Southern District of California

Assistant U.S. Attorneys Emily W. Allen (619) 546-9738 and Andrew P. Young (619) 546-7981

NEWS RELEASE SUMMARY – April 25, 2019

SAN DIEGO – Financial executive Peter Cash Doye was sentenced in federal court today to 15 years in prison for his role as the “driving force” in a massive real estate loan scheme in which he and his co-conspirators stole nearly $50 million dollars from San Diego residents and lenders.

His co-defendant, Raquel Reid, a notary public and real estate broker, was previously sentenced to 65 months for her role in the fraud. The court also ordered Doye and Reid to pay more than $43 million in restitution to the victims.

During the sentencing hearing, U.S. District Judge William Q. Hayes described the defendant as “cold blooded” and the “driving force” behind an “overwhelmingly selfish act” that was motivated by “pure unmitigated greed.” He scolded the defendant for having a “callous attitude” toward his victims, and remarked about his testimony during trial. “After you said your name, I’m hard-pressed to remember anything you said that was truthful,” Judge Hayes said.

The pair were indicted on September 19, 2017 on charges of conspiracy to commit wire fraud, wire fraud, mail fraud, and aggravated identity theft.  Reid was also charged with lying to a federal agent.  On November 20, 2018, after a two-week trial, a jury returned a guilty verdict on all charges against both defendants.  According to the indictment and the evidence introduced at trial, the defendants defrauded lenders into making enormous loans against four multi-million dollar mansions in La Jolla and Del Mar, then used forged documents to make it appear that the loans had been paid off – thereby enabling them to secure additional loans from new lenders who believed the mansions were owned “free and clear.”

Doye, a senior executive at the real estate investment firms Conix, Inc. and Variant Commercial Real Estate (“VCRE”), negotiated the financing from unsuspecting lenders and investors based on a host of lies about the collateral used to secure the loans.  To pull off the scam, Doye, Reid, and their co-conspirators created forged real estate lien “releases” and recorded fraudulent records at the San Diego County Recorder’s Office, complicating the chain of title for these homes.  Reid notarized the forged documents, helping to make the fraudulent paperwork appear authentic.

Doye’s business partner, Courtland Gettel, and Arizona attorney Jeffrey Greenberg, who testified at the trial on behalf of the government, previously pleaded guilty to participating in the scheme and are serving sentences of 135 and 51 months, respectively. Gettel and Greenberg were also ordered to pay more than $43 million in restitution to victims, and to forfeit the proceeds of the crime.  Gettel was the owner of Conix and VCRE, which refurbished single-family homes, purchased distressed debt, and purchased and refurbished commercial real estate projects.

During trial, the government proved that Gettel, Greenberg, and Doye acquired the high-end homes in La Jolla and Del Mar by claiming they would be used as luxury rentals and investment properties—although in fact, Gettel and Doye lived in the properties along with their families. When they needed money to fund other business deals, Gettel and Doye began negotiating with new lenders, pretending that the first loans never existed or had already been paid off.  Greenberg admitted that he used his expertise as a lawyer to generate and record fraudulent records, making it appear that prior loans were paid off and helping to close the fraudulent deals.

In late 2014, the lenders began to uncover the fraud and learn that their secured interests in the properties were worthless.  In response to questions from these lenders, Doye, Reid and Gettel denied knowing anything about the fraudulent loans, and created yet more fraudulent documents to cover their tracks. For example, Reid destroyed her notary book and cut up her notary stamp, and then falsely reported to the California Secretary of State that her book had been lost.

“This crime was a colossal $50 million swindle by a greedy, brazen thief who squandered the stolen money on lavish parties in Las Vegas, penthouse apartments, private jets and abundant drug use,” said U.S. Attorney Robert Brewer. “The defendant’s extravagant lifestyle was funded by the hardships of his victims, who suffered health problems, emotional stress, financial uncertainty and strain on relationships. This sentence underscores the significant harm victims to and the integrity of our financial system, and is a testament to the hard work of FBI agents and prosecutors Emily Allen and Andrew Young.”

“Today, final justice has been served in this multi-million dollar loan fraud scheme. All four defendants, including Doye, who was sentenced to 15 years in custody today, are no longer able to perpetrate their deceit and lies to fulfill their personal greed,” said FBI Acting Special Agent in Charge Suzanne Turner.   “The FBI remains committed to pursuing fraud schemes that erode the integrity of our financial system."

DEFENDANTS, 17CR2897-WQH

Peter Cash Doye                                             Age: 43                       San Diego, CA

Raquel Reid                                                    Age: 40                       San Diego, CA

Count One (both defendants): Wire and Mail Fraud Conspiracy, in violation of 18 U.S.C. § 1349

Maximum Penalties: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture

Counts Two through Six (Doye only; both defendants as to Count Three): Wire Fraud, in violation of 18 U.S.C. § 1343

Maximum Penalties as to each count: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture

Counts Seven through Nine (Doye only as to Count Seven, both defendants as to Counts Eight and Nine): Mail Fraud, in violation of 18 U.S.C. § 1341

Maximum Penalties as to each count: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture

Counts Ten and Eleven (both defendants): Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A

Maximum Penalties: mandatory 2 years’ imprisonment, consecutive to any other term of imprisonment, $250,000 fine, $100 special assessment, restitution.

Count Twelve (Reid only): False Statements to Federal Agents, in violation of 18 U.S.C. § 1001

Maximum Penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.

DEFENDANTS PREVIOUSLY CHARGED

Jeffrey Greenberg, 16CR1076-WQH and 1077-WQH          Age: 67           Tucson, AZ

Courtland Gettel, 16CR1099-WQH                                       Age: 43           Coronado, CA

AGENCY

Federal Bureau of Investigation

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

NEWS RELEASE SUMMARY – April 24, 2019

SAN DIEGO – Drug dealer Trevon Antone Lucas pleaded guilty in federal court today, admitting that he sold pills containing fentanyl to a La Jolla man, causing his fatal overdose last year.  

Lucas, a resident of Highland, California, admitted in his plea agreement that he posted online advertisements for the illegal sale of prescription pills. The victim responded to one of Lucas’ posts in 2017 and began purchasing various prescription pills from him.

According to his plea agreement, on the evening of June 29, 2018, Lucas met the victim and sold him nine “blues,” a slang term for prescription oxycodone pills, for $240.  The “blues” purchased from Lucas were counterfeit and contained deadly fentanyl.  The victim was found dead in his room the following morning.      

“This is what the deadly fentanyl crisis looks like at Ground Zero,” said U.S. Attorney Robert Brewer. “It’s not some far off problem. It is a mother finding her son dead on the floor after he swallowed a substance so dangerous that in its purest form, even a tiny amount touching the skin can be deadly. Those who sell fentanyl resulting in death will be held accountable for their callous and reckless disregard for human life.”

Text messages between the victim and Lucas indicated that Lucas sold the counterfeit pills laced with fentanyl that caused the fatal overdose. Three other individuals, Cenlair Marie Fields, Kevin Vandale Chandler and Donovan Adontas Carter were  charged in the same indictment with conspiring with Lucas to distribute prescription hydrocodone pills.  All three have since pleaded guilty. 

Lucas is scheduled to be sentenced on July 19, 2019 before U.S. District Judge Cathy Ann Bencivengo. 

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

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

In July 2018, Narcotics Task Force Team 10 was created to address drug overdose deaths in San Diego County.  Team 10’s first investigation was the fentanyl drug overdose of this La Jolla man on June 30, 2018.  The victim was 38 years old and he left behind his mother and brother.

“These types of investigations are unique and are changing perceptions about drug use and addiction in the law enforcement community,” said DEA Special Agent in Charge Karen Flowers. “Team 10 is bearing witness to the carnage and despair that each drug overdose victim leaves behind: families devastated, friends grief-stricken and the future of loved ones ripped away in an instant.  That alone is one of the hardest things in life to understand and accept.

“Today’s plea deal sends a powerful message to anyone seeking to profit from selling drugs,” Flowers said.  “If your client dies, the law will come for you and you will be prosecuted accordingly.  These men made choices that deprived them of their hopes and dreams in their futures. Trevon Lucas is 23 years old and he just pleaded guilty to a crime that requires a 20-year sentence in federal prison. For Team 10 investigators and our community, today is bittersweet.  Justice was served.”

The power to make a difference starts at home, beginning with returning unused, unwanted and expired medications susceptible to theft and abuse. This Saturday, April 27th, the DEA is providing a free and anonymous service to “Take Back” prescription drugs.  There will be over 6,000 DEA collection sites nationally.  DEA Take Back Day provides an actionable way for any American to step up and help combat this crisis by simply cleaning out their medicine cabinet.  To find a location near you, go to www.DEATAKEBACK.com.  Keep them safe.  Clean them out.  Take them back.

DEFENDANTS                                            Case Number 18cr4224-CAB         

Trevon Antone Lucas                                     Age: 23                                   Highland, CA

SUMMARY OF CHARGES

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

Maximum Penalty: Mandatory minimum 20 years’ imprisonment up to life

AGENCIES

Drug Enforcement Administration

San Diego Police Department

Homeland Security Investigations

California Department of Health Care Services

Federal Bureau of Investigation

San Diego County District Attorney’s Office

 

A Culiacan, Mexico man pleaded guilty to international money laundering in connection with his operation of a currency exchange house that received the proceeds of multi-kilogram quantities of cocaine, methamphetamine and heroin smuggled into the United States by the Sinaloa Cartel, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Robert S. Brewer Jr. of the Southern District of California. 

Gibran Rodriguez-Mejia, 31, was extradited from Mexico to San Diego in September 2018, and is the fifth Mexican-based defendant in this case to enter a guilty plea, doing so before U.S. Magistrate Judge Mitchell D. Dembin.  Rodriguez-Mejia will be sentenced on July 8, 2019 before U.S. District Judge Roger T. Benitez. 

Through his plea agreement, Rodriguez-Mejia admitted to laundering $3.5 million in drug proceeds.  He coordinated with couriers, primarily located in Southern California, who smuggled the bulk of U.S. currency from the United States to Mexico.  Rodriguez-Mejia also admitted that he arranged for currency to be smuggled to an exchange house in Tijuana, Mexico owned and operated by co-defendant Cesar Hernandez-Martinez, who pleaded guilty on April 4, 2019 and will be sentenced on July 8, 2019.  After the money was converted to Mexican pesos, Rodriguez-Mejia provided financial accounts in Mexico into which the money was deposited for the benefit of the Mexican-based cartel drug traffickers.

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

Omar Ayon-Diaz, Osvaldo Contreras-Arriaga and Joel Acedo-Ojeda have also pleaded guilty in this case and have been sentenced to 120 months, 132 months and 135 months in prison, respectively.

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Diego Field Office conducted the investigation.  Senior Trial Counsel Mark A. Irish of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Lawrence A. Casper of the Southern District of California prosecuted the case.  The Justice Department’s Office of International Affairs provided significant support with the defendant’s extradition.  The U.S. Attorney’s Office is working together in this matter with the Criminal Division’s Money Laundering and Asset Recovery Section.

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

NEWS RELEASE SUMMARY – April 18, 2019

SAN DIEGO – Gibran Rodriguez-Mejia of Culiacan, Sinaloa, Mexico, pleaded guilty today to international money laundering in connection with his operation of a currency exchange house that received the proceeds of multi-kilogram quantities of cocaine, methamphetamine and heroin smuggled into the United States by the Sinaloa Cartel. Rodriguez, who was extradited from Mexico to San Diego in September 2018, is the fifth defendant in this case to enter a guilty plea.    

Through his plea agreement, Rodriguez admitted to laundering $3.5 million in drug proceeds. He coordinated with couriers, primarily located in Southern California, who smuggled the bulk U.S. currency from the United States to Mexico.  Rodriguez also admitted that he arranged for currency to be smuggled to an exchange house in Tijuana, Mexico owned and operated by co-defendant Cesar Hernandez-Martinez, who also recently entered a guilty plea in the case.  After the money was converted to Mexican pesos, Mejia provided financial accounts in Mexico into which the money was deposited for the benefit of the Mexican-based cartel drug traffickers.

In addition to the five defendants in this case, approximately twenty other individuals have entered guilty pleas and been sentenced previously in related cases.

Rodriguez pleaded guilty before U.S. Magistrate Judge Mitchell D. Dembin. Rodriguez will be sentenced on July 8 at 9 a.m. before U.S. District Judge Roger T. Benitez.  Rodriguez faces up to 20 years in prison and a maximum fine of $7 million (twice the value of the funds involved).  Three other defendants have previously entered guilty pleas in this case and been sentenced (Omar Ayon-Diaz; Osvaldo Contreras-Arriaga; and Joel Acedo-Ojeda) and another (Cesar Hernandez-Martinez) entered his guilty plea on April 4, 2019 and will be sentenced on July 8, 2019 at 9:00 a.m. before Judge Benitez.

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Diego Field Office conducted the investigation. Assistant U.S. Attorney Lawrence A. Casper of the Southern District of California  and Senior Trial Counsel Mark A. Irish of the Criminal Division’s Money Laundering and Asset Recovery Section prosecuted the case.  The Justice Department’s Office of International Affairs provided significant support with the defendant’s extradition. The U.S. Attorney’s Office is working together in this matter with the Criminal Division’s Money Laundering and Asset Recovery Section.

DEFENDANT                                   Case Number 15-cr-950                                                                   

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

SUMMARY OF CHARGE

Hernandez-Martinez

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

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

Prior Guilty Pleas and Sentences

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

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

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

Cesar Hernandez-Martinez: Pleaded guilty to Conspiracy to Commit International Money Laundering, in violation of Title 18, U.S.C., Sec. 1956(a)(2)(B)(i) and (h); will be sentenced on July 8, 2019.

INVESTIGATING AGENCY

Homeland Security Investigations

 

Assistant U.S. Attorney Kevin Mokhtari (619) 546-8402, Special Assistant U.S. Attorney Ari Fitzwater (619) 546-8756, Special Assistant U.S. Attorney Emily Gibbons (619) 546-8419

NEWS RELEASE SUMMARY – April 17, 2019

SAN DIEGO – Three South American men were convicted by a federal jury late yesterday of trafficking approximately 1,230 kilograms (2,706 pounds) of cocaine worth more than $28 million on the high seas. The verdict came after a weeklong trial before U.S. District Judge Roger T. Benitez.  

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

As the helicopter closed in, the defendants – Adrian Andres Cortez-Quinonez, Segundo Marcial Dominguez-Caicedo  and Victor Gaspar-Chichande – stopped their go-fast vessel to avoid detection. But as the helicopter circled the vessel, the defendants attempted to evade the helicopter. 

The defendants eventually brought their vessel to a stop when they could not outrun the Coast Guard helicopter and then began jettisoning dozens of bails of cocaine overboard. They took off again, but a U.S. Coast Guard marksman onboard the helicopter disabled the fleeing vessel’s engines with precision. The Coast Guard detained the defendants and recovered the jettisoned cocaine. After the defendants were transported to the United States, agents with the Drug Enforcement Administration continued the investigation.

“The high seas are not a secret freeway for narco-traffickers to cross with impunity,” said U.S. Attorney Robert Brewer. “This verdict is proof that we are watching, and we will take whatever action necessary to prevent these dangerous drugs from hitting our streets. I appreciate the efforts of prosecutors Kevin Mokhtari, Ari Fitzwater and Emily Gibbons and our partners at the Coast Guard and the DEA. Their hard work has led to this outcome.”

“Thanks to the determined efforts of the Stratton’s officers and crew, as well as the helicopter detachment, these smugglers have been brought to justice,” said Eleventh Coast Guard District Commander, Rear Admiral Peter W. Gautier. “This seizure is just one example of the thousands of kilograms of narcotics seized every month by the Coast Guard. The Coast Guard will continue its tireless fight against trafficking of illegal narcotics at sea and the networks that threaten this country.”

“These traffickers attempted to smuggle more than one ton of cocaine into the United States - which would have had a devastating impact on our communities,” said DEA Special Agent in Charge Karen Flowers. “Due to the collaborative efforts of the Coast Guard and DEA, we were able to stop these traffickers and keep these deadly drugs out of our communities.”

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 are scheduled to be sentenced on July 15, 2019 before Judge Benitez.

DEFENDANTS                                                        Case Number 18cr0421                                           

Adrian Andres Cortez-Quinonez                                Age: 24                                               Ecuador

Segundo Marcial Dominguez-Caicedo                       Age: 35                                               Colombia

Victor Gaspar-Chichande                                          Age: 29                                               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)

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

NEWS RELEASE SUMMARY – April 11, 2019

SAN DIEGO – A federal grand jury in San Diego today returned a six-count indictment charging three San Marcos companies, two managers and a technician with various felonies related to tampering with emission control devices on heavy-duty diesel trucks.

Diamond Environmental Services LP, Diamond Maintenance Services, LLC and Diamond Solid Waste, Inc. (collectively “Diamond”) of San Marcos, California, plus owner and manager Arie Eric De Jong III,  manager Warren Van Dam and technician Jorge Leyva Rodriguez of ECM Diesel Programming were charged with conspiring to manipulate the electronic control module (ECM) on Diamond’s fleet of heavy duty diesel trucks.  The alleged manipulation was designed to disable the monitoring system that would otherwise cause the truck to effectively become non-operational if the diesel emissions filter became too dirty with diesel particulates. 

Since model year 2008, EPA regulations required all heavy-duty diesel trucks to be equipped with a computerized system of electronics and sensors that monitored all emission-related engine systems and components.  If a malfunction or problem occurred within the emission system - for example, the diesel particulate filter, or DPF, became dirty with soot that needed to be “regenerated” or burned off - the monitoring system would cause a Malfunction Indicator/Check Engine Light to be illuminated in the truck’s cabin.  If the hardware emission system problem was not resolved, the monitoring system could limit the top speed of the truck to as low as five miles per hour (an effect commonly referred to as “limp mode” or “power reduced mode”), providing an incentive for the truck’s operator to repair the truck.

The indictment alleges that the defendants agreed to reprogram the ECMs to avoid the costs associated with the need to regenerate the diesel particulate filters (DPFs) on the heavy-duty diesel trucks in the fleets operated by defendant Diamond Environmental Services, LP and Diamond Solid Waste Services, Inc., and maintained by Diamond Maintenance Services, LLC.  According to the indictment, employees removed the ECMs from trucks in their fleet and shipped them out of California to be reprogrammed, and, in addition, defendant Jorge Martin Leyva Rodriguez travelled from Mexico to Diamond locations in San Marcos and San Diego to reprogram the ECMs. 

The indictment alleges that, in order to keep trucks operating with DPFs that had not been cleaned by regeneration, employees punched holes through the honeycomb cores of the DPFs on some of the heavy-duty diesel trucks to allow the free flow of air through this portion of the emission system, without filtration. It is further alleged that in order to conceal the fact that the emissions systems on some of the heavy-duty diesel trucks were not operating properly, employees prepared false opacity (smog) test results for such trucks, using an entirely different truck to achieve passing results.  According to the indictment, when the co-conspirators learned that action by the authorities was imminent, defendant Rodriguez returned to the Diamond facilities to reprogram the software of the ECMs on the truck fleet in order to conceal the 2016 alterations.  Defendants Diamond Environmental Services, LP, Arie Eric De Jong III and Jorge Levya Rodriguez are charged with evidence tampering, based on the later alterations to the ECMs.

“We are all the victims of environmental crime,” said U.S. Attorney Robert Brewer. “We aren’t going to allow companies to take shortcuts and pollute the environment.” Brewer praised prosecutor Melanie Pierson and investigators from the FBI and the U.S. Environmental Protection Agency, Criminal Investigation Division, for protecting the public.

San Diego FBI Acting Special Agent in Charge Suzanne Turner noted, “Today’s indictments underscore the FBI’s continued commitment to our law enforcement partners in combatting environmental crime in San Diego County. The alleged activity impacts every citizen and visitor to San Diego by contributing to declining air quality and increasing public exposure to airborne pollutants. The FBI will continue to work diligently to protect the citizens of San Diego County from entities engaged in illegal business practices which result in environmental harm.”

“The defendants have been charged with conspiring to violate the Clean Air Act and tampering with the emissions control equipment on their commercial diesel trucks,” said Special Agent-in-Charge Jay M. Green of EPA’s criminal enforcement program in California. “The alleged crimes would increase air pollution linked to respiratory illnesses and environmental degradation. Today’s indictment serves as a reminder that EPA and our partners are steadfast in our commitment to protect human health and the environment.”

DEFENDANTS                                             Criminal Case No. 18cr5382-GPC

Diamond Environmental Services, LP           Organized: 1997                     San Marcos, California

Diamond Maintenance Services, LLC           Organized: 2004                     San Marcos, California

Diamond Solid Waste Services, Inc.              Incorporated: 2010                  San Marcos, California

Arie Eric De Jong III                                      Age: 52                                   San Marcos, California

Warren L. Van Dam                                       Age: 52                                   San Marcos, California

Jorge Leyva-Rodriguez                                  Age: 51                                   El Centro, California

SUMMARY OF CHARGES

Count 1

Conspiracy to Tamper with Monitoring Devices, 18 U.S.C. § 371

Maximum penalty: Five years in prison, fine of $250,000 ($500,000 for an organization)

Count 2-4 (charging Diamond Environmental Services, LP and De Jong)

Tampering with Monitoring Device, 42 U.S.C. §7413

Maximum Penalty:  Two years in custody and/or $250,000 fine ($500,000 fine for an organization)

Count 5 (charging Diamond Environmental Services, LP; De Jong, Van Dam and Leyva-Rodriguez)

Tampering with Monitoring Device, 42 U.S.C. §7413

Maximum Penalty:  Two years in custody and/or $250,000 fine ($500,000 fine for an organization)

Count 6 (charging Diamond Environmental Services, LP; De Jong and Leyva-Rodriguez)

Evidence Tampering, 18 U.S.C. §1512(c)(1)

Maximum Penalty: Twenty years and/or $250,000 fine

AGENCIES

Federal Bureau of Investigation

U.S. Environmental Protection Agency, Criminal Investigation 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.

