Law Enforcement

SACRAMENTO – Attorney General Edmund G. Brown Jr. announced today that special agents with the Department of Justice, working closely with the Department of Resources Recycling and Recovery (CalRecycle), have shut down three beverage-container recycling fraud rings in which rogue entrepreneurs trucked millions of cans and bottles from Arizona and Nevada to illegally claim California Redemption Value (CRV) refunds.

In total, the fraud rings robbed the state of more than $3.5 million used to operate the state’s recycling program as well as to promote recycling throughout California. Thirty-one individuals have been arrested in connection with these fraudulent activities.

“These bands of thieves have been caught red-handed running tons of cans and bottles from across the state’s border and fraudulently collecting money through the California Redemption Value program,” Attorney General Brown said. “Defrauding the state’s recycling program is not a way to make easy money. We are looking for you and you will be caught.”

Conviction of redemption fraud and the importation of recyclable materials is a felony if the redemption amount is over $400.

In one case originating in Nevada, a ring imported to California 1.6 million pounds of cans and bottles – enough, if not compacted, to fill 464 18-wheelers.

In another case, cans were not only hauled from the Phoenix area to Moreno Valley for the CRV deposit, they were filled with sand to add weight for an increased deposit return.

In a third case, agents looking for one recycling fraud suspect along Interstate 8 observed yet another truck carrying thousands of cans. That observation spurred a two-month investigation, resulting in the arrest of the owner of a recycling center and three other suspects.

California is one of 11 states with a bottle and can redemption program. Among its neighbors, Oregon has a program, but Nevada and Arizona do not. When a person purchases a bottle or can in California, the CRV is paid at the checkout stand. When the container is redeemed at one of the state’s 2,000 recycling facilities, the CRV is returned to the consumer. For beverage containers weighing less than 24 ounces, the CRV is 5 cents; for containers 24 ounces and greater, the CRV is 10 cents. For aluminum, the CRV equals $1.57 per pound.

When an out-of-state can or bottle is fraudulently redeemed in California, the program loses money because money is paid out for a container for which the CRV was never paid. This robs the CRV program, which relies on unclaimed CRV to administer the program and support a variety of activities that promote recycling across the state.

"Recycling fraud is a crime against California consumers and we take it very seriously,' said CalRecycle Director Margo Reid Brown. 'Our inspectors work closely with state and local law enforcement to root out and prosecute criminals who steal the money used to repay Californians and support our state's recycling programs. These arrests are evidence that recycling fraud will not be tolerated.'

California’s program began in 1987, following legislation passed in 1986. Today, about 80 percent of bottles and 84 percent of aluminum cans purchased in the state are returned for recycling.

“Californians are doing a great job recycling their bottles and cans,” added Attorney General Brown. “We don’t want people intent on committing recycling fraud to harm a program that is working well.”

To combat recycling fraud, CalRecycle staff visits major recycling processors to inspect loads of beverage containers delivered for CRV reimbursement. In 2009, the department removed 25 recycling centers from the state program for submitting fraudulent claims. CalRecycle refers recycling fraud cases to the Department of Justice for criminal investigation and prosecution.

Here’s how the three recycling fraud rings were broken up in April by the Department of Justice:

1. Department of Justice special agents observed Mariano Dejesus-Solis collecting and storing recyclable materials at his Las Vegas residence, as well as at several storage facilities in North Las Vegas. Twice a week, Dejesus-Solis and his accomplices drove 16-foot and 24-foot rental trucks filled with approximately 5,000 pounds of aluminum cans and bottles to a storage facility in Montclair (San Bernardino County) where the loads were parceled out to accomplices who would take them to recycling centers. The group defrauded the CRV program an estimated $2.5 million by illegally importing more than 1.6 million pounds of cans and bottles. On April 8, 15 suspects were arrested in Riverside and San Bernardino counties, with assistance from local law enforcement.

2. In the Phoenix area, a group collected used beverage containers from consumers and purchased some from recycling centers at a reduced rate and then transported them to a residence in Moreno Valley (Riverside County). Daily, members of this group took multiple smaller loads to the Perris Valley Recycling Center (Riverside County) to redeem the CRV refund, defrauding the CRV fund an estimated $1 million. On April 20, a search warrant resulted in the seizure of 50,000 pounds of bottles and cans, with an estimated CRV value of $100,000. Many cans contained sand to add weight. Twelve people were arrested.

