Category: MIL-OSI

Source: US FBI

Defendant Allegedly Raised Over $40 Million While Misrepresenting Financial and Sales Information

Source: US FBI

NEWS RELEASE SUMMARY – March 11, 2024

SAN DIEGO – Anthony Duane Bell Sr. and his son, Anthony Duane Bell Jr., were sentenced in federal court today to 65 months and 12 months and one day, respectively, for their roles in fraudulently receiving more than $21 million in Medicare payments and lying to cover it up.  

The pair, along with others, conspired to commit Medicare fraud by billing for medically-unnecessary durable medical equipment such as knee, ankle, shoulder, wrist and back braces.  Bell Sr. pleaded guilty to Medicare fraud while Bell Jr. pleaded guilty to making false statements to a federal officer.

U.S. District Court Judge William Q. Hayes also ordered Bell Sr. to pay $21,725,604.56 in restitution to Medicare and forfeit $806,375.12 and a luxury house in El Cajon. The forfeited property was purchased using money obtained from the fraud. In arriving at the sentence, Judge Hayes found that Bell Sr. intended to defraud Medicare of over $46 million dollars and received over $21 million dollars. 

“This brazen scheme exploited elderly and disabled Medicare beneficiaries so these defendants could line their own pockets,” said U.S. Attorney Tara K. McGrath.  “Together with our law enforcement partners, this office will continue to vigorously investigate and prosecute fraud that diverts Medicare funds from some of our nation’s most vulnerable citizens.” 

“Those who game the system to take advantage of federal health care programs for personal financial gain do so at the expense of those who rely on these programs and American taxpayers,” said Special Agent in Charge Timothy B. DeFrancesca of the Department of Health and Human Services Office of the Inspector General (HHS-OIG). “Together with our law enforcement partners, HHS-OIG will continue working diligently to hold these individuals accountable.”

“The Bells using their business as a front to defraud the U.S. government and Medicare program is unacceptable,” said FBI San Diego Acting Special Agent in Charge Tom Ryan. “The FBI and its law enforcement partners will continue to dedicate their resources to make sure individuals who try to illegally profit from the U.S. government will be prosecuted.”

According to court records, the Bells created companies known as Universal Medical Solutions 1 and Universal Medical Solutions 2, which supplied durable medical equipment. In order to find customers for their businesses, the Bells entered into sham agreements with “marketing” companies that, instead of marketing, provided packets of information about Medicare beneficiaries for $125 to $350 each. These packets of information included a Medicare beneficiary’s personal information, medical history, Medicare number, and an audio recording between a call center and the patient, in which the patient supposedly agreed to accept a brace. The packet also included a signed prescription from a doctor, obtained via telemedicine, claiming that the brace was medically necessary for the patient – although in almost all cases the prescription was signed by a physician who had no previous doctor-patient relationship with the patient, was often in another state, and at most had conducted an audio call with the patient. In all cases the doctor had not conducted any kind of physical examination of the patient.

The Bells bought thousands of these patient packets, each time indirectly paying the telemedicine doctors through the “marketing” companies. The packets were referred to in the industry as “Doctor’s Orders” or “D.O.s.” The Bells purchased the “D.O.s” for a variety of braces, paying the most (up to $350) for a back brace prescription, the type of medical equipment for which Medicare offered the highest reimbursement. The Bells could then, after shipping the brace to the patient, bill Medicare around $1,359.89 for each back brace, through their companies. The Bells also bought other braces, including wrist, knee, and shoulder braces, and billed Medicare at much higher prices than they paid for them.

When Bell Jr. was interviewed by the FBI, he lied about his knowledge of the scheme.

The case is being prosecuted by Assistant U.S. Attorneys Valerie H. Chu and Christopher M. Alexander of the Southern District of California. 

DEFENDANTS                                             Criminal Case No. 20CR2887-WQ                                             

Anthony Duane Bell Sr.                                 Age: 55                       El Cajon, California

Anthony Duane Bell Jr.                                  Age: 33                       El Cajon, California

SUMMARY OF CHARGE

Health Care Fraud, a felony, in violation of Title 18, United States Code, Section 1347.

Maximum Penalty:  Ten years in custody; a fine of $250,000; a mandatory special assessment of $100; an order of restitution; and a three-year term of supervised release. 