Victim Witness Coordinator Polly Montano (619) 546-8921    

NEWS RELEASE SUMMARY – April 8, 2019

SAN DIEGO – National Crime Victims’ Rights Week – a time for law enforcement, prosecutorial agencies, victim advocates and community members to come together and support victims of crime – is April 7-13.

Upholding the rights of victims not only protects victims of crime, but enhances public safety and fosters public confidence in our criminal justice system.  Agencies that participate in this weeklong tribute will acknowledge and honor crime victims nationwide.

The San Diego County Victim Assistance Coordinating Council (VACC) and the United States Attorney’s Office in San Diego invite you to attend the 30th annual Candlelight Tribute for Crime Survivors on Thursday, April 11, 2019 at 5:30 p.m.  The tribute will be held at the San Diego Police Officers’ Association Hall, 8388 Vickers St., San Diego, CA  92111.  The keynote speaker will be U.S. Attorney Robert S. Brewer, Jr. The Tribute is a time to memorialize victims and to hear inspirational words from local law enforcement agencies, victim advocates and personal stories from the victims themselves.

The Tribute is sponsored by the VACC.  VACC is comprised of the following agencies:  Alliance for Community Empowerment; the Crime and Trauma Recovery Program; the District Attorney’s Victim Assistance Program; the Drug Enforcement Administration (DEA) Victim Witness Program; the Federal Bureau of Investigation, Victim Assistance Program; the Center for Mindful Relationships; Mothers Against Drunk Driving (MADD); Mothers with a Message; Parents of Murdered Children; San Diego Police Department Crisis Intervention; San Diego County Sherriff’s Department; the United States Attorney’s Office Victim/ Witness Program; the U.S. Marshals Office; the U.S. Postal Inspection Service; and other victim advocates.

By providing a single, uniform message from these agencies and service providers, we can help increase awareness and improve the assistance provided to all crime victims.

To receive further information about National Crime Victims’ Rights Week, and ideas on how to serve victims in your community please visit www.ovc.gov or www.sdcvacc.com.

 

Assistant U. S. Attorney Robert Ciaffa (619) 546-7748    

NEWS RELEASE SUMMARY – April 8, 2019

SAN DIEGO – Jacob Burrell Campos of Rosarito, Mexico, was sentenced today by U.S. District Judge Marilyn L. Huff to serve two years in prison and forfeit $823,357 in illicit profits for operating an unlicensed money transmitting business in connection with his sale of hundreds of thousands of dollars in Bitcoin to over 1,000 customers throughout the United States.

Burrell, a U.S. citizen, has been in custody without bail since his arrest on August 13, 2018.  He pleaded guilty on October 29, 2018, admitting that he operated a Bitcoin exchange without registering with the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of Treasury, and without implementing the required anti-money laundering safeguards.

According to the plea agreement, Burrell advertised his business on Localbitcoins.com, and communicated with his customers through email and text messages, often using encrypted applications.  He negotiated a commission of 5 percent above the prevailing exchange rate, and accepted cash in person, through nationwide ATMs, and through MoneyGram.  Burrell admitted that he had no anti-money laundering or “know your customer” program, and performed no due diligence on the source of his customers’ money. 

Burrell admitted that, at first, he purchased his supply of Bitcoin through a U.S.-based, regulated exchange, but his account was soon closed because of the large number of suspicious transactions.  He then resorted to a cryptocurrency exchange in Hong Kong, where he purchased a total of $3.29 million in Bitcoin, in hundreds of separate transactions, between March 2015 and April 2017. 

Finally, Burrell admitted that he exchanged his U.S. cash, which he kept in Mexico, with Joseph Castillo, a San Diego-based precious metals dealer, and that between late 2016 and early 2018, he and others imported into the United States, on an almost daily basis, a total of over $1 million in U.S. currency, in amounts slightly below the $10,000 reporting requirement.

In a sentencing memorandum, prosecutors argued that unlicensed money transmitters pose a serious threat to the integrity of the U.S. financial system by creating a hole in the anti-money laundering regulatory scheme and allowing criminals to launder their cash proceeds without scrutiny.  In this case, Burrell provided his clients with anonymity and privacy, and exchanged over $1 million in unregulated cash.

U.S. Attorney Robert Brewer said, “The federal government will continue to investigate and prosecute all white collar criminals who refuse to comply with the anti-money laundering laws of the United States, and who assist others in avoiding scrutiny of their ill-gotten gains. I applaud the excellent work of prosecutor Robert Ciaffa and federal agents who investigated these crimes.” 

 “Today’s sentencing of Burrell is a reminder to those illegal and unlicensed money transmitters that the laws and rules apply to crypto currency dealings just as they do to other types of financial transactions,” said David Shaw, Special Agent in Charge for Homeland Security Investigations in San Diego.  “HSI Special Agents are proud to work with our law enforcement partners to ensure the integrity of the U.S. financial system, and we will continue to adapt to enforce laws across all borders, including cyberspace and the Darknet.”

DEFENDANT                                               Case Number 18CR3554-H

Jacob Burrell-Campos                                     Age: 22                       Rosarito, Baja California, Mexico

Count 1:  Conducting an unlicensed money transmitting business, 18 USC 1960.

Statutory maximum:  5 years prison, $250,000 fine.

AGENCIES

Homeland Security Investigations

Internal Revenue Service

Postal Inspection Service

 

NEWS RELEASE SUMMARY – April 5, 2019

SAN DIEGO – Corey Bernard Green of Fallbrook was sentenced today by U.S. District Judge Anthony J. Battaglia to 151 months in prison for distributing the fentanyl that caused the death of 34-year-old Joseth Adam Sellars on November 3, 2017.

On November 2, 2017, Sellars told his wife, Rebecca Sellars, that he had been sober for about 100 days.  Two days later, she woke up in the morning and found him lying face down on their living room floor. She called 911 but it was too late. Law enforcement arriving at the scene observed drug paraphernalia and a white powdery substance near his body.

The investigation of Sellars’ death found text messages between Sellars and Green indicating that Green had supplied heroin laced with fentanyl to Sellars on November 3, 2017, and that Sellars had taken an Uber to Green’s residence to pick up the substance.  Green was also determined to have conducted a Google search for information related to Sellars’ death, Fallbrook and November 3.

The Government’s sentencing papers noted that this case was a “prime example of the extraordinarily devastating impact that fentanyl, a drug far more potent than heroin, has on lives.”  Fentanyl is anywhere from 25 to 50 times more potent than heroin.  As Rebecca Sellars explained in a statement filed with the Government’s sentencing papers, “[i]n an instant, the earth stopped spinning, the sun ceased shining, and all I could see was a world that I didn’t want to live in anymore.”  During sentencing, Ms. Sellars told the Court that, while her husband was in treatment, she told Mr. Green directly to “leave my husband alone” and argued that this was, therefore not simply “a tragic accident.”  Indeed, on the morning she awoke and discovered her husband deceased from the overdose, Ms. Sellars said, “I woke up in a very good mood because I believed my husband was 102 days sober.”

 In imposing the 151 month sentence, Judge Battaglia explained that, “There is nothing more serious than the loss of life…”  He also noted that, “No matter what we do, it will not bring Mr. Sellars back” and that Ms. Sellars’ statement was “very impactful.” 

“As the opioid crisis continues to rage on, my office will zealously pursue cases against people who distribute fentanyl and other illicit drugs that, tragically, have the power to destroy lives,”  said U.S. Attorney Robert S. Brewer, Jr.  “I commend prosecutors Larry Casper and Tim Coughlin, the Sheriff’s Department, the San Diego Medical Examiner’s Office and the District Attorney’s Office for their outstanding work in this case.”

In June of 2017, the San Diego Sheriff's Department took proactive measures to identify, investigate and arrest individuals who were distributing dangerous substances, such as fentanyl laced cocaine and dangerous opiates, into our communities.  The Sheriff's Department began delegating resources in the initial stages of overdose investigations to develop critical evidence which might have been overlooked before the opioid crisis became a reality for many families.  It is the Sheriff's Department goal to remove these dangerous drugs from our streets and hold people like Corey Green accountable for endangering the lives of others with reckless abandon.

DEFENDANT                                    Case Number 18-cr-2249-AJB                                                       

Corey Bernard Green              Age: 42                       Fallbrook, California

SUMMARY OF CHARGE TO WHICH GUILTY PLEA ENTERED

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

Maximum Penalty – 20 years in custody and $1 million fine

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

NEWS RELEASE SUMMARY – April 4, 2019

SAN DIEGO – Cesar Hernandez-Martinez of Tijuana pleaded guilty in federal court today to managing and supervising an “extensive” international money laundering organization that smuggled $13 million in narcotics proceeds from the United States to Mexico.

The narcotics - multi-kilogram quantities of cocaine, methamphetamine and heroin – were smuggled into the United States from Mexico by a drug-trafficking organization that Hernandez-Martinez acknowledged was a part of, or affiliated with, the Sinaloa Cartel.

Hernandez-Martinez, 29, was extradited from Mexico to the United States in September 2018 to face these charges.  Through his plea agreement, Hernandez-Martinez admitted that, from approximately April 2013 until November 2015, he owned and operated currency exchange houses in Tijuana that received smuggled drug proceeds. Hernandez-Martinez further admitted to knowing that money received was from narcotics trafficking activity in the United States. Hernandez-Martinez also coordinated couriers involved in smuggling this currency from the United States to Mexico, ensuring that they picked up the currency from the correct sources who were primarily located in Southern California.

Hernandez-Martinez pleaded guilty before U.S. Magistrate Judge Bernard G. Skomal.  Hernandez-Martinez will be sentenced on July 8, 2019 at 9:00 a.m. before U.S. District Judge Roger T. Benitez.  Hernandez-Martinez faces up to 20 years in prison and a maximum fine of $26 million (twice the value of the funds involved).  Three other defendants previously entered guilty pleas in this case and were sentenced (Omar Ayon-Diaz; Osvaldo Contreras-Arriaga; and Joel Acedo-Ojeda).

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

DEFENDANT                                    Case Number 15-cr-950                                                                  

Cesar Hernandez-Martinez                Age: 29                       Tijuana, Mexico        

SUMMARY OF CHARGE TO WHICH GUILTY PLEA ENTERED

Hernandez-Martinez

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

Maximum Penalties: 20 years in prison; $500,000 fine or twice the value of the funds involved.

Prior Guilty Pleas and Sentences

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

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

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

INVESTIGATING AGENCY

Homeland Security Investigations

 

A man from Tijuana, Mexico pleaded guilty in federal court today to managing and supervising an “extensive” international money laundering organization that smuggled, from the United States to Mexico, through Southern California and elsewhere, under his direction, $13 million of narcotics proceeds. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert S. Brewer Jr. for the Southern District of California and Special Agent in Charge Dave Shaw of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Diego Field Office, made the announcement.

Cesar Hernandez-Martinez, 29, pleaded guilty to conspiracy to commit international money laundering before U.S. Magistrate Judge Bernard G. Skomal.  Hernandez-Martinez was extradited from Mexico to the United States in September 2018.  The narcotics -- multi-kilogram quantities of cocaine, methamphetamine and heroin – were smuggled into the United States from Mexico by a drug trafficking organization that Hernandez-Martinez acknowledged was a part of, or affiliated with, the Sinaloa Cartel.  Through his plea agreement, Hernandez-Martinez admitted that, from approximately April 2013 until November 2015, he owned and operated currency exchange houses in Tijuana that received smuggled proceeds.  Hernandez-Martinez further admitted to knowing that these smuggled proceeds were from narcotics trafficking activity in the United States.  According to the plea agreement, Hernandez-Martinez also coordinated couriers involved in smuggling this currency from the United States to Mexico, ensuring that they picked up the currency from the correct sources who were primarily located in Southern California.

Hernandez-Martinez will be sentenced on July 8, 2019 before U.S. District Judge Roger T. Benitez.  Three other defendants previously entered guilty pleas in this case and have been sentenced including:

• Joel Acedo-Ojeda, 34, of Culiacan, Sinaloa, Mexico, pleaded guilty to conspiracy to commit international money laundering and was sentenced to serve 135 months in prison and ordered to pay a $20,000 fine;
• Omar Ayon-Diaz, 40, of Tijuana, pleaded guilty to conspiracy to commit international money laundering and was sentenced to serve 120 months in prison and was ordered to pay a $15,000 fine; and
• Osvaldo Contreras-Arriaga, 31, of Culiacan, Sinaloa, Mexico, pleaded guilty to conspiracy to import cocaine and was sentenced to serve 132 months in prison and pay a $1,000 fine.

HSI San Diego conducted the investigation.  Senior Trial Counsel Mark A. Irish of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Lawrence A. Casper of the Southern District of California are prosecuting the case.

Assistant U. S. Attorney A. Dale Blankenship (619) 546-6705    

NEWS RELEASE SUMMARY – March 27, 2019

SAN DIEGO – Three federal indictments unsealed in San Diego today charge 20 people, including documented gang members and associates, with trafficking in oxycodone, methamphetamine, cocaine, marijuana and ultra-deadly carfentanil from homes in City Heights, College Grove and Imperial Beach.

One defendant, Dat Pham Tien Tran aka “Damian,” is charged with distribution of carfentanil resulting in the death of his brother’s longtime girlfriend. The brother, Darren Pham Tran aka “Denny,” is charged with conspiracy to distribute carfentanil and oxycodone. According to a search warrant affidavit, Darren Pham Tran, who overdosed on August 25, 2017 but survived, found his girlfriend dead in her car a few days later, on September 3, 2017.

Early this morning, members of the Drug Enforcement Administration, Federal Bureau of Investigation and other law enforcement agencies made numerous arrests and searched 11 locations in San Diego. The brothers were arrested in College Grove and 12 others were taken into custody in locations throughout San Diego and Riverside counties. Another defendant was in state custody and five were still at large as of 2 p.m.

“As the opioid epidemic rages across the nation, we will do everything we can to save lives,” said U.S. Attorney Robert Brewer. “That includes pursuing charges against dealers of these drugs that are killing people every single day in this country. In the last several months we’ve prosecuted about a dozen cases in which dealers were accused of providing the illegal drugs that resulted in death.” Brewer praised prosecutor Dale Blankenship and local and federal investigators for their tireless efforts to keep dangerous drugs off the streets.

“Gang members profited off the trafficking of various dangerous drugs to include carfentanil – a synthetic opioid 100 times more potent than fentanyl,” said DEA Special Agent in Charge Karen Flowers.  “Purging this gang from our community exemplifies our commitment to fighting violent street gangs and their impact on the opioid epidemic.”

“The federal indictments in this case emphasize the commitment of the San Diego FBI to combat the distribution of dangerous drugs in our communities,” said Suzanne Turner, Acting Special Agent in Charge of FBI San Diego. “This investigation, led by our DEA partners and supported by our federal, state and local task force members, demonstrates the combined effort and resources dedicated to keep San Diego a safer place for us to live.”

According to charging documents, the investigation targeted gang members from the Oriental Crips, Tiny Rascal Gang, Oriental Killer Boys, Viet Boys and Linda Vista 13 who set aside rivalries in order to maximize drug trafficking profits.

During the investigation, law enforcement learned that several of the defendants were involved in the distribution of prescription opioids and counterfeit prescription opioids laced with carfentanil.

Additionally, several of the defendants distributed marijuana to locations along the eastern seaboard using United Parcel Service and the United States Postal Service, according to court documents. Investigators identified defendant Manoxay Insisienmay as the principle marijuana distributor who obtained marijuana from grow operations in the Central District of California and then distributed it locally or shipped it out of state. Court records said Insisienmay operated from local drinking establishment “City Pub” on El Cajon Boulevard. According to the court documents, investigators learned that defendants processed and packaged marijuana at the apartment attached to the rear of the “City Pub.”  Investigators seized numerous parcels containing marijuana destined for Maryland where other individuals then distributed the marijuana. 

During the investigation, authorities also seized parcels containing drug proceeds mailed from out-of-state locations to San Diego, and identified several individuals operating “funnel accounts” on behalf of Insiseinmay. Drug distributors on the east coast made cash deposits into the funnel accounts;  the defendants then withdrew the cash in San Diego. Investigators identified in excess of $100,000 in cash transactions through the funnel accounts.

Investigators executed three marijuana-grow search warrants in the Central District of California and seized over 7,000 marijuana plants.  In addition, investigators executed a search warrant at an Air BnB and seized over $50,000 from out of state marijuana buyers who traveled from Florida to San Diego to buy marijuana.

DEFENDANTS                                           

Case Number 19CR0899-H

Name

Age

Hometown

DAT PHAM TIEN TRAN (1),

   aka “Damian,”

 

31

San Diego

DARREN PHAM TRAN (2),

   aka “Denny,”

 

29

San Diego

ANTHONY VIBOUNPHONH (3),

   aka “Ant,”

33

San Diego

 

ARMANDO ALAN ANGELES (4),

44

 

Imperial Beach

KRISTINE TUYET TRUONG (5),

   aka “K,”

 

29

San Diego

SUMMARY OF CHARGES

Conspiracy to Distribute Oxycodone and Carfentanil (Title 21, U.S.C., Secs. 841(a)(1), 846);

Distribution of Oxycodone and Carfentanil Resulting in Death (Title 21, U.S.C, Secs. 841(a)(1) & (b)(1)(C); Distribution of Oxycodone and Carfentanil Resulting in Serious Bodily Injury (Title 21, U.S.C, Secs. 841(a)(1) & (b)(1)(C);

Maximum Penalties: For Conspiracy to Distribute Oxycodone and Carfentanil Charge: 20 years’ imprisonment and a $1 million fine;

Maximum Penalties: For Distribution of Oxycodone and Carfentanil Resulting in Death and Serious Bodily Injury Charges: life in prison with a mandatory minimum sentence of 20 years and a $1 million fine

Case Number 19CR0900-H

Name

Age

 

Hometown

ERIC JOJO ANGELES (1),

46

San Diego

JIMMY SENGPASEUTH (2),

 

27

San Diego

NAVA JEFF PHETHDARA (3),

32

San Diego

JAVIER PENALOZA (4),

24

San Diego

MINH PHAM (5),

24

San Diego

NALONG LAA KEOMANIVONG (6),

   aka “Elmo,”

 

37

San Diego

ANTHONY VIBOUNPHONH (7),

   aka “Ant,”

33

San Diego

DAT PHAM TIEN TRAN (8),

   aka “Damian,”

31

San Diego

SUMMARY OF CHARGES

Conspiracy to Distribute Cocaine (Title 21, U.S.C., Secs. 841(a)(1), 846);

Possession of Cocaine with Intent to Distribute (Title 21, U.S.C, Secs. 841(a)(1)); Possession of Methamphetamine with Intent to Distribute (Title 21, U.S.C, Secs. 841(a)(1)).

Maximum Penalties: For cocaine and methamphetamine charges: life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.

Case Number 19CR0901-H

Name

 

Age

Hometown

MANOXAY INSISIENMAY (1),

     aka “Mano,”

 

50

San Diego

MANOSANG ANOUNOY INSISIENMAY (2)

     aka “Dustin,”

22

San Diego

AMPHONE VINSON (3),

58

Mountain Center, California

DAORINE DETHAMPHAIVAN (4),

     aka “Tik,”

44

Anza, California

DAT PHAM TIEN TRAN (5),

    aka “Damian,”

31

San Diego

EGZON HAXHIHJA (6),

    aka “X,”

    aka “Florida,”

28

Jacksonville, Florida

TROY MICHAEL COOLEY (7),

 

33

San Diego

LINDA PHAM INSISIENMAY (8),

36

San Diego

MALIVE PARKER (9),

26

San Diego

HEATHER ODOM (10),

 

23

 

 

San Diego

SUMMARY OF CHARGES

Marijuana Distribution Conspiracy – Title 21, U.S.C., Section 841(a)(1) and 846

Maximum penalty: 40 years’ imprisonment, with a mandatory minimum sentence of 5 years and a

$5 million fine.

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

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

AGENCIES

Drug Enforcement Administration

Federal Bureau of Investigation

United States Postal Inspection Service

Homeland Security Investigations

San Diego Police Department

San Diego Sheriff Department

If you have information regarding the fugitives in this case, please contact the San Diego DEA at 858-616-4100 or the San Diego FBI at 858-320-1800.

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

This case is the result of 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.

Assistant U.S. Attorneys Andrew J. Galvin (619) 546-9721 and Joseph S. Green (619) 546-6955

NEWS RELEASE SUMMARY – March 26, 2019

SAN DIEGO – Jimmy Josue Martinez, a leader of the Hooligans motorcycle gang, pleaded guilty today and admitted to participating in a sophisticated scheme to steal dozens of Jeep Wranglers in San Diego County using handheld electronic devices and stolen codes. 

According to court records, the Hooligans are responsible for the theft of more than 150 Jeep Wranglers worth approximately $4.5 million within San Diego County since 2014. The Hooligans used high-tech methods to disable security systems and steal Jeeps in just a few minutes, in the middle of the night, while unsuspecting owners slept nearby. After stealing the Jeeps in San Diego County, the Hooligans transported them to Tijuana, Mexico, where the vehicles were sold or stripped for parts. 

In his plea agreement, Martinez admitted to stealing Jeeps in Pacific Beach, Serra Mesa, Chula Vista, Mission Valley, Ocean Beach, Hillcrest and North Park. Martinez also admitted to leading one of the Hooligans theft crews, which would target a specific Jeep days before the actual theft would take place. Martinez and members of his theft crew obtained the vehicle identification number in advance and then managed to get secret key codes, which allowed them to create a duplicate key for that particular Jeep. Then, during the theft, they disabled the alarm system, programmed the duplicate key using a handheld electronic device, and quietly drove away without notice.

In November 2014, San Diego Police Department patrol units attempted to stop Martinez after he participated in the theft of a Jeep in Mira Mesa. Martinez failed to pull over and drove south along Interstate 805 at speeds exceeding 120 miles per hour. Customs and Border Patrol officers unsuccessfully attempted to stop Martinez at the United States/Mexico border.  In his plea agreement, Martinez admitted to ramming a vehicle stopped in front of him multiple times in order to maneuver around concrete barriers and drive south into Mexico.

