Eastern District of Texas
Press releases recorded for this federal judicial district.
Jefferson County man guilty of violent crime spree targeting Southeast Texas businessesRead the Press Release
BEAUMONT, Texas – A Beaumont man has pleaded guilty to federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Brandon Tyrone Mayberry, 21, pleaded guilty to Hobbs Act robbery and brandishing a firearm during a crime of violence before U.S. Magistrate Judge Christine L. Stetson on Feb. 15, 2024.
According to court documents, in April and May of 2023, Mayberry and Daniel James Leatherwood robbed several businesses in and around Beaumont at gunpoint. The robberies included two Game X Change stores, a Shell gas station, an Express Mart convenience store, and a Cindie’s lingerie store.
Mayberry was indicted by a federal grand jury on Nov. 1, 2023. He faces up to 20 years in federal prison on the armed robbery charge and an additional seven years for brandishing a firearm during the commission of that crime. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the FBI, Beaumont Police Department, Nederland Police Department, and Liberty Police Department and prosecuted by Special Assistant U.S. Attorney Tommy L. Coleman with the cooperation of the Jefferson County District Attorney’s Office.
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Orange County felon sentenced for federal firearms violationRead the Press Release
BEAUMONT, Texas– An Orange, Texas man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Lance Steven Allen Jefferson, 36, pleaded guilty to being a felon in possession of a firearm and was sentenced to 30 months in federal prison by U.S. District Judge Marcia A. Crone on Feb. 1, 2024.
According to information presented in court, on May 11, 2023, Jefferson was stopped by law enforcement officers for a traffic violation on IH-10 in Beaumont. Jefferson told officers he had marijuana in the center console of the vehicle as well as a firearm under the seat. During a search of Jefferson’s vehicle, officers discovered a loaded pistol under the driver’s seat that had been reported stolen in Orange. Further investigation revealed Jefferson was a previously convicted felon and prohibited from owning or possessing firearms or ammunition.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Matt Quinn.
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Smith County man sentenced for federal firearms and drug trafficking violationsRead the Press Release
TYLER, Texas– A Tyler man has been sentenced to federal prison for firearms and drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Juan Espinoza, Jr., 27, pleaded guilty to possessing a firearm after having been previously convicted of a crime of family violence and possession with intent to distribute marijuana and was sentenced to 48 months in federal prison by U.S. District Judge Jeremy D. Kernodle on Jan. 31, 2024.
According to information presented in court, on Feb. 16, 2022, a federal search warrant was executed at Espinoza’s Tyler residence during which officers discovered approximately 4,600 grams of marijuana, 476 grams of Psilocybin, five semi-automatic pistols, a semi-automatic rifle, a shotgun, multiple rounds of ammunition, and $12,145.00 in cash. Espinoza was convicted of a misdemeanor crime of domestic violence in Smith County in 2016 and prohibited by federal law of possessing firearms or ammunition.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Jim Noble.
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Four indicted in university athletic billing scheme and COVID-19 billing schemeRead the Press Release
PLANO, Texas – Four individuals, including two physicians, have been indicted in the Eastern District of Texas charged with federal violations involving a university athletic billing scheme, announced U.S. Attorney Damien M. Diggs today.
Mouzon Bass, III, also known as Muzzy Bass, 58, of Highland Park; Lance West Wilson, 54, of Allen; and Robert Brent Scott, 59, of La Quinta, CA; were indicted by a federal grand jury in January 2024 and charged with conspiring to commit wire fraud, conspiring to commit healthcare fraud, and conspiring to commit money laundering.
In a separate indictment returned in October 2023, Kyle Kelly Carter, 61, of Keller, was charged with conspiring to commit wire fraud. The defendants have all made initial appearances in federal court this month.
According to the indictments, from approximately 2014 through 2023, the defendants are alleged to have been involved in a university-centered athletic department billing scheme. Bass and Wilson used their company, Vivature, to submit false claims to private insurance carriers representing that physicians, like Scott and Carter, were providing medical services for injured student-athletes at universities across the country. In reality, these physicians did not see or treat these student-athletes, and in many instances, were physically hundreds of miles away from where the student-athletes were receiving treatment. The services were actually performed by athletic trainers employed by the universities’ athletic departments—who, most times, were specifically excluded from insurance companies’ reimbursement policies. At the direction of Bass and Wilson, Vivature submitted thousands of false claims to the insurance companies, named Scott, Carter, and other physicians as the servicing providers, and used their NPI numbers on the claims’ paperwork. In exchange for allowing the fraudulent use of their NPI and credentials, Vivature made regular payments to Scott, Carter, and other physicians.
A separate conspiracy involved only defendants Bass, Wilson, and Scott, who executed a scheme to fraudulently obtain Health Resources and Services Administration (“HRSA”) government funds earmarked for COVID-19 testing provided to uninsured Americans. The defendants partnered with international resorts hosting American travelers abroad, offering to manage the billing and claims process for COVID-19 testing provided to these American travelers. Then, the defendants submitted thousands of reimbursement claims to HRSA for such travelers, even though such travelers were privately insured and ineligible under the HRSA program.
In total, the defendants are alleged to have collectively obtained over $70 million from the two schemes. With these funds, they paid themselves millions of dollars; purchased real property including a multi-million dollar home, lakehouse, and international residence; and bought a multi-million dollar yacht.
This case is being investigated by the FBI and prosecuted by assistant U.S. attorneys in Plano.
A grand jury indictment is not evidence of guilt. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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New Yorker sentenced for possessing automatic rifle in basilica school zoneRead the Press Release
BEAUMONT, Texas – A Brooklyn, NY man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Ahmed Abdalla Allam, 26, pleaded guilty to possession of a firearm in a school zone and was sentenced to 60 months in federal prison, the statutory maximum, by U.S. District Judge Marcia A. Crone on Jan. 30, 2024.
According to information presented in court, Allam, who is from New York, purchased an AR-15 style rifle in Pennsylvania, two days after a counterterrorism operation resulted in the death of Al Qaeda leader, Ayman al-Zawahiri. Allam then undertook a trek throughout the United States that ended in Beaumont, Texas, where he parked his car next to a Christian elementary school.
On January 29, local police searched Allam’s vehicle following a traffic stop and found him in possession of the AR-15, a 30-round magazine, and 150 rounds of ammunition. Chillingly, Allam penned writings that indicated he was planning to murder children and their parents in retaliation for the counter-terrorism work of the United States. The day he was arrested, Allam, told a parent that he was on a “mission” and that “no one would ever see him again.”
“The citizens of Beaumont and the Saint Anthony’s community should be proud that their collective vigilance in reporting Mr. Allam’s suspicious activities—parking his SUV outside of a Catholic school for hours at a time over the course of several days, while armed with an AR-15 rifle and multiple rounds of ammunition—prevented what would have been a mass shooting,” said U.S. Attorney Damien M. Diggs. “The work of the Beaumont Police Department and our federal law enforcement partners should be commended, as they worked together to prevent what was sure to be a sad day in Beaumont and the nation.”
“Vigilant Beaumont citizens took the phrase ‘See Something, Say Something,’ to heart, potentially saving numerous lives and uncovering Mr. Allam’s sinister motivations,” said FBI Houston Special Agent in Charge Douglas Williams. “Days after a U.S. military operation killed a top al-Qaeda leader, Ahmed Allam drove to Beaumont, parked his car near a Catholic school, and observed children and their parents while possessing a rifle and hundreds of bullets. The quick reporting of Allam’s suspicious activities to law enforcement by community members allowed FBI Beaumont counterterrorism agents, Beaumont police officers, and ATF investigators to swiftly respond and disrupt what could have been a devastating retaliatory attack.”
“This incident serves as a prime example of the success of the ‘See Something, Say Something’ campaign,” said Acting ATF SAC Francisco Ortega. “ATF was able to work hand in hand with our law enforcement partners to prevent a potential violent crime. It is through the community’s collective efforts that we can maintain a safe and secure environment for everyone. We encourage all members of our community to remain vigilant and report any suspicious activities to law enforcement.”
“The Beaumont Police Department is committed to the safety of all of our citizens, especially our children,” said Beaumont Police Chief Jimmy Singletary. “This case is a perfect example of the importance of the ‘See Something, Say Something’ campaign. It takes all of us working together to be vigilant and report suspicious activity. Protecting our children is a mission everyone should stand behind. BPD will continue to work with our Federal Law Enforcement partners to ensure swift justice for anyone who jeopardizes the safety of the most vulnerable in our community. I would like to commend the leadership of Saint Anthony for their diligence and steadfastness in protecting their students.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the FBI's Beaumont Resident Agency; Bureau of Alcohol, Tobacco, Firearms and Explosives; Beaumont Police Department; Jefferson County District Attorney's Office; Port Arthur Fire Department, and Montgomery County Fire Marshall. This case was prosecuted by Assistant U.S. Attorneys John B. Ross and Joseph R. Batte.
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Kaufman County man sentenced to 20 years in federal prison for defrauding investors of at least $2.7 million in the Eastern District of TexasRead the Press Release
SHERMAN, Texas– A Terrell man was sentenced to federal prison for defrauding investors in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Michael Disman, 41, pleaded guilty to wire fraud charges and was sentenced to 20 years in federal prison by U.S. District Judge Amos Mazzant on Jan. 25, 2024. Disman was ordered to pay restitution of approximately $2.7 million to his victims.
According to information presented in court, between January 2018 and March 2022, Disman operated an investment fraud scheme using various companies he controlled, including “Dexter Development” and “Disman Energy.” Disman solicited funds from victim investors for purported lucrative land development projects, when in reality, those projects were non-existent and the investor funds were spent elsewhere. To execute his scheme, Disman made various material misrepresentations about investor payouts and the use of investor money, executing sham contracts and sharing real estate paperwork to add legitimacy. Disman actually used the investor funds for various non-business purposes, including ATM cash withdrawals and drug purchases. In total, Disman defrauded at least 17 victim investors and caused at least $2.7 million in losses.
This case was investigated by the FBI and prosecuted by assistant U.S. attorneys in the Plano office.
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Beaumont man guilty of violent crime spree targeting Southeast Texas businessesRead the Press Release
BEAUMONT, Texas – A Beaumont man has pleaded guilty to federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Daniel James Leatherwood, 21, pleaded guilty to Hobbs Act robbery and brandishing a firearm during a crime of violence before U.S. Magistrate Judge Zack Hawthorn on Jan. 25, 2024.
According to court documents, in April and May of 2023, Leatherwood and another individual robbed several businesses in and around Beaumont at gunpoint. The robberies included two Game X Change stores, a Shell gas station, an Express Mart convenience store, and a Cindie’s lingerie store.
Leatherwood was indicted by a federal grand jury on Nov. 1, 2023. He faces up to 20 years in federal prison on the armed robbery charge and an additional seven years for brandishing a firearm during the commission of that crime. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the FBI, Beaumont Police Department, Nederland Police Department, Liberty Police Department and prosecuted by Special Assistant U.S. Attorney Tommy L. Coleman with the cooperation of the Jefferson County District Attorney’s Office.