False Statement, a felony, in violation of Title 18, United States Code, Section 1001.

Maximum Penalty:  Five years in custody; a fine of $250,000; a mandatory special assessment of $100; an order of restitution; and a three-year term of supervised release. 

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Department of Health and Human Services, Office of Inspector General

United States Marshal’s Service

Source: US FBI

NEWS RELEASE SUMMARY – March 1, 2024

SAN DIEGO – Charles Ronald Green Jr. and his wife, Melinda Elizabeth Green, were sentenced in federal court today to 27 months each for fraudulently billing government healthcare programs more than $125 million for medically unnecessary treatments.

According to court filings, the Greens engaged in a scheme to defraud two major federal health care programs: TRICARE, the medical benefits program for military servicemembers and their families, and Medicare, the program that provides benefits to elderly or disabled Americans. 

Chief U.S. District Judge Dana M. Sabraw also ordered $4.5 million in restitution to TRICARE and $69,915,909.69 to Medicare.

Between May 12, 2014, and June 29, 2015, the Greens conspired to submit false and fraudulent claims to TRICARE for expensive and medically unnecessary pain creams, scar creams and multi-vitamins (collectively, “compounded medications”), which were billed through various pharmacies. During this period, the Greens owned or were officers of several companies they used in furtherance of their scheme. The pharmacies paid these companies millions of dollars in illegal kickbacks and other remuneration in exchange for the referral of the false and fraudulent prescriptions for compounded medications to TRICARE beneficiaries.

In turn, the Greens and others paid a portion of their profits as kickbacks to so-called “marketing” organizations in exchange for more prescriptions for compounded medications. TRICARE and other payers often reimbursed compounding pharmacies thousands of dollars for a 30-day supply of a compounded pain or scar cream for one beneficiary. In just one example, on May 8, 2015, a false and fraudulent claim was submitted to TRICARE in the amount of $14,178 for Baclofen Powder.

In furtherance of the compounding fraud scheme, the Greens and others developed compounded medication formulations for the primary purpose of inflating the amount of money TRICARE would reimburse, and to correspondingly increase the amount of kickbacks and remuneration that affiliated marketers would receive.

The Greens’ knowing participation in the compounding fraud scheme resulted in the submission of false and fraudulent claims by one pharmacy in the approximate amount of $8,107,816, of which TRICARE paid at least $6,776,222.

Between June 1, 2018, and April 2019, the Greens also conspired to defraud Medicare by submitting false and fraudulent claims for expensive durable medical equipment, or “DME,” similarly induced through a system of illegal kickbacks.  The Greens and others executed the DME fraud scheme by purchasing “completed doctors’ orders” from various “marketers” for Medicare beneficiaries, which included a prescription signed by a doctor certifying the beneficiary received an exam that met Medicare’s requirements and that the DME was medically necessary.

In an attempt to disguise the DME fraud scheme from detection, the Greens and their co-conspirators entered into sham “marketing” and other contracts that concealed the pay-per-order arrangement. For example, on March 14, 2019, Charles Ronald Green prepared and submitted an invoice from the Greens’ company, NHS Pharma, concealing that NHS Pharma was being paid a per-brace kickback for selling completed doctors’ orders, but claimed instead to be charging for a $35,000 “TV Campaign,” a quantity of 716 website “Landing Pages,” and $6,928.71 for processing hours.

In addition to purchasing doctors’ orders in furtherance of making false and fraudulent claims on behalf of DME companies they owned or controlled, in some instances the Greens brokered the doctors’ orders by re-selling them at a markup to other DME companies.

“Fraud schemes like this one drive up health care costs for everyone,” said U.S. Attorney Tara McGrath. “We will continue to investigate and bring to justice those who scam taxpayers and place their own financial interests ahead of patient care. Diverting resources from service members and the elderly is especially heinous.”

“The Greens’ greed cost American taxpayers tens of millions of dollars by defrauding federal healthcare programs, including the Department of Defense’s TRICARE program,” 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 conspire to defraud TRICARE, because those deceptive actions ultimately harm those defending our country and their families.”