3. On Interstate 8 near Winterhaven, Calif. and Yuma, Ariz. agents with the Imperial County and San Diego Major Crimes Teams were looking for a CRV fraud suspect when they encountered another suspected CRV fraud ring -- two men transporting a large quantity of aluminum cans in a truck. This observation launched a two-month investigation, with assistance from CalRecycle, which resulted in the April 23 arrests of four people, including Michael Barshak, the owner and operator of ACE Recycler, a recycling center in San Diego. Agents have initially estimated that the ring’s operation, which spanned four months, transported 40,000 pounds of cans with an approximate value of $135,000.

These investigations were conducted by the Attorney General’s Division of Law Enforcement/Bureau of Investigation and Intelligence (DLE-BII) Major Crimes Team and CalRecycle, with assistance from many other law enforcement agencies including the offices of the San Bernardino and Riverside County Sheriffs, the Riverside County District Attorney’s Office, the California Highway Patrol, Immigration and Customs Enforcement, the United States Marshals Service and other Dept. of Justice enforcement teams.

To learn more about CalRecycle and the California Beverage Container Recycling Program, visit http://www.calrecycle.ca.gov/. CalRecycle contact: Mark Oldfield (916) 319-9942 or mark.oldfield@CalRecycle.ca.gov.

Photos and a list of arrestees are attached.

HOLLISTER - Attorney General Edmund G. Brown Jr. today announced that a former CVS pharmacy technician and her husband have been charged with 15 felony counts after the woman embezzled tens of thousands of highly addictive prescription pills worth $400,000 from her employer to supply to her drug-dealing husband.

Aimee and Alfred Riaski, both 41 and from Hollister, were arrested after an investigation by Brown’s Bureau of Narcotic Enforcement led to the recovery of more than 1,500 prescription tablets at the couple’s residence. If convicted, Aimee Riaski faces a maximum of 13 years, 8 months in jail and Alfred Riaski faces a maximum of 8 years, 4 months in jail.

“The Riaskis crafted a crude scheme to embezzle highly addictive pain pills from a neighborhood pharmacy and sell them at a profit on the streets,” Brown said. “Today’s criminal charges send a clear reminder to pill pushers that selling prescription drugs can lead to serious time behind bars.”

Brown’s Bureau of Narcotic Enforcement initiated its investigation into Aimee Riaski in February after an internal pharmacy audit at a Gilroy CVS revealed tens of thousands of missing prescription-drug tablets.

As a CVS pharmacy technician, Aimee Riaski was responsible for tracking the delivery of various prescription drugs. In this role, Riaski admitted to a CVS loss-prevention officer that she stole some 40,000 Vicodin (Hydrocodone) tablets over a 10-month period beginning in early 2009.

On February 19, Brown’s office served a search warrant at the Riaski residence in Hollister and recovered prescription drugs worth almost $17,000, including:
• 1,134 Vicodin tablets
• 305 Diazepam tablets
• 212 Darvon tablets
• 62 Ativan tablets
• 9 Lidocaine patches

The complaint, filed today by the San Benito District Attorney, alleges that the Riaskis embezzled, possessed, transported, and planned to sell thousands of highly addictive prescription drugs on the streets.

Aimee Riaski was charged with ten felony counts including: five counts of possession for sale of a controlled substance (H&S 11351(a) and H&S 11375(b)(1)); four counts of transporting a controlled substance (H&S 11352(a)); and one count of embezzlement (PC 504).

Alfred Riaski was charged with five felony counts of possession for sale of a controlled substance (H&S 11351(a) and H&S 11375(b)(1)) and one misdemeanor count of receiving stolen property (PC 496 (a)).

Aimee and Alfred Riaski, who were originally arrested in February, posted $30,000 and $20,000 bail, respectively. Both defendants pleaded not-guilty in court today.

Brown has made combating prescription-drug abuse a top priority by investigating and filing charges in more than 200 cases against physicians who have abused their trust, prescription-drug dealers who have peddled highly addictive pills and patients who have attained drugs by “doctor shopping” from doctor to doctor.

Last month, for example, Brown announced the arrest of a San Diego-based doctor, Mohammed Kady, who regularly prescribed pain medication, including Vicodin and codeine cough syrups to drug addicts and pill pushers without any justifiable medical purpose.