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Van Zandt County woman sentenced to federal prison for defrauding elderlyRead the Press Release
SHERMAN, Texas – A Wills Point woman has been sentenced to federal prison for fraud violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Lisa Lynn Smith, 62, pleaded guilty to wire fraud and was sentenced to 20 months in federal prison today by U.S. District Judge Amos Mazzant. Smith was also ordered to pay restitution in the amount of $47,236.94 to her elderly victim.
According to information presented in court, Smith carried out a scheme to defraud an elderly Plano man by telling him lies about urgent personal and family expenses that she was facing. Smith also convinced the victim that she was going to receive a lawsuit settlement for over $2.5 million, and that she would use the money to pay the victim back for the money that he was giving to her. The victim would provide funds to Smith by various means including allowing Smith access to a credit card, which she used for various purposes such as repeatedly renting cars for her family members. In fact, Smith’s lawsuit paid nothing close to this amount and Smith was using the money for personal and family expenses that she did not disclose to the victim.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
This case was investigated by the Federal Bureau of Investigation’s Frisco Resident Agency and prosecuted by Assistant U.S. attorneys in the Plano office.
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Tarrant County man indicted for trafficking fentanyl through the mailRead the Press Release
PLANO, Texas – A Fort Worth man has been indicted for federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Jimmie Jalen Humphries, 28, was named in an indictment returned by a federal grand jury in November 2023, charging him with possession with intent to distribute fentanyl. Humphries made his initial appearance on January17, 2024 before U.S. Magistrate Judge Kimberly C. Priest Johnson. Humphries is set for a detention hearing before Judge Johnson on January 22.
According to the indictment and information presented in court, in April 2023, Humphries mailed approximately 5,000 fentanyl pills from Frisco, Texas to the Washington, DC area. Investigators from the U.S. Postal Inspection Service and the Drug Enforcement Administration later identified Humphries as the source of the fentanyl. Humphries was on supervised release for federal firearms violations out of Michigan at the time of the alleged offense. During his arrest, a search warrant was executed on Humphries’ residence, resulting in the seizure of fentanyl pills, large sums of U.S. currency, ammunition, and extended high-capacity pistol magazines.
If convicted, Humphries faces from 10 years to life in federal prison.
This case is being investigated by the U.S. Postal Inspection Service and the U.S. Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorney Lesley Brooks.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Fannin County man sentenced for multiple East Texas bank robberiesRead the Press Release
SHERMAN, Texas – A Leonard, Texas man has been sentenced to federal prison for robbing multiple banks in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Kevin Long, 31, pleaded guilty to bank robbery and was sentenced to 70 months in federal prison by U.S. District Judge Sean Jordan on January 18, 2024. Long was also ordered to pay restitution of $573,000.
According to information presented in court, Long robbed multiple banks in East Texas between 2020 and 2021. During the robberies he passed threatening notes to bank employees, he physically restrained bank employees, and he stole over $550,000. Those robberies include: CapTex Bank in Bonham on Jan. 31, 2020; Financial Bank in Farmersville on August 11, 2020; Bancorp South Bank in Tom Bean on Oct. 16, 2020; Commercial Bank in Farmerville on August 13, 2021; and First United Bank in Leonard on August 20, 2021.
This case was investigated by the Federal Bureau of Investigation, Bonham Police Department, Farmersville Police Department, Grayson County Sheriff’s Office, Sherman Police Department, Allen Police Department, Leonard Police Department, Bells Police Department, Tom Bean Police Department, and Texas Department of Public Safety.
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Orange County man sentenced for trafficking methamphetamineRead the Press Release
BEAUMONT, Texas– An Orange, Texas man has been sentenced to federal prison for drug trafficking in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Roy Allen John, Jr., 47, pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in relation to a drug trafficking crime and was sentenced to 122 months in federal prison by U.S. District Judge Marcia A. Crone on Jan. 16, 2024.
According to information presented in court, in January of 2022, John was arrested after selling approximately 27.89 grams of methamphetamine to another person for $350 cash in the Home Depot parking lot in Orange. An additional 123 grams of methamphetamine and three firearms were found in the vehicle John was driving.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Orange Police Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
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Houston man sentenced to federal prison for Beaumont bank robberyRead the Press Release
BEAUMONT, Texas– A Houston man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Michael Raymond Karras, 65, pleaded guilty to bank robbery and was sentenced to 188 months in federal prison by U.S. District Judge Marcia Crone on Jan. 9, 2024.
According to information presented in court, on June 6, 2023, Karras robbed the Chase Bank on Eastex Freeway in Beaumont. Within minutes of the robbery, Karras was located at a convenience store wearing a trench coat and driving the vehicle described in the robbery. After detaining Karras and obtaining consent to search his vehicle, officers discovered $2,870.00 in cash and the handwritten note Karras had used in the robbery.
This case was investigated by the Beaumont Police Department and the FBI and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
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Jefferson County men sentenced in separate federal casesRead the Press Release
BEAUMONT, Texas– Two Jefferson County men have been sentenced to federal prison in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Mikale Rashad Bolton, 21, of Beaumont, pleaded guilty to carjacking and was sentenced to 180 months in federal prison by U.S. District Judge Marcia A. Crone on Jan. 8, 2024.
According to information presented in court, on June 25, 2022, local law enforcement responded to the scene of a carjacking near French Road in Beaumont. The investigation revealed that Bolton approached a vehicle and asked the driver for a cigarette lighter. After the driver handed the lighter to Bolton, Bolton pulled out a firearm and pointed it at the driver’s head. Bolton ordered the driver to exit the vehicle. The driver was told not to contact police or Bolton would return and kill him. Bolton fled the scene in the stolen vehicle. This case was investigated by the FBI and the Beaumont Police Department.
Jordan Malik Bronnon, 30, of Port Arthur pleaded guilty to being a felon in possession of a firearm and was sentenced to 40 months in federal prison by Judge Crone on Jan. 8, 2024.
According to information presented in court, on May 23, 2022, local law enforcement conducted a traffic stop on a vehicle in which Bronnon was a passenger. The driver consented to a search of the vehicle, during which a backpack was located that contained various pieces of paperwork with Bronnon’s name and a rifle magazine containing ammunition. A rifle was also located on the rear passenger floorboard. This case was investigated by the ATF and the Port Arthur Police Department. Bronnon was a convicted felon and prohibited by federal law from owning or possessing firearms or ammunition.
These cases were prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
These cases were prosecuted by Assistant U.S. Attorney Russell James.
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Former paralegal sentenced in Texas Muslim Women’s Foundation theft schemeRead the Press Release
PLANO, Texas– A Melissa woman has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Nnenna Mary Jones, 40, pleaded guilty to wire fraud and was sentenced to 14 months in federal prison by U.S. District Judge Sean D. Jordan on Dec. 20, 2023. Jones was also ordered to pay restitution in the amount of $16,950.
According to information presented in court, the Texas Muslim Women’s Foundation, a 501(c)(3) public charity in Plano, Texas, serves Muslim women and their families who are survivors of domestic and family violence. The Foundation offers its clients in-house legal assistance with the immigration process, among other services. The Foundation advertises that it offers its services—including immigration legal assistance—free of charge. Jones worked for the Foundation as a paralegal and was a Department of Justice Accredited Representative, which allowed her to represent clients in court in immigration matters with the Department of Homeland Security. She was also a licensed attorney in Nigeria before moving to the United States.
The Foundation’s legal team routinely requests waivers of certain fees its clients incur during the immigration process, and most of its clients qualify for these waivers. If the Foundation’s clients do not qualify for a waiver of the immigration fees, then at times the Foundation pays the fee. However, Jones represented to clients of the Foundation that they were required to pay certain fees to the government in relation to their immigration proceedings. In reality, the clients’ fees had either been waived by the government or paid by the Foundation. Clients wrote checks and obtained money orders in the amounts of the fees Jones told them they owed to the government. However, Jones instructed the clients to leave the “pay to” line on the checks and money orders blank. Jones photocopied the clients’ checks and money orders, wrote “U.S. Department of Homeland Security” on the “pay to” line of the photocopied checks and money orders, and placed the photocopies in the clients’ files. Jones then wrote her own name in the “pay to” line of the clients’ original checks and money orders and cashed them or deposited them into her own accounts.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Sean J. Taylor.
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Oklahoman sentenced in East Texas for federal wildlife violationRead the Press Release
TYLER, Texas – An Oklahoma man has been sentenced for federal wildlife violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Dusty Caudill, 37, of Ardmore, OK, pleaded guilty to the transportation of wildlife in violation of state law – a violation of the U.S. Lacey Act – and was sentenced to 12 months in federal prison today by U.S. District Judge Jeremy D. Kernodle on Dec. 19, 2023.
According to information presented in court, in February of 2021 Caudill conspired with co-defendants David Bartlett and Darryl Garcia to transport stolen African elephant ivory tusks from Ardmore, Oklahoma to Tyler, Texas for sale. The tusks had been stolen in the burglary of a residence in Ada, Oklahoma in late 2020. Bartlett negotiated the sale of the tusks with a person he believed to be a resident of Houston, Texas for $10,700.00.
The investigation revealed that on February 17, 2021 Caudill and Garcia removed the ivory tusks from the trunk of Caudill’s car in Ardmore and placed them in Garcia’s car. Garcia then picked up Bartlett and the two of them drove the tusks to Tyler, Texas where they believed they would be meeting with the buyer from Houston. Instead, they were met by federal wildlife agents.
African elephants are a protected wildlife species under the federal endangered species act. The term “wildlife” includes any part of the animal. The U.S. Lacey Act prohibits the transportation of endangered species, valued at more than $350.00 in interstate commerce in violation of federal or state law.
This case was investigated by special agents with the U.S. Fish and Wildlife Services and prosecuted by Assistant U.S. Attorney Jim Noble.
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Dallas County individuals indicted in investment fraud and money laundering schemeRead the Press Release
PLANO, Texas – Three individuals have been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Marina Brooks, 67; Charles “Chuck” Brooks, 71; and Crystal Brooks, 35, were named in the two-count indictment returned by a federal grand jury on Dec. 14, 2023, in the Eastern District of Texas. The indictment charges the defendants with conspiracy to commit wire fraud and conspiracy to commit money laundering. The defendants made their initial appearances today before U.S. Magistrate Judge Kimberly C. Priest Johnson.
The defendants are alleged to have engaged in a large-scale investment fraud scheme targeting individuals in the Mexican-American community. According to the indictment, the defendants and their co-conspirators fraudulently solicited “investments” for a multitude of schemes, such as concert series and cryptocurrency-related projects. Through marketing seminars, radio advertisements, and in-person meetings, the defendants fraudulently represented that these investment opportunities would yield significant returns relative to market standards. However, the defendants are alleged to have transferred the victim investor funds to other business and personal accounts, took out commissions and cash withdrawals, and lost over 95% of the funds taken from victim investors. In all, the defendants fraudulently took at least $9.5 million from at least 100 victim investors.
