SAN FRANCISCO – U.S. Attorney David L. Anderson of the Northern District of California today urged the public to report suspected fraud schemes related to COVID-19 (the Coronavirus) by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or to the NCDF e-mail address disaster@leo.gov.

In coordination with the Department of Justice, Attorney General William Barr has directed U.S. Attorneys to prioritize the investigation and prosecution of Coronavirus fraud schemes. The NCDF Hotline can receive and enter complaints into a centralized system that can be accessed by all U.S. Attorneys, as well as Justice Department litigating and law enforcement components to identify, investigate and prosecute fraud schemes.

“Unfortunately, there are fraudsters out there who will try to use this public health emergency to scam the public and profit on the pandemic,” said U.S. Attorney Anderson. “As communities throughout Northern California take steps to limit the spread of COVID-19, we are working closely with our law enforcement partners to guard against fraud and bring swift justice to those who try to ply their scams in our district.”

Some examples of these schemes include:

• Individuals and businesses selling fake cures for COVID-19 online and engaging in other forms of fraud.
• Phishing emails from entities posing as the World Health Organization or the Centers for Disease Control and Prevention.
• Malicious websites and apps that appear to share Coronavirus-related information to gain and lock access to your devices until payment is received.
• Seeking donations fraudulently for illegitimate or non-existent charitable organizations.
• Medical providers obtaining patient information for COVID-19 testing and then using that information to fraudulently bill for other tests and procedures.

In a memorandum to U.S. Attorneys issued March 19, Deputy Attorney General Jeffrey Rosen also directed each U.S. Attorney to appoint a Coronavirus Fraud Coordinator to serve as the legal counsel for the federal judicial district on matters relating to the Coronavirus, direct the prosecution of Coronavirus-related crimes, and to conduct outreach and awareness activities.   The Northern District of California has appointed an Assistant U.S. Attorney to be a Coronavirus Fraud Coordinator who can be reached at 415-436-7200.

The NCDF can receive and enter complaints into a centralized system that can be accessed by all U.S. Attorneys, as well as Justice Department litigating and law enforcement components to identify, investigate, and prosecute fraud schemes.  The NCDF coordinates complaints with 16 additional federal law enforcement agencies, as well as state Attorneys General and local authorities.

To find more about Department of Justice resources and information, please visit www.justice.gov/coronavirus.

 

2 more from Pittsburg, 2 from Bay Point

By U.S. Attorney’s Office, Northern District of California

SAN FRANCISCO – Thirteen defendants were indicted on narcotics trafficking charges, announced United States Attorney David L. Anderson and Drug Enforcement Administration (DEA) Special Agent in Charge Chris D. Nielsen.  The indictment follows the arrest of five of the defendants on April 30, 2019, and the execution of search warrants at thirteen locations, including nine residences in Contra Costa County, Humboldt County, Fairfield, Suisun City and Modesto.  

Three defendants are from Antioch including 66-year-old Lorenzo Lee, 63-year-old Deborah Polk and 40-year-old Timothy Peoples. Two others from Pittsburg were indicted, 46-year-old Jeffrey McCoy and 38-year-old Deshawnte Gamboa, as well as 57-year-old Anthony Brown and 26-year-old Evan Martinez-Diaz, both of Bay Point

All thirteen defendants were charged in a single indictment which charges controlled substance offenses involving methamphetamine, heroin, fentanyl, cocaine and cocaine base. The defendants and the charges pending against them are as follows:

Defendant	Age	Residence	Charges	Maximum Statutory Penalty
LORENZO LEE, a/k/a “O.G.”	66	Antioch, California	Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)   21 U.S.C. § 846	Not less than 10 years imprisonment and up to life   Not less than 5 years supervised release and up to life   $10 million fine
			Distribution of and Possession with Intent to Distribute Controlled Substances, Including Cocaine, Cocaine Base, Methamphetamine, and Heroin (Counts 4, 7, and 13-15)   21 U.S.C. § 841(a)(1)	Not less than 10 years imprisonment and up to life   Not less than 5 years supervised release and up to life   $10 million fine
JEFFREY MCCOY	46	Pittsburg, California	Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)   21 U.S.C. § 846	Not less than 5 years imprisonment and up to 40 years imprisonment   Not less than 4 years supervised release and up to life   $5 million fine
			Distribution of Controlled Substances, Including Cocaine Base, Cocaine, and Heroin (Counts 2-7 and 9)   21 U.S.C. § 841(a)(1)	Not less than 5 years imprisonment and up to 40 years imprisonment   Not less than 4 years supervised release and up to life   $5 million fine
ANTHONY BROWN, a/k/a “Ant Man”	57	Bay Point, California	Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)   21 U.S.C. § 846	Not less than 5 years imprisonment and up to 40 years imprisonment   Not less than 4 years supervised release and up to life   $5 million fine
			Distribution of Cocaine Base   21 U.S.C. § 841(a)(1) (Count 7)	Not less than 5 years imprisonment and up to 40 years imprisonment   Not less than 4 years supervised release and up to life   $5 million fine
DESHAWNTE GAMBOA	38	Pittsburg, California	Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)   21 U.S.C. § 846	Not less than 5 years imprisonment and up to 40 years imprisonment   Not less than 4 years supervised release and up to life   $5 million fine
			Distribution of Heroin (Count 9)   21 U.S.C. § 841(a)(1)	Not less than 5 years imprisonment and up to 40 years imprisonment   Not less than 4 years supervised release and up to life   $5 million fine
DEBORAH POLK	63	Antioch, California	Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)   21 U.S.C. § 846	Not less than 5 years imprisonment and up to 40 years imprisonment   Not less than 4 years supervised release and up to life   $5 million fine
			Possession with Intent to Distribute Heroin (Count 15)   21 U.S.C. § 841(a)(1)	Not less than 5 years imprisonment and up to 40 years imprisonment   Not less than 4 years supervised release and up to life   $5 million fine
			Maintaining a Drug-Involved Premises (Count 16)   21 U.S.C. § 856(a)(2)	20 years imprisonment   3 years supervised release   $500,000 fine
EVAN MARTINEZ-DIAZ	26	Bay Point, California	Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)   21 U.S.C. § 846	Not less than 10 years imprisonment and up to life   Not less than 5 years supervised release and up to life   $10 million fine
			Possession with Intent to Distribute Methamphetamine and Cocaine (Counts 13 and 14)   21 U.S.C. § 841(a)(1)	Not less than 10 years imprisonment and up to life   Not less than 5 years supervised release and up to life   $10 million fine
MAGO AGUILAR-PACHECO	38	West Covina, California	Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)   21 U.S.C. § 846	Not less than 5 years imprisonment and up to 40 years imprisonment   Not less than 4 years supervised release and up to life   $5 million fine
CESAR ALVARADO	38	Desert Springs, California	Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 1)   21 U.S.C. § 846	Not less than 10 years imprisonment and up to life   Not less than 5 years supervised release and up to life   $10 million fine
			Possession with Intent to Distribute Cocaine, Heroin, and Methamphetamine (Counts 11-14)   21 U.S.C. § 841(a)(1)	Not less than 10 years imprisonment and up to life   Not less than 5 years supervised release and up to life   $10 million fine
JESSE LOPEZ, III	30	Fowler, California	Possession with Intent to Distribute Fentanyl (Count 8)   21 U.S.C. § 841(a)(1)	Not less than 10 years imprisonment and up to life   Not less than 5 years supervised release and up to life   $10 million fine
JOSE DELGADILLO, a/k/a “Tepa”	41	Fairfield, California	Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Counts 1 and 10)   21 U.S.C. § 846	Not less than 10 years imprisonment and up to life   Not less than 5 years supervised release and up to life   $10 million fine
MARCO DELGADILLO, a/k/a “Tonio”	39	Fairfield, California	Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 10)   21 U.S.C. § 846	Not less than 10 years imprisonment and up to life   Not less than 5 years supervised release and up to life   $10 million fine
LUIS TORRES-GARCIA, a/k/a “Guero”	33	Rio Dell, California	Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances (Count 10)   21 U.S.C. § 846	Not less than 10 years imprisonment and up to life   Not less than 5 years supervised release and up to life   $10 million fine
TIMOTHY PEOPLES, a/k/a “Tee”	40	Antioch, California	Possession with Intent to Distribute Cocaine and Cocaine Base (Counts 17 and 18)   21 U.S.C. § 841(a)(1)	Not less than 5 years imprisonment and up to 40 years imprisonment   Not less than 4 years supervised release and up to life   $5 million fine

The defendants arrested on April 30, 2019, were originally charged by complaint.  The complaints have been unsealed.  Eight defendants were charged in complaints that were supported by an affidavit describing the underlying investigation (the Affidavit).  In addition, a separate complaint was filed against defendant Timothy Peoples, and that complaint has been unsealed as well.

According to the Affidavit, this investigation started in 2017 and involved the DEA, the United States Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Antioch Police Department, Oakley Police Department, and Concord Police Department.  In 2017 and 2018, the investigators used informants to conduct a series of purchases of cocaine, cocaine base and heroin from JEFFREY MCCOY.  In furtherance of their investigation, the agents also obtained federal wiretap orders in 2018 and 2019 to monitor communications over telephones used by the conspirators.

According to the Affidavit, the agents also seized significant quantities of narcotics from various defendants during the investigation.  The following chart summarizes the seizures, which are discussed in more detail in the Affidavit: 

DATE	SEIZED	CIRCUMSTANCES
5/15/2018	4 kg of heroin mixed with fentanyl and $46,000	Seized from courier after leaving LEE’s residence
8/8/2018	18 lbs of methamphetamine	Seized en route to TORRES-GARCIA from Jose DELGADILLO
1/26/2019	2 kg of cocaine	Seized en route to meeting point with LEE
2/9/2019	7 kg of narcotics and $104,505	Seized from courier after leaving LEE’s residence
2/9/2019	20 lbs of methamphetamine and 1 kg of cocaine	Discarded from courier’s vehicle after leaving LEE’s residence

In addition, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. 

This case was investigated and prosecuted by member agencies of the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies.

Allen D. Payton contributed to this report.