Category Archives: Orange County

“Sorry, We Are No Longer In Business”

PennySaver abruptly closes its doors after 53 years

The iconic PennySaver

The iconic PennySaver

Staff Reports

Brea – On Friday evening, May 22, employees of the PennySaver in Brea, California, received quite a shock after a full week of business as usual and looking forward to a long Memorial weekend.  Reportedly hundreds of employees were laid off – without notice – after they had met the deadlines on their very last issue.  Some left under security; all read the crudely written signs placed on the gates and front doors that read, “CLOSED.  Sorry, we are no longer in business.”

PennySaver employee, Luann Benton, told CBS Los Angeles, “I’ve been with the company for over 30 years and everything is a complete shock.  We had no idea the company was going to shut down…”

A mailbox stable for more than 50 years, the iconic periodical leaflet was the go-to for whatever you happened to be in the market for.

The PennySaver was founded in Huntington Beach in 1962, and presented itself as “Champion of the little guy, trying to level the playing field for small businesses through print and online classifieds and coupons that are tailored to a specific targeted local community.”

PennySaver CEO, Ronald Myers, reportedly issued a statement stating empathy for his employees during this difficult time.

“PennySaver did everything possible to try to stay in business and was in the process of pursuing a number of alternatives when our lender unexpectedly ceased our funding late Friday evening. Without any funding the company was forced to immediately cease operations,” Myers said in a statement to CBS.

Although employees received no notice and little – if any – explanation, the PennySaver has not heard the last from them. Labor laws will be called into question as they wait for answers to questions posed at a post-layoff meeting held at the Brea headquarters on Tues., May 26.  Executives reportedly stated that employees would not be receiving final paychecks or benefits.  The office of California’s Labor Commissioner is said to be looking into the situation.

 

OC Attorney Charged With Witness Tampering

Irvine lawyer arrested after accepting money to smuggle a witness out of the U.S.

Photo Courtesy: U.S. Department of Justice Attorney Ken Zhiyi Liang

Photo Courtesy: U.S. Department of Justice
Attorney Ken Zhiyi Liang

Staff Reports

Santa Ana – An Irvine-based immigration attorney has been arrested and charged with attempted witness tampering after agreeing to help a Chinese national flee from the United States after the woman had been designated as a “material witness” in a criminal investigation into “birthing houses” operating in Southern California.

According to the United States Attorney’s Office, Ken Zhiyi Liang, 38, of Irvine, was arrested on the afternoon of Fri., May 15, after accepting $6,000 from the witness in exchange for assisting her abscond to China. In a criminal complaint filed on May 16, Liang was charged with attempted witness tampering.  Liang was scheduled to make his initial court appearance on Mon., May 18 in United States District Court.

The Chinese national had been designated as a material witness in the federal investigation, meaning she was subject to a court order preventing her from leaving the U.S. without authorization from the government or court. Liang had represented the witness in the matter until the court removed him as attorney of record, over his objections, on Apr. 17.

The federal investigation – which became known when authorities executed dozens of search warrants in early March – focuses on so-called birthing houses that “provided services to Chinese nationals, who travelled into the United States from China, for the purpose of giving birth to children so that the children could obtain United States citizenship,” according to the affidavit in support of the criminal complaint against Liang.

The affidavit, which was written by a special agent with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, recounts several video- and audio-recorded calls and meetings between Liang and the witness. During these conversations, Liang outlined a plan in which he would assist the witness by having her board a commercial airliner in the United States without travel documentation, so she could escape to China undetected by federal authorities. At one of the meetings, Liang told the witness that he could guarantee her safe return to China in exchange for a $6,000 fee for himself, and up to $3,000 to pay for help provided by three others.

During the meetings detailed in the affidavit, Liang refused to provide a written contract to the witness and requested that she pay him in cash, delete text messages and call logs, and begin using a prepaid cellular phone for all future communications.

Unbeknownst to Liang, the witness was cooperating with federal agents, who were monitoring the conversations between Liang and the witness. Liang was arrested by federal authorities as he was walking with the witness toward his car, supposedly to begin a trip to a coffee shop in Corona, where he was going to introduce the witness to the co-conspirators, who are not identified in the affidavit. After his arrest, Liang led agents back to his office, where he returned the $6,000 he had accepted from the witness.

According to the affidavit in Liang’s case, the attorney provided assistance to two other material witnesses – LongJing Yi, and her husband, Jun Xiao – who fled to the U.S. on Apr. 4 and were subsequently charged in relation to their flight from the U.S.  Another material witness who allegedly received help from Liang was intercepted at Los Angeles International Airport on Apr. 15.

If convicted, Liang could face a statutory maximum penalty of 20 years in federal prison.

OC Firefighter Pleads Guilty

Child porn charges to produce explicit photos of young girls abroad

 

Staff Reports

Santa Ana – A Huntington Beach commercial firefighter pleaded guilty on Fri., May 8, to a federal charge of attempting to produce child pornography.

