Category: MIL-OSI

Source: US FBI

SAN DIEGO – Former U.S. Border Patrol Agent Hector Hernandez, who admitted that he took bribes to smuggle methamphetamine and people across the U.S.-Mexico border while on duty, was sentenced in federal court today to 87-months in prison.

Hernandez pleaded guilty in January, admitting that he agreed to use his official position to open border fences and allow unauthorized immigrants to enter the United States from Mexico. Hernandez also agreed to move methamphetamine and other controlled substances from the Southern District of California further north to other locations within the United States.

In his plea agreement, Hernandez acknowledged he took Mexico-based smugglers on a tour of the U.S.-Mexico border, showing them the best locations to sneak unauthorized immigrants into the U.S. He also provided information about the location of monitoring devices and cameras – information only known to him by virtue of his position as a Border Patrol agent. Hernandez admitted that he opened restricted border fences on several occasions to allow people to illegally enter the United States in exchange for cash payments of $5,000 per opening.

“In every instance, the U.S. Attorney’s Office stands ready to reinforce public trust in law enforcement,” said U.S. Attorney Tara McGrath. “When that trust is undermined by criminal acts concealed behind a badge, it threatens both public safety and the integrity of our judicial system. Hernandez put personal greed above the safety of others and this sentence reflects the magnitude of his actions.”

“Agent Hernandez disgraced his badge when he chose to smuggle both drugs and people across the border,” said DEA Acting Special Agent in Charge Anthony Chrysanthis. “His sentence reflects the harm he caused his coworkers and his country. As law enforcement we are held to a higher standard, and we must be held accountable for our actions.”

“Today’s sentencing sends a clear message that federal officials who betray the people they are sworn to protect will be held accountable for their actions,” said DHS Inspector General Joseph V. Cuffari.

According to court records, Hernandez admitted that on May 9, 2023, he met with someone who unbeknownst to him was, in fact, an undercover federal agent, and agreed to pick up a bag full of narcotics that would be hidden near the border fence. Hernandez agreed to pick up the bag while on duty and deliver it to the undercover agent in exchange for $20,000. Once the agreement was made, agents loaded the bag with 10 kilograms of fake methamphetamine, one pound of real methamphetamine, and a tracking device, before placing the bag in a storm drain near the border fence.

Later that evening, Hernandez drove his official vehicle to the storm drain while on duty and retrieved the bag. He drove the bag to his residence in Chula Vista and left the bag there for the remainder of his work shift. On May 10, 2023, after his shift was over, Hernandez returned home, retrieved the bag, and drove to meet with the undercover agent. Upon arrest, agents confirmed that that the bag still contained both the sham and real methamphetamine.

After Hernandez was arrested, agents searched his residence and found $131,717 in cash and 7.7 grams of cocaine. Hernandez admitted at least $110,000 of the cash represented proceeds he received in connection with his narcotics trafficking and bribery activities.

As part of his plea agreement, Hernandez forfeited his personal vehicle used to bring the drugs to the undercover agent; $110,000 of the seized cash; and his interest in his residence where the drugs were maintained.

In court today, U.S. District Judge Janis L. Sammartino said, “Border Patrol is an honorable and admirable agency of the Government sworn to protect and safeguard our borders… [Hernandez] chose to betray the agency, the nation and betray public trust.”

This case is being prosecuted by Assistant U.S. Attorneys Sean Van Demark and Lawrence A. Casper.

DEFENDANT                                                      Case Number 23cr1114-JLS
Hector Hernandez                                               Age: 55                                                    Chula Vista, CA

SUMMARY OF CHARGES
Attempted Distribution of Methamphetamine – 21 U.S.C., Sections 841(a)(1) and 846
Maximum penalty: Life imprisonment in prison with a 10-year mandatory minimum

Receiving Bribe by Public Official – 18 U.S.C., Section 201(b)(2)
Maximum penalty: Fifteen years in prison

INVESTIGATING AGENCIES
Department of Homeland Security, Office of Inspector General
Drug Enforcement Administration
Federal Bureau of Investigation

Source: US FBI

NEWS RELEASE SUMMARY – May 22, 2024

SAN DIEGO – Jiaci Liu appeared in federal court today following his arrest for engaging in a multinational fraud conspiracy targeting seniors, including a 63-year-old man from Poway. 

