Contra Costa Herald

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

Pleasant Hill man charged in San Francisco tow company insurance fraud case

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Jaime Respicio, operator Jose Badillo and two other co-defendants accused of submitting fraudulent auto insurance claims for multiple vehicles

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

SAN FRANCISCO – Jose Vicente Badillo, Kirill Afanasyev, Jason Naraja, and Jaime Respicio have been charged in an indictment with various crimes related to two schemes to defraud auto insurance companies, announced United States Attorney Ismail J. Ramsey; FBI Special Agent in Charge Robert K. Tripp; and IRS Criminal Investigation (IRS-CI) Acting Special Agent in Charge Michael Mosley of the Oakland Field Office. The case has been assigned to the Hon. James Donato, United States District Judge.

According to an indictment returned by a federal grand jury on August 20, 2024, Afanasyev, 36, Badillo, 28, both of San Francisco, and Respicio, 38, of Pleasant Hill, California, conspired to defraud an auto insurance company by submitting a fraudulent insurance claim on a wrecked car that Afanasyev purchased in May 2019. The Indictment alleges that, when Afanasyev bought the car, it was undrivable, with significant front-end damage. Nevertheless, the Indictment says, Respicio obtained an insurance policy on, and later took title to, the car before Afanasyev, posing as Respicio, falsely reported to the insurance company in August 2019 that Respicio had been in a single-car accident in it in San Francisco. The Indictment further alleges that Afanasyev made materially false statements and misrepresentations to the insurance company, after which the insurance company processed and approved the claim and sent Respicio an insurance reimbursement check for $47,856.34. The Indictment alleges that Badillo participated in this scheme to defraud by agreeing to falsely document that his towing company had towed the wrecked car from the purported accident location.

The Indictment alleges that Afanasyev, Badillo, and Naraja, 37, of Hayward, California, engaged in a second conspiracy and scheme to defraud another insurance company by submitting a fraudulent insurance claim regarding an accident involving multiple vehicles that had been staged by Badillo in San Mateo County. Specifically, the Indictment alleges that Badillo and Afanasyev planned the staged accident in which Badillo loaded a vehicle carrier with four vehicles (several of which were inoperable or had pre-existing damage) and purposefully drove them off the road on Guadalupe Canyon Parkway in San Mateo County in August 2019. The Indictment alleges that, after Badillo reported this “accident” to his insurance company, Badillo, Afanasyev, Naraja, and another individual all made false or misleading statements to an insurance company representative. The Indictment alleges that the insurance company ultimately denied Badillo’s claim as fraudulent but nevertheless paid one of Badillo’s towing companies $5,210 for its recovery, towing, and storage of vehicles involved in the staged accident.

The Indictment also alleges that, at the time of the offenses in 2019, Badillo owned and/or controlled at least two companies engaged in the business of towing vehicles: Jose’s Towing, LLC, and Auto Towing, LLC, both of which operated out of San Francisco.

In the first conspiracy and scheme to defraud, Afanasyev, Badillo, and Respicio are charged with one count each of (i) conspiracy to commit mail fraud and wire fraud, in violation of 18 U.S.C. § 1349; (ii) mail fraud, in violation of 18 U.S.C. §§ 1341 and 2; and (iii) wire fraud, in violation of 18 U.S.C. §§ 1343 and 2. Afanasyev and Respicio are also charged with one count of money laundering, in violation of 18 U.S.C. §§ 1957 and 2.

In the second conspiracy and scheme to defraud, Afanasyev, Badillo, and Naraja are charged with (i) one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; and (ii) four counts of wire fraud, in violation of 18 U.S.C. §§ 1343 and 2.

Naraja and Respicio were arrested in Hayward and Pleasant Hill, respectively, on August 27, 2024, and released on $50,000 bonds at their initial appearances on August 28, 2024. Naraja is next scheduled to appear in court on August 29, 2024, at 10:30 a.m., before the Hon. Lisa J. Cisneros for arraignment and identification of counsel. Respicio is next scheduled to appear in court on September 5, 2024, at 10:30 a.m., before the Hon. Alex G. Tse for arraignment and identification of counsel. Badillo was previously arrested and made his initial appearance in another insurance fraud case on August 8, 2024. He is scheduled to appear before the Hon. Lisa J. Cisneros for arraignment and identification of counsel in both cases on August 30, 2024, at 10:30 a.m. Afanasyev’s initial appearance and arraignment has been scheduled for September 9, 2024, at 10:30 a.m. before the Hon. Alex G. Tse.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Afanasyev, Badillo, and Respicio each face a maximum sentence of 20 years in prison, and a fine of $250,000 or twice the gross gain or loss, whichever is greater, plus restitution, if appropriate, on each of Counts 1 through 3, which charge mail fraud, wire fraud, and conspiracy to commit the same, in violation of 18 U.S.C. §§ 1341, 1343, 1349, and 2. Afanasyev and Respicio face a maximum sentence of 10 years in prison, and a fine of $250,000 or twice the amount of criminally derived property involved in the transaction, whichever is greater, plus restitution, if appropriate, on Count 4, which charges money laundering, in violation of 18 U.S.C. §§ 1957 and 2. Similarly, Afanasyev, Badillo, and Naraja each face a maximum sentence of 20 years in prison, and a fine of $250,000 or twice the gross gain or loss, whichever is greater, plus restitution, if appropriate, on each of Counts 5 through 9, which charge wire fraud and conspiracy to commit the same, in violation of 18 U.S.C. §§ 1343, 1349, and 2. The court also may order an additional term of supervised release to begin after any prison term as part of the sentence for any or all of the defendants. 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.

