stolen in furtherance of these activities. The United States Attorney’s Office is fully committed to bringing to justice those who seek to damage American markets and consumers through the peddling of bogus products.”

FBI Special Agent in Charge Scott Brunner said: “This significant investigation and the indictment of these 14 individuals shows the FBI’s commitment to working with the United States Attorney’s Office and our law enforcement partners to combat international fraud schemes that affect American citizens and American businesses against counterfeit goods originating in China and those fraudsters who exploit American trademarked products for their personal financial gain.”

The Liao brothers – alleged ringleaders Zhiwei, Zhimin and Zhiting – were arrested by FBI agents this morning along with their wives. The brothers are naturalized U.S. citizens born in China. Other defendants include mostly U.S. citizens, mostly naturalized, from China, Vietnam and Russia.

According to the indictment, the Liao brothers directed other alleged conspirators to exchange counterfeit iPhones and iPads for genuine iPhones and iPads at Apple stores throughout the United States and Canada.  Defendants intentionally damaged the counterfeit iPhones and iPads and fraudulently represented the counterfeit devices to be genuine Apple devices that were covered by an Apple warranty knowing that Apple would exchange damaged devices under warranty for new genuine Apple devices.

According to the indictment, all genuine Apple iPhones have an International Mobile Equipment Identity (IMEI) number, and a serial number, that are both unique numbers to each device. The counterfeit iPhones had IMEI and serial numbers that matched IMEI and serial numbers for genuine iPhones and iPads that were purchased and used by other persons and covered by an Apple warranty in the United States or Canada.

U.S. Attorney Brewer thanked lead prosecutor Tim Salel and agency partners, including the FBI, San Diego Police Department, U.S. Customs and Border Protection and Homeland Security Investigations, for their diligent pursuit of justice in this matter.

19CR4407-BAS Indictment

DEFENDANTS                                            Case Number             19cr4407-BAS                                              

Zhiwei Loop Liao                                           Age: 31                       San Diego, CA

(Naturalized U.S. citizen born in China)

 

Zhimin Liao                                                    Age: 33                       San Diego, CA

(Naturalized U.S. citizen born in China)

 

Zhiting Liao                                                    Age: 30                       San Diego, CA

(Naturalized U.S. citizen born in China)

 

*Xiamon Zhong                                              Age: 33                       China

(Chinese national residing in China)

 

Phillip Pak                                                      Age: 31                       Richmond, CA

(U.S. citizen)

 

Dao Trieu La                                                   Age: 29                       San Diego, CA                                   

(Naturalized U.S. citizen born in Vietnam)

                       

Mengmeng Zhang                                           Age: 28                       San Diego, CA

(Lawful permanent resident. Chinese national)

 

Tam Thi Minh Nguyen                                   Age: 36                       San Diego, CA

(Lawful permanent resident. Vietnamese national)

 

Deedee Zhu                                                     Age: 32                       San Diego, CA

(Naturalized U.S. citizen born in China)

 

Danny Tran Chan                                           Age: 29                       San Diego, CA

(U.S. citizen)

 

*Charley Hsu                                                  Age: 39                       San Diego, CA

(Chinese national)

 

Jiaye Jiang                                                       Age: 32                       San Diego, CA

(Naturalized U.S. citizen born in China)

 

*Hyo Weon Yang                                           Age: 31                       San Francisco, CA                             

(Naturalized U.S. citizen born in Korea)

                                               

Dmitri Pigarov                                                Age: 31                       San Diego, CA

(Naturalized U.S. citizen born in Russia)

 

SUMMARY OF CHARGES

 

Title 18, U.S.C., Sec. 1349 – Conspiracy to Commit Mail Fraud and Wire Fraud

Maximum penalty: Twenty years in prison and a $12.2 million fine (twice the value of the gross loss to the victim, Apple, Inc.)

 

Title 18, U.S.C., Sec. 1343 - Wire Fraud;

Maximum penalty: Twenty years in prison and a $12.2 million fine (twice the value of the gross loss to the victim, Apple, Inc.)

 

Title 18, U.S.C., Sec. 1341 – Mail Fraud;

Maximum penalty: Twenty years in prison and a $12.2 million fine (twice the value of the gross loss to the victim, Apple, Inc.)

 

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

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

 

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

Maximum penalty: Two years in prison (to run consecutively to any other term of imprisonment)  

 

Title 18, U.S.C., Secs. 1956(a)(2)(A), and 1956(h) – Conspiracy To Launder Money;

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

 

INVESTIGATING AGENCIES

 

FBI

San Diego Police Department

U.S. Customs and Border Protection

Homeland Security Investigations

San Diego County Sheriff’s Department

 

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

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

NEWS RELEASE SUMMARY – November 13, 2019

SAN DIEGO – Herbert Gutierrez, former warehouse manager at the U.S. Navy Military Sealift Command Warehouse in San Diego, pleaded guilty today to stealing more than $2.5 million worth of goods from the Navy warehouse where he worked at the time.

According to his plea agreement, Gutierrez stole the items over a nine-month period, from July 2018 to April 2019. He advertised items from the warehouse for sale online, including through such websites as eBay, and then allowed private individuals into the Military Sealift Command (MSC) warehouse yard during work hours and after hours to take the government property, load it onto trucks, and haul it away. 

For example, in February 2019, Gutierrez allowed a utility truck and a tractor-trailer to enter the MSC warehouse after hours – and when they left, the vehicle contained over $1 million in stolen copper nickel tubing. 

That same month, Gutierrez sold numerous Caterpillar parts from the warehouse to a company he found online.  Once again, Gutierrez allowed a private freight company to enter the MSC warehouse yard and load the items, which filled four pallets.  He also created fraudulent paperwork to conceal his criminal activity.  

In April 2019, Gutierrez again allowed two individuals to enter the MSC warehouse in daylight, and he loaded up their vehicle with stolen government property, accepting thousands of dollars in cash in exchange.  This time, however, the two men were – unbeknownst to Gutierrez – undercover agents.  

“Our U.S. Navy warehouses are meant to support our service members at home and overseas, not to serve as a piggybank for unscrupulous individuals,” said U.S. Attorney Robert Brewer. “This was an audacious crime that was even more troubling because it was committed by an insider.” Brewer praised prosecutor Michelle Wasserman and NCIS agents for their dedication to this case.

Gutierrez was paid for the stolen goods in cash and via PayPal.  Gutierrez admitted in his plea agreement that the total aggregate value of the items that he stole from the United States and resold for personal profit was $2,536,293.63. 

DEFENDANT                                               Case Number 19CR4552-W                       

Herbert Gutierrez                                            Age: 54                       San Diego, CA

SUMMARY OF CHARGES

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

Maximum penalty: 10 years’ imprisonment and $250,000 fine

AGENCY

Naval Criminal Investigative Service

 

Assistant U. S. Attorney Andrew Haden (619) 546-6961    

NEWS RELEASE SUMMARY – November 13, 2019

SAN DIEGO – Attorney General William P. Barr today announced the launch of Project Guardian, a new initiative designed to reduce gun violence and enforce federal firearms laws across the country. Specifically, Project Guardian focuses on investigating, prosecuting, and preventing gun crimes.

Reducing gun violence and enforcing federal firearms laws have always been among the Department’s highest priorities. In order to develop a new and robust effort to promote and ensure public safety, the Department reviewed and adapted some of the successes of past strategies to curb gun violence. Project Guardian draws on the Department’s earlier achievements, such as the “Triggerlock” program, and it serves as a complementary effort to the success of Project Safe Neighborhoods (PSN). In addition, the initiative emphasizes the importance of using all modern technologies available to law enforcement to promote gun crime intelligence.

“Gun crime remains a pervasive problem in too many communities across America. Today, the Department of Justice is redoubling its commitment to tackling this issue through the launch of Project Guardian,” said Attorney General William P. Barr. “Building on the success of past programs like Triggerlock, Project Guardian will strengthen our efforts to reduce gun violence by allowing the federal government and our state and local partners to better target offenders who use guns in crimes and those who try to buy guns illegally.”

“Reducing gun violence and enforcing federal firearms laws are top priorities in this district,” said U.S. Attorney Robert Brewer. “Earlier this month, we announced a 49 percent increase in cases prosecuted under the Project Safe Neighborhoods program between fiscal years 2018 and 2019.  The Project Guardian initiative gives us the framework to build upon that foundation and to broaden our impact against individuals who have acquired, possessed, or used a firearm in violation of federal law.”

 “ATF has a long history of strong partnerships in the law enforcement community,” said Acting Director Regina Lombardo. “Make no mistake, the women and men of ATF remain steadfast to our core mission of getting crime guns off of our streets. ATF and U.S. Attorneys nationwide will leverage these partnerships even further through enhanced community outreach initiatives and coordination with local, state, and tribal law enforcement and prosecutors to cut the pipeline of crime guns from those violent individuals who seek to terrorize our communities. Project Guardian will enhance ATF’s Crime Gun Intelligence, to include identifying, investigating and prosecuting those involved in the straw purchases of firearms, lying on federal firearms transaction forms, and those subject to the mental health prohibition of possessing firearms.” 

Project Guardian’s implementation is based on five principles:

1. Coordinated Prosecution. Federal prosecutors and law enforcement will coordinate with state, local, and tribal law enforcement and prosecutors to consider potential federal prosecution for new cases involving a defendant who: a) was arrested in possession of a firearm; b) is believed to have used a firearm in committing a crime of violence or drug trafficking crime prosecutable in federal court; or c) is suspected of actively committing violent crime(s) in the community on behalf of a criminal organization.
    
2. Enforcing the Background Check System. United States Attorneys, in consultation with the Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) in their district, will create new, or review existing, guidelines for intake and prosecution of federal cases involving false statements (including lie-and-try, lie-and-buy, and straw purchasers) made during the acquisition or attempted acquisition of firearms from Federal Firearms Licensees.
    
   Particular emphasis is placed on individuals convicted of violent felonies or misdemeanor crimes of domestic violence, individuals subject to protective orders, and individuals who are fugitives where the underlying offense is a felony or misdemeanor crime of domestic violence; individuals suspected of involvement in criminal organizations or of providing firearms to criminal organizations; and individuals involved in repeat denials.
    
3. Improved Information Sharing. On a regular basis, and as often as practicable given current technical limitations, ATF will provide to state law enforcement fusion centers a report listing individuals for whom the National Instant Criminal Background Check System (NICS) has issued denials, including the basis for the denial, so that state and local law enforcement can take appropriate steps under their laws.
    
4. Coordinated Response to Mental Health Denials. Each United States Attorney will ensure that whenever there is federal case information regarding individuals who are prohibited from possessing a firearm under the mental health prohibition, such information continues to be entered timely and accurately into the United States Attorneys’ Offices’ case-management system for prompt submission to NICS. ATF should engage in additional outreach to state and local law enforcement on how to use this denial information to better assure public safety. 
    
   Additionally, United States Attorneys will consult with relevant district stakeholders to assess feasibility of adopting disruption of early engagement programs to address mental-health-prohibited individuals who attempt to acquire a firearm. United States Attorneys should consider, when appropriate, recommending court-ordered mental health treatment for any sentences issued to individuals prohibited based on mental health.
    
5. Crime Gun Intelligence Coordination. Federal, state, local, and tribal prosecutors and law enforcement will work together to ensure effective use of the ATF’s Crime Gun Intelligence Centers (CGICs), and all related resources, to maximize the use of modern intelligence tools and technology. These tools can greatly enhance the speed and effectiveness in identifying trigger-pullers and finding their guns, but the success depends in large part on state, local, and tribal law enforcement partners sharing ballistic evidence and firearm recovery data with the ATF.
    
   Federal law enforcement represents only about 15% of all law enforcement resources nationwide. Therefore, partnerships with state, local, and tribal law enforcement and the communities they serve are critical to addressing gun crime. The Department recognizes that sharing information with our state, local, and tribal law enforcement partners at every level will enhance public safety, and provide a greater depth of resources available to address gun crime on a national level.  

For more information on Project Guardian, see the Attorney General’s memorandum at: https://www.justice.gov/ag/project-guardian-memo-2019/download.

Assistant U. S. Attorneys John Parmley (619) 546-7957 and Caroline Han (619) 546-6968   

NEWS RELEASE SUMMARY – November 5, 2019 

SAN DIEGO – Daniel Hector Mackinnon was sentenced in federal court today to seven years in prison for committing two politically-motivated arsons, including one that endangered the lives of children.

During today’s hearing, U.S. District Judge William Q. Hayes described Mackinnon’s conduct as “cold blooded and cowardly” and expressed concern that Mackinnon is a danger to the community. “In light of what you did, I think every day is warranted,” Judge Hayes told the defendant, referring to the length of the sentence.

According to the government’s sentencing memorandum, Mackinnon’s conviction covered two separate arsons, both occurring in the early morning hours of April 24, 2019. Investigators believe Mackinnon targeted the victims based on the nature of the business and/or their professional/political ties. Beginning early that morning, Mackinnon attempted to set fire to the La Jolla home of a prominent San Diego real estate developer. At the time of the arson, the home was occupied by two adults and three small children, all of whom were sleeping. The defendant poured an accelerant onto the door and ignited it, causing damage to the door. Investigators found remnants of a plastic water bottle, a pry bar and a bottle cap at the scene and were able to tie Mackinnon to the arson based on DNA recovered from the bottle cap. 

Mackinnon’s second arson that morning occurred at the Kearny Mesa building of Raytheon, a defense contractor that does weapons systems work for the military at the facility. Based on surveillance video, Mackinnon first drove his car into Raytheon’s building. After his car bounced back, he exited his car and opened the vehicle’s back hatch. A short while later, fire shot out, engulfing the vehicle and causing damage to the building’s exterior. Surveillance video showed Mackinnon fleeing the scene after which he drove into Mexico. A multi-agency effort of federal, state and local partners worked to identify Mackinnon and he was arrested the same day as he attempted to re-enter the United States at the Otay Mesa Port of Entry.

As set forth in the government’s sentencing memorandum, Mackinnon has previously committed politically-motivated petty crimes in the early 2000s, including remaining at the scene of a riot after being arrested at a Southern Kalifornia Anarchist Alliance May Day demonstration and “keying” a media vehicle at an environment protest.

“Fire is a dangerous and indiscriminate weapon,” said U.S. Attorney Robert Brewer. “Mackinnon’s arsons not only caused damage to a business, but also endangered the lives of small children who were asleep in their homes. Because of the quick response and savvy investigative efforts of our federal, state and local law enforcement partners, Mackinnon was quickly apprehended and his crime spree was swiftly ended.” Brewer also thanked prosecutors Caroline Han and John Parmley for working hard to keep the public safe.

“This conviction and sentence sends an important message to those who use violence to express their discontent,” said FBI Special Agent in Charge Scott Brunner. “The FBI will identify and bring to justice arsonists and other violent actors who put the safety of San Diegans at risk.”

DEFENDANT                                               Criminal Case No. 19CR1849-WQH

Daniel Hector Mackinnon                               Age 37            San Diego, CA

SUMMARY OF CHARGES

Malicious damage to building by means of fire, in violation of Title 18, U.S.C., Section 844(i).

Mandatory minimum penalty: Five years in prison

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

INVESTIGATING AGENCIES

San Diego FBI - Joint Terrorism Task Force

San Diego Police Department

Metro Arson Strike Team

U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives

U.S. Customs and Border Protection

San Diego County District Attorney’s Office

 

NEWS RELEASE SUMMARY – October 31, 2019

SAN DIEGO – A federal grand jury in San Diego returned a superseding indictment today that charges U. S. Navy servicemembers Dr. Michael Villarroel, Paul Craig, and Christopher Toups with fraud, false claims and conspiracy to defraud the United States.  The charges arise from a scheme where the defendants filed fraudulent claims to obtain unearned benefits from the Traumatic Servicemembers Group Life Insurance Program (“TSGLI”).  

According to the indictment, the TSGLI program is an insurance program that compensates servicemembers who suffer serious and debilitating injuries while on active duty.  The program is funded by fees paid directly by individual service members and the Department of Defense.  According to the superseding indictment, Dr. Michael Villarroel, a Commander in the U.S. Navy, was the medical doctor for the Explosive Ordinance Disposal Expeditionary Support Unit One  (“EOD ESU One”) from  March 2010 through May 2013.  In that capacity, Dr. Villarroel knowingly signed off on false and fraudulent TSGLI applications on behalf of multiple servicemembers that were part of or connected to EOD ESU One.  Both Christopher Toups, a former Chief Petty Officer Construction Mechanic, and Paul Craig, a former Lt. Commander in the U.S. Navy, filed fraudulent TSLGI applications.   To support their applications, each defendant submitted fabricated applications that included forged signatures and altered hospital records.  According to the superseding indictment, Craig fraudulently collected $150,000 and Toups collected at least $100,000. 

In addition to Christopher Toups, four other individuals were previously indicted in connection with this scheme.  Three of those individuals – Richard Cote, Earnest Thompson, and Kelene Meyer – have pleaded guilty to conspiracy to commit wire fraud, and as part of their plea, admitted that the conspirators defrauded the TSGLI program of nearly $2 million.   According to the plea agreement, Meyer, a former nurse in the U.S. Navy, stated that Toups, Villarroel, and she received kickbacks for creating and filing the fraudulent TSGLI applications for other U.S. Navy servicemembers.   

DEFENDANTS                                  Case Number:            18CR1674

Dr. Michael Villarroel                        Age:  47                      Coronado, California

Paul Craig                                           Age:  46                      Austin, Texas

Christopher Toups                              Age: 42                             Woodstock, GA   

SUMMARY OF CHARGES

Count 1: 18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud; Maximum Penalty 20 years in prison, $250,000 fine, forfeiture and restitution.

Counts 2-4: 18 U.S.C. § 1343, Wire Fraud; Maximum Penalty 20 years in prison, $250,000 fine, forfeiture and restitution  

Counts 5-7: 18 U.S.C. § 287, Making a False Claim; Maximum Penalty 5 years in prison, $250,000 fine  

AGENCIES

Federal Bureau of Investigation

Naval Criminal Investigative Service

Veteran Affairs for the Office of Inspector General

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

NEWS RELEASE SUMMARY – October 31, 2019

SAN DIEGO – Two years ago, the Department of Justice announced the revitalization and enhancement of Project Safe Neighborhoods (PSN), the centerpiece of the department’s violent crime reduction strategy. PSN is an evidence-based program proven effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop 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.

