MIL Security Engine-1

Source: US FBI

SACRAMENTO, Calif. — Paul Hughes, 41, of Colfax, pleaded guilty today to sexual exploitation of a child, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between September 2018 and June 2019, on three separate occasions Hughes created visual depictions of minors engaged in sexually explicit conduct. Hughes used a cellphone to surreptitiously record at least three videos containing child sexual abuse material and saved them on an external hard drive. In addition to these videos, agents recovered over 3,000 images and videos of child sexual abuse material on Hughes’s external hard drive and Google account.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.

Hughes is scheduled to be sentenced on Jan. 30, 2025, by U.S. District Judge Troy L. Nunley. Hughes faces a mandatory minimum sentence of 15 years in prison and a maximum statutory penalty of 30 years in prison. 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 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

Source: US FBI

SACRAMENTO, Calif. — Sean E. Karjala, 53, formerly of Red Bluff, was sentenced today by U.S. District Judge John A. Mendez to 30 years in prison and a life term of supervised release for production of child sexual abuse material, U.S. Attorney Phillip A. Talbert announced. Karjala’s federal sentence will be served concurrently with his state sentence of 36 years to life for the attempted murder of a California Highway Patrol Officer.

According to court documents, in 2013, Karjala engaged in a months-long inappropriate sexual relationship with a minor female victim after she answered an online Craigslist advertisement. Karjala repeatedly raped the minor victim and subjected her to bondage and other physical abuse. Karjala manipulated the victim into sexual activity with another female and took photos of the activity with his cellphone camera.

After Karjala communicated with an undercover police officer whom he believed was another minor female, investigators searched Karjala’s residence. During the search, investigators found multiple sexual bondage materials including a matching pink and white ankle and wrist cuff set and a collar that Karjala had described in conversations with the undercover officer. They also found clothing commonly associated with younger females and a photo of Karjala and the victim. In Karjala’s vehicle, investigators found a duffle bag containing a bondage manual, condoms, and a local high school counseling slip with the victim’s name. Investigators also located numerous images on Karjala’s cellphone of the victim engaged in sexual acts with another female.

This case was the product of an investigation by the Tehama County District Attorney’s Office and the Federal Bureau of Investigation. Assistant U.S. Attorneys Heiko P. Coppola and Roger Yang prosecuted the case.

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

Source: US FBI

SACRAMENTO, Calif. — Nancy Dalila Escobar Garcia, 35, of Sacramento County, was sentenced today to five years in prison for conspiring to possess and distribute methamphetamine, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Nancy Garcia conspired with her husband Michael Garcia (a co‑defendant in this case) to sell methamphetamine and heroin in Sacramento and Solano Counties. Nancy Garcia began this conspiracy with her husband while he was serving a state sentence for narcotics offenses at the Tulare County Jail.

In furtherance of this conspiracy, Nancy Garcia met with an FBI confidential informant on three separate occasions and personally sold the informant a total of 4 pounds of methamphetamine. During these meetings, Nancy Garcia began to negotiate a firearms sale with the informant and was present at the illegal firearms sale described below. Nancy Garcia also admitted that she and her husband bought a home in Arizona with drug proceeds. Nancy Garcia pleaded guilty on May 21, 2024, and as part of her plea agreement, she is assisting the United States in the forfeiture of this home.

Once out of state custody, Michael Garcia continued the conspiracy to sell methamphetamine and heroin. He also set up a deal with co-defendant Tylor Combs to sell firearms to the informant. Nancy Garcia, Michael Garcia, and Tylor Combs were present at this illegal firearms deal, which involved 10 firearms, including an unserialized machine gun sometimes called a “ghost gun” that is untraceable.

This case is the product of an investigation by the FBI’s Solano County Violent Crimes Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the U.S. Attorney’s Office for the District of Arizona. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.

Tylor Combs pleaded guilty to to counts of being a felon in possession of firearms. On Nov. 12, 2021, he was sentenced to six years and six months in prison.

