Southern District of California

NEWS RELEASE SUMMARY – August 23, 2019

SAN DIEGO – Three South American cocaine traffickers were sentenced in federal court this week after being convicted of transporting approximately 1,230 kilograms (2,706 pounds) of cocaine—worth more than $28 million USD—on the high seas.  The sentencing hearings followed a week-long trial in April in which a federal jury convicted all three defendants on all charges.

U.S. District Judge Roger T. Benitez handed down significant custodial sentences for defendants Adrian Andres Cortez-Quinonez, Segundo Marcial Dominguez-Caicedo, and Victor Gaspar-Chichande, sentencing them to 228 months, 216 months, and 160 months, respectively.  Cortez-Quinonez and Gaspar-Chichande were sentenced today; the court handed down Dominguiz-Caicedo’s sentence on Tuesday.

At trial, the United States proved that on December 31, 2017, the U.S. Coast Guard Cutter Stratton responded to a report of a suspicious go-fast vessel traveling in the Eastern Pacific Ocean, approximately 100 nautical miles north of the Galapagos Islands, Ecuador. The Stratton launched a helicopter and two small boats to intercept the vessel.

As the helicopter closed in, the defendants stopped their vessel to avoid detection. But as the helicopter circled the vessel, the defendants took off, and soon a high-speed chase on the high seas ensued.

The defendants eventually brought their vessel to a stop when they could not outrun the Coast Guard helicopter.  Dramatic video from the helicopter captured the defendants jettisoning dozens of bales of cocaine overboard.  The defendants sped away again.  With the go-fast vessel barreling through the high seas, and the helicopter in pursuit, a Coast Guard precision marksman hanging from the side of the helicopter took five shots at the vessel’s engines, disabling the vessel.  Defendants were ultimately detained by the Coast Guard, and other Coast Guard boats recovered the jettisoned cocaine.  After the defendants were transported to the United States, agents with the Drug Enforcement Administration continued the investigation.

“Defendants were not a haphazardly thrown-together motley crew.  They operated a well-oiled machine,” said Assistant U.S. Attorney Kevin Mokhtari at sentencing. “But for the incredible skill, training and acumen of the United States Coast Guard, defendants might well be celebrating a successful cocaine venture.” 

“This prosecution required precision targeting of a speeding vessel during a dramatic high seas chase,” said U.S. Attorney Robert S. Brewer, Jr. “From the capture at sea to the terrific presentation at trial this was the epitome of a team effort and I commend the U.S. Coast Guard, DEA, Assistant U.S. Attorney Kevin Mokhtari and our former Coast Guard Special Assistants, Ari Fitzwater and Emily Gibbons” 

“Coast Guard crews who risk their lives interdicting multi-ton shipments of cocaine at sea are gratified to see another successful prosecution of smugglers,” said Rear Adm. Peter W. Gautier, Commander of the 11th Coast Guard District. “I’m proud of what our people on patrol accomplish, and appreciate the U.S. Attorneys who bring these drug traffickers to justice and make Coast Guard actions worthwhile. Together our law enforcement crews at sea, investigators ashore, and prosecutors in courtrooms are working to disrupt the criminal networks behind the deadly flow of illegal drugs that threaten our nation.”   

“These men tried to bring over 24 million dosage units of cocaine into the United States.  That is so much cocaine that the 1.4 million residents of San Diego City each could have gotten over 17 dosages units.  That is crazy.  Cocaine is a dangerous drug and while it was not meant to stay in San Diego, it would have crushed the city had it made it through,” said DEA Special Agent in Charge Karen Flowers. “In this case, DEA teamed up with the U.S. Coast Guard and our law enforcement partners to save lives and protect the homeland.  These men wanted to profit off of their greed, with utter disregard for other people’s lives.  Now they will pay for their actions with 13 to 19 years of their lives.”

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.

 

DEFENDANTS                                             Case Number 18cr0421-BEN    

Adrian Andres Cortez-Quinonez                Age: 25                                 Ecuador

Segundo Marcial Dominguez-Caicedo      Age: 36                                  Colombia

Victor Gaspar-Chichande                           Age:  30                                 Ecuador

SUMMARY OF CHARGES

Conspiracy to Distribute Cocaine Onboard a Vessel Subject to the Jurisdiction of the United States – Title 46, U.S.C., Section 70503, 70506(b)

Maximum Penalty: Life in prison and $10 million fine

Possession with Intent to Distribute Cocaine Onboard a Vessel Subject to the Jurisdiction of the United States – Title 46, U.S.C., Section 70503

Maximum Penalty: Life in prison and $10 million fine

AGENCY

U.S. Coast Guard

U.S. Drug Enforcement Administration

Organized Crime and Drug Enforcement Task Force (OCDETF)

NEWS RELEASE SUMMARY – August 23, 2019

SAN DIEGO – Today in federal court Saul Clemente Monago, 31, of Utah, was sentenced by District Court Judge Dana M. Sabraw to 36 months in custody and one year of supervised release for a sexual assault on a cruise ship.  Defendant was also ordered to pay a $100 special assessment and to register as a sex offender in accordance with the Sex Offender Registration and Notification Act.

The record reflects that on October 11, 2018, the Norwegian Pearl cruise ship was docked in Ensenada, Mexico for a port call. The female victim (J.C.) and her cabin-mates had gone ashore in Ensenada, after which she returned to her room and fell asleep fully clothed on her bed.  Shortly thereafter, J.C.’s cabin-mates returned to the cabin, accompanied by Defendant Saul Monago and two other men. Within minutes, everyone but J.C., who remained sleeping on the bed, and Defendant Monago left the cabin, and their departure was captured by a cruise ship security camera in the hallway outside the cabin. Shortly thereafter, J.C. woke up to Defendant, whom she never recalled having seen or met, laying on top of her, with his hand under her shorts and inside her underwear digitally penetrating her vagina with one or more fingers. J.C. pushed Defendant off while screaming, “No! Stop!” and ran into the hallway screaming for help, terrified at what was happening when she awoke.  A ship security officer heard the loud commotion and J.C. screaming, “help” and “he is trying to rape me.” He reported to the area and encountered J.C. and a female witness from a nearby cabin outside.  Upon entering J.C.’s cabin, the security officer saw Defendant lying on one of the beds, apparently intoxicated.  Defendant, who admitted his conduct, was escorted first to the ship’s medical office and then to the Security office.

On October 14, 2018, the Norwegian Pearl docked at the San Diego Port. FBI personnel boarded the ship to investigate the assault and agents interviewed Defendant. In the interview room, Defendant spontaneously admitted his behavior, claiming that he was drunk and not behaving like himself.   FBI Agents advised Defendant that he was under arrest, after which Defendant made additional spontaneous statements admitting his inappropriate actions.

The parties jointly recommended the statutory maximum term of imprisonment of 36 months, which will be followed by a one-year term of supervised release.

“As we are all becoming increasingly aware, sexual assaults of this nature can trigger long-term emotional trauma,” said U.S. Attorney Robert S. Brewer, Jr. “I hope this sentence brings closure, comfort and a measure of peace to the victim of this egregious act.”  U.S. Attorney Brewer commended Assistant U.S. Attorney Jaclyn Stahl and the team of federal agents and victim service specialists who handled this case “with diligence and sensitivity.”  

“This sentence is an important step in obtaining justice for the victim in this case,” said FBI Special Agent In Charge Scott Brunner. “Unfortunately, sexual assaults on cruise ships are one of the leading crimes reported to and investigated by the FBI on the high seas.  The FBI is committed to working with our law enforcement partners to vigorously investigate and prosecute criminal offenses on the high seas.”

DEFENDANT                                               Case No. 18-CR-4849-DMS

Saul Clemente Monago                                  31, Utah

SUMMARY OF CHARGES

18 U.S.C. § 2244(a)(2)

Maximum Penalty: 36 months custody and 1 year supervised release

AGENCY

Federal Bureau of Investigation

SAN DIEGO -- Phillip Junior Webb, 20, was sentenced by District Court Judge Michael M. Anello in federal court today to 46 months in custody for conspiring to distribute controlled substances and smuggle undocumented individuals, including a Mexican national and Chinese national, for financial gain. 

According to the public record, at the time of the offense Webb was an 18-year-old high school senior who recruited other high school students to smuggle methamphetamine and/or fentanyl into the United States on multiple occasions.  In each instance, the juveniles had drugs strapped on their bodies as they attempted to enter the United States at the San Ysidro or Otay Mesa Ports of Entry.

In May 2018 Defendant Webb was caught attempting to bring a Chinese national and a Mexican national into the United States in the trunk of his vehicle.

In July 2018, Webb pleaded guilty in federal court to charges that he recruited classmates to smuggle methamphetamine and fentanyl.

“We cannot allow drug cartels to cavalierly recruit our youth to smuggle potent methamphetamine  and fentanyl drugs into our nation, thereby endangering our teens and contributing to our country’s addiction crisis,” said U.S. Attorney Robert S. Brewer, Jr. “We will stop this exploitation by bringing the full power of the justice system down on the recruiters who exploit these kids.”  

“Violent Mexican cartels are making money by exploiting children in the United States and Mexico,” said DEA Special Agent in Charge Karen Flowers.  “Our children, naive to the dangers, are promised money in exchange for allowing cartel members to strap drugs on their bodies in the back alleys of Tijuana, often surrounded by gun-baring cartel members, and smuggle the drugs to the US.  What these children aren’t told is that these drugs are deadly and they are putting themselves at risk to be physically exploited or even killed. Phillip Webb coerced children with the lure of easy money and the Hollywood notion of a glamorized life of crime.  His sentencing makes it clear that we will not stand by and let profiteers damage our children.” 

“Today’s sentencing of Webb is an example of justice brought to an individual conspiring to exploit juveniles for their own financial gain,” said Timothy J. Tubbs, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in San Diego.  “HSI continues to partner with CBP, other law enforcement agencies, and prosecutors to educate juveniles on the dangers, risks, and consequences of being involved in the vicious world of drug smuggling.”

“I commend the great work of CBP, HSI and DEA and recognize the unified coordination across government agencies to bring this person to justice,” said CBP Director of Field Operations for San Diego, Pete Flores. “We will continue to work diligently with our partners to stop transnational criminal organizations from exploiting and corrupting our youth.”

U.S. Attorney Brewer commended AUSA Sherri Hobson as a “force of nature,” who, inspired by the Webb investigation, helped spearhead an ambitious juvenile smuggling prevention program, in collaboration with the Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), Customs and Border Protection (CBP), the District Attorney, the San Diego Police Department, local schools, and South Bay Community Services.  Over the past year, the multi-agency prevention team made scores of presentations, which have already reached 11,580 people, including 9,250 students, more than 680 parents, 610 school staff, health and counseling professionals, 145 members of law enforcement and 215 community members. 

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.

DEFENDANT                                   Case No. 18MJ2229

Phillip Junior Webb                            Age: 20       Tijuana, Mexico

CHARGES

Count 1 – Conspiracy to Distribute Methamphetamine (21 U.S.C. 841 & 846)

Maximum Penalty: Ten years minimum to life in custody; $1 million fine

Count 2 - Bringing in Undocumented Aliens for Financial Gain (8 U.S.C. 1324)

Maximum Penatly: Three years mandatory minimum to 20 years in custody; $250,000 fine

AGENCY

Homeland Security Investigations

Drug Enforcement Administration

Customs & Border Protection

Homeland Security Investigations

San Diego County Sheriff’s Department

 

NEWS RELEASE SUMMARY – August 19, 2019

SAN DIEGO – A Ramona woman, who for ten years worked as the operations manager for a San Diego-based insurance broker, admitted today to participating in a scheme to defraud her employer of over $700,000. The scheme lasted over seven years and involved hundreds of fraudulent checks written to herself and a family member.

During a hearing this morning before U.S. District Judge Thomas J. Whelan, the defendant, Antonia Barber, pleaded guilty to one felony count of Wire Fraud.

According to her plea agreement, Barber, 51, worked as the operations manager for a local insurance brokerage firm from 2005 until June 2015. In that job, she had significant discretion over the finances of the company, and was responsible for approving expense reimbursement requests. Abusing her position, she caused hundreds of checks to be written by the company to a family member, purportedly for “records management,” when in fact such services were not provided. Additionally, she caused hundreds of checks to be written by the company to herself personally, purportedly for expense reimbursements – expenses which in fact she had not incurred. The defendant admitted that the total loss in connection with these fraudulent checks was approximately $726,000 over the course of the seven-year scheme.

“The business owners in our community have a right to the honest services of their employees,” said United States Attorney Robert S. Brewer, Jr.  “Stealing from your employer, whether done in a subtle manner over a period years or a brazen way, results in a negative hit to the bottom line that impacts competitiveness.  It will not be tolerated.”  “I also want to commend the Secret Service for their excellent investigation and AUSA Robert Huie for his leadership and tenacity during this investigation,” Brewer said.   

“The U.S. Secret Service is committed to protecting our nation’s financial infrastructure, which includes stopping fraudulent activities like this wire and check fraud,” said Special Agent in Charge James E. Anderson Jr., of the U.S. Secret Service San Diego Field Office.  “The Secret Service San Diego Field Office will continue to investigate individuals who utilize and take advantage of their position in an effort to defraud their employer.”

Barber is scheduled to be sentenced on December 9, 2019 at 9:00 a.m., before Judge Whelan.

DEFENDANT                       Case Number 18-CR-4028-W

Antonia Barber                       Ramona, CA               Age: 51

SUMMARY OF CHARGES

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

Maximum penalty: 20 years’ imprisonment, $250,000 fine (or twice the pecuniary gain or loss), restitution and forfeiture.

AGENCIES

U.S. Secret Service

NEWS RELEASE SUMMARY – August 19, 2019

SAN DIEGO – Today in federal court Sky Justin Gornik, age 39, of San Diego was sentenced by District Court Judge Anthony J. Battaglia to 70 months in prison for  participating in a conspiracy to deliver, distribute and dispense controlled substances through the internet, in violation of Title 21, United States Code, Sections 841(h), 841(b)(1)(A), and 846.  Gornik previously pled guilty to that charge and also admitted that he engaged in a conspiracy to launder drug proceeds using digital currencies, in violation of Title 21, United States Code, Sections 1956(a)(1)(A)(i) and 1956(h).  As part of his guilty plea, Gornik admitted that from 2014 to June 7, 2017 (the date of his arrest by federal authorities), he bought and sold controlled substances on the Dark Web.  Employing anonymous screen names, Gornik used multiple Dark Web marketplaces (including Alpha Bay, Trade Route, Abraxas, Evolution, Outlaw Market, and Dream Market) to buy and sell controlled substances.  Specifically, Gornik admitted that he purchased and sold fentanyl and purchased the especially deadly opiate carfentanil using a variety of digital currencies. Gornik also purchased and sold multiple other controlled substances, including thousands of vials of ketamine, oxycodone pills, Dimethyltryptamine (DMT), Psilocybin and Psilocin, Amphetamine, Buprenorphine, Methamphetamine, and Naloxone.

According to court documents, agents seized 1.7 grams of carfentanil inside Gornik’s residence on June 7, 2017. Carfentanil is a synthetic opioid approximately 10,000 more potent than morphine and 100 times more potent than fentanyl. The 1.722 grams of carfentanil seized in Gornik’s residence could equate to over 86,000 fatal dosages.  Gornik also possessed sheets of fentanyl gelatin tablets (approximately 100 tabs per sheet), which agents seized during the search.  The public record reflects that Gornik obtained 600-1200 fentanyl gel tablets each week for approximately two years from a Dark Web vendor, identified as Steven Wallace George, who resides in Oklahoma.  George, who manufactured pure fentanyl obtained from China into gelatin tablets, was prosecuted by federal authorities in Oklahoma (see Case No. 17-090-R, Western District of Oklahoma). 

As part of his guilty plea, Gornik agreed to forfeit millions of dollars in digital or crypto currency including Bitcoins, Stratis, Ethereum, 2350 Monero, digital currency contained in Gornik’s Bittrex accounts, and digital currency contained in Gornik’s Poloniex accounts.  Gornik admitted that these digital or crypto currency represented drug trafficking proceeds of the offense and were involved in the offense of money laundering over the Dark Web. 

“Dark Web traffickers take note: we will not allow you to lurk in murky corners of the internet, selling and delivering deadly drugs as casually as an Amazon Prime package,” said U.S. Attorney Robert S. Brewer, Jr., who commended AUSA Sherri Hobson and the multi-agency team for “cracking through multiple levels of anonymity mazes to uncover the true nature and extent of Gornik’s drug dealing and money laundering.”

"Battling opioids in the mail is one of the Postal Inspection Service's highest priorities.  By working closely with our law enforcement partners in operations such as this, we can stop drugs and violence from reaching the American public," said Nichole Cooper, Inspector in Charge of the Los Angeles Division.

“Today’s sentencing of Gornik demonstrates the commitment of Homeland Security Investigations (HSI) and our federal partners to bring these criminals to justice,” said Juan Munoz, Acting Special Agent in Charge of HSI in San Diego. “HSI will continue to aggressively pursue those that continue to violate the law and jeopardize the safety of our communities by selling deadly opioids and other dangerous drugs via the Dark Web.”

The investigation was led by U.S. Postal Inspectors in San Diego with the assistance of Special Agents of Homeland Security Investigations.

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.

DEFENDANT                                   Criminal Case No.17CR2796AJB

Sky Justin Gornik                                   Age: 39                     San Diego, California

SUMMARY OF CHARGES

Count 1 (Conspiracy to Deliver, Dispense, and Distribute Controlled Substances By Internet)

Maximum penalty:  10 year minimum mandatory to life, fine of $1,000,000, 5 years of supervised release

Count 2 (Conspiracy To Launder Money)

Maximum penalty:  20 years; fine of $500,000, 3 years of supervised release

Criminal Forfeiture As To Count 1

Forfeiture to the United States of all property, real and personal, that constitutes or is derived from proceeds of the offense, and all property, real and personal, that was used to commit or to facilitate the commission  of the offense.

Criminal Forfeiture As To Count 2

Forfeiture to the United States of all property, real and personal, involved in the offense.

AGENCIES

United States Postal Inspection Service, San Diego

United States Postal Inspection Services, Cyber Unit, Washington D.C.

United States Postal Inspection Service, Oklahoma

Homeland Security Investigations

Internal Revenue Service, Criminal Investigations

San Diego Police Department

San Diego District Attorney’s Office

U.S. Department of Justice, Criminal Division, Money Laundering & Asset Recovery Section

NEWS RELEASE SUMMARY – August 14, 2019

SAN DIEGO – Three defendants were convicted by a federal jury on charges stemming from their efforts to traffic approximately 734 kilograms (1614 pounds) of cocaine -- worth nearly $17 million dollars -- on the high seas. The verdict came yesterday afternoon after a 10-day trial in the United States District Court for the Southern District of California before the Honorable Janis L. Sammartino.  

At trial, the United States proved that on May 24, 2017, a United States Maritime Patrol Aircraft spotted a suspicious vessel alongside multiple packages of suspected floating contraband in the Eastern Pacific Ocean, approximately 364 nautical miles south of Chiapas, Mexico.  The patrol aircraft notified the nearby the United States Coast Guard Cutter WAESCHE, which launched two small boats to intercept the vessel.  The United States Coast Guard found Defendants aboard a vessel approximately 50 yards away from 15 bales of cocaine.  The United States Coast Guard detained the defendants, recovered the cocaine, and transported them to the United States. 

“This verdict is a result of the dedication of our law enforcement partners at the Coast Guard and DEA as well as the excellent trial advocacy of Assistant U.S. Attorneys Francis DiGiacco, Victor Pablo White, and Nicole Bredariol,” said U.S. Attorney Robert S. Brewer, Jr. “Stopping dangerous drugs before they reach our shores is a key priority for the U.S. Attorney’s Office and we will continue to target these maritime smuggling routes to protect the citizens of our district.”

“These smugglers have been brought to justice thanks to the dedication of the cutter Waesche’s officers and crew,” said Rear Adm. Peter W. Gautier, Eleventh Coast Guard District Commander.  “This seizure adds to the thousands of kilograms of deadly narcotics seized at sea every month through the efforts of the Coast Guard, our partner agencies, and partner nations. Together we will continue our determined fight against narcotics trafficking and the criminal networks that threaten our country.”

“We may not have a wall at sea, but we do have an elite group of DEA Agents working from South America, Central America and Mexico to protect the land, sea and air borders in San Diego and Imperial Counties,” said DEA Special Agent in Charge Karen Flowers.  “Utilizing all tools available, DEA merges actionable intelligence with the capabilities of other agencies to unleash the Coast Guard’s fury to stop drugs from getting to the United States.  One Team, One Goal – to keep Americans safe and free from the scourge of illegal drugs.”

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 defendants will be sentenced on November 15, 2019 before the United States District Judge Janis L. Sammartino.

DEFENDANT                                                            Case No.   17-CR-1585-JLS

Jorge Ivan Cobena-Laje (41)                                     

Jose Manuel Murillo-Pivaque (33)

Diomedes Valverde-Magla (65)

CHARGES

Conspiracy to Possess with Intent to Distribute Cocaine on Board a Vessel - 46 U.S.C. §§ 70503 and 70503(b)                                 

Maximum Penalty: Life in prison and $10,000,000 fine

Possession of Cocaine with Intent to Distribute on Board a Vessel

46 U.S.C. § 70503

Maximum Penalty: Life in prison and $10,000,000 fine

AGENCIES

U.S. Coast Guard

Drug Enforcement Administration

Organized Crime and Drug Enforcement Taskforce (OCDETF)

NEWS RELEASE SUMMARY – August 14, 2019

SAN DIEGO – Yesterday, a federal jury found Lance Lamont Lavert, a Utah resident, guilty of robbing the Motel 6 in Carlsbad, California, 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 their verdict after hearing the testimony of 11 witnesses and deliberating for approximately two hours.

“We are working tirelessly with our local and federal law enforcement partners to find and prosecute violent criminals and keep our community safe,” said U.S. Attorney Robert Brewer. “We are gratified to have brought this defendant to justice and some measure of peace to his victims, thanks to the diligent efforts of Assistant U.S. Attorneys Brandon Kimura and Matthew Brehm and our law enforcement partners.”

During trial before Chief 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 then 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 gun point) back to 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.

“This case serves as a great example of the close cooperation that exists between federal and local law enforcement and the U.S. Attorney’s Office, “said Timothy J. Tubbs, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in San Diego.  “HSI will continue working with our regional partners to ensure that violent criminals are brought to justice.”

