New Santa Ana | Category Archives: California Department of Justice

Rent-A-Center to pay $15.5M for ripping off California consumers

Posted on August 2, 2022 by Editor Posted in California, California Department of Justice, Crime Leave a comment

OAKLAND – California Attorney General Rob Bonta today announced a $15.5 million settlement against Rent-A-Center, one of the nation’s largest rent-to-own companies, for violations of state consumer protection laws relating to unlawful leasing practices and deceptive marketing. An investigation into Rent-A-Center’s “kiosk” business that operates out of traditional retail stores found that the company used an inflated “cash price” for products that was 15% higher than the retail price, potentially costing consumers hundreds of extra dollars, among other violations. As part of the stipulated judgment resolving the Attorney General’s investigation, Rent-A-Center will be required to comply with significant injunctive terms to deter future misconduct, pay $13.5 million in restitution to California consumers, and pay $2 million in civil penalties.

Will you still vote for Sarmiento even though his family is suing the City of Santa Ana?

“Rent-A-Center repeatedly relied on deceptive and unlawful tactics to pad its bottom line,” said Attorney General Bonta. “Furnishing a home is expensive, and consumers often hope rent-to-own agreements will lessen the cost, not realizing the total price they pay will end up being much higher. We won’t stand by when a company like Rent-A-Center overcharges these hardworking Californians, taking money that is needed for rent, food, or other essential expenses. Today’s judgment will provide critical relief to tens of thousands of Californians — and, importantly, prevent Rent-A-Center from continuing this conduct in the future.”

The rent-to-own industry consists of dealers that rent household goods, such as furniture and appliances, at extremely high prices to low- or moderate-income consumers. The contracts are structured as leases with an option to buy the leased goods. In a typical rent-to-own transaction, a consumer would pay on a weekly or monthly basis for the use of the product. With each new payment, the rental agreement automatically renews for another week or month. Upon fulfillment of the rental terms — usually one-to-three years of periodic payments — the title passes from the rent-to-own dealer to the consumer with the subset of consumers who do ultimately obtain ownership paying a large premium to do so.

In a complaint filed with the judgment, Attorney General Bonta alleges that Rent-A-Center violated California’s rent-to-own law in operating its business line known as Preferred Lease (formerly known as AcceptanceNOW), through which Rent-A-Center offers a rent-to-own option to customers inside of traditional retail stores. Among other violations, Attorney General Bonta alleges that Rent-A-Center overcharged consumers by inflating the cash price in its Preferred Lease contract by 15% over the true retail price. Attorney General Bonta also alleges that Rent-A-Center misled consumers about the most fundamental aspects of the Preferred Lease product, such as the right to return merchandise at any time with no penalty.

Today’s judgment will substantially reform Rent-A-Center’s Preferred Lease business model and deter future misconduct with extensive injunctive terms, including:

Cash Price Markup: Rent-A-Center is prohibited from charging a cash-price markup. The cash price must match the price advertised to the customer by the retailer;
Returns: Rent-A-Center is prohibited from preventing or limiting customer returns in any way;
Marketing: Rent-A-Center must clearly and conspicuously disclose that its Preferred Lease program is a rental-purchase transaction. Rent-A-Center must also provide each customer with a “Know Your Rights” document informing consumers about various key terms of their rental-purchase agreement;
Employee Training: Rent-A-Center must train employees regarding the Karnette Act generally as well as the specific injunctive terms in the settlement;
Monitoring and Reporting: Rent-A-Center will be required to prepare annual reports for the Attorney General describing its efforts to comply with the settlement for three years; and
$15.5 Million Payment: Rent-A-Center must provide $13.5 million in restitution to the tens of thousands of Californians who entered into contracts containing the 15% upcharge. Rent-A-Center must also pay $2 million in civil penalties.

Customers who rented merchandise from Rent-A-Center through its “kiosk” business located inside traditional retailers are eligible for restitution. Eligible individuals will receive a notice at their last known mailing address.

A copy of the complaint is available here. A copy of the stipulated judgment, which is subject to court approval, is available here.

Seven O.C. men charged with selling drugs that caused fatal overdoses

Posted on May 1, 2022 by Editor Posted in California Department of Justice, Crime, Drugs, Federal Government, Justice, Orange County, Santa Ana Leave a comment

SANTA ANA, California – Federal authorities today announced seven criminal cases against drug dealers who sold fentanyl-laced narcotics that caused fatal overdoses in Orange County, including one case in which three people died in Newport Beach.