John McArthur, 57, a California-licensed fire captain – who at the time of the criminal conduct in 2012 worked for a ConocoPhillips oil refinery in San Pedro – pleaded guilty before United States District Judge Josephine Staton.

An investigation revealed that in Jan. 2012, McArthur had online conversations with a person he believed was a 13-year old girl in the Philippines. During those online conversations, McArthur agreed to send money for the purchase of a camera that would be used to take sexually explicit photographs of the girl and an 11-year old friend. McArthur later went to a Western Union agent to transfer the money to the minor.

Unbeknownst to McArthur at the time, the person posing as the 13-year old girl was Robert Oliver Clark, 75, a United States citizen residing in the Philippines. Clark was arrested in September 2014 in a related case, and he has agreed to plead guilty to possession of child pornography. In a plea agreement recently filed in United States District Court, Clark admitted that he “possessed, in his computer hard drive and in his email accounts, 5,443 images and 53 videos of child pornography, including 43 images and 1 video portraying sadistic or masochistic conduct and 16 images portraying toddlers.” Clark, who resided in Texas prior to moving to the Philippines, is scheduled to enter his guilty plea on May 21 in United States District Court in Los Angeles.

During this investigation, law enforcement authorities discovered that McArthur received hundreds of images and several videos of child pornography through his email accounts.

McArthur is scheduled to be sentenced by Judge Staton on Aug. 21, at which time he faces a statutory maximum sentence of 30 years in federal prison.

The investigation into McArthur and Clark was headed by the United States Postal Inspection Service, which received substantial assistance from the U.S. Department of State, Diplomatic Security Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Los Angeles Joint Regional Intelligence Center.

“Protecting children from crimes of sexual abuse and exploitation is a priority for the U.S. Postal Inspection Service,” stated Robert Wemyss, Inspector in Charge for the Los Angeles Division. “I’m proud of the work of the Postal Inspection Service and our investigative partners to bring child predators to justice. U.S. Postal Inspectors have investigated these crimes for more than a century. While the predators’ use of technology has evolved, the core harm has not changed: a child’s lost innocence. We will not lose sight of this, and remain steadfast in our efforts to investigate, apprehend, and assist in the prosecution of those who seek to exploit children via the U.S. Mail, wherever in the world they may be.”

 

Two Guilty In Nip And Tuck Bust

Staff Reports

Orange – A federal jury has convicted two local women in connection with a scheme to defraud union and private health insurance programs by submitting bills for more than $71 million – and receiving over $50 million in payments – for medically unnecessary procedures on patients who received free or discounted cosmetic surgeries.

According to the Assistant United States Attorney’s Office, on Thurs., Mar. 5, Theresa Fisher, 45, of Tustin, was found guilty on five counts of mail fraud; and Lindsay Hardgraves, 30, of San Pedro, was found guilty on two counts of mail fraud.

The evidence presented during a six-day trial showed that members of the scheme lured insured “patients” to a surgery center in Orange, with promises that they could use their union or PPO health insurance plans to pay for cosmetic surgeries, which are generally not covered by insurance. The surgery center was known at various times as Princess Cosmetic Surgery, Vista Surgical Center, and Empire Surgical Center.

Marketers such as Hardgraves referred “patients” to the surgery center, where they were told they could receive free or discounted cosmetic surgeries if they underwent multiple, medically unnecessary procedures that would be billed to their union or PPO health care benefit program. Fisher was a consultant at the surgery center who scheduled procedures after telling the “patients” about the free cosmetic procedures they could receive, and coaching them to fabricate or exaggerate symptoms so that their medical procedures would be covered by their insurance.

The unnecessary procedures typically performed on the “patients” were endoscopies, colonoscopies and cystoscopies. Once the health care benefit program paid the claims, the patients were given free or discounted cosmetic surgeries, including “tummy tucks,” breast augmentations and liposuction. In some cases, the surgery center simply billed cosmetic procedures (such as tummy tucks) as if they were medically necessary procedures (such as hernia surgeries).

A large number of the fraudulent claims were submitted to the International Longshore and Warehouse Union and Operating Engineers Union health insurance plans. Other victim insurers included Aetna and Anthem.

Fisher and Hardgraves are scheduled to be sentenced by United States District Judge, Josephine L. Staton, on May 29. At sentencing, each defendant faces a statutory maximum sentence of 20 years in federal prison for each count of mail fraud.

 

Drug-Infused Bread Closes OC Bakery

Staff Reports

An example of Rosca de Reyes (or Three Kings Bread) (Photo courtesy of Google Images)

An example of Rosca de Reyes (or Three Kings Bread) (Photo courtesy of Google Images)

Santa Ana – On Tues., Jan. 6, the Orange County Health Care Agency closed Cholula’s Bakery in the City of Santa Ana to begin a food-borne illness investigation after receiving several reports of illness related to eating Rosca de Reyes Bread distributed by the bakery on Jan. 5 and 6.

