Law Enforcement

Brown Releases Report Detailing a Litany of Problems with ACORN, But No Criminality

April 1, 2010
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

SAN DIEGO – California Attorney General Edmund G. Brown Jr. today released a report, including newly obtained videotapes, that shows some members of the community organizing group ACORN engaged in “highly inappropriate behavior,” but committed no violation of criminal laws.

Brown’s report also uncovered “likely violations” of state law, including dumping 500 pages of confidential records into a dumpster, failure to file a 2007 tax return, and four instances of possible voter registration fraud by ACORN in San Diego in connection with the 2008 election, as well as other irregularities in the group’s California operations. These irregularities have been referred to the appropriate authorities.

“A few ACORN members exhibited terrible judgment and highly inappropriate behavior in videotapes obtained in the investigation,” Brown said. “But they didn’t commit prosecutable crimes in California.”

Last September, Gov. Schwarzenegger asked Brown to investigate the activities of ACORN in California. His request was triggered by tapes made by undercover videographer James O’Keefe III that purported to show ACORN employees providing advice on how to conduct a prostitution ring and commit other serious crimes.

But new, unedited videotapes discovered through Brown’s investigation, as well as other evidence, shed clearer light on interactions between O’Keefe and the now-defunct ACORN.

Videotapes secretly recorded last summer and severely edited by O’Keefe seemed to show ACORN employees encouraging a “pimp” (O’Keefe) and his “prostitute,” actually a Florida college student named Hannah Giles, in conversations involving prostitution by underage girls, human trafficking and cheating on taxes. Those videos created a media sensation.

Evidence obtained by Brown tells a somewhat different story, however, as reflected in three videotapes made at ACORN locations in California. One ACORN worker in San Diego called the cops. Another ACORN worker in San Bernardino caught on to the scheme and played along with it, claiming among other things that she had murdered her abusive husband. Her two former husbands are alive and well, the Attorney General’s report noted. At the beginning and end of the Internet videos, O’Keefe was dressed as a 1970s Superfly pimp, but in his actual taped sessions with ACORN workers, he was dressed in a shirt and tie, presented himself as a law student, and said he planned to use the prostitution proceeds to run for Congress. He never claimed he was a pimp.

“The evidence illustrates,” Brown said, “that things are not always as partisan zealots portray them through highly selective editing of reality. Sometimes a fuller truth is found on the cutting room floor.”

The original storm of publicity created by O’Keefe’s videotapes was instrumental in ACORN’s subsequent denunciation in Congress, a sudden tourniquet on its funding, and the organization’s eventual collapse.

In New Orleans, O’Keefe faces a maximum sentence of six months in prison and a fine of $5,000 on reduced federal charges related to misrepresentation in gaining access to the Louisiana office telephones of U.S. Senator Mary Landrieu.

Brown’s report found numerous faults with ACORN’s activities in California, including:

• Failure to “recruit, train and monitor its employees to ensure compliance” with state law.

• Likely violation of state civil laws designed to protect personal information when employees of the San Diego office disposed of 20,000 pages of records in a dumpster. These violations could result in private litigation if any of the victims were injured by disclosure.

• Four instances of “possible voter registration fraud in San Diego in connection with the 2008 election.”

• Failure to file a 2007 state tax return, an omission the Franchise Tax Board is pursuing.

• Sloppiness in its handling of charitable assets, although no misuse of those assets was found. The California Attorney General will monitor investigations into ACORN’s overall finances by the IRS and Louisiana Attorney General.

ACORN announced that it is closing its operations nationwide today. While a successor to ACORN in California called ACCE emphasizes that it is no longer part of ACORN, the Attorney General’s report notes that ACCE is “run by the same people, raising concerns about its ability to cure the defects in the organization.” The report notes that the Attorney General will closely scrutinize ACCE’s operations.

The full Attorney General’s report is attached. The unedited O’Keefe videotapes from California are available on the Attorney General’s website at http://ag.ca.gov/newsalerts/multimedia/index.php. Tapes from other states are available on request.

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Brown Anuncia Convicciones de 31 Miembros Pandilleros de la Mafia Mexicana por Extorsión y una Célula de Trafico de Drogas

March 26, 2010
Contact: (916) 210-6000, agpressoffice@doj.ca.gov
El Centro, Calif. –En un 'golpe fatal' a una de las más extensas, organizada y violenta extorsión y operaciones de tráfico de drogas en la historia del Condado de Imperial, el Procurador General Edmund G. Brown Jr. hoy anunció la prosecución exitosa de 31 miembros de una célula de la Mafia mexicana.

Al principio de esta semana, el líder de la célula, Patricio Rafael Ponce, de 44 años, del Condado de Imperial, se declaró culpable de drogas, armas, secuestro y cargos de extorsión, el siendo el último de los 31 miembros de la pandilla a declararse culpable de los cargos presentados por la oficina de Brown. La convicción final concluye la “Operación Gangland,” que comenzó en el 2005 y últimamente cerró una célula mayor de la Mafia mexicana que era desparramada por los Condados de Imperial y de San Diego.

“Esta célula de la Mafia mexicana fue una de la mas violentas de extorsión y redes de trafico de drogas por la región fronteriza de California que jamás se ha visto,” dijo Brown. “Con las convicciones de todos los 31 miembros de la pandilla, nosotros hemos mandado un golpe fatal a su empresa criminal y ellos pasarán un tiempo muy largo, largo en la prisión.”

Originalmente acusados en agosto del 2007, los miembros de la pandilla han colectivamente sido sentenciados a más de 200 años en la prisión.