This prosecution is part of an Organized Crime Drug Enforcement Task Forces (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 Kyle F. Waldinger and Galen A. Phillips are prosecuting the case with the assistance of Amala James and Carolyn Jusay Caparas. The prosecution is the result of a lengthy investigation by the FBI and IRS-CI. The U.S. Attorney’s Office, the FBI, and IRS-CI appreciate the assistance and support of the San Francisco Police Department in this insurance fraud investigation.

 

 

Former Antioch Police officer convicted by federal jury of conspiracy, wire fraud

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Former Antioch Police Officer Morteza Amiri was convicted by a federal jury on Thursday, Aug. 8, 2024. Herald file photo

Morteza Amiri is last of six Antioch, Pittsburg officers convicted of conspiring to defraud their departments by obtaining payments and raises for university degrees they paid a third party to complete

Information provided on cases for four other former Antioch officers

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

OAKLAND – On Thursday, August 8, 2024, a federal jury convicted police officer Morteza Amiri of wire fraud and conspiracy to commit wire fraud in a scheme to obtain pay raises from the City of Antioch Police Department for a university degree he paid someone else to obtain in his name, announced United States Attorney Ismail J. Ramsey and FBI San Francisco Special Agent in Charge Robert K. Tripp.  The felony verdicts follow a four-day trial before United States Senior District Judge Jeffrey S. White.  Amiri is the sixth officer to be convicted in the conspiracy to commit wire fraud, along with former Pittsburg Officers Patrick Berhan, Amanda Theodosy a/k/a Nash and Ernesto Mejia-Orozco, former Antioch Community Service Officer Samantha Peterson and former Pittsburg Police and Oakland Housing Authority Officer Brauli Rodriguez Jalapa. (See related article)

Former officers who pleaded guilty this year: Pittsburg officers Amanda Carmella Theodosy (aka Nash), Ernesto Juan Mejia-Orozco and Patrick James Berhan. Photos: Pittsburg PD. Former Antioch Police Community Service Officer Samantha Peterson. Photo: Antioch PD. (No photo of Oakland Housing Authority officer Brauli Rodriguez Jalapa could be located).

“We expect integrity and honesty from every police officer, every day, in the police departments across this country,” said U.S. Attorney Ismail Ramsey. “Amiri failed to uphold these basic responsibilities, and a federal jury has convicted him of defrauding his employer, the Antioch Police Department.  He, along with the other officers he conspired with, now face the consequences of violating the rule of law that they swore to uphold.”

“Amiri engaged in a calculated conspiracy to defraud his police department of taxpayer funds. His actions were a violation of the law and a grave betrayal of public trust,” said FBI Special Agent in Charge Robert Tripp. “Amiri and his co-conspirators’ deception has no place in law enforcement. With this conviction, he now faces the consequences of his actions.”

Amiri, 33, was employed as a Police Officer with the Antioch Police Department.  At trial, the evidence presented showed that the City of Antioch and City of Pittsburg’s Police Departments offered reimbursements toward higher education tuition and expenses, along with pay raises and other financial incentives upon completion of a degree.  However, instead of completing higher education coursework on their own, Amiri and his co-conspirators hired someone to complete entire courses on their behalf at an online university to secure a bachelor’s degree in Criminal Justice.  Amiri and his co-conspirators then represented they had taken those courses and earned the degrees from the university when requesting reimbursements and financial incentives from their police department employers, the City of Antioch and the City of Pittsburg.  They were in turn paid additional financial incentives, calculated as percentages of their salaries, while they remained employed by their police departments.

In a span of two years, the conspiracy included numerous other officers and former officers, including Berhan (Pittsburg PD), Amiri (Antioch PD), Theodosy a/k/a Nash (Pittsburg PD), Peterson (Antioch PD), Mejia-Orozco (Pittsburg PD), and Rodriguez Jalapa (formerly Pittsburg PD).

The evidence at trial showed that Amiri texted the person who took his classes for him, writing among other things: “can i hire you [ ] to do my … classes? ill pay you per class”; “don’t tell a soul about me hiring you for this. we can’t afford it getting leaked and me losing my job”; “if i submit my request for the degree on time by the end [ ] of the month i can coordinate my raise in a timely manner”; and “I’m gonna rush order my degree to get my pay raise jump started.”

On the basis of courses taken by this person, Amiri “earned” a bachelor’s degree in Criminal Justice.  Amiri applied for and thereafter received financial incentives from the City of Antioch for having completed university courses and earning a bachelor’s degree.

The jury convicted Amiri of one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, and one count of wire fraud, in violation of 18 U.S.C. § 1343.

U.S. Senior District Judge Jeffrey S. White scheduled Amiri’s sentencing for November 12, 2024.  Each of the two counts of conviction carries a maximum sentence of 20 years in prison.  The Court may also order a fine, restitution, and supervision upon release from prison as part of any sentence.  However, any sentence 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.

A federal grand jury in San Francisco returned multiple indictments on August 16, 2023, that collectively charged ten current and former officers and employees from the Antioch and Pittsburg police departments with federal crimes.  Amiri is the last officer to be convicted in the conspiracy to commit wire fraud case.

Amiri is scheduled for trial in another related case in February 2025.

Former Antioch officers arrested on Thursday, August 17, 2023, are Eric Allen Rombough, Devon Christopher Wenger, Timothy Allen Manly Williams and Daniel James Harris. Photos: APD

Here is the status of the cases: (Rombough, Wenger, Manly Williams and Harris are former Antioch Police Officers).

