The Sheriff's Blogger

Broker Gets 15 Years for $6.9 Million Theft in Ponzi Scheme and Real Estate Fraud

December 16, 2011

Case # 09CF1446

HARD MONEY LENDER BROKER SENTENCED TO 15 YEARS IN PRISON FOR STEALING OVER $6.9 MILLION FROM INVESTORS IN PONZI AND REAL ESTATE FRAUD SCHEME

SANTA ANA - A broker for "hard money lenders" was sentenced today to 15 years in state prison and three years of formal probation for stealing $6.9 million from investors in a Ponzi and real estate fraud scheme. 

Mark Alan Helsing, 53, Tustin, pleaded guilty Oct. 3, 2011, to 55 felony counts of grand theft, seven felony counts of filing false recorded documents, six felony counts of elder financial exploitation, and sentencing enhancements for white collar crime over $500,000 and excessive taking over $1 million and $1.3 million. Restitution will be determined at a later date.

Between May 2004 and June 2007, Helsing defrauded approximately 12 people in a Ponzi and real estate fraud scheme. Helsing operated as a broker for "hard money lenders" through his four Orange County based businesses including Sea View Investments, HLHS Financial Services, Inc., Foothill Realty, and Sea View Mortgage. The term "hard money lender" is a private investor who provides money to borrowers looking for funds from non-bank lenders.

He stole from his private investors, most of whom were long-time friends who trusted the defendant, by keeping the money they lent for borrowers and not funding the loans as promised. Helsing supplied investors with bogus interest payments by taking small sums from their initial investment and providing them with falsified and forged documents to prevent them from discovering that the loans had not been repaid. Helsing embezzled the money and failed to return it the investors' initial principal.

Helsing operated a Ponzi scheme and used funds from new investors to pay off old investors. A Ponzi scheme is a fraudulent scheme that offers investors high, short-term returns on investments by using the money from other investors. Instead of using the money to generate actual income and legitimate profits, the money from investors is kept for the benefit of the defendant or used to repay earlier investors.

In December 2008, the Tustin Police Department began investigating the case after receiving complaints of checks bouncing from some of Helsing's victims. Helsing was arrested in court June 12, 2009, after pleading guilty in an unrelated case (#08CF3304) to six felony counts including grand theft and check fraud.

 Deputy District Attorney George McFetridge of the White Collar Crime Team prosecuted this case.

 

Man Gets Life for Killing WWII Vet During Veterans Day Robbery

December 16, 2011

Case # 09CF1955

 MAN SENTENCED TO LIFE IN PRISON WITHOUT PAROLE FOR VETERANS DAY ROBBERY-MURDER OF WWII VETERAN *Defendant and co-defendant left victim in a coma for three years and were charged with murder after the victim's death

SANTA ANA - A man was sentenced today to life in state prison without the possibility of parole for the beating-murder of a WWII veteran during a robbery on Veterans Day. The victim was left in a coma for over three years until he died as a direct result of his injuries sustained in the 2003 attack. Curtis James Hill, 29, Huntington Beach, was found guilty by a jury Nov. 1, 2011, of one felony count of special circumstances murder in the commission of a robbery.

Co-defendant John Kirk McKinney, 29, Huntington Beach, is charged with one felony count of special circumstances murder in the commission of a robbery and faces a sentence of life in state prison without the possibility of parole if convicted. McKinney faces a jury trial Feb. 27, 2011, in Department C-41, Central Justice Center, Santa Ana.

The following was argued by the People during the trial against Hill. McKinney is accused of committing the following crimes:

At approximately 6:00 a.m. on Nov. 11, 2003, McKinney and Hill entered the parked van of 77-year-old Cecil Warren, a WWII veteran, with the intention of stealing items from inside. The victim, who was working as a handyman cleaning the Huntington Beach bank parking lot where his van was parked, noticed the defendants in his van. When Warren asked Hill and McKinney what they were doing, the defendants attacked the victim. The defendants hit and kicked Warren in the head, robbed him of his wallet, and left the victim on the ground before fleeing the scene.

Approximately 30 minutes later, a pedestrian found Warren bleeding and moaning on the ground in the parking lot and called 911. The victim gave police a brief description of the two defendants before losing consciousness. Warren was transported to the hospital, where he spent the next three and a half years in a coma.

For this crime, Hill pleaded guilty and was sentenced Oct. 10, 2006,  to nine years in state prison for one felony count of second degree robbery, one felony count of aggravated assault, and admitted to sentencing enhancements for great bodily injury to an elder and committing a crime against a vulnerable victim (Case #03WF2996).

 

McKinney was found guilty by a jury Nov. 15, 2006, of one felony count of second degree robbery and one felony count of aggravated assault. The sentencing enhancement for committing a crime against a vulnerable victim was found true (Case #03WF2996). He was sentenced on Feb. 2, 2007, to four years in state prison.

After spending more than three and a half years on life support in a coma, 81-year-old Warren died on Sept. 22, 2007. The defendants directly caused the head injuries that resulted in the victim's death. 

Hill and McKinney were charged with murder on Sept. 4, 2009. At the time, both defendants were serving prison sentences for the assault and robbery convictions stemming from the same attack. Prior to being charged with murder, Hill was set to be released from prison on Aug. 12, 2011, and McKinney was scheduled to be released on Sept. 1, 2009.

Senior Deputy District Attorney Sonia Balleste of the Homicide Unit prosecuted case.

