Eastern District of Texas
Press releases recorded for this federal judicial district.
Colombian Attorney Convicted of Obstruction of Justice in East Texas Federal CourtRead the Press Release
PLANO, Texas – A Colombian lawyer has been convicted of federal obstruction violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Maritza Claudia Fernanda Lorza Ramirez, 48, was convicted of obstruction of justice and aiding and abetting following a week-long trial before 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 $3,000,000 USD by the large-scale Colombian drug traffickers.
Ramirez was indicted by a federal grand jury on May 10, 2018. She 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.
“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 Claudia’s actions pervert the rule of law and the peace process in Colombia, but they also hindered ongoing investigations, facilitating the flow of illegal drugs into the U.S. by protecting dangerous drug traffickers. 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 with assistance from the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) Judicial Attachés in Bogotá. The Justice Department’s Office of International Affairs (OIA) provided substantial assistance in securing Lorza Ramirez’s arrest and extradition from Colombia. 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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Collin County Man Sentenced in Oil & Gas Investment Fraud SchemeRead the Press Release
PLANO, Texas – A Melissa man has been sentenced to prison in the Eastern District of Texas for federal violations, announced U.S. Attorney Brit Featherston today.
Matthew Wayne Fox, 47, pleaded guilty on March 9, 2020 to wire fraud and was sentenced to 33 months in federal prison today by U.S. District Judge Sean D. Jordan. Fox was also ordered to pay restitution in the amount of $862,150.
According to information presented in court, beginning in 2015, Fox formed Wayne Energy, a company that was to specialize in the oil and gas exploration fields. Fox previously was the CEO of a business named Frisco Exploration, that went out of business. From March 2015 through October 2016, Fox raised approximately $949,650 from investors to form a joint venture to convert an oil well to a natural gas well in Upshur County, Texas. Fox solicited the funds through various literature and emails sent to potential investors.
The emails Fox sent contained several misrepresentations about the joint venture such as ownership of the well, the cost of converting the well, the production of a similar well, and actual work done on site. Further misrepresentations included that Wayne Energy was a licensed operator with the State of Texas Railroad Commission. Following the initial investment Fox continued to send emails with misrepresentations about work done on the site in order to solicit more money. An investigation by the SEC showed the majority of money raised by investors was used for the Fox family personal use.
The SEC launched an investigation into Fox following complaints about the investments in the natural gas well. The SEC obtained a judgment in 2018 against Fox for his conduct in soliciting investors. The SEC referred the case to the Federal Bureau of Investigations, who launched a criminal investigation resulting in the indictment.
This case was investigated by the Federal Bureau of Investigation and the Securities Exchange Commission and prosecuted by Assistant U.S. Attorney William R. Tatum.
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Gunman Sentenced to 20 Years for Shooting Port Arthur Man During CarjackingRead the Press Release
BEAUMONT, Texas – A Port Arthur man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Charles Robert Knatt, 20, pleaded guilty on August 11, 2021, to carjacking and use of a firearm during a crime of violence and was sentenced to 240 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to court documents, on March 15, 2021, law enforcement officers responded to a carjacking and shooting in Port Arthur where they found a man shot in the arm at his residence. The victim told officers that as he walked out of his house to go to work, he was approached by an unknown male - later identified as Charles Knatt - who was armed with a gun. Knatt forced the victim to his knees and pointed a pistol at the victim’s head demanding money and the keys to his truck. When the victim gave Knatt his keys and wallet, Knatt got in the victim’s truck and backed out of the driveway. The victim attempted to run inside his house, however his front door was locked and he could not get in due to Knatt stealing his keys. The victim began to franticly ring his doorbell and beat on the door in order to wake his wife and get inside the house, at which point Knatt exited the truck and fired several shots at the victim, striking him one time in the arm. Security cameras at the victim’s home captured the carjacking and shooting on video. Three days later, Knatt turned himself in to police after seeing news reports about the carjacking and shooting. Knatt admitted to law enforcement that he stole the victim’s truck and shot him. Knatt was indicted by a federal grand jury on May 6, 2021.
“Make no mistake about it, there are predators out there like this guy,” said U.S. Attorney Brit Featherston. “The Port Arthur Police and ATF have joined forces to stop violent offenders and we will pursue each one until they are in jail.”
“Working with our local, state, and federal partners is the most effective way to combat violent crime,” said ATF Special Agent in Charge Fred Milanowski. “This case sends a very clear message to those using firearms in crime and creating a threat to the public that law enforcement will work together at every level to keep the public safe.”
“I would like to thank United States Attorney Brit Featherston and his staff, Beaumont ATF, the dedicated women and men of the Port Arthur Police Department and citizens of Port Arthur for collectively bring this case to a successful conclusion,” said Port Arthur Police Chief Tim Duriso. “Hopefully, the conclusion of this senseless and violent crime gives the victim and his family closure, and assures the public, law enforcement is working diligently to ensure their safety.”
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 Port Arthur Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Matthew Quinn.
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New Yorker Sentenced in East Texas for National Fraud ConspiracyRead the Press Release
SHERMAN, Texas – A Queens, New York man has been sentenced to prison in the Eastern District of Texas for federal violations, announced U.S. Attorney Brit Featherston today.
Anthony Terrell Lloyde, 33, pleaded guilty on July 29, 2021 to conspiracy to commit bank fraud and was sentenced to 121 months in federal prison today by U.S. District Judge Amos L. Mazzant. Lloyde was also ordered to pay restitution in the amount of $1,339,025.37.
According to information presented in court, beginning in January 2013, Lloyde conspired with others in a scheme to use the stolen identities of unsuspecting victims to illegally purchase material goods and services, most often high-value electronics, such as iPhones and iPads, hotel rooms and vehicle rentals. Though based in New York, participants traveled throughout the United States to cities associated with the victims’ identities to avoid detection of the fraud. Lloyde was the organizer and leader of the scheme. He purchased victims’ identifying information via the internet and directed the use of device-making equipment to manufacture fraudulent state identification documents and credit cards. He recruited conspirators, to whom he provided the fraudulent documents, and directed them to travel to various cities throughout the United States, including cities located in the Eastern District of Texas such as Frisco and Plano. Once they arrived at their target location, they used the victims’ stolen identification information and forged identification documents to open fraudulent instant credit accounts at retail stores, such as Apple Store and Best Buy, to purchase merchandise. These stores utilize the credit services of federally insured banks such as Citibank, Barclays Bank Delaware and Synchrony. Thus, by materially misrepresenting their identities to the retail stores, Lloyde and his coconspirators were able to defraud the banks.
Lloyde typically organized the trips by determining the target cities and stores and by booking and/or purchasing airline tickets on behalf of his coconspirators. Lloyde and coconspirators typically traveled under their true identities and would often mail the fraudulent identification documents and credit cards to one another in order to avoid traveling with them in their possession. Conspirators used fraudulently obtained credit cards and forged identification documents to rent vehicles to travel during their commission of the offense, and those fraudulently obtained vehicles were often sold to third parties on the black market. As such, the offense involved an organized plan to steal or receive stolen vehicles. Once conspirators arrived at the target stores, Lloyde and others would actively participate via phone calls and text messages, directing which victims’ identities were to be used and which products were to be purchased. Victims’ identities were often chosen based upon their proximity to the target city and store, making it less likely the fraud would be detected since it was occurring close to where the victims lived. Some conspirators used victims’ identification and phone numbers to obtain duplicate cell phone subscriber identity modules (SIM cards). Those conspirators would then use the duplicate SIM cards to divert fraud alerts to their own cell phones, which allowed the conspirators to further their criminal conduct by authorizing the fraudulent transactions. After purchasing items, conspirators shipped the illegally obtained goods to Lloyde in New York, and Lloyde would resell those products. Lloyde parlayed some of the proceeds generated by the criminal enterprise to purchase airline tickets for himself and other conspirators, to pay for hotel accommodations for himself and other conspirators, and to provide money for incidental expenses assumed by conspirators. In all, the scheme targeted retail stores that provided instant lines of credit the conspirators could exploit to immediately purchase goods. The credit accounts were funded by banks, and those banks, rather than the retail stores, suffered the financial losses. The primary pecuniary victims of the offense include Citibank, Barclays Bank Delaware, Nordstrom, and Synchrony. Citibank suffered an actual loss of $1,045,406.71. Barclays Bank Delaware reported an actual loss of $154,731.91. Nordstrom reported an actual loss of $71,016.01. Synchrony reported an actual loss of $67,870.74. As such, the total actual known loss committed by Lloyde and his coconspirators is $1,339,025.37.
This case was investigated by the Department of Homeland Security HSI Dallas, along with HSI Long Island, HSI Atlanta and HSI Salt Lake City field offices; Dallas-Ft. Worth International Airport Department of Public Safety; Plano, Texas Police Department; Port of Portland Police Department; New York State Police; New York Police Department; Massachusetts State Police; Cincinnati-Northern Kentucky Airport Police Department; Orange County, Texas, Sheriff's Office; Aurora, Colorado Police Department; Broomfield, Colorado, Police Department. This case was prosecuted by Assistant U.S. Attorney Matthew Johnson.
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Dallas Man Sentenced to Federal Prison for Sex Trafficking ChildrenRead the Press Release
PLANO, Texas – A Dallas man has been sentenced to 20 years in federal prison for sex trafficking of children in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Laderrick Dedemon Smith, also known as “Freeway,” 22, pleaded guilty on August 24, 2021, to sex trafficking of children and was sentenced to 240 months in federal prison by U.S. District Judge Sean D. Jordan on May 26, 2022.
According to information presented in court, in April 2020, HSI and the Arlington Police Department, with the assistance of the Tarrant County Sheriff's Office, rescued a minor victim who had been sex trafficked by Smith, including during the COVID pandemic lockdown. Through investigation, officers learned that Smith had trafficked the minor victim, and others, out of a hotel room in Plano, within the Eastern District of Texas. Smith placed ads on sites with photographs of the minor victims and offered them for sex. Smith communicated with prospective buyers, set rates, and arranged for the commercial sex acts. Smith also installed a tracking device on the minor victim's cell phone so that the minor could not leave the hotel, obtain food, or seek medical treatment without his knowledge. In sentencing Smith, the district court found that Smith kept the minor victim in his custody, care, and supervisory control, and that Smith unduly influenced the minor victim to engage in commercial sex through fear of bodily injury. The Court ultimately sentenced Smith to a total term of imprisonment of 20 years, to be followed by a term of supervised release of 15 years, during which time Smith will be required to register as a sex offender.
“Protecting children from predators like Smith is one of our top priorities,” said U.S. Attorney Brit Featherston. “I’m proud of the work our partners at the North Texas Trafficking Task Force do hunting for those who prey on children. He who harms a child will suffer the wrath of law enforcement and will be arrested and prosecuted to the fullest extent of the law.”
“Child sex trafficking is one of the most deviant crimes we investigate in our agency,” said acting Special Agent in Charge Christopher Miller, HSI Dallas. “The work of our law enforcement partners of the North Trafficking Task Force has proven to be invaluable in removing these dangerous predators from our communities, while at the same time providing much needed assistance to those victimized by their perpetrators.”
This case was investigated by Homeland Security Investigations-led North Texas Trafficking Task Force and the Arlington Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
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Justice Department Files False Claims Act Complaint Against Six Physicians in Texas Relating to Alleged Kickbacks and Improper Laboratory Testing ClaimsRead the Press Release
The Justice Department amended its complaint in a laboratory testing fraud case to add six physicians in Texas. The case alleges False Claims Act violations based on patient referrals in violation of the Anti-Kickback Statute and the Stark Law. The amended complaint further alleges that the six physicians caused claims to be improperly billed to federal health care programs for medically unnecessary laboratory testing.
According to the United States’ complaint, the six physician defendants received thousands of dollars in kickbacks in return for their referrals of laboratory testing. The complaint alleges that laboratories True Health Diagnostics LLC (THD) and Boston Heart Diagnostics Corporation (BHD) conspired with small Texas hospitals, including Rockdale Hospital dba Little River Healthcare (LRH), to pay physicians to induce referrals to the hospitals for laboratory testing, which was then performed by THD or BHD. As alleged in the complaint, the hospitals paid a portion of their laboratory profits to recruiters, who in turn kicked back those funds to the referring physicians. The recruiters allegedly set up companies known as management service organizations (MSOs) to make payments to referring physicians that were disguised as investment returns but were actually based on, and offered in exchange for, the physicians’ referrals. The complaint alleges that laboratory tests resulting from this referral scheme were billed to various federal health care programs, and that the claims not only were tainted by improper inducements but, in many cases, also involved tests that were not reasonable and necessary.
