Eastern District of Texas
Press releases recorded for this federal judicial district.
Jefferson County Man Sentenced for Federal Drug Trafficking ViolationsRead the Press Release
ABEAUMONT, Texas - A Beaumont man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Patrick Dwayne Gipson, 38, pleaded guilty on March 2, 2022, to conspiracy to possess with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine and was sentenced to 119 months in federal prison by U.S. District Judge Marcia A. Crone on Feb. 14, 2023.
According to information presented in court, on Feb. 6, 2020, local law enforcement officers executed a search warrant at a Beaumont residence controlled by Gipson and others. Through the investigation, law enforcement seized thousands of pills, purported to be ecstasy, that contained methamphetamine.
Gipson is the last defendant of the conspiracy to be sentenced. Earlier this month, Travion Dewayne Parkerson was sentenced to 97 months in federal prison; Wendall James Kirtman was sentenced to 84 months in federal prison; and Kobe Jashawn Grimes was sentenced to 70 months in federal prison.
This case was investigated by the Beaumont Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson County Regional Crime Laboratory. This case was prosecuted by Assistant U.S. Attorney Jonathan C. Lee.
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Houston County Man Sentenced to 10 Years in Solicitation of Murder PlotRead the Press Release
TYLER, Texas – A Grapeland, Texas man, and his girlfriend, have been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Reynaldo Campos, Jr., 45, pleaded guilty on August 12, 2022, to murder for hire and was sentenced to 120 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to the indictment, on Feb. 9, 2022, Campos contacted an individual who he believed was a hitman, but who was in fact an undercover federal agent, and solicited the “hitman” to murder a former associate of Campos, claiming the intended victim had either stolen drugs from him or owed him money. Campos discussed the intended murder with the agent on multiple occasions over the next several weeks. On April 8, 2022, Campos and his girlfriend, Robin Pittman, traveled together from Houston County to Tyler to discuss the murder, to provide the “hit man” with a handgun to be used for the murder, and to provide the “hit man” with information about the intended victim. On April 13, 2022, Campos and Pittman again traveled together from Houston County to Tyler to discuss the murder and to provide the “hit man” with approximately one gallon of Phenylacetone/P2P, which is a chemical used in the manufacture of methamphetamine, and a shotgun as partial payment for the murder of the intended victim.
Campos and Pittman were indicted by a federal grand jury on April 21, 2022. Pittman, also known as Robin Hill, 42, of Grapeland, pleaded guilty on August 9, 2022, to possession of a firearm in furtherance of a drug trafficking crime and was sentenced to 60 months in federal prison today by Judge Kernodle.
This case was investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Jim Noble.
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Dallas Brothers Convicted of Federal Violations in the Eastern District of TexasRead the Press Release
PLANO, Texas – Two Dallas brothers have been found guilty of federal violations related to a fraud scheme in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
On Feb. 13, 2023, Thomas Hughes Page, 46 and Jon Phillip Page, Jr., 54, were found guilty by a jury of conspiracy to commit bank fraud and conspiracy to commit money laundering following a six-day trial before U.S. District Judge Sean D. Jordan.
According to information presented at trial, between approximately 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.
“These two brothers disguised and lied to financial institutions in order steal large amounts of money for their personal use, depriving others of the legitimate business use of the money,” said U.S. Attorney Featherston. “Keeping all the balls (lies) in the air only lasts until the FBI comes knocking, then the balls come crashing down. The FBI and prosecutors in this case did an outstanding job investigating and prosecuting the case.”
“The defendants knowingly used deceptive methods to obtain a loan from a financial institution that was used for their personal benefit, in order to keep their illicit scheme afloat,” said FBI Dallas Acting Special Agent in Charge James J. Dwyer. “Financial Institution Fraud not only hurts the lender, but also innocent borrowers who are seeking genuine loans for their businesses. The FBI is committed to pursuing anyone that attempts to defraud financial institutions, investors, or the public.”
The defendants face up to 30 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 Federal Bureau of Investigation – Frisco Resident Agency and prosecuted by Assistant U.S. Attorneys in the Plano office.
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Final Red River Army Depot Defendant Sentenced in Federal Bribery, Theft and Fraud SchemeRead the Press Release
TEXARKANA, Texas – The final defendant has been sentenced in a federal bribery, theft and fraud scheme at the Red River Army Depot (RRAD) in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Jimmy Scarbrough, 71, of Hooks, pleaded guilty on August 22, 2022, to conspiring with others to defraud the United States, commit theft of government property, and commit bribery. He was sentenced to 48 months in federal prison today by U.S. District Judge Robert W. Schroeder, III. Scarbrough was also ordered to forfeit his 1951 Ford F-1 pickup truck and $229,000 cash.
In September of 2022, Jeffrey Harrison, a former RRAD vendor, was sentenced to 30 months in federal prison and ordered to forfeit $300,000; Justin Bishop, a former RRAD vendor was sentenced to 12 months and 1 day in federal prison and ordered to forfeit $55,000; Devin McEwin, a former RRAD official was sentenced to a five-year term of federal probation, including eight months of home confinement and ordered to forfeit $21,000; and Louis Singleton, a former RRAD official was sentenced to five years of federal probation, including eight months of home confinement, and was ordered to forfeit $18,000.
“Scarbrough sold his position of public trust for personal gain, all at the expense of the hard-working men and women at the RRAD who support our armed forces around the globe,” said U.S. Attorney Brit Featherston. “We will continue vigorously uprooting corruption and fraud at the RRAD and the vendors that support its mission.”
“Today's sentencing is a fitting end for those who conspire to defraud the United States Army,” said Special Agent in Charge L. Scott Moreland of the Department of the Army Criminal Investigation Division’s Major Procurement Fraud Field Office. “Army CID is proud to work with our federal law enforcement partners to protect the coffers of the U.S. government from those who break the law and threaten the readiness of our Service.”
“Today’s sentence concludes the tireless work and dedication of multiple agencies to hold a group of people accountable for attempting to defraud and profit off the United States government,” said FBI Dallas Acting Special Agent in Charge, James J. Dwyer. “The public can rest assured that we remain committed to aggressively pursuing anyone that uses government programs for their own personal gain.”
According to information presented in court, Scarbrough was the Equipment Mechanic Supervisor at the RRAD in Texarkana, Texas, a position he held from November 2001 until May 2019. Scarbrough directed more than $7 million in purchases from RRAD to Harrison and Bishop through the government purchase card (GPC) program. In order to manipulate the GPC program, which is designed to ensure a competitive bidding process, Scarbrough told the vendors what to bid, including the item, the quantity, and the price. By collecting fake bids from multiple vendors, Scarbrough was able to direct RRAD purchases to his select vendors, in this case Harrison and Bishop, while maintaining the appearance of a competitive bidding process. Scarbrough also defrauded the United States by falsely certifying that he had received the purchased items, therefore causing the RRAD to pay his select vendors. However, the reality was that Scarborough instructed the vendors not to deliver certain RRAD-purchased items.
Scarbrough demanded hundreds of thousands of dollars in bribes from his selected vendors. Scarbrough accepted bribes in various forms, including receiving at least $116,000.00 in U.S. Postal Service money orders from Harrison. Scarbrough also had Harrison and Bishop purchase at least $135,000.00 in car parts or services for his hot rod collection, which included a red and black 1936 Ford Tudor, an electric green 1932 Ford Coupe, a cherry red 1951 Ford F-1 truck, and more. Scarbrough received more than $27,000.00 worth of firearms from Bishop, including rare Colt handguns and Wurfflein dueling pistols. Finally, Scarbrough directed at least $32,000.00 in donations to the Hooks Volunteer Fire Department while he was the Capitan of Operations. In total, Scarbrough received more than $300,000.00 in bribe payments from Harrison and Bishop.
Scarbrough is not the only official at RRAD who accepted bribes. Devin McEwin accepted more than $21,000.00 in bribes from Harrison, including hunting trips, donations directed to the Annona Volunteer Fire Department, and the refurbishment of his 1964 Ford truck. Additionally, Louis Singleton accepted more than $18,000 in bribes from Harrison and others, including tickets to the Hall of Fame section of AT&T Stadium for the Dallas Cowboys football game against the New England Patriots. Singleton was the supervisor of the GPC program at the RRAD and was responsible for approving purchases requested by Scarbrough.
This was investigated by the U.S. Army CID, Major Procurement Fraud Field Office; the Federal Bureau of Investigation-Dallas Division, Tyler Resident Agency, and the U.S. Postal Inspection Service. This case was prosecuted by Assistant U.S. Attorneys Jonathan R. Hornok, Stephan Oestreicher, Andrew Stover, and Robert Wells.
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Jasper County Man Sentenced for Federal Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas - A Buna man has been sentenced to 22 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Larry Wayne Free, 40, pleaded guilty on June 30, 2022, to possession with intent to distribute methamphetamine and was sentenced to 264 months in federal prison by U.S. District Judge Marcia A. Crone on Feb. 2, 2023.
According to information presented in court, in January 2021, law enforcement officials received information that Free was distributing methamphetamine from a residence in Nome, Texas. Free was located on Highway 90 and a traffic stop was initiated on the vehicle. A narcotics K9 unit alerted on the vehicle and a search revealed 1,948 grams of methamphetamine in the car. Free was indicted by a federal grand jury on April 6, 2022.
This case was investigated by the Drug Enforcement Administration, the Jefferson County Sheriff’s Office, the Beaumont Police Department and the Hardin County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Rachel Grove.