The sweep has resulted in the arrest of six defendants pursuant to federal grand jury indictments or criminal complaints. One charged defendant is a fugitive currently being sought by authorities.

All seven defendants are charged with distribution of fentanyl resulting in death. If convicted of this offense, each defendant would face a mandatory minimum sentence of 20 years in federal prison and a potential sentence of life without parole.

“The opioid crisis has resulted in the widespread distribution of fentanyl and a horrific trail of misery resulting from the untimely death of tens of thousands of Americans each year,” said United States Attorney Tracy L. Wilkison. “These cases highlight two important lessons, with the first being that many street drugs are contaminated with an extremely powerful opioid that often leads to death. The second is that narcotics dealers face severe consequences in federal court when the distribution of their products results in a fatal overdose.”

“Often when we discuss the rampant rise of drug-caused deaths there’s a focus on numbers, but today’s announcement is an important reminder that these numbers are more than that – these are our children, loved ones and friends,” said DEA Los Angeles Special Agent in Charge Bill Bodner. “Fentanyl does not discriminate and it’s affecting every community, ethnicity and generation throughout our country. As we tackle the fentanyl crisis locally, we are intent on bringing justice to victims and their families, while putting drug dealers on notice that even selling one pill can have harsh federal penalties.”

The cases announced today are the result of investigations by the DEA’s Overdose Justice Task Force, which was created to address opioid-related deaths in the greater Los Angeles area, most of which are caused by the synthetic opioid fentanyl. Under the Overdose Justice program for the DEA’s Los Angeles Field Division, DEA agents collaborate with local law enforcement to analyze evidence to determine if there are circumstances that might lead to a federal criminal prosecution, and, if so, proactively target the drug trafficker. Since the start of the Overdose Justice program in 2018, the DEA has worked with an ever-expanding list of local police agencies to obtain approximately three dozen federal indictments that specifically charge death resulting from narcotics trafficking.

The victims in these cases are of diverse backgrounds, with two of the deceased victims being minors and one a community college student. In most of the cases, the victims did not know they were ingesting fentanyl, which can be deadly in tiny amounts. Some of the alleged drug traffickers knew or had reason to believe their products contained fentanyl, even though they claimed to be selling other narcotics.

All of the case were filed in United States District Court in Santa Ana and will be prosecuted by the United States Attorney’s Office:

William Edward Dick Jr., 51, of Costa Mesa was arrested Thursday for allegedly selling fentanyl-laced cocaine that killed three individuals in a Balboa Island house on the night of October 24, 2021. A criminal complaint filed on Wednesday alleges that two couples had gathered in Newport Beach, enjoyed a dinner together, and one of them decided to purchase cocaine for the group. They eventually contacted Dick, who agreed to sell them $200 worth of cocaine, which he delivered to the house where the couples were staying. After snorting the purported cocaine, all four suffered overdoses, and three of the individuals were pronounced dead at house the next morning. Dick, who is currently charged with one count of distribution of fentanyl resulting in death, is scheduled to make his first court appearance this afternoon in United States District Court in Santa Ana. The DEA and the Newport Beach Police Department are investigating this matter, which is being prosecuted by Assistant United States Attorney Bradley Marrett.
Omar Alejandro Reynoso, 30, of Costa Mesa, was arrested on Monday after a grand jury indicted him last week on two counts of distribution of fentanyl resulting in death. Reynoso allegedly provided counterfeit Xanax pills containing fentanyl to a man and a woman who died in his hotel room in incidents three weeks apart in November 2019. At his arraignment on Tuesday, Reynoso pleaded not guilty and was ordered to stand trial on June 14. A United States magistrate judge ordered Reynoso detained without bond while the case is pending. The DEA and the Costa Mesa Police Department are investigating this matter, which is being prosecuted by Assistant United States Attorney Jake Nare.
Tyler David Wilkinson, 23, of Santa Ana, was named Wednesday in a four-count federal grand jury indictment that alleges he sold counterfeit oxycodone pills to a 17-year-old victim who died in Lake Forest of a fentanyl overdose. The victim purchased the pills in June 2021 after responding to an advertisement Wilkinson posted on Snapchat, the investigation revealed. Six months before the transaction that led to the teen’s death, Wilkinson allegedly possessed distribution quantities of several types of narcotics, including nearly 1,400 counterfeit oxycodone pills laced with fentanyl. Wilkinson allegedly continued to sell fentanyl-laced pills, even after law enforcement executed a search warrant at his residence. Wilkinson is currently being sought by authorities. The DEA and the Orange County Sheriff’s Department are investigating this case, which is being prosecuted by Assistant United States Attorney Jake Nare.
Anthony Bernard Fender, 31, of Tustin, was arrested Monday pursuant to a grand jury indictment filed last week that alleges he sold fentanyl powder that resulted in the death of a 40-year-old man. The indictment further alleges that Fender committed the federal offense after being convicted of a drug trafficking crime in Orange County Superior Court in 2013, which, if proven, would subject Fender to a mandatory life sentence. The DEA and the Orange County Sheriff’s Department investigated this matter, which is being prosecuted by Assistant United States Attorney Bradley Marrett.
Carter Joseph Klein, 25, of Newport Beach, was arrested on April 14 after being named in a one-count indictment that accused him of distributing fentanyl that led to the overdose death of an 18-year-old Orange Coast College student. Klein allegedly sold fentanyl-laced counterfeit oxycodone pills to the victim in February 2021. Klein was arraigned on the indictment on April 15, when he entered a not guilty plea and was ordered to stand trial on June 7. The DEA and Costa Mesa Police Department are investigating this matter, which is being prosecuted by Assistant United States Attorney Rosalind Wang.
Isai Hernandez Higinio, a.k.a. “Joker,” 23, of Santa Ana, was arrested April 1 pursuant to a grand jury indictment filed last month that alleges he distributed fentanyl in counterfeit Percocet pills to an 18-year-old Tustin resident who died after ingesting the drug. Hernandez was arraigned on April 4, at which time he pleaded not guilty and was ordered held without bond. A trial in this case is scheduled for May 31. The DEA and Orange County Sheriff’s Department are investigating this matter, which is being prosecuted by Assistant United States Attorney Melissa Rabbani.
Matthew Benjamin Hurley, 24, of Virginia, was arrested January 3 on charges alleging that he distributed fentanyl at a motel in Costa Mesa that resulted in a fatal overdose. Hurley, who has been ordered detained without bond, is scheduled to go on trial on September 27. The DEA and the Huntington Beach Police Department are investigating this case, which is being prosecuted by Assistant United States Attorney Gina J. Kong.

Indictments and criminal complaints contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

Three O.C. Mexican Mafia members and 28 Associates charged in racketeering indictment

Posted on April 27, 2022 by Editor Posted in California Department of Justice, Crime, Federal Government, Gangs, Justice, Santa Ana, SAPD Leave a comment

SANTA ANA, California – A 33-count federal grand jury indictment unsealed today charges 31 members and associates of the Orange County Mexican Mafia with racketeering offenses, two murders and six attempted murders, and related drug and gun charges.

The indictment includes charges of conspiring to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act; committing violent crimes in aid of racketeering (VICAR), including murder and attempted murder; conspiring to traffic narcotics; distributing, and possessing with the intent to distribute, methamphetamine and heroin; using a firearm to cause a death; and other firearm charges.

“The violence, drug-dealing and other criminal acts being committed in our communities by gangsters associated with the Mexican Mafia is being met with the strongest possible response by law enforcement,” said United States Attorney Tracy L. Wilkison. “We will continue to investigate, arrest and prosecute these individuals to the fullest extent of the law to restore a sense of safety to so many neighborhoods that have felt the impact of their destructive conduct.”

“The Mexican Mafia allegedly preyed on vulnerable communities through fear, violence, and intimidation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This indictment sends a clear message that the Criminal Division, and our federal, state, and local partners, remain committed to protecting all of our communities from violence and exploitation.”

The indictment alleges that the Mexican Mafia, also known as La Eme, was comprised mostly of senior members of Latino street gangs who came together to control and profit from the activities of other Latino gangs operating in Southern California and within the California penal system. It is alleged that the Mexican Mafia members divided control of various areas in Southern California, with the member in control of a specific area controlling the criminal activities in that territory and receiving “taxes” paid by gangs to allow them to deal drugs in that area.

