Southern District of California

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

NEWS RELEASE SUMMARY – July 13, 2018

SAN DIEGO – Eight people, including a San Diego lawyer, were indicted by a federal grand jury for participating in three unrelated securities fraud crimes.

Arrests by the FBI began on July 5, 2018, and culminated July 11, 2018 when Luke Zouvas of Point Loma was taken into custody. Zouvas was charged with laundering money he believed to be proceeds of stock fraud schemes. According to court records, Zouvas was contacted by a former business associate for whom he had previously laundered stock fraud proceeds. In exchange for a money laundering fee, Zouvas agreed to pick up where the two left off years ago by funneling over $500,000 through his law firm’s client trust account.

In another indictment, Gannon Giguiere of Laguna Beach, California, was charged with manipulating the market for the stock of Eco Science Solutions, Inc. and Kelvin Medical, Inc.  According to court records, Giguiere conspired to pump up the price and volume of these stocks through manipulative trading and/or a stock promotion website designed to get innocent investors interested in buying the stock. After the stock prices rose and he dumped the shares, Giguiere pocketed more than $10 million in fraudulent proceeds from these schemes. The same indictment charges Oliver Lindsay of Grand Cayman with participating in the Kelvin Medical scheme, including by trading the conspirators’ stock through an offshore brokerage account in the Cayman Islands.

Another indictment charges a group of five individuals with manipulating the market for the stock of Arias Intel, Corp.  According to court records, this scheme included efforts to artificially inflate the price and volume of Arias Intel’s stock by controlling the majority of the company’s free-trading shares through concealed offshore accounts, coordinating press releases with expected stock promotions, and the use of high-pressure call rooms targeting innocent investors.  Each of the five defendants – Andrew Hackett of Toronto, Canada; Vikram Khanna of Porter Ranch, California; Kuldeep Sidhu of Vancouver, British Columbia; Annetta Budhu of New York, New York; and Kevin Gillespie of Tampa, Florida – spoke on recorded calls about various aspects of their scheme.

“These fraud schemes victimize all investors and compromise the integrity of our financial markets,” said U.S. Attorney Adam Braverman. “We are committed to holding accountable those who try to manipulate the system for their own profit.”

“For the United States to maintain its vibrant economy, the American people must have trust and confidence in our markets,” said FBI Special Agent in Charge John Brown.  “The FBI will continue to aggressively pursue these complex and coordinated fraud schemes in order to protect the American people and our economy.”

Giguiere has been released on a $2 million dollar bond. Sidhu has been detained pending trial.  Motions to detain Lindsay and Hackett will be heard on July 17 and 19, 2018, respectively.  Budhu and Gillespie made their first appearances in the Southern District of California on July 13, 2018, and Khanna will make his first appearance on July 27, 2018.

The Securities and Exchange Commission has also taken action against Giguiere, Lindsay, Gillespie, Budhu and Hackett.

DEFENDANTS                                           

Case Number 18cr3071-WQH                                            

Gannon Giguiere                                             Age: 46                                   Laguna Beach, CA

Oliver Lindsay                                                Age: 44                                   Georgetown, Grand Cayman

SUMMARY OF CHARGES

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

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

Maximum penalty: 20 years’ imprisonment and $5,000,000 fine

Case Number 18cr3072-BTM

Andrew Hackett                                             Age:  29                                  Toronto, Canada        

Vikram Khanna                                              Age:  53                                  Porter Ranch, CA

Kuldeep Sidhu                                                Age:  47                                  British Columbia, Canada

Annetta Budhu                                               Age:  53                                  New York, NY

Kevin Gillespie                                               Age:  49                                  Tampa, Florida

SUMMARY OF CHARGES

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

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

Maximum penalty: 20 years’ imprisonment and $5,000,000 fine

Case Number 18cr3070-JLS

Luke Zouvas                                                   Age:  47                                  San Diego, CA           

SUMMARY OF CHARGES

Money Laundering – Title 18 U.S.C., Section 1956(a)(3)(B)

Maximum penalty: 20 years’ imprisonment and fine equal to value of the funds involved in the transaction.

AGENCY

FBI (lead agency)

Securities and Exchange Commission

Criminal Prosecution Assistance Group, Financial Industry Regulatory Authority

Financial Industry Regulatory Authority

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

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

NEWS RELEASE SUMMARY – July 12, 2018

SAN DIEGO – Former U.S. Border Patrol Agent Cesar Daleo pleaded guilty in federal court today to drug charges, admitting that he conspired to distribute the precursor chemical known as “4ANPP,” the primary ingredient for manufacturing deadly fentanyl.

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

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

Daleo admitted in his plea agreement that, starting at least in December of 2016, he picked up multiple parcels at the mail box facility in San Ysidro. After picking up these parcels, which were shipped from China, Daleo was paid to transport the parcels to Mexico.

He also admitted that some of the parcels contained a substance that could be used to manufacture more illegal drugs. One kilogram of precursor 4ANPP was seized that day - enough to manufacture approximately 25 kilograms of fentanyl in a Mexican drug lab.

Daleo is scheduled to be sentenced before U.S. District Judge Gonzalo Curiel on September 28, 2018, at 8:30 a.m.

Daleo also faces federal charges in a second case, 18cr2968. He was indicted by a federal grand jury in April for conspiring to illegally smuggle sea cucumbers and sea horses protected by the Convention on International Trade in Endangered Species into the United States from Mexico.”  The next hearing is set for July 27, 2018, at 11:30 am.

DEFENDANT                                               Case Number 17-cr-3041                             

Cesar Daleo                                   Age: 47                   San Ysidro                                               

SUMMARY OF CHARGES

Conspiracy to Distribute Controlled Substances, 4ANPP – Title 21, U.S.C., Section 841 and 846

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

AGENCY

Homeland Security Investigations

U.S. Customs and Border Protection

U.S. Postal Inspection Service

U.S. Drug Enforcement Administration

U.S. Fish and Wildlife Service

NEWS RELEASE SUMMARY – July 3, 2018

SAN DIEGO – Clayton Marlow Anderson, Jr., a former attorney based in La Mesa, California before his disbarment in 2015, pled guilty today to defrauding investors and clients of over a million dollars.  Anderson also admitted to money laundering in connection with his fraud scheme, known alternatively as the “Clayton M. Anderson Monthly Income Plan”, “Anderson Plan”, or “A-Plan.” 

During a hearing this afternoon before U.S. Magistrate Judge Karen S. Crawford, Anderson acknowledged that he created “A-Plan” to solicit loans to finance the costs and fees related to construction defect lawsuits brought by his law firm.  Anderson acknowledged that from 2005 until 2014, he solicited unsecured loans from six individuals and paid them high rates of interest between 8% and 13% each year. 

As part of his plea, Anderson admitted that in 2010, owners of the Jefferson Pointe Professional Corporation (“JPPC”) hired Anderson to represent them in a construction defect lawsuit against the builders of their office park in Murrieta, California.  Anderson eventually negotiated a $1.82 million settlement for JPPC in October 2012.  Instead of paying his clients their rightful share of the legal settlement, however, Anderson sent them a letter on behalf of “A-Plan Investment Services, Inc.” promising JPPC a 13% annual return on their “investment.”  At today’s hearing, Anderson admitted that his letter contained 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.

Anderson specifically admitted that on February 19, 2013, he made a $182,549.69 bank transfer to conceal that he had already taken his client’s settlement money out of his client trust account without his client’s knowledge or consent, and to hide from his clients the precarious financial situation of both his law firm and “A-Plan.”  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 addition to these specific transactions alleged in the Information filed against him, 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, to whom he owed both legal and ethical duties,” said U.S. Attorney Adam L. Braverman.  “This prosecution 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 will investigate and bring those to justice who breach the attorney-client trust relationship by committing fraud and deceit,” commented FBI Special Agent in Charge John Brown. “Today, the Defendant Clayton Anderson, Jr., a former attorney, admitted to his A-Plan fraud scheme and will face justice for those actions.”

 “As an attorney, Anderson had a fiduciary responsibility to safeguard his client’s money.  Anderson violated his ethical duty by treating his clients’ trust account as a piggy bank,” said R. Damon Rowe, Special Agent in Charge of IRS Criminal Investigation.  “IRS Criminal Investigation will continue to protect the integrity of attorney client trust accounts, and ensure that attorneys who do not follow the duties imposed on them by law are held accountable.”

As a part of his plea agreement, Anderson agreed to pay over $1.5 million in restitution to the victims of his crimes.  Anderson faces up to 30 years in federal prison and a fine of up to $2,974,515.00 at his sentencing hearing before the Hon. Cathy Ann Bencivengo on September 28, 2018. 

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

Assistant U. S. Attorney Valerie Chu (619) 546-6750    

NEWS RELEASE SUMMARY – June 28, 2018

SAN DIEGO – Seven defendants, including a physician and two chiropractors, were charged in San Diego as part of the largest healthcare fraud enforcement action in Department of Justice history.

The national takedown involved 601 charged defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings. Of those charged, 162 defendants (including 76 doctors) were charged for their roles in prescribing and distributing opioids and other dangerous narcotics.

In San Diego, the cases include:

• Marco Antonio Chavez, a licensed medical doctor specializing in psychiatry, was charged with 30 counts of health care fraud in connection with over $928,000 in bills he submitted to TRICARE for services he never provided.  He was also charged with five counts of aggravated identity theft and one count of obstruction of a federal audit. According to the indictment, he misappropriated the personal identifying information of TRICARE beneficiaries to submit fraudulent bills to TRICARE, and then lied during the course of a subsequent federal audit. Chavez allegedly used the proceeds of his scheme to purchase, among other luxury items, a 2016 Jaguar F-type and tens of thousands of dollars in David Yurman jewelry.  On June 26, 2018, agents executed a search warrant at Chavez’s residence, and seized the Jaguar.  The United States is seeking to forfeit all proceeds of Chavez’s illegal activity.
   
• Four defendants, including two chiropractors, a physical therapist and an acupuncturist, were charged with conspiracy to commit health care fraud and honest services fraud and to pay unlawful kickbacks stemming from their operation of R.I.S.E. Medical Center.  According to the indictment, R.I.S.E. operated several “Wellness Centers” in San Diego County, including Bonita and Oceanside, and offering a range of services including physical therapy, diagnostic tests, massages, chiropractic treatments, and acupuncture. Since TRICARE and Medicare do not cover most of those benefits, the defendants misrepresented acupuncture, chiropractic, and massage services as “physical therapy,” and billed TRICARE and Medicare as if “physical therapy” had been provided.  Joserodel Zavala Candelario, a chiropractor and owner of R.I.S.E., imposed quotas for non-reimbursable services and treatments, allegedly telling staff that they were expected to provide a certain number of diagnostic tests, “no matter what”; to “grab patients in lobbies to put into provider schedules”; and to ply patients with complimentary treatments so R.I.S.E. could continue to fraudulently bill TRICARE and Medicare.  According to the indictment, the defendants fraudulently billed over $23 million to TRICARE, and over $9 million to Medicare.
   
• In addition, Candelario was also charged with paying a patient recruiter over $18,000 to refer TRICARE patients to the R.I.S.E. clinic.  The recruiter, Mariam Reyes, was charged separately with conspiring to solicit and receive kickbacks.
   
• In a separate indictment, Candelario was charged with participating in a scheme to defraud California Workers’ Compensation insurers and R.I.S.E. patients by receiving illegal kickbacks and bribes to refer patients to certain providers.  According to the indictment, Candelario paid kickbacks to his co-schemers through a front company in exchange for referrals of Workers’ Compensation patients, and then concealed these kickbacks through sham “marketing” agreements.  One of Candelario’s co-schemers, Boris Dadiomov, was charged separately for his role in the fraudulent conspiracy.  As a result of their unlawful cross-referral kickback scheme, Candelario and the other schemers received over 500 illegal patient referrals and submitted over $6.6 million in false billings to insurance companies.  
   

“With healthcare costs skyrocketing, and with patients’ well being on the line, we cannot afford the financial and physical costs of fraud,” said U.S. Attorney Adam Braverman. “Doctors are especially culpable as they are violating the sacred trust they should have with their patients. We are working hard every day to protect patients, taxpayers, ratepayers who are being exploited by those members of the medical community who prefer purchasing power over principle.”

“The FBI is fully committed to protecting our nation’s health care programs that have an impact on San Diegans,” said FBI Special Agent in Charge John Brown.  “As evidenced by the broad range of health care fraud cases announced today, the FBI and our partners have shown that we will uncover fraud affecting our public health insurance programs whether committed by a mental health professional, a chiropractor, physical therapist, acupuncturist, physician, ancillary medical service provider or a medical marketer….the health and safety of our citizens depend on it.”

“Public health insurance programs, such as Medicare and TRICARE, are not a personal pocketbook for criminals seeking to exploit government programs designed to help those who need these plans the most,” stated R. Damon Rowe, Special Agent in Charge of IRS Criminal Investigation’s Los Angeles Field Office.  “Taxpayers rightly expect individuals working in the healthcare industry that receive payments from taxpayer-funded programs to scrupulously follow the rules.  IRS Criminal Investigation will continue to protect the integrity of public health insurance programs and ensure that doctors, chiropractors, and medical service providers who profit from these illicit schemes are held accountable.”

The national takedown was announced today by Attorney General Jeff Sessions. The cases aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries.  The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department.  According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.  

According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided.  In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare.  Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings.  The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims.  Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.

The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  The Medicare Fraud Strike Force operates in 10 locations nationwide.  Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program for over $14 billion.

DEFENDANT                                               Case Number 18cr2930                               

Marco Antonio Chavez                                  

SUMMARY OF CHARGES

(Counts 1-30)

Health Care Fraud – Title 18, United States Code, Section 1347

Maximum Penalty: Twenty years’ imprisonment, $250,00 fine, restitution, forfeiture

(Counts 31-36)

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

Maximum Penalty: Mandatory two years’ imprisonment, consecutive (per count)

(Count 37)

Obstruction of Federal Audit – Title 18, U.S.C., Section 1516

Maximum Penalty: Five years’ imprisonment, $250,000 fine

DEFENDANT                                               Case Number 18cr3015                               

Boris Dadiomov                                            

SUMMARY OF CHARGES

Conspiracy to Commit Honest Services Mail Fraud and Healthcare Fraud – Title 18, U.S.C., Section 1349

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

DEFENDANTS                                            Case Number 18cr3057       

Joserodel Zavala Candelario   (1)                   

James Ward, Jr. (2)

Robert Cohen (3)

Antony Y. Lim (4)

SUMMARY OF CHARGES

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

Maximum Penalty: Five years’ imprisonment, $250,000 fine, restitution, forfeiture

Honest Services Mail Fraud – Title 18, U.S.C., Section 1341, 1346

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

Health Care Fraud – Title 18, U.S.C., Section 1347

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

Honest Services Wire Fraud - Title 18, U.S.C., Section 1341, 1346

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

DEFENDANT                                               Case Number 18cr3016                   

Meriam Reyes

SUMMARY OF CHARGES

Conspiracy to Solicit and Receive Kickbacks – Title 18, U.S.C., Section 371

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

AGENCIES

Federal Bureau of Investigation

Internal Revenue Service

Defense Criminal Investigative Service

California Department of Insurance

San Diego County District Attorney's Office

*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 A. Dale Blankenship (619) 546-6705

NEWS RELEASE SUMMARY – June 27, 2018

SAN DIEGO – Two federal indictments unsealed in San Diego today charge 20 defendants with heroin, methamphetamine, cocaine, and marijuana trafficking.

In a two-day sweep, members of the Homeland Security Investigations Gangs & Weapons Group, plus other law enforcement agencies around the county made numerous arrests and searched two locations in Spring Valley and Lemon Grove.

The yearlong investigation involved months of federal wiretaps, numerous undercover drug and gun buys and extensive surveillance. Many of the defendants are associates of criminal street gangs such as Skyline Piru, Florencia 13, Ysidro, Shelltown, Logan Heights Red Steps, Vario and Chula Vista.  The investigation revealed that some of these defendants have ties to Mexican Mafia and Mexican Drug Cartels. 

As of today at noon, sixteen of the twenty defendants are either in federal or state custody.  Authorities are continuing to search for two defendants. Six of the defendants were arraigned before U.S. Magistrate Clinton Averitte yesterday.

“Drugs are destroying lives and families and bringing violence to our communities, and we are more committed than ever to prosecuting these cases,” said U.S. Attorney Adam Braverman. “Gangs are most often the distributors of these deadly poisons, and we have a special resolve to go after them.”

HSI Special Agent in Charge David Shaw said, “Homeland Security Investigations remains committed in keeping our communities safe from drug trafficking and associated dangerous criminal activity,” said David Shaw, Special Agent in Charge for HSI in San Diego. “The arrests over the last two days demonstrate the unwavering dedication between HSI and our law enforcement partners, to address these dangerous threats facing our community.”

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 A. Dale Blankenship.

DEFENDANT          Criminal Case No: 18CR2278-CAB

Name

Age

Hometown

JOSE VARGAS-MEZA (1)

25

San Diego

JESSE RAMIREZ (2),

   aka “Junior,”

27

Chula Vista

MARTIN VILLAFANA (3),

   Aka “Gato,”

25

San Diego

SERGIO GARCIA (4),

   aka “Checko,”

27

San Diego

JAMAAR RASHAAD CODRINGTON (5),

   aka “Buzz,”

38

San Diego

CHRISTIAN RAMIREZ (6)

28

Chula Vista

JENNIFER LIEGH ZAYAS (7)

37

El Cajon

24

San Diego

PRENTICE TAULAUO TEO (9)

46

San Diego

RICKY RICARDO SIMMONS (10),

   aka “Daz,”

38

Spring Valley

JERMAINE SAYLES (11)

38

San Diego

LARON WALLACE (12),

   aka “Skinny,”

38

San Diego

ALEXANDER AGENCIA SANTOS (13),

   aka “Lex,

35

San Diego

LAMONT CHARLES YOUNG (14)

20

San Diego

TARA LYNN JONES (15)

34

San Diego

RICO WELCH (16)

46

San Diego

SUMMARY OF CHARGES

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

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

Conspiracy to Distribute Marijuana (Title 21, U.S.C., Secs. 841(a)(1), 846); Possession of Methamphetamine with Intent to Distribute (Title 21, U.S.C, Secs. 841(a)(1)).

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

40 years in prison, with a mandatory minimum sentence of 5 years and a $5 million fine.

DEFENDANTS                                                                   Criminal Case No: 18CR2970-CAB

Name

Age

Hometown

VICTOR CARRASCO (1),

   aka “Mico,”

54

San Diego

24

San Diego

MARIO ZUNIGA-BARRAGAN (3),

49

San Diego

CESAR AGUILAR RODRIGUEZ (4),

26

San Diego

SUMMARY OF CHARGES

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

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

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

Possession of Heroin 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; for heroin charge:

20 years in prison and a $1 million fine.

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

AGENCIES

Homeland Security Investigations – Gang and Weapons Group

San Diego Police Department

San Diego County Sheriff’s Department

Chula Vista Police Department

San Diego County Probation Department

San Diego District Attorney’s Office

California Department of Corrections and Rehabilitation

San Diego Fugitive Task Force

United States Bureau of Prisons – Joint Intelligence Sharing Initiative

ICE Enforcement and Removal Operations

United States Border Patrol K-9

Customs and Border Protection Air and Marine Operations

Federal Bureau of Investigation 

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

NEWS RELEASE SUMMARY – June 26, 2018

SAN DIEGO – A pharmacy in Lakeside, California and its owners have paid $75,000 to resolve allegations that they failed to properly account for highly addictive and frequently abused opioids, including fentanyl. 

The settlement is with Archana Corporation and its owners Rajeshbhai Zalavadiya and Ramesh Rakholia.  The Archana Corporation, Zalavadiya, and Rakholia do business as Leo’s Lakeside Pharmacy. 

This settlement arises from a Drug Enforcement Administration (DEA) investigation into Leo’s Lakeside Pharmacy’s opioid dispensing practices.  In response to the Justice Department’s focus on combatting the opioid epidemic, the DEA has continued to conduct inspections and audits at pharmacies throughout the Southern District of California.  Leo’s Lakeside Pharmacy was one of those pharmacies. Based on the DEA’s inventory audits, inspections, and other investigative activities, the United States asserts that Leo’s Lakeside Pharmacy violated the Controlled Substances Act (CSA).

The CSA applies to all registered controlled substances handlers, including pharmacies.  The CSA also subjects registered pharmacies to strict requirements regarding inventory control and recordkeeping.  These requirements ensure that pharmacies account for controlled substances from the time of purchase until they are dispensed to patients.  The alleged violations include failure to keep accurate records associated with pharmaceutical fentanyl, oxycodone, and hydrocodone

“This settlement illustrates the United States Attorney’s Office’s continued commitment to combatting the opioid epidemic on all fronts,” said U.S. Attorney Adam Braverman. “Part of our strategy is making sure that registered opioid handlers keep accurate records of these highly addictive and extremely dangerous drugs.  All pharmacies, whether large or small, will be held accountable.”

In addition to paying $75,000 in settlement to the government, Leo’s Lakeside Pharmacy has committed to implementing new inventory control procedures to assure full accountability of all controlled substances.  .

“This investigation is a reminder to the pharmacy community that lax recordkeeping opens the door to the diversion of highly addictive pharmaceuticals,” states Drug Enforcement Administration San Diego Field Division Special Agent in Charge Karen Flowers. “These pills can and do make their way into the illegal distribution stream of narcotics which continue to fuel the opioid epidemic.”  

Report illicit pharmaceutical activities and prescription abuse to DEA at 877-RX-Abuse (877-792-2873).

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 and the Drug Enforcement Administration.

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

NEWS RELEASE SUMMARY – June 22, 2018

SAN DIEGO – Terry Lee Taylor was indicted by a federal grand jury this morning on four counts of bank robbery and attempted bank robbery. His alleged accomplice, Trinity Arvin Keara Jones, was also charged.

According to the indictment, Taylor robbed three area banks and attempted to rob a fourth between June 9, 2018 and June 18, 2018. 

On June 9, 2018, Taylor is alleged to have robbed the US Bank located at 9400 Mira Mesa Boulevard in San Diego, California. During that robbery, Taylor passed a note to the teller that demanded $3,000 in $100 denominations. Taylor’s note specified that he had a gun and was willing to shoot everyone in the bank if his demands were not met. Taylor robbed the bank of approximately $1,879.

Three days later, on June 12, 2018, Taylor is alleged to have robbed the Chase Bank located at 1467 Main Street in Ramona, California. He presented a note to the bank teller which informed her that he had a gun and that he wanted all the money in the top drawer. The note again threatened the lives of everyone in the bank if his demands were not met. After receiving $4,696, Taylor fled the bank.

On June 14, 2018, Taylor allegedly attempted to rob the Bank of America located at 1407 Main Street in Ramona, California. Thanks to the diligence of a bank employee, who recognized a security photograph from the Chase Bank robbery, this robbery failed. After recognizing Taylor, a bank employee immediately pressed the alarm and called 911. Taylor, who appeared nervous, fled the bank without money.

On June 18, 2018, Taylor allegedly robbed the US Bank located at 12265 Scripps Poway Parkway in Poway with the assistance of Jones. Jones scouted the bank by entering the bank and speaking with a teller. Jones then left the bank, and Taylor entered the bank. Taylor presented a note to the bank teller. The note threatened deadly force and demanded money. Taylor then fled with $2,295. Jones allegedly drove the getaway vehicle with Taylor in the passenger seat.

Subsequent investigation identified Taylor as the robber. He was arrested on June 18 in San Diego and is scheduled to be arraigned on July 3, 2018 at 10 a.m. before U.S. Magistrate Judge Karen S. Crawford. Jones was taken into custody on June 19 in Ramona.

During the investigation, the FBI nicknamed the unidentified robber as the “Skinny Bandit” based on his description.

DEFENDANTS                                            Case Number 18-cr-2991-JM                                                          

Terry Lee Taylor                                             Age: 23                       San Diego, CA           

Trinity Arvin Keara Jones                              Age: 18                       Ramona, CA              

SUMMARY OF CHARGES

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

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

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

AGENCIES

Federal Bureau of Investigation

San Diego Sheriff’s Department

San Diego Police Department

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

NEWS RELEASE SUMMARY – June 13, 2018

SAN DIEGO – Drug trafficker Salvador Ojeda-Amarillas, who fled during his 2009 trial and was arrested years later in Mexico, was sentenced to 20 years in prison today for smuggling 66 pounds of pure methamphetamine from Mexico and distributing it throughout San Diego.

According to court records, from 2003 and 2007, Ojeda conspired with other drug traffickers to have pounds of methamphetamine smuggled into San Diego from Mexico, and distributed throughout San Diego County.  Using court-authorized wiretaps on numerous cell phones, Drug Enforcement Administration special agents intercepted dozens of calls where Ojeda and others discussed logistics for their drug operations.

DEA special agents arrested Ojeda on May 17, 2007 when they executed a search warrant on Ojeda’s San Diego residence – in conjunction with 17 other search warrants executed by DEA throughout the county. Inside Ojeda’s home, DEA seized three firearms, including a loaded rifle located within arm’s reach of Ojeda’s bed, and a digital scale that tested positive for methamphetamine residue.

Ojeda’s trial began in May 2009. During the second week of trial -- after listening to dozens of intercepted calls where he heard himself using coded language to conduct drug deals, and the testimony of four cooperating defendants who received deliveries of pounds of methamphetamine from Ojeda -- Ojeda had heard enough. He cut his GPS bracelet and fled to Mexico.

Ojeda was convicted by the jury in absentia. Ojeda eluded arrest in Mexico for several years. He was eventually arrested in Mexico and extradited back to the United States in 2016.

In court today, U.S. District Judge William Q. Hayes said the government presented a very strong case at trial and the evidence against Ojeda was “overwhelming.” The case was aggravated, in part, based on the amount and type of substance – 66 pounds of pure methamphetamine smuggled from Mexico and distributed throughout San Diego over the course of multiple years. Judge Hayes said that a 20-year-sentence was appropriate because Ojeda was a leader of an extensive drug trafficking organization, possessed firearms at his home during the conspiracy, and he obstructed justice. 