According to the Santa Ana Police Department, the O.C. Sheriff’s Crime Lab results from analysis of product samples of the bread returned positive for JWH122 – classified as a “synthetic cannabinoid,” which mimics some of the symptoms of cannabis consumption.

Wikipedia states synthetic cannabis/cannabinoids as synthetic marijuana, the effects of which are categorized in the genre of “designer drugs” and are sold as natural highs under brand names such as K2 or Spice (often termed a “spice product”).

Adverse health effects associated with ingesting synthetic cannabinoids include seizures, hallucinations, paranoid behavior, agitation, anxiety, nausea, vomiting, racing heartbeat and elevated blood pressure.

Cholula’s Bakery was initially closed until the investigation into the food-borne illness was completed, and it was confirmed that the bakery completed a professional restaurant-grade cleaning of the establishment, disposed of all opened foods and all ingredients used to make the Rosca de Reyes bread, and completed mandatory food safety training for all employees.

With the synthetic drug findings by the O.C. Sheriff’s Crime Lab, the future of Cholula’s Bakery may be in jeopardy.  The case has been returned to the Santa Ana Police Department for criminal investigation.

Anyone who believes they have consumed the tainted bread is encouraged to contact the Santa Ana Police Crimes Against Persons Unit at (714) 245-8390.

Lakewood Woman Embezzles Thousands In Credit Union Scheme

FBI News Release

Santa Ana – A Lakewood woman who pleaded guilty to a protracted embezzlement scheme, which resulted in the failure of a credit union, was sentenced today to 21 months in federal prison.

Wendy Wall, 50, was sentenced by United States District Judge James V. Selna, in Santa Ana, California. In addition to the prison term, Judge Selna ordered a four year term of supervised release, to include 12 months of home confinement, and ordered Wall to pay $480,273.77 in restitution.

Wall pleaded guilty to bank fraud on September 2, 2014, for engaging in the embezzlement scheme while employed at the Pepsi Cola Federal Credit Union.

Beginning in 1993 and continuing to February 2014, Wall was the manager and sole employee at the Pepsi Cola Federal Credit Union, a small financial institution in Orange County that served local Pepsi Bottling Company employees. While employed there, Wall operated an embezzlement scheme over a period of more than a decade by using her position to create fictitious bank accounts. Wall withdrew funds against those accounts by creating fictitious loans and by writing checks using the accounts. Wall then deposited the misappropriated funds into bank accounts belonging to Wall or her family members.

The scheme was discovered following an audit by the National Credit Union Association, whose personnel contacted the FBI to investigate further. Analysis indicates that the embezzlement scheme led to the eventual failure of the Pepsi Cola Federal Credit Union; however, members were indemnified against losses under an agreement with the National Credit Union Administration.

This investigation was conducted by the Federal Bureau of Investigation and prosecuted by the United States Attorney’s Office in Orange County.

Orange County: Missing Irvine Woman Found

Lisa Cimbaluk, 35, of Irvine, missing since Dec. 29, 2014, was recently found in deceased in the waters of Big Bear Lake. (Photo Courtesy: SBCounty.gov )

Lisa Cimbaluk, 35, of Irvine, missing since Dec. 29, 2014, was recently found deceased in the waters of Big Bear Lake. (Photo Courtesy: SBCounty.gov )

Staff Reports

Irvine/Big Bear – On Dec. 29, 2014, the parents of Lisa Cimbaluk, 35, reported their daughter missing from her home in Irvine. From that point, the story takes a downward turn, resulting in tragedy.
On Sun., Jan. 4, at approximately 2:15 a.m., San Bernardino County Sheriff’s Department (SBSD) Deputies from the Big Bear Station discovered Cimbaluk’s snow-covered vehicle at the Woodland Trailhead in the mountain town of Fawnskin.
According to SBSD, Deputies and volunteers began an exploration of the immediate area, but because of the snow and extreme overnight temperatures, they suspended their search until daylight.
On Mon., Jan. 5, the search for Cimbaluk continued, with 25 search and rescue members searching the area around the North Shore Parking Lot where her car was found, as well as the Woodland Trail. Patrol Citizens handed out flyers in surrounding communities, and SBSD began aerial searches of the area.
After suspending activity for the night, the search resumed again on Tues., Jan. 6, with more than double the number of search and rescue members actively looking for Cimbaluk, including assistance from Los Angeles, Orange, Riverside and Kern counties.
The search continued, and on Thurs., Jan. 8, at approximately 10 a.m., a body was located in the water near the South Shore area of Big Bear Lake from an aerial exploration. Personnel responded to the area and confirmed it to be a deceased female. The Coroner took charge and was able to positively identify the body as that of Lisa Ann Cimbaluk.
Whether Cimbaluk became lost or injured on the trail, or was the victim of foul play, is not known. SBSD will continue its investigation into her death, and hopefully be able to piece together the final days of Lisa Cimbaluk.
Anyone with information is urged to call the Sheriff’s Department at (909) 866-0100.

