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Burning tree in South L.A. leads firefighters to a grim discovery

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A person was found dead early Thursday when firefighters were called to put out a tree fire behind an apartment building in South Los Angeles.

Firefighters responded to the blaze on E. Vernon Avenue shortly after 5 a.m., where they found the person’s body, according to the Los Angeles Fire Department. The fire started in an alley behind a building surrounded by what appeared to be discarded furniture and boxes, according to video from the scene.

Los Angeles Police Officer Kevin Terzes said the death is being investigated as “suspicious” and authorities have not yet determined how the individual died. The person has not been identified.

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U.S. attorney files charges against Phillips 66 refinery

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The U.S. attorney’s office in Los Angeles has filed felony criminal charges against Phillips 66, accusing the company’s Carson refinery of illicitly dumping oil and grease into the county sewer system.

In an announcement Thursday, the Justice Department said that a federal grand jury had returned a six-count indictment against the Houston-based energy business for consciously violating the Clean Water Act and then failing to report its actions to authorities.

Phillips 66 is charged with two misdemeanor counts of negligently violating the Clean Water Act and four felony counts of knowingly violating the Clean Water Act.

Phillips 66 faces up to five years’ probation for each count and $2.4 million in fines. Company officials are expected to appear in United States District Court in downtown Los Angeles for an arraignment within a matter of weeks.

“With these charges, we are sending a message corporations and individuals need to take their duty to protect the environment seriously,” said United States Atty. Martin Estrada. “We also send a message that no one is above the law. When our environment is harmed, this hurts our community. People deserve clean water. Consumers deserve to have their natural resources protected. The public deserves to have big companies that make big profits follow the law.”

Phillips 66 officials acknowledged the charges and said the company was prepared to make its case.

“Phillips 66 will continue its cooperation with the U.S. Attorney’s office and is prepared to present its case in these matters in court,” a Phillips 66 spokesperson said in a statement. “The company remains committed to operating safely and protecting the health and safety of our employees and the communities where we operate.”

The criminal charges mark a turbulent exit to Phillips 66’s refinery operations in Southern California. Last month, the company announced it would shut down the sprawling 650-acre refinery complex in Carson and Wilmington, which produces about 8% of California’s gasoline.

The twin refinery facilities, about five miles apart and linked by pipeline, have operated for more than a century under Phillips 66 and several other owners. They have been cited repeatedly by local air regulators for releasing toxic chemicals, including two large fires in 2019 that resulted in plumes of smoke and hazardous chemicals drifting into nearby communities.

In those 2019 fires, Regulators found that refinery workers had repaired a malfunctioning pump but failed to inspect the equipment after the repairs. Phillips 66 was later cited by the U.S. Environmental Protection Agency.

The new federal charges are tied to two massive releases of industrial wastewater from the Carson refinery four years ago.

In the first incident, in November 2020, the refinery discharged 310,000 gallons of contaminated wastewater, which contained more than 64,000 pounds of oil and grease, into the sewer system. The slurry of wastewater contained more than 300 times the allowable levels of oil and grease, as the facility’s treatment and practices were inadequate, according to the U.S. attorney’s office.

The contaminated wastewater surprised workers at the Los Angeles County Sanitation Districts, the public agency that handles and treats wastewater. A Phillips 66 manager told wastewater authorities the company would “retrain operations personnel” on how to properly respond to such situations, including notifying the sanitary district should it happen again.

However, about three months after the first spill, in February 2021, the refinery unleashed an even larger load of contaminated wastewater. The plant dispensed 480,000 gallons of industrial wastewater, including 33,700 pounds of oil and grease.

In both cases, Phillips 66 failed to inform the Los Angeles County Sanitation Districts, according to the U.S. attorney’s office. The sanitation agency’s wastewater treatment plant in Carson — one of the largest such facilities in the world — managed to collect the contaminated water and prevent it from reaching the ocean. But the massive deluge of oil and grease presented a risk to workers at the plant as it could have resulted in a buildup of flammable methane and exploded.

“This oil and grease is a dangerous, flammable substance that creates a hazard to the plant and all the staff working at the plant,” Estrada said.

