Contra Costa Herald

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

Bay Point, Antioch men convicted of drug trafficking

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Following wiretap investigation into East Bay drug suppliers and significant seizures of fentanyl, methamphetamine, cocaine and cash

Third man illegal alien from Mexico; among 13 defendants indicted in 2019

Each face maximum sentence of 20 years in prison for every count on which they were convicted

Attempt to use FBI investigation of APD officers as a defense denied

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

SAN FRANCISCO – A federal jury has convicted three defendants—Luis Torres Garcia, Evan Martinez Diaz of Bay Point, and Timothy Peoples of Antioch—of multiple drug trafficking offenses following an eight-day trial, announced United States Attorney Ismail J. Ramsey and Drug Enforcement Administration (DEA), San Francisco Field Division, Special Agent in Charge Brian M. Clark. The jury convicted the defendants on all counts, rendering its verdict on February 14, 2024, after deliberating for two hours. The verdict followed a trial before the Hon. Richard Seeborg, Chief U.S. District Judge for the Northern District of California.

The three were among 13 defendants, including seven from Eastern Contra Costa County, indicted in May 2019 “on narcotics trafficking charges, announced United States Attorney David L. Anderson and Drug Enforcement Administration (DEA) Special Agent in Charge Chris D. Nielsen.  The indictment follows the arrest of five of the defendants on April 30, 2019, and the execution of search warrants at thirteen locations, including nine residences in Contra Costa County, Humboldt County, Fairfield, Suisun City and Modesto.” (See related article)

The evidence at trial included calls intercepted between April 2018 and February 2019 as part of a federal wiretap investigation into two drug suppliers in the East Bay. The intercepted calls established, among other things, that both suppliers received drugs from sources in Mexico. At trial, the government also presented evidence of several significant drug seizures including: 8.8 pounds of fentanyl and heroin in May 2018, valued at as much as $1.1 million, according to uncontested evidence at trial; 18 pounds of methamphetamine in August 2018; and 20 pounds of methamphetamine and one kilogram of cocaine in February 2019. The evidence at trial also established that law enforcement seized more than $300,000 in drug-related cash over the course of the investigation.

Martinez Diaz, 31, of Bay Point, California, was charged with three counts—conspiracy to distribute methamphetamine and cocaine, in violation of 21 U.S.C. §§ 846 and 841(a)(1) and (b)(1)(B); possession with intent to distribute methamphetamine, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(B); and possession with intent to distribute cocaine, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(B). The evidence at trial established, among other things, that on February 9, 2019, Martinez Diaz was transporting about 20 pounds of methamphetamine and one kilogram of cocaine through a residential neighborhood in Antioch, California, when he realized he was being followed by law enforcement—which knew about the drugs through intercepted calls. Martinez Diaz began driving erratically, briefly evading law enforcement and directing a co-conspirator to discard the drugs he was carrying in the bushes on a residential street. A short time later law enforcement located the drugs, which evidence at trial established had street retail values of $177,860 (methamphetamine) and $40,000 (cocaine). After Martinez Diaz was stopped by police and released with a traffic citation, he was intercepted on a call telling his supplier that he had seen law enforcement and discarded the drugs to avoid arrest. (See judge’s opinion)

Peoples, 44, of Antioch, California, was arrested after law enforcement officers found cocaine in his home, and charged with two counts of possession with intent to distribute cocaine, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(B)–(C). Evidence presented at trial showed that Peoples was a regular customer of an Antioch-based cocaine wholesaler from whom he bought some 10.5 pounds of cocaine for more than $120,000 in a 90-day period. Peoples used the codeword “babies” to refer to ounce quantities of cocaine. The evidence at trial established that Peoples then sold cocaine to his own customers in smaller quantities and used his proceeds to buy expensive cars.

Attempt to Use FBI Investigation of Antioch Police Officers to Defend Himself Denied

According to the judge’s opinion, “In the course of the federal law enforcement investigation in this case, the Drug Enforcement Agency (“DEA”) and Bureau of Alcohol, Tobacco, and Firearms (“ATF”) were assisted by officers from the Antioch Police Department in executing search warrants and evidence collection, the bulk of which occurred in 2018 and 2019. Since then, several Antioch police officers have been accused of, and indicted for various crimes, including civil rights violations and wire fraud.” (See related articles here and here)

During the court case, “Peoples insisted that the federal case against the Antioch officers was relevant because two members of the Antioch Police Department accused of misconduct were present at the search of Peoples’ home on April 30, 2019.”

The opinion continued, “The defendants previously filed a discovery motion to compel production of impeachment material related to Antioch police officers who assisted with the DEA and ATF investigation of the defendants in the instant case. That motion was denied.”

“An evidentiary hearing was set to determine threshold matters in relation to the motion. Having  considered the parties’ briefs, witness testimony, and admitted exhibits from the hearing, the government’s motion is granted, and the defendants are prohibited from referencing the federal investigation of any Antioch police officers.”

The opinion provided background to Peoples’ claim and the judge’s denial.

“Anticipating the issue would reappear at trial, the government filed MIL No. 12 to prevent the defendants from referencing Antioch police misconduct in the presence of the jury without first establishing relevance for fear that this would result in undue prejudice to the government. Dkt. (Docket) 489. In response, Peoples suggested that witnesses and the DEA-6 report regarding the search of Peoples’ home, authored by DEA Agent Mikhail Job, identified Antioch officers accused of misconduct as having participated in the April 30, 2019, search of Peoples’ residence.

Shortly before the pretrial conference, Peoples submitted a supplemental opposition to MIL No. 12 with information he and the government had just learned. Dkt. 521. In that supplemental opposition, Peoples contended that Agent Job had identified Antioch Officer Morteza Amiri, who has since been indicted on wire fraud charges and civil rights violations, as having entered Peoples’ residence alone for five to ten minutes along with his police dog after the occupants had been cleared out and before the official search began. Peoples also suggested that Antioch Officer Kyle Smith, who allegedly exchanged racist texts with other Antioch officers, joined the search of Peoples’ home. The government filed a supplemental response contending that Agent Job received erroneous information from the DEA case agents and had mistakenly named the wrong Antioch officers on his DEA-6 report. Dkt. 528. According to the government, Officers Amiri and Smith were not present at the search of Peoples’ home but were participating in the contemporaneous search of Defendant Lorenzo Lee’s residence. At the pretrial conference, the threshold question of whether Amiri was present at the search of Peoples’ home remained unresolved. The only potential relevance of the Antioch officers’ misconduct turned on whether  Amiri and/or Smith were present at Peoples’ residence such that Peoples could infer the police planted evidence.”

Furthermore, “Peoples failed to establish that a jury could reasonably find that Amiri was present at Peoples residence on April 30, 2019 by a preponderance of evidence. At the evidentiary hearing, both sides admitted several witnesses and exhibits, and the government’s evidence was considerably more persuasive. The government’s witnesses included several law enforcement agents who corroborated their version of the events on the day in question. The testimony of two Antioch officers, Kevin Tjahjadi and Brayton Milner, who participated in the search of Peoples’ residence, was particularly persuasive. Both stated unequivocally that neither Amiri nor Smith joined in that search. The Antioch Police Department CAD reports regarding the search of Peoples’ residence further supported this version of events, identifying only Tjahjadi and Milner as the participating officers.”

Torres Garcia, 38, an illegal alien from Mexico, residing in Rio Dell, California, was charged with conspiracy to distribute methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(a)(1) and (b)(1)(A). The evidence at trial showed that Torres Garcia was a Humboldt County drug trafficker, who used the nickname “Guero.” Torres Garcia received methamphetamine shipments on credit from a Fairfield, California-based drug supplier. On August 8, 2018, the Fairfield supplier attempted to send about 18 pounds of methamphetamine—valued at $158,000—to Torres Garcia in Humboldt County. DEA agents and the Sonoma County Sheriff’s Office intercepted the drug courier and seized the drugs during a vehicle stop on Highway 101 near Healdsburg, California. In February 2019, the DEA tracked Torres Garcia to a meeting in Windsor, California, where Torres Garcia delivered about $13,800 in cash to a courier for his drug supplier. Although he was present throughout the trial and listened to closing arguments, Torres Garcia absconded before the jury handed down its verdict; he is now a fugitive. (See judge’s opinion)

According to the judge’s opinion, “Luis Garcia-Torres, defendant, an alien who had previously been deported or removed from the United States  to Mexico on or about May 19, 2016, was found in the Eastern District of Texas, said defendant not having received the express consent of the Attorney General and the Secretary of Homeland Security, the successor, pursuant to United States Code, Title 6, for re-application for admission to the United States, all in violation of 8 U.S.C. § 1326(a).”

