Contra Costa Herald

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

Walnut Creek man, CEO of East Bay-based internet companies indicted on wire, securities fraud charges

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Alan K. Anderson arrested in connection with alleged scheme to raise money by creating false impression of profitability and sending false contracts to investors; companies market child-friendly services

SAN FRANCISCO – A federal grand jury has indicted Alan K. Anderson, charging him with wire fraud and securities fraud charges related to a scheme to use materially false and fraudulent pretenses to induce investors to make contributions to three businesses that were marketed as providing child-friendly internet services, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.  alananderson_indictment USDOJ

The indictment filed October 13, 2021, and unsealed today, describes how Anderson, 59, of Walnut Creek, used misrepresentations to solicit investments for the three businesses.  According to the indictment, Anderson owned and controlled Imbee, Inc., a Delaware corporation based in Walnut Creek marketed as a child-friendly social media platform; Fanlala, a California corporation marketed as a service providing internet-based music streaming for children; and Fruit Punch, a California corporation marketed as providing music-streaming service for children.  The indictment alleges that beginning as early as April of 2010 through May of 2019, Anderson raised money for his companies by making false representations and creating false documents to support his bogus claims.  For example, the indictment alleges Anderson created fraudulent income statements and profit and loss statements and misrepresented the companies’ profitability to investors and potential investors; that Anderson created and altered contracts to represent falsely that one or more of his companies would be acquired by larger companies; and that Anderson created and altered contracts to make fraudulent claims that his companies created partnerships with other existing companies.  In addition, the indictment describes how Anderson emailed an investor to falsely claim Imbee was worth $21.6 million and that the investor owned 70% of the company.

In sum, the indictment charges Anderson with four counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of securities fraud, in violation of 15 U.S.C. §§ 78j(b) & 78ff and 17 C.F.R. 240.10b-5.  Anderson was arrested today in Walnut Creek.  He will make his initial federal court appearance tomorrow at 10:30a.m., before U.S. Magistrate Judge Thomas S. Hixson, in San Francisco.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.  If convicted, each count of wire fraud carries a maximum sentence of 20 years in prison and a maximum $250,000 fine. The securities fraud charge carries a maximum 20 years of imprisonment and a $5,000,000 fine.  In addition, the court also may order a term of supervised release, fines or other assessments, and restitution, if appropriate.  However, 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.

In addition, in 2019, due to lies and misrepresentations he had made to previous shareholders, Anderson was issued a Desist and Refrain Order from the California Department of Business Oversight, preventing him from selling additional stock in Imbee, Inc. in the state “by means of any written or oral communication which includes untrue statements or omissions of material facts.”

Assistant U.S. Attorneys Christiaan Highsmith and Scott Joiner of the Office’s Corporate and Securities Fraud Section are prosecuting this case with the assistance of Claudia Hyslop, Morgan Byrne and Ralph Banchstubbs.  This prosecution is the result of an investigation by the FBI.

Allen Payton contributed to this report.

 

National Prescription Drug TAKE BACK Saturday, Oct. 23

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On Saturday, October 23, 2021, from 10 AM to 2 PM, the Contra Costa County Office of the Sheriff and the Drug Enforcement Administration (DEA) will give the public another opportunity to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs.

“This is a great way to get rid of unused prescription drugs in our homes,” said Contra Costa Sheriff David Livingston. “These drugs could fall into the wrong hands and harm family members and friends. This is an opportunity for everyone to help prevent drug addiction and overdose deaths.”

Needles and sharps cannot be accepted; only pills, patches, and liquids sealed in their original container will be accepted. Vape pens or other e-cigarette devices from individual consumers are accepted only after the batteries are removed from the devices.

The service is free and anonymous, no questions asked. Bring your pills for disposal at the following sites. COVID-19 protocols will be followed.

DROP OFF LOCATIONS:

-Office of the Sheriff Muir Station, 1980 Muir Road, Martinez (Field Operations Building)

-Office of the Sheriff Bay Station, 5555 Giant Highway, Richmond (West County Detention Facility)

-Office of the Sheriff Valley Station, 150 Alamo Plaza, #C, Alamo

-Danville Police Department, 510 La Gonda Way, Danville

-Orinda Police Department, 22 Orinda Way, Orinda (Lafayette residents can drop off prescription drugs in Orinda or Sheriff’s Office Valley Station).