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23 Arrested, Charged in East Texas Paycheck Protection Program-Related FraudRead the Press Release
SHERMAN, Texas – Nearly two dozen individuals have been named in a federal indictment charging them with violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today
The indictment, returned by a federal grand jury on Jan. 17, 2023, charges the defendants with a money laundering conspiracy. The following 23 defendants appeared before a federal magistrate judge this week:
KENDRICK LAVELL COLLINS, 42, of Aubrey;
LETISHA ANN STOVER, 41, of Richardson;
SPENCER LEONARD LEIGH, 35, of Everman;
DANUIELLE FOWLER EDNEY, 51, of Plano;
DIAMOND PLASHETTE EDWARDS, 24, of Grand Prairie;
TABITHA LASHAWN DEBERRY, 34, of Dallas;
AMOS WILSON, 56, of Dallas;
ANDREW DEMARCUS PENNY, 45, of Dallas;
DEMETRICS DEVON BLACK, 31, of Dallas;
JARRICK OTISHEY BUCKHANAN, 43, of Dallas;
JERICA JAREESE MATTHEWS, 31, of Anna;
JOHN GANTT, 35, of Dallas;
LEMAR MASHAWN COHEN, a/k/a LEMAR MARSHAWN COHEN, 36, of Dallas;
CHIBUIKE SAMUEL IWUH, 30, of The Colony;
CYNTHIA MECHELLE WILSON, 55, of Dallas;
DONTRELL LAMON AMIE, 42, of North Richland Hills;
ERIC JASON VAUGHAN, 49, of Arlington;
JEREMIAH LEE GANTT, 28, of Dallas;
JOSHUA MATTHEW BAHAM, 27, of Anna;
LESLEY ODELL BROWN, 32, of Carrollton;
MICHAEL ANDRE STUDAWAY, 26, of Dallas;
TAMARA DAWN THOMAS, 41, of Dallas; and
TIMOTHY DWAYNE HOSTON, 44, of Carrollton.
According to the indictment, the defendants are alleged to have conspired to launder the proceeds of wire fraud in order to conceal the nature, location, source and ownership of the money gained by fraud. The indictment further alleges that the conspirators would open bank accounts, use assumed business names, and transfer, withdraw, and move the money and use it for their own purposes. The source of the laundered funds is alleged to include fraud based on business email compromise, romance scams, unemployment insurance fraud, and Payroll Protection Program (PPP) fraud, and is alleged to be more than $3.5 million.
If convicted, the defendants each face up to 20 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation’s Frisco Resident Agency and prosecuted by Assistant U.S. Attorneys in the Eastern District of Texas.
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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New Yorker Indicted for Possessing Automatic Rifle in Basilica School ZoneRead the Press Release
BEAUMONT, Texas – A Brooklyn, NY man has been indicted for a federal firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Ahmed Abdalla Allam, 26, was named in an indictment returned by a federal grand jury on Feb. 1, 2023, charging him with possession of a firearm in a school zone. Allam appeared in federal court before U.S. Magistrate Judge Zack Hawthorn today and was ordered to be held pending a detention hearing.
According to information presented in court, on Jan. 29, 2023, Allam was found in possession of a multi-caliber rifle within 1,000 feet of St. Anthony Cathedral Basilica School in Beaumont. Allam also possessed a 30-round magazine and 150 rounds of ammunition. It is a federal violation to possess firearms or ammunition within 1,000 feet of a school zone.
“The community of St. Anthony’s, including parents, teachers, and administrator, are to be commended for remaining vigilant and reporting their suspicions,” said U.S. Attorney Brit Featherston. “If you see something suspicious – say something. You may save a life.”
If convicted, Allam faces up to 5 years in federal prison.
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.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Beaumont Police Department, Jefferson County District Attorney’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives, FBI, Port Arthur Fire Department, and Montgomery County Fire Marshall. This case is being prosecuted by Assistant U.S. Attorney John B. Ross.
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Dallas Man Convicted of Federal Drug Trafficking Violations in Eastern District of TexasRead the Press Release
SHERMAN, Texas – A Dallas man has been convicted of federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Eric R. Roberts, 51, was convicted of multiple federal violations, including continuing criminal enterprise; conspiracy to possess with intent to distribute marijuana; conspiracy to commit money laundering; and possession of a firearm in furtherance of a drug trafficking crime. Roberts was found guilty by a jury following a 10-day trial before U.S. District Judge Amos Mazzant.
The jury also returned a verdict for criminal forfeiture of a large amount of property seized from Roberts, including 37 firearms, 8 vehicles, and $436,295 in US currency.
Four additional co-defendants - Ronald Lewis McGuire, Lowell Eugene Sargent, Philip S. Lala, and Christopher Shaun Ragle - were found guilty by the same jury of conspiracy to possess with intent to distribute marijuana and conspiracy to commit money laundering. The jury found that all five defendants were individually responsible for 1000 kilograms or more of a mixture or substance containing a detectable amount of marijuana.
According to information presented in court, Roberts was a leader of a large-scale national drug trafficking organization spanning several years, with McGuire, Sargent, Lala, and Ragle acting as drivers.
Roberts was indicted by a federal grand jury on April 15, 2021. He 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 prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the Drug Enforcement Administration and the Mesquite Police Department and prosecuted by Assistant U.S. Attorneys Brent L. Andrus and Ernest Gonzalez.
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Women Sentenced for Trafficking Cocaine through the Eastern District of TexasRead the Press Release
BEAUMONT, Texas - Two women have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Tina Gilder, 40, of Houston, and Gina Moreno, 29, of San Benito, Texas, were indicted by a federal grand jury on Jan. 8, 2020, and charged with conspiracy to distribute cocaine. On Jan. 17, 2023, U.S. District Judge Crone sentenced Gilder to 121 months in federal prison and Moreno to 87 months in federal prison.
According to information presented in court, Gilder and Moreno were both part of a Houston-based conspiracy to traffic kilograms of cocaine through East Texas to the East Coast for distribution. On August 26, 2019, Gilder was stopped and found in possession of four kilograms of cocaine concealed in a hidden compartment in a Jeep. Moreno was stopped on Sep. 21, 2019 and found in possession of 22 kilograms of cocaine. Gilder was convicted at trial on Feb. 24, 2022 and Moreno pleaded guilty on Feb. 7, 2022.
These cases were investigated by the Drug Enforcement Administration and the Port Arthur Police Department and prosecuted by Assistant U.S. Attorney Michael Anderson.
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Shelby County Woman Sentenced for Federal Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas - A Center woman has been sentenced to 10 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Ingrid Yaresi Balderas De Leon, 28, pleaded guilty on July 12, 2022, to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 120 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, De Leon was part of a drug trafficking organization distributing large quantities of methamphetamine in East Texas. De Leon participated in several sales of large quantities of methamphetamine, often acting as a Spanish-language interpreter during the transactions. De Leon and her co-conspirators would hide the methamphetamine in the plastic trim of vehicles and deliver them to a residence in Center. De Leon was indicted by a federal grand jury on March 2, 2022.
This case was investigated by the FBI, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Donald S. Carter.
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Jefferson County Felon Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas - A Beaumont man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Edward Lee Simien, 43, pleaded guilty on Sep. 9, 2022, to possession of a firearm by a prohibited person and was sentenced to 41 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on April 24, 2022, local law enforcement officers were serving an arrest warrant on Simien, when they observed Simien enter a vehicle near the rear of his business. Officers attempted to conduct a traffic stop on Simien, however he fled from officers at a high rate of speed. Eventually Simien ran into the fence of a local business, disabling his vehicle. Simien then exited the vehicle with what officers observed was a firearm with an extended magazine in his hand. Simien fled on foot and threw the firearm nearby. Officers eventually took Simien into custody and recovered the firearm he discarded. Further investigation revealed Simien was a previously convicted felon and prohibited from owning or possessing firearms or ammunition. Simien was indicted by a federal grand jury on May 11, 2022.
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 Russell James.
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Collin County Man Charged with Distributing Fentanyl in the Eastern District of TexasRead the Press Release
PLANO, Texas – A Plano has been charged with drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Eric William Mather, also known as “Truth”, 36, was named in a fourth superseding indictment returned by a federal grand jury on Nov. 9, 2022 in the Eastern District of Texas. The indictment charges Mather with multiple federal violations including conspiracy to distribute fentanyl and conspiracy to launder money. Mather made his initial appearance on Jan. 12, 2023, before U.S. Magistrate Judge Christine Nowak.
According to the indictment, in September of 2022, the North Texas North Texas OCDETF Strike Force 2 (SF2), with the assistance of the DEA Dallas Tactical Diversion Squad (TDS), identified Mather as a fentanyl source of supply selling raw powdered fentanyl, and counterfeit pharmaceutical pills laced with fentanyl. During his arrest, a search warrant was executed on his residence, resulting in the seizure of over 2 kilograms of raw powdered fentanyl, over a kilogram of fentanyl laced pills, a pill press, 30 firearms, and luxury vehicles. Mather is ultimately alleged to be responsible for multiple overdoses in the North Texas region.
If convicted, Mather faces up to life in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is being investigated by the U.S. Postal Inspection Service; Drug Enforcement Administration; U.S. Marshals Service; IRS-Criminal Investigations; Dallas Police Department; and the Collin County Sheriff's Office. The case is being prosecuted by Assistant U.S. Attorney Heather Rattan.
An 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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Angelina County Drug Trafficker Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas - A Lufkin man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Fabian Fernando Hernandez, 20, pleaded guilty on July 19, 2022, to possession of a firearm in furtherance of a drug trafficking crime and was sentenced to 60 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, Hernandez was identified by law enforcement as a possible distributor of narcotics in the East Texas area. On Jan. 15, 2022, the Rusk Police Department conducted a traffic stop of a vehicle Hernandez was driving. During the traffic stop Hernandez fled on foot. Officers found nearly sixty grams of cocaine and almost 500 grams of marijuana in the vehicle abandoned by Hernandez, as well as pistol. Hernandez was indicted by a federal grand jury on April 6, 2022.
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, the Lufkin Police Department, and the Rusk Police Department and prosecuted by Assistant U.S. Attorney Donald S. Carter.
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Jefferson County Man Sentenced for Federal Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas - A Groves man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Paul Cole Bartee, 36, pleaded guilty on April 1, 2022, to possession with intent to distribute 50 grams or more of methamphetamine and was sentenced to 210 months in federal prison by U.S. District Judge Marcia A. Crone on Jan. 10, 2023.
According to information presented in court, between February and September 2021, Bartee had frequent encounters with various law enforcement agencies while in possession of narcotics. Bartee was found in possession of a total of 4.7 kilograms of methamphetamine, 15 grams of heroin, and 38 grams of fentanyl, as well as a firearm and $5,000 cash. Bartee was indicted by a federal grand jury on Oct. 6, 2021.
This case was investigated by the Drug Enforcement Administration, Jefferson County Sheriff’s Office, Bridge City Police Department, Orange Police Department, Nederland Police Department, Port Arthur Police Department and Groves Police Department. This case was prosecuted by Assistant U.S. Attorney Michael Anderson.