Brown’s office is also currently investigating a Southern California prescription-drug ring that operates by ordering prescription-drug pads from authorized vendors and using identities stolen from doctors. The pads are then either sold on the street to prescription-drug addicts or to individuals who are paid to fill the prescription and then sell the drugs on the underground market. The investigation has thus far linked 4,500 to 5,000 fraudulent prescriptions to the fraud ring and has led to one arrest.

California is at the forefront of technology that makes it more difficult for criminals to operate prescription- drug rings. Brown’s office has introduced significant technology upgrades to the state’s prescription- monitoring program, known as CURES, by creating an accessible, online database. The database is a critical tool in assisting law enforcement investigations. For more information on CURES visit: http://ag.ca.gov/bne/CURES.php.

The criminal complaints, filed today in San Benito County Superior Court, are attached.

LOS ANGELES – Attorney General Edmund G. Brown Jr. today announced that agents from his office seized $1.5 million worth of drugs, including 79 pounds of methamphetamine and 11 pounds of cocaine, $30,000 in cash and eight firearms in another successful drug bust in Southern California Thursday night.

Ramon Salazar Camargo, 33, and his accomplice, Jesus Lopez, 21, were arrested Thursday night and are being held in Los Angeles County Jail on $3 million bail each.

“Little by little, bust by bust, we are sending the message to drug dealers that we are not going to allow them to operate in California,” Brown said. “We will track down, arrest and prosecute these criminals vigorously and relentlessly.”

Thursday’s arrests and seizures are the result of a successful “buy bust” operation conducted by agents from Brown’s Bureau of Narcotic Enforcement (BNE). Camargo and Lopez were arrested after negotiating a drug deal and delivering 20 pounds of methamphetamine to undercover agents in the parking lot of a Bell Gardens strip mall. After the initial seizure, officers executed a search warrant on a Los Angeles residence kept as a “stash house” where they seized additional methamphetamine, cocaine, firearms and currency.

Agencies involved in Thursday’s operation included Brown’s BNE Major Narcotics and Violence Team, Imperial County Narcotic Task Force, and Los Angeles Interagency Metropolitan Police and Crime Task Force.

LOS ANGELES – Attorney General Edmund G. Brown Jr. today announced that state narcotics agents seized 119 pounds of ice methamphetamine and 85 pounds of heroin in two separate operations in Southern California last night.

The two drug busts by Brown’s Bureau of Narcotic Enforcement also netted two pounds of cocaine and more than $33,000 in cash. Three suspects are in custody: Marco Alejo, 44, of Moreno Valley, Jorge Gonzalez, 39, of Torrance, and Sarah Magdalena Altamirano, 40, of Torrance.

“We’ve been fighting to keep dangerous, addictive drugs like methamphetamine and heroin off our streets,” said Brown. “Last night’s drug busts send another unequivocal message that California will do everything it can to arrest and lock up these callous purveyors of death and addiction.”

In last night’s raids, agents served a search warrant at 1507 South Palmetto Street in Ontario. During the subsequent search, agents discovered 81 pounds of methamphetamine hidden in a closet in an upstairs bedroom. Marco Alejo was seen leaving the residence and was later detained by police and placed under arrest.

A few hours later, agents placed a home at 1018 West 223rd Street in Torrance under surveillance. When Jorge Gonzalez and his wife, Sarah Magdalena Altamirano, left the home in a pick-up truck, investigators followed. Officers stopped and searched their vehicle, discovering a suitcase containing 39 cellophane-wrapped one-pound packages of brown powder heroin. Both Gonzalez and his wife Altamirano were arrested.

Investigators then searched their residence and found approximately 46 pounds of black tar heroin, 38 pounds of ice methamphetamine, 2 pounds of cocaine and more than $33,000 in cash.

Alejo, Gonzalez and Altamirano are being held on $1 million bail.

State agents were joined in the raids by the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force (L.A. IMPACT), Ontario Police Department, Pomona Police Department and California Highway Patrol.

SALINAS – Attorney General Edmund G. Brown Jr. announced that more than 200 agents from his Gang Suppression Enforcement Program and other law enforcement agencies today arrested 37 members of two vicious gangs responsible for a rampage of violence -- including more than three dozen murders and 200 shootings -- that terrorized the citizens of Salinas and nearby areas.

Today’s mass arrests was the culmination of an eight-month operation, code-named “Operation Knockout,” aimed at apprehending members of the Norteños and Sureños gangs that turned Salinas into a hub of murder, robbery and drug dealing.

