MIL Security Engine-1

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.

Source: US FBI

SACRAMENTO, Calif. — Tyrone Anderson, 44, of Sacramento, was sentenced today to 11 years and three months in prison for conspiracy to distribute and possess with intent to distribute at least 5,000 grams of cocaine and 280 grams of cocaine base and for conspiracy to distribute and possess with intent to distribute heroin, U.S. Attorney Phillip A. Talbert announced.

According to court documents, Anderson is among the 15 federal defendants arrested in 2021 and charged in a 45-count indictment for trafficking narcotics as part of a DEA-led multi-agency operation targeting cocaine and heroin traffickers in North Sacramento. Anderson was intercepted during wiretaps in 2018 and 2019 trafficking kilograms of cocaine and heroin to sub‑distributors in California and from the East Coast. During the wiretap, agents seized 4  kilograms of cocaine that Anderson had sold for $118,000 to a Baltimore sub-distributor. At the time of his arrest, agents seized 567 grams of powder cocaine and 949 grams of heroin from Anderson’s stash location and two loaded firearms from his residence.

Below is the status of Anderson’s co-defendants:

On Sept. 29, 2022, Jason Tolbert, 47, of Sacramento, was sentenced to 57 months in prison for possession with intent to distribute cocaine.

On Nov. 17, 2022, Charles Carter, 36, of Sacramento, was sentenced to 70 months in prison for conspiracy to distribute and to possess with intent to distribute at least 500 grams of cocaine.

On Nov. 17, 2022, Andre Hellams, 40, of North Highlands, pleaded guilty to two counts of using a communication facility to facilitate a drug trafficking offense. Hellams is scheduled to be sentenced on Oct. 24, 2024.

On Dec. 8, 2022, Michael Hampton, 57, of Vallejo, was sentenced to 60 months in prison for to conspiracy to distribute and possess with intent to distribute at least 500 grams of cocaine.

On March 16, 2023, Arlington Caine, 50, of Rio Linda, was sentenced to 22 months in prison for two counts of using a communication facility to facilitate a drug trafficking offense.

On March 14, 2024, Bobby Conner, 53, of Sacramento, was sentenced to six months in prison for two counts of using a communication facility to facilitate a drug trafficking offense.

On March 28, 2024, Maurice Bryant, 53, of Antelope, pleaded guilty to conspiracy to distribute and to possess with intent to distribute at least 5,000 grams of cocaine and 280 grams of cocaine base. Bryant is scheduled to be sentenced on Oct. 17, 2024.

On April 25, 2024, 2023, Dwight Haney, 52, of Sacramento was sentenced to time served for two counts of using a communication facility to facilitate a drug trafficking offense. 

On May 30, 2024, Jerome Adams, 56, of North Highlands, was sentenced to 60 months in prison for two counts of using a communication facility to facilitate a drug trafficking offense.

On Aug. 8, 2024, Steven Hampton, 65, of Sacramento, was sentenced to 84 months in prison for possession with intent to distribute at least 500 grams of cocaine.

On Sept. 26, 2024, Mark Martin, 63, of Sacramento was sentenced to time served for using a communication facility to facilitate a drug trafficking offense.

On Aug. 1, 2024, Alex White, 61, of North Highlands, was sentenced to a term of 38 months (time served) for distribution of cocaine base.

Charges are pending against Yovanny Ontiveros, 41, of Sacramento and Wilmer Harden, 52, of Elk Grove. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is the product of an investigation by the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Marshals Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Forest Service, the U.S. Postal Inspection Service, the Bureau of Land Management, the California Department of Corrections and Rehabilitation, the California Department of Justice, the California Highway Patrol, the Sacramento County Sheriff’s Office, and the Sacramento Police Department. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.

This prosecution is part of the Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. The Sacramento Strike Force is a co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Sacramento Strike Force is to identify, investigate, disrupt, and dismantle the most significant drug trafficking organizations (DTOs) and transnational criminal organizations (TCOs) shipping narcotics, firearms, and money through the Eastern District of California, thereby reducing the flow of these criminal resources in California and the rest of the United States. The Sacramento Strike Force leads intelligence-driven investigations targeting the leadership and support elements of these DTOs and TCOs operating within the Eastern District of California, regardless of their geographic base of operations.

Source: US FBI

SANTA ANA, California – A one-time Orange County man who is one of Romania’s most notorious criminals was sentenced today to 60 months in federal prison for stealing victims’ identities to withdraw money from their public-assistance accounts without their permission.

Florin Duduianu, 39, whose last known residence was in Mission Viejo, was sentenced by United States District Judge John W. Holcomb, who also ordered him to pay $1,850 in restitution.