“The Department of Justice is committed to holding accountable health care providers, including physicians, who commit fraud,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Improper financial arrangements involving physicians and laboratories can distort physicians’ medical judgments, waste taxpayer dollars and subject patients to unnecessary testing or other services.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally-funded programs. The Stark Law forbids a hospital or laboratory from billing Medicare for certain services referred by physicians that have a financial relationship with the hospital or laboratory. The Anti-Kickback Statute and the Stark Law seek to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The United States’ amended complaint alleges that, in addition to the previously named defendants, the following six physicians received kickbacks from MSOs in return for their laboratory testing referrals:
- Doyce Cartrett, Jr., M.D., of Silsbee, Texas, allegedly received over $320,000 from LRH and two MSOs, Ascend MSO of TX LLC (Ascend) and Eridanus MG LLC (Eridanus), in return for his referrals.
- Elizabeth Seymour, M.D., of Corinth, Texas, allegedly received over $280,000 from two MSOs, Ascend and Eridanus, in return for her referrals.
- Emanuel Paul “E.P.” Descant, II, M.D., of Spring, Texas, allegedly received over $125,000 from two MSOs, North Houston MSO and Tomball Medical Management Inc., in return for his referrals.
- Frederick Brown, M.D., of Missouri City, Texas, allegedly received over $190,000 from two MSOs, Ascend and Indus MG LLC (Indus), in return for his referrals.
- Heriberto Salinas, M.D., of Cleburne, Texas, allegedly received over $75,000 from two MSOs, Ascend and Herculis MG LLC (Herculis), in return for his referrals.
- Hong Davis, M.D., of Lewisville, Texas, allegedly received over $70,000 from two MSOs, Ascend and Herculis, in return for her referrals.
“Schemes that funnel health care referrals do not work without the participation of physicians,” said U.S. Attorney Brit Featherston for the Eastern District of Texas. “They are not merely passive players in these elaborate schemes, but an integral part, without which the scheme could not exist. Our office is committed to rooting out health care fraud by pursuing all players involved the scheme, from the laboratories and their leaders to the marketers and the physicians who make it all possible. Naming these physicians in the complaint is evidence of that commitment.”
“Patients deserve reasonable and necessary care from providers without improper motivations,” said Special Agent in Charge Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Collaborating with our law enforcement partners, we will continue to investigate and hold accountable physicians accepting payments for referrals.”
“The Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DCIS) is committed to rooting out fraud schemes that waste taxpayer resources and impact mission readiness,” said Acting Special Agent in Charge Gregory P. Shilling of the DCIS Southwest Field Office. “DCIS will continue to work with our partners to hold those accountable who undermine the integrity of the health care system that supports our nation’s service members, retirees and their families.”
The United States’ amended complaint was filed in connection with a lawsuit originally filed under the qui tam or whistleblower provisions of the False Claims Act by STF LLC, whose members are Felice Gersh, M.D. and Chris Riedel. The United States intervened in the qui tam action in December 2021 and filed a complaint under the False Claims Act in January 2022 against former THD CEO Christopher Grottenthaler, former BHD CEO Susan Hertzberg, former LRH CEO Jeffrey Madison, and others. Under the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the recovery. The Act permits the United States to intervene in such lawsuits and add claims and defendants, as it has done here. The qui tam case is captioned United States, et al. ex rel. STF, LLC v. True Health Diagnostics, LLC, et al., No. 4:16-cv-547 (E.D. Tex.). If a defendant is found liable for violating the act, the United States may recover three times the amount of its losses plus applicable penalties.
This case is being handled by attorneys Christopher Terranova and Gavin Thole in the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorneys James Gillingham, Adrian Garcia and Betty Young in the U.S. Attorney’s Office for the Eastern District of Texas. Investigative support is being provided by HHS-OIG and DCIS. As a result of its efforts, the United States has already recovered more than $31 million relating to conduct involving BHD, THD and LRH, including False Claims Act settlements with 29 physicians, two health care executives and a laboratory company.
The United States’ pursuit of this lawsuit illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
The claims in the complaint are allegations only, and there has been no determination of liability.
Military Contractor Indicted for $15 Million Bid-Rigging Scheme and Conspiracy to Defraud the United StatesRead the Press Release
A federal grand jury in the Eastern District of Texas returned an indictment charging a military contractor for rigging bids on public military contracts in Texas and Michigan and defrauding the United States.
According to the indictment, from at least as early as May 2013 through at least April 2018, Aaron Stephens, 52, formed agreements with multiple co-conspirators to rig bids on certain government contracts in order to give the false impression of competition and secure government payments, and to defraud the United States. As a part of two different schemes, Stephens and his co-conspirators allegedly rigged eight military contracts and received more than $15 million from the government for those contracts. The contracts included work performed for the Red River Army Depot in Texarkana, Texas; the U.S. Army Contracting Command in Warren, Michigan; and the Sierra Army Depot in Herlong, California.
“U.S. taxpayers deserve to know that the government contracting process is not subverted through collusion,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Bid rigging undermines the competitive process, wastes taxpayer dollars and deprives businesses that follow the rules of fair competition. Investigating and prosecuting this case and others involving government contracting is a top priority for the Department of Justice and all members of the Procurement Collusion Strike Force.”
“Protecting U.S. tax dollars and the government contracting process is very important,” said U.S. Attorney Brit Featherston for the Eastern District of Texas. “The government provides significant economic opportunities for businesses, and the bidding process must be fair for qualified applicants. Any action taken to thwart this fair process will be investigated and prosecuted.”
“This indictment reflects the unrelenting approach and tenacity we employ daily in pursuing individuals who dare to attempt to defraud the federal government and the U.S. Army,” said Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division's Major Procurement Fraud Field Office. “When it comes to government contracting and purchasing, the superbly skilled and highly-trained special agents in our fraud unit use their finely honed investigation skills to combat and uncover fraud, deception, bribery and other criminal acts.”
“Bid rigging subverts the government contracting process and defrauds the American taxpayer,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI and our law enforcement partners are committed to investigating those who conspire to undermine the principles of fair and free competition.”
Stephens was charged in the U.S. District Court for the Eastern District of Texas with one count of bid rigging in violation of the Sherman Act and two counts of conspiracy to defraud the United States.
The maximum penalty for conspiracy to restrain trade under the Sherman Act is 10 years in prison and a criminal fine of $ 1 million. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine. The maximum penalty for conspiracy to defraud the United States is five years in prison and a fine of twice the amount of the gain or loss associated with the offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other relevant factors.
The Antitrust Division’s Washington Criminal II Section is prosecuting the case, which was investigated with the assistance of the U.S. Attorney’s Office for the Eastern District of Texas, the U.S. Army Criminal Investigation Division’s Dallas Fraud Resident Agency, and the FBI’s Dallas Field Office.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending, go to https://www.justice.gov/procurement-collusion-strike-force.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Texarkana, Texas Men Arrested on Federal Drug Trafficking and Firearms ViolationsRead the Press Release
TEXARKANA, Texas – Four Texarkana, Texas men have been arrested on drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Deablo Deshon Lewis, a/k/a Pablo Lew, 31; Michael Darnell Peacock, a/k/a Fruit, 37; Terrance Lamar Peacock, a/k/a T, 31; and Justin Marshall Owens, 40, were named in an indictment returned by a federal grand jury on March 10, 2022, charging them with federal drug trafficking and firearms violations. Michael Peacock appeared before U.S. Magistrate Judge Caroline Craven Craven on March 17, 2022; Lewis appeared before U.S. Magistrate Judge Barry Bryant on March 23, 2022; Owens appeared before Judge Craven on March 31, 2022; and Terrance Peacock appeared before Judge Craven on May 17, 2022.
According to the indictment, beginning in November 2018 and continuing through March 2022, Lewis, Michael Peacock, Terrance Peacock, and Owens allegedly conspired with each other and others to distribute fentanyl, methamphetamine, U-47700, and marijuana in the Texarkana area. During that time, they allegedly carried, used, and possessed firearms in connection with their drug trafficking activities. As a result of the drugs these defendants distributed, three individuals died and another sustained serious bodily injury. In total, the defendants are allegedly responsible for distributing $5 million worth of drugs.
“The counterfeit oxycodone pills--sometimes known as ‘blues’ or ‘M30s’--that were distributed in the Texarkana area contain deadly fentanyl,” said U.S. Attorney Brit Featherston. “If you, or someone you know, has experienced an opioid overdose as a result of taking one of these round blue pills--stamped with ‘M’ on one side and ‘30’ on the other--please contact the Texarkana Texas Police Department at 903-798-3116. Increasingly, we are seeing more street drugs with deadly fentanyl added to them…and it is killing the users. More people need to be aware of this increasing trend that can kill the recreational drug user. Simply put, one pill can kill!”
If convicted, the defendants face from 25 years to life in federal prison.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is being investigated by the Texarkana, Texas, Police Department; Texas Department of Public Safety; the U.S. Drug Enforcement Administration; the U.S. Postal Inspection Service; and the Texarkana, Arkansas, Police Department. This case is being prosecuted by Assistant U.S. Attorneys Jonathan R. Hornok and D. Ryan Locker.
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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Former Gulf Cartel Leader Extradited to East Texas for Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – A Mexican national has been extradited to the United States to face drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Mario Cardenas-Guillen, 57, of Matamoros, Mexico, was indicted by a federal grand jury on June 20, 2012, and charged with conspiracy with intent to distribute five kilograms or more of cocaine. Cardenas-Guillen was surrendered to the United States on May 17, 2022. He will make an initial appearance on May 23, 2022, before U.S. Magistrate Judge Zack Hawthorn.
According to the indictment, beginning in 2000 and continuing through 2012, Cardenas-Guillen is alleged to have conspired with others to possess more than five kilograms of cocaine, which he intended to distribute to others.
“International sources of illegal drugs continue to poison our communities,” said U.S. Attorney Brit Featherston. “We will make every effort to combat this scourge, and that includes going to the origin of the drugs in foreign countries and arresting and prosecuting those who seek to make a profit off this blight that adversely affects so many in our society.”
“For decades, the Gulf Cartel has used intimidation and extreme violence to maintain control of its territories in northeast Mexico and smuggle deadly drugs into communities across the United States,” said DEA Administrator Anne Milgram. “The extradition of Mario Cardenas Guillen, the former leader of the Gulf Cartel, should send a clear message to the leaders of drug trafficking organizations around the world that no one is beyond the reach of the DEA and our law enforcement partners.”
If convicted, Cardenas-Guillen faces from 10 years to life in federal prison.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is being investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Christopher Rapp.
The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Cardenas-Guillen to the United States. Special thanks to the Government of Mexico for their help in the capture and extradition of Cardenas-Guillen.
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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Port Arthur Felon Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Port Arthur man has been sentenced to 10 years in federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Jesus Antonio Ceja, 30, pleaded guilty on August 2, 2021, to being a felon in possession of a firearm and was sentenced to 120 months in federal prison by U.S. District Judge Marcia A. Crone on May 17, 2022.
According to court documents, on Feb. 9, 2020, law enforcement officers observed a vehicle stopped at an intersection in 5200 block of 15th Street in Port Arthur. As the officer approached the vehicle, he saw the driver, later identified as Ceja, with his head down. The officer drove towards the vehicle to see if the driver was in need of assistance, at which time Ceja looked at the officer and accelerated away at a high rate of speed. As the officer turned around to follow the vehicle, he saw that Ceja had crashed his vehicle into a pole at the nearby intersection of Lewis and Lakeview streets. Ceja repeatedly reached under the seat and ignored commands to show his hands and exit the vehicle. After the officer opened the passenger door, Ceja exited the vehicle and crawled on top of it, refusing to come down. Once other officers arrived, Ceja came down off the car and told officers there was methamphetamine and a firearm in the car. Further investigation revealed Ceja was a convicted felon having previously been found guilty of felony escape in Jefferson County in 2008. As a convicted felon, Ceja is prohibited from owning or possessing firearms or ammunition. Ceja was indicted by a federal grand jury on April 27, 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 Port Arthur Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Matthew Quinn.
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18 Arrested, Charged in East Texas Paycheck Protection Program-Related FraudRead the Press Release
PLANO, Texas – Nineteen individuals have been named in a federal indictment charging them with violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
The indictment, returned by a federal grand jury on May 12, 2022, charges the defendants with conspiracy to commit wire fraud. The following 18 defendants have either been arrested or summoned for appearance before a federal magistrate judge:
Michael Lewayne Hill, a/k/a Tank, 47, of Mineral Wells;
Andrew Charles Moran, 43, of Lewisville;
Peter Keovongphet, a/k/a Lil’ Pete, 34, of Ft. Lauderdale, FL;
Ty Alan Burkhart, 34, of Frisco;
Jason Lawrence Geiger, a/k/a Austin St. John a/k/a the Red Power Ranger, 47, of McKinney;
Eric Reed Marascio, a/k/a Phoenix Marcon, 50, of Allen;
Christopher Lee McElfresh, 43, of Frisco;
Cord Dean Newman, 44, of Homosassa, FL;
Elmer Omar Ayala, 45, of Midlothian;
Gregory Fitzgerald Hatley, Jr., 38, of Allen;
Alexander Eric Cortesano, 52, of Dallas;
Arthur Atik Pongtaratik, 33, of Carrollton;
Miles Justin Urias, 34, of Richardson;
Fabian C. Hernandez, 44, of Lake Alfred, FL;
Daniel Lee Warren, 33, address unknown;
Rajaa Bensellam, 49, of Allen;
Hadi Mohammed Taffal, 50, of Allen; and
Jonathon James Spencer, a/k/a Spence, 33, of Rowlett.