The operation targeted the most dangerous gang leaders in the Salinas area. In addition to the arrests made today, agents seized 40 pounds of cocaine, 14 pounds of marijuana, nine ounces of methamphetamine, $34,000 in cash, and 12 guns. An additional 57 arrests were made before today’s sweep.

“Operation Knockout was designed to restore safety to the streets of Salinas,” said Brown. “Citizens in John Steinbeck’s hometown deserve better than having to endure a violent crime rate that’s three times the national average. We owed it to the people of Salinas to arrest these out-of-control gang members and ensure a heightened sense of personal security throughout the city.”

Some 44 state and federal search warrants were served throughout Salinas, San Jose and other areas of Monterey County. Today’s arrests dealt a major blow to the Norteños and Sureños, two of Monterey County’s largest gangs, who are major distributors of powder cocaine, rock cocaine, and crystal methamphetamine throughout the county and are linked to dozens of homicides and shootings.

Brown also announced today that he has formed a task force to maintain today’s crackdown against drugs and major crimes. The Monterey County Narcotic and Violence Task Force will be overseen by the California Department of Justice and will include the California Highway Patrol, Marina Police Department, Monterey County Sheriff’s Office, Monterey Police Department, Salinas Police Department and Seaside Police Department.

In 2008 and 2009, there were 55 homicides in the city of Salinas. Based on the city’s population of 148,000, its violent crime rate was more than three times the national average. Only two of the 55 homicides were unrelated to gang violence. During this same reporting period, there were more than 200 reported shootings related to gang violence.

To combat the violence permeating the city, Brown deployed his Gang Suppression agents to work with the Salinas Police Department in a proactive approach to the gang problem. Special Agents identified the key gang leaders and created a complex investigative plan intended to make a significant impact on violent crime in the city. During the investigation, agents determined that much of the violence stemmed from a struggle between the Norteños and Sureños street gangs within Salinas over turf dominance, and more significantly, over control of illicit drug trafficking. The gangs ruled through intimidation and violence.

“Today’s operation has been a masterpiece of cooperation between federal, state and local law enforcement agencies,” said Salinas Police Chief Louis Fetherolf. “Today is day-one of Judgment Day!”

Today’s arrests come in addition to 57 prior arrests during the eight-month operation. Over the course of the investigation, agents identified a large cocaine and methamphetamine distribution group that was controlled by Norteños gang members operating in Salinas. The illegal drugs were supplied by Mexican drug-trafficking organizations.

More than 200 state, local and federal law enforcement personnel participated in today’s operation. The Attorney General’s Gang Suppression Enforcement Program is part of the Bureau of Narcotic Enforcement.

Other law enforcement agencies that assisted with today’s operation included the Bureau of Alcohol, Tobacco, Firearms and Explosives; California Department of Corrections and Rehabilitation; California Highway Patrol; Federal Bureau of Investigation; Monterey County District Attorney’s Office; Monterey County Sheriff’s Department; Salinas Police Department; United States Attorney’s Office, Northern District of California; and U.S. Immigration and Customs Enforcement.

SAN DIEGO – Attorney General Edmund G. Brown Jr. announced today that members of his office are working with law enforcement officials from Baja California as part of sweeping changes the Mexican government is making to its legal system.

“We will help our southern neighbor become more transparent and open,” Brown said.

Starting today, 80 prosecutors and agents from the Mexican state of Baja California will attend two days of classes at the Law Enforcement Coordination Center in El Centro (Imperial County). Agents with the California Attorney General’s Office, joined by officials from the Imperial County District Attorney’s Office, as well as from the Imperial County Sheriff’s Department, will teach sessions on topics such as case preparation and the handling of evidence.

The centuries-old Mexican legal system, which stems from the Napoleonic era, involves closed hearings, written inquisitions and a presumption of guilt. In 2008, the Mexican government approved a constitutional amendment to replace much of its system to make it more like the legal system of the United States. The transformation, which will alter both how evidence is collected and how trials are conducted, is expected to be complete by 2016.

Rommel Moreno, the Attorney General of Baja California, asked Attorney General Brown for assistance as Baja California joins 30 other Mexican states to change its system. The U.S. federal government, along with law enforcement agencies around the country, is also assisting Mexico with the transition.

“After these changes are complete, Mexico’s legal system will be more transparent and open, which will improve the strength of the country’s democracy,” said Brown. “We will help our southern neighbor in this transition.”