In addition to this widespread “tax” collection, it is alleged that the OC Mexican Mafia directly engaged in drug distribution in and out of prisons and jails. The indictment also alleges that the OC Mexican Mafia maintained authority over Latino street gangs through murder, attempted murder, and violent assaults with weapons including firearms.

“Cases targeting criminal enterprises like the Mexican Mafia require close collaboration with our local and federal partners and employ a variety of sophisticated techniques to overcome their evasive tactics,” said Kristi K. Johnson, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The Mexican Mafia in Orange County controls the majority of local gangs and rules by threatening violence and exacting violence on their enemies or against their own members who don’t follow strict rules. This indictment is the latest in our continuing joint efforts to target gangs and drug networks that fuel the violence in our communities.”

The indictment alleges that in or around 2016, and continuing to at least in or around April 2022, defendants Johnny Martinez, Robert Aguirre, and Dennis Ortiz were the OC Mexican Mafia members in charge of criminal activities in Orange County and within Orange County jail and prison facilities. Defendants Omar Mejia, Miguel Jose Alvarado, Luis Heriberto Vasquez, Michael Cooper, and Abraham Guajardo held positions of shot-callers or mouthpieces for Martinez, Aguirre, and Ortiz. Defendant Robert Martinez held a position of authority within the Orange County Jail as Johnny Martinez’s representative. Defendant Brenda Vanessa Campos Martinez served as a secretary for Johnny Martinez, and defendant Danielle Canales served in a similar capacity for Johnny Martinez and Cooper. The violent crimes alleged against the OC Mexican Mafia include:

the Jan. 19, 2017, armed robbery and shooting death of R.R.;
the Aug. 21, 2017, shooting death of R.V., who was shot seven times in the back of the head and body, and left dead on the street in Orange;
the Aug. 5, 2017, attempted murder of defendant Munoz, who had fallen out of favor with the OC Mexican Mafia and was shot seven times;
the Dec. 1, 2017, attempted murder of D.D., a representative of a Latino street gang, who was allegedly abusing his power and authority within the OC Mexican Mafia enterprise;
the Dec. 12, 2017, attempted murder of E.O., an OC Mexican Mafia associate incarcerated at Calipatria State Prison, who was believed to have violated the OC Mexican Mafia’s code by warning individuals that they were targeted for violence by the OC Mexican Mafia, and who suffered multiple injuries, including puncture wounds to his torso;
the Dec. 25, 2017, attempted murder of R.M. for showing disrespect to defendant Johnny Martinez;
the July 29, 2020, attempted murder of F.B., a member of an Orange County Latino street gang incarcerated at the Theo Lacy Facility, who was targeted because he purportedly claimed that he would speak to law enforcement about the Mexican Mafia, and whose throat was slit; and
two murder attempts on Jan. 5, 2018, and Dec. 31, 2019, of defendant Cooper, who had fallen out of favor with defendants Johnny Martinez and Aguirre, and who in one incident was stabbed multiple times in the head and back area, and in the second was cut in the throat and face.

In addition to these alleged violent acts, law enforcement investigated the OC Mexican Mafia’s methamphetamine and heroin trafficking activities on the streets, as well as in the prisons and jails. Authorities conducted multiple undercover purchases of methamphetamine and heroin from OC Mexican Mafia associates who were selling narcotics on behalf of Johnny Martinez and the OC Mexican Mafia.

“The Santa Ana Police Department is committed to working alongside local, state, and federal law enforcement partners to ensure that violent, career criminals are incarcerated and are brought to justice,” said Santa Ana Police Chief David Valentin. “Today’s operation was a result of years of dedicated investigation into some of the most dangerous gang members that plague our communities.”

Today’s arrests are the culmination of a multi-year investigation that IRS-CI is proud to be a part of”, said IRS Criminal Investigation Special Agent in Charge Ryan L. Korner. “The subjects of this investigation engaged is some of the most horrific acts imaginable, and we are glad to have done our part to help end their corrupt influence over our community.”

Out of the 31 defendants charged in the indictment, 21 were already in custody, and nine were arrested last night and this morning. Those arrested today are expected to be arraigned this afternoon in United States District Court in Santa Ana, and those already in custody will make initial appearances once each defendant is in federal custody.

