Category: MIL-OSI

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Former Federal Correctional Officer Faces Additional Charges Involving Sexual Abuse of Inmates and a Federal Civil Rights Violation

Source: US FBI

OAKLAND – A federal grand jury issued a superseding indictment yesterday charging former correctional officer Darrell Wayne Smith with 15 counts of sexual abuse, including a civil rights violation, against five female victims who were inmates under his custody and control at Federal Correctional Institution, Dublin (FCI Dublin).

“As alleged, Officer Daryl Smith engaged in appalling criminal acts when he sexually abused those in his care and custody,” said Deputy Attorney General Lisa Monaco. “This superseding indictment is the latest product of the Department’s ongoing work to seek justice for victims of sexual assault at FCI Dublin. We remain steadfast in our commitment to root out sexual assault within the BOP and hold to account those who so egregiously violate their duty.”

“Federal prison guards must treat prisoners humanely,” said U.S. Attorney Ismail Ramsey. “Victimizing inmates sexually and denying them basic civil rights must end. Today’s superseding indictment demonstrates my office’s commitment to uncover such misconduct and prosecute officers who allegedly perpetrate such abuse.”

“Today’s superseding indictment includes three new allegations of sexual assault by Smith, a Correctional Officer at FCI Dublin. The 15 charges against Smith allege he sexually abused multiple inmates over several years, including brazen and violent acts. The Department of Justice Office of the Inspector General is committed to aggressively investigating allegations of abuse at FCI Dublin and across the Federal Bureau of Prisons,” said Inspector General Michael E. Horowitz.

“The defendant’s alleged actions are some of the most disturbing charges we’ve seen for a former federal corrections officer,” said Executive Assistant Director Michael D. Nordwall of the FBI’s Criminal, Cyber, Response, and Services Branch. “Sexual abuse scars everyone who survives it but can be particularly traumatizing when it’s perpetrated by someone in a position of trust or authority. The FBI is steadfast in our commitment to defending the civil rights of everyone and investigating anyone who allegedly violates this fundamental protection.”

“These allegations of sexual abuse are deeply troubling,” said FBI San Francisco Special Agent in Charge Robert K. Tripp. “We are committed to enforcing civil rights statutes and holding accountable those who abuse their positions.”

The initial federal indictment against Darrell Wayne Smith, 55, now residing in Florida, was filed April 13, 2023, and charged him with engaging in illegal sexual acts with three female inmates while he was employed at FCI Dublin as a correctional officer. The initial indictment charged 12 counts that alleged 12 acts occurring between May 2019 and May 2021 in which Smith engaged in separate sexual conduct with each of the three inmate victims.

The superseding indictment issued yesterday, which supplants the initial indictment, identifies two additional victims and charges 15 counts against Smith. It charges all 12 counts of sexual abuse that were charged in the initial indictment and adds two new counts of sexual abuse, each involving one of the two additional victims. Each additional victim is described as being an inmate at FCI Dublin who suffered abusive sexual conduct by Smith while under his custodial and disciplinary control. Smith’s charged sexual conduct is now alleged to have begun as early as August 2016.

The superseding indictment also charges a third new count that alleges a federal civil rights violation by Smith. The civil rights violation arises from aggravated sexual abuse that Smith is alleged to have perpetrated against one of the female inmates.

Each alleged victim is identified in the superseding indictment by initials only and is alleged to have been in official detention and under Smith’s custodial, supervisory, and disciplinary authority at the time of the charged conduct. Each count in the superseding indictment corresponds with one encounter during which Smith allegedly engaged in unlawful sexual acts or contact with one of the victims, except for the newly charged civil rights violation which is based upon alleged aggravated sexual abuse also charged in another count.

Smith is now charged with six counts of sexual abuse of a ward, seven counts of abusive sexual contact, one count of aggravated sexual abuse, and one count of deprivation of rights under color of law.

The charges presented in the superseding indictment are merely allegations and the defendant is presumed innocent unless proven guilty in a court of law.

Smith’s arraignment on the superseding indictment has not yet been set. However, Smith is currently set to begin jury trial on March 17, 2025, in front of U.S. District Judge Yvonne Gonzalez Rogers for the Northern District of California.

If convicted, he faces a maximum penalty of life in prison for each count of aggravated sexual abuse and deprivation of rights under color of law. Additionally, Smith faces a statutory maximum penalty of 15 years in prison for each count of sexual abuse of a ward and a maximum penalty of two years in prison for each count of abusive sexual contact. In addition, as part of any sentence the court will order a term of supervised release and may order a fine of up to $250,000 for each count, restitution and additional assessments. A federal district court judge will determine a sentence only after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant U.S. Attorneys Molly Priedeman and Andrew Paulson for the Northern District of California are prosecuting the case, with the assistance of Kay Konopaske. The prosecution is the result of an investigation by the FBI and DOJ-OIG.