This week’s training of Baja California officials is being coordinated by the Attorney General’s foreign prosecution and law enforcement unit, a part of the Division of Law Enforcement’s Bureau of Investigation and Intelligence. The unit works with Mexican officials in apprehending suspects in the United States who are wanted for crimes in Mexico, as well as enlisting the help of Mexican officials in solving crimes in California.

In December 2009, the unit assisted Mexican officials in apprehending and extraditing Sandra Cruz Villa, who was living in Lake County and was suspected of a triple murder. She awaits trial in Mexico. For more information about the unit, please see http://ag.ca.gov/cbi/foreign.php.

SAN DIEGO—Attorney General Edmund G. Brown Jr. today announced the arrests of a doctor and two employees operating a “complex, multi-level scheme” that bilked more than $200,000 from low-income patients and government agencies by overcharging and prescribed pain medication to individuals who had no medical need for it.

Beginning in 2007, the three individuals arrested Wednesday perpetrated their scheme to defraud state and federal health insurance programs and patients in the San Diego area.

“These individuals operated a complex, multi-level fraud scheme,” Brown said. “Today’s arrests are a result of the cooperative efforts of state and federal law enforcement to take this dirty doctor off the streets.”

The individuals arrested today include Dr. Mohammed Tarek Kady, 55, Mario Ramirez Zarco, 31, and Ana Audelo, 23, all three from Chula Vista.

All three individuals were charged with violating California Penal Code sections 182(a)(1), 182(a)(4), 487(a), and 550(b)(3) for conspiring to cheat and defraud, to commit grand theft, and commit insurance fraud.

In addition, Kady was also charged with:
• One count of violating California Welfare and Institutions Code section 14107(b)(4)(A) for Medi-Cal fraud
• Five counts of violating California Penal Code section 487(a) for grand theft
• Three counts of violating California Penal Code section 550(a)(6) for insurance fraud
• Seven counts of violating California Health and Safety Code section 11153(a) for illegal prescribing
• One count of violating California Labor Code 3700.5(a) for failing to obtain worker’s compensation for employees
• Special Allegations of theft, including theft in excess of $100,000.

The arrests are the result of a cooperative effort between Brown’s office, the San Diego District Attorney’s Insurance Fraud Task Force, the Federal Bureau of Investigation (FBI), San Diego Health Care Fraud Squad and San Diego Organized Crime Squad, the California Department of Industrial Relations, and the federal Drug Enforcement Administration (DEA), Tactical Diversion Squad.

In February 2009, an Anthem Blue Cross investigator reported Kady’s pediatric office in Chula Vista was unlawfully charging fees to patients enrolled in state and federal health insurance plans.

Two of Kady’s employees, Mario Zarco and Ana Audelo, unlawfully charged patients $50 to $500 for assistance in enrollment in state and federal health insurance coverage. Kady himself unlawfully charged patients an additional $200 to $300 fee to examine their newborn children in the hospital.

Investigators estimate that Kady unlawfully charged more than $60,000 for services to individuals and families enrolled in state and federal health insurance coverage.

Brown’s investigation also showed Kady frequently traveled out of the country for several weeks at a time but continued to charge for his services at his Chula Vista office. Reimbursement claims indicate Kady charged more than $160,000 for services when, in reality, he was out of the country.

In addition to overcharging for services and charging for services never performed, Kady prescribed pain medication to individuals without any justifiable medical purpose, enabling patients apparently “doctor shopping” for drugs. Kady wrote prescriptions for opiates, including the narcotic, Vicodin, and codeine cough syrups to drug addicts abusing the drugs and illegally selling them. On seven DEA sting operations, most recently last month, Kady prescribed narcotics without medical justification.

Kady’s patients were instructed to fill their pain medication prescription at one San Diego pharmacy. An employee at the pharmacy became suspicious after dozens of individuals attempted to fill prescriptions, written by Kady, at the pharmacy each Friday. The investigation revealed Kady and the pharmacy owner had a quid pro quo arrangement in which the pharmacy would kick back some $3 per prescription.

According to the Medical Board of California, Mohammed Tarek Kady was licensed as a physician in December 1997. He is a family practitioner with board certification in Pediatrics, and maintained two clinics, one in Chula Vista and one in San Diego.

If convicted of all charges, Kady faces as much as 20 years in prison. Zarco and Audelo face up to 6 years in prison if convicted of all charges.

