Contra Costa Herald

News Of By and For The People of Contra Costa County, California

Bay Point drug trafficker sentenced to six years in prison

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By William Elwood, Public Affairs Officer, U.S. Attorney Northern District of California

OAKLAND – Carson Fries was sentenced today to 72 months in federal prison for drug trafficking.  U.S. District Judge Haywood S. Gilliam, Jr. handed down the sentence.

Fries, 34, of Bay Point, California, was charged by Criminal Complaint on September 22, 2025, and charged by Information on May 12, 2026.  Fries pleaded guilty on July 29, 2026, to Possession with Intent to Distribute 50 Grams or More of a Mixture or Substance Containing a Detectable Amount of Methamphetamine, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(B)(viii)).  Fries was a significant drug supplier in Contra Costa County.  According to the plea agreement, Fries admitted to selling large quantities of meth on at least three instances between August 29, 2025, and September 9, 2025, in Bay Point.  On August 29, 2025, he sold approximately 478 gross grams of methamphetamine.  On September 3, 2025, Fries sold approximately 518 gross grams of methamphetamine.  And on September 9, 2025, Fries sold approximately 506 gross grams of methamphetamine.  Additionally, 160 grams of methamphetamine and 33 firearms and a stockpile of ammunition were found at Fries’ residence during a search conducted pursuant to a search warrant.

United States Attorney Craig H. Missakian and Drug Enforcement Administration (DEA) Special Agent in Charge Bob P. Beris made the announcement.  In addition to the prison term, Judge Gilliam also sentenced the defendant to four years of supervised release.

Assistant U.S. Attorney Ivana Djak is prosecuting the case with the assistance of Jessie Chelsea and Amala James.  The prosecution is the result of an investigation by the DEA and the Concord Police Department.

According to localcrimenews.com, the six-foot, one-inch tall, 200-pound Fries is White and was previously arrested Jan. 11, 2014 by CHP – Contra Costa for evading a police officer.

Further Information:

Case No. 26-CR-231

Electronic court filings and further procedural and docket information are available at https://ecf.cand.uscourts.gov/cgi-bin/login.pl. Judges’ calendars with schedules for upcoming court hearings can be viewed on the court’s website at www.cand.uscourts.gov.

Allen D. Payton contributed to this report.

Two men acting as agents of China sentenced to 30 months in prison

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Defendants facilitated secret cash payments using Livermore drop box targeting U.S. military personnel for China’s Ministry of State Security

The FBI San Francisco Field Office was assisted by FBI’s Portland, Houston and San Diego Field Offices, and Naval Criminal Investigative Service

By William Elwood, Public Affairs Officer, U.S. Attorney’s Office Northern District of California

OAKLAND – Two nationals of the People’s Republic of China (PRC) were sentenced today to federal prison for conspiring to act as agents of the PRC government and acting as agents of a foreign government without prior notification to the Attorney General.  Liren “Ryan” Lai, 40, and Yuance Chen, 39, were each sentenced to 30 months imprisonment and three years of supervised release by U.S. District Judge Jon S. Tigar.  The defendants agreed to operate under the direction and control of the PRC’s Ministry of State Security (MSS), carrying out clandestine intelligence activities in the United States that included facilitating secret “dead drop” cash payments in exchange for information related to the national security of the United States, gathering information about U.S. military personnel and installations, and assisting efforts to recruit potential intelligence assets from within the U.S. military.

“These defendants were directed by a foreign intelligence service to gather information about the U.S. military in the hopes of undermining our national security.  This office and our federal law enforcement partners stand watch day and night to prevent our adversaries from doing just that, and we will continue to do so,” said United States Attorney Craig H. Missakian. “There are many nations around the world that wish this country ill.  And today’s sentences should demonstrate our commitment to holding accountable anyone who poses a similar threat to our nation.”

According to court documents, Lai and Chen began acting as agents of the MSS no later than May 2021.  The MSS is the PRC’s principal civilian intelligence service, responsible for conducting foreign intelligence and counterintelligence operations.  Lai recruited Chen into the scheme and initially served as an intermediary between Chen and MSS intelligence officers.  Chen subsequently received assignments directly from MSS officers.

As detailed in the government’s sentencing memorandum, Lai and Chen facilitated a clandestine cash payment of approximately $10,000 in January 2022.  While the defendants were in the PRC, they coordinated with individuals in the United States to leave a backpack containing the cash in a locker at a recreational facility in Livermore, California.  Such arrangements, known as “dead drops,” allow intelligence operatives to transfer money or information without directly meeting the intended recipient.

The defendants’ illegal activities extended beyond facilitating covert payments on behalf of the MSS.  Beginning in 2022, Chen gathered information about U.S. military installations and personnel at the direction of Lai and MSS intelligence officers.  These activities included obtaining photographs of Navy Base Kitsap in Bremerton, Washington, and photographs and videos of military recruits and active-duty sailors inside a Navy recruiting station in Southern California.  Chen also collected personal identifying information about a U.S. Navy employee and maintained detailed biographical information about military personnel who were potential intelligence targets.

In March 2023, Lai traveled to the U.S. and delivered a cell phone to Chen for covert communications with the MSS referred to by Chen as a “state secret.”  Chen later traveled to China in 2024 and 2025, where he met with MSS officers and received additional assignments concerning U.S. service members.

In April 2025, Lai again traveled from China to the U.S. to carry out assignments for the MSS.  The following month, the MSS directed him to travel to Phoenix to facilitate another clandestine cash payment of approximately $20,000 in furtherance of its intelligence operations.

Lai and Chen were arrested on June 27, 2025, during a coordinated Federal Bureau of Investigation (FBI) counterintelligence and law enforcement operation.  A federal grand jury in the Northern District of California returned an indictment on July 1, 2025, charging both defendants with conspiracy to act as agents of a foreign government without prior notification to the Attorney General, in violation of 18 U.S.C. § 371, and act as agents of a foreign government without prior notification, in violation of 18 U.S.C. § 951.

Lai pleaded guilty to both offenses on December 12, 2025.  Chen pleaded guilty to both offenses on February 20, 2026.

The FBI San Francisco Field Office led the investigation, with assistance from the FBI’s Portland, Houston and San Diego Field Offices, and the Naval Criminal Investigative Service.

The National Security, Cyber & Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California and the National Security Division’s Counterintelligence and Export Control Section handled the prosecution of the case.  Significant operational support and assistance was also provided by the U.S. Attorney’s Offices for the District of Oregon, the Southern District of Texas, and the Southern District of California.