Michael Garcia has pleaded not guilty and remains in federal custody. The charges are only allegations; Michael Garcia 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.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see www.justice.gov/projectguardian.

Source: US FBI

LOS ANGELES – An Antelope Valley man was sentenced today to three months in federal prison for illegally importing an ancient floor mosaic from Syria depicting the Roman demigod Hercules that is believed to have been made nearly two millennia ago.

Mohamad Yassin Alcharihi, 57, of Palmdale, was sentenced by United States District Judge George W. Hu, who also granted the government’s application for a preliminary order of forfeiture for the mosaic.

At the conclusion of a five-day trial, a jury in June 2023 found Alcharihi guilty of one count of entry of falsely classified goods.

In August 2015, Alcharihi illegally imported the mosaic – which dates from the era of the Roman Empire – by means of a false classification as to its value and quality. The mosaic arrived at Alcharihi’s direction at the Port of Long Beach as part of a shipment from Turkey.

The mosaic depicts a story from ancient Greek and Roman mythology depicting Hercules rescuing Prometheus, who had been chained to a rock by his fellow gods for stealing fire for humanity.

Alcharihi purchased the mosaic in 2015. Instead of disclosing to United States customs officials that he was importing a Syrian antiquity for which he had paid approximately $12,000 and that he knew was worth much more, Alcharihi lied to his customs broker and caused it to falsely declare that he was importing ceramic tiles from Turkey valued at less than $600. Alcharihi paid $40,000 to restore the mosaic and the government’s appraisal expert valued the mosaic at $450,000.

The false classifications occurred months after the United Nations Security Council adopted a resolution condemning the destruction of cultural heritage in Syria, particularly by the terrorist organizations Islamic State in Iraq and the Levant (ISIL) and Al-Nusrah Front.

The mosaic was placed inside a large metal shipping container holding many vases and two other mosaics. An x-ray image of the container taken by CBP showed that the mosaic was hidden in the front of the container – away from the rear access doors – behind a pile of vases. After passing through customs, the mosaic was shipped via truck to Alcharihi’s home.

The mosaic is 15 feet long, 8 feet tall, and weighs approximately 2,000 pounds.  It has been stored at a secure facility in Los Angeles since federal agents seized it from Alcharihi’s garage in March 2016.

The FBI’s Art Crime Team and Homeland Security Investigations investigated this matter.

Assistant United States Attorneys Mark A. Williams and Matthew W. O’Brien of the Environmental Crimes and Consumer Protection Section, Assistant United States Attorney Maxwell K. Coll of the Asset Forfeiture and Recovery Section and Justice Department Trial Attorney Christian A. Levesque of the Human Rights and Special Prosecutions Section prosecuted this case.

Source: US FBI

LOS ANGELES – Law enforcement today arrested six defendants that a federal grand jury charged in a 46-count indictment alleging a Santa Clarita Valley man facilitated a crime tourism group of South Americans and other individuals who engaged in burglaries, thefts, and other crimes throughout the United States, then laundered millions of dollars in illicit proceeds.

The indictment, returned on August 1 and unsealed today, charges seven defendants with multiple felony offenses, including wire fraud, money laundering, conspiracy, and structuring transactions to avoid federal financial reporting requirements.

Crime tourism theft groups are comprised of individuals, often originating from outside of the United States, including from South America and elsewhere, who engage in burglaries, thefts, and other crimes throughout the U.S. As part of the modus operandi of crime tourism theft groups, individuals would enter the United States and engage in theft crime sprees. The fruits of the thefts were often shared with facilitators and co-conspirators who assisted the crime tourists in the commission of their crimes, as well as others, both inside and outside the United States.

“Crime tourism is a major problem impacting not just Southern California, but our entire nation,” said United States Attorney Martin Estrada. “These defendants facilitated and directed crime tourists who committed hundreds of robberies across the country – in essence, they acted as quarterbacks for a team of thieves. We will continue to work with our local partners to hold accountable those who would come to our country and take advantage of our liberties to steal from the American people.”  

