Eastern District of Texas

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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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:

1. 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

1. Dimas Alfaro-Granado, aka “Toro”

Age: 39

Place of Birth: El Salvador

United States District Court of Prosecution:  Northern District of Georgia

1. Raul Landaverde-Giron, aka “Decente,” aka “Humilde”

Age: 32

Place of Birth:  El Salvador

United States District Court of Prosecution:  District of Maryland

1. Larry Navarete, aka “El Socio”

Age: 41

Place of Birth:  Nicaragua

United States District Court of Prosecution:  Western District of Arkansas

1. Jorge Parada, aka “Rama”

Age: 42

Place of Birth:  El Salvador

United States District Court of Prosecution:  Eastern District of Virginia

1. Hector Ramires, aka “Cuervo”

Age: 28

Place of Birth:  Honduras

United States District Court of Prosecution:  District of Massachusetts

1. 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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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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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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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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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.

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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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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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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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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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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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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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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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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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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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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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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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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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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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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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.

 

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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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.

 

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

Avery L. Mims, 36, pleaded guilty on August 2, 2021, to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime and was sentenced to 84 months in federal prison today by U.S. District Judge Marcia A. Crone.

According to information presented in court, on March 19, 2020, during a search of a vehicle Mims was driving, law enforcement officers located 14 grams of methamphetamine, 7 grams of cocaine, Xanax tablets, marijuana, and ecstasy tablets.  Officers also discovered items indicative of drug trafficking, such as digital scales and approximately $1000 in various small denominations.  Officers also located a firearm in close proximity to the drugs.  After the March 19, 2020, encounter, a federal indictment and arrest warrant was issued for Mims.  When the arrest warrant was executed, Mims was found in possession of a backpack containing approximately 60 grams of methamphetamine, crack cocaine, various tablets, and a firearm. 

Mims was indicted by a federal grand jury on February 3, 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 Beaumont Police Department and prosecuted by Assistant U.S. Attorney Russell James.

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BEAUMONT, Texas – A Beaumont man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Tywayne Marquis Parker, 26, pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime today before U.S. District Judge Marcia Crone.

According to information presented in court, on June 21, 2021, Parker was stopped in Beaumont for a traffic violation.  A search of the vehicle revealed a firearm on the driver’s floorboard, and approximately 100 grams of pills containing methamphetamine.  Officers also found a large amount of cash in varying denominations and other evidence of drug trafficking.

Parker was indicted by a federal grand jury on October 6, 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 is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Russell James.

 

BEAUMONT, Texas – A federal grand jury in the Eastern District of Texas has returned an indictment charging seven individuals with various federal violations related to a complex international drug trafficking conspiracy, announced U.S. Attorney, Brit Featherston today.

Alberto Garcia Bonilla, 52, Yimminson Caicedo Diaz, 27, Edwin Jose Pereira Arroyo, 26, Jaime Vivanco Cuellar, 39, Carlos Vicente Guagua Vasquez, 20, John Jairo Morales Parraga, 23, and Jonny Javier Cuero Sinisterra, 43, of Colombia & Ecuador; were named in an indictment charging them with conspiracy to possess with the intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States. The indictment details approximately $60 million in alleged criminal activity since 2021. The one-count indictment was returned by a federal grand jury earlier this week.

According to the indictment and other court documents, on December 26, 2021, two vessels containing cocaine were reported by the Colombian National Police as having departed Tumaco, Colombia. On December 27, 2021, the El Salvadoran Navy interdicted both vessels and seized a combined 4,186 kilograms of cocaine.

If convicted, the defendants face a minimum of ten years and up to life in federal prison, a fine of up to $10 million, and forfeiture of $60,152,300.00 in U.S. currency.

This case is being investigated by the Galveston Division of the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Christopher Rapp.

An indictment is not evidence of guilt.

All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

BEAUMONT, Texas – A federal grand jury in Beaumont has returned a three-count indictment charging a Florida resident, along with nine other individuals, in a drug trafficking conspiracy in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

The indictment charges Adam P. Runsdorf, 56, of Boca Raton, Florida, with conspiracy, trafficking in drugs with a counterfeit mark, and money laundering conspiracy. According to the indictment, Runsdorf is the owner and president of Woodfield Pharmaceutical LLC, a pharmaceutical business based in Boca Raton, Florida, with a manufacturing facility in Houston, Texas.

Runsdorf was arrested in Boca Raton on Jan. 14, 2022, pursuant to a criminal complaint alleging the same charges.  Runsdorf joins nine other defendants in an existing indictment that was returned on Nov. 3, 2021.  

The nine Texas individuals who have already been arrested on the indictment are:

• Tunji Campbell, a/k/a Mike, 43, of Webster;
• Byron A. Marshall, a/k/a Robert Griffin, a/k/a Dr. Griffin, 43, of Houston;
• Cheryl A. Anderson, 43, of League City;
• Ashley A. Rhea, a/k/a Ashley A. Johnson, 35, of Houston;
• Chauntell D. Brown, a/k/a Juan Brown, 49, of Manvel;
• Willis Reed, 60, of Richmond;
• Kalpen D. Patel, 36, of Richmond;
• Jonathan R. Shaver, 35, of Richmond; and
• Gina Acosta, 40, of Fresno.

According to the indictment, from April 2014 until August 2021, the defendants conspired to traffic misbranded and counterfeit drugs, specifically promethazine-codeine cough syrup.  The indictment alleges the conspiracy resulted in approximately $52,736,000 in drug trafficking proceeds.    

If convicted, the defendants face up to 20 years in federal prison.

This case is being investigated by the Drug Enforcement Administration, U.S. Food and Drug Administration Office of Criminal Investigations, Federal Bureau of Investigation, U.S. Marshals Service, Houston Police Department, Galveston Police Department, Galveston County Sheriff’s Office, Dickinson Police Department, League City Police Department, Pearland Police Department, Pasadena Police Department, Texas City Police Department, Harris County Precinct #2, Brazoria County Sheriff’s Office, Fort Bend County Sheriff’s Office, Liberty County Sheriff’s Office, and the Texas National Guard.  This case is being prosecuted by Assistant U.S. Attorneys John B. Ross and Jonathan C. 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.