If convicted, the defendants each face up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Colombian national sentenced to 25 years in federal prison in drug trafficking conspiracyRead the Press Release
SHERMAN, Texas – A Colombian national has been sentenced to 25 years in federal prison for drug trafficking violations, announced Eastern District of Texas U.S. Attorney Damien M. Diggs today.
Leonar Molina-Ferro, also known as Michel, 47, was convicted of conspiracy to manufacture and distribute more than five kilograms of cocaine knowing it would be imported and distributed in the United States. Molina-Ferro was sentenced to 300 months in federal prison on December 19, 2023, by U.S. District Judge Amos L. Mazzant.
According to information presented in court, Molina-Ferro was a cocaine trafficker who assisted a Colombian-based drug cartel responsible for distributing large quantities of cocaine via land, sea, and air throughout South and Central America. The bulk of these shipments were destined for the United States. Molina-Ferro’s primary role was to coordinate maritime shipments of cocaine from Colombia to Panama, Costa Rica, Nicaragua, and Honduras. In his role, he directed several persons to acquire, transport, and distribute ton quantities of cocaine. Molina-Ferro was arrested at the request of the United States for extradition at his apartment in Medellin, Colombia on August 14, 2018. During the arrest operation, Molina-Ferro opened fire on Colombian National Police Officers, wounding the first officer to make entry into the apartment. That officer was subsequently honored by the Drug Enforcement Administration and U.S. Attorney’s Office in the Eastern District of Texas for his bravery in the fight against narcotics trafficking. Molina-Ferro was subsequently extradited to the United States from Colombia on December 2, 2020.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the Drug Enforcement Administration and the North Texas OCDETF Strike Force and prosecuted by Assistant U.S. Attorney Wes Wynne. The Justice Department’s Office of International Affairs and the Narcotic and Dangerous Drug Section’s Judicial Attaché’s office at the U.S. Embassy in Bogota provided critical assistance in securing the arrest and extradition of Molina-Ferro.
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Individuals indicted and arrested in Collin County sex trafficking conspiracyRead the Press Release
PLANO, Texas – Three North Texas individuals have been charged with sex trafficking crimes in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
William McKinnley Garland, 40, of Plano; Jalen Alexander Bobo, 24, of Dallas; and Robberta Marie Khan, 27, of Euless, have been charged by an indictment returned by a grand jury in the Eastern District of Texas. All three were charged with coercion and enticement and aiding and abetting. Garland and Bobo are also charged with conspiracy to commit sex trafficking by force, fraud, or coercion.
This indictment is the culmination of a years-long investigation by the Plano Police Department into a sex trafficking organization run by Garland and others. Evidence revealed that young women were allegedly recruited to work for Garland as escorts. However, once enticed, they were allegedly forced into performing commercial sex by Garland, or those working under his direction, often through violence and threats of violence. Evidence obtained by law enforcement revealed that the organization operated throughout Collin County. A federal search warrant was executed at Garland’s Plano residence on December 11, 2023, at which time Garland was taken into custody.
If convicted, Garland and Bobo face a maximum term of life in federal prison. Khan may be sentenced to up to 20 years in federal prison.
“The Eastern District of Texas is proud to work with our local and federal partners to stand against the exploitation of vulnerable persons and hold human traffickers accountable,” said U.S. Attorney Damien M. Diggs. “This indictment represents the first step toward dismantling an organization in which individuals profited from commercial sex, including from women who were threatened or forced into prostitution.”
According to Plano Police Department Chief Ed Drain, “I am extremely pleased with the collaboration and diligence on the part of our Plano Police Detectives, our FBI partners, and the United States Attorney's office in this investigation. These investigative efforts brought several violent offenders to justice and restored the peace, tranquility, and safety, not only to our community, but to the victims of these egregious crimes. Our continuing work will leave no stone unturned in an effort to identify those who aid in perpetrating these offenses and to provide assistance and justice to those who fall victim to these offenders.”
“Human trafficking is one of the most heinous crimes the FBI encounters and unfortunately, these encounters are far more common than most people realize,” said Dallas FBI Special Agent in Charge Chad Yarbrough. “Collaboration with the Plano Police Department and U.S. Attorney’s Office was critical to identify and arrest the alleged traffickers and as we continue the investigation and move forward to prosecute the perpetrators, we hope to identify additional victims in order to provide the services and support they need to regain their dignity, identity and sense of self.”
Investigators believe that there are other individuals who worked for or had interactions with this organization. Any members of the public with information about this case or possible victims are urged to contact the Plano Police Department at (972) 941-2044.
This case is being investigated by the Plano Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Marisa J. Miller.
It is important to note that an indictment or arrest should not be considered as evidence of guilt and that all persons charged with a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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Importer agrees to pay $798,334 to resolve allegations of underpayment of customs dutiesRead the Press Release
SHERMAN, Texas – U.S. Attorney Damien M. Diggs of the Eastern District of Texas announced today that Homestar North America, LLC has agreed to pay $798,334 to resolve allegations that it violated the False Claims Act by failing to pay customs duties owed for furniture imports from China.
Customs laws require importers to pay duties determined by the actual value of the goods imported. Liability to pay duties arises immediately and automatically upon the importation of goods into the United States. This settlement resolves allegations that Homestar North America, LLC and its parent company Homestar Corporation, conspired to underreport the value of imported goods delivered to Homestar North America, LLC in the United States following the two increases on Section 301 tariffs for certain products manufactured in China under the Harmonized Tariff Schedule of the United States. The two increases respectively took effect September 24, 2018 and June 15, 2019.
Specifically, the government alleged that from September 2018 through December 2022, falsified invoices were created and submitted to the United States Customs and Border Protection (CBP) containing false, lower values for the goods Homestar North America, LLC received from Homestar Corporation, its Chinese parent company, to avoid payment of the increased duties owed. The government contended that a second set of invoices containing the true, actual value of the goods imported were withheld from CBP but were then used to ensure that Homestar North America, LLC paid its parent company and supplier the actual value of the imported goods. The government alleged that this false invoicing practice resulted in undervaluation of goods imported into the United States, which resulted in a loss of revenue to the United States.
“Imported goods are necessary for the consumer-economy in the United States. However, companies that wish to gain access to the United States' markets must comply with all laws regarding the import of their goods, including the obligation to disclose the actual value of imported goods and to pay the duties owed as a result of importation,” said U.S. Attorney Damien M. Diggs. “Instead of complying with those obligations, Homestar chose to disregard its obligations and improve its bottom line. Our office will aggressively pursue any company that similarly chooses its bottom line over compliance with the law.”
“CBP’s Consumer Products and Mass Merchandising Center of Excellence and Expertise worked in collaboration with the U.S. Attorney’s Office to review thousands of documents, hundreds of entry summaries, and analyzed financial reports provided by Homestar, as relevant to the undervaluation and payment allegations,” said Director Gregory Alvarez of the CBP Atlanta Field Office. “CBP is proud of the investigative work and analysis done by its employees on this case and will continue to work collaboratively with inter-agency stakeholders to safeguard our nation’s economic security.”
The civil settlement resolves claims brought by a relator under the qui tam or whistleblower provisions of the False Claims Act. These provisions allow a private party, known as a relator, to file an action on behalf of the United States and receive a portion of any recovery. The qui tam action is captioned U.S. ex rel. Larry J. Edwards, Jr. v. Homestar North America, LLC, Cause No. 4:21-cv-00148 (E.D. Tex.). As part of today’s resolution, the whistleblower will receive approximately $151,683.
The resolution obtained was the result of a coordinated effort between the U.S. Attorney’s Office, Eastern District of Texas with assistance from CBP and the U.S. Immigration and Customs Enforcement Homeland Security Investigations.
The matter was handled by Assistant U.S. Attorney Betty Young for the Eastern District of Texas.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
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Carrollton man convicted of federal child pornography violationsRead the Press Release
SHERMAN, Texas – A Carrollton man has been convicted of federal child pornography violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Eric Victor Henry Blood, 43, was found guilty by a jury of three counts of transportation of child pornography and one count of possession of child pornography following a trial before U.S. District Judge Amos L. Mazzant on December 12, 2023.
According to information presented in court, Blood came to the attention of law enforcement when Google reported that his email address had been used to upload images and videos of child pornography onto a cloud storage account. Homeland Security Investigations special agents served a federal search warrant at Blood’s residence in Carrollton in May 2022, during which Blood admitted to using that Google account. He also ultimately admitted to accessing and possessing child pornography. Agents located child pornography files on multiple electronic devices he owned and possessed. Blood was charged with three counts of transporting child pornography and one count of possessing child pornography.
The case proceeded to trial on December 11, 2023 and, at the conclusion, the jury returned guilty verdicts on all counts.
Under federal statutes, Blood faces up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations and prosecuted by Assistant U.S. Attorneys Marisa Miller and Lesley Brooks.
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Amarillo man guilty of violent crime spree from Beaumont to LufkinRead the Press Release
BEAUMONT, Texas – An Amarillo man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Jamelle Antoine Parker, 35, pleaded guilty to carjacking and Hobbs Act Robbery before U.S. District Judge Marcia A. Crone on Dec. 11, 2023.
According to information presented in court, on April 1, 2023, Parker approached a woman putting air in her tires at a gas station on Washington Boulevard in Beaumont. Parker demanded the car from the woman. While doing so, he reached in his waistband for what the woman believed to be a firearm. She ran to a nearby store as Parker fled in her vehicle. Parker drove the stolen vehicle to the Criss Cross convenience store on Martin Luther King Jr. Parkway in Beaumont. Parker entered the store, told the clerk he had a firearm, and demanded money from the register or the clerk would be killed. Parker obtained money from the clerk and fled the scene. Parker then drove the stolen vehicle to Lufkin where he crashed the vehicle into the Big's convenience store on West Frank, Avenue. Parker entered that convenience store and told the clerk he had a firearm and demanded and obtained money from the clerk. Parker fled on foot towards a nearby Whataburger. Parker approached a vehicle in the drive-through lane of the Whataburger and demanded the driver’s vehicle, while asking the driver if he “wanted to die today.” The driver exited the vehicle, and Parker grabbed him by the neck and pushed him aside. Parker began speeding away in the stolen vehicle, in the direction of a responding officer. Parker was shot by the officer in the legs with non-life threatening wounds. Parker crashed the vehicle after a brief chase and was taken into custody.
Parker was indicted by a federal grand jury on May 3, 2023. He faces up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Beaumont Police Department, and the Lufkin Police Department and prosecuted by Assistant U.S. Attorney Russell James.
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Smith County man sentenced for using stolen valor to defraud investorsRead the Press Release
TYLER, Texas – A Tyler man has been sentenced to more than 11 years in federal prison for multiple violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Derek Robert Hamm, 39, pleaded guilty to wire fraud, money laundering, violating the Stolen Valor Act, using a fraudulent military discharge certificate, and being a felon in possession of firearms and ammunition. Hamm was sentenced to 135 months in federal prison on Dec. 7, 2023, by U.S. District Judge J. Campbell Barker. Hamm’s sentence was the largest ever imposed in relation to a fraud scheme involving the Stolen Valor Act.
