18 Californians Indicted on Marijuana and Mortgage Fraud Charges

Allison Tussey —  October 26, 2009 — 4 Comments

14 Bay Area residents have been indicted and charged with conspiracy to manufacture at least 1000 marijuana plants and manufacturing at least 1000 marijuana plants arising out of a wide-scale, sophisticated indoor marijuana cultivation operation in the Central Valley, California. The federal grand jury also returned a separate indictment charging five Bay Area residents with 26 counts of mail fraud in connection with mortgage fraud in several houses used in the scheme. (One defendant is charged in two indictments, making the total 18.)

Charged in the marijuana conspiracy primarily in the Stockton, California area:

Dickson Wing Kei Hung, 35, San Francisco;

Jiang Hong Liang, 28, San Francisco;

En Hao Lin, 23, San Francisco;

Rui Liu, 22, San Francisco. 

Charged in the marijuana conspiracy primarily in the Lathrop, California area:

Lup Park Li, 39, San Francisco;

Joyce Yi Ling Wang, 32, San Francisco;

Kong Yuan Li, 46, Castro Valley;

Khin “Kenny” Ung, 49, San Leandro;

Lian Z. Li, 41, Alameda;

Zhi Yong Lin, 50, San Francisco;

Charged in the marijuana conspiracy primarily in the Sacramento, Elk Grove, California area:

Can Hui Zhen, 32, San Francisco (charged in the 2006 indictment);

Simig Zhu, 32, San Francisco;

Dennis Hou Huan Yang, 35, San Francisco;

Guo “Ivan” Ying Lu, 29, Milpitas.

The following defendants are charged in the mortgage fraud scheme:

Dickson Wing Kei Hung, (also charged in the marijuana manufacturing)

Karen N. Lee, 29, San Francisco;

Ngai Chung Hung, 28, San Francisco;

Wayne Rong Zhi Feng, 29, Oakland;

Wing Chou Chan, 27, San Francisco.

The superseding indictments allege that the defendants operated sophisticated, large-scale, commercial marijuana gardens in approximately 50 single-family homes located in Sacramento, Elk Grove, Stockton, Lathrop, Tracy, and Modesto, California in 2006 and 2007. Approximately 24,500 marijuana plants were recovered by law enforcement officers during the execution of search warrants during the initial stages of the investigation.

The mail fraud indictment alleges that five defendants committed mortgage fraud between March and October 2006 in order to purchase 26 residences in Stockton that were to used to grow marijuana, were being converted or were awaiting conversion for indoor marijuana cultivation. As a result of the mortgage fraud scheme, various financial institutions and mortgage lenders issued approximately $15,000,000 in residential home loans with a resulting multimillion dollar loss.

These indictments are the product of a continuing investigation into indoor marijuana manufacturing that began in 2006. The original indictments, returned in 2006 and 2007 charged 17 individuals with conspiracy to manufacture at least 1000 marijuana plants and manufacturing at least 1000 marijuana plants. Of the 17 originally charged, 15 have pleaded guilty and two remain at large.

If convicted of conspiracy to manufacture marijuana and manufacturing marijuana counts, the defendants face a maximum possible sentence of life in prison and a mandatory minimum sentence of at least 10 years in prison. If convicted of the mail fraud counts, the defendants face a maximum possible sentence of 20 years in federal prison. The actual sentence, however, will be determined at the discretion of the court after consideration of the Federal Sentencing Guidelines, which take into account a number of variables and any applicable statutory sentencing factors.

The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

United States Attorney Lawrence G. Brown, DEA Assistant Special Agent in Charge Gordon Taylor, and IRS-Criminal Investigation Special Agent in Charge Scott O’Briant announced the Sacramento federal grand jury superseding indictments.

This case is the product of an extensive investigation by the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigations Division, Elk Grove Police Department, Stockton Police Department, and Lathrop Police Department. Significant assistance was also provided by Bay Area local, state, and federal law enforcement agencies and the U.S. Attorney’s Office for the Northern District of California.

“All of the individuals indicted in this case are from the Bay Area. They chose the Central Valley to perpetrate their scheme due to lower housing prices. They chose unwisely. What they failed to factor in were residents proud of their neighborhoods, skilled local police departments, and federal agencies that work seamlessly with their local and state counterparts,” stated U.S. Attorney Brown.

DEA Assistant Special Agent in Charge Taylor noted, “Operation Marvin Gardens is a crackdown on one of the largest, most sophisticated residential indoor marijuana growing organizations in the nation. This Bay area crime ring invaded our nice bedroom communities, set up marijuana factories, and ultimately impacted the real estate, mortgage and utility company industries. The success of this investigation would not have been possible without the cooperation of multiple law enforcement agencies.”

“These types of crimes create a significant loss of tax revenue, drive buyers into foreclosure, leave lenders burdened with bad loans and neighborhoods with abandoned and deteriorating properties. IRS-CI is committed to pursuing individuals who create such havoc,”stated IRS, Criminal investigation Special Agent in Charge O’Briant.

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4 responses to 18 Californians Indicted on Marijuana and Mortgage Fraud Charges

  1. This group also had a home in Red Bluff, CA. They stripped out all of the walls except for studs and put in a timer controller for water and light. The home was sold for $500+k and was foreclosed after the perps were arrested. The lender lost alot of money.

  2. A bunch of asian immigrants, most likely illegal immigrants, that have absolutely no respect for our laws but selfish enough to have plenty of respect for our money. Such nasty, greedy pigs! I say, put them all in the electric chair!

  3. great post, thank you

  4. You better not to take what the report says, I don’t. Most of time, it’s not the truth. I don’t know any of these people but I have a friend who had been charged years ago, after that experience, I no longer believe what I see on news or reports. You have to know the story behind the scene.
    Large banks provided all kinds of loan programs, why? they wanted to make money, but see what happened after the industry crashed, have anybody in Chase got charged? no. Have any big lender got charged? no, who has bad luck? brokers. This is not fair.

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