Man Convicted of Revenge-Murder in Burning-Body Case

December 15, 2011

Case # 07NF2178

MAN CONVICTED OF CONSPIRACY IN REVENGE-MURDER AND ATTEMPTED MURDER OF FAMILY, WHOSE BODIES WERE BURNED AND HOUSE SET ON FIRE *Jury was unable to reach a verdict regarding co-defendant; A third co-defendant is pending trial

SANTA ANA - A man was convicted today for his role in a revenge-murder and attempted murder conspiracy targeting the family of a co-defendant's ex-girlfriend. Two victims were murdered and set on fire and a third was left in a coma after suffering life-threatening injuries.

Vitaliy Krasnoperov, 26, Hollywood, was found guilty by a jury of two felony counts of special circumstances murder, one felony count of attempted murder, and one felony count of conspiracy to commit murder. The sentencing enhancements for multiple murders, murder during the commission of a burglary, and murder during the commission of kidnapping were found true. This was the second jury trial against Krasnoperov, as a previous jury was unable to reach a verdict on May 10, 2011. He is expected to be sentenced to life in state prison without the possibility of parole on March 16, 2012, in Department C-41, Central Justice Center, Santa Ana.

The jury was unable to reach a unanimous verdict during the trial against co-defendant Charles Anthony Murphy, Jr., 27, Mission Hills, who is charged with two felony counts of special circumstances murder, one felony count of attempted murder, and one felony count of conspiracy to commit murder. He faces sentencing enhancements for multiple murders, murder during the commission of a burglary, murder during the commission of kidnapping, and murder for financial gain. Murphy faces a maximum sentence of life in state prison without the possibility of parole if convicted and scheduled for a pre-trial hearing Jan. 13, 2012. 

Co-defendant Iftekhar Murtaza, 27, Van Nuys, faces the same charges and enhancements as Murphy. The Orange County District Attorney is seeking the death penalty against Murtaza, who is scheduled for a pre-trial hearing Jan. 20, 2012, in Department C-41.

Background

In March 2007, 18-year-old Shayona Dhanak was a freshman at the University of California, Irvine, living in the campus dorms. Her father Jaypraykash Dhanak, 56, mother Leela Dhanak, 54, and sister Karishma Dhanak, 20, lived in the family home in Anaheim Hills.

 

On March 29, 2007, 18-year-old Shayona Dhanak ended a two-year dating relationship with Murtaza. The Dhanaks disapproved of the relationship partly because they were practicing Hindus and Murtaza was a non-practicing Muslim. Murtaza is accused of becoming angry about the break-up, believing that Shayona Dhanak's parents were responsible because they did not approve of the relationship and had pressured her to end the relationship.

Circumstances of the Conspiracy

After the break-up, Murtaza is accused of contacting his friend, Krasnoperov, online and telling him in an AOL Instant Messenger (IM) conversation that he wanted to kill Jaypraykash and Leela Dhanak. Murtaza is accused of having an IM discussion with Krasnoperov about ways to murder the victims, including burning their house down or using a hit man.  Krasnoperov offered to contact someone whom he knew "used to do this type of work."

On April 26, 2007, Murtaza is accused of having another online IM conversation with Krasnoperov to discuss an upcoming meeting, arranged by Krasnoperov. They are accused of planning this meeting with the intention of negotiating the murders of the Dhanak family.  Krasnoperov instructed Murtaza to obtain a picture of the victims by sending Shayona Dhanak an IM asking for a photograph from her recent family trip to India.

At approximately 1:30 p.m. on May 21, 2007, Murtaza is accused of contacting and exchanging a series of text messages with his childhood friend, Murphy, and offering him $30,000 "for a job." Murtaza is accused of telling Murphy that they should meet in person to discuss the details. Murphy is accused of agreeing to meet with Murtaza that day and participate in the murders of the Dhanaks that night.

Circumstances of the Murder

On May 21, 2007, the same day Murtaza met with Murphy, the defendants are accused of brutally murdering Jaypraykash and Karishma Dhanak and attempting to murder Leela Dhanak. 

Sometime after 6:30 p.m., Jaypraykash Dhanak, who worked with his wife in Irvine, was in his house alone after leaving work and agreeing to meet Leela Dhanak at home later. The defendants are accused of entering the Dhanaks' home and forcibly restraining Jaypraykash Dhanak. They are accused of beating him, stabbing him repeatedly, and putting him in a bathroom while waiting for his wife and daughter to arrive home.

At approximately 10:30 p.m., Karishma Dhanak was dropped off at home by a friend. The defendants are accused of forcibly detaining her. At approximately 10:45 p.m., Leela Dhanak arrived home from work. The defendants are accused of immediately attacking her and stabbing her in the stomach. They are accused of then dousing the home is gasoline, lighting the house on fire, and attempting to move the three victims to a van outside.

Once outside of the home, the defendants are accused of continuing to beat Jaypraykash Dhanak, who was severely injured and not defending himself. A witness in a nearby park observed the fire and began to run toward the house. As the witness approached, the defendants are accused of putting Jaypraykash and Karishma Dhanak in the back of a van and fleeing the scene. The witness flagged down a nearby police officer in a marked patrol car. The officer was the first to arrive at the scene and discovered Leela Dhanak lying unconscious on her neighbor's lawn. The victims' home was engulfed in flames and was largely destroyed by the fire.