The Stolen Valor Act of 2013 makes it illegal to fraudulently wear medals, embellish rank, or make false claims of military service to obtain money, employment, property, or some other tangible benefit. As part of his sentence Hamm agreed to pay restitution of at least $2.3 million and forfeiture of the proceeds of his criminal conduct, including jewelry, automobiles, and cash proceeds in the amount of $1,675,000.
According to court documents, Hamm invented a persona of being a wealthy and successful war hero. Hamm held himself out to be a former member of the Army Special Forces who had served multiple tours of duty in Iraq, Afghanistan, and other countries. He claimed to have been awarded a Purple Heart, Bronze Star, Silver Star, and Distinguished Service Cross for his service. Hamm also represented that he was related to Harold Hamm, the billionaire oilman in Oklahoma, which he claimed gave him access to financial resources and oil industry expertise. Through this larger-than-life persona, Hamm created an extensive network of friends who introduced him to potential investors. Those investors believed Hamm’s claims and invested in what they expected to be worthwhile ventures spearheaded by a trustworthy and capable entrepreneur.
In reality, Derek Hamm was nothing of the sort. Hamm was not a decorated war hero. He was no oil industry tycoon. He was not related to Harold Hamm. He did not spend investors’ funds on the latest oil industry technology or new oil wells. Within hours of receiving investors’ funds, Hamm spent their money on himself and his family, including expensive jewelry, vehicles, and vacations to expensive resorts on private charter planes. All the while, Hamm represented to investors that he had invested their money in successful oil industry projects. He continued to pump investors to keep sending him money even as their investments failed to produce any returns.
“As the son of a veteran, I have a deep appreciation for the importance of military service and recognizing the valor of our servicemen and women,” said U.S. Attorney Damien M. Diggs. “The Stolen Valor Act protects and honors veterans and the sacrifices they’ve made to our country. When people make false claims of military heroism, they diminish the true acts of bravery and heroism that Americans celebrate and tribute. Stolen valor is an insult to all those who stood in harm’s way and earned their decorations. By using stolen valor to steal from people, Hamm preyed on the victims’ love of this country and their reverence for American heroes who earned such real military awards through their sacrifices to this country.”
“The defendant invented a successful and noble persona to disguise his failed business and dishonest intentions in order to steal millions of dollars from unsuspecting investors. In addition to pretending to be an American hero, he was found to be in possession of dozens of firearms which was prohibited due to his criminal background. Mr. Hamm could not stop breaking the law,” said Dallas FBI Special Agent in Charge Chad Yarbrough. “I am proud that we can work with our partners at the U.S. Attorney’s Office to uphold the Stolen Valor Act and ensure that courageous attribution stays with our nation’s bravest defenders.”
Hamm also pleaded guilty to being a prohibited person in possession of firearms and ammunition. Hamm was convicted in Smith County in 2020 for theft of property, a state felony. As a felon, Hamm is prohibited by federal law from owning or possessing firearms or ammunition. According to court documents, Hamm was in possession of dozens of firearms, including several rifles with high-capacity magazines, and ammunition for those firearms. Because of his arsenal of weapons and his trained-warrior persona, Hamm scared any investors from pressing him on his failed investments.
Through its investigation, the government learned that this was not the first time that Hamm had used stolen valor for his own personal benefit. In 2020, Hamm presented falsified military records to a Smith County, Texas District Court, which he successfully leveraged into a more lenient sentence. Hamm had used those same false documents to obtain Bronze Star license plates from the Texas Department of Motor Vehicles.
After Hamm was indicted in January 2022, more than $350,000 worth of assets, including cash, vehicles, and jewelry, were seized pursuant to the Justice Department’s asset forfeiture procedures. Those assets were sold prior to sentencing and were forfeited to the government. Because Hamm did not have enough other assets to pay anything towards the $2.3 million restitution judgment, the U.S. Attorney requested for the Justice Department’s Money Laundering and Asset Recovery Section (MLARS) to approve application of the forfeited assets to the restitution debt so that the forfeited funds could be paid to the victims. MLARS expedited the U.S. Attorney’s request and approved it in a matter of days.
If you or someone you know has been a victim of Derek Robert Hamm, please contact the Federal Bureau of Investigation at 903-594-3503. Derek Robert Hamm is also known as D. Wayne Hamm II, Wayne Hamm, D. Wayne H., DW Hamm, and RD Hamm.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence; deterring illegal possession of guns, ammunition, and body armor; and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state, and local law enforcement agencies.
This case was investigated by the Federal Bureau of Investigation’s Tyler Field Office, with assistance from the Tyler Police Department, the Smith County Sheriff’s Office, the Phoenix Arizona Police Department, Smith County Adult Probation, the Texas Railroad Commission-Enforcement Division, Department of Veteran’s Affairs-Office of Inspector General, Texas Comptroller of Public Accounts-Criminal Investigation Division, and the United States Army Special Operations Command. This case was prosecuted by Assistant U.S. Attorneys Robert Austin Wells and Ryan Locker.
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Laredo man guilty of drug trafficking violations in the Eastern District of TexasRead the Press Release
PLANO, Texas – A Laredo man pleaded guilty to federal drug trafficking violations in the Eastern District of Texas on the day his jury trial was set to begin, announced U.S. Attorney Damien M. Diggs.
Jorge Elias Golarte, 54, of Laredo, Texas and Monterrey, Mexico, pleaded guilty to conspiracy to possess with the intent to distribute and distribution of methamphetamine, cocaine, heroin, and marijuana before U.S. District Judge Sean Jordan today.
According to information presented in court, Golarte, who is in the shipping business in Laredo, Texas and Monterrey, Mexico, admitted to his role in the conspiracy, distributing marijuana and cocaine from various sources which would then be provided to co-conspirators and distributed during the conspiracy in the Eastern District of Texas and elsewhere. Golarte will also forfeit ownership of one of his Margo Logistics tractor-trailers.
Golarte faces a minimum of 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is investigation involves the Drug Enforcement Administration, Laredo and Dallas, the U.S. Border Patrol, the Dallas Police Department, and the Lewisville Police Department and is prosecuted by Assistant U.S. Attorneys Heather Rattan and Kevin McClendon.
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Five defendants convicted of health care kickback conspiracyRead the Press Release
TYLER, Texas – Five defendants, including laboratory executives and hospital executives, were found guilty of conspiring to violate the Anti-Kickback Statute, announced U.S. Attorney Damien M. Diggs today.
Susan L. Hertzberg, 65, of New York, New York; Matthew John Theiler, 57, of Mars, Pennsylvania; David Weldon Kraus, 65, of Loudon, Tennessee; Thomas Gray Hardaway, 51 of San Antonio, Texas; and Jeffrey Paul Madison, 48, Georgetown, Texas, were found guilty by a jury on November 30, 2023, following a seven-week-long trial before U.S. District Judge Jeremy D. Kernodle.
“Patients should be able to trust that their physicians are ordering tests and making laboratory referrals based on what is best for the patient, and not because the physicians are looking to pad their pockets with profits from kickbacks,” said U.S. Attorney Damien M. Diggs. “For several years, these defendants utilized an elaborate marketing scheme to facilitate payments to physicians in return for the physicians’ laboratory referrals. Improper financial relationships such as these undermine the integrity of federally-funded healthcare programs by influencing physician decision-making. This case emphasizes our District’s commitment to justice by pursuing both the hospital and lab executives who sought to influence the physicians and the physicians who accepted the illegal kickbacks.”
“The reach of HHS-OIG is far and wide. Our agents and law enforcement partners will not be deterred by the scope of a health care fraud investigation or the location of its’ defendants,” said Jason E. Meadows, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Dallas Region. “Kickback arrangements, regardless of their intended complexity, will always be an investigative priority for our agency.”
“The Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of TRICARE, the health care system for military members and their dependents,” said Gregory P. Shilling, Acting Special Agent-in-Charge of DCIS’s Southwest Field Office. “Today's guilty verdicts send a clear message that DCIS, along with our law enforcement partners and the U.S. Attorney’s Office, will diligently pursue fraudsters who seek self-enrichment by undermining the integrity of this critical program.”
On January 12, 2022, Hertzberg, Theiler, Kraus, Hardaway, and Madison, as well as Jeffrey Paul Parnell, 55, of Tyler; Laura Spain Howard, 49, of Allen; Todd Dean Cook, 58, Wimauma, Florida; William Todd Hickman, 60, of Lumberton; Christopher Roland Gonzales, 47, of McKinney; Ruben Daniel Marioni, 39, of Spring; Jordan Joseph Perkins, 39, of Conroe; Elizabeth Ruth Seymour, 40, of Corinth; Linh Ba Nguyen, 59, of Dallas; Thuy Ngoc Nguyen, 55, of Dallas; Joseph Gil Bolin, of Dallas; Heriberto Salinas, 63, of Cleburne; and Hong Davis, 55, of Lewisville, were indicted for conspiring to commit illegal remunerations in violation of the Anti-Kickback Statute. The statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federal health care programs. The defendants were charged for their roles in a conspiracy through which physicians were incentivized to make referrals to rural hospitals and an affiliated lab in exchange for kickbacks which were disguised as investment returns; and in which marketers were incentivized to arrange for or recommend the ordering of services from rural hospitals and an affiliated lab.
Two rural Texas hospitals, Little River Healthcare (LRH) based in Rockdale, and Stamford Memorial Hospital based in Stamford, partnered with Boston Heart Diagnostics (BHD), a clinical laboratory based in Framingham, Massachusetts, that specialized in advanced cardiovascular lipid testing. For a fee, BHD processed the blood tests while the hospitals billed the tests to insurers as hospital outpatient services, with the hospitals charging insurers a much higher rate than BHD could receive as a clinical laboratory. The hospitals utilized a network of marketers who in turn operated management services organizations (MSOs) that offered investment opportunities to physicians throughout the State of Texas. In reality, the MSOs were simply a means to facilitate payments to physicians in return for the physicians’ laboratory referrals. Pursuant to the kickback scheme, the hospitals paid a portion of their laboratory revenues to marketers, who in turn kicked back a portion of those funds to the referring physicians who ordered BHD tests from the hospitals or from BHD directly. BHD executives and sales force personnel leveraged the MSO kickbacks to gain and increase referrals and, in turn, to increase their revenues, bonuses, and commissions.
Parnell, Howard, Cook, Hickman, Gonzales, Marioni, Perkins, Seymour, Thuy Nguyen, Salinas, and Davis pleaded guilty prior to trial.