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Houston Man Sentenced for Stealing Beaumont MailRead the Press Release
BEAUMONT, Texas – A Houston man has been sentenced for stealing mail in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Dontae Dewey McGee, 23, pleaded guilty on June 21, 2022, to theft of mail and was sentenced to 37 months in federal prison today by U.S. District Judge Marcia A. Crone. McGee was also ordered to pay $55,372.30 in restitution to victims.
According to information presented in court, in January 2022, the U.S. Postal Service received complaints of stolen mail from various Post Office locations within Beaumont. An investigation began which included a surveillance operation resulting in the identification of McGee and co-defendant Tyrin Terelle Robinson. On Feb. 28, 2022, a vehicle pursuit between law enforcement and the defendants ensued during which mail was being thrown from the vehicle. Spikes were deployed, the vehicle was stopped, and the defendants were arrested. Robinson pleaded guilty on Sep. 7, 2022 and is awaiting sentencing.
This case was investigated by the U.S. Postal Inspection Service and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Jonathan Lee.
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Liberty County Felon Guilty of Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Dayton man has pleaded guilty to a federal firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Clifford Scott Oclair, 57, pleaded guilty to possession of a firearm by a prohibited person before U.S. District Judge Marcia A. Crone on Jan. 9, 2023.
According to court documents, on July 11, 2022, Oclair was arrested by deputy U.S. Marshals and Liberty County law enforcement officers in Liberty County who were tracking him down in an attempt to arrest him for outstanding warrants. A few minutes prior to his arrest, Oclair was observed crossing through a fenced-off, open area into a pasture along Highway 321 near Dayton. Law enforcement officers set up a perimeter in the pasture and took positions in high grass on the ground, while observing the area. Within a few minutes, officers observed Oclair on the run moving toward them. When Oclair got close enough, the officers emerged from their positions with their weapons raised and arrested him, but not before he was observed discarding a firearm he had concealed in his pants. The loaded firearm was discovered in the grass nearby.
Oclair was indicted by a federal grand jury on Oct. 5, 2022. He faces up to 15 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 being 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 is being investigated by the Dayton Police Department, Liberty County Constable’s Office, Precincts 4 and 6, Port Arthur Police Department, U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
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Port Arthur Man Guilty of Glock Auto-Switch ViolationRead the Press Release
BEAUMONT, Texas - A Port Arthur man has pleaded guilty to federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Javier Jesus Morales, 26, pleaded guilty to possession of an unregistered firearm today before U.S. District Judge Marcia A. Crone.
According to information presented in court, on Oct. 27, 2020, Morales sold a Glock .9mm pistol to a federal agent acting in an undercover capacity after the agent responded to a posting on the social media forum “Snapchat” advertising for the sale. The Glock pistol was outfitted with an attached aftermarket “auto-switch.” The auto-switch is a device used to convert a standard, legal handgun into a fully automatic machine gun, which if not registered in the National Firearms Registration and Transfer Record is illegal to possess. The firearm was not registered to Morales.
Morales was indicted by a federal grand jury on Feb. 2, 2022. He faces up to 10 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 being 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 is being investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. This case is being prosecuted by Assistant U.S. Attorney Joseph R. Batte.
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Orange County Convicted Felon Guilty of Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Vidor man has pleaded guilty to a federal firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Job Allen Smith, 49, pleaded guilty to possession of a firearm by a prohibited person today before U.S. District Judge Marcia A. Crone.
According to court documents, on Nov. 18, 2021, law enforcement officers conducted a search warrant at a residence in Vidor where they believed Smith would be in possession of narcotics. During the search, officers discovered two firearms in the master bedroom closet. Smith, a convicted felon, is prohibited by federal law from owning or possessing firearms or ammunition.
Smith was indicted by a federal grand jury on Sep 7, 2022. He faces up to 10 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 being 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 is being investigated by the Orange County Sheriff’s Office, Orange County SWAT, FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Russell James.
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Hardin County Man Guilty of Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – A Silsbee man has pleaded guilty to federal child pornography violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Michael Joseph Fontenot, 50, pleaded guilty to possession of child pornography today before U.S. District Judge Marcia A. Crone.
According to public information, Fontenot was found in possession of over 600 images of child pornography, including some images depicting a prepubescent minor engaging in sexual activity.
Fontenot faces up to 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 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 is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Rachel Grove.
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Bookkeeper Pleads Guilty to Embezzling over $29 MillionRead the Press Release
A Texas woman pleaded guilty today in the Eastern District of Texas for a scheme to embezzle at least $29 million from her employer – a charitable foundation and several other companies run by a Dallas family.
According to court documents, Barbara Chalmers, 74, of Lewisville, admitted that starting in at least 2012, she abused her position as bookkeeper for the family’s companies and her signatory authority over the companies’ bank accounts to fraudulently write herself at least 175 checks, which she deposited into her personal accounts. In order to conceal her fraudulent conduct, she provided false paperwork to tax preparers misstating the year-end cash-on-hand numbers for the various accounts from which she was embezzling. She used more than $25 million of the stolen money to fund a construction business for which she was the president.
Chalmers pleaded guilty to one count of money laundering and faces a maximum penalty of 10 years in prison at sentencing. A sentencing date has not yet been scheduled. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Brit Featherston for the Eastern District of Texas, Assistant Director Luis Quesada of the FBI Criminal Investigative Division, and Acting Special Agent in Charge James J. Dwyer of the FBI Dallas Field Office made the announcement.
The FBI is investigating the case.
Trial Attorneys Vasanth Sridharan and Lucy Jennings of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Texas are prosecuting the case.
FBI and Partners Issue National Public Safety Alert on Financial Sextortion SchemesRead the Press Release
BEAUMONT, Texas – The FBI, in partnership with Homeland Security Investigations and the National Center for Missing and Exploited Children, is issuing a national public safety alert regarding an explosion in incidents of children and teens being coerced into sending explicit images online and extorted for money—a crime known as financial sextortion.
Over the past year, law enforcement has received over 7,000 reports related to the online financial sextortion of minors, resulting in at least 3,000 victims, primarily boys, and more than a dozen suicides. A large percentage of these sextortion schemes originate outside of the United States, and primarily in West African countries such as Nigeria and Ivory Coast. As many children enter winter break this holiday season, the FBI and our partners implore parents and caregivers to engage with their kids about financial sextortion schemes so we can prevent them in the first place.
“What is your child doing on-line during the holidays,” asked U.S. Attorney Brit Featherston. “Unbeknownst to many parents, kids get caught on-line, tricked by adult predators into revealing something private or personal, even exposing themselves. Then the predator threatens to go public or send the information to the child’s parents unless the child sends money or provides other improper photos to the predator. This is electronic extortion and it’s a crime that happens frequently, so know what your child is doing on-line this holiday season.”
“The FBI has seen a horrific increase in reports of financial sextortion schemes targeting minor boys—and the fact is that the many victims who are afraid to come forward are not even included in those numbers,” said FBI Director Christopher Wray. “The FBI is here for victims, but we also need parents and caregivers to work with us to prevent this crime before it happens and help children come forward if it does. Victims may feel like there is no way out—it is up to all of us to reassure them that they are not in trouble, there is hope, and they are not alone.”
“The protection of children is a society’s most sacred duty,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “It calls on each of us to do everything we can to keep kids from harm, including ensuring the threats they face are brought into the light and confronted. Armed with the information in this alert message, parents, caregivers, ad children themselves should feel empowered to detect fake identities, take steps to reject any attempt to obtain private material, and if targeted, have a plan to seek help from a trusted adult.”
Financial sextortion schemes occur in online environments where young people feel most comfortable—using common social media sites, gaming sites, or video chat applications that feel familiar and safe. On these platforms, online predators often use fake female accounts and target minor males, between 14 to 17 years old but the FBI has interviewed victims as young as 10 years old.
“The sexual exploitation of children is a deplorable crime. HSI special agents will continue to exhaust every resource to identify, locate, and apprehend predators to ensure they face justice,” said Steve K. Francis, HSI Acting Executive Associate Director. “Criminals who lurk in platforms on the internet are not as anonymous as they think. HSI will continue to leverage cutting-edge technology to end these heinous acts.”
Through deception, predators convince the young person to produce an explicit video or photo. Once predators acquire the images, they threaten to release the compromising material unless the victim sends money or gift cards. Often the predators demand payment through a variety of peer-to-peer payment applications. In many cases, however, predators release the images even if payments are made. The shame, fear, and confusion that victims feel when they are caught in this cycle often prevents them from asking for help or reporting the abuse.
“This is a growing crisis and we've seen sextortion completely devastate children and families,” said Michelle DeLaune, CEO of the National Center for Missing & Exploited Children. “As the leading nonprofit focused on child protection, we've seen first-hand the rise in these cases worldwide. The best defense against this crime is to talk to your children about what to do if they're targeted online. We want everyone to know help is out there and they're not alone.”
What if you or your child is a victim?
If young people are being exploited, they are victims of a crime and should report it. Contact your local FBI field office, call 1-800-CALL-FBI, or report it online at tips.fbi.gov.
The National Center for Missing and Exploited Children (NCMEC) has outlined steps parents and young people can take if they or their child are a victim of sextortion, including:
- Remember, the predator is to blame, not your child or you.
- Get help before deciding whether to pay money or otherwise comply with the predator. Cooperating or paying rarely stops the blackmail and continued harassment.
- REPORT the predator’s account via the platform’s safety feature.
- BLOCK the predator and DO NOT DELETE the profile or messages because that can be helpful to law enforcement in identifying and stopping them.
- Let NCMEC help get explicit images of you off the internet.
- Visit org/IsYourExplicitContentOutThere to learn how to notify companies yourself or visit cybertipline.org to report to us for help with the process.
- Ask for help. This can be a very complex problem and may require help from adults or law enforcement.
- If you don’t feel that you have adults in your corner, you can reach out to NCMEC for support at [email protected] or call NCMEC at 1-800-THE-LOST.
Take a moment to learn how sextortion works and how to talk to your children about it. Information, resources, and conversation guides are available at fbi.gov/StopSextortion.
Lubbock Man Sentenced to 35 years in Federal Prison for East Texas Drug TraffickingRead the Press Release
SHERMAN, Texas - A Lubbock man has been sentenced to 35 years in federal prison for trafficking drugs through the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Mark Anthony Calzadias, 48, pleaded guilty on Dec. 20, 2021, to conspiracy to possess with intent to distribute five kilograms or more of cocaine and conspiracy to commit money laundering and was sentenced to 420 months in federal prison today by U.S. District Judge Amos Mazzant.
