Eastern District of Texas

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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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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, 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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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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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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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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PLANO, Texas – A Dallas man has been sentenced to federal prison for drug violations related to a 2019 overdose in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Jose Antonio Carreto, 31, was convicted by a jury on June 1, 2021, of conspiracy and distribution of heroin resulting in seriously bodily injury, conspiracy to possess with intent to distribute and distribution of methamphetamine, and possession with intent to distribute and distribution of heroin resulting in serious bodily injury aiding and abetting.  Carreto was sentenced to 360 months in federal prison by U.S. District Judge Sean D. Jordan on Oct. 13, 2022.

According to information presented in court, on Sep. 25, 2019, law enforcement authorities responded to a heroin overdose on a Plano highway.  The victim was administered Narcan and survived the overdose.  An investigation revealed that Carreto and his brother, Isauro Carreto-Cruz, had supplied the heroin used in the overdose. 

“This case highlights the dangers of illegal drug use,” said U.S. Attorney Brit Featherston.  “Although dangerous alone, street heroin often contains chemicals that can cause death or serious bodily injury.  We are seeing a drastic increase in illegal drugs poisoned with illegal fentanyl that are causing many deaths around the country.  We will take all action within our power to investigate and prosecute those who spread this poison in our communities.  We appreciate the great work by the investigators and prosecutor in this case.”

Jose Antonio Carreto and Isauro Carreto-Cruz were indicted by a federal grand jury on Nov. 13, 2019 and both were convicted at trial in June 2021.  Isauro Carreto-Cruz was sentenced to 78 months in federal prison on March 11, 2022.

This case was investigated by the Plano Police Department, the Texas Department of Public Safety and the Plano Fire Department and prosecuted by Assistant U.S. Attorney Ernest Gonzalez. 

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TYLER, Texas – A Baton Rouge, Louisiana, man has been sentenced for a federal firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Marland Gibson, 53, was found guilty at trial on April 27, 2022, of being a felon in possession of a firearm and was sentenced to 48 months in federal prison on Oct. 12, 2022, by U.S. District Judge J. Campbell Barker.

According to information presented in court, on March 20, 2021, Gibson was stopped for speeding on Interstate-20 in Gregg County.  During the traffic stop, it was determined Gibson had an outstanding warrant for failing to appear in Marion County, Indiana on a charge of unlawful possession of a firearm by a serious violent felon.  Gibson was arrested on the warrant and a search of the vehicle revealed not only a handgun hidden in a compartment behind the vehicle’s dashboard, but a suitcase in the rear of the vehicle containing another firearm and multiple rounds of assorted ammunition.

Further investigation revealed Gibson is a convicted felon and prohibited by federal law from owning or possessing firearms or ammunition.  Gibson was indicted by a federal grand jury on June 17, 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, the Texas Department of Public Safety and the Gregg County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Jim Noble.

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TEXARKANA, Texas – A Texarkana, Arkansas, man has been charged in a federal complaint with violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today. 

Brandon Neil Sams, 46, appeared before U.S. Magistrate Judge Boone Baxter on Oct. 7, 2022, on a federal complaint charging him with enticement of a minor and obstruction of justice.     

According to the complaint and information presented in court, from March 2022 through September 2022, Sams, while serving as a band instructor at Texas High School, allegedly attempted to entice or persuade a minor to engage in sexual activity.  On Sep. 26, 2022, Sams allegedly attempted to obstruct or conceal information from law enforcement. 

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.

If convicted, Sams faces from 10 years to life in federal prison.

This case is being investigated by Homeland Security Investigations and the Texarkana Independent School District.  This case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.

An indictment or complaint 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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TYLER, Texas – A San Francisco, CA man has been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

John Khuu, 27, was named in an indictment returned by a federal grand jury charging him with money laundering conspiracy.  Khuu was arraigned in federal court by U.S. Magistrate Judge John D. Love on Oct. 6, 2022.

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 May 18, 2022, a federal grand jury in the Eastern District of Texas returned an indictment charging Khuu with conspiracy to commit money laundering.  On August 17, 2022, a federal grand jury in the Northern District of California returned a two-count indictment charging Khuu with unlawful importation of a controlled substance. 

On August 19, 2022, agents arrested Khuu pursuant to both warrants at a residence in Garden Grove, CA.

If convicted, Khuu 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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SHERMAN, Texas– A Ponte Vedra, Florida, man has pleaded guilty to international smuggling violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Eddy Johan Coopmans, 61, pleaded guilty to conspiracy to smuggle goods out of the United States and to violate the International Emergency Economic Powers Act, before U.S. Magistrate Judge Christine Nowak on Oct. 4, 2022.