“Today, we dismantled a non-traditional facilitator of organized crime, and now we have a blueprint for future investigations,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “We hope these arrests will discourage future businesses from conducting similar operations, thus reducing the number of thefts and burglaries in our communities.”   

“This investigation required years of hard work and dedication on behalf of the Los Angeles Police Department and our partners,” said LAPD Chief, Dominic Choi. “I’m pleased that our collective efforts have resulted in the apprehension of these career criminals who have made it their business to victimize our residents and facilitate the movement of foreign criminals. I’m convinced that having them off the streets makes our communities safer.”

According to the indictment, Juan Carlos Thola-Duran, 57, a.k.a. “Parcero,” of Canyon Country, and his live-in girlfriend, Ana Maria Arriagada, 41, a.k.a. “Parcera,” controlled and operated defendant Driver Power Rentals (DPR), a Van Nuys-based car rental or dealership business. Arriagada was DPR’s registered owner.

From at least January 2018 to July 2024, Thola-Duran directed associates, often members of crime tourism theft groups traveling from South America, to travel to various parts of the United States to commit thefts, including shoplifting goods from stores, burglarizing residences and commercial businesses, and stealing victims’ credit cards and debit cards.

Thola-Duran, Arriagada, and DPR provided DPR vehicles for the thief co-conspirators to drive throughout the United States to commit thefts and burglaries and – to make the car rentals appear legitimate and maintain anonymity – require their co-conspirators to provide false identification when renting a vehicle for DPR’s records.

Thola-Duran and Arriagada directed the thief co-conspirators who stole credit or debit cards to immediately go to stores such as Target, Best Buy, The Home Depot, and others to max out the stolen cards by purchasing electronics, gift cards, designer purses and other high-end luxury goods before the stolen cards could be frozen or cancelled.

Then, Thola-Duran arranged to the thieves to deliver stolen or fraudulently obtained goods to associates at DPR or to mail them to other co-conspirators, including defendant Miguel Angel Barajas, 57, of Northridge, or to other conspirators at a FedEx store in Sherman Oaks. At Thola-Duran’s direction, defendants Barajas, John Carlo Thola, 33, of Canoga Park, and others picked up the parcels then delivered them to Thola-Duran and other conspirators. Thola-Duran then acted as a “fence” to buy the goods – at a fraction of their retail value – and pay the thieves a percentage of the items’ value. He then sold the stolen goods to other buyers for approximately $5.5 million over the course of the conspiracy, including approximately $5.1 million sent to various bank accounts controlled by the co-conspirators.

The defendants allegedly used their ill-gotten gains to purchase and maintain assets, including real estate and horses, and structured cash withdrawals to avoid triggering the requirement that banks report transactions exceeding $10,000 to the U.S. Treasury Department.

The indictment further alleges that Thola-Duran, Arriagada, and others from May 2020 to June 2021 conspired to fraudulently obtain $274,998 in COVID-19 business relief loans.

“Since 2019, we have arrested over 130 suspects responsible for perpetrating these crimes, with the vast majority using cars supplied by Driver Power Rentals,” said Ventura County Sheriff James Fryhoff. “Our efforts aren’t stopping there. We formally partnered with the FBI, creating the Ventura County Major Theft Task Force. This task force has been instrumental in pursuing federal charges against Thola-Duran and other members of his criminal organization.”

“Driver Power Rentals provided cars that were allegedly used to take high-end merchandise and jewelry from Ventura County homeowners,” said Ventura County District Attorney Erik Nasarenko. “Taking down a key operator who fueled crime tourism is essential to neighborhood safety, and I am grateful to U.S. Attorney Estrada and his team for aggressively prosecuting this network.”