Case Number Statute(s) Defendant

(Bold: multiple case numbers)

 Status
23-cr-00264 18 U.S.C. §§ 1349 (Conspiracy to Commit Wire Fraud; 1343 (Wire Fraud) Patrick Berhan Pleaded guilty 3/26/24, sentencing set for 9/3/24
Morteza Amiri Convicted at trial 8/8/24, sentencing set for 11/12/24
Amanda Theodosy a/k/a Nash Pleaded guilty 7/30/24, sentencing set for 11/5/24
Samantha Peterson Pleaded guilty 1/9/24, sentenced 4/23/24
Ernesto Mejia-Orozco Pleaded guilty 6/11/24, sentencing set for 9/17/24
Brauli Rodriguez Jalapa Pleaded guilty 6/25/24, sentencing set for 10/22/24
23-cr-00267 18 U.S.C. §§ 1519 (Destruction, Alteration, and Falsification of Records in Federal Investigations); 1512(c)(2) (Obstruction of Official Proceedings); 242 (Deprivation of Rights Under Color of Law) Timothy Manly Williams Pending
23-cr-00268 21 U.S.C. §§ 846 (Conspiracy to Distribute and Possess with Intent to Distribute Anabolic Steroids), 841(a)(1), and (b)(1)(E)(i) (Possession with Intent to Distribute Anabolic Steroids) Daniel Harris Status set for 8/13/24
21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(E)(i) (Conspiracy to Distribute and Possess with Intent to Distribute Anabolic Steroids);

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

 Devon Wenger
23-cr-00269 18 U.S.C. §§ 241 (Conspiracy Against Rights), 242 (Deprivation of Rights Under Color of Law); § 1519 (Destruction, Alteration, and Falsification of Records in Federal Investigations) Morteza Amiri Trial set for 2/18/25
18 U.S.C. §§ 241 (Conspiracy Against Rights), 242 (Deprivation of Rights Under Color of Law) Eric Rombough
18 U.S.C. §§ 241 (Conspiracy Against Rights), 242 (Deprivation of Rights Under Color of Law) Devon Wenger
24-cr-00157 21 U.S.C. §§ 841(a)(1) and (b)(1)(E)(i) (Possession with Intent to Distribute Anabolic Steroids) Patrick Berhan Pleaded guilty 3/26/24, sentencing set for 9/3/24

This prosecution is the result of an investigation by the FBI and the Office of the Contra Costa County District Attorney.

El Sobrante man charged with fraudulently obtaining more than $1.1 million in COVID-relief funds

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Lane R Jenkins. Source: LinkedIn

Defendant allegedly misused PPP funds for his real estate investment business, EIDL for 10 employees that didn’t exist of a cleaning business that also didn’t exist to pay off personal debts, enrich himself in 2020, 2021

If convicted could face 20 years in prison on each of 3 counts of wire fraud and 5 years for submitting false writings to a government agency

By U.S. Attorney, Northern District of California

OAKLAND – A federal grand jury has returned an indictment charging a Contra Costa County man with wire fraud and other crimes relating to a scheme in which he fraudulently obtained more than $1.1 million in government-backed COVID-19 relief funds, announced United States Attorney Ismail J. Ramsey; Federal Bureau of Investigation (FBI) Special Agent in Robert K. Tripp; and Small Business Administration (SBA) Office of Inspector General (OIG) Special Agent in Charge Weston King of the Western Region.

According to the indictment filed this week, Lane Jenkins, 53, of El Sobrante, California, was president of a company called A & L Investments LLC (A&L), which was founded in 2016, headquartered in El Sobrante, and purported to purchase, renovate, and sell distressed properties. The indictment alleges that, in February 2021 and April 2021, Jenkins applied for and received two Paycheck Protection Program (PPP) loans totaling more than $1 million on the basis of false and fraudulent representations that A&L had dozens of employees and hundreds of thousands of dollars in monthly payroll expenses. In fact, A&L had zero employees and no monthly payroll. In December 2021, Jenkins applied for and received forgiveness of the first of those two loans, falsely certifying he had used the PPP funds to make payroll for A&L’s nonexistent employees. In fact, Jenkins had used the money for personal expenses and to pay off personal debts.

The indictment also states that, in July 2020, Jenkins applied for and received an Economic Injury Disaster Loan (EIDL) of nearly $95,000 for a maid and cleaning service he said he operated as a sole proprietor. The application falsely stated that Jenkins had 10 employees and gross revenues of $241,353. In fact, he had no employees and no revenues. Rather than use the EIDL funds he received on approved business expenses, Jenkins used that money to enrich himself.

The PPP was administered by the SBA as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted in March 2020 to provide billions of dollars in emergency financial assistance to millions of Americans suffering from the economic effects of the COVID-19 pandemic. The PPP provided forgivable loans to small businesses for job retention and certain other qualified business expenses. PPP funds were disbursed by SBA-approved third-party lenders.

The EIDL program is also administered by the SBA. It provides low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters. As relevant here, the CARES Act authorized the SBA to make EIDL loans of up to $2 million to eligible small businesses experiencing substantial financial disruption due to the COVID-19 pandemic. EIDL funds are disbursed directly by the SBA.

The Indictment charges three counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of submitting false writings to a government agency, in violation of 18 U.S.C. § 1001(a)(3).

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Jenkins faces a maximum statutory sentence of 20 years in prison on each of the three counts of wire fraud and a maximum statutory sentence of 5 years in prison on the fourth count, which charges him with submitting false writings to a government agency. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Jenkins has not yet appeared in court to face the charges against him.

Assistant U.S. Attorney Kenneth Chambers is prosecuting the case. The prosecution is the result of an investigation by the FBI and SBA-OIG.

According to his LinkedIn profile, Jenkins has operated his business since Nov. 2015 but according to corporationwiki.com, he formed the business in May 2016 which has three other associated individuals and is located in Pinole. In addition, since 2009 Jenkins has been employed as a Key Accounts Sales Manager for Southern Wine & Spirits.

Allen D. Payton contributed to this report.