TYLER, Texas – A federal grand jury has returned a 33-count indictment charging a Tyler man for fraud schemes in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today. 

Derek Robert Hamm, 38, was named in an indictment returned by a federal grand jury in Tyler charging him with wire fraud, money laundering, violations of the Stolen Valor Act, using a fraudulent military discharge certificate, and being a felon in possession of firearms and ammunition.  The Stolen Valor Act of 2013 makes it illegal to fraudulently wear medals, embellish rank, or make false claims of military service to obtain money, employment, property, or some other tangible benefit.

According to the indictment, Hamm held himself out to be a former member of the Army Special Forces who had served multiple tours of duty in Iraq, Afghanistan, and other countries.  He claimed to have been awarded a Purple Heart, a Silver Star, and a Bronze Star for his service.  In reality, Hamm received none of those awards.  Hamm also falsely claimed to be related to Harold Hamm, the billionaire oilman in Oklahoma, which he claimed gave him access to financial resources and oil industry expertise.

The indictment alleges that Hamm’s persona of being a wealthy war hero helped him create an extensive network of friends who introduced him to potential investors. Hamm then defrauded those investors in schemes related to the oil and gas drilling industry.  Hamm did not invest funds as promised.  Instead, once Hamm received investors’ funds, he spent the money on lavish personal gifts, including nearly $500,000 on jewelry and vehicles for himself and his family. 

The indictment also alleges that Hamm was a prohibited person in possession of firearms and ammunition.  Hamm was convicted in Smith County in 2020 for theft of property, a state felony.  As a felon, Hamm is prohibited by federal law from owning or possessing firearms or ammunition. Hamm was also convicted in 2005 for assault of a family member, a domestic violence misdemeanor under state law.  According to federal law, Hamm is also prohibited from possessing firearms or ammunition due to his domestic violence conviction.

If convicted, Hamm faces up to twenty years in federal prison.

If you or someone you know has been a victim of Derek Robert Hamm, please contact the Federal Bureau of Investigation at 903-594-3503.  Derek Robert Hamm is also known as D. Wayne Hamm II, Wayne Hamm, D. Wayne H., DW Hamm, and RD Hamm.

This case was prosecuted as part of the Project Safe Neighborhoods Initiative.  Project Safe Neighborhoods is aimed at reducing gun and gang violence; deterring illegal possession of guns, ammunition, and body armor; and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state, and local law enforcement agencies.

This case is being investigated by the Federal Bureau of Investigation’s Tyler Field Office, with assistance from the Tyler Police Department, the Smith County Sheriff’s Office, the Phoenix Arizona Police Department, Smith County Adult Probation, the Texas Railroad Commission-Enforcement Division, Department of Veteran’s Affairs-Office of Inspector General, Texas Comptroller of Public Accounts-Criminal Investigation Division, and the United States Special Operations Command. This case is being prosecuted by Assistant U.S. Attorneys Robert Austin Wells and 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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SHERMAN, Texas – Seven Texas doctors and a hospital executive have agreed to pay a total of $1,106,449 to resolve False Claims Act allegations involving illegal remuneration 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.

“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. “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.”   

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 resolves allegations that seven Texas doctors received thousands of dollars in illegal 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 Boston Heart Diagnostics Corporation (Boston Heart). Little River allegedly funded the illegal remuneration to the 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. 

• Jaspaul Bhangoo, M.D., of Denton, Texas, agreed to pay $125,625 to settle allegations that (a) True Health paid him kickbacks from January 1, 2015 to December 1, 2015; and (b) True Health referred him to an MSO, established by Little River marketers, which paid him MSO kickbacks from June 14, 2016 to September 16, 2016.

• Robert Megna, D.O., of Ferris, Texas, agreed to pay $232,000 to settle allegations that from February 2, 2016 to December 31, 2017 he received kickbacks from (a) one MSO, Ascend MSO of TX, LLC, in exchange for ordering Boston Heart laboratory tests from Little River; and (b) another MSO, Geminorium MG LLC, in exchange for ordering laboratory tests from Boston Heart.

• Baxter Montgomery, M.D., of Houston, Texas, and his professional association B-Saz, P.A., agreed to pay $60,000 to settle allegations that from December 29, 2015 to February 3, 2018 he received kickbacks from (a) one MSO, Ascend MSO of TX, LLC, in exchange for ordering True Health laboratory tests from Little River; and (b) another MSO, Indus MG LLC, in exchange for ordering laboratory tests from True Health.

• Murtaza Mussaji, D.O., of Houston, Texas, agreed to pay $215,000 to settle allegations that from August 7, 2015 to November 14, 2017 he received kickbacks from (a) one MSO, SYNRG Partners LLC, in exchange for ordering True Health laboratory tests from Little River; and (b) another MSO, Catalyst Health Partners LP, in exchange for ordering laboratory tests from True Health.

• David Sneed, D.O., of Austin, Texas, agreed to pay $200,000 to settle allegations that from September 30, 2015 to December 23, 2016 he received kickbacks from an MSO, Alpha Rise Health LLC, in exchange for ordering True Health and Boston Heart laboratory tests from Little River.

• Kevin Lewis, D.O. of Houston, Texas, agreed to pay $57,324 to settle allegations that from June 24, 2015 to April 20, 2016, he received kickbacks from an MSO, Alpha Rise Health, LLC, in exchange for ordering Little River and Boston Heart laboratory tests.

• Angela Mosley-Nunnery, M.D. of Kingwood, Texas, agreed to pay $166,500 to settle allegations that from April 12, 2016 to June 14, 2018 she received kickbacks from one MSO, North Houston MSO Group, Inc. and another MSO, Tomball Medical Management, in exchange for ordering laboratory tests from Little River and True Health.

