Southern District of California

SAN DIEGO – Brink’s Global Services USA, Inc., a currency transporter and subsidiary of Brink’s, Inc. and The Brink’s Company, agreed to forfeit $50,391,143.22 to settle criminal allegations that it operated as an unlicensed money transmitting business.

Today’s settlement is believed to be the first resolution with an armored car company based on admissions of criminal wrongdoing for failing to register as a money transmitting business. Brink’s Global Services USA, Inc. (BGS) admitted that it violated Bank Secrecy Act rules requiring that a company transporting money to a third party register with the Financial Crimes Enforcement Network (FinCEN) and maintain anti-money laundering compliance programs.

As part of a Non-Prosecution Agreement, which allows a company or individual to avoid criminal prosecution in exchange for meeting certain criteria, BGS admitted that it illegally transported money domestically and internationally between third parties and outside the limited regulatory protections for currency transporters. During this illegal conduct, BGS failed to have compliance controls in place to ensure its business activities remained within the regulatory safe harbor provided to the armored car industry. As a result, BGS operated as unlicensed money transmission business on multiple occasions in violation of U.S. law.

For example, BGS transported more than $15 million from a money service business in San Diego to a separate money service business in Florida across 12 transactions but failed to seek or obtain information confirming that the final beneficiary of each transaction was not someone other than the shipper and did not have compliance controls in place to do so.  In fact, for each of the 12 transactions, the approximately $15 million was ultimately transmitted to a third-party not identified by BGS.

In addition, on eight occasions BGS was involved in the importation of currency totaling more than $35 million into the United States from Mexico. BGS and two other currency transporters caused the currency importation and subsequent domestic transportation of that money on behalf of a money service business located in Mexico for final delivery to several money service businesses in the United States.  Such currency cross-border transshipments fall outside the safe harbor of the currency transporter exemption – which allows a company to avoid Bank Secrecy Act requirements if transactions involve just one company or individual and no third parties – and rendered BGS an unlicensed money transmitter in violation of Title 18, United States Code, Section 1960.

“This year’s long investigation detected—and now closes—a back door where cash covertly entered the global financial system,” said First Assistant U.S. Attorney Andrew Haden. “For too long, parties have used currency transporters in a manner that evaded Bank Secrecy Act reporting requirements and anti-money laundering tools. This office remains laser-focused on holding individuals and corporations—including those in the armored car industry—accountable for moving money in ways that dodge U.S. law.”

“This settlement serves as a testament to the unwavering dedication and collaboration of Homeland Security Investigations (HSI) and our law enforcement partners,” said Shawn Gibson, Special Agent in Charge of HSI San Diego. “Together, we have worked to uncover and address the criminal enterprises that have exploited the U.S. financial system for many years. Our commitment to safeguarding the integrity of our financial markets remains resolute, and we will continue to pursue those who threaten its stability and security.”

“This case highlights the significance of Customs and Border Protection’s (CBP) collaboration between law enforcement agencies in dismantling illegal operations that undermine the integrity of our financial systems,” said Sidney Aki, CBP Director of Field Operations for San Diego. “Through these partnerships, we have successfully exposed and disrupted illicit activities that spanned across borders, to include operations in Mexico. Their agreement to forfeit these funds demonstrates our commitment to holding individuals and businesses accountable when they violate the law. We remain steadfast in our pursuit of those who exploit financial systems for unlawful purposes, ensuring that justice is served, and public trust is upheld.”

In a parallel enforcement action, BGS and FinCEN resolved civil allegations related to BGS’s failure to maintain an adequate anti-money laundering program and other related violations.

This case was led by Assistant U.S. Attorney E. Christopher Beeler with important contributions from Assistant U.S. Attorneys Carl F. Brooker and Michael A. Deshong.

The full agreement is attached here.

INVESTIGATING AGENCIES

Homeland Security Investigations

U.S. Customs and Border Protection

SAN DIEGO – A two-count indictment was unsealed in federal court today charging San Diego Sheriff’s Deputy Jeremiah Manuyag Flores with violating the civil rights of a man in pretrial custody at the San Diego Central Courthouse by using excessive force that caused serious injuries and then writing a false report to cover up his illegal actions.

Flores is charged with depriving the individual – identified in the indictment as 57-year-old J.P. – of his right to due process of law under the Fourteenth Amendment to the United States Constitution and of falsifying a record in a federal investigation.

The indictment alleges that Flores was assigned to the Court Services Bureau at the San Diego Central Courthouse on August 29, 2024, and was escorting J.P. to a holding cell following a court hearing. At the time, J.P.’s legs were chained and his hands were cross-chained to his waist.  At one point, Flores grabbed the back of J.P.’s shirt with both hands and pushed him faster down the hallway leading to the holding cell.

When Flores and J.P. arrived at the open door to the holding cell, Flores forcefully shoved J.P. into the cell from behind with both hands, causing J.P. to smash into the bench and walls and collapse to the ground, the indictment said. Flores stated, “What? Nothing happened,” and failed to immediately report the incident to his supervisor and prepare an official report, both of which are violations of the San Diego Sheriff’s Office’s Use of Force Policy.

According to the indictment, another deputy found J.P. over two hours later lying in the same position in his holding cell with a head wound and a pool of blood on the floor.  As a result of Flores’ actions, J.P. suffered a spinal injury for which he underwent surgery and remained hospitalized for months.

The indictment said that more than an hour after J.P. was discovered in his holding cell, Flores falsely claimed in an incident report that “no force was used” in placing J.P. into the cell, though he knew that he had, indeed, used force against the detainee.

“The vast majority of law enforcement personnel are dedicated public servants committed to following the rule of law and protecting our communities,” said U.S. Attorney Tara McGrath.  “But when a choice is made to cross the line and violate someone’s civil rights, this office will stand on behalf of the victim, and all those who wear the badge with honor, to uphold the public’s trust.”

“Law enforcement officers work tirelessly every day to protect the public, always striving to be professional, honest, and ethical,” said San Diego FBI Special Agent in Charge Stacey Moy. “The alleged action of the defendant not only violates the oath he swore as a law enforcement officer to protect and serve, but also erodes citizen confidence and trust in our profession.”

Flores made his initial appearance in federal court today before U.S. Magistrate Judge David D. Leshner. He entered pleas of not guilty to both charges and was released on a $25,000 personal appearance bond with special conditions that he surrender his passport and his personally owned firearms. The next scheduled court appearance is a motion hearing and trial setting before U.S. District Judge Linda Lopez on March 10, 2025, at 2 p.m.

This case is being prosecuted by Assistant U.S. Attorney Seth Askins.

DEFENDANTS                                             Case Number 25cr0254-LL                                          

Jeremiah Manuyag Flores                               Age: 44                                   La Jolla, CA

SUMMARY OF CHARGES

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

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

Falsification of Records in a Federal Investigation – Title 18, U.S.C., Section 1519

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

INVESTIGATING AGENCIES

Federal Bureau of Investigation

San Diego County Sheriff’s Office (Homicide Unit)

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

SAN DIEGO – Carlos Manuel da Silva Santos, the founder and chief executive officer of San Diego-based Ethos Asset Management, Inc., which offered financing to domestic and international businesses, pleaded guilty to wire fraud conspiracy and aggravated identity theft today in federal court.

Santos, a Portuguese national, has been in custody since his arrest on November 13, 2023, in Newark, New Jersey, after arriving in the United States from abroad.

According to his plea agreement, Santos admitted he and co-conspirators held Ethos out to the public as a “full-service project financing” company that offered loans to prospective borrowers in exchange for an upfront fee as collateral for Ethos to use. However, on many occasions when a borrower gave Ethos the upfront fee as collateral, Ethos’ funding never materialized.

To induce prospective borrowers to send Ethos an upfront fee as collateral and enter into loan agreements, Santos and his co-conspirators lied about Ethos’ history of funding projects, the source of Ethos’ money, the amount of capital available to disburse loans, and how Ethos used the collateral upfront fees. For instance, Santos admitted that  he used money from the upfront collateral fees to release collateral deposited by other borrowers and to disburse loans to other borrowers.

Santos also admitted that he and others altered otherwise legitimate financial account statements to inflate the amount of money Ethos appeared to have at its disposal to finance projects for the purpose of luring prospective borrowers to provide collateral and financial institutions to lend money. For example, in August 2021, Santos successfully induced a borrower to wire money as a collateral upfront fee by sending a bank statement that falsely represented Ethos having $100,304,447.46 when, in fact, it did not.

In February and May 2023, Santos again induced borrowers to provide collateral upfront fees by emailing a copy of Ethos’ annual financial statements reflecting falsely that Ethos had over $2.2 billion in total assets and that an accounting firm had audited the statements. Indeed, Santos admitted that he knowingly forged the signature of an employee at a bookkeeping firm on Ethos’s 2022 annual financial statement to falsely indicate that the firm had audited the statement. In each noted example, Ethos fraudulently obtained upfront fees and failed to disburse loan payments as promised.

Santos further admitted Ethos’ project financing scheme was international in nature, with a presence in the United States, Brazil, Turkey, and elsewhere. Santos admitted his scheme resulted in $17,125,000 in losses to certain U.S. based victims. The plea agreement also explains that the parties will request a restitution hearing allowing the United States to offer evidence that Santos owes significantly more money to various other victims.

According to the plea agreement, Santos also forged the signature of an employee at an accounting firm to make it appear that the firm had audited Ethos’ annual financial reports.

“Untold numbers of people fall victim to fraud schemes every year,” said U.S. Attorney Tara McGrath.  “Whether it’s a simple email scam or an elaborate investment scheme, the U.S. Attorney’s Office will relentlessly pursue accountability for the defendants and restitution for the victims.”

“Today’s guilty plea underscores Homeland Security Investigation’s (HSI) unwavering commitment to combating financial crimes,” said Shawn Gibson, Special Agent in Charge for HSI San Diego. “This successful outcome is the result of an extensive, long-term investigation where our dedicated agents and partners assigned to the Costa Pacifico Financial Task Force worked tirelessly and diligently to gather all the evidence and bring this individual to justice. Their unwavering commitment and thorough efforts have been instrumental in protecting our community and upholding the law.

Sentencing is scheduled for April 18, 2025, before U.S. District Judge Robert S. Huie.

This case is being prosecuted by Assistant U.S. Attorneys E. Christopher Beeler, Carl F. Brooker IV, and Amy B. Wang.

If you believe you are a victim of Carlos Santos and his company Ethos Asset Management, Inc., contact Homeland Security Investigations at ethos-victim@hsi.dhs.gov.

DEFENDANT

Carlos Manuel da Silva Santos                  Age: 30                                  Portugal

SUMMARY OF CHARGES

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

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

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

Maximum penalty: Mandatory two years in prison consecutive to the term for the underlying felony

INVESTIGATING AGENCY

Homeland Security Investigations

SAN DIEGO – U.S. Attorney Tara McGrath announced today that the Southern District of California collected $18,932,200 in criminal and civil actions in Fiscal Year (FY) 2024. Of this amount, the office collected $7,364,438 in criminal actions and $11,567,761 in civil actions.

The Southern District of California also worked with other U.S. Attorneys’ Offices and components of the Department of Justice to collect an additional $22,465,562 in cases pursued jointly. Of this amount, the offices collected $2,714.08 in criminal actions and $22,462,848 in civil actions.   

“When a crime leads to financial ruin, we are committed to helping victims recover and rebuild their lives,” said U.S. Attorney Tara McGrath. “Over the past year, the U.S. Attorney’s Office collaborated with investigators to streamline the process for victims to recover lost funds, prioritizing swift and meaningful restitution.”

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds to federal and state victim compensation and victim assistance programs.

Additionally, the U.S. Attorney’s Office for the Southern District of California, working with partner agencies and divisions, collected$69,911,795 in asset forfeiture actions in FY 2024. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. 

SAN DIEGO – Ruben Montes of Calexico, California, pleaded guilty in federal court today to conspiring to smuggle and distribute more than $3 million worth of Mexican pesticides and veterinary drugs that are not approved for use in the United States.

In pleading guilty, the defendant acknowledged that since at least November 2020, he coordinated the smuggling of pesticides and veterinary drugs from Mexico into the United States. Montes also admitted to smuggling the chemicals and drugs into the United States from Mexico himself and distributing them within the United States. The primary pesticides involved were Taktic and Bovitraz, which are not registered with the U.S. Environmental Protection Agency for use in the United States. The smuggled veterinary drugs included Tylocet, Terramicina, Tetragent Ares and Catarrol, which are not approved by the U.S. Food and Drug Administration for use in the United States.

Montes admitted that he and others hid the pesticides and veterinary drugs in storage units in Calexico and retrieved them for distribution throughout the United States.

According to experts at the U.S. Environmental Protection Agency, the active ingredient in the pesticides Taktic and Bovitraz is amitraz, which is toxic to bees, if it is released into hives, and humans when it ultimately ends up in honey, honeycomb, and beeswax. Misuse of amitraz-containing products in beehives can result in exposures that could cause neurological effects and possibly reproductive effects in humans from the consumption of contaminated honey. Signs of neurotoxicity from exposure to amitraz has been documented in multiple animal species, and include central nervous system depression, decrease in pulse rate, and hypothermia.

“These substances not only threaten the health and safety of our communities but also undermine the integrity of U.S. regulatory safeguards designed to protect consumers and the environment,” said U.S. Attorney Tara McGrath. “Our office is committed to holding accountable those who prioritize profit over public safety."

“The defendant's conduct put consumer's health and the honeybee industry at risk,” said Benjamin Carr, Special Agent in Charge of the EPA’s criminal enforcement program in California. “The pesticides he distributed were smuggled into the United States from Mexico. The illegal use of amitraz puts adulterated honey in the marketplace and contributes to pest resistance threatening honeybee colonies vital for our food production. The defendant in this case made millions of dollars in ill-gotten gains through the illegal sale of this unregistered pesticide.”

“Today's guilty plea is the result of a long-term Homeland Security Investigations (HSI) investigation, worked in coordination with the Environmental Protection Agency (EPA), into an organization that conspired to smuggle Mexican pesticides into the U.S.,” said Shawn Gibson, Special Agent in Charge of HSI in San Diego.  “We will continue to work with our law enforcement partners to investigate and bring to justice criminals who introduce substances that threaten the safety of our communities.”

“The FDA regulates animal drugs as part of its mission to protect the public health, which includes ensuring that prescription animal drugs are lawfully obtained, distributed, and dispensed pursuant to a valid prescription from a licensed veterinarian,” said Special Agent in Charge Charles Grinstead, FDA Office of Criminal Investigations, Kansas City Field Office. “We will continue to pursue and bring to justice those who attempt to evade the law.”

The defendant is scheduled to be sentenced by U.S. District Judge John A. Houston on April 2, 2025, at 10:00 a.m.

This case is being prosecuted by Assistant U.S. Attorney Elizabet Brown from the U.S. Attorney’s Office for the Southern District of California and Senior Trial Attorney Stephen Da Ponte from the Environmental Crimes Section, Environment and Natural Resources Division of the U.S. Department of Justice.

DEFENDANT                                   Case Number 23CR2377                             

Ruben Montes                                     Age: 60                                               Calexico, CA

SUMMARY OF CHARGES

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

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

INVESTIGATING AGENCIES

Homeland Security Investigations

U.S. Environmental Protection Agency, Criminal Investigations Division

U.S. Food and Drug Administration, Office of Criminal Investigations

California Department of Toxic Substances Control

SAN DIEGO – Lillian Arielle Markowitz, former owner of three San Diego-based surrogacy consulting businesses, pleaded guilty in federal court today to fraud charges, admitting that she stole hundreds of thousands of dollars in client funds from escrow accounts set up to pay for surrogacy-related services.

According to her plea agreement, Markowitz admitted that she owned three businesses — My Donor Cycle, Surrogacy Beyond Borders, and Expecting Surrogacy — through which she marketed herself as a surrogacy consultant to those seeking to realize their dreams of becoming surrogate parents. Beginning around 2018, when Markowitz and her businesses began to experience financial distress, she devised a scheme to steal money from her surrogacy clients by, among other things, submitting fraudulent requests to the escrow company where her clients’ funds were maintained.

Markowitz admitted to submitting four fraudulent escrow disbursement requests from the escrow accounts of two couples. One included what Markowitz knew to be a forged client signature, and each one resulted in her obtaining a check from the escrow company without the knowledge or consent of her clients.

In addition, Markowitz admitted that beginning in January 2019 and continuing through May 2021, she defrauded nine additional clients by falsely promising their funds would be deposited into an escrow account and that they would be accessed only to pay for expenses related to their respective surrogacy journey. In fact, Markowitz deposited these clients’ funds into a business checking account and immediately accessed those funds to cover general business expenses, expenses related to other clients’ surrogacy journeys, and her personal expenses. As a condition of her plea, Markowitz has agreed to make restitution of at least $389,142.00 to her former clients.

“The path to parenthood through surrogacy can be fraught with emotional and financial challenges,” said U.S. Attorney Tara McGrath. “This defendant selfishly exploited vulnerable clients who were striving to fulfill their dream of becoming parents.”

“Instead of aiding her hopeful clients on their path to parenthood, the defendant took advantage of their vulnerability, betrayed their trust, and stole their money,” said FBI San Diego Special Agent in Charge Stacey Moy. “FBI will continue to investigate these unique fraud schemes to protect the public against those who employ empty promises and prey upon vulnerable individuals.”

Markowitz is scheduled to be sentenced on April 11, 2025, at 9:30 a.m., by District Judge Todd W. Robinson.

If you believe that you may be a victim in this case, please contact the FBI San Diego field office at (858) 320-1800.

This case is being prosecuted by Special Assistant United States Attorney Jeffrey D. Hill and Assistant U.S. Attorney Mark W. Pletcher.

DEFENDANT                                                           Case Number 24-CR-0904-TWR

Lillian Arielle Markowitz (aka Lillian Frost)             Age: 40                                   Portland, OR

SUMMARY OF CHARGES

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

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

INVESTIGATING AGENCY

Federal Bureau of Investigation         

SAN DIEGO – Russell Thurston, a former executive vice president at Cambridge International Systems, Inc., a defense contractor headquartered in Arlington, Virginia, pleaded guilty in federal court today, admitting that he participated in a bribery scheme with other Cambridge employees and former Naval Information Warfare Center employee James Soriano.

According to Thurston’s plea agreement, Cambridge – acting through Thurston and multiple other Cambridge employees – gave various things of value to Soriano, including expensive meals at restaurants in San Diego; a ticket to the 2018 Major League Baseball All Star Game held at Nationals Park in Washington, D.C.; and a job at Cambridge for Soriano’s friend, Liberty Gutierrez. According to Gutierrez’s plea agreement, Gutierrez did minimal work at Cambridge and gave Soriano $2,000 a month from her Cambridge salary.

In return, Soriano, acting in his position as a contracting officer’s representative at Naval Information Warfare Center, influenced the procurement process to ensure that Cambridge was awarded two large task orders. Soriano further ensured that Cambridge was able to capture a steady stream of government funds by influencing a series of projects on those task orders to be approved. According to Cambridge’s plea agreement, as a result of the conspiracy, the government obligated more than $32 million on one of the task orders and over $100 million on the other.

Soriano also allowed Cambridge employees to draft various procurement documents for him, even when Cambridge was competing for contracts against other bidders. Thurston and Soriano also worked together to remove document properties so that other government employees would not know of Cambridge’s involvement in drafting the documents.

According to Thurston’s plea agreement, Thurston received periodic pay bonuses from Cambridge – which totaled between $150,000 and $250,000 – based on the profits Cambridge received from the bribery conspiracy.

Thurston is scheduled to appear before U.S. District Judge Todd W. Robinson for sentencing on April 11, 2025.

“The integrity of our nation’s procurement system relies upon the honest dealing of government contractors,” said First Assistant U.S. Attorney Andrew Haden. “This guilty plea shows a commitment to that principle by holding accountable a defendant who repeatedly bribed a government employee to benefit himself at the expense of others.”

“This investigation clearly established Mr. Thurston’s guilt and his plea is a positive step toward accountability for his role in the crime,” said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Western Field Office. “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. Thurston’s actions directly undermined the Department of Defense contracting process that ensures our warfighters get the best gear for their missions while ensuring our taxpayer dollars are responsibly allocated,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Our men and women in uniform volunteer to put their lives on the line in defense of the United States and they deserve better than to be put at unnecessary risk. IRS Criminal Investigation is committed to partnering with fellow law enforcement agencies to protect our servicemembers from this sort of corruption.”

“Using a position of public trust as a means to inequitably grant access to federal programs for personal gain will not be tolerated,” said SBA OIG’s Western Region Special Agent in Charge, Weston King. “Our Office will remain relentless in the pursuit of those who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office, and our law enforcement partners for their dedication and commitment to seeing justice served.”

Cambridge was separately charged and pleaded guilty to conspiracy to commit bribery in 24-cr-00759-TWR. Cambridge was ordered to forfeit the $1,672,102.23 in profits it obtained from the bribery conspiracy and pay a $2.25 million fine.

Soriano was charged as a co-defendant and pleaded guilty to conspiracy to commit bribery and fraud and false statement in filing a tax return in 24-cr-0341-TWR. Soriano was also separately charged and pleaded guilty to conspiracy to commit bribery in 23-cr-2282-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 24-cr-0341-TWR-2                         

Russell Thurston                                             Age: 52                                   Mt. Pleasant, SC

SUMMARY OF CHARGES

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

Maximum penalty: Five years in prison; maximum $250,000 fine or twice the gross gain or loss resulting from the offense, whichever is greatest

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 – Alleged Sinaloa Cartel cell leader Octavio Leal-Hernandez, aka Chapito Leal, who is believed responsible for trafficking large amounts of methamphetamine, cocaine, heroin and marijuana into the United States from Mexico, appeared in federal court today following his extradition from Mexico yesterday.