Sentencing Hearing June 11, 2024

Judge Seeborg scheduled a sentencing hearing for June 11, 2024. Torres Garcia faces a maximum sentence of life imprisonment and a minimum sentence of 10 years in prison. Martinez Diaz and Peoples each face a maximum sentence of 20 years in prison for every count on which they were convicted. However, the defendants’ sentences will be imposed only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Assistant U.S. Attorneys Daniel Pastor and Joseph Tartakovsky prosecuted the case with the assistance of Erick Machado. This prosecution is the result of an investigation led by the DEA Oakland Resident Office, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives; Homeland Security Investigations; U.S. Customs and Border Protection; U.S. Postal Inspection Service; the police departments in Fairfield, Antioch, Concord, and Oakland; the Sonoma County Sheriff’s Office; and the California Highway Patrol.

Allen D. Payton contributed to this report.

 

APPS felony arrest in Richmond seizure of hundreds of illegal weapons, approximately one million rounds of ammunition

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Guns seized in Richmond arrest. Photos: CA DOJ

Including machine guns, assault rifles, silencers, suspected grenades

By Office of California Attorney General

CONTRA COSTA COUNTY — California Attorney General Rob Bonta announced today, Thursday, February 15, 2024, the arrest of a suspect in Richmond with a large cache of illegal firearms, including assault weapons, high-capacity magazines, and approximately one million rounds of ammunition. The suspect is alleged to be legally barred from owning weapons.

“This arrest demonstrates exactly why the Armed and Prohibited Persons System is vital for the safety of our communities,” said Attorney General Bonta. “In our efforts to retrieve guns from a prohibited individual, we found hundreds of allegedly illegal weapons and approximately one million rounds of ammunition. I am grateful for our Bureau of Firearms agents’ and local law enforcement partners’ work in getting these illegal weapons out of the hands of this prohibited individual.”

On January 31, 2024, agents from the California Department of Justice’s (DOJ) Bureau of Firearms (BOF) Contra Costa Anti-Violence Support Effort (CASE) Task Force assisted by the BOF Dublin office and Contra Costa County Probation Officers served a search warrant at the suspect’s residence in Richmond. During the search, several suspected grenades were discovered, and the Walnut Creek Police Department Bomb Squad and Travis Air Force Base Bomb Squad were asked to respond, and the grenades were found to be inert. After a thorough search of the residence, DOJ agents seized approximately 11 military-style machine guns, 133 handguns, 37 rifles, 60 assault rifles, 7 shotguns, 20 silencers, 4 flare guns, 3,000 large capacity magazines, approximately one million rounds of miscellaneous caliber ammunition, and dozens of rifle receivers and pistol frames. (See video.)

In 2006, California became the first state in the nation to establish a system for tracking firearm owners who fall into a prohibited status. The APPS database works to identify individuals who lawfully procured firearms and later became prohibited from owning or possessing them. In general, prohibited persons in APPS include individuals who were convicted of a felony or a violent misdemeanor, were placed under a domestic violence or other restraining order, or suffer from serious mental illness.

The 2022 APPS Report was released in April of 2023 and the 2023 APPS Report will be released in March 2024. DOJ’s BOF serves the people of California through education, regulation, and enforcement actions regarding the manufacture, sale, ownership, safety training, and transfer of firearms and ammunition. BOF staff are leaders in providing firearms expertise and information to law enforcement, legislators, and the general public in a comprehensive program to ensure legitimate and responsible firearm possession and use by California residents. BOF is looking to hire additional special agents and more information on assessments for relevant job openings can be found on DOJ’s website at oag.ca.gov/careers/exams.

 

Lafayette attorney indicted in the DC Solar billion dollar Ponzi scheme

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Faces 23 counts of conspiracy to commit wire & bank fraud, bank fraud, wire fraud

7 residents from Martinez, Clayton, Pleasant Hill, Walnut Creek & Vacaville convicted, fined and sentenced

Former Concord- and Benicia-based company

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

SACRAMENTO, Calif. — On Oct. 5, 2023, a federal grand jury returned a 23‑count indictment against Ari J. Lauer, 59, of Lafayette, charging him with conspiracy to commit wire and bank fraud, bank fraud, and wire fraud affecting a financial institution, for his role in the biggest criminal fraud scheme in the history of the Eastern District of California, U.S. Attorney Phillip A. Talbert announced.

Lauer is an attorney licensed to practice law in California, and from approximately 2009 to January 2019, he was outside counsel to DC Solar and provided legal and business advice concerning DC Solar’s operations. The indictment was unsealed today following Lauer’s arrest.

According to court documents, between 2011 and 2018, DC Solar manufactured mobile solar generators that were mounted on trailers. The company touted the versatility and environmental sustainability of the generators and claimed that they were used to provide emergency power to cellphone towers and lighting at sporting and other events. A significant incentive for investors were generous federal tax credits due to the solar nature of the generators. Jeff Carpoff, 52, Paulette Carpoff, 49, both of Martinez, and their co-conspirators solicited investors to invest in the generators in large multimillion-dollar transactions using a variety of fraudulent techniques.

A key part of the fraud was that investors would never actually take possession of the generators. Instead, DC Solar typically leased those generators back from the investors, and claimed to sublease them to third parties to generate revenue. In reality there was very little actual third-party rental demand for the generators, yet when Lauer and the other co-conspirators learned this, they continued to represent falsely to investors that the rental market for the generators was robust.

In June 2012, Lauer, Jeff Carpoff, and others met to discuss the failure to generate third-party lease revenue sufficient to meet their financial obligations to the investors. The conspirators agreed to conceal that lack of third-party lease revenue from current and prospective investors, by, among other things, making periodic transfers of investor money from one account to another while misrepresenting the flow of funds as third-party lease revenue. Lauer and other members of the conspiracy created a circular payment system they referred to as “re-rent.” In 2014, they created a “re-rent agreement,” backdating the document to 2011, and used it to explain the large sums of money being transferred from one account to another. In fact, the real source of money was new investor money, which was being used to pay obligations to existing investors. The indictment further alleges that Lauer and other members of the conspiracy prepared sublease agreements with “concealed addendums” that materially altered the terms of the contracts. They used the sublease agreements to defraud investors.

Between March 2011 and Dec. 18, 2018, investors collectively invested approximately $759,400,000 and several financial institutions and other investors transferred collectively $152,700,000 to DC Solar as part of related transactions for the purchase and lease of generators. In total, DC Solar closed transactions with investors that contributed an aggregate of more than $912 million to purchase generators. Those transactions purportedly involved approximately 17,000 generators, at approximately $2.5 billion in purported value.

During the conspiracy, approximately 94% to 95% of the supposed lease revenue on the books was actually intercompany transfers disguised as new investor money. In truth, third-party end-user demand for generators never exceeded 5% of the revenue that was claimed. (Learn more about the DC Solar scheme)

This case is the product of an investigation by the Federal Bureau of Investigation, IRS Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. Assistant U.S. Attorney Audrey Hemesath is prosecuting the case.

On Nov. 9, 2021, Jeff Carpoff was sentenced to 30 years in prison and ordered to pay $790,600,000 in restitution for conspiracy to commit wire fraud and money laundering. His wife Paulette Carpoff pleaded guilty to conspiracy to commit an offense against the United States and money laundering. She was sentenced on June 28, 2022, to 11 years and three months in prison.

On Nov. 16, 2021, Joseph W. Bayliss, 48, of Martinez, was sentenced to three years in prison and ordered to pay $481,300,000 in restitution for securities fraud and conspiracy in connection with the DC Solar scheme. On April 12, 2022, DC Solar CFO Robert A. Karmann, 57, of Clayton, was sentenced to six years in prison and ordered to pay $624 million. On May 31, 2022, Alan Hansen, 50 of Vacaville, was sentenced to eight years in prison for conspiracy to commit an offense against the United States and aiding and abetting money laundering. Ryan Guidry, 48, of Pleasant Hill, was sentenced on Jan. 31, 2023, to six years and six months in prison and ordered to pay $619,415,950 in restitution for to conspiracy to commit an offense against the United States and aiding and abetting money laundering.