“The joy ride is over for Mr. Martinez,” said U.S. Attorney Robert Brewer. “These thefts were audacious and sophisticated and created hassle and heartache for scores of Jeep owners. I congratulate prosecutors Andrew Galvin and Joseph S. Green, the FBI and members of the Regional Auto Theft Task Force for putting together a strong case against a gang that, unfortunately, has lived up to its name.”

“This case is a reminder that our proximity to the international border provides increased opportunity for transnational organized crime,” said FBI Acting Special Agent in Charge Suzanne Turner.  “The Hooligans crime group took advantage of this proximity by stealing millions of dollars’ worth of vehicles from San Diegans in order to hide, chop, sell, and profit from those vehicles in Mexico. The FBI worked day and night, alongside our partners at the Regional Auto Theft Task Force (RATT), to bring Martinez, the leader of this transnational organization, to justice.”

Martinez and eight other members of the Hooligans were charged in a grand jury indictment in May 2017.  As part of his plea, Martinez agreed to pay at least $246,396 in restitution. Martinez will appear for sentencing on June 24, 2019 at 10:30 a.m. before U.S. District Judge John A. Houston. Of the nine Hooligans charged, six have pleaded guilty and three remain fugitives.

DEFENDANT:                                             Case Number 17-CR-1314-JAH

Jimmy Josue Martinez                                    Age:    33                                Tijuana, Mexico

SUMMARY OF CHARGES

Conspiracy to Commit Transportation of Stolen Vehicles in Foreign Commerce – Title, 18 U.S.C., Section 371

Maximum penalty: 5 years’ imprisonment; $250,000 fine; restitution.

AGENCIES

Federal Bureau of Investigation

Regional Auto Theft Task Force, which includes the following agencies: U.S. Border Patrol
California Highway Patrol
National Insurance Crime Bureau
California Department of Insurance
California Department of Motor Vehicles
San Diego County District Attorney’s Office
San Diego County Probation Department
San Diego County Sheriff’s Department
ICE Enforcement and Removal Operations and police departments from La Mesa, Chula Vista, National City, Oceanside and San Diego

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

NEWS RELEASE SUMMARY – March 15, 2019

SAN DIEGO – Former U.S. Social Security Administration employee Nam-Phong Hung Le pleaded guilty in federal court today to two felony charges, admitting he stole tens of thousands of dollars in government benefits intended for the elderly and the disabled. 

During a hearing before U.S. District Judge Janis L. Sammartino, Le acknowledged that while he was employed as a technical expert at the Social Security Administration, he set up a bank account in the name of two recipients of Supplemental Security Income (SSI).  Le admitted that he knew both recipients had left the United States and were therefore ineligible for SSI, and that he took over the newly created bank account and personally received almost $30,000 in SSI payments in their names without their knowledge.  Le further admitted that his fraud cost the State of California over $20,000 in medical premium payments made to the SSI recipients after they had left the country, which made them ineligible for subsidized medical benefits.

In his plea agreement, Le, 37, admitted that he also exploited his position with the Social Security Administration to identify SSI recipients with “underpayments” – that is, individuals owed lump sum cash payments by the Social Security Administration.  Le admitted that he used the same fraudulent bank account that he had previously created to steal more than $15,000 in money owed to six other individuals, including one deceased person. Le admitted that he withdrew the money at ATM locations throughout Southern California and deposited the cash into his personal bank accounts.

“The taxpayer has a right to expect that public servants will perform their duties honorably, and that programs intended to assist our nation’s most vulnerable individuals will not be compromised from within,” said United States Attorney Robert Brewer. “The United States Attorney’s Office is committed to ensuring the integrity of Social Security Administration employees, and maintaining the public’s trust in one of our nation’s oldest and most important aid programs.” Brewer also praised the work of federal prosecutor Jeffrey D. Hill and investigators with the Social Security Administration – Office of the Inspector General.

“There is nothing more important to federal employment than public trust. When that trust is violated, it impacts the entire federal workforce and those they serve,” said Robb Stickley, the special agent in charge of Social Security's San Francisco Field Division, which is responsible for Southern California.

As a part of his plea agreement, Le agreed to pay full restitution to the Social Security Administration and the State of California’s Department of Health Care Services, and to a separate order of criminal forfeiture equal to the amount of money that Le stole from the Social Security Administration through his fraudulent bank account.  Le is scheduled to be sentenced on July 12, 2019.

DEFENDANT                       Case Number 19-cr-0532-JLS

Nam-Phong Hung Le              Chula Vista, CA                     Age: 37

SUMMARY OF CHARGES

Social Security Fraud – Title 42, U.S.C., Section 1383a(a)(3)

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

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

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

AGENCIES

Social Security Administration – Office of the Inspector General

Assistant U.S. Attorneys Alessandra P. Serano (202) 252-5843 or Joseph Orabona (619) 546-7951    

NEWS RELEASE SUMMARY – March 8, 2019

SAN DIEGO – A leader of the Westside Crips was sentenced to 82 months in prison yesterday for his aggravating role in a racketeering conspiracy involving sex trafficking, narcotics trafficking and other violent crimes as well as possession of a controlled substance with the intent to distribute.    

According to court records, Corey DeShawn Austin, aka “Westwood,” admitted to his membership and association with the Westside Crips, which primarily operated in Oceanside and elsewhere.  Austin pleaded guilty to RICO Conspiracy and Possession with Intent to Distribute Controlled Substances on August 31, 2018. In furtherance of these crimes, Austin, the lead defendant, admitted he engaged in promoting prostitution of adult females between 2013 and 2015, including while he was in state custody for another offense.  Austin further admitted he possessed narcotics for sale in 2013.  Austin also admitted he promoted the Westside Crips during the RICO conspiracy through photos posted of himself throwing up gang signs and wearing gang colors showing his allegiance to Westside Crips on social media between 2013 and 2016. 

At sentencing, the parties disputed whether Austin had an aggravating role in the RICO conspiracy – a finding that would mean a longer sentence. After hearing testimony from the government and defense expert witnesses at an evidentiary hearing on March 4, 2019, and reviewing the submissions by the parties, U.S. District Judge John A. Houston ruled yesterday that Austin had an aggravating role in the conspiracy because the testimony and evidence proved that he managed, supervised, and directed the criminal activity conducted by other members of the Westside Crips. Judge Houston noted that Austin’s conduct was particularly aggravating because he was managing, supervising and directing other gang members while he was in prison, using a contraband prison cell phone.

Austin was charged in 2017 as part of a larger investigation involving twelve other members of the Westside Crips Criminal Enterprise.  The following table provides a summary of the crimes and sentences for 10 of the other defendants who have been convicted and sentenced in this case:

Defendant

Charge(s)

Sentence

Ameer Fareed Roby

aka “Tiny Dum Dum”

RICO Conspiracy

 

48 months in prison,

3 years supervised release

 

Michael Anthony Sullivan

aka “Du-Low”

RICO Conspiracy

 

36 months in prison,

3 years supervised release

 

Peter Andrew Miranda

aka “Fat Boy”, “Baby Rocks”, “Lil’ Burger”

 

RICO Conspiracy

 

45 months in prison,

3 years supervised release

Shane Robert Anderson

aka “Tiny Westwood”,       

“Tiny West”

RICO Conspiracy

28 months in prison,

3 years supervised release

 

Jasiri Malcolm Lacey

aka “Baby Westwood”,

“Baby West”

 

RICO Conspiracy

72 months in prison,

3 years supervised release

 

Demetrius Montre McFarland

aka “Mechii Ruu”

 

RICO Conspiracy

52 months in prison,

3 years supervised release

Travion McHenry

aka “Too Much”

 

 

 

RICO Conspiracy

Drug Trafficking

54 months in prison,

3 years supervised release

Richard Cleveland

aka “Face”

RICO Conspiracy

57 months in prison,

3 years supervised release

 

Larry Darnell Monroe

 

 

RICO Conspiracy

 

 

Drug Trafficking

 

151 months in prison,

3 years supervised release

 

180 months in prison,

3 years supervised release

 

Umesh Oza

aka “Kevin”

 

RICO Conspiracy

 

4 months in prison,

180 days home confinement,

3 years supervised release

 

“The sentence imposed yesterday for one of the leaders of the Westside Crips demonstrates the seriousness of these crimes and will hopefully deter younger members of the community from becoming members of criminal street gangs,” said U.S. Attorney Robert S. Brewer. “Sex trafficking is a crime that has long-lasting and devastating effects on the women who are controlled by gang members.  This office will continue to target criminal street gangs that promote serious crimes, such as sex trafficking, narcotics trafficking, and other violent crimes in our communities.”

Brewer praised prosecutors Alessandra Serano and Joseph Orabona and law enforcement partners for investigation and legal work that has resulted in a halt to dangerous gang activity.

“One of the top priorities for the DEA in San Diego is dismantling criminal street gangs that profit by selling sex and drugs in our community.  The profit, cold hard cash, in turn fuels the violence on our streets,” said Special Agent in Charge Karen Flowers.  “DEA will continue to target and put away criminal street gang members like Mr. Austin because it makes San Diego County a safer place to live.”

“For over a decade, this sophisticated street gang terrorized the streets of Oceanside and the surrounding areas for profit,” said IRS Criminal Investigation’s Special Agent in Charge Ryan L. Korner.  “Our agency plays a unique role in federal law enforcement’s resolve to dismantle criminal gang enterprises. Our agents target the profit and financial gains of these violent organizations, following the money in an effort to disrupt these organizations and bring their members to justice.”

“The Oceanside Police Department would like to thank the U.S. Attorney's Office and other law enforcement agencies for their collaboration and hard work during this operation.  “It is collective efforts like this that highlight why the San Diego region is a model for other law enforcement agencies to emulate, to keep their communities safe,” said Oceanside Police Chief Frank McCoy.

The remaining defendant, William Bright, has a sentencing hearing on May 13, 2019.

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 Number: 17CR0270-JAH                              

Corey DeShawn Austin aka “Westwood”                  Age: 38                       Oceanside, CA

SUMMARY OF CHARGES

Title 18, United States Code, Section 1962(d) - Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity

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

Title 21, United States Code, Section 841(a)(1) – Possession with Intent to Distribute Controlled Substances

Maximum Penalties: 5 years’ in prison, a fine of $250,000, three years of supervised release

AGENCIES

North County Narcotics Task Force

Drug Enforcement Administration

Oceanside Police Department

Internal Revenue Service

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

NEWS RELEASE SUMMARY – March 8, 2019

SAN DIEGO – Former Major League Baseball All-Star pitcher Esteban Loaiza was sentenced in federal court today to 36 months in prison for knowingly and intentionally possessing 20 kilograms - about 44 pounds - of cocaine with intent to distribute.   

In his plea agreement, Loaiza admitted that he took possession of a silver Mercedes-Benz sport utility vehicle on February 9, 2018 that he knew contained cocaine. He  drove the SUV to a townhouse he’d rented in Imperial Beach, where he transferred the 20 kilograms to another vehicle in the garage. He admitted he did so with the intent to distribute the cocaine to another person.

“As a professional athlete, Esteban Loaiza earned tens of millions of dollars and the admiration of baseball fans across the U.S. and Mexico,” said U.S. Attorney Robert Brewer. “And yet he sacrificed his reputation - and now his freedom - to become a cocaine trafficker. No one is above the law, and that includes Major League all-star pitchers.”

“Mr. Loaiza lived every young boy’s dream as an All-Star baseball player.  And yet, he chose to be a drug dealer,” said DEA Special Agent in Charge Karen Flowers.  “He chose to break the law for profit.  He chose to make a buck off someone’s addiction.  Today, society chose to hold him accountable and took away his freedom.”

According to the government’s sentencing memorandum, Loaiza’s rented townhouse was a “stash house” used to distribute cocaine and lacked furniture or personal belongings.  Law enforcement located the cocaine concealed within a factory-built compartment in the rear cargo area of a minivan parked in the garage under baseball bags bearing Loaiza’s name. The packages of cocaine are depicted in the attached photos from the government’s sentencing papers.

In court today, Assistant U.S. Attorney Larry Casper highlighted aggravating factors that he said make this crime more troubling, including the significant quantity of cocaine, Loaiza’s active and involved participation in the criminal venture, and his privileged background.

Casper described the amount of cocaine as “very substantial even in this border district.  That quantity represents tens of thousands of doses of a highly addictive drug that so often has a devastating impact on the lives of so many - not only in our community but well beyond.”

Casper also noted that the defendant was not merely a courier. He had full knowledge of what he was transporting; he rented and maintained the stash house and he transported and transferred 20 packaged bricks of cocaine himself, from one vehicle to another.

“This defendant had every advantage before engaging in this crime,” Casper said. “Mr. Loaiza had fame, he had fortune. He earned significant accolades in baseball and had opportunities many can only dream of. He was certainly looked up to by many youngsters as a success and as a figure to emulate. These circumstances are very different from many of the defendants that this court sees. In some sense, this case is akin to circumstances in which an individual abuses a position of trust in committing a crime.”

After handing down the sentence, U.S. District Court Judge Janis L. Sammartino acknowledged the defendant’s history as a baseball star. “The story changes,” she told him. “It’s not just a success story…But it’s still something people can learn from.”

Loaiza was allowed to remain free on bond and ordered to report to authorities on April 19.

Brewer praised Assistant U.S. Attorneys Larry Casper and Jarad Hodes for their excellent work on the case. “Because of Larry, Jarad and our law enforcement partners, this defendant will no longer be free to bring destructive drugs into our communities.”

“We are grateful for the perseverance that our law enforcement partners have demonstrated during the past several months,” said San Diego Sector Chief Patrol Agent Rodney Scott. “Collaboratively, our efforts resulted in Esteban Loaiza’s just conviction and sentencing.”

This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCEDTF), a partnership that brings together the combined expertise and unique abilities of federal, state, and local law enforcement agencies.  The principal mission of the OCEDTF 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 Number 18CR1743-JLS                            

Esteban Antonio Loaiza                                  Age: 47           Imperial Beach, California

SUMMARY OF CHARGES

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

Maximum penalty: Life in prison and $10 million fine

AGENCIES

United States Drug Enforcement Administration

United States Border Patrol

San Diego Sheriff’s Department       

 

Kelly Thornton 619-546-9726

NEWS RELEASE SUMMARY – February 28, 2019

SAN DIEGO – Peter J. Mazza, a trial lawyer and former federal prosecutor, rejoined the U.S. Attorney’s Office today as second-in-command of one of the busiest federal districts in the nation.

Mazza, who was selected by U.S. Attorney Robert Brewer, was sworn in by Chief U.S. District Judge Larry Burns during a ceremony this morning. As First Assistant U.S. Attorney, Mazza will oversee the day-to-day operations of the office and serve as a trusted advisor to the U.S. attorney.

During his eight years as a prosecutor in the San Diego office beginning in 2006, Mazza worked in the General Crimes Section, the Organized Crime Drug Enforcement Task Forces Section and the Major Frauds and Special Prosecutions Section, handling a wide variety of complex and significant cases. Mazza led many investigations involving crimes such as multi-million dollar tax and bank fraud schemes, public corruption, racketeering, extortion, money laundering and fraud.

Mazza left the office in 2014 to become a partner at Jones Day, specializing in business and tort litigation.

Brewer, who was sworn in as U.S. Attorney on January 16, previously worked at Jones Day, where he met Mazza briefly before moving to another firm. The two overlapped for a couple of months in 2014. Brewer said he was impressed by Mazza’s work experience.

“I am excited that the office will once again benefit from the depth and breadth of Pete’s expertise and knowledge related to our work and our mission,” U.S. Attorney Brewer said. “His sterling reputation, trial experience, and our shared vision for the office made him the clear choice. We and the entire Department of Justice are tremendously fortunate that he has decided to bring his legal skill, extraordinary judgment and professional experience back to our office.”

Mazza received his Bachelor of Arts in History from Yale University, graduating cum laude, and was captain of the varsity football team. He received his law degree from the University of Michigan Law School, graduating with distinction.

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

Assistant U. S. Attorney Kareem Salem (619) 546-8904    

NEWS RELEASE SUMMARY – February 26, 2019

SAN DIEGO – A couple from El Salvador awaiting the outcome of pending asylum cases was arrested yesterday at the U.S. Border Patrol State Route 94 Immigration Checkpoint and charged with alien smuggling.

According to a federal complaint, Edy Giovanni Fuentes-Alvarado and his wife, Kenia Yamileth Gomez-Caballero, approached the primary inspection area of the checkpoint in a white Nissan Armada at 12:06 p.m. Monday. They were referred to secondary inspection to verify their lawful presence in the U.S. after they told agents they are citizens of El Salvador who have an asylum case pending.

In secondary, Fuentes told agents that he and his wife came to the area to pick up his cousin, whom they acknowledged was an undocumented immigrant. Fuentes said they were waiting for a phone call from the cousin. An agent received permission from Fuentes to search his phone and discovered text messages appearing to coordinate transportation and a GPS location of the cousin.

Border Patrol agents used information from Fuentes’ phone to track the cousin and a second person near the intersection of Otay Lakes Road and State Route 94. Both told the agents they are citizens of El Salvador and illegally present in the U.S. They were taken into custody.

DEFENDANTS                                            Case Number 19mj0808                                          

Edy Giovanni Fuentes-Alvarado                    Age: 37                       El Salvador

Kenia Yamileth Gomez-Caballero                  Age: 36                       El Salvador                

SUMMARY OF CHARGES

Transportation of Certain Aliens – Title 8, U.S.C., Section 1324(a)(1)(A)(ii)

Maximum penalty: Five years for each alien

AGENCY

U.S. Border Patrol

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

 

Assistant U.S. Attorneys Daniel Zipp (619) 546-8463 and Seth Askins (619) 546-6692

NEWS RELEASE SUMMARY – February 22, 2019

SAN DIEGO – Robert Holcomb, 53, was sentenced in federal court today to 46 months’ custody and ordered to pay a fine of $600,000, for misappropriating the identities of charities and using them to open bank accounts as part of a long-running tax fraud scheme.

Holcomb, who appeared before U.S. District Court Judge William Q. Hayes, was convicted by a federal jury on July 20, 2018 of four counts of making false statements to a financial institution.

According to the evidence presented at trial, Holcomb held himself out as an “asset protection” specialist who had the ability to use charitable trust accounts to reduce the tax liability of clients. Holcomb convinced his clients to forward him the profits from their businesses, which he then cycled through a series of bank accounts—with names that sounded like charities—and then returned the funds, minus a commission, with the assurance that they no longer constituted taxable income. Holcomb’s clients then filed tax returns that substantially underreported their true income, resulting in millions of dollars in lost income to the IRS.  Over the course of a decade, Holcomb transferred more than $12 million in otherwise taxable income through his accounts, collecting “commissions” from his clients of more than $1 million dollars.

In 2011, after a number of Holcomb’s bank accounts were frozen, he was forced to open dozens of new accounts to keep the tax-evasion scheme operating. To do so, Holcomb began creating corporate entities whose names matched those of existing charities; misappropriating the taxpayer identification information from those charities; and then using their names and identification numbers to open new bank accounts. These charities included:

• Light of Life LLC, which operated a soup kitchen and rescue mission in Pittsburgh, PA;
• On Eagle’s Wings LLC, which provided missionary outreach in the Northwest Territories of Canada;
• Push the Rock, LLC, a Christian Sports Ministry, in Pennsylvania; and
• Sharing and Caring, LLC, a veteran’s organization that organized an annual boat trip for wounded veterans in Pittsburgh.

Representatives from each organization testified at trial that they did not know Holcomb, never gave him authorization to use their identities, and were unaware that he opened bank accounts in their name. When confronted about his affiliation with the charities, in a recorded call, Holcomb claimed that he had a “fiduciary relationship” and “run[s] everything.” When IRS agents then executed a search warrant on Holcomb’s residence, he admitted to using the charities’ numbers, but claimed that he could “use whatever number” he wanted, because he was “USA posterity.” Holcomb explained that he was “part of the upper caste” that was descended from the original founders of the “Massachusetts Bay Company.” As such, he explained, he was not required to pay taxes and was not subject to the Constitution.

“Holcomb used a series of sham trust arrangements to divert millions of taxpayer dollars into his own pocket,” said U.S. Attorney Robert Brewer.  “His offense was particularly egregious because he used the identities of real charities in order to avoid detection and continue collecting commissions on funds that should have gone to the U.S. Treasury. No one is above the law, and merely claiming to be a sovereign citizen will not exempt you from criminal liability.”

“As today’s sentencing shows, individuals who create elaborate schemes that have no purpose other than to defraud the IRS and financial institutions will be prosecuted and suffer a loss of freedom,” said Acting Special Agent in Charge Bryant Jackson of IRS Criminal Investigation.  “With filing season in full swing, it is a good time to remember that the IRS will actively pursue fraudsters who cleverly orchestrate these types of avoidance schemes.”

The case was prosecuted by Assistant U.S. Attorneys Daniel Zipp and Seth Askins.

DEFENDANT                                                      16-CR-1408-WQH

Robert Holcomb       Age: 53          San Marcos, CA                   

SUMMARY OF CHARGES

Making False Statements to a Financial Institution (18 U.S.C. 1014)

AGENCIES

Federal Bureau of Investigations

Internal Revenue Service

Bureau of Alcohol, Tobacco, Firearms and Explosives

Assistant U.S. Attorneys Valerie Chu (619) 546-6750, Caroline Han (619) 546-6968 and Fred Sheppard (619) 546-8237

NEWS RELEASE SUMMARY – February 22, 2019

SAN DIEGO – This week in federal court a slew of conspirators involved in a massive Workers’ Compensation kickback scheme were ordered to serve prison sentences and pay millions in financial penalties for their roles in the corrupt payment of millions of dollars to induce doctors and other medical professionals to refer hundreds of injured workers for medical treatments and services. 