Duduianu pleaded guilty on January 5 to three counts of bank fraud and unlawful use of unauthorized access devices. After a two-day bench trial, Judge Holcomb on January 23 found Duduianu guilty of two counts of aggravated identity theft.

“This defendant came to our country to victimize the neediest members of our society,” said United States Attorney Martin Estrada. “Our nation is not a piggy bank for foreign criminals, and those who think they can take advantage of our liberties to harm our people are sorely mistaken.” 

“Duduianu stole money which was meant to serve as a critical lifeline to those most in need,” said Akil Davis, the Assistant Director in Charge of the FBI Los Angeles Field Office. “It was a serious offense, and the FBI remains committed to working with our law enforcement partners across the globe to identify fraudsters like this defendant and hold them fully accountable for their crimes.”

In August 2023, law enforcement was conducting an operation to combat Electronic Benefits Transfer (EBT) fraud at various banks and ATMs in Placentia. Police saw Duduianu, accompanied by a passenger, drive up to a Wells Fargo ATM and make multiple withdrawals on different cards. Based on this information, officers pulled Duduianu over. Duduianu lied to the officers, telling them he was depositing, not withdrawing, money from the ATM.

During a search of Duduianu’s passenger, officers found four Visa gift cards, three Wells Fargo ATM receipts, and $1,850 in cash. The Visa gift cards were encoded with EBT card numbers. Those numbers were run through an EBT database, which showed that they belonged to four different people. Based on the Wells Fargo receipts, Duduianu used two of the cards to make three withdrawals totaling $1,850 from the ATM.

The FBI contacted the accountholders for the two EBT accounts from which Duduianu made withdrawals. The accountholders said that they did not know Duduianu or his car passenger and did not give permission to anyone to withdraw funds from their accounts.

During a search of Duduianu’s cellphone, law enforcement found dozens of photos and videos related to ATM skimming as well as tools and techniques used to skim EBT information. Law enforcement also found photos of large sums of cash and hundreds of EBT numbers from multiple states. In the chat history of Duduianu’s phone, the government found an article about EBT fraud that was sent from his phone to four other phone numbers.

On another smartphone law enforcement recovered during Duduianu’s arrest, law enforcement found additional videos related to ATM skimming. Phone records and EBT records showed that this phone was used to check the balance of the EBT accounts of the victims in this case, five days before Duduianu withdrew $1,850 from those same accounts.

“Until his arrest in this case…Duduianu was one of Romania’s ‘Most Wanted’ criminals and an INTERPOL fugitive,” prosecutors argued in a sentencing memorandum. “He leads the ‘Duduianu Clan,’ an exceptionally violent and influential

organized crime group and was previously convicted of attempted murder. In 2020, [Duduianu] fled Romanian prosecution following charges of robbery and blackmail.”

The FBI and the Placentia Police Department investigated this matter.

Assistant United States Attorneys David Y. Pi of the Major Frauds Section and Diane B. Roldán of the General Crimes Section prosecuted this case.

Source: US FBI

            WASHINGTON – An indictment was unsealed today charging Malone Lam, 20, of Miami, FL and Los Angeles, CA, and Jeandiel Serrano, 21, of Los Angeles, CA, with conspiracy to steal and launder over $230 million in cryptocurrency from a victim in Washington, D.C.  Lam, a citizen of Singapore who goes by the online monikers “Anne Hathaway” and “$$$”, and Serrano, who uses “VersaceGod” and “@SkidStar”, were arrested last night and are appearing in U.S. District Court for the Southern District of Florida and the Central District of California, respectively, today.

            The arrests and indictment were announced by U.S. Attorney Matthew M. Graves, FBI Acting Special Agent in Charge David Geist of the Washington Field Office’s Criminal and Cyber Division, and Executive Special Agent in Charge Kareem A. Carter of the Internal Revenue Service – Criminal Investigation (IRS-CI) Washington, D.C. Field Office.

            According in the indictment, since at least August 2024, Lam, Serrano, and others conspired to carry out cryptocurrency thefts and to launder the stolen crypto currency through exchanges and mixing services. The conspirators would fraudulently gain access to victim cryptocurrency accounts and then transfer victim funds into their possession. They laundered the proceeds, including by moving the funds through various mixers and exchanges using “peel chains,” pass-through wallets, and virtual private networks (VPNs) to mask their true identities.  Lam and Serrano then allegedly spent the laundered cryptocurrency proceeds on international travel, nightclubs, luxury automobiles, watches, jewelry, designer handbags, and rental homes in Los Angeles and Miami. In one instance, on August 18, 2024, Lam, Serrano, and their conspirators contacted a victim in D.C. and, through the communications with that victim, fraudulently obtained over 4,100 Bitcoin (worth over $230 million at the time).

