Southern District of California

SAN DIEGO – Elizabeth Ugarte Rios of Vista was sentenced in federal court today to 41 months in prison for striking and critically injuring a 71-year-old cyclist while transporting undocumented immigrants in her vehicle.

According to court documents, on August 4, 2024, Rios drove to Otay Lakes County Park with her minor daughter as a passenger and picked up a group of undocumented aliens who had earlier scaled a fence at the U.S.-Mexico border.

The crash occurred minutes later on Wueste Road, a two-lane highway in Chula Vista. According to the government’s sentencing memo, the defendant was travelling at 67 mph – almost twice the posted speed limit - when she swerved across the double-yellow line to pass another vehicle. A uniformed Border Patrol agent was following in an unmarked vehicle.

Rios hit the brakes four seconds before the collision, striking the cyclist at a speed of approximately 30 miles per hour. One witness said the cyclist flew approximately 10 feet in the air and landed on the side of the road.

The cyclist, Robert Hilborn, attended today’s sentencing hearing with his wife, Sharon, and two adult sons. Sharon Hilborn read statements on behalf of the family. She said her husband was hospitalized for 68 days and suffered several strokes. He was on a ventilator for many days and suffered lacerations to his head, neck, and stomach plus orthopedic injuries and deep lacerations to his legs.

Sharon Hilborn told the court her husband used to ride his bike 80-100 miles per week, and being fit and active was a major source of his joy. Their lives are now dominated by going to medical appointments and therapy sessions. Members in the court gallery were audibly crying as Sharon Hilborn spoke about how her family has been impacted by this event.

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

DEFENDANT                                               Case Number 24cr01772-RBM                               

Elizabeth Ugarte Rios                                     Age: 38                                   Vista, CA

SUMMARY OF CHARGES

Transportation of Certain Aliens During and in Relation to Which the Person Causes Serious Bodily Injury to, or Places in Jeopardy the Life of, Any Person – Title 8, U.S.C., Section 1324(a)(1)(A)(ii) and (a)(1)(B)(iii)

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

INVESTIGATING AGENCY

United States Border Patrol

SAN DIEGO – Naim Lajud Libien was arrested and charged with smuggling 12 protected Orange Fronted Parakeets into the U.S. stuffed inside the boots he was wearing and inside a seat compartment in his car. At least two of the birds died, and a third appeared to have a broken neck.

Lajud Libien, a citizen of Mexico, attempted to cross the border in his vehicle after presenting a Border Crossing Card at the Otay Mesa Port of Entry on April 29 at 3:10 p.m. He was diverted to secondary inspection. Once he stepped outside of his 2017 Jeep Grand Cherokee, the Customs and Border Protection officer noticed bulges around his ankles. For safety reasons, the officer conducted a pat down and discovered what appeared to be birds wrapped in nylon stockings concealed inside the boots.

A CBP Agricultural Specialist responded to the security office and removed six birds from the defendant’s boots – three in the right, three in the left, all tied at the feet and wrapped in panty hose. The birds were later identified by a U.S. Fish and Wildlife Service inspector as Orange Fronted Parakeets (Eupsittula canicularis). The birds were placed in a bird cage with food and water until they could be cared for by Veterinary Services. Some of the birds appeared to have injuries on their feet where they were tied.

“Smuggling at the border takes many forms, but the tragic impact on animals forced into such perilous conditions is deeply troubling,” said U.S. Attorney Adam Gordon. “We are committed to holding accountable those who endanger wildlife and public health through these reckless and inhumane smuggling practices.”

Lajud Libien was taken into custody on April 29, 2025.  On April 30, 2025, CBP personnel could hear birds crying from his impounded vehicle. CBP officers and a U.S. Fish and Wildlife Inspector began a dismantling the car in search of the birds. Six more orange parakeets were found inside the seat cushion of the passenger seat of the vehicle. The birds were wrapped in panty hose and bound. Two of the birds were dead when they were discovered. One of the birds appears to have a broken neck. Three of the birds were still alive; however, in poor health.

Orange Fronted Parakeets (Eupsittula canicularis) are native to Western Mexico and Costa Rica. The Orange Fronted Parakeet is protected and has been listed on Appendix II of the Convention on International Trade in Endangered Species (CITES) since 2005. Libien’s concealment of the parakeets would have resulted in their entering the United States without any quarantine period or process.

To import many types of wildlife, the wildlife must be subject to quarantine before it can be introduced into the United States. Many animals have diseases that can be transferred to humans (zoonotic diseases) or other animals that can have disastrous health effects to human or animal populations. For example, birds can carry and spread Avian influenza (bird flu), psittacosis, and histoplasmos. Bird flu is highly contagious and can cause flu like symptoms, respiratory illness, pneumonia and death in humans and other birds including the United States poultry farms. There are many other diseases that can be transmitted from different animals and have disastrous effects, that is why it is necessary to quarantine animals entering the United States to limit and safeguard against this potential disease transmission.

This case is being prosecuted by Assistant U.S. Attorney Emily Allen and and Elizabet Brown.

DEFENDANT                                               Case Number 25-mj-02213                                     

Naim Lajud Libien                                         Age: 54                       Mexico

SUMMARY OF CHARGES

Importation Contrary to Law – 18 U.S.C. § 545

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

INVESTIGATING AGENCIES

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

Homeland Security Investigations

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

SAN DIEGO – The U.S. Attorney’s Office, San Diego City Attorney’s Office and Olé Foundation for the University of San Diego today launched a social media campaign featuring members of USD’s women’s volleyball team to promote fentanyl awareness and overdose prevention. The campaign coincides with the fourth annual National Fentanyl Awareness Day on April 29.

The goal of this joint effort is to raise awareness of the dangers of fentanyl, to reduce accidental use or overdose, and in the event of an overdose, to educate students on how to save lives in an emergency.

“These student athletes are terrific ambassadors for the messages of fentanyl awareness and prevention,” said U.S. Attorney Adam Gordon, “We are making progress every day in preventing accidental fentanyl poisonings, and we are grateful for such committed partners like the City Attorney’s Office and the University of San Diego knowing that their actions will help save lives.”

“Fentanyl continues to claim lives across our communities, and awareness is one of the most powerful tools we have to fight back,” said City Attorney Heather Ferbert. “We’re proud to partner with the Department of Justice and the University of San Diego’s student athletes to share life-saving information. By working together, we can help prevent tragedy and protect our community”.

The student athletes are showcased in a video filmed at various locations on USD’s campus, each reciting a line about the dangers of fentanyl, recognizing the signs of an overdose, and the importance of naloxone (also known by the brand name Narcan).

Naloxone is an opioid overdose reversal medication, available either as a nasal spray or an injector. Many pharmacies carry naloxone. In California, you can get naloxone from a pharmacist without a prescription. It is also possible to get naloxone from community-based distribution programs, local public health groups, or local health departments, free of charge. For more information about naloxone and how to get training on using it, visit: Naloxone Information.

In the public service announcements, the student athletes state the following:

Winning at the Division One level takes a lot of skill, a team committed to excellence, and maybe a little luck.

Because I know some of us have our superstitions

I must have this meal before every game

I always put my left shoe on before my right shoe

But the one thing I will not do is try my luck with a pill that I didn’t get at a pharmacy

That’s because what you might think are common medicines like Adderall, Xanax, or Percocet

Could contain a deadly amount of fentanyl

Taking drugs is a risk that we just won’t take.

Fentanyl doesn’t care about the win or the loss. It doesn’t care about your age. It doesn’t care about your family, teammates, or friends. It doesn’t care if you get lucky the first time.

As a student athlete, I know I set an example to those around me, on our team and in our community.

Know what Narcan is, and how to use it – or know who to call to get help.

And know what those overdose signs are, like someone you can’t arouse, snoring sounds, shortness of breath, vomiting or turning blue. You have the power to keep our community safe.

We here at USD are all members of the same team.

And safety isn’t about luck, it’s about knowledge and prevention.

Just remember, if you are ever in doubt, call 911.

Let’s take luck out of it

We are teaming up to save lives from fentanyl

Because as a USD Torero, we know it takes a team.

This campaign uses the hashtags #TakesMoreThanLuck #ItTakesATeam. The social media public service announcement can be found here.

The campaign is being deployed over social media platforms, including Instagram, X (formerly Twitter), Snapchat, LinkedIn, and YouTube, by the individual student-athletes, the Department of Justice, the University of San Diego Athletic Department, and other coalition members.

This is the third time that the U.S. Attorney’s Office and the City Attorney’s Office have teamed up to feature student athletes in partnership with an NIL collective. For this social media campaign, the offices partnered with the Olé Foundation at USD, which is dedicated to empowering student-athletes by providing education, resources, and guidance to navigate the evolving landscape of NIL opportunities. The department helps scholar-athletes maximize their personal brand, ensuring they make informed decisions while maintaining integrity and balancing their academic and athletic commitments. Through strategic partnerships, mentorship, and compliance support, the department prepares student-athletes for success in the NIL space and beyond.

The U.S. Attorney’s Office and the City Attorney’s Office have previously partnered with the SDSU women’s soccer team, Aztec Link, the SDSU men’s basketball team and their NIL collective, the MESA Foundation, to create similar public service announcements and media campaigns that at the time were the first such collaborations of their kind. The campaigns have since received over a million impressions.

Additional fentanyl prevention resources can be found at San Diego County’s Community & Parent Toolkits, which are available in both English and Spanish.

The U.S. Attorney’s Office’s participation in the social media campaign with USD’s NIL Department is not an endorsement of any product, service, or enterprise associated with the department.

SAN DIEGO – Manuel Joseph Mariscal, an Old Town National City criminal street gang member known by the moniker “Pony,” was sentenced today in federal court to 120 months in prison. 

In June of 2022, task force officers from the East County Regional Gang Task Force conducted two controlled purchases involving the distribution of methamphetamine, a Ruger Mini Thirty CAL. 7.62 x 39 rifle and several rounds of ammunition from Mariscal. The distribution occurred at Mariscal’s residence located just 852 feet away from Zamorano Elementary School in San Diego.

On June 21, 2023, a state search warrant was executed on Mariscal’s residence, wherein additional methamphetamine, a firearm, ammunition, a firearm silencer, a firearm laser sign with gun mount parts, heroin and a composition book with pay and own information common in the drug trafficking business were discovered. On that date, Mariscal was arrested on the federal charges stemming from the June 2022 controlled purchases.

In addition to the federal charges, Mariscal is currently facing state charges for the additional contraband seized in connection to the search warrant execution on his residence in San Diego County Superior Court, Dkt. No. CD301145, charging Mariscal with child abuse, possession for sale of a controlled substance, possession of a firearm by a possessor of a controlled substance, possession of a firearm by a felon, and a prohibited person owning firearm/ammunition.

Mariscal, a serial offender marking his fourth conviction for being a felon in possession of a firearm, entered a guilty plea on this federal case on September 17, 2024.

This case is being prosecuted by Assistant U.S. Attorney Lyndzie M. Carter.

DEFENDANT                                               Case Number 23cr1470-JLS                            

Manuel Jospeh Mariscal                                 Age: 49                                   San Diego, CA

SUMMARY OF CHARGES

Distribution of Methamphetamine Near a School – Title 21, U.S.C., Sections 841(a)(1) and 860

Maximum penalty: Eighty years in prison and $10 million fine

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

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

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

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

INVESTIGATING AGENCIES

East County Regional Gang Task Force

Federal Bureau of Investigation

San Diego County Sheriff’s Office

National City Police Department

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.

Note: View settlement here.

The Justice Department today announced that it reached an agreement with California towing company Tony’s Auto Center to resolve allegations that it illegally auctioned a deployed Navy Lieutenant’s car, in violation of the Servicemembers Civil Relief Act (SCRA). Under the settlement agreement, U.S. Navy Lieutenant Jonathan Liongson will receive $7,500 in damages. The United States will also receive a $2,000 civil penalty, and Tony’s Auto Center must implement new policies to prevent future violations of the SCRA.

According to the United States’ complaint, in November 2022, before leaving for deployment aboard the USS Bunker Hill, Lieutenant Liongson placed personal items in his 2011 Mazda 6 and parked it at a friend’s house. While he was deployed at sea, Tony’s Auto Center towed the car and, about two months later, sold it at auction without first obtaining a court order, as is required by the SCRA.

“Members of our armed forces should not have to worry about their cars being auctioned off while they are deployed on missions defending our freedoms, liberties, and rights,” said Assistant Attorney General Harmeet K. Dhillon of the Civil Rights Division. “This settlement should send a strong message to other towing companies that they should not take advantage of our servicemembers while they are keeping Americans safe.”

“The SCRA protects the rights of the men and women who serve in our Armed Forces, which allows them to devote their full attention to defending our country,” said U.S. Attorney Adam Gordon for the Southern District of California. “While Lieutenant Liongson was at sea, he understood that his ship’s mission and the duration of their deployment could change at any moment. He accepted that reality in the fulfillment of his solemn oath. In turn, the SCRA provides grace and understanding about certain personal affairs. Lieutenant Liongson’s car should not have been auctioned off in his absence. We hope this settlement encourages all towing companies to review and improve their policies and ensure that the rights of all servicemembers are honored and respected.”

The SCRA is a federal law that provides a variety of financial and housing protections to members of the U.S. military. The law prohibits a towing company from auctioning off a vehicle owned by a servicemember unless it first obtains an order from a court allowing it to do so.

Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at http://legalassistance.law.af.mil/.

The Justice Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the Department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA. Additional information on the Department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.

SAN DIEGO – Tony’s Auto Center, a towing company in Chula Vista, California, has agreed to a settlement to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) when it auctioned a car owned by an active-duty servicemember while he was deployed at sea.

According to the United States’ complaint, U.S. Navy Lieutenant Jonathan Liongson was deployed in November 2022 aboard the USS Bunker Hill. Before leaving for deployment, Lieutenant Liongson had placed personal items in his 2011 Mazda 6 and parked the car at a friend’s house.

While Lieutenant Liongson was at sea, the Chula Vista Police Department impounded the car because of an expired registration, and Tony’s Auto Center towed the car to its facility. About two months later, Tony’s Auto Center, through its agent, sold Lieutenant Liongson’s car at auction without first obtaining a court order authorizing the sale, as is required by the SCRA. In March 2023, the Lieutenant returned home from deployment to find that his car had been towed. He then contacted Tony’s Auto Center and learned that they had sold his car.

The SCRA is a federal law that provides legal and financial protections to military members and their families while they are in military service. One of the SCRA’s protections requires anyone holding a lien on the property of a servicemember to obtain a court order prior to auctioning off, selling or otherwise disposing of that property.

“The SCRA protects the rights of the men and women who serve in our Armed Forces, which allows them to devote their full attention to defending our country,” said U.S. Attorney Adam Gordon. “While Lieutenant Liongson was at sea, he understood that his ship’s mission and the duration of their deployment could change at any moment. He accepted that reality in the fulfillment of his solemn oath. In turn, the SCRA provides grace and understanding about certain personal affairs. Lieutenant Liongson’s car should not have been auctioned off in his absence. We hope this settlement encourages all towing companies to review and improve their policies and ensure that the rights of all servicemembers are honored and respected.”

“Members of our armed forces should not have to worry about their cars being auctioned off while they are deployed on missions defending our freedoms, liberties and rights,” said Assistant Attorney General Harmeet K. Dhillon of the Civil Rights Division. “This settlement should send a strong message to other towing companies that they should not take advantage of our servicemembers while they are keeping Americans safe.”

Under the settlement agreement, Lieutenant Liongson will receive $7,500 in damages. The United States will also receive a $2,000 civil penalty, and Tony’s Auto Center must implement new policies to prevent future violations of the SCRA.

The Civil Rights Division’s Housing and Civil Enforcement Section and the U.S. Attorney’s Office for the Southern District of California jointly handled this case. Since 2011, the Justice Department has obtained more than $481 million in monetary relief for more than 147,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit https://www.justice.gov/servicemembers.

Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at https://legalassistance.law.af.mil/.

This case was handled by Assistant U.S. Attorney Kelly A. Reis.

SAN DIEGO – Sarmad Ghaled Dafar of Houston, Texas was sentenced in federal court today to four months in custody and 180 days home confinement for trafficking six protected baby Mexican Spider Monkeys. He was also ordered to pay $23,501.70 in restitution for the cost of quarantining three of the monkeys at the San Diego Zoo.

According to admissions in his plea agreement, Dafar coordinated the purchases and smuggling of the monkeys across the border; received them in the U.S.; and arranged for their sale on three occasions in June 2022 and August 2023.

The crime was discovered on August 14, 2023, when U.S. Fish and Wildlife Service interdicted three baby Mexican Spider monkeys being smuggled into the United States through the Calexico West Port of Entry by Dafar’s coconspirator. A search of the coconspirator’s phone led to evidence that the monkeys were being smuggled for Dafar. Additional evidence revealed that Dafar had previously arranged to have at least three other baby Mexican spider monkeys smuggled into the United States from Mexico in June 2022 and July 2023.  The fate of those three monkeys remains unknown.

“This crime ripped weeks-old baby monkeys from their mothers, disrupted fragile ecosystems, endangered a vulnerable species, and posed significant public health risks,” said U.S. Attorney Adam Gordon. “This is not merely an economic crime; it is a severe and lasting injury to both wildlife and public safety. Border security is not just about interdicting drugs and preventing illegal entries . It also involves protecting the public from dangerous diseases. U.S. Fish and Wildlife Service contributes to securing our borders and keeping the public safe.”

The defendant was ordered to surrender on or before May 29, 2025.

Baby Mexican spider monkeys continue to nurse throughout their first year and ordinarily are not fully weaned and independent until they turn two. Most baby Mexican spider monkeys will continue to stay close to their mothers until they are approximately four years old.

Dafar’s Facebook messages show that he intentionally sought baby monkeys to make the smuggling process easier. According to the government’s sentencing papers, on August 6, 2023, a Facebook user sent Dafar a news article about U.S. Border Patrol agents who “found sever spider monkeys during a smuggling attempt in Brownsville[, Texas].” Dafar responded, “I see it. He stupid brin[g] to[o] many of[] them and all adults they make a lot noise and they active. Baby’s most be sleeping and small to hide.”

Photos that Dafar sent via Facebook show how young the baby monkeys were.  In June 2022, Dafar sent a Facebook message to a potential customer, J.W.M., that said, “I have monkey coming in 2 week baby monkey…Is a spider monkey… [I’ll] let you know when it is here because they gonna send it to me from California.” In his message to J.W.M., Dafar referred to his below-market price, “Is a spider monkey thos[e] kind go[e]s for 15k and up but I ask 8k.” Along with the message, Dafar attached a photo of the baby monkey under a heat lamp in a cage.  In August 2023, Dafar sent the same customer a photo of two baby Mexican spider monkeys in diapers.  

According to the government’s sentencing memo, the June 2022 photo (right) of what appears to be a baby spider monkey under a heat lamp in a small cage suggests that Dafar understood or should have understood that the baby monkey he was selling had been prematurely separated from its mother.

According to testimony from U.S. Fish and Wildlife agents, Mexican spider monkey mothers will not voluntarily relinquish their babies and the entire troop of spider monkeys will try to defend the mother and baby from perceived threats. Consequently, to capture baby Mexican spider monkeys, poachers will typically have to kill or incapacitate the mother and troop to capture the baby. In the case of the three baby Mexican spider monkeys that were interdicted on August 13, 2023, the San Diego Zoo performed genetic tests and determined that the three babies each had different mothers.

The three monkeys that Dafar arranged to be smuggled into the United States in June 2022 and July 2023, were not subjected to quarantine, which is required by law to prevent the spread of disease. The regulations are designed to protect the public from zoonotic diseases, which are diseases that spread from animals to humans. Some of the most dangerous zoonotic diseases are those that transfer from primates to humans, such as Ebola, Marburg, monkeypox, and simian immunodeficiency virus

Ultimately, the three Mexican spider monkeys that were seized and quarantined by Fish and Wildlife Service in August 2023 found a home at the Brookfield Zoo in Chicago as part of the Association of Zoos & Aquariums Wildlife Confiscations Network.

In the case of the three monkeys who were interdicted on August 13, 2023, Fish and Wildlife Service was able to place and pay for the baby Mexican spider monkeys’ quarantine and care at the San Diego Zoo.

The Brookfield Zoo now houses a troop of Mexican spider monkeys that consists of the three Mexican spider monkeys (Chrissy, Jack, and Janet) seized in this case, along with two Mexican spider monkeys (Frankee and Bucees) seized in another Southwest Border smuggling case. Here is a photo of Chrissy and Jack, as well as a photo of Chrissy and Jack along with their troopmates Frankee and Bucees:

This case was prosecuted by Sabrina L. Fève and Robert J. Miller.

DEFENDANT                                               Case Number 24CR0615                                         

Sarmad Ghaled Dafar                                     Age: 33                                   Houston, Texas

SUMMARY OF CHARGES

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

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

INVESTIGATING AGENCY

U.S. Fish and Wildlife Service

SAN DIEGO – Federal prosecutors in the Southern District of California filed 135 border-related cases this week, including charges of transportation of illegal aliens, bringing in aliens for financial gain, reentering the U.S. after deportation, deported alien found in the United States, and importation of controlled substances.

