Category: MIL-OSI

Source: US FBI

SACRAMENTO, Calif. — Shasta Lea Schnittker, 42, of Montague, was sentenced Aug. 26 by U.S. District Judge Kimberly J. Mueller to eight years and one month in prison for possession of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Feb. 22, 2022, Schnittker possessed 1,142 images and 110 videos of child sexual abuse material, or child pornography, on her computer. The child sexual abuse material included depictions of minors and toddlers involved in sexually explicit conduct and of sadistic and masochistic abuse. Law enforcement also found a video depicting Schnittker, which she had recorded, wherein she held up a flash drive and said, “This is where I keep all my CP.” In the self-recorded video, Schnittker then used the flash drive to play a video of child pornography.

This case was the product of an investigation by the FBI, with assistance from the Siskiyou County Sheriff’s Office, and the Siskiyou County District Attorney’s Office. Assistant U.S. Attorneys Emily G. Sauvageau and Denise Yasinow prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.

Source: US FBI

SACRAMENTO, Calif. — A federal grand jury returned a 32-count indictment against Maria Dickerson, aka Dulce Pino, 47, of Sacramento, charging her with 24 counts of wire fraud, one count of securities fraud, and seven counts of money laundering, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed following her arrest.

According to the indictment, from 2020 through 2024, Dickerson created an investment scheme, selling interest in her illusory shell company, Creative Legal Fundings of California, to investors. Dickerson promised investors that their investments were safe and secure and backed by substantial starting capital. Dickerson promised approximately 140 investors a fixed percent of return per month on their principal investment with additional compounding monthly interest if they left their money invested with her. In reality, Dickerson used new investor money to pay off prior investors, to fund a lavish lifestyle, and to purchase Mercedes-Benz vehicles and a home in Sacramento. Dickerson did not register the sale of her securities with the Securities and Exchange Commission. Dickerson took money from investors and collected millions of dollars in investment funds solicited with her false promises and representations.

This case is the product of an investigation by the Federal Bureau of Investigation and IRS Criminal Investigation, with assistance from the Alabama Securities Commission. Assistant U.S. Attorneys Kristin F. Scott and Rosanne L. Rust are prosecuting the case.

The Securities and Exchange Commission is filing a parallel action against Dickerson. The Business, Consumer Services and Housing Agency of the California Department of Financial Protection and Innovation previously filed a Desist and Refrain Order against Dickerson.

If convicted, Dickerson faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of wire fraud. Additionally, she faces a maximum statutory penalty of 10 years in prison and a fine of $250,000 for each count of money laundering. On the securities fraud charge, Dickerson faces a statutory maximum penalty of 20 years in prison and a fine of up to $5 million. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Source: US FBI

SACRAMENTO, Calif. — Brent Hooton, 51, of Marysville, was sentenced today by U.S. District Judge Dale A. Drozd to 27 years in prison for sexual exploitation of a child and distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in May 2021 Hooton produced three images of a severely autistic child who was under the age of 12 engaged in sexually explicit conduct. Hooton shared these images on Kik Messenger with an undercover FBI agent. When Hooton’s phone was searched pursuant to a warrant, agents discovered that in May 2021, Hooton distributed sexually explicit images of the child victim to at least six other users on Kik. Further, in this timeframe, Hooton distributed on Kik at least four images of other children engaged in sexually explicit conduct.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Denise N. Yasinow prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

Source: US FBI

FRESNO, Calif. — James Patrick Breedlove III, 34, formerly of Bakersfield, was sentenced today to 20 years and 10 months in prison to be followed by a lifetime term of supervised release for sexual exploitation of a minor, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between January 2019 and August 2020, Breedlove knowingly coerced minors to engage in sexually explicit conduct for the purpose of producing images and videos of such conduct. In January 2020, Breedlove posed as a 16-year-old to obtain images and videos of a minor victim engaging in sexually explicit conduct. After receiving one such image, Breedlove threatened to send it to other children at the minor victim’s school if she did not send more images and videos of herself engaging in sexually explicit conduct.

Court documents also indicate that Breedlove used Snapchat to contact multiple other minor victims between the ages of 13 and 17 years old. By misrepresenting his identity and threatening to distribute the images, Breedlove coerced other minor victims to send images and videos of themselves engaging in sexually explicit conduct.

This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Brittany M. Gunter prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.

Source: US FBI

SACRAMENTO, Calif. — Euan David MacGregor, formerly known as David Joseph Bean, 54, of Iowa City, Iowa, pleaded guilty Tuesday to one count of wire fraud for defrauding his former employer out of more than $3.2 million, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between November 2014 and January 2020, Euan MacGregor, then known as David Bean, used his position as a Chief Administrative Officer to embezzle money from his employer.