En el 2005, los oficiales de la Oficina del Procurador General de California, el Departamento de California de Corrección y Rehabilitación, la Administración de Ejecución de Droga de los Estados Unidos, la Oficina de Alcohol, Tabaco, Armas y Explosivos y la Oficina del Fiscal del Condado de Imperial formaron la Agrupación de Fuerzas contra el Crimen Organizado de Drogas para investigar las actividades criminales de la Mafia mexicana.

La investigación descubrió una droga esparcida de contrabando y operación de extorsión dirigida por el líder de la célula de la Mafia mexicana Patricio Ponce. La célula utilizó a 'recaudadores de impuestos' en El Centro, Calexico, Brawley, Heber, Holtville, Calipatria, y Niland para extorsionar fondos de cualquier persona trabajando en actividad ilegal, sea como la venta de droga o contrabando de inmigrantes. Los que se negaban o fallaban en pagar eran atacados por los encargados de hacer cumplir por parte de Ponce. Los 'impuestos' se dividían entre el miembro pandillero que hacia la colección, Ponce y otros líderes de la pandilla.

Adicionalmente, Ponce manejaba una operación de heroína y trafico de metanfetamina, distribuyendo y vendiendo narcóticos a través de la región. Ponce ordenó a miembros de la pandilla que mantenían órdenes de detención sobresalientes a entregarse a los oficiales con el fin de que el contrabando ilegal que estaba oculto en estos individuos pudiera ser contrabado a la Cárcel del Condado de Imperial. Los miembros de la pandilla atacaban a cualquier persona que fallara en llevar a cabo las órdenes.

Sobre el curso de la investigación, los agentes capturaron a Ponce en interceptación de la línea telefónica ordenando asaltos, fijando las tasas de extorsión y arreglando las ventas de droga.

Tras la investigación, la oficina de Brown ayudó al Fiscal del distrito del Condado de Imperial, Gilberto G. Otero, en la preparación del caso contra la pandilla. En agosto del 2007, el caso fue presentado ante el gran jurado penal del Condado de San Diego, que regresó 46-cargos de acusación contra los 31 miembros de la célula. Sobre los últimos dos años y medio, la oficina de Brown ha enjuiciado exitosamente a 31 miembros de la pandilla, incluyendo:

- Patrick Ralph Ponce ('Pato'), 44, del Condado de Imperial, quien se declaró culpable de secuestro; dos cargos de extorsión; vendiendo metanfetamina y suministrar una arma de fuego a un delincuente y se espera que sea sentenciado a 22 años en la prisión estatal;
- Marc Anthony Villaseñor ('Joker'), 31, del Condado de Imperial, quien se declaró culpable de asalto causando gran daños al cuerpo; vendiendo heroína; y asalto con arma mortal y fue sentenciado a 20 años y 8 meses en la prisión estatal.
- Raúl Antonio Cruz, Jr. ('Jr.'), 33, del Condado de Imperial, quien se declaró culpable de asalto con arma de fuego; tres cargos de extorsión; y tres cargos de suministrar armas de fuego a un delincuente y fue sentenciado a 16 años en la prisión estatal;
- Ezequiel Ernesto Rodríguez ('Neto'), 39, del Condado de Imperial, quien se declaró culpable a extorsión y admitió cargar una arma de fuego durante un crimen de la pandilla y fue sentenciado a 15 años en la prisión estatal;
- Victorianao Ortiz ('Cyco'), 30, del Condado de Imperial, quien se declaró culpable de asalto con una arma mortal y fue sentenciado a 14 años en la prisión estatal;
- Raúl Vega Mejía ('Pollo'), 37, del Condado de Imperial, quien se declaró culpable a dos cargos de intentar a cometer extorsión; dos cargos de extorsión; ocultar y llevar una arma de fuego en un vehículo; y por ser un delincuente en posesión de una arma de fuego y fue sentenciado a 13 años en la prisión estatal;
- Gabriel Anthony Valles ('Güero'), 47, del Condado de Imperial, quien se declaró culpable de asalto con una arma mortal y admitió llevar una arma de fuego durante un crimen pandillero y fue sentenciado a 9 años en la prisión estatal;
- Marco Araujo, 54, del Condado de Imperial, quien se declaró culpable de conspiración a vender heroína y tres cargos de vender heroína y fue sentenciado a 9 años en la prisión estatal;
- Juan Antonio Hornback ('Duke'), 31, del Condado de Imperial, quien se declaró culpable de vender heroína y fue sentenciado a 9 años en la prisión estatal;
- José Manuel Zepeda, 31, del Condado de Imperial, quien se declaró culpable de conspirar y cometer extorsión y extorsión y fue sentenciado a 9 años en la prisión estatal;
- Víctor Ruby ('Outlaw'), 38, del Condado de Imperial, quien se declaró culpable de asalto para causar gran daños al cuerpo y fue sentenciado a 8 años en la prisión estatal;
- David Páez Martínez ('Deebo'), 32, del Condado de Imperial, quien se declaró culpable de extorsión; dos cargos de intentar a cometer extorsión; asalto con una arma de fuego; y por ser un delincuente en posesión de una arma de fuego y fue sentenciado a 7 años en la prisión estatal;
- Luis Héctor Muñoz ('Clepto'), 30, del Condado de Imperial, quien se declaró culpable de conspirar a cometer extorsión y extorsión y fue sentenciado a 7 años en la prisión estatal;
- Gerardo Robles ('Gerry'), 29, del Condado de Imperial, quien se declaró culpable a conspirar a vender heroína y vender heroína y fue sentenciado a 7 años en la prisión estatal;
- José Espinoza ('Chuck'), 26, del Condado de Imperial, quien se declaró culpable a extorsión; recibir propiedad robada y en posesión de un arma de fuego y fue sentenciado 6 años y 4 meses en la prisión estatal;
- Jaime Alejandro Pérez ('Beef'), 26, del Condado de Imperial, quien se declaró culpable de intentar a extorsionar y se espera que sea sentenciado a 6 años en la prisión estatal;
- Jorge Cuevas Mendoza ('Twinx'), 25, del Condado de Imperial, quien se declaró culpable de conspirar a vender heroína y fue sentenciado a 5 años en la prisión estatal;
- Antonio Padilla ('Kasper'), 34, del Condado de Imperial, quien se declaró culpable de conspirar a vender heroína y fue sentenciado a 4 años en la prisión estatal;
- Refugio Castellanos Servin, 43, del Condado de Imperial, quien se declaró culpable de vender heroína y fue sentenciado a 4 años en la prisión estatal;
- Manuel Estrada Solarez ('Chile'), 54, del Condado de Imperial, quien se declaró culpable de vender heroína y fue sentenciado a 4 años en la prisión estatal;
- Juan Cordero ('Pollo'), 31, del Condado de Imperial, quien se declaró culpable de conspirar a vender heroína y fue sentenciado a 3 años en la prisión estatal;
- Max Ponce, Jr. ('Mad Max'), 53, del Condado de Imperial, quien se declaró culpable de conspirar a vender heroína y fue sentenciado a 3 años en la prisión estatal;
- Anthony Edward Favela ('Shadow'), 37, del Condado de San Diego, quien se declaró culpable de conspirar a vender heroína y fue sentenciado a 3 años en la prisión estatal;
- Judy Ann Huerta, 29, del Condado de Imperial, quien se declaró culpable de conspirar a vender heroína y fue sentenciada a 3 años en la prisión estatal;
- Brian Mark Smith ('Dusty'), 34, del Condado de San Diego, quien se declaró culpable de suministrar una arma de fuego a un delincuente y fue sentenciado a 2 años en la prisión estatal;
- Joe Alberto Tamayo ('Drak'), 36, del Condado de Imperial, quien se declaró culpable de extorsión y fue sentenciado a 2 años en la prisión estatal;
- Rudy Raymond Ferrel, Jr., 36, del Condado de Imperial, quien se declaró culpable de perjurio y fue sentenciado a 2 años en la prisión estatal;
- Armando Salvador León ('Fooskie'), 49, del Condado de Imperial, quien se declaró culpable de conspirar a cometer extorsión y fue sentenciado a libertad condicional, 435 días de cárcel;
- Edén Macías Portugal, 34, del Condado de Imperial, quien se declaró culpable de posesión de heroína y fue sentenciado a libertad condicional, 335 días de cárcel;
- Maricela Smith, 48, del Condado de San Diego, quien se declaró culpable de posesión de metanfetamina y fue sentenciada a libertad condicional, 234 días de cárcel;
- Ruby Flores Méndez, 35, del Condado de San Diego, quien se declaró culpable de conspirar a vender metanfetamina y se espera que sea sentenciada a libertad condicional.

Sobre el curso de la investigación, los agentes también confiscaron un gran numero de armas de fuego, heroína y metanfetamina.

"Quiero dar las gracias especialmente a los miembros de la oficina del Procurador General Brown de San Diego por todo el trabajo dedicado y esfuerzo realizado para traer este caso a una conclusión exitosa,' dijo el Fiscal del Distrito del Condado de Imperial, Gilberto G. Otero. 'Este es solo otro ejemplo de lo que se puede lograr cuando las autoridades federales, estatales y agentes de policía locales trabajan juntos para el bien común de los ciudadanos de California'.
“Con estas declaraciones de culpabilidad, todas las agencias implicadas en esta investigación han tratado un golpe significativo al liderazgo de esta organización criminal,' dijo el DEA Agente Especial a cargo de la Oficina del Condado de Imperial Timothy A. Jennings. 'Esto debe enviar un mensaje claro a los traficantes de drogas que el DEA y nuestros socios de ejecución no toleráremos trafico de drogas y las actividades criminales en nuestra comunidad. Pienso que estos arrestos hacen la comunidad un poco más seguro para los ciudadanos del Condado de Imperial.”

Otras agencias policiales que ayudaron con la investigación incluyen a el Departamento de Policía de El Centro, la Oficina del Alguacil del Condado de Imperial, el Departamento de Policía de Calexico, el Departamento de Policía de Brawley, el Departamento de Policía de Holtville, el Servicio de Inmigración y Control de Aduanas de Estados Unidos, la Oficina de Aduanas y Protección Fronteriza, la Agrupación de Fuerzas Narcóticos del Condado Imperial, y el Departamento Federal de Investigaciones.

Una copia de los 46-cargos de acusación contra los 31 miembros de la pandilla esta adjuntada. (Disponible solo en ingles.)

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Brown Announces Convictions of 31 Mexican Mafia Gang Members in Extortion and Drug Trafficking Cell

March 25, 2010
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

El Centro, Calif.—In a “fatal blow” to one of the most extensive, organized and violent extortion and drug trafficking operations in Imperial County history, Attorney General Edmund G. Brown Jr. today announced the successful prosecution of all 31 members of a Mexican Mafia cell.