The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).

In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.

A sample of border-related arrests this week:

• On April 15, Jesus Manuel Zuniga Huerta and Jose Alberto Flores Avalos of Mexico were arrested at the Otay Mesa Port of Entry and charged with importing deadly fentanyl into the U.S. According to a complaint, Customs and Border Protection officers discovered 148 pounds of fentanyl in the rear frame well of a tractor-trailer driven by Zuniga Huerta.
• On April 15, Brian Jaime Sanchez, a Mexican national, was arrested and charged with Bringing in Aliens for Financial Gain. According to a complaint, Customs and Border Protection officers found an undocumented immigrant concealed in the trunk of Sanchez’s car as he attempted to cross the border at the Tecate Port of Entry.
• On April 17, Sergio Villalba-Serrano, a Mexican national, was arrested and charged with Departed Alien Found in the United States. According to a complaint, Villalba-Serrano was taken into custody near the Tecate Port of Entry after his Cadillac was stopped by U.S. Border Patrol agents. Villalba-Serrano had previously been deported on October 26, 2019, from Laredo, Texas.

Also this week, a number of defendants with criminal records were convicted by a jury or sentenced for border-related crimes such as illegally re-entering the U.S. after previous deportation. Here are a few of those cases:

• On April 10, 2025, following a three-day trial, a federal jury convicted seven-time felon Miguel Rolon of conspiring to bring in aliens and bringing in two aliens for financial gain.  During trial, the evidence showed that Rolon picked up two Guatemalan nationals at a stash house in Tijuana, Mexico, coached the aliens to weave a fictious backstory to customs officers, and attempted to smuggle the same aliens into the United States using others’ U.S. passports at the San Ysidro Port of Entry. Rolon is scheduled to be sentenced on July 7, 2025.
• On April 18, 2024, Javier Gracia-Meza, a Mexican national, who was previously convicted of a felony illegal reentry offense, was sentenced in federal court to 15 months in custody for again entering the United States illegally.
• On April 18, 2025, Cruz Torres-Gonzalez, a Mexican national who was previously convicted of five felony immigration offenses, was sentenced in federal court to 54 months in custody for again entering the U.S illegally.
• On April 18, 2025, Pablo Lazcano-Quinonez, a Mexican national who was previously convicted of felony conspiracy to distribute marijuana, felony possession/use of drug paraphernalia, and two illegal reentry offenses, was sentenced in federal court to 15 months in custody for again entering the U.S illegally.
• On April 18, 2025, Jesus Eduardo Morga-Ceballos - a Mexican national who was previously convicted of a felony controlled substance offense in 2014, a misdemeanor criminal threat with intent to terrorize in 2014, and a felony illegal reentry in 2023 - was sentenced in federal court to 101 days in custody for again entering the U.S illegally.

Pursuant to the Department’s Operation Take Back America priorities, federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.

The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.

Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

SAN DIEGO – Four indictments were unsealed in federal court charging 16 individuals throughout San Diego County with distributing large quantities of methamphetamine, fentanyl and heroin and laundering drug-trafficking proceeds.

In a coordinated takedown yesterday, more than 115 federal, state and local law enforcement officials arrested 10 defendants and executed three search warrants in the Nestor, Palm City, and Encanto neighborhoods within the City of San Diego. Six defendants were still being sought.

Including seizures today and throughout this investigation, authorities have confiscated 26.8 kilograms of powdered fentanyl; 5.7 kilograms of counterfeit pills containing fentanyl (estimated to be 57,000 pills); 25.7 kilograms of methamphetamine; 1.5 kilograms of cocaine; 1.1 kilograms of heroin; ketamine; MDMA; more than $40,000 in U.S. currency; a Maserati Ghibili; and nine firearms including an AK-47.

U.S. Attorney Adam Gordon said: “Together with our law enforcement partners, this office will disrupt and dismantle criminal organizations throughout the district. We are focused on the Department’s Take Back America priorities, and this investigation shows the direct results of implementing these priorities.”

“Drug trafficking organizations fuel addiction and erode the safety of our communities,” said DEA Special Agent in Charge Brian Clark. “This extensive drug trafficking investigation exposed a criminal network that peddled poison from coast to coast. Law enforcement put their collective authorities together to dismantle this organization brick by brick. We stand with our fellow law enforcement partners to ensure the community is safe and those involved in drug trafficking are brought to justice.”

“The indictments unsealed today paint a picture of an organization responsible for trafficking dangerous drugs into our communities – drugs that are killing Americans daily,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “These indictments should send a clear signal to drug trafficking organizations that where there’s money, there’s a trail, and IRS-CI is the best in the world at finding and following those trails.  We are proud to partner with fellow law enforcement agencies to flush out DTOs that put our communities at risk.”

Today’s charges are the result of a 16-month investigation that included the use of court-authorized wiretaps, undercover agents, and confidential sources. According to the indictments, the defendants distributed dangerous drugs such as fentanyl throughout the U.S., including in Ohio and Kansas, on behalf of a San Diego County-based drug trafficking organization. The investigation uncovered the use of shell companies to gather and launder the proceeds of the drug trafficking enterprise from other states, including Colorado, Minnesota and Nebraska. 

These cases are being prosecuted by Assistant U.S. Attorney Michael A. Deshong.

DEFENDANTS                                           

Case Number 25cr0818-BAS

Rodrigo Maciel-Cortez                                  Age: 25

SUMMARY OF CHARGES

Possession with Intent to Distribute more than 500 Grams of Methamphetamine, in violation of Title 21 U.S.C. § 841(a)(1)

Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10 million fine

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

Maximum Penalty: Twenty years in prison; $1 million fine.

Criminal Forfeiture; Title 21 U.S.C. § 853

Case Number 25cr0819-BAS

Elijah Roman                                                Age: 28

Leonela Veronica Leal                                  Age: 26

Cindy Camarena-Gonzalez                          Age: 27

Adan Antonio Sandoval-Luna                      Age: 30

SUMMARY OF CHARGES

Conspiracy to Distribute more than 50 Grams of Methamphetamine (Actual) and more than 400 grams of Fentanyl, in violation of Title 21 U.S.C. § 841(a)(1) and 846

Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10 million fine

Distribution of more than 50 Grams of Methamphetamine (Actual), in violation of Title 21 U.S.C. § 841(a)(1)

Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10 million fine

Possession with Intent to Distribute more than 50 Grams of Methamphetamine (Actual), in violation of Title 21 U.S.C. § 841(a)(1)

Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10 million fine

Conspiracy to Launder Monetary Instruments, in violation of Title 18 U.S.C. § 1956

Maximum Penalty: Twenty years in prison; $5,000 fine

Criminal Forfeiture; Title 21 U.S.C. § 853

Case Number 25cr0820-AJB

Luis Carlos Franco                                         Age: 24

Jesus Adrian Garcia Jr.                                  Age: 32

Jose Alexander Flores                                   Age: 23

Andres Emilio Arce-Corrales                        Age: 18

SUMMARY OF CHARGES

Conspiracy to Distribute more than 100 Grams of Heroin, in violation of Title 21 U.S.C. § 841(a)(1) and 846

Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10,000,000 fine

Distribution of more than 100 Grams of Heroin, in violation of Title 21 U.S.C. § 841(a)(1)

Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10 million fine

Conspiracy to Distribute more than 500 Grams of Methamphetamine, in violation of Title 21 U.S.C. § 841(a)(1) and 846

Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10 million fine

Possession with Intent to Distribute more than 500 Grams of Methamphetamine, in violation of Title 21 U.S.C. § 841(a)(1)

Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10 million fine

Criminal Forfeiture; Title 21 U.S.C. § 853

Case Number 25cr0821-WQH

Diego Hernandez                                           Age: 24

SUMMARY OF CHARGES

Distribution of more than 400 Grams of Fentanyl, in violation of Title 21 U.S.C. § 841(a)(1)

Maximum Penalty: Life in prison; Mandatory Minimum: Ten years in prison; $10 million fine

Criminal Forfeiture; Title 21 U.S.C. § 853

INVESTIGATING AGENCIES

Drug Enforcement Administration

Oceanside Police Department

IRS Criminal Investigation

U.S. Bureau of Land Management

San Diego Police Department

San Diego County Sheriff’s Department

Carlsbad Police Department

United States Marshals Service

* Six defendants are still being sought

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

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

This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

High Intensity Drug Trafficking Areas (HIDTA) program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. This grant program is administered by the Office of National Drug Control Policy (ONDCP). There are currently 33 HIDTAs, and HIDTA-designated counties are located in 50 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.

SAN DIEGO – Federal prosecutors in the Southern District of California filed 116 border-related cases this week, including charges of transportation of illegal aliens, bringing in aliens for financial gain, receipt of bribes by public official, reentering the U.S. after deportation, deported alien found in the United States, and importation of controlled substances.

The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).

In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.

A sample of border-related arrests this week, includes:

• On April 10, six Mexican nationals were arrested and charged with various immigration crimes. According to complaints, they were apprehended by Border Patrol agents while attempting to illegally enter the U.S. about three miles east of the Otay Mesa Port of Entry. While an agent turned his attention to two other suspected illegal border crossers, the six defendants absconded after being placed in handcuffs. Jose Lastra Palafox, Pedro Orlando Aguilar-Vazquez, Javier Eduardo Jimenez Gonzalez, Jose Javier Solis Jardon, Joel Alonso Soria-Garcia, and Lazaro Velazquez Morales were later recaptured.
• On April 6, Jose Manuel Guzman, a United States citizen, was arrested and charged with Importation of a Controlled Substance. According to a complaint, he was intercepted by U.S. Customs and Border Protection officers when a drug detection dog alerted to his vehicle as he attempted to cross the border at the Otay Mesa Port of Entry. Officers found 115 packages of methamphetamine weighing 125 pounds, concealed in the quarter panels, gas tank and doors of the vehicle, the complaint said.
• On April 7, Raul Vallejo-Isordia, Victor Manuel Quintero Sanez, Noe Avila, Jose Juan Cisneros-Cisneros and Valentin Gonzalez-Elizalde – all Mexican nationals - were arrested and charged with Attempted Bringing in Aliens for Financial Gain and Attempted Entry after Deportation. According to a complaint, the defendants were taken into custody in connection with the smuggling of 17 undocumented immigrants who were intercepted by the U.S. Coast Guard 12 miles west of Point Loma.
• Also on April 7, Dennis Geovanny Marquez-Cordova of Honduras was arrested and charged with Deported Alien Found in the United States. According to a complaint, the defendant had been previously deported.

Federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.

The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.

Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

SAN DIEGO – Restaurateur Leronce Suel was sentenced in federal court today to 42 months in prison for submitting more than $1.7 million in fraudulent applications for COVID relief programs and failing to report the income to the IRS.

Suel was convicted by a federal jury in September 2024 of wire fraud, conspiracy, and tax crimes. The court ordered him to pay $1,773,245 in restitution to the U.S. Small Business Administration and criminal forfeiture of $1,466,918 from the over $2.4 million in cash seized from Suel’s home in June 2022. Restitution to the IRS will be determined at a hearing on June 6, 2025.

Suel was the majority owner of Rockstar Dough LLC and Chicken Feed LLC, both of which operated restaurants in the San Diego area, including Streetcar Merchants in the North Park neighborhood.

“This defendant took resources meant to support those most vulnerable during a time of crisis and used them for his own enrichment,” said U.S. Attorney Adam Gordon. “By misappropriating over $1.7 million in COVID relief funds, he robbed individuals and families of the assistance they desperately needed. Today, justice holds him accountable for his exploitation of a public emergency for personal gain.”

According to evidence presented at his eight-day trial, Suel conspired with his business partner to underreport over $1.7 million in gross receipts on Rockstar Dough LLC’s 2020 corporate tax return and COVID relief applications. Suel’s businesses also fraudulently received approximately $1,773,245 million in COVID-related Paycheck Protection Program (PPP) loans and Restaurant Revitalization Fund (RRF) grants by falsely certifying his businesses were eligible and that his businesses would use the money appropriately.

Instead of using the COVID-19 relief program funds on eligible expenses like rent and payroll, Suel and his co-conspirator made substantial cash withdrawals from their business bank accounts and purchased a home in Arkansas. As part of their conspiracy, Suel concealed more than $2.4 million in cash in his bedroom.

On June 23, 2022, IRS-Criminal Investigation special agents executed a search warrant at Suel’s residence where they seized the $2.4 million in cash. During the trial, the evidence showed that Suel attempted to cover-up his crimes by providing false information to an accountant who prepared dozens of original and amended tax returns that contained false information.

In 2023, Suel signed and filed these original and amended tax returns for prior years that included false depreciable assets, business losses, and deductions. In one example, Suel caused one business to deduct significant amounts of rent for years 2020 and 2021, but evidence at trial established Suel paid no rent to that restaurant’s landlord.

Suel also failed to report income he received from his business, including millions of dollars in cash and personal expenses paid for by the businesses.

“Mr. Suel’s 10-plus years of tax evasion and fraudulent claims for COVID relief grants and loans caught up to him when a jury of his peers found him guilty,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Now Mr. Suel will feel the repercussions of his disregard for his fellow taxpayers. Our tax system only works when people pay their fair share, and IRS-CI will continue pursue those who evade their tax responsibilities to their fellow Americans.”

This case is being prosecuted by Assistant U.S. Attorney Christopher Beeler and Trial Attorney Julia Rugg of the U.S. Department of Justice Tax Division.

DEFENDANTS                                             Case Number 23-CR-965-RBM

Leronce Suel                       Age: 47                Fayetteville, Arkansas

SUMMARY OF CHARGES

Wire Fraud Conspiracy – Title 18, U.S.C., Section 1349

Maximum penalty: Thirty years in prison and $1,000,000 fine

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

Maximum Penalty: Thirty years in prison and $1,000,000 fine

Conspiracy to Defraud the U.S. – Title 18, U.S.C., Section 371

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

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

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

Filing False Tax Returns – Title 26, U.S.C., Section 7206(1)

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

Failure to File –Title 26, U.S.C., Section 7203

Maximum Penalty: One year in prison and $25,000

INVESTIGATING AGENCY

Internal Revenue Service – Criminal Investigation (IRS-CI)

A San Diego restaurant owner was sentenced today to 42 months in prison for schemes to defraud COVID-19 relief programs and filing false tax returns.

According to court documents and evidence presented at trial, Leronce Suel was the majority owner of Rockstar Dough LLC and Chicken Feed LLC, both of which operated restaurants in the San Diego area, including Streetcar Merchants in the North Park neighborhood. He conspired with others to underreport over $1.7 million in gross receipts on Rockstar Dough’s 2020 corporate tax return and COVID-19 relief applications. Suel’s businesses fraudulently received $1,773,245 in COVID-related Paycheck Protection Program loans and Restaurant Revitalization Fund grants, two programs created to provide financial assistance to American suffering economic harm as a result of the COVID-19 pandemic.

Suel and his co-conspirator misappropriated COVID-19 relief program funds by making substantial cash withdrawals from their business bank accounts, purchasing a home in Arkansas, and keeping more than $2.4 million in cash in Suel’s bedroom.

Suel did not file timely tax returns for 2018 and 2019, despite being legally required to do so. On his 2020 through 2023 tax returns, Suel also did not report the income from his businesses including millions of dollars in cash he withdrew. Finally, in 2023, Suel filed false original and amended tax returns for multiple years, including personal tax returns for 2016 and 2017 that included false depreciable assets and business losses.

In September 2024, Suel was convicted by a federal jury of wire fraud, conspiracy to commit wire fraud, tax evasion, conspiracy to defraud the United States, filing false tax returns, and failing to file tax returns. Following the convictions, Suel agreed to forfeit $1,466,918 in U.S. currency.

In addition to this prison sentence, U.S. District Court Judge Ruth Bermudez Montenegro for the Southern District of California ordered Suel to pay approximately $1,773,245 in restitution to the Small Business Administration and forfeit $1,466,918. Restitution to IRS will be heard on June 6.

Acting Deputy Assistant Attorney General Karen E. Kelly of the Justice Department’s Tax Division, and U.S. Attorney Adam Gordon for the Southern District of California made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorney Julia Rugg of the Tax Division and Assistant U.S. Attorney Christopher Beeler for the Southern District of California prosecuted the case.

SAN DIEGO – Erik David Morgan of Alpine was sentenced in federal court today to 72 months in prison for possessing a significant amount of fentanyl with the intent to distribute. 

According to plea documents, Morgan used social media messaging applications to arrange to sell 3.5 grams of fentanyl for $150 to an individual who was, in fact, an undercover agent with Homeland Security Investigations (HSI).

On March 14, 2024, when Morgan arrived at the meeting location in El Cajon, he was encountered by uniformed El Cajon police officers, who discovered Morgan in possession of 10.05 grams of fentanyl.

Federal agents and task force officers with Homeland Security Investigations’ Fentanyl Abatement and Suppression Team (FAST) led this investigation.

HSI San Diego FAST is a multiagency task force comprising state, local and federal partners and was first established in August 2022 focusing on the disruption and dismantlement of criminal organizations that smuggle and distribute fentanyl with San Diego County. HSI’s FAST targets fentanyl smuggling and distribution networks to counter the rising overdose rate and decrease the availability and accessibility of fentanyl.

Fentanyl remains a serious threat. The latest DEA laboratory testing announced last fall indicated that five out of 10 pills tested contained a potentially deadly dose of fentanyl. Two milligrams of fentanyl is considered a lethal dose. For perspective, one gram of fentanyl, equivalent in size to a sugar packet, has the potential to kill up to 500 people.

This case is being prosecuted by Assistant U.S. Attorney Aaron McElhose.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

DEFENDANT                                               Case Number 24cr787-BAS                                       

Erik David Morgan                                         Age: 44                                   Alpine, CA

SUMMARY OF CHARGES

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

Maximum penalty: Twenty years in prison and $1,000,000 fine

INVESTIGATING AGENCIES

Homeland Security Investigations

El Cajon Police Department

SAN DIEGO – Adam Gordon, a career prosecutor who became a nationally-recognized expert on prosecutorial strategies to combat the fentanyl epidemic, was sworn in today as U.S. Attorney for the Southern District of California, one of the busiest federal districts in the nation. Mr. Gordon, 43, was appointed by Attorney General Pamela Bondi.

U.S. District Court Chief Judge Cynthia A. Bashant administered the oath of office to Gordon in the presence of his senior leadership team, office colleagues, friends and family.

“Thank you to President Trump and Attorney General Bondi for the opportunity to serve as the United States Attorney for the Southern District of California,” Mr. Gordon said. “I am deeply honored to lead this office and protect the people of this district. For too long, criminal organizations have exploited the chaos at our border. That chaos of criminality and lack of consequences cannot prevail. Together with our dedicated law enforcement partners, we will focus our resources on the Operation Take Back America priorities including securing the border, prosecuting cartel leaders, and removing dangerous offenders from our communities.”

The U.S. Attorney’s Office enforces federal criminal laws in the Southern District of California, which includes San Diego and Imperial counties, and represents the federal government in civil litigation.  The office is one of the nation’s largest, comprised of approximately 300 attorneys and staff members.  As the U.S. Attorney, Gordon is the chief federal law enforcement official for the district.

Mr. Gordon is a veteran prosecutor who has served as an Assistant U.S. Attorney for the Southern District of California since 2019. He most recently worked in the Organized Crime Drug Enforcement Task Forces Unit. Prior to that assignment, he was the office’s Criminal Division Opioid Coordinator for approximately three years.

Gordon was instrumental in creating the Fentanyl Abatement and Suppression Team (“FAST”) in San Diego County which is now a national model. Formed in September 2022, FAST is a multi-agency task force led by Homeland Security Investigations working in conjunction with federal partners, along with state and local agencies to target significant fentanyl distributors in San Diego County to reduce the overdose death rate. He also has personally prosecuted many of resulting in death cases, achieving justice for the families of victims of fentanyl poisonings, including the drug dealer responsible for the death of a 13-year-old in Coronado.

Prior to serving as a federal prosecutor, Mr. Gordon was a Deputy District Attorney in San Diego County where he prosecuted a variety of criminal matters but focused on violent crimes. From 2014 to 2018, Adam was in private practice in San Diego. Gordon received his bachelor’s degree in economics in 2004 from Harvard University, and his law degree from the University of Virginia School of Law in 2008.

SAN DIEGO – Dr. Karim Arabi was convicted by a federal jury today of fraud and money laundering charges in connection with a massive $180 million scheme targeting his then-employer, Qualcomm.

After a four-week trial, the jury deliberated for less than two days. The jury found that while working as vice president of Qualcomm’s Research and Development Department, Dr. Arabi committed fraud by developing a valuable microchip technology, marketing the technology through a company, Abreezio, which he created to conceal his involvement, and then selling the company and its purported technology to Qualcomm for $180 million.