In January 2022, Robert O’Neal, 65, of San Antonio, pleaded guilty to conspiracy to commit illegal remunerations, in violation of Anti-Kickback Statute, and with conspiracy to commit money laundering. His role in the kickback conspiracy was to arrange for physician referrals and recommend the ordering of services to the rural hospitals and BHD. O’Neal also had kickback proceeds laundered on his behalf and, at times various times, obtained proceeds from the kickback conspiracy.
In July 2023, Peter J. Bennett, 49, of Houston, was convicted of money laundering conspiracy, money transmitting conspiracy, and perjury. According to information presented in court, Bennett created sham trusts and shell corporations through which he laundered at least $2,724,080.41 in healthcare kickback proceeds. Bennett used his law firm’s Interest on Lawyers Trust Account (IOLTA), operating account, and a personal bank account to launder and transmit the kickback proceeds.
The defendants face up to five years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the U.S. Department of Defense – Defense Criminal Investigative Service (DCIS) with assistance from the U.S. Secret Service and the U.S. Department of Commerce - Export Enforcement. It was prosecuted by Assistant U.S. Attorneys Adrian Garcia, Nathaniel C. Kummerfeld, Lucas Machicek, and Robert Austin Wells.
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Foreign National Convicted of Racketeering and Drug Trafficking ConspiracyRead the Press Release
A federal jury in Beaumont, Texas, convicted a Romanian national today for plotting to traffic hundreds of kilograms of cocaine from the United States in a scheme that also included money laundering, arms trafficking, and an attempt to assassinate rival gang members.
According to court documents and evidence presented at trial, Marius Lazar, 50, of Bucharest, Romania, was a “founding member” of his local chapter of the Hells Angels Motorcycle Club, a transnational outlaw motorcycle gang that was founded in the United States and is now active on six continents. Through his relationship with a fellow Hells Angels member from New Zealand, Lazar joined a conspiracy to purchase more than 400 kilograms of cocaine from a person in the United States, who the conspirators believed was a powerful drug trafficker but who was actually an undercover agent of the Drug Enforcement Administration (DEA). As part of his negotiations for the cocaine purchase, Lazar also solicited the undercover agent to kill two members of a rival motorcycle club in Romania, and offered to supply the undercover with rifles, grenades, armored vehicles, and other military-grade equipment that Lazar understood would be used against police officers in the United States. Members of the conspiracy sent nearly $1 million to the United States, via bank wires and Bitcoin transfers, as payment for the drugs and murders.
The jury convicted Lazar of conspiracy to commit racketeering, conspiracy to import cocaine into the United States, and conspiracy to commit money laundering. He faces a maximum penalty of life years in prison. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Co-defendants Murray Michael Matthews and Marc Patrick Johnson remain fugitives.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Damien Diggs for the Eastern District of Texas, DEA Administrator Anne Milgram, Special Agent in Charge Mark B. Dawson of Homeland Security Investigations (HSI) Houston, U.S. Marshal John Garrison of the U.S. Marshals Service (USMS), and Special Agent in Charge Christopher J. Altemus Jr. of the IRS Criminal Investigation (IRS-CI) Dallas Field Office made the announcement.
The DEA, HSI, USMS, and IRS-CI investigated the case, with significant assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Trial Attorney Conor Mulroe of the Criminal Division’s Violent Crime and Racketeering Section and Assistant U.S. Attorney Christopher Rapp for the Eastern District of Texas are prosecuting the case.
The Justice Department’s Office of International Affairs worked with law enforcement partners in Romania to secure the arrest and extradition of Lazar.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Couple Charged for Operating Multimillion-Dollar Pyramid SchemeRead the Press Release
A federal grand jury in the Eastern District of Texas returned an indictment yesterday charging a Texas couple for operating an illegal pyramid scheme that defrauded thousands of participants of more than $10 million.
According to court documents, LaShonda Moore, 35, and Marlon Moore, 37, co-founded and ran an illegal pyramid scheme called Blessings in No Time (BINT). BINT was allegedly a chain-referral pyramid scheme that targeted the African American community during the COVID-19 pandemic with false and misleading promises that participants could expect 800% guaranteed returns and guaranteed refunds if participants were unsatisfied with the program.
The Moores allegedly organized BINT’s payment scheme with “playing boards” that had eight Fire positions, four Wind positions, two Earth positions, and one Water position. As alleged, players in the Fire position advanced on the board by paying at least $1400 to the person in the Water position and recruiting two new Fire-level participants, at which point the cycle would repeat. In other words, eight new participants had to be recruited into the scheme for a single earlier participant to receive a return on their initial investment. The Moores allegedly placed themselves and their family members in the Water position on multiple playing boards to receive the payments from participants in the Fire position and collected a substantial sum from participants’ monthly user fees, which were required for participation in BINT.
The Moores are charged with conspiracy to commit wire fraud, wire fraud, and money laundering. If convicted, they each face a maximum penalty of 20 years in prison for each wire fraud count and 10 years in prison for each money laundering count.
Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, U.S. Attorney Damien M. Diggs for the Eastern District of Texas, Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group, Acting Special Agent in Charge Christina Foley of the U.S. Secret Service Dallas Field Office, and Special Agent in Charge Christopher J. Altemus Jr. of the IRS Criminal Investigation (IRS-CI) Dallas Field Office made the announcement.
USPIS, U.S. Secret Service, and IRS-CI are investigating the case.
Trial Attorney Theodore M. Kneller and Assistant Chief William Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Nathaniel Kummerfeld for the Eastern District of Texas are prosecuting the case. The department received assistance from the Federal Trade Commission and the Texas Attorney General’s Office.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at [email protected]. To learn more about victims’ rights, please visit www.justice.gov/criminal/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Houston felon sentenced to federal prison for firearms violation in Jefferson CountyRead the Press Release
BEAUMONT, Texas– A Houston man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Ashton Jherimiah Robertson, 25, pleaded guilty to possession of a firearm by a prohibited person and was sentenced to 63 months in federal prison by U.S. District Judge Marcia A. Crone on Oct. 31, 2023.
According to information presented in court, on May 7, 2021, Robertson was pulled over in Beaumont for not wearing a seatbelt. During the stop, law enforcement officers discovered Robertson had outstanding warrants from Beaumont and Harris County. Robertson was arrested and the vehicle was searched. During the search, officers discovered a firearm. Further investigation revealed Robertson was a previously convicted felon and prohibited from owning or possessing firearms or ammunition.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Rachel Grove.
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Hardin County man sentenced to federal prison for bank robberyRead the Press Release
BEAUMONT, Texas– A Kountze man has been sentenced to federal prison for bank robbery in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Timothy Shane Mitchell, 39, pleaded guilty to bank robbery and was sentenced to 87 months in federal prison by U.S. District Judge Marcia Crone on Oct. 31, 2023.
According to information presented in court, on June 6, 2022, Mitchell robbed the Lumberton branch of the Community Bank of Texas. Mitchell approached a teller’s station at the bank and gave the teller a note demanding money. Mitchell told the teller he had a gun, which he threatened to use if she alerted authorities. The teller gave Mitchell a stack of currency and he left the bank. The teller immediately activated the panic button alerting police to the robbery. Witnesses were able to describe Mitchell’s vehicle, which was apprehended shortly after the robbery. Mitchell was arrested and the $5,860 in currency was recovered at that time.
This case was investigated by the Lumberton Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
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Harris County man sentenced for trafficking meth in Jefferson CountyRead the Press Release
BEAUMONT, Texas – A Seabrook man has been sentenced to federal prison for trafficking drugs in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Justin Hall McSpadden, 45, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to 235 months in federal prison by U.S. District Judge Marcia A. Crone on October 20, 2023.
According to information presented in court, on October 1, 2021, McSpadden sold four ounces of methamphetamine for $1,200.00 to an individual at the Petro Truck Stop located at 5405 Walden Road in Beaumont. Later that same day, law enforcement conducted a traffic stop on McSpadden on Cardinal Drive in Beaumont. During the traffic stop, law enforcement located an additional two ounces of methamphetamine inside a toolbox in the vehicle and a handgun on the driver’s side floorboard. McSpadden was indicted and charged with federal drug trafficking violations.
This case was investigated by the U.S. Drug Enforcement Administration and the Jefferson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Michael A. Anderson.
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Dallas brothers sentenced for fraud scheme in the Eastern District of TexasRead the Press Release
PLANO, Texas – Two Dallas brothers have been sentenced for federal violations related to a fraud scheme in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
Thomas Hughes Page, 47 and Jon Phillip Page, Jr., 55, were convicted at trial of conspiracy to commit bank fraud and conspiracy to commit money laundering and sentenced on Oct. 18, 2023, by U.S. District Judge Sean D. Jordan. Thomas Page was sentenced to 71 months in federal prison and Phillip Page was sentenced to 63 months in federal prison. The defendants were ordered to pay restitution of $3.2 million.
According to information presented at trial, between 2010 and 2017, the defendants used their company, Page Capital Group, to obtain multiple loans from PlainsCapital Bank (PCB), representing that the loans would be secured by a brokerage account worth at least $2 million. However, neither Thomas Page nor Phillip Page had access to such funds, as the brokerage account was never actually funded. Thomas Page and Phillip Page directed and paid a third individual, Clayton Wertz, to create and submit to PCB fraudulent brokerage statements for the brokerage account reflecting significant value. Once Thomas Page and Phillip Page received the money from PCB, they used the funds on various business and personal expenses. In addition, Thomas Page and Phillip Page took affirmative steps, such as providing occasional payments on the loan, to conceal and disguise their activity. As a result of the fraudulent conduct, the bank loaned Page Capital approximately $3.6 million and eventually lost approximately $3.25 million over the course of the scheme.
“The U.S. Attorney’s Office takes bank fraud seriously,” said U.S. Attorney Damien M. Diggs. “This type of crime can affect the security and soundness of FDIC-insured banks, and we all pay the price when banks lose money due to fraud. Along with the FBI, this office will investigate and prosecute bank fraud and related crimes to protect the financial system and prevent losses to our banking institutions.”
“Financial Institution Fraud is not a victimless crime. It hurts lending institutions and negatively impacts borrowers who are seeking genuine loans for their businesses,” said FBI Dallas Special Agent in Charge Chad Yarbrough. “The defendants used their ill-gotten gains for their personal benefit without regard for the consequences. Today’s sentence demonstrates that the FBI will pursue anyone that attempts to defraud financial institutions, investors, or the public.”
This case was investigated by the FBI – Frisco Resident Agency and prosecuted by Assistant U.S. Attorneys in the Plano office.
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Pharmaceutical production manager sentenced in counterfeit drug trafficking conspiracyRead the Press Release
BEAUMONT, Texas – A Houston man who served as a production manager in a counterfeit drug trafficking scheme has been sentenced to federal prison for drug trafficking and money laundering violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Willis Reed, 61, pleaded guilty to conspiracy and was sentenced to 60 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to the indictment, from April 2014 until August 2021, Reed conspired with ten others including Adam P. Runsdorf, the owner and president of Woodfield Pharmaceutical LLC based in Boca Raton, Florida.