Throughout the past two years, the Department of Justice has partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone.   According to FBI’s 2018 Crime in the United States Report released this month, the violent crime rate decreased for the second consecutive year, down 3.9 percent from the 2017 numbers.

“The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”

“Through Project Safe Neighborhoods, we are focused on the most dangerous criminals in our community – the ones with guns,” said U.S. Attorney Robert Brewer. “We’re making a real difference, but there is always more progress to be made. Our gun-related prosecutions are up nearly 54 percent this year, which means neighborhoods are safer as a result.”

As we celebrate the two-year anniversary of the revitalized PSN program, here are some of the highlights of our PSN actions over the past year in the Southern District of California (SDCA):

Enforcement Actions

The Project Safe Neighborhoods (PSN) program operates in the SDCA primarily as a collaboration between the U.S. Attorney’s Office and the San Diego County District Attorney’s Office. Using intelligence from both local and federal law enforcement, these two prosecutorial offices (the largest two in the region) work to determine which jurisdiction, state or federal, will be able to provide the most effective prosecution forum and ultimately the greatest impact for the community.  In the past year, the PSN partnership has frequently caused the deployment of federal enforcement resources against violent offenders who might face a smaller sanction in state court. Special agents from the Bureau of Alcohol Tobacco Firearms and Explosives (ATF) or the FBI’s Violent Crime Task Force (VCTF) often lead these investigations.

• Between fiscal year 2018 and fiscal year 2019, cases designated and prosecuted by the United States Attorney’s Office under PSN rose almost 49 percent, from approximately 145 cases in 2018 to 214 cases in fiscal year 2019. Individual federal firearms prosecutions – a subset of the PSN program – rose almost 54 percent; from approximately 43 cases in 2018 to 66 cases in fiscal year 2019.  Efforts to increase prosecutions for fiscal year 2020 are already underway.  Among other initiatives, law enforcement is focusing on the prosecution of unlawful possession of firearms by people with domestic violence convictions and domestic violence restraining orders.

 

• The breadth of cases designated under PSN was also expanded between 2018 and 2019.  Four recent examples highlight the diversity of the cases being brought for federal prosecution, all aimed at making SDCA safer:

 

1. On October 17, 2019, Justin Alexander Roberts pleaded guilty in federal court for his role in a series of armed robberies throughout San Diego County. See U.S. v. Roberts, 19-CR-740-AJB.  In his plea agreement, Roberts admits that he used a firearm to rob a series of local businesses (known to local media as the “Burgundy Bandit” robbery series).  Under the terms of the agreement, Roberts faces a minimum of 21 years in prison.  Roberts is scheduled to be sentenced on January 6, 2020. 
2. On August 5, 2019, Jose Hernandez, aka “Chapo,” a member of the Otay River Bottom Locos gang, was sentenced to 30 years in federal prison for his aggravated role in a drug distribution conspiracy as well as his participation in an attempted armed robbery ordered by the Mexican Mafia. See U.S. v. Hernandez, et al, 18-CR-3424-LAB; 18-CR-4217-LAB.  More information about the Hernandez case can be found here.
3. On June 17, 2019, Obediah Breer, an Escondido resident and member of the Hell’s Angels motorcycle gang, was sentenced to 12 years in prison for distributing methamphetamine and possessing a firearm. See U.S. v. Roberts, 18-CR-4624-LAB.  After Breer was alleged to have brandished a firearm during a traffic encounter, state and federal prosecutors agreed that his case would be prosecuted federally.  More information about the Breer case can be found here. 
4. Brandon Lockwood and Alex Woods were both sentenced to federal prison after pleading guilty to selling a stolen vehicle, selling methamphetamine, and trafficking firearms in Vista, California. See U.S. v. Lockwood, et. al., 18-CR-5575-AJB.  The Lockwood case was one of three cases prosecuted federally as part of a 2018 undercover collaboration between ATF, the San Diego County Regional Auto Theft Task Force (RATT), and the San Diego County District Attorney. See also 19-CR-1097-JM; 19-CR-1210-GPC.

 

Community Partnerships

The U.S. Attorney’s Office (USAO) in the Southern District of California furthers PSN’s prevention mission by convening stakeholders, forging diverse partnerships, providing mentors, and using the following novel approaches to reduce violent crime:

• Because youth are often groomed and recruited by gangs before middle school, SDCA partnered with community groups as well as county health, local law enforcement and school officials to launch “Success Agents,” an innovative program that offers at-risk 4th graders at Porter Elementary mentors and wrap-around support from 4th through 8th grade. A USAO-led team meets weekly with Success Agents kids, providing interactive workshops to improve decision-making, foster relationships and academic achievement, and expand horizons. 

 

• The SDCA USAO coordinates an eight-week Project Lead program in targeted elementary schools in neighborhoods particularly affected by gangs and violent crime.  The team’s efforts significantly expanded youth education on decision-making and refusal skills, preparing more than 2,000 vulnerable fifth graders to make smart decisions when asked to join gangs, use drugs or alcohol, tag a building, or skip school. The program also builds strong relationships between students and state and federal law enforcement agents from many agencies, including the U.S. Attorney’s Office, U.S. Customs and Border Protection, the U.S. Secret Service, ATF, DEA, Homeland Security Investigations, IRS, City Attorney’s Office and U.S. Probation.   

 

• The USAO participates in the city’s creative Community Assistance Support Team (CAST), a stakeholder group designed to curb gang violence by partnering police with former gang and community members. Members work together immediately after shootings to prevent retaliation and escalation.  Through CAST, USAO personnel meet regularly with police officers, Deputy Sheriffs, community activists, local pastors and community leaders to review violent incidents, discuss resources and needs, share information, and solve problems.

 

Improvements to Community Safety

• For the second consecutive year, the estimated number of violent crimes in the nation decreased when compared with the previous year’s statistics, according to FBI figures released earlier this month. In 2018, the number of violent crimes was down 3.3 percent from the 2017 number.

 

• The 2018 statistics also show the estimated rate of violent crime was 368.9 offenses per 100,000 inhabitants. The violent crime rate fell 3.9 percent when compared with the 2017 rate.

 

• In February 2018, it was widely reported that San Diego had achieved its lowest crime rate in the past 49 years.  On September 26, 2018, local news outlets reported that San Diego had the lowest violent crime rate of America’s biggest cities last year.  In May 2019, SANDAG reported that the 2018 violent crime rate (3.41) for the San Diego region remained unchanged from 2017 and was the fourth lowest in the past 39 years.  The same report also detailed that the number of robberies and aggravated assaults with a firearm were both down from 2017 to 2018. 

 

These enforcement actions and partnerships are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.

In the Southern District of California, the PSN program is led by the Violent Crime and Human Trafficking (VCHT) Section.  Formed in 2019, by U.S. Attorney Robert Brewer, 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 also oversees the Southern District of California Coordinators for Human Trafficking and Project Safe Childhood. The VCHT Section 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 Jaclyn Stahl (619) 546-8456 and Fred Sheppard (619) 546-8237

NEWS RELEASE SUMMARY – October 29, 2019

SAN DIEGO – Local attorney William David Turley pleaded guilty in federal court today to enticing and coercing a female to engage in prostitution.

According to his plea agreement, on or about April 30, 2018, Turley began communicating with an adult female victim whom he met on the website sugardaddymeet.com. Turley and the victim discussed entering into a “mutually beneficial relationship,” meaning that Turley would provide the victim with financial support and the victim would provide companionship for and engage in sexual acts with Turley.

On or about May 3, 2018, Turley persuaded, induced, and enticed the victim to take a flight from a city in California to Las Vegas, Nevada to meet with him. Turley paid for the victim’s flight and other travel expenses. At the time the victim boarded the flight in California, she understood that she was traveling to Las Vegas to engage in sexual acts with Turley in exchange for monetary compensation. In Las Vegas, Turley provided the victim with between $1,500 and $1,800 in cash, and Turley and the victim engaged in sexual intercourse.

The plea agreement also states that on or about May 12, 2018, Turley began communicating with the minor female victim via sugardaddymeet.com. In conversations with the minor victim, they discussed that she was 18 years old. But he was aware that she was a high school student, that she could not meet on weekends because she was grounded, and that her parents had taken her cellphone away due to poor performance in school.

On or about May 15, 2018, the minor victim walked from her high school across the street to a library where Turley was waiting. Turley took the minor victim to a Boba tea shop nearby.

On or about May 16, 2018, Turley met the minor victim at the library after school and drove her to a store where Turley purchased the minor victim a cellphone. Turley then drove the minor victim a short distance, parked the car, and engaged in a sex act with the minor. The victim told Turley she wanted to stop and needed to get home. Turley gave the minor victim $300.

U.S. Attorney Robert Brewer praised the FBI, members of the San Diego Human Trafficking Task Force and prosecutors Jaclyn Stahl and Fred Sheppard for their important work. “We will do everything we can to protect victims of sex crimes and seek justice on their behalf,” Brewer said. “We are especially committed to keeping children out of harm’s way. Prosecuting sex trafficking cases is a top priority.”

“Human trafficking and sex crimes involving our children cannot be tolerated,” said FBI Special Agent in Charge Scott Brunner. “The FBI will continue to work tirelessly to reveal these horrible crimes and bring safety and closure for the victims and our communities.”

Turley is scheduled to be sentenced before U.S. District Judge Anthony J. Battaglia on March 2, 2020 at 9 a.m.

DEFENDANT                                               Case No. 18-CR-4574-AJB

William David Turley                                     Age: 61                       San Diego, CA

SUMMARY OF CHARGES

Enticing and Coercing a Female to Engage in Prostitution, in violation of 18 U.S.C. § 2422(a).

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

INVESTIGATING AGENCIES

Federal Bureau of Investigation

San Diego Human Trafficking Task Force

Assistant U. S. Attorneys Blanca Quintero and Daniel Silva (619) 546-7118

NEWS RELEASE SUMMARY – October 25, 2019

SAN DIEGO – Manuel Reynoso Garcia was sentenced today by U.S. District Judge William Q. Hayes to 78 months in prison for his role as a leader in an international money laundering organization that laundered more than $19 million in narcotics proceeds from the United States to Mexico. 

The multi-year investigation led by the FBI’s Cross Border Violence Task Force targeted Reynoso as one of the key leaders of the Tijuana- and San Diego-based money laundering organization. Reynoso was the last of eight former members of the criminal organization sentenced.

Earlier this year, Judge Hayes sentenced Reynoso’s co-defendants to prison, including Estefania Plascencia Ponce to 57 months; Carlos Ballesteros Robles to 43 months; Gilberto Beltran Salazar to 46 months; Perla Alejandra Perez Guirado to 30 months; Joaquin Enrique Ramirez Calva to 37 months; Humberto Ruiz Bernadac to 24 months; and Luis Fernando Figueroa to time served.  One final defendant, Manuel Alejandro Garcia remains a fugitive in Mexico.   

According to the plea agreement and other public records, the money laundering organization was composed of a network of co-conspirators who coordinated the pick up, deposit, laundering, and transfer of millions of dollars of narcotics proceeds to Mexico-based drug trafficking organizations to include the Sinaloa Cartel. The organization used sophisticated methods to avoid law enforcement detection, such as encrypted messaging applications, and employed shell corporations complete with fictitious websites in an attempt to disguise their criminal activity as legitimate business.     

The organization recruited individuals to serve as “funnel account holders” and transported them to bank branches in San Diego to open personal bank accounts. These funnel bank accounts were typically opened by the funnel account holders at Wells Fargo Bank or other domestic U.S. banks.  The funnel account holders were primarily young adults between the ages of 18 and 23 who attended a university in Tijuana, Mexico.

Other members of the money laundering organization, known as “couriers”, travelled to San Diego, Los Angeles, Chicago, Boston, New Jersey, Philadelphia, Cincinnati, New York City and other cities throughout the United States to pick up and transport large amounts of bulk cash that ranged between $150,000 to $600,000 in narcotics proceeds.  Couriers often met associates in private residences or public places such as parking lots, retail stores, and hotel rooms. The cash was typically concealed in shopping bags, duffel bags or shoeboxes.

Once in possession of the bulk cash, the couriers deposited the cash in increments of $30,000 to $45,000 into the funnel bank accounts controlled by the money laundering organization.  The funds were then wire  transferred from these United States-based funnel bank accounts to a series of Mexico-based shell companies also controlled by the money laundering organization. Once in Mexico, the funds were transferred to representatives of the Sinaloa Cartel. 

During the case, federal agents employed extensive surveillance, undercover operations, witness interviews and bank records analysis to collect evidence against the organization. Key operations included the surveillance of members of the organization as they picked up drug proceeds in amounts as large as $200,000 in Cincinnati, Ohio; New York; and San Diego.  The FBI also seized a large amount of bulk cash from defendant Joaquin Ramirez Calva in Chula Vista, California, and seized more drug proceeds following the surveillance of a bulk cash delivery to Reynoso in a McDonald’s parking lot in Bonita, California. 

“By tracking and seizing drug money, we are hitting the cartels where it hurts,” said U.S. Attorney Robert Brewer. “Our aim is to prevent drug-related violence and overdoses, and denying the cartels the fruits of their illegal labor is an important part of our legal playbook. Thanks to prosecutors Blanca Quintero and Daniel Silva and our partners at FBI and IRS, we are impacting the operations of the Sinaloa Cartel on the way to our goal.”

“Drug trafficking and money laundering go hand-in-hand,” said FBI Special Agent in Charge Scott Brunner. “This case shows that stopping the flow of drug money to the cartels disrupts these dangerous criminal organizations.  The FBI will use every investigative tool to keep illegal narcotics and dangerous crime from poisoning our communities.”  

“Drug cartels misuse our financial institutions to launder their illicit proceeds, by using shell companies and exploiting young students to conceal their illegal activities. Reynoso was the co-leader of this money laundering organization. His guilty plea and subsequent sentence, in this multi-year investigation, demonstrates IRS Criminal Investigation's determination to identify and bring to justice those that would corrupt our banking system to launder illegal narcotics proceeds,” said Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation.

This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise of federal, state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking, and money laundering organizations and enterprises.  This case is being prosecuted by Assistant U.S. Attorneys Blanca Quintero and Daniel Silva.

DEFENDANT                Case Number 17-CR-2203-WQH

Manuel Reynoso Garcia                     Age: 64           Tijuana, Mexico

Estefania Plascencia Pone                  Age: 36           Tijuana, Mexico

Carlos Ballesteros Robles                   Age: 28           Tijuana, Mexico

Perla Alejandra Perez Guirado           Age: 27           Tijuana, Mexico

Joaquin Enrique Ramirez Calva         Age: 30           Tijuana, Mexico

Gilberto Beltran Salazar                     Age: 31           Tijuana, Mexico

Humberto Ruiz Bernadac                   Age: 27           Tijuana, Mexico

Luis Fernando Figueroa                      Age: 30           Tijuana, Mexico

SUMMARY OF CHARGES*

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

Maximum penalty: 20 years’ imprisonment and $500,000 fine

AGENCIES

Federal Bureau of Investigation’s San Diego Cross Border Violence Task Force

IRS Criminal Investigations

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

Assistant U. S. Attorneys Shane Harrigan (619) 546-6981 and Caroline Han (619) 546-6968   

NEWS RELEASE SUMMARY – October 25, 2019

SAN DIEGO – Canadian national and former San Diego resident Abdullahi Ahmed Abdullahi made his initial appearance in federal court today following his extradition to the United States on charges that he conspired with others to provide material support to terrorists engaged in violent activities in Syria.

Abdullahi is charged in a two-count indictment with conspiring with several Canadian and U.S. citizens, including Douglas McCain (“Douglas”), the first known American who died fighting for the Islamic State of Iraq and al-Sham (ISIS) on or about August 25, 2014. Douglas resided in San Diego prior to departing the United States for Turkey, and eventually, Syria.

“Terrorist networks like ISIS cannot exist without supporters,” said U.S. Attorney Robert Brewer. “Protecting Americans from terrorists is our highest priority, and we will work hard to bring justice to those who provide material support to foreign terror organizations. I would like to thank the prosecutors, the FBI, our Joint Terrorism Task Force and our international law enforcement partners for all that they do to keep our communities safe.”

“Today’s announcement should serve as a warning to those who have traveled, attempted to travel, or support those fighting on behalf of ISIS. The FBI remains steadfast in ensuring they face justice," said FBI Special Agent in Charge Scott Brunner. “I commend San Diego's Joint Terrorism Task Force (JTTF) and our interagency and international partners for their committed work which resulted in Abdullahi returning to the United States to answer for the crimes he is accused of committing.”

The Abdullahi indictment alleges that from in or about August 2013 through in or about November 2014, Abdullahi conspired with Douglas and other individuals to provide personnel and money to individuals engaged in terrorist activities in Syria, including the killing, kidnapping and maiming of persons.  Specifically, the indictment alleges that Abdullahi facilitated the travel of at least three Canadian nationals and two U.S. citizens to Syria to join and fight for ISIS, all of whom were subsequently reportedly killed fighting for ISIS. 

As alleged in the indictment, in order to get money to fund travel to and fighting with terrorists in Syria, Abdullahi’s co-conspirators encouraged others to commit crimes against the “kuffar” (an Arabic term meaning infidels or non-believers), such as theft. In furtherance of this material support conspiracy, the indictment alleges that on January 9, 2014, prior to the travel of Douglas and a second American, Abdullahi committed an armed robbery of a jewelry store in Edmonton, Alberta, Canada, in order to finance the travel of Douglas and other members of the conspiracy to Syria.  Thereafter, Abdullahi wired and caused others to wire money to other members of the conspiracy in the United States -- including approximately $3,100 to Douglas. The money paid for Douglas and the second individual to travel from the United States to Turkey. They later moved into Syria and engaged in terrorist activities, alongside other co-conspirators, including North Americans with whom Abdullahi maintained ties.

Additionally, members of the conspiracy, including Abdullahi, wired and caused money to be wired to third-party intermediaries in Gaziantep, Turkey (located approximately 40 miles from the Syrian border) for the purpose of supporting members of the conspiracy fighting and engaging in terrorist activity in Syria, including the killing, kidnapping, and maiming of persons. 