“These criminals were running a burglary operation with a sophistication that rivals Amazon and instead of dispatching delivery drivers, they were dispatching trained thieves throughout Southern California to steal from what should be where we are safest – our homes,” said Orange County District Attorney Todd Spitzer. “Crime doesn’t pay in Orange County and individuals who engage in crime tourism are on notice that my office will work with our local and federal partners to continue demanding accountability and bringing those who victimize our community to justice.”        

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

If convicted, the defendants would face a statutory maximum sentence of 20 years in federal prison for each wire fraud- and money laundering-related count, up to 10 years in federal prison for each structuring count, and up to five years in federal prison for the conspiracy to transport stolen property interstate count.

The FBI, the Los Angeles Police Department, the Ventura County Sheriff’s Office, the Ventura County District Attorney’s Office, and the Orange County District Attorney’s Office are investigating this matter. The United States Postal Inspection Service, the Meriwether County (Georgia) Sheriff’s Office and the Scottsdale (Arizona) Police Department provided assistance.

Assistant United States Attorneys Jennifer Chou and Lindsay M. Bailey of the Violent and Organized Crime Section and Assistant United States Attorney Ryan J. Waters of the Asset Forfeiture and Recovery Section are prosecuting this case.

Source: US FBI

LOS ANGELES – The founder and chief executive officer of a California-based company that marketed stem cell-based products linked to multiple hospitalizations has pleaded guilty to a felony violation of the Federal Food, Drug and Cosmetic Act, the Justice Department announced today.

John Warrington Kosolcharoen, 53, most recently of Rancho Santa Margarita, pleaded guilty to one count of introducing an unapproved new drug into interstate commerce with the intent to defraud and mislead. Kosolcharoen is currently in custody serving a sentence for a separate, unconnected conviction.

“This defendant recklessly put people’s lives in danger, giving false hope to patients with serious illnesses,” said United States Attorney Martin Estrada. “Today’s guilty plea shows that we will hold accountable corporate executives and healthcare professionals who put profits over patients.”

According to court documents, beginning in 2016, Kosolcharoen created two companies, the Irvine-based Liveyon LLC and the San Diego-based Genetech Inc., to manufacture and distribute injectable stem cell products made from human umbilical cord blood. Liveyon marketed the products under different brand names, including “ReGen.” In pleading guilty, Kosolcharoen admitted that he and others misrepresented ReGen as suitable for the treatment of a variety of conditions, such as lung and heart diseases, autoimmune disorders, Alzheimer’s disease, Parkinson’s disease and others. Liveyon marketed the products throughout the United States until about April 2019 using advertising materials that contained multiple false and misleading statements about their purported safety and effectiveness.

In recent years, the U.S. Food and Drug Administration (FDA) has warned consumers that patients seeking cures and remedies for serious diseases and conditions may be misled about unapproved stem cell products that are illegally marketed, have not been shown to be safe or effective, and, in some cases, may have significant safety issues that put patients at risk. Stem cell products are regulated by FDA, and generally they must have FDA approval before being introduced into interstate commerce.

As part of the plea agreement, Kosolcharoen admitted that to mislead FDA about Liveyon’s activities, he directed Liveyon’s purchase orders to falsely state that the stem cell products were being sold “for research purposes only.” In 2018, FDA and the Centers for Disease Control and Prevention (CDC) received reports of patients in multiple states requiring hospitalization for bacterial infections after receiving Liveyon products. Kosolcharoen admitted that he and others fraudulently induced customers into purchasing stem cell-derived Liveyon products by, among other things, misleading the public about the cause and severity of adverse events suffered by Liveyon patients, and falsely reporting and concealing material facts regarding the outcome of an FDA inspection of Genetech. According to FDA records, that inspection documented evidence of significant deviations from good manufacturing and tissue practices.

“Unapproved stem cell treatments not only endanger public health but also exploit the hopes of patients who seek relief from the most serious of diseases,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The Department of Justice is committed to safeguarding the public from these schemes and will vigorously pursue legal action to hold accountable those who unlawfully market and sell these unproven therapies.”