 

Bay Area serial bank robber from Antioch sentenced to more than five years in prison

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Brandon Elder arrested for a Brentwood bank robbery on Jan. 26, 2022. (Photo: Brentwood PD) and his Facebook photo posted on Oct. 3, 2021.

Defendant robbed a bank only 19 days after release from custody for previous bank robbery

Brandon Elder has history of arrests dating to 2016 including 5 times in 2021 and 3 times in 2022

By U.S. Attorney, Northern District of California

SAN FRANCISCO – Brandon John Elder was sentenced to 63 months in prison for bank robbery, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (FBI), San Francisco Field Office, Special Agent in Charge Robert K. Tripp. The sentence was handed down by the Hon. James Donato, United States District Judge.

Elder, 29 (born 2/14/1995), of Antioch, pleaded guilty to the charge on December 14, 2023. According to court filings, Elder walked into a bank in the Marina District of San Francisco on September 20, 2022, wearing a black hoodie, black facemask, and blue gloves. He approached the teller window, stated “this is a robbery,” and demanded “50s” and “100s.” The teller handed over $10,000 in cash to Elder, who ran out of the bank and back to his getaway car in a nearby parking garage. Elder was arrested two days later in Pleasant Hill, Calif., while shoplifting a PlayStation from a Target with $7,867 cash in his pocket. A grand jury indicted Elder on November 1, 2022, charging him with one count of bank robbery, in violation of 18 U.S.C. § 2113(a). Elder pleaded guilty to the charge without a written plea agreement.

Elder committed this bank robbery while still on post-release community supervision. He had been released from state custody only 19 days earlier after serving a custodial sentence related to the robbery of a bank he committed on January 26, 2022, in Brentwood, Calif. In addition, Elder already had been convicted of 11 other thefts in state court, including a violent incident during which he slashed a loss prevention officer with a box cutter. (See related article)

“Repeat offenders like Brandon Elder should not be allowed to continue terrorizing the community,” said United States Attorney Ismail J. Ramsey. “Enough is enough. This Office will ensure that criminals like Mr. Elder face serious repercussions for their actions.”

“Elder used threats and intimidation to terrorize the employees of the bank he robbed,” said Special Agent in Charge Robert Tripp. “His complete disregard for the law demanded justice, and justice he received with this sentence. The FBI will not waver when it comes to preserving the peace of our community by taking dangerous criminals off the streets.”

In addition to sentencing Elder to prison, Judge Donato ordered the defendant to serve a year of supervised release to begin after his prison term is completed. The defendant was immediately remanded into custody.

Assistant U.S. Attorney George Hageman is prosecuting the case with the assistance of Lakisha Holliman. The prosecution is the result of an investigation by the FBI.

According to localcrimenews.com, Elder was also arrested five times in 2021 and three times in 2022 by multiple agencies including Vallejo PD, Dublin PD, San Francisco PD, Antioch PD, Pleasant Hill PD and BART Police for crimes including driving with a suspended license, drug possession including for sale, vehicle theft, receiving stolen property – motor vehicle, evading an officer including wanton disregard for safety, resisting arrest, failure to appear, smoking on BART and burglary. (See related article)

In addition, Elder was also arrested twice in 2016, first on Feb. 1st at 4:30 p.m. by Antioch Police on an outstanding felony warrant then again on August 19, 2016 by Antioch Police and at that time was a known gang member, who had two felony warrants for his arrest. Several APD officers went to Elder’s residence in the 200 block of Rossi Avenue where he was contacted in his bedroom. Elder was arrested and sent to county jail.

According to his Facebook page, Elder is from Oakland, lives in Antioch and is single, went to John Swet High School in Crockett and works at Safeway. His last post was on Nov. 8, 2021, while at the DMV in San Francisco.

According to the Alameda County Sheriff’s Office, the five-feet, seven-inch tall, 135-pound Elder, who is white and has green eyes and brown hair, is being held in the Santa Rita Jail on no bail.

Allen D. Payton contributed to this report.

Tracy man sentenced for computer attack on Discovery Bay Water Treatment Facility

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Photos source: Town of Discovery Bay

To serve home confinement and probation, pay restitution

Defendant was former employee of contractor and admitted to unleashing attack

By U.S. Attorney, Northern District of California

OAKLAND – Rambler Gallo was sentenced to serve six months of home confinement and 36 months of probation for intentionally causing damage to the computer network for the Discovery Bay Water Treatment Facility, located in the Town of Discovery Bay, Calif., and thereby threatening public health and safety. Specifically, Gallo intentionally uninstalled the main operational system for the water treatment plant that operates the automated monitoring system that protects the entire water treatment system, including monitoring and controlling the chemical levels and filtration of the water across all the Discovery Bay water service facilities. The sentence was handed down on Wednesday by Haywood S. Gilliam Jr., United States District Judge. The announcement was made by United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp.

Gallo, 53, of Tracy, Calif., was a full-time employee of a private Massachusetts-based company identified in the indictment as Company A, which contracted with Discovery Bay to operate the town’s wastewater treatment facility. The facility provides treatment for the water and wastewater systems for the town’s 15,000 residents. During his employment with Company A, from July of 2016 until December of 2020, Gallo was the company’s “Instrumentation and Control Tech,” with responsibility for maintaining the instrumentation and the computer systems used to control the electromechanical processes of the facility in Discovery Bay.

According to his plea agreement, while Gallo was employed with Company A, he installed software into his own personal computer and into Company A’s private internal network that allowed Gallo to gain remote access to Discovery Bay’s Water Treatment facility computer network. Gallo resigned from his employment with Company on November 25, 2020, giving two weeks’ notice. Approximately five weeks later, Gallo accessed the facility’s computer system remotely and transmitted a command to uninstall certain software which was designed to perform as the main hub of the facility’s computer network.