According to a federal complaint, the San Diego Elder Justice Task Force (ETJF) learned of the fraud scheme after the victim reported to the San Diego Sheriff’s Department that he been duped as part of a layered tech support, bank impersonation and government impersonation scam.

Specifically, while on his personal computer, a pop-up window appeared indicating there was a possible virus on his computer and instructing him to contact a phone number. When he contacted the number, he was transferred through a series of co-conspirators pretending to work in tech support. The victim was informed that his computer had viruses.  The victim was then transferred to another conspirator who claimed to be from the victim’s bank.  During that interaction, the victim was told there were unauthorized transfers from his bank.  The victim was instructed to go immediately to his bank and to withdraw all his money for safekeeping. 

At the direction of the conspirators, the victim went to his bank and withdrew $28,000.  The victim was then instructed by the conspirators that someone from the U.S. Marshals Service would come to his house to pick up the money.  After the interaction, the victim became suspicious and contacted the San Diego Sheriff’s Department, which informed the victim to contact them if anyone showed up to pick up the money.

According to the complaint, on June 9, 2023, defendant Jiaci Liu arrived at the victim’s residence. The victim called the police, who arrived and found Liu outside the victim’s home.  Liu’s cellphone was seized and later searched.  Investigators located evidence indicating that in just one week in June 2023, Liu had picked up over $348,000 dollars from multiple victims located in Southern California and Phoenix, Arizona. 

“Everyone with a computer is vulnerable to sophisticated scams like the one alleged in this case,” said U.S. Attorney Tara McGrath.  “If you think you’ve been targeted, report it quickly. The faster the report comes in, the more likely we are to catch the scammers and recover any swindled money.”

“Individuals committing tech scams are getting more and more innovative with the methods they use to con innocent people,” said FBI San Diego Acting Special Agent in Charge Houtan Moshrefi. “The FBI and its law enforcement partners continually adapt our strategies so that we can stay ahead of those who scheme and collude to defraud the American public. We are committed to ensuring each of these individuals is brought to justice.”

A detention hearing is scheduled for May 24, 2024 at 9:30 a.m. before U.S. Magistrate Judge David D. Leshner. 

This case was investigated by the San Diego Elder Justice Task Force and its member agencies, including the U.S. Attorney’s Office, Federal Bureau of Investigation, San Diego County District Attorney’s Office, Carlsbad Police Department, San Diego Police Department, and the California Highway Patrol.

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

This case is being prosecuted by Assistant U.S. Attorney Kevin Mokhtari.

DEFENDANT                                               Case Number 24MJ1929-MSB                               

Jiaci Liu                                                          Age: 34                                   Monterey Park, California

SUMMARY OF CHARGES

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

Criminal Forfeiture – Title 18, U.S.C., Sections 981(a)(1)(C), 982(a)(2)(A), and Title 28, U.S.C., Section 2461(c)

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

INVESTIGATING AGENCIES

Federal Bureau of Investigation

San Diego County District Attorney’s Office
San Diego County Sheriff’s Department

San Diego Police Department

San Diego Elder Justice Task Force

*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

SACRAMENTO, Calif. — Tracy Arnett, 39, of Los Angeles, pleaded guilty today to conspiracy to commit money laundering, U.S. Attorney Phillip A. Talbert announced.