According to information presented in court, between 2017 and 2018, seven incidents associated with the Calzadias Drug Trafficking Organization (DTO) resulted in the seizure of 10 kilograms of cocaine and $1,664,620 in U.S. currency. A joint investigation revealed that Mark Anthony Calzadias, Michael Calzadias, and Thomas Calzadias were the main sources of supply for the drugs, including cocaine, which were imported from Mexico, and transported from the Rio Grande Valley through the Eastern District of Texas to St. Louis, Missouri; Danville, Virginia; Greenville, South Carolina; Atlanta, Georgia; Fort Meyers, Florida; and other areas in the United States. Over the course of the conspiracy, the Calzadias DTO was responsible for the transportation of over 1,000 kilograms of cocaine. The investigation resulted in the seizure of $1.6 million in U.S. Currency.
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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Jasper County Youth Coach Indicted on Federal Child Exploitation ChargesRead the Press Release
BEAUMONT, Texas– A Silsbee man has been indicted on federal child exploitation charges in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Adam Dale Isaacks, 39, was named in an indictment returned by a federal grand jury on Dec. 7, 2022, charging him with six counts of transportation of a minor for sexual activity.
According to prosecutors, in 2020 and 2021, Isaacks was a youth coach and president of the Evadale Little League Baseball organization and a trusted member of the community. During this time, Isaacks is alleged to have transported minors from Texas to other states for sporting and camping events with intent to engage in sexual activity with the minor.
If convicted, Isaacks faces from 10 years to life in federal prison.
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.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the FBI, the Sabine County Sheriff’s Office, the Jasper County Sheriff’s Office, and the San Augustine County Sheriff’s Office. This case is being prosecuted by Assistant U.S. Attorney Rachel Grove.
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Houston Man Sentenced for Drug Trafficking in East TexasRead the Press Release
BEAUMONT, Texas - A Houston man was sentenced to federal prison for trafficking drugs through the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Jaime Garcia-Sanchez, 20, pleaded guilty on July 14, 2022, to possession with intent to distribute cocaine and was sentenced to 52 months in federal prison today by U.S. District Judge Marcia A. Crone. Co-defendant, Daniel Corona Avalos, a Mexican national, was sentenced to 57 months in federal prison on Dec. 1, 2022.
According to information presented in court, on March 4, 2022, Garcia-Sanchez and Avalos were stopped by law enforcement on Hwy 59 in Nacogdoches. During a consent search of the vehicle, law enforcement officers located 16 kilograms of cocaine hidden inside the vehicle’s bumper. Garcia-Sanchez and Avalos were trafficking the drugs through the Eastern District of Texas to Chicago for further distribution. They were indicted by a federal grand jury on April 6, 2022 and charged with drug trafficking violations.
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 the Nacogdoches Police Department and prosecuted by Assistant U.S. Attorney Michael Anderson.
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Former Financial Aid Director of Texas College Indicted for Student Financial Aid FraudRead the Press Release
A Shreveport, Louisiana mother and son are among those indicted on federal charges in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Angela Speech, 43; her son, Jeremy Marshall, 24; Devonaire Jones, 35; and Camyl Lewis, 24, were indicted by a federal grand jury on Nov. 16, 2022, and charged with multiple counts of student financial aid fraud. Speech and Marshall made initial appearances before U.S. Magistrate Judge John D. Love on Dec. 7, 2022.
According to the indictment, between August 2019 and February 2020, Speech was the director of financial aid at Texas College in Tyler. According to its website, Texas College is a historically black private college founded by Christian Methodist Episcopal Church ministers in 1894. Speech allegedly used her access to students’ financial aid accounts to trigger financial aid payments to Marshall, Jones, Lewis, and others that they were not entitled or eligible to receive. Altogether, Speech and these students, aided and abetted by each other and others, knowingly and willfully misapplied, stole, and obtained by fraud, false statement, and forgery funds, assets, and property provided and insured under the Pell Grant Program, the William D. Ford Federal Direct Loan Programs, and other federal subsidized and unsubsidized loan programs.
If convicted, the defendants each face up to five 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.
This case is being investigated by the U.S. Department of Education—Office of Inspector General and the U.S. Secret Service and prosecuted by Assistant U.S. Attorneys Robert Austin Wells and Lucas Machicek.
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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Smith County Man Sentenced for Federal Income Tax ViolationRead the Press Release
TYLER, Texas – A Whitehouse, Texas, man has been sentenced for a federal income tax violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Anthony D. Klein, 48, pleaded guilty on March 30, 2022, to attempting to evade or defeat tax and was sentenced to 18 months in federal prison today by U.S. District Judge Jeremy D. Kernodle. Klein was ordered to pay restitution in the amount of $404,292 to the IRS.
According to information presented in court, for tax year 2016, Klein filed an IRS Form 1040, U.S. Individual Income Tax Return, with the Internal Revenue Service. On that form, he claimed that he had no taxable income and that he was entitled to credits in the amount of $5,836.00. In fact, he had taxable income of approximately $538,188.07 for tax year 2016. In filing the return, Klein intended to evade and defeat the payment of income tax that was due and owing to the United States.
Klein admitted that the tax loss for tax year 2016 is $194,780; for tax year 2017 is $98,431.00; for tax year 2018 is $74,191.00; and for tax year 2019 is $36,890.00, for a total tax loss of $404,292.00.
The case was investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney Alan R. Jackson.
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Smith County Man Sentenced for Child Pornography ViolationsRead the Press Release
TYLER, Texas - A Lindale man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Michael James Quam, 29, pleaded guilty on July 20, 2022, to possessing or accessing child pornography and was sentenced to 87 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to information presented in court, on March 5, 2020, a law enforcement official, working undercover, connected to a social media sharing group. A user in the group, later identified as Quam, posted to the group a link to a “cloud storage” provider that led to a folder providing access to files that included videos containing child pornography. Quam admitted that he knew the folder included videos of child pornography when he posted the link to the group. Quam was indicted by a federal grand jury on March 17, 2022 and charged with federal violations.
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 Federal Bureau of Investigation and Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Alan R. Jackson.
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Eastern District of Texas Announces Multi-Year Investigation into Transnational Cryptocurrency Money Laundering NetworksRead the Press Release
TYLER, Texas – According to court documents unsealed today, 21 individuals have been charged for their roles in transnational money laundering networks, including those that laundered millions of dollars stolen from United States fraud victims through romance scams, business email compromises, technical support schemes, and other fraud schemes.
U.S. Attorney Brit Featherston of the Eastern District of Texas, William Smarr, Special Agent in Charge of the U.S. Secret Service’s (USSS) Dallas Field Office, and Inspector in Charge Thomas Noyes of the U.S. Postal Inspection Service announced Operation Crypto Runner, an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation into transnational cryptocurrency money laundering networks that facilitate the movement of fraud proceeds from victims in the United States to foreign criminal organizations.
“These defendants orchestrated highly organized and sophisticated schemes to launder fraud proceeds through cryptocurrency,” said U.S. Attorney Brit Featherston. “Today’s announcement sends a clear message that money laundering networks that service fraud schemes targeting American victims, especially the elderly, will not be tolerated, and those operating such networks will be held accountable. By acting as domestic money launderers for foreign co-conspirators, these defendants played indispensable roles that allowed foreign actors to reach from overseas to target victims in communities across the United States.”
“Today’s announcement demonstrates the investigative capabilities of the Secret Service and highlights the success of our collaborative efforts through Operation Crypto Runner to dismantle and disrupt transnational money laundering networks,” said William Smarr, Special Agent in Charge of the U.S. Secret Service’s Dallas Field Office. “These arrests are just the beginning. We are committed to bringing each of the remaining perpetrators to justice.”
“These cases stem from a multi-year operation initiated in the Eastern District of Texas by Postal Inspectors and the Secret Service,” said Thomas Noyes, Inspector in Charge of the Postal Inspection Service’s Fort Worth Division. “Cybercrime has become an all-too-common way for foreign criminal actors to prey on Americans. Interagency cooperation is essential to be effective in disrupting organized crime. I commend the exceptional work of our law enforcement partners and emphasize our agency’s ongoing commitment to combatting fraud and money laundering schemes.”
To date, the Operation has disrupted more than $300 million in annual money laundering transactions, seized and forfeited millions in cash and cryptocurrency, and identified thousands of victims.
Some of the schemes alleged in the indictments include the following:
- U.S. v. Zenobia Walker, 6:20-CR-91-JCB/KNM (11/19/2020)
Zenobia Walker, 65, of Temple Hills, Maryland, pleaded guilty on January 6, 2022, to conspiracy to operate an unlicensed money transmitting business and was sentenced to 18 months in federal prison on November 2, 2022. Walker was involved in a scheme in which she received cash by mail, money orders, wire transfers, and cashier’s checks obtained from victims of romance scams and from victims of other fraud schemes. The funds were deposited into Walker’s personal bank accounts and withdrawn and deposited into other bank accounts in order to exchange the funds for cryptocurrency. Between December 2019 and September 2020, Walker exchanged $308,800.00 for cryptocurrency on behalf of her foreign co-conspirators.
- U.S. v. Tulasidas Konda, 6:20-CR-31-JDK/JDL (4/23/2021)
Tulasidas Konda, 57, of Amelia Court House, Virginia, pleaded guilty on May 5, 2021, to conspiracy to commit money laundering. Konda led and organized a multi-year money laundering conspiracy involving the laundering of criminal proceeds derived from various scams. Konda’s organization opened bank accounts and mailboxes that were used to receive and transact victim funds, received the victim funds, engaged in subsequent financial transactions, routinely structured in amounts under $10,000 in an effort to evade reporting requirements and to conceal the nature and source of the criminal proceeds, and moved the criminal proceeds to foreign co-conspirators. Konda’s organization routinely exchanged the criminal proceeds for cryptocurrency and directed the cryptocurrency to wallets under the control of their foreign co-conspirators. In the course of the operation, Konda was personally responsible for laundering $4,172,061.58 in criminal proceeds.
- U.S. v. Deependra Bhusal, 6:21-CR-32-JDK/JDL (4/23/2021)
Deependra Bhusal, 46, of Irving, Texas, pleaded guilty on April 30, 2021, to conspiracy to commit money laundering and was sentenced to 46 months in federal prison on April 6, 2022. Bhusal was a key member of the Konda Organization. In the course of the operation, Bhusal was personally responsible for laundering $1,437,358.99 in criminal proceeds.