As part of their settlements, the 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 Richard DeFoore of Anson, Texas, the former Chief Executive Officer of Jones County Regional Healthcare d/b/a Stamford Memorial Hospital (Stamford), which was a small hospital in Stamford, Texas.  In late 2015 and early 2016, DeFoore allegedly was approached by representatives of True Health and a partner company, who proposed an arrangement by which Stamford could profit by billing for diagnostic laboratory tests.  Under the arrangement, which expanded to include Boston Heart tests, Stamford allegedly coordinated with True Health and Boston Heart representatives and paid volume-based commissions to independent contractor recruiters, who used MSOs to make payments to doctors that were disguised as investment returns but in fact were based on, and offered in exchange for, the doctors’ referrals.  Pursuant to the alleged arrangement, Stamford billed the resulting claims to commercial insurers and True Health and Boston Heart billed the resulting claims to Medicare and other federal healthcare programs.  Under the terms of the settlement agreement, DeFoore agreed to pay $50,000, to cooperate with the Department’s investigations of and litigation against other parties, and to be excluded from participation in federal healthcare programs for three years.

“Medical professionals who seek to enrich themselves through kickback schemes undermine federal health care programs and increase 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. “This settlement demonstrates our commitment to working with our state and federal law enforcement partners to investigate such allegations of fraud.”

“As the investigative arm of the Department of Defense's Office of Inspector General (DoD IG), one of the primary missions of the Defense Criminal Investigative Service (DCIS) is to safeguard the military's valuable health care system commonly known as Tricare," said Acting Special Agent in Charge Gregory P. Shilling of the DCIS Southwest Field Office.  "DCIS will continue to aggressively investigate allegations of kickbacks that undermine the integrity of Tricare and the health care provided to our service members, retirees and their families."

“The Stark Law and the Anti-Kickback Statute are designed to protect the integrity of federal healthcare programs,” 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 is pleased to have been able play a role in this case and work with the U.S Attorney’s office to hold accountable those who seek to defraud taxpayer-funded healthcare programs.”

“We are grateful for the efforts of the U.S. Attorney’s Office, the Health and Human Services Office of the Inspector General, and the Defense Criminal Investigative Service. The service members and families that have and continue to serve our Nation depend on the integrity of the healthcare system,” said Lt. Gen. Ronald Place, Director of the Defense Health Agency. “By rooting out instances where that integrity is threatened, we honor that service.”

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 more than $27.76 million relating to conduct involving Boston Heart, True Health, and Little River, including False Claims Act settlements with Boston Heart for $26.67 million in November 2019 and with Dr. Bibi Tasleyma Sattar and Oakmont Wellness Center, PA for $210,000 in July 2020. This matter and the related matters were handled by Assistant U.S. Attorneys James Gillingham, Adrian Garcia, and Betty Young and Senior Trial Counsel Christopher Terranova.

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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BEAUMONT, Texas – A Honduran national residing in Port Arthur has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today. 

Santos Orellana-Hernandez, 47, pleaded guilty on July 23, 2021, to use of interstate commerce facilities in the commission of murder-for-hire, tampering with a witness by intimidation and threats, and conspiracy to commit witness tampering.  Orellana-Hernandez was sentenced to 100 months in federal prison today by U.S. District Judge Thad Heartfield.

According to information presented in court, from January to March of 2020, Orellana-Hernandez, residing in Port Arthur, Texas, solicited the murder of two extended family members residing in Honduras.  Specifically, Orellana-Hernandez solicited Gustavo Ramires, a person located in Honduras, to kill Orellana-Hernandez’s mother-in-law, G.V., and brother-in-law, J.A.V.  The purpose of the intended murders was revenge against Orellana-Hernandez’s soon-to-be ex-wife, who was seeking a divorce from Orellana-Hernandez in Jefferson County, Texas.  Orellana-Hernandez reportedly told E.A.V. that he would make her “cry tears of blood.”

Orellana-Hernandez offered to pay Ramires $200,000 in Honduran Lempira (approximately $8,000 in U.S. dollars) upon proof that Ramires had killed G.V., J.A.V., and two other individuals. Orellana-Hernandez directed Ramires to perform the killings on or after April 21, 2020, the date when the divorce was to become final.  Ramires was additionally instructed to provide photographic proof of the killings before he would receive payment.  Ramires later placed a recorded telephone call to Orellana-Hernandez, in which the two discussed the murder-for-hire plot, using code language such as “planting the corn,” to refer to the killings.  Ramires later told investigators that “planting the corn” meant burying victims’ bodies.

Orellana-Hernandez was indicted by a federal grand jury on May 20, 2020 and taken into federal custody.  In early June, while he was jailed, Orellana-Hernandez conspired with his brother to intimidate E.A.V. in an attempt to make her “withdraw” the murder-for-hire accusation. On November 4, 2020, the grand jury returned a superseding indictment that added the witness tampering charges. 

“This case exemplifies excellent local and federal law enforcement cooperation, and the FBI collaborated with our international partners in Honduras to successfully stop a senseless act of violence by Orellana-Hernandez,” said U.S. Attorney Brit Featherston.  “The Port Arthur Police Department and the FBI did an excellent job!  Crimes of violence, here or abroad, will not be tolerated and all the tools of law enforcement will be utilized to stop violent crime and prosecute the perpetrators to the fullest extent of the law.”

This case was investigated by the Federal Bureau of Investigation and the Port Arthur Police Department and prosecuted by Assistant U.S. Attorney John B. Ross and Special Assistant U.S. Attorney Sean C. Day.

BEAUMONT, Texas – Two Jake’s Fireworks defendants, including the owner of the Nederland business, have pleaded guilty to federal drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Jake Ellis Daughtry, 35, of Nederland, pleaded guilty to conspiracy to possess with intent to distribute a date rape drug over the internet to an unauthorized purchaser. Kip William Daughtry, 48, of Vidor, pleaded guilty to possession with intent to distribute a controlled substance analogue.

According to information presented in court, Jake Daughtry and Kip Daughtry are the leaders of a Chemical Trafficking Organization (“CTO”) cell operating on a national scale.  Investigation of the organization began in 2018 when DEA West Palm Beach, Florida intercepted mail parcels of a chemical identified as 1,4 butanediol, commonly referred to as “BDO.”  BDO is a chemical manufactured only for industrial or laboratory use as a floor stripper or vehicle wheel cleaner and is not intended for human consumption.  Investigators determined that when BDO is ingested, it immediately metabolizes into GHB (a known date-rape drug) with the same effects, causing potential overdoses, addiction, and death.