Leal-Hernandez was indicted by a federal grand jury in the Southern District of California in May 2020 for International Conspiracy to Distribute Controlled Substances and Conspiracy to Distribute Controlled Substances.

At today’s hearing, Leal-Hernandez was arraigned and entered a not-guilty plea before U.S. Magistrate Judge Barbara L. Major. The judge granted the government’s request that the defendant be held without bond pending trial. His next court appearance is scheduled for March 10, 2025, for a motion hearing/trial setting in front of U.S. District Court Judge Benjamin J. Cheeks.

The government filed a memorandum today in support of its request for detention that describes Leal-Hernandez as a cell leader who rose through the ranks of the Sinaloa Cartel. The memo said Leal-Hernandez was aligned with the Beltran-Leyva faction of the Sinaloa Cartel, specifically with Fausto Isidro Meza Flores, aka Chapo Isidro. Meza Flores is the co-leader of the Beltran-Leyva faction of the Sinaloa Cartel and was designated by the U.S. Treasury Department’s Office of Foreign Assets Control as a Foreign Narcotics Kingpin.

Between January 2012 and April 2012, law enforcement authorities lawfully intercepted wire and electronic communications between Leal-Hernandez and several of his drug trafficking associates. The wiretap intercepts confirmed that Leal-Hernandez was a leader/organizer of the Beltran-Leyva faction of the Sinaloa Cartel in Tijuana, Mexico and was responsible for supplying drug distributors in Southern California and other destinations within the United States. The wiretap intercepts also confirmed that Leal-Hernandez has committed acts of violence to facilitate his drug trafficking activities.

Further investigation after 2012 until his arrest in 2020 confirmed that Leal-Hernandez remained one of the organization’s leaders, responsible for directing, managing, and overseeing the organization’s drug trafficking in Tijuana.

According to the government’s detention memorandum, Leal-Hernandez oversaw the collection and preparation of large shipments of methamphetamine, cocaine, heroin, and marijuana from Tijuana, Mexico into the United States. He then directed organization members to coordinate the logistics of storing the drugs in the organization’s stash houses and transporting them to the organization’s distributors and customers throughout California and elsewhere in the United States.

“This appearance in an American court is the result of our unwavering pursuit of those who perpetuate violence and push narcotics into our communities,” said U.S. Attorney Tara McGrath. “We will hold traffickers accountable, no matter how long it takes.”

“The arrest and extradition of Leal-Hernandez marks a significant victory in our relentless fight against the deadly scourge of narcotics trafficking. This joint Homeland Security Investigations (HSI) and Drug Enforcement Administration (DEA) investigation was made possible due to the dedication, expertise, and extensive investigative work of our special agents and our invaluable federal law enforcement partners,” said Shawn Gibson, Special Agent in Charge of Homeland Security Investigations in San Diego. “We extend our deepest gratitude to all involved for their unwavering hard work, commitment, and collaboration.”

“Drug traffickers are predators that must be held accountable for the harm they cause,” said DEA Special Agent in Charge Brian Clark. “The capture and extradition of Leal-Hernandez is a reminder to any cartel member that there is nowhere to hide; we will use every tool at our disposal to hold you accountable because no one is beyond the grasp of the DEA and our law enforcement partners.”

“International drug cartels cause immeasurable harm to the American public by importing lethal narcotics and committing acts of violence which terrorize our community,” said FBI San Diego Special Agent in Charge Stacey Moy. “The serious and sustained actions of international drug traffickers will not be tolerated, and we will continue to work closely with our partners to keep our communities safe.”

This case is being prosecuted by Assistant U.S. Attorney Joshua Mellor. The U.S. Marshals Service completed the removal of Leal-Hernandez from Mexico to the Southern District of California.

DEFENDANTS                                             Case Number 20cr1224                                               

Octavio Leal-Hernandez                                Age: 44           Tijuana

SUMMARY OF CHARGES

International Conspiracy to Distribute Controlled Substances, in violation of Title 21, United States Code, Sections 959, 960, and 963

Maximum Penalty: Life, Mandatory Minimum: Ten years

Conspiracy to Distribute Controlled Substances, in violation of Title 21, United States Code, Sections 841(a)(1) and 846.

Maximum penalty: Life, Mandatory Minimum: Ten years

INVESTIGATING AGENCIES

Homeland Security Investigations

Drug Enforcement Administration

Federal Bureau of Investigation

U.S. Coast Guard

The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Leal-Hernandez.

*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) 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.

SAN DIEGO – A federal grand jury has charged three people with defrauding elderly authors across the United States of almost $44 million by convincing the victims that publishers and filmmakers wanted to turn their books into blockbusters — but only if they paid some fees first.

According to the indictment, Gemma Traya Austin of Chula Vista was the organizer and registered agent for PageTurner, Press and Media LLC (“PageTurner”), a Chula Vista company that claimed to be a book publishing business. Michael Cris Traya Sordilla and Bryan Navales Tarosa, both of the Philippines, were executives at Innocentrix Philippines, a business process outsourcing company.

The indictment alleges that between September 2017 and December 2024, the defendants used PageTurner to operate a book publishing scam in which the conspirators working for Innocentrix Philippines contacted individual authors through unsolicited calls and emails. As part of the scam, the conspirators falsely represented that PageTurner was a book publishing business that worked with literary agents, major motion picture studios, and popular video streaming services, and that PageTurner acted as a liaison between individuals who sought to publish their books or have their books turned into motion pictures or television series.

As part of the conspiracy, the scammers falsely told victims their works had been selected for acquisition by publishers or movie studios, and fraudulently convinced victims to send PageTurner payments for various services, including pre-payment of taxes and transaction fees, before the victim-author’s work could be published or optioned to studios.

According to statements made by prosecutors in court, the FBI identified more than 800 victims of the scheme who collectively lost more than $44 million.

Sordilla and Tarosa were arrested on December 9, 2024, in San Diego. Austin was arrested on December 12, 2024, in Chula Vista. All three are charged with conspiracy to commit mail and wire fraud and money laundering conspiracy. The FBI also seized the PageTurner website: pageturner.us.

“What started with the promise of a Hollywood dream turned into a devastating nightmare for victims,” said U.S. Attorney Tara McGrath. “Authors should stay vigilant, do their research, and think twice before giving money to anyone promising a blockbuster deal. If you or anyone you know has been targeted in a similar scheme, please report it to the FBI immediately.”

“As alleged, the defendants’ actions not only jeopardized the integrity of the publishing industry, but also took advantage of innocent professionals and defrauded them of their hard-earned money,” said FBI San Diego Special Agent in Charge Stacey Moy. “Fraud remains one of the most devastating violations the FBI works due to the number of victims and staggering amount of loss. We will continue our efforts to disrupt fraud schemes, educate the public, and ultimately hold individuals behind these schemes accountable.”

“The U.S. Postal Inspection Service San Diego Mail Fraud Team, along with the FBI San Diego, have worked tirelessly to bring justice to individuals who target, exploit, and victimize our most vulnerable citizens,” said Matt Shields, Inspector in Charge for the U.S. Postal Inspection Service’s San Diego Field Office. “The U.S. Postal Inspection Service remains firm in our commitment to disrupt and dismantle foreign-based fraud schemes that prey on our older Americans. We will continue to work side by side with our law enforcement partners to deter and defeat organized fraud rings, no matter where they are located.”

This case is being investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service.

If you believe you are a victim of the PageTurner scam, please contact the FBI at AuthorFraud@fbi.gov.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available through the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). You can also report fraud to any local law enforcement agency or on the FBI’s Internet Crime Complaint Center at www.ic3.gov.

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 24CR2712-JLS

Gemma Traya Austin                                     Age: 58                                  Chula Vista, CA

In custody.  Arrested in Chula Vista, California, on December 12, 2024.

Michael Cris Traya Sordilla                           Age: 32                                   Philippines

In custody.  Arrested in San Diego, California, on December 9, 2024.

Bryan Navales Tarosa                                    Age: 34                                    Philippines                                                                  

In custody.  Arrested in San Diego, California, on December 9, 2024.

SUMMARY OF CHARGES

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

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

Conspiracy to Launder Monetary Instruments – Title 18, U.S.C., Section 1956(h)

Maximum Penalties: Twenty years in prison; maximum fine of $500,000 or twice the amount laundered

INVESTIGATING AGENCIES

Federal Bureau of Investigation

United States Postal Inspection Service

SAN DIEGO –Scott Anthony Sargent of San Diego pleaded guilty in federal court today, admitting that he supplied the fentanyl that caused the fatal overdoses of a 40-year-old woman and a 35-year-old man in North Park in 2022.

San Diego Police officers, along with investigators from the Drug Enforcement Administration’s Overdose Response Team, responded to a 911 call at a home in North Park in the very early hours of November 10, 2022. When law enforcement officials arrived, they found four individuals unresponsive in the home. Two of the individuals were pronounced dead at the scene, while Sargent and another individual were treated with Narcan and transported for medical attention and recovered.

According to the plea agreement, Sargent admitted that he distributed the fatal mix of fentanyl and para-fluorofentanyl (a common fentanyl analogue) to the two victims, causing their deaths.. Investigators linked Sargent to the overdoses through the fentanyl/para-fluorofentanyl mixture found at the overdose location and in a subsequent law enforcement search of Sargent’s storage locker.

Sargent’s backpack was found at the site containing 318 grams of methamphetamine, 26.2 grams of fentanyl/para-fluorofentanyl, and 13 bags of a tan powdery substance weighing 437.9 grams of fentanyl/para-fluorofentanyl. Sargent’s duffel bag, also recovered from the bedroom, contained 30.4 grams of methamphetamine and 11.3 grams of fentanyl/para-fluorofentanyl.

Sargent’s storage locker was searched following his arrest. Inside, officers found two 40 mm semi-automatic handguns, 3.2 kilograms of methamphetamine, 5.44 grams of cocaine, and 113.4 grams of fentanyl/para-fluorofentanyl.

“This result is another reminder that the U.S. Attorney’s Office is tackling the fentanyl crisis at all levels: from suppliers to traffickers to street-level distributors,” said U.S. Attorney Tara McGrath. “Even dealing personal use amounts of fentanyl can result in a federal conviction.”

“A guilty plea cannot undo the lives lost, but it can stand as a stark reminder that those who distribute these drugs will face severe consequences,” said DEA Special Agent in Charge Brian Clark. “Investigating and bringing to justice those who choose to harm our community is exactly what DEA and our partners are committed to doing.”

“Our department, along with federal and local partners, proudly brought justice to the victims of this heartbreaking crime,” said San Diego Police Chief Scott Wahl. “Let this case be a warning to anyone dealing these dangerous drugs in our communities. We will find and prosecute you, just as we did in this case.”

Sargent’s sentencing hearing is set for April 4, 2025, at 9 a.m. before U.S. District Judge Robert Huie.

This case is being prosecuted by Assistant U.S. Attorneys Adam Gordon and Sarah Goldwasser.

Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team led the investigation. This case is the result of ongoing efforts 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.

DEFENDANT                                               Case Number 24cr807-RSH                           

Scott Anthony Sargent                                    Age: 63                                   San Diego, CA

SUMMARY OF CHARGES

Distribution of Fentanyl

21 U.S.C. § 841(a)(1)

Maximum penalty: Twenty years in prison 

INVESTIGATING AGENCIES

Drug Enforcement Administration

San Diego Police Department

Homeland Security Investigations

California National Guard Counterdrug Task Force

California Department of Health Care Services

La Mesa Police Department

San Diego County District Attorney’s Office

NEWS RELEASE SUMMARY – January 13, 2025

SAN DIEGO – Keith Octavio Rodriguez Padilla, a prolific firearms trafficker, was sentenced in federal court today to 19.5 years in custody for his role in supplying weapons and tens of thousands of rounds of ammunition to the Sinaloa Cartel.

This case is part of a long-running investigation targeting the Valenzuela Transnational Criminal Organization (TCO), which was a significant component of the Sinaloa Cartel. The Valenzuela TCO was one of the largest importers of cocaine into the United States. The TCO sourced cocaine and other controlled substances (including fentanyl, heroin, methamphetamine, and marijuana) from South America and Mexico, transported the drugs to multiple locations along the U.S.-Mexico border using commercial trucking companies, smuggled the drugs into the country, and distributed them throughout the United States. The TCO then smuggled the bulk cash proceeds from its drug trafficking activities back to the TCO’s leadership in Mexico.

According to court records, throughout 2020, the Valenzuela TCO, including one of its leaders, Jorge Alberto Valenzuela Valenzuela, was engaged in violent conflict with another component of the Sinaloa Cartel led by Ivan Archivaldo Guzman-Salazar. During this conflict, Jorge’s brother and previous TCO leader, Gabriel Valenzuela-Valenzuela, was killed. This led the Valenzuela TCO to procure large quantities of firearms, ammunition, tactical gear, armored vehicles, and ballistic vests. A considerable number of these items were sourced from within the United States and clandestinely smuggled into Mexico, using numerous arms trafficking networks.

During the multi-year investigation, agents identified Keith Octavio Rodriguez Padilla as a firearms and ammunition trafficker and broker for the TCO. Rodriguez Padilla and his co-conspirators worked with high-ranking organization members to supply firearms to the TCO. These firearms ranged from .50 caliber rifles, submachine guns, and grenade launchers to assault style rifles (AK-47s, AR-15s, FN SCARs) and handguns. In addition to the weapons, Rodriguez Padilla and his co-conspirators supplied tens of thousands of rounds of ammunition to the TCO. Some of these weapons and ammunition were acquired in the United States, including from California, Arizona, and Nevada, and then smuggled through the Ports of Entry in San Diego and Arizona to Mexico.

For example, on November 20, 2020, DEA and HSI agents initiated surveillance at a commercial truck yard being operated by the Valenzuela TCO in the Otay Mesa area of San Diego. Agents ultimately obtained a search warrant for this truck yard and during the search, seized approximately $3,078,880 in bulk U.S. currency, approximately 685 kilograms of cocaine, 24 kilograms of fentanyl, and a pickup truck with a trap gas tank the size of half the truck bed were discovered. The truck yard contained numerous tractors-trailers, along with numerous other vehicles. Inside one of the trailers, agents seized approximately 20,000 rounds of .50 caliber ammunition, along with approximately 427 ballistic plate carriers, approximately 1,000 rounds of .40 caliber ammunition, and approximately 104 magazines for .50 caliber ammunition. Agents learned that Rodriguez Padilla had purchased the .50 caliber ammunition on behalf of the TCO.

To date, this investigation has resulted in charges against 109 defendants and the seizure of approximately 2,000 kilograms of cocaine and fentanyl, more than $16 million in cash, and 21,000 rounds of ammunition.

“Guns and ammunition smuggled into Mexico support cartels and empower drug traffickers,” said U.S. Attorney Tara McGrath. “This case continues to deal blow after blow to that infrastructure, sending a clear message: DOJ will prosecute every angle of cartel operations – from drug importation to money laundering to arms trafficking – to combat death and destruction on both sides of the border.”

“Today’s sentencing is a direct result of the hard work and collaboration between Homeland Security Investigations (HSI) and our law enforcement partners.  This extensive investigation highlights our unwavering commitment to protecting our country and communities from the dangers of illegal firearms trafficking,” said Shawn Gibson, Special Agent in Charge of HSI San Diego. “We will continue to work tirelessly to ensure that the drug trafficking organizations are disrupted and held accountable.”

“Weapons trafficking fuels drug-related violence,” said DEA Special Agent in Charge Brian Clark. “Money and greed are the foundation of the Sinaloa cartel business model and Padilla provided a lifeline by trafficking firearms. This sentence underscores our commitment to aggressively pursue the Sinaloa Cartel at every level, to include all facilitators who profit from drug-related violence. Strong relationships between law enforcement agencies have proven invaluable as we work together to save lives.”

“This multi-year investigation and lengthy federal prison sentence highlights the hard work, dedication, and cooperation of multiple law enforcement agencies to disrupt and dismantle violent transnational criminal organizations,” said FBI Acting Special Agent in Charge Travis Holland.  “Today’s sentence serves as a reminder, we will continue to leverage the strength of federal, state, and local law enforcement to bring justice against the Cartels and individuals working on their behalf.”

“Mr. Padilla’s role in trafficking weapons and ammunition not only facilitated violence between cartel organizations, but also facilitated the endangerment of American citizens as these transnational criminal organizations bring dangerous and deadly drugs into the United States,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “This sentencing demonstrates the result of well-coordinated investigations and the effectiveness of our partnered investigations.  Protecting American citizens is the number one priority for every law enforcement organization, and IRS-CI is proud to be a partner in this investigation.”

This case is being prosecuted by Assistant U.S. Attorneys Matthew J. Sutton and Mikaela Weber.

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 21-cr-2960-AGS                              

Keith Octavio Rodriguez Padilla                   Age: 39                                   Rialto, CA

SUMMARY OF CHARGES

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

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

Conspiracy to Import Cocaine, 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 Cocaine, 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.

Conspiracy to Smuggle Goods, in violation of Title 18, U.S.C. §§ 371 and 554(a).

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

INVESTIGATING AGENCIES

Homeland Security Investigations

Drug Enforcement Administration

Federal Bureau of Investigation

Internal Revenue Service - Criminal Investigation

United States Marshals Service

Customs and Border Protection, Office of Field Operations

Customs and Border Protection, Office of Border Patrol

Department of Justice, Organized Crime Drug Enforcement Task Forces

Department of Justice, Office of Enforcement Operations

Department of Justice, Office of International Affairs

San Diego County Sheriff’s Department

San Diego Police Department

Border Crime Suppression Team

San Diego County District Attorney’s Office

SAN DIEGO – Former U.S. Postal Service employee Dewayne Morris Sr. and his son and namesake were sentenced today to seven years and 12.5 years in prison, respectively, for stealing $5.1 million in postal money order forms and distributing them to co-conspirators.

After a trial in January 2024, a federal jury convicted both defendants of conspiracy and bank fraud charges, finding that Morris Sr. stole the postal money order forms from a post office he supervised, and that Dewayne Morris Jr. distributed those money orders to co-defendants. Eight other defendants were previously sentenced in the Southern District of California for converting the stolen money orders to cash by depositing them at banks throughout the United States.

Several co-conspirators testified at trial that Morris Jr. repeatedly provided them with money orders and counterfeit driver’s licenses, which they used to open bank accounts to deposit the money orders and quickly withdraw the cash. They also testified that Morris Jr. joined them for out-of-state trips to convert the money orders to cash—testimony corroborated by airline records—and that he collected most of the cash proceeds.

Trial evidence included bank records showing Morris Jr. deposited more than $2 million in cash into his bank accounts over the course of the conspiracy. He also paid for his and Morris Sr.’s luxury cars, including a new Mercedes-Benz AMG GT, and extravagant vacations. For example, Morris Jr. paid for their three trips—in a span of just 10 weeks—to Costa Rica, Grand Cayman, and Los Cabos, Mexico, including stays at a Four Seasons Resort and a Ritz-Carlton.

The jury also convicted Morris Jr. of witness tampering while he was on pretrial release. The trial evidence included threatening text messages Morris Jr. sent to the witness and videos that Morris Jr. recorded attempting to get the witness to deny that Morris Jr. ever provided him postal money orders.

“These defendants ran a scheme that tricked banks into cashing millions in stolen postal orders to fund their extravagant greed,” said U.S. Attorney Tara McGrath. “Today’s sentence underscores our commitment to safeguarding the integrity of the U.S. Postal Service while also holding accountable those who defraud financial institutions.”

“This father and son engaged in financial fraud for their personal gain, taking advantage of financial institutions and profiting significantly in the process,” said Matt Shields, United States Postal Inspection Service, Acting Inspector in Charge of the Los Angeles Division. “Today’s sentencing demonstrates that greed and illegal activity will not be tolerated.”

U.S. Postal Service Office of Inspector General, Western Pacific Area Field Office, Acting Executive Special Agent-in-Charge Christopher Paige said “Postal money order fraud schemes negatively impact the American economy and Postal Service operations. Today’s sentencing highlights the commitment of the U.S. Postal Service-Office of Inspector General and our law enforcement partner agencies in protecting the Postal Service from financial loss.”

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

DEFENDANTS                                 Case Number 22-CR-1037-WQH                         

Dewayne Morris Sr.                            Age: 65                                   Inglewood, CA

Dewayne Morris Jr.                            Age: 41                                   Inglewood, CA

SUMMARY OF CHARGES

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

Maximum penalty:  Five years in prison and $250,000 fine or twice the gross pecuniary gain or loss from the offense, whichever is greater

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

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

Witness Tampering—Title 18, U.S.C., Section 1512(b)(1)

Maximum penalty: Twenty years in prison

INVESTIGATING AGENCIES

United States Postal Inspection Service

United States Postal Service, Office of the Inspector General

SAN DIEGO – Prosecutors and an intelligence analyst from the U.S. Attorney’s Office in San Diego have handled more than 60 cases — including nine trials — in support of the massive Department of Justice effort to hold accountable those who violently disrupted a joint session of the U.S. Congress convened to certify the results of the 2020 U.S. presidential election.

As of today, the fourth anniversary of the Jan. 6, 2021, breach of the U.S. Capitol, the Department of Justice has charged more than 1,500 individuals in federal court in the District of Columbia for crimes related to the events of that day. These cases are being prosecuted through a collaboration led by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Five prosecutors and an analyst from San Diego were detailed at various times to the U.S. Attorney’s Office in Washington, D.C., to help them investigate and prosecute these cases.

Each San Diego prosecutor volunteered to join DOJ’s nationwide team and did so with the full support of the United States Attorney’s Office. The Southern District of California, among many other districts across the nation, provided essential assistance to these cases through the time, talents, and experience of federal prosecutors and support staff.

“We are extremely proud of our contribution to this extraordinary investigative and prosecutorial undertaking,” said U.S. Attorney Tara McGrath. “These cases hold accountable the individuals who battered, ransacked, and brought terror into the seat of our democracy. This collective effort has been vital to fortify the rule of law and serves as a reminder that armed threats, violence, and insurrection are not protected under the ruse of a lawful protest.”