The U.S. attorney’s office is working to determine whether the treatment plant sustained any lasting damage. If so, Estrada vowed to recoup restitution to make repairs.

“At this point, we don’t have an estimate,” Estrada said. “But we will work with the county, work with a lot of treatment facilities to determine what if any damage occurred, and to do everything we can to make sure they’re made whole.”

If convicted of the charges, a judge could require Phillips 66 to adhere to a slate of probationary conditions. And although the company plans to close its Southern California refinery plants soon, the conditions would still need to be followed by the company writ-large, Estrada said.

“We’re confident the facts that we’ve gathered will show that Phillips 66 is guilty of the felony investigative violations, but they’re presumed innocent until proven guilty,” Estrada said. Any convictions would “be on the company as a whole, not on any one facility in Wilmington or Carson.”

The case is one of the most noteworthy environmentally related criminal prosecutions by the U.S. attorney’s office in Los Angeles in recent memory. The office previously brought
a felony Clean Water Act case against a Texaco subsidiary in 2001 for discharging oil-laden wastewater into Dominguez Channel. That company pleaded guilty and was fined $4 million.

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Can deputies be forced to show investigators their tattoos? Not yet, says appeals court

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A California appeals court said Wednesday that the county watchdog cannot force Los Angeles County sheriff’s deputies to reveal suspected deputy gang tattoos or to answer questions about the inked groups – at least not until the county has bargained with the deputies’ labor unions.

In a 28-page opinion, the Second Division of the California Court of Appeals said the public interest in “ridding law enforcement agencies of deputy gangs is substantial,” but that there was not “any evidence” to suggest labor negotiations would take so long as to meaningfully delay an investigation into the groups.

The legal dispute that led to this week’s ruling started last year, after the county Office of Inspector General demanded that dozens of deputies show their tattoos and name other suspected deputy gang members. Employee unions promptly struck back with a May 2023 lawsuit as well as a formal labor complaint.

The union representing rank-and-file deputies — the Assn. for Los Angeles Deputy Sheriffs — lauded Wednesday’s decision.

“As other courts and the county’s labor board have previously ruled, the Court of Appeals today found that the inspector general is not above the law,” union President Richard Pippin told The Times. “All ALADS wanted was a voice in the process, to sit down with the county and negotiate over what the rules would be for investigations conducted by the inspector general.”

Inspector General Max Huntsman also framed the ruling as a positive.

“The court found that ‘the public’s interest in ridding law enforcement of gangs is ‘substantial’ and that an inspector general’s decision to investigate is nonnegotiable,” he told The Times late Wednesday. “As the court found, the OIG must consult with unions on the effects of an investigation but may reject their proposals. My office’s investigations will continue after the ‘expeditious’ bargaining described by the court.”

The Sheriff’s Department said in a statement that the ruling wouldn’t affect its ongoing efforts to investigate “allegations of law enforcement gang activity” and that officials “encourage” deputies to “engage with” oversight bodies.

It is not clear whether the county intends to appeal the decision to the California Supreme Court, and the county deferred comment to the Sheriff’s Department.

The department has long faced allegations about secretive deputy groups running amok in certain stations and jails, controlling command staff and promoting a culture of violence. A Loyola Marymount University report released in 2021 identified at least 18 such groups that have existed over the last five decades, including one known as the Executioners and another known as the Banditos.

Members of the former are alleged to sport tattoos of a skull with Nazi imagery and an AK-47, while members of the latter are allegedly known for their matching tattoos of a skeleton outfitted with a sombrero, bandolier and pistol.

In January 2020, as part of an effort to improve oversight of the Sheriff’s Department, the county adopted an ordinance that gave subpoena power to certain oversight officials. But a few months later, the deputies union filed a labor complaint arguing that the county needed to bargain over the effects of the new ordinance before forcing deputies to comply with it.

In late 2022, the Los Angeles County Employee Relations Commission sided with the union, saying that deputies didn’t have to obey subpoenas served under the new ordinance until the bargaining process was over.