DEA traced the seized parcels to their origination point, Right Price Chemicals, a business located on Twin City Highway in Nederland, Texas, and owned by Jake Daughtry.  A seasonal fireworks business called “Jake’s Fireworks” is also operated at that location.  Customers from all over the United States were able to order quantities of BDO from the Right Price Chemicals website in small amounts to use for personal consumption. The Daughtry’s continued to sell BDO even after becoming aware that some customers were ingesting the substance for its’ narcotic effect, rather than using it for its intended commercial purpose.  Agents determined that since 2016, Right Price Chemicals has distributed approximately 7,000 gallons of BDO over thousands of orders, and that those sales generated $4.5 million.

The defendants were indicted by a federal grand jury on June 3, 2020 and face 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.

In addition, Jake Daughtry, Joe Daughtry, Sandra Daughtry, and Kip Daughtry agreed to the entry of a permanent injunction that prohibits them, or Right Price Chemicals, to ever sell or distribute BDO to anyone, anywhere, at any point in the future.

“After being notified by Florida law enforcement that this dangerous and lethal chemical was being sold to users for a nefarious purpose, East Texas law enforcement agencies took action to protect the public and prevent others from falling prey to the sale and use of this dangerous substance,” said U.S. Attorney Brit Featherston.  “This was a complicated investigation involving numerous investigative agencies and both the criminal and civil divisions of the U.S. Attorney’s Office.  Their collaborative efforts have made our community and country a safer place to live.”

This 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 Drug Enforcement Administration West Palm Beach, Florida, and Beaumont; U.S. Postal Service; Internal Revenue Service-Criminal Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Jefferson County Sheriff's Office.  Essential support and coordination was provided by numerous components of DEA headquarters and the Department of Justice’s multi-agency Special Operations Division (SOD).  This case is being prosecuted by Assistant U.S. Attorneys Christopher Rapp, Donald Carter and Robert Wells.

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PLANO, Texas – An Arthur City, Texas, man has been convicted of federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Steven Dewayne Wilson, 57, was found guilty by a jury of being a felon in possession of a firearm following a one-week trial before U.S. District Judge Sean Jordan. 

According to information presented in court, on March 8, 2017, members of the Lamar County Sheriff's Office responded to a call for service in Arthur City, where it was reported that gunshots had been fired near a residence.  It was also reported that the shooter had assaulted another person by striking them in the head with the barrel of a firearm.  Upon arrival, law enforcement officers made contact with the reporting parties and searched for Wilson, who was identified as the shooter and lived in a nearby camper.  Unable to locate him, the officers left the scene, but they were called back early the next morning with reports that Wilson had returned.  Upon contact with Wilson, deputies noticed spent shell casings scattered in front of his camper.  Wilson denied possessing any firearms.  A search warrant was eventually obtained for Wilson's camper and vehicles.  During the search of Wilson's truck, officers found a rifle shoved under the backseat of the cab, and a plastic baggie of ammunition stuffed under the driver’s seat.  Wilson, a convicted felon, was arrested for felon in possession of a firearm.  During a subsequent interview, Wilson admitted to possessing the firearm, placing it in his truck, and firing it a few days prior.  However, at trial, Wilson testified that an acquaintance named “James” actually brought the firearm to Wilson’s residence and that Wilson had never actually handled the firearm.  Wilson was not able to provide further details as to whereabouts of “James” or any contact information for “James.” 

Wilson was indicted by a federal grand jury on August 14, 2019.  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 Lamar County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys Wes Wynne and Lesley Brooks. 

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SHERMAN, Texas – A Plano man has been sentenced to 25 years in federal prison for drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Nathaniel Edward Gonzalez, 36, pleaded guilty on March 16, 2021 to possession with intent to distribute heroin resulting in death and was sentenced to 300 months in federal prison on Jan. 6, 2022, by U.S. District Judge Amos L. Mazzant.

According to information presented in court, on Jan. 16, 2019, Gonzalez distributed heroin to an individual at his place of business in Plano.  That individual was found deceased by his coworkers with the needle still in his arm.  An investigation led officers to Gonzalez, who had previously been convicted of the same conduct in 2005 when he provided heroin to a 16-year-old resulting in an overdose death.  Gonzalez was indicted by a federal grand jury on Feb. 7, 2019.

"Illegal drugs continue to damage our communities," said U.S. Attorney Brit Featherston.  "We will use all our tools to arrest and prosecute those who choose to harm others by peddling their dangerous poisons."

The case was investigated by the Plano Police Department Narcotics Unit and prosecuted by Assistant U.S. Attorney Tracey Batson.

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BEAUMONT, Texas – A Lufkin man has been sentenced to federal prison for federal child pornography violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Colby Allen, 20, pleaded guilty on August 11, 2021, to distributing child pornography and was sentenced to 162 months in federal prison by U.S. District Judge Thad Heartfield on Jan. 6, 2022.

According to information presented in court, on Feb. 20, 2020, an undercover law enforcement officer accessed an instant messaging chat group known to have users who posted images and videos of child pornography. The officer observed that a particular user posted two videos to the group, including a video depicting the sexual abuse of a minor. Further investigation revealed that the user of the messenger account was Allen.  On Nov. 19, 2020, law enforcement officers executed search warrants at Allen’s residences in Lufkin and Beaumont. During the search of Allen’s Beaumont residence, officers seized his cellular telephone, which was later forensically imaged. A review of the forensic imaging revealed numerous video and image files depicting child pornography. The images and videos located on Allen’s phone included the two videos uploaded to the instant messaging group on Feb. 20, 2020.  A federal grand jury returned an indictment charging Allen with federal violations on Jan. 20, 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 the Federal Bureau of Investigation, Lufkin and Beaumont offices; the Texas Department of Public Safety; the Lufkin Police Department; and the Lamar University Police Department.  This case was prosecuted by Assistant U.S. Attorney Lauren Gaston.