The National Prescription Drug Take Back Day addresses a crucial public safety and public health issue. According to the 2019 National Survey on Drug Use and Health, 9.7 million people aged 12 or older misused prescription pain relievers in the past year. The study shows that a majority of abused prescription drugs were obtained from family and friends, often from the home medicine cabinet.

For more information about the disposal of prescription drugs or about the Take Back event, go to the DEA Office of Diversion Control website at: www.deadiversion.usdoj.gov.

7 from East Contra Costa among 13 indictments targeting East Bay drug trafficking rings

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3 from Antioch, 2 from Pittsburg, 2 from Bay Point

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

SAN FRANCISCO – Thirteen defendants were indicted 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.

Three defendants are from Antioch including 66-year-old Lorenzo Lee, 63-year-old Deborah Polk and 40-year-old Timothy Peoples. Two others from Pittsburg were indicted, 46-year-old Jeffrey McCoy and 38-year-old Deshawnte Gamboa, as well as 57-year-old Anthony Brown and 26-year-old Evan Martinez-Diaz, both of Bay Point

All thirteen defendants were charged in a single indictment which charges controlled substance offenses involving methamphetamine, heroin, fentanyl, cocaine and cocaine base. The defendants and the charges pending against them are as follows:

 

Defendant Age Residence Charges Maximum Statutory Penalty
LORENZO LEE, a/k/a “O.G.” 66 Antioch, California Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)

 

21 U.S.C. § 846

 Not less than 10 years imprisonment and up to life

 

Not less than 5 years supervised release and up to life

 

$10 million fine
Distribution of and Possession with Intent to Distribute Controlled Substances, Including Cocaine, Cocaine Base, Methamphetamine, and Heroin (Counts 4, 7, and 13-15)

 

21 U.S.C. § 841(a)(1)

 Not less than 10 years imprisonment and up to life

 

Not less than 5 years supervised release and up to life

 

$10 million fine
JEFFREY MCCOY 46 Pittsburg, California Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)

 

21 U.S.C. § 846

 Not less than 5 years imprisonment and up to 40 years imprisonment

 

Not less than 4 years supervised release and up to life

 

$5 million fine
Distribution of Controlled Substances, Including Cocaine Base, Cocaine, and Heroin (Counts 2-7 and 9)

 

21 U.S.C. § 841(a)(1)

 Not less than 5 years imprisonment and up to 40 years imprisonment

 

Not less than 4 years supervised release and up to life

 

$5 million fine
ANTHONY BROWN, a/k/a “Ant Man” 57 Bay Point, California Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)

 

21 U.S.C. § 846

 Not less than 5 years imprisonment and up to 40 years imprisonment

 

Not less than 4 years supervised release and up to life

 

$5 million fine
Distribution of Cocaine Base

 

21 U.S.C. § 841(a)(1) (Count 7)

 Not less than 5 years imprisonment and up to 40 years imprisonment

 

Not less than 4 years supervised release and up to life

 

$5 million fine
DESHAWNTE GAMBOA 38 Pittsburg, California Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)

 

21 U.S.C. § 846

 Not less than 5 years imprisonment and up to 40 years imprisonment

 

Not less than 4 years supervised release and up to life

 

$5 million fine
Distribution of Heroin (Count 9)

 

21 U.S.C. § 841(a)(1)

 Not less than 5 years imprisonment and up to 40 years imprisonment

 

Not less than 4 years supervised release and up to life

 

$5 million fine
DEBORAH POLK 63 Antioch, California Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)

 

21 U.S.C. § 846

 Not less than 5 years imprisonment and up to 40 years imprisonment

 

Not less than 4 years supervised release and up to life

 

$5 million fine
Possession with Intent to Distribute Heroin (Count 15)

 

21 U.S.C. § 841(a)(1)

 Not less than 5 years imprisonment and up to 40 years imprisonment

 

Not less than 4 years supervised release and up to life

 

$5 million fine
Maintaining a Drug-Involved Premises (Count 16)

 

21 U.S.C. § 856(a)(2)

 20 years imprisonment

 

3 years supervised release

 

$500,000 fine
EVAN MARTINEZ-DIAZ 26 Bay Point, California Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)