But then in May 2023 — before bargaining concluded — Huntsman’s office sent letters to 35 deputies suspected of being members of either the Executioners or the Banditos.

The OIG letters ordered the deputies — whose names have not been publicly released — to show their tattoos, provide names of any other deputies sporting similar ink and answer questions about whether they’d ever been invited to join a group related to their tattoos. Because the letters weren’t official subpoenas, it wasn’t clear whether deputies would actually face any consequences for ignoring them.

But less than a week later, Sheriff Robert Luna sent a department-wide email directing staff to comply with the OIG request. Any employees who obstructed or delayed an investigation, the email said, could be disciplined or fired under county policies.

The unions took issue with that, filing the labor complaint and lawsuit that same month, accusing the county of violating deputies’ 4th and 5th Amendment rights as well as their privacy rights outlined in the California Constitution. The union also argued that planned interviews constituted “significant and adverse changes to the terms and conditions of employment” and thus required bargaining.

Ultimately, the lower court rejected most of the union’s issues but sided with them on the labor concerns, agreeing that the forced interviews were new conditions of employment that needed to be bargained and writing that there was “no compelling need for immediate investigation” before that.

The county appealed the decision in September, and the appeals court issued its ruling this week.

In the interim, the two sides conferred and came to an agreement on a different policy — but one that also mentions the need to cooperate with oversight investigations. In September, the department rolled out its long-awaited policy banning deputy gangs, which included a paragraph noting that the department would cooperate with inspector general investigations.

“Employees are required to participate in these investigations,” the policy says, “answer questions, and do so honestly.” It’s not clear how that policy could affect the ongoing dispute over whether deputies must reveal their tattoos.

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South Pasadena joyride ends in reckless evading for 13-year-old

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He might not be old enough to play the game Grand Theft Auto V, but that didn’t stop a 13-year-old from taking his parent’s car and leading South Pasadena police on a brief chase before pulling over, authorities said.

According to police, the driver of an older-model blue Toyota Corolla committed a pair of moving violations around 2:55 a.m. Tuesday, triggering a traffic stop.

But instead of stopping, police say, the driver raced away from the officer, hitting speeds of 65 mph.

The car eventually stopped in Highland Park, about 1½ miles from where the chase began.

Officers discovered the driver was a teenager who had taken his parent’s vehicle without permission. He also had a 13-year-old passenger with him.

Police contacted the parents of both teens, who picked up their children.

The driver and one of his parents were cited for reckless evading.

They have an upcoming court appearance with the Los Angeles County Probation Citation Diversion Program.

South Pasadena police did not immediately respond to a request for comment.

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Human skull and bones wash ashore in Palos Verdes Estates

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Days after a human skull and bones washed ashore on a beach in Palos Verdes Estates, authorities are still trying to identify the decedent and the cause of death, officials said.

A passerby found the skull and a bone in the low-tide shoreline at Rat Beach in the 300 block of Paseo Del Mar sometime around 3 p.m. on Saturday, the Palos Verdes Estates Police Department announced in a news release. When police arrived on scene, they found more bones in the area and the Los Angeles County Medical Examiner’s office was called to assist in the investigation.

The Medical Examiner’s office confirmed the bones were human but have not determined the identity of the person or cause of death, according to acting Cpt. Aaron Belda with the Palos Verdes Estates police. There is no additional information regarding the discovery, but Belda added there is no threat to the general public.

Officials are not ruling out homicide, but the investigation is ongoing.

“The course of the investigation could change depending on the coroner’s report,” Belda said Thursday.

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LAPD probe finds no truth to claims officers cheated to get promoted

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Allegations of cheating by officers on a promotional exam that swept through the Los Angeles Police Department over the summer were found to be false after an internal investigation, officials said this week.

As first reported by The Times in September, the department probed claims that an LAPD officer recorded questions from a sergeant’s promotional exam using a pair of camera-equipped smart glasses, then passed the information to others taking the test.

The story took on several lives inside the department, according to multiple sources who requested anonymity in order to discuss an internal investigation. In one account, the offending officer was a female officer who supposedly sold the test questions to a group of SWAT team members. Another version pointed the finger at a male officer working out of the Southeast Division.

