Tag Archive for: San Diego County District Attorney

During a news conference,DA Summer Stephan holds up the Tax Form used by gang members accused of COVID Tax Fraud.

17 Defendants Indicted for Committing $1.7 Million in COVID Tax Fraud

San Diego County District Attorney Summer Stephan today announced a grand jury indictment of 17 defendants who filed illegal tax returns claiming credits for COVID relief totaling more than $2.2 million. The case involves four separate San Diego-based criminal street gangs, including one rival gang, which participated in the tax fraud scheme for an ultimate loss to the IRS of $1,752,788.

[WATCH THE LIVE STREAM OF THE NEWS CONFERENCE, HERE.]

Photo of the Tax Refund confirmation and the jewelry bought by the defendants.

Photo of the tax refund confirmation and the jewelry bought by the defendant.

Defendant Stephen Pittman, Jr., 31, recruited individuals and assisted them in filing their fraudulent tax claims and then took a large percentage of the refund. Between April 2022 and October 2022, multiple known, violent, gang members conspired with one another to commit this scam for personal profit, and to benefit their criminal street gangs. Pittman used some of the money to purchase diamond encrusted Cartier and Rolex watches, three diamond chains, and a diamond encrusted necklace of his gang moniker.

“This case demonstrates the lengths to which streets gangs will go to seek novel ways to fund their violent criminal enterprises and line their pockets, in this case successfully bilking the taxpayers out of nearly two million dollars,” said DA Stephan. “The dedicated investigators and prosecutors handling this case followed the paper trail for months in order to allow us to file charges and hold these individuals responsible for this large-scale scam.”

The scam was simple. 2021 Tax Form 7202 included a line item intended for COVID Relief, entitled “Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals.” The IRS system stated, “Don’t enter more than 60 days” in this field. However, the number was manipulated to increase the fraudulent tax refund. In each of the co-defendants’ cases, more than 60 days were fraudulently inputted: ranging from 790 days to 15,678 days. As a result of the fraudulent entries, the returns garnered payments from the IRS ranging from $97,645 to $229,153 directly into their bank accounts.

The various defendants are charged with 81 felony counts including conspiracy to commit a crime, filing a fraudulent tax return, assisting in the filing of a fraudulent tax, receiving stolen property, and money laundering. Law enforcement arrested 14 of the defendants on Tuesday, two defendants were already in custody and one defendant remains at large. Arraignments for most of the defendants took place today in San Diego Superior Court. If convicted of the charges, the defendants face sentencing ranging from 16 months in jail, to life in state prison.

The fraud was discovered during the course of a homicide investigation when law enforcement found notice of an IRS refund on one of the suspect’s phones. That separate homicide investigation has led to four defendants being charged for the revenge murder of a rival gang member. That case is pending with one of the defendants having been convicted and sentenced to life in prison without the possibility of parole.

The San Diego Police Department’s Financial Crimes Division was the lead investigative agency on the case and prosecutors worked closely with the East County Gangs Task Force.

“This case is a testament to the thoroughness of our investigators, whose diligence not only helped solve a homicide but helped uncover a significant criminal scheme involving a network of street gangs,” said SDPD Chief Scott Wahl. “The funds these suspects siphoned away were meant for the community most deeply touched by the pandemic, and that’s fraud our department won’t stand for.”

The defendants named in the grand jury indictment are Dajon Johnson, 23, Deonte Sherman, 29; Cora Wulff, 25; Roshan McKinney, 29; Shamira Clark, 21; Ashley Davis, 34; Shamar Garcia, 37; Haben Haile, 26; Stephen Pittman, Jr., 31; Jenelle Poutoa, 27; Brandon Scales, 53; Donte Sheffield, 35; Dominik Wells, 47; Gregory Baul, 23; Michael Brooks, 41; Tahamon Brooks, 53; and Michael Bullock, 55.

This case is being prosecuted by Deputy District Attorneys Vanessa Gerard and Ted Fiorito.

[WATCH THE LIVE STREAM OF THE NEWS CONFERENCE, HERE.]

District Attorney Summer Stephan stands at a podium for a press conference with the Consulate General of Mexico Alicia Kerber-Palma, Attorney General of Baja California Maria Elena Andrade, the Director of Baja California Justice Center for Women Magdalena Bautista, and the Director of One Safe Place: The North County Family Justice Center Claudia Grasso.

DA Announces Historic International Partnership with Baja California Attorney General and Family Justice Center

San Diego County District Attorney Summer Stephan announced today the start of a historic partnership with the Attorney General of the State Baja California, the State of Baja California Justice Center for Women and the DA’s One Safe Place: The North County Family Justice Center. There are close to 300 Family Justice Centers world-wide and this agreement makes One Safe Place the first Family Justice Center to have an international partnership. Baja California is the 12th-largest state by area in Mexico.