Lavert’s co-defendant and girlfriend (at the time of the offense) 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: 20 years’ imprisonment 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 imprisonment; 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: 10 years’ imprisonment and $250,000 fine

AGENCY

Carlsbad Police Department

San Diego Sherriff’s Department

Homeland Security Investigations

Customs and Border Protection

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

Assistant U.S. Attorneys Todd Robinson (619) 546-7994 and Kareem Salem (619) 546-8904

NEWS RELEASE SUMMARY – August 5, 2019

SAN DIEGO – Jose Hernandez, aka “Chapo,” a member of the Otay River Bottom Locos gang, was sentenced today 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.

 “This sentence is a big win for public safety,” said U.S. Attorney Robert Brewer. “This defendant, a violent drug trafficker and gang member, will be unable to menace the community for decades to come.” The U.S. attorney praised prosecutors Kareem Salem and Todd Robinson as well as the FBI and members of the Violent Crimes Task force-Gang Group for their hard work.

“This significant 30-year sentence sends a message that the FBI and its partner agencies on the Violent Crimes Task Force-Gang Group will relentlessly pursue gang members involved in violent crime, firearms offenses and drug trafficking,” said FBI SAC Scott Brunner.  “Cases like this one, focusing on dangerous gang members, deter and reduce gang-related violence and drug trafficking in Southern California.  We thank all the federal, state, and local agencies that participated in this long term investigation and are proud to share the success and impactful results with our partners.”

The defendant was convicted by a federal jury on May 21, 2019 (18cr3424-LAB) of 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. He pleaded guilty on May 9, 2019 (18cr4217) to one count of conspiring with others to distribute over 50 grams of methamphetamine.

According to evidence presented at trial, 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 in which Jose Hernandez was the front passenger as they 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

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

Jose Hernandez                               Age: 38                                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.

 

 

Assistant U. S. Attorneys Adam Gordon (619) 546-6720 and Matthew Brehm (619) 546-8983

NEWS RELEASE SUMMARY – August 6, 2019

SAN DIEGO – Omar Mata Guerra pleaded guilty today in federal court, admitting that he robbed the Bank of the West branch in La Mesa in May.

Guerra entered his plea before U.S. Magistrate Judge Linda Lopez. Sentencing is scheduled for October 21, 2019 at 9 a.m. before U.S. District Judge Anthony J. Battaglia.

Guerra admitted in his plea agreement that on May 10, 2019, he entered the Bank of the West branch located at 8690 Center Drive, La Mesa.  He approached the teller and stated, “Listen don’t do anything stupid, I’ve done this before, stay calm, give me money from your top drawer.”  He told the teller to “keep your hands where I can see them, no alarm, no dye packs.”  As the teller began to gather the available money from the drawer, Guerra insisted “hurry up, go faster.” When the money was placed on the counter, Guerra took  approximately $1,152.40 in cash before fleeing the bank.

Guerra was caught after FBI agents issued a Special Bulletin using the video surveillance stills of the robbery.  These video surveillance stills caught Guerra’s distinctive tattoo under his right eye, which led to his subsequent identification and arrest. 

“This bank robber not only took money, he stole the peace of mind of bank employees,” said U.S. Attorney Robert Brewer. “Our law enforcement partners acted swiftly to ensure that this brazen robber was brought to justice and unable to harm others.” Brewer thanked prosecutors Adam Gordon and Matthew Brehm and FBI agents for their hard work on the case.

“The San Diego FBI Violent Crime Task Force works closely with our law enforcement partners to keep our community safe,” said Special Agent in Charge Scott Brunner. “As a result, this bank robber is off the streets and will face justice.”

DEFENDANT                                               Case Number 19CR2001-AJB                                

Omar Mata Guerra                                          Age: 24                       San Diego, CA

SUMMARY OF CHARGES

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

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

AGENCIES

Federal Bureau of Investigation

La Mesa Police Department

San Diego Sherriff’s Department

 

Assistant U. S. Attorney Daniel Silva (619) 546-9713

NEWS RELEASE SUMMARY – August 2, 2019

SAN DIEGO ­­– Global Gold Exchange, LLC and its managers, Jeffrey Morrow and Richard M. Owen, pleaded guilty in federal court today to multiple financial crimes, admitting that they laundered money through their unlicensed money transmitting business by falsely reporting cash transactions as sales of “gold” and other precious metals.

As part of their guilty pleas, the defendants agreed to forfeit approximately $2 million in assets involved in the money laundering and unlicensed money transmitting business.

Special Agents from IRS-Criminal Investigation’s Financial Investigations and Border Crimes Task Force worked with FBI agents and the United States Postal Inspection Service during the multi-year investigation to unravel millions of dollars in suspicious transactions taking place at the San Diego-based office and bank accounts of Global Gold Exchange, or GGEX.  GGEX also pleaded guilty to mail fraud, while Owen also pleaded guilty to unlawful possession of a firearm or ammunition.

As detailed in the plea agreements entered today before U.S. Magistrate Judge Jill L. Burkhardt, GGEX unlawfully laundered cash and funds from a variety of sources – both lawful and unlawful – and fraudulently documented the transactions as “a complete gold transaction.”  In sum, GGEX and its managers admitted operating “as an informal money transfer system engaged in facilitating the transfer of money domestically and internationally outside of the conventional financial institutions system, and did so without regard for the source, destination, purpose, or legality of the funds transmitted.”

Between 2017 and 2018, GGEX and managers Morrow and Owen admitted that they and others employed various money laundering and unlicensed money transmitting techniques to conduct unlawful transactions through GGEX and GGEX’s bank accounts, including:

-Transacting with a “local cartel out of Mexico;”

-Falsifying invoices for sales of gold, when in reality it was the receipt of a large cash deposit, and returned by check after GGEX took a 10 percent fee;

-Agreeing with “clients” to tell law enforcement or tax authorities that the transactions were sales/purchases of precious metals; and

-Advising clients to mail GGEX parcels filled with heavy substances to mimic the weight of gold to falsely document the nature of GGEX’s transactions.

“Global Gold Exchange and its managers attempted to operate as a one-stop-shop for money laundering,” said United States Attorney Robert S. Brewer, Jr.  “The package of guilty pleas entered today makes clear that the United States will pursue and prosecute any individual, asset, or business attempting to launder the proceeds of crimes, or that threaten the integrity of our financial system.”

“Criminal organizations are becoming increasingly dependent on individuals and businesses who offer their expertise and services to assist in laundering illegal proceeds,” said Internal Revenue Service-Criminal Investigation Special Agent in Charge Ryan L. Korner. “Today’s plea should send a clear message to these individuals and businesses that they will be held accountable and face the consequences.”

“Global Gold Exchange and its managers Jeffrey Morrow and Richard M. Owen accepted money from all sources regardless of lawfulness,” said Nichole Cooper, Los Angeles Division Inspector in Charge, United States Postal Inspection Service. “They then subverted conventional financial institution systems by using fraudulent invoices, directing clients to mislead law enforcement, and labeling it ‘a complete gold transaction.’ The result of this plea agreement shows the US Postal Inspection Service and its federal partners bring justice to those who seek to hide their crimes from the law.”

This case is the result of ongoing efforts by the Financial Investigations and Border Crimes Task Force, a partnership targeting unlawful transactions through the financial system. The task force brings together the combined expertise of federal, state, and local law enforcement including IRS-CI, California Franchise Tax Board, United States Postal Inspection Service, and the San Diego Police Department.  FBI and United States Postal Inspection Service partnered with the FIBC in this coordinated investigation. This case is being prosecuted by Assistant U.S. Attorney Daniel Silva.

Sentencing is scheduled to occur on October 16, 2019.  Owen faces a maximum of 20 years in prison.  Morrow faces a maximum of five years in prison.  GGEX faces a maximum of five years probation.  

DEFENDANTS                                            Case Number 19-CR-2936-CAB                                        

Global Gold Exchange, LLC                                     

Richard M. Owen                                           San Diego, CA                        Age: 49

Jeffrey Morrow                                               San Diego, CA                        Age: 44

SUMMARY OF CHARGES*

Money Laundering – Title 18, U.S.C., Section 1956

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

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

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

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

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

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

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

AGENCIES

IRS Criminal Investigations and the Financial Investigations and Border Crimes Task Force

Federal Bureau of Investigation

United States Postal Inspection Service

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

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

NEWS RELEASE SUMMARY – August 1, 2019

San Diego – Amil Hassan Raage pleaded guilty to fraudulently receiving almost $750,000 as part of a spear phishing scheme. (Spear-phishing is when an unwitting victim responds to a bogus email, which the victim believes is from a trusted sender, and reveals confidential information to the fraudsters.)

On July 23, 2018, the University of California San Diego (UCSD) received a spear phishing email from a fraudulent Dell email account instructing UCSD to redirect its payments meant for Dell equipment and services to Raage’s Wells Fargo bank account in Minnesota.  Believing that the email was from a legitimate Dell employee, UCSD followed the instructions and redirected payment.

The email actually originated from one of Raage’s co-conspirators in Kenya. From August 8 through September 12, 2018, UCSD sent Raage 28 payments totaling $749,158.37.  Each time UCSD wired money to Raage’s account, Raage would promptly withdraw the money or transfer it to another account.  When UCSD learned of the fraud, it halted payments.

UCSD was not alone. Raage and his co-conspirators perpetrated a similar scheme on another university, this one in Pennsylvania. Again, a co-conspirator in Kenya used a falsified Dell account to instruct the Pennsylvania university to redirect its Dell payments to a bank account in Minnesota again controlled by Raage. Over the month of January 2018, the Pennsylvania university wired six payments totaling $123,643.77 to Raage’s bank account before the university was alerted to the fraud and stopped payments.

After the bank froze Raage’s accounts, he fled to Kenya on September 22, 2018. Working with Kenyan law enforcement, the FBI’s Legal Attaché in Kenya, and the Department of Justice’s Office of International Affairs, Kenyan police arrested Raage on May 7, 2019, and extradited back to the United States on May 23, 2019, to face prosecution for his involvement in this theft.

“Modern criminals like Raage have ditched the ski mask and getaway vehicle and opted for a computer as their weapon of choice,” said U.S. Attorney Robert Brewer. “As this defendant has learned, we are matching wits with new-age thieves and successfully tracking them down and putting an end to their high-tech deception.”

“As exemplified by this outstanding result, criminals who operate in cyberspace falsely believe themselves to be beyond the reach of law enforcement, but they are sorely mistaken,” said FBI Special Agent-In-Charge Scott Brunner. “Our agents will relentlessly pursue justice, aided by our foreign partners. Thank you to the Kenyan National Police and the Office of International Affairs for their invaluable assistance in bringing Mr. Raage before the bar of justice.”

This type of spear phishing activity has been on the rise, especially for universities, local governments and other entities with procurement paperwork available on-line.

If you or your business or organization have been victimized by an email compromise scam, such as this one, it is important to act quickly. Contact your financial institution immediately and request that they contact the financial institution where the fraudulent transfer was sent. Next, call the FBI at 1-800-CALL-FBI and also file a complaint—regardless of dollar loss—with the FBI’s Internet Crime Complaint Center (IC3).

Raage’s sentencing is set for 8:30 a.m. on October 11, 2019, before U.S. District Judge Gonzalo P. Curiel.

DEFENDANT                                   Case Number: 18CR4858-GPC

Amil Hassan Raage                            Age: 48

SUMMARY OF CHARGE

Conspiracy to Commit Wire Fraud, in violation of Title 18 United States Code, Sections 1349

Maximum Penalty: Twenty years in prison

AGENCIES

Federal Bureau of Investigation, San Diego Division

Kenya Police Service

Director of Public Prosecutions, Kenya

Legal Attaché, U.S. Embassy, Nairobi, Kenya

U.S. Department of Justice, Office of International Affairs

Kelly Thornton (619) 546-9726    

NEWS RELEASE SUMMARY – July 31, 2019

SAN DIEGO – In the wake of four fentanyl overdose deaths in San Diego County in 24 hours last week, U.S. Attorney Robert Brewer issued a public safety alert today for drug users to be aware that a lethal strain of fentanyl designed to look like oxycodone is being sold on the streets to unwitting buyers and the price may be the buyer’s life.

Brewer also warned that the fentanyl crisis is raging here as border seizures, prosecutions and overdoses are on pace to hit all-time highs in San Diego County at the end of 2019.

“That heroin, that meth, that coke, that oxy you think you are taking? Well, it just might have fentanyl in it, and it just might be the last thing you ever do,” Brewer said. “I cannot be more clear than this: Fentanyl may be the costliest drug you ever do, because you may pay with your life, and you won’t even know you took it.”

Fentanyl-related deaths are rapidly climbing to unprecedented levels. The 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.

 “Just when we think it can’t get any worse, the latest numbers prove us wrong,” Brewer said.  “I am alarmed by the dramatic surge in trafficking activity and deaths, particularly of young people. San Diego is the fentanyl gateway to the rest of the country, and we are working hard to close that gate with interdiction, prosecution and education.”

Federal authorities, led by U.S. Customs and Border Protection and Homeland Security Investigations, have confiscated an estimated 533 kilograms – or 1,175 pounds – of illicit fentanyl at and near the international border so far this year. That’s more than half a ton. Just four years ago, authorities seized a fraction of that - only 30 kilograms.  In addition, there has been a record number of seizures involving counterfeit blue pills labeled M-30 that contain fentanyl.

“Your dealer, BFF, lover, or classmate may become your murderer and the medical examiner may become your personal physician,” said DEA Special Agent in Charge Karen Flowers.  “Life is precious. Don’t gamble yours away for a quick high that sends you home from the party in a body bag.”

“Homeland Security Investigations (HSI) is committed to pursuing transnational criminal organizations who continue to profit from smuggling and distributing this deadly opioid that threatens our communities,” said Timothy J. Tubbs, Acting Special Agent in Charge for HSI in San Diego.  “HSI will continue to collaborate with our local, state, federal, and international law enforcement partners to protect our communities from dangerous drugs.”

“Fentanyl is a dangerous synthetic drug that poses a deadly risk for people who encounter this opiate,” said CBP Director of Field Operations in San Diego, Pete Flores.  “CBP officers take special safety precautions when handling such substances and taking them off the street is another example of how CBP protects our communities against all threats.”

The DEA is working in conjunction with local law enforcement agencies in San Diego to ensure the most effective overdose death investigations and prosecutions.  DEA is actively investigating fatal overdose deaths that occur in the San Diego County and has established an Overdose Response Group, which consists law enforcement from DEA, SDPD, Homeland Security Investigations, California Department of Health Care Services and FBI.  The goal of this specialized group is to identify the distributors of these deadly drugs that are bringing heartbreak to our communities.

Fentanyl is 30-50 times more powerful than heroin and so dangerous that in its purest form, even a tiny amount touching the skin 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 both forms are readily available in our community.

Users are also ordering up fentanyl from the so-called “Dark Web” like they would order something from Amazon. The drug is being purchased online and sent directly to customers by mail or express delivery service in the U.S.

Brewer urged users who opt to disregard his dire warning to seek Narcan, a drug that can reverse the effects of opioid overdose and save lives. Narcan is available by prescription and can be purchased at many pharmacies without a prescription.

The law enforcement community has taken this problem very seriously and developed a multi-level strategy that involves a number of approaches from different disciplines.

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 possible murder cases against suppliers. So far, the U.S. Attorney’s Office has charged about a dozen alleged dealers.

In November, U.S. Attorney Brewer, DEA, HIDTA and the San Diego Prescription Drug Abuse Task Force are sponsoring a Western States Opioid Summit that will bring together hundreds of professionals from multiple disciplines to provide training and best practices to combat the fentanyl scourge.  Surgeon General Jerome Adams will address the group.

The U.S. Attorney’s Office and its partners created a local Fentanyl Working Group in early 2017, which meets quarterly.  This is a multi-dimensional group that includes local, state and federal investigative agencies, toxicologists, the Medical Examiner’s Office, DEA Lab Chemists, first responders, plus local, county and federal prosecutors. This collaboration is a significant step in working together to promote streamlined investigations. 

The Fentanyl Working Group also held the sixth Fentanyl Forum on July 18, 2019, where hundreds of  local and federal law enforcement officers learned about the dangers of encountering fentanyl in the field; the local smuggling trends from Mexico and China to the U.S.; parcel interdiction cases, prosecution of overdose cases in state and federal courts; and prosecution collaboration with our office and that of the District Attorney.

The Fentanyl Working Group is also committed to arming the community and first responders with the important information they need to stay safe.

Members of the public who encounter suspicious counterfeit blue pills labeled M-30 are urged to dispose of them safely by referring to resources listed at https://www.sandiegorxabusetaskforce.org/community-resources

People who need help with mental health including substance use disorder, suicide prevention, medication needs, and more can call the San Diego County Crisis line at 888-724-7240. It’s open seven days a week, 24 hours a day.

 

 

 

 

 

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

NEWS RELEASE SUMMARY – July 31, 2019

SAN DIEGO – An Imperial Beach man admitted today to embezzling $117,305 from vulnerable older account holders at the credit union where he worked as a teller. 

Samuel Davalos, Jr. pleaded guilty to one count of bank fraud during a hearing this morning before U.S. Magistrate Judge Barry M. Kurren.

Davalos, 28, was employed as a teller at Point Loma Credit Union (PLCU) from July 2017 to March 2019, according to his plea agreement.  Using his account access, Davalos defrauded PLCU and its members by processing unauthorized withdrawals from members’ accounts, and creating unauthorized checks and other instruments paid to himself and his accomplices.  Davalos admitted in his plea agreement to recruiting three other individuals to assist with his scheme by depositing checks drawn on his victims’ accounts.

Davalos also acknowledged that he selected his victims because of their age and vulnerability, targeting older PLCU members because he believed them less likely to notice the fraud. 

In sum, Davalos stole $117,305 from four different PLCU members over a period of months.  PLCU reimbursed all of the members for their losses.  Davalos has agreed to pay restitution to PLCU for its losses, and to forfeit the contents of two frozen PLCU accounts, which hold a portion of his ill-gotten gains.

“This defendant used his position of trust to exploit elderly victims because he believed they would be easy to fool,” said U.S. Attorney Robert Brewer. “But this office was not fooled. We are dedicated to protecting the community from fraudsters and the defendant will pay a price for taking advantage of these seniors.”

“The Secret Service San Diego Field Office is committed to aggressively investigating financial crimes cases, especially those that target our most vulnerable citizens,” said Special Agent in Charge James E. Anderson Jr. – U.S. Secret Service San Diego Field Office.  “I would like to thank the San Diego Police Department and Customs and Border Protection for their partnership and cooperation in this case.”

Davalos is scheduled to be sentenced on November 12, 2019 at 9:00 a.m., before U.S. District Judge Larry Alan Burns.

DEFENDANT                       Case Number 19-cr-2267-LAB

Samuel Davalos, Jr.                Imperial Beach, CA                Age: 28

SUMMARY OF CHARGES

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

Maximum penalty: Thirty years in prison, $1 million fine (or twice the pecuniary gain or loss), restitution and forfeiture.

AGENCIES

U.S. Secret Service

 Assistant U. S. Attorney Mark W. Pletcher (619) 546-9714

NEWS RELEASE SUMMARY – July 23, 2019

SAN DIEGO – Former U.S. Marine Bradley White pleaded guilty in federal court today to fraud charges, admitting that he participated in a scheme that bilked the military health care program known as TRICARE out of more than $65 million.

White, the sixth of eight defendants to plead guilty in the case so far, admitted as part of his guilty plea that he fraudulently recruited patients in return for a percentage of the amount TRICARE reimbursed for compounded medications that his sham patients ordered.  

White was charged on June 20, 2019, and entered his guilty plea to conspiracy to commit health care fraud before U.S. Magistrate Judge Bernard G. Skomal. Sentencing is set for October 18, 2019 before U.S. District Judge Janis L. Sammartino. 

Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient requires a particular dosage or application or is allergic to a dye or other ingredient.

According to the guilty plea, a team of individuals, including White, worked to recruit and pay Marines, primarily from the San Diego area, and their dependents – all TRICARE beneficiaries – to obtain compounded medications that would be paid for by TRICARE.  This information was sent to Choice MD, the Tennessee medical clinic that employed Drs. Carl Lindblad and Suzy Vergot.  Drs. Lindblad and Vergot then wrote prescriptions for the TRICARE beneficiaries, despite never examining the patients in person. Once signed by the doctors, these prescriptions were not given to the beneficiaries, but sent directly to particular pharmacies controlled by co-conspirators, which filled the prescriptions and billed TRICARE at exorbitant prices. TRICARE then reimbursed the pharmacy, and which in turn paid kickbacks – as a percentage of the TRICARE reimbursement -- to the pyramid scheme of recruiters.

Both Dr. Lindblad and Dr. Vergot as well as Candace Craven, a nurse practitioner at Choice MD, have pleaded guilty for their roles in the conspiracy to commit health care fraud.  CFK, Inc., the corporate owner of one of the pharmacies, has also pleaded guilty as part of this investigation.   

Josh Morgan, another former Marine from San Diego, also pleaded guilty in March 2018 for his role in recruiting TRICARE beneficiaries to fraudulently receive these prescriptions.

According to court documents, between December 2014 and May 9, 2015 – the day that TRICARE stopped reimbursing for compounded medications – Drs. Lindblad and Vergot authorized 4,442 total prescriptions.  Over this time, their co-conspirators billed TRICARE $65,679,512 for these prescriptions. For his part, White admitted that he recruited patients who billed TRICARE over $7.6 million, for which he was paid over $195,000.

White was the eighth defendant charged in relation to this fraud scheme and the sixth to plead guilty. The two remaining defendants are Jimmy and Ashley Collins, owners of Choice MD. That case, 18CR0432-JLS, is still pending.

DEFENDANT                                               Case Number 19-CR-2318-JLS                                          

Bradley White                                                 Age: 31                       Oakley, CA

SUMMARY OF CHARGES

Conspiracy to Commit Health Care Fraud – Title 18, U.S.C § 1349

Maximum penalty: Ten years in prison and $250,000 fine or double loss amount

AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

IRS Criminal Investigation Division, Gulfport, MS

Federal Bureau of Investigation - Jackson, MS Field Office

Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287

NEWS RELEASE SUMMARY – July 22, 2019

SAN DIEGO – A Chula Vista man was sentenced today in federal court to 10 years in prison for distributing fentanyl that led to the non-fatal overdoses of five people in Alpine, some of whom were revived by first responders with Naloxone.

In sentencing Joel Rodriguez of Chula Vista, U.S. District Judge Anthony J. Battaglia said the crimes were “very very serious” and drugs, like fentanyl, are “highly addictive and destructive to the population.”