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U.S. Attorney Announces Law Enforcement Actions Directed at Fentanyl Trafficking in Santa Cruz County

Source: US FBI

SAN JOSE – The U.S. Attorney’s Office for the Northern District of California has filed a series of federal criminal complaints charging three defendants with possession with the intent to distribute fentanyl in Santa Cruz County, announced United States Attorney Ismail Ramsey and Drug Enforcement Administration (DEA) Special Agent in Charge Brian Clark. The complaints have been filed as part of a law enforcement operation focused on investigating and prosecuting fentanyl traffickers and illegal open-air fentanyl drug markets in the Santa Cruz area.

“The dramatic increase in the use of fentanyl in the last five years has destroyed countless lives in and around Santa Cruz County. We stand prepared to work with our federal and local law enforcement partners to address the damage being done to our communities,” said U.S. Attorney Ramsey. “We will seek to bring to justice the purveyors of this poison in our neighborhoods – if you are considering selling fentanyl in Santa Cruz, it is time to think again.”

“The dangerous shift from plant-based drugs to synthetic has created the deadliest drug threat facing our nation, fentanyl. This insidious drug has provided the fuel for 70% of the poisoning deaths last year and requires a multi-agency approach to save lives,” said DEA Special Agent in Charge Brian Clark. “DEA will do everything in our power to prevent those peddling poison in Santa Cruz from destroying more lives.”

“The impacts we’ve seen from fentanyl in our community have been devastating and unlike any drug I’ve seen in my 36 years in law enforcement,” said Santa Cruz County Sheriff Jim Hart. “The surge in overdose deaths has shattered families and left us facing an unprecedented public health crisis. By establishing our Fentanyl Task Force and forming these crucial partnerships with state and federal agencies, we are dedicated to holding those who distribute this poison accountable. This should serve as a message to those who are choosing to sell drugs in our community that we are not taking this lightly.”

According to the filed criminal complaints, the distribution of fentanyl has fueled a dramatic increase in overdose deaths over the last years. According to these documents, 133 people died of fentanyl-related overdoses in Santa Cruz County in 2023. The County’s population was approximately 261,547. By contrast, in 2019, Santa Cruz County experienced 5 fentanyl-related overdose deaths.

The defendants named in these complaints are Miguel Geronimo, 30, Jesus Nunez Martinez, 49, and Oscar Angel Alvarez, 28. A separate criminal complaint has been filed against each defendant.

According to the complaint filed against Geronimo, on May 1, 2024, shortly before noon, detectives from the Santa Cruz County Sheriff’s Office were patrolling the area of 115 Coral Street in Santa Cruz that is known to be a common drug-trafficking area. The detectives observed multiple persons entering and exiting a van, none spending more than a couple of minutes in the van. The deputies approached and allowed a drug-sniffing dog to circle the vehicle. The dog positively alerted to the van, indicating the presence of certain narcotics. In the van, the detectives encountered Geronimo, who was lying down in the back-passenger section of the van, and another person who was in the front passenger seat. Detectives searched the van and found approximately 86.6 grams of fentanyl, sales paraphernalia, and over $3,300 in cash. Geronimo is charged with possession with intent to distribute fentanyl.

According to the complaint filed against Martinez, on February 9, 2024, detectives with the Santa Cruz County Sheriff’s Office spotted Martinez driving with a suspended driver’s license and expired tags. The complaint alleges another deputy arrived with a drug-sniffing dog and allowed the dog to circle Martinez’s vehicle. After the dog alerted the deputies to the presence of drugs, deputies searched the car. The complaint details that the investigating deputies found various items, including a distributable amount of actual methamphetamine, sales paraphernalia, and over $750 in cash in the vehicle. Furthermore, more than a month later, on March 29, 2024, sheriff’s detectives conducted a traffic stop on Martinez for failing to stop at a stop sign. Another search of Martinez’s car resulted in the seizure of additional drugs, sales paraphernalia, and over $400 in cash. On this occasion, Martinez possessed a distributable amount of fentanyl and carfentanil, a fentanyl analogue and synthetic opioid that is approximately 100 times more potent than fentanyl. Martinez is charged with possession with intent to distribute fentanyl, carfentanil, and methamphetamine.

According to the complaint filed against Alvarez, the defendant was found in possession of various controlled substances, including fentanyl, in the early morning of February 5, 2024. More specifically, the complaint describes how a sheriff’s deputy was patrolling the area of the 500 block of Water Street in Santa Cruz—an area known for drug trafficking, drug use, and other crime. At approximately 4:12AM, the deputy spotted Alvarez outside the main office of a motel, wearing two backpacks. The deputy approached Alvarez, who claimed he was trying to get a room, although the lobby of the hotel was empty, and Alvarez walked away from the hotel lobby and to the rear of the motel. A later search of Alvarez and the backpacks revealed more than 15 baggies of suspected drugs packaged for sales and more than $2,500 cash. After subsequent testing, the substances in Alvarez’s possession were found to include more than 150 grams of fentanyl, over 95 grams of methamphetamine, and more than 50 grams of cocaine. Additionally, according to the complaint, Alvarez was found with approximately 54.4 grams of p-Fluorofentanyl and 27.781 grams of methamphetamine HCL during a traffic stop on May 29, 2024. Alvarez has been charged with possession with intent to distribute fentanyl, methamphetamine, and cocaine, on February 5, 2024.