Case No. 4:25-cr-00186-JST

11 foreign nationals arrested in California on federal charges alleging they Illegally registered and voted in U.S. elections

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28 charged in statewide Operation Protect the Vote, five in Bay Area

By Ciaran McEvoy, PIO, U.S. Attorney’s Office Central District of California

LOS ANGELES – Federal law enforcement throughout California today arrested 11 foreign nationals living in the United States who are charged in criminal complaints with federal crimes, including that they fraudulently registered to vote in U.S. elections, electoral contests in which most of them cast illegal and fraudulently obtained ballots.

A total of 28 people were charged statewide, 21 actually voted in elections and 11 were arrested today. Law enforcement is seeking the other individuals or have been summoned.

Today’s arrests are part of “Operation Protect the Vote” – a coordinated effort among all four California-based United States Attorney’s Offices to combat and root out fraud in U.S. elections and protect electoral integrity.

Source: republicanpollworkers.com

All 28 foreign nationals charged are lawful permanent residents (LPRs), or “green card” holders. Although LPRs have legal immigration status in the United States, they are not U.S. citizens and are not permitted to vote in U.S. elections.

The criminal charges include making false statements in a naturalization application and some of the defendants also are charged with fraudulent voter registration. Both charges are felonies that carry a statutory maximum sentence of five years in federal prison.

The defendants arrested today are expected to make their initial appearances this afternoon in U.S. District Court. No pleas will be taken today.

On October 13, the federal government provided a list of these individuals to California to ensure that their vote-by-mail ballots were set aside until these individuals’ citizenship status could be confirmed. California declined to assist the federal government in setting aside their ballots, prompting a lawsuit by the United States that seeks a court order to prevent the unlawful dilution of American citizens’ votes and to uphold the integrity of our elections.

“Every illegal vote cancels out the vote of a lawful American citizen,” said Acting Deputy Attorney General Trent McCotter. “Each of the 28 defendants charged today appears on the list of more than 20,000 likely noncitizen registrants we provided to California election officials last week. California refused to look at that list. Today’s charges show exactly what that refusal puts at risk. California must verify the citizenship of those more than 20,000 registrants before mail-in ballots are counted.”

“Today’s arrests prove what we have been saying,” said First Assistant United States Attorney Bill Essayli. “California is mailing ballots to noncitizens, and they are refusing to comply with federal law, which makes it a crime for noncitizens to vote. The voting rights of American citizens must be protected.”

“Homeland Security Investigations (HSI) is committed to protecting the integrity of our nation’s electoral process by investigating allegations of criminal conduct that undermine public confidence in our elections,” said HSI Acting Executive Associate Director John A. Condon. “Working with our federal, state, and local law enforcement partners, we will continue to pursue those who knowingly violate federal law, while ensuring that every investigation is conducted fairly, thoroughly, and consistent with due process.”

According to court documents, the defendants knowingly and willfully lied under oath in their voter registration applications that they were U.S. citizens to be permitted to vote in California. Their fraudulent voter registration applications were approved, and, in many cases, the defendants illegally voted in recent U.S. elections. They subsequently lied in their paperwork to become naturalized U.S. citizens that they had never claimed U.S. citizenship, nor had they registered to vote or voted in U.S. elections.

Broken down by jurisdiction, the following defendants are charged in today’s takedown:

Central District of California

All the following defendants below in this jurisdiction face felony charges, including false statements in a naturalization application:

  • Omar Alexander Muñoz, 72, a Belizean national living in Commerce, fraudulently registered to vote in September 2019, claiming his was a U.S. citizen, then voted in U.S. elections in 2020, twice in 2022, and in 2024. He also lied on his application to become a naturalized U.S. citizen when he falsely stated under oath to have never claimed to be a U.S. citizen.
  • Amandeep Kaur, 30, an Indian national living in Rancho Palos Verdes and who is seeking to become a U.S. citizen, fraudulently registered to vote in December 2022 and voted in the November 2024 U.S. election.
  • Ana Domínguez, 60, a Salvadoran national living in Long Beach, fraudulently registered to vote in July 2006 and lied in her naturalization paperwork in March 2026.
  • Axel Giovani Prera García, 46, a Guatemalan national and Pico Rivera resident, fraudulently registered to vote in 2002 and 2005, and lied in his naturalization paperwork in June 2025.
  • Flavio Alejandro Zúñiga, 43, a Mexico national and La Puente resident, fraudulently registered to vote in 2003 and lied in his naturalization paperwork in February 2026.
  • Butleng Taing, 43, a Cambodian national living in Long Beach, fraudulently registered to vote in July 2021, voted in the 2022 and 2024 U.S. elections, and lied on his naturalization paperwork in August 2025.
  • Carlos Antonio Galeas, 54, a Honduran national and West Covina resident, fraudulently registered to vote in 2012 and 2016, then lied in his naturalization paperwork in September 2018.
  • Ernest Gutiérrez Ruvalcaba, 57, a Mexican national living in Wilmington, fraudulently registered to vote in February 2024 and voted one month later.
  • Jesús Narez-Madrigal, 52, a Mexican national living in Carson, fraudulently registered to vote in 2014, voted in the 2024 U.S. general election, and lied in his naturalization paperwork in June 2024.
  • José Antonio Bañuelos-Díaz, 42, a Mexican national and West Adams resident, fraudulently registered to vote in 2007 and lied on his naturalization paperwork in March 2025.
  • Muhammad Khan, 50, a Pakistani national and Anaheim resident, submitted a provisional ballot in 2020 and lied on his naturalization paperwork five years later.
  • Rouzbeh Seyamaknejad, 63, a Canadian national and Rancho Palos Verdes resident, fraudulently registered to vote in December 2018, lied in his naturalization application in January 2024, and voted in the November 2024 U.S. election.
  • Sulema de León, 35, a Mexican national and Long Beach resident, fraudulently registered to vote in 2013, lied on her naturalization application in 2019, and voted in the November 2020 U.S. general election.