The software that Gallo accessed protected the entire water treatment system, including water pressure, filtration, and chemical levels. Documents filed by the government in connection with Gallo’s sentencing describe how Gallo’s actions took the monitoring software offline into the following day when it was discovered by employees. Employees thereafter took steps to rectify the situation and mitigate any potential damage to the water treatment system. The government argued that Gallo’s actions “were well thought out to be as disruptive as possible” and “caused a potential threat to the health and safety of the community’s water supply.”

A federal grand jury indicted Gallo on June 27, 2023, charging him with one felony count of transmitting a program, information, code, and command to cause damage to a protected computer, in violation of 18 U.S.C. §§ 1030(a)(5)(A) and (c)(4)(B)(i). Gallo pleaded guilty to the charge.

In addition to the prison term, Judge Gilliam ordered Gallo to forfeit his computer and to pay $44,250 restitution.

Assistant United States Attorney Cynthia Frey is prosecuting this case with assistance from Kathy Tat and Kevin Costello. The case is being investigated by the FBI.

 

Brentwood man charged for child pornography, illegal rifle

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Michael Lee Patterson one of 7 arrested during 15-agency Operation Spring Clean in May 2023, including men from Oakley, San Ramon, another from Brentwood

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

OAKLAND – A federal grand jury has indicted Michael Lee Patterson for receipt of child pornography, in violation of 18 U.S.C. § 2252(a)(2) and (b), and possession of an unregistered short-barreled rifle, in violation of 26 U.S.C. § 5861(d), announced United States Attorney Ismail J. Ramsey, United States Secret Service (USSS) Special Agent in Charge Shawn M. Bradstreet, and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jennifer Cicolani. The indictment, filed April 18, 2024, was unsealed on May 6, 2024, at Patterson’s initial federal court appearance before U.S. Magistrate Judge Donna M. Ryu. On May 16, 2024, Magistrate Judge Ryu ordered Patterson detained pending trial.

According to the government’s detention memorandum, in late May 2023, the Silicon Valley Internet Crimes Against Children Task Force (SV-ICAC) conducted an operation to identify and arrest adults engaging in sexual conversations with undercover chatters posing online as minors. During this operation, Patterson engaged in an online conversation with an undercover officer posing as a 13-year-old girl, and eventually planned to meet and engage in sexual conduct. Officers arrested Patterson when he arrived at the agreed upon location. In Patterson’s car, officers located the phone Patterson had used to communicate with the undercover officer, and next to the phone, officers located a loaded .38 caliber revolver. The government further argued that after his arrest, Patterson was found to have been in possession of over 600 videos and over 1,200 individual images depicting child sexual abuse material on various electronic devices, as well as dozens of firearms, firearm components, boxes of ammunition, and firearm manufacturing machines and components, including a computerized gun milling machine. Three of the firearms were unregistered short-barreled rifles and one was an unregistered fully automatic machine gun.

Patterson is scheduled to appear before the Honorable U.S. District Judge Haywood S. Gilliam, Jr. on June 26, 2024, in Oakland.

As previously reported, Patterson was one of seven men arrested during the week of May 31st, 2023, while the Brentwood Police Department hosted the Contra Costa County Internet Crimes Against Children (ICAC) Task Force for an operation targeting adults who were seeking to meet minors for sex with the goal of identifying victims of child sexual abuse. A total of 15 law enforcement agencies participated in “Operation Spring Cleaning,” which encompassed over 1,200 law enforcement work hours throughout the week. The ICAC Task Force seized approximately 40 illegal firearms and 39 electronic devices, executed eight (search warrants, and impounded five vehicles. In total seven arrests were also made: 29-year-old Nhouel Dulay (Oakley), 42-year-old Michael Patterson (Brentwood), 43-year-old Jeffrey Pallesen (Stockton), 25-year-old Carlos Vera (Brentwood), 21-year-old Edward Stinson (Merced), 54-year-old Robert Stearns (San Ramon), and 29-year-old Randall Alston (Berkeley).

According to localcrimenews.com, Patterson is White, five-feet, seven-inches tall and 150 lbs.

The ICAC program helps state and local law enforcement agencies develop an effective response to technology-facilitated child sexual exploitation and internet crimes against children. This includes forensic and investigative services, training, technical assistance, victim services, and community education. Our agency remains committed to protecting the most vulnerable in our community and would like to thank all of the participating agencies for their contributions last week in combatting child exploitation.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of twenty years in prison and a fine of $250,000, plus restitution if appropriate, for a violation of 18 U.S.C. § 2252(a)(2) and (b), and 10 years imprisonment and a fine of $10,000 for a violation of 26 U.S.C. § 5861(d). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Assistant U.S. Attorney Jonah Ross is prosecuting the case with the assistance of Kay Konopaske and Claudia Hyslop. The prosecution is the result of an investigation by the USSS, ATF, SV-ICAC, the Brentwood and Walnut Creek Police Departments, and the Contra Costa Sheriff’s Office.

Allen D. Payton contributed to this report.

 

West County: Rodeo tattoo shop owner, real estate investor pleads guilty to tax evasion

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Defendant admits to scheme of failing to disclose more than $3 million in income earned from his companies, falsely reporting expenses

Faces maximum prison term of 5 years, $250,000 fine

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

OAKLAND – Salman Salman pleaded guilty today to one count of tax evasion in violation of 26 U.S.C. § 7201. The plea was accepted by the Honorable Haywood S. Gilliam, Jr., United States District Judge. The announcement was made by United States Attorney for the Northern District of California Ismail J. Ramsey and IRS Criminal Investigation (CI) Acting Special Agent in Charge Michael Mosley of the Oakland Field Office.