In sum, if convicted, the defendants face the following charges:

Defendant

Charges

Maximum Statutory Penalties

Miguel Geronimo

Possession with intent to distribute fentanyl

(21 U.S.C. 841(a)(1) and (b)(1)(C))

20 years of imprisonment; maximum lifetime of supervised release (minimum term of 3 years of supervised release); $1 million fine

Jesus Nunez Martinez

Possession with intent to distribute 5 grams or more of actual methamphetamine

(February 9, 2024)

(21 U.S.C. § 841(a)(1), (b)(1)(B))

40 years of imprisonment (mandatory minimum of 5 years of imprisonment);

maximum lifetime supervised release (mandatory minimum of 4 years of supervised release); $5 million fine

Possession with intent to distribute fentanyl and carfentanil

(March 29, 2024)

21 U.S.C. § 841(a)(1), (b)(1)(C)

20 years imprisonment; maximum lifetime of supervised release (minimum term of 3 years of supervised release); $1 million fine

Oscar Angel Alvarez

Possession with intent to distribute 40 grams or more of fentanyl

(21 U.S.C. § 841(a)(1), (b)(1)(B)(vi))

40 years of imprisonment (mandatory minimum of 5 years of imprisonment); maximum lifetime of supervised release (mandatory  minimum 4 years of supervised release); $5,000,000 fine

Possession with intent to distribute 5 grams or more of actual methamphetamine

(21 U.S.C. § 841(a)(1), (b)(1)(B)(viii))

40 years of imprisonment (mandatory minimum of 5 years of imprisonment); maximum lifetime of supervised release (mandatory  minimum 4 years of supervised release); $5,000,000 fine

Possession with intent to distribute cocaine

(21 U.S.C. § 841(a)(1), (b)(1)(C))

20 years of imprisonment; maximum lifetime of supervised release (mandatory minimum of 3 years of supervised release); $1,000,000 fine

A criminal complaint merely alleges a crime has been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The three criminal complaints were filed by the U.S. Attorney in partnership with the DEA and based on the invaluable work of the Santa Cruz County Sheriff’s Office. The complaints were unsealed in conjunction with proactive law enforcement action by the DEA, Santa Cruz County Sheriff’s Office, and other federal and local partners to address the growing use of fentanyl in Santa Cruz County. On July 11, 2024, federal and local law enforcement collaborated in a joint street enforcement operation focusing on the open-air fentanyl markets in the Santa Cruz area. This enforcement activity resulted in the seizure of fentanyl, a ghost gun, ammunition, and multiple arrests by state authorities of persons possessing drugs for sale.

Martinez made his initial federal court appearance to face the charges on July 15, 2024, before the Hon. Virginia K. DeMarchi, United States Magistrate Judge for the Northern District of California. Martinez was temporarily ordered detained, and a detention hearing in his case is set for July 19, 2024, at 1:00 p.m. at the United States District Court in San Jose. Neither Alvarez nor Geronimo have made their initial appearances on the above-listed federal charges.

Assistant U.S. Attorneys Johnny E. James, Jr., Jeffrey A. Backhus, and Sarah Griswold are prosecuting the cases with assistance from Elise Etter, Susan Kreider, and Lynette Dixon. These prosecutions are the result investigations by the Santa Cruz County Sheriff’s Office and the DEA, with operational assistance from the Federal Bureau of Investigation and the Santa Cruz Police Department. The U.S. Attorney’s Office thanks the Office of the Santa Cruz County District Attorney for its cooperation in bringing the federal prosecutions of these defendants.

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Former Hospitality Executive Sentenced to More Than Five Years in Prison for Multiple Fraud Schemes

Source: US FBI

Defendant Geoffrey Palermo Bilked Owners of a Hilton Hotel Out of More Than $1.5 Million As Part of Kickback Scheme, Fraudulently Obtained SBA and PPP Loans for His Car Repair Shop Business, and Failed to Pay Over Taxes Withheld from Employee Paychecks

SAN FRANCISCO – Geoffrey Palermo, a former hospitality executive who went on to operate numerous auto repair shops in the Bay Area, was sentenced to 65 months in prison, following his conviction on wire fraud, failing to pay over taxes, and other charges, announced First Assistant United States Attorney Patrick Robbins, Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp, and IRS Criminal Investigation Acting Special Agent in Charge Michael Mosley of the Oakland Field Office. The sentence was handed down by the Honorable James Donato, U.S. District Judge.