Ronald J. Roach, 55, of Walnut Creek, pleaded guilty to criminal offenses related to the fraud scheme and is scheduled to be sentenced on Nov. 14, 2023. Roach faces a maximum statutory penalty of 10 years prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

lauer_indictment.pdf

Allen D. Payton contributed to this report.

 

CEO of Richmond non-profit sentenced to 17 years in prison for bank and wire fraud, witness tampering, more

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Provided homes for parolees, probationers; used multiple aliases

Sought $34,655,437 in fraudulent PPP loans during COVID

Jury found former religious leader guilty on 44 felony counts

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

OAKLAND – Attila Colar, aka Dahood Sharieff Bey, aka Sharieff Dahood Bey, aka Sharieff Pasha, aka David Lee, aka Georgi Petrakov, was sentenced to serve 204 months (17 years) in prison after being convicted of forty-four (44) felonies including conspiracy, bank fraud, wire fraud, aggravated identity theft, false statements to a bank, destruction of property to prevent a search, possession of a firearm as a felon, making a false tax return, obstruction, and witness tampering. The sentence was handed down by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge.

Colar, 51, of Richmond, Calif., was convicted of the crimes by a jury on June 23, 2023, after a three-week trial. Colar is the former Chief Executive Officer of All Hands on Deck, a Richmond, Calif., company that held itself out as providing a residential reentry home for probationers, parolees, homeless persons, and persons with mild mental illness. In finding him guilty of the sundry crimes, the jury concluded Colar carried out multiple schemes to defraud, including defrauding organizations that placed residents at his company’s transitional housing facilities and defrauding several lenders that were participating in the Paycheck Protection Program (PPP). The jury also found that Colar attempted to destroy evidence, obstructed the FBI’s and grand jury’s investigations into his crimes, and tampered with a witness by attempting to concealing the witness while law enforcement was taking steps to execute a material witness order.

According to opengovus.com the organization was incorporated in Hercules and is listed as a “Minority-Owned”, and “Black American Owned” non-profit in 2015 but the registration has expired. The only officer listed is Jamlia Pasha as Manager.

According to transitionalhousing.org, “All Hands on Deck Ink is a clean and sober living environment that offers a structured living program for recovering individuals, Homeless Veterans, Parolees, and Individuals with Mental Health Conditions. The environment creates good habits and healthy outlooks that will lead their residents to positive results. Offer all of the residents access to a clean and stable environment, life skill courses, 12 step program, educational opportunities, business and economic training, and resource referrals. There is a sliding scale fee. Accept self pay, vouchers and other housing rent assistance programs. Residents will have access to internet, washer and dryer, cable, a healthy meal, programs, resources and more. As accepting new residents now, call their housing managers today for placement.” It has a location at a home in El Sobrante. That information was last updated on July 13, 2023.

“In the wake of a national crisis, the government established programs, including the Paycheck Protection Program, to ease the pain inflicted by a global pandemic,” said Ismail J. Ramsey, United States Attorney for the Northern District of California. “Colar took this opportunity to defraud the government, while also defrauding several other initiatives intended to help the homeless, newly released prisoners, and those with drug problems, to name just a few of his victims. This sentence should serve as a warning that this office will pursue with vigor those who seek to line their own pockets by defrauding government efforts to address our communities’ needs.”

“Colar is now facing the consequences for his attempt to steal from a taxpayer-funded program designed to offer crucial relief to those businesses affected during the pandemic,” said Robert K. Tripp, Special Agent in Charge, San Francisco Field Office, Federal Bureau of Investigation. “We are proud to have worked in close coordination with our federal partners to ensure justice prevailed in this case.”

“This sentencing sends a clear warning that you will be brought to justice if you defraud the federal government of pandemic relief funds,” said Jon Ellwanger, Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “We are proud to have worked with our federal law enforcement partners and the U.S. Attorney’s Office to hold Mr. Colar accountable for his crimes.”

“Abusing SBA’s pandemic relief programs that are intended to provide critical relief to small businesses is unconscionable.” said SBA OIG’s Western Region Special Agent in Charge Weston King. “This sentencing further showcases that those who fraudulently take advantage of federal government programs will face justice for their selfish deeds. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”

“Mr. Colar attempted to defraud the U.S. government by filing multiple false tax documents to further his Paycheck Protection Program scheme. Along the way, he harmed the members of the community those funds are designed to aid and protect,” said IRS-Criminal Investigation Special Agent in Charge Darren Lian of the Oakland Field Office. “This sentencing reinforces that people who abuse the U.S. tax system and victimize taxpayers will be held accountable. IRS Criminal Investigation agents work closely with multiple agencies to help ensure those who choose to break the law are caught and punished. I would like to thank the United States’ Attorney’s Office’s and its federal partners for working together to achieve a just result.”

“When individuals corruptly obstruct the due administration of the Internal Revenue Code and file documents under false pretenses, they defraud and steal funds from taxpayer-funded programs intended to assist small businesses. TIGTA will always pursue these individuals and ensure they are prosecuted to the fullest extent of the law,” stated Special Agent in Charge Rod Ammari. “I want to thank our law enforcement partners and the U.S. Attorney’s Office for their joint efforts to hold these criminals accountable for their actions.”

Evidence at trial showed that starting in late 2018, Colar engaged in a scheme to defraud, among others, GEO Reentry, which provided treatment and supervision programs for adult probationers, parolees, and pretrial defendants in residential, in-custody, and non-residential reentry centers for the California Department of Corrections and Rehabilitation (CDCR). Specifically, in or about 2019, Colar fraudulently induced GEO Reentry to refer parolees to All Hands on Deck using falsified fire inspection clearance reports, a false letter of recommendation, false security clearance documents, and false and misleading information about its staff.

Additional evidence demonstrated that in April and June of 2020, Colar engaged in a second scheme to defraud lenders participating in the PPP lending plan authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act was designed to provide emergency financial assistance to the millions of Americans who were suffering from the economic effects caused by the COVID-19 pandemic. Pursuant to the CARES Act, the SBA managed the PPP lending plan. Trial evidence established Colar submitted multiple loan applications on behalf of All Hands on Deck to lenders that were false and misleading. For example, the applications substantially overstated the number and payroll of All Hands on Deck employees—while Colar’s loan applications stated All Hands on Deck had approximately 73 to 81 employees, the business had, in fact, perhaps other than himself, no salaried employees.

Colar was also convicted of offenses related to the submission of multiple fraudulent loan applications in the name of other companies. The evidence demonstrated Colar hastily revived two dormant companies, and then submitted loan applications from the PPP lending plan for the bogus businesses. To carry out this scheme to defraud, Colar used, without legal authority, the names and identities of two persons living in his residential reentry facility. Colar falsely represented that the residents were “CEO”s of companies with hundreds of employees with million-dollar payrolls.

In all, the evidence at trial showed that Colar submitted a total of 16 fraudulent loan applications to the PPP lending plan seeking approximately $34,655,437 in PPP loans.

Colar also was convicted of obstruction and witness tampering relating to the investigations into his crimes. Colar has been found guilty of destroying documents during a search of his home, lying to the FBI about a firearm, falsifying records produced to the grand jury, interfering with the representation by counsel of a material witness by impersonating the witness’s Power of Attorney, coaching a witness to falsely state that the witness was the CEO of one of Colar’s bogus companies that submitted fraudulent loan applications, and concealing a witness in multiple hotels and other locations in the Bay Area to forestall or prevent the witness from providing testimony in the federal grand jury.