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

Shalom Olumide Ayotunde, 39, pleaded guilty on July 1, 2021, to passport fraud, false claim to U.S. citizenship, wire fraud, and false statement to a financial institution, and was sentenced to 46 months in federal prison today by U.S. District Judge Amos L. Mazzant, III.  Ayotunde was also ordered to pay restitution in the amount of $1,067,000.

According to court documents, in June 2018, Ayotunde provided false identifying information in his application for a U.S. passport, and in doing so, also falsely claimed to be a U.S. citizen.  Ayotunde was also involved in falsifying information in connection with numerous applications for Payment Protection Program loans, and ultimately received more than $1 million in fraudulent PPP loan proceeds. Additionally, evidence showed that Ayotunde was part of a conspiracy to defraud companies through business email compromise schemes and acted as a money mule when he knowingly received and transferred proceeds of fraudulent activity. Evidence showed that Ayotunde received or attempted to receive more than $800,000 in stolen funds.  A federal grand jury returned an indictment charging Ayotunde with federal violations on Nov. 13, 2020.

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.

 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 U.S. Department of State- Diplomatic Security Service and the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Camelia Lopez.

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

Clay Melton Denton, 57, was found guilty on June 11, 2021, of distribution, receipt and possession of child pornography and was sentenced to 20 years in federal prison today by U.S. District Judge Amos L. Mazzant, III.  Denton was also ordered to pay an assessment of $10,000 under the Amy, Vicky, and Andy Victim Assistance Act of 2018.

According to the court documents and testimony at trial, in January and March 2018, undercover officers with the Plano Police Department and the Garland Police Department received child pornography, via an online platform, that had been distributed to them by a computer user.  The officers traced the online conduct to the Denton residence in Allen, Texas.  Members of the FBI obtained a search warrant for the residence, which they served on April 25, 2018.  The searching team discovered multiple digital devices in the residence, including server racks, network area storage devices, laptops, hard drives, cellular phones, and digital storage media. Agents testified that the entire second story of the house was filled with floor-to-ceiling book cases storing digital devices, manuals, and peripherals.  Additional testimony revealed that forensic analysis of the seized devices took almost one year.  During this forensic analysis, personnel discovered tens of thousands of images and videos of child pornography.  Specifically, evidence demonstrated that a laptop belonging to Denton and located on one of his desks contained the same software used to distribute child pornography to the undercover officers.  That software was also used to obtain child pornography, which was saved on a different portion of Denton’s computer.  Evidence also revealed that child pornography was located on a 60+ terabyte storage device that Denton owned and possessed.  A federal grand jury returned an indictment charging Denton with federal violations on Sep. 11, 2019.

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 Plano Police Department, Garland Police Department and the FBI Dallas Child Exploitation Task Force and prosecuted by Assistant U.S. Attorneys Marisa Miller and Maureen Smith.

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BEAUMONT, Texas – A Houston man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Gary Dwon Gaffney, 36, pleaded guilty to making false statements to federal agents today before U.S. District Judge Marcia Crone.

According to information presented in court, on August 21, 2021, Gaffney was arrested on an unrelated warrant for a theft charge and was booked into the Liberty County Jail.  While in custody, Gaffney requested to speak to officers in reference to having knowledge about a plot to bomb the Mickey Leland Federal Building in Houston.  Gaffney named two individuals and claimed they had already acquired fertilizer and detonation devices to execute the bombing.  As a result of Gaffney’s false statements, an extensive federal investigation was launched.  Agents were not able to find any evidence to confirm Gaffney’s claims and he eventually admitted to making the fraudulent statements.

Gaffney was indicted by a federal grand jury on Nov. 3, 2021.  He 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.

This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Rachel Grove.

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

Moses Ray Rhine, Jr., 21, pleaded guilty on Aug. 11, 2021, to Hobbs Act robbery and brandishing a firearm during a crime of violence and was sentenced to 180 months in federal prison today by U.S. District Judge Marcia Crone.

According to court documents, from Jan. 11, 2021 through Jan. 21, 2021, Rhine and others conspired to commit armed robberies of at least five convenience stores located in Southeast Texas.  The stores were all engaged in interstate commerce that employed clerks who were engaged in the commercial activities of the stores at the time of the robberies.  Each store was equipped with functioning surveillance cameras that recorded the robberies.  Local and federal agents interviewed Rhine and he confessed to his role in the robberies.  The Hobbs Act prohibits actual or attempted robbery affecting interstate commerce.

Rhine was indicted by a federal grand jury on June 2, 2021.  

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 John B. Ross.

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BEAUMONT, Texas – A Beaumont man has been sentenced to prison for a federal firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Darrell Jordan, 23, pleaded guilty on July 12, 2021, to being a prohibited person in possession of a firearm and was sentenced to 71 months in federal prison today by U.S. District Judge Thad Heartfield.

According to court documents, on June 4, 2020, Beaumont police responded to a call in reference to an assault at a local hotel.  Officers were shown photos of the victim in the hotel parking lot near a maroon Escalade.  Officers located the vehicle in the parking lot of the Executive Inn Hotel in Beaumont and knocked on the nearest hotel room door where the vehicle was parked and Jordan answered.  While interviewing the other occupants of the room, police observed a revolver in plain view.  Jordan told police he was a convicted felon and was taken into custody.  Detectives also found two additional firearms in the room near Jordan’s shoes.  As a convicted felon, Jordan is prohibited from owning or possessing firearms or ammunition.    Jordan was indicted by a federal grand jury on March 3, 2021, 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 Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Rachel Grove.

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TEXARKANA, Texas – A Coronado, California, man has been found guilty of federal violations related to a health care kickback scheme in the Eastern District of Texas, announced U.S. attorney Brit Featherston today.

Vincent Marchetti, Jr., 57, was found guilty by a jury following a month-long trial before U.S. District Judge Robert W. Schroeder, III.

“Fraud on our health care system cost taxpayers millions of dollars,” said U.S. Attorney Brit Featherston.  “The defendant convicted today, and the others prosecuted in this large conspiracy, will suffer their fate at the hands of our excellent justice system.  All should know that an investigation and prosecution such as this takes thousands of hours of work by law enforcement and prosecutors.  My hat goes off to them for their excellent work to protect the citizens of our communities.”