According to court records, Rodriguez admitted that he obtained fentanyl from Mexico and then delivered it to another person for distribution in San Diego. Rodriguez knew that the substance was fentanyl and reminded his distributors that the substance was dangerous.  Eventually, Rodriguez’s fentanyl led to the accidental overdoses of five individuals in Alpine on or about December 7, 2017.  The individuals, who believed that they were using cocaine, ended up in the hospital. Some were treated at the scene with Naloxone – a drug that reverses the depression of the central nervous system and respiratory system caused by opioids.  During the search of Rodriguez’s residence, agents found several baggies of cocaine and fentanyl, cutting agents, digital scales, and pay-owe sheets documenting drug deliveries and payments.

Rodriguez also admitted that he drove a vehicle containing cocaine on May 17, 2017 from San Diego County to Riverside County to deliver the bulk cocaine to another person for further distribution, months prior to his distribution of fentanyl. 

“Buyer beware!  These people thought they were using cocaine, not deadly fentanyl,” said U.S. Attorney Robert Brewer. “This is a strong sentence for a dealer who came close to pushing his unwitting customers to the point of no return. Dealers are on notice: We have an unyielding commitment to identify fentanyl dealers in our community in order to save lives. And users: Don’t play Russian Roulette with your life.”

Brewer thanked prosecutor Sherri Walker Hobson, the San Diego Sheriff’s deputies and detectives and agents from Homeland Security Investigations and the Drug Enforcement Administration for their work on this investigation which led to Joel Rodriguez’s arrest within days of the non-fatal overdoses. Brewer also thanked the first responders who revived the overdose victims.

“Our thoughts go out to the friends and families of the victims of Mr. Joel Rodriguez’s selfish crimes and greed,” said Juan Munoz, Acting Special Agent in Charge of Homeland Security Investigations in San Diego. “It is impossible to quantify the extent of the harm done by Rodriguez, but holding him accountable will continue to prove that our agents are dedicated to identifying and putting a stop to those engaged in the illegal smuggling of contraband, such as fentanyl.”

“Mr. Rodriguez made the decision to risk the lives of others to make a quick buck,” said DEA Special Agent in Charge Karen Flowers. “Five people almost lost their lives from the drugs provided by Mr. Rodriguez and countless others were impacted by his decision to traffic cocaine.  Now Mr. Rodriguez will pay for his poor decisions by losing his freedom for 10 years during the prime of his life.  His sentence should serve as yet another reminder: If you deal drugs, there will be consequences that will cost you your freedom.”

DEFENDANT                                   Criminal Case No. 18CR0164

Joel Rodriguez                                    30                    Chula Vista, California

SUMMARY OF CHARGES

Count 1:  Possession of Cocaine with Intent to Distribute, in violation of 21 U.S.C. §841

Maximum penalties: Ten-year mandatory minimum to life in prison; $1 million fine

Count 2:  Conspiracy to Distribute Fentanyl, in violation of 21 U.S.C. §841 and 846

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

AGENCIES

San Diego County Sheriff’s Department

Homeland Security Investigations

U.S. Drug Enforcement Administration

San Diego District Attorney’s Office

NEWS RELEASE SUMMARY – July 17, 2019

SAN DIEGO – A man who allegedly threatened to “kill all the gays and children” at the San Diego Pride parade was charged today with three bank robberies after San Diego Police detectives and FBI agents linked him to both the threats and the robberies dating back to 2016.

According to a federal complaint, Andre Lafayette Holmes robbed US Bank on Campo Road in Spring Valley on November 4, 2016; Mission Federal Credit Union in San Diego on June 14, 2018, and California Bank and Trust on Fifth Avenue, also in San Diego, on June 28, 2019. In the first crime he claimed to have a gun; in the second and third robberies he pointed a pistol at tellers, the complaint said.

FBI agents identified Holmes as the armed bank robber in three unsolved cases following threats he made to the San Diego Pride Parade organizers on July 10, 2019. In the first of two late-morning phone calls to pride organizers’ main line, a caller stated: “I think I’m going to have to kill all the gays and the children.” He then repeated, “I’m going to have to kill the f------ and children.” The employee asked, “Sir, what’s your name?” The caller replied: “I don’t like them” and “I hate the f------.” He then hung up. About four minutes later, he called back. “F--- Donald Trump. I hate Hillary. I hate f---. I’m going to shoot up the Pride event.” The male caller repeated the same statement approximately four times.

On July 11, San Diego Police Department investigators identified the phone number as belonging to Holmes. They determined that Holmes drives a 2009 Toyota minivan registered in his name. They located Holmes near Miramar College and conducted a traffic stop. He was in possession of the phone from which the threats were made, the complaint said.

During subsequent searches of Holmes residence and vehicle, investigators discovered evidence of the armed bank robberies, including a gray semi-automatic pistol, a rubber “old man” style mask, a large bag of cash and clothing believed worn by the bank robber, among other things. They also found a Big Gulp 7-Eleven mug consistent with the one used during two of the robberies.

In the first robbery, the complaint alleges that Holmes used a demand note which said: “We have guns! I will personally shoot anyone you alert! Don’t make me jump over the counter and kill innocent people. Big bills only and I’ll calmly leave. Money now!!!!” On the back of the note, it said: “I’m sorry, good man on hard times. Sincerely, Bank Robber.”

In the second robbery at Mission Federal Credit Union, Holmes pulled a semi-automatic pistol from his pocket and pointed it at a teller and demanded money, the complaint said. He then proceeded to demand money from a second teller. In the third robbery, Holmes again had a light-colored semiautomatic pistol and verbally demanded money.

Authorities are presently evaluating further charges for Holmes’ threats to the San Diego Pride Parade.

DEFENDANT                                                Case Number 19mj2977                                          

Andre Lafayette Holmes                                Age: 31                                   San Diego, California

SUMMARY OF CHARGES

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

Maximum penalty: 20 years

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

Maximum penalty: 25 years

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

Maximum penalty: Life in prison;

Consecutive Mandatory Minimum: 7 years

AGENCY

Federal Bureau of Investigation

San Diego Police Department

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

 

Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287

NEWS RELEASE SUMMARY – July 15, 2019

SAN DIEGO – April Spring Kelly admitted in federal court today that she smuggled more than 450,000 fentanyl pills from Mexico into the United States during a nine-month conspiracy from February  to October of 2018. 

According to admissions in her plea agreement, Kelly smuggled the fentanyl pills through ports of entry in San Diego and Nogales, Arizona, for distribution to mid-level distributors in San Diego and Phoenix.

Kelly, a U.S. citizen living in Tijuana, also admitted to smuggling large quantities of fentanyl, methamphetamine and cocaine in her vehicle as she attempted to cross the international border at the San Ysidro Port of Entry on November 30, 2018.  According to court documents, she admitted attempting to smuggle 36.24 pounds of methamphetamine, 37.83 pounds of cocaine, and 11.99 pounds of powdered fentanyl in her vehicle.  She was arrested that day by U.S. Customs and Border Protection officials.

Sentencing is scheduled for October 11, 2019 at 9 a.m. before U.S. District Judge Janis Sammartino.

“San Diego is the gateway for fentanyl to the rest of the country, and we are working aggressively to close that gate, one smuggler and one distributor at a time,” said U.S. Attorney Robert Brewer. “With so many lives at stake, we are pursuing more of these cases than ever.”

Brewer praised federal agents from Homeland Security Investigations, the Drug Enforcement Administration and U.S. Customs and Border Protection, who are on the front lines of this fentanyl surge.  

“Today’s guilty plea is an example of the significant results that can be achieved when law enforcement agencies form a great partnership and work diligently to bring a case to prosecution,” said Juan Munoz, Acting Special Agent in Charge for Homeland Security Investigations (HSI) in San Diego.  “HSI will continue to investigate individuals who bring dangerous drugs such as fentanyl into the U.S. and endanger the families in our communities.  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.”

“Deadly drugs like fentanyl are devastating families throughout San Diego,” said DEA Special Agent in Charge Karen Flowers.  “April Kelly’s guilty plea today is a victory for all San Diegans.  Kelly is only 38 years old and she will pay for her actions of pure greed by spending a very long time – potentially life - in prison.  This should serve as a warning to anyone who traffics drugs:  DEA will investigate and arrest you and the U.S. Attorney’s Office will prosecute you to the fullest extent of the law.”

DEFENDANT                                   Case Number 18cr5463JLS

April Spring Kelly                              Age:    38        San Diego, California

SUMMARY OF CHARGES                                   Case Number

Counts 1, 2 and 3  –  Importation of Methamphetamine, Cocaine, and Fentanyl, in violation of 21 U.S.C. 841 and 846.

Maximum Penalty: Life in prison (10-year minimum mandatory); $10 million fine

Count 4 – Conspiracy to Distribute Fentanyl, in violation of 21 U.S.C. 841 and 846

Maximum Penalty: Life in prison (10-year minimum mandatory); $10,000,000 fine; supervised release; $100 special assessment).

INVESTIGATING AGENCIES

Homeland Security Investigations

Drug Enforcement Administration

Customs and Border Protection

 

Assistant U. S. Attorney John Parmley (619) 546-7957

NEWS RELEASE SUMMARY – July 2, 2019

SAN DIEGO – Austin Thompson of Utah was sentenced in federal court today to 27 months in prison for  carrying out a series of so-called denial-of-service computer hacking attacks against multiple victims between 2013 and 2014. The defendant was also ordered to pay $95,000 in restitution to one of the victims -  Daybreak Games, formerly Sony Online Entertainment.

A denial-of-service (DoS) attack occurs when legitimate users are unable to access information systems, devices, or other network resources due to the actions of a malicious cyber threat actor.  Essentially the hacker floods the targeted host or network with traffic until the target cannot respond or simply crashes, preventing access for legitimate purposes.

According to the plea agreement, between December 2013 and January 2014, Thompson’s attacks, which flooded his victims’ servers with enough internet traffic to take them offline, were directed mainly at online gaming companies and servers, including then San Diego-based Sony Online Entertainment.  Thompson typically used the Twitter account @DerpTrolling to announce that an attack was imminent and then posted “scalps” (screenshots or other photos showing that victims’ servers had been taken down) after the attack.  The attacks took down game servers and related computers around the world, often for hours at a time.  According to the plea agreement, Thompson’s actions caused at least $95,000 in damages.

The defendant, who is free on bond, was ordered to surrender to authorities on August 23 to begin his sentence.

“Denial-of-service attacks cost businesses and individuals millions of dollars annually,” said U.S. Attorney Robert Brewer. “We are committed to prosecuting hackers who intentionally disrupt internet access.” Brewer praised Assistant U.S. Attorney John Parmley and the FBI’s San Diego Field Office for their hard work on this case.

DEFENDANT                                   Case Number  18cr4775JM

Austin Thompson                                Age:    23

SUMMARY OF CHARGES                                                                

Damage to a Protected Computer, 18 U.S.C. § 1030(a)(5)(A)

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

AGENCY

Federal Bureau of Investigation – San Diego Field Office

Assistant U.S. Attorney Nicholas W. Pilchak (619) 546-9709 or Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924

NEWS RELEASE SUMMARY – July 2, 2019

SAN DIEGO – Two residents of Laguna Beach admitted today to perpetrating a complicated scheme to defraud the bankruptcy court using sham transactions, fake people, and lies under oath. 

During a hearing this morning before U.S. Magistrate Judge Barbara L. Major, both Evan P. Dameshek and David Greg Leppo pleaded guilty to Bankruptcy Fraud. 

Dameshek, 57, owned and operated TriPharma LLC, a Laguna Beach company with claims against Imaginetix, Inc.—a company in bankruptcy before U.S. Bankruptcy Judge Margaret Mann.  When Judge Mann directed Imaginetix to pay TriPharma’s former attorney, who held the money based on a fee dispute, Dameshek and Leppo devised a scheme to defraud all of them. Specifically, Dameshek and Leppo admitted in their guilty pleas that they created a fake agreement to make it appear that $3.2 million of TriPharma’s claims were sold to Leppo’s offshore company, Dutch Harbour Financial. 

To make the fake “purchase” seem real, Dameshek and Leppo arranged for Dameshek’s associate  to wire $200,000 to Leppo’s company, which Leppo then used to “purchase” Tripharma’s claim.  Dameshek admitted that he actually returned the “purchase” money to his associate the same day it was received, minus $40,000 that Leppo kept for himself.  

Leppo, also 57, admitted to directing two of his employees to sign agreements on behalf of Dutch Harbour, and using the name “David Greg” instead of his real full name, in order to distance himself from the sham transaction. 

Dameshek admitted that after completing the phony sale, he instructed Leppo to send a letter as “David Greg” to Imaginetix, demanding money on Dutch Harbour’s behalf, in violation of the bankruptcy court’s order. When Imaginetix refused, Dameshek posed as “Dutch Harbour” to contact Imaginetix’s creditors, and made the same demand. 

Based on the fraud, a payment of over $282,000 was made to “Dutch Harbour” before the bogus scheme came to light. Dameshek, however, persisted with the fraud by filing a declaration as “Robert Paige” – a person he invented – falsely claiming that the sham purchase was a real transaction. 

“White collar criminals cannot escape justice by dressing up their lies in complex transactions or overseas shell companies,” said U.S. Attorney Robert Brewer.  “The entire judicial process depends upon witnesses telling the truth.  Our office will hold accountable anyone who tries to defraud the court—whether by simple perjury, or an elaborate scheme like this one.”

“The FBI is dedicated to uncovering all criminal conduct in the cases we investigate,” said Special Agent in Charge Scott Brunner.  “This complicated fraud scheme, which has the effect of degrading the integrity of the bankruptcy system, is another example of the FBI’s determination to ensure no stone goes unturned to reveal the illegal acts of Defendants like Mr. Leppo and Mr. Dameshek.”

Dameshek and Leppo are scheduled to be sentenced on September 16, 2019, before U.S. District Judge Anthony J. Battaglia.

Leppo was also one of 12 individuals indicted in July 2016 for his involvement in Segal’s Lucky Lady Sports Book.  On April 4, 2019, Leppo pleaded guilty to running an illegal gambling business in that matter in case number 16-cr-1695-BEN, which is now set for sentencing on September 16, 2019, before United States District Judge Roger T. Benitez.

DEFENDANTS                     Case Number 19-cr-0903-AJB

Evan P. Dameshek                  Laguna Beach, CA                 Age: 57

David Greg Leppo                  Laguna Beach, CA                 Age: 57

SUMMARY OF CHARGES

Bankruptcy Fraud – Title 18, U.S.C., Section 157

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

DEFENDANT                       Case Number 16-cr-1695-BEN

David Greg Leppo                  Laguna Beach, CA                 Age: 57

SUMMARY OF CHARGES

Illegal Gambling Business – Title 18, U.S.C., Section 1955

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

AGENCY

Federal Bureau of Investigation

NEWS RELEASE SUMMARY – June 28, 2019

San Diego contractor Andrew Otero and his company A&D General Contracting were sentenced today in San Diego federal court by U.S. District Judge John A. Houston. In November, a federal jury convicted A&D and Otero of fraudulently obtaining over $11 million in government contracts which had been set aside for service-disabled veteran-owned small businesses (SDVOSBs). 

Judge Houston sentenced Otero to 18 months in custody and ordered him to pay $400,000 in criminal fines. Judge Houston ordered A&D to pay $1.5 million in criminal fines, and imposed criminal forfeiture of $334,561.    

Earlier this month, A&D and Otero settled civil False Claims Act allegations arising out of the same conduct, agreeing to pay the United States $3,259,679.   Payment of the civil settlement amount will offset the criminal fines imposed by Judge Houston.

The evidence at trial proved that A&D and Otero created a fraudulent joint venture to secure government contract work.  To appear qualified for SDVOSB contracts, Otero and veteran Roger Ramsey initially executed an agreement to create the joint venture, which stated that Ramsey’s company (Action Telecom) would manage the joint venture, employ a project manager for each of the set-aside contracts, and receive the majority of the profits.

However, as proved at trial, Otero and Ramsey signed a secret side agreement that made clear the joint venture was ineligible under the SDVOSB program.  The side agreement proved the parties formed the joint venture so that A&D could simply “use the Disabled Veteran Status of Action Telecom” to bid on contracts.  The side agreement stated that A&D – not Action Telecom – would run the construction jobs, and “A&D will keep 98% of every payment; Action Telecom will receive 2% of every payment.”

In imposing the sentences, Judge Houston emphasized that Otero’s and A&D’s scheme took contracts away from veterans who “bore the weight of war.”  Defendants’ crimes harmed disabled veterans by diverting contracts that should have been awarded to legitimate SDVOSBs, and “snatched” contracts “right out of their hands.”  Judge Houston also stated that the sentences would deter government contractors from similar crimes, and make clear that defrauding the programs was not “worth the gamble.” 

“The United States sets aside important contract work for service-disabled veterans as one small way to recognize their patriotism and repay the enormous debt we owe them for their service,” said United States Attorney Robert S. Brewer, Jr.  “Our office will continue to protect these programs and hold those who abuse them fully accountable.” 

The criminal case was prosecuted by Assistant United States Attorneys Rebecca Kanter and Aaron Arnzen.  The civil case was brought by Assistant United States Attorneys Joseph Price and Doug Keehn.

CORPORATE DEFENDANTS

A&D General Contracting, Inc., Santee, California

INDIVIDUAL DEFENDANTS                                          

Andrew Otero                                            El Cajon, CA

Criminal Case No. 17CR0879-JAH

Civil Case No. 15CV0441-JAH

SUMMARY OF CHARGES

Count 1:                                  Conspiracy to defraud and commit offenses (18 U.S.C. § 371)

Maximum penalties: 5 years’ imprisonment; 3 years’ supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $10

Count 2-4:                               Major fraud against the United States (18 U.S.C. § 1031)

Maximum penalties: 10years’ imprisonment; supervised release; a fine of $1,000,000 per count ($5,000,000 total); and a mandatory special assessment of $100

Counts 5-7:                             Wire fraud (18 U.S.C. § 1343)

Maximum penalties: 20 years’ imprisonment; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $100

Counts: 10, 14:                                    

False statements (18 U.S.C. § 1001)

Maximum penalties: 5 years’ imprisonment; a fine; and a mandatory special assessment of $100

AGENCIES

Department of Veterans Affairs, Office of Inspector General

 

NEWS RELEASE SUMMARY – June 28, 2019

SAN DIEGO – Fedrick Emery of San Diego was sentenced in federal court today to 45 months in custody and 3 years of supervised release for a fraud scheme he began while an active duty member of the U.S. Navy.  According to his plea agreement, Emery and his co-conspirators obtained credit card numbers belonging to real individuals and created counterfeit credit cards and gift cards that Emery then used at over twenty Marine Corps Exchange (“MCX”) locations and Navy Exchange (“NEX”) locations in San Diego and around the country.  Between April 2017 and February 2018, Emery’s fraud resulted in a loss of over $75,000 to the MCX and NEX. 

At the same time, from approximately December 2017 to May 2018, Emery stole the identities of four individuals and used their personal information to obtain car loans, personal loans, and credit cards.  With the stolen information, Emery purchased at least seven luxury automobiles and racked up thousands of dollars in debt that he immediately defaulted on.  In all, Emery’s bank fraud resulted in a loss of over $290,000 to nine different banks.

“The financial toll exacted by identity theft can be crippling, and the emotional trauma can be equally devastating,” said United States Attorney Robert S. Brewer. “These were not victimless crimes.  This office will vigorously prosecute those who cavalierly steal the identities of honest citizens and compromise the integrity our financial institutions.”

“This plea is the result of successful investigative efforts between NCIS and our partner agencies,” said NCIS Southwest Field Office Special Agent in Charge Garrett Waugh. “Fedrick Emery used fraudulent credit cards to defraud U.S. Navy and U.S. Marine Corps Exchanges, and used the identities of numerous unsuspecting victims to obtain bank loans and purchase vehicles. NCIS appreciates the assistance of our partners in combating fraud that decreases Department of the Navy readiness and wastes taxpayer money.”

According to court documents, during the conspiracy Emery and his co-conspirators referred to what they were doing as “New Money.”  Emery flaunted his unearned wealth on Instagram, posting pictures of himself in the luxury automobiles he purchased using the identities of others, and with stacks of cash.  Defendant was discharged in absentia from the U.S. Navy under other than honorable conditions in October 2017. 

DEFENDANT                                                Case Number 18cr3230-JLS                                   

Fedrick Emery                                    Age: 23                                   San Diego, CA

SUMMARY OF CHARGES

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

Maximum penalty: 5 years’ imprisonment and $250,000 fine

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

Penalty – Mandatory two years consecutive imprisonment, and $250,000 fine

AGENCY

Naval Criminal Investigative Service

United States Secret Service

El Cajon Police Department

 

 

 

NEWS RELEASE SUMMARY – June 27, 2019

SAN DIEGO – Michael Enriquez was sentenced in federal court today for lying to the Federal Bureau of Investigation by falsely implicating a federal bankruptcy judge in prostitution, and further obstructing justice by fabricating emails and an electronic telephone contact to corroborate his lies.

U.S. District Judge Cynthia Bashant sentenced Enriquez to 27 months in prison, payment of a $50,000 fine and a $200 special assessment, and three years of supervised release, during which he must perform 250 hours of community service.  In sentencing Enriquez, Judge Bashant noted that his conduct “was a lot more sophisticated than someone who just told a lie” and was the type of obstruction scheme that “threatens the whole judicial system.”

“Attempts to extort a federal judge with malicious lies are a direct attack on the Rule of Law, and today’s sentence reflects that such depraved criminal activity will be punished harshly,” commented Robert S. Brewer, United States Attorney for the Southern District of California. 

Paul D. Delacourt, Assistant Director in Charge of the FBI’s Los Angeles Field Office, said, "Mr. Enriquez provided the FBI with false information about a sitting federal bankruptcy judge but, following a thorough investigation, the FBI determined the judge had not engaged in the alleged activity and that Mr. Enriquez had knowingly lied to the FBI on numerous occasions and obstructed justice.  The FBI will not tolerate those who attempt to undermine our judicial process for their own personal benefit.  In this case, the FBI's fact finding resulted in the exoneration of a wrongly accused judge and the prosecution of Mr. Enriquez."

