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Source: US FBI

FRESNO, Calif. — A federal grand jury returned a three-count indictment today against Preston Nelson-Kestner, 21, of Oakhurst, charging him with stalking, distribution and possession of images of child sexual exploitation, Acting U.S. Attorney Michele Beckwith announced.

According to court documents, between October 2023, and Feb. 13, 2024, Nelson-Kestner used social media applications including OnlyFans, Instagram, and TikTok to engage in a course of conduct that caused, attempted to cause, and would be reasonably expected to cause substantial emotional distress to an adult victim in Fresno. Nelson-Kestner used the social media apps to send threatening messages to the victim and sent videos and images of a minor engaged in sexually explicit conduct.

This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department with assistance from the Madera County Sheriff’s Office and the Central California Internet Crimes Against Children Task Force. Assistant U.S. Attorney David L. Gappa is prosecuting the case.

If convicted, Nelson-Kestner faces a maximum statutory penalty of five years in prison and a $250,000 fine for stalking, a minimum of five years in prison up to 20 years in prison for distribution and a 10-year maximum sentence for possession of images of child sexual exploitation. 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.

Source: US FBI

Matthew Piercey, 48, of Palo Cedro, pleaded guilty today to wire fraud, concealment money laundering, and witness tampering in connection with a $35 million investment fraud scheme, Acting U.S. Attorney Michele Beckwith announced. Piercey pleaded guilty without a written plea agreement to all 27 of the pending counts and the Court vacated the May 19, 2025, trial date.

According to court documents, between July 2015 and August 2020, Piercey solicited investor funds by holding himself out as an investment advisor through his purported investment companies Family Wealth Legacy and Zolla. He made a variety of false and misleading statements to investors about the nature and success of trading algorithms, commissions and fees, investment strategies, the liquidity of investments, and the financial stability of Family Wealth Legacy and Zolla. For example, Piercey marketed the “Upvesting Fund,” an automated algorithmic trading fund that he falsely claimed had a history of success. He took money from numerous investors in this purported fund, but privately admitted to an associate that there was no Upvesting Fund.

Running a Ponzi-like fraud scheme, Piercey used some investor money to make payments to other investors. As the scheme progressed, Piercey used a Redding-area chiropractor to conceal his continued operation of the investment fraud and take in new money.

In total, Piercey paid back only approximately $8.8 million to investors of the approximately $35 million invested. He used the additional money for various business and personal expenses, including paying a criminal defense firm and buying two residential properties. Few, if any, liquid assets remained to repay investors.

According to court documents, when Piercey learned he was under investigation, he took steps to dissuade investors and witnesses from responding to grand jury subpoenas. His actions caused several individuals to delay producing documents, while at the same time, he syphoned off nearly $775,000 from victim investors into a bank account he controlled.

On Nov. 16, 2020, when law enforcement agents attempted to arrest Piercey, he fled from arrest and led agents on a vehicle chase through residential neighborhoods and onto the highway before abandoning his vehicle and entering Lake Shasta with an underwater submersible device. After about 20 minutes in the water, he emerged from the lake where he was arrested.

After his arrest, Piercey used coded language to communicate with two individuals who visited him in jail. He directed these individuals to take actions with the contents of a U-Haul storage locker he had rented in Redding. A subsequent FBI search of the storage locker revealed that Piercey had rented the locker under a fictitious name, Chadwick Givens, using a fake California driver’s license. The locker contained, among other things, a wig and ₣31,000 in Swiss francs.

“Investment fraud schemes like the one led by this defendant can devastate lives, retirements, and undo decades of planning by hard-working people simply looking for a trusted place to invest their money,” said Acting U.S. Attorney Beckwith. “Our office will continue to work with the FBI and our law enforcement partners to bring to justice those who commit these frauds and who seek to tamper with the grand jury process.”

“Many invested their life savings with Matthew Piercey’s companies, not knowing that the claim of guaranteed returns were the empty promises of a Ponzi scheme,” said FBI Sacramento Special Agent in Charge Sid Patel. “The FBI agents, forensic accountants, and other specialized personnel work tirelessly to ensure those who exploit the trust of a hopeful public will face serious consequences.”