On March 10, 2017, a federal grand jury in the Southern District of California returned a two-count sealed indictment charging Abdullahi with conspiring to provide, and providing, material support to terrorists.  On September 15, 2017, pursuant to an extradition request by the United States, Canadian authorities arrested Abdullahi. Abdullahi was detained in Canadian custody without bail, pending extradition.  Canadian authorities surrendered Abdullahi to the United States yesterday.

In a related case, Marchello Dsaun McCain, a convicted violent felon and the brother of Douglas, was sentenced in 2018 in federal court to 10 years in prison for his illegal possession of a cache of firearms and body armor and making false statements to federal agents involving international terrorism.

At today’s hearing, prosecutors moved to detain Abdullahi based on risk of flight and danger to the community. A detention hearing will be held on October 29 at 10:45 a.m. before U.S. Magistrate Karen S. Crawford.

The U.S. Attorney’s Office wishes to thank the Department of Justice’s Office of International Affairs and our Canadian law enforcement partners, including the Alberta Crown Prosecution Service, the Public Prosecution Service of Canada, and the Canada Crown Prosecutor’s Office, for their extraordinary work in the process of securing Abdullahi’s extradition and return to the United States to face charges. 

DEFENDANT                                               Criminal Case No. 17CR0622-W

Abdullahi Ahmed Abdullahi                          Age: 34                       Edmonton, Alberta, Canada  

SUMMARY OF CHARGES

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

Maximum penalty: 15 years’ imprisonment and $250,000 fine

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

Maximum penalty: 15 years’ imprisonment and $250,000 fine.

INVESTIGATING AGENCIES

San Diego Joint Terrorism Task Force

Federal Bureau of Investigation

Federal Air Marshal Service

Department of Homeland Security, Homeland Security Investigations

Department of Homeland Security, U.S. Border Patrol

 

 

Assistant U. S. Attorney Michael A. Deshong (619) 546-9290  

NEWS RELEASE SUMMARY – October 24, 2019

SAN DIEGO – Pacific Beach resident Maya Kol pleaded guilty in federal court today, admitting that he sold fentanyl powder that caused the death of one man and sent another to the hospital over Labor Day weekend in September 2018. A third man - Kol’s source of the fentanyl - also fatally overdosed that weekend from the same batch. 

Kol, a Cambodian national living illegally in San Diego, admitted in his plea agreement that he purchased the fentanyl powder believing it to be cocaine.  However, after he sampled the powder he noticed it tasted it different and then became woozy and nearly lost his balance from the effects of it.  Despite his own troubling experience with the powder, Kol sold it to others and told them it was cocaine. 

According to his plea agreement, on September 7, 2018, Kol met three individuals, J.E., J.H., and L.S., and delivered to them one-half gram of fentanyl powder and represented it as cocaine.  Several hours later L.S. contacted Kol asking for help.  Kol arrived to J.H. and L.S.’s apartment to find J.E. and J.H. non-responsive.  When Kol realized authorities would be coming to the scene, he went back to his home and flushed his remaining fentanyl powder down the toilet.  J.E. died from the fentanyl powder Kol sold to him. J.H. had to be administered Narcan (used to treat opioid overdoses) and rushed to the hospital, but survived the ordeal.  L.S. was admitted to the hospital the following day for lingering symptoms.  A subsequent search of Kol’s residence uncovered more than $5,000 in cash, scales and other indicia of drug sales.

J.E.’s death was one of three deaths that occurred in Pacific Beach over Labor Day weekend in 2018, including the individual who sold the fentanyl powder to Kol. Kol is not charged with the other deaths.         

“Another life is gone because of fentanyl and the greed of traffickers,” said U.S. Attorney Robert Brewer. “This dealer knew he was selling a dangerous drug and did it anyway. As the opioid epidemic rages across the nation, we will do everything we can to save lives, and that includes pursuing charges against dealers of the poison that is killing people every single day in this country.”

“Not only did Mr. Kol’s greed and selfishness cost a life, but he tried to cover up his actions and destroy the weapon that killed J.E. – in this case fentanyl,” said DEA Special Agent in Charge Karen Flowers.  “A message to the dealers of death: DEA will find out who you are and we will bring you to justice. You cannot cover up your crimes and you will pay for taking the life of another human being.”

Kol is scheduled to be sentenced on March 6, 2020 before U.S. District Judge Jeffrey T. Miller. 

This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, and multiple law enforcement agencies to investigate and prosecute the distribution of dangerous illegal drugs that result in overdose deaths.

Many opioid addicts start their addiction with legitimate prescription drugs. Drug cartels, looking to capitalize on the opioid epidemic, are making counterfeit prescription pills using deadly fentanyl.

Fentanyl-related deaths are rapidly climbing to unprecedented levels. The San Diego County Medical Examiner’s Office reports there have been 89 cases of fentanyl-related deaths so far in 2019, with almost three months left in the year.

Should this trend continue for the remainder of 2019, the death toll could potentially reach 120, which would amount to a 33 percent increase over last year’s total of 90 deaths, and a staggering 700 percent hike over five years ago when there were 15.

In July 2018, Narcotics Task Force Team 10 was created to address drug overdose deaths in San Diego County.  Team 10 led the investigation into the cluster of fentanyl drug overdoses in Pacific Beach in September 2018.  The victim was 47 years old and he left behind his wife.

DEFENDANTS                                            Case Number 19cr1277-JM

Maya Kol                                                        Age: 41                       Pacific Beach, CA

SUMMARY OF CHARGES

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

Maximum Penalty: 20 years’ imprisonment

AGENCIES

Drug Enforcement Administration

San Diego Police Department

Homeland Security Investigations

California Department of Health Care Services

Federal Bureau of Investigation

San Diego County District Attorney’s Office

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

NEWS RELEASE SUMMARY – October 22, 2019

HONOLULU, Hawaii – Former Honolulu Deputy Prosecutor Katherine Kealoha pleaded guilty in federal court to bank fraud, aggravated identity theft and drug charges, while her husband, former Honolulu Police Chief Louis Kealoha, pleaded guilty to bank fraud, in separate hearings today.

The pleas resolve all outstanding charges that were pending against the Kealohas following their corruption conviction in another case by a federal jury in June 2019. U.S. District Judge J. Michael Seabright’s acceptance of the guilty pleas means the Kealohas will not face a second trial in January 2020 on the bank fraud charges, and Katherine Kealoha will not face a third trial in May 2020 on the drug charges.

In June 2019, the Kealohas were convicted by a federal jury for abusing their power by conspiring with two police officers to frame Katherine Kealoha’s uncle, Gerard Puana, for a crime he did not commit in a desperate attempt to discredit his claim that the Kealohas stole a substantial amount of money from him and his 100-year-old mother – Katherine’s own grandmother – Florence Puana.

As part of the guilty pleas today, the Kealohas also entered into sentencing agreements in the case where the jury found them guilty of conspiracy to frame the uncle.  In the sentencing agreements, the Kealohas agreed to waive their appellate rights.  The parties also agreed to recommend that the Court order the Kealohas to pay $289,714.96 in restitution to the victims of their fraud, including $46,261.00 to Gerard Puana and $243,453.9 to Florence Puana.                             

In her plea agreements today, Katherine Kealoha resolved two cases with admissions that she was involved in an elaborate bank fraud scheme and a drug trafficking conspiracy with her brother, anesthesiologist Rudolph B. Puana, who wrote medically unnecessary prescriptions for controlled substances such as oxycodone and fentanyl in order to resell them. When the brother came under police suspicion, Katherine Kealoha used her law enforcement position to take control of the investigation and ensure that she and her brother were not prosecuted. Moreover, Katherine Kealoha also admitted that she obtained fraudulent loans from several banks and credit unions and stole more than $165,000 inheritance of two children, Ransen Taito and Ariana Taito, for whom she served as financial guardian. In her plea agreement, the parties agreed to recommend that the Court order Katherine Kealoha to pay restitution $165,269.82 to the Taitos and to forfeit $63,476.97 from the sale of the Kealohas’ home.

Both Kealohas admitted in plea agreements that they defrauded banks with elaborate schemes in order to obtain loans to fund their extravagant lifestyle. Louis Kealoha’s plea agreement said the couple spent more than $591,000, which was derived from: (1) stolen proceeds from a reverse mortgage obtained by Florence Puana; (2) stolen funds belonging to the Taito children; and (3) loan proceeds obtained through banks and credit unions. In his plea agreement, Louis Kealoha agreed that the Court order him to pay $165,269.82 to the Taitos and to forfeit $63,476.97 from the sale of the Kealohas’ home.

 The Court will reset all of the sentencing hearings at a status hearing scheduled for next week. 

DEFENDANTS                                                                   

Katherine P. Kealoha                          Age: 49                       Honolulu, Hawaii

Louis M. Kealoha                               Age: 59                       Honolulu, Hawaii

SUMMARY OF CHARGES

Katherine Kealoha                           CR No. 17-00582-JMS-WRP

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

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

Obstruction of Official Proceeding, in violation of 18 U.S.C. § 1512(c)(2)

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

Katherine Kealoha                           CR No. 18-00068-JMS-WRP

Bank Fraud, in violation of 18 U.S.C. § 1344

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

Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A

Maximum Penalty: Mandatory term of imprisonment of two years, to be served consecutive to the sentence imposed for any underlying charge; fine of up to $250,000

Katherine Kealoha                           CR No. 19-00015 JMS-WRP

Misprision of Felony, in violation of 18 U.S.C. § 4

Maximum Penalty: Three years in prison; fine of up to $250,000;

Louis Kealoha                                   CR No. 17-00582 JMS-WRP

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

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

Obstruction of Official Proceeding, in violation of 18 U.S.C. § 1512(c)(2)

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

Louis Kealoha                                   CR No. 18-00068-JMS-WRP

Bank Fraud, in violation of 18 U.S.C. § 1344

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

AGENCY

Federal Bureau of Investigation

Honolulu, Portland, and San Diego Divisions

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

NEWS RELEASE SUMMARY – October 16, 2019

SAN DIEGO – Dr. Roger A. Kasendorf, an osteopathic physician practicing in La Jolla, agreed to pay $125,000 to resolve allegations that he illegally prescribed opioids to his patients. The highly addictive and frequently abused opioids he prescribed included fentanyl, hydromorphone, oxymorphone, and oxycodone.

In response to the Justice Department’s focus on combatting the opioid epidemic, the Drug Enforcement Administration (DEA) and the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) investigated Dr. Kasendorf’s prescribing practices.  This investigation arose from data analytics tools which allow the Department of Justice to perform a variety of functions, including identifying statistical outliers, such as which doctors prescribe the highest opioid dosages and which doctors prescribe combinations of opioids and other drugs known to increase the risk of addiction, abuse, and overdose. Based on the investigation, the United States contends that Dr. Kasendorf wrote prescriptions for opioids, including fentanyl, that were not issued for a legitimate medical purpose and while not acting in the usual course of his professional practice in violation the Controlled Substances Act and the False Claims Act.

“Opioid addiction often begins with doctors prescribing excessive amounts of pain killers,” said U.S. Attorney Robert S. Brewer, Jr.  “While we continue to prosecute criminals who supply opioids on the dark web, we will also hold doctors accountable when they write illegitimate and unnecessary opioid prescriptions.  This settlement demonstrates our commitment to combatting the opioid epidemic on all fronts.”

“Whether you are a patient, a prescriber, a distributor, a manufacturer or a regulator, you play an important role in utilizing opioids correctly and pursuant to the law,” said DEA Special Agent in Charge Karen Flowers.  “When a DEA registrant operates outside the law, there are consequences.  In this instant, a civil fine.”  

The Centers for Disease Control and Prevention (CDC), the American Academy of Pain Medicine, the American Pain Society, state agencies and medical boards, and other medical literature provide guidance on appropriate practices when prescribing opioids.  One common tool is for health care providers to determine the Morphine Milligram Equivalent (MME, also commonly referred to as Morphine Equivalent Dose or MED) of prescribed opioids.  MME is a uniform scale used to determine daily opioid dosage by using an equivalency factor to calculate a dose of morphine that is equivalent to the prescribed opioid.  The CDC recommends primary care clinicians who prescribe opioids for chronic pain outside of active cancer treatment, palliative care, or end‑of‑life care should avoid increasing opioid daily dosage over 90 MME or carefully justify a decision to titrate daily dosage to over 90 MME.  Prescribers should also seek to avoid prescribing opioid pain medication in combination with benzodiazepines (e.g., Xanax, Valium, Klonopin) when possible, and should consider whether the benefits outweigh the risks of combining opioids with other depressants (i.e., muscle relaxants and sleep medications).

Report illicit pharmaceutical activities and prescription abuse to DEA at 877-RX-Abuse (877‑792‑2873).  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the U.S. Department of Health and Human Services at 800‑HHS-TIPS (800-447-8477).

This matter was handled by Assistant U.S. Attorney Dylan M. Aste of the U.S. Attorney’s Office for the Southern District of California, with the assistance of agents and investigators from the DEA and HHS‑OIG.

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

Assistant U. S. Attorney Michael A. Deshong (619) 546-9290  

NEWS RELEASE SUMMARY – October 16, 2019

SAN DIEGO – Drug dealer Trevon Antone Lucas was sentenced in federal court today to 15 years in prison for selling the counterfeit oxycodone pills containing deadly fentanyl that caused the overdose death of a La Jolla resident in June of 2018.    

Lucas, a resident of Highland, California, pleaded guilty in June to Distribution of Fentanyl Resulting in Death. In his plea, he admitted that he posted online advertisements for the illegal sale of prescription pills. The investigation revealed that Lucas was warned about the danger of the pills he was selling on two separate occasions. In late 2017, Lucas was warned that the pills he was selling were counterfeit and contained fentanyl that was much stronger than oxycodone pills.  Then, just two months prior to the victim’s death in mid-2018, Lucas was explicitly warned that counterfeit pills containing fentanyl had caused the overdose of a San Diego resident.  Lucas was undeterred and continued to sell the counterfeit pills.

“Trevon Lucas knew the pills he was selling were deadly, but he sold them anyway, showing a remarkable disregard for the safety and well-being of his fellow human beings,” said U.S. Attorney Robert Brewer. “His greed transcended his humanity, and for that he will serve a very long sentence.” Brewer praised prosecutor Michael Deshong and federal, state and local investigators who worked hard to protect the community from the scourge of opioids and achieve justice for the victim and his family.

“Our hearts go out to the victim’s family,” said DEA Special Agent in Charge Karen Flowers. “The potential of their loved one will never be realized; but their hopes, dreams, love and laughter will forever be remembered. Earthly justice is a small measure of what awaits those who prey on the weak out of greed.”  Flowers further stated, “We at DEA are proud to be part of bringing justice to families scarred by the scourge of drug trafficking. We are relentless and we will not shy from putting murderers out of business.  No matter how hard it is or how long it takes, DEA will always be in pursuit until we can close the case and look at the victim’s loved ones and say, justice is done.”

According to Lucas’ plea agreement, on the evening of June 29, 2018, Lucas met the victim and sold him nine “blues,” a slang term for prescription oxycodone pills, for $240.  The “blues” purchased from Lucas were counterfeit and contained deadly fentanyl—the same pills that Lucas had previously been warned about selling.  The victim died after consuming the pills.  The victim’s mother found him dead in his room the following morning.      

Three other individuals, Cenclair Marie Fields, Kevin Vandale Chandler and Donovan Adontas Carter were  charged in the same indictment with conspiring with Lucas to distribute prescription hydrocodone pills.  All three have since pleaded guilty and been sentenced. 

This case is the result of ongoing efforts by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, and multiple law enforcement agencies to investigate and prosecute the distribution of dangerous illegal drugs that result in overdose deaths.

Many opioid addicts start their addiction with legitimate prescription drugs. Drug cartels, looking to capitalize on the opioid epidemic, are making counterfeit prescription pills using deadly fentanyl.  More than 399,000 people died from opioid overdoses, including prescription and illicit opioids, from 1999–2017.

In July 2018, Narcotics Task Force Team 10 was created to address drug overdose deaths in San Diego County.  Team 10’s first investigation was the fentanyl drug overdose of this La Jolla man on June 30, 2018.  The victim was 37 years old and he left behind his mother and brother.  He had recently completed his bachelor’s degree in radiological sciences and was preparing to fly to the East Coast for a specialized program in dosimetry at the time he passed. 

DEFENDANTS                                            Case Number 18cr4224-CAB         

Trevon Antone Lucas                                     Age: 23                       Highland, CA

SUMMARY OF CHARGES

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

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

AGENCIES

Drug Enforcement Administration

San Diego Police Department

Homeland Security Investigations

California Department of Health Care Services

Federal Bureau of Investigation

San Diego County District Attorney’s Office

 

Assistant U.S. Attorney Andrew Young (619) 546-7981 and Assistant U.S. Attorney Meghan Heesch (619) 546-9442

SAN DIEGO – Hardev Panesar of San Diego was sentenced today in federal court by U.S. District Judge Gonzalo P. Curiel to 91 months in custody for his leadership role in an immigration fraud scheme.

According to his plea agreement, Panesar conspired with others, including Rafael Hastie and Gurdev Singh, to induce unauthorized immigrants to pay money based on false and fraudulent claims that the defendants could secure immigration status for the victims and their families. Panesar misled the victims into believing that he could obtain immigration documents or legal immigration status by pretending to be an agent with the Department of Homeland Security. Panesar wore a DHS jacket and showed purported official credentials to his victims.

The plea agreement outlined several dates in 2016 where Panesar successfully obtained thousands of dollars by pretending to be a DHS official. The money paid by the victims totaled over $2.5 million, which was converted to the personal use and benefit of Panesar and his co-defendants.  According to statements made at sentencing, Panesar also lost a significant portion of the money he stole from victims as a victim himself in a Nigerian “advanced fee scheme.” At a prior sentencing hearing, one of the victims testified in court that his family gave Panesar and Gurdev Singh approximately $250,000 with the hopes of receiving green cards—a devastating financial loss that contributed to the depression and eventual suicide of a family member.

Panesar’s sentence includes a six-month custodial sentence for an additional charge of Failure to Appear. On June 21, 2018, while released on bond, Panesar fled to Mexico and failed to appear at a Motion Hearing before Judge Curiel set for June 22, 2018. He was captured in Mexico and deported to the United States approximately six weeks later.