The DA also announced the renewal of a partnership between the Consul General of Mexico in San Diego and the San Diego County District Attorney’s Office for the Mexican Consulate to have presence at One Safe Place via community outreach, crime prevention and vital services for the victims we serve. The partnerships were solidified with the signing of a Memorandum of Understanding (MOU) today. 

“Criminals who prey on victims for human trafficking, exploitation and violence know no borders,” said DA Summer Stephan, “Thousands cross the border every day between Tijuana and San Diego to go to work, school or visit family and friends and we know that there are many who are victims of crime on either side of the border. With this partnership, we will work together to cross-refer victims and provide vital services on both sides of the border to further regionalize help and ensure they can get to a safe and healing place no matter where they live or work.”

Since opening in July 2022, One Safe Place has served over 5,500 individuals, provided legal services to approximately 1,500 people, and received more than 16,000 calls and emails to their various helplines. One Safe Place provides support services all under one roof to anyone who has experienced child abuse, sexual assault, domestic violence, hate crime, elder abuse, human trafficking, violent loss, family violence, or other abuse or victimization. This is all in collaboration with over 100 community organizations and agencies like the Mexican Consulate and now the Attorney General of the State of Baja California and the State of Baja California Justice Center for Women, created to prevent violence against women and girls by providing legal, psychological and social services. Victims will no longer be forced to cross the border, sometimes waiting hours, to get to services. This partnership will ensure culturally-sensitive referrals for victims to access resources where they live, work or where they are most comfortable.

“Violence against women, children, and vulnerable people leaves a deep mark on their lives. It is necessary to develop and implement action protocols to guarantee comprehensive and sensitive care for victims of gender violence,” said the Attorney General of Baja California, Maria Elena Andrade Ramírez. “For this reason, I thank the San Diego County Attorney’s Office for providing a space where Mexican authorities can assist their fellow citizens who are victims of this crime. Baja California and California share a history of fighting against criminals who commit crimes on both sides of the border. We are convinced that working together is an opportunity to strengthen the bonds of friendship and cooperation to ensure that victims receive help to heal their physical and emotional wounds, as well as guarantee justice for them.”

 

“Considering the reality of gender violence in our state and our close relationship with the United States, strengthening binational cooperation is not only important, it is imperative,” said Magdalena Bautista, Director of the State of Baja California Justice Center for Women. “Violence against women does not recognize borders, so justice and protection should not have limits either. Through this memorandum of understanding, we are taking a significant step to expand our impact and effectiveness in providing care and access to justice for women, and we reaffirm more strongly than ever our commitment to building a future where no woman has to live in fear, and where justice knows no borders.”

District Attorney Summer Stephan stands with the Consulate General of Mexico Alicia Kerber-Palma, Attorney General of Baja California Maria Elena Andrade, the Director of Baja California Justice Center for Women Magdalena Bautista, all holding up the signed MOUs.The renewal of the MOU with the Mexican Consulate further creates opportunities for collaboration with One Safe Place in outreach and prevention work, including the Consulate’s participation in the free informative community event “Cafecito Con La Comunidad” which takes place the second Friday of every month at One Safe Place. Together, the Mexican Consulate and One Safe Place have hosted events on wellness, have made college connections for first generation students and provided Consulate services at One Safe Place to meet the needs of the North County community and alleviate transportation barriers for those who are unable to travel to the Consulate’s main office in downtown San Diego.

“Addressing domestic violence requires a collective effort,” said Alicia Kerber-Palma, Consul General of Mexico in San Diego. “It is crucial that we work together – government agencies, community organizations, and local leaders – to provide support to victims and prevent future cases of abuse. Consular assistance and the protection of Mexican communities abroad through the Consulate General of Mexico in San Diego constitutes the highest priority of our foreign policy.”

 

“The continued partnership with the Mexican Consulate has helped strengthen a bridge with the Latino community and helps enhance their trust in law enforcement when reporting crime and seeking help when victimized,” said DA Stephan. “Together we will continue to work to ensure that victims who seek services at One Safe Place, where the Mexican Consulate is an onsite partner, receive culturally sensitive help in their native language that focuses on safety, justice and healing.”  

One Safe Place: The North County Family Justice Center is located at 1050 Los Vallecitos Blvd., San Marcos, CA 92069. It is open Monday through Friday from 8 a.m. to 6 p.m. and on Saturdays from 8 p.m. to 12 p.m. The State Baja California Justice Center for Women is located at Avenida Moctezuma #1, Colonia Residencial de Cortez, Camino Verde, 22190 Tijuana, Baja California, with hours of operation 24 hours a day, 7 days a week.

[VIDEO of One Safe Place: The North County Family Justice Center.]

How to Avoid Romance Scams

In this week’s DA News Update, DA Summer Stephan talks about common “romance scams” and important tips on how to avoid them.