According to court records, dozens of marketers, doctors, lawyers and medical service providers conspired to bilk the Workers’ Compensation system in California by buying and selling patients -- and their individual “body parts” -- like commodities. Among the defendants sentenced this week was an attorney, a chiropractor, two business owners and several marketers who referred patients for tests (such as MRIs, functional capacity exams and sleep studies), treatments (such as “shockwave,” x-rays, and ultrasound), pain medications, and durable medical equipment (DME) based on the corrupt payments.  The conspirators often subjected patients to uncomfortable and sometimes painful procedures, so the conspirators could thereafter bill insurance companies for millions of dollars.  As the government argued in its sentencing papers, the conspirators’ corruption of the doctor-patient relationship caused physicians to see price tags on every patient’s body parts.  Each of the defendants played a critical role in the corrupt scheme.

The Corrupt Network

Defendant Fermin Iglesias and co-defendant Carlos Arguello operated a patient-capping enterprise, in which they found individuals who would file Workers’ Compensation claims against their employers.  Iglesias and Arguello then sold, bartered and exchanged these applicants with others in the Workers’ Compensation industry, including attorneys, primary care physicians, and providers of medical goods and services.  Each of these entities had to “pay to play,” and as the patient was referred throughout this corrupt system, money changed hands at each step.  Arguello operated several patient-recruitment entities, including one called Centro Legal.  Through billboards, flyers, advertisements and business cards, Centro Legal recruited persons to seek workers' compensation benefits from their employers or former employers.  When the injured worker called the 1-800 number on the billboard or card, he or she reached a call center, which might be located in another country.  From there, Iglesias’ company, Providence Scheduling, took over brokering the patient to maximize the profit that could be extracted from him or her.

Centro Legal referred the newly-acquired patient to complicit Workers' Compensation attorneys, including, in San Diego, attorney Sean O’Keefe, who had one of the largest Workers’ Comp caseloads in the region.  To get these new clients, the attorneys in the corrupt network were expected to comply with certain conditions: first, they had to use Arguello’s copying service to fulfil document requests for all of the new client’s medical records; second, they had to agree to designate as their client’s primary treating physician (“PTP”) one of the complicit physicians within the corrupt network.  In exchange, the attorneys received compensation.  For O'Keefe, the compensation took a variety of forms.  One hospital administrator paid the salaries of two employees of O’Keefe’s law firm, as a kickback to O’Keefe for referring spinal surgeries to that hospital. In another variation, the kickback payments were disguised as payments for nonexistent legal services, for which O’Keefe generated phony “legal invoices” to cover up those obviously illegal payments.

The corrupt physician could serve as the patients' primary care physician in the Workers' Comp system.  This was a key gatekeeper role, because the PTP was entrusted with the authority to determine what additional goods and services the patient needed.  Iglesias required that the chiropractors prescribe a certain minimum quota of goods and services, on average, for each patient.  If the chiropractor failed to live up to the quota, Iglesias would cut off the flow of new patients.

Dr. Steven Rigler was one of the chiropractors involved in the corrupt referral network.  He had clinics in Calexico, San Diego, and Escondido.  To get patients for his San Diego and Escondido clinics, Rigler agreed to meet the referral “quota” set by Iglesias and Arguello. Court records reflect that Iglesias set a “value” for each type of service the physicians could refer, for example, $30 for each MRI, and $150 for Durable Medical Equipment (DME), to meet the quota of $600. To get credit, physicians had to refer their DME orders to Iglesias’ company, Meridian Medical Resources. Many of the MRIs were referred to Advanced Radiology, a diagnostic imaging company owned by Dr. Ronald Grusd.  In Calexico, Ruben Martinez ran Rigler’s clinic and managed all of Rigler’s referrals for ancillary services.  Alexander K. Martinez performed the same service for Rigler’s other clinics.

If the physicians failed to meet the quota, Iglesias cut off the pipeline of new patients.  Iglesias employed Miguel Morales to ensure that physicians met the quota, and to demand lump-sum payoffs from them if they failed to do so.  And to avoid such problems, and ensure a smooth referral process, Arguello hired referral managers who worked in chiropractor offices.  For a time, Julian Garcia was paid by Arguello to manage Rigler's referrals. Garcia had Rigler's signature stamp, and if Rigler got behind, Garcia would simply increase the number of MRIs referred for each patient.  Eventually, Garcia himself got licensed as a DME provider, and he himself paid chiropractors $50 apiece to prescribe “hot/cold packs” for pain relief, which were then billed to insurance companies for nearly $6,000. 

Jennifer Louise White represented providers of other types of services, namely, Autonomic Nervous System (“ANS”) studies and sleep studies.  She worked with Alex Martinez and with providers of the ANS and sleep studies to pay nearly $200,000 in kickbacks to Rigler to refer patients for these services.

Sentencing Hearings

In sentencing hearings held on February 20 and 21, 2019, U.S. District Judge Cynthia A. Bashant sentenced each defendant to custodial time. For his crimes, Iglesias was sentenced to 60 months in custody, and required to forfeit $1,005,000 in ill-gotten gains.  Judge Bashant imposed five years’ probation on Igelsias’ corporations, MedEx and Meridian, and imposed a $500,000 joint and several fine.  Miguel Morales was sentenced to 12 months and 1 day in custody, and was required to forfeit $140,000.

Alexander and Ruben Martinez were each sentenced to 33 months in custody and three years of supervised release.  Their companies, Line of Sight and Desert Blue Moon, were sentenced to five years’ probation and fines of $45,000 and $20,000 respectively. Jennifer Louise White was sentenced to 24 months in custody, and ordered to pay fine of $25,000.

Onetime Workers’ Compensation applicant attorney Sean E. O’Keefe received a sentenced of 13 months in custody, and was required to forfeit $300,000 in ill-gotten gains. San Diego chiropractor Steven J. Rigler was sentenced to six months in custody, and was ordered to forfeit $150,000. The court substantially reduced both defendants’ sentences because they cooperated with authorities soon after being confronted by agents, and played critical roles in revealing the scope of the corrupt network.

Throughout the sentencing hearings, Judge Bashant expressed dismay that the defendants scammed a system “that’s set up to help people that really need the help.”  She further expressed concern that these crimes would undermine public support for social safety-nets, such as the Workers’ Compensation system for injured workers. She expressed particular disappointment that licensed professionals like attorney O’Keefe and Dr. Rigler would engage in the fraud: “You are the most educated. You should know better,” she reproached them. 

This week’s sentencing hearings, along with the conviction and sentence of Beverly Hills Radiologist Dr. Ronald Grusd, bring to a successful close the first wave of cases brought by the U.S. Attorney’s Office and its law enforcement partners to combat fraud in the California Workers’ Compensation System. 

“It is unfortunate that some individuals see only an opportunity to profit in a system designed to aid injured workers,” said U.S. Attorney Robert S. Brewer, Jr.  “What’s more, this crime corrupted the doctor-patient relationship.  A doctor’s medical decisions should be based on the best interest of the patient, not the highest bidder.”

“Health care fraud betrays vulnerable patients and steals funds meant to care for injured workers,” said FBI Special Agent in Charge John Brown.  “The cases in 'Operation Back Lash' have shown that these medical professionals, doctors, and attorneys who took bribes chose profit over their patients. This massive investigation, with over 30  convictions to date, demonstrates the FBI's commitment to finding those who commit fraud and bringing them to justice.”

Anyone with information about healthcare fraud may call the FBI at 1-800-CALL-FBI, or 1-800-225-5324 or the California Department of Insurance’s toll-free fraud hotline, 800-927-4357.

DEFENDANTS        

United States v. Grusd, et al., 15cr2821-BAS                    Sentence               

Ronald Grusd, Los Angeles, CA                                                        10 years, $1.3 million forfeiture, $250,000 fine

California Imaging Network Medical Group                         5 years’ Probation, $500,000 fine

Willows Consulting Company                                               5 years’ Probation, $500,000 fine

Alex Martinez, El Centro, CA                                                37 months’ custody

Ruben Martinez, Murietta, CA                                               33 months’ custody

Line of Sight, Inc.                                                                   5 years’ Probation, $45,000 fine

Desert Blue Moon, Inc.                                                          5 years’ Probation, $20,000 fine

United States v. Iglesias et al, 16CR0131-BAS

Fermin Iglesias                                                                       60 months’ custody, $1,005,000 forfeiture

MedEx Solutions                                                                    5 years’ Probation, $500,000 fine

Meridian Medical Resources                                                  5 years’ Probation, $500,000 fine

Miguel Morales                                                                      12 months 1 day custody, $140,000 forfeiture

United States v. Garcia, 15CR2820-BAS

Julian K. Garcia, National City, CA                                       33 months’ custody, $10,000 fine

United States v. White, 16CR2905-BAS

Jennifer Louise White, Glendale, CA                                    24 months, $25,000 fine

United States v. O’Keefe, 14CR2343-BAS

Sean Enrique O’Keefe                                                            13 months, $300,000 forfeiture

United States v. Rigler, 15CR2773-BAS

Steven J. Rigler                                                                       6 months, $150,000 forfeiture

INVESTIGATING AGENCIES

Federal Bureau of Investigation

San Diego County District Attorney’s Office

California Department of Insurance

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

NEWS RELEASE SUMMARY – February 21, 2019

SAN DIEGO – Hardev Panesar pleaded guilty in federal court today, admitting that he orchestrated a long-running immigration-fraud scheme that tricked more than 100 victims out of millions of dollars based on false claims that they could secure immigration status in the United States.

Panesar pleaded guilty before U.S. District Judge Gonzalo P. Curiel to all counts, including one count of conspiracy to commit wire fraud, three counts of wire fraud, four counts of false impersonation of a federal officer, and one count of structuring financial transactions.  Panesar also pleaded guilty to a separate count of failing to appear in court, resulting from his decision “jump bail” and flee to Mexico in June 2018, where he remained a fugitive for two months.      

According to his plea agreement, Panesar admitted that from at least 2012 through May 24, 2017, he defrauded immigrants and aliens by inducing them to pay money to him based on fraudulent claims that he and his co-conspirators could obtain legal status in the United States for the victims and their families.  Panesar managed to defraud the victims by, in part, impersonating an official from the Department of Homeland Security (DHS) and claiming that he had the power to stop deportation proceedings.  To trick his victims, Panesar repeatedly showed fake agency credentials, provided immigration applications, and took fingerprints of victims. He often demanded more money to speed up the process or guarantee the immigration documents by a certain date. Panesar and his co-conspirators never delivered on their promise to provide immigration documents, despite collecting hundreds of thousands of dollars from victims. As part of the plea agreement, Panesar agreed to pay approximately $2.5 million in restitution to his many victims.

Panesar also admitted that on June 21, 2018, he fled to Tijuana, Mexico, the day before a hearing scheduled in this case. Panesar remained a fugitive, hiding in Mexico, until August 13, 2018, when he was arrested by Mexican authorities and expelled back to the United States.  Panesar has been in custody ever since, pending trial.

Panesar is scheduled to be sentenced on May 10, 2019, at 8:30 a.m. before Judge Curiel.  Rafael Hastie, one of Panesar co-conspirators, was sentenced to 46 months in custody on January 4, 2019.   

The investigation into this case continues. The San Diego Division of the Federal Bureau of Investigation is seeking possible victims in this investigation from 2000 through 2017.   If you believe you are a potential victim of this crime, please fill out the questionnaire at https://forms.fbi.gov/SDImmigrationFraud or email the FBI at SDImmigrationFraud@ic.fbi.gov. 

DEFENDANT                                  

Hardev PANESAR                             Age: 70

SUMMARY OF CHARGES (17CR1371-GPC)

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

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

Counts 5-8: 18 U.S.C. § 912, False Personation of an Officer or Employee of the United States; Maximum Penalty 3 years in prison, $250,000 fine, forfeiture, restitution

Count 11: 31 U.S.C. § 5324(a)(3), Structuring at Domestic Financial Institutions; Maximum Penalty 10 years in prison, $250,000 fine, forfeiture

SUMMARY OF CHARGES (18CR3229-GPC)

Count 1: 18 U.S.C. § 3146(a)(1), Failure to Appear

AGENCY

Federal Bureau of Investigation

 

NEWS RELEASE SUMMARY – February 15, 2019

SAN DIEGO – Convicted felon Dwight Wayne Jordan, aged 60, a San Diego resident, was sentenced today to 151 months for knowingly and intentionally possessing, with intent to distribute, cocaine base (i.e., crack cocaine), cocaine and heroin along with illegally possessing eleven firearms that included semi-automatic weapons, shotguns, and .357 Magnum revolvers among others.

U.S. District Judge Gonzalo P. Curiel also ordered forfeiture of each of the eleven firearms and ammunition seized; $43,440 in United States currency; and a 2013 Porsche Cayenne in which a portion of Jordan’s narcotics proceeds were located.  During sentencing, Judge Curiel explained that Jordan’s narcotics distribution efforts were “deadly, crippling and so destructive . . ..” and that Jordan was responsible for putting “so much poison out to a community that is already underserved.”

            Through his plea agreement, Jordan admitted that, on September 8, 2018, he was the driver and sole occupant of a BMW X3 traveling on the I-94 near Market Street in San Diego when a San Diego Police Department (SDPD) Officer attempted to conduct a lawful traffic stop.  Although Jordan initially yielded, as the officer exited his vehicle, Jordan accelerated and attempted to flee, running two red lights.  While fleeing, Jordan threw a bag from the car window containing approximately two kilograms of cocaine that was recovered by SDPD.  After the vehicle was stopped, a search yielded more than $6,900 that Jordan later admitted were the proceeds of narcotics trafficking.  The attached photo (Attachment 1), filed with the Government’s sentencing papers, depicts items seized from the vehicle.

            On September 18, 2018, law enforcement also executed follow-up search warrants at Jordan’s residence and alleged business -- the “Cuttin up” barbershop -- in San Diego.  Those searches yielded eleven firearms; $36,499 in cash, including the cash found in the Porsche Cayenne, all of which resulted from narcotics trafficking; and significant quantities of cocaine base, cocaine and heroin.  Jordan admitted that he illegally possessed the eleven firearms as well as the drugs, which he intended to further distribute.  Due to a prior drug felony conviction, Jordan was prohibited from possessing a firearm or ammunition under federal law.  The attached photo (Attachment 2), also filed with the Government’s sentencing papers, depicts items seized from Jordan’s residence.

            “Drugs and guns present a potentially lethal combination that will not be tolerated in America’s Finest City” said U.S. Attorney Robert S. Brewer, Jr.  “The U.S. Attorney’s Office is steadfastly committed to protecting our community from the dealers of pernicious drugs that destroy families, wreak havoc on our streets, and provoke fear in our neighborhoods.” 

             The case was prosecuted by Assistant U.S. Attorney Larry Casper.

             The case is the result of the ongoing efforts of the Organized Crime Drug Enforcement Task Force (OCEDTF) a partnership that brings together the combined expertise and unique abilities of federal, state and local law enforcement agencies.  The principal mission of the OCEDTF 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 Number 18-cr-4496                                                

Dwight Wayne Jordan                                                Age: 60                                   San Diego, California

SUMMARY OF CHARGES

Count 1:

Possession With the Intent to Distribute Cocaine Base, Cocaine and Heroin, 21 U.S.C. 841(a)

Maximum penalties: Life in prison, and a mandatory minimum 10 years; $10,000,000 fine; at least five years’ supervised release up to life; Mandatory Special Assessment of $100; Forfeiture

Count 2:

Felon in Possession of a firearm, 18 U.S.C. 922(g)(1)

Maximum penalties: 10 years custody $250,000 fine and 3 years supervised release; Mandatory Special Assessment of $100; Forfeiture

INVESTIGATING AGENCIES

Drug Enforcement Administration

Bureau of Alcohol Tobacco Firearms and Explosives

San Diego Police Department

NEWS RELEASE SUMMARY – February 14, 2019

SAN DIEGO – Jesus Armando Tiznado-Duran, a Mexican citizen, pleaded guilty today in federal court before U.S. Magistrate Judge Andrew G. Schopler to Count 1 of an Information charging him with knowingly and intentionally conspiring with other persons to import approximately 5705.60 kilograms (12,552.32 pounds) of marijuana.

Through his plea agreement, Tiznado-Duran, a Tijuana, Mexico resident and professional truck driver, admitted that on November 6, 2018 he was dispatched by his employer with an empty trailer to a plastics company in Tijuana to pick up a shipment slated for delivery in the United States. Tiznado-Duran deviated from the route he was supposed to take and stopped at a predetermined location in Mexico, where his trailer was loaded with more than 6 tons of marijuana and approximately 15.54 kilograms (34.19) of heroin. Tiznado-Duran then delivered the trailer to another truck driver who was scheduled to drive the shipment of plastics from Tijuana, Mexico into the United States. When that truck driver drove the trailer into the United States at the Otay Mesa, California Port of Entry and presented an invoice listing the contents of the trailer as “plastic fittings,” Customs and Border Protection officials inspected the trailer and discovered it contained marijuana and heroin.

The federal narcotics charge to which Tiznado-Duran has pleaded guilty carries a mandatory minimum ten year sentence and a maximum life.  Tiznado-Duran is scheduled to be sentenced on May 6, 2019 before U.S. District Judge Barry Ted Moskowitz in San Diego.

DEFENDANT                                                Case Number 18cr5231-BTM                                 

Jesus Armando Tiznado-Duran                   Age: 28                       Tijuana, MX

SUMMARY OF CHARGES

Conspiracy to Import a Controlled Substance – Title 21, U.S.C., Sections 952, 960, and 963

Maximum penalty: life imprisonment, and a mandatory minimum 10 years; $10,000,000 fine, and at least five years’ supervised release up to life.

AGENCY

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. Attorney Dylan M. Aste (619) 546-7621

NEWS RELEASE SUMMARY – February 13, 2019

Two San Diego physical therapy clinics and their owners have paid $450,000 to resolve allegations that they fraudulently billed military healthcare provider TRICARE for medical services that were supposedly performed by qualified medical doctors, but were actually provided by unqualified and unauthorized employees.

South Bay Physical Medicine, Inc. and Direct Health Medical Center, Inc. d/b/a San Diego Spine and Rehabilitation were physical therapy clinics.  Brett Allan, Sr., Brett Allan, Jr. and Jeff Allan owned the clinics. 

TRICARE is the health care program for uniformed service members, retirees, and their families. TRICARE specifically limits billing privileges to enrolled providers for a variety of reasons, including the safety of patients. Some incidental services rendered by non-authorized providers can be billed as “incident to” the services of an enrolled physician, but only under rare circumstances and when the physician provides direct supervision.  The United States alleged that the Allans violated the False Claims Act by billing TRICARE for physical therapy services provided solely by unqualified and unauthorized personnel and without the necessary physician supervision. 

“The United States Attorney’s Office works hard to safeguard the integrity of the TRICARE program and the safety of our soldiers and their family members,” said U.S. Attorney Robert Brewer.  “Health care fraud hurts the entire health care system, from taxpayers down to honest providers and innocent patients. We are committed to using all available remedies, both civil and criminal, to combat health care fraud.”

“The announced resolution is a significant victory because the integrity of the U.S. military's health care program is of utmost importance to our military personnel and their families,” said Bryan D. Denny, Special Agent in Charge of the Defense Criminal Investigative Service, Western Field Office.  “DCIS remains committed to working with its law enforcement partners and the U.S. Attorney's Office to combat health care fraud and, more specifically, bring to justice those who seek to defraud the military health care system.”

“When health care providers participate in fraudulent billing schemes in order to increase profits, they steal from the pockets of the taxpayer and jeopardize federal healthcare programs,” said John Brown, FBI Special Agent in Charge. “San Diego is a military town and military personnel represent a large part of our community. It goes without saying that the FBI is committed to working with our partners to aggressively investigate health care providers that defraud the DoD, in order to preserve American taxpayer dollars intended to care for our Warfighters, their family members, and military retirees.”

The Government’s resolution of this matter illustrates its emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, and abuse can be reported at https://www.tricare.mil/ContactUs/ReportFraudAbuse.

This matter was handled by Assistant U.S. Attorney Dylan M. Aste of the U.S. Attorney’s Office for the Southern District of California, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the Defense Health Agency Program Integrity Office.

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

Assistant U. S. Attorney Joseph Price (619) 546-7642

NEWS RELEASE SUMMARY –  February 11, 2019

SAN DIEGO – GenomeDx Biosciences Corp. (“GenomeDx”) has agreed to pay $1.99 million to resolve allegations that it violated the False Claims Act, 31 U.S.C. §§ 3729 et seq., by submitting false claims to Medicare for its “Decipher®” post-operative genetic test for prostate cancer patients. GenomeDx is a genomic testing company with operations based in San Diego and headquarters in Vancouver, British Columbia.

The United States alleged that GenomeDx submitted claims to Medicare between September 2015 and June 2017 for the Decipher test that were not medically reasonable and necessary because the prostate cancer patients did not have risk factors necessitating the test, namely pathological stage T2 disease with a positive surgical margin, pathological stage T3 disease, or rising Prostate-Specific Antigen (“PSA”) levels after an initial PSA nadir. 

“The Department of Justice is committed to ensuring that Medicare patients only receive laboratory testing that is reasonable and necessary for the individual patient,” said Assistant Attorney General Joseph A. Hunt.  “Medically unnecessary and unproven testing increases costs for federal health care programs and is not in the interest of patients.”

“As this settlement demonstrates, we are committed to protecting the integrity of the Medicare program and will hold health care providers accountable under the False Claims Act when they engage in improper billing,” said Robert S. Brewer, Jr., United States Attorney for the Southern District of California. “This settlement is also another example of our commitment to vigorously investigate cases brought to our attention by whistleblowers. We commend the two employees of GenomeDx who had the courage to come forward and work with investigators.”

“Lab tests and other medical services should only be conducted or provided when medically necessary,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services.  “Whistleblowers play a critical role in keeping entities honest and accountable, and are encouraged to report suspected waste, fraud and abuse by those billing federal healthcare programs.”

“The message is clear, if you take advantage of programs like Medicare, you will be held accountable,” said John Brown, FBI Special Agent-in-Charge.  “Companies who engage in filing false claims to generate more corporate revenue are not only stealing from the federal taxpayer, but also from people who rely on federally funded programs for their health care needs.”

