Modesto Man Pleads Guilty to Participating in Extensive Counterfeit Media Conspiracy

FRESNO, CA—Mariano Vega Hernandez, 25, of Modesto, pleaded guilty today to one count of conspiring to traffic in counterfeit media, United States Attorney Benjamin B. Wagner announced today.

According to court documents, between April 2011 and July 25, 2011, Hernandez and others manufactured copyright-infringing DVDs in a the garage in Modesto. Inside the garage were computers, disk replicating machines, two copy machines, scanners, approximately 50 printers for generating counterfeit graphics and cover art, blank disks, and several thousand counterfeit CDs and DVDs. Hernandez worked with others in a warehouse in Modesto to distribute the counterfeit DVDs. Hernandez was paid a monthly amount for his work.

Hernandez also operated vendor stands every week at the Modesto 7th Street Flea Market and sold counterfeit music CDs to the public and to other co-conspirators for resale. The total retail value of copyrighted media that was counterfeited in the conspiracy exceeded $2 million.

This case is the product of an extensive investigation by the Federal Bureau of Investigation and the Sacramento Valley Hi-Tech Crimes Task Force, with assistance from the Stanislaus County Sheriff’s Department. Assistant United States Attorney Henry Z. Carbajal III prosecuted the case.

Hernandez is scheduled to be sentenced by Chief United States District Judge Anthony W. Ishii on October 15, 2012. The maximum statutory penalty is five years’ imprisonment. The actual sentence, however, will 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.

Stockton Man Sentenced to Prison for Counterfeit Media Conspiracy

FRESNO—Antonio Hernandez Sanchez, 27, of Stockton, was sentenced today by Chief United States District Judge Anthony W. Ishii to one year and six months in prison for participating in a conspiracy to commit criminal copyright infringement and traffic in counterfeit labels and counterfeit documentation and packaging, United States Attorney Benjamin B. Wagner announced today.

According to court documents, between June 2011 and July 25, 2011, Sanchez sold counterfeit music CDs at the Modesto 7th Street flea market. The counterfeit music CDs were supplied to him through a warehouse in Modesto. On July 25, 2011, law enforcement officers seized approximately 6,512 music CDs from Sanchez. Sanchez pleaded guilty to the charges on March 12, 2012.

This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento Valley Hi-Tech Crimes Task Force, with assistance from the Stanislaus County Sheriff’s Department. Assistant United States Attorney Henry Z. Carbajal, III prosecuted the case.

Modesto Connection in Two Guilty Pleas in Separate Counterfeit Media Cases

FRESNO, CA—United States Attorney Benjamin B. Wagner announced that Victor Puga Quiroz, 28, of Modesto, and Martin Munoz Peralta, 40, of San Jose, pleaded guilty today to conspiring to commit criminal copyright infringement and trafficking in counterfeit labels, illicit labels, and counterfeit documentation and packaging.

1:11-cr-00016-AWI Quiroz

According to court documents, between January 2010 and November 2010, Quiroz procured several thousand counterfeit music CDs and motion picture DVDs on a regular basis from a warehouse operating in San Jose. Quiroz, along with co-conspirators, then sold the counterfeit music CDs and motion picture DVDs to the public at the Galt Market, a flea market in Galt, and at other flea markets. On November 16, 2010, more than 16,000 copyright-infringing DVDs and more than 70,000 copyright-infringing music CDs were seized from Quiroz’s residences and vehicle.

Quiroz was indicted on January 13, 2011. The status of the other defendants in this case are as follows: Jose Alfredo Colorado-Munoz, Luis Coahuilas Puntos, and Abel Fabela Zaragoza are scheduled to appear in court on May 7, 2012. The charges against them are only allegations and they are presumed innocent until and unless proven guilty beyond a reasonable doubt. Eleazar Ortiz Gomez pleaded guilty, and on January 23, 2012 he was sentenced to three years and six months in custody and ordered to pay $265,066 in restitution. Carlos Benavidez Tejeda pleaded guilty and was sentenced on October 3, 2011 to 10 months in custody and ordered to pay $10,949 in restitution. Assistant United States Attorneys Henry Z. Carbajal III and Brian W. Enos are prosecuting the case.

1:11-cr-00299 AWI Peralta

According to court documents in this case, between April 2011 and July 25, 2011, Peralta sold counterfeit music CDs and movie DVDs at the Modesto 7th Street flea market, a flea market in Orland, and elsewhere. The counterfeit media was supplied to Peralta through a counterfeit media warehouse located in Modesto. On July 25, 2011, law enforcement officers seized approximately 832 counterfeit motion picture DVDs and 8,436 counterfeit music CDs from Peralta’s possession. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.