According to information presented in court, Coopmans and another individual who is a foreign national agreed to illegally export controlled technology, specifically Space Grade Field Programmable Gate Array Circuits, to Russia and China.  As part of their scheme, Coopmans and his co-conspirator communicated with individuals whom they believed would help them smuggle the circuits, paid them approximately $1,217,100 USD, and made false statements to government regulators.

Coopmans was indicted by a federal grand jury on August 13, 2019.  He faces up to 5 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 Homeland Security Investigations and the Federal Bureau of Investigation with assistance from Department of Commerce - Bureau of Industry and Security; Department of Defense Criminal Investigative Services; Internal Revenue Service – Criminal Investigation; and United States Postal Inspection Service.  Assistant U.S. Attorneys in the Eastern District of Texas and Attorneys with the National Security Division assisted with the prosecution. 

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SHERMAN, Texas – An Allen man has been found guilty of multiple federal violations related to a fraud scheme that included the murder of a Carrollton man, announced Eastern District of Texas U.S. Attorney Brit Featherston today.

Keith Todd Ashley, 50, was found guilty by a jury of wire fraud, mail fraud, carrying a firearm in relation to a crime of violence and bank fraud.  The verdict was reached today following a week-long trial before U.S. District Judge Amos L. Mazzant.

According to information presented at trial, beginning in 2016, Ashley, a registered nurse who also began working as a financial advisor and life insurance agent, started stealing money from his clients.  Ashley promised his clients he would invest their money in financial products but instead used the funds to pay other clients, to keep his struggling brewery in business, to pay his personal bills and to fund a lavish lifestyle.  In May 2016, Ashley began stealing investment funds from a Carrollton man.  This scheme included transferring the client’s money into his personal accounts and changing the beneficiary of the man’s life insurance to a trust controlled by Ashley.  The scheme eventually resulted in the Feb. 19, 2020, murder of the client, which Ashley attempted to stage as a suicide.  Even after the client was killed, Ashley went through elaborate steps to collect on the life insurance policy, transfer funds from the victim’s bank account to himself, and attempt to obtain a copy of the victim’s autopsy report.  Ashley was indicted by a federal grand jury on Nov. 12, 2020, and has been charged with various federal violations, including wire fraud, mail fraud and firearms violations.   

“Ashley went to great lengths to defraud clients that trusted him,” said U.S. Attorney Brit Featherston.  “By plotting and causing the death of one client to steal his money, Ashley committed the ultimate betrayal of trust and decency and the jury saw Ashley for who he is, a con-artist who would go so far as murder to get what he wanted.  Incredible work by investigators and prosecutors, as well as coordination between the Feds and the State have succeeded in getting this depraved criminal off the street.”  

“Keith Ashley’s desire for wealth and comfort outweighed his ability to uphold his professional responsibility in both the medical and financial fields. He failed to act in the best interests of his clients and instead robbed them of their financial security, in this specific instance, he also ended a life,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “We will continue to seek justice for victims of these deceitful schemes, and I am grateful for the collaborative and investigative work performed by local and federal law enforcement on this case.”

Ashley faces up to life in federal prison at sentencing.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case was investigated by the Federal Bureau of Investigation – Frisco Resident Agency, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Dallas County District Attorney’s Office, and the Carrollton Police Department.  This case was prosecuted by Assistant U.S. Attorneys Heather Rattan and Jay Combs and Special Assistant U.S. Attorney Jason Fine.

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BEAUMONT, Texas– Three Southeast Texas men have pleaded guilty to firearms offenses in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Michael Lawrence Geral, Jr., 35, of Orange; Joseph Jarred Thibodeaux, also known as Pitt, 34, of Orange; and Eric Emerson, 52, of Beaumont, each pleaded guilty of being a felon in possession of a firearm in separate hearings today before U.S. District Judge Marcia A. Crone.  

According to information presented in court, on Dec. 13, 2021, Geral was stopped for a traffic violation by officers with the Orange Police Department.  As officers spoke with Geral, they smelled the odor of burnt marijuana coming from the vehicle.  Officers searched the vehicle and found a firearm which Geral admitted was his.  Geral is a previously convicted felon and prohibited from possessing firearms. 

On March 7, 2022, law enforcement officers with the Orange Police Department responded to an incident where Thibodeaux was said to have fired several shots from his vehicle towards another vehicle in Orange, some of which hit another vehicle.  Officers arrested Thibodeaux and a search of his vehicle revealed a firearm under the driver’s seat and several used shell casings.  Thibodeaux was also found to be a previously convicted felon and prohibited by federal law from owning or possessing firearms or ammunition. 

On March 28, 2022, law enforcement officers with the Beaumont Police Department responded to a call of a burglary alarm going off at a local business located on West Cardinal Drive, in Beaumont.  When officers arrived at the business, they observed a lone vehicle parked near the business.  Emerson exited the vehicle.  As officers investigated the scene, they observed a firearm on the passenger seat of the vehicle Emerson had exited.  Further investigation revealed Emerson was a previously convicted felon and prohibited from owning or possessing firearms or ammunition.   