According to the indictment, the defendants, led by Michael Hill and Andrew Moran, are alleged to have executed a scheme to defraud lenders and the Small Business Administration’s (SBA's) Paycheck Protection Program (PPP). Hill is alleged to have recruited co-conspirators to use an existing business or create a business to submit applications to obtain PPP funding. Once enlisted, Moran is alleged to have assisted his co-conspirators with the application paperwork, including fabricating supporting documentation and submitting the application through the online portals. On the applications, the defendants are alleged to have misrepresented material information such as the true nature of their business, the number of employees, and the amount of payroll. Based on these material misrepresentations, the SBA and other financial institutions approved and issued loans to the defendants. Once in receipt of the fraudulently obtained funds, the defendants did not use the money as intended, such as to pay employee salaries, cover fixed debt or utility payments, or continue health care benefits for employees. Instead, the defendants typically paid Hill and Moran, transferred money to their personal accounts, and spent the funds on various personal purchases. In other instances, the defendants sent the fraudulently obtained funds to Jonathon Spencer for purported investment in foreign exchange markets. In total, the defendants are alleged to have fraudulently obtained at least 16 loans and at least $3.5 million.
If convicted, the defendants each face up to 20 years in federal prison.
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 is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations. This case is being prosecuted by Assistant U.S. Attorneys in the Eastern District of Texas.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Purple Pistol Bandit Sentenced to 20 years for Beaumont-area Armed Robbery SpreeRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Derrick Rashard Gloude, 24, pleaded guilty on Sep. 23, 2021, to Hobbs Act robbery and brandishing a firearm during a crime of violence and was sentenced to a total of 240 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to court documents, from November 9, 2020 through November 16, 2020, Gloude robbed six businesses and attempted to rob another in Beaumont. The stores were all engaged in interstate commerce and employed clerks who were engaged in the commercial activities of the stores at the time of the robberies. The Hobbs Act prohibits actual or attempted robbery affecting interstate commerce. In each of the robberies, Gloude brandished a purple pistol and pointed it at the clerks when demanding money.
After receiving a CrimeStoppers tip, investigators were able to develop Gloude as a suspect. A review of Gloude’s public Facebook page showed photos of Gloude wearing clothes matching the clothing reported by the clerks in each store. Additionally, Gloude’s Facebook showed pictures of him brandishing a purple handgun and flashing fans of cash. The pistol was recovered after Gloude’s arrest and determined to have been reported stolen in Beaumont.
“If you carry or use a gun and commit a felony crime, we will seek the highest punishment we can on you,” said U.S. Attorney Brit Featherston. “Violent crime, especially those crimes where a firearm is used, is at the top of our priority list. We, and our state, local and federal law enforcement partners will work tirelessly together to protect our community by arresting and prosecuting violent offenders.”
“This is just another great example of how we can be more effective in law enforcement when we work together,” said Beaumont Police Chief Jimmy Singletary. “Our relationships with our federal partners are so valuable in larger investigations like this to put our criminals away for an extended length of time. We certainly cherish these relationships.”
“Removing the criminal element that illegally uses firearms to commit violent crime is a top priority of the ATF,” Special Agent in Charge Fred Milanowski said. “The ATF will continue to work with our law enforcement partners and the communities we serve to remove the criminal elements that negatively impact our communities.”
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 is being investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Matt Quinn.
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California Man Indicted in Texas for Sending Threatening Messages to University PresidentRead the Press Release
SHERMAN, Texas – A federal grand jury has returned an indictment charging a Rossmoor, California, man with federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Jeremy David Hanson, 44, was named in the indictment returned by a federal grand jury on May 11, 2022 in Sherman charging him with interstate transmission of threatening communications.
According to the indictment, on March 3, 2022, Hanson is alleged to have sent a threatening email to the President of the University of North Texas (UNT) in response to an event that happened the day before. The indictment states that student protests occurred on the UNT campus following the speaking engagement of a political candidate who supported outlawing sexual reassignment surgeries for children.
“Jeremy Hanson is accused of sending numerous death threats and hate-filled messages related to the LGBTQ community, which the FBI acted swiftly to disrupt,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “These abhorrent threats were intended to incite fear and intimidation and have no place in our society. The FBI will continue to protect the American people from threats of violence and find justice for victims.”
If convicted, Hanson faces up to five years in federal prison.
This case is being investigated by the Federal Bureau of Investigation’s Dallas Field Office and is being prosecuted by Assistant U.S. Attorney Tracey Batson.
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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U.s. Attorney Featherston Recognizes Police WeekRead the Press Release
BEAUMONT, Texas — In honor of National Police Week, United States Attorney Brit Featherston will recognize the service and sacrifice of federal, state, local, law enforcement. This year, the week is observed Wednesday, May 11 through Tuesday, May 17, 2022.
“This week, we gather to pay tribute to the law enforcement officers who sacrificed their lives in service to our country,” said Attorney General Garland. “We remember the courage with which they worked and lived. And we recommit ourselves to the mission to which they dedicated their lives. On behalf of a grateful Justice Department and a grateful nation, I extend my sincerest thanks and gratitude to the entire law enforcement community.”
“Without the rule of law, the pillars of Constitution will not stand. At its most basic human level, the officer on the street is and must be the protector of the people, the one we turn to when danger or wrongs occur,” said U.S. Attorney Brit Featherston. “Encounters on the street with a police officer is often where the justice system is initiated and where our citizens (victim or accused) begin their journey to protect their life or property from harm. Today, honoring those in blue who have made the ultimate sacrifice, we are also honoring what they stood for. They stood for, at its most basic level, that to live in a free country under our Constitution, that society only remains free when the rule of law is enforced. Those brave men and women, at its core, selflessly died while giving aid to their fellow citizens and their communities. Their lives and memory give us confidence that our free way of life will continue, and their sacrifice will forever not be in vain.”
In 1962, President Kennedy issued the first proclamation for Peace Officers Memorial Day and National Police Week to remember and honor law enforcement officers for their service and sacrifices. Peace Officers Memorial Day, which every year falls on May 15, specifically honors law enforcement officers killed or disabled in the line of duty. Based on data submitted to and analyzed by the National Law Enforcement Officer Memorial Fund (NLEOMF), 472 law enforcement officers died nationwide in the line of duty in 2021. Of that number, 319 succumbed to COVID-19. Four officers have died in the line of duty in the Eastern District of Texas.
Additionally, according to 2021 statistics reported by the Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program, 73 law enforcement officers who died in the line of duty in 2021 were killed as a result of felonious acts, whereas 56 died in accidents. Deaths resulting from felonious acts increased in 2021, rising more than 58 percent from the previous year. In 2021, unprovoked attacks[1] were the cause of 24 deaths significantly outpacing all other line of duty deaths resulting from felony acts and reaching the highest annual total in over 30 years of reporting. Additional LEOKA statistics can be found on FBI’s Crime Data Explorer website for the LEOKA program.
The names of the 619 fallen officers added this year to the wall at the National Law Enforcement Officer Memorial will be read on Friday, May 13, 2022, during a Candlelight Vigil in Washington, D.C., starting at 8:00 PM EDT. Those who wish to view the vigil live online, can watch on the NLEOMF YouTube channel found at https://www.youtube.com/TheNLEOMF. The schedule of National Police Week events is available on NLEOMF’s website.
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Reference to any specific organization or service(s) offered by an organization is for the information and convenience of the public, and does not constitute endorsement, recommendation, or favoring by the United States Department of Justice.
[1] An unprovoked attack is defined as an attack on an officer not prompted by official contact at the time of the incident between the officer and the offender. Source: Federal Bureau of Investigation (FBI) through the Law Enforcement Officer Killed and Assaulted (LEOKA) Program.
U.S. Marshals, FBI Urge Public to Report Phone ScamsRead the Press Release
TYLER – The U.S. Marshals and the FBI are alerting the public of several nationwide imposter scams involving individuals claiming to be U.S. marshals, court officers, or other law enforcement officials. They are urging people to report the calls their Local FBI office and file a consumer complaint with the Federal Trade Commission, which has the ability to detect patterns of fraud from the information collected and share that data with law enforcement. During the latest series of calls, scammers identifying themselves as “Deputy John Garrison” (the name of the actual U.S. Marshal in the Eastern District of Texas) attempt to collect a fine in lieu of arrest due to a claim of identity theft, failing to report for jury duty, or other offenses. They then tell victims they can avoid arrest by withdrawing cash and transferring it to the government, purchasing a prepaid debit card such as a Green Dot card or gift card and read the card number over the phone to satisfy the fine, or by depositing cash into bitcoin ATMs. Scammers use many tactics to sound and appear credible. In many instances, scammers provide information like badge numbers, names of actual law enforcement officials and federal judges, along with courthouse addresses. They may also spoof their phone numbers to appear on caller IDs as if they are calling from a government agency or the court when they actually are not. If you believe you were a victim of such a scam, you are encouraged to report the incident to your local FBI office and to the FTC. Additionally, The Department of Justice launched the National Elder Fraud Hotline, which provides services to seniors who may be victims of financial fraud. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. The hotline’s toll-free number is 833-FRAUD-11 (833-372-8311). Things to remember:
• U.S. MARSHALS WILL NEVER ask for credit/debit card/gift card numbers, wire transfers, or bank routing numbers, or to make bitcoin deposits for any purpose.
• NEVER divulge personal or financial information to unknown callers.
• Report scam phone calls to your local FBI office and to the FTC.
• You can remain anonymous when you report.
• Authenticate the call by calling the clerk of the court’s office of the U.S. District Court in your area and verify the court order given by the caller.
Additional information about the U.S. Marshals Service can be found at http://www.usmarshals.gov
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America’s First Federal Law Enforcement Agency
Liberty County Man and Woman Behind My Buddy Loans Guilty of Fraud Related to COVID ReliefRead the Press Release
TEXARKANA, Texas– A Cleveland, Texas man and woman have pleaded guilty to wire fraud violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Clifton Pape, 47, and Sally Jung, 59, have each pleaded guilty to wire fraud violations before U.S. Magistrate Judge Caroline Craven. As part of their plea agreements, Pape and Jung have agreed to forfeit $680,710.31 and pay up to $3,223,870 in restitution.
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.”
“Predators that perpetuated schemes to steal vital funds aimed at mitigating the economic damage to the nation’s small businesses will be brought to justice,” said SBA Inspector General Hannibal Ware. “OIG continues to root out fraud and protect the integrity of SBA’s programs. I want to thank the U.S. Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
“Clifton Pape and Sally Jung used My Buddy Loans to exploit the Small Business Administration’s Economic Injury Disaster Loan program (EIDL) while also defrauding hundreds of individuals whom they misled,” said Special Agent in Charge William Smarr of the U.S. Secret Service Dallas Field Office. “The Secret Service stands ready with our law enforcement partners, like the SBA Office of Inspector General, to combat pandemic fraud. The Secret Service will continue to aggressively investigate and prosecute those who violate the public trust and exploit federal relief programs for their own personal gain.”
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.
A federal grand jury returned an indictment charging Pape and Jung with federal violations on Feb. 10, 2021. They each face 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 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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Panola County Men Sentenced for Federal Drug Trafficking CrimesRead the Press Release
TYLER, Texas – Three brothers and another man, all from Carthage, have been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Lavara Geray Hinton, 39, pleaded guilty on July 22, 2021; Perry Cornelius Hinton, 42, pleaded guilty on May 6, 2021; Alex Christopher Hinton, 41, pleaded guilty on May 19, 2021; and David Wayne Anderson, 41, pleaded guilty on July 22, 2021--all to conspiring to distribute methamphetamine. Lavara Hinton was sentenced to 120 months in federal prison, Perry Hinton was sentenced to 64 months in federal prison, Alex Hinton was sentenced to 120 months in federal prison, and David Anderson was sentenced to 120 months in federal prison today by U.S. District Judge J. Campbell Barker.
According to information presented in court, the Hinton brothers, Anderson, and other co-conspirators purchased bulk methamphetamine from various suppliers and distributed it to mid-level dealers and retail customers in the Panola County area. Lavara Hinton would accept firearms in trade for methamphetamine and would later sell the firearms. Lavara Hinton sold more than 600 grams of pure methamphetamine and 33 firearms to confidential informants working with law enforcement. Perry and Alex Hinton assisted Lavara Hinton by coordinating bulk methamphetamine purchases from their suppliers and also sold methamphetamine to their own customer bases. Anderson purchased methamphetamine from Lavara Hinton for personal use and for further distribution to his own customers.
The Hinton brothers, Anderson, and two others whose cases remain pending were indicted by a federal grand jury on Sep. 17, 2020, and charged with federal drug trafficking and firearms 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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the Panola County Sheriff's Office, the Gregg County Sheriff's Office, and prosecuted by Assistant U.S. Attorney D. Ryan Locker.