Early this week, the leader of the cell, Patrick Ralph Ponce, 44, of Imperial County, pleaded guilty to drug, weapon, kidnapping and extortion charges, making him the last of 31 gang members to plead guilty to charges brought by Brown’s office. The final conviction concludes “Operation Gangland,” which began in 2005 and ultimately shut down a major Mexican Mafia cell spread across Imperial and San Diego Counties.

“This Mexican Mafia cell was one of the most violent extortion and drug trafficking rings California’s border region has ever seen,” Brown said. “With the convictions of all 31 gang members, we’ve dealt a fatal blow to their criminal enterprise and they will spend a long, long time in prison.”

Originally indicted in August 2007, the gang members have collectively been sentenced to more than 200 years in prison.

In 2005, officials from the California Attorney General’s Office, California Department of Corrections and Rehabilitation, U.S. Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms and Explosives and the Imperial County District Attorney’s Office formed the Organized Crime Drug Enforcement Task Force to investigate the Mexican Mafia’s criminal activities.

The investigation uncovered a widespread drug smuggling and extortion operation directed by Mexican Mafia cell leader Patrick Ponce. The cell used “tax collectors” in El Centro, Calexico, Brawley, Heber, Holtville, Calipatria, and Niland to extort funds from anyone engaged in illegal activity, such as drug sales or immigrant smuggling. Those who refused or failed to pay were attacked by Ponce’s enforcers. The “taxes” would be split between the gang member who collected them, Ponce and other gang leaders.

Additionally, Ponce ran a heroin and methamphetamine trafficking operation, distributing and selling narcotics throughout the region. Ponce ordered gang members with outstanding warrants to surrender themselves to officers so that illegal contraband hidden on these individuals could be smuggled into the Imperial County Jail. Gang members attacked anyone who failed to carry out orders.

Over the course of the investigation, agents captured Ponce on wiretaps ordering assaults, setting extortion rates and arranging drug sales.

Following the investigation, Brown’s office assisted Imperial County District Attorney Gilbert G. Otero in preparing the case against the gang. In August 2007, the case was presented to the San Diego County criminal grand jury, which returned a 46-count indictment against 31 members of the cell. Over the past two and a half years, Brown’s office has successfully prosecuted all 31 gang members, including:

• Patrick Ralph Ponce (“Pato”), 44, of Imperial County, who pleaded guilty to kidnapping; two counts of extortion; selling methamphetamine; and supplying a firearm to a felon and is expected to be sentenced to 22 years in state prison;
• Marc Anthony Villasenor (“Joker”), 31, of Imperial County, who pleaded guilty to assault likely to cause great bodily injury; selling heroin; and assault with a deadly weapon and was sentenced to 20 years, 8 months in state prison;
• Raul Antonio Cruz, Jr. (“Jr.”), 33, of Imperial County, who pleaded guilty to assault with a firearm; three counts of extortion; and three counts of supplying a firearm to a felon and was sentenced to 16 years in state prison;
• Ezequiel Ernesto Rodriguez (“Neto”), 39, of Imperial County, who pleaded guilty to extortion and admitted carrying a firearm during a gang crime and was sentenced to 15 years in state prison;
• Victorianao Ortiz (“Cyco”), 30, of Imperial County, who pleaded guilty to assault with a deadly weapon and was sentenced to 14 years in state prison;
• Raul Vega Mejia (“Pollo”), 37, of Imperial County, who pleaded guilty to two counts of attempted extortion; two counts of extortion; carrying a concealed firearm in a vehicle; and being a felon in possession of a firearm and was sentenced to 13 years in state prison;
• Gabriel Anthony Valles (“Guero”), 47, of Imperial County, who pleaded guilty to assault with a deadly weapon and admitted carrying a firearm during a gang crime and was sentenced to 9 years in state prison;
• Marco Araujo, 54, of Imperial County, who pleaded guilty to conspiracy to sell heroin and three counts of selling heroin and was sentenced to 9 years in state prison;
• Juan Antonio Hornback (“Duke”), 31, of Imperial County, who pleaded guilty to selling heroin and was sentenced to 9 years in state prison;
• Jose Manuel Zepeda, 31, of Imperial County, who pleaded guilty to conspiracy to commit extortion and extortion and was sentenced to 9 years in state prison;
• Victor Ruby (“Outlaw”), 38, of Imperial County, who pleaded guilty to assault likely to cause great bodily injury and was sentenced to 8 years in state prison;
• David Paez Martinez (“Deebo”), 32, of Imperial County, who pleaded guilty to extortion; two counts of attempted extortion; assault with a firearm; and felon in possession of a firearm and was sentenced to 7 years in state prison;
• Luis Hector Munoz (“Clepto”), 30, of Imperial County, who pleaded guilty to conspiracy to commit extortion and extortion and was sentenced to 7 years in state prison;
• Gerardo Robles (“Gerry”), 29, of Imperial County, who pleaded guilty to conspiracy to sell heroin and selling heroin and was sentenced to 7 years in state prison;
• Jose Espinoza (“Chuck”), 26, of Imperial County, who pleaded guilty to extortion; receiving stolen property and possession of an assault weapon and was sentenced to 6 years, 4 months in state prison;
• Jaime Alejandro Perez (“Beef”), 26, of Imperial County, who pleaded guilty to attempted extortion and is expected to be sentenced to 6 years in state prison;
• Jorge Cuevas Mendoza (“Twinx”), 25, of Imperial County, who pleaded guilty to conspiracy to sell heroin and was sentenced to 5 years in state prison;
• Antonio Padilla (“Kasper”), 34, of Imperial County, who pleaded guilty to conspiracy to sell heroin and was sentenced to 4 years in state prison;
• Refugio Castellanos Servin, 43, of Imperial County, who pleaded guilty to selling heroin and was sentenced to 4 years in state prison;
• Manuel Estrada Solarez (“Chile”), 54, of Imperial County, who pleaded guilty to selling heroin and was sentenced to 4 years in state prison;
• Juan Cordero (“Pollo”), 31, of Imperial County, who pleaded guilty to conspiracy to sell heroin and was sentenced to 3 years in state prison;
• Max Ponce, Jr. (“Mad Max”), 53, of Imperial County, who pleaded guilty to conspiracy to sell heroin and was sentenced to 3 years in state prison;
• Anthony Edward Favela (“Shadow”), 37, of San Diego County, who pleaded guilty to conspiracy to sell heroin and was sentenced to 3 years in state prison;
• Judy Ann Huerta, 29, of Imperial County, who pleaded guilty to conspiracy to sell heroin and was sentenced to 3 years in state prison;
• Brian Mark Smith (“Dusty”), 34, of San Diego County, who pleaded guilty to supplying a firearm to a felon and was sentenced to 2 years in state prison;
• Joe Alberto Tamayo (“Drak”), 36, of Imperial County, who pleaded guilty to extortion and was sentenced to 2 years in state prison;
• Rudy Raymond Ferrel, Jr., 36, of Imperial County, who pleaded guilty to perjury and was sentenced to 2 years in state prison;
• Armando Salvador Leon (“Fooskie”), 49, of Imperial County, who pleaded guilty to conspiracy to commit extortion and was sentenced to formal probation, 435 days jail;
• Eden Macias Portugal, 34, of Imperial County, who pleaded guilty to possession of heroin and was sentenced to summary probation, 355 days jail;
• Maricela Smith, 48, of San Diego County, who pleaded guilty to possession of methamphetamine and was sentenced to formal probation, 234 days jail; and
• Ruby Flores Mendez, 35, of San Diego County, who pleaded guilty to conspiracy to sell methamphetamine and is expected to be sentenced to formal probation.