Examples of trials handled by the San Diego-based Assistant U.S. Attorneys over the past three years include:

United States v Michael Bradley – 23-cr-0435-RBW – Michael Bradley of Forsyth, Georgia, who swung his baton at police officers as they attempted to fend off rioters during the breach of the U.S. Capitol, was convicted by a judge on August 28, 2024, of multiple felony and misdemeanor offenses, including civil disorder; assaulting, resisting, or impeding certain officers with a deadly or dangerous weapon; entering and remaining in a restricted building or grounds with a deadly or dangerous weapon; disorderly and disruptive conduct in a restricted building or grounds with a deadly or dangerous weapon; and engaging in physical violence in a restricted building or grounds with a deadly or dangerous weapon. He was sentenced on December 17, 2024, to 60 months in prison for his part in the sweeping violence. For further information please see https://www.justice.gov/usao-dc/pr/georgia-man-sentenced-prison-assaulting-law-enforcement-and-other-offenses-during-jan-6

United States v. Michael Sparks –21-cr-87-TJK – Michael Sparks of Elizabethtown, Kentucky, the first rioter to enter the Capitol building, was convicted by a federal jury on March 1, 2024, of felony civil disorder; entering and remaining in a restricted building or grounds; disorderly and disruptive conduct in a restricted building or grounds; disorderly conduct in a Capitol building; and parading, demonstrating, or picketing in a Capitol building. On August 27, 2024, he was sentenced to 53 months in prison. Please see https://www.justice.gov/usao-dc/pr/kentucky-man-sentenced-prison-felony-and-misdemeanor-charges-actions-during-jan-6.

United States v. Ronald Colton McAbee – 21-cr-0035-RC – Ronald Colton McAbee of Unionville, Tennessee, who assaulted multiple police officers, to include dragging one down a set of stairs in front of the Lower West Terrace Tunnel, was convicted on all counts by a federal jury on October 22, 2023, of inflicting bodily injury on an officer; civil disorder; entering or remaining in a restricted building or grounds with a deadly or dangerous weapon; disorderly or disruptive conduct in a restricted building or grounds with a deadly or dangerous weapon; and engaging in physical violence in a restricted building or grounds with a deadly or dangerous weapon. He was sentenced on February 29, 2024, to 70 months in prison. Please see https://www.justice.gov/usao-dc/defendants/mcabee-ronald-colton.

United States v. Ryan Samsel, James Grant, Stephen Randolph, Paul Johnson and Jason Blythe – 21-cr-537-JMC – Ryan Samsel, James Grant, Stephen Randolph, Paul Johnson and Jason Blythe were convicted on February 2, 2024, of various felonies, including assaulting a police officer with a deadly or dangerous weapon or while inflicting bodily injury, following a bench trial. Randolf of Harrodsburg, Kentucky; Grant of Cary, North Carolina; Blythe of Fort Worth, Texas; Samsel of Bristol, Pennsylvania; and Johnson of Lanexa, Virginia, were the first to break through a manned barrier and assault officers, one of whom suffered multiple blows to the head that resulted in a concussion and a loss of consciousness. Samsel went on to assault additional officers. On September 20, 2024, all but Samsel were sentenced for their actions on January 6. Randolph was sentenced to eight years; Grant was sentenced to 36 months; Blythe was sentenced to 30 months; Johnson was sentenced to five years of probation. Samsel is scheduled to be sentenced on February 4, 2025. Please see https://www.justice.gov/usao-dc/defendants/samsel-ryan and https://www.justice.gov/usao-dc/pr/four-men-sentenced-prison-actions-during-jan-6-capitol-breach.

United States v. Douglas Austin Jensen – 21-cr-6-TJK – Douglas Jensen of Des Moines, Iowa was convicted by a jury on September 23, 2022, of assaulting, resisting, or impeding a law enforcement officer; obstruction of an official proceeding; interfering with a law enforcement officer during a civil disorder; entering and remaining in a restricted building or grounds with a dangerous weapon; and disorderly and disruptive conduct in a restricted building or grounds with a dangerous weapon. Video of Jensen leading an angry mob chasing a lone U.S. Capitol Police officer up the stairs to the Senate was widely circulated online in the days following the Capitol attack, and Jensen reported to the FBI that he wanted to be the “poster boy” of January 6. He was sentenced on December 16, 2022, to 60 months in prison. Please see https://www.justice.gov/usao-dc/pr/iowa-man-sentenced-five-years-felony-charges-related-capitol-breach.

United States v. Zachary Alam – 21-cr-190-DLF – Zachary Jordan Alam from Centreville, Virginia was convicted by federal jury on Sept. 12, 2023, of multiple felonies, including assaulting, resisting, or impeding certain officers; assaulting, resisting, or impeding certain officers using a dangerous weapon; civil disorder; destruction of government property; engaging in physical violence in a restricted building with a deadly or dangerous weapon, and related offenses. Alam roamed the building and antagonized officers at the House Main Doors, then went around to a back entrance to the House Chamber as House members and staffers were still evacuating. There he assaulted officers, punched glass door panels with his fists, and once the officers moved, kicked the doors and completely removed the window panels by smashing them with a helmet. On November 7, 2024, he was sentenced to eight years in prison. Please see https://www.justice.gov/usao-dc/pr/virginia-man-sentenced-eight-years-prison-assaulting-law-enforcement-and-other-charges\.

United States v. Jonathan Copeland – 23-cr-224-DLF – On May 8, 2024, Jonathan Copeland of Lima, Ohio, was found guilty after a bench trial of eight crimes, including two counts of felony civil disorder and one count each of assaulting, resisting, or impeding certain officers using a dangerous weapon; entering and remaining in a restricted building or ground with a deadly and dangerous weapon; disorderly and disruptive conduct in a restricted building or grounds with a deadly and dangerous weapon; and engaging in physical violence in a restricted building or ground with a deadly and dangerous weapon. Copeland helped push a barricade into U.S. Capitol Police Officers at the Peace Circle, worked with others to use a massive metal Trump sign as a battering ram to push past the police line at the West Front of the Capitol, and was involved in an altercation with a cameraman. Copeland yelled at the cameraman and shoved him several times, and then a group of rioters attacked the photographer and pushed him off a ledge. On December 2, 2024, Copeland was sentenced to almost 6 years in prison. Please see https://www.justice.gov/usao-dc/pr/ohio-man-sentenced-prison-assaulting-law-enforcement-trump-billboard-and-other-offenses.

United States v. Joshua Black – 21-cr-127-AJB – Joshua Black of Leeds, Alabama, was found guilty following a bench trial on January 13, 2023, of entering and remaining in a restricted building or grounds with a deadly or dangerous weapon; disorderly and disruptive conduct in a restricted building or grounds with a deadly or dangerous weapon; unlawful possession of a dangerous weapon on Capitol grounds or buildings; entering and remaining on the floor of Congress; and disorderly conduct in a Capitol building. As he approached the Capitol building from the West side, Black was part of a violent mob of rioters fighting the police; he was struck by a non-lethal round that wounded his face and caused bleeding. Despite this clear warning to retreat, Black entered the Capitol building and the Senate chamber armed with a knife. On May 16, 2023, he was sentenced to 22 months in prison. Please see https://www.justice.gov/usao-dc/pr/alabama-man-found-sentenced-felony-and-misdemeanor-charges-related-capitol-breach.

*All photos were obtained by the government and admitted as evidence for various trials. 

SAN DIEGO – Business owner Wahead Raz pleaded guilty in federal court today, admitting that he paid an Internal Revenue Service officer $35,000 to wipe away his half million-dollar tax debt.

On July 23, 2024, Raz offered the bribe to an IRS revenue officer during a meeting at the San Diego IRS office to discuss his outstanding tax debt of approximately $500,000. After the meeting, the IRS officer immediately reported the bribe to the Treasury Inspector General for Tax Administration (TIGTA) and agreed to be part of an undercover operation to record Raz’s crime.

“Attempting to bribe an IRS officer is not just a terrible idea—it’s a federal crime,” said U.S. Attorney Tara McGrath. “Not surprisingly, the integrity of the IRS held firm, ensuring this defendant will be accountable for both his unpaid taxes and attempting to undermine the system.”

“Today’s actions send a clear message: Individuals who attempt to bribe IRS officials will be prosecuted for their actions,” said Special Agent in Charge Rod Ammari. “The Treasury Inspector General for Tax Administration (TIGTA) is committed to protecting the integrity and mission of the IRS.  We are grateful for the strong partnership with the U.S. Attorney’s Office that ensured this individual was held accountable for trying to undermine federal tax administration.”

On July 24, 2024, TIGTA conducted a video recorded meeting between the IRS officer and Raz at the IRS office in San Diego. During the meeting, Raz told the IRS officer that he could pay in cash so the bribe would not be traceable.

On July 25, 2024, the IRS officer conducted a recorded telephone call to Raz. During the call, Raz told the IRS officer: “If you save me money, then I’ll take care of you,” and asked the IRS officer to name a price. When the officer asked for $30,000 in exchange for wiping out Raz’s personal tax debt, Raz countered with $20,000. After the IRS officer insisted on $30,000, Raz agreed, offering to pay $10,000 up front and the remaining $20,000 when Raz’s tax debt was cleared.

On July 30, 2024, TIGTA conducted a video and audio recorded meeting between the IRS officer and Raz at a coffee shop in San Diego. During the meeting, Raz provided the previously agreed upon $10,000 cash payment to the IRS officer. Raz also asked the IRS officer to eliminate the approximately $50,000 tax debt owed by Raz’s business and offered to pay the officer an additional $5,000 to have the debt cancelled.

On August 22, 2024, TIGTA conducted a video and audio recorded meeting between the IRS officer and Raz at the same coffee shop in San Diego. During the meeting, Raz gave the officer $15,000 in cash and told the officer he did not have the entire $25,000 as originally agreed upon. Raz promised to provide the remaining $10,000 by the following Wednesday. During the meeting, the officer told Raz that he was taking a big risk by accepting the bribe. Raz stated that he understood the risk taken by the IRS officer and that the officer could go to jail for it.

On August 29, 2024, TIGTA conducted a video and audio recorded meeting between the IRS officer and Raz in San Diego. During that meeting, Raz paid $10,000 in cash to complete the $35,000 bribe payment. Raz asked for assurance that the IRS officer would clear all the taxes owed by Raz and his business. 

During two of the recorded meetings, Raz voluntarily offered to introduce to the IRS officer other “clients” who also owed taxes to the IRS. Raz later indicated that one of those potential “clients” thought it was dangerous for Raz to do this and did not believe it would work out. Raz told the IRS officer that he would introduce the agent to the potential “client” once Raz’s tax debt was cleared.

He is scheduled to be sentenced on March 19, 2025, at 10 a.m. before U.S. District Judge John A. Houston.

This case is being prosecuted by Assistant U.S. Attorney Mark Conover.

DEFENDANT                                               Case Number 24-CR-2647- JAH                               

Wahead Raz                                                    Age: 40                       San Diego, CA

SUMMARY OF CHARGES

Bribery – Title 18, U.S.C., Section 201(b)(1)(A) and (C)

Maximum Penalties: Fifteen years in prison

INVESTIGATING AGENCY

Treasury Inspector General for Tax Administration

*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 – Bryan Kim Bullard pleaded guilty in federal court today to distributing the fentanyl that resulted in the death of a 25-year-old Carlsbad woman. 

According to the plea agreement, on September 9, 2023, Bullard’s co-defendant, Cameron William Fulston, reached out to the victim, identified in court records as D.G., via Facebook messenger. At 8:55 p.m., D.G. left via a Lyft ride-share from her residence in Carlsbad and traveled to an apartment complex in San Diego. She arrived at 9:33 p.m.

The plea agreement said that shortly after 10 p.m., Bullard sold fentanyl to D.G. at the apartment complex. At 11:16 p.m., co-defendant Fulston exited the apartment building. Bullard messaged Fulston about a minute later, asking for “Narcan.” At approximately 12:22 a.m. on September 10, 2023, Bullard called 911 from the victim’s phone, reporting her overdose.

When San Diego Police Department officers responded, Bullard had left the apartment, and D.G. was found in the bathroom, not breathing. San Diego police officers administered CPR until medical personnel arrived to take D.G. to the hospital. Five days after her admittance, D.G. was removed from life support.

Within the apartment, officers found drug paraphernalia and blue pills that tested positive for fentanyl.

Bullard admitted in his plea agreement that when he was arrested on November 16, 2023, he possessed 51.16 grams of a mixture and substance containing fentanyl and 20.84 grams of pure methamphetamine. The parties stipulated that D.G.’s death was caused by the fentanyl distributed by Bullard on September 9, 2023.

“Instead of immediately calling 911 at the first sign of overdose, the defendant’s delay sealed D.G.’s fate,” said U.S. Attorney Tara McGrath. “Today, he was held to account for her death as the U.S. Attorney’s Office battles on for victims of the fentanyl crisis.”

“Fentanyl remains the most deadly drug threat our nation has ever seen,” said DEA Special Agent in Charge Brian Clark. “This loss underscores the gravity of the ongoing fentanyl crisis and strengthens our resolve to bring to justice those who profit by selling fentanyl.”

Bullard is scheduled to be sentenced on March 14, 2025, at 9 a.m.

On September 23, 2024, Cameron William Fulston was found not competent to stand trial. His next court date is a Status Hearing regarding restoration of competency set for January 24, 2025.

This case is being prosecuted by Assistant U.S. Attorneys Jill S. Streja and Adam Gordon.

Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation. This case is the result of ongoing efforts 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.

DEFENDANTS                                             Case Number 24-cr-01063-BAS                            

Bryan Kim Bullard                                         Age: 43                                   San Diego, CA

Cameron William Fulston                              Age: 29                                   Carlsbad, CA

SUMMARY OF CHARGES

Distribution of Fentanyl

21 U.S.C. § 841(a)(1)

Maximum penalty: Twenty years in prison 

INVESTIGATING AGENCIES

Drug Enforcement Administration

San Diego Police Department

San Diego County District Attorney’s Office

Homeland Security Investigations

La Mesa Police Department

California Department of Health Care Services 

NEWS RELEASE SUMMARY

SAN DIEGO – Robert Clonts, a registered sex offender from Borrego Springs, was sentenced in federal court today to 10 years in prison for possessing approximately 147 images of child sex abuse material.

According to court documents, the National Center for Missing and Exploited Children (NCMEC) received information from an online service provider about a customer who uploaded approximately 147 images of child sex abuse material on May 25, 2023. NCMEC provided this information to the Federal Bureau of Investigation, which identified Clonts as the customer who uploaded the child sex abuse material.

Following his arrest in December 2023, Clonts admitted to obtaining and viewing child pornography on a cellular device and other media devices. Clonts also verified his email address and phone number matched the information on the suspect account that uploaded the 147 images containing sexually explicit depictions of prepubescent minors.

Clonts pleaded guilty on August 13, 2024, admitting he possessed images of minors engaged in sexually explicit conduct. According to publicly filed documents in this case, Clonts was previously convicted in 1990 of lewd and lascivious acts with a child under the age of 14, which resulted in his registration as a sex offender.

“This defendant’s actions are a grave violation of both the law and human decency,” said U.S. Attorney Tara McGrath. “Those who put children in jeopardy will face the full force of justice.”

“This sentence should send a clear message that individuals who think they can get away with sexually exploiting children will be vehemently sought by law enforcement and ultimately brought to justice,” said FBI San Diego Special Agent in Charge Stacey Moy. “The FBI and it’s law enforcement partners take great pride in locking up criminals who commit these types of crimes and will remain dedicated to ensuring the safety of all Americans, especially children.”

This case is being prosecuted by Assistant U.S. Attorney Andrew Sherwood.

DEFENDANTS                                             Case Number                         24CR0048-H

Robert Colia Clonts                                        Age: 67                                   Borrego Springs, CA

SUMMARY OF CHARGES

Possession of Images of Minors Engaged in Sexually Explicit Conduct – Title 18, U.S.C., Section 2452(a)(4)(B)

Maximum penalty: Twenty years in prison, and a mandatory minimum prison term of 10 years; $250,000 fine; Supervised release for life; Registration as a sex offender under the Sex Offender Registration and Notification Act

INVESTIGATING AGENCY

Federal Bureau of Investigation

SAN DIEGO – Osemah Elhassen of Sydney, Australia, was sentenced in federal court today to 63 months in prison for participating in a worldwide conspiracy to distribute hardened encrypted communication devices to criminal syndicates to facilitate drug trafficking and other crimes.

Elhassen was one of 17 defendants indicted in San Diego in 2021 in connection with Operation Trojan Shield, an international law enforcement effort in which the FBI secretly operated an encrypted messaging network used by criminals, leading to the arrests of hundreds worldwide.

According to court records, the platform was known as ANOM. While ANOM’s criminal users unknowingly communicated on the system operated by the FBI, agents catalogued more than 27 million messages between users around the world whose criminal discussions were covertly obtained and reviewed by the FBI. The platform was taken down in June 2021. Please see Operation Trojan Shield in 2021.

Elhassen pleaded guilty in May 2024 to Count 1 of a superseding indictment charging him and the others with a racketeering conspiracy in connection with the ANOM enterprise. A citizen of Australia, Elhassen was a Colombia-based distributor of ANOM devices who was also directly involved in drug trafficking and money laundering.

Elhassen admitted that around November 2019, he became a member of the ANOM enterprise. According to his plea agreement, he admitted to helping accomplish the illegal objectives of that enterprise, including drug trafficking, money laundering, and obstruction of justice offenses. To that end, Elhassen distributed ANOM devices to criminal end-users for over a year and a half, and in doing so, facilitated the importation, exportation, and distribution of at least 15 kilograms of cocaine and the laundering of proceeds from the enterprise’s illegal activities.

According to the government’s sentencing filings, Elhassen’s ANOM messages show significant distribution of ANOM devices in Colombia and other places. His messages also show that Elhassen participated in providing ANOM device support and arranging subscription renewals, among other sales and price-setting activity.

Elhassen was arrested in Colombia in June 2021 and was extradited to the Southern District of California in May 2023. He pleaded guilty in May 2024.

“Despite use of sophisticated technology and extreme measures to conceal the criminal enterprise, Mr. Elhassen could not thwart federal investigators,” said U.S. Attorney Tara McGrath. “The sentence today demonstrates that even those who go to the greatest lengths to hide will be held to account.”

“Evidence collected during Operation Trojan Shield showed that distributors of ANOM devices, like Mr. Elhassen, were not merely providing a messaging service but enabling and facilitating Transnational Criminal Organizations,” said FBI San Diego Special Agent in Charge, Stacey Moy. “Today’s sentence should send a strong message to the users and distributors of these types of devices. The FBI will continue to collaborate with domestic and international partners on new and innovative strategies to combat the ever-evolving threat posed by transnational criminal organizations.”

This case is being prosecuted by Assistant U.S. Attorneys Joshua C. Mellor, Mikaela L. Weber, and Peter S. Horn. The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Judicial Attaché Office in Bogota provided significant assistance in securing the arrest and extradition of Elhassen. The United States also thanks Colombian law enforcement authorities for their valuable assistance.

Three other defendants in this case have pleaded guilty, including Dragan Nikitovic, aka Dr. Djek; Edwin Harmendra Kumar, aka Edwin Harmendra Valentine; and Miwand Zakhimi, aka Maiwand Zakhimi. They are scheduled to be sentenced in December 2024 and January 2025. A trial for four other defendants is scheduled for March 10, 2025. Eight other defendants in the case are yet to be extradited to the United States, and one is a fugitive.

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.

DEFENDANT                                               Case Number 21cr1623-JLS-17                                   

Osemah Elhassen                                            Age: 51                                   Sydney, Australia

SUMMARY OF CHARGES

Count 1:  Racketeering Conspiracy – Title 18, U.S.C., 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

Swedish Police Authority

Lithuanian Criminal Police Bureau

National Police of the Netherlands

EUROPOL                                                          

SAN DIEGO – Adriana Camberos (formerly Adriana Shayota) and Andres Camberos, sister and brother, were convicted by a federal jury of multiple fraud charges on October 25, 2024.

Their illegal scheme involved lying to manufacturers to sell wholesale groceries and other goods at steep discounts by promising the goods would be sold in Mexico, or to prisons or rehabilitation facilities. Instead, the defendants sold the products at higher prices to U.S. distributors, for the U.S. market. Wire fraud charges arose from the numerous wire transfers, as well as other interstate communications, the defendants made as they bought products from the manufacturers, transferred money among their own companies to facilitate the scheme, and then re-sold the products at higher prices to U.S. customers.

Following an 11-day trial, the jury found the defendants guilty of eight of 11 counts that went to the jury. Adriana and Andres Camberos were both found guilty of conspiracy to commit wire and mail fraud and seven wire fraud counts, and not guilty of three mail fraud counts.

According to evidence presented at trial, the defendants owned and controlled three businesses: Tradeway International, Inc., doing business as Baja Exporting (owned by Adriana Camberos); Specialty Foods International, Inc., doing business as Promix Co., Prison Food Depot, Rehab Food Depot and Specialty Foods International (owned by Andres Camberos); and Baja Foodservice S.R.L. de C.V. (95% owned by Andres Camberos and managed by Adriana Camberos). Specialty Foods International and Baja Exporting shared a warehouse and office space in San Diego. Baja Foodservice had a warehouse in Tijuana. All three operated together, as sister companies.

Baja Exporting claimed to be an exporter of grocery items and consumer goods to Baja California, Mexico. Similarly, Specialty Foods International, claimed to be a regional distributor of groceries and other goods to retailers in Baja California, Mexico, and to correctional facilities and rehabilitation and wellness facilities within the United States. Baja Foodservice likewise claimed to be a regional distributor in Baja California, Mexico.