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Panamanian National Guilty of East Texas Drug Trafficking ViolationsRead the Press Release
SHERMAN, Texas – A Panamanian national has pleaded guilty to drug trafficking violations during his federal trial in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Jorge Albeiro Silva-Salazar, 53, pleaded guilty to conspiracy to manufacture and distribute five kilograms or more of cocaine for distribution into the United States and manufacturing and distributing five kilograms or more of cocaine for distribution into the United States. Silva-Salazar changed his plea to guilty on April 26, 2022, in the middle of the second day of his federal trial, before U.S. District Judge Amos L. Mazzant, III.
According to information presented in court, Silva-Salazar, aka Don Guillermo, is a Panamanian-based cocaine broker who utilized couriers to transport cocaine shipments from Colombia into Panama for further distribution to the United States. Airplanes, go-fast boats, semi-tractor trailer trucks, and passenger vehicles were used to transport most of the cocaine shipments.
“The coordination between the Eastern District of Texas and Republic of Panama is a premier example of law enforcement not only crossing borders, but continents, to keep our communities safer,” said U.S. Attorney Brit Featherston. “We are grateful to the Panamanian prosecutors, law enforcement officers and forensic chemists who work alongside our own federal agents and prosecutors to ensure justice prevails.”
“While thousands of miles away, the cocaine trafficking activity Mr. Silva-Salazar affected the lives of many people living in our East Texas neighborhoods,” said Eduardo A. Chávez, Special Agent in Charge of the DEA Dallas Field Division. “DEA offices both here in Dallas and in Panama are committed to ensuring justice is served and are continually working with our foreign counterparts to achieve our mutual goals of safety and security for our neighborhoods, whether in Sherman, Texas, or Panama City, Panama.”
A federal grand jury returned an indictment charging Silva-Salazar with federal drug trafficking violations on August 9, 2017. He faces up to life 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 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 U.S. Drug Enforcement Administration and the Panama National Police and prosecuted by Assistant U.S. Attorney Colleen Bloss.
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Louisiana Man Guilty of East Texas Federal Firearms ViolationsRead the Press Release
TYLER, Texas – A Baton Rouge man has been convicted of federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Marland Henry Gibson, 52, was convicted of being a felon in possession of a firearm following a two-day trial before 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 subsequent 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 the following items:
- a 144 Tactical LLC, model PS 15, 300 Blackout, multi caliber, handgun with magazine;
- six (6) .45 caliber cartridges;
- thirty (30) assorted .223/300 caliber cartridges;
- two (2) extended P-mag magazines containing ammunition;
- twenty-seven (27) .300 caliber cartridges;
- forty (40) .223/300 caliber cartridges;
- a Springfield XD magazine containing ammunition;
- six (6) .45 caliber cartridges;
- a box containing forty-seven (47) .45 caliber, Federal brand, cartridges; and
- a box containing forty-six (46) .45 caliber, Winchester brand, cartridges.
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. He faces up to 10 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case 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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Arlington Man Sentenced for East Texas Health Care Fraud SchemeRead the Press Release
TEXARKANA, Texas – An Arlington man has been sentenced to federal prison for his role in a health care fraud scheme in the Eastern District of Texas, announced U.S. Attorney Brit Featherston.
Jason Neil Hughes, 48, pleaded guilty on Sep. 10, 2021, to health care fraud and was sentenced to 14 months in federal prison today by U.S. District Judge Robert W. Schroeder, III. Hughes was also ordered to pay restitution in the amount of $416,124.68 to private health insurers.
According to information presented in court, Hughes was the owner and operator of ChangePoint Counseling Service, a mental health clinic in Forney, Texas. Hughes founded ChangePoint in 2013 and sold it in 2019. Between 2015 and 2019, Hughes carried out a scheme to defraud private health care insurers through the submission of false and fraudulent claims. Hughes and others incorrectly billed private insurance claims using a Texarkana doctor’s National Provider Identifier (“NPI”) for counseling services that the doctor did not provide. Although ChangePoint’s counselors had their own NPI numbers that could be used for billing counseling services, ChangePoint—at Hughes’s direction—used the doctor’s NPI to submit claims because the use of the doctor’s NPI resulted in higher payments from insurers. This billing practice resulted in ChangePoint receiving an average of 100% to 120% additional money paid per service from health insurers.
This case was investigated by the Federal Bureau of Investigation’s Tyler Field Office and prosecuted by Assistant U.S. Attorney Robert Austin Wells.
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Tennessee Man Guilty of East Texas Elder Fraud ViolationsRead the Press Release
TYLER, Texas – A Wartrace, TN, man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
John Arthur Fuss, 71, pleaded guilty to conspiracy to commit money laundering today before U.S. Magistrate Judge John D. Love.
According to information presented in court, Fuss was involved in a scheme developed and managed by a co-defendant. The scheme involved call center solicitations of various kinds, including home mortgage modifications, personal loans, payback of Social Security benefits, and IRS demands for payment. Victims were instructed to make payments through various money services businesses, or by mailing payments to specified addresses. Fuss was recruited to pick up payments from money services businesses or receive them in the mail, and then deposit them into accounts as instructed by one of the co-defendants. He also created at least one business so that the co-defendant could set up a bank account to use in the scheme. The overall scheme involved approximately $3.2 million in victims' payments and almost 2000 victims. Fuss admitted to being responsible for the deposit of approximately $1,173,233 in victim proceeds.
Fuss 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.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
This case is being investigated by the Internal Revenue Service-Criminal Investigation, HUD-OIG, and Treasury IG – Tax Administration and prosecuted by Assistant U.S. Attorneys Alan R. Jackson and Frank Coan.
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Houston Man Sentenced for East Texas Drug TraffickingRead the Press Release
BEAUMONT, Texas – A Houston man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Fernando Perez-Gomez, 36, was convicted at trial on July 20, 2021, of conspiracy to possess with intent to distribute a kilogram or more of heroin, 50 grams or more of methamphetamine, and five kilograms or more of cocaine. Perez-Gomez was sentenced to 235 months in federal prison by U.S. District Judge Marcia A. Crone on April 20, 2022.
According to information presented at trial, from at least May 2014 through May 2016, Perez-Gomez was involved in a conspiracy to traffic drugs from the Houston-area through the Eastern District of Texas and to various destinations for distribution through the United States. The investigation revealed that at least 16 persons were involved in this polydrug conspiracy, which resulted in the seizure of approximately 80 kilograms of cocaine, over four kilograms of methamphetamine, and a kilogram of heroin. Additionally, $2.5 million in cash was seized as part of the investigation.
“Illegal drugs continue to threaten the country and at home in our communities.,” said U.S. Attorney Brit Featherston. “Often it is the basis for other violent crime, property crime and, unfortunately, overdose deaths. We will continue to track, arrest, and prosecute those individuals like Perez-Gomez, who traffic their poison. We are thankful for the collaboration of law enforcement that worked diligently on this case.”
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, the Houston Police Department, the Pasadena Police Department, and the Texas Department of Public Safety. This case was prosecuted by Assistant U.S. Jonathan C. Lee.
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Houston County Pair Indicted for Solicitation of MurderRead the Press Release
TYLER, Texas – A federal grand jury has returned an indictment charging a Grapeland man and woman with federal solicitation of murder violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Reynaldo Campos, Jr., 44, and Robin Pittman, also known as Robin Hill, 42, were named in an indictment returned by a federal grand jury in Tyler charging them with murder for hire and conspiracy to commit murder for hire; solicitation to commit murder for hire and conspiracy to solicit murder for hire; possession of a firearm in furtherance of a crime of violence; and felon in possession of a firearm.
According to the indictment, on Feb. 9, 2022, Campos is alleged to have solicited a person he believed to be an associate of a co-conspirator, who was in fact an undercover federal agent, to murder a former associate of Campos. Campos discussed the intended murder with the agent on multiple occasions over the next several weeks. On April 8, 2022, Campos and Pittman traveled together from Houston County to Tyler to discuss the murder, to provide the “hit man” with a handgun to be used for the murder, and to provide the “hit man” with information about the intended target. On April 13, 2022, Campos and Pittman again traveled together from Houston County to Tyler to discuss the murder and to provide the “hit man” with approximately one gallon of Phenylacetone/P2P and a shotgun as partial payment for the murder of the intended target.
If convicted, the defendants face up to 10 years in federal prison.
This case is being investigated by the U.S. Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorney Jim Noble.
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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Austin-Area Man Guilty of Federal Fraud and Money Laundering ViolationsRead the Press Release
SHERMAN, Texas – A Leander man has been found guilty of federal 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 of conspiracy to commit wire fraud, wire fraud, money laundering, and aiding and abetting. The verdict was reached today following a four-day trial before U.S. District Judge Amos L. Mazzant.
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.
“This case represents our district’s continued efforts to root out and prosecute those persons who scam and victimize well-meaning investors. said U.S. Attorney Brit Featherston. “Although the case was complex and difficult to investigate and prosecute, our investigative partners and prosecution team rose to the occasion. The excellent investigation and prosecution provided ease to the jury to deliberate only an hour before finding the defendant guilty.”
“Under the guise of an established, professional tax business Mr. Nix solicited investments from individuals and secured their trust. In return, the investors found their 401(k) and bank accounts empty, and little hope in recovering their funds. The defendant’s Ponzi scheme stole a lifetime of financial resources from multiple victims, and turned them into lavish homes, cash and cars for his personal benefit,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “The FBI will continue to work with our partners to investigate financially devastating schemes and seek justice for victims of fraud.”
Nix was indicted by a federal grand jury on Nov. 19, 2020. He faces up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case 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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7 MS-13 Members Charged with Double Murder Inside Federal Penitentiary in Beaumont, Texas Resulting in Nationwide Lockdown of Federal Prison SystemRead the Press Release
BEAUMONT, Texas – A federal grand jury in the Eastern District of Texas returned an indictment this week in Beaumont charging seven inmates at U.S. Penitentiary Beaumont, who are members of the violent transnational criminal organization La Mara Salvatrucha, also known as the MS-13, for their involvement in a deadly prison attack on rival gang members on Jan. 31, 2022. All seven defendants are in federal custody. The case has been assigned to U.S. District Judge Marcia Crone.
U.S. Attorney for the Eastern District of Texas Brit Featherston, along with FBI Houston SAC James Smith, Homeland Security Investigations Houston SAC Mark Dawson, and Joint Task Force Vulcan Director (JTFV) John J. Durham, announced today the charges in the 15-count indictment against the MS-13 members identified below. The charges in the Indictment relate to the planning and execution of a violent attack orchestrated by members of MS-13 against Mexican Mafia and Sureños associates that resulted in two deaths, two attempted murders, and a nationwide lockdown of all inmates in the Federal Bureau of Prisons (BOP) for almost a week.
“Deterring prison violence remains a priority for the Department,” said Eastern District of Texas U.S. Attorney Brit Featherston. “Any prisoner who causes physical injury to another, inmate or corrections officer, will be prosecuted to the fullest extent of the law.”
“Disrupting dangerous plots that can arise from gangs like MS-13 in the federal prison system, as alleged in today’s indictment, is a matter of utmost importance for the FBI and to me personally as a former supervisory special agent for the MS-13 National Gang Task Force Unit in the Criminal Investigative Division at Headquarters,” said FBI Houston SAC James Smith. “The FBI served as a force multiplier and the lead investigative agency for this case immediately following the murders. In support of this massive investigation, we completed over 100 interviews, conducted over 60 searches, reviewed hours of surveillance footage, and seized countless weapons and contraband. The FBI remains resolute in our commitment to continue working side by side with our law enforcement partners to defeat and deter gang violence anywhere it occurs.”
“Transnational violent gangs are a significant threat to our national security whether they are entrenched within our communities or incarcerated in our correctional facilities,” said Homeland Security Investigations (HSI) Houston Special Agent in Charge Mark Dawson. “This indictment demonstrates our commitment to disrupting and dismantling this threat.”
“Even while incarcerated, MS-13 members remain committed to the organization’s violent ideology and, as alleged in this indictment, continue to engage in extreme acts of murder and attempted murder,” stated Director Durham. “The Department of Justice and our law enforcement partners will not yield, and we will hold MS-13 members accountable for their crimes, whether in prisons or on the street.” Director Durham extended his sincere appreciation to all members of JTFV, especially the FBI, HSI and BOP’s National Gang Unit, who spearheaded this investigation.
As alleged in the indictment unsealed today:
MS-13 is a transnational criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador, but also includes members from other countries such as Honduras, Guatemala, and Mexico. Although the gang originated in Los Angeles, California, it quickly spread and is now a national and international criminal organization with an estimated 10,000+ members regularly conducting gang activities in nearly all of the United States, including Texas, California, New York, and in El Salvador, Honduras, Guatemala, and Mexico.