“We are grateful for the work by the Department of Justice to hold accountable establishments that prey upon vulnerable populations by marketing potentially dangerous stem cell products with false and misleading claims about their safety and effectiveness,” said Director Peter Marks, M.D., Ph.D. of FDA’s Center for Biologics Evaluation and Research.

“When unscrupulous providers offer umbilical cord blood stem cell products and treatments that are both unapproved and unproven, they put consumers’ health at risk, and multiple users of this firm’s products in fact suffered adverse events,” said Special Agent in Charge Robert Iwanicki of FDA Office of Criminal Investigations Los Angeles Field Office. “FDA will continue to investigate and bring to justice those who endanger the public’s health for material gain.”

“This investigation was a joint effort between multiple federal agencies and state and local health departments to quickly put a stop to the distribution of unsafe, contaminated products,” said Director Michael Bell, M.D. of CDC’s Division of Healthcare Quality Promotion. “The rapid response by our public health system identified products marketed as stem cell treatments to be the source of serious infections in dozens of patients. Our message to all consumers and providers is to heed the warning against the use of unapproved products like these with unproven claims of effectiveness for conditions like joint disease, chronic pain, or COVID-19. Please don’t let products like these put you or your patients’ health at risk.”

FDA’s Office of Criminal Investigations, FBI, Amtrak Office of Inspector General, Defense Criminal Investigative Service, Department of Health and Human Services Office of Inspector General, Department of Labor Employment Benefits Security Administration and California Department of Health Care Services investigated the case.

Assistant United States Attorneys Mark Aveis of the Major Frauds Section and David H. Chao of the General Crimes Section, Assistant Director Ross S. Goldstein and Trial Attorneys Meredith B. Healy, Kathryn A. Schmidt and Peter J. Leininger of the Justice Department’s Consumer Protection Branch are prosecuting the case.

United States District Judge Otis D. Wright II scheduled a September 23 sentencing hearing, at which time Kosolcharoen will face a statutory maximum sentence of three years in federal prison.

Source: US FBI

RIVERSIDE, California – A Riverside County man was sentenced today to 188 months in federal prison for running a Ponzi scheme that lasted nearly 20 years and fraudulently obtained more than $24 million from at least 200 investors.

Paul Horton Smith Sr., 61, of Moreno Valley, was sentenced by United States District Judge Jesus G. Bernal, who also ordered him to pay $13,331,505 in restitution.

Smith pleaded guilty on January 8 to one count of wire fraud.

“This defendant’s greed and deceit caused major losses for his victims, who discovered that the supposed gains for their retirement were nothing more than a lie,” said United States Attorney Martin Estrada. “My office will continue to aggressively prosecute fraudsters who take advantage of victims in our community, and I also encourage everyone to use caution and skepticism with regard to any investments, especially those that seem too good to be true.”

“Paul Smith’s clients trusted him. Smith knew that and used it to his advantage, selling them on a bogus investment opportunity and pocketing those funds,” said Akil Davis, Assistant Director in Charge of the FBI Los Angeles Field Office. “The fact that the bulk of his investors were seniors, men and women alike, and in various stages of vulnerability, makes this case all the more heartbreaking. Now, he’s finally being held accountable. The FBI will continue shutting down crooks like this to help find justice for their victims.”

Smith operated Riverside-based companies named Northstar Communications LLC, Planning Services Inc., and eGate LLC. From July 2000 to May 2020, Smith obtained money from investors by soliciting individuals – who often were elderly or retired – to invest in something Smith called “Northstar.” Some of the investors previously were Planning Services clients.

Smith communicated with the victim investors regarding Northstar in person, over the telephone, and via email and text messages. He falsely told investors that Northstar was an annuity or an investment like an annuity. He falsely told other investors that Northstar invested in real estate or followed the stock market. He typically told the investors that their investment would generate a fixed rate of return and was a “safe investment.”