DA Weekly News Update with DA Summer Stephan 08-15-24

In this week’s DA News Update, DA Summer Stephan alerts victims of the Santana High School shooting about the upcoming parole hearing scheduled for the shooter. She also talks about the importance of victims’ rights, including their right to participate in parole hearings.

DA Summer Stephan speaks at a podium with city, county and state leaders standing behind her.

DA Collaborates with City Attorney’s Casa Mariposa Domestic Violence Shelter

On Friday, June 21, 2024, District Attorney Summer Stephan joined San Diego City Attorney Mara Elliott and Senator Toni Atkins to celebrate the arrival of a new shelter option for families who are fleeing domestic violence. The Casa Mariposa Domestic Violence Shelter will offer survivors the services they need to get their lives back on track and ensure they do not fall into homelessness when they leave their abusers. Both the City’s Your Safe Place and the County’s One Safe Place (North County Family Justice Center) Family Justice Centers will make referrals to Casa Mariposa, operated by SBCS (formerly South Bay Community Services). A large percentage of unsheltered women were victims of domestic violence — physical, psychological, and sexual — before becoming homeless. If you or someone you know is a victim of domestic violence, visit sandiego.gov/yoursafeplace or go to onesafeplacenorth.org for help.

Photo of the cover of the DA's Annual Report 2023.

DA Releases 2023 Annual Report

San Diego County District Attorney Summer Stephan released the DA’s 2023 Annual Report, noting a number of recent accomplishments across many different areas of her office’s mission.

“As one of the few public service offices that represents all 18 cities and 39 unincorporated communities that make up our beloved San Diego County, we are fiercely committed to the right of every child, adult and senior to live with safety and dignity,” DA Stephan said. “In this report you will find reflected the work of the dedicated DA team of prosecutors, investigators, victim advocates and staff working alongside law enforcement and the communities we serve to keep San Diego one of the safest urban counties in America.”

The Annual Report can be found online here.

The report includes:

  • A breakdown of prosecutions by crime type
  • A description of notable and high-profile criminal cases
  • An account of services provided to crime victims
  • Stories of hope from users One Safe Place – the North County Family Justice Center
  • Facts and figures of our outreach in the community

The DA’s Office is the Largest Provider of Victim Services in San Diego County

Keeping up with this year’s theme for National Crime Victims’ Rights Week “How would you help? Options, services, and hope for crime survivors,” it is a little-known fact that the DA’s Office is the largest provider of victim services in San Diego County. There are currently 20 Victim Advocates in the San Diego County District Attorney’s Victim Assistance Program. In 2023, they assisted 9,942 new crime victims. This assistance included 814 crisis interventions and 11,865 resources and referrals. See what they do, in this video!

New Task Force Has Early Success Focusing on Chronic Crime Among the Homeless

San Diego County District Attorney Summer Stephan, City Attorney Mara Elliott, and San Diego Police Chief David Nisleit announced successful felony prosecutions today stemming from a recently-formed task force to address the issue of chronic criminal offenders within the unhoused population in the City of San Diego. The San Diego Accountability Renewal and Community Health Task Force (SD ARCH) was formed late last year to focus on criminal offenses most negatively impacting unhoused individuals and surrounding communities. These offenses include repeated drug sales, drug use, theft and vandalism.

[WATCH NEWS CONFERENCE HERE]

Four defendants have been convicted and sentenced in connection with the task force’s work. They include Frederick Johnson, 59, who was arrested for possession of methamphetamine for sale after officers found an ounce of methamphetamine plus an additional 13 vials of the drug in his van. Johnson was later re-arrested after he failed to appear in court and officers found more meth and five cell phones in a tent he was living in at Linda Vista Park.

In a second case, defendants Della Infante, 59, Angel Bernardo Reyes, 55, and Ramon Julio Byars, 44, were all convicted of sales of a controlled substance after undercover officers repeatedly bought methamphetamine from them. In the months prior to the incidents, there were more than 21 narcotics-related crime cases and over 25 arrests and citations for narcotics related incidents in the area around Sports Arena Blvd.

“It is unacceptable to allow blatant and repeated criminal activity to continue unabated without consequences,” said DA Stephan. “Offenders who commit the types of crime negatively impacting residents, business owners and other unsheltered individuals are a small but active percentage of the homeless population. Our goal is not to simply incarcerate members of that community but, instead, compel them to accept the treatment and services they need and thus, assist them in ending the cycle of crime and homelessness.”

“San Diegans have the right to expect us to use our powers as prosecutors wisely, focusing our resources of the most serious crimes, such as drug trafficking,” said City Attorney Elliott. “The progress we are announcing today reflects our commitment to that approach.”

“The San Diego Police Department is committed to addressing crime on our streets, particularly when it involves drug activity,” said Chief Nisleit. “The SD ARCH Task Force brings together a collective group to make an even greater impact. We are proud to be a part of this task force that will hold criminals accountable, provide resources to those in need and reduce crime in our communities.”