“The Drug Enforcement Administration is committed to keeping the San Diego community safe from doctors who enable the abuse of prescription drugs”, says Special Agent in Charge Ralph W. Partridge. “The suspension of Doctor Kady’s controlled substance privilege is an important step toward ensuring accountability of those who supply controlled substances illegally”.

A copy of the complaint filed in San Diego Superior Court is attached. Photos of the defendants are also attached.

SANTA ANA — In a clear “warning shot” to unscrupulous loan-modification consultants, Attorney General Edmund G. Brown Jr. today announced that two women have each been sentenced to one year in jail and ordered to repay dozens of homeowners who were charged thousands of dollars in up-front fees for non-existent foreclosure-relief services.

Marianne Curtis, 69, of Costa Mesa and Mary Alice Yraceburu, 46, of Riverdale, who operated Fresno and Orange County-based Foreclosure Freedom, pleaded guilty last month to 71 criminal counts, including grand theft, conspiracy and unlawful foreclosure consulting. Both will serve one year in Orange County jail and an additional four years of probation.

“Curtis and Yraceburu shamelessly exploited homeowners desperate to avoid foreclosure, charging up to $1,800 in up-front fees for loan modifications that were never delivered,” Brown said. “Today’s jail sentences send a warning shot to loan-modification consultants: If you swindle homeowners, you face serious time behind bars.”

Brown’s office initiated its investigation into Curtis and Yraceburu in early 2008 after receiving a complaint from the Tulare County District Attorney. Charges were filed in Orange County Superior Court on March 19, 2009, against the defendants, and both pleaded guilty on March 24, 2010.

Brown’s investigation located victims in many California towns and cities: Antelope, Avenal, Bakersfield, Crows Landing, Elk Grove, Fairfield, Fresno, Galt, Hanford, Hayward, Hollister, Kingsburg, Mendota, Modesto, Petaluma, Placerville, Richmond, Ridgecrest, Rio Linda, Sacramento, Salinas, San Leandro, Simi Valley, Stockton, Taft, Vacaville, Vallejo and Ventura.

In addition to today’s jail sentences, Curtis and Yraceburu were ordered to repay 36 victims a total of $32,040. If eligible victims not named in the complaint come forward, the court can order additional repayment throughout the defendants’ probation term. As a condition of today’s sentence, both defendants are also prohibited from any future work in the telemarketing and real estate industries.

Brown’s investigation found that from April 2007 until February 2008, the two women paid for access to foreclosure listings so they could directly solicit hundreds of homeowners underwater on their mortgages with mailers promising relief.

When homeowners called the number on the mailer, they were told their mortgages could be renegotiated to a lower monthly payment. Victims, however, were required to pay up to $1,800 in up-front fees and were instructed not to contact their lenders.

Victims were assured the company had “private lenders and specialists exclusive to their company who are very experienced in the options and methods used to renegotiate home loans,” yet neither of the women who operated the company had real estate licenses, legal training or any experience in the home mortgage market.

Investigators found no evidence they had negotiated any successful loan modifications, and most of the victims were either forced into bankruptcy or lost their homes to foreclosure. Bank account records revealed the defendants took over $120,000 from unsuspecting homeowners.

Both Curtis and Yraceburu pleaded guilty to all 71 criminal counts including:
• 34 counts of unlawful foreclosure consulting
• 29 counts of grand theft
• 7 counts of attempted grand theft
• 1 count of conspiracy

By law, all individuals and businesses offering mortgage-foreclosure consulting or loan-modification and foreclosure-assistance services must register with Brown’s office and post a $100,000 bond. It is also illegal for loan-modification consultants to charge up-front fees for their services.

Non-profit housing counselors certified by the U.S. Department of Housing and Urban Development provide free help to homeowners. To find a counselor in your area, call 1-800-569-4287.

If you are a homeowner who has been scammed, contact Brown’s office at 1-800-952-5225 or file a complaint online at: www.ag.ca.gov/consumers/general.php.

Brown has sought court orders to shut down more than 30 fraudulent foreclosure-relief companies and has brought criminal charges and obtained lengthy prison sentences for dozens of other deceptive loan-modification consultants. Last month, Brown secured a court judgment that shut down two Orange County-based foreclosure-assistance companies, secured $1 million in restitution for victims and prohibited three individuals from ever working in the real estate industry again.

For more information on Brown’s action against loan-modification fraud visit: http://ag.ca.gov/loanmod.

A copy of the amended complaint, filed in Orange County Superior Court, is attached.