While Smith led most Northstar investors to believe his company reinvested their initial investment, generating the percentage they were to earn, in fact, he never invested the money. Instead, Smith deposited all investor funds into a non-interest-bearing checking account.

Smith used some money from later Northstar investors to pay earlier Northstar investors’ monthly interest payments and to repay earlier investors who wanted to withdraw their investment.

For example, in April 2019, Smith caused one victim to invest with him $400,000 – life insurance proceeds after the victim’s spouse had died. The victim wrote a personal check for that amount and the check was deposited into a bank account in Riverside, which then was electronically transferred to the bank’s Alabama headquarters for processing.

Smith promised the victim he would invest the $400,000 in a safe investment with a 5% rate of return. But Smith never invested the money. Instead, he transferred the funds to pay other victims of his Ponzi scheme. In an attempt to conceal his criminal activity, Smith made 11 payments to the victim that totaled $163,324.

As a result of the scheme, Smith fraudulently obtained more than $24 million from at least 200 investors. Of these investors, 106 victims have not been fully repaid. The total loss for these victims is $13,331,505.

The FBI investigated this matter. The United States Securities and Exchange Commission, which filed a complaint and obtained a judgment against Smith and Northstar Communications LLC in 2020, provided assistance.

Assistant United States Attorney Benjamin J. Weir of the Riverside Branch Office prosecuted this case.

Source: US FBI

SANTA ANA, California – A former Inglewood Police Department (IPD) officer was sentenced today to 30 months in federal prison for stealing cocaine from IPD’s lock-up and reselling it on the street.

John Abel Baca, 48, of Whittier, then a 21-year veteran of the Inglewood Police Department and its union representative, was sentenced by United States District Judge James V. Selna. Judge Selna also ordered Baca to pay a $40,000 fine and found that Baca abused his position of trust as a police officer and that his sales extended over a lengthy period beginning in 2020.

Baca pleaded guilty in October 2023 to one count of distribution of cocaine.

“This defendant – a veteran of the Inglewood Police Department – abused his position as a law enforcement officer to promote his drug trafficking activities,” said United States Attorney Martin Estrada. “I thank IPD for its cooperation in bringing the defendant to justice – someone who broke his oath to protect the public.”

“Former officer Baca tarnished the badge and dishonored the majority of those who serve and protect our communities with integrity,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “This case serves as a reminder that no one is above the law, and corruption and criminal behavior will not be tolerated.”

Baca distributed cocaine on two occasions, the first in April 2021, when he delivered cocaine to a buyer. Baca then delivered approximately one kilogram of cocaine to the same buyer during another meeting in May 2021, in exchange for $22,000 in cash.

In February 2021, the buyer informed the FBI that Baca, then an active-duty IPD officer, previously had offered to sell the buyer one kilogram of cocaine, two kilograms of “White China” heroin, and an unlimited supply of black tar heroin. The buyer reported that Baca claimed to have stolen drugs and cash during routine traffic stops that Baca made as a drug task force officer with IPD.

During a secretly recorded meeting in late April 2021, Baca provided a sample of the cocaine to the buyer to provide to purported buyers. During that meeting, Baca also offered to sell the buyer a kilogram of “China White” heroin for $10,000. Several days later, Baca negotiated the price for one kilogram of cocaine – $22,000 in cash – and then delivered a brick of cocaine to the buyer’s workplace on May 4, 2021. Later the same day, Baca collected $22,000 in cash from the CW’s residence.

The FBI investigated this matter. The Inglewood Police Department provided its full cooperation during the investigation.

Assistant United States Attorney Cassie D. Palmer of the Public Corruption and Civil Rights Section prosecuted this case.

Source: US FBI

LOS ANGELES – Disbarred plaintiffs’ personal injury attorney Thomas Vincent Girardi was found guilty by a jury today of leading a years-long scheme in which he embezzled tens of millions of dollars of money that belonged to his clients, some of whom awaited payment for treatment of severe physical injuries.