- U.S. v. Lois Boyd, et al., 6:21-CR-43-JDK/KNM (6/16/2021)
Lois Boyd, 76, of Amelia Court House, Virginia, pleaded guilty on June 14, 2022, to a violation of the Travel Act. Boyd, also a member of the Konda Organization, is alleged to have conspired with others to receive victim money derived from a variety of fraud schemes and launder the proceeds through cryptocurrency. Boyd routinely structured deposits in order to avoid transaction reporting requirements and to conceal the nature and source of the criminal proceeds. Boyd and others in the Konda Organization exchanged the criminal proceeds for cryptocurrency and directed the cryptocurrency to wallets under the control of their foreign co-conspirators. In August 2020, Boyd and others traveled to Longview, Texas, where they attempted to exchange more than $450,000 for Bitcoin.
- U.S. v. John Khuu, 6:22-CR-62-JCB/JDL (5/18/2022)
John Khuu, 27, of San Francisco, California was named in an indictment returned by a federal grand jury charging him in a money laundering conspiracy. According to the indictment, Khuu is alleged to have conspired with others to launder the proceeds of his drug trafficking organization through cryptocurrency. The defendant allegedly distributed counterfeit pharmaceutical pills and other controlled substances on dark web markets to customers across the United States. Customers paid for their purchases by transferring cryptocurrency, usually Bitcoin, from their dark web market customer accounts to one of Khuu’s vendor accounts. Khuu and his co-conspirators traded the Bitcoin for U.S. currency and laundered the proceeds through hundreds of transactions and dozens of financial accounts. During the course of the conspiracy, Khuu and his co-conspirators allegedly laundered more than $5,350,000.00. On August 17, 2022, Khuu was also charged by a federal grand jury in the Northern District of California in a two-count indictment charging him with unlawful importation of a controlled substance.
- U.S. v. Randall V. Rule, et al., 6:22-CR-64-JDK/KNM (5/18/2022)
Randall V. Rule, 71, of Reno, Nevada, and Gregory C. Nysewander, 64, formerly of Irmo, South Carolina, were named in an indictment returned by a federal grand jury charging them with money laundering conspiracy, money laundering, and a conspiracy to violate the Bank Secrecy Act. According to the indictment, Rule and Nysewander are alleged to have conspired with others to launder the proceeds of wire fraud and mail fraud schemes through cryptocurrency. The defendants converted funds from romance scams, business email compromises, and real estate scams, and other fraudulent schemes into cryptocurrency and sent the cryptocurrency to accounts controlled by foreign and domestic co-conspirators. The defendants and their co-conspirators made false representations and concealed material facts, in order to avoid discovery of the fraudulent nature of deposits, wires, and transfers, such as providing instructions to co-conspirators and victims to label wire transfers as “loan repayments” and “advertising.” The defendants also made false representations and concealed material facts when completing account opening documents and when communicating with financial institutions and cryptocurrency exchanges. During the course of the conspiracy, Rule, Nysewander, and their co-conspirators allegedly laundered more than $2.4 million. Rule and Nysewander are also charged with willfully violating the money services business requirements of the Bank Secrecy Act.
- U.S. v. Sharena Seay, 6:22-CR-110-JDK/JDL (8/17/2022)
Sharena Seay, 37, of Jacksonville, Florida, was named in an indictment returned by a federal grand jury charging her with money laundering. According to the indictment, Seay is alleged to have laundered the proceeds of her drug trafficking operations through cryptocurrency. The defendant allegedly supplied alpha-Pyrrolidinopentiophenone (alpha-PVP), which is often called “flakka,” and similar synthetic cathinones, such as Eutylone or alpha-PiHP. Seay distributed alpha-PVP and other controlled substances to various customers across the United States. Customers who purchased controlled substances from Seay paid for their purchases with cash. Seay laundered the cash proceeds through cryptocurrency in order to purchase more controlled substances on the dark web and to conceal her criminal activity. During the course of the conspiracy, Seay allegedly laundered more than $1.2 million.
- U.S. v. Fnu Ankush, et al., 6:22-CR-111-JCB/KNM (8/17/2022)
Fnu Ankush, 35, of Fishers, Indiana, Jenisha Katuwal, 40, of Fishers, Indiana, Sukhwinder Sandhu, 44, of Philadelphia, Pennsylvania, Inder Singh, 37, of Philadelphia, Pennsylvania, Mukul Khanna, 37, of Philadelphia, Pennsylvania, Satinder Singh, 36, of Philadelphia, Pennsylvania, Ramneek Singh, 28, of Levittown, New York, Muninder Singh, 52, of Fairfax, Virginia, Sandeep Heir, 43, of Fresno, California, and Rachel Mullins, 36, of Jacksonville, Florida, were named in an indictment returned by a federal grand jury charging them in a wire and mail fraud conspiracy. According to the indictment, the defendants facilitated technical support schemes by creating a financial infrastructure in the United States that involved establishing shell companies with names intended to resemble names of legitimate companies. The defendants opened and controlled business bank accounts in the names of the shell companies in order to facilitate the computer tech scheme. The defendants also established websites for many of the shell companies in order to make the shell companies appear legitimate. Then, through false and fraudulent pretenses, representations, and promises, and concealment of material facts, the defendants and their co-conspirators persuaded victims to deposit, wire, or transfer funds into designated bank accounts or to mail funds to designated addresses.
These efforts are part of Operation Crypto Runner, 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.
In October 2017, the Elder Abuse Prevention and Prosecution Act (EAPPA) was signed into law. The EAPPA’s purpose is to increase the federal government’s focus on preventing elder abuse and exploitation. Subsequently, the Department of Justice launched the Elder Justice Initiative (EJI). Through the EJI, the Department has participated in hundreds of criminal and civil enforcement actions involving misconduct that targeted vulnerable seniors. The Department has conducted hundreds of trainings and outreach sessions across the country. The EJI website contains useful information, including educational resources about prevalent financial scams so you can guard against them.
In August 2020, the Eastern District of Texas announced its own initiative, in partnership with law enforcement and private financial institutions, to identify and prosecute transnational elder fraud. This EDTX initiative is designed to combat these criminal organizations, both foreign and domestic, as well their networks of associates and money mules who launder the stolen funds.
The investigations arising from the operation are being conducted by the U.S. Secret Service and the U.S. Postal Inspection Service and are being led and prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr., with assistance from the Criminal Division’s Fraud Section and Computer Crime and Intellectual Property Section and the Department’s Office of International Affairs.
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Houston Men Sentenced to Federal Prison for Bowie County ATM BurglariesRead the Press Release
TEXARKANA, Texas – Three Houston men have been sentenced to prison for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Marvin Charles Collins, 33; Aqunis Marquis Green, 23; and Antonio Thomas Foster, 21; each pleaded guilty on July 19, 2022, to conspiracy to commit bank theft. Today, Collins was sentenced to 29 months in federal prison and ordered to pay restitution of $257,789; Green was sentenced to 46 months in federal prison and ordered to pay restitution in the amount of $70,324; and Foster was sentenced to 21 months in federal prison and ordered to pay restitution of $70,324. The sentencing hearings were held in front of U.S. District Judge Robert W. Schroeder, III.
According to information presented in court, Collins, Green, and Foster, along with four other co-conspirators, conspired 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.
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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Liberty County Man and Woman Behind My Buddy Loans Sentenced for Fraud Related to COVID ReliefRead the Press Release
TEXARKANA, Texas– A Cleveland, Texas man and woman have been sentenced to federal prison for wire fraud violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Clifton Pape, 47, and Sally Jung, 59, each pleaded guilty on May 6, 2022 to wire fraud violations and were sentenced to federal prison today by U.S. District Judge Robert W. Schroeder III. Pape was sentenced to 121 months in federal prison and Jung received a sentence of 66 months in federal prison. They were also ordered to forfeit $680,710.31 and pay more than $3.7 million in monetary penalties.
According to court documents, Pape and Jung operated a sophisticated telemarketing scheme under the name My Buddy Loans from a house in Cleveland, Texas. In exchange for a fee, My Buddy Loans took personal identifying information from victims and promised to file an application for an agricultural grant, which they said was available to those who owned as little as one acre of land. Instead, Pape and Jung actually filed fraudulent EIDL applications with the SBA that contained the victims’ personal identification information. Based on these fraudulent applications, the SBA issued more than $1.56 million in EIDL Advances to people who were not eligible. Pape and Jung also submitted applications for an additional $1.44 million in EIDL Advances that were not funded because--among other reasons--the congressionally appropriated funds for the EILD Advance program were exhausted.
Pape and Jung used Square’s credit and debit card processing service to charge third parties the fee. Pape and Jung completed at least 700 successful charges, obtaining at least $700,000 in fees. Pape and Jung then transferred the proceeds of the fraud scheme into a bank account they controlled. On one occasion, Pape used the fraud proceeds to pay a traffic ticket. On another occasion, Pape and Jung used more than $3600 from the fraud scheme to pay for a stay at La Cantera Resort in San Antonio. A picture from that stay shows Pape and Jung celebrating over sparkling wine and other beverages.
“This investigation closed down one of the largest COVID fraud schemes in the country in terms of the number of fraudulent EIDL applications,” said U.S. Attorney Brit Featherston. “Well intended and needed economic assistance (taxpayer dollars) was brazenly stolen from legitimate deserving applicants. We are asking those with information about the My Buddy Loan fraud scheme, including those who believe they may be victims, to call the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or file a complaint using the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.”
“The Small Business Administration’s Economic Injury Disaster Loan program (EIDL) was designed to help businesses adversely affected by the pandemic,” said Resident Special Agent in Charge William Mack of the U.S. Secret Service Tyler Resident Office. “Clifton Pape and Sally Jung, however, viewed the government’s direct response to the unprecedented size and scope of pandemic relief fraud as an opportunity to illicitly line their own pockets. As this sentencing illustrates, the Secret Service, along with its law enforcement partners, is committed to holding these criminals accountable for their fraudulent activities.”
“Conspiring to defraud SBA’s programs is a flagrant attempt to rob the nation’s small businesses of vital funds that are used to assist in building the economy,” said SBA OIG’s Central Region Special Agent in Charge Sharon Johnson. “OIG is focused on rooting out bad actors in these vital SBA programs. I want to thank the Department of Justice and our law enforcement partners for their dedication to justice.”