The Mexican Mafia controls large portions of the Hispanic prison population in California and Texas and the federal prison system. MS-13 has had a symbiotic relationship with both the Mexican Mafia and the Sureños, which is a close association of Hispanic gangs that pay tribute to the Mexican Mafia while incarcerated in federal and state prisons in the United States. As alleged in the Indictment, however, that symbiotic relationship recently began to fall apart as MS-13’s leadership in El Salvador, the Ranfla Nacional, sought to exert more control and independence of its own members while incarcerated in prisons within the United States, including using MS-13 command and control structure to enforce their orders, including orders to commit murders, even while in prison.
On Jan. 31, 2022, at USP Beaumont, seven MS-13 members, converged in A-A Housing Unit and attacked multiple Sureños members and one Mexican Mafia associate. Defendant Rivas-Moreiera began the prison attack when he came up behind Guillermo Riojas and stabbed Riojas twice in the chest. Riojas fell immediately, and other MS-13 defendants stabbed and kicked Riojas while he lay motionless on the prison floor. The MS-13 defendants then chased, cornered, beat, and repeatedly stabbed Andrew Pineda, and other Sureños members. The prison attack lasted approximately three minutes.
Defendants Rivas-Moreiera, Alfaro-Granado, and Landaverde-Giron are all serving sentences of life imprisonment for their participation in MS-13 and committing murder in aid of racketeering in furtherance of MS-13. Defendant Ramires is also serving a sentence of 27 years’ imprisonment following his conviction for participating in MS-13 and committing a murder on behalf of the gang.
The Victims:
Riojas died as a result of the prison attack. He was inflicted with multiple stab wounds to his heart and lung. Likewise, Pineda died as a result of the prison attack. He suffered more than 45 distinct stab wounds to his body. Sureños member 1 was stabbed multiple times and taken to a hospital by emergency services as a result of the prison attack. Sureños member 2 was also stabbed numerous times. Both victims ultimately survived the attack by the MS-13 defendants.
This indictment is the product of coordination between the U.S. Attorney’s Office for the Eastern District of Texas (EDTX) and Joint Task Force Vulcan (JTFV), which was created in August 2019 as a whole-of-government approach to dismantle transnational criminal organizations, such as MS-13. Since its creation, JTFV has successfully increased coordination and collaboration with foreign law enforcement partners, including El Salvador, Mexico, Honduras and Guatemala; designating priority MS-13 programs, cliques and leaders, who have the most impact on the United States, for targeted prosecutions; and coordinating significant MS-13 indictments in U.S. Attorney’s Offices across the country, including the first use of national security charges against MS-13 leaders, such as the Ranfla Nacional, in El Salvador. JTFV has been comprised of members from U.S. Attorney’s Offices across the country, including EDTX; the Eastern District of New York; the Southern District of New York; the District of New Jersey; the Northern District of Ohio; the District of Utah; the Eastern District of Virginia; the District of Massachusetts; the District of Alaska; the Southern District of Florida; the Southern District of California; the District of Nevada; and the District of Columbia, as well as the Department of Justice’s National Security Division and the Criminal Division. In addition, all Department of Justice law enforcement agencies are involved in the effort, including the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; and the Bureau of Prisons. In addition, Homeland Security Investigations also plays a critical role in JTFV.
The charges announced today are allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, the defendants face a maximum sentence of life in prison, and the defendants are eligible for the death penalty.
This case is being prosecuted by Assistant U.S. Attorney Joe Batte from the U.S. Attorney’s Office for EDTX, Assistant U.S. Attorney Christopher A. Eason for the U.S. Attorney’s Office for EDTX and from JTFV, Assistant U.S. Attorney Jacob Warren for the U.S. Attorney’s Office for the Southern District of New York and from JTFV, and Assistant U.S. Attorney Stewart M. Young for the U.S. Attorney’s Office for the District of Utah and from JTFV. The charges in the indictment were investigated by the FBI and the BOP.
The Defendants:
- Juan Carlos Rivas-Moreiera, aka “Juan Carlos Moriera,” aka “Stocky”
Age: 41
Place of Birth: El Salvador
United States District Court of Prosecution: District of Maryland
- Dimas Alfaro-Granado, aka “Toro”
Age: 39
Place of Birth: El Salvador
United States District Court of Prosecution: Northern District of Georgia
- Raul Landaverde-Giron, aka “Decente,” aka “Humilde”
Age: 32
Place of Birth: El Salvador
United States District Court of Prosecution: District of Maryland
- Larry Navarete, aka “El Socio”
Age: 41
Place of Birth: Nicaragua
United States District Court of Prosecution: Western District of Arkansas
- Jorge Parada, aka “Rama”
Age: 42
Place of Birth: El Salvador
United States District Court of Prosecution: Eastern District of Virginia
- Hector Ramires, aka “Cuervo”
Age: 28
Place of Birth: Honduras
United States District Court of Prosecution: District of Massachusetts
- Sergio Sibrian, aka “Anytime”
Age: 29
Place of Birth: El Salvador
United States District Court of Prosecution: Central District of California
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Texas Man Sentenced in Cryptocurrency Money Laundering ConspiracyRead the Press Release
TYLER, Texas – An Irving man has been sentenced to federal prison for his role in a cryptocurrency money laundering conspiracy in the Eastern District of Texas, announced U.S. Attorney Brit Featherston.
Deependra Bhusal, 46, pleaded guilty on April 30, 2021, to conspiracy to commit money laundering and was sentenced to 46 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to information presented in court, Bhusal was involved in a multi-year money laundering conspiracy involving the laundering of criminal proceeds derived from various scams. Bhusal’s role in the money laundering conspiracy was to open bank accounts and mailboxes that were used to receive and transact victim funds, to receive the victim funds, to engage 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 to move the criminal proceeds to foreign co-conspirators. Bhusal and his co-conspirators routinely exchanged the criminal proceeds for cryptocurrency and directed the cryptocurrency to wallets under the control of their foreign co-conspirators. In August 2020, Bhusal and his co-conspirators traveled to Longview, Texas, where they attempted to exchange approximately $450,000 in criminal proceeds for Bitcoin.
In the course of the operation, Bhusal was personally responsible for laundering $1,437,358.99 in criminal proceeds.
On March 10, 2022, co-conspirators Lois Boyd, 75, of Amelia Court House, Virginia, and Manik Mehtani, 33, of McLean, Virginia, were named in an indictment returned by a federal grand jury, charging them with a violation of the Travel Act, money laundering, and money laundering conspiracy.
If convicted, Boyd and Mehtani face up to 20 years in federal prison. 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. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr.
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Jefferson County Man Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Luis Roberto Alonzo, 24, pleaded guilty on Oct. 27, 2021, to being a felon in possession of a firearm and was sentenced to 30 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, on April 26, 2021, law enforcement responded to a motel in Groves where it was reported Alonzo refused to leave the property. After making contact with Alonzo, it was determined that Alonzo had an outstanding warrant. Officers also discovered a shotgun in the backseat of the vehicle he was seen exiting. Alonzo is a previously convicted felon and prohibited by federal law from owning or possessing firearms or ammunition. Alonzo was indicted by a federal grand jury on August 4, 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 Groves Police Department and the Port Neches Police Department and prosecuted by Assistant U.S. Attorney Russell James.
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Arkansas Man Sentenced to Federal Prison for Nacogdoches Drug TraffickingRead the Press Release
BEAUMONT, Texas – A Little Rock, AR man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Leanthony Ray Moses, 45, pleaded guilty on July 28, 2021, to conspiracy to distribute and possess with intent to distribute methamphetamine and was sentenced to 135 months in federal prison today by U.S. District Judge Michael Truncale.
According to information presented in court, on Sep. 17, 2019, Moses was stopped by local law enforcement in Nacogdoches for a traffic violation. The officer’s canine partner alerted to the presence of drugs in the vehicle during the traffic stop. A search of the vehicle revealed 2,926 grams of methamphetamine. Moses was indicted by a federal grand jury on Nov. 20, 2019, and charged with federal drug trafficking violations.
This case was investigated by Homeland Security Investigations and the Nacogdoches Police Department and prosecuted by Assistant U.S. Attorney Donald S. Carter.
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Justice Department Files False Claims Act Complaint Against Two Laboratory CEOs, One Hospital CEO and Others Across Texas, New York, and PennsylvaniaRead the Press Release
The Justice Department has filed a complaint against two laboratory CEOs, one hospital CEO and other individuals and entities, alleging False Claims Act violations based on patient referrals in violation of the Anti-Kickback Statute and the Stark Law, as well as claims otherwise improperly billed to federal healthcare programs for laboratory testing.
According to the United States’ complaint, laboratory executives and employees at True Health Diagnostics LLC (THD) and Boston Heart Diagnostics Corporation (BHD) allegedly conspired with small Texas hospitals, including Rockdale Hospital dba Little River Healthcare (LRH), to pay doctors to induce referrals to the hospitals for laboratory testing, which was then performed by BHD or THD. The complaint alleges that the hospitals paid a portion of their laboratory profits to recruiters, who in turn kicked back those funds to the referring doctors. The recruiters allegedly set up companies known as management service organizations (MSOs) to make payments to referring doctors that were disguised as investment returns but were actually based on, and offered in exchange for, the doctors’ referrals. As alleged in the complaint, BHD and THD executives and sales force employees leveraged the MSO kickbacks to doctors to increase referrals and, in turn, their bonuses and commissions. The complaint alleges that laboratory tests resulting from this referral scheme were billed to various federal health care programs, and that the claims not only were tainted by improper inducements but, in many cases, also involved tests that were not reasonable and necessary. In addition, the complaint alleges that, to increase reimbursement, LRH falsely billed the laboratory tests as hospital outpatient services.
“The Department of Justice is committed to holding accountable individuals and entities who commit and profit from healthcare fraud,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to pursue those who enter into unlawful financial arrangements that waste taxpayer dollars, improperly influence healthcare providers’ medical judgments and subject patients to unnecessary testing or other services.”
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. The Stark Law forbids a hospital or laboratory from billing Medicare for certain services referred by physicians that have a financial relationship with the hospital or laboratory. The Anti-Kickback Statute and the Stark Law seek to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The United States’ complaint also alleges that various THD employees, including THD’s CEO, participated in schemes to pay other forms of kickbacks, including: (a) processing and handling fees to draw site companies; (b) monthly fees to a top-referring doctor, disguising the payments as consulting fees for participating in THD’s advisory board, even though no such board actually existed at THD; and (c) waiving patient copayments and deductibles meant to ensure that patients share in, and have an interest in controlling, the amounts billed to federal healthcare programs. These kickbacks allegedly were paid to induce referrals to Medicare, Medicaid and TRICARE for laboratory testing, including laboratory tests that were not reasonable and necessary.
The United States’ complaint names the following defendants:
- Christopher Grottenthaler, of Frisco, Texas, THD’s founder and former CEO
- Susan Hertzberg, of New York, BHD’s former CEO
- Jeffrey “Boomer” Cornwell, of McKinney, Texas, THD’s former Vice President of Sales for the Southwestern Region
- Stephen Kash, of Beaumont, Texas, THD’s former Director of Strategic Accounts and MSO recruiter
- Courtney Love, of Dallas, Texas, former THD Account executive
- Matthew Theiler, of Mars, Pennsylvania, BHD’s former Vice President of Sales
- William Todd Hickman, of Lumberton, Texas, owner and operator of defendants Ascend Professional Management Inc., Ascend Professional Consulting Inc., and BenefitPro Consulting LLC
- Laura Howard, of McKinney, Texas, former BHD Area Sales Manager and MSO recruiter
- Christopher Gonzales, of McKinney, Texas, MSO recruiter
- Jeffrey Madison, of Georgetown, Texas, LRH’s former CEO
- Peggy Borgfeld, of Lexington, Texas, LRH’s former Chief Financial Officer and Chief Operations Officer
- Stanley Jones, of San Antonio, Texas, MSO recruiter and co-owner and operator of defendant LGRB Management Services LLC (LGRB)
- Jeffrey Parnell, of Dallas, Texas, MSO recruiter and co-owner and operator of LGRB
- Thomas Gray Hardaway, of San Antonio, Texas, MSO recruiter and co-owner and operator of LGRB
- Ruben Marioni, of Spring, Texas, MSO recruiter and co-owner and operator of defendant Next Level Healthcare Consultants LLC (Next Level)
- Jordan Perkins, of Conroe, Texas, MSO recruiter and co-owner and operator of Next Level
- Ginny Jacobs, of Magnolia, Texas, MSO recruiter and co-owner and operator of defendants S&G Staffing LLC (S&G) and Jacobs Marketing Inc. (Jacobs Marketing)
- Scott Jacobs, of Magnolia, Texas, MSO recruiter and co-owner and operator of S&G and Jacobs Marketing
“Paying kickbacks to physicians distorts the medical decision-making process, corrupts our healthcare system and increases the cost of healthcare funded by the taxpayer,” said U.S. Attorney Brit Featherston for the Eastern District of Texas. “Laboratories, marketers and physicians cannot immunize their conduct by attempting to disguise the kickbacks as some sort of investment arrangement. Our office is committed to looking through the disguise and putting an end to any arrangement where the purpose is to improperly influence medical decision making through the payment of kickbacks.”