According to court documents, MacGregor defrauded his former employer in two ways. First, he diverted at least 122 checks made payable to his employer to bank accounts that he controlled. MacGregor did this by creating a shell corporation that had a business name similar to the name of his employer and depositing the checks into bank accounts that he opened in the name of the shell corporation. MacGregor then presented false financial information to the company’s president and shareholders causing them to believe they had received the monies he diverted. In addition, MacGregor falsely represented to his employer that he was outsourcing his employer’s bookkeeping work to a third party, a company named Essential Business Services, another company that MacGregor created and controlled. MacGregor’s false representations caused his employer to pay Essential Business Services thousands of dollars each month for bookkeeping services that it did not perform. MacGregor used the money he fraudulently obtained to pay for personal expenses for him and his family, including mortgage payments, the payment of credit cards, educational expenses, travel, and the purchase of vehicles.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.

MacGregor is scheduled to be sentenced by U.S. District Judge John A. Mendez on Jan. 28, 2025. MacGregor faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

Source: US FBI

LOS ANGELES – An Illinois woman was sentenced today to 24 months in federal prison for conspiring to unlawfully export to Russia defense articles – including thermal imaging riflescopes and night-vision goggles – without a license in violation of the Arms Export Control Act.

Elena Shifrin, 62, of Mundelein, Illinois, was sentenced by United States District Judge André Birotte Jr.

Shifrin pleaded guilty in February 2022 to one count of conspiracy to violate the Arms Export Control Act.

According to court documents, from 2017 to 2020, Shifrin participated in the export of more than 60 defense articles from the United States to Russia without obtaining from the State Department a valid license or other approval for such exports. 

As Shifrin admitted at her change of plea hearing, Shifrin’s co-conspirators purchased the defense articles – including thermal riflescopes, weapons sights, monoculars and night-vision googles – from online sellers in the United States and directed the sellers to mail those items to Shifrin or other co-conspirators in Illinois and California. After receiving the items, Shifrin mailed them to co-conspirators in Russia without obtaining the required licenses.

To conceal her unlawful activities, when Shifrin exported the defense articles to Russia, she listed fictitious sender names and addresses on the packages containing the defense articles, falsely identified the items in the packages as non-export-controlled items such as clothing, and concealed the defense articles in other items such as toolkits and kitchen appliances.

One of Shifrin’s co-conspirators, Igor Panchernikov, 43, a former Corona resident who once served in the United States Air Force Reserves, pleaded guilty in March 2023 to one count of conspiracy to violate the Arms Export Control Act and was sentenced in June 2023 to 27 months in federal prison.

Two other defendants charged in this case – Boris Polosin, of Russia, and Vladimir Gohman, of Israel – are fugitives. Charges against another defendant – Vladimir Pridacha, 59, of Volo, Illinois, were dismissed on January 19 at the request of prosecutors.

The FBI’s Los Angeles and Chicago field offices investigated this matter, with substantial assistance from the United States Postal Inspection Service and Homeland Security Investigations.

Assistant United States Attorneys David T. Ryan of the Terrorism and Export Crimes Section, and Wilson Park of the General Crimes Section are prosecuting this case. The Counterintelligence and Export Control Section of the Department of Justice’s National Security Division is providing substantial assistance.

Source: US FBI

LOS ANGELES – Four defendants from Los Angeles County were arrested today on a nine-count indictment charging them with committing armed robberies of several businesses – mostly 7-Eleven stores in South Los Angeles – during a nearly two-month crime spree late last year in which they allegedly posted photographs on Instagram of themselves holding stolen cash.

The indictment, returned July 10 and unsealed today, charges the following defendants with one count of conspiracy to interference with commerce by robbery and one count of interference with commerce by robbery (Hobbs Act):

• Charles Christopher, 24, of Compton;
• D’Angelo Spencer, 26, of South Los Angeles;
• Jordan Leonard, 25, of Torrance; and
• Tazjar Rouse, 22, of Hollywood.

The defendants also have been charged with various counts of Hobbs Act robbery and brandishing a firearm in furtherance of a crime of violence. Christopher and Leonard were arraigned today in United States District Court in downtown Los Angeles and were ordered jailed without bond. They pleaded not guilty to the charges against them and a September 17 trial was scheduled. Rouse made his initial appearance today in federal court in Kansas City, Missouri. Spencer is expected to be arraigned in federal court in Los Angeles tomorrow.

“Violent gun crime leaves lasting emotional and psychological scars for victims,” said United States Attorney Martin Estrada. “Anyone thinking that violent robberies are a good way to make money should take note that there will be consequences for your actions.”