The defendants each face 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.

These cases were prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.  As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

These cases were investigated by the Bureau fo Alcohol, Tobacco, Firearms and Explosives, the Orange Police Department, and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Russell James.

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BEAUMONT, Texas – The Eastern District of Texas announced today that as part of its continuing efforts to protect older adults and to bring perpetrators of fraud schemes to justice, it is joining the Justice Department’s Transnational Elder Fraud Strike Force, as one of 14 additional U.S. Attorney’s Offices. Since 2019, current Strike Force members — including the Department’s Consumer Protection Branch, six U.S. Attorneys’ Offices, the FBI, U.S. Postal Inspection Service and Homeland Security Investigations — have brought successful cases against the largest and most harmful global elder fraud schemes and worked with foreign law enforcement to disrupt criminal enterprises, disable their infrastructure and bring perpetrators to justice. Expansion of the Strike Force will help to coordinate the Department’s ongoing efforts to combat sophisticated fraud schemes that target or disproportionately impact older adults. The expansion will increase the total number of U.S. Attorneys’ Offices comprising the Strike Force from six to 20, including all of the U.S. Attorneys’ Offices in the states of California, Arizona, Texas, Florida, Georgia, Maryland and New York.

 “We are intensifying our efforts nationwide to protect older adults, including by more than tripling the number of U.S. Attorneys’ offices participating in our Transnational Elder Fraud Strike Force dedicated to disrupting, dismantling and prosecuting foreign-based fraud schemes that target American seniors,” said Attorney General Merrick B. Garland. “This expansion builds on the Justice Department’s existing work to hold accountable those who steal funds from older adults, including by returning those funds to the victims where possible.”

“To this day the greatest generation remains the backbone for supporting truth and justice and the American way; knowing better than most what exceptional sacrifices ordinary Americans made to keep our country free,” said Eastern District of Texas U.S. Attorney Brit Featherston.  “Unfortunately, those amazing senior citizens now face a target on their own back from cowardly swindlers who attempt to take advantage of them.  It’s our turn to give back by helping prevent crimes committed by thieves who lurk at the end of a phone or computer screen.   All of us should make it a priority to prevent our seniors from falling prey to these criminals and know that anyone who harms our greatest generation will be hunted down and prosecuted, for that you have our commitment.” 

The Strike Force expansion will further enhance the Department’s existing efforts to protect older adults from fraud and exploitation. During the period from September 2021 to September 2022, Department personnel and its law enforcement partners pursued approximately 260 cases involving more than 600 defendants, both bringing new cases and advancing those previously charged. The matters tackled by the Department and its partners ranged from mass-marketing scams that impacted thousands of victims to bad actors scamming their neighbors. Substantial efforts were also made over the last year to return money to fraud victims.

As part of its elder fraud efforts, the Eastern District of Texas engaged in outreach to the community to raise awareness about scams and exploitation and preventing victimization. This year, the Eastern District of Texas participated in events to provide educational programming to seniors such as presentations provided to tenants of the Plaza Tower in downtown Tyler; local Rotary Clubs; the Hamptons of Tyler, a retirement community; residents of the Pecan Place Senior Apartments in Bonham; the Texoma Senior Center in Sherman; and a church in Beaumont.    Groups or organizations in the Eastern District of Texas that are interested in securing a speaker for their event should contact Assistant U.S. Attorney Camelia Lopez at the Plano U.S. Attorney’s Office at 972-509-1201.

The Department also highlighted other efforts, including the indictment of individuals in the  Eastern District of Texas who were charged in September 2021 with, allegedly, facilitating a range of schemes, including romance scams. 

In the past year, the Department has notified over 550,000 people that they may be eligible for payments. Notifications were made to consumers whose information was sold by one of three data companies prosecuted by the Department and were later victims of “sweepstakes” or “astrology” solicitations that falsely promised prizes or individualized services in return for a fee. More than 150,000 of those victims cashed checks totaling $52 million, and thousands more are eligible to receive checks. Also notified were consumers who paid fraudsters perpetrating person-in-need scams and job scams via Western Union. In the past year, the Department has identified and contacted over 300,000 consumers who may be eligible for remission. Since March of 2020 more than 148,000 victims have received more than $366 million as a result of a 2017 criminal resolution with Western Union for the company’s willful failure to maintain an effective anti-money laundering program and its aiding and abetting of wire fraud.