OC Christmas Burglar Shot

Staff Reports

Fullerton– A man has been charged for burglarizing a home on Christmas and fleeing the scene after being shot by the homeowner.

Jeremy William Bell, 29, of Fullerton, has been charged with one felony count each of First Degree Residential Burglary, Aggravated Assault, Attempted First Degree Residential Burglary, with a sentencing enhancement for the personal use of a deadly weapon, and a prior prison conviction in 2012 in Riverside County for a felon in possession of a firearm. If convicted, he faces a maximum sentence of nine years and four months in state prison.

At approximately 11:30 p.m. on Dec. 24, 2014, Bell is accused of attempting to break into an Anaheim home. He is accused of removing the sliding screen door of a room at the residence, but was unable to get inside. The family inside the home noticed an unknown man wearing a ski mask and contacted 911. The defendant is accused of fleeing the scene. Anaheim Police Department (APD) officers arrived at the residence, but were unable to locate the defendant.

At approximately 3:30 a.m. on Dec. 25, 2014, Bell is accused of breaking into an Anaheim home in a different neighborhood by gaining access inside the home’s closed garage. The homeowner heard noises coming from the garage and went to investigate. The defendant is accused of striking the homeowner in the face with a metal wrench as the victim opened the garage door. The homeowner ran back inside the home and retrieved a shotgun. The defendant is accused of fleeing the scene and stealing items from the residence after seeing the homeowner armed with a shotgun.

The homeowner fired one round of birdshot which struck the defendant in the back. APD arrived at the scene and arrested the suspect after finding him hiding outside a nearby garage at a different residence.

Bell is being held on $500,000 bail and was scheduled for pre-trial on Wed., Jan. 7, at the North Justice Center in Fullerton.

Gang Homicide In Santa Ana

Staff Reports

 

Santa Ana – On Christmas Eve, Dec. 24, at midnight, patrol officers were dispatched to a call of shots fired in the area of Sullivan Street. Witnesses informed officers they had heard approximately 4 to 5 shots fired. While at the call, officers learned that a 17-year old male – later identified as Angel Arellano – arrived with multiple gunshot wounds at Coastal Community Hospital. Arellano was immediately transported to Western Medical Center in critical condition, where he died from his injuries. Officers located the crime scene in the 500 block of S. Sullivan Street.

Victim Arellano – a documented Townsend Street gang member – was one of the individuals the Orange County District Attorney’s Office was seeking to enjoin the current Townsend Street Injunction.

According to an article written on the VoiceofOC.org (Aug. 20), the Injunction is essentially a restraining order that would restrict the activities of a gang’s members in a .39-square mile safety zone bordered by McFadden Avenue, and Raitt, Sullivan and First streets. Those enjoined would be prohibited from associating with gang members in public spaces within the safety zone, with the exception of certain spaces such as schools or churches. The order also prohibits gang members from acting as lookouts, trespassing, fighting, blocking free passage, or intimidating anyone in public. This shooting occurred within the gang injunction safety zone.

It is reported that residents in Santa Ana are frustrated with what they call police mistreatment and abuse of authority in the Townsend Street neighborhood. In fact, victim Arellano was contesting the injunction. A pretrial hearing is currently set for Jan. 13, 2015 on the case.

Anyone with information on the case is asked to call SAPD Homicide detectives at (714) 245-8390 or Orange County Crime Stoppers at 1-855-TIP-OCCS. The Santa Ana Police Department is offering a monetary reward for information leading to the arrest of gang homicide or felony gang assault suspects.

Orange County: OCDA Adopt-A-Family Celebration

Staff Reports

 

Santa Ana – Over 100 children from 40 families were able to participate in a special holiday celebration at the Orange County District Attorney’s Office’s (OCDA) 16th Annual Adopt-A-Family holiday event. The event was held on Sat., Dec. 13, from 9 a.m. to 12 p.m., at Russell Elementary School in Santa Ana.

OCDA staff, affiliates, friends, and family have adopted 123 children from 40 families who were identified as needing assistance during this holiday season by school administrators and staff. Each child received donated gifts and toys and their families were provided with grocery gift certificates for a holiday dinner.

All of the adopted families were invited to attend a holiday celebration that included arts and crafts activities, baked goods, a photo opportunity with Santa Claus, and distribution of the gifts to the children. Staff and volunteers were on-hand to answer questions, discuss the criminal justice system, and disseminate bilingual resource booklets.

This holiday event is part of the OCDA’s ongoing commitment to help improve the quality of life in the Orange County communities it serves.

Orange County: Man Arrested For Child Molestation

Staff Reports

Edwin Echeverria (Photo Courtesy: Santa Ana Police Dept)

Edwin Echeverria (Photo Courtesy: Santa Ana Police Dept)

Santa Ana – On Dec. 3 at approximately 12:35 a.m., Santa Ana Family Crimes Detectives arrested Edwin Echeverria, 22, or Santa Ana, for multiple counts of Child Molestation.  Echeverria was taking into custody on the 3500 block of South Harbor Blvd. in Costa Mesa as he was leaving his place of employment.