Two years of data show the overdose rate for people experiencing homelessness is 118 times higher than the general population. Being a victim of domestic violence, child abuse and human trafficking are found to high factors contributing to a person becoming homeless— especially for women and children.

“If we want our community to improve, we can’t allow open-air drug markets to rule homeless encampments,” DA Stephan said. “Unhoused people are already vulnerable and to further keep them in the clutches of addiction is cruel.”

“I want to strongly support the statement from our District Attorney that we cannot and will not allow open air drug markets on the streets of our city,” said Elliott. “Those experiencing homelessness or suffering from addiction are entitled to our compassion, but that does not give anyone a license to commit crimes in our community. We take drug offenses very seriously in San Diego because drug offenses often lead to the commission of more serious crimes.”

The SD ARCH Task Force is comprised of representatives from the District Attorney’s Office, City Attorney’s Office and San Diego Police Department and it meets at least once a month.

[WATCH NEWS CONFERENCE HERE]

Political Consultant Jesus Cardenas Sentenced on Grand Theft Charges

San Diego County District Attorney Summer Stephan said today that defendant Jesus Cardenas, 41, has been sentenced to 45 days in work furlough, 135 days in home detention and two years formal probation for committing two felony counts of grand theft. Should he violate the terms of his probation, Cardenas could be ordered to serve up to two years and eight months in custody. Cardenas pleaded guilty to fraud related to funds obtained from the federal Paycheck Protection Program and the state Employment Development Department. Cardenas acknowledged cheating the U.S. government out of $176,000 in COVID-19 relief funds which he laundered and used to pay for personal expenses. He also unlawfully applied for over $26,000 in unemployment benefits.

As part of his probation, Superior Court Judge Rachel Cano ordered Cardenas must submit to search and seizure, must operate any business legally and comply with all rules and regulations of such business including being licensed, paying taxes, and comply with any campaign finance laws. He must also pay back the full amount of the funds he stole including $176,227 to the Small Business Administration joint and several with the co-defendant Andrea Cardenas, $26,700 to the Employment Development Department, and an amount to be determined to the Franchise Tax Board.

“Our dedicated prosecution team conducted a thorough investigation resulting in the service of 27 search warrants to examine financial and email accounts,” DA Stephan said. “They uncovered and proved that Cardenas had engaged in multiple fraud schemes over several years. In these types of cases, we often rely on the public, the media, or people who suspect wrongdoing to report potential public integrity crimes to our office so we can investigate. Members of the public, and members of local media outlets like La Prensa deserve recognition for their reporting, which helped bring this case to light.”

Cardenas began operating a political consulting firm called Grassroots Resources in 2016. In 2019, Grassroots Resources began acting as a payroll service for one of their clients, Harbor Collective, a marijuana dispensary. In early 2021, Grassroots Resources was being pressured to pay off debts including money owed to TMC Direct, a political mailing company.

In February 2021, Cardenas filed for a Paycheck Protection Program (PPP) Loan from the Small Business Administration via PayPal. He misrepresented multiple items on the application, including: that Grassroots had 34 employees, when in reality these 30 of these individuals worked for Harbor Collective; that they were not engaged in activity illegal under federal law (marijuana dispensaries are not legal under federal law); that they were not a business engaged in political consulting; and that the loan funds would be used to cover payroll expenses. The loan was approved for $176,227.

On May 3, 2021, the $176,227 of PPP loan funds were deposited into a Grassroots Business account. Over the course of the next two weeks, the money was transferred between two different Grassroots accounts. From there, Cardenas used the PPP funds to pay off multiple personal expenses including $21,000 owed to American Express and he transferred $35,000 to his sister’s personal Wells Fargo account where much of it was used to pay of campaign debt she owed.

In a separate fraud scheme, in 2020, Cardenas unlawfully applied for unemployment benefits and received $26,700 from the Employment Development Department. He misrepresented on applications that he was not working and not receiving any income. However, his political consulting business was fully operational during that election year, handling the campaigns of multiple candidates and other entities.

This case was prosecuted by the San Diego County District Attorney’s Office Public Integrity Unit. Team members included Deputy District Attorney Chandelle Boyce, Deputy District Attorney Hector Jimenez, Deputy District Attorney Leon Schorr, District Attorney Investigator James Hawksley, District Attorney Investigator Justin Bostic, and Forensic Accountant Kevin Boyne. The investigation was also assisted by the Department of Homeland Security COVID Fraud Unit.

DA Investigators Join Shop With A Cop

This past weekend, 15 DA Investigators spent a day with 15 elementary school students at SeaWorld and went shopping at Target as part of the annual Shop with a Cop event for the holidays. Watch how the fun day unfolded in this video.