Over the past year, the Department pursued cases against the perpetrators of “grandparent scams,” otherwise known as “person-in-need scams.” These scams typically begin when a fraudster, often based overseas, contacts an older adult and poses as either a grandchild, other family member or someone calling on behalf of a family member. Call recipients are told that their family member is in jeopardy and is urgently in need of money. When recently sentencing one of eight perpetrators of a grandparent scam indicted under the Racketeer Influenced and Corrupt Organizations Act, a federal judge described such scams “heartbreakingly evil.” The Department is working with government partners and others to raise awareness about these schemes.

Reporting from consumers about fraud and fraud attempts is critical to law enforcements efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This Department of Justice Hotline, managed by the Office for Victims of Crime, is staffed by experienced professional who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. Eastern Time.  English, Spanish and other languages are available. More information about the Department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov.

Some of the cases that comprise today’s announcement are charges, which are merely allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.   

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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.

Robert Lee Anderson, 46, pleaded guilty on June 6, 2022, to being a felon in possession of a firearm and was sentenced to 36 months in federal prison today by U.S. District Judge Marcia A. Crone.

According to information presented in court, on March 21, 2022, law enforcement officers noticed a vehicle they knew to be stolen parked in a lane of traffic with its lights off near French Road in Beaumont.  Officers observed Anderson walking away from the vehicle and instructed him to stop.  Instead, Anderson fled through a neighboring yard, throwing a firearm on the roof of a residence.  Anderson was apprehended and the firearm was recovered.  Further investigation revealed Anderson was a convicted felon and prohibited by federal law from owning or possessing firearms or ammunition.  Anderson was indicted on federal firearms violations on April 20, 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 Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney Russell James.

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BEAUMONT, Texas – Two Beaumont men have been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today. 

Decorius Mire, 23, and Donaldvan Williams, 28, were named in an indictment returned by a federal grand jury on Sep. 7, 2022, charging them with animal crushing, and aiding and abetting.  Mire made his initial appearance today before U.S. Magistrate Judge Zack Hawthorn. Williams did the same last week.   

Animal crushing is defined under federal criminal law as, “actual conduct in which one or more living non-human mammals, birds, reptiles, or amphibians, is purposely crushed, burned, drowned, suffocated, impaled, or otherwise subjected to serious bodily injury.”

If convicted, Mire and Williams face up to seven years in federal prison.

This case is being investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.

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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BEAUMONT, Texas – A Nacogdoches man has been sentenced for federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Travis Lane Favro, 47, pleaded guilty on Nov. 4, 2021, to being a felon in possession of a firearm and was sentenced to 80 months in federal prison today by U.S. District Judge Michael Truncale.

According to information presented in court, on Oct. 16, 2019, law enforcement officers responded to a home in Nacogdoches where Favro had reportedly threatened to kill his parents.  The officers went next door to Favro’s residence and found him barricaded inside.  After a brief standoff, Favro surrendered and was arrested.  Officers searched the residence and found a rifle and a shotgun as well as two homemade silencers.  One of the silencers was attached to the rifle, which found near two large capacity magazines: one 60-round drum magazine and one 30-round magazine.  The officers also discovered that one interior wall of the house was fortified with concrete blocks and gunports that opened to the outside.  There was also a large television nearby that monitored multiple cameras placed outside the residence. Further investigation revealed Favro was a convicted felon having been previously found guilty in state court of felon in possession of a firearm and possession of a controlled substance. As a convicted felon, Favro is prohibited by federal law from owning or possessing firearms or ammunition.  Favro was indicted on federal firearms violations on Nov. 6, 2019. 

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 Nacogdoches Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney John B. Ross.

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BEAUMONT, Texas – A Cuban national residing in Groves, Texas has been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Orlando Enrique Quesada-Oliva, 25, pleaded guilty on Feb. 10, 2022 to conspiracy to commit access device fraud and aiding and abetting aggravated identity theft and was sentenced to 30 months in federal prison today by U.S. District Judge Michael Truncale.

According to information presented in court, on Jan. 27, 2017, an officer with the Nacogdoches Police Department conducted a traffic stop on a vehicle driven by Victor Entenza, 30, and occupied by Ricardo Chavez-Travieso, 29, and Oliva, all Cuban nationals.  After the officer discovered a discarded credit card on the ground, near where the driver had been, a search of the vehicle was conducted.  A notepad was found that listed various gas stations in Texas, Tennessee, and Alabama.  The search also produced numerous cell phones, a laptop computer and tape used as a security seal/tamper indicator for gas station fuel pumps.  The officer also located a card skimmer, an encoder, a key used to open gas pumps and credit cards located in hidden compartments within the vehicle.  Credit card information for a total of nine individuals, other than the occupants of the vehicle, was found either on the computer or in the vehicle.  Oliva was indicted on Oct. 8, 2020.  Oliva is the last of the three defendants to be sentenced. Entenza and Travieso, were both previously sentenced to 30 months on the same counts.