As part of his employment with Qualcomm, Dr. Arabi had agreed that virtually all technology he invented while working at Qualcomm belonged to Qualcomm.  To perpetrate the fraud, Dr. Arabi carefully hid his role as the new company’s shadow CEO, picked its corporate name (Abreezio) and weighed in on its office furniture.

Dr. Arabi created fake email accounts and sent phony emails to impersonate his sister, the supposed inventor of the new technology. In truth, the sister was a nonentity throughout its formation, development, marketing and sale. In the summer of 2015, when Abreezio was filing a new round of patent applications, the sister legally changed her last name to further conceal her relationship with Dr. Arabi.

According to evidence presented at trial, after the deal closed and Qualcomm unwittingly paid almost $92 million to Dr. Arabi’s sister, the campaign of concealment continued: Dr. Arabi invested the money in Canadian and Norwegian real estate while hiding his involvement, funneled funds back to his U.S. companies via intermediary shells, lied repeatedly through Qualcomm’s subsequent civil fraud suit, and received steady installments of laundered fraud proceeds until the month before his arrest in this case.

“The defendant took advantage of the trust placed in him, lining his pockets with millions by orchestrating a scheme to deceive and then bleed his own employer,” said Acting U.S. Attorney Andrew Haden. “His actions weren’t just a betrayal of the company - they were a direct attack on the very principles of fairness and integrity that keep business honest. Today’s jury verdict sends a clear message: In the Southern District of California, fraud has consequences. We will relentlessly pursue justice against those who try to profit through lies and deceit.”

“Dr. Arabi perpetrated an elaborate and exhaustive scheme to conceal, deceive, and defraud his own employer out of millions of dollars,” said FBI San Diego Acting Special Agent in Charge Houtan Moshrefi. “With today’s verdict, Dr. Arabi will now face the consequences of this massive fraud, sending the clear message that corporate executives who facilitate fraud will be held accountable for their crimes.”

“As vice president of Research and Development, Mr. Arabi was entrusted with protecting Qualcomm’s intellectual property rights,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Mr. Arabi executed a scheme to swindle Qualcomm out of $180 million for what was rightfully their own technology. This guilty verdict is reflective of outstanding investigative work by IRS-CI and our partners at the FBI and U.S. Marshal’s Service.”

Qualcomm actually paid $150 million to the coconspirators and others before discovering the fraud.

Two other defendants pleaded guilty in the scheme prior to Arabi’s trial. Ali Akbar Shokouhi, another former Qualcomm employee and the primary investor in Abreezio, pleaded guilty to money laundering and is scheduled to be sentenced on August 1, 2025; Sanjiv Taneja, Abreezio’s nominal CEO, pleaded guilty to money laundering and is scheduled to be sentenced on July 11, 2025.

This case is being prosecuted by Assistant U.S. Attorneys Nicholas W. Pilchak, Janaki G. Chopra and Eric R. Olah. The Justice Department’s Office of International Affairs provided substantial assistance.

DEFENDANT                                 Case Number 22-CR-1152                                      

Karim Arabi                                        Age: 58                                   San Diego, CA

CHARGES

Wire Fraud Conspiracy, in violation of 18 U.S.C. § 1349

Maximum Penalties: Twenty years in prison; $1 million fine or twice the amount of the criminally derived property involved in the transaction

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

Maximum Penalties: Twenty years in prison; $1 million fine

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

Maximum Penalties: Twenty years in prison; fine of $500,000 or twice the amount of the criminally derived property involved in the transaction

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Internal Revenue Services, Criminal Investigation

United States Marshals Service

Royal Canadian Mounted Police

Økokrim, Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime 

SAN DIEGO – Federal prosecutors in the Southern District of California filed 97 border-related cases this week, including charges of transportation of illegal aliens, bringing in aliens for financial gain, receipt of bribes by public official, reentering the U.S. after deportation, deported alien found in the United States, and importation of controlled substances.

The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).

In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.

A sample of border-related arrests this week, includes:

• On March 24, Customs and Border Protection Officers Farlis Almonte and Ricardo Rodriguez were arrested and charged with Conspiracy to Bring in Aliens for Financial Gain, Bringing in Aliens for Financial Gain and Receipt of Bribes by Public Official. According to court records, the officers allowed dozens of cars carrying undocumented immigrants to pass through their inspection lanes at the San Ysidro Port of Entry from August 2024 through January 2025, in exchange for cash.
• On March 29, Osvaldo Parra Franco, a Mexican national, was arrested and charged with Importation of a Controlled Substance. According to a complaint, Parra attempted to cross into the United States at the San Ysidro Port of Entry with methamphetamine, cocaine and fentanyl hidden in a spare tire and tailgate of his vehicle. He was intercepted by Customs and Border Protection officers after an alert from a narcotics detection canine.
• On March 30, Jesus Eduardo Carrasco-Romero, a Mexican national, was arrested three miles east of the Otay Mesa Port of Entry and charged with illegally entering the U.S. after previously being deported on March 20 in El Paso, Texas.
• On March 31, Francisco Anguiano Rios, a Mexican national, was arrested and charged with importation of a controlled substance after Customs and Border Protection officers found 209 packages containing 547 pounds of cocaine concealed in the fuel tank of the tractor trailer Rios was driving as it attempted to cross the border at the Otay Mesa Port of Entry.
• On March 31, Miguel Angel Gonzalez Lujan and Jesus Miguel Gonzalez Garcia, Mexican nationals, were arrested in Campo near the U.S.-Mexico border and charged with Transportation of Illegal Aliens after Border Patrol agents used a spike strip to deflate the front tires of their fleeing vehicle. Four undocumented immigrants were inside.

Federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.

The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.

Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

SAN DIEGO – Sergio Josue Palomera of Chula Vista pleaded guilty in federal court today, admitting that he was transporting two undocumented immigrants who died when he crashed his car while fleeing U.S. Border Patrol at speeds exceeding 110 mph.

Border Patrol agents using remote video surveillance saw Palomera loading the two aliens—a man and a woman—into his car near the U.S.–Mexico border in Otay Mesa on October 22, 2024. An agent responded to the location and saw the car traveling west on State Route 905. The agent activated his lights and sirens to pull the car over.

According to his plea agreement, Palomera initially slowed down and began to move over onto a highway offramp, as if yielding to the Border Patrol agent’s attempt to pull him over. Palomera then quickly accelerated, drove through a red traffic light, and re-entered the highway in an attempt to flee. Palomera was traveling over 110 miles per hour in a 65-mph zone.

Within about one minute, Palomera lost control of the car on State Route 905, and it rolled over. The smuggled woman was ejected from the car and died instantly. The smuggled man suffered a traumatic head injury and died later that evening in the hospital.

Palomera’s sentencing is scheduled for July 2, 2025, at 9:30 a.m. before U.S. District Judge Todd W. Robinson.

This case is being prosecuted by Assistant U.S. Attorney David Fawcett.

DEFENDANT                                                           Case Number: 24cr2466                               

Sergio Josue Palomera                                               Age: 23                       Chula Vista, CA

SUMMARY OF CHARGES

Transportation of Certain Aliens Resulting in Death – Title 8, U.S.C., Section 1324(a)(1)(A)(ii) and (B)(iv)

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

INVESTIGATING AGENCY

United States Border Patrol

SAN DIEGO – Two federal grand jury indictments were unsealed in San Diego today against five alleged Sinaloa Cartel money launderers, including Alberto David Benguiat Jimenez, Israel Daniel Paez Vargas, Salvador Diaz Rodriguez, Christopher Ortega-Lomeli, and Christian Noe Amador Valenzuela. The indictments, returned in September and October 2022, charge the defendants with multiple drug trafficking and money laundering offenses. All defendants remain fugitives.

To date, these money laundering investigations have resulted in charges against 51 defendants and the seizure of more than $4.1 million dollars and approximately 1,304 kilograms of methamphetamine, 34 kilograms of heroin, 11 kilograms of cocaine, and 14 kilograms of fentanyl.

Four of the defendants - Benguiat Jimenez, Paez Vargas, Diaz Rodriguez and Amador Valezuela - along with Enrique Dann Esparragoza Rosas, who was previously charged, were also the target of sanctions imposed today by the Department of Treasury’s Office of Foreign Assets Control (OFAC).

OFAC has identified the defendants and others as members of a money laundering network supporting the Sinaloa Cartel, one of the most notorious and violent drug trafficking organizations in the world, and a U.S.-designated Foreign Terrorist Organization (FTO). The Sinaloa Cartel is responsible for a significant portion of the illicit fentanyl and other deadly drugs trafficked into the United States and has exploited multiple ports of entry along the southern border for its criminal activities. Please see https://home.treasury.gov/news/press-releases/sb0064.

The Drug Enforcement Administration’s Imperial Country District Office and Mexico City Country Office, along with the Internal Revenue Service – Criminal Investigation San Diego Office, Federal Bureau of Investigation San Diego Field Office, Homeland Security Investigations Calexico Office, and San Diego – Imperial County HIDTA are investigating these cases with assistance from the Department of Treasury’s Office of Foreign Assets Control (OFAC).

These cases are being prosecuted by Assistant U.S. Attorneys Matthew J. Sutton, Joshua Mellor, Victor White, and Paul Benjamin. Former Assistant U.S. Attorney Owen Roth provided substantial assistance in these cases.

DEFENDANTS                                            

Case Number 22-cr-02386-TWR

Israel Daniel Paez Vargas                                                     Age: 45                         Mexicali, MX

SUMMARY OF CHARGES

Conspiracy to Import Controlled Substances, in violation of Title 21 U.S.C. §§ 952, 960 and 963.

Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.

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

Maximum Penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine.

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

Maximum Penalty: Twenty years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved.

Case Number 22-cr-02387-TWR

Alberto David Benguiat Jimenez                                           Age: 43                      Mexico City, MX

Salvador Diaz Rodriguez                                                       Age: 39                      Mexicali, MX

Christian Noe Amador Valenzuela                                        Age: 36                      Mexicali, MX Christopher Ortega-Lomeli                                                       Age: 38                     Mexicali, MX

SUMMARY OF CHARGES

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

Maximum Penalty: Twenty years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved.

Case Number 22-cr-02185-BAS                                         

Enrique Dann Esparragoza Rosas                                          Age: 39                        Culiacan, MX

SUMMARY OF CHARGES

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

Maximum Penalty: Twenty years in prison, a fine of $500,000 or twice the value of the monetary instrument or funds involved.

Hobbs Act Extortion, in violation of Title 18 U.S.C. § 1951(a)

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

INVESTIGATING AGENCIES

Drug Enforcement Administration

Internal Revenue Service – Criminal Investigation

Federal Bureau of Investigation

Homeland Security Investigations

San Diego - Imperial County HIDTA

Imperial Valley Law Enforcement Coordination Center - Intelligence

Department of Justice’s Office of International Affairs

Department of Treasury’s Office of Foreign Assets Control

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

This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

The High Intensity Drug Trafficking Areas (HIDTA) program, created by Congress with the Anti-Drug Abuse Act of 1988, provides coordination and assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. This grant program is administered by the Executive Office of the President - Office of National Drug Control Policy (ONDCP). There are currently 33 HIDTAs, and HIDTA-designated counties are located in 50 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.

SAN DIEGO – Federal prosecutors in the Southern District of California filed 90 border-related cases this week, including charges of transportation of illegal aliens, reentering the U.S. after deportation, deported alien found in the United States, and importation of controlled substances.

The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).

In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.

A sample of border-related arrests this week includes:

• Mexican national Aurora Karina Sanchez Quioano was arrested on March 23, 2025, and charged with illegally entering the U.S. after being previously deported after the U.S. Coast Guard reported a vessel onshore at Dog Beach in Ocean Beach. When a U.S. Border Patrol agent arrived at Dog Beach following the report, citizens pointed him towards a jogging trail where he found Sanchez soaking wet.  Sanchez was previously deported on August 8, 2024.    
• On March 23, 2025, Angel Alonso Peralta Fuerte and Juan Jose Diaz-Guerena, both citizens of Mexico, were arrested and charged with alien smuggling for financial gain after the vessel they were operating with 19 individuals on board was detained by the U.S. Coast Guard. All 19 passengers on the vessel admitted that they are citizens of Mexico without lawful documents allowing them to enter the United States and were arrested by San Diego based U.S. Border Patrol Agents.  Peralta was previously deported on February 26, 2025, less than a month prior to this arrest. Two of the individuals on the vessel were also charged with attempted reentry of removed alien based on their prior criminal and immigration history.  According to the complaint, several individuals of the boat stated they were paying between $3,000-15,000 if successfully smuggled into the United States.
• Xavier Garcia, a United States citizen, was arrested on March 26, 2025, when he attempted to cross into the U.S. from Mexico at the Otay Mesa Port of Entry on drug importation charges. According to a federal complaint, he was the driver and registered owner of a vehicle in which Customs and Border Protection officials found 503 packages containing more than 500 pounds of methamphetamine hidden in the engine area, seats, spare tire, doors, roof, tailgate, and center console of his vehicle.

Federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.

The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.

Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

SAN DIEGO – John Washburn, general manager of San Diego Powder & Protective Coatings in El Cajon, and three employees, made their first appearances in federal court today to face immigration charges stemming from a search warrant that was served by federal agents at the property yesterday.

Washburn, along with employees Gilver Martinez-Juanta, Miguel Angel Leal-Sanchez and Fernando Casas-Gamboa, were arrested yesterday. Washburn was charged with Conspiracy to Harbor Aliens; the employees were charged with using false documents to work in the United States.

According to the complaint, Washburn employed undocumented workers and allowed them to live in the company’s warehouse. The three charged employees allegedly provided a false attestation regarding their immigration status to secure employment at the business.

U.S. Magistrate Judge Barbara L. Major set bond for Washburn at $5,000 and ordered him and the other defendants to appear in court for a preliminary hearing on April 8, 2025, at 9:30 a.m.

The Homeland Security Investigations, San Diego Office is investigating these cases with assistance from the Department of Homeland Security, Office of Inspector General; General Services Administration, Office of Inspector General; United States Border Patrol; U.S. Customs and Border Protection; United States Immigration and Customs Enforcement, Enforcement and Removal Operations; Naval Criminal Investigative Service; Small Business Administration, Office of Inspector General; Drug Enforcement Administration, San Diego Field Division, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.   

These cases are being prosecuted by Assistant U.S. Attorneys Henry F.B. Beshar and Michael A. Deshong.

DEFENDANTS                                            

Case Number 25mj1458-BLM

John Washburn                                                         Age: 57             

SUMMARY OF CHARGES

Conspiracy to Harbor Aliens, in violation of Title 8, U.S.C. § 1324(a)(1)(A)(iii) and (v)(I); Maximum Penalty: Ten years in prison; $250,000 fine.

Case Number 25mj1459-BLM

Gilver Martinez-Juanta                                                        Age: 39

SUMMARY OF CHARGES

False Attestation (Felony), in violation of Title 18, U.S.C. § 1546(b)(3); Maximum Penalty: 10 years in prison; $250,000 fine.

Case Number 25mj1460-BLM

Miguel Angel Leal-Sanchez                                                 Age:39                         

SUMMARY OF CHARGES

False Attestation (Felony), in violation of Title 18, U.S.C. § 1546(b)(3); Maximum Penalty: 10 years in prison; $250,000 fine.

Case Number 25mj1461-BLM

Fernando Casas-Gamboa                                                      Age: 21                        

SUMMARY OF CHARGES

False Attestation (Felony), in violation of Title 18, U.S.C. § 1546(b)(3); Maximum Penalty: 10 years in prison; $250,000 fine.

INVESTIGATING AGENCIES

Homeland Security Investigations

Naval Criminal Investigative Service

U.S. Department of Homeland Security, Office of Inspector General

General Services Administration, Office of Inspector General

Small Business Administration, Office of Inspector General

U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations

Drug Enforcement Administration

Bureau Alcohol, Tobacco, Firearm,s and Explosives

U.S. Border Patrol

U.S. Customs and Border Protection

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

This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

SAN DIEGO – Regina Brice, a former employee of the California Employment Development Department, was sentenced in federal court today to 66 months in prison for using her position to file $858,339 in fraudulent unemployment claims, effectively stealing money that was intended to give economic relief to people impacted by the pandemic.

According to court documents, Brice was employed by the EDD since 2010. During the pandemic, she was responsible for processing COVID-related unemployment claims. However, between July 2020 and May 2021, Brice exploited her employee access at EDD to manipulate and file fraudulent unemployment claims for her co-conspirators in exchange for thousands of dollars in bribes. These co-conspirators included California prison inmates whom she instructed on how to bypass the system’s fraud checking software to obtain the money.

“This defendant turned her back on the oath of her office and those she was supposed to help during a once-in-a-century pandemic,” said Acting U.S. Attorney Andrew Haden. “Today she is being held accountable for her greed.”

“Former California Employment Development Department (EDD) Employment Program Representative Regina Brice filed fraudulent and manipulated unemployment insurance (UI) claims in exchange for kickbacks, diverting vital taxpayer resources away from unemployed American workers who lost their jobs due to the COVID-19 pandemic,” said Quentin Heiden, Special Agent-in-Charge, Western Region, U.S. Department of Labor, Office of Inspector General (DOL-OIG). “Brice violated the public trust afforded to her as an EDD employee to enrich herself and others. We will continue to work with our law enforcement partners to safeguard the integrity of the UI program for those who need it. This sentencing demonstrates DOL-OIG’s commitment to root out waste, fraud, and abuse in DOL programs.”

DHS Inspector General Joseph V. Cuffari, Ph.D., said, “Regina Brice defrauded government programs meant to help Americans at the height of the COVID-19 pandemic. DHS OIG will continue to prioritize pandemic-related fraud investigations and work with our law enforcement partners to bring perpetrators to justice. I appreciate the continued partnership between DHS OIG and the Department of Labor OIG in bringing this case to a close.”

“Today’s sentencing marks a significant victory for justice and accountability,” said Matt Shields, Inspector in Charge of the U.S. Postal Inspection Service in Los Angeles Division. “The exploitation of vulnerable individuals’ personal information for nearly a million dollars in fraudulent gains, facilitated by an EDD employee’s corruption, is a betrayal of public trust. I commend the relentless efforts of our inspectors and collaboration with the Department of Labor OIG and Department of Homeland Security OIG in bringing this case to a close and ensuring that such misconduct results in severe consequences.”

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

This case is being prosecuted by Assistant U.S. Attorney Ronald Sou.

DEFENDANT                                   Case Number 23-CR-2082-RBM                          

Regina Brice                                       Age: 43                                   San Diego, CA

SUMMARY OF CHARGES

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

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

INVESTIGATING AGENCIES

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

Department of Homeland Security – Office of the Inspector General

United States Postal Inspector Service

California Employment Development Department – Investigation Division

SAN DIEGO – After a weeklong trial, San Diego-based securities attorney Andrew Coldicutt was convicted by a federal jury today on all 17 counts of securities fraud, false securities registration statements, and wire fraud in connection with two pump-and-dump market-manipulation schemes.

The jury deliberated for less than four hours and determined that Coldicutt used his expertise as an experienced securities lawyer to help clients – who were actually undercover FBI agents – create companies, take them public, release false information about the companies, manipulate the stock for a windfall and conceal their affiliation with those companies.

In the first scheme, Coldicutt worked with others from 2017 through 2019 to prepare and execute a pump-and-dump stock fraud scheme. Coldicutt created a business plan for a fake backyard fruit harvesting company. He prepared and filed securities registration statements with the U.S. Securities and Exchange Commission for an initial public offering of the company’s stock. The securities registration statements contained false and misleading information about the company, its business plans, and the people who owned and controlled the company.

In the second scheme, in 2019, one of Coldicutt’s corporate clients needed to raise money fast. Rather than raise money legally, Coldicutt presented the undercover FBI agents with another pump-and-dump stock fraud scheme. Coldicutt wrote a false attorney opinion letter to facilitate the sale of stock for the pump-and-dump scheme.

During the trial, the government presented multiple recordings connecting Coldicutt to the crimes, including inventing the business plan in the middle of a meeting with undercover FBI agents. Coldicutt was also recorded accepting $2,500 in cash as an advance on successfully completing the pump-and-dump scheme. Jurors were also presented with encrypted messages where Coldicutt coordinated the plans for the pump-and-dump with a cooperating source.

According to testimony during the trial, the expected profit of the first pump-and-dump scheme was approximately $4.85 million, and Coldicutt’s share would be about $240,000. Since Coldicutt was actually working with undercover FBI agents and sources gathering evidence against him, no investors were injured.

A “pump and dump” scheme is a type of fraud where manipulators gain control over a company’s stock and boost a company's stock price by spreading false information or trading in a way that creates fake demand. Once the stock price is inflated, they sell off their shares (the “dump”), causing the price to drop and leaving investors with losses.

“Securities attorneys and other professionals in the securities industry hold a critical position of trust and responsibility,” said Acting U.S. Attorney Andrew R. Haden. “When these individuals misuse their legal credentials to commit fraud, it is innocent investors who often bear the brunt of the harm. Thanks to the diligent work of FBI investigators and our prosecution team, we were able to expose the wrongdoing and deliver justice without any investors suffering financial loss. This outcome reflects the extraordinary efforts of all involved.”