After the department’s press office began fielding questions, then-interim Chief Dominic Choi raised the matter at a senior staff meeting in September. He stopped short of dismissing the allegations outright, but told The Times a few days later there was no evidence to support the claims.

Deputy chief Michael Rimkunas said the department’s probe is now wrapping up, and investigators have determined no cheating occurred.

“The case is all but closed,” said Rimkunas, who oversees the Professional Standards Bureau, which includes internal affairs.

He would not go into detail about how investigators reached their conclusion, and referred further questions about the exam to the Personnel Department, which has ignored numerous inquiries.

LAPD officers seeking a promotion to sergeant must take an exam, which isn’t offered every year. This year it was offered online, with some officers taking the test before others. Candidates also face oral interviews before being ranked based on their scores.

For weeks, gossip among the rank-and-file and LAPD retirees suggested some officers had unfairly obtained questions beforehand, allowing them to score higher on the test. Suspicions were reportedly aroused when a test-taker was seen repeatedly fidgeting with their glasses frames, according to one source briefed on the probe.

The department didn’t launch its internal investigation until weeks after the exams had been administered, and did so only after receiving “actionable information” from the Personnel Department, which administers the test, according to Rimkunas.

The ensuing probe involved search warrants being served on lockers at the Southeast station and at a residence in Minnesota, from where one officer had taken the test remotely. A pair of glasses was found at one of the locations, but they lacked any recording capabilities, according to two of the sources familiar with the case.

The inspector general’s office, which investigates allegations made against the chief of police and monitors other department complaint investigations, confirmed that it received an email urging them to investigate test cheating.

“Consistent with regular protocols, the OIG is responsible for monitoring all Department investigations such that they are fair, complete, and impartial,” the office said in an emailed statement. “The OIG is also regularly kept abreast of any developments relating to such critical investigations.”

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‘Doomsday fish’ washed ashore in California, but what does that mean?

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If one oarfish landing on a beach is a sign of a disaster to come, how bad will it be if three wash up in quick succession?

A silvery 10-foot-long creature, the oarfish has fueled fisherman’s tales of sea serpents — and in some cultures has been a portent of natural disasters.

It’s rare to see an oarfish up close in California; only 22 have washed ashore since 1901, according to UC San Diego’s Scripps Institution of Oceanography. But in the last three months, three of them have surfaced on Southern California beaches.

The latest was on Nov. 6, when an oarfish was discovered at Grandview Beach by Alison Laferriere, a doctoral candidate at Scripps Institution of Oceanography. The other two beached in La Jolla and Huntington Beach.

The last time a series of oarfish came ashore in California and other parts of the world was over several months in 2013 and 2014. Misty Paig-Tran, associate professor of biological science at Cal State Fullerton, studied four of them.

Every time an oarfish makes an appearance on the sand, it’s a spectacle for scientists as well as the general public for several reasons.

To start with, nobody is expecting a behemoth that’s up to 25 feet long to come so close to the California coast, said Paig-Tran.

“What’s special about them is that when they’re freshly dead or just about to die and you look at their skin, it actually [looks] like a mirror,” she said.

Its length combines with its silver skin and bright red scarlet fins to give it a mythical look.

Since the 1500s, sailors have told of sea monsters as long as their ships, and have even drafted maps that warned of areas in the ocean where such creatures resided. Their depictions appear to describe oarfish.

Oarfish generally live in the upper layers of the ocean depths, from about 300 feet to almost 3,000 feet underwater. Scientists call this section of the ocean the “twilight zone” because the fish that inhabit it are basically living in darkness with only a small glimpse of light, Paig-Tran said.

The twilight zone is too deep for divers to reach and explore, adding to the allure of this species.

If an oarfish happens to swim up to the ocean’s surface, a sailor would see a long slithering creature with spiky protrusions on its head and could believe it was a sea monster, Paig-Tran said.

For the record:

3:17 p.m. Nov. 21, 2024An earlier version of this article said oarfish are bottom feeders. They are filter feeders.

