Adam Christopher Vega Arrested, Charged with Meth and Marijuana Trafficking Conspiracy

Adam Christopher Vega, 30, of Bakersfield, was arrested in Bakersfield after being charged in a seven-count federal indictment alleging that he and four co-conspirators trafficked in methamphetamine and marijuana, Drug Enforcement Administration Special Agent in Charge Jay Fitzpatrick and United States Attorney Benjamin B. Wagner announced.

The superseding indictment, returned by a federal grand jury in Fresno on January 16, 2014, charges Vega and co-defendants Baltazar Castaneda Garcia, 23; Jesus Manuel Peraza Ruiz, 54; and Robert Anthony Canchola, 26, all of Bakersfield, with conspiring to distribute methamphetamine. Those four persons and Eduardo Ortega Chavez, 32, of Oakland, are also charged with conspiring to manufacture and distribute marijuana.

According to court documents, Vega was the owner of the California’s Best Cooperative Inc., a medical marijuana dispensary in Bakersfield during the time he was allegedly trafficking in methamphetamine and marijuana. Court documents indicate that the defendants trafficked in marijuana and other controlled substances between Kern County and Oakland where defendant Chavez maintained a marijuana grow operation. In October 2013, Ruiz was stopped in Bakersfield with approximately six pounds of methamphetamine concealed in his vehicle as he was returning from Southern California. Garcia and Canchola are also charged with possession of methamphetamine and manufacturing marijuana in connection with substances that were seized during searches at three residences in Bakersfield on January 8, 2014, including two that contained indoor marijuana grow operations.

This case is the product of an investigation by the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), Bakersfield Police Department, Kern County Sheriff’s Office, and Kern County Probation Department. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.

Vega will make his initial appearance before a U.S. Magistrate Judge in Bakersfield. Defendant Ruiz was previously ordered detained in this case. Defendants Garcia and Canchola are temporarily detained pending a detention hearing. An arrest warrant has been issued for defendant Chavez.

If convicted, Vega, Garcia, Ruiz and Canchola face a maximum statutory penalty of 10 years to life in prison and a $10 million fine. If convicted, Chavez faces a maximum statutory penalty of five to 40 years in prison and a $5 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

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Leonard "Juice" Coker, Wilkinsburg Shooting Suspect, Captured by US Marshals Fugitive Task Force

The U.S. Marshals Western Pennsylvania Fugitive Task Force (WPAFTF) arrested fugitive Leonard “Juice” Coker at approximately 12:30 pm this afternoon at a residence in Penn Hills. Coker, age 22, was charged by the Allegheny County Police on December 24, 2013 with Criminal Attempt - Criminal Homicide, Carrying a Firearm without a License, Aggravated Assault and Recklessly Endangering another Person. These charges arose out of an incident occurring at a Wilkinsburg barber shop on October 31, 2013. Coker is alleged to have entered the barber shop and shot the male victim multiple times as he sat in a chair getting his hair cut.

Coker was also wanted by the Penn Hills Police Department based on a December 19, 2013 arrest warrant charging him with Carrying a Firearm without a License, Carrying a Loaded Weapon, Resisting Arrest and Escape. Additionally, Coker was also wanted pursuant to an Allegheny County Court of Common Please probation violation arrest warrant issued December 19, 2013 for the underlying offense of Firearms not to be Carried without a License
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Coker was last known to reside in the New Kensington area and was known to frequent the Penn Hills, New Kensington and Arnold areas. WPAFTF members arrested Coker this afternoon without incident in the first floor of a residence in the 100 block of Marose Drive, Penn Hills. Following his arrest, Coker was turned him over to the custody of Allegheny County Police Homicide Detectives.

The U.S. Marshals Fugitive Task Force is comprised of officers from the Pennsylvania State Police, Pennsylvania Board of Probation and Parole, Pittsburgh Bureau of Police, Allegheny County Sheriffs, and Westmoreland County Sheriff’s. These agencies, along with the United States Attorney’s Office, are participating members of the U.S. Marshals Western Pennsylvania Fugitive Task Force (WPAFTF.

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Jeffrey Leonard Wanted in Connection With Two Armed Robberies Arrested by U.S. Marshals Fugitive Task Force in New Hampshire

Members of the U.S. Marshals Fugitive Task Force from both New Hampshire and Massachusetts arrested fugitive Jeffrey Leonard, age 29. Leonard was being sought in connection with two armed robberies in MA.