“When health care providers boost their profits through kickback schemes, they risk compromising the integrity of federal health care programs while increasing health care costs for everyone,” said Special Agent in Charge Miranda L. Bennett of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, our agency is committed to thoroughly investigating such allegations of fraud.”
“Today’s outcome is a testament to the dedication and determination of the Department of Defense Office of Inspector General (DoD IG), Defense Criminal Investigative Service (DCIS) and our law enforcement partners to safeguard our military’s healthcare system, known as TRICARE,” said Special Agent in Charge Michael C. Mentavlos of the DCIS Southwest Field Office. “DCIS will continue to coordinate closely with the Department of Justice to hold accountable those that attempt to take advantage of the TRICARE program, defrauding the taxpayer and undermining mission readiness.”
The United States filed its complaint in a lawsuit originally filed under the qui tam or whistleblower provisions of the False Claims Act by STF LLC, whose members are Dr. Felice Gersh M.D. and Chris Riedel. Under the act, a private party can file an action on behalf of the United States and receive a portion of the recovery. The act permits the United States to intervene in such lawsuits and add claims and defendants, as it has done here. The qui tam case is captioned United States ex rel. STF, LLC v. Christopher Grottenthaler, et al. If a defendant is found liable for violating the act, the United States may recover three times the amount of its losses plus applicable penalties.
The United States’ pursuit of this lawsuit illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This case is being handled by the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of Texas. Investigative support is being provided by the Department of Health and Human Services’ Office of Inspector General and the Defense Criminal Investigative Service. As a result of its efforts, the United States has already recovered more than $30 million relating to conduct involving BHD, THD and LRH, including False Claims Act settlements with 25 physicians, two healthcare executives and a laboratory company.
This case is being handled by Civil Division Senior Trial Counsel Christopher Terranova, Trial Attorney Gavin Thole and Assistant U.S. Attorneys James Gillingham, Adrian Garcia and Betty Young for the Eastern District of Texas.
The claims in the complaint are allegations only, and there has been no determination of liability.
Smith County Man Guilty of Federal Income Tax ViolationRead the Press Release
TYLER, Texas – A Whitehouse, Texas, man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Anthony D. Klein, 47, pleaded guilty to attempting to evade or defeat tax today before U.S. Magistrate Judge John D. Love.
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.
Klein faces 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. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
The case is being investigated by the Internal Revenue Service-Criminal Investigation and prosecuted by Assistant U.S. Attorney Alan R. Jackson.
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Nigerian “Prince” Sentenced for Federal Fraud ViolationsRead the Press Release
SHERMAN, Texas – A Nigerian man has been sentenced to federal prison for federal fraud violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Sobanke Idris Sunday Adereti, 24, pleaded guilty on Oct. 25, 2021, to passport fraud and attempted bank fraud, and was sentenced to 33 months in federal prison today by U.S. District Judge Jeremy D. Kernodle.
According to court documents, in March 2021, Adereti presented a false passport and a falsely procured certified check when trying to open a bank account in Flower Mound, Texas. The check was purchased by a fraud victim who was induced into sending money to Adereti, falsely known as “Robinson Elijah.” He was likely acting as a money mule to cash the victim’s checks. When Adereti was arrested, he had additional passports and bank statements in other names in his possession. Investigators determined that Adereti was also connected to scams related to business email compromise fraud and other government program fraud. Additionally, evidence showed that Adereti was the son of a Nigerian traditional ruler and entered the United States on a visitor’s visa in 2018, which has since expired.
“Scams to steal money are around every corner,” said U.S. Attorney Brit Featherston. “Thanks to the keen eye of bank officials, Adereti was apprehended. Unfortunately, many of these crimes target our vulnerable elder population. It is up to all of us to share this awareness and look out for our greatest generation.”
A federal grand jury returned an indictment charging Adereti with federal violations on April 7, 2021.
This case is part of the Department of Justice’s Elder Justice Initiative. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
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.
This case was investigated by the Diplomatic Security Service for the U.S. Department of State, the Flower Mound Police Department, the U.S. Small Business Administration – Office of Inspector General, the United States Secret Service, with assistance from the Federal Bureau of Investigation and was prosecuted by the United States Attorney’s Office for the Eastern District of Texas.
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Smith County Man Guilty of Child Exploitation ViolationsRead the Press Release
TYLER, Texas – A Tyler man has pleaded guilty to federal child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Daniel Dylan Skipworth, 20, pleaded guilty to transporting a minor to engage in sexual activity today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, Skipworth admitted that in April 2021, he transported a 13-year-old he met online from the state of Alabama to his residence in Tyler to commit the offense of sexual abuse of a minor. Skipworth’s conviction is the result of a cooperative effort involving the FBI, Tyler Police Department, and the Smith County District Attorney’s Office, who undertook the investigation after analyzing GPS data associated with the phone of a child who had been reported missing by her foster parents in Alabama.
“Children in our community are safer today than yesterday,” said U.S. Attorney Brit Featherston. “Parents must be aware that dangerous predators lurk behind computer screens in our homes. Like protecting our children who play at the park, we too must take precaution to protect our most vulnerable population in the cyber-world. Law enforcement places protecting children at our highest priority. To those who harm children, we will find you, arrest you, prosecute you and, seek the harshest punishment for you.”
“No child should ever have to go through this, and we will do all that we can to ensure that vulnerable members of our community are protected from those who seek to do them harm,” said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The defendant will be held accountable for his egregious actions, and we will remain committed to investigating anyone who exploits children.”
“The Smith County District Attorney’s Office is grateful for the cooperation of federal and local law enforcement to protect society and this child victim, while ensuring that the defendant is held accountable as a convicted sex offender,” said Smith County District Attorney Jacob Putman.
Skipworth faces a minimum of 10 years and up to life 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. In addition, Skipworth will be required to register as a sex offender for the rest of his life.
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 Tyler Resident Agency, Tyler Police Department and Smith County District Attorney’s Office and prosecuted by Assistant U.S. Attorney Lucas Machicek.
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Orange County Man Sentenced to Federal Prison for Child Pornography ViolationsRead the Press Release
BEAUMONT, Texas – An Orange, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Joshua Welch, 50, pleaded guilty on Sep. 20, 2021, to production of child pornography and was sentenced to 240 months in federal prison today by U.S. District Judge Marcia A. Crone.
“Those who choose to harm a child will quickly find themselves the number one target of law enforcement,” said U.S. Attorney Brit Featherston. “No stone will be left un-turned to stop child predators. Our law enforcement partners are dedicated to protecting our most precious population. Thank you to those men and women who work tirelessly to make our community playgrounds and our virtual playgrounds a safe place for all children.”
According to information presented in court, in April 2021, federal agents in Beaumont received information from federal agents in Syracuse, NY, regarding an internet user who had uploaded images containing child pornography and sent them to another user. An investigation had determined the initial sender of the material was in Orange, Texas. On May 17, 2021, federal agents issued a search warrant at the residence in Orange and encountered Welch. Welch admitted to producing the child pornography images and downloading. He also admitted to visiting other internet websites to view images of child pornography. Welch was indicted by a federal grand jury on June 2, 2021.
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 Orange County Sheriff’s Office and prosecuted by Assistant U.S. Attorney Rachel Grove.
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North Texas Couple Sentenced to Federal Prison for Defrauding HomeownersRead the Press Release
SHERMAN, Texas – A Kaufman County man and his girlfriend have been sentenced to federal prison for fraud violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Tommy Ray Williams, 44, of Terrell, pleaded guilty on August 10, 2021, to conspiracy to commit wire fraud and was sentenced to 180 months in federal prison by U.S. District Judge Amos Mazzant on March 23, 2022. Whitney Jane Law, 33, of Point, Texas, pleaded guilty to a misprision of felony for her role in the scheme and was sentenced to 18 months in federal prison today by Judge Mazzant.
Williams and Law were also ordered to pay restitution jointly and severally in the amount of $820,900.00 to their victims, several of whom are elderly.
“The elderly are often the target of fraud and contractor fraud is a common avenue to take advantage of our greatest generation,” said U.S. Attorney Brit Featherston. “This is where old fashioned values come into play, watching out for our neighbors who, just maybe, are being taken advantage of. Before hiring someone to do work around your home, check out their business reputation. The FBI and United States Attorney's Office will continue to aggressively investigate and prosecute those unethical and immoral persons that have the audacity, through fraud schemes, to take advantage of vulnerable victims, residents of our community, and the elderly.”\
“The defendants are scammers that took more than money, they stole their victim’s sense of home. Their schemes demanded payment, destroyed property and left behind worry and regret,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “We are confident that this investigation had a significant impact for our community, and we will continue to work with our partners to seek justice for victims of fraud.”
According to information presented in court, Williams was involved in a conspiracy in which the conspirators would receive remodel referrals from a third-party company and then contact the homeowner and arrange for a site inspection. Williams, alone or with others, would travel to the homeowner’s residence, discuss the types of remodeling work required, and provide a bid for services. On occasion Williams would have an associate of his do the preliminary site inspection and bid. Williams would require a large amount of money before the work began and often would require more funds immediately after the work began, blaming this on costs such as materials that had to be purchased. Williams would require that the homeowners write out checks payable to him, an associate, or to one of the business entities that they used. After the homeowner made their initial payments, individuals would appear at the house and begin demolition work, often destroying key parts of the home such as plumbing, flooring, sheetrock, walls, and roofing, and would sometimes begin installation or construction work. Soon after the work began, however, the work crews would stop coming to the residence and the renovation work would be left undone. The homeowners would try to contact Williams, who would sometimes respond but eventually stopped responding, and did not return their funds. Over the course of the scheme, more than 15 homeowners and a credit card processing company were defrauded of over $800,000. Law was charged in an information with misprision of a felony. The information alleges that she had actual knowledge of a commission of the felony, failed to notify authorities, and took at least one step to conceal the crime.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
This case was investigated by the FBI Dallas, Frisco Resident Agency and prosecuted by the U.S. Attorney’s Office for the Eastern District of Texas.
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Ten Texas Doctors and a Healthcare Executive Agree to Pay over $1.68 Million to Settle Kickback AllegationsRead the Press Release
SHERMAN, Texas – Ten additional Texas doctors and a healthcare executive have agreed to pay a total of $1,680,430 to resolve False Claims Act allegations involving illegal kickbacks in violation of the Anti-Kickback Statute and Stark Law, and to cooperate with the Department’s investigations of and litigation against other parties, announced Eastern District of Texas U.S. Attorney Brit Featherston today.
“There is nothing more paramount to justice than holding all individuals accountable for committing and profiting from healthcare fraud, no matter their station in life,” said U.S. Attorney Brit Featherston. “These additional settlements with these physicians and another healthcare executive exude our office’s continued dedication to pursuing all individuals who have tried to disguise their illegal kickback schemes under a fig-leaf of legitimacy through purported investment opportunities in order to enrich themselves at the expense of taxpayer-funded healthcare programs.”
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally funded programs. The Stark Law forbids a hospital or laboratory from billing Medicare for certain services referred by physicians that have a financial relationship with the hospital or laboratory. The Anti-Kickback Statute and the Stark Law are intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
The settlements announced today resolve allegations that ten Texas doctors violated the Anti-Kickback Statute by receiving thousands of dollars in remuneration from eight management service organizations (MSOs) in exchange for ordering laboratory tests from Rockdale Hospital d/b/a Little River Healthcare (Little River), True Health Diagnostics LLC (True Health), and/or Boston Heart Diagnostics Corporation (Boston Heart). Little River allegedly funded the remuneration to certain doctors, in the form of volume-based commissions paid to independent contractor recruiters, who used MSOs to pay numerous doctors for their referrals. The MSO payments to the doctors were allegedly disguised as investment returns but in fact were based on, and offered in exchange for, the doctors’ referrals.
- Tamar Brionez, M.D., of Spring, Texas, agreed to pay $85,006 to settle allegations that from March 14, 2016 to March 16, 2017 she received kickbacks from an MSO, Tomball Medical Management, Inc., in exchange for ordering laboratory tests from Little River.
- Gary Goff, M.D., of Dallas, Texas, and two affiliated entities, Gary Goff, MD, PA and DFW Primary Medical Alliance, LLC, agreed to pay $454,088 to settle allegations that from August 5, 2015 to September 7, 2018 he and his entities received kickbacks from two MSOs, Alpha Rise Health, LLC and HALOS Clinical Management, LLC, in exchange for ordering laboratory tests from True Health and Little River.
- John Hierholzer, M.D., of San Antonio, Texas, agreed to pay $24,850 to settle allegations that from May 18, 2015 to February 12, 2016, he received kickbacks from an MSO, Alpha Rise Health, LLC, in exchange for ordering laboratory tests from Boston Heart and Little River.
- Bruce Maniet, D.O., of Bells, Texas, agreed to pay $175,436 to settle allegations that from January 18, 2016 to October 23, 2017 he received kickbacks from two MSOs, Ascend MSO of TX, LLC and Herculis MG LLC, in exchange for ordering laboratory tests from Boston Heart and Little River.