Salman, 47, of Rodeo, Calif., was charged with a scheme to evade taxes by filing false Form 1040 joint income tax returns for himself and his wife for tax years 2016 through 2019. Specifically, Salman admitted to falsely underreporting income he and his wife enjoyed from three businesses he owned and operated during the course of the scheme, The Plug Tattoo & Piercing, Inc. in Richmond, S&S Real Estate Investment Group, and Synergy Investment Group Ohio, Inc.

In the plea agreement, Salman admitted that he both understated income from his companies and that he claimed false and overstated expenses as part of his scheme to further reduce his tax obligations. In total, Salman admitted that he failed to disclose over $3.4 million in income he received from his companies for tax years 2016 through 2019.

On December 11, 2023, Salman was charged by information with four counts of tax evasion, in violation of 26 U.S.C. § 7201. Pursuant to the plea agreement, Salman admitted the conduct alleged as support for all four counts in the information, but pleaded guilty to Count Four, which charges him with tax evasion for tax year 2019.

Judge Gilliam scheduled Salman’s sentencing hearing for September 18, 2024. For the tax evasion charge, Salman faces a maximum prison term of five years, a maximum fine of $250,000, and restitution of at least $438,247 to the IRS. As part of any sentence, the court may also order Salman 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 Thomas Green, with the assistance of Kay Konopaske and Christine Tian of the U.S. Attorney’s Office. The prosecution is the result of an investigation by the Internal Revenue Service-Criminal Investigation.

CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.

The IRS contributed to this report.

Concord man sentenced to 20 years in prison for coercing, enticing minors to produce child porn, related crime

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Javier Antonio Ramirez was arrest for shooting someone in Martinez on April 24, 2018. Photo: Martinez PD

Javier Ramirez supplied minor victims with fentanyl in exchange for sexual acts

Has history of arrests dating to 2013

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

OAKLAND – Javier Antonio Ramirez was sentenced to serve 20 years in prison for coercing and enticing teenaged girls to produce child pornography and receiving child pornography this week, announced U.S. Attorney Ismail J. Ramsey and Homeland Security Investigations (“HSI”) San Francisco Special Agent in Charge Tatum King. The sentence was handed down by the Hon. Jon S. Tigar, United States District Judge.

Ramirez, 29, of Concord, was charged by indictment on March 2, 2023, with one count of coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b), and one count of receipt of child pornography, in violation of 18 U.S.C. §§ 2252(a)(2) and (b). Ramirez pleaded guilty to both counts on November 13, 2023.

“Javier Ramirez’s conduct is every parent’s nightmare,” said U.S. Attorney Ismail J. Ramsey. “That Ramirez introduced minors to fentanyl, a lethal drug, to assist in coercing and exploiting them and then watched those minors overdose repeatedly, only makes matters worse. Let this sentence serve as a reminder that this Office will take all steps available to hold accountable those who prey on and exploit our youth.”

“The sentencing of Ramirez to 20 years in prison for coercing and enticing minors to produce child sexual abuse material while admittedly poisoning them with the dangerous narcotics is a stern reminder of the imperative to safeguard our children,” said Special Agent in Charge Tatum King. “This verdict underscores HSI’s unwavering commitment to protect the innocent and hold perpetrators of such despicable crimes fully accountable under the law.”

According to the plea agreement, Ramirez admitted that between June 2021 through February 2023, Ramirez used social media to identify minor girls to persuade them to engage in sexual intercourse and sexually explicit conduct with Ramirez, which, on occasion, Ramirez would film or photograph. Ramirez admitted that the first step of the pattern of coercion began with Ramirez supplying narcotics to girls, who were all under the age of 18 years old. Ramirez provided narcotics, including cocaine and fentanyl, to these victims at discounted prices or even for free in exchange for sexual acts.

According to court filings, Ramirez was the one who introduced many of the victims to fentanyl for the first time, when the victims were only 16 or 17 years old. Over time, Ramirez watched each identified victim overdose multiple times and yet continued to supply more fentanyl to the victims, all while sexually exploiting them. In January 2023, one of the minor victims suffered a non-fatal fentanyl overdose while at a high school in Contra Costa County, from fentanyl Ramirez took her to procure in San Francisco the night before.

Ramirez also pleaded guilty to receipt of child pornography. According to the plea agreement, Ramirez admitted having almost 100 videos and images of child pornography, including of prepubescent minors and toddlers.

Judge Tigar sentenced Ramirez to 240 months of imprisonment for the coercion and enticement count, to be served concurrently with 216 months of imprisonment for the receipt of child pornography count. In addition to the prison term, Judge Tigar also ordered Ramirez to serve 15 years of supervised release which will begin after the term of imprisonment. Ramirez was immediately remanded into custody.

Assistant U.S. Attorney Kelly Volkar of the Oakland Branch of the United States Attorney’s Office is prosecuting the case, with the assistance of Mark DiCenzo. The prosecution is the result of an investigation by Homeland Security Investigations, the Contra Costa Internet Crimes Against Children Task Force, the Lafayette Police Department, and the Contra Costa Sherriff’s Office.

Online child sexual exploitation and abuse is a threat to all children and teens who use the internet. Prevention and reporting resources for children and caregivers are now available online at www.dhs.gov/know2protect and includes HSI’s signature iGuardian training program.

One Pill Can Kill: Beware of pills bought on the street: One Pill Can Kill. Fentanyl, a Schedule II controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that purport to mimic the effects of Oxycodone, Percocet, and other drugs, but can be obtained at a lower cost. However, very small variations in the amount or quality of fentanyl create huge effects on the potency of the counterfeit pills and can easily cause death. Fentanyl has now become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills are usually shaped and colored to resemble pills that are sold legitimately at pharmacies. For example, counterfeit pills known as M30s mimic Oxycodone, but when sold on the street they routinely contain fentanyl. These tablets are round and often light blue in color, though they may be made in many colors, and have “M” and “30” imprinted on opposite sides of the pill.