The False Claims Act allegations being resolved were originally brought in a lawsuit filed by two former employees of Genome DX, Stephanie LaFleur and Corrine Vause, under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of fraud against the government to bring suit on behalf of the government and to share in any recovery. The whistleblowers will receive approximately $350,000 of the settlement proceeds of $1,990,380. 

The investigation was conducted by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Southern District of California, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. 

The case is captioned United States ex rel. La Fleur et al. v. GenomeDX Biosciences Corp., No. 17-CV-1959 (S.D. Cal.).  The claims resolved by the settlement are allegations only, and there has been no determination of liability.

DEFENDANT

Civil Case No. 17CV1959

GenomeDX Biosciences Corp.                      San Diego, California

 

The Justice Department announced today that GenomeDx Biosciences Corp. (GenomeDx) has agreed to pay $1.99 million to resolve allegations that it violated the False Claims Act, 31 U.S.C. §§ 3729 et seq., by submitting claims to Medicare for the Decipher® post-operative genetic test for prostate cancer patients.  GenomeDx is a genetic testing laboratory headquartered in Vancouver, British Columbia, with operations based in San Diego. 

“The Department of Justice is committed to ensuring that Medicare reimburses costs for laboratory testing that are reasonable and necessary for the individual patient,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division.  “Medically unnecessary and unproven testing increases costs for federal health care programs.”

The United States alleged that GenomeDx knowingly submitted claims for the Decipher test to Medicare between September 2015 and June 2017 that were not medically reasonable and necessary because the prostate cancer patients did not have risk factors necessitating the test, including pathological stage T2 disease with a positive surgical margin, pathological stage T3 disease or rising Prostate-Specific Antigen (PSA”) levels after an initial PSA nadir.

“As this settlement demonstrates, we are committed to protecting the integrity of the Medicare program and will hold health care providers accountable under the False Claims Act when they engage in improper billing,” said Robert S. Brewer, Jr., United States Attorney for the Southern District of California. “This settlement is also another example of our commitment to vigorously investigate cases brought to our attention by whistleblowers. We commend the two employees of GenomeDx who had the courage to come forward and work with investigators.”

“Lab tests and other medical services should only be conducted or provided when medically necessary,” said Christian J. Schrank, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services.  “Whistleblowers play a critical role in keeping entities honest and accountable, and are encouraged to report suspected waste, fraud and abuse by those billing federal healthcare programs.”

“The message is clear, if you take advantage of programs like Medicare, you will be held accountable,” said John Brown, FBI Special Agent in Charge of the San Diego Field Office.  “Companies who engage in filing false claims to generate more corporate revenue are not only stealing from the federal taxpayer, but also from people who rely on federally funded programs for their health care needs.”

The settlement resolves allegations originally brought in a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery.  The whistleblowers will receive $348,316.50 from the False Claims Act recovery. 

The investigation was conducted by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Southern District of California, the Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation. 

The case is captioned United States ex rel. La Fleur et al. v. GenomeDX Biosciences Corp., No. 17-CV-1959 (S.D. Cal.).  The claims resolved by the settlement are allegations only, and there has been no determination of liability.

Assistant U.S. Attorney Janet Cabral (619) 546-8715

NEWS RELEASE SUMMARY – February 11, 2019

SAN DIEGO – Former San Diego Unified School District teacher David Gordon Weaks was sentenced today to 70 months in prison following his guilty plea to one count of receipt of images of minors engaged in sexually explicit conduct.

Weaks was a fifth-grade teacher at Rosa Parks Elementary School up until the time of his arrest. He has been in custody since federal agents executed a search warrant at his home and arrested him on April 19, 2018. Weaks’ term of custody will be followed by an eight-year term of supervised release, including restrictions on his use of the internet.

Weaks, 60, came to the attention of agents from Homeland Security Investigations in early April 2018, when agents found that a computer associated with Weaks’ residence was making files of child pornography available for downloading by others through a publicly available peer to peer file sharing network. Analysis of the devices seized from Weaks’ residence at the time of the April 19, 2018, search warrant, revealed that child pornography files were found on a desktop computer, two laptop computers and a backup hard drive.

DEFENDANT                                               Criminal Case No. 18cr2469-LAB

David Gordon Weaks             Age: 60                       San Diego, CA

SUMMARY OF CHARGE

Title 18, United States Code, Section 2252(a)(2) – Receipt of Images of Minors Engaged in Sexually Explicit Conduct

Maximum penalties: 20 years in prison (with a mandatory minimum of 5 years in prison); $250,000 fine; Mandatory Special Assessment of $100; Special Assessment of $5,000 under Justice for Victims of Trafficking Act of 2015; Restitution; Forfeiture

INVESTIGATING AGENCIES

Homeland Security Investigations

Assistant U.S. Attorneys Ryan Sausedo (619) 546-9689 and Katherine McGrath (619) 546-9054

SAN DIEGO – John Leland Combs was sentenced to 30 months in prison today for assaulting a U.S. Border Patrol agent by speeding away in a stolen car while the agent was leaning inside the driver’s window, and then leading Border Patrol agents on a high-speed chase on State Route 94, endangering everyone on the road that morning. 

Combs was convicted by a federal jury on November 6, 2018 of assault on a federal officer and high speed flight from a checkpoint.

According to evidence presented at trial, the assault occurred during the early morning hours of September 2, 2017. Agent Norberto M. Ribac was assigned to the Brown Field Border Patrol Station All-Terrain Vehicle (ATV) Unit patrolling in the area of Tecate, California. At approximately 5:40 a.m., Agent Ribac discovered northbound shoeprints in the sand approximately 300 yards west of the Tecate Port of Entry. Agent Ribac followed the footprints to Industrial Road, where he discovered Combs standing next to his car, a stolen Hyundai Genesis, and talking on his cell phone, mere yards north of the border fence in Tecate. 

Agent Ribac approached Combs and asked him if there was anything or anyone in the car. Combs said he was alone and voluntarily opened the trunk of the car for Agent Ribac to inspect. As Agent Ribac requested registration and records checks for the car, Combs got inside the car in an apparent attempt to leave the area. When Agent Ribac reached into the car through the driver’s side window to turn the engine off, Combs sped off. While Agent Ribac was attempting to free himself from the moving car, the car struck him on his right elbow and on the right side of his head, breaking his ATV helmet.

In an attempt to flee the State Route 94 Checkpoint, Combs hit speeds over 70 mph while swerving in and out of traffic on a winding two-lane highway. As Combs veered over the cone lane and into the eastbound lane of the checkpoint, video footage showed the agents successfully deploying spike strips. Combs eventually lost control of the car and swerved into a residential driveway. He attempted to flee on foot, but was quickly arrested.

“Agent Ribac put his life on the line to keep our community safe,” said U.S. Attorney Robert Brewer. “I’m very glad it’s the defendant, and not the brave agent, who is paying the price for this audacious crime. We will use our legal arsenal to vigorously prosecute those who assault dedicated U.S. Border Patrol agents and endanger the public with dangerous escape attempts.”

“We are grateful to the U.S. Attorney’s Office for their tenacity and professionalism in presenting a strong case in support of our agent,” said San Diego Sector Chief Patrol Agent Rodney Scott. “The community in which we serve has spoken in favor of law and order, and every agent in this Sector appreciates the support as we work to provide a secure border.”

The case was prosecuted by Assistant United States Attorneys Ryan Sausedo and Katherine McGrath.

DEFENDANT                                                           Case No. 17cr3026-CAB

John Leland Combs                           

SUMMARY OF CHARGES

Assault on a Federal Officer, in violation of 18 U.S.C. § 111

Maximum Penalty: 12 months’ prison, $100,000 fine; 1 year supervised release

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

Maximum Penalty: 5 years’ prison, $250,000 fine; 3 years’ supervised release

AGENCIES

Department of Homeland Security, Border Patrol Intelligence

U.S. Border Patrol

 

Assistant U.S. Attorneys Mark W. Pletcher (619) 546-9714, Robert Huie (619) 546-7053 and Patrick Hovakimian (619) 546-9718

NEWS RELEASE SUMMARY – February 8, 2019

SAN DIEGO – Former U.S. Navy Captain Jeffrey Breslau, previously the director of public affairs for the U.S. Pacific Fleet, was sentenced in federal court today to six months in custody for secretly moonlighting as a paid public relations consultant for foreign defense contractor Leonard Glenn Francis.

U.S. District Judge Janis L. Sammartino also fined Breslau $20,000, ordered him to perform 250 hours of community service, and ordered Breslau to pay $65,000 in restitution to the Navy – the amount Francis paid the Navy Captain for insider advice that helped the contractor build a business empire that cost the Navy tens of millions of dollars.

According to the government’s sentencing memorandum, Breslau authored emails and provided talking points for Francis to create relationships with five Navy admirals and win or maintain lucrative Navy contracts for his Singapore-based ship husbanding company, Glenn Defense Marine Asia (GDMA).

Breslau, 52, of Cumming, Georgia, was charged in September 2018 and pleaded guilty in November to one count of criminal conflict of interest, admitting that while he was still employed by the U.S. Navy, Francis paid him more than $65,000 for the public relations consulting services.  Francis pleaded guilty in 2015 to bribery and fraud charges, admitting that he presided over a massive, decade-long conspiracy involving scores of U.S. Navy officials, tens of millions of dollars in fraud and millions of dollars in bribes and lavish gifts, including luxury travel, airline upgrades, five-star hotel accommodations, top-shelf alcohol, the services of prostitutes, Cuban cigars, Kobe beef, and Spanish suckling pigs.

Breslau pleaded guilty to a conflict of interest charge.  The essence of his crime, prosecutors said, was the prolific use of his specialized skills and privileged position, bestowed upon him by the U.S. Navy, for GDMA’s benefit. “Simply put,” the sentencing memo said, “the defendant sold his fiduciary alliance for $65,000.”

“Breslau was secretly advocating for Leonard Francis behind the backs of his Navy colleagues,” said U.S. Attorney Robert S. Brewer Jr. “Breslau’s deceit was part of an astounding culture of corruption that has been exposed and eliminated as a result of this historic investigation.”

According to admissions made as part of his guilty plea, from October 2009 until July 2012, Breslau was a Captain in the U.S. Navy assigned as Director of Public Affairs for the U.S. Pacific Fleet, headquartered in Pearl Harbor, Hawaii.  As part of his duties, Breslau was involved in devising the U.S. Navy’s public affairs communications strategy, and provided public affairs guidance to Pacific Fleet components and other U.S. Navy commands.  From August 2012 until July 2014, Breslau was assigned to the Commanding Officer for the Joint Public Affairs Support Element in Norfolk, Virginia, where he was responsible for leading joint crisis communications teams. 

Breslau admitted in his plea agreement that from March 2012 until September 2013, while serving in the above roles for the U.S. Navy, he provided Leonard Francis with public relations consulting services, including providing advice on how to respond to issues and controversies related to Francis’s ship husbanding business with the U.S. Navy.  These included issues related to port visit costs, allegations of malfeasance such as the unauthorized dumping of waste, disputes with competitors, and issues with Pacific Fleet and contracting personnel.

During the course of his consulting agreement with Francis, Breslau authored, reviewed, or edited at least 33 separate documents; authored at least 135 emails providing advice to Francis; provided at least 14 instances of “talking points” in advance of meetings between Francis and high ranking U.S. Navy personnel; and “ghostwrote” numerous emails on Francis’s behalf to be transmitted to U.S. Navy personnel.  During the course of this consulting agreement, Breslau accepted approximately $65,000 from Francis without disclosing the agreement to the U.S. Navy.

In one email exchange with Francis, Breslau described himself as Francis’ “priest” because of the confidential nature of the relationship.  In another email, Breslau urged Francis to be discreet in his communications with other Navy officers: “Hope I was blind copied on the note below. Important to not compromise me even to your closest Navy brothers.” Francis replied, “Rest assured your identity is protected.”

In another email, Francis praised Breslau; “I like your ghost writing it truly helps me.” Breslau replied, “Thanks for the compliment with regard to the ghost emails. Glad to help.”

Prosecutors argued that Breslau should serve time in custody for the conflict of interest charge, in part because his deception had a significant impact on the Navy. “The breadth and scope of defendant’s willful illegal conduct in providing consulting services to Francis – in each instance assisting Francis against the U.S. Navy – substantially disrupted the functions of the U.S. Navy,” prosecutors wrote in the sentencing memo.

“In nearly every instance, defendant’s work consisted of advocating for Francis and against the U.S. Navy, against its officers, against its senior civilian leaders, and against its enlisted sailors,” the sentencing memo said.

Breslau is the 18th current or former U.S. Navy official to plead guilty in the expansive corruption and fraud investigation involving Francis and GDMA. So far, 33 defendants have been charged in the U.S. and 22 have pleaded guilty.

The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher, Robert Huie, and Patrick Hovakimian of the Southern District of California and Assistant Chief Brian R. Young of the Fraud Section of the Justice Department’s Criminal Division.                  

DEFENDANT                                              Case Number: 18-CR4208                  

Captain (retired) Jeffrey Breslau                  Age: 52          Cumming, Georgia

SUMMARY OF CHARGES

Conflict of Interest, in violation of 18 U.S.C. § § 208(a), 216

Maximum Penalty: 5 years in prison, a $250,000 fine

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Defense Contract Audit Agency

 

 

 

 

 

Assistant U.S. Attorneys Alessandra P. Serano (202) 252-5843 or Joseph Orabona (619) 546-7951    

NEWS RELEASE SUMMARY – February 4, 2019

SAN DIEGO – Westside Crips gang member William McKinley Bright today became the last of 12 defendants to plead guilty, admitting that he participated in a racketeering conspiracy involving narcotics trafficking, sex trafficking and other violent crimes.

Bright, aka “Slim,” admitted to his membership and association with the Westside Crips, which primarily operated in Oceanside. Sentencing for Bright is scheduled for May 3, 2019. 

In furtherance of the RICO conspiracy, Bright admitted he engaged in multiple narcotics transactions at a local hotel in Oceanside as well as other places in San Diego and Vista, in order to promote the Westside Crips.  Bright admittedly sold gram-quantities of methamphetamine between October 2014 and May 2015.  Bright also acknowledged that he was an active and productive member of the Westside Crips who promoted the gang through use of social media as well as wearing gang colors and displaying gang signs. Bright admitted that the conspiracy in which he was involved resulted in the distribution of at least 150 grams but less than 500 grams of methamphetamine in San Diego County. 

In 2017 and 2018, Bright’s coconspirators pleaded guilty to RICO conspiracy. They include: Corey Deshawn Austin (aka “Westwood”), Ameer Fareed Roby (aka “Tiny Dum Dum”), Michael Anthony Sullivan (aka “Du-Low”), Peter Andrew Miranda (aka “Fat Boy,” “Baby Rocks,” and “Lil’ Burger”), Shane Robert Anderson (aka “Tiny Westwood”), Jasiri Malcolm Lacey (aka “Baby Westwood”), Demetrius Montre McFarland (aka Mechii Ruu”),  Travion McHenry (aka “Too Much”), Richard Cleveland (aka “Face”), Larry Darnell Monroe, and Umesh Oza (aka “Kevin”) pleaded guilty to RICO conspiracy. All but Corey Deshawn Austin were sentenced to terms of imprisonment ranging from 4 months to 180 months.  Austin is scheduled to be sentenced on March 1, 2019.

“Because of the diligence of investigators and prosecutors, a dozen violent gang members are in prison and no longer a threat to our communities,” said U.S. Attorney Robert S. Brewer Jr., who praised the efforts of multiple agencies who worked together for maximum impact. “We will use all of our legal resources to release our neighborhoods from the grips of gangs that peddle drugs and violence.”

 “Drugs corrupt. Corruption leads to addiction, greed and violence. Utilizing one of the USA’s most powerful tools against violent criminal organizations like the Westside Crips, a RICO conspiracy, united law enforcement agencies banish and destroy whole organizations,” said DEA Special Agent in Charge Karen Flowers. “It isn’t easy, it isn’t quick and it takes an incredible amount of work. But, it is the strongest message that can be sent to organized crime.  It might not be today or tomorrow, but we are relentless.  We will come for you and when you are gone, our streets will be safer and our communities stronger.”

“The guilty plea announced today provides a window into a criminal enterprise that appeared willing to do anything and everything illegal to make a profit,” stated IRS Acting Special Agent in Charge Bryant Jackson.  “The role of IRS Criminal Investigation in narcotics and human trafficking investigations is to follow the money so we can financially disrupt and dismantle these major drug trafficking organizations and protect our communities from the violent behavior of these malicious street gangs.”

“The Oceanside Police Department would like to thank the U.S. Attorney's Office and other law enforcement agencies for their collaboration and hard work during this operation.  It is collective efforts like this that highlight why the San Diego region is a model for other law enforcement agencies to emulate, to keep their communities safe,” said Oceanside Police Chief Frank McCoy.

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 Number 17cr0270-JAH                                              

William McKinley Bright, aka “Slim”           Age: 53                       Oceanside, CA

SUMMARY OF CHARGES

Title 18, United States Code, Section 1962(d) - Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity; Title 18, United States Code, Section 1963 - Criminal Forfeiture Maximum Penalties: 20 years’ incarceration, a fine of $250,000, three years of supervised release

AGENCIES

North County Narcotics Task Force

Drug Enforcement Administration

Oceanside Police Department

Internal Revenue Service

 

Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924 and Assistant U.S. Attorney Matthew C. Brehm (619) 546-8983

NEWS RELEASE SUMMARY – January 28, 2019

SAN DIEGO – Michael Vanden Brink of Oceanside was sentenced by U.S. District Judge John A. Houston today to eight months in federal prison for stealing over $145,000 in benefits intended for the widow of a military veteran.

At the time of his guilty plea on September 5, 2018, Brink admitted that after the widow’s death in 2004, he converted her Department of Veterans Affairs benefits to his own use.  Brink further acknowledged that he knew that he was not entitled to the victim’s benefits, and that he knew the money deposited into the widow’s bank account (over which he had control) rightfully belonged to the United States.  But rather than notifying the bank that the widow had died, he used the funds to pay for his own personal expenses, ultimately converting a total of $145,035 in Veterans Affairs money to his own use.

U.S. Attorney Robert S. Brewer commended prosecutors and the Criminal Investigators Division of the Department of Veterans Affairs Office of Inspector General, for their hard work on the case.

“The United States Attorney’s Office is committed to protecting the integrity of the Department of Veterans Affairs and the benefits it provides,” Brewer said. “The prison sentence imposed in this case is an appropriate punishment for someone who, for more than a decade, stole taxpayer money intended for our nation’s veterans and their families.”

In addition to his prison sentence, Judge Houston ordered Brink to serve three years on supervised release and to pay $145,035 in restitution to the Department of Veterans Affairs.

DEFENDANT                       Case Number 18-cr-3894-JAH       

Michael Vanden Brink           Oceanside, CA            Age: 57

SUMMARY OF CHARGES

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

Maximum penalty: 10 years’ imprisonment

AGENCIES

U.S. Department of Veterans Affairs, Office of Inspector General – Criminal Investigations Division

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

NEWS RELEASE SUMMARY – January 16, 2019

SAN DIEGO – Earlier this week, federal prosecutors charged two men with Distribution of Fentanyl Resulting in Death.  The charges arise out of a 41 year-old woman’s fatal overdose from fentanyl-laced heroin on October 24, 2018. 

As detailed in the criminal complaint, on October 24, 2018, officers responded to a 911 call regarding the suspected overdose of a San Diego woman identified in court documents as J.C.G.  When officers and paramedics arrived, they attempted CPR without success and pronounced the woman dead.  The complaint alleges that the San Diego County Medical Examiner conducted an examination and confirmed that the woman’s cause of death was a fentanyl and heroin overdose.

The case was immediately assigned to a multi-agency task force, led by the Drug Enforcement Administration, which investigates drug overdose deaths in San Diego County. According to the criminal complaint, within 24 hours of the woman’s death, task force agents and officers traced the fentanyl-laced heroin back to defendant Travis Ray Ballou, who was arrested on October 25, 2018. The complaint alleges that Ballou sold heroin to J.C.G. on three occasions—October 22, 23, and 24.  On October 23, J.C.G. overdosed and went to the hospital, where she was revived with Narcan, an opioid blocker used for the rapid reversal of opioid overdose. The following day, on October 24, J.C.G. told Ballou about overdosing the day before and requested additional heroin, which Ballou supplied.  That evening, J.C.G. overdosed on heroin and fentanyl and died.

Investigators quickly identified defendant Tony Davis as the person who supplied Ballou with heroin and fentanyl. Among other evidence, the complaint quotes a text message that Ballou sent to Davis on October 24, 2018 informing Davis that one of his (Ballou’s) customers – J.C.G. – had overdosed and had to be revived with Narcan, and telling Davis: “your stuff def has fetnal [sic] in it.” During a court-authorized search of Davis’ residence, law enforcement officers found evidence of fentanyl, heroin, cocaine, and methamphetamine, as well as syringes and payment ledgers.

 “As the opioid epidemic continues to rage across the nation, we are committed to doing everything we can to save lives,” said U.S. Attorney Robert Brewer. “That includes investigating overdose deaths as homicides and pursuing charges against dealers of the poison that is killing people every single day in this country.”  According to the San Diego County Medical Examiner, deaths caused by fentanyl analogs more than doubled in San Diego County in 2017, rising from 33 to 84, and the office expects a slight increase in 2018 when pending investigations are finalized.

Task force agents and officers arrested Davis on November 15, 2018.   Defendant Tony Davis made his initial appearance before U.S. Magistrate Judge Linda Lopez on January 15, 2019.  Defendant Travis Ray Ballou is expected to make his initial appearance sometime next week.

This case is being prosecuted by Assistant U.S. Attorneys Stephen Wong and Mikaela Weber.