Leela Dhanak was transported to the hospital with severe life threatening injuries. The victim suffered stab wounds to her stomach, blunt force injuries to the head, and third degree burns to her arm. She spent approximately three weeks in a coma and over one month in the hospital.

Shortly after 4:00 a.m. on May 22, 2007, five hours after fleeing the Dhanaks' Anaheim Hills home, the defendants are accused of taking Jaypraykash and Karishma Dhanak to a bike trail at Mason Regional Park in Irvine. They are accused of murdering the victims and setting their bodies on fire with gasoline. The defendants are accused of then fleeing the scene. Officers responding to calls reporting the early-morning fires discovered the bodies.

Officers from the Anaheim Police Department began investigating the case and indentified Murtaza as a suspect. Murtaza is accused of fleeing from Orange County to Phoenix, AZ. On May 25, 2007, he is accused of attempting to flee to India from Arizona with a one-way plane ticket and $11,000 in cash. He was arrested attempting to board a flight to India and was later extradited back to Orange County on June 13, 2007. Subsequent investigation led to the arrest of Krasnoperov on June 22, 2007, and Murphy on August 17, 2007.

Senior Deputy District Attorney Howard Gundy of the Homicide Unit is prosecuting this case.

Five Family Members Charged with Endangering Children in Waste-Infested Home with 110 Cats

December 14, 2011

FIVE FAMILY MEMBERS CHARGED WITH ENDANGERING TWO CHILDREN IN URINE AND FECES-INFESTED HOUSE WITH 110 CATS

 Orange County District Attorney's Office

SANTA ANA - A family of five adults has been charged with exposing two children to severely unsanitary conditions by living in a urine and feces-filled home with 110 cats. The five defendants are Sharon Lynn Howe, 65; her husband John Ed Howe, 68; her daughter Kerri Lynn Howe Moreno, 44; Kerri Moreno's husband Jessy Moreno, 41; and Kerri Moreno's daughter Courtney Lynn Howe Perez, 23.

All five are charged with two felony counts each of child endangerment. Sharon Howe and Courtney Perez are charged with an additional felony count of animal cruelty and face a sentence ranging from probation up to eight years in state prison if convicted. John Howe, Kerri Moreno, and Jessy Moreno face a sentence ranging from probation up to seven years and four months in state prison if convicted. They are expected to be arraigned Jan. 18, 2012, at the Central Justice Center in Santa Ana. The time and Department are to be determined.

Overview of the Case

Sharon Howe and her granddaughter Courtney Perez are accused of using their Santa Ana home to house unwanted cats. They are accused of obtaining many these cats from animal shelters under the pretense of operating a rescue organization to find the animals other permanent homes. The two defendants lived in the home with the other three adult defendants and two little girls, ages 6 and 12 years old.

All five defendants are accused of failing to protect and endangering the two children by having them to live in a severely unsanitary and unsafe environment. Sharon Howe and Courtney Perez are accused of also abusing the cats in their home by keeping them in an unsanitary environment and failing to provide food, water, and proper medical care.

Investigation of the Case

In February 2011, Santa Ana Police Department (SAPD) Animal Services Officers responded to the defendants' home after receiving complaints from neighbors about the foul animal odor emanating from the residence. The responding officers arrived and observed from outside the home an intense odor of urine and feces and live and dead flies congregating around the windows and doors.

Inside the home, the five defendants are accused of allowing two child victims to live in extremely unsanitary, filthy conditions. The Animal Services Officers entered the home wearing paper masks, but had to leave after only a few minutes due to feeling ill as a result of the overwhelming smell. They returned wearing full hazmat gear including body suits and respirators.

The defendants are accused of keeping a grossly unhygienic home with feces and urine all over the floors and other surfaces, as well as cat hair, roaches, and flies. Severe ammonia exposure, which can be caused due to exposure to urine, can cause health problems for humans including respiratory illness, eye irritation, headaches, burns, nausea, vomiting, dizziness, and shortness of breath.

The defendants are accused of having one of the child victims sleep in the living room on a couch, surrounded by cats and constantly exposed to the smell of feces and urine. They are accused of having the other child victim sleep in a bedroom under the same conditions. At least one of the victims was found to have scratches from the cats on her arms and legs. Two of the defendants were found to have cat feces caked on their feet from walking barefoot in the home when officers were admitted into the house.

Child Protective Services was contacted, but were not admitted into the home due to the health and safety risks. The children were not in the home at the time that police entered and the defendants were advised that the victims would not be allowed to re-enter the home and would be taken into protective custody if other accommodations could not be provided. Kerri and Jessy Moreno found alternative housing in February 2011 for the two young girls.

Over the course of multiple hours, the officers captured 110 cats inside of the home, many of them feral. Each cat was taken in a separate carrier for examination and medical treatment. More than 20 of the cats had to be euthanized and all of the surviving cats had severe flea infestations. Half of the cats suffered serious upper respiratory infections, 25 percent had ear mites, and 25 percent had fecal and urinary contamination of their coats. Defendants Sharon Howe and Courtney Perez are accused of failing to provide any veterinary treatment for these animals while in their care.

The total veterinary cost to treat the 110 cats was over $10,000. All of the surviving cats have been adopted by families or rescue organizations. None of the defendants currently live in the home.

SAPD investigated this case. Senior Deputy District Attorney Aleta Bryant of the Special Prosecutions Unit is prosecuting this case.