Over the course of the investigation, agents also seized a large number of firearms, heroin and methamphetamine.

“I want to give special thanks to the members of Attorney General Brown’s San Diego office for all the hard work and effort expended to bring this case to a successful conclusion,” said Imperial County District Attorney Gilbert G. Otero. “This is just another example of what can be accomplished when federal, state and local law enforcement officers work together for the common good of the citizens of California.”

"With these guilty pleas, all agencies involved in this investigation have dealt a significant blow to the leadership of this criminal organization,' said DEA Assistant Special Agent in Charge at the Imperial County Office Timothy A. Jennings. 'This should send a clear message to the drug traffickers that the DEA and our outstanding law enforcement partners will not tolerate drug trafficking and the related criminal activities in our community. I think that these arrests make the community a little bit safer for the citizens of Imperial County'.

Other law enforcement agencies that assisted with the investigation included the El Centro Police Department, Imperial County Sheriff's Office, Calexico Police Department, Brawley Police Department, Holtville Police Department, U.S. Immigration and Customs Enforcement, U.S. Border Patrol, Imperial County Narcotic Task Force, and the Federal Bureau of Investigation.

A copy of the original 46-count indictment against the 31 gang members is attached.

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Brown Asks Court to Prevent Michael Jackson's Former Doctor Conrad Murray from Practicing Medicine

March 23, 2010
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

Los Angeles—Attorney General Edmund G. Brown Jr. today announced that his office has filed documents with the Los Angeles Superior Court on behalf of the California Medical Board to ask the court to restrict the medical license of Michael Jackson’s former doctor, Conrad Murray, preventing him from practicing medicine in California until the criminal proceedings against him are completed.

“Murray administered a lethal dose of propofol, as well as other drugs to Michael Jackson,” alleged Brown in his filing. “We will argue in court that Murray was reckless in giving Jackson such a dangerous drug and has demonstrated a serious lack of judgment that should prohibit him from practicing medicine.”

The Los Angeles County District Attorney’s Office filed a criminal complaint last month alleging that Dr. Murray committed involuntary manslaughter last year when he gave Michael Jackson the lethal dose of propofol. Jackson was under Dr. Murray’s care at the time of his death.

Brown’s office is representing the California Medical Board, the agency charged with protecting the public from dangerous, incompetent or impaired physicians and surgeons.

Copies of the court filings are attached.

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Brown Arrests Six People for Medi-Cal Fraud

March 23, 2010
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

Los Angeles—Attorney General Edmund G. Brown Jr. today announced the arrests of six former employees of New Beginnings Recovery Treatment Center Inc., a Los Angeles-based drug and alcohol rehabilitation center, who “stole tens of thousands of dollars” from Medi-Cal by billing the state for drug treatment sessions that were never performed.

The six individuals were arrested today on charges of felony grand theft and filing false Medi-Cal claims. The maximum sentence for conviction on both felonies is three years in state prison. Bail has been set at $68,000 for Tatyana Yakovenko and at $40,000 for the other five defendants.

“These individuals stole tens of thousands of dollars from the state’s alcohol and drug treatment programs,” Brown said. “In this time of economic crisis, it’s brazen and offensive that these individuals chose to rip off public health programs instead of helping substance abusers get their lives together.”