The RICO statute provides for a maximum penalty of 20 years’ imprisonment for acts performed as part of the criminal organization. The VICAR statute provides for a mandatory sentence of life imprisonment for murder, a maximum sentence of 20 years for assault with a dangerous weapon, a maximum sentence of 10 years for attempted murder, and a maximum sentence of three years for attempted assault with a dangerous weapon. The charge of possessing, using, carrying, and discharging a firearm in furtherance of/during and in relation to a crime of violence carries a maximum sentence of life, with a mandatory sentence of at least five years and up to 10 years. The charge of causing death using a firearm carries a maximum sentence of life. Distribution and possession with intent to distribute methamphetamine and heroin carries a maximum sentence of life, and a mandatory minimum sentence of at least five years and up to 10 years. Felon in possession of a firearm or ammunition carries a maximum sentence of 10 years’ imprisonment. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI; the DEA; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); IRS-Criminal Investigation; the Santa Ana Police Department; the Anaheim Police Department; the Fullerton Police Department; the Orange Police Department; the Placentia Police Department; the Orange County Sheriff’s Department; the Orange County Probation Department; the Orange County District Attorney’s Office; and the California Department of Corrections and Rehabilitation are investigating the case.

Assistant U.S. Attorneys Daniel Ahn, Gregory Scally and Gregory Staples of the Santa Ana Branch Office, and Justice Department Trial Attorneys Marianne Shelvey and Danbee Kim of the Criminal Division’s Organized Crime and Gang Section are prosecuting this case.

An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Santa Ana pharmacy owner gets 3 years in prison for $1.8 million insurance scheme

Posted on August 30, 2021 by Editor Posted in California, California Department of Justice, Crime, Drugs, Insurance, Santa Ana Leave a comment

OAKLAND – California Attorney General Rob Bonta today announced the sentencing of Quality Care Pharmacy owner Divina Catalasan for defrauding the Medi-Cal and Medicare programs. An audit by the California Department of Justice (DOJ) found that the amount of drugs the owner of the Santa Ana-based pharmacy claimed to have purchased and billed the programs for was not supported by her actual inventory, and that her fraudulent over-billing totaled more than $1.8 million. Catalasan pleaded guilty on May 14, 2021, to three felony counts of fraudulent healthcare claims and grand theft, with a sentencing enhancement for aggravated white-collar crime. She was sentenced today in Orange County Superior Court to three years in state prison.

“Medi-Cal and Medicare bring healthcare to seniors and people in need, including underserved children and people with disabilities. People who defraud these publicly-funded programs cheat all of us,” said Attorney General Bonta. “Through our Division of Medi-Cal Fraud and Elder Abuse, the California Department of Justice works to protect Californians from healthcare fraud. People who try to pull a fast one on these programs will be held accountable.”

In 2015, an audit of Quality Care Pharmacy by the California Department of Health Care Services revealed that from 2011 through 2015, Catalasan billed Medi-Cal more than $540,000 over what her purchase inventory showed. The department then referred the case to DOJ’s Division of Medi-Cal Fraud and Elder Abuse (DMFEA), which expanded the audit and the time frame under review. DMFEA also expanded its audit beyond Medi-Cal to Medicare and Orange County’s Medi-Cal managed care plan, CalOptima. The expanded audit found that Catalasan fraudulently overbilled Medi-Cal and CalOptima for $1,168,585.06, and Medicare for $687,940.52, for a total of $1,856,525.58. She was arrested on June 11, 2019.

Through the DMFEA, DOJ works to protect Californians by investigating and prosecuting those who perpetrate fraud on the Medi-Cal program. DMFEA also investigates and prosecutes those responsible for abuse, neglect, and fraud committed against elderly and dependent adults. The division regularly works with whistleblowers and law enforcement agencies to investigate and prosecute crimes.

The DMFEA receives 75% of its funding from the U.S. Department of Health and Human Services under a grant award totaling $41,264,032 for federal fiscal year 2020-2021. The remaining 25%, totaling $13,754,675 for fiscal year 2020-2021, is funded by the State of California. The federal fiscal year is defined as through September 30, 2021.

A copy of the complaint is available here.

O.C. insurance agents arrested in $4 million securities fraud scheme

Posted on December 1, 2020 by Editor Posted in California, California Department of Justice, Crime, Insurance Leave a comment

ORANGE, Calif. — Robert Andrew Lotter, 63, of Newport Beach, and Charles Albert Major, 72, of Irvine, were arrested today on multiple felony counts of securities violations and burglary after allegedly defrauding more than 20 victims of over $4 million.