As detailed in the public record, Enriquez concocted these lies in an effort to assist DB, a litigant/debtor in an involuntary bankruptcy proceeding involving corporate entities connected to filmmaking.  Apparently believing that the presiding bankruptcy judge favored his creditors, on multiple occasions, DB expressed to Enriquez a desire to disqualify the bankruptcy judge from the case.  To help DB turn the tide of the bankruptcy proceeding, Enriquez falsely told DB that he had personal knowledge that the bankruptcy judge had engaged in prostitution. To corroborate this account, Enriquez created fake email records of the bankruptcy judge requesting escort services from an online escort service.  Defendant also input the judge’s name and chamber’s telephone number into his phone contacts in an effort to corroborate that the judge was, in fact, a client of such services.  After creating this bogus paper trail, Enriquez forwarded the emails to DB, knowing that the false accusations and fake emails would likely be used to extort the bankruptcy judge or otherwise influence the bankruptcy proceedings.

In or about early 2013, the relationship between Enriquez and DB soured.  In an effort to seize some advantage from his duplicity, Enriquez identified DB’s creditors in the bankruptcy proceeding and arranged to meet two creditors, DM and PP, in New York City in February 2013.  Unbeknownst to DB, at this meeting, Enriquez told DM and PP that DB had obtained information that the bankruptcy judge had frequented prostitutes, and that DB intended to use that information to influence the outcome of the bankruptcy proceedings.  Enriquez did not tell DM and PP that he was the source of the information, that the information was bogus, or that he had fabricated the corroborating documents.

When PP suggested that he could help DM and PP by relaying his allegations to the FBI, Enriquez negotiated a $100,000 payment, which ultimately never materialized.  Thereafter, on or about April 25, 2013, May 17, 2013, and on multiple occasions until in or about July 2016, defendant knowingly and willfully made material false and fraudulent statements to the FBI falsely implicating the bankruptcy judge in prostitution, and provided the FBI with emails and an electronic telephone contact that he had fabricated to corroborate his story.

A multi-year investigation by the FBI ensued, focusing initially on the allegations of bribery, extortion, and the conduct of the bankruptcy judge.  Eventually, through painstaking effort, agents unearthed the truth:  For no discernible reason at all, through malicious lies and fabricated documents, Enriquez attacked the reputation of a respected federal bankruptcy judge.  U.S. Attorney Brewer commended the FBI agents for rigorously unraveling defendant’s lies and deception, and ultimately vindicating our judicial system.

DEFENDANT                                                Case Number 18CR3575-BAS                                

Michael Enriquez                                           Age: 55           San Antonio, TX

SUMMARY OF CHARGE

False Statements -- Title 18, U.S.C., Sec. 1001

Obstruction of Justice -- Title 18, U.S.C., Sec. 1519

AGENCY

Federal Bureau of Investigation

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

HONOLULU, Hawaii – A federal jury has found former Honolulu Deputy Prosecutor Katherine Kealoha and her husband, former Honolulu Police Chief Louis Kealoha, guilty of abusing their power by conspiring with two police officers to frame her uncle 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 mother.

Following a six-week trial that included testimony of 70 witnesses, the jury deliberated for one day and convicted the Honolulu power couple and police officers Derek Hahn and Minh-Hung “Bobby” Nguyen of conspiracy and three counts of attempted obstruction of an official proceeding. The jury found that the officers helped the Kealohas facilitate the set up and cover up involving the uncle, Gerard Puana.

“The Kealohas’ extraordinary greed inspired astonishing corruption,” said U.S. Attorney Robert Brewer. “The audacity of this couple to use the power vested in them as law enforcement officials to fund a lavish lifestyle and satisfy their personal vendettas was unconscionable. These two were supposed to be the good guys. They were supposed to enforce the law - not break it. Instead, they broke the community’s faith in a monumental way. This city has been harmed by their deception and greed, but the jury has spoken, and it has loudly said NO to corruption. NO to abuse of power. NO to special treatment. NO to injustice.”

“Unfortunately there are no winners in this case,” said FBI Acting Special Agent in Charge Rafael A. Riviere. “The betrayal of trust by the former prosecutor and former Chief of Police will linger for some time. However, justice has been served and the jury, through this verdict, has said that no one is above the law and this behavior will not be tolerated in the State of Hawaii. The FBI would like to thank the United States Attorney Office (USAO) Hawaii, USAO for the Southern District of California, as well as the men and woman of the jury for their swift and decisive verdict.”

During trial, the prosecution relied on current and former police officials, federal agents, victims Gerald and Florence Puana, experts, city and county officials, defense attorneys, and Puana family members, among others, as witnesses to prove the story of corruption, abuse of power, greed and manipulation.

The financial entanglement with the uncle started back in 2007, when Katherine Kealoha told her uncle she would safeguard and invest his substantial savings in an her alleged hui.  To give the false appearance of investment returns, she periodically withdrew cash from the bank account holding the uncle’s money and paid the money as a “return” on his investment.  Despite his requests, Katherine Kealoha never returned over $70,000 of his investment principal.

In 2009, another financial opportunity arose and Katherine Kealoha seized the moment to insert herself by advising her grandmother, Florence Puana, on how to help her son (the same uncle who had invested money with Katherine Kealoha) purchase a condominium despite his lack of credit.  Katherine Kealoha’s solution was a convoluted five-step process:  (1) the grandmother would obtain a reverse mortgage; (2) Katherine Kealoha would use the proceeds to buy the condo outright; (3) the Kealohas would use the remaining funds to “consolidate” their debts (thereby allowing them to improve their credit); (4) the Kealohas would obtain a mortgage on the condo and the uncle would make mortgage payments to them; and (5) the Kealohas would repay the reverse mortgage within three to six months.

The grandmother agreed to Katherine Kealoha’s plan, and obtained a reverse mortgage totaling more than $513,000. A portion of the funds was used to purchase a condo; the remainder, approximately $153,000, was supposed to be used to consolidate the Kealohas debts in order for the Kealohas’ to obtain a mortgage on the condo. However, Katherine Kealoha kept none of her promises.  Instead, she spent the entire amount within six months for her and her husband’s lavish lifestyle.  Katherine never obtained a mortgage on the condo; however, she collected mortgage payments from her uncle and again pocketed most of his money.  Lastly, she did not repay the reverse mortgage which continued to substantially increase and diminish the equity in grandmother’s family home.  The grandmother and uncle’s discovery of this skyrocketing loan balance led to a confrontation with the Katherine Kealoha, and their subsequent civil lawsuit.  This dispute motivated the Kealohas to frame the uncle for the mailbox theft, have the grandmother declared incompetent, and discredit both the uncle and grandmother in the civil case.

The Kealohas used the grandmother’s stolen money to pay a variety of personal expenses, including their mortgage and tens of thousands of dollars in bank loans; car payments for a Mercedes and a Maserati; Elton John concert tickets; travel expenses, restaurant meals and a trip to Disneyland; donations to charity; and a $23,000 brunch tab at the Sheraton Waikiki to celebrate Louis Kealoha’s induction as Honolulu Police Chief in 2009.

The uncle and grandmother suspected they had been duped and began to voice their concerns and seek legal remedies by filing a civil lawsuit, accusing the Kealohas of stealing their money. The Kealohas sought to discredit the Puanas and orchestrated an elaborate cover up that involved falsely portraying the uncle as a drug-addicted criminal, and the grandmother as an incompetent senior who needed a financial guardian. To protect their public images and conceal their greed, the Kealohas and two police officers from the elite Criminal Intelligence Unit framed the uncle for stealing the Kealohas’ mailbox, supposedly to obtain bank statements from a joint account held by Katherine Kealoha and her grandmother - statements that were relevant to the civil lawsuit.  The alleged theft sparked a police investigation and federal prosecution that resulted in a mistrial against the uncle.  The idea was to discredit the uncle by giving him a felony conviction so that the civil jury would never believe his testimony. 

The mistrial in the uncle’s federal case resulted in an FBI investigation into the civil rights violations of the uncle.  During the FBI investigation, the Kealohas and the two police officers continued to engage in a conspiracy to obstruct the FBI and the federal grand jury seeking to uncover the truth behind this set up and cover up.  This led to their indictment in October 2017. 

Today, the jury found that the Kealohas used their considerable power plus members of the police department’s elite Criminal Intelligence Unit to frame him for that bogus theft of their mailbox on June 21, 2013.  The evidence demonstrated that the defendants staged the “theft,” then selectively edited the grainy surveillance video to conceal their preparation of the mailbox for the taking, falsely identified Gerard Puana as the culprit captured by the video, falsified police reports, withheld or failed to investigate critical evidence, and lied to federal investigators and prosecutors to frame the uncle. The defendants were also involved in the destruction of surveillance footage contained on hard drives from the case by recording over it with six days of a ceiling and office space at police headquarters.  At one point, the Kealohas assigned approximately 30 Honolulu police officers to conduct 24-hour surveillance on Gerard Puana.

But according to key evidence presented by the prosecution, the Puanas had no motive to steal a mailbox to obtain bank statements. The evidence showed they had already obtained the bank statements in question in February of 2013 – four months prior to the mailbox theft on June 21, 2013. Katherine Kealoha knew that she had closed that joint bank account on January 24, 2013, and the last statement was mailed to Katherine’s post office box in Kahala in February 2013 – not to her residence where the mailbox was stolen.

“As we’ve often seen, the cover up was worse than the original crime,” U.S. Attorney Brewer said. “The most troubling aspect of this case was the way these powerful defendants manipulated the justice system for their own purposes.”

An indignant Katherine Kealoha responded to the accusations of her financial fraud in a letter to her grandmother that prosecutors presented to the jury as a roadmap to her motives:

I WILL seek the highest form of legal retribution against ANYONE and EVERYONE who has written or verbally uttered those LIES about me! They will rue the day that they decided to state these TWISTED LIES!

The jury found that Katherine Kealoha made good on that promise.

Chief U.S. District Judge J. Michael Seabright of the District of Hawaii, who presided over the trial, set sentencing for Katherine Kealoha on October 7, 2019 at 1:30 p.m.; Louis Kealoha on October 15, 2019 at 2:15 p.m.; Derek Hahn on October 21, 2013 at 1:30 p.m.; and Minh-Hung “Bobby” Nguyen on October 28, 2019 at 1:30 p.m.

During the hearing, the prosecution moved to remand Katherine Kealoha.  The judge scheduled a detention hearing for June 28, 2019 at 10 a.m.  The other defendants were allowed to remain free until sentencing.

The Kealohas are facing a second trial on October 21, 2019 on charges of bank fraud, aggravated identity theft, and obstruction of justice in connection with the alleged theft of a $167,000 inheritance of two children for whom Katherine Kealoha served as financial guardian. Katherine Kealoha also faces charges related to allegations that she and her brother, Rudolph Puana, trafficked in opioids and that Kealoha used her position as a Deputy Prosecutor to hide it.

U.S. Attorney Brewer praised prosecutors Michael Wheat, Joseph Orabona, Colin McDonald, Janaki Gandhi, former prosecutor Eric Beste and FBI agents in Honolulu for their excellent work on this case.

DEFENDANTS                                Case Number 17cr0582-JMS                                  

Katherine P. Kealoha                          Age: 48                       Honolulu, Hawaii

Louis M. Kealoha                               Age: 58                       Honolulu, Hawaii

Derek Wayne Hahn                            Age: 47                       Honolulu, HI

Minh-Hung “Bobby” Nguyen            Age: 45                       Kaneohe, Hawaii                   

SUMMARY OF CHARGES

Count 1

Conspiracy to Commit Offenses Against the United States – Title 18, U.S.C., Section 371

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

Guilty – Katherine P. Kealoha, Louis M. Kealoha, Derek Wayne Hahn, Minh-Hung “Bobby” Nguyen

Counts 2, 6 and 8

Obstruction of Official Proceeding – Title 18, U.S.C., Section 1512 (c)

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

Guilty – Katherine P. Kealoha (Counts 2, 6, 8); Louis M. Kealoha (Counts 2, 6, 8); Derek Wayne Hahn (Counts 2, 6, 8); Minh-Hung “Bobby” Nguyen (Counts 2, 6, 8)

AGENCY

Federal Bureau of Investigation

Honolulu, Portland, and San Diego Divisions

 

NEWS RELEASE SUMMARY – June 25, 2019

The U.S. Attorney’s Office for the Southern District of California and the U.S. Department of Justice (DOJ) Civil Rights Division hosted a roundtable today for community organizations, U.S. Attorney Robert S. Brewer, Jr. announced.  The event included local law enforcement agencies, legal aid offices, fair housing organizations, and community groups that work with individuals who use transitional housing. Each organization invited has regular contact with Southern California’s most vulnerable populations, who could also become victims of sexual harassment in housing.

“Sexual harassment in housing can be even more egregious than harassment in the workplace,” U.S. Attorney Brewer said. “Landlords and property managers cannot be permitted to use their power over housing as a weapon to extort sexual favors from tenants. We’re extremely proud to be holding a meaningful discussion with community partners about how to combat this serious problem.”

While most people are familiar with the problem of sexual harassment in the workplace, harassment also occurs in the housing context, and the Fair Housing Act prohibits it. Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often affects the most vulnerable populations - single mothers, women who are financially unstable, and women who have suffered sexual violence in their past. And these women often do not know where to turn for help.

The U.S. Attorney’s Office is working closely with the DOJ Civil Rights Division to ensure people are aware of options to help victims experiencing sexual harassment or who experienced sexual harassment in housing in the past. Often it is community organizations, such as local law enforcement, legal aid offices, fair housing organizations, shelters and transitional housing providers, that are in the best position to identify housing abuses and recommend that victims report sexual harassment to DOJ’s Civil Rights Division. By increasing awareness and building strong partnerships, we can better combat this problem in our community.

Each year DOJ brings cases involving egregious conduct, including allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures.  The case filed against San Diego landlord Larry Nelson earlier this month is illustrative. The lawsuit, filed in the U.S. District Court for the Southern District of California, alleges that Nelson engaged in sexual harassment and retaliation of female tenants from at least 2005 to the present, by, among other things, engaging in unwelcome sexual touching, offering to reduce monthly rental payments in exchange for sex, making unwelcome sexual comments and advances, making intrusive and unannounced visits to female tenants’ homes to further his sexual advances, and evicting or threatening to evict female tenants who objected or refused his sexual advances.

The roundtable is an integral part of a DOJ initiative that seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts - both among victims and those they may report to - and collaborate with federal, state, and local partners to increase reporting and help women quickly and easily connect with federal resources. DOJ encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing: fairhousing@usdoj.gov.

Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.

 

NEWS RELEASE SUMMARY – June 25, 2019

SAN DIEGO – Maxwell Joseph Gaffney, aged 25, of Ramona, California, was convicted by a federal jury late yesterday of distributing the heroin that resulted in the death of Kyle J. Rodriguez, who was 23 years old when he overdosed.   The verdict, delivered after two hours of jury deliberations, followed a week-long trial before U.S. District Judge Michael M. Anello.  

            Evidence at trial revealed that on February 17, 2017, after months of sobriety confirmed by regular random drug screenings,  Rodriguez was found by his girlfriend collapsed in the bathroom of his parents’ Ramona home, surrounded by burned aluminum foil, a plastic straw and lighter.  These were familiar signs of Rodriguez’s former life wrestling with substance use disorder.  But in February 2017, Rodriguez had made positive inroads: he had a full-time job in construction, a girlfriend he was considering marrying, and a rekindled relationship with his father that was formerly splintered by his prior heroin use. When he was found, Rodriguez’s mother, a former cardiac nurse, immediately performed CPR to resuscitate her son.  Her efforts and the subsequent efforts of paramedics failed.  At 3:03 a.m. that morning, Kyle Rodriguez was gone.

            Authorities charged Gaffney after an investigation revealed text messages that established the following: Gaffney had supplied heroin to Rodriguez hours before his collapse; Gaffney had directed Rodriguez to put the money for the heroin into Gaffney’s mailbox; and Rodriguez’s blood contained heroin metabolites at the time of his death.  At trial, the defense contended that Rodriguez had another source of heroin supply and that the heroin in Rodriguez’s blood was not the heroin supplied by Gaffney.  Further, the defense contended that Rodriguez’s alcohol consumption prior to and during the concert he attended the evening of his death, which resulted in a blood alcohol level of .12, and a combination of other factors, including but not limited to heroin, caused his death. 

            Both the San Diego Deputy Medical Examiner, Dr. Abubakr Marzouk, and a Board Certified Medical Toxicologist/Emergency Medicine doctor testified for the United States that the actual cause of Rodriguez’s death was the heroin and that, but for his use of heroin, Rodriguez would not have died.  In explaining the difference between the impact of the heroin and the alcohol consumed by Rodriguez, the United States’s expert likened the heroin to a “shotgun blast to the heart” and the alcohol to a “pin-prick.”  As to the source of the heroin, the email exchange between Gaffney and Rodriguez showed that Gaffney supplied Rodriguez with approximately a half of a gram plus “a little extra B” -- black tar heroin.  Neither a search of Rodriguez’s cellular telephone nor other evidence introduced at trial revealed any another consummated heroin transaction by Rodriguez with any other supplier near the time of Rodriguez’s death.   

            “The U.S. Attorney’s Office will zealously work to hold dealers accountable for overdose deaths that result from their actions,” said U.S. Attorney Robert S. Brewer, Jr. “These purveyors of poisons are killing our citizens and tearing apart the fabric of our families.  We must continue to combat the opioid crisis by every possible means at our disposal.”   

“The results in this case are a testament to the collaborative efforts of the San Diego County Sheriff's Department and the U.S. Attorney’s Office,” said Lt. Ken Jones of the Sheriff's Ramona Substation.  “This is a significant victory as we partner to fight the opioid crisis in our community."

            Gaffney is set to be sentenced on September 23, 2019 before Judge Anello.  This case was handled in court by Assistant United States Attorneys Timothy Coughlin and Larry Casper.

DEFENDANT                                    Case Number 17-cr-3330-MMA                                                    

Maxwell Joseph Gaffney                    Age: 25                       Ramona, California

SUMMARY OF CHARGE TO WHICH GUILTY PLEA ENTERED

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

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

INVESTIGATING AGENCIES

San Diego Sheriff’s Department

San Diego Sheriff’s Department Regional Crime Lab

San Diego Medical Examiner’s Office

San Diego District Attorney’s Office

United States Attorney’s Office

Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287

NEWS RELEASE SUMMARY – June 20, 2019

SAN DIEGO – Marcell Travon Robinson III of Riverside admitted in federal court today that he distributed thousands of fentanyl pills during a three-year period to multiple drug dealers in Southern California.

Robinson pleaded guilty to conspiracy to distribute fentanyl and possession of fentanyl with intent to distribute. He faces a 10-year minimum mandatory sentence to life in custody. He also agreed to forfeit $148,334 in cash and several firearms that were seized during the operation.

According to court records, Robinson was arrested by Naval Criminal Investigative Service agents in October 2018, following their investigation of fentanyl distributors. Homeland Security Investigation Special Agents worked with NCIS during the operation.

His sentencing is scheduled for August 23, 2019 at 8:30 a.m. before U.S. District Judge Gonzalo Curiel.

“This is a very serious warning to dealers and users: You are gambling with your lives,” said U.S. Attorney Robert Brewer. “To dealers, my office is very aggressively pursuing fentanyl distributors. To users, the drugs you are taking probably are not what you think. They are likely to be laced with deadly fentanyl, and may be the last thing you ever do. Don’t make this costly mistake.”

“This plea comes on the heels of a critical seizure of fentanyl-laced pills sometimes being sold to users who presumed they were legitimate pills of oxycodone. Having this individual off the streets and away from being able to distribute these fatal drugs was a joint effort. The NCIS Southwest Field Office appreciates the assistance of our partners at HSI and CBP Air Division during the execution of multiple operations during the course of the investigation.”

DEFENDANT                                   Case Number 18cr5114       

Marcell Travon Robinson III             Age: 31           Riverside, California

SUMMARY OF CHARGES                                   Case Number

Count 1 – Conspiracy to Distribute Fentanyl, in violation of 21 U.S.C. 841 and 846

Maximum Penalty: Life in custody (Ten year minimum mandatory); $10 million fine

Counts 2 and 3 - Possession of Fentanyl with Intent to Distribute, in violation of 21 U.S.C. 841

 Maximum Penalty:  life in custody (Ten year minimum mandatory); $10,000,000 fine; supervised release; $100 special assessment).

INVESTIGATING AGENCIES

Naval Criminal Investigative Service

Homeland Security Investigations

 

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

NEWS RELEASE SUMMARY – June 18, 2019

SAN DIEGO – Manuel Reynoso Garcia of Tijuana pleaded guilty in federal court today, admitting that he led an international money laundering organization that moved more than $19 million in cash from the United States to bank accounts controlled by shell companies in Mexico.

The FBI’s multi-year investigation targeted Reynoso as one of the key leaders of the Tijuana- and San Diego-based money laundering organization. Reynoso, the last of eight defendants to plead guilty in the case, admitted laundering drug trafficking proceeds on behalf of Mexican-based organizations, including the Sinaloa Cartel, through unlicensed money transmitting businesses. As a result of this case, the organization has been dismantled.

Between 2014 and 2017, the defendant admitted that the conspiracy employed various sophisticated money laundering techniques with the goals of distancing his organization, and the criminal organizations he worked for, from the transactions.  Through the use of funnel accounts, bulk cash deposits by paid third-parties, unlicensed money transmitting businesses, shell companies, and various layers of transactions that provided no legitimate business purpose, nor provided any commercial value, Reynoso was able to turn cash located in various U.S. cities into funds in Mexican financial institutions – all for a fee.

The money laundering organization recruited individuals to serve as “funnel account holders” – that is, nominee accountholders in Southern California, primarily in San Diego.  Other members of the organization based in Southern California and Northern Mexico, known as “couriers,” travelled to cities throughout the United States to provide a cash pick up and transport service for bulk cash proceeds of unlawful activity in amounts that ranged between $150,000 and $600,000. Once in possession of the money, the couriers deposited the money in smaller increments into the nominees’ funnel accounts, and eventually transferred the funds to shell corporations managed by the organization at Mexican financial institutions. Once in Mexico, the funds ultimately made their way to representatives of the Sinaloa Cartel and other criminal organizations. 

“We are making it as difficult as possible for drug traffickers to finance and profit from their crimes,” said U.S. Attorney Robert Brewer. “This investigation has made sure that the Sinaloa Cartel and others like it have one less way to wash their dirty money.”

“With this final conviction, Reynoso’s money laundering organization has been dismantled,” said FBI Special Agent in Charge Scott Brunner.  “Shutting down illegal cash proceeds returning to the drug cartels is like stopping the blood flow to the heart of these major criminal enterprises.  The FBI will continue to strike at the heart of dangerous drug trafficking organizations in order to keep our communities safe.”