“It is disheartening when people like the Greens go to great lengths to plan elaborate schemes that ultimately have negative effects on innocent citizens,” said FBI San Diego Special Agent in Charge Stacey Moy. “The FBI and its law enforcement partners will ensure that those who defraud the United States Government will be thoroughly investigated and prosecuted for their actions.”

The Court set a hearing for May 24, 2024, to resolve additional claims for restitution.

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

DEFENDANTS                                             Case Number 20cr1566-DMS                          

Melinda Elizabeth Green                                            Age: 63                                   Windermere, FL

Charles Ronald Green, Jr.                                           Age: 67                                   Windermere, FL

SUMMARY OF CHARGES

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

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

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

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

INVESTIGATING AGENCIES

Federal Bureau of Investigation

Health and Human Services Office of the Inspector General

Department of Defense Office of the Inspector General

Source: US FBI

NEWS RELEASE SUMMARY – March 5, 2024

SAN DIEGO – A superseding indictment was partially unsealed in the Southern District of California today charging Benjamin Madrigal-Birrueta, an alleged drug trafficker, with murdering two people to prevent them from testifying in drug trafficking prosecutions that were pending in federal court in San Diego.

The victims were identified as Cesar Armando Murillo, 44, and Maira Sofia Hernandez, 33, residents of Yakima, Washington. Court filings indicate Hernandez was six-months pregnant when she was killed, and the superseding indictment includes a separate count charging Madrigal-Birrueta with the death of her in utero child.

“These executions were an assault on our justice system, designed to silence witnesses and instill fear,” said U.S. Attorney Tara McGrath. “The obligation to protect witnesses is paramount and the United States will fully prosecute intimidation and violence designed to interfere with the justice system.”

“The cartels and drug trafficking organizations have reached beyond our borders, bringing their criminality to every city and small town in our interior,” said Special Agent in Charge Robert Hammer, who oversees HSI operations in the Pacific Northwest. “The murder of witnesses is an afront to our rule of law but HSI, along with our law enforcement partners, have the resources to uncover these horrible crimes and the dedication to dismantle the organizations harming our population, wherever they may be located.”

“HSI continues to tirelessly investigate criminal organizations who traffic dangerous drugs across our border and into the interior of the United States. In this pursuit we will ensure that anyone who is responsible for causing harm to a witness in one of our investigations is held accountable for these actions,” said HSI San Diego SAC Chad Plantz. “Fear or harm caused to those who report a crime or testify diminishes the public’s trust in the criminal justice system and erodes the foundation of the rule of law. HSI and its partners are committed to ensuring that anyone who tampers with witnesses or breaks the laws in place to protect them are brought to justice.”

The superseding indictment also charges Ricardo Orizaba with being an accessory after the fact to murder. Court filings indicate both victims were buried in a remote high-desert location near Yakima and that these charges follow a year-long search culminating in the discovery of their remains in September 2023. Hernandez is survived by her three minor children and Murillo is survived by two minor children.

The superseding indictment alleges Defendant Madrigal-Birrueta was a leader in a criminal enterprise that committed a series of felony violations of federal drug laws. According to court filings, the investigation originated with the seizure of drugs from vehicles using San Diego area ports of entry between August and October of 2021. The organization used late model stolen vehicles to smuggle drugs.  The superseding indictment alleges that Madrigal-Birrueta is responsible for the importation of those drugs.

According to court filings, by August of 2022, the investigation led agents to a group of individuals operating out of Yakima. Special Agents with Homeland Security Investigations interviewed Murillo and Hernandez, and within days of those interviews, Murillo and Hernandez were murdered and their bodies were buried in the high desert. Court filings describe how these charges follow an exhaustive, year-long investigation that employed geophysicists, ground penetrating radar, aircraft, laser imaging, chemical testing of the soil, numerous cadaver dogs, and other law enforcement techniques to search for the victims’ remains. HSI Special Agents successfully recovered the remains on September 13, 2023, aided by a Washington State Police Crime Scene Investigations team.

Special Agents with Homeland Security Investigations working with Washington State Police to exhume remains on September 13, 2023.

Court filings further indicate that, based on autopsy reports, both victims died of multiple gunshot wounds to the head. 