“Andrew Coldicutt engaged in a deliberate, unlawful and years long securities fraud scheme,” said FBI San Diego Special Agent in Charge Stacey Moy. “Attorneys are held to a higher standard of conduct and this case proves when an individual in a position of trust abuses their authority for unjust personal gain, the FBI will hold them accountable.”

The defendant is scheduled to be sentenced on July 11, 2025, before U.S. District Judge Jinsook Ohta.

The Securities and Exchange Commission has also taken civil action against Coldicutt.

DEFENDANT                        Case Number 22cr1881                                       

Andrew Coldicutt                    Age: 44                    San Diego, California

SUMMARY OF CHARGES

Title 15, U.S.C., Sec. 77q, 77x – Securities Fraud

Maximum Penalty: Twenty years in prison

Title 15, U.S.C., Sec. 77g, 77x – False Securities Registration Statements

Maximum Penalty: Twenty years in prison

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

Maximum Penalty: Twenty years in prison

INVESTIGATING AGENCY

Federal Bureau of Investigation

SAN DIEGO – Federal prosecutors in the Southern District of California filed more than 90 border-related cases this week, including charges of transportation of illegal aliens, bringing in aliens for financial gain, reentering the U.S. after deportation, deported alien found in the United States, and importation of controlled substances.

The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).

In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.

A sample of border-related arrests this week, includes:

• Mexican nationals Eleazar Mozqueda Simental and Manuel Antonio Mozqueda Simental were arrested and charged on March 20, 2025, in connection with a maritime smuggling incident. They were accused of illegally transporting 14 undocumented immigrants from Mexico, Vietnam and China – all of whom were forced to wear large black trash bags over their heads and bodies during the four-hour trip. They were brought into the United States on a panga boat traveling at high speed across rough seas. According to interviews with the undocumented immigrants on the boat, at one point, the panga caught air, broke apart and capsized, sending terrified passengers into the water. The passengers, including a deaf/mute woman, were rescued.
• Mexican national Osvaldo Reyes-Virgen was arrested on March 17, 2025, by San Diego- based U.S. Border Patrol agents and charged after he was found in the United States hiding behind brush near Imperial Beach after agents observed a jet ski traveling north.  Reyes-Virgen was previously deported on March 6, 2025, after entering the United States illegally.
• On March 17, 2025, Sarah Beth Schatz, a United States citizen, was arrested and charged with alien smuggling after she was caught attempting to smuggle two citizens of China into the United States in the trunk of the vehicle she was driving.  The two Chinese citizens she was arrested with admitted that they are citizens of China without lawful documents allowing them to enter the United States and that they were going to pay $30,000 and $15,000 if successfully smuggled into the United States.
• Joshua Nicolas Sanchez Lopez, a Mexican citizen, was arrested on March 15, 2025, when he attempted to cross into the U.S. from Mexico at the Otay Mesa Port of Entry on drug importation charges. According to a federal complaint, he was the driver and registered owner of a vehicle where Customs and Border Protection officials found 108 packages consisting of over 100 pounds of methamphetamine, 22 pounds of fentanyl, and more than four pounds of heroin hidden in the doors, quarters panels, and seats of his vehicle.
• On March 16, 2025, Baudelio Escalante-Orozco, a citizen of Mexico, was arrested after he was found by San Diego-based U.S. Border Patrol Agents attempting to hide in brush seven miles north of the U.S./Mexico International Boundary Line and charged with being a deported alien found in the United States.  He is currently on probation in the District of Oregon for the same crime.   

Federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.

The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.

Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

EL CENTRO – Twenty-two alleged members of a sophisticated transnational drug trafficking organization with ties to the Sinaloa-based Beltran Leyva Cartel were indicted by a federal grand jury for importing and distributing more than a ton of methamphetamine, fentanyl and cocaine into the United States, laundering the illicit proceeds, and attempting to export firearms from the United States into Mexico.

In a coordinated takedown this morning in California, Arizona, Iowa, and Colorado, more than 150 federal, state, and local law enforcement officials arrested 10 defendants and executed six search warrants in Imperial County. As of this afternoon, the search continues for 12 fugitives.

Including seizures today and throughout this long-term investigation, authorities have confiscated more than 1,000 kilograms (about 2,204 pounds) of drugs, including methamphetamine, cocaine, and over 750 kilograms (about 1,653 pounds) of fentanyl, 10 firearms, and more than $250,000 in narcotics proceeds.

“We have literally seized a ton of drugs that were destined to hit our streets and harm our community,” said Acting U.S. Attorney Andrew Haden. “By disrupting this prolific, cartel-linked trafficking network, we are preventing the devastation and violence it brings.”

“Today’s enforcement action marks the culmination of a complex, long-term HSI investigation, demonstrating the strong collaboration between federal, state, and local law enforcement agencies nationwide,” said Shawn Gibson, Special Agent in Charge of HSI San Diego. “Our local communities are undoubtedly safer today, and we remain committed to aggressively pursuing criminal organizations that threaten our country.”

“Close coordination and aggressive action amongst allied law enforcement agencies just made communities nationwide safer places to live and work,” said El Centro Border Patrol Sector Chief Patrol Agent Gregory Bovino. “The well executed takedown of this drug trafficking organization heralds a new day in homeland security where we will relentlessly apprehend and prosecute transnational threats.”

According to search warrants, the defendants belonged to a Mexicali, Mexico- and Imperial County-based transnational criminal organization that operated as a distribution cell for the Beltrán Leyva Cartel, specifically associated with Fausto Isidro Meza Flores aka El Chapo Isidro. Using undercover operations and multiple rounds of wiretaps, agents conducted numerous controlled purchases, traffic stops of personal vehicles and tractor trailers, and searches of houses and stash locations leading to large seizures of narcotics.

Additionally, during the fourth round of wiretaps, one of the wiretap targets, an Imperial County-based narcotics subdistributor, was shot multiple times in Mexicali and died several months thereafter. Investigators believe that the subdistributor was lured from the United States to Mexico and shot by a co-conspirator in relation to their drug trafficking and money laundering activities.

According to federal search warrants:

In one instance on January 23, 2023, authorities seized approximately 1.4 million fentanyl pills after intercepting phone conversations about moving fentanyl pills in a semi-truck. Federal agents watched the transaction from afar, then conducted a traffic stop on the drug-laden tractor-trailer. Law enforcement officials located eight duffel bags containing approximately 148.53 kilograms (327.45 pounds) in the trailer of the truck.

In another instance, on May 9, 2023, authorities seized approximately 483,000 fentanyl pills after intercepting phone conversations about moving narcotics in a semi-truck. Law enforcement conducted a traffic stop on the drug-laden tractor-trailer and located bags containing approximately 48.30 kilograms (106.48 pounds) of fentanyl pills in the truck.

Shortly thereafter, on May 25, 2023, authorities seized approximately 480,000 fentanyl pills, 72.29 kilograms of methamphetamine, and a loaded 9mm handgun with a 10-round magazine inserted and a round in the chamber. After intercepting phone conversations about coordinating the movement of narcotics in a semi-truck, federal agents surveilled the narcotics being loaded into the tractor-trailer, then conducted a traffic stop. Law enforcement officials located six duffel bags containing approximately 72.29 kilograms (159.37 pounds) of methamphetamine and 48.6 kilograms (107.14 pounds) of fentanyl in the trailer of the truck.

In another instance, on October 9, 2023, investigators seized approximately 139,000 fentanyl pills and 36.66 kilograms (80.82 pounds) of methamphetamine following federal agents’ surveillance of defendants unloading and transporting the narcotics.

On March 14, 2024, after a traffic stop conducted by a Brawley police officer, law enforcement seized approximately 59.48 kilograms (131.13 pounds) of methamphetamine.

Federal agents also seized firearms and ammunition during the investigation, including two gold plated AR-15 semi-automatic rifles hidden inside a 55-gallon barbeque grill on August 3, 2023, and two rifles, two pistols, approximately 2182 ammunition rounds, and seven magazines destined for Mexicali-based drug traffickers.

Additionally, according to court records, five of the charged defendants are tied to alien smuggling activity, having been either arrested and/or previously prosecuted for immigration-related crimes, such as alien smuggling, accessory after the fact to illegal entry, and selling or offering to sell a Visa.

This case is being prosecuted by Assistant U.S. Attorney Loren G. Renner.

DEFENDANTS                                            

Case Number 24cr2399                               

Irving Alberto Lopez Valdes                                      Age: 36                       Mexicali, Mexico

Raul Salome Valdez-Orduno                                     Age: 46                       Mexicali, Mexico

Case Number 24cr2400

Jesus Damian Lizarraga Sanchez                               Age: 28                       Mexicali, Mexico

Case Number 24cr2434

Elizabeth Millan                                                         Age: 46                       San Diego, California

Brandon Garcia                                                          Age: 27                       Calexico, California

*Seven unnamed defendants are fugitives

Case Number 24cr2431

Roberto Marrufo                                                        Age: 40                        Calexico, California

Case Number 25cr0785

Ricardo Miramontes Nava                                          Age: 35                       Calexico, California

Case Number 25cr0786

Jacob Rodiles                                                              Age: 21                       El Centro, California

Roberto Fernandez                                                     Age: 70                       Calexico, California

Raul Martinez Jimenez                                               Age: 56                       Mexicali, Mexico

Julian Banuelos                                                           Age: 19                       Imperial, California

Alain Alejandro Robles-Murrieta                               Age: 19                       Mexicali, Mexico

*Three unnamed defendants are fugitives

SUMMARY OF CHARGES

Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Sections 841(a) and (b)(1), 846

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

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

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

Attempted Transfer of a Firearm for Use in a Drug Trafficking Crime – Title 18, U.S.C., Section 1924(h)

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

INVESTIGATING AGENCIES

Homeland Security Investigations, Calexico - Imperial Valley Border Enforcement Security Taskforce (IV-BEST)

Homeland Security Investigations, Riverside, CA

Homeland Security Investigations, Denver, CO

Homeland Security Investigations, Yuma, AZ

Homeland Security Investigations, Sioux City, IA

United States Border Patrol, El Centro Sector Intelligence Unit

Customs and Border Protection, Calexico Intelligence Division

Imperial County Narcotics Task Force

Drug Enforcement Administration, Imperial County Office

Drug Enforcement Administration, Phoenix Office

Federal Bureau of Investigations, Imperial County Office

United States Immigration and Customs Enforcement, Enforcement and Removal Operations

United States Marshals Service

Calexico Police Department

Imperial County Sheriff’s Office

Imperial County District Attorney’s Office

Brawley Police Department

California Highway Patrol

El Centro Police Department

San Diego-Imperial Valley HIDTA

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

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

High Intensity Drug Trafficking Areas (HIDTA) program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. This grant program is administered by the Office of National Drug Control Policy (ONDCP). There are currently 33 HIDTAs, and HIDTA-designated counties are located in 50 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.

This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

SAN DIEGO – Randal Vance and his longtime friend, Keir Ceballos-Rivera, were indicted by a federal grand jury on charges that they employed children to help them cultivate, produce and distribute psilocybin mushrooms at locations in Fallbrook and Bonsall.

Also indicted was Rebecca Vance, wife of Randal Vance. The trio made their initial appearances in federal court today on an array of federal drug-trafficking charges. Randal Vance and Ceballos are charged with conspiring to use and employ minors to produce a controlled substance; all defendants are charged with conspiring to distribute a controlled substance and conspiring to obstruct justice by destroying evidence; and Randal Vance is charged with distributing a controlled substance to minors and possessing firearms in furtherance of a drug-trafficking crime.

At today’s hearing, prosecutors told the court the children were 9 and 11 when the alleged conspiracy to harvest psilocybin at the locations on Ash Street in Fallbrook and Lilac Road in Bonsall began. Psilocybin mushrooms are a controlled substance that act as hallucinogenic drugs, inducing altered states of consciousness and vivid sensory experiences.

All three defendants were arrested yesterday. At today’s hearing, U.S. Magistrate Judge Valerie E. Torres granted the government’s request that Randal and Rebecca Vance be detained without bond because they are a flight risk. A detention hearing for Ceballos-Rivera is set for March 25, 2025.

The United States told the Court that Randal Vance informed customers and co-conspirators that the minors assisted him in producing psilocybin. For example, on or about October 18, 2023, Vance texted a photograph of one of the minors holding a large psilocybin mushroom in front of his face at the Ash Street location and said that the “11 year old helps me grow them.”

One of the minors informed Randal Vance on May 31, 2024, that he was selling a psilocybin capsule to a friend for $3. At the time, the boy was a student at Lincoln Middle School in Oceanside. Randal Vance responded: “Nice! Make sure your friend’s parents don’t find out or you and I are in big big trouble.”

Randal Vance boasted of dosing the children with psilocybin and advised others to do likewise, the indictment said. For example, on or about October 13, 2023, Randal Vance messaged a co-conspirator a photo of one of the minors holding a large psilocybin mushroom and stated that an 11-year old “cultivates and microdoses. It’s good for kids’ brains.” Later in the conversation, Randal Vance identified the other minor as nine years old and said, “Yeah I usually do a half dose of microdose capsules for them” and “.05 every other day for them. It’s such a difference too.”

Ceballos-Rivera sent Randal Vance a photograph of another child at the Ash Street location holding a large psilocybin mushroom and covering part of his/her face on or about September 7, 2024. Ceballos-Rivera wrote: “From earlier today haha” and “‘No face, no case.’”

Randal Vance is also charged with illegally possessing a Glock 34 pistol, a Walther P22 pistol, a Henry Survival AR7 rifle, a Smith and Wesson revolver, an H&R Model 900 revolver, and a Browning 30-06 rifle in furtherance of a drug trafficking offense.

On October 4, 2024, law enforcement executed search warrants on the Fallbrook and Bonsall locations. At the Ash Street location, law enforcement recovered approximately 204 pounds of fresh psilocybin mushrooms, 53 pounds of dried psilocybin mushrooms, 35 pounds of psilocybin chocolate bars, 18 pounds of inoculated substrate to grow psilocybin mushrooms, and equipment used to grow, harvest, and process psilocybin mushrooms.

At the Lilac Road location, law enforcement recovered approximately 25 pounds of dried psilocybin mushrooms, five pounds of psilocybin chocolates, and five pounds of psilocybin capsules, as well as molds used to make the psilocybin chocolate bars.

Law enforcement officials also seized six firearms from the Lilac Road location: a Glock 34 pistol, a Walther P22 pistol, a Henry Survival AR7 rifle, a Smith and Wesson revolver, an H&R Model 900 revolver, and a Browning 30-06 rifle. None of the firearms were locked up, and loaded magazines were found next to the Glock 34 and Walther P22.

Randal Vance was arrested that day. Prior to his federal arrest, he was out on bond pending state charges. After Randal Vance’s arrest by local law enforcement, the defendants are alleged to have conspired together to destroy evidence by deleting phone messages and taking down websites Randal Vance had used to distribute psilocybin.

This case is being prosecuted by Assistant U.S. Attorneys Paul Benjamin and Dana Segal.

If you are concerned that your child may have been exposed to illegal drugs as a result of the activities alleged in this case, please contact the DEA at https://www.dea.gov/submit-tip.

DEFENDANTS                                 Case Number 25-CR-817-RSH                                   

Randal Vance                                     Age: 42                                   Fallbrook, CA

Rebecca Vance                                   Age: 41                                   Oceanside, CA

Keir Ceballos-Rivera                          Age: 33                                   Oceanside, CA

SUMMARY OF CHARGES

Conspiracy to Employ or Use Minors to Violate the Controlled Substances Act – Title 21, U.S.C., Sections 841, 846, and 861(a)

Maximum penalty: Mandatory minimum one year to 40 years in prison

Conspiracy to Distribute a Controlled Substance- – Title 21, U.S.C., Sections 841 and 846

Maximum penalty: Twenty years in prison

Distribution of a Controlled Substance to Minors– Title 21, U.S.C., Section 859(a)

Maximum penalty: Mandatory minimum one year to 40 years in prison

Possession of a Firearm in Furtherance of a Drug Trafficking Offense- – Title 18, U.S.C., Section 924(c)

Maximum penalty: Mandatory minimum five years to life in prison

Conspiracy to Obstruct Justice- – Title 18, U.S.C., Sections 1503(a), (b)(3), and 371

Maximum penalty: Ten years in prison

INVESTIGATING AGENCIES

Drug Enforcement Administration

San Diego Sheriff’s Department

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

SAN DIEGO – Philip Flores, the owner, president and chief executive of Intellipeak Solutions, Inc., a former defense contractor based out of Fredericksburg, Virginia, pleaded guilty in federal court today, admitting that he participated in a bribery scheme with former Naval Information Warfare Center employee James Soriano.

According to his plea agreement, Flores gave various things of value to Soriano, including expensive meals at restaurants in San Diego and Washington D.C., field level tickets and parking passes to Game 5 of the 2018 MLB World Series in Los Angeles, and tickets to the 2019 NFL Super Bowl in Atlanta, Georgia. The cost of tickets to these premier sporting events totaled over $18,000.

In return, Soriano used his position as a contracting officer’s representative at the Naval Information Warfare Center to ensure that Intellipeak was awarded numerous no-bid government contracts through the Small Business Administration’s 8(a) program. Soriano secured the contracts by falsifying technical evaluations, providing high ratings to Intellipeak to do the contracted work, and approving Intellipeak’s invoices on the awarded contracts, despite knowing that Intellipeak was not doing the work but instead subcontracting out all or most of the work to non-8(a) companies in violation of the SBA 8(a) rules.

Soriano also exploited competitive contracting through the SBA 8(a) program to benefit Intellipeak over other contractors. For example, Soriano secretly allowed Flores to draft contract discriminators to ensure that Intellipeak was selected as a winning bidder on a competitive contract. Soriano also allowed Flores to secretly draft procurement documents for an $86 million competitive contract and then performed multiple steps to attempt to award the contract to Intellipeak even though its bid was $6 million higher than another contractor.

According to his plea agreement, Flores also exploited Intellipeak’s 8(a) small business status by marketing Intellipeak to other defense contractors, who were not part of the 8(a) program, as a way for those companies to get access to 8(a) sole source contracts, generally in exchange for “pass through” fee that was equal to 6 to 8 percent of the contract value. Flores charged his 6 to 8 percent fee to the government, which Soriano approved, even though both knew that Intellipeak was not doing the work on the contracts and the fee did not reflect performed work.

According to Flores’s plea agreement, as a result of the conspiracy, the government paid Intellipeak more than $16 million to perform work on approximately 26 government contracts and task orders. The profit Intellipeak made from these contracts and task orders was conservatively estimated to be between $550,000 and $1.5 million. Further, as part of his plea agreement, Flores has agreed to pay restitution to three small businesses that were foreseeable victims of the bribery scheme.

Flores is scheduled to appear before U.S. District Judge Todd W. Robinson for sentencing on June 13, 2025.

“Those who undermine the integrity of the government procurement process will be held accountable,” said Acting U.S. Attorney Andrew Haden. “As this guilty plea demonstrates, we will continue to prosecute those individuals who put their own personal gain ahead of the system that supports our nation’s warfighters and at the expense of American taxpayers.”

“Mr. Flores’s plea agreement is a positive step toward accountability for his role in this illicit scheme,” said John E. Helsing, Acting Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Western Field Office. “Mr. Flores sought to enrich himself and his company at the expense of the American taxpayers.  DCIS remains committed to working jointly with the United States Attorney’s Office and our law enforcement partners to investigate and deter public corruption within the Department of Defense.”

“Mr. Flores’s participation in an illicit scheme to bribe a public official in exchange for unlawful enrichment in contract awards undermines the Department of the Navy’s commitment to a fair and unbiased procurement process,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS and our investigative partners remain committed to ensuring the continued integrity of the Department of the Navy’s acquisitions process.”

“Mr. Flores intentionally undermined the DoD contracting process,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “The DoD contracting process ensures our warfighters get the best equipment available and that American tax dollars are spent in a responsible manner. IRS-CI is committed to deterring and preventing this sort of fraud, in partnership with fellow law enforcement organizations, to ensure our servicemembers are properly equipped to fight and win in an increasingly complex battlespace.”

“Those who engage in bribery schemes to gain access to preferential small business contracts will be aggressively investigated,” said SBA OIG’s Assistant Inspector General for Investigations Shafee Carnegie. “Our office will relentlessly pursue fraudsters who seek to exploit SBA’s vital economic programs for small businesses. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”

Soriano was charged as a co-defendant and pleaded guilty to conspiracy to commit bribery in 23-cr-2282-TWR. Soriano was also separately charged and pleaded guilty to conspiracy to commit bribery and fraud and false statement in filing a tax return in 24-cr-0341-TWR. Soriano is next scheduled to appear before U.S. District Judge Todd W. Robinson for sentencing on May 9, 2025.

This case is being prosecuted by Assistant U.S. Attorneys Patrick C. Swan, Katherine E.A. McGrath, and Carling E. Donovan.