Earlier this year, Panesar’s co-defendants were sentenced by Judge Curiel. Rafael Hastie was sentenced to 46 months in custody and ordered to pay $942,000 in restitution to the victims. Gurdev Singh was sentenced to 27 months in custody and ordered to pay $392,850 in restitution to the victims. The Court ordered Panesar to pay approximately $2.5 million in restitution to his victims. 

Additionally, last week, former HSI supervisor Johnny Martin was found guilty by a federal jury in a related case for the false statements he made to the FBI in connection with their investigation into this immigration fraud scheme. Martin will be sentenced on January 17, 2020.

In imposing the sentence, Judge Curiel described Panesar’s scheme as “one of the more serious cases this Court has handled” in recent years.  “Mr. Panesar preyed on the most vulnerable…these are people who wanted to live and experience the American dream. . . . Mr. Panesar pretended he could be the one who provided the American dream.” Judge Curiel added, “This offense is serious because of the heartlessness and callousness required to perpetuate this fraud on so many for so long.”

“Pretending to be a legitimate government agent to scam hundreds of individuals of their life savings undermines the crucial trust we bestow upon our law enforcement partners,” said U.S. Attorney Robert S. Brewer, Jr. “When that trust is betrayed for personal enrichment, our office will aggressively prosecute the fraudsters and seek restitution for the victims.”

“Panesar’s fraud scheme was particularly egregious as he attempted to use the veil of a U.S. government official to obtain millions of dollars from those trying to obtain legal status in the United States,” said Scott Brunner, FBI Special Agent in Charge. “Falsely claiming to be a federal official degrades the integrity of the system and therefore has serious consequences. Today, Panesar’s destructive scheme has been shut down, he has a federal conviction, and must serve a prison sentence as a result of his actions.”

DEFENDANTS                                Case Numbers:           17CR1371-GPC, 18CR3229-GPC

Hardev PANESAR                             Age: 71                       El Cajon, California

Rafael HASTIE                                  Age: 49                       Tijuana, Mexico

Gurdev SINGH                                  Age: 58                       Bakersfield, California                      

SUMMARY OF CHARGES

17CR1371-GPC

Count 1: 18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud

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

Counts 2-4: 18 U.S.C. § 1343, Wire Fraud;

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

Counts 5-10: 18 U.S.C. § 912, False Personation of an Officer or Employee of the United States;

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

Count 11: 31 U.S.C. § 5324(a)(3), Structuring Domestic Financial Institutions;

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

18CR3229-GPC

Count 1: 18 U.S.C. § 3146(a)(1), Failure to Appear After Pre-Trial Release;

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

AGENCY

Federal Bureau of Investigation

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

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

 

Assistant U. S. Attorneys Timothy D. Coughlin (619) 546-6768 and Zachary J. Howe (619) 546-8693

NEWS RELEASE SUMMARY – October 15, 2019

SAN DIEGO – Three men were indicted by a federal grand jury today on charges that they were members of a migrant-smuggling operation based in Tecate, Mexico, that recruited juvenile drivers from San Diego high schools.

Cristian Hirales-Morales, Marcos Julian Romero and Sergio Anthony Santivanez, all U.S. citizens, were arraigned in federal court this afternoon before U.S. Magistrate Judge William V. Gallo.

According to the indictment, defendant Hirales is alleged to be the leader of the organization that smuggled undocumented migrants across the U.S.-Mexico border to various motels in the greater Los Angeles area. Once at these motels, Hirales’ top lieutenants, including Romero and Santivanez, held the migrants until they received payments - usually $8,000 per person - from the migrants’ sponsors. The organization used juveniles and young adults from local high schools as load drivers and recruited drivers using internet platforms like Craigslist. Hirales, based in Tecate, handled Mexico-based arrangements with migrants and smugglers. He also coordinated illegal crossings into the United States, tracked load drivers using live-location phone apps, and guided load drivers to the waiting migrants by sending pin drops with exact Google Maps coordinates, among other things, the indictment said. Once load drivers found the undocumented migrants, Hirales turned over the smuggling to his U.S.-based co-conspirators, who scouted border patrol checkpoints and handled smuggling fees at Los Angeles area motels.

Romero, allegedly a top lieutenant in the organization, recruited drivers and sent their personal information, such as photos of their driver’s licenses and vehicles, to Hirales and the U.S.-based organizers and managers, the indictment said. Romero also tracked smuggling events from the border and directed the payment of smuggling fees at the Los Angeles area motels.  He dealt face-to-face with sponsors and collected smuggling proceeds in cash for the smuggling organization.

Santivanez, also an alleged manager in the organization, transported undocumented migrants; coordinated  smuggling events from the border; dealt with sponsors of the migrants and collected smuggling proceeds at the Los Angeles motels.

All three defendants were arrested on complaints after Hirales crossed the U.S./Mexico border at the Tecate Port of Entry. The indictment tracks particular alien smuggling events that occurred in July, August and September of 2019. It charges conspiracies involving bringing undocumented migrants to the United States, as well as transporting them once they were in the United States. Border Patrol investigators tracked command-level managers to hotels in the Los Angeles area and surveilled the exchange of smuggling fees conducted by Romero and Santivanez.  According to the indictment, the proceeds from the alien smuggling events were funneled back to Hirales in Mexico by codefendants Romero and Santivanez and other members of the smuggling organization.

“We will not allow criminal organizations to recruit our youth to smuggle people or drugs into our nation,” said U.S. Attorney Robert Brewer. “We will bring the full power of the justice system down on these recruiters.” Brewer praised the U.S. Border Patrol and prosecutors Timothy D. Coughlin and Zachary J. Howe for their work on the case.

Chief Patrol Agent Douglas Harrison stated, “I am proud of the great work our agents demonstrated in this investigation. Their actions have kept our communities safe and dismantled this dangerous smuggling organization.”

This case is the result of ongoing efforts by the United States Border Patrol–San Diego Sector to target active transnational criminal organizations in the Southern District of California.  One of the principal missions of the United States Border Patrol is to identify, disrupt, dismantle, and prosecute high-level members of alien smuggling organizations.

DEFENDANTS                                            Case Number 19CR4089-DMS                  

Cristian Hirales-Morales                                 Age: 31                       Tecate, Baja California, Mexico

Marcos Julian Romero                                    Age: 21                       San Diego, California

Sergio Anthony Santivanez                            Age: 23                       San Diego, California

SUMMARY OF CHARGES

Count 1 (Defendants Hirales and Romero) – Conspiracy to Bring In Illegal Aliens for Financial Gain – Title 8, U.S.C., Sections 1324(a)(1)(A)(i), (a)(1)(A)(v)(I), and (a)(1)(B)(i)

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

Count 2 (All Defendants) – Conspiracy to Transport Illegal Aliens for Financial Gain – Title 8, U.S.C., Sections 1324(a)(1)(A)(ii), (a)(1)(A)(v)(I), and (a)(1)(B)(i)

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

Counts 3-6 (Defendants Hirales and Romero) – Bringing in Aliens for Financial Gain – Title 8, U.S.C., Section 1324(a)(2)(B)(ii); Aiding and Abetting – Title 18, U.S.C., Section 2; and Pinkerton v. United States, 328 U.S. 640 (1946)

Maximum penalty: Each count carries a mandatory minimum term of imprisonment of three years and a maximum of 10 years for the first or second violation. Any additional violations carry a mandatory minimum term of imprisonment of five years and a maximum of fifteen 15 years

AGENCY

United States Border Patrol

San Diego Sector/Campo Station Intelligence Team

United States Border Patrol – BORTAC – Special Operations Division

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

Assistant U. S. Attorneys Joseph Green (619) 546-6955 and Sabrina Feve (619) 546-6786    

SAN DIEGO – The owners and two employees of the popular adult websites GirlsDoPorn and GirlsDoToys were charged in federal court today with sex trafficking crimes in connection with a scheme to deceive and coerce young women to appear in sex videos.

According to a complaint, owners Michael James Pratt and Matthew Isaac Wolfe along with  adult film performer and producer Ruben Andre Garcia and administrative assistant Valorie Moser used deception and false promises to lure the victims, who had responded to ads for modeling jobs that would supposedly pay $5,000. Eventually the women were told the job was really for adult films.

To persuade the women to participate, the defendants convinced them they could remain anonymous and that their videos would not be posted on the internet. In reality, the entire purpose was to post the videos on the internet. According to financial records, the websites have generated more than $17 million in revenue.

According to the complaint, the circumstances were not at all what was promised. Some of the women were pressured into signing documents without reviewing them and then threatened with legal action or outing if they failed to perform; some were not permitted to leave the shooting locations until the videos were made; family and friends and the general public eventually saw the videos online; some victims were harassed and ridiculed and estranged from their families as a result; and some were sexually assaulted and in at least one case raped. Some were forced to perform certain sex acts they had declined to do, or they would not be paid or allowed to leave.

Garcia was arrested on October 9; Wolfe was taken into custody Tuesday by immigration officials and transferred to federal criminal custody. They were arraigned this afternoon. Moser’s arraignment is scheduled for tomorrow before U.S. Magistrate Judge Linda Lopez. Pratt is a fugitive.

On October 9 at approximately 7:00 p.m., FBI agents executed a search warrant at an office located in the Spreckels Theatre Building located at 121 W. Broadway in San Diego. According to the search warrant, the office was used by members of the conspiracy to operate the GirlsDoPorn website.

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

DEFENDANTS                                            Case Number 19cr19mj4453                                   

Michael James Pratt                                       Age:       36                 Unknown

Matthew Isaac Wolfe                                      Age        37                 San Diego,

Ruben Andre Garcia                                       Age:       31                 San Diego,  

Valorie Moser                                                 Age:       37                 San Diego,  

SUMMARY OF CHARGES

Counts 1-3 (charging Pratt, Wolfe and Garcia)

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

Minimum penalty: Fifteen years in prison; Maximum penalty: life in custody, $250,000 fine.

Count 4 (charging all defendants)

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

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

INVESTIGATING AGENCY

FBI

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

 

Assistant U.S. Attorneys Meghan Heesch (619) 546-9442 and Andrew P. Young (619) 546-7981

NEWS RELEASE SUMMARY – October 4, 2019

SAN DIEGO – Johnny Martin, a former supervisor in the Department of Homeland Security, was convicted by a federal jury today of lying to the FBI about providing confidential information from law enforcement databases to outsiders. The information was used by fraudsters who duped more than 100 victims out of millions of dollars with false promises of green cards.

During the investigation, the FBI uncovered confidential government information in the email inbox of Hardev Panesar. Panesar and his associate, Rafael Hastie, posed as Department of Homeland Security (DHS) agents and conned immigrants into paying exorbitant fees for the promise of green cards they would never see. Panesar and Hastie were able to convince victims they were bona fide federal agents in part by presenting them with confidential information obtained from law enforcement databases.

The FBI suspected that Martin, who at the time was a supervisory special agent with Homeland Security Investigations, was the source of this confidential information. When FBI agents interviewed Martin in June 2017, he denied sending Hastie the confidential government information. 

After the interview, the FBI discovered that – contrary to his denials – Martin had personally extracted the information from law enforcement databases, and had emailed this information directly to the Hastie. The FBI confirmed that the information - which included personally identifiable information, immigration and criminal history - was used by Panesar and Hastie in an attempt to defraud the victims in the immigration fraud scheme.  There is no evidence that Martin knew that Hastie was using the information he provided as part of their scam.

After a three-day trial and 11 hours of deliberation, the jury found that despite his denials, Martin lied to the FBI about sending that information to Hastie.

“This immigration scam was successful, in part, because a government official betrayed his badge and then lied about it,” said U.S. Attorney Robert Brewer. “No one, including members of the law enforcement community, is above the law.” Brewer praised the FBI and prosecutors Andrew Young and Megan Heesch for their hard work on the case.

“No matter your role, status, or position in the community, it is a federal crime to lie to the FBI,” said Special Agent in Charge Scott Brunner. “Lying to an FBI agent as part of an investigation is not only fundamentally wrong but could place lives in danger and frustrate the administration of justice.  Mr. Martin knew better and today he was held accountable.”

“Law enforcement officials are held to the highest standard and integrity is at the core of those standards,” said Pete Flores, Director of Field Operations for U.S. Customs and Border Protection, San Diego.  “As in this case, we are fully committed to working with our law enforcement partners to ensure violators are held accountable.”

Martin’s case is related to a separate immigration fraud case pending against Panesar, Hastie and Gurdev Singh (Case No. 17CR1371-GPC).

Panesar pleaded guilty in February and is scheduled to be sentenced on October 9 at 1 p.m. before Judge Gonzalo P. Curiel; Hastie pleaded guilty in October 2018 and was sentenced to 46 months in custody and was ordered to pay $942,310 in restitution; Gurdev Singh pleaded guilty in June 2018 and was sentenced to 27 months in custody and ordered to pay $392,850 in restitution.

DEFENDANT                                   Case Number:   18CR2835-GPC

Johnny Martin                                     Age: 60               Chula Vista, California

SUMMARY OF CHARGE

Making a False Statement to a Federal Agent, in violation of 18 U.S.C. § 1001

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

AGENCIES

Federal Bureau of Investigation

Customs and Border Protection - Office of Field Operations

Customs and Border Protection - Office of Professional Responsibility

 

Assistant U.S. Attorneys Daniel Silva and Colin McDonald (619) 546-9713

NEWS RELEASE SUMMARY – September 30, 2019

SAN DIEGO ­– Aidan Curry and Connor Brooke pleaded guilty in federal court today for conspiring to launder Dark Web proceeds through their unlicensed money transmitting business, which sold cryptocurrency to complete strangers in exchange for cash.

As part of their guilty pleas, the defendants agreed to forfeit tens of thousands of dollars’ worth of cash, cryptocurrency, and high-end, sophisticated hardware including computers, phones, hard drives and storage devices that were involved in the money laundering conspiracy.

Special Agents from Homeland Security Investigations identified Curry and Brooke as managers of a San Diego-based business advertising the ability and willingness to sell Bitcoin (a specific type of cryptocurrency) for a premium, and always in cash, to the public. Persons who purchase or sell contraband on online black markets (also known as the “Dark Web”) use cryptocurrency such as Bitcoin to conduct transactions. Cryptocurrency provides a vendor and customer with perceived anonymity. The Dark Web is a network of encrypted communication systems that can only be accessed using special software tools. Before someone can use cryptocurrency, they must first convert their “real,” fiat currency (such as United States Dollars) into the cryptocurrency. A common way to do so is through an unlicensed money transmitting business (an “MTB”) that exchanges cryptocurrency for cash.

As admitted in the plea agreements entered today before U.S. Magistrate Judge Michael S. Berg, Curry and Brooke conducted, controlled, managed, supervised, directed and owned all or part of a cryptocurrency MTB called “BayCoins.” Curry described the unlicensed MTB to an acquaintance over text messages, stating: “I’m basically like a currency exchange place for Bitcoin”; and that he and Brooke advertised their MTB on a website that was equivalent to the “Craigslist of bitcoin”.

By August 2018, BayCoins had posted two separate online solicitations – one with Curry’s information and the other with Brooke’s. The advertisements promised “quick, easy, and hassle free” Bitcoin transactions, with a “non-negotiable” five percent transaction fee, and always for cash. By accepting cash in exchange for cryptocurrency, as opposed to other forms of payment such as electronic money transfers, checks, or cash deposits into a bank account, Curry and Brooke operated their MTB in relative anonymity and evaded the anti-money laundering scrutiny of other licensed and registered financial institutions. This anonymity extended to their customers as well.

BayCoins generated sufficient profits, alongside a growing inventory of cryptocurrency, to fund the defendants’ acquisition, sale, and distribution of marijuana on various Dark Web marketplaces. After receiving payment for the marijuana, Curry and Brooke then sold the cryptocurrency for additional profit through the BayCoins unlicensed MTB.

U.S. Attorney Robert Brewer said, “The United States will continue to pursue, uncover and dismantle money laundering and narcotics trafficking organizations seeking to operate behind multiple layers of anonymity – whether it’s the Dark Web, through unlicensed money transmitting businesses, or with sophisticated software. Compliance with the anti-money laundering laws of the United States is not an option. We treat knowing compliance failures for what they are: a crime. I applaud the excellent work of the federal agents and Assistant U.S. Attorneys who unraveled these complex crimes.”

“Homeland Security Investigations Special Agents worked diligently to uncover this Dark Web scheme led by Curry and Brooke that used cryptocurrency such as Bitcoin to conduct illegal transactions,” said Nick Annan, special agent in charge of HSI in San Diego. “The investigation resulting in today’s guilty plea is an excellent example of the commitment and partnership between HSI and prosecutors to seek out individuals and criminal networks who try to conceal their illicit activities under the cloak of the Dark Web.”

The investigation was led by Special Agents of Homeland Security Investigations. This case is being prosecuted by Assistant U.S. Attorneys Daniel Silva and Colin McDonald.

Sentencing is scheduled to occur on January 6, 2020. Curry and Brooke both face a maximum of 20 years in prison.  

DEFENDANTS                                            Case Number 19-CR-3839-GPC                                        

Aidan Curry                                                    San Diego, CA                        Age: 23

Connor Brooke                                               San Diego, CA                        Age: 25

SUMMARY OF CHARGES*

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

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

AGENCIES

Homeland Security Investigations

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

 

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

NEWS RELEASE SUMMARY – September 26, 2019

SAN DIEGO – Luis Alberto Vargas of Perris was arraigned today on a felony complaint charging him with smuggling pesticides into the United States from Mexico. Vargas made his appearance before U.S. Magistrate Judge F.A. Gossett.

The complaint alleges that Vargas smuggled three containers with 2.25 liters of Mexican pesticides into the United States on September 9, 2019.  According to the complaint, Vargas brought in pesticides containing the active ingredients chlorpyrifos and abamectin, chemicals which are considered to be restricted-use pesticides in the United States because they are lethal if ingested, harmful if absorbed through the skin or inhaled, and toxic to bees and other wildlife. 

In the United States, federal regulations limit the commercial sale and distribution of restricted-use pesticides to those who have received training and certification approved by the U.S. Environmental Protection Agency in mitigating the dangers of such chemicals. 