According to information presented in court, Reed was a production manager and director of technical operations at Woodfield Pharmaceutical’s manufacturing facility in Houston, where employees produced more than 500,000 pints of counterfeit cough syrup for Byron Marshall, a Houston drug trafficker. Marshall’s drug trafficking organization sold the counterfeit drugs across Texas, Louisiana, Mississippi, Alabama, Georgia, South Carolina, Tennessee, Wisconsin, California, Florida, Arkansas, and Ohio. Prices generally ranged from $100 to more than $1,000 per one-pint bottle. Depending on the market and brand of cough syrup, prices went as high as $3,800 to $4,000 per pint.
All eleven defendants charged in the indictment, including Reed, pleaded guilty. All eleven have been sentenced. Byron A. Marshall, Tunji Campbell, and Adam Runsdorf pleaded guilty to conspiracy, trafficking in counterfeit drugs, and money laundering conspiracy. Marshall was sentenced to 300 months in federal prison. Campbell, who partnered with Marshall to hatch the scheme, was sentenced to 135 months imprisonment. Runsdorf was sentenced to 72 months imprisonment and ordered to forfeit $5 million and a McLaren sportscar. Chauntell D. Brown pleaded guilty to conspiracy and trafficking in counterfeit drugs and was sentenced to 72 months imprisonment. In addition to Reed, Cheryl A. Anderson, Ashley A. Rhea, Maria Anzures-Camarena, Kalpen Patel, and Jonathan Shaver each pleaded guilty to conspiracy and were sentenced to 60 months imprisonment. Gina Acosta pleaded guilty to conspiracy and was sentenced to 40 months imprisonment. Reed was the last defendant to be sentenced in the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the Drug Enforcement Administration; U.S. Food and Drug Administration Office of Criminal Investigations; Internal Revenue Service-Criminal Investigation; Federal Bureau of Investigation; U.S. Marshals Service; Houston Police Department; Galveston Police Department; Galveston County Sheriff’s Office; Dickinson Police Department; League City Police Department; Pearland Police Department; Pasadena Police Department; Texas City Police Department; Harris County Precent #2; Brazoria County Sheriff’s Office; Fort Bend County Sheriff’s Office; Liberty County Sheriff’s Office; and the Texas National Guard. This case was prosecuted by Assistant U.S. Attorneys John B. Ross, Jonathan C. Lee, and Robert Wells.
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California man sentenced to federal prison for role in health care kickback conspiracyRead the Press Release
TEXARKANA, Texas – A Temecula, California, man has been sentenced to federal prison for conspiring to commit health care kickbacks, announced U.S. Attorney Damien M. Diggs today.
Steven Donofrio, 49, was found guilty by a jury on May 5, 2023, following a two-week-long trial. Donofrio was sentenced to 42 months in federal prison by U.S. District Judge Robert W. Schroeder, III on October 11, 2023.
“Donofrio leveraged the access, influence, and relationships that his employees wielded to secure physicians’ referrals. He added costs, not value, to an overburdened, taxpayer-funded system. The taxpayers deserve better,” said U.S. Attorney Damien M. Diggs. “Today’s sentence sends the clear message that no matter who you are, if you do wrong, you will be found out, and you will be brought to justice.”
“While this health care fraud scheme appeared complex on the surface, it was simple greed and theft at its core,” said Jason E. Meadows, Special Agent in Charge of the United States Department of Health and Human Services Office of Inspector General (HHS-OIG). “Illegal kickback payments lead to unnecessary medical procedures and cost taxpayers millions of dollars. HHS-OIG will continue to work with our law enforcement partners to hold accountable those who blatantly steal taxpayer money for their personal benefit.”
“Today’s sentence brings a conclusion to an illegal kickback scheme that defrauded our health care system for millions of dollars. The defendant and his co-conspirators enriched themselves and in turn affected the quality of care of innocent taxpayers,” said FBI Dallas Special Agent in Charge Chad Yarbrough. “The FBI is committed to working with our law enforcement, public, and private sector partners to combat health care fraud and seek justice for the patients that are harmed because of these schemes.”
According to information presented in court, Donofrio conspired with others to pay and receive kickbacks in exchange for the referral of, and arranging for, health care business, specifically pharmacogenetic (PGx) tests. Pharmacogenetic testing, also known as pharmacogenomic testing, is a type of genetic testing that identifies genetic variations that affect how an individual patient metabolizes certain drugs. The illegal arrangement concerned the referral of PGx tests to clinical laboratories in Fountain Valley, California; Irvine, California; and San Diego, California. More than $28 million in illegal kickback payments were exchanged by those involved in the conspiracy.
In December 2019, twelve individuals from three states were charged for their roles in the kickback conspiracy. A federal grand jury in the Eastern District of Texas returned an indictment against Philip Lamb, of Eagle, Colorado; Nicolas Arroyo, of Tempe, Arizona; Vincent Marchetti, Jr., of Coronado, California; William Flowers, of Houston, Texas; Steven Donofrio; James J. Walker, Jr. a/k/a Jimmy Walker, of Frisco, Texas; Timothy Armstrong, deceased, formerly of Frisco, Texas; Virginia Blake Herrin, of Frisco, Texas; Patrick Ridgeway, of Jackson, Mississippi; Chismere Mallard, of McAllen, Texas; Dr. Ray W. Ng, of Dallas, Texas; and Ashley Kretzschmar, of Aledo, Texas; for conspiring to commit illegal remunerations in violation of the Anti-Kickback Statute.
Philip Lamb, Nicolas Arroyo, Jimmy Walker, Timothy Armstrong, Virginia Blake Herrin, Patrick Ridgeway, Chismere Mallard, and Ashley Kretzschmar pleaded guilty prior to trial. Kimberly Willette, of Friendswood, Texas, and Edwin Chad Isbell, of Atascocita, Texas also pleaded guilty to related charges.
Vincent Marchetti, Jr., was found guilty by a jury on December 16, 2021, following a month-long trial. He was sentenced to 48 months in federal prison on August 30, 2022.
On April 25, 2022, Nicolas Arroyo was sentenced to 21 months in federal prison. On August 23, 2022, Kimberly Willette was sentenced to one year and one day in federal prison, and Patrick Ridgeway was sentenced to a three-year term of probation and ordered to pay a $100,000 fine. On September 11, 2023, Jimmy Walker was sentenced to five months in federal prison and ordered to pay a $50,100 fine.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remunerations in exchange for the referral of or arranging for or recommending the ordering of items or services payable under federal health care programs. Under federal statutes, violations of the Anti-Kickback statute are punishable by up to five years in federal prison.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, and the FBI Dallas – Frisco Resident Agency. It was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld, Lucas Machicek, and Adrian Garcia, with assistance from Assistant U.S. Attorneys Stephan E. Oestreicher, Jr., Brent Andrus, and L. Frank Coan, Jr., and Special Assistant U.S. Attorney Laurel E.P. Simmons.
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Bowie County man sentenced to federal prison for ATM burglariesRead the Press Release
TEXARKANA, Texas – A Texarkana man has been sentenced to prison for federal violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Lamarcus Vontino Moore Jr., 21, pleaded guilty to conspiracy to commit bank theft and was sentenced to 18 months in federal prison and ordered to pay restitution of $257,789 and forfeiture of $33,665 by U.S. District Judge Robert W. Schroeder III on October 12, 2023.
According to information presented in court, Moore conspired with others to burglarize ATMs (automated teller machines) in the Bowie County area. On Jan. 26, 2021, an ATM located at the Texar Federal Credit Union on Gibson Lane in Texarkana, Texas, was burglarized and approximately $127,654.00 was stolen. On Feb. 2, 2021, an ATM located at the Texar Federal Credit Union on W. 7th Street in Wake Village, Texas, was also burglarized and approximately $10,513.00 was stolen. In each burglary, one of the co-conspirators stole a pickup truck and then the defendants attached chains to the ATM and used the stolen truck to break open the ATM. There was approximately $60,000 in damage done to each ATM. The other six defendants have already been sentenced.
This case was investigated by the Federal Bureau of Investigation, the Wake Village Police Department, the Texarkana Police Department, and the Queen City Police Department. This case was prosecuted by Assistant U.S. Attorney Alan R. Jackson.
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Arkansas man sentenced for trafficking meth through Liberty CountyRead the Press Release
BEAUMONT, Texas – A Little Rock, Arkansas man has been sentenced to federal prison for trafficking drugs in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Nicholas Iron Wilson, 27, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to 210 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on September 15, 2021, Wilson was stopped by law enforcement officers near a truck stop in Cleveland, Texas. During the stop, law enforcement noticed a strong odor of marijuana. A search of the vehicle revealed two large plastic bags on the back floorboard containing 596 grams of methamphetamine. Wilson was indicted and charged with federal drug trafficking violations.
This case was investigated by the U.S. Drug Enforcement Administration and the Liberty County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Michael A. Anderson.
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Mexican national sentenced to 27 years in federal prison for East Texas drug trafficking violationsRead the Press Release
SHERMAN, Texas – A Mexican national has been sentenced to 27 years in federal prison for trafficking drugs through the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Fernando Alfredo Rodriguez-Reyes, 29, pleaded guilty to conspiracy to distribute meth, heroin and cocaine, and conspiracy to commit money laundering and was sentenced to 324 months in federal prison today by U.S. District Judge Amos L. Mazzant.
According to information presented in court, on June 18, 2020, Rodriguez-Reyes was arrested when law enforcement agents executed a search warrant at a residence on Lytham Drive in Dallas. The residence had been identified as a money and drug stash house distributing multi-kilogram quantities of cocaine, methamphetamine, and heroin in the Dallas, Lewisville, McKinney, Carrollton, Fort Worth, and Plano areas. During the investigation it was discovered the drugs were sourced by a party in Mexico, with ties to the Sinaloa Cartel, and shipped from Mexico, to California, and eventually to the greater Dallas area.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by the Drug Enforcement Administration in Dallas and prosecuted by Assistant U.S. Attorney Ernest Gonzalez.
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Denton County man sentenced to 20 years in federal prison for child pornography violationsRead the Press Release
SHERMAN, Texas – A Denton County man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs.
James Buck Briggs, 49, of The Colony, pleaded guilty to two counts of distributing child pornography and was sentenced to 240 months in federal prison today by U.S. District Judge Amos Mazzant.
According to public information, in December 2021, an undercover law enforcement officer encountered Briggs in an online chat room dedicated to the sexual abuse of children. Briggs and the undercover officer began a chat which resulted in Briggs sending the officer a video depicting child pornography involving a very young female victim. The undercover officer was able to trace the IP address to Briggs’ residence in The Colony and a search warrant was executed. A search of Briggs’ cellular phone revealed hundreds of images which contained child pornography. Briggs was indicted by a federal grand jury on Jan. 20, 2022.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the FBI’s Frisco Field Office and the Plano Police Department and prosecuted by Assistant U.S. Attorneys Maureen Smith, Lesley Brooks and Marisa Miller.