Palermo, 60, of Novato, Calif., pleaded guilty on March 11, 2024, to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; two counts of honest services wire fraud, in violation of 18 U.S.C. §§ 1343 and 1346; one count of wire fraud, in violation of 18 U.S.C. § 1343; one count of making a false statement to a bank, in violation of 18 U.S.C. § 1014; and one count of willful failure to collect or pay over tax, in violation of 26 U.S.C. § 7202. He had been charged in a Second Superseding Indictment in October 2021 with these charges.

During the relevant time, 2008 through 2016, Palermo was working as the manager of the Hilton hotel located in downtown San Francisco. During this timeframe, Palermo had authority to enter into contracts, choose contractors, and otherwise manage construction and capital improvement projects at the hotel.

According to his plea agreement, Palermo admitted he devised a kickback scheme involving contractors to deprive the Hilton hotel’s owners of more than $1.8 million in kickbacks that went to Palermo. As part of the scheme, Palermo agreed with one contractor, Adan Roldan, 56, of Roseville, Calif., that Roldan would submit falsely inflated invoices for construction and renovation work at the hotel, that Palermo would approve the false invoices, and that Roldan and the second contractor would pay a kickback to Palermo associated with the falsely inflated invoices. From 2013 through 2016, as a result of this scheme, Palermo approved—and the hotel’s owners paid—over $6.4 million to A. Roldan Construction based on invoices submitted by Roldan’s construction company. In exchange, Roldan paid more than $1.6 million in kickbacks to Palermo. Additionally, in 2014 and 2015, Palermo approved—and the hotel’s owners paid—over $2 million to a second contractor based on falsely inflated invoices submitted by that contractor, and the contractor paid Palermo over $300,000 in kickbacks. In exchange for kickbacks, Palermo continued to hire Roldan and the second contractor to do work at the Hilton.

According to Palermo’s plea agreement, after leaving his job as a manager at the Hilton San Francisco in 2016, Palermo managed GMP Cars, LLC, a collision and auto repair business he owned and controlled. Beginning in approximately August 2019 and continuing through December 2019, Palermo devised and participated in a scheme to obtain approximately $5 million in Small Business Administration (SBA) loans for GMP Cars from a commercial lender by making false statements and omissions in loan applications. Specifically, when applying for SBA loans, GMP Cars failed to disclose that its business banking account was overdrawn by more than $700,000, presented false bank statements showing inflated cash balances, submitted an incomplete debt schedule, submitted false financial statements showing inflated revenue, and presented falsified documents relating to an acquisition.

Furthermore, according to the plea agreement, on April 3, 2020, Palermo caused GMP Cars to make false statements in its application for a Paycheck Protection Program (“PPP”) loan. Specifically, Palermo caused GMP Cars to falsely certify on its loan application that it had employees for whom it paid salaries and payroll taxes, and Palermo caused GMP Cars to submit a purported payroll summary showing that payroll taxes were being accrued and paid when in fact Palermo had caused GMP Cars to not pay payroll taxes.

Also as part of his plea agreement, Palermo admitted that as the owner and manager of GMP Cars he had a duty to collect, account for, and pay over employee federal income tax, Social Security tax, and Medicare tax. Palermo admitted that in 2018 he caused GMP Cars to withhold federal income tax, Social Security tax, and Medicare tax totaling more than $1 million. Palermo willfully caused GMP Cars to fail to pay over to the IRS more than $1 million in federal taxes withheld from employee paychecks owed to the IRS for 2018.

A federal grand jury issued a second superseding indictment against Palermo and Roldan on October 5, 2021. Palermo and Roldan were charged with one count of wire fraud conspiracy, in violation of 18 U.S.C. § 1349. Palermo was charged with two counts of wire fraud and honest services wire fraud, in violation of 18 U.S.C. §§ 1343 and 1346; one count of wire fraud, in violation of 18 U.S.C. § 1343; one count of making a false statement to a bank, in violation of 18 U.S.C § 1014; and four counts of failure to collect or pay over taxes due and owed, in violation of 26 U.S.C § 7202. At Palermo’s sentencing, the three outstanding tax counts were dismissed pursuant to the plea agreement between Palermo and the United States, and the related case, United States v. Palermo, Case No. 21-cr-187 JD, was also dismissed.

Palermo has been detained since June 27, 2023.

In addition to the 65-month sentence, Judge Donato ordered Palermo to serve three years of supervised release, which will begin after he leaves prison. Judge Donato scheduled a hearing for August 19, 2024, to determine issues regarding restitution and forfeiture.

On March 11, 2024, Roland pleaded guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349. His sentencing hearing is scheduled for August 12, 2024.

Assistant U.S. Attorneys Christiaan Highsmith and Noah Stern are prosecuting the case with the assistance of Aarian Beti. The prosecution is the result of an investigation by the FBI and IRS-CI.

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Husband and Wife Sentenced for $65 Million TRICARE Fraud

Source: US FBI

NEWS RELEASE SUMMARY – January 25, 2024

SAN DIEGO – Jimmy and Ashley Collins, a married couple living in Birchwood, Tennessee, were sentenced in federal court today for orchestrating a health care fraud scheme that bilked TRICARE – the health care program that covers United States service members – out of more than $65 million.