At this time, eight male victims have been identified.  Through interviews with these victims, Detectives have obtained knowledge about three additional children who may have been victimized.  Detectives are working to locate these children.

According to the Santa Ana Police Department, Detectives estimate that the suspect began victimizing the boys in the summer of 2012. Echeverria initially befriended the victims by selling them chips, soda and other items from his Warwick Square Apartment, located in the 700 block of South Lyon Street, in Santa Ana. Over time, Echeverria took advantage of the rapport and trust he had established to convince the children to engage in sexual acts with him.

The molestations occurred when the victims were as young as 10 years of age. The first incident is believed to have occurred in August 2012. The most recent known incident occurred approximately two weeks ago.

Police were alerted to the crimes after the parents of one of the victims discovered evidence their minor son might be involved in an inappropriate relationship with an unknown person. Interviews of the child and subsequent investigation led to the identification of the suspect and the additional victims.

The number of victims involved is this case is extraordinary. Detectives are not aware of any other Santa Ana cases involving a single suspect targeting such a large number of victims within memory.

Sexual abuse victims are commonly reluctant to disclose abuse for fear of retaliation from the suspect or because of personal embarrassment. Because Echeverria had access to children, there may be additional victims. The Santa Ana Police Department is asking parents of children who may have had contact with Echeverria to discuss those interactions. If there is any sign of inappropriate contact with Echeverria, call Santa Ana Police Department Family Crimes Detectives at (714) 245-8542 or Orange County Crime Stoppers at 1-855-TIP-OCCS.

 

Santa Ana: At-Risk Students Earn Over $25K In Turkey Dinners

Staff Reports

 

Santa Ana – Turkey dinners were awarded on Wed., Nov. 19, to 855 at-risk students who succeeded in the Orange County Gang Reduction Intervention Partnership’s (OC GRIP) 5th Annual Thanksgiving Challenge to improve student attendance, behavior, and grades.

The awards included a full Thanksgiving dinner, complete with side dishes, to feed a family of ten, and were delivered to participating OC GRIP schools for the successful students and their families to pick up. Deputy district attorneys, police officers, deputies, investigators, probation officers, and staff from all of the OC GRIP agencies were on hand to distribute the dinners.

Ralphs/Food 4 Less and Saddleback Church donated over 850 turkey dinners this year, compared to 400 in previous years, as part of the ongoing OC GRIP gang prevention effort to keep kids in school and out of gangs. The total donation is valued at over $25,000. OC GRIP extended the incentive to students at 50 schools across Orange County this year, compared to the previously participating 43 schools.

Orange County District Attorney (OCDA) Tony Rackauckas was at Viejo Elementary in Mission Viejo to personally greet the students and their families.

“I am truly grateful for the generosity of Ralphs/Food 4 Less and Saddleback Church for bringing Thanksgiving to so many deserving children and their families,” said Rackauckas. “I am absolutely thrilled for the opportunity these students have to do something good for their families and praise them for learning that there are rewards for good behavior.”

“Ralphs and Food 4 Less are proud to support a program that benefits families, the community at large, and keeps our children safe,” said Kendra Doyel, Community Affairs Senior Manager for Ralphs/Food 4 Less. “Our donation to this program is one of the many ways that Ralphs and Food 4 Less contributes to the communities where we work and live.”

At the beginning of the 2014-15 school year, over 1,000 students from 50 OC GRIP elementary and middle schools were invited to earn a Thanksgiving turkey dinner for their families by succeeding in a gang prevention challenge. The terms of the challenge were determined by each school and included no participation in gang activity or wearing gang clothing, no disciplinary action, perfect attendance, and improved grades. All of the 1,000 students were in grades four through eight and were individually identified by their respective schools as being the most at-risk of joining a criminal street gang. OC GRIP does not work with documented gang members, who were ineligible to participate.

The OC GRIP Thanksgiving Incentive was run by Orange County law enforcement agencies – including the OCDA, Orange County Probation Department, Orange County Sheriff’s Department in the cities of Dana Point, Laguna Hills, Lake Forest, Mission Viejo, San Clemente, San Juan Capistrano, Stanton, and unincorporated areas of North Orange County, Buena Park Police Department, Costa Mesa Police Department, Fullerton Police Department, Garden Grove Police Department, Orange Police Department, Santa Ana Police Department, and Tustin Police Department – and has over 500 community partners.

 

Santa Ana: Former OC Teacher Charged In Sex Tourism Case

STAFF REPORTS

Santa Ana – A former teacher with the Santa Ana School District has been charged with traveling to the Philippines to engage in sex with an underage girl and producing a video of the encounter.