According to court documents, from August 2023 through March 2024, Arnett and three co-conspirators conducted multiple financial transactions involving funds they believed to be proceeds of cocaine trafficking. Their belief as to the nature of the funds was based on representations of an individual working at the direction of law enforcement. In total, the co-conspirators received approximately $940,000 in purported drug trafficking proceeds. Of that amount, the co-conspirators laundered approximately $811,000.

This case is the product of an investigation by the IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew Thuesen and Whitnee Goins are prosecuting the case.

A sentencing date for Arnett has not been set. Arnett is scheduled for a status conference regarding sentencing before U.S. District Judge Dena Coggins on June 13, 2025. Arnett faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the court’s discretion 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. — Henry Ellard Jr., 39, of Fresno, pleaded guilty today to stealing $144,000 in COVID-19 relief money, U.S. Attorney Phillip A. Talbert announced.

According to court records, in July 2020, Ellard created Baptiste Ellard LLC. He then caused Baptiste Ellard LLC to apply for and receive $144,000 in COVID-19 relief money from the Small Business Administration (SBA). Ellard falsely represented to the SBA that Baptiste Ellard LLC had 10 employees, an annual payroll of more than $695,000, and that he would use the loan proceeds for business expenses. However, Ellard knew the company had no employees, no annual payroll, and no real operations and as such, the company was ineligible for PPP loans. Ellard subsequently used $144,000 of the relief money for personal expenses, including restaurants, bars, airfare, hotels, clothing, and golf.

This case is the product of an investigation by the U.S. Treasury Inspector General for Tax Administration and the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton and Arelis M. Clemente are prosecuting the case.

Ellard is scheduled to be sentenced on Feb. 24, 2025. Ellard faces a maximum statutory penalty of 10 years in prison and fine of $250,000. 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.

This case is part of the California COVID-19 Fraud Enforcement Strike Force, which is one of the interagency COVID-19 fraud strike forces established by the United States Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California, and focuses on large-scale, multistate, and egregious pandemic relief fraud. The strike force uses prosecutor-led, and data analyst-driven, teams to identify and bring to justice those who stole pandemic relief money.

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

Source: US FBI

SACRAMENTO, Calif. — Stephen Joseph Crittenden, 44, of Suisun City, was sentenced today by U.S. District Judge Troy L. Nunley to two years and one month in prison for bribery concerning programs receiving federal funds, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Crittenden was a California Department of Corrections and Rehabilitation correctional officer at the California Medical Facility in Vacaville. From 2021 through 2023, he accepted bribes from inmates, totaling more than $45,000, to smuggle cellphones into the California Medical Facility.

“Crittenden abused the trust placed in correctional officers by repeatedly taking bribes to smuggle contraband into a prison,” said U.S. Attorney Talbert. “Today’s sentence reflects the seriousness of his abuse of trust and should deter other correctional officers from engaging in the same conduct.”

“The FBI has no tolerance for corruption by public employees – especially law enforcement officers – who are entrusted to uphold the law and serve the public. No person is above the law,” said FBI Sacramento Special Agent in Charge Sid Patel. “This case exemplifies the strong partnership between the FBI and CDCR. The FBI works tirelessly to ensure corrupt public officials are held accountable to preserve the public’s trust in and integrity of these vital positions.”

This case was the product of an investigation by the Federal Bureau of Investigation, with assistance from the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Nicholas M. Fogg prosecuted the case.

Source: US FBI

SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Quentin Nelson, 32, of Corcoran, charging him with receiving and possessing prepubescent child pornography, U.S. Attorney Phillip A. Talbert announced.

According to court documents, on Dec. 25, 2020, Nelson received and attempted to receive child pornography. Nelson also possessed numerous images and videos of prepubescent child sexual abuse materials on a phone and an SD card.

This case is the product of an investigation by the Federal Bureau of Investigation and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Kristin F. Scott is prosecuting the case.