DEFENDANTS                                     Case Number 19-mj-0142                                              

Tony Davis                 Age: 63

Travis Ray Ballou       Age 40

SUMMARY OF CHARGES

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

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

AGENCIES

San Diego County District Attorney’s Office

Drug Enforcement Administration

San Diego Police Department

San Diego Medical Examiner’s Office

San Diego District Attorney’s Office

Homeland Security Investigations

Department of Health Care Services

Federal Bureau of Investigation

National City Police Department

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

 

 

 

 

 

  

Kelly Thornton (619) 546-9726 or Cindy Cipriani (619) 546-9608

NEWS RELEASE SUMMARY – January 16, 2019

SAN DIEGO – Robert S. Brewer, Jr., a decorated Vietnam War veteran, former prosecutor and prominent San Diego litigator for decades, was sworn in today as the United States Attorney for the Southern District of California by Chief U.S. District Court Judge Barry Ted Moskowitz.

Mr. Brewer took the oath of office in federal court this morning before an audience that included family members, lifelong friends, members of the legal community, judges and staff from the court and the U.S. Attorney’s Office. As the United States Attorney, Mr. Brewer is the chief federal law enforcement officer responsible for prosecuting and defending the interests of the United States in one of the busiest judicial districts in the nation.

“It is one of my life’s great honors to serve as the United States Attorney for the Southern District of California,” Mr. Brewer said in a statement. “I am committed to fairness, equality, justice and above all the rule of law. I will draw on my valuable life experiences to uphold these principles and protect our community and our border.  It will be a privilege to work with the skillful and dedicated attorneys and staff in the office.  I also want to highly commend Adam Braverman who served as U.S. Attorney for the past 14 months and Alana Robinson who served as U.S. Attorney from January to November 2017.  Both served with distinction and brought great credit to the office.”

President Trump nominated Mr. Brewer to serve as U.S. Attorney for this district on June 25, 2018, upon the recommendation of U.S. Senators Kamala Harris and Dianne Feinstein. The full Senate unanimously confirmed his appointment on January 2, 2019.

During today’s swearing in, Judge Moskowitz noted Mr. Brewer’s many contributions to his country and  community – from heroic actions as a combat veteran in Vietnam to volunteer work for the American Red Cross, the San Diego Humane Society and Canine Companions for Independence.

He also praised Mr. Brewer’s legal accomplishments. “I’ve known Bob Brewer for 33 years,” Judge Moskowitz said. “He is one of the five best lawyers I have ever met.”

Until recently, Mr. Brewer, a native of Ithaca, New York, was a litigation attorney at Seltzer Caplan McMahon Vitek. He previously served as a Deputy District Attorney in Los Angeles County from 1975 to 1977, and as an Assistant United States Attorney in the Central District of California from 1977 to 1982, where he successfully prosecuted a variety of cases including espionage, bank robbery, murder for hire and aircraft hijacking. He also held various management positions, including Assistant Chief of the Criminal Division.  He received the Attorney General’s Commendation Award in 1981.

From 1982 through the present, Mr. Brewer has been in private practice, including from 1991 to 2009 as a partner at McKenna Long & Aldridge LLP, and from 2009 to 2014 as a partner at Jones Day. Before attending law school, Mr. Brewer served in the United States Army as an Airborne Ranger Infantry Officer and received the Silver Star and two Bronze Stars for his combat service in the Vietnam War. Mr. Brewer has been a Fellow in the American College of Trial Lawyers since 1999.  He received the Daniel T. Broderick Award from the San Diego County Bar Association in 2009 and the Distinguished Graduate Award from the University of San Diego School of Law in 2016.  Mr. Brewer earned his B.A. from St. Lawrence University, and his J.D. from the University of San Diego School of Law.

Brewer is married to retired U.S. District Judge Irma Gonzalez, the nation’s first Mexican-American female federal judge.

Because of the lapse in appropriations, information about possible media availability will be provided at the conclusion of the government shutdown.

NEWS RELEASE SUMMARY – January 8, 2019

SAN DIEGO – Today, federal prosecutors filed drug trafficking charges against four individuals following a successful undercover operation in which agents acquired over 10,000 potentially deadly fentanyl pills that were smuggled through San Diego Ports of Entry.  In a separate matter, a local San Diego defendant was charged with distributing fentanyl that resulted in the July 18, 2018 death of a San Diego resident.

According to the pill ring trafficking complaint, in December 2018, federal undercover agents negotiated with a known drug trafficker based in Tijuana to purchase approximately 4,000 fentanyl pills for $24,000. Following that conversation, the trafficker arranged for defendants to smuggle fentanyl pills through the San Diego Ports of Entry.  On January 7, 2019, defendant Dianna Dominguez arrived in a vehicle with defendants Felix Inzunza-Dominguez, Jr. and Norma Macias-Dominguez.  Inzunza-Dominguez., Jr. eventually exited the vehicle with a bag and headed to the nearby Frye’s parking lot, where he delivered about 4,000 fentanyl pills to an undercover agent, expecting to receive $24,000.  As alleged in the complaint, the bag also contained two condoms, believed to be the smugglers’ method of concealing the fentanyl as they entered the United States.  Defendants Macias-Dominguez and Inzunza-Dominguez, Jr. had previously each delivered 1,000 fentanyl pills to an undercover agent, in exchange for $8,000 per transaction. 

Following the above incident, the undercover agent told the trafficker in Mexico that he did not receive the fentanyl pills and requested another 2,000 fentanyl pills. According to the complaint, after that exchange, defendant Tanairi Ponce placed 2,000 fentanyl pills in her bra, crossed the border, and delivered 2,000 pills to the agent, at which point she was arrested.

The Drug Enforcement Administration, Homeland Security Investigations, and the San Diego Sheriff’s Office assisted in the undercover investigation targeting the fentanyl smuggling ring. 

Following their arraignment this afternoon before Judge Michael Berg, all four defendants entered not guilty pleas. The court scheduled their detention hearing on January 11, 2019 at 10:30 a.m.    

In a separate action, defendant Christopher James Stracuzzi was arraigned today in federal court on the charge of distributing fentanyl resulting in death.  The federal complaint was unsealed in federal court following his afternoon arraignment before Judge Michael Berg.  The complaint alleges that on July 18, 2018, at approximately 8:43 p.m., the San Diego Police Department ("SDPD") received a 911 call in reference to an unconscious male who was laying on the floor in his apartment, unresponsive. Paramedics arrived on scene and unsuccessfully attempted resuscitation.  The individual was pronounced deceased at 9:12 p.m.

The deceased’s roommate later advised investigators that Stracuzzi sold the deceased 12 tablets, which the roommate believed were oxycodone pills.  They both took one and fell asleep.  After learning from the Medical Examiner's Office that her roommate had died of a fentanyl overdose, she suspected the oxycodone (Percocet) tablets were counterfeit pills containing fentanyl.  She gave agents the remaining 10 tablets, which the DEA Southwest Regional Laboratory analyzed and found to contain fentanyl. 

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

 Stracuzzi entered a not guilty plea, following his arraignment this afternoon, before Judge Michael Berg and is scheduled for a detention hearing on January 11, 2019 at 10:30 a.m.     

“When drug traffickers smuggle or distribute black market pills laced with fentanyl, they are inviting buyers to play Russian roulette with their lives,” said Adam L. Braverman, United States Attorney for the Southern District of California. “Stopping the importation and sale of these exceedingly dangerous pills remains one of the Department’s most important priorities. We won’t rest until we take every pill and every dealer off the street.”

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

“DEA continues to encounter an alarming amount of counterfeit pills laced with fentanyl in San Diego County – pills that look exactly like legitimate prescription pills,” said DEA Special Agent in Charge Karen Flowers.  “If you didn’t obtain the prescription pill from an authorized medical practitioner, you are playing Russian roulette.   Fentanyl is deadly.  Don’t wait to learn the lesson from the Medical Examiner.”

These cases are being prosecuted by Assistant United States Attorney Sherri Walker Hobson.

 

 

DEFENDANTS                                             Case Number 19 MJ 0071

Dianna Dominguez (San Diego)

Felix Inzunza-Dominguez, Jr.   (Tijuana)

Norma Macias-Dominguez  (Tijuana)

Tanairi Ponce (Tijuana)

SUMMARY OF CHARGES

Title 21 U.S.C. Section 841(a)(1) Possession of a Controlled Substance with Intent to Distribute

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

DEFENDANT                                                Case Number 19 MJ 0049

Christopher James Stracuzzi  (San Diego)

SUMMARY OF CHARGES

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

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

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

AGENCIES

Drug Enforcement Administration

Homeland Security Investigations

San Diego Sheriff’s Office

San Diego Police Department

Federal Bureau of Investigation

Department of Health Care Services  

NEWS RELEASE SUMMARY – December 18, 2018

SAN DIEGO - Federal judges sentenced four defendants -- Kenneth Bigler, Jospeh DeLeon, Denziel Buirke, and Karl Kenneth Abbott -- in separate Project Safe Childhood (PSC) criminal matters to significant time in custody yesterday, recognizing the gravity, irreparable harm and heinous nature of sexual offenses that victimize society’s most vulnerable citizens, our children.

“One of the Department’s most critical missions is protecting vulnerable children who cannot defend themselves,” said U.S. Attorney Adam L. Braverman.  “These sentences send a strong message that dangerous sexual predators will be placed under lock and key for as long as necessary to protect our children.”

“With today's sentencings, a voice was given to the most defenseless members of our society.  Protecting our children from sexual predators is a priority for the FBI,” said FBI Special Agent in Charge John Brown. “The FBI will continue to work with our law enforcement partners here and abroad, to protect our world's children from those who would seek to exploit their innocence.”

“Recent cases demonstrate there remains an urgent need to warn parents about the extraordinary risks that sexual predators pose to children.  Especially on the Internet, children are most vulnerable to victimization by people they mistakenly trust,” said Dave Shaw, HSI Special Agent in Charge in San Diego. “Those who engage in this criminal behavior should be forewarned that HSI, along with our law enforcement partners, will use every tool at our disposal to end the sexual exploitation of children and keep our children safe, whether they are around the block or around the world."

DEFENDANT                                                Criminal Case No. 17CR2509-JAH

Kenneth Bigler           Age: 54                      Walnut, CA

Kenneth Bigler was sentenced to 210 months in custody following his guilty plea to one count of Attempted Sexual Exploitation of a Child, in violation of 18 U.S.C § 2251(c) & (e). Bigler has been in federal custody since his arrest on August 14, 2017. Bigler’s term of custody will be followed by a 10-year term of supervised release.

According to public records, FBI agents conducting an investigation of Bigler discovered multiple electronic communications between Bigler and an individual in Mexico. Bigler and the individual were attempting to arrange meetings in Mexico, during which Bigler intended to engage in sexual activity with minors. In the communications, Bigler requested that the individual provide minors as young as eight years old to engage in sexual activity with Bigler in Mexico. When interviewed by the FBI, Bigler admitted to traveling to Mexico on multiple occasions, hoping to engage in sexually explicit conduct with minors. Bigler also admitted to agents that he engaged in sexual activity in Mexico with girls between 14 and 16 years old. Forensic analysis of digital and computer media possessed by Bigler revealed multiple videos, created by Bigler in Mexico, which depicted Bigler engaged in sexually explicit conduct with an apparent minor. Bigler then transported those videos through the Southern District of California to his residence in the Central District of California.

During the sentencing hearing, U.S. District Judge John A. Houston expressed concern about Bigler’s prior criminal history, which included multiple convictions for indecent exposure, and Bigler’s status as a registered sex offender at the time the current offense was committed. Judge Houston admonished Bigler that it seemed his prior convictions had not “tempered his treatment of young people” and emphasized his concern about the gravity of Bigler’s “extensive criminal conduct.” 

This matter is being prosecuted by Special Assistant U.S. Attorney Renee Green.

DEFENDANT                                                Criminal Case No. 17CR2509-JAH

Joseph DeLeon Cruz  Age: 58                      San Diego, CA

Joseph DeLeon Cruz was sentenced to 60 months in custody following his guilty plea to one count of Receipt of Images of Minors Engaged in Sexually Explicit Conduct, in violation of 18 U.S.C. § 2252(a)(2). Cruz has been in federal custody since his arrest on April 2, 2018. Cruz’s term of custody will be followed by a 7-year term of supervised release.

According to the public record, on or before June 2, 2016, Cruz used a publicly available peer-to-peer file-sharing torrent program to receive digital files of visual depictions of minors engaged in sexually explicit conduct via the internet. The peer-to-peer file-sharing torrent program made those same files available for download by other users of the program. On four occasions between May 24 and June 2, 2016, a FBI agent obtained multiple complete files directly and solely from Cruz’s computer within his residence and they depicted images of prepubescent females engaging in sexually explicit conduct. Agents seized multiple items of digital evidence from Cruz’s residence pursuant to a federal search warrant. Upon forensic analysis, thousands of images and videos of minors, including prepubescent minors, engaging in sexually explicit conduct were found on two different devices (a hard drive and a laptop computer) seized from Cruz’s bedroom. In addition, multiple files indicating use of file-sharing software, or torrents, were found on Cruz’s laptop computer.

This matter is being prosecuted by Special Assistant U.S. Attorney Renee Green.       

DEFENDANT                                                Criminal Case No. 17cr2678-BEN

Denziel S. Burke                 Age: 20               El Cajon, CA

U.S. District Court Judge Roger T. Benitez sentenced Denziel S. Burke to 112 months in custody and five years of supervised release for sex trafficking of a minor. Burke previously pled guilty to trafficking a fourteen year-old minor female, admitting that he arranged for her to have commercial sex ads placed on backpage.com, a site commonly used for advertising commercial sex. Over the course of two days, Burke drove his victim to multiple locations throughout the Southern District of California where he arranged for her to perform commercial sex acts on unknown males. 

Burke directly arranged the commercial sex acts by text messaging with potential clients, determining the client’s address, and driving the minor female victim to the location of the client.  Burke admitted that he knew the victim was 14 years-old at the time he was transporting, harboring, and maintaining her for the purpose of performing commercial sex acts.  When the San Diego Human Trafficking Task Force attempted to arrest Burke on August 8, 2017, he struck an unmarked police vehicle and fled at a high rate of speed.  The San Diego Police Department rescued the minor victim that day, and the United States Marshals Service assisted in locating and arresting Burke two days later. 

In determining his sentence, Judge Benitez noted the irreparable harm caused to the victims of this heinous crime, and acknowledged the need for significant sentences to serve as a deterrent.   

This case is being prosecuted by Assistant U.S. Attorney Eric Roscoe.

DEFENDANT                                                Criminal Case No. 16cr2178-MMA

Karl Kenneth Abbott  Age: 59                      San Diego, CA

Karl Kenneth Abbott was sentenced by U.S. District Judge Michael M. Anello to 78 months in custody following his guilty plea to one count of Receipt of Images of Minors Engaged in Sexually Explicit Conduct, in violation of 18 U.S.C § 2252(a)(2). Abbott’s term of custody will be followed by a 7-year term of supervised release.

Abbott came to the attention of law enforcement due to his use of a publicly available peer-to-peer file-sharing program to receive images and videos of minors engaged in sexually explicit conduct via the internet. The peer-to-peer file-sharing program made those same files available for download by other users of the program, as well as law enforcement. A search warrant was executed at the defendant’s home, and upon forensic analysis of seized items, hundreds of images and videos of minors, including prepubescent minors, engaging in sexually explicit conduct were found on two different seized computer devices.

This matter is being prosecuted by Assistant U.S. Attorney Janet Cabral.

INVESTIGATIVE AGENCIES:

San Diego Internet Crimes Against Children Task Force

San Diego Human Trafficking Task Force

Federal Bureau of Investigation

Homeland Security Investigations

United States Marshals Service

San Diego Police Department

National City Police Department

The San Diego Internet Crimes Against Children Task Force is a national network representing over 4,500 federal, state, and local law enforcement and prosecutorial agencies, all working to combat the sexual exploitation of children through the internet.

The San Diego Human Trafficking Task Force combines the efforts of federal and local law enforcement to ensure that those who seek to do harm to the most vulnerable in our society are brought to justice.

NEWS RELEASE SUMMARY – December 14, 2018

SAN DIEGO – Juan A. Mexicano, aged 33, was sentenced today in federal court by U.S. District Judge Gonzalo P. Curiel to 135 months in custody.  Mexicano previously pled guilty, admitting his role in an expanding cocaine distribution conspiracy, extending from Guatemala and Mexico to San Diego and Chicago, that involved the seizure of grenades, .50 caliber firearms, assault weapons and other firearms.     

In his plea agreement, Mexicano admitted to maintaining a narcotics stash house in Illinois that he used to distribute cocaine from a Mexican-based trafficker, identified in court documents as “El 99”.  Mexicano also acknowledged that he made arrangements to import cocaine through the Southern District of California and that he possessed weapons seized from a storage facility in Illinois.  The weapons included two hand grenades; a grenade launcher; five .50 caliber weapons; one .22 handgun with a silencer; 26 other assault style weapons, including a submachine gun; more than 1,000 rounds of ammunition; and six ballistic vests.  During sentencing, Judge Curiel noted “this catalog of armaments was capable of mass destruction” and that these weapons “evidence[d] the danger to the community that this group of drug traffickers posed to the community in Illinois.” 

Mexicano, who is the fourth defendant to be sentenced in the case, further admitted that the stash house near Chicago was used for the temporary storage of cocaine and acknowledged that up to approximately 150 kilograms (approximately 330 pounds) of cocaine was stored there. 

As part of its sentence, the court credited Mexicano with 15 months, for time served in state custody. Mexicano also faces sentencing on January 4, 2019, in connection with his separate guilty plea to charges in Kane County, Illinois (Case No. 17CF1720) related to the weapons stockpile.

“I am grateful for the efforts of our law enforcement partners to remove these dangerous narcotics and weapons from our communities and out of the hands of violent drug dealers,” said U.S. Attorney Adam Braverman.  “We are committed to stopping the traffickers, whose sole aim is to profit from human misery.”

“Today’s sentencing of Mexicano is the example of the great collaborative effort of law enforcement and prosecutors to bring to justice those who endanger our communities with illicit drugs and dangerous weapons.” said David Shaw, Special Agent in Charge of Homeland Security Investigations in San Diego.  “This investigation demonstrates that these types of criminals, who facilitate the movement of contraband for transnational criminal organizations will be pursued by law enforcement and held accountable for their actions.”

In addition to Mexicano, other defendants who have entered guilty pleas in the federal case are: Walter Rovidio Ipina, aged 40; David Castaneda-Solis, aged 33; Zachary Vasquez, aged 27; and Jacob Castillo, aged 48.  Only Vasquez remains to be sentenced.

Through his plea agreement, Ipina admitted that, during 2016, he moved the cocaine provided by “El 99” through the Southern District of California by using his family owned trucking business’ tractor-trailer to transport the cocaine from Southern California to the Chicago, Illinois area.  In September 2016, he was stopped by law enforcement with 32 kilograms of cocaine.  Ipina was sentenced to 50-months in custody by Judge Curiel on August 3, 2018. 

Castaneda-Solis pleaded guilty to laundering narcotics proceeds.  On August 12, 2016, Castaneda-Solis was caught by law enforcement while he was unloading $154,000 in narcotics proceeds from a hidden compartment in the dashboard of  a Honda Pilot vehicle.  Castaneda-Solis admitted that he placed these proceeds into a black bag for delivery to Mexico.  Castaneda-Solis was sentenced to 70 months in custody by Judge Curiel on October 3, 2018. 

Vasquez pleaded guilty to the cocaine conspiracy and admitted that he served as a narcotics load coordinator/recruiter.  He admitted to coordinating with “El 99” in Mexico.  Vasquez also admitted to recruiting and supervising a driver who smuggled cocaine through the San Ysidro Port of Entry on at least four occasions before that driver was arrested. Vasquez admitted that the scope of his involvement in the conspiracy included trafficking beteween 125 to 150 kilograms of cocaine.  Vasquez is scheduled for sentencing on March 15, 2019.

Castillo-Lopez pleaded guilty to laundering narcotics proceeds. In his plea agreement, he admitted to using bulk currency to purchase trucks and other vehicles that he arranged to export to benefit narcotics traffickers in Guatemala.  Castillo-Lopez was sentenced to 33 months in custody by Judge Curiel on November 2, 2018.

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. Attorney Lawrence A. Casper. 

DEFENDANTS                                  Case Number 17-cr-648                                                                  

Juan A. Mexicano                                           Age: 33                                   Addison, IL

Walter R. Ipina                                               Age: 40                                   Victorville, CA

David Castaneda-Solis                                   Age: 34                                   Mexico

Zachary Vasquez                                            Age: 27                                   Anaheim, CA

Jacob Castillo-Lopez                                      Age: 48                                   Guatemala

SUMMARY OF CHARGES TO WHICH GUILTY PLEAS ENTERED

Mexicano, Ipina & Vasquez

Conspiracy to Unlawfully Distribute Cocaine, 21 U.S.C. §  846

Maximum penalty: Life in prison, and a mandatory minimum 10 years; $10,000,000 fine; and at least five years’ supervised release up to life.

Castaneda-Solis & Castillo-Lopez

Conspiracy to Launder Monetary Instruments, 18 U.S.C. § 1956(h)

Maximum penalty: 20 years custody; 3 years supervised release; and $500,000 fine.

INVESTIGATING AGENCIES

Homeland Security Investigations

Bureau of Alcohol Tobacco Firearms and Explosives

Ventura County, CA Sheriff’s Office

Police Departments of: Elgin, IL; Addison, IL.; Chicago, IL; Hoffman Estates, IL;

New Lenox, IL; Olympia Fields, IL; Streamwood, IL; and Lombard, IL

Sheriff’s Offices of: Kane County, IL; DuPage County, IL; Will County, IL

NEWS RELEASE SUMMARY – December 6, 2018

EL CENTRO, CALIFORNIA –   Today, Jose Guadalupe Aviles-Cordero, 60, was arraigned by Magistrate Judge Ruth Bermudez Montenegro on charges of importing 1,309 pounds of methamphetamine, 9.37 pounds of heroin, and 2.64 pounds of cocaine.  Aviles-Cordero was arrested at the Calexico East Commercial Port of Entry on December 5, 2018. 