According to the United States Attorney’s Office, Robert Ruben Ornelas, 63, of Santa Ana, was taken into federal custody on Fri., Oct. 24 after being named in a criminal complaint filed in United States District Court.

The three-count complaint accuses the onetime school teacher and girls softball coach of engaging in sexual conduct in a foreign place, producing child pornography, and possessing child pornography.

Ornelas also faces state charges of lewd acts with a child, but the defendant was turned over to federal custody after the new complaint was filed.

The federal complaint details allegations that Ornelas traveled in March 2012 to the Philippines, where he engaged in sexual conduct with a girl who was approximately 14. According to the affidavit in the case, Ornelas took video of his encounter with the girl and brought the images with him when he returned the U.S. the following month. The third count in the complaint accuses the defendant of knowingly possessing the child pornography.

While Ornelas is charged with conduct related to one victim, the affidavit discusses evidence linking him to the sexual molestation of additional victims.

The federal case is based on information and images found on Ornelas’ computer and digital media seized by investigators when they executed a search warrant at his residence. On the seized media, investigators discovered communications between Ornelas and several underage girls in the Philippines dating back to 2007. Investigators also found numerous sexually explicit photos and videos of underage girls.

The Orange County District Attorney’s Office previously charged Ornelas with two counts of lewd conduct with a child for allegedly molesting a relative. While those charges remain pending at this time, Ornelas was transferred to the custody of the U.S. Marshals Service on Oct. 24 to facilitate the federal prosecution.

At his initial court appearance that same day in federal court, Ornelas was ordered held without bond and was ordered to appear at an arraignment on November 10.

The three charges in the criminal complaint carry a cumulative maximum sentence of 80 years in federal prison. The charge of producing child pornography carries a mandatory minimum sentence of 15 years.

Orange County: Local CEO Indicted For Insider Trading With Former MLB Star

STAFF REPORTS

Santa Ana – On Sept. 24, a federal grand jury indicted the former Chief Executive Officer of an Orange County medical device and eye care company on insider trading charges.

James V. Mazzo, who was the CEO of the Santa Ana-based Advanced Medical Optics, Inc., which was traded on the New York Stock Exchange under the symbol EYE, was added to an indictment that had previously named former professional baseball player Douglas DeCinces and two of his associates.

According to the United States Attorney’s Office, the case, which was initially filed in 2012, alleges that Mazzo was the source of non-public information that DeCinces and his associates used to trade EYE stock in the midst of a takeover bid by Abbot Laboratories.

The 41-count superseding indictment filed on Sept. 24 in United States District Court charges Mazzo with providing DeCinces with confidential information in advance of Abbott’s 2009 acquisition of Advanced Medical Optics. DeCinces and his associates allegedly used the non-public information to purchase shares of EYE, which increased from approximately $8 to $22 as a result of the acquisition.

The indictment further alleges that Mazzo previously provided DeCinces with inside information in relation to Advanced Medical Optics’ 2007 acquisition of an Irvine medical device company, IntraLase Corp. (NASDAQ: ILSE). DeCinces allegedly used this inside information to purchase IntraLase stock, and to tip a friend to purchase shares, ahead of the announcement that Advanced Medical Optics was purchasing the company. IntraLase stock rose approximately ten percent after the announcement of the deal.

The superseding indictment names Douglas V. DeCinces, 64, of Laguna Beach, who currently is the president and CEO of a real estate development firm in Irvine; David Parker, 62, of Provo, Utah, who was a friend and business partner of DeCinces; and Fred Scott Jackson, 68, of Newport Beach, a real estate attorney who was friends with DeCinces.

The four defendants indicted in this case will be summoned to appear for arraignments in United States District Court in Santa Ana.

The indictment charges Mazzo with 13 counts of insider trading, 13 counts of tender offer fraud and one count of securities fraud.

DeCinces is charged with 19 counts of insider trading, 19 counts of tender offer fraud, one count of securities fraud and one count of money laundering.

Parker and Jackson are each charged with three counts of insider trading, three counts of tender offer fraud, and one count of securities fraud.  Parker additionally faces one count of money laundering and criminal forfeiture.

The securities fraud count carries a maximum statutory sentence of 25 years in federal prison. Each of the insider trading and tender offer fraud counts in the indictment carry a maximum statutory sentence of 20 years. The money laundering counts each carry a maximum penalty of 10 years.

DeCinces reportedly settled the case without admitting or denying the allegations, agreeing to pay $2.5 million in fines and not contest the IRS’ seizure of what were alleged to be insider trading profits. Jackson, without admitting or denying the allegations in the lawsuit also settled with the Securities and Exchange Commission, returning his profits and paying a penalty. A trial for Mazzo and Parker is scheduled for August 2015 in United States District Court in Santa Ana.

The investigation in this case was conducted by the Federal Bureau of Investigation and IRS Criminal Investigation. The Securities and Exchange Commission provided assistance during the investigation.