It’s a jarring sight, but oarfish are anything but dangerous. Oarfish are filter feeders, meaning they primarily feed on krill (a small shrimp-like creature) using powerful mouths shaped liked vacuum nozzles, according to Scripps.

An oarfish’s body is extremely delicate, so much so that if you pick one up it could break in half because of its jelly-like bones, Paig-Tran said.

Another factor that adds to the mystique of this creature is the lack of knowledge about its history and daily life, including how it mates, when it lays eggs, what its movement patterns are and how often it feeds.

Scientists are able to study the creatures only when they wash up on a beach.

“When a body comes up, we can do our best to look to the biology and the physiology and try to make our best guesses, but we don’t get to see it living in its natural environment,” Paig-Tran said. “It’s a completely open-ended question of what’s going on with these fishes.”

Why are dead oarfish washing ashore?

Scientists don’t know why these oarfish have died and washed ashore.

The latest oarfish spotted in Encinitas was recovered by a team from the National Oceanic and Atmospheric Administration Fisheries and transported to Southwest Fisheries Science Center, where it will undergo a necropsy so researchers can learn more about the biology, anatomy, genomics and life history of oarfish, according to Scripps.

The deaths of the three fish that have surfaced “may have to do with changes in ocean conditions and increased numbers of oarfish off our coast,” said Ben Frable, manager of Scripps’ marine vertebrate collection.

“Sometimes it may be linked to broader shifts, such as the El Niño and La Niña cycle, but this is not always the case,” he said.

There was a weak El Niño earlier this year, and this wash-up coincided with the recent red tide and Santa Ana winds last week. But many other factors could have played a role in these strandings, Frable added.

Another possible explanation is that the oarfish got stuck in a current and couldn’t go back down into deeper waters.

Oarfish aren’t strong swimmers. They primarily rely on their dorsal fin, whereas strong swimmers use their caudal fin, or back tail, Paig-Tran said.

An oarfish that gets caught in a current and is taken up to the surface doesn’t have a good way to get back down.

“If you are a fish that lives in the deep and you got stuck on the surface, you’re kind of hosed,” she said.

Where did the ‘doomsday’ name come from?

Oarfish have been dubbed “doomsday” fish because some cultures consider it a bad sign when they appear. The moniker is derived from a manipulation of Japanese folklore that became popular following the 2011 earthquake and tsunami in eastern Japan that led to the Fukushima nuclear plant meltdown, Frable said.

“In the two years prior to the disaster, about a dozen oarfish washed up in Japan, most hundreds of miles away from this area,” he said.

In the aftermath of the disaster, people latched onto these strandings as an omen.

This prompted researchers in Japan in 2019 to test whether oarfish and other deep-sea animal strandings were correlated with earthquakes, tsunamis and other factors.

“They found no correlation whatsoever,” Frable said. “But the name is too evocative to disappear.”

On the other hand, Paig-Tran said there could be some truth to the myth, because when an earthquake occurs, it releases pressure that can change a current underwater.

“When the pressure gets released, it changes the currents that [the fish are] living in, and it brings them up to the surface with this kind of big bolus of air and gasses and whatever the turbulence [is] from this earthquake,” she said.

So, are the oarfish that surfaced in Southern California a harbinger of a massive earthquake? According to Paig-Tran: probably not.

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California barber charged with sexually assaulting intoxicated men

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A Bay Area barber has been charged with sexually assaulting at least two men but is suspected of assaulting as many as 20 who were severely intoxicated, according to authorities.

Police say evidence shows Franklin Enrique Sarceno Orla, a 34-year-old Mountain View resident, may have assaulted 20 different men who were intoxicated or passed out at the time, according a Santa Clara County District Attorney’s Office news release.

Franklin Enrique Sarceno Orla

Police are searching for Franklin Enrique Sarceno Orl, who is charged with sexually assaulting two men.

(Mountain View Police Department)

One assault involved a kidnapping, authorities said, alleging that Sarceno Orla videotaped the assaults.

Sarceno Orla has fled, authorities said, and law enforcement is seeking information about his whereabouts. If convicted, he could face life in prison.