- Huy Chi Nguyen, M.D., of Arlington, Texas, agreed to pay $211,821 to settle allegations that from October 30, 2015 to December 31, 2017 he received kickbacks from (a) one MSO, Ascend MSO of TX, LLC, in exchange for ordering laboratory tests from True Health and Little River; and (b) another MSO, Geminorium MG LLC, in exchange for ordering laboratory tests from Boston Heart.
- Dung Chi Nguyen, M.D., of Arlington, Texas, agreed to pay $211,721 to settle allegations that from November 4, 2015 to December 31, 2017 he received kickbacks from (a) one MSO, Ascend MSO of TX, LLC, in exchange for ordering laboratory tests from True Health and Little River; and (b) another MSO, Geminorium MG LLC, in exchange for ordering laboratory tests from Boston Heart.
- Rakesh Patel, D.O., of Houston, Texas, agreed to pay $174,539 to settle allegations that from August 25, 2015 to April 19, 2017 he received kickbacks from an MSO, SYNRG Partners LLC, in exchange for ordering laboratory tests from True Health and Little River.
- Cuong Trinh, M.D., of Houston, Texas, agreed to pay $45,056 to settle allegations that from July 28, 2015 to August 30, 2016 she received kickbacks from an MSO, SYNRG Partners LLC, in exchange for ordering Boston Heart laboratory tests from Little River.
- Randall Walker, M.D., of Magnolia, Texas, agreed to pay $60,898 to settle allegations that from November 7, 2014 to August 28, 2015 he received kickbacks from two MSOs, North Houston MSO Group, Inc. and Tomball Medical Management, Inc., in exchange for ordering laboratory tests from Little River.
- Michael Whiteley, D.O., of Tomball, Texas, agreed to pay $52,015 to settle allegations that from January 5, 2015 to July 10, 2015 he received kickbacks from two MSOs, North Houston MSO Group, Inc. and Tomball Medical Management, Inc., in exchange for ordering laboratory tests from Little River.
As part of their settlements, the ten physicians have agreed to cooperate with the Department of Justice’s investigations of and litigation against other parties involved in the alleged violations of law.
In addition, the United States announced a settlement with Brett Markowitz, the founder and CEO of Florida Rejuvenation Holdings, LLC, which operates medical practices in Tampa, Florida (collectively, the Tampa Practices). From October 18, 2016 through February 19, 2018, True Health representatives allegedly arranged for True Health to pay for each patient that physicians at the Tampa Practices referred to True Health for clinical laboratory services. True Health allegedly initially paid $25 per referral to The Blood Spot, Inc. (TBS), a company associated with and controlled in part by a True Health representative, and True Health allegedly subsequently paid $35 per referral to Express Mobile Labs, LLC (EML), a company associated with and controlled in part by Markowitz. True Health, TBS, EML, and Markowitz allegedly disguised the payments as purported processing and handling (P&H) fees. As alleged, True Health and Markowitz knew and intended that TBS and EML would pay some or all of True Health’s P&H fee payments to Markowitz, directly or indirectly, in cash or in kind. Pursuant to the alleged arrangement, True Health billed the resulting claims to Medicare and other federal healthcare programs. Under the terms of the settlement agreement, Markowitz agreed to pay $185,000 and to cooperate with the Department’s investigations of and litigation against other parties.
“Health care providers engaging in kickback schemes undermine both the public’s trust in medical institutions and the financial integrity of federal health care programs. Medical decision-making should be based on the well-being of patients, rather than the desire for ill-gotten profits,” said HHS-OIG Special Agent in Charge Miranda L. Bennett. “Working with our law enforcement partners, our agency is committed to thoroughly investigating such allegations of fraud.”
“As the investigative arm of the DoD Office of Inspector General, the Defense Criminal Investigative Service (DCIS) and our colleagues work hard to hold accountable those who undermine Federal health care programs such as TRICARE,” said Acting Special Agent in Charge Gregory P. Shilling of the DCIS Southwest Field Office. “Today’s announcement is another example of those efforts in making the Government, and ultimately taxpayer, as whole as possible.”
“These additional settlements send a clear message that all who would seek to defraud federal healthcare programs will be held accountable,” said Special Agent in Charge Jeffrey Breen of the Department of Veterans Affairs Office of Inspector General’s South Central Field Office. “The VA OIG will continue to work with the U.S. Attorney’s Office and our law enforcement partners to enforce the Stark Law and the Anti-Kickback Statute and act as a safeguard for taxpayer-funded veteran healthcare programs.”
The civil settlements were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Texas and the Civil Division’s Commercial Litigation Branch, Fraud Section, with assistance from HHS-OIG, DCIS, and VA-OIG. As a result of its efforts, the United States has recovered over $29.6 million relating to conduct involving Boston Heart, True Health, and Little River, including False Claims Act settlements with seventeen physicians, two healthcare executives, and one laboratory. This matter and the related matters were handled by Assistant U.S. Attorneys James Gillingham, Adrian Garcia, and Betty Young, Senior Trial Counsel Christopher Terranova, and Trial Attorney Gavin Thole.
The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
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Russian National Indicted in East Texas for Cyber Hacking EnterpriseRead the Press Release
TYLER, Texas –A 23-year-old Russian man has been indicted in the Eastern District of Texas for offenses related to operating a cyber-criminal marketplace that sold thousands of stolen login credentials, personal identifiable information, and authentication tools, announced Eastern District of Texas U.S. Attorney Brit Featherston.
Igor Dekhtyarchuk, a resident and national of the Russian Federation (Russia), was named in an indictment returned by a federal grand jury on March 16, 2022, charging him with offenses related to operating a cyber-criminal marketplace that sold thousands of stolen login credentials, personal identifiable information, and authentication tools.
According to the indictment, Dekhtyarchuk operated Marketplace A, which claimed to have sold access to more than 48,000 compromised email accounts, more than 39,000 compromised online accounts, and averaged approximately 5,000 daily visitors. Marketplace A specialized in the sale of unlawfully obtained access devices for compromised online payment platforms, retailers, and credit card accounts, including providing the data associated with those accounts such as names, home addresses, login credentials, and payment card data for the victims, who are the actual owners of those accounts. Marketplace A’s business is known as a “carding shop” in the cyber-criminal world.
Dekhtyarchuk was the administrator of Marketplace A and was a Russian hacker who first appeared in hacker forums in November 2013 under the alias “floraby.” Dekhtyarchuk began advertising the sale of compromised account data in Russian-language hacker forums in April 2018 and opened Marketplace A in May 2018. Dekhtyarchuk immediately began advertising Marketplace A and the products it sold in May 2018.
A potential customer who visited Marketplace A to purchase access devices for compromised accounts could select different products just as in a legitimate web store. The options included various combinations of online and credit card accounts for the same victim. For example, one option allowed Dekhtyarchuk’s customers to purchase the information to unlawfully access two online retail accounts plus receive credit card information for the same victim. Some options were broken down by known account balances, which were sold at different price points.
Dekhtyarchuk also sold the usage, in seven-day rental increments, of a program called “[Company A] Auth 1.0,” which was a downloadable software program that the customer could use to input the stolen access devices, and using the provided cookie, to access the compromised Company A accounts.
Beginning in March 2021 and ending in July 2021, the FBI through an online covert employee (OCE) made thirteen purchases of access devices from Dekhtyarchuk while accessing Marketplace A from the Eastern District of Texas. Each purchase varied in number of accounts, ranging from three to twenty accounts, resulting in access devices purchased for a total of 131 accounts. The OCE received the purchased access devices via link or Telegram messenger service shortly after completing each purchase.
Dekhtyarchuk has been placed on the FBI's Cyber Most Wanted List.
“This case exemplifies the need for all of us, right now, to take steps to protect our online identity, our personal data, and our monetary accounts,” said U.S. Attorney Brit Featherston. “Cyber-criminals are lurking behind the glow of computer screens and are harming Americans. These investigations require dedicated professionals who work tirelessly to stop thieves that steal from unknowing innocent people. To those who dedicate their lives to stopping cyber-criminals, we thank you.”
“The cyber-criminal marketplace operated by Dekhtyarchuk promoted and facilitated the sale of compromised credentials, personally identifiable information (PII), and other sensitive financial information,” said FBI Houston Special Agent in Charge Jim Smith. “Cyber-criminal actors behind these marketplaces go to great length to obfuscate their true identities and often utilize other sophisticated methods to further anonymize their activities. Success in these complex investigations is dependent on teamwork and collaboration between the FBI, our international partners, and our private sector partners. It is only through our commitment, coordinated efforts and strategic partnerships that we will be able to defeat the cyber threat.”
If convicted, Dekhtyarckuk faces up to 20 years in federal prison. 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 case is being investigated by the Federal Bureau of Investigation Houston Cyber Task Force with the assistance of the FBI Dallas Field Office, the FBI Cyber Division, the National Cyber-Forensics & Training Alliance, the FBI Legal Attaché Riga office, and the State Police of Latvia. This case is being prosecuted by Assistant U.S. Attorney D. Ryan Locker.
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Marion County Man Sentenced for Distributing Bombmaking InstructionsRead the Press Release
MARSHALL, Texas – A Jefferson man has been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Beau Daniel Merryman, 21, pleaded guilty on Nov. 4, 2021, to distribution of information relating to explosives and destructive devices and was sentenced to 41 months in federal prison today by U.S. District Judge Rodney Gilstrap.
“Anyone who provides others with the technical know-how to commit acts of violence against innocent people will suffer the wrath of local, state and federal law enforcement,” said U.S. Attorney Brit Featherston. “No stone will be left unturned to catch and prosecute such individuals.”
“The defendant threatened the safety of countless lives by sharing bomb-making information. That information and training could have caused immeasurable harm and damage if it was given to a dangerous individual,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “The FBI and our partners are committed to protecting the communities we serve. We ask the public to remain vigilant and to report suspicious activity to law enforcement.”
According to information presented in court, between September and October 2019, Merryman engaged in a series of online conversations with covert FBI employees. During those conversations, Merryman provided detailed instructions on how to make multiple types of improvised explosive devices (IEDs), such as pipe bombs and pressure-cooker bombs. Merryman explained how to construct the IEDs, select explosives, pack shrapnel for maximum damage, and construct fuses or detonating devices. Merryman also directed that the IEDs be used to target federal law enforcement and critical infrastructure, such as electrical substations.
Merryman was indicted by a federal grand jury on Oct. 16, 2019.
This case was investigated by the Federal Bureau of Investigation Tyler Resident Agency, Bureau of Alcohol Tobacco Firearms and Explosives, Cass County Sheriff’s Office, Atlanta Police Department, and Tyler Police Department. This case was prosecuted by Assistant U.S. Attorneys Frank Coan and Ryan Locker.
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California Man with Ghost Gun Sentenced for Federal Firearms ViolationRead the Press Release
PLANO, Texas – A Pasadena, CA man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Uri Reto Seiser, 37, pleaded guilty on Sep. 3, 2021 to being a felon in possession of ammunition and was sentenced to 46 months in federal prison today by U.S. District Judge Sean D. Jordan. Seiser was ordered not to have any contact with any victim, witness or any other individual associated with this case. Seiser was also prohibited from entering the State of Texas without prior authorization from the U.S. Probation Office.
“Today’s sentencing demonstrates excellent coordination between local and federal law enforcement,” said U.S. Attorney Brit Featherston. “Patrol officers’ actions on the street likely prevented the use of violence against an innocent person. These are the types of actions our law enforcement partners take every day to keep their communities safe, and most of the time these acts go unnoticed.”
According to information presented in court, on Nov. 14, 2020, an officer with the Corinth Police Department stopped a vehicle driven by Seiser. Seiser stated he had just arrived from California to "reconcile" with his girlfriend, who had filed harassment charges on him. Seiser was subsequently arrested for that outstanding harassment warrant. During a search of his vehicle, the officer located a loaded untraceable homemade firearm, commonly known as a “ghost gun” and 49 rounds of 9mm caliber ammunition.
Evidence presented in court showed that Seiser had been threatening his ex-girlfriend for several months after she moved from California to Texas. Seiser admitted that he assembled the weapon fully aware that he was prohibited from possessing a firearm or ammunition because he was a convicted felon. Seiser had previously been convicted of violating a protective order, a felony offense, in Pasadena, CA, on June 20, 2019.
Seiser was indicted by a federal grand jury on Dec. 9, 2020, and charged with a federal firearms violation.
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 Corinth Police Department and prosecuted by Assistant U.S. Attorney Tracey Batson.
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Two Indicted in East Texas Cryptocurrency Money Laundering SchemeRead the Press Release
TYLER, Texas –A 75-year-old woman and a 33-year-old man have been indicted for their roles in a cryptocurrency money laundering scheme in the Eastern District of Texas, announced U.S. Attorney Brit Featherston.