Jimmy Collins received a 10-year prison sentence and was immediately taken into custody; Ashley Collins was sentenced to 18 months home confinement. The couple was ordered to pay $65,679,512.71 in restitution to Defense Health Agency and TRICARE.

The couple pleaded guilty in July 2023, admitting they worked with others to recruit sham TRICARE beneficiaries, mainly Marines from southern California who agreed to receive expensive, compounded medications in return for a kickback of approximately $300. Doctors and a nurse practitioner at Choice MD, a Tennessee medical clinic owned and operated by the Collinses, then wrote prescriptions for the sham TRICARE beneficiaries, despite never examining the patients.

Choice MD sent the prescriptions to The Medicine Shoppe, a small pharmacy in Bountiful, Utah, which filled the prescriptions and later received reimbursement from TRICARE.  At the peak of the conspiracy, The Medicine Shoppe billed TRICARE over $10,000 (and at times upwards of $20,000) per fraudulent compounded prescription. 

Between December 2014 and May 9, 2015 – the day TRICARE stopped reimbursing for compounded medications – the conspirators wrote thousands of fraudulent prescriptions amounting to $65,679,512 in fraudulent reimbursements.

The owners of The Medicine Shoppe then paid kickbacks to the Collinses based on a percentage of the TRICARE reimbursement. Between approximately February and July 2015, these kickback payments to the Collinses totaled at least $45.7 million dollars. The Collinses, in turn, kicked back a small percentage of that money (approximately 10 percent) to recruiters working as part of their network, including defendants Josh Morgan, Kyle Adams, and Daniel Castro.

Authorities seized numerous items and properties purchased by the Collinses and others with the proceeds of the fraud: an 82-foot yacht; multiple luxury vehicles, including two Aston Martins; a multimillion-dollar investment annuity; gold and silver bars; dozens of pieces of farm equipment and tractor-trailer trucks; and three pieces of Tennessee real estate.

The Collinses are the latest members of the conspiracy to be sentenced. The doctors who prescribed the compounded creams, and the corporate owner of the pharmacy that filled these prescriptions, were previously sentenced for their roles in the conspiracy to commit healthcare fraud. The patient recruiters and the nurse practitioner who facilitated the conspiracy await sentencing.

“Access to medical care is not a benefit for the service member, it’s a benefit to the rest of America to have a healthy and well cared for military force,” said U.S. Attorney Tara McGrath. “Today, defendants who defrauded millions of tax dollars intended for the care of our nation’s service members were held accountable for their crimes. Yachts and Aston Martins are a fantasy now, and prison is the reality.”

“Today’s sentencing demonstrates the commitment of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), and our law enforcement partners, to aggressively pursue illegal actions that pilfer taxpayer funds and degrade our military healthcare system,” said Acting Special Agent-in-Charge Gregory Shilling, DCIS Southwest Field Office.  “DCIS will continue to diligently investigate these schemes in order to protect our service members and their families.”

“TRICARE fraud is not a victimless crime; it is theft of taxpayer dollars that would be directly used in support of the health and readiness of our warfighters,” said Special Agent-in-Charge Greg Gross of the NCIS Economic Crimes Field Office, “Today’s sentencing demonstrates NCIS’ and our law enforcement partners’ dedication to ensure the integrity of our government programs for the sake of the U.S. military and taxpaying public.”

DEFENDANTS                                 Case Number: 18-CR-0432-JLS

Jimmy Collins                                     Age: 59                       Birchwood, TN

Ashley Collins                                    Age: 37                       Birchwood, TN

SUMMARY OF CHARGES

Jimmy Collins:

Receipt of Illegal Remuneration, in violation of 42 U.S.C. §1320(a)-7b(b)(1)(A)

Maximum penalty: Ten years in prison and $100,000 fine or double loss amount, whichever is greater

An order of restitution requiring defendant to repay at least $65,679,512.71 to DHA/TRICARE

Ashley Collins:

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

Maximum penalty: Five years in prison and $250,000 fine or double loss amount, whichever is greater

An order of restitution requiring defendant to repay at least $65,679,512.71 to DHA/TRICARE

INVESTIGATING AGENCIES

Defense Criminal Investigative Service

Naval Criminal Investigative Service

IRS Criminal Investigation Division, Gulfport, MS

Federal Bureau of Investigation – Jackson, MS Field Office

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Alleged Drug Trafficker Wilder Emilio Sanchez Farfan Extradited From Colombia

Source: US FBI

NEWS RELEASE SUMMARY – January 26, 2024

SAN DIEGO – Wilder Emilio Sanchez Farfan, aka Gato, an Ecuadorian national and alleged drug trafficker, made his first appearance in federal court today following his extradition to the United States from Colombia yesterday.