“There was a sexual predator in our community, and we thank the Mountain View Police Department for identifying him,” Santa Clara Dist. Atty. Jeff Rosen said in a release. “With the help of courageous victims, investigators, and the public we will soon have him in custody to keep him from ever hurting anyone again.”

The Mountain View Police Department launched an investigation in July after speaking with a man who said he woke up injured after having drinks with Sarceno Orla, officials said. Another victim said that Sarceno Orla was his barber and he passed out after having beers with him.

Sarceno Orla was arrested on suspicion of sexual assault in August; he posted $250,000 bail after his arrest, authorities said, and his whereabouts are now unknown.

According to the investigation’s findings, the assaults date back to 2018, and in those incidents the victims were intoxicated at the time. Police are still working on identifying more alleged victims.

Anyone who has been victimized has been asked to contact the Mountain View Police Department at (650) 903-6618.

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Cartel leader’s son-in-law faked death to live in California, feds say

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When a man who called himself Luis Miguel Martinez moved into a $1.2-million home in an exclusive Riverside neighborhood in 2023, he brought standard luxuries.

Parked outside were luxury cars, including a BMW and another car with Mexican license plates.

But after his arrest this week by federal authorities, neighbors learned that Martinez was allegedly an alias. His real name, investigators say, is Cristian Fernando Gutierrez-Ochoa, and he is a son-in-law of the reputed Mexican drug lord known as El Mencho.

Gutierrez-Ochoa, a high-ranking member of the Jalisco New Generation cartel, or CJNG, went missing in Mexico in December 2023, reportedly murdered for lying to his wife’s father, Nemesio Oseguera Cervantes.

Federal authorities arrested the purported dead man in Riverside on Tuesday, charging Gutierrez-Ochoa with international drug trafficking and money laundering offenses.

Court records do not indicate whether he has retained a lawyer or entered a plea in response to the charges.

“The Jalisco Cartel — one of the world’s most violent and prolific drug trafficking organizations — is weaker today because of the tenacious efforts of law enforcement to track down and arrest a cartel leader who allegedly faked his own death and assumed a false identity to evade justice and live a life of luxury in California,” Deputy Atty. Gen. Lisa Monaco said in a statement.

Gutierrez-Ochoa, 37, allegedly began working for the CJNG around 2014, and later married El Mencho’s youngest daughter, identified in court records as a U.S. citizen who owns a coffee shop in Riverside.

According to court documents, Gutierrez-Ochoa coordinated shipments of approximately 40 metric tons of meth and 2,000 kilograms of cocaine in Mexico, all destined for the Unites States.

He also used violence to further drug trafficking and money laundering activities, prosecutors charge.

Gutierrez-Ochoa allegedly kidnapped two members of the Mexican Navy around November 2021 in an attempt to secure the release of his mother-in-law, El Mencho’s wife, who had been arrested by Mexican authorities.

Based on an arrest warrant tied to that kidnapping, the Mexican government in September 2022 issued an Interpol Red Notice seeking the detention of Gutierrez-Ochoa.

A DEA confidential source later reported that Gutierrez-Ochoa had gone missing, murdered by his father-in-law. Authorities suspect El Mencho assisted Gutierrez-Ochoa by spreading the rumor in the scheme to fake his own death.

The Justice Department previously returned an indictment against El Mencho in April 2022, charging him with leading a continuing criminal enterprise to manufacture and distribute fentanyl for importation into the U.S., according to the Department of Justice. There’s a reward of up to $10 million for information leading to his arrest. The cartel leader remains a fugitive.

The same year of Gutierrez-Ochoa’s disapperance, a company named Pasion Azul, a purported tequila manufacturer and suspected money laundering front for the cartel, paid $1.2 million in cash for a luxury residence in an exclusive neighborhood of Riverside, according to an affidavit from Kyle Mori of the DEA’s Los Angeles office.

Mori said he interviewed the escrow agent, real estate agent and seller of the home, who called the circumstances of the purchase “suspicious.” The prior owner of the house said she believed the purchasers were “drug dealers” from Mexico.