“Kickback schemes victimize patients seeking legitimate care and line the pockets of criminals who pay or receive them,” said Miranda L. Bennett, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General, Dallas Region.  “We will continue working with our law enforcement partners to protect the integrity of federal health care programs by exposing these harmful schemes and holding fraudsters accountable.”

“The defendant intentionally deceived the health care system to receive unlawful benefits and payments. Health care fraud causes billions of dollars in damages a year and affects patients by raising their premiums and taxes,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “The FBI will continue working alongside our public and private sector partners to pursue individuals who attempt to profit off of patients and insurance holders.”

“Those involved in kickback schemes and fraudulent business enterprises will eventually face justice no matter where they operate,” said Christopher Miller, acting Special Agent in Charge, HSI Dallas.  “We remain relentless in our pursuit of those who violate the law through fraudulent practices for personal gain.”

According to information presented in court, Marchetti conspired with others to pay and receive kickbacks in exchange for the referral of, and arranging for, health care business, specifically pharmacogenetic (PGx) tests.  Pharmacogenetic testing, also known as pharmacogenomic testing, is a type of genetic testing that identifies genetic variations that affect how an individual patient metabolizes certain drugs.  The illegal arrangement concerned the referral of PGx tests to clinical laboratories in Fountain Valley, California; Irvine, California; and San Diego, California.  More than $28 million in illegal kickback payments were exchanged by those involved in the conspiracy.

In December 2019, twelve individuals from three states were charged for their roles in the kickback conspiracy.  A federal grand jury in the Eastern District of Texas returned an indictment against Philip Lamb, 46, of Scottsdale, Arizona; Nicolas Arroyo, 40, of Tempe, Arizona; Vincent Marchetti, Jr.; William Flowers, 56, of Houston; Steven Donofrio; James J. Walker, Jr. a/k/a Jimmy Walker, 47, of Frisco; Timothy Armstrong, 64, of Frisco; Virginia Blake Herrin, 56, of Frisco; Patrick Ridgeway, 52, of Jackson, Mississippi; Chismere Mallard, 41, of McAllen; Dr. Ray W. Ng; and Ashley Kretzschmar, 36, of Aledo; for conspiring to commit illegal remunerations in violation of the Anti-Kickback Statute.

Philip Lamb, Nicolas Arroyo, Jimmy Walker, Virginia Blake Herrin, Patrick Ridgeway, Chismere Mallard, and Ashley Kretzschmar pleaded guilty prior to trial.

Kimberly Willette, 59, of Friendswood, and Edwin Chad Isbell, 48, of McKinney, also pleaded guilty to related charges.

The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remunerations in exchange for the referral of or arranging for or recommending the ordering of items or services payable under federal health care programs.  Under federal statutes, violations of the Anti-Kickback statute are punishable by up to five years in federal prison.

This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, the FBI Dallas – Frisco Resident Agency, and the U.S. Department of Homeland Security, Homeland Security Investigations.  It was prosecuted by Assistant U.S. Attorneys Nathaniel C. Kummerfeld, Lucas Machicek, Adrian Garcia, Brent Andrus, and L. Frank Coan, Jr., with assistance from Assistant U.S. Attorney Stephan E. Oestreicher, Jr., and Special Assistant U.S. Attorney Laurel E.P. Simmons.

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BEAUMONT, Texas – A Lumberton man has pleaded guilty to federal child pornography violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.

Stephen John Pieper, 23, pleaded guilty to three counts of production of child pornography today before U.S. District Judge Marcia A. Crone.

According to court documents, an investigation into claims that Pieper had sexually exploited teen girls revealed Pieper had engaged in sexual activity with three victims, aged 15 and 16-years old.  As part of the sexual contact with the victims, Pieper used his own cellular phone to record the minors engaged in sexually explicit conduct.  Pieper admitted to uploading the videos and images he captured of the victims into Snapchat accounts.  Pieper’s exploitation of the three victims spanned 2016 through 2018, during which time Pieper was an adult who was more than 5 years older than his victims.

Pieper was indicted by a federal grand jury on April 7, 2021.  He faces a minimum of 15 years and 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 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 Homeland Security Investigations and the Texas Attorney General’s Office and prosecuted by Assistant U.S. Attorney Rachel Grove.

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BEAUMONT, Texas — The Department of Justice, FBI, U.S. Postal Inspection Service and five other federal law enforcement agencies announced the completion of the fourth annual Money Mule Initiative, which targeted networks of individuals through which international fraudsters obtain proceeds of fraud schemes. These individuals, sometimes referred to as money mules, receive money from fraud victims and forward the illicit funds, often to overseas perpetrators. 

By receiving and transferring illicit funds, money mules facilitate a wide range of fraud schemes, including those that often predominately impact older Americans — like romance scams and lottery fraud — and those that target companies through business e-mail compromise schemes. Money mules also assist the theft of funds earmarked for pandemic relief, including unemployment insurance and small business loan funds. Some money mules are aware that their actions facilitate international fraud schemes. Others, however, first interact with fraud schemes as victims and may be unaware that their actions are furthering criminal activity.         

U.S. law enforcement took action to address 4,750 money mules over the last 10 weeks; enforcement actions occurred in every state in the country. These actions more than doubled the number of actions taken during last year’s effort. Agencies are also conducting outreach to educate the public about how fraudsters use money mules and how to avoid unknowingly assisting fraud by receiving and transferring money.

“Without money mules, many foreign fraudsters targeting American consumers, businesses and pandemic relief funds could not reap the proceeds of their schemes,” said Associate Attorney General Vanita Gupta. “The department and its partners will use every tool at our disposal — consumer education, disruption and prosecution — to cripple foreign fraudsters’ ability to get money from victims’ pockets to perpetrators’ bank accounts.”

Law Enforcement Actions

The department’s Consumer Protection Branch and the FBI led the initiative with the U.S. Postal Inspection Service. Other participating agencies were the Department of Labor Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Small Business Administration Office of Inspector General, U.S. Secret Service and U.S. Treasury Inspector General for Tax Administration. The campaign was conducted simultaneously with a Europol initiative, the European Money Mule Action (EMMA). Additionally, in several districts, including the District of Arizona and the Northern District of Georgia, federal law enforcement have been working closely with their state and local law enforcement counterparts.