The CARES Act is a federal law enacted in March 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization or EIDL advances and low-interest loans to small businesses to meet financial obligations and operating expenses that could have been met had the disaster not occurred. Under the EIDL program applicants were eligible for a forgivable advance of up to $10,000 if the applicant had ten or more employees.
This case was investigated by the U.S. Secret Service and the Small Business Administration-Office of Inspector General and prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
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Dallas Man Indicted for Trafficking Deadly FentanylRead the Press Release
PLANO, Texas – A Dallas man has been indicted for federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Brian Demarcus Davis, also known as “Tink”, 37, was named in a four-count indictment returned by a federal grand jury on Nov. 9, 2022 in the Eastern District of Texas. The indictment charges Davis with multiple federal violations including conspiracy to distribute fentanyl, heroin, and methamphetamine, and possession of a firearm in furtherance of narcotics trafficking. Davis made his initial appearance on Nov. 21, 2022, before U.S. Magistrate Judge Kimberly C. Priest Johnson.
According to the indictment, in September 2022, the North Texas OCDETF Strike Force 2 (SF2), with the assistance of the Dallas Police Department and the Collin County Sheriff's Office, began investigating Dallas-based drug traffickers selling fentanyl and fentanyl-laced heroin. Deconfliction efforts found that Dallas PD had previously executed a search warrant on a “trap” house run by the targets of the SF2 investigation, resulting in the recovery of kilograms of methamphetamine, a half kilogram of raw powdered fentanyl, firearms, and body armor. Davis was identified as a possible fentanyl & heroin source of supply and ultimately alleged to be responsible for an overdose death in Collin County.
If convicted, Davis faces up to life in federal prison.
This case is being investigated by the U.S. Postal Inspection Service; U.S. Marshals Service; IRS-Criminal Investigations; Dallas Police Department; Collin County Sheriff's Office; and Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Heather Rattan.
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.
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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Two Indicted in Cryptocurrency Money Laundering ConspiracyRead the Press Release
TYLER, Texas – A Nevada man and a South Carolina man have been indicted in a cryptocurrency money laundering conspiracy in the Eastern District of Texas, announced U.S. Attorney Brit Featherston.
Randall V. Rule, 71, of Reno, NV, and Gregory C. Nysewander, 64, formerly of Irmo, SC, were named in an indictment returned by a federal grand jury this week, charging them with money laundering conspiracy, money laundering, and a conspiracy to violate the Bank Secrecy Act.
According to the indictment, Rule and Nysewander are alleged to have conspired with others to launder the proceeds of wire fraud and mail fraud schemes through cryptocurrency. The defendants converted funds from romance scams, business email compromises, and real estate scams, and other fraudulent schemes into cryptocurrency and sent the cryptocurrency to accounts controlled by foreign and domestic co-conspirators. The defendants and their co-conspirators made false representations and concealed material facts, in order to avoid discovery of the fraudulent nature of deposits, wires, and transfers, such as providing instructions to co-conspirators and victims to label wire transfers as “loan repayments” and “advertising.” The defendants also made false representations and concealed material facts when completing account opening documents and when communicating with financial institutions and cryptocurrency exchanges. During the course of the conspiracy, Rule, Nysewander, and their co-conspirators allegedly laundered more than $2.4 million. Rule and Nysewander are also charged with willfully violating the money services business requirements of the Bank Secrecy Act.
If convicted, Rule and Nysewander face up to 20 years in federal prison on each money laundering charge and up to 5 years in federal prison on the conspiracy to violate the Bank Secrecy Act charge. 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.
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 being investigated by the U.S. Secret Service and the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
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Collin County Dentist Guilty of COVID-19 Relief Related FraudRead the Press Release
SHERMAN, Texas – A Plano, Texas, dentist has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Brian Bui, 42, of Plano, pleaded guilty to wire fraud before U.S. Magistrate Judge Christine L. Stetson on Nov. 17, 2022.
According to court documents, Bui used his dentistry business to obtain at least two Paycheck Protection Program (PPP) loans by submitting materially false application paperwork, including fabricating supporting documentation and lying about the number of employees and monthly payroll expenses. As a result of his conduct, he obtained approximately $1.89 million in forgivable loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Bui used the funds in a manner not authorized by the program, including for non-business, personal investments.
Under federal statutes, Bui faces up to 30 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 being investigated by the Federal Bureau of Investigation.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Argyle Fire Chief Indicted for Federal ViolationsRead the Press Release
PLANO, Texas – The former Argyle Fire Chief has been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Troy Mac Hohenberger, 63, was named in a federal indictment returned by a federal grand jury on Nov. 17, 2022, in the Eastern District of Texas. The indictment charges Hohenberger with multiple federal violations related to misuse and theft of funds from the Argyle Fire District, Inc. operating account, along with making false statements to the Department of Labor. Hohenberger made his initial appearance today before U.S. Magistrate Judge Kimberly C. Priest Johnson.
According to the indictment, Hohenberger, while chief of the Argyle Fire Department, is alleged to have taken money from the operating account of the fire district (which received federal funds in the form of Medicare reimbursements) and used over $490,000 of those funds to pay personal credit card bills. The indictment also alleges these personal credit card expenses included cash advances at casinos, payments related to a family member’s business in Hawaii, and other personal uses. Hohenberger is also alleged to have failed to fund firefighter retirement accounts in the time required by federal regulations and thus embezzled or stole the funds, and that he made false statements related to the ERISA-qualified firefighter retirement plan on a form submitted to the Department of Labor.
If convicted, Hohenberger faces up to 10 years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and the Department of Labor – EBSA.
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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Two High-Ranking Los Zetas Cartel Members Latest Sentenced to Federal Prison for Drug Trafficking in the Eastern District of TexasRead the Press Release
PLANO, Texas– Two Los Zetas Cartel leaders has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Jose Maria Guizar-Valencia, 43, of Tulare, CA, pleaded guilty on Dec. 20, 2021, to conspiracy to possess with intent to distribute five kilograms or more of cocaine and conspiracy to commit money laundering and was sentenced to 480 months in federal prison on Nov. 15, 2022, by U.S. District Judge Richard A. Schell.
Francisco Hernandez-Garcia, 53, of San Luis Potosi, Mexico, also pleaded guilty on Dec. 20, 2021, to the same charges and was sentenced to 480 months in federal prison on Nov. 15, 2022, by Judge Schell.
According to information presented in court, in approximately January 2010, law enforcement authorities began an investigation into the drug trafficking activities of the Los Zetas Drug Trafficking Cartel. The investigation revealed that from 2007 to 2014, members of the cartel were involved in numerous crimes including drug trafficking, money laundering, and firearms trafficking in the Eastern District of Texas and elsewhere. Throughout the investigation, Heriberto Lazcano, a.k.a. “Z-3”, was identified as the leader of the cartel who gave final orders, to include the authorization of killings.
Although Lazcano was identified as the leader of the organization, Miguel Angel Trevino-Morales, a.k.a. “Z-40”, was seen as his equal and controlled the vast majority of the cartel soldiers. Miguel’s brother, Omar Trevino-Morales, a.k.a. “Z-42”, along with Francisco Hernandez-Garcia, a.k.a. “El 2000”, and Jose Maria Guizar-Valencia, a.k.a. “Carlitos” and “Z-43”, were identified as three of the top Los Zetas Cartel leaders. During the investigation, Guizar-Valencia was identified as one of the top leaders of the cartel who was responsible for overseeing the cartel’s drug distribution, firearms trafficking, and bulk cash smuggling. As one the organizations leaders, Guizar-Valencia approved criminal activities conducted by members of the cartel. Under Guizar-Valencia’s leadership, the cartel arranged for the importation of cocaine from Central America to Mexico, which was subsequently distributed throughout the United States. Guizar-Valencia, operating in Guatemala, was responsible for overseeing ton-quantity shipments of cocaine from Guatemala to Mexico and coordinated the transportation of the cocaine from Southern Mexico to Coahuila, Mexico. Guizar-Valencia also managed the receipt of millions of dollars in United States currency obtained from the sale of cocaine in the United States, which was used to pay for firearms purchased in the United States and for cocaine shipments coordinated out of Guatemala on behalf of the cartel.
Guizar-Valencia was identified as the principal boss of William DeJesus Torres-Solarzano, a.k.a. “Mario Ruiz Castillo,” “Comandante W,” and “Comandante William”, and he oversaw and directed the activities of Torres-Solorzano and Horst Walther Overdick-Mejia. Torres-Solorzano and Overdick-Mejia coordinated the cartel’s day-to-day cocaine trafficking operations in Guatemala. Torres-Solorzano was also identified as a high-ranking member of the cartel and a cartel leader in Guatemala.
The sentencings this week are the latest of high-level members of the Zeta Cartel. Hugo Cesar Roman Chavarria received a life sentence, William DeJesus Torres Solorzano received 480 months, and Jose Ramirez received 480 months in October of 2022.
“Amazing effort by law enforcement to bring these dangerous criminals to justice,” said U.S. Attorney Brit Featherston. “Prosecutors and law enforcement agencies conducted a very long-term investigation and coordinated with our international partners to achieve this outcome, they did an outstanding job.”
“The Zetas were known for their ruthless and violent tactics as they distributed their drugs throughout Mexico and the United States,” said Eduardo A. Chávez, Special Agent in Charge of DEA Dallas. “These sentences reflect that the DEA and our law enforcement partners are equally known throughout North Texas as holding those criminals accountable for their deeds to the fullest extent of the law. Good will always prevail and our resolve will never falter.”
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 Department of Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Ernest Gonzalez.
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Jake’s Fireworks Owner Sentenced to 15 years in Federal Prison for Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas– The owner of Jake’s Fireworks has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Jake Ellis Daughtry, 35, of Nederland, pleaded guilty on Jan. 18, 2022, to conspiracy to possess with intent to distribute a date rape drug over the internet to an unauthorized purchaser. Daughtry was sentenced to 180 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, Jake Daughtry was the owner and operator of Right Price Chemicals, a business located in Nederland that sold chemicals nationwide. An investigation of the organization began in 2018 when DEA West Palm Beach, Florida intercepted mail parcels of a chemical identified as 1,4 butanediol, commonly referred to as “BDO.” BDO is a chemical manufactured only for industrial or laboratory use as a floor stripper or vehicle wheel cleaner and is not intended for human consumption. Investigators determined that when BDO is ingested, it immediately metabolizes into GHB (also known as the date-rape drug) with the same effects, causing potential overdoses, addiction, and death. At least two people died after consuming BDO sold by Right Price Chemicals. Toxicology analysis determined that a GHB overdose was the cause of death in each case. Additionally, investigators found two additional victims who injured themselves after overdosing on BDO sold by Right Price Chemicals. Nearly 90 percent of the BDO Right Price Chemicals sold went to residential addresses.