“Typically, a skimmer, such as the one found in this case, is placed inside a gas pump and used by criminals to collect credit card information from victims using the pump,” said U.S. Attorney Brit Featherston.  “The intended gas purchase will proceed without interruption of any kind or any notification to the victim or third party,” Featherston added.  “A single gas station skimmer is capable of storing credit card information for hundreds of victims.”

This case was investigated by the Nacogdoches Police Department and Homeland Security Investigations and prosecuted by Special Assistant U.S. Attorney Tommy Coleman.

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SHERMAN, Texas – A Leander man has been sentenced to 48 years in federal prison for fraud and money laundering violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

James Clark Nix, 73, was found guilty by a jury on April 21, 2022, of conspiracy to commit wire fraud, wire fraud, money laundering, and aiding and abetting.  Nix was sentenced to 576 months in federal prison by U.S. District Judge Amos L. Mazzant on Sep. 22, 2022.

According to information presented at trial, James Nix and his son, Bradley Nix, used their businesses, AMIG and NECO, to defraud victim investors of at least $6 million, under the false promise of small business investments and high interest returns of up to 10 percent. Once in possession of the fraudulent funds, James Nix used the money for various expenses such as luxury homes, hotels, and vehicles. During the investigation, investigators lawfully seized a Maserati and Land Rover that were tied to James Nix’s fraudulent conduct. The jury convicted James Nix on all counts - conspiracy, wire fraud, and money laundering. 

“James Nix conned hard working people out of their life savings in order to fund his luxurious lifestyle,” said U.S. Attorney Brit Featherston.  “Nix left a trail of heartache and destruction through each of his victims, and this sentence ensures that he will never victimize another person again.”

“Mr. Nix’s conduct was uniquely sinister and deceptive.  He obtained the trust of his clients, many of whom were his friends, over the course of decades.  He manipulated this trust to obtain their life’s savings and 401ks, while promising them good investments that would provide them with a comfortable retirement.  In reality, Mr. Nix was using this money to operate a Ponzi scheme and fund a life of luxury.  Ultimately, Mr. Nix's lies and greed destroyed his clients’ financial futures and deprived them of their hard earned retirement,” said FBI Dallas Special Agent in Charge Matthew DeSarno.  “Investment fraud is a pervasive threat that affects all ages and demographics.  We encourage the public to conduct due diligence before investing with an individual or business and review FBI online resources on business and investment fraud scams at fbi.gov.”

“Mr. Nix exploited his position as a personal accountant to gain the trust of investors, steal their hard-earned money, and unjustly enrich himself. His elaborate Ponzi scheme was like a ‘house of cards’ - the underlying structure fell apart and left investors in financial ruin,” said IRS Criminal Investigation Special Agent in Charge Christopher J. Altemus, Jr. of the Dallas Field Office. “This sentence reflects the egregiousness of Nix’s crimes and now Nix will spend the rest of his life in prison.”

This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorneys from the Eastern District of Texas.

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BEAUMONT, Texas – A Nacogdoches man has been sentenced for federal drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Timothy Ray Hill, Jr., 28, pleaded guilty on Feb. 17, 2022, to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime and was sentenced to 130 months in federal prison today by U.S. District Judge Marcia A. Crone.  

According to information presented in court, on March 20, 2021, law enforcement officers responded to a private party in San Augustine, Texas where a man was brandishing a firearm.  Upon arrival, a sheriff’s deputy encountered Hill, who was walking toward him with his hand on the grip of a pistol that was protruding from his front pant pocket.  After Hill ignored the deputy’s commands to take his hand off the gun, a police officer deployed his taser against Hill to end the standoff.  The deputy then searched Hill and recovered the loaded pistol, 394 methamphetamine pills, and a large amount of cash. 

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 San Augustine Police Department, the San Augustine County Sheriff’s Office, and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John B. Ross.

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SHERMAN, Texas – An Argyle, Texas man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

David Schoolcraft, 39, pleaded guilty on Dec. 28, 2021, to possession of child pornography and was sentenced to 121 months in federal prison today by U.S. District Judge Amos L. Mazzant.

According to information presented in court, Schoolcraft came to the attention of law enforcement when it was discovered that he was distributing child pornography within a social media application between December 2020 and January 2021.  An investigation revealed that he was engaged in this activity while at the Denton Police Department, where he served as a police officer, as well as at his home in Argyle.  Federal agents served search warrants and met with Schoolcraft in February 2021, at which time Schoolcraft admitted to using a social media application and his cellular phone to trade child pornography.  Schoolcraft admitted to possessing images and videos of prepubescent minors engaged in sexually explicit conduct, including children who were bound and sexually abused by adults.  Schoolcraft was indicted by a federal grand jury on March 10, 2021.