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Matthew Thuesen, Audrey B. Hemesath, Christopher S. Hales, and Kevin Khasigian are prosecuting the case.

Piercey is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Sept. 4, 2025. Two other defendants who conspired with Piercey in the scheme are Ken Winton and Gary Klopfenstein. Winton pleaded guilty in December 2020 and Klopfenstein pleaded guilty in July 2024. Both Winton and Klopfenstein are scheduled for status conferences regarding sentencing on Aug. 21, 2025.

Piercey faces a maximum statutory penalty of 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss, whichever is greater, for each wire fraud and mail fraud count; 20 years in prison and a fine of up to $250,000 for each witness tampering count; and 20 years in prison and a fine of up to $500,000 or twice the value of the property involved, whichever is greater, for each money laundering count. 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

After a two-day trial before U.S. District Judge Dena Coggins, a jury found Jeffrey Caldwell, 36, of Vallejo, guilty of being a felon in possession of ammunition, Acting U.S. Attorney Michele Beckwith announced.

According to evidence presented at trial, law enforcement officers responded to the Super 8 Motel on 2070 Solano Avenue in Vallejo after multiple callers reported hearing gunshots from inside the building. By the time the officers arrived, Caldwell had barricaded himself in his hotel room and refused commands to surrender. A multi-hour standoff ensued, which ended when Caldwell finally left the room and attempted to flee. A subsequent search of the room discovered a privately manufactured firearm containing one round of ammunition. Caldwell is prohibited from possessing ammunition due to more than 10 prior felony convictions in California and Arizona, including for assault, burglary, and stalking.

This case is the product of an investigation by the Vallejo Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Charles Campbell and Alexander Cárdenas are prosecuting the case.

Caldwell is scheduled to be sentenced by Judge Coggins on Aug. 22, 2025. Caldwell faces a maximum statutory penalty of 15 years in prison and a $250,000 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.

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.

Source: US FBI

Michael Garcia, 36, of Sacramento County, was sentenced Tuesday to 17 years and six months in prison for conspiring to possess and distribute methamphetamine and being a felon in possession of a firearm, Acting U.S. Attorney Michele Beckwith announced.

According to court documents, Michael Garcia conspired with his wife Nancy Garcia, his father Gonzalo Garcia, Tyler Combs (all co-defendant in this case), and others to sell methamphetamine and heroin in Sacramento and Solano Counties. Michael Garcia began this conspiracy while he was serving a state sentence for narcotics offenses at the Tulare County Jail.

Michael Garcia worked with his wife, father, and other coconspirators to sell a confidential informant a total of five pounds of methamphetamine and a quarter pound of heroin over five separate occasions, and he personally sold the CI a total of 4 pounds of methamphetamine. During the initial transactions, Nancy Garcia began to negotiate a firearms sale with the confidential informant and was present at the illegal firearms sale described below.

Once out of state custody, Michael Garcia continued the conspiracy to sell methamphetamine and heroin. He also set up a deal with Tylor Combs to sell firearms to the confidential informant. Nancy Garcia, Michael Garcia, and Tyler Combs were present at this illegal firearms deal, which involved 10 firearms, including an unserialized machine gun.

 Screenshot of video Michael Garcia sent to confidential informant bragging about his drug proceeds, saying “Sac money is good money.” 

The 10 firearms that Garcia and Combs sold to the confidential informant.

Michael Garcia and his wife also admitted that they bought a home in Arizona with drug proceeds. The United States is in the process of the forfeiture of this home.

This case is the product of an investigation by the FBI’s Solano County Violent Crimes Task Force, 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 prosecuted the case.

Gonzalo Garcia passed away while in pretrial custody for this case. Tylor Combs has since pleaded guilty both to conspiring to distribute methamphetamine and heroin and to being a felon in possession of firearms. On November 12, 2021, he was sentenced to six years and six months in prison. Nancy Garcia pleaded guilty to a conspiracy to distribute methamphetamine and heroin. On September 10, 2024, she was sentenced to five years in prison.

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

Community Health System and its affiliate Physician Network Advantage Inc. have agreed to pay $31.5 million to the United States to resolve allegations that they violated the False Claims Act based on financial benefits provided to referring physicians, Acting U.S. Attorney Michele Beckwith announced today. Community Health System operates in Fresno County and includes hospitals Community Regional Medical Center and Clovis Community Medical Center.