Eastern District of California

The following defendants are charged with voting by an alien in a federal election, a misdemeanor that carries a statutory maximum sentence of one year in federal prison:

  • Maricela Nazarín González, 43, a Mexican national living in Clovis, registered to vote in 2020, indicating that she was a U.S. citizen, and voted in elections in 2022, twice in 2024, and 2025.
  • Rony de Jesús Sicaja, 38, a Guatemalan national living in Fresno, fraudulently registered to vote in 2017, and voted in the June 2022 primary election and the November 2024 general election in the United States.
  • Camino Giles Jiménez, 51, a Mexican national living in Kerman, knowingly voted in three U.S. elections despite knowing he is a noncitizen, the most recent election being the June 2026 primary.
  • Juan Antonio Rivas García, 46, a Mexican national and Sacramento resident, fraudulently registered to vote in 2018 and 2020, both times falsely asserting under oath that he was a U.S. citizen. Rivas voted in the 2022 and 2024 U.S. elections.
  • Giezell Viduya Adawag, 41, a Philippines national and Vacaville resident, fraudulently registered to vote the day of the November 2024 general election, falsely certified that she was a U.S. citizen, and voted in the election that day.
  • Kamlesh Navnitlal Shah, 67, an Indian national living in Sacramento, fraudulently registered to vote on the day of the November 2024 general election and voted that day. He is charged via information.

Northern District of California

The following defendants are charged with attempted procurement of naturalization contrary to law, false statement under oath in any matter relating to naturalization or citizenship, and voting by an alien:

  • Verónica Bullene, 43, a.k.a. “Verónica Hernández Martínez,” a Mexican national living in Petaluma, made false statements on her naturalization application that she had never claimed to be a U.S. citizen when, in fact, she did so under penalty of perjury to register to vote in 2022 and 2023 then voted in 2024.
  • David Shapiro, 41, a Georgian national living in San Jose, fraudulently registered to vote in 2024 and later voted in a U.S. election, and made false statements on his naturalization application that he had never claimed to be a U.S. citizen.
  • Moe Thida Lwin, 57, a Myanmar national and Daly City resident, fraudulently registered to vote in 2024 and then proceeded to illegally vote in a U.S. citizen. She made false statements on her naturalization paperwork as well.
  • Manakotau Mataele Finau, 61, a Tongan national and Hayward resident, fraudulently registered to vote in the 2024 election then vote, then lied about it in naturalization paperwork.
  • Maribel del Carmen Garcés Barriga, 62, an Ecuadoran national and San Francisco resident, made false statements in her naturalization paperwork that she never claimed U.S. citizenship and had never voted in a U.S. election or had registered to vote. In fact, Garcés fraudulently registered to vote in 2024 and proceeded to vote in a U.S. election.

Southern District of California

The following defendants are charged with false claim to citizenship to vote, unlawful attempted procurement of naturalization, and false statement under oath in matter relating to naturalization or citizenship:

  • José Probitsado Amaro, 51, a citizen of the Philippines living in National City, fraudulently registered to vote by falsely claiming to be a U.S. citizen. He then cast a ballot in the November 2024 general election and made false statements during his naturalization interview, denying that he had ever claimed U.S. citizenship and misrepresenting his voting history.
  • Jennifer Jung, 31, a Canadian national living in San Diego, fraudulently registered to vote by falsely claiming to be a U.S. citizen. She then cast a ballot in the November 2024 general election and made false statements during her naturalization interview, denying that she had ever claimed U.S. citizenship and misrepresenting her voting history.
  • Erick Ronaldo Soto Mendizábal, 64, a citizen of Guatemala and former Oceanside resident now living in Moreno Valley, fraudulently registered to vote by falsely claiming to be a U.S. citizen. He then cast a ballot in the November 2024 general election and made false statements in his naturalization application, denying that he had ever claimed U.S. citizenship and misrepresenting his voting history.
  • Pamele Arbués Line, 56, a citizen of the Philippines living in Escondido, registered to vote, cast a ballot in the November 2024 general election, and made false statements in her naturalization interview, denying that she had ever claimed U.S. citizenship and misrepresenting her voting history.

Criminal complaints and informations merely contain allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Homeland Security Investigations (HSI) is investigating these matters in the Central District of California. HSI and the FBI are investigating these matters in the Eastern and Northern Districts of California. HSI, the FBI, and United States Citizenship and Immigration Services are investigating the matters in the Southern District of California.

Assistant United States Attorneys Michael Wheat and Minjae Kim of the Orange County Office are prosecuting the Central District of California cases. Assistant United States Attorneys Kevin Khasigian and Joshua Banister are prosecuting the Eastern District of California cases. Special Assistant United States Attorney Roger Dinh is prosecuting the Northern District of California cases.

Allen D. Payton contributed to this report.

Concord man sentenced to 18 years in prison for violent extortion scheme, shooting at federal officers

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Suspect mailed and made other threats, also conspired with co-defendant to distribute controlled substances, maintain drug lab in Richmond

By U.S. Attorney’s Office, Northern District of California

OAKLAND – Joel Rowland Dowen was sentenced today, Friday, August 7, 2026, to eighteen years in federal prison, for engaging in a violent extortion scheme, shooting at a federal officer, drug dealing and bank fraud.  Co-defendant Micah-Luc Almeida was sentenced to three years in federal prison for conspiring to deal drugs with Dowen.  United States District Judge Jon S. Tigar handed down the sentence. He faced a maximum statutory sentence of 20 years in prison on each of the three charges against him.

Dowen, 46, of Concord, California, and Almeida, 47, of San Francisco, California were indicted in a superseding indictment by a federal grand jury on March 26, 2024.  As previously reported, Dowen was charged with mailing threatening communications with intent to extort, in violation of 18 U.S.C. § 376(b) and assault on a federal officer with a deadly weapon, in violation of 18 U.S.C. § 111(b); both Dowen and Almeida were charged with conspiracy to manufacture and distribute Methylenedioxyamphetamine (MDA); and Almeida was additionally charged with possession with intent to distribute MDA, in violation of 21 U.S.C. §§ 846, 841(a)(1).  Dowen was separately charged in 2025 with bank fraud, in violation of 18 U.S.C. § 1344.  The defendants pleaded guilty to all counts.

In their plea agreements, Dowen and Almeida admitted that from 2020 to 2024 they conspired to manufacture and distribute large quantities of federally controlled substances, including MDA and psilocin.  Dowen and Almeida maintained a drug manufacturing laboratory in Richmond, California, from where law enforcement seized hundreds of kilograms of waste material from attempted drug manufacturing.

Dowen also admitted to engaging in a pattern of threats and violence against a victim and their family to extort the victim for millions of dollars and a drug-manufacturing recipe.  Dowen arranged for three individuals to violently assault the victim’s elderly father (then 80 years old) in his home, causing life-threatening injuries.  After the assault, Dowen continued to threaten the victim and other members of the victim’s family and set the victim’s home on fire. When law enforcement came to arrest Dowen in 2024, he shot at them with a handgun through the front door as they were breaching the entrance, hitting one DEA agent’s protective shield.

United States Attorney Craig H. Missakian and DEA Special Agent in Charge Bob P. Beris made the announcement.