In sum, Colar was convicted of forty-four (44) federal criminal offenses for his conduct. The convictions include the following: one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; one count to commit conspiracy to commit bank fraud and wire fraud, in violation of 18 U.S.C. § 1349; two counts of bank fraud, in violation of 18 U.S.C. § 1344; sixteen counts of wire fraud, in violation of 18 U.S.C. § 1343; eight counts of aggravated identity theft, in violation of 18 U.S.C. § 1028A; two counts of false statement to a bank, in violation of 18 U.S.C. § 1014; one count of possession of a firearm by a felon, in violation of 18 U.S.C. § 922(g); one count of destruction of property to prevent a search or seizure, in violation of 18 U.S.C. § 2232(a); one count of obstruction of justice, in violation of 18 U.S.C. § 1512(c)(2); two counts of falsification of records in a federal investigation, in violation of 18 U.S.C. § 1519; six counts of making a false tax return, in violation of 26 U.S.C. § 7206; one count of conspiracy to tamper with a witness, in violation of 18 U.S.C. § 1512(k); one count of tampering with a witness, in violation of 18 U.S.C. § 1512(b)(1); and one count of tampering with a witness, in violation of 18 U.S.C. § 1512(b)(2).

In addition to the prison term, Judge Gilliam also ordered Colar to serve 60 months (five years) of supervised release, to begin after his prison term. Restitution will be determined at a later date. Colar is currently in federal custody and will begin serving his prison term immediately.

According to an Oct. 3, 2020 ABC7 News report, “Colar was the leader of a Black Muslim temple in Oakland and a group that was a spinoff of Your Black Muslim Bakery, after the leader of the bakery was arrested and later convicted of ordering the murder of Oakland journalist Chauncey Bailey.” He “was convicted in 2015 and sentenced to five years in state prison for submitting bogus documents to win security contracts with Alameda County, the Los Angeles Department of Water and Power and the Housing Authority of the City of Los Angeles.”

Assistant U.S. Attorneys Barbara J. Valliere, Adam A. Reeves, and Ross D. Mazer are prosecuting the case with the assistance of Paralegal Specialist Laurie Worthen and Legal Assistant Kathy Tat. The prosecution is the result of an investigation by the FBI, IRS-Criminal Investigation, Office of Inspector General for the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, Internal Revenue Service: Criminal Investigation, Treasury Inspector General for Tax Administration, and Office of Inspector General for the U.S. Small Business Administration.

Allen D. Payton contributed to this report.

 

Danville woman sentenced to 22 months in federal prison for embezzling $1.7 million from Men’s Warehouse

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Gina Lonestar in happier times. Source: Her Facebook page posted May 27, 2022.

Former VP of Construction, Maintenance and Facilities at parent company Tailored Brands invented fake vendor and submitted false invoices over eight-year period

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

OAKLAND – Gina Suzanne Lonestar was sentenced to 22 months in federal prison in connection with a wire fraud scheme pursuant to which she embezzled over $1.7 million from her former employer, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Hon. Jon S. Tigar, United States District Judge.

Lonestar, 52, of Danville, Calif., pleaded guilty to the charge on May 19, 2023. According to her plea agreement, Lonestar admitted that, in December 2010, she devised a scheme to create a fake vendor to defraud Men’s Wearhouse and later Tailored Brands (Men’s Wearhouse’s parent company) of money by submitting and approving false invoices for the fake vendor to the accounts payable department. Lonestar created a document stating the vendor was a sole proprietorship associated with a family member and then began submitting and approving invoices falsely claiming the vendor was performing work at Men’s Wearhouse stores throughout California, such as inspections and handyman work. Lonestar admitted that she submitted and approved false invoices in the name of the fake vendor for approximately eight years, defrauding her employer of over $1.7 million, which was paid to her joint checking account. Lonestar admitted that the vendor did not exist and the family member with whom she co-owed the company performed none of the work for which she provided invoices.

At the time Lonestar devised the scheme, she was a Director in the Facilities Department of Men’s Wearhouse. During the relevant time period she was promoted to Senior Director of Facilities and Corporate Services and then to Vice President of Construction, Maintenance, and Facilities. In all of her roles, she had the authority to approve invoices for work done by vendors. Lonestar’s scheme ended in 2019 when the company discovered the conduct during an internal audit.

On September 8, 2022, a federal grand jury indicted Lonestar charging her with six counts of wire fraud, in violation of 18 U.S.C. § 1343. Pursuant to her plea agreement, Lonestar pleaded guilty to one count and the court dismissed the remaining counts during her sentencing hearing.

In addition to the 22-month sentence, Judge Tigar ordered Lonestar to pay a $1,736,216 forfeiture money judgment and to serve three years of supervised release which will begin after she leaves prison. Judge Tigar ordered that Lonestar begin serving her sentence on January 5, 2024. In addition, Judge Tigar scheduled a hearing for December 1, 2023, to determine issues regarding restitution.

The case is being prosecuted by Assistant United States Attorney Noah Stern with assistance from Elizabeth Kim and Kathleen Turner. The prosecution is the result of an investigation by the FBI.

Alamo telecommunications consultant pleads guilty to violating sanctions on Iran

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70-year-old faces 20-25 years in prison, as much as $1.25 million in fines

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

OAKLAND – The U.S. Attorney’s Office today announced charges against and guilty pleas by Farhad Nafeiy for violating sanctions by exporting software upgrades for commercial-grade telecommunications servers to the Islamic Republic of Iran (“Iran”), and for tax evasion. The plea was accepted by the Honorable Araceli Martínez-Olguín, United States District Judge. The announcement was made by United States Attorney for the Northern District of California Ismail J. Ramsey, Assistant Attorney General Mathew G. Olsen, Homeland Security Investigations (HSI) Special Agent in Charge Tatum King, and Special Agent in Charge of the IRS Criminal Investigation’s Oakland Field Office Darren Lian.

Nafeiy, 70, of Alamo, Calif., was charged with and pleaded guilty to a violation of the International Emergency Economic Powers Act (“IEEPA”). Under IEEPA, the President of the United States is granted authority to address unusual and extraordinary threats to the national security, foreign policy, or economy of the United States. Under that law, the President has issued orders prohibiting certain activities and transactions with Iran and the Government of Iran. The Department of Treasury’s Office of Foreign Assets Control (OFAC) has issued regulations, referred to as the Iranian Transactions and Sanctions Regulations (ITSR), implementing those orders. These sanctions on Iran generally prohibit, among other things, exporting or facilitating the export of U.S.-origin products to Iran and providing services to Iran.

Nafeiy obtained licenses—or approvals—from OFAC for advising non-Iranian telecommunications companies on doing business with Iran. However, those licenses did not authorize Nafeiy to provide any hardware, software, or technology directly to Iran. Nafeiy exceeded his OFAC licenses, thereby violating the ITSR and IEEPA, by directly providing software upgrades to telecommunications equipment in Iran. Nafeiy admitted in his plea agreement that he knew he exceeded these licenses when he did so. In his plea agreement, Nafeiy further admitted that the total amount of sales of such software upgrades to Iran was approximately $400,000. Nafeiy separately was charged with, and admitted to, evading his federal income taxes, and specifically not paying income tax on some of the proceeds of these sales.

On August 10, 2023, Nafeiy was charged by information with one count of violating IEEPA, in violation of 50 U.S.C. § 1705, and one count of tax evasion, in violation of 26 U.S.C. § 7201. Pursuant to the plea agreement, he pleaded guilty to both charges.

Judge Martínez-Olguín scheduled Nafeiy’s sentencing hearing for January 29, 2024. For the 50 U.S.C. § 1705 violation, Nafeiy faces a maximum statutory prison term of 20 years, a maximum fine of $1,000,000, and restitution, if appropriate. For the tax evasion charge, Nafeiy faces a maximum prison term of five years, a maximum fine of $250,000, and restitution of at least $79,124 to the IRS. As part of any sentence, the court may also order Nafaiy to serve a period of supervised release and to pay additional assessments, however, the court will impose a sentence only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

The case is being prosecuted by Assistant U.S. Attorney Benjamin Kingsley and Trial Attorney David Ryan of the National Security Division’s Counterintelligence and Export Control Section, with the assistance of Kathleen Turner of the U.S. Attorney’s Office. Former Trial Attorney Elizabeth Abraham provided valuable assistance in prior phases of the prosecution. The prosecution is the result of an investigation by Homeland Security Investigations and the Internal Revenue Service-Criminal Investigation.