Alleged San Diego Gang Members Face Trial for Jewelry Robberies in Tustin, Laguna Beach

From the Orange County District Attorney's Office:

December 14, 2011

 Case # 09ZF0073

THREE SAN DIEGO GANG MEMBERS FACE TRIAL FOR CRIME SPREE ROBBERIES IN TWO ORANGE COUNTY JEWELRY STORES *Eight co-defendants have been convicted in this case

SANTA ANA - Opening statements begin today against three gang members for their role in a crime spree involving the armed robbery of two Orange County jewelry stores, identity theft, and street terrorism.

 

Aida Arroyo, 29, is charged with one felony count each of second degree robbery, second degree commercial burglary, and street terrorism, with sentencing enhancements for criminal street gang activity and the vicarious use of a firearm by a gang member.

Michael Burgin, 32, is charged with one felony count each of second degree robbery, second degree commercial burglary, and street terrorism, with sentencing enhancements for criminal street gang activity, the vicarious use of a firearm by a gang member, and two prior strike convictions for first degree burglaries in 1999 and 2002.

Adam Weick, 30, is charged with one felony count each of second degree robbery, second degree commercial burglary, and street terrorism, with sentencing enhancements for criminal street gang activity, the vicarious use of a firearm by a gang member, and a prior strike for kidnapping in 2005.

Opening statements are expected to begin today, Wednesday, Dec. 14, 2011, in Department W-18, West Justice Center, Westminster. The time is to be determined.

This case involved 11 co-defendants, all residents of San Diego County, and was jointly investigated by the Laguna Beach Police Department (LBPD), Tustin Police Department (TPD) and Orange County District Attorney's Office with assistance from the Orange County and San Diego County Sheriff's Departments, Chula Vista and Oceanside Police Departments, and the U.S. Department of Homeland Security.

Co-Defendants

The eight other co-defendants in this case have been convicted. They are:

Salvador Barajas, 31, pleaded guilty Feb. 5, 2010, to one felony count each of receiving stolen property and street terrorism and was sentenced to 225 days in jail and three years of probation.

Touradj Barman, 68, pleaded guilty March 19, 2010, to one misdemeanor count of a pawnbroker failing to report receipt of property and was sentenced to one year of probation and a $10,000 payment to the Victim Witness Emergency Fund.

Sylvia Elena Castaneda, 30, pleaded guilty June 20, 2011, to one felony count of second degree robbery with a sentencing enhancement for criminal street gang activity and was sentenced to five years in state prison.

 

Jose Jesus Garcia, 37, pleaded guilty March 26, 2010, to one misdemeanor count of a pawnbroker failing to report receipt of property and was sentenced to one year of probation and a $10,000 payment to the Victim Witness Emergency Fund.

 Pedro Avina Hernandez, 31, was found guilty by a jury Feb. 2, 2010, of one felony count each of second degree robbery, second degree commercial burglary, and street terrorism, with sentencing enhancements for criminal street gang activity and the vicarious use of a firearm by a gang member. He is expected to be sentenced Jan. 6, 2012, in Department C-40, Central Justice Center, Santa Ana.

Alonso Jose Lopez, 33, was found guilty by a jury May 20, 2010, of one felony count each of second degree robbery, second degree commercial burglary, and street terrorism, with sentencing enhancements for criminal street gang activity and the vicarious use of a firearm by a gang member. He has a prior strike conviction for kidnapping in 1998, Lopez was sentenced July 23, 2010, to 25 years in state prison.

Daisy Oregon, 23, pleaded guilty Feb. 5, 2010, to one felony count each of receiving stolen property and street terrorism with a sentencing enhancement for criminal street gang activity. She has a prior strike for robbery in 2005. Oregon was sentenced to two years and eight months in state prison.

Arturo Carlos Perez, 23, pleaded guilty July 9, 2010, to one felony count each of accessory after the fact and street terrorism with a sentencing enhancement for criminal street gang activity. He was sentenced to two years in state prison.

 Tustin Robbery

At approximately 5:00 p.m. on Aug. 4, 2009, Arroyo is accused of entering Tustin Village Jewelers under the pretense of selling a ring. The jewelry store has security gates and the defendant was buzzed in. While negotiating a price with the store owner, Arroyo is accused of asking to be let out of the store to make a phone call. When the owner buzzed the security gate to let Arroyo out, Burgin and Weick are accused of immediately rushing in to the store wearing caps and bandanas. They are accused of being armed with firearms and demanding at gunpoint that the victim unlock the jewelry cases to give them access to the diamonds.

 One of the defendants is accused of holding a gun to the back of the victim's head and threatening to shoot him if he did not open the safe. The defendants are accused of then duct-taping the victim and putting him in the bathroom. Burgin, Weick, and Arroyo are accused of stealing over $160,000 in jewelry and fleeing the scene.

Laguna Beach Robbery

At approximately 7:00 p.m. on Aug. 25, 2009, Burgin is accused of entering Baca Jewelers in Laguna Beach with Lopez and Hernandez as the store was closing. They are accused of dressing in black and attempting to hide their faces by wearing hoods and baseball caps. The defendants are accused of robbing a store employee at gun-point and stealing over $1 million in watches and jewelry before fleeing the scene.

 Officers from LBPD responded and Burgin is accused of leading police on a pursuit with Lopez and Hernandez from Laguna Beach to Aliso Viejo. The defendants are accused of abandoning their car in an Aliso Viejo parking garage and evading police by fleeing. LBPD officers learned that the abandoned vehicle was owned by Castaneda. Castaneda attempted to impede the police investigation by reporting her car stolen in San Diego County, despite loaning it to Lopez, Burgin, and Hernandez knowing that it would be used for a jewelry store burglary.