At the hearing, Sanchez Farfan entered a not guilty plea. U.S. Magistrate Judge Barbara L. Major ordered him detained pending trial. The next hearing is scheduled for March 4, 2024, at 1:30 p.m. before U.S. District Judge Gonzalo P. Curiel.

On October 30, 2019, a federal grand jury in the Southern District of California returned an indictment charging Sanchez Farfan with participating in a transnational conspiracy to traffic substantial quantities of cocaine from Colombia, through Ecuador, and into the United States. Sanchez Farfan’s organization is alleged to have been a major source of supply for the Sinaloa Cartel and the New Generation Jalisco Cartel in Mexico.

Sanchez Farfan was apprehended by Colombian authorities at the request of the United States in February 2023 while traveling in Colombia.

“We thank Colombian and Ecuadorian law enforcement authorities for their significant assistance,” said U.S. Attorney Tara K. McGrath.

The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Judicial Attaché’s office at the U.S. Embassy in Bogota provided critical assistance in securing the arrest and extradition of Sanchez Farfan.

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

DEFENDANT                                               Case 19cr1610-GPC                        

Wilder Emilio Sanchez Farfan                       Age: 43                                   Ecuador

SUMMARY OF CHARGES

International Conspiracy to Distribute Controlled Substances– Title 18, U.S.C., Section 959, 960, and 963

Maximum penalty: Life in prison with a mandatory minimum of ten years in prison

INVESTIGATING AGENCIES

Drug Enforcement Administration

Federal Bureau of Investigation

Internal Revenue Service, Criminal Investigations

U.S. Marshals Service

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

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Imperial County Dentist Sentenced to More Than Three Years in Prison and Nearly $8.5 Million in Restitution for Medicare Fraud

Source: US FBI

NEWS RELEASE SUMMARY – January 26, 2024

SAN DIEGO – Imperial County dentist Javad Aghaloo was sentenced in federal court today to 37 months in prison for defrauding Medicare and then covering it up. His former billing manager, Melissa Rosas, was sentenced to three years of probation with one year of home confinement for obstructing Medicare’s efforts to audit Aghaloo’s dental offices by providing false information. 

The pair, along with others, conspired to commit health care fraud by billing Medicare for procedures that were not covered, not performed, or otherwise not necessary. Aghaloo pleaded guilty on October 2, 2023 to conspiracy to commit health care fraud; Rosas pleaded guilty on October 13, 2023 to obstructing a federal audit.

“Doctors should treat patients, not exploit them,” said U.S. Attorney Tara McGrath. “This office is committed to protecting vulnerable patients from doctors who take advantage of them, particularly when they do so with no regard for patient safety.”

U.S. District Judge Jinsook Ohta also ordered Aghaloo to forfeit more than $1 million in property purchased with money obtained from the fraud and pay restitution to Medicare in the amount of $8,476,466.23.

According to court records, Aghaloo and others recruited Medicare beneficiaries to get dental work done at one of Aghaloo’s two dental offices in Imperial County. To recruit Medicare patients, Aghaloo and his employees marketed their dental services as being covered by Medicare. Aghaloo and his employees knew this was untrue since Medicare does not cover dental services.

Once a Medicare beneficiary was in one of Aghaloo’s offices, Aghaloo and others performed some type of procedure (usually a tooth extraction) and submitted false claims to Medicare for the dental work using the person’s Medicare beneficiary number. Since tooth extractions are not covered by Medicare, Aghaloo’s offices submitted false claims for procedures like bone grafts that were never performed. 

Between March 1, 2016 and October 18, 2018, Aghaloo’s dental offices submitted more than 7,000 false claims totaling over $18 million to Medicare, for which Aghaloo’s offices received $8,476,466.23. 

To conceal the fraud, between April of 2017 and October of 2018, Rosas and Theresa Flores, Aghaloo’s office manager, submitted false documents to Noridian Healthcare Solutions, LLC., a Federal auditor for the Medicare program. Flores, who also pleaded guilty to obstructing an audit, is scheduled to be sentenced on Friday, March 8, 2024. 

This case is being prosecuted by Assistant U.S. Attorney Christopher Alexander. 

DEFENDANT                                               Case Numbers 23cr0616-JO; 23cr2127-JO 

Javad Aghaloo                                                 Age: 50                                   Indio, CA

Melissa Rosas                                                 Age: 42                                   Calexico, CA

SUMMARY OF CHARGES

Conspiracy to Commit Health Care Fraud, a felony, in violation of Title 18, United States Code, Section 371.

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

Obstructing a Federal Audit, a felony, in violation of Title 18, United States Code, Section 1516.

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

INVESTIGATING AGENCIES

Federal Bureau of Investigation

U.S. Department of Health and Human Services, Office of Inspector General

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Op-Ed by FBI San Diego Special Agent in Charge Stacey Moy: 2023 Year in Review

Source: US FBI

The following is a previously unpublished op-ed by FBI San Diego Special Agent in Charge Stacey Moy.

As we welcome the new year, it’s important to reflect on the previous year so that we can understand the best ways to move forward.