Earlier this month, the U.S. Marshals Fugitive Task Force in Massachusetts had been requested to assist in the location and arrest of Jeffrey Leonard. Leonard was wanted by both the Yarmouth and Dennis, Massachusetts Police Departments on outstanding arrest warrants for armed robbery while masked with a firearm. Information developed by the Marshals Task Force in Massachusetts, led investigators to NH, where Leonard was originally from and had a previous conviction for another armed robbery.

Investigators narrowed their search to a residence in the 900 block of Union Street in Manchester, NH. After a period of surveillance, it was determined that Leonard was likely inside the residence. Officers initially checked the apartment that Leonard was believed to be in without finding him. A further search of the residence led investigators to the basement where Leonard was found hiding, and he was arrested without any further incident.

The Hillsborough County Sheriff’s Office has charged Leonard as a fugitive from justice on the two outstanding Massachusetts arrest warrants.

These arrests were made by members of the task force, including; Rockingham, Hillsborough, & Belknap County Deputy Sheriffs, deputy U.S. Marshals from MA and NH.

Since the inception of the New Hampshire Joint Fugitive Task Force in 2002, these partnerships have resulted in over 5,523 arrests. These arrests have ranged in seriousness from murder, assault, unregistered sex offenders, probation and parole violations and numerous other serious offenses.

Nationally the United States Marshals Service fugitive programs are carried out with local law enforcement in 94 district offices, 85 local fugitive task forces, 7 regional task forces, as well as a growing network of offices in foreign countries.

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Dr. Charles DeHaan of Housecall Physicians Group, Arrested on Charge of Health Care Fraud

A local physician whose license was suspended this month was arrested on a federal complaint alleging health care fraud. Charles S. DeHaan, 59, of Belvidere, Illinois, was charged with engaging in a scheme to defraud Medicare. The complaint alleges that as a part of the scheme, DeHaan operated Housecall Physicians Group of Rockford, S.C., located in Rockford. The charge alleges that DeHaan submitted false claims to Medicare in December 2013.

In support of the charge, the complaint alleges that between 2010 and 2013, DeHaan billed Medicare for medical services that he did not provide to at least five patients. Instead, DeHaan engaged in sexual misconduct with four of these patients, all women, and offered or provided prescriptions for controlled medications, according to the complaint affidavit.

DeHaan appeared before United States Magistrate Judge Iain D. Johnston, who ordered that he be held in custody until a detention hearing is conducted.

The charge of health care fraud carries a maximum potential penalty of up to 10 years in prison, a fine of up to $250,000, and full restitution.

The charges were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent in Charge of the Chicago Office of Federal Bureau of Investigation; and Lamont Pugh, III, Special Agent in Charge of the Chicago Regional Office of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG)

The federal case was investigated by the FBI and HHS-OIG, with the assistance of the Illinois State Police Medicaid Fraud Control Unit. The government was represented in federal court by Assistant U.S. Attorney Jolm G. McKenzie.

The public is reminded that a complaint is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to indictment by a federal grand jury and, if indicted, to a fair trial at which the government has the burden of proving his guilt beyond a reasonable doubt.

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Waldyr Prado and Igor Cornelsen Charged with Insider Trading on @BurgerKing Stock

Preet Bharara, the United States Attorney for the Southern District of New York, and George Venizelos, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (FBI), announced today the unsealing of a criminal complaint in Manhattan federal court charging Waldyr Prado, a former financial adviser at a large U.S. brokerage firm, and Igor Cornelsen, a director of a British Virgin Islands Investment Company that he owns and operates, with using inside information to trade on Burger King securities in advance of Burger King’s September 2010 acquisition by 3G Capital Partners (3G), a New York and Brazil based private equity firm. Prado and Cornelsen are nationals and residents of Brazil, and they have not yet been arrested on these charges.

Manhattan U.S. Attorney Preet Bharara said, “As alleged, when Waldyr Prado and Igor Cornelsen traded around a ‘sandwich deal,’ the defendants knew they were committing insider trading. They were illegally profiting from material non-public information to which they were not entitled.”

Assistant Director in Charge George Venizelos said, “Trading on inside information negatively impacts individual investors, puts companies at risk and threatens the public’s faith in our financial markets. As alleged, Mr. Prado and Mr. Cornelsen put their faith in a ‘sandwich deal’ and bit off more than they could chew. The FBI will continue to investigate this type of illegal conduct and prosecute those who violate our laws.”