 

 

 

Orange County: Man Charged For Trafficking Woman To OC

STAFF REPORTS

Anaheim – A man was charged last week for human trafficking, pimping, and pandering after he trafficked a woman from Northern California to Orange County to have her engage in commercial sex.

Between Sept. 12 and Sept. 19, Eugene Lamar Corbett, 30, is accused of trafficking Jane Doe, 29, from Sacramento to Orange County. Corbett is accused of being an acquaintance of Jane Doe and living in Sacramento at the time of the crime.

Approximately one week after the trafficking, Corbett is accused of “pimping the victim by having her engage in commercial sex with sex purchasers and collecting her earnings,” according to the Orange County District Attorney’s office (OCDA). He is also accused of taking all of Jane Doe’s personal belongings to prevent her from leaving.

The Anaheim Police Department (APD) began an investigation on Sept. 19 after contacting Jane Doe. The Orange County Human Trafficking Task Force (OCHTTF) located and arrested Corbett later that evening.

Corbett faces a maximum sentence of 20 years in state prison if convicted. The People requested he be held on $250,000 bail and “must prove the money is from a legal and legitimate source before posting bond,” according to the OCDA.

Members of the OCHTTF and the OCDA work proactively to protect women and minors from falling victim to commercial sexual exploitation. This case was investigated by OCHTTF, a partnership between the APD, California Highway Patrol, Federal Bureau of Investigation, Huntington Beach Police Department, OCDA, Orange County Sheriff’s Department, and community and non-profit partners. Deputy District Attorney Brad Schoenleben of the HEAT Unit is prosecuting this case.

 

Orange County: Silverado Wildfire Contained

STAFF REPORTS

silverado-wildfire

A DC-10 drops retardant on the Silverado Fire in Orange County. (Photo Courtesy: WildfireToday.org)

Silverado – With extreme drought conditions and triple-digit temperatures egging on the wildfire in the Silverado Canyon area of the Cleveland National Forest, fire personnel fought to gain control of the blaze that blackened nearly 1,000 acres in Orange County last weekend.

The fire broke out on Fri., Sept. 12, allegedly due to a gardening accident. A local resident in the 30500 block of Silverado Canyon Road reportedly attempted to ban pests and small animals from his vegetables by making a barricade with sheet metal. The intense sun reflecting off the metal ignited the structure’s wood supports, and the fire quickly spread. The extreme conditions have made the hillsides like a tinderbox, and all the dry vegetation perpetuated the fire.

800-plus firefighters, and other personnel, have been working round the clock to take control of the fire. Initially, more than 215 homes near the critical area were evacuated for safety, but reports say residents were able to return to their homes on Sunday night when the U.S. Forest Service reported 50 percent containment.

Air support helped with control as helicopters and planes dropped suppressants on the flames, and the lines of containment helped firefighters block the fire and get a handle on the situation.

Several firefighters were injured over that weekend, mostly due to heat-related situations. At press time no structures were lost to this fire.

 

 

 

Santa Ana: O.C. Man Gets 4 Years In Federal Prison

STAFF REPORTS

Santa Ana – The owner of a Huntington Beach-based military contractor, who plead guilty to federal tax charges for failing to report millions of dollars to the Internal Revenue Service that his company received for providing services to the military at Baghdad International Airport, was sentenced on Fri., Sept. 5 to 48 months in federal prison.

According to the United States Attorney’s Office, Nadim “Nick” Saifan, Jr., 48, of Huntington Beach, was sentenced by United States District Judge Cormac J. Carney.

Saifan pleaded guilty in May to two counts of attempted tax evasion and specifically admitted that he substantially underreported income on his company’s 2005 corporate tax return and his personal tax return for 2006.

Saifan was the owner and operator of Defense Logistical Support & Services Corporation (DLSS), which provided services to the military and some civilian companies in Iraq. From August 2004 through October 2007, DLSS received nearly $16 million from the United States military for services in Iraq, according to court documents that state Saifan reported only a small fraction of this income on DLSS’s corporate tax returns filed with the IRS. The court documents also show that Saifan used foreign bank accounts, specifically in Lebanon, to conceal his assets and profits from DLSS Corp.

“In addition to failing to report the millions of dollars in taxable income on DLSS Corp.’s tax returns, [Saifan] also used substantial corporate funds for personal purchases and payments to himself, without claiming these distributions and payments as income to himself on his individual tax returns,” prosecutors wrote in a sentencing memo filed with the court. Saifan used corporate money to make approximately $880,000 in down payments on real estate and approximately $292,000 in payments toward vehicles that included a Ferrari and a Rolls-Royce.

Saifan has been in federal custody since Judge Carney revoked Saifan’s bond in May.

The case against Saifan was investigated by the Defense Criminal Investigative Service and IRS Criminal Investigation.