“We cannot allow medical decisions to be distorted by kickback schemes or efforts to buy physicians’ loyalty with lucrative side perks,” said Acting U.S. Attorney Beckwith. “This settlement demonstrates this Office’s commitment to ensuring that patients’ best interests remain paramount.”

The civil settlement announced today resolves allegations that Community Health System and Physician Network Advantage Inc. (PNA) provided several types of extravagant benefits to induce physicians in the Fresno area to refer their patients to Community facilities for medical services, in violation of the False Claims Act. PNA is a health care technology business formed and funded by Community to support Fresno-area physicians’ adoption of the electronic health records platform used by Community. The United States contends that PNA also played a key role in securing business for Community by unlawful means. In a custom-built lounge located on premises at PNA’s offices, known as HQ2, PNA provided expensive wine, liquor, cigars, and meals to referring physicians, with the knowledge and funding of Community.

The settlement also resolves allegations that Community and PNA provided financial subsidies for electronic health records technology and equipment used by certain physicians in their private offices in return for the referral of governmental health care program patients to Community. Further, the settlement resolves allegations that Community paid bonuses to certain physicians ostensibly for participation in clinical integration activities, when the real purpose of the bonuses was to reward referrals.

The United States contends that these financial benefits violated the federal Anti-Kickback Statute, resulting in false claims for the medical services referred by physicians receiving the benefits, that were submitted to governmental health care programs. The United States also contends that the conduct described above created financial relationships with referring physicians under the Physician Self-Referral Law (known as the “Stark Law”). The Stark Law seeks to safeguard the integrity of the Medicare program by prohibiting a hospital from billing for certain services referred by physicians with whom the hospital has a financial relationship, unless that relationship satisfies one of the law’s statutory or regulatory exceptions, which the United States contends were not met.

“Kickback arrangements aimed at improperly influencing medical decisions will remain a top investigative priority for our agency,” said Acting Special Agent in Charge Robb R. Breeden of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “This settlement demonstrates HHS-OIG’s commitment to identifying and holding accountable those who engage in unlawful financial relationships at the expense of Medicare patients and the taxpayer.”

In connection with the settlement, Community entered into a five-year Corporate Integrity Agreement with HHS-OIG that requires, among other conditions, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks. The Corporate Integrity Agreement also requires an independent review organization to annually assess the policies and systems to track arrangements with some referral sources.

The settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by relator Michael Terpening. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery from that action. The qui tam case is captioned United States ex rel. Terpening v. Fresno Community Hospital and Medical Center, et al., 1:19-CV-01699 (E.D. Cal.). As part of the settlement announced today, Mr. Terpening will receive approximately $5 million.

The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of California and HHS-OIG with assistance from the Federal Bureau of Investigation and the U.S. Postal Service Office of Inspector General. Assistant U.S. Attorney David Thiess handled the case for the U.S. Attorney’s Office.

The claims resolved by this settlement are allegations only, and there has been no determination of liability.

Note: View the settlement here.

Source: US FBI

Brett Curtis Hair, 23, of Bakersfield, pleaded guilty today to aiming the beam of a laser pointer at an aircraft, Acting U.S. Attorney Michele Beckwith announced.

According to court documents, on Sept. 11, 2024, at approximately 12:17 a.m., Kern County Sheriff’s Office helicopter Air 1 was on routine patrol when the cockpit was struck by a bright green laser beam. The Tactical Flight Officer pinpointed the source of the laser emanating from a residence within the Federal Aviation Administration’s (FAA) Critical Flight Zone of Bakersfield’s Meadow Field Airport. At least 15 additional laser strikes appeared to be intentional as the light tracked and struck the helicopter. Once Air 1 arrived above the residence, Hair exited the garage and immediately began striking the helicopter’s cockpit again with the high-powered laser. During the laser strikes, the pilot and Tactical Flight Officer experienced visual interference as the laser repeatedly struck and illuminated the cockpit, making it difficult to see the aircraft’s instruments.