The complaint alleges that Vargas lacks the certification needed for purchase or commercial use of such pesticides.  Only pesticides registered with the EPA may be imported, sold, or distributed in the United States, and all pesticides intended for commercial use in the United States must bear their EPA registration number on their labels.  According to the complaint, the containers imported by Vargas were labeled only in Spanish and bore no EPA registration numbers.

“These types of chemicals, which are extremely dangerous to humans if ingested or inhaled, must be kept out of the hands of untrained individuals,” said U.S. Attorney Robert Brewer. “Misapplication of these chemicals could cause untold harm to our citizens and the environment.”

“We allege that the defendant knowingly smuggled unregistered pesticides into the country, violating environmental regulations established to protect human health and the environment,” said Jay Green, Special Agent-in Charge of EPA’s Criminal Investigation Division. “EPA and its partners worked together to apprehend the defendant and prevent this illegal product from threatening public safety.”

“The illegal importation and use of restricted pesticide products puts people's health and the environment at significant risk,” said Juan Munoz, deputy special agent in charge for HSI San Diego.  “HSI agents will continue to investigate these individuals that are involved in the illicit distribution of these dangerous products that threaten our communities.”

California Department of Toxic Substances Control Chief Investigator, Hansen Pang said, “It is notable to see State and Federal Law Enforcement work together on a no-tolerance initiative to protect the environment.”

DEFENDANT 

Luis Alberto Vargas                                        Age: 28                                   Perris, California

SUMMARY OF CHARGES

Smuggling, 18 U.S.C. § 545

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

AGENCIES

U.S. Environmental Protection Agency, Criminal Investigations Division

Department of Homeland Security, Homeland Security Investigations

California Department of Toxic Substances Control, Office of Investigations

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

 

NEWS RELEASE SUMMARY – September 24, 2019

SAN DIEGO – Fady Esho, was sentenced yesterday in federal court to 30 years in prison for his aggravated role in a drug distribution conspiracy as well as his participation in an attempted armed robbery ordered by the Mexican Mafia. 

The charges stem from an investigation by the FBI-led Violent Crimes Task Force, Gang Group (VCTF-GG) into drug trafficking, firearms and violent crimes being committed by certain gang members and their associates in San Diego.

“Taking this Mexican Mafia member off the street for three decades is a big win for public safety,” said U.S. Attorney Robert Brewer. “This significant sentence will prevent defendant, who was a violent firearms and drug trafficker in addition to being a Mexican mafia member, from further menacing our community.”  The U.S. Attorney praised prosecutors Todd Robinson and Kareem Salem as well as the FBI and the Violent Crimes Task force-Gang Group for their diligence in prosecuting this important case.

"The 30-year sentence handed down today sends a clear message to anyone that is involved with the criminal activities of violent gangs and the Mexican Mafia: Expect to be investigated by the FBI Violent Crimes Task Force-Gang Group (VCTF-GG) and aggressively prosecuted,” said FBI SAC Scott Brunner. “Because of this long-term investigation, crimes of violence were prevented and a dangerous criminal enterprise trafficking in drugs and firearms throughout Southern California was decimated.  Our community is safer with these gang members and associates behind bars.”

The defendant pleaded guilty on May 9, 2019 (18cr3424-LAB) to possessing methamphetamine with the intent to distribute; being a felon in possession of a firearm; attempting to commit a Hobbs Act Robbery; and possession of a firearm in furtherance of a crime of violence. That same day, he also pleaded guilty (18cr4217-LAB) to one count of conspiring with others to distribute over 50 grams of methamphetamine.

According to the prosecutor, Fady Esho was nicknamed the “Golden Goose” by several individuals associated with the Mexican Mafia based on his capability to distribute firearms and narcotics as well as collect money at their direction.

On June 13, 2018 agents intercepted communications of the defendant and two of his co-defendants who discussed their intention to commit an armed robbery and assault on behalf of the Mexican Mafia. In response, San Diego Police Department Gang Suppression Officers stopped the vehicle Fady Esho was driving as his drove to their intended victim. Ultimately, officers recovered four firearms, 56 rounds of ammunition and zip ties, which officers believe were for restraining the intended victim.

In addition to his role in the attempted robbery, the defendant was sentenced for his role, organization, and distribution of multiple pounds of methamphetamine.

Intercepted communications also revealed that the defendant was engaged in the distribution of methamphetamine to several customers, including an individual who on two occasions flew from Florida to purchase pounds of methamphetamine from the defendant. But for the quick response from members of the VCTF-GG, pounds of methamphetamine, which were packaged and shipped via the United States Postal Service, would have found its way to drug users in the Florida area.

SUMMARY OF CHARGES

Possession with the Intent to Distribute Methamphetamine, in violation of Title 21, U.S.C. Section 841 (a)(1)
Maximum Penalty: Forty years in prison; Five year mandatory minimum

Felon in Possession of a Firearm, in violation of Title 18, U.S.C. Section 922(g)
Maximum Penalty: Ten years in prison

Attempted Hobbs Act Robbery, in violation of Title 18, U.S.C. Section 1951
Maximum Penalty: Twenty years in prison

Possession of firearm in furtherance of a crime of violence, in violation of Title 18, U.S.C. Section 924(c)
Maximum Penalty: Five years mandatory minimum in prison

Conspiracy to Distribute Methamphetamine, in violation of Title 21, U.S.C. Sections 841 (a)(1) and 846
Maximum Penalty: Up to life in prison; Ten year mandatory minimum

DEFENDANT                        Case Numbers: 18CR3424-LAB & 18CR4217-LAB

Fady Esho                               Age: 37                                San Diego                                                          

INVESTIGATING AGENCIES

Violent Crimes Gang Task Force

Task Force agencies include:

FBI, ATF, DEA, BOP, USPIS, California Department of Corrections and Rehabilitation, San Diego District Attorney's Office, San Diego Police Department, San Diego Sheriff's Department, National City Police Department, Chula Vista Police Department, La Mesa Police Department, El Cajon Police Department and Federal Bureau of Prisons- Joint Intelligence Sharing Initiative

NEWS RELEASE SUMMARY – September 23, 2019

SAN DIEGO – Martin Gomez of California was sentenced in federal court today to 240 months in prison for leading a conspiracy to smuggle methamphetamine, heroin, marijuana, and cell phones through a Corrections Officer into a state prison.

Gomez had previously pleaded guilty to Conspiracy to Distribute Methamphetamine pursuant to a plea agreement, after being indicted with 10 other co-conspirators.

One co-defendant, Juan Gutierrez, charged in the conspiracy remains awaiting trial, which is scheduled for January 21, 2020.  The trial was continued from May 2019 after Gutierrez struck his own attorney in open court during a status hearing just prior to his trial.

From his cell in a California state prison in Los Angeles, Gomez organized and directed a group of at least 11 other participants to smuggle contraband into a different state prison, Richard J. Donovan (“RJD”), in San Diego.  Gomez arranged for individuals outside of prison to deliver the drugs and cell phones to a Corrections Officer, Anibal Navarro.  He then instructed Navarro to collect the contraband and money, and deliver the contraband to certain inmates inside the prison.  Gomez directed those inmates to retrieve the contraband and deliver it to other inmates within RJD.

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

Gomez was able to continue coordinating and supervising the operation by conducting conference calls with Sylvia Gonzales, Gomez’s associate outside the prison, Navarro, and others.  During these calls, the conspirators arranged for narcotics, cellular telephones and cash to be delivered to Navarro at various locations in Southern California.

In addition to Gonzales, the smuggling operation was also aided by others outside the prison, including Everaldo Santana, Norma Alvarado-Medina and Vanessa Jackson.  These individuals provided Navarro with the narcotics and cellular telephones to smuggle into the prison.

After the contraband was smuggled into the prison, RJD inmates Agustin Aceves, Juan Gutierrez, John Price, Jeremy Gaither and Hugo Alvarado received and distributed the narcotics and cellular telephones to other inmates.  The phones were used to coordinate criminal activity both inside and outside the facility.

“This defendant personally profited from a corrupt drug smuggling scheme that significantly interfered with the rehabilitation of his fellow inmates,” said U.S. Attorney Robert S. Brewer, Jr.  “He also created a dangerous prison environment by providing cell phones, which can result in drug trafficking, fraud, and even violence.  This sentence signals that justice does not stop at the prison gate; those who engage in prison corruption will face significant consequences.”

With the exception of Gutierrez, Gomez’s codefendants have all pleaded guilty.  They have been sentenced as follows.

Sylvia Gonzales was convicted of Conspiracy to Commit Honest Services Wire fraud, and sentenced to five years’ probation.

Everaldo Santana was convicted of Conspiracy to Commit Honest Services Wire Fraud, and sentenced to time-served, with three years’ supervised release.

Agustin Aceves was convicted of Conspiracy to Distribute Methamphetamine, and sentenced to 151 months incarceration, to run 50% concurrent and 50% consecutive to his state case, followed by five years’ supervised release.

Norma Alvarado-Medina was convicted of Conspiracy to Distribute Methamphetamine, and sentenced to 41 months, with three years’ supervised release to follow.

John Price was convicted of Conspiracy to Distribute Methamphetamine and Heroin, and was sentenced to 51 months incarceration, to run 50% concurrent and 50% consecutive with his state case, followed by four years’ supervised release.

Vanessa Jackson was convicted of Conspiracy to Distribute Methamphetamine, and sentenced to 30 months, to be followed by four years of supervised release.

Hugo Alvarado was convicted of Conspiracy to Commit Honest Services Wire Fraud, and sentenced to 18 months to run concurrent with his state sentence, with three years of supervised release to follow.

Edgar Arreguin was convicted of Conspiracy to Commit Honest Services Wire Fraud, and sentenced to time served with three years’ supervised release.

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

 

DEFENDANTS                                                     Case No. 17cr0446-AJB                                                  

MARTIN GOMEZ                                         Age 58            Lancaster Prison

SYLVIA GONZALES                                     Age 59            Sylmar, California

EVERALDO SANTANA                                Age 27            Los Angeles, California

AGUSTIN ACEVES                                      Age 45            Lancaster Prison

NORMA ALVARADO-MEDINA                    Age 36            Al Monte, California

JUAN GUTIERREZ                                      Age 44            Vacaville, California

JOHN PRICE                                              Age 23            Salinas Valley Prison

VANESSA JACKSON                                   Age 42            Pasadena, California

JEREMY GAITHER                                      Age 35            Valley State Prison

HUGO ALVARADO                                     Age 27            High Desert Prison

EDGAR ARREGUIN                                     Age 44            Lemon Grove, California

DEFENDANTS                                                     Case No. 16cr1664-AJB                                                  

ANIBAL NAVARRO                                    Age 40             Chula Vista, California

SUMMARY OF CHARGES

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

10-year mandatory minimum

Maximum penalty: Life in prison and $20,000,000 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

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

 

 

 NEWS RELEASE SUMMARY – September 19, 2019                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

SAN DIEGO – Eight indictments were unsealed today in San Diego federal court charging 85 members of drug distribution networks linked to the Sinaloa Cartel, with federal drug trafficking, money laundering and firearms offenses.

During the coordinated takedown that began early this morning, investigators executed over a dozen search warrants and seized approximately four pounds of methamphetamine and two firearms. As of today at 1 p.m., 47 of the 85 defendants are either in federal or state custody. Authorities are continuing to search for 38 defendants. Many of the defendants are scheduled to be arraigned before U.S. Magistrate Judge Allison H. Goddard at 2:00 p.m. tomorrow.

According to the indictments and other publicly filed court documents, this year-long investigation led by the Drug Enforcement Administration and the Internal Revenue Service targeted multiple San Diego-based drug distribution and money laundering networks led respectively by Juan Carlos OCHOA, Rene VALDEZ Jr., Ramon CASTILLO, Michael WRIGHT, Alfonso ARROYO, Douglas BOWEN, Samuel BECERRA, and Javier VERGARA. These affiliated networks supplied multi-kilogram quantities of controlled substances (primarily methamphetamine and heroin but also fentanyl) to dozens of subdistributors located throughout Southern California. These networks were also responsible for laundering tens of thousands of dollars in narcotics proceeds back to Sinaloa Cartel-associated drug traffickers in Mexico. During this investigation, agents coordinated seizures of narcotics and drug proceeds throughout San Diego County and across the United States.

To avoid detection by law enforcement, the defendants also utilized various encrypted communication services like Signal and WhatsApp to communicate among themselves. Despite their sophisticated efforts, law enforcement penetrated this network with a variety of investigative techniques, including physical surveillance, obtaining phone records, financial documents, tracking warrants on telephones and vehicles, and undercover agents. Over the course of the investigation, agents obtained dozens of search warrants and conducted a 10-month-long federal wiretap to track the communications and the location of the defendants. In conjunction with the wiretaps, agents ultimately seized approximately 175 pounds of methamphetamine, heroin, and fentanyl tied to these networks, approximately $50,000 in cash, multiple firearms, and a 2020 Cadillac Escalade (valued at over $115,000).  

“Today we sent a message to drug traffickers in our community. If you sell drugs in San Diego, we will find you and prosecute you to the full extent of the law,” said U.S. Attorney Robert Brewer. “I want to congratulate the outstanding federal, state, and local law enforcement cooperation that has resulted in this highly successful investigation. This case represents yet another critical strike against the Sinaloa Cartel and its U.S.-based networks.”

“Today’s operation was about community care taking,” said DEA Special Agent in Charge Karen Flowers.  “We took criminals off the street in South County who were selling drugs and committing violent crimes - robberies - home invasions - identity theft - fraud - and other property crimes.  The void left is an opportunity for the communities in South County to exhale and breathe in fresh air.  Freedom is priceless.  Today South County is free to live without a criminal undertone which eroded their daily quality of life.”

“A significant portion of the indictments unsealed today are alleged money laundering conspiracy violations and the asset forfeiture allegations,” stated Assistant Special Agent in Charge Johnathan Smith.  “Multiple defendants are charged with conspiracy to commit money laundering violations, a charge which carries a statutory maximum sentence of 20-years imprisonment.  These are serious crimes that come with serious time.”

This case was led by the Drug Enforcement Administration’s Narcotics Task Force (NTF) and the Internal Revenue Service. The NTF is a DEA-led task force comprised of federal and local law enforcement from the DEA, San Diego County Sheriff’s Department (SDSD), the San Diego Police Department (SDPD), United States Border Patrol (USBP), and the San Diego County Probation Office. Agents and officers from the United States Marshals Service, United States Secret Service, Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Federal Bureau of Prisons also provided vital assistance for the investigation. Attorneys from the Department of Justice, Office of Enforcement Operations, Electronic Surveillance Unit, likewise provided critical work as part of the investigative team.

This case is the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise and unique abilities of federal, state, and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt, dismantle and prosecute high level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.

The United States is represented in court by Assistant U.S. Attorneys Matthew J. Sutton, and Mario J. Peia.

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

Defendant Information 

19-cr-3624-CAB Indictment - Click HERE

Defendants                                                                                     Criminal Case No: 19-cr-3624-CAB

Defendant Number

Name

Hometown

1

Juan Carlos Ochoa

El Cajon, CA

2

Belinda Maria Menke

El Cajon, CA

3

Oscar Clemente-Perez

El Cajon, CA

4

Anton Dockery

El Cajon, CA

5

Amira Novelo-Torres

Tijuana, MX

6

Guillermo Castellano

El Cajon, CA

7

Monica Alcantar

El Cajon, CA

8

Alberto Frayre

Chula Vista, CA

9

Ivan Rodriguez

El Cajon, CA

10

Brian Perin

San Diego, CA

11

Edward DiBartola

San Diego, CA

12

Juanita Ortiz

El Cajon, CA

13

Lorena Torres

El Cajon, CA

14

Marcus Dewayne Caldwell

San Diego, CA

15

Candace Marie Spears

San Diego, CA

16

Eduardo Lerma

El Cajon, CA

17

Gene Fitzgerald

San Diego, CA

18

Melissa Young

San Diego, CA

19

Jessie Avina

El Cajon, CA

Summary of Charges

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

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

Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, 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, and three years of supervised release.

19-cr-3625-CAB Indictment - Click HERE

Defendants                                                                                     Criminal Case No: 19-cr-3625-CAB

Defendant Number

Name

Hometown

1

Alfonso Arroyo

San Diego, CA

2

James Anthony Tate

San Diego, CA

3

Alice Chairez

San Diego, CA

4

Zena Marie Gonzalez

San Diego, CA

5

Steven Geiss

San Diego, CA

6

Tommy Diego Duenas

San Diego, CA

7

Josephina Hernandez

San Diego, CA

8

Kajlid Jafar Wilks

San Diego, CA

Summary of Charges

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

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

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

Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, 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, and three years of supervised release.

19-cr-3626-CAB Indictment - Click HERE

Defendants                                                                                     Criminal Case No: 19-cr-3626-CAB

Defendant Number

Name

Hometown

1

Samuel Becerra

San Diego, CA

2

Gabrielle Logue

San Diego, CA

3

Kelly Daniels

San Diego, CA

4

Larry Meisner

San Diego, CA

5

Walter Kuttner

Spring Valley, CA

6

Kelly Jean Kelly

San Diego, CA

7

Kurt Roiz

San Diego, CA

8

Rodolfo Andrade

Chula Vista, CA

9

Alfredo Gomez

San Diego, CA

Summary of Charges

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

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

Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, 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, and three years of supervised release.

19-cr-3627-CAB Inictment - Click HERE

Defendants                                                                                     Criminal Case No: 19-cr-3627-CAB

Defendant Number

Name

Hometown

1

Douglas Bowen

San Diego, CA

2

Erick Cifuentes

San Diego, CA

3

John Bordwell Jr.