            This ongoing investigation is being handled by the U.S. Attorney’s Office for the District of Columbia, the FBI’s Washington Field Office, and the IRS-Criminal Investigation Washington Field Office.  Significant investigative and operational support was provided by the FBI’s Los Angeles and Miami Field Offices.

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

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Source: US FBI

SANTA ANA, California – An Orange County man pleaded guilty today to federal criminal charges for orchestrating a scheme to steal high-value violins and robbing a bank in Irvine.

Mark Meng, 58, of Irvine, pleaded guilty to one count of wire fraud and one count of bank robbery.

According to his plea agreement, from August 2020 to April 2023, Meng schemed to steal valuable violins and keep or resell them for his personal gain. Meng – posing as a collector of musical instruments – contacted violin shops across the country to express interest in receiving the violins on loan for a trial period to determine if he wished to buy them. In some cases, he purchased violin bows before asking for the violins on a trial-period basis.

After receiving each violin, Meng negotiated a purchase price for it, kept the instrument beyond the trial period, then provided the violin shops with a check or set of checks for the violin, knowing the whole time the checks he wrote to the violin shops would be rejected due to insufficient funds.

When a violin shop representative contacted Meng to inform him that the shop’s bank had rejected his checks, he sent a new series of checks, which also later were rejected due to insufficient funds. Sometimes, Meng lied to the violin shops by falsely telling them he had mailed the violin back to them, but that they had been lost in the mail. Eventually, Meng stopped communicating with the violin shops.

After fraudulently obtaining the violins, Meng re-sold them to a buyer – often during the trial periods from the violin shops. For example, on February 1, 2023, a victim loaned Meng a Guilio Degani violin – valued at $175,000 – pursuant to a trial-period contract, which required Meng to return or purchase the violin by February 10, 2023. However, Meng sold this violin to a buyer – who was unaware of the violin’s stolen origin.

According to court documents, Meng also stole the following:

• one Lorenzo Ventapane violin, dated 1823, and valued at $175,000;
• one Guilio Degani violin, dated 1903, and valued at $55,000;
• one Caressa & Francais violin, dated 1913, and valued at $40,000;
• one Francais Lott violin bow, stamped “Lupot,” and valued at $7,500;
• one Gand & Bernardel violin, dated 1870, and valued at $60,000;
• one French, Charles J.B. Colin Mezin violin, valued at $6,500; and
• one German, E.H. Roth Guarneri violin, valued at $6,500.

Despite knowing that he did not own these violins and violin bows, Meng sold three of these stolen violins and a violin bow to a victim for a total of $44,700.

In January 2023, Meng emailed one violin shop in Alexandria, Virginia, to express an interest in obtaining the Ventapane violin and the Degani violin on a trial basis, all the while intending to fraudulently obtain then re-sell them.

On April 2, 2024, Meng entered a bank branch in Irvine, wearing a hat, sunglasses, a bandana covering his face, and blue latex gloves. Meng gave the bank teller a note stating “$18,000. – Withdraw. Please. Stay Cool. No harm. Thx.” When the teller told Meng she did not have access to the money he demanded, Meng responded, “Give me whatever you have.” The teller, fearing harm to herself and her coworkers, handed Meng $446.

United States District Judge David O. Carter scheduled a February 24, 2025, sentencing hearing, at which time Meng will face a statutory maximum sentence of 20 years in federal prison for each count. Meng has been in federal custody since May 9.

The FBI’s Art Crime Team investigated this matter, with assistance from the Irvine Police Department and the Glendale Police Department.

Assistant United States Attorneys Laura A. Alexander and Mark A. Williams, both of the Environmental Crimes and Consumer Protection Section, are prosecuting this case.

Source: US FBI

SANTA ANA, California – Law enforcement officials today arrested six Orange County residents charged in three indictments alleging, among other crimes, they stole identities to defraud California’s unemployment insurance (UI) system and to fraudulently apply for lines of credit from a lender, using the identity theft victims’ homes as collateral.

In total, seven defendants are charged in the three indictments, which were returned by a federal grand jury. The defendants arrested today are expected to be arraigned this afternoon in United States District Court in Santa Ana.

The first indictment, returned on June 12, contains 31 counts, alleges the following defendants participated in a conspiracy that fraudulently obtained debit cards through the California Employment Development Department (EDD), which administers the state’s UI system:

• Tien Vo, 43, of Westminster;
• Crystal Nguyen, 35, of Garden Grove, who is a fugitive;
• Thao Nguyen, 46, of Westminster; and
• Michelle Strange, 40, of Midway City.