In addition to the prison term, Judge Tigar sentenced both Dowen and Almeida to a 3-year period of supervised release.

The case is being prosecuted by the Office’s Organized Crime Section.  Assistant U.S. Attorney Lina Peng and former Assistant U.S. Attorney Dan Karmel handled the case, with assistance from Legal Administrative Specialist Sara Slattery and Legal Assistant Freya Picciotto. The prosecution is the result of an investigation by the DEA, IRS-CI (Criminal Investigations), ATF, FBI, HIS (Homeland Security Investigations) and U.S. Postal Inspectors, with the assistance of the Concord Police Department.

According to localcrimenews.com, Dowen is white, five-foot, seven-inches tall and weighs 280-pounds.

Allen D. Payton contributed to this report.

Concord man gets 21 months in federal prison for selling counterfeit sports memorabilia

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San Francisco Giants player Willie Mays in 1955 posing for the camera of an Associated Press photographer. Public domain. Source: Wikpedia

After pleading guilty to fraud scheme; claimed bat was used by Willie Mays during 1954 World Series; must pay over $1 million in restitution

By U.S. Attorney’s Office, Northern District of California

OAKLAND – Daniel Damato was sentenced on Monday, June 29, 2026, to 21 months in federal prison for his role in a wire fraud scheme in which he knowingly sold counterfeit sports memorabilia and attempted to obstruct the FBI’s investigation into his criminal conduct. United States District Judge Araceli Martínez-Olguín handed down the sentence. He faced a maximum statutory penalty of 20 years in prison and a $250,000 fine.

Damato, 40, of Concord, California, was charged by Information on October 20, 2025, with one count of wire fraud. The Information alleged that between 2022 and 2024, Damato, a sports memorabilia dealer, doctored and gave false provenance to valuable items to make them appear as authentic and legitimate sports collectables. Damato then attempted to sell these items to unsuspecting buyers at heavily inflated prices.

The Information specifically described two sports memorabilia items Damato fraudulently marketed and sold—a baseball bat he represented was a 1954 game-used World Series bat and a jersey he asserted was a 1972 game-worn jersey. Damato claimed that the bat was used and the jersey was worn by Willie Mays, described as one of the greatest baseball players who ever lived, according to the Information

As previously reported by the Herald, on December 8, 2025, Damato pled guilty to the wire fraud count charged in the Information. In connection with his plea, Damato admitted that despite his assertions to the contrary, the bat he sold for $100,000 to one victim had not been used in the 1954 World Series by Mays. Rather, Damato admitted that the bat was a “factory error” bat that was an inch shorter than what Mays used during his career. Damato further admitted that he sold other fraudulent items, including a jersey he falsely claimed was worn by Mays that he sold for $50,000 to a second victim. In addition, the Court found that Damato defrauded a third victim in connection with his sports memorabilia scheme, determining that Damato stole over $900,000 from that victim while falsely promising to deliver sports memorabilia.

In addition to his fraudulent conduct, Damato admitted in his plea agreement that after the FBI executed a search warrant on his residence, he contacted at least one potential witness in an attempt to obstruct the government’s investigation.

United States Attorney Craig H. Missakian and FBI Special Agent in Charge Scott Schelble made the announcement.

In addition to the prison term, Judge Martínez-Olguín sentenced Damato to a three-year period of supervised release and ordered restitution in the amount of $1,068,940. Damato had previously been remanded into custody and will begin serving his sentence immediately.

Assistant United States Attorney Abraham Fine is prosecuting the case with the assistance of Amala James. The prosecution is the result of an investigation by the FBI.

Allen D. Payton contributed to this report.

Former East Bay financial advisor, Danville man pleads guilty to operating a long-running $9.5 million Ponzi scheme

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Sentencing for 78-year-old Edwin Emmett Lickiss, Jr. of Alamo-based Foundation Financial Group scheduled for August 28, faces up to 30 years in prison, $500K in fines

By United States Attorney, Northern District of California

OAKLAND – Edwin Emmett Lickiss, Jr., pleaded guilty in federal court today to one count of wire fraud and one count of money laundering in connection with a decades-long Ponzi scheme.

Lickiss, 78, of Danville, Calif., admitted that from 1998 through September 2024, he defrauded more than 93 investors of at least $9.5 million.

United States Attorney Craig H. Missakian, FBI Special Agent in Charge Matthew Cobo, and IRS Criminal Investigation (IRS-CI) Oakland Field Office Special Agent in Charge Linda Nguyen made the announcement.

To induce investments, Lickiss falsely claimed that he would place victim funds into exclusive, safe, tax-free bonds, with some generating returns in excess of 20 percent.  Lickiss also issued fraudulent promissory notes on the letterhead of his former firm, Foundation Financial Group.

In addition, the Securities Exchange Commission (SEC), On July 21, 2025, the SEC charged Lickiss, Jr., with selling fraudulent promissory note investments to approximately 80 investors as part of a Ponzi scheme that lasted over 25 years. According to the SEC’s complaint, Lickiss fraudulently offered and sold to investors approximately $12.7 million in promissory notes, which purported to pay interest rates of between 9 and 32 percent per annum.

In fact, Lickiss used subsequent victim funds to make payments to those who had invested earlier, consistent with a Ponzi scheme.  Lickiss also diverted victim funds for his own use, including cash withdrawals, home renovations, travel, and payments on vehicles, mortgages, and personal credit cards.

According to the IRS, on July 21, 2025, “A federal grand jury indicted Edwin Emmett Lickiss Jr., on one count of wire fraud and one count of money laundering in connection with an alleged $9.5 million investment fraud scheme. Despite the suspension and loss of his broker’s license, Lickiss allegedly continued to solicit and obtain investments from victim investors until around September 2024. Lickiss was a financial advisor based in Danville and Alamo, Calif., who owned and operated Foundation Financial Group, a firm that provided investment services to investors in the Northern District of California, Idaho, and throughout the United States.”

Lickiss was released pending a sentencing hearing, which is scheduled for August 28, 2026, at 9:30 a.m. before U.S. District Judge Jon S. Tigar.  Lickiss faces a maximum statutory sentence of 20 years in prison and a $250,000 fine on the wire fraud count, and 10 years in prison and a $250,000 fine on the money laundering count.  Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

The U.S. Securities and Exchange Commission has also filed a civil enforcement action against Lickiss in the Northern District of California.

Assistant U.S. Attorney Ben Wolinsky is prosecuting the case with the assistance of Lynette Dixon.  The prosecution is the result of an investigation by the FBI and IRS-CI.  The U.S. Attorney’s Office thanks the Atlanta Regional Office of the SEC for its assistance in the investigation.