“This defendant found out today that the United States never forgets,” said U.S. Attorney Adam Braverman. “Ojeda listened to mountains of evidence against him and decided to flee. The outcome of this case is a reminder that the government will pursue those who peddle drugs and violence in our communities for as long as it takes, and the consequences of running are severe.”

“Today’s sentence was the solid end of a comprehensive DEA investigation focusing on methamphetamine trafficking organizations in San Diego,” said DEA San Diego Special Agent in Charge Karen Flowers. “Methamphetamine is a dangerous drug that continues to have a devastating impact on our society. The DEA will continue to work to bring methamphetamine traffickers to justice and make San Diego a safer place.”

This case is part of a multi-year investigation led by the DEA in Southern District of California that, in total, resulted in the arrest of 48 people, the seizure of 68 pounds of methamphetamine, 15 firearms, and approximately $295,000 in U.S. Currency.

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

DEFENDANT                                       Criminal Case No. 07-CR-1408-WQH

Salvador Ojeda Amarillas  Age: 62                Culiacan, Mexico

SUMMARY OF CHARGES

Conspiracy to Import Methamphetamine, in violation of Title 21 U.S.C. §§ 952, 960 and 963. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $4,000,000 fine, and a term of supervised release of at least 5 years and up to life.

Conspiracy to Distribute Methamphetamine, in violation of Title 21 U.S.C. §§ 841 and 846. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $4,000,000 fine and and a term of supervised release of at least 5 years and up to life.

AGENCIES

Drug Enforcement Administration (San Diego Field Office)

Internal Revenue Service – Criminal Investigations

Bureau of Alcohol, Tobacco, Firearms, and Explosives

Homeland Security Investigations

Customs and Border Protection

United States Marshals Service

Federal Bureau of Investigation

Escondido Police Department

National City Police Department

San Diego County Sheriff’s Office

OTHER RELATED CASES

United States v. Andres Chavez-Chavez, et al., 07-CR-1408-WQH

Andres Chavez-Chavez - 210 months prison

David Chavez-Chavez - 121 months prison

Joel Chavez-Chavez - 121 months prison

Miguel Sandoval-Valencia - 51 months prison

Luis Sandoval-Valencia - 97 months prison

Carlos Perez - 108 months prison

Ricardo Madrigal - 51 months prison

Ismael Pena - 63 months prison

Teresa Hermasillo - 41 months

Rosa Arellano - 33 months prison

Ruben Hernandez-Romero - 72 months prison

Joaquin Bucio-Rodriguez - 120 months prison

United States v. Salvador Chavez-Chavez, et al., 07-CR-1407-WQH

Salvador Chavez-Chavez - 91 months prison

Julio Lua-Chavez - 121 months prison

Gerardo Casanova- 51 months prison

United States v. Edurardo Barajas, et al., 07-CR-2985-WQH

Eduardo Barajas - 120 months prison

Victor Ramos - 144 months prison

Alejandro Velarde - 53 months prison

Miguel Rivera Medina - 97 months prison

Jacob Tellaeche - 120 months prison

Thomas Alejadro Manzano - 120 months prison

Julio Cesar Jimenez - 70 months prison

Ernesto Roman Lopez - 63 months prison

United States v. Jose Torres-Gamino, et al., 07-CR-1545-WQH

Jose Torres-Gamino - 63 months prison

Uriel Estrada-Cardenas - 60 months prison

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

NEWS RELEASE SUMMARY – June 18, 2018

SAN DIEGO – Beverly Hills Radiologist Ronald Grusd and two of his corporations, California Imaging Network Medical Group and Willows Consulting Company, were sentenced in federal court today after a jury trial in December resulted in convictions on 39 felony fraud counts.

U.S. District Judge Cynthia A. Bashant imposed a sentenced of 10 years in custody and a fine of $250,000, and remanded Dr. Grusd into custody. His companies, California Imaging Network and Willows Consulting Company, were each required to pay a $500,000 fine, and an additional $15,600 in special assessments.

According to evidence presented at trial, Dr. Grusd and his companies paid kickbacks for patient referrals from multiple clinics in San Diego and Imperial counties in order to fraudulently bill insurance companies over $22 million for medical services.

Dr. Grusd negotiated with various individuals, including a primary treating physician, the payment of kickbacks for the referral of workers’ compensation patients for various medical services, including MRIs, ultrasounds, Shockwave treatments, toxicology testing and prescription pain medications. After the patients were referred for the treatment or service, one of Dr. Grusd’s companies, California Imaging Network Medical Group, would fraudulently bill insurance companies for the procedures, concealing from both the patients and the insurers that substantial kickbacks had been paid in violation of California law. Another of Dr. Grusd’s companies, Willows Consulting Company, funneled the kickback payments to those directing the referral of the patients from the various clinics. Records presented at trial showed that Dr. Grusd paid over $100,000 in bribes to secure the billings for hundreds of patients, with bribes paid on a per-patient or per-body-part formula.

Dr. Grusd and the corporations were originally indicted by a federal grand jury in November 2015, when the U.S. Attorney’s Office and the San Diego District Attorney’s Office, working in conjunction with the Federal Bureau of Investigation and the California Department of Insurance, announced multiple arrests arising from a long-term, proactive health care fraud investigation targeting corruption and fraud in the California Workers’ Compensation system.                                              

Grusd’s practice, California Imaging Network Medical Group, operated clinics throughout California in San Diego, Los Angeles, Beverly Hills, Fresno, Rialto, Santa Ana, Studio City, Bakersfield, Calexico, East Los Angeles, Lancaster, Victorville and Visalia.

In imposing sentence, District Judge Bashant expressed concern that by paying incentives, Dr. Grusd applied pressure on the referring physician, and “made it highly questionable if all services were necessary,” a harm that the laws were designed to prevent. 

Judge Bashant found that Dr. Grusd “clearly knew what he was doing.”  Dr. Grusd, who had testified as to his extensive education, training, and expertise as a highly-decorated radiologist, claimed on the witness stand at trial that he was confused and did not know that what he was doing was illegal.  Judge Bashant rejected this view, stating that Dr. Grusd was someone who decided to “find a way to defraud…then act dumb on the witness stand” when he got caught.  She imposed a sentencing penalty for Obstruction of Justice, finding that Grusd unequivocally committed perjury and lied at trial.  The judge said she was concerned about the need for both general and specific deterrence: general, because health care fraud is an area where criminals are rarely caught, requiring a significant consequence in order to deter other would-be criminals.  In this case, specific deterrence was also applicable, because, in her view, there was a risk that Dr. Grusd could engage in further unlawful conduct in the future.  “Dr. Grusd,” she noted, was someone who would “act smart enough to pull the wool over everyone’s eyes.”  

“A patient entrusts his life to his physician,” said U.S. Attorney Adam Braverman. “A doctor’s medical decisions should be based on the best interest of the patient, not the highest bidder. The court recognized that Dr. Grusd perverted that sacred relationship by buying and selling patients – oftentimes on a per-body-part basis – to fuel his personal lifestyle.”

U.S. Attorney Braverman commended the efforts of the Federal Bureau of Investigation and the California Department of Insurance to investigate these offenses, and thanked San Diego District Attorney Summer Stephan and her office for collaborating with the United States Attorney’s Office on this investigation.

San Diego FBI Special Agent-In-Charge John A. Brown applauded today's sentence as indicative of how the insidious malignancy embodied by the payment of illegal bribes to and from medical providers seriously degrades the patient-physician relationship and places patients at risk. “Operation Backlash  exemplifies the positive impact the Federal Bureau of Investigation, working side by side with our investigative partners, the California Department of Insurance, and the San Diego District Attorney's Office, can have against those medical service providers who so easily replace honest patient care with greed. The FBI will continue to leverage these partnerships to  expose these schemes and hold  physicians and allied medical professionals accountable.”

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                                Case Number: 15cr2821-BAS                     

Ronald Grusd                                                              Los Angeles, CA       

California Imaging Network Medical Group             Incorporated in 2007              

Willows Consulting Company                                   Incorporated in 2011              

SUMMARY OF CHARGES

Conspiracy to Commit Honest Services Mail Fraud, Mail Fraud, Wire Fraud, and Health Care Fraud, in violation 18 U.S.C. 1349

Maximum Penalty: 20 years in custody; $250,000 fine, or twice the pecuniary gain or loss; three years’ supervised release; restitution to victims of the offense; forfeiture

Honest Services Mail and Wire Fraud, in violation of 18 U.S.C. Secs. 1341, 1343 and 1346 (18 Counts)

Maximum Penalty (each count): 20 years in custody; $250,000 fine or twice the pecuniary gain or loss; three years’ supervised release; restitution to victims of the offense; forfeiture

Health Care Fraud, in violation of 18 U.S.C. 1347, (14 Counts)

Maximum Penalty (each count): 20 years in custody; $250,000 fine or twice the pecuniary gain or loss; three years’ supervised release; restitution to victims of the offense; forfeiture

Travel Act, in violation of U.S.C. 1952 (6 Counts)

Maximum Penalty: Five years in custody; $250,000 fine or twice the pecuniary gain or loss; three years’ supervised release; restitution to victims of the offense; forfeiture

INVESTIGATING AGENCIES

Federal Bureau of Investigation

San Diego County District Attorney’s Office

California Department of Insurance

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

NEWS RELEASE SUMMARY – June 12, 2018

SAN DIEGO – Johnny Martin, a former supervisor in the Department of Homeland Security, was arraigned in federal court today on an indictment charging him with lying to the Federal Bureau of Investigation about his improper transmission of sensitive law enforcement information. The charges against Martin stem from an investigation into a massive immigration fraud scheme involving over 150 victims and millions of dollars in losses.

According to the indictment, FBI agents approached Martin in June 2017 and asked about his dealings with an individual who had shared information with Martin and from 2010 to 2012.  In fact, Martin was well acquainted with this individual. While still employed by Homeland Security Investigations (HSI) in 2015 and 2016, Martin had improperly searched a confidential law enforcement database on more than a dozen occasions for names provided by this individual. Martin then created new documents containing the confidential information, and used his personal email account to send the documents he created to the individual.

During the June 2017 interview, agents showed Martin an example of the sensitive information that he had personally extracted from a confidential law enforcement database, and had emailed directly to the individual. This document contained the personally identifiable information, immigration history, and criminal history of someone whom the individual had victimized in his immigration fraud scheme, and agents were attempting to determine how the individual had obtained this document. According to the indictment, Martin falsely claimed to agents that he had no idea how the document had been transmitted to the individual, and falsely denied sending the document or any other law enforcement sensitive information to the individual.

Martin’s case is related to a separate immigration fraud case pending against Hardev Panesar, Rafael Hastie, and Gurdev Singh (Case No. 17CR1371-GPC).  According to the indictment in that case, Panesar and Hastie posed as Department of Homeland Security agents and defrauded their victims by claiming that they could obtain immigration status and stop deportation proceedings in exchange for exorbitant fees. According to statements and filings made in court in that case, Panesar and Hastie were able to convince victims they were bona fide federal agents by, in part, presenting them with confidential information obtained from law enforcement databases.

Martin, who is no longer employed by HSI, was released on bond and is scheduled to appear before U.S. District Judge Gonzalo P. Curiel on July 27, 2018.

DEFENDANT                                   Case Number:   18CR2835-GPC

Johnny MARTIN                                Age: 59               Chula Vista, California

SUMMARY OF CHARGE

Count 1: 18 U.S.C. § 1001, Making a False Statement to a Federal Agent

Maximum Penalties: 5 years’ imprisonment, $250,000 fine, 3 years’ supervised release.

AGENCIES

Federal Bureau of Investigation

Customs and Border Protection - Office of Field Operations

Customs and Border Protection - Office of Professional Responsibility

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

Assistant U.S. Attorney Nicholas W. Pilchak and Matthew J. Sutton (619) 546-9709 and (619) 546-8941

NEWS RELEASE SUMMARY – June 1, 2018

SAN DIEGO – The leader of a credit card fraud ring that stole account information from dozens of San Diego residents and used it to purchase over $70,000 of merchandise at area retailers was sentenced in federal court today to 51 months in prison.

U.S. District Judge John A. Houston sentenced the ringleader, Daniel Stephen Wray, following his January 18, 2018 guilty plea to conspiracy to use counterfeit access devices.  Wray was also ordered to pay $76,489.35 in restitution.

As detailed in the plea agreement, indictment, and other publicly-filed court documents, Wray recruited multiple co-conspirators to join his ring of credit card fraudsters in late 2016. Wray then provided these individuals with counterfeit access devices—credit cards bearing altered names, but encoded with real credit card numbers for the accounts of unwitting victims—and drove them to San Diego-area stores.

Investigators believe that many of the victims’ identities and credit card numbers were stolen after Wray and his co-conspirators installed a skimmer at a La Jolla, California gas station. A skimmer is a device capable of reading and recording account information, including customer names, account numbers, and personal identification numbers, from credit and debit cards. After creating the fraudulent credit cards with the stolen credit card numbers, Wray and his co-conspirators then used them to purchase tens of thousands of dollars of merchandise from multiple San Diego retailers, including Costco and Smart N Final.

Wray admitted his role as the leader of the fraudulent scheme, acknowledging that he obtained dozens of counterfeit and unauthorized access devices from multiple victims in San Diego County and then directed his associates to use these fraudulent credit cards to make tens of thousands of dollars in purchases, ranging from Apple iPads, luxury wristwatches, gold and silver, and significant quantities of liquor and energy drinks from large San Diego retailers. According to court filings, Wray rapidly resold or distributed the stolen property on the black market. 

Wray also admitted to being previously convicted of illegally possessing 269 counterfeit credit cards in 2014. In fact, according to court records, Wray was on supervised release for his prior credit card fraud conviction when he committed this crime, and even recruited his accomplices from the halfway house where he was serving his supervised release term. 

At sentencing this morning, Judge Houston noted Wray’s lengthy and serious prior criminal record, his aggravating role in the offense, and the effect of identity theft on the lives of ordinary citizens. The judge said Wray’s identity theft conduct “destroys lives.”

“Identity thieves cannot victimize citizens of our district with impunity,” said U.S. Attorney Adam L. Braverman. “To anyone who considers credit card fraud a quick and easy payday: this office will investigate and prosecute you, and you will face the consequences.” 

“Today’s sentencing is a reminder that financial crimes are not victimless crimes,” said United States Secret Service Special Agent in Charge Brian S. Christensen. “The defendant and his conspirators victimized the community of San Diego for their own personal gain by taking advantage of multiple local merchants. The U.S. Secret Service and its law enforcement partners will continue to investigate and pursue prosecution of those who engage in identity theft or financial fraud.”

The San Diego Regional Fraud Task Force (SDRFTF), conducted the investigation that led to the successful prosecution of this defendant. The SDRFTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in San Diego County. Partnering in this effort are the United States Attorney's Office for the Southern District of California, the United States Secret Service, the San Diego Police Department, and the San Diego County District Attorney’s Office, along with other state and local partners. The case is being prosecuted by Assistant U.S. Attorneys Nicholas W. Pilchak and Matthew J. Sutton.

DEFENDANT                                                                   Case Number 17CR3856-JAH                  

Daniel Stephen Wray                                                        Age: 29                   San Diego, California                   

SUMMARY OF CHARGES

Conspiracy to Commit Access Device Fraud, in violation of Title 18 U.S.C. § 1029; Term of custody including 20 years in prison, $250,000 fine and 3 years supervised release and mandatory restitution.

AGENCIES

San Diego Regional Fraud Task Force:

- United States Secret Service

- San Diego Police Department

- San Diego District Attorney’s Office

Assistant United States Attorneys A. Dale Blankenship (619) 546-6705 and Jonathan Shapiro (619) 546-8225

SAN DIEGO – Twenty-three defendants were charged in five indictments unsealed in federal court with conspiracy to distribute cocaine and cocaine base (“crack”), distribution of cocaine and cocaine base, conspiracy to distribute methamphetamine, distribution of methamphetamine, and money laundering.

Beginning early yesterday morning, members of the FBI Violent Crimes Task Force, plus other law enforcement agencies, made numerous arrests stemming from the indictments.  As of noon today, nineteen of the twenty-three defendants are either in federal or state custody. Authorities are continuing to search for four defendants.

The crackdown announced today is the latest in a series of efforts by the Department of Justice to turn the tide of the drug epidemic and reduce the inevitable violent crime that accompanies widespread drug trafficking by gangs.

“Today’s announcement is another strong message to those gang members that operate on the streets of San Diego,” said U.S. Attorney Adam L. Braverman. “If you peddle drugs, we will come after you with the full force of the federal government.”

FBI Special Agent in Charge John Brown commented, "The FBI is proud to be in the fight to keep our communities safe, free from drug trafficking and associated dangerous criminal activity.  Yesterday's arrests demonstrates the unwavering commitment, between and among the FBI and our law enforcement partners, to address these dangerous threats facing our community."

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

The United States is represented in court by Assistant U.S. Attorneys Jonathan Shapiro and A. Dale Blankenship.

Defendant Information

DEFENDANT                                                                    Criminal Case No: 18CR2490-GPC

Name

Age

Hometown

Norman Cluke

28

San Diego, CA

SUMMARY OF CHARGES

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

Maximum Penalties: 20 years in prison and a $1 million fine.

DEFENDANTS                                                                 Criminal Case No: 18CR2491-GPC

Name

Age

Hometown

Fernando Cruz-Chavez aka “Fredy”

31

San Diego, CA

Sitlali Lopez

25

San Diego, CA

Armando Ceja Gonzalez

Aka “Pistolerin”

31

San Diego, CA

SUMMARY OF CHARGES

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

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

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

DEFENDANTS                                                     Criminal Case No: 18CR2492-GPC

Name

Age

Hometown

Henry Hendrix

aka “Feeny Boy”

56

San Diego, CA

SUMMARY OF CHARGES

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

Distribute of Methamphetamine (Title 21, U.S.C., Secs. 841(a)(1)).

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

DEFENDANT                                                        Criminal Case No: 18CR2493-GPC

Name

Age

Hometown

Roshawn Maurice Walls

aka “Ray Dog”

49

San Diego, CA

SUMMARY OF CHARGES

Distribution of Cocaine (Title 21, U.S.C, Secs. 841(a)(1))

Maximum Penalties: 20 years in prison and a $1 million fine.

DEFENDANT                                                        Criminal Case No: 18CR2494-GPC

Name

Age

Hometown

Joshua Eugene Quipp

aka “QTip”

33

San Diego, CA

Edna Monserrat Perez-Tapia

aka “Monsay”

31

San Diego, CA

Jose Antonio Jacinto Jr.

23

San Diego, CA

Cuathemoc Solis

aka “Jr.” aka “Temo”

38

San Diego, CA

Corey Michael Davis

aka “Word”

35

San Diego, CA

Darius Latrell King

aka “Tiny Mike”

31

San Diego, CA

Alejandro McFadden

aka “Flav”

47

San Diego, CA

Charles Joseph Brimmer

aka “Demon”

31

San Diego, CA

Myron Xavier Castro Jr.

aka “Hard Dog”, aka “HD”

32

San Diego, CA

Julius Davis

aka “Labacl”

58

San Diego, CA

James Edward Staton

aka “State Rock”

58

San Diego, CA

Anthony Ray Rhodes

aka “Big A”

55

San Diego, CA

Anthony Frederick Miller

aka “Dread”

62

San Diego, CA

Richard Kelvin Brown

aka “Dreads”

60

San Diego, CA

Shawn Monique King

aka “SK”

48

San Diego, CA

Timothy Raynard Moore

29

San Diego, CA

Linda Quipp

28

San Diego, CA

SUMMARY OF CHARGES

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

Conspiracy to Launder Money (Title 18, U.S.C., Secs 1956(h), 1956(a)(1)(A)(i).

Maximum Penalties: For cocaine charges: life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.  For money laundering conspiracy charges: 20 years in prison and a $250,000 fine.

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

AGENCIES

Federal Bureau of Investigation’s Violent Crimes Task Force – Gang Group, which includes the Federal Bureau of Investigation,

San Diego Police Department,

San Diego County Sheriff’s Office,

National City Police Department,  

California Department of Corrections and Rehabilitation,

United States Bureau of Prisons,

San Diego Probation Department, and

San Diego District Attorney’s Office

Assistant U. S. Attorney Christopher Alexander (619) 546-6665

NEWS RELEASE SUMMARY – May 21, 2018

SAN DIEGO – Juan Alejandro Castro-Reza, the pilot of a panga style boat, was sentenced in federal court Monday to 24 months in prison for bringing 11 undocumented immigrants into the United States from Mexico.

Castro-Reza and Javier Guadalupe Lerma-Enriquez pleaded guilty in connection with the events of November 18, 2017, when the U.S. Border Patrol observed the vessel on the open sea operating at night and heading at a high rate of speed for an area about a mile north of the international border.  Upon making landfall, the vessel’s 13 occupants fled before being apprehended by Border Patrol agents. 

U.S. Border Patrol agents identified all of the vessel’s occupants as citizens of Mexico without any legal right to enter the United States.  Through investigation, agents learned that Lerma-Enriquez was to guide the smuggled aliens once they were inside the United States. 

At sentencing, U.S. District Judge Cathy Ann Bencivengo found that Castro-Reza’s conduct created a substantial risk to the immigrants on board the vessel and noted that he had smuggled immigrants using a panga boat before.

“Smugglers who have no regard for the safety of immigrants are stuffing people into their trunks, abandoning them in treacherous terrain and cramming way too many onto small boats to take a dangerous journey across the ocean,” said U.S. Attorney Adam Braverman. “Our anti-smuggling efforts are in full force because we want to save lives. Today’s sentence is another step toward that goal.”

DEFENDANTS                                            Case Number 17CR4227-CAB                                           

Juan Alejandro Castro-Reza                          Age: 45                                   San Felipe, B.C., Mexico

Javier Guadalupe Lerma-Enriquez                 Age: 23                                   Los Mochis, Sinaloa, Mexico

SUMMARY OF SENTENCES

DEFENDANTS                                SENTENCE

Juan Alejandro Castro-Reza               24 months of custody, 3 years of supervised release, no fine, and a special assessment of $100.00

Javier Guadalupe Lerma-Enriquez     12 months and one day of custody, 3 years of supervised release, no fine, and a special assessment of $100.00

SUMMARY OF CHARGES

Bringing in Undocumented Aliens and Aiding and Abetting – Title 8, U.S.C., Section 1324(a)(1)(A)(i) and (v)(II).

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

AGENCIES

United States Border Patrol

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

NEWS RELEASE SUMMARY – May 21, 2018

SAN DIEGO – William Francis Walsh IV, a former Marine who worked at a fire station on Camp Pendleton, was sentenced today to 210 months in federal custody for distribution and possession of images of minors engaged in sexually explicit conduct.

Walsh, 55, was arrested in May of 2017 and charged with two counts of distribution and one count of possession of images of minors engaged in sexually explicit conduct based upon his use of a peer-to-peer file-sharing program to distribute and download the images.

Walsh pleaded not guilty to the charges, and evidence was presented at a four-day federal jury trial in February of 2018. The jury heard testimony from law enforcement officers from the Escondido Police Department regarding the nature of the online investigation, the items seized at Walsh’s house pursuant to a search warrant, and the computer forensic evidence. Evidence at trial showed Walsh had downloaded hundreds of files with names indicative of child pornography through use of the peer-to-peer file sharing software. Following deliberations, the jury found him guilty of all charges.

At sentencing, Walsh declined to make a statement, and his counsel noted he continues to dispute the charges. U.S. District Judge Anthony J. Battaglia noted the long-term suffering of victims depicted in child pornography.  In comparing Walsh to the range of offenders sentenced for similar offenses, the judge said Walsh’s conduct was “on the extreme end of the cases I have seen.”

“Today a man who committed terrible crimes against children was sentenced to many years in prison,” said U.S. Attorney Adam Braverman. “These horrible experiences will echo in the hearts and minds of young victims for a lifetime, and I am deeply distressed and deeply committed to pursuing cases that will protect our vulnerable youth from people like Walsh.”

“Today’s sentence confirms that this predator can no longer victimize innocent children because he is off the streets and he is offline,” said FBI Special Agent in Charge John Brown. “This investigation showcases the success of collaborative federal and local investigations working toward a common goal.”      

DEFENDANT                                               Criminal Case No. 17cr1269-AJB

William Francis Walsh IV       Age: 55                     Vista, CA

SUMMARY OF CHARGE

• Counts 1 and 2 - Title 18, United States Code, Section 2252(a)(2), Distribution of Images of Minors Engaged in Sexually Explicit Conduct;
• Count 3 – Title 18, United States Code, Section 2252(a)(4)(B), Possession of Images of Minors Engaged in Sexually Explicit Conduct

Maximum penalties:

• Counts 1 and 2 – 20 years in prison, with a mandatory 5 years in prison
• Count 3 – 20 years in prison
• As to all Counts, $250,000 fine

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Escondido Police Department

Rabobank National Association (Rabobank), a Roseville, California subsidiary of the Netherlands-based Coöperatieve Rabobank U.A., was sentenced today by U.S. District Judge Jeffrey T. Miller of the Southern District of California for impairing, impeding and obstructing its primary regulator, the Department of the Treasury’s Office of the Comptroller of the Currency (the OCC), by concealing deficiencies in its anti-money laundering (AML) program and for obstructing the OCC’s examination of Rabobank.  Rabobank was sentenced to a two-year term of probation, and ordered to pay the statutory maximum fine of $500,000.  Additionally, as part of its guilty plea, Rabobank forfeited $368,701,259 to the United States as a result of allowing illicit funds to be processed through the bank. 

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Adam L. Braverman for the Southern District of California, Special Agent in Charge Dave Shaw of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in San Diego and Special Agent in Charge R. Damon Rowe of Internal Revenue Service Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement. 