“Children are the most precious and vulnerable members of our society, and justice and basic human decency demands that we do everything in our power to protect them from harm,” said U.S. Attorney Brit Featherston.  “Schoolcraft violated his oath of office as a police officer and the trust of our community, and instead of protecting children he took pleasure in viewing children being sexually exploited and harmed. Although no sentence can make up for the pain he caused, this sentence should put everyone on notice that the Eastern District of Texas will not tolerate this behavior.”

“The details of this case are upsetting not only because it involves the distribution of material exploiting children, but also because the perpetrator was a police officer who was expected to serve and protect his community,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “The FBI and our law enforcement partners consistently work together to hold child predators accountable for their actions. We are also steadfast in our commitment to protect children from individuals who seek to exploit their innocence.”

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, Plano Police Department and Denton Police Department.  This case was prosecuted by Assistant U.S. Attorney Marisa Miller.

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BEAUMONT, Texas – A Beaumont man has been sentenced to 10 years in federal prison for drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Tywayne Marquis Parker, 31, pleaded guilty on Feb. 8, 2022, to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime and was sentenced to 120 months in federal prison today by U.S. District Judge Marcia Crone.

According to information presented in court, on June 21, 2021, Parker was stopped in Beaumont for a traffic violation.  A search of the vehicle revealed two firearms, approximately 100 grams of pills containing methamphetamine, and a large amount of cash and other evidence of drug trafficking. 

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.

 

PLANO, Texas – A Mexican national with dual citizenship has been extradited from Mexico to the United States to face drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today. 

Nazario Cavazos-DeLuna, 59, of Mexico, was indicted by a federal grand jury on Oct. 14, 2010, and charged with continuing a criminal enterprise; conspiracy to distribute or possess with intent to distribute cocaine, methamphetamine, marijuana, or ecstasy; conspiracy to commit money laundering; using or carrying a firearm during a drug trafficking crime or possessing a firearm in furtherance of a drug trafficking crime. 

Cavazos-DeLuna is a dual citizen of Mexico and the United States, receiving his naturalization in October 1995.  Cavazos-DeLuna was arrested in Mexico pursuant to a provisional arrest request by the United States and subsequently, extradited to the United States on Sep. 20, 2022.  He appeared in federal court in Plano, Texas on Sep. 21, 2022, for an initial appearance and arraignment and was ordered to be detained pending trial.   

According to the indictment, Cavazos-DeLuna is the long-term leader of a large-scale, international organization importing large quantities of multiple types of drugs into the United States from Mexico.  The drugs include methamphetamine, cocaine, and marijuana. He was headquartered in the United States but fled to Mexico where he was captured and extradited.

If convicted, Cavazos-DeLuna faces 10 years 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 Homeland Security Investigations and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys in the Eastern District of Texas.

The Justice Department’s Office of International Affairs and Office of Enforcement Operations worked with law enforcement partners in Mexico to secure the arrest and extradition of Cavazos to the United States. Special thanks to the Government of Mexico for their help in the capture and extradition of Cavazos-DeLuna.

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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BEAUMONT, Texas– A Kountze man has pleaded guilty to robbing a bank in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Timothy Shane Mitchell, 38, pleaded guilty to bank robbery before District Judge Marcia Crone on Sep. 16, 2022.  

According to information presented in court, on June 6, 2022, Mitchell robbed the Lumberton branch of the Community Bank of Texas.  Mitchell approached a teller’s station at the bank and gave the teller a note demanding money.  Mitchell told the teller he had a gun, which he threatened to use if she alerted authorities.  The teller gave Mitchell a stack of currency and he left the bank.  The teller immediately activated the panic button alerting police to the robbery.  Witnesses were able to describe Mitchell’s vehicle, which was apprehended shortly after the robbery.  Mitchell was arrested and the $5,860 in currency was recovered at that time. 

Mitchell was indicted by a federal grand jury on June 8, 2022.  Mitchell faces up to 20 years in federal prison upon 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 Lumberton Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Joseph R. Batte.

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TEXARKANA, Texas – Four individuals, including two Red River Army Depot (RRAD) officials, have been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Jeffrey Harrison, 44, of Texarkana, a former RRAD vendor, pleaded guilty on May 18, 2021, to bribing Jimmy Scarbrough, a former RRAD official, and was sentenced to 30 months in federal prison today by U.S. District Judge Robert W. Schroeder, III.  Harrison was also ordered to forfeit $300,000.

Justin Bishop, 52, of Clarksville, a former RRAD vendor, pleaded guilty on May 18, 2021, to bribing Scarbrough and was sentenced to 12 months and 1 day in federal prison on Sep. 6, 2022, by Judge Schroeder.  Bishop was also ordered to forfeit $55,000.