During the investigation agents seized methamphetamine, cocaine, fentanyl, multiple firearms — including a machine gun — and body armor from Madrigal-Birrueta’s drug trafficking organization.  In addition to the homicides, the superseding indictment charges Madrigal-Birrueta with possessing a machine gun in furtherance of a drug trafficking crime.

Federal courts in California and Washington state have ordered that Madrigal-Birrueta and Orizaba be detained pending trial, and both are in custody.

Weapons seized during the investigation on September 8, 2022.

This case is being prosecuted by Assistant U.S. Attorneys Stephen H. Wong and Alicia P. Williams.

DEFENDANTS                                             Case Number 23cr1684-RBM                                      

Benjamin Madrigal-Birrueta                                      Age: 22                                   Yakima, WA

Ricardo Orizaba                                                          Age: 21                                   Yakima, WA

SUMMARY OF CHARGES

Count 1:

Continuing Criminal Enterprise – Title 21, United States Code, Sections 848(a) and (b)(2)

Maximum penalty: Mandatory minimum twenty years and up to life in prison, $2 million fine

Count 2:

Conspiracy to Distribute Controlled Substances – Title 21, United States Code, Sections 841 and 846

Maximum penalty: Mandatory minimum ten years and up to life in prison, $2 million fine

Count 3:

Conspiracy to Import Controlled Substances – Title 21, United States Code, Sections 952, 960 and 963

Maximum penalty: Mandatory minimum ten years and up to life in prison, $2 million fine

Count 4:

Murder of Cesar Armando Murillo in Furtherance of a Drug Trafficking Conspiracy – Title 21, United States Code, Section 848(e)

Maximum penalty: Mandatory minimum sentence of twenty years and up to life, or death

Count 5:

Murder of Maira Sophia Hernandez in Furtherance of a Drug Trafficking Conspiracy – Title 21, United States Code, Section 848(e)

Maximum penalty: Mandatory minimum twenty years and up to life, or death

Count 6:

Conspiracy to Commit Witness Tampering: First Degree Murder – Title 18, United States Code, Sections 1512(a)(1)(A), (c), (2)(A), (3)(A), (c), (k), and 1111

Maximum penalty: Mandatory minimum term of life in prison or death, $250,000 fine

Count 7:

Witness Tampering: First Degree Murder of Cesar Armando Murillo – Title 18, United States Code, Sections 1512(a)(1)(A), (c), (3)(A), (c), (3)(A), and 1111

Maximum penalty: Mandatory minimum term of life in prison or death, $250,000 fine

Count 8:

Witness Tampering: First Degree Murder of Maira Sophia Hernandez – Title 18, United States Code, Sections 1512(a)(1)(A), (c), (3)(A), (c), (3)(A), and 1111

Maximum penalty: Mandatory minimum life in prison or death, $250,000 fine

Count 9:

Causing the Death of a Child in Utero – Title 18, United States Code, Sections 1841 and 1111.

Maximum penalty: Mandatory minimum life in prison or death, $250,000 fine

Count 10:

Witness Tampering: Threat of Force – Title 18, United States Code, Sections 1512(a)(2)(A), (C), (3)(A), and 1111

Maximum penalty: Up to twenty years in prison, $250,000 fine

Count 11:

Accessory After the Fact to Murder – Title 18 United States Code, Sections 3 and 1512(a)(1)(A) and Title 21, United States Code, Section 848(e), $250,000 fine

Count 12:

Possession, Brandishing, and Discharge of a Firearm in Furtherance of a Drug Trafficking Crime and a Crime of Violence – Title 18, United States Code, Sections 924(c)(1)(A)(iii) and 2, $250,000 fine

Count 13:

Possession and Brandishing of a Firearm in Furtherance of a Drug Trafficking Crime and a Crime of Violence – Title 18, United States Code, Sections 924(c)(1)(A)(iii) and 2, $250,000 fine

Count 14:

Possession, Brandishing, and Discharge of a Firearm in Furtherance of a Drug Trafficking Crime and a Crime of Violence – Title 18, United States Code, Sections 924(c)(1)(A)(iii) and 2, $250,000 fine

Count 15:

Possession of a Firearm in Furtherance of a Drug Trafficking Crime – Title 18, United States Code, Sections 924(c)(1)(A)(iii) and 2, $250,000 fine

Count 16:

Possession of a Machine Gun in Furtherance of a Drug Trafficking Crime – Title 18, United States Code, Sections 924(c)(1)(A)(i), (B)(ii), and 2 and Title 26, United States Code, Section 5845(b), $250,000 fine

Count 17:

Conspiracy to Commit Money Laundering – Title 18, United States Code, Section 1956(a)(1)(A)(i) and (h), $250,000 fine

AGENCIES

Homeland Security Investigations

Drug Enforcement Administration

Federal Bureau of Investigation

Bureau of Alcohol, Tobacco, Firearms and Explosives

Washington State Police

California Highway Patrol

Yakima Police Department

Tulare County Sheriff’s Office

Visalia Police Department

Fresno Sheriff’s Office

Fresno 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.

Source: US FBI

NEWS RELEASE SUMMARY – February 23, 2024

SAN DIEGO – David Constantin, alleged mastermind of a scheme to steal more than $5 million in California unemployment benefits intended to help workers affected by the pandemic, appeared in federal court today following his extradition Monday to the United States from Romania.

At today’s hearing, U.S. Magistrate Judge Michael S. Berg ordered Constantin detained pending trial. The next hearing is scheduled for April 1, 2024, at 1:30 p.m. before U.S. District Judge Larry A. Burns.

Constantin was indicted by a federal grand jury in October 2023 along with 13 others. In addition to the four counts of wire fraud conspiracy and wire fraud charges, the indictment also alleges that Constantin transmitted more than $128,000 in fraud proceeds to associates in Romania.

Constantin was apprehended by Romanian authorities at the request of the United States on November 14, 2023. The United States also seized valuable assets connected to Constantin, and co-Defendants in this case, Eduard Buse (D6), and Florentina Sima (D7).

The following agencies provided critical assistance in securing Constantin’s arrest and extradition: Directorate for Combating Organized Crime (DCCO) – Service for Countering of Organized Criminal Groups; Pitești Brigade for Combating Organized Crime (BCCO Pitesti); Teleorman County Service for Countering Organized Crime; Romanian Gendarmerie Battalion; Romanian Ministry of Justice; and Romanian Criminal Investigative Directorate – Fugitive Unit.

“We thank Romanian authorities for their assistance in securing Mr. Constantin’s arrest and for their continued efforts in support of this case.”, said U.S. Attorney Tara McGrath.

This case is being prosecuted by Assistant U.S. Attorneys Jessica Adeline Schulberg and Valerie Chu. The Justice Department’s Office of International Affairs provided substantial assistance to secure the arrest and extradition from Romania of Constantin.

DEFENDANT                                               Case Number 23CR2090-LAB                                

David Constantin                                            Age: 28                                   Arges County, Romania

aka Vlad Alexandru

SUMMARY OF CHARGES

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

Title 18, U.S.C. § 1343 — Wire Fraud

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

Title 18 U.S.C. § 1956(a)(2)(A) — Laundering of Monetary Instruments

Maximum penalty: Twenty years in prison and $500,000 fine or twice the value of the monetary instrument or funds involved in the transportation, transmission, or transfer, whichever is greater

INVESTIGATING AGENCIES

Federal Bureau of Investigation

San Diego Police Department Economic Crimes Unit

IRS Criminal Investigation

California Employment Development Department Investigative Division

U.S. Department of Labor Office of Inspector General

U.S. Department of Homeland Security

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

Source: US FBI

SAN DIEGO – Three members of a massive conspiracy to bilk the military’s healthcare program known as TRICARE out of more than $65 million have been sentenced in federal court.

Former U.S. Marines, Daniel Castro and Jeremy Syto, were sentenced to 21 months and 15 months, respectively; Nurse Practitioner Candace Craven was sentenced to serve three months in home confinement. Castro and Syto recruited fellow Marines to receive expensive compounded drugs; Craven and others wrote bogus prescriptions and filled out fraudulent paperwork to process the insurance reimbursements. All told, tens of millions of dollars in false claims were submitted; everyone got kickbacks.

All of the defendants were working for Jimmy and Ashley Collins, a married couple living in Birchwood, Tennessee, who quarterbacked the scheme. Two weeks ago, Jimmy Collins received a 10-year prison sentence; Ashley Collins was sentenced to 18 months in home confinement. To account for all the fraud, the couple was ordered to pay $65,679,512.71 in restitution to Defense Health Agency and TRICARE.