2023 was certainly challenging for many, especially with the ongoing Israel-Hamas conflict. Nationwide, and right here in San Diego, the FBI saw an increase in reports of threats against Jewish, Muslim, and Arab communities and institutions. I want our community to know that we take all potential threats seriously and we will continue to work closely with our law enforcement partners to determine the credibility of any threats, share information, and take appropriate investigative action.

I celebrate each of the more than 500 employees that work tirelessly to keep the citizens of Southern California and beyond safe. In 2023, members of our team were nationally recognized for their work on Operation Trojan Shield, an international, multi-year investigation that disrupted an international crime ring. We also seized nearly $41 million worth of forfeited assets last year alone. Our 24/7 Operations Center took more than 3,200 public phone calls and processed over 10,000 tips. More than 2,300 evidence submissions were processed, and our special agents successfully got nearly 430 pounds of drugs off the streets in 155 different incidents.

Partnerships remain at the core of what makes our work ever more impactful. We couldn’t be successful without the collaboration of our local, state, and federal partners. In the summer of 2023, members of the FBI team participated in Operation Cross Country alongside more than a dozen local partners to identify and locate victims of sex trafficking. During this operation, 15 victims—including two minors—were located and referred services. Four individuals suspected of human trafficking and/or the sexual exploitation of children were also arrested.

Of the 388 total arrests made by FBI San Diego, one of the most significant captures was that of Patrick Wei, a U.S. Navy sailor who is charged with espionage. Wei’s arrest demonstrated the FBI’s commitment to utilize the full scope of its law enforcement and U.S. Intelligence Community resources, amplifying its capabilities to combat the threats against our military from the government of China and to protect the United States’ most precious assets.

In this next year, the San Diego Field Office will continue to build on our successes from this past year. When I speak with local chiefs and sheriffs about the threats they’re tackling, violent crime is the No. 1 issue. Our goal as the FBI is not just to put people in cuffs, but to build cases that cut into the capabilities of criminal enterprises so that we put the worst of the worst behind bars, ultimately leading to safer communities.

We participated in 77 joint operations with our law enforcement partners throughout the year and made 170 indictments. One of those indictments was of Maksim Galochkin, an international cybercriminal who was charged in connection with Conti ransomware conspiracies. Investigating cybercrimes are a primary focus of the FBI. We remain committed to aggressively attacking these types of crimes and the criminals who perpetrate them.

I recognize that our threats are always evolving and expanding; therefore, our work is never done. In the past year, the FBI San Diego team successfully disrupted 97 threat actors from engaging in criminal activity and dismantled nine criminal organizations.

I also cannot omit the importance of our community partnerships. We have a constant footprint in the community and are always looking for ways that we can educate and raise awareness about the FBI within the San Diego community. One of our hallmark programs, the FBI Citizens Academy, graduated 29 participants in 2023. This is an annual program where we invite citizens to participate in a seven-week immersive experience to learn about the FBI. Experiences and opportunities to interact with the community in ways such as this are invaluable to strengthening our community partnerships.

In 2024, I look forward to more opportunities to partner not only with other law enforcement agencies, but also with our communities, so that we can continue to disrupt and dismantle violent crime in our neighborhoods.

As a native San Diegan, I’m extremely proud to serve in the community that raised me. Because of this, I take protecting this city and surrounding areas very seriously. In 2024, FBI San Diego will continue to deliver justice in an objective, unbiased way. Our goal is to do the right thing, in the right way, 100% of the time. I sincerely thank this community for supporting the FBI and I ask that you continue to support us in the new year and beyond.

Special Agent in Charge Stacey Moy
FBI San Diego

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Madera Man Convicted of Firearms Violations Three Months After Being Convicted in January 6 Capitol Breach Trial in Washington, D.C.

Source: US FBI

FRESNO, Calif. — Following a one-day trial in Fresno, Benjamin Martin, 46, of Madera, was convicted today of illegally possessing firearms and ammunition, U.S. Attorney Phillip A. Talbert announced.

According to evidence presented at trial and other court records, in September 2021, the FBI executed a search warrant at Martin’s residence in Madera and arrested him on charges filed by the U.S. Attorney’s Office for the District of Columbia for the breach of the U.S. Capitol that occurred on Jan. 6, 2021. During the search, the FBI found eight guns, including an AR-15 style assault rifle, multiple high-capacity magazines for the AR-15, and more than 500 rounds of ammunition. Martin was prohibited from possessing these items because of his prior domestic violence conviction, and resulting restraining order, for choking his then girlfriend and dragging her back into the house after she tried to flee.

Shortly after his arrest, Martin was caught on a recorded jail call where he instructed his then fiancée to lie to authorities and tell them that the firearms seized from his residence belonged to her and her father and that he did not know about them. She agreed to do so.

Martin also recently went to trial in the Capitol breach case in Washington, D.C., where the evidence showed that he held a door to the Capitol open while officers tried to close it. He kept the door open so that other rioters could spray chemical irritants and throw objects at the officers. Martin was convicted on all counts, which included two felonies for civil disorder and obstructing an official proceeding.