SAN FRANCISCO—Attorney General Edmund G. Brown Jr. said six individuals arraigned today on identity theft charges “wreaked financial and emotional havoc” on victims by making tens of thousands of dollars in fraudulent charges in their names. The defendants face multiple felony counts of identity theft, conspiracy, possession of stolen property, and grand theft.

The identity theft ring was able to steal 20 identities and over $170,000 worth of cash, expensive clothing, jewelry and accessories. They bought flat screen TVs, a Gucci watch and $31,000 worth of merchandise from Neiman-Marcus. Members of the ring raised cash by returning items bought using fake identities.

“This criminal identity theft ring wreaked financial and emotional havoc on the victims, who will now endure hours of work fixing their credit and rebuilding their lives,” Brown said. “It’s important to keep these fraud rings from ripping off other victims.”

The six defendants face charges of violating California Penal Code section 182 for conspiring to commit identity theft, section 484 for theft, section 530.5 for identity theft, and section 496 for possession of stolen property. Possible sentences for each defendant range from a minimum of four years to a maximum of 27 years and four months.

The individuals facing charges today include:
• Matthew Medlin, 31, of Campbell.
• Jessica Campos, 30, of Santa Clara, also faces charges of violating California Penal Code section 502(c) for using dental office clients’ personal information.
• Chev Chan, 31, of San Jose, also faces charges of violating California Penal Code section 496 for receiving stolen property.
• Quang Le, 32, of Santa Clara. Le also faces charges of violating California Penal Code section 487 for grand theft.
• Daniel Lee Lesly, 31, of Los Altos. Lesly also faces charges of violating California Penal Code section 487 for grand theft.
• Nick Phuong Luu, 29, of Vallejo. Luu also faces charges of violating California Penal Code section 487 for grand theft, and section 496 for receiving stolen property.

In late 2009, Brown’s office was notified by the U.S. Postal Inspection Service that several individuals reported their social security numbers had been illegally used to apply for credit cards. The credit card information was sent to a San Jose residence later discovered to be the home of Chev Chan.

The subsequent investigation revealed that between June and December of 2009, the defendants, along with other unnamed suspects, engaged in an identity theft spree throughout the Bay Area. The ring’s leaders, Nick Luu and Chev Chan, used several San Jose, Santa Clara, Sunnyvale, and Campbell addresses to divert the victims’ mail. Luu and Chan also had victims’ mail sent through false change-of-address forms and opened five Post Office boxes in San Jose.

Most of the victims’ identities were stolen from clients at a San Jose law office and Santa Clara dental office where two of the defendants worked.

During a search of Nick Luu’s residence, Brown’s office found 10 dental claim forms that contained patients’ names, addresses, dates of birth and social security numbers. The forms were given to Luu by Jessica Campos, an employee of the Santa Clara dental office, to use to manufacture fake identities. Campos was told by leaders in the ring to obtain current employers and addresses of Asian males who were about the same ages as the conspirators. As a result of Campos’ involvement, three dental office patients had their personal information used to make fraudulent purchases.

Chev Chan, used stolen identities to open Discover, Bank of America, and Chase credit cards while he worked at the San Jose law office. Chan used his work computer to change account addresses and open fraudulent credit card accounts under two victims’ names. Chan also used his employment address to receive mail and open two Post Office boxes under the victims’ names.

One of the defendants, Quang Le, was seen on video surveillance at Zales Jewelers in Eastridge Mall making a fraudulent purchase of $4,400. Le also racked up over $31,000 in fraudulent charges at Neiman-Marcus.

The fraud ring also opened fraudulent bank accounts and wrote dozens of checks. Daniel Lesly wrote 15 non-sufficient-funds checks totaling almost $2,000 from an account he fraudulently opened at Bank of America. The checks were written from the account to Target and Lucky’s. Lesly also returned a Gucci watch, previously purchased using a fake identity, and took over $2,000 in cash for the exchange.

To enable him to use the credit cards, defendant Mark Medlin used the victims’ identities to open credit lines and manufacture fake California driver’s licenses. These fraudulent driver’s licenses were used by Nick Luu, Chev Chan, and Quang Le.