Devin McEwin, 43, of Avery, a former RRAD official, pleaded guilty on May 27, 2021, to receiving bribes from Harrison and was sentenced to a five-year term of federal probation, including eight months of home confinement.  McEwin was also ordered to forfeit $21,000 and pay a fine of $5,000.

Louis Singleton, 64, of Texarkana, a former RRAD official, pleaded guilty on April 27, 2022, to receiving bribes from Harrison and others and was sentenced to five years of federal probation, including eight months of home confinement, and was ordered to forfeit $18,000.

“The Red River Army Depot is a key component of our nation’s defense infrastructure and is the lifeblood of the surrounding community,” said U.S. Attorney Brit Featherston.  “Scarbrough, Harrison, Bishop, McEwin, Singleton, and others exploited the public trust in order to line their own pockets and undermined the warfighting mission of the Depot in the process.”

“These sentences are a direct reflection of the tenacity and teamwork by MPFU special agents and our law enforcement partners,” said SA Scott Moreland, Special Agent-in-Charge of the Major Procurement Fraud Field Office (MPFFO), U.S. Army CID. “Bribery and other fraud schemes have no place in the government contracting system and those who attempt it will be caught.”    

“Today’s announcement highlights a successful collaboration among partner agencies as we collectively hold these defendants accountable for allegedly creating a fraudulent and deceptive scheme against the government and the people of the United States. We remain committed to the aggressive pursuit of those who selfishly leverage government programs for their own personal gain,” said Dallas FBI Special Agent in Charge, Matthew J. DeSarno.

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.

Jimmy Scarbrough, 69, of Hooks, pleaded guilty on August 22, 2022, to conspiring with Harrison, Bishop, and others to defraud the United States, commit theft of government property, and commit bribery.  At that time, Scarbrough agreed to forfeit his 1951 Ford F-1 pickup truck and amount of money to be determined by the court.  Scarbrough faces up to 5 years in federal prison and is awaiting sentencing. 

This was investigated by the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit; 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. Attorney Jonathan R. Hornok.

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SHERMAN, Texas – A Denton physician has pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Stanley Charles Evans, 63, pleaded guilty to conspiracy to distribute and dispense controlled substances and health care fraud today before U.S. Magistrate Judge Christine Nowak.

“Evans gives other physicians a bad name,” said U.S. Attorney Brit Featherston.  “Sworn to do no harm, Evans failed by illegally prescribing narcotics that harmed many people.  More people die by opioid drug abuse than by vehicle and gun related deaths combined in the U.S. today.  This is a big problem and those who are supposed to heal the sick, but choose to become illegal drug dealers, will be investigated and prosecuted.”

According to information presented in court, beginning in 2017, Evans, a licensed physician operating a family medicine practice in Denton, unlawfully prescribed approximately 370,000 dosage units of hydrocodone outside the usual course of professional practice and without a legitimate medical purpose.  An investigation began after it was reported that Evans was pre-signing opioid prescriptions for patients that were exhibiting drug seeking behavior.  Evans would pre-sign the scripts and the patients would be seen by his four nurse practitioners.  An investigation revealed patients were repeatedly able to obtain the strongest prescription for Hydrocodone from Evans and one of the nurses without ever being fully examined or providing any documentation regarding their “pain.”  It was also determined that Evans was only present at the office approximately half the time he claimed and that prescriptions for Schedule II opioids were being written for patients even while Evans was out of the country on vacation.  The investigation also revealed that nurses were seeing 20 to 30 patients a day and their salaries were production based, receiving a percentage of what they billed instead of a set salary.  Additionally, nurses were billing Medicare and TriCare under Evans’ medical identification number, which results in an increased charge to the government for physician services. In all,

Evans faces up to 20 years in federal prison.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case was investigated by the U.S. Drug Enforcement Administration Dallas Tactical Diversion Squad, Department of Defense Criminal Investigative Services, and Health and Human Services – Office of Inspector General.  This case is being prosecuted by Assistant U.S. Attorney Matthew T. Johnson.

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BEAUMONT, Texas –A Stratford, Missouri man has been sentenced for Racketeer Influenced and Corrupt Organizations violations stemming from his membership in the white supremacy prison gang, the Aryan Circle, announced U.S. Attorney Brit Featherston today.

Jesse Paul Blankenship, 39, also known as JP, was convicted at trial on Nov. 16, 2021, of racketeering conspiracy, kidnapping in aid of racketeering, and conspiracy to commit kidnapping in aid of racketeering.  He was sentenced to life in federal prison today by U.S. District Judge Thad Heartfield.

According to court documents and evidence presented at trial, Aryan Circle is a race-based, violent prison gang with hundreds of members operating throughout the country, both inside and outside of prisons.  The Aryan Circle enforces its rules and promotes discipline among its members, prospects, and associates through threats, intimidation, assaults, and murder.