The defendants used the three companies—especially Baja Foodservice—to tell manufacturers that they would sell the manufacturers’ products in Mexico, and based on that, they received significant discounts for purported sales, distribution, and exporting to the Baja California market. The defendants also sought discounted goods for Specialty Foods International, d/b/a Prison Food Depot and Rehab Food Depot, based on the claim that they sold products to prisons and rehab facilities.

But the defendants lied. In a years-long scheme, they used their three companies to get those lower prices from manufacturers and resell the products at higher prices to U.S. customers—often the same distributors the victim companies were already selling their products to. Between 2019 and September 2023 alone, Baja Exporting and Specialty Foods International sold hundreds of millions of dollars of products to U.S. distributors; less than a tenth of one percent of their sales were to any Mexican retailer or distributor, and they did no business with prisons or rehab centers.

The defendants took other numerous steps to conceal and perpetuate their fraud. For example, the defendants removed GPS tracking devices from manufacturers’ shipments; removed Spanish-language labels or packaging intended for the Mexican market; obtained Mexican customs documents to try to prove to manufacturers that products were being exported; arranged “market visits” in Tijuana, taking manufacturers’ representatives to various stores in Baja California where they placed the manufacturers’ products—often alongside models who were hired by the defendants’ companies and associates—to create the appearance the products were being sold as promised; had a fake “office” in Mexico City to meet with manufacturers, in an effort to make the companies think the defendants did substantial business in Mexico; and otherwise doubled down on their lies when the victim companies suspected the defendants were diverting their products  and defrauding them.

Baja Exporting and Specialty Foods International made over $58 million in gross profits between January 2019 and September 2023. As owners, the defendants made millions each. In the same time period, Adriana Camberos took in over $12 million from Baja Exporting, and Andres Camberos paid himself over $14 million from Specialty Foods International. This caused manufacturers to lose tens of millions of dollars—money they would have made in the normal course of selling to U.S. distributors, but for the defendants’ lies.

With the money they made from the scheme, Adriana and Andres Camberos made extensive luxury purchases and investments. They bought or financed a Ferrari F12 Berlinetta, a Lamborghini Huracan, and multiple Range Rovers; purchased multiple homes in the San Diego area; purchased a condominium at the beach in Coronado; and put the money in multiple investment accounts, life insurance policies, a cryptocurrency account, and other assets. These and other items are subject to forfeiture.

“These defendants’ deception led to millions in illegal profits, but the gain was fleeting,” said U.S. Attorney Tara McGrath. “When this elaborate scheme unraveled, justice prevailed.”

“The Camberos siblings built a multimillion-dollar empire solely on fraud,” said FBI San Diego Special Agent in Charge Stacey Moy. “This conviction should send a clear message that fraud — no matter the scale — will be thoroughly investigated and those found guilty of perpetrating such schemes will be brought to justice.”

The defendants are scheduled to be sentenced on March 3, 2025, before U.S. District Judge Cynthia Bashant.

This case is being prosecuted by Assistant U.S. Attorneys Joshua Mellor, Peter Horn and Jordan Arakawa.

DEFENDANTS                                             Case Number 23-CR-1916-BAS                            

Adriana Isabel Camberos (aka Adriana Shayota)      Age: 54                       San Diego, CA

Andres Enrique Camberos                                          Age: 45                       San Diego, CA

SUMMARY OF CHARGES

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

Maximum Penalty: Twenty years in prison

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

Maximum Penalty: Twenty years in prison

INVESTIGATING AGENCY

Federal Bureau of Investigation

SAN DIEGO — A federal grand jury in Chicago indicted a high-ranking member of the Sinaloa Cartel for allegedly manufacturing cocaine, fentanyl, and other drugs in Mexico and importing them into the United States.

According to an indictment returned Monday in the Northern District of Illinois, Jose Angel Canobbio Inzunza, 44, served as a principal advisor, lieutenant, and security chief for Ivan Archivaldo Guzman Salazar. Ivan Archivaldo Guzman Salazar, along with his three brothers, allegedly led a faction of the Sinaloa Cartel in Mexico after the arrest and imprisonment of their father, Joaquin Guzman Loera. The indictment alleges Canobbio Inzunza conspired with the brothers — who are known as the “Chapitos” — and others to manufacture cocaine, fentanyl, methamphetamine, and marijuana in Mexico and import the drugs into the United States for further distribution. The indictment states that Canobbio Inzunza financed and led an armed security group known as “Los Chimales,” which provided security for the Guzman faction of the Sinaloa Cartel and engaged in armed conflict to assist the Chapitos in importing drugs into the United States. The Chapitos have been charged in other indictments in the United States within the last year.

Canobbio Inzunza is charged with conspiracy to manufacture and distribute controlled substances for unlawful importation into the United States and to import controlled substances into the United States. If convicted, he faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Canobbio Inzunza is believed to be currently residing in Mexico and a U.S. warrant has been issued for his arrest.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, U.S. Attorney Tara K. McGrath for the Southern District of California, Assistant Director in Charge David Sundberg of the FBI Washington Field Office, Special Agent in Charge Stacey Moy of the FBI San Diego Field Office and Special Agent in Charge Francisco B. Burrola of Homeland Security Investigations (HSI) Arizona made the announcement.

The FBI and HSI are investigating the case.

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

The case is part of an Organized Crime Drug Enforcement Task Forces (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.

A federal grand jury in Chicago indicted a high-ranking member of the Sinaloa Cartel for allegedly manufacturing cocaine, fentanyl, and other drugs in Mexico and importing them into the United States.

According to an indictment returned Monday in the Northern District of Illinois, Jose Angel Canobbio Inzunza, 44, served as a principal advisor, lieutenant, and security chief for Ivan Archivaldo Guzman Salazar. Ivan Archivaldo Guzman Salazar, along with his three brothers, allegedly led a faction of the Sinaloa Cartel in Mexico after the arrest and imprisonment of their father, Joaquin Guzman Loera. The indictment alleges Canobbio Inzunza conspired with the brothers — who are known as the “Chapitos” — and others to manufacture cocaine, fentanyl, methamphetamine, and marijuana in Mexico and import the drugs into the United States for further distribution. The indictment states that Canobbio Inzunza financed and led an armed security group known as “Los Chimales,” which provided security for the Guzman faction of the Sinaloa Cartel and engaged in armed conflict to assist the Chapitos in importing drugs into the United States. The Chapitos have been charged in other indictments in the United States within the last year.

Canobbio Inzunza is charged with conspiracy to manufacture and distribute controlled substances for unlawful importation into the United States and to import controlled substances into the United States. If convicted, he faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Canobbio Inzunza is believed to be currently residing in Mexico and a U.S. warrant has been issued for his arrest.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, Acting U.S. Attorney Morris Pasqual for the Northern District of Illinois, U.S. Attorney Tara K. McGrath for the Southern District of California, Assistant Director in Charge David Sundberg of the FBI Washington Field Office, Special Agent in Charge Stacey Moy of the FBI San Diego Field Office and Special Agent in Charge Francisco B. Burrola of Homeland Security Investigations (HSI) Arizona made the announcement.

The FBI and HSI are investigating the case.

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

The case is part of an Organized Crime Drug Enforcement Task Forces (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.

EL CENTRO – Five indictments were unsealed in federal court today charging 48 alleged members of an Imperial Valley-based, Sinaloa Cartel-linked drug trafficking organization accused of distributing methamphetamine, fentanyl, cocaine, and heroin and bulk cash smuggling.

In a coordinated takedown this morning, more than 140 federal, state, and local law enforcement officials arrested 25 defendants and executed 15 search warrants in Imperial County, San Diego, Los Angeles, and Stockton, as well as in Yuma, Arizona and Las Vegas, Nevada. As of this afternoon, the search continues for 23 fugitives.

Including seizures today and throughout this long-term investigation, authorities have seized more than 3,600 kg (about 8,000 pounds) of methamphetamine; substantial quantities of fentanyl, cocaine, and heroin; and one firearm.

Crimes charged in the indictments include drug trafficking, conspiracy, and bulk cash smuggling.

According to court records, the defendants belonged to a drug trafficking organization based in the Imperial Valley and Mexicali, Mexico with ties to Los Rusos, one of the most violent and significant factions of the Sinaloa Cartel.

“This investigation represents another blow to traffickers of deadly drugs like fentanyl and methamphetamine,” said U.S. Attorney Tara McGrath. “With the indictment of four dozen individuals, we are not only disrupting a major drug trafficking network but also taking significant steps to protect our community from the devastation these drugs cause. We are committed to dismantling these dangerous operations and ensuring that those who fuel the crisis are held accountable.”

“HSI’s challenge with investigating cases tied to the Sinaloa Cartel is to not just chase those who profit from addiction, but to dismantle the transnational network responsible for plaguing our communities and tearing families apart,” said Shawn Gibson, special agent in charge for HSI San Diego. “The success of today’s takedown would not have been possible without the unwavering support and assistance from our law enforcement partners. By working together, we each bring a unique skillset to the fight against these trafficking organizations and can disrupt and dismantle cells like these.”

“This successful operation underscores the pivotal role that collaboration among federal, state, and local law enforcement agencies plays in safeguarding our communities,” stated Roque Caza, Area Port Director for the Calexico Port of Entry. “At U.S. Customs and Border Protection, our mission is to protect the nation’s public by preventing dangerous substances from entering the United States. This joint effort highlights our commitment to disrupting the flow of methamphetamine, fentanyl, cocaine, and heroin, addressing the dangerous impacts on public health and safety. Together, we stand strong in our fight against these illicit activities and remain steadfast in protecting our borders and communities.”

“The Sinaloa Cartel and any other criminal organization will fare poorly here in the Imperial Valley as we have just seen,” said El Centro Sector Border Patrol Chief Gregory Bovino. “With seamless coordination between HSI, the U.S. Attorney’s Office, and a multitude of state and local agencies, yet another set of alleged traffickers and criminals were prevented from harming the community.”

According to court records, employing undercover operations and four rounds of wiretaps, agents conducted numerous controlled purchases, traffic stops of personal vehicles and several tractor trailers, and searches of houses and stash locations leading to large seizures of narcotics. In one instance on April 27, 2022, authorities seized 256 pounds of methamphetamine after intercepting phone conversations between several defendants about a big sale. Federal agents watched the transaction from afar, then conducted a traffic stop on the drug-laden tractor-trailer. Law enforcement officials located four duffel bags containing 256 pounds of methamphetamine in the cab of the truck.

This case is being prosecuted by Assistant U.S. Attorneys Sean Van Demark and Owen Roth.

DEFENDANT                                               Case Number 24cr2316-WQH                         

Adrian Garcia                                                 Age: 28                                   El Centro, CA

SUMMARY OF CHARGES

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.

DEFENDANTS                                             Case Number  24cr2320-WQH

Fausto Herrera-Lopez, AKA “Vecino”*        50                    Mexicali, MX

Rodolfo Ramirez-Palacios, AKA “Rudy”*   34                    Mexicali, MX

Tereso Ramirez-Velasquez                            54                    San Bernadino, CA

Juan Carlos Ojeda-Saldana                            35                    Brawley, CA

Jose David Morales-Rodriguez*                    46                    Brawley, CA

Ernesto Morales-Rodriguez*                          41                    Mexicali, MX

Vicente Barrera-Robles*                                32                    Mexicali, MX

Ricardo Ruben Pinzon                                    24                    El Centro, CA

Jose Ramon Ochoa-Monteverde                    31                    El Centro, CA

Salvador Martinez                                          54                    Los Angeles, CA

Juan Carlos Martinez*                                    52                    Los Angeles, CA

Rogelio Robledo-Valdez*                              26                    Mexicali, MX

Maria Elena Reyes                                          50                    Wichita, KS

Gabriela Estrada*                                           46                    Mexicali, MX

Jaime Mayoral                                                40                    El Centro, CA

Marcos Arturo Barrera                                   28                    Brawley, CA

Oscar Silvas-Gamez                                       32                    Fresno, CA

Juan Ernesto Salas Villela*                            37                    Fontana, CA

Yeiming Hernandez                                        34                    Calexico, CA

Frank Gustavo Zendejas                                 56                    Calipatria, CA

Gerardo Medina Plancencia                           45                    Calexico, CA

Jose Andres Leyva                                          55                    El Centro, CA

Stephanie Melgoza*                                       21                    Salinas, CA

Victor Rene Herrera*                                     24                    Los Angeles, CA

Arnulfo Morfin-Moreno*                               52                    Pasco, WA

Edgar Garcia*                                                 24                    Las Vegas, NV

Roberto Valenzuela De La Torre*                 27                     Sonora, MX

Leonardo Saldivar*                                       38                     San Bernardino, CA

Francisco Ramirez*                                       52                    Tolleson, Arizona

Luis Fernando Simental Palacios*                34                     Mexicali, MX

Abraham Noe Esparza-Garcia*                     36                      Mexicali, MX

Angelica Guerrero                                        29                      Calexico, CA

Sergio Sanchez                                             46                      Long Beach, CA

Nicholas Adam Fortier                                  41                      Portland, OR

Luis Alberto Felix*                                        38                      Pacoima, CA

Elizabeth Echeverria                                      43                      Las Vega, NV

Pedro Estrada*                                              50                      San Diego, CA

Bernadette Lucero Vallejos*                          33                      Goodyear, AZ

Maribel Garcia Barajas                                  56                      El Centro, CA

Jose Arturo Mendiola Porras*                       57                      Mexicali, MX

Enrique Villalobos                                         43                      Stockton, CA

Israel Alejandro Ramirez-Velasquez             60                      Perris, 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

Possession of Controlled Substances with Intent to Distribute – 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

Bulk Cash Smuggling – Title 31, U.S.C., Section 5332(a) and (b)

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

Conspiracy to Commit Bulk Cash Smuggling – Title 18, U.S.C., Section 371

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

DEFENDANT                                               Case Number 24cr2318-WQH                         

Nilda Charlenne Ledon                                   Age: 34                                   El Centro, CA

SUMMARY OF CHARGES

Bulk Cash Smuggling – Title 31, U.S.C., Section 5332(a) and (b)

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

DEFENDANT                                               Case Number 24cr2319-WQH                         

Jasmine Santos                                                Age: 34                                   Los Angeles, CA

SUMMARY OF CHARGES

Bulk Cash Smuggling – Title 31, U.S.C., Section 5332(a) and (b)

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

DEFENDANT                                               Case Number 24cr217-WQH                         

Brenda Lara*                                                  Age: 32                                   Los Angeles, CA

Romulada Contreras*                                     Age: 75                                   Mexicali, MX

SUMMARY OF CHARGES

Conspiracy to Commit Bulk Cash Smuggling – Title 18, U.S.C., Section 371

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

Bulk Cash Smuggling – Title 31, U.S.C., Section 5332(a) and (b)

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

*Fugitives

INVESTIGATING AGENCIES

Homeland Security Investigations, Calexico Office

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

United States Postal Inspectors

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

Brawley Police Department

San Bernardino Police Department Narcotics Unit

California Highway Patrol

El Centro Police Department

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

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 operation 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.

EL CENTRO – Five indictments were unsealed in federal court today charging 48 alleged members of an Imperial Valley-based, Sinaloa Cartel-linked drug trafficking organization accused of distributing methamphetamine, fentanyl, cocaine, and heroin and bulk cash smuggling.

In a coordinated takedown this morning, more than 140 federal, state, and local law enforcement officials arrested 25 defendants and executed 15 search warrants in Imperial County, San Diego, Los Angeles, and Stockton, as well as in Yuma, Arizona and Las Vegas, Nevada. As of this afternoon, the search continues for 23 fugitives.

Including seizures today and throughout this long-term investigation, authorities have seized more than 3,600 kg (about 8,000 pounds) of methamphetamine; substantial quantities of fentanyl, cocaine, and heroin; and one firearm.

Crimes charged in the indictments include drug trafficking, conspiracy, and bulk cash smuggling.

According to court records, the defendants belonged to a drug trafficking organization based in the Imperial Valley and Mexicali, Mexico with ties to Los Rusos, one of the most violent and significant factions of the Sinaloa Cartel.

“This investigation represents another blow to traffickers of deadly drugs like fentanyl and methamphetamine,” said U.S. Attorney Tara McGrath. “With the indictment of four dozen individuals, we are not only disrupting a major drug trafficking network but also taking significant steps to protect our community from the devastation these drugs cause. We are committed to dismantling these dangerous operations and ensuring that those who fuel the crisis are held accountable.”

“HSI’s challenge with investigating cases tied to the Sinaloa Cartel is to not just chase those who profit from addiction, but to dismantle the transnational network responsible for plaguing our communities and tearing families apart,” said Shawn Gibson, special agent in charge for HSI San Diego. “The success of today’s takedown would not have been possible without the unwavering support and assistance from our law enforcement partners. By working together, we each bring a unique skillset to the fight against these trafficking organizations and can disrupt and dismantle cells like these.”

“This successful operation underscores the pivotal role that collaboration among federal, state, and local law enforcement agencies plays in safeguarding our communities,” stated Roque Caza, Area Port Director for the Calexico Port of Entry. “At U.S. Customs and Border Protection, our mission is to protect the nation’s public by preventing dangerous substances from entering the United States. This joint effort highlights our commitment to disrupting the flow of methamphetamine, fentanyl, cocaine, and heroin, addressing the dangerous impacts on public health and safety. Together, we stand strong in our fight against these illicit activities and remain steadfast in protecting our borders and communities.”

“The Sinaloa Cartel and any other criminal organization will fare poorly here in the Imperial Valley as we have just seen,” said El Centro Sector Border Patrol Chief Gregory Bovino. “With seamless coordination between HSI, the U.S. Attorney’s Office, and a multitude of state and local agencies, yet another set of alleged traffickers and criminals were prevented from harming the community.”

According to court records, employing undercover operations and four rounds of wiretaps, agents conducted numerous controlled purchases, traffic stops of personal vehicles and several tractor trailers, and searches of houses and stash locations leading to large seizures of narcotics. In one instance on April 27, 2022, authorities seized 256 pounds of methamphetamine after intercepting phone conversations between several defendants about a big sale. Federal agents watched the transaction from afar, then conducted a traffic stop on the drug-laden tractor-trailer. Law enforcement officials located four duffel bags containing 256 pounds of methamphetamine in the cab of the truck.

This case is being prosecuted by Assistant U.S. Attorneys Sean Van Demark and Owen Roth.

DEFENDANT                                               Case Number 24cr2316-WQH                         

Adrian Garcia                                                 Age: 28                                   El Centro, CA

SUMMARY OF CHARGES

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.

DEFENDANTS                                             Case Number  24cr2320-WQH

Fausto Herrera-Lopez, AKA “Vecino”*        50                    Mexicali, MX

Rodolfo Ramirez-Palacios, AKA “Rudy”*   34                    Mexicali, MX

Tereso Ramirez-Velasquez                            54                    San Bernadino, CA

Juan Carlos Ojeda-Saldana                            35                    Brawley, CA

Jose David Morales-Rodriguez*                    46                    Brawley, CA

Ernesto Morales-Rodriguez*                          41                    Mexicali, MX

Vicente Barrera-Robles*                                32                    Mexicali, MX

Ricardo Ruben Pinzon                                    24                    El Centro, CA

Jose Ramon Ochoa-Monteverde                    31                    El Centro, CA

Salvador Martinez                                          54                    Los Angeles, CA

Juan Carlos Martinez*                                    52                    Los Angeles, CA

Rogelio Robledo-Valdez*                              26                    Mexicali, MX

Maria Elena Reyes                                          50                    Wichita, KS

Gabriela Estrada*                                           46                    Mexicali, MX

Jaime Mayoral                                                40                    El Centro, CA

Marcos Arturo Barrera                                   28                    Brawley, CA

Oscar Silvas-Gamez                                       32                    Fresno, CA

Juan Ernesto Salas Villela*                            37                    Fontana, CA

Yeiming Hernandez                                        34                    Calexico, CA

Frank Gustavo Zendejas                                 56                    Calipatria, CA

Gerardo Medina Plancencia                           45                    Calexico, CA

Jose Andres Leyva                                          55                    El Centro, CA

Stephanie Melgoza*                                       21                    Salinas, CA

Victor Rene Herrera*                                     24                    Los Angeles, CA

Arnulfo Morfin-Moreno*                               52                    Pasco, WA

Edgar Garcia*                                                 24                    Las Vegas, NV

Roberto Valenzuela De La Torre*                 27                     Sonora, MX

Leonardo Saldivar*                                       38                     San Bernardino, CA

Francisco Ramirez*                                       52                    Tolleson, Arizona

Luis Fernando Simental Palacios*                34                     Mexicali, MX

Abraham Noe Esparza-Garcia*                     36                      Mexicali, MX

Angelica Guerrero                                        29                      Calexico, CA

Sergio Sanchez                                             46                      Long Beach, CA

Nicholas Adam Fortier                                  41                      Portland, OR

Luis Alberto Felix*                                        38                      Pacoima, CA

Elizabeth Echeverria                                      43                      Las Vega, NV

Alvaro Guerrero                                            46                      Los Angeles, CA

Pedro Estrada*                                              50                      San Diego, CA

Bernadette Lucero Vallejos*                          33                      Goodyear, AZ

Maribel Garcia Barajas                                  56                      El Centro, CA

Jose Arturo Mendiola Porras*                       57                      Mexicali, MX

Enrique Villalobos                                         43                      Stockton, CA

Israel Alejandro Ramirez-Velasquez             60                      Perris, 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

Possession of Controlled Substances with Intent to Distribute – 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

Bulk Cash Smuggling – Title 31, U.S.C., Section 5332(a) and (b)

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

Conspiracy to Commit Bulk Cash Smuggling – Title 18, U.S.C., Section 371

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

DEFENDANT                                               Case Number 24cr2318-WQH                         

Nilda Charlenne Ledon                                   Age: 34                                   El Centro, CA

SUMMARY OF CHARGES

Bulk Cash Smuggling – Title 31, U.S.C., Section 5332(a) and (b)

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

DEFENDANT                                               Case Number 24cr2319-WQH                         

Jasmine Santos                                                Age: 34                                   Los Angeles, CA

SUMMARY OF CHARGES

Bulk Cash Smuggling – Title 31, U.S.C., Section 5332(a) and (b)

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

DEFENDANT                                               Case Number 24cr217-WQH                         

Brenda Lara*                                                  Age: 32                                   Los Angeles, CA

Romulada Contreras*                                     Age: 75                                   Mexicali, MX

SUMMARY OF CHARGES

Conspiracy to Commit Bulk Cash Smuggling – Title 18, U.S.C., Section 371

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

Bulk Cash Smuggling – Title 31, U.S.C., Section 5332(a) and (b)

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

*Fugitives

INVESTIGATING AGENCIES

Homeland Security Investigations, Calexico Office

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

United States Postal Inspectors

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

Brawley Police Department

San Bernardino Police Department Narcotics Unit

California Highway Patrol

El Centro Police Department

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

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 operation 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.