According to localcrimenews.com, Ramirez has a history of arrests dating back to 2013 by multiple agencies in various cities and counties for crimes including weapons charges, DUI, battery, drug possession, assault with a deadly weapon for shooting at another individual in Martinez and multiple charges of vandalism of $5,000 or more.

According to the Alameda County Sheriff’s Office, he was born on Aug. 11, 1994, is five-foot, 10-inches tall, 150-pounds, listed as White, and is being held in Santa Rita Jail in Dublin on no bail.

Allen D. Payton contributed to this report.

 

Four street gang members charged for violent robberies of San Pablo jewelry store, other Bay Area businesses

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Oakland-based Ghost Town gang co-conspirators stole bags of jewelry valued at $300,000 to $500,000

Face 10 to 20 years in prison; three have histories of arrests

By U.S. Attorney Northern District of California

OAKLAND – A federal grand jury has handed down a superseding indictment alleging Jakari Jenkins, Demarco Barnett, Garland Devonte Rabon, and Keanna Alloise Smith-Stewart conspired with each other, and other members of an Oakland-based street gang, to rob several San Francisco Bay Area businesses, announced United States Attorney Ismail J. Ramsey and Federal Bureau of Investigation (“FBI”) Special Agent in Charge Robert K Tripp. The superseding indictment, filed April 18, 2024, was unsealed last Friday at an initial appearance by defendant Rabon before U.S. Magistrate Judge Kandis A. Westmore. The final defendant to appear in court, Ms. Smith-Stewart, made her initial appearance before Magistrate Judge Westmore on April 30.

The superseding indictment alleges that by March of 2022, the four defendants were all members of, or had association with, an Oakland-based street gang called the Ghost Town gang. The indictment describes a series of armed robberies and burglaries that were committed by groups of co-conspirators.

The first robbery described in the superseding indictment involved Barnett and Jenkins, who along with other members of the gang carried out the armed robbery of a coin and stamp store located on the 10th floor of a building in the South of Market neighborhood of San Francisco. As part of the plan, members of the conspiracy allegedly rented a car to be used as a getaway car. In addition, members of the conspiracy stole a license plate to be used on the getaway car and met additional members of the conspiracy at the Oakland residence of another gang member. On March 18, 2022, the day of the robbery, Barnett, Jenkins, and at least two additional unnamed co-conspirators entered the store, brandished firearms, and demanded money from the business and the two individuals who happened to be present at the time— the owner and his son. The robbers struck the head and zip-tied the hands of the owner’s son, and absconded with cash, jewelry, and coins having an aggregate value of more than $300,000.

The second armed robbery described in the superseding indictment occurred approximately eight months later. As a prelude to the second robbery, members of the conspiracy pretended to be customers of a jewelry store in San Pablo. The pretend customers left jewelry with the operators of the store. According to the indictment, Jenkins, Barnett, and Rabon arrived at the jewelry store on November 12, 2022, with at least four other co-conspirators and robbed the store of jewelry, including the jewelry that members of the gang previously had left with the store. The robbers arrived in two getaway cars—both Dodge Chargers bearing stolen license plates. Five co-conspirators, at least three of whom were brandishing firearms, entered the store while two of the co-conspirators waited outside in the getaway cars. The co-conspirators stole bags of jewelry valued at approximately $300,000 to $500,000. The indictment describes how all four defendants in the superseding indictment later wore the stolen jewelry, shared the stolen jewelry with other members of Ghost Town gang members, or otherwise made use of the stolen jewelry for their personal purposes.

The superseding indictment also describes the November 24, 2022, burglary of an Audi dealership in Oakland. Specifically, the indictment describes how days before the robbery, Smith-Stewart allegedly purchased a black Audi S5 from the dealership using a fake driver’s license and another person’s social security number. After providing a down payment of approximately $9,500 toward the purchase of the car, Jenkins, Barnett, and another unindicted co-conspirator burglarized the dealership and stole the safe containing the down payment that Smith-Stewart previously had submitted.

Finally, the superseding indictment describes the Christmas Eve, 2022, armed robbery of a marijuana business in Oakland and one of its employees. The superseding indictment describes how the worker was leaving the business when Jenkins, Barnett, Rabon, and Smith-Stewart, along with at least four other co-conspirators, arrived at the marijuana business in two getaway cars. The robbers brandished weapons, directed the worker back into the building, and demanded “budded weed” and “money.” One of the robbers struck the worker in the head with a firearm. The robbers searched through the worker’s pockets and stole his bank debit card. The robbers absconded with the victim’s debit card and a bag of marijuana plant trimmings. The superseding indictment describes how on December 26, 2022, Smith-Stewart allegedly used the victim’s debit card at Westfield Mall in San Francisco to purchase more than $1,000 worth of items at Bloomingdale’s and Nordstrom.