DEA traced the seized parcels to their origination point, Right Price Chemicals, a business located on Twin City Highway in Nederland, Texas, and owned by Jake Daughtry. A seasonal fireworks business called “Jake’s Fireworks” is also operated at that location. Customers from all over the United States were able to order quantities of BDO from the Right Price Chemicals website in small amounts to use for personal consumption. The Daughtry’s continued to sell BDO even after becoming aware that some customers were ingesting the substance for its’ narcotic effect, rather than using it for its intended commercial purpose. Agents determined that since 2016, Right Price Chemicals has distributed approximately 7,000 gallons of BDO over thousands of orders, and that those sales generated $4.5 million. Daughtry and several members of his family who worked for him, were indicted by a federal grand jury on June 3, 2020.
In addition, Jake Daughtry, Joe Daughtry, Sandra Daughtry, and Kip Daughtry agreed to the entry of a permanent injunction that prohibits them, or Right Price Chemicals, to ever sell or distribute BDO to anyone, anywhere, at any point in the future.
“After being notified by Florida law enforcement that this dangerous and lethal chemical was being sold to users for a nefarious purpose, East Texas law enforcement agencies took action to protect the public and prevent others from falling prey to the sale and use of this dangerous substance,” said U.S. Attorney Brit Featherston. “This was a complicated investigation involving numerous investigative agencies and both the criminal and civil divisions of the U.S. Attorney’s Office. Their collaborative efforts have made our community and country a safer place to live.”
“This is an important victory for the American public,” said Special Agent in Charge Christopher J. Altemus, Jr, IRS Criminal Investigation, Dallas Field Office. “Not only is a criminal going to jail for his crimes, but we stopped the distribution of BDO through Right Price Chemicals from being used nefariously and getting into the wrong hands. IRS Criminal Investigation is proud to help protect the public and work alongside our law enforcement partners to bring criminals to justice.”
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 West Palm Beach, Florida, and Beaumont; U.S. Postal Service; Internal Revenue Service-Criminal Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Jefferson County Sheriff's Office. Essential support and coordination was provided by numerous components of DEA headquarters and the Department of Justice’s multi-agency Special Operations Division (SOD). This case was prosecuted by Assistant U.S. Attorneys Christopher Rapp, Donald Carter and Robert Wells.
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Wood County Constable Federally Indicted for Use of Excessive ForceRead the Press Release
SHERMAN, Texas – A federal grand jury has returned an indictment charging an East Texas law enforcement official with federal violations in the Eastern District of Texas.
Kelly Jason Smith, 46, was named in the indictment returned by a federal grand jury on Nov. 10, in Sherman, Texas, charging him with deprivation of rights under color of law.
According to the indictment, on July 25, Smith, the Wood County Precinct 2 Constable, directed his police dog to bite a suspect who did not pose a threat that warranted use of the police dog. These actions resulted in unnecessary bodily injury to the suspect.
If convicted, Smith faces up to 10 years in federal prison.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Brit Featherston for the Eastern District of Texas and FBI Acting Special Agent in Charge James J. Dwyer made the announcement.
The FBI Dallas Field Office is investigating the case and the case is being prosecuted by Assistant U.S. Attorney Tracey Batson for the Eastern District of Texas.
A grand jury indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Port Arthur Man Guilty of Glock Switch ViolationsRead the Press Release
BEAUMONT, Texas – A Port Arthur man has pleaded guilty to federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Frankie Malik Cunningham, 23, pleaded guilty to possession of a machine gun and possession of a firearm in furtherance of a drug trafficking crime. Cunningham entered his guilty plea today before U.S. District Judge Marcia A. Crone.
According to information presented in court, on May 17, 2022, law enforcement officers arrived at a Port Arthur residence where Cunningham was located to serve an outstanding felony warrant. They received consent to search from the owner of the residence and located Cunningham in a bedroom. In the bedroom with Cunningham, they also located two Glock pistols, a rifle with a drum magazine, a pound of suspected marijuana, and several Hydrocodone pills. One of the pistols was outfitted with a “Glock Switch.” A Glock Switch is a device used to convert a standard, legal handgun into a fully automatic machine gun.
At the time, Cunningham was under felony indictment for possession of a controlled substance. Federal law prohibits the possession of a firearm or ammunition while under felony indictment.
Cunningham was indicted by a federal grand jury on July 6, 2022. He faces up to 15 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 being investigated by the Port Arthur Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service and the Jefferson County Sheriff’s Office. This case is being prosecuted by Special Assistant U.S. Attorney Tommy Coleman with assistance from the Jefferson County District’s Attorney’s Office.
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Orange County Man Sentenced for Federal Drug Trafficking and Firearms OffensesRead the Press Release
BEAUMONT, Texas– A Bridge City man has been sentenced to federal prison for drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Rian Blayke Savoy, 32, pleaded guilty on June 14, 2022, to possession with intent to distribute five grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. Savoy was sentenced to 137 months in federal prison for the drug trafficking violation and 60 months in federal prison for the firearms violation today by U.S. District Judge Marcia A. Crone. He sentences were ordered to served consecutively for a total of 197 months in federal prison.
According to information presented in court, in the early morning hours of Jan. 30, 2022, Savoy led officers from multiple Orange County, Texas law enforcement agencies on a high-speed chase for several miles through Orange County before eventually being pulled over near the border of Orange and Newton Counties. During the chase, law enforcement officers observed Savoy discarding several objects out of the window of the vehicle as he was driving. Officers were dispatched to the area where Savoy was observed to have thrown objects out of the vehicle during the police pursuit and discovered plastic baggies containing methamphetamine and a firearm. Savoy was indicted by a federal grand jury on April 6, 2022.
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 Bridge City Police Department, the Orange Police Department, the Pinehurst Police Department, the West Orange Police Department, the Orange County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
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Hardin County Man Sentenced to 40 years in Federal Prison for Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – A Lumberton man has been sentenced to 40 years in federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Stephen John Pieper, 26, pleaded guilty on Dec. 9, 2021, to three counts of production of child pornography and was sentenced to 480 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to court documents, an investigation into claims that Pieper had sexually exploited teen girls revealed Pieper had engaged in sexual activity with three victims, aged 15 and 16-years old. As part of the sexual contact with the victims, Pieper used his own cellular phone to record the minors engaged in sexually explicit conduct. Pieper admitted to uploading the videos and images he captured of the victims into Snapchat accounts. Pieper’s exploitation of the three victims spanned 2016 through 2018, during which time Pieper was an adult who was more than 5 years older than his victims. There is evidence that Pieper engaged in sexual activity with at least 11 other minor girls. Pieper was indicted by a federal grand jury on April 7, 2021.
“If this press release does not stop you in your tracks, something is wrong,” said U.S. Attorney Brit Featherston. “26-year-old Pieper will spend the next 40 years in federal prison for the evil crimes he committed. We must all takes steps to protect our most vulnerable population and keep an eye out for child sex abuse. It is our responsibility as citizens, parents, friends and family members to report abuse when it is suspected. The failure to do so is reprehensible.”
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 Homeland Security Investigations and the Texas Attorney General’s Office and prosecuted by Assistant U.S. Attorney Rachel Grove.
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Arkansas Man Sentenced for Federal Drug Trafficking in NacogdochesRead the Press Release
BEAUMONT, Texas– An Ashdown, Arkansas man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Charles Hawkins, Jr., 31, pleaded guilty on June 28, 2022, to distribution and possession with intent to distribute 50 grams or more of 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 Dec. 4, 2020, Hawkins was stopped in Nacogdoches County for speeding in a construction zone. Law enforcement officers noticed the odor of recently sprayed air freshener, which is often used to cover the odor of marijuana. The officer’s canine alerted to the presence of drugs in the vehicle and a search was conducted which revealed three one-gallon size storage bags in the trunk containing approximately 2,449 grams of methamphetamine. Hawkins was indicted by a federal grand jury on April 6, 2022.
This case was investigated by the Nacogdoches Police Department, the Liberty County Sheriff’s Office, and Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Lauren Gaston.
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Houston Man Guilty of Attempting to Use Drone to Drop Contraband into Beaumont Federal Prison ComplexRead the Press Release
BEAUMONT, Texas – A Houston man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Davien Phillip Turner, also known as Davien Phillip Mayo, 44, pleaded guilty to owning or operating a drone that is not registered, today before U.S. District Judge Marica A. Crone.
Prisons around the country have faced the problem of individuals using drones to fly over prison complexes and drop contraband items to the prison population. According to information presented in court, on May 19, 2022, law enforcement officials in Jefferson County, Texas were alerted that a person was operating a drone on the property of the Federal Correctional Complex in Beaumont. Law enforcement officers responded and eventually found Turner in the area where the drone was being operated. Near Turner, officers discovered a DJI Matrice 600 Pro Drone. Law enforcement officers also discovered several bags near the drone that Turner had planned to drop into the prison complex via the drone. Inside those bags were tobacco, cell phones, cell phone chargers, various tools, vape pens, and other items. Those items were to be sold by inmates within the prison. Under federal law, this type of drone was required to be registered with the Federal Aviation Administration, and Turner had failed to do so. Furthermore, to operate a drone under these circumstances, a certificate was needed, which Turner also had not obtained.
Turner was indicted by a federal grand jury on July 12, 2022. He faces up to three 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 is being investigated by the FBI, the Bureau of Prisons, the Jefferson County Sheriff’s Office, and the Federal Aviation Administration. This case is being prosecuted by Assistant U.S. Attorney Russell James.
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Mexican National Sentenced for East Texas Firearms ViolationRead the Press Release
TYLER, Texas – A Mexican national was sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Angel Emmanuel Solano-Calvillo, 32, of Mexico, pleaded guilty on April 19, 2022, to being an illegal alien in possession of a firearm and was sentenced to 46 months in federal prison on Nov. 2, 2022, by U.S. District Judge J. Campbell Barker.