According to plea agreements, the Marines who Castro and Syto recruited agreed to receive the pricey compounded medications in return for a monthly kickback of approximately $300. For young Marines-turned-straw-beneficiaries, this money significantly augmented their monthly paycheck. One defendant noted “it took very little work to sign people up to receive free money.”

For recruiting bogus patients, Castro and Syto were paid a commission—somewhere between 3 to7 percent of the total TRICARE reimbursement paid to the pharmacy for the drugs sent to their recruits. By the time this fraud scheme was in full swing, the average cost for these compounded drugs was more than $13,000 for a 30-day supply, peaking at around $25,000 for certain individual drugs.  Over the course of the conspiracy, the illegal kickbacks amounted to at least $1,013,450.36 for Castro and $264,000 for Syto. 

In total, TRICARE paid at least $11,949,710.15 in insurance reimbursements for compounded medications prescribed to straw beneficiaries directly recruited by Castro. During the same period, TRICARE paid at least $8,620,215.83 for compounded medications prescribed to straw beneficiaries directly recruited by Syto.

Nurse Practitioner Craven admitted that her primary role was to write and process fraudulent prescriptions and fill out other fraudulent paperwork for compounded drugs for the straw beneficiaries.

According to the pleadings, the sharp increase in the number of bogus prescriptions for compounded drugs was the result of multiple fraud schemes, including this one, that popped up around the country. As a result, the TRICARE program faced a $2 billion explosion in liability for compounded prescription drugs.

“This outrageous scheme undermined health services for those who risk their lives to serve our country,” said U.S. Attorney Tara McGrath. “Our military members and taxpayers deserve so much better. This case reflects our dedication to the well-being of our armed forces and our steadfast protection of the U.S. taxpayer.”

During the course of the investigation, 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.

This case was prosecuted by Assistant U.S. Attorney Mark W. Pletcher.

DEFENDANTS                                 Case Number: 18-CR-0432-JLS

Daniel Castro                                      Age: 36                       Oak Lawn, IL

Jeremy Syto                                        Age: 30                       Chula Vista, CA

DEFENDANTS                                 Case Number: 18-CR-4209-JLS

Candace Michelle Craven                   Age: 57                       Apison, TN                            

SUMMARY OF CHARGES

Daniel Castro:

Conspiracy, in violation of 18 U.S.C. § 1349, 1347

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

An order of restitution requiring defendant to repay at least $11,949,710.15 to DHA/TRICARE

Jeremy Syto:

Conspiracy, in violation of 18 U.S.C. § 1349, 1347

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

An order of restitution requiring defendant to repay at least $8,620,215.83 to DHA/TRICARE

Candace Craven:

Conspiracy, in violation of 18 U.S.C. § 1349, 1347

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

An order of restitution requiring defendant to repay at least $32,750.00 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

Source: US FBI

SACRAMENTO, Calif. — Fidel Andrade, 36, of Stockton, pleaded guilty today to conspiring to possess and distribute cocaine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between January and October 2020, Andrade, who then worked as a correctional officer, supplied cocaine to his co-defendant Neftali Castillo Montes. Montes then sold over 9 ounces of cocaine to an FBI confidential source. On March 3, 2021, officers discovered an additional ounce of cocaine during a search warrant executed at Andrade’s house.

Andrade is scheduled to be sentenced on Jan. 14, 2025, by U.S. District Judge Kimberly J. Mueller. Montes pleaded guilty for his role in this conspiracy on July 15, 2024, and is scheduled to be sentenced on Jan. 28, 2025. Both defendants face a maximum statutory penalty of 20 years on prison for their roles in this conspiracy. Montes is separately charged in another indictment involving a methamphetamine trafficking conspiracy. 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.

This case is the product of an investigation by the California Department of Corrections and Rehabilitation, the U.S. Customs and Borders Protection, the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, and the Tracy Police Department. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. For more information about Organized Crime Drug Enforcement Task Forces, please visit Justice.gov/OCDETF. 