“This year’s Money Mule Initiative successfully halted the activity of hundreds of money mules worldwide thanks to the persistence and partnership of the FBI and our federal, state, local and international partners,” said Executive Assistant Director Brian Turner of the FBI's Criminal, Cyber, Response and Services Branch. “Money mules make it easier for criminals to hide their activity, and harder for law enforcement to follow their tracks. Today’s announcement is an unmistakable warning for those who move money for criminal enterprises: even if you don’t know you’re committing a crime, acting as a money mule is illegal and punishable, and the FBI and our partners will use all available tools to disrupt the flow of funds to criminal networks.”

“The U.S. Postal Inspection Service takes great pride in our history of protecting the public from being deceived by scammers,” said Chief Postal Inspector Gary Barksdale for the U.S. Postal Inspection Service. “We work hard to safeguard vulnerable consumers through aggressive criminal investigations, as well as proactive consumer outreach, as part of our mission to protect those who might fall victim to cleverly designed deceptive offers. The Money Mule Initiative is another example of our law enforcement commitment, and that of our law enforcement partners, to vigorously pursue individuals who knowingly or unknowingly participate in criminal activity of this nature; bring them to justice and stop them in their tracks from victimizing the American public.”

The thousands of actions taken by law enforcement ranged from warning letters to civil and administrative actions, to criminal prosecutions. Law enforcement served approximately 4,670 letters warning individuals that their actions were facilitating fraud schemes. These letters outlined the potential consequences for transferring money acquired illegally. Civil or administrative actions were filed against 11 individuals, and through seizures and voluntary return of funds, law enforcement obtained nearly $3.7 million in fraud proceeds.

Additionally, more than 30 individuals were criminally charged for their roles in receiving and forwarding victim payments or otherwise laundering fraud proceeds. These cases included:

• The U.S. Attorney’s Office for the Eastern District of Texas obtained a guilty plea by an individual who defrauded elder persons by posing as a special agent with the Social Security Administration, and another guilty plea by an individual who used fake identities to open bank accounts to facilitate the movement of fraud proceeds.
• The Consumer Protection Branch and U.S. Attorney’s Office for the Central District of California charged four individuals who laundered gift cards purchased by fraud victims.
• Two U.S. Attorney’s Offices, the District of Rhode Island and the Western District of Pennsylvania, indicted individuals who, among other conduct, personally collected money from grandparent scam victims.
• The U.S. Attorney’s Office for the Western District of Tennessee charged an individual who facilitated the theft of unemployment insurance funds.
• The U.S. Attorney’s Office for the Southern District of New York indicted a ring of individuals who laundered money for romance scams and business email compromise fraud schemes.

The charges also consisted of cases brought against individuals who facilitated business email compromise schemes, including charges brought by the U.S. Attorney’s Offices for the Eastern District of Virginia, the Eastern District of Wisconsin and the Western District of Kentucky. Additional charges were brought against money mules by U.S. Attorney’s Offices for the Northern District of Georgia, the Eastern District of Louisiana, and the District of Nebraska.

Criminal charges are merely allegations. Defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Community Outreach and Prevention

Agencies also turned their attention to educating the public about how fraudsters recruit individuals to serve as money mules, signs of money mule activity and steps that should be taken if someone has unknowingly facilitated fraud by moving money.

These efforts included:

• The Eastern District of Texas’s Elder Justice Coordinator filmed an FBI Public Service Announcement with the Northern District of Texas warning the public about Money Mules.
• U.S. Postal Inspection Service created fliers that were displayed in post offices across the country during the Money Mule Initiative.
• FBI’s Internet Crime Complaint Center (IC3) released a money mule public service announcement.
• The Department of Labor Office of Inspector General provided information about money mule activity to state work force agencies.
• Members of the Attorney General’s Coronavirus Fraud Enforcement Task Force used outreach materials created by the Pandemic Response Accountability Committee (PRAC) to educate the public about the use of money mules to steal pandemic relief funds.

Other government agencies joining the public awareness effort included the Consumer Financial Protection Bureau, which created new money mule scam awareness materials, as well as the Department of Health and Human Services’ Administration for Community Living and AmeriCorps Seniors. By increasing awareness of money mule activity, these efforts and others sought to prevent individuals from becoming involved in money mule activity.

For more information on money mules, please visit https://www.justice.gov/civil/consumer-protection-branch/money-mule-initiative.

Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice. Additional information about the Consumer Protection Branch and its elder fraud enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).    

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. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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BEAUMONT, Texas – The Department of Justice announced more than $139 million in grant funding through the department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The awards provide direct funding to 183 law enforcement agencies across the nation, allowing those agencies to hire 1,066 additional full-time law enforcement professionals. In the Eastern District of Texas, San Augustine County, was awarded funding totaling $241,340.

“The U.S. Attorneys’ Office is proud to be a partner with the San Augustine County Sheriff’s Office,” said U.S. Attorney Brit Featherston.  “This supplement will help keep citizens of the county safer and it will improve officer safety for the department.”

“We are committed to providing police departments with the resources needed to help ensure community safety and build community trust,” said Attorney General Merrick B. Garland. “The grants we are announcing today will enable law enforcement agencies across the country to hire more than 1,000 additional officers to support vitally important community oriented policing programs.”

CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers, thereby increasing their community policing capacity and crime prevention efforts. Of the 183 agencies awarded grants today, approximately half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 41 agencies will seek to address high rates of gun violence; 21 will focus on other areas of violence; and 19 will focus CHP resources on combating hate and domestic extremism or supporting police-based responses to persons in crisis. The complete list of awards can be found here.  

Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY21, COPS received 590 applications requesting nearly 3,000 law enforcement positions. For FY22, President Biden has requested $537 million for CHP, an increase of $300 million.

To learn more about CHP, please visit https://cops.usdoj.gov/chp-award. For additional information about the COPS Office, please visit https://cops.usdoj.gov/.  