All four of these defendants are charged with 22 counts of bank fraud, and each has been charged with two counts of aggravated identity theft. Vo also is charged with one count of possession of unauthorized access devices.

From May 2020 to January 2022, the defendants allegedly obtained UI debit cards, which fraudulently had been obtained by submitting UI applications in the names of identity theft victims. During this time, EDD also administered Pandemic Unemployment Assistance benefits, which Congress authorized in 2020 to provide to individuals who were unemployed because of the COVID-19 pandemic. The defendants then used these debit cards to withdraw unemployment insurance benefits. In total, the defendants withdrew approximately $15,650 in UI benefits from the debit cards.

The second indictment, returned on August 7, contains seven counts, alleges the following defendants schemed to defraud banks by using stolen identities – including by stealing mail – to fraudulently obtain lines of credit secured by the identity theft victims’ actual homes – and were secured without the victims’ knowledge or consent:

• Chien Khang Bui, 36, a.k.a. “Catfish” and “Tommy,” of Anaheim;
• Nangialey Nick Wardak, 54, of Santa Ana; and
• Mandy Lynn McGrew, 35, of Santa Ana.

From February 2020 to March 2022, Bui allegedly obtained debit card numbers, bank account numbers, credit cards, home addresses, telephone numbers, and other personal identifying information belonging to identity theft victims. He then submitted online applications for home equity lines of credit (HELOC) with a mortgage-lending company by using the victims’ stolen information. Bui linked each HELOC application to a bank account that he and other conspirators controlled.

The defendants allegedly lied to the mortgage company that they were the person associated with each application and that they were the owner of each of the houses used as collateral. In total, the conspiracy received approximately $502,806 in fraudulently obtained HELOCs.

All three of these defendants are charged with one count of conspiracy to commit bank fraud, and each of them is charged with one count of aggravated identity theft. Bui also is charged with three counts of bank fraud for allegedly using stolen identities to fraudulently obtain COVID-19 jobless benefits from EDD in July and August of 2020.

“These indictments allege an organized criminal campaign of identity theft targeting banks, California’s unemployment insurance program, and homeowners alike,” said United States Attorney Martin Estrada. “Sophisticated fraud schemes, such as the ones alleged in these indictments, cause real damage to victims, and we will be diligent in rooting them out.”

“I am proud of the extensive investigation conducted by the FBI’s Orange County Asian Organized Crime Task Force,” said Akil Davis, Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Through their hard work and dedication, we were able to dismantle an organization responsible for causing significant financial harm to individuals and public funds designated to assist those in need. The FBI is committed to protecting our communities, financial institutions, and public assistance programs from criminal enterprises that exploit them for personal gain.”

In a third and separate indictment, also returned on August 7 and containing three counts, Bui is charged with two counts of distribution of methamphetamine stemming from alleged incidents in December 2022 and February 2023, and one count of unlawfully possessing a firearm and ammunition.

Bui is not legally permitted to possess firearms or ammunition because of his criminal history, which includes felony convictions in Orange County Superior Court for theft by false pretenses, second-degree commercial burglary, identity theft, identity theft with prior conviction, unlawful taking of a vehicle, and grand theft.

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

If convicted of all charges, the defendants would face a statutory maximum sentence of 30 years in federal prison for each bank fraud-related count, and a mandatory consecutive sentence of two years in federal prison for each aggravated identity theft count. Vo would face up to 10 years in prison for the unauthorized possession of access devices count and Bui would face a statutory maximum sentence of life imprisonment for the methamphetamine distribution counts and up to 15 years in federal prison for the count of unlawful possession of a firearm and ammunition.

The FBI’s Orange County Asian Organized Crime Task Force is investigating these cases. This task force is comprised of the FBI; the Santa Ana Police Department; the Westminster Police Department; the California Department of Justice – Bureau of Gambling Control; the Orange County District Attorney’s Office; the California Employment Development Department; and the United States Department of Labor – Office of Inspector General. The Orange County Sheriff’s Department provided substantial assistance.

Assistant United States Attorney Kevin Y. Fu of the Santa Ana Branch Office is prosecuting the Vo case. Assistant United States Attorney Melissa S. Rabbani, also of the Santa Ana Branch Office, is prosecuting the Bui cases.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

On September 15, 2022, the Attorney General selected the U.S. Attorney’s Offices for the Central and Eastern Districts of California to jointly head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed multiple instances of 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 funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.

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.