DEFENDANT                       Case Number 23-cr-2282-TWR-2                          

Philip Flores                            Age: 53                                    Fredericksburg, VA

SUMMARY OF CHARGES

Conspiracy to Commit Bribery - Title 18, U.S.C., Section 371

Maximum penalty: Five years in prison; a maximum $250,000 fine or twice the gross gain or loss resulting from the offense, whichever is greatest; and an order of restitution to victims of the offense of at least $50,000.

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Small Business Administration – Office of Inspector General

Internal Revenue Service Criminal Investigation

Department of Health and Human Services – Office of Inspector General

If you have information regarding fraud, waste, or abuse relating to Department of Defense personnel or operations, please contact the DoD Hotline at 800-424-9098. 

SAN DIEGO – Brian Alexis Patron Lopez was found guilty by a federal jury today for his role in the kidnapping, hostage taking, torture, and murder of 18-year-old M.A.R., a U.S. citizen whose death was punishment for a dispute over a stolen load of methamphetamine that was supposed to have been smuggled into the United States.

The jury deliberated for less than a full day at the end of a seven-day trial. The jury found Patron guilty on all counts, including Intentional Killing While Engaged in Drug Trafficking, Hostage Taking Resulting in Death, and Conspiracy to Commit Hostage Taking Resulting in Death.

“This is a heartbreaking tragedy, where a young man lost his life, leaving his family shattered,” said Acting U.S. Attorney Andrew Haden. “Drug traffickers are ruthless and will stop at nothing. But their resolve pales in comparison to the commitment of the United States to the safety of its citizens wherever they may be. This kidnapping and murder of a U.S. citizen happened in the dark corners and remote ravines of Tijuana, at the very beginning of the COVID-19 pandemic. With the incredible assistance of FBI San Diego and our Mexican counterparts, our prosecution team did not rest until justice was served for the victims of this heinous senseless cruelty.”

“Today’s verdict is an impactful outcome to a ruthless, vicious, and violent hostage taking and murder, and brings justice to the victim’s family,” said San Diego FBI Special Agent in Charge Stacey Moy. “FBI San Diego will continue to be a formidable force against drug cartels and cartel violence, which threaten the safety and security of Americans both here and abroad and devastate our communities.”

Patron is scheduled to be sentenced on July 7, 2025, before U.S. District Judge William Q. Hayes.

The victim was abducted from a hotel in Tijuana, Mexico on May 29, 2020. He was then beaten, tortured, and finally shot to death, all while his attackers sought a ransom from his family. His body was recovered on a hillside in Tijuana six days later.

According to evidence presented at trial, on May 29, 2020, at approximately 11:57 p.m., Patron and others forcibly removed the victim from his hotel room. Patron and others punched, kicked, and pistol-whipped M.A.R. Once subdued, the attackers put M.A.R. in a waiting car and drove away.

Patron and his co-conspirators then drove M.A.R. to Patron’s neighborhood, where they continued to beat and torture M.A.R. At around the same time, Patron and his co-conspirators began to make ransom demands on M.A.R.’s family over texts and calls, with the demand ranging from $2,000 to $3,000 to methamphetamine in exchange for M.A.R.’s release.

In the afternoon of May 30, 2020, Patron and his co-conspirators brought M.A.R. to a different motel and then to an apartment before bringing him to a deserted hillside on the night of May 30, 2020. There, Patron fatally shot M.A.R., even as his family attempted to pay his ransom.

During the trial, the government presented evidence connecting Patron to the crimes, including Facebook messages between Patron and co-conspirators about the crimes, plus surveillance video that captured the kidnapping outside a Tijuana hotel. In that video, Patron wore a jacket that matched the one he wore earlier in the night. Patron’s bracelet was left behind at the kidnapping and was later recovered by law enforcement. Patron was wearing the same bracelet in Facebook photos posted before the murder. Jurors were also presented with the call logs and WhatsApp messages with the ransom demands and proof-of-life evidence.

Assistant U. S. Attorneys Mario Peia and Alexandra F. Foster prosecuted this case.

DEFENDANT                                            Case Number 21CR1683-WQH

Brian Alexis Patron Lopez                            Age: 23            Tijuana

AKA Leobardo Garcia

SUMMARY OF CHARGE

Intentional Killing While Engaged in Drug Trafficking, in violation of 21 U.S.C. §848(e)(1)(A)

Maximum Penalty: Life in Prison

Minimum Penalty: Twenty years in Prison

Hostage Taking Resulting in Death, in violation of 18 U.S.C. § 1203

Maximum Penalty: Life in Prison

Minimum Penalty: Life in Prison

Conspiracy to Take Hostages Resulting in Death, in violation of 18 U.S.C. § 1203.

Maximum Penalty: Life in Prison

Minimum Penalty: Life in Prison

INVESTIGATING AGENCY

Federal Bureau of Investigation

This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership that brings together the combined expertise 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.

This case is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. [use if applicable] Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

SAN DIEGO – Two indictments were unsealed in federal court today charging 16 alleged members of an Escondido-based drug trafficking organization with distributing large quantities of methamphetamine, fentanyl, cocaine, and Adderall. 

In a coordinated takedown this morning, more than 150 federal, state and local law enforcement officials arrested all 16 defendants and executed 16 search warrants in Escondido, San Diego, Orange County, and Roanoke, Virginia.

Including seizures today and throughout this 16-month investigation, authorities have confiscated more than 2 kg of fentanyl; more than 53 kg (over 116 pounds) of methamphetamine; substantial quantities of cocaine and Adderall; nine firearms; body armor; large capacity magazines; and ammunition.

Crimes charged in the indictments include drug trafficking, conspiracy to distribute controlled substances, and conspiracy to commit money laundering offenses.

“This group was flooding our community with methamphetamine, cocaine, fentanyl and prescription pills—drugs that tear families apart and put lives at risk,” said Acting U.S. Attorney Andrew Haden. “Thanks to this law enforcement effort, we’re taking a major step in making our streets safer and holding traffickers accountable.”

“This case is a direct hit against a dangerous drug trafficking network that has been flooding our communities with deadly narcotics,” said Special Agent in Charge of HSI San Diego Shawn Gibson. “Let this serve as a stern warning to those looking to profit from trafficking illicit substances -We are seeking to dismantle these criminal organizations and committed to bringing all of those involved to justice.”

Escondido Police Lieutenant Ryan Hicks stated, “The Escondido Police Department works aggressively to identify and hold accountable anyone who chooses to participate in the poisoning of our community through illicit fentanyl distribution. We can successfully conduct these investigations through crucial support from the U.S. Attorney’s Office and our other federal partnerships.”

“The San Diego Sheriff’s Office has dedicated personnel and resources to the Fentanyl Abatement Suppression Team (FAST) since it began,” said San Diego County Sheriff Kelly Martinez. “We value the collaboration with our federal, state and local partners to combat the fentanyl crisis in San Diego. These enforcement efforts increase the safety of our communities and save lives.” 

According to search warrants unsealed today, through numerous undercover operations and court-authorized wiretaps, agents conducted a number of controlled purchases and traffic stops of personal vehicles. These wiretap intercepts showed that defendants Hector Armando Espinoza and Demetrius Collins, AKA “Demo” held leadership roles in the organization and coordinated the distribution of kilogram quantities of methamphetamine and fentanyl.

In January 2024, an undercover agent conversed with Collins about purchasing methamphetamine and fentanyl, according to the search warrants. Collins agreed to sell the undercover agent four pounds of methamphetamine and 1,500 fentanyl pills for $10,500. Collins directed the agent to send the money to Alexis Amezquita’s address. Several days later, Collins retrieved the money from Amezquita’s mailbox. Collins then mailed a package to the undercover agent that contained approximately four pounds of methamphetamine and a half pound of fentanyl pills that were provided by Espinoza.

In February 2024, Collins agreed to sell the undercover agent five pounds of methamphetamine and 5,000 fentanyl pills for $20,000. Collins again retrieved the money from Amezquita’s mailbox and shipped the drugs, that were provided by Espinoza. The package was found to contain approximately 5.68 pounds of methamphetamine and 1.21 pounds of fentanyl pills.

Agents installed a tracking device on Espinoza’s car that he later discovered, according to the search warrants. Espinoza took the tracker off his car and put it on another random vehicle. Espinoza then began to rely heavily on others to distribute drugs on his behalf. During numerous wiretap intercepts, agents heard Espinoza set up drug sales with customers and then direct others such as Detavius Jones Corteze, AKA “Tay Tay,” Tracie Shean, and Collins to meet with the customers and distribute them on his behalf.

This case is being prosecuted by Assistant U.S. Attorneys Sean Van Demark and Sarah Akhtar and Special Assistant U.S. Attorney Sterling Winchester. Special agents and task force officers with the Fentanyl Abatement and Suppression Team (FAST) led this investigation.

DEFENDANTS                                             Case Number 25cr0628-JAH                           

Hector Armando Espinoza                             29                                                                               Escondido, CA

Demetrius Collins, AKA “Demo”                  34                                                                                 Escondido, CA

Rigoberto Agraz, AKA “Rigo”                      31                    Escondido, CA

Detavius Jones Corteze, AKA “Tay Tay”      21                    Escondido, CA

Oscar Abeleida                                               26                    Cardiff, CA

Bradly Tran                                                     21                    San Diego, CA

Jason Hai Duong                                             20                    Irvine, CA

Alexis Amezquita                                           26                    Escondido, CA

Tracie Shean                                                   51                    Escondido, CA

Oscar Martinez                                               32                    National City, CA

Evelyn Janet Caballero                                   31                    Escondido, CA

Brianna Isabel Martinez                                 21                    Oceanside, CA

Carlos Vargas                                                 29                                                                               Escondido, CA

Celia Veronica Espinoza                                46                    Escondido, CA

SUMMARY OF CHARGES

Conspiracy to Distribute Controlled Substances - Title 21, U.S.C., Sections 841(a)(1), (b)(1), and 846

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

Distribution of Controlled Substances – Title 21, U.S.C., Sections 841(a) and (b)(1)

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

Distribution of Controlled Substances – Title 21, U.S.C., Sections 841(a) and (b)(1)

Maximum penalty: Forty years in prison with a mandatory minimum of five years and a $5 million fine

Distribution of Controlled Substances – Title 21, U.S.C., Sections 841(a) and (b)(1)

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

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

Maximum penalty: Twenty years in prison and a fine of not more than $500,000 or twice the value of the property involved in the transaction, whichever is greater

DEFENDANTS                                             Case Number  25cr0626-JAH

Juan Carlos Gallegos, AKA “Donut”             25                                                                               Escondido, CA

Yatzel Hernandez                                           34                                                                                 Escondido, CA                    

SUMMARY OF CHARGES

Conspiracy to Distribute Controlled Substances - Title 21, U.S.C., Sections 841(a)(1), (b)(1), and 846

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

INVESTIGATING AGENCIES

HSI San Diego

Escondido Police Department

US Postal Inspection Office

San Diego Sheriff’s Department

U.S. Customs and Border Protection

U.S. Border Patrol

U.S. Marshall’s Service

Drug Enforcement Administration

California Department of Justice

San Diego Imperial Valley High Intensity Drug Trafficking Area

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

HSI San Diego FAST is a multiagency task force comprising state, local, and federal partners and was first established in August 2022 focusing on the disruption and dismantlement of criminal organizations that smuggle and distribute fentanyl within San Diego County. HSI’s FAST targets fentanyl smuggling and distribution networks to counter the rising overdose rate and decrease the availability and accessibility of fentanyl.

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.

This investigation is part of Operation Take Back America, a nationwide initiative that marshals the full resources of the Department of Justice to repel the invasion of illegal immigration, achieve the total elimination of cartels and transnational criminal organizations (TCOs), and protect our communities from the perpetrators of violent crime. [use if applicable] Operation Take Back America streamlines efforts and resources from the Department’s Organized Crime Drug Enforcement Task Forces (OCDETFs) and Project Safe Neighborhood (PSN).

High Intensity Drug Trafficking Areas (HIDTA) program, created by Congress with the Anti-Drug Abuse Act of 1988, provides assistance to Federal, state, local, and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. This grant program is administered by the Office of National Drug Control Policy (ONDCP). There are currently 33 HIDTAs, and HIDTA-designated counties are located in 50 states, as well as in Puerto Rico, the U.S. Virgin Islands, and the District of Columbia.

SAN DIEGO – Jonathan Barba and Abraham Gomez-Rodriguez were sentenced in federal court today to 51 months and 37 months, respectively, for assaulting and stabbing a fellow inmate at the federal jail downtown on orders from a Mexican Mafia gang associate.

According to the publicly-filed documents in the case, Barba, Gomez-Rodriguez and the victim in the case were all inmates at the Metropolitan Correction Center. On March 27, 2024, Barba came up from behind the victim and stabbed him repeatedly with a metal shank while Gomez-Rodriguez held the victim’s arms so he could not escape or defend himself. When the victim broke free and ran away, Gomez-Rodriguez chased and struck him numerous times.

The victim was stabbed in the abdomen, neck, head and eye area. One of the stab wounds was dangerously close to the victim’s eyeball. The victim was left lacerated, bloodied, bruised and had to be taken to the hospital.

After the assault, Barba and Gomez-Rodriguez admitted to the victim that they assaulted him to please another inmate named “Alex,” who was a “shot caller” for the Mexican Mafia. Below is a photo of the shank that was used to repeatedly stab the victim:

Barba has a criminal history that involves domestic violence and drug importation. In 2014, he was convicted of first-degree domestic battery in Nevada and was sentenced to 60 days in jail and community service. In 2022, he was convicted of importation of methamphetamine and fentanyl in the Southern District of California. For that offense, Barba was sentenced to 37 months in federal prison. He was serving his federal drug trafficking sentence when he violently assaulted and stabbed the victim-inmate.

Gomez-Rodriguez was convicted in 2022 of possession with the intent to distribute methamphetamine and heroin in the Southern District of California. He was sentenced to 26 months in federal prison.  While he was serving his federal sentence, Gomez-Rodriguez, along with Barba, violently attacked the victim-inmate. The judge ordered that the sentences handed down be served consecutive to their existing sentences.

“Violence has no place in our correctional facilities,” said Acting U.S. Attorney Andrew Haden. “We are fully committed to taking every legal action available to protect the safety and well-being of all inmates and to hold violent criminals accountable.”

“I want to applaud the FBI San Diego Violent Crime Task Force and MCC Special Investigations Unit’s commitment and dedication to hold the defendants accountable for their role in the violent and coordinated attack,” said Acting Special Agent in Charge Houtan Moshrefi. “We remain steadfast in working with our partners to protect the integrity of our correctional institutions.”

This case is being prosecuted by Assistant U.S. Attorneys Andrew Sherwood and Shital Thakkar.

DEFENDANTS                                             Case Number 24cr843-AJB                            

Jonathan Barba                                               Age: 32                                   Victorville, CA

Abraham Gomez-Rodriguez                          Age: 26                                   Imperial Beach, CA

SUMMARY OF CHARGES

Assault With a Dangerous Weapon within Special Maritime and Territorial Jurisdiction– Title 18, U.S.C., Section 113(a) and (7)(3)

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

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Federal Bureau of Prisons

SAN DIEGO – Federal prosecutors in the Southern District of California filed more than 100 border-related cases this week, including charges of transportation of illegal aliens, reentering the U.S. after deportation, deported alien found in the United States, importation of controlled substances, and assault on a federal officer.

The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).

In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.

A representative sample of border-related arrests this week includes:

• On March 8, 2025, Gabriel Yeraldi Gaona, a United States citizen, was arrested and charged with alien smuggling after he was caught attempting to smuggle two citizens of Mexico into the United States. Following his arrest, Gaona admitted that he crossed into the United States from Mexico by climbing over a ladder that was placed on the first border fence.  The two Mexican citizens he was arrested with admitted that they are citizens of Mexico without lawful documents allowing them to enter the United States.
• On March 9, 2025, Antonio Lerma Cervantes, a Mexican citizen, was arrested on drug importation charges when he attempted to cross into the U.S. from Mexico at the Otay Mesa Port of Entry with more than 60 pounds of cocaine hidden in the rear seat and quarter panels of his vehicle.
• On March 12, 2025, Edy Osorio-Berrelleza, a citizen of Mexico, was arrested after he was caught attempting to transport another citizen of Mexico within the United States. After running away from a Border Patrol Agent, Osorio allegedly threw rocks at both a Customs and Border Protection helicopter and also towards Border Patrol agents.  Following his arrest, Osorio admitted that he was going to be paid for the smuggling activity, and that he threw rocks at the helicopter and the agents once they were close to him.  He is currently charged with alien smuggling and assault on a federal officer.

Federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.

The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.

Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

NEWS RELEASE SUMMARY – March 11, 2025

SAN DIEGO – George Joseph Wellinger II pleaded guilty in federal court today, admitting he intentionally targeted a member of the LGBTQ community and threatened her with violence via email. 

According to his plea agreement, the defendant admitted that he intentionally selected this victim as the object of his threat based on the victim’s actual or perceived sexual orientation, and because of the defendant’s animus toward members of the LGBTQ community.

According to court documents, the victim was targeted after being interviewed for a KTLA news report about a hate-inspired murder in Lake Arrowhead in August 2023.

According to the plea agreement, the threatening email called the victim “another alphabet clown that wants to take a dirt nap, too,” and included a link to the KTLA news report which featured the victim and others discussing the murder of a Lake Arrowhead business owner who had been gunned down for hanging a Pride flag in her business.

The email continued: “We know what you look like and know where are you are....only a matter of time....Love it....get ur ghey on sister....scissor it up....we coming for ur rainbow azz. Click Click!!!

On August 18, 2023, Laura Ann Carleton, a known ally to the LGBTQ+ community, was murdered for hanging a pride flag outside her store. Carleton was shot by Travis Ikeguchi, who fled the scene and was later shot and killed by law enforcement. On August 30, 2023, KTLA, a local Los Angeles news station, wrote an article about Carleton’s death.

Wellinger pleaded guilty to Interstate Threatening Communication with a special finding that he targeted his victim because of her sexual orientation.

Wellinger is scheduled to be sentenced on June 9, 2025, at 10 a.m. before U.S. District Judge Linda Lopez.

If you or anyone you know believes you have been the victim of a hate crime, please contact the FBI at www.tips.fbi.gov. Assistant U.S. Attorneys Jacqueline M. Jimenez and Alicia Williams are prosecuting this case.

DEFENDANT                                               Case Number: 24-CR-1591                                      

George Joseph Wellinger II                            Age: 49                                   San Diego, CA

CHARGE

Transmitting a Threatening Communication - Title 18 U.S.C., § 875(c)

Maximum penalty: Five years in prison

INVESTIGATING AGENCY

Federal Bureau of Investigation

For more information and resources about the department’s work to combat hate crimes, visit https://www.justice.gov/hatecrimes.

SAN DIEGO – Federal prosecutors in the Southern District of California filed more than 100 border-related cases this week, including charges of transportation of illegal aliens, reentering the U.S. after deportation, deported alien found in the United States, and importation of controlled substances.

The U.S. Attorney’s Office for the Southern District of California is the fourth-busiest federal district, largely due to a high volume of border-related crimes. This district, encompassing San Diego and Imperial counties, shares a 140-mile border with Mexico. It includes the San Ysidro Port of Entry, the world’s busiest land border crossing, connecting San Diego (America’s eighth largest city) and Tijuana (Mexico’s second largest city).

In addition to reactive border-related crimes, the Southern District of California also prosecutes a significant number of proactive cases related to terrorism, organized crime, drugs, white-collar fraud, violent crime, cybercrime, human trafficking and national security. Recent developments in those and other significant areas of prosecution can be found here.

A representative sample of border-related arrests this week, includes:

• Mexican nationals Isay Edel Ramos-Chaparro and Omar Alvarado-Ignacio were arrested March 4, 2025, by El Centro-based U.S. Border Patrol agents and charged with crimes relating to their alleged attempt to cross illegally into the United States on motorcycles through a breach in the border fence in Mexicali. Both defendants had previously been deported after entering the United States illegally.
• On March 6, 2025, Jason Kristopher Lowe attempted to enter the United States from Mexico via the San Ysidro Port of Entry driving a BMW X5, bearing California plates.  Lowe was arrested when two individuals, both of whom admitted to being citizens of China without lawful documents allowing them to enter the United States, were found inside a secret compartment in the undercarriage of the BMW.
• Fernando Medina Rodriguez, Gustavo Camacha Medina and Carlos Cardenas Medina – all drivers of separate tractor-trailers attempting to cross into the U.S. from Mexico at the Otay Mesa Port of Entry – were arrested on March 4, 2025, on drug importation charges. According to a federal complaint, all three were sent to secondary inspection around the same time, where Customs and Border Protection officials found hidden compartments containing a total of approximately 171 pounds of cocaine.