“Money launderers seeking to introduce illegally-generated funds into the United States financial system through bulk cash deposits, couriers, and funnel accounts will not be tolerated by the federal government,” stated Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation.  “The IRS is proud to share its hallmark financial investigative expertise in this and other increasingly sophisticated financial investigations.”

Sentencing is scheduled for September 16, 2019, before U.S. District Judge William Q. Hayes.

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: 63                       Tijuana, Mexico

SUMMARY OF CHARGES*

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

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

AGENCIES

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

IRS Criminal Investigations

Assistant U. S. Attorney Brandon Kimura (619) 546-9614    

NEWS RELEASE SUMMARY – June 17, 2019

SAN DIEGO –   Obediah Breer, Escondido resident and member of the Hell’s Angels motorcycle gang, was sentenced yesterday in federal court to 12 years in prison for distributing methamphetamine.

The charges stemmed from two incidents in August and September of 2018 outlined in his January plea agreement. Breer was arrested on state charges on August 15, 2018, when the Oceanside Police Department’s SWAT team executed a search warrant on his Escondido residence and discovered cocaine, methamphetamine, pharmaceutical pills and a firearm.    

The warrant was based on an incident in which Breer was alleged to have brandished a firearm during a traffic encounter with other motorists on August 5, 2018, and then evaded police officers in a subsequent chase.

According to a federal complaint, during the search of his home Breer acknowledged evading officers in the August 5 traffic incident. He  also admitted that he possessed the .22 caliber firearm, and that he is a member  of the Hell’s Angels motorcycle gang. He was arrested.

The second incident occurred on September 11, 2018, when Breer was out of custody on pretrial release for the August 15 offense. Escondido Police Department officers conducted a traffic stop of Breer on his motorcycle and discovered that he was in possession of methamphetamine and cocaine.

State and federal prosecutors agreed at that point the case should be prosecuted federally.

In all, the substances possessed by the defendant on August 15 and later on September 11, included 68.23 grams of fentanyl, 83.99 grams of cocaine, 108.6 grams of methamphetamine and 3.54 grams of MDMA, a Schedule I and II Controlled Substances, according to the federal plea agreement.

“This is a great example of working as a team to protect our community,” said U.S. Attorney Robert Brewer. “This motorcycle gang member has a long history of methamphetamine trafficking offenses. We are glad he will be off the streets for a long time. I am proud of our prosecutor, Brandon Kimura, and our law enforcement partners, for their hard work on this case.”

“ATF recognizes the role firearms play in violent crimes and narcotic trafficking,” said ATF Los Angeles Field Division Special Agent in Charge Carlos A. Canino. “We prioritize our resources to focus on armed violent offenders, career criminals, and violent gang members and use the enhanced sentencing guidelines for these offenders. The sentencing is an example of ATF, state and local law enforcement, and federal prosecutors working together to keep our communities safe.”

“We are extremely pleased with the outcome of this case.  Through the collaborative investigative efforts of federal and local law enforcement, the menace Obediah Breer poses to our communities has been eliminated for years.  We are grateful that the citizens of Oceanside and Escondido will be safer knowing the Hell’s Angel motorcycle gang’s capabilities and influence have been significantly impacted by Breer’s conviction.”  -- Chief Craig Carter, Escondido Police Department.

DEFENDANTS                                            18-cr-04624-LAB                                         

Obediah Breer                                     Age: 42                                   Escondido,  CA

SUMMARY OF CHARGES

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

Maximum Penalty – Twenty years in prison, $1 million fine

AGENCY

Bureau of Alcohol, Tobacco, Firearms and Explosives

Oceanside Police Department

Escondido Police Department

*This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions 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.

Assistant U. S. Attorney Sherri Walker Hobson (619) 961-0287

NEWS RELEASE SUMMARY – June 14, 2019

SAN DIEGO –  Willian Estuardo Lemus Lara, a suspected high-level cartel boss from Central America, was arraigned in federal court today on maritime cocaine trafficking charges.

According to the documents filed in court, Lemus was the manager of the transportation and distribution cell responsible for facilitating multi-ton quantity cocaine loads via go-fast vessels on the high seas originating from Colombia and Ecuador to Costa Rica and Guatemala. The United States alleged that he sold his cocaine loads to Mexican drug trafficking organizations for transportation to the United States.

The United States further alleged that Lemus was involved in a two-year conspiracy and that he directed the movement of large quantities of cocaine in go-fast vessels across international waters, including facilitating refueling vessels on the high seas during their journey north.

Lemus was indicted by a federal grand jury on January 18, 2018. He was charged with conspiracy to possess with intent to distribute cocaine on board a vessel, and international conspiracy to distribute cocaine. U.S. Magistrate Judge Andy Schopler ordered the defendant detained without bond. Lemus’ next hearing is scheduled for July 19, 2019, before U.S. District Judge  Dana M. Sabraw.

 “Federal law enforcement officials worked together in three countries to successfully disrupt a dangerous drug trafficking ring that sought to smuggle thousands of kilograms of cocaine into the United States,” said U.S. Attorney Robert Brewer. “Through effective partnerships and outstanding investigation, we intercepted significant loads of this highly addictive stimulant, stripped traffickers of drug profits, and helped to safeguard our communities.”

“I commend the government of Guatemala and all of our foreign and domestic law enforcement partners for their hard work.  Their support was instrumental in our joint effort to dismantle this international criminal organization's ability to bring dangerous drugs into our communities and ensure the perpetrators of such attempts are brought to justice,” said David Shaw, special agent in charge for HSI San Diego. “These type of aggressive and coordinated law enforcement efforts are critical to removing the threat posed by criminals flooding American communities with dangerous narcotics, and we will continue to work with our U.S. and international law enforcement partners to bring transnational criminal organizations to justice.”

“DEA protects our communities by hunting down the head of the snake and bringing them to a U.S. courtroom to face U.S. justice,” said DEA Special Agent in Charge Karen Flowers. “The apprehension of a suspected cartel leader highlights what we do best: Leverage all tools across U.S. law enforcement, our foreign counterparts, and work as one to take out anyone, anywhere who profits from the human misery of addiction.”

“This significant case demonstrates what we can accomplish together with intelligence, diligence and commitment to excellence,” said Pete Flores, director of field operations for San Diego.  “I commend the CBP task force officer and our partners at HSI, DEA, and the U.S. Attorney’s Office who collaborated to identify, investigate, to bring this man to justice and disrupt this transnational criminal organization.”

During the investigation, federal agents seized approximately 5,900 kilograms, or 13,000 pounds, of cocaine.

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.

DEFENDANT                                                Case Number 18CR0390DMS                   

Willian Estraduo Lemus-Lara                         Age: 49           Guatemala

SUMMARY OF CHARGES

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

Maximum penalty: Life in prison, 10-year minimum mandatory; $1 million fine

Count 2 - International Conspiracy to Distribute Controlled Substances

Maximum penalty: Life in prison, 10-year minimum mandatory; $1million fine

INVESTIGATING AGENCIES

Homeland Security Investigations (HSI)

Drug Enforcement Administration (DEA)

Customs and Border Protection (CBP)

U.S. Coast Guard

HSI Joint Task Force Investigations (JTF-I)

HSI Attaché Guatemala City, Guatemala

HSI  Attaché Mexico City Mexico

Joint Interagency Task Force-South (JIATF-S)

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

 

Kelly Thornton (619) 546-9726

CLICK HERE for Plea Agreement

NEWS RELEASE SUMMARY – June 13, 2019

SAN DIEGO – Margaret E. Hunter admitted in federal court today that she and her husband, U.S. Rep. Duncan D. Hunter, knowingly and willfully used campaign funds as their personal bank account for years, spending lavishly on things they could not otherwise afford, such as expensive trips to Italy, Las Vegas, Laguna Beach, Disneyland and elsewhere, plus golf outings, a bachelor party, private school for their children, dinners in Del Mar and Coronado, and even plane tickets for their family pet, Eggburt the rabbit.

Margaret Hunter’s plea agreement indicates that she has agreed to provide “substantial assistance to the United States in the investigation and prosecution of others” and to “tell everything (she) knows about every person involved” in the crime.

U.S. District Judge Thomas J. Whelan set Ms. Hunter’s sentencing for September 16, 2019 at 9 a.m.  The Hunters both remain free on bond.  A motions hearing relating to defendant Duncan Hunter is scheduled for July 1, 2019, and his trial is scheduled to begin on September 10, 2019.

As detailed in her plea agreement, beginning no later than 2010 and continuing up to and including at least 2016, Margaret and Duncan Hunter agreed to knowingly use campaign funds for their own personal benefit and enjoyment, and for that of friends and family.  Throughout this period, the Hunters both recognized that many of their personal outings with family or friends (including trips to Del Mar, dinners or drinks with friends, family and “couples” vacations, golf outings, and a bachelor’s party) should not have been paid for with campaign funds. Nevertheless, Ms. Hunter admitted that the Hunters continued to improperly use campaign funds on these and many other occasions.

Among the improper expenses, Margaret Hunter acknowledged that the Hunters improperly spent $2,448.27 in campaign funds in August 2011 on a personal “couples” Las Vegas vacation in Las Vegas, Nevada, and concealed the personal expenditures 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. They once again falsely told the campaign treasurer that all the charges were “campaign related.”

Ms. Hunter acknowledged in her plea agreement that these types of improper expenses went on for years and included: (1) the Hunters’ improper use of $371.51 in campaign funds on September 2, 2012 at the Loew’s Resort in Coronado for a family lunch in connection with their child’s Irish Dance competition; (2) the Hunters’ improper use of $100.69 in campaign funds on November 16, 2013 at Casa De Pico in La Mesa to take their family and close friends out to dinner before attending a sporting event featuring one of the Hunters’ children; (3) the Hunters’ improper use of $1,489 in campaign funds 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; (4) the Hunters’ improper use of campaign funds on September 26, 2015 for a family trip to Disneyland, in which Ms. Hunter used Duncan D. Hunter’s campaign card to spend $229.44 in campaign funds at Disneyland’s Star Trader shop for gifts for the Hunters’ children, including two Minnie Mouse ear headbands, a Star Wars droid knit beanie, and a raglan-sleeve black-and-gray Star Wars girls T-shirt; and (5) the Hunters’ improper use of $669.07 in campaign funds 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, Ms. Hunter also admitted improperly using campaign funds on a number of family vacations, including: (1) 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 ziplining for Hunter and two of his children, and $250 in airline travel charges for the family’s pet rabbit, Eggburt); (2) 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; (3) a June/July 2015 family vacation involving Hunter’s cousin’s wedding in Boise, Idaho, and a stopover in Las Vegas on the way there in which the Hunters, among other things, spent $205.62 in campaign funds for personal items at the North Face store, which included a new pair of sunglasses for Duncan Hunter and a T-shirt; and (4) a November 2015 family vacation to Italy, in which the Hunters improperly used more than $10,000 in campaign funds, and attempted to justify the impermissible use of these funds by setting up a one-day tour of a U.S. Navy facility in Italy.

Margaret Hunter also admitted communicating with Hunter and with the campaign treasurer about the fact that it was only appropriate to pay expenses with campaign funds when an outing or event was for a bona fide campaign or political purpose. Nevertheless, Ms. Hunter admitted that she and her husband both knowingly violated these restrictions and other rules the treasurer implemented to track legitimate expenses (such as instructing the Hunters not to purchase gas using campaign funds, instructing the Hunters that withdrawing cash from ATMs and using “petty cash” required records of how money was spent, and requiring receipts which listed the names of donors and volunteers with whom the Hunters claimed to be spending campaign funds). 

Ms. Hunter also acknowledged that she and Duncan Hunter both were aware that the other spent, and could spend, campaign funds on personal activities and purchases without having to inform one another about the nature of specific “campaign” expenses.  According to Ms. Hunter, this understanding allowed the Hunters to spend campaign funds on certain personal matters they wished to conceal from the other.  For example, she hid from Duncan Hunter certain purchases she made with campaign funds for items like children’s school lunches.

On the other hand, when they improperly spent funds when they were together, they both recognized that campaign funds were being spent on personal activities. For example, after returning home from their personal Boise and Las Vegas vacation, Duncan Hunter and Ms. 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 vacation expenses. 

Even after Duncan Hunter’s chief of staff questioned several expenses the Hunters had made using campaign funds, Ms. Hunter admitted that the Hunters falsely insisted to campaign staff and on public reports that the personal expenses were in fact appropriate campaign-related charges.  Moreover, Ms. Hunter acknowledged that she and Duncan Hunter continued using 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.

DEFENDANTS                                            Case Number 18cr3677-W                          

Margaret E. Hunter                                         Age: 44                       Alpine, CA

SUMMARY OF CHARGE

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

AGENCY

Federal Bureau of Investigation

NEWS RELEASE SUMMARY – June 11, 2019

SAN DIEGO – The Department of Justice today announced that it has filed a lawsuit alleging that Larry Nelson, owner and manager of residential housing in Spring Valley, violated the Fair Housing Act by subjecting female tenants of his properties to sexual harassment and retaliation.

The lawsuit, filed in the U.S. District Court for the Southern District of California, alleges that Nelson engaged in sexual harassment and retaliation of female tenants from at least 2005 to the present, by, among other things, engaging in unwelcome sexual touching, offering to reduce monthly rental payments in exchange for sex, making unwelcome sexual comments and advances, making intrusive and unannounced visits to female tenants’ homes to further his sexual advances, and evicting or threatening to evict female tenants who objected or refused his sexual advances.

“The Fair Housing Act prohibits sexual harassment and retaliation in housing,” said Assistant Attorney General Eric Dreiband.  “Any landlord who sexually harasses his tenants or retaliates against them for refusing sexual advances, destroys their housing security and risks families’ ability to keep a roof over their heads.  Anyone who engages in this kind of disgusting and illegal conduct should be on notice: the Department of Justice will be coming for you.”

“Let this be a wake-up call for abusive landlords,” said U.S. Attorney Robert Brewer. “Holding a key to someone’s property is not a license to exploit them for sex. The Department of Justice is going to make sure a tenant’s home is a place of safety, not suffering.”

In October 2017, the Department of Justice launched an initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: A new joint Task Force with HUD to combat sexual harassment in housing, an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, and a public awareness campaign, including the release of a national Public Service Announcement.  Since launching the initiative, the Department of Justice has filed 10 lawsuits alleging a pattern or practice of sexual harassment in housing.

Today’s lawsuit seeks monetary damages to compensate the victims, a civil penalty to vindicate the public interest, and a court order barring future discrimination and harassment. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.

The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Larry Nelson, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select mailbox 9991 to leave a message.

Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at fairhousing@usdoj.gov.

Click here for complaint

###

The Department of Justice today announced that it has filed a lawsuit alleging that Larry Nelson, owner and manager of residential housing in Spring Valley, California, violated the Fair Housing Act by subjecting female tenants of his properties to sexual harassment and retaliation.

The lawsuit, filed in the U.S. District Court for the Southern District of California, alleges that Nelson engaged in sexual harassment of and retaliation against female tenants from at least 2005 to the present, by, among other things, engaging in unwelcome sexual touching, offering to reduce monthly rental payments in exchange for sex, making unwelcome sexual comments and advances, making intrusive and unannounced visits to female tenants’ homes to further his sexual advances, and evicting or threatening to evict female tenants who objected or refused his sexual advances.

“The Fair Housing Act prohibits sexual harassment and retaliation in housing,” said Assistant Attorney General Eric Dreiband. “Any landlord who sexually harasses his tenants or retaliates against them for refusing sexual advances, destroys their housing security and risks families’ ability to keep a roof over their heads.  Anyone who engages in this kind of disgusting and illegal conduct should be on notice:  the Department of Justice will be coming for you.”

“Let this be a wake-up call for abusive landlords,” said U.S. Attorney Robert Brewer. “Holding a key to someone’s property is not a license to exploit them for sex. The Department of Justice is going to make sure a tenant’s home is a place of safety, not suffering.”

In October 2017, the Department of Justice launched an initiative to combat sexual harassment in housing. In April 2018, the Department announced the nationwide rollout of the initiative, including three major components: an outreach toolkit to leverage the Department’s nationwide network of U.S. Attorney’s Offices, a public awareness campaign, including the release of a national Public Service Announcement and a new joint Task Force with HUD to combat sexual harassment in housing. Since launching the initiative, the Department of Justice has filed ten lawsuits alleging a pattern or practice of sexual harassment in housing.

Today’s lawsuit seeks monetary damages to compensate the victims, a civil penalty to vindicate the public interest, and a court order barring future discrimination and harassment. The complaint contains allegations of unlawful conduct; the allegations must be proven in federal court.

The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Larry Nelson, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line, at 1-800-896-7743, and select mailbox 9991 to leave a message.

Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at fairhousing@usdoj.gov.

SAN DIEGO – Today, a federal jury convicted Defendants Conoly Freddie Franklin and Andre Anthony Franklin of attempted enticement of minors to engage in prostitution, in violation of 18 U.S.C. § 2422(b).  Defendant Conoly Franklin was also convicted of attempted enticement of an adult to engage in prostitution, in violation of 18 U.S.C. § 2422(a).

The evidence at trial established that between August 22, 2018, and August 31, 2018, Conoly Franklin communicated with an undercover officer with the San Diego County Sheriffs’ Department who was working with the San Diego Human Trafficking Task Force.  Believed that the officer was a young woman with a teenage sister, over the course of nine days, Conoly Franklin attempted to recruit the officer’s undercover persona and her 16-year old sister to work as prostitutes for him in Reno, Nevada.  On August 30, 2018, Conoly Franklin advised he had obtained a vehicle in order to pick up both girls, was bringing his “boy,” and was beginning his trip to the San Diego area location provided by the undercover officer.  Conoly Franklin arrived the following morning, along with his son, Andre Anthony Franklin, at which point San Diego Human Trafficking Task Force officers arrested both defendants.  Following the Defendants’ arrest, Task Force Officers learned that throughout the trip, Andre Franklin was communicating with someone he believed to be another 16-year old girl, in Napa, California, but who was actually an undercover deputy with the Napa County Special Investigations Bureau.  Andre Franklin told the deputy that he would be picking her up and taking her back to Reno to work for him as a prostitute, after he and his father picked up the sisters in San Diego.

The evidence at trial included a text message between Andre Franklin and “Pops,” from Tuesday, August 28, 2018, in which “Pops” asks Andre, “Wanna rock with me to San Diego, got 2 on deck.”  Evidence also showed that the undercover deputy in Napa, California told Andre Franklin that she was 16-years-old.  Undeterred, Andre Franklin continued to discuss performing commercial sex acts and the price that she would need to pay to work for him.

“The cavalier sex trafficking of children triggers traumas that can affect victims for decades,” said U.S. Attorney Robert S. Brewer, Jr.  “Thanks to the efforts of dedicated officers with the San Diego Human Trafficking Task Force and Napa County Special Investigations Bureau and Assistant U.S. Attorneys Katie McGrath, Eric Roscoe, and Mark Conover, these defendants’ devious plans were thwarted in their tracks.”

Sentencing is set for September 9, 2019 before Federal District Court Judge William Hayes.

DEFENDANTS                                Case Number: 18-CR-4187-WQH

Conoly Freddie Franklin

Andre Anthony Franklin

SUMMARY OF CHARGES

Attempted enticement of an adult (Conoly Franklin)            18 U.S.C. § 2422(a)

Penalty: A maximum of 20 years in prison; a maximum of $250,000, up to five years of supervised release.

Attempted enticement of a minor (both Defendants)             18 U.S.C. § 2422(b)

Penalty: A mandatory minimum of ten years and a maximum of life in prison; a maximum of $250,000, at least five years of supervised release and up to life.

INVESTIGATING AGENCIES

San Diego County Sheriffs’ Department

Federal Bureau of Investigation

San Diego Human Trafficking Task Force

Napa County Special Investigations Bureau

Assistant U. S. Attorney Stephen Wong (619) 546-9464    

NEWS RELEASE SUMMARY – June 3, 2019

SAN DIEGO – Justin Wayne Caldwell was sentenced in federal court today to 151 months prison in connection with the robberies of 11 San Diego area businesses in January and February 2017. U.S. District Judge Thomas J. Whelan also ordered Caldwell and his codefendant, Carlos Adolfo Soto, to pay $42,000 restitution to the victims.

Soto was sentenced to 140 months on May 27, 2019.

As described in his plea agreement, the spree of robberies involved 10 Metro PCS stores and a Subway Restaurant, all in San Diego County. The first robbery occurred on January 25, 2017 and the last on February 21, 2017. Soto admitted to committing eight of the eleven robberies, and to being part of a conspiracy that involved 11 robberies. In most of his robberies, Soto used a pellet gun that resembled a pistol during the robberies, pointing the weapon at store clerks and customers and demanding cellular phones and cash.

Soto was dubbed the “pinky bandit” for his distinctive pinky finger, which protruded out from the weapons he held during a string of eleven robberies. In a typical robbery, Soto entered the store holding a weapon such as a machete, tazer, or pellet gun that resembled a firearm. Soto pointed his weapon at store clerks and demanded cellular phones and cash. On one occasion, Soto threatened a store clerk with a machete, which he wielded during the robbery.

According to the government’s sentencing memorandum and admissions in his plea agreement, Caldwell typically waited outside the store in a car, serving as the getaway driver who helped Soto escape the crime scene. On at least one occasion, Caldwell also entered the store with a weapon. For example, on February 14, 2017, Soto and Caldwell pointed an object that resembled a handgun at a store clerk and forced the clerk into a storage area in the back of the store, where he was made to kneel down on his hands and feet, while they loaded a backpack with cellular phones. They then ordered the clerk to open the cash register.

Public filings describe how FBI agents and robbery detectives with the San Diego Police Department and the San Diego Sheriff’s Department collaborated to solve this case. In late January and early February of 2017, investigators noticed a series of robberies around San Diego County that fit a pattern. Ten of the 11 robberies involved Metro PCS cell phone stores and in each case the robbers used similar methods, weapons and disguises. Investigators identified the robbers after one of them registered a cell phone that had been stolen during an earlier robbery. Surveillance ultimately led investigators to the scene of the final robbery in the series. Soto was arrested after a foot chase, during which he dropped merchandise taken during the final robbery. Officers arrested Caldwell in his car, parked at the scene.