Source: US FBI

SACRAMENTO, Calif. — Michael Andrew Scott, 38, of Fair Oaks, pleaded guilty today to wire fraud, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between June 2018 and June 2022, Scott devised a scheme to defraud investors in his company, Trusted Medical Partnership. Scott told investors that either he or Trusted Medical Partnership received purchase orders from various health care providers for medical devices but lacked the capital to fulfill the orders. Scott solicited and obtained loans from these investors, and, in exchange, promised them substantial returns in a relatively short time with zero risk.

In reality, Scott’s representations to these prospective investors were false because Scott did not have purchase orders from health care providers. To some of his victims, Scott sent purchase orders that he had doctored or fabricated in order to convince them to lend money. The health care providers listed on these purported purchase orders confirmed that the orders were fake altogether or altered to reflect inflated amounts or other false information. Further, Trusted Medical Partnership was not a legitimate business – while incorporated in the State of California, it conducted no legitimate business transactions, paid no taxes, submitted no wage or employment-related records, and had been suspended in December 2021, before Scott solicited investments on its behalf from some of his victims.

Scott’s victims lent him money on the basis of his false statements, including the fraudulent purchase orders, but received little to no returns on their investments. Instead, Scott spent the money on gambling at several local casinos (sometimes the same day he received the victims’ money), personal expenses, or payments to other, prior investors in order to keep the scheme running. Collectively, Scott defrauded more than 10 victims of between $250,000 and $550,000.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Dhruv M. Sharma is prosecuting the case.

Scott is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Jan. 14, 2025. Scott faces a maximum statutory penalty of 20 years in prison and a fine of $250,00, or twice the gross gain or gross loss, whichever is greater. In addition to pleading guilty, Scott agreed to pay restitution to his victims of between $338,843 and $550,000. 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

FRESNO, Calif. — Bryan M. Williams, 41, of Atascadero, pleaded guilty today to bank fraud, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between 2013 and 2019, Williams served as the treasurer of a Kern County political organization. During that time period, he stole between $230,000 and $435,000 from the organization, and used those funds for his personal use.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.

Williams is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Jan. 27, 2025. Williams faces a maximum statutory penalty of 30 years in prison and a $1 million 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

SACRAMENTO, Calif. — Three co-defendants, Martin Cervantes Vasquez, 49, of Stockton; Alberto Gonzalez Salgado, 45, of Sacramento; and Isaiah Alberto Salgado, 25, of Sacramento, pleaded guilty today to various drug trafficking and illegal weapons possession charges, U.S. Attorney Phillip A. Talbert announced.

Cervantes and Alberto Salgado pleaded guilty to a fentanyl pill trafficking conspiracy. Cervantes also pleaded guilty to possession with intent to distribute methamphetamine, and Alberto Salgado also pleaded guilty to two counts of heroin distribution, to cultivating more than 100 marijuana plants, and to possession of a firearm in furtherance of a drug trafficking crime. Isaiah Salgado pleaded guilty to possession of an unregistered short-barreled rifle.

According to court documents, Alberto Salgado sold heroin and fentanyl-laced counterfeit oxycodone pills to a confidential source on multiple occasions in 2019 and 2020. Cervantes supplied fentanyl-laced counterfeit oxycodone pills to Alberto Salgado and also possessed more than a kilogram of heroin and 500 grams of methamphetamine on the day of his arrest on Oct. 8, 2020. Alberto and Isaiah Salgado sold an illegal short-barreled rifle to the same confidential source in August 2020. Alberto Salgado also maintained a stash house in Sacramento where he grew more than 100 marijuana plants and also kept a firearm to protect his drug trafficking operation.

This case is the product of an investigation by the Drug Enforcement Administration, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation; Homeland Security Investigations; the Sacramento Area Intelligence/Narcotics Task Force; and the California Highway Patrol. Assistant U.S. Attorney David W. Spencer is prosecuting the case.

Cervantes is scheduled to be sentenced on Jan. 23, 2025, Alberto Salgado on Feb. 13, 2025, and Isaiah Salgado on Jan. 9, 2025, by U.S. District Judge Daniel J. Calabretta. Cervantes and Alberto Salgado face a maximum statutory penalty of life in prison. Isaiah Salgado faces a maximum statutory penalty of 10 years in prison. 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.

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