“Rabobank’s branches on the Mexican border processed hundreds of millions of dollars in suspicious transactions likely tied to international narcotics trafficking, organized crime, and money laundering,” said Acting Assistant Attorney General Cronan.  “Instead of filing reports that would have alerted law enforcement to the suspicious activity, as required by law, the bank looked the other way and then compounded its misconduct by conspiring to cover-up its failures and deceiving its regulator.  Today’s sentence and the related forfeiture demonstrate that the Department of Justice will use all the tools at our disposal to combat drug trafficking and transnational crime—including prosecuting financial institutions that turn a blind eye to illicit proceeds moving through their customers’ accounts.” 

“The U.S. Attorney’s Office is intent on securing our border and preventing the laundering of narco-dollars through financial institutions like Rabobank,” said U.S. Attorney Braverman.  “In doing so we will safeguard our communities and protect our citizens from drug traffickers and corporate criminals alike.”

 “It is the responsibility of Homeland Security Investigations (HSI) to monitor and investigate illicit activity that exploits the global infrastructure, particularly in financial systems,” said HSI San Diego Special Agent in Charge, Dave Shaw.  “This complex investigation revealed, and Rabobank admits, that Rabobank was aware of the extreme risk involved in processing million dollar financial transactions linked to transnational crime and international money laundering – activity which plagues the southwest  border.  Today’s sentencing and the significant forfeitures in this case sends a strong message to financial institutions that illicit financial activity inside banking institutions will not be tolerated.”

“Rabobank’s sentencing today is a victory for all Americans and sends a strong message about the need for transparency in banking and ultimately contributes to the fight against money laundering,” said IRS-CI Special Agent in Charge Rowe. “IRS-Criminal Investigation works diligently with our law enforcement partners to ensure funds obtained through illegal means do not find their way into our financial institutions.”

On Feb. 7, Rabobank pleaded guilty to conspiracy to defraud the United States and to corruptly obstruct an examination of a financial institution.  Specifically, Rabobank admitted to conspiring with several former executives to defraud the United States by unlawfully impeding the OCC’s ability to regulate the bank and to obstruct the OCC’s 2012 examination of Rabobank’s Bank Secrecy Act (BSA)/AML compliance program.  In connection with that guilty plea, Rabobank admitted that between 2009 and 2012 it implemented BSA/AML policies and procedures that precluded and suppressed its investigations into potentially suspicious transactions near the U.S.-Mexico border, much of which was conducted by customers and through accounts that Rabobank had previously designated “High-Risk.” 

As a result of its BSA/AML failures, Rabobank admitted that certain customer accounts were involved in not less than $368,701,259 in suspicious transactions that were either unreported or untimely reported to the Financial Crimes Enforcement Network (FinCEN), as required by the BSA.  These transactions included high-volume cash deposits and withdrawals, check transactions, electronic transfers, and wire transfers that were consistent with illegal activity such as trade-based money laundering, bulk cash smuggling, structuring, and the black market peso exchange.

According to its statement of facts, Rabobank’s branches in Imperial County, California were heavily dependent on cash sourced from Mexico – cash the bank knew was likely tied to narcotics trafficking and organized crime.  In particular, Rabobank’s Calexico, California branch, located approximately two blocks from the U.S.-Mexico border, was the highest performing branch in the Imperial Valley region due to its receipt of cash from Mexico.  Rabobank continued soliciting cash-intensive customers from Mexico, while failing to employ appropriate BSA/AML policies and procedures to address the heightened risk, until approximately May 2013, when Rabobank placed a moratorium on originating new account relationships for Mexico-based businesses entities.

Rabobank also admitted that the bank, through at least three executives, knowingly obstructed the OCC’s 2012 examination by responding to the OCC’s February 2013 initial report of examination with false and misleading information about the state of Rabobank’s BSA/AML program and by making false and misleading statements to the OCC regarding the existence of reports developed by a third-party consultant that described the deficiencies and resulting ineffectiveness of Rabobank’s BSA/AML program.  In furtherance of the scheme to defraud the OCC, Rabobank also demoted or terminated two RNA employees who provided information to the OCC regarding Rabobank’s BSA/AML deficiencies. 

The investigation was conducted by HSI, IRS-CI, and the Financial Investigations and Border Crimes Task Force (the FIBC), a multiagency Task Force based in San Diego and Imperial Counties, and funded by the Treasury Executive Office of Asset Forfeiture (TEOAF).  The investigation occurred in parallel with regulatory investigations by the OCC, Office of General Counsel, and FinCEN, Enforcement Division.  The case is being prosecuted by Trial Attorneys Kevin G. Mosley and Maria K. Vento of the Criminal Division’s Money Laundering and Asset Recovery Section, Bank Integrity Unit, and Assistant U.S. Attorneys Daniel C. Silva, Mark W. Pletcher and David J. Rawls of the Southern District of California. 

Assistant U.S. Attorneys Daniel C. Silva (619) 546-9713, Mark W. Pletcher (619) 546-9714, and David J. Rawls (619) 546-7966

NEWS RELEASE SUMMARY – May 18, 2018

SAN DIEGO – Rabobank, National Association, a California subsidiary of the Netherlands-based Coöperatieve Rabobank U.A., was sentenced today before U.S. District Judge Jeffrey T. Miller for conspiring to impair, impede, and obstruct its primary regulator, the Department of the Treasury’s Office of the Comptroller of the Currency (OCC), by concealing deficiencies in its anti-money laundering program.

Judge Miller sentenced Rabobank to pay the statutory maximum fine of $500,000 after taking account of Rabobank’s forfeiture of $368,701,259 as well as a two-year term of probation.  Today’s half million dollar criminal fine coupled with Rabobank’s forfeiture of $368,701,259 stands as the largest monetary penalty paid by a criminal defendant in the history of the Southern District of California.  

In imposing sentence, Judge Miller noted that Rabobank’s conduct essentially amounted to “stiff-arming the OCC, and completely failing in its responsibility to its customers and the nation.”

“The U.S. Attorney’s Office is intent on securing the border and preventing the laundering of narco-dollars through financial institutions like Rabobank,” said U.S. Attorney Adam L. Braverman.  “In doing so we will safeguard our communities and protect our citizens from drug traffickers and corporate criminals alike.”

“Rabobank’s branches on the Mexican border processed hundreds of millions of dollars in suspicious transactions likely tied to international narcotics trafficking, organized crime, and money laundering,” said Acting Assistant Attorney General John P. Cronan. “Instead of filing reports that would have alerted law enforcement to the suspicious activity, as required by law, the bank looked the other way and then compounded its misconduct by conspiring to cover-up its failures and deceiving its regulator.  Today’s sentence and the related forfeiture demonstrate that the Department of Justice will use all the tools at our disposal to combat drug trafficking and transnational crime—including prosecuting financial institutions that turn a blind eye to illicit proceeds moving through their customers’ accounts.” 

“It is the responsibility of Homeland Security Investigations (“HSI”) to monitor and investigate activity which exploits the global infrastructure, to include financial systems.  This complex investigation revealed, and Rabobank admits, that Rabobank was aware of the extreme risk that it was processing hundreds of millions of dollars related to transnational crime and international money laundering – activity which plagues the Southwest Border,” said Dave Shaw, Special Agent in Charge for HSI in San Diego.  “This plea and significant forfeiture sends a strong message to financial institutions that this activity will not be tolerated.”

“Rabobank’s sentencing today is a victory for all Americans and sends a strong message about the need for transparency in banking and ultimately contributes to the fight against money laundering,” stated IRS Criminal Investigation’s Special Agent in Charge, Los Angeles Field Office, R. Damon Rowe. “IRS-Criminal Investigation works diligently with our law enforcement partners to ensure funds obtained through illegal means do not find their way into our financial institutions."

Today’s sentence follows Rabobank’s February 7, 2018, guilty plea for conspiring with several former executives to defraud the United States by unlawfully impairing and impeding the OCC’s ability to regulate the bank and  obstructing its examination of Rabobank’s Bank Secrecy Act/Anti-Money Laundering (BSA/AML) compliance program.  In connection with that guilty plea, Rabobank admitted that between 2009 and 2012 it implemented BSA/AML policies and procedures that precluded and suppressed legally-mandated investigations into potentially suspicious account activity, much of which was conducted by cross-border customers and through accounts that Rabobank had previously designated “High-Risk.” 

As a result of its BSA/AML failures, Rabobank admitted that certain customer accounts were involved in not less than $368,701,259 in suspicious transactions that were either unreported or untimely reported to the Financial Crimes Enforcement Network (FinCEN), as required by the BSA.  These transactions along the southwest border included high-volume cash deposits and withdrawals, check transactions, electronic transfers, and wire transfers that were consistent with illegal activity such as trade-based money laundering, bulk cash smuggling, structuring, and the black market peso exchange. 

Rabobank’s branches in Imperial County were heavily dependent on cash sourced from Mexico – cash the bank knew was likely tied to narcotics trafficking and organized crime.  In particular, Rabobank’s Calexico, California branch, located approximately two blocks from the U.S.-Mexico border, was the highest performing branch in the Imperial Valley region due to its receipt of cash from Mexico.  Rabobank continued soliciting cash-intensive customers from Mexico, while failing to employ appropriate BSA/AML policies and procedures to address the heightened risk, until approximately May 2013, when Rabobank placed a moratorium on originating new account relationships for Mexico-based businesses entities.

Rabobank also admitted that the bank and its executives corruptly obstructed the OCC’s 2012 examination by responding to the OCC’s February 2013 initial report of examination with false and misleading information about the state of Rabobank’s BSA/AML program and by making false and misleading statements to the OCC regarding the existence of reports developed by a third-party consultant that described the deficiencies and resulting ineffectiveness of Rabobank’s BSA/AML program.  Rabobank also demoted or terminated two of its employees who provided information to the OCC. 

The case is being prosecuted by Assistant U.S. Attorneys Daniel C. Silva, Mark W. Pletcher, and David J. Rawls from the Southern District of California, and Trial Attorneys Kevin G. Mosley and Maria Vento of the Criminal Division’s Money Laundering and Asset Recovery Section.  The investigation team included HSI, IRS, and the Financial Investigations and Border Crimes Task Force (the “FIBC”), a multiagency Task Force based in San Diego and Imperial Counties, and funded by the Treasury Executive Office of Asset Forfeiture (“TEOAF”).  The investigation occurred in parallel with regulatory investigations by the OCC, Office of General Counsel, and FinCEN, Enforcement Division

DEFENDANT                                  

RABOBANK, NATIONAL ASSOCIATION

Roseville, California

SUMMARY OF CHARGES

Conspiracy to Defraud the United States and (2) To Corruptly Obstruct an Examination of a Financial Institution – Title 18, United States Code, Section 371

Maximum penalties: $500,000 fine; a mandatory special assessment of $400; and a term of probation of at least one year, but not more than five years.

AGENCIES

Homeland Security Investigations

Internal Revenue Service – Criminal Investigation

TEOAF’s Financial Investigations and Border Crimes Task Force

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

NEWS RELEASE SUMMARY – May 17, 2018

SAN DIEGO – Eleno Quinteros, Jr., the former vice president of operations for two airline mechanic staffing companies, was sentenced today to 12 months in prison for making false statements in support of legal permanent resident petitions for dozens of the companies’ mechanics.

Quinteros previously admitted falsely certifying that he had received no payments from the mechanics, when in fact he had demanded and collected hundreds of thousands of dollars of unlawful fees from approximately 85 of them. Today, U.S. District Judge Michael M. Anello sentenced Quinteros to a year and a day in custody based on his view of the “enormity of the offense.”

According to his plea agreement, Quinteros demanded and collected as much as $567,480 from his foreign labor workers, even though employers are prohibited by law from demanding payment for their fees—including attorneys’ fees—in connection with the charged applications.  Less than half of the money Quinteros collected was actually paid to immigration attorneys assisting with the applications, while Quinteros himself kept an estimated $372,715, according to court filings. 

Quinteros was vice president of two different staffing companies, as set out in his plea agreement.  The companies’ staff performed heavy maintenance on aircraft at a variety of airfields nationwide.  Quinteros was responsible for recruiting Mexican aircraft mechanics to work in the United States for the companies, and for helping recruits to obtain work visas such as TN or H-2B visas. 

According to the indictment, after assisting his recruits in obtaining work visas to come to the United States, Quinteros then agreed to help at least 85 of them pursue a legal permanent residency—in exchange for substantial (and unlawful) fees. Quinteros directed many employees to deposit money into his wife’s bank account, or provide him with blank money orders, in order to conceal the source of the unlawful funds.  Other funds were routed through a company bank account, where Quinteros falsely described them to the company bookkeeper as a “loan” from him to the company, according to court filings.   

Quinteros collected as much as ten or twenty thousand dollars from some workers, per court records.  Although Quinteros himself was well compensated by his two companies during his scheme, some of his recruits had to sell their homes and cars to finance the unlawful fees. 

On August 10, 2017, Quinteros pleaded guilty to a single count of making a false claim in support of an immigration application, in violation of Title 18, United States Code, Section 1546(a).  He admitted in his plea, however, that the underlying scheme involved more than 25 immigration documents. Quinteros has already been ordered to pay back $292,526 in illegal fees collected from 52 of the identifiable victims of his scheme. 

“Legal permanent residency in the United States is not a bargaining chip that greedy employers can sell to the highest bidder,” said U.S. Attorney Adam L. Braverman.  “This office will vigorously investigate and prosecute those who commit immigration fraud.”

“The Diplomatic Security Service is firmly committed to making sure that those who commit visa fraud face consequences for their criminal actions,” said Michael Bishop, Special Agent-in-Charge of the U.S. Department of State’s Diplomatic Security Service, Los Angeles Field Office. “The strong relationship we enjoy with our law enforcement partners on the Document Benefit Fraud Task Force and DSS’ global network of special agents working together to stop criminals from reaping illegal income by exploiting U.S. visas and foreign workers continues to be essential in the pursuit of justice.”

“As this sentence makes clear, individuals who undermine our nation’s security by compromising the integrity of our immigration laws for their own enrichment will face serious consequences,” said Joseph Macias, Special Agent in Charge for Homeland Security Investigations (HSI) Los Angeles. “Working closely with our law enforcement partners, HSI will move aggressively to hold those involved in these types of criminal schemes accountable.”

“This is a perfect example of federal agencies working together to combat those trying to defraud the government,” stated U.S. Citizenship and Immigration Services (USCIS) Los Angeles District Director, Donna Campagnolo. “USCIS FDNS will continue playing a key role in USCIS efforts to safeguard the integrity of our immigration laws, protect American workers, and safeguard the Homeland.”

DEFENDANT                                                     Case No. 17-cr-557-MMA

Eleno “Max” Quinteros, Jr.      46 years old          Chula Vista, California

CHARGES

False Statement on an Immigration Document - 18 U.S.C. § 1546(a)

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

AGENCIES

Department of State, Diplomatic Security Service

Department of Homeland Security, Homeland Security Investigations

U.S. Citizenship and Immigration Services

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

NEWS RELEASE SUMMARY – May 11, 2018

SAN DIEGO – Joseph Daniel Saucedo of Vista was sentenced in federal court today to 235 months in custody and 20 years of supervised release for attempting to manipulate two children, ages 11 and 16, into sending sexually explicit photographs of themselves, and then threatening to expose them if they refused to continue.

According to the plea agreement, Saucedo posed as a teenage girl, “Amy Jennings,” and began communicating on-line with an 11-year-old Canadian boy. At first the two had normal conversations about everyday life. But then Saucedo, pretending to be “Amy,” sent naked pictures of young girls and asked the boy to communicate with her “friend,” Saucedo, in return. When the boy refused, “Amy” posted a photograph of his house, told the boy she knew where he lived, and threatened to shame him into communicating with Saucedo.

The boy ultimately relented and texted Saucedo, who then communicated with the boy using FaceTime and displayed his naked front torso. The boy hung up on Saucedo but the calls and threats continued until, finally, on January 25, 2016, the boy received a message from “Amy,” which included a video of a young boy masturbating. “Amy” threatened to leak the video and claim it was the Canadian boy if the boy did not send naked pictures of himself to Saucedo. 

Additional investigation revealed that Saucedo had been in communication with other young children, successfully soliciting sexually graphic images from them.  For example, in August 2015, Saucedo struck up a conversation with a 16-year-old girl in Florida through Instagram. This time, Saucedo pretended to be a modeling agent looking for “bikini and nude models” adding “obviously the pay is great.”  When the Florida girl told Saucedo that she was only 16 and would have to check with her parents, he volunteered that they could just “make a portfolio” at no cost to her, and “then we can talk to your parents.”  She demurred again, telling Saucedo that she had “never been comfortable in my skin.”  He promised to “help with that hun if you want we can FaceTime so nothing is saved.”

She continued to refuse his overtures until Saucedo, under the guise of “Amy Jennings,” threatened to blackmail the girl.  The girl turned to Saucedo for help with “Amy.”  Although he initially claimed no knowledge of Amy Jennings and insisted his modeling business was legitimate, he quickly agreed to help the girl, for a price: nude pictures of herself.  He even asked her to “[w]rite my name on a paper or hand so I know it’s a new one.”  She acquiesced and sent him pictures of her breasts with “Joe” written across her chest.

Saucedo demanded that the girl continue sending him naked photographs, or “Amy” would post compromising pictures of the girl.  The girl volunteered that she was “looking into Kik’s legal system” to handle the threatening “Amy” posts.  Within seconds, Saucedo responded, “Na I’ll pay her I don’t want you to get in trouble.”  Saucedo no doubt feared that alerting Kik to “Amy Jennings” could have compromised his illegal activities.  Saucedo told the girl that he had paid “Amy Jennings” $2,000.  As a thank you, the girl agreed to a sexually explicit FaceTime chat with Saucedo.  She also sent additional photographs of herself naked with “Joe” written on her breasts and above her vagina, again at his request.

Saucedo continued to hound the girl for almost a year, from August 2015 to June 2016, requesting more naked photographs.  He even sent her a photo of stacks of money to elicit more naked photographs.  She sent him one more photograph in October 2015, but then stopped responding.   

Through search warrants for Saucedo’s cell phones, investigators identified an additional eight minor victims whom Saucedo harassed and manipulated.  His youngest victim was 13 at the time of the offense.  This victim told Saucedo her age and he nonetheless continued to solicit nude photos from her, including pressuring her to take naked photos of herself while she was at school.  Saucedo also directed a 14 year-old victim to sodomize herself and to penetrate herself with a hair brush and threatened her when she protested, including ignoring her warning that his requests made her contemplate suicide.  Saucedo’s indifference to his victims’ apparent suffering included disregarding multiple victims’ warnings that his contacts and demands were triggering suicidal thoughts.

At the sentencing hearing, the government acknowledged and thanked the family of the 11 year-old victim.  Their vigilance and willingness to report Saucedo’s conduct, coupled with the investigative follow-up efforts of the Calgary Policy Service and the Royal Canadian Mounted Police, led Canadian authorities to refer the matter to San Diego’s Electronic Crimes Working Group, which ultimately identified and arrested Saucedo.  Only following Saucedo’s arrest did law enforcement learn of his additional nine victims.  Victims, family members, and friends are encouraged to report similar threats and contacts to law enforcement now and in the future.

“This case highlights the importance of strong international partnerships to target these heinous crimes,” said U.S. Attorney Adam L. Braverman. “Thank you to our Canadian colleagues, and most especially to the brave victims everywhere who step forward to report abusive conduct. Their courage is a critical part of detecting and stopping similar abuse now and in the future.”  

“Saucedo's sentencing is a another great example of our collaboration with our law enforcement partners and our commitment to keeping our children safe,” said David Shaw, Special Agent in Charge for HSI San Diego. “Dangerous child predators should not have the privilege to be a part of our communities without being held accountable and going through the criminal justice process.”

DEFENDANT                                   Case Number: 17-CR-00095-JLS

Joseph Daniel Saucedo                       Age: 26                       Vista, CA

SUMMARY OF CHARGES

Counts One and Two

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

Minimum Penalty: 15 years

Maximum Penalty: 40 years

AGENCY

United States Homeland Security Investigations

United States Secret Service

Calgary Police Service

Royal Canadian Mounted Police

Kelly Thornton (619) 546-9726    

NEWS RELEASE SUMMARY – May 11, 2018

SAN DIEGO – Two Mexican nationals – one armed with a makeshift plastic shiv and another with a 4X4 piece of lumber - were arrested and charged in unrelated assaults on U.S. Border Patrol agents along the border this week.

According to a complaint, in the first incident, on May 9, 2018 at approximately 10:15 a.m., Pedro Damien Gonzalez Iglesias is accused of assaulting Border Patrol Agents Edmund Parra and Ramiro Lizarraga after he illegally entered the United States.  Gonzalez Iglesias walked up to the agents, who were working near the San Ysidro port of entry, and tried slashing them with an object that looked like a piece of plastic shaped like a knife.  The agents tried using verbal commands numerous times to get the defendant to drop his weapon. The subject got to within arm’s length of the agents before Agent Lizarraga was able to successfully deploy his Oleoresin Capsicum (OC) Spray.  The agents took the subject into custody. No injuries were reported.

According to details in another complaint, the second incident occurred on May 10, 2018, at approximately 10:05 a.m. Defendant Carlos Miranda-Alonso is accused of assaulting Border Patrol Agent Raymond Gray during an attempted arrest. The defendant threw punches and elbows and ran away when Agent Gray attempted to place the subject in handcuffs. Miranda-Alonso picked up a 4x4 piece of lumber approximately 3½ feet in length and swung it at Agent Gray. Agent Gray was able to step out of range to avoid being hit. Miranda-Alonso attempted to flee westbound through the Tijuana Estuary. At 10:22 a.m. the defendant was apprehended west of the Tijuana Estuary Visitor center. No injuries reported.

“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.”

DEFENDANT                                               Case Number 18mj2339                                          

Pedro Damien Gonzalez Iglesias

SUMMARY OF CHARGES

Assault on a Federal Officer, in violation of Title 18, U.S.C., Sec. 1 ll(a)(l )A

Maximum penalty: Six months in prison and a $5,000 fine

DEFENDANT                                               Case Number 18mj2380__  

Carlos Miranda-Alonso

SUMMARY OF CHARGES

Assault on a Federal Officer, in violation of Title 18, U.S.C., Sec. 1 ll(a)(l )A

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

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. Attorney Colin McDonald (619) 546-9144

SAN DIEGO – Jorge Garcia-Osornio was sentenced in federal court today to 30 months in prison for blasting through a Border Patrol checkpoint in Pine Valley, severely injuring a checkpoint inspection agent, and taking Border Patrol on a high-speed chase reaching speeds of at least 100 miles per hour.

Garcia, who was illegally present in the U.S. and had two illegal immigrants hiding on the floor of his vehicle, approached the checkpoint – about 45 miles east of downtown San Diego - at approximately 10:26 a.m. on November 14, 2017. As he neared the line of cars waiting for inspection, he made an illegal U-turn and started driving the wrong way on the freeway.

https://youtu.be/bGiBdp3ieV4

https://youtu.be/KsR_R44bpsQ

A Border Patrol agent yelled, “Turn around! Turn around!” Another agent activated his emergency lights and siren and began following the defendant. Garcia then made another U-turn on the freeway and headed back toward the checkpoint. The agent tried to stop Garcia’s vehicle by positioning the agency vehicle in the center of both freeway lanes, but Garcia squeezed past by driving onto the shoulder of the freeway.

He then sped toward the checkpoint. A number of cars were in the checkpoint queue. Garcia evaded them by driving into a coned-off freeway lane. He then accelerated to – and through – the checkpoint. In the process, he barely missed crashing into a parked agency car; barely missed crashing into a parked civilian car; and barely missed running over Border Patrol Agent M. Medina, the primary inspection agent.

But Garcia did not miss a steel-framed stop sign sitting in the middle of the freeway lanes; he barreled through it, causing a collision best described as an “explosion.” Debris from the collision struck Agent Medina, who likened the blow to being “hit with a baseball bat.” His injuries were similarly severe: Vomiting, throbbing headache, blurry vision, a gash on his face, shaking uncontrollably, and loud ringing in his ears, among other things. Agent Medina was taken to the hospital in an ambulance and has not returned to work since.

After crashing through the checkpoint, Garcia led Border Patrol on a high-speed chase, reaching speeds of at least 100 mph. After about 3.5 miles, Garcia exited the freeway, ran a stop sign and crashed into a hillside. One of the illegal immigrants on the floor of Garcia’s car said he “feared for his life.”

Garcia then ran away and agents found him hiding in a nearby carport with the crashed car’s key fob in his pocket.

As part of his plea, Garcia admitted driving the wrong way on the freeway, reaching at least 100 mph when fleeing from the checkpoint, using a dangerous weapon in the commission of the offense, and seriously injuring Agent Medina, among other things.

Garcia expected to earn between $1,400 and $2,000 for transporting the two illegal immigrants.

“This defendant had no regard for the safety of his passengers, other drivers on the freeway or agents at the checkpoint,” said U.S. Attorney Adam Braverman. “It’s a miracle no one died in this incident. Smugglers operate in a world where immigrants are just dollar signs, not people.”

“In committing his criminal act, Garcia not only placed the lives of those he smuggled in grave danger, but seriously injured a Border Patrol agent in the process,” Chief Patrol Agent Rodney S. Scott. “I would like to express my sincere appreciation to the United States Attorney’s office for their efforts in prosecuting this case.  Let this sentencing serve as a reminder that there will be severe consequences for those that wish to do our country harm.”

DEFENDANT                                               Case Number 17cr4272-JM                                    

Jorge Garcia-Osornio                                      Age: 28           Michoacán, Mexico

SUMMARY OF CHARGES

Transporting Certain Aliens and Aiding and Abetting – Title 18, U.S.C., Sections 1324(a)(1)(A)(ii), (v)(II), and (a)(1)(B)(i)

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

AGENCY

U.S. Border Patrol

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

NEWS RELEASE SUMMARY – May 7, 2018

SAN DIEGO – Phillip Junior Web, a high school senior at Castle Park High School, was charged in federal court today with conspiracy to distribute controlled substances and bringing in unlawful aliens, including a Mexican national and Chinese national, for financial gain.  He was arraigned this afternoon before U.S. Magistrate Judge Bernard G. Skomal.