DEFENDANTS                                Case Number 17-CR-558-W

Carlos Adolfo Soto                 Age: 41                       San Diego, CA

Justin Wayne Caldwell           Age: 32                       San Diego, CA 

SUMMARY OF CHARGES

Hobbs Act Robbery, 18 U.S.C. § 1951

Maximum penalty:  Twenty years in prison, $250,000 fine, 3 years’ supervised release

INVESTIGATING AGENCIES

Federal Bureau of Investigation

San Diego Police Department

San Diego Sherriff’s Department 

Assistant U.S. Attorneys Melanie K. Pierson (619) 546-7976 or Sherri Hobson (619) 961-0287

NEWS RELEASE SUMMARY – May 31, 2019

SAN DIEGO – Former U.S. Border Patrol Agent Cesar Daleo was sentenced in federal court yesterday to 30 months in prison for conspiring to distribute a controlled substance that is used to make deadly fentanyl, and 24 months for conspiring to smuggle a protected species of sea cucumber. The sentences will run concurrently.

In the sea cucumber case, U.S. District Court Judge Gonzalo P. Curiel found that the defendant paid another individual to smuggle bags of dried sea cucumber (Isostichopus fuscus) into the United States from Mexico on at least 80 occasions between the fall of 2014 and the fall of  2016.  The court also found that the value of the sea cucumber that Daleo helped to smuggle exceeded $250,000.

Isostichopus fuscus is the only species of sea cucumber found in Mexico that is protected under the Convention on International Trade in Endangered Species (CITES).  In order to legally import fuscus, a CITES certificate issued by the country of origin (in this case, Mexico) must be presented at the time of importation.  Isostichopus fuscus is prized in Asian communities for use in soup, based on it supposed medical properties.

In the drug case, the defendant admitted in his plea agreement that he conspired to distribute a controlled substance, known as 4-anilino-N-phenethyl-4-piperidine (4ANPP),” which is the immediate precursor or the primary ingredient for manufacturing deadly fentanyl.

Daleo was arrested on August 29, 2017, while trying to drive into Mexico with a package that he believed contained 4ANPP (4-anilino-N-phenethyl-4-piperidine), a Schedule II Controlled Substance. According to court records, Daleo had just picked up the package, shipped from China, at a post office box in San Ysidro. He had previously picked up 13 other packages from the same post office box.

Unbeknownst to Daleo, a few weeks earlier on August 11, 2017, a U.S. Customs and Border Protection agent stationed at Los Angeles International Airport had intercepted a package from China and discovered it contained 4ANPP.  Homeland Security Investigations agents then replaced the 4ANPP with a harmless substance and waited for someone to pick it up at its destination in San Ysidro, California. When Daleo did so, and then headed to Mexico, he was intercepted by law enforcement before crossing the border. As part of his plea, the defendant admitted in court that there was an agreement to distribute 4ANPP and that he joined the agreement knowing its purpose and intending to help accomplish that purpose.

He also admitted that the parcels contained a substance that could be used to manufacture more illegal drugs. One kilogram of precursor 4ANPP, the amount seized on August 11, 2017, is enough manufacture approximately 25 kilograms of fentanyl in a Mexican drug lab.

“This is a fitting sentence for a former law enforcement agent who knew the dangers of drugs like fentanyl, yet did not hesitate to hand them out, for a price,” said U.S. Attorney Robert Brewer. “Now it is he who will pay a price for distributing a drug that destroys lives, families and communities.”

DEFENDANT 

Cesar Daleo                                         Age: 49                                   Chula Vista, California

SUMMARY OF CHARGES

Criminal Case No. 18cr2968-GPC

Conspiracy, 18 U.S.C. § 371

Maximum penalty: Five years in prison, $250,000 fine or twice the gross gain or loss caused by the offense; restitution; forfeiture of proceeds generated from the crime

Criminal Case No. 17cr3-41-GPC

Conspiracy to Distribute a Controlled Substance, 21 U.S.C. §§ 846 and 841

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

AGENCIES

U.S. Fish and Wildlife Service, Office of Law Enforcement

National Oceanic and Atmospheric Administration, Office of Law Enforcement

Homeland Security Investigations

Customs and Border Protection

U.S. Postal Inspection Service

U.S. Drug Enforcement Administration

Assistant U. S. Attorney Stephen Wong (619) 546-9464    

NEWS RELEASE SUMMARY – May 28, 2019

SAN DIEGO – Carlos Adolfo Soto was sentenced in federal court today to 140 months prison in connection with the robberies of 11 San Diego area businesses in January and February 2017. U.S. District Judge Thomas J. Whelan also ordered Soto to pay restitution to the victims.

Soto’s co-defendant, Justin Wayne Caldwell (42), is set to be sentenced on June 3, 2019.

As described in his plea agreement, the spree of robberies involved 10 Metro PCS stores and a Subway Restaurant, all in San Diego County. The first robbery occurred on January 25, 2017 and the last on February 21, 2017. Soto admitted to committing eight of the eleven robberies, and to being part of a conspiracy that involved 11 robberies. In most of his robberies, Soto used a pellet gun that resembled a pistol during the robberies, pointing the weapon at store clerks and customers and demanding cellular phones and cash.

Soto was dubbed the “pinky bandit” for his distinctive pinky finger, which protruded out from the weapons he held during a string of eleven robberies. In a typical robbery, Soto entered the store holding a weapon such as a machete, tazer, or pellet gun that resembled a firearm. Soto pointed his weapon at store clerks and demanded cellular phones and cash. On one occasion, Soto threatened a store clerk with a machete, which he wielded during the robbery.

According to the government’s sentencing memo and admissions in his plea agreement, Caldwell typically waited outside the store in a car, serving as the getaway driver who helped Soto escape the crime scene. On at least one occasion, Caldwell also entered the store with a weapon. For example, on February 14, 2017, Soto and Caldwell pointed an object that resembled a handgun at a store clerk and forced the clerk into a storage area in the back of the store, where he was made to kneel down on his hands and feet, while they loaded a backpack with cellular phones. They then ordered the clerk to open the cash register.

Public filings describe how FBI agents and robbery detectives with the San Diego Police Department and the San Diego Sheriff’s Department collaborated to solve this case. In late January and early February of 2017, investigators noticed a series of robberies around San Diego County that fit a pattern. Ten of the 11 robberies involved Metro PCS cell phone stores and in each case the robbers used similar methods, weapons and disguises. Investigators identified the robbers after one of them registered a cell phone that had been stolen during an earlier robbery. Surveillance ultimately led investigators to the scene of the final robbery in the series. Soto was arrested after a foot chase, during which he dropped merchandise taken during the final robbery. Officers arrested Caldwell in his car, parked at the scene.

“These robberies were terrifying experiences for the victims, one of whom was threatened with a machete,” said U.S. Attorney Robert Brewer. “Prosecuting violent crime is a top priority for this office. This case is an example of great detective work by the FBI and local law enforcement partners as well as diligence by prosecutor Stephen Wong.”

“The investigation into this robbery series exemplifies the dedication of the San Diego FBI to rid our communities of violent crime,” said Scott Brunner, FBI Special Agent in Charge. “This significant sentence is the result of our continued efforts to keep the community safe from violence, fear and intimidation by working together with our local law enforcement partners on our Violent Crimes Task Force.”

The amount of restitution will be finalized after both defendants are sentenced.

DEFENDANTS                                Case Number 17-CR-558-W

Carlos Adolfo Soto                 Age: 41                       San Diego, CA

Justin Wayne Caldwell           Age: 32                       San Diego, CA 

SUMMARY OF CHARGES

Hobbs Act Robbery, 18 U.S.C. § 1951

Maximum penalty:  Twenty years in prison, $250,000 fine, 3 years’ supervised release

INVESTIGATING AGENCIES

Federal Bureau of Investigation

San Diego Police Department

San Diego Sherriff’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 Jonathan I. Shapiro (619) 546-8225    

NEWS RELEASE SUMMARY – May 28, 2019

SAN DIEGO – Morgan Rockcoons of Las Vegas, Nevada, was sentenced today by U.S. District Judge Anthony J. Battaglia to 21 months in prison for wire fraud and operating an unlicensed money transmitting business. Judge Battaglia also ordered Rockcoons to forfeit $80,600 in illicit profits.

Rockcoons, a U.S. citizen, has been in custody since his arrest on October 29, 2018.  He pleaded guilty on March 7, 2019, admitting that he operated a Bitcoin exchange without registering with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury.  He also admitted to devising a scheme to defraud individuals in connection with the purported sale of real estate in Elko County, Nevada, that he did not own.

According to the government’s sentencing memorandum, Rockcoons advertised his Bitcoin exchange services on the website LocalBitcoins.com. In 2015, HSI identified Rockcoons as the most prolific San Diego-based seller. In April 2016, the defendant’s LocalBitcoins.com profile showed that he continued to advertise as a trader and seller of Bitcoin in San Diego, with his profile reflecting that he had engaged in more than 500 transactions. As of October 2017, the defendant’s profile indicated that he conducted more than 1,000 bitcoin trades with more than 644 people.  Rockcoons received a commission of as much as 36 percent per transaction.

Prior to his 2018 arrest, Rockcoons was indicted on November 8, 2017 for operating the unlicensed money transmitting business.  He was arrested on that charge on February 9, 2018, and he was released on bond pending trial. In spring 2018, while on pretrial release, Rockcoons began promoting Bitcointopia on the internet and via social media.  A purported real estate development in the desert in Elko County, Nevada, Rockcoons touted Bitcointopia as a place where bitcoin is “legal tender.” On the website, Rockcoons offered parcels of land for sale for Bitcoin, claiming: “The land is currently owned by Bitcointopia, Inc. corporation.”  Rockcoons further stated, “500-1,000 Acre plots are for sale for 0.5 BTC per acre.” Victims who sent Rockcoons Bitcoin never received their title to land as promised.  To date, agents have identified at least 10 victims of Rockcoons’ fraud. The two cases were combined in a superseding indictment.

DEFENDANT                                               Case Number 17cr3690-AJB                                              

Morgan Rockcoons                                         Age: 31                                   Las Vegas, NV

SUMMARY OF CHARGES

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

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

Wire Fraud – Title 18, U.S.C., Section 1960(a)

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

AGENCY

Homeland Security Investigations

 

 

Assistant U. S. Attorneys Andrew Young (619) 546-7981, Benjamin J. Katz (619) 546-9604, Mark W. Pletcher (619) 546-9714

NEWS RELEASE SUMMARY – May 28, 2019

SAN DIEGO – Vincent Ramos, the chief executive of Canada-based Phantom Secure, was sentenced to nine years in prison today for leading a criminal enterprise that facilitated the transnational importation and distribution of narcotics through the sale of encrypted communication devices and services.  The Court also ordered Ramos to forfeit $80 million as proceeds of the crime, as well as specifically identified assets, including international bank accounts, real estate, cryptocurrency accounts, and gold coins.    

This conviction marks the first time the United States targeted a company and convicted its chief executive for knowingly providing transnational criminal organizations with the encrypted infrastructure to conduct the international importation and distribution of narcotics.

“Vincent Ramos is going to prison because he provided violent, drug trafficking organizations with a high tech tool that enabled them to coordinate their crimes while staying in the shadows,” said U.S. Attorney Robert Brewer.  “But Ramos’s system is down permanently, he has forfeited his wealth, and he is going to prison for nearly a decade.  We will continue to investigate and prosecute these individuals, whether they are the ones transporting and selling drugs, or providing the tools to those who do.”

“I want to thank prosecutors Andrew Young, Ben Katz and Mark Pletcher, as well as the FBI, DEA, Customs and Border Protection, Homeland Security Investigations, U.S. Marshals Service, Washington State Police, the Bellingham and Blaine Police Departments, and all of our law enforcement partners around the world, including Australia, Canada, Panama, Hong Kong, and Thailand for their hard work on this case,” Brewer said.

“Striking at the heart of organized crime has always been a priority for the FBI,” said Scott Brunner, FBI Special Agent in Charge of the San Diego Field Office. “This case demonstrates that no matter the dangerous criminal activity or the advanced technology used by these sophisticated criminal enterprises, the FBI will keep pace to infiltrate and dismantle the organizations that, in today’s world, operate domestically and internationally. As a result, the FBI joins forces with exceptional law enforcement partners both in the U.S. and abroad, to ensure every tentacle of the global enterprise is severed and cannot operate its illegal and dangerous crimes.”

Ramos advertised Phantom Secure’s products as impervious to decryption, wiretapping or legal third-party records requests. Phantom Secure routinely deleted and destroyed evidence from devices that it knew had been seized by law enforcement.  According to Court documents, Phantom Secure’s clients used email handles like the following to conduct criminal activities:  leadslinger@freedomsecure.me; The.cartel@freedomsecure.me; The.killa@freedomsecure.me; Trigger-happy@lockedpgp.com; Knee_capper9@lockedpgp.com; Elchapo66@lockedpgp.com;  Time4a187@freedomsecure.me.     

According to court documents, one of Ramos’s customers, Owen Hanson (who was previously sentenced to 21 years in custody), used only six Phantom Secure devices to coordinate the transportation of more than a ton of cocaine from Mexico into the United States and on to Canada and Australia.  The government conservatively estimates there were at least 7,000 Phantom Secure devices in use at the time Ramos was arrested--meaning that “the amount of drugs Phantom Secure aided and abetted in transporting by providing devices and services to criminals worldwide was too high calculate.” 

Ramos’ customers used his products to devastating and sometimes deadly effect, and Ramos used this to market his encryption services to criminals across the world.  According to court documents, in response to a March 5, 2014 news article that reported investigations of a gangland murder were stymied because the suspects used Phantom Secure devices to coordinate the killing, Ramos wrote, “this is the best verification on what we have been saying all along – proven and effective for now over nine years.  It is the highest level of authority confirming our effectiveness.  It can’t get better than that.”    

The international operation to arrest Ramos and seize Phantom Secure’s infrastructure involved cooperation and efforts by law enforcement authorities in the United States, Australia, and Canada, with additional assistance from U.S. and foreign law enforcement in Panama, Hong Kong, and Thailand. 

Ramos’s co-defendants - Kim Augustus Rodd, Younes Nasri, Michael Gamboa and Christopher Poquiz – remain international fugitives, charged with participating in and aiding and abetting a racketeering enterprise and conspiring to import and distribute controlled substances around the world.  All have been charged with Conspiracy to Commit RICO in violation of 18 U.S.C. § 1962 and Conspiracy to Distribute Controlled Substances in violation of 21 U.S.C.  § 841 and 846.

In addition to our foreign law enforcement partners, the U.S. Attorney’s Office further recognizes the support and assistance of the U.S. Drug Enforcement Administration; United States Marshals Service; U.S. Customs and Border Protection; the United States Department of Homeland Security; Seattle and Las Vegas field offices of the Federal Bureau of Investigation; the Washington State Police Department; the City of Bellingham, Washington Police Department; the City of Blaine, Washington Police Department; and the Canada Border Services Agency, among others, without whose help this prosecution could not have been possible.

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.

DEFENDANT                                               Case Number 18CR1404-WQH                                         

Vincent Ramos (1)                                          Richmond, British Columbia, Canada

   aka “CEO”

   aka “Business”

SUMMARY OF CHARGES

Racketeering Conspiracy (RICO Conspiracy), in violation of 18 U.S.C. § 1962(d)

Maximum Penalty: 20 years in prison

AGENCIES

Federal Bureau of Investigation

Drug Enforcement Administration

United States Marshals Service

Department of Justice, Office of International Affairs

Australian Federal Police

New South Wales Police (Australia)

New South Wales Crime Commission (Australia)

Australian Criminal Intelligence Commission

Royal Canadian Mounted Police

International Assistance Group, Department of Justice, Canada

 

Un gran jurado federal en el Tribunal Federal para el Distrito Sur de California acusó a un hombre de California de delitos de odio federales y otros delitos relacionados con armas de fuego, entre ellos el asesinato de una persona y el intento de asesinato de otras 53 más, por sus acciones durante el tiroteo del 27 de abril en la Sinagoga de Chabad de Poway en California y por el incendio provocado del 24 de marzo en la Mezquita Dar-ul-Arqam en Escondido. El Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband, el Fiscal Federal para el Distrito Sur de California, Robert S. Brewer, Jr, y la Agente Especial Encargada en funciones del FBI en San Diego, Suzanne Turner, emitieron el anuncio.

John T. Earnest, 19, de Rancho Peñasquitos, California, fue acusado en la acusación formal de 113 cargos pronunciada hoy. La denuncia presentada el 7 de mayo acusó a Earnest de 54 cargos de obstrucción al libre ejercicio de creencias religiosas con el uso de un arma peligrosa, lo que resultó en la muerte, lesiones corporales e intentos de asesinato; 54 cargos de vulneración de la ley de Prevención de Delitos de Odio de Matthew Shepard y James Byrd Jr. y un cargo de daño a una propiedad religiosa por el uso de fuego en relación al intento de provocar un incendio en la mezquita. La acusación formal añade cuatro cargos por el disparo de un arma de fuego durante el transcurso de esos delitos de violencia.

Según la declaración jurada en apoyo de la denuncia penal, el 27 de abril Earnest condujo a la Sinagoga Chabad en Poway, donde miembros de la congregación se habían reunido para celebrar un culto religioso en honor al Shabat y el último día de la Pascua judía. Earnest entró en el edificio armado con un rifle de asalto AR-15 completamente cargado con un cargador de 10 cartuchos. Él llevaba puesto una funda en el pecho que contenía cinco cargadores adicionales, cada uno de ellos cargados con 10 cartuchos de municiones. La declaración jurada alega que estando dentro de la Sinagoga de Poway, Earnest abrió fuego y asesinó a una persona y lesionó a otros tres miembros de la congregación, entre ellos un menor de edad. Durante una pausa cuando Earnest intentó sin éxito recargar su rifle, varios miembros de la congregación, incluyendo un Agente de la Patrulla Fronteriza fuera de servicio, persiguieron a Earnest mientras este huía de la sinagoga. Earnest huyó de la escena en su carro, pero fue posteriormente capturado por las autoridades policiales, quienes descubrieron el AR-15 y cargadores adicionales de munición en el vehículo.

Más aún, la declaración jurada alega que, tras el tiroteo, los investigadores policiales hallaron un manifiesto en línea con el nombre de Earnest. Una copia del manifiesto se encontró posteriormente en el portátil de Earnest durante la ejecución de una orden de registro. En el manifiesto, Earnest hizo muchas declaraciones antisemíticas y antimusulmanes. En concreto, Earnest se refirió a los «judíos» como raza y manifestó que lo único que lamenta es no haber matado a más personas.

Según la declaración jurada, Earnest también confesó en el manifiesto el incendio provocado de una mezquita en Escondido en marzo del 2019. La declaración jurada alega que el 24 de marzo, siete individuos se encontraban dentro de la mezquita cuando olieron gasolina y vieron llamas saliendo de la grieta de una de las puertas de la mezquita.  Los individuos apagaron el incendio, pero solo después de que el incendio hubiera dañado el exterior de la mezquita. La declaración jurada alega además que el vídeo de vigilancia muestra a un sospechoso llegando a la mezquita en el mismo tipo de vehículo que Earnest empleó para realizar el ataque en la sinagoga. El acusado supuestamente alegó en su manifiesto que se había inspirado por el tiroteo en la sinagoga Tree of Life en Pittsburgh, Pensilvania, y los tiroteos recientes en dos mezquitas en Nueva Zelanda.

Los Fiscales Federales Auxiliares Shane Harrigan, Peter Ko, John Parmley y Caroline Han, juntos con la Abogada de Litigios Rose Gibson, de la División de Derechos Civiles, están enjuiciando este caso en nombre del Gobierno. El FBI, la Oficina del Sheriff de San Diego, la Agencia de Control de Bebidas Alcohólicas, Tabaco, Armas de Fuego y Explosivos (ATF, por sus siglas en inglés), la Policía de San Diego y la Policía de Encondido llevaron a cabo la investigación.

Earnest se enfrenta a la máxima pena posible de muerte o cadena perpetua. Actualmente se encuentra bajo custodia estatal a la espera de cargos penales estatales. Una acusación formal es meramente eso, una acusación, y al acusado se lo considera inocente mientras no se pruebe su culpabilidad ante un tribunal de justicia.

Para más información sobre el trabajo del Departamento de Justicia por combatir y prevenir los delitos de odio, vaya a www.justice.gov/hatecrimes: es un único portal con enlaces a recursos del Departamento de Justicia relacionados con delitos de odio para la policía, los medios de comunicación, investigadores, víctimas, grupos de apoyo y otras organizaciones y personas.

Anexo(s): 

Download earnest_indictment_.pdf

Assistant U.S. Attorneys Matthew J. Sutton (619) 546-8941 and Ryan A. Sausedo (619) 546-9689

NEWS RELEASE SUMMARY – May 21, 2019

SAN DIEGO – Indictments were unsealed today in San Diego federal court charging 43 members of a methamphetamine distribution network tied to the Sinaloa Cartel with federal drug trafficking and money laundering offenses.

During the coordinated takedown that began early this morning, investigators executed over a dozen search warrants and seized approximately 80 pounds of methamphetamine, four firearms, and more than $100,000 in U.S. currency. As of today at 5 p.m., 33 of the forty-three defendants are either in federal or state custody. Authorities are continuing to search for 10 defendants. Many of the defendants are scheduled to be arraigned before U.S. Magistrate Judge Linda Lopez at 10:30 a.m. tomorrow.

According to the indictments and other publicly filed court documents, this San Diego based network supplied multi-kilogram quantities of methamphetamine and gamma-hydroxybutyrate (GHB) to dozens of subdistributors located throughout the United States and the world, including California, Arizona, Oregon, Wyoming, Texas, Arkansas, Florida, Virginia, Washington, D.C., New Jersey, New York and the United Arab Emirates. In return, tens of thousands of dollars in narcotics proceeds were returned to the network’s leaders via shipments of bulk cash, structured cash deposits into bank accounts, and online money transfer systems like PayPal, Zelle, Venmo, and Cash App.

The defendants operated the drug-trafficking scheme by arranging for the shipment of large quantities of methamphetamine from San Diego to various locations in the United States and internationally, through FedEx and the United States Postal Service (USPS). The drug shipments were mailed weekly to various hotels, residences, and Airbnb locations. As part of the scheme, the defendants also created multiple fraudulent FedEx accounts. These fraudulent FedEx accounts were billed to and paid for by large corporations, in hopes that the large businesses would not notice the illicit packages.

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 a six-month-long federal wiretap to track the communications and the location of the defendants. In conjunction with the wiretaps, agents ultimately seized approximately 78 pounds of methamphetamine and four firearms tied to the network.