 

21 U.S.C. § 846

 Not less than 10 years imprisonment and up to life

 

Not less than 5 years supervised release and up to life

 

$10 million fine
Possession with Intent to Distribute Methamphetamine and Cocaine (Counts 13 and 14)

 

21 U.S.C. § 841(a)(1)

 Not less than 10 years imprisonment and up to life

 

Not less than 5 years supervised release and up to life

 

$10 million fine
MAGO AGUILAR-PACHECO 38 West Covina, California Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)

 

21 U.S.C. § 846

 Not less than 5 years imprisonment and up to 40 years imprisonment

 

Not less than 4 years supervised release and up to life

 

$5 million fine
CESAR ALVARADO 38 Desert Springs, California Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)

 

21 U.S.C. § 846

 Not less than 10 years imprisonment and up to life

 

Not less than 5 years supervised release and up to life

 

$10 million fine
Possession with Intent to Distribute Cocaine, Heroin, and Methamphetamine (Counts 11-14)

 

21 U.S.C. § 841(a)(1)

 Not less than 10 years imprisonment and up to life

 

Not less than 5 years supervised release and up to life

 

$10 million fine
JESSE LOPEZ, III 30 Fowler, California Possession with Intent to Distribute Fentanyl (Count 8)

 

21 U.S.C. § 841(a)(1)

 Not less than 10 years imprisonment and up to life

 

Not less than 5 years supervised release and up to life

 

$10 million fine
JOSE DELGADILLO, a/k/a “Tepa” 41 Fairfield, California Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Counts 1 and 10)

 

21 U.S.C. § 846

 Not less than 10 years imprisonment and up to life

 

Not less than 5 years supervised release and up to life

 

$10 million fine
MARCO DELGADILLO, a/k/a “Tonio” 39 Fairfield, California Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 10)

 

21 U.S.C. § 846

 Not less than 10 years imprisonment and up to life

 

Not less than 5 years supervised release and up to life

 

$10 million fine
LUIS TORRES-GARCIA, a/k/a “Guero” 33 Rio Dell, California Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 10)

 

21 U.S.C. § 846

 Not less than 10 years imprisonment and up to life

 

Not less than 5 years supervised release and up to life

 

$10 million fine
TIMOTHY PEOPLES, a/k/a “Tee” 40 Antioch, California Possession with Intent to Distribute Cocaine and Cocaine Base (Counts 17 and 18)

 

21 U.S.C. § 841(a)(1)

 Not less than 5 years imprisonment and up to 40 years imprisonment

 

Not less than 4 years supervised release and up to life

 

$5 million fine

The defendants arrested on April 30, 2019, were originally charged by complaint.  The complaints have been unsealed.  Eight defendants were charged in complaints that were supported by an affidavit describing the underlying investigation (the Affidavit).  In addition, a separate complaint was filed against defendant Timothy Peoples, and that complaint has been unsealed as well.

According to the Affidavit, this investigation started in 2017 and involved the DEA, the United States Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Antioch Police Department, Oakley Police Department, and Concord Police Department.  In 2017 and 2018, the investigators used informants to conduct a series of purchases of cocaine, cocaine base and heroin from JEFFREY MCCOY.  In furtherance of their investigation, the agents also obtained federal wiretap orders in 2018 and 2019 to monitor communications over telephones used by the conspirators.

According to the Affidavit, the agents also seized significant quantities of narcotics from various defendants during the investigation.  The following chart summarizes the seizures, which are discussed in more detail in the Affidavit:

DATE SEIZED CIRCUMSTANCES
5/15/2018 4 kg of heroin mixed with fentanyl and $46,000 Seized from courier after leaving LEE’s residence
8/8/2018 18 lbs of methamphetamine Seized en route to TORRES-GARCIA from Jose DELGADILLO
1/26/2019 2 kg of cocaine Seized en route to meeting point with LEE
2/9/2019 7 kg of narcotics and $104,505 Seized from courier after leaving LEE’s residence
2/9/2019 20 lbs of methamphetamine and 1 kg of cocaine Discarded from courier’s vehicle after leaving LEE’s residence

In addition, any sentence following conviction will 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.

This case was investigated and prosecuted by member agencies of the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.

Allen D. Payton contributed to this report.