 

CA Attorney General announces $49 million settlement with Kaiser for illegal disposal of hazardous & medical waste, patient info

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Kaiser responds

OAKLAND – In partnership with six district attorneys, California Attorney General Rob Bonta on Friday, Sept. 8, announced a settlement with Kaiser Foundation Health Plan, Inc., and Kaiser Foundation Hospitals (collectively “Kaiser”) resolving allegations that the healthcare provider unlawfully disposed of hazardous waste, medical waste, and protected health information at Kaiser facilities statewide. As part of the settlement, Kaiser will be liable for a total of $49 million and be required to take significant steps to prevent future unlawful disposals.

“The illegal disposal of hazardous and medical waste puts the environment, workers, and the public at risk. It also violates numerous federal and state laws,” said Bonta. “As a healthcare provider, Kaiser should know that it has specific legal obligations to properly dispose of medical waste and safeguard patients’ medical information. I am pleased that Kaiser has been cooperative with my office and the district attorneys’ offices, and that it took immediate action to address the alleged violations.”

The settlement is the result of undercover inspections conducted by the district attorneys’ offices of dumpsters from 16 different Kaiser facilities. During those inspections, the district attorneys’ offices reviewed the contents of unsecured dumpsters destined for disposal at publicly accessible landfills, finding hundreds of items of hazardous and medical waste (aerosols, cleansers, sanitizers, batteries, electronic wastes, syringes, medical tubing with body fluids, and pharmaceuticals) and over 10,000 paper records containing the information of over 7,700 patients. The California Department of Justice subsequently joined the district attorneys and expanded the investigation of Kaiser’s disposal practices further throughout the state. In response to this joint law enforcement investigation, Kaiser immediately hired a third-party consultant and conducted over 1,100 trash audits at its facilities in an effort to improve compliance. Kaiser also modified its operating procedures to improve its handling, storage, and disposal of waste.

Kaiser is headquartered in Oakland, California and operates over 700 facilities statewide, making it the largest healthcare provider in California. Kaiser provides healthcare to approximately 8.8 million Californians, as well as members of the public who seek emergency care from Kaiser facilities. In announcing the settlement, Attorney General Bonta was joined by the district attorneys of Alameda, San Bernardino, San Francisco, San Joaquin, San Mateo, and Yolo counties.

“As a major corporation in Alameda County, Kaiser Permanente has a special obligation to treat its communities with the same bedside manner as its patients,” said Alameda County District Attorney Pamela Price. “Dumping medical waste and private information are wrong, which they have acknowledged. This action will hold them accountable in such a way that we hope means it doesn’t happen again.”

“I am confident that this case shows the residents of San Bernardino County that our Office will not stand by as hospitals and other medical clinics dispose of medical waste including biohazards, hazardous waste and personal health information into our landfills, jeopardizing medical confidentiality,” said San Bernardino County District Attorney Jason Anderson. “Deputy District Attorney’s Stephanie Weissman and Supervising Deputy District Attorney Doug Poston dedicated years of their time and expertise to ensure the residents of our County are protected from the mishandling of medical waste and Kaiser policies are improved to safeguard the public moving forward.”

“My office takes patient privacy and the protection of the environment very seriously,” said San Francisco District Attorney Brooke Jenkins. “Hazardous waste, medical waste, and confidential patient information must be disposed of properly. When it is not, we will not hesitate to take action. Protecting patient privacy and the environment is just as important as protecting public safety.”

“This resolution further protects the health and safety of the residents of San Joaquin County and the state as a whole,” said San Joaquin County District Attorney Ron Freitas. “The unlawful disposal of hazardous medical waste has no place in this county, or any county, and the mishandling of confidential patient information will not be tolerated. The settlement with Kaiser places the appropriate safeguards to ensure that this never happens again.”

“As the largest healthcare provider in the state, Kaiser has an extraordinary responsibility to the public and to its own patients to ensure that hazardous waste, potentially infectious human waste materials, and highly sensitive patient health information are handled according to state laws and not sent to municipal landfills not equipped to handle those wastes,” said San Mateo County District Attorney Stephen M. Wagstaffe. “Our Environmental Unit continues to work with San Mateo County environmental regulators and colleagues across the state to investigate and prosecute entities that break the law and endanger the environment.”

As part of the settlement, Kaiser:

  • Will pay $47.250 million. That amount includes $37,513,000 in civil penalties; $4,832,000 in attorneys’ fees and costs; and $4,905,000 for supplemental environmental projects, primarily environmental prosecutor training.
  • Must pay an additional $1.75 million in civil penalties if, within 5 years of the entry of the final judgment, Kaiser has not spent $3.5 million at its California facilities to implement enhanced environmental compliance measures to ensure compliance with relevant provisions of the law that are alleged to have been violated.
  • Must retain an independent third-party auditor — approved by the Attorney General’s Office and the district attorneys — who will: perform no less than 520 trash compactor audits at Kaiser’s California facilities to help ensure that regulated wastes (including items containing protected health information) are not unlawfully disposed of; and conduct at least 40 programmatic field audits each year, for a period of five years after entry of the final judgment, to evaluate Kaiser’s compliance with policies and procedures designed to ensure compliance with applicable laws related to hazardous waste, medical waste, and protected health information.

Kaiser’s unlawful disposals are alleged to violate California’s Hazardous Waste Control Law, Medical Waste Management Act, Confidentiality of Medical Information Act, Customer Records Law, and Unfair Competition Law. The disposals are also alleged to violate the federal Health Insurance Portability and Accountability Act of 1996, known as HIPAA.

In 2014, the California Department of Justice filed a lawsuit against Kaiser after it delayed notifying its employees about an unencrypted USB drive that was discovered at a Santa Cruz thrift store. The USB drive contained over 20,000 employee records. Kaiser paid $150,000 in penalties and attorneys’ fees, and agreed to comply with California’s data breach notification law in the future, provide notification of any future breach on a rolling basis, and implement additional training regarding the sensitive nature of employee records. In addition, Kaiser has been the subject of prior enforcement actions by local prosecutors for mismanagement of regulated wastes.

A copy of the complaint and proposed stipulated judgment, which details the aforementioned settlement terms and remains subject to court approval, can be found here and here.

Kaiser Issues Statement in Response

Kaiser responded with the following statement:

“Kaiser Permanente is committed to the health and well-being of our members, patients, employees, physicians, and the communities we serve, which includes proper waste disposal and protecting the confidentiality of member and patient information. Millions of people receive care and support in our hundreds of medical facilities across California each year and we have well-established policies and procedures for disposing of the different kinds of resulting waste items.

About six years ago we became aware of occasions when, contrary to our rigorous policies and procedures, some facilities’ landfill-bound dumpsters included items that should have been disposed of differently. Upon learning of this issue, we immediately completed an extensive auditing effort of the waste stream at our facilities and established mandatory and ongoing training to address the findings. All Kaiser Permanente staff and physicians in California take this required annual training. We also introduced specialized equipment, instructions, and receptacles placed closest to where waste is generated to ensure all types of waste are disposed of properly, and we introduced more environmentally friendly products to enhance our long-standing environmental compliance measures.

We take this matter extremely seriously and have taken full responsibility to acknowledge and, in cooperation with the California Attorney General and county district attorneys, correct our performance regarding landfill-bound trash where it may have fallen short of our standards. We dedicated many hours to identifying and closing gaps to strengthen our regulated waste disposal program and are confident in our ability not only to meet the monitoring and reporting requirements of this settlement, but to comply with the numerous requirements that apply to the different kinds of waste that result from caring for millions of Californians.

In order to address this issue, Kaiser Permanente developed a three-step approach that includes:

  1. Assessment of hospitals, medical office buildings, and other facilities to identify the types of waste generated and to provide the right receptacles so that it is as easy and convenient as possible for our staff and physicians to dispose of waste in the appropriate receptacles;
  2. Worksite rounding to observe disposal techniques and to provide just-in-time training to ensure compliance with proper practices; and
  3. Training, which every employee and physician in California is required to participate in annually, on proper waste disposal processes.

We are not aware of body parts being found at any time during this investigation. There were isolated examples of what appeared to be small amounts of tissue debris.”

 

Four Martinez cops placed on leave, suspect dead following shooting at cannabis dispensary

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During early Friday morning response; assault on officer reported

By Martinez Police Department

On August 18, 2023, around 3:27 a.m., the Martinez Police Department received a report of a video alarm at Velvet, a cannabis dispensary, located at 4808 Sunrise Drive. While enroute, officers were advised of multiple subjects at the business along with two vehicles.