This case is the product of an investigation by the FBI. Assistant U.S. Attorneys Joseph Barton, Robert Veneman-Hughes, and Michael Tierney are prosecuting the case.

Martin is scheduled to be sentenced in the firearms case in Fresno on Nov. 25, 2024, by U.S. District Judge Jennifer L. Thurston. Martin faces up to 15 years in prison and a 250,000 fine for that case. He is scheduled to be sentenced in the Capitol breach case in Washington, D.C., on Nov. 15, 2024, by U.S. District Judge Rudolph Contreras. He faces additional imprisonment and fines in that case. The actual sentences, 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.

The press release for Martin’s conviction in the Capitol breach case can be found here: https://www.justice.gov/usao-dc/pr/california-man-convicted-felony-and-misdemeanor-charges-actions-during-jan-6-capitol

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Bakersfield Felon Charged in Connection with Destructive Device

Source: US FBI

FRESNO, Calif. — On Aug. 29, 2024, a federal grand jury returned a three-count indictment charging Robert Lawrence Hunt, 40, of Bakersfield, with being a felon in possession of a firearm, unlawful possession of an unregistered firearm, and manufacturing a firearm, U.S. Attorney Phillip A. Talbert announced.

According to court documents, in July 2022, Hunt possessed a destructive device that consisted of parts designed for conversion into an explosive and incendiary device containing screws, which meet the federal definition of a firearm. Hunt was previously convicted in Kern County Superior Court of two robberies and a burglary and is prohibited from possessing firearms.

This case is the product of an investigation by the Federal Bureau of Investigation with assistance from the Bakersfield Police Department. Assistant U.S. Attorney Karen Escobar is prosecuting the case.

If convicted of being a felon in possession of a firearm, Hunt faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. He faces up to 10 years in prison and a $250,000 if convicted of possessing an unregistered firearm and manufacturing a firearm. 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.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

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Project Safe Neighborhoods News for August 2024

Source: US FBI

SACRAMENTO, Calif. — The Project Safe Neighborhoods (PSN) initiative brings together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence. At the core of PSN is setting focused and strategic enforcement priorities that help prevent violence from occurring in the first place. U.S. Attorney Phillip A. Talbert announces the following actions in federal PSN cases.

Sophondara Hun, 28, of Stockton, was sentenced on Aug. 8, 2024, to three years and four months in prison for being a felon in possession of ammunition. According to court documents, law enforcement officers responded to a report of a prowler at an apartment complex. The caller advised there was a man inside her apartment and that he possibly entered through a window. When officers arrived, they saw an open window and observed Hun sleeping on a bed in the apartment. Officers arrested Hun and upon searching Hun, noticed a .22 caliber bullet on the ground in front of Hun’s leg. Two .22 caliber bullets were found in Hun’s pocket and an additional .22 caliber bullet on the ground. Hun is prohibited from possessing ammunition because he has multiple state felony convictions, including assault on a person with a firearm, assault with a deadly weapon with force–possible great bodily injury, vandalism, and evading law enforcement in a vehicle. This case was the product of an investigation by the Stockton Police Department and ATF, with assistance from the San Joaquin County District Attorney’s Office. Assistant U.S. Attorney Haddy Abouzeid prosecuted the case.

Ramon Garcia Jr., 32, of Vacaville, was sentenced on Aug. 22, 2024, to seven years in prison for being a felon in possession of a firearm. According to court documents, when law enforcement officers responded to a report of a domestic violence incident involving Garcia, he fled and eventually jumped over a barbed wire fence before being taken into custody. In Garcia’s vehicle, officers found a Glock 17, 9 mm handgun and an unloaded high-capacity, 31‑round Glock magazine hidden in the floorboard under the interior plastic molding on the passenger side. Garcia was on Post Release Community Supervision for a prior felony offense and is prohibited from possessing firearms because he has multiple state felony convictions, which include two prior domestic violence convictions. This case was the product of an investigation by the Vacaville Police Department and the Federal Bureau of Investigation, with assistance from the Solano County District Attorney’s Office. Assistant U.S. Attorney Haddy Abouzeid prosecuted the case.

Dexter Weeks, 35, of Galt, was sentenced on Aug. 27, 2024, to seven years in prison for being a felon in possession of a firearm. According to court documents, law enforcement conducted a parole search of Weeks’ residence, a known felon on parole. They found a loaded Glock 20, 10 mm semi-automatic pistol on the floor next to the bed in the master bedroom where officers located Weeks. The gun had previously been reported stolen. Weeks is prohibited from possessing firearms or ammunition because he has multiple state felony convictions. This case is the product of an investigation by the Sacramento Sheriff’s Office, the Federal Bureau of Investigation, and the FBI’s Safe Streets Task Force. Assistant U.S. Attorney Haddy Abouzeid prosecuted the case.

These cases are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.