If convicted, Nelson faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on each count. 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 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

No community should be impacted by the senseless violence of a school shooting, especially during the holidays. Our hearts are broken for the families, employees, volunteers, and responders affected by the shooting at Feather River Adventist School. FBI personnel remain on the scene, working to support the Butte County Sheriff’s Office to find answers for the victims and the community. The FBI is deeply committed to this effort, leveraging all available resources to further this investigation, support the families of injured children, and help the community heal. We need your help, too. If you have any information that may aid this investigation, please call 1-800-CALL-FBI or submit a tip to tips.fbi.gov.

Source: US FBI

LOS ANGELES – A Glendale woman and a Lakewood man have been found guilty by a jury of paying and receiving hundreds of thousands of dollars in illegal kickbacks for patient referrals that resulted in the submission of approximately $3.2 million in fraudulent claims to Medicare for purported hospice care, the Justice Department announced today. 

Nita Palma, 75, of Glendale, was found guilty late Wednesday of 12 counts of health care fraud and 16 counts of paying illegal kickbacks for health care referrals. Percy Abrams, 74, of Lakewood, also was found guilty late Wednesday of six counts of receiving illegal kickbacks for health care referrals. 

According to evidence presented at a six-day trial, Palma was excluded from Medicare, a federal health insurance program for people aged 65 and older, because of prior federal convictions for receiving illegal kickbacks. While she was excluded from Medicare, Palma purchased Magnolia Gardens Hospice through her daughter in 2015 and concealed her ownership interest in Magnolia Gardens Hospice from Medicare. 

Palma then paid “marketers”, including Abrams, hundreds of thousands of dollars in illegal kickbacks for patient referrals that Palma could bill to Medicare for purported hospice care.

Hospice is only for those who are terminally ill and have a life expectancy of six months or less. Hospice provides comfort care to a patient instead of trying to cure the patient’s illness, and a patient forfeits certain benefits under Medicare when electing hospice. 

Consistent with instructions provided by Palma, Abrams falsely represented to prospective patients that they did not need to be dying to be on hospice. After collecting personal identifying information from prospective patients that were not dying, Abrams sent the information to Nita Palma so she could bill Medicare for purported hospice care.

Through Magnolia Gardens Hospice, Palma caused the submission of approximately $3.2 million in fraudulent claims to Medicare in 2015 and 2016 for purported hospice care for patients that were not dying. Palma received approximately $6,000 each month a patient was billed to Medicare for hospice. In turn, Palma paid Abrams and other marketers up to $1,000 per month in illegal kickbacks for each patient referred to her that was billed to Medicare for hospice. Many of the patients that were billed to Medicare through Magnolia Gardens Hospice did not know they were signed up for hospice, and some patients only found out after they were denied medical coverage for services they needed.

During the health care fraud scheme, Medicare requested additional documentation from Magnolia Gardens Hospice to support the purported hospice claims. In response, Palma and her husband directed employees to create fake patient charts and had those fake patient charts submitted to Medicare. Court documents allege that while awaiting trial in this matter, Palma took control of three other hospices and caused the submission of approximately $4.8 million in claims for purported hospice care. 

United States District Judge Dolly M. Gee scheduled a sentencing hearing for April 23, 2025, at which time Palma and Abrams will each face a sentence of up to decades in federal prison. 

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

Assistant United States Attorney Roger A. Hsieh of the Major Frauds Section and Matt Coe-Odess of the General Crimes Section are prosecuting this case. 

Source: US FBI

LOS ANGELES – The president of an entertainment production company, who pleaded guilty earlier this year to embezzling more than $200,000 from a television production, has agreed to plead guilty to new criminal conduct – this time, misappropriating more than $182,000 from investors in various television productions, the Justice Department announced today.

David Ozer, 59, of Roslyn Heights, New York, has agreed to plead guilty to one count of wire fraud, which carries a statutory maximum penalty of 20 years in federal prison. Ozer previously entered a guilty plea to a separate wire fraud charge on October 22.

Ozer is expected to make his initial appearance in United States District Court in downtown Los Angeles on January 24, 2025.