Between July 1, 2005 and May 30, 2009, New Beginnings owner Tatyana Yakovenko and her associates submitted 1,642 fraudulent claims totaling more than $68,000 to the California Department of Alcohol and Drug Programs (ADP.)

Under a contract established with the Los Angeles County Alcohol and Drug Programs Administration, New Beginnings provided alcohol and drug treatment services to Medi-Cal patients. Certified as a Substance Abuse Clinic in January 2002, New Beginnings operated four treatment centers in Los Angeles County.

In late 2008, Brown’s office launched an investigation into allegations that New Beginnings was submitting false Medi-Cal claims to ADP.

Brown’s investigation found that New Beginnings owner Tatyana Yakovenko and five members of the center’s upper management required therapists and group counselors to “ghost write” counseling sessions that were never performed and forge group therapy sign-in sheets. The investigation uncovered that as many as half of the Medi-Cal claims filed by New Beginnings were fraudulent.

The investigation also revealed that several patients who were enrolled in the program did not have a drug problem, and many of their drug tests were fabricated to ensure continued and unnecessary treatment. New Beginnings employees enticed adult Medi-Cal beneficiaries to enroll in the organization’s drug counseling program by offering cigarettes, food, and assistance with Section 8 housing qualification.

The majority of treatment and group notes were stored on computers, which made it easy to cut and paste and change the names of the clients. Counselors were instructed to occasionally create a “crisis,” which meant a dirty drug test or a situation that warranted a client’s continued drug treatment.

Additionally, investigators determined that some counselors were ordered to enter treatment records for 120 clients when only 40 clients were actually receiving treatment. The average client had four treatment group activities per month, but counselors were pushed to increase the documentation to 20 activities per month.

The six individuals arrested today on charges of felony grand theft and filing false Medi-Cal claims include:
• Tatyana Yakovenko, 35, of Beverly Hills,
• Natalya Zvereva, 34, of Sherman Oaks,
• Carlos Villanueva, 38, of Pico Rivera,
• Aleksey Lisitsa, 27, of Los Angeles,
• Jodee A. Wallace, 41, of Granada Hills; and,
• Romalis Conway, 29, of Los Angeles

Earlier this month, Brown announced his office recovered more than $209 million and secured 139 criminal convictions by aggressively investigating and prosecuting Medi-Cal fraud cases in 2009. Brown also reported that in 2009, his Bureau of Medi-Cal Fraud and Elder Abuse returned more than $12 million to victims of elder abuse and secured 47 criminal convictions in elder abuse cases.

Copies of the felony complaint and arrest warrant affidavits are attached.

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Brown Arrests Former Nursing Home Official Who Kidnapped Alzheimer's Patient and Stole Social Security Checks

March 22, 2010
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

Oakland, Calif.—Attorney General Edmund G. Brown Jr. today announced that California Department of Justice agents arrested a former nursing home administrator, Concepcion “Connie” Pinco Giron, 51, of San Pablo, who “callously stole” more than $50,000 from six of her elderly patients, one of whom she kidnapped and held for nearly a year in order to take her pension and social security checks.

Giron faces one count each of kidnapping to commit another crime, false imprisonment and elder abuse, and six counts of theft from elder or dependent adults by a caretaker. If convicted, Giron faces up to 12 years in prison. Giron is being held at Alameda County Jail, and bail has been set at $365,000.

“Giron callously stole thousands of dollars from elderly and sick people, even going so far as to kidnap an elderly woman with Alzheimer’s and steal the woman’s social security checks,” Brown said. “This is a shocking case of nursing home abuse and a gross violation of trust.”

In August 2009, agents from Brown’s Bureau of Medi-Cal Fraud and Elder Abuse (BMFEA) received a complaint against Giron, who at the time was the assistant administrator of Elmwood Nursing and Rehabilitation Center in Berkeley.

Brown’s office began an investigation and discovered that Giron had kidnapped an 85 year-old woman with Alzheimer’s and moved her from the nursing home to Giron’s own home. To kidnap the woman, Giron falsified the discharge paperwork and told her employer that the patient was transferring to a licensed facility. Giron held the victim in her home for almost a year and cashed her monthly pension and social security checks to pay Giron’s own bills and rent. The victim, who was not harmed, was later taken to a licensed facility.

As the investigation continued, agents from Brown’s office also found that Giron had opened bank accounts for several of her patients and had transferred funds from those accounts into her own bank account. Giron wrote checks to herself from the patients’ accounts, used their ATM cards and stole cash from patients’ trust accounts that were maintained by the nursing home.

In addition, Giron convinced the son of a full-time patient that he needed to pay an extra $600 a month in cash to keep his mother in the facility. Giron pocketed these payments, which the son made for 18 months.

In total, Giron stole more than $50,000 from six of her elderly patients and their families.

Brown's Bureau of Medi-Cal Fraud and Elder Abuse protects patients in nursing homes and other long-term care facilities from abuse and neglect. The Bureau also investigates and prosecutes those who cheat taxpayers out of millions of dollars each year and divert scarce healthcare resources from the needy.

Last year, Brown’s Bureau of Medi-Cal Fraud and Elder Abuse returned more than $12 million to victims of elder abuse and secured 47 criminal convictions in elder abuse cases. Although elder abuse can take many forms, the majority of cases involve abuses at California's skilled nursing facilities. Brown's office uses its civil, administrative and criminal enforcement powers to bring poorly performing care facilities into compliance with federal and state laws.

To report cases of elder abuse, please contact the Bureau of Medi-Cal Fraud and Elder Abuse hotline toll-free at 1-800-722-0432 or visit: http://ag.ca.gov/bmfea/reporting.php.