SAN DIEGO – Leonard Glenn Francis, mastermind of an unprecedented bribery and fraud scheme targeting the U.S. Navy, was sentenced in federal court today to 180 months in prison and ordered to pay $20 million in restitution to the Navy and a $150,000 fine. Francis was also ordered to forfeit $35 million in ill-gotten proceeds from his crimes.

Francis’ sentence reflects admissions in his first guilty plea in 2015 concerning bribery and fraud, his extensive cooperation with the government, and his guilty plea today for failing to appear for his original sentencing hearing in 2022. U.S. District Judge Janis L. Sammartino handed down a 164-month sentence for bribery and fraud and 16 months for failing to appear, to be served consecutively.

Francis admitted today in his second plea agreement that he fled the country to avoid his sentencing hearing in September 2022. Around September 4, 2022, while he was on house arrest, Francis cut off a GPS monitor he was required to wear and disappeared, first fleeing to Mexico, then Cuba, and ultimately, Venezuela. He was later arrested in Venezuela and brought back to the U.S. on December 20, 2023.

"Leonard Francis lined his pockets with taxpayer dollars while undermining the integrity of U.S. Naval forces,” said U.S. Attorney Tara McGrath. “The impact of his deceit and manipulation will be long felt, but justice has been served today.”

Francis, 60, a Malaysian citizen most recently living in Singapore, was initially arrested in San Diego on September 16, 2013, and remained in pretrial custody until December 18, 2017, when the court granted his request for release pending sentencing due to a medical condition. Francis served four years and three months in custody before he was released on bond and ordered into house arrest. He remained on bond under the supervision of U.S. Pretrial Services for almost five years, from December 17, 2017, until he fled the U.S. on September 4, 2022. He has remained in custody in the U.S. since his return on December 20, 2023. Based on today’s sentence and the court’s finding that Francis has so far served 2,333 days of his sentence - including time spent in custody in Venezuela at the request of the U.S. government - Francis has an estimated 8.5 years remaining.

According to admissions in his initial 2015 plea agreement, and other court documents, Francis and his company, Glenn Defense Marine Asia, or GDMA, which provided services to U.S. Navy ships in Asia Pacific ports, gave co-conspirators millions of dollars in things of value, including over $500,000 in cash; hundreds of thousands of dollars in the services of prostitutes and associated expenses; hundreds of thousands of dollars in travel expenses, including airfare, often first or business class, luxurious hotel stays, incidentals, and spa treatments; hundreds of thousands of dollars in lavish meals, top-shelf alcohol and wine, and entertainment; and hundreds of thousands of dollars in luxury gifts, including designer handbags and leather goods, watches, fountain pens, Kobe beef, Spanish suckling pigs, designer furniture, Cuban cigars, consumer electronics, ornamental swords, and hand-made ship models.

Francis admitted that in return, U.S. Navy personnel and command staff advocated on behalf of Francis and his company during the procurement process and provided classified information about various U.S. Navy ships’ port visits, proprietary U.S. Navy information such as details about competitors’ bids for U.S. Navy contracts, and information about Naval Criminal Investigative Service and U.S. Navy investigations into GDMA’s practices, among other things.

In his 2015 plea agreement, Francis also admitted to defrauding the U.S. Navy of tens of millions of dollars by routinely overbilling for goods and services provided, including fuel, tugboats, and sewage disposal.

GDMA the corporation was also sentenced today to five years of probation and ordered to pay a $36 million fine.

According to the government’s sentencing memo, Francis’ scheme to defraud the United States over many years and the entrenched bribery and corruption he fostered within the U.S. Navy were aggravated and egregious. By contrast, once caught, he pleaded guilty, and cooperated extensively with authorities.

Over the course of several years, Francis met with government investigators dozens of times to discuss unprecedented levels of corruption within the U.S. Navy. Francis provided detailed information about hundreds of Sailors, from petty officers to admirals, and turned over financial records, photographs, receipts and Navy contracting documents. Corroborated information from Francis substantially assisted the United States in its investigation.

“Mr. Francis’ sentencing brings closure to an expansive fraud scheme that he perpetrated against the U.S. Navy with assistance from various Navy officials. This fraud conspiracy ultimately cost the American taxpayer millions of dollars and weakened the public’s trust in some of our Navy’s senior leaders. Mr. Francis’ actions not only degraded the 7th Fleet’s readiness but shook the Fleet’s trust in its leadership who furthered his corrupt practices,” said Kelly P. Mayo, the Director of the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS). “The exhaustive joint investigation exemplifies the lengths DCIS and its investigative partners will go to in order to pursue justice for the American taxpayer and our warfighters.  DCIS will continue to protect our nation’s precious resources so they are not lost to illicit schemes that only serve one’s greed and self-aggrandizement to the detriment of our national security.”

“Leonard Francis put the safety of our warfighters and Department of Navy assets at risk,” said NCIS Director Omar Lopez. “He disregarded the law and lined his pockets by bribing U.S. Navy officials and others to exploit sensitive national security information. NCIS remains committed to protecting Department of the Navy personnel and resources. As we reach the final sentencing in this complex and intensive procurement fraud investigation that spanned over a decade, I want to thank the countless NCIS professionals and partner agencies involved.”

DEFENDANT                                   Case Numbers: 13-CR-3781, 3782 and 4287                       

Leonard Glenn Francis                       Age: 60           Singapore

Glenn Defense Marine Asia Pte. Ltd.                         Singapore

SUMMARY OF CHARGES

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

Maximum penalty: Five years in prison, $250,000 fine or twice the gross pecuniary gain or loss from the offense, whichever is greater

Bribery, in violation of 18 U.S.C. §201

Maximum Penalty: Fifteen years in prison, $250,000 fine or twice the gross pecuniary gain or loss from the offense, whichever is greater. Mandatory restitution

Conspiracy to Defraud the United States, in violation of in violation of 18 U.S.C. §371

Maximum Penalty: Five years in prison $250,000 fine or twice the gross pecuniary gain or loss from the offense, whichever is greater. Mandatory restitution

Failure to Appear, in violation of 18 U.S.C. §3146

Maximum Penalty: Ten years in prison

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

Defense Contract Audit Agency

SAN DIEGO – After an eight-day trial, a federal jury has convicted Denny Thakorbhai Bhakta on all 25 counts of securities fraud, bank fraud and money laundering in connection with a $35 million dollar investment fraud scheme and COVID-relief fraud scheme.

Bhakta’s uncle, who was swindled out of $4.5 million, testified during the trial that he came to the U.S. as an immigrant, with only 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.” Bhatka’s fraud scheme targeting numerous victims, including a childhood friend who lost hundreds of thousands of dollars; a friend of his family who lost $1.6 million; a high school classmate and her father who together lost more than $800,000; a cousin who lost $40,000; and an 88-year-old investor who was defrauded out of  $50,000.

“This sophisticated scheme unraveled after several victims came forward and exposed the fraud,” said U.S. Attorney Tara McGrath. “Many of the victims are people who represent the best of us—hard working, honest Americans who made investments based on a trusted relationship. The jury’s verdict is a resounding affirmation that justice will prevail over deceit.”

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 and other companies 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 a Mercedez-Benz S-Class and a Porsche 911 Turbo S.

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

As prosecutors argued at trial, 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, and unbeknownst to his victim/investors, 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.

Bhakta was remanded into custody after the jury’s verdict. A sentencing hearing is set for January 25, 2025, at 9:00 a.m. in Courtroom 4D.

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

The Securities and Exchange Commission has also take civil action against the defendant.

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 million 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 AGENCIES

Federal Bureau of Investigation

U.S. Securities and Exchange Commission, Los Angeles Regional Office

SAN DIEGO – Jacob Enriquez of El Centro, California pleaded guilty in federal court today, admitting that he sent a threatening email directed at a U.S. Drug Enforcement Administration agent and his family.

Enriquez was charged on June 6, 2024. He pleaded guilty to Interstate Threatening Communication for sending a threatening and disturbing email directed at a DEA Agent. The profanity-laden email, which was sent to an email account belonging to Emergency Medical Services Agency in Imperial County, threatened to torture and kill the DEA agent and the agent’s children and made it clear that Enriquez knew where the agent lived.

Enriquez admitted that he sent this email knowing that it would be viewed as threats of violence against the DEA agent and his family.

Enriquez also admitted to sending threatening emails to the El Centro Police Chief and a doctor’s office in El Centro.

“Words have consequences,” said U.S. Attorney Tara McGrath. “And the consequences of threatening others with violence is a felony conviction.”

This case is being prosecuted by Assistant U.S. Attorneys Andrew Sherwood and Joseph Orabona.

The defendant is scheduled to be sentenced on January 31, 2025.

DEFENDANT                                   Case Number 24cr1330-CAB                                   

Jacob Enriquez                                   Age: 43                                   El Centro, CA

SUMMARY OF CHARGES

Interstate Threatening Communication – Title 18, U.S.C., Section 875(c)

Maximum penalty: Five years in prison, with a mandatory minimum of 15 years in prison and a $250,000 fine

INVESTIGATING AGENCY

Federal Bureau of Investigation

SAN DIEGO – A federal grand jury has returned an indictment charging Cask Technologies, LLC and former company executive Mark Larsen with bribing a government employee to win lucrative government contracts.

According to court records, Larsen and his subordinates at Cask gave former Naval Information Warfare Center employee James Soriano various things of value, including expensive meals, golf outings, and full-time jobs for Soriano’s close family friend and immediate family member. At the time of the conspiracy, Larsen was the director, and later the managing director, vice president, and executive vice president of Cask with offices in San Diego and Stafford, Virginia.

In return, Soriano took official action to benefit Cask, such as steering non-competitive small business contracts to Cask and its “family” of companies; allowing Larsen and other Cask employees to draft procurement documents for various contracting efforts, including competitive procurements; and allowing Larsen and others to “ghost write” emails, official government correspondence, and performance evaluations for Soriano’s signature, all to benefit Cask and others in its “family” of companies.

Soriano also agreed in an email exchange to “create & award” a $50 million supposedly competitive contract for services to Cask. Soriano then allowed Cask to draft the contract requirements and the price the government was expected to pay, and took other actions to ensure that Cask was awarded the “competitive” contract.

To conceal their activities, Larsen, Cask and Soriano failed to disclose organizational conflicts of interest in relation to their contracting efforts and that Cask was affiliated to other companies in its “family” of companies, including two Native Hawaiian 8(a) companies that were subcontracting millions of dollars of work on 8(a) contracts to Cask.

Soriano has already pleaded guilty to multiple bribery schemes, including facts related to his relationship with Larsen and Cask. He is scheduled to be sentenced in May 2025.

“Defense contracts support our military, and as such play an important role in keeping us all safe,” said U.S. Attorney Tara K. McGrath. “Allowing bribery and corruption to dictate who obtains those important contracts undermines the system and dishonors our defense operations.”

“This newest indictment is another constructive step toward accountability in this ongoing multi-year investigation,” said Bryan D. Denny, Special Agent in Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Western Field Office. “Mr. Larsen and Cask Technologies are accused of feeding their own greed by knowingly corrupting the government’s acquisition process and some government officials at the expense of our nation’s warfighters and taxpayers.”

“The allegations in this case highlight the serious repercussions of undermining the integrity of the Department of the Navy’s procurement process. By prioritizing personal gain over fair competition, such actions can compromise the readiness and, potentially, the safety of our warfighters,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “We, alongside our investigative partners, are committed to exposing unlawful activity and restoring public trust in the systems designed to protect our nation’s security.”

“This case demonstrates our commitment to working with our law enforcement partners to root out fraud and corruption in government contracting,” said Weston King, SBA OIG Western Region Special Agent in Charge. “These defendants are accused of working together to exploit the 8(a) program, actions that would defraud the government but also compromise the integrity of the program designed to uplift deserving entrepreneurs. I would like to thank the U.S. Attorney’s Office and law enforcement partners for their continued pursuit of justice and holding accountable those who engage in fraudulent schemes.”

“This indictment demonstrates IRS CI’s commitment to leaving no stone unturned when we investigate DOD contract fraud,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “Those who undermine the DOD contracting process put our warfighters at risk, and we will not rest on a case until we find all complicit parties and the evidence necessary to bring them to court.”

This case is being prosecuted by Assistant U.S. Attorneys Patrick Swan and Katherine McGrath.

DEFENDANTS                                 Case Number 24cr2111-TWR                       

Mark Larsen                                        Age: 46                                   San Diego, CA

Cask Technologies, LLC                                                                   Stafford, VA

SUMMARY OF CHARGES

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

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

Bribery – Title 18, U.S.C., Section 201

Maximum penalty: Fifteen years in prison; $250,000 fine for an individual or $500,000 for an organization, or three times the monetary equivalent of the thing of value, whichever is greater.

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

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

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 – Adriana Camberos (formerly Adriana Shayota) and Andres Camberos, sister and brother, were convicted by a federal jury of multiple fraud charges on October 25, 2024. 

Their illegal scheme involved lying to manufacturers to sell wholesale groceries and other goods at steep discounts by promising the goods would be sold in Mexico, or to prisons or rehabilitation facilities. Instead, the defendants sold the products at higher prices to U.S. distributors, for the U.S. market. 

Wire fraud charges arose from the numerous wire transfers, as well as other interstate communications, the defendants made as they bought products from the manufacturers, transferred money among their own companies to facilitate the scheme, and then re-sold the products at higher prices to U.S. customers.

Following an 11-day trial, the jury found the defendants guilty of eight of 11 counts that went to the jury. Adriana and Andres Camberos were both found guilty of conspiracy to commit wire and mail fraud and seven wire fraud counts, and not guilty of three mail fraud counts.

According to evidence presented at trial, the defendants owned and controlled three businesses: Tradeway International, Inc., doing business as Baja Exporting (owned by Adriana Camberos); Specialty Foods International, Inc., doing business as Promix Co., Prison Food Depot, Rehab Food Depot and Specialty Foods International (owned by Andres Camberos); and Baja Foodservice S.R.L. de C.V. (95% owned by Andres Camberos and managed by Adriana Camberos). Specialty Foods International and Baja Exporting shared a warehouse and office space in San Diego. Baja Foodservice had a warehouse in Tijuana. All three operated together, as sister companies.

Baja Exporting claimed to be an exporter of grocery items and consumer goods to Baja California, Mexico. Similarly, Specialty Foods International, claimed to be a regional distributor of groceries and other goods to retailers in Baja California, Mexico, and to correctional facilities and rehabilitation and wellness facilities within the United States. Baja Foodservice likewise claimed to be a regional distributor in Baja California, Mexico.

The defendants used the three companies—especially Baja Foodservice—to tell manufacturers that they would sell the manufacturers’ products in Mexico, and based on that, they received significant discounts for purported sales, distribution, and exporting to the Baja California market. The defendants also sought discounted goods for Specialty Foods International, d/b/a Prison Food Depot and Rehab Food Depot, based on the claim that they sold products to prisons and rehab facilities.

But the defendants lied. In a years-long scheme, they used their three companies to get those lower prices from manufacturers and resell the products at higher prices to U.S. customers—often the same distributors the victim companies were already selling their products to. Between 2019 and September 2023 alone, Baja Exporting and Specialty Foods International sold hundreds of millions of dollars of products to U.S. distributors; less than a tenth of one percent of their sales were to any Mexican retailer or distributor, and they did no business with prisons or rehab centers.

The defendants took other numerous steps to conceal and perpetuate their fraud. For example, the defendants removed GPS tracking devices from manufacturers’ shipments; removed Spanish-language labels or packaging intended for the Mexican market; obtained Mexican customs documents to try to prove to manufacturers that products were being exported; arranged “market visits” in Tijuana, taking manufacturers’ representatives to various stores in Baja California where they placed the manufacturers’ products—often alongside models who were hired by the defendants’ companies and associates—to create the appearance the products were being sold as promised; had a fake “office” in Mexico City to meet with manufacturers, in an effort to make the companies think the defendants did substantial business in Mexico; and otherwise doubled down on their lies when the victim companies suspected the defendants were diverting their products  and defrauding them.

Baja Exporting and Specialty Foods International made over $58 million in gross profits between January 2019 and September 2023. As owners, the defendants made millions each. In the same time period, Adriana Camberos took in over $12 million from Baja Exporting, and Andres Camberos paid himself over $14 million from Specialty Foods International. This caused manufacturers to lose tens of millions of dollars—money they would have made in the normal course of selling to U.S. distributors, but for the defendants’ lies.

With the money they made from the scheme, Adriana and Andres Camberos made extensive luxury purchases and investments. They bought or financed a Ferrari F12 Berlinetta, a Lamborghini Huracan, and multiple Range Rovers; purchased multiple homes in the San Diego area; purchased a condominium at the beach in Coronado; and put the money in multiple investment accounts, life insurance policies, a cryptocurrency account, and other assets. These and other items are subject to forfeiture.

“These defendants’ deception led to millions in illegal profits, but the gain was fleeting,” said U.S. Attorney Tara McGrath. “When this elaborate scheme unraveled, justice prevailed.”

“The Camberos siblings built a multimillion-dollar empire solely on fraud,” said FBI San Diego Special Agent in Charge Stacey Moy. “This conviction should send a clear message that fraud — no matter the scale — will be thoroughly investigated and those found guilty of perpetrating such schemes will be brought to justice.”

The defendants are scheduled to be sentenced on March 3, 2025, before U.S. District Judge Cynthia Bashant.

This case is being prosecuted by Assistant U.S. Attorneys Joshua Mellor, Peter Horn and Jordan Arakawa.

DEFENDANTS                                             Case Number 23-CR-1916-BAS                              

Adriana Isabel Camberos (aka Adriana Shayota)      Age: 54                       San Diego, CA

Andres Enrique Camberos                                          Age: 45                       San Diego, CA

SUMMARY OF CHARGES

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

Maximum Penalty: Twenty years in prison

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

Maximum Penalty: Twenty years in prison

INVESTIGATING AGENCY

Federal Bureau of Investigation

SAN DIEGO – U.S. Navy Captain Theodore E. Essenfeld was sentenced in federal court today to 37 months in prison for cyberstalking and stealing the identity of his former girlfriend. 

“Today’s sentencing marks the end of this perpetrator’s reign of cyber terror,” said U.S. Attorney Tara McGrath. “Cyberstalking is not just a nuisance or harmless prank; it’s a serious crime with devastating consequences. The torment this victim endured has profoundly impacted her life, and those who think they can hide behind a screen should know that justice will prevail.

During the hearing, U.S. District Judge Robert S. Huie acknowledged the ordeal of the victim, saying, “I commend her courage and strength for coming forward.”

Essenfeld was convicted by a federal jury in June. During the four-day trial, the United States presented evidence that Essenfeld created imposter Facebook, LinkedIn, email, and cellular phone accounts using the woman’s name, biographical information, and photographs without her knowledge or consent. Posing as the victim, Essenfeld posted erotic and sexually explicit content to the Facebook account, as well as graphic media files or “memes,” many of which were sexually demeaning to women. 

In addition to the materials posted on the imposter Facebook account, the United States presented evidence that Essenfeld joined Facebook dating groups using the imposter account and interacted with numerous other Facebook users while impersonating the victim, including “liking” other users’ posts, sending messages with kissy-face emojis, and sending group messages. Essenfeld linked the imposter Facebook and LinkedIn accounts to the victim’s prospective employer by following and engaging with the prospective employer’s social media accounts. He also linked the fake accounts to other aspects of the victim’s life by “liking” posts by her former co-workers, her university, the U.S. Navy, and fitness studios she previously attended.

Over 1,200 Facebook users ultimately became “friends” with the imposter account, including the victims’ former colleagues. The evidence showed that the victim reported the imposter account to Facebook more than 400 times, but Facebook refused to take down the account because it appeared more authentic than the victim’s actual account due to the volume of images and level of Essenfeld’s engagement on the platform.

Even after Essenfeld became aware of the investigation, and he was arrested and released on bond, he continued his cybercrime spree by creating new “fan club” pages on Wikipedia and WikiAlpha, and “fan club” accounts on Instagram, Facebook, and YouTube that presented as if they were operated by a “fan” of the victim. Essenfeld used these fan club accounts to continue to post images and content about the victim. Prior to trial, U.S. District Judge Robert Huie ordered that bond be revoked and Essenfeld be taken into custody based on the fan club accounts. At sentencing, Judge Huie found that Essenfeld should be held accountable for the fan club accounts and considered them as relevant conduct for Essenfeld’s sentencing.

“Mr. Essenfeld betrayed his oath to the Navy and has been held to account for his calculated and cruel campaign to stalk, harass, and intimidate his victim,” said Special Agent in Charge Nicholas Carter of the NCIS Southwest Field Office. “Cyberstalking is a felony-level crime that has no place within the ranks and we remain committed to exposing those who torment their victims online.”

This case is being prosecuted by Assistant U.S. Attorneys Sabrina Feve and Michael A. Deshong.