In addition to the indictments announced today, more than a dozen defendants who worked with this network have been charged in connection with this investigation in multiple jurisdictions across the United States, including by the U.S. Attorney’s Offices for the District of New Jersey, the Eastern District of Virginia, the Western District of Texas, and Eastern District of Arkansas, as well as the Florida Office of the Attorney General and the Yuma, Arizona County Attorney’s Office.

“Today we have completely dismantled this San Diego-based international drug trafficking network with ties to the Sinaloa Cartel,” said U.S. Attorney Robert Brewer. “I want to congratulate the outstanding federal, state, and local law enforcement cooperation that resulted in this highly successful investigation. Replicating this kind of aggressive law enforcement takedown is critical to breaking the backs of these criminal networks and continuing our efforts against the Sinaloa Cartel.”

“The Sinaloa Cartel relies on members of our communities to distribute their drugs.  Because they manipulate our commercial distribution routes to make a buck, our streets are flooded with high purity and low cost methamphetamine,” said DEA Special Agent in Charge Karen Flowers.  “Without their distribution networks, such as the one dismantled today, cartels would not be able to operate drug businesses that rival Fortune 500 companies and dangerous drugs, like methamphetamine, would be scarce, expensive and of low purity.  The operation today will ultimately disrupt the supply chain, diminish profits and make it harder for the Sinaloa Cartel to do business in the United States.  Just as important, today’s operation sends a message: If you’re profiting from drug addiction, you will be pursued relentlessly by DEA, regardless of your role in the distribution network.”

“As alleged, the defendants ran a sophisticated network of drug trafficking and money laundering,” said Johnathan Smith, IRS Assistant Special Agent in Charge of the Los Angeles Field Office.   “This case demonstrates our ability to identify and trace even the most sophisticated drug trafficking and money laundering organizations.  IRS – Criminal Investigation, in conjunction with our law enforcement partners, will remain committed to disrupting the flow of illicit drug proceeds and dismantling the most sophisticated drug and money laundering organizations.”

“There is no place for illegal drugs in our communities,” said Undersheriff Michael Barnett. “Drugs ruin the life of the user and destroy families. Those who push drugs into our neighborhoods and homes must be held accountable. This massive operation was uncovered because of a Sheriff's Detective and DEA Special Agent who followed up on information. Working together, the Sheriff's Department will continue to target those responsible for distributing and selling illegal drugs in our communities.”

U.S. Attorney Brewer also praised federal, state, and local law enforcement for the coordinated team effort in the culmination of this investigation. 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), the Escondido Police Department (EPD), United States Border Patrol (USBP), and the San Diego County Probation Office. Agents and officers from the United States Marshals Service, the United States Postal Inspection Service, 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. He also thanked our vital foreign law enforcement partners in the United Arab Emirates – the Abu Dhabi Police.

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 Ryan A. Sausedo.

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

 

Defendants                                                                                     Criminal Case No: 19-cr-1787-BAS

Defendant Number

Name

Age

Hometown

1

Ramon Anthony Hernandez

30

San Diego, CA

2

Tomas Teters

54

San Diego, CA

3

Natalya Soheli

27

San Diego, CA

4

Giorgio Jabsi

27

San Diego, CA

5

William Whitenack

45

Palm Springs, CA

6

Derrick Davidson

41

San Diego, CA

7

Chase Michael Berkman

33

San Diego, CA

8

Jose Rodriguez

40

Chula Vista, CA

9

Heath Sean Silvercloud

42

San Diego, CA

10

Keith Acker

29

San Diego, CA

11

*

41

San Diego, CA

12

*

47

Huntington Beach, CA

13

Christopher Halton

33

Palm Springs, CA

14

*Nicholas Ramirez

41

San Diego, CA

15

Jose Luis Magdaleno

28

San Diego, CA

16

*Corinna Vasquez

48

Oceanside, CA

17

Randall Bialek

57

San Diego, CA

18

*

47

San Diego, CA

19

Daniel Godoy

37

Cathedral City, CA

20

Paul Matthew Calzetta

50

Orlando, FL

21

Destin Banks

40

Orlando, FL

22

*Billie Jo Reynolds

40

Gillette, WY

23

Sean O’Brien

53

San Diego, CA

24

Mark Seymour

36

San Diego, CA

25

Christopher Groves

48

Miami, FL

26

*

45

Moreno Valley, CA

27

Javier Rivera

41

Chula Vista, CA

28

Carlos Velasco

42

Imperial Beach, CA

29

Christian Raggio

26

Imperial Beach, CA

30

Cody Parker

28

San Diego, CA

31

Ivan Torres

31

San Diego, CA

32

Arturo Julian Galvin

36

Columbus, OH

33

John Mark Tomsick

53

San Diego, CA

34

Maresha Morrow

32

San Diego, CA

35

Rene Reynoso

45

San Diego, CA

36

*

59

Escondido, CA

37

Kory Strohauer

33

San Diego, CA

38

*

47

San Diego, CA

39

Daniel Hensley

41

Spring Valley, CA

40

Ubaldo Perez

28

San Diego, CA

41

Peter Mohrmann

53

San Diego, CA

42

Robert Montell

57

San Diego, CA

*Fugitives

Summary of Charges

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

Conspiracy to Launder Monetary Instruments (18 U.S.C. §§ 1956(a)(1) and (h))

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

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 imprisonment, $10,000,000 fine and a lifetime of supervised release. For money laundering charges, term of custody up to 20 years’ imprisonment, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and 3 years of supervised release.

Defendant                                                                                        Criminal Case No: 19-cr-1788-BAS

Defendant Number

Name

Age

Hometown

1

*

36

Vista, CA

Summary of Charges

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

Maximum Penalties: A term of custody including a mandatory minimum 10 years and up to life imprisonment, a $10,000,000 fine and a lifetime 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 Postal Inspection Service

United States Border Patrol

Federal Bureau of Prisons

San Diego Police Department

Escondido Police Department

National City Police Department

San Diego County Probation Office

San Diego County District Attorney’s Office

Riverside County Sheriff's Department

Austin, Texas Police Department

Seminole County, Florida Sheriff’s Department

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 New Jersey

U.S. Attorney’s Office for the Eastern District of Virginia

U.S. Attorney’s Office for the Western District of Texas

U.S. Attorney’s Office for the Eastern District of Arkansas

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

U.S. Attorney’s Office for the Middle District of Florida

U.S. Attorney’s Office for the Southern District of Florida

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

Florida Office of the Attorney General

Yuma, Arizona County Attorney’s Office

Abu Dhabi Police

Assistant U. S. Attorneys Shane Harrigan (619) 546-6981, Caroline Han (619) 546-6968  and Peter Ko (619) 546-7359  

SAN DIEGO – John T. Earnest of Rancho Peñasquitos was indicted by a federal grand jury this morning on civil rights, hate crime, and firearm charges in connection with the murder of one person and the attempted murder of 53 others at the Chabad of Poway Synagogue on April 27 and the March 24 arson of the Dar-ul-Arqam Mosque in Escondido.

The original complaint filed on May 7 charged Earnest with 54 counts of obstruction of free exercise of religious beliefs using a dangerous weapon, resulting in death, bodily injury, and attempts to kill; 54 counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act; and one count of damage to religious property by use of fire in relation to the attempted arson of the mosque. The indictment adds four charges for discharging a firearm during crimes of violence.

Earnest is scheduled to be arraigned on the indictment June 4, 2019 at 1:30 p.m. before U.S. Magistrate Judge Michael S. Berg.

According to the affidavit in support of the criminal complaint, on April 27, Earnest drove to the Chabad of Poway Synagogue, where members of the congregation were gathered to engage in religious worship celebrating Shabbat and the last day of Passover. Earnest entered the building armed with an AR-15 style semi-automatic rifle that was fully loaded with a 10-round magazine. He wore a chest rig that contained five additional magazines, each loaded with 10 rounds of ammunition.

The affidavit alleges that while inside the Poway Synagogue, Earnest opened fire, killing one person and injuring three other members of the congregation, including a juvenile. During a pause when Earnest unsuccessfully attempted to reload his firearm, several congregant members, including an off-duty Border Patrol Agent, chased Earnest, and Earnest fled from the Synagogue. Earnest was subsequently apprehended by law enforcement authorities who discovered the AR-15 and additional magazines of ammunition in his car.

The affidavit further alleges that after the shooting, law enforcement investigators found a manifesto online bearing Earnest’s name. In the manifesto, Earnest made many anti-Semitic and anti-Muslim statements. Specifically, Earnest referred to “Jews” as a race, and he stated his only regret was that he did not kill more people.

According to the affidavit, Earnest also admitted in the manifesto to the arson of the Dar-ul-Arqam Mosque in March 2019. The affidavit alleges that on March 24, seven individuals were inside the mosque when they smelled gasoline and saw flames coming through the crack of one of the mosque’s doors. The individuals put out the fire, but not before the fire had damaged the exterior of the mosque. The affidavit further alleges that surveillance video showed a suspect arriving at the mosque in the same type of vehicle Earnest used in committing the attack on the Synagogue. The defendant allegedly claimed in his manifesto that he was inspired by the Tree of Life synagogue shooting in Pittsburgh, Pennsylvania, and the recent shootings at two mosques in New Zealand.

Assistant U.S. Attorneys Shane Harrigan, Peter Ko, John Parmley, and Caroline Han, along with Trial Attorney Rose Gibson of the Civil Rights Division, are prosecuting this case on behalf of the government. The FBI, San Diego Sheriff’s Office, ATF, San Diego Police Department, and Escondido Police Department conducted the investigation.

Some of the charges, by statute, make Earnest eligible for the death penalty. The Attorney General will decide whether to seek the death penalty at a later time. Earnest is currently in state custody pending state criminal charges.

An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty in a court of law.

For more information about the Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to Department of Justice hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals. 

DEFENDANT                                               Case Number 19cr1850                                           

John T. Earnest                                               Age: 19                                   San Diego, CA

SUMMARY OF CHARGES

Obstruction of Free Exercise of Religious Beliefs Resulting in Death and Bodily Injury; and Involving Attempt to Kill, Use of a Dangerous Weapon - 18 U.S.C. §§  247(a)(2), 247(d)(1) and 247(d)(3)

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

Hate Crime Acts – 18 U.S.C. § 249(a)(1)(B)(i)(ii)

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

Damage to Religious Real Property Involving Use of a Dangerous Weapon or Fire – 18 U.S.C. §§ 247(a)(1), 247 (d)(3) 

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

Using and Carrying a Firearm During and In Relation to a Crime of Violence – Title 18, U.S.C., Sec. and 924(c) and 924(j)

Maximum penalty: Life in prison or death and $250,000 fine, mandatory minimum 10 years in prison

Using and Carrying a Firearm During and In Relation to a Crime of Violence – Title 18, U.S.C., Sec. and 924(c)

Maximum Penalty: Life in prison and $250,000 fine, mandatory minimum 10 years in prison

AGENCIES

Federal Bureau of Investigation

San Diego County Sheriff’s Department

San Diego Police Department

Bureau of Alcohol, Tobacco, Firearms and Explosives

San Diego County District Attorney’s Office

Escondido Police Department

 

 

A federal grand jury sitting in the U.S. District Court for the Southern District of California charged a California man with federal hate crimes and additional firearms offenses, including the murder of one person and the attempted murder of 53 others, for his actions during the April 27 shooting at the Chabad of Poway Synagogue in California and the March 24 arson of the Dar-ul-Arqam Mosque in Escondido. Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S. Attorney Robert S. Brewer Jr. for the Southern District of California, and San Diego FBI Acting Special Agent in Charge Suzanne Turner made the announcement.

John T. Earnest, 19, of Rancho Peñasquitos, California, was charged in the 113-count indictment returned today. The original complaint filed on May 7, charged Earnest with 54 counts of obstruction of free exercise of religious beliefs using a dangerous weapon, resulting in death, bodily injury, and attempts to kill; 54 counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act; and, one count of damage to religious property by use of fire in relation to the attempted arson of the mosque. The indictment adds four charges for discharging a firearm during those crimes of violence.

According to the affidavit in support of the criminal complaint, on April 27, Earnest drove to the Chabad of Poway Synagogue, where members of the congregation were gathered to engage in religious worship celebrating Shabbat and the last day of Passover. Earnest entered the building armed with an AR-15 style semi-automatic rifle that was fully loaded with a 10-round magazine. He wore a chest rig that contained five additional magazines, each loaded with 10 rounds of ammunition. The affidavit alleges that while inside the Poway Synagogue, Earnest opened fire, killing one person and injuring three other members of the congregation, including a juvenile. During a pause when Earnest unsuccessfully attempted to reload his firearm, several congregant members, including an off-duty Border Patrol Agent, chased Earnest as he fled from the Synagogue. Earnest fled the scene in his car, but was subsequently apprehended by law enforcement authorities who discovered the AR-15 and additional magazines of ammunition in his car.

The affidavit further alleges that after the shooting, law enforcement investigators found a manifesto online bearing Earnest’s name. A copy of the manifesto was later found on Earnest’s laptop during the execution of a search warrant. In the manifesto, Earnest made many anti-Semitic and anti-Muslim statements. Specifically, Earnest referred to “Jews” as a race, and he stated his only regret was that he did not kill more people.

According to the affidavit, Earnest also admitted in the manifesto to the arson of the Dar-ul-Arqam Mosque in March 2019. The affidavit alleges that on March 24, seven individuals were inside the mosque when they smelled gasoline and saw flames coming through the crack of one of the mosque’s doors. The individuals put out the fire, but not before the fire had damaged the exterior of the mosque. The affidavit further alleges that surveillance video showed a suspect arriving at the mosque in the same type of vehicle Earnest used in committing the attack on the Synagogue. The defendant allegedly claimed in his manifesto that he was inspired by the Tree of Life synagogue shooting in Pittsburgh, Pennsylvania, and the recent shootings at two mosques in New Zealand.

Assistant U.S. Attorneys Shane Harrigan, Peter Ko, John Parmley, and Caroline Han, along with Trial Attorney Rose Gibson of the Civil Rights Division, are prosecuting this case on behalf of the government. The FBI, San Diego Sheriff’s Office, ATF, San Diego Police Department, and Escondido Police Department conducted the investigation.

Earnest faces a maximum possible penalty of death, or life without parole. He is currently in state custody pending state criminal charges. An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty in a court of law.

For more information about the Department of Justice’s work to combat and prevent hate crimes, visit www.justice.gov/hatecrimes: a one-stop portal with links to Department of Justice hate crimes resources for law enforcement, media, researchers, victims, advocacy groups, and other organizations and individuals. 

Assistant U. S. Attorneys Timothy D. Coughlin (619) 546-6768 and Victor P. White 619 546-8439

NEWS RELEASE SUMMARY – May 17, 2019

SAN DIEGO – Luis Antonio Mendez-Brahan of Tijuana and his three California-based adult children were indicted by a federal grand jury for participating in a family-operated alien smuggling organization.

Mendez-Brahan and his children - Christopher Mendez, Wendy Monserrath Mendez and Nancy Jacqueline Suarez - are all charged with one count of Conspiracy to Bring in Illegal Aliens for Financial Gain, to Transport Illegal Aliens and to Conduct Financial Transactions with Proceeds of Specified Unlawful Activity. The father is also charged with five counts of Bringing in Aliens for Financial Gain.

Mendez-Brahan resides in Mexico and remains at large. His children were taken into custody yesterday at their homes in Wasco, California near Bakersfield and Madera, California near Fresno. All made their first appearances in federal court today.

According to the indictment, Mendez-Brahan was the leader of the smuggling organization for almost a decade and was responsible for smuggling hundreds of illegal aliens into the United States. The Mendez-Brahan organization allegedly operated in an area east of the Tecate Port of Entry and used an ever-changing cadre of spotters, guides and drivers to facilitate the smuggling organization’s criminal activities. The indictment alleges that Mendez-Brahan charged between $7,000 and $8,500 for each alien he arranged to be smuggled into the United States.

According to the indictment, the defendants used money service businesses such as Western Union and Money Gram to move money from the U.S. to Mexico. Border Patrol investigators tracked financial transactions conducted by Mendez-Brahan’s children in the United States to money service businesses located in Tijuana and ultimately, to Luis Antonio Mendez-Brahan. The three Mendez-Brahan children used family members in Mexico and the U.S. to send and receive their ill-gotten smuggling proceeds.

This case is the result of ongoing efforts by the United States Border Patrol –San Diego Sector to dismantle active transnational criminal organizations involved in alien smuggling along the U.S.-Mexico border in the Southern District of California.

DEFENDANTS                                            Case Number 19cr1570-JLS                       

Luis Antonio Mendez-Brahan                                    Age: 55                       Tijuana, Baja California, Mexico

Christopher Mendez                                       Age: 28                       Wasco, California

Wendy Monserrath Mendez                           Age: 24                       Wasco, California

Nancy Jacqueline Suarez                                Age: 31                       Madera, California

SUMMARY OF CHARGES

Count 1 (All Defendants) – Conspiracy to Bring in Illegal Aliens for Financial Gain; to Transport Illegal Aliens and to Conduct Financial Transactions with Proceeds of Specified Unlawful Activity – Title 18, U.S.C., Section 371 and Title 18 U.S.C. Section 2 –Aiding and Abetting.

Maximum penalty: Five (5) years’ imprisonment and $250,000 fine

Counts 2-6 (Luis Antonio Mendez-Brahan) - Bringing in Aliens for Financial Gain: - Title 8, U.S.C., Section 1324(a)(2)(B)(ii) and Title 18, U.S.C., Section 2 -  Aiding and Abetting.

Maximum penalty: Each count carries a mandatory minimum term of imprisonment of three (3) years and a maximum of ten (10) years for the first or second violation.  Any additional violations carry a mandatory minimum term of imprisonment of five (5) years and a maximum of fifteen (15) years,

AGENCY

United States Border Patrol

San Diego Sector/El Cajon 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. Attorney Blanca Quintero (619) 546-7118   

NEWS RELEASE SUMMARY – May 16, 2019

SAN DIEGO – Luis Fernando Figueroa of Tijuana pleaded guilty in federal court today to money laundering charges, admitting that he worked with others to launder and transfer money to Mexico through accounts he opened up at Wells Fargo as a personal banker. 

Figueroa’s arrest by the FBI in November 2018 was the last in a string of indictments and arrests tied to the international money laundering organization based in Tijuana, Mexico but operating primarily in San Diego.  To date, eight former members and leaders of the organization have been arrested and charged in San Diego.  Six of those arrested have pleaded guilty.

According to the indictment and other public records, the international money laundering organization laundered approximately $19.6 million dollars in narcotics proceeds on behalf of Mexican based drug trafficking organizations to include the Sinaloa Cartel between 2014 and 2016.

“We can’t allow our banks to be laundromats for cartel cash,” said U.S. Attorney Robert Brewer. “Bank employees who launder drug money for traffickers will face prosecution and prison.”

“Today’s conviction shows the dedication and depth of the FBI’s efforts to dismantle money laundering organizations,” said Suzanne Turner, FBI Acting Special Agent in Charge of the San Diego Field Office.  “With our law enforcement partners, we will continue to strike at the heart of narcotics trafficking by pursuing each and every member of money laundering organizations who feed the proceeds of illegal and dangerous drug trafficking back to the cartels.”

According to court documents, the money laundering organization recruited individuals to serve as funnel account holders to open personal bank accounts at Wells Fargo Bank and other U.S. banks.  Figueroa, as a personal banker with Wells Fargo, admitted in his plea agreement that he knowingly opened personal bank accounts at Wells Fargo for the funnel account holders, knowing that those personal accounts would be used to launder funds to Mexico.

Other members of the money laundering organization, known as couriers, travelled to Los Angeles, Chicago, Charlotte, Boston, New Jersey, and New York City to pick up bulk cash narcotics proceeds that ranged from thousands to hundreds of thousands of dollars in narcotics proceeds. The couriers made contact with individuals holding the bulk cash in private residences or public places such as parking lots and retail stores.  The cash was typically concealed in shopping bags, duffel bags or shoeboxes. 

 Once in possession of the money, the couriers deposited the bulk cash in increments of $22,000 to $45,000 into the funnel bank accounts at Wells Fargo Bank and other U.S. banks controlled by the money laundering organization.  The funds were then wire transferred from the funnel accounts to a series of Mexico based shell companies operated by the money laundering organization.  Figueroa himself made multiple wire transfers from the funnel accounts knowing that the funds were from unlawful activity. Once in Mexico, the funds were transferred to representatives of the Sinaloa Cartel.  

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. Attorney Blanca Quintero.

DEFENDANT                                   Case Number: 17CR-2203-WQH

Luis Fernando Figueroa                      Age:  30                      Tijuana, Mexico

SUMMARY OF CHARGES

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

Criminal Forfeiture (18 U.S.C. 981(a)(1)(C), 18 U.S.C. 982(a)(1), 28 U.S.C. 2461(c))

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

AGENCY

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

IRS Criminal Investigations

El Departamento de Justicia acusó hoy a un hombre de California de delitos de odio, entre ellos el asesinato de una persona y el intento de asesinato de otros 53 más, por sus acciones en el tiroteo del 27 de abril en la Sinagoga Chabad de Poway en California. El Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband, el Fiscal Federal para el Distrito Sur de California, Robert S. Brewer, Jr. y la Agente Especial Encargada en funciones del FBI en San Diego, Suzanne Turner, emitieron el anuncio.

«Nadie en este país debe ser víctima de violencia, lesiones o muerte por ser quién es o por sus creencias religiosas», declaró el Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband. «El Departamento enjuiciará activamente a individuos que cometan un delito de odio o acto de terrorismo doméstico y seguiremos colaborando con nuestras agencias asociadas del orden público estatales y locales para que se haga justicia ante cualquier persona que contravenga los derechos civiles de los estadounidenses».

«No permitiremos la caza de nuestros miembros comunitarios en sus lugares de culto, donde deberían sentirse libres y seguros en el ejercicio de su derecho a la práctica de culto religioso», afirmó el Fiscal Federal Robert S. Brewer, Jr. «Nuestras acciones de hoy son inspiradas por nuestro deseo de lograr justicia para todas las víctimas y sus familias».

«El FBI se ha comprometido firmemente a recopilar todos los hechos y asegurar que se haga justicia en este caso» dijo la Agente Especial Encargada en funciones del FBI en San Diego, Suzanne Turner. «A medida que trabajemos juntos para hacer justicia y comenzar el proceso de recuperación, nuestra comunidad ha demostrado una fortaleza y unidad tremenda en tantos niveles, desde nuestras agencias del orden público asociadas y comunidades religiosas diversas, hasta nuestros ciudadanos y vecinos».

