Visalia Criminal Law Blog

A 25-year-old man has admitted to using an unlicensed Bitcoin kiosk to launder money. Federal prosecutors say the Westwood resident exchanged approximately $25 million in U.S. currency and Bitcoin between May 2015 and October 2017. His list of clients is said to have included criminal organizations selling narcotics and other illegal items on what is known as the dark web. The man is expected to make his first court appearance in September in the U.S. District Court for the Central District of California.

The man entered guilty pleas to felony counts of distributing methamphetamine, money laundering, failing to implement an adequate anti-money laundering program and operating an unlicensed money exchange business as part of an agreement negotiated with U.S. attorneys. The man is alleged to have concealed his activities by setting up bank accounts in the name of fake businesses. His customers reportedly exchanged Bitcoin for U.S. currency and vice versa using a kiosk that was not equipped with a camera and did not verify identities.

A 48-year-old California man suspected of distributing drugs in Ventura County was taken into custody on Aug. 14 by deputies from the Ventura County Sheriff's Office Narcotics Unit. The Los Angeles County resident has been charged with felony counts of conspiracy, marijuana possession, cocaine possession and possession of a controlled substance with the intent to distribute. He is being held at the Ventura County Pre-trial Detention Facility, and his bail has been set at $300,000.

The investigation that led to the man's arrest began when investigators at the county jail turned over information about a suspected drug distribution network to the VCSO. Initial accounts do not make clear how the investigators acquired this information. The man was quickly identified as a suspect according to media accounts, but initial reports do not reveal what alerted deputies to his alleged involvement in the scheme. After taking the man into custody without incident, deputies obtained search warrants for two addresses in Littlerock he was associated with.

The recreational use of marijuana is now legal in California, but criminal organizations in the state still cultivate large amounts of the drug. One such operation was raided on July 31 in Plumas County. During the operation, one man was taken into custody and approximately 11,000 marijuana plants were destroyed. A Plumas County Sheriff's Office representative said the facility bore all the hallmarks of a large-scale narcotics operation run by a Mexican drug cartel.

The drug raid was carried out by members of the PCSO SWAT team supported by agents from the California Department of Fish and Wildlife and the U.S. Forest Service. Individuals representing the Campaign Against Marijuana Planting in Plumas County were also on hand. Local farmers often assist law enforcement in these operations as illegal marijuana growing operations deprive them of water and pollute the land.

A 64-year-old California financial advisor was sentenced to 10 years and four months in prison on July 18 for embezzling funds from 12 people. They were all workers' compensation funds for injured workers.

Legally, settlements related to workers' compensation are supposed to be safeguarded for future medical expenses. However, the financial advisor convinced his clients to deposit their checks with him and then spent them on his own personal and business expenses. In 2017, he was charged for embezzling from two people, but other victims continued to come forward. In all, the insurance department says he took $995,118. Although ordered by the judge to repay it, there was no money in the man's bank accounts at the time he was taken into custody. Therefore, the victims might never see their money.