In sum, the defendants are charged with the following crimes:

Defendant

Charge

 Maximum Statutory Sentence, If Convicted

ALL DEFENDANTS

(one count each)

18 U.S.C. § 1951(a)
Conspiracy to Engage in Robbery Affecting Interstate Commerce

(Hobbs Act Robbery)

 – Imprisonment: 20 years

– Fine: $250,000

– Supervised Release: 3 years

– Special Assessment: $100 per count

– Forfeiture

– Restitution

JAKARI JENKINS

(three counts)

DEMARCO BARNETT

(three counts)

GARLAND RABON

(two counts)

KEANNA SMITH-STEWART

(one count)

18 U.S.C. § 1951

Robbery and Aiding and Abetting Robbery Affecting Interstate Commerce

 – Imprisonment: 20 years

– Fine: $250,000

– Supervised Release: 3 years

– Special Assessment: $100 per count

– Forfeiture

– Restitution

KEANNA SMITH-STEWART

(one count)

18 U.S.C. §§ 1029(a) and 2

Counterfeit Access Device Fraud

 -Imprisonment: 10 years

– Fine: $250,000

– Supervised Release: 3 years

– Special Assessment: $100

– Forfeiture

– Restitution

KEANNA SMITH-STEWART

(one count)

18 U.S.C. § 1029(a)(5)

Access Device Fraud

 Imprisonment: 15 years

– Fine: $250,000

– Supervised Release: 3 years

– Special Assessment: $100

– Forfeiture

– Restitution

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

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

Defendants Jenkins and Barnett are in custody and are scheduled to make the next appearance before the Honorable U.S. District Judge Araceli Martinez-Olguin on July 15, 2024, in Oakland. Defendants Rabon and Smith-Stewart were in custody and scheduled to appear before Chief Magistrate Judge Ryu on May 1, 2024.

This case is being prosecuted by Assistant U.S. Attorneys Lauren Harding and Jonathan Lee, with the assistance of Yenni Weinberg and Erick Machado. The prosecution is the result of an investigation by the FBI, with assistance from the police departments of Oakland, San Francisco, and San Pablo.

According to localcrimenews.com, the five-foot, five-inch tall, 220-pound, 32-year-old Jenkins of Oakland has a  history of arrests dating back to 2013 for multiple weapons, drug and burglary charges, and a hit-and-run; the five-foot, 11-inch tall, 215-pound, 34-year-old Barnett of Oakland, has a history of arrests dating to 2014 for multiple burglaries and a hit-and-run; the six-foot tall, 190-pound, 28-year-old Rabon of Mountain House, has a history of arrests dating to 2015 for multiple burglary and weapons charges; and the five-foot, five-inch, 135-pound, 31-year-old Smith-Stewart of West Sacramento was also arrested on April 29, 2024 by the Alameda County Sheriff’s Department. No details of the arrest were available.

Allen D. Payton contributed to this report.

Concord man charged with assaulting DEA Officer with deadly weapon, other crimes

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Joel Dowen also indicted for extortion and a drug offense; partner, a SF man also charged with drug offenses

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

OAKLAND – A federal grand jury has charged two defendants with various crimes, including one defendant with extortion and assaulting a federal officer with a deadly weapon, announced United States Attorney Ismail J. Ramsey; Drug Enforcement Administration (DEA), San Francisco Field Division, Special Agent in Charge Brian M. Clark; Federal Bureau of Investigation (FBI) Special Agent in Charge Robert K. Tripp; IRS Criminal Investigation (CI) Acting Special Agent in Charge Michael Mosley of the Oakland Field Office; and San Francisco Division Postal Inspector in Charge Rafael Nuñez.

The superseding indictment—which was returned by a federal grand jury on March 26, 2024, but unsealed on Wednesday, April 3, 2024,—charges Joel Roland Dowen, 44, of Concord, California, with one count each of mailing threatening communications with intent to extort, in violation of 18 U.S.C. § 876(b), and assaulting a federal officer with a deadly weapon, in violation of 18 U.S.C. § 111(b). The indictment also charges Micah-Luc Almeida, 45, of San Francisco, California, with one count of possession with intent to distribute 3,4-Methylenedioxyamphetamine, commonly known as MDA, in violation of 21 U.S.C. § 841(a)(1) and (b)(1)(C). And it charges Dowen and Almeida together with one count of conspiracy to manufacture, distribute, or possess with intent to distribute MDA, in violation of 21 U.S.C. §§ 846, 841(a)(1), and (b)(1)(C). Dowen had originally been indicted on one count of mailing threatening communications with intent to extort, in violation of 18 U.S.C. § 876(b), on January 9, 2024.

“We will protect our federal law enforcement partners when someone harms or threatens them merely for doing their jobs,” said United States Attorney Ismail J. Ramsey. “The defendants here are charged with serious crimes, and I am proud of the work being done by this Office to bring them to justice and safeguard everyone in the Northern District of California, including those sworn to protect us all.”

According to a KTVU FOX2 report, Dowen “was arrested following a raid by federal agents on his Concord home” and “indicted by a federal grand jury after investigators discovered that he allegedly sent letters via the United States Postal Service, attempting to extort money from a personal identified only as ‘M.S.’ He also allegedly threatened harm to another person identified as ‘P.S.’”

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Dowen faces a maximum statutory sentence of 20 years in prison on each of the three charges against him. Almeida faces the same statutory maximum sentence of 20 years in prison on each of the two charges on which he has been indicted. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.

Dowen’s next court appearance is scheduled for May 3, 2024, before the Honorable Jon S. Tigar, United States District Judge for the Northern District of California. Dowen has been in federal custody since his arrest on January 17, 2024, and has been ordered detained pending trial. Almeida’s initial court appearance was scheduled for April 4, 2024, before the Honorable Kandis A. Westmore, United States Magistrate Judge for the Northern District of California.

According to the Alameda County Sherrif’s Office, Dowen is being held in the Santa Rita Jail in Dublin. According to localcrimenews.com, he is white, five-foot, seven-inches tall and weighs 280-pounds.

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 United States Attorney Dan Karmel is prosecuting these cases with the assistance of Sara Slattery and Andy Ding. These prosecutions are the result of an investigation by the DEA, FBI, CI, and United States Postal Inspection Service, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives; San Francisco Homeland Security Investigations; and United States Customs and Border Protection.

Allen D. Payton contributed to this report.