Further Information:

Case No. 4:25-CR-00202-JST

Electronic court filings and further procedural and docket information are available at https://ecf.cand.uscourts.gov/cgi-bin/login.pl. Judges’ calendars with schedules for upcoming court hearings can be viewed on the court’s website at www.cand.uscourts.gov.

Allen D. Payton contributed to this report.

Two former Antioch cops sentenced to time served, community service

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Former Antioch Police Officers Timothy Manly Williams (left) and Daniel Harris (right) were sentenced on Jan. 13, 2026, to time served. Herald file photos

No prison time; both testified against former colleagues

By Allen D. Payton

The final cases of Antioch Police Officers that were the focus of the Contra Costa DA and FBI investigations were settled last month with two former officers given sentences of time served. As a result, Daniel Harris and Timothy Manly Williams will not face any time in prison. Both testified against their former colleagues.

According to a previously published report by the U.S. Attorney’s Office Northern California District, Daniel Manly Williams pleaded guilty on Nov. 28, 2023, to destruction, alteration and falsification of records in federal investigations, obstruction of official proceedings and deprivation of rights under color of law. Manly Williams was sentenced to “six months’ custody, followed by three years of supervised release, and 100 hours of community service.

Harris pleaded guilty on Sept. 17, 2024 to conspiracy to distribute and possess with intent to distribute anabolic steroids, and possession with intent to distribute anabolic steroids as well as bank fraud. Harris was sentenced to “twelve months and a day of custody, followed by three years of supervised release, and 100 hours of community service.”

Both men’s sentencing hearings were held on Jan. 13, 2026, but no statement was issued by the U.S. Attorney’s Office Northern District of California, which prosecuted both cases.

Manly Williams’ Case Details

According to the Sentencing Memorandum for Manly Williams, “In May 2021, the Antioch Police Department (“APD”) discovered during a routine audit something surprising: their own police officer, Timothy Manly Williams, had called a subject of a wiretap he was monitoring. From all appearances, he had intentionally burned the wire and attempted to cover it up. A sprawling federal investigation would eventually result in various criminal charges against ten Antioch or Pittsburg Police Department (“PPD”) officers or employees, including Manly Williams.

“In August 2023, Manly Williams was indicted for his concealment of that call during the wiretap, which constituted criminal falsification of records and obstruction of justice, as well as for his unconstitutional destruction of a citizen’s cell phone following his then-roommate APD Officer Morteza Amiri’s release of a police canine to bite a suspect.

“By September 2023, Manly Williams had already met with the government a first time. By November 2023, he had promptly pleaded guilty to his crimes. In March 2025, he testified in the jury trial involving that same former roommate regarding another dog bite for which he was present, and Amiri’s concealment of facts surrounding that bite. He also admitted to additional criminal conduct not specifically referenced in the indictments.

“Manly Williams’ crimes were very serious, particularly given his role as a police officer sworn to uphold the law and protect his fellow citizens. However, his immediate acceptance of responsibility and cooperation with the government was also very significant, particularly given that same role, and the government accordingly moves for a downward variance pursuant to § 5K1.1 for his substantial assistance to authorities.

“Based on the nature and circumstances of the serious offenses, the defendant’s history and characteristics (including his role as a sworn police officer), the need for deterrence, and the need to avoid unwarranted sentence disparities given the sentences already imposed by this Court, as well as the government’s motion for the equivalent of a five-level downward departure pursuant to § 5K1.1, the government recommends that the Court impose a sentence of six months’ custody, followed by three years of supervised release, and 100 hours of community service. This proposed sentence is sufficient, but not greater than necessary, to achieve the goals set forth in 18 U.S.C. § 3553(a)(2).

“The government’s investigation also revealed other relevant criminal conduct, which Manly Williams admitted carrying out, including:

  • While employed as a police officer with PPD and APD, Manly Williams illegally purchased anabolic steroids, Schedule III controlled substances, from PPD Officer Patrick Berhan and APD Officer Daniel Harris.
  • While employed as a police officer with PPD and APD, Manly Williams misused confidential law enforcement databases by performing searches for the benefit of himself or friends without a proper law enforcement purpose. For instance, in approximately December 2020 he searched for the criminal history of his friend for no legitimate law enforcement purpose; and in approximately February 2021 he searched or caused law enforcement databases to be searched for warrants for no legitimate law enforcement purpose.
  • While employed as APD police officers, Manly Williams and APD Officer Morteza Amiri illegally took marijuana and/or marijuana products seized from APD law enforcement activity, including in approximately December 2020 when Amiri stated to Manly Williams, “i got a basketball size bag of weed in my trunk.” Instead of filing reports with APD on the seizures of marijuana or submitting the marijuana into evidence, Amiri and Manly Williams personally consumed the marijuana in violation of APD policy and, in at least one instance in approximately November 2020, Manly Williams arranged for the sale of such marijuana and received proceeds from its sale.
  • While employed as an APD police officer, Manly Williams illegally facilitated the removal or dismissal of traffic tickets for the benefit of himself, friends, or colleagues without a proper law enforcement purpose, including in approximately October 2020 via other APD officers in which the recipient of a ticket provided tequila bottles in exchange for those officers not appearing in court for a traffic ticket, and in approximately April 2021 at the behest of a PPD, who requested that a particular traffic ticket be disregarded.
  • While employed as an APD police officer, Manly Williams wrongfully posted law enforcement-sensitive information to his Instagram account using the story feature to “close friends” who were outside the law enforcement community.”

The Memorandum also explained, Manly Williams had no previous arrests and did not have criminal convictions resulting in any Criminal History Points, placing him in Criminal History Category I and “the government agreed with the Sentencing Guidelines calculation of the United States Probation Office.

Read more details in Manly Williams’ Sentencing Memorandum.

Harris’ Case Details

According to his Sentencing Memorandum, “Defendant Daniel Harris, a police officer with the Antioch Police Department (“APD”), began purchasing illegal anabolic steroids for his own personal use around 2019. He then began selling and distributing these Schedule III controlled substances to numerous other law enforcement officers at APD and neighboring law enforcement agencies. Among others, Harris sold illegal anabolic steroids to fellow APD officer Devon Wenger, and also agreed with Wenger to distribute them to Wenger’s friend B.M. Harris’ prolific sale and distribution of illegal anabolic steroids continued through March 2022 as he was in the process of moving from California to Texas, only coming to a halt after the FBI executed search warrants that located and seized troves of illegal anabolic steroids from a postal package destined for Harris (including steroids for Wenger’s friend), from Harris’ California residence, and from Harris’ new residence in Weatherford, Texas.