According to information presented in court, on Jan. 11, 2022, Solano was stopped by officers with the Jacksonville Police Department for a traffic violation. During the traffic stop, it was revealed that Solano was an undocumented Mexican citizen in possession of an AR-style rifle, a 9mm pistol, approximately 800 rounds of ammunition, a tactical vest with six 30-round magazines, methamphetamine with distribution paraphernalia, a police scanner, an inert hand grenade, two drones, and portable handheld radios. Following his arrest, Solano admitted his unlawful immigration status and confessed to his participation in distributing methamphetamine. Solano was indicted on Jan. 20, 2022 and charged with federal firearms violations.
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 Homeland Security Investigations – Tyler Field Unit, the Cherokee County Sheriff’s Office and the Jacksonville Police Department and was prosecuted by Assistant U.S. Attorney Lucas Machicek.
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Port Neches, Houston Men Guilty of Trafficking Fentanyl through Southeast TexasRead the Press Release
BEAUMONT, Texas – Two Southeast Texas men have pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Arthur Wilson McDaniels, 46, of Houston. and Marcus Terrance Weathersby, 49, of Port Neches, each pleaded guilty to drug trafficking violations today before U.S. Magistrate Judge Zack Hawthorn.
According to court documents, beginning in January 2022, local law enforcement and federal agents began an investigation into a drug trafficking conspiracy involving phencyclidine (PCP) and fentanyl in Jefferson County. The investigation revealed McDaniels was supplying drugs from Houston to Weathersby in Port Neches for further distribution in the area. Law enforcement ultimately seized approximately 1.7 kilograms of PCP and three ounces of fentanyl during the course of the investigation. McDaniels and Weathersby were indicted by a federal grand jury on May 11, 2022.
McDaniels pleaded guilty today to conspiracy to possess with intent to distribute PCP and fentanyl. Weathersby pleaded guilty to conspiracy to possess with intent to distribute fentanyl.
“If you are dealing dangerous drugs in our community we are coming after you,” said U.S. Attorney Brit Featherston. “These drugs are capable of killing many people. There is a dangerous wave of illegal fentanyl poisoning our citizens. Please talk about this, discuss this, share this message with others to save a life. In 2022, fentanyl is suspected of killing more Americans than car crashes and gun crimes combined. This is a problem.”
McDaniels faces up to 40 years in federal prison. Weathersby faces up to life in federal prison. The maximum statutory sentences prescribed by Congress are provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
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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Denton County Man Guilty of Child Pornography ViolationsRead the Press Release
SHERMAN, Texas – A Denton County man has pleaded guilty to federal child pornography violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
James Buck Briggs, 48, of The Colony, pleaded guilty to two counts of distributing child pornography today before U.S. District Judge Amos Mazzant. Briggs entered his guilty plea during his federal trial on the charges.
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.
Briggs faces up to 20 years in federal prison for each count 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 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 is being investigated by the Federal Bureau of Investigation’s Frisco Field Office and the Plano Police Department. This case is being prosecuted by Assistant U.S. Attorneys Lesley Brooks and Maureen Smith.
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Florida Woman Indicted in Cryptocurrency Money Laundering SchemeRead the Press Release
TYLER, Texas – A 37-year-old Florida woman has been indicted in a cryptocurrency money laundering scheme in the Eastern District of Texas, announced U.S. Attorney Brit Featherston.
Sharena Seay, of Jacksonville, FL, was named in an indictment returned by a federal grand jury, charging her with money laundering. She was arraigned in federal court by U.S. Magistrate Judge John D. Love.
According to the indictment, Seay is alleged to have laundered the proceeds of her drug trafficking operations through cryptocurrency. The defendant allegedly supplied alpha-Pyrrolidinopentiophenone (alpha-PVP), which is often called “flakka,” and similar synthetic cathinones, such as Eutylone or alpha-PiHP. Seay distributed alpha-PVP and other controlled substances to various customers across the United States. Customers who purchased controlled substances from Seay paid for their purchases with cash. Seay laundered the cash proceeds through cryptocurrency in order to purchase more controlled substances on the dark web and to conceal her criminal activity.
During the course of the conspiracy, Seay allegedly laundered more than $1.2 million.
On August 17, 2022, a federal grand jury in the Eastern District of Texas returned a five-count indictment charging Seay with money laundering and aiding and abetting.
If convicted, Seay faces up to 20 years in federal prison on each charge. 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.
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 being investigated by the U.S. Secret Service and the U.S. Postal Inspection Service and is being prosecuted by Assistant U.S. Attorney Nathaniel C. Kummerfeld.
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Beaumont Felon Sentenced for Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced for a federal firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Gregory Cherry, Jr., 40, pleaded guilty on June 6, 2022, to being a felon in possession of a firearm and was sentenced to 51 months in federal prison by U.S. District Judge Marcia A. Crone on Oct. 20, 2022.
According to information presented in court, on August 1, 2022, law enforcement officers responded to a report that an individual had a firearm and was arguing with another person in a gas station parking lot in Beaumont. Officers encountered Cherry, who matched the description of the person who was reported as having the firearm. As officers approached Cherry, he began running from the officers. After a brief foot pursuit, officers caught Cherry, and Cherry resisted arrest. During the struggle Cherry was able to retrieve a firearm from his pocket and throw it a short distance away. One officer was injured during the struggle with Cherry. Cherry was eventually taken into custody and officers were able to recover the firearm.
Further investigation revealed Cherry is a convicted felon and prohibited by federal law from owning or possessing firearms or ammunition. Cherry was indicted by a federal grand jury on April 6, 2021.
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 Russell James.
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Houston Man Guilty of Trafficking Drugs through Southeast TexasRead the Press Release
BEAUMONT, Texas – A Houston man has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Michael Tran, 31, pleaded guilty to possession with intent to distribute methamphetamine today before U.S. Magistrate Judge Christine L. Stetson.
According to court documents, on Oct. 15, 2020, law enforcement conducted a traffic stop on Tran for unsafely crossing through the Exxon station parking lot, located at the corner of College Street and Major Drive in Beaumont. Tran was stopped nearby at South Major Drive and Willow Bend Road, where law enforcement immediately noticed an overwhelming odor of marijuana coming from inside the vehicle. A search of the vehicle revealed 6.4 pounds of marijuana, 305 grams of fentanyl pills, 305 grams of methamphetamine pills, and $50,392.00 in cash, located in a false compartment in the backseat. Tran was indicted by a federal grand jury on April 6, 2022 and charged with federal drug trafficking violations.
“If you are dealing dangerous drugs in our community we are coming after you,” said U.S. Attorney Brit Featherston. “These drugs are capable of killing many people. There is a dangerous wave of illegal fentanyl poisoning our citizens. Please talk about this, discuss this, share this message with others to save a life. In 2022, fentanyl is suspected of killing more Americans than car crashes and gun crimes combined. This is a problem.”
Tran faces up to 40 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 was investigated by the U.S. Drug Enforcement Administration and the Jefferson County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Michael Anderson.
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Colombian Attorney Sentenced for Obstruction of Justice in Eastern District of TexasRead the Press Release
PLANO, Texas – A Colombian lawyer has been sentenced for federal obstruction violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Maritza Claudia Fernanda Lorza Ramirez, 49, was convicted on June 10, 2022, of obstruction of justice and aiding and abetting. Ramirez was sentenced to 90 months in federal prison today by U.S. District Judge Sean D. Jordan.
A peace agreement signed in 2016 between the Colombian government and members of the Revolutionary Armed Forces of Colombia (FARC) ended a conflict between the two, and guaranteed members of the FARC that they would not be extradited for crimes committed before December 1, 2016, in furtherance of the insurgency.
According to information presented in court, beginning in 2016, Ramirez, a Colombian attorney, informed at least seven defendants indicted in the Eastern District of Texas and multiple defendants indicted in the Middle and Southern Districts of Florida, that she could help them avoid extradition to the United States and that she could corruptly assist them in adding their names to the list of FARC members to avoid extradition to the United States. As a result, on-going criminal investigations were affected as these defendants would not cooperate with investigators or prosecutors. In exchange, Ramirez was paid in excess of $3 million USD by the large-scale Colombian drug traffickers. Ramirez was indicted by a federal grand jury in the Eastern District of Texas on May 10, 2018.
“Ramirez offered services to Colombian drug traffickers, who were not members of the FARC, promising them they could be fraudulently placed on the FARC list and avoid extradition to and prosecution in the United States,” said U.S. Attorney Brit Featherston. “Not only did Ramirez’s actions pervert the rule of law and the peace process in Colombia, but they also hindered ongoing investigations which facilitated the flow of illegal drugs into the U.S. by protecting dangerous drug traffickers. The investigators and prosecutors in this case did an amazing job coordinating with our Colombian partners. We applaud the effort by agents of the DEA and our Colombian partners to bring Ramirez to justice.”
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case was investigated by the Drug Enforcement Administration Offices from the Dallas Field Division, Miami Field Division, and the Bogota Country Office. This case was prosecuted by the U.S. Attorney’s Office in the Eastern District of Texas with special assistance from the U.S. Attorney’s Offices in the Middle and Southern Districts of Florida.
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Driver who Killed Sheriff’s Deputy Indicted for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Kountze man has been indicted for a federal firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Michael David Miller, 38, was named in an indictment returned by a federal grand jury on Oct. 5, 2022, charging him with possession of a firearm by a prohibited person. Miller appeared in federal court before U.S. Magistrate Judge Christine L. Stetson on Oct. 17, 2022, 2022, and was ordered to be detained pending a detention hearing.
According to information presented in court, on July 10, 2022, Miller was driving a vehicle on a rural road in the Fannett community when he allegedly failed to negotiate a turn while speeding causing the vehicle to strike a drainage ditch and land on a riding lawnmower being operated by an off-duty Jefferson County Sheriff’s Deputy. The impact killed Deputy James Lee on impact. According to law enforcement officers, Miller exhibited signs of intoxication and was arrested for the state offense of intoxication manslaughter. A firearm was found in the vehicle following the incident. Further investigation revealed Miller had previously been convicted of a crime of domestic violence and is prohibited from owning or possessing firearms or ammunition.
If convicted, Miller faces up to 15 years in federal prison.
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.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the Texas Department of Public Safety, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Jefferson County District Attorney’s Office and prosecuted by Special Assistant U.S. Attorney Tommy Coleman.
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