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Texarkana Man Sentenced to 30 Years in Federal Prison for Distributing Fentanyl Resulting in DeathRead the Press Release
TEXARKANA, Texas – A Texarkana man who sold thousands of fake oxycontin pills that contained fentanyl has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Terrance Lamar Peacock, also known as T, 32, pleaded guilty to conspiracy to possess with intent to distribute fentanyl resulting in death. Peacock was sentenced to 370 months in federal prison today by U.S. District Judge Robert W. Schroeder III.
According to information presented in court, between November 2018 and March 2022, Peacock conspired with at least three others, including his brother Michael Peacock, to distribute fentanyl, methamphetamine, marijuana, and a synthetic opioid known as U-47700.
Peacock and his co-conspirators distributed thousands of blue pills stamped to mimic 30mg oxycontin pills, known on the streets as “M-30s,” but the pills were counterfeits that instead contained fentanyl. Peacock and his co-conspirators also sold thousands of pills marketed as ecstasy but contained methamphetamine and caffeine. Three victims died and one had to be resuscitated after being administered Narcan after ingesting fake M-30 pills containing fentanyl that they had purchased directly from either Terrance Peacock or his brother, Michael Peacock. Multiple firearms were seized from the defendants during the execution of search warrants at their homes and stash houses.
“Fentanyl kills indiscriminately, and this defendant chose to sell counterfeit M-30 pills that ultimately claimed the lives of three victims,” said U.S. Attorney Damien M. Diggs. “The defendant recognized the inevitable consequences of peddling poison and chose greed over the preciousness of life. Today’s significant sentence should send a powerful message to those who choose to distribute fentanyl resulting in death—the Eastern District of Texas will aggressively prosecute these cases to assist in combatting the opioid epidemic that has claimed the lives of so many victims.”
Michael Peacock and Justin Owens have pleaded guilty and are awaiting sentencing. Codefendant Deablo Lewis is scheduled for trial in January 2024.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the Texarkana Texas Police Department, the Texarkana Arkansas Police Department, the Texas Department of Public Safety Criminal Investigations Division, the U.S. Drug Enforcement Administration, and the U.S. Postal Inspection Service. This case was prosecuted by Assistant U.S. Attorneys Jonathan Hornok and Ryan Locker.
Jefferson County Man Sentenced for Methamphetamine TraffickingRead the Press Release
BEAUMONT, Texas – A Groves man has been sentenced to federal prison for trafficking drugs in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Dustin Joseph Collins, 40, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to 121 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on November 9, 2021, Collins was stopped by law enforcement officers on Highway 69 southbound to Port Arthur. During the stop, a police canine alerted on the vehicle causing Collins to flee the scene. Collins ran across the freeway through traffic before being apprehended. A search of Collins’ vehicle revealed a backpack with over 231 grams of methamphetamine.
This case was investigated by the U.S. Drug Enforcement Administration and the Port Arthur Police Department and prosecuted by Assistant U.S. Attorney Michael Anderson.
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Ringleader Sentenced to 25 Years for Counterfeit Drug Trafficking ConspiracyRead the Press Release
BEAUMONT, Texas – A Houston man who led a counterfeit drug trafficking scheme has been sentenced to federal prison for drug trafficking and money laundering violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Byron A. Marshall, 45, pleaded guilty to conspiracy, trafficking in counterfeit drugs, and money laundering conspiracy and was sentenced to 300 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to the indictment, from April 2014 until August 2021, Marshall conspired with ten others including Adam P. Runsdorf, the owner and president of Woodfield Pharmaceutical LLC based in Boca Raton, Florida.
According to information presented in court, Marshall utilized Woodfield Pharmaceutical’s manufacturing facility and employees in Houston to produce more than 500,000 pints of counterfeit cough syrup. Marshall’s drug trafficking organization sold the counterfeit drugs across Texas, Louisiana, Mississippi, Alabama, Georgia, South Carolina, Tennessee, Wisconsin, California, Florida, Arkansas, and Ohio. Prices generally ranged from $100 to more than $1,000 per one-pint bottle. Depending on the market and brand of cough syrup, prices went as high as $3,800 to $4,000 per pint.
During the conspiracy, Marshall communicated directly with Runsdorf regarding production of the counterfeit cough syrup. At Runsdorf’s request, Marshall paid Woodfield Pharmaceutical in cash only, and Woodfield employees mailed the cash directly to Runsdorf in Boca Raton.
“Mr. Marshall was the ringleader of a drug trafficking organization responsible for selling counterfeit drugs across most of the southeastern United States and many other states,” said U.S. Attorney Damien M. Diggs. “Drug trafficking organizations like this are a cancer to our nation and present a substantial threat to our communities. Today’s significant sentence should send a clear message to such organizations that the Eastern District of Texas along with our federal, state, and local law enforcement partners will remain laser-focused on crippling drug trafficking organizations that choose to distribute drugs and other poisons in our communities.”
All eleven defendants charged in the indictment pleaded guilty. Eight have been sentenced including Marshall. Adam Runsdorf and Tunji Campbell pleaded guilty to conspiracy, trafficking in counterfeit drugs, and money laundering conspiracy. Campbell, who partnered with Marshall to hatch the scheme, was sentenced to 135 months imprisonment. Runsdorf was sentenced to 72 months imprisonment and ordered to forfeit $5 million and a McLaren sportscar. Chauntell D. Brown pleaded guilty to conspiracy and trafficking in counterfeit drugs and was sentenced to 72 months imprisonment. Cheryl A. Anderson, Ashley A. Rhea, Maria Anzures-Camarena and Kalpen Patel, each pleaded guilty to conspiracy and were sentenced to 60 months imprisonment. Three others are awaiting sentencing.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the Drug Enforcement Administration; U.S. Food and Drug Administration Office of Criminal Investigations; Internal Revenue Service-Criminal Investigation; Federal Bureau of Investigation; U.S. Marshals Service; Houston Police Department; Galveston Police Department; Galveston County Sheriff’s Office; Dickinson Police Department; League City Police Department; Pearland Police Department; Pasadena Police Department; Texas City Police Department; Harris County Precent #2; Brazoria County Sheriff’s Office; Fort Bend County Sheriff’s Office; Liberty County Sheriff’s Office; and the Texas National Guard. This case was prosecuted by Assistant U.S. Attorneys John B. Ross, Jonathan C. Lee, and Robert A. Wells.
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Hardin County Man Sentenced for Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – A Silsbee man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Michael Joseph Fontenot, 51, pleaded guilty to possessing child pornography and was sentenced to 78 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to public information, an investigation by the Denver Innocent Images Task Force into individuals viewing and downloading child pornography through a social media application led to Fontenot in Hardin County, Texas. A search warrant was executed by federal law enforcement at Fontenot’s residence and several electronic devices were seized, including a cell phone, tablet, flash drives and a laptop. A forensic review of the items revealed over 600 images of child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Rachel Grove.
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Orange County Man Convicted of Federal Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – A Bridge City man has been convicted of federal child pornography violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Dereck Wayne Winstead, 34, was found guilty by a jury of possession of child pornography following a trial before U.S. District Judge Marcia A. Crone on September 12, 2023.
According to information presented in court, in 2020, federal agents received two cyber tips from the National Center for Missing and Exploited Children (NCMEC) with information that an individual in Orange County, Texas, had been accessing and possessing images of child pornography. An investigation revealed the accounts accessing the child pornography were connected to Winstead. On March 30, 2022, law enforcement officers conducted a consensual search at Winstead’s residence and located four electronic devices, including a custom-built gaming computer. A search of the custom-built gaming computer by a computer forensic analyst revealed over 300 images of child pornography including images of children under the age of 12.
Under federal statutes, Winstead faces up to 20 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations Beaumont Resident Agency and prosecuted by Assistant U.S. Attorneys Rachel Grove and Jonathan Lee.
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Mexican National Sentenced to Federal Prison for East Texas Drug TraffickingRead the Press Release
TYLER, Texas - A Mexican national has been sentenced to federal prison for trafficking drugs through the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Leobardo Hernandez-Hernandez, 34, pleaded guilty to possession with intent to distribute methamphetamine and was sentenced to 160 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to information presented in court, in March 2022, Hernandez supplied more than 150 grams of methamphetamine, cocaine, and marijuana to drug dealers at a stash house located in Gregg County, Texas. Hernandez sourced the illegal drugs from wholesalers in California. Additionally, Hernandez possessed a shotgun in connection with his drug trafficking activities. Hernandez's co-conspirator, Joshua Lynn Craver, 35, of Longview, Texas was sentenced to 180 months in prison on November 3, 2022.
This case was investigated by the U.S. Drug Enforcement Administration, Gregg County Sheriff's Office, and Longview Police Department. The case was prosecuted by Assistant U.S. Attorney Lucas Machicek.
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Henderson County Man Sentenced for Child Obscenity ViolationsRead the Press Release
TYLER, Texas – The former mayor of Athens, Texas man has been sentenced to federal prison for child obscenity violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
James Monte Montgomery, 65, pleaded guilty to sending obscene materials to a minor on August 25, 2022, and was sentenced to 60 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to public information, on June 3, 2021, Montgomery was arrested after arriving at an undisclosed location after soliciting sex online with investigators posing as minors. In June of 2020, Montgomery, then the mayor of Athens, Texas, began communicating by text messaging with a person he believed to be a 15-year-old female. Montgomery sent messages to the child describing sexually explicit acts that he wanted to perform on the child and offering to pay the child if she would meet him and have sex with him.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation’s Tyler Field Office, with assistance from the Texas Department of Public Safety, Collin County Sheriff’s Office, and the Department of Homeland Security-Homeland Security Investigations. This case was prosecuted by Assistant U.S. Attorney Robert Austin Wells.
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Marion County Man Convicted of Human TraffickingRead the Press Release
TYLER, Texas - A Jefferson, Texas man has been convicted of federal sex trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Corey Johnson, 40, pleaded guilty to one count of conspiracy to commit sex trafficking today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, Johnson engaged in trafficking at least three victims between March 2020 and September 2020 in Texas, Louisiana, Tennessee, New York, and California. Johnson transported the victims and arranged transportation for the victims between various hotels and motels to perform commercial sex acts. Johnson recruited the victims by social media and threatened to harm them if they did not perform commercial sex acts for commercial sex customers. Johnson obtained customers by purchasing and posting advertisements on various internet websites.
Under federal statutes, Johnson faces up to life in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by Texas DPS Criminal Investigations Division. This case was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and Robert Austin Wells, with assistance from Trial Attorney Julie Pfluger of the Justice Department’s Civil Rights Division, Human Trafficking Prosecution Unit.
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Tarrant County Man Indicted for Trafficking Deadly FentanylRead the Press Release
PLANO, Texas – A Saginaw, Texas man has been indicted for federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Kevin Chase McCauley, 35, was named in a two-count indictment returned by a federal grand jury on August 9, 2023, charging him with conspiracy to distribute fentanyl and possession with intent to distribute fentanyl resulting in death. McCauley made his initial appearance this morning before U.S. Magistrate Judge Kimberly C. Priest Johnson.