Officers arrived on scene around 3:32 a.m. and one of the vehicles, described as a white SUV, fled the scene. Officers broadcast that shots were fired and there was an assault on an officer. The second vehicle attempted to flee and then crashed into a fire hydrant. The two occupants of the vehicle were transported to the hospital.

Additional law enforcement agencies responded to secure the scene. The Martinez Police Department initiated an investigation with the Contra Costa County District Attorney’s Office in accordance with the countywide protocol for officer-involved shootings. One officer is receiving treatment at the hospital for what is believed to be a minor injury.

Based on the investigation, it is believed that four Martinez police officers discharged their firearms in this incident. The four officers have been placed on administrative leave as per department policy.

One of the civilians in the incident who was transported to the hospital is deceased. In accordance with Assembly Bill 1506 (https://oag.ca.gov/ois-incidents), the Martinez Police Department notified the California Department of Justice (DOJ). The CADOJ is leading the investigation and will independently review the officer-involved shooting.

The investigating agencies have responded with extensive resources to determine exactly what took place. The area where the incident occurred remained closed while crime scene investigators collect evidence. The officers involved were wearing body-worn cameras and footage is being reviewed as part of the investigation.

The investigation is in its early stages and ongoing. Our understanding of the incident may change as more individuals are interviewed and evidence is collected and analyzed.

If you have information regarding this incident, please contact Investigations at 925-372-3450.

 

 

9 Antioch, Pittsburg officers charged with civil rights violations, steroid distribution, wire fraud, destroying evidence

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Antioch and Pittsburg police officers indicted and arrested on Thursday, Aug. 17, 2023. Current and former Antioch officers arrested on Thursday, August 17, 2023, are (top L-R) Community Service Officer Samantha Genoveva Peterson, Officers Morteza Amiri and Eric Allen Rombough. (center L-R) former officers Devon Christopher Wenger, Timothy Allen Manly Williams and Daniel James Harris. Photos: APD (bottom L-R) Former Pittsburg officers Amanda Carmella Theodosy (aka Nash), Ernesto Juan Mejia-Orozco and Patrick James Berhan. Photos: Pittsburg PD (No photo of Oakland Housing Authority officer Brauli Rodriguez Jalapa could be located).

Press conference held on arrests, indictments of 3 current, 3 former APD officers, 3 former PPD officers and 1 Oakland Housing Authority officer

Three Antioch officers charged with civil rights crimes for their alleged conspiracy to use unnecessary force in deploying munitions and a police K-9

“This is a complicated investigation. These always are.” – U.S. Attorney Ismail Ramsey – “Every defendant is assumed innocent until proven guilty in a court of law. No defendant is charged with all the charges in all the conduct.”

By Allen D. Payton

U.S. Attorney for the Northern California District Ismail Ramsey in his first press conference in San Francisco and Special Agent in Charge of the FBI San Francisco Division Robert Tripp, shared information about the 10 current and former Antioch and Pittsburg Police officers who were arrested this morning on multiple charges. It follows the four indictments issued by the federal Grand Jury, yesterday and which were unsealed, today.

Joining Ramsey and Tripp at the press conference were Contra Chief Assistant District Attorney Simon O’Connell and several members of the prosecution team, Laura Vartain, Chief of the U.S. Department of Justice Northern California Special Prosecution Unit including Alethea Sargent, Assistant U.S. Attorney, Criminal Division, Eric Cheng Assistant U.S. Attorney, Special Prosecutions, and Assistant U.S. Attorney Ajay Krishnamurthy.

Indicted and arrested are current Antioch officers Morteza Amiri, Eric Allen Rombough and Community Service Officer Samantha Genoveva Peterson, former APD officers Daniel James Harris, Devon Christopher Wenger and Timothy Allen Manly Williams, as well as former Pittsburg officers Amanda Carmella Theodosy (aka Nash), Patrick James Berhan and Ernesto Juan Mejia-Orozco, and Oakland Housing Authority officer Brauli Rodriguez Jalapa.

After a year-and-a-half investigation by the FBI and Contra Costa DA’s Office for what were referred to as “crimes of moral turpitude”, committed by the current and former officers were finally described. Ramsey said they include conspiracy to violate civil rights, conspiracy to commit wire fraud, distributing anabolic steroids, obstruction and civil rights violations.

U.S. Attorney for Northern California Ismail Ramsey holds a press conference with and Special Agent in Charge of the FBI San Francisco Division Robert Tripp, (2nd from left), Assistant U.S. Attorney, Special Prosecutions Eric Cheng, Contra Chief Assistant District Attorney Simon O’Connell and Assistant U.S. Attorney Ajay Krishnamurthy. Screenshot of NBC Bay Area News video.

“Every defendant is assumed innocent until proven guilty beyond a reasonable doubt in a court of law. No defendant is charged with all the charges in all the conduct,” he stated.

Ramsey then described the four indictments against the officers.

The first he labeled the “college degree benefits fraud indictment” in which “officers sought to defraud the Antioch and Pittsburg Police Departments. They hired people to attend classes and take exams for them. They conspired…to reap the financial benefits without putting in the work.”

“Two defendants are charged with distributing anabolic steroids,” Ramsey continued. “One of the two defendants destroyed evidence. Those are former Antioch officers Daniel Harris and Devon Wenger.

“One defendant is charged with obstruction indictment,” he continued. “A police officer destroyed, altered evidence to obstruct a federal investigation…monitored a wiretap. He used his own personal phone to call a defendant in the wiretap.” That refers to former Antioch officer Timothy Allen Manly Williams.

Ramsey said he is “Also charged with a civil rights violation in confiscating a citizen’s phone and destroying it to conceal evidence.”

The fourth he referred to as the “deprivations of rights indictment…a 29-page indictment of three officers in the Antioch Police Department.” They include the “improper deployment of canines and weapons to harm individuals in and around Antioch. They boasted about illegal use of force and texted photos of injured individuals,” Ramsey said. That indictment includes current officers Morteza Amiri, Eric Allen Rombough and Wenger.

He referred to them as “a group of officers who acted is if they were above the law. They tried to escape scrutiny by failing to submit truthful reports and deploy body warn cameras.”

Asked later about that claim since Antioch officers didn’t have body worn cameras during the time period of their alleged crimes, DOJ Nor Cal spokesman Abraham Simmons responded, “I am certain he is referencing the allegations actually in the indictments. I can look again at the indictments.”

“Officers take an oath,” Ramsey continued during the press conference. “The indictments paint a picture, today that demonstrate officers who have violated that oath.

“All officers indicted have been arrested,” he added and thanked those involved including CCDA Becton.

FBI Special Agent in Charge Tripp said, they “arrested nine subjects. All are or were associated with the Pittsburg or Antioch Police Departments. Three were current employees who had been placed on administrative leave.”

The arrests were made in “the Bay Area, Hawaii and Texas” and “more than 100 law enforcement employees participated,” he stated.

Tripp said it was the result of “more than two years of painstaking work.”

“The FBI treated these arrests like any other operation,” he said. “We used the same techniques and assessed the risks.

“This case has been the SF Field Office’s top priority,” Tripp continued. “We use the term color of law for the shorthand of someone using their official position to undermine public confidence in the law and undermine the fundamental rights of our citizens.”

“Color of law violations will not be tolerated. Not all indictments are color of law violations. Any breach of the public trust is unacceptable. Nobody is above the law,” he stated.

In response to a question from a member of the media “will more indictments be coming down,” Ramsey said, “The investigation is still continuing,” Ramsey said.

Asked “can we expect any state charges?” he said. “We’re here to comment on our charges. The investigation on the federal side is continuing. We are now at the point where we have indictments returned and individuals in custody.”

Asked where the court cases will be held Ramsey said, “This case is venued in Oakland. There have been numerous hearings today. The schedule for additional appearances is being worked out.”

Asked about those arrested in Texas and Hawaii Ramsey said, “The arraignments for those will happen in the districts where they were arrested. They then have to…be brought to here, to address the charges on this case.”

“Civil rights violations under the color of law are a priority…of my office and the FBI’s,” he stated

Asked about the text messages he responded, “As laid out in the indictment there’s a series of text messages…in which officers are bragging about violating citizens’ civil rights and texting photos of citizens. We believe these are egregious and has led to these charges. This is a complicated investigation. These always are. We have four of the ASA’s who worked tirelessly on this case. They’re prepared to take steps necessary to prosecute.”