Perez assisted Lopez evade arrest and hide in an Oceanside home by acting as a look-out to determine if police were surveiling the home and obtaining a calling card for Lopez to make phone calls without detection. Based on a law enforcement bulletin put out by LBPD, TPD noticed similarities between the two robberies and the agencies began jointly investigating their cases.

Identity Theft and Receiving Stolen Property On Sept. 8, 2009, Barajas drove Castaneda, Oregon and Arroyo to Laguna Beach to pick up Castaneda's car, which had been abandoned after the Aug. 25, 2009, robbery and impounded by LBPD. While Castaneda was meeting with LBPD, the three other defendants stole mail from local Laguna Beach mail boxes. Arroyo is accused of being in possession of and fraudulently using credit cards, which had been stolen in San Diego County the day before.

Subsequent investigation into the robberies revealed that two second-hand jewelry stores in San Diego County, San Diego Jewelry and Loan and J&L Jewelers, were selling some of the stolen jewelry. Garcia attempted to make identifying the stolen jewelry more difficult by grinding off identifying markings. Barman purchased the property, knowing it had been stolen.

All of the defendants, except for Barman and Garcia, are members or associates of a San Diego Hispanic criminal street gang. They planned and committed these crimes to benefit their criminal street gang.

Senior Deputy District Attorney Jim Mendelson of the Gang Unit is prosecuting this case.

 

Border Patrol Busts Bogus Santa and Frosty

From US Customs and Border Protection:

U.S. Customs and Border Protection (CBP) officers assigned to the Los Angeles/Long Beach seaport complex seized 151 life-size decorative lights of Santa Claus, a snowman and a polar bear with electrical adaptors containing counterfeit Underwriters Laboratories, Inc. (UL) markings.

UL is an independent product safety certification organization that rigorously tests and evaluates products for potential risk of fire, shock, and personal injury. Products are not certified until they meet established standards.

Products bearing counterfeit UL certification marks have not undergone this rigorous testing and certification process, and can present potential safety hazards to the end-user.

The holiday figurines were seized on Nov. 23 and 25. CBP officers discovered the infringing merchandise in two shipments arriving from China. The estimated manufacturer’s suggested retail price for the 151 units is $173,000 with an estimated domestic value of $110,000.

These potentially dangerous holiday lights were identified by the Import Safety Commercial Targeting and Analysis Center in Washington, D.C., as part of a joint national operation with the U.S. Consumer Product Safety Commission. 

“Enforcing product safety laws is a top priority for U.S. Customs and Border Protection. By seizing untested and potentially hazardous products at our nation’s largest seaport, CBP officers not only protect the American consumer but contribute to a safe holiday season,” said Todd C. Owen CBP director of field operations in Los Angeles.

In fiscal year 2010, electrical articles presenting potential safety or security risks, with an estimated domestic value of $7.9 million, represented 19% of all commodities seized by CBP.  

DA Says Women Embezzled Money for Luxury Trip to New York; Photos on Facebook

From the Orange County District Attorney's Office:

December 12, 2011

Case # TBA

ROOMMATES CHARGED WITH STEALING AND FORGING $285,000 CHECK AND SPENDING MONEY ON PRIVATE JET, HOTEL ROOMS, AND TIFFANY & CO. SHOPPING SPREE

*Defendants also accused of using stolen money to put deposit on $3.7 million home

WESTMINSTER - Two roommates have been charged with stealing a check from a Newport Beach law firm and changing the value to over $285,000 to spend on a private jet to New York, multiple hotel rooms, and a shopping spree at Tiffany & Co. and Montblanc for them and their friends.

Alexa Johzen Polar, 34, and Robin Antonella Pabello, 33, both of Garden Grove, are each charged with two felony counts of forgery, one felony count of grand theft, and one felony count of grand theft by embezzlement. They face a sentencing enhancement for white collar crime over $100,000. If convicted, the defendants each face a maximum sentence of six years and four months in state prison. The People will be requesting Polar and Pabello be held on $285,000 bail each and the defendants must prove the money is from a legal and legitimate source before posting bail. They are expected to be arraigned today, Monday, Dec. 12, 2011, at 1:30 p.m. at the West Justice Center in Westminster. The Department is to be determined.

(Pabello's Facebook page shows photos from private jet and New York trip. See Pabello's Facebook Photo Album

At the time of the crime, Polar and Pabello were friends who lived together in Garden Grove. Polar worked as a paralegal for a Newport Beach law firm.

Between Sept. 21, 2011, and Nov. 16, 2011, Polar and Pabello are accused of stealing a check for over $19,500 made payable to law firm where Polar was employed. The defendants are accused of removing the payee's name and the amount of the check and re-marking the check with Pabello's name. They are accused of changing the check amount to over $285,000.

 

On Nov. 16, 2011, the defendants are accused of using an ATM to deposit the fraudulent check into a bank account jointly held by Pabello and Polar. They are accused of using the fraudulently obtained money to charter a private jet to fly themselves and several friends to New York City, rent five rooms at a hotel in Times Square, and purchase items from Tiffany & Co. and Montblanc. 

Polar and Pabello are also accused of obtaining cashier checks in the amounts of $100,000 and $33,000 from the fraudulently obtained funds to lease and/or purchase a $3.7 million, 11,000 square foot house in Murietta, CA.

