Tag Archive for: SDPD

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.]

Grand Jury Indicts 51 Defendants in East Village Open-Air Drug Market Case

San Diego County District Attorney Summer Stephan announced today that 51 defendants have been indicted by a grand jury for their roles in selling cocaine base at an open-air drug market in East Village, an area that over a two-year period received 56,000 calls for police service. [WATCH COMPLETE NEWS CONFERENCE]

After three-and-a-half-weeks of presenting evidence, the grand jury returned indictments on April 24, against 51 defendants on hundreds of felony drug sales charges, drug manufacturing, weapons offenses, child abuse, resisting arrest, and gang allegations. Twenty-seven defendants were arrested during a day-long sweep involving over 100 officers on April 23. The defendants were arraigned in San Diego Superior Court on Wednesday and Thursday of this week. Based on the charges and their criminal records, the defendants are facing prison sentences between one year and life in prison.

“I refuse to allow San Diego streets to turn into open-air drug markets controlled by gangs like you see in other areas of the country,” DA Summer Stephan said. “Our streets and neighborhoods belong to the community and not to criminal organizations that line their pockets from the sale of addictive drugs that result in rampant overdoses and incubate violence and destruction. When a criminal street gang controls an entire neighborhood and specifically a known intersection, every person who drives, walks, does business or runs errands in the area is victimized.”

The calls for service in the East Village area near 16th and K Streets kicked off a large-scale investigation by the San Diego Police Department and the District Attorney’s Gang Unit. Deputy District Attorney Miriam Hemming and Deputy District Attorney Michelle Sellwood worked relentlessly with SDPD and the DEA’s Narcotics Task Force to identify the defendants and convene a grand jury. The one-year operation consisted of undercover officers purchasing drugs directly from dealers, surveillance, and the execution of multiple search warrants.

“The San Diego Police Department is constantly monitoring areas that may become hot spots for crime,” said San Diego Police Chief David Nisleit. “Calls for service and resident complaints in this area showed that something had to be done. This operation represents more than a year of dedicated work by investigators and prosecutors to disrupt the history of drugs and violence that plagued the East Village community. We are grateful to all of our partners for their help in holding these criminals accountable and will keep a close watch on this area to maintain the great progress we’ve made.”

It became clear during the operation that the impetus behind the success of this particular drug market was that it was largely operated and directed by gang members working in concert to benefit from rampant illegal drug sales at all times of day or night. After officers would arrive to arrest suspects on smaller scale offenses to curb the rising crime, the illegal activity would resume as soon as police left the area. In addition, officers discovered that gang members were conducting countersurveillance on law enforcement.

Over a two-year period from April 2021 through April 2023, there were nearly 56,000 calls for service to the San Diego Police Department, of which 6,187 were for violent acts. In addition, there were at least 6,500 arrests in the gang-controlled East Village open air-drug market.

In addition to the 51 indictments, 42 additional defendants have been charged with drug, gun, and violence cases, 16 of which included gang allegations. Law enforcement recovered a significant amount of contraband, including over 30 firearms, 3 pounds of cocaine base, nearly 8 pounds of cocaine powder, 350 grams of methamphetamine, 726 fentanyl pills, and over $79,000 in cash.

The dangers of this open-air drug market were so grave that there were over 1,000 overdose calls to police, multiple shootings, stabbings and assaults. Two of the intended indictees were shot and one of them was killed.

“This indictment is a testament to the cooperation and coordination of our law enforcement partners at SDPD and the Narcotics Task Force, working closely with our Gangs Division, that these defendants were identified and will now face justice,” Stephan said.

[WATCH COMPLETE NEWS CONFERENCE]