According to the FAA, aiming a laser at an aircraft is a serious safety risk, because many high-powered lasers can incapacitate pilots and interfere with the safe operation of their aircraft. In 2024, pilots reported 12,840 laser strikes to the FAA.

This case is the product of an investigation by the Federal Bureau of Investigation and the Kern County Sheriff’s Office. Assistant U.S. Attorney Karen Escobar is prosecuting the case.

Hair is scheduled for sentencing on Aug. 4, 2025. He faces a maximum statutory penalty of five years in prison and a $250,000 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

Tou Sue Vang, 33, of Sacramento, was sentenced today to 12 years in prison for his role in transporting thousands of stolen catalytic converters across state lines, laundering money, and other related crimes, Acting U.S. Attorney Michele Beckwith announced.

According to court documents, Tou Vang, along with his brother Andrew Vang and mother Monica Moua, purchased stolen catalytic converters from local thieves and sold them to a buyer in New Jersey for more than $38 million. Catalytic converter theft has become prevalent across the nation because of their value, relative ease to steal, and their lack of identifying markings. Thieves steal catalytic converters from vehicles on the street for the precious metals they contain, which may be more valuable per ounce than gold, and then sell them to buyers like T. Vang. The black-market price for certain catalytic converters from California can be more than $1,000 each.

This prosecution is part of a nationwide initiative that dismantled a catalytic converter theft conspiracy. In addition to the three California defendants, this case includes 12 New Jersey defendants, including brothers Navin Khanna and Tinu Khanna, who operated DG Auto and purchased the stolen catalytic converters from California for more than $38 million. Tou Vang and his family operated primarily from their private residences and storage units; and did not have a scrap yard or valid business license. Some of the shipments that Tou Vang made to DG Auto were over 1,000 pounds and contained a single type of high-value catalytic converter, such as the Toyota Prius. Tou Vang and his family used the funds they received from the Khanna brothers and withdrew cash from the bank accounts they controlled to purchase more stolen catalytic converters, thereby promoting the carrying on of the unlawful activity.

Tou Vang spent the proceeds of these stolen catalytic converters to fund his lavish lifestyle, including to purchase a five-acre multi-home complex in Rio Linda for $1.235 million in cash, over a dozen motor vehicles (including two Teslas and two Sea Doos), and an additional home in Sacramento. As part of T. Vang’s sentence, the United States forfeited more than $150,000 in U.S. currency, 13 motor vehicles, four personal watercraft, jewelry, and real estate, amongst other property.

“This defendant led a network of criminals that hurt thousands of innocent car owners,” said Acting U.S. Attorney Beckwith. “This case represents the kind of far-reaching investigation that federal, state, and local law enforcement partners can do when working together. The U.S. Attorney’s Office is committed to continuing its law enforcement partnerships to disrupt criminal conspiracies like this one that target the American people.”

“Theft usually happens in the shadows, most often with the help of professional enablers such as Mr. Vang who facilitated the sale of stolen goods. The financial expertise of IRS Criminal Investigation Oakland Field Office agents has helped trace the assets and unraveled the truth behind these organizations,” said Special Agent in Charge Linda T. Nguyen. “Today’s sentencing is a true reflection of the collaborative commitment between all the local, state, and federal agencies who contributed to this outcome as our way to protect the people in the communities and bring justice to light.”

“This takedown is the first of its kind in the nation and a major step forward in dismantling a catalytic converter theft ring,” said Special Agent in Charge Sid Patel of the FBI Sacramento Field Office. “The group is tied to an estimated $38 million in losses, and this investigation shows the power of strong collaboration. I’d like to extend a special thanks to our law enforcement partners in Yolo and Sacramento counties who helped ensure our shared success.”

This case is the product of an investigation by the Federal Bureau of Investigation and the IRS Criminal Investigation with assistance from the Sacramento County Sheriff’s Department, Sacramento Police Department, Davis Police Department, Auburn Police Department, Livermore Police Department, and San Bernardino County Sherriff’s Department. Assistant U.S. Attorney Veronica M.A. Alegría of the U.S. Attorney’s Office Eastern District of California and Trial Attorney César S. Rivera-Giraud of the Criminal Division’s Violent Crime and Racketeering Section are 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, please visit Justice.gov/OCDETF.