John T. Earnest, de 19 años, vecino de Rancho Peñasquitos, California, fue acusado por denuncia penal de 109 contravenciones relacionadas con delitos de odio.

Según la declaración jurada en apoyo de la denuncia penal, el 27 de abril Earnest condujo a la Sinagoga de Chabad de Poway, donde miembros de la congregación se habían reunido para celebrar un culto religioso en honor al Shabat y el último día de la Pascua judía. Earnest entró en el edificio armado con un rifle de asalto AR-15 completamente cargado con un cargador de 10 cartuchos. Él llevaba puesto una funda en el pecho que contenía cinco cargadores adicionales, cada uno de ellos cargados con 10 cartuchos de municiones. La declaración jurada alega que estando dentro de la Sinagoga de Poway, Earnest abrió fuego y asesinó a una persona y lesionó a otros tres miembros de la congregación, entre ellos un menor de edad. Durante una pausa mientras Earnest intentaba sin éxito recargar su rifle, varios miembros de la congregación, incluyendo un Agente de la Patrulla Fronteriza fuera de servicio, persiguieron a Earnest mientras este huía de la sinagoga. Earnest huyó de la escena en su carro, pero fue posteriormente capturado por las autoridades policiales, quienes descubrieron el AR-15 y cargadores adicionales de munición en el vehículo.

Más aún, la declaración jurada alega que, tras el tiroteo, los investigadores policiales hallaron un manifiesto en línea con el nombre de Earnest. Una copia del manifiesto se encontró posteriormente en el portátil de Earnest durante la ejecución de una orden de registro. En el manifiesto, Earnest hizo muchas declaraciones antisemíticas y antimusulmanes. En concreto, Earnest se refirió a los «judíos» como raza y manifestó que lo único que lamenta es no haber matado a más personas.

Según la declaración jurada, Earnest también confesó en el manifiesto el incendio provocado de una mezquita en Escondido en marzo del 2019. La declaración jurada alega que el 24 de marzo, siete individuos se encontraban dentro de la mezquita cuando olieron gasolina y vieron llamas saliendo de la grieta de una de las puertas de la mezquita.  Los individuos apagaron el incendio, pero solo después de que el incendio hubiera dañado el exterior de la mezquita. La declaración jurada alega además que el vídeo de vigilancia muestra a un sospechoso llegando a la mezquita en el mismo tipo de vehículo que Earnest empleó para realizar el ataque en la sinagoga. El acusado supuestamente alegó en su manifiesto que se había inspirado por el tiroteo en la sinagoga Tree of Life en Pittsburgh, Pensilvania y los tiroteos recientes en dos mezquitas en Nueva Zelanda.

En concreto, la denuncia le acusa de 109 contravenciones relacionadas con delitos de odio:

• 54 cargos de obstrucción al libre ejercicio de creencias religiosas con el uso de un arma peligrosa, lo que resultó en muerte, lesiones corporales e intentos de asesinato;

• 54 cargos de vulneración de la ley de Prevención de Delitos de Odio de Matthew Shepard y James Byrd Jr.;
• Un cargo de daño a una propiedad religiosa por el uso de fuego en relación al intento de provocar un incendio en la mezquita.  

Los Fiscales Federales Auxiliares Shane Harrigan, Peter Ko, John Parmley y Caroline Han, juntos con la Abogada de Litigios Rose Gibson, de la División de Derechos Civiles, están enjuiciando este caso en nombre del Gobierno. El FBI, la Oficina del Sheriff de San Diego y la Agencia de Control de Bebidas Alcohólicas, Tabaco, Armas de Fuego y Explosivos llevaron a cabo la investigación.

Earnest se enfrenta a la máxima pena posible de muerte o cadena perpetua. Actualmente se encuentra bajo custodia estatal a la espera de cargos penales estatales.

Todos los cargos y la denuncia son meramente alegaciones, y al acusado se lo considera inocente mientras no se pruebe su culpabilidad ante un tribunal de justicia.

Anexo(s): 

Download Earnest Complaint and Affidavit

The Department of Justice today charged a California man with federal hate crimes, including the murder of one person and the attempted murder of 53 others, for his actions during the April 27 shooting at the Chabad of Poway Synagogue in California. Assistant Attorney General Eric Dreiband for the Civil Rights Division, U.S. Attorney Robert S. Brewer, Jr. for the Southern District of California, and San Diego FBI Acting Special Agent in Charge Suzanne Turner made the announcement.

“No one in this country should be subjected to violence, injury, or death for who they are or for their religious beliefs,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Department will vigorously prosecute those who commit hate crimes and acts of domestic terrorism, and we will continue to work with our state and local partners to bring to justice anyone who violates the civil rights of Americans.”

“We will not allow our community members to be hunted in their houses of worship, where they should feel free and safe to exercise their right to practice their religion,” said U.S. Attorney Robert S. Brewer, Jr. “Our actions today are inspired by our desire to achieve justice for all of the victims and their families.”

"The FBI is steadfast in our commitment to gather all the facts and ensure justice is served in this case," said FBI San Diego Acting Special Agent in Charge Suzanne Turner. "As we work together to bring justice and begin the healing process, our community has shown extraordinary strength and unity on so many levels-from our law enforcement partners, diverse faith-based communities, and extending to our citizens and neighbors."

John T. Earnest, 19, of Rancho Peñasquitos, California, was charged by criminal complaint with 109 hate crimes violations.

According to the affidavit in support of the criminal complaint, on April 27, Earnest drove to the Chabad of Poway Synagogue, where members of the congregation were gathered to engage in religious worship celebrating Shabat and last day of Passover. Earnest entered the building armed with an AR-15 style semi-automatic rifle that was fully loaded with a 10-round magazine. He wore a chest rig, which contained five additional magazines, each loaded with 10 rounds of ammunition. The affidavit alleges that while inside the Poway Synagogue, Earnest opened fire, killing one person and injuring three other members of the congregation, including a juvenile. During a pause when Earnest unsuccessfully attempted to reload his firearm, several congregant members, including an off-duty Border Patrol Agent, chased Earnest as he fled from the Synagogue. Earnest fled the scene in his car, but was subsequently apprehended by law enforcement authorities who discovered the AR-15 and additional magazines of ammunition in his car.

The affidavit further alleges that after the shooting, law enforcement investigators found a manifesto online bearing Earnest’s name. A copy of the mainfesto was later found on Earnest’s laptop during the execution of a search warrant. In the manifesto, Earnest made many anti-Semitic and anti-Muslim statements. Specifically, Earnest referred to “Jews” as a race, and he stated his only regret was that he did not kill more people.

According to the affidavit, Earnest also admitted in the manifesto to the arson of an Escondido Mosque in March 2019. The affidavit alleges that on March 24, seven individuals were inside the mosque when they smelled gasoline and saw flames coming through the crack of one of the mosque’s doors. The individuals put out the fire, but not before the fire had damaged the exterior of the mosque. The affidavit further alleges that surveillance video showed a suspect arriving at the mosque in the same type of vehicle Earnest used in committing the attack on the Synagogue. The defendant allegedly claimed in his manifesto that he was inspired by the Tree of Life synagogue shooting in Pittsburgh, Pennsylvania, and the recent shootings at two mosques in New Zealand.

Specifically, the complaint charges 109 hate crimes violations:

• 54 counts of obstruction of free exercise of religious beliefs using a dangerous weapon, resulting in death, bodily injury, and attempts to kill; 

• 54 counts of violating the Mathew Shepard and James Byrd Jr. Hate Crimes Prevention Act;
• One count of damage to religious property by use of fire in relation to the attempted arson of the mosque.

Assistant United States Attorneys Shane Harrigan, Peter Ko, John Parmley, and Caroline Han, along with Trial Attorney Rose Gibson of the Civil Rights Division, are prosecuting this case on behalf of the government. The FBI, San Diego Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation.

Earnest faces a maximum possible penalty of death, or life without parole. He is currently in state custody pending state criminal charges.

All charges and the complaint are merely allegations and the defendant is presumed innocent unless proven guilty in a court of law.

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

NEWS RELEASE SUMMARY – May 9, 2019

SAN DIEGO – Leopoldo Aguilera, a former Wells Fargo personal banker, appeared in federal court today in connection with charges that he used his position to launder millions of dollars for Mexico-based drug traffickers.

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

At today’s hearing, U.S. Magistrate Judge Jill L. Burkhardt allowed the defendant to be released on a $40,000 bond secured by two financially responsible adults. The judge also ordered that the defendant be subject to home detention and GPS monitoring.

According to the complaint, Aguilera abused his position of trust as a personal banker with Wells Fargo Bank and aided the money laundering organization by wire transferring millions of dollars to Mexico.  The FBI’s investigation linked these funds to the sale of narcotics, specifically the sale of multi-kilogram amounts of fentanyl in the Midwest. 

According to the complaint, with the knowledge of the money laundering organization’s structure, scheme, and objectives, Aguilera performed a litany of financial transactions for the criminal organization. For instance, he opened 26 bank accounts at Wells Fargo Bank and executed 229 international wire transfers totaling $7.4 million. 

Of the 26 bank accounts that Aguilera opened for the organization, 11 of them were created by Aguilera with 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 11 fictitious bank accounts.  These fictitious bank accounts alone were used by the criminal organization to wire transfer a total of $3.1 million to Mexico, the vast majority of those wire transfers conducted by Aguilera himself.   

As part of the investigation, the FBI identified and seized 17 bank accounts that belonged to the organization and which contained at least $160,000 at the time of the seizure of the funds.

The investigation found that Aguilera had received approximately $4,000 in cash payments from the criminal organization in exchange for his participation in the scheme. 

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-MJ-1801-JLB

Leopoldo Aguilera                                                      Age: 57                       Tijuana, Mexico

SUMMARY OF CHARGES

Bank Fraud (18 U.S.C. 1344)

Maximum Penalties: Thirty years in prison, $1 million 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. Attorneys Shane Harrigan (619) 546-6981, Caroline Han (619) 546-6968  and Peter Ko (619) 546-7359  

NEWS RELEASE SUMMARY – May 9, 2019

SAN DIEGO – The U.S. Department of Justice today charged a Rancho Peñasquitos man with federal hate crimes, including the murder of one person and the attempted murder of 53 others, for his actions during the April 27 shooting at the Chabad of Poway Synagogue.

John T. Earnest, 19, was charged by criminal complaint with 109 hate crimes violations. The complaint alleges that these crimes were motivated by hatred toward the Jewish community.

“We will not allow our community members to be hunted in their houses of worship, where they should feel free and safe to exercise their right to practice their religion,” said U.S. Attorney Robert S. Brewer, Jr. “Our actions today are inspired by our desire to achieve justice for all of the victims and their families.”

“No one in this country should be subjected to unlawful violence, injury, or death for who they are or for their religious beliefs,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Department will vigorously prosecute those who commit hate crimes and acts of domestic terrorism, and we will continue to work with our state and local partners to bring to justice anyone who violates the civil rights of Americans.”

“The FBI is steadfast in our commitment to gather all the facts and ensure justice is served in this case,” said FBI San Diego Acting Special Agent in Charge Suzanne Turner. “As we work together to bring justice and begin the healing process, our community has shown extraordinary strength and unity on so many levels - from our law enforcement partners, diverse faith-based communities, and extending to our citizens and neighbors.”

According to the affidavit in support of the criminal complaint, on April 27, Earnest drove to the Chabad of Poway Synagogue, where members of the congregation were gathered to engage in religious worship celebrating Shabat and last day of Passover. Earnest entered the building armed with an AR-15 style semi-automatic rifle that was fully loaded with a 10-round magazine.

He wore a chest rig which contained five additional magazines, each loaded with ten rounds of ammunition. The affidavit alleges that while inside the Poway Synagogue, Earnest opened fire, killing one person and injuring three other members of the congregation, including a juvenile. During a pause when Earnest unsuccessfully attempted to reload his firearm, several congregant members, including an off-duty Border Patrol Agent, chased Earnest as he fled from the Synagogue. Earnest fled the scene in his car, but was subsequently apprehended by law enforcement authorities who discovered the AR-15 and additional magazines of ammunition in his car.

The affidavit further alleges that after the shooting, law enforcement investigators found a manifesto online bearing Earnest’s name. A copy of the mainfesto was later found on Earnest’s laptop during the execution of a search warrant. In the manifesto, Earnest made many anti-Semitic and anti-Muslim statements. Specifically, Earnest referred to “Jews” as a race, and he stated his only regret was that he did not kill more people.

According to the affidavit, Earnest also admitted in the manifesto to the arson of an Escondido Mosque in March 2019. The affidavit alleges that on March 24, 2019, seven individuals were inside the mosque when they smelled gasoline and saw flames coming through the crack of one of the mosque’s doors. The individuals put out the fire, but not before the fire had damaged the exterior of the mosque. The affidavit further alleges that surveillance video showed a suspect arriving at the mosque in the same type of vehicle Earnest used in committing the attack on the Synagogue. The defendant allegedly claimed in his manifesto that he was inspired by the Tree of Life synagogue shooting in Pittsburgh, Pennsylvania, and the recent shootings at two mosques in New Zealand.

Specifically, the complaint charges 109 hate crimes violations:

• 54 counts of obstruction of free exercise of religious beliefs using a dangerous weapon, resulting in death, bodily injury, and attempts to kill;
• 54 counts of hate crimes in relation to the shooting in violation of the Mathew Shepard and James Byrd Jr. Hate Crimes Prevention Act; and,
• One count of damage to religious property by use of fire in relation to the attempted arson of the mosque.

When hate crimes are intended to intimidate and coerce a civilian population, they may also be considered acts of domestic terrorism. 

Assistant United States Attorneys Shane Harrigan, Peter Ko, John Parmley, and Caroline Han, along with Trial Attorney Rose Gibson of the Civil Rights Division, are prosecuting this case on behalf of the government. The FBI, San Diego Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigations.

Earnest faces a maximum possible penalty of death, or life without parole. He is currently in state custody pending state criminal charges.

The defendant is expected to make his first appearance in federal court on Tuesday May 14 at 2 p.m. before U.S. Magistrate Judge Michael Berg.

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

DEFENDANT                                               Case Number 19MJ1900                                         

John T. Earnest                                               Age: 19                                   San Diego, CA

SUMMARY OF CHARGES

Obstruction of Free Exercise of Religious Beliefs Resulting in Death and Bodily Injury; and Involving Attempt to Kill, Use of a Dangerous Weapon - 18 U.S.C. §§  247(a)(2), 247(d)(1) and 247(d)(3)

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

Hate Crime Acts – 18 U.S.C. § 249(a)(1)(B)(i)(ii)

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

Damage to Religious Real Property Involving Use of a Dangerous Weapon or Fire – 18 U.S.C. §§ 247(a)(1), 247 (d)(3) 

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

AGENCIES

Federal Bureau of Investigation

San Diego County Sheriff’s Department

San Diego Police Department

Bureau of Alcohol, Tobacco, Firearms and Explosives

San Diego County District Attorney’s Office

Escondido Police Department

 

 

Assistant U.S. Attorney Andrew J. Galvin (619) 546-9721

NEWS RELEASE SUMMARY – May 6, 2019

SAN DIEGO – Ariel Boiteux, an Argentine national who masterminded an international extortion scheme against hundreds of people seeking romance through witchcraft and magic spells, was sentenced in federal court today to the maximum sentence - two years in prison.

According to court documents, targets of the scheme were directed to record themselves performing sexually explicit rituals to be used in casting love spells. Boiteux instead threatened to post the embarrassing videos on social media unless the clients paid large sums of money.

“This was a despicable scheme that preyed upon people who put their trust in a phony,” said U.S. Attorney Robert Brewer. “This defendant used the vulnerability of the lovelorn to humiliate and extort them, and for that he will pay a price.”

“I commend the dedicated work by our cybercrime experts who worked diligently to bring Boiteux, who dangerously preyed on others for his own financial gain, to justice,” said David Shaw, Special Agent in Charge for Homeland Security Investigations in San Diego. “This investigation underscores our commitment to keep pace with combatting criminal activity across all borders, including the internet.”

According to his plea agreement, Boiteux and several associates – operating out of Paraguay under the business name Amarres Inmediatos – offered to perform rituals that could improve one’s romantic relationships.  Boiteux advertised these services on Facebook, Instagram, and MercadoLibre. The advertised services included casting spells designed to foster romantic relationships.

Clients who contacted Amarres Inmediatos soon learned that the rituals were performed remotely rather than in person. Clients were provided with a list of items to purchase, which typically included candles, alcohol, vegetables, and photographs. The ritual called for the client to drink alcohol, recite sexually explicit incantations, and perform sexual acts, all while recording the ritual. The client would then send the recordings of the ritual back to Boiteux and his associates, who would threaten to publicize the sexually explicit recordings unless the client paid an amount that far exceeded the initial price agreed upon for the ritual.  In his plea agreement, Boiteux admitted to researching the clients to see who would be susceptible to extortion. 

In February 2017, the plea agreement said, Boiteux obtained sensitive recordings of a client performing a ritual. The defendant researched the client’s background and determined that she was a well-connected public figure with access to significant financial resources. Boiteux and his associates then contacted the client and threatened to publicize the recordings unless she paid more than $250,000.

According to the plea agreement, in the fall of 2017, an undercover agent from Homeland Security Investigations called a phone number on the Amarres Inmediatos website and offered to purchase recordings of another victim, portions of which had been uploaded to publicly-available websites in an attempt to extort that victim.  Boiteux agreed to sell the recordings for thousands of dollars and instructed the undercover agent to send a money transfer through Western Union.  After the agent sent the money transfer, Paraguayan law enforcement officers waited at a Western Union in Ciudad del Este, Paraguay where Boiteux had picked up a previous money transfer. As expected, Boiteux arrived a short time later to pick up the transfer, but instead was arrested by Paraguayan officers.  Boiteux was extradited to San Diego in July 2018.

DEFENDANT:                                             Case Number 18-CR-2025-H

Ariel Boiteux                                                  Age:    31                                San Juan, Argentina

SUMMARY OF CHARGES

Foreign Transmission of an Extortionate Threat – Title 18, U.S.C., Section 875

Maximum penalty: 2 years’ imprisonment and $250,000 fine

AGENCY

Homeland Security Investigations

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

NEWS RELEASE SUMMARY – April 26, 2019

SAN DIEGO – Jonny Ngo, the former president and chief executive officer of NL Technology, LLC, was arraigned today on a 21-count indictment charging him with wire fraud, mail fraud and money laundering in connection with operating a $65 million investment fraud. The hearing took place in federal court before U.S. Magistrate Judge Mitchell D. Dembin after the indictment was unsealed.       

According to the indictment, Ngo induced his victims to invest funds in various short-term investment contracts by making false representations, including that: (a) investor money would be used to fund wholesale purchase orders of smartphone screens and other electronic goods; (b) NL Technology was a regular supplier of smartphone screens to a number of buyers, including two buyers who each ordered approximately $2 million of product from NL Technology; (c) all wholesale orders funded by investor money was pre-purchased by NL Technology clients; and (d) the quality of the products and safety of investor funds used to purchase the products was guaranteed by a third-party escrow company. 

The indictment further alleges that Ngo created counterfeit invoices falsely indicating that NL Technology had substantial purchase orders from alleged wholesale companies. The indictment alleges that Ngo also provided false financial statements purportedly certified by an accountant showing NL Technology earned income from its wholesale business totaling $12.5 million in 2015 and $15.4 million in 2016.  Moreover, as alleged, Ngo fabricated bank statements or screenshots from bank statements held in the name of NL Technology with individual line items altered to appear as legitimate wholesale business transactions.  Lastly, Ngo created false checks from wholesale companies allegedly doing business with NL Technology.   

To further his investment fraud, Ngo and others allegedly told investors that they could roll over their investments into future investment contracts with NL Technology, when in fact no such future investments were possible.  Also, Ngo allegedly lulled investors about the continued viability of NL Technology through materially false representations, including that NL Technology had an outstanding purchase order from a smartphone repair company for approximately $300,000, when in fact, no such order existed. 

Instead of investing the funds in the business, the indictment alleges that Ngo converted investor funds to his own personal use and benefit by spending the money on a home, luxury cars and gambling.  As a result of his investment fraud, it is alleged that Ngo induced investors to part with more than $60 million, and ultimately caused millions of dollars in losses.

“Investment fraud has a long-lasting and devastating effect on victims in our community,” said U.S. Attorney Robert S. Brewer, Jr. “When these schemes are brought to our attention, we will work collaboratively with our law enforcement partners to unravel the fraud and hold those responsible for profiting from it.”

FBI Acting Special Agent in Charge Suzanne Turner said:  “Mr. Ngo's alleged technology business scheme was, in fact, a plan to deceive investors, luring them into a false sense of security about their investments, falsifying documents to cover the lies and stealing the funds for personal use. The FBI will continue to identify and investigate those who defraud investors. We ask anyone who has information related to investor fraud submit a tip at https://tips.fbi.gov/.”

U.S. Postal Inspection Service Inspector in Charge Nichole Cooper stated: “Mr. Ngo is accused of a scheme that separated millions of dollars from consumers who believed they were making legitimate investments.  However, those who commit crimes like this one fail to realize that Postal Inspectors and our federal law enforcement partners will discover these greedy schemes and will bring the culprits to justice for their crimes against unsuspecting investors.”

The Government moved to detain the defendant as a risk of flight.  Judge Dembin set a detention hearing for Tuesday, April 30, 2019 at 9:30 a.m. before U.S. Magistrate Judge Ruben B. Brooks. The defendant will remain in custody until the hearing. Judge Dembin also scheduled a motion hearing/trial setting for June 7, 2019 at 11 a.m. before U.S. District Judge Jeffrey T. Miller.

DEFENDANT                                                           Case Number: 19CR1391-JM                                

Jonny Ngo                               Age: 32                       San Diego, CA

SUMMARY OF CHARGES

Title 18, United States Code, Section 1343 – Wire Fraud

Maximum Penalties: 20 years’ in prison, a fine of $250,000, three years of supervised release

Title 18, United States Code, Section 1341 – Mail Fraud

Maximum Penalties: 20 years’ in prison, a fine of $250,000, three years of supervised release

Title 18, United States Code, Section 1957 – Money Laundering

Maximum Penalties: 10 years’ in prison, a fine of $250,000, three years of supervised release

AGENCIES

Federal Bureau of Investigation

United States Postal Inspection Service

An indictment itself is not evidence that the defendant committed the crimes charged.  The defendant is presumed innocent until the Government meets its burden in court of proving guilt beyond a reasonable doubt.