“The government’s investigation also revealed that Harris’ criminal activity while employed as an APD officer was not limited to the purchase and distribution of illegal anabolic steroids: he further committed bank fraud by falsifying information in his application for a mortgage to purchase his Texas residence.

“Harris’ crimes were particularly serious given Harris’ role as a law enforcement officer sworn to uphold the law. However, following his indictment and arrest, Harris took responsibility for his actions and pleaded guilty to all of these crimes, agreed to meet with the government and cooperate, and ultimately testified before the jury as to his and Wenger’s conduct involving the distribution of illegal anabolic steroids.

“Based on the nature and circumstances of the serious offenses, the defendant’s history and characteristics (including his role as a sworn police officer), the need for deterrence, and the need to avoid unwarranted sentence disparities given the sentences already imposed by this Court, as well as the government’s motion for the equivalent of a three-level downward departure pursuant to § 5K1.1, the government recommends that the Court impose a sentence of twelve months and a day of custody, followed by three years of supervised release, and 100 hours of community service. This proposed sentence is sufficient, but not greater than necessary, to achieve the goals set forth in 18 U.S.C. § 3553(a)(2).”

In addition the Memorandum explains, “In February 2022, Harris knowingly supplied inaccurate information to a financial institution in connection with his application for a mortgage. During this time, Harris applied for, and subsequently received, a $494,000 loan from Mortgage Financial Services LLC with the intent to defraud the financial institution to purchase a residence…in Weatherford, Texas. Harris provided false information in and omitted material facts from his application.”

Read more details in Harris’ Sentencing Memorandum.

 

Nine Oakland-based “Ghost Town” gang members sentenced for 2022 armed robberies of Bay Area businesses

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Including stealing bags of jewelry valued at $300K to $500K from San Pablo jewelry store

Will serve combined 60 years in prison

One suspect arrested 30 times since 2013

By U.S. Attorney’s Office Northern District of California

OAKLAND – Nine associates of the Oakland-based “Ghost Town” gang have been sentenced to a combined total of nearly 60 years in prison for a series of armed robberies targeting small Bay Area businesses.  The sentences were handed down by U.S. District Judge Araceli Martínez-Olguín, with the final defendant sentenced today.

The nine defendants, Demarco Barnett, 36 of Oakland; Jakari Jenkins, 34 of Stockton; Danny Garcia, 41; Garland Devonte Rabon, 30 of Mountain House; Aramiya Burrell, 35 of Oakland; Lester Andre Garnett, 34 of Tracy; Darrin Andre Hutchinson, 39 of Cherryland, CA, located between San Leandro and Hayward; Ricky Joseph, 37 of Oakland; and Keanna Alloise Smith-Stewart, 33 of West Sacramento, each pleaded guilty to one count of conspiracy to commit robbery affecting interstate commerce.  Based on their involvement, eight of the defendants also pleaded guilty to a varying number of substantive counts of robbery affecting interstate commerce.

The robberies took place in 2022.  On March 18, 2022, the co-conspirators engaged in the armed robbery of a coin and stamp store located on the tenth floor of a building in the South of Market neighborhood of San Francisco.  The co-conspirators entered the store, brandished firearms, and demanded money from the business and the two individuals who happened to be present at the time – the owner and his son. The robbers struck the head and zip-tied the hands of the owner’s son, and absconded with cash, jewelry, and coins.  Defendants Jenkins, Barnett, and Joseph were charged with and pleaded guilty to this robbery count.

The co-conspirators then struck a San Pablo jewelry store on Nov. 12, 2022.  Five co-conspirators, at least three of whom were brandishing firearms, entered the store and pretended to be customers, while two others waited outside in the getaway cars.  The co-conspirators stole bags of jewelry valued at approximately $300,000 to $500,000.

As previously reported, the pretend customers left jewelry with the operators of the store. According to the indictment, Jenkins, Barnett, and Rabon arrived at the jewelry store with at least four other co-conspirators and robbed the store of jewelry, including the jewelry that members of the gang previously had left with the store. The robbers arrived in two getaway cars—both Dodge Chargers bearing stolen license plates. Five co-conspirators, at least three of whom were brandishing firearms, entered the store while two of the co-conspirators waited outside in the getaway cars. The co-conspirators stole bags of jewelry valued at approximately $300,000 to $500,000. The indictment describes how all four defendants in the superseding indictment later wore the stolen jewelry, shared the stolen jewelry with other members of Ghost Town gang members, or otherwise made use of the stolen jewelry for their personal purposes.

Defendants Jenkins, Barnett, Rabon, Garcia and Hutchinson were charged with and pleaded guilty to this robbery count.

A third robbery occurred on Dec. 24, 2022, of a marijuana business in Oakland.  The co-conspirators arrived at the business as an employee was leaving it.  The robbers brandished weapons, directed the employee back into the building at gunpoint, demanding “budded weed” and “money.”  One of the robbers struck the employee in the head with a firearm.  The robbers searched through the employee’s pockets and stole his bank debit card.  The robbers absconded with the victim’s debit card and a bag of marijuana plant trimmings.  Defendants Jenkins, Barnett, Rabon, Burrell, Garnett, and Garcia were charged with and pleaded guilty to this robbery count.

United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.

The following chart summarizes the number of counts each defendant pleaded guilty to and the sentence each defendant received:

 

Defendant Number of Counts in Guilty Plea Sentence (months)
Demarco Barnett Conspiracy + 3 substantive robberies 114
Jakari Jenkins Conspiracy + 3 substantive robberies 96
Danny Garcia Conspiracy + 2 substantive robberies 84
Garland Rabon Conspiracy + 2 substantive robberies 75
Aramiya Burrell Conspiracy + 1 substantive robbery 82
Lester Garnett Conspiracy + 1 substantive robbery 70
Darrin Hutchinson Conspiracy + 1 substantive robbery 70
Ricky Joseph Conspiracy + 1 substantive robbery 68
Keanna Smith-Stewart Conspiracy 50
Total 709

 

In addition to the custodial time, the Court also ordered restitution in the amount of $150,338.00.

The Violent Crime Strike Force is prosecuting the case with the assistance of Yenni Weinberg.  The prosecution is the result of an investigation by the FBI and the Oakland Police Department.