San Diego, CA

4

Raya Jaye Kimball

San Diego, CA

5

Stephen Robert Chavez

San Diego, CA

6

Robert David Houser

San Diego, CA

7

Justin Scott Baker

San Diego, CA

8

Janette Lee Taylor

San Diego, CA

9

Emilio Vanegas

San Diego, CA

10

Christopher Nobis

San Diego, CA

11

Maximino Padilla

San Diego, CA

12

Erika Marlene Ramirez-Ramirez

San Diego, CA

13

Heaven Rapp

San Diego, CA

14

Shelley Marie Cobb

San Diego, CA

15

Sarrah Jean Kent

San Diego, CA

16

David Hopkins

San Diego, CA

17

Matthew Bogan

San Diego, CA

18

Emily Uscanga

San Diego, CA

19

Michael Bowen

Colorado Springs, CA

20

Edson Garcia

San Diego, CA

21

Brandon Brooks

San Diego, CA

22

Raheem Jackson

San Diego, CA

23

Heather Kieley

San Diego, CA

24

Yvette Romero

San Diego, CA

25

Bobby Lee Crisp

San Diego, CA

26

Dario Navarro

San Diego, CA

Summary of Charges

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

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

Felon in Possession of a Firearm (18 U.S.C. § 922(g)(1))

Importation of a Controlled Substance (21 U.S.C. §§ 952, 960 and 963)

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

Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, 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, and three years of supervised release.

19-cr-3628-CAB Indictment - Click HERE

Defendants                                                                                     Criminal Case No: 19-cr-3628-CAB

Defendant Number

Name

Hometown

1

Ramon Castillo

San Diego, CA

2

Samuel Jones

San Diego, CA

3

Julio Noriega

San Diego, CA

4

Johanna Trujillo

San Diego, CA

Summary of Charges

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

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

Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, 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, and three years of supervised release.

19-cr-3629-CAB Indictment - Click HERE

Defendants                                                                                     Criminal Case No: 19-cr-3629-CAB

Defendant Number

Name

Hometown

1

Rene Valdez Jr.

San Diego, CA

2

Araceli S. Lomeli

San Diego, CA

3

David Valdez

San Diego, CA

4

Robert Tate Allen

San Diego, CA

5

Sergio Eduardo Gutierrez Martinez

Tijuana, MX

6

Milton Perez Cruz

Tijuana, MX

Summary of Charges

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

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

Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, 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, and three years of supervised release.

19-cr-3630-CAB Indictment - Click HERE

Defendants                                                                                     Criminal Case No: 19-cr-3630-CAB

Defendant Number

Name

Hometown

1

Javier Vergara

San Diego, CA

2

Raul Alonso Varela-Ruiz

San Diego, CA

3

Michelangelo Becerra

San Diego, CA

4

Candice Harrington

San Diego, CA

5

Amanda Bitticks

San Diego, CA

6

Eduardo Pardo

San Diego, CA

7

Rose Velasquez

San Diego, CA

Summary of Charges

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

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

Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, 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, and three years of supervised release.

19-cr-3631-CAB Indictment - Click HERE

Defendants                                                                                     Criminal Case No: 19-cr-3631-CAB

Defendant Number

Name

Hometown

1

Michael Wright

San Diego, CA

2

Rhiannon Hiller

San Diego, CA

3

Michael Branch

San Diego, CA

4

Bryan Carlton

San Diego, CA

5

Charles Moore

San Diego, CA

6

Sara Syverson

San Diego, CA

Summary of Charges

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

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

Maximum Penalties: For the drug charges, term of custody including a mandatory minimum 10 years and up to life in prison, $10 million fine and a lifetime of supervised release. For money laundering charges, 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, and three years of supervised release.

AGENCIES

Drug Enforcement Administration, Narcotics Task Force

Internal Revenue Service - Criminal Investigation

San Diego County Sheriff’s Department

United States Marshals Service

United States Border Patrol

United States Secret Service

United States Bureau of Alcohol, Tobacco, Firearms and Explosives

Federal Bureau of Prisons

San Diego Police Department

El Cajon Police Department

Chula Vista Police Department

San Diego County Probation Office

San Diego County District Attorney’s Office

Department of Justice, Organized Crime Drug Enforcement Task Forces

Department of Justice, Office of Enforcement Operations

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

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

Assistant U. S. Attorneys Mark Conover (619) 546-6763 and David P. Finn (619) 546-7342

NEWS RELEASE SUMMARY – September 17, 2019

SAN DIEGO – Uriah Odish pleaded guilty in federal court today, admitting that he supplied fentanyl that led to the fatal overdose of 25-year-old Tiffany Hansen of La Mesa on January 23, 2018.

According to his plea agreement, Odish sold more than 500 grams of what he knew to be fentanyl between 2017 and the day of the fatal overdose. He pleaded guilty before U.S. Magistrate Judge Karen Crawford to Conspiracy to Distribute Fentanyl and is scheduled to be sentenced on December 17, 2019 by U.S. District Judge Barry Ted Moskowitz.

“Every time we have an overdose death, we are going to come looking for the dealer,” said U.S. Attorney Robert Brewer. “We are using every available criminal and civil tool to combat this deadly epidemic and stop these tragic losses.”

“We work every day to save lives and we grieve when we lose a precious soul to drugs,” said DEA Special Agent in Charge Karen Flowers.  “We will continue to pursue anyone who deals death.  Is that you?  If so, we are coming and your time will soon be spent behind bars.  We are relentless.”

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

U.S. Attorney Brewer  praised prosecutors Mark Conover and David Finn as well as DEA agents and La Mesa police for their hard work on the case.

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 18-CR-1812-BTM                                        

Uriah Odish                                                    Age: 28          

SUMMARY OF CHARGES

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

Maximum penalty: Mandatory minimum 10 years in prison up to life

AGENCY

La Mesa Police Department

U.S. Drug Enforcement Administration, Narcotics Task Force

 

Assistant U. S. Attorneys Brandon J. Kimura (619) 546-9604 and Matthew Brehm (619) 546-8983  

NEWS RELEASE SUMMARY – September 16, 2019

SAN DIEGO – Lance Lamont Lavert of Utah was sentenced in federal court today to 189 months in prison for a violent armed robbery in which he terrorized and pistol whipped a Carlsbad Motel 6 clerk.

Lavert was convicted by a federal jury in August of using and brandishing a Smith and Wesson .357 magnum revolver during the robbery and being a felon in possession of a firearm. The jury returned its verdict after hearing the testimony of 11 witnesses and deliberating for approximately two hours.

“What an excruciating experience for these victims, who were hunted and pistol-whipped by a gunman,” said U.S. Attorney Robert Brewer. “This is a fitting sentence for a gunman who did not hesitate to attack. Protecting our community from violent criminals is our number one priority.”

During trial before Chief U.S. District Judge Larry Alan Burns, the prosecution relied on victims from the Motel 6, a Carlsbad police detective, forensic specialists from the San Diego Sheriff’s Department, and federal agents, among others, as witnesses to prove Lavert’s traumatizing crimes.

Witnesses described how, on the morning of July 9, 2018, Lavert and his girlfriend, a co-defendant, entered the Motel 6 on Paseo Del Norte in Carlsbad, California.  Lavert approached the counter and asked for a room. When his request was denied due to a lack of identification, Lavert pulled a gun out of his backpack, pointed it at the clerk and her manager, and demanded money. The clerk and manager ran from Lavert but Lavert jumped the counter, kicked in the door of the bathroom where the clerk was hiding, and then brought the clerk, at gunpoint, back to the cash register.  Lavert demanded money and pistol-whipped her in the head.  After the clerk opened a drawer that held the motel’s cash, Lavert grabbed money from the drawer and ordered the clerk to give him keys to her personal vehicle. Lavert then jumped back over the counter and he and his girlfriend departed.

Two days later, Lavert was arrested trying to enter the United States from Mexico at the San Ysidro Port of Entry.  He had the Smith and Wesson .357 magnum revolver concealed in his waistband. The prosecution introduced certified court documents to prove Lavert had several prior felony convictions, including for arson.

Lavert’s co-defendant accepted a resolution before trial. 

This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section.  Formed in 2019, by U.S. Attorney Robert S. Brewer, Jr., 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, labor trafficking and alien smuggling. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood.

DEFENDANT                                               Case Number 18cr3485-LAB                                             

Lance Lamont Lavert                                     Age: 37                                   Salt Lake City, UT

SUMMARY OF CHARGES

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

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

Using and Brandishing a Firearm During and in Relation to a Crime of Violence –

Title 18, U.S.C., Section 924(c)

Maximum penalty: Life in prison; a mandatory minimum seven years in prison; and $250,000 fine

Felon in Possession of a Firearm

Title 18, U.S.C., Section 922(g)(1)

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

AGENCIES

Carlsbad Police Department

San Diego Sheriff’s Department

Homeland Security Investigations

Customs and Border Protection

 

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

NEWS RELEASE SUMMARY – September 16, 2019

SAN DIEGO – Gibran Rodriguez-Mejia, a lawyer from Sinaloa, Mexico, was sentenced in federal court today by U.S. District Judge Roger T. Benitez to eight years in custody for laundering millions of dollars of drug proceeds for the Sinaloa Cartel.

Rodriguez, who has a Mexican law degree with a specialization in business and civil law, pleaded guilty in April, admitting that he operated a currency exchange house that received the proceeds of multi-kilogram quantities of cocaine, methamphetamine and heroin smuggled into the United States by the Sinaloa Cartel.  Rodriguez, who was extradited from Mexico to San Diego in September 2018, is the fourth Mexico-based defendant in this case to be sentenced.    

In his plea agreement, Rodriguez admitted to laundering $3.5 million in drug proceeds. He coordinated with couriers, primarily located in Southern California, who smuggled the bulk U.S. currency from the United States to Mexico.  Rodriguez also admitted that he arranged for currency to be smuggled to an exchange house in Tijuana, Mexico that was owned and operated by co-defendant Cesar Hernandez-Martinez, who has also pleaded guily and is set to be sentenced on December 2, 2019.  After the money was converted to Mexican pesos, Rodriguez provided financial accounts in Mexico into which the money was deposited for the benefit of the Mexican-based drug traffickers.

According to court records, in one instance in April 2014, Rodriguez and an individual referred to as “Doc” arranged for a southbound money courier to pick up $100,000 dollars from Philadelphia, Pennsylvania, and transport that sum to Mexico. “Doc” provided the courier’s identity to Rodriguez, who arranged the purchase of a plane ticket for the courier to travel to Philadelphia to make the pick up. When the courier landed, law enforcement conducted surveillance and then seized the $100,000 in cash on the courier’s person and in his hotel room.

“Those who launder proceeds for the world’s most violent drug trafficking organizations will continue to be targeted and brought to justice no matter where they may be located,”  said U.S. Attorney Robert Brewer.  “We will continue to combat efforts to further the flow of dangerous narcotics across the border into and through Southern California by every means at our disposal.”

In addition to the six defendants in U.S. custody in this case, approximately 20 other individuals have entered guilty pleas and have been sentenced previously in related cases.  Those cases have involved individuals based in the United States or who frequently crossed into the United States and served as money couriers, drug couriers and drug stash house operators and who were part of, or related to, the same money laundering and drug trafficking organization.

Three other defendants have previously entered guilty pleas in this case and been sentenced (Omar Ayon-Diaz; Osvaldo Contreras-Arriaga; and Joel Acedo-Ojeda) and two others (Cesar Hernandez-Martinez and Oscar Rodriguez-Guevara) have entered guilty pleas.  Hernandez-Martinez entered his plea on April 4, 2019 and will be sentenced on October 21, 2019 at 9:00 a.m. before Judge Benitez and Rodriguez-Guevara entered his plea on August 22, 2019 and will be sentenced on December 2, 2019 at 9:00 a.m., also before Judge Benitez.

The U.S. Attorney’s Office prosecuted this case with the Money Laundering and Asset Recovery Section of the Criminal Division of the Department of Justice in Washington, D.C.

DEFENDANT                                   Case Number 15-cr-950                                                                   

Gibran Rodriguez-Mejia                     Age:    31                    Culiacan, Sinaloa, Mexico     

SUMMARY OF CHARGE

Hernandez-Martinez

Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h).

Maximum Penalties: Twenty years in prison; $500,000 fine or twice the value of the funds involved.

Prior Guilty Pleas and Sentences

Joel Acedo-Ojeda: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); sentenced to 135 months custody and $20,000 fine.

Omar Ayon-Diaz: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); sentenced to 120 months custody and $15,000 fine.

Osvaldo Contreras-Arriaga: Pleaded guilty to Conspiracy to import cocaine, in violation of Title 21, U.S.C., Secs. 952, 960 and 963; sentenced to 132 months custody and $1,000 fine.

Cesar Hernandez-Martinez: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); will be sentenced on October 21, 2019.

Oscar Rodriguez-Guevara: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); will be sentenced on December 2, 2019.

INVESTIGATING AGENCY

Homeland Security Investigations

Assistant U.S. Attorneys Janet Cabral (619) 546-8715 or Amanda Griffith (619)546-8970

NEWS RELEASE SUMMARY – September 16, 2019

SAN DIEGO – Isaiah Smallwood Jackson, a former Navy military police officer, was sentenced today to 20 years in prison for sex crimes involving a 14-year-old girl.

Jackson was convicted by a federal jury in October 2018 of sexual exploitation of a minor and enticement of a minor. At the time of the offense in September of 2017, Jackson, 21, was on active duty with the U.S. Navy.

The jury found that Jackson created a profile on Spotafriend, a teens-only mobile application designed to allow teens to meet new friends. Because the terms of service for Spotafriend did not allow users over the age of 19 to create an account, Jackson created a user profile listing his name as “Logan” and listing his age as 17. In the description portion of the profile, however, he stated he was actually 21.

Using Spotafriend, Jackson began chatting with a 14-year-old girl from northern San Diego County. Early in their conversation, after making sure the victim knew he was 21, Jackson told the victim “is it bad that I don’t care about your age?” Jackson got the victim’s phone number and continued communicating with her through text messages. In one text Jackson asked the victim, “Okay cuteness, so are you ready to lose your virginity?” Jackson also enticed the victim to take explicit nude photos of herself to send to him.

Jackson got the victim’s home address and convinced her to permit him come to her home, telling her when she expressed that she was nervous, “Please I’m dying to see you” and “Take a leap of faith.” Once at the victim’s home, Jackson engaged in sexual acts with her, outside the home. Shortly after Jackson left, the victim reported the contact to her sister, who called the Oceanside Police Department.

Jackson was arrested by the Oceanside Police Department on September 21, 2017 and charged with state offenses relating to his sexual contact with the victim. At the time of his arrest, Jackson made a statement admitting he had communicated with the victim, and that he had gone to her house and engaged in sexual acts with her.

On October 25, 2017, Jackson was charged in federal court with use of a facility and means of interstate commerce to attempt to induce a minor to engage in unlawful sexual activity. Thereafter, a federal grand jury returned an indictment charging Jackson with sexual exploitation of a minor and enticement of a minor. A federal jury convicted Jackson on all counts after trial.

At sentencing, the victim’s family talked about how the victim has been devastated as a result of the contact with Jackson and is now afraid to be out in public or around men. 

In imposing sentence, the Hon. Cynthia A. Bashant told Jackson that the Court “cannot ignore you engaged in clearly predatory conduct” by using a teens-only application to meet the victim and then continuing to communicate with the victim to convince her to let him come to her house.

Following his time in custody, Jackson will be on supervised release for a period of 10 years, during which he will be required to register as a sex offender, will be prohibited from initiating contact with minors or loitering in places primarily frequented by minors, and will be prohibited from accessing the internet except on devices where his use can be monitored by U.S. Probation Officers.

This case serves as a reminder for parents of the dangers posed by the internet, and the need for teenagers and their parents to maintain open lines of communication regarding online activity. Defendant’s abuse of a seemingly safe chat application for teens allowed Jackson access to this 14-year-old victim that he would not otherwise have had. From the time Jackson began chatting with the victim, until the time she reported the sexual contact to the police, just over 24 hours elapsed. Parents are urged to educate themselves and discuss these dangers with their children.

DEFENDANT                                               Criminal Case No. 18cr1805-BAS

Isaiah Smallwood Jackson                    Age: 23                     Vista, CA

SUMMARY OF CHARGE

• Count 1 – Title 18, United States Code, Section 2251(a), Sexual Exploitation of a Minor
• Count 2 – Title 18, United States Code, Section 2422(b) – Enticement of a Minor
• Criminal forfeiture – Title 18, United States Code, Section 2243 and 2428

Maximum penalties:

• Count 1 – 30 years in prison, with a minimum mandatory 15 years in prison
• Count 2 – Life in prison, with a minimum mandatory 10 years in prison
• As to all Counts, $250,000 fine

INVESTIGATING AGENCIES

Oceanside Police Department

 

Sherri Walker Hobson (619) 546-6986    

NEWS RELEASE SUMMARY – September 16, 2019

SAN DIEGO – Christopher James Stracuzzi entered a guilty plea in federal court today, admitting that he  distributed fentanyl that resulted in the death of a San Diego man.  Stracuzzi will be sentenced on December 2, 2019 at 9 a.m., before U.S. District Judge Thomas J. Whelan.

According to court documents, on July 18, 2018, at approximately 8:43 p.m., the San Diego Police Department received a 911 call about an unconscious male passed out on the floor in his apartment.  His roommate attempted to perform CPR even though she was groggy from have taken a pill herself.   Paramedics arrived on scene and unsuccessfully attempted resuscitation.  The man was pronounced dead at 9:12 p.m.

The roommate of the deceased man told investigators that Stracuzzi sold the deceased 12 tablets that the deceased believed to be oxycodone pills.  Both the roommate and the deceased man took a pill. After learning from the Medical Examiner's Office that her roommate died of a fentanyl overdose, the roommate suspected that the pills they had taken that fateful night were not oxycodone, but were in fact, counterfeit pills containing fentanyl. When the DEA Southwest Regional Laboratory, tested the remaining 10 tablets, chemists determined they contained fentany1. 

The Drug Enforcement Administration, Homeland Security Investigations, San Diego Police Department, Federal Bureau of Investigation and California State Department of Health Care Services, along with the San Diego District Attorney’s Office and the U.S. Attorney’s Office, are part of a team that investigates and prosecutes fatal overdose cases.      

“Dealers beware: You will be held responsible for the deaths of your customers,” said U.S. Attorney Robert “But we can’t reverse the tragedy of the shattered lives of the victims and their families. I cannot say this any more strongly or directly: Don’t take these black market pills. You may pay the ultimate price for this terrible mistake.”

“Tragic cases of overdose deaths caused by fentanyl will leave scars on families in our communities for decades to come,” said HSI San Diego SAC Dave Shaw. “HSI is committed to working with our partners to remove this scourge from our streets. We urge everyone to take the time to learn about these deadly drugs and take the steps necessary to protect their families and loved ones.”