“Civil rights violations are a unique priority of ours. I don’t want you to think steroid distribution or wire fraud are not serious. They’re federal violations,” Ramsey added.

Press Release Offers Additional Details in Indictments

A press release labeled “Bad Apples Indictment” was issued later Thursday with additional details about the indictments:

At the press conference, U.S. Attorney Ramsey referred to the first indictment as the “college degree benefits fraud indictment.” According to the indictment, six defendants engaged in a conspiracy to defraud police departments out of taxpayer dollars, including the Antioch and Pittsburg Police Departments, by claiming they had earned college credits toward degrees when, instead, they paid others to attend classes and take exams for them. Specifically, beginning in June of 2019, Officer Patrick James Berhan of the Pittsburg Police Department utilized a person identified as “Individual 1” to complete multiple college courses on his behalf.  The courses were credited toward Berhan’s completion of a Bachelor of Science degree in Criminal Justice. Berhan allegedly received a degree and then applied for and received reimbursements and increases to his pay from Pittsburg Police Department.  Further, the indictment alleges Berhan “promoted Individual 1’s services” and “benefited from payments received by Individual 1 in furtherance of the scheme.”  The indictment describes how five other members of the police departments retained Individual 1 to complete similar coursework from the university.  Each paid money to Individual 1, obtained a degree based on the fraudulent coursework, and applied for benefits including reimbursements and increases in pay from their law enforcement employer.

The second indictment charges two defendants with conspiring to distribute anabolic steroids.  The indictment describes how Officers Daniel Harris and Devon Wenger, both of the Antioch Police Department, allegedly conspired illegally to distribute the drugs to an unnamed customer.  The indictment also alleges that Harris possessed and attempted to possess the drugs, and that Wenger attempted to delete evidence of the scheme from his cellular phone prior to handing the phone over to law enforcement officers.

The third indictment charges a single defendant, Timothy Allen Manly Williams (Manly), also then with the Antioch Police Department, with three charges—two involving alleged interference with a wiretap investigation and the third involving the illegal seizure and destruction of a telephone.  The indictment alleges that on March 23, 2021, Manly was assigned to a “wire room” where, pursuant to a court order, he was supposed to monitor communications between a target and others who contacted the target by telephone.  While monitoring the target, Manly allegedly used his personal cellphone, dialed a special code to ensure his number would not appear to others, and called a target of the investigation.  After dialing the number, Manly also designated his call to the target to be “non-pertinent” ensuring the 14-second conversation would not be recorded.  Manly also allegedly made entries on the wire logs to suggest that the call he made resulted in no answer and no audio.  The indictment further alleges that on May 6, 2021, Manly was on the scene when another officer deployed a police dog when arresting a person. Upon seeing a witness using a cellular telephone to record the aftermath of the incident, Manly allegedly seized the witness’s telephone and destroyed it.

The fourth indictment charges three Antioch police officers—Morteza Amiri, Eric Rombough, and Devon Wenger—with conspiracy against rights and deprivation of rights under color of law.  The 29-page indictment describes how the defendants allegedly communicated with each other and others about using and intending to use excessive force against individuals in and around Antioch.  The uses of excessive force included deployment of a K9, deployment of a 40mm “less lethal” launcher, and other unnecessary violence.  Further, the indictment alleges that the defendants deployed uses of force as “punishment” to subjects “beyond any punishment appropriately imposed by the criminal justice system,” and allegedly made repeated reference to or suggestion of violating the civil rights of their victims.  Examples in the indictment include the following:

  • On July 24, 2019, Amiri allegedly pulled over a bicyclist, identified as A.A., for failing to have lights on after dark. The indictment alleges that “[i]n the course of apprehending A.A., Amiri punched him multiple times; K9 Purcy then bit A.A. in the arm, injuring him.”  Amiri then shared pictures of the victim’s wounds with other Antioch police officers who exchanged text messages including: “Yeah buddy good boy pursy,” “F[expletive] that turd,” and Amiri later stated “Detectives already called PRCS and got him a 45 day violation and we are gonna leave it at that so i don’t have to go to court for the bite. easy.”  In response to a question from another officer about what cut the dog’s face, Amiri responded, “that’s a piece of the suspect’s flesh lol.”
  • On October 8, 2020, Amiri allegedly sent a text message identifying a transient living in Antioch identified as M.Z. stating “anyone that finds him gets code [a free meal or beverage]. This f[expletive] stole my mail and was trying to open accounts under my name.” Wenger responded “Lets beat his f[expletive] ass I’m down after work morty” According to the indictment, the recipients of Amiri’s message located M.Z. later that evening. Amiri then arrived on the scene, shoved M.Z. against a wall and threatened to kill him. The indictment also alleges that a few months later Amiri texted another group of officers in reference to M.Z., “few months ago, I tracked him down and dragged him to the back of a car to ‘discuss’ the matter,” and “putting a pistol in someone’s mouth and telling them to stop stealing isn’t illegal. . .  it’s an act of public service to prevent further victims of crimes”
  • On May 5, 2021, Rombough accompanied other Antioch police officers who responded to a report that transients were living inside a privately-owned unit. While responding, Rombough and another officer located a couple lying on a bed inside a room.  Rombough deployed a 40mm less lethal launcher at one of the persons on the bed, hitting them in the chest and knocking them off the bed.
  • On August 24, 2021, Rombough accompanied other Antioch police officers as they executed a search warrant at a residence in Antioch. Officers located a subject—identified as J.W.—inside a locked bedroom holding a video game controller while sitting on an air mattress, with a video game on a television screen.  W. removed a pair of headphones and raised his hands as officers, including Rombough, entered the room.  One officer took J.W.’s left arm to arrest him as four other officers surrounded J.W.  As the other officer held J.W.’s left arm on the bed, Rombough deployed the 40mm less lethal launcher at J.W., injuring him.

The indictment describes several other incidents of excessive force as well as the collection and sharing of pictures to memorialize acts of violence and the collection by defendant Rombough of spent munitions to commemorate his deployment of the 40mm launcher.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.

The indictments charge the following defendants with crimes as follows:

U.S. Attorney for Northern California Ismail Ramsey holds a press conference with and Special Agent in Charge of the FBI San Francisco Division Robert Tripp, (2nd from left), Assistant U.S. Attorney, Special Prosecutions Eric Cheng, Contra Chief Assistant District Attorney Simon O’Connell and Assistant U.S. Attorney Ajay Krishnamurthy. Screenshot of NBC Bay Area News video.

In addition, as part of any sentence following conviction, the court may order defendants to serve an additional term of supervised release to begin after a prison term as well as additional fines, and restitution, if appropriate.  Any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

The case is being prosecuted by the Special Prosecutions Section and Oakland Branch of the United States Attorney’s Office. The prosecution is the result of an investigation by the FBI and the Office of the District Attorney of Contra Costa County.

Further Information:

Case #s:

23 CR 264 JSW – 23-cr-00264 JSW 08162023 indictment

DEFENDANT(S)

PATRICK JAMES BERHAN,

MORTEZA AMIRI,

AMANDA CARMELLA THEODOSY,

a/k/a AMANDA CARMELLA NASH,

SAMANTHA GENOVEVA PETERSON,

ERNESTO JUAN MEJIA-OROZCO, and

BRAULI RODRIGUEZ JALAPA

INDICTMENT

18 U.S.C. § 1349 – Conspiracy to Commit Wire Fraud (one count)

18 U.S.C. § 1343 – Wire Fraud (six counts)

18 U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c) – Forfeiture Allegation

23 CR 267 YGR – 23-cr-00267 YGR 08162023 indictment

DEFENDANT(S)

TIMOTHY ALLEN MANLY WILLIAMS

INDICTMENT

18 U.S.C. § 1519 – Destruction, Alteration, and Falsification of Records in Federal Investigations;

18 U.S.C. § 1512(c)(2) – Obstruction of Official Proceedings;

18 U.S.C. § 242 – Deprivation of Rights Under Color of Law

23 CR 268 HSG – 23-cr-00268 HSG 08162023 indictment

DEFENDANT(S)

DANIEL JAMES HARRIS and

DEVON CHRISTOPHER WENGER

INDICTMENT

21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(E)(i) – Conspiracy to Distribute and Possess with Intent to Distribute Anabolic Steroids;

21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(E)(i) – Attempted Possession with Intent to Distribute Anabolic Steroids;

21 U.S.C. §§ 841(a)(1) and (b)(1)(E)(i) – Possession with Intent to Distribute Anabolic Steroids;

18 U.S.C. § 1519 – Destruction, Alteration, and Falsification of Records in Federal Investigations

21 U.S.C. § 853 – Forfeiture Allegation

23 CR 269 AMO – 23-cr-00269 AMO 08162023 indictment

DEFENDANT(S)

MORTEZA AMIRI,

ERIC ALLEN ROMBOUGH, and

DEVON CHRISTOPHER WENGER

INDICTMENT

18 U.S.C. § 241 – Conspiracy Against Rights (one count)

18 U.S.C. § 242 – Deprivation of Rights Under Color of Law (seven counts)

18 U.S.C. § 1519 – Destruction, Alteration, and Falsification of Records in Federal Investigations (one count)

A copy of this press release will be placed on the U.S. Attorney’s Office’s website at www.usdoj.gov/usao/can.