Previous Arrests of Suspects

According to localcrimenews.com, the five-foot, 11-inch, 215-pound Demarco is Black and has a history of nine arrests dating back to 2014 including five times for burglary and once for hit-and-run; the five-foot, five-inch tall, 180-pound Jenkins is Black and has been arrested 30 times since 2013 including 14 times for burglary, plus, multiple times for domestic violence, drugs and gun charges; the six-foot tall, 190-pound Rabon is Black and has a history of 11 arrests since 2016 including multiple times for burglary and petty theft, as well as gun charges; the five-foot, seven-inch tall, 195-pound Burrell is Black and has been arrested nine times since 2014 including for carjacking, burglary and multiple gun and ammunition charges; the six-foot, one-inch tall, 190-pound Garnett is Black and has been arrested six times since 2015 including multiple times for burglary as well as for DUI, gun and drug charges; the five-foot, 10-inch tall, 260-pound Hutchinson is Black and has been arrested three times including once for being an addict in possession of a firearm; Joseph is Black and has three arrests including one for burglary; and the five-foot, five inch tall, 135-pound Smith-Stewart is Black and has been arrested once on April 29, 2024, but no details were available. Information about Garcia was requested. Please check back later for any updates to this report.

Further Information:

Case No. 23-cr-00191-AMO

Electronic court filings and further procedural and docket information are available at https://ecf.cand.uscourts.gov/cgi-bin/login.pl.  Judges’ calendars with schedules for upcoming court hearings can be viewed on the court’s website at www.cand.uscourts.gov.

Allen D. Payton contributed to this report.

Drone operator charged for flight near Levi’s Stadium during NFL game

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Violated temporary restrictions at Rams vs. Niners contest on Nov. 9, 2025; faces one year in prison and $100K fine

No Drone Zones this week in S.F., at Levi’s Stadium for Super Bowl LX & related events; violators face up to $75K fine, more

By Assistant U.S. Attorney Michelle Lo, PIO, U.S. Attorney’s Office, Northern District of California

SAN JOSE – A San Francisco man was charged in a federal criminal complaint for flying a drone within restricted airspace surrounding Levi’s Stadium during a National Football League (NFL) game in violation of a temporary flight restriction (TFR) imposed by the Federal Aviation Administration (FAA).

According to the criminal complaint and court documents filed today, Junwei Guo, 27, operated a drone within the airspace surrounding Levi’s Stadium on Nov. 9, 2025, during a game between the San Francisco 49ers and the Los Angeles Rams.  As court documents describe, the FAA has issued a TFR that prohibits all aircraft, including drones, from operating within a three nautical mile radius of any stadium with a seating capacity of 30,000 or more people during, among other events, regular or post-season NFL games.  The “stadium TFR” classifies the airspace defined in the restriction as “National Defense Airspace” and remains in effect for a specified time period before, during, and after the qualifying event.

The complaint alleges that Guo flew the drone as high as approximately 2,300 feet above ground level, an altitude that raises significant concerns for public safety and the potential disruption air traffic control in the area.  Guo allegedly did not register the drone with the FAA, obtain a remote pilot’s certificate with the FAA, obtain FAA authorization to fly the drone in national defense airspace, or comply with the requirements of the FAA’s recreational use exception.

United States Attorney Craig H. Missakian and FBI Special Agent in Charge Sanjay Virmani made the announcement.

Defendant is scheduled to appear in federal court in San Jose on Feb. 27, 2026, for an initial appearance.

A complaint merely alleges that a crime has been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt.  If convicted, the defendant faces a maximum sentence of one year in prison and a $100,000 fine for the charged violation of national defense airspace under 49 U.S.C. § 46307.  Any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Assistant U.S. Attorney Christina Liu is prosecuting the case with the assistance of Natachiana Burney.  The prosecution is the result of an investigation by the FBI, the Federal Air Marshal Service, and the Santa Clara Police Department.

No Drone Zone for Super Bowl LX Week

The FAA, in coordination with the FBI, has established a “No Drone Zone” for Super Bowl LX at Levi’s Stadium in Santa Clara on Feb. 8, 2026, with additional drone restrictions surrounding Levi’s Stadium and in downtown San Francisco during the days leading up to the event. Areas include the Moscone Center, The Pearl, The Ferry Building, Grace Cathedral and the Palace of Fine Arts.

Drone operators who enter restricted airspace without authorization may face fines of up to $75,000, drone confiscation and federal criminal charges, with the FBI identifying operators, seizing drones, and supporting prosecution

For more information, please visit: https://www.faa.gov/newsroom/faa-and-fbi-announce-strict-no-drone-zones-super-bowl-lx.

Further Information:

Case No. 26-cr-70083-MAG

Electronic court filings and further procedural and docket information are available at https://ecf.cand.uscourts.gov/cgi-bin/login.pl. Judges’ calendars with schedules for upcoming court hearings can be viewed on the court’s website at www.cand.uscourts.gov.

Allen D. Payton contributed to this report.

Kaiser Permanente affiliates pay $556M to resolve False Claims Act allegations

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Kaiser says allegations related to Medicare risk adjustment resolved

“The settlement agreement reached with the Department of Justice contains no admission of wrongdoing and addresses historical Medicare Advantage documentation practices.”

By U.S. Attorney’s Office, Northern District of California

SAN FRANCISCO — Affiliates of Kaiser Permanente, an integrated healthcare consortium headquartered in Oakland, California, have agreed to pay $556 million to resolve allegations that they violated the False Claims Act by submitting invalid diagnosis codes for their Medicare Advantage Plan enrollees in order to receive higher payments from the government.

The settling Kaiser Permanente affiliates are Kaiser Foundation Health Plan Inc.; Kaiser Foundation Health Plan of Colorado; The Permanente Medical Group Inc.; Southern California Permanente Medical Group; and Colorado Permanente Medical Group P.C. (collectively Kaiser).

Under the Medicare Advantage (MA) Program, also known as Medicare Part C, Medicare beneficiaries may opt out of traditional Medicare and enroll in private health plans offered by insurance companies known as Medicare Advantage Organizations, or MAOs. The Centers for Medicare & Medicaid Services (CMS) pays the MAOs a fixed monthly amount for each Medicare beneficiary enrolled in their plans. CMS adjusts these monthly payments to account for various “risk” factors that affect expected health expenditures for the beneficiary. In general, CMS pays MAOs more for sicker beneficiaries expected to incur higher healthcare costs and less for healthier beneficiaries expected to incur lower costs. To make these “risk adjustments,” CMS collects medical diagnosis codes from the MAOs. The diagnoses must be supported by the medical record of a face-to-face visit between a patient and a provider, and for outpatient visits, must have required or affected patient care, treatment, or management at the visit.