According to the court documents, the defendant was a high school senior who recruited other high school students to smuggle methamphetamine and fentanyl into the United States on multiple occasions, including on  July 1, 2017 (juvenile attempted to smuggle methamphetamine), September 19, 2017 (two juveniles attempted to smuggle methamphetamine), September 27, 2017 (juvenile attempted to smuggle methamphetamine), and October 23, 2017 (juvenile attempted to smuggle fentanyl).  On each of these occasions, the juveniles had drugs strapped on their bodies as they attempted to enter the United States at the San Ysidro or Otay Mesa Ports of Entry.

Last Friday, defendant Webb was caught attempting to bring in a Chinese national and Mexican national into the United States in the trunk of his vehicle. The defendant’s next court appearance is on May 10, 2018 for a detention hearing and May 21, 2018 for a preliminary examination before Judge Skomal. 

In an unrelated criminal complaint, defendant Alejandro Barba was charged with conspiracy to distribute methamphetamine. According to the complaint, agents saw a juvenile briefly enter Barba’s parked vehicle at the San Ysidro High School parking lot, remove items from his backpack, and then exit Barba’s vehicle.  Barba, the sole occupant and driver, was stopped and agents found five kilograms of methamphetamine in his back seat. According to the complaint, the unnamed juvenile had smuggled the methamphetamine through the border earlier that day.  Barba will appear for his initial appearance later this week.

“We are seeing a very troubling trend and we want to warn parents and high schoolers,” said U.S. Attorney Adam L. Braverman. “Our youth are being recruited by drug cartels to smuggle dangerous drugs across the border. We are going after the recruiters who exploit these kids, but the kids also need to know that they are gambling with their lives when they do this. Don’t throw away your future.”

DEFENDANT                                    Case No. 18MJ2229

Phillip Junior Webb                            Age: 18           Tijuana, Mexico

CHARGES

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

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

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

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

DEFENDANT                                    Case No. 18MJ2147

Alejandro Barba                                 Age: 27           San Diego, California

CHARGES

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

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

AGENCIES

Homeland Security Investigations

Drug Enforcement Administration

Customs & Border Protection

San Diego County Sheriff’s Department

*The charges and allegations contained in a complaint are merely accusations, and the defendants are no considered innocent unless and until proven guilty.

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

NEWS RELEASE SUMMARY – May 2, 2018

SAN DIEGO – The United States unsealed an indictment today that charges U. S. Navy service members Christopher Toups, Jason Toups, Kelene McGrath, Ernest Thompson, and Richard Cote with fraud, false claims and conspiracy to defraud the United States.  The charges arise from a scheme wherein the defendants filed fraudulent claims to obtain unearned benefits from the Traumatic Servicemembers Group Life Insurance Program (“TSGLI”).  

According to the indictment, the TSGLI program is an insurance program that compensates service members who suffer serious and debilitating injuries while on active duty.  The program is funded by fees paid directly by individual service members and the Department.  The five defendants, four former and one active members of the United States Navy, each fraudulently claimed that they were entitled to benefits of $100,000 for serious injuries they claimed to have suffered—but which in fact never occurred.  To support their applications, each defendant submitted fabricated applications that included forged signatures and altered hospital records.  Four of the five defendants received the $100,000 payouts before the government uncovered the scheme and froze the final payment. 

“The TSGLI program is designed to protect hundreds of thousands of honest and hard-working service members.  This indictment sends a message to those who seek to defraud the government out of the dollars meant to care for our seriously injured military members that they will be held accountable,” said U.S. Attorney Adam L. Braverman.

Defendants Jason Toups, Kelene McGrath, Ernest Thompson and Richard Cote were arraigned on the indictment before U.S. Magistrate Judge Ruben B. Brooks.  Christopher Toups is expected to make his initial appearance before a federal judge in Georgia.  Their next court appearance is scheduled for June 1 at 1:30 p.m. before Judge U.S. District Judge Janis L. Sammartino.

DEFENDANTS                                            Case Number 18cr1674-JLS                                               

Richard Cote                                                   Age: 43                                   Oceanside, CA

Kelene McGrath                                             Age: 41                                   Jacksonville, FL

Christopher Toups                                          Age: 40                                   Woodstock, GA

Jason Toups                                                    Age: 35                                   Gulfport, MS

Earnest Thompson                                          Age: 44                                   Murrieta, CA

SUMMARY OF CHARGES

Count 1:

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

Maximum penalty: 20 years’ imprisonment and fine of higher of $250,000 or double loss amount

Counts 2-7:

Wire Fraud - Title 18, U.S.C § 1343

Maximum penalty: 20 years’ imprisonment and fine of higher of $250,000 or double loss amount

Counts 8-12

Making a Fraudulent and False Claim - Title 18, U.S.C § 287

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

AGENCIES

Naval Criminal Investigative Service

Federal Bureau of Investigation 

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

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

NEWS RELEASE SUMMARY – May 1, 2018

SAN DIEGO –  Today, in federal court, San Diego resident Sky Justin Gornik, age 39, pleaded guilty to  participating in a conspiracy to deliver, distribute and dispense controlled substances through the internet, in violation of Title 21, United States Code, Sections 841(h), 841(b)(1)(A), and 846.  Gornik also admitted that he engaged in a conspiracy to launder drug proceeds using digital currencies, in violation of Title 21, United States Code, Sections 1956(a)(1)(A)(i) and 1956(h).   He agreed to forfeit millions of dollars in digital or crypto currencies that resulted from illegal drug sales.  The guilty plea triggered a 10-year minimum mandatory sentence.

As part of his guilty plea, Gornik admitted that from 2014 to June 7, 2017 (the date of his arrest by federal authorities), he bought and sold controlled substances on the “Dark Web” or “Darknet.”  Employing anonymous screen names, Gornik used multiple Darknet marketplaces (including Alpha Bay, Trade Route, Abraxas, Evolution, Outlaw Market, and Dream Market) to buy and sell controlled substances.  Specifically, Gornik admitted that he purchased and sold fentanyl and purchased the especially deadly opiate carfentanil, using a variety of digital currencies. Gornik also purchased and sold multiple other controlled substances, including thousands of vials of ketamine, oxycodone pills, Dimethyltryptamine (DMT), Psilocybin and Psilocin, Amphetamine, Buprenorphine, Methamphetamine, and Naloxone.  To conceal his criminal activity, Gornik would then blend and transfer the various digital currencies to other virtual wallets and accounts. 

According to court documents, agents seized 1.7 grams of carfentanil inside Gornik’s residence on June 7, 2017. Carfentanil is a synthetic opioid approximately 10,000 more potent than morphine and 100 times more potent than fentanyl. The 1.722 grams of carfentanil seized in Gornik’s residence could equate to over 86,000 fatal dosages.  Gornik also possessed sheets of fentanyl gelatin tablets (approximately 100 tabs per sheet), which agents seized during the search.  According to court documents, Gornik obtained 600-1200 fentanyl gel tablets each week for approximately two years from a Darknet vendor, now identified as Steven Wallace George.  George, the Oklahoma Darknet vendor, manufactured the pure fentanyl that he obtained from China into gelatin tablets. George pled guilty in federal court to possession with intent to distribute methamphetamine and distribution of fentanyl and is currently awaiting sentencing (Case No. 17-090-R Western District of Oklahoma).  

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

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

“A speck of carfentanil the size of a grain of sand can kill you, making this substance extremely deadly. Here law enforcement agents took 86,000 potentially fatal carfentanil doses out of Dark Web circulation, along with many other dangerous drugs, including fentanyl.  We will vigorously prosecute dealers and Dark Web vendors who cavalierly endanger our community’s residents and first responders by selling deadly opioids,” stated U.S. Attorney Adam Braverman. “And Dark Web vendors beware: your cryptocurrencies are not safe from seizure.”

“The Postal Inspection Service is dedicated to protecting the American public and has made battling synthetic opioids in the mail one of its highest priorities.  By working closely with other law enforcement partners in operations like this one, we can prevent dangerous drugs from reaching the communities we serve,” said Nichole Cooper, Inspector in Charge of the Los Angeles Division (to include San Diego).

“HSI is committed to working with our law enforcement partners to combat the trafficking of dangerous fentanyl and other deadly opioids on the Dark Web,” said Dave Shaw, Special Agent in Charge for HSI San Diego.  “I commend the federal agents who worked tirelessly to uncover Gornik’s illicit financial scheme and transnational drug trafficking activities.”

Gornik pled guilty today before Magistrate Judge Bernard G. Skomal, and will be sentenced by District Court Judge Anthony Battalgia on July 16, 2018 at 9 a.m.

U.S. Attorney Braverman would like to specially thank the United States Postal Inspection Service, Homeland Security Investigations, the Internal Revenue Service, and DOJ Money Laundering & Asset Recovery Section for their efforts.

DEFENDANT                                               Criminal Case No.17CR2796AJB

SKY JUSTIN GORNIK                                   Age: 39                     San Diego, California

SUMMARY OF CHARGES

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

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

Count 2 (Conspiracy To Launder Money)

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

Criminal Forfeiture As To Count 1

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

Criminal Forfeiture As To Count 2

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

AGENCIES

United States Postal Inspection Service, San Diego

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

United States Postal Inspection Service, Oklahoma

Homeland Security Investigations

Internal Revenue Service, Criminal Investigations

San Diego Police Department

San Diego District Attorney’s Office

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

Assistant U.S. Attorney Nicholas Pilchak (619) 546-9709 or Assistant U.S. Attorney Michael A. Deshong (619) 546-9290

NEWS RELEASE SUMMARY – April 27, 2018

SAN DIEGO – Supervisory Border Patrol Agent David Wayne Skinner was convicted Thursday of making false statements to a federal grand jury in connection with an investigation of a benefits fraud scheme. 

At trial, the jury heard evidence that Skinner’s accomplices, former U.S. Marine Corps reservist Major Jason Wild and former Lieutenant Colonel Michael Strom, defrauded the Marine Corps out of $205,628 between 2006 and 2010, according to evidence admitted at trial.  Skinner assisted with the scheme by signing a fake lease agreement used by Strom to make the claims, and by trying to call the military authorities responsible for paying the claim. 

Witnesses explained how Strom filed two years’ worth of false claims with the Marine Corps, pretending to rent Wild’s home from Skinner.  All of Strom’s claims listed Skinner as the landlord for Wild’s property, even though trial evidence established that Skinner never received any of the $98,716 of rent that Strom claimed to have paid him.  Instead, Strom paid Skinner $1,000 during the duration of the scheme. 

Strom pleaded guilty to wire fraud conspiracy and making a false claim in 2016; Wild was convicted in November 2016 after a separate trial.  Both men were sentenced to prison terms, and the pair has repaid the entire $205,628 back to the Marine Corps. 

Agents first interviewed Skinner about the fake lease arrangement in August 2013. Shown a copy of the lease agreement, Skinner denied ever seeing it.  He again denied authorizing the lease in an interview with agents and a prosecutor in April 2015.  Finally, Skinner testified in the grand jury in September 2015 and once again denied ever seeing the fake lease agreement before agents first showed it to him in 2013. When shown a copy of the agreement with his signature on it in the grand jury, Skinner admitted the signature was his but could not explain how it had arrived on a document he had never seen. Skinner also denied ever receiving any money from Strom, even though the two had spoken by telephone the day Strom wrote Skinner the check for $1,000.  

After a three-day jury trial, the jury found that Skinner knowingly lied when issuing his denials about the lease agreement to the grand jury.  He was acquitted of a separate count charging him with falsely denying receiving money from Strom. 

Skinner’s sentencing hearing is set for August 6, 2018 at 9:00 a.m. before Judge Anthony J. Battaglia.

“America’s entire justice system depends upon witnesses giving honest testimony under oath,” said U.S. Attorney Adam L. Braverman.  “This jury verdict is a powerful reminder that any person who takes the oath and knowingly lies will be held accountable—whether they are a civilian or a career law enforcement officer.”  U.S. Attorney Braverman also commended the outcome as the result of the years-long close coordination between the Defense Criminal Investigative Service (DCIS), the Naval Criminal Investigative Service (NCIS), the Department of Homeland Security, Office of the Inspector General (DHS OIG), and the Naval Audit Service.

“This conviction should send a clear message that DHS OIG will aggressively investigate DHS employees who brazenly defy federal laws and betray the public trust,” declared DHS OIG Special Agent in Charge Amanda Thandi. 

“Today’s guilty verdict in the trial of current U.S. Border Patrol Supervisory Agent and former U.S. Marine Corpsman David W. Skinner for perjuring himself before a federal grand jury sends a clear message that dishonesty in a federal criminal investigation will not be tolerated,” said Chris D. Hendrickson, Special Agent in Charge of the DCIS Western Field Office.  “The conduct of Agent Skinner is particularly reprehensible given that he is serving as a federal law enforcement official.  Those who serve in the Government have an obligation to uphold the public's trust or pay the consequences. The efforts of DCIS, the Naval Criminal Investigative Service, the Naval Audit Service, Department of Homeland Security, and the Department of Justice resulted in a just verdict.”

“NCIS will continue to work with our law enforcement partners to hold responsible those who put personal gain above their responsibility to the nation,” said Belinda Saunders, Special Agent in Charge of the NCIS Southwest Field Office.  “A law enforcement representative who so readily casts aside the public trust placed in them and lies under oath needs to be held accountable for his actions.” 

DEFENDANT—Case Number: 17-cr-1464-AJB                          Next Court Date

David Wayne Skinner                                                                         Sentencing August 6, 2018

SUMMARY OF CHARGES

Count 2: False Declaration to Grand Jury, in violation of Title 18, United States Code, Section 1623

Maximum Penalties: 5 years in prison, 3 years supervised release, and a $250,000 fine

AGENCIES

Department of Homeland Security, Office of Inspector General

Defense Criminal Investigative Service

Naval Criminal Investigative Service

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

NEWS RELEASE SUMMARY – April 27, 2018

SAN DIEGO – Tijuana resident Alejandro Hernandez was sentenced in federal court today to 30 months in custody for conspiring to smuggle and sell counterfeit and unapproved drugs. The defendant was also ordered to pay restitution of $9,750 to Eli Lilly and Co., for losses related to his sale of counterfeit products.

During a long-term undercover investigation, agents purchased counterfeit or unapproved pharmaceuticals from Hernandez on six separate occasions – oftentimes in a Chula Vista parking lot, paying for them with cash.  The drugs were all labeled in the Spanish language, and included products such as Buscapina, Prodolina and Neo-Melubrina, which are not approved by the Food and Drug Administration for use in the United States. Hernandez also provided counterfeit versions of several drugs, including Viagra and Cialis. 

Hernandez told undercover operatives that his boss in Mexico had other employees, including a driver who would walk or drive across the border with the pharmaceuticals.  Surveillance indicated that Hernandez stored the illegal pharmaceuticals at various self-storage units near the border.  Agents arrested Hernandez earlier this year as he made a delivery of pharmaceuticals, and executed a search warrant at one of his self-storage units. The search yielded over $250,000 of unapproved and counterfeit pharmaceuticals in the storage unit, as well as ledgers documenting years of sales. 

“This office is committed to protecting the health and safety of the citizens in our district by keeping counterfeit and unapproved prescription drugs off the market, and prosecuting individuals who seek to profit from the illegal distribution of such drugs,” said U.S. Attorney Adam L. Braverman.

“U.S. consumers rely on the FDA’s scientific review to ensure that their drugs are safe and effective,” said FDA Office of Criminal Investigations Special Agent in Charge Lisa Malinowski. “The mission that drives our investigations is protecting patients from unsafe drugs.  As there are no assurances that unapproved products from foreign sources are safe or effective, we must protect consumers from these foreign unapproved medicines. The FDA will continue to pursue and bring to justice those who violate the Federal Food Drug and Cosmetic Act by introducing unapproved and misbranded drugs into interstate commerce.‎”

“Homeland Security Investigations agents, our law enforcement partners, and prosecutors worked diligently to investigate Hernandez's criminal activity,” said David Shaw, Special Agent in Charge of HSI in San Diego. “Today’s sentencing shows our commitment to bring to justice those who endanger the public by illegally importing and distributing counterfeit pharmaceuticals.”

DEFENDANT                                               Criminal Case No. 18cr0380-DMS

Alejandro Hernandez                                      Age: 54                                   Tijuana, Mexico

SUMMARY OF CHARGES

Count 1

Conspiracy, 18 U.S.C. § 371

Maximum penalty: 5 years in custody, fine of $250,000 or twice the gross gain or loss caused by the offense, restitution, three years of supervised release

AGENCIES

Homeland Security Investigations

Food and Drug Administration, Office of Criminal Investigations

Assistant U. S. Attorneys David Leshner (619) 546-7921  and Matthew Brehm  (619) 546-8983

NEWS RELEASE SUMMARY – June 22, 2017

SAN DIEGO – U.S. Border Patrol Agent Noe Lopez was sentenced in federal court today to 70 months in prison for attempting to smuggle methamphetamine and cocaine while on duty in exchange for cash.

Lopez pleaded guilty in June of 2017 to attempted distribution of methamphetamine and cocaine. In November 2016, Lopez agreed to a plan with a confidential source whereby he would retrieve backpacks containing controlled substances from the north side of the United States/Mexico border fence while on duty with the Border Patrol. Lopez admitted that he agreed to transport the backpacks in his Border Patrol vehicle and deliver them to the source in exchange for thousands of dollars.

“This is a fitting sentence for a law enforcement agent who, instead of policing drug traffickers, joined them,” said U.S. Attorney Adam L. Braverman. “Noe Lopez will pay a high price for betraying his fellow agents and his badge.”

FBI Special Agent in Charge John Brown said, “This case illustrates the power of our government agencies working together by bringing our resources, strengths, and intelligence to bear in order to root out corruption, wherever it may be.  Today, this sentencing shows the results of one team working together to maintain the safety and security of our nation, particularly at our international border.”

“Any instance of criminal activity drives the motivation of all law enforcement officers to pursue justice,” said San Diego Sector Chief Patrol Agent Rodney S. Scott. “This is especially true when one of our own commits the criminal act.  The arrest and subsequent guilty plea by former Border Patrol agent Noe Lopez tarnished the badge that our agents wear proudly and professionally represent every day.  Noe Lopez violated the trust of the public and the law enforcement community he betrayed.  Noe Lopez is the anomaly; he does not represent the professionalism, honor and distinction that Border Patrol agents exhibit everyday safeguarding our nation.”

 On November 30, 2016, Lopez purchased three backpacks that would be used to transport the controlled substances and gave the backpacks to the source.  They agreed that on December 6, 2016, Lopez would retrieve a backpack containing six pounds of methamphetamine while on duty with the Border Patrol and deliver the backpack to the source. Lopez told the source where to place the backpack containing methamphetamine on the north side of the United States/Mexico border. 

According to Lopez’s admissions in his plea agreement, on December 6, 2016, undercover DEA agents placed a backpack (one of the three backpacks purchased by Lopez) containing six pounds of a substance resembling methamphetamine near the prearranged location.  Lopez drove to the location in his Border Patrol vehicle and retrieved the backpack.  He returned to the Border Patrol Station and placed the backpack in his personal vehicle.  At the conclusion of his Border Patrol work shift, Lopez met the source at a parking lot in Chula Vista, where Lopez gave the source the backpack containing what Lopez believed to be six pounds of methamphetamine. 

On December 7, 2016, the source paid Lopez $3,000 for retrieving and delivering the purported methamphetamine. In a recorded conversation, Lopez discussed the area known as “Goat Canyon” where he was to be assigned the following day. Lopez said it was one of the areas he preferred to have the drugs dropped. “Honestly, the thing is that there aren’t—there aren’t any cameras. Nothing, nothing, nothing.”

This scenario was repeated on December 8, 2016, except the backpack purportedly contained seven kilograms of cocaine. Toward the end of Lopez’s shift, agents dropped seven kilograms of simulated cocaine in another backpack previously provided by Lopez.  Lopez retrieved the backpack and placed it in his Border Patrol vehicle.  At the end of his shift, Lopez transferred the backpack to his personal vehicle. Lopez delivered the backpack to the source. Agents later confirmed that the backpack contained the simulated cocaine that agents had dropped at the pre-determined location.

The following day, December 9, the source gave Lopez $7,000.  In the recorded meeting, Lopez went over the drop location.  Lopez made clear that the source should trust him to carry out the smuggling venture because: “If I’m saying it, it’s because I’m taking the risk.  If I’m saying, ‘cross now,’ that means that I am taking the responsibility for them to cross.” In response to the source’s concern that his courier would get caught if he jumped over the fence and dropped the drug-laden backpack in the requested location, Lopez responded, “No, there is nobody that will report them. Me. That’s why I’m supposed to be there. There’s nobody—there are no cameras, there are no sensors-there’s nothing. There’s nothing. That’s why I’m telling you that this—this area is perfect.”

On December 14, 2016, Lopez again switched duty areas with another agent so that he could be in a favorable area for a third smuggling event.  Lopez then contacted the CS and indicated that he was scheduled to work in a favorable location for the drug drop.  The drop did not occur, and Lopez was arrested at his Border Patrol Station.

Anyone with information about corruption is asked to contact the FBI at 1-877-NO-BRIBE (662-7423), or submit a tip online at TIPS.FBI.GOV.

DEFENDANT                                   Case Number 17cr0086                                           

Noe Lopez                                          Age: 37                                   Chula Vista, CA

SUMMARY OF CHARGES

Attempted Distribution of Methamphetamine and Cocaine, in violation of 21 U.S.C. 841 (a) (1) and 846

Maximum penalty: Life in prison and $10 million fine

AGENCIES

Federal Bureau of Investigation

U.S. Drug Enforcement Agency

U.S. Border Patrol

Assistant U.S. Attorney Michelle Pettit (619) 546-7972

NEWS RELEASE SUMMARY – April 24, 2018

SAN DIEGO – Gunner's Mate Second Class Aaron Booker was arraigned in federal court today on charges that he possessed 20 stolen concussion hand grenades that went missing from San Diego-based guided-missile destroyer USS Pinckney.

Booker, who had been stationed in San Diego when the alleged crime took place, was taken into custody this morning at his new post in Great Lakes, Illinois by the Naval Criminal Investigative Service. The United States is seeking removal of Booker to face charges in San Diego.

According to a complaint, USS Pinckney personnel discovered 20 grenades missing from their storage crates during a routine inventory of explosives on February 8, 2017. Designated personnel are required to conduct regular temperature checks in the locker that houses the crates, but no personnel should have accessed the crates themselves outside of an inventory. Booker was a member of the ship’s Weapons Department, and between November 2016 and January 2017, he conducted temperature checks for that locker on five separate occasions. The United States alleges that Booker removed these grenades from their storage crate and transported them off the ship. He officially detached from the ship on February 14, 2017, at which point he left San Diego and drove to his new duty station in Great Lakes, Illinois.

On April 20, 2017, an off-duty law enforcement officer discovered a black backpack on the side of the road leaning against a guardrail on Interstate 15 in northwest Arizona. The bag was a standard military issued backpack with “GM2 BOOKER” handwritten on a tag inside the bag, and it contained 18 of the grenades that were missing from USS Pinckney. Law enforcement is searching for the two missing grenades.

According to the complaint, Booker acknowledged to investigators that he drove that route before reporting to his new duty station in early March. However, he provided conflicting statements related to if and how he had seen or touched the grenades.

“A backpack full of grenades on the side of the road is obviously extremely dangerous and could have had resulted in injuries or death,” said U.S. Attorney Adam L. Braverman said. “The theft of explosives is a very serious offense, particularly if it is carried out by an insider with access to military weapons and secrets.”

“Navy sailors are trusted with maintaining dangerous and sensitive equipment onboard naval vessels to ensure the Navy is always prepared to protect and defend the interests of the United States,” said Belinda Saunders, Special Agent in Charge of the NCIS Southwest Field Office. “It is a violation of that trust for any service member to steal from the United States Navy for any reason. This case is particularly troubling given the explosive nature of what was stolen, which could have seriously injured others.”

Booker is scheduled to appear for a detention hearing in the Northern District of Illinois before he is transferred to San Diego.

DEFENDANT                                               Case No. 18MJ1873

Aaron Booker                                     Age: 31           Waukegan, Illinois

SUMMARY OF CHARGE

Possession of Stolen Explosives, in violation of Title 18, United States Code, Sections 842(h) and 844(a)(1)

Maximum penalties: 10 years in prison and a $250,000 fine

INVESTIGATING AGENCY

Naval Criminal Investigative Service

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

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

NEWS RELEASE SUMMARY – April 19, 2018

SAN DIEGO – David Weaks, a fifth grade teacher at Rosa Parks Elementary School in the San Diego Unified School District, was arrested and charged yesterday with distributing pornographic images of young girls, including a toddler.

Weaks made his initial appearance in federal court yesterday afternoon before U.S. Magistrate Judge Andrew G. Schopler. The government asked that Weaks be held without bond on grounds that he is a danger to the community and a flight risk. Judge Schopler scheduled a detention hearing for Tuesday April 24 at 2 p.m. to consider the matter.

Beginning in late March, Homeland Security Investigations agents were conducting an investigation of individuals suspected of making files of child pornography available for sharing on the Internet through the use of a peer-to-peer file sharing program. On April 4, 2018, agents connected to a computer with an internet protocol address associated with Weaks’ residence in San Diego. Agents were able to download two videos directly from the IP address, both of which showed young minor females engaging in sex acts with adult males.

Homeland Security agents, along with other law enforcement officers associated with the San Diego Internet Crimes Against Children Task Force, searched Weaks’ home yesterday morning pursuant to a federal warrant and seized multiple computer and other digital items which were found to contain child pornography.

The Internet Crimes Against Children Task Force Program 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. Homeland Security Investigations, is a member of the Task Force.