DEFENDANT                                               Case Number 23cr0177-RSH               

Theodore E. Essenfeld                                    Age: 53                                   Chula Vista, CA

SUMMARY OF CHARGES

Count 1:          Cyberstalking – Title 18, U.S.C., Section 2261A(2)(B)

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

Count 2:          Identity Theft – Title 18, U.S.C., Section 1028(a)(7)

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

INVESTIGATING AGENCY

Naval Criminal Investigative Service (NCIS)

SAN DIEGO – Former U.S. Customs and Border Protection Officer Leonard Darnell George was sentenced in federal court today to 23 years in prison for accepting bribes to allow unauthorized migrants and vehicles containing methamphetamine and other illicit drugs to pass through the border into the U.S.

“What’s important to remember about the story of Leonard George is that his corruption was discovered and defeated.” said U.S. Attorney Tara McGrath. “Our commitment to the integrity of the badge brought justice to a corrupt officer in this case who will spend decades behind bars.”

“Public corruption as in this case is the betrayal of trust that erodes the foundation of the very principals of law enforcement and undermines the public’s perception of those held to a higher standard,” said Shawn Gibson, special agent in charge for HSI San Diego. “Today’s sentencing is a result of HSI’s commitment to investigating transnational criminal organizations and holding all individuals that aid these criminals accountable for their actions. The success of this multiagency investigation is due to everyone’s commitment of honor and integrity.”

“Mr. George should have used his position of authority and trust to protect the United States; however, he used it for his own financial gain,” said FBI San Diego Special Agent in Charge Stacey Moy. “The entire law enforcement profession is tarnished when an officer betrays the oath to protect and serve. The FBI will always vigorously and relentlessly investigate anyone who violates that sacred oath.”

“CBP does not tolerate misconduct within its ranks,” said Special Agent in Charge Elizabeth Cervantes of CBP’s Office of Professional Responsibility, San Diego Field Office. “OPR’s efforts in this case and this latest court decision are a testament to CBP’s commitment to preserving the honor of its overwhelmingly professional workforce, and to its core values of Vigilance, Integrity, and Service to country.”

Department of Homeland Security Inspector General Joseph V. Cuffari, Ph.D., said, “Today’s sentencing sends a clear message that federal employees who violate the law will be held accountable. DHS Office of Inspector General is grateful for our continued partnership with our law enforcement partners as we fight corruption along the Southern Border.”

During the trial, several witnesses testified that George agreed to allow drug-laden vehicles to enter the U.S. through his lane in late 2021. George would notify members of a drug trafficking organization when he was at work, what lane he was on, and that they had one hour to reach his lane. However, in February 2022, after an alert placed by law enforcement agents on a suspected drug smuggling vehicle was flagged entering George’s Lane, George was forced to send the vehicle to secondary inspection, later revealing approximately 222 pounds of methamphetamine.

Undeterred, George allowed a second drug-laden vehicle affiliated with the drug trafficking organization and traveling directly behind the flagged vehicle to enter the U.S. with over 200 pounds of drugs. Text messages sent by George the following day reveal he received approximately $13,000 for the vehicle he allowed to enter the U.S. On the same day he received his bribe payment, George purchased a 2020 Cadillac CT5 for an associate of the drug trafficking organization as a gift. George delivered the Cadillac CT5 to the associate in Ensenada on Valentine’s Day.

Over the course of six months, George continued to allow vehicles containing undocumented individuals to enter the U.S. through his lane. George repeatedly omitted passengers and the true names of drivers coming through his lane, instead entering the names of others to conceal his criminal activities. Law enforcement agents and prosecutors identified approximately 19 crossings associated with the criminal organizations during the six-month time period. Text messages confirmed George agreed to allow vehicles through his lane for $17,000 per vehicle, $34,000 for two vehicles, $51,000 for three vehicles, or $65,000 for four vehicles. One text message confirmed that George received $68,000 after he allowed four vehicles from one organization to enter his lane in June 2022.

Testimony from a witness confirmed that George purchased vehicles, motorcycles, and jewelry with the proceeds of his illicit activities. Additionally, on George’s days off, he travelled to Tijuana to visit Hong Kong Gentlemen’s Club where he spent approximately $5,000 per trip. He would stand on the second level of the club and throw cash over the balcony to the dancers below, “showering” them with money. He would also buy bottles of alcohol, and occasionally gifts, for dancers.

The extent of George’s relationship with traffickers revealed itself when prosecutors admitted a photograph of one of George’s trafficking associates taking a selfie in George’s CBP uniform jacket.

The case was tried and prosecuted by Assistant U.S. Attorneys Bianca Calderon-Peñaloza, Brandon J. Kimura and Michael G. Wheat.

DEFENDANT                                Case Number 23CR1291

Leonard Darnell George                  Age: 42                          San Diego               

SUMMARY OF CHARGES                                   

Receiving Bribe by Public Official – Title 18, U.S.C., Section 201

Maximum penalty: Fifteen years in prison

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

Maximum penalty: Life in prison with a 10-year mandatory minimum

Bringing in Certain Aliens for Financial Gain – Title 18 U.S.C., Section 371, Title 8 U.S.C., Section 1324(a)(2)(B)(ii)

Maximum Penalty: Ten years in prison

Bringing in Certain Aliens for Financial Gain – Title 18 U.S.C., Section 371, Title 8 U.S.C., Section 1324(a)(2)(B)(ii)

Maximum Penalty: Ten years in prison

INVESTIGATING AGENCIES

Federal Bureau of Investigation (FBI)

Department of Homeland Security – Office of Inspector General (DHS OIG)

Homeland Security Investigations (HSI)

Customs and Border Protection – Office of Professional Responsibility (CBP OPR)

SAN DIEGO – Alberto Ubaldo Quintero-Rivas of Mexicali, Mexico, was sentenced in federal court today to 36 months in prison for smuggling unauthorized migrants into the United States in an event that lead to the death of one of the migrants.

According to his plea agreement, Quintero-Rivas brought two migrants into the United States near the Andrade Port of Entry – the easternmost border crossing on the California-Mexico border - on February 22, 2024. Quintero-Rivas guided the two migrants over the international boundary fence between the United States and Mexico, which stands at more than 30 feet tall in that area. While scaling the fence, one of the migrants, a 51-year-old man, fell. The migrant suffered a head injury and died from his injuries.

Border Patrol agents found Quintero-Rivas and the other migrant he had guided into the United States at a nearby RV park. An agent traveled to the nearby border wall to find out where the pair had entered the United States. It was there that the agent found the body of the deceased man and called for emergency medical services. EMS arrived on the scene and declared the man deceased.

Quintero-Rivas initially denied knowing the fallen man, but agents compared his shoeprints to prints found alongside the man’s body and discovered that they matched. The other migrant Quintero-Rivas smuggled told agents that she saw the man fall from the fence. She wanted to stay and help him, but Quintero-Rivas told her that he was in charge and instructed her to leave the fallen man and follow him.

“This tragic death serves as a haunting reminder that heartless smugglers would not – and in this case did not - hesitate to leave a man to die,” said U.S. Attorney Tara McGrath. “As we seek justice for those lost, we remind anyone contemplating a similar journey that smugglers consider human lives simply as a transaction. Don’t trust your life to a smuggler.”

“Illegally crossing the border into the United States is a dangerous business, and callous smugglers have no value for human life,” said Yuma Sector’s Acting Chief Patrol Agent Dustin W. Caudle. “We are glad to see Alberto Ubaldo Quintero-Rivas brought to justice for his role in the death of this migrant. We also hope this acts as a reminder that crossing the border at any point other than a port of entry can have deadly consequences. It is not worth the risk.”

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

DEFENDANT                                               Case Number 24cr0600-RBM                          

Alberto Ubaldo Quintero-Rivas                     Age: 37                       Mexicali, Mexico

SUMMARY OF CHARGES

Bringing In Aliens Resulting in Death – Title 8, U.S.C., Section 1324(a)(1)(A)(i) & (B)(iv)

Maximum penalty: Death or Life in Prison; $250,000 fine

INVESTIGATING AGENCIES

United States Border Patrol

SAN DIEGO – Chula Vista resident Paolo Roberto Flores pleaded guilty in federal court today, admitting he defrauded investors of more than $4 million through lies and deception. 

According to his plea agreement, Flores made false statements about the success of his prior investments and promised to do the same for new investors. He agreed to invest their funds in cryptocurrency and take 20 percent of any profitable trades. He also told potential investors that he had effective risk mitigation measures in place to limit potential losses.

Flores sent frequent text messages to investors, purporting to document profits resulting from his cryptocurrency trading. Based on Flores’ claim of consistent profits, some clients decided to increase their investments.

When his investments started declining consistently, Flores took multiple steps to conceal his losses from investors. He doctored account statements to falsely show profits that did not exist. For example, on July 8, 2022, Flores sent a screenshot to investors that purported to be an “Assets Overview” page from trading platform BYBIT. He had doctored the screenshot to show an overall asset amount of approximately 69.06515482 BTC (or approximately $1,502,431.64 based on the closing price of $21,753.83 for one BTC on July 8, 2022). In reality, the account had a nominal balance.

Later, when investors tried to withdraw funds as Flores had promised, Flores falsely claimed that BYBIT had frozen the account in which investor money had been deposited. He provided a series of apparent screenshots of emails, which he claimed were his communications with BYBIT. Instead, he had secretly created a new account, then initiated a user request through BYBIT to disable the login for the new account claiming, “suspicious account activity.” After BYBIT blocked the account as requested, FLORES logged into the new account to get the error message. He provided the error message, “This account has been banned,” to the investors to support his fraudulent claim that BYBIT had banned the account.

According to court documents, Flores obtained at least $4,781,248 from victim investors because of his false statements and fraudulent documentation. At least 15 people gave amounts from $50,000 to $1.6 million. Flores used the proceeds of his scheme to purchase a 2021 Tesla Model S and a 2022 Land Rover RR, which he boasted about on his Facebook page. 

“The U.S. Attorney’s Office is committed to pursuing those who commit fraud for personal gain,” said U.S. Attorney Tara McGrath. “If you believe you have been the victim of a scam or fraud scheme, contact law enforcement for help.”  

“Mr. Flores willingly preyed upon investors who trusted him with their money,” said FBI San Diego Special Agent in Charge Stacey Moy. “People should be able to confidently invest their hard-earned money in the way that they choose. If that confidence and trust are exploited by criminals aiming to commit fraud, investors should know that law enforcement will work tirelessly to bring to justice those responsible.”

In addition to the investment fraud, Flores admitted that he attempted to commit mortgage fraud. In July 2023, Flores executed an application to refinance a Veteran’s Administration mortgage with Rocket Mortgage LLC in the amount of $1,086,000 for his residence. In connection with the application, Flores made false statements about his employment status and income, and supported those false claims by submitting fabricated pay stubs to the mortgage lender.

Flores was ordered to appear for sentencing before U.S. District Judge Barry Ted Moskowitz on January 23, 2025, at 1:30 p.m.

If you believe you were a victim of this crime, you may contact the San Diego Field Office at (858) 320-1800, or the Victim Witness Unit of the United States Attorney’s Office at usacas-vw@usa.doj.gov.

This case is being prosecuted by Assistant U.S. Attorney Valerie H. Chu.

DEFENDANT                                   Case Number 24CR2216-BTM

Paolo Roberto Flores                          Age: 39                                   Chula Vista, CA

SUMMARY OF CHARGES

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

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

INVESTIGATING AGENCY

Federal Bureau of Investigation 

SAN DIEGO – The Department of Justice has an important role in deterring and combating discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud. The Department will address these violations wherever they occur. The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Assistant U.S. Attorney Seth Askins has been appointed to serve as District Election Officer for the Southern District of California, and in that capacity is responsible for overseeing the district’s handling of Election Day complaints regarding voting rights, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department headquarters in Washington, D.C.

“Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election,” said U.S. Attorney Tara McGrath. “Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence. The Department of Justice will always work tirelessly to protect the integrity of the election process.”

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice. The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).   

U.S. Attorney McGrath said: “The right to vote is the cornerstone of American democracy. We all must ensure that those who are entitled to vote can exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Askins will be on duty while the polls are open. He can be reached by the public at the following telephone number: (619) 546-6692.”

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (858) 320-1800.

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by complaint form at https://civilrights.justice.gov/ or by phone at 800-253-3931.

U.S. Attorney McGrath urged those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately, before contacting federal authorities. State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency. 

SAN DIEGO – Half-brothers Christopher Baltezar Hernandez and Victor Armondo Aguilar were sentenced in federal court today to six consecutive life terms and 45 years, respectively, for the premeditated execution of their sister, her three children – ages 9, 8 and 4 – and her significant other in their Tijuana home. The siblings had been involved in a bitter dispute over property prior to the murder.

“I cannot understand how one can point a gun in front of a child’s face and pull the trigger,” U.S. District Judge Linda Lopez told the defendants during the sentencing hearing. She described the murders as “horrific,” “completely incomprehensible,” and “cold, intentional, planned, calculated, and callous.”

Aguilar, of Tijuana, pleaded guilty in October 2023 and Hernandez, of Fresno, California, pleaded guilty in December 2023, each to a single count of conspiring to murder a U.S. citizen in a foreign country and five counts of stalking resulting in death. The half-brothers are U.S. citizens. The sister and her children were also U.S. citizens; the significant other was a Mexican national.

According to their plea agreements, on December 3, 2021, the day of the murders, Hernandez traveled from Fresno to Tijuana through San Diego, armed with an assault rifle, .223 caliber ammunition, and two revolver speed loaders. Hernandez met up with Aguilar in Tijuana, where they acquired a revolver.

The half-brothers, armed with the firearms and wearing dark clothes and gloves, went to the victims’ residence in Tijuana. According to the plea agreements, which identified the victims by their initials, the defendants first shot and killed the sister, J.H., and her eight-year-old daughter, A.M.M., in the kitchen. The significant other, G.M.V., was shot and killed in a bedroom while he attempted to shield the other two children. The bedroom door was forced open and nine-year-old A.M. and four-year-old S.M. were each shot in the head.

“Borders do not shield criminals from justice when Americans are victimized abroad,” said U.S. Attorney Tara McGrath. “These executioners were charged, convicted, and held to account in a U.S. court. The Department of Justice will continue to use every available tool to protect Americans from harm at home and abroad.”

“Jealousy and greed led to one family's devastating loss of five loved ones,” said FBI San Diego Special Agent in Charge Stacey Moy. “Hernandez’s and Aguilar’s well-deserved prison sentences reflect their total disregard for human life. While their imprisonment will never bring back these lives, we hope it offers some peace to the victims’ family. The FBI, alongside our local and international law enforcement partners, remains dedicated to seeking justice and will not hesitate to hold accountable those involved in violent crimes, whether in the United States or abroad.”

While there were likely multiple motivations for the murders, the primary reason was a dispute over the ownership of numerous properties in Mexico. According to court documents, in the months leading up to the murders, the sister retained an attorney to help in the property dispute, which prompted Hernandez to text her: “We already know about the lawyer.” Hernandez asked, “You think you can just fuck us over and nothing will happen?” Hernandez then mentioned J.H.’s attorney’s name and that he had the attorney “in are[sic] hands.” Hernandez continued to say, “Fuck you and all your family” and, “The truth is I’m not fucking around. You thought you were going to make a dumbass out of me but no. You’re not going to have anything.” Hernandez then challenged J.H. to “…try me and see how much you can handle because with me you’re not going to be able to finish it.”

Hernandez had a long history of threats against his sister and her children. In May 2019, J.H. called 911 stating Hernandez was threatening to shoot her and her kids in the head. Hernandez and J.H. had the same parents; Aguilar and J.H. were half-siblings. It’s unclear if J.H. and her significant other were married.

According to the plea agreements, the murders occurred after months of meticulous and obsessive planning and premeditation. Hernandez and Aguilar had researched the victims’ address and the surrounding area online more than 200 times. Hernandez also bought the parts and built a fully functional .223 caliber assault rifle. The week before, Hernandez researched “ar15 jam clearing” and “ar15 room clearing” and watched ten different videos related to tactical firearms training. Hernandez also researched how to build a hidden compartment in his Toyota Corolla and discussed contingency plans with others, among other preparatory steps. The day before the murders, Hernandez bought a pair of revolver speed loaders, and on the day of the murders, Hernandez and Aguilar acquired a revolver in Tijuana, Mexico.

Aguilar searched for and listened to a podcast related to homicide investigations just hours before the murders. Minutes before the murders, Hernandez removed the SIM card from his phone, and returned it about a half-hour after the murders.

Following the murders, Hernandez researched numerous news articles about the killings and searched, “does the fbi investigate murders.” Hernandez and Aguilar also deleted their location and messaging history.

This case is being prosecuted by Assistant U.S. Attorneys Mario Peia, Matthew Brehm and Fred Sheppard.

DEFENDANTS                                             Case Number 22cr778-LL                              

Christopher Baltezar Hernandez                    Age: 27                                   Fresno, CA

Victor Armondo Aguilar                                Age: 22                                   Tijuana, MX

SUMMARY OF CHARGES

Conspiracy to Murder – Title 18, U.S.C., Section 1117

Maximum penalty: Life in prison

Stalking Resulting in Death – Title 18, U.S.C., Section 2261A

Maximum penalty: Life in prison

INVESTIGATING AGENCIES

Federal Bureau of Investigation

San Diego County Sheriff’s Department

SAN DIEGO – The 22nd District Agricultural Association (DAA), which owns and operates the Del Mar Fairgrounds in San Diego County, and Carlene Moore, the chief executive officer of the 22nd DAA, have agreed to pay $5,664,015 to settle allegations that the 22nd DAA was not eligible for the $4,713,700 Paycheck Protection Program loan that it obtained.

The 22nd DAA is governed by a nine-member board, all appointed by the governor of California. The Del Mar Fairgrounds, under the ownership and operation of the 22nd DAA, hosts various public events, including the annual San Diego County Fair and thoroughbred horse racing.

Congress created the Paycheck Protection Program, or PPP, in March 2020, as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, to provide emergency financial support to eligible small businesses experiencing economic hardship caused by the COVID-19 pandemic. Although many small businesses were eligible for forgivable PPP loans, some businesses were not. Regulations provide that businesses ineligible for SBA loans include those considered “government-owned.” The United States contends that the 22nd DAA was government-owned and therefore not eligible to receive a PPP loan.   

In May 2020, the 22nd DAA obtained a PPP loan in the amount of $4,713,700 based on an application that Carlene Moore, then Deputy General Manager of the 22nd DAA, signed and certified for accuracy of eligibility. The loan was subsequently forgiven based on another application that Ms. Moore also signed and certified for accuracy. The 22nd DAA’s loan and forgiveness of the loan resulted in the United States paying $4,713,700 in loan principal plus $97,890 in fees and interest to the bank that processed the loan.

“These loans were intended to provide critical relief to eligible businesses during a time of global crisis,” said U.S. Attorney Tara McGrath. “This settlement upholds the integrity of the COVID-relief program and holds the DAA accountable for obtaining millions in taxpayer-funded benefits to which they were not entitled.”

SBA’s General Counsel Therese Meers stated, “The favorable settlement in this case is the product of enhanced efforts by federal agencies such as the Small Business Administration working with the U.S. Attorney’s Office and the SBA’s Office of Inspector General to pursue recovery from those who obtained essential government program funds they weren’t eligible for.”

This matter was handled by Assistant U.S. Attorney Joseph P. Price Jr.

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

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

SAN DIEGO – Escondido resident Katherine Lu Acquista, the former director of operations and accounting for the San Diego Regional Economic Development Corporation, was sentenced in federal court today to 12 months and 1 day in custody for stealing approximately $433,275.89 from her then-employer.  She was also ordered to pay a fine of $50,000.

According to court documents, while employed at the non-profit organization known as EDC, Acquista used her access and authority to put personal expenses on EDC credit cards and pay those expenses using EDC funds. She also directed other employees to issue checks to her from the EDC company bank account. She then caused false entries about these transactions to be made in the EDC’s accounting system to disguise her ongoing theft. In addition, she stole from EDC’s flexible spending and payroll system. All told, she exploited her position of trust to steal more than $430,000 over at least a five-year period, between August 2017 and August 2022.

The EDC is a 501(c)(3) charitable non-profit organization that works to grow San Diego’s economy and regional prosperity. The EDC’s mission is to maximize the region's economic competitiveness and global competitiveness.  It is funded by individual and corporate donations, grants and investments from nearly 200 companies, public agencies, and private organizations.

Explaining the impact of her crimes, the Chief Operating Officer of EDC stated, “[San Diego Regional Economic Development Corporation] is a nonprofit organization with a mission to maximize the region's economic prosperity and raise our global competitiveness. Acquista’sactions defied two of our closely held values – accountability and integrity.”

“Members of our community who donate to local non-profits depend on the integrity and stewardship of those entrusted with such funds,” said U.S. Attorney Tara McGrath. “This sentence serves to remind those engaged in crime for profit that whether your victim is the taxpayer, government, or a local non-profit, you will be held accountable.”

“Those who seek to misappropriate non-profit donations are acting contrary to the interest of the public good. The FBI stands ready to investigate those who violate the trust of the donors and diminish the efforts of non-profit organizations such as the San Diego Regional Economic Development Corporation,” said San Diego FBI Special Agent in Charge Stacey Moy.

This case is being prosecuted by Assistant U.S. Attorney Valerie H. Chu. Former Assistant U.S. Attorney Michelle Wasserman assisted in the case.

DEFENDANT                                               Case Number 24CR0765-AJB

Katherine Lu Acquista                                    Age: 47                                   Escondido, CA

SUMMARY OF CHARGES

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

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

INVESTIGATING AGENCY

Federal Bureau of Investigation 

SAN DIEGO – Eric Jin of San Diego pleaded guilty in federal court today, admitting that he persuaded a 14-year-old girl to send him sexually explicit photographs of herself, including an image of her leg where she had carved the defendant’s name into her skin with a knife at his direction.