According to the indictment and information presented in court, on March 8, 2023, law enforcement officers with the Denton County Sheriff’s Office responded to the scene of a reported overdose in Argyle, Texas. Upon arrival, officers discovered an individual who had died as the result of an apparent drug overdose. An autopsy revealed the person had died from the toxic effects of fentanyl. Further investigation identified McCauley as the person who supplied and sold the fentanyl resulting in the overdose death.
If convicted, McCauley faces from 20 years to life in federal prison.
This case is being investigated by the Denton County Sheriff’s Office CID, the U.S. Drug Enforcement Administration, and the Tarrant County Medical Examiner’s Office. This case is being prosecuted by Assistant U.S. Attorney Matthew T. Johnson.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Lubbock Man Sentenced to 25 Years in the Eastern District of Texas for Cocaine TraffickingRead the Press Release
SHERMAN, Texas - A Lubbock man has been sentenced to 25 years in federal prison for drug trafficking, announced Eastern District of Texas U.S. Attorney Damien M. Diggs today.
Javier Guerra, 45, pleaded guilty to conspiracy to possess with intent to distribute cocaine and was sentenced to 300 months in federal prison today by U.S. District Judge Amos L. Mazzant.
According to information presented in court, between 2017 and 2018, law enforcement officers seized 10 kilograms of cocaine and $1,664,620 in U.S. currency from drug traffickers. An investigation into the drug trafficking revealed the drugs were being imported from Mexico and transported from the Rio Grande Valley to St. Louis, Missouri; Danville, Virginia; Greenville, South Carolina; Atlanta, Georgia; Fort Meyers, Florida; and other areas. The investigation also revealed Mark Calzadias, Michael Calzadias, and Thomas Calzadias were the main sources of supply. It was determined that Guerra often ordered two shipments of cocaine per month for distribution in the Lubbock area. Those shipments contained from seven to 15 kilograms of cocaine each, with Guerra paying approximately $30,000 for each kilogram. Guerra maintained a storage unit in Lubbock where he kept the cocaine until distribution.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by the Drug Enforcement Administration in Dallas and Lubbock and the Texas Department of Public Safety. This case was prosecuted by Assistant U.S. Attorney Ernest Gonzalez.
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Colombian National Sentenced to Federal Prison for East Texas Drug TraffickingRead the Press Release
SHERMAN, Texas - A Colombian national has been sentenced to over 21 years in federal prison for trafficking drugs through the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Luis Fernando Toro Londono, also known as Don Alonso, La Vaca, and Don Hector, 56, of Medellin, Colombia, pleaded guilty to conspiracy to manufacture and distribute cocaine knowing it would be distributed in the United States and was sentenced to 262 months in federal prison today by U.S. District Judge Amos L. Mazzant.
According to information presented in court, in August 2017, federal drug agents were investigating a drug trafficking organization moving drugs from Colombia to Mexico via Costa Rica and Panama for eventual distribution of multi-ton quantities of cocaine in the United States. The organization used Go-Fast vessels and aircraft to transport most of their cocaine shipments to Central America and Mexico.
Londono was identified as a Colombian based cocaine investor, smuggler, and money launderer that coordinated the dispatch of large cocaine shipments and coordinated the movement of drug proceeds throughout multiple countries and several cities in the United States.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by the Drug Enforcement Administration in Dallas and Colombia and prosecuted by Assistant U.S. Attorney Ernest Gonzalez.
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Collin County Man Sentenced to Life in Federal Prison for Crimes Related to Carrollton MurderRead the Press Release
SHERMAN, Texas – An Allen man, convicted of multiple federal violations related to a fraud scheme that included the murder of a Carrollton man, has been sentenced to life in federal prison, announced Eastern District of Texas U.S. Attorney Damien M. Diggs.
Keith Todd Ashley, 51, was found guilty by a jury of wire fraud, mail fraud, carrying a firearm in relation to a crime of violence and bank fraud in October 2022. Ashley was sentenced to life in federal prison today by U.S. District Judge Amos L. Mazzant.
According to information presented at trial, beginning in 2016, Ashley, a registered nurse who also began working as a financial advisor and life insurance agent, started stealing money from his clients. Ashley promised his clients he would invest their money in financial products but instead used the funds to pay other clients, to keep his struggling brewery in business, to pay his personal bills and to fund a lavish lifestyle. In May 2016, Ashley began stealing investment funds from a Carrollton man. This scheme included transferring the client’s money into his personal accounts and changing the beneficiary of the man’s life insurance to a trust controlled by Ashley. The scheme eventually resulted in the Feb. 19, 2020, murder of the client, which Ashley attempted to stage as a suicide. Even after the client was killed, Ashley went through elaborate steps to collect on the life insurance policy, transfer funds from the victim’s bank account to himself, and attempt to obtain a copy of the victim’s autopsy report. Ashley was indicted by a federal grand jury on Nov. 12, 2020, and has been charged with various federal violations, including wire fraud, mail fraud and firearms violations.
“Today’s sentence brings a sense of relief and justice to the victim’s family and friends, who have endured pain and grief as a result of the defendant’s horrific actions,” said U.S. Attorney Damien M. Diggs. “Mr. Ashley’s actions of defrauding and ultimately taking the victim’s life is reprehensible and indefensible. I’m grateful to our local and federal law enforcement partners who worked tirelessly on this case. Their dedication was essential in bringing this defendant to justice.”
“Keith Ashley funded his lavish lifestyle and attempted to rescue his failing business by robbing his clients of financial security, and when that wasn’t enough, he robbed one of his life,” said Dallas FBI Special Agent in Charge Chad Yarbrough. “Many local and federal resources came together to seek justice for the victims, and our hope is that today’s sentence can bring continued healing to the families and friends who will be forever impacted by the greed and deceit caused by the defendant.”
This case was investigated by the Federal Bureau of Investigation – Frisco Resident Agency, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Dallas County District Attorney’s Office, and the Carrollton Police Department. This case was prosecuted by Assistant U.S. Attorneys Heather Rattan and Jay Combs and Special Assistant U.S. Attorney Jason Fine.
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Mexican National Sentenced to 25 Years in Federal Prison for East Texas Drug TraffickingRead the Press Release
SHERMAN, Texas - A Mexican national has been sentenced to 25 years in federal prison for trafficking drugs through the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Eduardo Fernando Martinez-Gonzalez, 33, pleaded guilty to conspiracy to distribute methamphetamine and was sentenced to 300 months in federal prison today by U.S. District Judge Amos L. Mazzant. Martinez-Gonzalez was also sentenced to 240 months in federal prison for conspiracy to launder money. The sentences will run concurrently.
According to information presented in court, in July 2019, federal agents investigating the trafficking of multi-kilogram quantities of cocaine, methamphetamine, and heroin in the Dallas, Lewisville, McKinney, Carrollton, Fort Worth, and Plano, Texas, areas, determined that the drugs were sourced by an individual in Mexico with ties to the Sinaloa Cartel and that the drugs were shipped from Mexico to California and eventually to the greater Dallas area. During the investigation, Eduardo Fernando Martinez-Gonzalez, a/k/a Eduardo Torres-Hernandez, Eduardo Del Valle, Eduardo Del Valle Torres, and Lalo (Martinez-Gonzalez), was identified as a money launderer and illicit drug distributor for the drug trafficking organization in Dallas.
Martinez-Gonzalez was responsible for receiving, counting, and packaging the drug proceeds along with recruiting others and paying their rent to conduct drug trafficking activities at their residences. In one instance, in June 2020, federal agents observed a single axle trailer arrive at a stash house on South Waterview Street in Richardson, where Martinez-Gonzalez was seen unloading the trailer. Past observations indicated trailers would arrive at that location loaded with cocaine and heroin, be off-loaded, and then reloaded with U.S. currency and a “cover load” for delivery to Mexico. The trailers would leave that location and arrive at a location on Townsend Drive in Dallas, where an additional “cover load” was added before leaving for Mexico the following day. Agents followed the driver of the trailer to the Townsend location where it was seized. A search of the trailer revealed two large televisions, a hot water heater, a Louis Vuitton bag, and four boxes of ceramic tile. The bottom of the water heater had been cut out, and seven bundles were taped inside. The bundles contained $774,910 in U.S. currency and approximately 58 grams of an orange, oval, pill.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The case was investigated by the Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Ernest Gonzalez.
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Grand Prairie Man Sentenced to Federal Prison in Connection with Donut Shop RobberiesRead the Press Release
SHERMAN, Texas – A second man has been sentenced to federal prison in connection with a string of violent home invasion type robberies in the Eastern District of Texas, announced U.S. Attorney Damien M. Diggs today.
Kendrick Donnell Jones, Jr., 24, of Grand Prairie, pleaded guilty to conspiracy to interfere with interstate commerce by robbery; aiding and abetting; conspiracy to kidnap; using, carrying, and brandishing a firearm during and in relation to a crime of violence. Jones was sentenced to 262 months in federal prison today by U.S. District Judge Amos Mazzant. Last month, Tony Sullivan was sentenced to 25 years in federal prison for his role in the robberies.
According to information presented in court, the FBI began an investigation into a series of home invasion type robbery incidents between April 2019 and December 2019 that targeted owners and operators of donut stores in the Dallas-Fort Worth Metroplex area. The robberies occurred late in the evening or very early in the morning before the shopkeepers departed for work. The assailants would force their way into the home and assault the home’s occupants. Victims were often beat with baseball bats and bound with duct tape while being held at gunpoint. At least nine robberies have been attributed to this crime spree. Due to the times of the robberies coinciding with the times the victims would have been leaving their residences to open their businesses, agents concluded the suspects had to have conducted physical surveillance to determine where the victims lived and when the victims would have been leaving their residences. On the evening of July 8, 2019, officers in Euless, Texas, received a call from a witness reporting an individual stumbling down his street with his hands bound by tape. The victim had a bleeding head wound and was transported to a hospital. The victim advised he returned home from his donut shop in Dallas to find two suspects in his residence. He was bound and beat with a baseball bat and ordered to open a safe. The assailants left with the victim’s car keys, cellular phone, approximately $9,500 from the safe, and approximately $900 from his wallet. Law enforcement agents utilized footage from surveillance videos, cell phone site data, and data extracted from cellular phones to determine Jones participated in the attack.
This case was investigated by the Federal Bureau of Investigation’s Dallas Violent Crimes Task Force, which includes the Dallas Police Department, the Garland Police Department, the Grand Prairie Police Department, the Richardson Police Department, and the Texas Department of Public Safety. Other investigating agencies who assisted in the investigation are the Bureau of Alcohol Tobacco and Firearms (ATF), the Carrollton Police Department, the Coppell Police Department, the Dallas Police Department, the Dalworthington Gardens Police Department, the Euless Police Department, and the Flower Mound Police Department. The case was prosecuted by Assistant U.S. Attorney Ernest Gonzalez.
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