DEFENDANTS                                            Case Number 18mj1862                              

David Gordon Weaks                                     Age: 59                                   San Diego, CA

SUMMARY OF CHARGES

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

Maximum penalty: 20 years in prison, with a mandatory minimum of five years in prison; $250,000 fine

AGENCY

Homeland Security Investigations

Internet Crimes Against Children Task Force

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

Biotheranostics Inc. has agreed to pay $2 million to resolve allegations that it submitted and caused the submission of false claims to Medicare for Breast Cancer Index (BCI) tests that were not reasonable and necessary for the diagnosis and treatment of breast cancer, the Department of Justice announced today.  Biotheranostics is a diagnostic laboratory testing company located in San Diego, California. 

“Health care providers are responsible for ensuring that the services they provide to Medicare beneficiaries are both reasonable and necessary,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.  “Laboratories that knowingly submit claims for non-reimbursable services will be held accountable.”

By statute, Medicare can only pay for laboratory tests that are reasonable and necessary for the diagnosis or treatment of a patient’s illness or injury.  The United States alleged that Biotheranostics knowingly promoted and performed the BCI test for breast cancer patients who had not been in remission for five years and who had not been taking tamoxifen, and thus for whom the test was not reasonable and necessary based on published clinical trial data and clinical practice guidelines. 

“Fighting health care fraud will continue to be a priority of this office,” said United States Attorney Adam L. Braverman for the Southern District of California.  “As this settlement demonstrates, we will vigorously investigate and hold responsible laboratories and other providers that choose to submit claims to federal health care programs for unauthorized or unnecessary services.” 

The United States’ investigation was a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Southern District of California, and the Department of Health and Human Services Office of Inspector General.

The claims settled by this agreement are allegations only; there has been no determination of liability.  

Assistant U. S. Attorneys Benjamin J. Katz and Mark W. Pletcher (619) 546-9604 and (619) 546-9714

NEWS RELEASE SUMMARY – April 11, 2018

SAN DIEGO – Two doctors, Carl Lindblad and Susan Vergot, pleaded guilty in federal court today, admitting that they 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 by prescribing thousands of exorbitantly expensive compounded medications to patients that they never saw or examined.

Drs. Lindblad and Vergot entered their guilty pleas before U.S. Magistrate Judge Mitchell D. Dembin.  Both pleaded guilty to conspiracy to commit health care fraud. Their sentencings are scheduled for June 29, 2018 before U.S. District Court Judge Janis L. Sammartino. 

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

According to the guilty pleas, 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 Drs. Lindblad and Vergot.  Drs. Lindblad and Vergot then wrote prescriptions for the TRICARE beneficiaries, despite never examining the patients in person.  Once signed by the doctors, these prescriptions were not given to the beneficiaries, but sent directly to particular pharmacies controlled by co-conspirators, which filled the prescriptions and billed TRICARE at exorbitant prices.

Josh Morgan, a former Marine from San Diego, pleaded guilty last month to Conspiracy to Commit Health Care Fraud for his role in recruiting TRICARE beneficiaries to fraudulently receive these prescriptions.

Between December 2014 and May 9, 2015 – the day that TRICARE stopped reimbursing for compounded medications – Drs. Lindblad and Vergot authorized 4,442 total prescriptions.  Over this time, their co-conspirators billed TRICARE $65,679,512 for these prescriptions.

Lindblad and Vergot represent the fifth and sixth defendants charged in relation to this fraud scheme.  In addition to Morgan, 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.

DEFENDANTS                                            Case Number 18-cr-0432-JLS                                            

Carl Lindblad                                                 Age: 53                                   Cleveland, TN

Susan Vergot                                                  Age: 31                                   Cleveland, TN

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

AGENCY

Defense Criminal Investigative Service

Naval Criminal Investigative Service

IRS Criminal Investigation Division, Gulfport, MS

Federal Bureau of Investigation - Jackson, MS Field Office

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

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

NEWS RELEASE SUMMARY – April 11, 2018

SAN DIEGO – Documented Lakeside gang member Uriah Odish was indicted by a federal grand jury for selling fentanyl that led to the death of a 25-year-old La Mesa woman, identified in court documents only as T.H., who was found dead in her home on January 23.

“There is a raging opioid epidemic in this country, and we want dealers to be on notice: Every time we have an overdose death, we are going to come looking for you,” said U.S. Attorney Adam Braverman. “Attorney General Jeff Sessions has directed the Department to use all available criminal and civil tools to combat this deadly epidemic. We are firmly committed to this endeavor and will do everything in our power to stop these tragic losses.”

 “By holding dealers accountable for the deaths of overdose victims, we bring justice to loved ones and reaffirm to all those dealing in death that we will not let it go unpunished,” said DEA Special Agent in Charge Karen I. Flowers.  

Odish, 28, made an appearance in federal court this morning before U.S. Magistrate Judge Mitchell D. Dembin. The defendant declined to seek bond and remains in custody. His next hearing is scheduled for May 4.

Odish is the fourth person since January to be charged in the Southern District of California with Distribution of Fentanyl Resulting in the Death. The other cases include:

• On March 16, 2018, Corey Green was charged with distribution of fentanyl resulting in the death of a Fallbrook man. Two days before he was found dead on the floor of his home, he’d told his wife he’d been sober for 100 days. She called 911 but it was too late.
   
• On March 2, 2018, Kyle Shephard was charged with distribution of fentanyl resulting in the death of a 25-year-old Marine Corporal at Camp Pendleton. According to the complaint, Shephard distributed fentanyl pills to the Marine Corporal with Shephard acknowledging that the pills could lead to an overdose.
   
• Max Gaffney was arrested January 29, 2018, and charged with distribution of heroin resulting in death.  According to the indictment, Gaffney distributed heroin on February 16, 2017, which resulted in the death of a person identified only as K.R.

According to court records, Odish has numerous arrests and at least one prior drug felony.  As a result of his prior felony drug offense, Odish could face a mandatory sentence of life in prison for the distribution of fentanyl resulting in death.

The United States faces the deadliest drug crisis in history. Approximately 64,000 Americans lost their lives to drug overdoses in 2016 – the highest drug death toll and the fastest increase in that death toll in American history.  This epidemic is being driven primarily by opioids – prescription painkillers, heroin, and synthetic drugs like fentanyl.  For Americans under the age of 50, drug overdoses are now the leading cause of death.

In February, Braverman announced the appointment of a criminal and civil coordinator to implement our strategy to combat opioids. The newly designated Opioid Coordinators will make prosecution of all prescription opioids, heroin and fentanyl a top priority, including civil cases involving illegal diversion and unlawful prescribing of these drugs.

The United States Attorney’s Office is working closely with the San Diego County District Attorney’s Office, the San Diego County Sheriff’s Office, the Drug Enforcement Administration and our other federal, state and local law enforcement partners to investigate and prosecute these cases. Braverman thanked the La Mesa Police Department for its support in this new case. 

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

DEFENDANT                                               Case Number 18-CR-1812-BTM                                        

Uriah Odish                                        Age: 28          

SUMMARY OF CHARGES

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

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

AGENCY

La Mesa Police Department

U.S. Drug Enforcement Administration, Narcotics Task Force

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

Assistant U.S. Attorney Matthew J. Sutton (619) 546-8941

NEWS RELEASE SUMMARY – April 6, 2018

SAN DIEGO – Sinaloa Cartel drug trafficker Jesus Manuel Salazar-Nunez was sentenced to 135 months in prison today and 5 years of supervised release for his role in a drug trafficking cell responsible for shipping methamphetamine, cocaine, and heroin from Mexico for importation into San Diego.

According to court records, in 2015, Drug Enforcement Administration agents intercepted the communications of Salazar-Nunez and other high-level Sinaloa Cartel members making arrangements for tractor-trailers to travel from Sinaloa, Mexico to Baja California, Mexico, carrying methamphetamine, cocaine, and heroin hidden among canned food and drinks, frozen shrimp and vegetable boxes and other household goods. Once they arrived at a Tijuana warehouse, the narcotics were unloaded, distributed to couriers and smuggled into San Diego, California.

Salazar-Nunez recruited drivers, made arrangements with narcotics customers to use their transportation services, deposited narcotics proceeds into various Mexican bank accounts, and designed items to make it appear that the tractor-trailer loads contained all legitimate items. On September 16, 2015, agents arrested Salazar-Nunez when he flew into Hartsfield-Jackson Atlanta International Airport from Guadalajara, Mexico.

On August 14, 2017, the day scheduled for his trial, Salazar-Nunez entered a guilty plea before United States District Court Judge Dana M. Sabraw to an indictment charging him with conspiracy to import methamphetamine, cocaine, and heroin into the United States. As part of his guilty plea in the case, Salazar-Nunez admitted to making arrangements for four tractor-trailer shipments. Thanks to the cooperation of United States and Mexican law enforcement, all four of these tractor-trailers were seized in March, April, and August of 2015 in Mexico.

In court today, Judge Sabraw explained that a severe sentence was warranted because of the enormous size and lengthy scope of Salazar-Nunez’s drug trafficking activities. Noting that Salazar-Nunez used his education and professional achievements, as a college educated businessman, to help move hundreds of kilograms of narcotics month after month from Mexico to San Diego, Judge Sabraw said to Salazar-Nunez: “You are not an ordinary defendant….and you need to recognize how wrong it was.”

“Today marks yet another severe blow to the operations of the Sinaloa Cartel,” stated United States Attorney Adam L. Braverman. “The Cartel’s drug trafficking empire continues to be diminished and their power eroded with this prosecution. The dedicated efforts of our law enforcement partners in San Diego and Mexico, who greatly assisted with these seizures, shows our continued commitment to dismantle the Sinaloa Cartel.”

“Our communities might not know Mr. Salazar-Nunez by name, but they are very familiar with living in the aftermath of lives destroyed by drug addiction,” said DEA San Diego Special Agent in Charge Karen Flowers. “Addiction fed by his greed has robbed many San Diegans of their future. The San Diego law enforcement community will continue to keep the pressure on and save lives.”

This case is part of a five-year investigation led by the Southern District of California, that, in total, has resulted in charges against over 125 people and has had a significant impact on the worldwide operations of the Sinaloa Cartel. This investigation has also offered one of the most comprehensive views to date of the inner workings of one of the world’s most prolific, violent and powerful drug cartels. Cartel members and associates were targeted in this massive investigation involving multiple countries, numerous law enforcement agencies around the United States, a number of federal districts and over 250 court-authorized wiretaps in this district alone.

This investigation is also 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.

The United States was represented in court by Assistant U.S. Attorney Matthew J. Sutton.

DEFENDANT                                                        Criminal Case No. 15-CR-2380-DMS

Jesus Manuel Salazar-Nunez                                          Age: 35                      Culiacan, Mexico

SUMMARY OF CHARGES

Conspiracy to Import Controlled Substances, in violation of Title 21 U.S.C. §§ 952, 960 and 963. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release.

AGENCIES

Drug Enforcement Administration

Homeland Security Investigations

Customs and Border Protection, Office of Field Operations

Customs and Border Protection, Office of Border Patrol

United States Marshals Service

Internal Revenue Service

Federal Bureau of Investigation

United States Attorney’s Office, Northern District of Georgia

Department of Justice, Organized Crime Drug Enforcement Task Forces

Department of Justice, Office of Enforcement Operations

Department of Justice, Office of International Affairs

San Diego Law Enforcement Coordination Center

Mexico’s Secretaria de la Defensa Nacional (SEDENA)

Mexico’s Procuraduria General de la Republica (PGR)

Assistant U. S. Attorneys Michael J. Heyman and Joseph J.M. Orabona

NEWS RELEASE SUMMARY – April 6, 2018

SAN DIEGO – On April 5, 2018, J. Douglass Jennings, a disbarred California attorney, was sentenced to 34 months in federal prison for committing bankruptcy fraud (concealment of assets) and for tax evasion.  His wife Peggy Jennings was sentenced to four months in federal custody for committing bank fraud.

Mr. Jennings once touted in a commercial that he managed “one of the nation’s leading estate and tax planning law firms.”  He appeared on talk-shows and authored two books, including what he claimed in court filings was “highly regarded and one of the best and most complete estate planning treatises to date.”  Mr. Jennings also practiced what he described in an advertisement as a “faith-based” approach to financial planning, with some referring to him as “Uncle Doug.”

In January 2010, Mr. and Mrs. Jennings filed a voluntary bankruptcy petition in the United States Bankruptcy Court for the Southern District of California, In re J. Douglass Jennings, Jr. and Peggy L. Jennings, Case No. 11-04720.  On September 11, 2017, Mr. Jennings pleaded guilty to devising a scheme to defraud his unsecured creditors by concealing numerous assets and income during the bankruptcy.  Those assets and income, valued at nearly $1.5 million, included:

• A stock interest in a real-estate venture valued at approximately $1 million;
• A 53.2 foot luxury yacht known as the “Sea Eagle” valued at approximately $150,000;
• Antique silver items valued at approximately $165,139; and
• $138,694 in salary payments and other benefits in violation of a Bankruptcy Court order.

Mr. Jennings also pleaded guilty to evasion of tax payments in the amount of $5,927,093.00.

At the sentencing hearing, the Honorable Gonzalo Curiel quoted one of the victims of the fraud who described Mr. Jennings as having “manufactured a diabolical morass of massive complexity around his bankruptcy.”  Judge Curiel further described Mr. Jennings’ conduct as “callous, uncaring, and deceitful.”  Mr. Jennings was sentenced to 34 months in custody for this conduct and his lack of remorse.  The sentence was also imposed to deter Mr. Jennings from committing fraudulent conduct in the future since he was already “planning his comeback and planning his resurrection.”  The judgment additionally included an order to pay restitution to victims in the amount of $1,453,833.00 and restitution to the IRS in the amount of $5,927,093.00.

Peggy Jennings was sentenced to bank fraud in the related action, United States v. Peggy L. Jennings, Case No. 17CR2306-GPC.  Mrs. Jennings had forged her mother’s signature on loan documents, fraudulently transferred funds into her mother’s bank accounts to make it appear that her mother had substantial income, submitted false documents to the bank, and intended to cause the bank losses exceeding more than $226,000.    Mrs. Jennings was sentenced to 4 months in custody and ordered to pay a $50,000 fine and $145,481.71 in restitution.

“The bankruptcy system is designed to provide honest debtors a fresh start,” said United States Attorney Adam L. Braverman.  “Manipulation of that system through fraudulent acts can cause significant harm and suffering to innocent victims, and will be vigorously pursued.” 

“Mr. Jennings’ abuse of his position and manipulation of the system for his own personal gain will not be tolerated,” said IRS-CI Special Agent in Charge R. Damon Rowe.  “This case is an example of fraud and deceit at the highest level.  Jennings utilized his reputation and experience to lure victims and perpetrate his scheme.  Investigating these types of cases and ensuring those responsible are brought to justice continue to be a top priority for the IRS- Criminal Investigation Division.”

“This sentencing reinforces the FBI’s commitment to restoring the public’s faith in the bankruptcy system through the unwinding of this intricate web of deception, bringing this husband and wife team to justice,” said FBI Special Agent in Charge John A. Brown.  “Through our partnerships with the Internal Revenue Service and other government institutions, the FBI will continue to pursue and prosecute criminals who defraud American citizens and the U.S. Government.”

“I am grateful to U.S. Attorney Braverman and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases, as evidenced by these successful criminal prosecutions,” stated Tiffany L. Carroll, Acting U.S. Trustee for the Southern District of California, Hawaii, Guam, and the Northern Mariana Islands (Region 15).  The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.  Region 15 is headquartered in San Diego with offices in Honolulu and Guam.

DEFENDANT                                               Case Number 17CR2722-GPC                   

J. Douglas Jennings, Jr.                                  Age: 73                                   Rancho Santa Fe, CA

SUMMARY OF CHARGES FOR J. DOUGLASS JENNINGS:

Bankruptcy Fraud – Title 18, U.S.C., Section 152(1)

Evasion of Tax Payment – Title, 26 U.S.C., Section 7201

DEFENDANT                                               Case Number 17CR2306-GPC

Peggy L. Jennings                                           Age: 72                                   Rancho Santa Fe, CA

SUMMARY OF CHARGES FOR PEGGY L. JENNINGS:

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

AGENCIES

Federal Bureau of Investigation

Internal Revenue Service

Senior Mgt. Counsel and Law Enforcement Coordinator Cindy Cipriani (619) 546-9608    

NEWS RELEASE SUMMARY – March 23, 2018

SAN DIEGO – U.S. Attorney Adam Braverman will honor the work of federal, state and local law enforcement officers and bestow an award for Extraordinary Valor at the first annual Excellence in the Pursuit of Justice Awards Ceremony today. 

“Serving as a law enforcement officer is demanding, dangerous, and all too often unappreciated.  Many officers leave their families each day not knowing what dangers lurk ahead, because they want to make a difference. Those who have chosen this profession and who work selflessly day and night through the harshest of conditions are a special breed – they are heroes,” U.S. Attorney Braverman stated.  “It is no accident that America’s Finest City is also one of America’s safest cities.  The cooperation and collaboration between our federal, state and local law enforcement partners is unparalleled.  Today, I honor 80 special officers who have made a difference in our community and moved the cause of justice forward.”

U.S. Attorney Braverman’s Excellence in the Pursuit of Justice Awards are being presented this afternoon to 79 agents and officers who demonstrated creativity, initiative, and persistence to achieve justice in difficult cases, including international murder investigations, counterterrorism matters, opiate diversion conspiracies, and large takedowns of gang-led drug trafficking organizations. “Each of these agents and officers demonstrated total commitment to the cause of justice and refused to give up in the face of numerous obstacles.  They went above and beyond to ensure that justice was done, and in doing so they upheld the rule of law, brought justice to victims and enhanced community safety.” 

In addition to the Excellence in the Pursuit of Justice Awards, U.S. Attorney Braverman will present an Award for Extraordinary Valor to Special Agent Geoffrey Rice, who works in the Carlsbad office of the Bureau of Alcohol, Tobacco, Firearms and Explosives.  SA Rice happened to be attending the Route 91 Harvest music festival in Las Vegas when he heard the unmistakable sound of rapid gunfire. A mass murderer took the lives of 58 and injured more than 500 that day.  

Agent Rice was off duty and unarmed, enjoying the concert with his wife on October 1, 2017. The shooter opened fire on the large outdoor gathering of concertgoers from a high rise hotel across the street from the concert venue.  In the first few moments after the shooting began there was much confusion as to the source and nature of the sound of the gunfire over the amplified music and the background noise from a crowd of thousands.  Many people initially thought that the sound was firecrackers or something else innocuous.

As a result of his extensive tactical training, Agent Rice immediately recognized the sound as gunfire and correctly determined the direction from which it came.  After yelling out “gunfire!” he swiftly took action to move himself and his wife to cover behind a metal sound equipment box nearby, even as others in their immediate proximity were shot.  As they moved to cover, Agent Rice noticed one person who had sustained a wound to the neck, and helped carry him along to a position of cover. Agent Rice exposed himself further to the assailant’s fire to grab two young women nearby and bring them back with him to safety behind the box.

As Agent Rice and the others gathered behind the sound box, the shooter took direct aim on their cover, repeatedly shooting at it in a clear attempt to penetrate it and hit them. Agent Rice, having correctly assessed that the cover was adequate and that they were in a relatively good position, commanded everyone to stay put.  Although some felt their best chance was to run for better cover, Agent Rice’s confidence was compelling. One person nearby who left cover in an attempt to flee was fatally shot.

During a lull in the shooter’s fire, Agent Rice abandoned his position of safety and with help from another person he managed to move the person with the neck injury out into the open, where he had room to lie him flat in order to assess his injuries.  Fully exposed to the shooter, Agent Rice performed CPR on the injured person until it was clear that he could do nothing further.  As he attempted to treat the injured person the shooter resumed fire, with bullets hitting all around them. Agent Rice only then returned to safety with the injured man.

After some time the shooting stopped and Agent Rice assessed that he and the others could leave their position, and gave them calm and commanding instructions on how to do so. Agent Rice unselfishly remained on scene and at the casualty collection area nearby, volunteering to assist first responders and collecting a statement from a potential witness.

For his heroism, Agent Rice received the Award for Extraordinary Valor during today’s ceremony.

 “Agent Rice’s quick thinking and swift action, in the face of an unforeseeable event reflects on his exceptional professionalism and strength of character,” said U.S. Attorney Braverman. “His selfless choice to expose himself to a known fatal threat for an injured stranger demonstrated exceptional personal valor, and exemplifies the finest traditions of law enforcement and public service. Without question his actions saved many lives and he is a hero.”

Assistant U. S. Attorney Timothy Coughlin (619) 546-6768 and Assistant U.S. Attorney Larry A. Casper (619) 546-6734

NEWS RELEASE SUMMARY – March 16, 2018

SAN DIEGO – On November 2, 2017, a 26-year-old Fallbrook man told his wife he had been sober for 100 days. Two days later, she found him lying face down on their living room floor. She called 911 but it was too late.

Cause of death: Fentanyl toxicity.

What followed was a five-month investigation by the San Diego County Sheriff’s Department resulting in federal charges against 41-year-old Corey Bernard Green of Fallbrook, who, according to a federal complaint, supplied the drug that led to the overdose.  Green is charged with Distribution of Fentanyl Resulting in the Death of the Fallbrook man, identified in court documents only as JAS.

“As the opioid epidemic rages across the nation, we will do everything we can to save lives,” said U.S. Attorney Adam Braverman. “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.”

“This investigation and criminal filing represents the San Diego Sheriff's Department's commitment to combating the opioid epidemic, utilizing every available resource to identify and apprehend suspects whose narcotic trafficking activities lead to so many needless deaths,” said Sheriff Bill Gore. 

The investigation by a San Diego Sheriff’s detective determined that JAS took an Uber taxi to Green’s Fallbrook residence to purchase fentanyl. An examination of JAS’s cell phone confirmed he paid for an Uber taxi on Friday morning, November 3, 2017. The detective obtained Green’s cell phone after he was arrested on unrelated charges of manufacturing a controlled substance. Text messages obtained from Green’s cell revealed he had been in contact with JAS for several days prior to the overdose death.

Their drug-based relationship culminated on Friday November 3, 2017, when Green allegedly sold JAS a fentanyl- laced product.  The contents of that text message are included below:

11-1-17 JAS  “Hey u up?”

11-2-17 Green   “I’m Up”

11-2-17 JAS   “And I’m sure you already know but I have no cash just these bottles and batteries of u need”

11-2-17 Green  “I only have a little China but it’s even a ton stronger then the last powder”

11-2-17 JAS  “Just did half. Feeling good. Thanks again.”

11-2-17 Green   “Ok”

11-3-17 JAS   “I actually got money today! No chance I could get you to come out if I pay extra?”   Or if you’re up I could take an uber real quick”

11-3-17 Green   “R u driving?” Will you have that Uber stop at McDonalds for me? I’ll throw you a little extra?  It’s China.”

According to the complaint, the slang term “China,” when used in this context, is reference to a strong heroin containing fentanyl.  

The last known contact with JAS occurred Friday night, November 3, 2017, when he said good night to his wife and went to play video games in the couple’s living room. She woke up the next morning and found him.

An investigation of Green’s recent criminal activity found that on November 30, 2017, Green was arrested and charged by the San Diego District Attorney’s Office with manufacturing a controlled substance.  Green subsequently pleaded guilty to that charge and is currently serving a sentence in state custody.  The United States has filed a writ to have Green transferred into federal custody to face the Distribution of Fentanyl Resulting in Death charge. He is expected to appear before a U.S. Magistrate Judge in federal court next week to face the federal charge.

The U.S. Attorney’s Office has recently charged two other individuals with the same crime. Alleged fentanyl distributor Kyle Anthony Shephard was arrested and charged in February with Distribution of Fentanyl Resulting in Death.  According to the complaint, Shephard distributed fentanyl to a United States Marine on January 27, 2017, which resulted in the death of the Marine identified in the complaint only as “MC.”  For further information, please see Case Number 18-mj-0935-MDD.

While final numbers have not been released, preliminary estimates reflect that deaths caused by fentanyl analogs doubled in San Diego County in 2017 over 2016.

DEFENDANT                                     Case Number 18-mj-1215-BGS                                              

Corey Bernard Green                            Age: 41           

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

AGENCY

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

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

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

NEWS RELEASE SUMMARY – March 15, 2018

SAN DIEGO – Vincent Ramos, the chief executive of Canada-based Phantom Secure, and four of his associates were indicted by a federal grand jury today on charges that they knowingly and intentionally participated in a criminal enterprise that facilitated the transnational importation and distribution of narcotics through the sale and service of encrypted communications.

This is the first time the U.S. government has targeted a company and its principals for knowingly and intentionally conspiring with criminal organizations by providing them with the technological tools to evade law enforcement and obstruct justice while committing transnational drug trafficking.

“With one American dying of a drug overdose every nine minutes, our great nation is suffering the deadliest drug epidemic in our history,” Attorney General Jeff Sessions said. “Incredibly, some have sought to profit off of this crisis, including by specifically taking advantage of encryption technologies to further criminal activity, and to obstruct, impede, and evade law enforcement, as this case illustrates.  The Department of Justice will aggressively prosecute not just drug traffickers, but those who help them spread addiction and death in our communities. I want to thank the FBI, DEA, Customs and Border Protection, Homeland Security Investigations, Washington State Police, the Bellingham and Blaine Police Departments, and all of our law enforcement partners around the world, including Australia, Canada, Panama, Hong Kong, and Thailand for their hard work on this case. Today's indictment sends a clear message that drug traffickers and criminals cannot hide, because we will hunt them down and find them wherever they are.”

“When criminals go dark, and law enforcement cannot monitor their phones or access evidence, crimes cannot be solved, criminals cannot be stopped and lives can be lost,” said U.S. Attorney Adam Braverman. “As a result of this groundbreaking prosecution, we will disable the communication infrastructure provided by a criminal enterprise to drug traffickers and other violent criminals. Phantom Secure was designed to profit off of criminal activity committed by transnational criminal organizations around the world. We are committed to shutting these criminals down.”