Girardi, 85, of Seal Beach, was found guilty of four counts of wire fraud.

“Tom Girardi built celebrity status and lured in victims by falsely portraying himself as a ‘Champion of Justice,’” said United States Attorney Martin Estrada. “In reality, he was a Robin-Hood-in-reverse, stealing from the needy to support of a lavish, Hollywood lifestyle. Today’s verdict shows that the game is up – we can all now see this defendant for what he was and the victims he callously betrayed.” 

“Mr. Girardi exploited his clients’ misfortunes on a grand scale,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation, Los Angeles Field Office. “His clients sought his help in the wake of significant trauma and injury, yet he violated their trust to steal from them and fund his own lavish lifestyle, and he will now face the consequences of his actions.”

“Mr. Girardi was retained to advocate for clients who put their trust in him, but instead, lied to them and stole their money to fund his lavish lifestyle,” said Akil Davis, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Girardi falsely promoted himself in the media as a pillar of the legal community with a heightened sense of justice, but the clients he wronged for many years have now found actual justice in today’s verdict.”

According to evidence presented at a 13-day trial, Girardi – a once-powerful figure in California’s legal community – ran the now-defunct law firm Girardi Keese. For years, Girardi misappropriated and embezzled millions of dollars from client trust accounts at his law firm. The scheme involved defendant Girardi stealing millions of dollars in client settlement funds and failing to pay Girardi Keese clients – some of whom had suffered serious injuries in accidents – the money they were owed.

In carrying out this scheme, from October 2010 to late 2020, Girardi provided a litany of lies for failure to pay clients and directed a law firm employee to pay previously defrauded clients or other unrelated expenditures. Girardi sent lulling communications to the clients that, among other things, falsely denied that the settlement proceeds had been paid and falsely claimed that Girardi Keese could not pay the settlement proceeds to clients until certain purported requirements had been met. These bogus requirements included addressing supposed tax obligations, settling bankruptcy claims, obtaining supposedly necessary authorizations from judges, and satisfying other debts.

Girardi diverted tens of millions of dollars from his law firm’s operating account to pay illegitimate expenses, including more than $25 million to pay the expenses of EJ Global, a company formed by his wife related to her entertainment career, as well as spent millions of dollars of Girardi Keese funds on private jet travel, jewelry, luxury cars, and exclusive golf and social clubs.

At the end of 2020, as Girardi and his law firm faced mounting legal problems related to his years-long theft of client funds, Girardi Keese was forced into involuntary bankruptcy. The State Bar of California disbarred Girardi in July 2022.

United States District Judge Josephine L. Staton scheduled a December 6 sentencing hearing, at which time Girardi will face a statutory maximum sentence of 20 years in federal prison for each count.

Relatedly, co-defendant Christopher Kazuo Kamon, 50, formerly of Encino and Palos Verdes and who was residing in The Bahamas at the time of his November 2022 arrest on a federal criminal complaint, awaits trial in this matter in January 2025. Kamon, the former chief financial officer at Girardi Keese, is charged with multiple fraud counts for allegedly aiding and abetting Girardi’s scheme to defraud clients. Kamon allegedly also embezzled millions of dollars from the law firm’s accounts for his own personal enrichment. Kamon, who remains in federal custody, has pleaded not guilty to these charges.

Girardi, Kamon, and David R. Lira, Girardi’s son-in-law and a former lawyer at Girardi Keese, also face federal fraud charges in Chicago. Trial in that case is scheduled for March 3, 2025.

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

IRS Criminal Investigation and the FBI investigated this matter. The Office of the United States Trustee provided assistance.

Assistant United States Attorneys Scott Paetty of the Major Frauds Section and Ali Moghaddas of the Corporate and Securities Fraud Strike Force are prosecuting this case.