Federal law enforcement has focused immigration prosecutions on undocumented aliens who are engaged in criminal activity in the U.S., including those who commit drug and firearms crimes, who have serious criminal records, or who have active warrants for their arrest. Federal authorities have also been prioritizing investigations and prosecutions against drug, firearm, and human smugglers and those who endanger and threaten the safety of our communities and the law enforcement officers who protect the community.

The immigration cases were referred or supported by federal law enforcement partners, including Homeland Security Investigations (HSI), Immigration and Customs Enforcement’s Enforcement and Removal Operations (ICE ERO), Customs and Border Protection, U.S. Border Patrol, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the U.S. Marshals Service (USMS), and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with the support and assistance of state and local law enforcement partners.

Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

SAN DIEGO – George Demos, then-vice president at San Diego-based Acadia Pharmaceuticals Inc., pleaded guilty in federal court today to illegally selling 60,000 company shares, thus avoiding a $1.3 million loss by acting on insider knowledge about the labeling process for a prescription drug with the Food and Drug Administration (FDA).

Demos, a medical doctor who was the Vice President of Drug Safety and Pharmacovigilance and member of the drug label team at publicly-traded Acadia, admitted that he was able to avoid the loss by dumping his shares just two hours before negative news about the labeling process became public.

Through his positions, Demos had access to material information belonging to Acadia, including the drug approval and labeling process with the FDA, before the information was released to the investing public. As an employee of Acadia, Demos was subject to an insider trading policy that prohibited trading in company stock on the basis of material nonpublic information.

As of 2021, Acadia’s only fully FDA-approved pharmaceutical product was Pimavanserin, sold under the brand name Nuplazid, for the treatment of Parkinson’s disease psychosis. Demos admitted that in 2020, he learned inside information that Acadia had applied for FDA approval for the expansion of the label for Nuplazid to treat dementia-related psychosis. Expanding the label was expected to generate significant revenue for Acadia because it would allow the drug to treat a larger patient population.

Demos also admitted, however, that in March 2021, he learned additional inside information that discussions with the FDA had stalled, indicating a problem with the label. Acting on that inside information, Demos sold more than 60,000 shares of Acadia for $2,833,856.15 - less than two hours before Acadia issued a press release announcing deficiencies in its drug application with the FDA, preventing labeling discussions. Demos admitted that based on the inside information, he sold his Acadia stock for $46.61 per share, avoiding the 45 percent drop in stock price, to $25.02, that occurred the next day after the press release was issued to the public. Through this illegal trading, Demos avoided a loss of $1,313,263.

As part of his plea, Demos agreed to forfeit $1,313,263 – the loss he avoided through his insider trading.

Demos is scheduled to be sentenced on May 30, 2025, at 9 a.m. before U.S. District Judge Robert Huie.

This case is being prosecuted by Assistant U.S. Attorney Janaki G. Chopra.

DEFENDANT                                               Case Number 25cr00682                 

George Demos                                                Age: 64                                   San Diego, CA

SUMMARY OF CHARGES

Securities Fraud – 15 U.S.C. § 78j(b), 78ff; 17 CFR § 240.10b-5

Maximum penalty – Twenty years in prison and fine of $5 million or twice the gross gain or loss

INVESTIGATING AGENCY

Federal Bureau of Investigation

SAN DIEGO – Geovany Andres Rojas, a suspected cocaine trafficker also known as Araña, was indicted by a federal grand jury today in a superseding Indictment with a new count of Narco-Terrorism.

Rojas was previously charged with one count of International Conspiracy to Distribute Cocaine. In that charge, Rojas is alleged to have agreed, in Colombia, Ecuador, and elsewhere, to distribute cocaine knowing that it would be unlawfully imported into the United States. Today, the United States added a second charge of Narco-Terrorism that alleges that Rojas knowingly and intentionally provided anything of pecuniary value to persons and organizations he knew were engaged in terrorist activity and terrorism.

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

This case is being prosecuted by Assistant U.S. Attorneys Kyle B. Martin and Ashley E. Goff.

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

DEFENDANTS                                             Case Number 25cr0442-H                                

Giovany Andres Rojas, aka Araña                 Age: 43                                           Colombia

SUMMARY OF CHARGES

International Conspiracy to Distribute Cocaine – Title 21, U.S.C., Sections 959, 960, and 963

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

Narco-Terrorism – Title 21, U.S.C., Sections 960a and 841

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

INVESTIGATING AGENCIES

Drug Enforcement Administration

Federal Bureau of Investigation

HONOLULU, Hawaii – Former Honolulu City Attorney Donna Leong and former Honolulu Police Commission Chair Max Sword pleaded guilty in federal court today, admitting that they conspired to illegally pay then-Honolulu Police Chief Louis Kealoha $250,000 from city coffers without the approval of the Honolulu City Council while he was under federal investigation for corruption.

Additionally, former Honolulu City Manager Roy Amemiya entered a deferred prosecution agreement for his role in the same conspiracy.

The defendants were immediately sentenced to time served and were ordered to pay $250,000 in restitution to the city.

The resolution of these cases marks the end of a decade-long series of public corruption prosecutions in Honolulu, which began with the investigation and conviction of Chief Kealoha and former Honolulu prosecutor Katherine Kealoha.

According to court documents, Leong, Sword, and Amemiya admitted that they conspired in their official capacities as Honolulu city officials to reach a settlement agreement for the retirement of then-Police Chief Kealoha while he was under federal investigation for corruption. The defendants also paid Kealoha $250,000 from the city’s purse without first seeking and obtaining the approval of the Honolulu City Council, which was required by city laws. Leong, Sword, and Amemiya admitted that their decision not to seek and obtain City Council approval violated the law and deprived the citizens of Honolulu of their due process rights under the Fifth and Fourteenth Amendments of a hearing before, and approval by, their elected City Council for the use of city funds.

Following their guilty pleas, Leong and Sword were sentenced by U.S. District Judge Leslie E. Kobayashi to time served and one year of supervised release. During today’s hearing, Judge Kobayashi characterized Leong and Sword’s actions as “truly misguided” and reprimanded them for exercising a “complete disregard for the separation of powers” by not presenting the settlement agreement to City Council. She further stated that their actions caused “serious harm” to the community of Honolulu.

As part of a deferred prosecution agreement, in addition to admitting his involvement in the criminal conspiracy, Amemiya’s agreement requires him to comply with certain conditions for a period of two years, including completion of 200 hours of community service and restriction from holding public office. Per the terms of his deferred prosecution agreement, if he complies in full for two years, the charges against Amemiya will be dismissed.

Importantly, all three defendants agreed to pay restitution in the amount of $250,000 to the City and County of Honolulu—the exact amount of taxpayer money paid to then-Chief Kealoha as part of the unlawful settlement agreement.

The conclusion of the criminal case against Leong, Sword, and Amemiya is the last in a decade-long series of public corruption prosecutions in Hawaii conducted by the United States Attorney’s Office for the Southern District of California, which prosecuted these cases after the District of Hawaii was recused. These prosecutions have charged and convicted over a dozen individuals, most of whom were public officials or persons of prominence in Honolulu, including the Kealohas, Honolulu police officers, and anesthesiologist Rudy Puana, Katherine Kealoha’s brother. The resolution of the charges against Leong, Sword, and Amemiya marks a historic end to this journey of seeking justice for the citizens of Honolulu.

“After a decade-long battle against public corruption in Hawaii, we have successfully brought numerous cases to a close. This achievement is a testament to the unwavering dedication of our law enforcement partners, the prosecutors, our legal support staff, and the community,” said Acting U.S. Attorney Andrew R. Haden. “Together, we have demonstrated that no one is above the law.  Hopefully, our efforts have also restored some faith in law enforcement and local government for the Hawaiian community.  But let these cases also be a reminder, the fight against corruption must never end. The Department of Justice has a proud history and stands ready to fight for the principles of justice and fairness for all.”

“The cases against these three defendants are the last among a decade-long series of public corruption prosecutions in Hawaii,” said FBI Honolulu Special Agent in Charge David Porter. “I am proud of the agents and prosecutors who devoted years to these investigations—their tireless efforts reflect our continued commitment to root out corruption in our communities.”

This case and the series of public corruption cases brought over the last decade were led by Special Attorneys Michael G. Wheat, Joseph J.M. Orabona, Janaki G. Chopra, Colin M. McDonald and Andrew Y. Chiang.

DEFENDANTS                                             Case Number 21cr00142-LEK                                

Donna Yuk Lan Leong                                   Age: 69                                   Honolulu, HI

Max John Sword                                             Age: 73                                   Honolulu, HI

Roy Keiji Amemiya, Jr.                                  Age: 69                                   Honolulu, HI

SUMMARY OF CHARGES

Conspiracy to Deprive Rights under Color of Law – Title 18, U.S.C., Sections 371 and 242

Maximum penalty: One year in prison and $100,000 fine

INVESTIGATING AGENCY

Federal Bureau of Investigation

Honolulu Division

SAN DIEGO – Rodolfo Benjamin Silva, a prolific cocaine, methamphetamine, and fentanyl trafficker who called himself the “King of Coke,” was sentenced in federal court today to 17.5 years in prison for distributing large quantities of illicit drugs in the U.S. and for facilitating the movement of cartel hitmen into the United States.

At today’s hearing, prosecutors described Silva as a long-time San Diego-based drug distributor who worked directly with Mexican counterparts to receive narcotic shipments from Mexico. According to his plea agreement, in October 2022, Silva provided a drug courier with 114 pounds of methamphetamine and a kilogram of fentanyl for transport to Indianapolis, but it was interdicted in Oklahoma.

Silva also admitted in his plea agreement to threatening, directing or using violence as part of his drug trafficking activities. Prosecutors told the court today that Silva assisted in bringing assassins known as “sicarios” from Mexico into the San Diego area for cartel enforcement operations. On one occasion, Silva hired a sicario from Mexico to come to San Diego where that individual attempted to fatally shoot one of Silva’s rivals, prosecutors said.

This investigation was led by FBI and DEA in San Diego with integral assistance from the U.S. Attorney’s Office in the Southern District of Indiana and FBI’s Indianapolis Field Office.

This case is being prosecuted by Assistant U.S. Attorney Ashley Goff.

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

DEFENDANT                                               Case Number 23CR02513-WQH                            

Rodolfo Benjamin Silva, aka “Rudy”            Age: 44                       San Diego, CA

SUMMARY OF CHARGES

Conspiracy to Distribute Cocaine – Title 21, U.S.C., Sections 841(a)(1) and 846

Maximum penalty: Mandatory minimum 10 years and up to life in prison, $10 million fine

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Drug Enforcement Administration

SAN DIEGO – Denny Thakorbhai Bhakta, who was convicted by a federal jury in October 2024 of securities fraud, bank fraud and money laundering in connection with a $35 million swindle that left his own elderly uncle bankrupt, was sentenced in federal court today to 235 months in custody. Bhakta was convicted of all 25 charges after a two-week trial.

The evidence at trial showed Bhakta solicited investors in his companies Fusion Hotel Management LLC and Fusion Hospitality Corporation (collectively “Fusion”). Between at least 2016 and up to 2021, Bhakta falsely told investors that Fusion routinely acquired discounted blocks of hotel rooms from Hilton, which Fusion then sold to United Airlines at a higher price for a significant profit.

To support these lies, Bhakta provided fabricated bank statements, fake contracts, and profit and loss statements purporting to show millions in revenue and profit. Instead of buying blocks of hotel rooms with investors’ funds, however, Bhakta used the money he obtained from investors for gambling, to make Ponzi-style payments to other investors, and to pay for Bhakta’s personal expenses, including luxury vehicles.

According to court documents, Bhakta targeted friends, family members and close acquittances during the multi-year fraud scheme. Among the victims was Bhakta’s uncle, who was swindled out of $4.5 million, and who testified during the trial that he came to the U.S. as an immigrant with a suitcase and $8 in his pocket, and because of the defendant, he “lost everything he had worked for in 57 years in America. Everything.”

Bhakta’s other victims included a childhood friend who lost hundreds of thousands of dollars; his former boss and his wife; a friend of his family who lost $1.6 million; a high school classmate and her father who together lost more than $800,000; and an 88-year-old investor who lost $50,000.

During the trial, prosecutors introduced evidence that Bhakta was flown to Las Vegas on the Wynn Las Vegas private jet. And in just one 7.5-hour gambling binge in 2018, Bhakta lost $1 million at the casino. Through a trove of casino records, prosecutors demonstrated how Bhakta repeatedly took investors’ money straight to casinos and gambled (and lost) millions of investor money.

“I haven’t seen a case quite like this,” said U.S. District Judge Janis L. Sammartino, who found Bhakta’s conduct “could not have been more deliberate [and] could not have been more calculated.”  In pronouncing the 235-month prison sentence, Judge Sammartino noted Bhakta’s only apparent motive was “greed and gambling,” his victims included his own friends and relatives, and he showed “nothing resembling remorse” for his criminal conduct that spanned years.

“This defendant didn’t just betray investors—he callously swindled his own family and closest friends, leaving his elderly uncle bankrupt,” said Acting U.S. Attorney Andrew Haden. “Instead of safeguarding their hard-earned money, he funneled millions straight to casinos, gambling away their futures along with his own. His lies, deceit, and reckless greed have finally caught up to him. Today’s sentence makes clear that those who gamble with other people’s trust and livelihoods will face the consequences.”

“Denny Bhakta orchestrated an elaborate investment fraud scheme that caused extensive financial harm to unsuspecting victims, including close family and friends, all for his own personal gain,” said FBI Special Agent in Charge Stacey Moy.  “Today’s sentence holds him accountable for his greed and deceitful conduct, bringing justice to the victims he exploited.”

According to the government’s sentencing materials, in 2020, Bhakta doubled down on the fraud. Through the Paycheck Protection Program (“PPP”), Bhakta applied for 18 separate PPP loans totaling $4.4 million. To fraudulently obtain the PPP loans, Bhakta created fake W-2 and other IRS documents and used the names and personally identifying information of his victim-investors to claim them as employees of Fusion and other entities under Bhakta’s control.  Bhakta used the more than $4.4 million he received in PPP loans to keep the Ponzi scheme going and to continue gambling and losing money at casinos.

This case is being prosecuted by Assistant U.S. Attorneys Kevin Mokhtari and Eric Olah.

DEFENDANTS                                             Case Number 21cr3352-JLS                            

Denny Thakorbhai Bhakta                             Age: 42                                   San Diego, CA

SUMMARY OF CHARGES

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

Maximum penalty:  Twenty years in prison and $5,000,000 fine

Bank Fraud—Title 18, U.S.C., Section 1344(2)

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

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

Maximum penalty: Ten years in prison and fine twice the amount of the criminally derived property involved in the transaction

INVESTIGATING AGENCY

Federal Bureau of Investigation

SAN DIEGO – Marcus Ray Chavez was sentenced in federal court today to 262 months in prison for providing the fentanyl pills that resulted in the fatal overdose of a 15-year-old girl in 2022.

According to court documents, on at least four occasions between September and November 2022, Chavez provided the girl with “M30” pills he knew were counterfeit and contained fentanyl, in exchange for sex with the girl. Chavez also admitted to knowing the girl was underage. On November 12, 2022, she fatally overdosed from pills that Chavez provided.

According to the government’s sentencing memo, the victim was in the ninth grade at the time of her death. Family and friends described her as an energetic girl who “brightened any room she entered” and who hoped to one day own her own hair salon.

“Any loss of life is tragic,” said Acting U.S. Attorney Andrew Haden. “The loss of a child is particularly devastating. While nothing can bring this lost child back, we are committed to holding this dealer and others like him accountable.”

“Mr. Chavez traded fake fentanyl pills for sex with a vulnerable child,” said DEA Special Agent in Charge Brian Clark. “Fentanyl’s grip tightens the chains of exploitation. As her family grieves and we honor her memory, Mr. Chavez now has over 20 years to remember his actions stole an innocent life.”

“The San Diego Police Department mourns with the family and friends of the victim in this case,” said San Diego Police Chief Scott Wahl. “We must stop the senseless loss of life due to fentanyl overdoses and stand together to hold dealers accountable for the destruction they cause.”

Fentanyl remains a serious threat. The latest DEA laboratory testing, announced last fall, indicated that five out of 10 pills tested contained a potentially deadly dose of fentanyl.

This case is being prosecuted by Assistant U.S. Attorney Katherine McGrath. Former Assistant U.S. Attorney Owen Roth provided substantial assistance in this case.

DEFENDANT                                               Case Number 23cr1354                                               

Marcus Ray Chavez                                       Age: 30                                   Bonita, CA

SUMMARY OF CHARGES

Sex Trafficking of a Minor – Title 18, U.S.C., Sections 1591(a)(1), (b)(2)

Maximum penalty: Mandatory minimum 10 years in prison, maximum life in prison and $250,000 fine

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

Maximum penalty: Mandatory minimum 20 years in prison, maximum life in prison and $1 million fine

INVESTIGATING AGENCIES

Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10)

San Diego Police Department

San Diego County District Attorney’s Office

Homeland Security Investigations

La Mesa Police Department

National Guard Counterdrug Task Force

California Department of Health Care Services

SAN DIEGO – Jonathan Tyler Gauthier pleaded guilty in federal court today, admitting that he supplied the fentanyl that caused the deaths of S.M.G. on September 7, 2022, and J.A.W. on December 24, 2022.

According to the plea agreement, on September 7, 2022, at approximately 5:50 a.m., San Diego Police officers responded to a residence in Hillcrest. When officers arrived, they found 24-year-old S.M.G. deceased in his upstairs bedroom. A review of S.M.G.’s phone revealed a lengthy history of drug purchases from Gauthier, starting in at least 2019.

According to evidence collected from cell phones and witness interviews, S.M.G. traveled from his home in Hillcrest to the defendant’s location in La Jolla in the late afternoon on Sept. 6, 2022. Gauthier warned S.M.G. that he was selling a potent batch of fentanyl. At 8:49 p.m., Gauthier texted S.M.G.: “Ur being careful.” At 9:12 p.m., S.M.G. responded “Yes.” S.M.G. was not seen alive after he went to his bedroom at 9:30 p.m.

On December 24, 2022, at approximately 4:29 a.m., San Diego Police officers responded to a residence in the North Clairemont area of the City of San Diego. When officers arrived, firefighters were attempting to revive J.A.W., a 27-year-old male. J.A.W. was pronounced dead at 5:02 a.m.

A family member had last seen J.A.W. alive on December 23, 2022, at 9:30 p.m., and she had checked on him at 4 a.m. when she noticed the light on his bedroom. Next to his body were a piece of foil with burnt residue on it and a white pipe with a charred blue pill on its tip. On the floor next to J.A.W.’s bed was a small, clear bag that contained eight blue pills, each marked with “M30.” Subsequent testing determined that the pills contained fentanyl.

According to evidence, including information from cell phones, social media and witness interviews, J.A.W. began to message the defendant on December 18, 2022, seeking to purchase “blues,” which are counterfeit pills often containing fentanyl. Over the course of the next four days, J.A.W. and Gauthier messaged about the purchase until settling on a price of $80 for 10 blues. On December 23, 2022, J.A.W. arranged to meet at Gauthier’s storage unit to complete the purchase. J.A.W. left his family’s holiday party at 2 p.m., picked up the drugs at the storage unit and returned home at 4 p.m.

Gauthier’s sentencing is scheduled for May 30, 2025, at 9 a.m. before U.S. District Judge Janis L. Sammartino.

This case is being prosecuted by Assistant U.S. Attorneys Adam Gordon and David Fawcett.

Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team and the Fentanyl Abatement and Suppression Team (FAST) jointly led this investigation.

The Overdose Response Team is an ongoing effort by the U.S. Attorney’s Office, the San Diego County District Attorney’s Office, the Drug Enforcement Administration, Homeland Security Investigations, the San Diego Police Department, the La Mesa Police Department, National Guard Counterdrug Task Force and the California Department of Health Care Services to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created the Overdose Response Team as a response to the increase in overdose deaths in San Diego County.

HSI San Diego FAST is a multiagency task force comprising state, local, and federal partners and was first established in August 2022 focusing on the disruption and dismantlement of criminal organizations that smuggle and distribute fentanyl within San Diego County. HSI’s FAST targets fentanyl smuggling and distribution networks to counter the rising overdose rate and decrease the availability and accessibility of fentanyl.

DEFENDANTS                                             Case Number 24-CR-1383-JLS                               

Jonathan Tyler Gauthier                                 Age: 26                                   San Diego, CA

SUMMARY OF CHARGES

Distribution of Fentanyl

21 U.S.C. § 841(a)(1)

Maximum penalty: Twenty years in prison (per count)

INVESTIGATING AGENCIES

Drug Enforcement Administration

Homeland Security Investigations

San Diego Police Department

California National Guard Counterdrug Task Force

California Department of Health Care Services

La Mesa Police Department

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.

SAN DIEGO – Danny Nunez pleaded guilty in federal court today, admitting that he supplied the fentanyl that caused the death of a 25-year-old San Diego woman identified in court records as “L.P.” on September 11, 2024.

According to the plea agreement, on September 12, 2024, the young woman’s parents found her deceased in her bedroom. Cell phone evidence and witness statements show that the victim purchased fentanyl from the defendant on September 11, 2024, which she later consumed, resulting in her death.