In October 2024, the DEA in L.A. learned of an Interpol notice seeking the detention of Gutierrez-Ochoa. The Department of Homeland Security compared known photographs of Gutierrez-Ochoa and found they matched that of Martinez, according to the affidavit.

The department utilized facial recognition software and found that Gutierrez-Ochoa and Martinez were the same person, Mori stated.

As DEA agents attempted to conduct surveillance of Gutierrez-Ochoa, Mori said, he began employing counter-surveillance techniques and later began following an agent. Authorities arrested him Nov. 19.

If convicted as charged, Gutierrez-Ochoa faces a minimum of 10 years in prison and a maximum penalty of life in prison on the drug distribution conspiracy charge.

Prior to Gutierrez-Ochoa there has been a long history of Mexican kingpins faking death to avoid capture, with El Mencho himself rumored killed on several occasions. In 2020, amid reports that the CJNG boss had died or was suffering chronic kidney problems, Mexico’s president and the DEA spoke out publicly to say he was still alive and on the run.

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California voters approve measure aimed at restricting AIDS Healthcare Foundation spending

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California voters have approved Proposition 34, a measure from an apartment trade group that aimed to restrict spending by the AIDS Healthcare Foundation, which has bankrolled several rent control initiatives and criticized the measure as unconstitutional revenge.

The Associated Press called the initiative Wednesday evening. According to the California Secretary of State, the measure is ahead 50.8% to 49.2%.

As written, Proposition 34 applies to healthcare providers who have spent more than $100 million in any 10-year period on things besides direct patient care and have run multifamily housing with more than 500 “high-severity health and safety violations.”

If a healthcare provider meets that standard they would be required to spend 98% of their revenues from a federal prescription drug program on direct patient care.

The measure was sponsored by the California Apartment Assn., whose campaign committee said the new rules could apply to multiple organizations and noted the initiative’s language did not name any specific group.

In the weeks before the election, much of the advertising in favor similarly did not name a specific healthcare provider, but emphasized Proposition 34 would save taxpayers money while also increasing spending on patient care.

However, the apartment association did single out the AIDS Healthcare Foundation by name as a target during the campaign and no other health organization has such a well-publicized history of operating housing with health and safety complaints and spending money on things other than direct patient care.

The AIDS Healthcare Foundation has bankrolled three initiatives to dramatically expand rent control in recent years, including Proposition 33 on this year’s ballot.

All of those measures were defeated, but forced the real estate industry to spend hundreds of millions of dollars in opposition.

The AIDS Healthcare Foundation, or AHF, earns most its revenue off the federal drug program at question. The program, known as 340B, requires drug makers to sell their drugs at discounts to certain healthcare providers, who then turn around and charge health insurance companies more for the drugs.

According to California’s nonpartisan Legislative Analyst’s Office, the program is supposed to enable providers like AHF to serve more low-income patients, but the law “does not directly restrict how providers spend their revenue from federal drug discounts.”

Proposition 34’s restrictions could hamstring AHF’s ability to fund additional rent control measures or operate apartments it owns in and around Skid Row, which have been beset with vermin infestations, elevator failures and other problems, according to a Times investigation published last fall.

In a statement, AHF president Michael Weinstein said that the organization would continue to fight for renters.

“The results of Propositions 33 and 34 prove only one thing: If billionaires spend more than $170 million lying and confusing voters, they are virtually guaranteed to win,” Weinstein said.

What happens next is unclear.

Prior to the election, AHF unsuccessfully sued to take Proposition 34 off the ballot, arguing it was unconstitutional because it so singularly targets the organization.

However, one legal expert previously told the Times courts generally are reluctant to remove measures before an election and that there was a “good chance” a judge would find the measure unconstitutional if it passed.

In an email, AHF spokeswoman Jacki Schechner said that organization would decide on what legal action to take once it sees how the law will be applied.

The Yes on 34 campaign declared victory last week, before the race was called by the Associated Press, saying voters took action to close a “loophole” that allowed healthcare organizations to spend money meant for patients on “luxury condos, CEO bonuses, naming rights on sports stadiums, and political campaigns.”

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