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.

“Police officers promise to enforce laws for the protection of the public and to protect the rights of the accused,” said U.S. Attorney Ramsey. “That is the job.  The indictments describe officers who are alleged to have violated this oath. When this happens, the damage done to the public trust cannot easily be calculated.  This office will not rest until all persons who have engaged in this sort of behavior are apprehended and prosecuted.”

“This case is one of the highest priorities for the San Francisco Field Office,” said FBI Special Agent in Charge Tripp. “Law enforcement officers bear a tremendous responsibility to police our communities lawfully in keeping with the constitution, and we must always be true to that guiding principle. I want to extend my sincere appreciation to the FBI agents, analysts, and law enforcement partners who worked tirelessly on this case and whose efforts culminated in the operations today.”

 

Report: FBI arrests Pittsburg, Antioch cops under investigation in Thursday morning raids

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For possible “crimes of moral turpitude” following federal grand jury indictment; task force set up in parking lot of John Muir Health in Brentwood

By Allen D. Payton According to an exclusive report by the Mercury News, the Antioch and Pittsburg police officers were arrested by the FBI during raids, Thursday morning, August, 17, 2023. The officers have been under investigation by both the FBI and Contra Costa DA’s Office since early 2022. That followed an indictment issued by the Federal Grand Jury in San Francisco on Wednesday. The details of the indictment have yet to be revealed but are expected to during a press conference scheduled for 3:30 p.m. today.

FBI task force drew a map of homes in the John Muir Health – Brentwood parking lot in preparation for their raids on Thursday, Aug. 17, 2023. Photo source chose to remain anonymous

Task Force Set Up at John Muir Health in Brentwood

According to a source who chose to remain anonymous, the FBI task force set up in the parking lot of John Muir Health’s Brentwood Outpatient Center on Balfour Road near Highway 4. There were about 20 cars carrying agents, two riot vehicles, and a Life Flight helicopter on stand-by the source shared. As previously reported, the investigation was for alleged “crimes of moral turpitude” defined as “conduct that shocks the public conscience or, which does not fall within the moral standards held by the community.” The names of the officers and details of their alleged crimes were inadvertently revealed in a report issued by the DA’s Office, earlier this year, that was not properly redacted. The officers are being investigated “for violations of the following federal offenses; Title 21, United States Code, Sections 841(A), distribution, and possession with intent to distribute a controlled substance; Section 843(b) illegal use of the mail in furtherance of narcotic trafficking; Title 18, USC, 1503 Obstruction of Justice; Section 846, attempt and conspiracy to commit the foregoing offenses; Section 241, Conspiracy for two or more persons to agree to injure, threaten, or intimidate a person in the United States in the free exercise or enjoyment of any right or privilege; and Section 242, a crime for a person acting under color of any law to willfully deprive a person of a right or privilege protected by the Constitution or laws of the United States. The CCCDAO is investigating these officers for assault under the color of authority, bribery, embezzlement, possession of controlled substances (steroids) for sale, knowing or offering any false or forged instruments, possession, and sales of assault weapons, and attempt and conspiracy to commit the foregoing offenses. The CCCDAO is also reviewing whether any of the above listed individuals have violated Penal Code (PC) section 745, the Racial Justice Act, which prohibits the use of race, ethnicity, or national origin by a law enforcement officer in pursuit of a conviction or sentence.” The names of the officers under investigation by the FBI and DA revealed in the improperly redacted report were included in the following information: “On 03/22/2022, the Honorable Presiding Judge Rebecca C. Hardie, Judge of the Superior Court of California, Contra Costa County, signed a search warrant under seal authored by CCCDAO Senior Inspector Larry J. Wallace for the seizure and search of the following cellular telephones: Pittsburg Police Officer Willie Glasper, (redacted phone number); Pittsburg Police Officer Brauli Rodriguez Jalapa, (redacted phone number); Pittsburg Police Officer Ernesto Juan Mejia-Orozco, (redacted phone number); Pittsburg Police Officer James Robert Anderson, (redacted phone number); Antioch Police Officer Ben C. Padilla, (redacted phone number); Antioch Police Officer Eric Rombough, (redacted phone number); Antioch Police Officer Devon Wenger, (redacted phone number); and Antioch Police Officer Andrea Rodriguez, (redacted phone number). The search warrants and affidavits were signed under seal and filed with the Martinez Superior Court. On 03/22/22, the Honorable Laurel Beeler, United States Magistrate, Northern District of California, signed a federal search warrant under seal authored by FBI Special Agent (SA) Thuy Zoback for the seizure of the following cellular telephones: Pittsburg Police Officer Armando Montalvo; Pittsburg Police Officer Patrick Berhan; (now former) Antioch Police Officer Timothy Manly Williams; Antioch Police Officer Morteza Amiri, Antioch Police Officer Nicholas Shipilov; Antioch Police Officer Eric Rombough; Antioch Police Officer Daniel Harris; and Antioch Police Officer Calvin Prieto. The purpose of the search warrants were to seize electronic communications; such as, but not limited to the following: records and communications indicating the possession, use, purchase, sale, distribution, transfer, theft, and/or concealment of controlled substances, including books, receipts, notes, ledgers, pay and owe sheets, correspondence, records noting price, quantity, date and times when controlled substances were purchased, possessed, transferred, distributed, sold or concealed. On 03/23/2022, sworn law enforcement members of the CCCDAO and the FBI retrieved the above listed cellular telephones from the above listed sworn law enforcement members of the Pittsburg and Antioch Police Departments. Law enforcement members from the CCCDAO and the FBI downloaded/extracted electronic cellular data communications from the above listed cellular telephones. A thorough review of the electronic cellular data communications took place for the past year.” Which officers were arrested Thursday morning has not yet been confirmed. The Antioch officers have been on paid administrative leave since the beginning of the investigation. Antioch Police Officers Association Issues Statement The Antioch Police Officers APOA issued a brief statement posted on their Facebook page Thursday morning. It reads, “The APOA has learned that several of our current and former members have been indicted by the FBI at the culmination of their investigation into members of the Antioch and Pittsburg Police Departments. We are saddened to learn of what has happened and look forward to the legal process playing itself out. We are committed to still providing quality service to the citizens of Antioch and also providing support for our members who are still working through this difficult time. APOA Media Team” Mayor Thorpe Says It’s “A Dark Day” In a post on his campaign website, Antioch Mayor Lamar Thorpe issued the following statement about the matter: “Today is a dark day in our city’s history, as people trusted to uphold the law, allegedly breached that trust and were arrested by the FBI. As our city absorbs this tragic news, we must come together as one. Today’s actions are the beginning of the end of a long and arduous process. To those that have accused me and others of being anti-police for seeking to reform the Antioch Police Department, today’s arrests are demonstrative of the issues that have plagued the Antioch Police Department for decades. Seeking to reform the Antioch Police Department is not anti-police, it is pro our residents, and pro officers that have served and continue to serve with honor.’ -Office of the Mayor”

Efforts to reach APOA’s attorney, Mike Rains, for comment were unsuccessful prior to publication time. Please check back later for any updates to this report.