Jin was indicted on May 15, 2024. He pleaded guilty to Sexual Exploitation of a Minor in connection with his online communications with the girl. For example, according to his plea agreement, Jin demanded that she take sexually graphic pictures of herself without clothing in December 2022 and again in February 2023. The girl did as Jin directed and sent him the photos. It was on the February date that he ordered her to carve his first name into her skin and send him a photo.

Jin also admitted to sending the victim images of other minors engaged in sexually explicit conduct.

“This defendant repeatedly victimized, exploited, and literally scarred a child,” said U.S. Attorney Tara McGrath. “This horrific crime serves as a reminder to keep a very close eye on who kids are talking to online.”

“While all crimes we investigate are deplorable, the sexual exploitation of children is an especially flagitious violation,” said FBI San Diego Acting Special Agent in Charge Houtan Moshrefi. “Let Eric Jin’s guilty plea be a clear message that the FBI and its partners will aggressively pursue people who intend to exploit children in such a despicable manner.”

This case is being prosecuted by Assistant U.S. Attorneys Andrew Sherwood and Katie Grammenidis.

The defendant is scheduled to be sentenced on January 24, 2025.

DEFENDANT                                   Case Number 24cr1071-JO                                    

Eric Jin                                                Age: 30                                   San Diego, CA

SUMMARY OF CHARGES

Sexual Exploitation of a Minor – Title 18, U.S.C., Section 2251(a) and (e)

Maximum penalty: Thirty years in prison, with a mandatory minimum of 15 years in prison and a $500,000 fine

INVESTIGATING AGENCY

Federal Bureau of Investigation

SAN DIEGO – Dr. Janette J. Gray of San Diego and her former medical practice, The Center for Health & Wellbeing in San Diego, have agreed to pay $3.8 million to settle allegations that they violated the False Claims Act by knowingly submitting false claims to the Medicare and TRICARE programs.

Dr. Gray and The Center claimed to operate an “alternative,” “integrative,” and “holistic” clinic, which was staffed by medical doctors, nurse practitioners, naturopathic doctors, chiropractors, acupuncturists, and mental health professionals, along with ancillary medical and administrative staff. Dr. Gray and The Center promoted IV infusion therapy, hormone/supplement therapy, and a variety of other alternative treatments.

The settlement resolves allegations that from 2012 to 2022, Dr. Gray and her practice billed Medicare and TRICARE for services that were not covered under either program by disguising the rendering provider, misrepresenting the services provided, “unbundling” services (by billing for a procedure or service in separate parts instead of a single code), or billing for services not medically necessary. In addition to paying $3.8 million to resolve the allegations, Dr. Gray will now be excluded from participating in Medicare, Medicaid, and all other Federal health care programs for five years.

“There’s no price tag on the integrity of our healthcare system,” said U.S. Attorney Tara McGrath. “When a doctor engages in billing fraud, we will protect patients and taxpayers from deceit.”

“The civil settlement holds Dr. Gray and her former medical practice accountable for questionable actions that circumvented the TRICARE billing guidelines and allowed them to receive payments for services that should not have been reimbursed by TRICARE, costing American taxpayers millions of dollars,” said Bryan D. Denny, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office.  “DCIS and its partners will always aggressively investigate those who defraud TRICARE, because those deceptive actions ultimately harm those defending our country and their families.”

“This investigation is proof that the FBI and its law enforcement partners remain committed to investigating and bringing to justice anyone who tries to violate the American health care system,” said FBI San Diego Acting Special Agent in Charge Houtan Moshrefi.

The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Southern District of California; the United States Department of Health and Human Services, Office of Inspector General; DCIS; and the FBI. This matter was handled by Assistant U.S. Attorney Maritsa A. Flaherty.

The resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

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

SAN DIEGO – Felipe de Jesus Rosales-Herrera of Riverside was sentenced in federal court today to 120 months in prison for leading an extensive migrant smuggling ring responsible for illegally transporting more than 100 migrants and causing one death.

According to his plea agreement, Rosales-Herrera employed foot guides to lead migrants over the border and drivers to pick them up on the U.S. side and deliver them to a stash house to meet a sponsor. Rosales-Herrera admitted that he charged approximately $10,000 per migrant. According to court documents, some of the smuggling events in the conspiracy resulted in high-speed chases and crashes, which placed the migrants, drivers, law enforcement and members of the public at risk. This culminated in a tragic collision on December 25, 2021.

Rosales admitted in his plea agreement that, even after learning his driver killed someone, he and his co-conspirators continued the conspiracy. As co-defendant John Douglas Oglesby III admitted in his plea agreement, drivers were told to flee if Border Patrol attempted to pull them over. Unfortunately, many drivers did just that, resulting in numerous high-speed chases and several crashes.

During the Christmas Day event in 2021, Kevin Antonio Quevedo-Moncada, acting under the supervision of co-defendant (and Rosales’ subordinate in the smuggling ring) Jose Luis Alejo-Cruz, picked up three undocumented migrants in a remote area. When Border Patrol attempted to pull him over, Quevedo-Moncada fled into a nearby campground, swerving wildly and careening around a field at high speed before ramming a Border Patrol vehicle to escape. As agents pursued him, he sped away on wet, winding roads, reaching speeds of close to 100 mph. Quevedo-Moncada lost control of his car and struck a tree, killing one of the migrants and leaving the other two in critical condition. Quevedo-Moncada pleaded guilty to charges related to this incident. Alejo-Cruz discussed the smuggling event with Rosales before the crash. Shortly after the crash, Rosales sent Alejo-Cruz a news article about the accident and confirmed that it was their driver.

Alejo-Cruz also relied on intimidation to preserve his position, tracking down and robbing two of his former drivers at gunpoint when he felt they had wronged him and plotting to kidnap a rival migrant smuggler.

“You traded in human life, trafficked in people… to line your own pockets” U.S. District Judge Cathy Ann Bencivengo told the defendant at todays hearing. “The worst-case scenario in alien smuggling, where someone died, did not deter you.” Judge Bencivengo ultimately ruled that the appropriate sentence was “fully and fairly the statutory maximum.”

“These smugglers viewed migrants as dollar signs, not people,” said U.S. Attorney Tara McGrath. “This significant sentence demonstrates the importance of protecting the public from the reckless tactics of criminal networks.”

“This event highlights the danger that these criminal organizations pose to the migrants they are transporting as well as the general public.” said U.S. Border Patrol, San Diego Sector Chief Patrol Agent Patrica McGurk-Daniel. “This outcome is the result of a concerted effort by Border Patrol agents and the U.S. Attorney’s Office to dismantle human smuggling networks and bring those responsible to justice.  The sentencing today sends a clear message; if you smuggle people across our borders, you will face serious consequences.”

Co-defendants Alejo-Cruz and Oglesby were previously sentenced to 120 months and 70 months in federal prison, respectively. The final defendant, Miguel Isaac Villa-Gomez, is scheduled to be sentenced on December 6, 2024.

This case is being prosecuted by Assistant U.S. Attorney Paul Benjamin.

DEFENDANTS                                             Case Number 23-CR-871-CAB

Felipe de Jesus Rosales-Herrera                     Age: 38                                   Riverside County, CA

Jose Luis Alejo-Cruz                                      Age: 23                                   Long Beach, CA

John Douglas Oglesby III                               Age: 20                                   Chesapeake, VA

Miguel Isaac Villa-Gomez                             Age: 27                                   Downey, CA

Case Number 22-CR-1995-B__

John Douglas Oglesby III                               Age: 20                                   Chesapeake, VA

SUMMARY OF CHARGES

Conspiracy to Transport Aliens – Title 8, U.S.C., Section 1324

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

INVESTIGATING AGENCY

United States Border Patrol

SAN DIEGO – United States Attorney Tara McGrath issued a public safety alert today advising the public to be vigilant to hurricane relief fraud in the wake of powerful hurricanes causing devastation on the East Coast.

“During times of crisis, be vigilant, because not all who ask for help have good intentions,” McGrath said. “Be sure to protect yourself by verifying before you donate to ensure your generous support reaches those truly in need.”

Hurricane Milton is heading for Florida now, less than a week after Hurricane Helene made landfall in Florida’s Big Bend Region on Sept. 26 and quickly caused major devastation there and across states including Georgia, South Carolina, North Carolina, Tennessee, and others. As we have seen in the wake of previous national disasters, fraudsters will target victims of the storm along with citizens across the country who want to do what they can to assist individuals affected by the storm. Unfortunately, criminals exploit disasters for their own gain by sending fraudulent communications through email or social media and by creating deceiving websites designed to solicit contributions.

The public should exercise diligence before giving contributions to anyone soliciting donations or individuals offering to assist those affected by Hurricane Helene. Solicitations can originate from phone calls, texts, social media, e-mail, door-to-door collections, flyers, mailings, and other similar methods. Before making a donation to benefit victims of Hurricane Helene, individuals should adhere to certain guidelines, including:

• Make contributions directly to known organizations rather than relying on others to make the donation on your behalf.
• Do not be pressured into making contributions as reputable charities do not use such tactics.
• Do not respond to any unsolicited communications (e.g., e-mails and texts), and never click links contained within those messages because they may be targeting your personal information, to include bank and credit card account information, and other identifiers such as dates of birth and social security numbers.
• Rather than clicking on a purported link to a charity, verify its legitimacy by utilizing various Internet-based resources that may assist in confirming whether the organization is a valid charity.
• Beware of organizations with copy-cat names similar to, but not exactly the same as, those of reputable charities.
• Avoid cash donations if possible. Pay by credit card or write a check directly to the charity. Do not make checks payable to individuals.
• Know that legitimate charities do not normally solicit donations via money transfer services, and their website will normally end in .org rather than .com.
• Be cautious of e-mails that claim to show pictures of the disaster areas in attached files because the files may contain viruses. Only open attachments from known senders.

The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina to deter, investigate, and prosecute fraud in the wake of disasters. More than 50 federal, state, and local agencies participate in the NCDF, which reminds the public to be aware of and report any instances of alleged fraudulent activity related to relief operations and funding for victims. Complaints of fraud may be reported online at www.justice.gov/DisasterComplaintForm. Complaints may also be reported to the NCDF at (866) 720-5721, a hotline that is staffed 24 hours a day, 7 days a week.

SAN DIEGO –Troy Othneil Smith, a passenger aboard a small aircraft that made an emergency landing on Highway 76 in Oceanside last month, appeared in federal court today to face drug charges stemming from the incident.

According to a complaint, after the plane landed safely, Smith attempted to hide a package of cocaine from Oceanside police officers who responded to the emergency landing that occurred at about 1:39 a.m. on September 26, 2024.

According to the complaint, Smith was under investigation by the DEA and the U.S. Postal Service prior to the emergency landing. In that ongoing probe, Smith is suspected of shipping narcotics from Oceanside, California, across the United States through the United States Postal Service.

Flight records indicate the private plane departed from a San Diego airport at approximately 10:49 a.m. on September 25, 2024, and landed at about 6:48 p.m. that evening in Mesa, Arizona. At approximately 11:08 p.m. on September 25, 2024, the airplane departed Mesa, Arizona and headed westward toward California. At approximately 1:28 a.m., the airplane flew past Carlsbad over the Pacific Ocean, and made a U-turn heading back toward Oceanside. At approximately 1:39 a.m., the airplane made an emergency landing on Highway 76.

Based upon information gathered during the investigation, law enforcement learned that the pilot and passenger, later identified as Smith, began experiencing mechanical issues with the airplane during the flight as it arrived in San Diego County airspace. The pilot and passenger were planning an ocean landing because the airplane seemed to shut-off and was malfunctioning. They were able to turn the airplane around over the ocean as the airplane and engine began working again. After a short time, the engine shut off a second time, which resulted in the pilot landing the plane on Highway 76.

The Oceanside Police Department immediately responded to the scene on Highway 76 and found the pilot and passenger near the airplane. The passenger identified himself to police officers as Smith. One of the officers on scene noticed Smith was wearing a backpack and was pacing near the plane. After ordering Smith to stop going back to the airplane, the officer turned his attention away from Smith. When he heard the unzipping of a backpack, the officer immediately turned his attention back toward Smith, who was near the guardrail on the highway. The officer observed Smith reach into the backpack, take something out, and place it in the bushes. The officer ordered Smith to step away from the guardrail, while another officer went over to the guardrail and found a heat-sealed, air-tight package resting on the ground among the bushes. The contents of the package tested positive for cocaine. Smith was arrested.

Smith’s preliminary hearing and arraignment are scheduled to take place on October 31, 2024, at 1:30 p.m.

DEFENDANT                                               Case Number 24-MJ-03788                                     

Troy Othneil Smith                              Age: 36                       Oceanside, CA

SUMMARY OF CHARGES

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

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

INVESTIGATING AGENCIES

Drug Enforcement Administration

United States Postal Inspectors

San Diego Field Division Narcotics Task Force Team 6

North County Narcotics task Force

Oceanside Police Department

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

NEWS RELEASE SUMMARY – September 18, 2024

SAN DIEGO – A federal jury convicted San Diego restaurant owner Leronce Suel of wire fraud, conspiracy, and tax crimes for providing bogus information in applications for COVID relief programs and failing to report more than $1.7 million in revenue to the IRS.

According to court documents and evidence presented at trial, 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.

The jury found that 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 loans and Restaurant Revitalization Fund 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, 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.

Suel failed to report income he received from his business, including millions of dollars in cash and personal expenses paid for by the businesses. In 2023, Suel also filed original and amended tax returns for prior years that included false depreciable assets and business losses.

“Shirking taxes, lying to the IRS, and stealing COVID relief funds - these are not victimless crimes,” said U.S. Attorney Tara McGrath. “This jury saw through greed and deceit to ensure protection of federal programs designed to support our infrastructure and serve those in need.”

“For more than a decade, Mr. Suel evaded his tax responsibilities both as an individual and as a business owner,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office.  “Even worse than evading his tax obligations, during the COVID pandemic, Mr. Suel fraudulently obtained grants and loans intended to help businesses struggling in the wake of the pandemic and used those funds for personal gain.  Paying your fair share is central to our democracy, and IRS Criminal Investigation will continue to pursue those who evade their financial responsibilities to their fellow Americans.”

After conviction, Suel stipulated to forfeit $1,466,918 from the $2.4 million seized as proceeds traceable to his pandemic relief fraud.

Suel is scheduled to be sentenced on December 13, 2024.

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.

DEFENDANT                                   Case Number 23-cr-00965                                      

Leronce Suel                                       Age: 46                                   San Diego, CA

SUMMARY OF CHARGES

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

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

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

Maximum Penalty: Thirty years in prison and $1 million 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

IRS Criminal Investigations

SAN DIEGO – Cambridge International Systems, Inc., a defense contractor headquartered in Arlington, Virginia, was sentenced in federal court today to pay a criminal fine of $2,250,000 after admitting that it participated in a scheme to bribe a public official at Naval Information Warfare Center in exchange for winning and maintaining hundreds of millions of dollars in government contracts.  

According to Cambridge’s April 2024 plea agreement, the company – acting through its former Executive Vice President Russell Thurston and an unnamed employee – gave various things of value to former Naval Information Warfare Center employee James Soriano, including jobs for Soriano’s family and friends, meals, and a ticket to the 2018 MLB All Star Game held at Nationals Park in Washington, D.C.

In return, Soriano, acting in his position as a contracting officer’s representative at the Naval Information Warfare Center, ensured that Cambridge was awarded two large task orders. Soriano further ensured Cambridge was able to capture a steady stream of government funds by approving various additional projects on the task orders, including more than 70 projects on one of the task orders.

As a result of the conspiracy, the government obligated more than $32 million on one of the task orders and more than $100 million on the other. Although $132 million was obligated, only $1,672,102.23 had been paid out by the government at the time the fraud was uncovered.

Since pleading guilty, Cambridge was ordered to forfeit $1,672,102.23. The fine imposed today further penalizes the company for its criminal scheme, while acknowledging its diminished financial condition as a result of its guilty plea. The company was also placed on a two-year period of probation, during which time it will be closely monitored. As a condition of probation, the company is also setting up a fund to benefit the family of a slain employee.

“With a fine of over $2 million, the court sent a message to government contractors,” said U.S. Attorney Tara McGrath. “Cheating the system doesn’t pay out in the end.”

“Cambridge International Systems’ sentencing brings closure to its part in an illicit scheme to enrich the company and others with the assistance of corrupt government officials,” said Bryan D. Denny, Special Agent in Charge of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Western Field Office. “This outcome, and others associated with this investigation and prosecution, should serve as a warning to those who would subvert the proper government acquisition process for their own personal gain at the expense of the American taxpayer and our nation’s warfighters.”

“The sentencing of Cambridge International Systems, Inc. should serve as an example and a warning to other companies seeking defense contracts that corrupting the acquisition process will not be tolerated,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “The culture of complicity demonstrated by Cambridge International is just as detrimental to national security as actively handing over bribes, and IRS CI remains committed to working with our law enforcement partners to protect our warfighters from such corruption.”

“Cambridge deserves to be held accountable for perpetuating an illegal bribery scheme that undermined the fairness of the defense procurement process,” said Special Agent in Charge Greg Gross of the NCIS Economic Crimes Field Office. “NCIS appreciates our investigative partners for their continued efforts to protect our nation's warfighters from the threats posed by such corruption.”

Thurston is separately charged with conspiracy to commit bribery and bribery in case number 24CR341-TWR; a motion hearing is scheduled for April 11, 2025. Soriano pleaded guilty to conspiracy to commit bribery and bribery in case numbers 23CR2282-TWR and 24CR341-TWR; his sentencing is scheduled for May 9, 2025.

DEFENDANT                                                           Case Number 24-cr-759-TWR

Cambridge International Systems, Inc.                                  Arlington, VA

SUMMARY OF CHARGES

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

Maximum penalties: Five years corporate probation; a maximum $500,000 fine or twice the gross gain or loss resulting from the offense, whichever is greatest

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 – Michael Hart of San Diego pleaded guilty in federal court today, admitting he conspired to illegally import potent greenhouse gases known as hydrofluorocarbons (HFCs) into the United States from Mexico and sell them for a profit in violation of regulations intended to slow climate change. In addition to greenhouse gases, Hart admitted to conspiring to illegally import hydrochlorofluorocarbons (HCFCs), namely HCFC 22, an ozone-depleting substance banned under the Clean Air Act.

HFCs are used in applications such as refrigeration, air-conditioning, building insulation, fire extinguishing systems, and aerosols. The global warming impact of an HFC can be hundreds to thousands of times greater than carbon dioxide. Because of this, there has been an international phasedown of HFCs by 85 percent, resulting in an increase in the illegal smuggling and importation of HFCs.

This case is the first prosecution in the United States under the American Innovation and Manufacturing Act of 2020 (AIM Act). The AIM Act prohibits importing HFCs without allowances issued by the Environmental Protection Agency (EPA), and also prohibits selling, distributing, or offering for sale or distribution HFCs imported without allowances issued by the EPA.  

“Congress made it illegal to import certain refrigerants into the United States without allowances because of their documented and significantly greater contribution to climate change,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The Justice Department is committed to enforcing the AIM Act and other laws that seek to prevent environmental harm.”

As set forth in court documents, from about June to December 2022, Hart offered HFCs and HCFCs for sale via OfferUp, Facebook Marketplace and other internet sites. He then communicated with conspirators in the United States, who placed purchase orders for the refrigerants with Hart. Once the orders were placed, Hart purchased the refrigerants in Mexico with the help of his conspirators and illegally imported them into the United States concealed in his vehicle. Thereafter, Hart illegally sold the refrigerants to others in the United States, profiting from the black market for such refrigerants in the United States.

“Clean air is not for sale to the highest bidder,” said U.S. Attorney Tara McGrath. “The Department of Justice will use every tool at our disposal to protect air quality and hold criminal polluters accountable.”

“During Climate Week, the United States recognizes the urgent need to limit climate super pollutants like HFCs to help address the existential threat of climate change," said David M. Uhlmann, EPA Assistant Administrator of the Office of Enforcement and Compliance Assurance. "Today's guilty plea for the first-ever HFC arrest demonstrates EPA's commitment to vigorously enforcing our laws at all U.S. borders and ports to prevent illegal HFC canisters from entering the U.S."

Hart is scheduled to be sentenced December 9, 2024 at 9:00 a.m. before U.S. District Judge Marilyn Huff.

This case is being prosecuted by Assistant U.S. Attorney Mark W. Pletcher and Department of Justice Environmental Crimes Section Senior Trial Attorney Stephen DaPonte.

DEFENDANTS                                            Case Number 24-CR-0383-H                                             

Michael Hart                                                   Age: 58                                   San Diego, CA

SUMMARY OF CHARGES

Conspiracy to Violate the Clean Air Act Regulations (Title 42, U.S.C., Secs. 7671, 7413) and the American Innovation and Manufacturing Act Regulations (Title 42, U.S.C., Secs. 7675, 7413) – Title 18, U.S.C., Sec. 371

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

INVESTIGATING AGENCIES

U.S. Environmental Protection Agency, Criminal Investigation Division

Homeland Security Investigations

NEWS RELEASE SUMMARY – September 16, 2024

SAN DIEGO – Troy Shelvin Cannon of Las Vegas was sentenced in federal court today to 188 months in prison for sex trafficking by fraud, force, or coercion. Cannon was convicted by a federal jury after a three-day trial in April.

The jury found that Cannon was sex trafficking an adult female victim and taking the money she earned from engaging in commercial sex acts to use for his own personal profit. Over many months, Cannon coerced the victim to continually engage in prostitution. For example, Cannon texted the victim messages that stated, in part:

• “And ima choke you so hard”
• “You making this ass whooping worse”
• “Bitch make some trap”
• “Hoe I got accolades and receipts and videos bout my pimping”

On December 20, 2023, Cannon followed through on his prior threats, violently assaulting the victim by strangling her and punching her face. Cannon left his victim with multiple serious injuries, which caused, in part, significant swelling to her forehead, bruising on her arms, and abrasions throughout her body.