Copies of the arrest warrant and complaint, filed in Alameda County Superior Court, are attached. The Alameda County District Attorney’s Office will prosecute the case against Giron.

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Brown Shuts Down Fraudulent Foreclosure Relief Companies and Recovers Cash for Scammed Homeowners

March 22, 2010
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

Santa Ana, Calif.—Attorney General Edmund G. Brown Jr. today shut down two fraudulent foreclosure-assistance companies and secured a court judgment that prohibits three individuals from working in the real estate industry and provides more than $1 million in restitution for victims left with “false hope” after paying upfront fees for nonexistent loan-modification services.

“George Escalante, Cesar Lopez and Adrian Pomery used their loan-modification companies to sell false hope to hundreds of Californians facing foreclosure,” Brown said. “This judgment shuts their companies down, locks them out of the real estate industry and pays back more than $1 million to the victims.”

On July 7, 2009, Brown filed suit against two affiliated companies based in Orange County, U.S. Foreclosure Relief Corp. and H.E. Servicing, Inc., as well as their executives, George Escalante and Cesar Lopez, and legal representative Adrian Pomery. The suit was filed jointly with the Federal Trade Commission (FTC) and the State of Missouri as part of “Operation Loan Lies,” a massive federal-state crackdown on loan-modification fraud.

The joint investigation, initiated in March 2009, found that the defendants used aggressive telemarketing tactics to convince distressed homeowners to pay $1,800 to $2,800 in upfront fees for loan-modification services that included reductions in principal and lower interest rates. In sales calls, H.E. Servicing, for example, claimed it had successfully negotiated 10,000 loan modifications. However, a full review of internal records found the company opened only 2,960 loan-modification files and completed only 311. It is estimated that California homeowners accounted for 15 to 20 percent of the company’s opened loan-modification files.

Brown’s judgment permanently shuts down U.S. Foreclosure Relief and H.E. Servicing and prohibits the defendants from ever working in the real estate and loan-modification industries again.

Additionally, the judgment will provide more than $1 million in relief to victims paid through frozen company funds and the sale of Escalante’s jewelry, 2007 Mercedes SUV, 2007 Mercedes sedan and 2009 Toyota Tundra. Separately, Lopez declared bankruptcy in June 2009 and relinquished possession of a 2007 Cadillac Escalade SUV and 2008 BMW S Series sedan as part of those proceedings.

Under the judgment, a court-appointed independent receiver will oversee the repayment program. Victims can access more information about this program by visiting the receiver’s website at www.heservicingreceiver.com, by calling: 1-866-243-8101 or by emailing: info@heservicingreceiver.com.

The FTC’s enforcement division will monitor the defendants’ compliance with the judgment, and if they are found to have misrepresented their financial condition and inability to pay, the judgment, in full, will become due immediately. The full judgment requires total payment of $8.6 million from Escalante, US Foreclosure Relief and H.E. Servicing as well as $3.3 million from Lopez and $3.4 million from Pomery.

While in operation, H.E. Servicing spent $70,000 a week on radio and television advertising in 100 media markets nationwide and had plans to spend an additional $10,000 to $30,000 a week with the goal of bringing in an estimated $270,000 a week in new business. A report prepared by an outside accountant found that in the first six months of 2009 alone, the company made $4.5 million in net income.

To learn more about how these companies operated, visit: http://ag.ca.gov/newsalerts/release.php?id=1774&.

The original lawsuit alleged that US Foreclosure Relief, H.E. Servicing and their executives violated:

• FTC Act, 15 U.S.C. § 45(a) for false or unsubstantiated loan modification and success claims;
• TSR, 16 C.F.R. § 310.2(a)(2)(iii) and (a)(4) for making false or misleading statements;
• TSR, 16 C.F.R. § 310.4(b)(l)(iii)(B) for violations of the National Do Not Call Registry;
• TSR, 16 C.F.R. § 310.8 for failure to pay national Registry fees;
• California Business and Professions Code § 17500 for making untrue or misleading statements;
• California Business and Professions Code § 17200 for unfair competition;
• Missouri Merchandising Practices Act § 407.020 for unlawful merchandizing practices; and
• Missouri Merchandising Practices Act § 407.938 and § 407.940 for unlawful foreclosure consulting.

Earlier this month, Brown filed an amended complaint naming Brandon L. Moreno and his law firm, Cresidis Legal, as additional defendants in the case. This comes after investigators found that Moreno served as the legal affiliate for H.E. Servicing after Pomery departed. These defendants are not part of the judgment announced today, and Brown will continue to prosecute the case against them.

By law, all individuals and businesses offering mortgage-foreclosure consulting, 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 and businesses 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.

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 deceptive loan-modification consultants.

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

A copy of the court-approved stipulated judgment, filed in U.S. District Court for the Central District of California, is attached.

Brown Calls on Public to Help Identify Suspects Who Attempted to Kill Police Officers

March 18, 2010
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

Riverside, Calif.—Following three “brazen attempts to kill” police officers in the past several weeks, Attorney General Edmund G. Brown Jr. today joined Riverside County District Attorney Rod Pacheco, Riverside County Sheriff Stanley Sniff, Hemet Police Chief Richard Dana and Riverside County Supervisor Jeff Stone to urge the public to come forward with any information on these incidents.

There is currently a $200,000 reward for information leading to the arrest and conviction of the person or persons responsible for these attacks.