 

Orange County: Former Fannie Mae Official Sentenced to Federal Prison

STAFF REPORTS

Santa Ana – A former sales associate with the Federal National Mortgage Association (Fannie Mae) was sentenced on Mon., Aug. 4 to 15 months in federal prison for taking kickbacks from a real estate broker who sold properties on behalf of the mortgage agency.

According to the Assistant United States Attorney, Stephen Goorvitch, Armando Granillo, 45, of Huntington Beach, who worked in the Fannie Mae’s Irvine office, was sentenced by United States District Judge, David O. Carter.  In addition to his 15 month sentence in federal prison, Granillo was ordered to spend 6 months in a residential reentry center.

Following a two-day trial in March, Granillo was found guilty of three counts of “honest services” wire fraud for soliciting kickbacks while working for Fannie Mae.

As a “real estate owned foreclosure specialist” for Fannie Mae, Granillo reviewed applications submitted by real estate brokers who wanted to list Fannie Mae foreclosure properties, and he had the authority to approve sale offers presented by the brokers. In late 2012, Granillo asked a real estate broker in Tucson to pay a percentage of the commissions the broker earned for selling Fannie Mae foreclosure properties. The broker brought the matter to the attention of federal law enforcement officials and assisting in the investigation.

During subsequent conversations between Granillo and the broker, Granillo demanded 20 percent of the real estate broker’s commissions in exchange for preferential treatment in the assignment and sales of Fannie Mae properties. In February 2012, Granillo traveled from Orange County to the Phoenix area, where he met with the broker. During the recorded meeting, Granillo stated that the kickback arrangement was a “natural part of business.” Granillo promised to increase the broker’s portfolio and ensure that he always had at least 100 listings, to give the broker the best properties, and to help the broker get offers approved by Fannie Mae. Granillo then arranged to receive the $11,200 payment from the broker.

Granillo was arrested in this case on Mar. 5, 2013 during an undercover operation after accepting an $11,200 payment from the real estate broker.

Granillo “violated Fannie Mae and the public’s trust by engaging in a form of public corruption,” prosecutors wrote in a sentencing brief filed with the court. “This crime is akin to those involving governmental officials who solicit bribes in exchange for favorable treatment. The reputational damage is devastating and potentially permanent.”

Fannie Mae is currently under the conservatorship of the Federal Housing Finance Agency. The investigation into Granillo was conducted by the Federal Housing Finance Agency’s Office of Inspector General.

 

 

 

Orange County: Major Layoffs At Broadcom

STAFF REPORTS

 

Irvine – Orange County chip manufacturer, Broadcom, has plans to cut at least 240 jobs at its Irvine headquarters. A plan was recently announced to eliminate 20 percent of the technological company’s total staff, including 630 throughout California and more in North America, Asia, Europe and the Middle East.

Broadcom, whose wireless and broadband communication business was founded in 1991, has been a long-time supplier to Apple, and their chips have been a component of iPhones. Their total revenue in 2012 was over $8 billion, and in 2013 they were listed as number 327 on the Fortune 500. However, the company has been unable to compete with emerging firms in Asia, and techno-giant, Qualcomm, in San Diego.

The layoffs will save Broadcom an estimated $700 million annually, and they will continue to manufacture Internet-driven devices used in home appliances, thermostats, and mobile technologies. Nearly all of the layoffs will occur on Sept. 26, with the balance taking place in early November.

 

 

Orange County: Man Pleads Guilty To Swindling Doctors

STAFF REPORTS

Santa Ana – An Orange County man plead guilty to defrauding dozens of doctors and others of more than $2 million in separate schemes that promised large returns on investments in the medical and dental fields.

David Rose, 57, of Coto de Caza, appeared in U.S. District Court on Mon., July 21, to face charges of one count of wire fraud and one count of mail fraud, according to a news release from the United States Attorney’s Office.

According to court documents, during a period of over six years that ran through May 2011, Rose solicited physicians to invest in an Irvine company he called M.D. Venture Partners (MDVP) and falsely promised lucrative returns on investments in emerging medical technologies.

In a subsequent scheme, Rose used Technology Innovation Partners (TIP) to solicit dentists and orthodontists to invest, claiming funds would be pooled and invested in a company developing ablation technology that would be used to remove wisdom teeth in children without surgery.

Throughout both schemes, investor funds were misused, with Rose using victims’ money for personal expenses. According to a plea agreement filed in court, Rose used investor funds to pay $7,500-a-month rent for a house in Coto de Caza, college tuition, luxury vehicles, an $80,000 Sea Ray boat and shares in the Green Bay Packers. The investigation revealed that no money was invested by either MDVP or TIP.

In the MDVP scheme, Rose caused approximately 32 victims to lose more than $900,000, according to court documents. In the TIP scheme, 45 victims lost more than $1.4 million.

Rose was arrested in May 2013 and has remained in custody since that time. He is scheduled to be sentenced November 24, and faces a maximum statutory sentence of 40 years in federal prison.

The case against Rose is the product of an ongoing investigation by the Federal Bureau of Investigation.