The theft was discovered after the issuing bank rejected the check that the receiving bank had processed. The Cypress Police Department investigated this case. 

Deputy District Attorney Megan Wagner of the Major Fraud Unit is prosecuting this case. 

 

ICE Attorney Who Took Bribes from Illegal Immigrants Sentenced



Department of Justice

LOS ANGELES – A senior attorney with U.S. Immigration and Customs Enforcement (ICE) was sentenced this morning to 212 months in federal prison for taking nearly one-half million dollars in bribes from immigrants who were promised immigration benefits that would allow them to remain in the United States.

        ICE Assistant Chief Counsel Constantine Peter Kallas, 40, of Alta Loma, received the 17⅔-year sentence from United States District Judge Terry J. Hatter Jr.

        In addition to the prison term, Judge Hatter ordered Kallas to pay $296,865 in restitution after fraudulently receiving worker’s compensation benefits.

        “Mr. Kallas has received one of the longest sentences ever seen in a public corruption case,” said United States Attorney André Birotte Jr. “Mr. Kallas took in hundreds of thousands of dollars in bribes – money he obtained by exploiting his knowledge of the immigration system. The lengthy sentence reflects the seriousness of the crimes, which were a wholesale violation of the public trust.”

        Following a three-week trial, a federal jury in April 2010 convicted Kallas of three dozen felony counts – conspiracy, six counts of bribery, two counts of obstruction of justice, seven counts of fraud and misuse of entry documents, three counts of aggravated identity theft, nine counts of making false statements to the Department of Labor, four counts of making false statements to obtain federal employee compensation, and four counts of tax evasion.

        “This case presents an epic display of a public official’s greed,” prosecutors wrote in a sentencing memorandum filed with the court.

        “As a corrupt prosecutor, [Kallas] calculatingly terrorized the idea of justice and the concept of public service,” the memorandum continued. “[Kallas] carried out his crime scheme through elaborate forms of manipulation, lies, and obstructive conduct.”

        Kallas has been in a federal jail since August 2008, about two months after he was arrested by special agents with the Federal Bureau of Investigation at the San Manuel Indian Bingo and Casino in Highland, California. Kallas was arrested after he took a $20,000 bribe from an immigrant during an incident that was captured on casino surveillance cameras and shown to the jury.

        The June 2008 bribe was the last in a series of incidents in which Kallas and his wife, Maria, told illegal aliens that Kallas was an immigration official – either an immigration judge or some other type of high-level immigration official – and that Kallas could obtain immigration benefits for the aliens in exchange for bribes.

        Steven Martinez, Assistant Director in Charge of the FBI in Los Angeles, stated: “Today’s lengthy sentence fits the significant crimes committed by Mr. Kallas and will undoubtedly deter others planning to abuse government power. Mr. Kallas was entrusted to help immigrants abide by the law, but instead he enabled them in breaking the law, by greedily taking advantage of their desperation.”

        During a five-year period that ended with his arrest, the Kallases accepted payments from aliens that totaled at least $425,854.

        Kallas took bribes from some illegal aliens who were offered “jobs” at companies Kallas and his wife had set up. As part of the scheme, Kallas filed fraudulent labor condition applications with the Department of Labor that falsely claimed the companies had offered employment to the aliens.

        On December 16, 2006, Kallas appeared in Immigration Court and, without any authorization, used his position as an immigration prosecutor to ask a judge to dismiss removal proceedings against an immigrant.

        Kallas misused the identities of several real persons by, among things, putting their names on fraudulent documents or on nominee bank accounts used to hide money from the Internal Revenue Service.

        In some cases, Kallas attempted to solve immigrants’ problems by simply making their files disappear. When investigators searched the Kallas residence in June 2008, they discovered a hidden floor safe that contained more than $177,000 in cash and two dozen official immigration files.

        Kallas also illegally obtained more money through workers compensation fraud and tax evasion, claiming total disability and zero income, even as he was conducting the elaborate bribery and fraud scheme.

        Daniel R. Petrole, Acting Inspector General, United States Department of Labor, said: “Today’s sentencing highlights our efforts to investigate fraud against the Department of Labor. The defendant, who is a former Immigration and Customs Enforcement attorney, used shell companies to falsely petition aliens for employment visas. Moreover, he filed for full federal disability benefits for work-related injuries, yet was receiving thousands of dollars in income from his employment scheme. My office and our law enforcement partners remain committed toward combating these types of crimes.”

        According to court documents, the bank records for the Kallases showed that, beyond his salary, approximately $950,000 had been deposited into the couple’s bank accounts since 2000.

        “Corrupt public officials are disgraceful and reprehensible,” noted Leslie P. DeMarco, Special Agent in Charge of IRS - Criminal Investigation’s Los Angeles Field Office. “The crimes committed by Constantine Kallas – including bribery, tax evasion, obstruction of justice, false statements to government agencies, identity theft and workers compensation fraud – violated the trust placed in him as a public official.  Today’s sentencing of Mr. Kallas to 212 months in federal prison, a significant sentence by any measure, demonstrates IRS - Criminal Investigation’s resolve to bring our financial expertise to bear and vigorously investigate public officials who set aside their duty for their own personal financial gain.”