“We are living in a world where drug cartels are getting rich from making counterfeit pills that contain fentanyl and we are paying a heavy price, in blood,” said DEA Special Agent in Charge Karen Flowers.  “There is no quality control or FDA oversight.  If you didn’t get that pill directly from a pharmacy with a prescription in your name, you won’t be able to tell if the pill is real or counterfeit.  Even the experts can’t tell until it is examined in a laboratory.  When you crush or swallow that blue pill that looks like a 30 mg oxycodone tablet, you are risking your life. I’ll say it again, your dealer, BFF, lover, or classmate may become your murderer and the medical examiner your personal physician.  Life is precious. Don’t gamble yours away for a quick high that sends you home from the party in a body bag.”

These case is  being prosecuted by Assistant United States Attorney Sherri Walker Hobson.

DEFENDANT                                               Case Number 19CR0368W

Christopher James Stracuzzi                                                               San Diego

SUMMARY OF CHARGES

Title 21 U.S.C. §§ 841(a) & 841(b)(1)(C) Distribution of Fentanyl Resulting in Death

Title 18 U.S.C. § 2 Aiding and Abetting

Maximum penalty:  Life in custody, with a mandatory minimum penalty of 20 years

AGENCIES

Drug Enforcement Administration

Homeland Security Investigations

San Diego Sheriff’s Office

San Diego Police Department

Federal Bureau of Investigation

Department of Health Care Services

  

Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924

NEWS RELEASE SUMMARY – September 12, 2019

SAN DIEGO – Almamy Baba Ly pleaded guilty in federal court today to identity theft charges, admitting that he misused the identity of a deceased American citizen for 31 years in order to obtain identification documents and thousands of dollars in federal, state and local government benefits.

During a hearing before U.S. Magistrate Judge Jill L. Burkhardt, Ly acknowledged that in 1988 he assumed the identity of Lyle Lindsey, a native San Diegan and son of a military veteran, who died in a tragic automobile accident as a toddler in 1957.  Ly admitted that he was born in Senegal, that he was without legal status to reside in the United States, and that he used an altered copy of Lindsey’s birth certificate to apply first for a Social Security number and then for a California Identification Card and Driver’s License. Over the next 31 years, Ly was convicted of numerous crimes, including drug sales and robbery, under Lyle Lindsey’s identity.

Ly also pleaded guilty to Receiving Stolen Public Money, admitting that from 2012 until 2019, he used Lindsey’s identity to apply for and receive over $80,000 in federal student loans and Pell Grants.  In his plea agreement, Ly also admitted to applying for CalFresh / Supplemental Nutrition Assistance Program (SNAP) benefits in 2017 as Lindsey, and to thereafter receiving thousands of dollars in benefits that he was not legally entitled to receive.

In July 2019, United States Border Patrol agents simultaneously served a search warrant and arrested Ly at his residence in La Mesa, California.  During the search, agents seized a recently issued Senegalese national identification card with Ly’s true name and date of birth.  The arrest and search warrant were the culmination of a lengthy investigation by the United States Border Patrol, with the assistance of the California Department of Motor Vehicles, the Department of State, and the United States Embassy and Homeland Security Investigations in Dakar, Senegal.

“This was an especially sophisticated and devious fraud that victimized U.S. taxpayers for decades and forced a family to revisit a traumatic loss,” said U.S. Attorney Robert Brewer. “Finding out that someone is committing crimes in the name of a child who was lost many years ago brings unacceptable anxiety to his survivors. Identity thieves target hundreds of thousands of deceased Americans every year, but I’m proud to say that because of the efforts of federal agents and prosecutor Jeffrey Hill, one of the most egregious and enduring violators has been stopped.”

On behalf of the United States Border Patrol, San Diego Chief Patrol Agent Douglas E. Harrison stated: “I am grateful and proud of the tenacity, persistence, and hard work that our agents and law enforcement partners have demonstrated over the past several months, which have resulted in this conviction.”

As a part of his plea agreement, Ly agreed to make full restitution to the United States Department of Education and to the County of San Diego for the $88,551 in government benefits that he fraudulently obtained by his crimes.  Ly faces up to 55 years in federal prison and a fine of up to $1 million at his sentencing before U.S. District Judge Anthony J. Battaglia on December 2, 2019. 

DEFENDANT                       Case Number 19-cr-2864-AJB          

Almamy Baba Ly                   La Mesa, California.

SUMMARY OF CHARGES

Unlawful Production of an Identification Document – Title 18, U.S.C., Section 1028(a)(1)

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

Theft of Public Property – Title 18, U.S.C., Section 641

Maximum penalty: Ten years in prison, $721,817.70 fine, restitution

AGENCIES

United States Border Patrol – Sector Intelligence Unit / Chula Vista Station

United States Homeland Security Investigations

California Department of Motor Vehicles Investigations Division

Bureau of Public Assistance Investigations, County of San Diego

Assistant U. S. Attorney Christopher P. Tenorio (619) 546-8413

IVM Indictment - Click HERE

El CENTRO – A dozen leaders of Imperial Valley Ministries, including the former pastor, are charged in an indictment unsealed today with subjecting dozens of mostly homeless people to forced labor, coercing them to surrender welfare benefits and compelling them to panhandle up to nine hours a day, six days a week, for the financial benefit of the church leaders.

The defendants were arrested today in El Centro, San Diego and Brownsville, Texas and charged with conspiracy, forced labor, document servitude and benefits fraud. The local defendants are scheduled to be arraigned in federal court in El Centro today at 1:30 p.m. before U.S. Magistrate Judge Ruth Bermudez Montenegro.

“The indictment alleges an appalling abuse of power by church officials who preyed on vulnerable homeless people with promises of a warm bed and meals,” said U.S. Attorney Robert Brewer. “These victims were held captive, stripped of their humble financial means, their identification, their freedom and their dignity.”

“Human trafficking robs victims of their most basic human rights,” said FBI Special Agent-In-Charge Scott Brunner.  “Victims of human trafficking are often unseen by society, left pleading in silence. Today, the FBI is proud to break up the labor trafficking alleged to have been committed by the leaders of Imperial Valley Ministries in Imperial Valley and San Diego. This investigation is an example of the tireless and dedicated work undertaken by FBI agents and our partners at the El Centro Police Department in combating this heinous crime.”

Imperial Valley Ministries, or IVM, operates a non-denominational church headquartered in El Centro, and has opened approximately 30 affiliate churches throughout the United States and Mexico, including locations in Los Angeles, Santa Ana and San Jose in California; in Las Vegas, Nevada; Phoenix, Arizona; and Brownsville, Texas. IVM’s stated purpose is to “restore” drug addicts at faith-based rehabilitation group homes and raise money to open churches in other cities to do the same.

In addition to the church and main office, IVM owned and operated three group homes the El Centro area, plus one in Calexico and one in Chula Vista. Many victims were recruited from outside of El Centro, including San Diego, and as far away as Texas. IVM leaders allegedly induced many to participate with offers of free food and shelter with the false promise that victims would be provided with resources to eventually return home.

According to the indictment, defendants checked in the victims at the IVM group homes, where they were required to sign agreements to adhere to rules. Many victims, including many who did not require drug rehabilitation services, claimed they were later held at IVM properties against their will.

The indictment alleges that church leaders locked victims inside group homes with deadbolt locks; confiscated identification documents such as driver’s licenses, passports, immigration papers and identification cards, in order to prevent victims from escaping; stole victims’ welfare benefits; and required adherence to rules such as, “you are not to discuss things of the world” and “the only thing to be read is the holy bible” and “if any of the rules are broken there will be discipline.”

Windows were nailed shut at some group home locations, leading a desperate 17-year-old victim to break a window, escape, and run to a neighboring property to call police. The teen was brought to the El Centro Medical Center for cuts sustained from the escape.

Defendants are alleged to have extorted the surrender of participants’ Electronic Benefits Transfer (EBT) cards obtained through the Supplemental Nutrition Assistance Program (SNAP), administered by the CalFresh Program, by using actual and threatened fear of economic loss. The IVM leaders allegedly then used the SNAP benefits for improper purposes, including providing them to ineligible persons, and improperly instructing the intended recipients to not seek or accept outside employment.

Leaders of IVM, including former Pastor Victor Gonzalez, refused to return the confiscated EBT cards and personal property to participants who asked to leave. IVM members also allegedly used various means to coerce participants to stay and continue panhandling for IVM’s financial benefit by saying their children would be taken away if they left, that they would not receive transportation home, or that loved ones had rejected them and they must stay because “only God” loved them. Punishments for violations of home rules, including talking about the outside world, allegedly included the withholding of food.

In another instance, church leaders allegedly refused to allow a diabetic victim to obtain medicine, medical supplies and even food in response to low blood sugar. She was able to escape and get help.

All of the identified victims are now free. Victim specialists have been on standby to provide immediate assistance to any additional victims we find in order to provide them with shelter, transportation or any necessary support services.

“This is the most significant labor trafficking prosecution in this district in many years,” Brewer said. “These cases are few and far between because many victims live in captivity and fear, powerless to report the crimes against them. My office wants victims to know that we are here to help you.”

Brewer praised the FBI and prosecutor Christopher Tenorio for their excellent work on the case. And he expressed appreciation for the assistance of the Imperial County District Attorney’s Office, the El Centro Police Department, the Imperial County Sheriff’s Office, the U.S. Marshals Service, the U.S. Border Patrol and Imperial County Social Services, for their assistance with this case.

To report suspicions of labor trafficking, please contact the FBI at 1-800-CALLFBI (225-5324) or https://tips.fbi.gov/. If you know someone who is a victim of human trafficking, resources can be found at National Human Trafficking Hotline – 1-888-373-7888.

Assistant U.S. Attorney Christopher Tenorio is prosecuting the case with assistance from the Department of Justice Civil Rights Division’s Human Trafficking Prosecution Unit.

IVM Presentation - Click HERE

DEFENDANTS  Case Number 19CR3255-BTM       Victor Gonzalez Age: 40 Brownsville, TX Susan Christine Leyva
(aka Susan Christine Gonzalez,
Christy Gonzalez) Age: 39  Brownsville, TX Jose “Joe” Anthony Diaz Age: 39 Brownsville, TX Mercedes Gonzales (aka Mercy Diaz)  Age: 37 Brownsville, TX Arnoldo Bugarin  Age: 47 El Centro, CA Azucena Torres (aka Susana Bugarin)   Age: 43 El Centro, CA Sergio Partida   Age: 32 El Centro, CA Ana Karen Robles-Ortiz (aka Karen Partida) Age: 29 El Centro, CA Jose “Chito” Morales Age: 47 San Diego, CA Jose Demara Flores (aka Joe Flores)  Age: 52 Brownsville, TX Jose Gaytan Age: 47 El Centro, CA Sonia Murillo  Age: 51 El Centro, CA

 

SUMMARY OF CHARGES

Conspiracy – Title 18, U.S.C., Section 371
Maximum penalty: Five years in prison and $250,000 fine

Forced Labor – Title 18, U.S.C., Section 1589
Maximum penalty: Twenty years in prison and $250,000 fine

Document Servitude – Title 18, U.S.C., Section 1592
Maximum penalty: Twenty years in prison and $250,000 fine

Food Stamp Act (Benefits Fraud) – Title 7, U.S.C., Section 2024(b)
Maximum penalty: Twenty years in prison and $250,000 fine (If the benefits were $5,000 or more)

 

AGENCY

Federal Bureau of Investigation

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

 

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

NEWS RELEASE SUMMARY – September 9, 2019

SAN DIEGO – Leopoldo Lara Aguilera, a former Wells Fargo personal banker, pleaded guilty in federal court today to money laundering conspiracy and bank fraud. 

Aguilera was arrested by FBI agents on May 2, 2019, for his participation in an international money laundering organization based in Tijuana, Mexico which operated primarily in San Diego.

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

Aguilera pleaded guilty to opening twenty-six bank accounts for the money laundering organization, including eleven that were created by Aguilera using fictitious identities.  Specifically, Aguilera used his position as a personal banker with Wells Fargo Bank to knowingly enter false names, passport numbers, and dates of birth on the fictitious bank accounts.  These eleven fictitious accounts alone were used by the criminal organization to wire transfer a total of $3.8 million to Mexico, the vast majority of those wire transfers were conducted by Aguilera himself.  Aguilera's use of these fictitious accounts were identified by Wells Fargo and brought to the attention of the FBI.   

In conjunction with Aguilera’s arrest, the FBI identified and seized seventeen bank accounts that belonged to the money laundering organization containing in excess of $230,000.

The case was investigated by the FBI San Diego Cross Border Violence Task Force and the U.S. Attorney’s Office for the Southern District of California.  The investigation was assisted by the participation of Wells Fargo Bank’s internal investigators in Arizona and California.  This case is being prosecuted by Assistant U.S. Attorney Blanca Quintero.

DEFENDANT                                                                       Case Number: 19-CR-1955-BAS

Leopoldo Lara Aguilera                           Age:  57                                                 Tijuana, Mexico

SUMMARY OF CHARGES

Money Laundering Conspiracy – Title 18, U.S.C., Sections 1956(h) and 1957
Maximum penalties: 20 years’ imprisonment and $500,000 fine

Bank Fraud – Title 18 U.S.C., Section 1344
Maximum Penalties: 30 years’ imprisonment and $1,000,000 fine 

AGENCIES

Federal Bureau of Investigation’s San Diego Cross Border Violence Task Force

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

 

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

NEWS RELEASE SUMMARY – September 5, 2019

SAN DIEGO – A Las Vegas business owner admitted today to running a years-long conspiracy to import counterfeit electronics from China into the United States. 

During a hearing this morning before U.S. Magistrate Judge Barbara L. Major, Saad Ahmed pleaded guilty to Conspiracy to Traffic in Counterfeit Goods. 

Ahmed, 32, owns and operates PhonePartsUSA, a Las Vegas, Nevada-based company that sells cellular telephone parts and other electronics throughout the United States—including to customers in San Diego.  As part of his plea agreement, Ahmed acknowledged conspiring with a variety of individuals in China to bring counterfeit cell phone parts and accessories from China to the United States.  The conspiracy stretched back to at least September 2012, according to court documents.

PhonePartsUSA trafficked $1,499,999 worth of counterfeit goods during this period, per Ahmed’s plea agreement.  The phony merchandise bore trademarks from Samsung, Apple and the electronic quality certification company UL, but were actually inauthentic copies.  The charges against Ahmed also allege that he grossly undervalued his international imports to deflect U.S. Customs’ attention from his shipments. 

Ahmed agreed to pay restitution to the three trademark holders in an amount totaling $269,681, which constituted the net proceeds received by Ahmed’s business from trafficking in the counterfeit merchandise.  Ahmed also agreed not to contest the forfeiture of 4,453 cell phone parts and accessories seized from PhonePartsUSA as part of a search by Homeland Security Investigations last summer.  

“Counterfeit goods confuse and deceive the public, damage legitimate manufacturers, and can even pose a serious risk to consumers’ safety,” said U.S. Attorney Robert Brewer.  “This office and our agency partners will aggressively prosecute who seeks to make a quick illegal profit at the public’s expense.”

 “Trafficking counterfeit merchandise hurts legitimate businesses and poses a significant public safety risk as these individuals prey on unsuspecting consumers who believe they are getting name brand products at a reduced price,” said Francisco Burrola, Special Agent in Charge, Homeland Security Investigations (Nevada), U.S. Immigration and Customs Enforcement. “HSI Nevada agents are committed to conducting intellectual property theft investigations that not only protect the companies who have trademarked licensed products, but also the consumers who believe they are buying authentic and/or safe products.”

Ahmed is scheduled to be sentenced on December 9, 2019, before U.S. District Judge Thomas Whelan.

DEFENDANT                       Case Number 19-cr-3401-W

Saad Ahmed                           Las Vegas, NV                       Age: 32

SUMMARY OF CHARGES

Conspiracy to Traffic in Counterfeit Goods – Title 18, U.S.C., Sections 371 & 2320(a)

Maximum penalty: Five years in prison, $250,000 fine (or twice the pecuniary gain or loss), restitution and forfeiture.

AGENCY

Homeland Security Investigations

U.S. Customs & Border Protection

Assistant U. S. Attorney Matthew Brehm (619) 546-8983

SAN DIEGO – Robert Lorifice, a North County professional skateboarder, and his then-girlfriend Elizabeth Alexandra Landis, pleaded guilty in federal court today to possessing methamphetamine and heroin with the intent to distribute.

Lorifice and Landis admitted to possessing the methamphetamine, heroin and other controlled substances with the intent to distribute them and that Lorifice, with Landis’ assistance, coordinated deals utilizing phone calls, text messages and communication through other apps; and they admitted to selling methamphetamine, heroin and other controlled substances for money.

For example, on September 7, 2018, Landis sent a text message that read: “I have bomb dark [heroin] you should try and I got [narcotics] and even some really bomb blue [methamphetamine] - the real deal. And bomb kush [marijuana] too. If u want to stop by here on ur way up let me know. I am gonna be heading down to sports arena a minute so if u aren’t leaving just yet I can swing by there.”

Lorifice and Landis admitted in their plea agreements that, when a search warrant was executed at Lorifice’s house in Encintitas on September 26, 2018, he did not answer the door and instead disposed of an unknown quantity of blue methamphetamine and other drugs down the toilet and sink in his master bedroom’s bathroom.

During the search of Lorifice’s residence, investigators found Lorifice and Landis in the master bedroom along with approximately 193 grams of methamphetamine, 231.6 grams of heroin, Roxicodone pills, more than 800 Xanax pills, a yellow powdery substance, marijuana, psilocybin mushrooms, a digital scale, packaging materials, three cell phones and approximately $16,824.

Lorifice and Landis further admitted that, on December 14, 2018, while Lorifice was out on bail on a state case, investigators executed a second search warrant at his same residence in Encinitas and Lorifice attempted to flush a tennis ball-sized chunk of methamphetamine down the toilet in the master bedroom’s bathroom. Again, Landis was also found in the master bedroom with Lorifice along with approximately 31 grams of black tar heroin, 18 grams of methamphetamine, $10,926 in currency, a digital scale and various pills.