“The indictment of Vincent Ramos and his associates is a milestone against transnational crime,” said FBI Director Christopher Wray.  “Phantom Secure allegedly provided a service designed to allow criminals the world over to evade law enforcement to traffic drugs and commit acts of violent crime without detection. Ramos and his company made millions off this criminal activity, and our takedown sends a serious message to those who exploit encryption to go dark on law enforcement. I want to thank our partners at the Department of Justice, as well as our Australian and Canadian law enforcement partners, for their incredible work on this case.”

 “Hidden or undetected communication is key for any transnational organized crime network,” said John A. Brown, FBI Special Agent in Charge of the San Diego Field Office. “This case highlights how criminal enterprises, like Phantom Secure, knowingly provided advanced technology and encrypted private networks to transnational criminal operations in order to evade law enforcement. This break-through investigation has undoubtedly disrupted countless criminal organizations from operating their illegal and dangerous operations in the United States and abroad because their communications mechanism has been shut down.  This indictment shows the impact law enforcement, working together across the globe, can have on transnational organized criminal groups.  The San Diego Division of the FBI would like to recognize and thank our international law enforcement partners, who built this international case with exceptional and dedicated collaboration.”

Ramos was taken into custody in Bellingham, Washington, on March 7.  Ramos made his first appearance in the Western District of Washington and will face charges in San Diego. The remaining four defendants are fugitives.

According to court documents, Phantom Secure advertised its products as impervious to decryption, wiretapping or legal third-party records requests. Phantom Secure also guaranteed the destruction of evidence contained within a device if it was compromised, either by an informant or because it fell into the hands of law enforcement.  According to court documents, Phantom Secure’s clients used email handles like the following to conduct criminal activities: 

leadslinger@freedomsecure.me

The.cartel@freedomsecure.me

The.killa@freedomsecure.me

narco@lockedpgp.com

Trigger-happy@lockedpgp.com

Knee_capper9@lockedpgp.com

Elchapo66@lockedpgp.com

Time4a187@freedomsecure.me 

The indictment alleges that as a result of its efforts to facilitate international crime, Phantom Secure has generated approximately $80 million in annual revenue since 2008 and facilitated drug trafficking, obstruction of justice, and violent crime around the world. 

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

Over the past two weeks, in cooperation with Australian Federal Police and Royal Canadian Mounted Police, more than 250 agents around the globe conducted approximately 25 searches of houses and offices of Phantom Secure associates in Los Angeles, Las Vegas, Miami, and in Australia and Canada, seizing Phantom Secure devices, assets, and evidence of the charged crimes.  The coordinated effort led to the seizure of servers, computers, cell phones, and Phantom Secure devices used to operate the Phantom Secure network, as well as drugs and weapons. 

Ramos and the others - Kim Augustus Rodd, Younes Nasri, Michael Gamboa and Christopher Poquiz - are charged with participating in and aiding and abetting a racketeering enterprise and conspiring to import and distribute controlled substances around the world. The defendants have been charged with Conspiracy to Commit RICO in violation of 18 U.S.C. § 1962 and Conspiracy to Aid and Abet the Distribution of Controlled Substances in violation of 21 U.S.C.  § 841 and 846.

Authorities have seized Phantom Secure’s property, including more than 150 domains and licenses which were being used by transnational criminal organizations to send and receive encrypted messages. Authorities also seized bank accounts and property in Los Angeles, California and Las Vegas, Nevada.   

This case stems from an investigation in the Southern District of California of a Phantom Secure client who used Phantom devices to coordinate shipments of thousands of kilograms of cocaine and other drugs throughout the globe.  According to court documents, there were an estimated 10,000 to 20,000 Phantom devices in use worldwide before the authorities dismantled the company. This coordinated action means Phantom Secure’s clients can no longer use these devices to commit crimes.

According to Timothy O’Connor, Executive Director of the Criminal Investigations Division New South Wales Crime Commission, “The disruption of the Phantom Secure platform has been one of the most significant blows to organized crime in Australia.”    

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

Speaking on behalf of Australian law enforcement authorities, Australian Federal Police (AFP) Assistant Commissioner Organised Crime, Neil Gaughan said today Australia’s role in this complex and unique investigation began in early 2017 following an exchange of intelligence with the FBI and Royal Canadian Mounted Police (RCMP).

As a result, Australian authorities executed 19 search warrants across four states last week as part of the international action, where more than 1,000 encrypted mobile devices were seized.

“The action taken in the U.S. directly impacts the upper echelons of organized crime both here in Australia and offshore, who until now have been able to confidently control and direct illicit activity like drug importations, money laundering and associated serious criminal offending,” said Assistant Commissioner Gaughan.

“Our thanks go to our international partners – the FBI and RCMP – who have been outstanding in working methodically around the clock together with us on this unique investigation. Without their cooperation, commitment and shared singular drive, Australian law enforcement agencies would not be announcing this significant result today.”

Australian agencies involved in this investigation include the Australian Criminal Intelligence Commission, the New South Wales Crime Commission, state police from New South Wales, Victoria, Queensland, South Australia and Western Australia, the Australian Tax Office and financial intelligence agency AUSTRAC.

“This investigation is a prime example of law enforcement agencies from around the world working together to identify, investigate and charge people involved in transnational criminal activity,” says Assistant Commissioner Jim Gresham, RCMP Criminal Operations Officer, Investigative Services and Organized Crime. “We remain committed to investigating and disrupting these illegal activities that adversely affect each of our communities.”

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.

DEFENDANTS                                                                                           

Vincent Ramos (1)                              Richmond, British Columbia Canada

   aka “CEO”

   aka “Business”

Kim Augustus Rodd (2)                      Phuket, Thailand

   aka Visith Vongthai

   aka “Snowstar”

   aka “Global”

Younes Nasri (3)                                 Dubai, United Arab Emirates

   aka “Maestro”

   aka “Jesse”

Michael Gamboa (4)                           Los Angeles, CA

   aka “Chino”

Christopher Poquiz (5)                       Los Angeles, CA

   aka “Caddy”

   aka “Cad”

SUMMARY OF CHARGES

Racketeering Conspiracy to Conduct Enterprise Affairs (RICO Conspiracy), in violation of 18 USC §1962(d)

Maximum Penalty: Life in prison

Conspiracy to Aid and Abet the Distribution of Narcotics, in violation of 21 USC §841 and 846; Title 18 USC §2

Maximum Penalty: Life in prison

AGENCIES

Federal Bureau of Investigation

Drug Enforcement Administration

Department of Justice, Office of International Affairs

Australian Federal Police

New South Wales Police (Australia)

New South Wales Crime Commission (Australia)

Australian Criminal Intelligence Commission

Royal Canadian Mounted Police

International Assistance Group, Department of Justice, Canada

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

Vincent Ramos, the chief executive of Canada-based Phantom Secure, and four of his associates were indicted by a federal grand jury today on charges that they knowingly and intentionally participated in a criminal enterprise that facilitated the transnational importation and distribution of narcotics through the sale and service of encrypted communications.

This is the first time the U.S. government has targeted a company and its principals for knowingly and intentionally conspiring with criminal organizations by providing them with the technological tools to evade law enforcement and obstruct justice while committing transnational drug trafficking.

“With one American dying of a drug overdose every nine minutes, our great nation is suffering the deadliest drug epidemic in our history,” said Attorney General Jeff Sessions. “Incredibly, some have sought to profit off of this crisis, including by specifically taking advantage of encryption technologies to further criminal activity, and to obstruct, impede, and evade law enforcement, as this case illustrates.  The Department of Justice will aggressively prosecute not just drug traffickers, but those who help them spread addiction and death in our communities. I want to thank the FBI, DEA, Customs and Border Protection, Homeland Security Investigations, Washington State Police, the Bellingham and Blaine Police Departments, and all of our law enforcement partners around the world, including Australia, Canada, Panama, Hong Kong, and Thailand for their hard work on this case. Today's indictment sends a clear message that drug traffickers and criminals cannot hide, because we will hunt them down and find them wherever they are.”

“When criminals go dark, and law enforcement cannot monitor their phones or access evidence, crimes cannot be solved, criminals cannot be stopped and lives can be lost,” said U.S. Attorney Adam Braverman. “As a result of this groundbreaking prosecution, we will disable the communication infrastructure provided by a criminal enterprise to drug traffickers and other violent criminals. Phantom Secure was designed to profit off of criminal activity committed by transnational criminal organizations around the world. We are committed to shutting these criminals down.”

“The indictment of Vincent Ramos and his associates is a milestone against transnational crime,” said FBI Director Christopher Wray.  “Phantom Secure allegedly provided a service designed to allow criminals the world over to evade law enforcement to traffic drugs and commit acts of violent crime without detection. Ramos and his company made millions off this criminal activity, and our takedown sends a serious message to those who exploit encryption to go dark on law enforcement. I want to thank our partners at the Department of Justice, as well as our Australian and Canadian law enforcement partners, for their incredible work on this case.”

Ramos was taken into custody in Bellingham, Washington, on March 7.  Ramos made his first appearance in the Western District of Washington and will face charges in San Diego. The remaining four defendants are fugitives.

According to court documents, Phantom Secure advertised its products as impervious to decryption, wiretapping or legal third-party records requests. Phantom Secure also guaranteed the destruction of evidence contained within a device if it was compromised, either by an informant or because it fell into the hands of law enforcement.  

The indictment alleges that as a result of its efforts to facilitate international crime, Phantom Secure has generated approximately $80 million in annual revenue since 2008 and facilitated drug trafficking, obstruction of justice, and violent crime around the world. 

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

Over the past two weeks, in cooperation with Australian Federal Police and Royal Canadian Mounted Police, more than 250 agents around the globe conducted approximately 25 searches of houses and offices of Phantom Secure associates in Los Angeles, Las Vegas, Miami, and in Australia and Canada, seizing Phantom Secure devices, assets, and evidence of the charged crimes.  The coordinated effort led to the seizure of servers, computers, cell phones, and Phantom Secure devices used to operate the Phantom Secure network, as well as drugs and weapons. 

Ramos and the others - Kim Augustus Rodd, Younes Nasri, Michael Gamboa and Christopher Poquiz - are charged with participating in and aiding and abetting a racketeering enterprise and conspiring to import and distribute controlled substances around the world. The defendants have been charged with Conspiracy to Commit RICO in violation of 18 U.S.C. § 1962 and Conspiracy to Aid and Abet the Distribution of Controlled Substances in violation of 21 U.S.C.  § 841 and 846.

Authorities have seized Phantom Secure’s property, including more than 150 domains and licenses which were being used by transnational criminal organizations to send and receive encrypted messages. Authorities also seized bank accounts and property in Los Angeles, California and Las Vegas, Nevada.   

This case stems from an investigation in the Southern District of California of a Phantom Secure client who used Phantom devices to coordinate shipments of thousands of kilograms of cocaine and other drugs throughout the globe.  According to court documents, there were an estimated 10,000 to 20,000 Phantom devices in use worldwide before the authorities dismantled the company. This coordinated action means Phantom Secure’s clients can no longer use these devices to commit crimes.

According to Timothy O’Connor, Executive Director of the Criminal Investigations Division New South Wales Crime Commission, “The disruption of the Phantom Secure platform has been one of the most significant blows to organized crime in Australia.”    

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

Speaking on behalf of Australian law enforcement authorities, Australian Federal Police (AFP) Assistant Commissioner Organised Crime, Neil Gaughan said today Australia’s role in this complex and unique investigation began in early 2017 following an exchange of intelligence with the FBI and Royal Canadian Mounted Police (RCMP).

As a result, Australian authorities executed 19 search warrants across four states last week as part of the international action, where more than 1,000 encrypted mobile devices were seized.

“The action taken in the U.S. directly impacts the upper echelons of organized crime both here in Australia and offshore, who until now have been able to confidently control and direct illicit activity like drug importations, money laundering and associated serious criminal offending,” said Assistant Commissioner Gaughan.

“Our thanks go to our international partners – the FBI and RCMP – who have been outstanding in working methodically around the clock together with us on this unique investigation. Without their cooperation, commitment and shared singular drive, Australian law enforcement agencies would not be announcing this significant result today.”

Australian agencies involved in this investigation include the Australian Criminal Intelligence Commission, the New South Wales Crime Commission, state police from New South Wales, Victoria, Queensland, South Australia and Western Australia, the Australian Tax Office and financial intelligence agency AUSTRAC.

“This investigation is a prime example of law enforcement agencies from around the world working together to identify, investigate and charge people involved in transnational criminal activity,” says Assistant Commissioner Jim Gresham, RCMP Criminal Operations Officer, Investigative Services and Organized Crime. “We remain committed to investigating and disrupting these illegal activities that adversely affect each of our communities.”

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.

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


DEFENDANTS                                

Vincent Ramos (1)                              Richmond, British Columbia Canada    aka “CEO”    aka “Business”

Kim Augustus Rodd (2)                      Phuket, Thailand    aka Visith Vongthai    aka “Snowstar”    aka “Global”

Younes Nasri (3)                                 Dubai, United Arab Emirates    aka “Maestro”    aka “Jesse”

Michael Gamboa (4)                           Los Angeles, CA    aka “Chino”

Christopher Poquiz (5)                       Los Angeles, CA    aka “Caddy”    aka “Cad”


SUMMARY OF CHARGES

Racketeering Conspiracy to Conduct Enterprise Affairs (RICO Conspiracy), in violation of 18 USC §1962(d)
Maximum Penalty: Life in prison

Conspiracy to Aid and Abet the Distribution of Narcotics, in violation of 21 USC §841 and 846; Title 18 USC §2
Maximum Penalty: Life in prison
 

For Further Information, Contact: Assistant U.S. Attorney

Joseph J.M. Orabona (619)546-7951

NEWS RELEASE SUMMARY – March 13, 2018

SAN DIEGO – Renan Dias Da Rocha Gomes, a former employee aboard the Disney Wonder cruise ship, was sentenced today to 15 months in prison for wire fraud in connection with his scheme to embezzle more than $260,000 from The Walt Disney Company.

Agents with the Federal Bureau of Investigation and Homeland Security Investigations arrested Gomes on October 27, 2017, when the Disney Wonder made port in San Diego, California. According to his plea agreement, Gomes admitted that from at least October 2015 through October 27, 2017, he was employed as a merchandise host and assigned to work in the merchandise stores aboard the Disney Wonder.  He admitted he executed his scheme by fraudulently obtaining money through his access to an online payment system in order to embezzle funds from Disney for his own personal use and benefit. 

As evidenced by his guilty plea, Gomes made approximately $260,000 in unauthorized charges to Disney’s bank account, and loaded the value of the funds onto Disney gift cards while working aboard the Disney Wonder on the high seas. During the search of Gomes’ cabin aboard the Disney Wonder, investigators found approximately 217 gift cards, a stolen watch, and $1,240 in cash.

Gomes also admitted that from April 23, 2017 through May 7, 2017, he spent approximately $37,700 of the embezzled funds for his own personal benefit by taking his family on a Disney World vacation.  While on this vacation, Gomes stated that he used the gift cards with the embezzled funds to pay approximately $8,200 on lodging, approximately $29,500 on food, beverage, merchandise and entertainment expenses. 

As part of the sentence today, the Court ordered Gomes to pay restitution to The Walt Disney Company in the total amount of funds he stole.  In addition, the Court ordered Gomes to criminally forfeit the stolen watch and $1,240 in cash which were proceeds of his wire fraud. 

In order to work aboard the Disney Wonder, Gomes, who is a Brazilian national, obtained a temporary visa.  As a consequence of his criminal conviction, Gomes’ visa was cancelled and he will be removed from the United States to Brazil following the completion of his prison term.

“Today’s sentence should remind the public that the U.S. Attorney’s Office is committed to protecting consumers and enforcing the law against employees who embezzle funds from their employers for their own personal benefit,” said United States Attorney Adam L. Braverman. “The defendant in this case has been held accountable for his criminal conduct and for the way he cheated his employer.”

“The FBI is committed to identifying, investigating, and bringing those responsible for fraudulent criminal activity to justice,” said FBI Special Agent in Charge John A. Brown. “We want to encourage San Diego citizens and businesses alike to report suspicious or fraudulent activity to the FBI. It is this partnership between our community and law enforcement partners that allows us to better protect against these fraudulent actors.”

DEFENDANT                                   Criminal Case No. 17CR3897-CAB

Renan Dias Da Rocha Gomes            Age: 32           Citizenship: Brazil

SUMMARY OF CHARGES:

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

Maximum Penalties: maximum of 20 years in prison; maximum fine of $250,000; maximum term of supervised release of three years; restitution; criminal forfeiture

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Homeland Security Investigations, Immigration and Customs Enforcement

U.S. Customs and Border Protection

Assistant U. S. Attorneys Aaron P. Arnzen (619) 546-8384 Emily W. Allen (619) 546-9738

NEWS RELEASE SUMMARY – March 12, 2018

SAN DIEGO – A stockbroker was convicted of insider trading by a federal jury Friday, and a codefendant pleaded guilty this morning – the day his trial was set to begin.

The jury found stockbroker Paul Rampoldi guilty of conspiracy to commit insider trading, wire fraud, and money laundering, in connection with an illegal trade based on an insider tip about the merger of San Diego firm Ardea Biosciences, Inc. with multinational pharmaceutical company AstraZeneca.

Separately, William Scott Blythe, Rampoldi’s client who placed the trade and secretly paid Rampoldi his share of the profits in tens of thousands of dollars in cash, appeared in court this morning on the date set for his trial, and pleaded guilty to engaging in the same conspiracy. Blythe admitted in his plea agreement that the inside information came from Ardea’s then-director of Information Technology Michael Fefferman, and proved to be extremely lucrative – as the conspirators profited more than 1,500% from their illegal stock trades.

The evidence presented at trial showed that in April 2012, Ardea insider Fefferman learned that the company was planning to merge with AstraZeneca.  He also knew that this secret news would boost Ardea’s stock price by a hefty 50%. Before the merger was announced to the public, Fefferman passed the inside information on to his close friend and brother-in-law Chad Wiegand, a licensed stockbroker at National Planning Corporation (NPC).  Wiegand passed the information on to his coworker at NPC, Akis Eracleous, who was also a licensed stockbroker.  Eracleous, in turn, passed the tip to defendants Rampoldi and Blythe, and the three agreed (to avoid suspicion and scrutiny) that Blythe would trade on the information in his non-NPC brokerage account, and then they would all share the profits. 

On the Friday before the merger was announced publicly, Blythe bought more than $5,400 in risky Ardea stock options.  On Monday – the next trading day after the merger announcement was released – Blythe sold the options for nearly $89,000. Blythe distributed approximately $40,000 of the fraudulent proceeds in cash to Rampoldi and Eracleous to hide the paper trail, and paid $2,000 in cash to Wiegand to compensate him for the tip.  After Forbes magazine reported on Blythe’s spectacular earnings, the group realized an investigation was brewing, and they got together to work on their cover story to mislead the FBI and financial industry investigators.

Fefferman, Wiegand, and Eracleous were each charged previously, and each has admitted his involvement in the insider trading and agreed to cooperate with the investigation.  Rampoldi and Blythe are scheduled to be sentenced on May 25, 2018, at 9:00 am before U.S. District Judge Dana M. Sabraw.  The jury hearing Rampoldi’s case was unable to reach a verdict on two other counts facing him, so a status hearing is set for March 23, 2018, at 11:00 am before Judge Sabraw to discuss a possible retrial on those counts.

DEFENDANTS (16CR1842-DMS):

Paul Rampoldi                                                Age: 50           San Diego, CA

Scott Blythe                                                    Age: 53           San Diego, CA

Charges of Conviction

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

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

DEFENDANTS PREVIOUSLY CHARGED:

Chad Wiegand, 15CR1462-DMS                   Age: 43           Lakeside, CA

Akis Eracleous, 15CR1462-DMS                  Age: 50           San Diego, CA

Michael Fefferman, 15CR1534-DMS            Age: 45           Escondido, CA

AGENCIES

Federal Bureau of Investigation

Securities and Exchange Commission

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

NEWS RELEASE SUMMARY – March 12, 2018

SAN DIEGO – Egisto Salerno, a medical doctor, who owns and operates a medical office on El Cajon Boulevard in San Diego, and seven others have been arrested on federal charges stemming from their alleged roles in a conspiracy to possess with the intent to distribute hydrocodone as part of a ‘pill mill’ operation. 

Special agents with the Drug Enforcement Administration arrested Dr. Egisto Salerno, 73, of San Diego; Stephen Toney, 57, of San Diego; April Cervantes, 27, of San Diego; David Apple, 25, of Chula Vista; Amber Horne, 28, of El Cajon; Lonnell Ligon, 55, of San Diego; Shalina Latson, 47, of San Diego; and LaJuan Smith, 38, of San Diego.  Each is charged with one count of conspiracy to possess with the intent to distribute a controlled substance.

The complaint alleges that, beginning not later than November 2014, defendant Stephen Toney and others recruited individuals, often homeless or of limited means, to pose as “patients” at the office of Salerno to obtain hydrocodone prescriptions.  Salerno, who received an office visit fee for each “patient,” performed a cursory or no physical examination and prescribed the hydrocodone despite the lack of any legitimate medical purpose and outside the usual course of professional practice.  The “patients” were paid for turning over their hydrocodone tablets to defendants. The defendant recruiters arranged transportation of these “patients” to Salerno’s office, to a pharmacy to pick up the hydrocodone, and then returned them to or near homeless shelters or their residences.  Toney and other co-conspirators intended to further distribute these hydrocodone tablets.

Salerno is alleged to have prescribed hydrocodone for, among others, dead “patients” and “patients” who were in jail and who could not, therefore, have been in Salerno’s office when they were allegedly examined by Salerno and hydrocodone was prescribed in their names.  For example, one patient died in October 2015 and Salerno allegedly saw that patient and prescribed hydrocodone in that patient’s name five times after death, including two prescriptions written more than a year after the death. 

According to the charging documents, Salerno and two of his medical assistants allegedly falsified chart notes and medical records to justify these hydrocodone prescriptions and further the conspiracy.  In one instance, the medical chart for an undercover agent who visited the clinic was seized by agents during execution of a search warrant. That chart included a set of medical examination notes in Salerno’s handwriting and signed by him purporting to document a visit that never occurred.  The charging documents allege that hydrocodone was prescribed on that date in the name of the undercover agent and the tablets were picked up from the pharmacy by defendant Stephen Toney.

Hydrocodone is the generic name for a narcotic analgesic that is sold under a variety of brand names such as Vicodin, Norco and Lortab. When legally supplied by a licensed practitioner for a legitimate medical purpose in the usual course of professional practice, hydrocodone is used to combat moderate pain.  It is a Schedule II controlled substance (narcotic) that is widely abused and it is frequently diverted from legitimate medical channels and distributed illicitly on the street for profit and abuse.

“The opioid crisis is ravaging families in San Diego and Imperial Counties and is part of a national epidemic,” said U.S. Attorney Adam Braverman.  “We are and will continue to zealously prosecute and bring to justice those doctors, pharmacies, medical providers and others who are furthering this epidemic to line their own pockets.”

“Patients trust their doctors to give them the best care possible,” said DEA San Diego Acting Special Agent in Charge Steve Woodland.  “It’s DEA’s responsibility to ensure that DEA registrants are worthy of that trust.  DEA will keep conducting these investigations to ensure that registrants are following all the rules when prescribing these potentially deadly drugs.”

Anyone with information about opioid abuse/diversion or other drug diversion should report that to the Drug Enforcement Administration at https://apps.deadiversion.usdoj.gov or contact the DEA hotline at 1-877-RX-Abuse (1-877-792-2873).   

DEFENDANTS                                            Case Number 18mj1080                                          

Egisto Salerno                                                 Age: 73                                   San Diego, CA

Stephen Toney                                                Age: 57                                   San Diego, CA           

April Cervantes                                               Age: 27                                   San Diego, CA

David Apple                                                    Age: 25                                   Chula Vista, CA

Amber Horne                                                  Age: 28                                   El Cajon, CA

Lonnell Ligon                                                 Age: 55                                   San Diego, CA

Shalina Latson                                                Age: 47                                   San Diego, CA

LaJuan Smith                                                  Age: 38                                   San Diego, CA

SUMMARY OF CHARGES

Conspiracy to Unlawfully Distribute and Dispense a Controlled Substance, 21 U.S.C. 846

Maximum penalty: 20 years’ imprisonment; $1,000,000 fine or twice the pecuniary gain or loss, whichever is greater, and five years’ supervised release.

INVESTIGATING AGENCIES

Drug Enforcement Administration

Internal Revenue Service

Health and Human Services-Office of Inspector General

California Department of Health Care Services

San Diego County Sheriff’s Department

California Department of Justice

San Diego Police Department

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

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

NEWS RELEASE SUMMARY – March 9, 2018

SAN DIEGO – Two more gang members of the Westside Crips were sentenced today for their participation in a racketeering conspiracy involving sex trafficking, narcotics trafficking and other violent crimes.  A mid-level drug dealer who sold narcotics to gang members was also sentenced for his participation in the racketeering conspiracy and for conspiracy to distribute methamphetamine.     

Peter Miranda (aka “Fat Boy,” “Baby Rocks,” and “Lil’ Burger”), Jasiri Lacey (aka “Baby Westwood” and “Baby West”), and Larry Monroe previously admitted their respective membership and association with the Westside Crips, who primarily operated in Oceanside and elsewhere.  Today, U.S. District Judge John A. Houston sentenced Miranda to 45 months in prison. He sentenced Lacey to 72 months in prison.  Judge Houston also sentenced Monroe for both of his crimes to 180 months in prison.  

According to court documents, the members of the conspiracy were involved in drug trafficking, prostitution, attempted murder, assaults and robberies.  Their criminal activity primarily occurred between 2004 through February 2017.  According to court documents, members of Westside Crips are akin to a crime family, where all members work together committing various crimes for the purpose of making money.