An investigation by the California Department of Insurance alleges that between 2003 and 2018, Lotter and Major fraudulently solicited and sold victims more than $4 million in stock certificates in Lotter’s companies, eAgency, Inc. and Mymobilewatchdog, Inc.

Lotter owns an insurance agency, R.A. Lotter Insurance Marketing, Inc., and Major is a licensed insurance agent. Lotter and Major contacted clients of R.A. Lotter Insurance Marketing and used various schemes to fraudulently obtain victims’ private financial information in order to identify potential investors for Lotter’s high-risk investments.

Lotter’s insurance agency led several victims to believe the agency was authorized or affiliated with the California State Teacher’s Retirement System (CalSTRS) that provides retirement pension advice to California public school educators. Some victims did not discover it was not authorized or affiliated with CalSTRS until after they had invested substantial funds in eAgency, Inc. and Mymobilewatchdog, Inc.

“Even though these insurance agents had a fiduciary responsibility to represent their clients’ best interest, they allegedly put greed above their clients’ needs,” said Insurance Commissioner Ricardo Lara. “Their arrest shows the Department of Insurance will persist in investigating and stopping insurance professionals who put their clients at financial risk.”

Between 2003 and 2018, Lotter and Major continued to lure victims with assurances that profits from eAgency, Inc. and Mymobilewatchdog, Inc. were “just around the corner.” They claimed to have partnerships with large internet companies and prominent mobile carriers. They showed clients newspaper articles and televised interviews featuring Lotter to cement victims’ confidence in their investments and mitigate concerns victims had about their investments and the continued delays of their investment returns.

Lotter’s companies, eAgency, Inc. and Mymobilewatchdog, Inc., had poor financial statuses including unpaid financial obligations to prior investors. Lotter and Major did not make their clients aware of the poor financial statuses of the companies and they did not notify victims when the alleged lucrative partnerships fell through. Victims were led to believe their investments in eAgency, Inc. and Mymobilewatchdog, Inc. were still viable.

Lotter and Major were booked into Orange County Jail. Bail was set at $4 million for Lotter and $2 million for Major. This case is being prosecuted by the Major Fraud Unit of the Orange County District Attorney’s office. The Department is also taking the appropriate administrative action against the licensees and the various insurance agencies they managed.

O.C. security guard arrested for pretending to be a Federal agent

Posted on August 25, 2020 by Editor Posted in California Department of Justice, Crime, Federal Government, Justice, Orange County, Santa Ana 1 Comment

SANTA ANA, California – A private security employee at an Orange County retirement community was arrested today on a criminal complaint alleging he pretended to be a federal agent.

Donovan Pham Nguyen, 34, of Riverside, is charged with one count of false impersonation of a federal officer or employee, according to a criminal complaint unsealed today. He is scheduled to make his initial appearance this afternoon in United States District Court in Santa Ana.

According to an affidavit filed with the complaint, Nguyen for years pretended to be a special agent with Homeland Security Investigations (HSI) and used the false title to obtain things of value. Nguyen never worked for HSI, although he previously was a privately contracted security guard at a Department of Homeland Security (DHS) facility. He left that job in 2015 after an internal investigation was launched resulting from allegations that he printed fake HSI identification documents, the affidavit states.

In May 2019, while employed for a private security company at a retirement community in Orange County, Nguyen allegedly claimed his false title to agents with the U.S. Department of State’s Diplomatic Security Service (DSS) preparing to execute an arrest warrant.

In June 2020, Nguyen discussed a potential criminal investigation with members of the Riverside County District Attorney’s Office after an introduction from a mutual friend. At the meeting, Nguyen again purported to be an HSI employee, according to the affidavit. Following the meeting, Nguyen informed the District Attorney’s Office that, after discussing the matter with his supervisor, HSI could not assist the district attorney in the investigation.

Nguyen allegedly used a false DHS identification to purchase firearms, which allowed him to avoid taking and paying for certain firearm safety courses required by California law. He also used his purported duties as an HSI special agent to excuse his frequent absences from work at a private security firm.

His coworkers at the private security firm reported seeing an HSI badge, a DHS plaque, and various tactical gear, including a ballistic shield, inside of Nguyen’s office. They also reported that Nguyen’s personal vehicle had been equipped with red and blue lights and a siren, the affidavit states. Nguyen also handed out HSI memorabilia, mugs and coins to people at that office.