On October 3, 2024, members of the Homeland Security Investigations (HSI) San Diego – Fentanyl Abatement and Suppression Team (FAST), in conjunction with the Escondido Police Department, conducted an enforcement operation resulting in the arrest of the defendant after he attempted to sell two baggies of fentanyl, weighing 7.67 grams and 1.23 grams, to undercover agents.

Nunez is scheduled to be sentenced on May 19, 2025, at 9:30 a.m. before U.S. District Court Judge Thomas J. Whelan.

This case is being prosecuted by Assistant U.S. Attorney Sean Van Demark.

HSI San Diego FAST is a multiagency task force comprising state, local, and federal partners and was first established in August 2022 focusing on the disruption and dismantlement of criminal organizations that smuggle and distribute fentanyl within San Diego County. HSI’s FAST targets fentanyl smuggling and distribution networks to counter the rising overdose rate and decrease the availability and accessibility of fentanyl.

DEFENDANT                                               Case Number 24-CR-2295-W                                  

Danny Nunez                                                 Age: 25                                   San Diego, CA

SUMMARY OF CHARGES

Attempted Distribution of Fentanyl

21 U.S.C. § 841(a)(1)

Maximum penalty: Twenty years in prison (per count)

INVESTIGATING AGENCIES

Homeland Security Investigations

Escondido Police Department

San Diego Imperial Valley High Intensity Drug Trafficking Areas

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

SAN DIEGO – Carey Alice Hernandez was sentenced in federal court today to 70 months in prison for intentionally setting fire to Off Road Warehouse to cover up the disappearance of more than $700,000 while she was in charge of company finances.

In April 2024, after a four-day trial, jurors found Hernandez guilty of malicious destruction of a building by means of fire, witness tampering and making false statements.

In late 2018, the owner of Off Road Warehouse, also known as ORW, which sold and installed automotive parts and gear for off-roading, decided to sell the business located at 7915 Balboa Avenue. The prospective purchaser conducted an audit of ORW, which revealed that between January 2015 and March 2019, while Hernandez was serving as bookkeeper and controller in charge of the company books and records, $744,621 had gone missing from the company.

The jury found that in the early morning hours of March 28, 2019, Hernandez started the fire at Off Road Warehouse, causing the building to burn to the ground.

“This defendant intentionally set a dangerous inferno in what appears to have been an attempt to conceal a massive theft. And then she leaned on her minor daughter to try and cover up her crimes,” said Acting U.S. Attorney Andrew Haden. “Fortunately, no one was physically hurt, but this devastating loss for ORW, and the extraordinary danger of intentionally setting a fire, demanded accountability. And today, justice was served.”

At today’s hearing, U.S. District Judge Jinsook Ohta described the defendant’s actions as “wanton, deliberate and destructive” and “a very dangerous crime” that put firefighters at risk. She noted the crime was made even worse when she asked her daughter to lie for her.

According to evidence presented at trial, surveillance footage showed the defendant driving an SUV with dark rims near her home and the fire scene. The following day, she lied to federal agents and ORW employees, claiming her SUV had light rims. Video footage from the area contradicted her claims about the vehicles rims, leading to convictions for witness tampering and false statements.

ATF’s National Response Team (NRT) investigated this case in conjunction with San Diego’s Metro Arson Strike Team (MAST). The NRT is ATF’s mobile, rapid response team which investigates the cause and origin of large fires, explosions and bombings at the request of local public safety agencies.

“Arson crimes are not victimless,” said Acting ATF Los Angeles Field Division Special Agent in Charge Jose Medina. “These criminal acts destroy lives, property, and businesses.  In this case, the motive was greed—fire was used as a cover-up for criminal activity. ATF remains steadfast in its mission to bring arsonists to justice and ensure safer communities. We will relentlessly pursue and remove these offenders from society. I want to acknowledge the dedication of our National Response Team and San Diego’s Metro Arson Strike Team (MAST) for their work in determining the fire’s origin and cause.”

A hearing to determine the restitution that Hernandez owes the victims of her crimes is scheduled for March 14, 2025, at 2:30 p.m. before Judge Ohta.

This case is being prosecuted by Assistant U.S. Attorneys Matthew Brehm and Carl Brooker.

DEFENDANT                                               Case Number 22cr145-JO                                         

Carey Alice Hernandez                                  Age: 46                                   Rathdrum, Idaho

SUMMARY OF CHARGES

Malicious Destruction of Building by Means of Fire – Title 18, U.S.C., Section 844(i)

Maximum penalty: No less than five years in prison and no more than 20 years and $250,000 fine

Witness Tampering – Title 18, U.S.C., Section 1512(b)(3)

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

False Statements – Title 18, U.S.C., Section 1001(a)(2)

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

INVESTIGATING AGENCY

Bureau of Alcohol, Tobacco, Firearms and Explosives

SAN DIEGO – Odyssey Carrillo, a member of the Emerald Hills Bloods gang, was sentenced in federal court today to 168 months in prison for his role in a racketeering conspiracy involving coordinated violent crimes by street gangs.

Carrillo is the ninth and final member of the conspiracy to be sentenced. He pleaded guilty to Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity and Hobbs Act Robbery. According to court documents, the crimes committed by the enterprise included armed robbery, sex trafficking, prostitution, violence and other profit-driven illegal activities.

The defendants were charged with racketeering conspiracy - the statute’s original inspiration was to combat organized-crime syndicates and mobsters. But as criminal street gangs have become more sophisticated and prolific in their illicit business pursuits, this statute has become an effective tool to address all aspects of coordinated violent criminal conduct.

Previously sentenced defendants include Jerome Brunson, Cedric Jordan, Stephen Nathaniel Calhoun, Jr., Carl Moore, Maurice Johnson, Dajay Leon Scott, Taashawn Henderson and Sergio Valentin Louden.

In his plea agreement, Carrillo admitted that he joined the conspiracy that engaged in a pattern of racketeering activity that included robbery, prostitution and sex trafficking. Carrillo further admitted to committing racketeering activity himself, including two specific armed robberies.

Carrillo, Calhoun and Moore admitted to participating in the January 19, 2019, armed robbery of San Carlos Jewelers in San Diego and the February 11, 2019, armed robbery of the Bert Levi Family Jewelers in San Diego.

Calhoun also admitted to robbing the Medicine Shoppe in San Diego by gunpoint on May 20, 2019. Calhoun and Moore both admitted to being Lincoln Park Bloods (LPK) gang members; Carrillo admitted to being an Emerald Hills gang member, a Bloods-aligned street gang that often works cooperatively with LPK. Calhoun and Moore were sentenced by U.S. District Judge Cynthia Bashant to 176 months and 105 months in custody, respectively.

According to their plea agreements, in furtherance of the racketeering conspiracy, Jerome Brunson admitted to being an LPK member who participated in the November 19, 2019, armed robbery of a Jared’s jewelry store in National City. Judge Bashant sentenced Brunson to 57 months in custody. Dajay Scott and Sergio Louden admitted to being LPK members who robbed numerous women of their purses outside nail salons in January 2020. Judge Bashant sentenced Scott and Louden to 48 months and 72 months in custody, respectively.

Cedric Jordan, Maurice Johnson, and Taashawn Henderson admitted to being LPK members who, during the course and in furtherance of the conspiracy, engaged in sex offenses related to sex trafficking and transportation for purposes of prostitution. Judge Bashant sentenced Jordan, Johnson, and Henderson to 63 months, 60 months, and 58 months in custody, respectively.

“Every member of our community is put at risk when criminal street gangs engage in armed robberies, sex trafficking, and other violent criminal acts,” said Acting U.S. Attorney Andrew Haden. “This case is the result of outstanding teamwork and collaboration between our local and federal law enforcement partners. We will continue to hold these violent groups accountable, using the RICO tools at our disposal, to bring justice to crime victims and to make our community safer.”

“Today’s sentencing reflects the hard work, determination, and collaboration of multiple agencies to dismantle an organized crime conspiracy,” said FBI San Diego Special Agent in Charge Stacey Moy. “The violent crime and gang threats are too diverse, too dangerous, and too all-encompassing for any of us to tackle alone. FBI will continue to work with our partners to disrupt violent crime, human traffickers, and violent gangs whose criminal acts devastate our communities.”

This case is being prosecuted by Assistant U.S. Attorneys Mario J. Peia, Katherine E. A. McGrath, and Matthew Brehm.

DEFENDANTS                                             Case Number 21cr2909-BAS                           

Jerome Brunson                                              Age: 27                                   San Diego, CA

Cedric Jordan                                                  Age: 36                                   San Diego, CA

Stephen Nathaniel Calhoun, Jr.                      Age: 24                                   San Diego, CA

Carl Moore                                                      Age: 34                                   San Diego, CA

Maurice Johnson                                             Age: 34                                   San Diego, CA

Dajay Leon Scott                                            Age: 26                                   San Diego, CA

Taashawn Henderson                                      Age: 29                                   San Diego, CA

Sergio Valentin Louden                                  Age: 36                                   San Diego, CA

Odyssey Carrillo                                             Age: 23                                   San Diego, CA

SUMMARY OF CHARGES

Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity – Title 18, U.S.C., Section 1962(d)

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

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

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

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

Maximum penalty: Life in prison with a seven-year mandatory minimum and $250,000 fine

INVESTIGATING AGENCIES

Federal Bureau of Investigation

San Diego Police Department

San Diego Human Trafficking Task Force

San Diego County Sheriff’s Department

National City Police Department

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.

SAN DIEGO – Edgar Perez Villa, an alleged member of a Tijuana-based enforcement group for the Cártel de Jalisco Nueva Generación, commonly known as CJNG, was extradited from Mexico to the United States on Thursday and made his first appearance in federal court in San Diego today.

Perez Villa was indicted along with other alleged Mexican drug cartel enforcers in connection with their alleged violent support of heroin and methamphetamine trafficking.

At today’s hearing, Perez Villa was arraigned and entered a not-guilty plea before U.S. Magistrate Judge Jill L. Burkhardt. The government asked that Perez Villa be detained on grounds that he is a significant flight risk. Judge Burkhardt scheduled a detention hearing for February 27, 2025, at 2 p.m. before Judge Michelle Pettit. The Court also set March 28, 2025, at 10:30 a.m. for a motion hearing/trial setting before U.S. District Court Judge Cynthia A. Bashant.

The superseding indictment, returned on March 6, 2020, plus a related indictment returned on March 16, 2021, collectively charged Perez Villa, aka Cabo 89, along with other alleged cartel leaders - including Edgar Herrera Pardo, aka Caiman; Carlos Lorenzo Hinojosa Guerrero, aka Cabo 96; and Israel Alejandro Vazquez-Vazquez, aka Cabo 50, among others. They are charged with drug trafficking crimes.

According to court documents, the defendants were leaders of a violent group of cartel enforcers known as “Los Cabos” who operated in Baja California to secure control of the region for CJNG.

Los Cabos allegedly employed rampant violence to ensure that CJNG maintained the ability to traffic drugs through Tijuana and into the United States through San Diego. According to the indictment, investigators learned through judicially-authorized interceptions that the leaders of Los Cabos planned more than 150 murders, the majority of which took place in Tijuana, according to the filings.

Los Cabos allegedly engaged in this violence in support of CJNG, one of the most dangerous transnational criminal organizations in the world.  The cartel has its hands in trafficking multiple deadly substances. It is responsible for moving tons of cocaine, methamphetamine, and fentanyl-laced heroin into the United States.  CJNG is also a prolific methamphetamine producer and chemical importer, using precursors procured from China and India. CJNG is one of the most powerful Mexican cartels operating within the United States.

“For far too long, violent cartels have inflicted untold suffering through violence and drug addiction,” said Acting U.S. Attorney Andrew Haden. “Our fight against this reign of terror will not waver.”

“Cartels use violence and intimidation to control the areas they terrorize,” said DEA Special Agent in Charge Brian Clark. “As an alleged member of Los Cabos, Perez-Villa spent years destroying the community through drug trafficking and violence. One by one, the DEA will hold these criminals accountable and bring them to justice.”

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 Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Perez Villa.

DEFENDANT                                                                                        

Case Number: 19CR1274-BAS

Edgar Perez Villa, aka Cabo 89, aka Nier                Age 35                 Tijuana

SUMMARY OF CHARGES

Conspiracy to Distribute Controlled Substances for Purpose of Unlawful Importation, in violation of Title 21 U.S.C. §§ 959, 960 and 963

Maximum Sentence: Mandatory minimum ten years and up to life imprisonment, $10 million fine

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

Maximum Sentence: Mandatory minimum ten years and up to life imprisonment, $10 million fine

INVESTIGATING AGENCIES

Drug Enforcement Administration

Homeland Security Investigations

Department of Justice, Organized Crime Drug Enforcement Task Force

Department of Justice, Office of Enforcement Operations

Department of Justice, Office of International Affairs

San Diego Sheriff’s Department

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

SAN DIEGO – U.S. District Court Judge Todd Robinson sentenced Lucresia Stone-Rojas of San Diego today to 86 months in prison for being a felon in possession of a firearm on November 12, 2023, and possession with intent to distribute heroin on December 27, 2023. Stone-Rojas previously pleaded guilty in federal court to these charges.

According to court records, police stopped Stone-Rojas on November 12, 2023, after license plate readers identified a stolen Porsche near North Second Street and East Main Street in El Cajon. During the stop, police recovered a loaded 9mm Walther firearm and an additional ammunition magazine. Multiple prior felony convictions prohibit Stone-Rojas from possessing a firearm or ammunition. She was therefore charged with unlawful firearm possession, following investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Drug Enforcement Administration (DEA).

Stone-Rojas was again arrested by federal investigators on December 27, 2023, for a second offense. This time, Stone-Rojas possessed sealed packages and envelopes addressed to multiple prison inmates in the California Department of Corrections. A search of the packages revealed two Bibles containing approximately 23 grams of heroin; the drugs were concealed in the spine of the Bibles and destined for delivery to two different California prisons.

“Smuggling drugs into our prisons endangers both the inmates and the correctional staff. It will not be tolerated.” said Acting U.S. Attorney Andrew Haden “Hopefully this case will serve as a warning to anyone who would be willing to abuse the tools of faith and rehabilitation to perpetuate addiction and despair.”

“Multi-convicted felons who possess firearms will be held accountable as we work to keep our communities safe and firearms out of the hands of prohibited people,” said ATF Los Angeles Field Division Special Agent in Charge Kenneth R. Cooper. “ATF will continue to work with local and state law enforcement agencies to investigate the violent career criminals who illegally possess firearms.”

“Drug distribution, no matter where it occurs, threatens the safety of our community and will not be tolerated,” said DEA Special Agent in Charge Brian Clark.
 

DEFENDANT                                                                             Case Number 23CR2622 (TWR)

Lucresia Stone-Rojas                                                 Age: 46                                                        San Diego, CA

SUMMARY OF CHARGES

Felon in Possession of a Firearm — Title 18 U.S.C., Section 922(g)(1)
Maximum Penalty: 15 years in prison and $250,000 fine

Possession with Intent to Distribute Heroin – Title 21 U.S.C., Section 841(a)(1)
Maximum Penalty: 20 years in prison and $1,000,000 fine

INVESTIGATING AGENCIES
Bureau of Alcohol, Tobacco, Firearms and Explosives
Drug Enforcement Administration
El Cajon Police Department

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

SAN DIEGO – The U.S. Attorney’s Office for the Southern District of California announced that U.S. Attorney Tara McGrath’s tenure as the chief federal law enforcement official for San Diego and Imperial counties ended today, February 12, 2025.

As a Presidential appointee, Ms. McGrath was informed of her termination in a communication from the White House, at the direction of the President of the United States. The White House also thanked Ms. McGrath for her service to the nation.

“It has been an honor to serve as U.S. Attorney, working alongside an exceptional team in this office and forging strong partnerships with our law enforcement agencies and communities in pursuit of justice,” Ms. McGrath said. “As I step down from a decades-long career in public service, I remain inspired by dedicated public servants across this district and am proud of all we achieved together.”

Ms. McGrath was confirmed by the U.S. Senate after nomination by President Biden. She was sworn in as the district’s top federal law enforcement official on October 5, 2023. She oversaw one of the nation’s busiest United States Attorney’s Offices, which has a staff of about 300 and serves approximately 3.5 million residents in San Diego and Imperial counties.

During her tenure, Ms. McGrath prioritized protecting the community from the deadly scourge of fentanyl; investigating and prosecuting scammers targeting vulnerable populations; getting firearms out of the hands of felons and violent offenders; bringing cases to root out corruption and enforce civil rights; and using the legal tools available to safeguard the environment. The office also successfully prosecuted cases involving Mexican drug cartels and drug trafficking — leading the nation in the number of drug trafficking cases prosecuted — as well as firearms trafficking and violent crime; complex financial frauds; national security and cybersecurity; and human smuggling and trafficking.

Some key accomplishments of the U.S. Attorney’s Office under Ms. McGrath’s leadership:

• Became first in the nation to charge defendants for smuggling potent greenhouse gases across the U.S.-Mexico border, in violation of U.S. environmental laws.
• Secured sentences of six consecutive life terms and 45 years, respectively, for brothers convicted of murdering their American half-sister, her three children, and her partner in Tijuana.
• Reinforced the region’s Elder Justice Task Force in partnership with the FBI and San Diego County District Attorney’s Office, recovering approximately $4.5 million stolen from elderly victims through sophisticated scams.
• Charged 40 individuals with stealing public-assistance benefits from low-income families, as part of an ongoing effort targeting thieves who exploit the government’s electronic payment system.
• Negotiated a $130,131,645 forfeiture settlement with Wynn Las Vegas for criminal conspiracy involving unlicensed money transmitting businesses worldwide. Achieved what is believed to be the largest forfeiture by a casino based on admissions of criminal wrongdoing.
• Secured conviction at trial against a defendant on 25 counts of securities fraud, bank fraud, and money laundering in connection with a $35 million investment and COVID-relief fraud scheme. Highlighted victim impact during the trial, including the defendant’s immigrant uncle who’d been swindled out of $4.5 million and many other victims who collectively lost millions of dollars.
• Facilitated the extradition of Michael Pratt, the alleged mastermind behind the GirlsDoPorn commercial sex trafficking ring, following his arrest in Spain after more than three years as an international fugitive.

Ms. McGrath also oversaw key civil cases, including successful defensive litigation on behalf of the United States, and led efforts to recover millions of dollars from individuals and companies involved in fraud and civil rights violations.

Since Ms. McGrath took the helm, the U.S. Attorney’s Office has obtained settlements and recoveries in excess of $41 million. This includes cases brought under the False Claims Act across a broad spectrum of program areas including health care, defense procurement, and the Paycheck Protection Program enacted in response to the COVID-19 pandemic. These substantial recoveries also involved matters investigated under the Controlled Substances Act in response to the opioid epidemic, including those against a large-scale pharmacy and other DEA registrants for failing to meet their obligations to properly handle and dispense opioids and other dangerous controlled substances.   

Pursuant to the Vacancies Reform Act, career prosecutor and current First Assistant U.S. Attorney, Andrew R. Haden, has taken over as the Acting United States Attorney, effective today.

For more information about Ms. McGrath, please see Tara McGrath Sworn In

SAN DIEGO – Jonathan Christopher LaRoche, a former detective with Naval Base San Diego Criminal Investigations Division, was sentenced in federal court today to 15 months in prison in connection with his use of a carotid restraint on a handcuffed Navy sailor to the point of unconsciousness and later grabbing the man by the throat and pushing his head against a wall.

LaRoche pleaded guilty in July 2024 to Deprivation of Rights Under Color of Law in connection with the November 2023 incident of excessive force. He also admitted that he intentionally concealed his prior record of excessive force at the El Cajon Police Department in order to be hired as a detective by the Navy.

During the hearing, the Navy sailor – identified in court records only as G.D. – told the court that LaRoche had subjected him to “unimaginable pain, trauma, and brutality” and left him “feeling violated, discarded, and dehumanized.”

Before imposing sentence, U.S. District Judge John A. Houston told LaRoche that he “got a pass after three [excessive force] incidents with a local law enforcement agency” and then “lied your way into this job and set yourself up to harm someone else.”  Judge Houston observed that the excessive force used by LaRoche against G.D. was “extraordinary conduct for someone with your law enforcement experience” and called it “disgusting, violent, and extremely disturbing.”

The defendant was ordered to surrender to the Bureau of Prisons by April 21, 2025.

“The victim in this case was handcuffed, defenseless, and posed no threat—yet a sworn officer chose to violate his rights through violence,” said U.S. Attorney Tara McGrath. “This office will hold accountable anyone who chooses to abuse their power at the expense of another’s rights.”

“Mr. LaRoche betrayed his oath as a law enforcement officer when he used excessive force on a sailor who was handcuffed and defenseless,” said Special Agent in Charge Nicholas Carter of the NCIS Southwest Field Office. “NCIS remains committed to fully investigating criminal behavior that threatens the safety of our warfighters and their families.”