According to the complaint unsealed today in Manhattan federal court:

In about February 2010, 3G initiated discussions with Burger King about a potential acquisition. As part of these discussions, Burger King and 3G executed a confidentiality agreement in April 2010, pursuant to which all aspects of their negotiations and due diligence were non-public.

In about early March 2010, a principal of 3G (3G Principal-1) contacted an investor of the firm (Client-1) and advised that 3G was in negotiations to acquire Burger King. Client-1, who was also a brokerage client of Prado’s, signed a confidentiality agreement with 3G relating to the potential Burger King acquisition. This agreement permitted Client-1 to share information concerning the potential acquisition with Client-1’s financial adviser, i.e. Prado, in order to facilitate Client-1’s decision to invest in the specific 3G fund that would acquire Burger King (the 3G Fund).

From about March 2010 through the September 2, 2010 announcement that 3G would purchase Burger King for $4 billion in stock and the assumption of debt (the September 2 announcement), Client-1 received periodic updates about the general progress of the deal from 3G’s principals. During this period, Client-1 evaluated whether to liquidate personal holdings for a $50 million commitment to the 3G Fund or to obtain separate financing. Client-1 discussed this issue with Prado and, in so doing, confided that the financing was for a commitment to a 3G fund seeking to acquire Burger King. Based on their professional relationship, Client-1 believed that Prado would maintain the confidentiality of this information. Over the next several months, Client-1 and Client-1’s assistant spoke with Prado about the progress of the Burger King transaction.

Notwithstanding the duties of trust and confidence owed to his brokerage firm employer and Client-1, Prado misappropriated information learned from Client-1 for his own benefit and to purchase Burger King stock and options. For example, on May 17, 2010, after Prado met with Client-1 in Brazil and learned of the potential 3G-Burger King acquisition, Prado sent an e-mail to an acquaintance in the financial industry (Witness-1) stating that Prado was “in Brazil with information that cannot be sent by e-mail. You can’t miss it.” After sending this e-mail, Prado and Witness-1 spoke by telephone, and Prado told Witness-1 that 3G was going to acquire Burger King. From May 17, 2010 through September 1, 2010, Prado purchased Burger King stock and call options. On September 2, 2010, following the announcement of 3G’s acquisition, Prado sold his Burger King holdings for a total profit of over approximately $175,000.

On May 17, 2010, and minutes after Prado sent the e-mail to Witness-1 referenced above, Prado sent a similar e-mail to Cornelsen. The e-mail stated that Prado had “some info that I cannot say over the phone....You have to hear this.” Within minutes, and after the market closed, Cornelsen called Prado. The next day, Cornelsen began trading out-of-the-money Burger King call options. From May 18, 2010 through late August 2010, Cornelsen purchased short-expiration call options and had frequent contact with Prado. For example, on August 18, 2010, Cornelsen sent Prado an e-mail asking if “the sandwich deal going to happen,” to which Prado replied, “it’s going to happen.” On the same day, Cornelsen sent Prado another e-mail asking again whether the “sandwich deal” was going to happen, and Prado responded that it was a “sure thing.” After the September 2 announcement, Cornelsen sold his options for a total profit of approximately $1.68 million and a net profit (including expired July 2010 options) of approximately $1.4 million.

In July 2012, in connection with an insider trading investigation, the Securities and Exchange Commission (SEC) deposed Prado. In his deposition, Prado denied any advance knowledge of the Burger King acquisition. Approximately one month after his deposition, Prado fled to Brazil, from where he told his U.S.-based supervisor that he would not be returning to the United States because he believed that he was going to be charged with perjury and because Brazil did not have “an extradition policy.”

Prado, 43, of Porto Seguro, Brazil, and Cornelsen, 65, of São Paolo, Brazil, have been charged in the complaint with conspiracy to commit securities fraud and fraud in connection with a tender offer (count one), securities fraud (count two), and fraud in connection with a tender offer (count three). The securities fraud and fraud in connection with a tender offer charges each carry a maximum term of 20 years in prison, and the conspiracy charge carries a maximum term of five years in prison.

Mr. Bharara praised the investigative work of the FBI and also thanked the Securities and Exchange Commission, which has brought civil actions against the defendants.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which Mr. Bharara serves as a co-chair of the Securities and Commodities Fraud Working Group. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,900 mortgage fraud defendants. For more information on the task force, please visit www.stopfraud.gov.

This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys David I. Miller and Jason Cowley are in charge of the prosecution.

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