Additional items purchased with the stolen identities include:
• A watch worth $8,150 from Ben Bridge Jewelers
• Merchandise worth $6,402 from Nordstrom
• A 55” flat screen television worth $3,277 from Sears online
• A 40” flat screen television worth $1,509 from Sears online
• Comforters and bedding worth $725 from Macy’s
• A Movado watch worth $1,281 from Kay’s Jewelers
• A Tag Heuer watch worth $4,485 from Macy’s
• Jewelry worth $8,150 from Ben Bridge Jewelers

A copy of the complaint available upon request.

Los Angeles—Attorney General Edmund G. Brown Jr. announced today that the state DNA Data Bank has now matched 12,000 crime scene DNA samples to violent offenders and other suspects, helping to “secure thousands of convictions” of rapists, murderers, and kidnappers.

The DNA Data Bank’s 12,000th match was made at the state DNA database facility in Richmond. On average, the DNA Data Bank receives 300 hits per month. In March, the Data Bank had 405 DNA matches, the most ever in a single month.

“This is a remarkable milestone in the advancement of criminal justice technology,” Brown said. “The DNA database has been used in over 12,000 investigations and contributed to thousands of convictions of the most violent criminals. Otherwise, these crimes are likely to go unsolved.”

Recent notable cases in which the California Department of Justice assisted local law enforcement in the apprehension of dangerous sexually violent predators through DNA evidence include:

• In February, John Gardner III, a convicted sex offender, was arrested on suspicion of rape and homicide in the disappearance of Chelsea King, a 17-year-old high school student from San Diego County who went jogging in a park. She was found in a shallow grave in the park.
• In January, David Joseph Carpenter, a Death Row inmate also known as the “Trailside Killer”, was linked by DNA evidence to the killing of Mary Bennet, who was stabbed to death in San Francisco. The crime occurred in 1979. (Additional cases are listed below.)

The DNA Data Bank has been in operation since 1994 and contains over 1.5 million DNA samples. Approximately 25,000 samples are added to the database each month.

A voter-approved initiative in 2004, Proposition 69, required all defendants convicted of a felony to submit a DNA sample. On January 1, 2009, this requirement was extended to all adults arrested on felony charges.

In criminal investigations each day, state and local law enforcement agencies submit evidence from crime scenes to one of California’s seven Department of Justice crime labs or 15 local labs with forensic DNA capability. These labs try to establish DNA profiles to identify the perpetrators.

The DNA profiles then are uploaded to California’s database and sent to the national Combined DNA Index System (CODIS), which indexes samples for searching in categories such as convicted offenders, arrestees, crime scene samples, missing persons, relatives of missing persons, and unidentified human remains. DNA from convicted offenders and arrestees is compared with crime scene samples, and crime scene samples are compared to link cases together.

ADDITIONAL CASES WITH DNA MATCHES:

In September 2009, Richard Ramirez, a Death Row inmate known as the “Night Stalker”, was linked to yet another crime: the 1984 killing of a 9-year-old San Francisco girl, Mei Leung, after San Francisco Police Department criminalists reprocessed old evidence in the case to obtain DNA.

In August 2009, a 34-year-old cold case was solved when Dennis Vasquez, 50, of Los Angeles, was arrested and required to submit a DNA sample to authorities. Vasquez’s DNA matched the DNA found at a murder scene in 1975. He is being prosecuted for murder by the Los Angeles District Attorney’s Office.

In March 2009, Ryan Nigel Curtis, 27, of Los Angeles, was arrested for stabbing a man after an argument in Huntington Beach. Curtis’ DNA was obtained from a cigarette pack he left before fleeing.

In May 2008, Alberto Pablo Ruiz, 25, of San Jose, was sentenced to 41 years in prison after he assaulted a female jogger in Alum Rock Park in San Jose. The San Jose Police Department linked Ruiz through DNA evidence found on the victim and at the crime scene. Ruiz’s DNA had been submitted to the database for previous violations.

In March 2008, James Dixon, 37, of Pomona, was sentenced to death after his DNA matched DNA found at a 2001 murder scene in Los Angeles County. The Los Angeles County Sheriff’s office obtained DNA from a cigar tip found in the truck where the victim was murdered. Dixon’s DNA also matched that found in a 1996 home invasion in which two females were raped. The accomplice in the 1996 home invasion and rape had been sentenced to 70 years to life.

In 2001, a woman’s body was found near Mussel Shoals beach in Ventura County. The Ventura County Sheriff’s Office collected DNA and uploaded it into the national DNA database. The sample matched Douglas Dworak, 43, of Oakview, a convicted rapist who had been sentenced to death in 2005.