Evidence presented at trial showed that between 2010 and 2021, Blankenship “put in work” by committing violence on behalf of the gang, including shooting at two victims inside their home and participating in a kidnapping and removal of another member’s patch, or gang tattoo, by burning it from the victim’s skin using a metal rod heated with a blowtorch. After committing these crimes, Blankenship moved up in rank in Aryan Circle and has since ordered additional acts of violence.

“This case exemplifies great collaboration between federal, state and local law enforcement to not only stop gang violence in prison, but also to protect innocent persons when that activity overflows into our communities, said Eastern District of Texas U.S. Attorney Brit Featherston.  “We will continue to investigate and prosecute those who advocate harm to others, and to specifically target the leaders of violent gangs.”

“Violent gangs pose a growing threat to our communities and the type of violence associated with these organizations has reach an intolerable level,” said ATF SAC Fred Milanowski.  “This case demonstrates that members of violent gangs that engage in heinous crimes will be held accountable.”

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 following agencies: Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Federal Bureau of Prisons; Texas Department of Public Safety; Houston Police Department-Gang Division; Montgomery County (TX) Precinct One Constable’s Office; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Indiana State Police; Fort Smith (AR) Police Department; Arkansas Department of Corrections; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County (MO) Police Department; Indiana Department of Corrections; Carrollton (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office; Tarrant County (TX) Sheriff’s Office; Evangeline Parish (LA) Sheriff’s Office; Smith County (TX) Sheriff’s Office; McCurtain County (OK) Sheriff’s Office; Montgomery County (TX) District Attorney’s Office; Liberty County (TX) District Attorney’s Office; Harris County (TX) District Attorney’s Office; Mercer County (NJ) Prosecutor’s Office; Evangeline Parish (LA) District Attorney’s Office; and the Sebastian County (AR) District Attorney’s Office. Valuable assistance was provided by the Organized Crime Drug Enforcement Task Forces.

Assistant U.S. Attorney Christopher Rapp of the Eastern District of Texas along with Trial Attorney Rebecca Dunnan of the Justice Department’s Organized Crime and Gang Section prosecuted this case.

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TEXARKANA, Texas – A Maud, Texas man has been sentenced for federal violations related to a COVID-relief fraud scheme in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.   

Samuel Morgan Yates, 35, pleaded guilty on May 6, 2022, to wire fraud and was sentenced to 68 months in federal prison today by U.S. District Judge Robert W. Schroeder, III.  Yates was also ordered to pay $1,066,432 in monetary penalties for restitution and forfeiture.

According to court documents, Yates made two fraudulent applications to two different lenders for loans guaranteed by the SBA for COVID-19 relief through the Paycheck Protection Program (PPP).  In the application submitted to the first lender, Yates sought $5 million in PPP loan proceeds by fraudulently claiming to have over 400 employees with an average monthly payroll of more than $2 million.  In the second application, Yates claimed to employ over 100 individuals and was able to obtain a loan of over $500,000. With each application, Yates submitted a list of purported employees that he obtained from a publicly available random name generator on the internet. He also submitted forged tax documents with each application.

“Protecting taxpayer dollars remains one of our highest priorities,” said U.S. Attorney Brit Featherston.  “Government programs are designed to assist our citizens in their time of need and are done by following established protocols to ensure the money is properly disbursed and accounted for.  Yates chose to steal from those most in need of assistance and is now being punished for his actions.  Congratulations to the investigative and prosecution team for this outcome.”

The CARES Act is a federal law enacted on March 29, 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 of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.  In April 2020, Congress authorized over $300 billion in additional PPP funding.

The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent.  PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities.  The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within eight weeks of receipt and use at least 75 percent of the forgiven amount for payroll. 

This case was investigated by the SBA Office of Inspector General, and U.S. Postal Inspection Service.  Trial Attorney Louis Manzo of the Criminal Division’s Fraud Section and Criminal Chief Frank Coan and Assistant U.S. Attorney Jonathan R. Hornok for the Eastern District of Texas prosecuted the case.

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MARSHALL, Texas – A Harleton, Texas woman has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Kerri Marie Thorn, 31, pleaded guilty on May 10, 2022, to possession with intent to distribute fentanyl and was sentenced to 54 months in federal prison today by U.S. District Judge Rodney Gilstrap.

According to information presented in court, Thorn was arrested in August 2021 following a report that she was in possession of more than 2.5 kilograms of stolen fentanyl that she had hidden near a residence in Harleton.  Law enforcement officers recovered what was analyzed as 2,607.6 grams of fentanyl and interviewed Thorn, who admitted that she and her co-defendant intended to transport the fentanyl out of the state for sale, at which time they would split the profits.  Thorn was indicted by a federal grand jury on Feb. 17, 2022.

This case was investigated by the Federal Bureau of Investigation, Marshall Police Department, and Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Lucas Machicek.

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