According to the indictment, from November 4, 2023, to December 24, 2023, the defendants committed a series of armed robberies, mostly of 7-Eleven stores in South Los Angeles. One victimized store was a CVS in Hollywood. The defendants traveled to the targeted stores in a BMW, jumped over the counters, took money from the stores’ cash registers, and placed the money into a black Nike bag. One of the defendants – usually either Christopher or Leonard – allegedly pointed a firearm at a store employee or customer and demand either their cellphone or their wallet.

On November 28, 2023, following the robbery of a 7-Eleven store in South Los Angeles earlier that day, Leonard posted a photograph on Instagram with stacks of cash, captioned his post “love my bros we go hit every time,” and tagged the Instagram accounts of Christopher and Spencer, the indictment alleges.

In total, the defendants allegedly netted approximately $7,617 in cash during the crime spree.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

If convicted, the defendants would face a statutory maximum sentence of 20 years in federal prison for each Hobbs Act-related count and – for each firearm brandishing count – a mandatory minimum sentence of seven years in federal prison and a statutory maximum sentence of life imprisonment.

Operation Safe Cities establishes strategic enforcement priorities with an emphasis on prosecuting the most significant drivers of violent crime. Across this region, the most damaging and horrific crimes are committed by a relatively small number of particularly violent individuals. This strategic enforcement approach is expected to increase the number of arrests, prosecutions and convictions of recidivists engaged in the most dangerous conduct. It is designed to improve public safety across the region by targeting crimes involving illicit guns, prohibited persons possessing firearms, or robbery crews that cause havoc and extensive losses to retail establishments.

The FBI and the Los Angeles Police Department are investigating this matter.

Assistant United States Attorney Mirelle N. Raza of the General Crimes Section is prosecuting this case.

Source: US FBI

LOS ANGELES – A Montrose man pleaded guilty today to defrauding investors out of more than $1 million by making false promises that they would receive an ownership interest in several adult entertainment webcam websites and then using their money on personal expenses, including luxury items.

Patrick Khalafian, 54, pleaded guilty to one count of wire fraud.

According to his plea agreement, from November 2009 to October 2016, Khalafian solicited investments for businesses – including 168 Entertainment LLC, Empire Entertainment Group Inc., and EEG LLC – that purportedly developed and operated adult entertainment websites.

Khalafian falsely represented to victims that their investments would be used for business operations, including developing software and the platform for the proposed websites, paying for computer servers, hiring employees, and purchasing advertising. He also falsely promised that the victims would be repaid for their investments by a specific date, that they would receive ownership interests in the companies, and would receive a share of the companies’ profits.

Rather than investing the victim’s money, Khalafian instead used their funds to pay off his debts, including to prior victims, and to fund his own lifestyle, including to pay for gambling expenses and luxury shopping sprees.

To lull the victims into believing that their funds were being used as he had promised, Khalafian lied to his victims about the status of the adult entertainment websites purportedly being developed by the companies in which they had invested. Khalafian eventually stopped responding to victims and disconnected and changed his phone number and email address to evade their inquiries.

For example, in July 2015, Khalafian met with one victim at Mastro’s Steakhouse in Beverly Hills and falsely represented at the meeting that a $1 million investment from the victim would be used to pay for business expenses such as computer servers, employees, and advertising for the adult webcam business. Later that month, the victim – relying on Khalafian’s false promises – wired $1 million to a Khalafian-controlled bank account.

On the same day he received the funds, Khalafian transferred $200,000 of the victim’s money to an account to pay his rent, for luxury cars, and other personal expenses. The day after he received these funds, Khalafian used $66,000 of the victim’s money to purchase a new Ford F-150 truck. He also used more than $100,000 of the victim’s money at casinos, to pay back another investor, to pay his rent, and on luxury shopping sprees at retailers such as Tiffany, Barney’s, Fendi, Saks Fifth Avenue, and Louis Vuitton. Khalafian never paid the victim back any of his investment, and he stopped responding to the victim’s messages in October 2016.

Khalafian also admitted to conning two other victims in 2015 and 2016 out of $80,000 and $90,000, respectively, using their money on personal expenses and not his adult webcam business. Khalafian paid back neither victim any of their money.

In total, Khalafian’s fraud caused a total loss of at least $1.17 million.

United States District Judge André Birotte Jr. scheduled a February 21, 2025 sentencing hearing, at which time Khalafian will face a statutory maximum sentence of 20 years in federal prison.

The FBI investigated this matter.

Assistant United States Attorney Roger A. Hsieh of the Major Frauds Section is prosecuting this case.