Lois Boyd, of Amelia Court House, VA, and Manik Mehtani, of McLean, VA, were named in an indictment returned by a federal grand jury, charging them with a violation of the Travel Act, money laundering, and money laundering conspiracy.
According to the indictment, Boyd and Mehtani are alleged to have conspired with others to receive victim money derived from a variety of fraud schemes and launder the proceeds through cryptocurrency. The defendants are alleged to have routinely structured deposits in order to avoid transaction reporting requirements and to conceal the nature and source of the criminal proceeds. The defendants allegedly exchanged the criminal proceeds for cryptocurrency and directed the cryptocurrency to wallets under the control of their foreign co-conspirators. In August 2020, the defendants traveled to Longview, Texas, where they attempted to exchange more than $450,000 for Bitcoin. They were temporarily detained and the money was seized. In the course of their operation, Boyd, Mehtani, and their co-conspirators allegedly laundered more than $750,000.00.
If convicted, Boyd and Mehtani face up to 20 years in federal prison. 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. Attorneys Nathaniel C. Kummerfeld and L. Frank Coan, Jr.
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Denton County Man Sentenced to 45 Years in Federal Prison for Child Pornography ViolationsRead the Press Release
PLANO, Texas – A Lewisville man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Aliyah George Simpson, 26, pleaded guilty on June 2, 2021, to five counts of production of child pornography and one count of transportation of child pornography and was sentenced to 540 months in federal prison today by U.S. District Judge Sean D. Jordan.
According to information presented in court, in the fall of 2020, members of HSI and the Flower Mound Police Department were investigating an individual using an online cloud storage service to transport files of child pornography. As part of that investigation, investigators served a search warrant at Simpson's residence, during which they seized several items of digital equipment. Through a forensic investigation, agents located a number of images and videos of a child identified as Victim 1, a minor who had not attained the age of 10-years old. Agents also located messages with other minors in a social media application, in which Simpson induced the teens to engage in sexually explicit conduct, film that conduct, and then send the recordings to him.
As part of his plea agreement, Simpson admitted to abusing Victim 1 on multiple occasions. Specifically, while Victim 1 was sleeping or unconscious, Simpson sexually abused the child and recorded the abuse on cellular telephones that he owned. Simpson has also admitted to persuading, inducing, and enticing two other minors, known as Victim 2 and Victim 3, to film themselves engaged in sexually explicit conduct and to send him the recordings. Simpson was indicted by a federal grand jury on October 15, 2020.
“This office, joined by our local, state and federal law enforcement partners, will always work tirelessly and spare no expense to detect, arrest and prosecute anyone who chooses to harm a child,” said U.S. Attorney Brit Featherston. “In fact, to those who commit these evil acts, you are our priority. We appreciate those dedicated men and women of law enforcement who make it their mission to protect the children of our communities.”
“HSI works relentlessly with our law enforcement partners at all levels to ensure child predators face justice for their unspeakable crimes,” said Christopher Miller, acting Special Agent in Charge HSI Dallas. “This lengthy sentence reaffirms our commitment to protecting the innocence of our most vulnerable from sexual abuse and exploitation.”
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 Flower Mound Police Department and prosecuted by Assistant U.S. Attorney Marisa Miller.
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Houston Men Indicted for Stealing Beaumont MailRead the Press Release
BEAUMONT, Texas – Two Houston men have been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Dontae Dewey McGee, 22, and Tyrin Terelle Robinson, 21, were named in an indictment returned by a federal grand jury on March 2, 2022, charging them with theft of mail, possession of stolen mail, and aiding and abetting. McGee and Robinson made initial appearances today before U.S. Magistrate Judge Zack Hawthorn.
If convicted, McGee and Robinson face up to five years in federal prison.
This case is being investigated by the U.S. Postal Inspection Service and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Jonathan Lee.
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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Camp County Man Guilty of Federal Drug Trafficking and Firearms ViolationsRead the Press Release
TEXARKANA, Texas – A Leesburg man has pleaded guilty to federal drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Nathan Paul Hart, 34, pleaded guilty to conspiracy to possess with intent to distribute a controlled substance and possession of a firearm during a drug trafficking crime today before U.S. Magistrate Judge Caroline Craven.
According to information presented in court, Hart conspired with others to distribute methamphetamine, marijuana, and other drugs in east Texas. On Nov. 30, 2020, Hart was stopped by a Texas State Trooper in east Texas with almost two kilograms of methamphetamine, which had been imported from Mexico. He was also in possession of a pistol. In May 2021, while in jail, Hart directed a shipment of $22,680.00 to another person as payment for drugs from California. Hart was an organizer and leader in the drug trafficking operation, which included five or more participants and was otherwise extensive.
Hart was indicted by a federal grand jury on Aug. 28, 2021. He faces up to life 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 prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being investigated by the Mount Pleasant office of the Texas Department of Public Safety, Criminal Investigation Division with assistance from the U.S. Postal Inspection Service and the U.S. Drug Enforcement Administration. This case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
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Polk County Man Sentenced to Federal Prison Sentence for Drug TraffickingRead the Press Release
BEAUMONT, Texas – A Livingston man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Paul Michael Oliver, 54, pleaded guilty on Aug. 26, 2021 to possession with intent to distribute methamphetamine and was sentenced to 235 months in federal prison by U.S. District Judge Thad Heartfield today.
According to information presented in court, on Nov. 2, 2020, Oliver was arrested at his residence on an outstanding parole violation warrant. During the arrest, Oliver was observed attempting to conceal a clear bag containing a crystal substance in a closet. A laboratory analysis determined that the substance was 684 grams of methamphetamine. A search of the residence also produced drug paraphernalia including scales and multiple clear plastic baggies. Oliver was indicted by a federal grand jury on Feb. 3, 2021.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Polk County Sheriff’s Office and prosecuted by Special Assistant U.S. Attorney Tommy L. Coleman.
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Houston County Man Guilty of Federal Firearms ViolationsRead the Press Release
BEAUMONT, Texas – A Crockett man has pleaded guilty to federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Shapala Butler, 32, pleaded guilty to theft from a federal firearm licensee and being a prohibited person in possession of a firearm today before U.S. District Judge Marcia A. Crone.
According to information presented in court, on Oct. 14, 2020, the Crockett Police Department responded to a burglary at Houston County Pawn, located in Crockett. Upon arrival, officers discovered the front door glass of the business was shattered. The officers searched the woods near the burglary and discovered eight firearms that were stolen from the pawn shop. Law enforcement was able to identify Butler as the perpetrator by using the pawn shop’s surveillance video as well as DNA evidence collected at the scene. Butler was interviewed by a federal agent and confessed to committing the burglary. Butler further confessed to knowing he was a felon at the time of the burglary. Butler had been convicted of burglary of a building on two prior occasions and as a convicted felon is prohibited from owning or possessing firearms or ammunition.
Butler was indicted by a federal grand jury on Dec. 15, 2021. He faces up to 10 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case 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 Crockett Police Department and prosecuted by Assistant U.S. Attorney Donald S. Carter.
Bowie County Man Indicted for Trafficking Deadly FentanylRead the Press Release
TEXARKANA, Texas – A Texarkana man has been indicted for federal drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Darell Montrell Trotter, 32, was named in an indictment returned by a federal grand jury on Feb. 16, 2022, charging him with possessing fentanyl with intent to distribute and possessing a firearm in relation to a drug trafficking crime. Trotter made an initial appearance today before U.S. Magistrate Judge Caroline Craven.
According to the indictment, on Dec. 14, 2021, Trotter possessed more than 400 grams of fentanyl, which he intended to distribute to others. On that same day, Trotter was found in possession of a pistol, a shotgun, and a rifle in furtherance of his drug trafficking.
If convicted, Trotter faces from 15 years to life in federal prison.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is being investigated by the U.S. Drug Enforcement Administration; the Texarkana, Texas Police Department; Texarkana, Arkansas, Police Department; the Texas Department of Public Safety; and the U.S. Postal Inspection Service. This case is being prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
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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Red River County Man Sentenced to Federal Prison for Child Pornography ViolationsRead the Press Release
TEXARKANA, Texas – A Bogata, Texas man has been sentenced to federal prison for child pornography violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
James Thomas Tucker, 36, pleaded guilty on Oct. 20, 2021, to possession of child pornography and was sentenced to 124 months in federal prison today by U.S. District Judge Robert W. Schroeder III.
According to information presented in court, it was discovered that Tucker was using a social media messaging application to distribute images of child pornography. A search of Tucker’s residence revealed evidence that he had been searching for child pornography. Tucker admitted to downloading and distributing images of child pornography in exchange for more images of child pornography. Tucker was charged in a complaint and arrested in May 2020.
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, Bogata Police Department, and Hopkins County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
Jefferson County Man Sentenced to Lengthy Prison Term for Drug TraffickingRead the Press Release
BEAUMONT, Texas – A Port Arthur man has been sentenced to federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Troy Reese, 20, pleaded guilty on May 25, 2021 to conspiracy to possess with intent to distribute methamphetamine and was sentenced to 135 months in federal prison on Feb. 16, 2022, by U.S. District Judge Thad Heartfield.
According to information presented in court, in June and July of 2019, traffic stops revealed a group of individuals out of Port Arthur, including Reese, were conspiring with individuals in Houston to distribute methamphetamine and China White. China White is an extremely dangerous synthetic heroin tainted with chemicals similar to fentanyl. The conspiracy involved using cellular applications such as CashApp to purchase narcotics and stolen or fraudulent credit cards to purchase hotel rooms and other items used in the drug trafficking conspiracy. Reese was indicted by a federal grand jury on June 3, 2020.
The case was investigated by the Drug Enforcement Administration and the Port Arthur Police Department and prosecuted by Assistant U.S. Attorney Rachel Grove.
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Texarkana Men Sentenced for Federal Drug Trafficking and Firearms ViolationsRead the Press Release
TEXARKANA, Texas – A Texarkana father and son have been sentenced to federal prison for drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Kelvin Lorenzo Harris, also known as Fifth Ward, 57, pleaded guilty on Sep. 7, 2021 to conspiring to distribute methamphetamine, using a firearm in relation to a drug trafficking offense and being a felon in possession of a firearm. Harris was sentenced to 180 months in federal prison by U.S. District Judge Robert W. Schroeder, III on Feb. 15, 2022. Markelvin Renard McHenry, also known as Black, 33, pleaded guilty to the same charges on Sep. 1, 2021, and was sentenced to 165 months in federal prison today by Judge Schroeder.
According to information presented in court, Harris and McHenry conspired to sell methamphetamine and a short-barreled shotgun in Texarkana. Specifically, Harris displayed the sawed-off shotgun during a methamphetamine transaction in October 2020. Several weeks later, Harris was arrested on unrelated charges. After his arrest, Harris directed his son, McHenry, to go get the short-barreled shotgun. McHenry then sold methamphetamine and his father's shotgun, disposing of the money from the shotgun as Harris directed. Both Harris and McHenry have been convicted of multiple felonies, including burglary of a habitation, possession of a controlled substance, unlawful possession of a firearm by a felon, and theft of a firearm. As convicted felons, they are prohibited by federal law from owning or possessing firearms or ammunition.
Harris and McHenry were indicted by a federal grand jury on April 22, 2021, and charged with federal drug trafficking and 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 the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Texarkana, Texas Police Department and prosecuted by Assistant U.S. Attorney Jonathan R. Hornok.
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Beaumont Man Pleads Guilty to Armed Robbery of a Convenience StoreRead the Press Release
BEAUMONT, Texas – A Beaumont man has been convicted of federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Kenderious DaShawn Coleman, 20, pleaded guilty to Hobbs Act robbery and brandishing a firearm during a crime of violence today before U.S. Magistrate Judge Christine Stetson.
According to court documents, on September 10, 2021, Coleman committed the armed robbery of a Dollar General store in Beaumont. Coleman was brandishing a firearm inside the store while demanding money from a store clerk. During the robbery, Coleman struck a store employee in the face with the pistol he was carrying, before making off with approximately $1500 from the store safe. Coleman was arrested nearby a short time later with the pistol and stolen money on him.
Coleman was indicted by a federal grand jury on October 6, 2021. He faces up to 20 years in federal prison on the armed robbery charge and an additional 7 years imprisonment for brandishing a firearm during the commission of that crime. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
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Jefferson County Woman Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Beaumont woman has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Amber Dawn LeBlanc, 39, pleaded guilty on October 5, 2021, to possession of a stolen firearm and was sentenced to 120 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on May 18, 2020, law enforcement officers responded to a residential burglary in process in Beaumont. LeBlanc was in the residence when the homeowners came home but fled before police arrived. The homeowners were able to describe LeBlanc to the officers and she was located underneath a house in the neighborhood. The homeowners found a bag left behind by LeBlanc in the residence which included a firearm. The firearm had been reported stolen by an acquaintance of LeBlanc. Further investigation revealed LeBlanc has six prior felonies and is prohibited by federal law from owning or possessing firearms or ammunition.
LeBlanc was indicted by a federal grand jury on October 8, 2020 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 the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Rachel Grove.
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