According to court records, Aviles-Cordero, a Mexican citizen living in Mexicali, Baja California, was the driver of a tractor pulling an empty trailer as it approached the cargo facility.  U.S. Custom Border & Protection (“CBP”) officers found anomalies in the roof area of the trailer.  Upon further inspection of the roof area, CBP officers discovered 90 packages of methamphetamine with a weight of 1,309 pounds, multiple packages of heroin with a weight of 9.37 pounds, and multiple packages of cocaine with a weight of 2.64 pounds.

At defendant’s initial appearance, the United States requested detention based on risk of flight.  The detention hearing is scheduled for December 11, 2018 at 10:00 am before Judge Montenegro.  His preliminary hearing is scheduled for December 20, 2018 at 1:30 pm before Judge Montenegro.

CBP officers at the border crossings in Southern California routinely stop illegal activity while processing millions of legitimate travelers into the United States.  Those statistics can be found here: CBP-enforcement-statistics.

If you have any information related to suspected smuggling activity at the Calexico East Cargo facility, the Department of Homeland Security encourages you to report it by calling its toll-free Tip Line at 1-866-DHS-2-ICE or by completing its online tip form.

DEFENDANT                                                Case Number 18MJ11506                           

Jose Guadalupe Aviles-Cordero                     Age: 60          Mexicali, Mexico

SUMMARY OF CHARGES

Importation of Controlled Substances

Maximum penalty: 10 years minimum to life; $1,000,000 fine; supervised release; $100 special assessment)

INVESTIGATING AGENCIES

U.S. Customs & Border Protection (CBP)

Homeland Security Investigations

The public is reminded that a complaint is a charging document.  A defendant is presumed innocent until the government meets its burden in court of proving guilt beyond a reasonable doubt. 

NEWS RELEASE SUMMARY – November 30, 2018

SAN DIEGO –  Franklin Adriel Rohac-Garci and Frazy Jiron were charged in separate complaints today with assault on a federal officer and illegal entry arising out of incidents that occurred last night. 

As alleged in one of the complaints, the first incident occurred when Border Patrol Agent C. Nelson was conducting routine patrol in the Imperial Beach Border Patrol Station’s area of resonsibilitity. At approximately 9:30 p.m., Agent Nelson encountered five subjects, including one later identified as defendant Frazy Jiron.  Agent Nelson approached the subjects, identified himself as a Border Patrol agent, and told the group to not move.  Jiron began to stand up and was ordered to lie down.  As Agent Nelson attempted to handcuff Jiron, Jiron made a statement that caused the rest of the group to begin to stand up.    After a brief struggle, Jiron managed to get back to his feet and the rest of the group stood up and began to run. Jiron threw an elbow behind him that struck Agent Nelson in the chest.  A brief struggle ensued, causing both Agent Nelson and Jiron to fall down a hill.  Jiron was later arrested and admitted he is a Honduran citizen, with no legal right to be in the United States.

The second charging document alleges that at approximately 10:45 p.m., Border Patrol Agent Brian D. Cox was conducting routine patrol at the Imperial Beach Border Patrol Station. Agent Cox encountered an individual, later identified as defendant Franklin Ariel Rochac-Garcia, running towards his location.  Agent Cox ordered him to stop.  Rochac ignored Agent Cox’s command and instead continued running towards him. As Rochac approached Agent Cox, Rochac reached back with his arm and swung at Agent Cox.  Agent Cox avoided the punch and grabbed Rochac’s sleeve in an effort to restrain him.  Agent Cox and Rochac fell to the ground and Rochac got up and ran south towards the border.  As Rochac attempted to jump over the fence, Agent Cox was able to detain him.  Rochac was arrested after stating he was a citizen of El Salvador without any immigration documents allowing him to enter or remain in the United States legally.

“Assault on federal officers is one of the Department of Justice’s top priorities,” said U.S. Attorney Adam L. Braverman. “Our office is committed to vigorously prosecuting these cases.”

The case against defendant Rohac-Garci is being prosecuted by Assistant United States Attorney Colin McDonald, and the case against defendant Jiron is being prosecuted by Assistant United States Attorney Carlos Arguello.

DEFENDANT                                               Case Number 18 MJ 6082

Franklin Adriel Rohac-Garci

DEFENDANT                                                Case Number 18 MJ 6085

Frazy Jiron

SUMMARY OF CHARGES (both defendants)

Assault on a Federal Officer, in violation of Title 18, U.S.C., Sec. 111 (a)

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

Illegal Entry, in violation of Title 8 U.S.C., Sec. 1325

AGENCIES

U.S. Border Patrol

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

 

NEWS RELEASE SUMMARY – November 29, 2018

SAN DIEGO – A Mexican national attempting to illegally re-enter the United States while armed with a loaded firearm was arrested and charged in an assault on a U.S. Border Patrol agent earlier this week. 

According to the criminal complaint, at approximately 4:30 a.m., on Monday November 26, 2018, approximately ½ mile north of the United States/Mexico border, and two miles east of the Otay Mesa Port of Entry, a United States Border Patrol Agent responded to a radio call-out regarding a person crossing on foot from Mexico to the United States.  After a short search, the agent encountered Hector Rodriguez-Chavez lying face-down in tall grass.  As the agent drew near, Rodriguez turned and pointed a loaded pistol at the agent. The agent placed his body on Rodriguez’s right arm in an attempt to gain control of the pistol.  Rodriguez resisted and the two wrestled for about a minute before two more agents arrived on the scene.  Rodriguez ignored several verbal commands to relinquish the pistol and stop resisting. The second agent to arrive deployed a tazer to subdue Rodriguez and gain control over the pistol.  Rodriguez was detained and arrested.

Court records show Rodriguez has a criminal record that includes felony convictions for violent drug, immigration and firearms crimes.  Rodriguez is a Mexican national who has previously been deported from the United States.

“Assault on federal officers is one of the Department of Justice’s top priorities,” said U.S. Attorney Adam L. Braverman. “Our office is committed to vigorously prosecuting these cases.”

“Our agents’ vigilance prevented this dangerous person from illegally re-entering our communities,” said Rodney S. Scott, Chief Patrol Agent for San Diego Sector Border Control.

This case is being prosecuted by Assistant United States Attorney Stephen H. Wong.

DEFENDANT                                               Case Number 18mj6015-NLS                                                                               

Hector Rodriguez-Chavez, Age 57

SUMMARY OF CHARGES

Assault on a Federal Officer, in violation of Title 18, U.S.C., Sec. 111 (a)(l ) and (b)

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

Alien in Possession of a Firearm, in violation of Title 18, U.S.C., Sec. 922(g)(5)

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

AGENCIES

U.S. Border Patrol

Federal Bureau of Investigation

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

 

NEWS RELEASE SUMMARY – November 27, 2018

Candace Michelle Craven, a Tennessee-based nurse practitioner pleaded guilty in federal court today, admitting that she participated in a health care fraud scheme that bilked TRICARE – the health care program that covers United States service members – out of more than $65 million.  As part of her guilty plea, Craven admitted to conducting sham “telemedicine” evaluations that resulted in the prescription of exorbitantly expensive compounded medications to patients that she never saw or examined in person.

Craven entered her guilty plea, to conspiracy to commit health care fraud, before U.S. District Judge Janis L. Sammartino, who will sentence Craven at a hearing scheduled for February 8, 2019. 

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 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 Craven.  Craven then conducted phone calls with the TRICARE beneficiaries, and recommended that they be prescribed compounded medications despite never examining the patients in person.  These prescriptions were then signed by doctors employed by Choice MD, 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.

Josh Morgan, a former Marine from San Diego, pleaded guilty in April to Conspiracy to Commit Health Care Fraud for his role in recruiting TRICARE beneficiaries to fraudulently receive these prescriptions.  The doctors who signed the prescriptions, Carl Lindblad and Suzy Vergot, pleaded guilty to the same charges in September.

Between December 2014 and May 9, 2015 – the day that TRICARE stopped reimbursing for compounded medications – doctors working at Choice MD signed 4,442 total prescriptions.  Over this time, their co-conspirators billed TRICARE $65,679,512 for these prescriptions.

Craven represents the seventh defendant charged in relation to this fraud scheme.  In addition to Morgan, Lindblad, and Vergot, Jimmy and Ashley Collins, the owners of Choice MD, and CFK, Inc., the owner of a co-conspirator pharmacy, were indicted in March 2018 on charges of Conspiracy to Commit Health Care Fraud and Illegal Payments of Remunerations.  That case remains pending.

This case is being prosecuted by Assistant United States Attorneys Benjamin J. Katz and Mark W. Pletcher.

DEFENDANTS                                              Case Number             18-cr-4209-JLS                       

Michelle Candace Craven                                   Age: 52

SUMMARY OF CHARGES

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

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

NEWS RELEASE SUMMARY – November 27, 2018

SAN DIEGO – Convicted felon Dwight Wayne Jordan, aged 60, pleaded guilty today in federal court before U.S. Magistrate Judge Nita L. Stormes to a two Count Superseding Information charging him with knowingly and intentionally possessing with intent to distribute cocaine base (i.e., crack cocaine), cocaine and heroin along with illegally possessing eleven firearms that admittedly included semi-automatic weapons, shotguns, rifles and .357 Magnum revolvers.

            Through his plea agreement, Jordan, a San Diego resident, admitted that, on September 8, 2018, he was the driver and sole occupant of a BMW X3 traveling on I-94 near Market Street in San Diego when a San Diego Police Department (SDPD) officer attempted to conduct a traffic stop.  Although Jordan initially yielded, as the officer exited his vehicle, Jordan accelerated and attempted to flee, running two red lights.  While attempting to evade the officer, Jordan threw a bag from the window that was subsequently recovered by SDPD.  Jordan admitted in his plea agreement that the bag contained approximately two kilograms of cocaine.  After the vehicle was stopped and Jordan arrested, officers recovered more than $6,900 in cash that was admittedly the proceeds of narcotics trafficking.

            On September 18, 2018, law enforcement also executed follow-up search warrants at two locations associated with Jordan in San Diego.  Those searches yielded eleven firearms; $36,499 in cash that was also admittedly the proceeds of narcotics trafficking; and significant quantities of cocaine base, cocaine and heroin.  Jordan admitted that he illegally possessed the eleven firearms identified in the plea agreement as well as the drugs, which he intended to further distribute.  Due to his prior drug felony conviction, Jordan is prohibited from possessing a firearm or ammunition under federal law.  The plea arrangement also includes forfeiture of each of the eleven firearms and associated ammunition; $43,440 in United States currency; and a 2013 Porsche Cayenne in which a portion of the narcotics proceeds were located.  

The federal narcotics charge to which Jordan has pleaded guilty carries a mandatory minimum ten year sentence and a maximum life sentence and the firearms-related charge carries a maximum 10 year sentence.  Jordan is scheduled to be sentenced on February 15, 2019 before U.S. District Judge Gonzalo P. Curiel in San Diego.

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

This matter is being prosecuted by Assistant U. S. Attorney Larry Casper.

DEFENDANTS                                  Criminal Case Number 18-cr-4496                                                

Dwight Wayne Jordan                                                Age: 60                                   San Diego, California

SUMMARY OF CHARGES TO WHICH GUILTY PLEAS ENTERED

Count 1:

Possession With the Intent to Distribute Cocaine Base, Cocaine and Heroin, 21 U.S.C. 841(a)

Maximum penalty: Life in prison, and a mandatory minimum 10 years; $10,000,000 fine; and at least five years’ supervised release up to life

Count 2:

Felon in Possession of a firearm, 18 U.S.C. 922(g)(1)

Maximum penalty: 10 years custody $250,000 fine and 3 years supervised release

INVESTIGATING AGENCIES

Drug Enforcement Administration

Bureau of Alcohol Tobacco Firearms and Explosives

San Diego Police Department

 

NEWS RELEASE SUMMARY – November 21, 2018

SAN DIEGO, CA – A federal jury today convicted Andrew Otero and his company, A&D General Contracting, Inc. (“A&D”), on charges that they fraudulently obtained $11 million in federal contracts specifically set aside for service-disabled veteran-owned businesses.

The evidence demonstrated that Otero had no military experience.  Yet Otero (on behalf of A&D) and veteran Roger Ramsey (on behalf of Action) participated in a conspiracy to defraud the government by forming a joint venture (“the JV”) – and falsely representing that Action and the JV qualified as service-disabled veteran-owned small businesses (“SDVOSB”).  Based on the false claim to SDVOSB eligibility, the conspirators fraudulently obtained approximately $11 million in federal government construction contracts or task orders with the Department of Veterans Affairs (“VA”) and the Army Corps of Engineers (“ACE”).

As proven at trial, the fraudulent conspiracy involved set-aside contracts that could only be bid upon by legitimate service-disabled veteran-owned small businesses – a designation that did not apply to Otero or A&D.  To appear qualified, Otero and Ramsey initially executed an agreement to create the JV (“the JV Agreement”), which stated that Ramsey’s company (Action) would be the managing venturer, employ a project manager for each of the set-aside contracts, and receive the majority of the JV’s profits.

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

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

“Our nation strives to repay the debt of gratitude we owe to our veterans by setting aside some government contracts for veterans with service-related disabilities,” said United States Attorney Adam Braverman.  “These unscrupulous contractors abused this program through a cynical and illegal ‘rent-a-vet’ scheme.  They are now being held fully accountable for robbing truly deserving vets of important economic opportunities.”

All four defendants are also facing civil charges in United States v. Otero, et al., Case No. 15CV0441-JAH, a case alleging violations of the false claims act based on the similar misconduct.

The defendants were ordered to appear before U.S. District Judge John Houston for sentencing on February 19, 2019 at 10:30 a.m.

This case is being prosecuted by Assistant United States Attorneys Rebecca Kanter and Aaron Arnzen.

CORPORATE DEFENDANTS

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

INDIVIDUAL DEFENDANTS                                          

Andrew Otero                                            El Cajon, CA

Criminal Case No. 17CR0879-BEN

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

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 – November 20, 2018

SAN DIEGO – Yesterday, federal authorities charged Salam Razuki, Sylvia Gonzales and Elizabeth Juarez with offenses related to a conspiracy to kidnap and kill a business associate over a dispute involving real estate investment properties, most of which were leased to marijuana dispensaries.  All three defendants were arrested last week.

According to the complaint, in October 2018, Salam Razuki and Sylvia Gonzales met with a Confidential Human Source and asked the source to arrange to kill one of their business associates, N.M. (name redacted for privacy reasons).  Razuki and Gonzales stated that they had invested in multiple properties and business ventures with N.M. and were now involved in a civil dispute over their assets. They wanted the source to “shoot him in the face,” “to take him to Mexico and have him whacked,” or kill him in some other way.  Razuki and Gonzales provided the source with a picture of N.M.

In subsequent conversations earlier this month, defendants Razuki and Gonzales, eventually joined by Elizabeth Juarez, reiterated their desire to have N.M., who they nicknamed “the midget,” taken to Mexico and killed, with Gonzales and Juarez stating they wanted to “put the turkey up to roast before Thanksgiving.”  Defendants offered to pay the source $2,000, with $1,000 to be paid immediately. Defendant Gonzales went to the Goldn Bloom Dispensary and returned with $1,000 cash, which defendants provided to the source along with two addresses for N.M.

The complaint further states that on or about November 13, 2018, Gonzales called the source and indicated that she and Razuki would be with N.M. in court at the Hall of Justice at 330 West Broadway in San Diego.  Gonzales asked the source to join them in order to see N.M. in person. The source declined going into the courtroom, but agreed to stand outside the building and wait for N.M. to exit. While inside the Hall of Justice, Gonzales took a picture of N.M. with her phone, sent it to the source and then called the source to describe what N.M. was wearing. Gonzales left the Hall of Justice and met with the source to further describe N.M. During this meeting, Gonzales identified the locations of two businesses N.M. manages and stated “if they take him now, it’s gunna be good.” Gonzales went back into the courthouse and provided updates as N.M. was departing the Hall of Justice, to ensure the source observed N.M. as he left.

According to the complaint, on November 15, 2018, the source met with Razuki and stated, “I took care of it.” Razuki replied, “So he will take care of it, or it’s done?” The source replied, “Done.” Razuki quickly changed the subject to discuss other business investments and pending loans. Later in the conversation, the source asked whether Razuki wanted to see proof. Razuki replied, “No, I'm ok with it. I don't want to see it.” The source then requested the remainder of the agreed-upon payment and Razuki indicated Gonzales would handle this.

The complaint reflects that defendants’ business dispute with N.M. involved approximately $40 million.  In an interview with FBI, N.M. advised that he had invested in real estate with Razuki in order to lease buildings to various entities, which were primarily marijuana dispensaries.

Detention hearings for defendants Salam Razuki and Elizabeth Juarez are scheduled to occur on Tuesday, November 27, 2018 at 1:30 p.m. before U.S. Magistrate Judge Mitchell Dembin.

This case is being prosecuted by Assistant United States Attorney Fred Sheppard.

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

DEFENDANT                                                Case Number 18MJ5915                                         

Salam Razuki

Sylvia Gonzales

Elizabeth Juarez        

SUMMARY OF CHARGES

Title 18, United States Code, Section 956 - Conspiracy to kill, kidnap, maim an individual

Title 18, United States Code, Section 1201(c) - Conspiracy to kidnap

INVESTIGATING AGENCIES

Federal Bureau of Investigation

NEWS RELEASE SUMMARY – November 20, 2018

SAN DIEGO – Following a two-week trial, a jury returned guilty verdicts on all counts against finance executive Peter Cash Doye and notary public and real estate broker Raquel Reid for their roles in a massive real estate fraud scheme that generated nearly $50 million in fraudulently-obtained loan proceeds.

The evidence presented at trial demonstrated that Doye and Reid defrauded lenders into making enormous loans against four multi-million dollar mansions in La Jolla and Del Mar, then used forged documents to make it appear that the loans had been paid off so they could obtain additional loans from new lenders who believed the mansions were owned “free and clear.”

Doye, a senior executive at the real estate investment firms Conix, Inc. and Variant Commercial Real Estate (“VCRE”), negotiated the financing from unsuspecting lenders and investors based on a host of lies about the collateral used to secure the loans.  To pull of the scam, Doye, Reid, and their co-conspirators created forged real estate lien “releases” and recorded fraudulent records at the San Diego County Recorder’s Office, complicating the chain of title for these homes.  Reid notarized the forged documents, helping to make the fraudulent paperwork appear authentic. 

Doye’s business partner Courtland Gettel and Arizona attorney Jeffrey Greenberg previously pleaded guilty to participating in the scheme, and are serving sentences of 135 and 81 months, respectively. Gettel and Greenberg were also ordered to pay more than $43 million in restitution to victims, and to forfeit the proceeds of the crime.  Gettel was the owner of Conix and VCRE, which refurbished single-family homes, purchased distressed debt, and purchased and refurbished commercial real estate projects.

During trial, the government proved that Gettel, Greenberg, and Doye acquired the high-end homes in La Jolla and Del Mar by claiming they would be used as luxury rentals and investment properties—although in fact, Gettel and Doye lived in the properties along with their families. When they needed money to fund other business deals, Gettel and Doye began negotiating with new lenders, pretending that the first loans never existed or had already been paid off.  Greenberg admitted that he used his expertise as a lawyer to generate and record fraudulent records, making it appear that prior loans were paid off and helping to close the fraudulent deals. 

In late 2014, the lenders began to uncover the fraud and learn that their secured interests in the properties were worthless.  In response to questions from these lenders, Doye, Reid and Gettel denied knowing anything about the fraudulent loans, and created yet more fraudulent documents to cover their tracks. For example, Reid destroyed her notary book and cut up her notary stamp, and then falsely reported to the California Secretary of State that her book had been lost.

“These defendants attempted to use their significant real estate experience to pull off an egregious fraud that created serious consequences for lenders and title owners,” said U.S. Attorney Adam Braverman.  “As this case demonstrates, federal prosecutors are fully committed to protecting the integrity of our lending system by holding such criminals accountable.”

“The FBI will pursue each criminal participant in these sophisticated, multi-million dollar fraud schemes until final justice is served.” said FBI Special Agent in Charge John Brown. “Today, Peter Doye and Raquel Reid join co-conspirators Courtland Gettel and Jeffrey Greenberg as convicted felons for their roles in this massive loan fraud scheme.”

United States District Judge William Q. Hayes remanded both Doye and Reid into custody following the guilty verdicts, and set their sentencing hearings for March 4, 2019, at 9:00 am.  

This case is being prosecuted by Assistant United States Attorneys Emily Allen and Andrew Young.

DEFENDANTS

Peter Cash Doye                                             Age: 41                       San Diego, CA

Raquel Reid                                                    Age: 38                       San Diego, CA

CHARGES

Count One (both defendants): Wire and Mail Fraud Conspiracy, in violation of 18 U.S.C. § 1349

Maximum Penalties: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture

Counts Two through Six (Doye only; both defendants as to Count Three): Wire Fraud, in violation of 18 U.S.C. § 1343

Maximum Penalties as to each count: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture

Counts Seven through Nine (Doye only as to Count Seven, both defendants as to Counts Eight and Nine): Mail Fraud, in violation of 18 U.S.C. § 1341

Maximum Penalties as to each count: 20 years’ imprisonment, $250,000 fine, or twice the gross gain or loss caused by the offense, $100 special assessment, restitution, forfeiture

Counts Ten and Eleven (both defendants): Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A

Maximum Penalties: mandatory 2 years’ imprisonment, consecutive to any other term of imprisonment, $250,000 fine, $100 special assessment, restitution.

Count Twelve (Reid only): False Statements to Federal Agents, in violation of 18 U.S.C. § 1001

Maximum Penalties: 5 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.

DEFENDANTS PREVIOUSLY CHARGED

Jeffrey Greenberg, 16CR1076-WQH and 1077-WQH          Age: 67           Tucson, AZ

Courtland Gettel, 16CR1099-WQH                                       Age: 43           Coronado, CA

AGENCY

Federal Bureau of Investigation

NEWS RELEASE SUMMARY – November 19, 2018

          SAN DIEGO, CA – Adam L. Braverman, United States Attorney for the Southern District of California, responded today to a recent report reflecting that the number of hate crime incidents reported to the FBI in 2017 increased approximately 17 percent nationwide and 15 percent in San Diego.