The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.

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A federal jury convicted a Texas man and a Missouri man on Tuesday of Racketeer Influenced and Corrupt Organizations charges stemming from their membership in the white supremacy prison gang, the Aryan Circle, between 2010 and 2021. 

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

Evidence presented at trial showed that William Glenn Chunn, aka Big Head, 39, of Conroe, Texas, is one of the five highest-ranking Aryan Circle leaders in the nation. He used his leadership role to order violent stabbings against rival gang members and other victims, as well as to seek out and retaliate against individuals he believed were cooperating with law enforcement. Evidence presented at trial showed that Jesse Paul Blankenship, aka JP, 38, of Stratford, Missouri, “put in work” by committing violence on behalf of the gang, including shooting at two victims inside their home and participating in a kidnapping and removal of another member’s patch, or gang tattoo, by burning it from the victim’s skin using a metal rod heated with a blowtorch. After committing these crimes, Blankenship moved up in rank in Aryan Circle and has since ordered additional acts of violence.

Chunn was convicted of racketeering conspiracy, including an enhanced sentencing factor for an attempted murder he ordered relating to a violent stabbing. Blankenship was convicted of racketeering conspiracy, kidnapping in aid of racketeering, and conspiracy to commit kidnapping in aid of racketeering. Both defendants face maximum penalties of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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

Trial Attorneys Beth Lipman and Rebecca Dunnan of the Justice Department’s Organized Crime and Gang Section and Assistant U.S. Attorney Christopher Rapp of the U.S. Attorney’s Office for the Eastern District of Texas are prosecuting the case.

BEAUMONT, Texas –A Texas man and a Missouri man were convicted at trial of Racketeer Influenced and Corrupt Organizations charges stemming from their membership in the white supremacy prison gang, the Aryan Circle, between 2010 and 2021, announced U.S. Attorney Brit Featherston today.

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

A federal jury convicted a Texas man and a Missouri man on Tuesday of Racketeer Influenced and Corrupt Organizations charges stemming from their membership in the white supremacy prison gang, the Aryan Circle, between 2010 and 2021.

Evidence presented at trial showed that William Glenn Chunn, aka Big Head, 39, of Conroe, Texas, is one of the five highest-ranking Aryan Circle leaders in the nation. He used his leadership role to order violent stabbings against rival gang members and other victims, as well as to seek out and retaliate against individuals he believed were cooperating with law enforcement. Evidence presented at trial showed that Jesse Paul Blankenship, aka JP, 38, of Stratford, Missouri, “put in work” by committing violence on behalf of the gang, including shooting at two victims inside their home and participating in a kidnapping and removal of another member’s patch, or gang tattoo, by burning it from the victim’s skin using a metal rod heated with a blowtorch. After committing these crimes, Blankenship moved up in rank in Aryan Circle and has since ordered additional acts of violence.

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

“Today’s verdicts keep two violent white supremacists from wreaking havoc and hate on the streets of America,” said ATF SAC Fred Milanowski.  “This marks the 36th and 37thconviction under Operation Noble Virtue, which began in Houston and culminated with racketeering prosecutions in six states. This far-reaching national investigation serves as a model for what can be achieved through strong collaboration with our federal, state and local partners”

Chunn was convicted of racketeering conspiracy, including an enhanced sentencing factor for an attempted murder he ordered relating to a violent stabbing. Blankenship was convicted of racketeering conspiracy, kidnapping in aid of racketeering, and conspiracy to commit kidnapping in aid of racketeering. Both defendants face maximum penalties of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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

Assistant U.S. Attorney Christopher Rapp of the Eastern District of Texas along with Trial Attorneys Beth Lipman and Rebecca Dunnan of the Justice Department’s Organized Crime and Gang Section are prosecuting these cases.

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BEAUMONT, Texas – Brit Featherston has taken the oath of office to become the United States Attorney for the Eastern District of Texas. Featherston was appointed to the position by Attorney General Merrick Garland and took the oath of office from Chief U.S. District Judge Rodney Gilstrap.                                   

“This is my home; serving and protecting the great citizens of East Texas has been my priority for a long time and it will continue into the future,” said U.S. Attorney Featherston.  “I am blessed to work with a dedicated team of professionals who make it their daily mission to protect the citizens of this great country.  I also look forward to jointly working with our law enforcement partners who bravely protect our communities every day.”

Featherston, 61, of Lumberton, is the chief federal law enforcement official in the Eastern District of Texas, which includes 43 counties stretching from the Oklahoma border to the Gulf of Mexico. The district includes six fully staffed offices in Beaumont, Plano, Tyler, Sherman, Texarkana, and Lufkin with 120 employees, including 60 prosecutors.  Featherston is responsible for the prosecution of federal criminal offenses in the district and will represent the United States in all civil litigation in the district.

Since joining the office in 1996, Featherston has served in the capacity of First Assistant U.S. Attorney, Executive Assistant U.S. Attorney, and supervisory U.S. Attorney.  He was also appointed Acting United States Attorney in September 2016 and served in that capacity for 17 months.  In January 2018, Featherston became the Justice Attaché for the U.S. Embassy in Kabul, Afghanistan.  In addition to prosecuting high-profile cases such as the dragging death of James Byrd, Jr., in Jasper County, Featherston has been instrumental in crisis management operations during numerous Southeast Texas hurricanes, as well as assisting in the establishment of a command post and the investigation and prosecution of crimes related to the space shuttle crash in 2003 in Lufkin.

Featherston was honored to have former United States Attorney Malcolm Bales, his brother Tom Featherston, and Criminal Chief Frank Coan by his side as he took his oath of office from Judge Gilstrap this afternoon.  Wife, Amy, and son, Ben, joined the ceremony by video from Texas Children’s Hospital in Houston where Ben has been in ICU since Sep. 30th recovering from a sudden illness.  Ben is a freshman at the University of Texas at Austin and daughter, Anna, is a senior at Texas A&M University in College Station.       

For more information about the U.S. Attorney’s Office for the Eastern District of Texas, please visit https://www.justice.gov/usao-edtx. 

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