As required by his plea agreement with the United States, LaRoche resigned from his position with the Criminal Investigations Division prior to the sentencing hearing. He is prohibited from seeking or applying for any position of employment with any law enforcement agency in the future.

This case was prosecuted by Assistant U.S. Attorney Seth Askins in coordination with the Naval Criminal Investigative Service.

DEFENDANT                                               Case Number 24cr1431-JAH                           

Jonathan Christopher Laroche                        Age: 41                                   Spring Valley, CA

SUMMARY OF CHARGES

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

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

Deprivation of Rights Under Color of Law (misdemeanor) – Title 18, U.S.C., Section 242

Maximum penalty: One year in prison and $100,000 fine

INVESTIGATING AGENCY

Naval Criminal Investigative Service

A grand jury in Chicago returned an indictment yesterday charging a high-ranking affiliate of the Sinaloa Cartel for allegedly manufacturing and distributing fentanyl, cocaine, heroin, and other drugs and importing them into the United States.

“As alleged, the defendant conspired to traffic dangerous drugs, including fentanyl, into the United States — and employed dozens of gunmen to protect his drug trafficking operation and the leadership of the Guzman faction of the Sinaloa Cartel,” said Supervisory Official Antoinette T. Bacon of the Justice Department’s Criminal Division. “Stopping Mexican cartels from poisoning our communities with fentanyl and other narcotics is a top priority of this Administration. Today’s indictment demonstrates that the Criminal Division is relentless in its pursuit of the drug traffickers who profit at the expense of the American people.”

“Our nation’s fentanyl crisis has devastated individuals and families in northern Illinois and throughout the country,” said Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois. “Our office will continue to work with our law enforcement partners to disrupt the production and trafficking of fentanyl and other dangerous narcotics before they can reach more victims.”

“From San Diego to Chicago to D.C., we are united to bring down the traffickers pushing these poisons into American communities,” said U.S. Attorney Tara McGrath for the Southern District of California. “We are attacking at every level — from street dealers to cartel leaders.”

“This indictment reinforces the FBI’s unwavering commitment to hold accountable those who endanger our communities and traffic violence and drugs across our borders,” said Assistant Director Chad Yarbrough of the FBI’s Criminal Investigative Division. “Let this serve as a clear message: if you engage in cartel activity, we will pursue you and bring you to justice. Together with our law enforcement partners at every level, we remain fully committed to protecting the American people and stopping the flow of these dangerous drugs into our nation.”

According to court documents, Ceferino Espinoza Angulo, 43, employed dozens of gunmen in Mexico to protect and support the leadership of the Guzman faction of the Sinaloa Cartel, including Ivan Guzman-Salazar, Jesus Alfredo Guzman-Salazar, Ovidio Guzman-Lopez, and Joaquin Guzman-Lopez, collectively known as “the Chapitos.” Espinoza Angulo allegedly conspired to obtain fentanyl precursor chemicals and to manufacture, distribute, and import into the United States fentanyl, cocaine, heroin, methamphetamine, and ecstasy. Ceferino Espinoza also allegedly illegally possessed a machinegun in furtherance of his drug trafficking scheme.

The Chapitos are the sons of Joaquin Guzman Loera, also known as “El Chapo,” who led the Sinaloa Cartel before being convicted by a federal jury in Brooklyn, New York, and sentenced to life in prison. The Chapitos allegedly assumed their father’s role as leaders of the Sinaloa Cartel. The Chapitos have been charged with drug trafficking in other U.S. indictments.

Espinoza Angulo is charged with drug conspiracy and firearm offenses. If convicted, he faces a mandatory minimum penalty of 30 years in prison and a maximum penalty of life in prison. Espinoza Angulo is believed to be residing in Mexico, and a U.S. warrant has been issued for his arrest.

The FBI and Homeland Security Investigations investigated the case. Valuable assistance was provided by the Drug Enforcement Administration’s Special Operations Division, Bilateral Investigations Unit, and the Portland, Oregon, Police Bureau, Narcotics and Organized Crime Unit, High Intensity Drug Trafficking Areas Interdiction Taskforce.

Trial Attorney Kirk Handrich of the Criminal Division’s Narcotic and Dangerous Drug Section, Assistant U.S. Attorneys Michelle Parthum and Andrew C. Erskine for the Northern District of Illinois, and Assistant U.S. Attorney Matthew Sutton for the Southern District of California prosecuted the case.

The case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles drug trafficking organizations and other criminal networks that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local enforcement agencies.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

SAN DIEGO – Fabrisio Arias was sentenced in federal court today to 41 months in prison for his part in an international scam that tricked seniors into believing they’d won a sweepstakes prize, but first they had to pay a fee or tax to release their winnings.

At today’s hearing, U.S. District Judge Jinsook Ohta also ordered Arias to pay $395,536.05 in restitution to 22 victims.

According to his plea agreement, between November 2020 and September 2022, Arias was a member of an international conspiracy that defrauded victims in the United States and laundered large amounts of money.

The conspiracy involved scammers who contacted victims by phone and convinced them to send thousands of dollars to Arias’ home in Fontana, California; and Arias, who laundered the proceeds through his U.S.-based bank accounts. Arias received and transferred most of the ill-gotten gains to coconspirators in Costa Rica, and in the process concealed the nature, source, location, ownership and control of the proceeds.

The phone scammers in Costa Rica made unsolicited calls to elderly victims in the United States using spoofed numbers. This allowed callers to conceal their identity and make it appear as if the calls originated from locations in the United States.

During calls with victims, the scammers purported to be with the Internal Revenue Service or the  Federal Trade Commission, and made victims believe they’d won a sweepstakes award or prize and had to pay a fee or tax to release the winnings. The scammers instructed victims to send cashier’s checks, blank money orders or cash to Arias, who scammers falsely identified as a government CPA.

In reality, there was no sweepstakes prize or award. Arias simply received the fraud proceeds, deposited them into his U.S.-based bank accounts, and notified his co-conspirators in Costa Rica when he received the proceeds. Co-conspirators then contacted the victims again, attempting to convince and pressure them to send more money to release the purported winnings.

According to the government’s sentencing memorandum, Arias received 200 cashier’s checks and blank money orders from at least 22 victims throughout the U.S. Arias concealed the proceeds and made them appear legitimate by writing false payor names, signatures, and memo line entries on money orders and by commingling the proceeds with funds from his nightclub and used-car businesses. Arias also concealed the proceeds he sent to his co-conspirators in Costa Rica and made them appear legitimate by placing false information on at least 30 wire transfers, claiming the payments were for used cars, a house, or family support.

The victims – many of whom were in their seventies, eighties, or nineties – suffered financial hardship as a result of the scheme. To make ends meet, one victim had to obtain a reverse mortgage on his home; another had to take money from a family member’s college fund; and another had to return to work after retirement. Several victims lost their life savings, including a victim whose entire 401(k) retirement account was drained.

Arias received and laundered more than $395,000 in fraud proceeds over the course of nearly two years and sent more than $237,000 of proceeds to his co-conspirators in Costa Rica. Arias kept a substantial portion of the remaining $157,000 as profit.

“If it seems too good to be true, it probably is,” said U.S. Attorney Tara McGrath. “These schemes can be difficult to identify and very appealing – when in doubt, hang up the phone and report suspicious callers to law enforcement.”

“Victimizing taxpayers by impersonating IRS employees is a serious crime,” said Acting Special Agent in Charge Brandon Knarr. “TIGTA and our law enforcement partners will do everything within our power to ensure that those involved in the impersonation of IRS employees are prosecuted to the fullest extent of the law.” 

“The consequences of this type of fraud scheme are far reaching, affecting not only people in the United States, but also across the world,” said Los Angeles Division U.S. Postal Inspector in Charge Matt Shields. “This investigation is just another example of how effective law enforcement agencies can be when they join forces. By working together, we can keep our communities and our vulnerable populations safe from financial exploitation. The U.S. Postal Inspection Service is proud to be at the forefront of the fight against fraud and Postal Inspectors will continue to adapt to the ever changing landscape to stop the scammers and protect our customers.”

This case was prosecuted by Assistant U.S. Attorney Patrick C. Swan.

If you think you’ve been contacted by a scammer, report it quickly to the FBI at IC3.gov. There is a team standing by. The faster the report comes in, the more likely we are to stop the transaction and recover your money.

For other non-life-threatening emergencies, call the National Elder Fraud Hotline at 1-833-FRAUD-11, or go to the Department of Justice’s Elder Justice Initiative website for more information: www.justice.gov/elderjustice.

DEFENDANT                                   Case Number 22-cr-2745-JO           

Fabrisio Arias                                     Age: 46                                   Fontana, CA

SUMMARY OF CHARGES

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

Maximum penalty: Five years in prison; a maximum $250,000 fine or twice the gross gain or loss resulting from the offense, whichever is greatest; and a term of supervised release up to 3 years

Concealment Money Laundering – Title 18, U.S.C., Section 1956(a)(1)(B)(i)

Maximum penalty: Twenty years in prison; a maximum $500,000 fine or twice the value of the property involved in the transaction, whichever is greatest

INVESTIGATING AGENCIES

U.S. Treasury Inspector General for Tax Administration (TIGTA)

U.S. Postal Inspection Service, Los Angeles Division

SAN DIEGO – Alexander Dmitrienko of Finland became the last of eight defendants extradited so far to admit participating in the worldwide conspiracy to distribute ANOM hardened encrypted communication devices to criminal syndicates. The ANOM enterprise facilitated drug trafficking, money laundering, and obstruction of justice crimes.

The eight defendants were among 17 indicted in San Diego in 2021 in connection with Operation Trojan Shield, a first-of-its-kind, international law enforcement effort in which the FBI secretly operated an encrypted messaging network. The ANOM criminal enterprise was responsible for the distribution of more than 12,000 devices in 100 countries. While ANOM’s criminal users unknowingly communicated on the system operated by law enforcement, agents catalogued more than 27 million messages between users around the world whose criminal discussions were covertly obtained and reviewed by the FBI.

ANOM devices were sold to and used by over 300 criminal syndicates, including outlaw motorcycle gangs, Italian and Balkan organized crime groups, and international drug trafficking organizations. The investigation culminated in a worldwide takedown on June 7, 2021. During the takedown, more than 10,000 law enforcement officers made over 500 arrests and searched over 700 locations around the world.

Of the 17 indicted in San Diego, eight have been extradited to date. Dmitrienko pleaded guilty in federal court yesterday; defendants Seyyed Hossein Hosseini and Aurangzeb Ayub of the Netherlands and Shane Ngakuru of New Zealand entered their guilty pleas on January 23, 2025; Dragan Nikitovic, Edwin Harmendra Kumar, Miwand Zakhimi, and Osemah Elhassen pleaded guilty between May and September 2024. All pleaded guilty to Count 1 of a superseding indictment charging them with a racketeering conspiracy in connection with the ANOM enterprise.

Prior to their guilty pleas, the defendants filed motions to dismiss the indictment and a motion to suppress the ANOM evidence. The District Court denied those motions, concluding the Fourth Amendment did not apply to the defendants and the ANOM data collection did not violate the U.S. Constitution.

In total, the investigation resulted in approximately 1,200 arrests; the seizure of more than 12 tons of cocaine, three tons of methamphetamine or amphetamines; 17 tons of precursor chemicals, 300 firearms, and $58 million in various currencies. Dozens of public corruption investigations, too, have been pursued, and more than 50 drug labs have been dismantled. Further, over 150 threats to life were prevented.

According to their plea agreements, the defendants promoted the ANOM platform as “Built by criminals for criminals,” and touted security features such as the ability to wipe devices remotely when seized by law enforcement. The defendants admitted that the conspiracy’s purposes included money laundering and laundering with cryptocurrency. As to drugs, specifically, the four defendants who pleaded guilty in January and February 2025—Hosseini, Dmitrienko, Ayub, and Ngakuru—all admitted that they sold ANOM devices knowing that they would be used to traffic at last 50 kilograms of cocaine; Ngakuru also admitted the importation, exportation, and distribution of at least five kilograms of methamphetamine. Based on their plea agreements and other court filings, what these defendants also did as part of the conspiracy included:

• Hosseini was a part of a team of ANOM distributors, “Team Wijzijn,” based in the Netherlands. He and Dmitrienko discussed the distribution of “90% pure, Peruvian” cocaine, for example, and he and Kumar messaged each other about bringing “kilos” from Belgium and getting drugs to Australia by “Fisher boats.” Hosseini promoted ANOM’s security features and told other distributors about vulnerabilities of competitors SkyECC and No. 1 BC. Hosseini also admitted to obstructing justice through wiping ANOM devices when they were seized by law enforcement.
• Dmitrienko distributed ANOM devices from Spain. He frequently used ANOM for cocaine and other drug distribution: “5 blocks of colombian coke” and “32 blocks,” he offered in two instances, in addition to conversations about “cook[ing] cocaine.” Dmitrienko wrote about “gateways” and “interesting opportunities” for the enterprise in Russia and Ukraine, including through Latvia and Lithuania. He also promoted money laundering through a company he had in Delaware, telling Hosseini that it involved “0% tax and no book[k]eeping…Yes this is pure moneylaund[e]ring ?.”
• Ayub was an ANOM distributor in Europe, who also sold encrypted communications devices in the U.A.E.—and he had been imprisoned in Dubai for distributing these types of platforms. Ayub was involved in cocaine distribution as he talked about “top” (cocaine) from Colombia, and delivery to London, and sending “100k at a time” to pay for the drugs. He promoted ANOM through his own experience and contrasts with Encrochat and SkyECC, both of which were taken down by law enforcement in 2020 and 2021. Ayub, too, admitted to the obstruction of justice through wiping ANOM devices.
• Ngakuru was based in Thailand, distributing ANOM devices there and in New Zealand and Australia. He used the platform for extensive cocaine and methamphetamine distribution and money laundering. He was tied to two seizures of methamphetamine; discussed quality, repressing, and prices for “rack” and “bird” (cocaine); and detailed in messages how seven kilograms of methamphetamine was concealed in boxes of “full scan proof” “commercial lights.” Among other times he laundered proceeds, Ngakuru coordinated cash pickup in Sydney, Australia and directed deposits into “Thai accounts.”

“The statistics of this case are staggering,” said U.S. Attorney Tara McGrath. “The FBI led this unprecedented collaboration for years, harnessing the evidence to bring down cocaine, meth, and cash traffickers across the globe. These guilty pleas underscore the impact of international partnerships in dismantling organized crime.”

“Operation Trojan Shield was a massive, innovative, and unprecedented case having immeasurable implications to criminal organizations across the globe,” said FBI San Diego Special Agent in Charge Stacey Moy. “This extraordinary impact came from an investigative strategy that relied on ingenuity, partnerships, and perseverance, designing a blueprint for disrupting organized crime within the United States and abroad. The guilty pleas of all extradited defendants highlight the effectiveness of this strategy and reinforces the FBI’s collaborative approach aimed at dismantling Transnational Criminal Organizations worldwide.”

Matthew Allen, Special Agent in Charge of the DEA Los Angeles Field Division, said, “The triumph of this vast-scale operation demonstrates the immense value of partnerships, both domestic and international. Expert investigators in the DEA Los Angeles Division, working alongside innovative and exceptionally experienced federal and foreign-based partners, took an intricate investigation to the next level. Our multi-agency alliance managed to infiltrate these transnational criminal organizations, ultimately exposing and pummeling their schemes. DEA will continue to foster this type of unprecedented collaboration and offer a core presence.”

Elhassen and Zakhimi were previously sentenced to 63 and 60 months in prison, respectively. The other six defendants who have pleaded guilty are scheduled to be sentenced in February, April, and May, 2025. They were extradited to the Southern District of California from Australia (Kumar), Colombia (Elhassen), The Netherlands (Hosseini, Ayub, and Zakhimi), Spain (Dmitrienko and Nikitovic), and Thailand (Ngakuru). Eight other defendants in the case have been arrested in locations outside the United States and are yet to be extradited, and one remains a fugitive.

This case is being prosecuted by Assistant U.S. Attorneys Joshua C. Mellor, Mikaela L. Weber, and Peter S. Horn.

For further information on investigations and prosecutions of encrypted communication providers, see https://www.justice.gov/usao-sdca/pr/fbi-s-encrypted-phone-platform-infiltrated-hundreds-criminal-syndicates-result-massive (ANOM), https://www.justice.gov/usao-sdca/pr/sky-global-executive-and-associate-indicted-providing-encrypted-communication-devices (Sky Global), and https://www.justice.gov/usao-sdca/pr/chief-executive-communications-company-sentenced-prison-providing-encryption-services (Phantom Secure).

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

The Justice Department’s Office of International Affairs provided significant assistance in securing the arrests and extraditions of the defendants to the United States.

DEFENDANTS                                 Case Number 21cr1623-JLS                                   

Seyyed Hossein Hosseini                   Age: 41                       The Netherlands

Alexander Dmitrienko                        Age: 49                       Finland

Aurangzeb Ayub                                 Age: 48                       The Netherlands

Dragan Nikitovic                                Age: 50                       Croatia and Switzerland

 aka Dr. Djek

Shane Ngakuru                                   Age: 45                       New Zealand

Edwin Harmendra Kumar,                  Age: 37                       Australia

 aka Edwin Harmendra Valentine

Miwand Zakhimi,                               Age: 30                       The Netherlands

 aka Maiwand Zakhimi

Osemah Elhassen                                Age: 52                       Australia

SUMMARY OF CHARGES

Count 1: Racketeering Conspiracy – Title 18, United States Code, Section 1962(d)

Maximum penalty: Twenty years in prison, and fine of up to $250,000 or twice the gain or loss

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Drug Enforcement Administration

United States Marshals Service

Department of Justice, Office of International Affairs

Australian Federal Police

Australian Attorney-General’s Department

Swedish Police Authority

Lithuanian Criminal Police Bureau

National Police of the Netherlands

New Zealand Police

New Zealand Crown Law Office 

Office of the Attorney General of Thailand

Royal Thai Police

EUROPOL

SAN DIEGO – Rafael Castro, a veteran of the U.S. Navy and a former employee of the Veterans Health Administration and the Internal Revenue Service, and his wife, Miriam Castro, pleaded guilty in federal court today to defrauding the Department of Veterans Affairs (VA) out of more than $130,000.

According to their plea agreements, between September 2018 and April 2024, the Castros lied to obtain caregiver benefits from the Caregiver Support Program, a VA program that provides caregiver support for injured veterans. Rafael Castro admitted that he lied about needing high-level assistance for daily activities, including dressing and undressing himself, personal hygiene, and grooming.

According to plea documents, Rafael Castro defrauded the VA into awarding him assistance that paid the primary caregiver—his wife—an amount equivalent to a full-time home health aide’s 40-hour per-week payment.

According to plea documents, for years, Miriam Castro received monthly payments to be a full-time caregiver for Rafael Castro while her husband worked as a full-time federal employee. From July 2015 to June 2023, Rafael Castro worked for the Veterans Health Administration, and from June 2023 to April 2024, he worked for the Internal Revenue Service. Even though he was employed by the federal government, Rafael Castro falsely told VA representatives at least six times that he was unemployed.

For example, during a 2023 interview, Rafael Castro falsely claimed that he had last worked in 2018 and that his wife was his full-time caregiver. According to their plea agreements, while Rafael Castro was engaged in the fraud scheme, he received several promotions, all while he continued to claim he was unemployed. In their respective plea agreements, Rafael Castro and Miriam Castro admitted that they participated in the multi-year scheme to defraud the VA.

“This case is an excellent example of the importance of internal inspections within government programs,” said U.S. Attorney Tara McGrath. “Without the intervention from the Inspector General’s Office, this fraud might have continued indefinitely.”

“These guilty pleas demonstrate that those involved in defrauding VA, including government employees, will be held accountable,” said Special Agent in Charge Anthony Heddell with the Department of Veterans Affairs Office of Inspector General’s Western Field Office. “The VA OIG will continue to work with our law enforcement partners to ensure the integrity of VA’s benefits programs and services.”

“Violations of federal law, particularly those committed by IRS employees will not be tolerated and will be prosecuted to the fullest extent of the law,” Acting Special Agent in Charge Brandon Knarr stated. “TIGTA will continue to work closely with the United States Attorney’s Office and our law enforcement partners to identify, investigate and hold those individuals responsible for their illegal activities.”

Sentencing is scheduled for April 25, 2025, at 9 a.m. before U.S. District Judge James E. Simmons, Jr.

This case is being prosecuted by Assistant U.S. Attorney Edward Chang.

To report fraud in a VA program, call the VA-OIG hotline at 1-800-488-8244 or visit https://www.va.gov/oig/hotline/.

DEFENDANTS                                             Case Number 25CR0310-JES                                 

Rafael Castro                                                  Age: 50                                   Oceanside, CA

Miriam Castro                                                 Age: 48                                   Oceanside, CA

SUMMARY OF CHARGES

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

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

INVESTIGATING AGENCIES

Department of Veterans Affairs, Office of Inspector General

Treasury Inspector General for Tax Administration