“These brazen attempts to kill police officers in the line of duty are an outrage, and even a form of urban terrorism. Our brave men and women in uniform put their lives on the line every day to keep our streets safe,” Brown said. “We urge anyone with information on the attacks to come forward immediately.”

Today’s plea follows three separate potentially deadly attacks targeting members of the Hemet Gang Task Force, including:

• On Dec. 31, 2009, criminals targeted the unmarked Hemet Gang Task Force headquarters, redirecting the natural gas line on the roof into the building to fill the office with potentially deadly gas. With the flip of a light switch or an electrical spark, the building could have exploded, leveling an entire city block.

• On Feb. 23, 2010, criminals targeted officers at the same Hemet Gang Task Force headquarters, carefully hiding and attaching a homemade zip gun to a security gate outside of the building. As a task force member opened the gate, the weapon fired, missing the officer’s head by inches.

• On March 5, 2010, criminals targeted a task force member who had parked an unmarked police car in front of a convenience store in Hemet. When the officer returned to the car, he found what appeared to be a homemade pipe bomb hidden underneath the vehicle. Had the device detonated, it could have killed the officer and others nearby.

“These obvious attempts to murder law enforcement officers - who each day put their lives on the line to rid our communities of violent gang members - are indicators of the callousness of these domestic terrorists,” said District Attorney Rod Pacheco. “These criminals are willing to put the lives of the residents of this county in extreme jeopardy while targeting those who have chosen to protect those same residents.”

Anyone with information about these attacks is asked to call the Hemet Police Department Tip Line at: 951-765-3897.

The $200,000 reward for information leading to the arrest and conviction of the person or persons responsible for these attacks includes $100,000 from the Riverside County Board of Supervisors, $50,000 from the Governor’s Office, $20,000 from the Federal Bureau of Investigation, $10,000 from the Bureau of Alcohol, Tobacco, Firearms and Explosives, $10,000 from the City of Hemet and $10,000 from the Riverside County District Attorney’s Office.

Brown’s office is assisting local officials with the investigation into these attacks.

Brown Announces Investigation into Prescription-Drug Ring Linked to Former Child Star Corey Haim

March 12, 2010
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

Los Angeles—In an ongoing crackdown on prescription-drug fraud and abuse, Attorney General Edmund G. Brown Jr. today announced that his office is investigating an “illegal and massive prescription-drug ring” linked to the actor Corey Haim.

An unauthorized prescription under the former child star’s name was found during an ongoing investigation of fraudulent prescription-drug pads ordered from a vendor in San Diego.

“Corey Haim’s death is yet another tragedy linked to the growing problem of prescription-drug abuse,” Attorney General Brown said. “This problem is increasingly linked to criminal organizations, like the illegal and massive prescription-drug ring under investigation. It’s a serious public health problem.”

The prescription-drug ring under investigation operates by ordering prescription-drug pads from authorized vendors using stolen doctor identities. 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 doctor whose name is printed on the form is usually unaware that his or her identity has been stolen for this purpose.

The investigation has thus far uncovered more than 4,500 to 5,000 fraudulent prescriptions linked to the fraud ring in Southern California.

The San Diego Regional Pharmaceutical Narcotic Enforcement Team (RxNET) is conducting the investigation. RxNET is a cooperative effort of the California Department of Justice, Bureau of Narcotic Enforcement; Department of Health Care Services and Immigration and Customs Enforcement. RxNET also works in conjunction with other state, federal and local law enforcement agencies.

Prescription-drug abuse is a growing problem. Brown’s office has investigated and filed charges in more than 200 cases—against both physicians who have abused their trust and patients who go from doctor to doctor in search of drugs.

In February 2009, Brown filed charges against Dr. Lisa Barden of Rancho Cucamonga, who stole the identities of her patients to obtain highly addictive painkillers. The San Bernardino County District Attorney is prosecuting the case.

In April 2009, Brown’s office arrested five college-age individuals who conspired to fraudulently obtain thousands of prescription drugs. The San Diego County District Attorney is now prosecuting the case.

In addition to costing the state millions of dollars each year, prescription-drug abuse can have serious public safety consequences, as many of the top abusers hold down regular jobs including truck drivers, transit operators and medical practitioners.

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 in investigating these types of crimes.

For more information on the California Department of Justice Bureau of Narcotic Enforcement and California’s prescription-drug monitoring system visit: http://ag.ca.gov/bne/CURES.php.

For doctors and other authorized healthcare and prescription-drug providers, visit www.ag.ca.gov for more information on CURES.

Brown Joins SF Police Department Investigation into Evidence Tampering at City Crime Lab

March 11, 2010
Contact: (916) 210-6000, agpressoffice@doj.ca.gov

San Francisco—On the heels of troubling allegations of evidence tampering against a former San Francisco Police Department Crime Lab technician, Attorney General Edmund G. Brown Jr. today announced that his office will provide a team of specialists to assist in a thorough independent audit of the laboratory.

“My office will assist San Francisco police to get to the bottom of these serious evidence-tampering allegations,” Brown said. “It’s critical that we act immediately to get the San Francisco crime lab back in service and restore the public’s trust in our criminal justice system.”

At the request of San Francisco Police Chief George Gascon, crime lab specialists from Brown’s office will assist San Francisco authorities in re-testing of evidence, improving internal controls and taking whatever steps are necessary to return the lab to full operation.

Today’s announcement follows allegations that Deborah Madden, 60, a former San Francisco Police Department Lab technician, jeopardized numerous criminal cases by tampering with police evidence.

The San Francisco Police Department will continue to lead the criminal investigation into Ms. Madden's conduct.