Kaiser owns and operates MAOs that offer MA plans to beneficiaries across the country. In a complaint filed in the Northern District of California in October 2021, the United States alleged that Kaiser engaged in a scheme in California and Colorado to improperly increase its risk adjustment payments. Specifically, the United States alleged that Kaiser systematically pressured its physicians to alter medical records after patient visits to add diagnoses that the physicians had not considered or addressed at those visits, in violation of CMS rules.

“More than half of our nation’s Medicare beneficiaries are enrolled in Medicare Advantage plans, and the government expects those who participate in the program to provide truthful and accurate information,” said Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division. “Today’s resolution sends the clear message that the United States holds healthcare providers and plans accountable when they knowingly submit or cause to be submitted false information to CMS to obtain inflated Medicare payments.”

“Medicare Advantage is a vital program that must serve patients’ needs, not corporate profits,” said U.S. Attorney Craig H. Missakian for the Northern District of California. “Fraud on Medicare costs the public billions annually, so when a health plan knowingly submits false information to obtain higher payments, everyone — from beneficiaries to taxpayers — loses. We have an obligation to protect the American taxpayer from waste, fraud, and abuse and we will relentlessly pursue individuals and organizations that compromise the integrity of the Medicare program.”

“The federal government supports the health care of millions of beneficiaries by paying hundreds of billions of dollars every year to Medicare Advantage Plans,” said U.S. Attorney Peter McNeilly for the District of Colorado. “Medicare relies on the accuracy of the information submitted by those plans. This resolution sends a clear message that we will hold health care plans accountable if they seek to game the system and pad their profits by submitting false information.”

“Deliberately inflating diagnosis codes to boost profits is a serious violation of public trust and undermines the integrity of the Medicare Advantage program,” said Acting Deputy Inspector General for Investigations Scott J. Lampert at the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “This outcome demonstrates HHS-OIG’s commitment to protecting Medicare through a unified approach — leveraging the expertise of our investigators, auditors, and counsel, alongside our law enforcement partners. We will continue to hold accountable any entity that seeks to compromise the integrity of the risk adjustment program.”

“Healthcare programs funded by the public are meant to support patients, not pad corporate bottom lines. False claims and the submission of fraudulent information weaken the Medicare system and place an unfair cost on American taxpayers who expect honesty and accountability,” said Special Agent in Charge Sanjay Virmani of the FBI San Francisco Field Office. “This settlement reflects the FBI’s continued commitment to holding accountable those who put profits over patients and abuse federal healthcare programs.”

The settlement announced today resolves allegations that, from 2009 to 2018, Kaiser engaged in a scheme to increase its Medicare reimbursements by pressuring physicians to add diagnoses after patient visits through “addenda” to patients’ medical records. The United States alleged that Kaiser developed various mechanisms to mine a patient’s past medical history to identify potential diagnoses that had not been submitted to CMS for risk adjustment. Kaiser then sent “queries” to its providers urging them to add these diagnoses to medical records via addenda, often months and sometimes over a year after visits. In many instances, the United States alleged, the diagnoses added by the providers had nothing to do with the patient visit in question, in violation of CMS requirements.

The United States further alleged that Kaiser set aggressive physician- and facility-specific goals for adding risk adjustment diagnoses. It alleged that Kaiser singled out underperforming physicians and facilities and emphasized that the failure to add diagnoses cost money for Kaiser, the facilities, and the physicians themselves. It also alleged that Kaiser linked physician and facility financial bonuses and incentives to meeting risk adjustment diagnosis goals.

The United States alleged that Kaiser knew that its addenda practices were widespread and unlawful. Kaiser ignored numerous red flags and internal warnings that it was violating CMS rules, including concerns raised by its own physicians that these were false claims and audits by its own compliance office identifying the issue of inappropriate addenda.

The civil settlement includes the resolution of certain claims brought in lawsuits under the qui tam or whistleblower provisions of the False Claims Act by Ronda Osinek and James M. Taylor, M.D., former employees of Kaiser. Under those provisions, private parties are permitted to sue on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned United States ex rel. Osinek v. Kaiser Permanente, et al., No. 3:13-cv-03891 (N.D. Cal.) and United States ex rel. Taylor v. Kaiser Permanente, et al., No. 3:21-cv-03894 (N.D. Cal.). The relator share of the recovery will be $95 million.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Offices for the Northern District of California and the District of Colorado, with assistance from HHS-OIG, HHS-Office of Audit Services, and the FBI.

The investigation and resolution of this matter illustrate the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at www.oig.hhs.gov/fraud/report-fraud/ or 800-HHS-TIPS (800-447-8477).

The matter was handled by Fraud Section Attorneys Braden Civins, Edward Crooke, Gary Dyal, Michael R. Fishman, Martha Glover, Seth W. Greene, Rachel Karpoff, Laurie Oberembt, and Jonathan Thrope, Assistant U.S. Attorney Michelle Lo for the Northern District of California, with the assistance of Jonathan Birch and Alan Lopez, and Assistant U.S. Attorney Kevin Traskos for the District of Colorado.

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

Kaiser Responds: Allegations Related to Medicare Risk Adjustment Resolved

On the organization’s website, Kaiser responded to the settlement with, “The settlement agreement reached with the Department of Justice contains no admission of wrongdoing and addresses historical Medicare Advantage documentation practices.

“Kaiser Permanente has reached a settlement agreement with the U.S. Department of Justice to resolve a dispute regarding certain documentation practices impacting some Medicare Advantage risk adjustment submissions between 2009 and 2018. The agreement resolves a False Claims Act lawsuit and has no admission of wrongdoing or liability. We chose to settle to avoid the delay, uncertainty, and cost of prolonged litigation.

“Multiple major health plans have faced similar government scrutiny over Medicare Advantage risk adjustment standards and practices, reflecting industrywide challenges in applying these requirements. The Kaiser Permanente case was not about the quality of care our members received. It involved a dispute about how to interpret the Medicare risk adjustment program’s documentation requirements.

“We remain unwavering in our mission to provide high-quality, affordable health care services and to improve the health of our members and the communities we serve.”

Asked if any of the affiliates operate in Northern California and if so, which ones and were any of the hospitals in Contra Costa County included, Elissa Harrington, Senior Media Relations & Public Relations Representative for Kaiser Permanente Northern California, did not respond.

Further Information:

Case Nos. 3:13-cv-03891, 3:21-cv-03894

Electronic court filings and further procedural and docket information are available at https://ecf.cand.uscourts.gov/cgi-bin/login.pl.  Judges’ calendars with schedules for upcoming court hearings can be viewed on the court’s website at www.cand.uscourts.gov.

Allen D. Payton contributed to this report.