Peralta was indicted on September 8, 2011. The status of the other defendants in this case are as follows: Roman Santana pleaded guilty and on April 23, 2012, was sentenced to one year in prison. Edgar Alonso Bautista Arazate and Antonio Hernandez Sanchez pleaded guilty on March 12, 2012. They are scheduled to be sentenced on May 21, 2012. Charges are pending against Mariano Vega Hernandez, Vicenta Munoz Peralta, and Leonel Martinez Caballero. Their next court date is May 14, 2012. The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Both cases are the product of investigations by the FBI and the Sacramento Valley Hi-Tech Crimes Task Force, with assistance from the Stanislaus County Sheriff’s Department.

Quiroz and Peralta are scheduled to be sentenced by Chief United States District Judge Anthony W. Ishii on July 9, 2012. They face a maximum statutory penalty of five years in prison. The actual sentences, however, will 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.

Linden Man Sentenced to 21 Months in Prison in Conspiracy to Obstruct Justice

FRESNO, CA—United States Attorney Benjamin B. Wagner announced that Stephen J. Johnson, 62, of Linden, was sentenced today by United States District Judge Oliver W. Wanger to 21 months in prison for conspiring to obstruct justice, four counts of perjury before a federal grand jury, and two counts of making false statements to the FBI.

According to court documents, Johnson, a law enforcement dog trainer in the Central Valley; along with Bob Holloway (former owner of Road Dog Cycle in Denair); retired Stanislaus County Deputy Sheriff Dave Swanson; and Gary Ermoian, a private investigator from Stanislaus County, were charged with conspiring to obstruct an FBI investigation into Bob Holloway and others. Johnson was also charged with making false statements to the FBI and perjury before a federal grand jury. In August 2010, a federal jury found Ermoian and Johnson guilty on all charges, but acquitted Swanson. Holloway pleaded guilty to racketeering charges before trial.

Evidence presented at trial revealed that in September 2007, Ermoian, acting on confidential law enforcement information received from Swanson, alerted Holloway to the fact that search warrants may be executed at Holloway’s residence and business. Ermoian and Holloway discussed how to hide evidence from law enforcement, and, along with Johnson, discussed possible law enforcement surveillance activity at Road Dog Cycle.

When interviewed by the FBI in 2008, Johnson denied assisting Holloway in hiding evidence and informing Holloway about law enforcement surveillance. Johnson then testified under oath before a federal grand jury later in 2008 and further denied assisting Holloway.

This case was the product of an investigation by the Central Valley Gang Impact Task Force, composed of state and federal law enforcement agencies, including the Modesto Police Department, the Stanislaus County Sheriff’s Department, the Stanislaus County District Attorney’s Office, and the FBI. Assistant United States Attorneys Mark E. Cullers and Laurel J. Montoya prosecuted the case.

Stanislaus County Private Investigator Sentenced for Conspiring to Obstruct Justice

FRESNO, CA—United States Attorney Benjamin B. Wagner announced that Gary L. Ermoian, 52, of Modesto, was sentenced today to six months in prison and six months in a community corrections center for conspiring to obstruct justice. Ermoian, a private investigator in Stanislaus County, was charged with conspiring to obstruct an FBI investigation into Bob Holloway and others. Trial was held in August 2010, and Ermoian and co-defendant Steve Johnson were convicted. Holloway pleaded guilty to racketeering charges prior to trial.

As the wiretap evidence introduce at trial revealed, in September 2007, Ermoian, acting on confidential law enforcement information received from a retired Stanislaus County Deputy Sheriff, alerted Holloway to the fact that search warrants might be executed at Holloway’s residence and business. Thereafter, Ermoian and Holloway discussed how to hide evidence from law enforcement, and Ermoian and Johnson discussed possible law enforcement surveillance activity at Road Dog Cycle (Holloway’s business).

Johnson’s sentencing is set for May 16, 2011, before Judge Oliver W. Wanger.

This case was the product of an extensive investigation by the Central Valley Gang Impact Task Force, a task force composed of state and federal law enforcement agencies, including the FBI, the Modesto Police Department, the Stanislaus County Sheriff’s Department, and the Stanislaus County District Attorney’s Office. Assistant United States Attorneys Mark E. Cullers and Laurel J. Montoya prosecuted the case.