Lorifice and Landis also admitted the $16,824 and the $10,926 seized during the search warrants were proceeds from drug trafficking and was also currency they intended to use to facilitate their drug  trafficking activities.

Lorifice and Landis are schedule to be sentenced on November 22, 2019 at 9 a.m. by U.S. District Judge Dana M. Sabraw.

“It’s unfortunate that a public figure who is admired by kids chose to travel down this road,” said U.S. Attorney Robert Brewer. “We have a very big methamphetamine problem in our county right now, plus a nationwide opioid epidemic is raging, and we are going after anyone who sells the poison that is destroying lives and families and communities.”

"The successful conclusion of this case serves as a strong warning to drug dealers who operate on the streets of San Diego," said FBI Special Agent In Charge Scott Brunner. "Day in and day out, the FBI and our law enforcement partners work together in order to keep deadly narcotics off the streets and hold drug dealers accountable.  This is an example of the important work we do with our partners at the San Diego Sheriff’s Department. "

“The San Diego Sheriff's Department embraces the collaborative efforts between local law enforcement; specifically the Sheriff's North Coastal Street Narcotic and Gang Team, and our federal partners, in ensuring that San Diego County continues to be the safest urban county in the nation,” said Sheriff’s Lieutenant James Cady.

This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section.  Formed in 2019, by U.S. Attorney Robert Brewer, 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.

DEFENDANTS                                            Case Number 19cr1211-DMS                                             

Robert Lorifice                                               Age: 31                       Encinitas, CA

Elizabeth Alexandra Landis                           Age: 27                       Encinitas, CA

SUMMARY OF CHARGES AGAINST LORIFICE

Possession of methamphetamine with intent to distribute – Title 21, U.S.C., Section 841(a)(1)

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

Possession of heroin with intent to distribute - Title 21, U.S.C., Section 841(a)(1)

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

AGENCY

San Diego Sheriff’s Department

Federal Bureau of Investigation

North County Gang Task Force

North Coastal Street Narcotic and Gang Team

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

Assistant U. S. Attorney Michael G. Wheat (619) 546-8437    

NEWS RELEASE SUMMARY – September 3, 2019

SAN DIEGO – Neil Edwin Valera, a U.S. citizen who resides in Tijuana, was arraigned in federal court today in connection with the deaths of three Chinese migrants, including a mother and her 15-year-old son, who were found in the trunk of Valera’s BMW two days after he crossed into the United States through the San Ysidro Port of Entry in the same car.

Valera, a truck driver from El Paso, Texas, was taken into custody at the downtown bus station on Saturday. He was charged via complaint with Encouraging Aliens to Enter Resulting in Death and Bringing in Aliens without Presentation for Financial Gain.

On August 11, 2019, at 4:54 p.m., San Diego police received an emergency 911 call from a person reporting a foul odor and blood dripping from a suspicious vehicle with Texas license plates parked near the 2100 block of Jaime Avenue in San Diego.

San Diego police officers discovered a 1999 silver BMW with a Texas license plate. The officers lifted the trunk and found what initially appeared to be two deceased Asian females. Homicide detectives found an additional victim, an Asian male, pressed up against the rear wall of the trunk. A witness said the car was first noticed two days earlier and no one was seen coming or going.

Video recordings show the same car crossing into the United States from Mexico on August 9, 2019, at the San Ysidro port of entry at 3:14 p.m. According to the complaint, the driver was Valera, the registered owner of the vehicle. Valera used his Sentri card to enter into the U.S. After that day, Valera only crossed into the United States on foot, through pedestrian lanes at the San Ysidro Port of Entry.

“These tragic cases are grim reminders that attempting to cross into the United States illegally in the trunk of a car – and putting your faith, hope and future in the hands of smugglers – is extremely dangerous,” said U.S. Attorney Robert Brewer. “My office will aggressively prosecute those who smuggle others into the United States for financial gain, place vulnerable people in grave danger, and recklessly cause deaths.”

This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section.  Formed in 2019, by U.S. Attorney Robert Brewer, 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.

DEFENDANT                                               Case Number 19mj3525                                          

Neil Edwin Valera                                          Age: 50           Tijuana

SUMMARY OF CHARGES

Encouraging Aliens to Enter Resulting in Death – Title 8, U.S.C., Section 1324(a)(1)(A)(vi) and (B)(iv)

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

Bringing in Aliens without Presentation for Financial Gain – Title 8, U.S.C., Section 1324(a)(2)(B)(ii)

Maximum penalty: Mandatory minimum three years, up to 15 years in prison

AGENCY

San Diego Police Department

Homeland Security Investigations

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

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

 

Assistant U.S. Attorneys Amanda Griffith (619) 546-8970 or Janet Cabral (619) 546-8715

NEWS RELEASE SUMMARY – August 30, 2019

SAN DIEGO – Carsten Igor Rosenow was convicted by a federal jury today of attempted sexual exploitation of a child and possession of child pornography.

Rosenow, a former chief marketing officer for a San Diego tech company, came to the attention of law enforcement when the FBI received information that Rosenow was communicating through Facebook with what appeared to be minor females living in the Philippines, using an account under the name “Carlos Senta.” The FBI also uncovered evidence that Rosenow traveled regularly to the Philippines, and appeared to be engaging in sexual activities with minors.

The FBI was alerted that Rosenow was scheduled to return to the United States from the Philippines in June of 2017, and he was arrested by FBI agents when he arrived at the airport in San Diego on June 21, 2017. Rosenow’s baggage and residence were searched pursuant to search warrants. According to evidence presented at trial, three devices seized from Rosenow’s luggage contained videos, produced by Rosenow while in the Philippines, showing Rosenow engaging in sexual acts with minor females. Additional devices seized from his residence also contained visual depictions of Rosenow engaged in sexual acts with minors while in the Philippines.

Facebook records introduced into evidence at trial established that prior to meeting with one of the girls, Rosenow was told she was 12 years old. While engaged in the sexual activity with the girl, she told Rosenow she was 15. Rosenow also admitted as part of the evidence at trial that he knew that another video, which showed him engaged in sexual acts with three minor females, one of whom was a prepubescent female, was produced by him while in the Philippines

Rosenow testified at trial and admitted that while he was abroad in the Philippines for work, he had sex with girls who he knew were minors, which is defined under federal law as anyone under the age of 18.  The jury found the defendant guilty of both charges. The court set sentencing for December 2, 2019.

This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section of the U.S. Attorney’s Office for the Southern District of California.  Formed in 2019, by U.S. Attorney Robert S. Brewer, Jr., 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.         

DEFENDANT                                               Criminal Case No. 17cr3430-WQH

Carsten Igor Rosenow                                    Age: 55           San Diego, CA

SUMMARY OF CHARGE

• Count One – Title 18, United States Code, Section 2251(c), Attempted Sexual Exploitation of a Child – Production of Child Pornography
• Count Two – Title 18, United States Code, Section 2252(a)(4)(B), Possession of Images of Minors Engaged in Sexually Explicit Conduct

Maximum penalties:

• Count One - 30 years in prison, with a mandatory minimum 15 years in prison
• Count Two – 20 years in prison
• As to all Counts, $250,000 fine

INVESTIGATING AGENCIES

Federal Bureau of Investigation

 

Assistant U.S. Attorneys Cindy Cipriani (619) 546-9608 and Larry Casper (619) 546-6734

NEWS RELEASE SUMMARY – August 30, 2019

SAN DIEGO – Keri Cuppage is on a scuba diving trip to Florida this Labor Day weekend to visit her daughter.

But it’s not what you think.

Her daughter, Tiffany Hansen, who died in San Diego on January 23, 2018 at age 26 of a fentanyl overdose, is resting at the bottom of the ocean she dearly loved. Her ashes were used to create a sea turtle sculpture which was placed in a manmade underwater memorial reef about 3 miles east of Key Biscayne near Miami, Florida.

Cuppage, who lives in San Diego, chose to commemorate Opioid Awareness Day, which is tomorrow, by descending 40 feet to the ocean floor to see that turtle and to honor, remember and grieve the young woman whose nickname was “Princess” and whose passions were the beach, mermaids and all things Disney, and whose death shattered her mother’s world. Cuppage managed to beat the hurricane that’s heading toward Miami by doing the dive a day earlier than planned.

“She brought love, joy and silliness; spreading infectious laughter into everyone’s life,” Cuppage wrote in an email about her daughter. “She was deeply loved by her family and friends. She is missed every day.” Cuppage said she plans to spend every “Opioid Awareness Day” like this.

In conjunction with Overdose Awareness Day on August 31, 2019, U.S. Attorney Robert Brewer is again warning the community about the dangers of opioids and fentanyl-laced drugs and sharing photos of numerous victims whose lives were cut short due to overdose. 

They include an avid fisherman and father of three girls. A gifted soccer player. A young man who loved riding dirt bikes, listening to music and going to concerts. And others. All under 50. All died of opioid overdoses – mostly fentanyl.

“We are losing far too many San Diegans to a drug that many don’t even know they are taking,” Brewer said.  “Counterfeit oxycodone pills – known as blue M-30s – have stolen the lives of husbands and wives, sons and daughters, and even a toddler who swallowed a pill that fell out of his dad’s pocket. Cocaine laced with fentanyl is another danger: It nearly killed two college students who had no idea they were ingesting an opioid 50 times stronger than heroin. Please understand the huge risks of street and ‘dark web’ drugs – they can kill you! Be smart, don’t take that risk.” 

Addiction and overdose cause tremendous suffering not only to the victim but to surviving family members, friends and communities.

Erica Sanfillipo, a 27-year-old registered nurse and mother of a young child, became addicted while trying to manage pain associated with two car accidents in a six-month period. She died of an opioid overdose on June 28, 2015.

Her mother, Patricia Gary, wrote in an email that Erica’s addiction “quickly became something not only she was battling, but our entire family as well.  See, this disease has no barriers nor does it discriminate.  Eventually all the things that she loved and that were important to her no longer mattered – all that mattered was the next fix.  In the end, Erica not only paid the ultimate price, but so did her child, parents, brother, aunts, uncles and many close friends! WE WERE ALL IMPACTED BY ADDICTION!” 

Fentanyl-related deaths are rapidly climbing to unprecedented levels. The San Diego County Medical Examiner’s Office reports 50 confirmed fentanyl-related overdose deaths so far this year, plus another 28 suspected but yet-to-be confirmed cases with four months remaining in the year. Should this trend continue for the remainder of 2019, the death toll could potentially reach 130, which would amount to a 47 percent increase over last year’s total of 90 deaths, and a staggering 787 percent hike over five years ago when there were 15. The victims are overwhelmingly male, and the average age is 36, with the youngest 18 and the oldest 66.

Fentanyl is 30-50 times more powerful than heroin and so dangerous that in its purest form, even a tiny amount can be deadly. According to law enforcement reports, the price of fentanyl in 2019 – whether in powder form and pill form – is declining, meaning that availability of both forms are is increasing in our community.

The U.S. Attorney’s Office and District Attorney’s Office are working closely with the Medical Examiner’s Office and its law enforcement partners on overdose cases involving fentanyl to trace the origin of these deadly substances and build cases against suppliers.

Under federal law, sellers and suppliers of drugs that cause death or serious bodily injury face a very stiff penalty -- a 20-year mandatory minimum sentence.  So far, the U.S. Attorney’s Office has charged about a dozen alleged dealers with that 20-year mandatory minimum offense.

In one such case, the defendant in U.S. v. Maxwell Gaffney (17CR3330-MMA) was swiftly convicted after a week-long trial and is now awaiting imposition of what could be at least a 20-year mandatory minimum sentence.  In another recent case, defendant Corey Green (18CR2249-AJB) entered a guilty plea to heroin distribution charges and acknowledged that a death ensued; he was sentenced to 151 months in custody. 

“These death investigations cannot bring back beloved family members but they do get deadly drugs off the street quickly,” Brewer said. “Moreover, the ensuing prosecutions send a clear message that traffickers will face serious repercussions. We hope these cases also bring a measure of comfort, peace and justice to beloved family members who face this devastating loss, with no option but to grieve for what might have been.”    

In addition to prosecuting opioid dealers and smugglers, the U.S. Attorney's office raises awareness of harm reduction, prevention and education efforts, through the district's newly named Opioid Coordinators Larry Casper and Dylan Aste, and Outreach Director Cindy Cipriani, who Co-Chairs the San Diego Prescription Drug Abuse Task Force. The U.S. Attorney’s Office has implemented a Fentanyl Forum and a Fentanyl Working Group, both of which offer training and enable law enforcement partners to easily share knowledge and best practices.   The office is also co-sponsoring the Western States Opioid Summit in San Diego on Nov. 7-8, which will bring multiple disciplines together to address every aspect of the Opioid Crisis.  U.S. Surgeon General Vice Admiral Jerome Adams will be a featured speaker, along with leaders from the prevention, public health, treatment and law enforcement communities.

U.S. Attorney Brewer urged those struggling with substance use disorder and their family members to talk to a doctor or pharmacist about Naloxone, which can reverse an opioid overdose. 

If you encounter fentanyl in the form of counterfeit pills or bulk powder, please reach out to law enforcement and/or refer to resources listed at https://www.sandiegorxabusetaskforce.org/community-resources

To learn how to assist a person who is overdosing, including how to administer Naloxone, please see https://www.youtube.com/watch?v=nurz9qPGKws&feature=youtu.be.

The U.S. Attorney’s Office is prosecuting several cases associated with victims listed below, including the alleged dealer who provided fentanyl to Tiffany Hansen, resulting in her death. That case, U.S. v. Uriah Odish, 18-CR-1812, is scheduled for trial on October 28. Please scroll down to see photos and details.

*Family members of victims who are willing to do interviews are indicated below.

Assistant U. S. Attorney Matthew Brehm (619) 546-8983

NEWS RELEASE SUMMARY – August 27, 2019

SAN DIEGO – Aldo De Jesus Gomez today became the last of three roommates to plead guilty to bank robbery and other related charges, admitting that in one instance, the trio staged a robbery at a San Diego Bank where one of the roomates worked as a teller.

Gomez pleaded guilty in federal court before U.S. Magistrate Judge Jill Burkhardt to an information charging him with Bank Robbery and Entering a Bank to Commit Larceny. Gomez and his roommates were convicted of stealing $23,070 from the Chase Bank in Mission Valley, where they pulled off an inside job with the roommate as teller. Gomez is scheduled to be sentenced on November 19 at 10:30 a.m. by U.S. District Judge Barry Ted Moskowitz.

Gomez admitted in his plea agreement that he, Jesus Ramon Garcia-Lopez, and Joe Anthony Mares  researched, planned, and entered into an agreement to steal money from the Chase Bank located at 5111 Mission Center Road in San Diego, where Garcia was a teller. They recruited a fourth individual, known to them as “Spill Will,” to serve as the getaway driver. Pursuant to their plan, Mares wrote a demand note, which read, “Give me all the money in both top and bottom drawer or someone in the lobby dies give me 30 mins before alerting anyone or I will be back and shoot people right away,” and provided it along with his clothing to Gomez.

On June 6, 2018, at approximately 10:00 a.m., Gomez entered the Chase Bank branch wearing Mares’ clothing, approached Garcia’s teller window, and passed him the demand note Mares had written, all pursuant to the plan. Garcia took the demand note and passed Gomez approximately $23,070 in cash. Gomez took the cash, left the bank, and was driven away by Spill Will. Afterwards, Gomez admitted he provided Mares and Garcia with a portion of the stolen cash and kept more than $10,000 for himself. The weekend after the theft, Gomez, Mares, and Garcia went to clubs in Mexicali, Mexico and partied together, with Gomez paying their expenses.

Gomez further admitted that, on July 13, 2018, he entered a Chase Bank in Fairfield, California, a city in Northern California, midway between Sacramento and San Francisco, and approached a teller. Gomez handed her a demand note that instructed the teller to hand him money and took $5,000 in cash from her.

Gomez also admitted that, on September 15, 2018, he entered the Chase Bank located at 2303 N. Cottonwood Drive in Imperial, California, and approached a teller. He handed her a demand note that instructed the teller to hand him money in $100, $50, and $20 denominations, and warned the teller not to alert anyone or she would get hurt. The teller provided the defendant with $3,100 in cash and Gomez fled the bank.

“We are always working with federal and local law enforcement agencies, from San Diego to Imperial Valley to the Bay Area and points beyond, to bring serial criminals to justice,” said U.S. Attorney Robert Brewer. “There was no place this defendant could have fled to escape our coordinated efforts and now his cross-state crime spree has come to an end.”

“Since June 2018, the defendant embarked on a crime spree to fund his lifestyle,” said FBI Special Agent-In-Charge Scott Brunner. “Despite the distance between these individual crimes, investigators connected the cases.  Today, Gomez has been brought to justice and is off the streets as a result of significant teamwork between the San Diego FBI Violent Crime Task Force and our law enforcement partners.”

“The successful conclusion of this case was due to coordinated and ongoing teamwork between the SDPD Robbery Unit, the FBI, and the Violent Crime and Human Trafficking Section (VCHT), said San Diego Police Lt. Julie Epperson. “Collaboration with our law enforcement partners creates a stronger defense against criminals who prey on the public.”

“This case is a testament to the collaboration and incredible working relationship of all the involved law enforcement agencies and the United States Attorney’s Office that worked together to help bring those responsible in this case to justice,” said El Centro Police Chief Brian Johnson.  “Our communities are safer because of the great work of the VCHT and local law enforcement agencies that worked tirelessly to solve these cases.  A tremendous thank you goes out to all involved.”

Garcia-Lopez and Mares were sentenced earlier this year for their roles in the Mission Valley Chase Bank theft.

This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section.  Formed in 2019, by U.S. Attorney Robert Brewer, 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.

DEFENDANTS                                            Case Number 19cr1321-BTM                                 

Aldo De Jesus Gomez                                     Age: 22                                   San Diego, CA

Related Case - Case Number 18cr4349-BTM

Joe Anthony Mares                                         Age: 22                                   El Cajon, CA

Jesus Ramon Garcia-Lopez                            Age: 21                                   Yuma, AZ

SUMMARY OF CHARGES

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

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

Entering a Bank to Commit Larceny – Title 18, U.S.C., Section 2113(a)

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

AGENCY

Federal Bureau of Investigations

San Diego Police Department

El Centro Police Department

Imperial Police Department

Fairfield Police Department