          According to the Uniform Crime Reporting (UCR) Program’s annual Hate Crimes Statistics report, law enforcement agencies reported double-digit increases nationally in hate incidents in 2017 compared to 2016. Compiling data from a newly increased number of reporting agencies nationwide, the UCR statistics also show a consistent increase in reported incidents in San Diego. In 2016, 35 reports of hate incidents were reported in San Diego, including 16 incidents motivated by race, ethnicity, or ancestry, and 7 incidents motivated by religion. In 2017, 41 incidents were reported, with race incidents increasing to 17 and incidents motivated by religion climbing to 12. Twelve incidents motivated by sexual orientation or gender were reported in both 2016 and 2017.

          Outside of the city, the number of reported incidents in San Diego County slightly decreased from 18 (13 motivated by race, ethnicity, or ancestry; 1 motivated by religion; 4 motivated by sexual orientation) in 2016 to 14 (7 motivated by race, ethnicity, or ancestry; none motivated by religion; 7 motivated by sexual orientation) in 2017. No information was provided to the FBI regarding reported incidents in Imperial County.

          “Hatred and violence on the basis of race, religion and sexual orientation have no place in our nation,” said U.S. Attorney Adam Braverman.  “The United States has been a ‘shining city upon a hill’ because Americans appreciate that diversity makes us stronger as a people.  Today, we mark the 155th anniversary of the Gettysburg Address and are reminded that we still have unfinished work.  We will neither tolerate nor accept the actions of those who seek to weaken our bonds. We remain steadfast in our commitment to prosecuting those that commit crimes motivated by hate.”

          “Bringing justice to victims of hate crimes is a priority for me,” District Attorney Summer Stephan said. “Hate crimes are particularly hurtful in that they target vulnerable people who have historically suffered from prejudice and they cause a ripple effect of fear and anguish within entire communities around the victim. Through our hate crimes prosecutors and victim advocates, we stand ready to support and protect victims of hate crimes and to hold their abusers accountable.”

          U.S. Attorney Braverman announced the second San Diego Regional Hate Crimes Coalition’s (SDRHCC) “Stop the Hate” Community Forum, scheduled for Wednesday, November 28, 2018, at 6:00 p.m. in Balboa Park’s Santa Fe Conference Room.  Earlier this year, the SDRHCC hosted the first “Stop the Hate” Community Forum at the El Cajon Police Department and plans to host additional forums in the coming months.  The SDRHCC, which began in 1997, is a coalition of non-governmental organizations, community-based groups, and law enforcement agencies that coordinate outreach, education, and responses regarding hate crimes and hate incidents in the San Diego area. The forum will include panels of prosecutors explaining legal rights and resources, community leaders discussing hate incidents and bullying, and victim-witness coordinators from state and federal agencies providing information for victims of hate incidents and crimes.

          In addition to United States Attorney Braverman and John Brown, Special Agent in Charge of the FBI San Diego Field Office, speakers at the Community Forum will include representatives from the Anti-Defamation League, Border Angels, Islamic Center of San Diego, San Diego District Attorney’s Office, San Diego City Attorney’s Office, and the Federal Bureau of Investigation. The forum is open to the public. Plenty of free parking is available. Press availability will begin at 5:30.

NEWS RELEASE SUMMARY – November 15, 2018

SAN DIEGO – Luis Fernando Figueroa, a former Wells Fargo personal banker, was arrested yesterday by FBI agents and made his initial court appearance today on charges of participating in an international money laundering conspiracy.   Figueroa’s apprehension marks the latest in a string of indictments and arrests tied to an international money laundering organization based in Tijuana, Mexico that operated primarily in San Diego, California.  Between January and March of 2018, seven leaders of this organization were charged and arrested in San Diego.  To date, five of the charged leaders 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, including the Sinaloa Cartel, between 2014 and 2016. 

The money laundering organization recruited individuals to serve as “funnel account holders” and open personal bank accounts at Wells Fargo Bank and other banking institutions.  Other members of the money laundering organization, known as “couriers,” travelled to San Diego, Los Angeles, the East Coast, and other U.S. cities, where they picked up and transported amounts of bulk cash ranging from thousands to hundreds of thousands of dollars in narcotics proceeds.    

Once in possession of the money, the couriers deposited the money into the funnel bank accounts controlled by the money laundering organization.  These funnel bank accounts were maintained at Wells Fargo Bank, as well as other domestic financial institutions.  Subsequently, the funds were transferred from these United States-based accounts via international wire transfers to a series of Mexico-based shell companies operated by the money laundering organization.  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. Attorneys Blanca Quintero and Jose Castillo.

DEFENDANT

Name                                      Age     Hometown

Luis Fernando Figueroa         30        Tijuana, Mexico

SUMMARY OF CHARGES

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

Conspiracy (18 U.S.C. § 371).

Operation of an Unlicensed Money Transmitting Business (18 U.S.C. § 1960(a))

Maximum Penalties:  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 5 years of supervised release.  

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

INVESTIGATIVE AGENCIES

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

IRS Criminal Investigations

Believed To Be Largest Single Port Seizure Of Fentanyl Pills

Across the Southwest Border of the U.S.

 

NEWS RELEASE SUMMARY – November 15, 2018

SAN DIEGO –   Today, Fernando Jesus Peraza, age 39, pleaded guilty before federal Magistrate Judge Jill Burkhardt to importing over 20,000 fentanyl pills.  Peraza was arrested at the San Ysidro Port of Entry on August 8, 2018. Peraza, a United States citizen, resided in Tijuana at the time of the offense but worked at a local trash collection service in the United States.  

According to court records, Peraza was the driver and sole occupant of his vehicle.  U.S. Customs and Border Protection (“CBP”) officers initially contacted Peraza in the pre-primary inspection area; he was referred to secondary inspection, where officers found four packages concealed in the passenger side rear quarter panel.  The counterfeit pills, which were designed to resemble M30s or oxycodone, contained fentanyl. 

Defendant admitted today that he imported approximately 20,000 pills containing fentanyl in his vehicle and knew that his vehicle contained fentanyl, or some other prohibited drug.  He faces a minimum mandatory sentence of 10 years in custody.

“Counterfeit pills are especially dangerous because users often don’t know they are ingesting fentanyl,” said U.S. Attorney Adam Braverman.  “With overdoses taking a life every 8 minutes, federal law enforcement agencies are prioritizing prosecution of every individual who smuggles and distributes this deadly substance.  Thanks to the vigilance of CBP, these deadly pills will not see the streets of our communities.” 

Defendant is scheduled for sentencing on February 1, 2019, before United States District Court Judge Gonzalo P. Curiel.

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

DEFENDANT                                    Case Number 18CR3908GPC                           

Fernando Jesus Peraza                Age: 38        Tijuana, Mexico

SUMMARY OF CHARGE

Importation of Controlled Substances

Maximum penalty: 10 years minimum to life; $10,000,000 fine; supervised release; $100 special assessment)

INVESTIGATING AGENCIES

Homeland Security Investigations

U.S. Customs & Border Protection (CBP)

NEWS RELEASE SUMMARY – November 13, 2018

SAN DIEGO – Former U.S. Navy Captain Jeffrey Breslau pleaded guilty to criminal conflict of interest charges and former U.S. Navy Master Chief Ricarte Icmat David was sentenced on corruption charges to 17 months in prison, followed by one year of supervised release and $30,000 in restitution.  Both appeared before Judge Janis Sammartino of the U.S. District Court for the Southern District of California.  Breslau and David are among the latest U.S. Navy officials to plead guilty and be sentenced in the expansive corruption and fraud investigation involving foreign defense contractor Leonard Glenn Francis and his Singapore-based ship husbanding company, Glenn Defense Marine Asia (GDMA).

Breslau, 52, of Cumming, Georgia was charged in September 2018 and pleaded guilty today to one count of criminal conflict of interest, admitting that while he was still employed by the U.S. Navy, he was paid over $60,000 by Francis in return for providing Francis with public relations consulting services.  Francis pleaded guilty in 2015 to bribery and fraud charges, admitting that he presided over a massive, decade-long conspiracy involving “scores” of U.S. Navy officials, tens of millions of dollars in fraud and millions of dollars in bribes and lavish gifts, including luxury travel, airline upgrades, five-star hotel accommodations, top-shelf alcohol, the services of prostitutes, Cuban cigars, Kobe beef, and Spanish suckling pigs.

According to admissions made as part of his guilty plea, from October 2009 until July 2012, Breslau was a Captain in the U.S. Navy assigned as Director of Public Affairs for the U.S. Pacific Fleet, headquartered in Pearl Harbor, Hawaii.  As part of his duties, Breslau was involved in devising the U.S. Navy’s public affairs communications strategy, and provided public affairs guidance to Pacific Fleet components and other U.S. Navy commands.  From August 2012 until July 2014, Breslau was assigned to the Commanding Officer for the Joint Public Affairs Support Element in Norfolk, Virginia, where he was responsible for leading joint crisis communications teams. 

Breslau admitted that from March 2012 until September 2013, while serving in the above roles for the U.S. Navy, he provided Leonard Francis with public relations consulting services, including providing advice on how to respond to issues and controversies related to Francis’s ship husbanding business with the U.S. Navy.  These included issues related to port visit costs, allegations of malfeasance such as the unauthorized dumping of waste, disputes with competitors, and issues with Pacific Fleet and contracting personnel.  During the course of his consulting agreement with Francis, Breslau authored, reviewed, or edited at least 33 separate documents; authored at least 135 emails providing advice to Francis; provided at least 14 instances of “talking points” in advance of meetings between Francis and high ranking U.S. Navy personnel; and “ghostwrote” numerous emails on Francis’s behalf to be transmitted to U.S. Navy personnel.  During the course of this consulting agreement, Francis paid Breslau approximately $65,000 without Breslau disclosing the agreement to the U.S. Navy.    

Former Master Chief Ricarte David was charged in August 2018, pleaded guilty in September, and was sentenced today on corruption conspiracy charges. As a Master Chief, David was the senior-most enlisted sailor in the U.S. Navy, and as such, he was trusted and respected by officers and enlisted sailors alike.

During this period of the illegal conduct, Master Chief David was assigned various logistics positions with the U.S. Navy’s Seventh Fleet, including with the Fleet Industrial Supply Center in Yokosuka, Japan from June 2001 to July 2004; on the USS Essex, from July 2004 to August 2007; on the USS Kitty Hawk from September 2007 to August 2008; and on the USS George Washington from September 2008 to July 2010.  In these positions, David was responsible for ordering and verifying goods and services for the ships on which he served, including from contractors during port calls.  Throughout this period, David received from Francis various things of value, including five star hotel rooms during every port visit.   

To fuel his half of the corrupt bargain, David repeatedly facilitated fraud on the United States by allowing Francis and GDMA to inflate the husbanding invoices to bill for services never rendered.  For example, David instructed Francis to inflate invoices for the USS Essex’s anticipated November 2007 port visit to the Philippines.  “Boss, Just in case I’m not on the port visit you can go ahead do your thing[,] put some dollar on the CHT/Water/Trash or Force protection[.] [Y]ou and me are the only one will know[,] just put them on my savings if we can do that . . . more power.”  David signed this email “V/r, Bad Boy.”  On May 9, 2007, David emailed Francis again reiterating his instruction to inflate the invoices for Francis’s company: “Just in case I’m not on that port visit you can go ahead do your thing put some dollar on the CHT/Water/Trash or Force protection[.]  [J]ust you and me are the only one will know[.]  [J]ust put them on my savings if we can do that . . . just getting ready for my retirement home in P.I. [M]ore power to you.”  In case anything was left in doubt that David was keeping his end of the corrupt bargain, on July 11, 2007, David sent a third email instructing Francis to inflate the invoices during the USS Essex port visit to the Philippines: “Good day to you, just to let you know [I]’m heading to the mighty [USS Kitty Hawk] and the Essex will be there in Subic sometimes in November[.] [T]he one who replace me here in stock control dont have any clue so i’am giving you the permission to do whatever you want to do with the bills…throw extra dollar on the CHT/Water etc… [T]hey w[]ere all [a]utomatic take ups which the ship don’t pay for it… [J]ust don’t forget me please[.] [M]y house in P.I. is not finish yet, ok?? 

Their corrupt bargain continued as David transitioned to his new position aboard the nuclear aircraft carrier USS Kitty Hawk.  On or about May 8, 2008, Francis’s company paid approximately 84,637.00 HKD for hotel reservations at the Grand Hyatt Hong Kong for U.S. Navy personnel assigned to the USS Kitty Hawk including 10,396 HKD for David’s four-night stay in a Harbor View Room.

 “Breslau and David selfishly traded on their revered positions of trust in exchange for cash payments and entertainment expenses,” said U.S. Attorney Adam Braverman.  “We will vigorously prosecute any public official who puts his own selfish personal interests ahead of the interests of the Navy and our nation.”

“The guilty plea today of U.S. Navy Captain (retired) Jeffrey Breslau and sentencing of U.S. Navy Master Chief Petty Officer (retired) Ricarte David is yet another sad chapter in what is the largest fraud and corruption scandal in the history of the U.S. Navy,” said Dermot F. O’Reilly, Director, Defense Criminal Investigative Service.  While the conduct of the vast majority of those in the U.S. Navy is beyond reproach, we will vigorously pursue those individuals who put their own greed above their sworn duty to serve and protect this great nation.  The Defense Criminal Investigative Service and our law enforcement partners will continue to investigate any individual, regardless of position, involved in this massive corruption scandal.

"The sentencing of retired Master Chief Petty Officer David and plea by retired Captain Breslau shows service members who defraud the government will be held accountable for their actions," said Naval Criminal Investigative Service Director Andrew Traver.  "These service members' actions should serve as a deterrent to anyone trying to defraud the government for personal gain. NCIS will pursue investigations on all cases involving economic crime committed against the Department of the Navy."

So far, 33 defendants have been charged and 22 have pleaded guilty.

The case is being prosecuted by Assistant U.S. Attorneys Mark W. Pletcher, Patrick Hovakimian, and Robert Huie of the Southern District of California and Assistant Chief Brian R. Young of the Fraud Section of the Justice Department’s Criminal Division.                 

DEFENDANT                                                            Case Number: 18-CR-4208-JLS                                   

Captain (retired) Jeffrey Breslau                                Age: 52          Cumming, Georgia

SUMMARY OF CHARGES

Conflict of Interest, in violation of 18 U.S.C. § 208(a), 216

Maximum Penalty: 5 years in prison, a $250,000 fine

DEFENDANT                                                            Case Number: 18-CR-3655-JLS                                   

Master Chief (retired) Ricarte Icmat David               Age: 62          Concepcion, Tarlac, Philippines

SUMMARY OF CHARGES

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

Maximum Penalty: 20 years in prison, a $250,000 fine

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Defense Contract Audit Agency

NEWS RELEASE SUMMARY – November 9, 2018

SAN DIEGO – Clayton Marlow Anderson, Jr., a former attorney based in La Mesa, California before his disbarment in 2015, was sentenced to serve 18 months in federal prison today for defrauding clients and investors.  On July 3, 2018, Anderson pleaded guilty to wire fraud and money laundering in connection with his fraudulent investment scheme, known alternatively as the “Clayton M. Anderson Monthly Income Plan,” “Anderson Plan,” or “A-Plan.”

During a hearing this morning before U.S. District Judge Cathy Ann Bencivengo, Anderson was found to have breached his duty as an attorney and a fiduciary by involving his clients in “A-Plan,” a scheme to solicit loans to finance the costs and fees related to construction defect lawsuits brought by his law firm.  As a part of his sentence, Anderson was also ordered to pay over $1.5 million in restitution to his victims.

From 2005 until 2014, Anderson solicited unsecured loans from six individuals and paid them high rates of interest between 8% and 13% each year.  However, Anderson eventually refashioned these unsecured loans as an “investment” with guaranteed interest, and pitched the investment to his legal clients.  In 2012, Anderson won a $1.8 million legal settlement for Jefferson Pointe Professional Corporation (“JPPC”), who had hired Anderson to represent them in a construction defect lawsuit against the builders of their office park in Murrieta, California.  Instead of paying his clients their rightful share of the legal settlement as required, Anderson repeatedly solicited them on behalf of “A-Plan Investment Services, Inc.” promising JPPC a 13% annual return on their “investment.”  As a part of his guilty plea, Anderson admitted that his pitch to his clients violated his duties as an attorney and that he made multiple false claims, including that A-Plan had over $1 million under management and that A-Plan was the beneficiary of a $4.4 million insurance policy on his life.  Anderson admitted his clients invested $800,000 of their legal settlement into “A-Plan” in reliance on his false claims, and that he engaged in other fraudulent conduct toward his clients.

In fact, Anderson was in dire financial straits when he solicited the investment. Anderson admitted making a $182,549.69 bank transfer in order to conceal from his clients the fact that he had already withdrawn their settlement money from his client trust account without their permission.  Anderson also admitted that he engaged in a money laundering transaction on January 2, 2013, when he transferred over $30,000 in money derived from his fraud scheme into a retirement account under his control. 

In his plea agreement, Anderson admitted that his fraud caused his clients to lose over $600,000, and that the six other A-Plan participants lost over $700,000 in money loaned to him. Anderson also admitted misrepresenting and concealing a variety of information from the six other A-Plan participants, including his law firm’s bankruptcy, his decision to forfeit all outstanding legal settlement money to the bankruptcy trustee, and his suspension and eventual disbarment by the California State Bar in January 2015.  Anderson admitted that if A-Plan’s participants had been aware of those facts, they would not have continued to participate in A-Plan, and that his misrepresentations and omissions prevented them from recouping their investments or at the very least mitigating their losses – totaling $1,362,257.50.

“Clayton Anderson put his own financial interests above those of his clients, and he betrayed the trust that they placed in him as their attorney,” said U.S. Attorney Adam L. Braverman.  “This prison sentence serves as a warning and demonstrates the commitment of the United States Attorney’s Office to protecting the rights of investors – especially those investing with their own attorney – to candid, truthful information.” 

“The FBI vigorously investigates those who breach the attorney-client trust relationship by committing fraud and deceit,” commented FBI Special Agent in Charge John Brown. “Today, Defendant Clayton Anderson, Jr., received an appropriate penalty that will hopefully bring closure for the victims of this egregious fraud.”

“The blatant fraud and deceit carried out by this former attorney is unconscionable,” stated Special Agent in Charge R. Damon Rowe with IRS Criminal Investigation.  “The honesty and integrity Americans expect from their attorney must never be compromised, which is why we will continue to work with all levels of law enforcement to root out unscrupulous attorneys and hold them accountable.” 

This case was prosecuted by Special Assistant U.S. Attorney Jeffrey D. Hill, and Assistant U.S. Attorney Joseph J. M. Orabona.

DEFENDANT                        Case Number 18-cr-3075-CAB         

Clayton Marlow Anderson, Jr.           Mira Loma, CA.

SUMMARY OF CHARGES

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

Maximum penalty: 20 years’ imprisonment, $2,724,515 fine, restitution

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

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

AGENCIES

Federal Bureau of Investigation

Internal Revenue Service, Criminal Investigation

SAN DIEGO, CA – On Tuesday, November 6, 2018, a jury found defendant John Leland Combs  guilty of assault on a federal officer, in violation of 18 U.S.C. § 111, and high speed flight from a checkpoint, in violation of 18 U.S.C. § 758.

According to the evidence presented at trial, the assault occurred during the early morning hours of September 2, 2017. U.S. Border Patrol Agent Norberto M. Ribac was assigned to the Brown Field Border Patrol Station All-Terrain Vehicle (ATV) Unit patrolling in the area of Tecate, California. At approximately 5:40 a.m., Agent Ribac discovered northbound shoeprints in the sand approximately 300 yards west of the Tecate Port of Entry.  Agent Ribac followed the footprints to Industrial Road, where he discovered a single white male, later identified as Defendant John Leland Combs, standing next to his car (a stolen Hyundai Genesis) and talking on his cell phone, mere yards north of the border fence in Tecate. 

Agent Ribac approached Defendant and asked him if there was anything or anybody in the vehicle with him. Defendant stated he was alone and voluntarily opened the trunk of the vehicle for Agent Ribac to inspect.  As Agent Ribac attempted to request a registration and records checks, he noticed Defendant walking towards the vehicle’s driver side door.  Defendant then entered the vehicle in an attempt to leave the area. When Agent Ribac reached into the vehicle through the driver’s side window to turn the engine off, Combs started to drive the Hyundai Genesis with Agent Ribac’s upper body still inside the vehicle. While Agent Ribac was attempting to free himself from the moving vehicle, the vehicle struck him on his right elbow and on the right side of his head, breaking his ATV helmet.

In an attempt to flee the State Route 94 Checkpoint, Combs hit speeds over 70 mph while swerving in and out of traffic on a windy two-lane highway. As Combs veered over the cone lane and into the eastbound lane of the checkpoint, video footage showed the agents successfully deploying spike strips. As one of the agents threw the spike in front of defendant’s car, Combs delivered an obscene gesture before eventually losing control of the car and swerving into a residential driveway. He attempted to flee on foot, but was quickly arrested.

             “This office will vigorously prosecute those who assault dedicated U.S. Border Patrol agents and endanger the public with dangerous escape maneuvers,” said U.S. Attorney Adam L. Braverman. “We will not tolerate disrespect for law enforcement and cavalier disregard for community safety.”

“A Border Patrol agent was assaulted by this defendant, who then placed multiple innocent drivers and other agents at serious risk by driving recklessly through east San Diego County,” said Chief Patrol Agent Rodney S. Scott.  “I’m proud of my agents who did not allow this criminal to escape arrest, and I am grateful to the United States Attorney’s Office for their hard work and dedication to bring him to justice.”          

Combs will be sentenced on February 8, 2019 by U.S. District Court Judge Cathy Bencivengo.

The case was prosecuted by Assistant United States Attorneys Mark Conover, Ryan Sausedo and Katherine McGrath.

DEFENDANT                                                                        Case No. 17cr3026-CAB

John Leland Combs                                

AGENCIES

Department of Homeland Security, Border Patrol Intelligence

U.S. Border Patrol