In furtherance of the RICO conspiracy, Miranda admitted he engaged in promoting prostitution of an adult female between June and November 2015.  In October 2015, Miranda transported the adult female for the purposes of prostitution.  Miranda also admitted that he sold narcotics to benefit the Westside Crips.  For example, in October 2008, he sold cocaine base in Oceanside, California. Lastly, Miranda promoted his involvement as a gang member in the Westside Crips by posting on Facebook, displaying gang signs, and wearing Westside Crips’ colors (blue) and affiliated clothing. 

To further his role in the RICO conspiracy, Lacey admitted he engaged in two extremely violent robbery offenses, including one in which he pointed a shotgun at the victim and robbed him of his marijuana and other items.  Lacey admitted he also was involved in the robbery of a wireless store in San Diego with two other accomplices who used handguns to steal 120 cellular phones, two laptop computers, and nine Apple iPads. This caused the wireless store to lose approximately $8,500.  Lacey also admitted he promoted the prostitution of an adult female by using a smuggled cell phone while he was in prison and directed another gang member to manage one of the women working for Lacey as a prostitute.     

As a mid-level drug dealer associated with the Westside Crips, Monroe admitted he distributed methamphetamine to gang members of the Westside Crips and others from December 2009 through October 2015.   Throughout that period, Monroe sold various quantities of methamphetamine in furtherance of his role in two conspiracies – the RICO conspiracy and the conspiracy to distribute methamphetamine. 

“Gang members and drug traffickers who continue to sell dangerous narcotics and exploit members of our community for their own personal gain and notoriety shall be vigorously prosecuted for their crimes,” said U.S. Attorney Adam L. Braverman.

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

DEFENDANTS                                            Case Numbers: 17cr0270-JAH, 17cr0214-JAH                

Peter Miranda aka “Fat Boy,” “Baby Rocks”, “Lil’ Burger”             Age: 33                       Oceanside, CA

Jasiri Malcolm Lacey aka “Baby Westwood,” “Baby West”            Age: 26                       Oceanside, CA

Larry Darnell Monroe                                                                         Age: 60                       Oceanside, CA

PRIOR DEFENDANTS’ SENTENCES   

Ameer Roby aka “Tiny Dum Dum”               Sentenced to:                          48 months in prison

Michael Sullivan aka “Du-Low”                    Sentenced to:                          36 months in prison

Shane Anderson aka “Tiny Westwood”         Sentenced to:                          28 months in prison

Richard Cleveland aka “Face”                        Sentenced to:                          57 months in prison

Umesh Oza (hotel manager)                           Sentenced to:                          4 months in prison;180 days of

home confinement

SUMMARY OF CHARGES FOR MIRANDA AND LACEY

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’ in prison, a fine of $250,000, three years of supervised release

SUMMARY OF CHARGES FOR MONROE

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’ in prison, a fine of $250,000, three years of supervised release

Title 21, United States Code, Sections 841(a)(1) and 846 – Conspiracy to Distribute Methamphetamine

Penalties: Mandatory minimum of 10 years’ in prison, and a maximum of life in prison, a fine of $250,000, five years of supervised release

AGENCIES

North County Narcotics Task Force

Drug Enforcement Administration

Oceanside Police Department

Internal Revenue Service

Assistant U.S. Attorney Joseph P. Price, Jr. (619) 546-7642, Assistant U.S. Attorney Joseph J. Purcell (619) 546-7643      

NEWS RELEASE SUMMARY – March 12, 2018

SAN DIEGO –   TrellisWare Technologies, Inc., a communications company located in San Diego, has agreed to pay $12,177,631.90 to settle civil False Claims Act allegations that it was ineligible for multiple Small Business Innovation and Research (SBIR) contracts it had entered into with government defense agencies. TrellisWare is a majority-owned subsidiary of ViaSat, Inc., a global broadband services and technology company also headquartered in San Diego. 

The SBIR program is designed to stimulate technological innovation by funding small businesses to engage in federal research and development efforts. To be considered a small business for purposes of SBIR awards, a contractor must not be majority owned by another company. Between 2008 and 2015, TrellisWare was awarded multiple SBIR contracts to provide the Navy, Army and Air Force with a variety of technology services and products involving communications and signal processing systems, including wireless networks used in military tactical environments. TrellisWare self-certified that it met the small business size requirements for eligibility to receive SBIR funding.  But based on certain disclosures that TrellisWare later made about its ownership relationship with ViaSat, the government conducted an investigation into TrellisWare’s eligibility for SBIR awards.  The government contends that TrellisWare was not eligible for SBIR awards because it was actually a majority-owned subsidiary of ViaSat at the time it was awarded and performed on SBIR contracts.

“False certifications of eligibility for SBIR funding siphons taxpayer dollars from the program’s intended beneficiaries. We will continue to work with our agency partners to bring to account those that breach the public trust by submitting false claims,” said Adam L. Braverman, United States Attorney for the Southern District of California.

“Companies must exercise due diligence when self-certifying eligibility to gain access to programs set aside for small business or else face significant penalties,” said Kari Overson, Special Agent in Charge of the Small Business Administration, Office of the Inspector General’s Western Regional Office.  “The SBIR program enables small businesses to explore their technological potential and provides qualified small businesses access to the nation’s research and development arena.   I want to thank the U.S Attorney’s Office and our law enforcement partners for their dedication and hard work throughout this investigation.”

Chris Hendrickson, Special Agent in Charge of the Western Field Office, Defense Criminal Investigative Service, said: “DCIS is committed to working with its partners and the U.S. Attorney’s Office to aggressively investigate false claims by government contractors. These unethical practices stifle fair competition and erode the public’s trust in government.”

“The success of this case is a direct result of the joint efforts of the Naval Criminal Investigative Service, our Federal Law Enforcement Partners and the U.S. Attorney’s Office,” said Edward Denion, Assistant Special Agent in Charge of the NCIS Southwest Field Office. “Protecting our warfighters is one of the top priorities of NCIS, and this investigation is an example of how we do this.  Anyone considering defrauding the Navy and taxpayers should know NCIS will aggressively pursue all such allegations.”

“This settlement stands as further confirmation of the great work our agents do every day,” said Frank Robey, Director of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit. “The funds recovered can now be used for a proper purpose - supporting the men and women of our Armed Forces.”

This matter was investigated by Assistant U.S. Attorneys Joseph P. Price, Jr. and Joseph J. Purcell and auditing personnel of the Affirmative Civil Enforcement Unit of the U.S. Attorney’s Office, in coordination with Special Agents of the Defense Criminal Investigative Service; Naval Criminal Investigative Service; Army Criminal Investigation Command; Air Force Office of Special Investigations; and Small Business Administration, Office of the Inspector General. 

Agencies:

Defense Criminal Investigative Service

Naval Criminal Investigative Service

US Army Criminal Investigation Command

Air Force Office of Special Investigations

Small Business Administration, Office of the Inspector General

For Further Information, Contact: Assistant U.S. Attorneys Matthew J. Sutton (619) 546-8941, David J. Rawls (619) 546-7966, and
Blanca Quintero (619) 546-7118

SAN DIEGO – Indictments were unsealed today in San Diego federal court charging 40 members of an international money-laundering scheme with conspiring to launder tens of millions of dollars in drug money.

In addition to the indictments unsealed today in San Diego, a total of 75 defendants nationwide have been charged across the United States with crimes ranging from drug distribution to money laundering, all stemming from this investigation, including defendants in the Southern District of Ohio, the Eastern District of Kentucky, the District of Kansas, and the Eastern District of Washington.

According to the indictments and other publicly filed court documents, Jose Roberto Lopez-Albarran, a significant money broker for a Mexican-based international money laundering organization, along with other members of the organization, allegedly laundered tens of millions of dollars in narcotics proceeds from the United States to Mexico between 2015 and 2018. As a result of the investigation, law enforcement seized more than $6 million dollars in United States currency as well as 95 kilograms of methamphetamine, 63 kilograms of heroin, 10 kilograms of fentanyl, 92 kilograms of cocaine, 252 kilograms of marijuana, worth millions of dollars on the streets, and 20 firearms, including semiautomatic assault rifles and handguns. 

Lopez-Albarran oversaw a network of co-conspirators to assist in transferring millions of dollars in narcotics proceeds from drug dealers in the United States to drug suppliers in Mexico, including to individuals working for the Sinaloa Cartel. As part of the investigation, the FBI deployed undercover agents and task force officers from the San Diego District Attorney’s Office, Bureau of Investigation, Chula Vista Police Department, and the San Diego County Sheriff’s Office to infiltrate Lopez-Albarran’s organization and after gaining the trust of the organization, agreed to pick up bulk currency across the United States for transfer to Mexico. Over the course of the last two years, undercover agents identified multiple individuals known as “money movers,” i.e., people responsible for collecting narcotics proceeds and disposing of those proceeds as directed by either the drug trafficking organization or the money brokers.

Law enforcement then received phone numbers and code words from Lopez-Albarran to contact these money movers to arrange for the delivery of narcotics proceeds. The money movers concealed and transported amounts ranging from thousands to hundreds of thousands of dollars in narcotics proceeds at a time, hidden within compartments in vehicles, luggage, duffel bags and shoeboxes. These cash deliveries took place in locations such as parking lots of retail stores, hotels, and restaurants across the United States, including ones in San Diego, California; Los Angeles, California; Kansas City, Missouri; New York, New York; Cincinnati, Ohio; Dayton, Ohio; Lexington, Kentucky; Boston, Massachusetts; Philadelphia, Pennsylvania; and Chicago, Illinois. By targeting these money movers, law enforcement was able to discover multiple drug trafficking cells across the United States responsible for importing and distributing substantial quantities of fentanyl, heroin, methamphetamine and cocaine.

 In addition, another lead defendant, Manuel Reynoso Garcia, along with his co-conspirators were charged last month in San Diego federal court for their sophisticated money laundering activities. He and his co-conspirators directed money movers to travel throughout the East Coast to collect bulk cash and deposit the bulk cash into domestic bank accounts set up through a web of “funnel” bank accounts. Once the bulk cash was deposited into the funnel bank accounts, co-conspirators, under the direction of Reynoso and others, conducted international wire transfers of the funds to Mexican bank accounts associated with false companies in Mexico controlled by the money laundering organization.

Lopez-Albarran was arrested on February 9, 2018 in San Diego and remains in federal custody. Reynoso and four of his co-defendants were also arrested between January 11, 2018, and January 17, 2018, in San Diego. Sixteen of the remaining defendants charged in San Diego have been arrested in Boston, Massachusetts; Los Angeles, California; Philadelphia, Pennsylvania; and elsewhere. Five additional defendants were already in custody for previously charged crimes and will be transferred to the Southern District of California to be arraigned in the coming days.

In addition, approximately 35 other defendants have been charged in connection with this investigation in other jurisdictions including the Southern District of Ohio, the Eastern District of Kentucky, the District of Kansas, and the Eastern District of Washington.

“We have siphoned the cash and the life out of a San Diego-based international money laundering organization with ties to the Sinaloa Cartel,” said U.S. Attorney Adam Braverman. “By following the money, we have discovered large quantities of fentanyl, heroin and methamphetamine that are no longer destined for the streets of America. That’s a one-two punch that takes these organizations completely out of the ring and makes our communities safer.”

“These types of complex investigations, spanning across the nation and our international boundaries, requires a fundamental change in how we share information, coordinate and collaborate.   These joint investigations, where shared awareness and decentralized execution was the norm, can and must be how we disrupt these drug trafficking and money laundering networks in the future,” said Special Agent in Charge John A. Brown of the San Diego Division of the Federal Bureau of Investigation.  “This case model is built upon the incredible collaboration of the federal, state, and local partners across the United States and in Mexico.  Today, this case exemplifies how dedicated collaboration equals success.”

“Taking on and stopping transnational criminal organizations requires dedication and sacrifice,” said District Attorney Summer Stephan. “We worked collaboratively with our law enforcement partners and dedicated key resources over a two-year period.  As a result, this undercover operation has brought down high-level cartel associates and stopped the distribution of dangerous drugs like heroin and fentanyl in San Diego and cities across the U.S.”

“When drug traffickers amass large quantities of cash from narcotics sales, they often attempt to transfer and/or legitimize these ill-gotten profits through the use of banks and financial institutions,” said Special Agent in Charge R. Damon Rowe, IRS-Criminal Investigation.  “This joint investigation continues to demonstrate our efforts to ensure that the financial services industry will not be abused by large-scale narcotics traffickers, but will be operated in a fair and honest manner to promote the public interest.”

U.S. Attorney Braverman also praised federal, state, and local law enforcement for the coordinated team effort in the culmination of this investigation. This case was led by the Federal Bureau of Investigation’s Cross Border Violence Task Force (CBVTF). The CBVTF is a FBI-led task force comprised of federal and local law enforcement from the FBI, San Diego District Attorney’s Office Bureau of Investigation, Drug Enforcement Administration, Customs and Border Protection, San Diego County Sheriff’s Office and the Chula Vista Police Department. Agents and officers from the IRS Criminal Investigation, U.S. Bureau of Prisons, U.S. Marshals Service and the California Highway Patrol also provided vital assistance. Attorneys from the Department of Justice, Office of Enforcement Operations, Electronic Surveillance Unit, likewise provided critical work as part of the investigative team. He also thanked our vital foreign partners - Mexican Federal Police, Mexico’s Procuraduria General de la Republic (PGR) and Mexican Financial Intelligence Agency (Unidad de Inteligencia Financial - UIF).

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

The United States is represented in court by Assistant U.S. Attorneys Matthew J. Sutton, David J. Rawls, and Blanca Quintero.

Defendant Information

Defendants                                                              Criminal Case No: 18-cr-1129-GPC

Defendant Number

Name

Age

Hometown

1

Jose Roberto Lopez-Albarran

32

Culiacan, Mexico

2

Alfredo Cardenas-Uriarte

55

Culiacan, Mexico

3

Juan Duarte-Tello

53

Kansas City, Missouri

4

Diana Aurora Holguin-Gallegos

30

Kansas City, Missouri

5

REDACTED

X

REDACTED

6

Shontail Marie Hocker

42

Lexington, Kentucky

7

Nereida Valdez

30

Los Angeles, California

8

REDACTED

X

REDACTED

9

REDACTED

X

REDACTED

10

REDACTED

X

REDACTED

11

Jose Luis Fuentes

37

Los Angeles, California

12

REDACTED

X

REDACTED

13

Miguel Angel Flores

36

Los Angeles, California

14

REDACTED

X

REDACTED

15

Endy Santiago

29

Boston, Massachusetts

16

Luis Sanchez Baez

30

Boston, Massachusetts

17

REDACTED

X

REDACTED

18

Hendry Mateo

39

Boston, Massachusetts

19

REDACTED

X

REDACTED

20

REDACTED

X

REDACTED

21

REDACTED

X

REDACTED

22

REDACTED

X

REDACTED

23

Christian Brown

41

Boston, Massachusetts

24

Jose Figueroa

38

Boston, Massachusetts

25

Alfredin Mejia Soto

29

Boston, Massachusetts

Summary Of Charges

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

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.

Defendants                                                                          Criminal Case No: 18-cr-1127-GPC

Defendant Number

Name

Age

Hometown

1

Jesus Adolfo Rene Duarte Languren

35

Los Angeles, California

2

Manuel Vasquez Medina

44

Los Angeles, California

3

REDACTED

X

REDACTED

4

Manuel Dejesus Estrada

28

Los Angeles, California

5

REDACTED

X

REDACTED

Summary Of Charges

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

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

Maximum Penalties: Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10,000,000 fine and 5 years supervised release. For money laundering charges, term of custody up to 20 years’ imprisonment, a fine of $500,000 or twice the value of the monetary instrument or funds involved, and 5 years of supervised release.

Defendants                                                  Criminal Case No: 18-cr-1128-GPC

Defendant Number

Name

Age

Hometown

1

Jose Roberto Lopez-Albarran

32

Culiacan, Mexico

2

REDACTED

X

REDACTED

3

REDACTED

X

REDACTED

4

REDACTED

X

REDACTED

Summary Of Charges

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

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.

Defendants                                                  Criminal Case No: 17-cr-02203-WQH

Defendant Number

Name

Age

Hometown

1

Manuel Reynoso Garcia

62

Tijuana, Mexico

2

Perla Alejandra Perez Guirado

25

Tijuana, Mexico

3

Estefania Plascencia Ponce

35

Tijuana, Mexico

4

Joaquin Enrique Ramirez Calva

28

Tijuana, Mexico

5

Gilberto Beltran Salazar

29

Tijuana, Mexico

Summary of Charges

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

Conspiracy to Operate 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.  For conspiracy to operate an unlicensed money transmitting business, term of custody up to 5 years’ imprisonment and a fine of $250,000.

*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.

AGENCIES

Federal Bureau of Investigation – Cross Border Violence Task Force

San Diego District Attorney’s Office - Bureau of Investigation

San Diego County Sheriff’s Office

Chula Vista Police Department

Drug Enforcement Administration

Customs and Border Protection

Internal Revenue Service - Criminal Investigation

United States Marshals Service

U.S. Bureau of Prisons

California Highway Patrol

Department of Justice, Organized Crime Drug Enforcement Task Forces

Department of Justice, Office of Enforcement Operations

Department of Justice, Office of International Affairs

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

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

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

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

U.S. Attorney’s Office for the Northern District of Illinois

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

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

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

Mexican Federal Police

Mexico’s Procuraduria General de la Republic (PGR)

Mexican Financial Intelligence Agency (Unidad de Inteligencia Financial - UIF)

Assistant U. S. Attorney Michael J. Heyman    

NEWS RELEASE SUMMARY – March 5, 2018

SAN DIEGO – U.S. Border Patrol Agent Ramon Delgado was indicted by a federal grand jury for making false statements during a pre-employment interview and in his application about his associations with known members of a drug trafficking organization.

According to the indictment unsealed today, federal officials began investigating allegations that Delgado associated with and aided a drug trafficking organization that smuggled methamphetamine, heroin and cocaine into the United States.  That drug trafficking organization included United States citizens and Mexican nationals, including two Mexican nationals with whom Delgado maintained a close and extensive relationship. The indictment alleges that Delgado lied about his relationships to these individuals in both his background investigation for federal employment and during an interview with federal agents.

Delgado made his first appearance in federal court today before U.S. Magistrate Judge Nita L. Stormes, who ordered Delgado to appear for a detention hearing on March 8, 2018.

“Any connections to drug traffickers is an obvious red flag, and concealing that connection is even more troubling,” said U.S. Attorney Adam Braverman. “U.S. Border Patrol Agents are trusted guardians of public safety and national security. We will go after any who fall short of this high standard, rare though it may be.”

“I was very disappointed to learn about these allegations when they surfaced,” said Chief Patrol Agent Rodney S. Scott.  “As with any allegation of misconduct, U.S. Border Patrol has supported the investigators throughout the investigative process and will continue to do so as this case now moves into the prosecution phase.  Integrity is a core value of all U.S. Border Patrol agents.  You simply cannot be an agent without it.  It is imperative to point out that while this is extremely disappointing, it is an anomaly.  The vast majority of U.S. Border Patrol agents carry out their duties every single day with integrity, vigilance, and honor.”

FBI Special Agent in Charge John A. Brown commented, “Keeping our border safe is a serious and complex task.  As part of this mission, the San Diego FBI Border Corruption Task Force, along with the Department of Homeland Security – Office of Inspector General, are determined to uphold the public’s confidence in our border security by ensuring the highest standard of those employees charged with protecting the American people at our nation's borders.”

According to the indictment, on October 23, 2015, Delgado submitted his responses to the standard background investigation questions required for federal agents.  One of those questions asked whether, in the prior seven years, Delgado had a close and continuing contact with any foreign nationals with whom he was bound by affection, influence, common interests and obligation.  Delgado stated that he had no such relationships when, in truth, he had a close and continuing relationship with two Mexican nationals who were members of a drug trafficking organization.

The indictment also alleges that on July 27, 2016, federal agents asked Delgado during an interview whether he knew the members of the drug trafficking organization and Delgado falsely claimed that he did not.

DEFENDANT                                               Case Number 18CR1005-LAB                               

Ramon Delgado                                              Age: 44                                   San Diego, CA

SUMMARY OF CHARGES

False Statements – 18 U.S.C. § 1001

Penalty:  5 years’ maximum imprisonment per count

AGENCIES

Federal Bureau of Investigation

Department of Homeland Security, Office of Inspector General

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

Assistant U. S. Attorney Timothy Coughlin (619) 546-6768, Special Assistant U.S. Attorney Thomas Endicott, Captain, U.S. Marine Corps (619) 546-8664

NEWS RELEASE SUMMARY – March 2, 2018

SAN DIEGO – A 25-year-old Marine Corporal was found unresponsive on the floor in his Camp Pendleton barracks on Sunday, January 29, 2017. He was lying next to his computer chair, still wearing headphones. He appeared to have been playing video games. Paramedics were unable to revive him.

What followed was an autopsy report that determined the cause of death to be fentanyl toxicity, and a death investigation that has resulted in federal charges against the alleged dealer, 25-year-old Kyle Anthony Shephard of San Marcos.

In a complaint unsealed today, Shephard is charged with Distribution of Fentanyl Resulting in the Death of the Marine, identified in court documents only as Corporal M.C., 1st Marine Division. Shephard was arraigned before U.S. Magistrate Judge, Mitchell D. Dembin today at 2:00 p.m.  He is scheduled to appear for a detention hearing on Tuesday, March 6, 2018 at 1:30 p.m., also before Judge Dembin.

The last known contacts with Corporal M.C. occurred late Friday night, January 26, 2017, two days before his death, and shortly after midnight on Saturday morning. A forensic examination of Corporal M.C.’s computer showed his last computer activity taking place at 1:44 a.m. on January 28, 2017. 

On February 1, 2017, an autopsy was conducted at the Naval Medical Center San Diego.  The toxicology screen was positive for fentanyl.  Colonel Ladd Tremaine, M.D., Medical Corps, U.S. Army, Armed Forces Medical Examiner, determined that Corporal M.C. died of opioid toxicity caused by a fentanyl overdose.

On April 28, 2017 a forensic chemist with the Defense Forensic Science Center, reported that a blue pill seized from Corporal M.C.’s barracks room tested positive for fentanyl. The pill was discovered on the headboard next to a powdery substance and a rolled up dollar bill.   

A complaint alleges that Shephard distributed the fentanyl pills to Corporal M.C. which caused his death.  Text messages obtained from Corporal M.C.’s phone revealed he was first introduced to Shephard in November 2016.  During the next three months – November – December 2016 and January 2017 – they arranged numerous sales of fentanyl and other drugs.  Their conversations included Shephard acknowledging that the pills could lead to an overdose.

Their drug-based relationship culminated on Friday January 27, 2017, when Shephard sold four fentanyl pills to Corporal M.C. for one hundred dollars.  The contents of that text message are included below:

Corporal M.C. – 6:14 PM – Yo whats good bro.

Shephard – 6:15 PM – What’s good?

Corporal M.C. – 6:17 PM – Can u meet up in a lil bit?

Shephard – 6:20 PM – Yes come to esco

Corporal M.C. – 6:21 PM – Do u have the fetanyl ones or the other ones

Shephard – 6:22 PM – I have both but new fet prices are 25 the others are 20 I lost a Plug and had my prices raised significantly with the fet ones

Corporal M.C. – 6:34 PM – Any deals

Corporal M.C. – 6:41 PM – And where do u wanna meet

Shephard – 6:41 PM – If you get quite a bit

Corporal M.C. – 6:44 PM – Kk ill take 4 for a hundo

Corporal M.C. – 6:53 PM – Im omw

Shephard – 6:57 PM - Fasho

Corporal M.C. – 7:25 PM – Where we meeting

Shephard – 7:28 PM – My housr

Corporal M.C. – 7:34 PM – Im in here

Shephard – 7:36 PM – Me too

Corporal M.C. – 7:36 PM – Im near the address 336

An investigation of Shephard’s ongoing criminal activity found that on December 12, 2017, Shephard and a female associate were arrested and charged by the San Diego District Attorney’s Office with distribution of a controlled substance. Law enforcement officers involved in the arrest of Shephard said the controlled substance Shephard was charged with possessing for distribution was approximately 2,000 fentanyl-laced pills.

“What a senseless tragedy that another young life has been lost because of fentanyl,” said U.S. Attorney Adam Braverman. “This Marine was serving his country and had his whole life ahead of him. We are going to hold dealers accountable for the deaths that result from their reckless disregard for human life.”

“NCIS and other law enforcement agencies must do whatever we can to address the nation's ongoing opioid crisis by going after those who are dealing death. Busting a dealer tied to the death of a U.S. Marine will hopefully save the lives of other service members,” said NCIS Pendleton Field Office Special Agent in Charge Todd Battaglia.

In another recent case being prosecuted by the U.S. Attorney’s Office, alleged heroin distributor Max Gaffney was arrested in January 2018 and charged with Distribution of Heroin Resulting in Death.  According to an October 2017 indictment, Gaffney distributed heroin on February 16, 2017, which resulted in the death of a person identified only as K.R.  For further information please see Case Number 17cr3330.

While final numbers have not been released, preliminary estimates reflect that deaths caused by fentanyl analogs doubled in San Diego County in 2017 over 2016.

DEFENDANT                                     Case Number 18-mj-0935-MDD                                            

Kyle Anthony Shephard                        Age: 25           

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

AGENCY

United States Naval Criminal Investigative Service Marine Corp

U.S. Army, Armed Forces Medical Examiner

Defense Forensic Science Center

San Diego County Sheriff’s Department

United States Attorney’s Office

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

Special Assistant U.S. Attorney Jeffrey D. Hill (619) 546-7924 and Assistant U.S. Attorney Anne Perry (619) 546-7964

NEWS RELEASE SUMMARY – March 1, 2018

SAN DIEGO – Andres Avelino Anduaga of Tijuana, Mexico, pleaded guilty to theft charges in federal court today, admitting  that he assumed the identity of an American citizen for 37 years to illegally enter the country and steal hundreds of thousands of dollars in federal, state and local government benefits.