        Terri Tollefson, Special Agent in Charge for the ICE Office of Professional Responsibility, West, stated: “This sentence serves as a sobering warning about the consequences of violating the public’s trust. ICE played a pivotal role in the investigation that led to these criminal charges, and we will continue to hold our employees to the highest standards of professional conduct. Guarding against illegal or unethical behavior is not an option; it is an obligation we have to the people we serve.”

        Maria Kallas, 41, also of Alta Loma, pleaded guilty to conspiracy, bribery and conspiracy to commit money laundering in November 2009. United States District Judge Robert J. Timlin is scheduled to sentence her on May 2.

        Kallas joined ICE’s predecessor agency in June 1998, and he has been on unpaid leave since January 2007.

        The case against the Kallases was investigated by ICE’s Office of Professional Responsibility, the Federal Bureau of Investigation, IRS - Criminal Investigation, and the United States Department of Labor’s Office of Inspector General.

Former Pico Rivera city councilman convicted of conflict of interest

LOS ANGELES – Former Pico Rivera City Councilman Ronald Beilke today was convicted of conflict of interest, the District Attorney’s Office announced.

Deputy District Attorney Sandi Roth of the Public Integrity Division said Beilke was convicted of two misdemeanor counts of conflict of interest for voting on contracts between the City of Pico Rivera and two private businesses, All American Asphalt and Mobility Solutions.

The work stipulated by the contracts benefited Beilke’s Wienerschnitzel franchise in Pico Rivera, the prosecutor said.

Los Angeles Superior Court Judge Lisa Lench ordered Beilke to return for sentencing on Feb. 18, 2011 in Department 132 of the Foltz Criminal Justice Center.

Jurors, who deliberated for two days, found Beilke not guilty of one count of perjury and two counts of conflict of interest, one a misdemeanor, the other a felony.

The contract between the City of Pico Rivera and All American Asphalt was for paving of the intersection within 500 feet of Beilke’s restaurant. The work included decorative, colored concrete, the prosecutor said.

The contract with Mobility Solutions was for the design of a street light, within 500 feet of Beilke’s business, which allowed traffic to flow freely into the shopping center directly connected to his restaurant.

Beilke faces a maximum sentence of one year in county jail. At the time of sentencing, the judge could also issue an order prohibiting Beilke from running for or holding public office for four years.

LENNOX 13 STREET GANG TARGETED IN FEDERAL RACKETEERING INDICTMENT, STATE DRUG CHARGES AND IMMIGRATION ARRESTS

US Department of Justice

  LOS ANGELES – A joint federal-state law enforcement operation this morning led to the arrest of 27 people linked to a Lennox street gang, some of whom are named in a federal racketeering indictment that alleges the gang is a criminal enterprise that has engaged in violent crimes, extortion and narcotics trafficking. Some of those taken into custody today face federal charges, others will be presented to the Los Angeles County District Attorney’s Office for prosecution on various offenses, and some are allegedly illegal immigrants who face criminal prosecution and deportation.

        Today’s operation involved nearly 500 law enforcement personnel and is the result of an 18-month investigation by the federal Southern California Drug Task Force and the Los Angeles County Sheriff’s Department. The centerpiece of the investigation is an 11-count indictment that alleges violations of the federal Racketeer Influenced and Corrupt Organizations (RICO) Act. The indictment charges 15 defendants, with six of those being named in the RICO count. Nine of the defendants named in the RICO indictment were taken into custody this morning, and two were already in state custody.

        Additionally, authorities arrested one woman on a federal weapons charge, eight on state narcotics charges, five on probation violations, two on federal criminal charges of illegal re-entry after deportation, and two on suspicion of being illegal aliens.

        The federal indictment that led to this morning’s takedown focuses on Lennox 13, a street gang that was formed in the mid-1960s by Mexican-Americans in the Lennox area of unincorporated Los Angeles County. Lennox 13 now consists of approximately 650 members, with approximately 250 members regularly conducting criminal activities. The “13” stands for the letter M and was added to the gang’s name about 20 years ago when it became associated with the Mexican Mafia.

        The indictment alleges that drug sales comprised the bulk of the gang’s profits. In the gang’s territory, just east of Los Angeles International Airport, narcotics were typically sold by street-level dealers who were allowed to sell drugs within the gang’s territory if they paid regular “rent” or “tax” to the gang. In exchange for the tax payments, Lennox 13 members protected the drug dealers from robbers and competitors. The indictment also alleges that the gang generated money through routine extortions of legitimate business owners operating in territory claimed by Lennox 13.

        The gang allegedly paid a tax to the Mexican Mafia, which provided protection to Lennox 13 members in the prison system. In addition to the tax paid to the Mexican Mafia, the indictment alleges that the gang used the profits of its illegal activities to purchase weapons and drugs, pay attorney’s fees for gang members who have been charged with crimes, contribute to funeral costs for gang members who have been killed, and deposit money into the prison accounts of incarcerated gang members.

        The RICO conspiracy charge in the indictment alleges a series of specific overt acts, including assaults and narcotics transactions.