Source: US FBI

SANTA ANA, California – The former senior director of fiscal services at an Orange County public school district was sentenced today to 70 months in federal prison for embezzling nearly $16.7 million from the district over several years.

Jorge Armando Contreras, 53, of Yorba Linda, was sentenced by United States District Judge Fred W. Slaughter, who also ordered him to pay $16,694,942 in restitution.

Contreras pleaded guilty on March 28 to one count of embezzlement, theft, and intentional misapplication of funds from an organization receiving federal funds.

“Instead of using his job at a public school district to help socio-economically disadvantaged children, Contreras embezzled millions upon millions of dollars, which he flagrantly spent on a luxury home, car, and designer clothes and accessories,” said United States Attorney Martin Estrada. “Today’s sentence highlights my office’s determination to prosecute and punish those who betray the public trust – especially when their behavior affects some of our community’s most vulnerable members.”

Contreras was the senior director of fiscal services at Magnolia School District, which serves students in Anaheim and Stanton. In this role, Contreras, whom the school district hired in 2006, managed the district’s fiscal operations. The schools in this district educate children from preschool through sixth grade – 81% of whom are classified as socio-economically disadvantaged.

He managed and had access to various school district bank accounts as well as the student body bank account. He caused checks from these accounts to be deposited into his personal bank account.

Contreras wrote checks in small dollar amounts written to “M S D,” with the letters spaced out, and, after receiving the proper signatures from others, would include fictitious names and increase the amounts of the checks and deposit the checks into his personal bank account via ATMs. To conceal his fraud, Contreras provided bank reconciliation packets to others at the school district with falsified bank statements and records.

In total, Contreras embezzled approximately $16,694,942 from the school district.

The school district placed Contreras on administrative leave in August 2023 and filed a lawsuit against him in Orange County Superior Court.

Law enforcement so far has seized approximately $7.7 million in personal and real property traced to the scheme, including a home in Yorba Linda, a 2021 BMW automobile, 57 luxury designer bags (mostly Louis Vuitton), various pieces of jewelry, designer clothes and shoes, and eight bottles of Clase Azul Ultra luxury tequila.

The FBI, IRS Criminal Investigation, and the United States Department of Education Office of Inspector General investigated this case.

Assistant United States Attorneys Billy Joe McLain of the Public Corruption and Civil Rights Section, Brett A. Sagel of the Corporate and Securities Fraud Strike Force, and James E. Dochterman of the Asset Forfeiture and Recovery Section prosecuted this case.

Source: US FBI

LOS ANGELES – A Ventura County physician who worked for two Pasadena hospices pleaded guilty today to defrauding Medicare out of more than $3 million by billing the public health insurance program for medically unnecessary hospice services.

Dr. Victor Contreras, 68, of Santa Paula, pleaded guilty to one count of health care fraud.

According to his plea agreement, from July 2016 to February 2019, Contreras and co-defendant Juanita Antenor, 61, formerly of Pasadena, schemed to defraud Medicare by submitting nearly $4 million in false and fraudulent claims for hospice services submitted by two hospice companies: Arcadia Hospice Provider Inc., and Saint Mariam Hospice Inc. Antenor controlled both companies.

Medicare only covers hospice services for patients who are terminally ill, meaning that they have a life expectancy of six months or less if their illness ran its normal course.

Contreras falsely stated on claims forms that patients had terminal illnesses to make them eligible for hospice services covered by Medicare, typically adopting diagnoses provided to him by hospice employees whether or not they were true. Contreras did so even though he was not the patients’ primary care physician and had not spoken to those primary care physicians about the patients’ conditions. Medicare paid on the claims supported by Contreras’ false evaluations and certifications and recertifications of patients.

In total, approximately $3,917,946 in fraudulently claims were submitted to Medicare, of which a total of approximately $3,289,889 was paid.

According to Medical Board of California records, Contreras is a licensed physician in California, but has been on probation with the Board since 2015 and is subject to limitations on his practice.  

United States District Judge André Birotte Jr. scheduled an October 25 sentencing hearing, at which time Contreras will face a statutory maximum sentence of 10 years in federal prison.

Antenor remains at large. Co-defendant Callie Black, 65, of Lancaster, who allegedly recruited patients for the hospice companies in exchange for illegal kickbacks, has pleaded not guilty and is currently scheduled to go on trial on October 15.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

The United States Department of Health and Human Services Office of Inspector General, the FBI, and the California Department of Justice investigated this matter. 

Assistant United States Attorneys Kristen A. Williams of the Major Frauds Section and Aylin Kuzucan of the General Crimes Section are prosecuting this case.