According to evidence presented at trial, this was not Cannon’s first foray into “pimping.” For example, in 2021, Cannon was arrested for pandering in Las Vegas after he tried to traffic a detective who was undercover as a prostitute.   

“Cannon used violence and intimidation to exploit a human being for profit,” said U.S. Attorney Tara McGrath. “The court imposed a sentence today holding him accountable, and sending a message that this kind of crime for greed will not be tolerated in San Diego.”  

“HSI is committed to protecting the vulnerable and keeping our communities safe,” said Christopher Davis, acting special agent in charge for HSI San Diego. “Every time HSI and our law enforcement partners are successful at apprehending violent predators, we deliver a strong message - exploitation will not be tolerated, and those who prey on the weak will face the full weight of the law.”

This case is being prosecuted by Assistant U.S. Attorney Derek Ko, Katie Grammenidis and Lyndzie Carter.

DEFENDANT                                   Case Number                         24cr0135-BAS                                  

Troy Shelvin Cannon                          Age: 30                                   Las Vegas, Nevada

SUMMARY OF CHARGES

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

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

INVESTIGATING AGENCIES

Homeland Security Investigations

San Diego Human Trafficking Task Force

NEWS RELEASE SUMMARY – September 16, 2024

SAN DIEGO – Christian Ferrari of El Cajon was sentenced in federal court today to 37 months in prison following his admission that he sold 22 “ghost guns” to undercover agents without a license. At the time of the sales, Ferrari was an active-duty U.S. Marine stationed at Camp Pendleton.      

Privately made firearms, commonly referred to as ghost guns, are made by individuals, like Ferrari, who buy parts and then use various specialized tools to construct and assemble the parts into a functional firearm. Unlike firearms made by licensed firearm manufacturers, ghost guns do not have a serial number, making them virtually untraceable. 

Ferrari’s arrest was part of the Privately Made Firearm Crime Reduction Project, which ran from February to May of 2023. The Project was initiated to address gun violence and the proliferation of ghost guns in San Diego. Using data analytics to identify trends in areas with heightened gun violence and the recovery of guns used in crimes, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the San Diego Police Department (SDPD) employed an intelligence-led policing effort to place resources where they would have the greatest impact. The Project resulted in the seizure of 165 ghost guns and the prosecution of 33 people, including Ferrari.

Between March 13 and May 9, 2023, Ferrari sold 22 ghost guns to ATF agents in exchange for $23,000 over four separate transactions. During one of the transactions, undercover agents told Ferrari those guns were going to be taken to Mexico. Ferrari responded, “alright, perfect,” and agreed to sell the agents 10 more ghost guns for $10,000. After the final transaction was completed, Ferrari was arrested. Pictured below are the 22 ghost guns Ferrari manufactured and sold to undercover ATF agents:

Following Ferrari’s arrest, agents discovered evidence that Ferrari was manufacturing firearms at a family member’s residence in Lakeside, California. Agents later found a drill press covered in metal shavings consistent with material used to manufacture of firearms.

A forensic analysis of Ferrari’s phone revealed numerous other conversations related to manufacturing and selling firearms and parts, which included AR-15 style rifles, silencers for firearms, and “full auto sears,” which convert AR-15s to fire automatically.

U.S. District Judge Cynthia A. Bashant told the defendant at today’s hearing: “What you did was an enormous danger to the public.” 

“By design, ghost guns are made to avoid regulation and slip past law enforcement,” said U.S. Attorney Tara McGrath. “But with intelligence-based efforts like the program used to take these 22 illegal weapons off the street we are prioritizing public safety.” 

“Dealing firearms without a license oftentimes results in individuals who are prohibited from owning firearms — such as felons, domestic abusers, or individuals with certain mental health conditions — to bypass background checks and obtain weapons,” said Christopher Bombardiere, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge of Los Angeles Field Division. “These firearms end up in the hands of criminals and are used in violent crimes, including homicides, robberies, and gang-related activities. ATF will continue to work with local and state law enforcement agencies to investigate the criminal possession and other criminal misuse of privately made firearms in the same manner as any other federal firearm offense.”

This case is being prosecuted by Assistant U.S. Attorney Shital H. Thakkar.

DEFENDANTS                                             Case Number: 23-cr-01091-BAS                            

Christian Ferrari                                             Age: 23                                   El Cajon, CA

SUMMARY OF CHARGES

Dealing in Firearms Without a License – Title 18, U.S.C., Section 922(a)(1)(A)

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

INVESTIGATING AGENCIES

Bureau of Alcohol, Tobacco, Firearms and Explosives

San Diego Police Department

NEWS RELEASE SUMMARY – Sept 13, 2024

SAN DIEGO – Clifford Stokes Jr. of Tempe, Arizona, was sentenced in federal court today to 10 years in prison for transporting a 19-year-old woman and two 16-year-old girls from Arizona to San Diego in January 2023 to engage in prostitution. One of the minor victims was reported as a missing juvenile from Arizona at the time Stokes drove her and the other two victims to an area in San Diego known for street-based commercial sex trafficking.

On January 17, 2023, San Diego Human Trafficking Task Force officers were conducting an operation in a high-prostitution area to recover sex trafficking victims when they observed Stokes driving his vehicle with out-of-state plates into the area and letting two of the victims out of the car. Officers observed as the victims began walking the street and waving at vehicles. When Stokes returned to the area in his vehicle to pick up the two victims, task force officers initiated a traffic stop. Stokes, the driver of the vehicle, was found to be in possession of a loaded firearm, and the three victims were passengers.

The adult victim told investigators that Stokes used violence and threats of violence to require her to earn $1,000 a day in commercial sex acts for his financial benefit. Officers were able to quickly identify the juvenile victims and contact Child Welfare Services, helping to reunite the victims with their families back home to Arizona.

“Today’s sentence underscores the gravity of human trafficking crimes,” said U.S. Attorney Tara McGrath. “The road to recovery for these young girls will be long and painful, but they will walk free from fear and brutality years before this defendant is released from prison.”

“This sentencing sends a clear message to potential offenders that they will be held accountable for their criminal behavior and the exploitation of the youth in California will not be tolerated,” said Attorney General Bonta. “I’m extremely grateful to our San Diego Human Trafficking Task Force, local law enforcement and our federal partners for their dedication and commitment to keeping our communities safe. My office always stands ready to work with our partners across California to fight for public safety.”

“Predatory behavior will not be tolerated by HSI,” said Christopher Davis, acting special agent in charge for HSI San Diego. “This investigation demonstrates HSI’s unwavering commitment to protecting the victims of these crimes and bringing these predators to justice.”

If you are living or working under threat of violence or extortion, or you suspect someone else may be, call the National Human Trafficking Resource Center toll free, 24/7 Hotline: CALL: (888) 373-7888 or TEXT BeFree or 233733.

This case was prosecuted by Assistant U.S. Attorney Derek Ko and Lyndzie M. Carter.

DEFENDANTS                                             Case Number 23-cr-00258-TWR              

Clifford Stokes Jr.                                           Age: 23                                   Tempe, AZ

SUMMARY OF CHARGES

Transportation for Purpose of Prostitution – Title 18, U.S.C., Section 2421(a)

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

INVESTIGATING AGENCIES

San Diego Human Trafficking Task Force

San Diego Police Department

San Diego Sheriff’s Office

California Highway Patrol

NEWS RELEASE SUMMARY – September 12, 2024

SAN DIEGO – Marcus Ray Chavez of Bonita pleaded guilty in federal court today, admitting that he provided fentanyl pills to a 15-year-old girl in exchange for sex, and that the fentanyl ultimately resulted in her death.

On at least four occasions between September and November 2022, Chavez provided the girl with two “M30” pills he knew were counterfeit pharmaceutical pills that contained fentanyl. Chavez also admitted to knowing the girl was underage. On November 12, 2022, the girl fatally overdosed from pills that Chavez provided.

As a result of his guilty plea, Chavez will be sentenced to no less than 20 years in custody, the statutory mandatory-minimum penalty for distributing fentanyl resulting in death.

“This heartbreaking case brings home the devastation caused by fentanyl,” said U.S. Attorney Tara McGrath. “For his role as the dealer in this tragedy, the defendant will spend at least the next 20 years of his life in prison.

“Fentanyl continues to devastate lives and families across the country,” said DEA Special Agent in Charge Brian Clark. “The defendant preyed upon this young girl and stole her life. The DEA and its partners continue to vigorously pursue those who deal fentanyl and bring them to justice.”

“Our hearts are with the family and loved ones of those impacted by this case,” said San Diego Police Chief Scott Wahl. “Justice has been served for this young victim, whose life was cut tragically short. SDPD will continue to pursue every available avenue to hold fentanyl dealers accountable for these kinds of crimes.”

This case is being prosecuted by Assistant U.S. Attorneys Owen Roth and Katherine E.A. McGrath.

Special Agents and Task Force Officers with the Drug Enforcement Administration’s Overdose Response Team (formerly known as Team 10) led the investigation, with support from the San Diego Police Department. This case is the result of ongoing efforts 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.

DEFENDANT                                               Case Number 23cr1354-JES                            

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

NEWS RELEASE SUMMARY – September 9, 2024

SAN DIEGO – Juan Pablo Prada Bernal of Colombia was sentenced in federal court today to 40 months in prison for participating in an international money laundering conspiracy involving more than $3 million in proceeds obtained through phone scams.

At today’s hearing, U.S. District Court Judge Andrew G. Schopler also ordered Bernal to pay $327,040.72 in restitution to 27 victims of the offense.

According to his plea agreement, between June 2018 and March 2020, Bernal was a member of an international conspiracy that laundered large amounts of money. The conspiracy involved two sides: Those responsible for contacting victims by phone and tricking them into sending thousands of dollars to U.S.-based bank accounts, and those responsible for laundering the proceeds through those bank accounts. The money launderers received and transferred the ill-gotten gains to their co-conspirators in Colombia and the United States, and in the process concealed the nature, source, location, ownership and control of the proceeds.

The money launderers opened bank accounts at various financial institutions using false mailing addresses. Shortly after the accounts were opened, the phone scammers – many of whom lived in Colombia – made unsolicited phone calls to victims in the United States using spoofed phone numbers. This allowed callers to conceal their identity and make it appear as if the calls originated from locations in the United States, such as a police station where the victim lived or had lived in the past.

During calls with victims, the scammers impersonated federal and local law enforcement officers and made the victims believe they were implicated in a crime. Using this as leverage, the conspirators coerced victims to make large wire transfers or other payments to purportedly resolve their criminal liability. The scammers instructed victims to wire funds to the various bank accounts opened by the money launderers. Once the money was deposited into the accounts, the money launderers quickly moved to withdraw the funds, purchase cashier’s checks to send to other conspirators, and drain the balance of the accounts before the funds could be frozen.

According to the United States’ sentencing memorandum, Bernal opened bank accounts at 10 different financial institutions to carry out the money laundering scheme. In many instances, Bernal received the fraud proceeds shortly after he opened the bank accounts and drained the balance of the accounts in a matter of days. After banks stopped allowing Bernal to open new accounts, he began to receive and launder cashier’s checks sent from his co-conspirators that were purchased with fraud proceeds obtained from other victims. To carry out this new role, Bernal and his co-conspirators traveled to multiple Moneytree locations in the same day for the purpose of laundering large amounts of fraud proceeds over a short period of time.

Over the course of approximately two years, Bernal received and laundered fraud proceeds more than 30 times from 27 different victims, including varying amounts of cashier’s checks from 14 of his co-conspirators, totaling an amount of $327,040.72.

“These scammers are sophisticated and will prey on emotion and fear,” said U.S. Attorney Tara McGrath. “This defendant turned deceit into profit, so we turned his profit into a conviction.”

“FBI Los Angeles works closely with our law enforcement partners to combat money laundering in our communities. Mr. Bernal’s sentence should serve as a deterrent to those who seek to prey on innocent victims” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “The FBI reminds the public to be vigilant and never send money, gift cards, or share personal identifying information with a caller and to verify that the caller is a legitimate business or organization. The public is urged to report these calls to 1-800-CALL-FBI or tips.fbi.gov.”

“The U.S. Border Patrol is an all-threats agency, and we will continue to work with our law enforcement partners to protect our citizens from any and all threats,” said Chief Patrol Agent Patricia McGurk-Daniel. “I couldn’t be prouder of the work done by these agents to secure a significant and successful prosecution.”

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 being prosecuted by Assistant U.S. Attorney Patrick C. Swan.

DEFENDANT                                   Case Number             23-cr-1483-AGS

Juan Pablo Prada Bernal                     Age: 24                       Columbia

SUMMARY OF CHARGES

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

Maximum Penalties: Twenty years in prison and a $250,000 fine or twice the value of the property involved in the transaction

INVESTIGATING AGENCIES

U.S. Department of Homeland Security

U.S. Customs and Border Protection

U.S. Border Patrol

Federal Bureau of Investigation

Organized Crime Drug Enforcement Task Force

U.S. Secret Service

NEWS RELEASE SUMMARY – September 6, 2024

SAN DIEGO –Andrei Bogdan Arteni of Romania appeared in federal court in Los Angeles today to face charges in the Southern District of California that he conspired to steal hundreds of thousands of dollars in public-assistance benefits from low-income families that need the funds to pay for food, housing and other necessities. He was ordered detained and will appear in federal court in San Diego for his next hearing.

Arteni was arrested in Santa Ana yesterday in connection with the thefts, which resulted in losses exceeding $580,000. According to the complaint, between October 2023 and March 2024, he and co-conspirators installed skimming devices at point-of-sale terminals in grocery stores and large-volume retailers in communities with higher concentrations of public benefit recipients. The data skimmed from government-issued benefit cards, known as EBT (electronic benefit transfer) cards, was then re-encoded onto the magnetic strips of fraudulent cards that they used to make tens of thousands of dollars in unauthorized ATM withdrawals over the course of several months.

Also yesterday, authorities served court-authorized search warrants at two storage units in National City and Newport Beach, and Romanian authorities served warrants on 10 residences across Romania. U.S. federal authorities seized more than $550,000 in cash, jewelry, and skimming devices. Romanian authorities seized two properties in the cities of Iași and Podu Iloaiei, along with more than $190,000 and €200,000 cash.

“Stealing public assistance funds from those who need it most takes greed to a new depth,” said U.S. Attorney Tara McGrath. “With this case, we are enforcing laws designed to protect the security of electronic payment devices and ensure public confidence in everyday transactions.”

“EBT fraud is especially devastating as it targets our most vulnerable community members and can cause extreme financial hardship,” said Jason Reynolds, the Special Agent in Charge of the U.S. Secret Service’s San Diego Field Office. “The U.S. Secret Service, and our partners remain committed to investigating these crimes so that those receiving these benefits do not have to worry about their benefits being stolen.”

“Homeland Security Investigations is dedicated to working with our foreign law enforcement partners to disrupt and dismantle trans-national fraud groups who victimize U.S. banking institutions and government programs for their financial benefit,” said HSI Los Angeles Special Agent in Charge Eddy Wang. “This case is an example of how HSI will go to great lengths to bring those who perpetrate these crimes to justice.”

According to court documents, Arteni and his co-conspirators used false identities to rent out an Airbnb, a storage unit in Newport Beach, and a storage unit in National City. The storage unit in Newport Beach stored several household appliances with cash concealed inside—some of which were shipped to Romania.

According to the complaint, the brothers were linked to the crimes through surveillance photos at ATMs in San Diego County where they made fraudulent withdrawals. Victims are located throughout Southern California, including San Diego, Los Angeles and Riverside.

This case is being prosecuted by Assistant U.S. Attorneys Ronald Sou and David Kete. Valuable assistance was provided by the U.S. Attorney’s Office for the Central District of California, U.S. Customs and Border Protection, Los Angeles Sheriff’s Department, the National City Police Department, and Romanian authorities, including Romania Public Ministry Prosecutor’s Office of DIICOT – Galați Territorial Service, Galați and Iași Police-Organized Crime Brigades.

If you or someone you know has had your EBT benefits stolen, San Diego County’s Department of Health & Human Services Agency requires that the theft be reported within 10 days.  More information for San Diego County victims is available at: https://www.sandiegocounty.gov/content/sdc/hhsa/programs/ssp/ebt_fraud.html. 

DEFENDANT                                   Case Number 24MJ1934                                         

Andrei Bogdan Arteni                        35                    Santa Ana

SUMMARY OF CHARGES

Title 18, U.S.C. §§1029(a)(2), (b)(1), and (c)(1)(A)(i) – Use and Attempted Use of Unauthorized Access Devices

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

Title 18, U.S.C. §1029(a)(2), (b)(2), and (c)(1)(A)(i) – Access Device Conspiracy

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

Title 18, U.S.C. §§ 982(a)(2)(B) and 1029(c)(1)(C) – Criminal Forfeiture

INVESTIGATING AGENCIES

Homeland Security Investigations, Los Angeles

United States Secret Service, San Diego

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

NEWS RELEASE SUMMARY – September 6, 2024

SAN DIEGO – Wynn Las Vegas, the Las Vegas casino and subsidiary of Wynn Resorts, Limited, agreed today to forfeit $130,131,645 to settle criminal allegations that it conspired with unlicensed money transmitting businesses worldwide to transfer funds for the financial benefit of the casino.

Today’s settlement is believed to be the largest forfeiture by a casino based on admissions of criminal wrongdoing.

“Casinos, like all businesses, will be held to account when they allow customers to evade U.S. laws for the sake of profit,” said U.S. Attorney Tara McGrath. “Federal oversight seeks to prevent illegal funds from tainting legitimate businesses, ensuring that casinos offer a clean, thriving, and safe entertainment option.”

As part of a Non-Prosecution Agreement, which allows a company or individual to avoid criminal prosecution in exchange for meeting certain criteria, Wynn Las Vegas (WLV) admitted that it illegally used unregistered money transmitting businesses to circumvent the conventional financial system.

For example, WLV regularly contracted with third-party independent agents acting as unlicensed money transmitting businesses to recruit foreign gamblers to WLV. For the gamblers to repay debts to WLV or have funds available to gamble at WLV, the independent agents transferred the gamblers’ funds through companies, bank accounts, and other third-party nominees in Latin America and elsewhere, and ultimately into a WLV-controlled bank account in the Southern District of California.

Funds deposited into the WLV-controlled account were transferred into the WLV cage account. WLV employees, with the knowledge of their supervisors, and working with the independent agents, eventually credited the WLV account of each individual patron. The convoluted transactions enabled foreign gamblers at WLV to evade foreign and U.S. laws governing monetary transfer and reporting.

In one example, Juan Carlos Palermo, while acting as an independent agent for WLV, operated and controlled multiple unlicensed money transmitting businesses in the United States and abroad that conducted more than 200 transfers with bank accounts controlled by WLV or associated entities. These transactions, on behalf of more than 50 foreign casino patrons, exceeded $17.7 million.

WLV also facilitated the unlicensed transfer of money through “Human Head” or “Human Hat” gambling, known in Mandarin as “人头” or “ren tou.” In this scheme, a person known as a “Human Head” purchased chips at WLV and gambled at WLV as a proxy for another nearby person who, in some instances, because of federal Bank Secrecy Act or Anti-Money Laundering (BSA/AML) laws, was unable or unwilling to conduct financial transactions or gamble under their own identity. The true patron, however, would direct the Human Head’s gaming. WLV knowingly allowed this form of gambling without scrutinizing the true patron’s funds and without reporting the suspicious activity.

In another example, WLV facilitated the unlicensed transfer of money to and from China through a method known as “qian chen” or “Flying Money.” A money processor, acting as an unlicensed money transmitting business, collected U.S. dollars in cash from third parties in the United States and delivered that cash to a WLV patron who could not otherwise access cash in the U.S. The patron then electronically transferred the equivalent value of foreign currency from the patron’s foreign bank account to a foreign bank account designated by the money processor. The WLV patron paid the money processor a percentage of the value transferred.  Like Human Head gambling, WLV knowingly allowed this form of gambling without scrutinizing the source of funds and without reporting the suspicious activity.

WLV also facilitated the international transfer of money and conducted other financial transactions for WLV patrons whose activity should have triggered the filing of Suspicious Activity Reports. For example, in 2018, WLV facilitated financial transactions worth approximately $1.4 million for an individual who two years earlier had been publicly linked to proxy gambling and a year earlier, while in the company of the President of Marketing of a WLV international affiliate, was denied entry to the United States because of suspected associations with a criminal organization.

In another instance, WLV allowed and did not report transactions involving millions of dollars by an individual who, according to publicly available information, had spent six years in prison in China for conducting unauthorized international monetary transactions and violations of other financial laws.

“Of the many unique authorities HSI is able to enforce, understanding and investigating complex financial crimes that lead to holding criminals accountable for their actions, is one that HSI does best,” said Christopher Davis, acting special agent in charge for HSI San Diego. “The success of this investigation is in part due to our partner agencies’ cooperation and dedication to seeing these long-term investigations through to bring justice to these companies and protect American financial institutions.”

“Federal laws that regulate the reporting of financial transactions are in place to detect and stop illegal activities. Deliberately avoiding Bank Secrecy Act requirements is a form of money laundering. IRS Criminal Investigation is committed to following the money and enforcing these laws, wherever it leads” said Carissa Messick, Special Agent in Charge for IRS-CI in Las Vegas.

“Law enforcement put their collective authorities together to ensure the integrity of our financial systems and that they are not circumvented,” said DEA Special Agent in Charge Brian Clark.

As part of this investigation, 15 other defendants previously have admitted money laundering, unlicensed money transmitting, or other crimes, with associated criminal penalties of over $7.5 million. 

This case was prosecuted by Assistant U.S. Attorneys Mark W. Pletcher and Carl F. Brooker IV.

INVESTIGATING AGENCIES

Homeland Security Investigations

IRS-Criminal Investigations, Las Vegas Financial Crimes Task Force

Drug Enforcement Administration