Nguyen’s LinkedIn social media profile posted his current employment as “Department of Homeland Security Agent,” indicating he was employed with DHS since June 2008. Nguyen also appeared in a YouTube video that purports to be an interview of him as a long-time HSI special agent discussing immigration policies, according to the affidavit.

A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

If convicted, Nguyen would face a statutory maximum sentence of three years in federal prison.

Homeland Security Investigations and U.S. Immigration and Customs Enforcement’s Office of Professional Responsibility investigated this matter. These DHS agencies received assistance from the Riverside County District Attorney’s Office, the U.S. Department of State’s Diplomatic Security Service, and the Orange Police Department.

This case is being prosecuted by Assistant United States Attorneys John A. Balla and Jerry C. Yang of the Riverside Branch Office.

Two new defendants charged in the fatal kidnapping of a Santa Ana car dealer

Posted on July 17, 2020 by Editor Posted in California Department of Justice, Chinese, Crime, Federal Government, Justice, Los Angeles County, Santa Ana Leave a comment

LOS ANGELES – Two men from the San Gabriel Valley were charged today in federal court for allegedly participating in the kidnapping of Ruochen “Tony” Liao, a Chinese national (who was a car dealer in Santa Ana) who was violently abducted from a mall parking lot in San Gabriel two years ago, and whose parents were extorted for $2 million in ransom before Liao died from his injuries.

Anthony Valladares, 28, of Pasadena, and Alexis Ivan Romero Velez, 24, most recently a resident of Azusa, were taken into custody Tuesday during the execution of search warrants by FBI agents and members of the San Gabriel Valley Safe Street Task Force. Federal prosecutors this morning filed a criminal complaint in United States District Court that charges both Valladares and Romero with one count of kidnapping.

Previously in this investigation, two Chinese nationals were charged in a four-count indictment alleging they kidnapped Mr. Liao and attempted to collect $2 million in ransom from Mr. Liao’s family in exchange for the victim’s life. Guangyao Yang, 26, and Peicheng Shen, 34, whose last known U.S. residences were in West Covina, were charged with conspiracy to kidnap, kidnapping, attempted extortion in violation of the Hobbs Act, and threat by foreign communication. Yang and Shen are currently in custody in China on charges filed there related to the kidnapping.

During the investigation, the FBI learned that Valladares and Romero worked with Yang and Shen to conduct the kidnapping, during which Liao was repeatedly beaten and tased into submission, according to the affidavit in support of the complaint. Valladares was the “muscle” hired to intimidate, beat and subdue Liao during the kidnapping, and Romero was the driver of the vehicle used in the kidnapping, according to the affidavit.

Valladares and Romero were arrested Tuesday after making statements about their roles in the kidnapping to investigators. According to the affidavit, Valladares admitted that he was hired to assist in the kidnapping, agreed to accept $1,000 for the job, and restrained Liao during the kidnapping. Romero admitted, according to the affidavit, that he was recruited by Valladares and was the driver during the kidnapping.

After Liao was kidnapped on July 16, 2018, his parents in China received ransom demands and “proof-of-life” photos suggesting that Liao had been badly beaten, blindfolded, and tied up with duct tape. Liao’s parents were told to deposit the ransom payment into Chinese bank accounts within three hours, according to court documents.

Investigators believe Liao was held captive in a closet at a residence in Corona. During his captivity, investigators believe Liao was frequently beaten and ultimately died the night of July 17. During the early morning of July 18, investigators believe Yang and Shen drove to the desert near the town of Mojave to bury Liao’s body.

On July 26, 2019, the FBI laboratory used DNA testing to identify Liao’s remains, which were recovered following a search by the FBI’s Evidence Response Team.

Valladares and Romero are expected to make an initial appearance in U.S. District Court in Los Angeles this afternoon.

A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

The kidnapping charge carries a statutory maximum penalty of life in federal prison.

The investigation into the kidnapping is being conducted by the Federal Bureau of Investigation, with significant assistance by members of the FBI’s Safe Street Task Force, which includes the Pasadena Police Department.

This case is being prosecuted by Assistant United States Attorneys Julia Choe of the Cyber and Intellectual Property Crimes Section and Frances Lewis of the Public Corruption and Civil Rights Section.