As he previously admitted as part of his guilty plea, Ozer is a producer and the president of Strong Studios Inc., a production company based in Charlotte, North Carolina. According to his plea agreement, Ozer swindled Ravenwood-Productions LLC, the principal financial backer of “Safehaven,” a supernatural thriller television series, by misappropriating approximately $214,486 in production funds from bank accounts for the production. Ozer also created fraudulent accounting records, including falsified invoices, and forged a letter purportedly from his accountant.

After news of Ozer’s first plea agreement was announced, additional victims came forward. As Ozer has admitted in his new plea agreement filed today, he enticed two victims to loan him money in connection with a television series titled “Endangered.” In return, Ozer’s victims were promised executive producer credits. He also solicited funds from another victim in connection with drafting a script. Despite Ozer’s claims that the script development was in progress, the victim learned from the screenwriter that the script neither had been written nor was the screenwriter paid by Ozer. Instead, Ozer misappropriated the three victims’ funds, which totaled approximately $182,500.

To create the false appearance that the misappropriated funds had been used for their intended purpose, Ozer created fraudulent documents, including falsified bank records, as well as forged correspondence from another producer.

Ozer is scheduled to be sentenced by United States District Judge Stanley Blumenfeld Jr. in his first fraud case on January 28, 2025.

The FBI is investigating this matter.

Assistant United States Attorneys Alexander B. Schwab of the Corporate and Securities Fraud Strike Force and Matt Coe-Odess of the General Crimes Section are prosecuting this case.

Source: US FBI

LOS ANGELES – A Long Beach man was sentenced today to 80 months in federal prison for participating in the March 2022 daylight smash-and-grab robbery of a Beverly Hills jewelry store in which nearly $2.7 million worth of merchandise was stolen.

Jimmy Lee Vernon III, 33, was sentenced by United States District Judge George H. Wu, who also ordered Vernon to pay $2,674,600 in restitution.

Vernon pleaded guilty on August 1 to one count of interference with commerce by robbery (Hobbs Act). He has been in federal custody since September 2022.

“This defendant took part in a blatant assault on a store operating in daylight hours, believing he could rob and intimidate others with impunity,” said United States Attorney Martin Estrada. “Now, he will serve a lengthy sentence in federal prison. Our office and our law enforcement partners will not tolerate these sorts of brazen attacks on our community.”

On March 22, 2022, Vernon committed a robbery of the Luxury Jewels of Beverly Hills store. Vernon used heavy tools to smash the store’s display case while employees were present, causing fear of injury to people inside the store.

Vernon then removed jewelry and other items from the store display cases valued at approximately $2,674,600. The merchandise consisted of approximately 19 bracelets, seven pairs of earrings, four necklaces, a pair of obelisks, eight rings, and 20 watches.

After the robbery, Vernon and his accomplices ran out of the store, leaving behind their Kia vehicle – which had been reported stolen out of Long Beach four days before the robbery. During the robbery, Vernon’s cellphone fell out of his sweatpants pocket while he smashed the jewelry store’s window, was left behind and later recovered by law enforcement, according to an affidavit previously filed in this case.

Two days after the robbery, one of Vernon’s accomplices posted on his Instagram account numerous photographs that included large stacks of money and a message praising his “robbery gang,” according to court documents.

As for Vernon’s co-defendants, Deshon Bell, 22, of Long Beach, pleaded guilty in December 2023 to one count of Hobbs Act robbery and is serving a federal prison sentence of one year and one day. Ladell Tharpe, 39, of Long Beach, pleaded guilty on September 30 to one count of Hobbs Act robbery and awaits a January 6, 2025, sentencing hearing.

The FBI and the Beverly Hills Police Department investigated this matter.

Assistant United States Attorneys Kevin J. Butler of the Violent and Organized Crime Section and Kevin B. Reidy of the Major Frauds Section prosecuted this case.