During a hearing before U.S. Magistrate Judge Andrew G. Schopler, Anduaga acknowledged that he took the identity of an American citizen in 1980, using the victim’s birth certificate to apply for a Social Security number and later, for disability benefits in his victim’s name.  From 1989 until 2016, Anduaga admitted that he received almost a quarter-million dollars in Supplemental Security Income benefits, and over a hundred thousand dollars in health benefits, in the name of his victim.  Anduaga also admitted that during an interview with federal agents in 2015, he falsely claimed to be living in the United States, as required for an individual receiving Supplemental Security Income benefits, when in fact he was living in Tijuana, Mexico.  Anduaga also admitted to illegally seeking CalFresh / Supplemental Nutrition Assistance (SNAP) benefits from San Diego County by impersonating the same victim, and thereafter fraudulently taking more than $12,000 in additional government benefits.

As a part of his plea, Anduaga admitted that he is not an American citizen, and that he had in fact been deported from the United States on at least two prior occasions under yet another name.  Anduaga admitted that despite his deportations, he was able to travel freely between the United States and Mexico using the United States passport that he had applied for in the name of his victim, using the same birth certificate and fraudulently-obtained Social Security number he used to defraud the government for decades. 

“The programs that this defendant stole from – for decades – provide benefits to America’s most needy,” said U.S. Attorney Adam Braverman. “This prosecution demonstrates the commitment of the United States Attorney’s Office to protecting the integrity of our welfare programs and punishing those who prey on the goodwill of our nation and its taxpayers.”

“The Social Security Administration’s Office of the Inspector General is committed to pursuing those individuals who violate the public trust wherever they may be found,” said Robb Stickley, the Special Agent in Charge of the San Francisco Field Division, which is responsible for Southern California.  “We will continue to uphold the integrity of the Supplemental Security Income program and other federal and state needs-based assistance programs that are a lifeline for so many Americans and their families."

 U.S. Border Patrol Spokesman Michael Scappechio said: “Criminal cases in the border region oftentimes have an immigration nexus. In the spirit of law enforcement collaboration, the U.S. Border Patrol supports local, state and other federal partners in the prosecution of people who violate our nation’s immigration laws.”

As a part of his plea agreement, Anduaga agreed to pay full restitution to the Social Security Administration, the California Department of Health Care Services, and the County of San Diego for the $360,908.85 in government benefits that he fraudulently obtained by his crimes.  Anduaga faces up to 12 years in federal prison and a fine of up to $971,817.70 at his sentencing before U.S. District Judge. John A. Houston on May 29, 2018. 

DEFENDANT                       Case Number 17-cr-4461-JAH          

Andres Avelino Anduaga       Age 66            Tijuana, Mx.

SUMMARY OF CHARGES

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

Maximum penalty: 10 years’ imprisonment, $721,817.70 fine, restitution

Removed Alien Found in United States – Title 8, U.S.C. Section 1326(a)

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

AGENCIES

Social Security Administration’s Office of the Inspector General

United States Border Patrol

United States Customs and Border Protection

California Department of Health Care Services

California Department of Motor Vehicles Investigations Division

Bureau of Public Assistance Investigations, County of San Diego

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

NEWS RELEASE SUMMARY – March 1, 2018

SAN DIEGO – A Chula Vista man pleaded guilty in federal court today to drug crimes, admitting that the fentanyl he distributed led to the accidental non-fatal overdoses of five people in Alpine, some of whom were revived by first responders with Naloxone.

Joel Rodriguez entered his plea before U.S. Magistrate Judge Jan Adler to conspiracy to distribute fentanyl and possession of cocaine with intent to distribute.

In his plea agreement, Rodriguez admitted that he obtained fentanyl from Mexico and then delivered it to another person for distribution in San Diego. Eventually, Rodriguez’s fentanyl led to the accidental overdoses of five individuals in Alpine on or about December 7, 2017.  The victims, who believed that they were using cocaine, ended up in the hospital, including two who had to be treated at the scene with Naloxone – a drug that reverses the depression of the central nervous system and respiratory system caused by opioids.

Rodriguez also admitted that he drove a vehicle containing 55 pounds of cocaine on May 17, 2017 from San Diego County to Riverside County to deliver the bulk cocaine to another person for further distribution.  According to court records, on December 12, 2017, during the course of a San Diego Sheriff's Department narcotics search warrant at Rodriguez’s residence following the overdoses in Alpine, Sheriff’s deputies along with federal agents from Drug Enforcement Administration and Homeland Security Investigations found additional cocaine and fentanyl.

“I am sending the strongest warning possible to anyone who is struggling with drug addiction,” said U.S. Attorney Adam Braverman. “We have seen a dramatic surge in deaths and international trafficking activity related to fentanyl, which is 30-50 times more powerful than heroin and so dangerous that in its purest form, even a tiny amount touching the skin can be deadly. Every time you use drugs, you are playing Russian Roulette.  These people who overdosed thought they were using cocaine. But there’s no way to know. You may think you’re going to get high, but you’re really going to get low, as in six feet under.”

“This was a horrendous crime that resulted in five drug overdoses in one community,” said Sheriff William Gore. “The threat of fentanyl and other drugs being sold in our communities endangers our young people and wreaks havoc in the lives of more than just those who use them.  It is imperative that we continue to proactively investigate and prosecute the individuals who profit from the destruction of others.”

“Rodriguez’s guilty plea serves to remind the public of the serious dangers linked to transnational smuggling activity along the U.S/.Mexico border,” said David Shaw, Special Agent in Charge for Homeland Security Investigations (HSI) in San Diego. “HSI and our law enforcement partners will continue to investigate and bring to justice those involved in the trafficking and distribution of these deadly drugs into our communities.”

“This is exactly the kind of investigation needed in the face of our nation’s current opioid crisis,” said DEA Acting Special Agent in Charge Steve Woodland.  “Targeting the sellers of this poison should send a clear message that San Diego law enforcement will not tolerate these criminals in our communities.”

Sentencing is scheduled for May 21, 2018 at 9:00 a.m. before U.S. District Court Judge Anthony J. Battaglia.

DEFENDANT                                   Criminal Case No.18CR0164AJB

Joel Rodriguez                                    29                    Chula Vista, California

SUMMARY OF CHARGES

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

Maximum penalties:   10 year minimum mandatory; life maximum; fine of $1 million; supervised release of at least 3 years.

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

Maximum penalties:   20 years maximum; fine of $250,000; supervised release of three years.

AGENCIES

San Diego District Attorney’s Office

San Diego Sheriff’s Department

Homeland Security Investigations

U.S. Drug Enforcement Administration

SAN DIEGO – Eleven federal indictments unsealed in San Diego today charge 37 defendants with heroin, methamphetamine and firearms trafficking, in many cases within feet of North County schools.

The crackdown announced today is the latest in a series of efforts by the Department of Justice to turn the tide of the opioid epidemic and reduce the inevitable violent crime that accompanies widespread drug trafficking.

Early this morning, more than 100 members of the North County Regional Gang Task Force, the FBI SWAT team, plus other law enforcement agencies made numerous arrests and, both today and during the course of the investigation, searched more than a dozen locations in Oceanside, Vista, San Marcos, and elsewhere in North County.

As of today at noon, 27 of the 37 defendants are either in federal or state custody. Twenty one were arrested this week, including 18 this morning; the rest were already in custody. Authorities are continuing to search for 10 defendants. Many of the defendants are scheduled to be arraigned before U.S. Magistrate Judge Mitchell D. Dembin at 2:00 p.m. today and tomorrow.

These yearlong investigations involved months of federal wiretaps, dozens of undercover drug and gun buys and extensive surveillance. Many of the defendants are documented members or associates of violent North County street gangs operating out of Encinitas, San Marcos, Oceanside, Vista, Carlsbad, Escondido, and elsewhere. Many of these gang have long-standing ties to the Mexican Mafia. In total, authorities seized heroin, methamphetamine and fentanyl and firearms, including a semi-automatic pistol, revolvers, and a two AR-15 style assault rifles.   

These drugs and guns were being stored and sold in North County neighborhoods, including near Libby Lake Park and across the street from several schools – Jefferson Middle School, Clair W. Burgener Academy, Mission Elementary School, San Marcos High School, and Joli Ann Leichtag Elementary School.

“We have a special resolve to go after gangs that have the audacity to operate on the boundaries of our schools, where children play and learn,” said U.S. Attorney Adam L. Braverman. “The gangs are always on our radar, but when they endanger our most precious and vulnerable population – our children - we will act decisively.”

Through one investigation, the gang task force targeted major heroin and methamphetamine distribution cells led by North County street gang members. This investigation was initiated in the fall of 2016 after two gang-related homicides in North County. Anticipating additional violence, the gang task force set forth a plan to dismantle gang-related drug trafficking and violence in North County. As part of this investigation, the gang task force targeted Adrian Gomez, aka “Bandit,” a known Carlsbad gang member, methamphetamine distributor, and felon, who was found in possession of ammunition and a semi-automatic pistol.

The gang task force also targeted Theresa Lapolla, who was found in possession of over 100 grams of heroin at her home, located less than 700 feet from three Oceanside schools. She was charged with possession with intent to distribute over 100 grams of heroin within 1000 feet of a school — a charge that doubles the maximum punishment to 80 years in prison.

This investigation also targeted Robert Gonzalez, aka “Sleepy,” a Carlsbad gang member living in Oceanside’s Posole neighborhood. Months of federal wiretaps showed that Gonzalez was a prolific heroin and methamphetamine distributor who controlled drug sales in that neighborhood, which is a Posole territory located off the I-5 freeway and Highway 76 in Oceanside. In fact, Gonzalez sold narcotics every single day of the roughly three-month wiretap on his telephones. Gonzalez did so by working with multiple gang members and associates to distribute drugs to dozens of customers in and around Oceanside. Gonzalez typically met with his customers and sub-distributors in the parking lots of Wal-Mart, Harbor Freight, Mission Donuts, Burger King, El Super, and a local methadone clinic, all within Oceanside. 

Another investigation by the gang task force targeted Encinitas Flats gang member Colin Jones as a high-volume heroin and methamphetamine dealer throughout North County. On June 8, 2017, Jones was arrested after investigators learned through electronic surveillance that he had a loaded AR-style assault rifle in his vehicle. Agents located him at the Pala Indian Casino with the rifle on his front passenger seat and additional ammunition and heroin in the car. Jones is charged with conspiracy to import heroin, conspiracy to distribute methamphetamine and heroin and felon in possession of ammunition.

Jones and his co-conspirators are accused of distributing narcotics in a variety of locations, including near schools. For example, according to court documents, Jones met with a San Marcos gang member at an Albertson’s across the street from San Marcos High School in late April to conduct a narcotics transaction.  At other times, Jones and other co-conspirators operated out of a large private parcel of land directly across from Joli Ann Leichtag Elementary School in Vista.

According to court documents, some of the drugs in these investigations were obtained in Tijuana, Mexico, and then North County Gang members used unsanitary methods to sneak heroin and methamphetamine across the border: They repeatedly smuggled small quantities of narcotics in body cavities, via pedestrian lanes at the San Ysidro and Otay Mesa border crossings. Because of the method the conspirators used to smuggle drugs into the United States, which limited the amount that could be smuggled at a given time, Jones would travel to Mexico approximately every five days to replenish his supply of narcotics.  Between October 7, 2016 and June 4, 2017 (four days before Jones was arrested in this case), Jones crossed from Mexico into the United States approximately 38 times, with the most recent being on June 4, 2017.  Jones typically crossed late at night via the pedestrian lanes.

“The FBI and our law enforcement partners at the North County Regional Gang Task Force won’t accept when gang activity coupled with drugs, firearms and violence infests our communities,” said FBI Special Agent in Charge John A. Brown.  “The FBI will continue to pursue violent gang members and work tirelessly with our law enforcement partners to keep our communities safe.”

“The Oceanside Police Department supports the efforts of the San Diego County Gang Task Force, Federal Bureau of Investigation and the U.S. Attorney’s Office in identifying, arresting and prosecuting those that sell and distribute drugs and advocate violence,” said Oceanside Police Chief Frank McCoy.

“This investigation illustrates that these violent street gangs will not prosper in our communities”, says DEA San Diego Acting Special Agent in Charge Steve Woodland.  “With the cooperation of all law enforcement agencies involved, these offenders are now off the streets.”

U.S. Attorney Braverman praised the task force for the coordinated team effort in the culmination of this investigation. Agents and officers from the Federal Bureau of Investigation, San Diego County Sheriff’s Office, Oceanside Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, the California Department of Corrections and Rehabilitation, Bureau of Prisons, Homeland Security Investigations, U.S. Marshals Service, California Highway Patrol, and the Escondido and Carlsbad Police Departments collaborated on this investigation. Attorneys from the Department of Justice, Office of Enforcement Operations, Electronic Surveillance Unit, also provided critical assistance to the investigation. 

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

The United States is represented in court by Assistant U.S. Attorneys Kevin Mokhtari, Janaki S. Gandhi and Matthew J. Sutton.

Defendant Information

DEFENDANT                                                                      Criminal Case No: 17CR1791-JLS

Name

Age

Hometown

Colin Kenneth Jones

AKA “Frosty”

29

Vista, CA

SUMMARY OF CHARGES

Felon in Possession of Ammunition (Title 21, U.S.C., Sec. 922(g)(1)); Conspiracy to Distribute Methamphetamine and Heroin (Title 21, U.S.C., Secs. 841(a)(1), 846); Conspiracy to Import Heroin (Title 21, U.S.C, Secs. 952, 960, 963).

Maximum Penalties: For heroin charges: 40 years in prison with a mandatory minimum sentence of 5 years, and a $5 million fine. For methamphetamine charge: life in prison with a mandatory minimum sentence of 10 years, and a $10 million fine.  For firearms charges: 10 years’ in prison, and a $250,000 fine.

DEFENDANTS                                                                   Criminal Case No: 18CR0872-JLS

Name

Age

Hometown

Ikaika Ryan Chung
AKA “Chino”

38

Encinitas, CA

Luis Armando Garcia
AKA “Junior”

35

San Marcos, CA

Lauren Nicole Valenzuela
AKA “Huera”

23

Surprise, AZ

Christopher Tiburski*

39

Escondido, CA

David Alfaro
AKA “Stranger”

23

Encinitas, CA

Edgar Delgadillo
AKA “Big E”

24

Encinitas, CA

David Loera*
AKA “Porky”

37

Encinitas, CA

Ramon Caldera
AKA “Evil”

37

San Marcos, CA

Mark Thomas Reed

39

San Diego, CA

Matthew Wayne Truax

34

Escondido, CA

Megan Renee Brown

32

Encinitas, CA

Melissa Sue Borst

37

Orange County, CA

SUMMARY OF CHARGES

Conspiracy to Distribute Heroin and Methamphetamine (Title 21, U.S.C., Secs. 841(a)(1) and 846); Importation of Heroin (Title 21, U.S.C. Secs. 952 and 960). 

Maximum Penalties: For the conspiracy charge, life in prison with a mandatory minimum sentence of 10 years and a $10 million fine. For the importation of heroin charges, 20 years in prison and a $1 million fine.

DEFENDANTS                                                       Criminal Case No: 18CR0873-JLS

Name

Age

Hometown

Anthony Michele DiGiovanni

34

El Cajon, CA

Kimberly Marie Lawson

34

El Cajon, CA

SUMMARY OF CHARGES

Conspiracy to Import Heroin and Methamphetamine (Title 21, U.S.C., Secs. 952, 960, 963);

Importation of Heroin and Methamphetamine (Title 21, U.S.C., Secs. 952, 960).

Maximum Penalties: For conspiracy charge: life in prison with a mandatory minimum sentence of 10 years and a $10 million fine. For importation charges, one charge carries a maximum 40 years in prison, with a mandatory minimum of 5 years, and $5 million fine; the other two charges carry a maximum 20 years in prison and $1 million fine.

DEFENDANT                                                          Criminal Case No: 18CR0874-JLS

Name

Age

Hometown

John Nicholas Hernandez

AKA “Hitman”

36

Los Angeles, CA

SUMMARY OF CHARGES

Use of a Communication Device in Drug-Trafficking Offense (Title 21, U.S.C., Sect. 843(b))

Maximum Penalties: 4 years in prison, $250,000 fine

DEFENDANT                                                          Criminal Case No: 18CR1006-JAH

Name

Age

Hometown

Marco Antonio Flores

AKA “Tripps”

38

Oceanside

SUMMARY OF CHARGES

Distribution of Heroin, in violation of Title 21, U.S.C., Sec. 841(a)(1).

Maximum Penalties: 20 years in prison and a $1 million fine.

DEFENDANT                                                          Criminal Case No: 18CR1007-JAH

Name

Age

Hometown

Adrian Gomez

AKA “Bandit”

42

Oceanside

SUMMARY OF CHARGES

Felon in Possession of Ammunition and Firearm, in violation of Title 18, U.S.C., Sec. 922(g).

Maximum Penalties: 10 years in prison and a $250,000 fine.

DEFENDANTS                                                       Criminal Case No: 18CR1008-JAH

Name

Age

Hometown

Robert Gonzalez

AKA “Sleepy”

41

Oceanside

Luis Campos

AKA “Monster”

45

Oceanside

Daniel Santiago-Martinez

AKA “Tiny”

26

Oceanside

Martin Rodriguez

AKA “Osama”

30

Oceanside

Sergio Caro

AKA “Soldier”

41

Carlsbad

Raul Lopez

AKA “Lalo,” aka “Speedy”

38

Oceanside

Francisco Arzola

AKA “Spanky”

50

Oceanside

Irma Urena

41

Oceanside

Mario Alcantar

39

Oceanside

SUMMARY OF CHARGES

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

Maximum Penalties: 40 years in prison with a mandatory minimum sentence of 5 years and a $5 million dollar fine.

DEFENDANT                                                          Criminal Case No: 18CR1009-JAH

Name

Age

Hometown

Cesar Herrera

AKA “Froggy”

56

Oceanside

SUMMARY OF CHARGES

Distribution of Heroin, in violation of Title 21, U.S.C., Sec. 841(a)(1).

Maximum Penalties: 20 years in prison and a $1 million fine.

DEFENDANT                                                          Criminal Case No: 18CR1010-JAH

Name

Age

Hometown

Theresa Lapolla

52

Oceanside

SUMMARY OF CHARGES

Possession with Intent to Distribute Heroin Within 1000 Feet of a School, in violation of Title 21, U.S.C., Secs. 841(a)(1) and 860.

Maximum Penalties: 80 years in prison with a mandatory minimum sentence of 5 years and a $10 million fine.

DEFENDANT                                                          Criminal Case No: 18CR1011-JAH

Name

Age

Hometown

Amando Carrasco Martinez

AKA “Cowboy”

34

Vista

SUMMARY OF CHARGES

Distribution of Methamphetamine, in violation of Title 21, U.S.C., Sec. 841(a)(1).

Maximum Penalties: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.

DEFENDANTS                                                       Criminal Case No: 18CR1012-JAH

Name

Age

Hometown

Benjamin Martinez

AKA “Knuckles”

24

Oceanside

Miguel Silva

AKA “Mikey”

23

Oceanside

SUMMARY OF CHARGES

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

Distribution of Methamphetamine, in violation of Title 21, U.S.C., Sec. 841(a)(1).

Maximum Penalties: Life in prison with a mandatory minimum sentence of 10 years and a $10 million fine.

 DEFENDANT                                                         Criminal Case No: 18CR1013-JAH

Name

Age

Hometown

Ray Soto

56

Oceanside

SUMMARY OF CHARGES

Distribution of Methamphetamine, in violation of Title 21, U.S.C., Sec. 841(a)(1).

Maximum Penalties: 40 years in prison with a mandatory minimum sentence of 5 years and a $5 million fine.

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

AGENCIES

North County Regional Gang Task Force, which includes the Federal Bureau of Investigation, San Diego County Sheriff’s Office, Oceanside Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration, the California Department of Corrections and Rehabilitation, Bureau of Prisons, Homeland Security Investigations, U.S. Marshals Service, California Highway Patrol, and the Escondido and Carlsbad Police Departments.

Assistant U. S. Attorney Renee Green (619) 546-6775    

NEWS RELEASE SUMMARY – February 13, 2018

SAN DIEGO – Christian Clews, the operator of a Carmel Valley horse ranch, was sentenced in federal court today to 210 months in prison for possessing and distributing photographs and videos that depicted children engaged in sexually explicit activity with adults and dogs.

Clews, who pleaded guilty in July but remained free on bond, was immediately taken into custody at the conclusion of the hearing. U.S. District Judge Dana M. Sabraw also sentenced Clews to 25 years of supervised release upon completion of his prison term.

During today’s hearing, Special Assistant U.S. Attorney Renee Green told the court that during a search of the defendant’s computer, federal agents recovered over 800 images and 600 videos of children engaged in sexually explicit conduct.  As detailed in the plea agreement, the images and videos included prepubescent boys and girls engaged in a variety of sexual acts.  SAUSA Green said Clews’ conduct was not limited to only possession and distribution of child pornography but included repeated sexual victimization of minors for over two decades. SAUSA Green noted that the victims were intimidated for years and finally found the strength to come forward and talk to law enforcement about Clews.   

Judge Sabraw described the case as “extraordinary” because Clews’ pattern of activity involved the abuse and exploitation of minors over the course of 25 years. The Court noted that individuals writing letters of support for Clews were likely “not informed” as to Clews’ true conduct in this case. The Court described Clews as having “another side that’s very dark, very predatory, plain and simple.” Judge Sabraw described Clews’ behavior as a “longstanding campaign of predatory conduct,” wherein Clews used his position at the ranch to abuse vulnerable victims. In pronouncing his judgment, Judge Sabraw stated, “There has to be a consequence to that conduct; there has to be a day of accounting.”

“The production of child pornography creates a permanent record of a child’s sexual abuse, and these victims often suffer a lifetime of re-victimization in knowing the images of their worst nightmare are forever memorialized on the Internet,” said U.S. Attorney Adam L. Braverman. “We are heartened by today’s strong sentence because it ensures that a man who contributed to the victimization of children is out of commission for many years.”

“Today’s sentencing of Christian Clews sends a very strong message to child predators who seek to exploit young victims. HSI is committed to working with the San Diego Internet Crimes Against Children Task Force and federal prosecutors to protect children from sexual predators. Investigating these crimes requires a local, national and international commitment and a multi-agency approach of dedicated law enforcement personnel,” said James Plitt, Deputy Special Agent in Charge of Homeland Security Investigations (HSI) in San Diego. “HSI will continue to assist our law enforcement partners, in particular bringing our transnational investigative authorities to these investigations and prosecutions.”

This case was investigated by the San Diego Internet Crimes Against Children Task Force and Homeland Security Investigations. The Internet Crimes Against Children Task Force Program 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.

DEFENDANT                                               Criminal Case No. 17CR0145-DMS

Christian Clews          Age: 52                      San Diego, CA

SUMMARY OF CHARGE

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

Title 18, United States Code, Section 2252(a)(4), Possession of Images of Minors Engaged in                   Sexually Explicit Conduct

Maximum penalties: 20 years in prison (with a mandatory 5 years’ prison for the Distribution count); $250,000 fine; Mandatory Special Assessments of $100 and $5,000 per count; Restitution; Forfeiture

INVESTIGATING AGENCIES

San Diego Internet Crimes Against Children Task Force

Homeland Security Investigations

Assistant U. S. Attorneys Emily Allen (619) 546-9738 and Benjamin Katz (619) 546-9604

NEWS RELEASE SUMMARY – February 12, 2018

SAN DIEGO – Jared Palmer, a former facilities manager for the San Diego Workforce Partnership, was sentenced to 30 months in prison today for embezzling more than $450,000 from the local Workforce Development Board that provides job training and placement to San Diego county residents and employers.

U.S. District Court Judge Larry A. Burns also ordered Palmer to pay $455,606.82 in restitution to the Partnership (SDWP).

According to court records, Palmer, as facilities manager, was responsible for approving payment of invoices submitted by janitorial companies contracted to clean SDWP’s facilities.  Between 2011 and 2016, Palmer instructed these contractors to purchase items that he claimed were for SDWP’s use, including Nest Smart Thermostats, electronics, and pre-paid debit cards.  Palmer then stole the items and replaced the hundreds of invoices that included the cost of these stolen items with false invoices that made it appear as if all of the charges were for legitimate janitorial services. Over the course of five years, Palmer’s scheme netted him at least $455,606.

Because SDWP is a Workforce Development Board funded largely by federal grant dollars, Palmer was convicted of Theft of Federal Program Funds, in violation of 18 U.S.C. § 666. 

At sentencing, Judge Burns noted that Palmer’s theft consisted of “hundreds of discrete thefts that would have kept going if not discovered.”  Judge Burns noted that Palmer conducted the theft with “great stealth, and great planning” and that the theft had “egregious consequences, not only for [SDWP] but also for the people it assists.”

“This organization does important work that provides job training, placement, and services to thousands of San Diegans every year,” said U.S. Attorney Adam Braverman. “This sentence shows that those who attempt to steal taxpayer dollars intended for worthy causes like this one will be brought to justice.”

“Federal grant dollars were stolen from the San Diego Workforce Partnership by Mr. Palmer, a trusted manager at this non-profit organization,” said FBI Special Agent in Charge John A. Brown.  “The FBI will continue to expose and bring criminals to justice who attempt to line their pockets at the expense of federally funded programs intended to benefit our community.”

DEFENDANT                                   Case Number: 17-cr-2157-LAB

Jared Palmer                                         Age:    42

SUMMARY OF CHARGES                                                                

Theft of Federal Program Funds, 18 U.S.C. § 666

Maximum penalty: 10 years’ imprisonment, fine double amount obtained, 3 years’ supervised release.

AGENCIES

Federal Bureau of Investigation – San Diego Field Office

U.S. Department of Labor – Office of Inspector General