        Those named in the RICO indictment are:

 

Miguel Estrada, also known as “Stranger,” 42, of Hawthorne, a Lennox 13 shot-caller who allegedly was directly involved in drug sales, tax collections and extortion of at least one local business (currently a fugitive);
Baldemiro Ulloa, also known as “Pana,” 53, of Lennox, a Lennox 13 shot-caller who allegedly was directly involved in narcotics sales (arrested this morning);
Cesar Facio, also known as “Tamal,” 34, of Lennox, a Lennox 13 member who allegedly distributed cocaine and methamphetamine, collected taxes from drug dealers and was involved in the extortion of at last one local business (arrested this morning);
Marco Ruiz Nario, also known as “Tony” and “Sniper,” 34, of Lawndale, a Lennox 13 member who allegedly supplied cocaine to the gang (arrested this morning);
Jose Manuel Gonzalez, also known as “Cyclone,” 37, of Hawthorne, a Lennox 13 member who allegedly engaged in violent crimes on behalf of the gang (previously taken into state custody);
Cesar Enrique Barreiro, also known as “Weasel,” 24, of Hawthorne, a Lennox 13 member who allegedly participated with Gonzalez in robberies and assaults (previously taken into state custody);
Jorge Arturo Hercules, also known as “Joker” and “Trouble,” 25, of Westmont, a Lennox 13 members who allegedly assaulted innocent citizens on behalf of the gang (arrested this morning);
Elena Martinez, 55, of Hawthorne, who owns a Lennox 13 hangout called The Den in Hawthorne and allegedly distributed cocaine and methamphetamine (arrested this morning);
Donald Salazar, Jr., 45, of Inglewood, who allegedly distributed methamphetamine (arrested this morning);
Alejandro Sepulveda Armenta, also known as “Trini,” 43, of Hawthorne, who allegedly provided methamphetamine to the gang (currently a fugitive);
Santiago Larios Rodriguez, 36, of South Los Angeles, who allegedly supplied the gang with methamphetamine (currently a fugitive);
Joe Martinez, also known as “Scrappy,” 27, of Lennox, a Lennox 13 members who allegedly distributed methamphetamine (arrested this morning);
Robert Velardez, 26, of Gardena, an alleged methamphetamine distributor (arrested this morning);
Maria Hernandez, 51, of Lennox, an alleged narcotics distributor (currently a fugitive); and
Dante Hurtado, 47, of Hawthorne, who allegedly sold narcotics out of a Lennox barbershop where Lennox 13 members congregated (arrested this morning).

Estrada, Ulloa, Facio, Nario, Gonzalez and Barreiro are the six defendants named in the RICO count. The indictment also alleges a series of drug offenses and several violent crimes in aid of racketeering.

 

        “The drug-related violence of street gangs continues to inflict devastation in many of our communities,” said Timothy J. Landrum, Special Agent in Charge, Drug Enforcement Administration, Los Angeles Field Division. “Today’s arrests demonstrate the positive results that can be achieved when law enforcement works together. The DEA is committed to working with our law enforcement partners to ensure fewer drugs and the violence associated with street gangs impact our neighborhoods.”

        Captain Ralph Ornelas, of the Los Angeles County Sheriff’s Department, Narcotics Bureau, stated: “This collaboration of federal, state and local agencies once again proves how much we can accomplish in the fight against gangs like Lennox 13.  Because gang violence isn’t confined to one jurisdiction or community, it is important that each agency work together to better the quality of life for all the surrounding cities and neighborhoods.”

        Those charged in the RICO count face a statutory maximum sentence of 20 years in federal prison. Twelve of the defendants named in the indictment face 10-year mandatory minimum penalties if they are convicted of charged narcotics offenses.

        Those taken into custody this morning on federal charges will be arraigned this afternoon in United States District Court in Los Angeles. Federal prosecutors intent to file writs to take into custody the two defendants named in the federal indictment who are currently in state custody.

        An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

        The RICO indictment also includes a criminal forfeiture count, which will allow authorities to forfeit all property and money associated with the offenses alleged in the racketeering conspiracy charge.

        “Gang crime and gang violence reduce the quality of life in our communities,” said IRS - Criminal Investigation Special Agent in Charge Leslie P. DeMarco. “Today’s takedown of the Lennox 13 street gang is indicative of law enforcement’s resolve to investigate and prosecute those criminals who use violence and intimidation in promoting and protecting their criminal enterprises. In conjunction with our law enforcement partners, IRS - Criminal Investigation follows the money trail to financially disrupt and dismantle racketeering and narcotics trafficking organizations.  We hit the bad guys where it hurts - in their wallets – by taking away their assets and profits.”

        The investigation into Lennox 13 was conducted by the Los Angeles County Sheriff’s Department - Gang and Narcotics Enforcement Team and the Southern California Drug Task Force, which includes special agents with the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigation, and IRS - Criminal Investigation. The Southern California Drug Task Force operates within the High-Intensity Drug Trafficking Area (HIDTA) program, which is designed to enhance and coordinate efforts among local, state and federal law enforcement agencies.

        “Today’s joint operation has dealt a serious blow to a ruthless and dangerous street gang operating here in the Los Angeles area,” said Claude Arnold, Special Agent in Charge of ICE Homeland Security Investigations in Los Angeles. “Working with our law enforcement partners, ICE will continue to target and dismantle these gangs to rid our streets not only of drug dealers, but of the violence and other criminal activity associated with the drug trade.”

        In addition to the participants on the Southern California Drug Task Force, the following agencies participated in this morning’s takedown: the United States Marshals Service; the Los Angeles County Probation Department; and three units with the Los Angeles County Sheriff’s Department - Operation Safe Streets, Homicide Gang Task Force and Community Oriented Policing Services (COPS); the La Verne Police Department, the Monrovia Police Department, the Glendora Police Department, the Hawthorne Police Department, the Irwindale Police Department and the Los Angeles Department of Children Services.